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Note 12 - Segments
 6 Months Ended
Jun. 30, 2015
Segment Reporting [Abstract]  
Segment Reporting Disclosure [Text Block]

Note 12. Segments


While we have determined that each individual store is an operating segment, we have aggregated our operating segments into three reportable segments based on their economic similarities: Domestic, Import and Luxury.


Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors and Ford. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Honda, Toyota, Subaru, Nissan and Volkswagen. Our Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by BMW, Mercedes-Benz and Lexus. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products.


Corporate and other is comprised of our stand-alone collision center; unallocated corporate overhead expenses, such as corporate personnel costs, certain interest expense and depreciation expense, and retrospective commissions for certain finance and insurance transactions that we arrange under agreements with third parties.


We define our chief operating decision maker (“CODM”) to be certain members of our executive management group. Historical and forecasted operational performance is evaluated on a store-by-store basis and on a consolidated basis by the CODM. We derive the operating results of the segments directly from our internal management reporting system. The accounting policies used to derive segment results are substantially the same as those used to determine our consolidated results. Management measures the performance of each operating segment based on several metrics, including earnings from operations. Management uses these results, in part, to evaluate the performance of, and to allocate resources to, each of the operating segments.


Certain financial information on a segment basis is as follows (in thousands):


   

Three Months Ended

June 30,

    

Six Months Ended

June 30,

  
   

2015

    

2014

    

2015

    

2014

  

Revenues:

                                

Domestic

   $ 768,989     $ 641,378     $ 1,460,393     $ 1,210,308  

Import

     853,444       394,924       1,612,082       745,985  

Luxury

     372,369       185,826       709,290       344,437  
      1,994,802       1,222,128       3,781,765       2,300,730  

Corporate and other

     2,145       (326 )     4,360       (822 )
    $ 1,996,947     $ 1,221,802     $ 3,786,125     $ 2,299,908  
                                 

Segment income*:

                                

Domestic

   $ 31,045     $ 25,288     $ 58,174     $ 47,710  

Import

     25,904       14,768       42,005       24,033  

Luxury

     9,515       5,832       15,414       8,017  
      66,464       45,888       115,593       79,760  

Corporate and other

     9,175       11,186       18,102       18,018  

Income from continuing operations before income taxes

   $ 75,639     $ 57,074     $ 133,695     $ 97,778  

*Segment income is defined as operating income less floor plan interest expense.

Floor plan interest expense:

                                

Domestic

   $ 4,932     $ 4,404     $ 9,669     $ 8,463  

Import

     3,724       1,904       7,422       3,711  

Luxury

     2,308       1,036       4,369       2,165  
      10,964       7,344       21,460       14,339  

Corporate and other

     (6,309 )     (4,129 )     (12,156 )     (8,140 )
    $ 4,655     $ 3,215     $ 9,304     $ 6,199  

   

June 30,

2015

    

December 31,

2014

  

Total assets:

                

Domestic

   $ 922,933     $ 831,574  

Import

     711,944       696,162  

Luxury

     422,318       405,222  

Corporate and other

     947,660       947,974  
    $ 3,004,855     $ 2,880,932