Thrifty Car Rental 2009 Annual Report Download - page 42

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asset backed medium term notes in May 2007, the proceeds of the $250 million Term Loan in June 2007,
and an increase of $42.1 million in other existing bank vehicle lines of credit.
Contractual Obligations and Commitments
The Company has various contractual commitments primarily related to asset backed medium term notes
and short-term borrowings outstanding for vehicle purchases, a non-vehicle related term loan, airport
concession fee and operating lease commitments related to airport and other facilities, technology
contracts, and vehicle purchases. The Company expects to fund these commitments with cash
generated from operations, sales proceeds from disposal of used vehicles and future issuances of asset
backed notes as existing medium term notes mature. The following table provides details regarding the
Company’s contractual cash obligations and other commercial commitments subsequent to December
31, 2009:
Beyond
2010 2011-2012 2013-2014 2014 Total
Contractual cash obligations:
Asset backed medium term notes (1) 562,569$ 1,041,321$ -$ -$ 1,603,890$
Other short-term borrowings (1) 70,535 - - - 70,535
Subtotal - Vehicle debt and obligations 633,104 1,041,321 - - 1,674,425
Term Loan 14,871 34,422 132,134 - 181,427
Subtotal - Non-vehicle debt 14,871 34,422 132,134 - 181,427
Total debt and other obligations 647,975 1,075,743 132,134 - 1,855,852
Operating lease commitments 41,477 60,889 34,770 56,722 193,858
Airport concession fee commitments 76,363 122,720 80,437 104,216 383,736
Vehicle purchase commitments 1,409,129 - - - 1,409,129
Other commitments 24,463 24,033 - - 48,496
Total contractual cash obligations 2,199,407$ 1,283,385$ 247,341$ 160,938$ 3,891,071$
Other commercial commitments:
Letters of credit 147,142$ -$ -$ -$ 147,142$
Payments due or commitment expiration by period
(in thousands)
(1) Further discussion of asset backed medium term notes and short-term borrowings is below and in
Item 8 - Note 10 of Notes to Consolidated Financial Statements. Amounts include both principal
and interest payments. Amounts exclude related discounts, where applicable.
The Company also has self-insured liabilities related to third-party bodily injury and property damage
claims totaling $108.6 million that are not included in the contractual obligations and commitments table
above. See Item 8 - Note 15 of Notes to Consolidated Financial Statements.
Asset Backed Medium Term Notes
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. Borrowings under the asset backed medium term notes
are secured by eligible vehicle collateral and bear interest at fixed rates ranging from 4.58% to 5.27%
including certain floating rate notes swapped to fixed rates. The Company typically accesses the medium
term note market each year to replace maturing notes; however, the Company did not need to access this
market in 2008 or 2009. Proceeds from the asset backed medium term notes that are temporarily not
utilized for financing vehicles and certain related receivables are maintained in restricted cash and
investment accounts and are available for the purchase of vehicles. These amounts totaled
approximately $590.8 million at December 31, 2009.
41