Note 10 - Acquisitions

9 Months Ended

Sep. 30, 2013

Business Combinations [Abstract]

Business Combination Disclosure [Text Block]

Note 10. Acquisitions

On June 10, 2013, we acquired the inventory, property, equipment and intangible assets and assumed certain liabilities of OB Salem Auto Group, Inc. in Salem, Oregon from Michael O’Brien including BMW, Honda and Volkswagen franchises.

The acquisition was accounted for using the acquisition method of accounting. No portion of the purchase price was paid with our equity securities. The following table summarizes the consideration paid for the acquisition and the amount of identified assets acquired and liabilities assumed as of the acquisition date (in thousands):

	Consideration
Cash paid, net of cash acquired	$	31,786

	Assets Acquired and Liabilities Assumed
Inventories	$	15,198
Franchise value		4,036
Property, plant and equipment		4,697
Other assets		122
Other liabilities		(533	)
		23,520
Goodwill		8,266
	$	31,786

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.

This acquired company contributed revenues and earnings of $26.8 million and $286,000, respectively, for the period from acquisition to September 30, 2013.

The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three- and nine-month periods ended September 30, 2012 and 2013 had occurred on January 1, 2012 (in thousands, except for per share amounts):

Three Months Ended September 30,	2013		2012
Revenue	$	1,069,290	$	909,029
Income from continuing operations, net of tax		30,891		23,409
Basic income per share from continuing operations, net of tax		1.19		0.92
Diluted income per share from continuing operations, net of tax		1.18		0.90

Nine Months Ended September 30,	2013		2012
Revenue	$	3,019,726	$	2,548,136
Income from continuing operations, net of tax		78,500		60,777
Basic income per share from continuing operations, net of tax		3.05		2.36
Diluted income per share from continuing operations, net of tax		3.00		2.32

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.