Note 10 - Restructuring Costs

9 Months Ended

Sep. 30, 2016

Notes to Financial Statements

Restructuring and Related Activities Disclosure [Text Block]

10 – Restructuring Costs

During the first quarter of 2016, the Company instituted plans to consolidate its dealership network. The Company incurred pre-tax expense of approximately $9.0 million related to costs associated with the restructuring activities, including asset impairment charges, in the nine months ended September 30, 2016.

The restructuring costs included $3.2 million associated with impairment charges to certain fixed assets and the value of the real estate underlying the affected locations, which was reported in selling, general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income. See Note 6 – Financial Instruments and Fair Value, for further discussion on the impairment charge related to the value of real estate in the affected locations. The restructuring costs also included $0.7 million associated with severance benefits for the reduction of approximately 100 employees, lease cancellation fees and contract termination costs that were reported as selling, general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income.

In addition, the Company classified certain excess real estate as held for sale, which resulted in an impairment charge of $5.0 million that was reported in selling, general and administrative expenses in the Consolidated Statements of Income and Comprehensive Income for the nine months ended September 30, 2016.

During the quarter ended September 30, 2016, the Company sold two of the properties with a cost basis of $4.4 million.

As of September 30, 2016, the remaining real estate associated with the restructuring activities and owned by the Company and the Company’s excess real estate is included in assets held for sale on the Consolidated Balance Sheets.

The restructuring costs and the assets held for sale are reported under the Truck Segment.