1. Using the information provided by Claus Corporation, estimate the average life of the operating leases.

2. Using the information provided by Claus Corporation, calculate the present value of the operating leases.

Santa Corporation manufactures Christmas decorations and supplies throughout the world. The company owns property, plants, and equipment and also enters into operating leases for certain facilities. Assume that Santa's incremental borrowing rate is 8%. The company's tax rate is 40%. Listed below are selected financial data for Santa and a portion of the company's operating lease footnote. Property, Plant, & Equipment (net) Total Assets Common Shareholders' Equity 2012 $ 882,468 1,756,854 867,992 2011 $_717453 1,405,484 652,626 2010 $ 658,214 1,254,896 587,951 Sales Cost of Goods Sold Depreciation Expense Interest Expense Net Income $2,922,915 2,016,811 78,584 106,663 248,448 $2,415,632 1,642,630 67,542 90,343 217,407 O Claus Corp. Operating Lease Disclosure (amounts in thousands) Operating Lease Commitments at the end of 2012 Year 2013 2014 2015 2016 2017 Beyond 2017 Reported Lease Commitments $148,239 $252,800 $278,327 $279,210 $285,452 $2,471,600