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Segment Information | 3 Months Ended
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Mar. 31, 2022
Segment Reporting [Abstract] |
Segment Information | 9. Segment Information As of March 31, 2023, Sonic had three operating segments: (1) retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle maintenance, warranty and repair services, and arrange finance and insurance products (the “Franchised Dealerships Segment”); (2) pre-owned vehicle specialty retail locations that provide guests 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”); and (3) retail locations that sell new and used powersports vehicles, perform vehicle maintenance, warranty and repair services, and arrange finance and insurance products (the “Powersports 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, 2023 and 2022 were as follows:
| Three Months Ended March 31, |  |
| 2023 |  | 2022 |  |  |  |
| (In millions)
Revenues: |  |  |  |  |  |  |
Franchised Dealerships Segment revenues: |  |  |  |  |  |  |
Retail new vehicles | $ | 1,421.0 |  |  | $ | 1,345.7 |  |  |  |  |
Fleet new vehicles | 18.8 |  |  | 18.2 |  |  |  |  |
Total new vehicles | $ | 1,439.8 |  |  | $ | 1,363.9 |  |  |  |  |
Used vehicles | 767.6 |  |  | 853.6 |  |  |  |  |
Wholesale vehicles | 58.4 |  |  | 106.4 |  |  |  |  |
Parts, service and collision repair | 423.8 |  |  | 380.5 |  |  |  |  |
Finance, insurance and other, net | 117.1 |  |  | 126.5 |  |  |  |  |
Franchised Dealerships Segment revenues | $ | 2,806.7 |  |  | $ | 2,830.9 |  |  |  |  |
EchoPark Segment revenues: |  |  |  |  |  |  |
Retail new vehicles | $ | 1.0 |  |  | $ | 4.4 |  |  |  |  |
Used vehicles | 572.5 |  |  | 515.4 |  |  |  |
Wholesale vehicles | 27.0 |  |  | 62.4 |  |  |  |  |
Finance, insurance and other, net | 50.0 |  |  | 39.9 |  |  |  |  |
EchoPark Segment revenues | $ | 650.5 |  |  | $ | 622.1 |  |  |  |  |
Powersports Segment revenues: |  |  |  |  |  |  |
Retail new vehicles | $ | 20.8 |  |  | $ | 1.2 |  |  |  |  |
Used vehicles | 4.8 |  |  | 1.1 |  |  |  |  |
Wholesale vehicles | 0.2 |  |  | — |  |  |  |  |
Parts, service and collision repair | 6.7 |  |  | 0.7 |  |  |  |  |
Finance, insurance and other, net | 1.5 |  |  | 0.2 |  |  |  |  |
Powersports Segment revenues | $ | 34.0 |  |  | $ | 3.2 |  |  |  |  |
Total consolidated revenues | $ | 3,491.2 |  |  | $ | 3,456.2 |  |  |  |  |
| Three Months Ended March 31, |  |
| 2023 |  | 2022 |  |  |  |
| (In millions)
Segment Income (Loss) (1): |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 109.8 |  |  | $ | 163.8 |  |  |  |  |
EchoPark Segment | (46.8) |  |  | (35.3) |  |  |  |  |
Powersports Segment | 0.6 |  |  | 0.4 |  |  |  |  |
Income before taxes | $ | 63.6 |  |  | $ | 128.9 |  |  |  |  |
(1)Segment income (loss) for each segment is defined as income (loss) before taxes and impairment charges.
| Three Months Ended March 31, |  |
| 2023 |  | 2022 |  |  |  |
| (In millions)
Depreciation and Amortization: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 26.5 |  |  | $ | 24.9 |  |  |  |  |
EchoPark Segment | 7.0 |  |  | 5.0 |  |  |  |  |
Powersports Segment | 0.8 |  |  | — |  |  |  |  |
Total depreciation and amortization | $ | 34.3 |  |  | $ | 29.9 |  |  |  |  |
| Three Months Ended March 31, |  |
| 2023 |  | 2022 |  |  |  |
| (In millions)
Floor Plan Interest Expense: |  |  |  |  |  |  |
Franchised Dealerships Segment (1) | $ | 9.9 |  |  | $ | 3.3 |  |  |  |  |
EchoPark Segment | 4.6 |  |  | 1.7 |  |  |  |  |
Powersports Segment | 0.1 |  |  | — |  |  |  |  |
Total floor plan interest expense | $ | 14.6 |  |  | $ | 5.0 |  |  |  |  |
(1)Amount is net of interest earned on the floor plan deposit balance of $4.1 million and $0.6 million in the three months ended March 31, 2023 and 2022, respectively.
| Three Months Ended March 31, |  |
| 2023 |  | 2022 |  |  |  |
| (In millions)
Interest Expense, Other, Net: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 26.9 |  |  | $ | 20.0 |  |  |  |  |
EchoPark Segment | 0.9 |  |  | 0.8 |  |  |  |  |
Powersports Segment | 0.6 |  |  | — |  |  |  |  |
Total interest expense, other, net | $ | 28.4 |  |  | $ | 20.8 |  |  |  |  |
| Three Months Ended March 31, |  |
| 2023 |  | 2022 |  |  |  |
| (In millions)
Capital Expenditures: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 31.0 |  |  | $ | 30.2 |  |  |  |  |
EchoPark Segment | 5.7 |  |  | 28.6 |  |  |  |  |
Powersports Segment | 0.5 |  |  | — |  |  |  |  |
Total capital expenditures | $ | 37.2 |  |  | $ | 58.8 |  |  |  |  |
| March 31, 2023 |  | December 31, 2022 |  |  |  |
| (In millions) |  |  |  |
Assets: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 4,468.9 |  |  | $ | 4,363.7 |  |  |  |  |
EchoPark Segment | 319.0 |  |  | 267.6 |  |  |  |  |
Powersports Segment | 199.9 |  |  | 117.8 |  |  |  |  |
Corporate and other: |  |  |  |  |  |  |
Cash and cash equivalents | 160.2 |  |  | 229.2 |  |  |  |  |
Total assets | $ | 5,148.0 |  |  | $ | 4,978.3 |  |  |  |  |

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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://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8924-108599 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8981-108599 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (a) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9031-108599 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (f) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 6: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (e) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9038-108599 Reference 9: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -Subparagraph (d) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8933-108599 Reference 10: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 22 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8736-108599 Reference 11: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e9054-108599 Reference 12: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 15 -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8657-108599 Reference 13: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 21 -Subparagraph (b) -URI https://asc.fasb.org/extlink&oid=126901519&loc=d3e8721-108599 Reference 14: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI https://asc.fasb.org/topic&trid=2134510 + Details
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