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This excerpt taken from the AN 10-K filed Feb 17, 2010. Cash Flows from Operating Activities Our primary sources of operating cash flows are collections from contracts-in-transit and customers following the sale of vehicles and proceeds from vehicle floorplan payable-trade. Our primary uses of cash from operating activities are repayments of vehicle floorplan payable-trade, personnel related expenditures, and payments related to taxes and leased properties. 2009 compared to 2008 Net cash provided by operating activities during 2009, as compared to 2008, was impacted by a decrease in cash provided by changes in working capital. 2008 compared to 2007 Net cash provided by operating activities during 2008 was affected by a change in the classification of borrowings from a floorplan lender in connection with the sale of a majority stake in General Motors Acceptance Corporation (“GMAC”) by General Motors (“GM”), which was GM’s wholly-owned captive finance subsidiary prior to this transaction. As a result of this sale, which occurred on November 30, 2006, we have classified new borrowings from GMAC subsequent to this transaction as vehicle floorplan non-trade, with related changes reflected as financing cash flows. Accordingly, net floorplan borrowings from GMAC subsequent to this transaction are reflected as cash provided by financing activities, while repayments in 2007 of amounts due to GMAC prior to this transaction (totaling $305.8 million during 2007) are reflected as cash used by operating activities. During 2008, all borrowings and repayments related to GMAC were reflected as financing activities, since the repayment of amounts due to GMAC prior to this transaction were completed during 2007. After considering the effect of this reclassification, net cash provided by operating activities during 2008, as compared to 2007, was impacted by an increase in cash provided by changes in working capital, partially offset by a reduction in earnings. These excerpts taken from the AN 10-K filed Feb 17, 2009. Cash
Flows from Operating Activities
Net cash provided by operating activities during 2008 was
$685.4 million, as compared to $207.2 million in 2007,
and $299.5 million in 2006.
Net cash provided by operating activities during 2008 was
primarily affected by a change in the classification of
borrowings from a floorplan lender, and a reduction in earnings,
as further discussed below.
Net cash provided by operating activities during 2008 was
affected by a change in the classification of borrowings from a
floorplan lender, in connection with the sale of a majority
stake in General Motors Acceptance Corporation
(“GMAC”) by General Motors (“GM”), which was
GM’s wholly-owned captive finance subsidiary prior to this
transaction. As a result of this sale, which occurred on
November 30, 2006, we have classified new borrowings from
GMAC subsequent to this transaction as vehicle floorplan
non-trade, with related changes reflected as financing cash
flows. Accordingly, net floorplan borrowings from GMAC
subsequent to this transaction are reflected as cash provided by
financing activities, while repayments in 2007 of amounts due to
GMAC prior to this transaction (totaling $305.8 million
during 2007) are reflected as cash used by operating
activities. During 2008, all borrowings and repayments related
to GMAC were reflected as financing activities, since the
repayment of amounts due to GMAC prior to this transaction were
completed during 2007. After considering the effect of this
reclassification, net cash provided by operating activities
during 2008, compared to 2007, was impacted by an increase in
cash provided by changes in working capital, partially offset by
a reduction in earnings.
Net cash provided by operating activities during 2007, as
compared to 2006, was also impacted by the GMAC
reclassification. Net floorplan borrowings from GMAC totaled
$231.5 million during 2007 and were reflected as cash
provided by financing activities, while repayments in 2007 of
amounts due to GMAC prior to this transaction continued to be
reflected as cash used by operating activities. Partially
offsetting the GMAC
reclassification was a $130.4 million reduction in tax
payments during 2007, as compared to 2006. A portion of this
reduction pertains to estimated federal tax payments totaling
approximately $100 million that we made in 2006, related to
estimated taxes for the third and fourth quarter of 2005,
payment for which had been deferred as allowed for filers
affected by hurricanes in 2005. The reduction in cash provided
by operating activities also reflects lower earnings in 2007, as
compared to 2006. Additionally, cash provided by operating
activities was favorably impacted in 2006 by a
$34.5 million adjustment to net income to reflect tender
premium and other financing costs related to our April 2006 debt
tender offer as a financing activity.
Cash Flows from Operating Activities Net cash provided by operating activities during 2008 was $685.4 million, as compared to $207.2 million in 2007, and $299.5 million in 2006. Net cash provided by operating activities during 2008 was primarily affected by a change in the classification of borrowings from a floorplan lender, and a reduction in earnings, as further discussed below. Net cash provided by operating activities during 2008 was affected by a change in the classification of borrowings from a floorplan lender, in connection with the sale of a majority stake in General Motors Acceptance Corporation (“GMAC”) by General Motors (“GM”), which was GM’s wholly-owned captive finance subsidiary prior to this transaction. As a result of this sale, which occurred on November 30, 2006, we have classified new borrowings from GMAC subsequent to this transaction as vehicle floorplan non-trade, with related changes reflected as financing cash flows. Accordingly, net floorplan borrowings from GMAC subsequent to this transaction are reflected as cash provided by financing activities, while repayments in 2007 of amounts due to GMAC prior to this transaction (totaling $305.8 million during 2007) are reflected as cash used by operating activities. During 2008, all borrowings and repayments related to GMAC were reflected as financing activities, since the repayment of amounts due to GMAC prior to this transaction were completed during 2007. After considering the effect of this reclassification, net cash provided by operating activities during 2008, compared to 2007, was impacted by an increase in cash provided by changes in working capital, partially offset by a reduction in earnings. Net cash provided by operating activities during 2007, as compared to 2006, was also impacted by the GMAC reclassification. Net floorplan borrowings from GMAC totaled $231.5 million during 2007 and were reflected as cash provided by financing activities, while repayments in 2007 of amounts due to GMAC prior to this transaction continued to be reflected as cash used by operating activities. Partially offsetting the GMAC
reclassification was a $130.4 million reduction in tax payments during 2007, as compared to 2006. A portion of this reduction pertains to estimated federal tax payments totaling approximately $100 million that we made in 2006, related to estimated taxes for the third and fourth quarter of 2005, payment for which had been deferred as allowed for filers affected by hurricanes in 2005. The reduction in cash provided by operating activities also reflects lower earnings in 2007, as compared to 2006. Additionally, cash provided by operating activities was favorably impacted in 2006 by a $34.5 million adjustment to net income to reflect tender premium and other financing costs related to our April 2006 debt tender offer as a financing activity. These excerpts taken from the AN 10-K filed Feb 28, 2008. Cash
Flows from Operating Activities
Net cash provided by operating activities during 2007 was
$206.9 million, as compared to $302.7 million in 2006,
and $579.6 million in 2005.
Table of Contents
Net cash provided by operating activities during 2007 was
primarily affected by a change in the classification of
borrowings from a floorplan lender, a reduction in tax payments,
and a reduction in earnings, as further discussed below.
On November 30, 2006, General Motors (“GM”)
completed the sale of a majority stake in General Motors
Acceptance Corporation (“GMAC”), which was GM’s
wholly-owned captive finance subsidiary prior to this
transaction. As a result of this sale, we have classified new
borrowings from GMAC subsequent to this transaction as vehicle
floorplan payable-non-trade, with related changes reflected as
financing cash flows. Accordingly, net floorplan borrowings from
GMAC since this transaction (totaling $231.5 million for
2007) are reflected as cash provided by financing
activities, while repayments in 2007 of amounts due to GMAC
prior to this transaction continue to be reflected as cash used
by operating activities.
Partially offsetting the GMAC reclassification was a
$130.4 million reduction in tax payments during 2007, as
compared to 2006. A portion of this reduction pertains to
estimated federal tax payments totaling approximately
$100 million that we made in 2006, related to estimated
taxes for the third and fourth quarter of 2005, payment for
which had been deferred as allowed for filers affected by
hurricanes in 2005.
The reduction in cash provided by operating activities also
reflects lower earnings in 2007, as compared to 2006.
Additionally, cash provided by operating activities was
favorably impacted in 2006 by a $34.5 million adjustment to
net income to reflect tender premium and other financing costs
related to our April 2006 debt tender offer as a financing
activity.
Cash provided by operating activities decreased in 2006, as
compared to 2005, primarily as a result of the federal tax
payments totaling approximately $100 million made in 2006
that were related to estimated taxes for the third and fourth
quarter of 2005, as discussed above. Additionally, cash provided
by operating activities also reflects lower earnings in 2006 as
compared to 2005.
Cash Flows from Operating Activities Net cash provided by operating activities during 2007 was $206.9 million, as compared to $302.7 million in 2006, and $579.6 million in 2005.
Table of ContentsNet cash provided by operating activities during 2007 was primarily affected by a change in the classification of borrowings from a floorplan lender, a reduction in tax payments, and a reduction in earnings, as further discussed below. On November 30, 2006, General Motors (“GM”) completed the sale of a majority stake in General Motors Acceptance Corporation (“GMAC”), which was GM’s wholly-owned captive finance subsidiary prior to this transaction. As a result of this sale, we have classified new borrowings from GMAC subsequent to this transaction as vehicle floorplan payable-non-trade, with related changes reflected as financing cash flows. Accordingly, net floorplan borrowings from GMAC since this transaction (totaling $231.5 million for 2007) are reflected as cash provided by financing activities, while repayments in 2007 of amounts due to GMAC prior to this transaction continue to be reflected as cash used by operating activities. Partially offsetting the GMAC reclassification was a $130.4 million reduction in tax payments during 2007, as compared to 2006. A portion of this reduction pertains to estimated federal tax payments totaling approximately $100 million that we made in 2006, related to estimated taxes for the third and fourth quarter of 2005, payment for which had been deferred as allowed for filers affected by hurricanes in 2005. The reduction in cash provided by operating activities also reflects lower earnings in 2007, as compared to 2006. Additionally, cash provided by operating activities was favorably impacted in 2006 by a $34.5 million adjustment to net income to reflect tender premium and other financing costs related to our April 2006 debt tender offer as a financing activity. Cash provided by operating activities decreased in 2006, as compared to 2005, primarily as a result of the federal tax payments totaling approximately $100 million made in 2006 that were related to estimated taxes for the third and fourth quarter of 2005, as discussed above. Additionally, cash provided by operating activities also reflects lower earnings in 2006 as compared to 2005. This excerpt taken from the AN 10-K filed Feb 28, 2007. Cash
Flows from Operating Activities
Cash provided by operating activities was $299.1 million,
$579.8 million and $562.0 million for the years ended
December 31, 2006, 2005 and 2004, respectively.
Cash flows from operating activities include net income adjusted
for non-cash items and the effects of changes in working capital
including changes in vehicle floorplan payable-trade (vehicle
floorplan payables with the automotive manufacturers’
captive finance subsidiary for the related franchise), which
directly relates to changes in new vehicle inventory for those
franchises. On November 30, 2006, General Motors
(“GM”) completed the sale of a majority stake in
General Motors Acceptance Corporation (“GMAC”), which
was GM’s wholly-owned captive finance subsidiary prior to
this transaction. GMAC will remain the exclusive provider of
GM-sponsored auto finance programs and is expected to continue
to provide GM dealers and their customers with the same
financial products and services under the same arrangements with
us as before the sale. However, as a result of this sale, we
have treated new vehicles financed after the change in GMAC
ownership control (totaling $139.3 million at
December 31, 2006) as vehicle floorplan-non-trade with
related changes as financing cash flows. Vehicles financed by
GMAC prior to this transaction (totaling $281.2 million at
December 31, 2006) continue to be classified as
floorplan-trade with related changes as operating cash flows.
During 2007, as we sell the vehicles financed by GMAC, the
repayment of the $281.2 million classified as
floorplan-trade at December 31, 2006 will be reflected as a
use of cash flows from operating activities. Vehicle purchases
financed through GMAC in 2007 will be classified as
floorplan-non-trade and reflected as sources of cash flows from
financing activities. Payments to GMAC for purchases classified
as floorplan-non-trade will be reflected as uses of cash flows
from financing activities.
In 2006, we made estimated state tax and federal tax payments
totaling $278.3 million, including approximately
$100 million related to provisions for the third and fourth
quarter of 2005, payment for which had been deferred as allowed
for filers impacted by hurricanes in 2004. In March 2003, we
entered into a settlement agreement with the IRS with respect to
the tax treatment of certain transactions we entered into in
1997 and 1999. In 2004, we prepaid the remaining balance due
related to the IRS settlement totaling $128.9 million,
including accrued interest. Cash used in discontinued operations
was $4.5 million, $3.3 million and $23.4 million
during 2006, 2005 and 2004, respectively. A portion of the cash
used in 2006, 2005 and 2004 relates to payments made in
conjunction with property leases assumed from ANC Rental.
This excerpt taken from the AN 10-K filed Feb 24, 2005. Cash Flows
from Operating Activities
Cash provided by operating activities was $441.8 million, $365.8 million and $627.5 million for the years ended December 31, 2004, 2003 and 2002, respectively. Cash flows from operating activities include net income adjusted for non-cash items and the effects of changes in working capital including changes in vehicle floorplan payable, which directly relates to changes in new vehicle inventory. Additionally, we paid portions of the IRS settlement totaling $128.9 million and $366.0 million during 2004 and 2003, respectively, representing the entire balance of the amount due under the settlement. During 2004, we reclassified certain amounts in the 2003 and 2002 Consolidated Statements of Cash Flows from investing activities to operating activities, including certain items related to our former loan underwriting business, as a result of recent guidance issued by the Securities and Exchange Commission. In December 2001, we decided to exit the business of underwriting retail automobile loans for customers at our stores, which we determined was not a part of our core automotive retail business. In July 2003, we sold all of our finance receivables portfolio for proceeds totaling $52.4 million, resulting in no gain or loss on the transaction. Collections of installment loans receivable and other items related to the wind-down of this business totaled $27.0 million and $86.7 million for the years ended December 31, 2003 and 2002, respectively.
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