XML 46 R30.htm IDEA: XBRL DOCUMENT
v3.10.0.1

Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2018
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION As of December 31, 2018, the Company had three reportable segments: (1) U.S., (2) U.K., and (3) Brazil. Each of the reportable segments is comprised of retail automotive franchises that sell new and used cars and light trucks; arrange related vehicle financing; sell service insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts. The vast majority of the Company’s corporate activities are associated with the operations of the U.S. operating segment and therefore the corporate financial results are included within the U.S. reportable segment. Reportable segment revenues, gross profit, SG&A, depreciation and amortization expenses, asset impairments, floorplan interest expense, net, other interest expense, net, benefit (provision) for income taxes, net income (loss) and capital expenditures are as follows (in thousands):
| Year Ended December 31, 2018 |
| U.S. |  | U.K. |  | Brazil |  | Total |
New vehicle retail sales | $ | 4,682,820 |  |  | $ | 1,217,135 |  |  | $ | 281,416 |  |  | $ | 6,181,371 |  |
Used vehicle retail sales | 2,306,999 |  |  | 771,719 |  |  | 87,352 |  |  | 3,166,070 |  |
Used vehicle wholesale sales | 178,910 |  |  | 173,783 |  |  | 16,882 |  |  | 369,575 |  |
Parts and service | 1,153,257 |  |  | 217,594 |  |  | 46,038 |  |  | 1,416,889 |  |
Finance, insurance and other, net | 401,271 |  |  | 57,154 |  |  | 9,028 |  |  | 467,453 |  |
Total revenues | 8,723,257 |  |  | 2,437,385 |  |  | 440,716 |  |  | 11,601,358 |  |
Gross profit | 1,391,306 |  |  | 279,902 |  |  | 53,885 |  |  | 1,725,093 |  |
Selling, general and administrative expenses | 982,064 |  | (1) | 240,403 |  |  | 50,590 |  | (2) | 1,273,057 |  |
Depreciation and amortization expense | 52,881 |  |  | 12,586 |  |  | 1,603 |  |  | 67,070 |  |
Asset impairments | 43,398 |  |  | 485 |  |  | — |  |  | 43,883 |  |
Floorplan interest expense | (52,773 | ) |  | (6,322 | ) |  | (787 | ) |  | (59,882 | ) |
Other interest expense, net | (68,085 | ) |  | (6,797 | ) |  | (916 | ) |  | (75,798 | ) |
Income (loss) before income taxes | 192,105 |  |  | 13,309 |  |  | (11 | ) |  | 205,403 |  |
Benefit (provision) for income taxes | (43,734 | ) |  | (2,549 | ) |  | (1,348 | ) |  | (47,631 | ) |
Net income (loss) | $ | 148,371 |  |  | $ | 10,760 |  |  | $ | (1,359 | ) |  | $ | 157,772 |  |
Capital expenditures | $ | 90,530 |  |  | $ | 16,947 |  |  | $ | 2,667 |  |  | $ | 110,144 |  |
(1) Includes the following, pre-tax: net gain on real estate and dealership transactions of $25.2 million, loss due to catastrophic events of $6.4 million and legal items of $1.3 million. (2) Includes pre-tax loss related to legal items of $3.7 million.
| Year Ended December 31, 2017 (4) |
| U.S. |  | U.K. |  | Brazil |  | Total |
New vehicle retail sales | $ | 4,768,864 |  |  | $ | 1,092,612 |  |  | $ | 296,055 |  |  | $ | 6,157,531 |  |
Used vehicle retail sales | 2,160,699 |  |  | 546,266 |  |  | 92,021 |  |  | 2,798,986 |  |
Used vehicle wholesale sales | 250,668 |  |  | 136,847 |  |  | 12,655 |  |  | 400,170 |  |
Parts and service | 1,124,380 |  |  | 165,755 |  |  | 47,897 |  |  | 1,338,032 |  |
Finance, insurance and other, net | 375,954 |  |  | 44,523 |  |  | 8,525 |  |  | 429,002 |  |
Total revenues | 8,680,565 |  | (1) | 1,986,003 |  |  | 457,153 |  |  | 11,123,721 |  |
Gross profit | 1,365,314 |  |  | 225,253 |  |  | 54,942 |  |  | 1,645,509 |  |
Selling, general and administrative expenses | 983,974 |  | (2) | 191,570 |  |  | 50,651 |  |  | 1,226,195 |  |
Depreciation and amortization expense | 48,285 |  |  | 8,198 |  |  | 1,453 |  |  | 57,936 |  |
Asset impairments | 12,762 |  |  | — |  |  | 6,744 |  |  | 19,506 |  |
Floorplan interest expense | (47,221 | ) |  | (4,727 | ) |  | (424 | ) |  | (52,372 | ) |
Other interest expense, net | (66,493 | ) |  | (3,664 | ) |  | (340 | ) |  | (70,497 | ) |
Income (loss) before income taxes | 206,579 |  |  | 17,094 |  |  | (4,670 | ) |  | 219,003 |  |
Benefit (provision) for income taxes | (5,679 | ) | (3) | (2,142 | ) |  | 2,260 |  |  | (5,561 | ) |
Net income (loss) | $ | 200,900 |  |  | $ | 14,952 |  |  | $ | (2,410 | ) |  | $ | 213,442 |  |
Capital expenditures | $ | 77,477 |  |  | $ | 19,944 |  |  | $ | 880 |  |  | $ | 98,301 |  |
(1) Includes the impact of chargeback reserves for finance and insurance revenues associated with catastrophic events of $6.6 million. (2) Includes the following, pre-tax: gain on OEM settlement of $1.8 million and loss due to catastrophic events of $8.8 million. (3) Includes a tax benefit of $73.0 million associated with a reduction in the corporate income tax rate enacted in the Tax Act (4) Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with historical accounting policies under Topic 605, Revenue Recognition.
| Year Ended December 31, 2016 (4) |
| U.S. |  | U.K. |  | Brazil |  | Total |
New vehicle retail sales | $ | 4,766,047 |  |  | $ | 987,538 |  |  | $ | 292,490 |  |  | $ | 6,046,075 |  |
Used vehicle retail sales | 2,242,508 |  |  | 434,203 |  |  | 81,002 |  |  | 2,757,713 |  |
Used vehicle wholesale sales | 276,710 |  |  | 121,747 |  |  | 3,406 |  |  | 401,863 |  |
Parts and service | 1,071,651 |  |  | 143,362 |  |  | 46,294 |  |  | 1,261,307 |  |
Finance, insurance and other, net | 377,756 |  |  | 36,305 |  |  | 6,593 |  |  | 420,654 |  |
Total revenues | 8,734,672 |  |  | 1,723,155 |  |  | 429,785 |  |  | 10,887,612 |  |
Gross profit | 1,355,349 |  |  | 192,982 |  |  | 46,738 |  |  | 1,595,069 |  |
Selling, general and administrative expenses | 965,139 |  | (1) | 158,636 |  |  | 46,988 |  | (2) | 1,170,763 |  |
Depreciation and amortization expense | 43,472 |  |  | 6,594 |  |  | 1,168 |  |  | 51,234 |  |
Asset impairments | 21,794 |  |  | 201 |  |  | 10,843 |  |  | 32,838 |  |
Floorplan interest expense | (40,444 | ) |  | (4,222 | ) |  | (261 | ) |  | (44,927 | ) |
Other interest expense, net | (62,320 | ) |  | (5,197 | ) |  | (419 | ) |  | (67,936 | ) |
Income (loss) before income taxes | 222,180 |  |  | 18,132 |  |  | (12,941 | ) |  | 227,371 |  |
Benefit (provision) for income taxes | (82,541 | ) |  | (3,697 | ) |  | 5,932 |  |  | (80,306 | ) |
Net income (loss) | $ | 139,639 |  |  | $ | 14,435 |  |  | $ | (7,009 | ) | (3) | $ | 147,065 |  |
Capital expenditures | $ | 86,692 |  |  | $ | 12,602 |  |  | $ | 1,312 |  |  | $ | 100,606 |  |
(1) Includes the following pre-tax: gain on OEM settlement of $11.7 million, loss due to catastrophic events of $5.9 million, a net gain on real estate and dealership transactions of $2.7 million, and severance costs of $1.8 million.(2) Includes pre-tax loss on real estate and dealership transactions of $0.8 million. (3) Includes a foreign deferred income tax benefit of $1.7 million. (4) Results for reporting periods beginning after January 1, 2018 are presented under Topic 606, while prior period amounts are not adjusted and continue to be reported in accordance with historical accounting policies under Topic 605, Revenue Recognition. Goodwill and intangible franchise rights and total assets by reportable segment are as follows (in thousands):
|  | As of December 31, 2018
|  | U.S. |  | U.K. |  | Brazil |  | Total
Goodwill and intangible franchise rights |  | $ | 1,086,022 |  |  | $ | 122,679 |  |  | $ | 14,854 |  |  | $ | 1,223,555 |
Total assets |  | $ | 4,113,049 |  |  | $ | 756,350 |  |  | $ | 131,676 |  |  | $ | 5,001,075 |
|  | As of December 31, 2017
|  | U.S. |  | U.K. |  | Brazil |  | Total
Goodwill and intangible franchise rights |  | $ | 1,091,248 |  |  | $ | 94,517 |  |  | $ | 12,901 |  |  | $ | 1,198,666 |
Total assets |  | $ | 4,087,039 |  |  | $ | 654,154 |  |  | $ | 129,872 |  |  | $ | 4,871,065 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration