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Segment Information | 12 Months Ended
--- | ---
Dec. 31, 2019
Segment Reporting [Abstract] |
Segment Information | SEGMENT INFORMATION As of December 31, 2019, the Company had three reportable segments: (1) U.S., (2) U.K., and (3) Brazil. The U.S. and Brazil segments are led by the President, U.S. and Brazilian Operations, and the U.K segment is led by a Managing Director, each reporting directly to the Company's Chief Executive Officer, who is the Chief Operating Decision Maker. The President, U.S. and Brazilian Operations, and the U.K Managing Director are responsible for the overall performance of their respective regions, as well as for overseeing field level management. Each of the 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. segment and therefore the corporate financial results are included within the U.S. segment. Reportable segment revenues, depreciation and amortization expenses, floorplan interest expense, net, other interest expense, net, income (loss) before income taxes, capital expenditures and assets are as follows (in millions):
| Year Ended December 31, 2019
| U.S. |  | U.K. |  | Brazil |  | Total
Total revenues | $ | 9,184.2 |  |  | $ | 2,413.7 |  |  | $ | 445.9 |  |  | $ | 12,043.8 |
Gross profit | $ | 1,494.8 |  |  | $ | 267.7 |  |  | $ | 53.5 |  |  | $ | 1,816.0 |
Selling, general and administrative expenses (1) | $ | 1,075.6 |  |  | $ | 236.9 |  |  | $ | 46.0 |  |  | $ | 1,358.4 |
Depreciation and amortization expense | $ | 55.4 |  |  | $ | 14.6 |  |  | $ | 1.6 |  |  | $ | 71.6 |
Floorplan interest expense | $ | 53.7 |  |  | $ | 7.2 |  |  | $ | 0.7 |  |  | $ | 61.6 |
Other interest expense, net | $ | 67.5 |  |  | $ | 7.3 |  |  | $ | 0.1 |  |  | $ | 74.9 |
Income (loss) before income taxes (2) | $ | 227.9 |  |  | $ | (5.3 | ) |  | $ | 4.6 |  |  | $ | 227.3 |
Capital expenditures: |  |  |  |  |  |  |
Real estate related capital expenditures | $ | 63.8 |  |  | $ | 25.7 |  |  | $ | 3.1 |  |  | $ | 92.5 |
Non-real estate related capital expenditures (3) | 70.7 |  |  | 25.9 |  |  | 2.6 |  |  | 99.3 |
Total capital expenditures | $ | 134.5 |  |  | $ | 51.6 |  |  | $ | 5.7 |  |  | $ | 191.8 |
| Year Ended December 31, 2018
| U.S. |  | U.K. |  | Brazil |  | Total
Total revenues | $ | 8,723.3 |  |  | $ | 2,437.4 |  |  | $ | 440.7 |  |  | $ | 11,601.4 |
Gross profit | $ | 1,391.3 |  |  | $ | 279.9 |  |  | $ | 53.9 |  |  | $ | 1,725.1 |
Selling, general and administrative expenses (4) | $ | 982.1 |  |  | $ | 240.4 |  |  | $ | 50.6 |  |  | $ | 1,273.1 |
Depreciation and amortization expense | $ | 52.9 |  |  | $ | 12.6 |  |  | $ | 1.6 |  |  | $ | 67.1 |
Floorplan interest expense | $ | 52.8 |  |  | $ | 6.3 |  |  | $ | 0.8 |  |  | $ | 59.9 |
Other interest expense, net | $ | 68.1 |  |  | $ | 6.8 |  |  | $ | 0.9 |  |  | $ | 75.8 |
Income (loss) before income taxes (5) | $ | 192.1 |  |  | $ | 13.3 |  |  | $ | — |  |  | $ | 205.4 |
Capital expenditures: |  |  |  |  |  |  |
Real estate related capital expenditures | $ | 20.5 |  |  | $ | 5.0 |  |  | $ | 5.8 |  |  | $ | 31.4 |
Non-real estate related capital expenditures (3) | 80.2 |  |  | 27.5 |  |  | 2.0 |  |  | 109.6 |
Total capital expenditures | $ | 100.7 |  |  | $ | 32.5 |  |  | $ | 7.8 |  |  | $ | 141.0 |
| Year Ended December 31, 2017
| U.S. |  | U.K. |  | Brazil |  | Total
Total revenues | $ | 8,680.6 |  |  | $ | 1,986.0 |  |  | $ | 457.2 |  |  | $ | 11,123.7 |
Gross profit | $ | 1,365.3 |  |  | $ | 225.3 |  |  | $ | 54.9 |  |  | $ | 1,645.5 |
Selling, general and administrative expenses | $ | 984.0 |  |  | $ | 191.6 |  |  | $ | 50.7 |  |  | $ | 1,226.2 |
Depreciation and amortization expense | $ | 48.3 |  |  | $ | 8.2 |  |  | $ | 1.5 |  |  | $ | 57.9 |
Floorplan interest expense | $ | 47.2 |  |  | $ | 4.7 |  |  | $ | 0.4 |  |  | $ | 52.4 |
Other interest expense, net | $ | 66.5 |  |  | $ | 3.7 |  |  | $ | 0.3 |  |  | $ | 70.5 |
Income (loss) before income taxes (6) | $ | 206.6 |  |  | $ | 17.1 |  |  | $ | (4.7 | ) |  | $ | 219.0 |
Capital expenditures: |  |  |  |  |  |  |
Real estate related capital expenditures | $ | 101.8 |  |  | $ | 1.7 |  |  | $ | 6.9 |  |  | $ | 110.4 |
Non-real estate related capital expenditures (7) | 84.3 |  |  | 20.9 |  |  | 0.2 |  |  | 105.4 |
Total capital expenditures | $ | 186.1 |  |  | $ | 22.6 |  |  | $ | 7.1 |  |  | $ | 215.8 |
(1) SG&A expenses for the year ended December 31, 2019 includes $17.8 million of expense in the U.S. segment related to flood damage from Tropical Storm Imelda and hail storm damages primarily in Texas. (2) Income (loss) before taxes for the year ended December 31, 2019 includes the SG&A expenses described in note 1 above and additionally includes asset impairment charges of $14.7 million in the U.S. segment, $7.0 million in the U.K. segment and $0.5 million in the Brazil segment. (3) Non-real estate related capital expenditures exclude the net decrease (increase) in the accrual for capital expenditures of $4.1 million, ($0.5 million) and $7.1 million for the years ended December 31, 2019, 2018 and 2017, respectively. (4) SG&A expenses for the year ended December 31, 2018 includes a $25.2 million net gain on disposition on real estate and dealership transactions and $6.4 million of expense related to catastrophic events mainly as a result of hail storms in the U.S. segment and a $3.7 million gain on legal settlements in the Brazil segment. (5) Income (loss) before taxes for the year ended December 31, 2018 includes the SG&A expenses described in note 4 above and additionally includes asset impairment charges of $43.4 million in in the U.S. segment and $0.5 million in the U.K. segment. (6) SG&A expenses for the year ended December 31, 2017 includes $15.3 million of expense related to catastrophic events mainly as a result of Hurricane Harvey in the U.S. segment. (7) Income (loss) before taxes for the year ended December 31, 2017 the SG&A expenses described in note 6 above and additionally includes asset impairment charges of $12.8 million of in the U.S. segment and $6.7 million in the Brazil segment.
|  | December 31, 2019
|  | U.S. |  | U.K. |  | Brazil |  | Total
Property and equipment, net |  | $ | 1,251.4 |  |  | $ | 271.0 |  |  | $ | 24.7 |  |  | $ | 1,547.1 |
Operating lease assets |  | $ | 114.8 |  |  | $ | 100.1 |  |  | $ | 5.2 |  |  | $ | 220.1 |
Total assets |  | $ | 4,256.1 |  |  | $ | 1,225.6 |  |  | $ | 88.6 |  |  | $ | 5,570.2 |
|  | December 31, 2018
|  | U.S. |  | U.K. |  | Brazil |  | Total
Property and equipment, net |  | $ | 1,124.6 |  |  | $ | 199.0 |  |  | $ | 24.3 |  |  | $ | 1,347.8 |
Total assets |  | $ | 4,113.0 |  |  | $ | 756.4 |  |  | $ | 131.7 |  |  | $ | 5,001.1 |
See Note 11 “Intangible Franchise Rights and Goodwill” for details of the Company’s intangible franchise rights and goodwill by segment.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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