The following are the financial statement disclosures from the January 31, 2018, annual report of Wal-Mart Stores,
Question:
The following are the financial statement disclosures from the January 31, 2018, annual report of Wal-Mart Stores, Inc.
Instructions
Answer the following questions related to these disclosures.
a. What is the total obligation under capital leases and financial obligations at January 31, 2018, for Wal-Mart?
b. What is the total rental expense reported for leasing activity for the year ended January 31, 2018, for Wal-Mart?
c. What is the present value of minimum lease payments related to capital leases and financial obligations at January 31, 2018?
Transcribed Image Text:
Wal-Mart Stores, Inc. (dollar amounts in millions) Jan. 31, 2018 Jan. 31, 2017 Current Liabilities Capital lease and financing obligations due within one year Description and amount of lease obligations $ 667 $ 565 Noncurrent Liabilities Long-term capital lease and financing obligations $6,780 $6,003 Note 11: Commitments The Company has long-term leases for stores and equipment. Rentals (including amounts applicable to taxes, insurance, maintenance, other operating expenses and contingent rentals) under operating leases and other short-term rental arrangements were $2.9 billion, $2.6 billion and $2.5 billion in fiscal 2018, 2017 and 2016, respectively. Aggregate minimum annual rentals at January 31, 2018, under non-cancelable leases are as follows (dollar amounts in millions): General description and amount of lease rental expense Capital Lease and Financial Obligations Operating Fiscal Year Leases 2019 1,933 1,718 1,532 1,381 1,039 Description and amounts of leased assets 2020 2021 2022 2023 987 942 843 1,158 7,644 696 Thereafter 5,423 Total minimum rentals 15,366 9,930 27 Less estimated executory costs Net minimum lease payments Noncash gain on future termination of financing obligations Less imputed interest Present value of minimum lease payments 9,903 1,111 -3,567 $7,447 Nature, timing, and amounts of. cash outflows Certain of the Company's leases provide for the payment of contingent rentals based on a percentage of sales. Such contingent rentals were not material for fiscal 2018, 2017 and 2016. Substantially all of the Com- pany's store leases have renewal options, some of which may trigger an escalation in rentals.
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Related Book For
Intermediate Accounting
ISBN: 978-1119503668
17th edition
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfiel
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