Avis 2013 Annual Report Download - page 61

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51
Year Ended December 31, 2012 vs. Year Ended December 31, 2011
The following table summarizes our cash flows:
Year Ended December 31,
2012 2011 Change
Cash provided by (used in):
Operating activities $ 1,889 $ 1,578 $ 311
Investing activities (2,073) (2,373) 300
Financing activities 250 424 (174)
Effects of exchange rate changes 6(6)12
Net change in cash and cash equivalents 72 (377) 449
Cash and cash equivalents, beginning of period 534 911 (377)
Cash and cash equivalents, end of period $ 606 $ 534 $ 72
During 2012, we generated more cash from operating activities compared with 2011, primarily due to improved
operating results.
The decrease in cash used in investing activities in 2012 compared with 2011 primarily reflects a decrease in
acquisitions, as Avis Europe was purchased in 2011, partially offset by an increase in net purchases of vehicles as
a result of the inclusion of Avis Europe in our results for the full year in 2012 compared with only three months in
2011.
The decrease in cash provided by financing activities in 2012 compared with 2011 principally reflects an $180
million increase in the net payments on corporate borrowings and related activity.
Debt and Financing Arrangements
At December 31, 2013, we had approximately $10.7 billion of indebtedness (including corporate indebtedness of
approximately $3.4 billion and debt under vehicle programs of approximately $7.3 billion). We use various
hedging strategies, including derivative instruments, to manage a portion of the risks associated with our floating
rate debt.
Corporate indebtedness consisted of:
As of December 31,
Maturity Date 2013 2012 Change
Floating Rate Senior Notes May 2014 $ — $ 250 $ (250)
3½% Convertible Notes (a) October 2014 66 128 (62)
Floating Rate Term Loan (b) May 2016 — 49 (49)
November 2017 300 300 —
Floating Rate Senior Notes (c) December 2017 247 — 247
March 2018 — 446 (446)
8¼% Senior Notes January 2019 691 730 (39)
Floating Rate Term Loan (b) (d) March 2019 989 689 300
9¾% Senior Notes March 2020 223 250 (27)
6% Euro-denominated Senior Notes March 2021 344 — 344
5½% Senior Notes April 2023 500 — 500
3,360 2,842 518
Other 34 63 (29)
Total $ 3,394 $ 2,905 $ 489
__________
(a) The 3½% Convertible Notes due 2014 are convertible by the holders into approximately 4 million shares of our common
stock as of December 31, 2013.