Note 10 - Assets Held for Sale and Discontinued Operations

9 Months Ended

Sep. 30, 2015

Notes to Financial Statements

Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]

Note

10

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Assets Held for Sale and Discontinued Operations

Assets Held for Sale

We classify an asset group as held for sale if we have ceased operations at that location or the store meets the criteria required by U.S. generally accepted accounting standards as follows:

● our management team, possessing the necessary authority, commits to a plan to sell the store;

● the store is available for immediate sale in its present condition;

● an active program to locate buyers and other actions that are required to sell the store are initiated;

● a market for the store exists and we believe its sale is likely within one year;

● active marketing of the store commences at a price that is reasonable in relation to the estimated fair market value; and

● our management team believes it is unlikely changes will be made to the plan or the plan to dispose of the store will be withdrawn.

As of December 31, 2014, we had two Import stores classified as held for sale. During the first nine months of 2015, we completed the sale of both of these Import stores, and recognized a gain of $5.9 million as a component of selling, general and administrative in our Consolidated Statements of Operations for the nine months ended September 30, 2015.

As of September 30, 2015, we no longer had any stores classified as held for sale. Assets held for sale included the following (in thousands):

	September 30, 201 5		December 31, 2014
Inventories	$	-	$	6,284
Property, plant and equipment		-		1,739
Intangible assets		-		540
	$	-	$	8,563

Liabilities related to assets held for sale included the following (in thousands):

	September 30 , 201 5		December 31, 201 4
Floor plan notes payable	$	-	$	4,892

Discontinued Operations

and the Sales of Stores

In the third quarter of 2014, we early-adopted guidance that redefined discontinued operations. As a result, we determined that individual stores which met the criteria for held for sale after our adoption date would no longer qualify for classification as discontinued operations. We had previously reclassified a store’s operations to discontinued operations in our Consolidated Statements of Operations, on a comparable basis for all periods presented, provided we did not expect to have any significant continuing involvement in the store’s operations after its disposal.

Certain financial information related to discontinued operations and sales of stores was as follows (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2015		2014		2015		2014
Revenue	$	-	$	-	$	-	$	12,569
Pre-tax loss from discontinued operations	$	-	$	-	$	-	$	(467	)
Net gain on disposal activities		-		-		-		5,744
		-		-		-		5,277
Income tax expense		-		-		-		(2,098	)
Income from discontinued operations, net of income tax expense	$	-	$	-	$	-	$	3,179
Goodwill and other intangible assets disposed of	$	-	$	-	$	282	$	221
Cash generated from disposal activities		-		-		12,966		10,617
Floor plan debt paid in connection with disposal activities		-		-		4,400		3,311