Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 21, 2014 | Jun. 28, 2013 |
Document and Entity Information [Abstract] | ' | ' | ' |
Entity Registrant Name | 'ASBURY AUTOMOTIVE GROUP INC | ' | ' |
Entity Central Index Key | '0001144980 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Document Type | '10-K | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Amendment Flag | 'false | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 30,849,989 | ' |
Entity Well-known Seasoned Issuer | 'No | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $1,241.60 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
CURRENT ASSETS: | ' | ' |
Cash and cash equivalents | $5.40 | $6.20 |
Contracts-in-transit | 140.9 | 129.4 |
Accounts receivable (net of allowance of $1.0) | 95.7 | 94.3 |
Inventories | 767.7 | 648.5 |
Deferred income taxes | 9.4 | 10.9 |
Assets held for sale | 9.1 | 27.6 |
Other current assets | 80.4 | 69.5 |
Total current assets | 1,108.60 | 986.4 |
PROPERTY AND EQUIPMENT, net | 651.5 | 565.8 |
GOODWILL | 54.5 | 28.4 |
DEFERRED INCOME TAXES, net of current portion | 13.1 | 27.5 |
OTHER LONG-TERM ASSETS | 60.9 | 53.3 |
Total assets | 1,888.60 | 1,661.40 |
CURRENT LIABILITIES: | ' | ' |
Floor plan notes payable—trade | 74.7 | 55.1 |
Floor plan notes payable—non-trade | 534.8 | 501.6 |
Current maturities of long-term debt | 11.1 | 4.6 |
Accounts payable and accrued liabilities | 213.6 | 209.1 |
Liabilities associated with assets held for sale | 0 | 9.4 |
Total current liabilities | 834.2 | 779.8 |
LONG-TERM DEBT | 543.3 | 461.4 |
OTHER LONG-TERM LIABILITIES | 20.5 | 17.4 |
COMMITMENTS AND CONTINGENCIES (Note 20) | ' | ' |
SHAREHOLDERS' EQUITY: | ' | ' |
Preferred stock, $.01 par value, 10,000,000 shares authorized; none issued or outstanding | 0 | 0 |
Common stock, $.01 par value, 90,000,000 shares authorized; 40,095,557 and 39,824,708 shares issued, including shares held in treasury, respectively | 0.4 | 0.4 |
Additional paid-in capital | 510.5 | 499 |
Retained earnings | 163.5 | 54.4 |
Treasury stock, at cost; 9,330,443 and 8,507,948 shares, respectively | -184 | -149.4 |
Accumulated other comprehensive income (loss) | 0.2 | -1.6 |
Total shareholders' equity | 490.6 | 402.8 |
Total liabilities and shareholders' equity | $1,888.60 | $1,661.40 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
REVENUES: | ' | ' | ' |
New vehicle | $2,952.20 | $2,608.30 | $2,240.20 |
Used vehicle | 1,564.20 | 1,301.60 | 1,208.60 |
Parts and service | 611.6 | 565.3 | 555.6 |
Finance and insurance, net | 206.9 | 166.6 | 137 |
Total revenues | 5,334.90 | 4,641.80 | 4,141.40 |
COST OF SALES: | ' | ' | ' |
New vehicle | 2,770.90 | 2,441.80 | 2,088.30 |
Used vehicle | 1,444.10 | 1,197.50 | 1,108.10 |
Parts and service | 242.4 | 237.5 | 244.7 |
Total cost of sales | 4,457.40 | 3,876.80 | 3,441.10 |
GROSS PROFIT | 877.5 | 765 | 700.3 |
OPERATING EXPENSES: | ' | ' | ' |
Selling, general and administrative | 619.3 | 556.1 | 531.6 |
Depreciation and amortization | 24.3 | 22.6 | 22.5 |
Other operating expense, net | 7.8 | 0.4 | 15 |
Income from operations | 226.1 | 185.9 | 131.2 |
OTHER EXPENSES: | ' | ' | ' |
Floor plan interest expense | -12.5 | -11.6 | -9.3 |
Other interest expense, net | -39 | -35.6 | -39.6 |
Swap interest expense | -2.5 | -5 | -5.5 |
Convertible debt discount amortization | 0 | -0.4 | -0.8 |
Loss on extinguishment of long-term debt | -6.8 | 0 | -0.8 |
Total other expenses, net | -60.8 | -52.6 | -56 |
Income before income taxes | 165.3 | 133.3 | 75.2 |
INCOME TAX EXPENSE | 64.2 | 50 | 28.7 |
INCOME FROM CONTINUING OPERATIONS | 101.1 | 83.3 | 46.5 |
DISCONTINUED OPERATIONS, net of tax | 8 | -1.1 | 21.4 |
NET INCOME | $109.10 | $82.20 | $67.90 |
Basic— | ' | ' | ' |
Continuing operations (in dollars per share) | $3.29 | $2.68 | $1.46 |
Discontinued operations (in dollars per share) | $0.26 | ($0.04) | $0.68 |
Net income (in dollars per share) | $3.55 | $2.64 | $2.14 |
Diluted— | ' | ' | ' |
Continuing operations (in dollars per share) | $3.25 | $2.64 | $1.43 |
Discontinued operations (in dollars per share) | $0.26 | ($0.03) | $0.65 |
Net income (in dollars per share) | $3.51 | $2.61 | $2.08 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ' | ' | ' |
Basic (in shares) | 30.7 | 31.1 | 31.8 |
Stock options (in shares) | 0 | 0.2 | 0.6 |
Restricted stock (in shares) | 0.2 | 0.1 | 0.1 |
Performance share units (in shares) | 0.2 | 0.1 | 0.1 |
Diluted (in shares) | 31.1 | 31.5 | 32.6 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $1 | $1 |
Preferred stock, par value (in dollars per share) | $0.01 | $0.01 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $0.01 | $0.01 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 40,095,557 | 39,824,708 |
Treasury stock, shares (in shares) | 9,330,443 | 8,507,948 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' |
Net income | $109.10 | $82.20 | $67.90 |
Other comprehensive income (loss) - net of tax: | ' | ' | ' |
Change in fair value of cash flow swaps | 0.9 | 0 | 2.2 |
Amortization of terminated cash flow swaps | 2 | 4.7 | 0.3 |
Income tax expense associated with cash flow swaps | -1.1 | -1.8 | -1 |
Comprehensive income | $110.90 | $85.10 | $69.40 |
CONSOLIDATED_STATEMENTS_OF_SHA
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (USD $) | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | (Accumulated Deficit) Retained Earnings [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Loss [Member] |
In Millions, except Share data, unless otherwise specified | ||||||
Balance at Dec. 31, 2010 | $287.10 | $0.40 | $463.40 | ($95.70) | ($75) | ($6) |
Balance, shares at Dec. 31, 2010 | ' | 37,597,481 | ' | ' | 4,799,188 | ' |
Comprehensive Income (Loss): | ' | ' | ' | ' | ' | ' |
Net income | 67.9 | ' | ' | 67.9 | ' | ' |
Change in fair value of cash flow swaps, net of reclassification adjustment and tax benefit/expense | 1.3 | ' | ' | ' | ' | 1.3 |
Amortization of terminated cash flow swaps, net of tax expense | 0.2 | ' | ' | ' | ' | 0.2 |
Comprehensive income | 69.4 | ' | ' | 67.9 | ' | 1.5 |
Share-based compensation | 8.8 | ' | 8.8 | ' | ' | ' |
Issuance of common stock in connection with share-based payment arrangements, including tax (deficit) benefit, shares | ' | 1,314,223 | ' | ' | ' | ' |
Issuance of common stock in connection with share-based payment arrangements, including tax (deficit) benefit | 10.4 | ' | 10.4 | ' | ' | ' |
Repurchase of common stock associated with net share settlement of employee share-based awards, shares | ' | ' | ' | ' | 226,214 | ' |
Repurchase of common stock associated with net share settlement of employee share-based awards | -4.3 | ' | ' | ' | -4.3 | ' |
Purchase of treasury shares, shares | ' | ' | ' | ' | 2,566,096 | ' |
Purchase of treasury shares | -44.8 | ' | ' | ' | -44.8 | ' |
Balance at Dec. 31, 2011 | 326.6 | 0.4 | 482.6 | -27.8 | -124.1 | -4.5 |
Balance, shares at Dec. 31, 2011 | ' | 38,911,704 | ' | ' | 7,591,498 | ' |
Comprehensive Income (Loss): | ' | ' | ' | ' | ' | ' |
Net income | 82.2 | ' | ' | 82.2 | ' | ' |
Amortization of terminated cash flow swaps, net of tax expense | 2.9 | ' | ' | ' | ' | 2.9 |
Comprehensive income | 85.1 | ' | ' | 82.2 | ' | 2.9 |
Share-based compensation | 7.1 | ' | 7.1 | ' | ' | ' |
Issuance of common stock in connection with share-based payment arrangements, including tax (deficit) benefit, shares | ' | 913,004 | ' | ' | ' | ' |
Issuance of common stock in connection with share-based payment arrangements, including tax (deficit) benefit | 9.3 | ' | 9.3 | ' | ' | ' |
Repurchase of common stock associated with net share settlement of employee share-based awards, shares | ' | ' | ' | ' | 90,679 | ' |
Repurchase of common stock associated with net share settlement of employee share-based awards | -2.4 | ' | ' | ' | -2.4 | ' |
Purchase of treasury shares, shares | ' | ' | ' | ' | 825,771 | ' |
Purchase of treasury shares | -22.9 | ' | ' | ' | -22.9 | ' |
Balance at Dec. 31, 2012 | 402.8 | 0.4 | 499 | 54.4 | -149.4 | -1.6 |
Balance, shares at Dec. 31, 2012 | ' | 39,824,708 | ' | ' | 8,507,948 | ' |
Comprehensive Income (Loss): | ' | ' | ' | ' | ' | ' |
Net income | 109.1 | ' | ' | 109.1 | ' | ' |
Change in fair value of cash flow swaps, net of reclassification adjustment and tax benefit/expense | 0.6 | ' | ' | ' | ' | 0.6 |
Amortization of terminated cash flow swaps, net of tax expense | 1.2 | ' | ' | ' | ' | 1.2 |
Comprehensive income | 110.9 | ' | ' | 109.1 | ' | 1.8 |
Share-based compensation | 9 | ' | 9 | ' | ' | ' |
Issuance of common stock in connection with share-based payment arrangements, including tax (deficit) benefit, shares | ' | 270,849 | ' | ' | ' | ' |
Issuance of common stock in connection with share-based payment arrangements, including tax (deficit) benefit | 2.5 | ' | 2.5 | ' | ' | ' |
Repurchase of common stock associated with net share settlement of employee share-based awards, shares | ' | ' | ' | ' | 125,192 | ' |
Repurchase of common stock associated with net share settlement of employee share-based awards | -4.6 | ' | ' | ' | -4.6 | ' |
Purchase of treasury shares, shares | ' | ' | ' | ' | 697,303 | ' |
Purchase of treasury shares | -30 | ' | ' | ' | -30 | ' |
Balance at Dec. 31, 2013 | $490.60 | $0.40 | $510.50 | $163.50 | ($184) | $0.20 |
Balance, shares at Dec. 31, 2013 | ' | 40,095,557 | ' | ' | 9,330,443 | ' |
CONSOLIDATED_STATEMENTS_OF_SHA1
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Change in fair value of cash flow swaps, tax | ($0.30) | ' | ($0.90) |
Amortization of terminated cash flow swaps, tax | -0.8 | -1.8 | -0.1 |
Issuance of common stock in connection with share-based payment arrangements, tax | $2.30 | $5.40 | $3.80 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH FLOW FROM OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $109.10 | $82.20 | $67.90 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities— | ' | ' | ' |
Depreciation and amortization | 24.3 | 22.6 | 22.5 |
Stock-based compensation | 9 | 7.1 | 8.8 |
Deferred income taxes | 15.5 | 12.6 | 17.2 |
Loss on extinguishment of debt | 6.8 | 0 | 0.8 |
Loaner vehicle amortization | 10.1 | 9.3 | 8.2 |
Excess tax benefit on share-based arrangements | -2.3 | -5.4 | -3.8 |
Impairment expenses | 0 | 2.3 | 1.1 |
Lease termination charges | 5.5 | 1.8 | 1 |
Loss on disposal of fixed assets | 3.1 | 0.9 | 0.8 |
Gain on sale of assets, net | -14.6 | -2.1 | -35.9 |
Other adjustments, net | 3 | 6 | 3.9 |
Changes in operating assets and liabilities, net of acquisitions and divestitures— | ' | ' | ' |
Contracts-in-transit | -11.5 | -22.5 | -26.3 |
Accounts receivable | -14.9 | -33.3 | 1 |
Proceeds from the sale of accounts receivable | 13.5 | 18.3 | 22 |
Inventories | -46.1 | -76.4 | 56.3 |
Other current assets | -88.5 | -65.5 | -36.6 |
Floor plan notes payable—trade | 19.6 | -10.4 | -269.4 |
Floor plan notes payable—trade divestitures | 0 | 0 | -24.8 |
Accounts payable and accrued liabilities | 6 | 29.5 | 7.9 |
Swap termination settlement | 0 | 0 | -7.1 |
Proceeds from deferred compensation plan termination | 7.8 | 0 | ' |
Distribution of deferred compensation plan assets to participants | -7.8 | 0 | ' |
Deferred compensation plan excess funding refund | 0 | 3.2 | 0 |
Other long-term assets and liabilities, net | 3.1 | -0.9 | 3.3 |
Net cash provided by (used in) operating activities | 50.7 | -20.7 | -181.2 |
CASH FLOW FROM INVESTING ACTIVITIES: | ' | ' | ' |
Capital expenditures—excluding real estate | -49.9 | -56.4 | -22 |
Capital expenditures—capitalized interest | -1.3 | -0.9 | -0.4 |
Purchases of real estate | -10.7 | -12.6 | -18 |
Purchases of previously leased real estate | -35.7 | -17.5 | -30.3 |
Acquisitions | 61.8 | 34.7 | 0 |
Proceeds from the sale of assets | 33.9 | 8.6 | 104.4 |
Other investing activities | 0 | 0 | -0.6 |
Net cash (used in) provided by investing activities | -125.5 | -113.5 | 34.3 |
CASH FLOW FROM FINANCING ACTIVITIES: | ' | ' | ' |
Floor plan borrowings—non-trade | 3,184.60 | 2,980.60 | 1,208.70 |
Floor plan borrowings—acquisitions | 11.3 | 7.8 | 0 |
Floor plan repayments—non-trade | -3,162.70 | -2,845.20 | -917.3 |
Floor plan repayments—non-trade divestitures | -5.4 | -4.6 | -14.8 |
Proceeds from borrowings | 237.2 | 66.2 | 0 |
Repayments of borrowings | -151.9 | -59.1 | -96.7 |
Payment of debt issuance costs | -7 | -0.7 | -4.3 |
Repurchases of common stock, including those associated with net share settlement of employee share-based awards | -34.6 | -25.3 | -49.1 |
Excess tax benefit on share-based arrangements | 2.3 | 5.4 | 3.8 |
Proceeds from the exercise of stock options | 0.2 | 3.9 | 6.6 |
Net cash provided by financing activities | 74 | 129 | 136.9 |
Net decrease in cash and cash equivalents | -0.8 | -5.2 | -9.9 |
CASH AND CASH EQUIVALENTS, beginning of period | 6.2 | 11.4 | 21.3 |
CASH AND CASH EQUIVALENTS, end of period | $5.40 | $6.20 | $11.40 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Description of Business | ' | |
DESCRIPTION OF BUSINESS | ||
We are one of the largest automotive retailers in the United States, operating 100 franchises (80 dealership locations) in 18 metropolitan markets within 10 states as of December 31, 2013. We offer an extensive range of automotive products and services, including new and used vehicles; vehicle maintenance, replacement parts and collision repair services; and financing, insurance and service contracts. As of December 31, 2013, we offered 29 domestic and foreign brands of new vehicles. Our current brand mix is weighted 86% towards luxury and mid-line import brands, with the remaining 14% consisting of domestic brands. We also operate 24 collision repair centers that serve customers in our local markets. | ||
Our retail network is made up of dealerships operating primarily under the following locally-branded dealership groups: | ||
• | Coggin dealerships, operating primarily in Jacksonville, Fort Pierce and Orlando, Florida; | |
• | Courtesy dealerships operating in Tampa, Florida; | |
• | Crown dealerships operating in New Jersey, North Carolina, South Carolina and Virginia; | |
• | Nalley dealerships operating in metropolitan Atlanta, Georgia; | |
• | McDavid dealerships operating in Austin, Dallas and Houston, Texas; | |
• | North Point dealerships operating in the Little Rock, Arkansas area; | |
• | Plaza dealerships operating in metropolitan St. Louis, Missouri; and | |
• | Gray-Daniels dealerships operating in the Jackson, Mississippi area. | |
Our operating results are generally subject to changes in the economic environment as well as seasonal variations. Historically, we have generated more revenue and operating income in the second and third quarters than in the first and fourth quarters of the calendar year. Generally, the seasonal variations in our operations are caused by factors related to weather conditions, changes in manufacturer incentive programs, model changeovers and consumer buying patterns, among other things. |
Summary_of_Significant_Account
Summary of Significant Accounting Policies | 12 Months Ended | ||
Dec. 31, 2013 | |||
Accounting Policies [Abstract] | ' | ||
Summary of Significant Accounting Policies | ' | ||
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | |||
Basis of Presentation | |||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and reflect the consolidated accounts of Asbury Automotive Group, Inc. and our wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. In addition, certain reclassifications of amounts previously reported have been made to the accompanying Consolidated Financial Statements in order to conform to current presentation. | |||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed quarterly and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying consolidated financial statements include, but are not limited to, those relating to inventory valuation reserves, reserves for chargebacks against revenue recognized from the sale of finance and insurance products, certain assumptions related to intangible and long-lived assets, reserves for insurance programs, reserves for certain legal or similar proceedings relating to our business operations, realization of deferred tax assets and reserves for estimated tax liabilities. | |||
Cash and Cash Equivalents | |||
Cash and cash equivalents include investments in money market accounts and short-term certificates of deposit which have maturity dates of less than 90 days when purchased. | |||
Contracts-In-Transit | |||
Contracts-in-transit represent receivables from third-party finance companies for the portion of new and used vehicle purchase price financed by customers through sources arranged by us. Amounts due from contracts-in-transit are generally collected within two weeks following the date of sale of the related vehicle. | |||
Inventories | |||
Inventories are stated at the lower of cost or market. We use the specific identification method to value vehicle inventories and the “first-in, first-out” method (“FIFO”) to account for our parts inventories. We maintain a reserve for specific used vehicles where cost basis exceeds market value. Our new vehicle sales histories have indicated that the vast majority of the new vehicles we sell are sold for, or in excess of, our cost to purchase those vehicles. Therefore, we generally do not maintain a reserve for specific new vehicle inventory. In assessing lower of cost or market for used vehicles, we consider (i) the aging of our used vehicles, (ii) historical sales experience of used vehicles and (iii) current market conditions and trends for used vehicles. We also review and consider the following metrics related to used vehicle sales (both on a recent and longer-term historical basis): (a) days of supply in our used vehicle inventory, (b) used vehicle units sold at less than original cost as a percentage of total used vehicles sold and (c) average vehicle selling price of used vehicle units sold at less than original cost. We then determine the appropriate level of reserve required to reduce our used vehicle inventory to the lower of cost or market, and record the resulting adjustment in the period in which we determine a loss has occurred. The level of reserve determined to be appropriate for each reporting period is considered to be a permanent inventory write-down and therefore is only released upon the sale of the related inventory. | |||
We receive assistance from certain automobile manufacturers in the form of advertising and interest credits. Manufacturer advertising credits that are reimbursements of costs associated with specific advertising programs are recognized as a reduction of advertising expense in the period they are earned. All other manufacturer advertising and interest credits are accounted for as purchase discounts and are recorded as a reduction of inventory and recognized as a reduction to New Vehicle Cost of Sales in the accompanying Consolidated Statements of Income in the period the related vehicle is sold. | |||
Property and Equipment | |||
Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Depreciation is included in Depreciation and Amortization and Discontinued Operations, net of tax, on the accompanying Consolidated Statements of Income. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the useful life of the related asset. The ranges of estimated useful lives are as follows (in years): | |||
Buildings and improvements | Oct-40 | ||
Machinery and equipment | 10-May | ||
Furniture and fixtures | 10-Mar | ||
Company vehicles | 5-Mar | ||
Expenditures for major additions or improvements, which extend the useful lives of assets, are capitalized. Minor replacements, maintenance and repairs, which do not improve or extend the lives of such assets, are expensed as incurred. | |||
We review property and equipment for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. When we test our long-lived assets for impairment, we first compare the carrying amount of the underlying assets to their net recoverable value by reviewing the undiscounted cash flows expected to result from the use and eventual disposition of the underlying assets. If the carrying amount of the underlying assets is less than their net recoverable value, then we calculate an impairment equal to the excess of the carrying amount over the fair market value, and the impairment loss would be charged to operations in the period identified. As a result of impairment tests conducted in 2013, 2012 and 2011, we recorded only immaterial impairments of certain of our property and equipment in those periods. | |||
We capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and is depreciated over the estimated useful lives of the assets. | |||
Acquisitions | |||
Acquisitions are accounted for under the purchase method of accounting and the assets acquired and liabilities assumed are recorded at their fair value as of the acquisition dates. The operations of acquired dealerships are included in the accompanying Consolidated Statements of Income commencing on the date of acquisition. | |||
Goodwill and Other Intangible Assets | |||
Goodwill represents the excess cost of the businesses acquired over the fair market value of the identifiable net assets. We have determined that, based on how we integrate acquisitions into our business, how the components of our business share resources and interact with one another, and the fact that all components are economically similar, we qualify as a single reporting unit for purposes of testing goodwill for impairment. | |||
Our only significant identifiable intangible assets, other than goodwill, are rights under franchise agreements with manufacturers, which are recorded at an individual dealership level. The fair market value of our manufacturer franchise rights, which are included in Other Long Term Assets on the accompanying Consolidated Balance Sheets, is determined at the acquisition date through discounting the projected cash flows specific to each franchise. We have determined that manufacturer franchise rights have an indefinite life as there are no economic, contractual or other factors that limit their useful lives and they are expected to generate cash flows indefinitely due to the historically long lives of the manufacturers’ brand names. Furthermore, to the extent that any agreements evidencing our manufacturer franchise rights would expire, we expect that we would be able to renew those agreements in the ordinary course of business. | |||
We do not amortize goodwill and other intangible assets that are deemed to have indefinite lives. We review goodwill and manufacturer franchise rights for impairment annually as of October 1st of each year, or more often if events or circumstances indicate that impairment may have occurred. We are subject to financial statement risk to the extent that manufacturer franchise rights become impaired due to decreases in fair market value of our individual franchises or to the extent that goodwill becomes impaired due to decreases in the fair market value of our automotive retail business. | |||
We completed our annual intangible impairment tests as of October 1, 2013, and no impairment of goodwill or other intangible assets was recognized as a result of such tests. | |||
Debt Issuance Costs | |||
Debt issuance costs are capitalized and included in Other Current Assets and Other Long-Term Assets in the accompanying Consolidated Balance Sheets. Debt issuance costs are amortized to Other Interest Expense, net and Floor Plan Interest Expense in the accompanying Consolidated Statements of Income through maturity using either the effective interest method or straight line method. | |||
Derivative Instruments and Hedging Activities | |||
From time to time, we utilize derivative financial instruments to manage our capital structure and interest rate risk. The types of risks hedged are those relating to the variability of cash flows and changes in the fair value of our financial instruments caused by movements in interest rates. We document our risk management strategy and assess hedge effectiveness at the inception and during the term of each hedge. Derivatives are reported at fair value on the accompanying Consolidated Balance Sheets. | |||
The effective portion of the gain or loss on our cash flow hedges is reported as a component of Accumulated Other Comprehensive Loss on the accompanying Consolidated Balance Sheets and reclassified to Swap Interest Expense in the accompanying Consolidated Statements of Income in the same period during which the hedged transaction affects earnings. | |||
Measurements of hedge effectiveness are based on comparisons between the gains or losses of the actual interest rate swaps and the gains or losses of hypothetical interest rate swaps, which have the same critical terms of the defined hedged items. Ineffective portions of these interest rate swaps are reported as a component of interest expense in the accompanying Consolidated Statements of Income. | |||
Insurance | |||
We are self insured for employee medical claims and maintain stop loss insurance for large-dollar individual claims. We have large deductible insurance programs for workers compensation, property and general liability claims. We maintain and review our claim and loss history to assist in assessing our expected future liability for these claims. We also use professional service providers, such as account administrators and actuaries, to help us accumulate and assess this information. | |||
Revenue Recognition | |||
Revenue from the sale of new and used vehicles (which excludes sales tax) is recognized upon the latest of delivery, passage of title, signing of the sales contract or approval of financing. Revenue from the sale of parts, service and collision repair work (which excludes sales tax) is recognized upon delivery of parts to the customer or at the time vehicle service or repair work is completed, as applicable. Manufacturer incentives and rebates, including manufacturer holdbacks, floor plan interest assistance and certain advertising assistance, are recognized as a reduction of new vehicle cost of sales at the time the related vehicles are sold. | |||
We receive commissions from third-party lending and insurance institutions for arranging customer financing and from the sale of vehicle service contracts, credit life insurance and disability insurance, and other insurance, to customers (collectively “F&I”). We may be charged back (“chargebacks”) for F&I commissions in the event a contract is prepaid, defaulted upon or terminated. F&I commissions are recorded at the time a vehicle is sold and a reserve for future chargebacks is established based on historical chargeback experience and the termination provisions of the applicable contract. F&I commissions, net of estimated future chargebacks, are included in Finance and Insurance, net in the accompanying Consolidated Statements of Income. | |||
Internal Profit | |||
Revenues and expenses associated with the internal work performed by our parts and service departments on new and used vehicle inventory are eliminated in consolidation. The gross profit earned by our parts and service departments for internal work performed is included as a reduction of Parts and Service Cost of Sales on the accompanying Consolidated Statements of Income. The costs incurred by our new and used vehicle departments for work performed by our parts and service departments is included in either New Vehicle Cost of Sales or Used Vehicle Cost of Sales on the accompanying Consolidated Statements of Income, depending on the classification of the vehicle serviced. We maintain a reserve to eliminate the internal profit on vehicles that have not been sold. | |||
Share-Based Compensation | |||
We record share-based compensation expense under the fair value method on a straight-line basis over the vesting period, unless the awards are subject to performance conditions, in which case we recognize the expense over the requisite service period of each separate vesting tranche. | |||
Earnings per Common Share | |||
Basic earnings per common share is computed by dividing net income by the weighted-average common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted-average common shares and common share equivalents outstanding during the period. For all periods presented, there were no adjustments to the numerator necessary to compute diluted earnings per share. | |||
Advertising | |||
We expense costs of advertising as incurred and production costs when the advertising initially takes place, net of certain advertising credits and other discounts. Advertising expense from continuing operations totaled $32.8 million, $27.8 million and $25.3 million for the years ended December 31, 2013, 2012 and 2011, net of earned advertising credits and volume discounts of $13.5 million, $11.8 million and $9.5 million, respectively, and is included in Selling, General and Administrative expense in the accompanying Consolidated Statements of Income. | |||
Income Taxes | |||
We use the liability method to account for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using currently enacted tax rates. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will not be realized. | |||
Discontinued Operations | |||
Certain amounts reflected in the accompanying Consolidated Balance Sheets have been classified as Assets Held for Sale or Liabilities Associated with Assets Held for Sale, with such classification beginning on the date that the assets and associated liabilities were first considered held for sale. | |||
We report franchises and ancillary businesses as discontinued operations when it is evident that the operations and cash flows of a franchise or ancillary business being actively marketed for sale will be eliminated from our on-going operations and that we will not have any significant continuing involvement in its operations. We do not classify franchises as discontinued operations if we believe that the cash flows generated by the franchise will be replaced by expanded operations of our remaining franchises within the respective local market area. | |||
Amounts in the accompanying Consolidated Statements of Income for the years ended December 31, 2012 and December 31, 2011 have been reclassified to reflect the results of franchises sold or closed during 2013 as if we had classified those franchises as discontinued operations for all years presented. | |||
Statements of Cash Flows | |||
Borrowings and repayments of floor plan notes payable to a lender unaffiliated with the manufacturer from which we purchase a particular new vehicle ("Non-Trade"), and all floor plan notes payable relating to pre-owned vehicles (together referred to as "Floor Plan Notes Payable-Non-Trade"), are classified as financing activities on the accompanying Consolidated Statements of Cash Flows, with borrowings reflected separately from repayments. The net change in floor plan notes payable to a lender affiliated with the manufacturer from which we purchase a particular new vehicle (collectively referred to as “Floor Plan Notes Payable - Trade”) is classified as an operating activity on the accompanying Consolidated Statements of Cash Flows. Borrowings of floor plan notes payable associated with inventory acquired in connection with all acquisitions are classified as a financing activity. Cash flows related to floor plan notes payable included in operating activities differ from cash flows related to floor plan notes payable included in financing activities only to the extent that the former are payable to a lender affiliated with the manufacturer from which we purchased the related inventory, while the latter are payable to a lender not affiliated with the manufacturer from which we purchased the related inventory. Repayments of Floor Plan Notes Payable - Trade associated with divestitures are classified as an operating activity. Repayments of Floor Plan Notes Payable - Non-Trade associated with divestitures are classified as a financing activity. | |||
Loaner vehicles account for a significant portion of Other Current Assets. We acquire loaner vehicles either with available cash or through borrowings from manufacturer affiliated lenders. Loaner vehicles are initially used by our service department for only a short period of time (typically six to twelve months) before we seek to sell them. Therefore, we classify the acquisition of loaner vehicles and the related borrowings and repayments as operating activities in the accompanying Consolidated Statements of Cash Flows. The cash outflow to acquire loaner vehicles is presented in Other Current Assets in the accompanying Consolidated Statements of Cash Flows. Borrowings and repayments of loaner vehicle notes payable are presented in Accounts Payable and Accrued Liabilities in the accompanying Consolidated Statements of Cash Flows. When loaner vehicles are taken out of loaner status they are transferred to used vehicle inventory, which is reflected as a non-cash transfer in the accompanying Consolidated Statements of Cash Flows. The cash inflow from the sale of loaner vehicles is reflected in Inventories in the accompanying Consolidated Statements of Cash Flows. | |||
Business and Credit Concentration Risk | |||
Financial instruments, which potentially subject us to concentration of credit risk, consist principally of cash deposits. We maintain cash balances at financial institutions with strong credit ratings. Generally, amounts invested with financial institutions are in excess of FDIC insurance limits. | |||
We have substantial debt service obligations. As of December 31, 2013, we had total debt of $554.4 million, excluding floor plan notes payable on our accompanying Consolidated Balance Sheet. In addition, we and our subsidiaries have the ability to obtain additional debt from time to time to finance acquisitions, real property purchases, capital expenditures or for other purposes, although such borrowings are subject to the restrictions contained in the credit agreement governing our senior secured credit facilities and the indenture governing our 8.375% Senior Subordinated Notes due 2020 (the "8.375% Notes"). We will have substantial debt service obligations, consisting of required cash payments of principal and interest, for the foreseeable future. | |||
We are subject to operating and financial restrictions and covenants in certain of our leases and in our debt instruments, including the credit agreement governing our senior secured credit facilities, the 8.375% Notes indenture and the credit agreements covering our mortgage obligations. These agreements contain restrictions on, among other things, our ability to incur additional indebtedness, to create liens or other encumbrances, and to make certain payments (including dividends and repurchases of our shares and investments). These agreements may also require us to maintain compliance with certain financial and other ratios. Our failure to comply with any of these covenants in the future would constitute a default under the relevant agreement, which would, depending on the relevant agreement, (i) entitle the creditors under such agreement to terminate our ability to borrow under the relevant agreement and accelerate our obligations to repay outstanding borrowings; (ii) require us to apply our available cash to repay these borrowings; (iii) entitle the creditors under such agreement to foreclose on the property securing the relevant indebtedness; and/or (iv) prevent us from making debt service payments on certain of our other indebtedness, any of which would have a material adverse effect on our business, financial condition or results of operations. In many cases, a default under one of our debt or mortgage, agreements could trigger cross default provisions in one or more of our other debt or mortgages. | |||
A number of our dealerships are located on properties that we lease. Each of the leases governing such properties has certain covenants with which we must comply. If we fail to comply with the covenants under our leases, the respective landlords could terminate the leases and seek damages from us. | |||
Concentrations of credit risk with respect to contracts-in-transit and accounts receivable are limited primarily to automotive manufacturers and financial institutions. Credit risk arising from receivables from commercial customers is minimal due to the large number of customers comprising our customer base. | |||
A significant portion of our new vehicle sales are derived from a limited number of automotive manufacturers. For the year ended December 31, 2013, brands representing 5% or more of our revenues from new vehicle sales were as follows: | |||
Brand | % of Total | ||
New | |||
Vehicle Revenues | |||
Honda | 20 | % | |
Nissan | 13 | % | |
Toyota | 11 | % | |
BMW | 9 | % | |
Ford | 7 | % | |
Mercedes-Benz | 7 | % | |
Lexus | 7 | % | |
Acura | 5 | % | |
No other brand accounted for more than 5% of our total new vehicle revenue for the year ended December 31, 2013. | |||
Segment Reporting | |||
We have determined that as a result of how we internally view our business, regularly review our financial data and operating metrics and allocate resources that we operate in one segment, automotive retail. Our Chief Operating Decision Maker is our Chief Executive Officer who manages the business, regularly reviews financial information and allocates resources on a consolidated basis. Our dealerships are components of our automotive retail segment and, therefore, are not segments themselves. | |||
Recent Accounting Pronouncements | |||
During the first quarter of 2013, we adopted an accounting standard regarding the presentation of comprehensive income. This update was issued to improve the reporting of reclassifications out of Accumulated Other Comprehensive Income ("AOCI"). The update requires that significant items reclassified out of AOCI be presented in one place in the consolidated financial statements. The adoption of this standard update did not have a significant impact on our consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
ACQUISITIONS | ' | |||||||
ACQUISITIONS | ||||||||
Results of acquired dealerships are included in our accompanying Consolidated Statements of Income commencing on the date of acquisition. Our acquisitions are accounted for using the acquisition method of accounting, which requires, among other things, that the assets acquired and liabilities assumed be recognized at their acquisition date fair values, with any excess of the purchase price over the estimated fair values of the identifiable net assets acquired recorded as a combination of goodwill and manufacturer franchise rights. | ||||||||
In July 2013, we acquired three franchises (three dealership locations) for an aggregate purchase price of $61.8 million. We financed these acquisitions with $50.5 million of cash and $11.3 million of floor plan borrowings for the purchase of the related new vehicle inventory | ||||||||
In the fourth quarter of 2012, we acquired two franchises (two dealership locations) for an aggregate purchase price of $34.7 million. We financed the acquisitions with $26.9 million of cash and $7.8 million of floor plan borrowings for the purchase of the related new vehicle inventory | ||||||||
Below is the allocation of purchase price for acquisitions completed during 2013 and 2012. The $29.6 million and $11.6 million of goodwill and manufacturer franchise rights associated with our 2013 and 2012 acquisitions will be deductible for federal and state income taxes ratably over a 15 year period. | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Inventory | $ | 11.9 | $ | 9.8 | ||||
Loaners | — | 0.4 | ||||||
Real estate | 18.7 | 12.7 | ||||||
Property and equipment | 1.6 | 0.2 | ||||||
Goodwill | 26 | 10 | ||||||
Manufacturer franchise rights | 3.6 | 1.6 | ||||||
Total purchase price | $ | 61.8 | $ | 34.7 | ||||
During the year ended December 31, 2012, we were awarded one Jaguar franchise, which was added to our Plaza | ||||||||
dealership locations in St. Louis, Missouri. We did not pay any amounts in connection with being awarded this franchise. |
Accounts_Receivable
Accounts Receivable | 12 Months Ended |
Dec. 31, 2013 | |
Receivables [Abstract] | ' |
Accounts Receivable | ' |
ACCOUNTS RECEIVABLE | |
We have agreements to sell certain of our trade receivables, without recourse as to credit risk, in an amount not to exceed $25.0 million annually. The receivables are sold at a discount, which is included in Selling, General and Administrative expense in the accompanying Consolidated Statements of Income. The discounts totaled $0.3 million, $0.4 million and $0.6 million for the years ended December 31, 2013, 2012 and 2011, respectively. During the years ended December 31, 2013, 2012 and 2011, we sold $13.8 million, $18.7 million and $22.6 million of receivables, respectively, under these agreements and were reflected as reductions of trade accounts receivable. |
Inventories
Inventories | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Inventories | ' | |||||||
INVENTORIES | ||||||||
Inventories consisted of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
New vehicles | $ | 605.2 | $ | 517.4 | ||||
Used vehicles | 121.8 | 94.6 | ||||||
Parts and accessories | 40.7 | 36.5 | ||||||
Total inventories | $ | 767.7 | $ | 648.5 | ||||
The lower of cost or market reserves reduced total inventory cost by $6.0 million and $4.7 million as of December 31, 2013 and December 31, 2012, respectively. In addition to the inventories shown above, as of December 31, 2012 we had $6.6 million of inventories classified as Assets Held for Sale on the accompanying Consolidated Balance Sheet as they were associated with a franchise held for sale. As of December 31, 2013 and December 31, 2012, certain automobile manufacturer incentives reduced new vehicle inventory cost by $7.4 million and $6.3 million, respectively, and reduced new vehicle cost of sales from continuing operations for the years ended December 31, 2013, 2012 and 2011 by $28.0 million, $23.9 million, $19.9 million respectively. |
Assets_and_Liabilities_Held_fo
Assets and Liabilities Held for Sale | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Assets and Liabilities Held For Sale | ' | |||||||
ASSETS AND LIABILITIES HELD FOR SALE | ||||||||
Assets and liabilities classified as held for sale include (i) assets and liabilities associated with discontinued operations held for sale at each balance sheet date and (ii) real estate not currently used in our operations that we are actively marketing to sell and the related mortgage notes payable, if applicable. | ||||||||
During the year ended December 31, 2013, we sold one franchise (one dealership location). There were no assets or liabilities associated with pending dispositions as of December 31, 2013. Assets and liabilities associated with pending dispositions totaled $18.4 million and $9.4 million, respectively, as of December 31, 2012. | ||||||||
Real estate not currently used in our operations that we are actively marketing to sell totaled $9.1 million and $9.2 million as of December 31, 2013 and December 31, 2012, respectively. There were no liabilities associated with our real estate assets held for sale as of December 31, 2013 or December 31, 2012. | ||||||||
A summary of assets held for sale and liabilities associated with assets held for sale is as follows: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Assets: | ||||||||
Inventories | $ | — | $ | 6.6 | ||||
Property and equipment, net | 9.1 | 20.7 | ||||||
Goodwill | — | 0.3 | ||||||
Total assets | 9.1 | 27.6 | ||||||
Liabilities: | ||||||||
Floor plan notes payable—non-trade | — | 5.4 | ||||||
Accrued liabilities | — | 4 | ||||||
Total liabilities | — | 9.4 | ||||||
Net assets held for sale | $ | 9.1 | $ | 18.2 | ||||
Other_Current_Assets
Other Current Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets [Abstract] | ' | |||||||
Other Current Assets | ' | |||||||
OTHER CURRENT ASSETS | ||||||||
Other current assets consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Service loaner vehicles | $ | 59.9 | $ | 51 | ||||
Prepaid taxes | 9.9 | 3 | ||||||
Deposits and escrow | 4.4 | 0.1 | ||||||
Cash surrender value of corporate-owned life insurance policies | — | 7.7 | ||||||
Other | 6.2 | 7.7 | ||||||
Other current assets | $ | 80.4 | $ | 69.5 | ||||
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment, Net | ' | |||||||
PROPERTY AND EQUIPMENT, NET | ||||||||
Property and equipment, net consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Land | $ | 263.8 | $ | 227.7 | ||||
Buildings and leasehold improvements | 439.7 | 386.6 | ||||||
Machinery and equipment | 74.6 | 71.6 | ||||||
Furniture and fixtures | 44.4 | 35.3 | ||||||
Company vehicles | 9.1 | 8.6 | ||||||
Total | 831.6 | 729.8 | ||||||
Less—Accumulated depreciation | (180.1 | ) | (164.0 | ) | ||||
Property and equipment, net | $ | 651.5 | $ | 565.8 | ||||
During the years ended December 31, 2013, 2012 and 2011, we capitalized $1.3 million, $0.9 million and $0.4 million, respectively, of interest in connection with various capital projects to upgrade or remodel our facilities. Depreciation and capital lease amortization expense from continuing operations was $24.3 million, $22.6 million and $22.5 million for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||
We have multiple mortgage agreements with various lenders. For a detailed description of our mortgage agreements, refer to our “Long-Term Debt” footnote below. As of December 31, 2013, we had total mortgage notes payable outstanding of $241.5 million, of which $75.0 million was due under a real estate credit agreement described in further detail in our “Long-Term Debt” footnote below. As of December 31, 2012, we had total mortgage notes payable outstanding of $118.9 million. These obligations were collateralized by the related real estate with a carrying value of $361.4 million and $152.4 million as of December 31, 2013 and 2012, respectively. | ||||||||
Due to information obtained during then-current marketing efforts, we performed certain interim period impairment tests during 2012 and 2011. We compared the carrying value of our assets held for sale to estimates of fair value determined with the assistance of third-party broker opinions of value and third-party desktop appraisals. The impairment tests indicated an impairment of certain of our property and equipment. Accordingly, we recognized impairment expenses of $2.3 million and $1.1 million during 2012 and 2011, respectively, based on market approaches using Level 2 fair value inputs. Impairment expenses for 2012 included $2.0 million in Discontinued Operations, net in our Consolidated Statements of Income. |
Goodwill
Goodwill | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Goodwill | ' | |||||||||||
GOODWILL | ||||||||||||
Our acquisitions have resulted in the recording of goodwill, which is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||
Gross | Less: | Net | ||||||||||
Carrying | Accumulated | |||||||||||
Amount | Impairment | |||||||||||
(In millions) | ||||||||||||
Balance as of December 31, 2011 | $ | 556.4 | (537.7 | ) | $ | 18.7 | ||||||
Acquisitions | 10 | — | 10 | |||||||||
Divestitures | (0.3 | ) | — | (0.3 | ) | |||||||
Balance as of December 31, 2012 | 566.1 | (537.7 | ) | 28.4 | ||||||||
Acquisitions | 26.1 | — | 26.1 | |||||||||
Divestitures | — | — | — | |||||||||
Balance as of December 31, 2013 | $ | 592.2 | $ | (537.7 | ) | $ | 54.5 | |||||
Other_Longterm_Assets
Other Long-term Assets | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Other Long-term Assets | ' | |||||||
OTHER LONG-TERM ASSETS | ||||||||
Other Long-Term Assets consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Manufacturer franchise rights | $ | 38.6 | $ | 35 | ||||
Deferred financing costs | 12.6 | 10.9 | ||||||
Cash surrender value of corporate-owned life insurance policies | 2.5 | 2.4 | ||||||
Construction period rent | 1.5 | 2.2 | ||||||
Interest rate swap asset | 2.3 | — | ||||||
Other | 3.4 | 2.8 | ||||||
Total other long-term assets | $ | 60.9 | $ | 53.3 | ||||
Floor_Plan_Notes_Payable
Floor Plan Notes Payable | 12 Months Ended | |
Dec. 31, 2013 | ||
Debt Disclosure [Abstract] | ' | |
Floor Plan Notes Payable | ' | |
FLOOR PLAN NOTES PAYABLE | ||
In August 2013, the Company and certain of its subsidiaries entered into an amended and restated senior secured credit agreement with Bank of America, N.A. (“Bank of America”), as administrative agent, and the other agents and lenders party thereto (the “Restated Credit Agreement”). The Restated Credit Agreement amended and restated in its entirety the Company’s pre-existing senior secured credit agreement, dated as of October 14, 2011, by and among the Company and certain of its subsidiaries and Bank of America, as administrative agent, and the other agents and lenders party thereto (the “Prior Credit Agreement”). The Prior Credit Agreement had provided for our senior secured credit facilities, consisting of (i) a $175.0 million revolving credit facility with a $50.0 million sublimit for letters of credit (discussed further below under our “Long Term Debt” footnote), (ii) a $625.0 million new vehicle revolving floor plan facility, and (iii) a $100.0 million used vehicle revolving floor plan facility, in each case subject to limitations on borrowing availability as set out in the Prior Credit Agreement. | ||
The terms of the Restated Credit Agreement provide that: | ||
• | the new vehicle inventory floor plan facility thereunder was increased by $200.0 million to $825.0 million; | |
• | the interest rates on borrowings under the new vehicle and used vehicle floor plan facilities thereunder each decreased by 25 basis points to the one-month London Interbank Offered Rate ("LIBOR") plus 1.25% and one-month LIBOR plus 1.50%, respectively, in each case as compared to the terms of the Prior Credit Agreement; and | |
• | the maturity date of the Prior Credit Agreement was extended from October 2016 until August 2018. | |
Except as described above, the terms of the Restated Credit Agreement did not materially change the terms of the Prior Credit Agreement. Subject to the compliance with certain conditions, the Restated Credit Agreement provides that we and our dealership subsidiaries that are borrowers under the senior secured credit facilities (collectively, the “Borrowers”) have the ability, at their option and subject to the receipt of additional commitments from existing or new lenders, to increase the size of the new vehicle floor plan facility or the used vehicle floor plan facility by up to $250.0 million in the aggregate without lender consent. | ||
In addition to the payment of interest on borrowings outstanding under the senior secured credit facilities, the Borrowers are required to pay a commitment fee on the total commitments under the senior secured credit facilities. The fees for commitments under the new vehicle revolving floor plan facility and the used vehicle revolving floor plan facility are 0.20% per annum and 0.25% per annum, respectively, and are payable on a quarterly basis. | ||
We consider floor plan notes payable to a party that is affiliated with the entity from which we purchase our new vehicle inventory “Floor plan notes payable—trade” and all other floor plan notes payable “Floor plan notes payable—non-trade.” The majority of our floor plan notes are payable to parties unaffiliated with the entities from which we purchase our new vehicle inventory, with the exception of floor plan notes payable relating to the financing of new Ford and Lincoln vehicles, and certain loaner vehicles. As of December 31, 2013, we had $74.7 million of floor plan notes payable—trade and $534.8 million of floor plan notes payable—non-trade outstanding. | ||
As of December 31, 2013 and 2012, we had a total of $609.5 million and $562.1 million of floor plan notes payable outstanding, respectively, including $5.4 million classified as Liabilities Associated with Assets Held for Sale as of December 31, 2012. | ||
In connection with our vehicle floor plan facility described above, we have established an account with Bank of America that allows us to transfer cash to an account as an offset to floor plan notes payable (a “floor plan offset account”). These transfers reduce the amount of outstanding new vehicle floor plan notes payable that would otherwise accrue interest, while retaining the ability to transfer amounts from the floor plan offset account into our operating cash accounts within one to two days. As of December 31, 2013 and 2012 we had $44.3 million and $12.6 million, respectively in this floor plan offset account. | ||
The representations and covenants contained in the Restated Credit Agreement are customary for financing transactions of this nature including, among others, a requirement to comply with a minimum consolidated current ratio and consolidated fixed charge coverage ratio (each as defined in the Credit Agreement) and a maximum consolidated total lease adjusted leverage ratio, in each case as set out in the Credit Agreement. In addition, certain other covenants could restrict the Company's ability to incur additional debt, pay dividends or acquire or dispose of assets. See the “Covenants” section below under our "Long Term Debt" footnote. | ||
The Restated Credit Agreement also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. In certain instances, an event of default under either the revolving credit facility or the used vehicle revolving floor plan facility could be, or result in, an event of default under the new vehicle revolving floor plan facility, and vice versa. Upon the occurrence of an event of default, the Company could be required to immediately repay all amounts outstanding under the applicable facility. | ||
The senior secured credit facilities are guaranteed by each existing, and will be guaranteed by each future, direct and indirect domestic subsidiary of the Company, other than, at our option, any immaterial subsidiary. The new vehicle revolving floor plan facility and the used vehicle revolving floor plan facility are each also guaranteed by the Company. The obligations under each of the revolving credit facility and the used vehicle revolving floor plan facility are collateralized by liens on substantially all of the present and future assets, other than real property, of the Company and the guarantors. The obligations under the new vehicle revolving floor plan facility are collateralized by liens on substantially all of the present and future assets, other than real property, of the borrowers under the new vehicle revolving floor plan facility. |
Accounts_Payable_and_Accrued_L
Accounts Payable and Accrued Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Accounts Payable and Accrued Liabilities | ' | |||||||
ACCOUNTS PAYABLE AND ACCRUED LIABILITIES | ||||||||
Accounts payable and accrued liabilities consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accounts payable | $ | 62.4 | $ | 64.8 | ||||
Loaner vehicle notes payable | 52.6 | 46.7 | ||||||
Accrued compensation | 23.4 | 20.2 | ||||||
Taxes payable (non-income tax) | 15.8 | 15.9 | ||||||
Accrued insurance | 15.8 | 14.6 | ||||||
Accrued finance and insurance chargebacks | 14.2 | 11 | ||||||
Accrued interest | 5.5 | 7 | ||||||
Deferred compensation liability | — | 7.8 | ||||||
Other | 23.9 | 21.1 | ||||||
Accounts payable and accrued liabilities | $ | 213.6 | $ | 209.1 | ||||
Longterm_Debt
Long-term Debt | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||
Long-term Debt | ' | ||||||||||||||||||||
LONG-TERM DEBT | |||||||||||||||||||||
Long-term debt consists of the following: | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 300 | $ | 200 | |||||||||||||||||
7.625% Senior Subordinated Notes due 2017 | — | 143.2 | |||||||||||||||||||
Mortgage notes payable bearing interest at fixed and variable rates | 166.5 | 118.9 | |||||||||||||||||||
Real estate credit agreement | 75 | — | |||||||||||||||||||
Capital lease obligations | 3.7 | 3.9 | |||||||||||||||||||
545.2 | 466 | ||||||||||||||||||||
Add: unamortized premium on 8.375% Senior Subordinated Notes due 2020 | 9.2 | — | |||||||||||||||||||
Long-term debt, including current portion | 554.4 | 466 | |||||||||||||||||||
Less: current portion | (11.1 | ) | (4.6 | ) | |||||||||||||||||
Long-term debt | $ | 543.3 | $ | 461.4 | |||||||||||||||||
The aggregate maturities of long-term debt as of December 31, 2013, are as follows (in millions) (a): | |||||||||||||||||||||
2014 | $ | 10 | |||||||||||||||||||
2015 | 26.4 | ||||||||||||||||||||
2016 | 9.5 | ||||||||||||||||||||
2017 | 9.8 | ||||||||||||||||||||
2018 | 10.1 | ||||||||||||||||||||
Thereafter | 479.4 | ||||||||||||||||||||
$ | 545.2 | ||||||||||||||||||||
______________________________ | |||||||||||||||||||||
(a) | Does not include $9.2 million of unamortized premium that increases the book value of our 8.375% Notes ($1.1 million of which was classified within Current Portion of Long Term Debt as of December 31, 2013). | ||||||||||||||||||||
8.375% Senior Subordinated Notes Add-On Issuance | |||||||||||||||||||||
In June 2013, the Company completed an add-on issuance of $100.0 million aggregate principal amount of 8.375% Senior Subordinated Notes due 2020 (the “8.375% Notes”) at a price of 109.75% of par, plus accrued interest from May 15, 2013 (the "June 2013 Offering"). After deducting the initial purchasers' discounts and expenses of $2.3 million, we received net proceeds of approximately $108.3 million from this offering. The $9.8 million premium paid by the initial purchasers of the 8.375% Notes was recorded as a component of long-term debt on our Consolidated Balance Sheet and is being amortized as a reduction of interest expense over the remaining term of the 8.375% Notes. The capitalized costs associated with the issuance and sale of the 8.375% Notes are being amortized as an addition to interest expense over the remaining term of the 8.375% Notes. Including the amortization of the $9.8 million premium, and assuming the 8.375% Notes are outstanding until their maturity in November 2020, the effective interest rate on the 8.375% Notes issued in the June 2013 Offering will be 6.725%. | |||||||||||||||||||||
Restated Credit Agreement | |||||||||||||||||||||
As discussed above under our “Floor Plan Notes Payable” footnote, the Restated Credit Agreement includes a $175.0 million revolving credit facility with a $50.0 million sublimit for letters of credit. Under the revolving credit facility, subject to a borrowing base, we may (i) borrow up to $175.0 million, which amount may be expanded to up to $225.0 million in total credit availability upon satisfaction of certain conditions and (ii) request Bank of America to issue letters of credit on our behalf up to $50.0 million. Availability under the revolving credit facility is, in part, a function of our borrowing base. Availability is reduced on a dollar-for-dollar basis by the aggregate face amount of any outstanding letters of credit. Based on the borrowing base calculation and the $14.6 million of outstanding letters of credit as of December 31, 2013, our available borrowings were limited to $160.4 million as of December 31, 2013. As of December 31, 2013, we did not have any borrowings outstanding under the revolving credit facility. Proceeds from borrowings from time to time under the revolving credit facility may be used for, among other things, acquisitions, working capital and capital expenditures. | |||||||||||||||||||||
Borrowings under the revolving credit facility bear interest, at our option, based on LIBOR plus 1.75% to 2.75% or the Base Rate plus 0.75% to 1.75%, in each case based on our total lease adjusted leverage ratio. The Base Rate is the highest of the (i) Bank of America, N.A. prime rate, (ii) Federal Funds rate plus 0.50%, and (iii) one month LIBOR plus 1.0%. | |||||||||||||||||||||
In addition to the payment of interest on borrowings outstanding under the senior secured credit facilities, the Borrowers are required to pay a commitment fee on the total commitments under the senior secured credit facilities. The fees for commitments under the new vehicle revolving floor plan facility and the used vehicle revolving floor plan facility are 0.20% per annum and 0.25% per annum, respectively, and are payable on a quarterly basis. | |||||||||||||||||||||
The representations and covenants contained in the Restated Credit Agreement are customary for financing transactions of this nature including, among others, a requirement to comply with a minimum consolidated current ratio and consolidated fixed charge coverage ratio (each as defined in the Restated Credit Agreement) and a maximum consolidated total lease adjusted leverage ratio, in each case as set out in the Restated Credit Agreement. In addition, certain other covenants could restrict the Company's ability to incur additional debt, pay dividends or acquire or dispose of assets. See “Covenants” below. | |||||||||||||||||||||
Redemption of 7.625% Senior Subordinated Notes due 2017 | |||||||||||||||||||||
In September 2013, the Company redeemed all of the $143.2 million of its outstanding 7.625% Senior Subordinated Notes due 2017 (the "7.625% Notes"), using proceeds from the June 2013 Offering and borrowings under a real estate term loan credit agreement (the “Real Estate Credit Agreement”). In connection with the redemption, we recognized a $6.8 million loss, which is included in Loss on Extinguishment of Long-Term Debt on the accompanying Consolidated Statements of Income and consisted of (i) $3.6 million of premiums paid pursuant to the terms of the redemption, (ii) a $3.1 million write-off of unamortized debt issuance costs associated with the 7.625% Notes and (iii) $0.1 million of third-party costs associated with the redemption of the 7.625% Notes. | |||||||||||||||||||||
Real Estate Credit Agreement | |||||||||||||||||||||
In September 2013, the Company and certain of its subsidiaries entered into the Real Estate Credit Agreement with Bank of America, as lender. The Real Estate Credit Agreement provides for term loans to certain of the Company’s subsidiaries that are borrowers under the Real Estate Credit Agreement in an aggregate amount not to exceed $75.0 million, subject to customary terms and conditions. In September 2013 and October 2013, the Company borrowed aggregate amounts of $57.3 million and $17.7 million, respectively, under the Real Estate Credit Agreement. As described above, a portion of the proceeds from borrowings under the Real Estate Credit Agreement were used to pay a portion of the redemption price in connection with our redemption of the 7.625% Notes. | |||||||||||||||||||||
Term loans under the Real Estate Credit Agreement bear interest, at the option of the Company, based on the LIBOR plus 2.50% or the Base Rate (as described below) plus 1.50%. The Base Rate is the highest of (i) the Federal Funds rate plus 0.50%, (ii) the Bank of America prime rate, and (iii) one month LIBOR plus 1.0%. The Company is required to make quarterly principal payments of 1.25% of the initial amount of each loan on a twenty year repayment schedule, with a balloon repayment of the outstanding principal amount of loans due in September 2023, subject to an earlier maturity if the Company’s existing senior secured credit facility matures or is not otherwise refinanced by certain dates. The Company can voluntarily prepay any loan in whole or in part any time without premium or penalty. | |||||||||||||||||||||
The representations and covenants contained in the Real Estate Credit Agreement are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated current ratio, minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the Real Estate Credit Agreement. In addition, certain other covenants could restrict the Company’s ability to incur additional debt, pay dividends or acquire or dispose of assets. | |||||||||||||||||||||
The Real Estate Credit Agreement also contains events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, the Company could be required to immediately repay all amounts outstanding under the Real Estate Credit Agreement. | |||||||||||||||||||||
Borrowings under the Real Estate Credit Agreement are guaranteed by each operating dealership subsidiary of the Company whose real estate is financed under the Real Estate Credit Agreement, and collateralized by first priority liens, subject to certain permitted exceptions, on all of the real property financed thereunder. | |||||||||||||||||||||
Mortgage Financing | |||||||||||||||||||||
During the year ended December 31, 2013, we also entered into five fixed rate mortgage notes payable, which were collateralized by the related real estate at five of our owned dealership locations. The total initial principal amount of the mortgage notes payable was $52.5 million. In connection with our entrance into these mortgage notes payable, we paid approximately $0.5 million in debt issuance costs, which were capitalized and are being amortized to Other Interest Expense over the terms of the related mortgage notes payable. All five mortgages were financed by the captive finance companies affiliated with two of our manufacturing partners, and are classified as "Captive Mortgages" in the table below. | |||||||||||||||||||||
We have a master loan agreement with Wells Fargo Bank, N.A. (“Wells Fargo”, and the master loan agreement being referred to as the “Master Loan Agreement”). As of December 31, 2013, our obligation under the Master Loan Agreement consists of a single mortgage for certain of our properties in St. Louis, Missouri. | |||||||||||||||||||||
The Master Loan Agreement also contains customary representations and warranties and the guarantees under such agreements contain negative covenants, including, among other things, covenants not to, with permitted exceptions, (i) incur any additional debt; (ii) create any additional liens on the Property (as defined in the Master Loan Agreement); and (iii) enter into any sale-leaseback transactions in connection with the underlying properties. | |||||||||||||||||||||
Below is a summary of our outstanding mortgage notes payable, the carrying values of the related collateralized real estate, and years of maturity as of December 31, 2013 and 2012: | |||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||
Mortgage Agreement | Aggregate Principal Outstanding | Carrying Value of Collateralized Related Real Estate | Maturity Dates | Aggregate Principal Outstanding | Carrying Value of Collateralized Related Real Estate | Maturity Dates | |||||||||||||||
Real Estate Credit Agreement | $ | 75 | $ | 131 | 2023 | $ | — | $ | — | ||||||||||||
Master Loan Agreement | 18.4 | 34.3 | 2015 | 19.7 | 35.5 | 2015 | |||||||||||||||
Captive Mortgages | 122.7 | 157.5 | 2018-2023 | 73.2 | 81.4 | 2018-2023 | |||||||||||||||
Other mortgage debt | 25.4 | 38.6 | 2018-2022 | 26 | 35.5 | 2018-2022 | |||||||||||||||
Total | $ | 241.5 | $ | 361.4 | $ | 118.9 | $ | 152.4 | |||||||||||||
Subordinated Note Repurchases | |||||||||||||||||||||
Our board of directors has authorized us, from time to time, to repurchase various of our senior subordinated notes in open market purchases or privately negotiated transactions. The decision to repurchase our senior subordinated notes is dependent upon prevailing market conditions, our liquidity position, applicable limitations in any agreements to which we are a party, and other factors. Currently, the Restated Credit Agreement allows us to purchase at least $50.0 million of our debt securities per calendar year, subject to increase based on availability under our senior secured credit facilities. During 2013, we did not repurchase any of our senior subordinated notes. | |||||||||||||||||||||
As of December 31, 2013, we had $300.0 million of our 8.375% subordinated notes outstanding. | |||||||||||||||||||||
Stock Repurchase and Dividend Restrictions | |||||||||||||||||||||
Pursuant to the indentures governing our 8.375% Notes and the agreements governing our senior secured credit facilities, our ability to repurchase shares of our common stock and pay cash dividends is limited to $88.3 million as of December 31, 2013, with an additional $10.0 million available to repurchase common stock only. | |||||||||||||||||||||
Covenants | |||||||||||||||||||||
We are subject to a number of covenants in our various debt and lease agreements, including those described below. We were in compliance with all of our covenants throughout 2013. Failure to comply with any of our debt covenants would constitute a default under the relevant debt agreements, which would entitle the lenders under such agreements to terminate our ability to borrow under the relevant agreements and accelerate our obligations to repay outstanding borrowings, if any, unless compliance with the covenants is waived. In many cases, defaults under one of our agreements could trigger cross default provisions in our other agreements. If we are unable to remain in compliance with our financial or other covenants, we would be required to seek waivers or modifications of our covenants from our lenders, or we would need to raise debt and/or equity financing or sell assets to generate proceeds sufficient to repay such debt. We cannot give any assurance that we would be able to successfully take any of these actions on terms, or at times, that may be necessary or desirable. | |||||||||||||||||||||
The representations and covenants contained in the Restated Credit Agreement are customary for financing transactions of this nature including, among others, a requirement to comply with a minimum consolidated current ratio and consolidated fixed charge coverage ratio (each as defined in the Restated Credit Agreement) and a maximum consolidated total lease adjusted leverage ratio, in each case as set out in the Restated Credit Agreement. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. | |||||||||||||||||||||
The Restated Credit Agreement also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. In certain instances, an event of default under either the revolving credit facility or the used vehicle revolving floor plan facility could be, or result in, an event of default under the new vehicle floor plan facility, and vice versa. Upon the occurrence of an event of default, we could be required to immediately repay all amounts outstanding under the applicable facility. | |||||||||||||||||||||
Our guarantees under the Master Loan Agreement also require compliance with certain financial covenants, including a consolidated current ratio, consolidated fixed charge coverage ratio and an adjusted net worth calculation. | |||||||||||||||||||||
Certain of our lease agreements also require compliance with various financial covenants and incorporate by reference the | |||||||||||||||||||||
financial covenants set forth in the Restated Credit Agreement. A breach of any of these covenants could immediately give rise to certain landlord remedies under our various lease agreements, the most severe of which include the following: (a) termination of the applicable lease and/or other leases with the same or an affiliated landlord under a cross-default provision, (b) eviction from the premises; and (c) the landlord having a claim for various damages. | |||||||||||||||||||||
Asbury Automotive Group, Inc. is a holding company with no independent assets or operations. For all periods presented, our 8.375% Notes and our 7.625% Notes have been fully and unconditionally guaranteed, on a joint and several basis, by substantially all of our subsidiaries. Any subsidiaries which have not guaranteed such notes are “minor” (as defined in Rule 3-10(h) of Regulation S-X). As of December 31, 2013, there were no significant restrictions on the ability of our subsidiaries to distribute cash to us or our guarantor subsidiaries. |
Financial_Instruments_and_Fair
Financial Instruments and Fair Value | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||
Financial Instruments and Fair Value | ' | ||||||||||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE | |||||||||||||||
In determining fair value, we use various valuation approaches, including market, income and/or cost approaches. Accounting standards establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows: | |||||||||||||||
Level 1-Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. | |||||||||||||||
Level 2-Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Assets and liabilities utilizing Level 2 inputs include cash flow swap instruments and exchange-traded debt securities that are not actively traded or do not have a high trading volume. | |||||||||||||||
Level 3-Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Asset and liability measurements utilizing Level 3 inputs include those used in estimating fair value of non-financial assets and non-financial liabilities in purchase acquisitions and those used in assessing impairment of manufacturer franchise rights. | |||||||||||||||
The availability of observable inputs can vary and is affected by a wide variety of factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment required to determine fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement. | |||||||||||||||
Fair value is a market-based measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, our assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. We use inputs that are current as of the measurement date, including during periods of significant market fluctuations. | |||||||||||||||
Financial instruments consist primarily of cash and cash equivalents, contracts-in-transit, accounts receivable, cash surrender value of corporate-owned life insurance policies, accounts payable, floor plan notes payable, subordinated long-term debt, mortgage notes payable and interest rate swap agreements. The carrying values of our financial instruments, with the exception of subordinated long-term debt, approximate fair value due to (i) their short-term nature, (ii) recently completed market transactions or (iii) existence of variable interest rates, which approximate market rates. The fair market value of our subordinated long-term debt is based on reported market prices which reflect Level 2 inputs. Level 2 inputs are valuations based on quoted market prices in markets that are not active or do not have a high trading volume. A summary of the carrying values and fair values of our 8.375% Notes and our 7.625% Notes is as follows: | |||||||||||||||
As of December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||
Carrying Value: | |||||||||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 309.2 | $ | 200 | |||||||||||
7.625% Senior Subordinated Notes due 2017 | — | 143.2 | |||||||||||||
Total carrying value | $ | 309.2 | $ | 343.2 | |||||||||||
Fair Value: | |||||||||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 336.8 | $ | 221.5 | |||||||||||
7.625% Senior Subordinated Notes due 2017 | — | 147.5 | |||||||||||||
Total fair value | $ | 336.8 | $ | 369 | |||||||||||
In November 2013, we entered into an interest rate swap agreement with a notional principal amount of $75.0 million. This swap was designed to provide a hedge against changes in variable rate cash flows through maturity in September 2023. The notional value of this swap is reducing over its remaining term to $38.7 million at maturity. | |||||||||||||||
We are also party to an interest rate swap agreement that had a notional principal amount of $18.4 million as of December 31, 2013. This swap is designed to provide a hedge against changes in variable interest rate cash flows through maturity in October 2015. The notional value of this swap is reducing over the remaining term to $16.1 million at maturity. | |||||||||||||||
Both of our interest rate swaps qualify for cash flow hedge accounting treatment and do not, and will not, contain any ineffectiveness. | |||||||||||||||
Information about the effect of derivative instruments on the accompanying Consolidated Statements of Income, including the impact on Accumulated Other Comprehensive Income ("AOCI") (in millions): | |||||||||||||||
For the Year Ended December 31, | Derivative in Cash Flow Hedging Relationships | Results | Location of Results | Amount Reclassified from AOCI to Earnings–Active Swaps | Amount Reclassified from AOCI to Earnings–Terminated Swaps | Ineffective Results Recognized in Earnings | Location of | ||||||||
Recognized | Reclassified from | Ineffective Results | |||||||||||||
in AOCI | AOCI to Earnings | ||||||||||||||
(Effective | |||||||||||||||
Portion) | |||||||||||||||
2013 | Interest rate swaps | $0.40 | Swap interest expense | ($0.50) | ($2.00) | $— | N/A | ||||||||
2012 | Interest rate swaps | ($0.30) | Swap interest expense | ($0.20) | ($4.80) | $— | N/A | ||||||||
2011 | Interest rate swaps | ($3.10) | Swap interest expense | ($4.10) | ($0.30) | $— | N/A | ||||||||
On the basis of yield curve conditions as of December 31, 2013, we anticipate that the amount expected to be reclassified out of AOCI into earnings in the next 12 calendar months will be a loss of $1.9 million. | |||||||||||||||
Fair value estimates reflect a credit adjustment to the discount rate applied to all expected cash flows under the swap. Other than that assumption, all other inputs reflect Level 2 inputs. | |||||||||||||||
Information about amounts reclassified out of AOCI | (In millions) | ||||||||||||||
Accumulated other comprehensive loss—December 31, 2012 | $ | (1.6 | ) | ||||||||||||
Change in fair value of cash flow swaps | 0.9 | ||||||||||||||
Amortization of terminated cash flow swaps | 2 | ||||||||||||||
Total amount reclassified to swap interest expense | 2.9 | ||||||||||||||
Income tax impact associated with cash flow swaps | (1.1 | ) | |||||||||||||
Accumulated other comprehensive income—December 31, 2013 | $ | 0.2 | |||||||||||||
Market Risk Disclosures as of December 31, 2013: | |||||||||||||||
Instruments entered into for trading purposes—None | |||||||||||||||
Instruments entered into for hedging purposes (in millions)— | |||||||||||||||
Type of Derivative | Notional Size | Underlying Rate | Expiration | Fair Value | |||||||||||
Interest Rate Swap* | $ | 75 | 1 month LIBOR | Sep-23 | $ | 0.7 | |||||||||
Interest Rate Swap* | $ | 18.4 | 1 month LIBOR | Oct-15 | $ | (0.4 | ) | ||||||||
____________________________ | |||||||||||||||
* The total fair value of our swaps is a $0.3 million net asset, of which $1.9 million is included in Accounts Payable and Accrued Liabilities, $0.1 million is included in Other Long-Term Liabilities and $2.3 million is included in Other Long-Term Assets on the accompanying Consolidated Balance Sheet. | |||||||||||||||
Market Risk Disclosures as of December 31, 2012: | |||||||||||||||
Instruments entered into for trading purposes—None | |||||||||||||||
Instruments entered into for hedging purposes (in millions)— | |||||||||||||||
Type of Derivative | Notional Size | Underlying Rate | Expiration | Fair Value | |||||||||||
Interest Rate Swap* | $ | 19.7 | 1 month LIBOR | Oct-15 | $ | (0.6 | ) | ||||||||
____________________________ | |||||||||||||||
* The total fair value of our swap is a $0.6 million net liability, of which $0.3 million is included in Accounts Payable and Accrued Liabilities and $0.3 million is included in Other Long-Term Liabilities, respectively, on the accompanying Consolidated Balance Sheet. | |||||||||||||||
Valuation Techniques | |||||||||||||||
The fair value of cash flow swaps is calculated as the present value of expected future cash flows, determined on the basis of forward interest rates and present value factors. As such, the carrying amounts for these swaps are designated to be Level 2 fair values and totaled $0.3 million and $(0.6) million as of December 31, 2013 and 2012, respectively. The carrying value of these swaps is included in Other Long-Term Liabilities, Other Long-Term Assets and Other Current Liabilities on the accompanying Consolidated Balance Sheet as of December 31, 2013. | |||||||||||||||
The fair value of assets held for sale used to determine the impairment expenses we incurred in 2012 and 2011 were determined with the assistance of third-party broker opinions of value and third-party desktop appraisals and are designated to be Level 2 fair values. | |||||||||||||||
Other Financial Instruments | |||||||||||||||
In connection with the sale of our 3% Convertible Notes in March 2007, we entered into separate warrant transactions whereby we sold to Goldman, Sachs & Co. and Deutsche Bank AG, London Branch (collectively, the “Counterparties”) warrants to acquire, subject to customary anti-dilution adjustments, shares of our common stock at an initial strike price of $45.09 per share, which was a 62.50% premium over the market price of our common stock at the time of pricing. As of March 31, 2013, the strike price was $44.74 as a result of certain dividend payments. These warrants expired in a series of tranches through April 2013. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Income Taxes | ' | |||||||||||
INCOME TAXES | ||||||||||||
The components of income tax expense from continuing operations are as follows: | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 43.2 | $ | 33 | $ | 15.5 | ||||||
State | 4.1 | 1.9 | (0.1 | ) | ||||||||
Subtotal | 47.3 | 34.9 | 15.4 | |||||||||
Deferred: | ||||||||||||
Federal | 12 | 11.2 | 9.6 | |||||||||
State | 4.9 | 3.9 | 3.7 | |||||||||
Subtotal | 16.9 | 15.1 | 13.3 | |||||||||
Total | $ | 64.2 | $ | 50 | $ | 28.7 | ||||||
A reconciliation of the statutory federal rate to the effective tax rate from continuing operations is as follows: | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Provision at the statutory rate | $ | 57.9 | $ | 46.7 | $ | 26.3 | ||||||
Increase (decrease) resulting from: | ||||||||||||
State income tax expense, net | 5.8 | 3.5 | 2.4 | |||||||||
(Gain) loss on corporate owned life insurance policies | — | (0.5 | ) | 0.1 | ||||||||
Tax credits received | — | — | (0.5 | ) | ||||||||
Other | 0.5 | 0.3 | 0.4 | |||||||||
Provision for income taxes | $ | 64.2 | $ | 50 | $ | 28.7 | ||||||
The tax effects of temporary differences representing deferred tax assets (liabilities) result principally from the following: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Reserves and accruals | $ | 23.8 | $ | 26.2 | ||||||||
Net operating loss (“NOL”) carryforwards | 0.3 | 1.8 | ||||||||||
Goodwill amortization | 18.5 | 27.2 | ||||||||||
Depreciation | (20.8 | ) | (18.4 | ) | ||||||||
Interest rate swaps | (0.1 | ) | 1 | |||||||||
Other | 0.8 | 0.6 | ||||||||||
Net deferred tax asset | $ | 22.5 | $ | 38.4 | ||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Balance sheet classification: | ||||||||||||
Deferred tax assets: | ||||||||||||
Current | $ | 11 | $ | 11.9 | ||||||||
Long-term | 50.3 | 66.5 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Current | (1.6 | ) | (1.0 | ) | ||||||||
Long-term | (37.2 | ) | (39.0 | ) | ||||||||
Net deferred tax asset | $ | 22.5 | $ | 38.4 | ||||||||
As of December 31, 2013, our state operating losses of $0.4 million, before federal benefit, are set to expire, or to be used, between 2013 and 2021. | ||||||||||||
As of December 31, 2013, the net amount of our unrecognized tax benefits was $0.3 million, all of which, if recognized, would affect our effective tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: | ||||||||||||
Gross Liability for | ||||||||||||
Unrecognized Tax | ||||||||||||
Benefits | ||||||||||||
In Millions | ||||||||||||
Balance at January 1, 2011 | $ | 1.2 | ||||||||||
Additions for Tax Positions of Prior Year | 0.3 | |||||||||||
Reduction for Lapse of Statute of Limitations | (0.5 | ) | ||||||||||
Balance at December 31, 2011 | 1 | |||||||||||
Reduction for Lapse of Statute of Limitations | (0.7 | ) | ||||||||||
Balance at December 31, 2012 | 0.3 | |||||||||||
Reduction for Lapse of Statute of Limitations | — | |||||||||||
Balance at December 31, 2013 | $ | 0.3 | ||||||||||
We recognize interest and penalties related to unrecognized tax benefits in income tax expense. No amount for interest or penalties are included in the liability for unrecognized tax benefits as of December 31, 2013. | ||||||||||||
The statute of limitations related to the consolidated Federal income tax return is closed for all tax years up to and including 2009. | ||||||||||||
The expiration of the statute of limitations related to the various state income tax returns that we and our subsidiaries file varies by state. The 2009 through 2012 tax years generally remain subject to examination by most state tax authorities. We do not anticipate any material changes related to unrecognized tax benefits, individually or in the aggregate, to occur within the next twelve months. |
Other_LongTerm_Liabilities
Other Long-Term Liabilities | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Other Long-Term Liabilities | ' | |||||||
Other long-term liabilities consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accrued finance and insurance chargebacks | $ | 12.2 | $ | 8.1 | ||||
Deferred rent | 6.2 | 6.6 | ||||||
Unclaimed property | 1.1 | 1 | ||||||
Other | 1 | 1.7 | ||||||
Other long-term liabilities | $ | 20.5 | $ | 17.4 | ||||
Discontinued_Operations_and_Di
Discontinued Operations and Divestitures | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Discontinued Operations and Divestitures | ' | |||||||||||
DISCONTINUED OPERATIONS AND DIVESTITURES | ||||||||||||
During the year ended December 31, 2013, we sold one franchise (one dealership location) that was classified as discontinued operations. As of December 31, 2013, there were no franchises pending disposition. Operating expenses in the table below include rent and other expenses of idle facilities previously associated with businesses sold or closed prior to December 31, 2013. | ||||||||||||
The following tables provide further information regarding our discontinued operations as of December 31, 2013, and includes the results of businesses sold prior to December 31, 2013: | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions, except franchise data) | ||||||||||||
Franchises: | ||||||||||||
Mid-line import | 1 | 1 | 2 | |||||||||
Heavy trucks | — | — | 10 | |||||||||
Luxury | — | 3 | 4 | |||||||||
Total | 1 | 4 | 16 | |||||||||
Revenues | $ | 3.8 | $ | 113.1 | $ | 231.9 | ||||||
Cost of sales | 3.4 | 94.4 | 196.9 | |||||||||
Gross profit | 0.4 | 18.7 | 35 | |||||||||
Operating expenses | 2.1 | 20.4 | 34.9 | |||||||||
Impairment expenses | — | 2 | — | |||||||||
(Loss) income from operations | (1.7 | ) | (3.7 | ) | 0.1 | |||||||
Other expense, net | — | (0.2 | ) | (1.1 | ) | |||||||
Gain on disposition | 14.6 | 2.1 | 35.9 | |||||||||
Income (loss) before income taxes | 12.9 | (1.8 | ) | 34.9 | ||||||||
Income tax (expense) benefit | (4.9 | ) | 0.7 | (13.5 | ) | |||||||
Discontinued operations, net of tax | $ | 8 | $ | (1.1 | ) | $ | 21.4 | |||||
Supplemental_Cash_Flow_Informa
Supplemental Cash Flow Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Supplemental Cash Flow Information [Abstract] | ' | |||||||||||
Supplemental Cash Flow Information | ' | |||||||||||
SUPPLEMENTAL CASH FLOW INFORMATION | ||||||||||||
During the years ended December 31, 2013, 2012 and 2011, we made interest payments, including amounts capitalized, totaling $52.4 million, $46.1 million and $52.3 million, respectively. Included in these interest payments are $12.2 million, $10.5 million and $11.0 million, of floor plan interest payments for the years ended December 31, 2013, 2012 and 2011, respectively. | ||||||||||||
During the years ended December 31, 2013, 2012 and 2011, we made income tax payments, net of refunds received, totaling $60.1 million, $32.8 million and $15.4 million, respectively. | ||||||||||||
During the years ended December 31, 2013, 2012 and 2011, we sold $13.8 million, $18.7 million and $22.6 million, respectively, of trade receivables, at a total discount of $0.3 million, $0.4 million and $0.6 million, respectively. | ||||||||||||
During the years ended December 31, 2013, 2012 and 2011, we transferred $61.9 million, $54.6 million and $36.4 million, respectively, of loaner vehicles from Other Current Assets to Inventory on our Consolidated Balance Sheets. | ||||||||||||
Until February 2012, we sponsored the Asbury Automotive Wealth Accumulation Plan (the “Deferred Compensation Plan”) wherein eligible employees, generally those at senior levels, could elect to defer a portion of their annual compensation. In February 2012, our Board of Directors elected to terminate the Deferred Compensation Plan. During the year ended December 31, 2013, we (i) received a $7.8 million lump sum distribution as a result of the termination of the Deferred Compensation Plan and (ii) used these proceeds to relieve our corresponding $7.8 million total liability to the Deferred Compensation Plan's participants. | ||||||||||||
The following items are included in Other Adjustments, net to reconcile net income to cash flow from operating activities: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Accelerated rent expense associated with abandoned rental properties | $ | — | $ | 0.7 | $ | 0.2 | ||||||
Amortization of deferred financing fees | 2.4 | 2.5 | 2.7 | |||||||||
Convertible debt discount amortization | — | 0.4 | 0.8 | |||||||||
Other individually immaterial items | 0.6 | 2.4 | 0.2 | |||||||||
Other adjustments, net | $ | 3 | $ | 6 | $ | 3.9 | ||||||
Lease_Obligations
Lease Obligations | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Leases Obligations | ' | |||
LEASE OBLIGATIONS | ||||
We lease various facilities, real estate and equipment primarily under operating lease agreements, most of which have remaining terms from one to twenty years. Certain of our leases contain renewal options and rent escalation clauses. We record rent expense on a straight-line basis over the life of the lease for lease agreements where the rent escalates at fixed rates over time. Rent expense from continuing operations totaled $32.9 million, $35.5 million and $36.3 million for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, we had one significant capital lease obligation totaling approximately $3.7 million. This lease was entered into in 2011, and is being amortized over 20 years. | ||||
During the year ended December 31, 2013, we entered into four transactions in which we purchased various previously leased real estate for a total purchase price of $35.7 million. These transactions included the termination of the related lease obligations, resulting in losses of $5.5 million, which is included in Other Operating Expense, net in our Consolidated Statement of Income for the year ended December 31, 2013. | ||||
During the year ended December 31, 2012, we entered into four transactions in which we purchased various previously | ||||
leased real estate for a total purchase price of $17.5 million. These transactions included the termination of the related lease | ||||
obligations, resulting in losses of $1.8 million, which is included in Other Operating Expense, net on our Consolidated Statement of Income for year ended December 31, 2012. | ||||
During the year ended December 31, 2011, we entered into two transactions in which we purchased various previously leased real estate for a total purchase price of $30.3 million. One of the transactions included a termination of a lease obligation for property not currently used in our operations, resulting in a loss of $1.0 million, which is included in Other Operating Expense, net on our Consolidated Statement of Income for year ended December 31, 2011. | ||||
Future minimum payments under long-term, non-cancellable operating leases as of December 31, 2013, are as follows: | ||||
Total | ||||
(In millions) | ||||
2014 | $ | 31.3 | ||
2015 | 29.3 | |||
2016 | 28.3 | |||
2017 | 26.1 | |||
2018 | 23.1 | |||
Thereafter | 92.7 | |||
Total minimum lease payments | $ | 230.8 | ||
Certain of our lease agreements include financial covenants and incorporate by reference the financial covenants set forth in the Restated Credit Agreement. A breach of any of these covenants could immediately give rise to certain landlord remedies under our various lease agreements, the most severe of which include the following: (a) termination of the applicable lease and/or other leases with the same or an affiliated landlord under a cross-default provision, (b) eviction from the premises; and (c) the landlord having a claim for various damages. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2013 | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Commitments and Contingencies | ' |
COMMITMENTS AND CONTINGENCIES | |
Our dealerships are party to dealer and framework agreements with applicable vehicle manufacturers. In accordance with these agreements, each dealership has certain rights and is subject to restrictions typical in the industry. The ability of these manufacturers to influence the operations of the dealerships or the loss of any of these agreements could have a materially negative impact on our operating results. | |
In some instances, manufacturers may have the right, and may direct us, to implement costly capital improvements to dealerships as a condition to entering into, renewing or extending franchise agreements with them. Manufacturers also typically require that their franchises meet specific standards of appearance. These factors, either alone or in combination, could cause us to use our financial resources on capital projects that we might not have planned for or otherwise determined to undertake. | |
From time to time, we and our dealerships are or may become involved in various claims relating to, and arising out of, our business and our operations. These claims may involve, but not be limited to, financial and other audits by vehicle manufacturers, lenders and certain federal, state and local government authorities, which have historically related primarily to (a) incentive and warranty payments received from vehicle manufacturers, or allegations of violations of manufacturer agreements or policies, (b) compliance with lender rules and covenants and (c) payments made to government authorities relating to federal, state and local taxes, as well as compliance with other government regulations. Claims may also arise through litigation, government proceedings and other dispute resolution processes. Such claims, including class actions, could relate to, but may not be limited to, the practice of charging administrative fees and other fees and commissions, employment-related matters, truth-in-lending and other dealer assisted financing obligations, contractual disputes, actions brought by governmental authorities and other matters. We evaluate pending and threatened claims and establish loss contingency reserves based upon outcomes we currently believe to be probable and reasonably estimable. | |
We believe we have adequately accrued for the potential impact of loss contingencies that are probable and reasonably estimable. Based on our review of the various types of claims currently known to us, there is no indication of material reasonably possible losses in excess of amounts accrued in the aggregate. We currently do not anticipate that any known claim will materially adversely affect our financial condition, liquidity or results of operations. However, the outcome of any matter cannot be predicted with certainty, and an unfavorable resolution of one or more matters presently known or arising in the future could have a material adverse effect on our financial condition, liquidity or results of operations. | |
A significant portion of our business involves the sale of vehicles, parts or vehicles composed of parts that are manufactured outside the United States. As a result, our operations are subject to customary risks of importing merchandise, including fluctuations in the relative values of currencies, import duties, exchange controls, trade restrictions, work stoppages and general political and socio-economic conditions in foreign countries. The United States or the countries from which our products are imported may, from time to time, impose new quotas, duties, tariffs or other restrictions, or adjust presently prevailing quotas, duties or tariffs, which may affect our operations and our ability to purchase imported vehicles and/or parts at reasonable prices. | |
Substantially all of our facilities are subject to federal, state and local provisions regarding the discharge of materials into the environment. Compliance with these provisions has not had, nor do we expect such compliance to have, any material effect upon our capital expenditures, net earnings, financial condition, liquidity or competitive position. We believe that our current practices and procedures for the control and disposition of such materials comply with applicable federal, state and local requirements. No assurances can be provided, however, that future laws or regulations, or changes in existing laws or regulations, would not require us to expend significant resources in order to comply therewith. | |
We had $14.6 million of letters of credit outstanding as of December 31, 2013, which are required by certain of our insurance providers. In addition, as of December 31, 2013, we maintained a $5.0 million surety bond line in the ordinary course of our business. Our letters of credit and surety bond line are considered to be off balance sheet arrangements. | |
Our other material commitments include (i) floor plan notes payable, (ii) operating leases, (iii) long-term debt and (iv) interest on long-term debt, as described elsewhere herein. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
RELATED PARTY TRANSACTIONS | |
During the years ended December 31, 2013, 2012 and 2011, we were party to certain agreements with a former member of our board of directors and a current member of our management team. These agreements primarily involved long−term operating leases of dealership facilities. We believe that the rental transactions related to these agreements were on terms comparable to those that could be obtained from unaffiliated third parties. For the years ended December 31, 2013, 2012 and 2011, we made rental payments totaling $2.2 million, $2.2 million and $2.3 million, respectively, to these individuals or entities controlled by these individuals. |
Sharebased_Compensation_and_Em
Share-based Compensation and Employee Benefit Plans | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation Related Costs [Abstract] | ' | ||||||||||||
Share-based Compensation and Employee Benefit Plans | ' | ||||||||||||
SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS | |||||||||||||
We have established three share-based compensation plans (the “Plans”) under which we have historically granted non-qualified stock options, performance share units, restricted share units and shares of restricted stock to our directors, officers and employees at fair market value on the date of the grant. Stock options generally vest ratably over three years from the date of grant and expire ten years from the date of grant. Performance share units vest after three years or ratably over three years from the date of grant for performance share units granted to date. The actual number of shares earned by a holder of performance share units may range from 0% to 150% of the target number of shares to be granted to the holder, depending on the achievement of certain performance criteria over a defined period of time. Restricted stock provides the holder voting and forfeitable dividend rights prior to vesting. Restricted stock grants to our officers and employees vest ratably over three years from the date of grant, while restricted stock grants to members of our board of directors vest immediately upon the date of grant. Restricted share units vest ratably over three years from the date of grant. We have granted a total of 5.8 million non-qualified stock options, 1.6 million performance share units, 1.3 million shares of restricted stock and 0.1 million of restricted share units. In addition, there were approximately 1.3 million share-based awards available for grant under our share-based compensation plans as of December 31, 2013. | |||||||||||||
We issue new shares of our common stock upon the exercise of stock options or vesting of performance share units, restricted stock or restricted share units. In addition, in connection with the vesting of performance share units, restricted stock or restricted share units, we expect to repurchase a portion of the shares issued equal to the amount of employee income tax withholding. | |||||||||||||
The fair value of each option award was estimated on the date of grant using the Black Scholes option valuation model. The fair value of each performance share unit and restricted stock award was calculated using the closing market price of our common stock on the date of grant. Expected volatilities are based on the historical volatility of our common stock. We use historical data to estimate the rate of option exercises and employee turnover within the valuation model. The expected term of options granted represents the period of time that the related options are expected to be outstanding. The risk-free rate for periods within the contractual life of the option is based on the U.S. Treasury yield curve in effect at the time of grant. | |||||||||||||
We have recognized $9.0 million ($3.5 million tax benefit), $7.1 million ($2.7 million tax benefit) and $8.8 million ($3.4 million tax benefit) in stock-based compensation expense for the years ended December 31, 2013, 2012 and 2011, respectively. As of December 31, 2013, there was $9.6 million of total unrecognized share-based compensation expense related to non-vested share-based awards granted under the Plans, and we expect to recognize $5.2 million of this expense in 2014, $2.5 million in 2015 and $1.7 million in 2016. | |||||||||||||
A summary of options outstanding and exercisable under the Plans as of December 31, 2013, changes during the year then ended and changes during the years ended December 31, 2012 and 2011 is presented below: | |||||||||||||
Stock | Weighted Average | Weighted | Aggregate Intrinsic | ||||||||||
Options | Exercise Price | Average | Value* (in millions) | ||||||||||
Remaining | |||||||||||||
Contractual | |||||||||||||
Term | |||||||||||||
Options outstanding—December 31, 2010 | 1,538,978 | $ | 7.37 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (777,982 | ) | 8.48 | ||||||||||
Expired / Forfeited | (68,001 | ) | 4.82 | ||||||||||
Options outstanding—December 31, 2011 | 692,995 | $ | 6.38 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (644,241 | ) | 6.01 | ||||||||||
Expired / Forfeited | (28,501 | ) | 9.19 | ||||||||||
Options outstanding—December 31, 2012 | 20,253 | $ | 14.1 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (12,086 | ) | 14.13 | ||||||||||
Expired / Forfeited | — | — | |||||||||||
Options outstanding—December 31, 2013 | 8,167 | $ | 14.05 | 1 | $ | 0.3 | |||||||
Options exercisable—December 31, 2013 | 8,167 | $ | 14.05 | 1 | $ | 0.3 | |||||||
____________________________ | |||||||||||||
* Based on the closing price of our common stock on December 31, 2013, which was $53.74 per share. | |||||||||||||
Net cash received from option exercises for the year ended December 31, 2013 was $0.2 million. The actual intrinsic value of options exercised during the years ended December 31, 2013, 2012 and 2011 was $0.4 million, $13.2 million and $8.8 million, respectively. The actual tax benefit realized for the tax deductions from option exercises during the years ended December 31, 2013 and 2012 was $0.1 million and $4.4 million, respectively. | |||||||||||||
A summary of performance share units and restricted stock as of December 31, 2013, changes during the year then ended and changes during the years ended December 31, 2012 and 2011 is presented below: | |||||||||||||
Shares | Weighted Average Grant Date | ||||||||||||
Fair Value | |||||||||||||
Performance Share Units—December 31, 2010 | 378,126 | $ | 12.48 | ||||||||||
Granted | 146,480 | 18.92 | |||||||||||
Performance estimate | (42,242 | ) | 17.81 | ||||||||||
Vested | (218,430 | ) | 14.4 | ||||||||||
Forfeited | (20,784 | ) | 12.31 | ||||||||||
Performance Share Units—December 31, 2011 | 243,150 | $ | 14.91 | ||||||||||
Granted | 109,400 | 25.42 | |||||||||||
Performance estimate | 65,247 | 22.05 | |||||||||||
Vested | (115,483 | ) | 14.7 | ||||||||||
Forfeited | (19,550 | ) | 14.76 | ||||||||||
Performance Share Units—December 31, 2012 | 282,764 | $ | 20.82 | ||||||||||
Granted | 143,710 | 34.98 | |||||||||||
Performance estimate | 48,350 | 34.98 | |||||||||||
Vested | (144,711 | ) | 18.35 | ||||||||||
Forfeited | (400 | ) | 25.42 | ||||||||||
Performance Share Units—December 31, 2013* | 329,713 | $ | 30.12 | ||||||||||
___________________________ | |||||||||||||
* Maximum of 335,098 issuable upon attaining certain performance metrics. | |||||||||||||
Each performance share unit provides an opportunity for the employee to receive a number of shares of our common stock based on our performance during a specified year period following the grant as measured against objective performance goals as determined by the compensation committee of our board of directors. The actual number of shares earned may range from 0% to 150% of the target number of shares depending upon achievement of the performance goals. | |||||||||||||
Shares | Weighted Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Restricted Stock—December 31, 2010 | 531,446 | $ | 12.19 | ||||||||||
Granted | 228,840 | 19.15 | |||||||||||
Vested | (270,742 | ) | 12.64 | ||||||||||
Forfeited | (45,276 | ) | 12.37 | ||||||||||
Restricted Stock—December 31, 2011 | 444,268 | $ | 16.08 | ||||||||||
Granted | 216,676 | 23.84 | |||||||||||
Vested | (179,675 | ) | 14.6 | ||||||||||
Forfeited | (44,428 | ) | 13.29 | ||||||||||
Restricted Stock—December 31, 2012 | 436,841 | $ | 19.55 | ||||||||||
Granted | 98,251 | 35.03 | |||||||||||
Vested | (157,220 | ) | 17.71 | ||||||||||
Forfeited | (11,748 | ) | 20.72 | ||||||||||
Restricted Stock—December 31, 2013 | 366,124 | $ | 25.79 | ||||||||||
Employee Retirement Plan | |||||||||||||
We sponsor the Asbury Automotive Retirement Savings Plan (the “Retirement Savings Plan”), a 401(k) plan, for eligible employees. Employees are eligible to participate in the Retirement Savings Plan on or after 90 days of service to the Company. Employees electing to participate in the Retirement Savings Plan may contribute up to 75% of their annual eligible compensation. IRS rules limited total participant contributions during 2013 to $17,500 or $23,000 if age 50 or more; however, we limit participant contributions for employees considered Highly Compensated Employees with an annual salary or base salary equal to or greater than $115,000 to $10,000 per year or $15,500 if age 50 or more. After one year of employment, we match 37.5% of employees' contributions up to 4% of their eligible compensation, with a maximum match of $1,725 per participant. Beginning on January 1, 2009, we suspended our matching contributions for Highly Compensated Employees with an annual salary equal to or greater than $115,000. Employer contributions vest by graded schedule over four years after the date of hire. Expenses from continuing operations related to employer matching contributions totaled $1.1 million, $0.5 million and $1.0 million for the years ended December 31, 2013, 2012 and 2011, respectively. | |||||||||||||
Deferred Compensation Plan | |||||||||||||
We have historically sponsored the Deferred Compensation Plan wherein eligible employees, generally those at senior levels, may elect to defer a portion of their annual compensation. In February 2012, our Board of Directors elected to terminate the Deferred Compensation Plan. During 2013, we (i) received a $7.8 million lump sum distribution as a result of the termination of the Deferred Compensation Plan and (ii) used these proceeds to relieve our corresponding $7.8 million total liability to the Deferred Compensation Plan's participants. |
Condensed_Quarterly_Revenues_a
Condensed Quarterly Revenues and Earnings (Unaudited) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Condensed Quarterly Revenues and Earnings (Unaudited) | ' | |||||||||||||||
CONDENSED QUARTERLY REVENUES AND EARNINGS (UNAUDITED): | ||||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
2012 | ||||||||||||||||
Revenues (1) | $ | 1,070.00 | $ | 1,161.50 | $ | 1,191.10 | $ | 1,219.20 | ||||||||
Gross profit (1) | $ | 184.5 | $ | 191.8 | $ | 194.2 | $ | 194.5 | ||||||||
Net income (1) | $ | 17.6 | $ | 21.1 | $ | 20.7 | $ | 22.8 | ||||||||
Net income per common share: | ||||||||||||||||
Basic (2) | $ | 0.57 | $ | 0.68 | $ | 0.67 | $ | 0.74 | ||||||||
Diluted (2) | $ | 0.56 | $ | 0.67 | $ | 0.66 | $ | 0.73 | ||||||||
2013 | ||||||||||||||||
Revenues (1) | $ | 1,225.40 | $ | 1,345.30 | $ | 1,390.30 | $ | 1,373.90 | ||||||||
Gross profit (1) | $ | 206.7 | $ | 222.6 | $ | 225.7 | $ | 222.5 | ||||||||
Net income | $ | 32.5 | $ | 27 | $ | 22.7 | 26.9 | |||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 1.05 | $ | 0.88 | $ | 0.74 | $ | 0.88 | ||||||||
Diluted | $ | 1.04 | $ | 0.87 | $ | 0.73 | $ | 0.87 | ||||||||
____________________________ | ||||||||||||||||
-1 | Quarterly revenues, gross profit and net income may not agree to previously reported amounts on Form 10-Q as a result of subsequent discontinued operations or reclassifications of amounts in order to conform to current presentation. | |||||||||||||||
-2 | The sum of income per common share for the four quarters does not equal total income per common share due to changes in the average number of shares outstanding during the respective periods. |
Subsequent_Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2013 | |
Subsequent Events [Abstract] | ' |
Subsequent Events | ' |
SUBSEQUENT EVENTS | |
In January 2014, we acquired the assets of one franchise in our existing market of Greenville, South Carolina, which we integrated with one of our existing dealership locations. We expect that this franchise will represent approximately $20.0 million of annualized revenues. |
Summary_of_Significant_Account1
Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Accounting Policies [Abstract] | ' | |
Segment Reporting, Policy [Policy Text Block] | ' | |
Segment Reporting | ||
We have determined that as a result of how we internally view our business, regularly review our financial data and operating metrics and allocate resources that we operate in one segment, automotive retail. Our Chief Operating Decision Maker is our Chief Executive Officer who manages the business, regularly reviews financial information and allocates resources on a consolidated basis. Our dealerships are components of our automotive retail segment and, therefore, are not segments themselves. | ||
Concentration Risk, Credit Risk, Policy [Policy Text Block] | ' | |
Business and Credit Concentration Risk | ||
Financial instruments, which potentially subject us to concentration of credit risk, consist principally of cash deposits. We maintain cash balances at financial institutions with strong credit ratings. Generally, amounts invested with financial institutions are in excess of FDIC insurance limits. | ||
We have substantial debt service obligations. As of December 31, 2013, we had total debt of $554.4 million, excluding floor plan notes payable on our accompanying Consolidated Balance Sheet. In addition, we and our subsidiaries have the ability to obtain additional debt from time to time to finance acquisitions, real property purchases, capital expenditures or for other purposes, although such borrowings are subject to the restrictions contained in the credit agreement governing our senior secured credit facilities and the indenture governing our 8.375% Senior Subordinated Notes due 2020 (the "8.375% Notes"). We will have substantial debt service obligations, consisting of required cash payments of principal and interest, for the foreseeable future. | ||
We are subject to operating and financial restrictions and covenants in certain of our leases and in our debt instruments, including the credit agreement governing our senior secured credit facilities, the 8.375% Notes indenture and the credit agreements covering our mortgage obligations. These agreements contain restrictions on, among other things, our ability to incur additional indebtedness, to create liens or other encumbrances, and to make certain payments (including dividends and repurchases of our shares and investments). These agreements may also require us to maintain compliance with certain financial and other ratios. Our failure to comply with any of these covenants in the future would constitute a default under the relevant agreement, which would, depending on the relevant agreement, (i) entitle the creditors under such agreement to terminate our ability to borrow under the relevant agreement and accelerate our obligations to repay outstanding borrowings; (ii) require us to apply our available cash to repay these borrowings; (iii) entitle the creditors under such agreement to foreclose on the property securing the relevant indebtedness; and/or (iv) prevent us from making debt service payments on certain of our other indebtedness, any of which would have a material adverse effect on our business, financial condition or results of operations. In many cases, a default under one of our debt or mortgage, agreements could trigger cross default provisions in one or more of our other debt or mortgages. | ||
A number of our dealerships are located on properties that we lease. Each of the leases governing such properties has certain covenants with which we must comply. If we fail to comply with the covenants under our leases, the respective landlords could terminate the leases and seek damages from us. | ||
Concentrations of credit risk with respect to contracts-in-transit and accounts receivable are limited primarily to automotive manufacturers and financial institutions. Credit risk arising from receivables from commercial customers is minimal due to the large number of customers comprising our customer base. | ||
A significant portion of our new vehicle sales are derived from a l | ||
Income Tax, Policy [Policy Text Block] | ' | |
Income Taxes | ||
We use the liability method to account for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using currently enacted tax rates. The effect on deferred assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will not be realized. | ||
Business Combinations Policy [Policy Text Block] | ' | |
Acquisitions | ||
Acquisitions are accounted for under the purchase method of accounting and the assets acquired and liabilities assumed are recorded at their fair value as of the acquisition dates. The operations of acquired dealerships are included in the accompanying Consolidated Statements of Income commencing on the date of acquisition. | ||
Basis of Presentation | ' | |
Basis of Presentation | ||
The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”), and reflect the consolidated accounts of Asbury Automotive Group, Inc. and our wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. In addition, certain reclassifications of amounts previously reported have been made to the accompanying Consolidated Financial Statements in order to conform to current presentation. | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and the reported amounts of revenues and expenses during the periods presented. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed quarterly and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying consolidated financial statements include, but are not limited to, those relating to inventory valuation reserves, reserves for chargebacks against revenue recognized from the sale of finance and insurance products, certain assumptions related to intangible and long-lived assets, reserves for insurance programs, reserves for certain legal or similar proceedings relating to our business operations, realization of deferred tax assets and reserves for estimated tax liabilities. | ||
Cash and Cash Equivalents, Policy [Policy Text Block] | ' | |
Cash and Cash Equivalents | ||
Cash and cash equivalents include investments in money market accounts and short-term certificates of deposit which have maturity dates of less than 90 days when purchased. | ||
Contracts-In-Transit | ' | |
Contracts-In-Transit | ||
Contracts-in-transit represent receivables from third-party finance companies for the portion of new and used vehicle purchase price financed by customers through sources arranged by us. Amounts due from contracts-in-transit are generally collected within two weeks following the date of sale of the related vehicle. | ||
Revenue Recognition | ' | |
Revenue Recognition | ||
Revenue from the sale of new and used vehicles (which excludes sales tax) is recognized upon the latest of delivery, passage of title, signing of the sales contract or approval of financing. Revenue from the sale of parts, service and collision repair work (which excludes sales tax) is recognized upon delivery of parts to the customer or at the time vehicle service or repair work is completed, as applicable. Manufacturer incentives and rebates, including manufacturer holdbacks, floor plan interest assistance and certain advertising assistance, are recognized as a reduction of new vehicle cost of sales at the time the related vehicles are sold. | ||
We receive commissions from third-party lending and insurance institutions for arranging customer financing and from the sale of vehicle service contracts, credit life insurance and disability insurance, and other insurance, to customers (collectively “F&I”). We may be charged back (“chargebacks”) for F&I commissions in the event a contract is prepaid, defaulted upon or terminated. F&I commissions are recorded at the time a vehicle is sold and a reserve for future chargebacks is established based on historical chargeback experience and the termination provisions of the applicable contract. F&I commissions, net of estimated future chargebacks, are included in Finance and Insurance, net in the accompanying Consolidated Statements of Income. | ||
Earnings per Common Share | ' | |
Earnings per Common Share | ||
Basic earnings per common share is computed by dividing net income by the weighted-average common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted-average common shares and common share equivalents outstanding during the period. For all periods presented, there were no adjustments to the numerator necessary to compute diluted earnings per share. | ||
Discontinued Operations | ' | |
Discontinued Operations | ||
Certain amounts reflected in the accompanying Consolidated Balance Sheets have been classified as Assets Held for Sale or Liabilities Associated with Assets Held for Sale, with such classification beginning on the date that the assets and associated liabilities were first considered held for sale. | ||
We report franchises and ancillary businesses as discontinued operations when it is evident that the operations and cash flows of a franchise or ancillary business being actively marketed for sale will be eliminated from our on-going operations and that we will not have any significant continuing involvement in its operations. We do not classify franchises as discontinued operations if we believe that the cash flows generated by the franchise will be replaced by expanded operations of our remaining franchises within the respective local market area. | ||
Amounts in the accompanying Consolidated Statements of Income for the years ended December 31, 2012 and December 31, 2011 have been reclassified to reflect the results of franchises sold or closed during 2013 as if we had classified those franchises as discontinued operations for all years presented. | ||
Statements of Cash Flows | ' | |
Statements of Cash Flows | ||
Borrowings and repayments of floor plan notes payable to a lender unaffiliated with the manufacturer from which we purchase a particular new vehicle ("Non-Trade"), and all floor plan notes payable relating to pre-owned vehicles (together referred to as "Floor Plan Notes Payable-Non-Trade"), are classified as financing activities on the accompanying Consolidated Statements of Cash Flows, with borrowings reflected separately from repayments. The net change in floor plan notes payable to a lender affiliated with the manufacturer from which we purchase a particular new vehicle (collectively referred to as “Floor Plan Notes Payable - Trade”) is classified as an operating activity on the accompanying Consolidated Statements of Cash Flows. Borrowings of floor plan notes payable associated with inventory acquired in connection with all acquisitions are classified as a financing activity. Cash flows related to floor plan notes payable included in operating activities differ from cash flows related to floor plan notes payable included in financing activities only to the extent that the former are payable to a lender affiliated with the manufacturer from which we purchased the related inventory, while the latter are payable to a lender not affiliated with the manufacturer from which we purchased the related inventory. Repayments of Floor Plan Notes Payable - Trade associated with divestitures are classified as an operating activity. Repayments of Floor Plan Notes Payable - Non-Trade associated with divestitures are classified as a financing activity. | ||
Loaner vehicles account for a significant portion of Other Current Assets. We acquire loaner vehicles either with available cash or through borrowings from manufacturer affiliated lenders. Loaner vehicles are initially used by our service department for only a short period of time (typically six to twelve months) before we seek to sell them. Therefore, we classify the acquisition of loaner vehicles and the related borrowings and repayments as operating activities in the accompanying Consolidated Statements of Cash Flows. The cash outflow to acquire loaner vehicles is presented in Other Current Assets in the accompanying Consolidated Statements of Cash Flows. Borrowings and repayments of loaner vehicle notes payable are presented in Accounts Payable and Accrued Liabilities in the accompanying Consolidated Statements of Cash Flows. When loaner vehicles are taken out of loaner status they are transferred to used vehicle inventory, which is reflected as a non-cash transfer in the accompanying Consolidated Statements of Cash Flows. The cash inflow from the sale of loaner vehicles is reflected in Inventories in the accompanying Consolidated Statements of Cash Flows. | ||
Inventory, Policy [Policy Text Block] | ' | |
Inventories | ||
Inventories are stated at the lower of cost or market. We use the specific identification method to value vehicle inventories and the “first-in, first-out” method (“FIFO”) to account for our parts inventories. We maintain a reserve for specific used vehicles where cost basis exceeds market value. Our new vehicle sales histories have indicated that the vast majority of the new vehicles we sell are sold for, or in excess of, our cost to purchase those vehicles. Therefore, we generally do not maintain a reserve for specific new vehicle inventory. In assessing lower of cost or market for used vehicles, we consider (i) the aging of our used vehicles, (ii) historical sales experience of used vehicles and (iii) current market conditions and trends for used vehicles. We also review and consider the following metrics related to used vehicle sales (both on a recent and longer-term historical basis): (a) days of supply in our used vehicle inventory, (b) used vehicle units sold at less than original cost as a percentage of total used vehicles sold and (c) average vehicle selling price of used vehicle units sold at less than original cost. We then determine the appropriate level of reserve required to reduce our used vehicle inventory to the lower of cost or market, and record the resulting adjustment in the period in which we determine a loss has occurred. The level of reserve determined to be appropriate for each reporting period is considered to be a permanent inventory write-down and therefore is only released upon the sale of the related inventory. | ||
We receive assistance from certain automobile manufacturers in the form of advertising and interest credits. Manufacturer advertising credits that are reimbursements of costs associated with specific advertising programs are recognized as a reduction of advertising expense in the period they are earned. All other manufacturer advertising and interest credits are accounted for as purchase discounts and are recorded as a reduction of inventory and recognized as a reduction to New Vehicle Cost of Sales in the accompanying Consolidated Statements of Income in the period the related vehicle is sold. | ||
Property, Plant and Equipment, Policy [Policy Text Block] | ' | |
Property and Equipment | ||
Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Depreciation is included in Depreciation and Amortization and Discontinued Operations, net of tax, on the accompanying Consolidated Statements of Income. Leasehold improvements are capitalized and amortized over the lesser of the life of the lease or the useful life of the related asset. The ranges of estimated useful lives are as follows (in years): | ||
Buildings and improvements | Oct-40 | |
Machinery and equipment | 10-May | |
Furniture and fixtures | 10-Mar | |
Company vehicles | 5-Mar | |
Expenditures for major additions or improvements, which extend the useful lives of assets, are capitalized. Minor replacements, maintenance and repairs, which do not improve or extend the lives of such assets, are expensed as incurred. | ||
We review property and equipment for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. When we test our long-lived assets for impairment, we first compare the carrying amount of the underlying assets to their net recoverable value by reviewing the undiscounted cash flows expected to result from the use and eventual disposition of the underlying assets. If the carrying amount of the underlying assets is less than their net recoverable value, then we calculate an impairment equal to the excess of the carrying amount over the fair market value, and the impairment loss would be charged to operations in the period identified. As a result of impairment tests conducted in 2013, 2012 and 2011, we recorded only immaterial impairments of certain of our property and equipment in those periods. | ||
We capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and is depreciated over the estimated useful lives of the assets. | ||
Goodwill and Intangible Assets, Policy [Policy Text Block] | ' | |
Goodwill and Other Intangible Assets | ||
Goodwill represents the excess cost of the businesses acquired over the fair market value of the identifiable net assets. We have determined that, based on how we integrate acquisitions into our business, how the components of our business share resources and interact with one another, and the fact that all components are economically similar, we qualify as a single reporting unit for purposes of testing goodwill for impairment. | ||
Our only significant identifiable intangible assets, other than goodwill, are rights under franchise agreements with manufacturers, which are recorded at an individual dealership level. The fair market value of our manufacturer franchise rights, which are included in Other Long Term Assets on the accompanying Consolidated Balance Sheets, is determined at the acquisition date through discounting the projected cash flows specific to each franchise. We have determined that manufacturer franchise rights have an indefinite life as there are no economic, contractual or other factors that limit their useful lives and they are expected to generate cash flows indefinitely due to the historically long lives of the manufacturers’ brand names. Furthermore, to the extent that any agreements evidencing our manufacturer franchise rights would expire, we expect that we would be able to renew those agreements in the ordinary course of business. | ||
We do not amortize goodwill and other intangible assets that are deemed to have indefinite lives. We review goodwill and manufacturer franchise rights for impairment annually as of October 1st of each year, or more often if events or circumstances indicate that impairment may have occurred. We are subject to financial statement risk to the extent that manufacturer franchise rights become impaired due to decreases in fair market value of our individual franchises or to the extent that goodwill becomes impaired due to decreases in the fair market value of our automotive retail business. | ||
We completed our annual intangible impairment tests as of October 1, 2013, and no impairment of goodwill or other intangible assets was recognized as a result of such tests. | ||
Deferred Charges, Policy [Policy Text Block] | ' | |
Debt Issuance Costs | ||
Debt issuance costs are capitalized and included in Other Current Assets and Other Long-Term Assets in the accompanying Consolidated Balance Sheets. Debt issuance costs are amortized to Other Interest Expense, net and Floor Plan Interest Expense in the accompanying Consolidated Statements of Income through maturity using either the effective interest method or straight line method. | ||
Derivatives, Policy [Policy Text Block] | ' | |
Derivative Instruments and Hedging Activities | ||
From time to time, we utilize derivative financial instruments to manage our capital structure and interest rate risk. The types of risks hedged are those relating to the variability of cash flows and changes in the fair value of our financial instruments caused by movements in interest rates. We document our risk management strategy and assess hedge effectiveness at the inception and during the term of each hedge. Derivatives are reported at fair value on the accompanying Consolidated Balance Sheets. | ||
The effective portion of the gain or loss on our cash flow hedges is reported as a component of Accumulated Other Comprehensive Loss on the accompanying Consolidated Balance Sheets and reclassified to Swap Interest Expense in the accompanying Consolidated Statements of Income in the same period during which the hedged transaction affects earnings. | ||
Measurements of hedge effectiveness are based on comparisons between the gains or losses of the actual interest rate swaps and the gains or losses of hypothetical interest rate swaps, which have the same critical terms of the defined hedged items. Ineffective portions of these interest rate swaps are reported as a component of interest expense in the accompanying Consolidated Statements of Income. | ||
Self Insurance, Policy [Policy Text Block] | ' | |
Insurance | ||
We are self insured for employee medical claims and maintain stop loss insurance for large-dollar individual claims. We have large deductible insurance programs for workers compensation, property and general liability claims. We maintain and review our claim and loss history to assist in assessing our expected future liability for these claims. We also use professional service providers, such as account administrators and actuaries, to help us accumulate and assess this information. | ||
Consolidation, Policy [Policy Text Block] | ' | |
Internal Profit | ||
Revenues and expenses associated with the internal work performed by our parts and service departments on new and used vehicle inventory are eliminated in consolidation. The gross profit earned by our parts and service departments for internal work performed is included as a reduction of Parts and Service Cost of Sales on the accompanying Consolidated Statements of Income. The costs incurred by our new and used vehicle departments for work performed by our parts and service departments is included in either New Vehicle Cost of Sales or Used Vehicle Cost of Sales on the accompanying Consolidated Statements of Income, depending on the classification of the vehicle serviced. We maintain a reserve to eliminate the internal profit on vehicles that have not been sold. | ||
Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block] | ' | |
Share-Based Compensation | ||
We record share-based compensation expense under the fair value method on a straight-line basis over the vesting period, unless the awards are subject to performance conditions, in which case we recognize the expense over the requisite service period of each separate vesting tranche. | ||
Advertising Costs, Policy [Policy Text Block] | ' | |
Advertising | ||
We expense costs of advertising as incurred and production costs when the advertising initially takes place, net of certain advertising credits and other discounts. Advertising expense from continuing operations totaled $32.8 million, $27.8 million and $25.3 million for the years ended December 31, 2013, 2012 and 2011, net of earned advertising credits and volume discounts of $13.5 million, $11.8 million and $9.5 million, respectively, and is included in Selling, General and Administrative expense in the accompanying Consolidated Statements of Income. |
Summary_of_Significant_Account2
Summary of Significant Accounting Policies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounting Policies [Abstract] | ' | |||||||
Schedule of Estimated Useful Lives | ' | |||||||
The ranges of estimated useful lives are as follows (in years): | ||||||||
Buildings and improvements | Oct-40 | |||||||
Machinery and equipment | 10-May | |||||||
Furniture and fixtures | 10-Mar | |||||||
Company vehicles | 5-Mar | |||||||
Property and equipment, net consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Land | $ | 263.8 | $ | 227.7 | ||||
Buildings and leasehold improvements | 439.7 | 386.6 | ||||||
Machinery and equipment | 74.6 | 71.6 | ||||||
Furniture and fixtures | 44.4 | 35.3 | ||||||
Company vehicles | 9.1 | 8.6 | ||||||
Total | 831.6 | 729.8 | ||||||
Less—Accumulated depreciation | (180.1 | ) | (164.0 | ) | ||||
Property and equipment, net | $ | 651.5 | $ | 565.8 | ||||
Schedule of Revenue by Major Brand | ' | |||||||
For the year ended December 31, 2013, brands representing 5% or more of our revenues from new vehicle sales were as follows: | ||||||||
Brand | % of Total | |||||||
New | ||||||||
Vehicle Revenues | ||||||||
Honda | 20 | % | ||||||
Nissan | 13 | % | ||||||
Toyota | 11 | % | ||||||
BMW | 9 | % | ||||||
Ford | 7 | % | ||||||
Mercedes-Benz | 7 | % | ||||||
Lexus | 7 | % | ||||||
Acura | 5 | % |
Acquisitions_Tables
Acquisitions (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Business Combinations [Abstract] | ' | |||||||
Schedule of Business Acquisitions | ' | |||||||
Below is the allocation of purchase price for acquisitions completed during 2013 and 2012. The $29.6 million and $11.6 million of goodwill and manufacturer franchise rights associated with our 2013 and 2012 acquisitions will be deductible for federal and state income taxes ratably over a 15 year period. | ||||||||
For the Year Ended December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Inventory | $ | 11.9 | $ | 9.8 | ||||
Loaners | — | 0.4 | ||||||
Real estate | 18.7 | 12.7 | ||||||
Property and equipment | 1.6 | 0.2 | ||||||
Goodwill | 26 | 10 | ||||||
Manufacturer franchise rights | 3.6 | 1.6 | ||||||
Total purchase price | $ | 61.8 | $ | 34.7 | ||||
Inventories_Tables
Inventories (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory | ' | |||||||
Inventories consisted of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
New vehicles | $ | 605.2 | $ | 517.4 | ||||
Used vehicles | 121.8 | 94.6 | ||||||
Parts and accessories | 40.7 | 36.5 | ||||||
Total inventories | $ | 767.7 | $ | 648.5 | ||||
Assets_and_Liabilities_Held_fo1
Assets and Liabilities Held for Sale (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Disclosure of Long Lived Assets and Liabilities Held-for-sale | ' | |||||||
A summary of assets held for sale and liabilities associated with assets held for sale is as follows: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Assets: | ||||||||
Inventories | $ | — | $ | 6.6 | ||||
Property and equipment, net | 9.1 | 20.7 | ||||||
Goodwill | — | 0.3 | ||||||
Total assets | 9.1 | 27.6 | ||||||
Liabilities: | ||||||||
Floor plan notes payable—non-trade | — | 5.4 | ||||||
Accrued liabilities | — | 4 | ||||||
Total liabilities | — | 9.4 | ||||||
Net assets held for sale | $ | 9.1 | $ | 18.2 | ||||
Other_Current_Assets_Tables
Other Current Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets [Abstract] | ' | |||||||
Schedule of Other Current Assets | ' | |||||||
Other current assets consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Service loaner vehicles | $ | 59.9 | $ | 51 | ||||
Prepaid taxes | 9.9 | 3 | ||||||
Deposits and escrow | 4.4 | 0.1 | ||||||
Cash surrender value of corporate-owned life insurance policies | — | 7.7 | ||||||
Other | 6.2 | 7.7 | ||||||
Other current assets | $ | 80.4 | $ | 69.5 | ||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property, Plant and Equipment | ' | |||||||
The ranges of estimated useful lives are as follows (in years): | ||||||||
Buildings and improvements | Oct-40 | |||||||
Machinery and equipment | 10-May | |||||||
Furniture and fixtures | 10-Mar | |||||||
Company vehicles | 5-Mar | |||||||
Property and equipment, net consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Land | $ | 263.8 | $ | 227.7 | ||||
Buildings and leasehold improvements | 439.7 | 386.6 | ||||||
Machinery and equipment | 74.6 | 71.6 | ||||||
Furniture and fixtures | 44.4 | 35.3 | ||||||
Company vehicles | 9.1 | 8.6 | ||||||
Total | 831.6 | 729.8 | ||||||
Less—Accumulated depreciation | (180.1 | ) | (164.0 | ) | ||||
Property and equipment, net | $ | 651.5 | $ | 565.8 | ||||
Goodwill_Tables
Goodwill (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||
Schedule of Goodwill | ' | |||||||||||
The changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 are as follows: | ||||||||||||
Gross | Less: | Net | ||||||||||
Carrying | Accumulated | |||||||||||
Amount | Impairment | |||||||||||
(In millions) | ||||||||||||
Balance as of December 31, 2011 | $ | 556.4 | (537.7 | ) | $ | 18.7 | ||||||
Acquisitions | 10 | — | 10 | |||||||||
Divestitures | (0.3 | ) | — | (0.3 | ) | |||||||
Balance as of December 31, 2012 | 566.1 | (537.7 | ) | 28.4 | ||||||||
Acquisitions | 26.1 | — | 26.1 | |||||||||
Divestitures | — | — | — | |||||||||
Balance as of December 31, 2013 | $ | 592.2 | $ | (537.7 | ) | $ | 54.5 | |||||
Other_Longterm_Assets_Tables
Other Long-term Assets (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Assets, Noncurrent [Abstract] | ' | |||||||
Schedule of Other Long-Term Assets | ' | |||||||
Other Long-Term Assets consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Manufacturer franchise rights | $ | 38.6 | $ | 35 | ||||
Deferred financing costs | 12.6 | 10.9 | ||||||
Cash surrender value of corporate-owned life insurance policies | 2.5 | 2.4 | ||||||
Construction period rent | 1.5 | 2.2 | ||||||
Interest rate swap asset | 2.3 | — | ||||||
Other | 3.4 | 2.8 | ||||||
Total other long-term assets | $ | 60.9 | $ | 53.3 | ||||
Accounts_Payable_and_Accrued_L1
Accounts Payable and Accrued Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Payables and Accruals [Abstract] | ' | |||||||
Schedule of Accounts Payable and Accrued Liabilities | ' | |||||||
Accounts payable and accrued liabilities consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accounts payable | $ | 62.4 | $ | 64.8 | ||||
Loaner vehicle notes payable | 52.6 | 46.7 | ||||||
Accrued compensation | 23.4 | 20.2 | ||||||
Taxes payable (non-income tax) | 15.8 | 15.9 | ||||||
Accrued insurance | 15.8 | 14.6 | ||||||
Accrued finance and insurance chargebacks | 14.2 | 11 | ||||||
Accrued interest | 5.5 | 7 | ||||||
Deferred compensation liability | — | 7.8 | ||||||
Other | 23.9 | 21.1 | ||||||
Accounts payable and accrued liabilities | $ | 213.6 | $ | 209.1 | ||||
Longterm_Debt_Tables
Long-term Debt (Tables) | 12 Months Ended | ||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||
Debt Disclosure [Abstract] | ' | ||||||||||||||||||||
Schedule of Mortgage Notes Payable [Table Text Block] | ' | ||||||||||||||||||||
Below is a summary of our outstanding mortgage notes payable, the carrying values of the related collateralized real estate, and years of maturity as of December 31, 2013 and 2012: | |||||||||||||||||||||
As of December 31, 2013 | As of December 31, 2012 | ||||||||||||||||||||
Mortgage Agreement | Aggregate Principal Outstanding | Carrying Value of Collateralized Related Real Estate | Maturity Dates | Aggregate Principal Outstanding | Carrying Value of Collateralized Related Real Estate | Maturity Dates | |||||||||||||||
Real Estate Credit Agreement | $ | 75 | $ | 131 | 2023 | $ | — | $ | — | ||||||||||||
Master Loan Agreement | 18.4 | 34.3 | 2015 | 19.7 | 35.5 | 2015 | |||||||||||||||
Captive Mortgages | 122.7 | 157.5 | 2018-2023 | 73.2 | 81.4 | 2018-2023 | |||||||||||||||
Other mortgage debt | 25.4 | 38.6 | 2018-2022 | 26 | 35.5 | 2018-2022 | |||||||||||||||
Total | $ | 241.5 | $ | 361.4 | $ | 118.9 | $ | 152.4 | |||||||||||||
Schedule of Long-term Debt | ' | ||||||||||||||||||||
Long-term debt consists of the following: | |||||||||||||||||||||
As of December 31, | |||||||||||||||||||||
2013 | 2012 | ||||||||||||||||||||
(In millions) | |||||||||||||||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 300 | $ | 200 | |||||||||||||||||
7.625% Senior Subordinated Notes due 2017 | — | 143.2 | |||||||||||||||||||
Mortgage notes payable bearing interest at fixed and variable rates | 166.5 | 118.9 | |||||||||||||||||||
Real estate credit agreement | 75 | — | |||||||||||||||||||
Capital lease obligations | 3.7 | 3.9 | |||||||||||||||||||
545.2 | 466 | ||||||||||||||||||||
Add: unamortized premium on 8.375% Senior Subordinated Notes due 2020 | 9.2 | — | |||||||||||||||||||
Long-term debt, including current portion | 554.4 | 466 | |||||||||||||||||||
Less: current portion | (11.1 | ) | (4.6 | ) | |||||||||||||||||
Long-term debt | $ | 543.3 | $ | 461.4 | |||||||||||||||||
Schedule of Maturities of Long-term Debt [Table Text Block] | ' | ||||||||||||||||||||
The aggregate maturities of long-term debt as of December 31, 2013, are as follows (in millions) (a): | |||||||||||||||||||||
2014 | $ | 10 | |||||||||||||||||||
2015 | 26.4 | ||||||||||||||||||||
2016 | 9.5 | ||||||||||||||||||||
2017 | 9.8 | ||||||||||||||||||||
2018 | 10.1 | ||||||||||||||||||||
Thereafter | 479.4 | ||||||||||||||||||||
$ | 545.2 | ||||||||||||||||||||
______________________________ | |||||||||||||||||||||
(a) | Does not include $9.2 million of unamortized premium that increases the book value of our 8.375% Notes ($1.1 million of which was classified within Current Portion of Long Term Debt as of December 31, 2013). |
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value (Tables) | 12 Months Ended | ||||||||||||||
Dec. 31, 2013 | |||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||
Schedule of Carrying Values and Fair Values of Liabilities | ' | ||||||||||||||
A summary of the carrying values and fair values of our 8.375% Notes and our 7.625% Notes is as follows: | |||||||||||||||
As of December 31, | |||||||||||||||
2013 | 2012 | ||||||||||||||
(In millions) | |||||||||||||||
Carrying Value: | |||||||||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 309.2 | $ | 200 | |||||||||||
7.625% Senior Subordinated Notes due 2017 | — | 143.2 | |||||||||||||
Total carrying value | $ | 309.2 | $ | 343.2 | |||||||||||
Fair Value: | |||||||||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 336.8 | $ | 221.5 | |||||||||||
7.625% Senior Subordinated Notes due 2017 | — | 147.5 | |||||||||||||
Total fair value | $ | 336.8 | $ | 369 | |||||||||||
Schedule of Derivative Instruments Effect on Accumulated Other Comprehensive Income | ' | ||||||||||||||
Information about the effect of derivative instruments on the accompanying Consolidated Statements of Income, including the impact on Accumulated Other Comprehensive Income ("AOCI") (in millions): | |||||||||||||||
For the Year Ended December 31, | Derivative in Cash Flow Hedging Relationships | Results | Location of Results | Amount Reclassified from AOCI to Earnings–Active Swaps | Amount Reclassified from AOCI to Earnings–Terminated Swaps | Ineffective Results Recognized in Earnings | Location of | ||||||||
Recognized | Reclassified from | Ineffective Results | |||||||||||||
in AOCI | AOCI to Earnings | ||||||||||||||
(Effective | |||||||||||||||
Portion) | |||||||||||||||
2013 | Interest rate swaps | $0.40 | Swap interest expense | ($0.50) | ($2.00) | $— | N/A | ||||||||
2012 | Interest rate swaps | ($0.30) | Swap interest expense | ($0.20) | ($4.80) | $— | N/A | ||||||||
2011 | Interest rate swaps | ($3.10) | Swap interest expense | ($4.10) | ($0.30) | $— | N/A | ||||||||
Schedule of Amounts Reclassified out of AOCI | ' | ||||||||||||||
Information about amounts reclassified out of AOCI | (In millions) | ||||||||||||||
Accumulated other comprehensive loss—December 31, 2012 | $ | (1.6 | ) | ||||||||||||
Change in fair value of cash flow swaps | 0.9 | ||||||||||||||
Amortization of terminated cash flow swaps | 2 | ||||||||||||||
Total amount reclassified to swap interest expense | 2.9 | ||||||||||||||
Income tax impact associated with cash flow swaps | (1.1 | ) | |||||||||||||
Accumulated other comprehensive income—December 31, 2013 | $ | 0.2 | |||||||||||||
Schedule of Instruments Entered Into For Hedging Purposes | ' | ||||||||||||||
Market Risk Disclosures as of December 31, 2013: | |||||||||||||||
Instruments entered into for trading purposes—None | |||||||||||||||
Instruments entered into for hedging purposes (in millions)— | |||||||||||||||
Type of Derivative | Notional Size | Underlying Rate | Expiration | Fair Value | |||||||||||
Interest Rate Swap* | $ | 75 | 1 month LIBOR | Sep-23 | $ | 0.7 | |||||||||
Interest Rate Swap* | $ | 18.4 | 1 month LIBOR | Oct-15 | $ | (0.4 | ) | ||||||||
____________________________ | |||||||||||||||
* The total fair value of our swaps is a $0.3 million net asset, of which $1.9 million is included in Accounts Payable and Accrued Liabilities, $0.1 million is included in Other Long-Term Liabilities and $2.3 million is included in Other Long-Term Assets on the accompanying Consolidated Balance Sheet. | |||||||||||||||
Market Risk Disclosures as of December 31, 2012: | |||||||||||||||
Instruments entered into for trading purposes—None | |||||||||||||||
Instruments entered into for hedging purposes (in millions)— | |||||||||||||||
Type of Derivative | Notional Size | Underlying Rate | Expiration | Fair Value | |||||||||||
Interest Rate Swap* | $ | 19.7 | 1 month LIBOR | Oct-15 | $ | (0.6 | ) | ||||||||
____________________________ | |||||||||||||||
* The total fair value of our swap is a $0.6 million net liability, of which $0.3 million is included in Accounts Payable and Accrued Liabilities and $0.3 million is included in Other Long-Term Liabilities, respectively, on the accompanying Consolidated Balance Sheet. |
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||
Schedule of Components of Income Tax Expense | ' | |||||||||||
The components of income tax expense from continuing operations are as follows: | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Current: | ||||||||||||
Federal | $ | 43.2 | $ | 33 | $ | 15.5 | ||||||
State | 4.1 | 1.9 | (0.1 | ) | ||||||||
Subtotal | 47.3 | 34.9 | 15.4 | |||||||||
Deferred: | ||||||||||||
Federal | 12 | 11.2 | 9.6 | |||||||||
State | 4.9 | 3.9 | 3.7 | |||||||||
Subtotal | 16.9 | 15.1 | 13.3 | |||||||||
Total | $ | 64.2 | $ | 50 | $ | 28.7 | ||||||
Reconciliation of the Statutory Federal Rate to the Effective Rate | ' | |||||||||||
A reconciliation of the statutory federal rate to the effective tax rate from continuing operations is as follows: | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions) | ||||||||||||
Provision at the statutory rate | $ | 57.9 | $ | 46.7 | $ | 26.3 | ||||||
Increase (decrease) resulting from: | ||||||||||||
State income tax expense, net | 5.8 | 3.5 | 2.4 | |||||||||
(Gain) loss on corporate owned life insurance policies | — | (0.5 | ) | 0.1 | ||||||||
Tax credits received | — | — | (0.5 | ) | ||||||||
Other | 0.5 | 0.3 | 0.4 | |||||||||
Provision for income taxes | $ | 64.2 | $ | 50 | $ | 28.7 | ||||||
Schedule of Deferred Tax Assets and Liabilities | ' | |||||||||||
The tax effects of temporary differences representing deferred tax assets (liabilities) result principally from the following: | ||||||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Reserves and accruals | $ | 23.8 | $ | 26.2 | ||||||||
Net operating loss (“NOL”) carryforwards | 0.3 | 1.8 | ||||||||||
Goodwill amortization | 18.5 | 27.2 | ||||||||||
Depreciation | (20.8 | ) | (18.4 | ) | ||||||||
Interest rate swaps | (0.1 | ) | 1 | |||||||||
Other | 0.8 | 0.6 | ||||||||||
Net deferred tax asset | $ | 22.5 | $ | 38.4 | ||||||||
December 31, | ||||||||||||
2013 | 2012 | |||||||||||
(In millions) | ||||||||||||
Balance sheet classification: | ||||||||||||
Deferred tax assets: | ||||||||||||
Current | $ | 11 | $ | 11.9 | ||||||||
Long-term | 50.3 | 66.5 | ||||||||||
Deferred tax liabilities: | ||||||||||||
Current | (1.6 | ) | (1.0 | ) | ||||||||
Long-term | (37.2 | ) | (39.0 | ) | ||||||||
Net deferred tax asset | $ | 22.5 | $ | 38.4 | ||||||||
Schedule of Gross Unrecognized Tax Benefits | ' | |||||||||||
A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows: | ||||||||||||
Gross Liability for | ||||||||||||
Unrecognized Tax | ||||||||||||
Benefits | ||||||||||||
In Millions | ||||||||||||
Balance at January 1, 2011 | $ | 1.2 | ||||||||||
Additions for Tax Positions of Prior Year | 0.3 | |||||||||||
Reduction for Lapse of Statute of Limitations | (0.5 | ) | ||||||||||
Balance at December 31, 2011 | 1 | |||||||||||
Reduction for Lapse of Statute of Limitations | (0.7 | ) | ||||||||||
Balance at December 31, 2012 | 0.3 | |||||||||||
Reduction for Lapse of Statute of Limitations | — | |||||||||||
Balance at December 31, 2013 | $ | 0.3 | ||||||||||
Other_LongTerm_Liabilities_Tab
Other Long-Term Liabilities (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Other Liabilities Disclosure [Abstract] | ' | |||||||
Schedule of Other Long-Term Liabilities | ' | |||||||
OTHER LONG-TERM LIABILITIES | ||||||||
Other long-term liabilities consist of the following: | ||||||||
As of December 31, | ||||||||
2013 | 2012 | |||||||
(In millions) | ||||||||
Accrued finance and insurance chargebacks | $ | 12.2 | $ | 8.1 | ||||
Deferred rent | 6.2 | 6.6 | ||||||
Unclaimed property | 1.1 | 1 | ||||||
Other | 1 | 1.7 | ||||||
Other long-term liabilities | $ | 20.5 | $ | 17.4 | ||||
Discontinued_Operations_and_Di1
Discontinued Operations and Divestitures (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||||||
Schedule of Discontinued Operations and Related Results of Business | ' | |||||||||||
The following tables provide further information regarding our discontinued operations as of December 31, 2013, and includes the results of businesses sold prior to December 31, 2013: | ||||||||||||
For the Year Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
(In millions, except franchise data) | ||||||||||||
Franchises: | ||||||||||||
Mid-line import | 1 | 1 | 2 | |||||||||
Heavy trucks | — | — | 10 | |||||||||
Luxury | — | 3 | 4 | |||||||||
Total | 1 | 4 | 16 | |||||||||
Revenues | $ | 3.8 | $ | 113.1 | $ | 231.9 | ||||||
Cost of sales | 3.4 | 94.4 | 196.9 | |||||||||
Gross profit | 0.4 | 18.7 | 35 | |||||||||
Operating expenses | 2.1 | 20.4 | 34.9 | |||||||||
Impairment expenses | — | 2 | — | |||||||||
(Loss) income from operations | (1.7 | ) | (3.7 | ) | 0.1 | |||||||
Other expense, net | — | (0.2 | ) | (1.1 | ) | |||||||
Gain on disposition | 14.6 | 2.1 | 35.9 | |||||||||
Income (loss) before income taxes | 12.9 | (1.8 | ) | 34.9 | ||||||||
Income tax (expense) benefit | (4.9 | ) | 0.7 | (13.5 | ) | |||||||
Discontinued operations, net of tax | $ | 8 | $ | (1.1 | ) | $ | 21.4 | |||||
Supplemental_Cash_Flow_Informa1
Supplemental Cash Flow Information Supplemental Cash Flow Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Supplemental Cash Flow Elements [Abstract] | ' | |||||||||||
Schedule of Cash Flow, Supplemental Disclosures [Table Text Block] | ' | |||||||||||
The following items are included in Other Adjustments, net to reconcile net income to cash flow from operating activities: | ||||||||||||
For the Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Accelerated rent expense associated with abandoned rental properties | $ | — | $ | 0.7 | $ | 0.2 | ||||||
Amortization of deferred financing fees | 2.4 | 2.5 | 2.7 | |||||||||
Convertible debt discount amortization | — | 0.4 | 0.8 | |||||||||
Other individually immaterial items | 0.6 | 2.4 | 0.2 | |||||||||
Other adjustments, net | $ | 3 | $ | 6 | $ | 3.9 | ||||||
Lease_Obligations_Tables
Lease Obligations (Tables) | 12 Months Ended | |||
Dec. 31, 2013 | ||||
Leases [Abstract] | ' | |||
Schedule of Future Minimum Payments for Operating Leases | ' | |||
Future minimum payments under long-term, non-cancellable operating leases as of December 31, 2013, are as follows: | ||||
Total | ||||
(In millions) | ||||
2014 | $ | 31.3 | ||
2015 | 29.3 | |||
2016 | 28.3 | |||
2017 | 26.1 | |||
2018 | 23.1 | |||
Thereafter | 92.7 | |||
Total minimum lease payments | $ | 230.8 | ||
Sharebased_Compensation_and_Em1
Share-based Compensation and Employee Benefit Plans (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Compensation Related Costs [Abstract] | ' | ||||||||||||
Schedule of Options Oustanding and Exercisable | ' | ||||||||||||
A summary of options outstanding and exercisable under the Plans as of December 31, 2013, changes during the year then ended and changes during the years ended December 31, 2012 and 2011 is presented below: | |||||||||||||
Stock | Weighted Average | Weighted | Aggregate Intrinsic | ||||||||||
Options | Exercise Price | Average | Value* (in millions) | ||||||||||
Remaining | |||||||||||||
Contractual | |||||||||||||
Term | |||||||||||||
Options outstanding—December 31, 2010 | 1,538,978 | $ | 7.37 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (777,982 | ) | 8.48 | ||||||||||
Expired / Forfeited | (68,001 | ) | 4.82 | ||||||||||
Options outstanding—December 31, 2011 | 692,995 | $ | 6.38 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (644,241 | ) | 6.01 | ||||||||||
Expired / Forfeited | (28,501 | ) | 9.19 | ||||||||||
Options outstanding—December 31, 2012 | 20,253 | $ | 14.1 | ||||||||||
Granted | — | — | |||||||||||
Exercised | (12,086 | ) | 14.13 | ||||||||||
Expired / Forfeited | — | — | |||||||||||
Options outstanding—December 31, 2013 | 8,167 | $ | 14.05 | 1 | $ | 0.3 | |||||||
Options exercisable—December 31, 2013 | 8,167 | $ | 14.05 | 1 | $ | 0.3 | |||||||
____________________________ | |||||||||||||
* Based on the closing price of our common stock on December 31, 2013, which was $53.74 per share. | |||||||||||||
Schedule of Performance Share Units | ' | ||||||||||||
A summary of performance share units and restricted stock as of December 31, 2013, changes during the year then ended and changes during the years ended December 31, 2012 and 2011 is presented below: | |||||||||||||
Shares | Weighted Average Grant Date | ||||||||||||
Fair Value | |||||||||||||
Performance Share Units—December 31, 2010 | 378,126 | $ | 12.48 | ||||||||||
Granted | 146,480 | 18.92 | |||||||||||
Performance estimate | (42,242 | ) | 17.81 | ||||||||||
Vested | (218,430 | ) | 14.4 | ||||||||||
Forfeited | (20,784 | ) | 12.31 | ||||||||||
Performance Share Units—December 31, 2011 | 243,150 | $ | 14.91 | ||||||||||
Granted | 109,400 | 25.42 | |||||||||||
Performance estimate | 65,247 | 22.05 | |||||||||||
Vested | (115,483 | ) | 14.7 | ||||||||||
Forfeited | (19,550 | ) | 14.76 | ||||||||||
Performance Share Units—December 31, 2012 | 282,764 | $ | 20.82 | ||||||||||
Granted | 143,710 | 34.98 | |||||||||||
Performance estimate | 48,350 | 34.98 | |||||||||||
Vested | (144,711 | ) | 18.35 | ||||||||||
Forfeited | (400 | ) | 25.42 | ||||||||||
Performance Share Units—December 31, 2013* | 329,713 | $ | 30.12 | ||||||||||
___________________________ | |||||||||||||
* Maximum of 335,098 issuable upon attaining certain performance metrics. | |||||||||||||
Schedule of Restricted Stock | ' | ||||||||||||
Shares | Weighted Average Grant | ||||||||||||
Date Fair Value | |||||||||||||
Restricted Stock—December 31, 2010 | 531,446 | $ | 12.19 | ||||||||||
Granted | 228,840 | 19.15 | |||||||||||
Vested | (270,742 | ) | 12.64 | ||||||||||
Forfeited | (45,276 | ) | 12.37 | ||||||||||
Restricted Stock—December 31, 2011 | 444,268 | $ | 16.08 | ||||||||||
Granted | 216,676 | 23.84 | |||||||||||
Vested | (179,675 | ) | 14.6 | ||||||||||
Forfeited | (44,428 | ) | 13.29 | ||||||||||
Restricted Stock—December 31, 2012 | 436,841 | $ | 19.55 | ||||||||||
Granted | 98,251 | 35.03 | |||||||||||
Vested | (157,220 | ) | 17.71 | ||||||||||
Forfeited | (11,748 | ) | 20.72 | ||||||||||
Restricted Stock—December 31, 2013 | 366,124 | $ | 25.79 | ||||||||||
Condensed_Quarterly_Revenues_a1
Condensed Quarterly Revenues and Earnings (Unaudited) (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2013 | ||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | ' | |||||||||||||||
Schedule of Quarterly Financial Information | ' | |||||||||||||||
For the Three Months Ended | ||||||||||||||||
March 31, | June 30, | September 30, | December 31, | |||||||||||||
(In millions, except per share data) | ||||||||||||||||
2012 | ||||||||||||||||
Revenues (1) | $ | 1,070.00 | $ | 1,161.50 | $ | 1,191.10 | $ | 1,219.20 | ||||||||
Gross profit (1) | $ | 184.5 | $ | 191.8 | $ | 194.2 | $ | 194.5 | ||||||||
Net income (1) | $ | 17.6 | $ | 21.1 | $ | 20.7 | $ | 22.8 | ||||||||
Net income per common share: | ||||||||||||||||
Basic (2) | $ | 0.57 | $ | 0.68 | $ | 0.67 | $ | 0.74 | ||||||||
Diluted (2) | $ | 0.56 | $ | 0.67 | $ | 0.66 | $ | 0.73 | ||||||||
2013 | ||||||||||||||||
Revenues (1) | $ | 1,225.40 | $ | 1,345.30 | $ | 1,390.30 | $ | 1,373.90 | ||||||||
Gross profit (1) | $ | 206.7 | $ | 222.6 | $ | 225.7 | $ | 222.5 | ||||||||
Net income | $ | 32.5 | $ | 27 | $ | 22.7 | 26.9 | |||||||||
Net income per common share: | ||||||||||||||||
Basic | $ | 1.05 | $ | 0.88 | $ | 0.74 | $ | 0.88 | ||||||||
Diluted | $ | 1.04 | $ | 0.87 | $ | 0.73 | $ | 0.87 | ||||||||
____________________________ | ||||||||||||||||
-1 | Quarterly revenues, gross profit and net income may not agree to previously reported amounts on Form 10-Q as a result of subsequent discontinued operations or reclassifications of amounts in order to conform to current presentation. | |||||||||||||||
-2 | The sum of income per common share for the four quarters does not equal total income per common share due to changes in the average number of shares outstanding during the respective periods. |
DESCRIPTION_OF_BUSINESS_Detail
DESCRIPTION OF BUSINESS (Details) | Dec. 31, 2013 |
states | |
VehicleBrands | |
CollisionRepairCenters | |
Franchises | |
DealershipLocations | |
MetropolitanMarkets | |
Business Organization [Line Items] | ' |
Number of franchises (in franchises) | 100 |
Number of dealership locations (in dealership locations) | 80 |
Number of metropolitan markets (in metropolitan markets) | 18 |
Number of states (in states) | 10 |
Number of vehicle brands (in vehicle brands) | 29 |
Number of collision repair centers (in collision repair centers) | 24 |
Luxury and Mid-line Import Brands [Member] | ' |
Business Organization [Line Items] | ' |
Weighted brand mix | 86.00% |
Domestic Brands [Member] | ' |
Business Organization [Line Items] | ' |
Weighted brand mix | 14.00% |
Summary_of_Significant_Account3
Summary of Significant Accounting Policies (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Accounting Policies [Line Items] | ' | ' | ' |
Advertising Expense | $32.80 | $27.80 | $25.30 |
General collection period for contracts-in-transit (in days) | '14 days | ' | ' |
Advertising credits and volume discounts | 13.5 | 11.8 | 9.5 |
Long-term debt, excluding floor plan notes | $554.40 | $466 | ' |
Minimum [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Loaner vehicle period of use before sale (in months) | '6 months | ' | ' |
Maximum [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Loaner vehicle period of use before sale (in months) | '12 months | ' | ' |
8.375% Senior Subordinated Notes due 2020 | Senior Subordinated Notes [Member] | ' | ' | ' |
Accounting Policies [Line Items] | ' | ' | ' |
Stated interest rate of debt instrument | 8.38% | 8.38% | ' |
Summary_of_Significant_Account4
Summary of Significant Accounting Policies (Schedule of Property and Equipment Useful Lives) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Buildings and Improvements [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '10 years |
Buildings and Improvements [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '40 years |
Machinery and Equipment [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '5 years |
Machinery and Equipment [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '10 years |
Furniture and Fixtures [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '3 years |
Furniture and Fixtures [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '10 years |
Company Vehicles [Member] | Minimum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '3 years |
Company Vehicles [Member] | Maximum [Member] | ' |
Property, Plant and Equipment [Line Items] | ' |
Estimated useful life (in years) | '5 years |
Summary_of_Significant_Account5
Summary of Significant Accounting Policies (Schedule of Revenues by Major Brand) (Details) | 12 Months Ended |
Dec. 31, 2013 | |
Schedule of Revenues by Major Brand [Line Items] | ' |
Revenues by major brand, disclosure percentage threshold | 5.00% |
New Vehicles [Member] | Honda [Member] | ' |
Schedule of Revenues by Major Brand [Line Items] | ' |
Revenues by major brand, percentage | 20.00% |
New Vehicles [Member] | Nissan [Member] | ' |
Schedule of Revenues by Major Brand [Line Items] | ' |
Revenues by major brand, percentage | 13.00% |
New Vehicles [Member] | Toyota [Member] | ' |
Schedule of Revenues by Major Brand [Line Items] | ' |
Revenues by major brand, percentage | 11.00% |
New Vehicles [Member] | BMW [Member] | ' |
Schedule of Revenues by Major Brand [Line Items] | ' |
Revenues by major brand, percentage | 9.00% |
New Vehicles [Member] | Ford [Member] | ' |
Schedule of Revenues by Major Brand [Line Items] | ' |
Revenues by major brand, percentage | 7.00% |
New Vehicles [Member] | Mercedes-Benz [Member] | ' |
Schedule of Revenues by Major Brand [Line Items] | ' |
Revenues by major brand, percentage | 7.00% |
New Vehicles [Member] | Lexus [Member] | ' |
Schedule of Revenues by Major Brand [Line Items] | ' |
Revenues by major brand, percentage | 7.00% |
New Vehicles [Member] | Acura [Member] | ' |
Schedule of Revenues by Major Brand [Line Items] | ' |
Revenues by major brand, percentage | 5.00% |
Acquisitions_Narrative_Details
Acquisitions (Narrative) (Details) (USD $) | 1 Months Ended | 12 Months Ended | 3 Months Ended | 12 Months Ended | |
In Millions, unless otherwise specified | Jul. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2012 |
Three Franchises (Three Dealership Locations) [Member] | Three Franchises (Three Dealership Locations) [Member] | Three Franchises (Three Dealership Locations) [Member] | 2012 Acquisitions [Member] | Jaguar [Member] | |
Franchises | Franchises | Franchises | |||
DealershipLocations | DealershipLocations | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' | ' |
Number of franchises acquired (in franchises) | 3 | ' | ' | 2 | ' |
Number of dealership locations acquired (in dealership locations) | 3 | ' | ' | 2 | ' |
Aggregate purchase price | $61.80 | ' | ' | $34.70 | ' |
Cash paid for acquisition | 50.5 | ' | ' | 26.9 | ' |
Floor plan borrowings for puchase of related inventory | 11.3 | ' | ' | 7.8 | ' |
Goodwill and manufacturer franchise rights | ' | $29.60 | $11.60 | ' | ' |
Goodwill and manufacturer franchise rights, period for federal and state tax deductions | ' | '15 years | ' | ' | ' |
Number of franchises awarded (in franchises) | ' | ' | ' | ' | 1 |
Acquisitions_Schedule_of_Busin
Acquisitions (Schedule of Business Acquisitions) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
In Millions, unless otherwise specified | ||||
Business Acquisition [Line Items] | ' | ' | ' | ' |
Goodwill | $54.50 | $28.40 | $28.40 | $18.70 |
Three Franchises (Three Dealership Locations) [Member] | ' | ' | ' | ' |
Business Acquisition [Line Items] | ' | ' | ' | ' |
Inventory | 11.9 | 9.8 | ' | ' |
Loaners | 0 | 0.4 | ' | ' |
Real Estate | 18.7 | 12.7 | ' | ' |
Property and equipment | 1.6 | 0.2 | ' | ' |
Goodwill | 26 | 10 | ' | ' |
Manufacturer franchise rights | 3.6 | 1.6 | ' | ' |
Total purchase price | $61.80 | $34.70 | ' | ' |
Accounts_Receivable_Details
Accounts Receivable (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Receivables [Abstract] | ' | ' | ' |
Trade receivables sold, annual contractual amount, maximum | $25 | ' | ' |
Discount on trade receivables sold | 0.3 | 0.4 | 0.6 |
Trade receivables sold | $13.80 | $18.70 | $22.60 |
Inventories_Details
Inventories (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Components of Inventory [Line Items] | ' | ' |
Inventories | $767.70 | $648.50 |
Lower of cost or market inventory reserves | 6 | 4.7 |
Inventories classified as Assets Held for Sale | 0 | 6.6 |
New Vehicles [Member] | ' | ' |
Components of Inventory [Line Items] | ' | ' |
Inventories | 605.2 | 517.4 |
Reduction of new vehicle inventory cost by automobile manufacturer incentives | 7.4 | 6.3 |
Reduction to new vehicle cost of sales by automobile manufacturer incentives | 28 | 23.9 |
Used Vehicles [Member] | ' | ' |
Components of Inventory [Line Items] | ' | ' |
Inventories | 121.8 | 94.6 |
Parts and Accessories [Member] | ' | ' |
Components of Inventory [Line Items] | ' | ' |
Inventories | $40.70 | $36.50 |
Assets_and_Liabilities_Held_fo2
Assets and Liabilities Held for Sale (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
DealershipLocations | ||
Franchises | ||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Number of franchises, sold (in franchises) | 1 | ' |
Number of dealership locations, sold (in dealership locations) | 1 | ' |
Real estate held-for-sale | $9.10 | $9.20 |
Assets: | ' | ' |
Inventories | 0 | 6.6 |
Property and equipment, net | 9.1 | 20.7 |
Goodwill | 0 | 0.3 |
Total assets | 9.1 | 27.6 |
Liabilities: | ' | ' |
Floor plan notes payable—non-trade | 0 | 5.4 |
Accrued liabilities | 0 | 4 |
Total liabilities | 0 | 9.4 |
Net assets held for sale | 9.1 | 18.2 |
Pending Disposition [Member] | ' | ' |
Assets: | ' | ' |
Total assets | ' | 18.4 |
Liabilities: | ' | ' |
Total liabilities | ' | $9.40 |
Other_Current_Assets_Details
Other Current Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Assets [Abstract] | ' | ' |
Service loaner vehicles | $59.90 | $51 |
Prepaid taxes | 9.9 | 3 |
Deposits and escrow | 4.4 | 0.1 |
Cash surrender value of corporate-owned life insurance policies | 0 | 7.7 |
Other | 6.2 | 7.7 |
Other current assets | $80.40 | $69.50 |
Property_and_Equipment_Net_Nar
Property and Equipment, Net (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Interest costs capitalized | $1.30 | $0.90 | $0.40 |
Depreciation and capital lease obligation amortization | 24.3 | 22.6 | 22.5 |
Real estate pledged as collateral | 361.4 | 152.4 | ' |
Impairment expenses | 0 | 2.3 | 1.1 |
Impairment expenses included in Discontinued Operations | ' | 2 | ' |
Mortgages [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Long-term debt | 241.5 | 118.9 | ' |
Real Estate Credit Agreement [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Long-term debt | $75 | ' | ' |
Property_and_Equipment_Net_Sch
Property and Equipment, Net (Schedule of Property and Equipment, Net) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $831.60 | $729.80 |
Less - Accumulated depreciation | -180.1 | -164 |
Property and equipment, net | 651.5 | 565.8 |
Land [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 263.8 | 227.7 |
Building and Leasehold Improvements [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 439.7 | 386.6 |
Machinery and Equipment [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 74.6 | 71.6 |
Furniture and Fixtures [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | 44.4 | 35.3 |
Company Vehicles [Member] | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' |
Property and equipment, gross | $9.10 | $8.60 |
Goodwill_Details
Goodwill (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 |
Goodwill [Roll Forward] | ' | ' | ' |
Gross Carrying Amount, beginning balance | $566.10 | $556.40 | $592.20 |
Less: Accumulated Impairment, beginning balance | -537.7 | -537.7 | -537.7 |
Net, beginning balance | 28.4 | 18.7 | 54.5 |
Acquisitions | 26.1 | 10 | ' |
Divestitures | 0 | -0.3 | ' |
Gross Carrying Amount, ending balance | ' | 566.1 | 592.2 |
Less: Accumulated Impairment, ending balance | ' | -537.7 | -537.7 |
Net, ending balance | $28.40 | $28.40 | $54.50 |
Other_Longterm_Assets_Details
Other Long-term Assets (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Assets, Noncurrent [Abstract] | ' | ' |
Manufacturer franchise rights | $38.60 | $35 |
Deferred financing costs | 12.6 | 10.9 |
Cash surrender value of corporate-owned life insurance policies | 2.5 | 2.4 |
Construction period rent | 1.5 | 2.2 |
Interest rate swap asset | 2.3 | 0 |
Other | 3.4 | 2.8 |
Total other long-term assets | $60.90 | $53.30 |
Floor_Plan_Notes_Payable_Detai
Floor Plan Notes Payable (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 |
Minimum [Member] | Maximum [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | New Vehicles [Member] | New Vehicles [Member] | New Vehicles [Member] | Used Vehicles [Member] | Used Vehicles [Member] | |||
Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Revolving Credit Facility [Member] | Revolving Credit Facility [Member] | Letter of Credit [Member] | New Vehicle Floor Plan [Member] | Used Vehicle Revolving Floor Plan Facility [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | |||||
Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | ||||||||||||
One-Month LIBOR [Member] | One-Month LIBOR [Member] | |||||||||||||||
Line of Credit Facility [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity | ' | ' | ' | ' | ' | $175,000,000 | ' | $175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in interest rate | ' | ' | ' | ' | 0.25% | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | 225,000,000 | ' | ' | 50,000,000 | 625,000,000 | 100,000,000 | 0 | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125.00% | ' | 1.50% |
Increase in line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' |
Additional capacity available upon meeting certain requirements | ' | ' | ' | ' | ' | ' | 250 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Commitment fee percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | ' | 0.25% | ' |
Floor plan notes payable, trade | 74,700,000 | 55,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Floor plan notes payable, non-trade, including amounts classified as Liabilities Associated with Assets Held for Sale | 534,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Floor plan notes payable | 609,500,000 | 562,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Floor plan notes payable- liabilities classified as held for sale | ' | 5,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Days to transfer to off-set account | ' | ' | '1 year | '2 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Off-set account, amount outstanding | $44,300,000 | $12,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Accounts_Payable_and_Accrued_L2
Accounts Payable and Accrued Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Payables and Accruals [Abstract] | ' | ' |
Accounts payable | $62.40 | $64.80 |
Loaner vehicle notes payable | 52.6 | 46.7 |
Accrued compensation | 23.4 | 20.2 |
Taxes payable (non-income tax) | 15.8 | 15.9 |
Accrued insurance | 15.8 | 14.6 |
Accrued finance and insurance chargebacks | 14.2 | 11 |
Deferred compensation liability | 5.5 | 7 |
Accrued interest | 0 | 7.8 |
Other | 23.9 | 21.1 |
Accounts payable and accrued liabilities | $213.60 | $209.10 |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 1 Months Ended | 1 Months Ended | 12 Months Ended | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Oct. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Aug. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | |
Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] | Real Estate Credit Agreement [Member] | Real Estate Credit Agreement [Member] | Real Estate Credit Agreement [Member] | Mortgages [Member] | One-Month LIBOR [Member] | LIBOR [Member] | Base Rate [Member] | Federal Funds [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Revolving Credit Facility [Member] | Standby Letters of Credit [Member] | Minimum [Member] | Minimum [Member] | Maximum [Member] | Maximum [Member] | ||||
8.375% Senior Subordinated Notes due 2020 | 8.375% Senior Subordinated Notes due 2020 | 8.375% Senior Subordinated Notes due 2020 | 7.625% Senior Subordinated Notes due 2017 | 7.625% Senior Subordinated Notes due 2017 | New Mortgage Notes Payable, Fixed Rate [Member] | Real Estate Credit Agreement [Member] | Real Estate Credit Agreement [Member] | Real Estate Credit Agreement [Member] | Real Estate Credit Agreement [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | Reastated Credit Agreement [Member] | |||||||
DealershipLocations | One-Month LIBOR [Member] | Federal Funds [Member] | New Vehicles [Member] | New Vehicles [Member] | New Vehicles [Member] | Used Vehicles [Member] | Used Vehicles [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | Bank of America, N.A. [Member] | |||||||||||||||||||||
debt_instrument | One-Month LIBOR [Member] | One-Month LIBOR [Member] | LIBOR [Member] | Base Rate [Member] | LIBOR [Member] | Base Rate [Member] | ||||||||||||||||||||||||||
Additional Debt Issuance: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of debt instrument | ' | ' | ' | $100,000,000 | ' | ' | ' | ' | ' | ' | ' | $52,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $50,000,000 | ' | ' | ' | ' |
Stated interest rate of debt instrument | ' | ' | ' | ' | 8.38% | 8.38% | 7.63% | 7.63% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 0.50% | ' | ' | ' | ' | ' | ' | ' | 1.75% | 0.75% | 2.75% | 1.75% |
Debt instrument, add-on debt issuance premium | ' | ' | ' | 109.75% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, unamortized discount | ' | ' | ' | 2,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Proceeds from add-on issuance of debt | ' | ' | ' | 108,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, unamortized premium | 9,200,000 | 0 | ' | 9,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, interest rate, effective rate | ' | ' | ' | 6.73% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increase in line of credit facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 175,000,000 | 50,000,000 | ' | ' | ' | ' |
Maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | 75,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | 225,000,000 | ' | ' | ' | 0 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount of letters of credit outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 14,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Remaining Borrowing Capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 160,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Decrease in interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.25% | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 125.00% | ' | 1.50% | ' | ' | ' | ' | ' | ' |
Line of Credit Facility, Commitment Fee Percentage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0.20% | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Redemption: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extinguishment of debt | ' | ' | ' | ' | ' | ' | 143,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on extinguishment of long-term debt | -6,800,000 | 0 | -800,000 | ' | ' | ' | -6,800,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Premiums paid pursuant to the terms of the redemption notice | ' | ' | ' | ' | ' | ' | 3,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Third-party costs associated with the redemption | ' | ' | ' | ' | ' | ' | 100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Write off of deferred debt issuance cost | ' | ' | ' | ' | ' | ' | 3,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Amount outstanding | ' | ' | ' | ' | ' | ' | ' | ' | ' | 17,700,000 | 57,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Periodic payment, principal | ' | ' | ' | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Basis spread on variable rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.00% | 2.50% | 1.50% | 0.50% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Mortgage Notes Payable: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of new debt instruments (in instruments) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of dealership locations used as collateral for new debt (in dealership locations) | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Face value of debt instrument | ' | ' | ' | 100,000,000 | ' | ' | ' | ' | ' | ' | ' | 52,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 50,000,000 | ' | ' | ' | ' |
Debt issuance costs | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes payable, outstanding | ' | ' | ' | ' | 300,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Credit Agreement, Minimum Repurchased Amount Authorized Per Calendar Year | 50,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Covernant Term, Common Stock Repurchase and Cash Dividends, Restricted Amount | 88,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt Instrument, Covernant Term, Additional Funds for Common Stock Repurchase | $10,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Longterm_Debt_Schedule_of_Long
Long-term Debt (Schedule of Long-Term Debt) (Details) (USD $) | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | ||||
Debt Instrument [Line Items] | ' | ' | ' | |
Long-term Debt, Gross | $545.20 | [1] | ' | ' |
Capital lease obligations | 3.7 | ' | 3.9 | |
Long term debt and capital lease obligations, current and noncurrent, before unamortized premium (discount) | 545.2 | ' | 466 | |
Add: unamortized premium on 8.375% Senior Subordinated Notes due 2020 | 9.2 | ' | 0 | |
Long-term debt, including current portion | 554.4 | ' | 466 | |
Less: current portion | -11.1 | ' | -4.6 | |
Long-term debt | 543.3 | ' | 461.4 | |
Mortgages [Member] | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | |
Long-term Debt, Gross | 166.5 | ' | 118.9 | |
Real Estate Credit Agreement [Member] | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | |
Long-term Debt, Gross | 75 | ' | 0 | |
8.375% Senior Subordinated Notes due 2020 | Senior Subordinated Notes [Member] | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | |
Stated interest rate of debt instrument | 8.38% | ' | 8.38% | |
Long-term Debt, Gross | 300 | ' | 200 | |
Add: unamortized premium on 8.375% Senior Subordinated Notes due 2020 | ' | 9.8 | ' | |
7.625% Senior Subordinated Notes due 2017 | Senior Subordinated Notes [Member] | ' | ' | ' | |
Debt Instrument [Line Items] | ' | ' | ' | |
Stated interest rate of debt instrument | 7.63% | ' | 7.63% | |
Long-term Debt, Gross | $0 | ' | $143.20 | |
[1] | Does not include $9.2 million of unamortized premium that increases the book value of our 8.375% Notes ($1.1 million of which was classified within Current Portion of Long Term Debt as of December 31, 2013). |
Longterm_Debt_Schedule_of_Aggr
Long-term Debt (Schedule of Aggregate Maturities of Long-Term Debt) (Details) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | |
In Millions, unless otherwise specified | |||
Debt Disclosure [Abstract] | ' | ' | |
2014 | $10 | [1] | ' |
2015 | 26.4 | [1] | ' |
2016 | 9.5 | [1] | ' |
2017 | 9.8 | [1] | ' |
2018 | 10.1 | [1] | ' |
Thereafter | 479.4 | [1] | ' |
Total long-term debt maturities, gross | 545.2 | [1] | ' |
Debt instrument, unamortized premium | $9.20 | $0 | |
[1] | Does not include $9.2 million of unamortized premium that increases the book value of our 8.375% Notes ($1.1 million of which was classified within Current Portion of Long Term Debt as of December 31, 2013). |
Longterm_Debt_Schedule_of_Mort
Long-term Debt (Schedule of Mortgage Notes Payable) (Details) (Details) (Mortgages [Member], USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Debt Instrument [Line Items] | ' | ' |
Aggregate Principal Outstanding | $241.50 | $118.90 |
Carrying Value of Collateralized Related Real Estate | 361.4 | 152.4 |
Real Estate Credit Agreement [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Aggregate Principal Outstanding | 75 | 0 |
Carrying Value of Collateralized Related Real Estate | 131 | 0 |
Master Loan Agreement [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Aggregate Principal Outstanding | 18.4 | 19.7 |
Carrying Value of Collateralized Related Real Estate | 34.3 | 35.5 |
Captive Mortgage [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Aggregate Principal Outstanding | 122.7 | 73.2 |
Carrying Value of Collateralized Related Real Estate | 157.5 | 81.4 |
Other Mortgage Debt [Member] | ' | ' |
Debt Instrument [Line Items] | ' | ' |
Aggregate Principal Outstanding | 25.4 | 26 |
Carrying Value of Collateralized Related Real Estate | $38.60 | $35.50 |
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value (Details) (USD $) | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2013 | Mar. 12, 2007 | Dec. 31, 2013 | Dec. 31, 2012 | Mar. 31, 2007 |
In Millions, except Per Share data, unless otherwise specified | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Fair Value, Inputs, Level 2 [Member] | Fair Value, Inputs, Level 2 [Member] | Common Stock Warrants [Member] | Common Stock Warrants [Member] | Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] | Convertible Notes [Member] |
Other Long-term Liabilities and Current Liabilities [Member] | Other Long-term Liabilities and Current Liabilities [Member] | 7.625% Senior Subordinated Notes due 2017 | 7.625% Senior Subordinated Notes due 2017 | Three Percent Senior Subordinated Convertible Notes Due 2012 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Interest Rate Cash Flow Hedge Derivative at Fair Value, Net | ' | ' | ($0.30) | $0.60 | ' | ' | ' | ' | ' |
Notional principal amount of derivative liability | 18.4 | 75 | ' | ' | ' | ' | ' | ' | ' |
Notional principal amount of derivative liability, at maturity | 16.1 | 38.7 | ' | ' | ' | ' | ' | ' | ' |
Interest rate swap, net loss amount expected to be reclassified in the next twelve months | ($1.90) | ' | ' | ' | ' | ' | ' | ' | ' |
Stated interest rate of debt instrument | ' | ' | ' | ' | ' | ' | 7.63% | 7.63% | 3.00% |
Investment Warrants, Exercise Price | ' | ' | ' | ' | $44.74 | $45.09 | ' | ' | ' |
Warrants, Exercise Price, Premium over Stock Price at Issuance | ' | ' | ' | ' | ' | 62.50% | ' | ' | ' |
Financial_Instruments_and_Fair3
Financial Instruments and Fair Value (Summary of Carrying Values and Fair Values of Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total carrying value | $309.20 | $343.20 |
Portion at Fair Value, Fair Value Disclosure [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total fair value | 336.8 | 369 |
Senior Subordinated Notes [Member] | 8.375% Senior Subordinated Notes due 2020 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total carrying value | 309.2 | 200 |
Total fair value | 336.8 | 221.5 |
Stated interest rate of debt instrument | 8.38% | 8.38% |
Senior Subordinated Notes [Member] | 7.625% Senior Subordinated Notes due 2017 | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Total carrying value | 0 | 143.2 |
Total fair value | $0 | $147.50 |
Stated interest rate of debt instrument | 7.63% | 7.63% |
Financial_Instruments_and_Fair4
Financial Instruments and Fair Value (Schedule of Derivative Instruments Effect on the Consolidated Income Statement, Including Accumulated Other Comprehensive Income) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Interest Rate Swap [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Results Recognized in AOCI (Effective Portion) | $0.40 | ($0.30) | ($3.10) |
Interest Expense [Member] | Interest Rate Swap [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount Reclassified from AOCI to Earnings | -0.5 | -0.2 | -4.1 |
Ineffective Results Recognized in Earnings | 0 | 0 | 0 |
Interest Expense [Member] | Terminated Interest Rate Swaps [Member] | ' | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' |
Amount Reclassified from AOCI to Earnings | ($2) | ($4.80) | ($0.30) |
Financial_Instruments_and_Fair5
Financial Instruments and Fair Value (Schedule of Amounts Reclassified out of AOCI) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reclassification out of Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Accumulated other comprehensive loss, beginning of period | ($1.60) | ' | ' |
Income tax impact associated with cash flow swaps | 64.2 | 50 | 28.7 |
Accumulated other comprehensive income, end of period | 0.2 | -1.6 | ' |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | Reclassification out of Accumulated Other Comprehensive Income [Member] | ' | ' | ' |
Reclassification out of Accumulated Other Comprehensive Income [Roll Forward] | ' | ' | ' |
Change in fair value of cash flow swaps | 0.9 | ' | ' |
Amortization of terminated cash flow swaps | 2 | ' | ' |
Total amount reclassified to swap interest expense | 2.9 | ' | ' |
Income tax impact associated with cash flow swaps | ($1.10) | ' | ' |
Financial_Instruments_and_Fair6
Financial Instruments and Fair Value (Schedule of Instruments Entered Into for Hedging Purposes) (Details) (USD $) | 12 Months Ended | 12 Months Ended | 12 Months Ended | |||||||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Nov. 30, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | |||
Interest Rate Swap 1 [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap 2 [Member] | ||||
One-Month LIBOR [Member] | One-Month LIBOR [Member] | One-Month LIBOR [Member] | One-Month LIBOR [Member] | One-Month LIBOR [Member] | One-Month LIBOR [Member] | One-Month LIBOR [Member] | One-Month LIBOR [Member] | One-Month LIBOR [Member] | ||||||
Accounts Payable and Accrued Liabilities [Member] | Accounts Payable and Accrued Liabilities [Member] | Other Long-Term Liabilities [Member] | Other Long-Term Liabilities [Member] | Other Long-Term Assets [Member] | ||||||||||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | |||
Notional size | $75 | [1] | $18.40 | $75 | $19.70 | [2] | ' | ' | ' | ' | ' | ' | $18.40 | [1] |
Expiration | 1-Sep-23 | [1] | ' | ' | 1-Oct-15 | [2] | ' | ' | ' | ' | ' | ' | 1-Oct-15 | [1] |
Fair value of interest rate swaps | $0.70 | [1] | ' | ' | ($0.60) | [2] | ($0.30) | ($1.90) | ($0.30) | ($0.10) | ($0.30) | ($2.30) | ($0.40) | [1] |
[1] | The total fair value of our swaps is a $0.3 million net asset, of which $1.9 million is included in Accounts Payable and Accrued Liabilities, $0.1 million is included in Other Long-Term Liabilities and $2.3 million is included in Other Long-Term Assets on the accompanying Consolidated Balance Sheet. | |||||||||||||
[2] | The total fair value of our swap is a $0.6 million net liability, of which $0.3 million is included in Accounts Payable and Accrued Liabilities and $0.3 million is included in Other Long-Term Liabilities, respectively, on the accompanying Consolidated Balance Sheet. |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Operating Loss Carryforwards [Line Items] | ' |
Unrecognized tax benefits that would impact effective rate | $0.30 |
State and Local Jurisdiction [Member] | ' |
Operating Loss Carryforwards [Line Items] | ' |
Operating loss carryforward | $0.40 |
Income_Taxes_Schedule_of_Compo
Income Taxes (Schedule of Components of Income Tax Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' |
Federal | $43.20 | $33 | $15.50 |
State | 4.1 | 1.9 | -0.1 |
Subtotal | 47.3 | 34.9 | 15.4 |
Deferred: | ' | ' | ' |
Federal | 12 | 11.2 | 9.6 |
State | 4.9 | 3.9 | 3.7 |
Subtotal | 16.9 | 15.1 | 13.3 |
Provision for income taxes | $64.20 | $50 | $28.70 |
Income_Taxes_Schedule_of_Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ' | ' | ' |
Provision at the statutory rate | $57.90 | $46.70 | $26.30 |
Increase (decrease) resulting from: | ' | ' | ' |
State income tax expense, net | 5.8 | 3.5 | 2.4 |
(Gain) loss on corporate owned life insurance policies | 0 | -0.5 | 0.1 |
Tax credits received | 0 | 0 | -0.5 |
Other | 0.5 | 0.3 | 0.4 |
Provision for income taxes | $64.20 | $50 | $28.70 |
Income_Taxes_Schedule_of_Defer
Income Taxes (Schedule of Deferred Income Tax Assets and Liabilities) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Reserves and accruals | $23.80 | $26.20 |
Net operating loss (“NOLâ€) carryforwards | 0.3 | 1.8 |
Goodwill amortization | 18.5 | 27.2 |
Depreciation | -20.8 | -18.4 |
Interest rate swaps | -0.1 | 1 |
Other | 0.8 | 0.6 |
Net deferred tax asset | 22.5 | 38.4 |
Deferred tax assets: | ' | ' |
Current | 11 | 11.9 |
Long-term | 50.3 | 66.5 |
Deferred tax liabilities: | ' | ' |
Current | -1.6 | -1 |
Long-term | ($37.20) | ($39) |
Income_Taxes_Schedule_of_Unrec
Income Taxes (Schedule of Unrecognized Benefits) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Beginning Balance | $0.30 | $1 | $1.20 |
Additions for Tax Positions of Prior Year | ' | ' | 0.3 |
Reduction for Lapse of Statute of Limitations | 0 | -0.7 | -0.5 |
Ending Balance | $0.30 | $0.30 | $1 |
Other_LongTerm_Liabilities_Det
Other Long-Term Liabilities (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Other Liabilities Disclosure [Abstract] | ' | ' |
Accrued finance and insurance chargebacks | $12.20 | $8.10 |
Deferred rent | 6.2 | 6.6 |
Interest rate swap liabilities | 1.1 | 1 |
Other | 1 | 1.7 |
Other long-term liabilities | $20.50 | $17.40 |
Discontinued_Operations_and_Di2
Discontinued Operations and Divestitures (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
DealershipLocations | Franchises | Franchises | |
Franchises | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Number of franchises, sold (in franchises) | 1 | ' | ' |
Number of dealership locations, sold (in dealership locations) | 1 | ' | ' |
Franchises, discontinued operations (in franchises) | 1 | 4 | 16 |
Revenues | $3.80 | $113.10 | $231.90 |
Cost of sales | 3.4 | 94.4 | 196.9 |
Gross profit | 0.4 | 18.7 | 35 |
Operating expenses | 2.1 | 20.4 | 34.9 |
Impairment expenses | 0 | 2 | 0 |
(Loss) income from operations | -1.7 | -3.7 | 0.1 |
Other expense, net | 0 | -0.2 | -1.1 |
Gain on sale of assets | 14.6 | 2.1 | 35.9 |
(Loss) Income before income taxes | 12.9 | -1.8 | 34.9 |
Income tax expense (benefit) | -4.9 | 0.7 | -13.5 |
Discontinued operations, net of tax | $8 | ($1.10) | $21.40 |
Mid-Line Import Franchises [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Franchises, discontinued operations (in franchises) | 1 | 1 | 2 |
Heavy Trucks Franchises [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Franchises, discontinued operations (in franchises) | 0 | 0 | 10 |
Luxury Franchises [Member] | ' | ' | ' |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' |
Franchises, discontinued operations (in franchises) | 0 | 3 | 4 |
Supplemental_Cash_Flow_Informa2
Supplemental Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' |
Interest payments made including amounts capitalized | $52.40 | $46.10 | $52.30 |
Cash paid during the period related to floor plan interest | 12.2 | 10.5 | 11 |
Income tax payments, net of refunds received | 60.1 | 32.8 | 15.4 |
Trade receivables sold | 13.8 | 18.7 | 22.6 |
Discount on trade receivables sold | 0.3 | 0.4 | 0.6 |
Loaner vehicles transferred from other current assets to inventory | 61.9 | 54.6 | 36.4 |
Purchase price of previously leased real estate | 35.7 | 17.5 | 30.3 |
Loss on termination of related lease obligations | 5.5 | 1.8 | 1 |
Proceeds received from deferred compensation plan termination | 7.8 | 0 | ' |
Distribution of deferred compensation liability to plan participants | $7.80 | $0 | ' |
Supplemental_Cash_Flow_Informa3
Supplemental Cash Flow Information (Schedule of Other Adjustments to Reconcile Net Income to Cash Flow from Operating Activities) (Details) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Cash Flow Elements [Abstract] | ' | ' | ' |
Operating Leases, Rent Expense, Accelerated Rent Expense Associated with Abandoned Rental Properties | $0 | $0.70 | $0.20 |
Amortization of Financing Costs | 2.4 | 2.5 | 2.7 |
Amortization of Debt Discount (Premium) | 0 | 0.4 | 0.8 |
Other Noncash Income (Expense), Other | 0.6 | 2.4 | 0.2 |
Other Noncash Income (Expense) | ($3) | ($6) | ($3.90) |
Lease_Obligations_Details
Lease Obligations (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
transaction | transaction | ||
capital_lease_obligation | |||
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating lease rent expense | $32.90 | $35.50 | $36.30 |
Number of capital lease obligations | 1 | ' | ' |
Capital lease obligations | 3.7 | 3.9 | ' |
Capital lease obligations, amortization period (in years) | '20 years | ' | ' |
Previously leased real estate purchased, number of purchases | 4 | ' | 2 |
Previously leased real estate purchased, purchase price | 35.7 | 17.5 | 30.3 |
Prevoiusly leased real estate purchased, number of purchases related to termination of lease obligation not currently used in operations | ' | ' | 1 |
Previously leased real estate purchased, loss due to termination of related lease obligations | $5.50 | $1.80 | $1 |
Minimum [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating leases, remaining term | '1 year | ' | ' |
Maximum [Member] | ' | ' | ' |
Operating Leased Assets [Line Items] | ' | ' | ' |
Operating leases, remaining term | '20 years | ' | ' |
Lease_Obligations_Schedule_of_
Lease Obligations (Schedule of Minimum Lease Payments) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Future Minimum Payments under Long-term, Non-cancelable Operating Leases | ' |
2014 | $31.30 |
2015 | 29.3 |
2016 | 28.3 |
2017 | 26.1 |
2018 | 23.1 |
Thereafter | 92.7 |
Total minimum lease payments | $230.80 |
Commitments_and_Contingencies_
Commitments and Contingencies (Details) (Guarantee Obligations [Member], USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Guarantee Obligations [Member] | ' |
Loss Contingencies [Line Items] | ' |
Amount of letters of credit outstanding | $14.60 |
Amount of surety bond line maintained | $5 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
transaction | transaction | ||
Related Party Transaction [Line Items] | ' | ' | ' |
Previously leased real estate purchased, number of purchases | 4 | ' | 2 |
Previously leased real estate purchased, purchase price | $35.70 | $17.50 | $30.30 |
Capital leases, recorded in Long-Term Debt | 3.7 | 3.9 | ' |
Board of DIrectors Members and Management Team Member [Member] | Operating Lease Rental Payments [Member] | ' | ' | ' |
Related Party Transaction [Line Items] | ' | ' | ' |
Related party transaction, amounts of transaction | $2.20 | $2.20 | $2.30 |
Sharebased_Compensation_and_Em2
Share-based Compensation and Employee Benefit Plans (Share-based Compensation) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Share_based_compensation_plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Number of share-based compensation plans (in plans) | 3 | ' | ' |
Number of shares still available for grant across all plans (in shares) | 1.3 | ' | ' |
Share-based compensation expense | $9 | $7.10 | $8.80 |
Share-based compensation expense, tax benefit | 3.5 | 2.7 | 3.4 |
Total unrecognized share-based compensation expense related to nonvested awards | 9.6 | ' | ' |
Expected future recognition of unrecognized compensation expense related to nonvested share-based awards, 2014 | 5.2 | ' | ' |
Expected future recognition of unrecognized compensation expense related to nonvested share-based awards, 2015 | 2.5 | ' | ' |
Expected future recognition of unrecognized compensation expense related to nonvested share-based awards, 2016 | 1.7 | ' | ' |
Net cash proceeds from option exercised during period | 0.2 | ' | ' |
Intrinsic value of options exercised during period | 0.4 | 13.2 | 8.8 |
Tax benefit realized for tax deductions from option exercises | $0.10 | $4.40 | ' |
Stock Options [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period (in years) | '3 years | ' | ' |
Expiration period (in years) | '10 years | ' | ' |
Cumulative shares granted to date (in shares) | 5.8 | ' | ' |
Performance Share Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period (in years) | '3 years | ' | ' |
Cumulative shares granted to date (in shares) | 1.6 | ' | ' |
Performance Share Units [Member] | Minimum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of target number of shares to be granted to shareholder | 0.00% | ' | ' |
Performance Share Units [Member] | Maximum [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Percentage of target number of shares to be granted to shareholder | 150.00% | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period (in years) | '3 years | ' | ' |
Cumulative shares granted to date (in shares) | 1.3 | ' | ' |
Restricted Share Units [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' |
Vesting period (in years) | '3 years | ' | ' |
Cumulative shares granted to date (in shares) | 0.1 | ' | ' |
Sharebased_Compensation_and_Em3
Share-based Compensation and Employee Benefit Plans (Schedule of Options Outstanding and Exercisable Under the Plans) (Details) (USD $) | 12 Months Ended | |||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | |
Options outstanding, beginning balance (in shares) | 20,253 | 692,995 | 1,538,978 | |
Granted (in shares) | 0 | 0 | 0 | |
Exercised (in shares) | -12,086 | -644,241 | -777,982 | |
Expired / Forfeited (in shares) | 0 | -28,501 | -68,001 | |
Options outstanding, ending balance (in shares) | 8,167 | 20,253 | 692,995 | |
Exercisable, oustanding (in shares) | 8,167 | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' | ' | ' | |
Outstanding, beginning balance, weighted average exercise price (in dollars per share) | $14.10 | $6.38 | $7.37 | |
Granted, weighted average exercise price (in dollars per share) | $0 | $0 | $0 | |
Exercised, weighted average exercise price (in dollars per share) | $14.13 | $6.01 | $8.48 | |
Expired / Forfeited, weighted average exercise price (in dollars per share) | $0 | $9.19 | $4.82 | |
Outstanding, ending balance, weighted average exercise price (in dollars per share) | $14.05 | $14.10 | $6.38 | |
Exercisable, weight average exercise price (in dollars per share) | $14.05 | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | |
Oustanding, weight average remaining contractual term (in years) | '1 year | ' | ' | |
Exercisable, weighted average remaining contractual term (in years) | '1 year | ' | ' | |
Outstanding, aggregate intrinsic value | $0.30 | [1] | ' | ' |
Exercisable, aggregate intrinsic value | $0.30 | [1] | ' | ' |
Common Stock [Member] | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | |
Closing share price (in dollars per share) | $53.74 | ' | ' | |
[1] | Based on the closing price of our common stock on December 31, 2013, which was $53.74 per share. |
Sharebased_Compensation_and_Em4
Share-based Compensation and Employee Benefit Plans (Schedule of Performance Share Units) (Details) (Performance Share Units [Member], USD $) | 12 Months Ended | |||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||
Performance Share Units [Member] | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' | |
Outsanding, beginning balance (in shares) | 282,764 | 243,150 | 378,126 | |
Granted (in shares) | 143,710 | 109,400 | 146,480 | |
Performance estimate (in shares) | 48,350 | 65,247 | -42,242 | |
Vested (in shares) | -144,711 | -115,483 | -218,430 | |
Forfeited (in shares) | -400 | -19,550 | -20,784 | |
Outsanding, ending balance (in shares) | 329,713 | [1] | 282,764 | 243,150 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' | |
Outstanding, beginning balance, weighted average grant date fair value (in dollars per share) | $20.82 | $14.91 | $12.48 | |
Granted, weighted average grant date fair value (in dollars per share) | $34.98 | $25.42 | $18.92 | |
Performance estimate, weighted average grant date fair value (in dollars per share) | $34.98 | $22.05 | $17.81 | |
Vested, weighted average grant date fair value (in dollars per share) | $18.35 | $14.70 | $14.40 | |
Forfeited, weighted average grant date fair value (in dollars per share) | $25.42 | $14.76 | $12.31 | |
Outstanding, ending balance, weighted average grant date fair value (in dollars per share) | $30.12 | [1] | $20.82 | $14.91 |
Maximum shares issuable upon attaining certain metrics (in shares) | 335,098 | ' | ' | |
[1] | Maximum of 335,098 issuable upon attaining certain performance metrics. |
Sharebased_Compensation_and_Em5
Share-based Compensation and Employee Benefit Plans (Schedule of Restricted Stock) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Restricted Stock [Member] | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' |
Outsanding, beginning balance (in shares) | 436,841 | 444,268 | 531,446 |
Granted (in shares) | 98,251 | 216,676 | 228,840 |
Vested (in shares) | -157,220 | -179,675 | -270,742 |
Forfeited (in shares) | -11,748 | -44,428 | -45,276 |
Outsanding, ending balance (in shares) | 366,124 | 436,841 | 444,268 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' | ' | ' |
Outstanding, beginning balance, weighted average grant date fair value (in dollars per share) | $19.55 | $16.08 | $12.19 |
Granted, weighted average grant date fair value (in dollars per share) | $35.03 | $23.84 | $19.15 |
Vested, weighted average grant date fair value (in dollars per share) | $17.71 | $14.60 | $12.64 |
Forfeited, weighted average grant date fair value (in dollars per share) | $20.72 | $13.29 | $12.37 |
Outstanding, ending balance, weighted average grant date fair value (in dollars per share) | $25.79 | $19.55 | $16.08 |
Sharebased_Compensation_and_Em6
Share-based Compensation and Employee Benefit Plans (Employee Benefit Plans) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Employee Retirement Plan: | ' | ' | ' |
Maximum annual contributions per employee, percent | 75.00% | ' | ' |
Maximum annual contribution per employee | $17,500 | ' | ' |
Minimum salary threshold designating highly compensated employees | 115,000 | ' | ' |
Employer matching contribution, employment requirement period for matching eligibility, minimum | '1 year | ' | ' |
Employer matching contribution after one year of employment, percent | 37.50% | ' | ' |
Employer matching contribution, percent of employees' gross pay | 4.00% | ' | ' |
Maximum employer annual matching contribution of employee's gross salary | 1,725 | ' | ' |
Employers matching contribution, vesting period after date of hire (in years) | '4 years | ' | ' |
Employer matching contributions | 1,100,000 | 500,000 | 1,000,000 |
Deferred Compensation Plan: | ' | ' | ' |
Deferred compensation plan, termination, lump sum distribution received | 7,800,000 | ' | ' |
Total deferred compensation liability | 7,800,000 | ' | ' |
Deferred compensation plan, cash surrender value of life insurance contracts | 0 | 7,700,000 | ' |
Age 50 or More [Member] | ' | ' | ' |
Employee Retirement Plan: | ' | ' | ' |
Maximum annual contribution per employee | 23,000 | ' | ' |
Highly Compensated Employees [Member] | ' | ' | ' |
Employee Retirement Plan: | ' | ' | ' |
Maximum annual contribution per employee | 10,000 | ' | ' |
Highly Compensated Employees, Age 50 or More [Member] | ' | ' | ' |
Employee Retirement Plan: | ' | ' | ' |
Maximum annual contribution per employee | $15,500 | ' | ' |
Minimum [Member] | ' | ' | ' |
Employee Retirement Plan: | ' | ' | ' |
Period of eligibility to participate in benefit plan (in days) | '90 days | ' | ' |
Condensed_Quarterly_Revenues_a2
Condensed Quarterly Revenues and Earnings (Unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 | Jun. 30, 2012 | Mar. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | ||||||||
Schedule of Quarterly Financial Information [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Revenues | $1,373.90 | [1] | $1,390.30 | [1] | $1,345.30 | [1] | $1,225.40 | [1] | $1,219.20 | [1] | $1,191.10 | [1] | $1,161.50 | [1] | $1,070 | [1] | $5,334.90 | $4,641.80 | $4,141.40 |
Gross profit | 222.5 | [1] | 225.7 | [1] | 222.6 | [1] | 206.7 | [1] | 194.5 | [1] | 194.2 | [1] | 191.8 | [1] | 184.5 | [1] | 877.5 | 765 | 700.3 |
Net income | $26.90 | $22.70 | $27 | $32.50 | $22.80 | [1] | $20.70 | [1] | $21.10 | [1] | $17.60 | [1] | $109.10 | $82.20 | $67.90 | ||||
Net income per share: | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||||||||
Basic (in dollars per share) | $0.88 | $0.74 | $0.88 | $1.05 | $0.74 | [2] | $0.67 | [2] | $0.68 | [2] | $0.57 | [2] | $3.55 | $2.64 | $2.14 | ||||
Diluted (in dollars per share) | $0.87 | $0.73 | $0.87 | $1.04 | $0.73 | [2] | $0.66 | [2] | $0.67 | [2] | $0.56 | [2] | $3.51 | $2.61 | $2.08 | ||||
[1] | Quarterly revenues, gross profit and net income may not agree to previously reported amounts on Form 10-Q as a result of subsequent discontinued operations or reclassifications of amounts in order to conform to current presentation. | ||||||||||||||||||
[2] | The sum of income per common share for the four quarters does not equal total income per common share due to changes in the average number of shares outstanding during the respective periods. |
Subsequent_Events_Details
Subsequent Events (Details) (Subsequent Event [Member], USD $) | 1 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 |
Subsequent Event [Member] | ' |
Subsequent Event [Line Items] | ' |
Business combination, estimated annualized revenues | $20 |