Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 3 Months Ended
Mar. 31, 2012
Discontinued Operations [Abstract]  
Discontinued Operations

2. Discontinued Operations

Dispositions — The operating results of disposed dealerships are included in the income (loss) from discontinued operations in Sonic’s Unaudited Condensed Consolidated Statements of Income. During the first quarter ended March 31, 2012, Sonic disposed of three dealerships, which generated cash from disposition of approximately $20.0 million on the disposal of approximately $7.2 million of net assets. At March 31, 2012, there were no dealerships held for sale.

 

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

 

                 
    First Quarter Ended
March 31,		  
     2012     2011  
    (In thousands)  

Income (loss) from operations

   $ (811)      $ (128)    

Gain (loss) on disposal

     5,660         (42)    

Lease exit accrual adjustments and charges

     (3,143)        (924)    
   

 

 

    

 

 

  

Pre-tax income (loss)

   $ 1,706       $ (1,094)   
   

 

 

    

 

 

  
     

Total revenues

   $ 10,294       $ 21,059    
   

 

 

    

 

 

  

Lease exit charges recorded for the first quarters ended March 31, 2012 and 2011 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 or actual sublease proceeds, for the remaining life of the operating leases and other accruals necessary to satisfy the lease commitment to the landlord.