AutoNation 2015 Annual Report Download - page 72
Download and view the complete annual report
Please find page 72 of the 2015 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.-
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
-
109
-
110
-
111
-
112
-
113
-
114
-
115
-
116
-
117
-
118
-
119
-
120
-
121
-
122
-
123
-
124
-
125
-
126
 |
 |
Table of Contents
The components of inventory at December 31 are as follows:
New vehicles $ 2,888.1
$ 2,294.3
Used vehicles 539.7
437.6
Parts, accessories, and other 184.2
167.1
Inventory $ 3,612.0
$ 2,899.0
The components of vehicle floorplan payables at December 31 are as follows:
Vehicle floorplan payable - trade $ 2,565.8
$ 2,090.7
Vehicle floorplan payable - non-trade 1,161.3
1,006.5
Vehicle floorplan payable $ 3,727.1
$ 3,097.2
Vehicle floorplan payable-trade reflects amounts borrowed to finance the purchase of specific new vehicle inventories with the corresponding
manufacturers’ captive finance subsidiaries (“trade lenders”). Vehicle floorplan payable-non-trade represents amounts borrowed to finance the purchase of
specific new and, to a lesser extent, used vehicle inventories with non-trade lenders, as well as amounts borrowed under our secured used floorplan facilities.
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.
Our inventory costs are generally reduced by manufacturer holdbacks, incentives, floorplan assistance, and non-reimbursement-based manufacturer
advertising, while the related vehicle floorplan payables are reflective of the gross cost of the vehicle. The vehicle floorplan payables, as shown in the above
table, will generally also be higher than the inventory cost due to the timing of the sale of a vehicle and payment of the related liability.
Vehicle floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related
vehicles are sold. Our manufacturer agreements generally allow the manufacturer to draft against the new vehicle floorplan facilities so the lender directly
funds the manufacturer for the purchase of new vehicle inventory. Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related
receivables.
Our new vehicle floorplan facilities utilize LIBOR-based interest rates, which averaged 1.8% during 2015 and 1.8% during 2014. At December 31, 2015,
the aggregate capacity under our floorplan credit agreements with various lenders to finance our new vehicle inventory was approximately $4.3 billion, of
which $3.5 billion had been borrowed.
Our used vehicle floorplan facilities utilize LIBOR-based interest rates, which averaged 1.7% during 2015 and 1.7% during 2014. At December 31, 2015,
the aggregate capacity under our floorplan credit agreements with various lenders to finance a portion of our used vehicle inventory was $350.0 million, of
which $212.5 million had been borrowed. The remaining borrowing capacity of $137.5 million was limited to $127.1 million based on the eligible used
vehicle inventory that could have been pledged as collateral.
70