AutoNation 2003 Annual Report Download - page 78

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Table of Contents
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
The Company’s unaudited pro forma consolidated results of continuing operations assuming 2003 and 2002 acquisitions had occurred at
January 1, 2002 are as follows for the years ended December 31:
2003 2002
Revenue $19,407.0 $19,848.3
Net income $479.3 $387.8
Diluted earnings per share $1.67 $1.21
The unaudited pro forma results of continuing operations are presented for informational purposes only and may not necessarily reflect
the future results of operations of the Company or what the results of operations would have been had the Company owned and operated
these businesses as of the beginning of each period presented.
In April 2001, the Company completed the sale of its Flemington dealership group for net proceeds of $59.0 million. The resulting gain of
$19.3 million has been included in Other Gains in the accompanying 2001 Consolidated Income Statement.
19. RELATED PARTY TRANSACTIONS
The following is a summary of significant agreements and transactions among certain related parties and the Company. It is the
Company’s policy that transactions with affiliated parties must be entered into in good faith on fair and reasonable terms that are no less
favorable to the Company than those that would be available in a comparable transaction in arm’s-length dealings with an unrelated third
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.
In connection with the Company’s spin-off of ANC Rental in June 2000, the Company entered into certain agreements and
arrangements with ANC Rental. J.P. Bryan, a Company Director, and H. Wayne Huizenga, a Company Director, were directors of ANC
Rental from July 2000 until October 2003. ANC Rental agreed to buy automotive parts from the Company following the spin-off, and paid the
Company approximately $3.0 million, $5.2 million and $8.1 million, respectively, for parts purchases made during 2003, 2002 and 2001.
See further information in Note 16, Discontinued Operations.
In January 2001, the Company sold a jet to Republic Services, Inc. for approximately $4.7 million, which was based on its then current
net asset value plus the agreed upon value of certain repairs performed by the Company immediately prior to the sale. Harris W. Hudson, a
former Company Director, and H. Wayne Huizenga, a Company Director, both serve as directors of Republic Services.
20. SUPPLEMENTAL CASH FLOW INFORMATION
The Company considers all highly liquid investments with purchased maturities of three months or less to be cash equivalents unless
the investments are legally or contractually restricted for more than three months. The effect of non-cash transactions is excluded from the
accompanying Consolidated Statements of Cash Flows.
The Company made interest payments of approximately $134.9 million, $128.6 million and $159.0 million for the years ended
December 31, 2003, 2002 and 2001, respectively, including interest on vehicle inventory financing. The Company made income tax
payments of approximately $471.5 million, $193.3 million and $196.4 million for the years ended December 31, 2003, 2002 and 2001,
respectively. The tax payments for 2003 include a $366 million prepayment of the IRS settlement as further discussed in Note 14, Income
Taxes, of Notes to Consolidated Financial Statements.
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