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Acquisitions | 6 Months Ended
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Jun. 30, 2018
Business Combinations [Abstract] |
Acquisitions | Acquisitions In the first six months of 2018, we completed the following acquisitions:
• | On January 15, 2018, Ray Laks Honda in Orchard Park, New York and Ray Laks Acura in Buffalo, New York.
• | On February 26, 2018, Day Auto Group, a seven store platform based in Pennsylvania.
• | On March 1, 2018, Prestige Auto Group, a six store platform based in New Jersey and New York.
• | On April 2, 2018, Broadway Ford in Idaho Falls, Idaho.
• | On April 23, 2018, Buhler Ford in Eatontown, New Jersey.
Revenue and net loss contributed by the 2018 acquisitions subsequent to the date of acquisition were as follows (in thousands):
Revenue | $ | 360,442 |
Net loss | $ | (946 | )
In 2017, we completed the following acquisitions:
• | On May 1, 2017, we acquired Baierl Auto Group, an eight store platform based in Pennsylvania.
• | On August 7, 2017, we acquired Downtown LA ("DTLA") Auto Group, a seven store platform based in California.
• | On November 11, 2017, we acquired Albany CJD Fiat in Albany, New York.
• | On November 15, 2017, we acquired Crater Lake Ford Lincoln and Crater Lake Mazda in Medford, Oregon.
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. The following tables summarize the consideration paid for the 2018 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 |  | $ | 374,664 |
Debt issued |  | 125,055 |
|  | $ | 499,719 |
The purchase price allocations for the Downtown LA Auto Group, Albany CJD Fiat, Crater Lake Ford Lincoln, Crater Lake Mazda, Ray Laks Honda, Ray Laks Acura, Day Auto Group, Prestige Auto Group, Broadway Ford, and Buhler Ford acquisitions are preliminary and we have not obtained and evaluated all of the detailed information necessary to finalize the opening balance sheet amounts in all respects. We recorded the purchase price allocations based upon information that is currently available. Unallocated items are recorded as a component of other non-current assets in the Consolidated Balance Sheets.
|  | Assets Acquired and Liabilities Assumed
Accounts receivable |  | $ | 732 |
Inventories, net |  | 180,035 |
Property and equipment, net |  | 9,850 |
Other non-current assets |  | 322,006 |
Floor plan notes payable |  | (10,776 | )
Other long-term liabilities |  | (2,128 | )
|  | $ | 499,719 |
In the three and six-month periods ended June 30, 2018, we recorded $3.3 million and $4.2 million in acquisition related expenses as a component of selling, general and administrative expense. Comparatively, we recorded $2.1 million and $2.2 million, respectively, of acquisition related expenses in the same periods in 2017. The following unaudited proforma summary presents consolidated information as if all acquisitions in the three and six-month periods ended June 30, 2018 and 2017 had occurred on January 1, 2017 (in thousands, except per share amounts):
|  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  | 2018 |  | 2017 |  | 2018 |  | 2017
Revenue |  | $ | 3,101,600 |  |  | $ | 3,054,987 |  |  | $ | 5,956,427 |  |  | $ | 5,906,047 |
Net income |  | 60,678 |  |  | 56,126 |  |  | 111,419 |  |  | 109,162 |
Basic net income per share |  | 2.45 |  |  | 2.24 |  |  | 4.47 |  |  | 4.35 |
Diluted net income per share |  | 2.44 |  |  | 2.24 |  |  | 4.45 |  |  | 4.34 |
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 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 proforma adjustments directly attributable to the acquisitions are included in the reported proforma revenues and earnings.

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- Definition The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -URI http://asc.fasb.org/topic&trid=2303972 + Details
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