AutoNation 2007 Annual Report Download - page 72
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Table of Contents
The changes in the components of other comprehensive income (loss), net of income taxes, are as follows for the years ended December 31:
Unrealized gains (losses) on cash flow
hedges, restricted investments and
marketable securities $ 0.3 $(0.1) $ 0.2 $ (3.6) $ 1.4 $ (2.2) $ 5.0 $(1.7) $ 3.3
The Accumulated Other Comprehensive Income (Loss) in the accompanying Consolidated Statements of Shareholders’ Equity and
Comprehensive Income is $(0.2) million at December 31, 2007, $(0.4) million at December 31, 2006, and $1.8 million at December 31, 2005.
We acquired various automotive retail franchises and related assets during the years ended December 31, 2007, 2006, and 2005. We paid in
cash approximately $6.7 million in 2007, $166.5 million in 2006, and $6.0 million in 2005 for automotive retail acquisitions. We also paid
$0.2 million in 2006 and $9.9 million in 2005 in deferred purchase price for certain prior year automotive retail acquisitions. During 2007, we
acquired ten automobile retail franchises and other related assets, five in 2006, and two in 2005. We have accrued approximately $0.5 million at
December 31, 2007, and $4.2 million at December 31, 2006, of deferred purchase price due to former owners of acquired businesses, which is
included in Other Current Liabilities in the accompanying Consolidated Balance Sheets.
Purchase price allocations for 2007 are tentative and subject to final adjustment. Purchase price allocations for business combinations
accounted for under the purchase method of accounting for the years ended December 31 were as follows:
Accounts receivable $ — $ 5.6 $ —
Inventory 20.0 45.3 6.5
Property and equipment 1.6 7.1 0.1
Goodwill 2.5 81.3 2.5
Franchise rights — indefinite lived 2.0 88.0 3.9
Other intangibles subject to amortization — 1.7 —
Other assets — 11.5 0.1
Vehicle floorplan payable-trade — (13.4) (6.5)
Vehicle floorplan payable-non-trade (18.7) (34.8) —
Other liabilities (0.7) (25.8) (0.6)
6.7 166.5 6.0
Cash paid in deferred purchase price — 0.2 9.9
Cash used in business acquisitions, net of cash acquired $ 6.7 $ 166.7 $15.9
Responsibility for the vehicle floorplan payable is assumed by us in acquisition transactions. Typically, we refinance the vehicle floorplan
payable, in which case the initial refinancing is accounted for as a vehicle
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