Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 26, 2019 | |
Document Information [Line Items] | ||
Entity Registrant Name | LITHIA MOTORS INC | |
Entity Central Index Key | 0001023128 | |
Trading Symbol | lad | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Class A common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 22,349,676 | |
Class B common stock | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding (in shares) | 800,000 |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Current Assets: | ||
Cash and cash equivalents | $ 45 | $ 31.6 |
Accounts receivable, net of allowance for doubtful accounts of $6.9 and $7.2 | 491 | 529.4 |
Inventories, net | 2,441 | 2,365.3 |
Other current assets | 50.9 | 65.1 |
Total Current Assets | 3,027.9 | 2,991.4 |
Property and equipment, net of accumulated depreciation of $250.0 and $240.5 | 1,454.4 | 1,448 |
Operating lease right-of-use assets | 250 | 0 |
Goodwill | 456.8 | 434.9 |
Franchise value | 308.1 | 288.7 |
Other non-current assets | 194.8 | 221 |
Total Assets | 5,692 | 5,384 |
Current Liabilities: | ||
Floor plan notes payable | 359 | 324.4 |
Floor plan notes payable: non-trade | 1,767.2 | 1,733.3 |
Current maturities of long-term debt | 24.6 | 25.9 |
Trade payables | 119.3 | 126.3 |
Accrued liabilities | 315.1 | 283.6 |
Total Current Liabilities | 2,585.2 | 2,493.5 |
Long-term debt, less current maturities | 1,295.7 | 1,358.2 |
Deferred revenue | 124.4 | 121.7 |
Deferred income taxes | 96.4 | 91.2 |
Noncurrent operating lease liabilities | 235.2 | 0 |
Other long-term liabilities | 104.6 | 122.2 |
Total Liabilities | 4,441.5 | 4,186.8 |
Stockholders' Equity: | ||
Preferred stock - no par value; authorized 15.0 shares; none outstanding | 0 | 0 |
Additional paid-in capital | 28 | 35 |
Retained earnings | 1,212.7 | 1,162.1 |
Total Stockholders' Equity | 1,250.5 | 1,197.2 |
Total Liabilities and Stockholders' Equity | 5,692 | 5,384 |
Class A common stock | ||
Stockholders' Equity: | ||
Common stock - Class A and Class B | 9.7 | 0 |
Class B common stock | ||
Stockholders' Equity: | ||
Common stock - Class A and Class B | $ 0.1 | $ 0.1 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parentheticals) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Allowance for doubtful accounts | $ 6.9 | $ 7.2 |
Accumulated depreciation | $ 250 | $ 240.5 |
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) | 22,300,000 | 22,000,000 |
Common stock A and B, shares outstanding (in shares) | 22,300,000 | 22,000,000 |
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) | 800,000 | 1,000,000 |
Common stock A and B, shares outstanding (in shares) | 800,000 | 1,000,000 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Revenues: | ||
Total revenues | $ 2,849.7 | $ 2,659.7 |
Cost of sales: | ||
Total cost of sales | 2,399 | 2,251.6 |
Gross profit | 450.7 | 408.1 |
Asset impairments | 0.5 | 0 |
Selling, general and administrative | 321.8 | 297.5 |
Depreciation and amortization | 19.8 | 16.8 |
Operating income | 108.6 | 93.8 |
Floor plan interest expense | (18.1) | (13.5) |
Other interest expense, net | (15.3) | (11.8) |
Other income, net | 2.6 | 1.3 |
Income before income taxes | 77.8 | 69.8 |
Income tax provision | (21.4) | (17.7) |
Net income | $ 56.4 | $ 52.1 |
Basic net income per share (in dollars per share) | $ 2.43 | $ 2.08 |
Shares used in basic per share calculations (in shares) | 23.2 | 25.1 |
Diluted net income per share (in dollars per share) | $ 2.42 | $ 2.07 |
Shares used in diluted per share calculations (in shares) | 23.2 | 25.2 |
Cash dividends paid per Class A and Class B share (in dollars per share) | $ 0.29 | $ 0.27 |
New vehicle | ||
Revenues: | ||
Total revenues | $ 1,461.1 | $ 1,454.7 |
Cost of sales: | ||
Total cost of sales | 1,375.2 | 1,367.8 |
Used vehicle retail | ||
Revenues: | ||
Total revenues | 827.9 | 715.6 |
Cost of sales: | ||
Total cost of sales | 743.3 | 642 |
Used vehicle wholesale | ||
Revenues: | ||
Total revenues | 77.4 | 76 |
Cost of sales: | ||
Total cost of sales | 76.5 | 75 |
Finance and insurance | ||
Revenues: | ||
Total revenues | 117.5 | 106.5 |
Service, body and parts | ||
Revenues: | ||
Total revenues | 317.4 | 285.7 |
Cost of sales: | ||
Total cost of sales | 157.9 | 147.3 |
Fleet and other | ||
Revenues: | ||
Total revenues | 48.4 | 21.2 |
Cost of sales: | ||
Total cost of sales | $ 46.1 | $ 19.5 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Millions, $ in Millions | Total | Common StockClass A | Common StockClass B | Additional Paid-In Capital | Retained Earnings |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adjustment to adopt new accounting principles | $ 1.4 | $ 1.4 | |||
Balance (in shares) at Dec. 31, 2017 | 23.9 | 1 | |||
Balance at Dec. 31, 2017 | 1,083.2 | $ 149.1 | $ 0.1 | $ 11.3 | 922.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 265.7 | 265.7 | |||
Issuance of stock in connection with employee stock plans (in shares) | 0.1 | ||||
Issuance of stock in connection with employee stock plans | 10.1 | $ 10.1 | |||
Issuance of restricted stock to employees (in shares) | 0.1 | ||||
Repurchase of Class A common stock (in shares) | (2.1) | ||||
Repurchase of Class A common stock | (148.9) | $ (168.5) | 19.6 | ||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | 13.4 | $ 9.3 | 4.1 | ||
Dividends paid | (27.7) | (27.7) | |||
Balance (in shares) at Dec. 31, 2018 | 22 | 1 | |||
Balance at Dec. 31, 2018 | 1,197.2 | $ 0 | $ 0.1 | 35 | 1,162.1 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Adjustment to adopt new accounting principles | 0.9 | 0.9 | |||
Net income | 56.4 | 56.4 | |||
Issuance of stock in connection with employee stock plans (in shares) | 0 | ||||
Issuance of stock in connection with employee stock plans | 2.3 | $ 2.3 | |||
Issuance of restricted stock to employees (in shares) | 0.1 | ||||
Repurchase of Class A common stock | (3.1) | $ (3.1) | |||
Class B common stock converted to Class A common stock (in shares) | 0.2 | 0.2 | |||
Class B common stock converted to Class A common stock | 0 | ||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | 3.5 | $ 10.5 | (7) | ||
Dividends paid | (6.7) | (6.7) | |||
Balance (in shares) at Mar. 31, 2019 | 22.3 | 0.8 | |||
Balance at Mar. 31, 2019 | $ 1,250.5 | $ 9.7 | $ 0.1 | $ 28 | $ 1,212.7 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | ||
Cash flows from operating activities: | ||||
Net income | $ 56.4 | $ 52.1 | $ 265.7 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Asset impairments | 0.5 | 0 | ||
Depreciation and amortization | 19.8 | 16.8 | ||
Stock-based compensation | 3.5 | 3.6 | ||
Gain on disposal of franchise | 0.1 | 0 | ||
Deferred income taxes | 5.2 | 2.7 | ||
(Increase) decrease (net of acquisitions and dispositions): | ||||
Accounts receivable, net | 49.9 | 42.6 | ||
Inventories | (81.4) | (98.9) | ||
Other assets | 9 | 14.7 | ||
Increase (decrease) (net of acquisitions and dispositions): | ||||
Floor plan notes payable | 34.6 | 17.7 | ||
Trade payables | (6.4) | 6.9 | ||
Accrued liabilities | (14.5) | (13.6) | ||
Other long-term liabilities and deferred revenue | 0.5 | 4.3 | ||
Net cash provided by operating activities | 77.2 | 48.9 | ||
Cash flows from investing activities: | ||||
Capital expenditures | (29.1) | (42) | ||
Proceeds from sales of assets | 0.4 | 0.1 | ||
Cash paid for other investments | (6.6) | (7.6) | ||
Cash paid for acquisitions, net of cash acquired | 0 | (324.4) | ||
Proceeds from sales of stores | 0 | 0.4 | ||
Net cash used in investing activities | (35.3) | (373.5) | ||
Cash flows from financing activities: | ||||
Borrowings on floor plan notes payable, net: non-trade | 43.5 | 47.8 | ||
Borrowings on lines of credit | 570 | 894 | ||
Repayments on lines of credit | (625) | (586.7) | ||
Principal payments on long-term debt and capital leases, scheduled | (6.2) | (4.7) | ||
Principal payments on long-term debt and capital leases, other | (3.3) | 0 | ||
Payments of debt issuance costs | 0 | 0 | ||
Proceeds from issuance of common stock | 2.3 | 1.9 | ||
Repurchase of common stock | (3.1) | (8.3) | ||
Dividends paid | (6.7) | (6.8) | ||
Payments of contingent consideration related to acquisitions | 0 | (0.8) | ||
Net cash (used in) provided by financing activities | (28.5) | 336.4 | ||
Increase in cash and cash equivalents | 13.4 | 11.8 | ||
Cash and cash equivalents at beginning of period | 31.6 | 57.2 | 57.2 | |
Cash and cash equivalents at end of period | 45 | 69 | $ 31.6 | |
Supplemental disclosure of cash flow information: | ||||
Cash paid during the period for interest | 37.9 | 30.3 | ||
Cash paid during the period for income taxes, net | 0.2 | 1.2 | ||
Floor plan debt paid in connection with store disposals | 4.8 | 3.8 | ||
Supplemental schedule of non-cash activities: | ||||
Debt assumed in connection with acquisitions | 0 | 10.7 | ||
ROU assets obtained in exchange for lease liabilities 1 | [1] | $ 257 | $ 0 | |
[1] | Amounts for the three months ended March 31, 2019 include the transition adjustment for the adoption of Topic 842. |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2019 | |
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 March 31, 2019 , and for the three -months ended March 31, 2019 and 2018 . 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 2018 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2018 , is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 22, 2019 . The unaudited interim condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our 2018 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 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires leases with durations greater than twelve months to be recognized on the balance sheet, as right-of-use assets with corresponding operating lease liabilities. In July 2018, the FASB issued ASU No. 2018-11, "Targeted Improvements - Leases (Topic 842)." This update provides an optional transition method that allows entities to elect to apply the standard using the modified retrospective approach at its effective date, versus recasting the prior periods presented. If elected, an entity would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. We adopted the new standard as of January 1, 2019 using the transition method that provides for a cumulative-effect adjustment to retained earnings upon adoption. The Consolidated Financial Statements for the three months ended March 31, 2019 are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with our historical accounting policy. We elected the 'package of practical expedients,' which permits us to not reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We elected the short-term lease recognition exemption for all leases that qualify. We have both real estate leases and equipment leases that are impacted by the new guidance. Most of our leases do not provide an implicit rate, therefore we use our incremental borrowing rate at the commencement date in determining the present value of lease payments. Adoption of the new standard resulted in the derecognition of a deferred gain from prior completed sale-leaseback transactions. This adjustment, net of tax, was recorded as $0.9 million increase in retained earnings. See Note 10. The impact of adopting Topic 842 on the accompanying Condensed Consolidated Balance Sheet as of January 1, 2019 was as follows (in millions): Impact on Consolidated Balance Sheets December 31, 2018 Adjustments January 1, 2019 Operating lease right-of-use assets $ — $ 256.4 $ 256.4 Total Assets 5,384.0 256.4 5,640.4 Operating lease liabilities: Accrued liabilities 283.6 26.1 309.7 Deferred revenue 121.7 (1.3 ) 120.4 Noncurrent operating lease liabilities — 241.0 241.0 Other long-term liabilities 122.2 (10.3 ) 111.9 Total Liabilities 4,186.8 255.5 4,442.3 Retained earnings 1,162.1 0.9 1,163.0 Total Liabilities and Stockholders' Equity 5,384.0 256.4 5,640.4 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. |
Contract Liabilities and Assets
Contract Liabilities and Assets | 3 Months Ended |
Mar. 31, 2019 | |
Disaggregation of Revenue [Abstract] | |
Contract Liabilities and Assets | Contract Liabilities and Assets Contract Liabilities 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 $154.5 million and $149.6 million as of March 31, 2019 , and December 31, 2018 , respectively; and we recognized $5.9 million of revenue in the three months ended March 31, 2019 , related to our contract liability balance at December 31, 2018 . Our contract liability balance is included in accrued liabilities and deferred revenue. Contract Assets Revenue from finance and insurance sales is recognized, net of estimated charge-backs, at the time of the sale of the related 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. Our contract asset balances associated with future estimated variable consideration were $9.0 million and $9.2 million as of March 31, 2019 and December 31, 2018 , respectively; and is included in trade receivables and other non-current assets. |
Accounts Receivable and Contrac
Accounts Receivable and Contract Assets | 3 Months Ended |
Mar. 31, 2019 | |
Accounts Receivable, Net [Abstract] | |
Accounts Receivable and Contract Assets | Accounts Receivable and Contract Assets Accounts receivable consisted of the following (in millions): March 31, 2019 December 31, 2018 Contracts in transit $ 259.5 $ 294.0 Trade receivables 54.0 54.3 Vehicle receivables 49.9 51.6 Manufacturer receivables 95.2 105.5 Auto loan receivables 62.1 61.5 Other receivables 14.8 6.8 535.5 573.7 Less: Allowance for doubtful accounts (6.9 ) (7.2 ) Less: Long-term portion of accounts receivable, net (37.6 ) (37.1 ) Total accounts receivable, net $ 491.0 $ 529.4 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 | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories The components of inventories, net, consisted of the following (in millions): March 31, 2019 December 31, 2018 New vehicles $ 1,784.9 $ 1,700.1 Used vehicles 568.6 576.8 Parts and accessories 87.5 88.4 Total inventories $ 2,441.0 $ 2,365.3 |
Goodwill and Franchise Value
Goodwill and Franchise Value | 3 Months Ended |
Mar. 31, 2019 | |
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 millions): Domestic Import Luxury Consolidated Balance as of December 31, 2017 ¹ $ 114.0 $ 104.3 $ 38.0 $ 256.3 Additions through acquisitions 2 51.4 85.8 43.5 180.7 Reductions through divestitures (0.9 ) (1.2 ) — (2.1 ) Balance as of December 31, 2018 ¹ 164.5 188.9 81.5 434.9 Adjustments to purchase price allocations 3 1.6 1.6 1.9 5.1 Additions through acquisitions 3 5.9 8.8 2.1 16.8 Balance as of March 31, 2019 1, 4 $ 172.0 $ 199.3 $ 85.5 $ 456.8 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 2017 acquisitions of the Baierl Auto Group, the Downtown LA Auto Group, Crater Lake Ford Lincoln, Crater Lake Mazda, Albany CJD Fiat and the 2018 acquisition of Broadway Ford were finalized in 2018. Also, our purchase price allocation for the 2018 acquisition of Prestige Auto Group was preliminary and was allocated to our segments in 2018. As a result, we added $180.7 million of goodwill. 3 Our purchase price allocation for the acquisitions of the Ray Laks Honda, Ray Laks Acura, Day Auto Group, and Prestige Auto Group were finalized in 2019. As a result, we added $21.9 million of goodwill. 4 Our purchase price allocation is preliminary for the 2018 acquisition of Buhler Ford and has not been included in the above goodwill additions. The changes in the carrying amounts of franchise value are as follows (in millions): Franchise Value Balance as of December 31, 2017 $ 187.0 Additions through acquisitions 1 103.5 Reductions through divestitures (1.8 ) Balance as of December 31, 2018 288.7 Adjustments to purchase price allocations 2 3.5 Additions through acquisitions 2 18.9 Reductions through divestitures (3.0 ) Balance as of March 31, 2019 3 $ 308.1 1 Our purchase price allocation for the 2017 acquisitions of the Baierl Auto Group, the Downtown LA Auto Group, Crater Lake Ford Lincoln, Crater Lake Mazda, Albany CJD Fiat and the 2018 acquisition of Broadway Ford were finalized in 2018. Also, our purchase price allocation for the 2018 acquisition of Prestige Auto Group was preliminary and was allocated to our segments in 2018. As a result, we added $103.5 million of franchise value. 2 Our purchase price allocation for the acquisitions of the Ray Laks Honda, Ray Laks Acura, Day Auto Group, and Prestige Auto Group were finalized in 2019. As a result, we added $22.4 million of franchise value. 3 Our purchase price allocation is preliminary for the 2018 acquisition of Buhler Ford and has not been included in the above franchise value additions. |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Factors used in determining the fair value of our financial assets and liabilities are summarized into three broad categories: • Level 1 - quoted prices in active markets for identical securities; • Level 2 - other significant observable inputs, including quoted prices for similar securities, interest rates, prepayment spreads, credit risk; and • Level 3 - significant unobservable inputs, including our own assumptions in determining fair value. 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 March 31, 2019 , our real estate mortgages and other debt, which includes capital leases, had maturity dates between May 1, 2020 , and August 31, 2038 . We estimate the value of other long-lived assets that are recorded at fair value on a non-recurring basis on a market valuation approach. We use prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets, as well as our historical experience in divestitures, acquisitions and real estate transactions. Additionally, we may use a cost valuation approach to value long-lived assets when a market valuation approach is unavailable. Under this approach, we determine the cost to replace the service capacity of an asset, adjusted for physical and economic obsolescence. When available, we use valuation inputs from independent valuation experts, such as real estate appraisers and brokers, to corroborate our estimates of fair value. Real estate appraisers' and brokers' valuations are typically developed using one or more valuation techniques including market, income and replacement cost approaches. Because these valuations contain unobservable inputs, we classified the measurement of fair value of long-lived assets as Level 3. There were no changes to our valuation techniques during the three -month period ended March 31, 2019 . 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 millions): March 31, 2019 December 31, 2018 Carrying value 5.25% Senior notes due 2025 $ 300.0 $ 300.0 Real estate mortgages and other debt 441.8 445.8 $ 741.8 $ 745.8 Fair value 5.25% Senior notes due 2025 $ 301.1 $ 278.6 Real estate mortgages and other debt 435.2 448.7 $ 736.3 $ 727.3 Below are our long-lived assets that are measured at fair value (in millions): Fair Value at March 31, 2019 Level 1 Level 2 Level 3 Measured on a non-recurring basis: Long-lived assets held and used: Certain buildings and improvements $ — $ — $ 5.7 Fair Value at December 31, 2018 Level 1 Level 2 Level 3 Measured on a non-recurring basis: Long-lived assets held and used: Certain buildings and improvements $ — $ — $ 2.3 Long-lived assets held and used are reviewed for impairment whenever events or circumstances indicate that the carrying amount of the assets may not be recoverable. During the first quarter of 2019, we evaluated the future undiscounted net cash flows associated with certain properties and determined the carrying value was not recoverable and exceeded the estimated fair value. As a result of this evaluation, we recorded $0.5 million of impairment charges associated with these properties in the first quarter of 2019. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments On September 12, 2018, we invested $54 million in Shift Technologies, Inc., a San Francisco-based digital retailer, in exchange for Series D convertible preferred stock. We have determined that our investment in Shift does not meet the criteria for a variable interest entity, and we do not have control or significant influence over Shift. As a result, we currently recorded a cost method investment within other non-current assets on our Consolidated Balance Sheet as of March 31, 2019 . As of March 31, 2019 , there were no identified events or changes in circumstances that would have a significant effect on the value of the investment. We did not record any impairment charges associated with this investment in the three -month period ended March 31, 2019 . |
Net Income Per Share of Class A
Net Income Per Share of Class A and Class B Common Stock | 3 Months Ended |
Mar. 31, 2019 | |
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 millions, except per share amounts): Three Months Ended March 31, 2019 2018 (in millions, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 54.4 $ 2.0 $ 50.0 $ 2.1 Reallocation of net income due to conversion of Class B to Class A common shares outstanding 0.3 — 0.3 — Conversion of Class B common shares into Class A common shares 1.7 — 1.8 — Net income applicable to common stockholders - diluted $ 56.4 $ 2.0 $ 52.1 $ 2.1 Weighted average common shares outstanding – basic 22.3 0.8 24.1 1.0 Conversion of Class B common shares into Class A common shares 0.8 — 1.0 — Effect of dilutive stock options on weighted average common shares 0.1 — 0.1 — Weighted average common shares outstanding – diluted 23.2 0.8 25.2 1.0 Net income per common share - basic $ 2.43 $ 2.43 $ 2.08 $ 2.08 Net income per common share - diluted $ 2.42 $ 2.42 $ 2.07 $ 2.07 The effect of antidilutive securities on Class A and Class B stock was evaluated for the three month periods ended March 31, 2019 and 2018 and was determined to be immaterial. |
Segments
Segments | 3 Months Ended |
Mar. 31, 2019 | |
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 millions): Three Months Ended 2019 2018 Revenues: Domestic New vehicle $ 492.4 $ 513.5 Used vehicle retail 300.4 264.8 Used vehicle wholesale 29.6 33.6 Finance and insurance 41.8 40.0 Service, body and parts 115.4 107.2 Fleet and other 17.1 11.5 996.7 970.6 Import New vehicle 632.6 667.6 Used vehicle retail 341.3 307.7 Used vehicle wholesale 27.9 28.2 Finance and insurance 54.8 51.7 Service, body and parts 117.7 109.6 Fleet and other 17.3 5.6 1,191.6 1,170.4 Luxury New vehicle 339.4 278.5 Used vehicle retail 186.3 142.9 Used vehicle wholesale 19.9 14.2 Finance and insurance 16.5 12.3 Service, body and parts 79.1 64.8 Fleet and other 13.7 3.8 654.9 516.5 2,843.2 2,657.5 Corporate and other 6.5 2.2 $ 2,849.7 $ 2,659.7 Segment income 1 : Domestic $ 19.8 $ 25.6 Import 30.0 23.0 Luxury 8.0 6.9 57.8 55.5 Corporate and other 52.5 41.6 Depreciation and amortization (19.8 ) (16.8 ) Other interest expense (15.3 ) (11.8 ) Other income, net 2.6 1.3 Income before income taxes $ 77.8 $ 69.8 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. March 31, 2019 December 31, 2018 Total assets: Domestic $ 1,506.3 $ 1,488.0 Import 1,317.1 1,224.2 Luxury 898.0 934.6 Corporate and other 1,970.6 1,737.2 $ 5,692.0 $ 5,384.0 |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements 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. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases Lease Accounting We lease certain dealerships, office space, land and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We have elected not to bifurcate lease and nonlease components related to leases of real property. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 26 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do no contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. As described further in "Note 1. Interim Financial Statements," we adopted Topic 842 as of January 1, 2019. Prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting under Topic 840. The table below presents the lease-related liabilities recorded on the balance sheet (in millions): March 31, 2019 December 31, 2018 Operating lease liabilities: Current portion included in accrued liabilities $ 25.5 $ — Long-term portion of lease liabilities 235.2 — Total operating lease liabilities 260.7 — Financing lease liabilities: Current portion included in Current maturities of long-term debt 1.0 2.0 Long-term portion of lease liabilities in other debt 29.9 28.8 Total financing lease liabilities 1 30.9 30.8 Total lease liabilities $ 291.6 $ 30.8 Weighted-average remaining lease term: Operating leases 13 years Finance leases 14 years Weighted-average discount rate: Operating leases 5.07 % Finance leases 5.81 % 1 Corresponding finance lease assets are not material and are included in property, plant and equipment, net of accumulated depreciation. The components of lease costs, which were included in Selling, general and administrative in our Consolidated Statements of Operations, were as follows (in millions): Three Months Ended March 31, 2019 Operating lease cost 1 $ 12.0 Variable lease cost 2 0.8 Sublease income (1.0 ) Total lease costs $ 11.8 1 Includes short-term and month-to-month lease costs, which are immaterial. 2 Variable lease cost generally includes reimbursement for actual costs incurred by our lessors for common area maintenance, property taxes and insurance on leased real estate. As of March 31, 2019, the maturities of our operating lease liabilities were as follows (in millions): Operating Leases Remainder of 2019 $ 28.7 Year Ending December 31, 2020 35.7 2021 32.5 2022 30.0 2023 25.0 Thereafter 216.3 Total minimum lease payments 368.2 Less: Present value adjustment (107.5 ) Operating lease liabilities $ 260.7 |
Leases | Leases Lease Accounting We lease certain dealerships, office space, land and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We have elected not to bifurcate lease and nonlease components related to leases of real property. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one to 26 years or more. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do no contain any material residual value guarantees or material restrictive covenants. We rent or sublease certain real estate to third parties. As described further in "Note 1. Interim Financial Statements," we adopted Topic 842 as of January 1, 2019. Prior period amounts have not been adjusted and continue to be reported in accordance with our historic accounting under Topic 840. The table below presents the lease-related liabilities recorded on the balance sheet (in millions): March 31, 2019 December 31, 2018 Operating lease liabilities: Current portion included in accrued liabilities $ 25.5 $ — Long-term portion of lease liabilities 235.2 — Total operating lease liabilities 260.7 — Financing lease liabilities: Current portion included in Current maturities of long-term debt 1.0 2.0 Long-term portion of lease liabilities in other debt 29.9 28.8 Total financing lease liabilities 1 30.9 30.8 Total lease liabilities $ 291.6 $ 30.8 Weighted-average remaining lease term: Operating leases 13 years Finance leases 14 years Weighted-average discount rate: Operating leases 5.07 % Finance leases 5.81 % 1 Corresponding finance lease assets are not material and are included in property, plant and equipment, net of accumulated depreciation. The components of lease costs, which were included in Selling, general and administrative in our Consolidated Statements of Operations, were as follows (in millions): Three Months Ended March 31, 2019 Operating lease cost 1 $ 12.0 Variable lease cost 2 0.8 Sublease income (1.0 ) Total lease costs $ 11.8 1 Includes short-term and month-to-month lease costs, which are immaterial. 2 Variable lease cost generally includes reimbursement for actual costs incurred by our lessors for common area maintenance, property taxes and insurance on leased real estate. As of March 31, 2019, the maturities of our operating lease liabilities were as follows (in millions): Operating Leases Remainder of 2019 $ 28.7 Year Ending December 31, 2020 35.7 2021 32.5 2022 30.0 2023 25.0 Thereafter 216.3 Total minimum lease payments 368.2 Less: Present value adjustment (107.5 ) Operating lease liabilities $ 260.7 |
Interim Financial Statements (P
Interim Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation These condensed Consolidated Financial Statements contain unaudited information as of March 31, 2019 , and for the three -months ended March 31, 2019 and 2018 . 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 2018 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2018 , is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 22, 2019 . The unaudited interim condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our 2018 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. |
Changes in Accounting Policies | In 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842),” which requires leases with durations greater than twelve months to be recognized on the balance sheet, as right-of-use assets with corresponding operating lease liabilities. In July 2018, the FASB issued ASU No. 2018-11, "Targeted Improvements - Leases (Topic 842)." This update provides an optional transition method that allows entities to elect to apply the standard using the modified retrospective approach at its effective date, versus recasting the prior periods presented. If elected, an entity would recognize a cumulative-effect adjustment to the opening balance of retained earnings in the year of adoption. We adopted the new standard as of January 1, 2019 using the transition method that provides for a cumulative-effect adjustment to retained earnings upon adoption. The Consolidated Financial Statements for the three months ended March 31, 2019 are presented under the new standard, while comparative years presented are not adjusted and continue to be reported in accordance with our historical accounting policy. We elected the 'package of practical expedients,' which permits us to not reassess under the new standard our prior conclusions about lease identification, lease classification and initial direct costs. We elected the short-term lease recognition exemption for all leases that qualify. We have both real estate leases and equipment leases that are impacted by the new guidance. Most of our leases do not provide an implicit rate, therefore we use our incremental borrowing rate at the commencement date in determining the present value of lease payments. Adoption of the new standard resulted in the derecognition of a deferred gain from prior completed sale-leaseback transactions. This adjustment, net of tax, was recorded as $0.9 million increase in retained earnings. See Note 10. |
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. |
Revenue Recognition | Contract Liabilities 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 $154.5 million and $149.6 million as of March 31, 2019 , and December 31, 2018 , respectively; and we recognized $5.9 million of revenue in the three months ended March 31, 2019 , related to our contract liability balance at December 31, 2018 . Our contract liability balance is included in accrued liabilities and deferred revenue. Contract Assets Revenue from finance and insurance sales is recognized, net of estimated charge-backs, at the time of the sale of the related 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. Our contract asset balances associated with future estimated variable consideration were $9.0 million and $9.2 million as of March 31, 2019 and December 31, 2018 , respectively; and is included in trade receivables and other non-current assets. |
Accounts Receivable and Contract Assets | 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. |
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 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. |
Interim Financial Statements (T
Interim Financial Statements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Summary of Impact of Adopting Topic 842 on the Condensed Consolidated Balance Sheet | The impact of adopting Topic 842 on the accompanying Condensed Consolidated Balance Sheet as of January 1, 2019 was as follows (in millions): Impact on Consolidated Balance Sheets December 31, 2018 Adjustments January 1, 2019 Operating lease right-of-use assets $ — $ 256.4 $ 256.4 Total Assets 5,384.0 256.4 5,640.4 Operating lease liabilities: Accrued liabilities 283.6 26.1 309.7 Deferred revenue 121.7 (1.3 ) 120.4 Noncurrent operating lease liabilities — 241.0 241.0 Other long-term liabilities 122.2 (10.3 ) 111.9 Total Liabilities 4,186.8 255.5 4,442.3 Retained earnings 1,162.1 0.9 1,163.0 Total Liabilities and Stockholders' Equity 5,384.0 256.4 5,640.4 |
Accounts Receivable and Contr_2
Accounts Receivable and Contract Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Accounts Receivable, Net [Abstract] | |
Schedule of Accounts Receivable | Accounts receivable consisted of the following (in millions): March 31, 2019 December 31, 2018 Contracts in transit $ 259.5 $ 294.0 Trade receivables 54.0 54.3 Vehicle receivables 49.9 51.6 Manufacturer receivables 95.2 105.5 Auto loan receivables 62.1 61.5 Other receivables 14.8 6.8 535.5 573.7 Less: Allowance for doubtful accounts (6.9 ) (7.2 ) Less: Long-term portion of accounts receivable, net (37.6 ) (37.1 ) Total accounts receivable, net $ 491.0 $ 529.4 |
Inventories (Tables)
Inventories (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | The components of inventories, net, consisted of the following (in millions): March 31, 2019 December 31, 2018 New vehicles $ 1,784.9 $ 1,700.1 Used vehicles 568.6 576.8 Parts and accessories 87.5 88.4 Total inventories $ 2,441.0 $ 2,365.3 |
Goodwill and Franchise Value (T
Goodwill and Franchise Value (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amounts of goodwill are as follows (in millions): Domestic Import Luxury Consolidated Balance as of December 31, 2017 ¹ $ 114.0 $ 104.3 $ 38.0 $ 256.3 Additions through acquisitions 2 51.4 85.8 43.5 180.7 Reductions through divestitures (0.9 ) (1.2 ) — (2.1 ) Balance as of December 31, 2018 ¹ 164.5 188.9 81.5 434.9 Adjustments to purchase price allocations 3 1.6 1.6 1.9 5.1 Additions through acquisitions 3 5.9 8.8 2.1 16.8 Balance as of March 31, 2019 1, 4 $ 172.0 $ 199.3 $ 85.5 $ 456.8 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 2017 acquisitions of the Baierl Auto Group, the Downtown LA Auto Group, Crater Lake Ford Lincoln, Crater Lake Mazda, Albany CJD Fiat and the 2018 acquisition of Broadway Ford were finalized in 2018. Also, our purchase price allocation for the 2018 acquisition of Prestige Auto Group was preliminary and was allocated to our segments in 2018. As a result, we added $180.7 million of goodwill. 3 Our purchase price allocation for the acquisitions of the Ray Laks Honda, Ray Laks Acura, Day Auto Group, and Prestige Auto Group were finalized in 2019. As a result, we added $21.9 million of goodwill. 4 Our purchase price allocation is preliminary for the 2018 acquisition of Buhler Ford and has not been included in the above goodwill additions. |
Schedule of Franchise Value | The changes in the carrying amounts of franchise value are as follows (in millions): Franchise Value Balance as of December 31, 2017 $ 187.0 Additions through acquisitions 1 103.5 Reductions through divestitures (1.8 ) Balance as of December 31, 2018 288.7 Adjustments to purchase price allocations 2 3.5 Additions through acquisitions 2 18.9 Reductions through divestitures (3.0 ) Balance as of March 31, 2019 3 $ 308.1 1 Our purchase price allocation for the 2017 acquisitions of the Baierl Auto Group, the Downtown LA Auto Group, Crater Lake Ford Lincoln, Crater Lake Mazda, Albany CJD Fiat and the 2018 acquisition of Broadway Ford were finalized in 2018. Also, our purchase price allocation for the 2018 acquisition of Prestige Auto Group was preliminary and was allocated to our segments in 2018. As a result, we added $103.5 million of franchise value. 2 Our purchase price allocation for the acquisitions of the Ray Laks Honda, Ray Laks Acura, Day Auto Group, and Prestige Auto Group were finalized in 2019. As a result, we added $22.4 million of franchise value. 3 Our purchase price allocation is preliminary for the 2018 acquisition of Buhler Ford and has not been included in the above franchise value additions. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 millions): March 31, 2019 December 31, 2018 Carrying value 5.25% Senior notes due 2025 $ 300.0 $ 300.0 Real estate mortgages and other debt 441.8 445.8 $ 741.8 $ 745.8 Fair value 5.25% Senior notes due 2025 $ 301.1 $ 278.6 Real estate mortgages and other debt 435.2 448.7 $ 736.3 $ 727.3 |
Summary of Long-Lived Assets Measured at Fair Value | Below are our long-lived assets that are measured at fair value (in millions): Fair Value at March 31, 2019 Level 1 Level 2 Level 3 Measured on a non-recurring basis: Long-lived assets held and used: Certain buildings and improvements $ — $ — $ 5.7 Fair Value at December 31, 2018 Level 1 Level 2 Level 3 Measured on a non-recurring basis: Long-lived assets held and used: Certain buildings and improvements $ — $ — $ 2.3 |
Net Income Per Share of Class_2
Net Income Per Share of Class A and Class B Common Stock (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
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 millions, except per share amounts): Three Months Ended March 31, 2019 2018 (in millions, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 54.4 $ 2.0 $ 50.0 $ 2.1 Reallocation of net income due to conversion of Class B to Class A common shares outstanding 0.3 — 0.3 — Conversion of Class B common shares into Class A common shares 1.7 — 1.8 — Net income applicable to common stockholders - diluted $ 56.4 $ 2.0 $ 52.1 $ 2.1 Weighted average common shares outstanding – basic 22.3 0.8 24.1 1.0 Conversion of Class B common shares into Class A common shares 0.8 — 1.0 — Effect of dilutive stock options on weighted average common shares 0.1 — 0.1 — Weighted average common shares outstanding – diluted 23.2 0.8 25.2 1.0 Net income per common share - basic $ 2.43 $ 2.43 $ 2.08 $ 2.08 Net income per common share - diluted $ 2.42 $ 2.42 $ 2.07 $ 2.07 The effect of antidilutive securities on Class A and Class B stock was evaluated for the three month periods ended March 31, 2019 and 2018 and was determined to be immaterial. |
Segments (Tables)
Segments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Certain Information on a Segment Basis | Certain financial information on a segment basis is as follows (in millions): Three Months Ended 2019 2018 Revenues: Domestic New vehicle $ 492.4 $ 513.5 Used vehicle retail 300.4 264.8 Used vehicle wholesale 29.6 33.6 Finance and insurance 41.8 40.0 Service, body and parts 115.4 107.2 Fleet and other 17.1 11.5 996.7 970.6 Import New vehicle 632.6 667.6 Used vehicle retail 341.3 307.7 Used vehicle wholesale 27.9 28.2 Finance and insurance 54.8 51.7 Service, body and parts 117.7 109.6 Fleet and other 17.3 5.6 1,191.6 1,170.4 Luxury New vehicle 339.4 278.5 Used vehicle retail 186.3 142.9 Used vehicle wholesale 19.9 14.2 Finance and insurance 16.5 12.3 Service, body and parts 79.1 64.8 Fleet and other 13.7 3.8 654.9 516.5 2,843.2 2,657.5 Corporate and other 6.5 2.2 $ 2,849.7 $ 2,659.7 Segment income 1 : Domestic $ 19.8 $ 25.6 Import 30.0 23.0 Luxury 8.0 6.9 57.8 55.5 Corporate and other 52.5 41.6 Depreciation and amortization (19.8 ) (16.8 ) Other interest expense (15.3 ) (11.8 ) Other income, net 2.6 1.3 Income before income taxes $ 77.8 $ 69.8 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 | March 31, 2019 December 31, 2018 Total assets: Domestic $ 1,506.3 $ 1,488.0 Import 1,317.1 1,224.2 Luxury 898.0 934.6 Corporate and other 1,970.6 1,737.2 $ 5,692.0 $ 5,384.0 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Schedule of Lease-Related Liabilities Recorded on the Balance Sheet | The table below presents the lease-related liabilities recorded on the balance sheet (in millions): March 31, 2019 December 31, 2018 Operating lease liabilities: Current portion included in accrued liabilities $ 25.5 $ — Long-term portion of lease liabilities 235.2 — Total operating lease liabilities 260.7 — Financing lease liabilities: Current portion included in Current maturities of long-term debt 1.0 2.0 Long-term portion of lease liabilities in other debt 29.9 28.8 Total financing lease liabilities 1 30.9 30.8 Total lease liabilities $ 291.6 $ 30.8 Weighted-average remaining lease term: Operating leases 13 years Finance leases 14 years Weighted-average discount rate: Operating leases 5.07 % Finance leases 5.81 % 1 Corresponding finance lease assets are not material and are included in property, plant and equipment, net of accumulated depreciation. |
Schedule of Lease Costs | The components of lease costs, which were included in Selling, general and administrative in our Consolidated Statements of Operations, were as follows (in millions): Three Months Ended March 31, 2019 Operating lease cost 1 $ 12.0 Variable lease cost 2 0.8 Sublease income (1.0 ) Total lease costs $ 11.8 1 Includes short-term and month-to-month lease costs, which are immaterial. 2 Variable lease cost generally includes reimbursement for actual costs incurred by our lessors for common area maintenance, property taxes and insurance on leased real estate. |
Schedule of Maturities of Operating Lease Liabilities | As of March 31, 2019, the maturities of our operating lease liabilities were as follows (in millions): Operating Leases Remainder of 2019 $ 28.7 Year Ending December 31, 2020 35.7 2021 32.5 2022 30.0 2023 25.0 Thereafter 216.3 Total minimum lease payments 368.2 Less: Present value adjustment (107.5 ) Operating lease liabilities $ 260.7 |
Interim Financial Statements (D
Interim Financial Statements (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | $ 250 | $ 256.4 | $ 0 |
Total Assets | 5,692 | 5,640.4 | 5,384 |
Accrued liabilities | 315.1 | 309.7 | 283.6 |
Deferred revenue | 124.4 | 120.4 | 121.7 |
Noncurrent operating lease liabilities | 235.2 | 241 | 0 |
Other long-term liabilities | 104.6 | 111.9 | 122.2 |
Total Liabilities | 4,441.5 | 4,442.3 | 4,186.8 |
Retained earnings | 1,212.7 | 1,163 | 1,162.1 |
Total Liabilities and Stockholders' Equity | $ 5,692 | 5,640.4 | $ 5,384 |
Accounting Standards Update 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating lease right-of-use assets | 256.4 | ||
Total Assets | 256.4 | ||
Accrued liabilities | 26.1 | ||
Deferred revenue | (1.3) | ||
Noncurrent operating lease liabilities | 241 | ||
Other long-term liabilities | (10.3) | ||
Total Liabilities | 255.5 | ||
Retained earnings | 0.9 | ||
Total Liabilities and Stockholders' Equity | $ 256.4 |
Contract Liabilities and Asse_2
Contract Liabilities and Assets (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Disaggregation of Revenue [Abstract] | ||
Contract liability | $ 154.5 | $ 149.6 |
Contract liability, revenue recognized | 5.9 | |
Contract asset | $ 9 | $ 9.2 |
Accounts Receivable and Contr_3
Accounts Receivable and Contract Assets (Summary of Accounts Receivable) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 535.5 | $ 573.7 |
Less: Allowance for doubtful accounts | (6.9) | (7.2) |
Less: Long-term portion of accounts receivable, net | (37.6) | (37.1) |
Accounts receivable, net | $ 491 | 529.4 |
Period that contracts in transit are outstanding | 10 days | |
Threshold period for interest to bear on receivables | 60 days | |
Contracts in transit | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 259.5 | 294 |
Trade receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 54 | 54.3 |
Vehicle receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 49.9 | 51.6 |
Manufacturer receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 95.2 | 105.5 |
Auto loan receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | 62.1 | 61.5 |
Other receivables | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Accounts receivable | $ 14.8 | $ 6.8 |
Inventories (Components of Inve
Inventories (Components of Inventories, net) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Total inventories | $ 2,441 | $ 2,365.3 |
New vehicles | ||
Inventory [Line Items] | ||
Total inventories | 1,784.9 | 1,700.1 |
Used vehicles | ||
Inventory [Line Items] | ||
Total inventories | 568.6 | 576.8 |
Parts and accessories | ||
Inventory [Line Items] | ||
Total inventories | $ 87.5 | $ 88.4 |
Goodwill and Franchise Value (S
Goodwill and Franchise Value (Schedule of Goodwill) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2008 | |
Goodwill [Roll Forward] | |||
Balance | $ 434.9 | $ 256.3 | |
Adjustments to purchase price allocations | 5.1 | ||
Additions through acquisitions | 16.8 | 180.7 | |
Reductions through divestitures | (2.1) | ||
Balance | 456.8 | 434.9 | |
Accumulated impairment loss | $ 299.3 | ||
Goodwill acquired including purchase accounting adjustments | 21.9 | ||
Domestic | |||
Goodwill [Roll Forward] | |||
Balance | 164.5 | 114 | |
Adjustments to purchase price allocations | 1.6 | ||
Additions through acquisitions | 5.9 | 51.4 | |
Reductions through divestitures | (0.9) | ||
Balance | 172 | 164.5 | |
Import | |||
Goodwill [Roll Forward] | |||
Balance | 188.9 | 104.3 | |
Adjustments to purchase price allocations | 1.6 | ||
Additions through acquisitions | 8.8 | 85.8 | |
Reductions through divestitures | (1.2) | ||
Balance | 199.3 | 188.9 | |
Luxury | |||
Goodwill [Roll Forward] | |||
Balance | 81.5 | 38 | |
Adjustments to purchase price allocations | 1.9 | ||
Additions through acquisitions | 2.1 | 43.5 | |
Reductions through divestitures | 0 | ||
Balance | $ 85.5 | $ 81.5 |
Goodwill and Franchise Value _2
Goodwill and Franchise Value (Schedule of Franchise Value) (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Indefinite-lived Intangible Assets [Roll Forward] | ||
Balance | $ 288.7 | $ 187 |
Adjustments to purchase price allocations | 3.5 | |
Additions through acquisitions | 18.9 | 103.5 |
Reductions through divestitures | (3) | (1.8) |
Balance | 308.1 | $ 288.7 |
Franchise value acquired, including purchase accounting adjustments | $ 22.4 |
Fair Value Measurements (Long-t
Fair Value Measurements (Long-term Fixed Interest Rate Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
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% | |
Carrying value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 741.8 | $ 745.8 |
Carrying value | Senior Notes | Senior Notes Due 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 300 | 300 |
Carrying value | Real estate mortgages and other debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 441.8 | 445.8 |
Fair value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 736.3 | 727.3 |
Fair value | Senior Notes | Senior Notes Due 2025 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | 301.1 | 278.6 |
Fair value | Real estate mortgages and other debt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt | $ 435.2 | $ 448.7 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on a Non-recurring Basis) (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certain buildings and improvements | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certain buildings and improvements | 0 | 0 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Certain buildings and improvements | $ 5.7 | $ 2.3 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | ||
Asset impairments | $ 0.5 | $ 0 |
Investments (Details)
Investments (Details) $ in Millions | Sep. 12, 2018USD ($) |
Investments, Debt and Equity Securities [Abstract] | |
Investment in Shift Technologies, Inc. | $ 54 |
Net Income Per Share of Class_3
Net Income Per Share of Class A and Class B Common Stock (Earnings Per Share Reconciliation) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Weighted average common shares outstanding - basic (in shares) | 23.2 | 25.1 |
Weighted average common shares outstanding - diluted (in shares) | 23.2 | 25.2 |
Net income per common share - basic (in dollars per share) | $ 2.43 | $ 2.08 |
Net income per common share - diluted (in dollars per share) | $ 2.42 | $ 2.07 |
Class A common stock | ||
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||
Net income applicable to common stockholders - basic | $ 54.4 | $ 50 |
Reallocation of net income due to conversion of Class B to Class A common shares outstanding | 0.3 | 0.3 |
Conversion of Class B common shares into Class A common shares | 1.7 | 1.8 |
Net income applicable to common stockholders - diluted | $ 56.4 | $ 52.1 |
Weighted average common shares outstanding - basic (in shares) | 22.3 | 24.1 |
Conversion of Class B common shares into Class A common shares (in shares) | 0.8 | 1 |
Effect of dilutive stock options on weighted average common shares (in shares) | 0.1 | 0.1 |
Weighted average common shares outstanding - diluted (in shares) | 23.2 | 25.2 |
Net income per common share - basic (in dollars per share) | $ 2.43 | $ 2.08 |
Net income per common share - diluted (in dollars per share) | $ 2.42 | $ 2.07 |
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 | $ 2.1 |
Reallocation of net income due to conversion of Class B to Class A common shares outstanding | 0 | 0 |
Conversion of Class B common shares into Class A common shares | 0 | 0 |
Net income applicable to common stockholders - diluted | $ 2 | $ 2.1 |
Weighted average common shares outstanding - basic (in shares) | 0.8 | 1 |
Conversion of Class B common shares into Class A common shares (in shares) | 0 | 0 |
Effect of dilutive stock options on weighted average common shares (in shares) | 0 | 0 |
Weighted average common shares outstanding - diluted (in shares) | 0.8 | 1 |
Net income per common share - basic (in dollars per share) | $ 2.43 | $ 2.08 |
Net income per common share - diluted (in dollars per share) | $ 2.42 | $ 2.07 |
Segments (Narrative) (Details)
Segments (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2019segment | |
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 Millions | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Segment Reporting Information [Line Items] | ||
Total revenues | $ 2,849.7 | $ 2,659.7 |
Income before income taxes | 77.8 | 69.8 |
Depreciation and amortization | (19.8) | (16.8) |
Other interest expense | (15.3) | (11.8) |
Other income, net | 2.6 | 1.3 |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 2,843.2 | 2,657.5 |
Income before income taxes | 57.8 | 55.5 |
Operating segments | Domestic | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 996.7 | 970.6 |
Income before income taxes | 19.8 | 25.6 |
Operating segments | Import | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,191.6 | 1,170.4 |
Income before income taxes | 30 | 23 |
Operating segments | Luxury | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 654.9 | 516.5 |
Income before income taxes | 8 | 6.9 |
Corporate and other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 6.5 | 2.2 |
Income before income taxes | 52.5 | 41.6 |
Segment reconciling items | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | (19.8) | (16.8) |
Other interest expense | (15.3) | (11.8) |
Other income, net | 2.6 | 1.3 |
New vehicle | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 1,461.1 | 1,454.7 |
New vehicle | Operating segments | Domestic | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 492.4 | 513.5 |
New vehicle | Operating segments | Import | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 632.6 | 667.6 |
New vehicle | Operating segments | Luxury | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 339.4 | 278.5 |
Used vehicle retail | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 827.9 | 715.6 |
Used vehicle retail | Operating segments | Domestic | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 300.4 | 264.8 |
Used vehicle retail | Operating segments | Import | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 341.3 | 307.7 |
Used vehicle retail | Operating segments | Luxury | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 186.3 | 142.9 |
Used vehicle wholesale | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 77.4 | 76 |
Used vehicle wholesale | Operating segments | Domestic | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 29.6 | 33.6 |
Used vehicle wholesale | Operating segments | Import | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 27.9 | 28.2 |
Used vehicle wholesale | Operating segments | Luxury | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 19.9 | 14.2 |
Finance and insurance | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 117.5 | 106.5 |
Finance and insurance | Operating segments | Domestic | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 41.8 | 40 |
Finance and insurance | Operating segments | Import | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 54.8 | 51.7 |
Finance and insurance | Operating segments | Luxury | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 16.5 | 12.3 |
Service, body and parts | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 317.4 | 285.7 |
Service, body and parts | Operating segments | Domestic | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 115.4 | 107.2 |
Service, body and parts | Operating segments | Import | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 117.7 | 109.6 |
Service, body and parts | Operating segments | Luxury | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 79.1 | 64.8 |
Fleet and other | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 48.4 | 21.2 |
Fleet and other | Operating segments | Domestic | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 17.1 | 11.5 |
Fleet and other | Operating segments | Import | ||
Segment Reporting Information [Line Items] | ||
Total revenues | 17.3 | 5.6 |
Fleet and other | Operating segments | Luxury | ||
Segment Reporting Information [Line Items] | ||
Total revenues | $ 13.7 | $ 3.8 |
Segments (Reconciliation of Ass
Segments (Reconciliation of Assets from Segment to Consolidated) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Segment Reporting Information [Line Items] | |||
Total Assets | $ 5,692 | $ 5,640.4 | $ 5,384 |
Operating segments | Domestic | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 1,506.3 | 1,488 | |
Operating segments | Import | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 1,317.1 | 1,224.2 | |
Operating segments | Luxury | |||
Segment Reporting Information [Line Items] | |||
Total Assets | 898 | 934.6 | |
Corporate and other | |||
Segment Reporting Information [Line Items] | |||
Total Assets | $ 1,970.6 | $ 1,737.2 |
Leases (Schedule of Lease-Relat
Leases (Schedule of Lease-Related Liabilities Recorded on the Balance Sheet) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
Operating lease liabilities: | |||
Current portion included in accrued liabilities | $ 25.5 | $ 0 | |
Noncurrent operating lease liabilities | 235.2 | $ 241 | 0 |
Total operating lease liabilities | 260.7 | 0 | |
Financing lease liabilities: | |||
Current portion included in Current maturities of long-term debt | 1 | 2 | |
Long-term portion of lease liabilities in other debt | 29.9 | 28.8 | |
Total financing lease liabilities | 30.9 | 30.8 | |
Total lease liabilities | $ 291.6 | $ 30.8 | |
Weighted-average remaining lease term, operating leases | 13 years | ||
Weighted-average remaining lease term, finance leases | 14 years | ||
Weighted-average discount rate, operating leases | 5.07% | ||
Weighted-average discount rate, finance leases | 5.81% |
Leases (Schedule of Lease Costs
Leases (Schedule of Lease Costs) (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating lease cost | $ 12 |
Variable lease cost | 0.8 |
Sublease income | (1) |
Total lease costs | $ 11.8 |
Leases (Schedule of Maturities
Leases (Schedule of Maturities of Operating Lease Liability) (Details) - USD ($) $ in Millions | Mar. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Remainder of 2019 | $ 28.7 | |
2020 | 35.7 | |
2021 | 32.5 | |
2022 | 30 | |
2022 | 25 | |
Thereafter | 216.3 | |
Total minimum lease payments | 368.2 | |
Present value adjustment | (107.5) | |
Total operating lease liabilities | $ 260.7 | $ 0 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | Mar. 31, 2019 |
Minimum | |
Lessor, Lease, Description [Line Items] | |
Lease renewal term | 1 year |
Maximum | |
Lessor, Lease, Description [Line Items] | |
Lease renewal term | 26 years |