AutoNation 2001 Annual Report Download - page 78

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accounting. The Company also paid $22.3 million, $122.4 million and $34.9
million, respectively, in deferred purchase price for certain prior year
automotive retail acquisitions. During 2001, the Company acquired two
dealerships. At December 31, 2001, the Company had accrued approximately $11.6
million of deferred purchase price due to former owners of acquired businesses
included in Other Current Liabilities.
Purchase price allocations are subject to final adjustment for 2001 due to
their closing date. Purchase price allocations for business combinations
accounted for under the purchase method of accounting related to continuing
operations for the years ended December 31 were as follows:
2001 2000 1999
----- ------- ------
Property and equipment...................................... $24.0 $ 21.9 $145.5
Goodwill and other intangibles not subject to
amortization.............................................. 46.1 169.0 928.7
Working capital............................................. 3.7 111.5 464.3
Debt assumed................................................ (4.8) (109.2) (623.8)
Other assets (liabilities).................................. .7 (2.3) (35.6)
----- ------- ------
Cash used in business acquisitions, net of cash acquired.... $69.7 $ 190.9 $879.1
===== ======= ======
The Company anticipates that all of the goodwill recorded in 2001 will be
deductible for tax purposes.
71
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
The Company's unaudited pro forma consolidated results of continuing
operations assuming acquisitions accounted for under the purchase method of
accounting had occurred at January 1, 2000 are as follows for the years ended
December 31:
2001 2000
--------- ---------
Revenue..................................................... $20,080.8 $21,319.6
Income from continuing operations........................... $ 247.0 $ 331.6
Diluted earnings per share from continuing operations....... $ .74 $ .92
The unaudited pro forma results of continuing operations are presented for
informational purposes only and may not necessarily reflect the future results
of operations of the Company or what the results of operations would have been
had the Company owned and operated these businesses as of the beginning of each
period presented.
As described in Note 13, Restructuring Activities and Impairment Charges,
the Company has been divesting of certain non-core franchised automotive
dealerships. During the year ended December 31, 2001, the Company received $61.2
million of cash from the divestiture of certain automotive dealerships. In April
2001, the Company completed the sale of its Flemington dealer group for net
proceeds of $59.0 million. The resulting gain of approximately $19.0 million has
been included in Other Gains in the accompanying 2001 Consolidated Income
Statement. Gains and losses on other divestitures were not material in 2001.
During the year ended December 31, 2000, the Company received $89.7 million
of cash from the divestiture of certain automotive dealerships. Gains and losses