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SEGMENTS | 9 Months Ended
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Sep. 30, 2025
Segment Reporting [Abstract] |
SEGMENTS | SEGMENTS We operate in two reportable segments: Vehicle Operations and Financing Operations. Our Vehicle Operations consists of all aspects of our auto merchandising and aftersales operations, excluding financing provided by our Financing Operations. Our Financing Operations segment provides financing to customers buying and leasing retail vehicles from our Vehicle Operations, as well as leasing vehicles from our fleet management services provider. All other remaining unallocated corporate overhead expenses and internal charges are reported under Corporate and Other. Asset information by segment is not utilized for purposes of assessing performance or allocating resources and, as a result, such information has not been presented. The reportable segments identified above represent our business activities for which discrete financial information is available and for which operating results are regularly provided and reviewed by our CODM to allocate resources and assess performance. Our CODM is our Chief Executive Officer. The CODM assesses segment performance using segment income, which is measured as net segment profit before taxes on a U.S. GAAP basis. Total asset information by segment is not regularly provided to our CODM or utilized for purposes of assessing performance or allocating resources and, as a result, such information has not been presented below. Certain financing operations asset information including total managed receivables are used by the financing operations segment manager to manage operations and are included in various reports regularly provided to our CODM. See Note 4 – Finance Receivables. Certain financial information on a segment basis is as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Vehicle operations |  |  |  |  |  |  |
Total revenue | $9,675.8 |  | $9,221.0 |  | $28,437.1 |  | $27,014.7
Total gross profit | 1,466.0 |  | 1,430.4 |  | 4,361.5 |  | 4,189.5
Floor plan interest expense | (57.8) |  | (76.6) |  | (169.8) |  | (214.0)
Personnel expense | (539.6) |  | (505.2) |  | (1,600.3) |  | (1,552.8)
Rent and facility expense | (191.6) |  | (178.9) |  | (555.2) |  | (525.0)
Advertising expense | (72.7) |  | (69.9) |  | (214.9) |  | (206.5)
Other vehicle operations expenses 1 | (283.3) |  | (270.0) |  | (838.2) |  | (782.3)
Vehicle operations income | 321.0 |  | 329.8 |  | 983.1 |  | 908.9
Financing Operations |  |  |  |  |  |  |
Interest and fee income | 104.9 |  | 88.8 |  | 298.0 |  | 249.9
Interest expense | (52.1) |  | (51.2) |  | (150.0) |  | (146.0)
Total interest margin | 52.8 |  | 37.6 |  | 148.0 |  | 103.9
Lease income | 23.4 |  | 25.6 |  | 67.7 |  | 61.2
Lease costs | (18.6) |  | (21.6) |  | (54.0) |  | (51.0)
Lease income, net | 4.8 |  | 4.0 |  | 13.7 |  | 10.2
Provision expense | (25.8) |  | (31.8) |  | (72.5) |  | (77.0)
Other financing operations expenses 2 | (12.7) |  | (11.2) |  | (37.5) |  | (33.0)
Financing operations income (loss) | 19.1 |  | (1.4) |  | 51.7 |  | 4.1
Total segment income for reportable segments | 340.1 |  | 328.4 |  | 1,034.8 |  | 913.0
Corporate and other 3 | 89.2 |  | 80.4 |  | 243.3 |  | 213.7
Depreciation and amortization | (65.5) |  | (63.5) |  | (194.6) |  | (183.6)
Other interest expense | (68.3) |  | (64.5) |  | (200.5) |  | (189.3)
Other (expense) income, net | (13.3) |  | 5.2 |  | 35.9 |  | 35.4
Income before income taxes | $282.2 |  | $285.9 |  | $918.9 |  | $789.1
(1)Other vehicle operations expenses includes management fees, data processing fees, outside services fees, insurance expense, office and other supplies expense, banking expense, and certain overhead expenses. (2)Other financing operations expenses includes personnel expense, data processing fees, outside services fees, expenses attributable to underwriting, funding, and loan servicing, and certain overhead expenses. (3)Corporate and other includes management fee income. The following tables present revenue and long-lived assets (all non-current assets except goodwill, franchise value, and other intangible assets) by geographic area:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
(In millions) | 2025 |  | 2024 |  | 2025 |  | 2024
Revenue from external customers: |  |  |  |  |  |  |
United States | $7,681.7 |  | $7,066.6 |  | $22,242.7 |  | $20,933.4
United Kingdom | 1,716.0 |  | 1,859.3 |  | 5,315.5 |  | 5,220.2
Canada | 278.1 |  | 295.1 |  | 878.9 |  | 861.1
Total revenue from external customers | $9,675.8 |  | $9,221.0 |  | $28,437.1 |  | $27,014.7
(In millions) | September 30, 2025 |  | December 31, 2024
Long-lived assets, net: |  |  |
United States | $10,727.9 |  | $10,124.3
United Kingdom | 1,382.9 |  | 1,360.4
Canada | 468.9 |  | 429.3
Total long-lived assets | $12,579.7 |  | 11,914.0

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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/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name 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