Avis 2015 Annual Report Download - page 56

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48
Total assets exclusive of assets under vehicle programs increased 2% and now include assets associated with
the acquisitions of Maggiore, Scandinavia, Poland and Brazil (see Note 5 to our Consolidated Financial
Statements and “Liquidity and Capital Resources—Cash Flows”). Total liabilities exclusive of liabilities under
vehicle programs increased by 1% (see “Liquidity and Capital Resources—Debt and Financing Arrangements”
regarding the changes in our corporate financings).
Assets under vehicle programs and liabilities under vehicle programs increased primarily due to an increase in the
size of our vehicle rental fleet to accommodate increased rental demand and associated funding, as well as our
acquisitions. See “Liquidity and Capital Resources—Debt and Financing Arrangements” for a detailed account of
the change in our debt related to vehicle programs.
The decrease in stockholders’ equity is primarily due to the repurchase of our common stock and currency
translation adjustments, partially offset by our net income.
LIQUIDITY AND CAPITAL RESOURCES
Overview
Our principal sources of liquidity are cash on hand and our ability to generate cash through operations and
financing activities, as well as available funding arrangements and committed credit facilities, each of which is
discussed below.
During 2015, we issued $375 million of 5¼% Senior Notes due 2025 and used proceeds from this borrowing to
redeem the entire $223 million principal amount outstanding of our 9¾% Senior Notes due 2020 and fund a
portion of our acquisition of Maggiore. In addition, we repurchased approximately 8.8 million shares of our
outstanding common stock with cash generated from our operations. During 2015, we also had net borrowings
under vehicle programs of $490 million to fund an increase in our assets under vehicle programs.
Cash Flows
Year Ended December 31, 2015 vs. Year Ended December 31, 2014
The following table summarizes our cash flows:
Year Ended December 31,
2015 2014 Change
Cash provided by (used in):
Operating activities $ 2,584 $ 2,579 $ 5
Investing activities (2,830) (2,807) (23)
Financing activities 115 182 (67)
Effects of exchange rate changes (41) (23) (18)
Net change in cash and cash equivalents (172) (69) (103)
Cash and cash equivalents, beginning of period 624 693 (69)
Cash and cash equivalents, end of period $ 452 $ 624 $ (172)
Cash provided by operating activities was substantially unchanged during 2015 compared with 2014.
Cash used in investing activities was substantially unchanged during 2015 compared with 2014.
The decrease in cash provided by financing activities in 2015 compared with 2014 is primarily due to an increase
in our stock repurchases.
We anticipate that our non-vehicle property and equipment additions will be approximately $210 million in 2016.
As of December 31, 2015, we had approximately $140 million of authorized share repurchase capacity and in
January 2016, our Board of Directors increased the authorization by $300 million. We currently anticipate that we
will utilize most of such capacity to repurchase common stock in 2016.