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Analyzing and Interpreting Lease Footnote Disclosures The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to
Analyzing and Interpreting Lease Footnote Disclosures The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing activities. The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows:
Fiscal Year ($ millions) | |
---|---|
2019 | $1,156 |
2020 | 1,098 |
2021 | 892 |
2022 | 730 |
2023 | 539 |
Thereafter | 1,520 |
Total minimum lease commitments | $5,935 |
Compute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole year. Round each answer to the nearest whole number.
$ million | Present Value |
---|---|
Year 1 | 1,091 |
Year 2 | 977 |
Year 3 | 749 |
Year 4 | 578 |
Year 5 | 403 |
After 5 | ?????? |
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