AutoNation 2006 Annual Report Download - page 37

Table of Contents
various financing agreements. At December 31, 2006, unused availability under our revolving credit facility totaled $412.7 million.
We have not declared or paid any cash dividends on our common stock during our three most recent fiscal years. We do not
anticipate paying cash dividends in the foreseeable future. The indenture for our new senior notes restricts our ability to declare cash
dividends.
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The following table summarizes our payment obligations under certain contracts at December 31, 2006 (in millions):
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 
    
Total vehicle floorplan payable (Note 3)* $ 2,265.0 $2,265.0 $ — $ — $ —
Notes payable and long-term debt (Note 7)* 1,571.5 13.6 125.9 832.0 600.0
Interest payments** 162.7 22.6 44.0 42.7 53.4
Operating lease commitments (Note 8)* 504.7 60.7 102.4 78.1 263.5
Acquisition purchase price commitments 4.2 4.2 — — —
Purchase obligations 148.3 69.1 44.3 34.8 .1
Total $ 4,656.4 $ 2,435.2 $ 316.6 $ 987.6 $ 917.0
* See Notes to Consolidated Financial Statements.
** Represents scheduled interest payments on fixed rate senior unsecured notes. Estimates of future interest payments for vehicle
floorplan payables and other variable rate debt are excluded.
In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as
financial guarantees of our performance. At December 31, 2006, surety bonds, letters of credit and cash deposits totaled $124.9 million,
including $92.3 million letters of credit. We do not currently provide cash collateral for outstanding letters of credit. We have negotiated a
letter of credit sub-limit as part of our revolving credit facility. The amount available to be borrowed under this revolving credit facility is
reduced on a dollar-for-dollar basis by the cumulative amount of any outstanding letters of credit.
As further discussed under the heading “Provision for Income Taxes,” there are various tax matters where the ultimate resolution
may result in us owing additional tax payments.
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We have no off balance sheet arrangements as of December 31, 2006 and 2005.
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Our operations generally experience higher volumes of vehicle sales and service in the second and third quarters of each year due in
part to consumer buying trends and the introduction of new vehicle models. Also, demand for vehicles and light trucks is generally lower
during the winter months than in other seasons, particularly in regions of the United States where stores may be subject to adverse winter
conditions. Accordingly, we expect our revenue and operating results to be generally lower in our first and fourth quarters as compared to
our second and third quarters. However, revenue may be impacted significantly from quarter to quarter by actual or threatened severe
weather events, and by other factors unrelated to weather conditions, such as changing economic conditions and automotive manufacturer
incentives programs.
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