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SEGMENTS | 6 Months Ended
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Jun. 30, 2026
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 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. We do not utilize asset information by segment for purposes of assessing performance or allocating resources and, as a result, we do not present such information. 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. We do not regularly provide total asset information by segment to our CODM or utilize the information for purposes of assessing performance or allocating resources and, as a result, we do not present such information. 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 June 30, |  | Six Months Ended June 30,
(In millions) | 2026 |  | 2025 |  | 2026 |  | 2025
Vehicle operations |  |  |  |  |  |  |
Total revenue | $9,791.3 |  | $9,583.0 |  | $19,062.7 |  | $18,761.2
Total gross profit | 1,497.4 |  | 1,485.1 |  | 2,919.1 |  | 2,895.4
Floor plan interest expense | (69.7) |  | (55.0) |  | (125.6) |  | (112.0)
Personnel expense | (560.1) |  | (546.6) |  | (1,101.2) |  | (1,060.7)
Rent and facility expense | (201.1) |  | (181.2) |  | (403.3) |  | (363.6)
Advertising expense | (78.5) |  | (72.4) |  | (158.3) |  | (142.3)
Other vehicle operations expenses 1 | (291.9) |  | (276.7) |  | (601.9) |  | (555.0)
Vehicle operations income | 296.1 |  | 353.2 |  | 528.8 |  | 661.9
Financing Operations |  |  |  |  |  |  |
Interest and fee income | 116.4 |  | 98.8 |  | 226.9 |  | 193.2
Interest expense | (53.5) |  | (49.8) |  | (105.2) |  | (97.9)
Total interest margin | 62.9 |  | 49.0 |  | 121.7 |  | 95.3
Lease income | 26.4 |  | 23.7 |  | 50.3 |  | 44.2
Lease costs | (22.5) |  | (18.6) |  | (42.7) |  | (35.4)
Lease income, net | 3.9 |  | 5.1 |  | 7.6 |  | 8.8
Provision expense | (15.8) |  | (21.2) |  | (42.2) |  | (46.7)
Other financing operations expenses 2 | (14.5) |  | (12.8) |  | (29.3) |  | (24.8)
Financing operations income | 36.5 |  | 20.1 |  | 57.8 |  | 32.6
Total segment income for reportable segments | 332.6 |  | 373.3 |  | 586.5 |  | 694.4
Corporate and other 3 | 116.9 |  | 62.2 |  | 212.7 |  | 154.2
Depreciation and amortization | (70.9) |  | (65.2) |  | (140.7) |  | (129.0)
Other interest expense | (62.7) |  | (66.7) |  | (132.9) |  | (132.2)
Other (expense) income, net | 36.2 |  | 48.5 |  | (31.5) |  | 49.3
Income before income taxes | $352.1 |  | $352.1 |  | $494.1 |  | $636.7
(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 table presents revenue by geographic area:
| Three Months Ended June 30, |  | Six Months Ended June 30,
(In millions) | 2026 |  | 2025 |  | 2026 |  | 2025
Revenue from external customers: |  |  |  |  |  |  |
United States | $7,575.9 |  | $7,489.2 |  | $14,583.7 |  | $14,560.9
United Kingdom | 1,832.5 |  | 1,749.4 |  | 3,819.7 |  | 3,599.5
Canada | 382.9 |  | 344.4 |  | 659.3 |  | 600.8
Total revenue from external customers | $9,791.3 |  | $9,583.0 |  | $19,062.7 |  | $18,761.2

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