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Analyzing and Interpreting Lease Footnote Disclosures The GAP Inc. discloses the following schedule to its fiscal 2015 (ended January 30, 2016) 10-K report relating to
Analyzing and Interpreting Lease Footnote Disclosures The GAP Inc. discloses the following schedule to its fiscal 2015 (ended January 30, 2016) 10-K report relating to its leasing to its leasing activities. The aggregate minimum noncancelable annual lease payments under leases in effect on January 30, 2016, are as follows:
Fiscal Year ($ millions) | |
---|---|
2016 | $1,235 |
2017 | 1,198 |
2018 | 1,046 |
2019 | 921 |
2020 | 782 |
Thereafter | 2,418 |
Total minimum lease commitments | $7,600 |
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 | 1,165 |
Year 2 | 1,066 |
Year 3 | 878 |
Year 4 | 703 |
Year 5 | 584 |
After 5 | ???????? |
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