15. Summary of Quarterly Financial Data (Unaudited)

The following table summarizes Sonic’s results of operations as presented in the accompanying consolidated statements of income by quarter for 2017 and 2016:

	First Quarter			Second Quarter		Third Quarter		Fourth Quarter
	(In thousands, except per share data)
Year Ended December 31, 2017
Total revenues (1)	$	2,287,822		$	2,405,746	$	2,505,701	$	2,667,939
Gross profit (1)	$	350,346		$	360,618	$	362,622	$	384,090
Net income (loss) (2)	$	(541	)	$	12,132	$	19,440	$	61,952
Earnings (loss) per common share - Basic (2) (3)	$	(0.01	)	$	0.27	$	0.45	$	1.43
Earnings (loss) per common share - Diluted (2) (3)	$	(0.01	)	$	0.27	$	0.44	$	1.42
Year Ended December 31, 2016
Total revenues (1)	$	2,234,626		$	2,382,312	$	2,557,928	$	2,556,913
Gross profit (1)	$	345,150		$	353,305	$	359,085	$	371,734
Net income (loss) (2)	$	14,624		$	22,822	$	18,111	$	37,636
Earnings (loss) per common share - Basic (2) (3)	$	0.31		$	0.50	$	0.40	$	0.84
Earnings (loss) per common share - Diluted (2) (3)	$	0.31		$	0.50	$	0.40	$	0.83

(1)	Results are for continuing operations.

(2)	Results include both continuing operations and discontinued operations.

(3)	The sum of net income per common share for the quarters may not equal the full year amount due to weighted average common shares being calculated on a quarterly versus annual basis.

Operations are subject to seasonal variations. The first quarter normally contributes less operating profit than the second and third quarters, while the fourth quarter normally contributes the highest operating profit of any quarter. Parts and service demand remains more stable throughout the year.

Net income for the fourth quarter ended December 31, 2017 includes a tax benefit of approximately $28.4 million related to the deferred income tax impact of the change in U.S. statutory federal income tax rate from 35.0% in 2017 to 21.0% in periods thereafter, a pre-tax benefit of approximately $1.4 million related to storm damage and a pre-tax gain of approximately $1.5 million from the sale of dealership franchises, offset partially by approximately $6.1 million of pre-tax impairment charges related to franchise assets, dealership facility construction projects and other property and equipment write-offs and approximately $1.5 million of pre-tax legal and other charges.

Net income for the third quarter ended September 30, 2017 includes approximately $8.5 million of pre-tax gain from the sale of dealership franchises, offset partially by pre-tax charges of approximately $3.0 million related to storm damage, pre-tax charges of approximately $1.0 million related to legal and other accrual adjustments and approximately $0.2 million of pre-tax impairment charges related to dealership facility construction projects.

Net income for the second quarter ended June 30, 2017 includes pre-tax charges of approximately $4.6 million related to storm damage, approximately $2.6 million of pre-tax impairment charges related to goodwill and certain construction project costs, approximately $1.0 million of pre-tax legal accruals and settlements and approximately $1.0 million of pre-tax lease exit charges.

Net income for the first quarter ended March 31, 2017 includes a pre-tax charge of $15.3 million related to the extinguishment of the 7.0% Notes (including double-carry interest), pre-tax charges of approximately $2.4 million related to storm damage and approximately $0.5 million of pre-tax impairment charges related to the write-off of certain construction project costs, offset partially by a $1.1 million net benefit from legal settlements.

Net income for the fourth quarter ended December 31, 2016 includes a pre-tax benefit of approximately $14.8 million related to a manufacturer legal settlement and a pre-tax benefit of approximately $0.4 million related to storm damage and other accrual adjustments, offset partially by pre-tax impairment charges of approximately $1.8 million primarily related to the write-off of certain construction project costs and pre-tax charges of approximately $0.5 million related to lease exit accrual adjustments in discontinued operations.

Net income for the third quarter ended September 30, 2016 includes approximately $6.1 million of pre-tax impairment charges related to dealership facility construction projects and pre-tax charges of $1.0 million related to lease exit accrual adjustments in discontinued operations, offset partially by a pre-tax benefit of approximately $2.3 million related to storm damage.

Net income for the first quarter ended March 31, 2016 includes pre-tax charges of approximately $6.0 million related to storm damage, offset partially by a pre-tax benefit of approximately $0.5 million related to lease exit accrual adjustments in discontinued operations.