AutoNation 2015 Annual Report Download - page 51

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Table of Contents

The following table summarizes the changes in our cash provided by (used in) operating, investing, and financing activities:

 
Net cash provided by operating activities $ 507.2
$ 485.1
$ 484.1
Net cash used in investing activities $ (509.4)
$ (376.0)
$ (257.8)
Net cash provided by (used in) financing activities $ 0.9
$ (102.9)
$ (226.8)
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, collections from
customers for the sale of parts and services and finance and insurance products, and proceeds from vehicle floorplan payable-trade. Our primary uses of cash
from operating activities are repayments of vehicle floorplan payable-trade, purchases of parts inventory, personnel-related expenditures, and payments
related to taxes and leased properties.

Net cash provided by operating activities increased during 2015, as compared to 2014, and was primarily due to a decrease in working capital
requirements and an increase in earnings.

Net cash provided by operating activities was relatively flat during 2014, as compared to 2013, and was impacted by an increase in working capital and
higher earnings.
During 2014, we paid $7.2 million in connection with refinancing our indebtedness. Cash flows from operating activities reflect $1.2 million of these cash
payments that we charged to expense related to this refinancing transaction. In addition, we charged to expense $0.4 million of previously deferred debt
issuance costs. Cash flows from financing activities, discussed below, reflect $6.0 million of debt issuance costs that are being amortized to interest expense
over the term of our credit agreement.
Cash Flows from Investing Activities
Net cash flows from investing activities consist primarily of cash used in capital additions, activity from business acquisitions, business divestitures,
property dispositions, and other transactions.
We will make facility and infrastructure upgrades and improvements from time to time as we identify projects that are required to maintain our current
business or that we expect to provide us with acceptable rates of return.

Net cash used in investing activities increased during 2015, as compared to 2014, primarily due to an increase in cash used in business acquisitions, net of
cash acquired, an increase in property and equipment purchases, partially offset by an increase in proceeds from the sale of property and equipment.

Net cash used in investing activities increased during 2014, as compared to 2013, primarily due to an increase in cash used in business acquisitions, net of
cash acquired, an increase in property and equipment purchases, and a decrease in proceeds from the disposal of assets held for sale, partially offset by a
decrease in property operating lease buy-outs and an increase in cash received from business divestitures, net of cash relinquished.
Cash Flows from Financing Activities
Net cash flows from financing activities primarily include repurchases of common stock, debt activity, changes in vehicle floorplan payable-non-trade,
and proceeds from stock option exercises.
49