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Segment Information | 9 Months Ended
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Sep. 30, 2022
Segment Reporting [Abstract] |
Segment Information | 9. Segment Information As of September 30, 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 and nine months ended September 30, 2023 and 2022 were as follows:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (In millions)
Revenues: |  |  |  |  |  |  |
Franchised Dealerships Segment revenues: |  |  |  |  |  |  |
Retail new vehicles | $ | 1,546.7 |  |  | $ | 1,359.6 |  |  | $ | 4,550.9 |  |  | $ | 4,047.1 |
Fleet new vehicles | 23.2 |  |  | 32.0 |  |  | 70.4 |  |  | 70.0 |
Total new vehicles | 1,569.9 |  |  | 1,391.6 |  |  | 4,621.3 |  |  | 4,117.1 |
Used vehicles | 780.7 |  |  | 842.4 |  |  | 2,322.8 |  |  | 2,568.1 |
Wholesale vehicles | 51.4 |  |  | 75.8 |  |  | 165.3 |  |  | 261.2 |
Parts, service and collision repair | 431.8 |  |  | 404.7 |  |  | 1,289.0 |  |  | 1,183.4 |
Finance, insurance and other, net | 126.0 |  |  | 125.8 |  |  | 375.4 |  |  | 382.1 |
Franchised Dealerships Segment revenues | $ | 2,959.8 |  |  | $ | 2,840.3 |  |  | $ | 8,773.8 |  |  | $ | 8,511.9 |
EchoPark Segment revenues: |  |  |  |  |  |  |
Retail new vehicles | $ | — |  |  | $ | 1.6 |  |  | $ | 1.0 |  |  | $ | 7.3 |
Used vehicles | 554.8 |  |  | 511.4 |  | 1,651.3 |  |  | 1,601.3 |
Wholesale vehicles | 26.6 |  |  | 38.9 |  |  | 89.1 |  |  | 143.3 |
Finance, insurance and other, net | 45.3 |  |  | 38.9 |  |  | 136.4 |  |  | 121.8 |
EchoPark Segment revenues | $ | 626.7 |  |  | $ | 590.8 |  |  | $ | 1,877.8 |  |  | $ | 1,873.7 |
Powersports Segment revenues: |  |  |  |  |  |  |
Retail new vehicles | $ | 26.8 |  |  | $ | 10.6 |  |  | $ | 72.5 |  |  | $ | 13.0 |
Used vehicles | 4.9 |  |  | 2.0 |  |  | 17.1 |  |  | 5.0 |
Wholesale vehicles | 1.3 |  |  | — |  |  | 1.9 |  |  | 0.3 |
Parts, service and collision repair | 21.6 |  |  | 3.5 |  |  | 38.6 |  |  | 5.2 |
Finance, insurance and other, net | 2.4 |  |  | 0.9 |  |  | 5.9 |  |  | 1.4 |
Powersports Segment revenues | $ | 57.0 |  |  | $ | 17.0 |  |  | $ | 136.0 |  |  | $ | 24.9 |
Total consolidated revenues | $ | 3,643.5 |  |  | $ | 3,448.1 |  |  | $ | 10,787.6 |  |  | $ | 10,410.5 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (In millions)
Segment Income (Loss) (1): |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 101.5 |  |  | $ | 146.3 |  |  | $ | 357.2 |  |  | $ | 472.2 |
EchoPark Segment | (16.9) |  |  | (31.1) |  |  | (116.5) |  |  | (100.6) |
Powersports Segment | 6.6 |  |  | 1.2 |  |  | 9.2 |  |  | 0.9 |
Total segment income | $ | 91.2 |  |  | $ | 116.4 |  |  | $ | 249.9 |  |  | $ | 372.5 |
Impairment charges | — |  |  | — |  |  | (62.6) |  |  | — |
Income before taxes | $ | 91.2 |  |  | $ | 116.4 |  |  | $ | 187.3 |  |  | $ | 372.5 |
(1)Segment income (loss) for each segment is defined as income (loss) before taxes and impairment charges.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (In millions)
Depreciation and Amortization: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 28.2 |  |  | $ | 25.8 |  |  | $ | 82.8 |  |  | $ | 75.8 |
EchoPark Segment | 6.1 |  |  | 6.8 |  |  | 20.4 |  |  | 17.7 |
Powersports Segment | 0.9 |  |  | 0.2 |  |  | 2.5 |  |  | 0.5 |
Total depreciation and amortization | $ | 35.2 |  |  | $ | 32.8 |  |  | $ | 105.7 |  |  | $ | 94.0 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (In millions)
Floor Plan Interest Expense: |  |  |  |  |  |  |
Franchised Dealerships Segment (1) | $ | 12.9 |  |  | $ | 6.6 |  |  | $ | 34.7 |  |  | $ | 13.9 |
EchoPark Segment | 4.3 |  |  | 3.0 |  |  | 13.6 |  |  | 6.7 |
Powersports Segment | 0.2 |  |  | — |  |  | 0.6 |  |  | — |
Total floor plan interest expense | $ | 17.4 |  |  | $ | 9.6 |  |  | $ | 48.9 |  |  | $ | 20.6 |
(1)Amount is net of interest earned on the floor plan deposit balance of $5.0 million and $0.9 million in the three months ended September 30, 2023 and 2022, respectively, and $13.8 million and $2.3 million in the nine months ended September 30, 2023 and 2022, respectively.
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (In millions)
Interest Expense, Other, Net: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 27.9 |  |  | $ | 21.4 |  |  | $ | 82.2 |  |  | $ | 61.7 |
EchoPark Segment | 0.7 |  |  | 1.1 |  |  | 2.5 |  |  | 3.0 |
Powersports Segment | 0.4 |  |  | 0.4 |  |  | 1.5 |  |  | 0.4 |
Total interest expense, other, net | $ | 29.0 |  |  | $ | 22.9 |  |  | $ | 86.2 |  |  | $ | 65.1 |
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2023 |  | 2022 |  | 2023 |  | 2022
| (In millions)
Capital Expenditures: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 72.1 |  |  | $ | 43.8 |  |  | $ | 137.3 |  |  | $ | 95.8 |
EchoPark Segment | 5.4 |  |  | 53.5 |  |  | 14.1 |  |  | 101.8 |
Powersports Segment | 0.6 |  |  | — |  |  | 2.2 |  |  | — |
Total capital expenditures | $ | 78.1 |  |  | $ | 97.3 |  |  | $ | 153.6 |  |  | $ | 197.6 |
| September 30, 2023 |  | December 31, 2022 |  |  |  |
| (In millions) |  |  |  |
Assets: |  |  |  |  |  |  |
Franchised Dealerships Segment | $ | 3,806.0 |  |  | $ | 4,091.7 |  |  |  |  |
EchoPark Segment | 700.9 |  |  | 267.6 |  |  |  |  |
Powersports Segment | 208.8 |  |  | 117.8 |  |  |  |  |
Corporate and other: |  |  |  |  |  |  |
Cash and cash equivalents | 34.6 |  |  | 229.2 |  |  |  |  |
Floor plan deposit balance | 300.0 |  |  | 272.0 |  |  |  |  |
Total assets | $ | 5,050.3 |  |  | $ | 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 -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 2: 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 3: 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 4: http://www.xbrl.org/2003/role/disclosureRef -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 5: 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 6: 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 7: 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 8: http://www.xbrl.org/2003/role/disclosureRef -Topic 280 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//280/tableOfContent Reference 9: 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 10: 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 11: 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 Reference 12: 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 13: 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 14: 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 + Details
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