Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

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Discontinued Operations
 6 Months Ended
Jun. 30, 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 six-month period ended June 30, 2012, Sonic disposed of five dealerships, which generated cash from disposition of approximately $23.6 million on the disposal of approximately $8.0 million of net assets. At June 30, 2012, there were no dealerships 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,  
(In thousands)   2012     2011     2012     2011  
         

Income (loss) from operations

   $ (189 )    $ 260     $ (1,000 )    $ 852  

Gain (loss) on disposal

     (367 )      (180 )      5,292       (222 ) 

Lease exit accrual adjustments and charges

     1,901       (1,077 )      (1,243 )      (2,722 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Pre-tax income (loss)

   $ 1,345     $ (997 )    $ 3,049     $ (2,092 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  
                                 
   

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

   $ —       $ 22,227     $ 10,267     $ 43,287  
   

 

 

    

 

 

    

 

 

    

 

 

  

Lease exit charges recorded for the second quarter and six-month periods ended June 30, 2012 and 2011 relate to interest charges, the revision of estimates on previously established lease exit accruals and the reversal of a lease exit accrual related to a property which was returned to operating use. 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.