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E10-30. Analyzing, Interpreting and Capitalizing Operating Leases Staples Inc. reports the following footnote relating to its operating leases in its 10-K report for the 2015

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E10-30. Analyzing, Interpreting and Capitalizing Operating Leases Staples Inc. reports the following footnote relating to its operating leases in its 10-K report for the 2015 fiscal year ended January 30, 2016 ( thousands). LOI Staples Inc. (SPLS) Future minimum lease commitments due for retail, distribution, fulfillment and support facilities (including restructured facilities) and equipment leases under non-cancelable operating leases are as follows (in millions): Fiscal Year Total 2016... $ 685 563 424 2017.. 2018 2019 2020. Thereafter $2.662 a. What dollar adjustments) might we consider to Staples' balance sheet and income statement given this information and assuming that Staples intermediate-term borrowing rate is 8% and rounding the remaining lease life to the nearest whole year? Explain. b. Would the adjustment from part a make a substantial difference to Staples total liabilities? (Staples reported total assets of nearly $10,172 million and total liabilities of nearly $4,788 million for fiscal 2015.) E10-30. Analyzing, Interpreting and Capitalizing Operating Leases Staples Inc. reports the following footnote relating to its operating leases in its 10-K report for the 2015 fiscal year ended January 30, 2016 ( thousands). LOI Staples Inc. (SPLS) Future minimum lease commitments due for retail, distribution, fulfillment and support facilities (including restructured facilities) and equipment leases under non-cancelable operating leases are as follows (in millions): Fiscal Year Total 2016... $ 685 563 424 2017.. 2018 2019 2020. Thereafter $2.662 a. What dollar adjustments) might we consider to Staples' balance sheet and income statement given this information and assuming that Staples intermediate-term borrowing rate is 8% and rounding the remaining lease life to the nearest whole year? Explain. b. Would the adjustment from part a make a substantial difference to Staples total liabilities? (Staples reported total assets of nearly $10,172 million and total liabilities of nearly $4,788 million for fiscal 2015.)

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