AutoNation 2000 Annual Report Download - page 32

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30
We believe that we have sufficient operating cash flow and other financial
resources necessary to meet our anticipated capital requirements and
obligations as they come due.
Cash Flows
Cash and cash equivalents increased (decreased) by $(153.8) million,
$(490.0) million and $598.3 million during the years ended December 31, 2000,
1999 and 1998, respectively. The major components of these changes are
discussed below.
Cash Flows from Operating Activities
Cash provided by operating activities was $281.5 million, $47.2 million
and $217.8 million for the years ended December 31, 2000, 1999 and 1998,
respectively.
Cash flows from operating activities include purchases of vehicle
inventory, which are separately financed through secured vehicle financings.
Accordingly, we measure our operating cash flow including net proceeds under
these secured vehicle financings which totaled $159.4 million, $429.7 million
and $65.1 million during the years ended December 31, 2000, 1999 and 1998,
respectively. Including net proceeds under these secured vehicle financings, we
generated operating cash flow of $440.9 million, $476.9 million and $282.9
million during the years ended 2000, 1999 and 1998, respectively.
Cash Flows from Investing Activities
Cash flows from investing activities consist primarily of cash provided by
(used in) business acquisitions and divestitures, capital additions, property
dispositions, net activity of installment loan receivables and other
transactions as further described below.
Cash used in business acquisitions was $313.3 million, $914.0 million and
$804.3 million for the years ended December 31, 2000, 1999 and 1998,
respectively. The decrease in cash used in business acquisitions was primarily
due to our shift in 2000 to acquire single dealerships or small dealership
groups focused in key existing markets. Cash used in business acquisitions
during 2000 includes $122.4 million in deferred purchase price for certain
prior year automotive retail acquisitions. See "Business Acquisitions and
Divestitures" in Management's Discussion and Analysis of Financial Condition
and Results of Operations and Note 2, Acquisitions and Divestitures, of the
Notes to Consolidated Financial Statements for a further discussion of business
combinations.
Capital expenditures were $148.2 million, $242.3 million and $256.7
million during the years ended December 31, 2000, 1999 and 1998, respectively.
The decrease in capital expenditures in 2000 is due to the megastore closures
and fewer acquisitions.
Proceeds from the sale of property and equipment and assets held for sale
were $129.9 million, $88.4 million and $12.3 million during the years ended
December 31, 2000, 1999, and 1998, respectively. The increase is primarily due
to the sales of megastore and other properties held for sale and the sale of