3. Inventories and Floor Plan Payable

Inventories consisted of the following (in thousands):


	March 31,		December 31,
	2019		2018
Good Sam services and plans	$	401	$	459
New RVs		1,062,448		1,017,910
Used RVs		120,418		124,527
Products, parts, accessories and miscellaneous		439,697		416,074
	$	1,622,964	$	1,558,970

New and used RV inventory, included in RV and Outdoor Retail segment, are primarily financed by floor plan arrangements through a syndication of banks. The arrangements are collateralized by substantially all of the assets of FreedomRoads, LLC (“FR”), a wholly owned subsidiary of FreedomRoads, which operates the dealerships, and bear interest at one-month London Interbank Offered Rate (“LIBOR”) plus 2.50% as of March 31, 2019 and 2.15% as of December 31, 2018. LIBOR was 2.49% at March 31, 2019 and 2.35% as of December 31, 2018. Borrowings are tied to specific vehicles and principal is due upon the sale of the related vehicle.

As of March 31, 2019 and December 31, 2018, FR maintained floor plan financing through the Seventh Amended and Restated Credit Agreement (“Floor Plan Facility”) with a maturity date of December 12, 2020 and an applicable borrowing rate margin on LIBOR and base rate loans ranging from 2.05% to 2.50% and 0.55% and 1.00%, respectively, based on the consolidated current ratio at FR. The Floor Plan Facility allows FR to borrow (a) up to $1.415 billion under a floor plan facility, (b) up to $15.0 million under a letter of credit facility and (c) up to a maximum amount outstanding of $60.0 million under the revolving line of credit, which maximum amount outstanding will decrease by $3.0 million on the last day of each fiscal quarter, commencing with the fiscal quarter ending March 31, 2020.

The Floor Plan Facility includes an offset account that allows the Company to transfer cash as an offset to the payable under the Floor Plan Facility. These transfers reduce the amount of liability outstanding under the floor plan notes payable that would otherwise accrue interest, while retaining the ability to transfer amounts from the offset account into the Company’s operating cash accounts. As a result of using the floor plan offset account, the Company experiences a reduction in floor plan interest expense in its consolidated statements of income.

The credit agreement governing the Floor Plan Facility contains certain financial covenants. FR was in compliance with all debt covenants at March 31, 2019 and December 31, 2018.

The following table details the outstanding amounts and available borrowings under the Floor Plan Facility as of March 31, 2019 and December 31, 2018 (in thousands):


	March 31,		December 31,
	2019		2018
Floor Plan Facility
Notes payable - floor plan:
Total commitment	$	1,415,000	$	1,415,000
Less: borrowings, net		(882,346)		(885,980)
Less: flooring line aggregate interest reduction account		(152,346)		(97,757)
Additional borrowing capacity		380,308		431,263
Less: accounts payable for sold inventory		(76,534)		(33,928)
Less: purchase commitments		(37,671)		(22,530)
Unencumbered borrowing capacity	$	266,103	$	374,805

Revolving line of credit:	$	60,000	$	60,000
Less borrowings		(42,610)		(38,739)
Additional borrowing capacity	$	17,390	$	21,261

Letters of credit:
Total commitment	$	15,000	$	15,000
Less: outstanding letters of credit		(10,380)		(10,380)
Additional letters of credit capacity	$	4,620	$	4,620