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## NOTES TO CONSOLIDATED FINANCIAL STATEMENTS OF AMERICAN AIRLINES, INC. 

agreements, particularly in the U.S., often contain provisions for periodic adjustments to rates and charges applicable under such agreements. These rates and charges also vary with American’s level of operations and the operations of the airport. Additionally, at American’s hub locations and in certain other cities it serves, American leases administrative offices, catering, cargo, training, maintenance and other facilities. 

The components of lease expense were as follows (in millions): 

<img src='content_image/1045166.jpg'>

Included in the table above is $226 million of operating lease cost under American’s capacity purchase agreement with Republic. American holds a 25% equity interest in Republic Holdings, the parent company of Republic. 

Supplemental balance sheet information related to leases was as follows (in millions, except lease term and discount rate): 

<img src='content_image/1045165.jpg'>

