Supercuts 2002 Annual Report Download - page 29

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Table of Contents
26
The table below presents information about the Company’s debt obligations, variable lease obligations and derivative financial
instruments that are sensitive to changes in interest rates. For fixed rate debt obligations, the table presents principal amounts and related
weighted-average interest rates by year of maturity. For variable rate obligations, the table presents principal amounts and the weighted-
average interest rates as of June 30, 2002. For variable lease obligations, the table presents the maximum potential obligation under the
residual value guarantee. For the Company’s derivative financial instruments, the table presents notional amounts and weighted-average
interest rates by expected (contractual) maturity dates. Notional amounts are used to calculate the contractual payments to be exchanged
under the contract.
Expected maturity date as of June 30,
Liabilities 2003 2004 2005 2006 2007
Thereafter
TOTAL
Fair Value
(US$ equivalent in thousands)
Long
-
term debt:
Fixed rate ($US)
$
6,173
$
19,540
$
14,123
$
12,549
$
22,037
$
164,596
$
239,018
$
241,340
Average interest rate
7.60
%
7.44
%
7.63
%
6.92
%
7.91
%
7.30
%
7.38
%
Fixed rate (GBP)
$
75
$
75
$
75
Average interest rate
5.23
%
5.23
%
Fixed rate (Euro)
$
973
$
973
$
973
Average interest rate
9.00
%
9.00
%
Variable rate ($US)
$
55,000
$
1,627
$
56,627
$
56,627
Average interest rate
3.63
%
4.71
%
3.66
%
Operating Lease:
Variable Rate ($US)
$
10,200
*
$
10,200
$
10,200
Average Interest Rate
4.71
%
4.71
%
Total liabilities
$
7,221
$
74,540
$
25,950
$
12,549
$
22,037
$
164,596
$
306,893
$
309,215
Interest rate derivatives
(US$ equivalent in thousands)
Pay variable/receive fixed ($US)
$
2,500
$
7,500
$
12,500
$
12,500
$
22,000
$
54,000
$
111,000
$
2,323
Average pay rate
4.66
%
6.42
%
7.23
%
7.60
%
7.68
%
7.23
%
7.25
%
Average receive rate
7.25
%
7.21
%
7.15
%
7.18
%
6.85
%
6.78
%
6.92
%
Pay fixed/receive variable ($US)
$
55,000
$
11,800
*
$
66,800
$
(2,804
)
Average pay rate
7.14
%
5.055
%
6.77
%
Average receive rate
2.50
%
4.13
%
2.79
%
*
Represents the maximum potential obligation of $10.2 million under a residual value guarantee, as discussed in Note 6 to the
Consolidated Financial Statements. The residual value guarantee is on a variable rate operating lease whose rental payments are based on
current interest rates and an $11.8 million notional amount. The Company has entered into a derivative financial instrument to hedge
$11.8 million of the variability of the remaining future lease payments.