AutoNation 2007 Annual Report Download - page 11

Table of Contents
market conditions or other factors affecting the economics of our insurance purchasing change. Although we have, subject to certain limitations
and exclusions, substantial insurance, we cannot assure you that we will not be exposed to uninsured or underinsured losses that could have a
material adverse effect on our business, financial condition, results of operations, or cash flows.
Provisions for retained losses and deductibles are made by charges to expense based upon periodic evaluations of the estimated ultimate
liabilities on reported and unreported claims. The insurance companies that underwrite our insurance require that we secure certain of our
obligations for deductible reimbursements with collateral. Our collateral requirements are set by the insurance companies and, to date, have been
satisfied by posting surety bonds, letters of credit, and/or cash deposits. Our collateral requirements may change from time to time based on,
among other things, our claims experience. We include additional details about our collateral requirements in the “Management’s Discussion and
Analysis of Financial Condition and Results of Operations” section of this document, as well as in the Notes to our Consolidated Financial
Statements.
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As of December 31, 2007, we employed approximately 25,000 full time employees, approximately 230 of whom were covered by collective
bargaining agreements. We believe that we have good relations with our employees.
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Our operations generally experience higher volumes of vehicle sales and service in the second and third quarters of each year due in part to
consumer buying trends and the introduction of new vehicle models. Also, demand for vehicles and light trucks is generally lower during the
winter months than in other seasons, particularly in regions of the United States where stores may be subject to adverse winter conditions.
Accordingly, we expect our revenue and operating results generally to be lower in the first and fourth quarters as compared to the second and
third quarters. However, revenue may be impacted significantly from quarter to quarter by actual or threatened severe weather events and other
factors unrelated to weather conditions, such as changing economic conditions and vehicle manufacturer incentive programs.
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We own a number of registered service marks and trademarks, including, among other marks, AutoNation and AutoNation®.
Pursuant to agreements with vehicle manufacturers, we have the right to use and display manufacturers’ trademarks, logos, and designs at our
stores and in our advertising and promotional materials, subject to certain restrictions. We also have licenses pursuant to various agreements
with third parties authorizing the use and display of the marks and/or logos of such third parties, subject to certain restrictions. The current
registrations of our service marks and trademarks in the United States and foreign countries are effective for varying periods of time, which we
may renew periodically, provided that we comply with all applicable laws.
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We provide below information regarding each of our executive officers.
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Mike Jackson 59 Chairman of the Board and Chief Executive Officer
Michael E. Maroone 54 Director, President and Chief Operating Officer
Michael J. Short 46 Executive Vice President and Chief Financial Officer
Jonathan P. Ferrando 42 Executive Vice President, General Counsel and Secretary
Kevin P. Westfall 52 Senior Vice President, Sales
Mike Jackson has served as our Chairman of the Board since January 2003, and as our Chief Executive Officer and Director since
September 1999. From October 1998 until September 1999, Mr. Jackson served as
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