Interest Cost. If the revision of Regulation D announced by the Board of Governors of the Federal Reserve Board, or if the adoption of any Applicable Law or any change therein or any change in the interpretation or administration thereof by any Governmental Body, central bank, or comparable agency charged with the interpretation or administration thereof, or if compliance by U. S. Bank with any request or directive (whether or not having the force of Applicable Law) of any such Governmental Body, central bank, or comparable agency:
Interest Cost. The Borrower shall pay to the Bank from time to time such amounts as may be necessary to compensate the Bank for additional costs, as hereinafter defined, incurred by the Bank which are attributable to the Bank making or maintaining any LIBOR or Fixed Rate Loans hereunder or its obligation to make any such Loans hereunder, or any reduction in any amount receivable by the Bank under this Loan Agreement or the Notes in respect of any such Loans or such obligation (such increases in costs and reductions in amounts receivable being herein called "Additional Costs"), resulting from any change after the date of this Loan Agreement in Federal, state, municipal, or foreign laws, rules or regulations (including Regulation D), or the adoption or making after such date of any interpretations, directives, or requirements applying to a class of banks including the Bank of or under any Federal, state, municipal, or foreign laws, rules or regulations (whether or not having the force of law) by any court or governmental or monetary authority charged with the interpretation or administration thereof ("Regulatory Change"), which: (1) changes the basis of taxation of any amounts payable to the Bank under this Loan Agreement or the Notes in respect of any LIBOR or Fixed Rate Loans (other than taxes imposed on the overall net income of the Bank for any of such Loans); or (2) imposes or modifies any reserve, special deposit, or similar requirements relating to any extensions of credit or other assets of, or any deposits with or other liabilities of, the Bank (including any of such Loans or any deposits referred to in the definition of LIBOR Interest Rate; or (3) imposes any other condition affecting this Loan Agreement or the Notes (or any of such extensions of credit or liabilities). The Bank will notify the Borrower of any event occurring after the date of this Loan Agreement which will entitle the Bank to compensation pursuant to this Section as promptly as practicable after it obtains knowledge thereof and determines the amount of the Additional Costs payable. Determinations by the Bank for the purposes of this Section of the effect of any Regulatory Change on its costs of making or maintaining LIBOR or Fixed Rate Loans or on amounts receivable by it in respect of such Loans, and of the additional amounts required to compensate the Bank in respect of any Additional Costs, shall be conclusive, provided that such determinations are made on a reasonable basis.
Interest Cost. $-- 104 $-- 96 $-- 89 $104==== $ 96==== $ 89==== The funded status of the plans at May 31, 2000 and 1999 was as follows: CHANGE IN BENEFIT OBLIGATIONS: 2000 -------- 1999 -------- Benefit obligations at beginning of year.................. $ 1,463 $ 1,354 Interest cost............................................. 104 96 Benefits paid............................................. (153) (240) Unrecognized actuarial loss............................... (57) 108 Plan participants' contributions.......................... Benefit obligation at end of year........................... -- ------- 1,357 ------- 145 ------- 1,463 ------- CHANGE IN PLAN ASSETS: Fair value of plan assets at beginning of year............ -- -- Company contributions..................................... 153 95 Benefits paid............................................. (153) (240) Plan participants' contributions.......................... Fair value of plan assets at end of year.................... -- ------- -- ------- 145 ------- -- ------- Funded status............................................. $(1,357) $(1,463) Unrecognized actuarial (gains)losses...................... (3) 53 Unrecognized prior service cost........................... Accrued postretirement costs................................ 160 ------- $(1,200) ======= 210 ------- $(1,200) ======= 33 AAR CORP. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED) (IN THOUSANDS, EXCEPT PER SHARE AND PERCENTAGE DATA)
Interest Cost. 20 5.12 Fundings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20 5.13 Extensions, Renewals, and Modifications . . . . . . . . . . . . . . . . . . . 21 SECTION 6. CONDITIONS PRECEDENT FOR FUNDINGS UNDER THE LOANS . . . . . . . . . . . . . . 21 6.1
Interest Cost. The Company capitalizes interest and other borrowing costs incurred as a component of its property, plant, and equipment during the construction of the East Breaks pipeline and related facilities. The Company has capitalized $.6 million of initial debt issue costs and $2.6 million of interest costs incurred in 1999, which includes $.8 million of interest costs incurred by Deepwater and charged to Western Gulf. Income Taxes For tax filing purposes the Company has elected partnership status and therefore, income taxes are the responsibility of the Members and are not reflected in the financial statements of the Company. Statement of Cash Flows For purposes of these financial statements, the Company considers short-term investments purchased with an original maturity of three months or less to be cash. The Company had short-term investments in the amount of $5.1 million at December 31, 1999. The Company made cash payments for interest in the amount of $1.7 million for the year 1999. The accounts of HIOS as of January 1, 1999 have been eliminated from the statement of consolidated cash flows for 1999. Accounting Pronouncements The Financial Accounting Standards Board has issued Statement of Financial Accounting Standards No.133, "Accounting for Derivative Instruments and Hedging Activities," ("FAS 133"), as amended by Statement of Financial Accounting Standards No. 137, to be effective for all fiscal years beginning after June 15, 2000. FAS 133 requires that an entity recognize all derivatives as either assets or liabilities in the statement of financial position and measure those instruments at fair value. The accounting for changes in the fair value of a derivative will depend on the intended use of the derivative and the resulting designation. The Company is currently evaluating the impact, if any, of FAS 133.
