Discontinued Operations

12 Months Ended

Dec. 31, 2012

Discontinued Operations

Discontinued Operations

4.  Discontinued Operations

We account for dispositions in our retail operations as discontinued operations when it is evident that the operations and cash flows of a franchise being disposed of will be eliminated from on-going operations and that we will not have any significant continuing involvement in its operations.

In evaluating whether the cash flows of a dealership in our Retail reportable segment will be eliminated from ongoing operations, we consider whether it is likely that customers will migrate to similar franchises that we own in the same geographic market. Our consideration includes an evaluation of the brands sold at other dealerships we operate in the market and their proximity to the disposed dealership. When we dispose of franchises, it typically does not have continuing brand representation in that market. If the franchise being disposed of is located in a complex of PAG owned dealerships, we do not treat the disposition as a discontinued operation if we believe that the cash flows previously generated by the disposed franchise will be replaced by expanded operations of the remaining or replacement franchises. Combined financial information regarding dealerships accounted for as discontinued operations follows:

	Year Ended December 31,
	2012			2011		2010
Revenues	$	429,635		$	742,048	$	791,063
Pre-tax (loss) income	(16,389		)	421		(16,322		)
Gain (loss) on disposal	8,059			3,313		(3,955		)

	2012		2011
Inventory	$	53,688	$	85,385
Other assets	40,753		73,858
Total assets	94,441		159,243
Floor plan notes payable (including non-trade)	45,593		79,145
Other liabilities	16,563		23,856
Total liabilities	62,156		103,001