XML 72 R52.htm IDEA: XBRL DOCUMENT v3.19.1
Segments Information (Tables)
 12 Months Ended
Dec. 31, 2018
Segments Information  
Reportable segment revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2018

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Services

 

 

 

 

 

 

Intersegment

 

 

 

($ in thousands)

 

and Plans

 

Dealership

 

Retail

 

Eliminations

    

Total

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer services and plans

 

$

216,033

 

$

 —

 

$

 —

 

$

(1,981)

 

$

214,052

New vehicles

 

 

 —

 

 

2,520,015

 

 

 —

 

 

(7,161)

 

 

2,512,854

Used vehicles

 

 

 —

 

 

734,938

 

 

 —

 

 

(2,921)

 

 

732,017

Dealership parts, services and other

 

 

 —

 

 

279,438

 

 

 —

 

 

 —

 

 

279,438

Finance and insurance, net

 

 

 —

 

 

394,214

 

 

 —

 

 

(10,503)

 

 

383,711

Retail

 

 

 —

 

 

 —

 

 

791,970

 

 

(122,025)

 

 

669,945

Total consolidated revenue

 

$

216,033

 

$

3,928,605

 

$

791,970

 

$

(144,591)

 

$

4,792,017

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2017

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Services

 

 

Dealership

 

 

 

Intersegment

 

 

 

($ in thousands)

 

and Plans(1)

 

(1) (2)

 

Retail(1)(2)

 

Eliminations

    

Total

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer services and plans

 

$

197,100

 

$

 —

 

$

 —

 

$

(1,486)

 

$

195,614

New vehicles

 

 

 —

 

 

2,442,157

 

 

 —

 

 

(6,229)

 

 

2,435,928

Used vehicles

 

 

 —

 

 

671,885

 

 

 —

 

 

(3,025)

 

 

668,860

Dealership parts, services and other

 

 

 —

 

 

246,898

 

 

 —

 

 

 —

 

 

246,898

Finance and insurance, net

 

 

 —

 

 

333,988

 

 

 —

 

 

(7,379)

 

 

326,609

Retail

 

 

 —

 

 

 —

 

 

517,200

 

 

(111,279)

 

 

405,921

Total consolidated revenue

 

$

197,100

 

$

3,694,928

 

$

517,200

 

$

(129,398)

 

$

4,279,830

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2016

 

 

Consumer

 

 

 

 

 

 

 

 

 

 

 

 

 

Services

 

 

Dealership

 

 

 

Intersegment

 

 

 

($ in thousands)

 

and Plans(1)

 

(1) (2)

 

Retail(1)(2)

 

Eliminations

    

Total

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consumer services and plans

 

$

186,868

 

$

 —

 

$

 —

 

$

(2,095)

 

$

184,773

New vehicles

 

 

 —

 

 

1,866,182

 

 

 —

 

 

(3,987)

 

 

1,862,195

Used vehicles

 

 

 —

 

 

705,893

 

 

 —

 

 

(2,567)

 

 

703,326

Dealership parts, services and other

 

 

 —

 

 

220,422

 

 

 —

 

 

 —

 

 

220,422

Finance and insurance, net

 

 

 —

 

 

231,861

 

 

 —

 

 

(5,867)

 

 

225,994

Retail

 

 

 —

 

 

 —

 

 

429,816

 

 

(110,219)

 

 

319,597

Total consolidated revenue

 

$

186,868

 

$

3,024,358

 

$

429,816

 

$

(124,735)

 

$

3,516,307

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1)

The Company has adjusted certain prior period amounts for the immaterial correction of errors. See Note 1 — Summary of Significant Accounting Policies — Revisions for Correction of Immaterial Errors.

(2)

The Company has adjusted certain prior period amounts for the immaterial correction of errors. For the years ended December 31, 2017 and 2016, segment revenue for the Company’s Retail segment, which was previously presented with combined Dealership and Retail segments, was originally reported as $4.1 billion and $3.3 billion, respectively. After correction of the errors totaling $5.4 million and $2.7 million for the years ended December 31, 2017 and 2016, segment revenue for the Company’s combined Dealership and Retail segments remained at $4.1 billion and $3.3 billion, respectively. See Note 1 — Summary of Significant Accounting Policies — Revisions for Correction of Immaterial Errors.

 

Reportable segment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

 

($ in thousands)

   

2018

   

2017

   

2016

  

Segment income:(1)

 

 

 

 

 

 

 

 

 

 

Consumer services and plans

 

$

110,517

 

$

98,371

 

$

89,046

 

Dealership (2)

 

 

265,824

 

 

290,607

 

 

198,840

 

Retail (2)

 

 

(157,118)

 

 

(23,408)

 

 

55

 

Total segment income

 

 

219,223

 

 

365,570

 

 

287,941

 

Corporate & other

 

 

(6,821)

 

 

(5,373)

 

 

(4,382)

 

Depreciation and amortization

 

 

(49,322)

 

 

(31,545)

 

 

(24,695)

 

Other interest expense, net

 

 

(63,329)

 

 

(42,959)

 

 

(48,318)

 

Tax Receivable Agreement liability adjustment

 

 

(1,324)

 

 

100,758

 

 

 —

 

Loss and expense on debt restructure

 

 

(2,056)

 

 

(849)

 

 

(6,270)

 

Income before income taxes

 

$

96,371

 

$

385,602

 

$

204,276

 

 

(1)

Segment income is defined as income from operations before depreciation and amortization plus floor plan interest expense. The Company has recast certain prior period amounts to conform to the three segments presented in 2018.

(2)

The Company has adjusted certain prior period amounts for the immaterial correction of errors. For the years ended December 31, 2017 and 2016, segment income for the Company’s Retail segment, which was previously presented with combined Dealership and Retail segments, was originally reported as $272.6 million and $201.6 million, respectively. After correction of the errors totaling $5.4 million and $2.7 million for the years ended December 31, 2017 and 2016, segment income for the Company’s combined Dealership and Retail segments was $267.2 million and $198.9 million, respectively. See Note 1 — Summary of Significant Accounting Policies — Revisions for Correction of Immaterial Errors.
Reportable depreciation and amortization and other interest expense, net

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

 

($ in thousands)

    

2018

    

2017

    

2016

 

Depreciation and amortization:

 

 

 

 

 

 

 

 

 

 

Consumer services and plans

 

$

3,435

 

$

3,688

 

$

3,780

 

Dealership

 

 

17,124

 

 

13,792

 

 

11,679

 

Retail

 

 

28,175

 

 

14,065

 

 

9,236

 

Subtotal

 

 

48,734

 

 

31,545

 

 

24,695

 

Corporate & other

 

 

588

 

 

 —

 

 

 —

 

Total depreciation and amortization

 

$

49,322

 

$

31,545

 

$

24,695

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Years ended December 31, 

 

($ in thousands)

    

2018

    

2017

    

2016

    

Other interest expense, net:

 

 

 

 

 

 

 

 

 

 

Consumer services and plans

 

$

 4

 

$

(2)

 

$

19

 

Dealership

 

 

4,858

 

 

3,775

 

 

3,562

 

Retail

 

 

3,215

 

 

2,108

 

 

1,833

 

Subtotal

 

 

8,077

 

 

5,881

 

 

5,414

 

Corporate & other

 

 

55,252

 

 

37,078

 

 

42,904

 

Total interest expense

 

$

63,329

 

$

42,959

 

$

48,318

 

 

Reportable segment assets

 

 

 

 

 

 

 

 

 

 

 

 

 

As of December 31, 

 

($ in thousands)

    

2018

    

2017

    

2016

    

Assets:

 

 

 

 

 

 

 

 

 

 

Consumer services and plans

 

$

174,623

 

$
180,295

 

$
152,689

 

Dealership

 

 

1,736,525

 

 
1,718,228

 

 
1,081,638

 

Retail

 

 

702,383

 

 
360,546

 

 
147,318

 

Subtotal

 

 

2,613,531

 

 

2,259,069

 

 

1,381,645

 

Corporate & other

 

 

193,156

 

 
307,957

 

 
74,416

 

Total assets 

 

$

2,806,687

 

$
2,567,026

 

$
1,456,061

 

 

(1)

The Company has adjusted certain prior period amounts for the immaterial correction of errors. Retail segment assets increased $0.2 million and $0.2 million as of December 31, 2017 and 2016, respectively, and Corporate & other assets increased $5.3 million and $0 million as of December 31, 2017 and 2016, respectively. See Note 1 — Summary of Significant Accounting Policies — Revisions for Correction of Immaterial Errors.

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 

 

($ in thousands)

   

2018

   

2017

   

2016

 

Capital expenditures:

 

 

 

 

 

 

 

 

 

 

Consumer Services and Plans

 

$

2,741

 

$

3,358

 

$
3,136

 

Dealership

 

 

91,961

 

 

43,588

 

 
42,506

 

Retail

 

 

159,657

 

 

33,825

 

 
11,301

 

Total capital expenditures

 

$

254,359

 

$
80,771

 

$
56,943

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of the effect of the error corrections on the statements of reportable segment revenue and segment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year Ended December 31, 2017

 

Year Ended December 31, 2016

($ in thousands except per share amounts)

    

As Reported

    

Adjustment

    

As Corrected

    

As Reported

    

Adjustment

    

As Corrected

Revenue:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealership segment

 

$

3,700,353

 

$

(5,425)

 

$

3,694,928

 

$

3,027,048

 

$

(2,690)

 

$

3,024,358

Total consolidated revenue

 

 

4,285,255

 

 

(5,425)

 

 

4,279,830

 

 

3,518,997

 

 

(2,690)

 

 

3,516,307

Segment income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dealership

 

 

296,032

 

 

(5,425)

 

 

290,607

 

 

201,530

 

 

(2,690)

 

 

198,840

Total segment income

 

 

370,995

 

 

(5,425)

 

 

365,570

 

 

290,631

 

 

(2,690)

 

 

287,941

Income from operations before income taxes

 

 

389,956

 

 

(4,354)

 

 

385,602

 

 

206,966

 

 

(2,690)

 

 

204,276