PART II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(All tables in millions, except per share data)


6. SHAREHOLDERS' EQUITY

    During the year ended December 31, 2000, the Company repurchased 27.6 million shares of its common stock, par value $.01 per share, under its Board authorized share repurchase program for an aggregate purchase price of $188.9 million. The Company repurchased 91.0 million shares of common stock during 1999 for an aggregate purchase price of $1.16 billion. The Company repurchased 9.1 million shares of common stock during 1998 for an aggregate purchase price of $136.0 million. Through December 31, 2000, an aggregate of 127.7 million shares of common stock have been repurchased under the Company's share repurchase programs, authorized by the Company's Board of Directors in 1998 and 1999, for an aggregate purchase price of $1.48 billion. As of March 26, 2001, the Company repurchased an additional 10.9 million shares of common stock for an aggregate purchase price of $87.8 million, leaving approximately $179.2 million available for share repurchases under the latest authorized program. Repurchases are made pursuant to Rule 10b-18 of the Securities Exchange Act of 1934, as amended.

    As discussed in Note 11, Discontinued Operations, the Company completed the tax-free spin-off of ANC Rental on June 30, 2000. As a result of the spin-off, the Company's retained earnings were reduced by the net assets of ANC Rental totaling $894.4 million. The equity adjustment resulting from the spin-off is subject to further adjustment resulting from changes in estimated shared assets and liabilities of AutoNation and ANC Rental and certain other matters. However, such adjustments, if any, are not expected to be significant.

    During the year ended December 31, 1998, the Company's former solid waste subsidiary, Republic Services, completed an initial public offering of approximately 36.1% of its outstanding common stock, resulting in net proceeds of approximately $1.43 billion. In 1999, the Company sold substantially all of its interest in Republic Services in a public offering resulting in proceeds of approximately $1.78 billion. During 2000, the Company sold substantially all of the remaining holdings of common stock of Republic Services resulting in proceeds of approximately $48.2 million. A related pre-tax gain of $24.0 million has been reflected in Other Income, Net, in the accompanying 2000 Consolidated Income Statement.

    The Company has five million authorized shares of preferred stock, par value $.01 per share, none of which are issued or outstanding. The Board of Directors has the authority to issue the preferred stock in one or more series and to establish the rights, preferences and dividends.