Segments Information

6 Months Ended

Jun. 30, 2017

Segment Information

Segment Information

17. Segments Information

We have 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; finance and insurance; and marine and watersports products. 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, total assets, and capital expenditures are as follows:

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
($ in thousands)	2017		2016		2017		2016
Revenue:
Consumer Services and Plans	$	48,103	$	45,428	$	98,349	$	90,426
Retail		1,234,564		1,022,427		2,068,133		1,775,177
Total consolidated revenue	$	1,282,667	$	1,067,855	$	2,166,482	$	1,865,603

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
($ in thousands)	2017		2016		2017		2016
Segment income (1):
Consumer Services and Plans	$	23,959	$	22,503	$	50,212	$	44,101
Retail		117,271		82,204		163,267		118,016
Total segment income		141,230		104,707		213,479		162,117
Corporate & other		(3,483)		(711)		(4,424)		(1,329)
Depreciation and amortization		(7,584)		(6,034)		(14,437)		(11,925)
Other interest expense, net		(10,557)		(12,577)		(19,961)		(25,325)
Other income (expense), net		—		—		17		(2)
Income from operations before income taxes	$	119,606	$	85,385	$	174,674	$	123,536

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

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
($ in thousands)	2017		2016		2017		2016
Depreciation and amortization:
Consumer Services and Plans	$	1,005	$	932	$	2,001		1,851
Retail		6,464		5,102		12,321		10,074
Total		7,469		6,034		14,322		11,925
Corporate & other		115		—		115		—
Total depreciation and amortization	$	7,584	$	6,034	$	14,437	$	11,925

	Three Months Ended				Six Months Ended
	June 30,		June 30,		June 30,		June 30,
($ in thousands)	2017		2016		2017		2016
Other interest expense, net:
Consumer Services and Plans	$	2	$	4	$	4	$	8
Retail		1,360		1,376		2,952		2,768
Total		1,362		1,380		2,956		2,776
Corporate & other		9,195		11,197		17,005		22,549
Total interest expense	$	10,557	$	12,577	$	19,961	$	25,325

	June 30,		December 31,
($ in thousands)	2017		2016
Assets:
Consumer Services and Plans	$	116,233	$	152,689
Retail		1,762,936		1,235,250
Total		1,879,169		1,387,939
Corporate & other		387,247		175,826
Total assets	$	2,266,416	$	1,563,765