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Segments
 9 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segments Segments

While we have determined that each individual store is a reporting unit, we have aggregated our reporting units into three reportable segments based on their economic similarities: Domestic, Import and Luxury.

Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors and Ford. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Honda, Toyota, Subaru, Nissan and Volkswagen. Our Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by BMW, Mercedes and Lexus. The franchises in each segment also sell used vehicles, parts and automotive services, as well as automotive finance and insurance products.

Corporate and other revenue and income includes the results of operations of our stand-alone body shops offset by unallocated corporate overhead expenses, such as corporate personnel costs, and certain unallocated reserve and elimination adjustments. Additionally, certain internal corporate expense allocations increase segment income for Corporate and other while decreasing segment income for the other reportable segments. These internal corporate expense allocations are used to increase comparability of our dealerships and reflect the capital burden a stand-alone dealership would experience. Examples of these internal allocations include internal rent expense, internal floor plan financing charges, and internal fees charged to offset employees within our corporate headquarters who perform certain dealership functions.

We define our chief operating decision maker (“CODM”) to be certain members of our executive management group. Historical and forecasted operational performance is evaluated on a store-by-store basis and on a consolidated basis by the CODM. We derive the operating results of the segments directly from our internal management reporting system. The accounting policies used to derive segment results are substantially the same as those used to determine our consolidated results, excepted for the internal allocation within Corporate and other discussed above. Our CODM does not regularly review capital expenditures on a reporting unit level. Performance measurement of each reportable segment by the CODM are based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of and to allocate resources, mainly associated with expected inventory and working capital requirements, to each of the reportable segments.


Certain financial information on a segment basis is as follows (in millions):
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2020
 
2019
 
2020
 
2019
Revenues:
 
 

 
 

 
 

 
 

Domestic
 
 
 
 
 
 
 
 
New vehicle retail
 
$
621.3

 
$
613.0

 
$
1,591.0

 
$
1,682.7

Used vehicle retail
 
378.8

 
328.1

 
1,096.4

 
949.6

Used vehicle wholesale
 
31.9

 
30.3

 
77.7

 
89.5

Finance and insurance
 
53.2

 
48.1

 
149.2

 
137.2

Service, body and parts
 
118.0

 
122.8

 
337.5

 
359.2

Fleet and other
 
11.5

 
15.5

 
35.1

 
47.6

 
 
1,214.7

 
1,157.8

 
3,286.9

 
3,265.8

Import
 
 
 
 
 
 
 
 
New vehicle retail
 
822.9

 
824.8

 
1,995.9

 
2,198.1

Used vehicle retail
 
451.9

 
380.9

 
1,152.6

 
1,085.7

Used vehicle wholesale
 
42.2

 
28.4

 
88.6

 
85.3

Finance and insurance
 
81.1

 
65.2

 
195.0

 
180.9

Service, body and parts
 
141.3

 
129.2

 
371.3

 
374.2

Fleet and other
 
11.1

 
9.2

 
28.9

 
38.1

 
 
1,550.5

 
1,437.7

 
3,832.3

 
3,962.3

Luxury
 
 
 
 
 
 
 
 
New vehicle retail
 
440.8

 
387.0

 
1,039.0

 
1,110.2

Used vehicle retail
 
261.8

 
206.7

 
642.5

 
596.0

Used vehicle wholesale
 
24.8

 
16.4

 
50.3

 
59.0

Finance and insurance
 
25.6

 
19.2

 
60.2

 
54.1

Service, body and parts
 
96.0

 
84.9

 
244.8

 
248.0

Fleet and other
 
1.9

 
15.2

 
13.9

 
81.7

 
 
850.9

 
729.4

 
2,050.7

 
2,149.0

 
 
3,616.1


3,324.9


9,169.9

 
9,377.1

Corporate and other
 
4.1

 
7.5

 
12.6

 
26.7

 
 
$
3,620.2


$
3,332.4


$
9,182.5

 
$
9,403.8

Segment income1:
 
 

 
 

 
 

 
 

Domestic
 
$
81.1

 
$
37.9

 
$
168.3

 
$
94.1

Import
 
102.6

 
48.3

 
176.2

 
117.8

Luxury
 
39.2

 
13.0

 
53.1

 
36.5

Total segment income for reportable segments
 
$
222.9

 
$
99.2

 
$
397.6

 
$
248.4

1Segment income for each of the segments is defined as income before income taxes, depreciation and amortization, other interest expense and other income, net.

Reconciliation of total segment income for reportable segments to our consolidated income before income taxes.
 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
 
2020
 
2019
 
2020
 
2019
Total segment income for reportable segments
 
$
222.9

 
$
99.2

 
$
397.6

 
$
248.4

Corporate and other
 
33.5

 
50.6

 
103.5

 
129.3

Depreciation and amortization
 
(22.9
)
 
(20.9
)
 
(67.3
)
 
(60.9
)
Other interest expense
 
(16.6
)
 
(14.8
)
 
(50.4
)
 
(45.0
)
Other income, net
 
2.2

 
3.3

 
8.2

 
8.9

Income before income taxes
 
$
219.1

 
$
117.4

 
$
391.6

 
$
280.7


 
 
September 30, 2020
 
December 31, 2019
Total assets:
 
 
 
 
Domestic
 
$
1,249.9

 
$
1,467.6

Import
 
1,477.7

 
1,306.5

Luxury
 
869.3

 
945.2

Corporate and other
 
2,798.8

 
2,364.6

 
 
$
6,395.7

 
$
6,083.9