Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

Segment Information

Our operations are organized by management into operating segments by line of business and geography. We have determined that we have four reportable segments as defined in generally accepted accounting principles for segment reporting: (i) Retail Automotive, consisting of our retail automotive dealership operations; (ii) Retail Commercial Truck, consisting of our retail commercial truck dealership operations in the U.S. and Canada; (iii) Other, consisting of our commercial vehicle and power systems distribution operations; and (iv) Non-Automotive Investments, consisting of our equity method investments in non-automotive operations which includes our investment in PTS and other various investments. The Retail Automotive reportable segment includes all automotive dealerships and all departments relevant to the operation of the dealerships and our retail automotive joint ventures. The individual dealership operations included in the Retail Automotive reportable segment represent six operating segments: Eastern, Central, and Western United States, Used Vehicle Dealerships United States, International, and Used Vehicle Dealerships International. These operating segments have been aggregated into one reportable segment as their operations (A) have similar economic characteristics (all are automotive dealerships having similar margins), (B) offer similar products and services (all sell new and/or used vehicles, service, parts, and third-party finance and insurance products), (C) have similar target markets and customers (generally individuals), and (D) have similar distribution and marketing practices (all distribute products and services through dealership facilities that market to customers in similar fashions). The accounting policies of the segments are the same and are described in Note 1.

The following table summarizes revenues, floor plan interest expense, other interest expense, depreciation, equity in earnings of affiliates, and income from continuing operations before certain non-recurring items and income taxes, which is

the measure by which management allocates resources to its segments and which we refer to as adjusted segment income, for each of our reportable segments.

	Retail Automotive		Retail Commercial Truck		Other		Non-Automotive Investments		Intersegment Elimination		Total
Revenues
2021	$	22,513.3	$	2,465.7	$	575.7	$	—	$	—	$	25,554.7
2020	17,928.8		2,060.9		454.2		—		—		20,443.9
2019	20,615.8		2,050.5		513.1		—		—		23,179.4
Floor plan interest expense
2021	$	23.9	$	1.9	$	0.4	$	—	$	—	$	26.2
2020	39.6		5.6		1.1		—		—		46.3
2019	74.9		8.0		1.6		—		—		84.5
Other interest expense
2021	$	63.8	$	3.3	$	1.5	$	—	$	—	$	68.6
2020	105.9		3.7		1.4		—		—		111.0
2019	118.4		3.2		2.6		—		—		124.2
Depreciation
2021	$	108.7	$	7.9	$	4.9	$	—	$	—	$	121.5
2020	103.8		6.4		5.3		—		—		115.5
2019	99.1		5.5		5.0		—		—		109.6
Equity in earnings of affiliates
2021	$	8.2	$	—	$	—	$	366.3	$	—	$	374.5
2020	4.4		—		—		164.6		—		169.0
2019	5.2		—		—		142.3		—		147.5
Adjusted segment income
2021	$	1,046.6	$	160.3	$	34.5	$	366.3	$	—	$	1,607.7
2020	443.4		78.2		21.4		164.6		—		707.6
2019	339.9		86.5		22.8		142.3		—		591.5

Total assets, equity method investments, and capital expenditures by reportable segment are as set forth in the table below:

	Retail Automotive		Retail Commercial Truck		Other		Non-Automotive Investments		Intersegment Elimination		Total
Total assets
2021	$	9,940.4	$	1,269.4	$	607.4	$	1,647.4	$	—	$	13,464.6
2020	10,352.8		839.1		632.2		1,423.1		—		13,247.2
Equity method investments
2021	$	40.7	$	—	$	—	$	1,647.4	$	—	$	1,688.1
2020	77.2		—		—		1,423.1		—		1,500.3
Capital expenditures
2021	$	239.4	$	6.3	$	3.2	$	—	$	—	$	248.9
2020	175.6		7.2		3.1		—		—		185.9
2019	231.9		9.9		3.5		—		—		245.3

The following table presents revenue and long-lived assets (all non-current assets except goodwill, other indefinite-lived intangible assets, and operating lease right-of-use assets) by geographic area:

	Year Ended December 31,
	2021		2020		2019
Revenue from external customers:
U.S.	$	15,275.9	$	12,105.1	$	13,511.8
Non-U.S.	10,278.8		8,338.8		9,667.6
Total revenue from external customers	$	25,554.7	$	20,443.9	$	23,179.4
Long-lived assets, net:
U.S.	$	2,967.7	$	2,605.1
Non-U.S.	1,204.5		1,325.0
Total long-lived assets	$	4,172.2	$	3,930.1

The Company’s non-U.S. operations are predominantly based in the U.K.