The ABC Companies, Inc. adopted the new lease standard in fiscal year ending in February 2020. a. What is the operating lease liability as of February 1, 2020? Verify the present value calculation in the footnote and the amount on the balance sheet match. b. What is the amount of operating lease assets as of February 1, 2020? Why arent the asset and liability equal?

Additional information related to our operating leases is as follows (in thousands, except weighted-average data): Fiscal Year 2019 430,871 296,289 6.0 years 5.9% Operating cash outflows included in the measurement of lease liabilities Operating lease assets obtained in exchange for new operating lease liabilities Weighted average remaining lease term Weighted average discount rate $ Maturities of our lease liabilities are as follows as of February 1, 2020 (in thousands): $ Fiscal Year 2020 2021 2022 2023 2024 Thereafter Total lease payments Less: Interest Present value of lease liabilities 395,672 388,112 326,224 263,431 202,604 427,752 2,003,795 (339,178) 1,664,617 $ Lease payments exclude $71.1 million related to 21 leases that have been signed as of February 1, 2020 but have not yet commenced. Rent Commitments Under Previous Lease Accounting Standard Future minimum annual rental commitments for all non-cancelable operating leases as of February 2, 2019 are as follows (in thousands): S Fiscal Year 2019 2020 2021 2022 2023 Thereafter Total minimum rental commitments 428,698 386,466 331,032 268,667 206,424 508,178 2,129,465 Rent expense applicable to non-cancelable operating leases was $423.8 million and $425.5 million in fiscal 2018 and fiscal 2017, respectively. Additional information related to our operating leases is as follows (in thousands, except weighted-average data): Fiscal Year 2019 430,871 296,289 6.0 years 5.9% Operating cash outflows included in the measurement of lease liabilities Operating lease assets obtained in exchange for new operating lease liabilities Weighted average remaining lease term Weighted average discount rate $ Maturities of our lease liabilities are as follows as of February 1, 2020 (in thousands): $ Fiscal Year 2020 2021 2022 2023 2024 Thereafter Total lease payments Less: Interest Present value of lease liabilities 395,672 388,112 326,224 263,431 202,604 427,752 2,003,795 (339,178) 1,664,617 $ Lease payments exclude $71.1 million related to 21 leases that have been signed as of February 1, 2020 but have not yet commenced. Rent Commitments Under Previous Lease Accounting Standard Future minimum annual rental commitments for all non-cancelable operating leases as of February 2, 2019 are as follows (in thousands): S Fiscal Year 2019 2020 2021 2022 2023 Thereafter Total minimum rental commitments 428,698 386,466 331,032 268,667 206,424 508,178 2,129,465 Rent expense applicable to non-cancelable operating leases was $423.8 million and $425.5 million in fiscal 2018 and fiscal 2017, respectively