Document And Entity Information
Document And Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 28, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Entity Registrant Name | LITHIA MOTORS INC | ||
Entity Central Index Key | 1,023,128 | ||
Trading Symbol | lad | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Public Float | $ 1,664,198 | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Common Class B [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 1,262,231 | ||
Common Class A [Member] | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding (in shares) | 23,911,176 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Current Assets: | |||
Cash and cash equivalents | $ 50,282 | $ 45,008 | |
Accounts receivable, net of allowance for doubtful accounts of $5,281 and $2,243 | 417,714 | 308,462 | |
Inventories, net | 1,772,587 | 1,470,987 | |
Other current assets | 46,611 | 54,022 | |
Total Current Assets | 2,287,194 | 1,878,479 | |
Property and equipment, net of accumulated depreciation of $167,300 and $137,853 | 1,006,130 | 876,660 | |
Goodwill | [1] | 259,399 | 213,220 |
Franchise value | 184,268 | 157,699 | |
Other non-current assets | 107,159 | 99,072 | |
Total Assets | 3,844,150 | 3,225,130 | |
Current Liabilities: | |||
Floor Plan Notes Payable | 94,602 | 48,083 | |
Floor plan notes payable: non-trade | 1,506,895 | 1,265,872 | |
Current maturities of long-term debt | 20,965 | 38,506 | |
Trade payables | 88,423 | 70,871 | |
Accrued liabilities | 211,109 | 167,107 | |
Total Current Liabilities | 1,921,994 | 1,590,439 | |
Long-term debt, less current maturities | 769,916 | 604,680 | |
Deferred revenue | 81,929 | 66,734 | |
Deferred income taxes | 59,075 | 53,129 | |
Other long-term liabilities | 100,460 | 81,984 | |
Total Liabilities | 2,933,374 | 2,396,966 | |
Stockholders' Equity: | |||
Preferred stock - no par value; authorized 15,000 shares; none outstanding | 0 | 0 | |
Additional paid-in capital | 41,225 | 38,822 | |
Accumulated other comprehensive loss | (277) | ||
Retained earnings | 703,820 | 530,893 | |
Total Stockholders' Equity | 910,776 | 828,164 | |
Total Liabilities and Stockholders' Equity | 3,844,150 | 3,225,130 | |
Common Class A [Member] | |||
Stockholders' Equity: | |||
Common stock | 165,512 | 258,410 | |
Common Class B [Member] | |||
Stockholders' Equity: | |||
Common stock | $ 219 | $ 316 | |
[1] | Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - USD ($) shares in Thousands, $ / shares in Thousands, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Allowance for doubtful accounts | $ 5,281 | $ 2,243 |
Accumulated depreciation | $ 167,300 | $ 137,853 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 15,000 | 15,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Class A [Member] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 100,000 | 100,000 |
Common stock, shares issued (in shares) | 23,382 | 23,676 |
Common stock, shares outstanding (in shares) | 23,382 | 23,676 |
Common Class B [Member] | ||
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 25,000 | 25,000 |
Common stock, shares issued (in shares) | 1,762 | 2,542 |
Common stock, shares outstanding (in shares) | 1,762 | 2,542 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenues: | |||
Total revenues | $ 8,678,157 | $ 7,864,252 | $ 5,390,326 |
Cost of sales: | |||
Total cost of sales | 7,376,842 | 6,688,618 | 4,567,004 |
Gross profit | 1,301,315 | 1,175,634 | 823,322 |
Asset impairments | 13,992 | 20,124 | 1,853 |
Selling, general and administrative | 899,590 | 811,175 | 563,207 |
Depreciation and amortization | 49,369 | 41,600 | 26,363 |
Operating income | 338,364 | 302,735 | 231,899 |
Floor plan interest expense | (25,531) | (19,534) | (13,861) |
Other interest expense | (23,207) | (19,491) | (10,742) |
Other (expense) income, net | (6,103) | (1,006) | 3,199 |
Income from continuing operations before income taxes | 283,523 | 262,704 | 210,495 |
Income tax provision | (86,465) | (79,705) | (74,955) |
Income from continuing operations, net of income tax | 197,058 | 182,999 | 135,540 |
Income from discontinued operations, net of income tax expense | 3,180 | ||
Net income | $ 197,058 | $ 182,999 | $ 138,720 |
Basic income per share from continuing operations (in dollars per share) | $ 7.76 | $ 6.96 | $ 5.19 |
Basic income per share from discontinued operations (in dollars per share) | 0.12 | ||
Basic net income per share (in dollars per share) | $ 7.76 | $ 6.96 | $ 5.31 |
Shares used in basic per share calculations (in shares) | 25,409 | 26,290 | 26,121 |
Diluted income per share from continuing operations (in dollars per share) | $ 7.72 | $ 6.91 | $ 5.14 |
Diluted income per share from discontinued operations (in dollars per share) | 0.12 | ||
Diluted net income per share (in dollars per share) | $ 7.72 | $ 6.91 | $ 5.26 |
Shares used in diluted per share calculations (in shares) | 25,521 | 26,490 | 26,382 |
Cash dividend declared per Class A and Class B share (in dollars per share) | $ 0.95 | $ 0.76 | $ 0.61 |
New Vehicle [Member] | |||
Revenues: | |||
Total revenues | $ 4,938,436 | $ 4,552,301 | $ 3,077,670 |
Cost of sales: | |||
Total cost of sales | 4,649,024 | 4,271,931 | 2,879,486 |
Used Retail Vehicle [Member] | |||
Revenues: | |||
Total revenues | 2,226,951 | 1,927,016 | 1,362,481 |
Cost of sales: | |||
Total cost of sales | 1,963,267 | 1,685,767 | 1,183,228 |
Used Wholesale Vehicle [Member] | |||
Revenues: | |||
Total revenues | 276,616 | 261,530 | 195,699 |
Cost of sales: | |||
Total cost of sales | 272,303 | 257,073 | 192,053 |
Finance and Insurance [Member] | |||
Revenues: | |||
Total revenues | 330,922 | 283,018 | 190,381 |
Service, Body and Parts [Member] | |||
Revenues: | |||
Total revenues | 844,505 | 738,990 | 512,124 |
Cost of sales: | |||
Total cost of sales | 434,222 | 375,069 | 262,388 |
Fleet and Other [Member] | |||
Revenues: | |||
Total revenues | 60,727 | 101,397 | 51,971 |
Cost of sales: | |||
Total cost of sales | $ 58,026 | $ 98,778 | $ 49,849 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Net income | $ 197,058 | $ 182,999 | $ 138,720 |
Other comprehensive income, net of tax: | |||
Gain on cash flow hedges, net of tax expense of $175, $399 and $380 | 277 | 649 | 612 |
Comprehensive income | $ 197,335 | $ 183,648 | $ 139,332 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Gain on cash flow hedges, tax expense | $ 175 | $ 399 | $ 380 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Common Stock [Member]Common Class A [Member] | Common Stock [Member]Common Class B [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Total |
Balance (in shares) at Dec. 31, 2013 | 23,329 | 2,562 | ||||
Balance at Dec. 31, 2013 | $ 268,255 | $ 319 | $ 22,598 | $ (1,538) | $ 245,088 | $ 534,722 |
Net income | 138,720 | 138,720 | ||||
Gain on cash flow hedges, net of tax expense of $175, $399 and $380 | 612 | 612 | ||||
Issuance of stock in connection with employee stock plans (in shares) | 118 | |||||
Issuance of stock in connection with employee stock plans | $ 4,590 | 4,590 | ||||
Issuance of restricted stock to employees (in shares) | 288 | |||||
Repurchase of Class A common stock (in shares) | (333) | |||||
Repurchase of Class A common stock | $ (22,968) | (22,968) | ||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | $ 6,445 | 7,177 | 13,622 | |||
Issuance of stock in connection with acquisitions (in shares) | 269 | |||||
Issuance of stock in connection with acquisitions | $ 19,736 | 19,736 | ||||
Dividends paid | (15,929) | (15,929) | ||||
Balance (in shares) at Dec. 31, 2014 | 23,671 | 2,562 | ||||
Balance at Dec. 31, 2014 | $ 276,058 | $ 319 | 29,775 | (926) | 367,879 | 673,105 |
Net income | 182,999 | 182,999 | ||||
Gain on cash flow hedges, net of tax expense of $175, $399 and $380 | 649 | 649 | ||||
Issuance of stock in connection with employee stock plans (in shares) | 74 | |||||
Issuance of stock in connection with employee stock plans | $ 6,065 | 6,065 | ||||
Issuance of restricted stock to employees (in shares) | 217 | |||||
Repurchase of Class A common stock (in shares) | (306) | |||||
Repurchase of Class A common stock | $ (31,548) | (31,548) | ||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | $ 7,832 | 9,047 | 16,879 | |||
Dividends paid | (19,985) | (19,985) | ||||
Balance (in shares) at Dec. 31, 2015 | 23,676 | 2,542 | ||||
Balance at Dec. 31, 2015 | $ 258,410 | $ 316 | 38,822 | (277) | 530,893 | 828,164 |
Class B common stock converted to Class A common stock (in shares) | 20 | |||||
Class B common stock converted to Class A common stock | $ 3 | $ (3) | ||||
Class B common stock converted to Class A common stock (in shares) | (20) | |||||
Net income | 197,058 | 197,058 | ||||
Gain on cash flow hedges, net of tax expense of $175, $399 and $380 | $ 277 | 277 | ||||
Issuance of stock in connection with employee stock plans (in shares) | 93 | |||||
Issuance of stock in connection with employee stock plans | $ 6,932 | 6,932 | ||||
Issuance of restricted stock to employees (in shares) | 241 | |||||
Repurchase of Class A common stock (in shares) | (1,408) | |||||
Repurchase of Class A common stock | $ (112,939) | (112,939) | ||||
Compensation for stock and stock option issuances and excess tax benefits from option exercises | $ 13,012 | 2,403 | 15,415 | |||
Dividends paid | (24,131) | (24,131) | ||||
Balance (in shares) at Dec. 31, 2016 | 23,382 | 1,762 | ||||
Balance at Dec. 31, 2016 | $ 165,512 | $ 219 | $ 41,225 | $ 703,820 | $ 910,776 | |
Class B common stock converted to Class A common stock (in shares) | 780 | |||||
Class B common stock converted to Class A common stock | $ 97 | $ (97) | ||||
Class B common stock converted to Class A common stock (in shares) | (780) |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders' Equity (Parentheticals) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
AOCI Attributable to Parent [Member] | |||
Gain on cash flow hedges, tax expense | $ 175 | $ 399 | $ 380 |
Gain on cash flow hedges, tax expense | $ 175 | $ 399 | $ 380 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 197,058 | $ 182,999 | $ 138,720 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Asset impairments | 13,992 | 20,124 | 1,853 |
Depreciation and amortization | 49,369 | 41,600 | 26,363 |
Stock-based compensation | 11,047 | 11,871 | 7,436 |
(Gain) loss on disposal of other assets | (4,343) | 203 | 270 |
Gain from disposal activities | (1,102) | (5,919) | (5,744) |
Deferred income taxes | 10,138 | 12,341 | 13,355 |
Excess tax benefit from share-based payment arrangements | (4,389) | (5,012) | (6,186) |
(Increase) decrease (net of acquisitions and dispositions): | |||
Trade receivables, net | (105,961) | (13,047) | (59,474) |
Inventories | (168,847) | (197,079) | (76,002) |
Other assets | (13,305) | (31,290) | (30,534) |
Increase (decrease) (net of acquisitions and dispositions): | |||
Floor plan notes payable | 16,385 | 7,035 | (647) |
Trade payables | 16,449 | 674 | (3,105) |
Accrued liabilities | 42,852 | 16,273 | (13,471) |
Other long-term liabilities and deferred revenue | 27,173 | 33,766 | 38,133 |
Net cash provided by operating activities | 86,516 | 74,539 | 30,967 |
Cash flows from investing activities: | |||
Principal payments received on notes receivable | 2,882 | ||
Capital expenditures | (100,761) | (83,244) | (85,983) |
Proceeds from sales of assets | 2,211 | 270 | 4,896 |
Cash paid for other investments | (30,280) | (28,110) | (9,110) |
Cash paid for acquisitions, net of cash acquired | (234,700) | (71,615) | (659,634) |
Proceeds from sales of stores | 11,837 | 12,966 | 10,617 |
Net cash used in investing activities | (351,693) | (169,733) | (736,332) |
Cash flows from financing activities: | |||
Borrowings on floor plan notes payable: non-trade, net | 252,893 | 136,201 | 440,341 |
Borrowings on lines of credit | 1,244,343 | 1,261,597 | 1,435,144 |
Repayments on lines of credit | (1,123,082) | (1,298,120) | (1,251,375) |
Proceeds from issuance of long-term debt | 66,466 | 75,675 | 124,902 |
Proceeds from issuance of common stock | 6,932 | 6,065 | 4,590 |
Repurchase of common stock | (112,939) | (31,548) | (22,968) |
Excess tax benefit from share-based payment arrangements | 4,389 | 5,012 | 6,186 |
Dividends paid | (24,131) | (19,985) | (15,929) |
Net cash provided by financing activities | 270,451 | 110,304 | 711,577 |
Increase in cash and cash equivalents | 5,274 | 15,110 | 6,212 |
Cash and cash equivalents at beginning of year | 45,008 | 29,898 | 23,686 |
Cash and cash equivalents at end of year | 50,282 | 45,008 | 29,898 |
Supplemental disclosure of cash flow information: | |||
Cash paid during the period for interest | 49,730 | 41,098 | 24,610 |
Cash paid during the period for income taxes, net | 57,236 | 86,533 | 63,827 |
Supplemental schedule of non-cash activities: | |||
Debt issued in connection with acquisitions | 2,160 | 55,693 | |
Non-cash assets transferred in connection with acquisitions | 2,637 | ||
Forgiven outstanding notes receivable | 1,374 | ||
Debt assumed in connection with acquisitions | 48,081 | ||
Acquisition of assets with capital leases | 8,916 | ||
Floor plan debt paid in connection with store disposals | 5,284 | 4,400 | 3,311 |
Scheduled Payments [Member] | |||
Cash flows from financing activities: | |||
Principal payments on long-term debt, scheduled | (16,717) | (15,404) | (9,314) |
Other Payments [Member] | |||
Cash flows from financing activities: | |||
Principal payments on long-term debt, scheduled | $ (27,703) | $ (9,189) |
Note 1 - Summary of Significant
Note 1 - Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Significant Accounting Policies [Text Block] | (1) Summary of Significant Accounting Policies Organization and Business We are a leading operator of automotive franchises and a retailer of new and used vehicles and related services. As of December 31, 2016, 30 154 Lithia.com DCHauto.com and CarboneCars.com We sell new and used cars and replacement parts; provide vehicle maintenance, warranty, paint and repair services; arrange related financing; and sell service contracts, vehicle protection products and credit insurance. Our dealerships are located across the United States. We seek domestic, import and luxury franchises in cities ranging from mid-sized regional markets to metropolitan markets. We evaluate all brands for expansion opportunities provided the market is large enough to support adequate new vehicle sales to justify the required capital investment. Basis of Presentation The accompanying Consolidated Financial Statements reflect the results of operations, the financial position and the cash flows for Lithia Motors, Inc. and its directly and indirectly wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand and cash in bank accounts without restrictions. Accounts Receivable Accounts receivable include amounts due from the following: • various lenders for the financing of vehicles sold; • customers for vehicles sold and service and parts sales; • manufacturers for factory rebates, dealer incentives and warranty reimbursement; and • insurance companies and other miscellaneous receivables. Receivables are recorded at invoice and do not bear interest until they are 60 2. Inventories Inventories are valued at the lower of market value or cost, using a pooled approach for vehicles and the specific identification method for parts. Certain acquired inventories are valued using the last-in first December 31, 2016 2015 Manufacturers reimburse us for holdbacks, floor plan interest assistance and advertising assistance, which are reflected as a reduction in the carrying value of each vehicle purchased. We recognize advertising assistance, floor plan interest assistance, holdbacks, cash incentives and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold. Parts are valued at the lower of market value or cost using the specific identification method. Parts purchase discounts that we receive from the manufacturer are reflected as a reduction in the carrying value of the parts purchased from the manufacturer and are recognized as a reduction to cost of goods sold as the related inventory is sold. See Note 3. Property and Equipment Property and equipment are stated at cost and depreciated over their estimated useful lives on the straight-line basis. Leasehold improvements made at the inception of the lease or during the term of the lease are amortized on a straight-line basis over the shorter of the life of the improvement or the remaining term of the lease. The range of estimated useful lives is as follows: Buildings and improvements (in years) 5 to 40 Service equipment (in years) 5 to 15 Furniture, office equipment, signs and fixtures (in years) 3 to 10 The cost for maintenance, repairs and minor renewals is expensed as incurred, while significant remodels and betterments are capitalized. In addition, interest on borrowings for major capital projects, significant remodels, and betterments are capitalized. Capitalized interest becomes a part of the cost of the depreciable asset and is depreciated according to the estimated useful lives as previously stated. For the years ended December 31, 2016, 2015 2014, $0.4 $0.5 $0.4 When an asset is retired, or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is credited or charged to income from continuing operations. Leased property meeting certain criteria are recorded as capital leases. The Company has capital leases for certain locations, expiring at various dates through December 31, 2050. 7. Long-lived assets held and used by us are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may 4 12. Goodwill Goodwill represents the excess purchase price over the fair value of net assets acquired which is not allocable to separately identifiable intangible assets. Other identifiable intangible assets, such as franchise rights, are separately recognized if the intangible asset is obtained through contractual or other legal right or if the intangible asset can be sold, transferred, licensed or exchanged. Goodwill is not amortized but tested for impairment at least annually, and more frequently if events or circumstances indicate the carrying amount of the reporting unit more likely than not exceeds fair value. We have the option to qualitatively or quantitatively assess goodwill for impairment and we evaluated our goodwill using a qualitative assessment process. Goodwill is tested for impairment at the reporting unit level. Our reporting units are individual stores as this is the level at which discrete financial information is available and for which operating results are regularly reviewed by our chief operating decision maker to allocate resources and assess performance. We test our goodwill for impairment on October 1 2016, first two 5. Franchise Value We enter into agreements (“Franchise Agreements”) with the manufacturers. Franchise value represents a right received under Franchise Agreements with manufacturers and is identified on an individual store basis. We evaluated the useful lives of our Franchise Agreements based on the following factors: • certain of our Franchise Agreements continue indefinitely by their terms; • certain of our Franchise Agreements have limited terms, but are routinely renewed without substantial cost to us; • other than franchise terminations related to the unprecedented reorganizations of Chrysler and General Motors, and allowed by bankruptcy law, we are not aware of manufacturers terminating Franchise Agreements against the wishes of the franchise owners in the ordinary course of business. A manufacturer may • state dealership franchise laws typically limit the rights of the manufacturer to terminate or not renew a franchise; • we are not aware of any legislation or other factors that would materially change the retail automotive franchise system; and • as evidenced by our acquisition and disposition history, there is an active market for most automotive dealership franchises within the United States. We attribute value to the Franchise Agreements acquired with the dealerships we purchase based on the understanding and industry practice that the Franchise Agreements will be renewed indefinitely by the manufacturer. Accordingly, we have determined that our Franchise Agreements will continue to contribute to our cash flows indefinitely and, therefore, have indefinite lives. As an indefinite-lived intangible asset, franchise value is tested for impairment at least annually, and more frequently if events or circumstances indicate the carrying value may We test our franchise value for impairment on October 1 2016, second 5. Equity-Method Investments We owned investments in certain partnerships which we account for under the equity method. These investments are included as a component of other non-current assets in our Consolidated Balance Sheets. We determined that we lack certain characteristics to direct the operations of the businesses and, as a result, do not qualify to consolidate these investments. Activity related to our equity-method investments is recognized in our Consolidated Statements of Operations as follows: • an other than temporary decline in fair value is reflected as an asset impairment; • our portion of the operating gains and losses is included as a component of other (expense) income, net; • the amortization related to the discounted fair value of future equity contributions is recognized over the life of the investments as non-cash interest expense; and • tax benefits and credits are reflected as a component of our income tax provision. Periodically, whenever events or circumstances indicate that the carrying amount of assets may 12 18. Advertising We expense production and other costs of advertising as incurred as a component of selling, general and administrative expense. Additionally, manufacturer cooperative advertising credits for qualifying, specifically-identified advertising expenditures are recognized as a reduction of advertising expense. Advertising expense and manufacturer cooperative advertising credits were as follows (in thousands): Year Ended December 31, 2016 2015 2014 Advertising expense, gross $ 101,656 $ 89,736 $ 62,933 Manufacturer cooperative advertising credits (20,293 ) (19,801 ) (16,281 ) Advertising expense, net $ 81,363 $ 69,935 $ 46,652 Contract Origination Costs Contract origination commissions paid to our employees directly related to the sale of our self-insured lifetime lube, oil and filter service contracts are deferred and charged to expense in proportion to the associated revenue to be recognized. Legal Costs We are a party to numerous legal proceedings arising in the normal course of business. We accrue for certain legal costs, including attorney fees and potential settlement claims related to various legal proceedings that are estimable and probable. See Note 7. Stock-Based Compensation Compensation costs associated with equity instruments exchanged for employee and director services are measured at the grant date, based on the fair value of the award, with estimated forfeitures considered, and recognized as an expense on the straight-line basis over the individual’s requisite service period (generally the vesting period of the equity award). If there is a performance-based element to the award, the expense is recognized based on the estimated attainment level, estimated time to achieve the attainment level and/or the vesting period. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive equity awards. The fair value of non-vested stock awards is based on the intrinsic value on the date of grant. See Note 10. Shares to be issued upon the exercise of stock options and the vesting of stock awards will come from newly issued shares. Income and Other Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized. When there are situations with uncertainty as to the timing of the deduction, the amount of the deduction, or the validity of the deduction, we adjust our financial statements to reflect only those tax positions that are more-likely-than-not to be sustained. Positions that meet this criterion are measured using the largest benefit that is more than 50% 13. We account for all taxes assessed by a governmental authority that are directly imposed on a revenue-producing transaction (i.e., sales, use, value-added) on a net (excluded from revenues) basis. Concentration of Risk and Uncertainties We purchase substantially all of our new vehicles and inventory from various manufacturers at the prevailing prices charged by auto makers to all franchised dealers. Our overall sales could be impacted by the auto manufacturers’ inability or unwillingness to supply dealerships with an adequate supply of popular models. We depend on our manufacturers to provide a supply of vehicles which supports expected sales levels. In the event that manufacturers are unable to supply the needed level of vehicles, our financial performance may We depend on our manufacturers to deliver high-quality, defect-free vehicles. In the event that manufacturers experience future quality issues, our financial performance may We are subject to a concentration of risk in the event of financial distress, including potential reorganization or bankruptcy, of a major vehicle manufacturer. Our sales volume could be materially adversely impacted by the manufacturers’ or distributors’ inability to supply the stores with an adequate supply of vehicles. We also receive incentives and rebates from our manufacturers, including cash allowances, financing programs, discounts, holdbacks and other incentives. These incentives are recorded as accounts receivable in our Consolidated Balance Sheets until payment is received. Our financial condition could be materially adversely impacted by the manufacturers’ or distributors’ inability to continue to offer these incentives and rebates at substantially similar terms, or to pay our outstanding receivables. We enter into Franchise Agreements with the manufacturers. The Franchise Agreements generally limit the location of the dealership and provide the auto manufacturer approval rights over changes in dealership management and ownership. The auto manufacturers are also entitled to terminate the Franchise Agreement if the dealership is in material breach of the terms. Our ability to expand operations depends, in part, on obtaining consents of the manufacturers for the acquisition of additional dealerships. See also “Goodwill” and “Franchise Value” above. We have a credit facility with a syndicate of 18 eight July 2021. 6. We anticipate continued organic growth and growth through acquisitions. This growth will require additional credit which may may Financial Instruments, Fair Value and Market Risks The carrying amounts of cash equivalents, accounts receivable, trade payables, accrued liabilities and short-term borrowings approximate fair value because of the short-term nature and current market rates of these instruments. Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. See Note 12. We have variable rate floor plan notes payable, mortgages and other credit line borrowings that subject us to market risk exposure. At December 31, 2016, $2.1 2.02% to 3.25% per annum. An increase or decrease in the interest rates would affect interest expense for the period accordingly. The fair value of long-term, fixed interest rate debt is subject to interest rate risk. Generally, the fair value of fixed interest rate debt will increase as interest rates fall because we could refinance for a lower rate. Conversely, the fair value of fixed interest rate debt will decrease as interest rates rise. The interest rate changes affect the fair value, but do not impact earnings or cash flows. We monitor our fixed interest rate debt regularly, refinancing debt that is materially above market rates if permitted. See Note 12. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and related notes to financial statements. Changes in such estimates may Estimates are used in the calculation of certain reserves maintained for charge-backs on estimated cancellations of service contracts; life, accident and disability insurance policies; finance fees from customer financing contracts and uncollectible accounts receivable. We also use estimates in the calculation of various expenses, accruals and reserves, including anticipated losses related to workers’ compensation insurance; anticipated losses related to self-insurance components of our property and casualty and medical insurance; self-insured lifetime lube, oil and filter service contracts; discretionary employee bonuses, the Transition Agreement with Sidney B. DeBoer, our Chairman of the Board; warranties provided on certain products and services; legal reserves and stock-based compensation. We also make certain estimates regarding the assessment of the recoverability of long-lived assets, indefinite-lived intangible assets and deferred tax assets. We offer a limited warranty on the sale of most retail used vehicles. This warranty is based on mileage and time. We also offer a mileage and time based warranty on parts used in our service repair work and on tire purchases. The cost that may December 31, 2016 2015, $0.4 $0.5 Fair Value of Assets Acquired and Liabilities Assumed We estimate the fair value of the assets acquired and liabilities assumed in a business combination using various assumptions. The most significant assumptions used relate to determining the fair value of property and equipment and intangible franchise rights. We estimate the fair value of property and equipment 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 We use an MPEE model to determine the fair value of intangible franchise rights as discussed above under “Franchise Value.” We use a relief-from-royalty method to determine the fair value of a trade name. Future cost savings associated with owning, rather than licensing, a trade name is estimated based on a royalty rate and management’s forecasted sales projections. The discount rate applied to the future cost savings factors an equity market risk premium, small stock risk premium, an average peer group beta, a risk-free interest rate and a premium for forecast risk. Revenue Recognition Revenue from the sale of a vehicle is recognized when a contract is signed by the customer, financing has been arranged or collectability is reasonably assured and the delivery of the vehicle to the customer is made. We do not allow the return of new or used vehicles, except where mandated by state law. Revenue from parts and service is recognized upon delivery of the parts or service to the customer. We allow for customer returns on sales of our parts inventory up to 30 one two Finance fees earned for notes placed with financial institutions in connection with customer vehicle financing are recognized, net of estimated charge-backs, as finance and insurance revenue upon acceptance of the credit by the financial institution and recognition of the sale of the vehicle. Insurance income from third Commissions from third Revenue related to self-insured lifetime lube, oil and filter service contracts is deferred and recognized based on expected future claims for service. The expected future claims experience is evaluated periodically to ensure it remains appropriate given actual claims history. Segment Reporting While we have determined that each individual store is a reporting unit, we have aggregated our reporting units into three 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 include the results of operations of our stand-alone collision center 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, excepted 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. See Note 19. |
Note 2 - Accounts Receivable
Note 2 - Accounts Receivable | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | (2) Accounts Receivable Accounts receivable consisted of the following (in thousands): December 31, 2016 2015 Contracts in transit $ 233,506 $ 168,460 Trade receivables 47,450 33,749 Vehicle receivables 43,937 36,470 Manufacturer receivables 76,948 59,215 Auto loan receivables 69,859 42,490 Other receivables 1,600 3,033 473,300 343,417 Less: Allowance for doubtful accounts (5,281 ) (2,243 ) Less: Long-term portion of accounts receivable, net (50,305 ) (32,712 ) Total accounts receivable, net $ 417,714 $ 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 within five ten • Trade receivables are comprised of amounts due from customers, 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 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 | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | (3) Inventories The components of inventories consisted of the following (in thousands): December 31, 2016 2015 New vehicles $ 1,338,110 $ 1,113,613 Used vehicles 368,067 302,911 Parts and accessories 66,410 54,463 Total inventories $ 1,772,587 $ 1,470,987 The new vehicle inventory cost is generally reduced by manufacturer holdbacks and incentives, while the related floor plan notes payable are reflective of the gross cost of the vehicle. As of December 31, 2016 2015, $18.1 $13.6 1. |
Note 4 - Property and Equipment
Note 4 - Property and Equipment | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Property, Plant and Equipment Disclosure [Text Block] | (4) Property and Equipment Property and equipment consisted of the following (in thousands): December 31, 2016 2015 Land $ 318,832 $ 281,982 Building and improvements 611,798 527,545 Service equipment 80,953 70,559 Furniture, office equipment, signs and fixtures 141,248 119,250 1,152,831 999,336 Less accumulated depreciation (167,300 ) (137,853 ) 985,531 861,483 Construction in progress 20,599 15,177 $ 1,006,130 $ 876,660 Long-lived Asset Impairment Charges In 2015, $3.6 2016 2014. 2016, |
Note 5 - Goodwill and Franchise
Note 5 - Goodwill and Franchise Value | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Goodwill and Intangible Assets Disclosure [Text Block] | (5) Goodwill and Franchise Value The following is a roll-forward of goodwill (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 Reductions through divestitures — (246 ) — (246 ) Balance as of December 31, 2015 ¹ 97,903 84,384 30,933 213,220 Additions through acquisitions 18,154 21,795 7,448 47,397 Reductions through divestitures (1,218 ) — — (1,218 ) Balance as of December 31, 2016 ¹ $ 114,839 $ 106,179 $ 38,381 $ 259,399 (1) Net of accumulated impairment losses of $299.3 December 31, 2008. The following is a roll-forward of franchise value (in thousands): Franchise Value Balance as of December 31, 2014 $ 150,892 Additions through acquisitions 6,843 Reductions through divestitures (36 ) Balance as of December 31, 2015 157,699 Additions through acquisitions 27,087 Reductions through divestitures (518 ) Balance as of December 31, 2016 $ 184,268 |
Note 6 - Credit Facilities and
Note 6 - Credit Facilities and Long-term Debt | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | (6) Credit Facilities and Long-Term Debt Below is a summary of our outstanding balances on credit facilities and long-term debt (in thousands): December 31, 2016 2015 New vehicle floor plan commitment $ 1,506,895 $ 1,265,872 Floor plan notes payable 94,602 48,083 Total floor plan debt 1,601,497 1,313,955 Used vehicle inventory financing facility 211,000 171,000 Revolving lines of credit 142,507 61,246 Real estate mortgages 428,367 387,861 Other debt 11,191 25,248 Debt issuance costs (2,184 ) (2,169 ) Total debt $ 2,392,378 $ 1,957,141 In April 2015, 2015 03, 835 30)." 2015 03 December 15, 2016, $2.2 December 31, 2015. Credit Facility We have a credit facility with a total financing commitment of $2.05 July 2021. 18 eight $350 $400 may $2.4 The availability of the revolving line of credit under our syndicated credit facility is determined according to a borrowing base comprised of a portion of certain accounts, receivables, invoices, inventory and equipment. The borrowing base is reduced by the sum of the outstanding aggregate principal balance of new and used vehicle floor plan loans and new and used swing line loans. Our obligations under our revolving syndicated credit facility are secured by a substantial amount of our assets, including our inventory (including new and used vehicles, parts and accessories), equipment, accounts (and other rights to payment) and our equity interests in certain of our subsidiaries. Under our revolving syndicated credit facility, our obligations relating to new vehicle floor plan loans are secured only by collateral owned by borrowers of new vehicle floor plan loans under the credit facility. We have the ability to deposit up to $50 December 31, 2016, If the outstanding principal balance on our new vehicle inventory floor plan commitment, plus requests on any day, exceeds 95% $15.0 may The interest rate on the credit facility varies based on the type of debt, with the rate of one 1.25% one 1.50% one 1.25% 2.50%, 2.02% December 31, 2016. 2.27% 2.52%, December 31, 2016. Under the terms of our credit facility we are subject to financial covenants and restrictive covenants that limit or restrict our incurring additional indebtedness, making investments, selling or acquiring assets and granting security interests in our assets. Under our credit facility, we are required to maintain the ratios detailed in the following table: Debt Covenant Ratio Requirement As of December 31, 2016 Current ratio Not less than 1.10 to 1 1.26 to 1 Fixed charge coverage ratio Not less than 1.20 to 1 2.63 to 1 Leverage ratio Not more than 5.00 to 1 2.18 to 1 Funded debt restriction Not to exceed $900 million $485.2 million Other Lines of Credit We have other lines of credit with a total financing commitment of $38.5 2018 2.77%. December 31, 2016, $36.5 Floor Plan Notes Payable We have floor plan agreements with manufacturer-affiliated finance companies for certain new vehicles and vehicles that are designated for use as service loaners. The interest rates on these floor plan notes payable commitments vary by manufacturer and are variable rates. At December 31, 2016, $94.6 3.25%. Real Estate Mortgages and Other Debt We have mortgages associated with our owned real estate. Interest rates related to this debt ranged from 2.1% to 5.0% December 31, 2016. October 2034. December 31, 2016, 64.3% Our other debt includes capital leases and sellers’ notes. The interest rates associated with our other debt ranged from 4.3% to 9.7% December 31, 2016. $11.2 December 31, 2016, December 2050. Future Principal Payments The schedule of future principal payments associated with real estate mortgages and other debt as of December 31, 2016 Year Ending December 31, 2017 $ 20,608 2018 38,150 2019 45,189 2020 37,504 2021 34,897 Thereafter 263,210 Total principal payments $ 439,558 |
Note 7 - Commitments and Contin
Note 7 - Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | (7) Leases We lease certain facilities under non-cancelable operating and capital leases. These leases expire at various dates through 2050. The minimum lease payments under our operating and capital leases after December 31, 2016 Year Ending December 31, 2017 $ 27,294 2018 25,557 2019 24,031 2020 22,226 2021 20,249 Thereafter 132,449 Total minimum lease payments 251,806 Less: sublease rentals (7,777 ) $ 244,029 Rent expense, net of sublease income, for all operating leases was $26.8 $23.8 $17.2 December 31, 2016, 2015 2014, In connection with dispositions of dealerships, we occasionally assign or sublet our interests in any real property leases associated with such dealerships to the purchaser. We often retain responsibility for the performance of certain obligations under such leases to the extent that the assignee or sublessee does not perform. Additionally, we may may Charge-Backs for Various Contracts We have recorded a liability of $44.2 December 31, 2016 Year Ending December 31, 2017 $ 24,320 2018 12,831 2019 5,188 2020 1,498 2021 320 Thereafter 71 Total $ 44,228 Lifetime Lube, Oil and Filter Contracts We retain the obligation for lifetime lube, oil and filter service contracts sold to our customers and assumed the liability of certain existing lifetime lube, oil and filter contracts. These amounts are recorded as deferred revenues. At the time of sale, we defer the full sale price and recognize the revenue based on the rate we expect future costs to be incurred. As of December 31, 2016, $99.6 Year Ending December 31, 2017 $ 19,800 2018 15,661 2019 12,511 2020 10,400 2021 8,866 Thereafter 32,402 Total $ 99,640 The current portion of this deferred revenue balance is recorded as a component of accrued liabilities in our Consolidated Balance Sheets. We periodically evaluate the estimated future costs of these assumed contracts and record a charge if future expected claim and cancellation costs exceed the deferred revenue to be recognized. As of December 31, 2016, $3.4 2011 Self-insurance Programs We self-insure a portion of our property and casualty insurance, vehicle open lot coverage, medical insurance and workers’ compensation insurance. Third parties are engaged to assist in estimating the loss exposure related to the self-retained portion of the risk associated with these insurances. Additionally, we analyze our historical loss and claims experience to estimate the loss exposure associated with these programs. As of December 31, 2016 2015, $32.8 $25.9 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, Stein v. DeBoer, et al. 15CV33696, 8 September 16, 2015. February 26, 2016. On February 12, 2016, Jessos v. DeBoer, et al. 16CV04181, March 22, 2016, April 4, 2016, 15CV33696. April 4, 2016, In re Lithia Motors Derivative Litigation 15CV33696. April 15, 2016. The Board and Mr. DeBoer filed Motions to Dismiss the consolidated complaint on May 10, 2016. August 12, 2016. October 10, 2016. December 29, 2016, California Wage and Hour Litigations In June 2012, Robles v. Tustin Motors, Inc. 30 2012 00579414, two 2013 During the pendency of Robles, related cases were filed that made substantially similar technician claims including Holzer (see below). DCH and the Robles claimants settled their individual claims in mediation in 2015. April 2016, June 14, 2014. In August 2014, Holzer v. DCH Auto Group (USA) Inc. BC558869) During the pendency of Holzer, related cases were filed that made substantially similar non-technician claims. DCH and all non-technican claimants settled their individual claims in mediation in 2017. January 2017, June 14, 2014. |
Note 8 - Stockholders' Equity
Note 8 - Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Stockholders' Equity Note Disclosure [Text Block] | (8) Stockholders’ Equity Class A and Class B Common Stock The shares of Class A common stock are not convertible into any other series or class of our securities. Each share of Class B common stock, however, is freely convertible into one 1% may third Holders of Class A common stock are entitled to one ten 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, 2 July 20, 2012, 1 February 29, 2016, $250 Share repurchases under our authorizations were as follows: Repurchases Occurring in 2016 Cumulative Repurchases as of December 31, 2016 Shares Average Price Shares Average Price 2011 Share Repurchase Authorization 599,123 $ 79.21 2,327,636 $ 51.09 2016 Share Repurchase Authorization 713,725 $ 79.74 713,725 $ 79.74 As of December 31, 2016, $193.1 2016 In addition, during 2016, 94,826 $90.46 $8.6 The following is a summary of our repurchases in the years ended December 31, 2016, 2015 2014: Year Ended December 31, 2016 2015 2014 Shares repurchased pursuant to repurchase authorizations 1,312,848 228,737 226,729 Total purchase price (in thousands) $ 104,370 $ 24,676 $ 15,990 Average purchase price per share $ 79.50 $ 107.88 $ 70.52 Shares repurchased in association with tax withholdings on the vesting of RSUs 94,826 77,649 106,772 Dividends We declared and paid dividends on our Class A and Class B Common Stock as follows: Quarter declared Dividend amount per Class A and Class B share Total amount of dividend (in thousands) 2014 First quarter $ 0.13 $ 3,378 Second quarter 0.16 4,179 Third quarter 0.16 4,174 Fourth quarter 0.16 4,198 2015 First quarter $ 0.16 $ 4,216 Second quarter 0.20 5,266 Third quarter 0.20 5,257 Fourth quarter 0.20 5,246 2016 First quarter $ 0.20 $ 5,151 Second quarter 0.25 6,373 Third quarter 0.25 6,299 Fourth quarter 0.25 6,308 Reclassification From Accumulated Other Comprehensive Loss The reclassification from accumulated other comprehensive loss was as follows (in thousands): Year Ended December 31, 2016 2015 2014 Affected Line Item in the Consolidated Statement of Operations Loss on cash flow hedges $ (219 ) $ (449 ) $ (488 ) Floor plan interest expense Income tax benefits 85 174 187 Income tax provision Loss on cash flow hedges, net $ (134 ) $ (275 ) $ (301 ) See Note 11 |
Note 9 - 401(k) Profit Sharing,
Note 9 - 401(k) Profit Sharing, Deferred Compensation and Long-term Incentive Plans | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | (9) 401(k) We have a defined contribution 401(k) $5.4 $5.3 $3.2 December 31, 2016, 2015 2014, may 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 one seven may The following is a summary related to our LTIP (in thousands): Year Ended December 31, 2016 2015 2014 Compensation expense $ 1,081 $ 1,812 $ 1,877 Total discretionary contribution $ 1,785 $ 2,249 $ 2,450 Guaranteed annual return 5.25 % 5.25 % 5.25 % As of December 31, 2016 2015, $23.5 $19.7 |
Note 10 - Stock-based Compensat
Note 10 - Stock-based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disclosure of Compensation Related Costs, Share-based Payments [Text Block] | (10) Stock-Based Compensation 2009 The 2009 “2009 1,500,000 2009 423 1986, Eligible employees are entitled to defer up to 10% $25,000 85% Following is information regarding our 2009 Year Ended December 31, 2016 Shares purchased pursuant to 2009 ESPP 94,909 Weighted average per share price of shares purchased $ 73.67 Weighted average per share discount from market value for shares purchased $ 13.00 As of December 31, 2016 Shares available for purchase pursuant to 2009 ESPP 372,751 Compensation expense related to our 2009 15% 2013 Our 2013 “2013 3.8 2013 December 31, 2016, 1,487,405 December 31, 2016, Restricted Stock Units (“RSUs”) RSU grants vest over a period up to four RSUs Weighted average grant date fair value Balance, December 31, 2015 411,074 $ 59.13 Granted 144,152 82.90 Vested (240,433 ) 47.45 Forfeited (15,809 ) 79.34 Balance, December 31, 2016 298,984 80.37 We granted 33,548 2016. four Certain key employees were granted 79,034 2016. 46,258 2016, 58.5% four Twelve 31,570 December 31, 2016 December 31, 2019. Stock-Based Compensation As of December 31, 2016, $9.4 2.1 Certain information regarding our stock-based compensation was as follows: Year Ended December 31, 2016 2015 2014 Per share intrinsic value of non-vested stock granted $ 82.90 $ 88.74 $ 68.99 Weighted average per share discount for compensation expense recognized under the 2009 ESPP 13.00 15.89 11.92 Total intrinsic value of stock options exercised (in millions) — 0.5 3.1 Fair value of non-vested stock that vested during the period (in millions) 47.5 19.3 18.9 Stock-based compensation recognized in Consolidated Statements of Operations, as a component of selling, general and administrative expense (in millions) 11.0 11.9 7.4 Tax benefit recognized in Consolidated Statements of Operations (in millions) 3.8 4.2 2.6 Cash received from options exercised and shares purchased under all share-based arrangements (in millions) 7.0 6.5 4.9 Tax deduction realized related to stock options exercised (in millions) 8.9 7.6 8.4 |
Note 11 - Derivative Financial
Note 11 - Derivative Financial Instrument | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | (11) Derivative Financial Instruments From time to time, we have entered into interest rate swaps to fix a portion of our interest expense. We do not enter into derivative instruments for any purpose other than to manage interest rate exposure to fluctuations in the one We did not have any amounts associated with derivative contracts recorded on the balance sheet as of December 31, 2016. December 31, 2015, $0.5 The effect of derivative instruments in our Consolidated Statements of Operations was as follows (in thousands): Derivatives in Cash Flow Hedging Relationships Amount of gain recognized in Accumulated OCI (effective portion) Location of loss reclassified from Accumulated OCI into Income (effective portion) Amount of loss reclassified from Accumulated OCI into Income (effective portion) Location of loss recognized in Income on derivative (ineffective portion and amount excluded from effectiveness testing) Amount of loss recognized in Income on derivative (ineffective portion and amount excluded from effectiveness testing) For the Year Ended December 31, 2016 Interest rate swap contract $ 233 Floor plan interest expense $ (219 ) Floor plan interest expense $ (352 ) For the Year Ended December 31, 2015 Interest rate swap contract $ 599 Floor plan interest expense $ (449 ) Floor plan interest expense $ (758 ) For the Year Ended December 31, 2014 Interest rate swap contract $ 505 Floor plan interest expense $ (488 ) Floor plan interest expense $ (732 ) |
Note 12 - Fair Value Measuremen
Note 12 - Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Fair Value Disclosures [Text Block] | (12) Fair Value Measurements Factors used in determining the fair value of our financial assets and liabilities are summarized into three • Level 1 • Level 2 • Level 3 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 use the income approach to determine the fair value of any interest rate swap using observable Level 2 2 first two two Inputs are collected from Bloomberg on the last market day of the period and used to determine the rate applied to discount the future cash flows. The valuation of an interest rate swap also takes into consideration estimates of our own, as well as the counterparty’s, risk of non-performance under the contract. See Note 8 11 We estimate the value of our equity-method investments, which 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. Because these valuations contain unobservable inputs, we classified the measurement of fair value of our equity-method investments 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 one 3. There were no changes to our valuation techniques during the year ended December 31, 2016. Assets and Liabilities Measured at Fair Value We did not have any amounts associated with derivative contracts, our equity method investment or long-lived assets recorded at fair value as of December 31, 2016. December 31, 2015: 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 See Note 11 4 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 $14.0 $16.5 $1.9 December 31, 2016, 2015 2014 18. Fair Value Disclosures for Financial Assets and Liabilities 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), December 31, 2016, May 1, 2018 December 31, 2050. December 31, 2016 2015 Carrying value $ 286,660 $ 297,463 Fair value 293,522 296,961 We believe the carrying value of our variable rate debt approximates fair value. |
Note 13 - Income Taxes
Note 13 - Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | (13) Income Taxes Income Tax Provision The income tax provision from continuing operations was as follows (in thousands): Year Ended December 31, 2016 2015 2014 Current: Federal $ 68,088 $ 58,408 $ 56,342 State 13,884 14,572 7,944 81,972 72,980 64,286 Deferred: Federal 4,893 6,046 10,433 State (400 ) 679 236 4,493 6,725 10,669 Total $ 86,465 $ 79,705 $ 74,955 At December 31, 2016 2015, $2.4 $23.8 The reconciliation between amounts computed using the federal income tax rate of 35% Year Ended December 31, 2016 2015 2014 Federal tax provision at statutory rate $ 99,233 $ 91,947 $ 73,673 State taxes, net of federal income tax benefit 10,784 9,357 6,526 Equity investment basis difference 9,470 11,048 1,422 Non-deductible items 1,436 882 1,766 Permanent differences related to employee stock purchase program 139 156 68 Net change in valuation allowance (5,133 ) (3,303 ) (4,121 ) General business credits (27,950 ) (29,093 ) (4,002 ) Other (1,514 ) (1,289 ) (377 ) Income tax provision $ 86,465 $ 79,705 $ 74,955 Deferred Taxes Individually significant components of the deferred tax assets and (liabilities) are presented below (in thousands): December 31, 2016 2015 Deferred tax assets: Deferred revenue and cancellation reserves $ 49,332 $ 39,323 Allowances and accruals, including state NOL carryforward amounts 49,074 43,185 Interest on derivatives — 206 Credits and other 1,781 2,581 Capital loss carryforward — 10,414 Valuation allowance (227 ) (5,360 ) Total deferred tax assets 99,960 90,349 Deferred tax liabilities: Inventories (22,253 ) (21,313 ) Goodwill (41,107 ) (31,258 ) Property and equipment, principally due to differences in depreciation (93,943 ) (84,355 ) Prepaid expenses and other (1,732 ) (6,552 ) Total deferred tax liabilities (159,035 ) (143,478 ) Total $ (59,075 ) $ (53,129 ) We consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. The ultimate realization of deferred tax assets is dependent upon future taxable income during the periods in which those temporary differences become deductible. We consider the scheduled reversal of deferred tax liabilities (including the impact of available carryback and carryforward periods), projected future taxable income and tax-planning strategies in making this assessment. As of December 31, 2016, $0.2 $5.1 18. As of December 31, 2016, 2016, $0.2 December 31, 2016. State net operating loss carryforward amounts totaled approximately $1.5 December 31, 2016 2036. $0.2 $1.5 2026. Unrecognized Tax Benefits The following is a reconciliation of our unrecognized tax benefits (in thousands): Balance, December 31, 2014 $ 1,495 Decrease related to tax positions taken - prior year (464 ) Balance, December 31, 2015 1,031 Decrease related to tax positions taken - prior year (1,031 ) Balance, December 31, 2016 $ — The unrecognized tax benefits recorded were acquired as part of the acquisition of DCH. We recorded a tax indemnification asset related to the unrecognized tax benefit as we determined the amount would be recoverable from the seller. We have no December 31, 2016. Open tax years at December 31, 2016 Federal 2013 - 2016 19 states 2012 - 2016 |
Note 14 - Acquisitions
Note 14 - Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Business Combination Disclosure [Text Block] | (14) Acquisitions In 2016, • On January 26, 2016, • On February 1, 2016, • On June 23, 2016, • On August 1, 2016, • On September 12, 2016, nine • On September 28, 2016, • On October 5, 2016, • On November 16, 2016, Revenue and operating income contributed by the 2016 Year Ended December 31, 2016 Revenue $ 266,160 Operating income 1,720 In 2015, • On May 14, 2015, • On July 31, 2015, • On August 20, 2015, • On September 28, 2015, • On October 12, 2015, • On December 17, 2015, 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 tables summarize the consideration paid for the acquisitions and the preliminary amount of identified assets acquired and liabilities assumed as of the acquisition date (in thousands): Consideration paid for the Year Ended December 31, 2016 2015 Cash paid, net of cash acquired $ 234,700 $ 71,615 Property and equipment transferred 2,637 — Forgiven outstanding notes receivable — 1,374 $ 237,337 $ 72,989 Assets acquired and liabilities assumed for the Year Ended December 31, 2016 2015 Trade receivables, net $ — $ 36 Inventories 148,915 34,374 Franchise value 27,087 6,843 Property and equipment 75,345 22,118 Other assets 990 224 Floor plan notes payable (30,134 ) — Debt and capital lease obligations (22,813 ) (2,160 ) Other liabilities (9,450 ) (2,537 ) 189,940 58,898 Goodwill 47,397 14,091 $ 237,337 $ 72,989 The purchase price allocation for Carbone Auto Group acquisition is preliminary as we have not obtained all of the detailed information to finalize the opening balance sheet related to allocation of franchise value to each reporting unit. Management has recorded the purchase price allocations based on the information that is currently available. We account for franchise value as an indefinite-lived intangible asset. We expect $47.4 2016 2016, $1.0 2015. The following unaudited pro forma summary presents consolidated information as if the acquisitions had occurred on January 1 Year Ended December 31, 2016 2015 Revenue $ 9,297,452 $ 8,905,065 Income from continuing operations, net of tax 202,639 189,505 Basic income per share from continuing operations, net of tax 7.98 7.21 Diluted income per share from continuing operations, net of tax 7.94 7.15 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, plant 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 15 - Discontinued Operatio
Note 15 - Discontinued Operations and Assets and Related Liabilities Held for Sale | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | (15) Discontinued Operations and Assets and Related Liabilities Held for Sale We classify an asset group as held for sale if the location has been sold, we have ceased operations at that location or the store meets the criteria required by U.S. generally accepted accounting standards as follows: • our management team, possessing the necessary authority, commits to a plan to sell the store; • the store is available for immediate sale in its present condition; • an active program to locate buyers and other actions that are required to sell the store are initiated; • a market for the store exists and we believe its sale is likely within one • active marketing of the store commences at a price that is reasonable in relation to the estimated fair market value; and • our management team believes it is unlikely changes will be made to the plan or the plan to dispose of the store will be withdrawn. In April 2014, September 2014 On May 1, 2014, one October 2012. Actual floor plan interest expense for a store classified as discontinued operations is directly related to the store’s new vehicles. Interest expense related to our used vehicle inventory financing and revolving line of credit is allocated based on the working capital level of the store. Interest expense included as a component of discontinued operations was as follows (in thousands): Year Ended December 31, 2016 2015 2014 Floor plan interest $ — $ — $ 32 Other interest — — 8 Total interest $ — $ — $ 40 Certain financial information related to discontinued operations was as follows (in thousands): Year Ended December 31, 2016 2015 2014 Revenue $ — $ — $ 12,569 Pre-tax loss from discontinued operations $ — $ — $ (467 ) Net gain on disposal activities — — 5,744 5,277 Income tax expense — — (2,097 ) Income from discontinued operations, net of income tax expense $ — $ — $ 3,180 Goodwill and other intangible assets disposed of $ — $ — $ 211 The net gain on disposal activities in 2014 $6.8 |
Note 16 - Related Party Transac
Note 16 - Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | (16) Related Party Transactions Transition Agreement In September 2015, January 1, 2016 third 2016. We recorded a charge of $18.3 2015 As of December 31, 2016, $17.3 |
Note 17 - Net Income Per Share
Note 17 - Net Income Per Share of Class A and Class B Common Stock | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | (17) 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 Except with respect to voting and transfer rights, the rights of the holders of our Class A and Class B common stock are identical. Our Restated Articles of Incorporation require that the Class A and Class B common stock must 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 stockholders. Additionally, Oregon law provides that amendments to our Articles of Incorporation, which would have the effect of adversely altering 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 the net income from continuing operations and weighted average shares used for our basic earnings per share (“EPS”) and diluted EPS (in thousands, except per share amounts): Year Ended December 31, 2016 2015 2014 (in thousands, except per share data) Class A Class B Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 182,369 $ 14,689 $ 165,172 $ 17,827 $ 122,246 $ 13,294 Reallocation of distributed net income as a result of conversion of dilutive stock options 8 (8 ) 15 (15 ) 15 (15 ) Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding 1,791 — 1,932 — 1,547 — Conversion of Class B common shares into Class A common shares 12,833 — 15,760 — 11,616 — Effect of dilutive stock options on net income 57 (57 ) 120 (120 ) 116 (116 ) Net income applicable to common stockholders - diluted $ 197,058 $ 14,624 $ 182,999 $ 17,692 $ 135,540 $ 13,163 Weighted average common shares outstanding – basic 23,515 1,894 23,729 2,561 23,559 2,562 Conversion of Class B common shares into Class A common shares 1,894 — 2,561 — 2,562 — Effect of dilutive stock options on weighted average common shares 112 — 200 — 261 — Weighted average common shares outstanding – diluted 25,521 1,894 26,490 2,561 26,382 2,562 Net income per common share - basic $ 7.76 $ 7.76 $ 6.96 $ 6.96 $ 5.19 $ 5.19 Net income per common share - diluted $ 7.72 $ 7.72 $ 6.91 $ 6.91 $ 5.14 $ 5.14 Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive — — 16 — 13 — |
Note 18 - Equity-method Investm
Note 18 - Equity-method Investments | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Equity Method Investments and Joint Ventures Disclosure [Text Block] | (18) Equity-Method Investments In October 2014, 99.9% $4.1 $22.8 2015 $22.8 2016. $49.8 two October 2016, December 31, 2016. This investment generated new markets tax credits under the New Markets Tax Credit Program (“NMTC Program”). The NMTC Program was established by Congress in 2000 While U.S. Bancorp Community Development Corporation exercised management control over the limited liability company, due to the economic interest we held in the entity, we determined our ownership portion of the entity was appropriately accounted for using the equity method. The following amounts related to this equity-method investment were recorded in our Consolidated Balance Sheets (in thousands): December 31, 2016 2015 Carrying value, recorded as a component of other non-current assets $ — $ 22,284 Present value of the obligation associated with future equity contributions, recorded as a component of accrued liabilities and other long-term liabilities — 22,511 The following amounts related to this equity-method investment were recorded in our Consolidated Statements of Operations (in thousands): Year Ended December 31, 2016 2015 2014 Asset impairments to write investment down to fair value $ 13,992 $ 16,521 $ 1,853 Our portion of the partnership’s operating losses 8,262 6,929 1,160 Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions 185 674 152 Tax benefits and credits generated 28,530 30,832 6,506 |
Note 19 - Segments
Note 19 - Segments | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Segment Reporting Disclosure [Text Block] | (19) Segments Certain financial information on a segment basis is as follows (in thousands): Year Ended December 31, 2016 2015 2014 Revenues: Domestic $ 3,381,715 $ 3,038,883 $ 2,569,928 Import 3,764,255 3,330,949 1,889,579 Luxury 1,528,760 1,490,632 926,856 8,674,730 7,860,464 5,386,363 Corporate and other 3,427 3,788 3,963 $ 8,678,157 $ 7,864,252 $ 5,390,326 Segment income*: Domestic $ 106,210 $ 115,145 $ 96,608 Import 110,204 98,751 51,150 Luxury 31,467 36,391 25,448 247,881 250,287 173,206 Corporate and other 114,321 74,514 71,195 Depreciation and amortization (49,369 ) (41,600 ) (26,363 ) Other interest expense (23,207 ) (19,491 ) (10,742 ) Other (expense) income, net (6,103 ) (1,006 ) 3,199 Income from continuing operations before income taxes $ 283,523 $ 262,704 $ 210,495 *Segment income for each of the segments is defined as Income from continuing operations before income taxes, depreciation and amortization, other interest expense and other (expense) income, net. Year Ended December 31, 2016 2015 2014 Floor plan interest expense: Domestic $ 26,445 $ 21,061 $ 17,895 Import 18,665 14,959 9,397 Luxury 10,999 9,096 5,098 56,109 45,116 32,390 Corporate and other (30,578 ) (25,582 ) (18,529 ) $ 25,531 $ 19,534 $ 13,861 December 31, 2016 2015 Total assets: Domestic $ 1,225,387 $ 993,426 Import 959,355 716,959 Luxury 511,779 475,305 Corporate and other 1,147,629 1,039,440 $ 3,844,150 $ 3,225,130 |
Note 20 - Recent Accounting Pro
Note 20 - Recent Accounting Pronouncements | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Description of New Accounting Pronouncements Not yet Adopted [Text Block] | (20) Recent Accounting Pronouncements In May 2014, 2014 09, July 2015, December 15, 2017 December 15, 2016, In July 2015, 2015 11, 330)." 2015 11 first 2015 11 December 15, 2016 2015 11 In February 2016, 2016 02, 2016 02 2016 02 December 15, 2018, In March 2016, 2016 09, 2016 09 2016 09 December 15, 2016, first In August 2016, 2016 15, 2016 15 eight 2016 15 December 15, 2017, In January 2017, 2017 04, 350) 2017 04 2 zero 2017 04 December 15, 2019, January 1, 2017. 2017 04 |
Note 21 - Subsequent Events
Note 21 - Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Notes to Financial Statements | |
Subsequent Events [Text Block] | (21) Subsequent Events Common Stock Dividend On February 13, 2017, $0.25 fourth 2016 $6.3 March 24, 2017 March 10, 2017. |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Accounting, Policy [Policy Text Block] | Basis of Presentation The accompanying Consolidated Financial Statements reflect the results of operations, the financial position and the cash flows for Lithia Motors, Inc. and its directly and indirectly wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. |
Cash and Cash Equivalents, Policy [Policy Text Block] | Cash and Cash Equivalents Cash and cash equivalents are defined as cash on hand and cash in bank accounts without restrictions. |
Receivables, Policy [Policy Text Block] | Accounts Receivable Accounts receivable include amounts due from the following: • various lenders for the financing of vehicles sold; • customers for vehicles sold and service and parts sales; • manufacturers for factory rebates, dealer incentives and warranty reimbursement; and • insurance companies and other miscellaneous receivables. Receivables are recorded at invoice and do not bear interest until they are 60 2. |
Inventory, Policy [Policy Text Block] | Inventories Inventories are valued at the lower of market value or cost, using a pooled approach for vehicles and the specific identification method for parts. Certain acquired inventories are valued using the last-in first December 31, 2016 2015 Manufacturers reimburse us for holdbacks, floor plan interest assistance and advertising assistance, which are reflected as a reduction in the carrying value of each vehicle purchased. We recognize advertising assistance, floor plan interest assistance, holdbacks, cash incentives and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold. Parts are valued at the lower of market value or cost using the specific identification method. Parts purchase discounts that we receive from the manufacturer are reflected as a reduction in the carrying value of the parts purchased from the manufacturer and are recognized as a reduction to cost of goods sold as the related inventory is sold. See Note 3. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property and Equipment Property and equipment are stated at cost and depreciated over their estimated useful lives on the straight-line basis. Leasehold improvements made at the inception of the lease or during the term of the lease are amortized on a straight-line basis over the shorter of the life of the improvement or the remaining term of the lease. The range of estimated useful lives is as follows: Buildings and improvements (in years) 5 to 40 Service equipment (in years) 5 to 15 Furniture, office equipment, signs and fixtures (in years) 3 to 10 The cost for maintenance, repairs and minor renewals is expensed as incurred, while significant remodels and betterments are capitalized. In addition, interest on borrowings for major capital projects, significant remodels, and betterments are capitalized. Capitalized interest becomes a part of the cost of the depreciable asset and is depreciated according to the estimated useful lives as previously stated. For the years ended December 31, 2016, 2015 2014, $0.4 $0.5 $0.4 When an asset is retired, or otherwise disposed of, the related cost and accumulated depreciation are removed from the accounts and any gain or loss is credited or charged to income from continuing operations. Leased property meeting certain criteria are recorded as capital leases. The Company has capital leases for certain locations, expiring at various dates through December 31, 2050. 7. Long-lived assets held and used by us are reviewed for impairment whenever events or circumstances indicate that the carrying amount of assets may 4 12. |
Goodwill and Intangible Assets, Goodwill, Policy [Policy Text Block] | Goodwill Goodwill represents the excess purchase price over the fair value of net assets acquired which is not allocable to separately identifiable intangible assets. Other identifiable intangible assets, such as franchise rights, are separately recognized if the intangible asset is obtained through contractual or other legal right or if the intangible asset can be sold, transferred, licensed or exchanged. Goodwill is not amortized but tested for impairment at least annually, and more frequently if events or circumstances indicate the carrying amount of the reporting unit more likely than not exceeds fair value. We have the option to qualitatively or quantitatively assess goodwill for impairment and we evaluated our goodwill using a qualitative assessment process. Goodwill is tested for impairment at the reporting unit level. Our reporting units are individual stores as this is the level at which discrete financial information is available and for which operating results are regularly reviewed by our chief operating decision maker to allocate resources and assess performance. We test our goodwill for impairment on October 1 2016, first two 5. |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy [Policy Text Block] | Franchise Value We enter into agreements (“Franchise Agreements”) with the manufacturers. Franchise value represents a right received under Franchise Agreements with manufacturers and is identified on an individual store basis. We evaluated the useful lives of our Franchise Agreements based on the following factors: • certain of our Franchise Agreements continue indefinitely by their terms; • certain of our Franchise Agreements have limited terms, but are routinely renewed without substantial cost to us; • other than franchise terminations related to the unprecedented reorganizations of Chrysler and General Motors, and allowed by bankruptcy law, we are not aware of manufacturers terminating Franchise Agreements against the wishes of the franchise owners in the ordinary course of business. A manufacturer may • state dealership franchise laws typically limit the rights of the manufacturer to terminate or not renew a franchise; • we are not aware of any legislation or other factors that would materially change the retail automotive franchise system; and • as evidenced by our acquisition and disposition history, there is an active market for most automotive dealership franchises within the United States. We attribute value to the Franchise Agreements acquired with the dealerships we purchase based on the understanding and industry practice that the Franchise Agreements will be renewed indefinitely by the manufacturer. Accordingly, we have determined that our Franchise Agreements will continue to contribute to our cash flows indefinitely and, therefore, have indefinite lives. As an indefinite-lived intangible asset, franchise value is tested for impairment at least annually, and more frequently if events or circumstances indicate the carrying value may We test our franchise value for impairment on October 1 2016, second 5. |
Equity Method Investments, Policy [Policy Text Block] | Equity-Method Investments We owned investments in certain partnerships which we account for under the equity method. These investments are included as a component of other non-current assets in our Consolidated Balance Sheets. We determined that we lack certain characteristics to direct the operations of the businesses and, as a result, do not qualify to consolidate these investments. Activity related to our equity-method investments is recognized in our Consolidated Statements of Operations as follows: • an other than temporary decline in fair value is reflected as an asset impairment; • our portion of the operating gains and losses is included as a component of other (expense) income, net; • the amortization related to the discounted fair value of future equity contributions is recognized over the life of the investments as non-cash interest expense; and • tax benefits and credits are reflected as a component of our income tax provision. Periodically, whenever events or circumstances indicate that the carrying amount of assets may 12 18. |
Advertising Costs, Policy [Policy Text Block] | Advertising We expense production and other costs of advertising as incurred as a component of selling, general and administrative expense. Additionally, manufacturer cooperative advertising credits for qualifying, specifically-identified advertising expenditures are recognized as a reduction of advertising expense. Advertising expense and manufacturer cooperative advertising credits were as follows (in thousands): Year Ended December 31, 2016 2015 2014 Advertising expense, gross $ 101,656 $ 89,736 $ 62,933 Manufacturer cooperative advertising credits (20,293 ) (19,801 ) (16,281 ) Advertising expense, net $ 81,363 $ 69,935 $ 46,652 |
Contract Origination Costs Policy [Policy Text Block] | Contract Origination Costs Contract origination commissions paid to our employees directly related to the sale of our self-insured lifetime lube, oil and filter service contracts are deferred and charged to expense in proportion to the associated revenue to be recognized. |
Legal Costs, Policy [Policy Text Block] | Legal Costs We are a party to numerous legal proceedings arising in the normal course of business. We accrue for certain legal costs, including attorney fees and potential settlement claims related to various legal proceedings that are estimable and probable. See Note 7. |
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | Stock-Based Compensation Compensation costs associated with equity instruments exchanged for employee and director services are measured at the grant date, based on the fair value of the award, with estimated forfeitures considered, and recognized as an expense on the straight-line basis over the individual’s requisite service period (generally the vesting period of the equity award). If there is a performance-based element to the award, the expense is recognized based on the estimated attainment level, estimated time to achieve the attainment level and/or the vesting period. Estimates of fair value are not intended to predict actual future events or the value ultimately realized by persons who receive equity awards. The fair value of non-vested stock awards is based on the intrinsic value on the date of grant. See Note 10. Shares to be issued upon the exercise of stock options and the vesting of stock awards will come from newly issued shares. |
Income Tax, Policy [Policy Text Block] | Income and Other Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carryforwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. A valuation allowance, if needed, reduces deferred tax assets when it is more likely than not that some or all of the deferred tax assets will not be realized. When there are situations with uncertainty as to the timing of the deduction, the amount of the deduction, or the validity of the deduction, we adjust our financial statements to reflect only those tax positions that are more-likely-than-not to be sustained. Positions that meet this criterion are measured using the largest benefit that is more than 50% 13. We account for all taxes assessed by a governmental authority that are directly imposed on a revenue-producing transaction (i.e., sales, use, value-added) on a net (excluded from revenues) basis. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentration of Risk and Uncertainties We purchase substantially all of our new vehicles and inventory from various manufacturers at the prevailing prices charged by auto makers to all franchised dealers. Our overall sales could be impacted by the auto manufacturers’ inability or unwillingness to supply dealerships with an adequate supply of popular models. We depend on our manufacturers to provide a supply of vehicles which supports expected sales levels. In the event that manufacturers are unable to supply the needed level of vehicles, our financial performance may We depend on our manufacturers to deliver high-quality, defect-free vehicles. In the event that manufacturers experience future quality issues, our financial performance may We are subject to a concentration of risk in the event of financial distress, including potential reorganization or bankruptcy, of a major vehicle manufacturer. Our sales volume could be materially adversely impacted by the manufacturers’ or distributors’ inability to supply the stores with an adequate supply of vehicles. We also receive incentives and rebates from our manufacturers, including cash allowances, financing programs, discounts, holdbacks and other incentives. These incentives are recorded as accounts receivable in our Consolidated Balance Sheets until payment is received. Our financial condition could be materially adversely impacted by the manufacturers’ or distributors’ inability to continue to offer these incentives and rebates at substantially similar terms, or to pay our outstanding receivables. We enter into Franchise Agreements with the manufacturers. The Franchise Agreements generally limit the location of the dealership and provide the auto manufacturer approval rights over changes in dealership management and ownership. The auto manufacturers are also entitled to terminate the Franchise Agreement if the dealership is in material breach of the terms. Our ability to expand operations depends, in part, on obtaining consents of the manufacturers for the acquisition of additional dealerships. See also “Goodwill” and “Franchise Value” above. We have a credit facility with a syndicate of 18 eight July 2021. 6. We anticipate continued organic growth and growth through acquisitions. This growth will require additional credit which may may |
Fair Value of Financial Instruments, Policy [Policy Text Block] | Financial Instruments, Fair Value and Market Risks The carrying amounts of cash equivalents, accounts receivable, trade payables, accrued liabilities and short-term borrowings approximate fair value because of the short-term nature and current market rates of these instruments. Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. See Note 12. We have variable rate floor plan notes payable, mortgages and other credit line borrowings that subject us to market risk exposure. At December 31, 2016, $2.1 2.02% to 3.25% per annum. An increase or decrease in the interest rates would affect interest expense for the period accordingly. The fair value of long-term, fixed interest rate debt is subject to interest rate risk. Generally, the fair value of fixed interest rate debt will increase as interest rates fall because we could refinance for a lower rate. Conversely, the fair value of fixed interest rate debt will decrease as interest rates rise. The interest rate changes affect the fair value, but do not impact earnings or cash flows. We monitor our fixed interest rate debt regularly, refinancing debt that is materially above market rates if permitted. See Note 12. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the amounts reported in the Consolidated Financial Statements and related notes to financial statements. Changes in such estimates may Estimates are used in the calculation of certain reserves maintained for charge-backs on estimated cancellations of service contracts; life, accident and disability insurance policies; finance fees from customer financing contracts and uncollectible accounts receivable. We also use estimates in the calculation of various expenses, accruals and reserves, including anticipated losses related to workers’ compensation insurance; anticipated losses related to self-insurance components of our property and casualty and medical insurance; self-insured lifetime lube, oil and filter service contracts; discretionary employee bonuses, the Transition Agreement with Sidney B. DeBoer, our Chairman of the Board; warranties provided on certain products and services; legal reserves and stock-based compensation. We also make certain estimates regarding the assessment of the recoverability of long-lived assets, indefinite-lived intangible assets and deferred tax assets. We offer a limited warranty on the sale of most retail used vehicles. This warranty is based on mileage and time. We also offer a mileage and time based warranty on parts used in our service repair work and on tire purchases. The cost that may December 31, 2016 2015, $0.4 $0.5 |
Fair Value Measurement, Policy [Policy Text Block] | Fair Value of Assets Acquired and Liabilities Assumed We estimate the fair value of the assets acquired and liabilities assumed in a business combination using various assumptions. The most significant assumptions used relate to determining the fair value of property and equipment and intangible franchise rights. We estimate the fair value of property and equipment 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 We use an MPEE model to determine the fair value of intangible franchise rights as discussed above under “Franchise Value.” We use a relief-from-royalty method to determine the fair value of a trade name. Future cost savings associated with owning, rather than licensing, a trade name is estimated based on a royalty rate and management’s forecasted sales projections. The discount rate applied to the future cost savings factors an equity market risk premium, small stock risk premium, an average peer group beta, a risk-free interest rate and a premium for forecast risk. |
Revenue Recognition, Policy [Policy Text Block] | Revenue Recognition Revenue from the sale of a vehicle is recognized when a contract is signed by the customer, financing has been arranged or collectability is reasonably assured and the delivery of the vehicle to the customer is made. We do not allow the return of new or used vehicles, except where mandated by state law. Revenue from parts and service is recognized upon delivery of the parts or service to the customer. We allow for customer returns on sales of our parts inventory up to 30 one two Finance fees earned for notes placed with financial institutions in connection with customer vehicle financing are recognized, net of estimated charge-backs, as finance and insurance revenue upon acceptance of the credit by the financial institution and recognition of the sale of the vehicle. Insurance income from third Commissions from third Revenue related to self-insured lifetime lube, oil and filter service contracts is deferred and recognized based on expected future claims for service. The expected future claims experience is evaluated periodically to ensure it remains appropriate given actual claims history. |
Segment Reporting, Policy [Policy Text Block] | Segment Reporting While we have determined that each individual store is a reporting unit, we have aggregated our reporting units into three 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 include the results of operations of our stand-alone collision center 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, excepted 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. See Note 19. |
Note 1 - Summary of Significa32
Note 1 - Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Property Plant and Equipment, Estimated Useful Lives [Table Text Block] | Buildings and improvements (in years) 5 to 40 Service equipment (in years) 5 to 15 Furniture, office equipment, signs and fixtures (in years) 3 to 10 |
Advertising Expense, and Cooperative Advertising Credits [Table Text Block] | Year Ended December 31, 2016 2015 2014 Advertising expense, gross $ 101,656 $ 89,736 $ 62,933 Manufacturer cooperative advertising credits (20,293 ) (19,801 ) (16,281 ) Advertising expense, net $ 81,363 $ 69,935 $ 46,652 |
Note 2 - Accounts Receivable (T
Note 2 - Accounts Receivable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31, 2016 2015 Contracts in transit $ 233,506 $ 168,460 Trade receivables 47,450 33,749 Vehicle receivables 43,937 36,470 Manufacturer receivables 76,948 59,215 Auto loan receivables 69,859 42,490 Other receivables 1,600 3,033 473,300 343,417 Less: Allowance for doubtful accounts (5,281 ) (2,243 ) Less: Long-term portion of accounts receivable, net (50,305 ) (32,712 ) Total accounts receivable, net $ 417,714 $ 308,462 |
Note 3 - Inventories (Tables)
Note 3 - Inventories (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | December 31, 2016 2015 New vehicles $ 1,338,110 $ 1,113,613 Used vehicles 368,067 302,911 Parts and accessories 66,410 54,463 Total inventories $ 1,772,587 $ 1,470,987 |
Note 4 - Property and Equipme35
Note 4 - Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Property, Plant and Equipment [Table Text Block] | December 31, 2016 2015 Land $ 318,832 $ 281,982 Building and improvements 611,798 527,545 Service equipment 80,953 70,559 Furniture, office equipment, signs and fixtures 141,248 119,250 1,152,831 999,336 Less accumulated depreciation (167,300 ) (137,853 ) 985,531 861,483 Construction in progress 20,599 15,177 $ 1,006,130 $ 876,660 |
Note 5 - Goodwill and Franchi36
Note 5 - Goodwill and Franchise Value (Tables) | 12 Months Ended |
Dec. 31, 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 Reductions through divestitures — (246 ) — (246 ) Balance as of December 31, 2015 ¹ 97,903 84,384 30,933 213,220 Additions through acquisitions 18,154 21,795 7,448 47,397 Reductions through divestitures (1,218 ) — — (1,218 ) Balance as of December 31, 2016 ¹ $ 114,839 $ 106,179 $ 38,381 $ 259,399 |
Schedule of Indefinite-Lived Intangible Assets [Table Text Block] | Franchise Value Balance as of December 31, 2014 $ 150,892 Additions through acquisitions 6,843 Reductions through divestitures (36 ) Balance as of December 31, 2015 157,699 Additions through acquisitions 27,087 Reductions through divestitures (518 ) Balance as of December 31, 2016 $ 184,268 |
Note 6 - Credit Facilities an37
Note 6 - Credit Facilities and Long-term Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | December 31, 2016 2015 New vehicle floor plan commitment $ 1,506,895 $ 1,265,872 Floor plan notes payable 94,602 48,083 Total floor plan debt 1,601,497 1,313,955 Used vehicle inventory financing facility 211,000 171,000 Revolving lines of credit 142,507 61,246 Real estate mortgages 428,367 387,861 Other debt 11,191 25,248 Debt issuance costs (2,184 ) (2,169 ) Total debt $ 2,392,378 $ 1,957,141 |
Debt Covenant Terms [Table Text Block] | Debt Covenant Ratio Requirement As of December 31, 2016 Current ratio Not less than 1.10 to 1 1.26 to 1 Fixed charge coverage ratio Not less than 1.20 to 1 2.63 to 1 Leverage ratio Not more than 5.00 to 1 2.18 to 1 Funded debt restriction Not to exceed $900 million $485.2 million |
Schedule of Maturities of Long-term Debt [Table Text Block] | Year Ending December 31, 2017 $ 20,608 2018 38,150 2019 45,189 2020 37,504 2021 34,897 Thereafter 263,210 Total principal payments $ 439,558 |
Note 7 - Commitments and Cont38
Note 7 - Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule Of Future Minimum Lease Payments [Table Text Block] | Year Ending December 31, 2017 $ 27,294 2018 25,557 2019 24,031 2020 22,226 2021 20,249 Thereafter 132,449 Total minimum lease payments 251,806 Less: sublease rentals (7,777 ) $ 244,029 |
Charge Backs Estimated Future Payments [Table Text Block] | Year Ending December 31, 2017 $ 24,320 2018 12,831 2019 5,188 2020 1,498 2021 320 Thereafter 71 Total $ 44,228 |
Schedule of Deferred Revenue Future Recognition [Table Text Block] | Year Ending December 31, 2017 $ 19,800 2018 15,661 2019 12,511 2020 10,400 2021 8,866 Thereafter 32,402 Total $ 99,640 |
Note 8 - Stockholders' Equity (
Note 8 - Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Stock Repurchased and Retired [Table Text Block] | Repurchases Occurring in 2016 Cumulative Repurchases as of December 31, 2016 Shares Average Price Shares Average Price 2011 Share Repurchase Authorization 599,123 $ 79.21 2,327,636 $ 51.09 2016 Share Repurchase Authorization 713,725 $ 79.74 713,725 $ 79.74 Year Ended December 31, 2016 2015 2014 Shares repurchased pursuant to repurchase authorizations 1,312,848 228,737 226,729 Total purchase price (in thousands) $ 104,370 $ 24,676 $ 15,990 Average purchase price per share $ 79.50 $ 107.88 $ 70.52 Shares repurchased in association with tax withholdings on the vesting of RSUs 94,826 77,649 106,772 |
Dividends Declared [Table Text Block] | Quarter declared Dividend amount per Class A and Class B share Total amount of dividend (in thousands) 2014 First quarter $ 0.13 $ 3,378 Second quarter 0.16 4,179 Third quarter 0.16 4,174 Fourth quarter 0.16 4,198 2015 First quarter $ 0.16 $ 4,216 Second quarter 0.20 5,266 Third quarter 0.20 5,257 Fourth quarter 0.20 5,246 2016 First quarter $ 0.20 $ 5,151 Second quarter 0.25 6,373 Third quarter 0.25 6,299 Fourth quarter 0.25 6,308 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | Year Ended December 31, 2016 2015 2014 Affected Line Item in the Consolidated Statement of Operations Loss on cash flow hedges $ (219 ) $ (449 ) $ (488 ) Floor plan interest expense Income tax benefits 85 174 187 Income tax provision Loss on cash flow hedges, net $ (134 ) $ (275 ) $ (301 ) |
Note 9 - 401(k) Profit Sharin40
Note 9 - 401(k) Profit Sharing, Deferred Compensation and Long-term Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 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] | Year Ended December 31, 2016 2015 2014 Compensation expense $ 1,081 $ 1,812 $ 1,877 Total discretionary contribution $ 1,785 $ 2,249 $ 2,450 Guaranteed annual return 5.25 % 5.25 % 5.25 % |
Note 10 - Stock-based Compens41
Note 10 - Stock-based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Share-based Compensation, Employee Stock Purchase Plan, Activity [Table Text Block] | Year Ended December 31, 2016 Shares purchased pursuant to 2009 ESPP 94,909 Weighted average per share price of shares purchased $ 73.67 Weighted average per share discount from market value for shares purchased $ 13.00 As of December 31, 2016 Shares available for purchase pursuant to 2009 ESPP 372,751 |
Schedule of Share-based Compensation, Restricted Stock and Restricted Stock Units Activity [Table Text Block] | RSUs Weighted average grant date fair value Balance, December 31, 2015 411,074 $ 59.13 Granted 144,152 82.90 Vested (240,433 ) 47.45 Forfeited (15,809 ) 79.34 Balance, December 31, 2016 298,984 80.37 |
Disclosure of Share-based Compensation Arrangements by Share-based Payment Award [Table Text Block] | Year Ended December 31, 2016 2015 2014 Per share intrinsic value of non-vested stock granted $ 82.90 $ 88.74 $ 68.99 Weighted average per share discount for compensation expense recognized under the 2009 ESPP 13.00 15.89 11.92 Total intrinsic value of stock options exercised (in millions) — 0.5 3.1 Fair value of non-vested stock that vested during the period (in millions) 47.5 19.3 18.9 Stock-based compensation recognized in Consolidated Statements of Operations, as a component of selling, general and administrative expense (in millions) 11.0 11.9 7.4 Tax benefit recognized in Consolidated Statements of Operations (in millions) 3.8 4.2 2.6 Cash received from options exercised and shares purchased under all share-based arrangements (in millions) 7.0 6.5 4.9 Tax deduction realized related to stock options exercised (in millions) 8.9 7.6 8.4 |
Note 11 - Derivative Financia42
Note 11 - Derivative Financial Instrument (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Derivative Instruments, Gain (Loss) [Table Text Block] | Derivatives in Cash Flow Hedging Relationships Amount of gain recognized in Accumulated OCI (effective portion) Location of loss reclassified from Accumulated OCI into Income (effective portion) Amount of loss reclassified from Accumulated OCI into Income (effective portion) Location of loss recognized in Income on derivative (ineffective portion and amount excluded from effectiveness testing) Amount of loss recognized in Income on derivative (ineffective portion and amount excluded from effectiveness testing) For the Year Ended December 31, 2016 Interest rate swap contract $ 233 Floor plan interest expense $ (219 ) Floor plan interest expense $ (352 ) For the Year Ended December 31, 2015 Interest rate swap contract $ 599 Floor plan interest expense $ (449 ) Floor plan interest expense $ (758 ) For the Year Ended December 31, 2014 Interest rate swap contract $ 505 Floor plan interest expense $ (488 ) Floor plan interest expense $ (732 ) |
Note 12 - Fair Value Measurem43
Note 12 - Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Fair Value Measurements, Recurring and Nonrecurring [Table Text Block] | 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] | December 31, 2016 2015 Carrying value $ 286,660 $ 297,463 Fair value 293,522 296,961 |
Note 13 - Income Taxes (Tables)
Note 13 - Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year Ended December 31, 2016 2015 2014 Current: Federal $ 68,088 $ 58,408 $ 56,342 State 13,884 14,572 7,944 81,972 72,980 64,286 Deferred: Federal 4,893 6,046 10,433 State (400 ) 679 236 4,493 6,725 10,669 Total $ 86,465 $ 79,705 $ 74,955 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | Year Ended December 31, 2016 2015 2014 Federal tax provision at statutory rate $ 99,233 $ 91,947 $ 73,673 State taxes, net of federal income tax benefit 10,784 9,357 6,526 Equity investment basis difference 9,470 11,048 1,422 Non-deductible items 1,436 882 1,766 Permanent differences related to employee stock purchase program 139 156 68 Net change in valuation allowance (5,133 ) (3,303 ) (4,121 ) General business credits (27,950 ) (29,093 ) (4,002 ) Other (1,514 ) (1,289 ) (377 ) Income tax provision $ 86,465 $ 79,705 $ 74,955 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31, 2016 2015 Deferred tax assets: Deferred revenue and cancellation reserves $ 49,332 $ 39,323 Allowances and accruals, including state NOL carryforward amounts 49,074 43,185 Interest on derivatives — 206 Credits and other 1,781 2,581 Capital loss carryforward — 10,414 Valuation allowance (227 ) (5,360 ) Total deferred tax assets 99,960 90,349 Deferred tax liabilities: Inventories (22,253 ) (21,313 ) Goodwill (41,107 ) (31,258 ) Property and equipment, principally due to differences in depreciation (93,943 ) (84,355 ) Prepaid expenses and other (1,732 ) (6,552 ) Total deferred tax liabilities (159,035 ) (143,478 ) Total $ (59,075 ) $ (53,129 ) |
Schedule of Unrecognized Tax Benefits Roll Forward [Table Text Block] | Balance, December 31, 2014 $ 1,495 Decrease related to tax positions taken - prior year (464 ) Balance, December 31, 2015 1,031 Decrease related to tax positions taken - prior year (1,031 ) Balance, December 31, 2016 $ — |
Summary of Income Tax Contingencies [Table Text Block] | Federal 2013 - 2016 19 states 2012 - 2016 |
Note 14 - Acquisitions (Tables)
Note 14 - Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Operating Results from Acquisitions [Table Text Block] | Year Ended December 31, 2016 Revenue $ 266,160 Operating income 1,720 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | Consideration paid for the Year Ended December 31, 2016 2015 Cash paid, net of cash acquired $ 234,700 $ 71,615 Property and equipment transferred 2,637 — Forgiven outstanding notes receivable — 1,374 $ 237,337 $ 72,989 Assets acquired and liabilities assumed for the Year Ended December 31, 2016 2015 Trade receivables, net $ — $ 36 Inventories 148,915 34,374 Franchise value 27,087 6,843 Property and equipment 75,345 22,118 Other assets 990 224 Floor plan notes payable (30,134 ) — Debt and capital lease obligations (22,813 ) (2,160 ) Other liabilities (9,450 ) (2,537 ) 189,940 58,898 Goodwill 47,397 14,091 $ 237,337 $ 72,989 |
Business Acquisition, Pro Forma Information [Table Text Block] | Year Ended December 31, 2016 2015 Revenue $ 9,297,452 $ 8,905,065 Income from continuing operations, net of tax 202,639 189,505 Basic income per share from continuing operations, net of tax 7.98 7.21 Diluted income per share from continuing operations, net of tax 7.94 7.15 |
Note 15 - Discontinued Operat46
Note 15 - Discontinued Operations and Assets and Related Liabilities Held for Sale (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Disposal Groups, Including Discontinued Operations [Table Text Block] | Year Ended December 31, 2016 2015 2014 Floor plan interest $ — $ — $ 32 Other interest — — 8 Total interest $ — $ — $ 40 Year Ended December 31, 2016 2015 2014 Revenue $ — $ — $ 12,569 Pre-tax loss from discontinued operations $ — $ — $ (467 ) Net gain on disposal activities — — 5,744 5,277 Income tax expense — — (2,097 ) Income from discontinued operations, net of income tax expense $ — $ — $ 3,180 Goodwill and other intangible assets disposed of $ — $ — $ 211 |
Note 17 - Net Income Per Shar47
Note 17 - Net Income Per Share of Class A and Class B Common Stock (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year Ended December 31, 2016 2015 2014 (in thousands, except per share data) Class A Class B Class A Class B Class A Class B Net income applicable to common stockholders - basic $ 182,369 $ 14,689 $ 165,172 $ 17,827 $ 122,246 $ 13,294 Reallocation of distributed net income as a result of conversion of dilutive stock options 8 (8 ) 15 (15 ) 15 (15 ) Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding 1,791 — 1,932 — 1,547 — Conversion of Class B common shares into Class A common shares 12,833 — 15,760 — 11,616 — Effect of dilutive stock options on net income 57 (57 ) 120 (120 ) 116 (116 ) Net income applicable to common stockholders - diluted $ 197,058 $ 14,624 $ 182,999 $ 17,692 $ 135,540 $ 13,163 Weighted average common shares outstanding – basic 23,515 1,894 23,729 2,561 23,559 2,562 Conversion of Class B common shares into Class A common shares 1,894 — 2,561 — 2,562 — Effect of dilutive stock options on weighted average common shares 112 — 200 — 261 — Weighted average common shares outstanding – diluted 25,521 1,894 26,490 2,561 26,382 2,562 Net income per common share - basic $ 7.76 $ 7.76 $ 6.96 $ 6.96 $ 5.19 $ 5.19 Net income per common share - diluted $ 7.72 $ 7.72 $ 6.91 $ 6.91 $ 5.14 $ 5.14 Antidilutive Securities Shares issuable pursuant to stock options not included since they were antidilutive — — 16 — 13 — |
Note 18 - Equity-method Inves48
Note 18 - Equity-method Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Equity Method Investment, Summarized Financial Information, Balance Sheet [Table Text Block] | December 31, 2016 2015 Carrying value, recorded as a component of other non-current assets $ — $ 22,284 Present value of the obligation associated with future equity contributions, recorded as a component of accrued liabilities and other long-term liabilities — 22,511 |
Equity Method Investment, Summarized Financial Information, Income Statement [Table Text Block] | Year Ended December 31, 2016 2015 2014 Asset impairments to write investment down to fair value $ 13,992 $ 16,521 $ 1,853 Our portion of the partnership’s operating losses 8,262 6,929 1,160 Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions 185 674 152 Tax benefits and credits generated 28,530 30,832 6,506 |
Note 19 - Segments (Tables)
Note 19 - Segments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Notes Tables | |
Schedule of Segment Reporting Information, by Segment [Table Text Block] | Year Ended December 31, 2016 2015 2014 Revenues: Domestic $ 3,381,715 $ 3,038,883 $ 2,569,928 Import 3,764,255 3,330,949 1,889,579 Luxury 1,528,760 1,490,632 926,856 8,674,730 7,860,464 5,386,363 Corporate and other 3,427 3,788 3,963 $ 8,678,157 $ 7,864,252 $ 5,390,326 Segment income*: Domestic $ 106,210 $ 115,145 $ 96,608 Import 110,204 98,751 51,150 Luxury 31,467 36,391 25,448 247,881 250,287 173,206 Corporate and other 114,321 74,514 71,195 Depreciation and amortization (49,369 ) (41,600 ) (26,363 ) Other interest expense (23,207 ) (19,491 ) (10,742 ) Other (expense) income, net (6,103 ) (1,006 ) 3,199 Income from continuing operations before income taxes $ 283,523 $ 262,704 $ 210,495 Year Ended December 31, 2016 2015 2014 Floor plan interest expense: Domestic $ 26,445 $ 21,061 $ 17,895 Import 18,665 14,959 9,397 Luxury 10,999 9,096 5,098 56,109 45,116 32,390 Corporate and other (30,578 ) (25,582 ) (18,529 ) $ 25,531 $ 19,534 $ 13,861 |
Reconciliation of Assets from Segment to Consolidated [Table Text Block] | December 31, 2016 2015 Total assets: Domestic $ 1,225,387 $ 993,426 Import 959,355 716,959 Luxury 511,779 475,305 Corporate and other 1,147,629 1,039,440 $ 3,844,150 $ 3,225,130 |
Note 1 - Summary of Significa50
Note 1 - Summary of Significant Accounting Policies (Details Textual) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Number of New Vehicle Brands | 30 | ||
Number of Stores | 154 | ||
Interest Costs Capitalized | $ 0.4 | $ 0.5 | $ 0.4 |
Number of Financial Institutions | 18 | ||
Number of Manufacturer Affiliated Finance Companies | 8 | ||
Long-term Debt, Percentage Bearing Variable Interest, Amount | $ 2,100 | ||
Standard and Extended Product Warranty Accrual | $ 0.4 | $ 0.5 | |
Number of Reportable Segments | 3 | ||
Minimum [Member] | |||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 2.02% | ||
Maximum [Member] | |||
Long-term Debt, Percentage Bearing Variable Interest, Percentage Rate | 3.25% |
Note 1 - Summary of Significa51
Note 1 - Summary of Significant Accounting Policies - Property and Equipment Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Building and Building Improvements [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Building and Building Improvements [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 40 years |
Equipment [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 5 years |
Equipment [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 15 years |
Furniture and Fixtures [Member] | Minimum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 3 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment, Useful Life (Year) | 10 years |
Note 1 - Summary of Significa52
Note 1 - Summary of Significant Accounting Policies - Advertising Expense and Manufacturing Cooperative Advertising Credits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Advertising expense, gross | $ 101,656 | $ 89,736 | $ 62,933 |
Manufacturer cooperative advertising credits | (20,293) | (19,801) | (16,281) |
Advertising expense, net | $ 81,363 | $ 69,935 | $ 46,652 |
Note 2 - Accounts Receivable -
Note 2 - Accounts Receivable - Summary of Accounts Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts receivable gross | $ 473,300 | $ 343,417 |
Less: Allowance for doubtful accounts | (5,281) | (2,243) |
Less: Long-term portion of accounts receivable, net | (50,305) | (32,712) |
Total accounts receivable, net | 417,714 | 308,462 |
Contracts in Transit [Member] | ||
Accounts receivable gross | 233,506 | 168,460 |
Trade Accounts Receivable [Member] | ||
Accounts receivable gross | 47,450 | 33,749 |
Vehicle Receivables [Member] | ||
Accounts receivable gross | 43,937 | 36,470 |
Manufacturer Receivables [Member] | ||
Accounts receivable gross | 76,948 | 59,215 |
Auto Loans Receivables [Member] | ||
Accounts receivable gross | 69,859 | 42,490 |
Other Receivables [Member] | ||
Accounts receivable gross | $ 1,600 | $ 3,033 |
Note 3 - Inventories (Details T
Note 3 - Inventories (Details Textual) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory Adjustments | $ 18.1 | $ 13.6 |
Note 3 - Inventories - Summary
Note 3 - Inventories - Summary of Inventories (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Inventories, net | $ 1,772,587 | $ 1,470,987 |
New Vehicle [Member] | ||
Inventories, net | 1,338,110 | 1,113,613 |
Used Vehicle [Member] | ||
Inventories, net | 368,067 | 302,911 |
Parts and Accessories [Member] | ||
Inventories, net | $ 66,410 | $ 54,463 |
Note 4 - Property and Equipme56
Note 4 - Property and Equipment (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2015USD ($) | |
Impairment of Long-Lived Assets Held-for-use | $ 3.6 |
Note 4 - Property and Equipme57
Note 4 - Property and Equipment - Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, plant and equipment, gross | $ 1,152,831 | $ 999,336 |
Less accumulated depreciation | (167,300) | (137,853) |
Property, plant and equipment, net | 1,006,130 | 876,660 |
Land [Member] | ||
Property, plant and equipment, gross | 318,832 | 281,982 |
Building and Building Improvements [Member] | ||
Property, plant and equipment, gross | 611,798 | 527,545 |
Equipment [Member] | ||
Property, plant and equipment, gross | 80,953 | 70,559 |
Furniture and Fixtures [Member] | ||
Property, plant and equipment, gross | 141,248 | 119,250 |
Excluding Construction in Progress [Member] | ||
Property, plant and equipment, net | 985,531 | 861,483 |
Construction in Progress [Member] | ||
Property, plant and equipment, net | $ 20,599 | $ 15,177 |
Note 5 - Goodwill and Franchi58
Note 5 - Goodwill and Franchise Value (Details Textual) $ in Millions | Dec. 31, 2008USD ($) |
Goodwill, Impaired, Accumulated Impairment Loss | $ 299.3 |
Note 5 - Goodwill and Franchi59
Note 5 - Goodwill and Franchise Value - Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Balance | [1] | $ 213,220 | $ 199,375 |
Additions through acquisitions | 47,397 | 14,091 | |
Reductions through divestitures | (1,218) | (246) | |
Balance | [1] | 259,399 | 213,220 |
Domestic [Member] | |||
Balance | [1] | 97,903 | 91,011 |
Additions through acquisitions | 18,154 | 6,892 | |
Reductions through divestitures | (1,218) | ||
Balance | [1] | 114,839 | 97,903 |
Import [Member] | |||
Balance | [1] | 84,384 | 79,601 |
Additions through acquisitions | 21,795 | 5,029 | |
Reductions through divestitures | (246) | ||
Balance | [1] | 106,179 | 84,384 |
Luxury [Member] | |||
Balance | [1] | 30,933 | 28,763 |
Additions through acquisitions | 7,448 | 2,170 | |
Reductions through divestitures | |||
Balance | [1] | $ 38,381 | $ 30,933 |
[1] | Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008. |
Note 5 - Goodwill and Franchi60
Note 5 - Goodwill and Franchise Value - Franchise Value (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ 157,699 | $ 150,892 |
Additions through acquisitions | 27,087 | 6,843 |
Reductions through divestitures | (518) | (36) |
Balance | $ 184,268 | $ 157,699 |
Note 6 - Credit Facilities an61
Note 6 - Credit Facilities and Long-term Debt (Details Textual) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
New Accounting Pronouncement or Change in Accounting Principle, Cumulative Effect of Change on Equity or Net Assets | $ 2,200 | |
Number of Financial Institutions | 18 | |
Number of Manufacturer Affiliated Finance Companies | 8 | |
Principal Reduction Accounts Maximum Deposit Amount | $ 50,000 | |
Floor Plan Notes Payable | 94,602 | 48,083 |
Long-term Debt | 439,558 | |
Principal Reduction Accounts Outstanding Amount | $ 0 | |
Mortgages [Member] | ||
Percent of Total Mortgage Debt that is Fixed | 64.30% | |
Other 1 [Member] | ||
Long-term Debt | $ 11,200 | |
Minimum [Member] | Mortgages [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 2.10% | |
Minimum [Member] | Other 1 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 4.30% | |
Maximum [Member] | Mortgages [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 5.00% | |
Maximum [Member] | Other 1 [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 9.70% | |
Used Vehicle Inventory Financing [Member] | ||
Line of Credit Facility, Interest Rate During Period | 2.27% | |
Long-term Line of Credit | $ 211,000 | 171,000 |
Used Vehicle Inventory Financing [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |
Revolving Credit Facility [Member] | ||
Line of Credit Facility, Interest Rate During Period | 2.52% | |
Long-term Line of Credit | $ 142,507 | $ 61,246 |
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
Revolving Credit Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.50% | |
New Vehicle Floor Plan [Member] | ||
Reserve Commitment Percent | 95.00% | |
Maximum Reserve Amount if Reserve is Required | $ 15,000 | |
Debt Instrument, Basis Spread on Variable Rate | 1.25% | |
Line of Credit Facility, Interest Rate During Period | 2.02% | |
Other Lines of Credit [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 38,500 | |
Long-term Line of Credit | $ 36,500 | |
Other Lines of Credit [Member] | Maximum [Member] | ||
Line of Credit Facility, Interest Rate During Period | 2.77% | |
Syndicated Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,050,000 | |
Number of Financial Institutions | 18 | |
Number of Manufacturer Affiliated Finance Companies | 8 | |
Line of Credit Facility, Expandable Total Borrowing Capacity, Subject to Lender Approval | $ 2,400,000 | |
Syndicated Credit Facility [Member] | Used Vehicle Inventory Financing [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | 350,000 | |
Syndicated Credit Facility [Member] | Revolving Credit Facility [Member] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 400,000 | |
Floor Plan Notes Payable [Member] | Maximum [Member] | ||
Debt Instrument, Interest Rate, Stated Percentage | 3.25% |
Note 6 - Credit Facilities an62
Note 6 - Credit Facilities and Long-term Debt - Credit Facilities and Long-term Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
New vehicle floor plan commitment | $ 1,506,895 | $ 1,265,872 |
Floor plan notes payable | 94,602 | 48,083 |
Total floor plan debt | 1,601,497 | 1,313,955 |
Real estate mortgages | 428,367 | 387,861 |
Other debt | 11,191 | 25,248 |
Debt issuance costs | (2,184) | (2,169) |
Total debt | 2,392,378 | 1,957,141 |
Used Vehicle Inventory Financing [Member] | ||
Long-term Line of Credit | 211,000 | 171,000 |
Revolving Credit Facility [Member] | ||
Long-term Line of Credit | $ 142,507 | $ 61,246 |
Note 6 - Credit Facilities an63
Note 6 - Credit Facilities and Long-term Debt - Details of Financial Covenants (Details) $ in Millions | Dec. 31, 2016USD ($) |
Current ratio, requirement | 1.1 |
Current ratio | 1.26 |
Fixed charge coverage ratio, requirement | 1.2 |
Fixed charge coverage ratio | 2.63 |
Leverage ratio, requirement | 5 |
Leverage ratio | 2.18 |
Funded debt restriction | $ 900 |
Funded debt | $ 485.2 |
Note 6 - Credit Facilities an64
Note 6 - Credit Facilities and Long-term Debt - Future Principal Payments on Long-term Debt (Details) $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 20,608 |
2,018 | 38,150 |
2,019 | 45,189 |
2,020 | 37,504 |
2,021 | 34,897 |
Thereafter | 263,210 |
Total principal payments | $ 439,558 |
Note 7 - Commitments and Cont65
Note 7 - Commitments and Contingencies (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating Leases, Rent Expense, Minimum Rentals | $ 26,800 | $ 23,800 | $ 17,200 |
Charge Backs Liabilities | 44,228 | ||
Contracts Obligations Reserve | 3,400 | ||
Self Insurance Reserve | 32,800 | $ 25,900 | |
Lifetime Oil Contracts [Member] | |||
Deferred Revenue | $ 99,600 |
Note 7 - Commitments and Cont66
Note 7 - Commitments and Contingencies - Minimum Lease Payments (Details) $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 27,294 |
2,018 | 25,557 |
2,019 | 24,031 |
2,020 | 22,226 |
2,021 | 20,249 |
Thereafter | 132,449 |
Total minimum lease payments | 251,806 |
Less: sublease rentals | (7,777) |
$ 244,029 |
Note 7 - Commitments and Cont67
Note 7 - Commitments and Contingencies - Charge-backs for Various Contracts (Details) $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 24,320 |
2,018 | 12,831 |
2,019 | 5,188 |
2,020 | 1,498 |
2,021 | 320 |
Thereafter | 71 |
Total | $ 44,228 |
Note 7 - Commitments and Cont68
Note 7 - Commitments and Contingencies - Lifetime Lube, Oil and Filter Contracts Acquired (Details) - Lifetime Oil Contracts [Member] $ in Thousands | Dec. 31, 2016USD ($) |
2,017 | $ 19,800 |
2,018 | 15,661 |
2,019 | 12,511 |
2,020 | 10,400 |
2,021 | 8,866 |
Thereafter | 32,402 |
Total | $ 99,640 |
Note 8 - Stockholders' Equity69
Note 8 - Stockholders' Equity (Details Textual) $ / shares in Units, $ in Millions | Jul. 20, 2012shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015shares | Dec. 31, 2014shares | Feb. 29, 2016shares | Aug. 31, 2011shares |
Shares Paid for Tax Withholding for Share Based Compensation | 94,826 | 77,649 | 106,772 | |||
Common Class A [Member] | ||||||
Conversion of Common Stock Shares | 1 | |||||
Common Stock Number of Votes | 1 | |||||
Stock Repurchase Program, Number of Shares Authorized to be Repurchased | 250,000,000 | 2,000,000 | ||||
Stock Repurchase Program, Number of Additional Shares Authorized to be Repurchased | 1,000,000 | |||||
Common Class A [Member] | Restricted Stock Units (RSUs) [Member] | ||||||
Shares Paid for Tax Withholding for Share Based Compensation | 94,826 | |||||
Treasury Stock Acquired, Average Cost Per Share | $ / shares | $ 90.46 | |||||
Adjustments Related to Tax Withholding for Share-based Compensation | $ | $ 8.6 | |||||
Common Class A [Member] | The 2016 Stock Repurchase Authorization [Member] | ||||||
Stock Repurchase Program, Authorized Amount | $ | $ 193.1 | |||||
Common Class B [Member] | ||||||
Percentage of Class B Common to Total Common Stock Subject to Automatic Conversion | 1.00% | |||||
Common Stock Number of Votes | 10 |
Note 8 - Stockholders' Equity -
Note 8 - Stockholders' Equity - Share Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares repurchased in association with tax withholdings on the vesting of RSUs (in shares) | 94,826 | 77,649 | 106,772 |
Common Class A [Member] | |||
Shares repurchased pursuant to repurchase authorizations (in shares) | 1,312,848 | 228,737 | 226,729 |
Average purchase price per share (in dollars per share) | $ 79.50 | $ 107.88 | $ 70.52 |
Total purchase price (in thousands) | $ 104,370 | $ 24,676 | $ 15,990 |
The 2011 Stock Repurchase Authorization [Member] | Common Class A [Member] | |||
Shares repurchased pursuant to repurchase authorizations (in shares) | 599,123 | ||
Average purchase price per share (in dollars per share) | $ 79.21 | ||
Cumulative repurchases, shares (in shares) | 2,327,636 | ||
Cumulative repurchases, average price (in dollars per share) | $ 51.09 | ||
The 2016 Stock Repurchase Authorization [Member] | Common Class A [Member] | |||
Shares repurchased pursuant to repurchase authorizations (in shares) | 713,725 | ||
Average purchase price per share (in dollars per share) | $ 79.74 | ||
Cumulative repurchases, shares (in shares) | 713,725 | ||
Cumulative repurchases, average price (in dollars per share) | $ 79.74 |
Note 8 - Stockholders' Equity71
Note 8 - Stockholders' Equity - Dividends Paid (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | |
Dividend amount per share (in dollars per share) | $ 0.25 | $ 0.25 | $ 0.25 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.20 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.16 | $ 0.13 |
Total amount of dividend | $ 6,308 | $ 6,299 | $ 6,373 | $ 5,151 | $ 5,246 | $ 5,257 | $ 5,266 | $ 4,216 | $ 4,198 | $ 4,174 | $ 4,179 | $ 3,378 |
Note 8 - Stockholders' Equity72
Note 8 - Stockholders' Equity - Reclassification From Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Floor Plan Interest Expense [Member] | |||
Loss on cash flow hedges | $ (219) | $ (449) | $ (488) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | |||
Loss on cash flow hedges, net | (134) | (275) | (301) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Floor Plan Interest Expense [Member] | |||
Loss on cash flow hedges | (219) | (449) | (488) |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Income Tax Provision [Member] | |||
Income tax benefits | $ 85 | $ 174 | $ 187 |
Note 9 - 401(k) Profit Sharin73
Note 9 - 401(k) Profit Sharing, Deferred Compensation and Long-term Incentive Plans (Details Textual) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 5.4 | $ 5.3 | $ 3.2 |
Other Noncurrent Liabilities [Member] | |||
Deferred Compensation Liability, Classified, Noncurrent | $ 23.5 | $ 19.7 | |
Minimum [Member] | |||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 1 year | ||
Maximum [Member] | |||
Deferred Compensation Arrangement with Individual, Requisite Service Period | 7 years |
Note 9 - 401(k) Profit Sharin74
Note 9 - 401(k) Profit Sharing, Deferred Compensation and Long-term Incentive Plans - Compensation Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Compensation expense | $ 1,081 | $ 1,812 | $ 1,877 |
Total discretionary contribution | $ 1,785 | $ 2,249 | $ 2,450 |
Guaranteed annual return | 5.25% | 5.25% | 5.25% |
Note 10 - Stock-based Compens75
Note 10 - Stock-based Compensation (Details Textual) | 12 Months Ended | |
Dec. 31, 2016USD ($)shares | Dec. 31, 2015 | |
The 2009 ESPP [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 1,500,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Amount of Stock Per Employee | $ | $ 25,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Discount from Market Price, Offering Date | 15.00% | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 372,751 | |
Two Thousand Thirteen Stock Incentive Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 3,800,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 1,487,405 | |
Number of Senior Executives Received RSU | 12 | |
Two Thousand Thirteen Stock Incentive Plan [Member] | Restricted Stock [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
Two Thousand Thirteen Stock Incentive Plan [Member] | Time Vesting RSU [Member] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 33,548 | |
Two Thousand Thirteen Stock Incentive Plan [Member] | Performance and Time Vesting RSU's [Member] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 79,034 | |
Two Thousand Thirteen Stock Incentive Plan [Member] | Performance RSU [Member] | ||
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 46,258 | |
Two Thousand Thirteen Stock Incentive Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 4 years | |
Stock Issued During Period, Shares, Restricted Stock Award, Gross | 31,570 | |
Weighted Average Attainment Level for Performance and Time Vesting RSUs | 58.50% | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Stock Options | $ | $ 9,400,000 | |
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 36 days |
Note 10 - Stock-based Compens76
Note 10 - Stock-based Compensation - Summary of 2009 ESPP (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted average per share discount from market value for shares purchased (in dollars per share) | $ 13 | $ 15.89 | $ 11.92 |
The 2009 ESPP [Member] | |||
Shares purchased pursuant to 2009 ESPP (in shares) | 94,909 | ||
Weighted average per share price of shares purchased (in dollars per share) | $ 73.67 | ||
Weighted average per share discount from market value for shares purchased (in dollars per share) | $ 13 | ||
Shares available for purchase pursuant to 2009 ESPP (in shares) | 372,751 |
Note 10 - Stock-based Compens77
Note 10 - Stock-based Compensation - Stock Incentive Plans Activity, Restricted Stock (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2016$ / sharesshares | |
Balance, Shares (in shares) | shares | 411,074 |
Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 59.13 |
Granted, Shares (in shares) | shares | 144,152 |
Granted, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 82.90 |
Vested, Shares (in shares) | shares | (240,433) |
Vested, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 47.45 |
Forfeited, Shares (in shares) | shares | (15,809) |
Forfeited, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 79.34 |
Balance, Shares (in shares) | shares | 298,984 |
Balance, Weighted Average Grant Date Fair Value (in dollars per share) | $ / shares | $ 80.37 |
Note 10 - Stock-based Compens78
Note 10 - Stock-based Compensation - Stock-based Compensation Information (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Per share intrinsic value of non-vested stock granted (in dollars per share) | $ 82.90 | $ 88.74 | $ 68.99 |
Weighted average per share discount from market value for shares purchased (in dollars per share) | $ 13 | $ 15.89 | $ 11.92 |
Total intrinsic value of stock options exercised (in millions) | $ 0.5 | $ 3.1 | |
Fair value of non-vested stock that vested during the period (in millions) | 47.5 | 19.3 | 18.9 |
Tax benefit recognized in Consolidated Statements of Operations (in millions) | 3.8 | 4.2 | 2.6 |
Cash received from options exercised and shares purchased under all share-based arrangements (in millions) | 7 | 6.5 | 4.9 |
Tax deduction realized related to stock options exercised (in millions) | 8.9 | 7.6 | 8.4 |
Selling, General and Administrative Expenses [Member] | |||
Stock-based compensation recognized in Consolidated Statements of Operations, as a component of selling, general and administrative expense (in millions) | $ 11 | $ 11.9 | $ 7.4 |
Note 11 - Derivative Financia79
Note 11 - Derivative Financial Instrument (Details Textual) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash Flow Hedge Gain (Loss) to be Reclassified within Twelve Months | $ 0.5 | $ 0.5 |
Note 11 - Derivate Financial In
Note 11 - Derivate Financial Instruments - Effect of Derivative Instruments on Consolidated Statements of Operations (Details) - Floor Plan Interest Expense [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest Rate Swap Contract, Amount of Gain Recognized in Accumulated OCI (Effective Portion) | $ 233 | $ 599 | $ 505 |
Interest Rate Swap Contract, Amount of Loss Reclassified from Accumulated OCI into Income (Effective Portion) | (219) | (449) | (488) |
Interest Rate Swap Contract, Amount of Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | (352) | (758) | (732) |
Interest Rate Swap Contract, Amount of Gain Recognized in Accumulated OCI (Effective Portion) | 233 | 599 | 505 |
Loss on cash flow hedges | (219) | (449) | (488) |
Interest Rate Swap Contract, Amount of Loss Recognized in Income on Derivative (Ineffective Portion and Amount Excluded from Effectiveness Testing) | $ (352) | $ (758) | $ (732) |
Note 12 - Fair Value Measurem81
Note 12 - Fair Value Measurements (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Asset Impairment Charges | $ 13,992 | $ 20,124 | $ 1,853 |
Equity Method Investments [Member] | |||
Asset Impairment Charges | $ 14,000 | $ 16,500 | $ 1,900 |
Note 12 - Fair Value Measurem82
Note 12 - Fair Value Measurements - Assets and Liabilities Measured at Fair Value (Details) $ in Thousands | Dec. 31, 2015USD ($) |
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 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | |
Equity-method investment | |
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 2 [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 3 [Member] | |
Equity-method investment | 22,284 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Building and Building Improvements [Member] | |
Certain buildings and improvements | $ 6,559 |
Note 12 - Fair Value Measurem83
Note 12 - Fair Value Measurements - Long-term Fixed Interest Rate Debt (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying value | $ 286,660 | $ 297,463 |
Fair value | $ 293,522 | $ 296,961 |
Note 13 - Income Taxes (Details
Note 13 - Income Taxes (Details Textual) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Income Taxes Receivable | $ 2,400 | $ 23,800 |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |
Deferred Tax Assets, Valuation Allowance | $ 227 | $ 5,360 |
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | (5,100) | |
Deferred Tax Assets, Operating Loss Carryforwards, State and Local | 1,500 | |
Unrecognized Tax Benefits, Period Increase (Decrease) | $ 0 |
Note 13 - Income Taxes - Income
Note 13 - Income Taxes - Income Tax Provision (Benefit) From Continuing Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
$ 10,138 | $ 12,341 | $ 13,355 | |
Income tax provision | 86,465 | 79,705 | 74,955 |
Continuing Operations [Member] | |||
Federal | 68,088 | 58,408 | 56,342 |
State | 13,884 | 14,572 | 7,944 |
81,972 | 72,980 | 64,286 | |
Federal | 4,893 | 6,046 | 10,433 |
State | (400) | 679 | 236 |
4,493 | 6,725 | 10,669 | |
Income tax provision | $ 86,465 | $ 79,705 | $ 74,955 |
Note 13 - Income Taxes - Tax Ra
Note 13 - Income Taxes - Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Federal tax provision at statutory rate | $ 99,233 | $ 91,947 | $ 73,673 |
State taxes, net of federal income tax benefit | 10,784 | 9,357 | 6,526 |
Equity investment basis difference | 9,470 | 11,048 | 1,422 |
Non-deductible items | 1,436 | 882 | 1,766 |
Permanent differences related to employee stock purchase program | 139 | 156 | 68 |
Net change in valuation allowance | (5,133) | (3,303) | (4,121) |
General business credits | (27,950) | (29,093) | (4,002) |
Other | (1,514) | (1,289) | (377) |
Income tax provision | $ 86,465 | $ 79,705 | $ 74,955 |
Note 13 - Income Taxes - Deferr
Note 13 - Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deferred tax assets: | ||
Deferred revenue and cancellation reserves | $ 49,332 | $ 39,323 |
Allowances and accruals, including state NOL carryforward amounts | 49,074 | 43,185 |
Interest on derivatives | 206 | |
Credits and other | 1,781 | 2,581 |
Capital loss carryforward | 10,414 | |
Valuation allowance | (227) | (5,360) |
Total deferred tax assets | 99,960 | 90,349 |
Deferred tax liabilities: | ||
Inventories | (22,253) | (21,313) |
Goodwill | (41,107) | (31,258) |
Property and equipment, principally due to differences in depreciation | (93,943) | (84,355) |
Prepaid expenses and other | (1,732) | (6,552) |
Total deferred tax liabilities | (159,035) | (143,478) |
Total | $ (59,075) | $ (53,129) |
Note 13 - Income Taxes - Unreco
Note 13 - Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Balance | $ 1,031 | $ 1,495 |
Decrease related to tax positions taken - prior year | (1,031) | (464) |
Balance | $ 1,031 |
Note 13 - Income Taxes - Open T
Note 13 - Income Taxes - Open Tax Years (Details) | 12 Months Ended |
Dec. 31, 2016 | |
Domestic Tax Authority [Member] | Earliest Tax Year [Member] | |
Open Tax Year | 2,013 |
Domestic Tax Authority [Member] | Latest Tax Year [Member] | |
Open Tax Year | 2,016 |
State and Local Jurisdiction [Member] | Earliest Tax Year [Member] | |
Open Tax Year | 2,012 |
State and Local Jurisdiction [Member] | Latest Tax Year [Member] | |
Open Tax Year | 2,016 |
Note 14 - Acquisitions (Details
Note 14 - Acquisitions (Details Textual) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Business Acquisition, Goodwill, Expected Tax Deductible Amount | $ 47.4 |
Business Combination, Acquisition Related Costs | $ 1 |
Note 14 - Acquisitions - Revenu
Note 14 - Acquisitions - Revenue and Operating Income from Acquisitions (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Revenue | $ 266,160 |
Operating income | $ 1,720 |
Note 14 - Acquisitions - Summar
Note 14 - Acquisitions - Summary of Acquisitions (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Cash paid, net of cash acquired | $ 234,700 | $ 71,615 | $ 659,634 | |
Forgiven outstanding notes receivable | 1,374 | |||
Goodwill | [1] | 259,399 | 213,220 | $ 199,375 |
Acquisitions 2016 [Member] | ||||
Cash paid, net of cash acquired | 234,700 | |||
Property and equipment transferred | 2,637 | |||
Forgiven outstanding notes receivable | ||||
Total | 237,337 | |||
Trade receivables, net | ||||
Inventories | 148,915 | |||
Franchise value | 27,087 | |||
Property and equipment | 75,345 | |||
Other assets | 990 | |||
Floor plan notes payable | (30,134) | |||
Debt and capital lease obligations | (22,813) | |||
Other liabilities | (9,450) | |||
189,940 | ||||
Goodwill | 47,397 | |||
$ 237,337 | ||||
2015 Acquisitions [Member] | ||||
Cash paid, net of cash acquired | 71,615 | |||
Property and equipment transferred | ||||
Forgiven outstanding notes receivable | 1,374 | |||
Total | 72,989 | |||
Trade receivables, net | 36 | |||
Inventories | 34,374 | |||
Franchise value | 6,843 | |||
Property and equipment | 22,118 | |||
Other assets | 224 | |||
Floor plan notes payable | ||||
Debt and capital lease obligations | (2,160) | |||
Other liabilities | (2,537) | |||
58,898 | ||||
Goodwill | 14,091 | |||
$ 72,989 | ||||
[1] | Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008. |
Note 14 - Acquisitions - Pro Fo
Note 14 - Acquisitions - Pro Forma Summary of All Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Revenue | $ 9,297,452 | $ 8,905,065 |
Income from continuing operations, net of tax | $ 202,639 | $ 189,505 |
Basic income per share from continuing operations, net of tax (in dollars per share) | $ 7.98 | $ 7.21 |
Diluted income per share from continuing operations, net of tax (in dollars per share) | $ 7.94 | $ 7.15 |
Note 15 - Discontinued Operat94
Note 15 - Discontinued Operations and Assets and Related Liabilities Held for Sale (Details Textual) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Number of Stores | 154 | ||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 5,744 | ||
Goodwill and Other Intangible Assets [Member] | |||
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax | $ 6,800 | ||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||
Number of Stores | 1 |
Note 15 - Discontinued Operat95
Note 15 - Discontinued Operations and Assets and Related Liabilities Held for Sale - Financial Information of Discontinued Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Floor plan interest | $ 25,531 | $ 19,534 | $ 13,861 |
Other interest | 23,207 | 19,491 | 10,742 |
Revenue | 12,569 | ||
Pre-tax loss from discontinued operations | (467) | ||
Net gain on disposal activities | 5,744 | ||
5,277 | |||
Income tax expense | (2,097) | ||
Income from discontinued operations, net of income tax expense | 3,180 | ||
Goodwill and other intangible assets disposed of | 211 | ||
Discontinued Operations [Member] | |||
Floor plan interest | 32 | ||
Other interest | 8 | ||
Total interest | $ 40 |
Note 16 - Related Party Trans96
Note 16 - Related Party Transactions (Details Textual) - Executive Chairman [Member] - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2016 | |
Related Party Transaction, Selling, General and Administrative Expenses from Transactions with Related Party | $ 18.3 | |
Accrued Liabilities and Other Long Term Liabilities [Member] | ||
Due to Related Parties | $ 17.3 |
Note 17 - Net Income Per Shar97
Note 17 - 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 | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Shares used in basic per share calculations (in shares) | 25,409 | 26,290 | 26,121 |
Shares used in diluted per share calculations (in shares) | 25,521 | 26,490 | 26,382 |
Basic net income per share (in dollars per share) | $ 7.76 | $ 6.96 | $ 5.31 |
Diluted net income per share (in dollars per share) | $ 7.72 | $ 6.91 | $ 5.26 |
Common Class A [Member] | |||
Net income applicable to common stockholders - basic | $ 182,369 | $ 165,172 | $ 122,246 |
Reallocation of distributed net income as a result of conversion of dilutive stock options | 8 | 15 | 15 |
Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding | 1,791 | 1,932 | 1,547 |
Conversion of Class B common shares into Class A common shares | 12,833 | 15,760 | 11,616 |
Effect of dilutive stock options on net income | 57 | 120 | 116 |
Net income applicable to common stockholders - diluted | $ 197,058 | $ 182,999 | $ 135,540 |
Shares used in basic per share calculations (in shares) | 23,515 | 23,729 | 23,559 |
Conversion of Class B common shares into Class A common shares (in shares) | 1,894 | 2,561 | 2,562 |
Effect of dilutive stock options on weighted average common shares (in shares) | 112 | 200 | 261 |
Shares used in diluted per share calculations (in shares) | 25,521 | 26,490 | 26,382 |
Basic net income per share (in dollars per share) | $ 7.76 | $ 6.96 | $ 5.19 |
Diluted net income per share (in dollars per share) | $ 7.72 | $ 6.91 | $ 5.14 |
Common Class A [Member] | Employee Stock Option [Member] | |||
Shares issuable pursuant to stock options not included since they were antidilutive (in shares) | 16 | 13 | |
Common Class B [Member] | |||
Net income applicable to common stockholders - basic | $ 14,689 | $ 17,827 | $ 13,294 |
Reallocation of distributed net income as a result of conversion of dilutive stock options | (8) | (15) | (15) |
Reallocation of distributed net income due to conversion of Class B to Class A common shares outstanding | |||
Conversion of Class B common shares into Class A common shares | |||
Effect of dilutive stock options on net income | (57) | (120) | (116) |
Net income applicable to common stockholders - diluted | $ 14,624 | $ 17,692 | $ 13,163 |
Shares used in basic per share calculations (in shares) | 1,894 | 2,561 | 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) | 1,894 | 2,561 | 2,562 |
Basic net income per share (in dollars per share) | $ 7.76 | $ 6.96 | $ 5.19 |
Diluted net income per share (in dollars per share) | $ 7.72 | $ 6.91 | $ 5.14 |
Common Class B [Member] | Employee Stock Option [Member] | |||
Shares issuable pursuant to stock options not included since they were antidilutive (in shares) |
Note 18 - Equity-method Inves98
Note 18 - Equity-method Investments (Details Textual) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |
Oct. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | |
Equity Method Investment Equity Contribution Obligation | $ 22,511 | ||
NMTC Program [Member] | |||
Equity Method Investment, Ownership Percentage | 99.90% | ||
Payments to Acquire Equity Method Investments | $ 4,100 | $ 22,800 | $ 22,800 |
Equity Method Investment Equity Contribution Obligation | $ 49,800 | ||
Equity Method Investment Equity Contribution Obligation Term | 2 years |
Note 18 - Equity-method Inves99
Note 18 - Equity-method Investment - Equity-method Investment Recorded in Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Present value of the obligation associated with future equity contributions, recorded as a component of accrued liabilities and other long-term liabilities | $ 22,511 | |
Other Noncurrent Assets [Member] | ||
Carrying value, recorded as a component of other non-current assets | $ 22,284 |
Note 18 - Equity-method Inve100
Note 18 - Equity-method Investment - Equity-method Investment Recorded in Consolidated Statements of Operations (Details) - NMTC Program [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Asset impairments to write investment down to fair value | $ 13,992 | $ 16,521 | $ 1,853 |
Our portion of the partnership’s operating losses | 8,262 | 6,929 | 1,160 |
Non-cash interest expense related to the amortization of the discounted fair value of future equity contributions | 185 | 674 | 152 |
Tax benefits and credits generated | $ 28,530 | $ 30,832 | $ 6,506 |
Note 19 - Segments - Certain Se
Note 19 - Segments - Certain Segment Financial Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Total revenues | $ 8,678,157 | $ 7,864,252 | $ 5,390,326 | |
Income from continuing operations before income taxes | 283,523 | 262,704 | 210,495 | |
Depreciation and amortization | (49,369) | (41,600) | (26,363) | |
Other interest expense | (23,207) | (19,491) | (10,742) | |
Other (expense) income, net | (6,103) | (1,006) | 3,199 | |
Floor plan interest expense: | ||||
Floor plan interest | 25,531 | 19,534 | 13,861 | |
Operating Segments [Member] | ||||
Total revenues | 8,674,730 | 7,860,464 | 5,386,363 | |
Income from continuing operations before income taxes | [1] | 247,881 | 250,287 | 173,206 |
Floor plan interest expense: | ||||
Floor plan interest | 56,109 | 45,116 | 32,390 | |
Operating Segments [Member] | Domestic [Member] | ||||
Total revenues | 3,381,715 | 3,038,883 | 2,569,928 | |
Income from continuing operations before income taxes | [1] | 106,210 | 115,145 | 96,608 |
Floor plan interest expense: | ||||
Floor plan interest | 26,445 | 21,061 | 17,895 | |
Operating Segments [Member] | Import [Member] | ||||
Total revenues | 3,764,255 | 3,330,949 | 1,889,579 | |
Income from continuing operations before income taxes | [1] | 110,204 | 98,751 | 51,150 |
Floor plan interest expense: | ||||
Floor plan interest | 18,665 | 14,959 | 9,397 | |
Operating Segments [Member] | Luxury [Member] | ||||
Total revenues | 1,528,760 | 1,490,632 | 926,856 | |
Income from continuing operations before income taxes | [1] | 31,467 | 36,391 | 25,448 |
Floor plan interest expense: | ||||
Floor plan interest | 10,999 | 9,096 | 5,098 | |
Corporate, Non-Segment [Member] | ||||
Total revenues | 3,427 | 3,788 | 3,963 | |
Income from continuing operations before income taxes | [1] | 114,321 | 74,514 | 71,195 |
Floor plan interest expense: | ||||
Floor plan interest | $ (30,578) | $ (25,582) | $ (18,529) | |
[1] | Segment income for each of the segments is defined as Income from continuing operations before income taxes, depreciation and amortization, other interest expense and other (expense) income, net. |
Note 19 - Segments - Segment As
Note 19 - Segments - Segment Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Total Assets | $ 3,844,150 | $ 3,225,130 |
Operating Segments [Member] | Domestic [Member] | ||
Total Assets | 1,225,387 | 993,426 |
Operating Segments [Member] | Import [Member] | ||
Total Assets | 959,355 | 716,959 |
Operating Segments [Member] | Luxury [Member] | ||
Total Assets | 511,779 | 475,305 |
Operating Segments [Member] | Corporate and Other [Member] | ||
Total Assets | $ 1,147,629 | $ 1,039,440 |
Note 21 - Subsequent Events (De
Note 21 - Subsequent Events (Details Textual) - USD ($) $ / shares in Units, $ in Millions | Feb. 23, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Common Stock, Dividends, Per Share, Declared | $ 0.95 | $ 0.76 | $ 0.61 | |
Subsequent Event [Member] | ||||
Common Stock, Dividends, Per Share, Declared | $ 0.25 | |||
Dividends Payable, Current | $ 6.3 |