Quarterly report pursuant to Section 13 or 15(d)

Discontinued Operations

v2.4.0.6
Discontinued Operations
 9 Months Ended
Sep. 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 third quarter ended September 30, 2012, Sonic disposed of three dealerships, which generated cash from disposition of approximately $28.3 million on the disposal of approximately $13.6 million of net assets. During the nine-month period ended September 30, 2012, Sonic disposed of eight dealerships, which generated cash from disposition of approximately $51.9 million on the disposal of approximately $21.6 million of net assets. At September 30, 2012, there were no dealerships held for sale.

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

 

                                 
    Third Quarter Ended
September 30,		     Nine Months Ended
September 30,		  
(In thousands)   2012     2011     2012     2011  

Income (loss) from operations

   $ (1,607 )    $ (1,646 )    $ (6,832 )    $ (4,906 ) 

Gain (loss) on disposal

     1,084       (136 )      6,597       (358 ) 

Lease exit accrual adjustments and charges

     (2,316 )      653       (3,594 )      (220 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Pre-tax income (loss)

   $ (2,839 )    $ (1,129 )    $ (3,829 )    $ (5,484 ) 
   

 

 

    

 

 

    

 

 

    

 

 

  

Total revenues

   $ 21,198     $ 66,689     $ 109,359     $ 183,960  
   

 

 

    

 

 

    

 

 

    

 

 

  

Lease exit charges recorded during the third quarter and nine-month periods ended September 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.