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Note 14 - Segments
 9 Months Ended
Sep. 30, 2015
Notes to Financial Statements  
Segment Reporting Disclosure [Text Block]
Note 14. 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 revenue and income includes the results of operations of our stand-alone collision center offset by unallocated corporate overhead expenses, such as corporate personnel costs, and certain unallocated reserve and elimination adjustments. Additionally, certain internal corporate expense allocations increase segment income for Corporate and other while decreasing segment income for the other reportable segments. These internal corporate expense allocations are used to increase comparability of our dealerships and reflect the capital burden a stand-alone dealership would experience. Examples of these internal allocations include internal rent expense, internal floor plan financing charges, and internal fees charged to offset employees within our corporate headquarters that perform certain dealership functions.
 
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, excepted for the internal allocation within Corporate and other discussed above. Our CODM measures the performance of each operating segment based on several metrics, including earnings from operations, and 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
September
30,
 
 
Nine
Months Ended
September
30,
 
 
 
2015
 
 
2014
 
 
2015
 
 
2014
 
Revenues:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
   $ 814,155     $ 684,835     $ 2,272,914     $ 1,893,014  
Import
     893,465       412,136       2,507,181       1,160,250  
Luxury
     374,390       196,646       1,083,680       541,082  
      2,082,010       1,293,617       5,863,775       3,594,346  
Corporate and other
     2,835       3,494       7,195       2,673  
    $ 2,084,845     $ 1,297,111     $ 5,870,970     $ 3,597,019  
Segment income*:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
   $ 33,176     $ 26,659     $ 91,691     $ 74,528  
Import
     30,506       13,407       73,963       37,351  
Luxury
     8,140       6,227       25,360       14,246  
      71,822       46,293       191,014       126,125  
Corporate and other
     6,555       16,793       51,595       47,831  
Depreciation and amortization
     (10,531 )     (6,067 )     (30,544 )     (17,399 )
Other interest expense
     (4,900 )     (2,051 )     (14,700 )     (5,894 )
Other (expense) income, net
     (307 )     1,027       (1,031 )     3,110  
Income from continuing operations before income taxes
   $ 62,639     $ 55,995     $ 196,334     $ 153,773  
 
*Segment income for each of the segments is defined as Income from continuing operations before income taxes, depreciation and amortization, other interest expense and other (expense) income, net.
 
                                 
Floor plan interest expense:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Domestic
   $ 5,441     $ 4,601     $ 15,083     $ 13,043  
Import
     3,779       1,966       11,227       5,698  
Luxury
     2,345       1,062       6,715       3,227  
      11,565       7,629       33,025       21,968  
Corporate and other
     (6,614 )     (4,502 )     (18,770 )     (12,642 )
    $ 4,951     $ 3,127     $ 14,255     $ 9,326  
 
 
 
September
30,
2015
 
 
December 31,
2014
 
Total assets:
 
 
 
 
 
 
 
 
Domestic
   $ 961,582     $ 829,721  
Import
     700,042       698,015  
Luxury
     431,577       405,222  
Corporate and other
     966,628       947,974  
    $ 3,059,829     $ 2,880,932