Annual report pursuant to Section 13 and 15(d)

Commitments and Contingencies (Tables)

v2.4.0.8
Commitments and Contingencies (Tables)
 12 Months Ended
Dec. 31, 2013
Commitments And Contingencies Disclosure [Abstract]  
Summary of Lease Exit Accruals

A summary of the activity of these operating lease accruals consists of the following:

 

     (In thousands)  

Balance, December 31, 2012

    $  32,983   

Lease exit expense(1)

      2,915   

Payments(2)

      (8,664 ) 
  

 

 

  

Balance, December 31, 2013

    $ 27,234   
  

 

 

  

 

(1) Expense of approximately $0.3 million is recorded in interest expense, other, net, expense of approximately $0.1 million is recorded in selling, general and administrative expenses, and expense of approximately $2.6 million is recorded in income (loss) from operations and the sale of dealerships in the accompanying Consolidated Statements of Income.

 

(2) Amount is recorded as an offet to rent expense in selling, general and administrative expenses, with approximately $1.2 million in continuing operations and $7.5 million in income (loss) from operations and the sale of dealerships in the accompanying Consolidated Statements of Income.
Minimum Future Lease Payments for both Continuing and Discontinued Operations

Minimum future lease payments for facility leases and future receipts from subleases as required under non-cancelable operating leases for both continuing and discontinued operations based on current interest rates in effect are as follows:

 

Year Ending December 31,

  

 

    Future
Minimum
Lease Payments,
Net 		     Receipts
from  Future
Subleases 		 
         (In thousands)  

2014

      $ 102,792       $ (18,298 ) 

2015

      $ 90,972       $ (17,283 ) 

2016

      $ 85,601       $ (15,131 ) 

2017

      $ 73,700       $ (9,719 ) 

2018

      $ 60,742       $ (7,840 ) 

Thereafter

      $  183,232       $ (25,798 ) 
Financial Covenants Related to Amended Subordination and Guaranty Agreement

The required financial covenants related to certain lease agreements are as follows:

 

     Covenant  
     Minimum
Consolidated
Liquidity
Ratio		      Minimum
Consolidated
Fixed Charge
Coverage
Ratio		      Maximum
Consolidated
Total Lease
Adjusted Leverage
Ratio		      Minimum
EBTDAR to
Rent Ratio		  

Required ratio

      1.05         1.20         5.50         1.50   

December 31, 2013 actual

      1.16         1.83         3.96         3.59