XML 24 R13.htm IDEA: XBRL DOCUMENT
v3.20.2

Long-Term Debt and Commercial Paper | 6 Months Ended
--- | ---
Jun. 30, 2020
Debt Disclosure [Abstract] |
Long-Term Debt and Commercial Paper | LONG-TERM DEBT AND COMMERCIAL PAPER Long-term debt consists of the following:
Debt Description |  | Maturity Date |  | Interest Payable |  | June 30, 2020 |  | December 31, 2019
5.5% Senior Notes |  | February 1, 2020 |  | February 1 and August 1 |  | $ | — |  |  | $ | 350.0 |
3.35% Senior Notes |  | January 15, 2021 |  | January 15 and July 15 |  | 300.0 |  |  | 300.0 |
3.5% Senior Notes |  | November 15, 2024 |  | May 15 and November 15 |  | 450.0 |  |  | 450.0 |
4.5% Senior Notes |  | October 1, 2025 |  | April 1 and October 1 |  | 450.0 |  |  | 450.0 |
3.8% Senior Notes |  | November 15, 2027 |  | May 15 and November 15 |  | 300.0 |  |  | 300.0 |
4.75% Senior Notes |  | June 1, 2030 |  | June 1 and December 1 |  | 500.0 |  |  | — |
Revolving credit facility |  | March 26, 2025 |  | Monthly |  | — |  |  | — |
Finance leases and other debt |  | Various dates through 2039 |  | Monthly |  | 106.6 |  |  | 93.9 |
|  |  |  |  |  | 2,106.6 |  |  | 1,943.9 |
Less: unamortized debt discounts and debt issuance costs |  | (16.2 | ) |  | (9.8 | )
Less: current maturities |  |  |  |  |  | (307.3 | ) |  | (355.6 | )
Long-term debt, net of current maturities |  |  |  | $ | 1,783.1 |  |  | $ | 1,578.5 |
Debt Refinancing Transaction On March 26, 2020, we amended and restated our existing unsecured credit agreement to, among other things, (1) provide for lower commitment fees and loan margins as set forth in the amended and restated credit agreement, (2) extend the maturity date to March 26, 2025, and (3) provide for customary LIBOR replacement provisions. Senior Unsecured Notes and Credit Agreement On May 21, 2020, we issued $500.0 million aggregate principal amount of 4.75% Senior Notes due 2030, which were sold at 99.479% of the aggregate principal amount. In February 2020, we repaid the outstanding $350.0 million of 5.5% Senior Notes due 2020. Our 3.35% Senior Notes due 2021 will mature on January 15, 2021, and were, therefore, reclassified to current maturities during the first quarter of 2020. The interest rates payable on our outstanding senior unsecured notes are subject to adjustment upon the occurrence of certain credit rating events as provided in the indentures for these senior unsecured notes. Under our amended and restated credit agreement, we have a $1.8 billion revolving credit facility that matures on March 26, 2025. The credit agreement also contains an accordion feature that allows us, subject to credit availability and certain other conditions, to increase the amount of the revolving credit facility, together with any added term loans, by up to $500.0 million in the aggregate. As of June 30, 2020, we had no borrowings outstanding under our revolving credit facility. We have a $200.0 million letter of credit sublimit as part of our revolving credit facility. The amount available to be borrowed under the revolving credit facility is reduced on a dollar-for-dollar basis by the cumulative amount of any outstanding letters of credit, which was $39.7 million at June 30, 2020, leaving a borrowing capacity under the revolving credit facility of $1.8 billion at June 30, 2020. As of June 30, 2020, this borrowing capacity was limited under the applicable maximum consolidated leverage ratio contained in our credit agreement to $1.3 billion. Our revolving credit facility under the amended credit agreement provides for a commitment fee on undrawn amounts ranging from 0.125% to 0.20% and interest on borrowings at LIBOR or the base rate, in each case plus an applicable margin. The applicable margin ranges from 1.125% to 1.50% for LIBOR borrowings and 0.125% to 0.50% for base rate borrowings. The interest rate charged for our revolving credit facility is affected by our leverage ratio. For instance, an increase in our leverage ratio from greater than or equal to 2.0 x but less than 3.25 x to greater than or equal to 3.25 x would result in a 12.5 basis point increase in the applicable margin. Within the meaning of Regulation S-X, Rule 3-10, AutoNation, Inc. (the parent company) has no independent assets or operations. If the guarantees of our subsidiaries were to be issued under our existing registration statement, we expect that such guarantees would be full and unconditional and joint and several, and any subsidiaries other than the guarantor subsidiaries would be minor. Other Long-Term Debt At June 30, 2020, we had finance leases and other debt obligations of $106.6 million, which are due at various dates through 2039. Commercial Paper We have a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes on a private placement basis up to a maximum aggregate amount outstanding at any time of $1.0 billion. The interest rate for the commercial paper notes varies based on duration and market conditions. The maturities of the commercial paper notes may vary, but may not exceed 397 days from the date of issuance. Proceeds from the issuance of commercial paper notes are used to repay borrowings under the revolving credit facility, to finance acquisitions and for working capital, capital expenditures, share repurchases, and/or other general corporate purposes. We plan to use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. A downgrade in our credit ratings could negatively impact our ability to issue, or the interest rates for, commercial paper notes. At June 30, 2020, we had no commercial paper notes outstanding. At December 31, 2019, we had $170.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 2.13% and a weighted-average remaining term of 12 days.

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration