SEGMENT INFORMATION

At March 31, 2018 and 2017, we had three reportable segments: (1) Domestic, (2) Import, and (3) Premium Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Ford, General Motors, and FCA US. 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, Lexus, and Audi. The franchises in each segment also sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products.

“Corporate and other” is comprised of our other businesses, including collision centers, automotive auctions, and AutoNation USA stand-alone used vehicle sales and service centers, all of which generate revenues but do not meet the quantitative thresholds for determining reportable segments, as well as unallocated corporate overhead expenses and retrospective commissions for certain finance and insurance transactions that we arrange under agreements with third parties.

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 our chief operating decision maker to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer.

The following table provides information on revenues from external customers, intercompany revenues, and segment income of our reportable segments. Intercompany sales, which are eliminated in consolidation, may be based on current market prices, current fair values, or cost plus margin depending on the product type and the markets in which the products are sold.



	Three Months Ended						Three Months Ended
	March 31, 2018						March 31, 2017
	Domestic		Import		Premium Luxury		Domestic		Import		Premium Luxury
Revenues from external customers	$	1,773.7	$	1,652.6	$	1,717.8	$	1,800.8	$	1,631.7	$	1,616.6
Intercompany revenues	140.6		80.9		102.1		138.8		92.0		116.0
Segment income ⁽¹⁾	60.3		72.8		87.7		61.4		71.7		80.5

⁽¹⁾ Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.

The following is a reconciliation of total segment income for reportable segments to our consolidated income from continuing operations before income taxes.



	Three Months Ended
	March 31,
	2018			2017
Total segment income for reportable segments	$	220.8		$	213.6
Corporate and other	(63.3		)	(28.4		)
Other interest expense	(32.3		)	(28.8		)
Interest income	0.2			0.4
Other income, net	0.8			3.0
Income from continuing operations before income taxes	$	126.2		$	159.8