Lithia Motors (LAD) 10-Q 2 Aug 17 2017 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Aug. 02, 2017
Document Information [Line Items]
Entity Registrant Name	LITHIA MOTORS INC
Entity Central Index Key	1,023,128
Trading Symbol	lad
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		24,022,953
Class B common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		1,000,000

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 31,177	$ 50,282
Accounts receivable, net of allowance for doubtful accounts of $6,457 and $5,281	359,010	417,714
Inventories, net	1,878,780	1,772,587
Other current assets	54,801	46,611
Total Current Assets	2,323,768	2,287,194
Property and equipment, net of accumulated depreciation of $184,283 and $167,300	1,067,104	1,006,130
Goodwill	259,399	259,399
Franchise value	184,763	184,268
Other non-current assets	141,461	107,159
Total Assets	3,976,495	3,844,150
Current Liabilities:
Floor plan notes payable	99,932	94,602
Floor plan notes payable: non-trade	1,534,715	1,506,895
Current maturities of long-term debt	20,901	20,965
Trade payables	89,795	88,423
Accrued liabilities	212,309	211,109
Total Current Liabilities	1,957,652	1,921,994
Long-term debt, less current maturities	777,814	769,916
Deferred revenue	92,335	81,929
Deferred income taxes	57,919	59,075
Other long-term liabilities	102,948	100,460
Total Liabilities	2,988,668	2,933,374
Stockholders' Equity:
Preferred stock - no par value; authorized 15,000 shares; none outstanding	0	0
Additional paid-in capital	34,280	41,225
Retained earnings	794,863	703,820
Total Stockholders' Equity	987,827	910,776
Total Liabilities and Stockholders' Equity	3,976,495	3,844,150
Class A common stock
Stockholders' Equity:
Common stock: Class A and Class B	158,527	165,512
Class B common stock
Stockholders' Equity:
Common stock: Class A and Class B	$ 157	$ 219

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Allowance for doubtful accounts	$ 6,457	$ 5,281
Accumulated depreciation	$ 184,283	$ 167,300
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	15,000,000	15,000,000
Preferred stock, shares outstanding (in shares)	0	0
Class A common stock
Common stock A and B, par value (in dollars per share)	$ 0	$ 0
Common stock A and B, shares authorized (in shares)	100,000,000	100,000,000
Common stock A and B, shares issued and outstanding (in shares)	23,757,000	23,382,000
Class B common stock
Common stock A and B, par value (in dollars per share)	$ 0	$ 0
Common stock A and B, shares authorized (in shares)	25,000,000	25,000,000
Common stock A and B, shares issued and outstanding (in shares)	1,262,000	1,762,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Revenues:
Total revenues	$ 2,467,036	$ 2,133,339	$ 4,703,137	$ 4,116,200
Cost of sales:
Total cost of sales	2,091,765	1,811,303	3,986,214	3,486,982
Gross profit	375,271	322,036	716,923	629,218
Asset impairments	0	3,498	0	6,996
Selling, general and administrative	257,290	215,526	500,062	434,632
Depreciation and amortization	14,031	12,503	26,770	24,166
Operating income	103,950	90,509	190,091	163,424
Floor plan interest expense	(9,332)	(6,209)	(17,384)	(12,118)
Other interest expense, net	(7,169)	(5,502)	(13,840)	(10,961)
Other income (expense), net	387	(1,495)	10,232	(3,021)
Income before income taxes	87,836	77,303	169,099	137,324
Income tax provision	(34,636)	(25,875)	(65,172)	(45,626)
Net income	$ 53,200	$ 51,428	$ 103,927	$ 91,698
Basic net income per share (in dollars per share)	$ 2.12	$ 2.02	$ 4.14	$ 3.58
Shares used in basic per share calculations (in shares)	25,053	25,462	25,116	25,639
Diluted net income per share (in dollars per share)	$ 2.12	$ 2.01	$ 4.13	$ 3.56
Shares used in diluted per share calculations (in shares)	25,106	25,534	25,177	25,754
Cash dividends declared per Class A and Class B share (in dollars per share)	$ 0.27	$ 0.25	$ 0.52	$ 0.45
New vehicle
Revenues:
Total revenues	$ 1,384,055	$ 1,209,037	$ 2,594,359	$ 2,305,092
Cost of sales:
Total cost of sales	1,303,516	1,136,175	2,443,702	2,165,464
Used vehicle retail
Revenues:
Total revenues	633,635	553,647	1,235,858	1,086,373
Cost of sales:
Total cost of sales	559,129	486,422	1,092,569	954,871
Used vehicle wholesale
Revenues:
Total revenues	69,512	66,714	141,015	131,860
Cost of sales:
Total cost of sales	67,800	65,228	137,786	128,544
Finance and insurance
Revenues:
Total revenues	94,851	81,043	181,628	158,681
Service, body and parts
Revenues:
Total revenues	246,005	202,265	478,579	398,940
Cost of sales:
Total cost of sales	123,525	103,666	242,905	204,222
Fleet and other
Revenues:
Total revenues	38,978	20,633	71,698	35,254
Cost of sales:
Total cost of sales	$ 37,795	$ 19,812	$ 69,252	$ 33,881

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 53,200	$ 51,428	$ 103,927	$ 91,698
Other comprehensive income, net of tax:
Gain on cash flow hedges, net of tax expense of $0, $72, $0, and $175, respectively	0	114	0	277
Comprehensive income	$ 53,200	$ 51,542	$ 103,927	$ 91,975

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Gain on cash flow hedges, tax expense	$ 0	$ 72	$ 0	$ 175

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Cash flows from operating activities:
Net income	$ 103,927	$ 91,698
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairments	0	6,996
Depreciation and amortization	26,770	24,166
Stock-based compensation	5,432	6,018
(Gain) loss on disposal of other assets	256	(4,512)
Gain on disposal of franchise	0	(1,102)
Deferred income taxes	(1,156)	5,704
(Increase) decrease (net of acquisitions and dispositions):
Trade receivables, net	70,908	6,564
Inventories	(36,078)	(114,052)
Other assets	479	5,652
Increase (decrease) (net of acquisitions and dispositions):
Floor plan notes payable	1,330	8,685
Trade payables	414	6,678
Accrued liabilities	(3,684)	17,595
Other long-term liabilities and deferred revenue	9,957	10,668
Net cash provided by operating activities	178,555	70,758
Cash flows from investing activities:
Capital expenditures	(32,266)	(43,247)
Proceeds from sales of assets	2,870	197
Cash paid for other investments	(7,748)	(16,690)
Cash paid for acquisitions, net of cash acquired	(88,075)	(18,807)
Proceeds from sales of stores	0	11,837
Net cash used in investing activities	(125,219)	(66,710)
Cash flows from financing activities:
(Repayments) borrowings on floor plan notes payable, net: non-trade	(32,124)	58,622
Borrowings on lines of credit	773,500	487,623
Repayments on lines of credit	(808,846)	(468,955)
Proceeds from issuance of long-term debt	74,065	12,080
Proceeds from issuance of common stock	3,519	3,329
Repurchase of common stock	(24,913)	(104,858)
Dividends paid	(13,052)	(11,524)
Net cash used in financing activities	(72,441)	(34,012)
Decrease in cash and cash equivalents	(19,105)	(29,964)
Cash and cash equivalents at beginning of period	50,282	45,008
Cash and cash equivalents at end of period	31,177	15,044
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	33,476	24,960
Cash paid during the period for income taxes, net	62,274	9,684
Floor plan debt paid in connection with store disposals	0	5,284
Supplemental schedule of non-cash activities:
Debt issued in connection with acquisitions	1,748	0
Non-cash assets transferred in connection with acquisitions	0	2,637
Debt assumed in connection with acquisitions	11,837	0
Issuance of class A common stock in connection with acquisitions	2,137	0
Principal payments on long-term debt and capital leases, scheduled
Cash flows from financing activities:
Principal payments on long-term debt	(8,825)	(8,026)
Principal payments on long-term debt and capital leases, other
Cash flows from financing activities:
Principal payments on long-term debt	$ (35,765)	$ (2,303)

Interim Financial Statements

Interim Financial Statements	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interim Financial Statements	Interim Financial Statements Basis of Presentation These condensed Consolidated Financial Statements contain unaudited information as of June 30, 2017 and for the three and six months ended June 30, 2017 and 2016 . The unaudited interim financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain disclosures required by accounting principles generally accepted in the United States of America for annual financial statements are not included herein. In management’s opinion, these unaudited financial statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the information when read in conjunction with our 2016 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2016 is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2017 . The interim condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our 2016 Annual Report on Form 10-K. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying condensed Consolidated Financial Statements to maintain consistency and comparability between periods presented. These reclassifications were related to our adoption of ASU 2016-09, "Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting." Specifically, we reclassified the presentation of excess tax benefits on our Consolidated Statements of Cash Flows between financing and operating cash flows and recorded reclassifications between additional paid-in capital and retained earnings. See also Note 12.

Accounts Receivable

Accounts Receivable	6 Months Ended
	Jun. 30, 2017
Accounts Receivable, Net [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable consisted of the following (in thousands): June 30, 2017 December 31, 2016 Contracts in transit $ 179,556 $ 233,506 Trade receivables 51,009 47,450 Vehicle receivables 40,120 43,937 Manufacturer receivables 73,067 76,948 Auto loan receivables 74,123 69,859 Other receivables 1,057 1,600 418,932 473,300 Less: Allowance (6,457 ) (5,281 ) Less: Long-term portion of accounts receivable, net (53,465 ) (50,305 ) Total accounts receivable, net $ 359,010 $ 417,714 Accounts receivable classifications include the following: • Contracts in transit are receivables from various lenders for the financing of vehicles that we have arranged on behalf of the customer and are typically received approximately ten days after selling a vehicle. • Trade receivables are comprised of amounts due from customers for open charge accounts, lenders for the commissions earned on financing and others for commissions earned on service contracts and insurance products. • Vehicle receivables represent receivables for the portion of the vehicle sales price paid directly by the customer. • Manufacturer receivables represent amounts due from manufacturers, including holdbacks, rebates, incentives and warranty claims. • Auto loan receivables include amounts due from customers related to retail sales of vehicles and certain finance and insurance products. Interest income on auto loan receivables is recognized based on the contractual terms of each loan and is accrued until repayment, charge-off, or repossession. Direct costs associated with loan originations are capitalized and expensed as an offset to interest income when recognized on the loans. All other receivables are recorded at invoice and do not bear interest until they are 60 days past due. The allowance for doubtful accounts is estimated based on our historical write-off experience and is reviewed monthly. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance after all appropriate means of collection have been exhausted and the potential for recovery is considered remote. The annual activity for charges and subsequent recoveries is immaterial. The long-term portion of accounts receivable was included as a component of other non-current assets in the Consolidated Balance Sheets.

Inventories

Inventories	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories The components of inventories, net, consisted of the following (in thousands): June 30, 2017 December 31, 2016 New vehicles $ 1,376,995 $ 1,338,110 Used vehicles 428,361 368,067 Parts and accessories 73,424 66,410 Total inventories $ 1,878,780 $ 1,772,587 Inventories are valued at the lower of net realizable value or cost, using a pooled approach for vehicles and the specific identification method for parts. Certain inventories are valued using the last-in first-out (LIFO) method.

Goodwill and Franchise Value

Goodwill and Franchise Value	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Franchise Value	Goodwill and Franchise Value The changes in the carrying amounts of goodwill are as follows (in thousands): Domestic Import Luxury Consolidated Balance as of December 31, 2015 ¹ $ 97,903 $ 84,384 $ 30,933 $ 213,220 Additions through acquisitions 2 18,154 21,795 7,448 47,397 Reductions through divestitures (1,218 ) — — (1,218 ) Balance as of December 31, 2016 1 114,839 106,179 38,381 259,399 Additions through acquisitions 3 — — — — Balance as of June 30, 2017 ¹ $ 114,839 $ 106,179 $ 38,381 $ 259,399 1 Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008. 2 Our purchase price allocation is preliminary for our acquisition of the Carbone Auto Group. The initial purchase price allocation is subject to change upon final valuation analysis. The primary balances still subject to analysis are the segment allocation of goodwill and other intangible assets. 3 Our purchase price allocation is preliminary for the acquisition of the Baierl Auto Group. Unallocated items, including goodwill and other intangible values, are recorded as a component of other non-current assets in the Consolidated Balance Sheets. See also Note 11. The changes in the carrying amounts of franchise value are as follows (in thousands): Franchise Value Balance as of December 31, 2015 $ 157,699 Additions through acquisitions 1 27,087 Reductions through divestitures (518 ) Balance as of December 31, 2016 184,268 Additions through acquisitions 2 495 Balance as of June 30, 2017 $ 184,763 1 Our purchase price allocation is preliminary for the acquisitions related to the Carbone Auto Group. The initial purchase price allocation is subject to change upon final valuation analysis. The primary balances still subject to analysis are certain intangible assets. 2 Our purchase price allocation is preliminary for the acquisition of the Baierl Auto Group. Unallocated items, including franchise value and other intangible values, are recorded as a component of other non-current assets in the Consolidated Balance Sheets. See also Note 11.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity Repurchases of Class A Common Stock Repurchases of our Class A Common Stock occurred under a repurchase authorization granted by our Board of Directors and related to shares withheld as part of the vesting of restricted stock units ("RSUs"). In February 2016, our Board of Directors authorized the repurchase of up to $250 million of our Class A common stock. Share repurchases under this authorization were as follows: Repurchases Occurring in the Six Months Ended June 30, 2017 Cumulative Repurchases as of June 30, 2017 Shares Average Price Shares Average Price 2016 Share Repurchase Authorization 247,000 $ 87.94 960,725 $ 81.85 As of June 30, 2017 , we had $171.4 million available for repurchases pursuant to our 2016 share repurchase authorization. In addition, during the first six months of 2017 , we repurchased 32,143 shares at an average price of $99.32 per share, for a total of $3.2 million , related to tax withholdings associated with the vesting of RSUs. The repurchase of shares related to tax withholdings associated with stock awards does not reduce the number of shares available for repurchase as approved by our Board of Directors.

Fair Value Measurements

Fair Value Measurements	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Fair Value Disclosures for Financial Assets and Liabilities We determined the carrying value of cash equivalents, accounts receivable, trade payables, accrued liabilities and short-term borrowings approximate their fair values because of the nature of their terms and current market rates of these instruments. We believe the carrying value of our variable rate debt approximates fair value. We have fixed rate debt and calculate the estimated fair value of our fixed rate debt using a discounted cash flow methodology. Using estimated current interest rates based on a similar risk profile and duration (Level 2), the fixed cash flows are discounted and summed to compute the fair value of the debt. As of June 30, 2017 , this debt had maturity dates between December 31, 2017 and December 31, 2050 . There were no changes to our valuation techniques during the six -month period ended June 30, 2017 . A summary of the aggregate carrying values and fair values of our long-term fixed interest rate debt is as follows (in thousands): June 30, 2017 December 31, 2016 Carrying value $ 370,768 $ 286,660 Fair value 368,142 293,522

Net Income Per Share of Class A

Net Income Per Share of Class A and Class B Common Stock	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Net Income Per Share of Class A and Class B Common Stock	Net Income Per Share of Class A and Class B Common Stock We compute net income per share of Class A and Class B common stock using the two-class method. Under this method, basic net income per share is computed using the weighted average number of common shares outstanding during the period excluding common shares underlying equity awards that are unvested or subject to forfeiture. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the common shares issuable upon the net exercise of stock options and unvested RSUs and is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares. Except with respect to voting and transfer rights, the rights of the holders of our Class A and Class B common stock are identical. Under our Articles of Incorporation, the Class A and Class B common stock share equally in any dividends, liquidation proceeds or other distribution with respect to our common stock and the Articles of Incorporation can only be amended by a vote of the shareholders. Additionally, Oregon law provides that amendments to our Articles of Incorporation that would adversely alter the rights, powers or preferences of a given class of stock, must be approved by the class of stock adversely affected by the proposed amendment. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the year had been distributed. Because the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Following is a reconciliation of net income and weighted average shares used for our basic earnings per share (“EPS”) and diluted EPS (in thousands, except per share amounts): Three Months Ended June 30, 2017 2016 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 50,520 $ 2,680 $ 47,869 $ 3,559 Reallocation of net income as a result of conversion of dilutive stock options 1 (1 ) 1 (1 ) Reallocation of net income due to conversion of Class B to Class A common shares outstanding 340 — 440 — Conversion of Class B common shares into Class A common shares 2,334 — 3,109 — Effect of dilutive stock options on net income 5 (5 ) 9 (9 ) Net income applicable to common stockholders - diluted $ 53,200 $ 2,674 $ 51,428 $ 3,549 Weighted average common shares outstanding – basic 23,791 1,262 23,700 1,762 Conversion of Class B common shares into Class A common shares 1,262 — 1,762 — Effect of dilutive stock options on weighted average common shares 53 — 72 — Weighted average common shares outstanding – diluted 25,106 1,262 25,534 1,762 Net income per common share - basic $ 2.12 $ 2.12 $ 2.02 $ 2.02 Net income per common share - diluted $ 2.12 $ 2.12 $ 2.01 $ 2.01 Three Months Ended June 30, 2017 2016 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive 22 — — — Six Months Ended June 30, 2017 2016 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 98,337 $ 5,590 $ 84,445 $ 7,253 Reallocation of distributed net income as a result of conversion of dilutive stock options 2 (2 ) 5 (5 ) Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding 700 — 907 — Conversion of Class B common shares into Class A common shares 4,876 — 6,313 — Effect of dilutive stock options on net income 12 (12 ) 28 (28 ) Net income applicable to common stockholders - diluted $ 103,927 $ 5,576 $ 91,698 $ 7,220 Weighted average common shares outstanding – basic 23,765 1,351 23,611 2,028 Conversion of Class B common shares into Class A common shares 1,351 — 2,028 — Effect of dilutive stock options on weighted average common shares 61 — 115 — Weighted average common shares outstanding – diluted 25,177 1,351 25,754 2,028 Net income per common share - basic $ 4.14 $ 4.14 $ 3.58 $ 3.58 Net income per common share - diluted $ 4.13 $ 4.13 $ 3.56 $ 3.56 Six Months Ended June 30, 2017 2016 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive 11 — 10 —

Equity-Method Investment

Equity-Method Investment	6 Months Ended
	Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity-Method Investment	Equity-Method Investment In October 2014, we acquired a 99.9% membership interest in a limited liability company managed by U.S. Bancorp Community Development Corporation with a total equity contribution of $49.8 million . This investment generated new markets tax credits under the New Markets Tax Credit Program (“NMTC Program”). The NMTC Program was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. While U.S. Bancorp Community Development Corporation exercised management control over the limited liability company, due to the economic interest we held in the entity, we determined our ownership portion of the entity was appropriately accounted for using the equity method. We exited this equity-method investment in December 2016. We estimated the value of our equity-method investment, which was recorded at fair value on a non-recurring basis, based on a market valuation approach. We used prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets. Because these valuations contained unobservable inputs, we classified the measurement of fair value of our equity-method investment as Level 3. The following amounts related to this equity-method investment were recorded in our Consolidated Statements of Operations (in thousands): Three Months Ended June 30, Six Months Ended 2017 2016 2017 2016 Asset impairments to write investment down to fair value $ — $ 3,498 $ — $ 6,996 Our portion of the partnership’s operating losses — 2,065 — 4,131 Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions — 62 — 154 Tax benefits and credits generated — 6,837 — 12,782

Segments

Segments	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Segments	Segments While we have determined that each individual store is a reporting unit, we have aggregated our reporting units into three reportable segments based on their economic similarities: Domestic, Import and Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors and Ford. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Honda, Toyota, Subaru, Nissan and Volkswagen. Our Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by BMW, Mercedes-Benz and Lexus. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products. Corporate and other revenue and income includes the results of operations of our stand-alone body shop offset by unallocated corporate overhead expenses, such as corporate personnel costs, and certain unallocated reserve and elimination adjustments. Additionally, certain internal corporate expense allocations increase segment income for Corporate and other while decreasing segment income for the other reportable segments. These internal corporate expense allocations are used to increase comparability of our dealerships and reflect the capital burden a stand-alone dealership would experience. Examples of these internal allocations include internal rent expense, internal floor plan financing charges, and internal fees charged to offset employees within our corporate headquarters that perform certain dealership functions. We define our chief operating decision maker (“CODM”) to be certain members of our executive management group. Historical and forecasted operational performance is evaluated on a store-by-store basis and on a consolidated basis by the CODM. We derive the operating results of the segments directly from our internal management reporting system. The accounting policies used to derive segment results are substantially the same as those used to determine our consolidated results, except for the internal allocation within Corporate and other discussed above. Our CODM measures the performance of each operating segment based on several metrics, including earnings from operations, and uses these results, in part, to evaluate the performance of, and to allocate resources to, each of the operating segments. Certain financial information on a segment basis is as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Revenues: Domestic $ 954,949 $ 830,410 $ 1,854,707 $ 1,602,312 Import 1,101,314 930,317 2,072,787 1,793,060 Luxury 413,088 371,866 776,891 718,679 2,469,351 2,132,593 4,704,385 4,114,051 Corporate and other (2,315 ) 746 (1,248 ) 2,149 $ 2,467,036 $ 2,133,339 $ 4,703,137 $ 4,116,200 Segment income*: Domestic $ 27,857 $ 28,999 $ 53,299 $ 52,129 Import 32,465 29,680 54,637 53,943 Luxury 10,088 9,730 14,801 14,312 70,410 68,409 122,737 120,384 Corporate and other 38,239 28,394 76,740 55,088 Depreciation and amortization (14,031 ) (12,503 ) (26,770 ) (24,166 ) Other interest expense (7,169 ) (5,502 ) (13,840 ) (10,961 ) Other income (expense), net 387 (1,495 ) 10,232 (3,021 ) Income before income taxes $ 87,836 $ 77,303 $ 169,099 $ 137,324 *Segment income for each of the segments is defined as income before income taxes, depreciation and amortization, other interest expense and other income (expense), net. Three Months Ended Six Months Ended 2017 2016 2017 2016 Floor plan interest expense: Domestic $ 8,716 $ 6,233 $ 16,670 $ 12,729 Import 6,793 4,393 12,666 8,627 Luxury 3,383 2,650 6,459 5,308 18,892 13,276 35,795 26,664 Corporate and other (9,560 ) (7,067 ) (18,411 ) (14,546 ) $ 9,332 $ 6,209 $ 17,384 $ 12,118 June 30, 2017 December 31, 2016 Total assets: Domestic $ 1,253,814 $ 1,225,387 Import 1,037,626 959,355 Luxury 491,627 511,779 Corporate and other 1,193,428 1,147,629 $ 3,976,495 $ 3,844,150

Contingencies

Contingencies	6 Months Ended
	Jun. 30, 2017
Commitments and Contingencies Disclosure [Abstract]
Contingencies	Contingencies Litigation We are party to numerous legal proceedings arising in the normal course of our business. Although we do not anticipate that the resolution of legal proceedings arising in the normal course of business or the proceedings described below will have a material adverse effect on our business, results of operations, financial condition, or cash flows, we cannot predict this with certainty. California Wage and Hour Litigations In June 2012, Mr. Robles and Mr. Laredo brought claims against DCH Tustin Acura (Robles v. Tustin Motors, Inc., Case No. 30-2012-579414, filed in the Superior Court of California, Orange County) alleging that the employer underpaid technicians citing California Wage Order provisions that require an employer to pay at least two times the minimum wage for each hour worked if the employee is required to bring his or her own tools. The plaintiffs amended the complaint in late 2013 to include allegations that the employer failed to pay technicians for non-productive time and time spent performing tasks not compensated by the flat-rate compensation system; off-the-clock time worked; and wages due at termination. The amended complaint also alleged that the employer failed to provide technicians accurate and complete wage statements; and statutory meal and rest periods. The plaintiffs are seeking relief on behalf of all employees at all DCH Auto Group dealerships in California in addition to attorney fees and costs. These plaintiffs (and several other former technicians in separate but partially overlapping actions) also seek relief under California’s Private Attorney General Action (PAGA) provisions, which allow private plaintiffs to recover civil penalties on behalf of the State of California. DCH successfully compelled arbitration based on arbitration agreements between these claimants and the employer, although certain representative claims were excluded and stayed pending arbitration. During the pendency of Robles, related cases were filed that made substantially similar technician claims including Holzer (see below). DCH and the Robles claimants settled their individual claims in mediation in 2015. In April 2016, DCH and all technician plaintiffs in Robles and the related cases agreed in principle to settle the representative claims, and this settlement has been approved by the California courts. DCH Auto Group (USA) Limited must indemnify Lithia Motors, Inc. for losses related to this claim pursuant to the stock purchase agreement between Lithia Motors, Inc. and DCH Auto Group (USA) Limited dated June 14, 2014. We believe the exposure related to this lawsuit, when considered in relation to the terms of the stock purchase agreement, is immaterial to our financial statements. In August 2014, Ms. Holzer filed a complaint in the Central District of California (Holzer v. DCH Auto Group (USA) Inc., Case No. BC558869) alleging that her employer, an affiliate of DCH Auto Group (USA) Inc., failed to provide vehicle finance and sales persons, service advisors, and other clerical and hourly workers accurate and complete wage statements; and statutory meal and rest periods. The complaint also alleges that the employer failed to pay these employees for off-the-clock time worked; and wages due at termination. The plaintiffs also seek attorney fees and costs. DCH has sought to compel arbitration based on plaintiffs’ arbitration agreements. The plaintiffs (and several other employees in separate actions) are seeking relief under California’s PAGA provisions. During the pendency of Holzer, related cases were filed that made substantially similar non-technician claims. DCH and all non-technician claimants settled their individual claims in mediation in 2017. In January 2017, DCH and all non-technician plaintiffs agreed in principle to settle the representative claims, although this settlement has not yet been approved by the California courts as expressly contemplated by the parties and required by applicable law as a condition of the agreed release of claims. DCH Auto Group (USA) Limited must indemnify Lithia Motors, Inc. for losses related to this claim pursuant to the stock purchase agreement between Lithia Motors, Inc. and DCH Auto Group (USA) Limited dated June 14, 2014. We believe the exposure related to this lawsuit, when considered in relation to the terms of the stock purchase agreement, is immaterial to our financial statements.

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Acquisitions	Acquisitions In the first six months of 2017 , we completed the following acquisition: • On May 1, 2017 , Baierl Auto Group, an eight store platform based in Pennsylvania. Revenue and operating income contributed by the 2017 acquisition subsequent to the date of acquisition were as follows (in thousands): Revenue $ 69,445 Operating income $ 2,168 In 2016 , we completed the following acquisitions: • On January 26, 2016, Singh Subaru in Riverside, California. • On February 1, 2016, Ira Toyota in Milford, Massachusetts. • On June 23, 2016, Helena Auto Center, LLC in Helena, Montana. • On August 1, 2016, Kemp Ford in Thousand Oaks, California. • On September 12, 2016, Carbone Auto Group, a nine store platform based in New York and Vermont. • On September 28, 2016, Greiner Ford Lincoln in Casper, Wyoming. • On October 5, 2016, Woodland Hills Audi in Woodland Hills, California. • On November 16, 2016, Honolulu Ford in Honolulu, Hawaii. All acquisitions were accounted for as business combinations under the acquisition method of accounting. The results of operations of the acquired stores are included in our Consolidated Financial Statements from the date of acquisition. The following tables summarize the consideration paid for the 2017 acquisition and the amount of identified assets acquired and liabilities assumed as of the acquisition date (in thousands): Consideration Cash paid, net of cash acquired $ 88,075 Equity securities issued 1 2,137 $ 90,212 1 In partial consideration for the purchase of Baierl Auto Group, we issued 4,489 shares of our class A common stock on May 1, 2017 and will issue an additional 17,957 shares over the next 4 years for a total of 22,446 shares. As of May 1, 2017, these shares were deemed outstanding for purposes of calculating basic and diluted EPS and had a market value of $2.1 million , based on the closing price of our class A common stock on May 1, 2017 of $95.22 per share. See also Note 7. The purchase price allocations for the Baierl Auto Group acquisition are preliminary and we have not obtained and evaluated all of the detailed information necessary to finalize the opening balance sheet amounts in all respects. We recorded the purchase price allocations based upon information that is currently available. Unallocated items are recorded as a component of other non-current assets in the Consolidated Balance Sheets. Assets Acquired and Liabilities Assumed Trade receivables, net $ 12,203 Inventories 78,820 Property and equipment 54,433 Other assets 39,345 Floor plan notes payable (70,960 ) Debt and capital lease obligations (13,585 ) Other liabilities (10,044 ) $ 90,212 In the six months ended June 30, 2017 , we recorded $2.1 million in acquisition expense as a component of selling, general and administrative expense. We did not have any material acquisition expenses for the same period in 2016 . The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three and six -month periods ended June 30, 2017 and 2016 had occurred on January 1, 2016 (in thousands, except per share amounts): Three Months Ended June 30, 2017 2016 Revenue $ 2,502,299 $ 2,452,886 Net income 53,380 54,019 Basic net income per share 2.13 2.12 Diluted net income per share 2.13 2.12 Six Months Ended June 30, 2017 2017 2016 Revenue $ 4,838,047 $ 4,735,415 Net income 104,546 96,687 Basic net income per share 4.16 3.77 Diluted net income per share 4.15 3.75 These amounts have been calculated by applying our accounting policies and estimates. The results of the acquired stores have been adjusted to reflect the following: depreciation on a straight-line basis over the expected lives for property and equipment; accounting for inventory on a specific identification method; and recognition of interest expense for real estate financing related to stores where we purchased the facility. No nonrecurring pro forma adjustments directly attributable to the acquisitions are included in the reported pro forma revenues and earnings.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	6 Months Ended
	Jun. 30, 2017
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued accounting standards update ("ASU") 2014-09, "Revenue from Contracts with Customers," which amends the accounting guidance related to revenues. This amendment will replace most of the existing revenue recognition guidance when it becomes effective. The new standard, as amended in July 2015, is effective for fiscal years beginning after December 15, 2017 and entities are allowed to adopt the standard as early as annual periods beginning after December 15, 2016, and interim periods therein. The standard permits the use of either the retrospective or cumulative effect transition method. We have evaluated the effect this amendment will have on our most significant types of transactions and expect the timing of our revenue recognition to generally remain the same. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosing key information about leasing arrangements. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are evaluating the effect this pronouncement will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 simplifies the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. In January 2017, we adopted this new guidance. As a result, we recorded the following: • Reclassified $0.2 million as a decrease to additional paid-in capital and an increase to retained earnings related to our policy election to record forfeitures as they occur. • All prior periods presented in our Consolidated Statements of Cash Flows have been adjusted for the presentation of excess tax benefits on the cash flow statement. This resulted in a $4.4 million reclassification between financing and operating cash flows. • We had $0.3 million of tax-affected state net operating loss carryforwards related to excess tax benefits for which a deferred tax asset had not been recognized. At adoption, this amount was recorded with the offset to retained earnings. Additionally, we do not believe that it is more-likely-than-not that the asset will be utilized and, as a result, a valuation allowance in the same amount was recorded that offset the impact to retained earnings. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance for eight cash flow classification issues to reduce diversity in practice. The clarification includes guidance on items such as debt prepayment or debt extinguishment cost, contingent consideration payment made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. We are evaluating the effect this pronouncement will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment." ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the updated standard, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, if applicable. The loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The same impairment test also applies to any reporting unit with a zero or negative carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019, on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. We do not expect the adoption of ASU 2017-04 to have a material effect on our financial position, results of operations or cash flows. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting." ASU 2017-09 reduces both diversity in practice and cost and complexity when changing the terms or conditions of a share-based payment award. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU 2017-09 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments in this update should be applied prospectively to an award modified on or after the adoption date. We do not expect the adoption of ASU 2017-09 to have a material effect on our financial position, results of operations or cash flows.

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	13. Subsequent Events Common Stock Dividend On July 24, 2017 , our Board of Directors approved a dividend of $0.27 per share on our Class A and Class B common stock related to our second quarter 2017 financial results. The dividend will total approximately $6.8 million and will be paid on August 25, 2017 to shareholders of record on August 11, 2017 . 5.25% Senior Notes Due 2025 On July 24, 2017, we issued $300 million in aggregate principal amount of 5.25% Senior Notes due 2025 ("the Notes") to eligible purchasers in a private placement under Rule 144A and Regulation S of the Securities Act of 1933. Interest accrues on the Notes from July 24, 2017 and is payable semiannually on February 1 and August 1. The first interest payment is on February 1, 2018. We may redeem the Notes in whole or in part at any time prior to August 1, 2020 at a price equal to 100% of the principal amount plus a make-whole premium set forth in the Indenture and accrued and unpaid interest. After August 1, 2020, we may redeem some or all of the Notes subject to the redemption prices set forth in the Indenture. If we experience specific kinds of changes of control, as described in the Indenture, we must offer to repurchase the Notes at 101% of their principal amount plus accrued and unpaid interest to the date of purchase. We paid approximately $5 million in underwriting and other fees in connection with this issuance, which will be amortized as interest expense over the term of the Notes. The Notes are fully and unconditionally guaranteed, jointly and severally, on a senior unsecured basis by each of the Company’s existing and future restricted subsidiaries that is a borrower under or that guarantees obligations under the Company’s credit facility or other indebtedness of the Company or any subsidiary guarantor. The terms of the Notes, in certain circumstances, may restrict our ability to, among other things, incur additional indebtedness, pay dividends, repurchase our common stock, or merge, consolidate or sell all or substantially all our assets. Credit Facility On August 1, 2017, we amended our existing credit facility to increase the total financing commitment to $2.4 billion . This syndicated credit facility is comprised of 18 financial institutions, including seven manufacturer-affiliated finance companies. Our credit facility provides for up to $1.9 billion in new vehicle inventory floor plan financing, up to $250 million in used vehicle inventory floor plan financing and a maximum of $250 million in revolving financing for general corporate purposes, including acquisitions and working capital. This credit facility may be expanded to $2.75 billion total availability, subject to lender approval.

Interim Financial Statements (P

Interim Financial Statements (Policies)	6 Months Ended
	Jun. 30, 2017
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation These condensed Consolidated Financial Statements contain unaudited information as of June 30, 2017 and for the three and six months ended June 30, 2017 and 2016 . The unaudited interim financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain disclosures required by accounting principles generally accepted in the United States of America for annual financial statements are not included herein. In management’s opinion, these unaudited financial statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the information when read in conjunction with our 2016 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2016 is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 28, 2017 . The interim condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our 2016 Annual Report on Form 10-K. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.
Reclassifications	Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying condensed Consolidated Financial Statements to maintain consistency and comparability between periods presented. These reclassifications were related to our adoption of ASU 2016-09, "Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting." Specifically, we reclassified the presentation of excess tax benefits on our Consolidated Statements of Cash Flows between financing and operating cash flows and recorded reclassifications between additional paid-in capital and retained earnings. See also Note 12.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued accounting standards update ("ASU") 2014-09, "Revenue from Contracts with Customers," which amends the accounting guidance related to revenues. This amendment will replace most of the existing revenue recognition guidance when it becomes effective. The new standard, as amended in July 2015, is effective for fiscal years beginning after December 15, 2017 and entities are allowed to adopt the standard as early as annual periods beginning after December 15, 2016, and interim periods therein. The standard permits the use of either the retrospective or cumulative effect transition method. We have evaluated the effect this amendment will have on our most significant types of transactions and expect the timing of our revenue recognition to generally remain the same. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosing key information about leasing arrangements. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are evaluating the effect this pronouncement will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 simplifies the accounting for several aspects of share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. In January 2017, we adopted this new guidance. As a result, we recorded the following: • Reclassified $0.2 million as a decrease to additional paid-in capital and an increase to retained earnings related to our policy election to record forfeitures as they occur. • All prior periods presented in our Consolidated Statements of Cash Flows have been adjusted for the presentation of excess tax benefits on the cash flow statement. This resulted in a $4.4 million reclassification between financing and operating cash flows. • We had $0.3 million of tax-affected state net operating loss carryforwards related to excess tax benefits for which a deferred tax asset had not been recognized. At adoption, this amount was recorded with the offset to retained earnings. Additionally, we do not believe that it is more-likely-than-not that the asset will be utilized and, as a result, a valuation allowance in the same amount was recorded that offset the impact to retained earnings. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance for eight cash flow classification issues to reduce diversity in practice. The clarification includes guidance on items such as debt prepayment or debt extinguishment cost, contingent consideration payment made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. We are evaluating the effect this pronouncement will have on our consolidated financial statements and related disclosures. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350) - Simplifying the Test for Goodwill Impairment." ASU 2017-04 simplifies the subsequent measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the updated standard, an entity should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount and recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit's fair value, if applicable. The loss recognized should not exceed the total amount of goodwill allocated to the reporting unit. The same impairment test also applies to any reporting unit with a zero or negative carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU 2017-04 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2019, on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed after January 1, 2017. We do not expect the adoption of ASU 2017-04 to have a material effect on our financial position, results of operations or cash flows. In May 2017, the FASB issued ASU 2017-09, "Compensation - Stock Compensation (Topic 718) - Scope of Modification Accounting." ASU 2017-09 reduces both diversity in practice and cost and complexity when changing the terms or conditions of a share-based payment award. The amendments in this update provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting. ASU 2017-09 is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2017. Early adoption is permitted, including adoption in any interim period for which financial statements have not yet been issued. The amendments in this update should be applied prospectively to an award modified on or after the adoption date. We do not expect the adoption of ASU 2017-09 to have a material effect on our financial position, results of operations or cash flows.

Accounts Receivable (Tables)

Accounts Receivable (Tables)	6 Months Ended
	Jun. 30, 2017
Accounts Receivable, Net [Abstract]
Schedule of Accounts Receivable	Accounts receivable consisted of the following (in thousands): June 30, 2017 December 31, 2016 Contracts in transit $ 179,556 $ 233,506 Trade receivables 51,009 47,450 Vehicle receivables 40,120 43,937 Manufacturer receivables 73,067 76,948 Auto loan receivables 74,123 69,859 Other receivables 1,057 1,600 418,932 473,300 Less: Allowance (6,457 ) (5,281 ) Less: Long-term portion of accounts receivable, net (53,465 ) (50,305 ) Total accounts receivable, net $ 359,010 $ 417,714

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	The components of inventories, net, consisted of the following (in thousands): June 30, 2017 December 31, 2016 New vehicles $ 1,376,995 $ 1,338,110 Used vehicles 428,361 368,067 Parts and accessories 73,424 66,410 Total inventories $ 1,878,780 $ 1,772,587

Goodwill and Franchise Value (T

Goodwill and Franchise Value (Tables)	6 Months Ended
	Jun. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amounts of goodwill are as follows (in thousands): Domestic Import Luxury Consolidated Balance as of December 31, 2015 ¹ $ 97,903 $ 84,384 $ 30,933 $ 213,220 Additions through acquisitions 2 18,154 21,795 7,448 47,397 Reductions through divestitures (1,218 ) — — (1,218 ) Balance as of December 31, 2016 1 114,839 106,179 38,381 259,399 Additions through acquisitions 3 — — — — Balance as of June 30, 2017 ¹ $ 114,839 $ 106,179 $ 38,381 $ 259,399 1 Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008. 2 Our purchase price allocation is preliminary for our acquisition of the Carbone Auto Group. The initial purchase price allocation is subject to change upon final valuation analysis. The primary balances still subject to analysis are the segment allocation of goodwill and other intangible assets. 3 Our purchase price allocation is preliminary for the acquisition of the Baierl Auto Group. Unallocated items, including goodwill and other intangible values, are recorded as a component of other non-current assets in the Consolidated Balance Sheets. See also Note 11.
Schedule of Indefinite-Lived Intangible Assets	The changes in the carrying amounts of franchise value are as follows (in thousands): Franchise Value Balance as of December 31, 2015 $ 157,699 Additions through acquisitions 1 27,087 Reductions through divestitures (518 ) Balance as of December 31, 2016 184,268 Additions through acquisitions 2 495 Balance as of June 30, 2017 $ 184,763 1 Our purchase price allocation is preliminary for the acquisitions related to the Carbone Auto Group. The initial purchase price allocation is subject to change upon final valuation analysis. The primary balances still subject to analysis are certain intangible assets. 2 Our purchase price allocation is preliminary for the acquisition of the Baierl Auto Group. Unallocated items, including franchise value and other intangible values, are recorded as a component of other non-current assets in the Consolidated Balance Sheets. See also Note 11.

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2017
Equity [Abstract]
Schedule of Stock Repurchased and Retired	Share repurchases under this authorization were as follows: Repurchases Occurring in the Six Months Ended June 30, 2017 Cumulative Repurchases as of June 30, 2017 Shares Average Price Shares Average Price 2016 Share Repurchase Authorization 247,000 $ 87.94 960,725 $ 81.85

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments	A summary of the aggregate carrying values and fair values of our long-term fixed interest rate debt is as follows (in thousands): June 30, 2017 December 31, 2016 Carrying value $ 370,768 $ 286,660 Fair value 368,142 293,522

Net Income Per Share of Class27

Net Income Per Share of Class A and Class B Common Stock (Tables)	6 Months Ended
	Jun. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	Three Months Ended June 30, 2017 2016 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 50,520 $ 2,680 $ 47,869 $ 3,559 Reallocation of net income as a result of conversion of dilutive stock options 1 (1 ) 1 (1 ) Reallocation of net income due to conversion of Class B to Class A common shares outstanding 340 — 440 — Conversion of Class B common shares into Class A common shares 2,334 — 3,109 — Effect of dilutive stock options on net income 5 (5 ) 9 (9 ) Net income applicable to common stockholders - diluted $ 53,200 $ 2,674 $ 51,428 $ 3,549 Weighted average common shares outstanding – basic 23,791 1,262 23,700 1,762 Conversion of Class B common shares into Class A common shares 1,262 — 1,762 — Effect of dilutive stock options on weighted average common shares 53 — 72 — Weighted average common shares outstanding – diluted 25,106 1,262 25,534 1,762 Net income per common share - basic $ 2.12 $ 2.12 $ 2.02 $ 2.02 Net income per common share - diluted $ 2.12 $ 2.12 $ 2.01 $ 2.01 Three Months Ended June 30, 2017 2016 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive 22 — — — Six Months Ended June 30, 2017 2016 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 98,337 $ 5,590 $ 84,445 $ 7,253 Reallocation of distributed net income as a result of conversion of dilutive stock options 2 (2 ) 5 (5 ) Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding 700 — 907 — Conversion of Class B common shares into Class A common shares 4,876 — 6,313 — Effect of dilutive stock options on net income 12 (12 ) 28 (28 ) Net income applicable to common stockholders - diluted $ 103,927 $ 5,576 $ 91,698 $ 7,220 Weighted average common shares outstanding – basic 23,765 1,351 23,611 2,028 Conversion of Class B common shares into Class A common shares 1,351 — 2,028 — Effect of dilutive stock options on weighted average common shares 61 — 115 — Weighted average common shares outstanding – diluted 25,177 1,351 25,754 2,028 Net income per common share - basic $ 4.14 $ 4.14 $ 3.58 $ 3.58 Net income per common share - diluted $ 4.13 $ 4.13 $ 3.56 $ 3.56 Six Months Ended June 30, 2017 2016 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive 11 — 10 —

Equity-Method Investment (Table

Equity-Method Investment (Tables)	6 Months Ended
	Jun. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Equity Method Investment, Summarized Financial Information, Income Statement	The following amounts related to this equity-method investment were recorded in our Consolidated Statements of Operations (in thousands): Three Months Ended June 30, Six Months Ended 2017 2016 2017 2016 Asset impairments to write investment down to fair value $ — $ 3,498 $ — $ 6,996 Our portion of the partnership’s operating losses — 2,065 — 4,131 Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions — 62 — 154 Tax benefits and credits generated — 6,837 — 12,782

Segments (Tables)

Segments (Tables)	6 Months Ended
	Jun. 30, 2017
Segment Reporting [Abstract]
Schedule of Segment Reporting Information, by Segment	Certain financial information on a segment basis is as follows (in thousands): Three Months Ended Six Months Ended 2017 2016 2017 2016 Revenues: Domestic $ 954,949 $ 830,410 $ 1,854,707 $ 1,602,312 Import 1,101,314 930,317 2,072,787 1,793,060 Luxury 413,088 371,866 776,891 718,679 2,469,351 2,132,593 4,704,385 4,114,051 Corporate and other (2,315 ) 746 (1,248 ) 2,149 $ 2,467,036 $ 2,133,339 $ 4,703,137 $ 4,116,200 Segment income*: Domestic $ 27,857 $ 28,999 $ 53,299 $ 52,129 Import 32,465 29,680 54,637 53,943 Luxury 10,088 9,730 14,801 14,312 70,410 68,409 122,737 120,384 Corporate and other 38,239 28,394 76,740 55,088 Depreciation and amortization (14,031 ) (12,503 ) (26,770 ) (24,166 ) Other interest expense (7,169 ) (5,502 ) (13,840 ) (10,961 ) Other income (expense), net 387 (1,495 ) 10,232 (3,021 ) Income before income taxes $ 87,836 $ 77,303 $ 169,099 $ 137,324 *Segment income for each of the segments is defined as income before income taxes, depreciation and amortization, other interest expense and other income (expense), net. Three Months Ended Six Months Ended 2017 2016 2017 2016 Floor plan interest expense: Domestic $ 8,716 $ 6,233 $ 16,670 $ 12,729 Import 6,793 4,393 12,666 8,627 Luxury 3,383 2,650 6,459 5,308 18,892 13,276 35,795 26,664 Corporate and other (9,560 ) (7,067 ) (18,411 ) (14,546 ) $ 9,332 $ 6,209 $ 17,384 $ 12,118
Reconciliation of Assets from Segment to Consolidated	June 30, 2017 December 31, 2016 Total assets: Domestic $ 1,253,814 $ 1,225,387 Import 1,037,626 959,355 Luxury 491,627 511,779 Corporate and other 1,193,428 1,147,629 $ 3,976,495 $ 3,844,150

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2017
Business Combinations [Abstract]
Operating Results From Acquisitions	Revenue and operating income contributed by the 2017 acquisition subsequent to the date of acquisition were as follows (in thousands): Revenue $ 69,445 Operating income $ 2,168
Schedule of Consideration Paid	The following tables summarize the consideration paid for the 2017 acquisition and the amount of identified assets acquired and liabilities assumed as of the acquisition date (in thousands): Consideration Cash paid, net of cash acquired $ 88,075 Equity securities issued 1 2,137 $ 90,212
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed	T
Business Acquisition, Pro Forma Information	The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three and six -month periods ended June 30, 2017 and 2016 had occurred on January 1, 2016 (in thousands, except per share amounts): Three Months Ended June 30, 2017 2016 Revenue $ 2,502,299 $ 2,452,886 Net income 53,380 54,019 Basic net income per share 2.13 2.12 Diluted net income per share 2.13 2.12 Six Months Ended June 30, 2017 2017 2016 Revenue $ 4,838,047 $ 4,735,415 Net income 104,546 96,687 Basic net income per share 4.16 3.77 Diluted net income per share 4.15 3.75

Accounts Receivable (Summary of

Accounts Receivable (Summary of Accounts Receivable) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	$ 418,932	$ 473,300
Less: Allowance	(6,457)	(5,281)
Less: Long-term portion of accounts receivable, net	(53,465)	(50,305)
Total accounts receivable, net	$ 359,010	417,714
Threshold period for interest to bear on receivables	60 days
Contracts in transit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	$ 179,556	233,506
Trade receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	51,009	47,450
Vehicle receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	40,120	43,937
Manufacturer receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	73,067	76,948
Auto loan receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	74,123	69,859
Other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	$ 1,057	$ 1,600

Inventories (Components of Inve

Inventories (Components of Inventories, net) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Inventory [Line Items]
Inventories, net	$ 1,878,780	$ 1,772,587
New vehicles
Inventory [Line Items]
Inventories, net	1,376,995	1,338,110
Used vehicles
Inventory [Line Items]
Inventories, net	428,361	368,067
Parts and accessories
Inventory [Line Items]
Inventories, net	$ 73,424	$ 66,410

Goodwill and Franchise Value (S

Goodwill and Franchise Value (Schedule of Goodwill) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Balance	$ 259,399	$ 213,220
Additions through acquisitions	0	47,397
Reductions through divestitures		(1,218)
Balance	259,399	259,399
Domestic
Goodwill [Roll Forward]
Balance	114,839	97,903
Additions through acquisitions	0	18,154
Reductions through divestitures		(1,218)
Balance	114,839	114,839
Import
Goodwill [Roll Forward]
Balance	106,179	84,384
Additions through acquisitions	0	21,795
Reductions through divestitures		0
Balance	106,179	106,179
Luxury
Goodwill [Roll Forward]
Balance	38,381	30,933
Additions through acquisitions	0	7,448
Reductions through divestitures		0
Balance	$ 38,381	$ 38,381

Goodwill and Franchise Value 34

Goodwill and Franchise Value (Schedule of Franchise Value) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2017	Dec. 31, 2016
Indefinite-lived Intangible Assets [Roll Forward]
Balance	$ 184,268	$ 157,699
Additions through acquisitions	495	27,087
Reductions through divestitures		(518)
Balance	$ 184,763	$ 184,268

Goodwill and Franchise Value (N

Goodwill and Franchise Value (Narrative) (Details) $ in Millions	Dec. 31, 2008USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Accumulated impairment loss	$ 299.3

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - Class A common stock - USD ($)	6 Months Ended	17 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Feb. 29, 2016
Equity, Class of Treasury Stock [Line Items]
Authorized repurchase amount			$ 250,000,000
Restricted stock units (RSUs)
Equity, Class of Treasury Stock [Line Items]
Repurchase related to stock award tax withholdings (in shares)	32,143
Average purchase price per share (in dollars per share)	$ 99.32
Repurchase related to stock award tax withholdings	$ 3,200,000
2016 Share Repurchase Authorization
Equity, Class of Treasury Stock [Line Items]
Remaining authorized repurchase amount	$ 171,400,000	$ 171,400,000
Average purchase price per share (in dollars per share)	$ 87.94	$ 81.85

Stockholders' Equity (Share Rep

Stockholders' Equity (Share Repurchases) (Details) - Class A common stock - 2016 Share Repurchase Authorization - $ / shares	6 Months Ended	17 Months Ended
	Jun. 30, 2017	Jun. 30, 2017
Equity, Class of Treasury Stock [Line Items]
Shares repurchased pursuant to repurchase authorizations (in shares)	247,000	960,725
Average purchase price per share (in dollars per share)	$ 87.94	$ 81.85

Fair Value Measurements (Summar

Fair Value Measurements (Summary of the Aggregate Carrying Values and Fair Values of Long-Term Fixed Interest Rate Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value Disclosures [Abstract]
Carrying value	$ 370,768	$ 286,660
Fair value	$ 368,142	$ 293,522

Net Income Per Share of Class39

Net Income Per Share of Class A and Class B Common Stock (Earnings Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average common shares outstanding - basic (in shares)	25,053	25,462	25,116	25,639
Weighted average common shares outstanding - diluted (in shares)	25,106	25,534	25,177	25,754
Net income per common share - basic (in dollars per share)	$ 2.12	$ 2.02	$ 4.14	$ 3.58
Net income per common share - diluted (in dollars per share)	$ 2.12	$ 2.01	$ 4.13	$ 3.56
Class A common stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income applicable to common stockholders - basic	$ 50,520	$ 47,869	$ 98,337	$ 84,445
Reallocation of net income as a result of conversion of dilutive stock options	1	1	2	5
Reallocation of net income due to conversion of Class B to Class A common shares outstanding	340	440	700	907
Conversion of Class B common shares into Class A common shares	2,334	3,109	4,876	6,313
Effect of dilutive stock options on net income (in shares)	5	9	12	28
Net income applicable to common stockholders - diluted (in shares)	$ 53,200	$ 51,428	$ 103,927	$ 91,698
Weighted average common shares outstanding - basic (in shares)	23,791	23,700	23,765	23,611
Conversion of Class B common shares into Class A common shares	1,262	1,762	1,351	2,028
Effect of dilutive stock options on weighted average common shares (in shares)	53	72	61	115
Weighted average common shares outstanding - diluted (in shares)	25,106	25,534	25,177	25,754
Net income per common share - basic (in dollars per share)	$ 2.12	$ 2.02	$ 4.14	$ 3.58
Net income per common share - diluted (in dollars per share)	$ 2.12	$ 2.01	$ 4.13	$ 3.56
Antidilutive Securities
Shares issuable pursuant to stock options not included since they were antidilutive (in shares)	22	0	11	10
Class B common stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income applicable to common stockholders - basic	$ 2,680	$ 3,559	$ 5,590	$ 7,253
Reallocation of net income as a result of conversion of dilutive stock options	(1)	(1)	(2)	(5)
Reallocation of net income due to conversion of Class B to Class A common shares outstanding	0	0	0	0
Conversion of Class B common shares into Class A common shares	0	0	0	0
Effect of dilutive stock options on net income (in shares)	(5)	(9)	(12)	(28)
Net income applicable to common stockholders - diluted (in shares)	$ 2,674	$ 3,549	$ 5,576	$ 7,220
Weighted average common shares outstanding - basic (in shares)	1,262	1,762	1,351	2,028
Conversion of Class B common shares into Class A common shares	0	0	0	0
Effect of dilutive stock options on weighted average common shares (in shares)	0	0	0	0
Weighted average common shares outstanding - diluted (in shares)	1,262	1,762	1,351	2,028
Net income per common share - basic (in dollars per share)	$ 2.12	$ 2.02	$ 4.14	$ 3.58
Net income per common share - diluted (in dollars per share)	$ 2.12	$ 2.01	$ 4.13	$ 3.56
Antidilutive Securities
Shares issuable pursuant to stock options not included since they were antidilutive (in shares)	0	0	0	0

Equity-Method Investment (Narra

Equity-Method Investment (Narrative) (Details) - NMTC Program $ in Millions	Oct. 31, 2014USD ($)
Schedule of Equity Method Investments [Line Items]
Membership interest acquisition	99.90%
Total equity contribution	$ 49.8

Equity-Method Investment (Equit

Equity-Method Investment (Equity-Method Investment Recorded in Consolidated Statements of Operations) (Details) - NMTC Program - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Schedule of Equity Method Investments [Line Items]
Asset impairments to write investment down to fair value	$ 0	$ 3,498	$ 0	$ 6,996
Our portion of the partnership’s operating losses	0	2,065	0	4,131
Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions	0	62	0	154
Tax benefits and credits generated	$ 0	$ 6,837	$ 0	$ 12,782

Segments (Narrative) (Details)

Segments (Narrative) (Details)	6 Months Ended
	Jun. 30, 2017segment
Segment Reporting [Abstract]
Number of reportable segments	3

Segments (Certain Financial Inf

Segments (Certain Financial Information a Segment Basis) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Segment Reporting Information [Line Items]
Total revenues	$ 2,467,036	$ 2,133,339	$ 4,703,137	$ 4,116,200
Income before income taxes	87,836	77,303	169,099	137,324
Depreciation and amortization	(14,031)	(12,503)	(26,770)	(24,166)
Other interest expense, net	(7,169)	(5,502)	(13,840)	(10,961)
Other income (expense), net	387	(1,495)	10,232	(3,021)
Floor plan interest expense:
Floor plan interest expense	9,332	6,209	17,384	12,118
Operating segments
Segment Reporting Information [Line Items]
Total revenues	2,469,351	2,132,593	4,704,385	4,114,051
Income before income taxes	70,410	68,409	122,737	120,384
Floor plan interest expense:
Floor plan interest expense	18,892	13,276	35,795	26,664
Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	954,949	830,410	1,854,707	1,602,312
Income before income taxes	27,857	28,999	53,299	52,129
Floor plan interest expense:
Floor plan interest expense	8,716	6,233	16,670	12,729
Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	1,101,314	930,317	2,072,787	1,793,060
Income before income taxes	32,465	29,680	54,637	53,943
Floor plan interest expense:
Floor plan interest expense	6,793	4,393	12,666	8,627
Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	413,088	371,866	776,891	718,679
Income before income taxes	10,088	9,730	14,801	14,312
Floor plan interest expense:
Floor plan interest expense	3,383	2,650	6,459	5,308
Corporate and other
Segment Reporting Information [Line Items]
Total revenues	(2,315)	746	(1,248)	2,149
Income before income taxes	38,239	28,394	76,740	55,088
Floor plan interest expense:
Floor plan interest expense	(9,560)	(7,067)	(18,411)	(14,546)
Segment reconciling items
Segment Reporting Information [Line Items]
Depreciation and amortization	(14,031)	(12,503)	(26,770)	(24,166)
Other interest expense, net	(7,169)	(5,502)	(13,840)	(10,961)
Other income (expense), net	$ 387	$ (1,495)	$ 10,232	$ (3,021)

Segments (Segment Assets) (Deta

Segments (Segment Assets) (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total assets	$ 3,976,495	$ 3,844,150
Operating segments | Domestic
Segment Reporting Information [Line Items]
Total assets	1,253,814	1,225,387
Operating segments | Import
Segment Reporting Information [Line Items]
Total assets	1,037,626	959,355
Operating segments | Luxury
Segment Reporting Information [Line Items]
Total assets	491,627	511,779
Corporate and other
Segment Reporting Information [Line Items]
Total assets	$ 1,193,428	$ 1,147,629

Acquisitions (Narrative) (Detai

Acquisitions (Narrative) (Details) $ / shares in Units, $ in Thousands	May 01, 2017USD ($)store$ / sharesshares	Jun. 30, 2017USD ($)	Jun. 30, 2016USD ($)	Sep. 12, 2016store
Business Acquisition [Line Items]
Equity securities issued | $		$ 2,137	$ 0
Acquistion expense recognized | $		$ 2,100	$ 0
Baierl Auto Group
Business Acquisition [Line Items]
Number of stores acquired | store	8
Equity interests issued or issuable (in shares) | shares	22,446
Share issuance period	4 years
Equity securities issued | $	$ 2,100
Price of acquisition (in dollars per share) | $ / shares	$ 95.22
Carbone Auto Group
Business Acquisition [Line Items]
Number of stores acquired | store				9
Common Stock, Issued | Baierl Auto Group
Business Acquisition [Line Items]
Equity interests issued or issuable (in shares) | shares	4,489
Common Stock, Issuable | Baierl Auto Group
Business Acquisition [Line Items]
Equity interests issued or issuable (in shares) | shares	17,957

Acquisitions (Revenue and Opera

Acquisitions (Revenue and Operating Income from Acquisitions) (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017USD ($)
Business Combinations [Abstract]
Revenue	$ 69,445
Operating income	$ 2,168

Acquisitions (Summary of Acquis

Acquisitions (Summary of Acquisitions) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
Business Combinations [Abstract]
Cash paid, net of cash acquired	$ 88,075	$ 18,807
Equity securities issued	2,137	$ 0
Purchase price	$ 90,212

Acquisitions (Assets Acquired a

Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - 2017 Acquisitions $ in Thousands	Jun. 30, 2017USD ($)
Business Acquisition [Line Items]
Trade receivables, net	$ 12,203
Inventories	78,820
Property and equipment	54,433
Other assets	39,345
Floor plan notes payable	(70,960)
Debt and capital lease obligations	(13,585)
Other liabilities	(10,044)
Assets acquired and liabilities assumed, net	$ 90,212

Acquisitions (Pro Forma Summary

Acquisitions (Pro Forma Summary of All Acquisitions) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Business Combinations [Abstract]
Revenue	$ 2,502,299	$ 2,452,886	$ 4,838,047	$ 4,735,415
Net income	$ 53,380	$ 54,019	$ 104,546	$ 96,687
Basic net income per share (in dollars per share)	$ 2.13	$ 2.12	$ 4.16	$ 3.77
Diluted net income per share (in dollars per share)	$ 2.13	$ 2.12	$ 4.15	$ 3.75

Recent Accounting Pronounceme50

Recent Accounting Pronouncements (Narrative) (Details) $ in Millions	1 Months Ended
	Jan. 31, 2017USD ($)
Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Deferred tax assets, gross	$ 0.3
Deferred tax assets, valuation allowance	0.3
Reclassification of excess tax benefits between financing and operating cash flows | Three months ended March 31, 2016
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Prior period reclassification adjustment	4.4
Additional paid-in capital | Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle in period of adoption	(0.2)
Retained earnings | Accounting Standards Update 2016-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative effect of new accounting principle in period of adoption	$ 0.2

Subsequent Events (Narrative) (

Subsequent Events (Narrative) (Details)	Aug. 01, 2017USD ($)financial_institution	Jul. 24, 2017USD ($)$ / shares	Jun. 30, 2017$ / shares	Jun. 30, 2016$ / shares	Jun. 30, 2017$ / shares	Jun. 30, 2016$ / shares
Subsequent Event [Line Items]
Cash dividends declared per Class A and Class B share (in dollars per share) | $ / shares			$ 0.27	$ 0.25	$ 0.52	$ 0.45
Subsequent Event
Subsequent Event [Line Items]
Cash dividends declared per Class A and Class B share (in dollars per share) | $ / shares		$ 0.27
Dividends payable		$ 6,800,000
Subsequent Event | Senior Notes | Senior Notes Due 2025
Subsequent Event [Line Items]
Aggregate principal amount in private offering		$ 300,000,000
Stated interest rate		5.25%
Redemption percentage price		100.00%
Percentage of principal amount redeemable		101.00%
Underwriting and other fees of issuance		$ 5,000,000
Subsequent Event | Line of Credit | Amended Revolving Credit Facility
Subsequent Event [Line Items]
Total financing commitment	$ 2,400,000,000
Number of financial institutions | financial_institution	18
Number of manufactured-affiliated finance companies | financial_institution	7
Higher borrowing capacity option	$ 2,750,000,000
Subsequent Event | Revolving Credit Facility | Line of Credit | Amended Revolving Credit Facility
Subsequent Event [Line Items]
Total financing commitment	250,000,000
Subsequent Event | New Vehicle Inventory Floor Plan Pricing | Line of Credit | Amended Revolving Credit Facility
Subsequent Event [Line Items]
Total financing commitment	1,900,000,000
Subsequent Event | Used Vehicle Inventory Floor Plan Financing | Line of Credit | Amended Revolving Credit Facility
Subsequent Event [Line Items]
Total financing commitment	$ 250,000,000