STARBUCKSS 2016 LEASE FOOTNOTE EXCERPTS The company mainly uses operating leases. Rental expense under operating lease agreements (in millions): Fiscal Year Ended Minimum rentals Contingent rentals Total Oct. 2, 2016 $1,092.5 130.7 $1,223.2 Sept. 27, 2015 $1,026.3 111.5 $1,137.8 Sept. 28, 2014 $907.4 66.8 $974.2 Minimum future rental payments under noncancelable operating leases as of October 2, 2016 (in millions): Fiscal Year Ending 2017 2018 2019 2020 2021 Thereafter Total minimum lease payments $1,125.1 1,006.2 896.4 821.3 740.5 2,695.5 $7,285.0 3. Assume a discount rate of 6 percent and that the amount in the thereafter row in Starbucks's footnote disclosure is equally spread over the years 20222026. What is the present value of Starbucks's operating leases at the end of fiscal 2016? (Enter your answer in millions rounded to 2 decimal places.) Present value million 4. What is the impact on Starbucks's 2016 debt-to-equity ratio of adding the present value of its operating leases to the liability section of its 2016 balance sheet? (Round your answers to 2 decimal places.) Debt-to-Equity Ratio Before adjustment After adjustment