Sonic Automotive, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

CONSOLIDATED STATEMENTS OF CASH FLOWS

CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) In Thousands, unless otherwise specified	12 Months Ended
	Dec. 31, 2014	Dec. 31, 2013	Dec. 31, 2012
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss)	$ 97,217us-gaap_NetIncomeLoss	$ 81,618us-gaap_NetIncomeLoss	$ 89,101us-gaap_NetIncomeLoss
Adjustments to reconcile net income (loss) to net cash provided by operating activities:
Depreciation and amortization of property and equipment	58,254	54,047	45,918
Provision for bad debt expense	516us-gaap_ProvisionForDoubtfulAccounts	249us-gaap_ProvisionForDoubtfulAccounts	453us-gaap_ProvisionForDoubtfulAccounts
Other amortization	1,165	1,561	1,561
Debt issuance cost amortization	2,135us-gaap_AmortizationOfFinancingCosts	2,787us-gaap_AmortizationOfFinancingCosts	3,053us-gaap_AmortizationOfFinancingCosts
Debt discount amortization, net of premium amortization	67	(111)	2,780
Stock - based compensation expense	7,675us-gaap_ShareBasedCompensation	7,208us-gaap_ShareBasedCompensation	5,160us-gaap_ShareBasedCompensation
Deferred income taxes	28,470us-gaap_DeferredIncomeTaxExpenseBenefit	21,924us-gaap_DeferredIncomeTaxExpenseBenefit	22,496us-gaap_DeferredIncomeTaxExpenseBenefit
Equity interest in earnings of investee	(283)	(406)	(481)
Asset impairment charges	6,594us-gaap_AssetImpairmentCharges	9,872us-gaap_AssetImpairmentCharges	950us-gaap_AssetImpairmentCharges
Loss (gain) on disposal of dealerships and property and equipment	(13,323)	267	(10,623)
Loss (gain) on exit of leased dealerships	302sah_GainLossOnExitOfLeasedDealerships	2,915sah_GainLossOnExitOfLeasedDealerships	4,286sah_GainLossOnExitOfLeasedDealerships
(Gain) loss on retirement of debt		28,238	19,713
Changes in assets and liabilities that relate to operations:
Receivables	(2,436)	(9,092)	(42,093)
Inventories	(56,203)us-gaap_IncreaseDecreaseInInventories	(78,646)us-gaap_IncreaseDecreaseInInventories	(347,633)us-gaap_IncreaseDecreaseInInventories
Other assets	(278)	(9,834)	(69,157)
Notes payable - floor plan - trade	30,588	25,835	186,168
Trade accounts payable and other liabilities	190	(11,984)	20,970
Total adjustments	63,433	44,830	(156,479)
Net cash provided by (used in) operating activities	160,650	126,448	(67,378)
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchase of businesses, net of cash acquired	(50,867)	(88,184)
Purchases of land, property and equipment	(146,432)	(157,617)	(95,376)
Proceeds from sales of property and equipment	14,122	769	750
Proceeds from sales of dealerships	74,823		72,220
Distributions from equity investee	400	500	700
Net cash provided by (used in) investing activities	(107,954)	(244,532)	(21,706)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (repayments) borrowings on notes payable - floor plan - non-trade	(19,543)	46,638	124,709
Borrowings on revolving credit facilities	179,791	231,698	143,577
Repayments on revolving credit facilities	(179,791)	(237,874)	(137,401)
Proceeds from issuance of long-term debt	44,454	353,693	223,920
Debt issuance costs	(2,959)us-gaap_PaymentsOfDebtIssuanceCosts	(5,394)us-gaap_PaymentsOfDebtIssuanceCosts	(4,472)us-gaap_PaymentsOfDebtIssuanceCosts
Principal payments on long-term debt	(19,482)us-gaap_RepaymentsOfLongTermDebt	(19,426)us-gaap_RepaymentsOfLongTermDebt	(10,768)us-gaap_RepaymentsOfLongTermDebt
Repurchase of debt securities		(233,573)us-gaap_RepaymentsOfSeniorDebt	(164,896)us-gaap_RepaymentsOfSeniorDebt
Purchases of treasury stock	(53,046)	(17,067)	(82,924)
Income tax benefit (expense) associated with stock compensation plans	1,033	856	3,207
Issuance of shares under stock compensation plans	3,274	2,171	2,333
Dividends paid	(5,261)us-gaap_PaymentsOfDividendsCommonStock	(3,993)us-gaap_PaymentsOfDividendsCommonStock	(6,743)us-gaap_PaymentsOfDividendsCommonStock
Net cash provided by (used in) financing activities	(51,530)	117,729	90,542
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	1,166	(355)	1,458
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR	3,016	3,371	1,913
CASH AND CASH EQUIVALENTS, END OF PERIOD	4,182	3,016	3,371
SUPPLEMENTAL SCHEDULE OF NON-CASH FINANCING ACTIVITIES:
Change in fair value of cash flow hedging instruments (net of tax expense of $1,769, $6,514 and $1,035 in the years ended December 31, 2014, 2013 and 2012, respectively)	2,886	10,629	1,687
Issuance of common stock as consideration for extinguishment of debt securities			(67,869)
Cash paid (received) during the period for:
Interest, including amount capitalized	71,776us-gaap_InterestPaid	81,626us-gaap_InterestPaid	71,140us-gaap_InterestPaid
Income taxes	$ 50,525us-gaap_IncomeTaxesPaidNet	$ 30,158us-gaap_IncomeTaxesPaidNet	$ 28,633us-gaap_IncomeTaxesPaidNet