Comprehensive Annual Financial Report Fiscal Year Ended June 30, 2001 GENERAL PURPOSE FINANCIAL STATEMENTS - Notes To Financial Statements - Note 12 - Capital and Operating Leases

State of Connecticut

Note 12 Capital and Operating Leases

a.State as Lessor

The State leases building space, land, and equipment to private individuals. The minimum future lease revenues for the next five years and thereafter are as follows (amounts in thousands):

2002 $ 30,534
2003 31,004
2004 28,454
2005 22,960
2006 18,008
Thereafter 4,830
Total $ 135,790

Contingent revenues for the year ended June 30, 2001, were $2.6 million.

b. State as Lessee

Obligations under capital leases and operating leases as of June 30, 2001, were $96.9 million for capital leases and $102.4 million for noncancelable operating leases in excess of one year. The following is a schedule of annual future minimum payments under these obligations along with the present value of the related net minimum capital lease payments discounted at approximately 6 percent as of June 30, 2001 (amounts in thousands):

Rental and lease payments for equipment charged to expenditures during the year ended June 30, 2001, totaled $46.3 million.

Operating Capital Leases General
Leases Long-term
2002 $ 23,459 $ 8,441
2003 21,198 8,170
2004 16,786 6,636
2005 12,764 5,435
2006 7,371 5,359
Thereafter 20,860 62,897
Total future minimum payments $ 102,438 96,938
Less: Imputed interest 32,692
Present value of net minimum lease payments $ 64,246