M10-20. Analyzing and Interpreting Lease Disclosure Dow Chemical Company provided the following footnote in its 2015 10-K report relating to operat- ing leases. LO1 Dow Chemical Company (DOW) Leased Property The Company routinely leases premises for use as sales and administra tive offices, warehouses and tanks for product storage, motor vehicles, railcars, computers, office machines, and equipment under operating leases. In addition, the Company leases aircraft in the United States. At the termination of the leases, the Company has the option to purchase certain leased equipment and buildings based on a fair market value determi- nation Rental expenses under operating leases, net of sublease rental income, were $600 million in 2015, $539 million in 2014 and $490 million in 2013. Future minimum rental pay. ments under operating leases with remaining noncancelable terms in excess of one year are as follows: Minimum Operating Lease Commitments ($ millions) December 31, 2015 2016.... 2017... 2018... . 2019. ...... 2020........ 2021 and thereafter.... ... Total $ 302 277 249 230 215 1,500 ....$2.773 ... Required a.Dow describes all of its leases as operating." What is the significance of this designation? b.How might we treat these operating leases in our analysis of the company