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Analyzing, Interpreting, and Capitalizing Operating Lease

Goldman Sachs' SEC filing for the quarter ended March 31, 2019, report contains the following lease footnote.

Leases (ASC 842). In February 2016, the FASB issued ASU No. 2016-02, Leases (Topic 842). This ASU requires that, for leases longer than one year, a lessee recognize in the statements of financial condition a right-of-use asset and a lease liability. It also requires that for finance leases, a lessee recognize interest expense on the lease liability, separately from the amortization of the right-of-use asset in the statements of earnings, while for operating leases, such amounts should be recognized as a combined expense. The firm adopted this ASU in January 2019 under a modified retrospective approach.

The table below presents other assets by type.

$ in millionsMar. 2019Dec. 2018Property, leasehold improvements and equipment$19,277$18,317Held-to-maturity securities5,8411,288Goodwill and identifiable intangible assets4,0924,082Operating lease right-of-use assets2,386-Income tax-related assets1,7291,529Miscellaneous receivables and other4,3585,424Total$37,683$30,640

The table below presents other liabilities by type.

$ in millionsMar. 2019Dec. 2018Compensation and benefits$3,110$6,834Income tax-related liabilities3,0802,864Operating lease liabilities2,413-Noncontrolling interests1,5651,568Employee interests in consolidated funds122122Accrued expenses and other5,8846,219Total$16,174$17,607

The table below presents information about future operating lease payments.

$ in millionsMar. 2019Remainder of 2019318202034120212622022235202320420241932025-thereafter2,494Total undiscounted lease payments4,047Imputed interest(1,634)Total operating lease liabilities$2,413Weighted average remaining lease term18 yearsWeighted average discount rate4.85%

Goldman Sachs's 10-K report for the year ended December 31, 2018, included the following table about future cash payments required under operating leases.

$ in millionsDec. 20182019$28120202712021218202217720231422024 - thereafter1,310Total$2,399


What operating lease liability did Goldman Sachs report for the quarter ended March 31, 2019?

$Answer



million


What right-of-use assets did Goldman Sachs report for the quarter ended March 31, 2019?

$Answer



million


Use an Excel spreadsheet and the information on future operating lease payments to verify the total liabilities of $2,413 million on the 2019 Form 10-Q. Hint: The amount will not be exactly $2,413.

Enter the amount computed in Excel. Round your final answer to the nearest million.

$Answer



million


Use the information on rental payments from the December 2018 Form 10-K, to calculate the present value of future payments at year-end. Use the same average weighted lease term and discount rate Goldman Sachs discloses in the 2019 Form 10-Q.

Enter the amount computed in Excel. Round your final answer to the nearest million.

$Answer



million

Answer & Explanation
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