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Note 11 - Discontinued Operations
 6 Months Ended
Jun. 30, 2013
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 11. Discontinued Operations


We classify a store as discontinued operations if the location has been sold, we have ceased operations at that location or the store meets the criteria required by U.S. generally accepted accounting standards:


 

● 

our management team, possessing the necessary authority, commits to a plan to sell the store;


 

● 

the store is available for immediate sale in its present condition;


 

● 

an active program to locate buyers and other actions that are required to sell the store are initiated;


 

● 

a market for the store exists and we believe its sale is likely within one year;


 

● 

active marketing of the store commences at a price that is reasonable in relation to the estimated fair market value; and


 

● 

our management team believes it is unlikely changes will be made to the plan or the plan to dispose of the store will be withdrawn.


We reclassify the store’s operations to discontinued operations in our Consolidated Statements of Operations, on a comparable basis for all periods presented, provided we do not expect to have any significant continuing involvement in the store’s operations after its disposal.


As of June 30, 2013, one of our stores continues to meet the criteria for classification of its assets and related liabilities as held for sale and its associated operating results are classified as discontinued operations.


Actual floor plan interest expense for the store classified as discontinued operations is directly related to the store’s new vehicles. Interest expense related to our used vehicle inventory financing and revolving line of credit is allocated based on the working capital level of the store.


Certain financial information related to discontinued operations was as follows (in thousands):


   

Three Months Ended

June 30, 

   

Six Months Ended

June 30, 

 
   

2013

   

2012

   

2013

   

2012

 

Revenue

  $ 10,078     $ 24,782     $ 18,878     $ 45,429  
                                 

Income from discontinued operations

  $ 409     $ 771     $ 693     $ 1,028  

Income tax expense

    (135 )     (285 )     (246 )     (380 )

Income from discontinued operations, net of income tax expense

  $ 274     $ 486     $ 447     $ 648  

Assets held for sale included the following (in thousands):


   

June 30, 2013

   

December 31, 2012

 

Inventories

  $ 7,486     $ 9,412  

Property, plant and equipment

    1,176       1,102  

Intangible assets

    2,071       2,065  
    $ 10,733     $ 12,579  

Liabilities related to assets held for sale included the following (in thousands):


   

June 30, 2013

   

December 31, 2012

 

Floor plan notes payable

  $ 6,378     $ 8,347