State Corporation
Below Is a Note on Disclosure of Leases

question 78

Essay

State Corporation
Below is a note on Disclosure of Leases for the State Corporation.
The State Corporation leases office, warehouse and showroom space, retail stores and office equipment under operating leases, which expire no later than 2027. The Corporation normalizes fixed escalations in rental expense under its operating leases. Minimum annual rentals under non-cancelable operating leases, excluding operating cost escalations and contingent rental amounts based upon retail sales, are payable as follows:
Fiscal year ending March 31,
$$\begin{array} { ll } 2013&\$ 10,051,000 \\2014&11,121,000 \\2015&10,161,000 \\2016&9,063,000 \\2017&8,814,000 \\Thereafter&46,681,000\end{array}$$ Rent expense was $12,551,000; $8,911,000; and $5,768,000 for the years ended March 31, 2012, 2011, and 2010, respectively.
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Refer to the information provided for State Corporation. Does the note disclosure show evidence of the two types of leases?

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Definitions:

Positive Reinforcers

Stimuli that, when introduced after a response, increase the probability of that response occurring in the future.

Heel

The posterior part of the foot below the ankle or the back end of a shoe or sock designed to support the heel of the foot.

Smooches

Smooches are affectionate kisses.

Treat

Something that gives pleasure or enjoyment, often used as a reward or part of a celebration.