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• Teaching Note | HBS Case Collection | June 2020

  The New LAX: Ready for Takeoff?

  Boris Groysberg, Carin-Isabel Knoop, Kerry Herman and Amy Klopfenstein

  This teaching note serves as a supplement to “The New LAX: Ready for Takeoff?” HBS 420-025.

  Keywords: Change; Change Management; Transformation; Leadership; Leading Change; Leadership Style; Management; Management Practices and Processes; Management Succession; Organizations; Organizational Culture; Organizational Change and Adaptation; Mission and Purpose; Strategy; Alignment; Transportation; Air Transportation; Transportation Networks; Air Transportation Industry; North and Central America; United States; California; Los Angeles;

  Citation:

  Groysberg, Boris, Carin-Isabel Knoop, Kerry Herman, and Amy Klopfenstein. "The New LAX: Ready for Takeoff?" Harvard Business School Teaching Note 420-091, June 2020.  View Details

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• Case | HBS Case Collection | June 2020

  Accounting for Leases at American Airlines (A)

  Jonas Heese, Gerardo Pérez Cavazos and Julia Kelley

  In March 2020, as coronavirus reduced demand for air travel, an analyst was forecasting American Airlines’ (American’s) first quarter financial results. To develop a forecast, she needed to familiarize herself with Accounting Standards Update (ASU) 2016-02, “Leases (Topic 842),” passed four years earlier by the Financial Accounting Standards Board. ASU 2016-02 required companies to disclose all leases on their balance sheets, but it made an exception for leases with variable payments, allowing companies to leave such leases off-balance sheet. The Wall Street Journal estimated that more than 50% of American’s leases remained off-balance sheet due to the exclusion of variable leases. Should American and other companies be allowed to leave variable lease payments off-balance sheet? How did the decision to leave these payments off-balance sheet affect companies’ risk profiles and valuations?

  Keywords: Accounting; Financial Reporting; Financial Statements; Finance; Governance; Corporate Accountability; Corporate Governance; Governing Rules, Regulations, and Reforms; Governing and Advisory Boards; Leasing; Accounting Industry; Air Transportation Industry; North and Central America; United States;

  Citation:

  Heese, Jonas, Gerardo Pérez Cavazos, and Julia Kelley. "Accounting for Leases at American Airlines (A)." Harvard Business School Case 120-069, June 2020.  View Details

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• Case | HBS Case Collection | June 2020

  Accounting for Leases at American Airlines (B)

  Jonas Heese, Gerardo Pérez Cavazos and Julia Kelley

  This is a supplement to the Accounting for Leases at American Airlines (A) case. The (B) case describes American Airlines’ financial results for the first quarter of 2020, as well as the continuing effects of coronavirus on the airline industry.

  Keywords: Accounting; Financial Reporting; Financial Statements; Finance; Governance; Corporate Accountability; Corporate Governance; Governing Rules, Regulations, and Reforms; Governing and Advisory Boards; Health Pandemics; Accounting Industry; Air Transportation Industry; North and Central America; United States;

  Citation:

  Heese, Jonas, Gerardo Pérez Cavazos, and Julia Kelley. "Accounting for Leases at American Airlines (B)." Harvard Business School Case 120-113, June 2020.  View Details

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