AutoNation 2005 Annual Report Download - page 38

Table of Contents
During 2005, we repaid $164.4 million of amounts outstanding under our mortgage facilities, including prepayments totaling
$154.0 million. During the year ended December 31, 2003, we drew amounts totaling $183.6 million under our mortgage facilities.
Cash flows from financing activities include changes in vehicle floorplan payable-non-trade (vehicle floorplan payables with lenders other
than the automotive manufacturers’ captive finance subsidiaries for that franchise) totaling $24.0 million, $(143.3) million and
$(121.3) million for the years ended December 31, 2005, 2004 and 2003, respectively.
During the years ended December 31, 2005, 2004 and 2003, proceeds from the exercises of stock options were $112.8 million,
$94.2 million and $118.1 million, respectively.
During 2005 and 2004, we repurchased $123.1 million and $3.4 million (face value) of our 9.0% senior unsecured notes at an average
price of 110.5% and 114.3% of face value or $136.0 million and $3.9 million, respectively.
Other cash used in financing activities totaled $7.8 million in 2003 and primarily includes upfront premium amounts paid in conjunction
with interest rate hedge transactions.
Liquidity
In July 2005, we terminated our existing credit facilities with aggregate borrowing capacity of $500.0 million, and entered into a new five-
year revolving credit facility with an aggregate borrowing capacity of $600.0 million. We believe that our funds generated through future
operations and availability of borrowings under our secured floorplan facilities (for new vehicles) and revolving credit facility will be sufficient
to service our debt and fund our working capital requirements, pay our tax obligations, commitments and contingencies and meet any
seasonal operating requirements for the foreseeable future. We do not foresee any difficulty in continuing to comply with covenants of our
various financing facilities. At December 31, 2005, we have available capacity under our revolving credit facility and available cash totaling
approximately $750 million, net of outstanding letters of credit.
We have not declared or paid any cash dividends on our common stock during our three most recent fiscal years. We do not anticipate
paying cash dividends in the foreseeable future. The indenture for our senior unsecured notes restricts our ability to declare cash dividends.
Contractual Payment Obligations
The following table summarizes our payment obligations under certain contracts at December 31, 2005 (in millions):
Payments Due by Period
Less Than More Than
Total one Year 1-3 Years 3-5 Years 5 Years
Total vehicle floorplan payable (Note 3)* $2,540.0 $2,540.0 $ — $ — $ —
Notes payable and long-term debt (Note 7)* 525.0 40.6 425.8 58.6 —
Operating lease commitments (Note 8)* 470.5 57.7 100.2 74.7 237.9
Acquisition purchase price commitments 1.0 1.0 — — —
Purchase obligations 116.6 39.1 34.0 27.5 16.0
Total $3,653.1 $2,678.4 $560.0 $160.8 $253.9
* See Notes to Consolidated Financial Statements.
In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as
financial guarantees of our performance. At December 31, 2005, surety bonds, letters of credit and cash deposits totaled $120.3 million,
including $87.6 million letters of credit. We do not currently provide cash collateral for outstanding letters of credit. We have negotiated a letter
of credit sub-limit as part
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