Triangle Air Lines is one of the largest airlines in the world. It provides scheduled passenger service, airfreight, mail, and other related aviation services. Selected balance sheet information from Triangle’s 1999 annual report is given here, along with Note 4 to the financial statements, describing Triangle’s lease obligations.

Like most airlines,Triangle leases the major portion of its assets. Most of these leases are structured to meet the FASB’s criteria for operating leases.Accounting standards require that the minimum annual rental commitments under both capital and operating leases be disclosed for the ensuing five years and in the aggregate for later years.

Triangle Air Lines, Inc.

Selected Financial Information, 1999 Annual Report

(Dollars in Thousands)

Balance sheet Current assets $ 1,698,444 Property and equipment 7,093,312 Other assets 1,369,818 Total $10,161,574 Current liabilities $ 3,542,814 Noncurrent liabilities and other credits 4,724,692 Total liabilities 8,267,506 Common stockholders’ equity 1,894,068 Total $10,161,574 Net loss $ 506,318 Triangle Air Lines, Inc.

Footnote Disclosures of Lease Obligations 1999 Annual Report Note 4. Lease Obligations:

The company leases certain aircraft, airport terminal and maintenance facilities, ticket offices, and other property and equipment under agreements with terms of more than one year. Rent expense is generally recorded on a straightline basis over the lease term.Amounts charged to rental expense for operating leases were $997,326,000 in fiscal 1999; $668,848,000 in 1998; and

$545,542,000 in fiscal 1997.

On June 30, 1999, the Company’s minimum rental commitments under capital leases and noncancelable operating leases with initial or remaining terms of more than one year were as follows on the next page.