text: Through the date of the Company's initial public oÅering of common stock in July 1998, the Company 
  Ñled consolidated federal income tax returns with AutoNation Inc. (""AutoNation''), its former parent 
  company. In accordance with the Company's tax sharing agreement with AutoNation, the Company may be 
  liable for certain assessments imposed by the Internal Revenue Service for the periods through June 1998. 
  The Internal Revenue Service is auditing the Company's consolidated tax returns for Ñscal years 1998 through 
  2003. Management believes that the tax liabilities recorded are adequate. However, a signiÑcant assessment in 
  excess of liabilities recorded against the Company could have a material adverse eÅect on the Company's 
  Ñnancial position, results of operations or cash Öows. 
  
  77 