AutoNation 2003 Annual Report Download - page 76

Table of Contents
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
17. OTHER COMPREHENSIVE INCOME (LOSS)
The changes in the components of other comprehensive income (loss), net of income taxes, are as follows for the years ended
December 31:
2003 2002 2001
Pre-Tax Tax Net Pre-Tax Tax Net Pre-Tax Tax Net
Amount Effect Amount Amount Effect Amount Amount Effect Amount
Unrealized gains (losses) on
restricted investments,
marketable securities, hedges
and interest-only strips $(12.0) $4.6 $(7.4) $10.3 $(3.8) $6.5 $(50.9) $19.8 $(31.1)
Reclassification of realized losses
(gains) — — — (6.0) 2.1 (3.9) 51.8 (20.1) 31.7
Other comprehensive income
(loss) $(12.0) $4.6 $(7.4) $4.3 $(1.7) $2.6 $.9 $(.3) $.6
The accumulated other comprehensive loss in the accompanying Consolidated Statements of Shareholders’ Equity and Comprehensive
Income (Loss) of $3.2 million at December 31, 2003 consists primarily of unrealized losses on hedges. The accumulated other
comprehensive gain of $4.2 million at December 31, 2002 includes unrealized gains on marketable securities and interest-only strips.
18. ACQUISITIONS AND DIVESTITURES
Businesses acquired through December 31, 2003 and accounted for under the purchase method of accounting are included in the
Consolidated Financial Statements from the date of acquisition.
During the years ended December 31, 2003, 2002 and 2001, the Company acquired various automotive retail businesses. The
Company paid approximately $45.9 million, $158.4 million and $69.7 million, respectively, in cash for these acquisitions, all of which were
accounted for under the purchase method of accounting. The Company also paid $3.2 million, $8.1 million and $22.3 million during the
years ended December 31, 2003, 2002 and 2001, respectively, in deferred purchase price for certain prior year automotive retail acquisitions.
During 2003 and 2002, the Company acquired thirteen and nine stores, respectively. At December 31, 2003 and 2002, the Company had
accrued approximately $6.8 million and $9.7 million, respectively, of deferred purchase price due to former owners of acquired businesses
included in Other Current Liabilities.
Purchase price allocations are tentative and subject to final adjustment 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:
2003 2002 2001
Property and equipment $11.7 $29.1 $24.0
Goodwill 13.3 16.8 10.7
Working capital (1.3) 14.5 (10.1)
Franchise rights — indefinite lived 22.7 97.4 35.4
Other intangibles subject to amortization — .5 —
Debt assumed — — 9.0
Other assets (liabilities) (.5) .1 .7
45.9 158.4 69.7
Cash paid in deferred purchase price 3.2 8.1 22.3
Cash used in business acquisitions, net of cash acquired $49.1 $166.5 $92.0
The Company anticipates that all of the goodwill recorded in 2003 and 2002 will be deductible for tax purposes.