Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 6 Months Ended
Jun. 30, 2011
Discontinued Operations [Abstract]  
Discontinued Operations

2. Discontinued Operations

Dispositions — The operating results of disposed franchises and franchises held for sale are included in the loss from discontinued operations in Sonic’s Unaudited Condensed Consolidated Statements of Income. At June 30, 2011, there were no dealership franchises held for sale.

 

Revenues and other activities associated with franchises classified as discontinued operations were as follows:

 

                                 
    Second Quarter Ended
June  30, 		    Six Months Ended
June 30, 		 
    2011     2010     2011     2010  
    (In thousands)     (In thousands)  

Loss from operations

   $ (1,107)       $ (1,541)       $ (1,481)       $ (4,147)    

Gain (loss) on disposal of businesses

     (175)         1,082          (150)         1,353     

Lease exit charges

     53          (1,077)         (872)         (2,722)    
   

 

 

    

 

 

    

 

 

    

 

 

  

Pre-tax loss

   $ (1,229)       $ (1,536)       $ (2,503)       $ (5,516)    
   

 

 

    

 

 

    

 

 

    

 

 

  
         

Total revenues

   $ —         $ 20,381        $ —         $ 45,653     

Lease exit charges recorded for the second quarter and six-month periods ended June 30, 2011 and 2010 relate to interest charges and the revision of estimates on previously established lease exit accruals. The lease exit accruals represent the present value of the lease payments, net of estimated sublease proceeds, for the remaining life of the operating leases and other accruals necessary to satisfy the lease commitment to the landlord.