Lithia Motors (LAD) 10-Q 28 Oct 16 2016 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2016	Oct. 28, 2016
Common Class B [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		1,762,231
Common Class A [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding (in shares)		25,173,982
Entity Registrant Name	LITHIA MOTORS INC
Entity Central Index Key	1,023,128
Trading Symbol	lad
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Entity Current Reporting Status	Yes
Entity Voluntary Filers	No
Entity Well-known Seasoned Issuer	Yes
Document Type	10-Q
Document Period End Date	Sep. 30, 2016
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q3
Amendment Flag	false

Consolidated Balance Sheets (Cu

Consolidated Balance Sheets (Current Period Unaudited) - USD ($)		Sep. 30, 2016	Dec. 31, 2015
Common Class A [Member]
Stockholders' Equity:
Common stock		$ 167,596,000	$ 258,410,000
Common Class B [Member]
Stockholders' Equity:
Common stock		219,000	316,000
Cash and cash equivalents		24,116,000	45,008,000
Accounts receivable, net of allowance for doubtful accounts of $4,413 and $2,243		317,664,000	308,462,000
Inventories, net		1,657,693,000	1,470,987,000
Other current assets		33,225,000	54,408,000
Total Current Assets		2,032,698,000	1,878,865,000
Property and equipment, net of accumulated depreciation of $157,940 and $137,853		991,721,000	876,660,000
Goodwill	[1]	219,021,000	213,220,000
Franchise value		163,220,000	157,699,000
Other non-current assets		156,946,000	100,855,000
Total Assets		3,563,606,000	3,227,299,000
Floor plan notes payable		73,762,000	48,083,000
Floor plan notes payable: non-trade		1,351,940,000	1,265,872,000
Current maturities of long-term debt		26,674,000	38,891,000
Trade payables		78,442,000	70,871,000
Accrued liabilities		204,361,000	167,108,000
Total Current Liabilities		1,735,179,000	1,590,825,000
Long-term debt, less current maturities		727,191,000	606,463,000
Deferred revenue		77,577,000	66,734,000
Deferred income taxes		58,721,000	53,129,000
Other long-term liabilities		98,848,000	81,984,000
Total Liabilities		2,697,516,000	2,399,135,000
Preferred stock - no par value; authorized 15,000 shares; none outstanding		0	0
Additional paid-in capital		39,359,000	38,822,000
Accumulated other comprehensive loss			(277,000)
Retained earnings		658,916,000	530,893,000
Total Stockholders' Equity		866,090,000	828,164,000
Total Liabilities and Stockholders' Equity		$ 3,563,606,000	$ 3,227,299,000
[1]	Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008.

Consolidated Balance Sheets (C3

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Common Class A [Member]
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	23,405,000	23,676,000
Common stock, shares outstanding (in shares)	23,405,000	23,676,000
Common Class B [Member]
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	25,000,000	25,000,000
Common stock, shares issued (in shares)	1,762,000	2,542,000
Common stock, shares outstanding (in shares)	1,762,000	2,542,000
Allowance for doubtful accounts	$ 4,413	$ 2,243
Accumulated depreciation	$ 157,940	$ 137,853
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

Consolidated Statements of Oper

Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
New Vehicle [Member]
Revenues:
Total revenues	$ 1,297,511	$ 1,227,080	$ 3,602,603	$ 3,384,408
Cost of sales:
Total cost of sales	1,221,668	1,149,923	3,387,132	3,176,135
Used Retail Vehicle [Member]
Revenues:
Total revenues	580,885	505,885	1,667,258	1,457,617
Cost of sales:
Total cost of sales	512,076	443,598	1,466,947	1,273,195
Used Wholesale Vehicle [Member]
Revenues:
Total revenues	75,271	69,472	207,131	198,476
Cost of sales:
Total cost of sales	74,353	68,892	202,897	194,329
Finance and Insurance [Member]
Revenues:
Total revenues	87,709	76,633	246,390	213,700
Service, Body and Parts [Member]
Revenues:
Total revenues	217,148	189,796	616,088	545,966
Cost of sales:
Total cost of sales	112,806	95,846	317,028	276,828
Fleet and Other [Member]
Revenues:
Total revenues	11,443	15,979	46,697	70,803
Cost of sales:
Total cost of sales	11,803	15,399	45,684	68,272
Total revenues	2,269,967	2,084,845	6,386,167	5,870,970
Total cost of sales	1,932,706	1,773,658	5,419,688	4,988,759
Gross profit	337,261	311,187	966,479	882,211
Asset impairments	3,498	4,131	10,494	14,391
Selling, general and administrative	228,134	223,728	662,766	610,956
Depreciation and amortization	12,206	10,531	36,372	30,544
Operating income	93,423	72,797	256,847	226,320
Floor plan interest expense	(6,186)	(4,951)	(18,304)	(14,255)
Other interest expense, net	(5,647)	(4,900)	(16,608)	(14,700)
Other expense, net	(1,513)	(307)	(4,534)	(1,031)
Income before income taxes	80,077	62,639	217,401	196,334
Income tax provision	(26,036)	(19,248)	(71,662)	(61,067)
Net income	$ 54,041	$ 43,391	$ 145,739	$ 135,267
Basic net income per Class A and Class B share (in dollars per share)	$ 2.15	$ 1.65	$ 5.72	$ 5.14
Shares used in basic per share calculations (in shares)	25,194	26,289	25,490	26,304
Diluted net income per Class A and Class B share (in dollars per share)	$ 2.14	$ 1.64	$ 5.69	$ 5.10
Shares used in diluted per share calculations (in shares)	25,290	26,480	25,598	26,500
Cash dividend declared per Class A and Class B share (in dollars per share)	$ 0.25	$ 0.20	$ 0.70	$ 0.56

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Net income	$ 54,041	$ 43,391	$ 145,739	$ 135,267
Other comprehensive income, net of tax:
Gain on cash flow hedges, net of tax expense of $0, $103, $175 and $283, respectively		161	277	465
Comprehensive income	$ 54,041	$ 43,552	$ 146,016	$ 135,732

Consolidated Statements of Com6

Consolidated Statements of Comprehensive Income (Unaudited) (Parentheticals) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Gain on cash flow hedges, tax expense	$ 0	$ 103,000	$ 175,000	$ 283,000

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($)	9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015
Scheduled Payments [Member]
Cash flows from financing activities:
Principal payments on long-term debt, scheduled	$ (12,217,000)	$ (11,048,000)
Other Payments [Member]
Cash flows from financing activities:
Principal payments on long-term debt, scheduled	(5,903,000)	(9,189,000)
Net income	145,739,000	135,267,000
Asset impairments	10,494,000	14,391,000
Depreciation and amortization	36,372,000	30,544,000
Stock-based compensation	8,665,000	8,579,000
(Gain) loss on disposal of other assets	(4,299,000)	27,000
Gain on disposal of franchise	(1,102,000)	(5,919,000)
Deferred income taxes	9,782,000	(7,955,000)
Excess tax benefit from share-based payment arrangements	(4,388,000)	(4,923,000)
Trade receivables, net	(5,911,000)	9,685,000
Inventories	(85,564,000)	(132,407,000)
Other assets	4,627,000	(5,339,000)
Floor plan notes payable	18,122,000	5,604,000
Trade payables	6,153,000	7,768,000
Accrued liabilities	32,874,000	16,949,000
Other long-term liabilities and deferred revenue	18,227,000	34,651,000
Net cash provided by operating activities	189,791,000	106,922,000
Capital expenditures	(81,363,000)	(62,159,000)
Proceeds from sales of assets	1,756,000	229,000
Cash paid for other investments	(22,279,000)	(20,693,000)
Cash paid for acquisitions, net of cash acquired	(199,435,000)	(34,920,000)
Proceeds from sales of stores	11,837,000	12,966,000
Net cash used in investing activities	(289,484,000)	(104,577,000)
Borrowings on floor plan notes payable, net: non-trade	93,817,000	36,204,000
Borrowings on lines of credit	841,623,000	878,340,000
Repayments on lines of credit	(744,494,000)	(939,817,000)
Proceeds from issuance of long-term debt	22,816,000	75,675,000
Proceeds from issuance of common stock	5,191,000	4,313,000
Repurchase of common stock	(108,597,000)	(24,198,000)
Excess tax benefit from share-based payment arrangements	4,388,000	4,923,000
Dividends paid	(17,823,000)	(14,739,000)
Net cash provided by financing activities	78,801,000	464,000
(Decrease) increase in cash and cash equivalents	(20,892,000)	2,809,000
Cash and cash equivalents at beginning of period	45,008,000	29,898,000
Cash and cash equivalents at end of period	24,116,000	32,707,000
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	36,641,000	31,140,000
Cash paid during the period for income taxes, net	29,478,000	50,917,000
Supplemental schedule of non-cash activities:
Debt issued in connection with acquisitions		2,160,000
Non-cash assets transferred in connection with acquisitions	2,637,000
Debt assumed in connection with acquisitions	19,657,000
Acquisition of capital leases in connection with acquisitions	11,366,000
Floor plan debt paid in connection with store disposals	$ 5,284,000	$ 4,400,000

Note 1 - Interim Financial Stat

Note 1 - Interim Financial Statements	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block]	Note 1. Interim Financial Statements Basis of Presentation These condensed Consolidated Financial Statements contain unaudited information as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015. 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 2015 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2015 is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2016. The interim condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our 2015 Annual Report on Form 10-K. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying condensed Consolidated Financial Statements to maintain consistency and comparability between periods presented. These reclassifications had no impact on previously reported net income.

Note 2 - Accounts Receivable

Note 2 - Accounts Receivable	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]	Note 2. Accounts Receivable Accounts receivable consisted of the following (in thousands): September 30, 2016 December 31, 2015 Contracts in transit $ 162,679 $ 168,460 Trade receivables 37,796 33,749 Vehicle receivables 36,634 36,470 Manufacturer receivables 65,549 59,215 Auto loan receivables 64,657 42,490 Other receivables 1,636 3,033 368,951 343,417 Less: Allowance (4,413 ) (2,243 ) Less: Long-term portion of accounts receivable, net (46,874 ) (32,712 ) Total accounts receivable, net $ 317,664 $ 308,462 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.

Note 3 - Inventories

Note 3 - Inventories	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 3. Inventories The components of inventories, net, consisted of the following (in thousands): September 30, 2016 December 31, 2015 New vehicles $ 1,216,699 $ 1,113,613 Used vehicles 378,926 302,911 Parts and accessories 62,068 54,463 Total inventories $ 1,657,693 $ 1,470,987

Note 4 - Goodwill and Franchise

Note 4 - Goodwill and Franchise Value	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Goodwill and Intangible Assets Disclosure [Text Block]	Note 4. 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, 2014 ¹ $ 91,011 $ 79,601 $ 28,763 $ 199,375 Additions through acquisitions 6,892 5,029 2,170 14,091 Reduction related to divestiture — (246 ) — (246 ) Balance as of December 31, 2015 ¹ 97,903 84,384 30,933 213,220 Additions through acquisitions 2 3,447 2,895 677 7,019 Reduction related to divestiture (1,218 ) — — (1,218 ) Balance as of September 30, 2016 ¹ $ 100,132 $ 87,279 $ 31,610 $ 219,021 1 Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008. 2 Our purchase price allocation is preliminary for the acquisitions related to the Carbone Auto Group and Casper Ford and the associated goodwill has not been allocated to each of our segments. See also Note 12. The changes in the carrying amounts of franchise value are as follows (in thousands): Franchise Value Balance as of December 31, 2014 $ 150,892 Additions through acquisitions 6,843 Reduction related to divestiture (36 ) Balance as of December 31, 2015 157,699 Additions through acquisitions 1 6,039 Reduction related to divestiture (518 ) Balance as of September 30, 2016 $ 163,220 1 Our purchase price allocation is preliminary for the acquisitions related to the Carbone Auto Group and Casper Ford and have not been included in the above franchise value additions. See also Note 12.

Note 5 - Stockholders' Equity

Note 5 - Stockholders' Equity	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Stockholders' Equity Note Disclosure [Text Block]	Note 5. Stockholders’ Equity Repurchases of Class A Common Stock Repurchases of our Class A Common Stock occurred under repurchase authorizations granted by our Board of Directors and related to shares withheld as part of the vesting of restricted stock units ("RSUs"). In August 2011, our Board of Directors authorized the repurchase of up to 2 million shares of our Class A common stock and, on July 20, 2012, our Board of Directors authorized the repurchase of 1 million additional shares of our Class A common stock. Effective February 29, 2016, our Board of Directors authorized the repurchase of up to $250 million of our Class A common stock. This authorization replaced the existing authorizations, increasing the total and establishing a maximum dollar rather than share amount. Share repurchases under our authorizations were as follows: Repurchases Occurring in the Nine Months Ended September 30, 2016 Cumulative Repurchases as of September 30, 2016 Shares Average Price Shares Average Price 2011 Share Repurchase Authorization 599,123 $ 79.21 2,327,636 $ 51.09 2016 Share Repurchase Authorization 666,475 $ 78.90 666,475 $ 78.90 As of September 30, 2016, we had $197.4 million available for repurchases pursuant to our 2016 share repurchase authorization. In addition, during the first nine months of 2016, we repurchased 94,725 shares at an average price of $90.46 per share, for a total of $8.6 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. Class B Common Stock Conversion On March 2, 2016, Lithia Holding Company, L.L.C. (“Holding Company”), which is managed and controlled by Sidney B. DeBoer, our Chairman of the Board, notified us that it had converted 780,000 shares of our Class B Common Stock into shares of our Class A Common Stock and distributed them to certain members of Holding Company in redemption of their membership interests in Holding Company. At that time, this transaction decreased the voting power of Holding Company to 42.4% from 52.3%, but did not result in any person acquiring voting control over us. Dividends Dividends paid on our Class A and Class B common stock were as follows: Three Months Ended Nine Months Ended 2016 2015 2016 2015 Dividend amount per share $ 0.25 $ 0.20 $ 0.70 $ 0.56 Total amount of dividend (in thousands) 6,299 5,257 17,823 14,739 See Note 14 for a discussion of a dividend related to our third quarter 2016 financial results.

Note 6 - Deferred Compensation

Note 6 - Deferred Compensation and Long-term Incentive Plan	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Pension and Other Postretirement Benefits Disclosure [Text Block]	Note 6. Deferred Compensation and Long-Term Incentive Plan We offer a deferred compensation and long-term incentive plan (the “LTIP”) to provide certain employees the ability to accumulate assets for retirement on a tax-deferred basis. We may make discretionary contributions to the LTIP. Discretionary contributions vest over a period of time up to seven years depending on the employee’s age and position. Additionally, a participant may defer a portion of his or her compensation and receive the deferred amount upon certain events, including termination or retirement. The following is a summary related to our LTIP (dollars in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Compensation expense $ 355 $ 450 $ 887 $ 1,369 Discretionary contribution $ 393 $ — $ 1,785 $ 2,249 Guaranteed annual return 5.25 % 5.25 % 5.25 % 5.25 % As of September 30, 2016 and December 31, 2015, the balance due, comprised of both amounts participants elected to defer and discretionary contributions, was $21.1 million and $19.7 million, respectively, and was included as a component of accrued liabilities and other long-term liabilities in the Consolidated Balance Sheets. Assets to fund the obligations of the LTIP are held in a Rabbi Trust and must be used only for purposes of providing benefits under the plan, other than in an event of insolvency. The assets held by the Rabbi Trust are invested in corporate-owned life insurance. As of September 30, 2016 and December 31, 2015, the value of the assets held by the Rabbi trust were $21.1 million and $15.4 million, respectively, and are recorded as a component of other non-current assets in the Consolidated Balance Sheets.

Note 7 - Fair Value Measurement

Note 7 - Fair Value Measurements	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Fair Value Disclosures [Text Block]	Note 7. 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. The inputs or methodology used for valuing financial assets and liabilities are not necessarily an indication of the risk associated with investing in them. We estimate the value of our equity-method investment, which is recorded at fair value on a non-recurring basis, based on a market valuation approach. We use prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets. Because these valuations contain unobservable inputs, we classified the measurement of fair value of our equity-method investment as Level 3. We estimate the value of other long-lived assets that are recorded at fair value on a non-recurring basis based 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 nine-month period ended September 30, 2016. Assets and Liabilities Measured at Fair Value Following are the disclosures related to our assets and liabilities that are measured at fair value (in thousands): Fair Value at September 30, 2016 Level 1 Level 2 Level 3 Measured on a non-recurring basis: Equity-method investment $ — $ — $ 5,594 Fair Value at December 31, 2015 Level 1 Level 2 Level 3 Measured on a recurring basis: Derivative contract, net $ — $ 532 $ — Measured on a non-recurring basis: Equity-method investment $ — $ — $ 22,284 Long-lived assets held and used: Certain buildings and improvements $ — $ — $ 6,559 Based on operating losses recognized by the equity-method investment, we determined that an impairment of our investment had occurred. Accordingly, we performed a fair value calculation for this investment and determined that a $10.5 million and a $12.4 million impairment, respectively, was required to be recorded as asset impairments in our Consolidated Statements of Operations for the nine months ended September 30, 2016 and 2015. See Note 9. 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 second quarter of 2015, 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 $2.0 million of impairment charges associated with these properties in the second quarter of 2015. Fair Value Disclosures for Financial Assets and Liabilities We determined the carrying value of cash equivalents, accounts receivable, trade payables, accrued liabilities and short-term borrowings approximate their fair values because of the nature of their terms and current market rates of these instruments. We believe the carrying value of our variable rate debt approximates fair value. We have fixed rate debt and calculate the estimated fair value of our fixed rate debt using a discounted cash flow methodology. Using estimated current interest rates based on a similar risk profile and duration (Level 2), the fixed cash flows are discounted and summed to compute the fair value of the debt. As of September 30, 2016, this debt had maturity dates between May 1, 2018 and December 31, 2050. A summary of the aggregate carrying values and fair values of our long-term fixed interest rate debt is as follows (in thousands): September 30, 2016 December 31, 2015 Carrying value $ 291,845 $ 297,463 Fair value 284,574 296,961

Note 8 - Net Income Per Share o

Note 8 - Net Income Per Share of Class A and Class B Common Stock	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 8. Net Income Per Share of Class A and Class B Common Stock We compute net income per share of Class A and Class B common stock using the two-class method. Under this method, basic net income per share is computed using the weighted average number of common shares outstanding during the period excluding common shares underlying equity awards that are unvested or subject to forfeiture. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the common shares issuable upon the net exercise of stock options and unvested RSUs and is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares. Except with respect to voting and transfer rights, the rights of the holders of our Class A and Class B common stock are identical. Under our Articles of Incorporation, the Class A and Class B common stock share equally in any dividends, liquidation proceeds or other distribution with respect to our common stock and the Articles of Incorporation can only be amended by a vote of the shareholders. Additionally, Oregon law provides that amendments to our Articles of Incorporation that would adversely alter the rights, powers or preferences of a given class of stock, must be approved by the class of stock adversely affected by the proposed amendment. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the year had been distributed. Because the liquidation and dividend rights are identical, the undistributed earnings are allocated on a proportionate basis. Following is a reconciliation of net income and weighted average shares used for our basic earnings per share (“EPS”) and diluted EPS (in thousands, except per share amounts): Three Months Ended September 30, 2016 2015 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 50,262 $ 3,779 $ 39,162 $ 4,229 Reallocation of net income as a result of conversion of dilutive stock options 1 (1 ) 3 (3 ) Reallocation of net income due to conversion of Class B to Class A common shares outstanding 439 — 509 — Conversion of Class B common shares into Class A common shares 3,326 — 3,690 — Effect of dilutive stock options on net income 13 (13 ) 27 (27 ) Net income applicable to common stockholders - diluted $ 54,041 $ 3,765 $ 43,391 $ 4,199 Weighted average common shares outstanding – basic 23,432 1,762 23,727 2,562 Conversion of Class B common shares into Class A common shares 1,762 — 2,562 — Effect of dilutive stock options on weighted average common shares 96 — 191 — Weighted average common shares outstanding – diluted 25,290 1,762 26,480 2,562 Net income per common share - basic $ 2.14 $ 2.14 $ 1.65 $ 1.65 Net income per common share - diluted $ 2.14 $ 2.14 $ 1.64 $ 1.64 Three Months Ended September 30, 2016 2015 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive — — 18 — Nine Months Ended September 30, 2016 2015 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 134,533 $ 11,206 $ 122,092 $ 13,175 Reallocation of net income as a result of conversion of dilutive stock options 5 (5 ) 11 (11 ) Reallocation of net income due to conversion of Class B to Class A common shares outstanding 1,365 — 1,425 — Conversion of Class B common shares into Class A common shares 9,794 — 11,653 — Effect of dilutive stock options on net income 42 (42 ) 86 (86 ) Net income applicable to common stockholders - diluted $ 145,739 $ 11,159 $ 135,267 $ 13,078 Weighted average common shares outstanding – basic 23,530 1,960 23,742 2,562 Conversion of Class B common shares into Class A common shares 1,960 — 2,562 — Effect of dilutive stock options on weighted average common shares 108 — 196 — Weighted average common shares outstanding – diluted 25,598 1,960 26,500 2,562 Net income per common share - basic $ 5.72 $ 5.72 $ 5.14 $ 5.14 Net income per common share - diluted $ 5.69 $ 5.69 $ 5.10 $ 5.10 Nine Months Ended September 30, 2016 2015 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive — — 17 —

Note 9 - Equity-Method Investme

Note 9 - Equity-Method Investment	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Equity Method Investments and Joint Ventures Disclosure [Text Block]	Note 9. Equity-Method Investment In October 2014, we acquired a 99.9% membership interest in a limited liability company managed by U.S. Bancorp Community Development Corporation with an initial equity contribution of $4.1 million. We made additional equity contributions to the entity of $17.1 million in the first nine months of 2016 and $22.8 million in the full year of 2015. We are obligated to make $49.8 million of total contributions in quarterly installments to the entity over a two-year period ending October 2016, of which $44.0 million in contributions have been made as of September 30, 2016. This investment generates new markets tax credits under the New Markets Tax Credit Program (“NMTC Program”). The NMTC Program was established by Congress in 2000 to spur new or increased investments into operating businesses and real estate projects located in low-income communities. While U.S. Bancorp Community Development Corporation exercises management control over the limited liability company, due to the economic interest we hold in the entity, we determined our ownership portion of the entity was appropriately accounted for using the equity method. The following amounts related to this equity-method investment were recorded in our Consolidated Balance Sheets (in thousands): September 30, 2016 December 31, Carrying value, recorded as a component of other non-current assets $ 5,594 $ 22,284 Present value of obligation associated with future equity contributions, recorded as a component of accrued liabilities 5,674 22,511 The following amounts related to this equity-method investment were recorded in our Consolidated Statements of Operations (in thousands): Three Months Ended September 30, Nine Months Ended 2016 2015 2016 2015 Asset impairments to write investment down to fair value $ 3,498 $ 4,131 $ 10,494 $ 12,391 Our portion of the partnership’s operating losses 2,066 1,731 6,197 5,196 Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions 31 155 185 549 Tax benefits and credits generated 7,592 7,414 20,374 22,316

Note 10 - Segments

Note 10 - Segments	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Segment Reporting Disclosure [Text Block]	Note 10. Segments While we have determined that each individual store is a reporting unit, we have aggregated our reporting units into three reportable segments based on their economic similarities: Domestic, Import and Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors and Ford. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Honda, Toyota, Subaru, Nissan and Volkswagen. Our Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by BMW, Mercedes-Benz and Lexus. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products. Corporate and other revenue and income includes the results of operations of our stand-alone body shop offset by unallocated corporate overhead expenses, such as corporate personnel costs, and certain unallocated reserve and elimination adjustments. Additionally, certain internal corporate expense allocations increase segment income for Corporate and other while decreasing segment income for the other reportable segments. These internal corporate expense allocations are used to increase comparability of our dealerships and reflect the capital burden a stand-alone dealership would experience. Examples of these internal allocations include internal rent expense, internal floor plan financing charges, and internal fees charged to offset employees within our corporate headquarters that perform certain dealership functions. We define our chief operating decision maker (“CODM”) to be certain members of our executive management group. Historical and forecasted operational performance is evaluated on a store-by-store basis and on a consolidated basis by the CODM. We derive the operating results of the segments directly from our internal management reporting system. The accounting policies used to derive segment results are substantially the same as those used to determine our consolidated results, except for the internal allocation within Corporate and other discussed above. Our CODM measures the performance of each operating segment based on several metrics, including earnings from operations, and uses these results, in part, to evaluate the performance of, and to allocate resources to, each of the operating segments. Certain financial information on a segment basis is as follows (in thousands): Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenues: Domestic $ 888,026 $ 814,216 $ 2,483,637 $ 2,273,068 Import 989,077 894,371 2,788,838 2,509,756 Luxury 392,537 374,558 1,111,215 1,084,051 2,269,640 2,083,145 6,383,690 5,866,875 Corporate and other 327 1,700 2,477 4,095 $ 2,269,967 $ 2,084,845 $ 6,386,167 $ 5,870,970 Segment income*: Domestic $ 32,394 $ 33,240 $ 84,913 $ 91,853 Import 32,832 31,453 86,385 76,665 Luxury 7,423 8,318 21,736 25,764 72,649 73,011 193,034 194,282 Corporate and other 26,794 5,366 81,881 48,327 Depreciation and amortization (12,206 ) (10,531 ) (36,372 ) (30,544 ) Other interest expense (5,647 ) (4,900 ) (16,608 ) (14,700 ) Other expense, net (1,513 ) (307 ) (4,534 ) (1,031 ) Income before income taxes $ 80,077 $ 62,639 $ 217,401 $ 196,334 *Segment income for each of the segments is defined as income before income taxes, depreciation and amortization, other interest expense and other expense, net. Three Months Ended Nine Months Ended 2016 2015 2016 2015 Floor plan interest expense: Domestic $ 6,255 $ 5,441 $ 18,869 $ 15,083 Import 4,661 3,779 13,403 11,227 Luxury 2,720 2,345 8,027 6,715 13,636 11,565 40,299 33,025 Corporate and other (7,450 ) (6,614 ) (21,995 ) (18,770 ) $ 6,186 $ 4,951 $ 18,304 $ 14,255 September 30, 2016 December 31, 2015 Total assets: Domestic $ 1,086,624 $ 985,374 Import 877,961 725,011 Luxury 445,246 475,305 Corporate and other 1,153,775 1,041,609 $ 3,563,606 $ 3,227,299

Note 11 - Contingencies

Note 11 - Contingencies	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Commitments and Contingencies Disclosure [Text Block]	Note 11. Contingencies Litigation We are party to numerous legal proceedings arising in the normal course of our business. Although we do not anticipate that the resolution of legal proceedings arising in the normal course of business or the proceedings described below will have a material adverse effect on our business, results of operations, financial condition, or cash flows, we cannot predict this with certainty. In Re Lithia Motors Derivative Litigation On December 14, 2015, Shiva Y. Stein, a Lithia shareholder, filed derivative claims on behalf of Lithia against its Board of Directors, listing Lithia as a nominal defendant. The case, Stein v. DeBoer, et al., Case No. 15CV33696, is pending in the Circuit Court of the State of Oregon for Marion County. Ms. Stein’s claims relate to the adoption of a transition agreement between Lithia and Sidney B. DeBoer, as disclosed in a Current Report on Form 8-K filed September 16, 2015. Ms. Stein alleges that Lithia's directors breached their fiduciary duties of loyalty and due care, and wasted corporate assets, when they approved the agreement with Mr. DeBoer. Ms. Stein also alleges a claim against Sidney B. DeBoer, asserting that he has been unjustly enriched by the agreement. Ms. Stein is seeking relief in the amount of damages allegedly sustained by Lithia as a result of the alleged breaches of fiduciary duty and alleged corporate waste, disgorgement and imposition of a constructive trust on all property and profits Sidney B. DeBoer received as a result of the alleged wrongful conduct, and an award of the costs and disbursements of the lawsuit, including reasonable attorney fees, costs, and expenses. The Board and Mr. DeBoer filed Motions to Dismiss the Stein suit on February 26, 2016. On February 12, 2016, Marty A. Jessos, a Lithia shareholder, also filed derivative claims on behalf of Lithia against its Board of Directors, listing Lithia as a nominal defendant. The case, Jessos v. DeBoer, et al., Case No. 16CV04181, was filed in the Circuit Court of the State of Oregon for Multnomah County. The Jessos suit involves the same subject matter and alleges substantially the same facts, claims, and causes of action as the Stein suit. On March 22, 2016, the Jessos suit was transferred to Marion County Circuit Court. On April 4, 2016, the parties filed a Stipulation and [Proposed] Order of Consolidation in the Stein suit to consolidate both Stein and Jessos under the Stein suit, Case No. 15CV33696. On April 4, 2016, the Court signed the consolidation order. The case is now known as In re Lithia Motors Derivative Litigation, Case No. 15CV33696. Plaintiffs filed their consolidated complaint on April 15, 2016. The Board and Mr. DeBoer filed Motions to Dismiss the consolidated complaint on May 10, 2016. The Court issued its ruling on the Motions on August 12, 2016. The Court determined that a majority of the Board was independent, but also that Plaintiffs alleged sufficient facts to withstand the Motions to Dismiss. For that reason, the Court denied the Board's and Mr. DeBoer's Motions. The Board and Mr. DeBoer filed their Answers to the consolidated complaint on October 10, 2016. The parties are now engaged in discovery. California Wage and Hour Litigations In June 2012, Mr. Robles and Mr. Laredo brought claims against DCH Tustin Acura (Robles vs. Tustin Motors, Inc., Case No. 30-2012-00579414, filed in the Superior Court of California, Orange County) alleging that the employer underpaid technicians in light of California Wage Order provisions that require an employer to pay at least two times the minimum wage for each hour worked if the employee is required to bring his or her own tools. The complaint was amended in late 2013 to include allegations that the employer failed to pay technicians for non-productive time and/or time spent performing tasks not compensated by the flat-rate compensation system; off-the-clock time worked; and wages due at termination. The amended complaint also alleged that the employer failed to provide technicians accurate and complete wage statements; and statutory meal and rest periods. Plaintiffs are now seeking relief on behalf of all employees at all DCH Auto Group dealerships in California. Plaintiffs also seek attorney fees and costs. These Plaintiffs (and several other former technicians in separate-but-partially-overlapping actions) also seek relief under California’s Private Attorney General Action (PAGA) provisions, which allow private plaintiffs to recover civil penalties on behalf of the State of California. DCH successfully compelled arbitration based on arbitration agreements between these claimants and the employer, although certain representative claims were excluded and stayed pending arbitration. DCH and these claimants settled their individual claims in arbitration in 2015. In April 2016, DCH and plaintiffs agreed in principle to settle the representative claims, although this settlement has not yet been approved by either an independent arbitrator or the California courts as expressly contemplated by the parties and required by applicable law as a condition of the agreed release of claims. DCH Auto Group (USA) Limited must indemnify Lithia Motors, Inc. for losses related to this claim pursuant to the stock purchase agreement between Lithia Motors, Inc. and DCH Auto Group (USA) Limited dated June 14, 2014. As a result, we believe the exposure related to this lawsuit, when considered in relation to the terms of the stock purchase agreement, is immaterial to our financial statements. In August 2014, Ms. Holzer filed a complaint in the Central District of California (Holzer vs. DCH Auto Group (USA) Inc., Case No. BC558869) alleging that her employer, an affiliate of DCH Auto Group (USA) Inc., failed to provide vehicle finance and sales persons, service advisors, and other clerical and hourly workers accurate and complete wage statements; and statutory meal and rest periods. The complaint also alleges that the employer failed to pay these employees for off-the-clock time worked; and wages due at termination. Plaintiffs also seek attorney fees and costs. DCH has sought to compel arbitration based on Plaintiffs’ arbitration agreements. Plaintiffs (and several other employees in separate actions) are seeking relief under California’s PAGA provisions. DCH is defending itself against these claims, and DCH Auto Group (USA) Limited must indemnify Lithia Motors, Inc. for losses related to this claim pursuant to the stock purchase agreement between Lithia Motors, Inc. and DCH Auto Group (USA) Limited dated June 14, 2014. As a result, we believe the exposure related to this lawsuit, when considered in relation to the terms of the stock purchase agreement, is immaterial to our financial statements.

Note 12 - Acquisitions

Note 12 - Acquisitions	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Business Combination Disclosure [Text Block]	Note 12. Acquisitions In the first nine months of 2016, we completed the following acquisitions: • On January 26, 2016, we acquired Singh Subaru in Riverside, California. • On February 1, 2016, we acquired Ira Toyota Milford in Milford, Massachusetts. • On June 23, 2016, we acquired Helena Auto Center, LLC in Helena, Montana. • On August 1, 2016, we acquired Kemp Ford in Thousand Oaks, California. • On September 12, 2016, we acquired the Carbone Auto Group, a nine store platform based in New York and Vermont. • On September 28, 2016, we acquired Greiner Ford Lincoln in Casper, Wyoming. Revenue and operating income contributed by 2016 acquisitions subsequent to the date of acquisition were as follows (in thousands): Revenue $ 82,730 Operating income 993 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. No portion of the purchase price was paid with our equity securities. The following table summarizes the consideration paid for the 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 $ 199,435 Assets transferred 2,637 $ 202,072 The purchase price allocations for the Carbone Auto Group and Greiner Ford Lincoln 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. Management has 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. Management expects to finalize its purchase price allocations in the fourth quarter of 2016. Assets Acquired and Liabilities Assumed Inventories $ 112,406 Franchise value 6,039 Property and equipment 73,029 Other current assets 305 Other non-current assets 49,752 Floor plan notes payable (7,558 ) Debt and capital lease obligations (23,465 ) Other current liabilities (5,850 ) Other non-current liabilities (9,605 ) 195,053 Goodwill 7,019 $ 202,072 We account for franchise value as an indefinite-lived intangible asset. We expect the full amount of the goodwill recognized to be deductible for tax purposes. The following unaudited pro forma summary presents consolidated information as if all acquisitions in the nine-month periods ended September 30, 2016 and 2015 had occurred on January 1, 2015 (in thousands, except for per share amounts): Three Months Ended September 30, 2016 2015 Revenue $ 2,412,788 $ 2,320,323 Net income 55,296 44,490 Basic net income per share 2.19 1.69 Diluted net income per share 2.19 1.68 Nine Months Ended September 30, 2016 2016 2015 Revenue $ 6,865,409 $ 6,547,658 Net income 150,258 138,868 Basic net income per share 5.89 5.28 Diluted net income per share 5.87 5.24 These amounts have been calculated by applying our accounting policies and estimates. The results of the acquired stores have been adjusted to reflect the following: depreciation on a straight-line basis over the expected lives for property and equipment; accounting for inventory on a specific identification method; and recognition of interest expense for real estate financing related to stores where we purchased the facility. No nonrecurring pro forma adjustments directly attributable to the acquisitions are included in the reported pro forma revenues and earnings.

Note 13 - Recent Accounting Pro

Note 13 - Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Description of New Accounting Pronouncements Not yet Adopted [Text Block]	Note 13. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board ("FASB") issued accounting standards update ("ASU") 2014-09, "Revenue from Contracts with Customers," which amends the accounting guidance related to revenues. This amendment will replace most of the existing revenue recognition guidance when it becomes effective. The new standard, as amended in July 2015, is effective for fiscal years beginning after December 15, 2017 and entities are allowed to adopt the standard as early as annual periods beginning after December 15, 2016, and interim periods therein. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this amendment will have on our consolidated financial statements and related disclosures and believe the financial impact is not material. We have not yet selected a transition method. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory (Topic 330)." ASU 2015-11 simplifies the accounting for the valuation of all inventory not accounted for using the last-in, first-out method by prescribing inventory be valued at the lower of cost or net realizable value. ASU 2015-11 is effective for public companies' annual periods, including interim periods within those fiscal years, beginning after December 15, 2016 on a prospective basis. Early adoption is permitted. We do not expect the adoption of ASU 2015-11 to have a material effect on our financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosing key information about leasing arrangements. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are evaluating the effect this pronouncement will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 simplifies the accounting for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We are evaluating the effect this pronouncement will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance for eight cash flow classification issues to reduce diversity in practice. The clarification includes guidance on items such as debt prepayment or debt extinguishment cost, contingent consideration payment made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. We are evaluating the effect this pronouncement will have on our consolidated financial statements and related disclosures.

Note 14 - Subsequent Events

Note 14 - Subsequent Events	9 Months Ended
	Sep. 30, 2016
Notes to Financial Statements
Subsequent Events [Text Block]	Note 14. Subsequent Events Common Stock Dividend On October 18, 2016, our Board of Directors approved a dividend of $0.25 per share on our Class A and Class B common stock related to our third quarter 2016 financial results. The dividend will total approximately $6.3 million and will be paid on November 25, 2016 to shareholders of record on November 11, 2016. Acquisition On October 5, 2016, we acquired the inventory, equipment and intangible assets of Audi Auto Gallery in Woodland Hills, California. The store will be relocated to Calabasas, California. We paid $22.4 million in cash for this acquisition.

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2016
Accounting Policies [Abstract]
Basis of Accounting, Policy [Policy Text Block]	Basis of Presentation These condensed Consolidated Financial Statements contain unaudited information as of September 30, 2016 and for the three and nine months ended September 30, 2016 and 2015. 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 2015 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2015 is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 26, 2016. The interim condensed Consolidated Financial Statements should be read in conjunction with the Consolidated Financial Statements and the notes thereto included in our 2015 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.
Reclassification, Policy [Policy Text Block]	Reclassifications Certain reclassifications of amounts previously reported have been made to the accompanying condensed Consolidated Financial Statements to maintain consistency and comparability between periods presented. These reclassifications had no impact on previously reported net income.
New Accounting Pronouncements, Policy [Policy Text Block]	In May 2014, the Financial Accounting Standards Board ("FASB") issued accounting standards update ("ASU") 2014-09, "Revenue from Contracts with Customers," which amends the accounting guidance related to revenues. This amendment will replace most of the existing revenue recognition guidance when it becomes effective. The new standard, as amended in July 2015, is effective for fiscal years beginning after December 15, 2017 and entities are allowed to adopt the standard as early as annual periods beginning after December 15, 2016, and interim periods therein. The standard permits the use of either the retrospective or cumulative effect transition method. We are evaluating the effect this amendment will have on our consolidated financial statements and related disclosures and believe the financial impact is not material. We have not yet selected a transition method. In July 2015, the FASB issued ASU 2015-11, "Simplifying the Measurement of Inventory (Topic 330)." ASU 2015-11 simplifies the accounting for the valuation of all inventory not accounted for using the last-in, first-out method by prescribing inventory be valued at the lower of cost or net realizable value. ASU 2015-11 is effective for public companies' annual periods, including interim periods within those fiscal years, beginning after December 15, 2016 on a prospective basis. Early adoption is permitted. We do not expect the adoption of ASU 2015-11 to have a material effect on our financial position, results of operations or cash flows. In February 2016, the FASB issued ASU 2016-02, "Leases." ASU 2016-02 increases transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and requires disclosing key information about leasing arrangements. ASU 2016-02 is effective for annual periods beginning after December 15, 2018, and interim periods within those annual periods. We are evaluating the effect this pronouncement will have on our consolidated financial statements and related disclosures. In March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation - Improvements to Employee Share-Based Payment Accounting." ASU 2016-09 simplifies the accounting for several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities and classification on the statement of cash flows. ASU 2016-09 is effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods. We are evaluating the effect this pronouncement will have on our consolidated financial statements and related disclosures. We have not yet selected a transition method. In August 2016, the FASB issued ASU 2016-15, "Classification of Certain Cash Receipts and Cash Payments." ASU 2016-15 provides guidance for eight cash flow classification issues to reduce diversity in practice. The clarification includes guidance on items such as debt prepayment or debt extinguishment cost, contingent consideration payment made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies and distributions received from equity method investees. ASU 2016-15 is effective for annual periods beginning after December 15, 2017, and interim periods within those annual periods. Early adoption is permitted. We are evaluating the effect this pronouncement will have on our consolidated financial statements and related disclosures.

Note 2 - Accounts Receivable (T

Note 2 - Accounts Receivable (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]	September 30, 2016 December 31, 2015 Contracts in transit $ 162,679 $ 168,460 Trade receivables 37,796 33,749 Vehicle receivables 36,634 36,470 Manufacturer receivables 65,549 59,215 Auto loan receivables 64,657 42,490 Other receivables 1,636 3,033 368,951 343,417 Less: Allowance (4,413 ) (2,243 ) Less: Long-term portion of accounts receivable, net (46,874 ) (32,712 ) Total accounts receivable, net $ 317,664 $ 308,462

Note 3 - Inventories (Tables)

Note 3 - Inventories (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30, 2016 December 31, 2015 New vehicles $ 1,216,699 $ 1,113,613 Used vehicles 378,926 302,911 Parts and accessories 62,068 54,463 Total inventories $ 1,657,693 $ 1,470,987

Note 4 - Goodwill and Franchi25

Note 4 - Goodwill and Franchise Value (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Goodwill [Table Text Block]	Domestic Import Luxury Consolidated Balance as of December 31, 2014 ¹ $ 91,011 $ 79,601 $ 28,763 $ 199,375 Additions through acquisitions 6,892 5,029 2,170 14,091 Reduction related to divestiture — (246 ) — (246 ) Balance as of December 31, 2015 ¹ 97,903 84,384 30,933 213,220 Additions through acquisitions 2 3,447 2,895 677 7,019 Reduction related to divestiture (1,218 ) — — (1,218 ) Balance as of September 30, 2016 ¹ $ 100,132 $ 87,279 $ 31,610 $ 219,021
Schedule of Indefinite-Lived Intangible Assets [Table Text Block]	Franchise Value Balance as of December 31, 2014 $ 150,892 Additions through acquisitions 6,843 Reduction related to divestiture (36 ) Balance as of December 31, 2015 157,699 Additions through acquisitions 1 6,039 Reduction related to divestiture (518 ) Balance as of September 30, 2016 $ 163,220

Note 5 - Stockholders' Equity (

Note 5 - Stockholders' Equity (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Class of Treasury Stock [Table Text Block]	Repurchases Occurring in the Nine Months Ended September 30, 2016 Cumulative Repurchases as of September 30, 2016 Shares Average Price Shares Average Price 2011 Share Repurchase Authorization 599,123 $ 79.21 2,327,636 $ 51.09 2016 Share Repurchase Authorization 666,475 $ 78.90 666,475 $ 78.90
Dividends Declared [Table Text Block]	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Dividend amount per share $ 0.25 $ 0.20 $ 0.70 $ 0.56 Total amount of dividend (in thousands) 6,299 5,257 17,823 14,739

Note 6 - Deferred Compensatio27

Note 6 - Deferred Compensation and Long-term Incentive Plan (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits by Title of Individual and Type of Deferred Compensation [Table Text Block]	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Compensation expense $ 355 $ 450 $ 887 $ 1,369 Discretionary contribution $ 393 $ — $ 1,785 $ 2,249 Guaranteed annual return 5.25 % 5.25 % 5.25 % 5.25 %

Note 7 - Fair Value Measureme28

Note 7 - Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block]	Fair Value at September 30, 2016 Level 1 Level 2 Level 3 Measured on a non-recurring basis: Equity-method investment $ — $ — $ 5,594 Fair Value at December 31, 2015 Level 1 Level 2 Level 3 Measured on a recurring basis: Derivative contract, net $ — $ 532 $ — Measured on a non-recurring basis: Equity-method investment $ — $ — $ 22,284 Long-lived assets held and used: Certain buildings and improvements $ — $ — $ 6,559
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block]	September 30, 2016 December 31, 2015 Carrying value $ 291,845 $ 297,463 Fair value 284,574 296,961

Note 8 - Net Income Per Share29

Note 8 - Net Income Per Share of Class A and Class B Common Stock (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]	Three Months Ended September 30, 2016 2015 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 50,262 $ 3,779 $ 39,162 $ 4,229 Reallocation of net income as a result of conversion of dilutive stock options 1 (1 ) 3 (3 ) Reallocation of net income due to conversion of Class B to Class A common shares outstanding 439 — 509 — Conversion of Class B common shares into Class A common shares 3,326 — 3,690 — Effect of dilutive stock options on net income 13 (13 ) 27 (27 ) Net income applicable to common stockholders - diluted $ 54,041 $ 3,765 $ 43,391 $ 4,199 Weighted average common shares outstanding – basic 23,432 1,762 23,727 2,562 Conversion of Class B common shares into Class A common shares 1,762 — 2,562 — Effect of dilutive stock options on weighted average common shares 96 — 191 — Weighted average common shares outstanding – diluted 25,290 1,762 26,480 2,562 Net income per common share - basic $ 2.14 $ 2.14 $ 1.65 $ 1.65 Net income per common share - diluted $ 2.14 $ 2.14 $ 1.64 $ 1.64 Three Months Ended September 30, 2016 2015 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive — — 18 — Nine Months Ended September 30, 2016 2015 (in thousands, except per share data) Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 134,533 $ 11,206 $ 122,092 $ 13,175 Reallocation of net income as a result of conversion of dilutive stock options 5 (5 ) 11 (11 ) Reallocation of net income due to conversion of Class B to Class A common shares outstanding 1,365 — 1,425 — Conversion of Class B common shares into Class A common shares 9,794 — 11,653 — Effect of dilutive stock options on net income 42 (42 ) 86 (86 ) Net income applicable to common stockholders - diluted $ 145,739 $ 11,159 $ 135,267 $ 13,078 Weighted average common shares outstanding – basic 23,530 1,960 23,742 2,562 Conversion of Class B common shares into Class A common shares 1,960 — 2,562 — Effect of dilutive stock options on weighted average common shares 108 — 196 — Weighted average common shares outstanding – diluted 25,598 1,960 26,500 2,562 Net income per common share - basic $ 5.72 $ 5.72 $ 5.14 $ 5.14 Net income per common share - diluted $ 5.69 $ 5.69 $ 5.10 $ 5.10 Nine Months Ended September 30, 2016 2015 Diluted EPS Class A Class B Class A Class B Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive — — 17 —

Note 9 - Equity-Method Invest30

Note 9 - Equity-Method Investment (Tables)	9 Months Ended
	Sep. 30, 2016
Consolidated Statement of Operations [Member]
Notes Tables
Equity Method Investments [Table Text Block]	Three Months Ended September 30, Nine Months Ended 2016 2015 2016 2015 Asset impairments to write investment down to fair value $ 3,498 $ 4,131 $ 10,494 $ 12,391 Our portion of the partnership’s operating losses 2,066 1,731 6,197 5,196 Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions 31 155 185 549 Tax benefits and credits generated 7,592 7,414 20,374 22,316
Consolidated Balance Sheet [Member]
Notes Tables
Equity Method Investments [Table Text Block]	September 30, 2016 December 31, Carrying value, recorded as a component of other non-current assets $ 5,594 $ 22,284 Present value of obligation associated with future equity contributions, recorded as a component of accrued liabilities 5,674 22,511

Note 10 - Segments (Tables)

Note 10 - Segments (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Schedule of Segment Reporting Information, by Segment [Table Text Block]	Three Months Ended Nine Months Ended 2016 2015 2016 2015 Revenues: Domestic $ 888,026 $ 814,216 $ 2,483,637 $ 2,273,068 Import 989,077 894,371 2,788,838 2,509,756 Luxury 392,537 374,558 1,111,215 1,084,051 2,269,640 2,083,145 6,383,690 5,866,875 Corporate and other 327 1,700 2,477 4,095 $ 2,269,967 $ 2,084,845 $ 6,386,167 $ 5,870,970 Segment income*: Domestic $ 32,394 $ 33,240 $ 84,913 $ 91,853 Import 32,832 31,453 86,385 76,665 Luxury 7,423 8,318 21,736 25,764 72,649 73,011 193,034 194,282 Corporate and other 26,794 5,366 81,881 48,327 Depreciation and amortization (12,206 ) (10,531 ) (36,372 ) (30,544 ) Other interest expense (5,647 ) (4,900 ) (16,608 ) (14,700 ) Other expense, net (1,513 ) (307 ) (4,534 ) (1,031 ) Income before income taxes $ 80,077 $ 62,639 $ 217,401 $ 196,334 Three Months Ended Nine Months Ended 2016 2015 2016 2015 Floor plan interest expense: Domestic $ 6,255 $ 5,441 $ 18,869 $ 15,083 Import 4,661 3,779 13,403 11,227 Luxury 2,720 2,345 8,027 6,715 13,636 11,565 40,299 33,025 Corporate and other (7,450 ) (6,614 ) (21,995 ) (18,770 ) $ 6,186 $ 4,951 $ 18,304 $ 14,255
Reconciliation of Assets from Segment to Consolidated [Table Text Block]	September 30, 2016 December 31, 2015 Total assets: Domestic $ 1,086,624 $ 985,374 Import 877,961 725,011 Luxury 445,246 475,305 Corporate and other 1,153,775 1,041,609 $ 3,563,606 $ 3,227,299

Note 12 - Acquisitions (Tables)

Note 12 - Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2016
Notes Tables
Operating Results from Acquisitions [Table Text Block]	Revenue $ 82,730 Operating income 993
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block]	Consideration Cash paid, net of cash acquired $ 199,435 Assets transferred 2,637 $ 202,072 Assets Acquired and Liabilities Assumed Inventories $ 112,406 Franchise value 6,039 Property and equipment 73,029 Other current assets 305 Other non-current assets 49,752 Floor plan notes payable (7,558 ) Debt and capital lease obligations (23,465 ) Other current liabilities (5,850 ) Other non-current liabilities (9,605 ) 195,053 Goodwill 7,019 $ 202,072
Business Acquisition, Pro Forma Information [Table Text Block]	Three Months Ended September 30, 2016 2015 Revenue $ 2,412,788 $ 2,320,323 Net income 55,296 44,490 Basic net income per share 2.19 1.69 Diluted net income per share 2.19 1.68 Nine Months Ended September 30, 2016 2016 2015 Revenue $ 6,865,409 $ 6,547,658 Net income 150,258 138,868 Basic net income per share 5.89 5.28 Diluted net income per share 5.87 5.24

Note 2 - Accounts Receivable -

Note 2 - Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Contracts in Transit [Member]
Accounts receivable gross	$ 162,679	$ 168,460
Trade Accounts Receivable [Member]
Accounts receivable gross	37,796	33,749
Vehicle Receivables [Member]
Accounts receivable gross	36,634	36,470
Manufacturer Receivables [Member]
Accounts receivable gross	65,549	59,215
Auto Loans Receivables [Member]
Accounts receivable gross	64,657	42,490
Other Receivables [Member]
Accounts receivable gross	1,636	3,033
Accounts receivable gross	368,951	343,417
Less: Allowance	(4,413)	(2,243)
Less: Long-term portion of accounts receivable, net	(46,874)	(32,712)
Total accounts receivable, net	$ 317,664	$ 308,462

Note 3 - Inventories - Summary

Note 3 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
New Vehicle [Member]
Inventories, net	$ 1,216,699	$ 1,113,613
Used Vehicle [Member]
Inventories, net	378,926	302,911
Parts and Accessories [Member]
Inventories, net	62,068	54,463
Inventories, net	$ 1,657,693	$ 1,470,987

Note 4 - Goodwill and Franchi35

Note 4 - Goodwill and Franchise Value (Details Textual) $ in Millions	Dec. 31, 2008USD ($)
Goodwill, Impaired, Accumulated Impairment Loss	$ 299.3

Note 4 - Goodwill and Franchi36

Note 4 - Goodwill and Franchise Value - Goodwill (Details) - USD ($) $ in Thousands		9 Months Ended		12 Months Ended
		Sep. 30, 2016		Dec. 31, 2015
Domestic [Member]
Balance	[1]	$ 97,903		$ 91,011
Additions through acquisitions		3,447	[2]	6,892
Reduction related to divestiture		(1,218)
Balance	[1]	100,132		97,903
Import [Member]
Balance	[1]	84,384		79,601
Additions through acquisitions		2,895	[2]	5,029
Reduction related to divestiture				(246)
Balance	[1]	87,279		84,384
Luxury [Member]
Balance	[1]	30,933		28,763
Additions through acquisitions		677	[2]	2,170
Reduction related to divestiture
Balance	[1]	31,610		30,933
Balance	[1]	213,220		199,375
Additions through acquisitions		7,019	[2]	14,091
Reduction related to divestiture		(1,218)		(246)
Balance	[1]	$ 219,021		$ 213,220
[1]	Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008.
[2]	Our purchase price allocation is preliminary for the acquisitions related to the Carbone Auto Group and Casper Ford and the associated goodwill has not been allocated to each of our segments. See also Note 12.

Note 4 - Goodwil and Franchise

Note 4 - Goodwil and Franchise Value - Franchise Value (Details) - USD ($) $ in Thousands	9 Months Ended		12 Months Ended
	Sep. 30, 2016		Dec. 31, 2015
Balance	$ 157,699		$ 150,892
Additions through acquisitions	6,039	[1]	6,843
Reduction related to divestiture	(518)		(36)
Balance	$ 163,220		$ 157,699
[1]	Our purchase price allocation is preliminary for the acquisitions related to the Carbone Auto Group and Casper Ford and have not been included in the above franchise value additions. See also Note 12.

Note 5 - Stockholders' Equity38

Note 5 - Stockholders' Equity (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Mar. 02, 2016	Sep. 30, 2016	Mar. 01, 2016	Feb. 29, 2016	Jul. 20, 2012	Aug. 31, 2011
Common Class A [Member] | The 2011 Stock Repurchase Authorization [Member] | Additional Shares Authorized [Member]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased					1,000,000
Common Class A [Member] | The 2011 Stock Repurchase Authorization [Member]
Stock Repurchase Program, Number of Shares Authorized to be Repurchased						2,000,000
Common Class A [Member] | The 2016 Stock Repurchase Authorization [Member]
Stock Repurchase Program, Authorized Amount		$ 197.4		$ 250
Common Class A [Member] | Restricted Stock Units (RSUs) [Member]
Shares Paid for Tax Withholding for Share Based Compensation		94,725
Treasury Stock Acquired, Average Cost Per Share		$ 90.46
Adjustments Related to Tax Withholding for Share-based Compensation		$ 8.6
Conversion from Class B Common Stock to Class A Common Stock [Member] | Board of Directors Chairman [Member]
Conversion of Stock, Shares Converted	780,000
Voting Power Percentage from Conversion of Stock	42.40%		52.30%

Note 5 - Stockholders' Equity -

Note 5 - Stockholders' Equity - Share Repurchases Under Authorizations (Details) - $ / shares	9 Months Ended	68 Months Ended
	Sep. 30, 2016	Sep. 30, 2016
2011 Share Repurchase Authorization [Member]
Shares repurchases under authorizations (in shares)	599,123	2,327,636
Average price of share repurchases under authorizations (in dollars per share)	$ 79.21	$ 51.09
The 2016 Stock Repurchase Authorization [Member]
Shares repurchases under authorizations (in shares)	666,475	666,475
Average price of share repurchases under authorizations (in dollars per share)	$ 78.90	$ 78.90

Note 5 - Stockholders' Equity40

Note 5 - Stockholders' Equity - Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Dividend amount per share (in dollars per share)	$ 0.25	$ 0.20	$ 0.70	$ 0.56
Total amount of dividend (in thousands)	$ 6,299	$ 5,257	$ 17,823	$ 14,739

Note 6 - Deferred Compensatio41

Note 6 - Deferred Compensation and Long-term Incentive Plan (Details Textual) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2016	Dec. 31, 2015
Maximum [Member]
Deferred Compensation Arrangement with Individual, Requisite Service Period	7 years
Other Noncurrent Liabilities [Member]
Deferred Compensation Liability, Classified, Noncurrent	$ 21.1	$ 19.7
Other Noncurrent Assets [Member]
Deferred Compensation Plan Assets	$ 21.1	$ 15.4

Note 6 - Deferred Compensatio42

Note 6 - Deferred Compensation and Long-term Incentive Plan - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Compensation expense	$ 355	$ 450	$ 887	$ 1,369
Discretionary contribution	$ 393		$ 1,785	$ 2,249
Guaranteed annual return	5.25%	5.25%	5.25%	5.25%

Note 7 - Fair Value Measureme43

Note 7 - Fair Value Measurements (Details Textual) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Jun. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Equity Method Investment, Other than Temporary Impairment		$ 10.5	$ 12.4
Impairment of Real Estate	$ 2

Note 7 - Fair Value Measureme44

Note 7 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | Building and Building Improvements [Member]
Certain buildings and improvements
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member]
Equity-method investment
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | Building and Building Improvements [Member]
Certain buildings and improvements
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member]
Equity-method investment
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Building and Building Improvements [Member]
Certain buildings and improvements		6,559
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Equity-method investment	$ 5,594	22,284
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member]
Derivative contract, net
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member]
Derivative contract, net		532
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member]
Derivative contract, net

Note 7 - Fair Value Measureme45

Note 7 - Fair Value Measurements - Long-term Fixed Interest Rate Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Carrying value	$ 291,845	$ 297,463
Fair value	$ 284,574	$ 296,961

Note 8 - Net Income Per Share46

Note 8 - Net Income Per Share of Class A and Class B Common Stock - Earnings Per Share Reconciliation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Common Class A [Member] | Employee Stock Option [Member]
Shares issuable pursuant to stock options not included since they were antidilutive (in shares)		18		17
Common Class A [Member] | Distributed [Member]
Effect of dilutive stock options on net income	$ 1	$ 3	$ 5	$ 11
Conversion of Class B to Class A common shares outstanding	439	509	1,365	1,425
Common Class A [Member] | Undistributed [Member]
Effect of dilutive stock options on net income	13	27	42	86
Conversion of Class B to Class A common shares outstanding	3,326	3,690	9,794	11,653
Common Class A [Member]
Net income applicable to common stockholders - basic	50,262	39,162	134,533	122,092
Net income applicable to common stockholders - diluted	$ 54,041	$ 43,391	$ 145,739	$ 135,267
Shares used in basic per share calculations (in shares)	23,432	23,727	23,530	23,742
Conversion of Class B common shares into Class A common shares (in shares)	1,762	2,562	1,960	2,562
Effect of dilutive stock options on weighted average common shares (in shares)	96	191	108	196
Shares used in diluted per share calculations (in shares)	25,290	26,480	25,598	26,500
Basic net income per Class A and Class B share (in dollars per share)	$ 2.14	$ 1.65	$ 5.72	$ 5.14
Diluted net income per Class A and Class B share (in dollars per share)	$ 2.14	$ 1.64	$ 5.69	$ 5.10
Common Class B [Member] | Employee Stock Option [Member]
Shares issuable pursuant to stock options not included since they were antidilutive (in shares)
Common Class B [Member] | Distributed [Member]
Effect of dilutive stock options on net income	$ (1)	$ (3)	$ (5)	$ (11)
Conversion of Class B to Class A common shares outstanding
Common Class B [Member] | Undistributed [Member]
Effect of dilutive stock options on net income	(13)	(27)	(42)	(86)
Conversion of Class B to Class A common shares outstanding
Common Class B [Member]
Net income applicable to common stockholders - basic	3,779	4,229	11,206	13,175
Net income applicable to common stockholders - diluted	$ 3,765	$ 4,199	$ 11,159	$ 13,078
Shares used in basic per share calculations (in shares)	1,762	2,562	1,960	2,562
Conversion of Class B common shares into Class A common shares (in shares)
Effect of dilutive stock options on weighted average common shares (in shares)
Shares used in diluted per share calculations (in shares)	1,762	2,562	1,960	2,562
Basic net income per Class A and Class B share (in dollars per share)	$ 2.14	$ 1.65	$ 5.72	$ 5.14
Diluted net income per Class A and Class B share (in dollars per share)	$ 2.14	$ 1.64	$ 5.69	$ 5.10
Shares used in basic per share calculations (in shares)	25,194	26,289	25,490	26,304
Shares used in diluted per share calculations (in shares)	25,290	26,480	25,598	26,500
Basic net income per Class A and Class B share (in dollars per share)	$ 2.15	$ 1.65	$ 5.72	$ 5.14
Diluted net income per Class A and Class B share (in dollars per share)	$ 2.14	$ 1.64	$ 5.69	$ 5.10

Note 9 - Equity-Method Invest47

Note 9 - Equity-Method Investment (Details Textual) - NMTC Program [Member] - USD ($) $ in Millions	1 Months Ended	9 Months Ended	12 Months Ended
	Oct. 31, 2014	Sep. 30, 2016	Dec. 31, 2015
Equity Method Investment, Ownership Percentage	99.90%
Payments to Acquire Equity Method Investments	$ 4.1	$ 17.1	$ 22.8
Equity Method Investment Equity Contribution Obligation	$ 49.8	$ 44
Equity Method Investment Equity Contribution Obligation Term	2 years

Note 9 - Equity-Method Invest48

Note 9 - Equity-Method Investment - Equity-method Investment Recorded in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Sep. 30, 2016	Dec. 31, 2015
Other Noncurrent Assets [Member]
Carrying value, recorded as a component of other non-current assets	$ 5,594	$ 22,284
Accrued Liabilities [Member]
Present value of obligation associated with future equity contributions, recorded as a component of accrued liabilities	$ 5,674	$ 22,511

Note 9 - Equity-Method Invest49

Note 9 - Equity-Method Investment - Equity-Method Investment Recorded in Consolidated Statements of Operations (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
NMTC Program [Member]
Equity Method Investment, Other than Temporary Impairment	$ 3,498	$ 4,131	$ 10,494	$ 12,391
Our portion of the partnership’s operating losses	2,066	1,731	6,197	5,196
Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions	31	155	185	549
Tax benefits and credits generated	$ 7,592	$ 7,414	20,374	22,316
Equity Method Investment, Other than Temporary Impairment			$ 10,500	$ 12,400

Note 10 - Segments (Details Tex

Note 10 - Segments (Details Textual)	9 Months Ended
	Sep. 30, 2016
Number of Reportable Segments	3

Note 10 - Segments - Certain Se

Note 10 - Segments - Certain Segment Financial Information (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Operating Segments [Member] | Domestic [Member]
Revenues:
Total revenues		$ 888,026	$ 814,216	$ 2,483,637	$ 2,273,068
Segment income*:
Segment income	[1]	32,394	33,240	84,913	91,853
Floor plan interest expense:
Floor plan interest expense		6,255	5,441	18,869	15,083
Operating Segments [Member] | Import [Member]
Revenues:
Total revenues		989,077	894,371	2,788,838	2,509,756
Segment income*:
Segment income	[1]	32,832	31,453	86,385	76,665
Floor plan interest expense:
Floor plan interest expense		4,661	3,779	13,403	11,227
Operating Segments [Member] | Luxury [Member]
Revenues:
Total revenues		392,537	374,558	1,111,215	1,084,051
Segment income*:
Segment income	[1]	7,423	8,318	21,736	25,764
Floor plan interest expense:
Floor plan interest expense		2,720	2,345	8,027	6,715
Operating Segments [Member]
Revenues:
Total revenues		2,269,640	2,083,145	6,383,690	5,866,875
Segment income*:
Segment income	[1]	72,649	73,011	193,034	194,282
Floor plan interest expense:
Floor plan interest expense		13,636	11,565	40,299	33,025
Corporate, Non-Segment [Member]
Revenues:
Total revenues		327	1,700	2,477	4,095
Segment income*:
Segment income	[1]	26,794	5,366	81,881	48,327
Corporate and Other [Member]
Floor plan interest expense:
Floor plan interest expense		(7,450)	(6,614)	(21,995)	(18,770)
Total revenues		2,269,967	2,084,845	6,386,167	5,870,970
Segment income		80,077	62,639	217,401	196,334
Depreciation and amortization		(12,206)	(10,531)	(36,372)	(30,544)
Other interest expense, net		(5,647)	(4,900)	(16,608)	(14,700)
Other expense, net		(1,513)	(307)	(4,534)	(1,031)
Floor plan interest expense		$ 6,186	$ 4,951	$ 18,304	$ 14,255
[1]	Segment income for each of the segments is defined as Income before income taxes, depreciation and amortization, other interest expense and other expense, net.

Note 10 - Segments - Segment As

Note 10 - Segments - Segment Assets (Details) - USD ($)	Sep. 30, 2016	Dec. 31, 2015
Operating Segments [Member] | Domestic [Member]
Total Assets	$ 1,086,624,000	$ 985,374,000
Operating Segments [Member] | Import [Member]
Total Assets	877,961,000	725,011,000
Operating Segments [Member] | Luxury [Member]
Total Assets	445,246,000	475,305,000
Operating Segments [Member] | Corporate and Other [Member]
Total Assets	1,153,775,000	1,041,609,000
Total Assets	$ 3,563,606,000	$ 3,227,299,000

Note 12 - Acquisitions (Details

Note 12 - Acquisitions (Details Textual)	9 Months Ended
	Sep. 30, 2016USD ($)
Acquisitions 2016 [Member]
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable	$ 0

Note 12 - Acquisitions - Revenu

Note 12 - Acquisitions - Revenue and Operating Income from Acquisitions (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Acquisitions 2016 [Member]
Revenue			$ 82,730
Operating income			993
Revenue	$ 2,269,967	$ 2,084,845	6,386,167	$ 5,870,970
Operating income	$ 93,423	$ 72,797	$ 256,847	$ 226,320

Note 12 - Acquisitions - Summar

Note 12 - Acquisitions - Summary of Acquisitions (Details) - USD ($)		9 Months Ended
		Sep. 30, 2016	Sep. 30, 2015	Dec. 31, 2015	Dec. 31, 2014
Acquisitions 2016 [Member]
Cash paid, net of cash acquired		$ 199,435,000
Assets transferred		2,637,000
		202,072,000
Inventories		112,406,000
Franchise value		6,039,000
Property and equipment		73,029,000
Other current assets		305,000
Other non-current assets		49,752
Floor plan notes payable		(7,558,000)
Debt and capital lease obligations		(23,465,000)
Other current liabilities		(5,850,000)
Other non-current liabilities		(9,605)
		195,053,000
Goodwill		7,019,000
		202,072,000
Cash paid, net of cash acquired		199,435,000	$ 34,920,000
Assets transferred		2,637,000
Goodwill	[1]	$ 219,021,000		$ 213,220,000	$ 199,375,000
[1]	Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008.

Note 12 - Acquisitions - Pro Fo

Note 12 - Acquisitions - Pro Forma Summary of all Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Revenue	$ 2,412,788	$ 2,320,323	$ 6,865,409	$ 6,547,658
Net income	$ 55,296	$ 44,490	$ 150,258	$ 138,868
Basic net income per share (in dollars per share)	$ 2.19	$ 1.69	$ 5.89	$ 5.28
Diluted net income per share (in dollars per share)	$ 2.19	$ 1.68	$ 5.87	$ 5.24

Note 14 - Subsequent Events (De

Note 14 - Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Millions	Oct. 18, 2016	Oct. 05, 2016	Sep. 30, 2016	Sep. 30, 2015	Sep. 30, 2016	Sep. 30, 2015
Subsequent Event [Member] | Common Class B [Member]
Common Stock, Dividends, Per Share, Declared	$ 0.25
Subsequent Event [Member] | Common Class A [Member]
Common Stock, Dividends, Per Share, Declared	$ 0.25
Subsequent Event [Member] | Audi Auto Gallery [Member]
Payments to Acquire Businesses, Gross		$ 22.4
Subsequent Event [Member]
Dividends, Common Stock, Cash	$ 6.3
Common Stock, Dividends, Per Share, Declared			$ 0.25	$ 0.20	$ 0.70	$ 0.56