AutoNation 2007 Annual Report Download - page 60

Download and view the complete annual report

Please find page 60 of the 2007 AutoNation annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

Table of Contents



The components of receivables, net of allowance for doubtful accounts, at December 31 are as follows:
 
Trade receivables $119.1 $ 111.0
Manufacturer receivables 139.9 158.7
Other 55.5 73.5
314.5 343.2
Less: Allowances (6.4) (6.3)
308.1 336.9
Contracts-in-transit and vehicle receivables 384.1 429.2
Income tax refundable (See Note 11) 21.9 28.9
Receivables, net $ 714.1 $795.0
Contracts-in-transit and vehicle receivables represent receivables from financial institutions for the portion of the vehicle sales price financed
by our customers.
 
The components of inventory at December 31 are as follows:
 
New vehicles $ 1,861.8 $ 1,856.3
Used vehicles 313.1 299.9
Parts, accessories, and other 150.8 148.8
$ 2,325.7 $ 2,305.0
Vehicle floorplan payable-trade totaled $1.7 billion at December 31, 2007, and $2.0 billion at December 31, 2006. 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 $459.9 million at December 31, 2007, and $221.4 million at
December 31, 2006, and represents amounts borrowed to finance the purchase of specific vehicle inventories with non-trade lenders. Changes in
vehicle floorplan payable-trade are reported as operating cash flows and changes in vehicle floorplan payable-non-trade are reported as financing
cash flows in the accompanying Consolidated Statements of Cash Flows. 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. As a result of this sale, we have classified new borrowings from GMAC subsequent to this transaction as vehicle floorplan payable-
non-trade, with related changes reflected as financing cash flows in the accompanying Consolidated Statements of Cash Flows. Accordingly, net
floorplan borrowings from GMAC since this transaction (totaling $231.5 million for 2007) are reflected as cash provided by financing
activities, while repayments in 2007 of amounts due to GMAC prior to this transaction continue to be reflected as cash used by operating
activities in the accompanying Consolidated Statements of Cash Flows.
Our floorplan facilities, which utilize LIBOR-based interest rates, averaged 6.3% for 2007 and 6.2% for 2006. 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. Our
58