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23
interests in the stores nor do we provide any guarantees, other
than a corporate level guarantee of lease payments, in connec-
tion with the sale-leasebacks. The operating leases that resulted
from these transactions are included in the table below.
FRANCHISE LOAN GUARANTY. We have guaranteed the borrow-
ings of certain independent franchisees under a franchise loan
program with several banks and we also guarantee franchisee
borrowings under certain other debt facilities. At December 31,
2006, the portion that the Company might be obligated to repay
in the event franchisees defaulted was $111.6 million. Of this
amount, approximately $81.3 million represents franchisee
borrowings outstanding under the franchisee loan program and
approximately $30.3 million represents franchisee borrowings
that we guarantee under other debt facilities. However, due to
franchisee borrowing limits, we believe any losses associated
with any defaults would be mitigated through recovery of rental
merchandise and other assets. Since its inception in 1994, we
have had no significant losses associated with the franchisee
loan and guaranty program. The Company believes the likelihood
of any significant amounts being funded in connection with
these commitments to be remote.
We have no long-term commitments to purchase merchandise.
See Note F to the Consolidated Financial Statements for further
information. The following table shows our approximate con-
tractual obligations, including interest, and commitments to
make future payments as of December 31, 2006:
Period Less Period 2–3 Period 4–5 Period Over
(In Thousands) Total Than 1 Year Years Years 5 Years
Credit Facilities, Excluding Capital Leases $109,856 $ 10,923 $ 59,623 $24,009 $15,301
Capital Leases 20,118 984 2,272 2,697 14,165
Operating Leases 269,916 73,970 99,716 40,811 55,419
Total Contractual Cash Obligations $399,890 $ 85,877 $161,611 $67,517 $84,885
The following table shows the Company’s approximate commercial commitments as of December 31, 2006:
Period Less Period 2–3 Period 4–5 Period Over
(In Thousands) Total Than 1 Year Years Years 5 Years
Guaranteed Borrowings of Franchisees $111,587 $111,587 $ — $ — $ —