AutoNation 2001 Annual Report Download - page 79

on divestitures were included in Restructuring and Impairment Charges
(Recoveries) Net, in the accompanying Consolidated Income Statements and were
not material during 2000.
In November 2000, the Company completed the divestiture of its outdoor
media business for a purchase price of approximately $104.0 million. In
connection with the sale, the Company entered into a prepaid $15.0 million
advertising agreement and therefore, received net proceeds of $89.0 million. The
Company recognized a pre-tax gain of $53.5 million on the sale which has been
included in Other Income (Expense), Net in the accompanying 2000 Consolidated
Income Statement.
Cash received from the divestiture of franchised automotive dealerships in
1999 was $131.3 million. Gains and losses on divestitures, other than those
recorded in the Company's 1999 restructuring and impairment charges, were not
material in 1999.
Revenue for the operations disposed or to be disposed was $302.0 million,
$1.1 billion and $2.3 billion during 2001, 2000 and 1999, respectively.
Operating income (loss) for the operations disposed or to be disposed was $(2.7)
million, $13.6 million and $8.2 million for the years ended December 31, 2001,
2000 and 1999, respectively.
As of December 31, 2001, the Company had announced agreements to purchase
several automotive dealerships. While these acquisitions did not close until
early 2002, they did represent acquisition purchase price commitments of
approximately $129.2 million as of December 31, 2001.
19. RELATED PARTY TRANSACTIONS
The following is a summary of agreements and transactions among certain
related parties and the Company. It is the Company's policy that transactions
with related parties must be on fair and reasonable terms that are no less
favorable to it than those that would be available in an arm's length
transaction with an unrelated party. Based on the Company's experience, it
believes that all of the transactions described below met that standard at the
time the transactions were effected.
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AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS -- (CONTINUED)
Mr. Huizenga, the Company's Chairman of the Board of Directors, owns the
Miami Dolphins and Pro Player Stadium, a professional sports stadium in South
Florida. In 2001, 2000 and 1999, the Company paid an aggregate of approximately
$.4 million, $.3 million and $.8 million, respectively, to the Miami Dolphins
and Pro Player Stadium in exchange for certain marketing services, including the
rental of the stadium for an off-site used vehicle sale event for its
dealerships, and for the use of executive suites and tickets to events at Pro
Player Stadium. In addition, in 1999, the Miami Dolphins and Pro Player Stadium
provided signage within Pro Player Stadium with a fair market value of
approximately $.1 million at no cost to the Company.
The Company leases an executive suite at the National Car Rental Center, a
professional sports arena in Broward County, Florida, that was leased by Boca
Resorts, Inc. Mr. Huizenga is the Chairman of the Board of Boca Resorts and
beneficially owns approximately 18% of Boca Resorts' outstanding stock. Mr.
Hudson, the Company's Vice Chairman of the Board of Directors, and Mr. Johnson,
a Company Director, are also Directors of Boca Resorts and own approximately 3%
of Boca Resorts' outstanding common stock in the aggregate. Under the suite
lease agreement, the Company paid Boca Resorts approximately $.1 million during
2001, 2000 and 1999, plus incidental costs. In July 2001, Boca Resorts sold the
Florida Panthers, the National Hockey League franchise that plays at the
National Car Rental Center, and transferred its interest in the arena. Boca
Resorts also owns and operates various resort hotels, including a hotel in Fort
Lauderdale, Florida, at which the Company has hosted from time to time meetings