XML 90 R14.htm IDEA: XBRL DOCUMENT v2.4.1.9
Discontinued Operations and Divestitures
 12 Months Ended
Dec. 31, 2014
Discontinued Operations and Divestitures  
Discontinued Operations and Divestitures

 

4. Discontinued Operations and Divestitures

Discontinued Operations

        We account for dispositions as discontinued operations when it is evident that the operations and cash flows of an entity being disposed of will be eliminated from ongoing operations and that we will not have any significant continuing involvement in its operations.

        In evaluating whether the cash flows of a dealership in our Retail reportable segment will be eliminated from ongoing operations, we consider whether it is likely that customers will migrate to similar franchises that we own in the same geographic market. Our consideration includes an evaluation of the brands sold at other dealerships we operate in the market and their proximity to the disposed dealership. When we dispose of franchises, we typically do not have continuing brand representation in that market. If the franchise being disposed of is located in a complex of PAG owned dealerships, we do not treat the disposition as a discontinued operation if we believe that the cash flows previously generated by the disposed franchise will be replaced by expanded operations of the remaining or replacement franchises.

        Combined financial information regarding entities accounted for as discontinued operations follows:

                                                                                                                                                                                    

 

 

 

Year Ended December 31,

 

 

 

2014

 

2013

 

2012

 

Revenues

 

$
261.7

 

$
524.8

 

$
690.5

 

Pre-tax loss

 

 
(35.6

)

 
(6.2

)

 
(18.2

)

Gain on disposal

 

 
14.8

 

 
0.8

 

 
8.1

 

 

                                                                                                                                                                                    

 

 

 

December 31,

 

 

 

2014

 

2013

 

Inventory

 

$
34.7 

 

$
72.6 

 

Other assets

 

 
151.4 

 

 
181.2 

 

​

​

​  

​  

​

​  

​  

​

Total assets

 

 
186.1 

 

 
253.8 

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​  

Floor plan notes payable (including non-trade)

 

 
27.9 

 

 
57.5 

 

Other liabilities

 

 
104.8 

 

 
109.0 

 

​

​

​  

​  

​

​  

​  

​

Total liabilities

 

 
132.7 

 

 
166.5 

 

​

​

​  

​  

​

​  

​  

​

​

​

​  

​  

​

​  

​  

​  

Divestitures

        During the first quarter of 2015, we divested our car rental business which included Hertz car rental franchises in the Memphis, Tennessee market and certain markets throughout Indiana. We received proceeds of $17.8 million from the sale excluding sales of car rental vehicles. The results of operations of our car rental business are included in discontinued operations for the years ended December 31, 2014, 2013, and 2012.