But what, what we're really interested in is trying to figure out

how big these operating leases would be if they would be on the balance sheet.

And we can see down here is a disclosure of all of the expected cash payments

they're going to make on these leases from 2013 going to 2017 and beyond.

And notice the operating leases,

the cash flow payments are much bigger than the capital leases.

I don't know if you remember this the last time we

looked at property plan equipment but.

capital leases for 3M are not that big, I think it's about $100 million or

so that they have on the balance sheet, but operating leases, it's a lot more that

they're keeping off balance sheet, and this is something where last week we were

speculating, part of the reason why 3M didn't seem to have a lot of.

Property plant equipment, or

a lot of depreciation could be these operating leases.

So, what we're going to try now is to estimate how big these operating leases

would be, if they were actually put on the balance sheet as assets and liabilities.

'Kay, so I'm going to pop into Excel.

And we're going to try and

figure out the present value of these operating lease cash flows.

because the present value of this cash flows is one way that we can estimate what

the liability would be if these were on the balance sheet.

So I've copied over the future cash flows into these Excel cells.

These cells in Excel, and we just are going to take the present value.

Now one issue we have is we've got this after 2017,

and it's hard to take the present value of something that's that amorphous.

So we're going to have to make an assumption.

So what we're going to do is carry over these payments, but for

the after 2017, I'm going to split it up into two payments after that,

just to make the present value easier.

So I'm going to assume that this is,

the way the trend is going that there's going to be two more payments, one of 60.

And one of 59 you could split it into three if you wanted,

do it more complicated, but you're going to get sort of the same answer.

Now that we have the payment stream, what we can do is go ahead and

calculate the present values.