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These excerpts taken from the AN 10-K filed Feb 17, 2010. Other Debt On August 1, 2008, we repaid $14.1 million of 9% senior unsecured notes that matured on that date. At December 31, 2009, we had $226.4 million outstanding under a mortgage facility with an automotive manufacturer’s captive finance subsidiary. The mortgage facility was refinanced under a new facility in November 2007 to provide a fixed interest rate (5.864%) and provide financing secured by 10-year mortgages on certain of our store properties. In connection with this refinancing, in 2007 we received net proceeds of approximately $126.4 million and recorded $1.0 million of expenses, which are included as a component of Other Interest Expense in the accompanying Consolidated Statements of Operations. Prior to this refinancing, the facility utilized short-term LIBOR-based interest rates, which averaged 6.54% for 2007. The mortgage facility requires monthly principal and interest payments of $1.7 million based on a fixed amortization schedule with a balloon payment of $155.4 million due November 2017.
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Table of ContentsIn 2000, we sold our corporate headquarters facility and leased it back in a transaction that was originally accounted for as a financing. During the first quarter of 2009, we amended this lease, resulting in a change in accounting method from financing to sale-leaseback. As a result of this change, we derecognized $21.4 million of assets and a $37.5 million financing liability in the first quarter of 2009. We also recognized a $16.1 million gain on the sale, which is recorded in Other Expenses (Income), Net, and rent expense of $9.1 million, which is recorded in Selling, General, and Administrative Expenses, during the year ended December 31, 2009. Other Debt On August 1, 2008, we repaid $14.1 million of 9% senior unsecured notes that matured on that date. At December 31, 2009, we had $226.4 million outstanding under a mortgage facility with an automotive manufacturer’s captive finance subsidiary. The mortgage facility was refinanced under a new facility in November 2007 to provide a fixed interest rate (5.864%) and provide financing secured by 10-year mortgages on certain of our store properties. In connection with this refinancing, in 2007 we received net proceeds of approximately $126.4 million and recorded $1.0 million of expenses, which are included as a component of Other Interest Expense in the accompanying Consolidated Statements of Operations. Prior to this refinancing, the facility utilized LIBOR-based interest rates, which averaged 6.54% for 2007. The mortgage facility requires monthly principal and interest payments of $1.7 million based on a fixed amortization schedule with a balloon payment of $155.4 million due November 2017. Repayment of the mortgage facility is subject to a prepayment penalty. In 2000, we sold our corporate headquarters facility and leased it back in a transaction that was originally accounted for as a financing. During the first quarter of 2009, we amended this lease, resulting in a change in accounting method from financing to sale-leaseback. As a result of this change, we derecognized $21.4 million of assets and a $37.5 million financing liability in the first quarter of 2009. We also recognized a $16.1 million gain on the sale, which is recorded in Other Expenses (Income), Net, and rent expense of $9.1 million, which is recorded in Selling, General, and Administrative Expenses, during the year ended December 31, 2009.
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Table of ContentsAUTONATION, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
These excerpts taken from the AN 10-K filed Feb 17, 2009. Other
Debt
On August 1, 2008, we repaid $14.1 million of
9% senior unsecured notes that matured on that date.
At December 31, 2008, we had $233.3 million
outstanding under a mortgage facility with an automotive
manufacturer’s captive finance subsidiary. The mortgage
facility was refinanced under a new facility in November 2007 to
provide a fixed interest rate (5.864%) and provide financing
secured by
10-year
mortgages on certain of our store properties. In connection with
this refinancing, in 2007 we received net proceeds of
approximately $126.4 million and recorded $1.0 million
of expenses, which are included as a component of Other Interest
Expense in the accompanying Consolidated Income Statements.
Prior to this refinancing, the facility utilized short-term
LIBOR-based interest rates, which averaged 6.54% for 2007.
Vehicle floorplan payable-trade totaled $1.5 billion at
December 31, 2008, and $1.7 billion at
December 31, 2007. Vehicle floorplan payable-trade reflects
amounts borrowed to finance the purchase of specific vehicle
inventories with manufacturers’ captive finance
subsidiaries. Vehicle floorplan payable-non-trade totaled
$453.5 million at December 31, 2008, and
$440.9 million at December 31, 2007, and represents
amounts borrowed to finance the purchase of specific new and, to
a lesser extent, used vehicle inventories with non-trade
lenders. All the floorplan facilities are at one-month
LIBOR-based rates of interest.
Floorplan facilities are due on demand, but in the case of new
vehicle inventories, are generally paid within several business
days after the related vehicles are sold. Our manufacturer
agreements generally require that the manufacturer have the
ability to draft against the new floorplan facilities so the
lender directly funds
the manufacturer for the purchase of new vehicle inventory.
Floorplan facilities are primarily collateralized by vehicle
inventories and related receivables.
Other Debt On August 1, 2008, we repaid $14.1 million of 9% senior unsecured notes that matured on that date. At December 31, 2008, we had $233.3 million outstanding under a mortgage facility with an automotive manufacturer’s captive finance subsidiary. The mortgage facility was refinanced under a new facility in November 2007 to provide a fixed interest rate (5.864%) and provide financing secured by 10-year mortgages on certain of our store properties. In connection with this refinancing, in 2007 we received net proceeds of approximately $126.4 million and recorded $1.0 million of expenses, which are included as a component of Other Interest Expense in the accompanying Consolidated Income Statements. Prior to this refinancing, the facility utilized short-term LIBOR-based interest rates, which averaged 6.54% for 2007. Vehicle floorplan payable-trade totaled $1.5 billion at December 31, 2008, and $1.7 billion at December 31, 2007. Vehicle floorplan payable-trade reflects amounts borrowed to finance the purchase of specific vehicle inventories with manufacturers’ captive finance subsidiaries. Vehicle floorplan payable-non-trade totaled $453.5 million at December 31, 2008, and $440.9 million at December 31, 2007, and represents amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with non-trade lenders. All the floorplan facilities are at one-month LIBOR-based rates of interest. Floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related vehicles are sold. Our manufacturer agreements generally require that the manufacturer have the ability to draft against the new floorplan facilities so the lender directly funds
the manufacturer for the purchase of new vehicle inventory. Floorplan facilities are primarily collateralized by vehicle inventories and related receivables. Other
Debt
On August 1, 2008, we repaid $14.1 million of
9% senior unsecured notes that matured on that date.
At December 31, 2008, we had $233.3 million
outstanding under a mortgage facility with an automotive
manufacturer’s captive finance subsidiary. The mortgage
facility was refinanced under a new facility in November 2007 to
provide a fixed interest rate (5.864%) and provide financing
secured by
10-year
mortgages on certain of our store properties. In connection with
this refinancing, in 2007 we received net proceeds of
approximately $126.4 million and recorded $1.0 million
of expenses, which are included as a component of Other Interest
Expense in the accompanying Consolidated Income Statements.
Prior to this refinancing, the facility utilized LIBOR-based
interest rates, which averaged 6.54% for 2007. Repayment of the
mortgage facility is subject to a prepayment penalty.
During 2000, we entered into a sale-leaseback transaction
involving our corporate headquarters facility that resulted in
net proceeds of approximately $52.1 million. This
transaction was accounted for as a financing lease, wherein the
property remains on the books and continues to be depreciated.
The gain on this transaction has been deferred and will be
recognized at the end of the lease term, including renewals. The
remaining obligation related to this transaction of
$38.1 million at December 31, 2008, and
$40.4 million at December 31, 2007, is included in
Other Debt in the above table.
Other Debt On August 1, 2008, we repaid $14.1 million of 9% senior unsecured notes that matured on that date. At December 31, 2008, we had $233.3 million outstanding under a mortgage facility with an automotive manufacturer’s captive finance subsidiary. The mortgage facility was refinanced under a new facility in November 2007 to provide a fixed interest rate (5.864%) and provide financing secured by 10-year mortgages on certain of our store properties. In connection with this refinancing, in 2007 we received net proceeds of approximately $126.4 million and recorded $1.0 million of expenses, which are included as a component of Other Interest Expense in the accompanying Consolidated Income Statements. Prior to this refinancing, the facility utilized LIBOR-based interest rates, which averaged 6.54% for 2007. Repayment of the mortgage facility is subject to a prepayment penalty. During 2000, we entered into a sale-leaseback transaction involving our corporate headquarters facility that resulted in net proceeds of approximately $52.1 million. This transaction was accounted for as a financing lease, wherein the property remains on the books and continues to be depreciated. The gain on this transaction has been deferred and will be recognized at the end of the lease term, including renewals. The remaining obligation related to this transaction of $38.1 million at December 31, 2008, and $40.4 million at December 31, 2007, is included in Other Debt in the above table. These excerpts taken from the AN 10-K filed Feb 28, 2008. Other
Debt
At December 31, 2007, we also had $14.1 million of
9% senior unsecured notes due August 1, 2008. The
9% senior unsecured notes are guaranteed by substantially
all of our subsidiaries. As discussed above, in April 2006 we
purchased $309.4 million aggregate principal amount of the
9% senior unsecured notes. As of April 12, 2006,
covenants related to the 9% senior unsecured notes were
substantially eliminated as a result of the successful
completion of the consent solicitation. The remaining aggregate
principal amount of 9% senior unsecured notes was not
tendered for purchase and, accordingly, remains outstanding.
At December 31, 2007, we had $239.7 million
outstanding under a mortgage facility with an automotive
manufacturer’s captive finance subsidiary. The mortgage
facility was refinanced under a new facility in
November 2007 to provide a fixed interest rate (5.864%) and
provide financing secured by
10-year
mortgages on certain of our store properties. In connection with
this refinancing, in 2007 we received net proceeds of
approximately $126.4 million and recorded $1.0 million
of expenses, which are included as a component of Other Interest
Expense in the accompanying Consolidated Income Statements.
Prior to this refinancing, the facility utilized LIBOR-based
interest rates. The facility’s interest rates averaged 6.5%
for 2007 and 6.4% for 2006.
During 2000, we entered into a sale-leaseback transaction
involving our corporate headquarters facility that resulted in
net proceeds of approximately $52.1 million. This
transaction was accounted for as a financing lease, wherein the
property remains on the books and continues to be depreciated.
We have the option to renew the lease at the end of the ten-year
lease term subject to certain conditions. The gain on this
transaction has been deferred and will be recognized at the end
of the lease term, including renewals. The remaining obligation
related to this transaction of $40.4 million at
December 31, 2007, and $42.8 million at
December 31, 2006, is included in Other Debt in the above
table.
Other Debt At December 31, 2007, we also had $14.1 million of 9% senior unsecured notes due August 1, 2008. The 9% senior unsecured notes are guaranteed by substantially all of our subsidiaries. As discussed above, in April 2006 we purchased $309.4 million aggregate principal amount of the 9% senior unsecured notes. As of April 12, 2006, covenants related to the 9% senior unsecured notes were substantially eliminated as a result of the successful completion of the consent solicitation. The remaining aggregate principal amount of 9% senior unsecured notes was not tendered for purchase and, accordingly, remains outstanding. At December 31, 2007, we had $239.7 million outstanding under a mortgage facility with an automotive manufacturer’s captive finance subsidiary. The mortgage facility was refinanced under a new facility in November 2007 to provide a fixed interest rate (5.864%) and provide financing secured by 10-year mortgages on certain of our store properties. In connection with this refinancing, in 2007 we received net proceeds of approximately $126.4 million and recorded $1.0 million of expenses, which are included as a component of Other Interest Expense in the accompanying Consolidated Income Statements. Prior to this refinancing, the facility utilized LIBOR-based interest rates. The facility’s interest rates averaged 6.5% for 2007 and 6.4% for 2006. During 2000, we entered into a sale-leaseback transaction involving our corporate headquarters facility that resulted in net proceeds of approximately $52.1 million. This transaction was accounted for as a financing lease, wherein the property remains on the books and continues to be depreciated. We have the option to renew the lease at the end of the ten-year lease term subject to certain conditions. The gain on this transaction has been deferred and will be recognized at the end of the lease term, including renewals. The remaining obligation related to this transaction of $40.4 million at December 31, 2007, and $42.8 million at December 31, 2006, is included in Other Debt in the above table. | EXCERPTS ON THIS PAGE:
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