Segment Information

6 Months Ended

Jun. 30, 2020

As of June 30, 2020, the Company had three reportable segments: the U.S., the U.K. and Brazil. The U.S. and Brazil segments are led by the President, U.S. and Brazilian Operations, and the U.K. segment is led by a Managing Director, each reporting directly to the Company's Chief Executive Officer, who is the Chief Operating Decision Maker. The President, U.S. and Brazilian Operations, and the U.K. Managing Director are responsible for the overall performance of their respective regions, as well as for overseeing field level management. Each segment is comprised of retail automotive franchises that sell new and used cars and light trucks; arrange related vehicle financing; sell service insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts. The vast majority of the Company’s corporate activities are associated with the operations of the U.S. segment and therefore the corporate financial results are included within the U.S. segment.

Reportable segment revenues and income (loss) before income taxes were as follows for the three and six months ended June 30, 2020 and 2019 (in millions):



	Three Months Ended June 30, 2020										Six Months Ended June 30, 2020
	U.S.		U.K.			Brazil			Total		U.S.		U.K.			Brazil			Total
Total revenues	$	1,831.1	$	263.5		$	36.6		$	2,131.2	$	3,838.7	$	854.2		$	129.1		$	4,822.0
Income (loss) before income taxes⁽¹⁾	$	74.8	$	(19.7	)	$	(12.8	)	$	42.3	$	117.0	$	(22.3	)	$	(13.4	)	$	81.2



	Three Months Ended June 30, 2019									Six Months Ended June 30, 2019
	U.S.		U.K.			Brazil		Total		U.S.		U.K.		Brazil		Total
Total revenues	$	2,278.7	$	614.4		$	112.6	$	3,005.7	$	4,341.5	$	1,256.6	$	216.0	$	5,814.1
Income (loss) before income taxes⁽²⁾	$	63.8	$	(1.5	)	$	0.9	$	63.2	$	110.2	$	4.7	$	0.5	$	115.4

⁽¹⁾ For the three months ended June 30, 2020, income (loss) before income taxes includes the following: in the U.S. segment, $10.6 million in stock-based compensation expense related to an out-of-period adjustment and a $10.4 million loss on debt extinguishment; in the U.K. segment, $12.8 million in asset impairments and $1.2 million in severance expense; and in the Brazil segment, $11.1 million in asset impairments. For the six months ended June 30, 2020, income (loss) before income taxes includes the following: in the U.S. segment, $10.6 million in stock-based compensation expense related to an out-of-period adjustment and a $10.4 million loss on debt extinguishment; in the U.K. segment, $12.8 million in asset impairments and $1.2 million in severance expense; and in the Brazil segment, $11.1 million in asset impairments and $0.9 million in severance expense.

⁽²⁾ For the three months ended June 30, 2019, income (loss) before income taxes includes the following: in the U.S. segment, $4.0 million in expenses related to Texas hail storm damages; and in the Brazil segment, $0.5 million in asset impairment charges, $0.4 million gain on legal matters and $0.2 million net gain on disposition of real estate and dealership transactions. For the six months ended June 30, 2019, income (loss) before income taxes includes the following: in the U.S. segment, $6.0 million in expenses related to hail storm damages in Texas and Oklahoma, $5.2 million net gain on disposition of real estate and dealership transactions and $1.8 million net loss on legal matters; and in the Brazil segment, $0.5 million in asset impairment charges, $0.2 million net gain on disposition of real estate and dealership transactions and $0.2 million net loss on legal matters.