AutoNation 2003 Annual Report Download - page 71

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Table of Contents
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
Through 2001, the Company sold installment loan finance receivables in securitization transactions through unrelated financial
institutions. When the Company sold receivables in these securitization transactions, it retained interest-only strips, one or more
subordinated tranches, servicing rights, and cash reserve accounts, all of which were classified as investments in securitizations. Finance
receivables due within one year totaling $29.9 million at December 31, 2002 are classified as Receivables, Net in the accompanying
Consolidated Balance Sheet. Finance receivables due after one year totaling $63.0 million at December 31, 2002, are classified as Other
Assets in the accompanying 2002 Consolidated Balance Sheet.
Finance receivables consist of the following at December 31:
2003 2002
Finance leases $ — $8.4
Installment loans — 37.9
Investments in securitizations — 46.6
Total finance receivables $ — $92.9
13. RESTRUCTURING ACTIVITIES AND IMPAIRMENT CHARGES
During 1999, the Company approved a restructuring plan to exit the used vehicle megastore business and reduce the corporate
workforce. Approximately 2,000 positions were eliminated as a result of the restructuring plan of which 1,800 were megastore positions and
200 were corporate positions. These restructuring activities resulted in pre-tax charges of $443.7 million in 1999. The restructuring plan also
included divesting of certain non-core franchised stores. During the year ended December 31, 2001, the Company received $2.2 million of
cash from the divestiture of certain automotive stores as part of the Company’s 1999 restructuring activities. Gains and losses on
divestitures were included in Restructuring and Related Impairment Charges (Recoveries) Net, in the accompanying Consolidated Income
Statements and were not material.
The Company continues to actively market and dispose of its closed megastores and other properties through sales to third parties. At
December 31, 2003, properties held-for-sale, net totaled $59.3 million including properties with total asset value of $40.9 million (net of
$45.6 million restructuring and impairment charges), which remain to be sold of the total $285.3 million identified as part of the restructuring
plan. At December 31, 2002, properties held-for-sale, net totaled $59.9 million, including properties with total asset value of $49.8 million
(net of $62.8 million restructuring and impairment charges) remained. Restructuring and impairment charges are treated as a direct
reduction of the carrying amounts of related assets. The
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