assets - TIAA-CREF

ANNUAL STATEMENT FOR THE YEAR 2011 OF THE TEACHERS INSURANCE and ANNUITY ASSOCIATION of AMERICANOTES TO FINANCIAL STATEMENTS(2)a. Assets recognized from paid and accruedpremium tax offsets prior year end ....................$ 828,577b. Decreases current yearPremium tax offset applied............................... (150,715 )c. Increases current yearAssessments paid....................................... 46,153d. Assets recognized from paid and accruedpremium tax offsets current year end.................$ 724,015C. Gain ContingenciesNot applicable.D. Claims Related Extra Contractual Obligation and Bad Faith Losses Stemming from LawsuitsNot applicable.E. All Other Contingencies15. LeasesContingent liabilities arising from litigation, and other matters, over and above amounts already provided forin the financial statements or disclosed elsewhere in these notes, are not considered material in relation tothe Company’s financial position or the results of its operations.A. (1) The Company leases office space under various non-cancelable operating lease agreements. Rentalexpense was $34,273,573 and $31,883,086 for 2011 and 2010, respectively.(2) At January 1, 2012 the minimum aggregate rental commitments are as follows:Year Ending December 312012 $ 35,957,2052013 32,809,8082014 29,414,2032015 28,336,2922016 23,094,118Thereafter 36,817,522Total $ 186,429,149(3) The Company has no sale-leaseback transactions.B. (1) For Operating Leasesa. The Company owns and leases real estate properties. The properties are leased to tenants in avariety of industries under various; non-cancelable leases with a typical lease period of five to twentyyears and some leases contain renewal options. The minimum rental amounts due under the leasesare generally subject to either scheduled fixed increases or other adjustments. The leases alsogenerally require that the tenants are billed for increases in certain operating costs and real estatetaxes above the tenant’s base year costs.b. At December 31, the cost, accumulated depreciation and carrying values of real estate directlyowned by the Company are as follows:2011 2010Cost ..........................................$ 2,073,270,998 $ 1,771,554,087Accumulated depreciation.............. (478,106,831 ) (430,925,756 )Carrying value .............................$ 1,595,164,167 $ 1,340,628,331At December 31, the carrying values of real estate investments were diversified by property type asfollows:Property Type 2011 2010Office buildings ....................................................... 66.2% 59.8%Industrial buildings ................................................... 22.2 22.9Mixed-use projects................................................... 6.2 7.5Apartments ............................................................ 3.8 7.7Land held for future development................................ 1.6 2.1Total................................................................. 100.0% 100.0%19.16