Segment Information

12 Months Ended

Dec. 31, 2016

Segment Information

Segment Information

22. Segment Information

At December 31, 2016, 2015, and 2014, the Company had two reportable segments: (1) Consumer Services and Plans, and (2) Retail. The Company’s Consumer Services and Plans segment is comprised of emergency roadside assistance; property and casualty insurance programs; travel assist programs; extended vehicle service contracts; co‑branded credit cards; vehicle financing and refinancing; membership clubs; and publications and directories. The Company’s Retail segment is comprised of new vehicles; used vehicles; parts and service; and finance and insurance. Corporate and other is comprised of the corporate operations of the Company.

The reportable segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by the Company’s chief operating decision maker to allocate resources and assess performance. The Company’s chief operating decision maker is its Chief Executive Officer.

Reportable segment revenue, segment income, floor plan interest expense, depreciation and amortization, other interest expense, net, total assets, and capital expenditures are as follows:

	Year Ended December 31,
($ in thousands)	2016		2015		2014
Revenue:
Consumer Services and Plans	$	184,773	$	174,600	$	162,598
Retail (1)		3,341,933		3,111,494		2,472,400
Total consolidated revenue	$	3,526,706	$	3,286,094	$	2,634,998

(1) The Company has adjusted certain prior period amounts for the correction of an immaterial error. See Note 1 — Summary of Significant Accounting Policies — Revisions to Prior Periods.

	Year Ended December 31,
($ in thousands)	2016		2015		2014
Segment income (1):
Consumer Services and Plans	$	89,046	$	80,522	$	73,515
Retail (2)		203,763		179,530		128,084
Total segment income		292,809		260,052		201,599
Corporate & other		(4,382)		(2,689)		(2,597)
Depreciation and amortization		(24,695)		(24,101)		(24,601)
Other interest expense, net		(48,318)		(53,377)		(46,769)
Loss and expense on debt restructure		(6,270)		—		(1,831)
Other income (expense), net		—		1		(35)
Income from operations before income taxes	$	209,144	$	179,886	$	125,766

(1) Segment income is defined as income from operations before depreciation and amortization plus floor plan interest expense.

(2) The Company has adjusted certain prior period amounts for the correction of an immaterial error. For the year ended December 31, 2014, segment income for the Company’s Retail segment was originally reported as $129.6 million. After the correction of the immaterial error of $1.5 million, segment income for the Company’s Retail segment was $128.1 million for the year ended December 31, 2014. See Note 1 — Summary of Significant Accounting Policies — Revisions to Prior Periods.

	Year Ended December 31,
($ in thousands)	2016		2015		2014
Depreciation and amortization:
Consumer Services and Plans	$	3,780	$	3,627	$	3,283
Retail		20,915		18,243		19,895
Total		24,695		21,870		23,178
Corporate & other		—		2,231		1,423
Total depreciation and amortization	$	24,695	$	24,101	$	24,601

	Years ended December 31,
	2016		2015		2014
Interest expense, net:
Consumer Services and Plans	$	19	$	32	$	62
Retail		5,395		16,015		12,060
Total		5,414		16,047		12,122
Corporate & other		42,904		37,330		34,647
Total interest expense	$	48,318	$	53,377	$	46,769

	As of December 31,
	2016		2015		2014
Assets:
Consumer Services and Plans	$	152,689	$	139,064	$	138,240
Retail (1)		1,235,250		1,143,916		946,395
Total		1,387,939		1,282,980		1,084,635
Corporate & other		175,826		55,125		72,620
Total assets	$	1,563,765	$	1,338,105	$	1,157,255

(1) The Company has adjusted certain prior period amounts for the correction of an immaterial error. Retail segment assets decreased $5.9 million as of December 31, 2015 and 2014. See Note 1 — Summary of Significant Accounting Policies — Revisions to Prior Periods.

	Year Ended December 31,
	2016		2015		2014
Capital expenditures:
Consumer Services and Plans	$	2,951	$	2,870	$	2,721
Retail		36,831		38,567		32,263
Total capital expenditures	$	39,782	$	41,437	$	34,984