Segment Information

6 Months Ended

Jun. 30, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

At June 30, 2012 and 2011, we had three operating and reportable segments: (1) Domestic, (2) Import, and (3) Premium Luxury. As of March 31, 2012, we revised the basis of segmentation for our Import and Premium Luxury segments to reclassify Audi franchises from the Import segment to the Premium Luxury segment. In connection with this change, we have reclassified historical amounts to conform to our current segment presentation. We have five Audi franchises for which we reclassified revenue of $47.6 million and segment income of $3.2 million for the three months ended June 30, 2011, and revenue of $87.3 million and segment income of $5.7 million for the six months ended June 30, 2011.

Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Ford, General Motors, and Chrysler. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, and Lexus. The franchises in each segment also sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products.

“Corporate and other” is comprised of our other businesses, including collision centers, a customer lead generation business, and an auction operation, each of which generates revenues, as well as unallocated corporate overhead expenses and retrospective commissions for certain financing and insurance transactions that we arrange under agreements with third parties.

The operating segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by our chief operating decision maker to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer. We have determined that our three operating segments also represent our reportable segments.

Reportable segment revenue and segment income are as follows:

	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2012		2011		2012		2011
Revenue:
Domestic	$	1,295.1	$	1,145.0	$	2,524.2	$	2,241.1
Import	1,475.8		1,165.9		2,842.4		2,423.4
Premium Luxury	1,093.4		989.2		2,115.6		1,907.2
Total segment revenue	3,864.3		3,300.1		7,482.2		6,571.7
Corporate and other	40.2		36.2		79.3		75.7
Total consolidated revenue	$	3,904.5	$	3,336.3	$	7,561.5	$	6,647.4

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2012			2011			2012			2011
Segment income*:
Domestic	$	53.6		$	46.4		$	103.3		$	89.1
Import	67.2			62.5			129.1			117.4
Premium Luxury	68.3			59.8			127.1			117.4
Total segment income	189.1			168.7			359.5			323.9
Corporate and other	(35.7		)	(35.2		)	(68.1		)	(61.6		)
Other interest expense	(22.5		)	(15.9		)	(43.0		)	(32.2		)
Interest income	0.1			0.3			0.2			0.6
Other income (loss), net	(1.4		)	0.5			0.6			2.2
Income from continuing operations before income taxes	$	129.6		$	118.4		$	249.2		$	232.9

* Segment income for each of our segments is defined as operating income less floorplan interest expense.