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## Not P 

## LINE OF CREDIT COMMITMENTS 

As of December 31, 2002 the Company had outstanding lines of credit of approximately $165.5 billion committed to its customers. Of that total commitment, approximately $105.8 billion was unused. While this amount represented the total available lines of credit to customers, the Company has not experienced, and does not anticipate, that all of its customers will exercise their entire available line at any given point in time. The Company generally has the right to increase, reduce, cancel, alter or amend the terms of these available lines of credit at any time. 

## LEASE COMMITMENTS 

Certain premises and equipment have been leased under agreements that expire at various dates through 2012, without taking into consideration available renewal options. Many of these leases provide for payment by the lessee of property taxes, insurance premiums, cost of maintenance and other costs. In some cases, rentals are subject to increase in relation to a cost of living index. Total rent expenses amounted to approximately $63.2 million, $64.7 million and $66.1 million for the years ended December 31, 2002, 2001 and 2000, respectively. 

Future minimum rental commitments as of December 31, 2002, for all non- cancelable operating leases with initial or remaining terms of one year or more are as follows: 

<img src='content_image/6095.jpg'>

## GUARANTEES 

## Residual Value Guarantees 

The Company has entered into synthetic lease transactions to finance several facilities. A synthetic lease structure typically involves establishing a special purpose vehicle (“SPV”) that owns the properties to be leased. The SPV is funded and its equity is held by outside investors, and as a result, neither the debt of nor the properties owned by the SPV have been included in the accompanying consolidated financial statements. These transactions, as described below, are accounted for as operating leases in accordance with SFAS No. 13, Accounting for Leases. The Company has entered into maximum residual value guarantee agreements with the lessors of the 

## Commitments, Contingencies and Guarantees 

properties (the SPVs established in the lease structures), whereby the Company guarantees certain residual amounts to the lessors in the event of a sale of the property or expiration of the lease. The amount of the deficiency is recognized as rent expense on a straight-line basis over the remaining term of the lease. The accrual for a deficiency is required regardless of whether the Company expects to exercise a purchase option or renewal option at the end of the lease term. 

In December 2000, the Company entered into a 10-year agreement for the lease of a headquarters building being constructed in McLean, Virginia. The agreement calls for monthly rent to commence upon completion, which is expected to occur in the first quarter of 2003, and is based on LIBOR rates applied to the cost of the buildings funded. If, at the end of the lease term, the Company does not purchase the property, the Company guarantees a maximum residual value of up to $114.8 million representing approximately 72% of the estimated $159.5 million cost of the buildings in the lease agreement. This agreement, made with a multi-purpose entity that is a wholly-owned subsidiary of one of the Company’s lenders, provides that in the event of a sale of the property, the Company’s obligation would be equal to the sum of all amounts owed by the Company under a note issuance made in connection with the lease inception. As of December 31, 2002, the estimated cost of the building provided a reasonable approximation of the fair value, and thus no deficiency existed and no liability related to the maximum residual value guarantee was recorded relative to this property. 

In 1999, the Company entered into two three-year agreements for the construction and subsequent lease of four facilities located in Tampa, Florida and Federal Way, Washington. The construction of all four of these facilities was completed during 2001. The total cost of the buildings was approximately $98.8 million. Monthly rent commenced upon completion of each of the buildings and is based on LIBOR rates applied to the cost of the facilities funded. The Company had one-year renewal options under the terms of each of the leases, which were exercised during 2002 to extend the life of the leases through September of 2003. If, at the end of the lease terms, the Company does not purchase all of the properties, the Company guarantees a maximum residual value to the lessor of up to $84.0 million representing approximately 85% of the cost of the buildings in the lease agreement. During the fourth quarter, the estimated fair value of the facilities fell to a level below the maximum residual value guaranteed resulting in a deficiency of $22.0 million. Correspondingly, the Company has recognized $11.2 million as additional rent expense related to the deficiency as of December 31, 2002. 

In 1998, the Company entered into a five-year lease of five facilities in Tampa, Florida and Richmond, Virginia. Monthly rent on the facilities is based on a fixed interest rate of 6.87% per annum applied to the cost of the buildings included in the lease of $86.8 million. The Company has two one- year renewal options under the terms of the lease, which have been exercised to extend the life of the lease through December of 2005. If, at the end of the lease term, the Company does not purchase all of the properties, the Company guarantees a maximum residual value to the lessor of up to $72.9 million representing approximately 84% of the costs of the buildings in the lease agreement. As of December 31, 2002, the estimated fair value of the facilities fell to a level below the maximum residual value guaranteed resulting in a deficiency of $13.0 million. Correspondingly, the Company recognized $.4 million as additional rent expense related to the deficiency as of December 31, 2002. 

