SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

As of March 31, 2024, the Company had two reportable segments: (1) Dealerships and (2) TCA. Our dealership operations are organized by management into geographic market-based groups within the Dealerships segment. The operations of our F&I product provider are reflected within our TCA segment. Our Chief Operating Decision Maker is our Chief Executive Officer who manages the business, regularly reviews financial information and allocates resources at the geographic market level for our dealerships and at the TCA segment level for our F&I product provider's operations. The geographic dealership group operating segments have been aggregated into one reportable segment as their operations (i) have similar economic characteristics (our markets all have similar long-term average gross margins), (ii) offer similar products and services (all of our markets offer new and used vehicles, parts and service, and finance and insurance products), (iii) have similar customers, (iv) have similar distribution and marketing practices (all of our markets distribute products and services through dealership facilities that market to customers in similar ways), and (v) operate under similar regulatory environments.

TCA's vehicle protection products are sold through affiliated dealerships and the revenue from the related commissions is included in finance and insurance, net revenue in the Dealerships segment before consolidation. The corresponding claims expense incurred and the amortization of deferred acquisition costs is recorded as a cost of sales in the TCA segment. The Dealerships segment also provides vehicle repair and maintenance services to TCA customers in connection with claims related to TCA's vehicle protection products. Upon consolidation, the associated service revenue and costs recorded by the Dealerships segment are eliminated against claims expense recorded by the TCA segment.

Reportable segment financial information for the three months ended March 31, 2024 and 2023, are as follows:

	Three Months Ended March 31, 2024
	Dealerships		TCA		Eliminations		Total Company
	(In millions)
Revenue	$	4,179.0	$	74.1	$	(51.9)	$	4,201.2
Gross profit	$	731.8	$	21.1	$	(2.9)	$	750.0

	Three Months Ended March 31, 2023
	Dealerships		TCA		Eliminations		Total Company
	(In millions)
Revenue	$	3,556.3	$	70.7	$	(44.7)	$	3,582.3
Gross profit	$	679.6	$	21.1	$	(4.5)	$	696.2

Total assets by segment as of March 31, 2024 and December 31, 2023 are as follows:

	As of March 31, 2024
	Dealerships		TCA		Eliminations		Total Company
	(In millions)
Total assets	$	9,207.1	$	982.0	$	(57.6)	$	10,131.5

	As of December 31, 2023
	Dealerships		TCA		Eliminations		Total Company
	(In millions)
Total assets	$	9,199.4	$	913.9	$	46.1	$	10,159.4