nalyzing and Interpreting Lease Footnote Disclosures he GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing act he aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 $1,156 2020 1,098 2021 892 2022 730 2023 539 Thereafter 1,520 Total minimum lease commitments $5,935 ompute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole y ound each answer to the nearest whole number. 5 million Present Value Year 1 $ 1,091 Year 2 977 ✔ Year 3 749✔ Year 4 578 Year 5 403 After 5 1,135 x $ 4,904 x

Essentials Of Investments
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Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Analyzing and Interpreting Lease Footnote Disclosures
The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing activities.
The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows:
Fiscal Year ($ millions)
2019
$1,156
2020
1,098
2021
892
2022
730
2023
539
Thereafter
1,520
Total minimum lease commitments $5,935
Compute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole year.
Round each answer to the nearest whole number.
$ million Present Value
Year 1
$
1,091
Year 2
977
Year 3
749✓
Year 4
578 ✓
Year 5
403
After 5
1,135 x
$
4,904 x
Transcribed Image Text:Analyzing and Interpreting Lease Footnote Disclosures The GAP Inc. discloses the following schedule to its fiscal 2018 (ended February 2, 2019) 10-K report relating to its leasing to its leasing activities. The aggregate minimum noncancelable annual lease payments under leases in effect on February 2, 2019, are as follows: Fiscal Year ($ millions) 2019 $1,156 2020 1,098 2021 892 2022 730 2023 539 Thereafter 1,520 Total minimum lease commitments $5,935 Compute the present value of GAP's operating leases using a 6% discount rate and round the remaining lease term to the nearest whole year. Round each answer to the nearest whole number. $ million Present Value Year 1 $ 1,091 Year 2 977 Year 3 749✓ Year 4 578 ✓ Year 5 403 After 5 1,135 x $ 4,904 x
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