XML 32 R21.htm IDEA: XBRL DOCUMENT v3.24.3
SEGMENT INFORMATION
 9 Months Ended
Sep. 30, 2024
Segment Reporting [Abstract]  
SEGMENT INFORMATION SEGMENT INFORMATION
As of September 30, 2024, the Company had two reportable segments: (1) Dealerships and (2) TCA. Our dealership operations are organized by management into geographic market-based groups within the Dealerships segment. The operations of our F&I product provider are reflected within our TCA segment. Our Chief Operating Decision Maker is our Chief Executive Officer who manages the business, regularly reviews financial information and allocates resources at the geographic market level for our dealerships and at the TCA segment level for our F&I product provider's operations. The geographic dealership group operating segments have been aggregated into one reportable segment as their operations (i) have similar economic characteristics (our markets all have similar long-term average gross margins), (ii) offer similar products and services (all of our markets offer new and used vehicles, parts and service, and finance and insurance products), (iii) have similar customers, (iv) have similar distribution and marketing practices (all of our markets distribute products and services through dealership facilities that market to customers in similar ways), and (v) operate under similar regulatory environments.
TCA's vehicle protection products are sold through affiliated dealerships and the revenue from the related commissions is included in finance and insurance, net revenue in the Dealerships segment before consolidation. The corresponding claims expense incurred and the amortization of deferred acquisition costs is recorded as a cost of sales in the TCA segment. The Dealerships segment also provides vehicle repair and maintenance services to TCA customers in connection with claims related to TCA's vehicle protection products. The associated service revenue and costs recorded by the Dealerships segment and claims expense recorded by the TCA segment are eliminated in consolidation.
Reportable segment financial information for the three and nine months ended September 30, 2024 and 2023, are as follows:

Three Months Ended September 30, 2024
DealershipsTCAEliminationsTotal Company
(In millions)
Revenue$4,210.5 $77.0 $(50.8)$4,236.7 
Gross profit$695.9 $19.5 $2.7 $718.0 
Three Months Ended September 30, 2023
DealershipsTCAEliminationsTotal Company
(In millions)
Revenue$3,638.9 $70.4 $(43.1)$3,666.2 
Gross profit$655.5 $18.7 $(0.6)$673.5 

Nine Months Ended September 30, 2024
Dealerships TCAEliminationsTotal Company
(In millions)
Revenue$12,609.0 $226.5 $(151.4)$12,684.1 
Gross profit$2,134.5 $60.7 $3.6 $2,198.8 

Nine Months Ended September 30, 2023
Dealerships TCAEliminationsTotal Company
(In millions)
Revenue$10,914.0 $211.1 $(134.2)$10,991.0 
Gross profit$2,021.0 $59.5 $2.3 $2,082.8 


Total assets by segment as of September 30, 2024 and December 31, 2023 are as follows:

As of September 30, 2024
Dealerships TCAEliminationsTotal Company
(In millions)
Total assets$9,071.7 $1,044.2 $57.7 $10,173.6 

As of December 31, 2023
DealershipsTCAEliminationsTotal Company
(In millions)
Total assets$9,199.4 $913.9 $46.1 $10,159.4