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 AMR's 2011 balance sheet. Assume a discount rate of 11% and assume that the payments made in 2017 and beyond are made in 9 installments.