CHAPTER 15 Leases 883 Walmart leases facilities under both operating and capital leases. Its long-term obligations under these lease agreements are disclosed in a note to its financial statements (see Illustration 15–18 ). Real World Financials F Financing Receivables (in part) (dollars in millions) At December 31: 2013 2012 Current: Net investment in sales-type and direct financing leases $ 4,004 $ 3,862 Commercial financing receivables 8,541 7,750 Client loan receivables 5,854 5,395 Installment payment receivables 1,389 1,031 Total $19,787 $18,038 Noncurrent: Net investment in sales-type and direct financing leases $ 5,700 $ 6,107 Commercial financing receivables — 5 Client loan receivables 6,360 5,966 Installment payment receivables 695 733 Total $12,755 $12,812 Net investment in sales-type and direct financing leases relates principally to the company’s systems products and are for terms ranging generally from two to six years. Net investment in sales-type and direct financing leases includes unguaranteed residual values of $737 million and $794 million at December 31, 2013 and 2012, respectively, and is reflected net of unearned income of $672 million and $728 million, and net of the allowance for credit losses of $123 million and $114 million at those dates, respectively. Note: Totals may not equal the sum of the numbers reported due to rounding of those individual numbers. Illustration 15–17 Lessor Disclosure of Sales-Type Leases—IBM Corporation Real World Financials Note 11 Commitments (in part) 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 $2.8 billion, $2.6 billion and $2.4 billion in fiscal 2014, 2013 and 2012, respectively. Aggregate minimum annual rentals at January 31, 2014, under non-cancelable leases are as follows: ( Amounts in millions) Fiscal Year Operating Leases Capital Leases 2015 $ 1,734 $ 586 2016 1,632 558 2017 1,462 519 2018 1,314 479 2019 1,192 438 Thereafter 9,836 3,711 Total minimum rentals $17,170 $ 6,291 Less estimated executory costs (60) Net minimum lease payments 6,231 Less imputed interest (3,134) Present value of minimum lease payments $ 3,097 Illustration 15–18 Lessee Disclosure of Leases—Walmart
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