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Segment Information
 12 Months Ended
Dec. 31, 2020
Segment Information  
Segment Information

18. Segment Information

​

Our operations are organized by management into operating segments by line of business and geography. We have determined that we have four reportable segments as defined in generally accepted accounting principles for segment reporting: (i) Retail Automotive, consisting of our retail automotive dealership operations; (ii) Retail Commercial Truck, consisting of our retail commercial truck dealership operations in the U.S. and Canada; (iii) Other, consisting of our commercial vehicle and power systems distribution operations and other non-automotive consolidated operations; and (iv) Non-Automotive Investments, consisting of our equity method investments in non-automotive operations which includes our investment in PTS. 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 represent six operating segments: Eastern, Central, and Western United States, Stand-Alone Used United States, International, and Stand-Alone Used International. These 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/or 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, for each of our reportable segments.

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

Retail

​

Retail Commercial

    

​

​

    

Non-Automotive

    

Intersegment

    

​

​

 

​

​

Automotive

​

Truck

​

Other

​

Investments

​

Elimination

​

Total

 

Revenues

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

$

17,928.8

​

$

2,060.9

​

$

454.2

​

$

—

​

$

—

​

$

20,443.9

​

2019

​

 

20,615.8

​

​

2,050.5

​

​

513.1

​

​

—

​

​

—

​

​

23,179.4

​

2018

​

 

20,849.2

​

​

1,374.5

​

​

561.4

​

​

—

​

​

—

​

​

22,785.1

​

Floor plan interest expense

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

$

39.6

​

$

5.6

​

$

1.1

​

$

—

​

$

—

​

$

46.3

​

2019

​

 

74.9

​

​

8.0

​

​

1.6

​

​

—

​

​

—

​

​

84.5

​

2018

​

 

74.9

​

​

4.2

​

​

1.8

​

​

—

​

​

—

​

​

80.9

​

Other interest expense

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

$

114.5

​

$

3.7

​

$

1.4

​

$

—

​

$

—

​

$

119.6

​

2019

​

 

118.4

​

​

3.2

​

​

2.6

​

​

—

​

​

—

​

​

124.2

​

2018

​

 

108.3

​

​

2.4

​

​

4.0

​

​

—

​

​

—

​

​

114.7

​

Depreciation

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

$

103.8

​

$

6.4

​

$

5.3

​

$

—

​

$

—

​

$

115.5

​

2019

​

 

99.1

​

​

5.5

​

​

5.0

​

​

—

​

​

—

​

​

109.6

​

2018

​

 

94.2

​

​

4.3

​

​

5.2

​

​

—

​

​

—

​

​

103.7

​

Equity in earnings of affiliates

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

$

4.4

​

$

—

​

$

—

​

$

164.6

​

$

—

​

$

169.0

​

2019

​

 

5.2

​

​

—

​

​

—

​

​

142.3

​

​

—

​

​

147.5

​

2018

​

 

5.2

​

​

—

​

​

—

​

​

129.6

​

​

—

​

​

134.8

​

Adjusted segment income

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

$

443.4

​

$

78.2

​

$

21.4

​

$

164.6

​

$

—

​

$

707.6

​

2019

​

 

339.9

​

​

86.5

​

​

22.8

​

​

142.3

​

​

—

​

​

591.5

​

2018

​

 

389.7

​

​

62.3

​

​

22.5

​

​

129.6

​

​

—

​

​

604.1

​

​

​

​

​

Total assets, equity method investments, and capital expenditures by reportable segment are as set forth in the table below:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

​

​

​

​

​

​

​

​

​

    

Retail

​

Retail Commercial

    

​

    

Non-Automotive

    

Intersegment

    

​

 

​

​

Automotive

​

Truck

​

Other

​

Investments

​

Elimination

​

Total

 

Total assets

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

$

10,352.8

​

$

839.1

​

$

632.2

​

$

1,423.1

​

$

—

​

$

13,247.2

​

2019

​

 

10,960.1

​

​

1,075.8

​

​

579.9

​

​

1,326.9

​

​

—

​

​

13,942.7

​

Equity method investments

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

$

77.2

​

$

—

​

$

—

​

$

1,423.1

​

$

—

​

$

1,500.3

​

2019

​

 

72.1

​

​

—

​

​

—

​

​

1,326.9

​

​

—

​

​

1,399.0

​

Capital expenditures

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

2020

​

$

175.6

​

$

7.2

​

$

3.1

​

$

—

​

$

—

​

$

185.9

​

2019

​

 

231.9

​

​

9.9

​

​

3.5

​

​

—

​

​

—

​

​

245.3

​

2018

​

 

292.6

​

​

9.3

​

​

3.7

​

​

—

​

​

—

​

​

305.6

​

​

The following table presents revenue and long-lived assets (all non-current assets except goodwill, other indefinite-lived intangible assets, and operating lease right-of-use assets) by geographic area:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Year Ended December 31,

 

​

    

2020

    

2019

    

2018

 

Revenue from external customers:

​

​

​

​

​

​

​

​

​

​

U.S.

​

$

12,105.1

​

$

13,511.8

​

$

12,607.8

​

Non-U.S.

​

 

8,338.8

​

 

9,667.6

​

 

10,177.3

​

Total revenue from external customers

​

$

20,443.9

​

$

23,179.4

​

$

22,785.1

​

Long-lived assets, net:

​

​

​

​

​

​

​

​

​

​

U.S.

​

$

2,605.1

​

$

2,481.1

​

​

​

​

Non-U.S.

​

 

1,325.0

​

 

1,303.8

​

​

​

​

Total long-lived assets

​

$

3,930.1

​

$

3,784.9

​

​

​

​

​

​

The Company’s non-U.S. operations are predominantly based in the U.K.