NOTE 9. Leases
Leases as of September 30, 2005 and 2004
(Dollars in Thousands)
| Entity as Lessee |
| Capital Leases: |
FY 2005 |
FY 2004 |
| Summary of Assets Under Capital Lease: |
|
|
| Buildings |
$6,365 |
$6,872 |
| Accumulated Depreciation |
$1,864 |
$1,423 |
| Net Assest under Capital Leases |
$4,501 |
$5,449 |
| Future Payments Due: |
| Fiscal Year |
Future Costs |
Future Costs |
| 2005 |
$– |
$785 |
| 2006 |
195 |
471 |
| 2007 |
165 |
431 |
| 2008 |
45 |
192 |
| 2009 |
45 |
164 |
| 2010 |
45 |
– |
| After 5 Years |
158 |
– |
| Net Capital Lease Liability |
653 |
2,043 |
| Lease Liabilities Covered by Budgetary Resources |
653 |
2,043 |
| Lease Liabilities Not Covered by Budgetary Resources |
– |
– |
| The capital lease liability is reported on USAID's Balance Sheet under Other Liabilities. |
| Operating Leases: |
FY 2005 |
FY 2004 Recast |
| Future Payments Due: |
| Fiscal Year |
Future Costs |
Future Costs |
| 2005 |
$ – |
$ 76,968 |
| 2006 |
77,861 |
75,258 |
| 2007 |
76,467 |
73,798 |
| 2008 |
75,332 |
73,207 |
| 2009 |
74,094 |
70,020 |
| 2010 |
72,219 |
75,773 |
| After 5 Years |
19,515 |
– |
| Total Future Lease Payments |
$ 395,489 |
$ 445,024 |
Of the $395.5 million in future lease payment, $153.5 is attributable to the Ronald Regan Building. The stepped rent schedule on the Ronald Reagan Building in Washington D.C., USAID's headquarters expired September 30, 2005. The occupancy agreement for the Ronald Reagan Building in Washington D.C will expire September 30, 2010. This building is leased by the General Services Administration (GSA). USAID is charged rent intended to approximate commercial rental rates. Lease payments for FY 2005 and 2004 amounted to $40.5 million and $39 million respectively.
The Agency's missions have various long term leases for overseas real property that meet the criteria as a capital lease in accordance with SFFAS No. 6, Accounting for Property, Plant, and Equipment. Assets that meet the definition of a capital lease and their related lease liability, are initially recorded at the present value of the future minimum lease payments or fair market value, whichever is less. Capital assets are depreciated over the estimated remaining life of the asset, and the related liability is amortized over the term of the lease, which can result in a different value in the asset versus the liability.
In FY 2004, Total Future Lease Payments were presented in Note 9 as $203 million. Future operating lease costs for the RRB for years 2006 and beyond were not available as of year-end reporting last year and thus not included in that amount. Total Future Lease Payments for FY 2004 should have been reflected as $445 million. The amounts presented in the FY 2004 Future Costs column have been recast to reflect the $445 million.
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