Lithia Motors (LAD) 10-Q 7 Nov 17 2017 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2017	Nov. 07, 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	Sep. 30, 2017
Document Fiscal Year Focus	2,017
Document Fiscal Period Focus	Q3
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		23,958,168
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	Sep. 30, 2017	Dec. 31, 2016
Current Assets:
Cash and cash equivalents	$ 38,577	$ 50,282
Accounts receivable, net of allowance for doubtful accounts of $6,145 and $5,281	446,613	417,714
Inventories, net	1,966,456	1,772,587
Other current assets	59,622	46,611
Total Current Assets	2,511,268	2,287,194
Property and equipment, net of accumulated depreciation of $190,962 and $167,300	1,087,920	1,006,130
Goodwill	257,185	259,399
Franchise value	186,977	184,268
Other non-current assets	328,243	107,159
Total Assets	4,371,593	3,844,150
Current Liabilities:
Floor plan notes payable	114,833	94,602
Floor plan notes payable: non-trade	1,598,111	1,506,895
Current maturities of long-term debt	17,619	20,965
Trade payables	103,105	88,423
Accrued liabilities	241,094	211,109
Total Current Liabilities	2,074,762	1,921,994
Long-term debt, less current maturities	991,333	769,916
Deferred revenue	98,265	81,929
Deferred income taxes	66,474	59,075
Other long-term liabilities	109,383	100,460
Total Liabilities	3,340,217	2,933,374
Stockholders' Equity:
Preferred stock - no par value; authorized 15,000 shares; none outstanding	0	0
Additional paid-in capital	42,373	41,225
Retained earnings	839,999	703,820
Total Stockholders' Equity	1,031,376	910,776
Total Liabilities and Stockholders' Equity	4,371,593	3,844,150
Class A common stock
Stockholders' Equity:
Common stock: Class A and Class B	148,880	165,512
Class B common stock
Stockholders' Equity:
Common stock: Class A and Class B	$ 124	$ 219

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Allowance for doubtful accounts	$ 6,145	$ 5,281
Accumulated depreciation	$ 190,962	$ 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 (in shares)	23,966,000	23,382,000
Common stock A and B, shares outstanding (in shares)	23,966,000	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 (in shares)	1,000,000	1,762,000
Common stock A and B, shares outstanding (in shares)	1,000,000	1,762,000

Consolidated Statements of Oper

Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Revenues:
Total revenues	$ 2,680,342	$ 2,269,967	$ 7,383,479	$ 6,386,167
Cost of sales:
Total cost of sales	2,277,321	1,932,706	6,263,535	5,419,688
Gross profit	403,021	337,261	1,119,944	966,479
Asset impairments	0	3,498	0	10,494
Selling, general and administrative	282,241	228,134	782,303	662,766
Depreciation and amortization	14,828	12,206	41,598	36,372
Operating income	105,952	93,423	296,043	256,847
Floor plan interest expense	(10,629)	(6,186)	(28,013)	(18,304)
Other interest expense, net	(9,905)	(5,647)	(23,745)	(16,608)
Other income (expense), net	1,125	(1,513)	11,357	(4,534)
Income before income taxes	86,543	80,077	255,642	217,401
Income tax provision	(34,657)	(26,036)	(99,829)	(71,662)
Net income	$ 51,886	$ 54,041	$ 155,813	$ 145,739
Basic net income per share (in dollars per share)	$ 2.07	$ 2.15	$ 6.21	$ 5.72
Shares used in basic per share calculations (in shares)	25,008	25,194	25,090	25,490
Diluted net income per share (in dollars per share)	$ 2.07	$ 2.14	$ 6.19	$ 5.69
Shares used in diluted per share calculations (in shares)	25,076	25,290	25,158	25,598
Cash dividends declared per Class A and Class B share (in dollars per share)	$ 0.27	$ 0.25	$ 0.79	$ 0.7
New vehicle
Revenues:
Total revenues	$ 1,553,511	$ 1,297,511	$ 4,147,870	$ 3,602,603
Cost of sales:
Total cost of sales	1,465,466	1,221,668	3,909,168	3,387,132
Used vehicle retail
Revenues:
Total revenues	679,180	580,885	1,915,038	1,667,258
Cost of sales:
Total cost of sales	600,522	512,076	1,693,091	1,466,947
Used vehicle wholesale
Revenues:
Total revenues	65,739	75,271	206,754	207,131
Cost of sales:
Total cost of sales	64,565	74,353	202,351	202,897
Finance and insurance
Revenues:
Total revenues	101,044	87,709	282,672	246,390
Service, body and parts
Revenues:
Total revenues	265,683	217,148	744,262	616,088
Cost of sales:
Total cost of sales	133,191	112,806	376,096	317,028
Fleet and other
Revenues:
Total revenues	15,185	11,443	86,883	46,697
Cost of sales:
Total cost of sales	$ 13,577	$ 11,803	$ 82,829	$ 45,684

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Net income	$ 51,886	$ 54,041	$ 155,813	$ 145,739
Other comprehensive income, net of tax:
Gain on cash flow hedges, net of tax expense of $0, $0, $0, and $175, respectively	0	0	0	277
Comprehensive income	$ 51,886	$ 54,041	$ 155,813	$ 146,016

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Statement of Comprehensive Income [Abstract]
Gain on cash flow hedges, tax expense	$ 0	$ 0	$ 0	$ 175

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Cash flows from operating activities:
Net income	$ 155,813	$ 145,739
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairments	0	10,494
Depreciation and amortization	41,598	36,372
Stock-based compensation	8,396	8,665
Gain on disposal of other assets	(382)	(4,299)
Gain on disposal of franchise	0	(1,102)
Deferred income taxes	7,398	9,782
(Increase) decrease (net of acquisitions and dispositions):
Trade receivables, net	(13,345)	(5,911)
Inventories	(16,098)	(85,564)
Other assets	15,207	4,688
Increase (net of acquisitions and dispositions):
Floor plan notes payable	12,126	18,122
Trade payables	12,397	6,153
Accrued liabilities	25,907	32,874
Other long-term liabilities and deferred revenue	11,519	18,227
Net cash provided by operating activities	260,536	194,240
Cash flows from investing activities:
Capital expenditures	(72,174)	(81,363)
Proceeds from sales of assets	12,327	1,756
Cash paid for other investments	(7,929)	(22,279)
Cash paid for acquisitions, net of cash acquired	(400,558)	(199,435)
Proceeds from sales of stores	3,417	11,837
Net cash used in investing activities	(464,917)	(289,484)
Cash flows from financing activities:
Borrowings on floor plan notes payable, net: non-trade	34,056	93,817
Borrowings on lines of credit	1,306,000	841,623
Repayments on lines of credit	(1,432,853)	(744,494)
Principal payments on long-term debt and capital leases, scheduled	(13,697)	(12,278)
Principal payments on long-term debt and capital leases, other	(46,471)	(5,903)
Proceeds from issuance of long-term debt	395,905	22,816
Payments of debt issuance costs	(4,517)	0
Proceeds from issuance of common stock	5,577	5,191
Repurchase of common stock	(31,521)	(108,597)
Dividends paid	(19,803)	(17,823)
Net cash provided by financing activities	192,676	74,352
Decrease in cash and cash equivalents	(11,705)	(20,892)
Cash and cash equivalents at beginning of period	50,282	45,008
Cash and cash equivalents at end of period	38,577	24,116
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	51,160	36,641
Cash paid during the period for income taxes, net	89,206	29,478
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	86,902	19,657
Issuance of Class A common stock in connection with acquisitions	$ 2,137	$ 0

Interim Financial Statements

Interim Financial Statements	9 Months Ended
	Sep. 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 September 30, 2017 and for the three and nine -months ended September 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 13.

Accounts Receivable

Accounts Receivable	9 Months Ended
	Sep. 30, 2017
Accounts Receivable, Net [Abstract]
Accounts Receivable	Accounts Receivable Accounts receivable consisted of the following (in thousands): September 30, 2017 December 31, 2016 Contracts in transit $ 225,564 $ 233,506 Trade receivables 45,243 45,193 Vehicle receivables 53,166 43,937 Manufacturer receivables 85,307 76,948 Auto loan receivables 75,651 69,859 Other receivables 16,892 3,857 501,823 473,300 Less: Allowance (6,145 ) (5,281 ) Less: Long-term portion of accounts receivable, net (49,065 ) (50,305 ) Total accounts receivable, net $ 446,613 $ 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	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Inventories	Inventories The components of inventories, net, consisted of the following (in thousands): September 30, 2017 December 31, 2016 New vehicles $ 1,412,668 $ 1,338,110 Used vehicles 474,948 368,067 Parts and accessories 78,840 66,410 Total inventories $ 1,966,456 $ 1,772,587

Goodwill and Franchise Value

Goodwill and Franchise Value	9 Months Ended
	Sep. 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 Adjustments to purchase price allocations 2,3 (817 ) (1,006 ) (391 ) (2,214 ) Balance as of September 30, 2017 ¹ $ 114,022 $ 105,173 $ 37,990 $ 257,185 1 Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008. 2 Our purchase price allocation for the acquisition of the Carbone Auto Group was finalized in the third quarter of 2017. As a result, we reclassified $2.2 million of value from goodwill to franchise value. 3 Our purchase price allocation is preliminary for the acquisitions of the Baierl Auto Group and the Downtown LA Auto Group and the associated goodwill has not been allocated to each of our segments. See also Note 12. 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 27,087 Reductions through divestitures (518 ) Balance as of December 31, 2016 184,268 Additions through acquisitions 1 495 Adjustments to purchase price allocations 2 2,214 Balance as of September 30, 2017 $ 186,977 1 Our purchase price allocation is preliminary for the acquisitions of the Baierl Auto Group and the Downtown LA Auto Group and have not been included in the above franchise value additions. See also Note 12. 2 Our purchase price allocation for the acquisition of the Carbone Auto Group was finalized in the third quarter of 2017, resulting in a reclassification in the current year of $2.2 million from goodwill to franchise value.

Long-term Debt

Long-term Debt	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Long-term Debt	Long-term Debt Long-term debt consisted of the following: (Dollars in thousands) September 30, 2017 December 31, 2016 Real estate mortgages $ 476,559 $ 428,367 5.25% Senior Notes due 2025 300,000 — Used vehicle inventory financing facility and revolving lines of credit 226,654 353,507 Capital leases and other debt 12,699 11,191 Total long-term debt outstanding 1,015,912 793,065 Less: unamortized debt issuance costs (6,960 ) (2,184 ) Less: current maturities (net of current debt issuance costs) (17,619 ) (20,965 ) Long-term debt $ 991,333 $ 769,916 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 due 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 $5.0 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 our existing and future restricted subsidiaries that is a borrower under, or that guarantees obligations under, our credit facility or other indebtedness. 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.

Stockholders' Equity

Stockholders' Equity	9 Months Ended
	Sep. 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 Nine Months Ended September 30, 2017 Cumulative Repurchases as of September 30, 2017 Shares Average Price Shares Average Price 2016 Share Repurchase Authorization 310,000 $ 91.33 1,023,725 $ 83.25 As of September 30, 2017 , we had $164.8 million available for repurchases pursuant to our 2016 share repurchase authorization. In addition, during the first nine months of 2017 , we repurchased 32,300 shares at an average price of $99.33 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	9 Months Ended
	Sep. 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 primarily consisting of amounts outstanding under our senior notes and real estate mortgages. We calculated the estimated fair value of the senior notes using quoted prices for the identical liability (Level 1) and calculated the estimated fair value of the fixed rate real estate mortgages using a discounted cash flow methodology with 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 September 30, 2017 , our real estate mortgages and other debt, which includes capital leases, had maturity dates between January 12, 2019 and December 31, 2050 . There were no changes to our valuation techniques during the nine -month period ended September 30, 2017 . A summary of the aggregate carrying values, excluding unamortized debt issuance cost, and fair values of our long-term fixed interest rate debt is as follows (in thousands): September 30, 2017 December 31, 2016 Carrying value 5.25% Senior Notes due 2025 $ 300,000 $ — Real Estate Mortgages and Other Debt 382,562 286,660 $ 682,562 $ 286,660 Fair value 5.25% Senior Notes due 2025 $ 309,750 $ — Real Estate Mortgages and Other Debt 403,009 293,522 $ 712,759 $ 293,522

Net Income Per Share of Class A

Net Income Per Share of Class A and Class B Common Stock	9 Months Ended
	Sep. 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 September 30, 2017 2016 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 49,687 $ 2,199 $ 50,262 $ 3,779 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 285 — 439 — Conversion of Class B common shares into Class A common shares 1,908 — 3,326 — Effect of dilutive stock options on net income 5 (5 ) 13 (13 ) Net income applicable to common stockholders - diluted $ 51,886 $ 2,193 $ 54,041 $ 3,765 Weighted average common shares outstanding – basic 23,948 1,060 23,432 1,762 Conversion of Class B common shares into Class A common shares 1,060 — 1,762 — Effect of dilutive stock options on weighted average common shares 68 — 96 — Weighted average common shares outstanding – diluted 25,076 1,060 25,290 1,762 Net income per common share - basic $ 2.07 $ 2.07 $ 2.15 $ 2.15 Net income per common share - diluted $ 2.07 $ 2.07 $ 2.14 $ 2.14 Three Months Ended September 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 9 — — — Nine Months Ended September 30, 2017 2016 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 147,876 $ 7,937 $ 134,533 $ 11,206 Reallocation of distributed net income as a result of conversion of dilutive stock options 3 (3 ) 5 (5 ) Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding 1,006 — 1,365 — Conversion of Class B common shares into Class A common shares 6,909 — 9,794 — Effect of dilutive stock options on net income 19 (19 ) 42 (42 ) Net income applicable to common stockholders - diluted $ 155,813 $ 7,915 $ 145,739 $ 11,159 Weighted average common shares outstanding – basic 23,812 1,278 23,530 1,960 Conversion of Class B common shares into Class A common shares 1,278 — 1,960 — Effect of dilutive stock options on weighted average common shares 68 — 108 — Weighted average common shares outstanding – diluted 25,158 1,278 25,598 1,960 Net income per common share - basic $ 6.21 $ 6.21 $ 5.72 $ 5.72 Net income per common share - diluted $ 6.19 $ 6.19 $ 5.69 $ 5.69 Nine Months Ended September 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 10 — — —

Equity-Method Investment

Equity-Method Investment	9 Months Ended
	Sep. 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 September 30, Nine Months Ended 2017 2016 2017 2016 Asset impairments to write investment down to fair value $ — $ 3,498 $ — $ 10,494 Our portion of the partnership’s operating losses — 2,066 — 6,197 Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions — 31 — 185 Tax benefits and credits generated — 7,592 — 20,374

Segments

Segments	9 Months Ended
	Sep. 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, as well as, 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 Nine Months Ended 2017 2016 2017 2016 Revenues: Domestic $ 1,008,310 $ 893,156 $ 2,863,018 $ 2,495,468 Import 1,209,955 983,947 3,276,667 2,777,007 Luxury 463,518 392,537 1,246,484 1,111,215 2,681,783 2,269,640 7,386,169 6,383,690 Corporate and other (1,441 ) 327 (2,690 ) 2,477 $ 2,680,342 $ 2,269,967 $ 7,383,479 $ 6,386,167 Segment income 1 : Domestic $ 31,141 $ 32,292 $ 84,440 $ 84,420 Import 36,954 32,934 91,365 86,878 Luxury 7,515 7,423 22,542 21,736 75,610 72,649 198,347 193,034 Corporate and other 34,541 26,794 111,281 81,881 Depreciation and amortization (14,828 ) (12,206 ) (41,598 ) (36,372 ) Other interest expense (9,905 ) (5,647 ) (23,745 ) (16,608 ) Other income (expense), net 1,125 (1,513 ) 11,357 (4,534 ) Income before income taxes $ 86,543 $ 80,077 $ 255,642 $ 217,401 1 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 Nine Months Ended 2017 2016 2017 2016 Floor plan interest expense: Domestic $ 9,900 $ 6,303 $ 26,570 $ 19,031 Import 8,007 4,613 20,608 13,241 Luxury 4,494 2,720 11,018 8,027 22,401 13,636 58,196 40,299 Corporate and other (11,772 ) (7,450 ) (30,183 ) (21,995 ) $ 10,629 $ 6,186 $ 28,013 $ 18,304 September 30, 2017 December 31, 2016 Total assets: Domestic $ 1,256,960 $ 1,225,387 Import 1,067,466 959,355 Luxury 590,515 511,779 Corporate and other 1,456,652 1,147,629 $ 4,371,593 $ 3,844,150

Contingencies

Contingencies	9 Months Ended
	Sep. 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 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	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Acquisitions	Acquisitions In the first nine months of 2017 , we completed the following acquisitions: • On May 1, 2017 , Baierl Auto Group, an eight store platform based in Pennsylvania. • On August 7, 2017 , Downtown LA ("DTLA") Auto Group, a seven store platform based in California. Revenue and net income contributed by the 2017 acquisitions subsequent to the date of acquisition were as follows (in thousands): Revenue $ 281,416 Net income $ 4,378 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 acquisitions and the amount of identified assets acquired and liabilities assumed as of the acquisition date (in thousands): Consideration Cash paid, net of cash acquired $ 400,558 Equity securities issued 1 2,137 Debt issued 1,748 $ 404,443 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 four 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 8. The purchase price allocations for the Baierl Auto Group and DTLA Auto Group acquisitions 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 $ 15,554 Inventories 190,079 Franchise value — Property and equipment 57,217 Other assets 249,725 Floor plan notes payable (75,065 ) Debt and capital lease obligations (11,837 ) Other liabilities (21,230 ) $ 404,443 In the three and nine -month periods ended September 30, 2017 , we recorded $3.5 million and $5.7 million , respectively, in acquisition related expenses as a component of selling, general and administrative expense. These expenses include costs related to current year acquisitions, as well as reserve adjustments associated with contingent consideration recorded in association with previous acquisitions. We did not have any material acquisition expenses for the same periods in 2016 . The following unaudited proforma summary presents consolidated information as if all acquisitions in the three and nine -month periods ended September 30, 2017 and 2016 had occurred on January 1, 2016 (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenue $ 2,773,082 $ 2,792,994 $ 8,032,963 $ 7,941,561 Net income 53,488 59,925 164,938 163,473 Basic net income per share 2.14 2.38 6.57 6.41 Diluted net income per share 2.13 2.37 6.56 6.39 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 proforma adjustments directly attributable to the acquisitions are included in the reported proforma revenues and earnings.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 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 most of our revenue recognition to generally remain the same. A portion of the transaction price related to sales of finance and insurance contracts will likely be considered variable consideration and subject to accelerated recognition under the new standard. The new standard requires an entity to estimate variable consideration and apply the constraint in determining the transaction price. We are still evaluating how much variable consideration should be constrained and at what point the constraint is resolved, which will also determine the amount of any potential cumulative effect adjustment. As a result, we have not yet quantified the impact to our consolidated financial statements. 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	9 Months Ended
	Sep. 30, 2017
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Disposal of Stores On October 16, 2017, we disposed of Spokane Mercedes in Spokane, Washington. The disposal generated cash of approximately $13.2 million . Common Stock Dividend On October 23, 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 third quarter 2017 financial results. The dividend will total approximately $6.7 million and will be paid on November 24, 2017 to shareholders of record on November 10, 2017 .

Interim Financial Statements (P

Interim Financial Statements (Policies)	9 Months Ended
	Sep. 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 September 30, 2017 and for the three and nine -months ended September 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 13.
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 most of our revenue recognition to generally remain the same. A portion of the transaction price related to sales of finance and insurance contracts will likely be considered variable consideration and subject to accelerated recognition under the new standard. The new standard requires an entity to estimate variable consideration and apply the constraint in determining the transaction price. We are still evaluating how much variable consideration should be constrained and at what point the constraint is resolved, which will also determine the amount of any potential cumulative effect adjustment. As a result, we have not yet quantified the impact to our consolidated financial statements. 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)	9 Months Ended
	Sep. 30, 2017
Accounts Receivable, Net [Abstract]
Schedule of Accounts Receivable	Accounts receivable consisted of the following (in thousands): September 30, 2017 December 31, 2016 Contracts in transit $ 225,564 $ 233,506 Trade receivables 45,243 45,193 Vehicle receivables 53,166 43,937 Manufacturer receivables 85,307 76,948 Auto loan receivables 75,651 69,859 Other receivables 16,892 3,857 501,823 473,300 Less: Allowance (6,145 ) (5,281 ) Less: Long-term portion of accounts receivable, net (49,065 ) (50,305 ) Total accounts receivable, net $ 446,613 $ 417,714

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2017
Inventory Disclosure [Abstract]
Schedule of Inventories	The components of inventories, net, consisted of the following (in thousands): September 30, 2017 December 31, 2016 New vehicles $ 1,412,668 $ 1,338,110 Used vehicles 474,948 368,067 Parts and accessories 78,840 66,410 Total inventories $ 1,966,456 $ 1,772,587

Goodwill and Franchise Value (T

Goodwill and Franchise Value (Tables)	9 Months Ended
	Sep. 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 Adjustments to purchase price allocations 2,3 (817 ) (1,006 ) (391 ) (2,214 ) Balance as of September 30, 2017 ¹ $ 114,022 $ 105,173 $ 37,990 $ 257,185 1 Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008. 2 Our purchase price allocation for the acquisition of the Carbone Auto Group was finalized in the third quarter of 2017. As a result, we reclassified $2.2 million of value from goodwill to franchise value. 3 Our purchase price allocation is preliminary for the acquisitions of the Baierl Auto Group and the Downtown LA Auto Group and the associated goodwill has not been allocated to each of our segments. See also Note 12.
Schedule of Franchise Value	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 27,087 Reductions through divestitures (518 ) Balance as of December 31, 2016 184,268 Additions through acquisitions 1 495 Adjustments to purchase price allocations 2 2,214 Balance as of September 30, 2017 $ 186,977 1 Our purchase price allocation is preliminary for the acquisitions of the Baierl Auto Group and the Downtown LA Auto Group and have not been included in the above franchise value additions. See also Note 12. 2 Our purchase price allocation for the acquisition of the Carbone Auto Group was finalized in the third quarter of 2017, resulting in a reclassification in the current year of $2.2 million from goodwill to franchise value.

Long-term Debt (Tables)

Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2017
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Long-term debt consisted of the following: (Dollars in thousands) September 30, 2017 December 31, 2016 Real estate mortgages $ 476,559 $ 428,367 5.25% Senior Notes due 2025 300,000 — Used vehicle inventory financing facility and revolving lines of credit 226,654 353,507 Capital leases and other debt 12,699 11,191 Total long-term debt outstanding 1,015,912 793,065 Less: unamortized debt issuance costs (6,960 ) (2,184 ) Less: current maturities (net of current debt issuance costs) (17,619 ) (20,965 ) Long-term debt $ 991,333 $ 769,916

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2017
Equity [Abstract]
Schedule of Stock Repurchased and Retired	Share repurchases under this authorization were as follows: Repurchases Occurring in the Nine Months Ended September 30, 2017 Cumulative Repurchases as of September 30, 2017 Shares Average Price Shares Average Price 2016 Share Repurchase Authorization 310,000 $ 91.33 1,023,725 $ 83.25

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2017
Fair Value Disclosures [Abstract]
Schedule of Aggregate Carrying Values and Fair Values of Long-term Fixed Interest Rate Debt	A summary of the aggregate carrying values, excluding unamortized debt issuance cost, and fair values of our long-term fixed interest rate debt is as follows (in thousands): September 30, 2017 December 31, 2016 Carrying value 5.25% Senior Notes due 2025 $ 300,000 $ — Real Estate Mortgages and Other Debt 382,562 286,660 $ 682,562 $ 286,660 Fair value 5.25% Senior Notes due 2025 $ 309,750 $ — Real Estate Mortgages and Other Debt 403,009 293,522 $ 712,759 $ 293,522

Net Income Per Share of Class29

Net Income Per Share of Class A and Class B Common Stock (Tables)	9 Months Ended
	Sep. 30, 2017
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	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 September 30, 2017 2016 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 49,687 $ 2,199 $ 50,262 $ 3,779 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 285 — 439 — Conversion of Class B common shares into Class A common shares 1,908 — 3,326 — Effect of dilutive stock options on net income 5 (5 ) 13 (13 ) Net income applicable to common stockholders - diluted $ 51,886 $ 2,193 $ 54,041 $ 3,765 Weighted average common shares outstanding – basic 23,948 1,060 23,432 1,762 Conversion of Class B common shares into Class A common shares 1,060 — 1,762 — Effect of dilutive stock options on weighted average common shares 68 — 96 — Weighted average common shares outstanding – diluted 25,076 1,060 25,290 1,762 Net income per common share - basic $ 2.07 $ 2.07 $ 2.15 $ 2.15 Net income per common share - diluted $ 2.07 $ 2.07 $ 2.14 $ 2.14 Three Months Ended September 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 9 — — — Nine Months Ended September 30, 2017 2016 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 147,876 $ 7,937 $ 134,533 $ 11,206 Reallocation of distributed net income as a result of conversion of dilutive stock options 3 (3 ) 5 (5 ) Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding 1,006 — 1,365 — Conversion of Class B common shares into Class A common shares 6,909 — 9,794 — Effect of dilutive stock options on net income 19 (19 ) 42 (42 ) Net income applicable to common stockholders - diluted $ 155,813 $ 7,915 $ 145,739 $ 11,159 Weighted average common shares outstanding – basic 23,812 1,278 23,530 1,960 Conversion of Class B common shares into Class A common shares 1,278 — 1,960 — Effect of dilutive stock options on weighted average common shares 68 — 108 — Weighted average common shares outstanding – diluted 25,158 1,278 25,598 1,960 Net income per common share - basic $ 6.21 $ 6.21 $ 5.72 $ 5.72 Net income per common share - diluted $ 6.19 $ 6.19 $ 5.69 $ 5.69 Nine Months Ended September 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 10 — — —

Equity-Method Investment (Table

Equity-Method Investment (Tables)	9 Months Ended
	Sep. 30, 2017
Equity Method Investments and Joint Ventures [Abstract]
Schedule of Equity Method Investment Recorded in Consolidated Statements of Operations	The following amounts related to this equity-method investment were recorded in our Consolidated Statements of Operations (in thousands): Three Months Ended September 30, Nine Months Ended 2017 2016 2017 2016 Asset impairments to write investment down to fair value $ — $ 3,498 $ — $ 10,494 Our portion of the partnership’s operating losses — 2,066 — 6,197 Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions — 31 — 185 Tax benefits and credits generated — 7,592 — 20,374

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2017
Segment Reporting [Abstract]
Schedule of Certain Information on a Segment Basis	Certain financial information on a segment basis is as follows (in thousands): Three Months Ended Nine Months Ended 2017 2016 2017 2016 Revenues: Domestic $ 1,008,310 $ 893,156 $ 2,863,018 $ 2,495,468 Import 1,209,955 983,947 3,276,667 2,777,007 Luxury 463,518 392,537 1,246,484 1,111,215 2,681,783 2,269,640 7,386,169 6,383,690 Corporate and other (1,441 ) 327 (2,690 ) 2,477 $ 2,680,342 $ 2,269,967 $ 7,383,479 $ 6,386,167 Segment income 1 : Domestic $ 31,141 $ 32,292 $ 84,440 $ 84,420 Import 36,954 32,934 91,365 86,878 Luxury 7,515 7,423 22,542 21,736 75,610 72,649 198,347 193,034 Corporate and other 34,541 26,794 111,281 81,881 Depreciation and amortization (14,828 ) (12,206 ) (41,598 ) (36,372 ) Other interest expense (9,905 ) (5,647 ) (23,745 ) (16,608 ) Other income (expense), net 1,125 (1,513 ) 11,357 (4,534 ) Income before income taxes $ 86,543 $ 80,077 $ 255,642 $ 217,401 1 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 Nine Months Ended 2017 2016 2017 2016 Floor plan interest expense: Domestic $ 9,900 $ 6,303 $ 26,570 $ 19,031 Import 8,007 4,613 20,608 13,241 Luxury 4,494 2,720 11,018 8,027 22,401 13,636 58,196 40,299 Corporate and other (11,772 ) (7,450 ) (30,183 ) (21,995 ) $ 10,629 $ 6,186 $ 28,013 $ 18,304
Reconciliation of Assets from Segment to Consolidated	September 30, 2017 December 31, 2016 Total assets: Domestic $ 1,256,960 $ 1,225,387 Import 1,067,466 959,355 Luxury 590,515 511,779 Corporate and other 1,456,652 1,147,629 $ 4,371,593 $ 3,844,150

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2017
Business Combinations [Abstract]
Revenue and Operating Income from Acquisitions	Revenue and net income contributed by the 2017 acquisitions subsequent to the date of acquisition were as follows (in thousands): Revenue $ 281,416 Net income $ 4,378
Summary of Acquisitions	The following tables summarize the consideration paid for the 2017 acquisitions and the amount of identified assets acquired and liabilities assumed as of the acquisition date (in thousands): Consideration Cash paid, net of cash acquired $ 400,558 Equity securities issued 1 2,137 Debt issued 1,748 $ 404,443
Assets Acquired and Liabilities Assumed	Assets Acquired and Liabilities Assumed Trade receivables, net $ 15,554 Inventories 190,079 Franchise value — Property and equipment 57,217 Other assets 249,725 Floor plan notes payable (75,065 ) Debt and capital lease obligations (11,837 ) Other liabilities (21,230 ) $ 404,443
Pro Forma Summary of All Acquisitions	The following unaudited proforma summary presents consolidated information as if all acquisitions in the three and nine -month periods ended September 30, 2017 and 2016 had occurred on January 1, 2016 (in thousands, except per share amounts): Three Months Ended September 30, Nine Months Ended September 30, 2017 2016 2017 2016 Revenue $ 2,773,082 $ 2,792,994 $ 8,032,963 $ 7,941,561 Net income 53,488 59,925 164,938 163,473 Basic net income per share 2.14 2.38 6.57 6.41 Diluted net income per share 2.13 2.37 6.56 6.39

Accounts Receivable (Summary of

Accounts Receivable (Summary of Accounts Receivable) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	$ 501,823	$ 473,300
Less: Allowance	(6,145)	(5,281)
Less: Long-term portion of accounts receivable, net	(49,065)	(50,305)
Total accounts receivable, net	$ 446,613	417,714
Period that contracts in transit are outstanding	10 days
Threshold period for interest to bear on receivables	60 days
Contracts in transit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	$ 225,564	233,506
Trade receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	45,243	45,193
Vehicle receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	53,166	43,937
Manufacturer receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	85,307	76,948
Auto loan receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	75,651	69,859
Other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable gross	$ 16,892	$ 3,857

Inventories (Components of Inve

Inventories (Components of Inventories, net) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Inventory [Line Items]
Inventories, net	$ 1,966,456	$ 1,772,587
New vehicles
Inventory [Line Items]
Inventories, net	1,412,668	1,338,110
Used vehicles
Inventory [Line Items]
Inventories, net	474,948	368,067
Parts and accessories
Inventory [Line Items]
Inventories, net	$ 78,840	$ 66,410

Goodwill and Franchise Value (S

Goodwill and Franchise Value (Schedule of Goodwill) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016
Goodwill [Roll Forward]
Balance		$ 259,399	$ 213,220
Goodwill adjustments	$ (2,200)	(2,214)	47,397
Reductions through divestitures			(1,218)
Balance	257,185	257,185	259,399
Domestic
Goodwill [Roll Forward]
Balance		114,839	97,903
Goodwill adjustments		(817)	18,154
Reductions through divestitures			(1,218)
Balance	114,022	114,022	114,839
Import
Goodwill [Roll Forward]
Balance		106,179	84,384
Goodwill adjustments		(1,006)	21,795
Reductions through divestitures			0
Balance	105,173	105,173	106,179
Luxury
Goodwill [Roll Forward]
Balance		38,381	30,933
Goodwill adjustments		(391)	7,448
Reductions through divestitures			0
Balance	$ 37,990	$ 37,990	$ 38,381

Goodwill and Franchise Value (N

Goodwill and Franchise Value (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Sep. 30, 2017	Dec. 31, 2016	Dec. 31, 2008
Goodwill and Intangible Assets Disclosure [Abstract]
Accumulated impairment loss				$ 299,300
Goodwill adjustment	$ (2,200)	$ (2,214)	$ 47,397
Franchise value adjustment	$ 2,200	$ 2,214

Goodwill and Franchise Value 37

Goodwill and Franchise Value (Schedule of Franchise Value) (Details) - USD ($) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Sep. 30, 2017	Sep. 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)
Adjustments to purchase price allocations	$ 2,200	2,214
Balance	$ 186,977	$ 186,977	$ 184,268

Long-term Debt (Schedule of Lon

Long-term Debt (Schedule of Long-term Debt) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Jul. 24, 2017	Dec. 31, 2016
Debt Instrument [Line Items]
Total long-term debt outstanding	$ 1,015,912		$ 793,065
Less: unamortized debt issuance costs	(6,960)		(2,184)
Less: current maturities (net of current debt issuance costs)	(17,619)		(20,965)
Long-term debt	991,333		769,916
Real estate mortgages
Debt Instrument [Line Items]
Total long-term debt outstanding	476,559		428,367
5.25% Senior Notes due 2025 | Senior Notes Due 2025
Debt Instrument [Line Items]
Total long-term debt outstanding	$ 300,000	$ 300,000	0
Stated interest rate (percent)	5.25%	5.25%
Used vehicle inventory financing facility and revolving lines of credit
Debt Instrument [Line Items]
Total long-term debt outstanding	$ 226,654		353,507
Capital leases and other debt
Debt Instrument [Line Items]
Total long-term debt outstanding	$ 12,699		$ 11,191

Long-term Debt (Narrative) (Det

Long-term Debt (Narrative) (Details)	Aug. 01, 2017USD ($)financial_institutionfinance_companies	Jul. 24, 2017USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Dec. 31, 2016USD ($)
Debt Instrument [Line Items]
Total long-term debt outstanding			$ 1,015,912,000		$ 793,065,000
Underwriting and other fees of issuance			4,517,000	$ 0
Senior Notes | Senior Notes Due 2025
Debt Instrument [Line Items]
Total long-term debt outstanding		$ 300,000,000	$ 300,000,000		0
Stated interest rate (percent)		5.25%	5.25%
Redemption percentage price (percent)		100.00%
Percentage of principal amount redeemable (percent)		101.00%
Underwriting and other fees of issuance		$ 5,000,000
Line of Credit
Debt Instrument [Line Items]
Total long-term debt outstanding			$ 226,654,000		$ 353,507,000
Line of Credit | Amended Revolving Credit Facility
Debt Instrument [Line Items]
Total financing commitment	$ 2,400,000,000
Number of financial institutions | financial_institution	18
Number of manufactured-affiliated finance companies | finance_companies	7
Higher borrowing capacity option	$ 2,750,000,000
Line of Credit | Amended Revolving Credit Facility | New Vehicle Inventory Floor Plan Pricing
Debt Instrument [Line Items]
Total financing commitment	1,900,000,000
Line of Credit | Amended Revolving Credit Facility | Used Vehicle Inventory Floor Plan Financing
Debt Instrument [Line Items]
Total financing commitment	250,000,000
Line of Credit | Amended Revolving Credit Facility | Revolving Credit Facility
Debt Instrument [Line Items]
Total financing commitment	$ 250,000,000

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - Class A common stock - USD ($)	9 Months Ended	20 Months Ended
	Sep. 30, 2017	Sep. 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)	32,300
Average purchase price per share (in dollars per share)	$ 99.33
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	$ 164,800,000	$ 164,800,000
Average purchase price per share (in dollars per share)	$ 91.33	$ 83.25

Stockholders' Equity (Schedule

Stockholders' Equity (Schedule of Stock Repurchased and Retired) (Details) - Class A common stock - 2016 Share Repurchase Authorization - $ / shares	9 Months Ended	20 Months Ended
	Sep. 30, 2017	Sep. 30, 2017
Equity, Class of Treasury Stock [Line Items]
Shares repurchased pursuant to repurchase authorizations (in shares)	310,000	1,023,725
Average purchase price (in dollars per share)	$ 91.33	$ 83.25

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	Sep. 30, 2017	Jul. 24, 2017	Dec. 31, 2016
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	$ 682,562		$ 286,660
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	$ 712,759		293,522
Senior Notes | Senior Notes Due 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (percent)	5.25%	5.25%
Senior Notes | Senior Notes Due 2025 | Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	$ 300,000		0
Senior Notes | Fair Value, Inputs, Level 1 | Senior Notes Due 2025 | Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	309,750		0
Real Estate Mortgages And Other Debt | Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	382,562		286,660
Real Estate Mortgages And Other Debt | Fair Value, Inputs, Level 2 | Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	$ 403,009		$ 293,522

Net Income Per Share of Class43

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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average common shares outstanding - basic (in shares)	25,008	25,194	25,090	25,490
Weighted average common shares outstanding - diluted (in shares)	25,076	25,290	25,158	25,598
Net income per common share - basic (in dollars per share)	$ 2.07	$ 2.15	$ 6.21	$ 5.72
Net income per common share - diluted (in dollars per share)	$ 2.07	$ 2.14	$ 6.19	$ 5.69
Class A common stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income applicable to common stockholders - basic	$ 49,687	$ 50,262	$ 147,876	$ 134,533
Reallocation of net income as a result of conversion of dilutive stock options	1	1	3	5
Reallocation of net income due to conversion of Class B to Class A common shares outstanding	285	439	1,006	1,365
Conversion of Class B common shares into Class A common shares	1,908	3,326	6,909	9,794
Effect of dilutive stock options on net income	5	13	19	42
Net income applicable to common stockholders - diluted	$ 51,886	$ 54,041	$ 155,813	$ 145,739
Weighted average common shares outstanding - basic (in shares)	23,948	23,432	23,812	23,530
Conversion of Class B common shares into Class A common shares (in shares)	1,060	1,762	1,278	1,960
Effect of dilutive stock options on weighted average common shares (in shares)	68	96	68	108
Weighted average common shares outstanding - diluted (in shares)	25,076	25,290	25,158	25,598
Antidilutive Securities
Shares issuable pursuant to stock options not included since they were antidilutive (in shares)	9	0	10	0
Class B common stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income applicable to common stockholders - basic	$ 2,199	$ 3,779	$ 7,937	$ 11,206
Reallocation of net income as a result of conversion of dilutive stock options	(1)	(1)	(3)	(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	(5)	(13)	(19)	(42)
Net income applicable to common stockholders - diluted	$ 2,193	$ 3,765	$ 7,915	$ 11,159
Weighted average common shares outstanding - basic (in shares)	1,060	1,762	1,278	1,960
Conversion of Class B common shares into Class A common shares (in 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)	1,060	1,762	1,278	1,960
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 (percent)	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		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Schedule of Equity Method Investments [Line Items]
Asset impairments to write investment down to fair value	$ 0	$ 3,498	$ 0	$ 10,494
Our portion of the partnership’s operating losses	0	2,066	0	6,197
Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions	0	31	0	185
Tax benefits and credits generated	$ 0	$ 7,592	$ 0	$ 20,374

Segments (Narrative) (Details)

Segments (Narrative) (Details)	9 Months Ended
	Sep. 30, 2017segment
Segment Reporting [Abstract]
Number of reportable segments	3

Segments (Schedule of Certain F

Segments (Schedule of Certain Financial Information on a Segment Basis) (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Segment Reporting Information [Line Items]
Total revenues	$ 2,680,342	$ 2,269,967	$ 7,383,479	$ 6,386,167
Income before income taxes	86,543	80,077	255,642	217,401
Depreciation and amortization			(41,598)	(36,372)
Other interest expense, net	(9,905)	(5,647)	(23,745)	(16,608)
Other income (expense), net	1,125	(1,513)	11,357	(4,534)
Floor plan interest expense:
Floor plan interest expense	10,629	6,186	28,013	18,304
Operating segments
Segment Reporting Information [Line Items]
Total revenues	2,681,783	2,269,640	7,386,169	6,383,690
Income before income taxes	75,610	72,649	198,347	193,034
Floor plan interest expense:
Floor plan interest expense	22,401	13,636	58,196	40,299
Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	1,008,310	893,156	2,863,018	2,495,468
Income before income taxes	31,141	32,292	84,440	84,420
Floor plan interest expense:
Floor plan interest expense	9,900	6,303	26,570	19,031
Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	1,209,955	983,947	3,276,667	2,777,007
Income before income taxes	36,954	32,934	91,365	86,878
Floor plan interest expense:
Floor plan interest expense	8,007	4,613	20,608	13,241
Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	463,518	392,537	1,246,484	1,111,215
Income before income taxes	7,515	7,423	22,542	21,736
Floor plan interest expense:
Floor plan interest expense	4,494	2,720	11,018	8,027
Corporate and other
Segment Reporting Information [Line Items]
Total revenues	(1,441)	327	(2,690)	2,477
Income before income taxes	34,541	26,794	111,281	81,881
Floor plan interest expense:
Floor plan interest expense	(11,772)	(7,450)	(30,183)	(21,995)
Segment reconciling items
Segment Reporting Information [Line Items]
Depreciation and amortization	(14,828)	(12,206)	(41,598)	(36,372)
Other interest expense, net	(9,905)	(5,647)	(23,745)	(16,608)
Other income (expense), net	$ 1,125	$ (1,513)	$ 11,357	$ (4,534)

Segments (Reconciliation of Ass

Segments (Reconciliation of Assets from Segment to Consolidated) (Details) - USD ($) $ in Thousands	Sep. 30, 2017	Dec. 31, 2016
Segment Reporting Information [Line Items]
Total assets	$ 4,371,593	$ 3,844,150
Operating segments | Domestic
Segment Reporting Information [Line Items]
Total assets	1,256,960	1,225,387
Operating segments | Import
Segment Reporting Information [Line Items]
Total assets	1,067,466	959,355
Operating segments | Luxury
Segment Reporting Information [Line Items]
Total assets	590,515	511,779
Corporate and other
Segment Reporting Information [Line Items]
Total assets	$ 1,456,652	$ 1,147,629

Acquisitions (Narrative) (Detai

Acquisitions (Narrative) (Details)	May 01, 2017USD ($)store$ / sharesshares	Sep. 30, 2017USD ($)	Sep. 30, 2017USD ($)	Sep. 30, 2016USD ($)	Aug. 07, 2017store	Sep. 12, 2016store
Business Acquisition [Line Items]
Equity securities issued | $			$ 2,137,000	$ 0
Acquistion expense recognized | $		$ 3,500,000	$ 5,700,000	$ 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 | $	$ 2,100,000
Price of acquisition (in dollars per share) | $ / shares	$ 95.22
Downtown LA Auto Group
Business Acquisition [Line Items]
Number of stores acquired | store					7
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	9 Months Ended
	Sep. 30, 2017USD ($)
Business Combinations [Abstract]
Revenue	$ 281,416
Net income	$ 4,378

Acquisitions (Summary of Acquis

Acquisitions (Summary of Acquisitions) (Details) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016
Business Combinations [Abstract]
Cash paid, net of cash acquired	$ 400,558	$ 199,435
Equity securities issued	2,137	$ 0
Debt issued	1,748
Consideration	$ 404,443

Acquisitions (Assets Acquired a

Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - 2017 Acquisitions $ in Thousands	Sep. 30, 2017USD ($)
Business Acquisition [Line Items]
Trade receivables, net	$ 15,554
Inventories	190,079
Franchise value	0
Property and equipment	57,217
Other assets	249,725
Floor plan notes payable	(75,065)
Debt and capital lease obligations	(11,837)
Other liabilities	(21,230)
Assets acquired and liabilities assumed	$ 404,443

Acquisitions (Pro Forma Summary

Acquisitions (Pro Forma Summary of All Acquisitions) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Business Combinations [Abstract]
Revenue	$ 2,773,082	$ 2,792,994	$ 8,032,963	$ 7,941,561
Net income	$ 53,488	$ 59,925	$ 164,938	$ 163,473
Basic net income per share (in dollars per share)	$ 2.14	$ 2.38	$ 6.57	$ 6.41
Diluted net income per share (in dollars per share)	$ 2.13	$ 2.37	$ 6.56	$ 6.39

Recent Accounting Pronounceme54

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) - USD ($) $ / shares in Units, $ in Millions	Oct. 23, 2017	Oct. 16, 2017	Sep. 30, 2017	Sep. 30, 2016	Sep. 30, 2017	Sep. 30, 2016
Subsequent Event [Line Items]
Cash dividends declared per Class A and Class B share (in dollars per share)			$ 0.27	$ 0.25	$ 0.79	$ 0.7
Subsequent Event
Subsequent Event [Line Items]
Proceeds from disposal		$ 13.2
Cash dividends declared per Class A and Class B share (in dollars per share)	$ 0.27
Dividends payable	$ 6.7