AutoNation 2015 Annual Report Download - page 53

Table of Contents
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The following table summarizes our payment obligations under certain contracts at December 31, 2015. The amounts presented are based upon, among
other things, the terms of any relevant agreements. Future events that may occur related to the following payment obligations could cause actual payments to
differ significantly from these amounts.
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 













Vehicle floorplan payable (Note 3)(1) $ 3,727.1
$ 3,727.1
$ —
$ —
$ —
Long-term debt, including capital leases (Note 7)(1)(2) 1,767.1
13.4
579.7
394.7
779.3
Commercial paper (Note 7)(1) 599.5
599.5
—
—
—
Interest payments(3) 450.9
89.6
155.0
94.1
112.2
Operating lease and other commitments (Note 8)(1)(4) 401.5
45.9
78.5
66.8
210.3
Unrecognized tax benefits, net (Note 11)(1) 7.1
—
2.7
4.4
—
Deferred compensation obligations(5) 64.6
5.4
—
—
59.2
Estimated chargeback liability (Note 18)(1)(6) 97.3
56.2
36.7
4.3
0.1
Estimated self-insurance obligations (Note 6)(1)(7) 74.8
27.2
25.1
11.4
11.1
Purchase obligations(8) 467.6
428.1
37.1
0.8
1.6
Total $ 7,657.5
$ 4,992.4
$ 914.8
$ 576.5
$ 1,173.8
(1) See Notes to Consolidated Financial Statements.
(2) Amounts for long-term debt obligations exclude $3.6 million of unamortized debt discounts related to our 6.75% Senior Notes due 2018, 3.35% Senior
Notes due 2021, and 4.5% Senior Notes due 2025.
(3) Primarily represents scheduled fixed interest payments on our outstanding senior unsecured notes, mortgage facility, and capital leases. Estimates of
future interest payments for vehicle floorplan payables and other variable rate debt are excluded.
(4) Amounts for operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. In 2015,
these charges totaled approximately $26 million. Additionally, operating leases that are on a month-to-month basis are not included.
(5) Due to uncertainty regarding timing of payments expected beyond one year, long-term obligations for deferred compensation arrangements have been
classified in the “More Than 5 Years” column.
(6) Our estimated chargeback obligations do not have scheduled maturities, however, the timing of future payments is estimated based on historical
patterns.
(7) Our estimated self-insurance obligations are based on management estimates and actuarial calculations. Although these obligations do not have
scheduled maturities, the timing of future payments is estimated based on historical patterns.
(8) Primarily represents acquisition-related commitments, as well as purchase orders and contracts in connection with information technology and
communication systems and real estate construction projects.
We expect that the amounts above will be funded through cash flows from operations or borrowings under our commercial paper program or credit
agreement. In the case of payments due upon the maturity of our debt instruments, we currently expect to be able to refinance such instruments in the normal
course of business.
In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of
our performance. At December 31, 2015, surety bonds, letters of credit, and cash deposits totaled $98.9 million, of which $44.1 million represented letters of
credit. We do not currently provide cash collateral for outstanding letters of credit. We have negotiated a letter of credit sublimit as part of our revolving
credit
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