Financial statements sample-NOTES-LONG-TERM DEBT（长期负债） AND CAPITAL LEASES（融资租赁）2

（Edited by freelance Chinese translator li – English to Chinese translation or Chinese to English translation services- financial statement translation）

LONG-TERM DEBT（长期负债） AND CAPITAL LEASES（融资租赁）

In April 2002, FDI entered into（需要支付） a note payable bearing interest（带息应付票据） at an imputed rate（估算利率） of 4% to a former majority shareholder of FDI for 36,100 Euros ($46,300 at June 30, 2006). The loan was paid in April 2007.

Capitalized Leases（租赁资本化） — OCLC leases office and computer equipment and autos with an option（选择权） to purchase the equipment at a nominal cost（名义成本） at the termination of the lease. The outstanding balance was $1,201,100 and $144,800 at June 30, 2007 and 2006, respectively.

On October 26, 2001, the Corporation entered into a seven-year tax-exempt（免税） lease agreement through Franklin County, Ohio（俄亥俄州）, for $16,000,000 with an effective interest rate of 4.11%. The lease is due（到期） monthly in equal principal installments of $190,500 (plus interest) and has a balance outstanding of $3,238,100 and $5,523,800 at June 30, 2007 and 2006, respectively. The proceeds（所获资金） were used to finance the acquisition and installation of office systems and equipment, computers, servers, related peripheral equipment（外围设备） and software, and bibliographic and other information databases.

The Corporation also simultaneously entered into a $16,000,000 interest rate swap agreement（利率掉期协议） to manage its exposure（敞口风险） to the variability of cash flows primarily related to the interest rate changes on its borrowing costs（借款成本）. OCLC follows the provisions of SFAS No. 133, Accounting for Derivative Instruments and Hedging Activities（金融衍生工具和对冲活动会计）, to establish accounting and reporting requirements（核算与报告规则） for derivative instruments. The agreement is designated as a cash flow hedge（现金流量对冲） at inception（开始/最初） with a remaining maturity of seven years. The Corporation adjusts the swap to market value through equity as the contract is effective in offsetting（抵消） the interest rate exposure of the forecasted interest rate payments hedged. Hedging effectiveness（对冲效果） is assessed periodically by comparing the fair market value of the agreement to similar agreements maintained by the lending facility（借贷工具）. The swap agreement had a total positive fair net value（正公允净值） of $11,000 and $39,100 at June 30, 2007 and 2006, respectively, which is reflected as a long-term asset and change to equity（权益调整项）. As the interest rate protection agreement is with a major bank, the Corporation does not expect to be subject to（经受） credit risk exposures（信用敞口风险）.

On June 14, 2004, the Corporation entered into a seven-year tax-exempt lease agreement through Franklin County, Ohio, for $14,000,000 with an effective interest rate equal to the LIBOR Rate（伦敦银行同业拆息率） plus 1.75%, multiplied（乘） by 0.65 (total of 4.60% and 4.61% at June 30, 2007 and 2006, respectively). The lease is due monthly in equal principal installments of $233,300 (plus interest) starting July 2006 and has a balance outstanding of $11,200,000 and $14,000,000 at June 30, 2007 and 2006, respectively. Interest only is due July 1, 2004 to July 1, 2006. The proceeds were used to finance the acquisition and installation of office systems and equipment, computers, servers, related peripheral equipment and software, and bibliographic and other information databases.