EXHIBIT 99.1
CENDANT CORPORATION AND SUBSIDIARIES
CONSOLIDATED SCHEDULE OF FREE CASH FLOW
(IN MILLIONS)
YEAR ENDED
DECEMBER 31,
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2000 1999
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Adjusted EBITDA $ 1,543(A) $ 1,783(B)
Less: Move.com Group (94) (22)
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Adjusted EBITDA, excluding Move.com Group 1,637 1,805
Interest expense (145) (196)
Minority interest, excluding tax benefit (133)(C) (90)(C)
Tax payments (42) (42)
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CASH FLOW NET OF TAXES PAID 1,317 1,477
Tax refunds 109 88
Restructuring and other unusual payments (46) (49)
Working capital and other (21) (55)
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OPERATING CASH FLOW 1,359 1,461
Adjusted capital expenditures (199)(D) (252)(D)
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FREE CASH FLOW 1,160 1,209
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NON OPERATING ACTIVITIES:
Investments (318) (45)
Acquisitions, net of cash acquired (136) (205)
Funding of litigation settlement trust (350) -
Net proceeds from sale of subsidiaries,
net of investment in leased vehicles 4 2,591
Other (141) (E) (106)(E)
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(941) 2,235
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FINANCING ACTIVITIES:
Net repayments on borrowings (522) (F) (494)(F)
Net issuance (repurchase) of equity securities 313 (2,736)
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(209) (3,230)
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NET CHANGE IN CASH BEFORE MANAGEMENT AND MORTGAGE PROGRAMS 10 214
MANAGEMENT & MORTGAGE PROGRAMS
Net mortgage originations and sales 385 2,001
Net mortgage servicing rights (694) (571)
Net relocation advances 372 80
Net financing for assets of management programs (274) (1,558)
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(211) (48)
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NET CHANGE IN CASH AND CASH EQUIVALENTS $ (201) $ 166
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(A) Excludes (i) charges in connection with restructuring and other
initiatives ($86 million); (ii) losses related to the dispositions of
businesses ($43 million); (iii) investigation-related costs ($23
million); (iv) 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 ($20 million) and (v) charges incurred in connection with the
postponement of the initial public offering of Move.com common stock
($3 million). Such amounts were partially offset by (i) a non-cash
credit incurred 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) and (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).
(B) Excludes (i) charges associated with the agreement to settle the
principal common stockholder class action lawsuit ($2,894 million);
(ii) charges in connection with the transition of the Company's
lodging franchisees to a Company sponsored property managment system
($23 million); (iii) investigation-related costs ($21 million); (iv)
termination of a proposed acquisition costs ($7 million) and (v)
charges principally related to the consolidation of European call
centers in Ireland ($2 million). Such amounts were partially offset by
a net gain related to the dispositions of businesses ($967 million).
(C) Represents the before tax amounts of minority interest.
(D) Represents total capital expenditures exclusive of Move.com Group
capital expenditures ($18 million in 2000 and $2 million in 1999).
(E) 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.
(F) Represents debt repayments, net of proceeds received from borrowings
(including the issuance of a mandatorily redeemable preferred interest
in a subsidiary in 2000).