Avis 2010 Annual Report Download - page 53

Table of Contents
Year Ended December 31, 2009 vs. Year Ended December 31, 2008
At December 31, 2009, we had $482 million of cash on hand, an increase of $224 million from $258 million at December 31, 2008. The
following table summarizes such increase:
In 2009, we generated $213 million less cash from operating activities than in 2008 as a result of having a year-over-year increase in earnings
before income taxes and impairment costs that was smaller than the year-over-year reduction in depreciation expense.
We used approximately $2.3 billion less cash in investing activities during 2009 compared with 2008. This change primarily reflects the
activities of our vehicle programs, which (i) used approximately $1.8 billion less cash to purchase vehicles during the year as we strategically
maintained a smaller car rental fleet and (ii) recorded a $422 million increase in proceeds on disposition of vehicles. Additionally, we reduced
spending by $144 million related to acquisitions of vehicle rental franchises, property, plant and equipment and other items during 2009.
We generated approximately $1.9 billion less cash from financing activities during 2009 compared to 2008. This change primarily reflects an
approximately $2.3 billion net decrease in cash provided under our vehicle programs’ financing activities, primarily due to reduced vehicle-
backed debt borrowings offset by $311 million in net proceeds primarily from the issuance of our convertible notes, a warrant transaction and a
convertible note hedge in 2009.
Debt and Financing Arrangements
At December 31, 2010, we had approximately $7.0 billion of indebtedness (including corporate indebtedness of approximately $2.5 billion and
debt under vehicle programs of approximately $4.5 billion).
48
Year Ended December 31,
2009
2008
Change
Cash provided by (used in):
Operating activities
$
1,491
$
1,704
$
(213
)
Investing activities
166
(2,096
)
2,262
Financing activities
(1,465
)
463
(1,928
)
Effects of exchange rate changes
32
(27
)
59
Net change in cash and cash equivalents
$
224
$
44
$
180