Southwest Airlines 1999 Annual Report Download - page 35

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due as follows: $687.9 million in 2000, $520.1 million in 2001, $515.8 million in 2002,
$152.8 million in 2003, and $89.1 million in 2004.
4. ACCRUED LIABILITIES
(In thousands)1999 1998
Employee profitsharing and savings plans (Note 10) $138,566 $123,195
Aircraft rentals 131,219 121,868
Vacation pay 62,937 54,781
Other 202,302 177,604
$535,024 $477,448
5. LONG-TERM DEBT
(In thousands)1999 1998
9.4% Notes due 2001 $100,000 $100,000
8 3/4% Notes due 2003 100,000 100,000
Aircraft Secured Notes due 2004 200,000 -
8% Notes due 2005 100,000 100,000
7 7/8% Notes due 2007 100,000 100,000
French Credit Agreements 55,844 -
7 3/8% Debentures due 2027 100,000 100,000
Capital leases (Note 6) 123,834 133,190
Other 1,886 4,481
881,564 637,671
Less current maturities 7,873 11,996
Less debt discount 1,974 2,366
$871,717 $623,309
In fourth quarter 1999, the Company issued $200 million of floating rate Aircraft
Secured Notes, due 2004. The Notes are funded by a bank through a commercial paper
conduit program and are secured by eight aircraft. Interest rates on the Notes are based on
the conduit’s actual commercial paper rate, plus fees, for each period and are expected to
average approximately LIBOR plus 36 basic points, over the term of the Notes. Interest is
payable monthly and the Company can prepay the Notes in whole or in part prior to
maturity.
Also in fourth quarter 1999, the Company entered into two identical 13-year floating
rate financing arrangements, whereby it effectively borrowed a total of $56 million from
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