Document and Entity Information
| Document and Entity Information - shares | 9 Months Ended | |
| Sep. 30, 2017 | Oct. 27, 2017 | |
| Document and Entity Information | ||
| Entity Registrant Name | KAR Auction Services, Inc. | |
| Entity Central Index Key | 1,395,942 | |
| Document Type | 10-Q | |
| Document Period End Date | Sep. 30, 2017 | |
| Amendment Flag | false | |
| Current Fiscal Year End Date | --12-31 | |
| Entity Current Reporting Status | Yes | |
| Entity Filer Category | Large Accelerated Filer | |
| Entity Common Stock, Shares Outstanding | 135,264,903 | |
| Document Fiscal Year Focus | 2,017 | |
| Document Fiscal Period Focus | Q3 |
Consolidated Statements of Inco
| Consolidated Statements of Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
| Operating revenues | ||||
| ADESA Auction Services | $ 477.1 | $ 457.4 | $ 1,464.3 | $ 1,323 |
| IAA Salvage Services | 287.7 | 261 | 883.8 | 795.4 |
| AFC | 78.2 | 71.2 | 219.5 | 218 |
| Total operating revenues | 843 | 789.6 | 2,567.6 | 2,336.4 |
| Operating expenses | ||||
| Cost of services (exclusive of depreciation and amortization) | 479.2 | 459.5 | 1,462.1 | 1,339.1 |
| Selling, general and administrative | 155.7 | 146.3 | 467.7 | 434.3 |
| Depreciation and amortization | 66.2 | 60.5 | 195.2 | 175.9 |
| Total operating expenses | 701.1 | 666.3 | 2,125 | 1,949.3 |
| Operating profit | 141.9 | 123.3 | 442.6 | 387.1 |
| Interest expense | 41.5 | 36.3 | 121.9 | 100.8 |
| Other (income) expense, net | (0.1) | 0.8 | (1.7) | (0.8) |
| Loss on extinguishment of debt | 0 | 0 | 27.5 | 4 |
| Income before income taxes | 100.5 | 86.2 | 294.9 | 283.1 |
| Income taxes | 37.7 | 31.8 | 105.7 | 106.2 |
| Net Income | $ 62.8 | $ 54.4 | $ 189.2 | $ 176.9 |
| Net income per share | ||||
| Basic (in dollars per share) | $ 0.46 | $ 0.39 | $ 1.38 | $ 1.29 |
| Diluted (in dollars per share) | 0.46 | 0.39 | 1.37 | 1.27 |
| Dividends declared per common share (in dollars per share) | $ 0.32 | $ 0.29 | $ 0.96 | $ 0.87 |
Consolidated Statements of Comp
| Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
| Net Income | $ 62.8 | $ 54.4 | $ 189.2 | $ 176.9 |
| Other comprehensive income (loss) | ||||
| Foreign currency translation gain (loss) | 12.7 | (4.7) | 26.4 | (0.4) |
| Comprehensive income | $ 75.5 | $ 49.7 | $ 215.6 | $ 176.5 |
Consolidated Balance Sheets
| Consolidated Balance Sheets - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
| Current assets | ||
| Cash and cash equivalents | $ 432.1 | $ 201.8 |
| Restricted cash | 18.6 | 17.9 |
| Trade receivables, net of allowances of $10.5 and $13.0 | 761.9 | 682.9 |
| Finance receivables, net of allowances of $12.8 and $12.0 | 1,796.4 | 1,780.2 |
| Other current assets | 165.1 | 158.4 |
| Total current assets | 3,174.1 | 2,841.2 |
| Other assets | ||
| Goodwill | 2,096.8 | 2,057 |
| Customer relationships, net of accumulated amortization of $783.3 and $707.8 | 395.9 | 461 |
| Other intangible assets, net of accumulated amortization of $322.1 and $301.6 | 325.7 | 320.1 |
| Other assets | 42.6 | 35.8 |
| Total other assets | 2,861 | 2,873.9 |
| Property and equipment, net of accumulated depreciation of $728.9 and $655.6 | 870.5 | 842.5 |
| Total assets | 6,905.6 | 6,557.6 |
| Current liabilities | ||
| Accounts payable | 754.6 | 648.5 |
| Accrued employee benefits and compensation expenses | 94.4 | 100.7 |
| Accrued interest | 18.5 | 2.2 |
| Other accrued expenses | 155.3 | 149.4 |
| Income taxes payable | 5.4 | 5 |
| Dividends payable | 43.3 | 43.7 |
| Obligations collateralized by finance receivables | 1,259.3 | 1,280.3 |
| Current maturities of long-term debt | 16.8 | 105.2 |
| Total current liabilities | 2,347.6 | 2,335 |
| Non-current liabilities | ||
| Long-term debt | 2,671 | 2,365.1 |
| Deferred income tax liabilities | 296.2 | 291.7 |
| Other liabilities | 188.1 | 168.5 |
| Total non-current liabilities | 3,155.3 | 2,825.3 |
| Commitments and contingencies (Note 9) | ||
| Stockholders' equity | ||
| Preferred stock, $0.01 par value: Authorized shares: 100,000,000; Issued shares: none | 0 | 0 |
| Common stock, $0.01 par value: Authorized shares: 400,000,000; Issued and outstanding shares: September 30, 2017: 135,261,553, December 31, 2016: 136,639,217 | 1.4 | 1.4 |
| Additional paid-in capital | 1,292.9 | 1,371.1 |
| Retained earnings | 131.3 | 74.1 |
| Accumulated other comprehensive loss | (22.9) | (49.3) |
| Total stockholders' equity | 1,402.7 | 1,397.3 |
| Total liabilities and stockholders' equity | $ 6,905.6 | $ 6,557.6 |
Consolidated Balance Sheets (Pa
| Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
| Trade receivables, allowances (in dollars) | $ 10.5 | $ 13 |
| Finance receivables, allowances (in dollars) | 12.8 | 12 |
| Customer relationships, accumulated amortization (in dollars) | 783.3 | 707.8 |
| Other intangible assets, accumulated amortization (in dollars) | 322.1 | 301.6 |
| Property and equipment, accumulated depreciation (in dollars) | $ 728.9 | $ 655.6 |
| Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Preferred stock, Authorized shares | 100,000,000 | 100,000,000 |
| Preferred stock, Issued shares | 0 | 0 |
| Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
| Common stock, Authorized shares | 400,000,000 | 400,000,000 |
| Common stock, Issued shares | 135,261,553 | 136,639,217 |
| Common stock, outstanding shares | 135,261,553 | 136,639,217 |
Consolidated Statements of Stoc
| Consolidated Statements of Stockholders' Equity - 9 months ended Sep. 30, 2017 - USD ($) $ in Millions | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss |
| Balance at Dec. 31, 2016 | $ 1,397.3 | $ 1.4 | $ 1,371.1 | $ 74.1 | $ (49.3) |
| Balance (in shares) at Dec. 31, 2016 | 136,639,217 | 136,600,000 | |||
| Increase (Decrease) in Stockholders' Equity | |||||
| Net Income | $ 189.2 | 189.2 | |||
| Other comprehensive income | 26.4 | 26.4 | |||
| Issuance of common stock under stock plans | 9.8 | 9.8 | |||
| Issuance of common stock under stock plans (in shares) | 1,000,000 | ||||
| Surrender of RSUs for taxes | (5.7) | (5.7) | |||
| Surrender of RSUs for taxes (in shares) | (100,000) | ||||
| Repurchase and retirement of common stock | (100) | (100) | |||
| Repurchase and retirement of common stock (in shares) | (2,200,000) | ||||
| Stock-based compensation expense | 16.8 | 16.8 | |||
| Dividends earned under stock plans | 0 | 0.9 | (0.9) | ||
| Cash dividends declared to stockholders | (131.1) | (131.1) | |||
| Balance at Sep. 30, 2017 | $ 1,402.7 | $ 1.4 | $ 1,292.9 | $ 131.3 | $ (22.9) |
| Balance (in shares) at Sep. 30, 2017 | 135,261,553 | 135,300,000 |
Consolidated Statements of Sto7
| Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
| Cash dividends declared to stockholders (in dollars per share) | $ 0.32 | $ 0.29 | $ 0.96 | $ 0.87 |
Consolidated Statements of Cash
| Consolidated Statements of Cash Flows - USD ($) $ in Millions | 9 Months Ended | |
| Sep. 30, 2017 | Sep. 30, 2016 | |
| Operating activities | ||
| Net Income | $ 189.2 | $ 176.9 |
| Adjustments to reconcile net income to net cash provided by operating activities: | ||
| Depreciation and amortization | 195.2 | 175.9 |
| Provision for credit losses | 30.8 | 23.5 |
| Deferred income taxes | 7.9 | (11.8) |
| Amortization of debt issuance costs | 7.8 | 6.5 |
| Stock-based compensation | 16.8 | 14.2 |
| (Gain) loss on disposal of fixed assets | (0.5) | 0.1 |
| Loss on extinguishment of debt | 27.5 | 4 |
| Other non-cash, net | 7.4 | 6.4 |
| Changes in operating assets and liabilities, net of acquisitions: | ||
| Trade receivables and other assets | (91.7) | (178.5) |
| Accounts payable and accrued expenses | 97.5 | 73.7 |
| Net cash provided by operating activities | 487.9 | 290.9 |
| Investing activities | ||
| Net increase in finance receivables held for investment | (38.5) | (158.7) |
| Acquisition of businesses, net of cash acquired | (47) | (354.5) |
| Purchases of property, equipment and computer software | (110.1) | (118.5) |
| Advance to equity method investee | (5) | 0 |
| Proceeds from the sale of property and equipment | 0.3 | 0 |
| (Increase) decrease in restricted cash | (0.7) | 0.8 |
| Net cash used by investing activities | (201) | (630.9) |
| Financing activities | ||
| Net increase in book overdrafts | 31.7 | 29.6 |
| Net decrease in borrowings from lines of credit | (80.5) | (140) |
| Net (decrease) increase in obligations collateralized by finance receivables | (33) | 78.8 |
| Proceeds from long-term debt | 2,717 | 1,336.5 |
| Payments for debt issuance costs/amendments | (22.6) | (19.5) |
| Payments on long-term debt | (2,427.9) | (654.4) |
| Payments on capital leases | (21.7) | (18.8) |
| Payments of contingent consideration and deferred acquisition costs | (7) | (3.6) |
| Initial net investment for interest rate caps | (1.7) | 0 |
| Issuance of common stock under stock plans | 9.8 | 14.8 |
| Tax withholding payments for vested RSUs | (5.7) | (1) |
| Repurchase and retirement of common stock | (100) | 0 |
| Dividends paid to stockholders | (131.5) | (117) |
| Net cash (used by) provided by financing activities | (73.1) | 505.4 |
| Effect of exchange rate changes on cash | 16.5 | 2.7 |
| Net increase in cash and cash equivalents | 230.3 | 168.1 |
| Cash and cash equivalents at beginning of period | 201.8 | 155 |
| Cash and cash equivalents at end of period | 432.1 | 323.1 |
| Cash paid for interest | 95.6 | 91 |
| Cash paid for taxes, net of refunds | $ 91.8 | $ 99.9 |
Basis of Presentation and Natur
| Basis of Presentation and Nature of Operations | 9 Months Ended |
| Sep. 30, 2017 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation and Nature of Operations | Basis of Presentation and Nature of Operations Defined Terms Unless otherwise indicated or unless the context otherwise requires, the following terms used herein shall have the following meanings: • "we," "us," "our" and "the Company" refer, collectively, to KAR Auction Services, Inc. and all of its subsidiaries; • "ADESA" or "ADESA Auctions" refer, collectively, to ADESA, Inc., a wholly-owned subsidiary of KAR Auction Services, and ADESA, Inc.'s subsidiaries, including Openlane, Inc. (together with Openlane, Inc.'s subsidiaries, "Openlane") and ADESA Remarketing Limited (formerly known as GRS Remarketing Limited ("GRS" or "ADESA Remarketing Limited")); • "AFC" refers, collectively, to Automotive Finance Corporation, a wholly-owned subsidiary of ADESA, and Automotive Finance Corporation's subsidiaries and other related entities, including PWI Holdings, Inc.; • "Credit Agreement" refers to the Amended and Restated Credit Agreement, dated March 11, 2014, as amended on March 9, 2016 and May 31, 2017, among KAR Auction Services, as the borrower, the several banks and other financial institutions or entities from time to time parties thereto and the administrative agent; • "Credit Facility" refers to the seven -year senior secured term loan B-2 facility ("Term Loan B-2"), the seven -year senior secured term loan B-3 facility ("Term Loan B-3"), the senior secured term loan B-4 facility due March 11, 2021 ("Term Loan B-4"), the senior secured term loan B-5 facility due March 9, 2023 ("Term Loan B-5") and the $350 million , senior secured revolving credit facility due March 9, 2021 (the "revolving credit facility"), the terms of which are set forth in the Credit Agreement. Term Loan B-2 and Term Loan B-3 were extinguished in May 2017 with the proceeds received from Term Loan B-4, Term Loan B-5 and the senior notes; • "Senior notes" refers to the 5.125% senior notes due 2025 ( $950 million aggregate principal outstanding at September 30, 2017); • "IAA" refers, collectively, to Insurance Auto Auctions, Inc., a wholly-owned subsidiary of KAR Auction Services, and Insurance Auto Auctions, Inc.'s subsidiaries and other related entities, including HBC Vehicle Services Limited ("HBC"); and • "KAR Auction Services" refers to KAR Auction Services, Inc. and not to its subsidiaries. Business and Nature of Operations As of September 30, 2017 , we have a North American network of 75 ADESA whole car auction sites and 174 IAA salvage vehicle auction sites; in addition, we offer online auctions for both whole car and salvage vehicles. ADESA also includes ADESA Remarketing Limited, an online whole car vehicle remarketing business in the United Kingdom. IAA also includes HBC Vehicle Services Limited, which operates from 11 locations in the United Kingdom. Our auctions facilitate the sale of used and salvage vehicles through physical, online or hybrid auctions, which permit Internet buyers to participate in physical auctions. ADESA and IAA are leading, national providers of wholesale and salvage vehicle auctions and related vehicle remarketing services for the automotive industry in North America. ADESA's online service offerings include customized private label solutions powered with software developed by its wholly-owned subsidiary, Openlane, that allow our institutional consignors (automobile manufacturers, captive finance companies and other institutions) to offer vehicles via the Internet prior to arrival at the physical auction. Remarketing services include a variety of activities designed to transfer used and salvage vehicles between sellers and buyers throughout the vehicle life cycle. ADESA and IAA facilitate the exchange of these vehicles through an auction marketplace, which aligns sellers and buyers. As an agent for customers, the Company generally does not take title to or ownership of vehicles sold at the auctions. Generally, fees are earned from the seller and buyer on each successful auction transaction in addition to fees earned for ancillary services. ADESA has the second largest used vehicle auction network in North America, based upon the number of used vehicles sold through auctions annually, and also provides services such as inbound and outbound transportation logistics, reconditioning, vehicle inspection and certification, titling, administrative and collateral recovery services. ADESA is able to serve the diverse and multi-faceted needs of its customers through the wide range of services offered. IAA is one of the leading providers of salvage vehicle auctions and related services. The salvage auctions facilitate the remarketing of damaged vehicles that are designated as total losses by insurance companies, recovered stolen vehicles for which an insurance settlement with the vehicle owner has already been made, purchased vehicles and older model vehicles donated to charity or sold by dealers in salvage auctions. The salvage auction business specializes in providing services such as inbound transportation logistics, inspections, evaluations, salvage recovery services, titling and settlement administrative services. AFC is a leading provider of floorplan financing to independent used vehicle dealers and this financing is provided through 128 locations throughout the United States and Canada as of September 30, 2017 . Floorplan financing supports independent used vehicle dealers in North America who purchase vehicles at ADESA, IAA, TradeRev (partially owned by ADESA as of September 30, 2017), other used vehicle and salvage auctions and non-auction purchases. In addition to floorplan financing, AFC also provides independent used vehicle dealers with other related services and products, such as vehicle service contracts. Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. Operating results for interim periods are not necessarily indicative of results that may be expected for the year as a whole. In the opinion of management, the consolidated financial statements reflect all adjustments, generally consisting of normal recurring accruals, necessary for a fair statement of our results of operations, cash flows and financial position for the periods presented. These consolidated financial statements and condensed notes to consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on February 24, 2017. The 2016 year-end consolidated balance sheet data included in this Form 10-Q was derived from the audited financial statements referenced above and does not include all disclosures required by U.S. GAAP for annual financial statements. Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from these estimates. Accounting for Stock-Based Compensation The Company accounts for stock-based compensation under ASC 718, Compensation-Stock Compensation . We recognize all stock-based compensation as expense in the financial statements and that cost is measured as the fair value of the award at the grant date for equity-classified awards. We adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , in the first quarter of 2017. As a result of the adoption, the Company elected to recognize the impact of forfeitures as they occur. In addition, the Company now recognizes excess tax benefits and tax deficiencies related to employee stock-based compensation within income tax expense. As a result, on a prospective basis, we recognized $1.3 million and $6.3 million of excess tax benefits from stock-based compensation as a discrete item in our income tax expense for the three and nine months ended September 30, 2017, respectively. Historically, these amounts were recorded as additional paid-in capital. We have also retrospectively applied ASU 2016-09 to our consolidated statements of cash flows for the nine months ended September 30, 2016, which resulted in a reclassification of excess tax benefits from stock-based compensation of $7.1 million from cash flows provided by financing activities to cash flows provided by operating activities. New Accounting Standards In May 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance is expected to reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. Changes that do not impact the fair value, vesting conditions or classification of an award will not require modification accounting. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of ASU 2017-09 will have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the test for goodwill impairment by eliminating Step 2 (implied fair value measurement). Instead goodwill impairment would be measured as the amount by which a reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of ASU 2017-04 will have a material impact on the consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which addresses diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of ASU 2016-18 will have a material impact on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-15 will have on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The update changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. The new guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted beginning in annual periods beginning after December 15, 2018, including interim periods within those fiscal years. We do not expect the adoption of ASU 2016-13 will have a material impact on the consolidated financial statements based on the short-term nature of AFC's loans. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which replaces existing lease guidance. The ASU is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet, with an exception for leases that meet the definition of a short-term lease. The new guidance will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted and the ASU is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on the consolidated financial statements and anticipates that the new guidance will significantly impact its consolidated financial statements, as the Company has a significant number of leases. Our current minimum commitments under non-cancelable operating leases are disclosed in the "Contractual Obligations" section of "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2016 and in Note 13 to the Consolidated Financial Statements of the same report. In addition, the recognition of these leases on our consolidated balance sheet would increase our net debt calculation which is included in the determination of our Consolidated Senior Secured Leverage Ratio. In this event, our Credit Agreement specifies that the covenant shall continue to be calculated as if the accounting standard had not occurred and that we could enter into negotiations to amend such provisions in the Credit Agreement so as to equitably reflect such changes with the desired result that the criteria for evaluating our financial condition would be the same after the change as if such change had not been made. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which superseded the revenue recognition requirements in ASC 605, Revenue Recognition . The new guidance provides clarification on the recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosures to help financial statement users better understand the nature, amount, timing and uncertainty of revenue that is recognized. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which defers the effective date of ASU 2014-09 by one year. In accordance with the agreed upon delay, the new guidance is effective for the first annual reporting period and interim periods beginning after December 15, 2017, and will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. The Company expects to use retrospective application with the cumulative effect as its transition method. The Company is still in the process of evaluating the impact the adoption of ASU 2014-09 will have on the consolidated financial statements and is assessing its contracts with customers. Currently, we do not expect the adoption of ASU 2014-09 will have a material impact on the consolidated financial statements. We anticipate we will expand our consolidated financial statement disclosures in order to comply with the ASU. |
Acquisitions
| Acquisitions | 9 Months Ended |
| Sep. 30, 2017 | |
| Business Combinations [Abstract] | |
| Acquisitions | Acquisitions In April 2017, KAR purchased all of the stock of CarCo Technologies, Inc. (“DRIVIN”). DRIVIN aggregates automotive retail, pricing, registration and other market and economic data from a variety of public and proprietary sources. The insights generated from that data are deployed through predictive pricing, inventory management and vehicle matching tools that help customers buy, sell and source vehicles. In May 2017, the Company acquired Dependable Auto Shippers ("DAS"). DAS provides vehicle transportation services for corporate and personal vehicle transportation needs. The purchased assets included accounts receivable, software, and inventory. Financial results for each acquisition have been included in our consolidated financial statements from the date of acquisition. The aggregate purchase price for the businesses acquired in the first nine months of 2017, net of cash acquired, was approximately $47.0 million . The purchase price for the acquired businesses was allocated to acquired assets and liabilities based upon fair values, including $6.1 million to intangible assets, representing the fair value of acquired software which is being amortized over its expected useful life. The purchase accounting associated with the DRIVIN acquisition is preliminary, subject to determination of tax attributes. The Company does not expect adjustments to the purchase accounting will be material. The acquisitions resulted in aggregate goodwill of $35.5 million . The goodwill is recorded in the ADESA Auctions reportable segment. The financial impact of these acquisitions, including pro forma financial results, was immaterial to the Company’s consolidated results of operations for the nine months ended September 30, 2017. |
Stock and Stock-Based Compensat
| Stock and Stock-Based Compensation Plans | 9 Months Ended |
| Sep. 30, 2017 | |
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
| Stock and Stock-Based Compensation Plans | Stock and Stock-Based Compensation Plans The KAR Auction Services, Inc. 2009 Omnibus Stock and Incentive Plan ("Omnibus Plan") is intended to provide equity or cash-based awards to our employees. Our stock-based compensation expense includes expense associated with KAR Auction Services, Inc. performance-based restricted stock units ("PRSUs"), service-based restricted stock units ("RSUs") and service options. We have classified the KAR Auction Services, Inc. PRSUs, RSUs and service options as equity awards. The following table summarizes our stock-based compensation expense by type of award (in millions) : Three Months Ended Nine Months Ended 2017 2016 2017 2016 PRSUs $ 3.1 $ 2.5 $ 8.7 $ 8.2 RSUs 2.4 1.4 6.9 4.4 Service options 0.3 0.5 1.2 1.6 Total stock-based compensation expense $ 5.8 $ 4.4 $ 16.8 $ 14.2 PRSUs and RSUs In the first nine months of 2017, we granted a target amount of approximately 0.2 million PRSUs to certain executive officers and management of the Company. The PRSUs vest if and to the extent that the Company's three -year operating adjusted earnings per share attains certain specified goals. In addition, approximately 0.3 million RSUs were granted to certain executive officers and management of the Company. The RSUs are contingent upon continued employment and generally vest in three equal annual installments. The weighted average grant date fair value of the PRSUs and the RSUs was $44.43 per share and $44.02 per share, respectively, which was determined using the closing price of the Company's common stock on the dates of grant. Share Repurchase Program In October 2016, the board of directors authorized a repurchase of up to $500 million of the Company’s outstanding common stock, par value $0.01 per share, through October 26, 2019 . Repurchases may be made in the open market or through privately negotiated transactions, in accordance with applicable securities laws and regulations, including pursuant to repurchase plans designed to comply with Rule 10b5-1 of the Securities Exchange Act of 1934, as amended. The timing and amount of any repurchases is subject to market and other conditions. During the three months ended September 30, 2017, we repurchased and retired a total of 2,249,489 shares of common stock in the open market at a weighted average price of $44.45 per share under the October 2016 authorization. In 2016, we repurchased and retired a total of 1,931,200 shares of common stock in the open market at a weighted average price of $41.61 per share under the October 2016 authorization. |
Net Income Per Share
| Net Income Per Share | 9 Months Ended |
| Sep. 30, 2017 | |
| Earnings Per Share, Basic and Diluted [Abstract] | |
| Net Income Per Share | Net Income Per Share The following table sets forth the computation of net income per share (in millions except per share amounts) : Three Months Ended September 30, Nine Months Ended 2017 2016 2017 2016 Net income $ 62.8 $ 54.4 $ 189.2 $ 176.9 Weighted average common shares outstanding 136.4 138.0 136.8 137.6 Effect of dilutive stock options and restricted stock awards 1.3 1.7 1.5 1.8 Weighted average common shares outstanding and potential common shares 137.7 139.7 138.3 139.4 Net income per share Basic $ 0.46 $ 0.39 $ 1.38 $ 1.29 Diluted $ 0.46 $ 0.39 $ 1.37 $ 1.27 Basic net income per share was calculated by dividing net income by the weighted average number of outstanding common shares for the period. Diluted net income per share was calculated consistent with basic net income per share including the effect of dilutive unissued common shares related to our stock-based employee compensation program. The effect of stock options and restricted stock on net income per share-diluted is determined through the application of the treasury stock method, whereby net proceeds received by the Company based on assumed exercises are hypothetically used to repurchase our common stock at the average market price during the period. Stock options that would have an anti-dilutive effect on net income per diluted share and PRSUs subject to performance conditions which have not yet been satisfied are excluded from the calculations. No options were excluded from the calculation of diluted net income per share for the three or nine months ended September 30, 2017 and 2016 . In addition, approximately 0.5 million PRSUs were excluded from the calculation of diluted net income per share for the three months ended September 30, 2017 and 2016 , and approximately 0.5 million PRSUs were excluded from the calculation of diluted net income per share for the nine months ended September 30, 2017 and 2016 . Total options outstanding at September 30, 2017 and 2016 were 2.0 million and 2.9 million , respectively. |
Equity Method Investment
| Equity Method Investment | 9 Months Ended |
| Sep. 30, 2017 | |
| Equity Method Investments [Abstract] | |
| Equity Method Investment | Equity Method Investment At September 30, 2017, ADESA owned a 50% interest in Nth Gen Software Inc. ("TradeRev") and its online vehicle remarketing system. TradeRev is an online automotive remarketing system where dealers can launch and participate in real-time vehicle auctions at any time from their mobile devices or desktop. In addition, ADESA also entered into a joint marketing agreement with TradeRev to assist in expanding its footprint in the dealer-to-dealer online space in the U.S. and Canadian markets. In the first quarter of 2017, TradeRev signed a promissory note with ADESA. The promissory note created a line of credit for term loans up to $15 million , with a minimum of $5 million to be drawn at a time. At September 30, 2017, there was $5 million outstanding on the promissory note and the initial maturity date is January 5, 2020. This amount is recorded in “Other assets” on the consolidated balance sheet. At September 30, 2017, the Company accounted for TradeRev as an equity method investment because we had the ability to exercise significant influence over operating and financial policies but did not have a controlling financial interest. At September 30, 2017, the carrying amount of the investment was $18.5 million . The Company’s share in the net losses of TradeRev for the three months ended September 30, 2017 and 2016 was $1.6 million and $1.1 million , respectively, and the Company’s share in the net losses of TradeRev for the nine months ended September 30, 2017 and 2016 was $4.3 million and $2.7 million , respectively. This amount was recorded to “Other income, net” in the consolidated statements of income. Subsequent Event In October 2017, we acquired the remaining interest in TradeRev for $50 million in cash, $15 million over the next four years contingent on certain terms and $60 million over the next four years contingent on TradeRev performance. TradeRev brings mobile and digital technology to KAR’s portfolio of whole car and salvage auctions, floorplan financing solutions, and other ancillary and related services. KAR plans to further integrate those capabilities into TradeRev to expand its digital business and strengthen its share in the dealer-to-dealer market. The purchase accounting related to this acquisition is incomplete. Financial results for TradeRev will be included in our consolidated financial statements beginning in the fourth quarter of 2017. |
Finance Receivables and Obligat
| Finance Receivables and Obligations Collateralized by Finance Receivables | 9 Months Ended |
| Sep. 30, 2017 | |
| Notes, Loans and Financing Receivable, Net, Current [Abstract] | |
| Finance Receivables and Obligations Collateralized by Finance Receivables | Finance Receivables and Obligations Collateralized by Finance Receivables AFC sells the majority of its U.S. dollar denominated finance receivables on a revolving basis and without recourse to a wholly-owned, bankruptcy remote, consolidated, special purpose subsidiary ("AFC Funding Corporation"), established for the purpose of purchasing AFC's finance receivables. A securitization agreement allows for the revolving sale by AFC Funding Corporation to a group of bank purchasers of undivided interests in certain finance receivables subject to committed liquidity. The agreement expires on January 31, 2020. AFC Funding Corporation had committed liquidity of $1.50 billion for U.S. finance receivables at September 30, 2017 . We also have an agreement for the securitization of Automotive Finance Canada Inc.'s ("AFCI") receivables which expires on January 31, 2020. AFCI's committed facility is provided through a third party conduit (separate from the U.S. facility) and was C$125 million at September 30, 2017 . The receivables sold pursuant to both the U.S. and Canadian securitization agreements are accounted for as secured borrowings. The following tables present quantitative information about delinquencies, credit losses less recoveries ("net credit losses") and components of securitized financial assets and other related assets managed. For purposes of this illustration, delinquent receivables are defined as receivables 31 days or more past due. September 30, 2017 Net Credit Losses Three Months Ended September 30, 2017 Net Credit Losses Nine Months Ended September 30, 2017 Principal Amount of: (in millions) Receivables Receivables Delinquent Floorplan receivables $ 1,797.9 $ 8.0 $ 4.7 $ 26.8 Other loans 11.3 — — — Total receivables managed $ 1,809.2 $ 8.0 $ 4.7 $ 26.8 December 31, 2016 Net Credit Losses Three Months Ended September 30, 2016 Net Credit Losses Nine Months Ended September 30, 2016 Principal Amount of: (in millions) Receivables Receivables Delinquent Floorplan receivables $ 1,781.1 $ 12.0 $ 7.7 $ 18.3 Other loans 11.1 — — — Total receivables managed $ 1,792.2 $ 12.0 $ 7.7 $ 18.3 AFC's allowance for losses was $12.8 million and $12.0 million at September 30, 2017 and December 31, 2016 , respectively. As of September 30, 2017 and December 31, 2016 , $1,788.2 million and $1,774.8 million , respectively, of finance receivables and a cash reserve of 1 percent of the obligations collateralized by finance receivables served as security for the obligations collateralized by finance receivables. Obligations collateralized by finance receivables consisted of the following: September 30, December 31, Obligations collateralized by finance receivables, gross $ 1,274.2 $ 1,300.0 Unamortized securitization issuance costs (14.9 ) (19.7 ) Obligations collateralized by finance receivables $ 1,259.3 $ 1,280.3 Proceeds from the revolving sale of receivables to the bank facilities are used to fund new loans to customers. AFC, AFC Funding Corporation and AFCI must maintain certain financial covenants including, among others, limits on the amount of debt AFC and AFCI can incur, minimum levels of tangible net worth, and other covenants tied to the performance of the finance receivables portfolio. The securitization agreements also incorporate the financial covenants of our Credit Facility. At September 30, 2017 , we were in compliance with the covenants in the securitization agreements. |
Long-Term Debt
| Long-Term Debt | 9 Months Ended |
| Sep. 30, 2017 | |
| Long-term Debt, Unclassified [Abstract] | |
| Long-Term Debt | Long-Term Debt Long-term debt consisted of the following (in millions) : Interest Rate * Maturity September 30, 2017 December 31, 2016 Term Loan B-2 Adjusted LIBOR + 3.1875% March 11, 2021 $ — $ 1,082.7 Term Loan B-3 Adjusted LIBOR + 3.50% March 9, 2023 — 1,339.9 Term Loan B-4 Adjusted LIBOR + 2.25% March 11, 2021 714.9 — Term Loan B-5 Adjusted LIBOR + 2.50% March 9, 2023 1,046.8 — Revolving credit facility Adjusted LIBOR + 2.0% March 9, 2021 — 80.5 Senior notes 5.125% June 1, 2025 950.0 — Canadian line of credit CAD Prime + 0.50% Repayable upon demand — — Total debt 2,711.7 2,503.1 Unamortized debt issuance costs/discounts (23.9 ) (32.8 ) Current portion of long-term debt (16.8 ) (105.2 ) Long-term debt $ 2,671.0 $ 2,365.1 * The interest rates presented in the table above represent the rates in place at September 30, 2017 . On May 31, 2017, the Company used proceeds from the issuance of $950 million senior notes and proceeds from the issuance of $1,767 million in the aggregate of Term Loan B-4 and Term Loan B-5 to repay Term Loan B-2 and Term Loan B-3 in full and to repay the outstanding balance on the revolving credit facility. Credit Facility On May 31, 2017, we entered into an Incremental Commitment Agreement and Second Amendment (the "Second Amendment") to the Credit Agreement. The Second Amendment provided for, among other things, (i) the refinancing and repricing of the existing tranche B-2 term loans ("Term Loan B-2") remaining after the repayment with new tranche B-4 term loans in an aggregate principal amount of $717 million ("Term Loan B-4"), (ii) the refinancing and repricing of existing tranche B-3 term loans ("Term Loan B-3") remaining after the repayment with new tranche B-5 term loans in an aggregate principal amount of $1.05 billion ("Term Loan B-5") and (iii) a $350 million senior secured revolving credit facility (the "revolving credit facility"). A portion of the proceeds received from the issuance of the senior notes was used to repay a portion of Term Loan B-2 and Term Loan B-3, as well as the outstanding balance on the revolving credit facility. No early termination penalties were incurred by the Company; however, we incurred a non-cash loss on the extinguishment of debt of $27.5 million in the second quarter of 2017. The loss was a result of the write-off of unamortized debt issue costs and debt discounts associated with Term Loan B-2 and Term Loan B-3. We capitalized approximately $7.8 million of debt issuance costs in connection with the Second Amendment. The Credit Facility is available for letters of credit, working capital, permitted acquisitions and general corporate purposes. The Credit Agreement provides that with respect to the revolving credit facility, up to $75 million is available for letters of credit and up to $90 million is available for swing line loans. Both Term Loan B-4 and Term Loan B-5 are payable in quarterly installments equal to 0.25% of their respective original aggregate principal amounts. Such payments commenced on September 30, 2017, with the balances payable at each respective maturity date. The Credit Facility is subject to mandatory prepayments and reduction in an amount equal to the net proceeds of certain debt offerings, certain asset sales and certain insurance recovery events. In addition, in accordance with the terms of the Credit Agreement, 50% of the net cash proceeds from the sale-leaseback of certain technology and capital equipment were used to prepay $2.2 million and $3.2 million of Term Loan B-4 and Term Loan B-5, respectively, for the nine months ended September 30, 2017. Each such prepayment is credited to prepay, on a pro rata basis, in order of maturity the unpaid amounts due on the first eight scheduled quarterly installments of Term Loan B-4 and Term Loan B-5 and thereafter to the remaining scheduled quarterly installments of each term loan on a pro rata basis. The obligations of the Company under the Credit Facility are guaranteed by certain of our domestic subsidiaries (the "Subsidiary Guarantors") and are secured by substantially all of the assets of the Company and the Subsidiary Guarantors, including but not limited to: (a) pledges of and first priority perfected security interests in 100% of the equity interests of certain of the Company's and the Subsidiary Guarantors' domestic subsidiaries and 65% of the equity interests of certain of the Company's and the Subsidiary Guarantors' first tier foreign subsidiaries and (b) perfected first priority security interests in substantially all other tangible and intangible assets of the Company and each Subsidiary Guarantor, subject to certain exceptions. The Credit Agreement contains affirmative and negative covenants that we believe are usual and customary for a senior secured credit agreement. The negative covenants include, among other things, limitations on asset sales, mergers and acquisitions, indebtedness, liens, dividends, investments and transactions with our affiliates. The Credit Agreement also requires us to maintain a maximum leverage ratio, provided there are revolving loans outstanding. We were in compliance with the covenants in the Credit Agreement at September 30, 2017 . As set forth in the Credit Agreement, Term Loan B-4 bears interest at Adjusted LIBOR (as defined in the Credit Agreement) plus 2.25% , Term Loan B-5 at Adjusted LIBOR plus 2.50% and revolving loan borrowings at Adjusted LIBOR plus 2.0% . However, for specified types of borrowings, the Company may elect to make Term Loan B-4 borrowings at a Base Rate (as defined in the Credit Agreement) plus 1.25% , Term Loan B-5 at a Base Rate plus 1.50% and revolving loan borrowings at a Base Rate plus 1.0% . The rates on Term Loan B-4 and Term Loan B-5 were 3.63% and 3.88% at September 30, 2017 , respectively. In addition, if the Company's Consolidated Senior Secured Leverage Ratio (as defined in the Credit Agreement), which is based on a net debt calculation, increases to levels specified in the Credit Agreement, the applicable interest rate on the revolving credit facility will step up by 25 basis points. The Company also pays a commitment fee of 30 to 35 basis points, payable quarterly, on the average daily unused amount of the revolving credit facility based on the Company's Consolidated Senior Secured Leverage Ratio as described above. On September 30, 2017 , there were no borrowings on the revolving credit facility and $80.5 million was drawn at December 31, 2016 . In addition, we had related outstanding letters of credit in the aggregate amount of $35.9 million and $29.7 million at September 30, 2017 and December 31, 2016 , respectively, which reduce the amount available for borrowings under the revolving credit facility. Senior Notes On May 31, 2017, we issued $950 million of 5.125% senior notes due June 1, 2025. The Company will pay interest on the senior notes semi-annually in arrears on June 1 and December 1 of each year, commencing December 1, 2017. We may redeem the senior notes, in whole or in part, at any time prior to June 1, 2020 at a redemption price equal to 100% of the principal amount plus a make-whole premium and thereafter at a premium that declines ratably to par in 2023. We capitalized approximately $14.7 million of debt issuance costs in connection with the senior notes. The senior notes are guaranteed by the Subsidiary Guarantors. Fair Value of Debt As of September 30, 2017 , the estimated fair value of our long-term debt amounted to $2,757.5 million . The estimates of fair value were based on broker-dealer quotes for our debt as of September 30, 2017 . The estimates presented on long-term financial instruments are not necessarily indicative of the amounts that would be realized in a current market exchange. |
Derivatives
| Derivatives | 9 Months Ended |
| Sep. 30, 2017 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Derivatives | Derivatives We are exposed to interest rate risk on our variable rate borrowings. Accordingly, interest rate fluctuations affect the amount of interest expense we are obligated to pay. We use interest rate derivatives with the objective of managing exposure to interest rate movements, thereby reducing the effect of interest rate changes and the effect they could have on future cash flows. Currently, interest rate cap agreements are used to accomplish this objective. • In August 2017, we entered into two interest rate caps with an aggregate notional amount of $800 million to manage our exposure to interest rate movements on our variable rate Credit Facility when three-month LIBOR exceeds 2.0% . The interest rate cap agreements each had an effective date of September 30, 2017 and each mature on September 30, 2019. We paid an aggregate amount of approximately $1.0 million for the caps in August 2017. • In March 2017, we entered into two interest rate caps with an aggregate notional amount of $400 million to manage our exposure to interest rate movements on our variable rate Credit Facility when three-month LIBOR exceeds 2.0% . The interest rate cap agreements each had an effective date of March 31, 2017 and each mature on March 31, 2019. We paid an aggregate amount of approximately $0.7 million for the caps in April 2017. • In August 2015, we purchased three interest rate caps for an aggregate amount of approximately $1.5 million with an aggregate notional amount of $800 million to manage our exposure to interest rate movements on our variable rate Credit Facility when three-month LIBOR (i) exceeded 2.0% between August 19, 2015 (the effective date) and September 29, 2016 and (ii) exceeded 1.75% between September 30, 2016 and August 19, 2017 (the maturity date). • In April 2015, we purchased two interest rate caps for an aggregate amount of approximately $0.7 million with an aggregate notional amount of $400 million to manage our exposure to interest rate movements on our variable rate Credit Facility when three-month LIBOR exceeded 1.5% . The interest rate cap agreements each had an effective date of April 16, 2015 and each matured on March 31, 2017. We are exposed to credit loss in the event of non-performance by the counterparties; however, non-performance is not anticipated. ASC 815, Derivatives and Hedging , requires companies to recognize all derivative instruments as either assets or liabilities at fair value in the balance sheet. The fair values of the interest rate derivatives are based on quoted market prices for similar instruments from commercial banks. The following table presents the fair value of our interest rate derivatives included in the consolidated balance sheets for the periods presented ( in millions ): Asset Derivatives September 30, 2017 December 31, 2016 Derivatives Not Designated as Hedging Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value 2017 Interest rate caps Other assets $ 1.4 Other assets N/A 2015 Interest rate caps Other assets N/A Other assets $ — We have not designated any of the interest rate caps as hedges for accounting purposes. Accordingly, changes in the fair value of the interest rate caps are recognized as "Interest expense" in the consolidated statement of income. The following table presents the effect of the interest rate derivatives on our consolidated statements of income for the periods presented ( in millions ): Location of Gain / (Loss) Recognized in Income on Derivatives Amount of Gain / (Loss) Recognized in Income on Derivatives Derivatives Not Designated as Hedging Instruments Three Months Ended Nine Months Ended 2017 2016 2017 2016 2017 Interest rate caps Interest expense $ 0.1 N/A $ (0.4 ) N/A 2015 Interest rate caps Interest expense — $ — — $ (0.7 ) |
Commitments and Contingencies
| Commitments and Contingencies | 9 Months Ended |
| Sep. 30, 2017 | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Commitments and Contingencies | Commitments and Contingencies We are involved in litigation and disputes arising in the ordinary course of business, such as actions related to injuries; property damage; handling, storage or disposal of vehicles; environmental laws and regulations; and other litigation incidental to the business such as employment matters and dealer disputes. Management considers the likelihood of loss or the incurrence of a liability, as well as the ability to reasonably estimate the amount of loss, in determining loss contingencies. We accrue an estimated loss contingency when it is probable that a liability has been incurred and the amount of loss (or range of possible losses) can be reasonably estimated. Management regularly evaluates current information available to determine whether accrual amounts should be adjusted. Accruals for contingencies including litigation and environmental matters are included in "Other accrued expenses" at undiscounted amounts and exclude claims for recoveries from insurance or other third parties. These accruals are adjusted periodically as assessment and remediation efforts progress, or as additional technical or legal information becomes available. If the amount of an actual loss is greater than the amount accrued, this could have an adverse impact on our operating results in that period. Such matters are generally not, in the opinion of management, likely to have a material adverse effect on our financial condition, results of operations or cash flows. Legal fees are expensed as incurred. There has been no significant change in the legal and regulatory proceedings which were disclosed in our Annual Report on Form 10-K for the year ended December 31, 2016 . |
Accumulated Other Comprehensive
| Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
| Sep. 30, 2017 | |
| Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
| Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Loss Accumulated other comprehensive loss consisted of the following ( in millions ): September 30, 2017 December 31, 2016 Foreign currency translation loss $ (23.0 ) $ (49.4 ) Unrealized gain on postretirement benefit obligation, net of tax 0.1 0.1 Accumulated other comprehensive loss $ (22.9 ) $ (49.3 ) |
Segment Information
| Segment Information | 9 Months Ended |
| Sep. 30, 2017 | |
| Segment Reporting [Abstract] | |
| Segment Information | Segment Information ASC 280, Segment Reporting , requires reporting of segment information that is consistent with the manner in which the chief operating decision maker operates and views the Company. Our operations are grouped into three operating segments: ADESA Auctions, IAA and AFC, which also serve as our reportable business segments. These reportable business segments offer different services and have fundamental differences in their operations. The holding company is maintained separately from the three reportable segments and includes expenses associated with the corporate offices, such as salaries, benefits and travel costs for the corporate management team, certain human resources, information technology and accounting costs, and certain insurance, treasury, legal and risk management costs. Holding company interest expense includes the interest expense incurred on capital leases and the corporate debt structure. Intercompany charges relate primarily to interest on intercompany debt or receivables and certain administrative costs allocated by the holding company. Financial information regarding our reportable segments is set forth below for the three months ended September 30, 2017 (in millions) : ADESA IAA AFC Holding Consolidated Operating revenues $ 477.1 $ 287.7 $ 78.2 $ — $ 843.0 Operating expenses Cost of services (exclusive of depreciation and amortization) 272.6 184.8 21.8 — 479.2 Selling, general and administrative 87.6 26.5 7.2 34.4 155.7 Depreciation and amortization 28.5 23.1 7.9 6.7 66.2 Total operating expenses 388.7 234.4 36.9 41.1 701.1 Operating profit (loss) 88.4 53.3 41.3 (41.1 ) 141.9 Interest expense 0.2 — 11.0 30.3 41.5 Other (income) expense, net 0.2 (0.1 ) (0.1 ) (0.1 ) (0.1 ) Intercompany expense (income) 11.4 9.5 (1.6 ) (19.3 ) — Income (loss) before income taxes 76.6 43.9 32.0 (52.0 ) 100.5 Income taxes 29.6 15.9 11.6 (19.4 ) 37.7 Net income (loss) $ 47.0 $ 28.0 $ 20.4 $ (32.6 ) $ 62.8 Total assets $ 3,214.0 $ 1,396.2 $ 2,206.2 $ 89.2 $ 6,905.6 Financial information regarding our reportable segments is set forth below for the three months ended September 30, 2016 (in millions) : ADESA Auctions IAA AFC Holding Company Consolidated Operating revenues $ 457.4 $ 261.0 $ 71.2 $ — $ 789.6 Operating expenses Cost of services (exclusive of depreciation and amortization) 269.5 168.5 21.5 — 459.5 Selling, general and administrative 80.6 26.7 7.1 31.9 146.3 Depreciation and amortization 25.3 21.9 7.8 5.5 60.5 Total operating expenses 375.4 217.1 36.4 37.4 666.3 Operating profit (loss) 82.0 43.9 34.8 (37.4 ) 123.3 Interest expense — — 8.7 27.6 36.3 Other (income) expense, net 0.5 — — 0.3 0.8 Intercompany expense (income) 11.7 9.4 (8.7 ) (12.4 ) — Income (loss) before income taxes 69.8 34.5 34.8 (52.9 ) 86.2 Income taxes 26.3 12.5 13.2 (20.2 ) 31.8 Net income (loss) $ 43.5 $ 22.0 $ 21.6 $ (32.7 ) $ 54.4 Total assets $ 2,981.5 $ 1,312.0 $ 2,205.6 $ 87.3 $ 6,586.4 Financial information regarding our reportable segments is set forth below for the nine months ended September 30, 2017 (in millions) : ADESA Auctions IAA AFC Holding Company Consolidated Operating revenues $ 1,464.3 $ 883.8 $ 219.5 $ — $ 2,567.6 Operating expenses Cost of services (exclusive of depreciation and amortization) 842.2 555.4 64.5 — 1,462.1 Selling, general and administrative 260.1 79.9 22.4 105.3 467.7 Depreciation and amortization 82.5 69.2 23.5 20.0 195.2 Total operating expenses 1,184.8 704.5 110.4 125.3 2,125.0 Operating profit (loss) 279.5 179.3 109.1 (125.3 ) 442.6 Interest expense 0.5 — 31.8 89.6 121.9 Other (income) expense, net (0.1 ) (1.0 ) (0.1 ) (0.5 ) (1.7 ) Loss on extinguishment of debt — — — 27.5 27.5 Intercompany expense (income) 34.7 28.3 (20.1 ) (42.9 ) — Income (loss) before income taxes 244.4 152.0 97.5 (199.0 ) 294.9 Income taxes 92.4 54.5 35.9 (77.1 ) 105.7 Net income (loss) $ 152.0 $ 97.5 $ 61.6 $ (121.9 ) $ 189.2 Financial information regarding our reportable segments is set forth below for the nine months ended September 30, 2016 (in millions) : ADESA Auctions IAA AFC Holding Company Consolidated Operating revenues $ 1,323.0 $ 795.4 $ 218.0 $ — $ 2,336.4 Operating expenses Cost of services (exclusive of depreciation and amortization) 767.1 509.3 62.7 — 1,339.1 Selling, general and administrative 237.8 78.9 21.9 95.7 434.3 Depreciation and amortization 72.6 64.4 23.4 15.5 175.9 Total operating expenses 1,077.5 652.6 108.0 111.2 1,949.3 Operating profit (loss) 245.5 142.8 110.0 (111.2 ) 387.1 Interest expense 0.2 — 24.7 75.9 100.8 Other (income) expense, net (0.6 ) (0.4 ) — 0.2 (0.8 ) Loss on extinguishment of debt — — — 4.0 4.0 Intercompany expense (income) 40.2 28.6 (25.1 ) (43.7 ) — Income (loss) before income taxes 205.7 114.6 110.4 (147.6 ) 283.1 Income taxes 76.7 42.5 41.8 (54.8 ) 106.2 Net income (loss) $ 129.0 $ 72.1 $ 68.6 $ (92.8 ) $ 176.9 |
Basis of Presentation and Nat20
| Basis of Presentation and Nature of Operations Accounting Policies (Policies) | 9 Months Ended |
| Sep. 30, 2017 | |
| Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
| Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements have been prepared in accordance with generally accepted accounting principles in the United States of America ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for annual financial statements. Operating results for interim periods are not necessarily indicative of results that may be expected for the year as a whole. In the opinion of management, the consolidated financial statements reflect all adjustments, generally consisting of normal recurring accruals, necessary for a fair statement of our results of operations, cash flows and financial position for the periods presented. These consolidated financial statements and condensed notes to consolidated financial statements are unaudited and should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2016, as filed with the Securities and Exchange Commission on February 24, 2017. The 2016 year-end consolidated balance sheet data included in this Form 10-Q was derived from the audited financial statements referenced above and does not include all disclosures required by U.S. GAAP for annual financial statements. |
| Use of Estimates | Use of Estimates The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenues, expenses and related disclosures at the date of the financial statements and during the reporting period. Actual results could differ from these estimates. |
| Accounting for Stock-Based Compensation | Accounting for Stock-Based Compensation The Company accounts for stock-based compensation under ASC 718, Compensation-Stock Compensation . We recognize all stock-based compensation as expense in the financial statements and that cost is measured as the fair value of the award at the grant date for equity-classified awards. We adopted ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting , in the first quarter of 2017. As a result of the adoption, the Company elected to recognize the impact of forfeitures as they occur. In addition, the Company now recognizes excess tax benefits and tax deficiencies related to employee stock-based compensation within income tax expense. As a result, on a prospective basis, we recognized $1.3 million and $6.3 million of excess tax benefits from stock-based compensation as a discrete item in our income tax expense for the three and nine months ended September 30, 2017, respectively. Historically, these amounts were recorded as additional paid-in capital. We have also retrospectively applied ASU 2016-09 to our consolidated statements of cash flows for the nine months ended September 30, 2016, which resulted in a reclassification of excess tax benefits from stock-based compensation of $7.1 million from cash flows provided by financing activities to cash flows provided by operating activities. |
| New Accounting Standards | New Accounting Standards In May 2017, the Financial Accounting Standards Board ("FASB") issued ASU 2017-09, Compensation - Stock Compensation (Topic 718): Scope of Modification Accounting , which clarifies when changes to the terms or conditions of a share-based payment award must be accounted for as modifications. The new guidance is expected to reduce diversity in practice and result in fewer changes to the terms of an award being accounted for as modifications. Changes that do not impact the fair value, vesting conditions or classification of an award will not require modification accounting. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of ASU 2017-09 will have a material impact on the consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment, which simplifies the test for goodwill impairment by eliminating Step 2 (implied fair value measurement). Instead goodwill impairment would be measured as the amount by which a reporting unit's carrying amount exceeds its fair value, not to exceed the carrying amount of goodwill. The new guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of ASU 2017-04 will have a material impact on the consolidated financial statements. In November 2016, the FASB issued ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash, which addresses diversity in practice that exists in the classification and presentation of changes in restricted cash on the statement of cash flows. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. We do not expect the adoption of ASU 2016-18 will have a material impact on the consolidated financial statements. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments, which provides guidance on the statement of cash flows presentation of certain transactions where diversity in practice exists. The new guidance is effective for annual periods beginning after December 15, 2017, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the impact the adoption of ASU 2016-15 will have on the consolidated financial statements. In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The update changes the methodology for measuring credit losses on financial instruments and the timing of when such losses are recorded. The new guidance is effective for annual periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted beginning in annual periods beginning after December 15, 2018, including interim periods within those fiscal years. We do not expect the adoption of ASU 2016-13 will have a material impact on the consolidated financial statements based on the short-term nature of AFC's loans. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which replaces existing lease guidance. The ASU is intended to provide enhanced transparency and comparability by requiring lessees to record right-of-use assets and corresponding lease liabilities on the balance sheet, with an exception for leases that meet the definition of a short-term lease. The new guidance will continue to classify leases as either finance or operating, with classification affecting the pattern of expense recognition in the statement of income. The new guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Early adoption is permitted and the ASU is required to be applied with a modified retrospective approach to each prior reporting period presented with various optional practical expedients. The Company is currently evaluating the impact the adoption of ASU 2016-02 will have on the consolidated financial statements and anticipates that the new guidance will significantly impact its consolidated financial statements, as the Company has a significant number of leases. Our current minimum commitments under non-cancelable operating leases are disclosed in the "Contractual Obligations" section of "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2016 and in Note 13 to the Consolidated Financial Statements of the same report. In addition, the recognition of these leases on our consolidated balance sheet would increase our net debt calculation which is included in the determination of our Consolidated Senior Secured Leverage Ratio. In this event, our Credit Agreement specifies that the covenant shall continue to be calculated as if the accounting standard had not occurred and that we could enter into negotiations to amend such provisions in the Credit Agreement so as to equitably reflect such changes with the desired result that the criteria for evaluating our financial condition would be the same after the change as if such change had not been made. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606) , which superseded the revenue recognition requirements in ASC 605, Revenue Recognition . The new guidance provides clarification on the recognition of revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. ASU 2014-09 also requires additional disclosures to help financial statement users better understand the nature, amount, timing and uncertainty of revenue that is recognized. In August 2015, the FASB issued ASU 2015-14 Revenue from Contracts with Customers (Topic 606): Deferral of the Effective Date , which defers the effective date of ASU 2014-09 by one year. In accordance with the agreed upon delay, the new guidance is effective for the first annual reporting period and interim periods beginning after December 15, 2017, and will require either retrospective application to each prior reporting period presented or retrospective application with the cumulative effect of initially applying the standard recognized at the date of adoption. The Company expects to use retrospective application with the cumulative effect as its transition method. The Company is still in the process of evaluating the impact the adoption of ASU 2014-09 will have on the consolidated financial statements and is assessing its contracts with customers. Currently, we do not expect the adoption of ASU 2014-09 will have a material impact on the consolidated financial statements. We anticipate we will expand our consolidated financial statement disclosures in order to comply with the ASU. |
Stock and Stock-Based Compens21
| Stock and Stock-Based Compensation Plans (Tables) | 9 Months Ended |
| Sep. 30, 2017 | |
| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
| Summary of stock-based compensation expense by type of award | The following table summarizes our stock-based compensation expense by type of award (in millions) : Three Months Ended Nine Months Ended 2017 2016 2017 2016 PRSUs $ 3.1 $ 2.5 $ 8.7 $ 8.2 RSUs 2.4 1.4 6.9 4.4 Service options 0.3 0.5 1.2 1.6 Total stock-based compensation expense $ 5.8 $ 4.4 $ 16.8 $ 14.2 |
Net Income Per Share (Tables)
| Net Income Per Share (Tables) | 9 Months Ended |
| Sep. 30, 2017 | |
| Earnings Per Share, Basic and Diluted [Abstract] | |
| Schedule of computation of net income per share | The following table sets forth the computation of net income per share (in millions except per share amounts) : Three Months Ended September 30, Nine Months Ended 2017 2016 2017 2016 Net income $ 62.8 $ 54.4 $ 189.2 $ 176.9 Weighted average common shares outstanding 136.4 138.0 136.8 137.6 Effect of dilutive stock options and restricted stock awards 1.3 1.7 1.5 1.8 Weighted average common shares outstanding and potential common shares 137.7 139.7 138.3 139.4 Net income per share Basic $ 0.46 $ 0.39 $ 1.38 $ 1.29 Diluted $ 0.46 $ 0.39 $ 1.37 $ 1.27 |
Finance Receivables and Oblig23
| Finance Receivables and Obligations Collateralized by Finance Receivables (Tables) | 9 Months Ended |
| Sep. 30, 2017 | |
| Notes, Loans and Financing Receivable, Net, Current [Abstract] | |
| Schedule of quantitative information about delinquencies, credit losses less recoveries ("net credit losses") and components of securitized financial assets and other related assets managed | The following tables present quantitative information about delinquencies, credit losses less recoveries ("net credit losses") and components of securitized financial assets and other related assets managed. For purposes of this illustration, delinquent receivables are defined as receivables 31 days or more past due. September 30, 2017 Net Credit Losses Three Months Ended September 30, 2017 Net Credit Losses Nine Months Ended September 30, 2017 Principal Amount of: (in millions) Receivables Receivables Delinquent Floorplan receivables $ 1,797.9 $ 8.0 $ 4.7 $ 26.8 Other loans 11.3 — — — Total receivables managed $ 1,809.2 $ 8.0 $ 4.7 $ 26.8 December 31, 2016 Net Credit Losses Three Months Ended September 30, 2016 Net Credit Losses Nine Months Ended September 30, 2016 Principal Amount of: (in millions) Receivables Receivables Delinquent Floorplan receivables $ 1,781.1 $ 12.0 $ 7.7 $ 18.3 Other loans 11.1 — — — Total receivables managed $ 1,792.2 $ 12.0 $ 7.7 $ 18.3 |
| Schedule of Obligations Collateralized by Finance Receivables | Obligations collateralized by finance receivables consisted of the following: September 30, December 31, Obligations collateralized by finance receivables, gross $ 1,274.2 $ 1,300.0 Unamortized securitization issuance costs (14.9 ) (19.7 ) Obligations collateralized by finance receivables $ 1,259.3 $ 1,280.3 |
Long-Term Debt (Tables)
| Long-Term Debt (Tables) | 9 Months Ended |
| Sep. 30, 2017 | |
| Long-term Debt, Unclassified [Abstract] | |
| Schedule of long-term debt | Long-term debt consisted of the following (in millions) : Interest Rate * Maturity September 30, 2017 December 31, 2016 Term Loan B-2 Adjusted LIBOR + 3.1875% March 11, 2021 $ — $ 1,082.7 Term Loan B-3 Adjusted LIBOR + 3.50% March 9, 2023 — 1,339.9 Term Loan B-4 Adjusted LIBOR + 2.25% March 11, 2021 714.9 — Term Loan B-5 Adjusted LIBOR + 2.50% March 9, 2023 1,046.8 — Revolving credit facility Adjusted LIBOR + 2.0% March 9, 2021 — 80.5 Senior notes 5.125% June 1, 2025 950.0 — Canadian line of credit CAD Prime + 0.50% Repayable upon demand — — Total debt 2,711.7 2,503.1 Unamortized debt issuance costs/discounts (23.9 ) (32.8 ) Current portion of long-term debt (16.8 ) (105.2 ) Long-term debt $ 2,671.0 $ 2,365.1 |
Derivatives (Tables)
| Derivatives (Tables) | 9 Months Ended |
| Sep. 30, 2017 | |
| Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
| Schedule of the fair value of the entity's interest rate derivatives included in the consolidated balance sheet | The following table presents the fair value of our interest rate derivatives included in the consolidated balance sheets for the periods presented ( in millions ): Asset Derivatives September 30, 2017 December 31, 2016 Derivatives Not Designated as Hedging Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value 2017 Interest rate caps Other assets $ 1.4 Other assets N/A 2015 Interest rate caps Other assets N/A Other assets $ — |
| Schedule of other derivatives not designated as hedging instruments, statements of financial performance | The following table presents the effect of the interest rate derivatives on our consolidated statements of income for the periods presented ( in millions ): Location of Gain / (Loss) Recognized in Income on Derivatives Amount of Gain / (Loss) Recognized in Income on Derivatives Derivatives Not Designated as Hedging Instruments Three Months Ended Nine Months Ended 2017 2016 2017 2016 2017 Interest rate caps Interest expense $ 0.1 N/A $ (0.4 ) N/A 2015 Interest rate caps Interest expense — $ — — $ (0.7 ) |
Accumulated Other Comprehensi26
| Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
| Sep. 30, 2017 | |
| Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
| Schedule of accumulated other comprehensive income (loss) | Accumulated other comprehensive loss consisted of the following ( in millions ): September 30, 2017 December 31, 2016 Foreign currency translation loss $ (23.0 ) $ (49.4 ) Unrealized gain on postretirement benefit obligation, net of tax 0.1 0.1 Accumulated other comprehensive loss $ (22.9 ) $ (49.3 ) |
Segment Information (Tables)
| Segment Information (Tables) | 9 Months Ended |
| Sep. 30, 2017 | |
| Segment Reporting [Abstract] | |
| Schedule of financial information regarding the entity's reportable segments | Financial information regarding our reportable segments is set forth below for the three months ended September 30, 2017 (in millions) : ADESA IAA AFC Holding Consolidated Operating revenues $ 477.1 $ 287.7 $ 78.2 $ — $ 843.0 Operating expenses Cost of services (exclusive of depreciation and amortization) 272.6 184.8 21.8 — 479.2 Selling, general and administrative 87.6 26.5 7.2 34.4 155.7 Depreciation and amortization 28.5 23.1 7.9 6.7 66.2 Total operating expenses 388.7 234.4 36.9 41.1 701.1 Operating profit (loss) 88.4 53.3 41.3 (41.1 ) 141.9 Interest expense 0.2 — 11.0 30.3 41.5 Other (income) expense, net 0.2 (0.1 ) (0.1 ) (0.1 ) (0.1 ) Intercompany expense (income) 11.4 9.5 (1.6 ) (19.3 ) — Income (loss) before income taxes 76.6 43.9 32.0 (52.0 ) 100.5 Income taxes 29.6 15.9 11.6 (19.4 ) 37.7 Net income (loss) $ 47.0 $ 28.0 $ 20.4 $ (32.6 ) $ 62.8 Total assets $ 3,214.0 $ 1,396.2 $ 2,206.2 $ 89.2 $ 6,905.6 Financial information regarding our reportable segments is set forth below for the three months ended September 30, 2016 (in millions) : ADESA Auctions IAA AFC Holding Company Consolidated Operating revenues $ 457.4 $ 261.0 $ 71.2 $ — $ 789.6 Operating expenses Cost of services (exclusive of depreciation and amortization) 269.5 168.5 21.5 — 459.5 Selling, general and administrative 80.6 26.7 7.1 31.9 146.3 Depreciation and amortization 25.3 21.9 7.8 5.5 60.5 Total operating expenses 375.4 217.1 36.4 37.4 666.3 Operating profit (loss) 82.0 43.9 34.8 (37.4 ) 123.3 Interest expense — — 8.7 27.6 36.3 Other (income) expense, net 0.5 — — 0.3 0.8 Intercompany expense (income) 11.7 9.4 (8.7 ) (12.4 ) — Income (loss) before income taxes 69.8 34.5 34.8 (52.9 ) 86.2 Income taxes 26.3 12.5 13.2 (20.2 ) 31.8 Net income (loss) $ 43.5 $ 22.0 $ 21.6 $ (32.7 ) $ 54.4 Total assets $ 2,981.5 $ 1,312.0 $ 2,205.6 $ 87.3 $ 6,586.4 Financial information regarding our reportable segments is set forth below for the nine months ended September 30, 2017 (in millions) : ADESA Auctions IAA AFC Holding Company Consolidated Operating revenues $ 1,464.3 $ 883.8 $ 219.5 $ — $ 2,567.6 Operating expenses Cost of services (exclusive of depreciation and amortization) 842.2 555.4 64.5 — 1,462.1 Selling, general and administrative 260.1 79.9 22.4 105.3 467.7 Depreciation and amortization 82.5 69.2 23.5 20.0 195.2 Total operating expenses 1,184.8 704.5 110.4 125.3 2,125.0 Operating profit (loss) 279.5 179.3 109.1 (125.3 ) 442.6 Interest expense 0.5 — 31.8 89.6 121.9 Other (income) expense, net (0.1 ) (1.0 ) (0.1 ) (0.5 ) (1.7 ) Loss on extinguishment of debt — — — 27.5 27.5 Intercompany expense (income) 34.7 28.3 (20.1 ) (42.9 ) — Income (loss) before income taxes 244.4 152.0 97.5 (199.0 ) 294.9 Income taxes 92.4 54.5 35.9 (77.1 ) 105.7 Net income (loss) $ 152.0 $ 97.5 $ 61.6 $ (121.9 ) $ 189.2 Financial information regarding our reportable segments is set forth below for the nine months ended September 30, 2016 (in millions) : ADESA Auctions IAA AFC Holding Company Consolidated Operating revenues $ 1,323.0 $ 795.4 $ 218.0 $ — $ 2,336.4 Operating expenses Cost of services (exclusive of depreciation and amortization) 767.1 509.3 62.7 — 1,339.1 Selling, general and administrative 237.8 78.9 21.9 95.7 434.3 Depreciation and amortization 72.6 64.4 23.4 15.5 175.9 Total operating expenses 1,077.5 652.6 108.0 111.2 1,949.3 Operating profit (loss) 245.5 142.8 110.0 (111.2 ) 387.1 Interest expense 0.2 — 24.7 75.9 100.8 Other (income) expense, net (0.6 ) (0.4 ) — 0.2 (0.8 ) Loss on extinguishment of debt — — — 4.0 4.0 Intercompany expense (income) 40.2 28.6 (25.1 ) (43.7 ) — Income (loss) before income taxes 205.7 114.6 110.4 (147.6 ) 283.1 Income taxes 76.7 42.5 41.8 (54.8 ) 106.2 Net income (loss) $ 129.0 $ 72.1 $ 68.6 $ (92.8 ) $ 176.9 |
Basis of Presentation and Nat28
| Basis of Presentation and Nature of Operations (Details) $ in Millions | Mar. 09, 2016 | Mar. 11, 2014 | Sep. 30, 2017USD ($)locationnetworkprovider | Sep. 30, 2017USD ($)locationnetworkprovider | Sep. 30, 2016USD ($) | May 31, 2017USD ($) | Dec. 31, 2016USD ($) |
| Basis of Presentation and Nature of Operations | |||||||
| Reclassification from cash flows (used by) provided by financing activities | $ (73.1) | $ 505.4 | |||||
| Reclassification to cash flows provided by operating activities | 487.9 | 290.9 | |||||
| Long-term debt | $ 2,711.7 | $ 2,711.7 | $ 2,503.1 | ||||
| ADESA Auctions | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Number of sites for whole car auctions | network | 75 | 75 | |||||
| Ranking of largest providers of used vehicle auctions and related services | provider | 2 | 2 | |||||
| IAA | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Number of sites for salvage vehicle auctions | network | 174 | 174 | |||||
| HBC | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Number of sites for salvage vehicle auctions | network | 11 | 11 | |||||
| AFC | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Number of floorplan financing locations | location | 128 | 128 | |||||
| Term Loan B-2 | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Long-term debt | $ 0 | $ 0 | 1,082.7 | ||||
| Term Loan B-3 | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Long-term debt | 0 | 0 | 1,339.9 | ||||
| Senior secured revolving credit facility | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Long-term debt | $ 0 | $ 0 | 80.5 | ||||
| Senior Notes | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Senior notes stated interest rate | 5.125% | 5.125% | 5.125% | ||||
| Long-term debt | $ 950 | $ 950 | $ 950 | $ 0 | |||
| Credit Agreement | Term Loan B-2 | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Term of debt instrument | 7 years | ||||||
| Credit Agreement | Term Loan B-3 | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Term of debt instrument | 7 years | ||||||
| Credit Agreement | Senior secured revolving credit facility | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Maximum borrowing capacity | 350 | 350 | $ 350 | ||||
| Adjustments from adoption of ASU 2016-09 | |||||||
| Basis of Presentation and Nature of Operations | |||||||
| Recognition of excess tax benefits from stock-based compensation in income tax expense | $ 1.3 | $ 6.3 | |||||
| Reclassification from cash flows (used by) provided by financing activities | 7.1 | ||||||
| Reclassification to cash flows provided by operating activities | $ 7.1 |
Acquisitions (Details)
| Acquisitions (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
| Acquisitions | ||
| Goodwill | $ 2,096.8 | $ 2,057 |
| Series of individually immaterial business acquisitions | ||
| Acquisitions | ||
| Purchase price for business acquired | 47 | |
| Goodwill | 35.5 | |
| Software | Series of individually immaterial business acquisitions | ||
| Acquisitions | ||
| Purchase price for the acquired business allocated to intangible assets | $ 6.1 |
Stock and Stock-Based Compens30
| Stock and Stock-Based Compensation Plan Summary (Details) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)installment$ / sharesshares | Sep. 30, 2016USD ($) | |
| Stock and Stock-Based Compensation Plans | ||||
| Stock-based compensation expense (in dollars) | $ 5.8 | $ 4.4 | $ 16.8 | $ 14.2 |
| PRSUs | ||||
| Stock and Stock-Based Compensation Plans | ||||
| Stock-based compensation expense (in dollars) | 3.1 | 2.5 | 8.7 | 8.2 |
| RSUs | ||||
| Stock and Stock-Based Compensation Plans | ||||
| Stock-based compensation expense (in dollars) | 2.4 | 1.4 | $ 6.9 | 4.4 |
| KAR Auction Services Inc 2009 Omnibus Stock and Incentive Plan | PRSUs - Operating Adjusted EPS | ||||
| Stock and Stock-Based Compensation Plans | ||||
| PRSUs and/or RSUs grants | shares | 0.2 | |||
| PRSUs vesting period | 3 years | |||
| PRSUs and/or RSUs grant date fair value | $ / shares | $ 44.43 | |||
| KAR Auction Services Inc 2009 Omnibus Stock and Incentive Plan | RSUs | ||||
| Stock and Stock-Based Compensation Plans | ||||
| PRSUs and/or RSUs grants | shares | 0.3 | |||
| Number of equal annual installments | installment | 3 | |||
| PRSUs and/or RSUs grant date fair value | $ / shares | $ 44.02 | |||
| KAR Auction Services Inc 2009 Omnibus Stock and Incentive Plan | Service options | ||||
| Stock and Stock-Based Compensation Plans | ||||
| Stock-based compensation expense (in dollars) | $ 0.3 | $ 0.5 | $ 1.2 | $ 1.6 |
Share Repurchase Plan (Details)
| Share Repurchase Plan (Details) - USD ($) $ / shares in Units, $ in Millions | Oct. 26, 2016 | Sep. 30, 2017 | Dec. 31, 2016 |
| Stock and Stock-Based Compensation Plans | |||
| Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 | |
| October 2016 Share Repurchase Authorization | |||
| Stock and Stock-Based Compensation Plans | |||
| Stock repurchase program, authorized amount | $ 500 | ||
| Stock repurchase program expiration date | Oct. 26, 2019 | ||
| Stock repurchased and retired during period (in shares) | 2,249,489 | 1,931,200 | |
| Stock repurchased and retired weighted average price per share | $ 44.45 | $ 41.61 |
Net Income Per Share (Details)
| Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
| Earnings Per Share, Basic and Diluted [Abstract] | ||||
| Net Income | $ 62.8 | $ 54.4 | $ 189.2 | $ 176.9 |
| Shares outstanding | ||||
| Weighted average common shares outstanding | 136.4 | 138 | 136.8 | 137.6 |
| Effect of dilutive stock options and restricted stock awards (in shares) | 1.3 | 1.7 | 1.5 | 1.8 |
| Weighted average common shares outstanding and potential common shares | 137.7 | 139.7 | 138.3 | 139.4 |
| Net income per share | ||||
| Basic (in dollars per share) | $ 0.46 | $ 0.39 | $ 1.38 | $ 1.29 |
| Diluted (in dollars per share) | $ 0.46 | $ 0.39 | $ 1.37 | $ 1.27 |
| Shares attributable to stock options excluded from the calculation of diluted net income per share | 0 | 0 | 0 | 0 |
| Securities excluded from calculation of earnings per share amount due to performance conditions not yet satisfied | 0.5 | 0.5 | 0.5 | 0.5 |
| Stock options outstanding (in shares) | 2 | 2.9 | 2 | 2.9 |
Equity Method Investment (Detai
| Equity Method Investment (Details) - USD ($) $ in Millions | Oct. 03, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 |
| Equity Method Investments | |||||
| Other (income) expense, net | $ (0.1) | $ 0.8 | $ (1.7) | $ (0.8) | |
| Equity method investment, ownership percentage | 50.00% | 50.00% | |||
| TradeRev | |||||
| Equity Method Investments | |||||
| Other (income) expense, net | $ 1.6 | $ 1.1 | $ 4.3 | $ 2.7 | |
| Borrowing increment for equity investee promissory note | 5 | 5 | |||
| Principal outstanding on equity investee promissory note | 5 | ||||
| Carrying amount of equity method investment | 18.5 | 18.5 | |||
| Maximum | TradeRev | |||||
| Equity Method Investments | |||||
| Borrowing capacity for equity investee promissory note | $ 15 | $ 15 | |||
| Subsequent event | |||||
| Equity Method Investments | |||||
| Equity method investment, consideration transferred | $ 50 | ||||
| Contingent consideration on certain terms | Subsequent event | |||||
| Equity Method Investments | |||||
| Term of contingent consideration | 4 years | ||||
| Maximum amount of undiscounted contingent payments related to acquisitions | $ 15 | ||||
| Contingent consideration on performance | Subsequent event | |||||
| Equity Method Investments | |||||
| Term of contingent consideration | 4 years | ||||
| Maximum amount of undiscounted contingent payments related to acquisitions | $ 60 |
Finance Receivables and Oblig34
| Finance Receivables and Obligations Collateralized by Finance Receivables (Details) CAD in Millions, $ in Millions | 3 Months Ended | 9 Months Ended | ||||
| Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017CAD | Dec. 31, 2016USD ($) | |
| Finance Receivables and Obligations Collateralized by Finance Receivables | ||||||
| Principal Amount of Receivables | $ 1,809.2 | $ 1,809.2 | $ 1,792.2 | |||
| Principal Amount of Receivables Delinquent | 8 | 8 | 12 | |||
| Net Credit Losses | 4.7 | $ 7.7 | 26.8 | $ 18.3 | ||
| Allowance for losses | 12.8 | 12.8 | 12 | |||
| Finance receivables pledged as security | 1,788.2 | 1,788.2 | 1,774.8 | |||
| Obligations collateralized by finance receivables, gross | 1,274.2 | 1,274.2 | 1,300 | |||
| Obligations collateralized by finance receivables | 1,259.3 | $ 1,259.3 | 1,280.3 | |||
| Minimum | ||||||
| Finance Receivables and Obligations Collateralized by Finance Receivables | ||||||
| Period to define financing receivables as past due (in days) | 31 days | |||||
| Floorplan receivables | ||||||
| Finance Receivables and Obligations Collateralized by Finance Receivables | ||||||
| Principal Amount of Receivables | 1,797.9 | $ 1,797.9 | 1,781.1 | |||
| Principal Amount of Receivables Delinquent | 8 | 8 | 12 | |||
| Net Credit Losses | 4.7 | 7.7 | 26.8 | 18.3 | ||
| Other Loans | ||||||
| Finance Receivables and Obligations Collateralized by Finance Receivables | ||||||
| Principal Amount of Receivables | 11.3 | 11.3 | 11.1 | |||
| Principal Amount of Receivables Delinquent | 0 | 0 | 0 | |||
| Net Credit Losses | 0 | $ 0 | 0 | $ 0 | ||
| AFC | ||||||
| Finance Receivables and Obligations Collateralized by Finance Receivables | ||||||
| Allowance for losses | 12.8 | 12.8 | 12 | |||
| Unamortized debt issuance costs | (14.9) | $ (14.9) | $ (19.7) | |||
| AFC | Minimum | ||||||
| Finance Receivables and Obligations Collateralized by Finance Receivables | ||||||
| Period to define financing receivables as past due (in days) | 31 days | |||||
| AFC Funding Corporation | ||||||
| Finance Receivables and Obligations Collateralized by Finance Receivables | ||||||
| Committed liquidity | $ 1,500 | $ 1,500 | ||||
| Cash reserve as security for obligations of collateralized financing receivables (as a percent) | 1.00% | |||||
| AFCI | ||||||
| Finance Receivables and Obligations Collateralized by Finance Receivables | ||||||
| Committed liquidity | CAD | CAD 125 | |||||
| Cash reserve as security for obligations of collateralized financing receivables (as a percent) | 1.00% | |||||
Long-Term Debt Summary (Details
| Long-Term Debt Summary (Details) - USD ($) $ in Millions | 9 Months Ended | ||
| Sep. 30, 2017 | May 31, 2017 | Dec. 31, 2016 | |
| Long-Term Debt | |||
| Total debt | $ 2,711.7 | $ 2,503.1 | |
| Unamortized debt issuance costs and unamortized debt discounts | (23.9) | (32.8) | |
| Current portion of long-term debt | (16.8) | (105.2) | |
| Long-term debt | 2,671 | 2,365.1 | |
| Term Loan B-2 | |||
| Long-Term Debt | |||
| Total debt | $ 0 | 1,082.7 | |
| Term Loan B-2 | Adjusted LIBOR | |||
| Long-Term Debt | |||
| Variable rate basis | Adjusted LIBOR | ||
| Interest rate basis (as a percent) | 3.1875% | ||
| Term Loan B-3 | |||
| Long-Term Debt | |||
| Total debt | $ 0 | 1,339.9 | |
| Term Loan B-3 | Adjusted LIBOR | |||
| Long-Term Debt | |||
| Variable rate basis | Adjusted LIBOR | ||
| Interest rate basis (as a percent) | 3.50% | ||
| Term Loan B-4 | |||
| Long-Term Debt | |||
| Total debt | $ 714.9 | 0 | |
| Term Loan B-4 | Adjusted LIBOR | |||
| Long-Term Debt | |||
| Variable rate basis | Adjusted LIBOR | ||
| Interest rate basis (as a percent) | 2.25% | ||
| Term Loan B-5 | |||
| Long-Term Debt | |||
| Total debt | $ 1,046.8 | 0 | |
| Term Loan B-5 | Adjusted LIBOR | |||
| Long-Term Debt | |||
| Variable rate basis | Adjusted LIBOR | ||
| Interest rate basis (as a percent) | 2.50% | ||
| Revolving credit facility | |||
| Long-Term Debt | |||
| Total debt | $ 0 | 80.5 | |
| Senior Notes | |||
| Long-Term Debt | |||
| Total debt | $ 950 | $ 950 | 0 |
| Senior notes stated interest rate | 5.125% | 5.125% | |
| Term Loan B-4 and Term Loan B-5 Aggregate Principal | |||
| Long-Term Debt | |||
| Total debt | $ 1,767 | ||
| Canadian line of credit | |||
| Long-Term Debt | |||
| Total debt | $ 0 | $ 0 | |
| Canadian line of credit | CAD Prime | |||
| Long-Term Debt | |||
| Variable rate basis | CAD Prime | ||
| Interest rate basis (as a percent) | 0.50% | ||
| Credit Agreement | Term Loan B-4 | |||
| Long-Term Debt | |||
| Total debt | 717 | ||
| Credit Agreement | Term Loan B-5 | |||
| Long-Term Debt | |||
| Total debt | $ 1,050 | ||
| Credit Agreement | Revolving credit facility | Adjusted LIBOR | |||
| Long-Term Debt | |||
| Variable rate basis | Adjusted LIBOR | ||
| Interest rate basis (as a percent) | 2.00% |
Credit Facilities (Details)
| Credit Facilities (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
| Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)item | Sep. 30, 2016USD ($) | May 31, 2017USD ($) | Dec. 31, 2016USD ($) | |
| Long-Term Debt | ||||||
| Payments for debt issuance costs/amendments | $ (22.6) | $ (19.5) | ||||
| Payments on long-term debt | $ (2,427.9) | (654.4) | ||||
| Percentage of equity interests of certain of the company's and the Subsidiary Guarantors' domestic subsidiaries pledged under the Credit Facility | 100.00% | |||||
| Percentage of equity interests of certain of the company's and the Subsidiary Guarantors' first-tier foreign subsidiaries pledged under the Credit Facility | 65.00% | |||||
| Estimated fair value of long-term debt | $ 2,757.5 | $ 2,757.5 | ||||
| Long-term debt | 2,711.7 | 2,711.7 | $ 2,503.1 | |||
| Loss on extinguishment of debt | $ 0 | $ 0 | 27.5 | $ 4 | ||
| Term Loan B-4 | ||||||
| Long-Term Debt | ||||||
| Payments on long-term debt | $ (2.2) | |||||
| Interest rate of loan (as a percent) | 3.63% | 3.63% | ||||
| Number of scheduled quarterly installments prepaid on Term Loans | item | 8 | |||||
| Quarterly installment payment as a percentage of original aggregate principal amount | 0.25% | |||||
| Net cash proceeds from sale lease-back, percentage | 50.00% | |||||
| Long-term debt | $ 714.9 | $ 714.9 | 0 | |||
| Term Loan B-4 | Adjusted LIBOR | ||||||
| Long-Term Debt | ||||||
| Variable rate basis | Adjusted LIBOR | |||||
| Interest rate basis (as a percent) | 2.25% | |||||
| Term Loan B-4 | Base rate | ||||||
| Long-Term Debt | ||||||
| Variable rate basis | Base Rate | |||||
| Interest rate basis (as a percent) | 1.25% | |||||
| Term Loan B-5 | ||||||
| Long-Term Debt | ||||||
| Payments on long-term debt | $ (3.2) | |||||
| Interest rate of loan (as a percent) | 3.88% | 3.88% | ||||
| Number of scheduled quarterly installments prepaid on Term Loans | item | 8 | |||||
| Quarterly installment payment as a percentage of original aggregate principal amount | 0.25% | |||||
| Net cash proceeds from sale lease-back, percentage | 50.00% | |||||
| Long-term debt | $ 1,046.8 | $ 1,046.8 | 0 | |||
| Term Loan B-5 | Adjusted LIBOR | ||||||
| Long-Term Debt | ||||||
| Variable rate basis | Adjusted LIBOR | |||||
| Interest rate basis (as a percent) | 2.50% | |||||
| Term Loan B-5 | Base rate | ||||||
| Long-Term Debt | ||||||
| Variable rate basis | Base Rate | |||||
| Interest rate basis (as a percent) | 1.50% | |||||
| Revolving credit facility | ||||||
| Long-Term Debt | ||||||
| Long-term debt | 0 | $ 0 | 80.5 | |||
| Letters of credit | ||||||
| Long-Term Debt | ||||||
| Maximum borrowing capacity | 75 | 75 | ||||
| Outstanding letters of credit | 35.9 | 35.9 | 29.7 | |||
| Swing Line Loan | ||||||
| Long-Term Debt | ||||||
| Maximum borrowing capacity | 90 | 90 | ||||
| Credit Agreement | ||||||
| Long-Term Debt | ||||||
| Payments for debt issuance costs/amendments | (7.8) | |||||
| Early termination penalties | 0 | |||||
| Loss on extinguishment of debt | 27.5 | |||||
| Credit Agreement | Term Loan B-4 | ||||||
| Long-Term Debt | ||||||
| Long-term debt | $ 717 | |||||
| Credit Agreement | Term Loan B-5 | ||||||
| Long-Term Debt | ||||||
| Long-term debt | 1,050 | |||||
| Credit Agreement | Revolving credit facility | ||||||
| Long-Term Debt | ||||||
| Maximum borrowing capacity | 350 | $ 350 | $ 350 | |||
| Commitment fee on the unused amount of the Credit Facility (as a percent) | 0.30% | |||||
| The commitment fee may step up to this percent | 0.35% | |||||
| Amount borrowed | $ 0 | $ 0 | $ 80.5 | |||
| Step up in interest rate (as a percent) | 0.25% | |||||
| Credit Agreement | Revolving credit facility | Adjusted LIBOR | ||||||
| Long-Term Debt | ||||||
| Variable rate basis | Adjusted LIBOR | |||||
| Interest rate basis (as a percent) | 2.00% | |||||
| Credit Agreement | Revolving credit facility | Base rate | ||||||
| Long-Term Debt | ||||||
| Variable rate basis | Base Rate | |||||
| Interest rate basis (as a percent) | 1.00% | |||||
Senior Notes (Details)
| Senior Notes (Details) - USD ($) $ in Millions | 9 Months Ended | ||
| Sep. 30, 2017 | Sep. 30, 2016 | May 31, 2017 | |
| Long-Term Debt | |||
| Payments for debt issuance costs/amendments | $ (22.6) | $ (19.5) | |
| Senior Notes | |||
| Long-Term Debt | |||
| Senior notes face amount | $ 950 | ||
| Senior notes stated interest rate | 5.125% | 5.125% | |
| Senior notes redemption price (as a percent) | 100.00% | ||
| Payments for debt issuance costs/amendments | $ (14.7) | ||
Derivatives (Details)
| Derivatives (Details) $ in Millions | Aug. 16, 2017USD ($)agreement | Apr. 06, 2017USD ($) | Mar. 31, 2017USD ($)agreement | Aug. 19, 2015USD ($)agreement | Apr. 16, 2015USD ($)agreement | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) |
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Aggregate amount paid for interest rate caps | $ 1.7 | $ 0 | ||||||
| August 2017 interest rate cap | ||||||||
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Number of derivative agreements purchased | agreement | 2 | |||||||
| Aggregate amount paid for interest rate caps | $ 1 | |||||||
| Aggregate notional amount | $ 800 | |||||||
| Variable rate basis | three-month LIBOR | |||||||
| August 2017 interest rate cap | Minimum | ||||||||
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Floor rate (as a percent) | 2.00% | |||||||
| March 2017 interest rate cap | ||||||||
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Number of derivative agreements purchased | agreement | 2 | |||||||
| Aggregate amount paid for interest rate caps | $ 0.7 | |||||||
| Aggregate notional amount | $ 400 | |||||||
| Variable rate basis | three-month LIBOR | |||||||
| March 2017 interest rate cap | Minimum | ||||||||
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Floor rate (as a percent) | 2.00% | |||||||
| Aug 2015 interest rate cap | ||||||||
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Number of derivative agreements purchased | agreement | 3 | |||||||
| Aggregate amount paid for interest rate caps | $ 1.5 | |||||||
| Aggregate notional amount | $ 800 | |||||||
| Variable rate basis | three-month LIBOR | |||||||
| Aug 2015 interest rate cap | Minimum | ||||||||
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Floor rate (as a percent) | 2.00% | |||||||
| Change in derivative cap interest rate | 1.75% | |||||||
| April 2015 interest rate cap | ||||||||
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Number of derivative agreements purchased | agreement | 2 | |||||||
| Aggregate amount paid for interest rate caps | $ 0.7 | |||||||
| Aggregate notional amount | $ 400 | |||||||
| Variable rate basis | three-month LIBOR | |||||||
| April 2015 interest rate cap | Minimum | ||||||||
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Floor rate (as a percent) | 1.50% | |||||||
| Not designated as hedging instrument | March and August 2017 interest rate caps | ||||||||
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Asset derivatives, fair value | $ 1.4 | |||||||
| Not designated as hedging instrument | April and August 2015 interest rate caps | ||||||||
| Fair value of the entity's interest rate derivatives included in the consolidated balance sheet | ||||||||
| Asset derivatives, fair value | $ 0 |
Derivatives (Details 2)
| Derivatives (Details 2) - Not designated as hedging instrument - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
| Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2017 | Sep. 30, 2016 | |
| March and August 2017 interest rate caps | ||||
| Effect of the interest rate derivatives on the entity's statement of equity and consolidated statement of income | ||||
| Amount of gain/(loss) recognized in income on derivative | $ 0.1 | $ (0.4) | ||
| April and August 2015 interest rate caps | ||||
| Effect of the interest rate derivatives on the entity's statement of equity and consolidated statement of income | ||||
| Amount of gain/(loss) recognized in income on derivative | $ 0 | $ 0 | $ 0 | $ (0.7) |
Commitments and Contingencies (
| Commitments and Contingencies (Details) $ in Millions | 9 Months Ended |
| Sep. 30, 2017USD ($) | |
| Commitments and Contingencies Disclosure [Abstract] | |
| Significant change in legal and regulatory proceedings | $ 0 |
Accumulated Other Comprehensi41
| Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions | Sep. 30, 2017 | Dec. 31, 2016 |
| Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
| Foreign currency translation loss | $ (23) | $ (49.4) |
| Unrealized gain on postretirement benefit obligation, net of tax | 0.1 | 0.1 |
| Accumulated other comprehensive loss | $ (22.9) | $ (49.3) |
Segment Information (Details)
| Segment Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
| Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Dec. 31, 2016USD ($) | |
| Segment Reporting [Abstract] | |||||
| Number of operating segments | segment | 3 | ||||
| Number of reportable segments | segment | 3 | ||||
| Segment Information | |||||
| ADESA Auction Services | $ 477.1 | $ 457.4 | $ 1,464.3 | $ 1,323 | |
| IAA Salvage Services | 287.7 | 261 | 883.8 | 795.4 | |
| AFC | 78.2 | 71.2 | 219.5 | 218 | |
| Operating revenues | 843 | 789.6 | 2,567.6 | 2,336.4 | |
| Operating expenses | |||||
| Cost of services (exclusive of depreciation and amortization) | 479.2 | 459.5 | 1,462.1 | 1,339.1 | |
| Selling, general and administrative | 155.7 | 146.3 | 467.7 | 434.3 | |
| Depreciation and amortization | 66.2 | 60.5 | 195.2 | 175.9 | |
| Total operating expenses | 701.1 | 666.3 | 2,125 | 1,949.3 | |
| Operating profit | 141.9 | 123.3 | 442.6 | 387.1 | |
| Interest expense | 41.5 | 36.3 | 121.9 | 100.8 | |
| Other (income) expense, net | (0.1) | 0.8 | (1.7) | (0.8) | |
| Loss on extinguishment of debt | 0 | 0 | 27.5 | 4 | |
| Intercompany expense (income) | 0 | 0 | 0 | 0 | |
| Income before income taxes | 100.5 | 86.2 | 294.9 | 283.1 | |
| Income taxes | 37.7 | 31.8 | 105.7 | 106.2 | |
| Net Income | 62.8 | 54.4 | 189.2 | 176.9 | |
| Total assets | 6,905.6 | 6,586.4 | 6,905.6 | 6,586.4 | $ 6,557.6 |
| Operating Segments | ADESA Auctions | |||||
| Segment Information | |||||
| ADESA Auction Services | 477.1 | 457.4 | 1,464.3 | 1,323 | |
| Operating expenses | |||||
| Cost of services (exclusive of depreciation and amortization) | 272.6 | 269.5 | 842.2 | 767.1 | |
| Selling, general and administrative | 87.6 | 80.6 | 260.1 | 237.8 | |
| Depreciation and amortization | 28.5 | 25.3 | 82.5 | 72.6 | |
| Total operating expenses | 388.7 | 375.4 | 1,184.8 | 1,077.5 | |
| Operating profit | 88.4 | 82 | 279.5 | 245.5 | |
| Interest expense | 0.2 | 0 | 0.5 | 0.2 | |
| Other (income) expense, net | 0.2 | 0.5 | (0.1) | (0.6) | |
| Loss on extinguishment of debt | 0 | 0 | |||
| Intercompany expense (income) | 11.4 | 11.7 | 34.7 | 40.2 | |
| Income before income taxes | 76.6 | 69.8 | 244.4 | 205.7 | |
| Income taxes | 29.6 | 26.3 | 92.4 | 76.7 | |
| Net Income | 47 | 43.5 | 152 | 129 | |
| Total assets | 3,214 | 2,981.5 | 3,214 | 2,981.5 | |
| Operating Segments | IAA | |||||
| Segment Information | |||||
| IAA Salvage Services | 287.7 | 261 | 883.8 | 795.4 | |
| Operating expenses | |||||
| Cost of services (exclusive of depreciation and amortization) | 184.8 | 168.5 | 555.4 | 509.3 | |
| Selling, general and administrative | 26.5 | 26.7 | 79.9 | 78.9 | |
| Depreciation and amortization | 23.1 | 21.9 | 69.2 | 64.4 | |
| Total operating expenses | 234.4 | 217.1 | 704.5 | 652.6 | |
| Operating profit | 53.3 | 43.9 | 179.3 | 142.8 | |
| Interest expense | 0 | 0 | 0 | 0 | |
| Other (income) expense, net | (0.1) | 0 | (1) | (0.4) | |
| Loss on extinguishment of debt | 0 | 0 | |||
| Intercompany expense (income) | 9.5 | 9.4 | 28.3 | 28.6 | |
| Income before income taxes | 43.9 | 34.5 | 152 | 114.6 | |
| Income taxes | 15.9 | 12.5 | 54.5 | 42.5 | |
| Net Income | 28 | 22 | 97.5 | 72.1 | |
| Total assets | 1,396.2 | 1,312 | 1,396.2 | 1,312 | |
| Operating Segments | AFC | |||||
| Segment Information | |||||
| AFC | 78.2 | 71.2 | 219.5 | 218 | |
| Operating expenses | |||||
| Cost of services (exclusive of depreciation and amortization) | 21.8 | 21.5 | 64.5 | 62.7 | |
| Selling, general and administrative | 7.2 | 7.1 | 22.4 | 21.9 | |
| Depreciation and amortization | 7.9 | 7.8 | 23.5 | 23.4 | |
| Total operating expenses | 36.9 | 36.4 | 110.4 | 108 | |
| Operating profit | 41.3 | 34.8 | 109.1 | 110 | |
| Interest expense | 11 | 8.7 | 31.8 | 24.7 | |
| Other (income) expense, net | (0.1) | 0 | (0.1) | 0 | |
| Loss on extinguishment of debt | 0 | 0 | |||
| Intercompany expense (income) | (1.6) | (8.7) | (20.1) | (25.1) | |
| Income before income taxes | 32 | 34.8 | 97.5 | 110.4 | |
| Income taxes | 11.6 | 13.2 | 35.9 | 41.8 | |
| Net Income | 20.4 | 21.6 | 61.6 | 68.6 | |
| Total assets | 2,206.2 | 2,205.6 | 2,206.2 | 2,205.6 | |
| Holding Company | |||||
| Segment Information | |||||
| Operating revenues | 0 | 0 | 0 | 0 | |
| Operating expenses | |||||
| Cost of services (exclusive of depreciation and amortization) | 0 | 0 | 0 | 0 | |
| Selling, general and administrative | 34.4 | 31.9 | 105.3 | 95.7 | |
| Depreciation and amortization | 6.7 | 5.5 | 20 | 15.5 | |
| Total operating expenses | 41.1 | 37.4 | 125.3 | 111.2 | |
| Operating profit | (41.1) | (37.4) | (125.3) | (111.2) | |
| Interest expense | 30.3 | 27.6 | 89.6 | 75.9 | |
| Other (income) expense, net | (0.1) | 0.3 | (0.5) | 0.2 | |
| Loss on extinguishment of debt | 27.5 | 4 | |||
| Intercompany expense (income) | (19.3) | (12.4) | (42.9) | (43.7) | |
| Income before income taxes | (52) | (52.9) | (199) | (147.6) | |
| Income taxes | (19.4) | (20.2) | (77.1) | (54.8) | |
| Net Income | (32.6) | (32.7) | (121.9) | (92.8) | |
| Total assets | $ 89.2 | $ 87.3 | $ 89.2 | $ 87.3 | |