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LEASES
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES LEASES
The Company leases real estate, office equipment and dealership operating assets under long-term lease agreements and subleases certain real estate to third parties.
The Company recognizes ROU assets and lease liabilities at commencement based on the present value of lease payments over the lease term. For such leases, the aggregate present value of the Company’s lease payments may include options to purchase the leased property or lease terms with options to renew or terminate the lease, when the option is at the Company’s sole discretion, and it is reasonably certain that the Company will exercise such an option. The Company’s leases may also include rental payments adjusted periodically for inflation. Payments based on a change in an index or rates are not considered in the determination of lease payments for purposes of measuring the related lease liability. The Company discounts lease payments using its incremental borrowing rate based on information available as of the measurement date. Subsequent to the recognition of its ROU assets and lease liabilities, the Company recognizes lease expense related to its operating lease payments on a straight-line basis over the lease term. None of the Company’s lease agreements contain material residual value guarantees or material restrictive covenants.
For the Company’s dealership operating leases, the Company has elected to separate lease and non-lease components and has allocated the consideration between the lease and non-lease components based on the estimated fair value of the leased component. For all other asset classes, the Company has elected to combine and account for both lease and non-lease components as a single component.
The Company has elected not to record leases with an initial term of 12 months or less on the balance sheet for all asset classes.     
The Company reviews ROU assets for impairment at the lowest level of identifiable cash flows whenever evidence exists that the carrying value of an asset may not be recoverable (i.e., triggering events). This review consists of comparing the carrying amount of the asset group with its expected future undiscounted cash flows. Estimates of expected future cash flows represent management’s best estimate based on currently available information and reasonable and supportable assumptions. If the asset group’s carrying amount exceeds its future undiscounted cash flows, an impairment charge is measured as the amount by which its carrying amount exceeds its fair value. The fair value of the ROU asset is calculated based on the discounted market rent over the remaining lease period. The market rent reflects current lease rates on comparable properties and requires adjustments to reflect the different characteristics between the property being measured and the comparable property, which are considered level 3 inputs within the fair value hierarchy described further in Note 7. Financial Instruments and Fair Value Measurements. During the year ended December 31, 2023, the Company recorded $1.8 million of impairments of ROU assets related to the U.S. segment. No impairments of ROU assets were recorded during the years ended December 31, 2022 and 2021. The impairment charges were recognized within Asset impairments in the Company’s Consolidated Statements of Operations. Additional information regarding the Company’s operating and finance leases is as follows (in millions, except for lease term and discount rate information):
December 31,
LeasesBalance Sheet Classification20232022
Assets:
OperatingOperating lease assets$216.5 $249.1 
FinanceProperty and equipment, net271.3 221.4 
Total$487.7 $470.5 
Liabilities:
Current:
OperatingCurrent operating lease liabilities$20.9 $21.8 
FinanceCurrent maturities of long-term debt6.5 18.8 
Noncurrent:
OperatingOperating lease liabilities, net of current portion209.4 238.4 
FinanceLong-term debt, net of current maturities266.1 201.6 
Total$503.0 $480.6 
Years Ended December 31,
Lease ExpenseIncome Statement Classification202320222021
OperatingSelling, general and administrative expenses$38.1 $42.4 $35.1 
Operating Asset impairments 1.8 — — 
VariableSelling, general and administrative expenses6.6 4.5 3.3 
Sublease income Selling, general and administrative expenses(1.3)(2.3)(1.9)
Finance:
Amortization of lease assetsDepreciation and amortization expense9.9 9.1 7.3 
Interest on lease liabilitiesOther interest expense, net12.6 8.2 7.2 
Net lease expense$67.6 $61.9 $50.9 
December 31, 2023
Maturities of Lease LiabilitiesOperating LeasesFinance Leases
2023$31.8 $20.0 
202433.1 59.6 
202530.2 48.2 
202628.5 52.3 
202726.1 67.8 
Thereafter190.3 98.9 
Total lease payments339.9 346.9 
Less: lease payments representing interest
(109.6)(74.2)
Present value of lease liabilities$230.3 $272.7 
Years Ended December 31,
Weighted-Average Lease Term and Discount Rate 202320222021
Weighted-average remaining lease terms:
Operating
13.5
13.6
12.0
Finance
7.2
17.2
17.1
Weighted-average discount rates:
Operating5.2 %5.1 %4.8 %
Finance5.3 %5.1 %4.9 %
Years Ended December 31,
Other Information202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$36.6 $42.2 $36.2 
Operating cash flows used in finance leases$12.6 $8.2 $7.2 
Financing cash flows used in finance leases$26.4 $9.1 $10.9 
ROU assets obtained in exchange for lease obligations:
Operating leases, initial recognition$1.5 $12.9 $77.8 
Operating leases, modifications and remeasurements$(0.2)$25.0 $9.4 
Finance leases, initial recognition$70.6 $39.3 $63.8 
Finance leases, modifications and remeasurements$(3.6)$23.1 $(4.5)
LEASES LEASES
The Company leases real estate, office equipment and dealership operating assets under long-term lease agreements and subleases certain real estate to third parties.
The Company recognizes ROU assets and lease liabilities at commencement based on the present value of lease payments over the lease term. For such leases, the aggregate present value of the Company’s lease payments may include options to purchase the leased property or lease terms with options to renew or terminate the lease, when the option is at the Company’s sole discretion, and it is reasonably certain that the Company will exercise such an option. The Company’s leases may also include rental payments adjusted periodically for inflation. Payments based on a change in an index or rates are not considered in the determination of lease payments for purposes of measuring the related lease liability. The Company discounts lease payments using its incremental borrowing rate based on information available as of the measurement date. Subsequent to the recognition of its ROU assets and lease liabilities, the Company recognizes lease expense related to its operating lease payments on a straight-line basis over the lease term. None of the Company’s lease agreements contain material residual value guarantees or material restrictive covenants.
For the Company’s dealership operating leases, the Company has elected to separate lease and non-lease components and has allocated the consideration between the lease and non-lease components based on the estimated fair value of the leased component. For all other asset classes, the Company has elected to combine and account for both lease and non-lease components as a single component.
The Company has elected not to record leases with an initial term of 12 months or less on the balance sheet for all asset classes.     
The Company reviews ROU assets for impairment at the lowest level of identifiable cash flows whenever evidence exists that the carrying value of an asset may not be recoverable (i.e., triggering events). This review consists of comparing the carrying amount of the asset group with its expected future undiscounted cash flows. Estimates of expected future cash flows represent management’s best estimate based on currently available information and reasonable and supportable assumptions. If the asset group’s carrying amount exceeds its future undiscounted cash flows, an impairment charge is measured as the amount by which its carrying amount exceeds its fair value. The fair value of the ROU asset is calculated based on the discounted market rent over the remaining lease period. The market rent reflects current lease rates on comparable properties and requires adjustments to reflect the different characteristics between the property being measured and the comparable property, which are considered level 3 inputs within the fair value hierarchy described further in Note 7. Financial Instruments and Fair Value Measurements. During the year ended December 31, 2023, the Company recorded $1.8 million of impairments of ROU assets related to the U.S. segment. No impairments of ROU assets were recorded during the years ended December 31, 2022 and 2021. The impairment charges were recognized within Asset impairments in the Company’s Consolidated Statements of Operations. Additional information regarding the Company’s operating and finance leases is as follows (in millions, except for lease term and discount rate information):
December 31,
LeasesBalance Sheet Classification20232022
Assets:
OperatingOperating lease assets$216.5 $249.1 
FinanceProperty and equipment, net271.3 221.4 
Total$487.7 $470.5 
Liabilities:
Current:
OperatingCurrent operating lease liabilities$20.9 $21.8 
FinanceCurrent maturities of long-term debt6.5 18.8 
Noncurrent:
OperatingOperating lease liabilities, net of current portion209.4 238.4 
FinanceLong-term debt, net of current maturities266.1 201.6 
Total$503.0 $480.6 
Years Ended December 31,
Lease ExpenseIncome Statement Classification202320222021
OperatingSelling, general and administrative expenses$38.1 $42.4 $35.1 
Operating Asset impairments 1.8 — — 
VariableSelling, general and administrative expenses6.6 4.5 3.3 
Sublease income Selling, general and administrative expenses(1.3)(2.3)(1.9)
Finance:
Amortization of lease assetsDepreciation and amortization expense9.9 9.1 7.3 
Interest on lease liabilitiesOther interest expense, net12.6 8.2 7.2 
Net lease expense$67.6 $61.9 $50.9 
December 31, 2023
Maturities of Lease LiabilitiesOperating LeasesFinance Leases
2023$31.8 $20.0 
202433.1 59.6 
202530.2 48.2 
202628.5 52.3 
202726.1 67.8 
Thereafter190.3 98.9 
Total lease payments339.9 346.9 
Less: lease payments representing interest
(109.6)(74.2)
Present value of lease liabilities$230.3 $272.7 
Years Ended December 31,
Weighted-Average Lease Term and Discount Rate 202320222021
Weighted-average remaining lease terms:
Operating
13.5
13.6
12.0
Finance
7.2
17.2
17.1
Weighted-average discount rates:
Operating5.2 %5.1 %4.8 %
Finance5.3 %5.1 %4.9 %
Years Ended December 31,
Other Information202320222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows used in operating leases$36.6 $42.2 $36.2 
Operating cash flows used in finance leases$12.6 $8.2 $7.2 
Financing cash flows used in finance leases$26.4 $9.1 $10.9 
ROU assets obtained in exchange for lease obligations:
Operating leases, initial recognition$1.5 $12.9 $77.8 
Operating leases, modifications and remeasurements$(0.2)$25.0 $9.4 
Finance leases, initial recognition$70.6 $39.3 $63.8 
Finance leases, modifications and remeasurements$(3.6)$23.1 $(4.5)