Quarterly report [Sections 13 or 15(d)]

Business Acquisitions and Dispositions

v3.25.1
Business Acquisitions and Dispositions
 3 Months Ended
Mar. 31, 2025
Business Combination [Abstract]  
Business Acquisitions and Dispositions Business Acquisitions and Dispositions
During the three months ended March 31, 2025 and the three months ended March 31, 2024 we did not acquire any businesses.
During the three months ended March 31, 2025, we terminated one franchise within the Powersports Segment. During the three months ended March 31, 2024, we terminated two luxury franchises, in addition to closing the remaining seven Northwest Motorsport stores within the EchoPark Segment.
Revenues and other activities associated with disposed stores, terminated franchises or closed stores that remain in continuing operations were as follows:
Three Months Ended March 31,
2025 2024
(In millions)
Income (loss) from operations $ (2.6) $ (4.9)
Gain (loss) on disposal, termination and closure charges
 (1.2) (1.7)
Lease exit accrual adjustments and charges 1.1  2.4 
Pre-tax income (loss) (2.7) (4.2)
Total revenues $ 1.5  $ 13.2 
Segment Information
9. Segment Information
As of March 31, 2025, Sonic had three operating segments: (1) the Franchised Dealerships Segment; (2) the EchoPark Segment; and (3) the Powersports Segment. Refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” to the consolidated financial statements in Sonic's Annual Report on Form 10-K for the year ended December 31, 2024 for additional discussion of our operating segments. Sonic has determined that its operating segments also represent its reportable segments.
The reportable segments identified above are the business activities of Sonic for which discrete financial information is available and for which operating results are regularly reviewed by Sonic’s chief operating decision maker to assess operating performance and allocate resources. Sonic’s chief operating decision maker is a group of three individuals consisting of: (1) the Company’s Chief Executive Officer; (2) the Company’s President; and (3) the Company’s Chief Financial Officer. The chief operating decision makers evaluate segment performance and allocate resources using metrics such as segment gross profit and segment income. These segment profit metrics are consistent across all segments and align with the way we measure profit on a consolidated basis. The accounting policies applied to segments follow those for the Company as a whole.