Southwest Airlines 1995 Annual Report Download - page 33

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33
5. ACCRUED LIABILITIES
(in thousands) 1995 1994
Aircraft rentals $105,534 $67,407
Employee profitsharing and
savings plans (Note 10) 55,253 53,512
Vacation pay 38,777 31,801
Aircraft maintenance costs 31,463 37,330
Taxes, other than income 22,478 25,001
Interest 22,326 20,270
Other 72,645 53,658
$348,476 $288,979
6. LONG-TERM DEBT
(in thousands) 1995 1994
9 1/4% Notes due 1998 $ 100,000 $ 100,000
9.4% Notes due 2001 100,000 100,000
8 3/4% Notes due 2003 100,000 100,000
7 7/8% Notes due 2007 100,000 100,000
8% Notes due 2005 100,000 -
Capital leases (Note 7) 177,696 195,756
Other 430 435
678,126 596,191
Less current maturities 13,516 9,553
Less debt discount 3,600 3,567
$ 661,010 $ 583,071
On March 7, 1995, the Company issued $100 million of senior unsecured 8% Notes due March
1, 2005. Interest is payable semi-annually on March 1 and September 1. The Notes are not
redeemable prior to maturity.
On September 9, 1992, the Company issued $100 million of senior unsecured 7 7/8% Notes due
September 1, 2007. Interest is payable semi-annually on March 1 and September 1. The Notes
are not redeemable prior to maturity.
During 1991, the Company issued $100 million of senior unsecured 9 1/4% Notes, $100 million
of senior unsecured 9.4% Notes, and $100 million of senior unsecured 8 3/4% Notes due
February 15, 1998, July 1, 2001, and October 15, 2003, respectively. Interest on the Notes is
payable semi-annually. The Notes are not redeemable by the Company prior to maturity.
The fair values, based on quoted market prices, of these Notes at December 31, 1995, were as
follows (in thousands):
9 1/4% Notes due 1998 $106,720
9.4% Notes due 2001 114,610
8 3/4% Notes due 2003 114,350
7 7/8% Notes due 2007 110,530
8% Notes due 2005 110,310
In addition to the credit facilities described above, Southwest has an unsecured Bank Credit
Agreement with a group of banks that permits Southwest to borrow through December 14, 1999
on a revolving credit basis up to $460 million. Interest rates on borrowings under the Credit
Agreement can be, at the option of Southwest, the agent bank’s prime rate, 0.275% over LIBOR,
or 0.50% over domestic certificate of deposit rates. The commitment fee is 0.125% per annum.
There were no outstanding borrowings under this agreement at December 31, 1995 or 1994.
7. LEASES