The GAP, Inc. discloses the following schedule to its 2013 10-K report relating to its leasing activities.
The aggregated minimum noncancelable annual lease payments under leases in effect on February 2, 2013, are as follows:
Fiscal Year ($ millions)
2013-$1,093
2014-$1,069
2015-$924
2016-$753
2017-$584
Thereafter-$1,709
Total minimum lease commitments-$6,132
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.
What types of adjustments might we consider to GAP’s balance sheet and income statement for analysis purposes?