Atmos Energy 1998 Annual Report Download - page 39

shared among other potentially responsible parties. Therefore, the
costs of responding to these sites are not expected to materially
affect the results of operations, financial condition or cash flows
of the Company.
6LEASES
The Company has entered into noncancelable operating leases
for office and warehouse space used in its operations. The remain-
ing lease terms range from one to 20 years and generally provide
for the payment of taxes, insurance and maintenance by the lessee.
The Company has also entered into capital leases for division
offices and operating facilities. Net property, plant and equipment
included amounts for capital leases of $3.2million and $2.3million
at September 30,1998 and 1997, respectively.
The related future minimum lease payments at September
30,1998 were as follows:
Capital Operating
leases leases
(In thousands)
1999 $ 735 $ 9,633
2000 735 9,199
2001 735 8,810
2002 735 8,679
2003 735 8,172
Thereafter 4,119 52,564
Total minimum lease payments 7,794 $97,057
Less amount representing interest (4,215)
Present value of net minimum
lease payments $3,579
Consolidated lease and rental expense amounted to $9.2mil-
lion, $10.5million and $9.7million for fiscal 1998,1997 and 1996,
respectively. Rents for the regulated business are expensed and
the Company receives rate treatment as a cost of service on a
pay-as-you-go basis.
7LONG-TERM DEBT AND NOTES PAYABLE
Long-term debt at September 30,1998 and 1997 consisted
of the following:
1998 1997
(In thousands)
Unsecured 7.95% Senior Notes, due 2006,
payable in annual installments of $1,000 $ 8,000 $ 9,000
Unsecured 9.57% Senior Notes, due 2006,
payable in annual installments of $2,000 16,000 18,000
Unsecured 9.76% Senior Notes, due 2004,
payable in annual installments of $3,000 21,000 24,000
Unsecured 11.2% Senior Notes, due 2002,
payable in annual installments of $2,000 10,000 12,000
Unsecured 10% Notes, due 2011 2,303 2,303
Unsecured 6.09% Note, due November 1998 40,000 40,000
Unsecured 8.07% Senior Notes, due 2006,
payable in annual installments of
$4,000 beginning 2002 20,000 20,000
Unsecured 8.26% Senior Notes, due 2014,
payable in annual installments of
$1,818 beginning 2004 20,000 20,000
Unsecured 6.75% Debentures, due 2028 150,000 –
First Mortgage Bonds
Series J, 9.40% due 2021 17,000 17,000
Series N, 8.69% due 2000 3,000 5,000
Series P, 10.43% due 2017 25,000 25,000
Series Q, 9.75% due 2020 20,000 20,000
Series R, 11.32% due 2004 12,860 15,000
Series T, 9.32% due 2021 18,000 18,000
Series U, 8.77% due 2022 20,000 20,000
Series V, 7.50% due 2007 10,000 10,000
Medium term notes
Series A, 1995-1, 6.67%, due 2025 10,000 10,000
Series A, 1995-2, 6.27%, due 2010 10,000 10,000
Series A, 1995-3, 6.20%, due 2000 2,000 2,000
Rental property, propane and other term
notes due in installments through 2013 21,168 20,879
Total long-term debt 456,331 318,182
Less current maturities (57,783) (15,201)
$398,548 $302,981
In July 1998, the Company issued $150 million of 30-year
6.75% debentures. The proceeds were used to refinance short-
term borrowings.
Most of the Senior Notes and First Mortgage Bonds contain
provisions that allow the Company to prepay the outstanding
balance in whole at any time, subject to a prepayment premium.
The Senior Note agreements and First Mortgage Bond indentures
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ATMOS ENERGY CORPORATION