Target Corporation prepares its financial statements according to U.S. GAAP. Target’s financial statements and disclosure notes for the year ended February 3, 2018, are available in Connect. This material is also available under the Investor Relations link at the company’s website (www.target.com). Target leases most of its facilities.

Required:
1. Refer to disclosure note 22 following Target’s financial statements. What is the amount reported for “capital” leases (shown as the present value of minimum lease payments)? What is the total of those lease payments? What accounts for the difference between the two amounts?
2. What is the total of the operating lease payments?
3. New lease accounting guidance (discussed in Chapter 15) will require companies to report a liability for operating leases at present value as well as for capital leases (now called finance leases). If Target had used the new lease accounting guidance in its fiscal 2017 financial statements, what would be the amount reported as a liability for operating leases?