XML 32 R20.htm IDEA: XBRL DOCUMENT
v3.25.3

SEGMENT INFORMATION | 9 Months Ended
--- | ---
Sep. 30, 2025
Segment Reporting [Abstract] |
SEGMENT INFORMATION | SEGMENT INFORMATION As of September 30, 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 and nine months ended September 30, 2025 and 2024, are as follows:
| Three Months Ended September 30, 2025 |  | Three Months Ended September 30, 2024
| Dealerships |  | TCA |  | Total |  | Dealerships |  | TCA |  | Total
| (In millions)
Revenue from external customers | $ | 4,719.8 |  |  | $ | 81.1 |  |  | $ | 4,800.9 |  |  | $ | 4,159.7 |  |  | $ | 77.0 |  |  | $ | 4,236.7 |
Intersegment revenue | 66.4 |  |  | — |  |  | 66.4 |  |  | 57.6 |  |  | — |  |  | 57.6 |
| $ | 4,786.2 |  |  | $ | 81.1 |  |  | $ | 4,867.2 |  |  | $ | 4,217.3 |  |  | $ | 77.0 |  |  | $ | 4,294.3 |
Reconciliation of revenue |  |  |  |  |  |  |  |  |  |  |
Elimination of inter-segment revenue |  |  |  |  | (66.4) |  |  |  |  |  |  | (57.6) |
Total consolidated revenue |  |  |  |  | $ | 4,800.9 |  |  |  |  |  |  | $ | 4,236.7 |
Less: |  |  |  |  |  |  |  |  |  |  |
Cost of sales |  |  |  |  |  |  |  |  |  |  |
New vehicle | 2,367.9 |  |  | — |  |  |  |  | 2,013.1 |  |  | — |  |  |
Used vehicle | 1,347.0 |  |  | — |  |  |  |  | 1,235.3 |  |  | — |  |  |
Parts and service | 279.2 |  |  | — |  |  |  |  | 266.2 |  |  | — |  |  |
Finance and insurance | — |  |  | 59.6 |  |  |  |  | — |  |  | 57.5 |  |  |
Selling, general and administrative expenses |  |  |  |  |  |  |  |  |  |  |
Personnel costs | 339.0 |  |  | — |  |  |  |  | 307.7 |  |  | — |  |  |
Rent and related expenses | 39.5 |  |  | — |  |  |  |  | 37.2 |  |  | — |  |  |
Advertising | 18.7 |  |  | — |  |  |  |  | 16.0 |  |  | — |  |  |
Other selling, general and administrative expense | 133.1 |  |  | — |  |  |  |  | 108.4 |  |  | — |  |  |
Other segment items | — |  |  | 1.9 |  |  |  |  | — |  |  | 1.6 |  |  |
Depreciation and amortization | 21.2 |  |  | — |  |  |  |  | 18.8 |  |  | 0.1 |  |  |
Floor plan interest expense | 26.7 |  |  | — |  |  |  |  | 22.3 |  |  | — |  |  |
Segment operating income | $ | 213.9 |  |  | $ | 19.6 |  |  | $ | 233.5 |  |  | $ | 192.4 |  |  | $ | 17.8 |  |  | $ | 210.1 |
Reconciliation of segment operating income |  |  |  |  |  |  |  |  |  |  |
Intersegment eliminations |  |  |  |  |  |  |  |  |  |  |
Total intersegment revenue eliminations |  |  |  |  | (66.4) |  |  |  |  |  |  | (57.6) |
Total intersegment cost of sales eliminations |  |  |  |  | 55.3 |  |  |  |  |  |  | 53.4 |
Deferral of SG&A expense (related to capitalized contract costs offset by amortization) |  |  |  |  | 5.1 |  |  |  |  |  |  | 4.3 |
Total intersegment eliminations |  |  |  |  | (5.9) |  |  |  |  |  |  | 0.2 |
Asset impairments |  |  |  |  | (11.7) |  |  |  |  |  |  | — |
Other interest expense, net |  |  |  |  | (51.3) |  |  |  |  |  |  | (45.7) |
Gain on dealership divestitures, net |  |  |  |  | 35.7 |  |  |  |  |  |  | 5.0 |
Income before income taxes |  |  |  |  | $ | 200.2 |  |  |  |  |  |  | $ | 169.7 |
| Nine Months Ended September 30, 2025 |  | Nine Months Ended September 30, 2024
| Dealerships |  | TCA |  | Total |  | Dealerships |  | TCA |  | Total
| (In millions)
Revenue from external customers | $ | 13,077.8 |  |  | $ | 244.7 |  |  | $ | 13,322.5 |  |  | $ | 12,457.6 |  |  | $ | 226.5 |  |  | $ | 12,684.1 |
Intersegment revenue | 202.9 |  |  | — |  |  | 202.9 |  |  | 167.0 |  |  | — |  |  | 167.0 |
| $ | 13,280.7 |  |  | $ | 244.7 |  |  | $ | 13,525.4 |  |  | $ | 12,624.6 |  |  | $ | 226.5 |  |  | $ | 12,851.1 |
Reconciliation of revenue |  |  |  |  |  |  |  |  |  |  |
Elimination of inter-segment revenue |  |  |  |  | (202.9) |  |  |  |  |  |  | (167.0) |
Total consolidated revenue |  |  |  |  | $ | 13,322.5 |  |  |  |  |  |  | $ | 12,684.1 |
Less: |  |  |  |  |  |  |  |  |  |  |
Cost of sales |  |  |  |  |  |  |  |  |  |  |
New vehicle | 6,506.8 |  |  | — |  |  |  |  | 5,924.4 |  |  | — |  |  |
Used vehicle | 3,735.0 |  |  | — |  |  |  |  | 3,767.3 |  |  | — |  |  |
Parts and service | 790.4 |  |  | — |  |  |  |  | 782.9 |  |  | — |  |  |
Finance and insurance | — |  |  | 179.8 |  |  |  |  | — |  |  | 165.8 |  |  |
Selling, general and administrative expenses |  |  |  |  |  |  |  |  |  |  |
Personnel costs | 966.8 |  |  | — |  |  |  |  | 939.2 |  |  | — |  |  |
Rent and related expenses | 89.3 |  |  | — |  |  |  |  | 103.1 |  |  | — |  |  |
Advertising | 51.0 |  |  | — |  |  |  |  | 47.8 |  |  | — |  |  |
Other selling, general and administrative expense | 362.1 |  |  | — |  |  |  |  | 332.1 |  |  | — |  |  |
Other segment items | — |  |  | 5.5 |  |  |  |  | — |  |  | 5.1 |  |  |
Depreciation and amortization | 59.3 |  |  | 0.2 |  |  |  |  | 55.5 |  |  | 0.3 |  |  |
Floor plan interest expense | 65.6 |  |  | — |  |  |  |  | 66.1 |  |  | — |  |  |
Segment operating income | $ | 654.4 |  |  | $ | 59.2 |  |  | $ | 713.6 |  |  | $ | 606.2 |  |  | $ | 55.3 |  |  | $ | 661.5 |
Reconciliation of segment operating income |  |  |  |  |  |  |  |  |  |  |
Intersegment eliminations |  |  |  |  |  |  |  |  |  |  |
Total intersegment revenue eliminations |  |  |  |  | (202.9) |  |  |  |  |  |  | (167.0) |
Total intersegment cost of sales eliminations |  |  |  |  | 168.2 |  |  |  |  |  |  | 154.9 |
Deferral of SG&A expense (related to capitalized contract costs offset by amortization) |  |  |  |  | 15.9 |  |  |  |  |  |  | 15.7 |
Total intersegment eliminations |  |  |  |  | (18.9) |  |  |  |  |  |  | 3.7 |
Asset impairments |  |  |  |  | (26.0) |  |  |  |  |  |  | (135.4) |
Other interest expense, net |  |  |  |  | (135.0) |  |  |  |  |  |  | (134.9) |
Gain on dealership divestitures, net |  |  |  |  | 45.8 |  |  |  |  |  |  | 8.6 |
Income before income taxes |  |  |  |  | $ | 579.5 |  |  |  |  |  |  | $ | 403.6 |
Total assets by segment as of September 30, 2025 and December 31, 2024 are as follows:
| As of September 30, 2025
| Dealerships |  | TCA |  | Total Reportable Segments |  | Eliminations |  | Total Company
| (In millions)
Total assets | $ | 10,575.0 |  |  | $ | 1,020.2 |  |  | $ | 11,595.2 |  |  | $ | 178.3 |  |  | $ | 11,773.5 |
| 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 |

X
- References No definition available. + Details
Name: | us-gaap_SegmentReportingAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 21 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-21 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 31 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-31 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 15 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-15 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 42 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-42 Reference 7: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 48 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-48 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Topic 270 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Subparagraph (i) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482964/270-10-50-1 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (ee) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 11: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 32 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-32 Reference 12: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 13: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 14: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 15: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 16: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 54 -Subparagraph (e) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-54 Reference 17: http://www.xbrl.org/2003/role/exampleRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 47 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482785/280-10-55-47 Reference 18: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 22 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-22 Reference 19: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 34 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-34 Reference 20: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26C -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26C Reference 21: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26B -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26B Reference 22: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 40 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-40 Reference 23: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/280/tableOfContent Reference 24: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 26 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-26 Reference 25: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 41 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482810/280-10-50-41 + Details
Name: | us-gaap_SegmentReportingDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration