Use the following information from notes to Delta Airlines 2017 financial statements to determine estimated adjustments in reclassifying all operating leases as capital leases. (21 points)

Excerpts from Lease Footnotes (2017)
	$ Millions			Delta
			Capital		Operating
MLP Due
	2018		116		1,735
	2019		92		1,589
	2020		65		1,430
	2021		41		1,156
	2022		24		1,036
	Thereafter		126		9,290
Total minimum lease payments			464		16,236
Less: amount of lease payments representing interest			(70)
Present Value of future MLP			394
Less: current obligations under capital leases			(97)
Long-term capital lease obligations			297

1. Estimate Average Remaining Lease Term for Operating Leases (as of Dec. 31, 2017). Round to the nearest whole number of years.

2. Estimate the Interest Rate on Capital Leases. Round to four decimal places (for example, 3.55%, not 3.5491%).

3. Estimate Average MLP per year on Operating Leases. Round to $ Millions (i.e., no decimal places).

4. Estimate the Present Value of Operating Leases (as of Dec. 31, 2017). Use a present value factor with five decimal places. Round to $ Millions (i.e., no decimal places).

5. Estimate Interest Expense and Depreciation Expense on the reclassified Operating Leases (2018). Round to $ Millions (i.e., no decimal places).

6. Estimate Effect of Operating Lease Conversion on Income Statement (2018).

	Change in Depreciation Expense
	Change in Lease Rental Expense
	Effect on Operating Income
	Change in Interest Expense
	Effect on Income before Tax
	Change in Tax Provision (35%)
	Effect on Continuing Income

7. Determine Principal and Interest Component of Next Year's MLP

8. Decompose Operating Lease Liability into Current and Non-Current Components