PDF - Somero Enterprises

Section 4Financial Statements: Somero Enterprises, Inc. and Subsidiaries7 Debt Obligations continuedFuture Payments The future payments by year under the Company’s debt obligations are as follows at:31 DecemberUS$ 0002007 2,4002008 2,4002009 2,4002010 13,800Total payments 21,000Interest Interest expense on the credit facility during the period 11 August 2005 through 31 December 2005, and the year ended31 December 2006, was approximately US$457,000 and US$3,618,000, respectively, related to the debt obligation. Interest expense paid bythe Company’s UK subsidiary was approximately US$nil and US$13,000 for the period 11 August 2005 through 31 December 2005, and theyear ended 31 December 2006, respectively.8 Capital Lease ObligationsSummary The Company leases a building in Jaffrey, New Hampshire, which is owned by a former co-owner of the Somero Business.The lease has a condition in which the owner of the building can require the Company to purchase the building at fair value at the endof the lease. Accordingly, the lease requires treatment as a capital lease.At 31 December 2006, the gross amount of property and related accumulated amortisation recorded under the capital lease were as follows:2006US$ 000Building 657Less: accumulated depreciation (23)634Future Payments The future payments under the Company’s capital lease obligation are as follows at 31 December 2006:2007 6572008 –2009 –2010 –Thereafter –Net minimum lease payments 657US$ 000Interest Interest paid during the period 11 August 2005 through 31 December 2005, and the year ended 31 December 2006, wasapproximately US$40,000 and US$83,000, respectively, related to the capital lease obligation.On 10 January 2007, the Company acquired the building for approximately US$657,000.39Somero Enterprises, Inc.Annual Report and Accounts 2006