Thrifty Car Rental 2008 Annual Report Download - page 41

Obligations), the Company will pay down existing borrowings under these lines of credit over the normal
amortization period as vehicles financed are sold. The asset backed medium term note program is
comprised of $1.5 billion in asset backed medium term notes with maturities ranging from 2010 to 2012.
Cash used in financing activities was $182.0 million for 2007 primarily due to a decrease of $413.0 million
under the Conduit Facility, the maturity of asset backed medium term notes totaling $312.5 million, a net
decrease in the issuance of commercial paper totaling $153.1 million and share repurchases totaling
$71.5 million. Cash used in financing activities was partially offset by the issuance of $500 million in
asset backed medium term notes in May 2007, the proceeds of the $250 million Term Loan in June 2007,
and an increase of $42.1 million in other existing bank vehicle lines of credit.
Cash used in financing activities was $91.9 million for 2006 primarily due to a net decrease in the
issuance of commercial paper totaling $382.2 million, the maturity of asset backed notes totaling $295.8
million and share repurchases totaling $111.3 million, partially offset by the issuance of $600.0 million in
asset backed notes in March 2006, an increase of $50.0 million under the Conduit Facility, and an
increase of $47.4 million in other existing bank vehicle lines of credit.
Contractual Obligations and Commitments
The Company has various contractual commitments primarily related to asset backed medium term
notes, commercial paper and short-term borrowings outstanding for vehicle purchases, a non-vehicle
related term loan, airport concession fee and operating lease commitments related to airport and other
facilities, technology contracts, and vehicle purchases. The Company expects to fund these
commitments with cash generated from operations, sales proceeds from disposal of used vehicles and if
the Company regains access to the medium term note markets, continuation of asset backed note
issuances as existing medium term notes mature. The following table provides details regarding the
Company’s contractual cash obligations and other commercial commitments subsequent to December
31, 2008:
Beyond
2009 2010-2011 2012-2013 2013 Total
Contractual cash obligations:
Asset backed medium term notes (1) 76,248$ 1,094,578$ 509,312$ -$ 1,680,138$
Liquidity facility outstanding (1) (3) 281,331 - - - 281,331
Other short-term borrowings (1) (4) 543,950 3,409 456 - 547,815
Subtotal - Vehicle debt and obligations 901,529 1,097,987 509,768 - 2,509,284
Term Loan (2) 5,089 13,940 17,157 182,458 218,644
Subtotal - Non-vehicle debt 5,089 13,940 17,157 182,458 218,644
Total debt and other obligations 906,618 1,111,927 526,925 182,458 2,727,928
Operating lease commitments 57,010 79,718 53,360 56,091 246,179
Airport concession fee commitments 75,153 111,172 84,771 85,437 356,533
Vehicle purchase commitments 68,089 - - - 68,089
Other commitments 33,832 46,486 - - 80,318
Total contractual cash obligations 1,140,702$ 1,349,303$ 665,056$ 323,986$ 3,479,047$
Other commercial commitments:
Letters of credit 122,574$ 198,700$ -$ -$ 321,274$
Payments due or commitment expiration by period
(in thousands)
(1) Further discussion of asset backed medium term 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.
(2) The Company amended the Senior Secured Credit Facilities in February 2009 and as part of the
amendment the final maturity date of the Term Loan was accelerated to June 2013. The
Company was required to make and did make a $20 million pay down upon execution of the
amendment and will be required to make amortization payments of $10 million per year
beginning in 2010.
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