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Segment Information | 3 Months Ended
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Mar. 31, 2020
Segment Reporting [Abstract] |
Segment Information | 10. Segment Information As of March 31, 2020, Sonic had two operating segments comprised of: (1) retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle repair and maintenance services, and arrange finance and insurance products (the “Franchised Dealerships Segment”); and (2) pre-owned vehicle specialty retail locations that provide customers an opportunity to search our nationwide inventory, purchase a pre-owned vehicle, select finance and insurance products and sell their current vehicle to us (the “EchoPark Segment”). Sonic has determined that its operating segments also represent its reportable segments. The reportable segments identified above are the business activities of Sonic for which discrete financial information is available and for which operating results are regularly reviewed by Sonic's chief operating decision maker to assess operating performance and allocate resources. Sonic’s chief operating decision maker is a group of three individuals consisting of: (1) the Company’s Chief Executive Officer; (2) the Company’s President; and (3) the Company’s Chief Financial Officer. Reportable segment financial information for the three months ended March 31, 2020 and 2019 are as follows:
| Three Months Ended March 31, |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |
Segment Revenues: | (In thousands, except unit data) |  |  |  |  |  |
Franchised Dealerships Segment revenues: |  |  |  |  |  |  |
New vehicles | $ | 959,489 |  |  | $ | 1,066,334 |  |  |  |  |
Used vehicles | 566,888 |  |  | 603,949 |  |  |  |  |
Wholesale vehicles | 42,440 |  |  | 52,533 |  |  |  |  |
Parts, service and collision repair | 324,501 |  |  |  | 336,225 |  |  |  |  |
Finance, insurance and other, net | 83,029 |  |  |  | 80,521 |  |  |  |  |
Franchised Dealerships Segment revenues | $ | 1,976,347 |  |  |  | $ | 2,139,562 |  |  |  |  |
EchoPark Segment revenues: |  |  |  |  |  |  |
Used vehicles | $ | 283,164 |  |  |  | $ | 216,417 |  |  |  |  |
Wholesale vehicles | 6,103 |  |  |  | 2,237 |  |  |  |  |
Parts, service and collision repair | 10,179 |  |  |  | 5,205 |  |  |  |  |
Finance, insurance and other, net | 32,263 |  |  |  | 25,717 |  |  |  |  |
EchoPark Segment revenues | $ | 331,709 |  |  |  | $ | 249,576 |  |  |  |  |
Total consolidated revenues | $ | 2,308,056 |  |  |  | $ | 2,389,138 |  |  |  |  |
| Three Months Ended March 31, |  |  |  |  |  |
| 2020 |  | 2019 |  |  |  |
Segment Income (Loss) (1): | (In thousands) |  |  |  |  |  |
Franchised Dealerships Segment (2) | $ | 22,656 |  |  |  | $ | 61,182 |  |  |  |  |
EchoPark Segment | 2,096 |  |  |  | 2,106 |  |  |  |  |
Total segment income (loss) | $ | 24,752 |  |  |  | $ | 63,288 |  |  |  |  |
Impairment charges (3) | (268,000) |  |  |  | (1,952) |  |  |  |  |
Income (loss) from continuing operations before taxes | $ | (243,248) |  |  | $ | 61,336 |  |  |  |  |
Retail New and Used Vehicle Unit Sales Volume: |  |  |  |  |  |  |
Franchised Dealerships Segment | 47,762 |  |  |  | 52,609 |  |  |  |  |
EchoPark Segment | 13,986 |  |  |  | 11,051 |  |  |  |  |
Total retail new and used vehicle unit sales volume | 61,748 |  |  |  | 63,660 |  |  |  |  |
(1)Segment income (loss) for each segment is defined as income (loss) from continuing operations before taxes and impairment charges. (2)For the three months ended March 31, 2019, the above amount includes a pre-tax net gain on the disposal of franchised dealerships of approximately $46.7 million, offset partially by approximately $6.3 million of pre-tax executive transition costs. (3)For the three months ended March 31, 2020, the above amount includes a pre-tax impairment charge of approximately $268.0 million related to adjustments in fair value of goodwill for the Franchised Dealerships Segment as a result of the economic disruptions due to the worldwide spread of COVID-19 which has adversely affected our business. For the three months ended March 31, 2019, the above amount includes approximately $1.9 million of pre-tax fair value adjustments to real estate at former EchoPark locations classified as held for sale.
| Three Months Ended March 31, |  |
| 2020 |  | 2019
| (In thousands) |  |
Impairment Charges: |  |  |
Franchised Dealerships Segment | $ | 268,000 |  |  |  | $ | 26 |
EchoPark Segment | — |  |  |  | 1,926 |
Total impairment charges | $ | 268,000 |  |  |  | $ | 1,952 |
| Three Months Ended March 31, |  |
| 2020 |  | 2019
| (In thousands) |  |
Depreciation and amortization: |  |  |
Franchised Dealerships Segment | $ | 19,589 |  |  |  | $ | 20,237 |
EchoPark Segment | 2,708 |  |  |  | 2,412 |
Total depreciation and amortization | $ | 22,297 |  |  |  | $ | 22,649 |
| Three Months Ended March 31, |  |
| 2020 |  | 2019
| (In thousands) |  |
Floor Plan Interest Expense: |  |  |
Franchised Dealerships Segment | $ | 9,608 |  |  |  | $ | 12,505 |
EchoPark Segment | 900 |  |  |  | 721 |
Total floor plan interest expense | $ | 10,508 |  |  |  | $ | 13,226 |
| Three Months Ended March 31, |  |
| 2020 |  | 2019
| (In thousands) |  |
Interest Expense, Other, Net: |  |  |
Franchised Dealerships Segment | $ | 10,599 |  |  |  | $ | 12,414 |
EchoPark Segment | 366 |  |  |  | 439 |
Total interest expense, other, net | $ | 10,965 |  |  |  | $ | 12,853 |
| Three Months Ended March 31, |  |
| 2020 |  | 2019
| (In thousands) |  |
Capital expenditures: |  |  |
Franchised Dealerships Segment | $ | 17,249 |  |  |  | $ | 25,229 |
EchoPark Segment | 2,556 |  |  |  | 5,390 |
Total capital expenditures | $ | 19,805 |  |  |  | $ | 30,619 |

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- 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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