CREDIT ARRANGEMENTS

12 Months Ended

Dec. 31, 2011

CREDIT ARRANGEMENTS

NOTE 6. CREDIT ARRANGEMENTS

Certain of the Company’s foreign subsidiaries maintain bank lines of credit for short-term working capital purposes. These credit lines are supported by standby letters of credit issued by a United States bank, or guarantees issued by the Company to the foreign banks issuing the credit line. Amounts available for borrowing under lines of credit totaled $15,128 and $21,857 at December 31, 2011 and 2010, respectively. At December 31, 2011, the Company had no amounts outstanding under these lines and was contingently liable for approximately $103,813 under outstanding standby letters of credit and guarantees. At December 31, 2011, the Company was in compliance with all restrictive covenants of these credit lines and the associated credit facilities.

The standby letters of credit and guarantees relate to obligations of the Company’s foreign subsidiaries for credit extended in the ordinary course of business by direct carriers, primarily airlines, and for duty and tax deferrals available from governmental entities responsible for customs and value-added-tax (VAT) taxation. The total underlying amounts due and payable for transportation and governmental excises are properly recorded as obligations in the books of the respective foreign subsidiaries, and there would be no need to record additional expense in the unlikely event the parent company were to be required to perform.