Korn Business Solutions
the Following Footnote Accompanied the Company's 2013

question 70

Essay

Korn Business Solutions
The following footnote accompanied the company's 2013 financial statements:
The Corporation leases office,warehouse and showroom space,retail stores,and office equipment under operating leases,which expire no later than 2025.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,
$$\begin{array}{l}\begin{array} { l } 2014 \\2015 \\2016 \\2017 \\2018 \\\text { Thereater }\end{array}\begin{array} { l } \$ 10,051,000 \\11,121,000 \\10,161,000 \\9,063,000 \\8,814,000 \\46,681,000\end{array}\end{array}$$ Rent expense was $12,551,000;$8,911,000;and $5,768,000 for the years ended March 31,2013,2012,and 2011,respectively.
Refer to Korn Business Solutions.Does the note disclosure show evidence of the two types of leases?

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Definitions:

Warrants

Securities that give the holder the right, but not the obligation, to buy a company's stock at a predetermined price before a specified date.

Common Shares

Equity investments that represent ownership in a company, providing voting rights and potential dividends to shareholders.

Retained Earnings

The portion of a company's profits that is kept or retained and not paid out as dividends to shareholders.

Credit Card Receivables

The outstanding balances owed to a company from customers' credit card transactions, considered an asset.