Segment Information

12 Months Ended

Dec. 31, 2012

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

At December 31, 2012, 2011, and 2010, we had three operating and reportable segments: (1) Domestic, (2) Import, and (3) Premium Luxury. As of March 31, 2012, we revised the basis of segmentation of our Import and Premium Luxury segments to reclassify Audi franchises from the Import segment to the Premium Luxury segment. In connection with this change, we reclassified historical amounts to conform to our current segment presentation. We reclassified revenue of $187.7 million and segment income of $13.2 million for 2011, and revenue of $126.2 million and segment income of $11.3 million for 2010 related to the five Audi franchises we held during these periods.

Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford, and Chrysler. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, and Lexus. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products.

“Corporate and other” is comprised of our other businesses, including collision centers, a customer lead generation business, and an auction operation, each of which generates revenues, as well as unallocated corporate overhead expenses and retrospective commissions for certain financing and insurance transactions that we arrange under agreements with third parties.

The operating 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 our chief operating decision maker to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer. We have determined that our three operating segments also represent our reportable segments.

Reportable segment revenue, segment income, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures are as follows:

	Years Ended December 31,
	2012		2011		2010
Revenues:
Domestic	$	5,131.6	$	4,655.4	$	4,111.3
Import	5,828.8		4,933.3		4,582.2
Premium Luxury	4,553.3		4,096.4		3,635.2
Total segment income	15,513.7		13,685.1		12,328.7
Corporate and other	155.1		147.2		132.3
Total consolidated revenue	$	15,668.8	$	13,832.3	$	12,461.0

	Years Ended December 31,
	2012			2011			2010
Segment income*:
Domestic	$	209.4		$	180.0		$	152.7
Import	257.9			227.1			188.2
Premium Luxury	270.4			244.1			219.7
Total segment income	737.7			651.2			560.6
Corporate and other	(137.9		)	(121.9		)	(106.5		)
Other interest expense	(86.9		)	(66.0		)	(56.1		)
Loss on debt extinguishment	—			(2.2		)	(19.6		)
Interest income	0.3			0.7			1.4
Other income (losses), net	3.6			(0.5		)	1.5
Income from continuing operations before income taxes	$	516.8		$	461.3		$	381.3

*Segment income for each of our segments is defined as operating income less floorplan interest expense.

	Years Ended December 31,
	2012		2011		2010
Floorplan interest expense:
Domestic	$	20.2	$	20.4	$	19.3
Import	14.2		11.2		12.7
Premium Luxury	10.7		9.7		9.2
Corporate and other	0.4		1.4		1.3
Total floorplan interest expense	$	45.5	$	42.7	$	42.5
	Years Ended December 31,
	2012		2011		2010
Depreciation and amortization:
Domestic	$	23.0	$	20.7	$	20.3
Import	25.0		22.4		19.6
Premium Luxury	25.1		23.4		18.2
Corporate and other	14.2		17.2		18.7
Total depreciation and amortization	$	87.3	$	83.7	$	76.8

	Years Ended December 31,
	2012		2011		2010
Assets:
Domestic	$	1,883.8	$	1,557.7	$	1,447.7
Import	1,769.2		1,480.0		1,481.5
Premium Luxury	1,513.8		1,285.4		1,217.1
Corporate and other:
Goodwill	1,237.4		1,172.2		1,142.1
Franchise rights	285.7		212.6		199.1
Other Corporate and other assets	513.1		490.9		486.7
Total assets	$	7,203.0	$	6,198.8	$	5,974.2

	Years Ended December 31,
	2012		2011		2010
Capital expenditures:
Domestic	$	69.5	$	31.7	$	23.2
Import	55.2		60.6		39.5
Premium Luxury	33.1		55.5		79.5
Corporate and other	25.8		10.3		19.6
Total capital expenditures	$	183.6	$	158.1	$	161.8