Comprehensive Annual Financial Report for the ... - WMATA.com

Washington Metropolitan Area Transit AuthorityFY 2009 Comprehensive Annual Financial Report(10) Commitments and Contingencies (Continued)Notes to Basic Financial StatementsJune 30, 2009 and 2008(a)Litigation and Claims (Continued)Changes in the actuarially developed liability for years ended June 30, 2009 and 2008 are as follows(in thousands):2009 2008Estimated net present value of the liability forinjury and damage claims, beginning of year $ 111,525 $ 97,264Incurred new claims 39,365 23,826Changes in estimate for claims of prior periods 11,110 18,191Payments on claims (35,857) (27,756)Estimated net present value of the liability forinjury and damage claims, end of year $ 126,143 $ 111,525Due within one year $ 47,462 $ 39,220The Authority is a party to a number of claims arising from the construction of the transit system.These matters principally relate to contractor claims for additional compensation in excess of theoriginal contract price. In the opinion of management, including its General Counsel, the ultimateresolution of these matters will not have a material effect on the Authority's financial position andresults of operations.(b) Leasing CommitmentIn September 1999, the Authority entered into a 10-year operating lease for office space in SilverSpring, MD. The terms of the lease set forth scheduled rent increases to occur annually. Leasepayments for years ended June 30, 2009 and 2008 are $963,443 and $727,000, respectively. Inaddition, the Authority entered into a new 10 year three month operating lease for office space inHyattsville, MD on September 2008. The terms of the new lease set forth a scheduled minimum annualrent of $880,000.The Authority's minimum lease payments as of June 30, 2009 are as follows (in thousands):Fiscal Year Total2010 $ 1,1232011 8802012 8802013 8802014 8802015 8802016 8802017 8802018 8802019 8802020 73$ 9,11655