Design and development resources were required to support efforts associated with new program launches for products including the wheel speed sensor, 4-wheel drive disconnect and seat track position sensor. Income Before Income Taxes. Provision for Income Taxes. Higher levels of generated operating cash flows in 2000 were used primarily to repay outstanding debt. The revolving facility permits the Company to borrow up to half its borrowings in specified foreign currencies.
Interest is payable monthly at an overnight money market borrowing rate.
These interest-rate swap agreements exchange variable interest rates on the senior secured credit facility for fixed interest rates. The Company does not use derivatives for speculative or profit-motivated purposes. By operating internationally, the Company is affected by the economic conditions of certain countries. Based on the current economic conditions in these countries, management believes they are not significantly exposed to adverse economic conditions. SFAS 133 establishes new accounting and reporting standards for derivatives and hedging activities, which requires that all derivative instruments be reported on the balance sheet at fair value and establishes criteria for designation and effectiveness of transactions entered into for hedging purposes.