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Segment Information | 12 Months Ended
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Dec. 31, 2015
Segment Information |
Segment Information | 17. Segment Information Our operations are organized by management into operating segments by line of business and geography. We have determined that we have three reportable segments as defined in generally accepted accounting principles for segment reporting: (i) Retail Automotive, consisting of retail automotive dealership operations, (ii) Retail Commercial Truck, consisting of our U.S. retail commercial truck dealership operations, and (iii) Other, consisting of our commercial vehicle and power systems distribution operations and our other investments in non-automotive operations. The Retail Automotive reportable segment includes all automotive dealerships and all departments relevant to the operation of the dealerships and our retail automotive joint ventures. The individual dealership operations included in the Retail Automotive reportable segment have been grouped into four geographic operating segments: Eastern, Central, and Western United States and International. The geographic operating segments have been aggregated into one reportable segment as their operations (A) have similar economic characteristics (all are automotive dealerships having similar margins), (B) offer similar products and services (all sell new and used vehicles, service, parts and third-party finance and insurance products), (C) have similar target markets and customers (generally individuals) and (D) have similar distribution and marketing practices (all distribute products and services through dealership facilities that market to customers in similar fashions). The accounting policies of the segments are the same and are described in Note 1. The following table summarizes revenues, floor plan interest expense, other interest expense, depreciation, equity in earnings of affiliates, and income (loss) from continuing operations before certain non‑recurring items and income taxes, which is the measure by which management allocates resources to its segments and which we refer to as adjusted segment income (loss), for each of our reportable segments. Adjusted segment income excludes the items in the table below in order to enhance the comparability of segment income from period to period.
|  |  |  | Retail |  |  |  |  |  |  |  |  |
|  | Retail |  |  | Commercial |  |  |  |  | Intersegment |  |  |  |
|  | Automotive |  | Truck |  | Other |  | Elimination |  | Total |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 |  | $ | 17,896.3 |  | $ | 944.1 |  | $ | 446.4 |  | $ | (1.9) |  | $ | 19,284.9 |
2014 |  |  | 16,657.5 |  |  | 125.6 |  |  | 454.0 |  |  | (5.1) |  |  | 17,232.0 |
2013 |  |  | 14,329.9 |  |  | — |  |  | 152.6 |  |  | — |  |  | 14,482.5 |
Floor plan interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 |  | $ | 41.3 |  | $ | 2.0 |  | $ | 1.2 |  | $ | — |  | $ | 44.5 |
2014 |  |  | 45.1 |  |  | 0.3 |  |  | 1.1 |  |  | — |  |  | 46.5 |
2013 |  |  | 42.8 |  |  | — |  |  | 0.6 |  |  | — |  |  | 43.4 |
Other interest expense |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 |  | $ | 56.8 |  | $ | 3.8 |  | $ | 8.8 |  | $ | — |  | $ | 69.4 |
2014 |  |  | 46.9 |  |  | 0.9 |  |  | 5.0 |  |  | — |  |  | 52.8 |
2013 |  |  | 44.2 |  |  | — |  |  | 1.1 |  |  | — |  |  | 45.3 |
Depreciation |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 |  | $ | 71.3 |  | $ | 2.0 |  | $ | 4.7 |  | $ | — |  | $ | 78.0 |
2014 |  |  | 67.1 |  |  | 0.5 |  |  | 2.6 |  |  | — |  |  | 70.2 |
2013 |  |  | 59.1 |  |  | — |  |  | 0.5 |  |  | — |  |  | 59.6 |
Equity in earnings of affiliates |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 |  | $ | 4.4 |  | $ | — |  | $ | 34.9 |  | $ | — |  | $ | 39.3 |
2014 |  |  | 3.8 |  |  | 6.5 |  |  | 30.5 |  |  | — |  |  | 40.8 |
2013 |  |  | 4.9 |  |  | 1.2 |  |  | 24.6 |  |  | — |  |  | 30.7 |
Adjusted segment income |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 |  | $ | 420.4 |  | $ | 35.4 |  | $ | 36.1 |  | $ | — |  | $ | 491.9 |
2014 |  |  | 390.1 |  |  | 11.7 |  |  | 40.1 |  |  | — |  |  | 441.9 |
2013 |  |  | 338.3 |  |  | 1.2 |  |  | 32.3 |  |  | — |  |  | 371.8 |
The following table reconciles total adjusted segment income to consolidated income from continuing operations before income taxes:
|  | Year Ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
Adjusted segment income |  | $ | 491.9 |  | $ | 441.9 |  | $ | 371.8 |
Gain on investment |  |  | — |  |  | 16.0 |  |  | — |
Income from continuing operations before income taxes |  | $ | 491.9 |  | $ | 457.9 |  | $ | 371.8 |
Total assets, equity method investments, and capital expenditures by reporting segment are as set forth in the table below:
|  |  |  | Retail |  |  |  |  |  |  |  |  |
|  | Retail |  |  | Commercial |  |  |  |  | Intersegment |  |  |  |
|  | Automotive |  | Truck |  | Other |  | Elimination |  | Total |
Total assets (1) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 |  | $ | 6,691.4 |  | $ | 525.5 |  | $ | 805.8 |  | $ | — |  | $ | 8,022.7 |
2014 |  |  | 5,920.4 |  |  | 366.1 |  |  | 942.1 |  |  | (0.4) |  |  | 7,228.2 |
Equity method investments |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 |  | $ | 38.3 |  | $ | — |  | $ | 298.1 |  | $ | — |  | $ | 336.4 |
2014 |  |  | 62.8 |  |  | — |  |  | 290.0 |  |  | — |  |  | 352.8 |
Capital expenditures |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
2015 |  | $ | 187.7 |  | $ | 4.5 |  | $ | 7.3 |  | $ | — |  | $ | 199.5 |
2014 |  |  | 170.8 |  |  | 0.4 |  |  | 4.9 |  |  | — |  |  | 176.1 |
2013 |  |  | 175.0 |  |  | — |  |  | — |  |  | — |  |  | 175.0 |
(1)As discussed in Note 4, we treated the operations of our car rental business as discontinued operations. The associated assets have been reclassified to “Assets held for sale” as of December 31, 2015 and 2014 on the Consolidated Balance Sheets and therefore are still included within the Other segment in total assets above. The following table presents certain data by geographic area:
|  | Year Ended December 31, |
|  | 2015 |  | 2014 |  | 2013 |
Revenue from external customers: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 11,806.9 |  | $ | 10,435.9 |  | $ | 9,238.9 |
Non-U.S. |  |  | 7,478.0 |  |  | 6,796.1 |  |  | 5,243.6 |
Total revenue from external customers |  | $ | 19,284.9 |  | $ | 17,232.0 |  | $ | 14,482.5 |
Long-lived assets, net: |  |  |  |  |  |  |  |  |  |
U.S. |  | $ | 1,256.8 |  | $ | 1,177.0 |  |  |  |
Non-U.S. |  |  | 627.0 |  |  | 534.0 |  |  |  |
Total long-lived assets |  | $ | 1,883.8 |  | $ | 1,711.0 |  |  |  |
The Company’s non-U.S. operations are predominantly based in the U.K. The following tables present our revenue from external customers by product type for our Retail Automotive and Retail Commercial Truck segments:
|  | Year Ended December 31, |
Retail Automotive Dealership Revenue |  | 2015 |  | 2014 |  | 2013 |
New vehicle |  | $ | 9,208.9 |  | $ | 8,698.8 |  | $ | 7,528.2 |
Used vehicle |  |  | 5,425.5 |  |  | 4,971.1 |  |  | 4,201.3 |
Finance and insurance, net |  |  | 478.3 |  |  | 436.0 |  |  | 370.4 |
Service and parts |  |  | 1,830.7 |  |  | 1,716.9 |  |  | 1,531.7 |
Fleet and wholesale |  |  | 952.9 |  |  | 834.7 |  |  | 698.3 |
Total retail automotive dealership revenue |  | $ | 17,896.3 |  | $ | 16,657.5 |  | $ | 14,329.9 |
|  | Year Ended December 31, |
Retail Commercial Truck Dealership Revenue |  | 2015 |  | 2014 (1) |  | 2013 (1) |
New truck |  | $ | 572.5 |  | $ | 78.7 |  | $ | — |
Used truck |  |  | 58.7 |  |  | 9.5 |  |  | — |
Finance and insurance, net |  |  | 6.7 |  |  | 0.9 |  |  | — |
Service and parts |  |  | 286.0 |  |  | 33.9 |  |  | — |
Lease, rental and wholesale |  |  | 20.2 |  |  | 2.6 |  |  | — |
Total retail commercial truck dealership revenue |  | $ | 944.1 |  | $ | 125.6 |  | $ | — |
| (1) |  | As we acquired a controlling interest in Premier Truck Group in November 2014, information for the year ended December 31, 2014 represents revenues since our date of acquisition in November 2014. We reported no revenues for this segment for the year ended December 31, 2013.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8906-108599 + Details
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