Chesapeake Energy 1996 Annual Report Download - page 44

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CHESAPEAKE ENERGY CORPORATION
SUPPLEMENTAL SCHEDULE OF NON-CASH INVESTING
AND FINANCING ACTIVITIES:
The company has a financing arrangement with a ven-
dor to supply certain oil and gas equipment inventory.
The total amounts owed at June 30, 1996, 1995 and
l994were $3,156,000, $6,513,000 and $5,952,000, re-
spectively. No cash consideration is exchanged for inven-
tory under this financing arrangement until actual draws
on the inventory are made.
In fiscal 1996 and 1995, the company recognized in-
come tax benefits of $7,950,000 and $1,229,000, respec-
tively, related to the disposition of stock options by di-
rectors and employees of the company. The tax benefits
were recorded as an adjustment to deferred income taxes
and paid-in capital.
Proceeds from the issuances of $90 million of 10.5%
The accompanying notes are an integral part of these consolidated financial statements.
FINANCIAE INFORMATION
SeniorNotes in May 1995 and $120 million of 9.125%
Senior Notes in April 1996 are net of $2.7 million and
$3.9 million, respectively, in offering fees and expenses
which were deducted from the actual cash received.
On March 31, 1994, the company issued 8,000 units
(see Note 2) to Trust Company of the West ("TCW")
primarily in consideration for the surrender of 576,923
shares of the company's 9% convertible preferred stock,
including its rights to dividends, warrants to purchase
Common Stock and an overriding royalty interest.
In February 1994, pending litigation was settled pur-
suant to an agreement requiring COl to pay $1.25 mil-
lion, of which $250,000 plus interest was paid in July
1994, and the balance of which was paid in June 1995.