Note 6 - Segment Information

6 Months Ended

Jun. 30, 2023

Notes to Financial Statements

Segment Reporting Disclosure [Text Block]

6 – Segment Information

The Company currently has one reportable business segment - the Truck Segment. The Truck Segment includes the Company’s operation of a network of commercial vehicle dealerships throughout the United States and Ontario, Canada that provide an integrated one-stop source for the commercial vehicle needs of its customers, including retail sales of new and used commercial vehicles; aftermarket parts, service and collision center facilities; and financial services, including the financing of new and used commercial vehicle purchases, insurance products and truck leasing and rentals. The commercial vehicle dealerships are deemed a single reporting unit because they have similar economic characteristics. The Company’s chief operating decision maker considers the entire Truck Segment, not individual dealerships or departments within its dealerships, when making decisions about resources to be allocated to the segment and assessing its performance.

The Company also has revenues attributable to three other operating segments. These segments include a retail tire company, an insurance agency and a guest ranch operation and are included in the All Other column below. None of these segments has ever met any of the quantitative thresholds for determining reportable segments.

The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on income before income taxes, not including extraordinary items.

The following table contains summarized information about reportable segment revenues, segment income or loss from continuing operations and segment assets for the periods ended June 30, 2023 and 2022 (in thousands):

	Truck Segment		All Other			Total
As of and for the three months ended June 30, 2023
Revenues from external customers	$	1,999,028	$	4,024		$	2,003,052
Segment operating income		142,869		(10	)		142,859
Segment income before taxes		130,535		(10	)		130,525
Segment assets		4,070,544		55,777			4,126,321
For the six months ended June 30, 2023
Revenues from external customers	$	3,906,969	$	7,850		$	3,914,819
Segment operating income		270,432		203			270,635
Segment income before taxes		249,462		203			249,665
As of and for the three months ended June 30, 2022
Revenues from external customers	$	1,786,927	$	4,314		$	1,791,241
Segment operating income		134,506		517			135,023
Segment income before taxes		139,765		423			140,188
Segment assets		3,615,745		53,624			3,669,369
For the six months ended June 30, 2022
Revenues from external customers	$	3,345,979	$	8,464		$	3,354,443
Segment operating income		241,826		696			242,522
Segment income before taxes		260,023		509			260,532