Avis 2015 Annual Report Download - page 57

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49
Year Ended December 31, 2014 vs. Year Ended December 31, 2013
The following table summarizes our cash flows:
Year Ended December 31,
2014 2013 Change
Cash provided by (used in):
Operating activities $ 2,579 $ 2,253 $ 326
Investing activities (2,807) (2,234) (573)
Financing activities 182 76 106
Effects of exchange rate changes (23) (8) (15)
Net change in cash and cash equivalents (69) 87 (156)
Cash and cash equivalents, beginning of period 693 606 87
Cash and cash equivalents, end of period $ 624 $ 693 $ (69)
The increase in cash provided by operating activities during 2014 compared to 2013 is principally due to
increased revenues and our continued cost reduction efforts.
The increase in cash used in investing activities during 2014 compared with 2013 is primarily due to increased
vehicle purchases and our Budget Licensee Acquisitions during 2014, partially offset by the acquisition of Zipcar
in 2013.
The increase in cash provided by financing activities in 2014 compared with 2013, primarily reflects an increase in
borrowings under vehicle programs to fund an increase in vehicle assets in 2014, partially offset by increased
corporate borrowings to fund the purchase of Zipcar in 2013 and an increase in common stock repurchases in
2014.
Debt and Financing Arrangements
At December 31, 2015, we had approximately $12.3 billion of indebtedness (including corporate indebtedness of
approximately $3.5 billion and debt under vehicle programs of approximately $8.9 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 2015 2014 Change
November 2017 $ 300 $ 300 $ —
Floating Rate Senior Notes (a) December 2017 249 248 1
Floating Rate Term Loan (b) March 2019 970 980 (10)
9¾% Senior Notes March 2020 — 223 (223)
6% Euro-denominated Senior Notes (c) March 2021 502 561 (59)
June 2022 400 400 —
5½% Senior Notes April 2023 674 674 —
5¼% Senior Notes March 2025 375 — 375
Other(d) 46 34 12
Deferred financing fees (55) (67) 12
Total $ 3,461 $ 3,353 $ 108
__________
(a) The interest rate on these notes is equal to three-month LIBOR plus 275 basis points, for an aggregate rate of 3.16% at
December 31, 2015; the Company has entered into an interest rate swap to hedge its interest rate exposure related to
these notes at an aggregate rate of 3.58%.
(b) The floating rate term loan is part of the Company’s senior revolving credit facility, which is secured by pledges of capital
stock of certain subsidiaries of the Company, and liens on substantially all of the Company’s intellectual property and
certain other real and personal property. As of December 31, 2015, the floating rate term loan due 2019 bears interest at