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.

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