This excerpt taken from the AN 10-K filed Feb 17, 2010.
The following table sets forth information regarding our share repurchases over the past three years:
(In millions, except per share data)
In October 2009, our Board of Directors authorized an additional $250 million under our existing share repurchase program. As of December 31, 2009, $256.9 million remained available for share repurchases under our repurchase program.
Future share repurchases are subject to limitations contained in the indenture relating to our floating rate and 7% senior unsecured notes. As of January 1, 2010, $45.3 million remained available for share repurchases and other restricted payments under the indenture relating to our senior unsecured notes. This amount will increase in future periods by 50% of our cumulative consolidated net income (as defined in the indenture), the net proceeds of stock option exercises, and certain other items, and decrease by the amount of future share repurchases and other restricted payments subject to these limitations.
The decision to repurchase shares at any given point in time is based on such factors as the market price of our common stock versus our view of its intrinsic value, the potential impact on our capital structure (including compliance with financial ratios in our debt agreements), and the expected return on competing uses of capital such as dealership acquisitions, capital investments in our current businesses, or repurchases of our debt.