Thrifty Car Rental 2006 Annual Report Download - page 41

Contractual Obligations and Commitments
The Company has various contractual commitments primarily related to asset backed notes, commercial
paper and short-term borrowings outstanding for vehicle purchases, airport concession fee and operating
lease commitments related to airport and other facilities, technology contracts, and vehicle purchases.
The Company expects to fund these commitments with cash generated from operations, sales proceeds
from disposal of used vehicles, the renewal of its 364-day bank facilities and continuation of asset backed
note issuances as existing notes mature. The following table provides details regarding the Company’s
contractual cash obligations and other commercial commitments subsequent to December 31, 2006:
Beyond
2007 2008-2009 2010-2011 2011 Total
Contractual cash obligations:
Asset backed notes (1) 386,634$ 606,751$ 1,043,002$ -$ 2,036,387$
Commercial paper outstanding (1) 189,902 - - - 189,902
Other short-term borrowings (1) 798,248 - - - 798,248
Subtotal - Vehicle debt and obligations 1,374,784 606,751 1,043,002 - 3,024,537
Operating lease commitments 42,983 52,937 28,172 89,580 213,672
Airport concession fee commitments 70,260 91,855 58,290 104,617 325,022
Vehicle purchase commitments 2,459,346 - - - 2,459,346
Other commitments 42,196 71,694 56,057 - 169,947
Total contractual cash obligations 3,989,569$ 823,237$ 1,185,521$ 194,197$ 6,192,524$
Other commercial commitments:
Letters of credit 126,081$ 41,477$ -$ -$ 167,558$
Payments due or commitment expiration by period
(in thousands)
(1) Further discussion of asset backed notes, commercial paper outstanding and short-term borrowings
is below and in Note 10 of Notes to Consolidated Financial Statements. Amounts include both principal
and interest payments. Amounts exclude related discounts, where applicable.
Asset Backed Notes
The asset backed note program is comprised of $1.81 billion in asset backed notes with maturities
ranging from 2007 to 2011. Borrowings under the asset backed notes are secured by eligible vehicle
collateral and bear interest at fixed rates ranging from 3.64% to 5.27% including certain floating rate notes
swapped to fixed rates. Proceeds from the asset backed notes that are temporarily not utilized for
financing vehicles and certain related receivables are maintained in restricted cash and investment
accounts, which were approximately $359.6 million at December 31, 2006.
On March 28, 2006, RCFC issued $600 million of five-year asset backed notes (the “2006 Series Notes”)
to replace maturing asset backed notes and provide for growth in the Company’s fleet. The 2006 Series
Notes consist of $600 million floating rate notes at LIBOR plus 0.18%. In conjunction with the issuance of
the 2006 Series Notes, the Company also entered into interest rate swap agreements to convert this
floating rate debt to fixed rate debt at a 5.27% interest rate.
Conduit Facility
On March 28, 2006, the Company renewed its Variable Funding Note Purchase Facility (the “Conduit
Facility”) for another 364-day period with a capacity of $425 million. Proceeds are used for financing of
vehicle purchases and for a periodic refinancing of asset backed notes. The Conduit Facility generally
bears interest at market-based commercial paper rates and is renewed annually. In March 2007, the
Conduit Facility is expected to be extended for a 90-day period at existing levels.
Commercial Paper Program and Liquidity Facility
At December 31, 2006, the Company’s commercial paper program (the “Commercial Paper Program”)
had a maximum capacity of $649 million supported by a $560 million, 364-day liquidity facility (the
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