AutoNation, Inc.(Updated Quarterly)
Ticker Symbol: AN
CUSIP Number: 05329W102
First Automotive Dealership acquired: December 23, 1996 – Ed Mullinax, Inc.
Date name changed from Republic Industries to AutoNation: April 6, 1999
FAQ's For the Tax Treatment of the Spin-Off of Shares of ANC Rental Common Stock on June 6, 2000
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Q: Where are AutoNation's common shares traded? |
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A: AutoNation's shares have traded on the New York Stock Exchange since June 20, 1997 -- first under the symbol "RII" as Republic Industries, Inc., then beginning on April 6, 1999 under the symbol "AN" as AutoNation.
Prior to trading on the NYSE, the stock traded on the NASDAQ under the symbol "RWIN" when the Company operated as Republic Waste Industries, Inc.
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Q: Where can I buy AutoNation's common stock? |
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A: AutoNation's common stock can be bought or sold through a stock broker, bank or any financial institution that provides brokerage services. |
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Q: Does AutoNation pay its shareholders a dividend? |
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A: No, AutoNation does not pay a cash dividend. Like most rapidly growing companies, the Company is using its available funding, both internal and external, to grow the business. The Company believes that this will increase shareholder value more rapidly than using funds to pay a dividend. In 1997, Fortune magazine named AutoNation one of America's fastest growing companies and in 2002 it ranked the Company #101 on its ranking of America's 500 largest corporations. |
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Q: Who is the transfer agent? |
A: Computershare Investor Service
P.O. Box 1689
Chicago, IL 60690-1689
Toll free telephone number: 1-800-689-5259
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Q: How can I change my address on my AutoNation common stock account? |
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A: All request for address changes must be made in writing to the above-listed transfer agent. Please include your exact name as it is on the registration of your shares, social security number, account number and previous address. |
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Q: When has AutoNation's common stock split? |
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A: The record date of the Company's 2-for-1 stock split was May 28, 1996. It was payable on June 8, 1996. |
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Q: How can I obtain a copy of AutoNation's annual report to shareholders? |
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A: Electronic PDF copies of the Company's annual reports can be accessed through the Annual Reports page of this site's Investor Relations section. To obtain hard copies, please submit your request through Information Request page of this site's Investor Relations section or call 954-769-7339. |
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Q: Are there special rates/discounts at AutoNation dealerships for shareholders? |
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A: AutoNation's dealerships currently do not offer special rates or discounts for shareholders. |
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Q: Who are AutoNation's independent auditors? |
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A: KPMG LLP is AutoNation's independent auditor. |
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Q: What is AutoNation's fiscal year? |
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A: AutoNation's fiscal year is based on the calendar year, with the first day of the fiscal year being January 1st, and the last day of the fiscal year being December 31st. AutoNation's quarters end on March 31st, June 30th, September 30th and December 31st. |
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Q: Does AutoNation have a direct share purchase plan? |
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A: Currently, AutoNation does not offer a direct share purchase plan. |
FAQ's For the Tax Treatment of the Spin-Off of Shares of ANC Rental Common Stock on June 6, 2000
The responses to the questions below do not constitute tax advice, nor does it purport to be complete as to the description of all tax consequences that would result in particular circumstances. You should consult your tax advisor as to your specific situation. A complete discussion of risks relating to the tax-free spin-off are discussed in a Form 10 (as amended) filed by ANC Rental with the SEC on June 6, 2000.
Q: Could you summarize the key information I need to know about the tax-free distribution of ANC Rental common stock?
A:
Notice Date: 5/31/2000
Record Date: 6/16/2000
Payment Date: 6/30/2000
Ex-Dividend Date: 7/3/2000
Distribution Ratio: 1 share of ANC Rental common stock for every 8 shares of AutoNation common stock owned.
Tax Basis Allocation Ratio: 9.73% of your AutoNation stock tax basis should be allocated to your ANC Rental shares (this allocation percentage is based upon the closing prices of AutoNation and ANC Rental on June 30, 2000).
Q: Was the distribution of ANC Rental common stock tax-free?
A: The IRS has issued a ruling to the effect that AutoNation's distribution of ANC Rental common stock is tax-free to AutoNation stockholders for U.S. federal income tax purposes, subject to the conditions set forth in the ruling. You should consult your tax advisor regarding the federal, foreign, state and local tax consequences of the distribution applicable to your own particular circumstances.
Q: How can I calculate the tax basis for my ANC Rental common stock?
A: Based upon the closing of AutoNation common stock and ANC Rental common stock on the NYSE and the Nasdaq Stock Market, respectfully, on June 30, 2000, 90.27% of your pre-distributed tax basis in your AutoNation common stock should be allocated to your AutoNation common stock, and the remaining 9.73% should be allocated to your ANC Rental common stock (including any fractional share interest. For example:
Assume you own 100 shares of AutoNation common stock with $6 per share tax basis for a total tax basis of $600.
You received 12.5 shares of ANC Rental common stock as a result of the distribution (100 shares of AutoNation common stock divided by 8).
Your total tax basis in your 100 shares of AutoNation common stock would be reduced to $541.62 (90.27% of $600) or $5.42 per share ($541.62 divided by 100 shares).
Your total tax basis in your 12.5 shares of ANC Rental common stock would be $58.38 (9.73% of $600, or your $600 pre-distribution basis minus the $541.62 of that basis allocated to your 100 shares of AutoNation common stock), or $4.67 per share ($58.38 dicided by 12.5 shares of ANC Rental common stock).
Your tax basis in the 0.5 fractional share is $2.34 ($4.67 per share basis in ANC Rental common stock multiplied by 0).
If you acquired AutoNation common stock at different times, you will need to perform this calculation separately for each group of shares that you acquired.
Q: How were fractional shares handled?
A: No fractional shares were issued in the distribution to any AutoNation stockholder. Instead, all fractional shares were aggregated and sold for cash. If you received cash in lieu of a fractional share, you will be treated as having sold the fractional share. You report gain of loss on that sale equal to the difference between the amount of the cash you received and the tax basis allocated to the fractional share of ANC Rental as determined using the above allocation method. This cash is not a dividend.
You should consult your tax advisor regarding the application of this calculation to your particular interest.
Q: I was a record shareholder on June 16, 2000, but sold AutoNation stock before the distribution date of July 3, 2000. How do I determine my cost basis in my AutoNation common stock and ANC Rental common stock?
A: If you sold AutoNation common shares on the NYSE before July 3, 2000, you also sold your right to receive ANC Rental common stock with respect to the AutoNation shares you sold. You should consult your tax advisor regarding the allocation of your cost basis between your AutoNation common stock and your ANC Rental common stock and the manner in which you report your sale.
Q: Where can I get more information regarding the distribution and its federal income tax consequences?
A: On or about June 19, 2000, we mailed a detailed information statement to AutoNation stockholders of record as June 16, 2000. We also recently mailed a basis allocation letter to such stockholders.
Basis Allocation Letter
Detailed Information Statement
Form 10, Ammendment No.7
Filed June 6, 2000
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