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Segments | 9 Months Ended
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Sep. 30, 2017
Segment Reporting [Abstract] |
Segments | Segments While we have determined that each individual store is a reporting unit, we have aggregated our reporting units 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, as well as, automotive finance and insurance products. Corporate and other revenue and income includes the results of operations of our stand-alone body shop 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, except 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,
|  | 2017 |  | 2016 |  | 2017 |  | 2016
Revenues: |  |  |  |  |  |  |  |
Domestic |  | $ | 1,008,310 |  |  | $ | 893,156 |  |  | $ | 2,863,018 |  |  | $ | 2,495,468 |
Import |  | 1,209,955 |  |  | 983,947 |  |  | 3,276,667 |  |  | 2,777,007 |
Luxury |  | 463,518 |  |  | 392,537 |  |  | 1,246,484 |  |  | 1,111,215 |
|  | 2,681,783 |  |  | 2,269,640 |  |  | 7,386,169 |  |  | 6,383,690 |
Corporate and other |  | (1,441 | ) |  | 327 |  |  | (2,690 | ) |  | 2,477 |
|  | $ | 2,680,342 |  |  | $ | 2,269,967 |  |  | $ | 7,383,479 |  |  | $ | 6,386,167 |
Segment income 1: |  |  |  |  |  |  |  |
Domestic |  | $ | 31,141 |  |  | $ | 32,292 |  |  | $ | 84,440 |  |  | $ | 84,420 |
Import |  | 36,954 |  |  | 32,934 |  |  | 91,365 |  |  | 86,878 |
Luxury |  | 7,515 |  |  | 7,423 |  |  | 22,542 |  |  | 21,736 |
|  | 75,610 |  |  | 72,649 |  |  | 198,347 |  |  | 193,034 |
Corporate and other |  | 34,541 |  |  | 26,794 |  |  | 111,281 |  |  | 81,881 |
Depreciation and amortization |  | (14,828 | ) |  | (12,206 | ) |  | (41,598 | ) |  | (36,372 | )
Other interest expense |  | (9,905 | ) |  | (5,647 | ) |  | (23,745 | ) |  | (16,608 | )
Other income (expense), net |  | 1,125 |  |  | (1,513 | ) |  | 11,357 |  |  | (4,534 | )
Income before income taxes |  | $ | 86,543 |  |  | $ | 80,077 |  |  | $ | 255,642 |  |  | $ | 217,401 |
1 Segment income for each of the segments is defined as income before income taxes, depreciation and amortization, other interest expense and other income (expense), net.
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2017 |  | 2016 |  | 2017 |  | 2016
Floor plan interest expense: |  |  |  |  |  |  |  |
Domestic |  | $ | 9,900 |  |  | $ | 6,303 |  |  | $ | 26,570 |  |  | $ | 19,031 |
Import |  | 8,007 |  |  | 4,613 |  |  | 20,608 |  |  | 13,241 |
Luxury |  | 4,494 |  |  | 2,720 |  |  | 11,018 |  |  | 8,027 |
|  | 22,401 |  |  | 13,636 |  |  | 58,196 |  |  | 40,299 |
Corporate and other |  | (11,772 | ) |  | (7,450 | ) |  | (30,183 | ) |  | (21,995 | )
|  | $ | 10,629 |  |  | $ | 6,186 |  |  | $ | 28,013 |  |  | $ | 18,304 |
|  | September 30, 2017 |  | December 31, 2016
Total assets: |  |  |  |
Domestic |  | $ | 1,256,960 |  |  | $ | 1,225,387 |
Import |  | 1,067,466 |  |  | 959,355 |
Luxury |  | 590,515 |  |  | 511,779 |
Corporate and other |  | 1,456,652 |  |  | 1,147,629 |
|  | $ | 4,371,593 |  |  | $ | 3,844,150 |

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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 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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