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Note 9 - Assets Held for Sale and Discontinued Operations
 6 Months Ended
Jun. 30, 2015
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note 9. Assets Held for Sale and Discontinued Operations


Assets Held for Sale


We classify an asset group as held for sale if we have ceased operations at that location or the store meets the criteria required by U.S. generally accepted accounting standards as follows:


 

●

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management team believes it is unlikely changes will be made to the plan or the plan to dispose of the store will be withdrawn.

As of December 31, 2014, we had two Import stores classified as held for sale. During the first six months of 2015, we completed the sale of both of these Import stores, and recognized a gain of $5.9 million as a component of selling, general and administrative on our Consolidated Statements of Operations for the six months ended June 30, 2015.


As of June 30, 2015, we no longer had any stores classified as held for sale. Assets held for sale included the following (in thousands):


   

June 30,

2015

    

December 31,

2014

  

Inventories

   $ -     $ 6,284  

Property, plant and equipment

     -       1,739  

Intangible assets

     -       540  
    $ -     $ 8,563  

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


   

June 30,

2015

    

December 31,

2014

  

Floor plan notes payable

   $ -     $ 4,892  

Discontinued Operations and the Sales of Stores


In the third quarter of 2014, we early-adopted guidance that redefined discontinued operations. As a result, we determined that individual stores which met the criteria for held for sale after our adoption date would no longer qualify for classification as discontinued operations. We had previously reclassified a store’s operations to discontinued operations in our Consolidated Statements of Operations, on a comparable basis for all periods presented, provided we did not expect to have any significant continuing involvement in the store’s operations after its disposal.


Certain financial information related to discontinued operations and sales of stores was as follows (in thousands):


   

Three Months Ended

June 30,

    

Six Months Ended

June 30,

  
   

2015

    

2014

    

2015

    

2014

  

Revenue

   $ -     $ 3,920     $ -     $ 12,569  
                                 

Pre-tax loss from discontinued operations

   $ -     $ (532 )   $ -     $ (467 )

Net gain on disposal activities

     -       5,744       -       5,744  
      -       5,212       -       5,277  

Income tax expense

     -       (2,073 )     -       (2,098 )

Income from discontinued operations, net of income tax expense

   $ -     $ 3,139     $ -     $ 3,179  
                                 

Goodwill and other intangible assets disposed of

   $ 157     $ 221     $ 246     $ 221  

Cash generated from disposal activities

     9,286       10,617       12,966       10,617  

Floor plan debt paid in connection with disposal activities

     2,192       3,311       4,400       3,311