AutoNation 2000 Annual Report Download - page 54

Notes payable and long-term debt at December 31 is as follows:
2000 1999
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Vehicle inventory credit facilities;
secured by the Company's vehicle inventory;
interest payable at LIBOR based rates;
interest rates of 7.7% and 6.6% at
December 31, 2000 and 1999, respectively ......... $ 2,416.7 $ 2,210.6
$1.5 billion unsecured revolving credit facilities;
interest payable using LIBOR based rates;
interest rates of 7.6% and 6.6% at
December 31, 2000 and 1999, respectively ......... 615.0 669.0
Other debt; secured by real property,
equipment and other assets; interest ranging
from 7.5% to 8.0%; maturing through 2010 ......... 242.2 174.8
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3,273.9 3,054.4
Less: current maturities ......................... (2,423.5) (2,218.3)
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$ 850.4 $ 836.1
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As of December 31, 2000, the Company had $615.0 million drawn under two
unsecured revolving credit facilities totaling $1.5 billion. One facility
provides $1.0 billion of financing under a multi-year structure and matures
April 2002. The other facility, a $500.0 million 364-day facility, was amended
prior to its scheduled maturity in March 2001 to provide $250.0 million of
borrowing capacity until the earlier of September 30, 2001 or the early renewal
of the Company's multi-year $1.0 billion facility. The Company's revolving
credit facilities require, among other items, that the Company maintain certain
financial ratios and comply with certain financial covenants. The Company was
in compliance with these ratios and covenants at December 31, 2000 and 1999.
The Company finances vehicle inventory through secured financings,
primarily floorplan facilitities, with manufacturers' captive finance
subsidiaries, as well as independent financial institutions, and, until
recently, a bank-sponsored commercial paper conduit facility that matured
January 19, 2001, and was not renewed. As of December 31, 2000, committed
capacity of the facilities was approximately $3.5 billion.
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AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)
3. NOTES PAYABLE AND LONG-TERM DEBT -- (Continued)
The Company is a lessee under a $500.0 million lease facility that was
established primarily to acquire and develop the Company's former megastore
properties. As originally structured, the facility had been accounted for as an
operating lease and included residual value guarantees. In 1999, certain
properties under the facility were reflected as capital leases. In connection
with the Company's 1999 restructuring activities described in Note 10,
Restructuring and Impairment Charges (Recoveries), Net, the Company accrued an
estimate of the liability under the residual value guarantees totaling
approximately $103.3 million as of December 31, 1999. At December 31, 1999,
$469.7 million was funded under this facility of which $152.5 million was
accounted for as capital leases and the remaining $317.2 million was accounted
for as operating leases. In September 2000, the Company funded its remaining