Analyzing, Interpreting and Capitalizing Operating Leases TJX Companies Inc. reports the following footnote relating to its capital and operating leases in its 10-????

report.

The following is a schedule of future minimum lease payments for continuing operations as of January 30, 2016:

Fiscal Year ($ 000s) Operating Leases 2017 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,368,050 2018 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,273,888 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,150,172 2020 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,005,127 2021 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 845,910 Later years . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,354,674 Total future minimum lease payments . . . . . . . . . . . . . . . $7,997,821 Required

a. Using a ???????? discount rate and rounding the remaining lease life to the nearest whole year, compute the present value of TJ????’s operating leases. Explain the adjustments we might consider to its balance sheet and income statement using that information.

b. TJ???? reported total liabilities of ????????,192,????0???? thousand on January 30, 2016. ????ould the adjustment from part a make a substantial difference to the company’s total liabilities? Explain.