Question
Analyzing, Interpreting and Capitalizing Operating Leases Goldman Sachs' 10-K report contains the following lease footnote. This is the only information it discloses relating to its
Analyzing, Interpreting and Capitalizing Operating Leases Goldman Sachs' 10-K report contains the following lease footnote. This is the only information it discloses relating to its leasing activity. The firm has contractual obligations under long-term noncancelable lease agreements for office space expiring on various dates through 2069. Rent charged to operating expense was $249 million for 2015. The table below presents future minimum rental payments, net of minimum sublease rentals.
$ in millions | As of December 2015 |
---|---|
2016 | $317 |
2017 | 313 |
2018 | 301 |
2019 | 258 |
2020 | 226 |
2021-thereafter | 1,160 |
Total | $2,575 |
(c) Using a 6% discount rate and rounding the remaining lease life to the nearest whole year, estimate the assets and liabilities that Goldman Sachs fails to report as a result of its off-balance-sheet lease financing. (Use a financial calculator or Excel to compute. Do not round until your final answers. Round each answer to the nearest whole number.)
Present Value | |
---|---|
Year 1 | $Answer
|
Year 2 | $Answer
|
Year 3 | $Answer
|
Year 4 | $Answer
|
Year 5 | $Answer
|
After 5 | $Answer
|
Total* | $Answer
|
*Use subsequent rounded answers to compute total.
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