perating Leases

Johnson & Johnson disclosed in its annual report that it leases various vehicles and machinery using operating lease agreements. According to its footnotes the minimum payments required under the noncancelable operating lease agreements were as follows:

Year Ending ($ millions)			Operating Leases
2015			$200
2016			157
2017			111
2018			80
2019			66
After 2019			77
Total			$691

If the interest rate implicit in each of the lease agreements is four percent, what is the present value of the companys noncancelable lease payments?

Round each answer to two decimal places. Use rounded answers to sum total.

*Assume "After 2019" amount is straight-lined over the remaining years using 2019 lease payment.

Enter answers in millions (as presented above in problem).

Year	Lease Payment		Present Value
2015	$Answer		$Answer
2016	Answer		Answer
2017	Answer		Answer
2018	Answer		Answer
2019	Answer		Answer
2020*	Answer		Answer
2021*	Answer		Answer
Total	$Answer		$Answer

Johnson & Johnsons long-term debt-to-equity ratio at year-end was 26.9 percent ($18,760/$69,752). If the companys operating leases were accounted for as capital leases instead of operating leases, how would the firms long-term debt-to-equity ratio change?

Compute the firm's long-term debt-to-equity ratio assuming the operating leases are accounted for as capital leases.

Round ratio to one decimal place (ex: 0.2345 = 23.5%).

Answer%