Cool City is a retailer of stereos and televisions. Its EBIT is $150 million after operating lease expenses of $50 million. The appropriate interest rate is 10% and tax rate is 30%. The firms operating lease commitments for the next 5 years are as follows.

Year	Operating lease commitment
1	55
2	60
3	60
4	55
5	50

Estimate the effect of the adjustment for operating leases on the companys balance sheet.