EXHIBIT 99.2
CENDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF FREE CASH FLOWS
(IN MILLIONS)
TWELVE MONTHS ENDED
MARCH 31,
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2001 2000
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Adjusted EBITDA(*) $ 1,579 (A) $ 1,722 (B)
Less: Move.com Group (77) (48)
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Adjusted EBITDA, excluding Move.com Group 1,656 1,770
Interest expense, net (C) (177) (173)
Minority interest, excluding tax benefit (D) (128) (92)
Tax payments (34) (45)
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CASH FLOW NET OF TAXES PAID 1,317 1,460
Tax refunds 14 185
Restructuring and other unusual payments (30) (62)
Working capital and other 34 (268)
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OPERATING CASH FLOW 1,335 1,315
Adjusted capital expenditures (E) (229) (219)
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FREE CASH FLOW 1,106 1,096
NON OPERATING ACTIVITIES:
Investments (F) (474) (53)
Acquisitions, net of cash acquired (1,106) (149)
Funding of litigation settlement trust (600) --
Net proceeds from sale of subsidiaries 4 2,565
Other (G) (89) (118)
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(2,265) 2,245
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FINANCING ACTIVITIES:
Net proceeds from (repayments on) borrowings (H) 1,126 (887)
Net issuances (repurchases) of equity securities and other 666 (1,327)
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1,792 (2,214)
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NET CHANGE IN CASH BEFORE MANAGEMENT AND MORTGAGE PROGRAMS 633 1,127
MANAGEMENT AND MORTGAGE PROGRAMS:
Net investment in vehicle-related assets (151) (390)
Net mortgage originations and sales 604 1,141
Net mortgage servicing rights (625) (548)
Net relocation advances 329 76
Net financing for assets of management programs 354 (960)
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511 (681)
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NET INCREASE IN CASH AND CASH EQUIVALENTS $ 1,144 $ 446
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(*) Adjusted EBITDA is defined as earnings before non-operating interest,
income taxes, depreciation and amortization, minority interest and equity
in Homestore.com, adjusted to exclude certain items which are of a
non-recurring or unusual nature and not measured in assessing segment
performance or are not segment specific.
(A) Excludes (i) a net gain related to the disposition of businesses ($405
million; (ii) a gain representing the recognition of a portion of the
Company's previously recorded deferred gain from the sale of its fleet
businesses due to the disposition of VMS Europe by Avis Group Holdings,
Inc. in August 2000 ($35 million); and (iii) a credit to reflect an
adjustment to the settlement charge recorded in the fourth quarter of
1998 for the PRIDES class action litigation primarily related to Rights
that expired unexercised ($14 million). Such amounts were partially
offset by (i) a charge to fund an irrevocable contribution to an
independent technology trust responsible for providing technology
initiatives for the benefit of current and future franchisees at Century
21, Caldwell Banker and ERA ($95 million); (ii) a charge in connection
with the creation of Travel Portal, Inc., a company that was created to
pursue the development of an online travel business ($85 million);
(iii) investigation-related costs and other charges in connection with
litigation asserting claims associated with accounting irregularities in
the former business units of CUC and outside of the principal common
stockholder class action lawsuit ($65 million); (iv) charges related to
the acquisition and integration of Avis Group ($8 million); (v) a
contribution to the Cendant Charitable Foundation ($7 million) and (vi)
charges incurred in connection with the postponement of the initial
public offering of Move.com common stock ($3 million).
(B) Excludes (i) a net gain related to the dispositions of businesses ($954
million) and (ii) a non-cash credit in connection with a change to the
original estimate of the number of Rights to be issued in connection
with the PRIDES settlement resulting from unclaimed and uncontested
Rights ($41 million). In addition, excludes (i) a charge associated
with the settlement of the principal common stockholder class action
lawsuit ($2.9 billion), (ii) charges in connection with restructuring
initiatives ($86 million), (iii) a charge to fund an irrevocable
contribution to an independent technology trust responsible for
completing the transition of the Company's lodging franchisees to a
Company-sponsored property management system ($23 million), (iv)
investigation-related costs ($22 million) and (v) costs primarily
resulting from the consolidation of European call centers in Cork,
Ireland ($2 million).
(C) Excludes non-cash interest recorded on zero coupon senior convertible
notes.
(D) Represents the before tax amounts of minority interest.
(E) Represents total capital expenditures exclusive of Move.com Group
capital expenditures ($18 million and $2 million in 2001 and 2000,
respectively).
(F) Represents investment activity of the Company, including cash payments
in 2001 associated with the independent technology trust responsible for
providing technology initiatives for the benefit of current and future
franchisees at Century 21, Coldwell Banker and ERA ($95 million) and the
creation of Travel Portal, Inc ($45 million).
(G) Includes net cash used in Move.com Group operations, the effects of
changes in exchange rates and cash provided by or used in discontinued
operations.
(H) Represents debt borrowings, net of debt repayments and financing costs
(including the issuance of a mandatorily redeemable preferred interest
in a subsidiary in the twelve months ending March 31, 2000).