Analyzing, Interpreting and Capitalizing Operating Leases Staples Inc. reports the following footnote relating to its operating leases in its 10-K report for the 2015 fiscal year ended January 30, 2016 ($ thousands).

Future minimum lease commitments due for retail, distribution, fulfillment and support facilities

(including restructured facilities) and equipment leases under non-cancelable operating leases are as follows (in millions):

Fiscal Year Total 2016 . . . . . . . . . . . . . . . . . . . . . $ 685 2017 . . . . . . . . . . . . . . . . . . . . . 563 2018 . . . . . . . . . . . . . . . . . . . . . 424 2019 . . . . . . . . . . . . . . . . . . . . . 317 2020 . . . . . . . . . . . . . . . . . . . . . 230 Thereafter . . . . . . . . . . . . . . . . . 443

$2,662

a. What dollar adjustment(s) might we consider to Staples’ balance sheet and income statement given this information and assuming that Staples intermediate-term borrowing rate is 8% and rounding the remaining lease life to the nearest whole year? Explain.

b. Would the adjustment from part a make a substantial difference to Staples’ total liabilities? (Staples reported total assets of nearly $10,172 million and total liabilities of nearly $4,788 million for fiscal 2015.)