An operating lease is treated like a rental contract. Neither the leased asset nor the associated liability is reported on the lessee balance sheet, but the rights may be very similar to the rights of an owner. The lessee only records the lease payments as a rental expense in income statement.

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)
Adjustments to Financial Statements for Operating Leases
Adjusted Financial Ratios for Operating Leases (Summary)
Adjusted Total Asset Turnover
Adjusted Debt to Equity
Adjusted Return on Assets (ROA)

EOG Resources Inc., future operating lease payments (before adoption of FASB Topic 842)

US$ in thousands

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total undiscounted future operating lease payments	—	555,692)	437,597)	376,883)	421,189)
Discount rate¹	—	3.92%	4.08%	4.24%	3.96%

Total present value of future operating lease payments	—	499,411)	380,358)	323,191)	363,395)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ Weighted-average interest rate for EOG Resources Inc. debt

2018 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.92%
2019	175,787)	2019	175,787)	169,156)
2020	109,498)	2020	109,498)	101,393)
2021	109,497)	2021	109,497)	97,567)
2022	45,304)	2022	45,304)	38,845)
2023	45,304)	2023	45,304)	37,380)
2024 and thereafter	70,302)	2024	45,304)	35,970)
		2025	24,998)	19,099)
Total:	555,692)		555,692)	499,411)

Based on: 10-K (reporting date: 2018-12-31).

2017 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.08%
2018	118,412)	2018	118,412)	113,770)
2019	59,292)	2019	59,292)	54,735)
2020	59,291)	2020	59,291)	52,588)
2021	44,020)	2021	44,020)	37,513)
2022	44,019)	2022	44,019)	36,042)
2023 and thereafter	112,563)	2023	44,019)	34,629)
		2024	44,019)	33,271)
		2025	24,525)	17,810)
Total:	437,597)		437,597)	380,358)

Based on: 10-K (reporting date: 2017-12-31).

2016 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 4.24%
2017	89,617)	2017	89,617)	85,972)
2018	54,928)	2018	54,928)	50,550)
2019	54,928)	2019	54,928)	48,494)
2020	34,731)	2020	34,731)	29,416)
2021	34,731)	2021	34,731)	28,219)
2022 and thereafter	107,948)	2022	34,731)	27,071)
		2023	34,731)	25,970)
		2024	34,731)	24,914)
		2025	3,755)	2,584)
Total:	376,883)		376,883)	323,191)

Based on: 10-K (reporting date: 2016-12-31).

2015 Calculations

Year	Future operating lease payments (as reported)	Year	Future operating lease payments (estimated)	Present value at 3.96%
2016	104,459)	2016	104,459)	100,480)
2017	56,977)	2017	56,977)	52,719)
2018	56,976)	2018	56,976)	50,710)
2019	37,421)	2019	37,421)	32,037)
2020	37,421)	2020	37,421)	30,817)
2021 and thereafter	127,935)	2021	37,421)	29,643)
		2022	37,421)	28,514)
		2023	37,421)	27,427)
		2024	15,672)	11,049)
Total:	421,189)		421,189)	363,395)

Based on: 10-K (reporting date: 2015-12-31).

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EOG Resources Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Adjustment to Total Assets
Total assets (as reported)	37,124,608)	33,934,474)	29,833,078)	29,459,433)	26,975,244)
Add: Operating lease right-of-use asset (before adoption of FASB Topic 842)¹	—)	499,411)	380,358)	323,191)	363,395)
Total assets (adjusted)	37,124,608)	34,433,885)	30,213,436)	29,782,624)	27,338,639)
Adjustment to Total Debt
Total debt (as reported)	5,175,443)	6,083,262)	6,387,071)	6,986,358)	6,660,264)
Add: Operating lease liability (before adoption of FASB Topic 842)²	—)	499,411)	380,358)	323,191)	363,395)
Add: Current portion of operating lease liabilities	369,365)	—)	—)	—)	—)
Add: Operating lease liabilities, excluding current portion (located in Other liabilities)	430,000)	—)	—)	—)	—)
Total debt (adjusted)	5,974,808)	6,582,673)	6,767,429)	7,309,549)	7,023,659)

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

^{1, 2} Equal to total present value of future operating lease payments.

EOG Resources Inc., Financial Data: Reported vs. Adjusted

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EOG Resources Inc., adjusted financial ratios

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
Total Asset Turnover¹
Reported total asset turnover	0.47	0.51	0.38	0.26	0.32
Adjusted total asset turnover	0.47	0.50	0.37	0.26	0.32
Debt to Equity²
Reported debt to equity	0.24	0.31	0.39	0.50	0.51
Adjusted debt to equity	0.28	0.34	0.42	0.52	0.54
Return on Assets³ (ROA)
Reported ROA	7.37%	10.08%	8.66%	-3.72%	-16.77%
Adjusted ROA	7.37%	9.93%	8.55%	-3.68%	-16.55%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

¹ See details »

² See details »

³ See details »

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	EOG Resources Inc. adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.
Adjusted debt to equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	EOG Resources Inc. adjusted debt to equity ratio improved from 2017 to 2018 and from 2018 to 2019.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	EOG Resources Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

EOG Resources Inc., Financial Ratios: Reported vs. Adjusted

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	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Operating revenues and other	17,379,973)	17,275,399)	11,208,320)	7,650,632)	8,757,428)
Total assets	37,124,608)	33,934,474)	29,833,078)	29,459,433)	26,975,244)
Activity Ratio
Total asset turnover¹	0.47	0.51	0.38	0.26	0.32
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Operating revenues and other	17,379,973)	17,275,399)	11,208,320)	7,650,632)	8,757,428)
Adjusted total assets	37,124,608)	34,433,885)	30,213,436)	29,782,624)	27,338,639)
Activity Ratio
Adjusted total asset turnover²	0.47	0.50	0.37	0.26	0.32

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ Total asset turnover = Operating revenues and other ÷ Total assets
= 17,379,973 ÷ 37,124,608 = 0.47

² Adjusted total asset turnover = Operating revenues and other ÷ Adjusted total assets
= 17,379,973 ÷ 37,124,608 = 0.47

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	EOG Resources Inc. adjusted total asset turnover ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Total debt	5,175,443)	6,083,262)	6,387,071)	6,986,358)	6,660,264)
Stockholders’ equity	21,640,716)	19,364,188)	16,283,273)	13,981,581)	12,943,035)
Solvency Ratio
Debt to equity¹	0.24	0.31	0.39	0.50	0.51
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Adjusted total debt	5,974,808)	6,582,673)	6,767,429)	7,309,549)	7,023,659)
Stockholders’ equity	21,640,716)	19,364,188)	16,283,273)	13,981,581)	12,943,035)
Solvency Ratio
Adjusted debt to equity²	0.28	0.34	0.42	0.52	0.54

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ Debt to equity = Total debt ÷ Stockholders’ equity
= 5,175,443 ÷ 21,640,716 = 0.24

² Adjusted debt to equity = Adjusted total debt ÷ Stockholders’ equity
= 5,974,808 ÷ 21,640,716 = 0.28

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Solvency ratio	Description	The company
Adjusted debt-to-equity	A solvency ratio calculated as adjusted total debt divided by total shareholders’ equity.	EOG Resources Inc. adjusted debt-to-equity ratio improved from 2017 to 2018 and from 2018 to 2019.

	Dec 31, 2019	Dec 31, 2018	Dec 31, 2017	Dec 31, 2016	Dec 31, 2015
As Reported
Selected Financial Data (US$ in thousands)
Net income (loss)	2,734,910)	3,419,040)	2,582,579)	(1,096,686)	(4,524,515)
Total assets	37,124,608)	33,934,474)	29,833,078)	29,459,433)	26,975,244)
Profitability Ratio
ROA¹	7.37%	10.08%	8.66%	-3.72%	-16.77%
Adjusted for Operating Leases
Selected Financial Data (US$ in thousands)
Net income (loss)	2,734,910)	3,419,040)	2,582,579)	(1,096,686)	(4,524,515)
Adjusted total assets	37,124,608)	34,433,885)	30,213,436)	29,782,624)	27,338,639)
Profitability Ratio
Adjusted ROA²	7.37%	9.93%	8.55%	-3.68%	-16.55%

Based on: 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31).

2019 Calculations

¹ ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 2,734,910 ÷ 37,124,608 = 7.37%

² Adjusted ROA = 100 × Net income (loss) ÷ Adjusted total assets
= 100 × 2,734,910 ÷ 37,124,608 = 7.37%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	EOG Resources Inc. adjusted ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

EOG Resources Inc. (NYSE:EOG)

Analysis of Operating Leases

Present Value of Future Operating Lease Payments (before Adoption of FASB Topic 842)

Adjustments to Financial Statements for Operating Leases

EOG Resources Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios for Operating Leases (Summary)

EOG Resources Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Debt to Equity

Adjusted Return on Assets (ROA)