XML 67 R16.htm IDEA: XBRL DOCUMENT v3.3.0.814
Note 9 - Acquisitions
 9 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
Business Combination Disclosure [Text Block]
Note
9
. Acquisitions
In the first nine months of 2015, we completed the following acquisitions, which contributed revenues of $10.5 million for the nine months ended September 30, 2015:
 
●
On May 14, 2015, we acquired a smart franchise from Smart Center of Omaha.
 
●
On July 31, 2015, we acquired Bitterroot Ford in Missoula, Montana.
 
●
On August 20, 2015, we acquired Acura of Honolulu in Honolulu, Hawaii.
 
●
On September 28, 2015, we acquired Bennett Motors in Great Falls, Montana.
 
All acquisitions were accounted for as business combinations under the acquisition method of accounting. The results of operations of the acquired stores are included in our Consolidated Financial Statements from the date of acquisition.
 
No portion of the purchase price was paid with our equity securities. The following table summarizes the consideration paid for the acquisitions and the amount of identified assets acquired and liabilities assumed as of the acquisition date (in thousands):
 
 
Consideration
 
Cash paid, net of cash acquired
   $ 34,920  
Debt issued
     2,160  
    $ 37,080  
 
 
 
Assets Acquired and Liabilities Assumed
 
Inventories
   $ 12,551  
Franchise value
     4,331  
Property, plant and equipment
     10,990  
Other assets
     178  
Other liabilities
     (2,468 )
      25,582  
Goodwill
     11,498  
    $ 37,080  
 
We account for franchise value as an indefinite-lived intangible asset. We expect the full amount of the goodwill recognized to be deductible for tax purposes.
 
The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three- and nine-month periods ended September 30, 2015 and 2014 had occurred on January 1, 2014 (in thousands, except for per share amounts):
 
Three Months Ended September 30,
 
2015
 
 
2014
 
Revenue
   $ 2,102,459     $ 1,424,809  
Income from continuing operations, net of tax
     43,293       35,672  
Basic income per share from continuing operations, net of tax
     1.65       1.37  
Diluted income per share from continuing operations, net of tax
     1.63       1.35  
 
Nine Months Ended September 30,
 
201
5
 
 
2014
 
Revenue
   $ 5,936,256     $ 3,991,066  
Income from continuing operations, net of tax
     134,738       97,903  
Basic income per share from continuing operations, net of tax
     5.12       3.76  
Diluted income per share from continuing operations, net of tax
     5.08       3.72  
 
These amounts have been calculated by applying our accounting policies and estimates. The results of the acquired stores have been adjusted to reflect the following: depreciation on a straight-line basis over the expected lives for property, plant and equipment; accounting for inventory on a specific identification method; and recognition of interest expense for real estate financing related to stores where we purchased the facility. No nonrecurring pro forma adjustments directly attributable to the acquisitions are included in the reported pro forma revenues and earnings.