Segment Information Segment Information

12 Months Ended

Dec. 31, 2017

Segment Reporting [Abstract]

Segment Reporting Disclosure [Text Block]

20. SEGMENT INFORMATION

As of December 31, 2017, the Company had three reportable segments: (1) the U.S., (2) the U.K., and (3) Brazil. Each of the reportable segments is comprised of retail automotive franchises, which sells new and used cars and light trucks; arranges related vehicle financing; sells service insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts. The vast majority of the Company’s corporate activities are associated with the operations of the U.S. operating segments and therefore the corporate financial results are included within the U.S. reportable segment.

Reportable segment revenue, gross profit, SG&A, depreciation and amortization expense, asset impairment, floorplan interest expense, other interest expense, benefit (provision) for income taxes, net income (loss) and capital expenditures were as follows for the years ended December 31, 2017, 2016 and 2015:

	Year Ended December 31, 2017
	U.S.				U.K.			Brazil				Total
	(In thousands)
New vehicle retail sales	$	4,768,864			$	1,092,612		$	296,055			$	6,157,531
Used vehicle retail sales	2,160,699				546,266			92,021				2,798,986
Used vehicle wholesale sales	250,668				136,847			12,655				400,170
Parts and service	1,124,380				165,755			47,897				1,338,032
Finance, insurance and other, net	375,954				44,523			8,525				429,002
Total revenues	8,680,565			(1)	1,986,003			457,153				11,123,721
Gross profit	1,365,314				225,253			54,942				1,645,509
Selling, general and administrative expense	983,974			(2)	191,570			50,651				1,226,195
Depreciation and amortization expense	48,285				8,198			1,453				57,936
Asset impairment	12,762				—			6,744				19,506
Floorplan interest expense	(47,221		)		(4,727		)	(424		)		(52,372		)
Other interest expense, net	(66,493		)		(3,664		)	(340		)		(70,497		)
Income (loss) before income taxes	206,579				17,094			(4,670		)		219,003
(Provision) benefit for income taxes	(5,679		)	(3)	(2,142		)	2,260				(5,561		)
Net income (loss)	200,900			(4)	14,952			(2,410		)	(5)	213,442
Capital expenditures	$	77,477			$	19,944		$	880			$	98,301

⁽¹⁾ Includes the impact of chargeback reserves for finance and insurance revenues associated with catastrophic events of $6.6 million.

⁽²⁾ Includes the following, pre-tax: gain on OEM settlement of $1.8 million and loss due to catastrophic events of $8.8 million.

⁽³⁾ Includes a tax benefit of $73.0 million associated with a reduction in the corporate income tax rate enacted in the Tax Act.

⁽⁴⁾ Includes the after-tax impact of the items noted above and the after-tax non-cash asset impairment charges of $8.0 million.

⁽⁵⁾ Includes after-tax non-cash asset impairment charges of $4.4 million.

	Year Ended December 31, 2016
	U.S.				U.K.			Brazil				Total
	(In thousands)
New vehicle retail sales	$	4,766,047			$	987,538		$	292,490			$	6,046,075
Used vehicle retail sales	2,242,508				434,203			81,002				2,757,713
Used vehicle wholesale sales	276,710				121,747			3,406				401,863
Parts and service	1,071,651				143,362			46,294				1,261,307
Finance, insurance and other, net	377,756				36,305			6,593				420,654
Total revenues	8,734,672				1,723,155			429,785				10,887,612
Gross profit	1,355,349				192,982			46,738				1,595,069
Selling, general and administrative expense	965,139			(1)	158,636			46,988			(3)	1,170,763
Depreciation and amortization expense	43,472				6,594			1,168				51,234
Asset impairment	21,794				201			10,843				32,838
Floorplan interest expense	(40,444		)		(4,222		)	(261		)		(44,927		)
Other interest expense, net	(62,320		)		(5,197		)	(419		)		(67,936		)
Income (loss) before income taxes	222,180				18,132			(12,941		)		227,371
(Provision) benefit for income taxes	(82,541		)		(3,697		)	5,932				(80,306		)
Net income (loss)	139,639			(2)	14,435			(7,009		)	(4)	147,065
Capital expenditures	$	86,692			$	12,602		$	1,312			$	100,606

⁽¹⁾ Includes the following, pre-tax: gain on OEM settlement of $11.7 million, loss due to catastrophic events of $5.9 million, a net gain on real estate and dealership transactions of $2.7 million, and severance costs of $1.8 million.

⁽²⁾ Includes the following, after tax: non-cash asset impairment charges of $13.5 million, gain on OEM settlement of $7.3 million, loss due to catastrophic events of $3.7 million, net gain on real estate and dealership transactions of $1.7 million, and severance costs of $1.2 million.

⁽³⁾ Includes pre-tax loss on real estate and dealership transactions of $0.8 million.

⁽⁴⁾ Includes after-tax non-cash asset impairment charges of $6.9 million and a foreign deferred income tax benefit of $1.7 million.

	Year Ended December 31, 2015
	U.S.				U.K.			Brazil				Total
	(In thousands)
New vehicle retail sales	$	4,989,290			$	641,888		$	370,128			$	6,001,306
Used vehicle retail sales	2,204,728				351,311			82,930				2,638,969
Used vehicle wholesale sales	289,580				100,706			6,965				397,251
Parts and service	1,032,960				102,183			51,050				1,186,193
Finance, insurance and other, net	377,432				24,117			7,237				408,786
Total revenues	8,893,990				1,220,205			518,310				10,632,505
Gross profit	1,338,947				137,646			57,379				1,533,972
Selling, general and administrative expense	958,608			(1)	108,719			53,506				1,120,833
Depreciation and amortization expense	41,220				4,307			1,712				47,239
Asset impairment	18,983				330			68,249				87,562
Floorplan interest expense	(36,062		)		(2,276		)	(926		)		(39,264		)
Other interest expense, net	(52,277		)		(3,135		)	(1,491		)		(56,903		)
Income before income taxes	231,797				18,879			(68,505		)		182,171
(Provision) benefit for income taxes	(89,433		)		(3,655		)	4,916				(88,172		)
Net income (loss)	142,364			(2)	15,224			(63,589		)	(3)	93,999
Capital expenditures	$	97,504			$	9,395		$	333			$	107,232

⁽¹⁾ Includes the following, pre-tax: loss due to catastrophic events of $1.6 million, a net gain on real estate and dealership transactions of $8.9 million, and legal items of $1.0 million.

⁽²⁾ Includes the following, after tax: loss due to catastrophic events of $1.0 million, net gain on real estate and dealership transactions of $5.5 million, and non-cash asset impairment charges of $12.0 million.

⁽³⁾ Includes after-tax non-cash asset impairment charges of $62.4 million.

Goodwill and intangible franchise rights and total assets by reportable segment were as follows:

	As of December 31, 2017
	U.S.		U.K.		Brazil		Total
	(In thousands)
Goodwill and intangible franchise rights	$	1,091,248	$	94,517	$	12,901	$	1,198,666
Total assets	$	4,087,039	$	654,154	$	129,872	$	4,871,065

	As of December 31, 2016
	U.S.		U.K.		Brazil		Total
	(In thousands)
Goodwill and intangible franchise rights	$	1,066,469	$	74,391	$	20,779	$	1,161,639
Total assets	$	3,855,701	$	482,937	$	123,265	$	4,461,903