Cover
Cover - shares | 3 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-13461 | |
Entity Registrant Name | Group 1 Automotive, Inc | |
Entity Central Index Key | 0001031203 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 76-0506313 | |
Entity Address, Address Line One | 800 Gessner, | |
Entity Address, Address Line Two | Suite 500 | |
Entity Address, City or Town | Houston, | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 77024 | |
City Area Code | 713 | |
Local Phone Number | 647-5700 | |
Title of 12(b) Security | Common stock, par value $0.01 per share | |
Trading Symbol | GPI | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | FY | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity Common Stock, Shares Outstanding | 18,175,569 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 19.2 | $ 23.8 |
Contracts-in-transit and vehicle receivables, net | 115.5 | 253.8 |
Accounts and notes receivable, net | 177.1 | 225.1 |
Inventories, net | 1,992.6 | 1,901.7 |
Prepaid expenses | 82.6 | 96.4 |
Other current assets | 12.3 | 15.5 |
TOTAL CURRENT ASSETS | 2,399.3 | 2,516.3 |
Property and equipment, net of accumulated depreciation of $405.7 and $400.2, respectively | 1,549 | 1,547.1 |
Operating lease assets | 218.7 | 220.1 |
Goodwill | 999.8 | 1,008.3 |
Intangible franchise rights | 251.7 | 253.5 |
Other long-term assets | 22.5 | 24.8 |
TOTAL ASSETS | 5,441.1 | 5,570.2 |
CURRENT LIABILITIES: | ||
Floorplan notes payable — credit facility and other, net of offset account of $82.6 and $106.8, respectively | 1,168.6 | 1,144.4 |
Floorplan notes payable — manufacturer affiliates, net of offset account of $0.2 and $4.1, respectively | 484.9 | 459.9 |
Current maturities of long-term debt | 354.7 | 59.1 |
Current operating lease liabilities | 24.4 | 24.6 |
Accounts payable | 410.7 | 527.5 |
Accrued expenses and other current liabilities | 197.1 | 206.7 |
TOTAL CURRENT LIABILITIES | 2,640.4 | 2,422.3 |
Long-term debt | 1,137.7 | 1,432.1 |
Long-term operating lease liabilities | 208.9 | 210.7 |
Deferred income taxes | 135.8 | 145.7 |
Other long-term liabilities | 102 | 99.2 |
Commitments and Contingencies (Note 12) | ||
STOCKHOLDERS’ EQUITY: | ||
Common stock, $0.01 par value, 50,000,000 shares authorized; 25,448,274 and 25,486,711 shares issued, respectively | 0.3 | 0.3 |
Additional paid-in capital | 287.8 | 295.3 |
Retained earnings | 1,566.7 | 1,542.4 |
Accumulated other comprehensive income (loss) | (206) | (147) |
Treasury stock, at cost; 7,272,601 and 6,858,503 shares, respectively | (474.1) | (435.3) |
TOTAL STOCKHOLDERS’ EQUITY | 1,174.6 | 1,255.7 |
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY | $ 5,441.1 | $ 5,570.2 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Accumulated depreciation | $ 405.7 | $ 400.2 |
Offset account related to floorplan notes payable - credit facility | 82.6 | 106.8 |
Offset account related to floorplan notes payable - manufacturer affiliates | $ 0.2 | $ (4.1) |
Common stock, $0.01 par value, 50,000,000 shares authorized; 25,448,274 and 25,486,711 shares issued, respectively | ||
Par value (in dollars per share) | $ 0.01 | $ 0.01 |
Shares authorized (in shares) | 50,000,000 | 50,000,000 |
Shares issued (in shares) | 25,448,274 | 25,486,711 |
Treasury stock (in shares) | 7,272,601 | 6,858,503 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
REVENUES | $ 2,690.8 | $ 2,808.4 |
COST OF SALES | 2,274.3 | 2,376.9 |
GROSS PROFIT | 416.5 | 431.5 |
Selling, general and administrative expenses | 328 | 327.7 |
Depreciation and amortization expense | 18.6 | 17 |
INCOME (LOSS) FROM OPERATIONS | 69.9 | 86.8 |
INTEREST EXPENSE: | ||
Floorplan interest expense | 12.9 | 15.7 |
Other interest expense, net | 18.1 | 18.9 |
INCOME (LOSS) BEFORE INCOME TAXES | 38.9 | 52.2 |
(Benefit) provision for income taxes | 9.1 | 13.5 |
NET INCOME (LOSS) | $ 29.8 | $ 38.6 |
BASIC EARNINGS (LOSS) PER SHARE (in dollars per share) | $ 1.62 | $ 2.09 |
Weighted average common shares outstanding (in shares) | 17,763,451 | 17,797,318 |
DILUTED EARNINGS (LOSS) PER SHARE (in dollars per share) | $ 1.61 | $ 2.08 |
Weighted average dilutive common shares outstanding (in shares) | 17,808,261 | 17,849,334 |
New vehicle retail sales | ||
REVENUES | $ 1,342.2 | $ 1,414.5 |
COST OF SALES | 1,279.4 | 1,343.1 |
Used vehicle retail sales | ||
REVENUES | 779 | 819.2 |
COST OF SALES | 736.9 | 771.4 |
Used vehicle wholesale sales | ||
REVENUES | 86.5 | 92.1 |
COST OF SALES | 85.5 | 91.7 |
Parts and service sales | ||
REVENUES | 370.6 | 369.2 |
COST OF SALES | 172.6 | 170.7 |
Finance, insurance and other, net | ||
REVENUES | $ 112.5 | $ 113.4 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
NET INCOME (LOSS) | $ 29.8 | $ 38.6 |
Other comprehensive income (loss), net of taxes: | ||
Foreign currency translation adjustment | (27.9) | 3.6 |
Net unrealized gain (loss) on interest rate risk management activities, net of tax: | ||
Unrealized gain (loss) arising during the period, net of tax benefit (provision) of $9.7 and $1.3, respectively | (31.6) | (4.2) |
Reclassification adjustment for (gain) loss | 0.5 | (0.3) |
Unrealized gain (loss) on interest rate risk management activities, net of tax | (31.1) | (4.6) |
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX | (59) | (1) |
COMPREHENSIVE INCOME (LOSS) | $ (29.3) | $ 37.7 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Tax benefit (provision) of unrealized gain (loss) on interest rate swap | $ (9.7) | $ (1.3) |
Interest Expense | ||
Tax benefit (provision) of reclassification adjustment | $ 0.2 | $ (0.1) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock |
BALANCE (in shares) at Dec. 31, 2018 | 25,494,328 | |||||
BALANCE at Dec. 31, 2018 | $ 1,095,700 | $ 300 | $ 292,800 | $ 1,394,800 | $ (137,800) | $ (454,400) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 38,600 | 38,600 | ||||
Other comprehensive income (loss), net of taxes | (1,000) | (1,000) | ||||
Net issuance of treasury shares to employee stock compensation plans (in shares) | 28,055 | |||||
Net issuance of treasury shares to stock compensation plans | (800) | (11,700) | 10,900 | |||
Stock-based compensation | 6,100 | 6,100 | ||||
Dividends declared | (4,800) | (4,800) | ||||
BALANCE (in shares) at Mar. 31, 2019 | 25,522,383 | |||||
BALANCE at Mar. 31, 2019 | 1,127,700 | $ 300 | 287,100 | 1,422,600 | (138,700) | (443,500) |
BALANCE (in shares) at Dec. 31, 2018 | 25,494,328 | |||||
BALANCE at Dec. 31, 2018 | 1,095,700 | $ 300 | 292,800 | 1,394,800 | (137,800) | (454,400) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 38,600 | |||||
BALANCE (in shares) at Dec. 31, 2019 | 25,486,711 | |||||
BALANCE at Dec. 31, 2019 | 1,255,700 | $ 300 | 295,300 | 1,542,400 | (147,000) | (435,300) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 29,800 | |||||
Other comprehensive income (loss), net of taxes | (59,000) | (59,000) | ||||
Purchases of treasury stock | (48,900) | (48,900) | ||||
Net issuance of treasury shares to employee stock compensation plans (in shares) | (38,436) | |||||
Net issuance of treasury shares to stock compensation plans | (2,500) | (12,700) | 10,200 | |||
Stock-based compensation | 5,100 | 5,100 | ||||
Dividends declared | (5,500) | (5,500) | ||||
BALANCE (in shares) at Mar. 31, 2020 | 25,448,275 | |||||
BALANCE at Mar. 31, 2020 | $ 1,174,600 | $ 300 | $ 287,800 | $ 1,566,700 | $ (206,000) | $ (474,100) |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends paid (in dollars per share) | $ 0.30 | $ 0.26 |
Condensed Consolidated Statem_6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income (loss) | $ 29.8 | $ 38.6 |
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 18.6 | 17 |
Change in operating lease assets | 6.4 | 7.6 |
Deferred income taxes | (0.4) | 4.1 |
Stock-based compensation | 5.1 | 6.1 |
Amortization of debt discount and issue costs | 1 | 0.9 |
(Gain) loss on disposition of assets | 0 | (5.8) |
Other | 0.4 | 0.2 |
Changes in assets and liabilities, net of acquisitions and dispositions: | ||
Accounts payable and accrued expenses | (98.1) | 101.6 |
Accounts and notes receivable | 41.6 | 9.2 |
Inventories | (125.7) | (28.1) |
Contracts-in-transit and vehicle receivables | 135.2 | 5.1 |
Prepaid expenses and other assets | 1.8 | (17.7) |
Floorplan notes payable — manufacturer affiliates | 35.9 | (2.5) |
Deferred revenues | (0.2) | (0.2) |
Operating lease liabilities | (7.3) | (8.4) |
Net cash provided by (used in) operating activities | 44.1 | 127.9 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Proceeds from disposition of franchises, property and equipment | 0.5 | 35.1 |
Purchases of property and equipment | (31.6) | (41.7) |
Other | 0 | (0.2) |
Net cash provided by (used in) investing activities | (31.1) | (6.8) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Borrowings on credit facility — floorplan line and other | 1,691.6 | 1,631.5 |
Repayments on credit facility — floorplan line and other | (1,665.6) | (1,697.5) |
Borrowings on credit facility — acquisition line | 30 | 107.8 |
Repayments on credit facility — acquisition line | (30) | (111.5) |
Debt issue costs | (0.1) | 0 |
Borrowings on other debt | 27.3 | 20.3 |
Principal payments on other debt | (26) | (26.7) |
Borrowings on debt related to real estate | 18.9 | 0 |
Principal payments on debt related to real estate | (7.6) | (20.9) |
Proceeds from employee stock purchase plan | 2.5 | 2.1 |
Payment of tax withholding for stock-based awards | (5) | (2.9) |
Repurchases of common stock, amounts based on settlement date | (48.9) | 0 |
Dividends paid | (5.5) | (4.8) |
Net cash provided by (used in) financing activities | (18.5) | (102.5) |
Effect of exchange rate changes on cash | (3.4) | (0.5) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (8.9) | 18.1 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, beginning of period | 28.1 | 18.7 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, end of period | $ 19.2 | $ 28.1 |
Interim Financial Information
Interim Financial Information | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
INTERIM FINANCIAL INFORMATION | INTERIM FINANCIAL INFORMATION Business Group 1 Automotive, Inc., a Delaware corporation, is a leading operator in the automotive retailing industry with business activities in 15 states in the U.S., 33 towns in the U.K. and three states in Brazil. Group 1 Automotive, Inc. and its subsidiaries are collectively referred to as the “Company” in these Notes to Condensed Consolidated Financial Statements. The Company, through its regions, sells new and used cars and light trucks; arranges related vehicle financing; sells service and insurance contracts; provides automotive maintenance and repair services; and sells vehicle parts. As of March 31, 2020 , the Company’s retail network consisted of 119 dealerships in the U.S., 50 dealerships in the U.K. and 17 dealerships in Brazil. The U.S. and Brazil are led by the President, U.S. and Brazilian Operations, and the U.K. is led by a Managing Director, each reporting directly to the Company's Chief Executive Officer. The President, U.S. and Brazilian Operations, and the U.K. Managing Director are responsible for the overall performance of their respective regions, as well as for overseeing field level management. The Company’s operating results are generally subject to seasonal variations, as well as changes in the economic environment. In the U.S., the Company generally experiences higher volumes of vehicle sales and service in the second and third calendar quarters of each year. In addition, in some regions of the U.S., vehicle purchases decline during the winter months due to inclement weather. In the U.K., the first and third quarters tend to be stronger, driven by the vehicle license plate change months of March and September. In Brazil, the first quarter is generally the weakest, driven by more consumer vacations and activities associated with Carnival, while the third and fourth quarters tend to be stronger. Other factors unrelated to seasonality, such as changes in economic conditions, manufacturer incentive programs, supply issues, seasonal weather events and/or changes in currency exchange rates may exaggerate seasonal or cause counter-seasonal fluctuations in the Company’s revenues and operating income. COVID-19 Pandemic Since emerging in December 2019, the COVID-19 pandemic has spread globally, including to all of the Company’s markets in the U.S., U.K. and Brazil, significantly impacting the Company’s operating results starting in March. On March 11, 2020, the WHO declared COVID-19 a pandemic, and subsequently, various countries including the U.S., U.K. and Brazil declared the COVID-19 pandemic a national emergency. Along with these declarations, there have been extraordinary and wide-ranging actions taken by international, federal, state and local public health and governmental authorities to contain and combat the outbreak and spread of the COVID-19 pandemic in regions across the world, including mandates for many individuals to substantially restrict daily activities and for many businesses to curtail or cease normal operations. Beginning in mid-March, these measures have either completely shut down or significantly reduced operating capacity of all of the Company’s dealerships in the U.S., the U.K. and Brazil. The length of the stay-at-home orders, travel restrictions and other restrictions on operating businesses and resulting economic impacts are uncertain. To date, these measures have significantly reduced the Company’s new and used vehicle sales volumes, parts and service revenues and F&I revenues, as well as impacted the Company’s vehicle and parts supply chain. During the three months ended March 31, 2020, the Company incurred certain incremental charges as a result of the COVID-19 pandemic, which included one-time employee termination benefits associated with severance of $0.9 million recorded in Selling, general and administrative expenses, additional used vehicle inventory reserves of $4.8 million as a result of the adjustment to lower of specific cost or net realizable value and additional allowance for doubtful accounts reserves of $0.4 million as further described in Note 7 “Receivables and Contract Assets, Net.” The Company also performed an interim impairment assessment of goodwill and intangible franchise rights and concluded that it was not more-likely-than-not that the Company’s goodwill and intangible franchise rights were impaired as of March 31, 2020. Refer to Note 8 “Intangibles” for additional discussion of the Company’s interim impairment assessment. The anticipated effects of the COVID-19 pandemic should not materially impact the Company’s estimated effective tax rate for the full-year of 2020. As the potential impact from the COVID-19 pandemic is difficult to predict, the extent to which it may negatively affect the Company’s future operating results or the duration of any potential business disruption is uncertain. Any potential impact will depend on future developments and new information that may emerge regarding the severity and duration of the COVID-19 pandemic and the actions taken by authorities to contain it or treat its impact, all of which are beyond the Company’s control. These potential impacts, while uncertain, could adversely affect the Company’s business, financial condition and results of operations and could also exacerbate the risks identified in the risk factors listed in this Form 10-Q. Basis of Presentation The accompanying Condensed Consolidated Financial Statements and notes thereto, have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the rules and regulations of the SEC. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. Results for interim periods are not necessarily indicative of the results that can be expected for a full year and therefore should be read in conjunction with the Company’s audited Financial Statements and notes thereto included within the Company’s most recent Annual Report on Form 10-K. The accompanying Condensed Consolidated Financial Statements reflect the consolidated accounts of the parent company, Group 1 Automotive, Inc., and its subsidiaries, all of which are wholly owned. The results of operations of all business combinations completed during the period are included from the effective dates of the closings of the acquisitions. All intercompany balances and transactions have been eliminated in consolidation. Certain prior-period amounts have been reclassified to conform to current-period presentation. Specifically, the long-term liabilities associated with the Company’s interest rate swaps have been reclassified from the caption Other long-term liabilities to the caption Long-term interest rate swap liabilities in the Condensed Consolidated Balance Sheets. This reclassification had no effect on any subtotal in the Condensed Consolidated Balance Sheets. Certain disclosures are reported as zero balances, or may not compute, due to rounding. These Condensed Consolidated Financial Statements reflect, in the opinion of management, all normal recurring adjustments necessary to fairly state, in all material respects, the Company’s financial position and results of operations for the periods presented. Use of Estimates The preparation of the Company’s financial statements in conformity with U.S. GAAP requires management to make certain estimates and assumptions. These estimates and assumptions affect the reported amounts of assets and liabilities, the disclosures of contingent assets and liabilities at the balance sheet date and the amounts of revenues and expenses recognized during the reporting period. Management analyzes the Company’s estimates based on historical experience and other assumptions that are believed to be reasonable under the circumstances; however, actual results could differ materially from such estimates. Significant estimates made in the accompanying Condensed Consolidated Financial Statements include, but are not limited to, inventory valuation adjustments, reserves for future chargebacks on finance, insurance and vehicle service contract fees, self-insured property and casualty insurance exposure, the fair value of assets acquired and liabilities assumed in business combinations, the valuation of goodwill and intangible franchise rights and reserves for potential litigation. Additionally, while the full impact of the COVID-19 pandemic is unknown and cannot be reasonably estimated, the Company has made accounting estimates based on the facts and circumstances available as of the reporting date. Recent Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting |
Revenues
Revenues | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
REVENUES | REVENUES The following tables present the Company’s revenues disaggregated by revenue source and geographical segments (in millions): Three Months Ended March 31, 2020 U.S. U.K. Brazil Total REVENUES: New vehicle retail sales $ 988.4 $ 296.3 $ 57.5 $ 1,342.2 Used vehicle retail sales 570.3 188.8 19.9 779.0 Used vehicle wholesale sales 46.8 35.8 3.8 86.5 Total new and used vehicle sales 1,605.5 520.9 81.3 2,207.7 Parts and service sales (1) 304.6 56.4 9.6 370.6 Finance, insurance and other, net (2) 97.4 13.3 1.7 112.5 Total revenues $ 2,007.6 $ 590.7 $ 92.5 $ 2,690.8 Three Months Ended March 31, 2019 U.S. U.K. Brazil Total REVENUES: New vehicle retail sales $ 1,031.7 $ 318.6 $ 64.2 $ 1,414.5 Used vehicle retail sales 594.4 203.6 21.2 819.2 Used vehicle wholesale sales 42.8 45.3 4.1 92.1 Total new and used vehicle sales 1,669.0 567.4 89.4 2,325.8 Parts and service sales (1) 297.6 59.6 12.0 369.2 Finance, insurance and other, net (2) 96.2 15.2 2.0 113.4 Total revenues $ 2,062.8 $ 642.2 $ 103.4 $ 2,808.4 (1) The Company has applied the optional exemption not to disclose revenues related to remaining performance obligations on its maintenance and repair services as the duration of these contracts is less than one year. Revenues from these contracts is recognized upon completion of the services, which occurs over time. (2) Includes variable consideration recognized of $4.0 million and $3.2 million during the three months ended March 31, 2020 and 2019 , respectively, relating to performance obligations satisfied in previous periods on the Company’s retrospective commission income contracts. See Note 7 “Receivables and Contract Assets, Net” for additional information on the Company’s contract assets associated with revenues from the arrangement of financing and sale of service and insurance contracts. |
Acquisitions and Dispositions
Acquisitions and Dispositions | 3 Months Ended |
Mar. 31, 2020 | |
Business Combinations [Abstract] | |
ACQUISITIONS AND DISPOSITIONS | ACQUISITIONS AND DISPOSITIONS Acquisitions The Company accounts for business combinations under the acquisition method of accounting, under which the Company allocates the purchase price to the assets and liabilities assumed based on an estimate of fair value. During the three months ended March 31, 2020 , the Company had no activity related to acquisitions. During the three months ended March 31, 2019 , the Company opened one dealership representing one franchise in the U.S. and one dealership representing one franchise in the U.K. Dispositions During the three months ended March 31, 2020 , the Company had no activity related to dispositions. During the three months ended March 31, 2019 , the Company’s dispositions included three dealerships representing six franchises in the U.S. and one dealership representing one franchise in the U.K. The Company recorded a net pre-tax gain totaling $5.2 million related to these dispositions. The Company’s dispositions generally consist of dealership assets and related real estate. Gains and losses on dispositions are recorded in Selling, general and administrative expenses |
Equity
Equity | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY | <div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-bottom:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;"></font><font style="font-family:inherit;font-size:10pt;font-weight:bold;">EQUITY</font><font style="font-family:inherit;font-size:10pt;"> </font></div><div style="line-height:120%;padding-bottom:8px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-style:italic;font-weight:bold;">Performance Awards</font></div><div style="line-height:120%;padding-bottom:8px;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">During the </font><font style="font-family:inherit;font-size:10pt;">three months ended March 31, 2020</font><font style="font-family:inherit;font-size:10pt;"> under the 2014 Long Term Incentive Plan, the Company granted </font><font style="font-family:inherit;font-size:10pt;">20,992</font><font style="font-family:inherit;font-size:10pt;"> performance awards to certain employees at no cost to the recipient. The weighted average grant date fair value of these awards was </font><font style="font-family:inherit;font-size:10pt;">$103.29</font><font style="font-family:inherit;font-size:10pt;"> per share. The performance awards do not qualify as participating securities. The performance awards contain both performance and market conditions to be evaluated over a </font><font style="font-family:inherit;font-size:10pt;">two</font><font style="font-family:inherit;font-size:10pt;">-year performance period and are subject to vesting over a </font><font style="font-family:inherit;font-size:10pt;">three</font><font style="font-family:inherit;font-size:10pt;">-year service period. Based on the performance criteria, up to </font><font style="font-family:inherit;font-size:10pt;">200%</font><font style="font-family:inherit;font-size:10pt;"> of the granted shares may be earned. Compensation expense for the awards with performance conditions is calculated based on the market price of the Company&#8217;s common stock at the date of grant and the forecasted achievement of such performance conditions and is recognized over the requisite service period. Compensation expense for the awards with market conditions is calculated based upon the fair value of the award on the date of grant and is recognized over the requisite service period. All performance awards remained unvested as of </font><font style="font-family:inherit;font-size:10pt;">March&#160;31, 2020</font><font style="font-family:inherit;font-size:10pt;">.</font></div></div> |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | EARNINGS PER SHARE The two-class method is utilized for the computation of the Company’s EPS. The two-class method requires a portion of net income to be allocated to participating securities, which are unvested awards of share-based payments with non-forfeitable rights to receive dividends. The Company’s RSAs are participating securities. Income allocated to these participating securities is excluded from net earnings available to common shares, as shown in the table below. Basic EPS is computed by dividing net income available to basic common shares by the weighted average number of basic common shares outstanding during the period. Diluted EPS is computed by dividing net income available to diluted common shares by the weighted average number of dilutive common shares outstanding during the period. The following table sets forth the calculation of EPS for the three months ended March 31, 2020 and 2019 (in millions, except share data): Three Months Ended March 31, 2020 2019 Weighted average basic common shares outstanding 17,763,451 17,797,318 Dilutive effect of stock-based awards and employee stock purchases 44,810 52,016 Weighted average dilutive common shares 17,808,261 17,849,334 Basic: Net income (loss) $ 29.8 $ 38.6 Less: Earnings (loss) allocated to participating securities 1.1 1.5 Net income (loss) available to basic common shares $ 28.7 $ 37.2 Basic earnings (loss) per common share $ 1.62 $ 2.09 Diluted: Net income (loss) $ 29.8 $ 38.6 Less: Earnings (loss) allocated to participating securities 1.1 1.5 Net income (loss) available to diluted common shares $ 28.7 $ 37.2 Diluted earnings (loss) per common share $ 1.61 $ 2.08 |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the most advantageous market in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices for identical assets or liabilities in active markets. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or that can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash and Cash Equivalents, Contracts-In-Transit and Vehicle Receivables, Accounts and Notes Receivable, Accounts Payable, Variable Rate Long-Term Debt and Floorplan Notes Payable The fair values of these financial instruments approximate their carrying values due to the short-term nature of these instruments and/or the existence of variable interest rates. Fixed Rate Long-Term Debt The Company’s fixed rate long-term debt primarily consists of amounts outstanding under its senior unsecured notes and certain mortgage facilities. See Note 9 “Debt” for further discussion of the Company’s long-term debt arrangements. The Company estimates the fair value of its 5.00% Senior Notes using quoted prices for the identical liability (Level 1) and estimates the fair value of its fixed-rate mortgage facilities using a present value technique based on current market interest rates for similar types of financial instruments (Level 2). The carrying value and fair value of the Company’s 5.00% Senior Notes and fixed rate mortgages were as follows (in millions): March 31, 2020 December 31, 2019 Carrying Value (1) Fair Value Carrying Value (1) Fair Value 5.00% Senior Notes $ 546.8 $ 510.4 $ 546.4 $ 559.5 Real estate related 39.3 38.9 40.7 41.1 Total $ 586.1 $ 549.3 $ 587.1 $ 600.6 (1) Carrying value includes unamortized discount and excludes debt issuance costs . As described in Note 9 “Debt,” on April 2, 2020, the Company fully redeemed $300.0 million in aggregate principal amount of its outstanding 5.25% Senior Notes due June 2023, at a premium of 102.625% . The total redemption price, consisting of the principal amount of the notes redeemed plus associated premium, amounted to $307.9 million . The redemption price approximated the fair value of the 5.25% Senior Notes as of March 31, 2020. Derivative financial instruments The Company holds interest rate swaps to hedge against variability of interest payments indexed to LIBOR. The interest rate swaps are designated as cash flow hedges and the related gains or losses are deferred in stockholders’ equity as a component of Accumulated other comprehensive income (loss). The deferred gains or losses are recognized in income in the period in which the related items being hedged are recognized in expense. Monthly contractual settlements of the positions are recognized as Floorplan interest expense or Other interest expense, net, in the Company’s Condensed Consolidated Statements of Operations. The Company had no gains or losses related to ineffectiveness recognized in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 . As of March 31, 2020 , the Company held 29 interest rate swaps in effect with a total notional value of $786.2 million that fixed its underlying one-month LIBOR at a weighted average rate of 1.91% . The Company also held 13 additional interest rate swaps with forward start dates beginning April 2020 that had an aggregate notional value of $580.8 million and a weighted average interest rate of 1.60% as of March 31, 2020 . The maturity dates of the Company’s interest rate swaps range between December 2020 and December 2030. The Company’s interest rate swaps are measured at fair value utilizing the option-pricing Black-Scholes present value technique. This technique utilizes a one-month LIBOR forward yield curve matched to the identical maturity term of the instrument being measured. Observable inputs utilized in the income approach valuation technique incorporate identical contractual notional amounts, fixed coupon rates, periodic terms for interest payments and contract maturity. The fair value of the interest rate swaps also considers the credit risk of the Company for instruments in a liability position or the counterparty for instruments in an asset position. The credit risk is calculated using the spread between the one-month LIBOR yield curve and the relevant interest rate according to Standard and Poor’s. The inputs to the fair value measurements reflect level 2 inputs. Assets and liabilities associated with the Company’s interest rate swaps as reflected in the Condensed Consolidated Balance Sheets were as follows (in millions): March 31, 2020 December 31, 2019 Assets from interest rate risk management activities: Other long-term assets $ — $ 1.9 Liabilities from interest rate risk management activities: Accrued expenses and other current liabilities $ 4.4 $ 2.8 Long-term interest rate swap liabilities 41.7 4.4 Total long-term liabilities from interest rate risk management activities $ 46.1 $ 7.2 Included in Accumulated other comprehensive income (loss) as of March 31, 2020 and 2019 , were unrealized gains (losses), net of tax, totaling ($35.2) million and $4.4 million , respectively, related to the Company’s interest rate swaps. The following tables present the impact of the Company’s interest rate swaps (in millions): Amount of Unrealized Income (Loss), Net of Tax, Recognized in Other Comprehensive Income (Loss) Three Months Ended March 31, Derivatives in Cash Flow Hedging Relationship 2020 2019 Interest rate swaps $ (31.6 ) $ (4.2 ) Amount of Income (Loss) Reclassified from Other Comprehensive Income (Loss) into Statements of Operations Location of Income (Loss) Reclassified from Other Comprehensive Income (Loss) into Statements of Operations Three Months Ended March 31, 2020 2019 Floorplan interest expense, net $ (0.6 ) $ 0.3 Other interest expense, net $ (0.1 ) $ 0.1 The net amount of loss expected to be reclassified out of Accumulated other comprehensive income (loss) into earnings as an offset to Floorplan interest expense or Other interest expense, net in the next twelve months is $4.4 million . |
Cash Flow Information
Cash Flow Information | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
CASH FLOW INFORMATION | CASH FLOW INFORMATION Cash, Cash Equivalents and Restricted Cash The total amounts presented on the Company’s Condensed Consolidated Statements of Cash Flows include cash, cash equivalents and restricted cash. As of March 31, 2020, the Company had cash and cash equivalents of $19.2 million and as of December 31, 2019 , the Company had cash and cash equivalents of $23.8 million and restricted cash of $4.3 million included in Other long-term assets . Non-cash Activities The Company had a net increase of $0.7 million and a net decrease of $4.1 million in the accrual for capital expenditures for the three months ended March 31, 2020 and 2019 , respectively. The following table presents ROU assets obtained in exchange for lease obligations (in millions): Three Months Ended March 31, 2020 2019 ROU assets obtained in exchange for lease obligations: Operating leases, initial recognition $ 0.1 $ 4.3 Operating leases, modifications and remeasurements $ 11.9 $ 0.7 Finance leases, initial recognition $ 10.0 $ — Finance leases, modifications and remeasurements $ (1.5 ) $ — Interest and Income Taxes Paid Cash paid for interest, including the monthly settlement of the Company’s interest rate derivatives, was $19.9 million and $21.9 million for the three months ended March 31, 2020 and 2019 , respectively. The Company received a net tax refund of $6.2 million for the three months ended March 31, 2020 . Cash paid for income taxes, net of refunds, was $1.2 million for the three months ended March 31, 2019 . |
Receivables and Contract Assets
Receivables and Contract Assets, Net | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
RECEIVABLE AND CONTRACT ASSETS, NET | RECEIVABLES AND CONTRACT ASSETS, NET The Company’s financial assets measured at amortized cost and the associated allowance for doubtful accounts consisted of the following (in millions): March 31, 2020 December 31, 2019 Contracts-in-transit and vehicle receivables, net Contracts-in-transit $ 67.0 $ 169.9 Vehicle receivables 48.7 84.3 Total contracts-in-transit and vehicle receivables 115.8 254.1 Less: allowance for doubtful accounts (1) 0.3 0.3 Total contracts-in-transit and vehicle receivables, net $ 115.5 $ 253.8 Accounts and notes receivables, net Manufacturer receivables $ 97.5 $ 124.0 Parts and service receivables 51.2 57.0 F&I receivables 19.0 28.3 Other 12.8 18.6 Total accounts and notes receivables 180.5 227.9 Less: allowance for doubtful accounts (1) 3.4 2.8 Total accounts and notes receivables, net $ 177.1 $ 225.1 Within Other current assets and Other long-term assets Total contract assets, net (1), (2) $ 22.7 $ 21.6 (1) The allowance for doubtful accounts as of March 31, 2020 is calculated under the current expected credit loss (“CECL”) model described below, which was introduced under ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”) , that became effective for the Company on January 1, 2020. The adoption of ASC 326 did not materially change the calculation of the allowance for doubtful accounts. (2) No allowance for doubtful accounts was recorded for Contract assets, net as of March 31, 2020 or December 31, 2019. No past due balances existed as of either date, and there were no expected credit losses as of March 31, 2020. The CECL model applies to financial assets measured at amortized cost, as shown in the table above, and requires the Company to reflect expected credit losses over the remaining contractual term of the asset. As the large majority of the Company’s receivables settle within 30 days, the forecast period under the CECL model is a relatively short horizon. The Company uses an aging method to estimate allowances for doubtful accounts under the CECL model as the Company has determined that the aging method adequately reflects expected credit losses, as corroborated by historical loss-rates. However, the Company will apply adjustments for asset-specific factors and current economic conditions as needed at each reporting date. The Company recorded an adjustment of approximately $0.4 million |
Floorplan Notes Payable
Floorplan Notes Payable | 3 Months Ended |
Mar. 31, 2020 | |
Line of Credit Facility [Abstract] | |
FLOORPLAN NOTES PAYABLE | FLOORPLAN NOTES PAYABLE The Company’s floorplan notes payable consisted of the following (in millions): March 31, 2020 December 31, 2019 Revolving credit facility — floorplan notes payable $ 1,207.8 $ 1,206.0 Revolving credit facility — floorplan notes payable offset account (82.6 ) (106.8 ) Revolving credit facility — floorplan notes payable, net 1,125.1 1,099.1 Other non-manufacturer facilities 43.5 45.3 Floorplan notes payable — credit facility and other, net $ 1,168.6 $ 1,144.4 FMCC facility $ 235.5 $ 208.5 FMCC facility offset account (0.2 ) (4.1 ) FMCC facility, net 235.4 204.5 Other manufacturer affiliate facilities 249.5 255.4 Floorplan notes payable — manufacturer affiliates, net $ 484.9 $ 459.9 Floorplan Notes Payable - Credit Facility Revolving Credit Facility In the U.S., the Company has a $1.75 billion revolving syndicated credit arrangement with 22 participating financial institutions that matures on June 27, 2024 (“Revolving Credit Facility”). The Revolving Credit Facility consists of two tranches: (i) a $1.70 billion maximum capacity tranche for U.S. vehicle inventory floorplan financing (“Floorplan Line”) which the outstanding balance, net of offset account discussed below, is reported in Floorplan notes payable - credit facility and other, net ; and (ii) a $349.0 million maximum capacity and $50.0 million minimum capacity tranche (“Acquisition Line”), which is not due until maturity of the Revolving Credit Facility and is therefore classified in Long-term debt - see Note 9 “Debt” for additional discussion. The capacity under these two tranches can be re-designated within the overall $1.75 billion commitment, subject to the aforementioned limits. The Acquisition Line includes a $100 million sub-limit for letters of credit. As of March 31, 2020 and December 31, 2019 , the Company had $20.6 million and $23.6 million , respectively, in outstanding letters of credit. The Floorplan Line bears interest at rates equal to the LIBOR plus 110 basis points for new vehicle inventory and LIBOR plus 140 basis points for used vehicle inventory. The weighted average interest rate on the Floorplan Line was 1.76% as of March 31, 2020 , excluding the impact of the Company’s interest rate derivative instruments. The Acquisition Line bears interest at LIBOR or a LIBOR equivalent plus 100 to 200 basis points, depending on the Company’s total adjusted leverage ratio, on borrowings in U.S. dollars, Euros or British pound sterling. The Floorplan Line requires a commitment fee of 0.15% per annum on the unused portion. Amounts borrowed by the Company under the Floorplan Line for specific vehicle inventory are to be repaid upon the sale of the vehicle financed and in no case is a borrowing for a vehicle to remain outstanding for greater than one year. The Acquisition Line requires a commitment fee ranging from 0.15% to 0.40% per annum, depending on the Company’s total adjusted leverage ratio, based on a minimum commitment of $50.0 million less outstanding borrowings. In conjunction with the Revolving Credit Facility, the Company has $4.5 million of related unamortized debt issuance costs as of March 31, 2020 , which are included in Prepaid expenses and Other long-term assets in the Company’s Condensed Consolidated Balance Sheets and amortized over the term of the facility. Offset accounts Offset accounts consist of immediately available cash used to pay down the Floorplan Line and FMCC Facility, and therefore offset the respective outstanding balances in the Company’s Condensed Consolidated Balance Sheets. The offset accounts are the Company’s primary options for the short-term investment of excess cash. Floorplan Notes Payable - Manufacturer Affiliates FMCC Facility The Company has a $300.0 million floorplan arrangement with FMCC for financing of new Ford vehicles in the U.S. This facility bears interest at a rate of Prime plus 150 basis points minus certain incentives. The interest rate on the FMCC Facility was 4.75% before considering the applicable incentives as of March 31, 2020 . Other Manufacturer Facilities The Company has other credit facilities in the U.S., U.K. and Brazil with financial institutions affiliated with manufacturers for financing of new, used and rental vehicle inventories. As of March 31, 2020 , borrowings outstanding under these facilities totaled $249.5 million , comprised of $109.6 million in the U.S., with annual interest rates ranging from less than 1% to approximately 5% , $126.0 million in the U.K., with annual interest rates ranging from approximately 1% to 4% , and $13.9 million in Brazil, with annual interest rates ranging from approximately 4% to 14% |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
DEBT | DEBT Long-term debt consisted of the following (in millions): March 31, 2020 December 31, 2019 5.00% Senior Notes due June 1, 2022 $ 550.0 $ 550.0 5.25% Senior Notes redeemed April 2, 2020 (1) 300.0 300.0 Acquisition Line 68.1 72.5 Real estate related 455.9 453.3 Finance leases 87.4 83.0 Other 38.4 42.8 Total debt 1,499.8 1,501.7 Less: unamortized discount on 5.00% and 5.25% Notes (5.1 ) (5.6 ) Less: unamortized debt issuance costs (2.3 ) (4.8 ) Less: current maturities (1) (354.7 ) (59.1 ) Long-term debt $ 1,137.7 $ 1,432.1 (1) The Company’s 5.25% Senior Notes were fully redeemed on April 2, 2020 and therefore the debt balance of $297.5 million , net of unamortized discount and debt issuance costs, was included in current maturities as of March 31, 2020. See Subsequent 5.25% Senior Notes Redemption and Debt Refinancing for further discussion. Acquisition Line The proceeds of the Acquisition Line are used for working capital, general corporate and acquisition purposes. As of March 31, 2020 , borrowings under the Acquisition Line, a component of the Revolving Credit Facility (as described in Note 10 , “Floorplan Notes Payable” ), totaled $68.1 million . The average interest rate on this facility was 1.85% during the three months ended March 31, 2020 , representing the applicable rate for borrowings in GBP. Real Estate Related The Company has mortgage loans in the U.S., U.K. and Brazil that are paid in monthly installments. As of March 31, 2020 , borrowings outstanding under these facilities totaled $455.9 million , gross of debt issuance costs, comprised of $366.0 million in the U.S., $78.9 million in the U.K. and $11.0 million in Brazil. Subsequent 5.25% Senior Notes Redemption and Debt Refinancing On April 2, 2020, the Company fully redeemed $300.0 million in aggregate principal amount of its outstanding 5.25% Senior Notes due June 2023, at a premium of 102.625% . The total redemption price, consisting of the principal amount of the notes redeemed plus associated premium, amounted to $307.9 million . The Company recognized a loss on redemption of $10.4 million which included write offs of unamortized discount in the amount of $1.9 million and unamortized premium in the amount of $0.6 million . Additionally, the Company paid accrued interest of $4.6 million . The redemption was funded through a combination of Acquisition Line borrowings, mortgage borrowings and excess cash. Additional mortgage debt will be funded during the second quarter of 2020 to provide supplemental liquidity. From April 1, 2020 through the date of this filing, the Company entered into additional mortgage loans in the U.S. totaling approximately $130 million . |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES From time to time, the Company’s dealerships are named in various types of litigation involving customer claims, employment matters, class action claims, purported class action claims, as well as claims involving the manufacturers of automobiles, contractual disputes and other matters arising in the ordinary course of business. The Company may be involved in legal proceedings or suffer losses that could have a material adverse effect on the Company’s business. In the normal course of business, the Company is required to respond to customer, employee and other third-party complaints. In addition, the manufacturers of the vehicles that the Company sells and services have audit rights allowing them to review the validity of amounts claimed for incentive, rebate or warranty-related items and charge the Company back for amounts determined to be invalid payments under the manufacturers’ programs, subject to the Company’s right to appeal any such decision. Legal Proceedings As of March 31, 2020 , the Company was not party to any legal proceedings that, individually or in the aggregate, are reasonably expected to have a material adverse effect on the Company’s results of operations, financial condition or cash flows, including class action lawsuits. However, the results of current or future matters cannot be predicted with certainty and an unfavorable resolution of one or more of such matters could have a material adverse effect on the Company’s results of operations, financial condition or cash flows. Other Matters The Company has sold a number of dealerships to third parties and as a condition to certain of those dispositions, remains liable for the remaining lease payments of such dealerships in the event of non-payment by the purchaser. Although the Company has no reason to believe that it will be called upon to perform under any such assigned leases, the Company estimates that lessee remaining rental obligations were $38.5 million as of March 31, 2020 . In certain instances, the Company obtains collateral support for the rental obligations that the Company remains obligated upon sale of a dealership to a lessee. Total associated letters of credit issued on behalf of the lessee where the Company is the beneficiary was $6.1 million as of March 31, 2020 . |
Intangibles
Intangibles | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
INTANGIBLES | INTANGIBLES The Company evaluates its intangible assets, consisting entirely of indefinite-lived franchise rights and goodwill, for impairment annually, or more frequently if events or circumstances indicate possible impairment. The Company performs interim reviews of its intangible assets when evidence exists that the carrying value may not be recoverable. As described in Note 1 “Interim Financial Information,” since emerging in December 2019, the COVID-19 pandemic has spread globally, including to all of the Company’s markets in the U.S., U.K. and Brazil, significantly impacting the Company’s operating results starting in March. Measures taken by international, federal, state and local public health and governmental authorities to contain and combat the outbreak and spread of the COVID-19 pandemic have either completely shut down or significantly reduced operating capacity of all of the Company’s dealerships in the U.S., the U.K. and Brazil. The length of the stay-at-home orders, travel restrictions and other restrictions on operating businesses is uncertain. To date, these measures have significantly reduced the Company’s new and used vehicle sales volumes, parts and service revenues and F&I revenues, as well as impacted the Company’s inventory supply chain. During the three months ended March 31, 2020, the Company performed an interim impairment assessment of goodwill and intangible franchise rights to determine if events or changes in circumstances, including the impact of the COVID-19 pandemic, indicated that it was more-likely-than-not that the assets were impaired. This included an initial qualitative assessment of factors potentially indicating a more-likely-than-not impairment. Based on the results of the assessment, it was concluded that it was not more-likely-than-not that the Company’s goodwill and intangible franchise rights were impaired as of March 31, 2020, mainly due to the belief that the impact from the COVID-19 pandemic on the Company’s business is temporary in nature. If the Company’s assumptions around the temporary nature of the impact or strength of recovery change in future periods, this could result in a more-likely-than-not impairment. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) | ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS) Changes in the balances of each component of Accumulated other comprehensive income (loss) were as follows (in millions): Three Months Ended March 31, 2020 Accumulated income (loss) on foreign currency translation Accumulated income (loss) on interest rate swaps Total Balance, December 31, 2019 $ (142.9 ) $ (4.1 ) $ (147.0 ) Other comprehensive income (loss) before reclassifications: Pre-tax (27.9 ) (41.3 ) (69.2 ) Tax effect — 9.7 9.7 Amounts reclassified from accumulated other comprehensive income (loss): Floorplan interest expense (pre-tax) — 0.6 0.6 Other interest expense, net (pre-tax) — 0.1 0.1 Provision (benefit) for income taxes — (0.2 ) (0.2 ) Net current period other comprehensive income (loss) (27.9 ) (31.1 ) (59.0 ) Balance, March 31, 2020 $ (170.8 ) $ (35.2 ) $ (206.0 ) Three Months Ended March 31, 2019 Accumulated income (loss) on foreign currency translation Accumulated income (loss) on interest rate swaps Total Balance, December 31, 2018 $ (146.7 ) $ 8.9 $ (137.8 ) Other comprehensive income (loss) before reclassifications: Pre-tax 3.6 (5.6 ) (1.9 ) Tax effect — 1.3 1.3 Amounts reclassified from accumulated other comprehensive income (loss) to: Floorplan interest expense (pre-tax) — (0.3 ) (0.3 ) Other interest expense (pre-tax) — (0.1 ) (0.1 ) Provision (benefit) for income taxes — 0.1 0.1 Net current period other comprehensive income (loss) 3.6 (4.6 ) (1.0 ) Balance, March 31, 2019 $ (143.1 ) $ 4.4 $ (138.7 ) |
Segment Information
Segment Information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION As of March 31, 2020 , the Company had three reportable segments: the U.S., the U.K. and Brazil. The U.S. and Brazil segments are led by the President, U.S. and Brazilian Operations, and the U.K. segment is led by a Managing Director, each reporting directly to the Company's Chief Executive Officer, who is the Chief Operating Decision Maker. The President, U.S. and Brazilian Operations, and the U.K. Managing Director are responsible for the overall performance of their respective regions, as well as for overseeing field level management. Each of the segments is comprised of retail automotive franchises that sell new and used cars and light trucks; arrange related vehicle financing; sell service insurance contracts; provide automotive maintenance and repair services; and sell vehicle parts. The vast majority of the Company’s corporate activities are associated with the operations of the U.S. segment and therefore the corporate financial results are included within the U.S. segment. Reportable segment revenues and income (loss) before income taxes were as follows for the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 U.S. U.K. Brazil Total Total revenues $ 2,007.6 $ 590.7 $ 92.5 $ 2,690.8 Income (loss) before income taxes (1) $ 42.2 $ (2.7 ) $ (0.6 ) $ 38.9 Three Months Ended March 31, 2019 U.S. U.K. Brazil Total Total revenues $ 2,062.8 $ 642.2 $ 103.4 $ 2,808.4 Income (loss) before income taxes (2) $ 46.4 $ 6.2 $ (0.4 ) $ 52.2 (1) Income (loss) before income taxes for the three months ended March 31, 2020 includes a $ 0.9 million severance expense in the Brazil segment as further described in Note 1 “Interim Financial Information.” (2) Income (loss) before income taxes for the three months ended March 31, 2019 includes a $5.2 million net gain on disposition of real estate and dealership transactions in the U.S. segment, a $2.4 million loss on legal matters in the U.S. and Brazil segments and $2.0 million in expense related to Oklahoma hail storm damages in the U.S. segment. |
Interim Financial Information (
Interim Financial Information (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying Condensed Consolidated Financial Statements and notes thereto, have been prepared in accordance with U.S. GAAP for interim financial information and in accordance with the rules and regulations of the SEC. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. Results for interim periods are not necessarily indicative of the results that can be expected for a full year and therefore should be read in conjunction with the Company’s audited Financial Statements and notes thereto included within the Company’s most recent Annual Report on Form 10-K. The accompanying Condensed Consolidated Financial Statements reflect the consolidated accounts of the parent company, Group 1 Automotive, Inc., and its subsidiaries, all of which are wholly owned. The results of operations of all business combinations completed during the period are included from the effective dates of the closings of the acquisitions. All intercompany balances and transactions have been eliminated in consolidation. Certain prior-period amounts have been reclassified to conform to current-period presentation. Specifically, the long-term liabilities associated with the Company’s interest rate swaps have been reclassified from the caption Other long-term liabilities to the caption Long-term interest rate swap liabilities |
Use of Estimates | Use of Estimates |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Reference Rate Reform In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting . The ASU provides optional expedients and exceptions for companies that have contracts, hedging relationships and other transactions that reference LIBOR or other reference rates expected to be discontinued because of reference rate reform. The optional expedients and exceptions apply during the transition period and are intended to ease the financial reporting burdens mainly related to contract modification accounting, hedge accounting and lease accounting. The transition period is effective as of March 12, 2020 and will apply through December 31, 2022. LIBOR is used as an interest rate “benchmark” in the majority of the Company’s floorplan notes payable, as well as its mortgages, other debt and lease contracts. Additionally, the Company’s derivative instruments are benchmarked to LIBOR. The Company is expecting to adopt the relief described as its arrangements are modified. |
Derivative Instruments and Risk Management Activities | Derivative financial instruments The Company holds interest rate swaps to hedge against variability of interest payments indexed to LIBOR. The interest rate swaps are designated as cash flow hedges and the related gains or losses are deferred in stockholders’ equity as a component of Accumulated other comprehensive income (loss). The deferred gains or losses are recognized in income in the period in which the related items being hedged are recognized in expense. Monthly contractual settlements of the positions are recognized as Floorplan interest expense or Other interest expense, net, |
Fair Value Measurements | Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the most advantageous market in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy that requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value: • Level 1 — Quoted prices for identical assets or liabilities in active markets. • Level 2 — Observable inputs other than Level 1 prices such as quoted prices for similar assets and liabilities; quoted prices in markets that are not active; or model-derived valuations or other inputs that are observable or that can be corroborated by observable market data for substantially the full term of the assets or liabilities. • Level 3 — Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Cash and Cash Equivalents, Contracts-In-Transit and Vehicle Receivables, Accounts and Notes Receivable, Accounts Payable, Variable Rate Long-Term Debt and Floorplan Notes Payable The fair values of these financial instruments approximate their carrying values due to the short-term nature of these instruments and/or the existence of variable interest rates. Fixed Rate Long-Term Debt The Company’s fixed rate long-term debt primarily consists of amounts outstanding under its senior unsecured notes and certain mortgage facilities. See Note 9 “Debt” for further discussion of the Company’s long-term debt arrangements. The Company estimates the fair value of its 5.00% Senior Notes using quoted prices for the identical liability (Level 1) and estimates the fair value of its fixed-rate mortgage facilities using a present value technique based on current market interest rates for similar types of financial instruments (Level 2). The carrying value and fair value of the Company’s 5.00% Senior Notes and fixed rate mortgages were as follows (in millions): March 31, 2020 December 31, 2019 Carrying Value (1) Fair Value Carrying Value (1) Fair Value 5.00% Senior Notes $ 546.8 $ 510.4 $ 546.4 $ 559.5 Real estate related 39.3 38.9 40.7 41.1 Total $ 586.1 $ 549.3 $ 587.1 $ 600.6 (1) Carrying value includes unamortized discount and excludes debt issuance costs |
Revenues (Tables)
Revenues (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenues disaggregated by revenue source and geographical segment | The following tables present the Company’s revenues disaggregated by revenue source and geographical segments (in millions): Three Months Ended March 31, 2020 U.S. U.K. Brazil Total REVENUES: New vehicle retail sales $ 988.4 $ 296.3 $ 57.5 $ 1,342.2 Used vehicle retail sales 570.3 188.8 19.9 779.0 Used vehicle wholesale sales 46.8 35.8 3.8 86.5 Total new and used vehicle sales 1,605.5 520.9 81.3 2,207.7 Parts and service sales (1) 304.6 56.4 9.6 370.6 Finance, insurance and other, net (2) 97.4 13.3 1.7 112.5 Total revenues $ 2,007.6 $ 590.7 $ 92.5 $ 2,690.8 Three Months Ended March 31, 2019 U.S. U.K. Brazil Total REVENUES: New vehicle retail sales $ 1,031.7 $ 318.6 $ 64.2 $ 1,414.5 Used vehicle retail sales 594.4 203.6 21.2 819.2 Used vehicle wholesale sales 42.8 45.3 4.1 92.1 Total new and used vehicle sales 1,669.0 567.4 89.4 2,325.8 Parts and service sales (1) 297.6 59.6 12.0 369.2 Finance, insurance and other, net (2) 96.2 15.2 2.0 113.4 Total revenues $ 2,062.8 $ 642.2 $ 103.4 $ 2,808.4 (1) The Company has applied the optional exemption not to disclose revenues related to remaining performance obligations on its maintenance and repair services as the duration of these contracts is less than one year. Revenues from these contracts is recognized upon completion of the services, which occurs over time. (2) Includes variable consideration recognized of $4.0 million and $3.2 million during the three months ended March 31, 2020 and 2019 , respectively, relating to performance obligations satisfied in previous periods on the Company’s retrospective commission income contracts. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Calculation of EPS | The following table sets forth the calculation of EPS for the three months ended March 31, 2020 and 2019 (in millions, except share data): Three Months Ended March 31, 2020 2019 Weighted average basic common shares outstanding 17,763,451 17,797,318 Dilutive effect of stock-based awards and employee stock purchases 44,810 52,016 Weighted average dilutive common shares 17,808,261 17,849,334 Basic: Net income (loss) $ 29.8 $ 38.6 Less: Earnings (loss) allocated to participating securities 1.1 1.5 Net income (loss) available to basic common shares $ 28.7 $ 37.2 Basic earnings (loss) per common share $ 1.62 $ 2.09 Diluted: Net income (loss) $ 29.8 $ 38.6 Less: Earnings (loss) allocated to participating securities 1.1 1.5 Net income (loss) available to diluted common shares $ 28.7 $ 37.2 Diluted earnings (loss) per common share $ 1.61 $ 2.08 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying value and fair value of the Company’s fixed rate long-term debt | The carrying value and fair value of the Company’s 5.00% Senior Notes and fixed rate mortgages were as follows (in millions): March 31, 2020 December 31, 2019 Carrying Value (1) Fair Value Carrying Value (1) Fair Value 5.00% Senior Notes $ 546.8 $ 510.4 $ 546.4 $ 559.5 Real estate related 39.3 38.9 40.7 41.1 Total $ 586.1 $ 549.3 $ 587.1 $ 600.6 (1) Carrying value includes unamortized discount and excludes debt issuance costs |
Asset and liabilities recorded at fair value | Assets and liabilities associated with the Company’s interest rate swaps as reflected in the Condensed Consolidated Balance Sheets were as follows (in millions): March 31, 2020 December 31, 2019 Assets from interest rate risk management activities: Other long-term assets $ — $ 1.9 Liabilities from interest rate risk management activities: Accrued expenses and other current liabilities $ 4.4 $ 2.8 Long-term interest rate swap liabilities 41.7 4.4 Total long-term liabilities from interest rate risk management activities $ 46.1 $ 7.2 |
Impact of interest rate derivative instruments | The following tables present the impact of the Company’s interest rate swaps (in millions): Amount of Unrealized Income (Loss), Net of Tax, Recognized in Other Comprehensive Income (Loss) Three Months Ended March 31, Derivatives in Cash Flow Hedging Relationship 2020 2019 Interest rate swaps $ (31.6 ) $ (4.2 ) Amount of Income (Loss) Reclassified from Other Comprehensive Income (Loss) into Statements of Operations Location of Income (Loss) Reclassified from Other Comprehensive Income (Loss) into Statements of Operations Three Months Ended March 31, 2020 2019 Floorplan interest expense, net $ (0.6 ) $ 0.3 Other interest expense, net $ (0.1 ) $ 0.1 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Supplemental Cash Flow Elements [Abstract] | |
ROU Assets | The following table presents ROU assets obtained in exchange for lease obligations (in millions): Three Months Ended March 31, 2020 2019 ROU assets obtained in exchange for lease obligations: Operating leases, initial recognition $ 0.1 $ 4.3 Operating leases, modifications and remeasurements $ 11.9 $ 0.7 Finance leases, initial recognition $ 10.0 $ — Finance leases, modifications and remeasurements $ (1.5 ) $ — |
Receivables and Contract Asse_2
Receivables and Contract Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Accounts and notes receivable | The Company’s financial assets measured at amortized cost and the associated allowance for doubtful accounts consisted of the following (in millions): March 31, 2020 December 31, 2019 Contracts-in-transit and vehicle receivables, net Contracts-in-transit $ 67.0 $ 169.9 Vehicle receivables 48.7 84.3 Total contracts-in-transit and vehicle receivables 115.8 254.1 Less: allowance for doubtful accounts (1) 0.3 0.3 Total contracts-in-transit and vehicle receivables, net $ 115.5 $ 253.8 Accounts and notes receivables, net Manufacturer receivables $ 97.5 $ 124.0 Parts and service receivables 51.2 57.0 F&I receivables 19.0 28.3 Other 12.8 18.6 Total accounts and notes receivables 180.5 227.9 Less: allowance for doubtful accounts (1) 3.4 2.8 Total accounts and notes receivables, net $ 177.1 $ 225.1 Within Other current assets and Other long-term assets Total contract assets, net (1), (2) $ 22.7 $ 21.6 (1) The allowance for doubtful accounts as of March 31, 2020 is calculated under the current expected credit loss (“CECL”) model described below, which was introduced under ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (“ASC 326”) , that became effective for the Company on January 1, 2020. The adoption of ASC 326 did not materially change the calculation of the allowance for doubtful accounts. (2) No allowance for doubtful accounts was recorded for Contract assets, net as of March 31, 2020 or December 31, 2019. No past due balances existed as of either date, and there were no expected credit losses as of March 31, 2020. |
Floorplan Notes Payable (Tables
Floorplan Notes Payable (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Line of Credit Facility [Abstract] | |
Schedule of Floorplan Notes Payable | The Company’s floorplan notes payable consisted of the following (in millions): March 31, 2020 December 31, 2019 Revolving credit facility — floorplan notes payable $ 1,207.8 $ 1,206.0 Revolving credit facility — floorplan notes payable offset account (82.6 ) (106.8 ) Revolving credit facility — floorplan notes payable, net 1,125.1 1,099.1 Other non-manufacturer facilities 43.5 45.3 Floorplan notes payable — credit facility and other, net $ 1,168.6 $ 1,144.4 FMCC facility $ 235.5 $ 208.5 FMCC facility offset account (0.2 ) (4.1 ) FMCC facility, net 235.4 204.5 Other manufacturer affiliate facilities 249.5 255.4 Floorplan notes payable — manufacturer affiliates, net $ 484.9 $ 459.9 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Summary of long-term debt | Long-term debt consisted of the following (in millions): March 31, 2020 December 31, 2019 5.00% Senior Notes due June 1, 2022 $ 550.0 $ 550.0 5.25% Senior Notes redeemed April 2, 2020 (1) 300.0 300.0 Acquisition Line 68.1 72.5 Real estate related 455.9 453.3 Finance leases 87.4 83.0 Other 38.4 42.8 Total debt 1,499.8 1,501.7 Less: unamortized discount on 5.00% and 5.25% Notes (5.1 ) (5.6 ) Less: unamortized debt issuance costs (2.3 ) (4.8 ) Less: current maturities (1) (354.7 ) (59.1 ) Long-term debt $ 1,137.7 $ 1,432.1 (1) The Company’s 5.25% Senior Notes were fully redeemed on April 2, 2020 and therefore the debt balance of $297.5 million , net of unamortized discount and debt issuance costs, was included in current maturities as of March 31, 2020. See Subsequent 5.25% Senior Notes Redemption and Debt Refinancing for further discussion. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Changes in the balances of each component of accumulated other comprehensive loss | Changes in the balances of each component of Accumulated other comprehensive income (loss) were as follows (in millions): Three Months Ended March 31, 2020 Accumulated income (loss) on foreign currency translation Accumulated income (loss) on interest rate swaps Total Balance, December 31, 2019 $ (142.9 ) $ (4.1 ) $ (147.0 ) Other comprehensive income (loss) before reclassifications: Pre-tax (27.9 ) (41.3 ) (69.2 ) Tax effect — 9.7 9.7 Amounts reclassified from accumulated other comprehensive income (loss): Floorplan interest expense (pre-tax) — 0.6 0.6 Other interest expense, net (pre-tax) — 0.1 0.1 Provision (benefit) for income taxes — (0.2 ) (0.2 ) Net current period other comprehensive income (loss) (27.9 ) (31.1 ) (59.0 ) Balance, March 31, 2020 $ (170.8 ) $ (35.2 ) $ (206.0 ) Three Months Ended March 31, 2019 Accumulated income (loss) on foreign currency translation Accumulated income (loss) on interest rate swaps Total Balance, December 31, 2018 $ (146.7 ) $ 8.9 $ (137.8 ) Other comprehensive income (loss) before reclassifications: Pre-tax 3.6 (5.6 ) (1.9 ) Tax effect — 1.3 1.3 Amounts reclassified from accumulated other comprehensive income (loss) to: Floorplan interest expense (pre-tax) — (0.3 ) (0.3 ) Other interest expense (pre-tax) — (0.1 ) (0.1 ) Provision (benefit) for income taxes — 0.1 0.1 Net current period other comprehensive income (loss) 3.6 (4.6 ) (1.0 ) Balance, March 31, 2019 $ (143.1 ) $ 4.4 $ (138.7 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Reportable segment information | Reportable segment revenues and income (loss) before income taxes were as follows for the three months ended March 31, 2020 and 2019 (in millions): Three Months Ended March 31, 2020 U.S. U.K. Brazil Total Total revenues $ 2,007.6 $ 590.7 $ 92.5 $ 2,690.8 Income (loss) before income taxes (1) $ 42.2 $ (2.7 ) $ (0.6 ) $ 38.9 Three Months Ended March 31, 2019 U.S. U.K. Brazil Total Total revenues $ 2,062.8 $ 642.2 $ 103.4 $ 2,808.4 Income (loss) before income taxes (2) $ 46.4 $ 6.2 $ (0.4 ) $ 52.2 (1) Income (loss) before income taxes for the three months ended March 31, 2020 includes a $ 0.9 million severance expense in the Brazil segment as further described in Note 1 “Interim Financial Information.” (2) Income (loss) before income taxes for the three months ended March 31, 2019 includes a $5.2 million net gain on disposition of real estate and dealership transactions in the U.S. segment, a $2.4 million loss on legal matters in the U.S. and Brazil segments and $2.0 million in expense related to Oklahoma hail storm damages in the U.S. segment. |
Interim Financial Information -
Interim Financial Information - Business and Organization (Details) | Mar. 31, 2020townstatesstatedealership |
U.S. | |
Business And Organization [Line Items] | |
Number of states in which the entity operates | state | 15 |
Number of dealerships | 119 |
United Kingdom | |
Business And Organization [Line Items] | |
Number of towns in which the entity operates | town | 33 |
Number of dealerships | 50 |
Brazil | |
Business And Organization [Line Items] | |
Number of states in which the entity operates | states | 3 |
Number of dealerships | 17 |
Interim Financial Information_2
Interim Financial Information - COVID-19 Pandemic (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
One-time employee termination benefits associated with severance | $ 0.9 |
Additional used vehicle inventory reserves | 4.8 |
Adjustment to credit losses as result of COVID-19 | $ 0.4 |
Revenues - Revenues Disaggregat
Revenues - Revenues Disaggregated by Revenue Source and Geographical Segment (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 2,690.8 | $ 2,808.4 |
U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,007.6 | 2,062.8 |
U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 590.7 | 642.2 |
Brazil | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 92.5 | 103.4 |
Total new and used vehicle sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 2,207.7 | 2,325.8 |
Total new and used vehicle sales | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,605.5 | 1,669 |
Total new and used vehicle sales | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 520.9 | 567.4 |
Total new and used vehicle sales | Brazil | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 81.3 | 89.4 |
New vehicle retail sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 1,342.2 | 1,414.5 |
New vehicle retail sales | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 988.4 | 1,031.7 |
New vehicle retail sales | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 296.3 | 318.6 |
New vehicle retail sales | Brazil | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 57.5 | 64.2 |
Used vehicle retail sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 779 | 819.2 |
Used vehicle retail sales | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 570.3 | 594.4 |
Used vehicle retail sales | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 188.8 | 203.6 |
Used vehicle retail sales | Brazil | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 19.9 | 21.2 |
Used vehicle wholesale sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 86.5 | 92.1 |
Used vehicle wholesale sales | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 46.8 | 42.8 |
Used vehicle wholesale sales | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 35.8 | 45.3 |
Used vehicle wholesale sales | Brazil | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 3.8 | 4.1 |
Parts and service sales | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 370.6 | 369.2 |
Parts and service sales | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 304.6 | 297.6 |
Parts and service sales | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 56.4 | 59.6 |
Parts and service sales | Brazil | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 9.6 | 12 |
Finance, insurance and other, net | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 112.5 | 113.4 |
Variable consideration recognized relating to performance obligations satisfied in previous period | 4 | 3.2 |
Finance, insurance and other, net | U.S. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 97.4 | 96.2 |
Finance, insurance and other, net | U.K. | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | 13.3 | 15.2 |
Finance, insurance and other, net | Brazil | ||
Disaggregation of Revenue [Line Items] | ||
Revenues | $ 1.7 | $ 2 |
Acquisitions and Dispositions (
Acquisitions and Dispositions (Details) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019franchisedealership | Dec. 31, 2019USD ($)franchisedealership | |
Acquisitions and Dispositions (Textual) [Abstract] | ||
Net gain on dispositions | $ | $ 5.2 | |
U.S. | ||
Acquisitions and Dispositions (Textual) [Abstract] | ||
Number of dealerships opened | dealership | 1 | 3 |
Number of franchises opened | 1 | |
Number of franchises disposed | 6 | |
U.K. | ||
Acquisitions and Dispositions (Textual) [Abstract] | ||
Number of dealerships opened | dealership | 1 | |
Number of franchises opened | 1 | |
Number of dealerships disposed | 1 | |
Number of franchises disposed | 1 |
Equity - Narrative (Details)
Equity - Narrative (Details) - Performance Award - Long Term Incentive Plan | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Stock-based Compensation Plans (Textual) [Abstract] | |
Awards granted to employees (in shares) | shares | 20,992 |
Weighted average grant fair value of awards granted to employees (in dollars per share) | $ / shares | $ 103.29 |
Performance period (in years) | 2 years |
Vesting period (in years) | 3 years |
Percent of granted shares that may be earned (up to) | 200.00% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Basic and Diluted Earnings per share | |||
Weighted average basic common shares outstanding (in shares) | 17,763,451 | 17,797,318 | |
Dilutive effect of employee stock purchases, net of assumed repurchase of treasury stock (in shares) | 44,810 | 52,016 | |
Weighted average dilutive common shares (in shares) | 17,808,261 | 17,849,334 | |
Basic: | |||
Net income (loss) | $ 29.8 | $ 38.6 | $ 38.6 |
Less: Earnings (loss) allocated to participating securities | 1.1 | 1.5 | |
Net income (loss) available to basic common shares | $ 28.7 | $ 37.2 | |
Basic earnings (loss) per common share (in dollars per share) | $ 1.62 | $ 2.09 | |
Diluted: | |||
Net income (loss) | $ 29.8 | $ 38.6 | $ 38.6 |
Less: Earnings (loss) allocated to participating securities | 1.1 | 1.5 | |
Net income (loss) available to diluted common shares | $ 28.7 | $ 37.2 | |
Diluted earnings (loss) per common share (in dollars per share) | $ 1.61 | $ 2.08 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements - Schedule of Long-term Debt Carrying Value and Fair Value (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
5.00% Senior Notes | ||
Debt Instrument [Line Items] | ||
Interest rate (as a percentage) | 5.00% | |
Carrying Value | ||
Debt Instrument [Line Items] | ||
Debt, fair value | $ 586.1 | $ 587.1 |
Carrying Value | 5.00% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, fair value | 546.8 | 546.4 |
Carrying Value | Real estate related | ||
Debt Instrument [Line Items] | ||
Debt, fair value | 39.3 | 40.7 |
Fair Value | ||
Debt Instrument [Line Items] | ||
Debt, fair value | 549.3 | 600.6 |
Fair Value | 5.00% Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt, fair value | 510.4 | 559.5 |
Fair Value | Real estate related | ||
Debt Instrument [Line Items] | ||
Debt, fair value | $ 38.9 | $ 41.1 |
Financial Instruments and Fai_4
Financial Instruments and Fair Value Measurements - Narrative (Details) | Apr. 02, 2020USD ($) | Mar. 31, 2020USD ($)swap | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Gain (loss) related to hedge ineffectiveness | $ 0 | $ 0 | $ 0 | ||
Accumulated unrealized gains (losses), net of income taxes | (35,200,000) | ||||
Stockholders’ equity | 1,174,600,000 | $ 1,127,700,000 | 1,255,700,000 | $ 1,095,700,000 | |
Amount expected to be reclassified from other comprehensive loss into earnings | $ 4,400,000 | ||||
Interest Rate Swaps | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Number of additional forward interest rate swaps | swap | 29 | ||||
Notional value | $ 786,200,000 | ||||
Weighted average interest rate | 1.91% | ||||
Forward Interest Rate Swaps | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Number of additional forward interest rate swaps | swap | 13 | ||||
Notional value | $ 580,800,000 | ||||
Weighted average interest rate | 1.60% | ||||
Accumulated income (loss) on interest rate swaps | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Stockholders’ equity | $ 4,400,000 | ||||
Subsequent Event | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Premium percentage | 102.625% | ||||
5.25% Senior Notes | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Interest rate (as a percentage) | 5.25% | ||||
5.25% Senior Notes | Subsequent Event | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fully redeemed aggregate principal amount | $ 300,000,000 | ||||
Interest rate (as a percentage) | 5.25% | ||||
Principal amount of notes redeemed plus associated premium | $ 307,900,000 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements - Assets and Liabilities Associated with Interest Rate Derivatives (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Assets from interest rate risk management activities: | ||
Other long-term assets | $ 0 | $ 1.9 |
Liabilities from interest rate risk management activities: | ||
Accrued expenses and other current liabilities | 4.4 | 2.8 |
Long-term interest rate swap liabilities | 41.7 | 4.4 |
Total long-term liabilities from interest rate risk management activities | $ 46.1 | $ 7.2 |
Financial Instruments and Fai_6
Financial Instruments and Fair Value Measurements - Impact of Interest Rate Derivative Instruments (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Derivative [Line Items] | |||
Amount of unrealized income (loss), net of tax, recognized in other comprehensive (loss) income | $ (31.6) | $ (4.2) | $ (4.2) |
Amount of income (loss) reclassified from other comprehensive (loss) income into statements of operations | (0.5) | $ 0.3 | |
Floorplan interest expense, net | |||
Derivative [Line Items] | |||
Amount of income (loss) reclassified from other comprehensive (loss) income into statements of operations | (0.6) | 0.3 | |
Other interest expense, net | |||
Derivative [Line Items] | |||
Amount of income (loss) reclassified from other comprehensive (loss) income into statements of operations | $ (0.1) | $ 0.1 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | ||
Cash and cash equivalents | $ 19.2 | $ 23.8 |
Restricted cash | 4.3 | |
Cash paid for interest | 19.9 | 21.9 |
Cash paid for taxes, net of refunds | $ (6.2) | $ 1.2 |
Cash Flow Information - Non-cas
Cash Flow Information - Non-cash Activities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Supplemental Cash Flow Elements [Abstract] | |||
Increase (decrease) in accrual for capital expenditures | $ 0.7 | $ (4.1) | |
Operating leases, initial recognition | 0.1 | $ 4.3 | |
Operating leases, modifications and remeasurements | 11.9 | 0.7 | |
Finance leases, initial recognition | 10 | 0 | |
Finance leases, modifications and remeasurements | $ (1.5) | $ 0 |
Receivables and Contract Asse_3
Receivables and Contract Assets, Net - Financial Assets (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Contracts-in-transit | $ 67 | $ 169.9 |
Vehicle receivables | 48.7 | 84.3 |
Total contracts-in-transit and vehicle receivables | 115.8 | 254.1 |
Less: allowance for doubtful accounts | 0.3 | 0.3 |
Total contracts-in-transit and vehicle receivables, net | 115.5 | 253.8 |
Accounts and notes receivable | ||
Accounts and notes receivable | 180.5 | 227.9 |
Less: allowance for doubtful accounts | 3.4 | 2.8 |
Accounts and notes receivable, net | 177.1 | 225.1 |
Adjustment to credit losses as result of COVID-19 | 0.4 | |
Total contract assets, net | 22.7 | 21.6 |
Manufacturer receivables | ||
Accounts and notes receivable | ||
Accounts and notes receivable | 97.5 | 124 |
Parts and service receivables | ||
Accounts and notes receivable | ||
Accounts and notes receivable | 51.2 | 57 |
F&I receivables | ||
Accounts and notes receivable | ||
Accounts and notes receivable | 19 | 28.3 |
Other | ||
Accounts and notes receivable | ||
Accounts and notes receivable | $ 12.8 | $ 18.6 |
Floorplan Notes Payable - Sched
Floorplan Notes Payable - Schedule of Floorplan Notes Payable (Details) - Line of credit - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Revolving credit facility — floorplan notes payable | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | $ 1,207.8 | $ 1,206 |
Long-term debt, offset | (82.6) | (106.8) |
Long-term debt | 1,125.1 | 1,099.1 |
Other non-manufacturer facilities | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | 43.5 | 45.3 |
Floorplan notes payable — credit facility and other, net | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | 1,168.6 | 1,144.4 |
FMCC facility | ||
Line of Credit Facility [Line Items] | ||
Long-term debt, gross | 235.5 | 208.5 |
Long-term debt, offset | (0.2) | (4.1) |
Long-term debt | 235.4 | 204.5 |
Other manufacturer affiliate facilities | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | 249.5 | 255.4 |
Floorplan notes payable — manufacturer affiliates, net | ||
Line of Credit Facility [Line Items] | ||
Long-term debt | $ 484.9 | $ 459.9 |
Floorplan Notes Payable (Detail
Floorplan Notes Payable (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Line of Credit Facility [Line Items] | ||
Outstanding letters of credit | $ 20,600,000 | $ 23,600,000 |
Revolving Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | 1,750,000,000 | |
Unamortized discount | 4,500,000 | |
FMCC facility | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 300,000,000 | |
Interest rate (as a percentage) | 4.75% | |
Basis spread on variable rate (as a percentage) | 1.50% | |
Other Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 249,500,000 | |
Floorplan Line | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 1,700,000,000 | |
Weighted average interest rate (as a percentage) | 1.76% | |
Commitment fee (as a percentage) | 0.15% | |
Acquisition Line | ||
Line of Credit Facility [Line Items] | ||
Maximum borrowing capacity | $ 349,000,000 | |
Minimum borrowing capacity | 50,000,000 | |
Sub-limit for letters of credit | 100,000,000 | |
Outstanding balance | $ 68,100,000 | $ 72,500,000 |
Interest rate (as a percentage) | 1.85% | |
Acquisition Line | Minimum | ||
Line of Credit Facility [Line Items] | ||
Commitment fee (as a percentage) | 0.15% | |
Acquisition Line | Maximum | ||
Line of Credit Facility [Line Items] | ||
Commitment fee (as a percentage) | 0.40% | |
UK Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 126,000,000 | |
UK Credit Facilities | Minimum | ||
Line of Credit Facility [Line Items] | ||
Interest rate (as a percentage) | 1.00% | |
UK Credit Facilities | Maximum | ||
Line of Credit Facility [Line Items] | ||
Interest rate (as a percentage) | 4.00% | |
Brazilian Credit Facilities | ||
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 13,900,000 | |
Brazilian Credit Facilities | Minimum | ||
Line of Credit Facility [Line Items] | ||
Interest rate (as a percentage) | 4.00% | |
Brazilian Credit Facilities | Maximum | ||
Line of Credit Facility [Line Items] | ||
Interest rate (as a percentage) | 14.00% | |
Rental Vehicles Financed through Credit Facility | ||
Line of Credit Facility [Line Items] | ||
Outstanding balance | $ 109,600,000 | |
Rental Vehicles Financed through Credit Facility | Minimum | ||
Line of Credit Facility [Line Items] | ||
Interest rate (as a percentage) | 1.00% | |
Rental Vehicles Financed through Credit Facility | Maximum | ||
Line of Credit Facility [Line Items] | ||
Interest rate (as a percentage) | 5.00% | |
LIBOR | New Vehicles | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percentage) | 1.10% | |
LIBOR | Used Vehicles | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percentage) | 1.40% | |
LIBOR | Acquisition Line | Minimum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percentage) | 1.00% | |
LIBOR | Acquisition Line | Maximum | ||
Line of Credit Facility [Line Items] | ||
Basis spread on variable rate (as a percentage) | 2.00% |
Debt - Composition of Long-Term
Debt - Composition of Long-Term Debt (Details) - USD ($) $ in Millions | Apr. 02, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | |||
Real estate related and other long-term debt | $ 38.4 | $ 42.8 | |
Finance leases | 87.4 | 83 | |
Long-term debt | 1,499.8 | 1,501.7 | |
Less: unamortized discount on 5.00% and 5.25% notes | (5.1) | (5.6) | |
Less: unamortized debt issuance costs | (2.3) | (4.8) | |
Less: current maturities | (354.7) | (59.1) | |
Long-term debt | 1,137.7 | 1,432.1 | |
Acquisition Line | |||
Debt Instrument [Line Items] | |||
Acquisition line | 68.1 | 72.5 | |
5.00% Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 550 | 550 | |
Interest rate (as a percentage) | 5.00% | ||
5.25% Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 300 | 300 | |
Interest rate (as a percentage) | 5.25% | ||
Real estate related | |||
Debt Instrument [Line Items] | |||
Real estate related and other long-term debt | $ 455.9 | $ 453.3 | |
Subsequent Event | 5.25% Senior Notes | |||
Debt Instrument [Line Items] | |||
Senior notes | $ 297.5 | ||
Interest rate (as a percentage) | 5.25% |
Debt - Narrative (Details)
Debt - Narrative (Details) - USD ($) $ in Millions | Apr. 02, 2020 | May 08, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||||
Additional mortgage loans | $ 18.9 | $ 0 | ||
Real estate related | ||||
Debt Instrument [Line Items] | ||||
Borrowings outstanding | 455.9 | |||
U.S. Notes | ||||
Debt Instrument [Line Items] | ||||
Borrowings outstanding | 366 | |||
U.K. Notes | ||||
Debt Instrument [Line Items] | ||||
Borrowings outstanding | 78.9 | |||
Brazil Note | ||||
Debt Instrument [Line Items] | ||||
Borrowings outstanding | $ 11 | |||
5.00% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percentage) | 5.00% | |||
5.25% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percentage) | 5.25% | |||
Acquisition Line | ||||
Debt Instrument [Line Items] | ||||
Acquisition line | $ 68.1 | $ 72.5 | ||
Interest rate (as a percentage) | 1.85% | |||
Subsequent Event | ||||
Debt Instrument [Line Items] | ||||
Premium percentage | 102.625% | |||
Unamortized premium | $ 0.6 | |||
Loss on redemption | 10.4 | |||
Write offs of unamortized discount | 1.9 | |||
Accrued interest | $ 4.6 | |||
Additional mortgage loans | $ 130 | |||
Subsequent Event | 5.25% Senior Notes | ||||
Debt Instrument [Line Items] | ||||
Interest rate (as a percentage) | 5.25% | |||
Fully redeemed aggregate principal amount | $ 300 | |||
Principal amount of notes redeemed plus associated premium | $ 307.9 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Mar. 31, 2020USD ($) |
Loss Contingencies [Line Items] | |
Letters of credit issued on behalf of lessee | $ 6.1 |
Lease Guarantee | |
Loss Contingencies [Line Items] | |
Lessee rental payment obligations | $ 38.5 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Increase (Decrease) in AOCI [Roll Forward] | ||
BALANCE | $ 1,255.7 | $ 1,095.7 |
Other comprehensive income (loss) before reclassifications: | ||
Pre-tax | (69.2) | (1.9) |
Tax effect | 9.7 | 1.3 |
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Provision (benefit) for income taxes | (0.2) | 0.1 |
Net current period other comprehensive income (loss) | (59) | (1) |
BALANCE | 1,174.6 | 1,127.7 |
Floorplan interest expense (pre-tax) | ||
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Pre-tax | 0.6 | (0.3) |
Other interest expense, net (pre-tax) | ||
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Pre-tax | 0.1 | (0.1) |
Accumulated other comprehensive income (loss) | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
BALANCE | (147) | (137.8) |
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Net current period other comprehensive income (loss) | (59) | (1) |
BALANCE | (206) | (138.7) |
Accumulated income (loss) on foreign currency translation | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
BALANCE | (142.9) | (146.7) |
Other comprehensive income (loss) before reclassifications: | ||
Pre-tax | (27.9) | 3.6 |
Tax effect | 0 | 0 |
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Provision (benefit) for income taxes | 0 | 0 |
Net current period other comprehensive income (loss) | (27.9) | 3.6 |
BALANCE | (170.8) | (143.1) |
Accumulated income (loss) on foreign currency translation | Floorplan interest expense (pre-tax) | ||
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Pre-tax | 0 | 0 |
Accumulated income (loss) on foreign currency translation | Other interest expense, net (pre-tax) | ||
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Pre-tax | 0 | 0 |
Accumulated income (loss) on interest rate swaps | ||
Increase (Decrease) in AOCI [Roll Forward] | ||
BALANCE | (4.1) | 8.9 |
Other comprehensive income (loss) before reclassifications: | ||
Pre-tax | (41.3) | (5.6) |
Tax effect | 9.7 | 1.3 |
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Provision (benefit) for income taxes | (0.2) | 0.1 |
Net current period other comprehensive income (loss) | (31.1) | (4.6) |
BALANCE | (35.2) | 4.4 |
Accumulated income (loss) on interest rate swaps | Floorplan interest expense (pre-tax) | ||
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Pre-tax | 0.6 | (0.3) |
Accumulated income (loss) on interest rate swaps | Other interest expense, net (pre-tax) | ||
Amounts reclassified from accumulated other comprehensive income (loss): | ||
Pre-tax | $ 0.1 | $ (0.1) |
Segment Information - Narrative
Segment Information - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 3 |
Segment Information - Reportabl
Segment Information - Reportable Segment Revenue, Income (Loss) Before Income Taxes, (Provision) Benefit for Income Taxes and Net Income (Loss) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Revenues | $ 2,690.8 | $ 2,808.4 |
Income (loss) before income taxes | 38.9 | 52.2 |
Severance expense | 0.9 | |
U.S. | ||
Segment Reporting Information [Line Items] | ||
Revenues | 2,007.6 | 2,062.8 |
Income (loss) before income taxes | 42.2 | 46.4 |
Gain on real estate and dealership transactions | 5.2 | |
Asset impairments | 2 | |
U.S. and Brazil | ||
Segment Reporting Information [Line Items] | ||
Loss on legal matters | 2.4 | |
U.K. | ||
Segment Reporting Information [Line Items] | ||
Revenues | 590.7 | 642.2 |
Income (loss) before income taxes | (2.7) | 6.2 |
Brazil | ||
Segment Reporting Information [Line Items] | ||
Revenues | 92.5 | 103.4 |
Income (loss) before income taxes | $ (0.6) | $ (0.4) |
Uncategorized Items - a2020q1fo
Label | Element | Value |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents | us-gaap_CashCashEquivalentsRestrictedCashAndRestrictedCashEquivalents | $ 36,900,000 |
Accounting Standards Update 2016-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (6,100,000) |
Accounting Standards Update 2016-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (6,100,000) |