AutoNation 2000 Annual Report Download - page 37

liabilities under SFAS 140 is effective for transactions occurring after March
31, 2001. Although additional interpretive guidance is expected from the FASB,
we do not expect the adoption of SFAS 140, as currently interpreted, will have
a material impact on our Consolidated Financial Statements. See further
discussion in Note 13, Asset Securitizations, of the Notes to Consolidated
Financial Statements.
In December 1999, the Securities and Exchange Commission issued Staff
Accounting Bulletin No. 101, "Revenue Recognition in Financial Statements"
("SAB 101"). SAB 101 provides guidance on the recognition, presentation and
disclosure of revenue in financial statements. Our revenue recognition policy
is in accordance with the provisions of SAB 101. Adoption of the provisions of
SAB 101 did not have a material impact on our consolidated financial position,
results of operations or cash flows as of and for the year ended December 31,
2000.
In 2000, the Emerging Issues Task Force of the Financial Accounting
Standards Board reached a consensus on EITF Issue No. 99-20, "Recognition of
Interest Income and Impairment on Purchased and Retained Beneficial Interests
in Securitized Financial Assets" ("EITF 99-20"). EITF 99-20 specifies, among
other things, how a transferor that retains an interest in a securitization
transaction should account for interest income and impairment. EITF 99-20 is
effective for fiscal quarters beginning after March 15, 2001. We plan to adopt
EITF 99-20 on April 1, 2001. We do not expect adoption of EITF 99-20 to have a
material impact on our consolidated financial position, results of operations
or cash flows.
In September 2000, the FASB issued an Exposure Draft entitled "Business
Combinations and Intangible Assets" which was revised in February 2001. The
Exposure Draft, if adopted, would prohibit the pooling method of accounting for
business combination transactions and would require that intangible assets in
excess of the fair value of net assets, goodwill, not be amortized. Goodwill
would be reduced only if found to be impaired or if associated with assets to
be sold or otherwise disposed. The FASB is expected to issue a final statement
in 2001. During 2000, we recorded amortization expense of approximately $73.7
million relating to goodwill. This statement, if issued as proposed, would
preclude future amortization of existing and any future goodwill on a
prospective basis from the date of issuance.
Forward-Looking Statements
Our business, financial condition, results of operations, cash flows and
prospects, and the prevailing market price and performance of our common stock,
may be adversely affected by a number of factors,
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including the matters discussed below. Certain statements and information set
forth in this Form 10-K or the Annual Report mailed to our stockholders with
this Form 10-K, as well as other written or oral statements made from time to
time by us or by our authorized executive officers on our behalf, constitute
"forward-looking statements" within the meaning of the Federal Private
Securities Litigation Reform Act of 1995. We intend for our forward-looking
statements to be covered by the safe harbor provisions for forward-looking
statements contained in the Private Securities Litigation Reform Act of 1995,
and we set forth this statement and these risk factors in order to comply with
such safe harbor provisions. You should note that our forward-looking
statements speak only as of the date of this Form 10-K or when made and we
undertake no duty or obligation to update or revise our forward-looking
statements, whether as a result of new information, future events or otherwise.
Although we believe that the expectations, plans, intentions and projections
reflected in our forward-looking statements are reasonable, such statements are