AutoNation 2001 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2001 AutoNation annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 97

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97

have not completed and do not expect to complete acquisitions at the
same pace as we had in the past. See further discussion under the
heading "Business Acquisitions and Divestitures".
- Non-core Divestitures: From 1999 through 2001, we divested of
various non-core assets and dealerships, including the Flemington
dealership group and our former outdoor media business for net
proceeds of $59.0 million and $89.0 million, respectively. See
further discussion under heading "Business Acquisitions and
Divestitures".
- Spin-Off of ANC Rental Corporation: In June 2000, we completed the
tax-free spin-off of our former automotive rental business. ANC
Rental declared bankruptcy in November 2001. We were called on to
perform under certain of our credit enhancements and guarantees and,
accordingly, in the fourth quarter of 2001 we incurred a pre-tax
charge of $20.0 million included in Income from Discontinued
Operations to reflect our assumption of these obligations. See
further discussion under the heading "Discontinued Business
Segments".
- Exit from Auto Loan Underwriting Businesses: In 2001, we recorded a
pre-tax charge of $85.8 million to reflect a write-down of
outstanding auto loans and related assets in our retail auto loan
portfolio and to cover costs associated with our exit from the auto
loan underwriting business. See further discussion under the heading
"Auto Loan and Lease Underwriting Activities".
- Restructuring and Impairment Charges: In 1999, we restructured
certain of our operations to exit our former used vehicle megastore
business and to reduce our corporate workforce. See further
discussion under the heading "Restructuring Activities".
- Share Repurchases: Since the inception of our Board-authorized
share repurchase programs in 1998 through December 31, 2001, we have
repurchased 155.0 million shares of our common stock for an
aggregate price of $1.7 billion, leaving approximately $260.3
million available for repurchases under the programs, including an
additional $250.0 million authorized in October 2001 by our Board of
Directors. See further discussion under the heading "Financial
Condition".
20
- Investment Write-down: In 2000, we recognized a pre-tax $30.0
million valuation write-down to an equity-method investment in a
privately held salvage and parts recycling business, as well as a
$5.0 million write-down to fair value of another equity-method
investment, subsequently sold in early 2001 at no additional gain or
loss.
- Sale of Republic Services, Inc.: In 1998, our former solid waste
services business completed an initial public offering of 36.1% of
its common stock. In 1999, we sold substantially all of our
remaining interests in Republic Services to the public. See further
discussion under the heading "Discontinued Business Segments".
The following table provides a detailed reconciliation of how certain
after-tax charges and gains have impacted reported Income (Loss) from Continuing
Operations for the periods indicated (in millions, except earnings per share
data):
2001 2000 1999
----------------- ----------------- --------------------
DILUTED DILUTED DILUTED
PER PER PER
DOLLARS SHARE DOLLARS SHARE DOLLARS SHARE(1)