AutoNation 2003 Annual Report Download - page 63

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Table of Contents
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
At December 31, 2003 and 2002, current unearned premiums and loss reserves related to the Company’s reinsurance programs were
included in Other Current Liabilities and long-term unearned premiums and loss reserves were included in Other Liabilities in the
Consolidated Balance Sheets as follows:
2003 2002
Reinsurance Reserves
Unearned premiums — current portion $17.6 $25.7
Unearned premiums — long-term portion 19.6 41.2
Total unearned premiums $37.2 $66.9
Loss reserves — current portion $11.7 $13.5
Loss reserves — long-term portion .3 .6
Total loss reserves $12.0 $14.1
5. PROPERTY AND EQUIPMENT
A summary of property and equipment at December 31 is as follows:
2003 2002
Land $599.3 $574.2
Buildings and improvements 1,063.9 1,031.3
Furniture, fixtures and equipment 378.3 338.7
2,041.5 1,944.2
Less: accumulated depreciation (344.8) (265.8)
$1,696.7 $1,678.4
In 2003, the Company recognized a $27.5 million real estate impairment charge included in Other Losses (Gains) in the 2003
Consolidated Income Statement related to the write-down to fair value of three franchised underperforming new vehicle stores that currently
operate in converted used vehicle megastores.
6. INTANGIBLE ASSETS, NET
Intangible assets, net, at December 31 consist of the following:
2003 2002
Goodwill $3,012.0 $3,019.1
Franchise rights — indefinite-lived 142.4 132.8
Other intangibles 11.1 14.3
3,165.5 3,166.2
Less: accumulated amortization (270.9) (272.5)
$2,894.6 $2,893.7
7. INSURANCE
Under self-insurance programs, the Company retains various levels of aggregate loss limits, per claim deductibles and claims handling
expenses as part of its various insurance programs, including property and casualty and employee medical benefits. Costs in excess of this
retained risk per claim may be insured under various contracts with third party insurance carriers. The ultimate costs of these retained