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Corporate general and administrative expenses in 2001 decreased $1.7 million as compared to 2000 primarily due to consulting fees incurred in 2000 related to the Company’s extensive consumer market research project.
Net interest expense of $58.4 million, which is comprised of gross interest expense of $63.6 million, netted with interest income of $5.2 million, increased $2.1 million during fiscal year 2001 compared to the same period in 2000. Net interest expense of $56.3 million in fiscal year 2000 is comprised of gross interest expense of $61.4 million offset by $5.1 million of interest income. The increase resulted primarily from an increase in the average rates due to the higher interest costs associated with debt incurred in the Company’s recent refinancing transactions, which was substantially offset by a $114.5 million decrease in the average outstanding debt balance. Interest income resulted from cash and cash equivalent investments earning an average rate of 6.3 percent including funds in foreign jurisdictions earning 9.0 percent.
Other income, net, increased approximately $4.9 million during fiscal year 2001 compared to the same period in 2000 due principally to net gains on the sale of excess cemetery property.
In December 1998, the Company entered into an interest rate swap agreement on a notional amount of $200 million. Under the terms of the agreement, effective March 4, 1999, the Company pays a fixed rate of 4.915 percent and receives three-month LIBOR. The swap expires on March 4, 2002, at which time the $200 million becomes subject to short-term variable interest rates.
As of October 31, 2001, the Company’s outstanding debt totaled $693.5 million, including $2.6 million of debt associated with assets held for sale. Of the total amount outstanding, including the portion subject to the interest rate swap agreement, approximately 90 percent was fixed-rate debt, with the remaining 10 percent subject to short-term variable interest rates averaging approximately 5.6 percent.
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