Annual report pursuant to Section 13 and 15(d)

Related Parties

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Related Parties
 12 Months Ended
Dec. 31, 2015
Related Party Transactions [Abstract]  
Related Parties

8. Related Parties

Certain of Sonic’s dealerships purchase the zMAX micro-lubricant from Oil-Chem Research Company (“Oil-Chem”), a subsidiary of Speedway Motorsports, Inc. (“SMI”), for resale to Fixed Operations customers of Sonic’s dealerships in the ordinary course of business. Sonic’s Executive Chairman, Mr. O. Bruton Smith, is also the Executive Chairman of SMI, and Mr. Smith’s son, Mr. Marcus G. Smith, a greater than 10% beneficial owner of Sonic, is the Chief Executive Officer and President of SMI. Total purchases from Oil-Chem by Sonic dealerships were approximately $2.1 million, $2.1 million and $2.0 million in the years ended December 31, 2015, 2014 and 2013, respectively.

Sonic participates in various aircraft-related transactions with Sonic Financial Corporation (“SFC”), an entity jointly controlled by Messrs. O. Bruton Smith, B. Scott Smith, David Bruton Smith and Marcus G. Smith. Such transactions include, but are not limited to, the use of aircraft owned by SFC for business-related travel by Sonic executives, a management agreement with SFC for storage and maintenance of aircraft leased by Sonic from unrelated third parties, and the use of Sonic’s aircraft for business-related travel by certain affiliates of SFC. Sonic incurred net expenses of approximately $0.6 million, $0.5 million and $0.9 million in the years ended December 31, 2015, 2014 and 2013, respectively, in aircraft-related transactions with these related parties.

Sonic incurred net expenses of approximately $0.8 million, $0.6 million and $0.6 million in the years ended December 31, 2015, 2014 and 2013, respectively, related to other transactions with various SMI subsidiaries, consisting primarily of merchandise and apparel purchases.