AutoNation 2005 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2005 AutoNation annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 116

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116

Table of Contents
AUTONATION, INC.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS — (Continued)
5. INTANGIBLE ASSETS, NET
Intangible assets, net, at December 31 consist of the following:
2005 2004
Goodwill $2,994.9 $2,986.7
Franchise rights — indefinite-lived 224.4 220.5
Other intangibles 6.2 11.6
3,225.5 3,218.8
Less: accumulated amortization (268.4) (272.1)
$2,957.1 $2,946.7
Goodwill and franchise rights-indefinite-lived are not amortized. Goodwill was amortized until January 1, 2002 when the Company
adopted provisions of SFAS 142, “Goodwill and Other Intangible Assets.” Other intangibles with definite lives are amortized primarily over
three to sixteen years using a straight-line method.
6. 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
insurance risks are estimated by management and by actuarial evaluation based on historical claims experience, adjusted for current trends
and changes in claims-handling procedures.
At December 31, 2005 and 2004 current insurance accruals were included in Other Current Liabilities in the Consolidated Balance
Sheets and long-term insurance accruals were included in Other Liabilities in the Consolidated Balance Sheets as follows:
2005 2004
Insurance accruals — current portion $43.2 $29.3
Insurance accruals — long-term portion 44.4 38.9
Total insurance accruals $87.6 $68.2
7. NOTES PAYABLE AND LONG-TERM DEBT
Notes payable and long-term debt at December 31 are as follows:
2005 2004
9% senior unsecured notes, net of unamortized discount of $1.8 million and $3.4 million, respectively $321.7 $443.2
Revolving credit facilities — —
Mortgage facilities 153.7 318.1
Other debt 49.6 51.3
525.0 812.6
Less: current maturities (40.6) (14.9)
$484.4 $797.7
55