(In thousands)

Balance, December 31, 2013

$

27,234

Lease exit expense (1)

(272

)

Payments (2)

(5,445

)

Lease buyout (3)

(1,556

)

Balance, September 30, 2014

$

19,961

(1)   Expense of approximately $0.2 million is recorded in interest expense, other, net, expense of approximately $0.1 million

is recorded in selling, general and administrative expenses, and income of approximately $0.6 million is recorded

in income (loss) from discontinued operations 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

$0.6 million in continuing operations and $4.8 million in income (loss) from discontinued operations 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.