XML 37 R27.htm IDEA: XBRL DOCUMENT v3.22.1
DISCONTINUED OPERATIONS AND OTHER DIVESTITURES (Tables)
 3 Months Ended
Mar. 31, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations The following table summarizes the estimated fair value of proceeds expected and net carrying value of the assets disposed as of March 31, 2022 (in millions):
Estimated fair value of proceeds from disposition$106.0 
Estimated net assets disposed51.2 
Estimated gain before currency translation adjustments54.8 
Estimated amount of currency translation loss recorded in AOCI(118.3)
Estimated incremental costs to sell14.0 
Net loss on disposal of the Brazil Disposal Group$(77.5)
Results of the Brazil Discontinued Operations were as follows (in millions):
Three Months Ended March 31,
20222021
REVENUES:
New vehicle retail sales$48.6 $34.1 
Used vehicle retail sales22.2 10.7 
Used vehicle wholesale sales5.3 2.0 
Parts and service sales10.7 7.9 
Finance, insurance and other, net1.5 1.4 
Total revenues88.3 56.1 
COST OF SALES:
New vehicle retail sales43.8 30.8 
Used vehicle retail sales20.6 9.6 
Used vehicle wholesale sales5.3 1.8 
Parts and service sales6.3 4.5 
Total cost of sales76.1 46.7 
GROSS PROFIT12.3 9.4 
Selling, general and administrative expenses8.7 7.1 
Depreciation and amortization expense0.4 0.3 
INCOME FROM DISCONTINUED OPERATIONS3.1 2.1 
Floorplan interest expense0.7 — 
Other interest (income) expense, net(0.1)0.6 
INCOME BEFORE INCOME TAXES — DISCONTINUED OPERATIONS2.5 1.4 
Provision for income taxes0.7 0.4 
NET INCOME — DISCONTINUED OPERATIONS$1.8 $1.0 
The following table presents cash flows from operating and investing activities for the Brazil Discontinued Operations (in millions):
Three Months Ended March 31,
20222021
Net cash provided by (used in) operating activities — discontinued operations$11.8 $(6.6)
Net cash used in investing activities — discontinued operations$(0.3)$(0.5)
Assets and liabilities of the Brazil Discontinued Operations were as follows (in millions):
March 31, 2022December 31, 2021
Cash and cash equivalents$15.2 $3.7 
Contracts-in-transit and vehicle receivables, net5.7 2.3 
Accounts and notes receivable, net11.6 11.8 
Inventories37.0 37.2 
Prepaid expenses2.3 1.9 
Assets of Brazil Discontinued Operations — current71.8 56.9 
Property and equipment, net26.0 22.3 
Operating lease assets2.5 2.4 
Other long-term assets9.6 7.8 
Assets of Brazil Discontinued Operations — non-current (1)
38.1 32.5 
Total assets, before valuation allowance109.9 89.5 
Valuation allowance(63.5)(76.4)
Total assets, net of valuation allowance (1)
$46.3 $13.0 
Floorplan notes payable — credit facility and other$1.7 $3.3 
Floorplan notes payable — manufacturer affiliates23.0 20.1 
Current operating lease liabilities2.6 2.5 
Accounts payable22.6 13.7 
Accrued expenses and other current liabilities22.5 8.7 
Liabilities of Brazil Discontinued Operations — current$72.5 $48.3 
(1) The assets of the Brazil Discontinued Operations are classified in current assets in the Condensed Consolidated Balance Sheet as of March 31, 2022 and December 31, 2021, as the Brazil Disposal is expected to close before the end of the second quarter of 2022.
Assets and Liabilities Held for Sale
Assets and liabilities classified as held for sale consisted of the following (in millions):
March 31, 2022December 31, 2021
Current assets classified as held for sale
Brazil Discontinued Operations$46.3 $13.0 
Prime Acquisition (1)
26.6 52.3 
Other (2)
8.8 34.9 
Total current assets classified as held for sale$81.8 $100.3 
Current liabilities classified as held for sale
Brazil Discontinued Operations$72.5 $48.3 
Prime Acquisition (1)
1.5 1.6 
Other0.7 — 
Total current liabilities classified as held for sale$74.6 $49.9 
(1) For additional details on current assets and current liabilities classified as held for sale in connection with the Prime Acquisition as of the acquisition date, refer to Note 3. Acquisitions.
(2) Includes $7.5 million and $9.9 million of goodwill reclassified to assets held for sale as of March 31, 2022 and December 31, 2021.