AutoNation 2000 Annual Report Download - page 26

stock to AutoNation's stockholders as a tax-free dividend. As a result of the
spin-off, AutoNation stockholders received one share of ANC Rental common stock
for every eight shares of AutoNation common stock owned as of the June 16, 2000
record date. As discussed in Note 11, Discontinued Operations, of the Notes to
Consolidated Financial Statements, ANC Rental has been accounted for as
discontinued operations in the accompanying Consolidated Financial Statements
and accordingly, the operating results of ANC Rental have been classified as
discontinued operations in the accompanying Consolidated Financial Statements.
In July 1998, our former solid waste subsidiary, Republic Services, Inc.,
completed an initial public offering of 36.1% of its common stock. In May 1999,
we sold substantially all of our interest in Republic Services in a public
offering. As discussed in Note 11, Discontinued Operations, of the Notes to
Consolidated Financial Statements, our former solid waste services segment has
been accounted for as discontinued operations and accordingly, the operating
results of Republic Services have been classified as discontinued operations in
the accompanying Consolidated Financial Statements.
See Note 11, Discontinued Operations, of the Notes to Consolidated
Financial Statements, for further discussion of these discontinued operations.
Business Acquisitions and Divestitures
From 1996 through 1999, we aggressively expanded our automotive retail
operations through the acquisition of franchised automotive dealerships.
However, we did not complete in 2000 and do not expect to complete in 2001
acquisitions at the same pace as we have in the past. Future acquisitions will
primarily target single dealerships or small dealership groups focused in key
existing markets.
During the year ended December 31, 2000, we acquired various automotive
retail businesses. We paid approximately $190.9 million in cash for these
acquisitions, all of which were accounted for under the purchase method of
accounting. During 2000, we also paid approximately $122.4 million in deferred
purchase price for certain prior year automotive retail acquisitions. At
December 31, 2000, we accrued approximately $24.5 million of deferred purchase
price due to former owners of acquired businesses.
As described below under the heading "Restructuring Activities", we have
been divesting of certain non-core franchised automotive dealerships. During
2000, we received approximately $89.7 million of cash from the divestiture of
certain dealerships. We have signed a definitive agreement to sell our
Flemington dealer group. We expect to complete the sale in the second quarter
of 2001. Following the sale of the Flemington group, we will have substantially
completed our non-core dealership divestiture plan.
In November 2000, we completed the divestiture of our outdoor media
business for a purchase price of approximately $104.0 million. In connection
with the sale, we entered into a prepaid $15.0 million advertising agreement
and therefore, we received net proceeds of $89.0 million. A pre-tax gain of
$53.5 million was recognized on the sale.
During the year ended December 31, 1999, we acquired various automotive
retail businesses. We paid approximately $879.1 million in cash for these
acquisitions, all of which were accounted for under the purchase method of
accounting. During 1999, we also paid approximately $34.9 million in deferred
purchase price for certain prior year automotive retail acquisitions. During
1999, we received approximately $131.3 million of cash from the divestiture of
various automotive dealerships.