Quarterly report pursuant to Section 13 or 15(d)

Business Acquisitions and Dispositions

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Business Acquisitions and Dispositions
 9 Months Ended
Sep. 30, 2024
Business Combinations [Abstract]  
Business Acquisitions and Dispositions Business Acquisitions and Dispositions
We did not acquire any businesses during the nine months ended September 30, 2024. During the nine months ended September 30, 2023, we acquired one business (consisting of five locations) in our Powersports Segment (as defined below) for an aggregate gross purchase price (including inventory acquired and subsequently funded by floor plan notes payable) of approximately $75.1 million. The allocation of the approximately $75.1 million aggregate gross purchase price included inventory of approximately $11.1 million, property and equipment of approximately $0.7 million, franchise assets of approximately $22.6 million, goodwill of approximately $11.9 million, real estate of approximately $29.0 million, other assets of approximately $0.1 million, and other liabilities of approximately $0.3 million.
During the nine months ended September 30, 2024, we terminated two luxury franchised dealerships and disposed of two mid-line import franchised dealerships, in addition to closing the remaining seven Northwest Motorsport stores within the EchoPark Segment (as defined below). The disposal of two mid-line import franchised dealerships generated net cash of approximately $8.2 million. During the nine months ended September 30, 2023, we disposed of one luxury franchised dealership, one domestic franchised dealership, and one mid-line import franchised dealership that generated net cash of approximately $52.2 million.
Revenues and other activities associated with disposed stores, terminated franchises or closed stores that remain in continuing operations were as follows:
Three Months Ended September 30, Nine Months Ended September 30,
2024 2023 2024 2023
(In millions)
Income (loss) from operations $ (2.2) $ (6.4) $ (11.5) $ (35.0)
Gain (loss) on disposal, termination and closure charges
 0.1  (0.3) (1.3) 20.4 
Lease exit accrual adjustments and charges 1.2  (1.4) 7.4  (5.7)
Property impairment charges —  —  —  (46.0)
Pre-tax income (loss) (0.9) (8.1) (5.4) (66.3)
Total Revenues $ 0.4  $ 72.8  $ 23.6  $ 449.4 
Segment Information
9. Segment Information
As of September 30, 2024, Sonic had three operating segments: (1) retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle maintenance, warranty and repair services, and arrange finance and insurance products (the “Franchised Dealerships Segment”); (2) pre-owned vehicle specialty retail locations that provide guests an opportunity to search our nationwide inventory, purchase a pre-owned vehicle, select finance and insurance products and sell their current vehicle to us (the “EchoPark Segment”); and (3) retail locations that sell new and used powersports vehicles, perform vehicle maintenance, warranty and repair services, and arrange finance and insurance products (the “Powersports Segment”). Sonic has determined that its operating segments also represent its reportable segments. Due to rounding, segment level financial data may not sum to consolidated results.
The reportable segments identified above are the business activities of Sonic for which discrete financial information is available and for which operating results are regularly reviewed by Sonic’s chief operating decision maker to assess operating performance and allocate resources. Sonic’s chief operating decision maker is a group of three individuals consisting of: (1) the Company’s Chief Executive Officer; (2) the Company’s President; and (3) the Company’s Chief Financial Officer.