XML 51 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Note 11 - Discontinued Operations
 6 Months Ended
Jun. 30, 2014
Discontinued Operations and Disposal Groups [Abstract]  
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management team believes it is unlikely changes will be made to the plan or the plan to dispose of the store will be withdrawn.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.


On May 1, 2014, we completed the sale of our one store which had been classified as held for sale since October 2012. As of June 30, 2014, we have no stores or properties classified as held for sale.


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. For the six months ended June 30, 2014 and 2013, interest expense included as a component of discontinued operations was immaterial.


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


   

Three Months Ended

June 30,

   

Six Months Ended

June 30,

 
   

2014

   

2013

   

2014

   

2013

 

Revenue

  $ 3,920     $ 10,078     $ 12,569     $ 18,878  
                                 

Pre-tax income (loss) from discontinued operations

  $ (532 )   $ 409     $ (467 )   $ 693  

Net gain on disposal activities

    5,744       -       5,744       -  
      5,212       409       5,277       693  

Income tax expense

    (2,073 )     (135 )     (2,098 )     (246 )

Income from discontinued operations, net of income tax expense

  $ 3,139     $ 274     $ 3,179     $ 447  

Goodwill and other intangible assets disposed of

    221       -       221       -  

Cash generated from disposal activities

    10,617       -       10,617       -  

Floor plan debt paid in connection with disposal activities

    3,311       -       3,311       -