SEGMENTS

6 Months Ended

Jun. 30, 2024

Segment Reporting [Abstract]

SEGMENTS

SEGMENTS

We operate in two reportable segments: Vehicle Operations and Financing Operations. Our Vehicle Operations consists of all aspects of our auto merchandising and service operations, excluding financing provided by our Financing Operations. Our Financing Operations segment provides financing to customers buying and leasing retail vehicles from our Vehicle Operations, as well as leasing vehicles from our fleet management services provider.

All other remaining unallocated corporate overhead expenses and internal charges are reported under “Corporate and Other.” Asset information by segment is not utilized for purposes of assessing performance or allocating resources and, as a result, such information has not been presented.

Certain financial information on a segment basis is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
(in millions)	2024		2023		2024		2023
Vehicle operations revenue	$	9,231.8	$	8,111.5	$	17,793.6	$	15,091.0
Vehicle operations gross profit	1,423.9		1,385.1		2,759.1		2,596.3
Floor plan interest expense	(76.6)		(34.7)		(137.3)		(62.3)
Vehicle operations selling, general and administrative	(1,052.7)		(848.4)		(2,042.8)		(1,671.5)
Vehicle operations income	294.6		502.0		579.0		862.5
Financing operations interest margin:
Interest and fee income	83.8		59.4		161.1		108.7
Interest expense	(47.0)		(45.6)		(94.8)		(83.1)
Total interest margin	36.8		13.8		66.3		25.6
Lease income	29.0		4.6		51.4		9.2
Depreciation and amortization	(27.3)		(2.0)		(45.3)		(4.4)
Lease income, net	1.7		2.6		6.1		4.8
Selling, general and administrative	(11.1)		(9.3)		(21.8)		(17.9)
Provision expense	(20.2)		(25.8)		(45.2)		(52.0)
Financing operations income (loss)	7.2		(18.7)		5.4		(39.5)
Total segment income for reportable segments	301.8		483.3		584.4		823.0
Corporate and other	77.5		6.2		133.3		64.9
Depreciation and amortization	(62.3)		(48.4)		(120.0)		(95.6)
Other interest expense	(61.2)		(43.9)		(124.8)		(83.0)
Other income, net	27.0		9.8		30.4		12.0
Income before income taxes	$	282.8	$	407.0	$	503.3	$	721.3