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 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 shops 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 who 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 are 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 millions):



	Three Months Ended March 31,
	2019			2018
Revenues:
Domestic
New vehicle	$	492.4		$	513.5
Used vehicle retail	300.4			264.8
Used vehicle wholesale	29.6			33.6
Finance and insurance	41.8			40.0
Service, body and parts	115.4			107.2
Fleet and other	17.1			11.5
	996.7			970.6
Import
New vehicle	632.6			667.6
Used vehicle retail	341.3			307.7
Used vehicle wholesale	27.9			28.2
Finance and insurance	54.8			51.7
Service, body and parts	117.7			109.6
Fleet and other	17.3			5.6
	1,191.6			1,170.4
Luxury
New vehicle	339.4			278.5
Used vehicle retail	186.3			142.9
Used vehicle wholesale	19.9			14.2
Finance and insurance	16.5			12.3
Service, body and parts	79.1			64.8
Fleet and other	13.7			3.8
	654.9			516.5
	2,843.2			2,657.5
Corporate and other	6.5			2.2
	$	2,849.7		$	2,659.7
Segment income¹:
Domestic	$	19.8		$	25.6
Import	30.0			23.0
Luxury	8.0			6.9
	57.8			55.5
Corporate and other	52.5			41.6
Depreciation and amortization	(19.8		)	(16.8		)
Other interest expense	(15.3		)	(11.8		)
Other income, net	2.6			1.3
Income before income taxes	$	77.8		$	69.8

¹Segment income for each of the segments is defined as income before income taxes, depreciation and amortization, other interest expense and other income, net.



	March 31, 2019		December 31, 2018
Total assets:
Domestic	$	1,506.3	$	1,488.0
Import	1,317.1		1,224.2
Luxury	898.0		934.6
Corporate and other	1,970.6		1,737.2
	$	5,692.0	$	5,384.0