Southwest Airlines 1996 Annual Report Download - page 39

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39
The fair values, based on quoted market prices, of these Notes at December 31, 1996,
were as follows (in thousands):
9 1/4% Notes due 1998 $ 103,520
9.4% Notes due 2001 110,670
8 3/4% Notes due 2003 109,820
7 7/8% Notes due 2007 104,800
8% Notes due 2005 106,190
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, 1996 or
1995.
5. LEASES
Total rental expense for operating leases charged to operations in 1996, 1995, and 1994
was $280,389,000, $247,033,000, and $198,987,000, respectively. The majority of the
Company’s terminal operations space, as well as 106 aircraft, were under operating leases at
December 31, 1996. The amounts applicable to capital leases included in property and equipment
were (in thousands):
1996 1995
Flight equipment $226,677 $223,844
Less accumulated amortization 111,815 101,641
$114,862 $122,203