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Note 6 - Credit Facilities and Long-Term Debt
 12 Months Ended
Dec. 31, 2012
Debt Disclosure [Text Block]
(6)           Credit Facilities and Long-Term Debt

Below is a summary of our outstanding balances on credit facilities and long-term debt (in thousands):

December 31,
 
2012
   
2011
 
             
New vehicle floor plan commitment (1) (2)
  $ 568,130     $ 229,180  
Floor plan notes payable (2)
    13,454       114,760  
Total floor plan debt
    581,584       343,940  
                 
Used vehicle inventory financing facility
    78,309       -  
Revolving line of credit
    21,045       87,000  
Real estate mortgages
    192,928       194,404  
Other debt
    2,776       5,470  
Total debt
  $ 876,642     $ 630,814  

(1) 
We have a $575 million new vehicle floor plan commitment as part of our credit facility.

(2) 
At December 31, 2012, an additional $6.9 million of floor plan notes payable outstanding on our new vehicle floor plan commitment and $1.4 million of floor plan notes payable on vehicles designated as service loaners are recorded as liabilities related to assets held for sale.

Credit Facility

On April 17, 2012, we executed a new five-year $650 million credit facility with a syndicate of 10 financial institutions, including four manufacturer-affiliated finance companies. On December 19, 2012, we amended the loan agreement to expand the available loan commitment to $800 million, allocating the financing commitment to $575 million in new vehicle inventory floor plan financing, $80 million in used vehicle inventory financing and $145 million on a revolving line of credit for general corporate purposes, including acquisitions and working capital. All borrowings from, and repayments to, our syndicated lending group are presented in the Consolidated Statements of Cash Flows as financing activities.

The new vehicle floor plan financing commitment is collateralized by our new vehicle inventory. Our used vehicle inventory financing facility is collateralized by our used vehicle inventory that is less than 180 days old. Our revolving line of credit is collateralized by our outstanding contracts in transit, other eligible receivables, parts and accessories and equipment. If the outstanding principal balance on our new vehicle inventory floor plan facility, plus requests on any day, exceeds 95% of the loan commitment, a portion of the revolving loan commitment must be reserved. The reserve amount is equal to the lesser of $15.0 million or the maximum revolving loan commitment less the outstanding balance on the loan less outstanding letters of credit. The reserve amount will decrease the revolving loan availability and may be used to repay the new vehicle floor plan balance.

The interest rate on the credit facility varies based on the type of debt with the rate ranging from the one-month LIBOR plus 1.5% to the one-month LIBOR plus 2.0%. Our financial covenants related to this credit facility include maintaining a current ratio of not less than 1.20x, a fixed charge coverage ratio of not less than 1.20x and a leverage ratio of not more than 5.0x.

The interest rate associated with our new vehicle floor plan commitment, excluding the effects of our interest rate swaps, was 1.7% at December 31, 2012.

New Vehicle Floor Plan Lines

We have additional floor plan agreements with manufacturer-affiliated finance companies for vehicles that are designated for use as service loaners. At December 31, 2012, $13.5 million was outstanding on these agreements. Borrowings from, and repayments to, manufacturer-affiliated finance companies are classified as operating activities on the Consolidated Statements of Cash Flows.

Real Estate Mortgages and Other Debt

We have mortgages associated with our owned real estate. Interest rates related to this debt ranged from 1.8% to 5.9% at December 31, 2012 with fixed interest rates on 66% of our outstanding mortgages. The mortgages are payable in various installments through May 2031.

Our other debt includes various notes, capital leases and obligations assumed as a result of acquisitions and other agreements and had interest rates that ranged from 2.0% to 9.0% at December 31, 2012. This debt, which totaled $2.8 million at December 31, 2012, is due in various installments through May 2019.

Future Principal Payments

The schedule of future principal payments on long-term debt as of December 31, 2012 was as follows (in thousands):

Year Ending December 31,
     
2013
  $ 8,182  
2014
    8,459  
2015
    8,713  
2016
    32,885  
2017
    109,216  
Thereafter
    127,603  
Total principal payments
  $ 295,058