QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||||||||
(Address of principal executive offices) | (Zip Code) |
Trading | ||||||||||||||
Title of each class | Symbol(s) | Name of each exchange on which registered | ||||||||||||
☒ | Accelerated Filer | ☐ | ||||||||||||
Non-Accelerated Filer | ☐ | Smaller Reporting Company | ||||||||||||
Emerging Growth Company |
Page | ||||||||
PART I—Financial Information | ||||||||
PART II—Other Information | ||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
ASSETS | |||||||||||
CURRENT ASSETS: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Contracts-in-transit, net | |||||||||||
Accounts receivable, net | |||||||||||
Inventories, net | |||||||||||
Assets held for sale | |||||||||||
Other current assets | |||||||||||
Total current assets | |||||||||||
INVESTMENTS | |||||||||||
PROPERTY AND EQUIPMENT, net | |||||||||||
OPERATING LEASE RIGHT-OF-USE ASSETS | |||||||||||
GOODWILL | |||||||||||
INTANGIBLE FRANCHISE RIGHTS | |||||||||||
OTHER LONG-TERM ASSETS | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
CURRENT LIABILITIES: | |||||||||||
Floor plan notes payable—trade, net | $ | $ | |||||||||
Floor plan notes payable—non-trade, net | |||||||||||
Current maturities of long-term debt | |||||||||||
Current maturities of operating leases | |||||||||||
Accounts payable and accrued liabilities | |||||||||||
Deferred revenue—current | |||||||||||
Liabilities associated with assets held for sale | |||||||||||
Total current liabilities | |||||||||||
LONG-TERM DEBT | |||||||||||
LONG-TERM LEASE LIABILITY | |||||||||||
DEFERRED REVENUE | |||||||||||
DEFERRED INCOME TAXES | |||||||||||
OTHER LONG-TERM LIABILITIES | |||||||||||
COMMITMENTS AND CONTINGENCIES (Note 13) | |||||||||||
SHAREHOLDERS' EQUITY: | |||||||||||
Preferred stock, $ or outstanding | |||||||||||
Common stock, $ | |||||||||||
Additional paid-in capital | |||||||||||
Retained earnings | |||||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Accumulated other comprehensive income | |||||||||||
Total shareholders' equity | |||||||||||
Total liabilities and shareholders' equity | $ | $ |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
REVENUE: | |||||||||||||||||||||||
New vehicle | $ | $ | $ | $ | |||||||||||||||||||
Used vehicle | |||||||||||||||||||||||
Parts and service | |||||||||||||||||||||||
Finance and insurance, net | |||||||||||||||||||||||
TOTAL REVENUE | |||||||||||||||||||||||
COST OF SALES: | |||||||||||||||||||||||
New vehicle | |||||||||||||||||||||||
Used vehicle | |||||||||||||||||||||||
Parts and service | |||||||||||||||||||||||
Finance and insurance | |||||||||||||||||||||||
TOTAL COST OF SALES | |||||||||||||||||||||||
GROSS PROFIT | |||||||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||
Selling, general, and administrative | |||||||||||||||||||||||
Depreciation and amortization | |||||||||||||||||||||||
Other operating expense (income), net | ( | ||||||||||||||||||||||
INCOME FROM OPERATIONS | |||||||||||||||||||||||
OTHER EXPENSES: | |||||||||||||||||||||||
Floor plan interest expense | |||||||||||||||||||||||
Other interest expense, net | |||||||||||||||||||||||
(Gain) loss on dealership divestitures, net | ( | ( | ( | ||||||||||||||||||||
Total other expenses, net | |||||||||||||||||||||||
INCOME BEFORE INCOME TAXES | |||||||||||||||||||||||
Income tax expense | |||||||||||||||||||||||
NET INCOME | $ | $ | $ | $ | |||||||||||||||||||
EARNINGS PER SHARE: | |||||||||||||||||||||||
Basic— | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Diluted— | |||||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
WEIGHTED AVERAGE SHARES OUTSTANDING: | |||||||||||||||||||||||
Basic | |||||||||||||||||||||||
Performance share units | |||||||||||||||||||||||
Diluted |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Net income | $ | $ | $ | $ | |||||||||||||||||||
Other comprehensive income: | |||||||||||||||||||||||
Change in fair value of cash flow swaps | ( | ||||||||||||||||||||||
Income tax (expense) benefit associated with cash flow swaps | ( | ( | ( | ||||||||||||||||||||
Losses on available-for-sale debt securities | ( | ( | ( | ||||||||||||||||||||
Income tax benefit associated with available-for-sale debt securities | |||||||||||||||||||||||
Comprehensive income | $ | $ | $ | $ |
Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Change in fair value of cash flow swaps, net of reclassification adjustment and $ | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Unrealized gain on changes in fair value of debt securities, net of reclassification adjustment and $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | ( | |||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures, in connection with share-based payment arrangements | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share repurchases | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock associated with net share settlement of employee share-based awards | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Retirement of common stock | ( | — | ( | ( | ( | — | |||||||||||||||||||||||||||||||||||||||||
Balances, March 31, 2023 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Change in fair value of cash flow swaps, net of reclassification adjustment and $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Unrealized loss on changes in fair value of debt securities, net of reclassification adjustment and $ | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures in connection with share-based payment arrangements | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Share repurchases | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock associated with net share settlement of employee share-based awards | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Retirement of common stock | ( | — | ( | ( | ( | — | |||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2023 | $ | $ | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total | ||||||||||||||||||||||||||||||||||||||||||
Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||
Balances, December 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||||||||||||||||||||||||||
Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Change in fair value of cash flow swaps, net of reclassification adjustment and $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Unrealized loss on changes in fair value of debt securities, net of reclassification adjustment and $ | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures, in connection with share-based payment arrangements | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Share repurchases | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock associated with net share settlements of employee share-based awards | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Retirement of common stock | ( | — | ( | ( | ( | — | |||||||||||||||||||||||||||||||||||||||||
Balances, March 31, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Comprehensive Income: | |||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Change in fair value of cash flow swaps, net of reclassification adjustment and $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Unrealized gain on changes in fair value of debt securities, net of reclassification adjustment $ | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Share-based compensation | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures, in connection with share-based payment arrangements | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock associated with net share settlements of employee share-based awards | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||||||||
Balances, June 30, 2022 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||||||||||||||||||||||||||
For the Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
CASH FLOW FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | $ | |||||||||
Adjustments to reconcile net income to net cash provided by operating activities— | |||||||||||
Depreciation and amortization | |||||||||||
Share-based compensation | |||||||||||
Deferred income taxes | ( | ||||||||||
Unrealized (gains) losses on investments | ( | ||||||||||
Loaner vehicle amortization | |||||||||||
Gain on divestitures, net | ( | ( | |||||||||
Change in right-of-use assets | |||||||||||
Other adjustments, net | |||||||||||
Changes in operating assets and liabilities, net of acquisitions and divestitures— | |||||||||||
Contracts-in-transit | ( | ||||||||||
Accounts receivable | ( | ||||||||||
Inventories | ( | ||||||||||
Other current assets | ( | ( | |||||||||
Floor plan notes payable—trade, net | ( | ( | |||||||||
Deferred revenue | |||||||||||
Accounts payable and accrued liabilities | |||||||||||
Operating lease liabilities | ( | ( | |||||||||
Other long-term assets and liabilities, net | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOW FROM INVESTING ACTIVITIES: | |||||||||||
Capital expenditures—excluding real estate | ( | ( | |||||||||
Divestitures | |||||||||||
Purchases of debt securities—available-for-sale | ( | ( | |||||||||
Purchases of equity securities | ( | ||||||||||
Proceeds from the sale of debt securities—available-for-sale | |||||||||||
Proceeds from the sale of equity securities | |||||||||||
Proceeds from the sale of assets | |||||||||||
Net cash (used in) provided by investing activities | ( | ||||||||||
CASH FLOW FROM FINANCING ACTIVITIES: | |||||||||||
Floor plan borrowings—non-trade | |||||||||||
Floor plan repayments—non-trade | ( | ( | |||||||||
Floor plan repayments—divestitures | ( | ||||||||||
Repayments of borrowings | ( | ( | |||||||||
Proceeds from revolving credit facility | |||||||||||
Repayments of revolving credit facility | ( | ||||||||||
Proceeds from issuance of common stock | |||||||||||
Payment of debt issuance costs | ( | ||||||||||
Purchases of treasury stock | ( | ( | |||||||||
Repurchases of common stock, including amounts associated with net share settlements of employee share-based awards | ( | ( | |||||||||
Net cash used in financing activities | ( | ( | |||||||||
Net decrease in cash and cash equivalents | ( | ( | |||||||||
CASH AND CASH EQUIVALENTS, beginning of period | |||||||||||
CASH AND CASH EQUIVALENTS, end of period | $ | $ |
For the Three Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
(In millions) | |||||||||||
Revenue: | |||||||||||
New vehicle | $ | $ | |||||||||
Used vehicle retail | |||||||||||
Used vehicle wholesale | |||||||||||
New and used vehicle | |||||||||||
Sale of vehicle parts and accessories | |||||||||||
Vehicle repair and maintenance services | |||||||||||
Parts and services | |||||||||||
Finance and insurance, net | |||||||||||
Total revenue | $ | $ |
For the Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
(In millions) | |||||||||||
Revenue: | |||||||||||
New vehicle | $ | $ | |||||||||
Used vehicle retail | |||||||||||
Used vehicle wholesale | |||||||||||
New and used vehicle | |||||||||||
Sale of vehicle parts and accessories | |||||||||||
Vehicle repair and maintenance services | |||||||||||
Parts and service | |||||||||||
Finance and insurance, net | |||||||||||
Total revenue | $ | $ |
Vehicle Repair and Maintenance Services | Finance and Insurance, net | Deferred Sales Commissions | Total | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Balance as of January 1, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Transferred to receivables from contract assets recognized at the beginning of the period | ( | ( | ( | ||||||||||||||||||||
Amortization of costs to obtain a contract with a customer | ( | ( | |||||||||||||||||||||
Costs incurred to obtain a contract with a customer | |||||||||||||||||||||||
Increases related to revenue recognized, inclusive of adjustments to constraint, during the period | |||||||||||||||||||||||
Balance as of March 31, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Contract Assets (current), March 31, 2023 | |||||||||||||||||||||||
Contract Assets (long-term), March 31, 2023 | |||||||||||||||||||||||
Transferred to receivables from contract assets recognized at the beginning of the period | ( | ( | ( | ||||||||||||||||||||
Amortization of costs to obtain a contract with a customer | ( | ( | |||||||||||||||||||||
Costs incurred to obtain a contract with a customer | |||||||||||||||||||||||
Increases related to revenue recognized, inclusive of adjustments to constraint, during the period | |||||||||||||||||||||||
Balance as of June 30, 2023 | $ | $ | $ | $ | |||||||||||||||||||
Contract Assets (current), June 30, 2023 | |||||||||||||||||||||||
Contract Assets (long-term), June 30, 2023 | |||||||||||||||||||||||
As of | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(In millions) | |||||||||||
Vehicle receivables | $ | $ | |||||||||
Manufacturer receivables | |||||||||||
Other receivables | |||||||||||
Total accounts receivable | |||||||||||
Less—Allowance for credit losses | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
As of | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(In millions) | |||||||||||
New vehicles | $ | $ | |||||||||
Used vehicles | |||||||||||
Parts and accessories | |||||||||||
Total inventories, net (a) | $ | $ |
As of | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(In millions) | |||||||||||
Assets: | |||||||||||
Inventory | $ | $ | |||||||||
Loaners, net | |||||||||||
Property and equipment, net | |||||||||||
Operating lease right-of-use assets | |||||||||||
Goodwill | |||||||||||
Total assets held for sale | |||||||||||
Liabilities: | |||||||||||
Floor plan notes payable—non-trade | |||||||||||
Loaners notes payable | |||||||||||
Current maturities of long-term debt | |||||||||||
Long-term debt | |||||||||||
Operating lease liabilities | |||||||||||
Total liabilities associated with assets held for sale | |||||||||||
Net assets held for sale | $ | $ |
As of June 30, 2023 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Short-term investments | $ | $ | $ | $ | |||||||||||||||||||
U.S. Treasury | ( | ||||||||||||||||||||||
Municipal | ( | ||||||||||||||||||||||
Corporate | ( | ||||||||||||||||||||||
Mortgage and other asset-backed securities | ( | ||||||||||||||||||||||
Total debt securities | ( | ||||||||||||||||||||||
Total investments | $ | $ | $ | ( | $ |
As of December 31, 2022 | |||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Short-term investments | $ | $ | $ | $ | |||||||||||||||||||
U.S. Treasury | ( | ||||||||||||||||||||||
Municipal | ( | ||||||||||||||||||||||
Corporate | ( | ||||||||||||||||||||||
Mortgage and other asset-backed securities | ( | ||||||||||||||||||||||
Total debt securities | ( | ||||||||||||||||||||||
Common stock | |||||||||||||||||||||||
Total investments | $ | $ | $ | ( | $ |
As of June 30, 2023 | |||||||||||
Amortized Cost | Fair Value | ||||||||||
(In millions) | |||||||||||
Due in 1 year or less | $ | $ | |||||||||
Due in 1-5 years | |||||||||||
Due in 6-10 years | |||||||||||
Due after 10 years | |||||||||||
Total by maturity | |||||||||||
Mortgage and other asset-backed securities | |||||||||||
Total investment securities | $ | $ |
As of June 30, 2023 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
Short-term investments | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||
U.S. Treasury | |||||||||||||||||||||||||||||||||||
Municipal | |||||||||||||||||||||||||||||||||||
Corporate | |||||||||||||||||||||||||||||||||||
Mortgage and other asset-backed securities | |||||||||||||||||||||||||||||||||||
Total debt securities | $ | $ | $ | $ | $ | $ |
As of December 31, 2022 | |||||||||||||||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | |||||||||||||||||||||||||||||||||
Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | Fair Value | Unrealized Losses | ||||||||||||||||||||||||||||||
(In millions) | |||||||||||||||||||||||||||||||||||
U.S. Treasury | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Municipal | ( | ( | |||||||||||||||||||||||||||||||||
Corporate | ( | ( | ( | ||||||||||||||||||||||||||||||||
Mortgage and other asset-backed securities | ( | ( | ( | ||||||||||||||||||||||||||||||||
Total debt securities | $ | $ | ( | $ | $ | ( | $ | $ | ( |
As of | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(In millions) | |||||||||||
Floor plan notes payable—trade | $ | $ | |||||||||
Floor plan notes payable offset account | ( | ( | |||||||||
Floor plan notes payable—trade, net | $ | $ | |||||||||
Floor plan notes payable—new non-trade (a) | $ | $ | |||||||||
Floor plan notes payable offset account (b) | ( | ( | |||||||||
Floor plan notes payable—non-trade, net | $ | $ |
As of | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(In millions) | |||||||||||
$ | $ | ||||||||||
Mortgage notes payable bearing interest at fixed rates (a) | |||||||||||
2021 Real Estate Facility (b) | |||||||||||
2021 BofA Real Estate Facility | |||||||||||
2018 Bank of America Facility (c) | |||||||||||
2018 Wells Fargo Master Loan Facility | |||||||||||
2013 BofA Real Estate Facility | |||||||||||
2015 Wells Fargo Master Loan Facility | |||||||||||
Finance lease liability | |||||||||||
Total debt outstanding | |||||||||||
Add—unamortized premium on | |||||||||||
Add—unamortized premium on | |||||||||||
Less—debt issuance costs | ( | ( | |||||||||
Long-term debt, including current portion | |||||||||||
Less—current portion, net of current portion of debt issuance costs | ( | ( | |||||||||
Long-term debt | $ | $ |
As of | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(In millions) | |||||||||||
Carrying Value: | |||||||||||
$ | $ | ||||||||||
Mortgage notes payable (a) | |||||||||||
Total carrying value | $ | $ | |||||||||
Fair Value: | |||||||||||
$ | $ | ||||||||||
Mortgage notes payable (a) | |||||||||||
Total fair value | $ | $ |
Inception Date | Notional Principal at Inception | Notional Value as of June 30, 2023 | Notional Principal at Maturity | Maturity Date | ||||||||||||||||||||||
(In millions) | ||||||||||||||||||||||||||
January 2022 | $ | $ | $ | December 2026 | ||||||||||||||||||||||
January 2022 | $ | $ | $ | December 2031 | ||||||||||||||||||||||
May 2021 | $ | $ | $ | May 2031 | ||||||||||||||||||||||
July 2020 | $ | $ | $ | December 2028 | ||||||||||||||||||||||
July 2020 | $ | $ | $ | November 2025 | ||||||||||||||||||||||
June 2015 | $ | $ | $ | February 2025 | ||||||||||||||||||||||
November 2013 | $ | $ | $ | September 2023 |
As of | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(In millions) | |||||||||||
Other current assets | $ | $ | |||||||||
Other long-term assets | |||||||||||
Total fair value | $ | $ |
For the Three Months Ended June 30, | Results Recognized in Accumulated Other Comprehensive Income/(Loss) | Location of Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | |||||||||||||||||
2023 | $ | Other interest expense, net | $ | ( | ||||||||||||||||
2022 | $ | Other interest expense, net | $ |
For the Six Months Ended June 30, | Results Recognized in Accumulated Other Comprehensive Income/(Loss) | Location of Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | |||||||||||||||||
2023 | $ | ( | Other interest expense, net | $ | ( | |||||||||||||||
2022 | $ | Other interest expense, net | $ |
As of June 30, 2023 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
U.S. Treasury | |||||||||||||||||||||||
Municipal | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Mortgage and other asset-backed securities | |||||||||||||||||||||||
Total debt securities | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
As of December 31, 2022 | |||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Cash equivalents | $ | $ | $ | $ | |||||||||||||||||||
Short-term investments | |||||||||||||||||||||||
U.S. Treasury | |||||||||||||||||||||||
Municipal | |||||||||||||||||||||||
Corporate | |||||||||||||||||||||||
Mortgage and other asset-backed securities | |||||||||||||||||||||||
Total debt securities | |||||||||||||||||||||||
Common stock | |||||||||||||||||||||||
Total | $ | $ | $ | $ | |||||||||||||||||||
For the Three Months Ended June 30, | Results Recognized in Accumulated Other Comprehensive Income/(Loss) | Location of Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | |||||||||||||||||
2023 | $ | ( | Revenue-Finance and Insurance, net | $ | ||||||||||||||||
2022 | $ | ( | Revenue-Finance and Insurance, net | $ | ( |
For the Six Months Ended June 30, | Results Recognized in Accumulated Other Comprehensive Income/(Loss) | Location of Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | |||||||||||||||||
2023 | $ | ( | Revenue-Finance and Insurance, net | $ | ||||||||||||||||
2022 | $ | ( | Revenue-Finance and Insurance, net | $ | ( |
Three Months Ended June 30, 2023 | |||||||||||||||||||||||
Dealerships | TCA | Eliminations | Total Company | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Revenue | $ | $ | $ | ( | $ | ||||||||||||||||||
Gross profit | $ | $ | $ | $ |
Three Months Ended June 30, 2022 | |||||||||||||||||||||||
Dealerships | TCA | Eliminations | Total Company | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Revenue | $ | $ | $ | ( | $ | ||||||||||||||||||
Gross profit | $ | $ | $ | $ |
Six Months Ended June 30, 2023 | |||||||||||||||||||||||
Dealerships | TCA | Eliminations | Total Company | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Revenue | $ | $ | $ | ( | $ | ||||||||||||||||||
Gross profit | $ | $ | $ | $ |
Six Months Ended June 30, 2022 | |||||||||||||||||||||||
Dealerships | TCA | Eliminations | Total Company | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Revenue | $ | $ | $ | ( | $ | ||||||||||||||||||
Gross profit | $ | $ | $ | $ |
As of June 30, 2023 | |||||||||||||||||||||||
Dealerships | TCA | Eliminations | Total Company | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Total assets | $ | $ | $ | $ |
As of December 31, 2022 | |||||||||||||||||||||||
Dealerships | TCA | Eliminations | Total Company | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||||
Total assets | $ | $ | $ | ( | $ |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||
REVENUE: | |||||||||||||||||||||||
New vehicle | $ | 1,942.7 | $ | 1,864.6 | $ | 78.2 | 4 | % | |||||||||||||||
Used vehicle | 1,107.3 | 1,362.4 | (255.1) | (19) | % | ||||||||||||||||||
Parts and service | 526.1 | 520.2 | 5.9 | 1 | % | ||||||||||||||||||
Finance and insurance, net | 166.3 | 203.0 | (36.6) | (18) | % | ||||||||||||||||||
TOTAL REVENUE | 3,742.5 | 3,950.1 | (207.6) | (5) | % | ||||||||||||||||||
GROSS PROFIT: | |||||||||||||||||||||||
New vehicle | 185.0 | 220.5 | (35.5) | (16) | % | ||||||||||||||||||
Used vehicle | 70.9 | 104.1 | (33.3) | (32) | % | ||||||||||||||||||
Parts and service | 292.0 | 290.5 | 1.6 | 1 | % | ||||||||||||||||||
Finance and insurance, net | 165.2 | 187.6 | (22.5) | (12) | % | ||||||||||||||||||
TOTAL GROSS PROFIT | 713.1 | 802.7 | (89.6) | (11) | % | ||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||
Selling, general, and administrative | 408.6 | 448.2 | (39.6) | (9) | % | ||||||||||||||||||
Depreciation and amortization | 16.8 | 18.1 | (1.4) | (8) | % | ||||||||||||||||||
Other operating expense, net | — | 0.8 | (0.8) | NM | |||||||||||||||||||
INCOME FROM OPERATIONS | 287.7 | 335.5 | (47.8) | (14) | % | ||||||||||||||||||
OTHER EXPENSES: | |||||||||||||||||||||||
Floor plan interest expense | 0.8 | 1.5 | (0.7) | (47) | % | ||||||||||||||||||
Other interest expense, net | 39.3 | 37.6 | 1.7 | 5 | % | ||||||||||||||||||
(Gain) loss on dealership divestitures, net | (13.5) | 28.7 | (42.2) | NM | |||||||||||||||||||
Total other expenses, net | 26.6 | 67.8 | (41.2) | (61) | % | ||||||||||||||||||
INCOME BEFORE INCOME TAXES | 261.1 | 267.7 | (6.6) | (2) | % | ||||||||||||||||||
Income tax expense | 64.8 | 66.4 | (1.6) | (2) | % | ||||||||||||||||||
NET INCOME | $ | 196.4 | $ | 201.4 | $ | (5.0) | (2) | % | |||||||||||||||
Net income per common share—Diluted | $ | 9.34 | $ | 9.07 | $ | 0.27 | 3 | % |
For the Three Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
REVENUE MIX PERCENTAGES: | |||||||||||
New vehicle | 51.9 | % | 47.2 | % | |||||||
Used vehicle retail | 27.1 | % | 32.2 | % | |||||||
Used vehicle wholesale | 2.5 | % | 2.3 | % | |||||||
Parts and service | 14.1 | % | 13.2 | % | |||||||
Finance and insurance, net | 4.4 | % | 5.1 | % | |||||||
Total revenue | 100.0 | % | 100.0 | % | |||||||
GROSS PROFIT MIX PERCENTAGES: | |||||||||||
New vehicle | 25.9 | % | 27.5 | % | |||||||
Used vehicle retail | 9.2 | % | 12.5 | % | |||||||
Used vehicle wholesale | 0.7 | % | 0.4 | % | |||||||
Parts and service | 41.0 | % | 36.2 | % | |||||||
Finance and insurance, net | 23.2 | % | 23.4 | % | |||||||
Total gross profit | 100.0 | % | 100.0 | % | |||||||
GROSS PROFIT MARGIN | 19.1 | % | 20.3 | % | |||||||
SG&A EXPENSE AS A PERCENTAGE OF GROSS PROFIT | 57.3 | % | 55.8 | % |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Luxury | $ | 630.6 | $ | 592.3 | $ | 38.4 | 6 | % | |||||||||||||||
Import | 768.0 | 719.5 | 48.6 | 7 | % | ||||||||||||||||||
Domestic | 544.0 | 552.8 | (8.8) | (2) | % | ||||||||||||||||||
Total new vehicle revenue | $ | 1,942.7 | $ | 1,864.6 | $ | 78.2 | 4 | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Luxury | $ | 69.5 | $ | 76.5 | $ | (7.0) | (9) | % | |||||||||||||||
Import | 72.3 | 87.8 | (15.5) | (18) | % | ||||||||||||||||||
Domestic | 43.2 | 56.2 | (13.0) | (23) | % | ||||||||||||||||||
Total new vehicle gross profit | $ | 185.0 | $ | 220.5 | $ | (35.5) | (16) | % | |||||||||||||||
New vehicle units: | |||||||||||||||||||||||
Luxury | 8,925 | 8,899 | 26 | — | % | ||||||||||||||||||
Import | 19,967 | 19,564 | 403 | 2 | % | ||||||||||||||||||
Domestic | 9,368 | 10,234 | (866) | (8) | % | ||||||||||||||||||
Total new vehicle units | 38,260 | 38,697 | (437) | (1) | % | ||||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Luxury | $ | 626.3 | $ | 567.9 | $ | 58.4 | 10 | % | |||||||||||||||
Import | 768.0 | 693.5 | 74.5 | 11 | % | ||||||||||||||||||
Domestic | 544.0 | 536.6 | 7.5 | 1 | % | ||||||||||||||||||
Total new vehicle revenue | $ | 1,938.4 | $ | 1,798.0 | $ | 140.4 | 8 | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Luxury | $ | 68.9 | $ | 73.8 | $ | (4.8) | (7) | % | |||||||||||||||
Import | 72.3 | 85.1 | (12.7) | (15) | % | ||||||||||||||||||
Domestic | 43.2 | 54.5 | (11.3) | (21) | % | ||||||||||||||||||
Total new vehicle gross profit | $ | 184.5 | $ | 213.3 | $ | (28.9) | (14) | % | |||||||||||||||
New vehicle units | |||||||||||||||||||||||
Luxury | 8,845 | 8,505 | 340 | 4 | % | ||||||||||||||||||
Import | 19,967 | 18,828 | 1,139 | 6 | % | ||||||||||||||||||
Domestic | 9,368 | 9,896 | (528) | (5) | % | ||||||||||||||||||
Total new vehicle units | 38,180 | 37,229 | 951 | 3 | % |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue per new vehicle sold | $ | 50,776 | $ | 48,183 | $ | 2,593 | 5 | % | |||||||||||||||
Gross profit per new vehicle sold | $ | 4,835 | $ | 5,697 | $ | (862) | (15) | % | |||||||||||||||
New vehicle gross margin | 9.5 | % | 11.8 | % | (2.3) | % | |||||||||||||||||
Luxury: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 7,785 | $ | 8,594 | $ | (809) | (9) | % | |||||||||||||||
New vehicle gross margin | 11.0 | % | 12.9 | % | (1.9) | % | |||||||||||||||||
Import: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 3,622 | $ | 4,489 | $ | (868) | (19) | % | |||||||||||||||
New vehicle gross margin | 9.4 | % | 12.2 | % | (2.8) | % | |||||||||||||||||
Domestic: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 4,612 | $ | 5,488 | $ | (876) | (16) | % | |||||||||||||||
New vehicle gross margin | 7.9 | % | 10.2 | % | (2.2) | % | |||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue per new vehicle sold | $ | 50,769 | $ | 48,295 | $ | 2,475 | 5 | % | |||||||||||||||
Gross profit per new vehicle sold | $ | 4,832 | $ | 5,731 | $ | (899) | (16) | % | |||||||||||||||
New vehicle gross margin | 9.5 | % | 11.9 | % | (2.3) | % | |||||||||||||||||
Luxury: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 7,795 | $ | 8,672 | $ | (878) | (10) | % | |||||||||||||||
New vehicle gross margin | 11.0 | % | 13.0 | % | (2.0) | % | |||||||||||||||||
Import: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 3,622 | $ | 4,518 | $ | (896) | (20) | % | |||||||||||||||
New vehicle gross margin | 9.4 | % | 12.3 | % | (2.8) | % | |||||||||||||||||
Domestic: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 4,613 | $ | 5,510 | $ | (897) | (16) | % | |||||||||||||||
New vehicle gross margin | 7.9 | % | 10.2 | % | (2.2) | % |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Used vehicle retail revenue | $ | 1,013.3 | $ | 1,272.7 | $ | (259.4) | (20) | % | |||||||||||||||
Used vehicle wholesale revenue | 94.0 | 89.7 | 4.3 | 5 | % | ||||||||||||||||||
Used vehicle revenue | $ | 1,107.3 | $ | 1,362.4 | $ | (255.1) | (19) | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Used vehicle retail gross profit | $ | 65.8 | $ | 100.7 | $ | (34.9) | (35) | % | |||||||||||||||
Used vehicle wholesale gross profit | 5.1 | 3.4 | 1.6 | 47 | % | ||||||||||||||||||
Used vehicle gross profit | $ | 70.9 | $ | 104.1 | $ | (33.3) | (32) | % | |||||||||||||||
Used vehicle retail units: | |||||||||||||||||||||||
Used vehicle retail units | 31,623 | 39,848 | (8,225) | (21) | % | ||||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Used vehicle retail revenue | $ | 1,010.4 | $ | 1,195.7 | $ | (185.2) | (15) | % | |||||||||||||||
Used vehicle wholesale revenue | 93.7 | 86.1 | 7.5 | 9 | % | ||||||||||||||||||
Used vehicle revenue | $ | 1,104.1 | $ | 1,281.8 | $ | (177.7) | (14) | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Used vehicle retail gross profit | $ | 65.7 | $ | 95.0 | $ | (29.3) | (31) | % | |||||||||||||||
Used vehicle wholesale gross profit | 5.1 | 3.4 | 1.6 | 47 | % | ||||||||||||||||||
Used vehicle gross profit | $ | 70.7 | $ | 98.4 | $ | (27.7) | (28) | % | |||||||||||||||
Used vehicle retail units: | |||||||||||||||||||||||
Used vehicle retail units | 31,505 | 37,020 | (5,515) | (15) | % |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue per used vehicle retailed | $ | 32,044 | $ | 31,939 | $ | 104 | — | % | |||||||||||||||
Gross profit per used vehicle retailed | $ | 2,081 | $ | 2,527 | $ | (446) | (18) | % | |||||||||||||||
Used vehicle retail gross margin | 6.5 | % | 7.9 | % | (1.4) | % | |||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue per used vehicle retailed | $ | 32,073 | $ | 32,298 | $ | (226) | (1) | % | |||||||||||||||
Gross profit per used vehicle retailed | $ | 2,085 | $ | 2,566 | $ | (482) | (19) | % | |||||||||||||||
Used vehicle retail gross margin | 6.5 | % | 7.9 | % | (1.4) | % |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Parts and service revenue | $ | 526.1 | $ | 520.2 | $ | 5.9 | 1 | % | |||||||||||||||
Parts and service gross profit: | |||||||||||||||||||||||
Customer pay | $ | 182.1 | $ | 180.7 | $ | 1.5 | 1 | % | |||||||||||||||
Warranty | 36.4 | 33.5 | 3.0 | 9 | % | ||||||||||||||||||
Wholesale parts | 19.5 | 19.6 | (0.1) | — | % | ||||||||||||||||||
Parts and service gross profit, excluding reconditioning and preparation | $ | 238.0 | $ | 233.7 | $ | 4.4 | 2 | % | |||||||||||||||
Parts and service gross margin, excluding reconditioning and preparation | 45.2 | % | 44.9 | % | 0.3 | % | |||||||||||||||||
Reconditioning and preparation * | $ | 54.0 | $ | 56.8 | $ | (2.8) | (5) | % | |||||||||||||||
Total parts and service gross profit | $ | 292.0 | $ | 290.5 | $ | 1.6 | 1 | % | |||||||||||||||
Total parts and service gross margin | 55.5 | % | 55.8 | % | (0.3) | % | |||||||||||||||||
Same Store: | |||||||||||||||||||||||
Parts and service revenue | $ | 525.3 | $ | 494.5 | $ | 30.8 | 6 | % | |||||||||||||||
Parts and service gross profit: | |||||||||||||||||||||||
Customer pay | $ | 181.8 | $ | 171.0 | $ | 10.8 | 6 | % | |||||||||||||||
Warranty | 36.4 | 32.2 | 4.2 | 13 | % | ||||||||||||||||||
Wholesale parts | 19.5 | 18.9 | 0.6 | 3 | % | ||||||||||||||||||
Parts and service gross profit, excluding reconditioning and preparation | $ | 237.7 | $ | 222.0 | $ | 15.6 | 7 | % | |||||||||||||||
Parts and service gross margin, excluding reconditioning and preparation | 45.2 | % | 23.3 | % | 22.0 | % | |||||||||||||||||
Reconditioning and preparation * | $ | 53.9 | $ | 53.3 | $ | 0.6 | 1 | % | |||||||||||||||
Total parts and service gross profit | $ | 291.5 | $ | 275.3 | $ | 16.2 | 6 | % | |||||||||||||||
Total parts and service gross margin | 55.5 | % | 55.7 | % | (0.2) | % |
For the Three Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Finance and insurance, net revenue | $ | 166.3 | $ | 203.0 | $ | (36.6) | (18) | % | |||||||||||||||
Finance and insurance, net gross profit | $ | 165.2 | $ | 187.6 | $ | (22.5) | (12) | % | |||||||||||||||
Finance and insurance, net per vehicle sold | $ | 2,363 | $ | 2,389 | $ | (25) | (1) | % | |||||||||||||||
Same Store: | |||||||||||||||||||||||
Finance and insurance, net revenue | $ | 166.3 | $ | 193.4 | $ | (27.2) | (14) | % | |||||||||||||||
Finance and insurance, net gross profit | $ | 165.1 | $ | 179.0 | $ | (13.9) | (8) | % | |||||||||||||||
Finance and insurance, net per vehicle sold | $ | 2,369 | $ | 2,411 | $ | (42) | (2) | % |
For the Three Months Ended June 30, | Increase (Decrease) | % of Gross Profit Increase (Decrease) | |||||||||||||||||||||||||||||||||
2023 | % of Gross Profit | 2022 | % of Gross Profit | ||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||||||||||||||
Personnel costs | $ | 274.3 | 38.5 | % | $ | 323.1 | 40.3 | % | $ | (48.8) | (1.8) | % | |||||||||||||||||||||||
Rent and related expenses | 35.8 | 5.0 | % | 28.5 | 3.6 | % | 7.3 | 1.5 | % | ||||||||||||||||||||||||||
Advertising | 11.5 | 1.6 | % | 14.2 | 1.8 | % | (2.6) | (0.1) | % | ||||||||||||||||||||||||||
Other | 86.9 | 12.2 | % | 82.4 | 10.3 | % | 4.5 | 1.9 | % | ||||||||||||||||||||||||||
Selling, general, and administrative expense | $ | 408.6 | 57.3 | % | $ | 448.2 | 55.8 | % | $ | (39.6) | 1.5 | % | |||||||||||||||||||||||
Gross profit | $ | 713.1 | $ | 802.7 | |||||||||||||||||||||||||||||||
Same Store: | |||||||||||||||||||||||||||||||||||
Personnel costs | $ | 273.8 | 38.5 | % | $ | 308.6 | 40.3 | % | $ | (34.8) | (1.8) | % | |||||||||||||||||||||||
Rent and related expenses | 35.7 | 5.0 | % | 27.3 | 3.6 | % | 8.4 | 1.5 | % | ||||||||||||||||||||||||||
Advertising | 11.4 | 1.6 | % | 12.8 | 1.7 | % | (1.3) | (0.1) | % | ||||||||||||||||||||||||||
Other | 86.5 | 12.2 | % | 79.5 | 10.4 | % | 7.0 | 1.8 | % | ||||||||||||||||||||||||||
Selling, general, and administrative expense | $ | 407.5 | 57.2 | % | $ | 428.2 | 55.9 | % | $ | (20.7) | 1.4 | % | |||||||||||||||||||||||
Gross profit | $ | 711.8 | $ | 766.1 |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in millions, except per share data) | |||||||||||||||||||||||
REVENUE: | |||||||||||||||||||||||
New vehicle | $ | 3,710.4 | $ | 3,720.1 | $ | (9.7) | — | % | |||||||||||||||
Used vehicle | 2,233.9 | 2,713.4 | (479.5) | (18) | % | ||||||||||||||||||
Parts and service | 1,041.7 | 1,022.1 | 19.6 | 2 | % | ||||||||||||||||||
Finance and insurance, net | 338.9 | 406.4 | (67.5) | (17) | % | ||||||||||||||||||
TOTAL REVENUE | 7,324.8 | 7,862.0 | (537.1) | (7) | % | ||||||||||||||||||
GROSS PROFIT: | |||||||||||||||||||||||
New vehicle | 363.9 | 444.4 | (80.6) | (18) | % | ||||||||||||||||||
Used vehicle | 147.9 | 203.4 | (55.5) | (27) | % | ||||||||||||||||||
Parts and service | 574.1 | 566.9 | 7.2 | 1 | % | ||||||||||||||||||
Finance and insurance, net | 323.4 | 379.9 | (56.5) | (15) | % | ||||||||||||||||||
TOTAL GROSS PROFIT | 1,409.3 | 1,594.7 | (185.4) | (12) | % | ||||||||||||||||||
OPERATING EXPENSES: | |||||||||||||||||||||||
Selling, general, and administrative | 811.6 | 903.7 | (92.1) | (10) | % | ||||||||||||||||||
Depreciation and amortization | 33.5 | 36.5 | (3.0) | (8) | % | ||||||||||||||||||
Other operating income, net | — | (1.9) | 1.9 | NM | |||||||||||||||||||
INCOME FROM OPERATIONS | 564.2 | 656.3 | (92.1) | (14) | % | ||||||||||||||||||
OTHER EXPENSES: | |||||||||||||||||||||||
Floor plan interest expense | 1.5 | 4.1 | (2.7) | (65) | % | ||||||||||||||||||
Other interest expense, net | 76.6 | 75.2 | 1.5 | 2 | % | ||||||||||||||||||
Gain on dealership divestitures, net | (13.5) | (4.4) | (9.1) | NM | |||||||||||||||||||
Total other expenses, net | 64.6 | 74.9 | (10.3) | (14) | % | ||||||||||||||||||
INCOME BEFORE INCOME TAXES | 499.6 | 581.4 | (81.8) | (14) | % | ||||||||||||||||||
Income tax expense | 121.9 | 142.3 | (20.4) | (14) | % | ||||||||||||||||||
NET INCOME | $ | 377.7 | $ | 439.1 | $ | (61.4) | (14) | % | |||||||||||||||
Net income per share—Diluted | $ | 17.70 | $ | 19.52 | $ | (1.81) | (9) | % |
For the Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
REVENUE MIX PERCENTAGES: | |||||||||||
New vehicle | 50.7 | % | 47.3 | % | |||||||
Used vehicle retail | 27.8 | % | 31.7 | % | |||||||
Used vehicle wholesale | 2.7 | % | 2.8 | % | |||||||
Parts and service | 14.2 | % | 13.0 | % | |||||||
Finance and insurance, net | 4.6 | % | 5.2 | % | |||||||
Total revenue | 100.0 | % | 100.0 | % | |||||||
GROSS PROFIT MIX PERCENTAGES: | |||||||||||
New vehicle | 25.8 | % | 27.9 | % | |||||||
Used vehicle retail | 9.7 | % | 12.3 | % | |||||||
Used vehicle wholesale | 0.8 | % | 0.4 | % | |||||||
Parts and service | 40.7 | % | 35.6 | % | |||||||
Finance and insurance, net | 22.9 | % | 23.8 | % | |||||||
Total gross profit | 100.0 | % | 100.0 | % | |||||||
GROSS PROFIT MARGIN | 19.2 | % | 20.3 | % | |||||||
SG&A EXPENSE AS A PERCENTAGE OF GROSS PROFIT | 57.6 | % | 56.7 | % |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Luxury | $ | 1,238.0 | $ | 1,135.5 | $ | 102.5 | 9 | % | |||||||||||||||
Import | 1,435.0 | 1,485.4 | (50.4) | (3) | % | ||||||||||||||||||
Domestic | 1,037.4 | 1,099.2 | (61.8) | (6) | % | ||||||||||||||||||
Total new vehicle revenue | $ | 3,710.4 | $ | 3,720.1 | $ | (9.7) | — | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Luxury | $ | 141.9 | $ | 147.3 | $ | (5.4) | (4) | % | |||||||||||||||
Import | 136.3 | 183.3 | (46.9) | (26) | % | ||||||||||||||||||
Domestic | 85.7 | 113.9 | (28.2) | (25) | % | ||||||||||||||||||
Total new vehicle gross profit | $ | 363.9 | $ | 444.4 | $ | (80.6) | (18) | % | |||||||||||||||
New vehicle units: | |||||||||||||||||||||||
Luxury | 17,354 | 17,156 | 198 | 1 | % | ||||||||||||||||||
Import | 37,356 | 40,242 | (2,886) | (7) | % | ||||||||||||||||||
Domestic | 18,056 | 20,473 | (2,417) | (12) | % | ||||||||||||||||||
Total new vehicle units | 72,766 | 77,871 | (5,105) | (7) | % | ||||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Luxury | $ | 1,227.1 | $ | 1,075.5 | $ | 151.7 | 14 | % | |||||||||||||||
Import | 1,435.0 | 1,361.9 | 73.0 | 5 | % | ||||||||||||||||||
Domestic | 1,037.4 | 1,064.5 | (27.1) | (3) | % | ||||||||||||||||||
Total new vehicle revenue | $ | 3,699.5 | $ | 3,501.9 | $ | 197.6 | 6 | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Luxury | $ | 140.4 | $ | 140.6 | $ | (0.2) | — | % | |||||||||||||||
Import | 136.4 | 169.1 | (32.8) | (19) | % | ||||||||||||||||||
Domestic | 85.7 | 110.4 | (24.8) | (22) | % | ||||||||||||||||||
Total new vehicle gross profit | $ | 362.5 | $ | 420.2 | $ | (57.7) | (14) | % | |||||||||||||||
New vehicle units: | |||||||||||||||||||||||
Luxury | 17,156 | 16,146 | 1,010 | 6 | % | ||||||||||||||||||
Import | 37,356 | 36,997 | 359 | 1 | % | ||||||||||||||||||
Domestic | 18,056 | 19,764 | (1,708) | (9) | % | ||||||||||||||||||
Total new vehicle units | 72,568 | 72,907 | (339) | — | % |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue per new vehicle sold | $ | 50,990 | $ | 47,773 | $ | 3,218 | 7 | % | |||||||||||||||
Gross profit per new vehicle sold | $ | 5,001 | $ | 5,707 | $ | (707) | (12) | % | |||||||||||||||
New vehicle gross margin | 9.8 | % | 11.9 | % | (2.1) | % | |||||||||||||||||
Luxury: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 8,175 | $ | 8,585 | $ | (410) | (5) | % | |||||||||||||||
New vehicle gross margin | 11.5 | % | 13.0 | % | (1.5) | % | |||||||||||||||||
Import: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 3,650 | $ | 4,554 | $ | (905) | (20) | % | |||||||||||||||
New vehicle gross margin | 9.5 | % | 12.3 | % | (2.8) | % | |||||||||||||||||
Domestic: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 4,745 | $ | 5,562 | $ | (817) | (15) | % | |||||||||||||||
New vehicle gross margin | 8.3 | % | 10.4 | % | (2.1) | % | |||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue per new vehicle sold | $ | 50,980 | $ | 48,033 | $ | 2,947 | 6 | % | |||||||||||||||
Gross profit per new vehicle sold | $ | 4,995 | $ | 5,763 | $ | (768) | (13) | % | |||||||||||||||
New vehicle gross margin | 9.8 | % | 12.0 | % | (2.2) | % | |||||||||||||||||
Luxury: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 8,187 | $ | 8,708 | $ | (522) | (6) | % | |||||||||||||||
New vehicle gross margin | 11.4 | % | 13.1 | % | (1.6) | % | |||||||||||||||||
Import: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 3,650 | $ | 4,571 | $ | (921) | (20) | % | |||||||||||||||
New vehicle gross margin | 9.5 | % | 12.4 | % | (2.9) | % | |||||||||||||||||
Domestic: | |||||||||||||||||||||||
Gross profit per new vehicle sold | $ | 4,746 | $ | 5,588 | $ | (842) | (15) | % | |||||||||||||||
New vehicle gross margin | 8.3 | % | 10.4 | % | (2.1) | % |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Used vehicle retail revenue | $ | 2,034.9 | $ | 2,489.7 | $ | (454.7) | (18) | % | |||||||||||||||
Used vehicle wholesale revenue | 198.9 | 223.7 | (24.8) | (11) | % | ||||||||||||||||||
Used vehicle revenue | $ | 2,233.9 | $ | 2,713.4 | $ | (479.5) | (18) | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Used vehicle retail gross profit | $ | 136.5 | $ | 196.5 | $ | (60.1) | (31) | % | |||||||||||||||
Used vehicle wholesale gross profit | 11.4 | 6.9 | 4.5 | 66 | % | ||||||||||||||||||
Used vehicle gross profit | $ | 147.9 | $ | 203.4 | $ | (55.5) | (27) | % | |||||||||||||||
Used vehicle retail units: | |||||||||||||||||||||||
Used vehicle retail units | 64,612 | 78,154 | (13,542) | (17) | % | ||||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||
Used vehicle retail revenue | $ | 2,023.6 | $ | 2,309.0 | $ | (285.4) | (12) | % | |||||||||||||||
Used vehicle wholesale revenue | 198.1 | 210.6 | (12.5) | (6) | % | ||||||||||||||||||
Used vehicle revenue | $ | 2,221.7 | $ | 2,519.6 | $ | (298.0) | (12) | % | |||||||||||||||
Gross profit: | |||||||||||||||||||||||
Used vehicle retail gross profit | $ | 135.9 | $ | 182.6 | $ | (46.8) | (26) | % | |||||||||||||||
Used vehicle wholesale gross profit | 11.5 | 6.8 | 4.8 | 71 | % | ||||||||||||||||||
Used vehicle gross profit | $ | 147.4 | $ | 189.4 | $ | (42.0) | (22) | % | |||||||||||||||
Used vehicle retail units: | |||||||||||||||||||||||
Used vehicle retail units | 64,132 | 71,661 | (7,529) | (11) | % |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Revenue per used vehicle retailed | $ | 31,495 | $ | 31,856 | $ | (361) | (1) | % | |||||||||||||||
Gross profit per used vehicle retailed | $ | 2,112 | $ | 2,515 | $ | (403) | (16) | % | |||||||||||||||
Used vehicle retail gross margin | 6.7 | % | 7.9 | % | (1.2) | % | |||||||||||||||||
Same Store: | |||||||||||||||||||||||
Revenue per used vehicle retailed | $ | 31,553 | $ | 32,221 | $ | (668) | (2) | % | |||||||||||||||
Gross profit per used vehicle retailed | $ | 2,118 | $ | 2,548 | $ | (430) | (17) | % | |||||||||||||||
Used vehicle retail gross margin | 6.7 | % | 7.9 | % | (1.2) | % |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Parts and service revenue | $ | 1,041.7 | $ | 1,022.1 | $ | 19.6 | 2 | % | |||||||||||||||
Parts and service gross profit: | |||||||||||||||||||||||
Customer pay | $ | 357.3 | $ | 349.3 | $ | 8.0 | 2 | % | |||||||||||||||
Warranty | 72.4 | 67.0 | 5.4 | 8 | % | ||||||||||||||||||
Wholesale parts | 39.6 | 40.0 | (0.4) | (1) | % | ||||||||||||||||||
Parts and service gross profit, excluding reconditioning and preparation | $ | 469.3 | $ | 456.3 | $ | 13.0 | 3 | % | |||||||||||||||
Parts and service gross margin, excluding reconditioning and preparation | 45.1 | % | 44.6 | % | 0.4 | % | |||||||||||||||||
Reconditioning and preparation * | $ | 104.8 | $ | 110.6 | $ | (5.8) | (5) | % | |||||||||||||||
Total parts and service gross profit | $ | 574.1 | $ | 566.9 | $ | 7.2 | 1 | % | |||||||||||||||
Total parts and service gross margin | 55.1 | % | 55.5 | % | (0.4) | % | |||||||||||||||||
Same Store: | |||||||||||||||||||||||
Parts and service revenue | $ | 1,039.3 | $ | 954.5 | $ | 84.8 | 9 | % | |||||||||||||||
Parts and service gross profit: | |||||||||||||||||||||||
Customer pay | $ | 356.3 | $ | 324.9 | $ | 31.4 | 10 | % | |||||||||||||||
Warranty | 72.3 | 63.6 | 8.7 | 14 | % | ||||||||||||||||||
Wholesale parts | 39.5 | 37.6 | 1.9 | 5 | % | ||||||||||||||||||
Parts and service gross profit, excluding reconditioning and preparation | $ | 468.1 | $ | 426.2 | $ | 42.0 | 10 | % | |||||||||||||||
Parts and service gross margin, excluding reconditioning and preparation | 45.0 | % | 44.6 | % | 0.4 | % | |||||||||||||||||
Reconditioning and preparation * | $ | 104.5 | $ | 102.5 | $ | 2.0 | 2 | % | |||||||||||||||
Total parts and service gross profit | $ | 572.6 | $ | 528.7 | $ | 44.0 | 8 | % | |||||||||||||||
Total parts and service gross margin | 55.1 | % | 55.4 | % | (0.3) | % |
For the Six Months Ended June 30, | Increase (Decrease) | % Change | |||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||
(Dollars in millions, except for per vehicle data) | |||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||
Finance and insurance, net revenue | $ | 338.9 | $ | 406.4 | $ | (67.5) | (17) | % | |||||||||||||||
Finance and insurance, net gross profit | $ | 323.4 | $ | 379.9 | $ | (56.5) | (15) | % | |||||||||||||||
Finance and insurance, net per vehicle sold | $ | 2,354 | $ | 2,435 | $ | (81) | (3) | % | |||||||||||||||
Same Store: | |||||||||||||||||||||||
Finance and insurance, net revenue | $ | 338.5 | $ | 384.9 | $ | (46.4) | (12) | % | |||||||||||||||
Finance and insurance, net gross profit | $ | 323.0 | $ | 358.4 | $ | (35.4) | (10) | % | |||||||||||||||
Finance and insurance, net per vehicle sold | $ | 2,363 | $ | 2,479 | $ | (116) | (5) | % |
For the Six Months Ended June 30, | Increase (Decrease) | % of Gross Profit Increase (Decrease) | |||||||||||||||||||||||||||||||||
2023 | % of Gross Profit | 2022 | % of Gross Profit | ||||||||||||||||||||||||||||||||
(Dollars in millions) | |||||||||||||||||||||||||||||||||||
As Reported: | |||||||||||||||||||||||||||||||||||
Personnel costs | $ | 553.1 | 39.2 | % | $ | 651.2 | 40.8 | % | $ | (98.1) | (1.6) | % | |||||||||||||||||||||||
Rent and related expenses | 64.2 | 4.6 | % | 62.3 | 3.9 | % | 1.9 | 0.6 | % | ||||||||||||||||||||||||||
Advertising | 21.2 | 1.5 | % | 28.4 | 1.8 | % | (7.2) | (0.3) | % | ||||||||||||||||||||||||||
Other | 173.1 | 12.3 | % | 161.8 | 10.1 | % | 11.3 | 2.1 | % | ||||||||||||||||||||||||||
Selling, general, and administrative expense | $ | 811.6 | 57.6 | % | $ | 903.7 | 56.7 | % | $ | (92.1) | 0.9 | % | |||||||||||||||||||||||
Gross profit | $ | 1,409.3 | $ | 1,594.7 | |||||||||||||||||||||||||||||||
Same Store: | |||||||||||||||||||||||||||||||||||
Personnel costs | $ | 551.2 | 39.2 | % | $ | 611.6 | 40.9 | % | $ | (60.4) | (1.6) | % | |||||||||||||||||||||||
Rent and related expenses | 64.0 | 4.6 | % | 59.2 | 4.0 | % | 4.8 | 0.6 | % | ||||||||||||||||||||||||||
Advertising | 21.0 | 1.5 | % | 24.9 | 1.7 | % | (3.9) | (0.2) | % | ||||||||||||||||||||||||||
Other | 171.9 | 12.2 | % | 153.5 | 10.3 | % | 18.4 | 2.0 | % | ||||||||||||||||||||||||||
Selling, general, and administrative expense | $ | 808.1 | 57.5 | % | $ | 849.2 | 56.7 | % | $ | (41.1) | 0.8 | % | |||||||||||||||||||||||
Gross profit | $ | 1,405.5 | $ | 1,496.6 |
For the Six Months Ended June 30, | |||||||||||
2023 | 2022 | ||||||||||
(In millions) | |||||||||||
Reconciliation of cash provided by operating activities to cash provided by operating activities, as adjusted | |||||||||||
Cash provided by operating activities, as reported | $ | 221.7 | $ | 496.6 | |||||||
Change in Floor Plan Notes Payable—Non-Trade, net | (2.8) | (203.0) | |||||||||
Change in Floor Plan Notes Payable—Non-Trade associated with floor plan offset, used vehicle borrowing base changes adjusted for acquisition and divestitures | 171.8 | 246.2 | |||||||||
Change in Floor Plan Notes Payable—Trade associated with floor plan offset, adjusted for acquisition and divestitures | 27.6 | 4.1 | |||||||||
Adjusted cash flow provided by operating activities | $ | 418.3 | $ | 543.9 | |||||||
Summarized Balance Sheet Data of Asbury and Guarantor Subsidiaries: | |||||||||||
As of | |||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
(In millions) | |||||||||||
Current assets | $ | 1,923.5 | $ | 1,790.1 | |||||||
Current assets - affiliates | $ | — | $ | — | |||||||
Non-current assets | $ | 5,534.2 | $ | 5,380.7 | |||||||
Current liabilities | $ | 783.7 | $ | 819.1 | |||||||
Current liabilities - affiliates | $ | 10.4 | $ | 10.0 | |||||||
Non-current liabilities | $ | 3,533.6 | $ | 3,566.3 |
For the Six Months Ended June 30, | |||||
2023 | |||||
(In millions) | |||||
Net sales | $ | 7,275.1 | |||
Gross profit | $ | 1,365.6 | |||
Income from operations | $ | 513.3 | |||
Net income | $ | 337.5 |
Inception Date | Notional Principal at Inception | Notional Value | Notional Principal at Maturity | Maturity Date | ||||||||||||||||||||||
(In millions) | (In millions) | (In millions) | ||||||||||||||||||||||||
January 2022 | $ | 300.0 | $ | 281.3 | $ | 228.8 | December 2026 | |||||||||||||||||||
January 2022 | $ | 250.0 | $ | 250.0 | $ | 250.0 | December 2031 | |||||||||||||||||||
May 2021 | $ | 184.4 | $ | 169.6 | $ | 110.6 | May 2031 | |||||||||||||||||||
July 2020 | $ | 93.5 | $ | 78.8 | $ | 50.6 | December 2028 | |||||||||||||||||||
July 2020 | $ | 85.5 | $ | 70.7 | $ | 57.3 | November 2025 | |||||||||||||||||||
June 2015 | $ | 100.0 | $ | 61.4 | $ | 53.1 | February 2025 | |||||||||||||||||||
November 2013 | $ | 75.0 | $ | 39.6 | $ | 38.7 | September 2023 |
Period | Total Number of Shares (or Units) Purchased | Average Price Paid per Share (or Unit) | Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs | Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs (In millions) | ||||||||||||||||||||||
04/01/2023 - 04/30/2023 | 199,005 | $ | 192.53 | 198,880 | $ | 151.8 | ||||||||||||||||||||
05/01/2023 - 05/31/2023 | 761,067 | $ | 199.47 | 760,923 | $ | 250.0 | ||||||||||||||||||||
06/01/2023 - 06/30/2023 | 110 | $ | 240.68 | — | $ | 250.0 | ||||||||||||||||||||
Total | 960,182 | 959,803 |
Exhibit Number | Description of Documents | |||||||
Certificate of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certificate of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a) of the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certificate of Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
Certificate of Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | ||||||||
101.INS | XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document | |||||||
101.SCH | XBRL Taxonomy Extension Schema Document | |||||||
101.CAL | XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
101.DEF | XBRL Taxonomy Extension Definition Linkbase Document | |||||||
101.LAB | XBRL Taxonomy Extension Label Linkbase Document | |||||||
101.PRE | XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
104 | Cover Page Interactive Data File (formatted in iXBRL Exhibit 101) |
Asbury Automotive Group, Inc. | ||||||||||||||
Date: | July 28, 2023 | By: | /s/ David W. Hult | |||||||||||
Name: | David W. Hult | |||||||||||||
Title: | Chief Executive Officer and President |
Date: | July 28, 2023 | By: | /s/ Michael D. Welch | |||||||||||
Name: | Michael D. Welch | |||||||||||||
Title: | Senior Vice President and Chief Financial Officer |
/s/ David W. Hult | |||||
David W. Hult | |||||
Chief Executive Officer | |||||
July 28, 2023 |
/s/ Michael D. Welch | |||||
Michael D. Welch | |||||
Chief Financial Officer | |||||
July 28, 2023 |
/s/ David W. Hult | |||||
David W. Hult | |||||
Chief Executive Officer | |||||
July 28, 2023 |
/s/ Michael D. Welch | |||||
Michael D. Welch | |||||
Chief Financial Officer | |||||
July 28, 2023 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
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Statement of Financial Position [Abstract] | ||
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 42,591,097 | 43,593,809 |
Treasury stock (in shares) | 22,016,267 | 22,024,479 |
Assets held-for-sale | $ 18.7 | $ 18.7 |
CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Millions, $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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REVENUE: | ||||
New vehicle | $ 1,942.7 | $ 1,864.6 | $ 3,710.4 | $ 3,720.1 |
Used vehicle | 1,107.3 | 1,362.4 | 2,233.9 | 2,713.4 |
Parts and service | 526.1 | 520.2 | 1,041.7 | 1,022.1 |
Finance and insurance, net | 166.3 | 203.0 | 338.9 | 406.4 |
TOTAL REVENUE | 3,742.5 | 3,950.1 | 7,324.8 | 7,862.0 |
COST OF SALES: | ||||
New vehicle | 1,757.7 | 1,644.1 | 3,346.5 | 3,275.7 |
Used vehicle | 1,036.4 | 1,258.3 | 2,086.0 | 2,510.0 |
Parts and service | 234.1 | 229.7 | 467.6 | 455.2 |
Finance and insurance | 1.2 | 15.3 | 15.5 | 26.5 |
TOTAL COST OF SALES | 3,029.4 | 3,147.4 | 5,915.5 | 6,267.3 |
GROSS PROFIT | 713.1 | 802.7 | 1,409.3 | 1,594.7 |
OPERATING EXPENSES: | ||||
Selling, general, and administrative | 408.6 | 448.2 | 811.6 | 903.7 |
Depreciation and amortization | 16.8 | 18.1 | 33.5 | 36.5 |
Other operating expense (income), net | 0.0 | 0.8 | 0.0 | (1.9) |
INCOME FROM OPERATIONS | 287.7 | 335.5 | 564.2 | 656.3 |
OTHER EXPENSES: | ||||
Floor plan interest expense | 0.8 | 1.5 | 1.5 | 4.1 |
Other interest expense, net | 39.3 | 37.6 | 76.6 | 75.2 |
(Gain) loss on dealership divestitures, net | (13.5) | 28.7 | (13.5) | (4.4) |
Total other expenses, net | 26.6 | 67.8 | 64.6 | 74.9 |
INCOME BEFORE INCOME TAXES | 261.1 | 267.7 | 499.6 | 581.4 |
Income tax expense | 64.8 | 66.4 | 121.9 | 142.3 |
NET INCOME | $ 196.4 | $ 201.4 | $ 377.7 | $ 439.1 |
Basic— | ||||
Net income (in dollars per share) | $ 9.37 | $ 9.11 | $ 17.78 | $ 19.60 |
Diluted— | ||||
Net income (in dollars per share) | $ 9.34 | $ 9.07 | $ 17.70 | $ 19.52 |
WEIGHTED AVERAGE SHARES OUTSTANDING: | ||||
Basic (in shares) | 20.9 | 22.1 | 21.2 | 22.4 |
Performance share units (in shares) | 0.1 | 0.1 | 0.1 | 0.1 |
Diluted (in shares) | 21.0 | 22.2 | 21.3 | 22.5 |
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
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Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 196.4 | $ 201.4 | $ 377.7 | $ 439.1 |
Other comprehensive income: | ||||
Change in fair value of cash flow swaps | 17.0 | 28.6 | (2.4) | 70.9 |
Income tax (expense) benefit associated with cash flow swaps | (4.1) | (6.9) | 0.6 | (17.4) |
Losses on available-for-sale debt securities | (4.2) | 0.0 | (1.7) | (2.1) |
Income tax benefit associated with available-for-sale debt securities | 0.2 | 0.5 | 0.4 | |
Comprehensive income | $ 206.0 | $ 223.3 | $ 374.7 | $ 490.9 |
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |||
---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Mar. 31, 2022 |
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Statement of Stockholders' Equity [Abstract] | ||||
Change in fair value of cash flow swaps, tax | $ (4.1) | $ 4.7 | $ 6.9 | $ 10.4 |
Gains (losses) on changes in fair value of debt securities, tax benefit | 1.0 | 0.5 | $ 0.2 | |
Share repurchases | $ (192.1) | $ (20.7) | $ (198.6) |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Asbury Automotive Group, Inc., a Delaware corporation organized in 2002, is one of the largest automotive retailers in the United States. Our store operations are conducted by our subsidiaries. As of June 30, 2023, we owned and operated 181 new vehicle franchises (138 dealership locations), representing 31 brands of automobiles, and 32 collision centers in 14 states. For the six months ended June 30, 2023, our new vehicle revenue brand mix consisted of 33% luxury, 39% imports and 28% domestic brands. Our stores offer an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes repair and maintenance services, replacement parts and collision repair services (collectively referred to as "parts and services" or "P&S"); and finance and insurance ("F&I") products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection ("GAP") debt cancellation and prepaid maintenance. The finance and insurance products are provided by independent third parties and Total Care Auto, Powered by Landcar ("TCA"). The Company reflects its operations in two reportable segments: Dealerships and TCA. Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), and reflect the consolidated accounts of Asbury Automotive Group, Inc. (the "Company") and our wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. If necessary, reclassifications of amounts previously reported have been made to the accompanying condensed consolidated financial statements in order to conform to current presentation. In the opinion of management, all adjustments, consisting only of normal, recurring adjustments, considered necessary for a fair statement of the condensed consolidated financial statements as of June 30, 2023, and for the three and six months ended June 30, 2023 and 2022, have been included, unless otherwise indicated. Amounts presented in the condensed consolidated financial statements have been calculated using non-rounded amounts for all periods presented and therefore certain amounts may not compute or tie to prior year financial statements due to rounding. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for any other interim period, or any full year period. Our condensed consolidated financial statements should be read together with our audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2022. Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed quarterly and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Estimates made in the accompanying condensed consolidated financial statements include, but are not limited to, those relating to inventory valuation reserves, reserves for chargebacks against revenue recognized from the sale of finance and insurance products, reserves for self-insurance programs, and certain assumptions related to goodwill and dealership franchise rights intangible assets. Share Repurchases Share repurchases may be made from time-to-time in open market transactions or through privately negotiated transactions under the authorization approved by the Board of Directors. Periodically, the Company may retire repurchased shares of common stock previously held by the Company as treasury stock. In accordance with our accounting policy, we allocate any excess share repurchase price over par value between additional paid-in capital, which is limited to amounts initially recorded for the same issue, and retained earnings. During the three months ended June 30, 2023, the Company repurchased and retired 959,803 shares of our common stock under our share repurchase program. There were no shares repurchased and retired during the three months ended June 30, 2022. During the six months ended June 30, 2023 and 2022, the Company repurchased 1,070,126 and 1,069,203 shares and retired 1,124,330 and 1,069,203 shares, of our common stock under our share repurchase program, respectively. The cash paid for these share repurchases was $210.7 million and $200.0 million for the six months ended June 30, 2023 and 2022, respectively. On May 25, 2023, we announced that our Board of Directors approved a new authorization to repurchase up to $250 million of the Company's common stock (the "New Share Repurchase Authorization"), which replaces our previous share repurchase authorization. As of July 24, 2023, the Company had $250 million remaining on its share repurchase authorization. Earnings per Share Basic earnings per share is computed by dividing net income by the weighted-average common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average common shares and common share equivalents outstanding during the period. The Company excluded 714 and 473 restricted share units and 0 and 18,339 performance share units issued under the Asbury Automotive Group, Inc. 2019 Equity and Incentive Compensation Plan from its computation of diluted earnings per share for the three months ended June 30, 2023 and 2022, respectively. During the six months ended June 30, 2023 and 2022, the Company excluded 3,947 and 1,669 restricted share units and 0 and 89 performance share units issued under the Asbury Automotive Group, Inc. 2019 Equity and Incentive Compensation Plan from its computation of diluted earnings per share, respectively, because they were anti-dilutive. For all periods presented, there were no adjustments to the numerator necessary to compute diluted earnings per share. Recent Accounting Pronouncements In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, Liabilities-Supplier Finance Programs. This standard serves to improve transparency about supplier finance programs. The ASU requires certain disclosures around key terms of outstanding supply chain finance programs and changes in obligations during a reporting period related to vendors participating in these programs. The new disclosure requirements do not affect the recognition, measurement or financial statement presentation of any amounts due. The guidance is effective for fiscal years beginning after December 15, 2022, except for rollforward information, which is effective in the first quarter of 2024. Early adoption is permitted. The adoption of this new guidance on January 1, 2023 did not have a material impact on our condensed consolidated financial statements. See Note 8, "Floor Plan Notes Payable."
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REVENUE RECOGNITION |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE RECOGNITION | REVENUE RECOGNITION Disaggregation of Revenue Revenue from contracts with customers for the three and six months ended June 30, 2023 and 2022 consists of the following:
Contract Assets Changes in contract assets during the period are reflected in the table below. Contract assets related to vehicle repair and maintenance services are transferred to receivables when a repair order is completed and invoiced to the customer. Certain incremental sales commissions payable to obtain an F&I revenue contract with a customer have been capitalized and are amortized using the same pattern of recognition applicable to the associated F&I revenue contract.
Deferred Revenue The condensed consolidated balance sheets reflect $714.0 million and $713.9 million of deferred revenue as of June 30, 2023 and December 31, 2022, respectively. Approximately $124.7 million of deferred revenue at December 31, 2022 was recorded in finance and insurance, net revenue in the condensed consolidated statements of income during the six months ended June 30, 2023.
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DIVESTITURES |
6 Months Ended |
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Jun. 30, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
DIVESTITURES | DIVESTITURESDuring the six months ended June 30, 2023, we sold one franchise (one dealership location) in Austin, Texas. The Company recorded a pre-tax gain totaling $13.5 million, which is presented in our accompanying condensed consolidated statements of income as gain on dealership divestitures, net. During the six months ended June 30, 2022, we sold one franchise (one dealership location) in St. Louis, Missouri, three franchises (three dealership locations) and one collision center in Denver, Colorado, two franchises (two dealership locations) in Spokane, Washington and one franchise (one dealership location) in Albuquerque, New Mexico. The Company recorded a pre-tax gain totaling $4.4 million, which is presented in our accompanying condensed consolidated statements of income as gain on dealership divestitures, net. |
ACCOUNTS RECEIVABLE |
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Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCOUNTS RECEIVABLE | ACCOUNTS RECEIVABLE Accounts receivable consisted of the following:
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INVENTORIES |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories consisted of the following:
(a) Inventories, net as of December 31, 2022, excluded $3.4 million classified as assets held for sale. The lower of cost and net realizable value reserves reduced total inventories by $8.6 million and $10.7 million as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023 and December 31, 2022, certain automobile manufacturer incentives reduced new vehicle inventory cost by $5.4 million and $2.7 million, respectively, and reduced new vehicle cost of sales for the six months ended June 30, 2023 and 2022 by $46.4 million and $48.8 million, respectively.
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ASSETS AND LIABILITIES HELD FOR SALE |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ASSETS HELD FOR SALE | ASSETS AND LIABILITIES HELD FOR SALE Assets and liabilities classified as held for sale include (i) assets and liabilities associated with pending dealership disposals, (ii) real estate not currently used in our operations that we are actively marketing to sell and (iii) the related mortgage notes payable, if applicable. A summary of assets held for sale and liabilities associated with assets held for sale is as follows:
As of June 30, 2023, assets held for sale consisted of real estate associated with four used vehicle stores, one collision center, and one real estate property not currently used in our operations. As of December 31, 2022, assets held for sale consisted of one franchise (one dealership location) in addition to one real estate property not currently used in our operations.
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INVESTMENTS |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVESTMENTS | INVESTMENTS Our investment portfolio is primarily funded by product premiums from the sale of our TCA F&I products. The amortized cost, gross unrealized gains and losses and estimated fair values of debt securities available-for-sale, equity securities, and other investments measured at net asset value are as follows:
There were no equity securities held as of June 30, 2023. The Company had an unrealized loss of $0.4 million related to equity securities held as of December 31, 2022. As of June 30, 2023 and December 31, 2022, the Company had $2.2 million and $1.3 million of accrued interest receivable, respectively, which is included in other current assets on the condensed consolidated balance sheets. The Company does not consider accrued interest receivable in the carrying amount of financial assets held at amortized cost basis or in the allowance for credit losses. A summary of amortized costs and fair value of investments by time to maturity, is as follows:
There were $0.1 million and $0.2 million gross gains realized, respectively, related to the sale of available-for-sale debt securities carried at fair value for the three and six months ended June 30, 2023. There were no gross losses realized related to the sale of available-for-sale debt securities carried at fair value for the three and six months ended June 30, 2023. There were $3.7 million gross gains and $0.9 million gross losses realized, respectively, related to the sale of equity securities carried at fair value for the three and six months ended June 30, 2023. There were no gross gains realized related to the sale of available-for-sale debt securities carried at fair value for the three and six months ended June 30, 2022. There were $0.5 million and $0.8 million gross losses realized, respectively, related to the sale of available-for-sale debt securities carried at fair value for three and six months ended June 30, 2022. There were $1.4 million and $1.8 million gross gains realized, respectively, related to the sale of equity securities carried at fair value for the three and six months ended June 30, 2022. There were $1.0 million and $1.4 million gross losses realized, respectively, related to the sale of equity securities carried at fair value for the three and six months ended June 30, 2022. The following tables summarize the amount of unrealized losses, defined as the amount by which the amortized cost exceeds fair value, and the related fair value of investments with unrealized losses. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. The reference point for determining how long an investment was in an unrealized loss position was June 30, 2023.
The Company reviews the investment securities portfolio at the security level on a quarterly basis for potential credit losses, which takes into consideration numerous factors including changes in credit ratings. The decline in fair value identified in the tables above are a result of widening market spreads and not a result of credit quality. Additionally, the Company has determined it has both the intent and ability to hold these investments until the market price recovers or until maturity and does not believe it will be required to sell the securities before maturity. Accordingly, no credit losses were recognized on these securities during the three and six months ended June 30, 2023.
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FLOOR PLAN NOTES PAYABLE |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FLOOR PLAN NOTES PAYABLE | FLOOR PLAN NOTES PAYABLE Floor plan notes payable consisted of the following:
(a) Floor plan notes payable—new non-trade as of December 31, 2022, excluded $2.8 million classified as liabilities associated with assets held for sale, respectively. (b) In addition to the $743.8 million and $613.6 million shown above as of June 30, 2023 and December 31, 2022, respectively, we held $32.9 million and $164.0 million, in the floor plan notes payable offset account as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, $32.9 million was shown as an offset to loaner vehicles notes payable. As of December 31, 2022, $100.8 million of the $164.0 million was reflected within cash and cash equivalents and the remaining $63.2 million was shown as an offset to loaner vehicles notes payable. Loaner vehicle notes payable is included in accounts payable and accrued liabilities within the condensed consolidated balance sheets. We have floor plan offset accounts that allow us to offset our floor plan notes payable balances outstanding with transfers of cash to reduce the amount of outstanding floor plan notes payable that would otherwise accrue interest, while retaining the ability to transfer amounts from the offset account into our operating cash accounts within the same day. We have the ability to convert a portion of our availability under the Revolving Credit Facility to the New Vehicle Floor Plan Facility or the Used Vehicle Floor Plan Facility. The maximum amount we are allowed to convert is determined based on our aggregate revolving commitment under the Revolving Credit Facility, less $50.0 million. In addition, we are able to convert any amounts moved to the New Vehicle Floor Plan Facility or Used Vehicle Floor Plan Facility back to the Revolving Credit Facility. On May 27, 2022, $389.0 million of our availability under the Revolving Credit Facility was re-designated to the New Vehicle Floor Plan Facility to take advantage of lower commitment fee rates. On March 31, 2023, we designated this $389.0 million back to the Revolving Credit Facility. In addition to our new and used vehicle floor plan facilities, we have loaner vehicle floor plan facilities with Ford Motor Credit Company (“Ford Credit”), Bank of America and certain original equipment manufacturers (“OEMs”). Loaner vehicles notes payable related to Ford Credit as of June 30, 2023 and December 31, 2022 were $7.7 million and $13.4 million, respectively. Loaner vehicles notes payable related to Bank of America as of June 30, 2023 and December 31, 2022 were $60.9 million and $10.8 million, net of offsets of $32.9 million and $63.2 million, respectively. Loaner vehicles notes payable related to OEMs as of June 30, 2023 and December 31, 2022 were $81.1 million and $70.4 million, respectively. DEBTLong-term debt consisted of the following:
____________________________ (a) Mortgage notes payable excluded $2.7 million that were classified as liabilities associated with assets held for sale as of December 31, 2022. (b) Amounts reflected for the 2021 Real Estate Facility as of June 30, 2023 excluded $6.8 million classified as liabilities associated with assets held for sale. (c) Amounts reflected for the 2018 Bank of America Facility as of December 31, 2022, excluded $4.1 million classified as liabilities associated with assets held for sale. In June 2023, the Company prepaid the aggregate principal amounts remaining under the 2013 BofA Real Estate Facility for an aggregate amount of approximately $23.9 million with cash on hand.
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LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | FLOOR PLAN NOTES PAYABLE Floor plan notes payable consisted of the following:
(a) Floor plan notes payable—new non-trade as of December 31, 2022, excluded $2.8 million classified as liabilities associated with assets held for sale, respectively. (b) In addition to the $743.8 million and $613.6 million shown above as of June 30, 2023 and December 31, 2022, respectively, we held $32.9 million and $164.0 million, in the floor plan notes payable offset account as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, $32.9 million was shown as an offset to loaner vehicles notes payable. As of December 31, 2022, $100.8 million of the $164.0 million was reflected within cash and cash equivalents and the remaining $63.2 million was shown as an offset to loaner vehicles notes payable. Loaner vehicle notes payable is included in accounts payable and accrued liabilities within the condensed consolidated balance sheets. We have floor plan offset accounts that allow us to offset our floor plan notes payable balances outstanding with transfers of cash to reduce the amount of outstanding floor plan notes payable that would otherwise accrue interest, while retaining the ability to transfer amounts from the offset account into our operating cash accounts within the same day. We have the ability to convert a portion of our availability under the Revolving Credit Facility to the New Vehicle Floor Plan Facility or the Used Vehicle Floor Plan Facility. The maximum amount we are allowed to convert is determined based on our aggregate revolving commitment under the Revolving Credit Facility, less $50.0 million. In addition, we are able to convert any amounts moved to the New Vehicle Floor Plan Facility or Used Vehicle Floor Plan Facility back to the Revolving Credit Facility. On May 27, 2022, $389.0 million of our availability under the Revolving Credit Facility was re-designated to the New Vehicle Floor Plan Facility to take advantage of lower commitment fee rates. On March 31, 2023, we designated this $389.0 million back to the Revolving Credit Facility. In addition to our new and used vehicle floor plan facilities, we have loaner vehicle floor plan facilities with Ford Motor Credit Company (“Ford Credit”), Bank of America and certain original equipment manufacturers (“OEMs”). Loaner vehicles notes payable related to Ford Credit as of June 30, 2023 and December 31, 2022 were $7.7 million and $13.4 million, respectively. Loaner vehicles notes payable related to Bank of America as of June 30, 2023 and December 31, 2022 were $60.9 million and $10.8 million, net of offsets of $32.9 million and $63.2 million, respectively. Loaner vehicles notes payable related to OEMs as of June 30, 2023 and December 31, 2022 were $81.1 million and $70.4 million, respectively. DEBTLong-term debt consisted of the following:
____________________________ (a) Mortgage notes payable excluded $2.7 million that were classified as liabilities associated with assets held for sale as of December 31, 2022. (b) Amounts reflected for the 2021 Real Estate Facility as of June 30, 2023 excluded $6.8 million classified as liabilities associated with assets held for sale. (c) Amounts reflected for the 2018 Bank of America Facility as of December 31, 2022, excluded $4.1 million classified as liabilities associated with assets held for sale. In June 2023, the Company prepaid the aggregate principal amounts remaining under the 2013 BofA Real Estate Facility for an aggregate amount of approximately $23.9 million with cash on hand.
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FINANCIAL INSTRUMENTS AND FAIR VALUE |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE | FINANCIAL INSTRUMENTS AND FAIR VALUEIn determining fair value, we use various valuation approaches, including market and income approaches. Accounting standards establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the presumptions market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows: Level 1-Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. Level 2-Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Assets and liabilities utilizing Level 2 inputs include interest rate swap instruments, exchange-traded debt securities that are not actively traded or do not have a high trading volume, mortgage notes payable and certain real estate properties on a non-recurring basis. Level 3-Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Asset and liability measurements utilizing Level 3 inputs include those used in estimating the fair value of certain non-financial assets and non-financial liabilities in purchase acquisitions and those used in the assessment of impairment for goodwill and manufacturer franchise rights. The availability of observable inputs can vary and is affected by a wide variety of factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment required to determine fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement. Fair value is a market-based exit price measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, our assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. We use inputs that are current as of the measurement date, including during periods of significant market fluctuations. Financial instruments consist primarily of cash and cash equivalents, contracts-in-transit, accounts receivable, cash surrender value of corporate-owned life insurance policies, accounts payable, floor plan notes payable, subordinated long-term debt, mortgage notes payable and interest rate swap instruments. The carrying values of our financial instruments, with the exception of subordinated long-term debt and certain mortgage notes payable, approximate fair value due to (i) their short-term nature, (ii) recently completed market transactions or (iii) existence of variable interest rates, which approximate market rates. The fair value of our subordinated long-term debt is based on reported market prices in an inactive market that reflect Level 2 inputs. We estimate the fair value of our mortgage notes payable using a present value technique based on current market interest rates for similar types of financial instruments that reflect Level 2 inputs. A summary of the carrying values and fair values of our subordinated long-term debt and our mortgage notes payable is as follows:
____________________________ (a) Mortgage notes payable excluded $6.8 million classified as liabilities associated with assets held for sale as of June 30, 2023 and December 31, 2022. Interest Rate Swap Agreements We currently have seven interest rate swap agreements. In January 2022, we entered into two new interest rate swap agreements with a combined notional principal amount of $550.0 million. These swaps are designed to provide a hedge against changes in variable rate cash flows regarding fluctuations in the SOFR rate. All interest rate swap agreements with an inception date of 2021 and prior were amended on June 1, 2022 to provide a hedge against changes in variable rate cash flows regarding fluctuations in SOFR as compared to the previous benchmark rate of one-month LIBOR. The revisions to the interest rate swap agreements did not impact our hedge accounting because we applied the accounting expedients outlined in ASU 2020-04 and ASU 2021-01 of ASC Topic 848, Reference Rate Reform. The following table provides information on the attributes of each swap as of June 30, 2023:
The fair value of cash flow swaps is calculated as the present value of expected future cash flows, determined on the basis of forward interest rates and present value factors. Fair value estimates reflect a credit adjustment to the discount rate applied to all expected cash flows under the swaps. Other than this input, all other inputs used in the valuation of these swaps are designated to be Level 2 inputs. The fair value of our swaps was a $100.0 million and $102.4 million asset as of June 30, 2023 and December 31, 2022, respectively. The following table provides information regarding the fair value of our interest rate swap agreements and the impact on the condensed consolidated balance sheets:
Our interest rate swaps qualify for cash flow hedge accounting treatment. These interest rate swaps are marked to market at each reporting date and any unrealized gains or losses are included in accumulated other comprehensive income and reclassified to interest expense in the same period or periods during which the hedged transactions affect earnings. Information about the effect of our interest rate swap agreements in the accompanying condensed consolidated statements of income and condensed consolidated statements of comprehensive income, is as follows (in millions):
On the basis of yield curve conditions as of June 30, 2023 and including assumptions about future changes in fair value, we expect the amount to be reclassified out of accumulated other comprehensive income into earnings within the next 12 months will be gains of $32.5 million. Investments The table below presents the Company’s investment securities that are measured at fair value on a recurring basis aggregated by the level in the fair value hierarchy within which those measurements fall:
We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain investments. Such reclassifications are reported as transfers in and out of Level 3, or between other levels, at the beginning fair value for the reporting period in which the changes occur. Available-for-sale debt securities are recorded at fair value and any unrealized gains or losses are included in accumulated other comprehensive income and reclassified to finance and insurance, net revenue in the period or periods during which the debt securities are sold and the gains or losses are realized. Information about the effect of our available-for-sale debt securities in the accompanying condensed consolidated statements of income and condensed consolidated statements of comprehensive income, is as follows (in millions):
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SUPPLEMENTAL CASH FLOW INFORMATION |
6 Months Ended |
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Jun. 30, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
SUPPLEMENTAL CASH FLOW INFORMATION | SUPPLEMENTAL CASH FLOW INFORMATION During the six months ended June 30, 2023 and 2022, we made interest payments, including amounts capitalized, totaling $73.2 million and $74.4 million, respectively. During the six months ended June 30, 2023 and 2022, we made income tax payments, net of refunds received, totaling $127.4 million. and $120.9 million, respectively. During the six months ended June 30, 2023 and 2022, we transferred $197.9 million and $128.7 million, respectively, of loaner vehicles from other current assets to inventories on our condensed consolidated balance sheets.
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SEGMENT INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION | SEGMENT INFORMATIONAs of June 30, 2023, the Company had two reportable segments: (1) Dealerships and (2) TCA. Our dealership operations are organized by management into geographic market-based groups within the Dealerships segment. The operations of our F&I product provider are reflected within our TCA segment. Our Chief Operating Decision Maker is our Chief Executive Officer who manages the business, regularly reviews financial information and allocates resources at the geographic market level for our dealerships and at the TCA segment level for our F&I product provider's operations. The geographic dealership group operating segments have been aggregated into one reportable segment as their operations (i) have similar economic characteristics (our markets all have similar long-term average gross margins), (ii) offer similar products and services (all of our markets offer new and used vehicles, parts and service, and finance and insurance products), (iii) have similar customers, (iv) have similar distribution and marketing practices (all of our markets distribute products and services through dealership facilities that market to customers in similar ways), and (v) operate under similar regulatory environments. TCA's vehicle protection products are sold through affiliated dealerships and the revenue from the related commissions is included in finance and insurance, net revenue in the Dealerships segment before consolidation. The corresponding claims expense incurred and the amortization of deferred acquisition costs is recorded as a cost of sales in the TCA segment. The Dealerships segment also provides vehicle repair and maintenance services to TCA customers in connection with claims related to TCA's vehicle protection products. Upon consolidation, the associated service revenue and costs recorded by the Dealerships segment are eliminated against claims expense recorded by the TCA segment. Reportable segment financial information for the three and six months ended June 30, 2023 and 2022, are as follows:
Total assets by segment as of June 30, 2023 and December 31, 2022 are as follows:
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COMMITMENTS AND CONTINGENCIES |
6 Months Ended |
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Jun. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Our dealerships are party to dealer and framework agreements with applicable vehicle manufacturers. In accordance with these agreements, each dealership has certain rights and is subject to restrictions typical in the industry. The ability of these manufacturers to influence the operations of the dealerships or the loss of any of these agreements could have a materially negative impact on our operating results. In some instances, manufacturers may have the right, and may direct us, to implement costly capital improvements to dealerships as a condition to entering into, renewing, or extending franchise agreements with them. Manufacturers also typically require that their franchises meet specific standards of appearance. These factors, either alone or in combination, could cause us to use our financial resources on capital projects for which we might not have planned or otherwise determined to undertake. From time-to-time, we and our dealerships are or may become involved in various claims relating to, and arising out of, our business and our operations. These claims may involve, but not be limited to, financial and other audits by vehicle manufacturers or lenders and certain federal, state, and local government authorities, which have historically related primarily to (i) incentive and warranty payments received from vehicle manufacturers, or allegations of violations of manufacturer agreements or policies, (ii) compliance with lender rules and covenants, and (iii) payments made to government authorities relating to federal, state, and local taxes, as well as compliance with other government regulations. Claims may also arise through litigation, government proceedings, and other dispute resolution processes. Such claims, including class actions, could relate to, but may not be limited to, the practice of charging administrative fees and other fees and commissions, employment-related matters, truth-in-lending and other dealer assisted financing obligations, contractual disputes, actions brought by governmental authorities, and other matters. We evaluate pending and threatened claims and establish loss contingency reserves based upon outcomes we currently believe to be probable and reasonably estimable. Based on our review of the various types of claims currently known to us, there is no indication of material reasonably possible losses in excess of amounts accrued in the aggregate. We currently do not anticipate that any known claim will materially adversely affect our financial condition, liquidity, or results of operations. However, the outcome of any matter cannot be predicted with certainty, and an unfavorable resolution of one or more matters presently known or arising in the future could have a material adverse effect on our financial condition, liquidity, or results of operations. A significant portion of our business involves the sale of vehicles, parts, or vehicles composed of parts that are manufactured outside the United States. As a result, our operations are subject to customary risks of importing merchandise, including fluctuations in the relative values of currencies, import duties, exchange controls, trade restrictions, work stoppages, and general political and socio-economic conditions in foreign countries. The United States or the countries from which our products are imported may, from time-to-time, impose new quotas, duties, tariffs, or other restrictions, or adjust presently prevailing quotas, duties, or tariffs, which may affect our operations, and our ability to purchase imported vehicles and/or parts at reasonable prices. Substantially all of our facilities are subject to federal, state and local provisions regarding the discharge of materials into the environment. Compliance with these provisions has not had, nor do we expect such compliance to have, any material effect upon our capital expenditures, net earnings, financial condition, liquidity or competitive position. We believe that our current practices and procedures for the control and disposition of such materials comply with applicable federal, state, and local requirements. No assurances can be provided, however, that future laws or regulations, or changes in existing laws or regulations, would not require us to expend significant resources in order to comply therewith. We had $14.0 million of letters of credit outstanding as of June 30, 2023, which are required by certain of our insurance providers. In addition, as of June 30, 2023, we maintained a $18.3 million surety bond line in the ordinary course of our business. Our letters of credit and surety bond line are considered to be off balance sheet arrangements.
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DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
6 Months Ended |
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Jun. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying condensed consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), and reflect the consolidated accounts of Asbury Automotive Group, Inc. (the "Company") and our wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. If necessary, reclassifications of amounts previously reported have been made to the accompanying condensed consolidated financial statements in order to conform to current presentation. In the opinion of management, all adjustments, consisting only of normal, recurring adjustments, considered necessary for a fair statement of the condensed consolidated financial statements as of June 30, 2023, and for the three and six months ended June 30, 2023 and 2022, have been included, unless otherwise indicated. Amounts presented in the condensed consolidated financial statements have been calculated using non-rounded amounts for all periods presented and therefore certain amounts may not compute or tie to prior year financial statements due to rounding. The results of operations for the three and six months ended June 30, 2023 are not necessarily indicative of the results that may be expected for any other interim period, or any full year period. Our condensed consolidated financial statements should be read together with our audited consolidated financial statements contained in our Annual Report on Form 10-K for the year ended December 31, 2022.
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Use of Estimates | Use of Estimates The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed quarterly and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Estimates made in the accompanying condensed consolidated financial statements include, but are not limited to, those relating to inventory valuation reserves, reserves for chargebacks against revenue recognized from the sale of finance and insurance products, reserves for self-insurance programs, and certain assumptions related to goodwill and dealership franchise rights intangible assets.
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Share Repurchases | Share Repurchases Share repurchases may be made from time-to-time in open market transactions or through privately negotiated transactions under the authorization approved by the Board of Directors. Periodically, the Company may retire repurchased shares of common stock previously held by the Company as treasury stock. In accordance with our accounting policy, we allocate any excess share repurchase price over par value between additional paid-in capital, which is limited to amounts initially recorded for the same issue, and retained earnings. During the three months ended June 30, 2023, the Company repurchased and retired 959,803 shares of our common stock under our share repurchase program. There were no shares repurchased and retired during the three months ended June 30, 2022. During the six months ended June 30, 2023 and 2022, the Company repurchased 1,070,126 and 1,069,203 shares and retired 1,124,330 and 1,069,203 shares, of our common stock under our share repurchase program, respectively. The cash paid for these share repurchases was $210.7 million and $200.0 million for the six months ended June 30, 2023 and 2022, respectively. On May 25, 2023, we announced that our Board of Directors approved a new authorization to repurchase up to $250 million of the Company's common stock (the "New Share Repurchase Authorization"), which replaces our previous share repurchase authorization. As of July 24, 2023, the Company had $250 million remaining on its share repurchase authorization.
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Earnings per Share | Earnings per Share Basic earnings per share is computed by dividing net income by the weighted-average common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average common shares and common share equivalents outstanding during the period. The Company excluded 714 and 473 restricted share units and 0 and 18,339 performance share units issued under the Asbury Automotive Group, Inc. 2019 Equity and Incentive Compensation Plan from its computation of diluted earnings per share for the three months ended June 30, 2023 and 2022, respectively. During the six months ended June 30, 2023 and 2022, the Company excluded 3,947 and 1,669 restricted share units and 0 and 89 performance share units issued under the Asbury Automotive Group, Inc. 2019 Equity and Incentive Compensation Plan from its computation of diluted earnings per share, respectively, because they were anti-dilutive. For all periods presented, there were no adjustments to the numerator necessary to compute diluted earnings per share.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In September 2022, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2022-04, Liabilities-Supplier Finance Programs. This standard serves to improve transparency about supplier finance programs. The ASU requires certain disclosures around key terms of outstanding supply chain finance programs and changes in obligations during a reporting period related to vendors participating in these programs. The new disclosure requirements do not affect the recognition, measurement or financial statement presentation of any amounts due. The guidance is effective for fiscal years beginning after December 15, 2022, except for rollforward information, which is effective in the first quarter of 2024. Early adoption is permitted. The adoption of this new guidance on January 1, 2023 did not have a material impact on our condensed consolidated financial statements. See Note 8, "Floor Plan Notes Payable."
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REVENUE RECOGNITION (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Disaggregation of Revenue | Revenue from contracts with customers for the three and six months ended June 30, 2023 and 2022 consists of the following:
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Schedule of Contract with Customer, Assets | Changes in contract assets during the period are reflected in the table below. Contract assets related to vehicle repair and maintenance services are transferred to receivables when a repair order is completed and invoiced to the customer. Certain incremental sales commissions payable to obtain an F&I revenue contract with a customer have been capitalized and are amortized using the same pattern of recognition applicable to the associated F&I revenue contract.
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ACCOUNTS RECEIVABLE (Tables) |
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable | Accounts receivable consisted of the following:
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INVENTORIES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventory | Inventories consisted of the following:
(a) Inventories, net as of December 31, 2022, excluded $3.4 million classified as assets held for sale.
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ASSETS AND LIABILITIES HELD FOR SALE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Assets Held for Sale and Liabilities Associated with Assets Held for Sale | A summary of assets held for sale and liabilities associated with assets held for sale is as follows:
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INVESTMENTS (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Amounts of Investment Securities and Fair Values | The amortized cost, gross unrealized gains and losses and estimated fair values of debt securities available-for-sale, equity securities, and other investments measured at net asset value are as follows:
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Schedule of Amortized Cost and Fair Value of TCA's Investment | A summary of amortized costs and fair value of investments by time to maturity, is as follows:
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Schedule of Unrealized Loss on Investments | The following tables summarize the amount of unrealized losses, defined as the amount by which the amortized cost exceeds fair value, and the related fair value of investments with unrealized losses. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position for 12 or more months. The reference point for determining how long an investment was in an unrealized loss position was June 30, 2023.
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FLOOR PLAN NOTES PAYABLE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Floor Plan Notes Payable | Floor plan notes payable consisted of the following:
(a) Floor plan notes payable—new non-trade as of December 31, 2022, excluded $2.8 million classified as liabilities associated with assets held for sale, respectively. (b) In addition to the $743.8 million and $613.6 million shown above as of June 30, 2023 and December 31, 2022, respectively, we held $32.9 million and $164.0 million, in the floor plan notes payable offset account as of June 30, 2023 and December 31, 2022, respectively. As of June 30, 2023, $32.9 million was shown as an offset to loaner vehicles notes payable. As of December 31, 2022, $100.8 million of the $164.0 million was reflected within cash and cash equivalents and the remaining $63.2 million was shown as an offset to loaner vehicles notes payable. Loaner vehicle notes payable is included in accounts payable and accrued liabilities within the condensed consolidated balance sheets.
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LONG-TERM DEBT (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Long-term Debt | Long-term debt consisted of the following:
____________________________ (a) Mortgage notes payable excluded $2.7 million that were classified as liabilities associated with assets held for sale as of December 31, 2022. (b) Amounts reflected for the 2021 Real Estate Facility as of June 30, 2023 excluded $6.8 million classified as liabilities associated with assets held for sale. (c) Amounts reflected for the 2018 Bank of America Facility as of December 31, 2022, excluded $4.1 million classified as liabilities associated with assets held for sale.
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FINANCIAL INSTRUMENTS AND FAIR VALUE (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Carrying Values and Fair Values of Liabilities | A summary of the carrying values and fair values of our subordinated long-term debt and our mortgage notes payable is as follows:
____________________________ (a) Mortgage notes payable excluded $6.8 million classified as liabilities associated with assets held for sale as of June 30, 2023 and December 31, 2022.
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Schedule of Derivative Instruments | The following table provides information on the attributes of each swap as of June 30, 2023:
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Schedule of Derivative Instruments Fair Value | The following table provides information regarding the fair value of our interest rate swap agreements and the impact on the condensed consolidated balance sheets:
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Schedule of Derivative Instruments Effect on Accumulated Other Comprehensive Income | Information about the effect of our interest rate swap agreements in the accompanying condensed consolidated statements of income and condensed consolidated statements of comprehensive income, is as follows (in millions):
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Schedule of Fair Value, Assets Measured on Recurring and Nonrecurring Basis | The table below presents the Company’s investment securities that are measured at fair value on a recurring basis aggregated by the level in the fair value hierarchy within which those measurements fall:
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Schedule of Debt Securities, Available-for-Sale | Information about the effect of our available-for-sale debt securities in the accompanying condensed consolidated statements of income and condensed consolidated statements of comprehensive income, is as follows (in millions):
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SEGMENT INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information | Reportable segment financial information for the three and six months ended June 30, 2023 and 2022, are as follows:
Total assets by segment as of June 30, 2023 and December 31, 2022 are as follows:
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REVENUE RECOGNITION (Narrative) (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Business Acquisition [Line Items] | ||
Deferred revenue | $ 714.0 | $ 713.9 |
Finance and insurance, net | ||
Business Acquisition [Line Items] | ||
Deferred revenue | $ 124.7 |
ACCOUNTS RECEIVABLE (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 177.4 | $ 174.1 |
Less—Allowance for doubtful accounts | (1.7) | (2.2) |
Accounts receivable, net | 175.7 | 171.9 |
Vehicle receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 51.8 | 50.4 |
Manufacturer receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | 43.1 | 43.3 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total accounts receivable | $ 82.4 | $ 80.5 |
INVENTORIES (Details) - USD ($) $ in Millions |
6 Months Ended | ||
---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
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Components of Inventory [Line Items] | |||
Total inventories | $ 1,199.2 | $ 959.2 | |
Lower of cost or market inventory reserves | 8.6 | 10.7 | |
Held-for-sale | |||
Components of Inventory [Line Items] | |||
Total inventories | 3.4 | ||
New vehicles | |||
Components of Inventory [Line Items] | |||
Total inventories | 706.5 | 527.7 | |
Reduction of new vehicle inventory cost by automobile manufacturer incentives | (5.4) | (2.7) | |
Reduction to cost of sales | 46.4 | $ 48.8 | |
Used vehicles | |||
Components of Inventory [Line Items] | |||
Total inventories | 357.7 | 304.4 | |
Parts and accessories | |||
Components of Inventory [Line Items] | |||
Total inventories | $ 135.0 | $ 127.2 |
ASSETS HELD FOR SALE - Assets Held for Sale and Liabilities Associated with the Assets (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Assets: | ||
Inventory | $ 0.0 | $ 3.4 |
Loaners, net | 0.0 | 0.9 |
Property and equipment, net | 25.5 | 24.0 |
Operating lease right-of-use assets | 2.0 | 0.0 |
Goodwill | 0.0 | 0.9 |
Total assets held for sale | 27.5 | 29.1 |
Liabilities: | ||
Floor plan notes payable—non-trade | 0.0 | 2.8 |
Loaners notes payable | 0.0 | 0.8 |
Current maturities of long-term debt | 0.4 | 0.6 |
Long-term debt | 6.4 | 6.2 |
Operating lease liabilities | 2.0 | 0.0 |
Total liabilities associated with assets held for sale | 8.8 | 10.5 |
Net assets held for sale | $ 18.7 | $ 18.7 |
ASSETS AND LIABILITIES HELD FOR SALE - Narrative (Details) |
9 Months Ended | |||
---|---|---|---|---|
Sep. 30, 2022
dealership_location
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Jun. 30, 2023
collisionCenters
property
usedVehicleStore
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Dec. 31, 2022
property
|
Dec. 31, 2022
franchise
|
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Long Lived Assets Held-for-sale [Line Items] | ||||
Number of collision centers (in collision centers) | collisionCenters | 1 | |||
Number of used vehicle stores | usedVehicleStore | 4 | |||
Held-for-sale | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Number of real estate properties | 1 | 1 | 1 | |
Number of dealership locations acquired (in dealership locations) | dealership_location | 1 |
INVESTMENTS - Narrative (Details) - USD ($) |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Jun. 30, 2023 |
Mar. 31, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
Dec. 31, 2022 |
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Investments, Debt and Equity Securities [Abstract] | ||||||
Unrealized gain (loss) | $ (400,000) | |||||
Interest receivable | $ 2,200,000 | $ 2,200,000 | $ 1,300,000 | |||
Debt securities, available-for-sale, realized gain | 100,000 | $ 0 | 200,000 | $ 0 | ||
Debt securities, available-for-sale, realized loss | 0 | 500,000 | 0 | 800,000 | ||
Equity securities, available-for-sale, realized gain | 3,700,000 | 1,400,000 | 1,800,000 | |||
Equity securities, available-for-sale, realized loss | $ (1,000,000) | (900,000) | $ (1,400,000) | |||
HTM, allowance | $ 0 | $ 0 |
INVESTMENTS - Amortized Cost and Fair Value of TCA's Investment (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Available-for-Sale, Amortized Cost | ||
Due in 1 year or less | $ 10.3 | |
Due in 1-5 years | 101.0 | |
Due in 5-10 years | 57.3 | |
Due after 10 years | 3.2 | |
Total by maturity | 171.8 | |
Available-for-Sale, Fair Value | ||
Due in 1 year or less | 10.3 | |
Due in 1-5 years | 98.8 | |
Due in 5-10 years | 56.2 | |
Due after 10 years | 3.2 | |
Total by maturity | 168.5 | |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 303.2 | $ 244.2 |
Fair Value | 297.6 | 240.4 |
Mortgage and other asset-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 131.3 | 73.8 |
Fair Value | $ 129.1 | 72.7 |
Common Stock | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 48.7 | |
Fair Value | $ 48.7 |
FLOOR PLAN NOTES PAYABLE - Schedule of Floor Plan Notes Payable (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Floor Plan Notes Payable [Line Items] | ||
Floor plan notes payable—trade | $ 91.0 | $ 65.1 |
Floor plan notes payable offset account | (41.7) | (14.2) |
Floor plan notes payable—trade, net | 49.3 | 51.0 |
Floor plan notes payable—non-trade | 743.8 | 613.6 |
Floor plan notes payable offset account (b) | (743.8) | (613.6) |
Floor plan notes payable—non-trade, net | 0.0 | 0.0 |
Floor plan notes payable—non-trade, liabilities associated with assets held for sale | 2.8 | |
Floor plan, notes payable, offset account, additional amount | 32.9 | 164.0 |
Cash and Cash Equivalents | ||
Floor Plan Notes Payable [Line Items] | ||
Floor plan, notes payable, offset account, additional amount | 100.8 | |
Accounts Payable and Accrued Liabilities | ||
Floor Plan Notes Payable [Line Items] | ||
Floor plan, notes payable, offset account, additional amount | $ 32.9 | $ 63.2 |
FLOOR PLAN NOTES PAYABLE - Narrative (Details) - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
May 27, 2022 |
---|---|---|---|
Floor Plan Notes Payable [Line Items] | |||
Debt instrument, conversion, maximum convertible amount, amount subtracted from contractual total | $ 50.0 | ||
Amount available under revolving loan credit facility transferred to new vehicle floor plan facility | $ 389.0 | ||
Loaner Vehicle Notes Payable - Ford Credit | |||
Floor Plan Notes Payable [Line Items] | |||
Notes payable | 7.7 | $ 13.4 | |
Loaner Vehicle Notes Payable - Bank of America | |||
Floor Plan Notes Payable [Line Items] | |||
Notes payable | 60.9 | 10.8 | |
Notes payable, offsets | 32.9 | 63.2 | |
Loaner Vehicle Notes Payable - OEMs | |||
Floor Plan Notes Payable [Line Items] | |||
Notes payable | $ 81.1 | $ 70.4 |
FINANCIAL INSTRUMENTS AND FAIR VALUE (Narrative) (Details) |
Jun. 30, 2023
USD ($)
numberOfInstruments
|
Dec. 31, 2022
USD ($)
|
Jan. 31, 2022
USD ($)
numberOfInstruments
|
---|---|---|---|
Level 2 | Liabilities | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Fair value of interest rate swaps | $ (102,400,000) | ||
Interest Rate Swap | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of instruments held | numberOfInstruments | 7 | 2 | |
Notional amount | $ 550,000,000 | ||
Notional principal amount at maturity | $ 228,800,000 | ||
Fair value of interest rate swaps | $ 100,000,000 | $ 102,400,000 | |
Interest rate swap, net loss amount expected to be reclassified in the next twelve months | $ (32,500,000) |
FINANCIAL INSTRUMENTS AND FAIR VALUE (Schedule of Fair value of Interest Rate Swaps) (Details) - Interest Rate Swap - USD ($) $ in Millions |
Jun. 30, 2023 |
Dec. 31, 2022 |
---|---|---|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of interest rate swaps | $ 100.0 | $ 102.4 |
Other current assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of interest rate swaps | 32.5 | 29.6 |
Other long-term assets | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Fair value of interest rate swaps | $ 67.4 | $ 72.8 |
FINANCIAL INSTRUMENTS AND FAIR VALUE (Schedule of Derivative Instruments Effect on the Consolidated Income Statement, Including Accumulated Other Comprehensive Income) (Details) - Interest Rate Swap - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Results Recognized in Accumulated Other Comprehensive Income/(Loss) | $ 8.3 | $ 30.3 | $ (18.8) | $ 75.7 |
Other interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | $ (8.7) | $ (16.4) | ||
Other interest expense, net | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | $ 1.7 | $ 4.8 |
Fair Value Measures and Disclosures (Details) - USD ($) $ in Millions |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Fair Value Disclosures [Abstract] | ||||
Results Recognized in Accumulated Other Comprehensive Income/(Loss) | $ (1.5) | $ (0.4) | $ (4.1) | $ (2.8) |
Amount Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings | $ 0.2 | $ (0.4) | $ 0.1 | $ (0.7) |
SUPPLEMENTAL CASH FLOW INFORMATION (Details) - USD ($) $ in Millions |
6 Months Ended | |
---|---|---|
Jun. 30, 2023 |
Jun. 30, 2022 |
|
Supplemental Cash Flow Information [Abstract] | ||
Interest payments made including amounts capitalized | $ 73.2 | $ 74.4 |
Loaner vehicles transferred from other current assets to inventory | $ 197.9 | $ 128.7 |
SEGMENT INFORMATION (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2023
USD ($)
|
Jun. 30, 2022
USD ($)
|
Jun. 30, 2023
USD ($)
segment
|
Jun. 30, 2022
USD ($)
|
Dec. 31, 2022
USD ($)
|
|
Business Acquisition [Line Items] | |||||
Number of reportable segments | segment | 2 | ||||
Revenue | $ 3,742.5 | $ 3,950.1 | $ 7,324.8 | $ 7,862.0 | |
Gross profit | 713.1 | 802.7 | 1,409.3 | 1,594.7 | |
Total assets | 8,165.9 | 8,165.9 | $ 8,021.4 | ||
Intersegment Eliminations | |||||
Business Acquisition [Line Items] | |||||
Revenue | (46.4) | (31.8) | (91.0) | (71.4) | |
Gross profit | 7.5 | 2.4 | 2.9 | 0.1 | |
Total assets | 6.5 | 6.5 | (18.6) | ||
Dealerships | |||||
Business Acquisition [Line Items] | |||||
Revenue | 3,718.8 | 3,930.0 | 7,275.1 | 7,824.2 | |
Gross profit | 686.0 | 793.7 | 1,365.6 | 1,575.1 | |
Total assets | 7,300.1 | 7,300.1 | 7,170.8 | ||
TCA | |||||
Business Acquisition [Line Items] | |||||
Revenue | 70.1 | 51.9 | 140.7 | 109.2 | |
Gross profit | 19.6 | $ 6.6 | 40.8 | $ 19.5 | |
Total assets | $ 859.3 | $ 859.3 | $ 869.2 |
COMMITMENTS AND CONTINGENCIES (Details) - Guarantee Obligations $ in Millions |
Jun. 30, 2023
USD ($)
|
---|---|
Loss Contingencies [Line Items] | |
Amount of surety bond line maintained | $ 18.3 |
Reastated Credit Agreement | Bank of America, N.A. | |
Loss Contingencies [Line Items] | |
Amount of letters of credit outstanding | $ 14.0 |
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