AutoNation 2015 Annual Report Download - page 79

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Table of Contents
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
In the ordinary course of business, we are subject to numerous laws and regulations, including automotive, environmental, health and safety, and other
laws and regulations. We do not anticipate that the costs of such compliance will have a material adverse effect on our business, consolidated results of
operations, cash flows, or financial condition, although such outcome is possible given the nature of our operations and the extensive legal and regulatory
framework applicable to our business.
Further, we expect that new laws and regulations, particularly at the federal level, in other areas may be enacted, which could also materially adversely
impact our business. We do not have any material known environmental commitments or contingencies.

A summary of shares repurchased under our share repurchase program authorized by our Board of Directors follows:
Shares repurchased 3.9
9.4
1.1
Aggregate purchase price $ 235.1
$ 485.1
$ 53.5
Average purchase price per share $ 60.49
$ 51.59
$ 47.37
From January 1, 2016 through February 8, 2016, we repurchased 3.6 million shares for an aggregate purchase price of $160.3 million (average purchase
price per share of $44.79). As of February 8, 2016, $135.3 million remained available for share repurchases under our stock repurchase limit most recently
authorized by our Board of Directors.
Our Board of Directors authorized the retirement of 43.0 million shares of our treasury stock in October 2015, which assumed the status of authorized but
unissued shares. Upon the retirement of treasury stock, it is our policy to charge the excess of the cost of the treasury stock over its par value entirely to
additional paid-in capital. Any amounts exceeding additional paid-in capital are charged to retained earnings. This retirement had the effect of reducing
treasury stock and issued common stock, which includes treasury stock. Our common stock, additional paid-in capital, retained earnings, and treasury stock
accounts were adjusted accordingly. There was no impact to shareholders’ equity or outstanding common stock.
We have 5.0 million authorized shares of preferred stock, par value $0.01 per share, none of which are issued or outstanding. The Board of Directors has
the authority to issue the preferred stock in one or more series and to establish the rights, preferences, and dividends.
A summary of shares of common stock issued in connection with the exercise of stock options follows:
Shares issued 1.3
1.7
1.1
Proceeds from the exercise of stock options $ 30.0
$ 35.1
$ 22.7
Average exercise price per share $ 23.33
$ 20.50
$ 20.31
77