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The Aeropostale, Inc is committed non cancelable lease for their entire store, distribution centers and office space locations. Certain leases also require contingent rent based

The Aeropostale, Inc is committed non cancelable lease for their entire store, distribution centers and office space locations. Certain leases also require contingent rent based on sales.

The aggregate minimum annual real estate rent commitments as of February 2, 2013 are showing as below, along their present value using a 6% discount rate.

Fiscal Years

Estimated Lease Rentals

Discount Factor @6%

Present Value (In thousands)

2013

$143,978

0.9434

$135,828.30

2014

$133,456

0.8900

$118,775.36

2015

$120,403

0.8396

$101,092.68

2016

$105,480

0.7921

$83,550.04

2017

$94,011

0.7473

$70,250.49

Thereafter

$351,452

0.7473

$262,625.38

Total

$948,780

$772,122.25

Question: What adjustments would we consider to Aeropostales income statement corresponding to the adjustments we would make to its balance sheet, based on the asses and liabilities that were failed to report as a result of its off-balance-sheet lease financing?

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