AutoNation 2006 Annual Report Download - page 54
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Table of Contents
The components of receivables, net of allowance for doubtful accounts, at December 31 are as follows:
Trade receivables $ 91.2 $ 94.5
Manufacturer receivables 161.4 172.4
Other 102.8 96.5
355.4 363.4
Less: Allowances (6.1) (6.6)
349.3 356.8
Contracts-in-transit and vehicle receivables 435.5 418.2
Income tax refundable (See Note 11) 28.9 —
Receivables, net $ 813.7 $ 775.0
Contracts-in-transit and vehicle receivables represent receivables from financial institutions for the portion of the vehicle sales price
financed by the Company’s customers.
The components of inventory at December 31 are as follows:
New vehicles $ 1,902.0 $ 2,118.2
Used vehicles 306.0 318.8
Parts, accessories and other 153.4 147.6
$ 2,361.4 $2,584.6
At December 31, 2006 and 2005, vehicle floorplan payable-trade totaled $2.0 billion and $2.3 billion, respectively. Vehicle floorplan
payable-trade reflects amounts borrowed to finance the purchase of specific vehicle inventories with the corresponding manufacturers’
captive finance subsidiaries (“trade lenders”). Vehicle floorplan payable-non-trade totaled $233.9 million and $102.2 million, at
December 31, 2006 and 2005, respectively, and represents amounts borrowed to finance the purchase of specific vehicle inventories with
non-trade lenders. 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 the Company as before the sale. As a result of this sale, the
Company has treated new vehicles financed after the change in GMAC ownership control (totaling $139.3 million at December 31,
2006) as vehicle floorplan-non-trade. Vehicles financed by GMAC prior to this transaction (totaling $281.2 million at December 31,
2006) continue to be classified as floorplan-trade. Changes in vehicle floorplan payable-trade are reported as operating cash flows and
changes in vehicle floorplan-non-trade are reported as financing cash flows in the accompanying Consolidated Statements of Cash Flows.
All Company floorplan facilities, which utilize LIBOR-based interest rates, averaged 6.2% and 4.6% for 2006 and 2005,
respectively. Secured floorplan facilities are used to finance new vehicle inventories and the amounts outstanding thereunder are due on
demand, but are generally paid within several business days after the related vehicles are sold. Floorplan facilities are primarily
collateralized by new vehicle inventories and related receivables. The Company’s manufacturer agreements generally require that the
manufacturer have the ability to draft against
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