XML 37 R23.htm IDEA: XBRL DOCUMENT v3.22.4
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
As of December 31, 2022, Sonic had three operating segments: (1) the Franchised Dealerships Segment; (2) the EchoPark Segment; and (3) the Powersports Segment. Refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” for additional discussion of our operating segments. Sonic has determined that its operating segments also represent its reportable segments.
The reportable segments identified above are the business activities of Sonic for which discrete financial information is available and for which operating results are regularly reviewed by Sonic’s chief operating decision maker to assess operating performance and allocate resources. Sonic’s chief operating decision maker is a group of three individuals consisting of: (1) the Company’s Chief Executive Officer; (2) the Company’s President; and (3) the Company’s Chief Financial Officer.
Reportable segment financial information for the three years ended December 31, 2022 were as follows:
Year Ended December 31,
202220212020
Segment Revenues:(In millions)
Franchised Dealerships Segment Revenues:
Retail new vehicles$5,581.6 $4,984.4 $4,224.4 
Fleet new vehicles99.4 124.6 56.8 
Total new vehicles$5,681.0 $5,109.0 $4,281.2 
Used vehicles3,391.5 2,901.0 2,345.9 
Wholesale vehicles314.0 257.2 168.7 
Parts, service and collision repair1,588.0 1,340.4 1,194.4 
Finance, insurance and other, net510.1 443.5 357.8 
Franchised Dealerships Segment revenues$11,484.6 $10,051.1 $8,348.0 
EchoPark Segment Revenues:
Retail new vehicles$9.2 $9.0 $— 
Used vehicles2,116.8 2,032.6 1,258.2 
Wholesale vehicles170.6 110.0 28.7 
Finance, insurance and other, net166.4 193.7 132.1 
EchoPark Segment revenues$2,463.0 $2,345.3 $1,419.0 
Powersports Segment Revenues:
Retail new vehicles$31.8 $— $— 
Used vehicles7.1 — — 
Wholesale vehicles0.3 — — 
Parts, service and collision repair11.7 — — 
Finance, insurance and other, net2.6 — — 
Powersports Segment revenues$53.5 $— $— 
Total consolidated revenues$14,001.1 $12,396.4 $9,767.0 
Year Ended December 31,
202220212020
Segment Income (Loss) (1):(In millions)
Franchised Dealerships Segment (2)$641.6 $530.3 $231.2 
EchoPark Segment (3)(133.9)(72.0)4.0 
Powersports Segment2.7 — — 
Total segment income (loss)$510.4 $458.3 $235.2 
Impairment charges (4)(320.4)(0.1)(270.0)
Income (loss) from continuing operations before taxes$190.0 $458.2 $(34.8)

(1)Segment income (loss) for each segment is defined as income (loss) from continuing operations before taxes and impairment charges.
(2)For the year ended December 31, 2022, amount includes approximately $9.1 million of pre-tax net gain on disposal of property, plant, and equipment, partially offset by an approximately $4.4 million pre-tax net loss on long-term compensation-related expenses. For the year ended December 31, 2021, amount includes approximately $15.5 million of pre-tax net loss on the extinguishment of debt, and approximately $3.0 million of pre-tax net loss on the acquisition of franchised dealerships, partially offset by approximately $1.8 million of pre-tax net gain on the disposal of franchised dealerships. For the year ended December 31, 2020, amount includes approximately $4.0 million of pre-tax net gain on the disposal of franchised dealerships.
(3)For the year ended December 31, 2021, amount includes approximately $6.5 million of long-term compensation-related expenses. For the year ended December 31, 2020, amount includes approximately $5.2 million of pre-tax net gain on the disposal of land and buildings at former EchoPark locations.
(4)For the year ended December 31, 2022, amount includes approximately $115.5 million of pre-tax franchise asset and property and equipment impairment charges for the Franchised Dealerships Segment and $204.9 million of pre-tax goodwill and franchise asset impairment charges for the EchoPark Segment. For the year ended December 31, 2021, amount includes approximately $0.1 million of pre-tax property and equipment impairment charges for the EchoPark Segment. For the year ended December 31, 2020, amount includes approximately $270.0 million of pre-tax goodwill and property and equipment impairment charges for the Franchised Dealerships Segment.
Year Ended December 31,
202220212020
(In millions)
Impairment charges:
Franchised Dealerships Segment$115.5 $— $270.0 
EchoPark Segment204.9 0.1 — 
Powersports Segment— — — 
Total impairment charges$320.4 $0.1 $270.0 

Year Ended December 31,
202220212020
(In millions)
Depreciation and amortization:
Franchised Dealerships Segment$101.8 $84.8 $79.9 
EchoPark Segment24.7 16.3 11.1 
Powersports Segment1.0 — — 
Total depreciation and amortization$127.5 $101.1 $91.0 

Year Ended December 31,
202220212020
(In millions)
Floor plan interest expense:
Franchised Dealerships Segment$23.6 $11.8 $24.0 
EchoPark Segment10.7 4.9 3.2 
Powersports Segment— — — 
Total floor plan interest expense$34.3 $16.7 $27.2 

Year Ended December 31,
202220212020
(In millions)
Interest expense, other, net:
Franchised Dealerships Segment$85.0 $46.3 $40.7 
EchoPark Segment3.9 1.7 0.9 
Powersports Segment1.0 — — 
Total interest expense, other, net$89.9 $48.0 $41.6 
Year Ended December 31,
202220212020
(In millions)
Capital expenditures:
Franchised Dealerships Segment$130.3 $204.6 $92.3 
EchoPark Segment96.6 93.6 34.9 
Powersports Segment0.2 — — 
Total capital expenditures$227.1 $298.2 $127.2 
 
December 31,
20222021
(In millions)
Assets:
Franchised Dealerships Segment$4,363.7 $3,934.9 
EchoPark Segment267.6 740.6 
Powersports Segment117.8 — 
Corporate and other:
Cash and cash equivalents229.2 299.4 
Other corporate assets— 0.2 
Total assets$4,978.3 $4,975.1