AutoNation 2000 Annual Report Download - page 43

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repair centers in most key markets.
On June 30, 2000, the Company completed the spin-off of its former
automotive rental businesses, organized under ANC Rental Corporation ("ANC
Rental"), by distributing 100% of ANC Rental's common 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, the Company's former automotive
rental segment has been accounted for as discontinued operations in the
accompanying Consolidated Financial Statements and accordingly, the net assets
and operating results of ANC Rental for the periods prior to disposition have
been classified as discontinued operations in the accompanying Consolidated
Financial Statements.
In July 1998, the Company's former solid waste subsidiary, Republic
Services, Inc., completed an initial public offering of 36.1% of its common
stock. In May 1999, the Company sold substantially all of its interest in
Republic Services in a public offering. As discussed in Note 11, Discontinued
Operations, the Company's former solid waste services segment has been
accounted for as discontinued operations in the accompanying Consolidated
Financial Statements and accordingly, operating results of Republic Services
for the periods prior to disposition have been classified as discontinued
operations in the accompanying Consolidated Financial Statements.
Basis of Presentation
The accompanying Consolidated Financial Statements include the accounts of
AutoNation, Inc. and its subsidiaries. The Company operates in a single
industry segment, automotive retailing. All intercompany accounts and
transactions have been eliminated. In order to maintain consistency and
comparability between periods presented, floorplan interest expense,
depreciation and amortization and certain other amounts have been reclassified
from the previously reported financial statements to conform to the financial
statement presentation of the current period.
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States requires management to make
estimates and assumptions that affect the reported amounts of assets and
liabilities and disclosure of contingent assets and liabilities at the date of
the financial statements and the reported amounts of revenue and expenses
during the reporting period. Actual results could differ from those estimates.
43
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -- (Continued)
Receivables
The components of receivables, net of allowance for doubtful accounts, at
December 31 are as follows:
2000 1999