A summary of the activity of these operating lease exit accruals
consists of the following:
|
|
|
|
|
| |
|
(In thousands) |
|
|
Balance, December 31, 2013
|
|
$ |
27,234 |
|
|
Lease exit expense (1)
|
|
|
624 |
|
|
Payments (2)
|
|
|
(3,874 |
) |
|
Lease buyout (3)
|
|
|
(1,556 |
) |
|
|
|
|
|
|
Balance, June 30, 2014
|
|
$ |
22,428 |
|
|
|
|
|
|
| (1) |
Expense of approximately $0.1 million
is recorded in interest expense, other, net, approximately $0.1
million is recorded in selling, general and administrative
expenses, and approximately $0.4 million is recorded in income
(loss) from operations and the sale of dealerships in the
accompanying Unaudited Condensed Consolidated Statements of
Income. |
| (2) |
Amount is recorded as an offset to
rent expense in selling, general and administrative expenses, with
approximately $0.5 million in continuing operations and $3.4
million in income (loss) from operations and the sale of
dealerships in the accompanying Unaudited Condensed Consolidated
Statements of Income. |
| (3) |
Amount represents write-off of
accrual related to an early lease buyout agreement which was
completed and paid, relieving Sonic of any future lease
obligation. |
|