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Note 2 - Accounts Receivable
 12 Months Ended
Dec. 31, 2014
Receivables [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

(2)           Accounts Receivable


Accounts receivable consisted of the following (in thousands):


December 31,

 

2014

   

2013

 

Contracts in transit

  $ 162,785     $ 85,272  

Trade receivables

    37,194       23,154  

Vehicle receivables

    34,876       23,606  

Manufacturer receivables

    56,008       31,662  

Auto loan receivables

    25,424       11,438  

Other receivables

    4,554       5,622  
      320,841       180,754  

Less: Allowances

    (3,130 )     (546 )

Less: Long-term portion of accounts receivable, net

    (22,332 )     (9,689 )

Total accounts receivable, net

  $ 295,379     $ 170,519  

Accounts receivable classifications include the following:


 

●

Contracts in transit are receivables from various lenders for the financing of vehicles that we have arranged on behalf of the customer and are typically received within five to ten days of selling a vehicle.


 

●

Trade receivables are comprised of amounts due from customers, lenders for the commissions earned on financing and third parties for commissions earned on service contracts and insurance products.


 

●

Vehicle receivables represent receivables for the portion of the vehicle sales price paid directly by the customer.


 

●

Manufacturer receivables represent amounts due from manufacturers, including holdbacks, rebates, incentives and warranty claims.


 

●

Auto loan receivables include amounts due from customers related to retail sales of vehicles and certain finance and insurance products.


Interest income on auto loan receivables is recognized based on the contractual terms of each loan and is accrued until repayment, charge-off or repossession. Direct costs associated with loan originations are capitalized and expensed as an offset to interest income is recognized on the loans. All other receivables are recorded at invoice and do not bear interest until they are 60 days past due.


The allowance for doubtful accounts is estimated based on our historical write-off experience and is reviewed monthly. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance after all appropriate means of collection have been exhausted and the potential for recovery is considered remote. The annual activity for charges and subsequent recoveries is immaterial.


The long-term portion of accounts receivable was included as a component of other non-current assets in the Consolidated Balance Sheets.