18. Segments Information

During the quarter ended September 30, 2018, the Company’s board of directors appointed Brent Moody, formerly the Chief Operating and Legal Officer, as President of the Company. In this new role, the Company determined that Mr. Moody now performs the role of chief operating decision maker together with the Chief Executive Officer. Additionally, responsibilities of certain members of senior management of the Company were realigned to maximize the contributions of the Company’s recent acquisitions of Retail businesses. As a result of these changes, the Company has determined that its reportable segments have changed. The Company’s new reportable segments have been identified based on various commonalities amongst the Company’s individual product lines, which is consistent with the Company’s operating structure and associated management structure and management evaluates the performance of and allocates resources to these segments based on segment revenues and segment profit. The segment reporting for prior comparative periods have been recasted to conform to the current period presentation.

The Company previously had two reportable segments: (i) Consumer Services and Plans; and (ii) Retail. Following the realignment, the Company now has three reportable segments: (i) Consumer Services and Plans, (ii) Dealership, and (iii) Retail. The Company’s Consumer Services and Plans segment remains the same as prior periods and primarily derives revenue from the sale of emergency roadside assistance; property and casualty insurance programs; travel assist programs; extended vehicle service contracts; co-branded credit cards; vehicle financing and refinancing; club memberships; and publications and directories. The Company has separated the prior Retail segment into two distinct segments: Dealership and Retail. The Company’s Dealership segment primarily derives revenue from the sale of new and used RVs, parts, service and other, and finance and insurance products. The Company’s Retail segment primarily derives revenue from the sale of the following: products, parts, service and other, including RV accessories and supplies; and camping, hunting, fishing, skiing, snowboarding, bicycling, skateboarding, marine and watersport equipment and supplies. As noted above, both the Dealership and Retail segments derive revenue from the sale of parts, services and other revenues since certain retail locations without associated dealerships have the capability to perform RV repair and maintenance services. Additionally, certain RV parts and accessories can be sold to customers at a dealership or retail location. The revenues and related costs of revenues for these parts and services are recorded in the segment that enters into the transaction with the customer, either Dealership or Retail. 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 a group comprised of the Chief Executive Officer and the President.

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 September 30, 2018										Three Months Ended September 30, 2017
	Consumer										Consumer
	Services						Intersegment				Services						Intersegment
($ in thousands)	and Plans(1)		Dealership(1)		Retail(1)		Eliminations		Total		and Plans(1)		Dealership(1)		Retail(1)		Eliminations		Total
Revenue:
Consumer services and plans	$	52,226	$	—	$	—	$	(182)	$	52,044	$	46,342	$	—	$	—	$	(173)	$	46,169
New vehicles		—		699,263		—		(1,946)		697,317		—		714,966		—		(1,604)		713,362
Used vehicles		—		198,555		—		(798)		197,757		—		188,547		—		(1,084)		187,463
Dealership parts, services and other		—		71,607		—		—		71,607		—		66,847		—		—		66,847
Finance and insurance, net		—		112,477		—		(3,018)		109,459		—		103,135		—		(2,277)		100,858
Retail		—		—		218,977		(34,434)		184,543		—		—		152,016		(31,113)		120,903
Total consolidated revenue	$	52,226	$	1,081,902	$	218,977	$	(40,378)	$	1,312,727	$	46,342	$	1,073,495	$	152,016	$	(36,251)	$	1,235,602

	Nine Months Ended September 30, 2018										Nine Months Ended September 30, 2017
	Consumer										Consumer
	Services						Intersegment				Services						Intersegment
($ in thousands)	and Plans(1)		Dealership(1)		Retail(1)		Eliminations		Total		and Plans(1)		Dealership(1)		Retail(1)		Eliminations		Total
Revenue:
Consumer services and plans	$	160,509	$	—	$	—	$	(1,909)	$	158,600	$	145,932	$	—	$	—	$	(1,414)	$	144,518
New vehicles		—		2,090,364		—		(6,018)		2,084,346		—		1,982,644		—		(5,172)		1,977,472
Used vehicles		—		582,816		—		(2,322)		580,494		—		531,324		—		(2,427)		528,897
Dealership parts, services and other		—		210,024		—		—		210,024		—		185,586		—		—		185,586
Finance and insurance, net		—		334,288		—		(8,920)		325,368		—		273,222		—		(6,015)		267,207
Retail		—		—		557,465		(96,828)		460,637		—		—		381,449		(88,866)		292,583
Total consolidated revenue	$	160,509	$	3,217,492	$	557,465	$	(115,997)	$	3,819,469	$	145,932	$	2,972,776	$	381,449	$	(103,894)	$	3,396,263

⁽¹⁾

Segment revenue includes intersegment revenue.


	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
($ in thousands)	2018		2017		2018		2017
Segment income:(1)
Consumer services and plans	$	26,018	$	21,675	$	81,732	$	71,887
Dealership		85,529		97,116		262,215		259,710
Retail		(20,674)		(5,122)		(79,668)		(4,531)
Total segment income		90,873		113,669		264,279		327,066
Corporate & other		(1,606)		(2,037)		(4,570)		(6,461)
Depreciation and amortization		(13,179)		(8,382)		(34,207)		(22,819)
Other interest expense, net		(16,794)		(11,012)		(45,740)		(30,973)
Tax Receivable Agreement liability adjustment		—		(96)		—		(79)
Loss and expense on debt restructure		—		—		(2,056)		—
Income before income taxes	$	59,294	$	92,142	$	177,706	$	266,734

⁽¹⁾

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


	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
($ in thousands)	2018		2017		2018		2017
Depreciation and amortization:
Consumer services and plans	$	951	$	888	$	2,546		2,889
Dealership		3,975		3,466		11,676		10,130
Retail		8,058		3,800		19,790		9,457
Subtotal		12,984		8,154		34,012		22,476
Corporate & other		195		228		195		343
Total depreciation and amortization	$	13,179	$	8,382	$	34,207	$	22,819


	Three Months Ended				Nine Months Ended
	September 30,		September 30,		September 30,		September 30,
($ in thousands)	2018		2017		2018		2017
Other interest expense, net:
Consumer services and plans	$	1	$	1	$	(1)	$	5
Dealership		1,183		876		3,626		2,916
Retail		178		547		558		1,459
Subtotal		1,362		1,424		4,183		4,380
Corporate & other		15,432		9,588		41,557		26,593
Total interest expense	$	16,794	$	11,012	$	45,740	$	30,973


	September 30,		December 31,
($ in thousands)	2018		2017

Assets:
Consumer services and plans	$	140,992	$	180,295
Dealership		1,685,916		1,715,084
Retail		775,383		363,451
Subtotal		2,602,291		2,258,830
Corporate & other		224,807		302,647
Total assets	$	2,827,098	$	2,561,477