AutoNation 2003 Annual Report Download - page 22

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Table of Contents
has been arranged. Revenue on finance and insurance products represents commissions earned by us for: (i) loans and leases placed with
financial institutions in connection with customer vehicle purchases financed and (ii) vehicle protection products sold. An estimated liability
for chargebacks against revenue recognized from sales of finance and vehicle protection products is established during the period in which the
related revenue is recognized. We may also participate in future underwriting profit, pursuant to retrospective commission arrangements, that
would be recognized over the life of the policies. Rebates, holdbacks, floorplan assistance and certain other dealer credits received from
manufacturers are recorded as offsets to the cost of the vehicle and recognized into income upon the sale of the vehicle or when earned under
a specific manufacturer program, whichever is later. In the future, should changes in conditions cause us to determine that these criteria
have not been met, revenue recognized for any reporting period could be adversely affected.
Other — Additionally, significant estimates have been made by us in the accompanying Consolidated Financial Statements including
allowances for doubtful accounts, used vehicles and parts inventory valuations reserves, reserves for self-insurance programs, reserves for
legal proceedings, and reserves for estimated tax liabilities.
20