Question
Goldman Sachs SEC filing for the quarter ended March 31, 2019, report contains the following lease footnote. Leases (ASC 842). In February 2016, the FASB
Goldman Sachs SEC filing for the quarter ended March 31, 2019, report contains the following lease footnote.
Leases (ASC 842). In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU requires that, for leases longer than one year, a lessee recognize in the statements of financial condition a right-of-use asset and a lease liability. It also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. The firm adopted this ASU in January 2019 under a modified retrospective approach.
The table below presents other assets by type.
$ in millions | Mar. 2019 | Dec. 2018 |
---|---|---|
Property, leasehold improvements and equipment | $19,277 | $18,317 |
Held-to-maturity securities | 5,841 | 1,288 |
Goodwill and identifiable intangible assets | 4,092 | 4,082 |
Operating lease right-of-use assets | 2,386 | - |
Income tax-related assets | 1,729 | 1,529 |
Miscellaneous receivables and other | 4,358 | 5,424 |
Total | $37,683 | $30,640 |
The table below presents other liabilities by type.
$ in millions | Mar. 2019 | Dec. 2018 |
---|---|---|
Compensation and benefits | $3,110 | $6,834 |
Income tax-related liabilities | 3,080 | 2,864 |
Operating lease liabilities | 2,413 | - |
Noncontrolling interests | 1,565 | 1,568 |
Employee interests in consolidated funds | 122 | 122 |
Accrued expenses and other | 5,884 | 6,219 |
Total | $16,174 | $17,607 |
The table below presents information about future operating lease payments.
$ in millions | Mar. 2019 |
---|---|
Remainder of 2019 | 318 |
2020 | 341 |
2021 | 262 |
2022 | 235 |
2023 | 204 |
2024 | 193 |
2025-thereafter | 2,494 |
Total undiscounted lease payments | 4,047 |
Imputed interest | (1,634) |
Total operating lease liabilities | $2,413 |
Weighted average remaining lease term | 18 years |
Weighted average discount rate | 4.85% |
Goldman Sachss 10-K report for the year ended December 31, 2018, included the following table about future cash payments required under operating leases.
$ in millions | Dec. 2018 |
---|---|
2019 | $281 |
2020 | 271 |
2021 | 218 |
2022 | 177 |
2023 | 142 |
2024 - thereafter | 1,310 |
Total | $2,399 |
What operating lease liability did Goldman Sachs report for the quarter ended March 31, 2019? $Answer
million
What right-of-use assets did Goldman Sachs report for the quarter ended March 31, 2019? $Answer
million
Use an Excel spreadsheet and the information on future operating lease payments to verify the total liabilities of $2,413 million on the 2019 Form 10-Q. Hint: The amount will not be exactly $2,413. Enter the amount computed in Excel. Round your final answer to the nearest million. $Answer
million
Use the information on rental payments from the December 2018 Form 10-K, to calculate the present value of future payments at year-end. Use the same average weighted lease term and discount rate Goldman Sachs discloses in the 2019 Form 10-Q. Enter the amount computed in Excel. Round your final answer to the nearest million. $Answer
million
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started