Winn-Dixie Stores, Inc. and Subsidiaries - Page 13




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          value.  For 1994, the projection indicated that petitioner would            
          partially satisfy its premium and interest payment10 obligation             
          by borrowing $113,929,000 and withdrawing $1,649,000 from the net           
          cash value of the policy.  For 1995, the projection indicated               
          that a loan of $110,318,000 and a policy withdrawal of                      
          $14,731,000 would be used to pay a large portion of the premiums            
          of $113,852,000 and interest payment of $24,486,000.  Except for            
          the next 4 years, 1996 through 1999, the projection indicated               
          petitioner would finance a large portion of its premium and                 
          interest payments with policy loans.  For years 1996 through                
          1999, petitioner would generally finance its premium and interest           
          payments through policy withdrawals.  The policies' premiums were           
          to be completely paid by 2007; therefore, no premium payments               
          were projected for the years 2008 through 2052.  However, for               
          years 2008 through 2052, policy loans continued to be projected             
          in amounts that were approximately between 90 percent and 95                
          percent of the amount of the annual loan interest payments.                 
               The projection indicated that petitioner would sustain a               
          negative "pretax earnings effect" on the COLI plan for every year           
          the plan remained in effect.  Thus, the projection for the years            


               10The projection indicated that petitioner would actually              
          pay the estimated $11,902,000 of interest due on the 1993 loan of           
          $107,684,000 in 1994.  Interest accumulated on policy loans was             
          payable in arrears.                                                         






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