Cleveland Clinic Health System Obligated Group - FMSbonds.com

Cleveland Clinic Health SystemNotes to Consolidated Financial Statements (continued)9. Short-Term Borrowings, Notes Payable and Capital LeasesThe System has a $100.0 million Revolving Credit Facility (the Facility) with several banks thatbears interest at various rates and expires on November 28, 2008. No amounts were outstandingunder the Facility at December 31, 2007 or 2006.Notes payable and capital leases at December 31, 2007 and 2006 consists of the following (inthousands):2007 2006Installments and mortgage notes with interest ratesranging from 5.00% to 8.75% $ 32,180 $ 33,971Capital leases for facilities and equipment 19,027 21,698City of Lakewood lease 13,005 13,29764,212 68,966Less current portion (11,951) (6,195)Total note payables and capital leases $ 52,261 $ 62,771Maturities of the note payables for the five years subsequent to December 31, 2007, are asfollows (in thousands): 2008 – $8,755; 2009 – $5,945; 2010 – $4,491; 2011 – $923; 2012 –$983; and thereafter $11,084.Future minimum capital lease payments, including interest of $9.3 million, are as follows (inthousands): 2008 – $4,677; 2009 – $3,580; 2010 – $3,421; 2011 – $3,421; 2012 – $3,421; andthereafter – $9,794. Assets acquired through capital lease arrangements are excluded from theconsolidated statements of cash flows.The City of Lakewood, Ohio (the City) leases real and personal property to Lakewood Hospital(Lakewood) for the purpose of operating Lakewood. In connection with executing an AmendedLease with the City, Lakewood has agreed to make additional payments to the City. Theadditional payments commenced in 1997 and range in annual amounts from $1.0 million to $1.2million through 2026. The net present value of the additional payments is $13.0 million and$13.3 million at December 31, 2007 and 2006, respectively (discounted at an interest rate of6%). In connection with the Amended Lease, Lakewood has $120.1 million of net assets,included in the System’s unrestricted net assets at December 31, 2007, available for Lakewood’suse, but unavailable to other members of the System.23