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These excerpts taken from the AN 10-K filed Feb 17, 2009. Operating
Expenses
Selling,
General, and Administrative Expenses
During 2008, selling, general, and administrative expenses
decreased $186.0 million or 9.3%. As a percentage of total
gross profit, selling, general, and administrative expenses
increased to 76.2% in 2008 from 71.6% in 2007 resulting from
deleveraging of our cost structure due to the decline in
vehicles sales, partially offset by our cost savings initiatives
discussed in “Market Challenges” above. Selling,
general, and administrative expenses decreased in 2008, as
compared to 2007, due to a $120.7 million decrease in
compensation expense and a $44.6 million decrease in gross
advertising expenditures, partially offset by a
$5.1 million decrease in advertising reimbursements from
manufacturers.
During 2007, selling, general, and administrative expenses
decreased $58.1 million or 2.8%. As a percentage of total
gross profit, selling, general, and administrative expenses
increased to 71.6% in 2007 from 70.5% in 2006 resulting from
deleveraging of our cost structure due to the decline in
vehicles sales. Selling, general, and administrative expenses
decreased in 2007, as compared to 2006, due to a
$54.2 million decrease in compensation expense and a
$7.3 million decrease in gross advertising expenditures,
partially offset by a $3.3 million decrease in advertising
reimbursements from manufacturers.
Compensation expense for 2008 includes a $5.3 million
non-cash stock compensation expense adjustment as discussed in
Note 10 of the Notes to Consolidated Financial Statements.
Operating Expenses Selling, General, and Administrative Expenses During 2008, selling, general, and administrative expenses decreased $186.0 million or 9.3%. As a percentage of total gross profit, selling, general, and administrative expenses increased to 76.2% in 2008 from 71.6% in 2007 resulting from deleveraging of our cost structure due to the decline in vehicles sales, partially offset by our cost savings initiatives discussed in “Market Challenges” above. Selling, general, and administrative expenses decreased in 2008, as compared to 2007, due to a $120.7 million decrease in compensation expense and a $44.6 million decrease in gross advertising expenditures, partially offset by a $5.1 million decrease in advertising reimbursements from manufacturers. During 2007, selling, general, and administrative expenses decreased $58.1 million or 2.8%. As a percentage of total gross profit, selling, general, and administrative expenses increased to 71.6% in 2007 from 70.5% in 2006 resulting from deleveraging of our cost structure due to the decline in vehicles sales. Selling, general, and administrative expenses decreased in 2007, as compared to 2006, due to a $54.2 million decrease in compensation expense and a $7.3 million decrease in gross advertising expenditures, partially offset by a $3.3 million decrease in advertising reimbursements from manufacturers. Compensation expense for 2008 includes a $5.3 million non-cash stock compensation expense adjustment as discussed in Note 10 of the Notes to Consolidated Financial Statements. These excerpts taken from the AN 10-K filed Feb 28, 2008. Operating
Expenses
Selling,
General, and Administrative Expenses
During 2007, selling, general, and administrative expenses
decreased $63.7 million or 3.0%. As a percentage of total
gross profit, selling, general, and administrative expenses
increased to 71.9% in 2007 from 70.7% in 2006 resulting from
deleveraging of our cost structure due to the decline in
vehicles sales. Selling, general, and administrative expenses in
2007, as compared to 2006, decreased due to a $58.8 million
decrease in compensation expense and an $8.3 million
decrease in gross advertising expenditures, partially offset by
a $3.7 million decrease in advertising reimbursements from
manufacturers.
During 2006, selling, general, and administrative expenses
increased $66.5 million or 3.3%. As a percentage of total
gross profit, selling, general, and administrative expenses
increased to 70.7% in 2006 from 70.1% in 2005. Increases in
selling, general, and administrative expenses in 2006, compared
to 2005, are primarily due to a $49.8 million increase in
compensation expense, including $15.2 million of non-cash
compensation expense related to the adoption of Statement of
Financial Accounting Standards No. 123 (revised 2004),
“Share-Based Payment,” for stock options during 2006.
Additionally, advertising expenses increased $16.0 million,
resulting from a $7.4 million increase in gross advertising
expenditures and an $8.6 million decrease in advertising
reimbursements from manufacturer. In 2005, selling, general, and
administrative expenses included $10.5 million of property
damage costs related to Hurricane Wilma.
Operating Expenses Selling, General, and Administrative Expenses During 2007, selling, general, and administrative expenses decreased $63.7 million or 3.0%. As a percentage of total gross profit, selling, general, and administrative expenses increased to 71.9% in 2007 from 70.7% in 2006 resulting from deleveraging of our cost structure due to the decline in vehicles sales. Selling, general, and administrative expenses in 2007, as compared to 2006, decreased due to a $58.8 million decrease in compensation expense and an $8.3 million decrease in gross advertising expenditures, partially offset by a $3.7 million decrease in advertising reimbursements from manufacturers. During 2006, selling, general, and administrative expenses increased $66.5 million or 3.3%. As a percentage of total gross profit, selling, general, and administrative expenses increased to 70.7% in 2006 from 70.1% in 2005. Increases in selling, general, and administrative expenses in 2006, compared to 2005, are primarily due to a $49.8 million increase in compensation expense, including $15.2 million of non-cash compensation expense related to the adoption of Statement of Financial Accounting Standards No. 123 (revised 2004), “Share-Based Payment,” for stock options during 2006. Additionally, advertising expenses increased $16.0 million, resulting from a $7.4 million increase in gross advertising expenditures and an $8.6 million decrease in advertising reimbursements from manufacturer. In 2005, selling, general, and administrative expenses included $10.5 million of property damage costs related to Hurricane Wilma. This excerpt taken from the AN 10-K filed Feb 28, 2007. Operating
Expenses
Selling,
General and Administrative Expenses
During 2006, selling, general and administrative expenses
increased $64.1 million, or 3.1%. As a percentage of total
gross profit, selling, general and administrative expenses
increased to 71.1% in 2006 from 70.4% in 2005. Increases in
selling, general and administrative expenses in 2006 compared to
2005 are due to an increase in compensation expense, including
$15.2 million of non-cash compensation expense related to
the adoption of SFAS No. 123R for stock options during
2006 and increased advertising expenses, resulting from a
decrease in advertising program participation reimbursed by
manufacturers and an increase in non-reimbursed advertising. In
2005, selling, general and administrative expenses included
property damage costs related to Hurricane Wilma.
During 2005, selling, general and administrative expenses
increased $71.1 million or 3.5%. As a percent of total
gross profit, selling, general and administrative expenses
decreased 40 basis points in spite of property damage costs
related to Hurricane Wilma which impacted our Florida stores
during the fourth quarter of 2005. Improvements are due to our
continued efforts to leverage our cost structure, particularly
in the areas of compensation and other selling, general and
administrative expenses, partially offset by increased occupancy
costs.
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