Avis 2011 Annual Report Download - page 44

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38
Cash Flows
Year Ended December 31, 2011 vs. Year Ended December 31, 2010
At December 31, 2011, we had $534 million of cash on hand, a decrease of $377 million from $911 million at December 31,
2010. The following table summarizes such decrease:
Year Ended December 31,
2011 2010 Change
Cash provided by (used in):
Operating activities $ 1,578 $ 1,640 $ (62)
Investing activities (2,373) (1,603) (770)
Financing activities 424 380 44
Effects of exchange rate changes (6) 12 (18)
Net change in cash and cash equivalents $ (377) $ 429 $ (806)
During 2011, we generated $62 million less cash from operating activities compared with 2010. This change principally
represented the absence of the 2010 reimbursement from Realogy and Wyndham.
We used $770 million more cash in investing activities during 2011 compared with 2010. This change primarily reflects the
Avis Europe Acquisition. The cash used for the acquisition was slightly offset by the activities of our vehicle programs, in
which we used $74 million less cash in 2011, primarily due to an increase in proceeds received on the disposition of vehicles.
We anticipate that our non-vehicle capital expenditure will approximate $125 million in 2012.
We generated $44 million more cash from financing activities during 2011 compared with 2010. This change primarily
reflects a $526 million net increase in cash provided from our vehicle programs’ financing activities due primarily to
increased borrowings in 2011, partially offset by a net decrease in cash provided by proceeds from and payments on
corporate borrowings of $441 million in 2011 compared to 2010 due primarily to higher proceeds raised in 2010 and
subsequently used for corporate debt repayments.
Year Ended December 31, 2010 vs. Year Ended December 31, 2009
At December 31, 2010, we had $911 million of cash on hand, an increase of $429 million from $482 million at December 31,
2009. The following table summarizes such increase:
Year Ended December 31,
2010 2009 Change
Cash provided by (used in):
Operating activities $ 1,640 $ 1,491 $ 149
Investing activities (1,603) 166 (1,769)
Financing activities 380 (1,465) 1,845
Effects of exchange rate changes 12 32 (20)
Net change in cash and cash equivalents $ 429 $ 224 $ 205
In 2010, we generated $149 million more cash from operating activities compared with 2009. The change principally resulted
from the reimbursement from Wyndham for the use of certain of our tax attributes in connection with the conclusion of the
IRS audit and improved operating results, partially offset by the termination of interest rate swaps in 2010.
We used approximately $1.8 billion more cash in investing activities in 2010 compared with 2009. This change primarily
reflects the activities of our vehicle programs, which used approximately $1.3 billion more cash to purchase vehicles and
received $825 million less in proceeds from the disposition of vehicles. The use of cash in investing activities in 2010 reflects
a more typical pattern for us, whereas the 2009 result reflects the effects of our reducing our fleet size in response to
particularly weak economic conditions and demand for travel services.
We generated approximately $1.8 billion more cash from financing activities in 2010 compared with 2009. This change
primarily reflects an approximately $1.8 billion net increase in cash provided from our vehicle programs’ financing activities
due to our use of cash in financing activities in 2009 for significant debt repayment associated with reducing our fleet size in
response to weak economic conditions as discussed above.