Segment Information

3 Months Ended

Mar. 31, 2021

Segment Reporting [Abstract]

Segment Information

9. Segment Information

As of March 31, 2022, Sonic had two 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”); and (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”). 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 months ended March 31, 2022 and 2021 were as follows (as restated, see Note 1, “Summary of Significant Accounting Policies”:

	Three Months Ended March 31,
	2022		2021
	(In millions)
	As Restated
Segment Revenues:
Franchised Dealerships Segment revenues:
Retail new vehicles	$	1,345.7	$	1,134.0
Fleet new vehicles	18.2		22.3
Total new vehicles	1,363.9		1,156.3
Used vehicles	853.7		661.5
Wholesale vehicles	106.3		56.2
Parts, service and collision repair	380.5		308.1
Finance, insurance and other, net	126.5		97.6
Franchised Dealerships Segment revenues	$	2,830.9	2279.7
EchoPark Segment revenues:
Retail new vehicles	$	5.6	—
Used vehicles	517.2		441.4
Wholesale vehicles	62.4		18.6
Finance, insurance and other, net	40.1		47.1
EchoPark Segment revenues	$	625.3	$	507.1
Total consolidated revenues	$	3,456.2	$	2,786.8

	Three Months Ended March 31,
	2022		2021
	(In millions)
Segment Income (Loss) (1):
Franchised Dealerships Segment	$	163.8	$	70.6
EchoPark Segment	(34.9)		2.0
Income from continuing operations before taxes	$	128.9	$	72.6

(1)Segment income (loss) for each segment is defined as income (loss) from continuing operations before taxes and impairment charges.

	Three Months Ended March 31,
	2022		2021
	(In millions)
Depreciation and Amortization:
Franchised Dealerships Segment	$	24.9	$	20.4
EchoPark Segment	5.0		3.2
Total depreciation and amortization	$	29.9	$	23.6

	Three Months Ended March 31,
	2022		2021
	(In millions)
Floor Plan Interest Expense:
Franchised Dealerships Segment	$	3.3	$	4.1
EchoPark Segment	1.7		1.0
Total floor plan interest expense	$	5.0	$	5.1

	Three Months Ended March 31,
	2022		2021
	(In millions)
Interest Expense, Other, Net:
Franchised Dealerships Segment	$	20.0	$	10.0
EchoPark Segment	0.8		0.3
Total interest expense, other, net	$	20.8	$	10.3

	Three Months Ended March 31,
	2022		2021
	(In millions)
Capital Expenditures:
Franchised Dealerships Segment	$	30.2	$	46.2
EchoPark Segment	28.6		21.5
Total capital expenditures	$	58.8	$	67.7

	March 31, 2022		December 31, 2021
	(In millions)
Assets:
Franchised Dealerships Segment	$	3,986.9	$	3,934.9
EchoPark Segment	659.1		740.6
Corporate and other:
Cash and cash equivalents	360.2		299.4
Other corporate assets	—		0.2
Total assets	$	5,006.2	$	4,975.1