Notes to the Financial Statements

June 30, 2015

Note 15 Capital and Operating Leases

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):

2016 $ 40,342
2017 39,253
2018 32,483
2019 31,792
2020 32,096
Thereafter 86,948
Total $ 262,914

Contingent revenues for the year ended June 30, 2015, were $199 thousand.

State as Lessee
Obligations under capital and operating leases as of June 30, 2015, were as follows (amounts in thousands):

Noncancelable Capital
Operating Leases Leases
2016 $ 92,437 $ 7,721
2017 18,181 6,537
2018 9,308 6,142
2019 14,675 5,674
2020 6,868 4,700
2021-2025 4,337 6,161
2026-2030 - 6,102
2031-2036 - 1,215
Total minimum lease payments $ 145,806 44,252
Less: Amount representing interest costs 8,884
Present value of minimum lease payments $ 35,368

Minimum capital lease payments were discounted using interest rates changing from 3.66 percent to 6.00 percent.

Rental payments on noncancelable operating leases charged to expenses during the year ended June 30, 2015, were $92.4 million.