Segment Information

9 Months Ended

Sep. 30, 2021

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

At September 30, 2021 and 2020, we had three reportable segments: (1) Domestic, (2) Import, and (3) Premium Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Ford, General Motors, and Stellantis. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, Subaru, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, Audi, and Jaguar Land Rover. 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, AutoNation USA used vehicle stores, auction operations, and parts distribution centers, all of which generate revenues but do not meet the quantitative thresholds for reportable segments, as well as unallocated corporate overhead expenses and other income items.

The reportable 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.

The following table provides information on revenues from external customers and segment income of our reportable segments:

	Three Months Ended						Nine Months Ended
	September 30, 2021						September 30, 2021
	Domestic		Import		Premium Luxury		Domestic		Import		Premium Luxury
Revenues from external customers	$	1,955.2	$	1,983.3	$	2,218.0	$	5,926.7	$	5,927.9	$	6,790.0
Segment income (1)	$	149.1	$	200.7	$	206.1	$	436.6	$	530.3	$	590.3
	Three Months Ended						Nine Months Ended
	September 30, 2020						September 30, 2020
	Domestic		Import		Premium Luxury		Domestic		Import		Premium Luxury
Revenues from external customers	$	1,734.5	$	1,621.5	$	1,870.0	$	4,704.0	$	4,308.9	$	5,051.6
Segment income (1)	$	111.9	$	123.5	$	143.9	$	248.1	$	277.7	$	313.3
(1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.

The following is a reconciliation of total segment income for reportable segments to our consolidated income from continuing operations before income taxes:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2021		2020		2021		2020
Total segment income for reportable segments	$	555.9	$	379.3	$	1,557.2	$	839.1
Corporate and other	(57.5)		(118.7)		(207.7)		(638.2)
Other interest expense	(24.1)		(23.6)		(66.2)		(70.3)
Other income (loss), net	(0.8)		6.5		19.1		218.2
Income from continuing operations before income taxes	$	473.5	$	243.5	$	1,302.4	$	348.8