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SEGMENT INFORMATION | 3 Months Ended
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Mar. 31, 2025
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION As of March 31, 2025, the Company had two reportable segments: (1) Dealerships and (2) TCA. Our dealership operations are organized by management into geographic region-based groups within the Dealerships segment. The operations of our F&I product provider are reflected within our TCA segment. 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 gross profit earned by our parts and service departments for work performed for TCA customers is reflected as a reduction of parts and service cost of sales in the accompanying condensed consolidated statements of income. The costs incurred by TCA for work performed by our parts and service departments are included in finance and insurance cost of sales in the accompanying condensed consolidated statements of income. The significant expense categories and amounts are consistent with the segment-level information that is regularly provided to the chief operating decision maker. Certain intersegment expenses are included within the amounts shown. Rent and related expenses include rent expense, utilities, property and casualty insurance, real estate tax and personal property tax. Other segment items for the TCA segment relate to selling, general and administrative expenses. Reportable segment financial information for the three months ended March 31, 2025 and 2024, are as follows:
| Three Months Ended March 31, 2025 |  | Three Months Ended March 31, 2024
| Dealerships |  | TCA |  | Total |  | Dealerships |  | TCA |  | Total
| (In millions)
Revenue from external customers | $ | 4,064.4 |  |  | $ | 84.1 |  |  | $ | 4,148.5 |  |  | $ | 4,127.1 |  |  | $ | 74.1 |  |  | $ | 4,201.2 |
Intersegment revenue | 62.4 |  |  | — |  |  | 62.4 |  |  | 54.8 |  |  | — |  |  | 54.8 |
| $ | 4,126.8 |  |  | $ | 84.1 |  |  | $ | 4,210.9 |  |  | $ | 4,182.0 |  |  | $ | 74.1 |  |  | $ | 4,256.1 |
Reconciliation of revenue |  |  |  |  |  |  |  |  |  |  |
Elimination of inter-segment revenue |  |  |  |  | (62.4) |  |  |  |  |  |  | (54.8) |
Total consolidated revenue |  |  |  |  | $ | 4,148.5 |  |  |  |  |  |  | $ | 4,201.2 |
Less: |  |  |  |  |  |  |  |  |  |  |
Cost of sales |  |  |  |  |  |  |  |  |  |  |
New vehicle | 1,995.0 |  |  | — |  |  |  |  | 1,901.4 |  |  | — |  |  |
Used vehicle | 1,171.3 |  |  | — |  |  |  |  | 1,285.0 |  |  | — |  |  |
Parts and service | 254.2 |  |  | — |  |  |  |  | 260.8 |  |  | — |  |  |
Finance and insurance | — |  |  | 61.0 |  |  |  |  | — |  |  | 53.0 |  |  |
Selling, general and administrative expenses |  |  |  |  |  |  |  |  |  |  |
Personnel costs | 309.1 |  |  | — |  |  |  |  | 316.5 |  |  | — |  |  |
Rent and related expenses | 21.2 |  |  | — |  |  |  |  | 29.7 |  |  | — |  |  |
Advertising | 15.2 |  |  | — |  |  |  |  | 16.4 |  |  | — |  |  |
Other selling, general and administrative expense | 112.5 |  |  | — |  |  |  |  | 110.3 |  |  | — |  |  |
Other segment items | — |  |  | 1.9 |  |  |  |  | — |  |  | 1.8 |  |  |
Depreciation and amortization | 19.2 |  |  | 0.1 |  |  |  |  | 18.6 |  |  | 0.1 |  |  |
Floor plan interest expense | 20.7 |  |  | — |  |  |  |  | 22.8 |  |  | — |  |  |
Segment operating income | $ | 208.5 |  |  | $ | 21.1 |  |  | $ | 229.6 |  |  | $ | 220.5 |  |  | $ | 19.2 |  |  | $ | 239.7 |
Reconciliation of segment operating income |  |  |  |  |  |  |  |  |  |  |
Intersegment eliminations |  |  |  |  |  |  |  |  |  |  |
Total intersegment revenue eliminations |  |  |  |  | (62.4) |  |  |  |  |  |  | (54.8) |
Total intersegment cost of sales eliminations |  |  |  |  | 57.2 |  |  |  |  |  |  | 49.0 |
Deferral of SG&A expense (related to capitalized contract costs offset by amortization) |  |  |  |  | 3.5 |  |  |  |  |  |  | 6.1 |
Total intersegment eliminations |  |  |  |  | (1.6) |  |  |  |  |  |  | 0.2 |
Asset impairments |  |  |  |  | (14.3) |  |  |  |  |  |  | — |
Other interest expense, net |  |  |  |  | (42.3) |  |  |  |  |  |  | (44.1) |
Gain on dealership divestitures, net |  |  |  |  | 4.1 |  |  |  |  |  |  | — |
Income before income taxes |  |  |  |  | $ | 175.4 |  |  |  |  |  |  | $ | 195.8 |
Total assets by segment as of March 31, 2025 and December 31, 2024 are as follows:
| As of March 31, 2025
| Dealerships |  | TCA |  | Total Reportable Segments |  | Eliminations |  | Total Company
| (In millions)
Total assets | $ | 9,082.9 |  |  | $ | 957.2 |  |  | $ | 10,040.2 |  |  | $ | 180.8 |  |  | $ | 10,221.0 |
| As of December 31, 2024
| Dealerships |  | TCA |  | Total Reportable Segments |  | Eliminations |  | Total Company
| (In millions)
Total assets | $ | 9,227.6 |  |  | $ | 1,049.4 |  |  | $ | 10,277.0 |  |  | $ | 60.1 |  |  | $ | 10,337.0 |

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- Definition The entire disclosure for reporting segments including data and tables. 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