Commitments
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Dec. 31, 2011
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Commitments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments | COMMITMENTS Operating Leases. CME Group has entered into various non-cancellable operating lease agreements, with the most significant being as follows:
At December 31, 2011, future minimum payments under non-cancellable operating leases were payable as follows (in millions):
Total rental expense, including equipment rental, was $41.0 million in 2011, $35.5 million in 2010 and $33.7 million in 2009. Other Commitments. Commitments include material contractual purchase obligations that are non-cancellable. Purchase obligations relate to licensing, hardware and maintenance and telecommunication services. At December 31, 2011, future minimum payments due under purchase obligations were payable as follows (in millions):
Licensing Agreements. CME Group has various licensing agreements including agreements with S&P and NASDAQ OMX Group, Inc. (NASDAQ OMX) relating to certain equity index products. The license agreement with S&P provides that the rights to S&P 500 Index futures and options will be exclusive through December 31, 2016 as long as certain volume requirements are met. The company maintains a license agreement with NASDAQ OMX, which is exclusive with respect to futures and options contracts based on certain NASDAQ OMX indexes through October 9, 2019. Other Agreements. In 1994, NYMEX entered into a letter of intent with BPCA, New York Economic Development Corporation (EDC) and Empire State Development Corporation (ESDC) to construct a new trading facility and office building on a site in Battery Park City. By agreement dated May 18, 1995, the EDC and ESDC agreed to provide funding of $128.7 million to construct the facility. NYMEX is liable for liquidated damages on a declining scale if it violates terms of the occupancy agreement at any time prior to 15 years from the date of occupancy, July 7, 1997. Such a violation could also potentially trigger a cross default under the ground lease described in operating leases. In 2002, NYMEX entered into an agreement with ESDC and received a $5.0 million grant. The agreement requires NYMEX to maintain certain annual employment levels, and in 2011 the agreement was extended through 2013. The grant is subject to recapture amounts on a declining scale through 2013. |