Document_and_Entity_Informatio
Document and Entity Information | 3 Months Ended | |
Mar. 31, 2014 | Apr. 22, 2014 | |
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-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q1 | ' |
Amendment Flag | 'false | ' |
Entity Common Stock, Shares Outstanding | ' | 30,658,060 |
CONDENSED_CONSOLIDATED_BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | ||
CURRENT ASSETS: | ' | ' | ||
Cash and cash equivalents | $6,100,000 | $5,400,000 | ||
Contracts-in-transit | 131,900,000 | 140,900,000 | ||
Accounts receivable (net of allowance of $0.9 and $1.0, respectively) | 88,100,000 | 95,700,000 | ||
Inventories | 772,300,000 | 767,700,000 | ||
Deferred income taxes | 9,500,000 | 9,400,000 | ||
Assets held for sale | 11,700,000 | 9,100,000 | ||
Other current assets | 76,000,000 | 80,400,000 | ||
Total current assets | 1,095,600,000 | 1,108,600,000 | ||
PROPERTY AND EQUIPMENT, net | 656,100,000 | 651,500,000 | ||
GOODWILL | 58,100,000 | 54,500,000 | ||
DEFERRED INCOME TAXES, net of current portion | 13,300,000 | 13,100,000 | ||
OTHER LONG-TERM ASSETS | 60,000,000 | 60,900,000 | ||
Total assets | 1,883,100,000 | 1,888,600,000 | ||
CURRENT LIABILITIES: | ' | ' | ||
Floor plan notes payable—trade | 60,300,000 | 74,700,000 | ||
Floor plan notes payable—non-trade | 513,800,000 | 534,800,000 | ||
Current maturities of long-term debt | 11,400,000 | [1] | 11,100,000 | [1] |
Accounts payable and accrued liabilities | 224,500,000 | 213,600,000 | ||
Total current liabilities | 810,000,000 | 834,200,000 | ||
LONG-TERM DEBT | 540,400,000 | 543,300,000 | ||
OTHER LONG-TERM LIABILITIES | 21,000,000 | 20,500,000 | ||
COMMITMENTS AND CONTINGENCIES (Note 10) | 0 | 0 | ||
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; 40,291,487 and 40,095,557 shares issued, including shares held in treasury, respectively | 400,000 | 400,000 | ||
Additional paid-in capital | 515,400,000 | 510,500,000 | ||
Retained earnings | 194,900,000 | 163,500,000 | ||
Treasury stock, at cost; 9,618,277 and 9,330,443 shares, respectively | -198,700,000 | -184,000,000 | ||
Accumulated other comprehensive (loss) income | -300,000 | 200,000 | ||
Total shareholders' equity | 511,700,000 | 490,600,000 | ||
Total liabilities and shareholders' equity | $1,883,100,000 | $1,888,600,000 | ||
[1] | $8.9 million of unamortized premium as of March 31, 2014. |
CONDENSED_CONSOLIDATED_BALANCE1
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for doubtful accounts | $0.90 | $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) | 40,291,487 | 40,095,557 |
Treasury stock, shares (in shares) | 9,618,277 | 9,330,443 |
CONDENSED_CONSOLIDATED_STATEME
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (USD $) | 3 Months Ended | |
In Millions, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
REVENUES: | ' | ' |
New vehicle | $726 | $664.50 |
Used vehicle | 416.9 | 366.3 |
Parts and service | 159.4 | 147.6 |
Finance and insurance, net | 53.4 | 47 |
Total revenues | 1,355.70 | 1,225.40 |
COST OF SALES: | ' | ' |
New vehicle | 680.6 | 623.8 |
Used vehicle | 382.9 | 335 |
Parts and service | 62.1 | 60.3 |
Total cost of sales | 1,125.60 | 1,019.10 |
GROSS PROFIT | 230.1 | 206.3 |
OPERATING EXPENSES: | ' | ' |
Selling, general and administrative | 159.8 | 147.7 |
Depreciation and amortization | 6.3 | 5.9 |
Other operating (income) expense, net | -0.2 | 0.1 |
Income from operations | 64.2 | 52.6 |
OTHER EXPENSES: | ' | ' |
Floor plan interest expense | -3 | -3.1 |
Other interest expense, net | -9.1 | -9.2 |
Swap interest expense | -0.6 | -1.2 |
Total other expenses, net | -12.7 | -13.5 |
Income before income taxes | 51.5 | 39.1 |
INCOME TAX EXPENSE | 20 | 15.2 |
INCOME FROM CONTINUING OPERATIONS | 31.5 | 23.9 |
DISCONTINUED OPERATIONS, net of tax | -0.1 | 8.6 |
NET INCOME | $31.40 | $32.50 |
Basicb | ' | ' |
Continuing operations (in dollars per share) | $1.04 | $0.77 |
Discontinued operations (in dollars per share) | ($0.01) | $0.28 |
Net income (in dollars per share) | $1.03 | $1.05 |
Dilutedb | ' | ' |
Continuing operations (in dollars per share) | $1.03 | $0.77 |
Discontinued operations (in dollars per share) | ($0.01) | $0.27 |
Net income (in dollars per share) | $1.02 | $1.04 |
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: | ' | ' |
Basic (in shares) | 30.4 | 30.9 |
Restricted stock (in shares) | 0.2 | 0.2 |
Performance share units (in shares) | 0.1 | 0.1 |
Diluted (in shares) | 30.7 | 31.2 |
CONDENSED_CONSOLIDATED_STATEME1
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' |
Net income | $31.40 | $32.50 |
Other comprehensive (loss) income b net of tax: | ' | ' |
Change in fair value of cash flow swaps | -0.8 | 0.1 |
Amortization of terminated cash flow swaps | 0 | 1.1 |
Income tax benefit (expense) associated with cash flow swaps | 0.3 | -0.5 |
Comprehensive income | $30.90 | $33.20 |
CONDENSED_CONSOLIDATED_STATEME2
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
CASH FLOW FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $31.40 | $32.50 |
Adjustments to reconcile net income to net cash provided by operating activitiesb | ' | ' |
Depreciation and amortization | 6.3 | 5.9 |
Stock-based compensation | 2.5 | 2.5 |
Deferred income taxes | 0.1 | 1.2 |
Loaner vehicle amortization | 3.1 | 2.5 |
Excess tax benefit on share-based arrangements | -2.4 | -2 |
Gain on sale of assets, net | 0 | -14.6 |
Other adjustments, net | 0.3 | 1.4 |
Changes in operating assets and liabilities, net of acquisitions and divestituresb | ' | ' |
Contracts-in-transit | 9 | 13.2 |
Accounts receivable | 5.7 | 12.4 |
Proceeds from the sale of accounts receivable | 2 | 4.1 |
Inventories | 12.6 | -39.6 |
Other current assets | -12.7 | -21.1 |
Floor plan notes payablebtrade | -14.4 | 5.5 |
Accounts payable and accrued liabilities | 11 | 3.8 |
Proceeds from deferred compensation plan termination | 0 | 7.8 |
Distribution of deferred compensation plan assets to participants | 0 | -7.8 |
Other long-term assets and liabilities, net | 0.1 | 0.7 |
Net cash provided by operating activities | 54.6 | 8.4 |
CASH FLOW FROM INVESTING ACTIVITIES: | ' | ' |
Capital expendituresbexcluding real estate | -13.3 | -6.2 |
Capital expendituresbcapitalized interest | -0.4 | -0.3 |
Acquisitions | 4.6 | 0 |
Proceeds from the sale of assets | 0 | 33.9 |
Net cash (used in) provided by investing activities | -18.3 | 27.4 |
CASH FLOW FROM FINANCING ACTIVITIES: | ' | ' |
Floor plan borrowingsbnon-trade | 759 | 730.5 |
Floor plan borrowingsbacquisitions | 0.5 | 0 |
Floor plan repaymentsbnon-trade | -780.5 | -768.7 |
Floor plan repaymentsbnon-trade divestitures | 0 | -5.4 |
Proceeds from borrowings | 0 | 12.5 |
Repayments of borrowings | -2.3 | -1.2 |
Payment of debt issuance costs | 0 | -0.1 |
Repurchases of common stock, including those associated with net share settlement of employee share-based awards | -14.7 | -11.6 |
Excess tax benefit on share-based arrangements | 2.4 | 2 |
Proceeds from the exercise of stock options | 0 | 0.1 |
Net cash used in financing activities | -35.6 | -41.9 |
Net increase (decrease) in cash and cash equivalents | 0.7 | -6.1 |
CASH AND CASH EQUIVALENTS, beginning of period | 5.4 | 6.2 |
CASH AND CASH EQUIVALENTS, end of period | $6.10 | $0.10 |
DESCRIPTION_OF_BUSINESS
DESCRIPTION OF BUSINESS | 3 Months Ended | |
Mar. 31, 2014 | ||
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 101 franchises (80 dealership locations) in 18 metropolitan markets within 10 states as of March 31, 2014. 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 March 31, 2014, we offered 29 domestic and foreign brands of new vehicles. Our current brand mix is weighted 85% towards luxury and mid-line import brands, with the remaining 15% 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 results of 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 | 3 Months Ended |
Mar. 31, 2014 | |
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 Condensed 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 condensed consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying condensed 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. | |
In the opinion of management, all adjustments (consisting only of normal, recurring adjustments) considered necessary for a fair presentation of the condensed consolidated financial statements as of March 31, 2014, and for the three months ended March 31, 2014 and 2013, have been included. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for any other interim period, or any full year period. Our condensed consolidated financial statements should be read together with our consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
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 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 Condensed Consolidated Statements of Income. | |
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 | |
Certain amounts reflected in the accompanying Condensed Consolidated Balance Sheets have been classified as Assets Held for Sale, and from time to time may be reflected on the consolidated balance sheets as Liabilities Associated with Assets Held for Sale, with such classification beginning on the date that the assets and any 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 Condensed Consolidated Statements of Income for the three months ended March 31, 2013 have been reclassified to reflect the results of franchises sold or closed subsequent to March 31, 2013 as if we had classified those franchises as discontinued operations for all periods 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 used vehicles (together referred to as “Floor Plan Notes Payable-Non-Trade”), are classified as financing activities on the accompanying Condensed 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 Condensed 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 Condensed Consolidated Statements of Cash Flows. The cash outflow to acquire loaner vehicles is presented in Other Current Assets in the accompanying Condensed Consolidated Statements of Cash Flows. Borrowings and repayments of loaner vehicle notes payable are presented in Accounts Payable and Accrued Liabilities in the accompanying Condensed 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 Condensed Consolidated Statements of Cash Flows. The cash inflow from the sale of loaner vehicles is reflected in Inventories in the accompanying Condensed Consolidated Statements of Cash Flows. | |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (the “FASB”) issued an accounting standard that raises the threshold for disposals to qualify as discontinued operations and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The standard revised the definition of a discontinued operation to cover only asset disposals that are considered to be a strategic shift with a major impact on an entity's operations and finances, such as the disposal of a major geographic area or a significant line of business. Application of the standard, which is to be applied prospectively, is required for fiscal years beginning on or after December 15, 2014, and for interim periods within that year. We currently plan to adopt the standard in January 2015. | |
Based on our initial assessment of the standard, we expect that any potential future disposals of our dealerships will not be reported as discontinued operations and that the results of operations of any such disposed dealerships, including revenues, costs and any gains or losses on disposal, will be classified as continuing operations within our Consolidated Statements of Income for all periods presented through the date of disposition. |
ACQUISITIONS
ACQUISITIONS | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Business Combinations [Abstract] | ' | |||
ACQUISITIONS | ' | |||
ACQUISITIONS | ||||
Results of acquired dealerships are included in our accompanying Condensed 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 consideration transferred over the estimated fair values of the identifiable net assets acquired recorded as goodwill. | ||||
In January 2014, we acquired the assets of one franchise in our existing market of Greenville, South Carolina for an aggregate purchase price of $4.6 million. Upon acquisition, this franchise was integrated with one of our existing dealership locations in Greenville. We financed this acquisition with $4.1 million of cash and $0.5 million of floor plan borrowings for the purchase of the related new vehicle inventory. | ||||
Below is the allocation of purchase price for the acquisition completed during the three months ended March 31, 2014. The $4.1 million of goodwill and manufacturer franchise rights associated with this acquisition will be deductible for federal and state income taxes ratably over a 15 year period. | ||||
As of March 31, 2014 | ||||
(In millions) | ||||
Inventory | $ | 0.5 | ||
Goodwill | 3.6 | |||
Manufacturer franchise rights | 0.5 | |||
Total purchase price | $ | 4.6 | ||
INVENTORIES
INVENTORIES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
INVENTORIES | ' | |||||||
INVENTORIES | ||||||||
Inventories consisted of the following: | ||||||||
As of | ||||||||
31-Mar-14 | December 31, 2013 | |||||||
(In millions) | ||||||||
New vehicles | $ | 591.6 | $ | 605.2 | ||||
Used vehicles | 139.2 | 121.8 | ||||||
Parts and accessories | 41.5 | 40.7 | ||||||
Total inventories | $ | 772.3 | $ | 767.7 | ||||
The lower of cost or market reserves reduced total inventory cost by $6.1 million and $6.0 million as of March 31, 2014 and December 31, 2013, respectively. As of March 31, 2014 and December 31, 2013, certain automobile manufacturer incentives reduced new vehicle inventory cost by $6.8 million and $7.4 million, respectively, and reduced new vehicle cost of sales from continuing operations for the three months ended March 31, 2014 and March 31, 2013 by $7.0 million and $5.9 million, respectively. |
ASSETS_AND_LIABILITIES_HELD_FO
ASSETS AND LIABILITIES HELD FOR SALE | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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. | ||||||||
Real estate not currently used in our operations that we are actively marketing to sell totaled $11.7 million and $9.1 million as of March 31, 2014 and December 31, 2013, respectively. There were no liabilities associated with our real estate assets held for sale as of March 31, 2014 or December 31, 2013. | ||||||||
A summary of assets held for sale is as follows: | ||||||||
As of | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(In millions) | ||||||||
Assets: | ||||||||
Property and equipment, net | $ | 11.7 | $ | 9.1 | ||||
Total assets | $ | 11.7 | $ | 9.1 | ||||
LONGTERM_DEBT
LONG-TERM DEBT | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
LONG-TERM DEBT | ' | |||||||
LONG-TERM DEBT | ||||||||
Long-term debt consists of the following: | ||||||||
As of | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(In millions) | ||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 300 | $ | 300 | ||||
Mortgage notes payable bearing interest at fixed and variable rates | 164.9 | 166.5 | ||||||
Real estate credit agreement | 74.3 | 75 | ||||||
Capital lease obligations | 3.7 | 3.7 | ||||||
542.9 | 545.2 | |||||||
Add: unamortized premium on 8.375% Senior Subordinated Notes due 2020 | 8.9 | 9.2 | ||||||
Long-term debt, including current portion | 551.8 | 554.4 | ||||||
Less: current portion (a) | (11.4 | ) | (11.1 | ) | ||||
Long-term debt | $ | 540.4 | $ | 543.3 | ||||
______________________________ | ||||||||
(a) | Includes $1.1 million of the $8.9 million of unamortized premium as of March 31, 2014. | |||||||
Asbury Automotive Group, Inc. is a holding company with no independent assets or operations. For all periods presented, our 8.375% Senior Subordinated Notes due 2020 (the “8.375% 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 March 31, 2014, 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 | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
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 that 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 that do not have a high trading volume. A summary of the carrying values and fair values of our 8.375% Notes is as follows: | |||||||||||||||
As of | |||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||
(In millions) | |||||||||||||||
Carrying Value: | |||||||||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 308.9 | $ | 309.2 | |||||||||||
Total carrying value | $ | 308.9 | $ | 309.2 | |||||||||||
Fair Value: | |||||||||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 336 | $ | 336.8 | |||||||||||
Total fair value | $ | 336 | $ | 336.8 | |||||||||||
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 was $74.3 million as of March 31, 2014 and 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 $18.1 million as of March 31, 2014. 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 Condensed Consolidated Statements of Income, including the impact on Accumulated Other Comprehensive Income ("AOCI") (in millions): | |||||||||||||||
For the Three Months Ended March 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) | |||||||||||||||
2014 | Interest rate swaps | ($1.30) | Swap interest expense | ($0.50) | $— | $— | N/A | ||||||||
2013 | Interest rate swaps | $— | Swap interest expense | ($0.10) | ($1.10) | $— | N/A | ||||||||
On the basis of yield curve conditions as of March 31, 2014, 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 income — December 31, 2013 | $ | 0.2 | |||||||||||||
Change in fair value of cash flow swaps | (0.8 | ) | |||||||||||||
Amortization of terminated cash flow swaps | — | ||||||||||||||
Total amount reclassified to swap interest expense | (0.8 | ) | |||||||||||||
Income tax impact associated with cash flow swaps | 0.3 | ||||||||||||||
Accumulated other comprehensive loss — March 31, 2014 | $ | (0.3 | ) | ||||||||||||
Market Risk Disclosures as of March 31, 2014: | |||||||||||||||
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* | $74.30 | 1 month LIBOR | Sep-23 | $ | (0.2 | ) | |||||||||
Interest Rate Swap* | $18.10 | 1 month LIBOR | Oct-15 | $ | (0.3 | ) | |||||||||
____________________________ | |||||||||||||||
* The total fair value of our swaps is a $0.5 million net liability, of which $1.9 million is included in Accounts Payable and Accrued Liabilities, $0.1 million is included in Other Long-Term Liabilities and $1.5 million is included in Other Long-Term Assets on the accompanying Condensed Consolidated Balance Sheet. | |||||||||||||||
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* | $75.00 | 1 month LIBOR | Sep-23 | $ | 0.7 | ||||||||||
Interest Rate Swap* | $18.40 | 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 Condensed Consolidated Balance Sheet. |
DISCONTINUED_OPERATIONS_AND_DI
DISCONTINUED OPERATIONS AND DIVESTITURES | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
DISCONTINUED OPERATIONS AND DIVESTITURES | ' | |||||||
DISCONTINUED OPERATIONS AND DIVESTITURES | ||||||||
As of March 31, 2014, 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 March 31, 2014. | ||||||||
The following tables provide further information regarding our discontinued operations as of March 31, 2014, and includes the results of businesses sold prior to March 31, 2014: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In millions, except franchise data) | ||||||||
Franchises: | ||||||||
Mid-line import | — | 1 | ||||||
Total | — | 1 | ||||||
Revenues | $ | — | $ | 3.8 | ||||
Cost of sales | — | 3.4 | ||||||
Gross profit | — | 0.4 | ||||||
Operating expenses | 0.3 | 0.9 | ||||||
Loss from operations | (0.3 | ) | (0.5 | ) | ||||
Other expense, net | — | (0.1 | ) | |||||
Gain on disposition | — | 14.6 | ||||||
(Loss) income before income taxes | (0.3 | ) | 14 | |||||
Income tax benefit (expense) | 0.2 | (5.4 | ) | |||||
Discontinued operations, net of tax | $ | (0.1 | ) | $ | 8.6 | |||
SUPPLEMENTAL_CASH_FLOW_INFORMA
SUPPLEMENTAL CASH FLOW INFORMATION | 3 Months Ended |
Mar. 31, 2014 | |
Supplemental Cash Flow Information [Abstract] | ' |
SUPPLEMENTAL CASH FLOW INFORMATION | ' |
SUPPLEMENTAL CASH FLOW INFORMATION | |
During the three months ended March 31, 2014 and 2013, we made interest payments, including amounts capitalized, totaling $6.5 million and $10.6 million, respectively. Included in these interest payments are $3.3 million and $2.9 million, of floor plan interest payments for the three months ended March 31, 2014 and 2013, respectively. | |
During the three months ended March 31, 2013, we made income tax payments, net of refunds received, totaling $0.8 million. We did not make any material income tax payments or receive any income tax refunds during the three months ended March 31, 2014. | |
During the three months ended March 31, 2014, we sold $2.0 million of trade receivables at an immaterial discount. During the three months ended March 31, 2013, we sold $4.2 million of trade receivables at a discount of $0.1 million. | |
During the three months ended March 31, 2014 and 2013, we transferred $16.6 million and $16.7 million, respectively, of loaner vehicles from Other Current Assets to Inventory on our Condensed Consolidated Balance Sheets. |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2014 | |
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 March 31, 2014, which are required by certain of our insurance providers. In addition, as of March 31, 2014, 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. |
SUMMARY_OF_SIGNIFICANT_ACCOUNT1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Abstract] | ' |
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 Condensed 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 condensed consolidated financial statements in the period they are determined to be necessary. Significant estimates made in the accompanying condensed 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. | |
In the opinion of management, all adjustments (consisting only of normal, recurring adjustments) considered necessary for a fair presentation of the condensed consolidated financial statements as of March 31, 2014, and for the three months ended March 31, 2014 and 2013, have been included. The results of operations for the three months ended March 31, 2014 are not necessarily indicative of the results that may be expected for any other interim period, or any full year period. Our condensed consolidated financial statements should be read together with our consolidated financial statements and the notes thereto contained in our Annual Report on Form 10-K for the year ended December 31, 2013. | |
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 Condensed 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 Condensed Consolidated Balance Sheets have been classified as Assets Held for Sale, and from time to time may be reflected on the consolidated balance sheets as Liabilities Associated with Assets Held for Sale, with such classification beginning on the date that the assets and any 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 Condensed Consolidated Statements of Income for the three months ended March 31, 2013 have been reclassified to reflect the results of franchises sold or closed subsequent to March 31, 2013 as if we had classified those franchises as discontinued operations for all periods 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 used vehicles (together referred to as “Floor Plan Notes Payable-Non-Trade”), are classified as financing activities on the accompanying Condensed 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 Condensed 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 Condensed Consolidated Statements of Cash Flows. The cash outflow to acquire loaner vehicles is presented in Other Current Assets in the accompanying Condensed Consolidated Statements of Cash Flows. Borrowings and repayments of loaner vehicle notes payable are presented in Accounts Payable and Accrued Liabilities in the accompanying Condensed 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 Condensed Consolidated Statements of Cash Flows. The cash inflow from the sale of loaner vehicles is reflected in Inventories in the accompanying Condensed Consolidated Statements of Cash Flows. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
In April 2014, the Financial Accounting Standards Board (the “FASB”) issued an accounting standard that raises the threshold for disposals to qualify as discontinued operations and requires new disclosures of both discontinued operations and certain other disposals that do not meet the definition of a discontinued operation. The standard revised the definition of a discontinued operation to cover only asset disposals that are considered to be a strategic shift with a major impact on an entity's operations and finances, such as the disposal of a major geographic area or a significant line of business. Application of the standard, which is to be applied prospectively, is required for fiscal years beginning on or after December 15, 2014, and for interim periods within that year. We currently plan to adopt the standard in January 2015. | |
Based on our initial assessment of the standard, we expect that any potential future disposals of our dealerships will not be reported as discontinued operations and that the results of operations of any such disposed dealerships, including revenues, costs and any gains or losses on disposal, will be classified as continuing operations within our Consolidated Statements of Income for all periods presented through the date of disposition. |
ACQUISITIONS_Tables
ACQUISITIONS (Tables) | 3 Months Ended | |||
Mar. 31, 2014 | ||||
Business Combinations [Abstract] | ' | |||
Schedule of Business Acquisitions | ' | |||
Below is the allocation of purchase price for the acquisition completed during the three months ended March 31, 2014. The $4.1 million of goodwill and manufacturer franchise rights associated with this acquisition will be deductible for federal and state income taxes ratably over a 15 year period. | ||||
As of March 31, 2014 | ||||
(In millions) | ||||
Inventory | $ | 0.5 | ||
Goodwill | 3.6 | |||
Manufacturer franchise rights | 0.5 | |||
Total purchase price | $ | 4.6 | ||
INVENTORIES_Tables
INVENTORIES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Inventory Disclosure [Abstract] | ' | |||||||
Schedule of Inventory | ' | |||||||
Inventories consisted of the following: | ||||||||
As of | ||||||||
31-Mar-14 | December 31, 2013 | |||||||
(In millions) | ||||||||
New vehicles | $ | 591.6 | $ | 605.2 | ||||
Used vehicles | 139.2 | 121.8 | ||||||
Parts and accessories | 41.5 | 40.7 | ||||||
Total inventories | $ | 772.3 | $ | 767.7 | ||||
ASSETS_AND_LIABILITIES_HELD_FO1
ASSETS AND LIABILITIES HELD FOR SALE (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Discontinued Operations and Disposal Groups [Abstract] | ' | |||||||
Disclosure of Long Lived Assets and Liabilities Held-for-sale | ' | |||||||
A summary of assets held for sale is as follows: | ||||||||
As of | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(In millions) | ||||||||
Assets: | ||||||||
Property and equipment, net | $ | 11.7 | $ | 9.1 | ||||
Total assets | $ | 11.7 | $ | 9.1 | ||||
LONGTERM_DEBT_Tables
LONG-TERM DEBT (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term Debt | ' | |||||||
Long-term debt consists of the following: | ||||||||
As of | ||||||||
March 31, 2014 | December 31, 2013 | |||||||
(In millions) | ||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 300 | $ | 300 | ||||
Mortgage notes payable bearing interest at fixed and variable rates | 164.9 | 166.5 | ||||||
Real estate credit agreement | 74.3 | 75 | ||||||
Capital lease obligations | 3.7 | 3.7 | ||||||
542.9 | 545.2 | |||||||
Add: unamortized premium on 8.375% Senior Subordinated Notes due 2020 | 8.9 | 9.2 | ||||||
Long-term debt, including current portion | 551.8 | 554.4 | ||||||
Less: current portion (a) | (11.4 | ) | (11.1 | ) | ||||
Long-term debt | $ | 540.4 | $ | 543.3 | ||||
______________________________ | ||||||||
(a) | Includes $1.1 million of the $8.9 million of unamortized premium as of March 31, 2014. |
FINANCIAL_INSTRUMENTS_AND_FAIR1
FINANCIAL INSTRUMENTS AND FAIR VALUE (Tables) | 3 Months Ended | ||||||||||||||
Mar. 31, 2014 | |||||||||||||||
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 is as follows: | |||||||||||||||
As of | |||||||||||||||
March 31, 2014 | December 31, 2013 | ||||||||||||||
(In millions) | |||||||||||||||
Carrying Value: | |||||||||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 308.9 | $ | 309.2 | |||||||||||
Total carrying value | $ | 308.9 | $ | 309.2 | |||||||||||
Fair Value: | |||||||||||||||
8.375% Senior Subordinated Notes due 2020 | $ | 336 | $ | 336.8 | |||||||||||
Total fair value | $ | 336 | $ | 336.8 | |||||||||||
Schedule of Derivative Instruments Effect on Accumulated Other Comprehensive Income | ' | ||||||||||||||
Information about the effect of derivative instruments on the accompanying Condensed Consolidated Statements of Income, including the impact on Accumulated Other Comprehensive Income ("AOCI") (in millions): | |||||||||||||||
For the Three Months Ended March 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) | |||||||||||||||
2014 | Interest rate swaps | ($1.30) | Swap interest expense | ($0.50) | $— | $— | N/A | ||||||||
2013 | Interest rate swaps | $— | Swap interest expense | ($0.10) | ($1.10) | $— | N/A | ||||||||
Schedule of Amounts Reclassified out of AOCI | ' | ||||||||||||||
Information about amounts reclassified out of AOCI | (In millions) | ||||||||||||||
Accumulated other comprehensive income — December 31, 2013 | $ | 0.2 | |||||||||||||
Change in fair value of cash flow swaps | (0.8 | ) | |||||||||||||
Amortization of terminated cash flow swaps | — | ||||||||||||||
Total amount reclassified to swap interest expense | (0.8 | ) | |||||||||||||
Income tax impact associated with cash flow swaps | 0.3 | ||||||||||||||
Accumulated other comprehensive loss — March 31, 2014 | $ | (0.3 | ) | ||||||||||||
Schedule of Instruments Entered Into For Hedging Purposes | ' | ||||||||||||||
Market Risk Disclosures as of March 31, 2014: | |||||||||||||||
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* | $74.30 | 1 month LIBOR | Sep-23 | $ | (0.2 | ) | |||||||||
Interest Rate Swap* | $18.10 | 1 month LIBOR | Oct-15 | $ | (0.3 | ) | |||||||||
____________________________ | |||||||||||||||
* The total fair value of our swaps is a $0.5 million net liability, of which $1.9 million is included in Accounts Payable and Accrued Liabilities, $0.1 million is included in Other Long-Term Liabilities and $1.5 million is included in Other Long-Term Assets on the accompanying Condensed Consolidated Balance Sheet. | |||||||||||||||
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* | $75.00 | 1 month LIBOR | Sep-23 | $ | 0.7 | ||||||||||
Interest Rate Swap* | $18.40 | 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 Condensed Consolidated Balance Sheet. |
DISCONTINUED_OPERATIONS_AND_DI1
DISCONTINUED OPERATIONS AND DIVESTITURES (Tables) | 3 Months Ended | |||||||
Mar. 31, 2014 | ||||||||
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 March 31, 2014, and includes the results of businesses sold prior to March 31, 2014: | ||||||||
For the Three Months Ended March 31, | ||||||||
2014 | 2013 | |||||||
(In millions, except franchise data) | ||||||||
Franchises: | ||||||||
Mid-line import | — | 1 | ||||||
Total | — | 1 | ||||||
Revenues | $ | — | $ | 3.8 | ||||
Cost of sales | — | 3.4 | ||||||
Gross profit | — | 0.4 | ||||||
Operating expenses | 0.3 | 0.9 | ||||||
Loss from operations | (0.3 | ) | (0.5 | ) | ||||
Other expense, net | — | (0.1 | ) | |||||
Gain on disposition | — | 14.6 | ||||||
(Loss) income before income taxes | (0.3 | ) | 14 | |||||
Income tax benefit (expense) | 0.2 | (5.4 | ) | |||||
Discontinued operations, net of tax | $ | (0.1 | ) | $ | 8.6 | |||
DESCRIPTION_OF_BUSINESS_Detail
DESCRIPTION OF BUSINESS (Details) | Mar. 31, 2014 |
states | |
VehicleBrands | |
CollisionRepairCenters | |
Franchises | |
DealershipLocations | |
MetropolitanMarkets | |
Business Organization [Line Items] | ' |
Number of franchises (in franchises) | 101 |
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 | 85.00% |
Domestic Brands [Member] | ' |
Business Organization [Line Items] | ' |
Weighted brand mix | 15.00% |
SUMMARY_OF_SIGNIFICANT_ACCOUNT2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) | 3 Months Ended |
Mar. 31, 2014 | |
Accounting Policies [Line Items] | ' |
General collection period for contracts-in-transit (in days) | '14 days |
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 |
ACQUISITIONS_Narrative_Details
ACQUISITIONS (Narrative) (Details) (Three Franchises (Three Dealership Locations) [Member], USD $) | 1 Months Ended | 3 Months Ended |
In Millions, unless otherwise specified | Jan. 31, 2014 | Mar. 31, 2014 |
Franchises | ||
Three Franchises (Three Dealership Locations) [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Number of franchises acquired (in franchises) | 1 | ' |
Aggregate purchase price | $4.60 | ' |
Cash paid for acquisition | 4.1 | ' |
Floor plan borrowings for puchase of related inventory | 0.5 | ' |
Goodwill and manufacturer franchise rights | ' | $4.10 |
Goodwill and manufacturer franchise rights, period for federal and state tax deductions | ' | '15 years |
ACQUISITIONS_Schedule_of_Busin
ACQUISITIONS (Schedule of Business Acquisitions) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Business Acquisition [Line Items] | ' | ' |
Goodwill | $58.10 | $54.50 |
Three Franchises (Three Dealership Locations) [Member] | ' | ' |
Business Acquisition [Line Items] | ' | ' |
Inventory | 0.5 | ' |
Goodwill | 3.6 | ' |
Manufacturer franchise rights | 0.5 | ' |
Total purchase price | $4.60 | ' |
INVENTORIES_Details
INVENTORIES (Details) (USD $) | 3 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Dec. 31, 2013 |
Components of Inventory [Line Items] | ' | ' | ' |
Inventories | $772.30 | ' | $767.70 |
Lower of cost or market inventory reserves | 6.1 | ' | 6 |
New Vehicles [Member] | ' | ' | ' |
Components of Inventory [Line Items] | ' | ' | ' |
Inventories | 591.6 | ' | 605.2 |
Reduction of new vehicle inventory cost by automobile manufacturer incentives | 6.8 | ' | 7.4 |
Reduction to new vehicle cost of sales by automobile manufacturer incentives | 7 | 5.9 | ' |
Used Vehicles [Member] | ' | ' | ' |
Components of Inventory [Line Items] | ' | ' | ' |
Inventories | 139.2 | ' | 121.8 |
Parts and Accessories [Member] | ' | ' | ' |
Components of Inventory [Line Items] | ' | ' | ' |
Inventories | $41.50 | ' | $40.70 |
ASSETS_AND_LIABILITIES_HELD_FO2
ASSETS AND LIABILITIES HELD FOR SALE (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Discontinued Operations and Disposal Groups [Abstract] | ' | ' |
Real estate held-for-sale | $11.70 | $9.10 |
Assets: | ' | ' |
Property and equipment, net | 11.7 | 9.1 |
Total assets | $11.70 | $9.10 |
LONGTERM_DEBT_Schedule_of_Long
LONG-TERM DEBT (Schedule of Long-Term Debt) (Details) (USD $) | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | |||||
Debt Instrument [Line Items] | ' | ' | ' | ||
Capital lease obligations | $3.70 | $3.70 | ' | ||
Long term debt and capital lease obligations, current and noncurrent, before unamortized premium (discount) | 542.9 | 545.2 | ' | ||
Add: unamortized premium on 8.375% Senior Subordinated Notes due 2020 | 8.9 | 9.2 | ' | ||
Long-term debt, including current portion | 551.8 | 554.4 | ' | ||
Less: current portion | -11.4 | [1] | -11.1 | [1] | ' |
Long-term debt | 540.4 | 543.3 | ' | ||
Mortgages [Member] | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Long-term debt, gross | 164.9 | 166.5 | ' | ||
Real Estate Credit Agreement [Member] | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Long-term debt, gross | 74.3 | 75 | ' | ||
8.375% Senior Subordinated Notes due 2020 | Current Maturities [Member] | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Add: unamortized premium on 8.375% Senior Subordinated Notes due 2020 | 1.1 | ' | ' | ||
8.375% Senior Subordinated Notes due 2020 | Senior Subordinated Notes [Member] | ' | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ' | ||
Long-term debt, gross | $300 | $300 | ' | ||
Stated interest rate of debt instrument | 8.38% | 8.38% | 8.38% | ||
[1] | $8.9 million of unamortized premium as of MarchB 31, 2014. |
FINANCIAL_INSTRUMENTS_AND_FAIR2
FINANCIAL INSTRUMENTS AND FAIR VALUE (Narrative) (Details) (USD $) | Mar. 31, 2014 | Nov. 30, 2013 | Mar. 31, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | Interest Rate Swap [Member] | Interest Rate Swap [Member] | Interest Rate Swap 1 [Member] | Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] | Senior Subordinated Notes [Member] |
8.375% Senior Subordinated Notes due 2020 | 8.375% Senior Subordinated Notes due 2020 | 8.375% Senior Subordinated Notes due 2020 | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' | ' | ' |
Stated interest rate of debt instrument | ' | ' | ' | 8.38% | 8.38% | 8.38% |
Notional principal amount of derivative | $74.30 | $75 | $18.10 | ' | ' | ' |
Notional principal amount of derivative, at maturity | 38.7 | ' | 16.1 | ' | ' | ' |
Interest rate swap, net loss amount expected to be reclassified in the next twelve months | ($1.90) | ' | ' | ' | ' | ' |
FINANCIAL_INSTRUMENTS_AND_FAIR3
FINANCIAL INSTRUMENTS AND FAIR VALUE (Summary of Carrying Values and Fair Values of Debt) (Details) (USD $) | Mar. 31, 2014 | 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 | $308.90 | $309.20 | ' |
Portion at Fair Value, Fair Value Disclosure [Member] | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Total fair value | 336 | 336.8 | ' |
Senior Subordinated Notes [Member] | 8.375% Senior Subordinated Notes due 2020 | ' | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' | ' |
Total carrying value | 308.9 | 309.2 | ' |
Total fair value | $336 | $336.80 | ' |
Stated interest rate of debt instrument | 8.38% | 8.38% | 8.38% |
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 $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Interest Rate Swap [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Results Recognized in AOCI (Effective Portion) | ($1.30) | $0 |
Interest Expense [Member] | Interest Rate Swap [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount Reclassified from AOCI to Earnings | -0.5 | -0.1 |
Ineffective Results Recognized in Earnings | 0 | 0 |
Interest Expense [Member] | Terminated Interest Rate Swaps [Member] | ' | ' |
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' |
Amount Reclassified from AOCI to Earnings | $0 | ($1.10) |
FINANCIAL_INSTRUMENTS_AND_FAIR5
FINANCIAL INSTRUMENTS AND FAIR VALUE (Schedule of Amounts Reclassified out of AOCI) (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Reclassification out of Accumulated Other Comprehensive Income [Roll Forward] | ' | ' |
Accumulated other comprehensive income, beginning of period | $0.20 | ' |
Income tax impact associated with cash flow swaps | 20 | 15.2 |
Accumulated other comprehensive loss, end of period | -0.3 | ' |
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] | ' | ' |
Accumulated other comprehensive income, beginning of period | 0.2 | ' |
Change in fair value of cash flow swaps | -0.8 | ' |
Amortization of terminated cash flow swaps | 0 | ' |
Total amount reclassified to swap interest expense | -0.8 | ' |
Income tax impact associated with cash flow swaps | 0.3 | ' |
Accumulated other comprehensive loss, end of period | ($0.30) | ' |
FINANCIAL_INSTRUMENTS_AND_FAIR6
FINANCIAL INSTRUMENTS AND FAIR VALUE (Schedule of Instruments Entered Into for Hedging Purposes) (Details) (One-Month LIBOR [Member], USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Mar. 31, 2014 | Dec. 31, 2013 | ||
Interest Rate Swap [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Fair value of interest rate swaps | ($0.50) | ($0.30) | ||
Interest Rate Swap [Member] | Accounts Payable and Accrued Liabilities [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Fair value of interest rate swaps | -1.9 | -1.9 | ||
Interest Rate Swap [Member] | Other Long-Term Liabilities [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Fair value of interest rate swaps | -0.1 | -0.1 | ||
Interest Rate Swap [Member] | Other Long-Term Assets [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Fair value of interest rate swaps | -1.5 | -2.3 | ||
Interest Rate Swap 1 [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Notional size | 74.3 | [1] | 75 | [2] |
Expiration | 1-Sep-23 | [1] | 1-Sep-23 | [2] |
Fair value of interest rate swaps | -0.2 | [1] | 0.7 | [2] |
Interest Rate Swap 2 [Member] | ' | ' | ||
Derivative Instruments, Gain (Loss) [Line Items] | ' | ' | ||
Notional size | 18.1 | [1] | 18.4 | [2] |
Expiration | 1-Oct-15 | [1] | 1-Oct-15 | [2] |
Fair value of interest rate swaps | ($0.30) | [1] | ($0.40) | [2] |
[1] | The total fair value of our swaps is a $0.5 million net liability, of which $1.9 million is included in Accounts Payable and Accrued Liabilities, $0.1 million is included in Other Long-Term Liabilities and $1.5 million is included in Other Long-Term Assets on the accompanying Condensed Consolidated Balance Sheet. | |||
[2] | 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 Condensed Consolidated Balance Sheet. |
DISCONTINUED_OPERATIONS_AND_DI2
DISCONTINUED OPERATIONS AND DIVESTITURES (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Franchises | Franchises | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Franchises, discontinued operations (in franchises) | 0 | 1 |
Revenues | $0 | $3.80 |
Cost of sales | 0 | 3.4 |
Gross profit | 0 | 0.4 |
Operating expenses | 0.3 | 0.9 |
Loss from operations | -0.3 | -0.5 |
Other expense, net | 0 | -0.1 |
Gain on sale of assets | 0 | 14.6 |
(Loss) income before income taxes | -0.3 | 14 |
Income tax expense (benefit) | 0.2 | -5.4 |
Discontinued operations, net of tax | ($0.10) | $8.60 |
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) | 0 | 1 |
SUPPLEMENTAL_CASH_FLOW_INFORMA1
SUPPLEMENTAL CASH FLOW INFORMATION (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Interest payments made including amounts capitalized | $6.50 | $10.60 |
Cash paid during the period related to floor plan interest | 3.3 | 2.9 |
Income tax payments, net of refunds received | ' | 0.8 |
Trade receivables sold | 2 | 4.2 |
Discount on trade receivables sold | ' | 0.1 |
Loaner vehicles transferred from other current assets to inventory | $16.60 | $16.70 |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Details) (Guarantee Obligations [Member], USD $) | Mar. 31, 2014 |
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 |