AutoNation 2001 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 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

---------------
(1) Includes $19.7 million of reserves that had been established on these
properties prior to the 1999 restructuring and impairment charges recorded.
66
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The following summarizes the components of the $20.4 million credited to
income during the year ended December 31, 2000:
PROPERTIES PLACED BACK NET GAIN ON ADDITIONAL
INTO SERVICE OR RETAINED SOLD PROPERTIES IMPAIRMENT CHARGES OTHER TOTAL
------------------------- --------------- ------------------ ----- ------
Asset reserves:
Asset impairment................ $(23.2) $(3.4) $11.6 $ -- $(15.0)
Accrued liabilities:
Property lease residual value
guarantees.................... (13.0) (1.8) -- -- (14.8)
Severance and other exit
costs......................... -- -- -- 9.4 9.4
------ ----- ----- ---- ------
$(36.2) $(5.2) $11.6 $9.4 $(20.4)
====== ===== ===== ==== ======
During 2000, certain events occurred which caused the Company to
re-evaluate its plans with respect to various retail properties. As a result,
certain megastore properties were placed back in service and the Company decided
to retain certain dealerships that had been held for sale. Accordingly, based
upon the Company's re-evaluation of the fair values of the properties, the
Company determined that the asset impairment and lease residual value reserves
for these properties were no longer necessary and the Company was required to
reverse the related estimated reserves totaling $36.2 million back into income.
An additional impairment charge of $11.6 million was recognized primarily
related to a decision in 2000 to close one additional megastore property as part
of the overall restructuring plan.
14. INCOME TAXES
The components of the provision for income taxes from continuing operations
for the years ended December 31 are as follows:
2001 2000 1999
------ ------ ------
Current:
Federal................................................... $186.3 $101.3 $108.4
State..................................................... 15.6 4.3 22.8
Federal and state deferred.................................. (45.8) 91.3 (111.2)
Change in valuation allowance............................... (.3) -- (16.0)
------ ------ ------
Provision for income taxes.................................. $155.8 $196.9 $ 4.0
====== ====== ======
A reconciliation of the provision for income taxes calculated using the
statutory federal income tax rate to the Company's provision for income taxes
from continuing operations for the years ended December 31 is as follows:
2001 2000 1999
------ ------ ------