Lithia Motors (LAD) 10-Q 27 Jul 18 2018 Q2 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 27, 2018
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
Document Type	10-Q
Document Period End Date	Jun. 30, 2018
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2
Amendment Flag	false
Class A common stock
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		23,206,001
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, 2018	Dec. 31, 2017
Current Assets:
Cash and cash equivalents	$ 29,991	$ 57,253
Accounts receivable, net of allowance for doubtful accounts of $7,733 and $7,386	483,995	521,938
Inventories, net	2,333,112	2,132,744
Other current assets	46,231	70,847
Total Current Assets	2,893,329	2,782,782
Property and equipment, net of accumulated depreciation of $219,271 and $197,802	1,232,054	1,185,169
Goodwill	280,954	256,320
Franchise value	197,111	186,977
Other non-current assets	560,714	271,818
Total Assets	5,164,162	4,683,066
Current Liabilities:
Floor plan notes payable	142,606	116,774
Floor plan notes payable: non-trade	1,875,462	1,802,252
Current maturities of long-term debt	24,098	18,876
Trade payables	115,061	111,362
Accrued liabilities	254,984	251,717
Total Current Liabilities	2,412,211	2,300,981
Long-term debt, less current maturities	1,295,077	1,028,476
Deferred revenue	112,601	103,111
Deferred income taxes	58,583	56,277
Other long-term liabilities	124,822	111,003
Total Liabilities	4,003,294	3,599,848
Stockholders' Equity:
Preferred stock - no par value; authorized 15,000 shares; none outstanding	0	0
Additional paid-in capital	43,470	11,309
Retained earnings	1,022,888	922,662
Total Stockholders' Equity	1,160,868	1,083,218
Total Liabilities and Stockholders' Equity	5,164,162	4,683,066
Class A common stock
Stockholders' Equity:
Common stock - Class A and Class B	94,386	149,123
Class B common stock
Stockholders' Equity:
Common stock - Class A and Class B	$ 124	$ 124

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parentheticals) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Allowance for doubtful accounts	$ 7,733	$ 7,386
Accumulated depreciation	$ 219,271	$ 197,802
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)	23,433,000	23,968,000
Common stock A and B, shares outstanding (in shares)	23,433,000	23,968,000
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	1,000,000
Common stock A and B, shares outstanding (in shares)	1,000,000	1,000,000

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Revenues:
Total revenues	$ 3,096,537	$ 2,467,036	$ 5,756,216	$ 4,703,137
Cost of sales:
Total cost of sales	2,635,810	2,091,765	4,887,378	3,986,214
Gross profit	460,727	375,271	868,838	716,923
Selling, general and administrative	333,350	257,290	630,844	500,062
Depreciation and amortization	18,821	14,031	35,675	26,770
Operating income	108,556	103,950	202,319	190,091
Floor plan interest expense	(15,634)	(9,332)	(29,168)	(17,384)
Other interest expense, net	(13,829)	(7,169)	(25,635)	(13,840)
Other income, net	1,659	387	3,033	10,232
Income before income taxes	80,752	87,836	150,549	169,099
Income tax provision	(20,092)	(34,636)	(37,828)	(65,172)
Net income	$ 60,660	$ 53,200	$ 112,721	$ 103,927
Basic net income per share (in dollars per share)	$ 2.45	$ 2.12	$ 4.52	$ 4.14
Shares used in basic per share calculations (in shares)	24,793	25,053	24,930	25,116
Diluted net income per share (in dollars per share)	$ 2.44	$ 2.12	$ 4.50	$ 4.13
Shares used in diluted per share calculations (in shares)	24,882	25,106	25,028	25,177
Cash dividends paid per Class A and Class B share (in dollars per share)	$ 0.29	$ 0.27	$ 0.56	$ 0.52
New vehicle
Revenues:
Total revenues	$ 1,726,803	$ 1,384,055	$ 3,181,528	$ 2,594,359
Cost of sales:
Total cost of sales	1,625,309	1,303,516	2,993,087	2,443,702
Used vehicle retail
Revenues:
Total revenues	804,098	633,635	1,519,672	1,235,858
Cost of sales:
Total cost of sales	716,997	559,129	1,358,960	1,092,569
Used vehicle wholesale
Revenues:
Total revenues	85,335	69,512	161,290	141,015
Cost of sales:
Total cost of sales	83,409	67,800	158,438	137,786
Finance and insurance
Revenues:
Total revenues	114,492	94,851	220,997	181,628
Service, body and parts
Revenues:
Total revenues	311,407	246,005	597,104	478,579
Cost of sales:
Total cost of sales	157,700	123,525	304,989	242,905
Fleet and other
Revenues:
Total revenues	54,402	38,978	75,625	71,698
Cost of sales:
Total cost of sales	$ 52,395	$ 37,795	$ 71,904	$ 69,252

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Cash flows from operating activities:
Net income	$ 112,721	$ 103,927
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	35,675	26,770
Stock-based compensation	6,837	5,432
(Gain) loss on disposal of other assets	(78)	256
Loss on disposal of franchise	380	0
Deferred income taxes	345	(1,156)
(Increase) decrease (net of acquisitions and dispositions):
Accounts receivable, net	47,915	70,908
Inventories	(35,530)	(36,078)
Other assets	20,588	479
Increase (decrease) (net of acquisitions and dispositions):
Floor plan notes payable	15,056	1,330
Trade payables	2,929	414
Accrued liabilities	5,463	(3,684)
Other long-term liabilities and deferred revenue	24,030	9,957
Net cash provided by operating activities	236,331	178,555
Cash flows from investing activities:
Capital expenditures	(72,373)	(32,266)
Proceeds from sales of assets	1,803	2,870
Cash paid for other investments	(7,066)	(7,748)
Cash paid for acquisitions, net of cash acquired	(374,664)	(88,075)
Proceeds from sales of stores	839	0
Net cash used in investing activities	(451,461)	(125,219)
Cash flows from financing activities:
Borrowings (repayments) on floor plan notes payable, net: non-trade	85,763	(32,124)
Borrowings on lines of credit	1,353,290	773,500
Repayments on lines of credit	(1,254,127)	(808,846)
Principal payments on long-term debt and capital leases, scheduled	(9,565)	(8,825)
Principal payments on long-term debt and capital leases, other	(5,305)	(35,765)
Proceeds from issuance of long-term debt	62,140	74,065
Payments of debt issuance costs	(205)	0
Proceeds from issuance of common stock	4,514	3,519
Repurchase of common stock	(33,927)	(24,913)
Dividends paid	(13,938)	(13,052)
Payments of contingent consideration related to acquisitions	(772)	0
Net cash provided by (used in) financing activities	187,868	(72,441)
Decrease in cash and cash equivalents	(27,262)	(19,105)
Cash and cash equivalents at beginning of period	57,253	50,282
Cash and cash equivalents at end of period	29,991	31,177
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	54,675	33,476
Cash paid during the period for income taxes, net	2,296	62,274
Floor plan debt paid in connection with store disposals	5,158	0
Supplemental schedule of non-cash activities:
Debt issued in connection with acquisitions	125,055	1,748
Debt assumed in connection with acquisitions	10,766	11,837
Issuance of Class A common stock in connection with acquisitions	$ 0	$ 2,137

Interim Financial Statements

Interim Financial Statements	6 Months Ended
	Jun. 30, 2018
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, 2018 and for the three and six -months ended June 30, 2018 and 2017 . 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 2017 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2017 is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 23, 2018 . The interim condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our 2017 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. 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. We adopted this standard utilizing a cumulative effect transition method effective January 2018. Except for the changes below, we have consistently applied the accounting policies to all periods presented in these consolidated financial statements. See Notes 2 and 13. Reclassifications Certain immaterial reclassifications of amounts previously reported have been made to the accompanying condensed Consolidated Financial Statements to maintain consistency and comparability between periods presented.

Revenue Recognition

Revenue Recognition	6 Months Ended
	Jun. 30, 2018
Disaggregation of Revenue [Abstract]
Revenue Recognition	Revenue Recognition The following describes our major product lines, which represent the disaggregation of our revenues to transactions that are similar in nature, amount, timing, uncertainties and economic factors. New Retail Vehicle and Used Retail Vehicle Sales Revenue from the retail sale of a vehicle is recognized at a point in time, as all performance obligations are satisfied when a contract is signed by the customer, financing has been arranged or collectibility is probable and the control of the vehicle is transferred to the customer. The transaction price for a retail vehicle sale is specified in the contract with the customer and includes all cash and non-cash consideration. In a retail vehicle sale, customers often trade in their current vehicle. The trade-in is measured at its stand-alone selling price in the contract, utilizing various third-party pricing sources. There are no other non-cash forms of consideration related to retail sales. All vehicle rebates are applied to the vehicle purchase price at the time of the sale, and are therefore incorporated into the price of the contract at the time of the exchange. We do not allow the return of new or used vehicles, except where mandated by state law. Service, Body and Parts Sales Revenue from service, body and parts sales is recognized upon the transfer of control of the parts or service to the customer. We allow for customer returns on sales of our parts inventory up to 30 days after the sale. Most parts returns generally occur within one to two weeks from the time of sale and are not significant. We are the obligor on our lifetime oil contracts. Revenue is allocated to these performance obligations and is recognized over time as services are provided to the customer. The amount of revenue recognized is calculated, net of cancellations, using an input method, which most closely depicts performance of the contracts. Our contract liability balances were $138.5 million and $126.1 million as of June 30, 2018 and December 31, 2017 , respectively; and we recognized $6.0 million and $11.7 million of revenue in the three and six months ended June 30, 2018 , related to our opening contract liability balance. Finance and Insurance Sales Revenue from finance and insurance sales is recognized, net of estimated charge-backs, at the time of the sale of the related vehicle. As a part of the vehicle sale, we seek to arrange financing for customers and sell a variety of add-ons, such as extended warranty service contracts. These products are inherently attached to the governing vehicle and performance of the obligation cannot be performed without the underlying sale of the vehicle. We act as an agent in the sale of these contracts as the pricing is set by the third-party provider and our commission is preset. A portion of the transaction price related to sales of finance and insurance contracts is considered variable consideration and is estimated and recognized upon the sale of the contract under the new standard. We recognized a $9.2 million asset associated with future estimated variable consideration on January 1, 2018 related to contracts sold on or before December 31, 2017. Our contract asset balance was $9.2 million as of June 30, 2018 and is included in trade receivables and other non-current assets.

Accounts Receivable and Contrac

Accounts Receivable and Contract Assets	6 Months Ended
	Jun. 30, 2018
Accounts Receivable, Net [Abstract]
Accounts Receivable and Contract Assets	Accounts Receivable and Contract Assets Accounts receivable consisted of the following (in thousands): June 30, 2018 December 31, 2017 Contracts in transit $ 239,698 $ 286,578 Trade receivables 51,403 45,895 Vehicle receivables 57,795 60,022 Manufacturer receivables 97,173 96,141 Auto loan receivables 67,402 75,052 Other receivables 4,920 14,634 518,391 578,322 Less: Allowance for doubtful accounts (7,733 ) (7,386 ) Less: Long-term portion of accounts receivable, net (26,663 ) (48,998 ) Total accounts receivable, net $ 483,995 $ 521,938 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, 2018
Inventory Disclosure [Abstract]
Inventories	Inventories The components of inventories, net, consisted of the following (in thousands): June 30, 2018 December 31, 2017 New vehicles $ 1,694,026 $ 1,553,751 Used vehicles 553,248 500,011 Parts and accessories 85,838 78,982 Total inventories $ 2,333,112 $ 2,132,744

Goodwill and Franchise Value

Goodwill and Franchise Value	6 Months Ended
	Jun. 30, 2018
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, 2016 ¹ $ 114,839 $ 106,179 $ 38,381 $ 259,399 Adjustments to purchase price allocations 2 (817 ) (1,006 ) (391 ) (2,214 ) Reductions through divestitures — (865 ) — (865 ) Balance as of December 31, 2017 ¹ 114,022 104,308 37,990 256,320 Adjustments to purchase price allocations 3 7,726 15,674 1,271 24,671 Reductions through divestitures — (37 ) — (37 ) Balance as of June 30, 2018 1, 4 $ 121,748 $ 119,945 $ 39,261 $ 280,954 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 for the acquisition of the Baierl Auto Group was finalized in the second quarter of 2018. As a result, we added $24.7 million of goodwill. 4 Our purchase price allocation is preliminary for the acquisitions of the Downtown LA Auto Group, Albany CJD Fiat, Crater Lake Ford Lincoln, Crater Lake Mazda, Ray Laks Honda, Ray Laks Acura, Day Auto Group, Prestige Auto Group, Broadway Ford, and Buhler Ford and the associated goodwill has not been allocated to each of our segments. 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, 2016 $ 184,268 Additions through acquisitions 495 Adjustments to purchase price allocations 1 2,214 Balance as of December 31, 2017 186,977 Adjustments to purchase price allocations 2 10,134 Balance as of June 30, 2018 3 $ 197,111 1 Our purchase price allocation for the acquisition of the Carbone Auto Group was finalized in the third quarter of 2017, resulting in a reclassification of $2.2 million from goodwill to franchise value. 2 Our purchase price allocation for the acquisition of the Baierl Auto Group was finalized in the second quarter of 2018. As a result, we added $10.1 million of franchise value. 3 Our purchase price allocation is preliminary for the acquisitions of the Downtown LA Auto Group, Albany CJD Fiat, Crater Lake Ford Lincoln, Crater Lake Mazda, Ray Laks Honda, Ray Laks Acura, Day Auto Group, Prestige Auto Group, Broadway Ford, and Buhler Ford and have not been included in the above franchise value additions. See also Note 11.

Credit Facilities and Long-term

Credit Facilities and Long-term Debt	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Credit Facilities and Long-term Debt	Credit Facilities and Long-term Debt Below is a summary of our outstanding balances on credit facilities and long-term debt (in thousands): (Dollars in thousands) June 30, 2018 December 31, 2017 Floor plan notes payable: non-trade $ 1,875,462 $ 1,802,252 Floor plan notes payable 142,606 116,774 Total floor plan debt $ 2,018,068 $ 1,919,026 Used vehicle inventory financing facility $ 50,000 $ 177,222 Revolving lines of credit 320,953 94,568 Real estate mortgages 642,602 469,969 5.25% Senior Notes due 2025 300,000 300,000 Other debt 12,195 12,512 Total long-term debt outstanding 1,325,750 1,054,271 Less: unamortized debt issuance costs (6,575 ) (6,919 ) Less: current maturities (net of current debt issuance costs) (24,098 ) (18,876 ) Long-term debt $ 1,295,077 $ 1,028,476 Credit Facility Effective June 25, 2018, we amended our syndicated credit facility, which is comprised of 20 financial institutions, including seven manufacturer-affiliated finance companies. Prior to this amendment, the credit facility, with an aggregate total financing commitment of $2.4 billion , would have matured in August 2022. With this amendment, the aggregate total financing commitment has been increased to $2.6 billion and the term of the credit facility has been extended to July 2023. The total commitment is allocated as $135 million to used vehicle inventory floor plan financing, $450 million to revolving loans for acquisitions and other general corporate purposes, and the remaining $2.0 billion for new vehicle inventory floor plan financing. We have the option to reallocate the commitments, provided that the used vehicle inventory floor plan financing commitment does not exceed 16.5% of aggregate commitments, the revolving loan commitment does not exceed 18.75% of aggregate commitments, and the sum of these commitments plus the new vehicle inventory floor plan financing commitment does not exceed the aggregate total financing commitment of $2.6 billion . Additionally, we may request an increase in the aggregate new vehicle floor plan commitment of up to $400 million provided that the aggregate commitment does not exceed $3.0 billion . All borrowings from, and repayments to, our lending group are presented in the Consolidated Statements of Cash Flows as financing activities. Our obligations under our revolving syndicated credit facility are secured by a substantial amount of our assets, including our inventory (including new and used vehicles, parts and accessories), equipment, accounts (and other rights to payment) and our equity interests in certain of our subsidiaries. Under our revolving syndicated credit facility, our obligations relating to new vehicle floor plan loans are secured only by collateral owned by borrowers of new vehicle floor plan loans under the credit facility. We have the ability to deposit up to $50 million in cash in Principal Reduction (PR) accounts associated with our new vehicle inventory floor plan commitment. The PR accounts are recognized as offsetting credits against outstanding amounts on our new vehicle floor plan commitment and would reduce interest expense associated with the outstanding principal balance. As of June 30, 2018 , we had no balances in our PR accounts. If the outstanding principal balance on our new vehicle inventory floor plan commitment, plus requests on any day, exceeds 95% of the loan commitment, a portion of the revolving line of credit must be reserved. The reserve amount is equal to the lesser of $15.0 million or the maximum revolving line of credit commitment less the outstanding balance on the line less outstanding letters of credit. The reserve amount will decrease the revolving line of credit availability and may be used to repay the new vehicle floor plan commitment balance. The interest rate on the credit facility, as amended, varies based on the type of debt, with the rate of one-month LIBOR plus 1.25% for new vehicle floor plan financing, one-month LIBOR plus 1.50% for used vehicle floor plan financing and a variable interest rate on the revolving financing ranging from the one-month LIBOR plus 1.25% to 2.25% depending on our leverage ratio. The annual interest rate associated with our new vehicle floor plan commitment was 3.34% at June 30, 2018 . The annual interest rate associated with our used vehicle inventory financing facility and our revolving line of credit was 3.59% at June 30, 2018 . 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 was paid 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.

Stockholders' Equity

Stockholders' Equity	6 Months Ended
	Jun. 30, 2018
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, 2018 Cumulative Repurchases as of June 30, 2018 Shares Average Price Shares Average Price 2016 Share Repurchase Authorization 640,586 $ 99.89 1,683,311 $ 89.96 As of June 30, 2018 , we had $98.6 million available for repurchases pursuant to our 2016 share repurchase authorization. In addition, during the first six months of 2018 , we repurchased 29,710 shares at an average price of $112.36 per share, for a total of $3.3 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, 2018
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 June 30, 2018 , our real estate mortgages and other debt, which includes capital leases, had maturity dates between September 27, 2019 and December 31, 2050 . There were no changes to our valuation techniques during the six -month period ended June 30, 2018 . 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): June 30, 2018 December 31, 2017 Carrying value 5.25% Senior Notes due 2025 $ 300,000 $ 300,000 Real Estate Mortgages and Other Debt 451,950 376,880 $ 751,950 $ 676,880 Fair value 5.25% Senior Notes due 2025 $ 291,750 $ 312,750 Real Estate Mortgages and Other Debt 450,686 385,337 $ 742,436 $ 698,087

Net Income Per Share of Class A

Net Income Per Share of Class A and Class B Common Stock	6 Months Ended
	Jun. 30, 2018
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, 2018 2017 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 58,213 $ 2,447 $ 50,520 $ 2,680 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 289 — 340 — Conversion of Class B common shares into Class A common shares 2,149 — 2,334 — Effect of dilutive stock options on net income 8 (8 ) 5 (5 ) Net income applicable to common stockholders - diluted $ 60,660 $ 2,438 $ 53,200 $ 2,674 Weighted average common shares outstanding – basic 23,793 1,000 23,791 1,262 Conversion of Class B common shares into Class A common shares 1,000 — 1,262 — Effect of dilutive stock options on weighted average common shares 89 — 53 — Weighted average common shares outstanding – diluted 24,882 1,000 25,106 1,262 Net income per common share - basic $ 2.45 $ 2.45 $ 2.12 $ 2.12 Net income per common share - diluted $ 2.44 $ 2.44 $ 2.12 $ 2.12 Three Months Ended June 30, 2018 2017 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive 30 — 22 — Six Months Ended June 30, 2018 2017 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 108,199 $ 4,522 $ 98,337 $ 5,590 Reallocation of distributed net income as a result of conversion of dilutive stock options 2 (2 ) 2 (2 ) Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding 557 — 700 — Conversion of Class B common shares into Class A common shares 3,947 — 4,876 — Effect of dilutive stock options on net income 16 (16 ) 12 (12 ) Net income applicable to common stockholders - diluted $ 112,721 $ 4,504 $ 103,927 $ 5,576 Weighted average common shares outstanding – basic 23,930 1,000 23,765 1,351 Conversion of Class B common shares into Class A common shares 1,000 — 1,351 — Effect of employee stock purchases and restricted stock units on weighted average common shares 98 — 61 — Weighted average common shares outstanding – diluted 25,028 1,000 25,177 1,351 Net income per common share - basic $ 4.52 $ 4.52 $ 4.14 $ 4.14 Net income per common share - diluted $ 4.50 $ 4.50 $ 4.13 $ 4.13 Six Months Ended June 30, 2018 2017 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive 56 — 11 —

Segments

Segments	6 Months Ended
	Jun. 30, 2018
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 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 shops 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 who 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 are 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 2018 2017 2018 2017 Revenues: Domestic New vehicle $ 597,596 $ 528,649 $ 1,111,125 $ 1,013,906 Used vehicle retail 283,408 251,214 548,235 496,212 Used vehicle wholesale 33,913 30,700 67,519 62,986 Finance and insurance 43,083 37,354 83,083 73,562 Service, body and parts 113,472 96,515 220,614 189,917 Fleet and other 23,596 10,517 35,109 18,124 1,095,068 954,949 2,065,685 1,854,707 Import New vehicle 771,987 643,404 1,439,590 1,195,286 Used vehicle retail 335,629 269,512 643,317 516,788 Used vehicle wholesale 30,983 27,283 59,178 54,120 Finance and insurance 54,866 45,282 106,562 85,855 Service, body and parts 116,386 96,964 226,041 185,626 Fleet and other 12,879 12,794 18,475 29,036 1,322,730 1,095,239 2,493,163 2,066,711 Luxury New vehicle 361,913 220,388 640,434 396,705 Used vehicle retail 184,941 112,032 327,845 222,637 Used vehicle wholesale 20,263 11,473 34,463 23,696 Finance and insurance 15,934 9,525 28,185 17,519 Service, body and parts 76,883 50,326 141,676 98,358 Fleet and other 17,596 15,419 21,422 24,052 677,530 419,163 1,194,025 782,967 3,095,328 2,469,351 5,752,873 4,704,385 Corporate and other 1,209 (2,315 ) 3,343 (1,248 ) $ 3,096,537 $ 2,467,036 $ 5,756,216 $ 4,703,137 Segment income 1 : Domestic $ 28,545 $ 27,857 $ 54,163 $ 53,299 Import 30,244 32,238 53,265 54,411 Luxury 11,939 10,315 18,826 15,027 70,728 70,410 126,254 122,737 Corporate and other 41,015 38,239 82,572 76,740 Depreciation and amortization (18,821 ) (14,031 ) (35,675 ) (26,770 ) Other interest expense (13,829 ) (7,169 ) (25,635 ) (13,840 ) Other income, net 1,659 387 3,033 10,232 Income before income taxes $ 80,752 $ 87,836 $ 150,549 $ 169,099 1 Segment income for each of the segments is defined as income before income taxes, depreciation and amortization, other interest expense and other income, net. June 30, 2018 December 31, 2017 Total assets: Domestic $ 1,380,823 $ 1,224,276 Import 1,244,218 1,032,665 Luxury 690,774 604,023 Corporate and other 1,848,347 1,822,102 $ 5,164,162 $ 4,683,066

Acquisitions

Acquisitions	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Acquisitions	Acquisitions In the first six months of 2018 , we completed the following acquisitions: • On January 15, 2018, Ray Laks Honda in Orchard Park, New York and Ray Laks Acura in Buffalo, New York. • On February 26, 2018, Day Auto Group, a seven store platform based in Pennsylvania. • On March 1, 2018, Prestige Auto Group, a six store platform based in New Jersey and New York. • On April 2, 2018, Broadway Ford in Idaho Falls, Idaho. • On April 23, 2018, Buhler Ford in Eatontown, New Jersey. Revenue and net loss contributed by the 2018 acquisitions subsequent to the date of acquisition were as follows (in thousands): Revenue $ 360,442 Net loss $ (946 ) In 2017 , we completed the following acquisitions: • On May 1, 2017, we acquired Baierl Auto Group, an eight store platform based in Pennsylvania. • On August 7, 2017, we acquired Downtown LA ("DTLA") Auto Group, a seven store platform based in California. • On November 11, 2017, we acquired Albany CJD Fiat in Albany, New York. • On November 15, 2017, we acquired Crater Lake Ford Lincoln and Crater Lake Mazda in Medford, Oregon. 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 2018 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 $ 374,664 Debt issued 125,055 $ 499,719 The purchase price allocations for the Downtown LA Auto Group, Albany CJD Fiat, Crater Lake Ford Lincoln, Crater Lake Mazda, Ray Laks Honda, Ray Laks Acura, Day Auto Group, Prestige Auto Group, Broadway Ford, and Buhler Ford 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 Accounts receivable $ 732 Inventories, net 180,035 Property and equipment, net 9,850 Other non-current assets 322,006 Floor plan notes payable (10,776 ) Other long-term liabilities (2,128 ) $ 499,719 In the three and six -month periods ended June 30, 2018 , we recorded $3.3 million and $4.2 million in acquisition related expenses as a component of selling, general and administrative expense. Comparatively, we recorded $2.1 million and $2.2 million , respectively, of acquisition related expenses in the same periods in 2017 . The following unaudited proforma summary presents consolidated information as if all acquisitions in the three and six -month periods ended June 30, 2018 and 2017 had occurred on January 1, 2017 (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue $ 3,101,600 $ 3,054,987 $ 5,956,427 $ 5,906,047 Net income 60,678 56,126 111,419 109,162 Basic net income per share 2.45 2.24 4.47 4.35 Diluted net income per share 2.44 2.24 4.45 4.34 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	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements 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 will adopt this accounting standard update effective January 1, 2019. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We have both real estate leases and equipment leases that will be impacted by the new guidance. We continue to evaluate 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.

Change in Accounting Policies

Change in Accounting Policies	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Changes in Accounting Policies	Changes in Accounting Policies In May 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which amends the accounting guidance related to revenues. This amendment replaced most of the existing revenue recognition guidance. The new standard, as amended in July 2015, is effective for fiscal years beginning after December 15, 2017, and interim periods therein. The standard permits the use of either the retrospective or cumulative effect transition method. We adopted this standard utilizing a cumulative effect transition method effective January 2018. While the adoption of the new standard did not have a significant effect on earnings or on the timing of our most significant types of transactions, we made the following changes to our revenue policies: • A portion of the transaction price related to sales of finance and insurance contracts is considered variable consideration and subject to accelerated recognition under the new standard. Accordingly, we recognized a $9.2 million asset associated with future estimated variable consideration and a net of tax increase to retained earnings of $6.5 million . We do not believe there will be a significant impact to future revenue recognized. • The adoption of the new standard clarifies the determination and capitalization of direct costs incurred. As a result, we reassessed the method used to capitalize and amortize direct costs associated with the sale of lifetime lube, oil and filter contracts, which resulted in a $7.2 million reduction in prepaid commissions and a net of tax $5.1 million reduction to retained earnings. These changes had an immaterial effect on our Consolidated Statements of Operations and the following impact on our Consolidated Balance Sheets (in thousands): As Reported Balances without the adoption of Topic 606 Impact on Consolidated Balance Sheets June 30, 2018 Adjustments Accounts receivable, net $ 483,995 $ (3,631 ) $ 480,364 Other current assets 46,231 (1,237 ) 44,994 Other non-current assets 560,714 3,653 564,367 Total Assets 5,164,162 (1,215 ) 5,162,947 Accrued Liabilities 254,984 208 255,192 Deferred income taxes 58,583 (599 ) 57,984 Total Liabilities 4,003,294 (391 ) 4,002,903 Retained earnings 1,022,888 (824 ) 1,022,064 Total Liabilities and Stockholders' Equity 5,164,162 (1,215 ) 5,162,947

Subsequent Events

Subsequent Events	6 Months Ended
	Jun. 30, 2018
Subsequent Events [Abstract]
Subsequent Events	Subsequent Events Common Stock Dividend On July 23, 2018 , our Board of Directors approved a dividend of $0.29 per share on our Class A and Class B common stock related to our second quarter 2018 financial results. The dividend will total approximately $7.0 million and will be paid on August 29, 2018 to shareholders of record on August 15, 2018 . Repurchase of Class A Common Stock Since June 30, 2018 , we repurchased 226,910 shares at a weighted average price of $86.65 per share and as of July 27, 2018 , under our existing share repurchase authorization, $78.9 million million remained available for share repurchases.

Interim Financial Statements (P

Interim Financial Statements (Policies)	6 Months Ended
	Jun. 30, 2018
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, 2018 and for the three and six -months ended June 30, 2018 and 2017 . 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 2017 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2017 is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 23, 2018 . The interim condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our 2017 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. 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. We adopted this standard utilizing a cumulative effect transition method effective January 2018. Except for the changes below, we have consistently applied the accounting policies to all periods presented in these consolidated financial statements.
Reclassifications	Reclassifications Certain immaterial reclassifications of amounts previously reported have been made to the accompanying condensed Consolidated Financial Statements to maintain consistency and comparability between periods presented.
Fair Value Disclosures for Financial Assets and Liabilities	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.
Recent Accounting Pronouncements	Recent Accounting Pronouncements 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 will adopt this accounting standard update effective January 1, 2019. A modified retrospective transition approach is required for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements, with certain practical expedients available. We have both real estate leases and equipment leases that will be impacted by the new guidance. We continue to evaluate 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 2014, the FASB issued ASU 2014-09, "Revenue from Contracts with Customers," which amends the accounting guidance related to revenues. This amendment replaced most of the existing revenue recognition guidance. The new standard, as amended in July 2015, is effective for fiscal years beginning after December 15, 2017, and interim periods therein. The standard permits the use of either the retrospective or cumulative effect transition method. We adopted this standard utilizing a cumulative effect transition method effective January 2018. While the adoption of the new standard did not have a significant effect on earnings or on the timing of our most significant types of transactions, we made the following changes to our revenue policies: • A portion of the transaction price related to sales of finance and insurance contracts is considered variable consideration and subject to accelerated recognition under the new standard. Accordingly, we recognized a $9.2 million asset associated with future estimated variable consideration and a net of tax increase to retained earnings of $6.5 million . We do not believe there will be a significant impact to future revenue recognized. • The adoption of the new standard clarifies the determination and capitalization of direct costs incurred. As a result, we reassessed the method used to capitalize and amortize direct costs associated with the sale of lifetime lube, oil and filter contracts, which resulted in a $7.2 million reduction in prepaid commissions and a net of tax $5.1 million reduction to retained earnings.
Revenue Recognition	Revenue Recognition The following describes our major product lines, which represent the disaggregation of our revenues to transactions that are similar in nature, amount, timing, uncertainties and economic factors. New Retail Vehicle and Used Retail Vehicle Sales Revenue from the retail sale of a vehicle is recognized at a point in time, as all performance obligations are satisfied when a contract is signed by the customer, financing has been arranged or collectibility is probable and the control of the vehicle is transferred to the customer. The transaction price for a retail vehicle sale is specified in the contract with the customer and includes all cash and non-cash consideration. In a retail vehicle sale, customers often trade in their current vehicle. The trade-in is measured at its stand-alone selling price in the contract, utilizing various third-party pricing sources. There are no other non-cash forms of consideration related to retail sales. All vehicle rebates are applied to the vehicle purchase price at the time of the sale, and are therefore incorporated into the price of the contract at the time of the exchange. We do not allow the return of new or used vehicles, except where mandated by state law. Service, Body and Parts Sales Revenue from service, body and parts sales is recognized upon the transfer of control of the parts or service to the customer. We allow for customer returns on sales of our parts inventory up to 30 days after the sale. Most parts returns generally occur within one to two weeks from the time of sale and are not significant. We are the obligor on our lifetime oil contracts. Revenue is allocated to these performance obligations and is recognized over time as services are provided to the customer. The amount of revenue recognized is calculated, net of cancellations, using an input method, which most closely depicts performance of the contracts. Our contract liability balances were $138.5 million and $126.1 million as of June 30, 2018 and December 31, 2017 , respectively; and we recognized $6.0 million and $11.7 million of revenue in the three and six months ended June 30, 2018 , related to our opening contract liability balance. Finance and Insurance Sales Revenue from finance and insurance sales is recognized, net of estimated charge-backs, at the time of the sale of the related vehicle. As a part of the vehicle sale, we seek to arrange financing for customers and sell a variety of add-ons, such as extended warranty service contracts. These products are inherently attached to the governing vehicle and performance of the obligation cannot be performed without the underlying sale of the vehicle. We act as an agent in the sale of these contracts as the pricing is set by the third-party provider and our commission is preset. A portion of the transaction price related to sales of finance and insurance contracts is considered variable consideration and is estimated and recognized upon the sale of the contract under the new standard. We recognized a $9.2 million asset associated with future estimated variable consideration on January 1, 2018 related to contracts sold on or before December 31, 2017. Our contract asset balance was $9.2 million as of June 30, 2018 and is included in trade receivables and other non-current assets.

Accounts Receivable and Contr21

Accounts Receivable and Contract Assets (Tables)	6 Months Ended
	Jun. 30, 2018
Accounts Receivable, Net [Abstract]
Schedule of Accounts Receivable	Accounts receivable consisted of the following (in thousands): June 30, 2018 December 31, 2017 Contracts in transit $ 239,698 $ 286,578 Trade receivables 51,403 45,895 Vehicle receivables 57,795 60,022 Manufacturer receivables 97,173 96,141 Auto loan receivables 67,402 75,052 Other receivables 4,920 14,634 518,391 578,322 Less: Allowance for doubtful accounts (7,733 ) (7,386 ) Less: Long-term portion of accounts receivable, net (26,663 ) (48,998 ) Total accounts receivable, net $ 483,995 $ 521,938

Inventories (Tables)

Inventories (Tables)	6 Months Ended
	Jun. 30, 2018
Inventory Disclosure [Abstract]
Schedule of Inventories	The components of inventories, net, consisted of the following (in thousands): June 30, 2018 December 31, 2017 New vehicles $ 1,694,026 $ 1,553,751 Used vehicles 553,248 500,011 Parts and accessories 85,838 78,982 Total inventories $ 2,333,112 $ 2,132,744

Goodwill and Franchise Value (T

Goodwill and Franchise Value (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2016 ¹ $ 114,839 $ 106,179 $ 38,381 $ 259,399 Adjustments to purchase price allocations 2 (817 ) (1,006 ) (391 ) (2,214 ) Reductions through divestitures — (865 ) — (865 ) Balance as of December 31, 2017 ¹ 114,022 104,308 37,990 256,320 Adjustments to purchase price allocations 3 7,726 15,674 1,271 24,671 Reductions through divestitures — (37 ) — (37 ) Balance as of June 30, 2018 1, 4 $ 121,748 $ 119,945 $ 39,261 $ 280,954 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 for the acquisition of the Baierl Auto Group was finalized in the second quarter of 2018. As a result, we added $24.7 million of goodwill. 4 Our purchase price allocation is preliminary for the acquisitions of the Downtown LA Auto Group, Albany CJD Fiat, Crater Lake Ford Lincoln, Crater Lake Mazda, Ray Laks Honda, Ray Laks Acura, Day Auto Group, Prestige Auto Group, Broadway Ford, and Buhler Ford and the associated goodwill has not been allocated to each of our segments. See also Note 11.
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, 2016 $ 184,268 Additions through acquisitions 495 Adjustments to purchase price allocations 1 2,214 Balance as of December 31, 2017 186,977 Adjustments to purchase price allocations 2 10,134 Balance as of June 30, 2018 3 $ 197,111 1 Our purchase price allocation for the acquisition of the Carbone Auto Group was finalized in the third quarter of 2017, resulting in a reclassification of $2.2 million from goodwill to franchise value. 2 Our purchase price allocation for the acquisition of the Baierl Auto Group was finalized in the second quarter of 2018. As a result, we added $10.1 million of franchise value. 3 Our purchase price allocation is preliminary for the acquisitions of the Downtown LA Auto Group, Albany CJD Fiat, Crater Lake Ford Lincoln, Crater Lake Mazda, Ray Laks Honda, Ray Laks Acura, Day Auto Group, Prestige Auto Group, Broadway Ford, and Buhler Ford and have not been included in the above franchise value additions. See also Note 11.

Credit Facilities and Long-te24

Credit Facilities and Long-term Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Debt Disclosure [Abstract]
Schedule of Long-term Debt	Below is a summary of our outstanding balances on credit facilities and long-term debt (in thousands): (Dollars in thousands) June 30, 2018 December 31, 2017 Floor plan notes payable: non-trade $ 1,875,462 $ 1,802,252 Floor plan notes payable 142,606 116,774 Total floor plan debt $ 2,018,068 $ 1,919,026 Used vehicle inventory financing facility $ 50,000 $ 177,222 Revolving lines of credit 320,953 94,568 Real estate mortgages 642,602 469,969 5.25% Senior Notes due 2025 300,000 300,000 Other debt 12,195 12,512 Total long-term debt outstanding 1,325,750 1,054,271 Less: unamortized debt issuance costs (6,575 ) (6,919 ) Less: current maturities (net of current debt issuance costs) (24,098 ) (18,876 ) Long-term debt $ 1,295,077 $ 1,028,476

Stockholders' Equity (Tables)

Stockholders' Equity (Tables)	6 Months Ended
	Jun. 30, 2018
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, 2018 Cumulative Repurchases as of June 30, 2018 Shares Average Price Shares Average Price 2016 Share Repurchase Authorization 640,586 $ 99.89 1,683,311 $ 89.96

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	6 Months Ended
	Jun. 30, 2018
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): June 30, 2018 December 31, 2017 Carrying value 5.25% Senior Notes due 2025 $ 300,000 $ 300,000 Real Estate Mortgages and Other Debt 451,950 376,880 $ 751,950 $ 676,880 Fair value 5.25% Senior Notes due 2025 $ 291,750 $ 312,750 Real Estate Mortgages and Other Debt 450,686 385,337 $ 742,436 $ 698,087

Net Income Per Share of Class27

Net Income Per Share of Class A and Class B Common Stock (Tables)	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 2017 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 58,213 $ 2,447 $ 50,520 $ 2,680 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 289 — 340 — Conversion of Class B common shares into Class A common shares 2,149 — 2,334 — Effect of dilutive stock options on net income 8 (8 ) 5 (5 ) Net income applicable to common stockholders - diluted $ 60,660 $ 2,438 $ 53,200 $ 2,674 Weighted average common shares outstanding – basic 23,793 1,000 23,791 1,262 Conversion of Class B common shares into Class A common shares 1,000 — 1,262 — Effect of dilutive stock options on weighted average common shares 89 — 53 — Weighted average common shares outstanding – diluted 24,882 1,000 25,106 1,262 Net income per common share - basic $ 2.45 $ 2.45 $ 2.12 $ 2.12 Net income per common share - diluted $ 2.44 $ 2.44 $ 2.12 $ 2.12 Three Months Ended June 30, 2018 2017 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive 30 — 22 — Six Months Ended June 30, 2018 2017 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 108,199 $ 4,522 $ 98,337 $ 5,590 Reallocation of distributed net income as a result of conversion of dilutive stock options 2 (2 ) 2 (2 ) Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding 557 — 700 — Conversion of Class B common shares into Class A common shares 3,947 — 4,876 — Effect of dilutive stock options on net income 16 (16 ) 12 (12 ) Net income applicable to common stockholders - diluted $ 112,721 $ 4,504 $ 103,927 $ 5,576 Weighted average common shares outstanding – basic 23,930 1,000 23,765 1,351 Conversion of Class B common shares into Class A common shares 1,000 — 1,351 — Effect of employee stock purchases and restricted stock units on weighted average common shares 98 — 61 — Weighted average common shares outstanding – diluted 25,028 1,000 25,177 1,351 Net income per common share - basic $ 4.52 $ 4.52 $ 4.14 $ 4.14 Net income per common share - diluted $ 4.50 $ 4.50 $ 4.13 $ 4.13 Six Months Ended June 30, 2018 2017 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive 56 — 11 —

Segments (Tables)

Segments (Tables)	6 Months Ended
	Jun. 30, 2018
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 Six Months Ended 2018 2017 2018 2017 Revenues: Domestic New vehicle $ 597,596 $ 528,649 $ 1,111,125 $ 1,013,906 Used vehicle retail 283,408 251,214 548,235 496,212 Used vehicle wholesale 33,913 30,700 67,519 62,986 Finance and insurance 43,083 37,354 83,083 73,562 Service, body and parts 113,472 96,515 220,614 189,917 Fleet and other 23,596 10,517 35,109 18,124 1,095,068 954,949 2,065,685 1,854,707 Import New vehicle 771,987 643,404 1,439,590 1,195,286 Used vehicle retail 335,629 269,512 643,317 516,788 Used vehicle wholesale 30,983 27,283 59,178 54,120 Finance and insurance 54,866 45,282 106,562 85,855 Service, body and parts 116,386 96,964 226,041 185,626 Fleet and other 12,879 12,794 18,475 29,036 1,322,730 1,095,239 2,493,163 2,066,711 Luxury New vehicle 361,913 220,388 640,434 396,705 Used vehicle retail 184,941 112,032 327,845 222,637 Used vehicle wholesale 20,263 11,473 34,463 23,696 Finance and insurance 15,934 9,525 28,185 17,519 Service, body and parts 76,883 50,326 141,676 98,358 Fleet and other 17,596 15,419 21,422 24,052 677,530 419,163 1,194,025 782,967 3,095,328 2,469,351 5,752,873 4,704,385 Corporate and other 1,209 (2,315 ) 3,343 (1,248 ) $ 3,096,537 $ 2,467,036 $ 5,756,216 $ 4,703,137 Segment income 1 : Domestic $ 28,545 $ 27,857 $ 54,163 $ 53,299 Import 30,244 32,238 53,265 54,411 Luxury 11,939 10,315 18,826 15,027 70,728 70,410 126,254 122,737 Corporate and other 41,015 38,239 82,572 76,740 Depreciation and amortization (18,821 ) (14,031 ) (35,675 ) (26,770 ) Other interest expense (13,829 ) (7,169 ) (25,635 ) (13,840 ) Other income, net 1,659 387 3,033 10,232 Income before income taxes $ 80,752 $ 87,836 $ 150,549 $ 169,099 1 Segment income for each of the segments is defined as income before income taxes, depreciation and amortization, other interest expense and other income, net.
Reconciliation of Assets from Segment to Consolidated	June 30, 2018 December 31, 2017 Total assets: Domestic $ 1,380,823 $ 1,224,276 Import 1,244,218 1,032,665 Luxury 690,774 604,023 Corporate and other 1,848,347 1,822,102 $ 5,164,162 $ 4,683,066

Acquisitions (Tables)

Acquisitions (Tables)	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Revenue and Operating Income from Acquisitions	Revenue and net loss contributed by the 2018 acquisitions subsequent to the date of acquisition were as follows (in thousands): Revenue $ 360,442 Net loss $ (946 )
Summary of Acquisitions	The following tables summarize the consideration paid for the 2018 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 $ 374,664 Debt issued 125,055 $ 499,719
Assets Acquired and Liabilities Assumed	Assets Acquired and Liabilities Assumed Accounts receivable $ 732 Inventories, net 180,035 Property and equipment, net 9,850 Other non-current assets 322,006 Floor plan notes payable (10,776 ) Other long-term liabilities (2,128 ) $ 499,719
Pro Forma Summary of All Acquisitions	The following unaudited proforma summary presents consolidated information as if all acquisitions in the three and six -month periods ended June 30, 2018 and 2017 had occurred on January 1, 2017 (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Revenue $ 3,101,600 $ 3,054,987 $ 5,956,427 $ 5,906,047 Net income 60,678 56,126 111,419 109,162 Basic net income per share 2.45 2.24 4.47 4.35 Diluted net income per share 2.44 2.24 4.45 4.34

Change in Accounting Policies (

Change in Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Accounting Changes and Error Corrections [Abstract]
Schedule of New Accounting Pronouncements and Changes in Accounting Principles	These changes had an immaterial effect on our Consolidated Statements of Operations and the following impact on our Consolidated Balance Sheets (in thousands): As Reported Balances without the adoption of Topic 606 Impact on Consolidated Balance Sheets June 30, 2018 Adjustments Accounts receivable, net $ 483,995 $ (3,631 ) $ 480,364 Other current assets 46,231 (1,237 ) 44,994 Other non-current assets 560,714 3,653 564,367 Total Assets 5,164,162 (1,215 ) 5,162,947 Accrued Liabilities 254,984 208 255,192 Deferred income taxes 58,583 (599 ) 57,984 Total Liabilities 4,003,294 (391 ) 4,002,903 Retained earnings 1,022,888 (824 ) 1,022,064 Total Liabilities and Stockholders' Equity 5,164,162 (1,215 ) 5,162,947

Revenue Recognition (Details)

Revenue Recognition (Details) - USD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
Disaggregation of Revenue [Abstract]
Contract liability	$ 138.5	$ 138.5		$ 126.1
Contract liability, revenue recognized	6	11.7
Contract asset	$ 9.2	$ 9.2	$ 9.2

Accounts Receivable and Contr32

Accounts Receivable and Contract Assets (Summary of Accounts Receivable) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	$ 518,391	$ 578,322
Less: Allowance for doubtful accounts	(7,733)	(7,386)
Less: Long-term portion of accounts receivable, net	(26,663)	(48,998)
Accounts receivable, net	$ 483,995	521,938
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]
Trade receivables	$ 239,698	286,578
Trade receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, net	51,403	45,895
Vehicle receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	57,795	60,022
Manufacturer receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	97,173	96,141
Auto loan receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	67,402	75,052
Other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Trade receivables	$ 4,920	$ 14,634

Inventories (Components of Inve

Inventories (Components of Inventories, net) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Inventory [Line Items]
Inventories, net	$ 2,333,112	$ 2,132,744
New vehicles
Inventory [Line Items]
Inventories, net	1,694,026	1,553,751
Used vehicles
Inventory [Line Items]
Inventories, net	553,248	500,011
Parts and accessories
Inventory [Line Items]
Inventories, net	$ 85,838	$ 78,982

Goodwill and Franchise Value (S

Goodwill and Franchise Value (Schedule of Goodwill) (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	Dec. 31, 2008
Goodwill [Roll Forward]
Balance	$ 256,320	$ 259,399
Adjustments to purchase price allocations	24,671	(2,214)
Reductions through divestitures	(37)	(865)
Balance	280,954	256,320
Accumulated impairment loss			$ 299,300
Domestic
Goodwill [Roll Forward]
Balance	114,022	114,839
Adjustments to purchase price allocations	7,726	(817)
Reductions through divestitures	0	0
Balance	121,748	114,022
Import
Goodwill [Roll Forward]
Balance	104,308	106,179
Adjustments to purchase price allocations	15,674	(1,006)
Reductions through divestitures	(37)	(865)
Balance	119,945	104,308
Luxury
Goodwill [Roll Forward]
Balance	37,990	38,381
Adjustments to purchase price allocations	1,271	(391)
Reductions through divestitures	0	0
Balance	39,261	$ 37,990
Baierl Auto Group
Goodwill [Roll Forward]
Adjustments to purchase price allocations	$ 24,700

Goodwill and Franchise Value 35

Goodwill and Franchise Value (Schedule of Franchise Value) (Details) - USD ($) $ in Thousands	6 Months Ended		12 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Dec. 31, 2017
Indefinite-lived Intangible Assets [Roll Forward]
Balance	$ 186,977	$ 184,268	$ 184,268
Additions through acquisitions			495
Adjustments to purchase price allocations	10,100	$ 2,214	2,200
Balance	$ 197,111		$ 186,977

Credit Facilities and Long-te36

Credit Facilities and Long-term Debt (Credit Facilities and Long-term Debt) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017	Jul. 24, 2017
Debt Instrument [Line Items]
Floor plan notes payable: non-trade	$ 1,875,462	$ 1,802,252
Floor plan notes payable	142,606	116,774
Total floor plan debt	2,018,068	1,919,026
Total long-term debt outstanding	1,325,750	1,054,271
Other Long-term Debt	12,195	12,512
Less: unamortized debt issuance costs	(6,575)	(6,919)
Less: current maturities (net of current debt issuance costs)	(24,098)	(18,876)
Long-term debt	1,295,077	1,028,476
Real Estate Mortgages
Debt Instrument [Line Items]
Total long-term debt outstanding	642,602	469,969
Senior Notes | Senior Notes Due 2025
Debt Instrument [Line Items]
Total long-term debt outstanding	$ 300,000	300,000	$ 300,000
Stated interest rate (percent)	5.25%		5.25%
Used Vehicle Inventory Financing | Line of Credit
Debt Instrument [Line Items]
Total long-term debt outstanding	$ 50,000	177,222
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Total long-term debt outstanding	$ 320,953	$ 94,568

Credit Facilities and Long-te37

Credit Facilities and Long-term Debt (Narrative) (Details)	Jul. 24, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 25, 2018USD ($)financial_institutionfinance_companies	Dec. 31, 2017USD ($)
Debt Instrument [Line Items]
Total long-term debt outstanding		$ 1,325,750,000		$ 1,054,271,000
Line of Credit
Debt Instrument [Line Items]
Principal Reduction Accounts Maximum Deposit Amount		50,000,000
Principal Reduction Accounts Outstanding Amount		0
Line of Credit | Syndicated Credit Facility
Debt Instrument [Line Items]
Number Of Financial Institutions | financial_institution			20
Number Of Manufacturer Affiliated Finance Companies | finance_companies			7
Line of Credit Facility, Maximum Borrowing Capacity		2,600,000,000		2,400,000,000
Line Of Credit Facility, Accordion Feature, Higher Borrowing Capacity Option			$ 3,000,000,000
Senior Notes | Senior Notes Due 2025
Debt Instrument [Line Items]
Total long-term debt outstanding	$ 300,000,000	$ 300,000,000		300,000,000
Stated interest rate (percent)	5.25%	5.25%
Redemption percentage price (percent)	100.00%
Percentage of principal amount redeemable (percent)	101.00%
Used Vehicle Inventory Financing | Line of Credit
Debt Instrument [Line Items]
Total long-term debt outstanding		$ 50,000,000		177,222,000
Used Vehicle Inventory Financing | Line of Credit | Syndicated Credit Facility
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 135,000,000
Line Of Credit Facility, Option To Reallocate Commitment, Maximum Aggregate Commitment Threshold Percentage			16.50%
Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Annual interest rate		3.59%
Total long-term debt outstanding		$ 320,953,000		$ 94,568,000
Revolving Credit Facility | Line of Credit | Syndicated Credit Facility
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 450,000,000
Line Of Credit Facility, Option To Reallocate Commitment, Maximum Aggregate Commitment Threshold Percentage			18.75%
New Vehicle Floor Plan | Line of Credit
Debt Instrument [Line Items]
Annual interest rate		3.34%
Reserve Commitment Percent		95.00%
Maximum Reserve Amount If Reserve Is Required		$ 15,000,000
New Vehicle Floor Plan | Line of Credit | Syndicated Credit Facility
Debt Instrument [Line Items]
Line of Credit Facility, Maximum Borrowing Capacity			$ 2,000,000,000
Line Of Credit Facility, Accordian Feature, Increase Limit			$ 400,000,000
London Interbank Offered Rate (LIBOR) | Used Vehicle Inventory Financing | Line of Credit
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.50%
London Interbank Offered Rate (LIBOR) | New Vehicle Floor Plan | Line of Credit
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.25%
Minimum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		1.25%
Maximum | London Interbank Offered Rate (LIBOR) | Revolving Credit Facility | Line of Credit
Debt Instrument [Line Items]
Debt Instrument, Basis Spread on Variable Rate		2.25%

Stockholders' Equity (Narrative

Stockholders' Equity (Narrative) (Details) - USD ($)	6 Months Ended
	Jun. 30, 2018	Feb. 29, 2016
Equity, Class of Treasury Stock [Line Items]
Repurchase related to stock award tax withholdings (in shares)	29,710
Class A common stock
Equity, Class of Treasury Stock [Line Items]
Authorized repurchase amount		$ 250,000,000
Class A common stock | Restricted stock units (RSUs)
Equity, Class of Treasury Stock [Line Items]
Average purchase price per share (in dollars per share)	$ 112.36
Repurchase related to stock award tax withholdings	$ 3,300,000
2016 Share Repurchase Authorization | Class A common stock
Equity, Class of Treasury Stock [Line Items]
Remaining authorized repurchase amount	$ 98,600,000

Stockholders' Equity (Schedule

Stockholders' Equity (Schedule of Stock Repurchased and Retired) (Details) - Class A common stock - $ / shares	6 Months Ended	29 Months Ended
	Jun. 30, 2018	Jun. 30, 2018
Equity, Class of Treasury Stock [Line Items]
Shares repurchased pursuant to repurchase authorizations (in shares)	640,586	1,683,311
Average purchase price (in dollars per share)	$ 99.89	$ 89.96

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, 2018	Dec. 31, 2017	Jul. 24, 2017
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	$ 751,950	$ 676,880
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	$ 742,436	698,087
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	300,000
Senior Notes | Senior Notes Due 2025 | Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	291,750	312,750
Real Estate Mortgages and Other Debt | Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	451,950	376,880
Real Estate Mortgages and Other Debt | Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total debt	$ 450,686	$ 385,337

Net Income Per Share of Class41

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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average common shares outstanding - basic (in shares)	24,793	25,053	24,930	25,116
Weighted average common shares outstanding - diluted (in shares)	24,882	25,106	25,028	25,177
Net income per common share - basic (in dollars per share)	$ 2.45	$ 2.12	$ 4.52	$ 4.14
Net income per common share - diluted (in dollars per share)	$ 2.44	$ 2.12	$ 4.50	$ 4.13
Class A common stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income applicable to common stockholders - basic	$ 58,213	$ 50,520	$ 108,199	$ 98,337
Reallocation of net income as a result of conversion of dilutive stock options	1	1	2	2
Reallocation of net income due to conversion of Class B to Class A common shares outstanding	289	340	557	700
Conversion of Class B common shares into Class A common shares	2,149	2,334	3,947	4,876
Effect of dilutive stock options on net income	8	5	16	12
Net income applicable to common stockholders - diluted	$ 60,660	$ 53,200	$ 112,721	$ 103,927
Weighted average common shares outstanding - basic (in shares)	23,793	23,791	23,930	23,765
Conversion of Class B common shares into Class A common shares (in shares)	1,000	1,262	1,000	1,351
Effect of dilutive stock options on weighted average common shares (in shares)	89	53	98	61
Weighted average common shares outstanding - diluted (in shares)	24,882	25,106	25,028	25,177
Net income per common share - basic (in dollars per share)	$ 2.45	$ 2.12	$ 4.52	$ 4.14
Net income per common share - diluted (in dollars per share)	$ 2.44	$ 2.12	$ 4.50	$ 4.13
Class B common stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income applicable to common stockholders - basic	$ 2,447	$ 2,680	$ 4,522	$ 5,590
Reallocation of net income as a result of conversion of dilutive stock options	(1)	(1)	(2)	(2)
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	(8)	(5)	(16)	(12)
Net income applicable to common stockholders - diluted	$ 2,438	$ 2,674	$ 4,504	$ 5,576
Weighted average common shares outstanding - basic (in shares)	1,000	1,262	1,000	1,351
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)	1,000	1,262	1,000	1,351
Net income per common share - basic (in dollars per share)	$ 2.45	$ 2.12	$ 4.52	$ 4.14
Net income per common share - diluted (in dollars per share)	$ 2.44	$ 2.12	$ 4.50	$ 4.13
Employee Stock Option | Class A common stock
Antidilutive Securities
Shares issuable pursuant to stock options not included since they were antidilutive (in shares)	30	22	56	11
Employee Stock Option | Class B common stock
Antidilutive Securities
Shares issuable pursuant to stock options not included since they were antidilutive (in shares)	0	0	0	0

Segments (Narrative) (Details)

Segments (Narrative) (Details)	6 Months Ended
	Jun. 30, 2018segment
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		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Segment Reporting Information [Line Items]
Total revenues	$ 3,096,537	$ 2,467,036	$ 5,756,216	$ 4,703,137
Income before income taxes	80,752	87,836	150,549	169,099
Depreciation and amortization			(35,675)	(26,770)
Other interest expense, net	(13,829)	(7,169)	(25,635)	(13,840)
Other income, net	1,659	387	3,033	10,232
Operating segments
Segment Reporting Information [Line Items]
Total revenues	3,095,328	2,469,351	5,752,873	4,704,385
Income before income taxes	70,728	70,410	126,254	122,737
Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	1,095,068	954,949	2,065,685	1,854,707
Income before income taxes	28,545	27,857	54,163	53,299
Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	1,322,730	1,095,239	2,493,163	2,066,711
Income before income taxes	30,244	32,238	53,265	54,411
Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	677,530	419,163	1,194,025	782,967
Income before income taxes	11,939	10,315	18,826	15,027
Corporate and other
Segment Reporting Information [Line Items]
Total revenues	1,209	(2,315)	3,343	(1,248)
Income before income taxes	41,015	38,239	82,572	76,740
Segment reconciling items
Segment Reporting Information [Line Items]
Depreciation and amortization	(18,821)	(14,031)	(35,675)	(26,770)
Other interest expense, net	(13,829)	(7,169)	(25,635)	(13,840)
Other income, net	1,659	387	3,033	10,232
New vehicle
Segment Reporting Information [Line Items]
Total revenues	1,726,803	1,384,055	3,181,528	2,594,359
New vehicle | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	597,596	528,649	1,111,125	1,013,906
New vehicle | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	771,987	643,404	1,439,590	1,195,286
New vehicle | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	361,913	220,388	640,434	396,705
Used vehicle retail
Segment Reporting Information [Line Items]
Total revenues	804,098	633,635	1,519,672	1,235,858
Used vehicle retail | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	283,408	251,214	548,235	496,212
Used vehicle retail | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	335,629	269,512	643,317	516,788
Used vehicle retail | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	184,941	112,032	327,845	222,637
Used vehicle wholesale
Segment Reporting Information [Line Items]
Total revenues	85,335	69,512	161,290	141,015
Used vehicle wholesale | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	33,913	30,700	67,519	62,986
Used vehicle wholesale | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	30,983	27,283	59,178	54,120
Used vehicle wholesale | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	20,263	11,473	34,463	23,696
Finance and insurance
Segment Reporting Information [Line Items]
Total revenues	114,492	94,851	220,997	181,628
Finance and insurance | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	43,083	37,354	83,083	73,562
Finance and insurance | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	54,866	45,282	106,562	85,855
Finance and insurance | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	15,934	9,525	28,185	17,519
Service, body and parts
Segment Reporting Information [Line Items]
Total revenues	311,407	246,005	597,104	478,579
Service, body and parts | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	113,472	96,515	220,614	189,917
Service, body and parts | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	116,386	96,964	226,041	185,626
Service, body and parts | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	76,883	50,326	141,676	98,358
Fleet and other
Segment Reporting Information [Line Items]
Total revenues	54,402	38,978	75,625	71,698
Fleet and other | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	23,596	10,517	35,109	18,124
Fleet and other | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	12,879	12,794	18,475	29,036
Fleet and other | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	$ 17,596	$ 15,419	$ 21,422	$ 24,052

Segments (Reconciliation of Ass

Segments (Reconciliation of Assets from Segment to Consolidated) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
Segment Reporting Information [Line Items]
Total Assets	$ 5,164,162	$ 4,683,066
Operating segments | Domestic
Segment Reporting Information [Line Items]
Total Assets	1,380,823	1,224,276
Operating segments | Import
Segment Reporting Information [Line Items]
Total Assets	1,244,218	1,032,665
Operating segments | Luxury
Segment Reporting Information [Line Items]
Total Assets	690,774	604,023
Corporate and other
Segment Reporting Information [Line Items]
Total Assets	$ 1,848,347	$ 1,822,102

Acquisitions (Narrative) (Detai

Acquisitions (Narrative) (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Mar. 01, 2018store	Feb. 26, 2018store	Aug. 07, 2017store	May 01, 2017store
Business Acquisition [Line Items]
Acquisition expense recognized | $	$ 3.3	$ 2.1	$ 4.2	$ 2.2
Day Auto Group
Business Acquisition [Line Items]
Number of stores acquired						7
Prestige Auto Group
Business Acquisition [Line Items]
Number of stores acquired					6
Baierl Auto Group
Business Acquisition [Line Items]
Number of stores acquired								8
Downtown LA Auto Group
Business Acquisition [Line Items]
Number of stores acquired							7

Acquisitions (Revenue and Opera

Acquisitions (Revenue and Operating Income from Acquisitions) (Details) - 2018 Acquisitions $ in Thousands	6 Months Ended
	Jun. 30, 2018USD ($)
Business Acquisition [Line Items]
Revenue	$ 360,442
Net loss	$ (946)

Acquisitions (Summary of Acquis

Acquisitions (Summary of Acquisitions) (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Business Acquisition [Line Items]
Cash paid, net of cash acquired	$ 374,664	$ 88,075
2018 Acquisitions
Business Acquisition [Line Items]
Cash paid, net of cash acquired	374,664
Debt issued	125,055
Total consideration	$ 499,719

Acquisitions (Assets Acquired a

Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - 2018 Acquisitions $ in Thousands	Jun. 30, 2018USD ($)
Business Acquisition [Line Items]
Accounts receivable	$ 732
Inventories, net	180,035
Property and equipment, net	9,850
Other non-current assets	322,006
Floor plan notes payable	(10,776)
Other long-term liabilities	(2,128)
Assets acquired and liabilities assumed	$ 499,719

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, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Business Combinations [Abstract]
Revenue	$ 3,101,600	$ 3,054,987	$ 5,956,427	$ 5,906,047
Net income	$ 60,678	$ 56,126	$ 111,419	$ 109,162
Basic net income per share (in dollars per share)	$ 2.45	$ 2.24	$ 4.47	$ 4.35
Diluted net income per share (in dollars per share)	$ 2.44	$ 2.24	$ 4.45	$ 4.34

Change in Accounting Policies50

Change in Accounting Policies (Narrative) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Jan. 01, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset associated with future estimated variable consideration	$ 9,200	$ 9,200
Increase (decrease) in retained earnings	$ 1,022,888		$ 922,662
Accounting Standards Update, 2014-09, Future Estimated Variable Consideration
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Asset associated with future estimated variable consideration		9,200
Increase (decrease) in retained earnings		6,500
Accounting Standards Update, 2014-09, Determination And Capitalization Of Direct Costs Incurred
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Increase (decrease) in retained earnings		(5,100)
Prepaid commissions		$ 7,200

Change in Accounting Policies51

Change in Accounting Policies (Schedule of New Accounting Pronouncements and Changes in Accounting Principles) (Details) - USD ($) $ in Thousands	Jun. 30, 2018	Dec. 31, 2017
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	$ 483,995	$ 521,938
Other current assets	46,231	70,847
Other non-current assets	560,714	271,818
Total Assets	5,164,162	4,683,066
Accrued liabilities	254,984	251,717
Deferred income taxes	58,583	56,277
Total Liabilities	4,003,294	3,599,848
Retained earnings	1,022,888	922,662
Total Liabilities and Stockholders' Equity	5,164,162	4,683,066
Trade receivables
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	51,403	$ 45,895
Balances without the adoption of Topic 606
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other current assets	44,994
Other non-current assets	564,367
Total Assets	5,162,947
Accrued liabilities	255,192
Deferred income taxes	57,984
Total Liabilities	4,002,903
Retained earnings	1,022,064
Total Liabilities and Stockholders' Equity	5,162,947
Balances without the adoption of Topic 606 | Trade receivables
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	480,364
Accounting Standards Update 2014-09 | Adjustments
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Other current assets	(1,237)
Other non-current assets	3,653
Total Assets	(1,215)
Accrued liabilities	208
Deferred income taxes	(599)
Total Liabilities	(391)
Retained earnings	(824)
Total Liabilities and Stockholders' Equity	(1,215)
Accounting Standards Update 2014-09 | Adjustments | Trade receivables
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Accounts receivable, net	$ (3,631)

Subsequent Events (Details)

Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions	Jul. 23, 2018	Jul. 27, 2018	Jun. 30, 2018	Jun. 30, 2018	Aug. 29, 2018
Subsequent Event
Subsequent Event [Line Items]
Cash dividends declared per Class A and Class B share (in dollars per share)	$ 0.29
Dividends payable					$ 7
Class A common stock
Subsequent Event [Line Items]
Shares repurchased pursuant to repurchase authorizations (in shares)			640,586	1,683,311
Class A common stock | Subsequent Event
Subsequent Event [Line Items]
Shares repurchased pursuant to repurchase authorizations (in shares)		226,910
Average purchase price per share (in dollars per share)		$ 86.65
2016 Share Repurchase Authorization | Class A common stock
Subsequent Event [Line Items]
Remaining authorized repurchase amount			$ 98.6	$ 98.6
2016 Share Repurchase Authorization | Class A common stock | Subsequent Event
Subsequent Event [Line Items]
Remaining authorized repurchase amount		$ 78.9