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The company leases certain terminals and equipment. At December 31, 1999, the company was committed under noncancelable lease agreements requiring minimum annual rentals payable as follows: 2000 - $29.6 million, 2001 - $21.7 million, 2002 - $15.0 million, 2003 - $7.6 million, 2004 - $4.8 million and thereafter, $10.9 million. Projected 2000 net capital expenditures are $177 million, of which $53 million was committed at December 31, 1999. Various claims and legal actions are pending against the company. It is the opinion of management that these matters will have no significant impact upon the financial position or results of operations of the company. The company’s Board of Directors authorized the repur-chase of shares of the company’s outstanding common stock with an aggregate purchase price of up to $25 million, the third $25 million share repurchase authorized since December 1997.As of December 31, 1999 the company repurchased 3.8 million shares under these programs and had $4.6 million remaining in stock buy back authorization. Due to the acquisition of Jevic and other internal investment opportunities, the company has suspended this program. |
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Report of Independent Public Accountants |
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We have audited the accompanying consolidated balance sheets of Yellow Corporation (a Delaware corporation) and Subsidiaries as of December 31, 1999 and 1998, and the related consolidated statements of operations, cash flows and shareholders’ equity for each of the three years in the period ended December 31, 1999. These financial statements are the responsibility of the company’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Yellow Corporation and Subsidiaries as of December 31, 1999 and 1998, and the results of their operations and their cash flows for each of the three years in the period ended December 31, 1999, in conformity with generally accepted accounting principles. ARTHUR ANDERSEN
LLP |
