How Does GOP work for Standard ATO items?

While calculating SSD does GOP look at the supply details of the components till the leaf level in a Standard ATO item?

ATP Rule: Supply Chain Availability Search

1. FG (Manufacturing Lead Time X Days)

1.1 Component (Purchasing Lead Time Y Days)

Scenario 1

if Component is available in Stock will GOP Suggest SSD as 'Sysdate+X' Days

Scenario 2

If Component on-hand is not available will GOP Suggest SSD as 'Sysdate+X+Y' Days?