FY 2005 - University of Missouri System

N otes to Combined Financial StatementsF o r t h e y e a r s e n d e d J u n e 3 0 , 2 0 0 5 a n d 2 0 0 4As of June 30, 2005, the total of principal and interest (in thousands of dollars) due on bonds during the next five yearsand in subsequent five-year periods is as follows:Year Ending June 30 Principal Interest2006 $ 870 $ 2,0242007 900 1,9922008 935 1,9572009 970 1,9172010 1,010 1,8742011-2015 5,795 8,6082016-2020 7,375 6,9712021-2025 9,520 4,7662026-2029 12,390 1,803$ 39,765 $ 31,91211. SHORT-TERM BORROWINGSDuring the year ended June 30, 2005, the University sold $168,000,000 of capital project notes at an effective interestrate of 1.5%. The maximum amount of notes outstanding during the year was $168,000,000 and all were repaid in fullby June 30, 2005. Proceeds from the issuance of the capital project notes were used to fund various constructionprojects. Capital project note activity for the year ended June 30, 2005 is as follows (in thousands of dollars):Fiscal YearBeginningof Year Issuance PaymentsEnd ofYearCapital Project Notes, Series FY 2004-2005 2005 $ - $ 168,000 $ (168,000) $ -There were no capital project notes sold by the University during the year ended June 30, 2004.12. LEASE OBLIGATIONS AND COMMITMENTSThe University leases various facilities and equipment through operating and capital leases. Facilities under capitalizedleases are recorded at the present value of future minimum lease payments.Capital lease obligations activity for the years ended June 30, 2005 and 2004, is as follows (in thousands of dollars):FiscalYearBeginningof Year Additions PaymentsEnd ofYearCurrentPortion2005 $ 10,532 $ - $ (361) $ 10,171 $ 3922004 10,864 - (332) 10,532 361The future minimum payments on all significant leases with initial or remaining terms of one year or more at June 30,2005, are as follows (in thousands of dollars):Fiscal Year Capital Operating2006 $ 1,374 $ 3,4862007 1,374 7852008 1,374 4562009 1,374 4562010 1,374 4422011-2015 6,871 1,7592016-2020 5,840 143Total Future Minimum Payments 19,581 $ 7,527Less: Amount Representing Interest 9,410Present Value of Future Minimum Lease Payments $ 10,171Total rental expenditures for operating leases for the years ended June 30, 2005 and 2004, were $14,121,000 and$12,087,000, respectively.422 0 0 5 F i n a n c i a l R e p o r t : U n i v e r s i t y o f M i s s o u r ia c o m p o n e n t u n i t o f t h e S t a t e o f M i s s o u r i