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Instead of your speculation, let me be the expert to explain your speculation is wrong. 1. ASC 842 states that lease liabilities should be measured by lease te
by snake_doc 4y ago
Instead of your speculation, let me be the expert to explain your speculation is wrong.
1. ASC 842 states that lease liabilities should be measured by lease terms that are non-cancellable. In this case, these are Amazon’s non-cancellable leases.
2. The average lease term remaining is ~9-11 years for Amazon.
3. Lease liabilities are present value calculations, ie. They are not as you suggested 50 years x $1M/yr. They represent the present value of the discounted cash flows. The discount rates are disclosed.
Leases notes from latest Amazon 10-Q: https://www.bamsec.com/filing/101872422000023/1?cik=1018724&table=20 https://www.bamsec.com/filing/101872422000023/1?cik=1018724&...