The following is a schedule by year of future minimum payments required under operating leases that have initial or remaining non-cancellable lease terms in excess of one year as of December 31, 2013:

(in millions)	operating
	leases
2014	$13.0
2015	14.0
2016	13.3
2017	12.7
2018	12.7
2019 and later	45,5
Total minimum lease payments	$111.2

Required

a. Calculate the present value of the operating lease payments using a discount rate of 6%.

b. For 2013, the company reported total assets of $1,135.8 million and total liabilities of $553.9 million. What would have been the total assets and total liabilities if the company had capitalized these leases?

C. Assume that the leased equipment has a useful life of 10 years and has no salvage value. Estimate the effect on pre-tax net operating income of capitalizing these leases, assuming rental expense in 2013 equals rental expense in 2014. 

d. Explain how ROE, FLEV, RNOA, and NOAT would be affected if these leases were capitalized.