Thrifty Car Rental 2010 Annual Report Download - page 54

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
The following table 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, 2010 2011 2012 2013 2014 2015 Thereafter Total 2010
(in thousands)
Debt:
Vehicle debt and obligations-
floating rates (1) 500,000$ 700,000$ -$ -$ -$ -$ 1,200,000$ 1,178,875$
Weighted average interest rates 0.80% 2.13% - - - -
Vehicle debt and obligations-
fixed rates -$ -$ -$ -$ -$ -$ -$ -$
Weighted average interest rates - - - - - -
Vehicle debt and obligations-
Canadian dollar denominated 49,118$ -$ -$ -$ -$ -$ 49,118$ 49,118$
Weighted average interest rates 3.43% - - - - -
Non-vehicle debt - term loan 10,000$ 10,000$ 128,125$-$ -$ -$ 148,125$ 146,459$
Weighted average interest rates 2.89% 3.60% 4.70% - - -
Interest Rate Swaps:
Variable to Fixed 500,000$ 500,000$ -$ -$ -$ -$ 1,000,000$ 1,036,888$
Average pay rate 5.27% 5.16% - - - -
Average receive rate 0.39% 1.10% - - - -
(1) Floating rate vehicle debt and obligations include $500 million relating to the Series 2006-1 notes and the $500 million Series 2007-1
notes swapped from floating interest rates to fixed interest rates, and the $200 million Series 2010-1 VFN.
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