Question

Analyzing, Interpreting and Capitalizing Operating Leases
YUM! Brands, Inc., reports the following footnote relating to its capital and operating leases in its 2015 10-K report ($ millions).

Future minimum commitments under noncancelable leases are set forth below. At December 26, 2015, the present value of minimum payments under capital leases was $169 million.

Commitments ($ millions)	Capital	Operating
2016	$20	$672
2017	20	620
2018	20	569
2019	20	516
2020	19	457
Thereafter	188	2,123
	$287	$4,957

Using a 7.634% discount rate and rounding the remaining lease life to three decimal places, compute the present value of YUM!'s operating leases. (Use a financial calculator or Excel to compute. Do not round until your final answers. Round each answer to the nearest whole number.)

($ millions)	Present Value
Year 1	Answer
Year 2	Answer
Year 3	Answer
Year 4	Answer
Year 5	Answer
After 5	Answer
Total*	Answer

* (Use subsequent rounded answers for calculation.)

Answer 1