5. AMR's subsidiaries lease various types of equipment and property, primarily aircraft and airport facilities. The future minimum lease payments required under capital leases, together with the present value of such payments, and future minimum lease payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of December 31, 2010, were (in millions): (Marks: 6) Year Ending December 31 Operating Leases 2011 $ 2580 2012 2034 2013 1860 2014 1590 2015 1356 2016 and thereafter 12,050 AMR further disclosed that "lease terms vary but are generally 10 to 20 years for aircraft and 7 to 40 years for other leased property and equipment". Assuming all leases are for aircraft with an average lease term of 15 years. Use the rate of 12% to capitalize AMR's operating leases at December 31, 2010. Record the adjustment in AMR's balance sheet to reflect the capitalization of operating lease. How would this reporting change affect AMR's income statement in 2011? (Assume tax rate at 35%)