On January 1, 2011, Southwest and the Boeing Company (NYSE:BA),
the aircraft manufacturer, entered into a lease agreement to lease
3 new Boeing 737-800 passenger airplanes. The lease term is 20
years, which is equal to the useful life of the airplanes. At the
end of the lease term the equipment will have zero residual value
and will be returned to Boeing. The lease specifies annual payments
of $25 million beginning January 1, 2011, and then on January 1 of...