Segment Information

12 Months Ended

Jan. 01, 2023

Segment Reporting [Abstract]

Segment Information

Segment Information

The Company has two operating segments: United States, and International. The Company’s two operating segments represent its two reportable segments. These segments represent geographic areas and reflect how the chief operating decision maker allocates resources and measures results. Both segments earn fees by providing services to buyers and sellers of vehicles sold through its channels.

Intercompany (income) expense related to charges for services provided by the United States segment to the International segment are based on the benefits received. Such services are related to technology and other business support services.

Financial information regarding the Company’s reportable segments is set forth below as of and for the year ended January 1, 2023 (in millions):

	United States		International		Consolidated
Revenues:
Service revenues	$	1,539.7	$	146.7	$	1,686.4
Vehicle sales	161.1		251.4		412.5
Total revenues	1,700.8		398.1		2,098.9
Operating expenses:
Cost of services	874.8		121.7		996.5
Cost of vehicle sales	151.9		215.8		367.7
Selling, general and administrative	189.4		22.7		212.1
Depreciation and amortization	85.3		20.3		105.6
Total operating expenses	1,301.4		380.5		1,681.9
Operating profit	399.4		17.6		417.0
Interest expense, net	51.7		(0.7)		51.0
Other expense (income), net	5.8		(1.2)		4.6
Intercompany (income) expense	(10.3)		10.3		—
Income before income taxes	352.2		9.2		361.4
Income taxes	65.0		4.0		69.0
Net income	$	287.2	$	5.2	$	292.4
Total assets	$	2,775.8	$	587.1	$	3,362.9
Capital expenditures	$	166.3	$	12.0	$	178.3

Financial information regarding the Company’s reportable segments is set forth below as of and for the year ended January 2, 2022 (in millions):

	United States		International		Consolidated
Revenues:
Service revenues	$	1,429.2	$	108.5	$	1,537.7
Vehicle sales	134.1		165.6		299.7
Total revenues	1,563.3		274.1		1,837.4
Operating expenses:
Cost of services	776.3		75.2		851.5
Cost of vehicle sales	118.1		143.1		261.2
Selling, general and administrative	178.6		13.7		192.3
Depreciation and amortization	75.9		10.6		86.5
Total operating expenses	1,148.9		242.6		1,391.5
Operating profit	414.4		31.5		445.9
Interest expense, net	58.0		(0.3)		57.7
Other expense (income), net	0.5		(0.3)		0.2
Intercompany (income) expense	(8.5)		8.5		—
Income before income taxes	364.4		23.6		388.0
Income taxes	87.6		6.0		93.6
Net income	$	276.8	$	17.6	$	294.4
Total assets	$	2,510.1	$	644.2	$	3,154.3
Capital expenditures	$	124.9	$	10.7	$	135.6

Financial information regarding the Company’s reportable segments is set forth below as of and for the year ended December 27, 2020 (in millions):

	United States		International		Consolidated
Revenues:
Service revenues	$	1,134.4	$	98.7	$	1,233.1
Vehicle sales	80.7		71.1		151.8
Total revenues	1215.1		169.8		1384.9
Operating expenses:
Cost of services	659.8		61.9		721.7
Cost of vehicle sales	64.6		60.6		125.2
Selling, general and administrative	135.0		9.9		144.9
Depreciation and amortization	74.3		6.8		81.1
Total operating expenses	933.7		139.2		1,072.9
Operating profit	281.4		30.6		312.0
Interest expense	56.2		(0.2)		56.0
Other income, net	(0.7)		(0.3)		(1.0)
Intercompany (income) expense	(8.0)		8.0		—
Income before income taxes	233.9		23.1		257.0
Income taxes	56.9		5.3		62.2
Net income	$	177.0	$	17.8	$	194.8
Total assets	$	2,341.1	$	187.8	$	2,528.9
Capital expenditures	$	52.3	$	17.5	$	69.8

Geographic Information

The Company’s international operations include Canada and the U.K. Information regarding the geographic areas of the Company’s operations is set forth below (in millions):

	January 1, 2023		January 2, 2022
Long-lived assets
U.S.	$	1,439.1	$	1,205.5
Foreign	148.6		157.0
	$	1,587.7	$	1,362.5