Thrifty Car Rental 2009 Annual Report Download - page 48

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The table below provides information about the Company’s market sensitive financial instruments and
constitutes a “forward-looking statement.” The Company’s primary market risk exposure is volatility of
interest rates, primarily in the United States. The Company manages interest rates through use of a
combination of fixed and floating rate debt and interest rate swap agreements (see Item 8 - Note 11 of
Notes to Consolidated Financial Statements). All items described are non-trading and are stated in U.S.
dollars. Because a portion of the Company’s debt is denominated in Canadian dollars, its carrying value
is impacted by exchange rate fluctuations. However, this foreign currency risk is mitigated by the
underlying collateral which is the Canadian fleet. Other foreign exchange risk is immaterial to the
consolidated results and financial condition of the Company. The fair value and average receive rate of
the interest rate swaps is calculated using projected market interest rates over the term of the related
debt instruments as provided by the counterparties.
Fair Value
Expected Maturity Dates December 31,
as of December 31, 2009 2010 2011 2012 2013 2014 Thereafter Total 2009
(in thousands)
Debt:
Vehicle debt and obligations-
floating rates (1) 390,000$ 500,000$ 500,000$ -$ -$ -$ 1,390,000$ 1,307,100$
Weighted average interest rates 1.05% 2.57% 3.66% - - -
Vehicle debt and obligations-
fixed rates 110,000$ -$ -$ -$ -$ -$ 110,000$ 110,408$
Weighted average interest rates 4.59% - - - - -
Vehicle debt and obligations-
Canadian dollar denominated 69,690$ -$ -$ -$ -$ -$ 69,690$ 69,690$
Weighted average interest rates 1.21% - - - - -
Non-vehicle debt - term loan 10,000$ 10,000$ 10,000$ 128,125$ -$ -$ 158,125$ 143,894$
Weighted average interest rates 3.18% 4.65% 5.82% 6.57% - -
Interest Rate Swaps:
Variable to Fixed 390,000$ 500,000$ 500,000$ -$ -$ -$ 1,390,000$ 1,465,371$
Average pay rate 4.89% 5.27% 5.16% - - -
Average receive rate 0.68% 2.15% 3.32% - - -
(1) Floating rate vehicle debt and obligations include $290 million relating to the Series 2005 Notes, the $600 million Series 2006 Notes
and the $500 million Series 2007 Notes swapped from floating interest rates to fixed interest rates.
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