AutoNation 2000 Annual Report Download - page 46

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AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (Continued)
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -- (Continued)
Other Current Assets
Other current assets consist primarily of restricted cash deposits related
to insurance programs totaling $160.8 million and $91.9 million at December 31,
2000 and 1999, respectively.
Investments
Investments consist of marketable securities and investments in businesses
accounted for under the equity-method. Marketable securities include
investments in debt and equity securities classified as available-for-sale and
are stated at fair value with unrealized gains and losses included in other
comprehensive income. Other-than-temporary declines in investment values are
recorded as a component of Other Income, Net in the Company's Consolidated
Income Statements. Fair value is estimated based on quoted market prices.
Equity-method investments represent investments in 50% or less owned
automotive-related businesses over which the Company has the ability to
exercise significant influence. The Company records its initial equity-method
investments at cost and subsequently adjusts the carrying amounts of the
investments for the Company's share of the earnings or losses of the investee
after the acquisition date as a component of Other Income, Net in the Company's
Consolidated Income Statements. The Company continually assesses whether
equity-method investments should be evaluated for possible impairment by use of
an estimate of the related undiscounted cash flows. The Company measures
impairment losses based upon the amount by which the carrying amount of the
asset exceeds the fair value.
A summary of investments at December 31 is as follows:
2000 1999
--------- -----------
Marketable securities ............. $ 5.2 $ 106.2
Equity-method investments ......... 33.6 69.6
------ --------
$ 38.8 $ 175.8
====== ========
Investments in marketable securities at December 31 are as follows:
2000
------------------------------------------------
Gross Gross Fair
Unrealized Unrealized Market
Cost Gains Losses Value
-------- ------------ ------------ -------
Corporate debt securities ......... $ .6 $ -- $-- $ .6
Equity securities ................. 3.1 1.5 -- 4.6