Financial statements sample-NOTES-LONG-TERM DEBT（长期负债） AND CAPITAL LEASES（融资租赁）1

（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 2003, OCLC issued $25,000,000 of Franklin County Revenue Bonds (“2003 bonds”). The proceeds（所获资金/收益） were used to refund the remaining portion of the 1993 Franklin County Revenue Bonds, and to improve real property（不动产）, acquire office systems, software, computers and other equipment, and bibliographic and other databases（图书目录数据库）. The bonds were issued at a premium of $1,223,000, which is being accreted（溢价摊销/摊提） over the life of the bonds using the effective interest method（实际利率法）.

Bond fund deposits（债券基金存款） for the 1998 serial bonds（系列债券） sufficient to cover the next principal payment（本金支付） will be made annually to the trustee（托管人）. Annual sinking fund（偿债基金） deposits for redemption of the principal balance of the 1998 term bonds（定期债券） commence October 1, 2013, in amounts ranging from $1,375,000 in 2013 to $1,575,000 in 2020. Interest on the 1998 bonds is payable semi-annually（每半年） to the trustee. The 1998 bonds are callable（随时偿还） at 101% of par（平价） if redeemed between October 2008 and September 2009, and at par beginning October 2009.

All bond issues are unsecured（无担保的）. The indenture agreement（合约/协议） and its supplements（附录/补充条款） restrict, among other things, the issuance of additional debt（新增债券发行） and the granting of security interests（债券利息给付/债券计息）.

Other Long Term Debt — On May 2, 2005, Strata Preservation N.V. entered into a subordinated loan（附属贷款） for cash flow purposes with its minority partner, Konkinklijke Bibliotheek, for 240,000 Euros ($324,900 and $307,100 outstanding at June 30, 2007 and 2006, respectively) with interest (rate of 7%) payable annually. The principal（本金） is payable within 15 days after May 2, 2008.

On October 10, 2005, OCLC PICA B.V. entered into a bank loan（银行贷款） for the purposes of（为了） financing the purchase（购并） of Fretwell-Downing Group Ltd. and subsidiaries (“FDI”). The 4,000,000 Euro loan has an effective interest rate（实际利率/有效利率） equal to 1.5% above the 3 month Euribor rate（欧元银行同业拆放利率） (total of 5.675% and 4.316% at June 30, 2007 and 2006, respectively). The loan is due quarterly in equal principal installments（等额本金分期偿付） of 200,000 Euros (plus interest) starting January 1, 2006, and continuing through（直至） October 1, 2010, and has a balance outstanding（结余） of 2,800,000 Euros ($3,789,800) and 3,600,000 Euros ($4,605,300) at June 30, 2007 and 2006, respectively. The bank loan is secured（担保） by three million Euros of Corporate Bonds. Concurrently（同时）, OCLC PICA B.V. entered into a derivative financial instrument（金融衍生工具） to cap（上限/限制） the variable interest rate of the loan to a fixed rate of 5%. The maturity, payment dates, and other fundamental terms match（一致） those of the loan. The derivative does not qualify for（不适合） hedge accounting（对冲会计法） and, therefore, changes in fair value are reported in income. The derivative had a total positive fair value（正公允价值） of 57,654 Euro ($78,100) and 35,100 Euro ($44,800) at June 30, 2007 and 2006, respectively.