Cash America 2001 Annual Report Download - page 30

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Notes to Consolidated Financial Statements — Continued
7. Property and Equipment
Major classifications of property and equipment for continuing operations at
December 31, 2001 and 2000 were as follows (in thousands):
2001 2000
Land $ 2,611 $ 2,605
Buildings and leasehold improvements 83,497 60,353
Furniture, fixtures and equipment 47,633 45,128
Computer software 18,493 17,772
Total 152,234 125,858
Less – accumulated depreciation 83,784 76,261
Property and equipment – net $ 68,450 $ 49,597
On March 28, 2000, a tornado severely damaged the Company’s corporate
headquarters in Fort Worth, Texas. Headquarters operations were relocated to
temporary facilities. The Company’s operating locations were not affected. The
Company owns the building and restoration began in the fourth quarter of 2000
and was completed in the fourth quarter of 2001. The Company’s insurance cov-
erage provided proceeds for repairs to the building; replacement of furniture,
improvements, and equipment; recovery of losses resulting from business inter-
ruption; and recovery of other general expenses. The Company recognized a
gain of $9,729,000 from the settlement of the insurance claims. Income tax
expense of $3,405,000 related to the gain is included in the provision for income
taxes. At December 31, 2000, $790,000 of insurance claim proceeds receivable
is included in “Other receivables and prepaid expenses” in the accompanying
consolidated balance sheet.
8. Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses at December 31, 2001 and 2000 were as
follows (in thousands):
2001 2000
Trade accounts payable $ 12,512 $ 7,435
Accrued taxes, other than income taxes 4,471 3,988
Accrued payroll and fringe benefits 7,248 6,901
Accrued interest payable 2,096 1,517
Other accrued liabilities 1,612 2,133
Total $ 27,939 $ 21,974
9. Long-term Debt
The Company’s long-term debt instruments and balances outstanding at
December 31, 2001 and 2000 were as follows (in thousands):
2001 2000
U.S. Line of Credit up to $150,000
due June 30, 2003 $ 100,000 $ 84,000
Multi-currency Line of Credit up to £20,000
due April 30, 2003 12,562 —
U.K. Line of Credit up to £15,000
due April 30, 2002 —7,876
Swedish Line of Credit up to
SEK 185,000 —9,142
Swedish Line of Credit up to
SEK 30,000 —409
8.33% senior unsecured notes due 2003 8,571 12,857
8.14% senior unsecured notes due 2007 20,000 20,000
7.10% senior unsecured notes due 2008 30,000 30,000
Capital lease obligations payable 349 5,780
6.25% subordinated unsecured notes due 2004 300 400
171,782 170,464
Less current portion 9,020 5,853
Total long-term debt $ 162,762 $ 164,611
Interest on the U.S. Line of Credit is charged, at the Company’s option, at
either a margin over LIBOR (2.25% at December 31, 2001) or at the Agent’s base
rate. The Company pays a fee of .25% per annum on the unused portion. The
Company has an interest rate cap agreement totaling $20,000,000 that expires in
January 2003 and limits the maximum LIBOR rate to 7% and an interest rate cap
agreement totaling $30,000,000 that expires in February 2004 and limits the
maximum LIBOR rate to 5.5%. The weighted average interest rate on the line of
credit at December 31, 2001, is 4.46%.
In 2001, the Company entered into a £20,000,000 Multi-currency Line of
Credit (approximately $29,120,000 as of December 31, 2001) with a United
Kingdom commercial bank, which refinanced the previous £15,000,000 U.K.
and SEK 185,000,000 lines of credit. The Company’s foreign subsidiaries are
co-borrowers on this line of credit. Funds up to £20,000,000 may be drawn in
pounds sterling, bearing interest at the Bank’s cost of funds plus a margin of
60 basis points for borrowings less than 14 days, and a margin of 55 basis
points for borrowings of 14 days or more. Funds up to the equivalent of
£10,000,000 may be drawn in Swedish kronor, bearing interest at the Bank’s
cost of funds plus a margin of 65 basis points for all borrowings. The combined
pound sterling and Swedish kronor borrowings may not exceed the equivalent
of £20,000,000. The Company pays a fee of .25% per annum on the unused
portion of this line of credit. The weighted average interest rates on the pound
sterling and Swedish kronor borrowings at December 31, 2001 were 5.48% and
4.54%, respectively. As of December 31, 2001, amounts outstanding under the
line of credit were £2,675,000 (approximately $3,895,000) and SEK 90,500,000
(approximately $8,667,000).