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AMR Corp. disclosed the following lease information in its 2011 annual report related to its leasing activities (in millions). Capital Leases Operating Leases 2012 $

AMR Corp. disclosed the following lease information in its 2011 annual report related to its leasing activities (in millions).

Capital

Leases

Operating Leases

2012

$ 167

$ 1,176

2013

149

1,091

2014

129

942

2015

118

779

2016

78

685

Thereafter

477

5,940

Total

1,118

$10,613

Amount representing interest

(439)

Present value of net minimum lease payments

$ 679

a. What did AMR report on its 2011 balance sheet related to leases?

b. Calculate the lease-related liabilities that are potentially missing from AMRs 2011 balance sheet. Assume a discount rate of 11% and assume that the payments made in 2017 and beyond are made in 9 installments.

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