Quarterly report pursuant to Section 13 or 15(d)

Business Acquisitions and Dispositions

v2.4.1.9
Business Acquisitions and Dispositions
 3 Months Ended
Mar. 31, 2015
Business Combinations [Abstract]  
Business Acquisitions and Dispositions

2. Business Acquisitions and Dispositions

Acquisitions – Sonic acquired one luxury franchise during the three months ended March 31, 2014 for an aggregate purchase price of approximately $2.6 million. Sonic did not acquire any franchises during the three months ended March 31, 2015.

Dispositions – As discussed in Note 1, “Description of Business and Summary of Significant Accounting Policies,” of the notes to the consolidated financial statements in Sonic’s Annual Report on Form 10-K for the year ended December 31, 2014, the FASB issued ASU 2014-08 which amended the definition of and reporting requirements for discontinued operations. Sonic elected to adopt and apply this guidance beginning with its Quarterly Report on Form 10-Q for the period ended June 30, 2014. The results of operations for those dealerships that were classified as discontinued operations as of March 31, 2014 are included in income (loss) from discontinued operations in the accompanying condensed consolidated statements of income and will continue to be reported within discontinued operations in the future. Revenues and other activities associated with dealerships classified as discontinued operations were as follows:

 

 

 

Three Months Ended March 31,

 

 

 

 

 

2015

 

 

2014

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

(335

)

 

$

(588

)

 

 

Gain (loss) on disposal

 

 

-

 

 

 

(45

)

 

 

Lease exit accrual adjustments and charges

 

 

(356

)

 

 

(332

)

 

 

Pre-tax income (loss)

 

$

(691

)

 

$

(965

)

 

 

Total revenues

 

$

-

 

 

$

-

 

 

    

Beginning with disposals occurring during the second quarter ended June 30, 2014, only the operating results of disposals that represent a strategic shift that has (or will have) a major impact on Sonic’s results of operations and financial position will be included in the income (loss) from discontinued operations in the accompanying condensed consolidated statements of income.

Revenues and other activities associated with disposed dealerships that remain in continuing operations were as follows:

 

 

 

Three Months Ended March 31,

 

 

 

 

 

2015

 

 

2014

 

 

 

 

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

Income (loss) from operations

 

$

252

 

 

$

(513

)

 

 

Gain (loss) on disposal

 

 

(102

)

 

 

363

 

 

 

Pre-tax income (loss)

 

$

150

 

 

$

(150

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues

 

$

-

 

 

$

72,449