KAR Auction Services (KAR) 10-Q 8 Aug 18 2018 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2018	Jul. 31, 2018
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	Jun. 30, 2018
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		134,288,849
Document Fiscal Year Focus	2,018
Document Fiscal Period Focus	Q2

Consolidated Statements of Inco

Consolidated Statements of Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Operating revenues
ADESA Auction Services	$ 538.3	$ 489.2	$ 1,066.4	$ 987.2
IAA Salvage Services	333.2	298.7	670.5	596.1
AFC	85.1	70.1	170.2	141.3
Total operating revenues	956.6	858	1,907.1	1,724.6
Operating expenses
Cost of services (exclusive of depreciation and amortization)	531.3	481.7	1,066.3	982.9
Selling, general and administrative	182.8	154.6	370.2	312
Depreciation and amortization	66.9	64.5	137.2	129
Total operating expenses	781	700.8	1,573.7	1,423.9
Operating profit	175.6	157.2	333.4	300.7
Interest expense	48.5	40.1	90	80.4
Other income, net	(1.3)	(1.5)	(1.4)	(1.6)
Loss on extinguishment of debt	0	27.5	0	27.5
Income before income taxes	128.4	91.1	244.8	194.4
Income taxes	35.2	33.9	61.6	68
Net Income	$ 93.2	$ 57.2	$ 183.2	$ 126.4
Net income per share
Basic (in dollars per share)	$ 0.69	$ 0.42	$ 1.36	$ 0.92
Diluted (in dollars per share)	0.69	0.41	1.35	0.91
Dividends declared per common share (in dollars per share)	$ 0.35	$ 0.32	$ 0.70	$ 0.64

Consolidated Statements of Comp

Consolidated Statements of Comprehensive Income - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Net Income	$ 93.2	$ 57.2	$ 183.2	$ 126.4
Other comprehensive income (loss)
Foreign currency translation gain (loss)	(11.4)	10.3	(18.3)	13.7
Comprehensive income	$ 81.8	$ 67.5	$ 164.9	$ 140.1

Consolidated Balance Sheets

Consolidated Balance Sheets - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Current assets
Cash and cash equivalents	$ 369.8	$ 317.2
Restricted cash	20.7	19.4
Trade receivables, net of allowances of $11.7 and $11.2	840.1	725.5
Finance receivables, net of allowances of $13.5 and $13.0	1,945.1	1,899.6
Other current assets	185.6	175.7
Total current assets	3,361.3	3,137.4
Other assets
Goodwill	2,208.5	2,191.7
Customer relationships, net of accumulated amortization of $842.6 and $805.0	332.5	375.6
Other intangible assets, net of accumulated amortization of $365.6 and $338.7	348.4	350.6
Other assets	38.9	20.8
Total other assets	2,928.3	2,938.7
Property and equipment, net of accumulated depreciation of $805.9 and $755.1	904.5	908.2
Total assets	7,194.1	6,984.3
Current liabilities
Accounts payable	874.4	682.7
Accrued employee benefits and compensation expenses	91.4	104.4
Accrued interest	8.7	7.3
Other accrued expenses	164.3	171.5
Income taxes payable	2.7	5.8
Dividends payable	47	47
Obligations collateralized by finance receivables	1,358	1,358.1
Current maturities of long-term debt	17.7	12.4
Total current liabilities	2,564.2	2,389.2
Non-current liabilities
Long-term debt	2,660.9	2,667.7
Deferred income tax liabilities	192	192.7
Other liabilities	264.5	249.8
Total non-current liabilities	3,117.4	3,110.2
Commitments and contingencies (Note 8)
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: June 30, 2018: 134,218,441, December 31, 2017: 134,315,118	1.3	1.3
Additional paid-in capital	1,213.6	1,251.8
Retained earnings	341.1	257
Accumulated other comprehensive loss	(43.5)	(25.2)
Total stockholders' equity	1,512.5	1,484.9
Total liabilities and stockholders' equity	$ 7,194.1	$ 6,984.3

Consolidated Balance Sheets (Pa

Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Trade receivables, allowances (in dollars)	$ 11.7	$ 11.2
Finance receivables, allowances (in dollars)	13.5	13
Customer relationships, accumulated amortization (in dollars)	842.6	805
Other intangible assets, accumulated amortization (in dollars)	365.6	338.7
Property and equipment, accumulated depreciation (in dollars)	$ 805.9	$ 755.1
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	134,218,441	134,315,118
Common stock, outstanding shares	134,218,441	134,315,118

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - 6 months ended Jun. 30, 2018 - USD ($) $ in Millions	Total	Common Stock	Additional Paid-In Capital	Retained Earnings	Accumulated Other Comprehensive Loss
Balance at Dec. 31, 2017	$ 1,484.9	$ 1.3	$ 1,251.8	$ 257	$ (25.2)
Balance (in shares) at Dec. 31, 2017	134,315,118	134,300,000
Increase (Decrease) in Stockholders' Equity
Cumulative effect adjustment for adoption of ASC Topic 606, net of tax	$ (3)			(3)
Net Income	183.2			183.2
Other comprehensive loss	(18.3)				(18.3)
Issuance of common stock under stock plans	8.4		8.4
Issuance of common stock under stock plans (in shares)		1,000,000
Surrender of RSUs for taxes	(10)		(10)
Surrender of RSUs for taxes (in shares)		(200,000)
Repurchase and retirement of common stock	(50)		(50)
Repurchase and retirement of common stock (in shares)		(900,000)
Stock-based compensation expense	11.5		11.5
Dividends earned under stock plans	0		1.9	(1.9)
Cash dividends declared to stockholders	(94.2)			(94.2)
Balance at Jun. 30, 2018	$ 1,512.5	$ 1.3	$ 1,213.6	$ 341.1	$ (43.5)
Balance (in shares) at Jun. 30, 2018	134,218,441	134,200,000

Consolidated Statements of Sto7

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Cash dividends declared to stockholders (in dollars per share)	$ 0.35	$ 0.32	$ 0.70	$ 0.64

Consolidated Statements of Cash

Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017
Operating activities
Net Income	$ 183.2	$ 126.4
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	137.2	129
Provision for credit losses	17.7	24
Deferred income taxes	0.1	6.8
Amortization of debt issuance costs	5.3	5.1
Stock-based compensation	11.5	11
Gain on disposal of fixed assets	(0.3)	(0.5)
Loss on extinguishment of debt	0	27.5
Other non-cash, net	(2.6)	4.9
Changes in operating assets and liabilities, net of acquisitions:
Trade receivables and other assets	(137.8)	(24.3)
Accounts payable and accrued expenses	172.4	64
Net cash provided by operating activities	386.7	373.9
Investing activities
Net (increase) decrease in finance receivables held for investment	(63)	36.4
Acquisition of businesses (net of cash acquired)	(23.3)	(47)
Purchases of property, equipment and computer software	(80.2)	(75.4)
Advance to equity method investee	0	(5)
Proceeds from the sale of property and equipment	1	0.3
Net cash used by investing activities	(165.5)	(90.7)
Financing activities
Net increase in book overdrafts	13.7	16.7
Net decrease in borrowings from lines of credit	0	(80.5)
Net increase (decrease) in obligations collateralized by finance receivables	1	(62)
Proceeds from long-term debt	0	2,717
Payments for debt issuance costs/amendments	0	(21.8)
Payments on long-term debt	(3.6)	(2,422.6)
Payments on capital leases	(15.4)	(14.9)
Payments of contingent consideration and deferred acquisition costs	(7.4)	(7)
Initial net investment for interest rate caps	0	(0.7)
Issuance of common stock under stock plans	8.4	6.9
Tax withholding payments for vested RSUs	(10)	(5.7)
Repurchase of common stock	(50)	0
Dividends paid to stockholders	(94.2)	(87.6)
Net cash (used by) provided by financing activities	(157.5)	37.8
Effect of exchange rate changes on cash	(9.8)	8
Net increase in cash, cash equivalents and restricted cash	53.9	329
Cash, cash equivalents and restricted cash at beginning of period	336.6	219.7
Cash, cash equivalents and restricted cash at end of period	390.5	548.7
Cash paid for interest, net of proceeds from interest rate caps	88	69.3
Cash paid for taxes, net of refunds	$ 71.7	$ 54.4

Basis of Presentation and Natur

Basis of Presentation and Nature of Operations	6 Months Ended
	Jun. 30, 2018
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"), Nth Gen Software Inc. ("TradeRev") 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"), the $350 million , senior secured revolving credit facility due March 9, 2021 (the "revolving credit facility"), and the $300 million , five -year senior secured revolving credit facility (the "2016 revolving credit facility"), the terms of which are set forth in the Credit Agreement. Term Loan B-2, Term Loan B-3 and the 2016 revolving credit facility were repaid in May 2017 with proceeds from Term Loan B-4, Term Loan B-5 and the senior notes (defined below); • "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"); • "KAR Auction Services" refers to KAR Auction Services, Inc. and not to its subsidiaries; and • "Senior notes" refers to the 5.125% senior notes due 2025 ( $950 million aggregate principal outstanding at June 30, 2018). Business and Nature of Operations As of June 30, 2018 , we have a North American network of 75 ADESA whole car auction sites and 177 IAA salvage vehicle auction sites; in addition, we offer online auctions for both whole car and salvage vehicles. ADESA also includes TradeRev, an online automotive remarketing system where dealers can launch and participate in real-time vehicle auctions at any time and ADESA Remarketing Limited, an online whole car vehicle remarketing business in the United Kingdom. IAA also includes HBC Vehicle Services Limited, which operates from 14 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 130 locations throughout the United States and Canada as of June 30, 2018 . Floorplan financing supports independent used vehicle dealers in North America who purchase vehicles at ADESA, IAA, TradeRev, 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. Potential Spin-off In February 2018, the Company announced that its board of directors had approved a plan to pursue the separation of its salvage auction business through a spin-off. The Company also announced that the separation was subject to customary regulatory approvals, the execution of intercompany agreements between the Company and the new salvage auction company, final approval of the board of directors and other customary matters. Basis of Presentation The accompanying unaudited condensed 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, 2017, as filed with the Securities and Exchange Commission on February 21, 2018. The 2017 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 the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based in part on assumptions about current, and for some estimates, future economic and market conditions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. Although the current estimates contemplate current conditions and expected future changes, as appropriate, it is reasonably possible that future conditions could differ from these estimates, which could materially affect our results of operations and financial position. Among other effects, such changes could result in future impairments of goodwill, intangible assets and long-lived assets, incremental losses on finance receivables, additional allowances on accounts receivable and deferred tax assets, changes in litigation and other loss contingencies and changes in self-insurance reserves. Equity Method Investment Prior to the acquisition of TradeRev in October 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. The Company’s share in the net losses of TradeRev for the three and six months ended June 30, 2017, was $1.0 million and $2.7 million , respectively. This amount was recorded to “Other income, net” in the consolidated statements of income. Revenue Recognition 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. Topic 606 also requires additional disclosures to help financial statement users better understand the nature, amount, timing and uncertainty of revenue that is recognized. In preparation for the adoption of Topic 606, we assessed our contracts with customers, evaluated our revenue streams and compared current accounting practices to those required under the new standard. As a result of these efforts, we identified certain impacts to the presentation and timing of revenue recognition for a contract liability (deferred revenue) related to a material right associated with certain volume-related rebates. We have implemented the appropriate changes to our processes and controls to support recognition and disclosure under Topic 606. We adopted Topic 606 in the first quarter of 2018 using the modified retrospective transition method and recognized the cumulative effect of initially applying the new standard as a decrease of $3.0 million to the opening balance of retained earnings . Prior periods will not be retrospectively adjusted. There were no material contract assets, contract liabilities or deferred contract costs recorded on the consolidated balance sheet as of June 30, 2018. For each of our primary revenue streams, cash flows are consistent with the timing of revenue recognition. For the six months ended June 30, 2018, revenue recognized from performance obligations related to prior periods was not material. Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less and contracts where revenue is recognized as invoiced, is not material. ADESA Auction Services Revenues and the related costs are recognized when the services are performed. Auction fees from sellers and buyers are recognized upon the sale of the vehicle through the auction process. Most of the vehicles that are sold through auctions are consigned to ADESA by the seller and held at ADESA's facilities or third-party locations. ADESA does not take title to these consigned vehicles and recognizes revenue when a service is performed as requested by the owner of the vehicle. ADESA does not record the gross selling price of the consigned vehicles sold at auction as revenue. Instead, ADESA records only its auction fees as revenue because it does not take title to the consigned vehicles and has no influence on the vehicle auction selling price agreed to by the seller and buyer at the auction. Our buyer fees and dealer seller fees are typically based on a tiered structure with fees increasing with the sale price of the vehicle, while institutional seller fees are typically fixed. Revenues from reconditioning, logistics, vehicle inspection and certification, titling, evaluation and salvage recovery services are generally recognized when the services are performed. ADESA generally enforces its rights to payment for seller transactions through net settlement provisions following the sale of a vehicle. IAA Salvage Services Revenues (including vehicle sales and fee income) are generally recognized at the date the vehicles are sold at auction. Most of the vehicles that are sold through auctions are consigned to IAA by the seller and held at IAA's facilities. IAA does not take title to these consigned vehicles and recognizes revenue when a service is performed as requested by the owner of the vehicle. IAA does not record the gross selling price of the consigned vehicles sold at auction as revenue. IAA seller revenues represent the combination of the inbound tow, processing, storage, titling, enhancing and auctioning of the vehicle and are recognized at the date the vehicles are sold at auction. Related costs are deferred and recognized at the time of sale. Generally, IAA buyer revenue is recognized on the date the vehicles are sold at auction. IAA typically enforces its rights to payment for seller transactions through net settlement provisions following the sale of a vehicle. Buyer revenue not recognized at the date the vehicles are sold at auction includes annual buyer registration fees, which are recognized on a straight-line basis, and certain buyer-related fees, which are recognized when payment is received. AFC AFC's revenue is comprised of interest and fee income, provision for credit losses and other revenues associated with our finance receivables, as well as other service revenue. The following table summarizes the primary components of AFC's revenue: Three Months Ended June 30, Six Months Ended June 30, AFC Revenue (in millions) 2018 2017 2018 2017 Interest and fee income $ 80.5 $ 70.0 $ 162.4 $ 141.3 Other revenue 3.3 3.0 6.2 5.9 Provision for credit losses (7.1 ) (11.4 ) (14.8 ) (22.5 ) Other service revenue 8.4 8.5 16.4 16.6 $ 85.1 $ 70.1 $ 170.2 $ 141.3 Interest and fee income Interest on finance receivables is recognized based on the number of days the vehicle remains financed. AFC ceases recognition of interest on finance receivables when the loans become delinquent, which is generally 31 days past due. Dealers are also charged a fee to floorplan a vehicle ("floorplan fee"), to extend the terms of the receivable ("curtailment fee") and a document processing fee. AFC fee income including floorplan and curtailment fees is recognized over the life of the finance receivable. Other revenue Other revenue includes lot check fees, filing fees, lien holder payoff services and other related program fees, each of which are charged to and collected from AFC's customers. Other service revenue Other service revenue represents the revenue generated by Preferred Warranties, Inc. ("PWI"). PWI receives advance payments for vehicle service contracts and unearned revenue is deferred and recognized over the terms of the contracts utilizing a historical earnings curve. The average term of the contracts originated in 2017 was approximately 1.7 years and PWI had unearned revenue of $34.0 million at June 30, 2018 . 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. The Company adopted ASU 2017-09 in the first quarter of 2018 and the adoption did not 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. The Company adopted ASU 2016-18 in the first quarter of 2018 and the adoption resulted in an increase of $0.4 million in net cash used by investing activities for the six months ended June 30, 2017. The increase related to reclassifying the changes in our restricted cash balance from investing activities to the cash and cash equivalents balances within the consolidated statements of cash flows. 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. The Company adopted ASU 2016-15 in the first quarter of 2018 and the adoption did not 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 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, 2017 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 been adopted 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.

Acquisition

Acquisition	6 Months Ended
	Jun. 30, 2018
Business Combinations [Abstract]
Acquisition	Acquisition On February 1, 2018, the Company completed the acquisition of STRATIM Systems Inc. ("STRATIM"). STRATIM is a mobility and fleet management software company based in San Francisco, California that uses data analytics to help fleet owners manage, maintain and service their fleets. The addition of STRATIM supplements KAR’s broad portfolio of wholesale used vehicle physical, online and digital auction marketplaces and ancillary service providers. The purchase price of STRATIM, net of cash acquired, was approximately $23.3 million . The purchase price for the acquired business was allocated to acquired assets and liabilities based upon fair values, including $1.8 million to intangible assets, representing the fair value of software of $1.4 million and acquired customer relationships of $0.4 million , which are being amortized over their expected useful lives. The purchased assets included accounts receivable, computer equipment and software. The purchase accounting associated with this acquisition is preliminary, subject to determination of tax attributes and final valuation results. The acquisition resulted in goodwill of $22.0 million . The goodwill is recorded in the ADESA Auctions reportable segment. The financial impact of the acquisition, including pro forma financial results, was immaterial to the Company’s consolidated results for the six months ended June 30, 2018. Financial results for STRATIM have been included in our consolidated financial statements from the date of acquisition.

Stock and Stock-Based Compensat

Stock and Stock-Based Compensation Plans	6 Months Ended
	Jun. 30, 2018
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 and/or cash-based awards to our executive officers and key 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 PRSUs $ 2.2 $ 2.5 $ 5.6 $ 5.6 RSUs 2.8 2.3 5.7 4.5 Service options 0.1 0.4 0.2 0.9 Total stock-based compensation expense $ 5.1 $ 5.2 $ 11.5 $ 11.0 PRSUs and RSUs In the first six months of 2018, 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 cumulative operating adjusted net income 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 $54.11 per share, 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 June 30, 2018, we repurchased and retired a total of 932,400 shares of common stock in the open market at a weighted average price of $53.62 per share under the October 2016 authorization. In 2017 we repurchased and retired 3,279,089 shares of common stock in the open market at a weighted average price of $45.74 per share under the October 2016 authorization.

Net Income Per Share

Net Income Per Share	6 Months Ended
	Jun. 30, 2018
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income $ 93.2 $ 57.2 $ 183.2 $ 126.4 Weighted average common shares outstanding 134.6 137.2 134.6 137.0 Effect of dilutive stock options and restricted stock awards 1.0 1.2 1.2 1.4 Weighted average common shares outstanding and potential common shares 135.6 138.4 135.8 138.4 Net income per share Basic $ 0.69 $ 0.42 $ 1.36 $ 0.92 Diluted $ 0.69 $ 0.41 $ 1.35 $ 0.91 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 six months ended June 30, 2018 and 2017 . In addition, approximately 0.7 million PRSUs were excluded from the calculation of diluted net income per share for the three months ended June 30, 2018 and 2017 , and approximately 0.7 million PRSUs were excluded from the calculation of diluted net income per share for the six months ended June 30, 2018 and 2017 . Total options outstanding at June 30, 2018 and 2017 were 1.4 million and 2.2 million , respectively.

Finance Receivables and Obligat

Finance Receivables and Obligations Collateralized by Finance Receivables	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018. 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 June 30, 2018. 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. June 30, 2018 Net Credit Losses Three Months Ended June 30, 2018 Net Credit Losses Six Months Ended June 30, 2018 Total Amount of: (in millions) Receivables Receivables Delinquent Floorplan receivables $ 1,946.7 $ 10.0 $ 6.8 $ 14.2 Other loans 11.9 — — — Total receivables managed $ 1,958.6 $ 10.0 $ 6.8 $ 14.2 December 31, 2017 Net Credit Losses Three Months Ended June 30, 2017 Net Credit Losses Six Months Ended June 30, 2017 Total Amount of: (in millions) Receivables Receivables Delinquent Floorplan receivables $ 1,901.1 $ 12.1 $ 11.2 $ 22.1 Other loans 11.5 — — — Total receivables managed $ 1,912.6 $ 12.1 $ 11.2 $ 22.1 AFC's allowance for losses was $13.5 million and $13.0 million at June 30, 2018 and December 31, 2017, respectively. As of June 30, 2018 and December 31, 2017, $1,909.3 million and $1,893.2 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: June 30, December 31, Obligations collateralized by finance receivables, gross $ 1,368.1 $ 1,371.4 Unamortized securitization issuance costs (10.1 ) (13.3 ) Obligations collateralized by finance receivables $ 1,358.0 $ 1,358.1 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 June 30, 2018 , we were in compliance with the covenants in the securitization agreements.

Long-Term Debt

Long-Term Debt	6 Months Ended
	Jun. 30, 2018
Long-term Debt, Unclassified [Abstract]
Long-Term Debt	Long-Term Debt Long-term debt consisted of the following (in millions) : Interest Rate* Maturity June 30, 2018 December 31, 2017 Term Loan B-4 Adjusted LIBOR + 2.25% March 11, 2021 $ 709.8 $ 711.3 Term Loan B-5 Adjusted LIBOR + 2.50% March 9, 2023 1,039.5 1,041.6 Revolving credit facility Adjusted LIBOR + 2.0% March 9, 2021 — — Senior notes 5.125% June 1, 2025 950.0 950.0 Canadian line of credit CAD Prime + 0.50% Repayable upon demand — — Total debt 2,699.3 2,702.9 Unamortized debt issuance costs (20.7 ) (22.8 ) Current portion of long-term debt (17.7 ) (12.4 ) Long-term debt $ 2,660.9 $ 2,667.7 *The interest rates presented in the table above represent the rates in place at June 30, 2018. 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 2016 revolving credit facility. The Credit Facility is available for letters of credit, working capital, permitted acquisitions and general corporate purposes. 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. The rates on Term Loan B-4 and Term Loan B-5 were 4.38% and 4.63% at June 30, 2018, respectively. 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 June 30, 2018 . There were no borrowings on the revolving credit facility at June 30, 2018 and December 31, 2017. In addition, we had related outstanding letters of credit in the aggregate amount of $32.4 million and $42.8 million at June 30, 2018 and December 31, 2017, respectively, which reduce the amount available for borrowings under the revolving credit facility. Fair Value of Debt As of June 30, 2018, the estimated fair value of our long-term debt amounted to $2,652.0 million . The estimates of fair value were based on broker-dealer quotes for our debt as of June 30, 2018. 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	6 Months Ended
	Jun. 30, 2018
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 matures 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 matures on March 31, 2019. We paid an aggregate amount of approximately $0.7 million for the caps in April 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 June 30, 2018 December 31, 2017 Derivatives Not Designated as Hedging Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value 2017 Interest rate caps Other assets $ 7.7 Other assets $ 2.6 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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 2017 Interest rate caps Interest expense $ 1.4 $ (0.4 ) $ 6.1 $ (0.5 )

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2018
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, 2017.

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	6 Months Ended
	Jun. 30, 2018
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 ): June 30, 2018 December 31, 2017 Foreign currency translation loss $ (43.6 ) $ (25.3 ) Unrealized gain on postretirement benefit obligation, net of tax 0.1 0.1 Accumulated other comprehensive loss $ (43.5 ) $ (25.2 )

Segment Information

Segment Information	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 (in millions) : ADESA IAA AFC Holding Consolidated Operating revenues $ 538.3 $ 333.2 $ 85.1 $ — $ 956.6 Operating expenses Cost of services (exclusive of depreciation and amortization) 307.2 201.1 23.0 — 531.3 Selling, general and administrative 108.3 28.7 7.5 38.3 182.8 Depreciation and amortization 31.3 24.7 3.5 7.4 66.9 Total operating expenses 446.8 254.5 34.0 45.7 781.0 Operating profit (loss) 91.5 78.7 51.1 (45.7 ) 175.6 Interest expense 0.6 — 14.8 33.1 48.5 Other (income) expense, net (0.2 ) (0.8 ) — (0.3 ) (1.3 ) Intercompany expense (income) 7.6 9.5 (0.7 ) (16.4 ) — Income (loss) before income taxes 83.5 70.0 37.0 (62.1 ) 128.4 Income taxes 23.5 17.6 9.3 (15.2 ) 35.2 Net income (loss) $ 60.0 $ 52.4 $ 27.7 $ (46.9 ) $ 93.2 Total assets $ 3,171.6 $ 1,421.6 $ 2,354.1 $ 246.8 $ 7,194.1 Financial information regarding our reportable segments is set forth below for the three months ended June 30, 2017 (in millions) : ADESA Auctions IAA AFC Holding Company Consolidated Operating revenues $ 489.2 $ 298.7 $ 70.1 $ — $ 858.0 Operating expenses Cost of services (exclusive of depreciation and amortization) 278.7 181.5 21.5 — 481.7 Selling, general and administrative 85.2 27.5 7.3 34.6 154.6 Depreciation and amortization 26.9 22.9 7.8 6.9 64.5 Total operating expenses 390.8 231.9 36.6 41.5 700.8 Operating profit (loss) 98.4 66.8 33.5 (41.5 ) 157.2 Interest expense 0.1 — 10.5 29.5 40.1 Other (income) expense, net (0.7 ) (0.5 ) — (0.3 ) (1.5 ) Loss on extinguishment of debt — — — 27.5 27.5 Intercompany expense (income) 11.5 9.4 (9.8 ) (11.1 ) — Income (loss) before income taxes 87.5 57.9 32.8 (87.1 ) 91.1 Income taxes 33.8 20.6 12.5 (33.0 ) 33.9 Net income (loss) $ 53.7 $ 37.3 $ 20.3 $ (54.1 ) $ 57.2 Total assets $ 3,313.8 $ 1,311.7 $ 2,140.6 $ 90.6 $ 6,856.7 Financial information regarding our reportable segments is set forth below for the six months ended June 30, 2018 (in millions): ADESA IAA AFC Holding Consolidated Operating revenues $ 1,066.4 $ 670.5 $ 170.2 $ — $ 1,907.1 Operating expenses Cost of services (exclusive of depreciation and amortization) 613.2 407.8 45.3 — 1,066.3 Selling, general and administrative 217.1 59.2 15.5 78.4 370.2 Depreciation and amortization 62.5 48.8 11.3 14.6 137.2 Total operating expenses 892.8 515.8 72.1 93.0 1,573.7 Operating profit (loss) 173.6 154.7 98.1 (93.0 ) 333.4 Interest expense 1.2 — 28.2 60.6 90.0 Other (income) expense, net (0.5 ) (0.8 ) — (0.1 ) (1.4 ) Intercompany expense (income) 19.7 18.9 (1.2 ) (37.4 ) — Income (loss) before income taxes 153.2 136.6 71.1 (116.1 ) 244.8 Income taxes 39.0 33.9 17.7 (29.0 ) 61.6 Net income (loss) $ 114.2 $ 102.7 $ 53.4 $ (87.1 ) $ 183.2 Financial information regarding our reportable segments is set forth below for the six months ended June 30, 2017 (in millions) : ADESA Auctions IAA AFC Holding Company Consolidated Operating revenues $ 987.2 $ 596.1 $ 141.3 $ — $ 1,724.6 Operating expenses Cost of services (exclusive of depreciation and amortization) 569.6 370.6 42.7 — 982.9 Selling, general and administrative 172.5 53.4 15.2 70.9 312.0 Depreciation and amortization 54.0 46.1 15.6 13.3 129.0 Total operating expenses 796.1 470.1 73.5 84.2 1,423.9 Operating profit (loss) 191.1 126.0 67.8 (84.2 ) 300.7 Interest expense 0.3 — 20.8 59.3 80.4 Other (income) expense, net (0.3 ) (0.9 ) — (0.4 ) (1.6 ) Loss on extinguishment of debt — — — 27.5 27.5 Intercompany expense (income) 23.3 18.8 (18.5 ) (23.6 ) — Income (loss) before income taxes 167.8 108.1 65.5 (147.0 ) 194.4 Income taxes 62.8 38.6 24.3 (57.7 ) 68.0 Net income (loss) $ 105.0 $ 69.5 $ 41.2 $ (89.3 ) $ 126.4 Geographic Information Our foreign operations include Canada, Mexico and the U.K. Most of our operations outside the U.S. are in Canada. Information regarding the geographic areas of our operations is set forth below (in millions) : Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Operating revenues U.S. $ 824.5 $ 747.5 $ 1,653.1 $ 1,508.3 Foreign 132.1 110.5 254.0 216.3 $ 956.6 $ 858.0 $ 1,907.1 $ 1,724.6

Basis of Presentation and Nat19

Basis of Presentation and Nature of Operations Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation The accompanying unaudited condensed 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, 2017, as filed with the Securities and Exchange Commission on February 21, 2018. The 2017 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 the consolidated financial statements in conformity with U.S. GAAP requires management to make estimates based in part on assumptions about current, and for some estimates, future economic and market conditions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. Although the current estimates contemplate current conditions and expected future changes, as appropriate, it is reasonably possible that future conditions could differ from these estimates, which could materially affect our results of operations and financial position. Among other effects, such changes could result in future impairments of goodwill, intangible assets and long-lived assets, incremental losses on finance receivables, additional allowances on accounts receivable and deferred tax assets, changes in litigation and other loss contingencies and changes in self-insurance reserves.
Equity Method Investment	Equity Method Investment Prior to the acquisition of TradeRev in October 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. The Company’s share in the net losses of TradeRev for the three and six months ended June 30, 2017, was $1.0 million and $2.7 million , respectively. This amount was recorded to “Other income, net” in the consolidated statements of income.
Revenue Recognition	Revenue Recognition 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. Topic 606 also requires additional disclosures to help financial statement users better understand the nature, amount, timing and uncertainty of revenue that is recognized. In preparation for the adoption of Topic 606, we assessed our contracts with customers, evaluated our revenue streams and compared current accounting practices to those required under the new standard. As a result of these efforts, we identified certain impacts to the presentation and timing of revenue recognition for a contract liability (deferred revenue) related to a material right associated with certain volume-related rebates. We have implemented the appropriate changes to our processes and controls to support recognition and disclosure under Topic 606. We adopted Topic 606 in the first quarter of 2018 using the modified retrospective transition method and recognized the cumulative effect of initially applying the new standard as a decrease of $3.0 million to the opening balance of retained earnings . Prior periods will not be retrospectively adjusted. There were no material contract assets, contract liabilities or deferred contract costs recorded on the consolidated balance sheet as of June 30, 2018. For each of our primary revenue streams, cash flows are consistent with the timing of revenue recognition. For the six months ended June 30, 2018, revenue recognized from performance obligations related to prior periods was not material. Revenue expected to be recognized in any future year related to remaining performance obligations, excluding revenue pertaining to contracts that have an original expected duration of one year or less and contracts where revenue is recognized as invoiced, is not material. ADESA Auction Services Revenues and the related costs are recognized when the services are performed. Auction fees from sellers and buyers are recognized upon the sale of the vehicle through the auction process. Most of the vehicles that are sold through auctions are consigned to ADESA by the seller and held at ADESA's facilities or third-party locations. ADESA does not take title to these consigned vehicles and recognizes revenue when a service is performed as requested by the owner of the vehicle. ADESA does not record the gross selling price of the consigned vehicles sold at auction as revenue. Instead, ADESA records only its auction fees as revenue because it does not take title to the consigned vehicles and has no influence on the vehicle auction selling price agreed to by the seller and buyer at the auction. Our buyer fees and dealer seller fees are typically based on a tiered structure with fees increasing with the sale price of the vehicle, while institutional seller fees are typically fixed. Revenues from reconditioning, logistics, vehicle inspection and certification, titling, evaluation and salvage recovery services are generally recognized when the services are performed. ADESA generally enforces its rights to payment for seller transactions through net settlement provisions following the sale of a vehicle. IAA Salvage Services Revenues (including vehicle sales and fee income) are generally recognized at the date the vehicles are sold at auction. Most of the vehicles that are sold through auctions are consigned to IAA by the seller and held at IAA's facilities. IAA does not take title to these consigned vehicles and recognizes revenue when a service is performed as requested by the owner of the vehicle. IAA does not record the gross selling price of the consigned vehicles sold at auction as revenue. IAA seller revenues represent the combination of the inbound tow, processing, storage, titling, enhancing and auctioning of the vehicle and are recognized at the date the vehicles are sold at auction. Related costs are deferred and recognized at the time of sale. Generally, IAA buyer revenue is recognized on the date the vehicles are sold at auction. IAA typically enforces its rights to payment for seller transactions through net settlement provisions following the sale of a vehicle. Buyer revenue not recognized at the date the vehicles are sold at auction includes annual buyer registration fees, which are recognized on a straight-line basis, and certain buyer-related fees, which are recognized when payment is received. AFC AFC's revenue is comprised of interest and fee income, provision for credit losses and other revenues associated with our finance receivables, as well as other service revenue. The following table summarizes the primary components of AFC's revenue: Three Months Ended June 30, Six Months Ended June 30, AFC Revenue (in millions) 2018 2017 2018 2017 Interest and fee income $ 80.5 $ 70.0 $ 162.4 $ 141.3 Other revenue 3.3 3.0 6.2 5.9 Provision for credit losses (7.1 ) (11.4 ) (14.8 ) (22.5 ) Other service revenue 8.4 8.5 16.4 16.6 $ 85.1 $ 70.1 $ 170.2 $ 141.3 Interest and fee income Interest on finance receivables is recognized based on the number of days the vehicle remains financed. AFC ceases recognition of interest on finance receivables when the loans become delinquent, which is generally 31 days past due. Dealers are also charged a fee to floorplan a vehicle ("floorplan fee"), to extend the terms of the receivable ("curtailment fee") and a document processing fee. AFC fee income including floorplan and curtailment fees is recognized over the life of the finance receivable. Other revenue Other revenue includes lot check fees, filing fees, lien holder payoff services and other related program fees, each of which are charged to and collected from AFC's customers. Other service revenue Other service revenue represents the revenue generated by Preferred Warranties, Inc. ("PWI"). PWI receives advance payments for vehicle service contracts and unearned revenue is deferred and recognized over the terms of the contracts utilizing a historical earnings curve. The average term of the contracts originated in 2017 was approximately 1.7 years and PWI had unearned revenue of $34.0 million at June 30, 2018 .
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. The Company adopted ASU 2017-09 in the first quarter of 2018 and the adoption did not 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. The Company adopted ASU 2016-18 in the first quarter of 2018 and the adoption resulted in an increase of $0.4 million in net cash used by investing activities for the six months ended June 30, 2017. The increase related to reclassifying the changes in our restricted cash balance from investing activities to the cash and cash equivalents balances within the consolidated statements of cash flows. 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. The Company adopted ASU 2016-15 in the first quarter of 2018 and the adoption did not 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 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, 2017 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 been adopted 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.

Basis of Presentation and Nat20

Basis of Presentation and Nature of Operations Accounting Policies (Tables)	6 Months Ended
	Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Summary of the primary components of AFC's revenue	AFC's revenue is comprised of interest and fee income, provision for credit losses and other revenues associated with our finance receivables, as well as other service revenue. The following table summarizes the primary components of AFC's revenue: Three Months Ended June 30, Six Months Ended June 30, AFC Revenue (in millions) 2018 2017 2018 2017 Interest and fee income $ 80.5 $ 70.0 $ 162.4 $ 141.3 Other revenue 3.3 3.0 6.2 5.9 Provision for credit losses (7.1 ) (11.4 ) (14.8 ) (22.5 ) Other service revenue 8.4 8.5 16.4 16.6 $ 85.1 $ 70.1 $ 170.2 $ 141.3

Stock and Stock-Based Compens21

Stock and Stock-Based Compensation Plans (Tables)	6 Months Ended
	Jun. 30, 2018
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 PRSUs $ 2.2 $ 2.5 $ 5.6 $ 5.6 RSUs 2.8 2.3 5.7 4.5 Service options 0.1 0.4 0.2 0.9 Total stock-based compensation expense $ 5.1 $ 5.2 $ 11.5 $ 11.0

Net Income Per Share (Tables)

Net Income Per Share (Tables)	6 Months Ended
	Jun. 30, 2018
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 Net income $ 93.2 $ 57.2 $ 183.2 $ 126.4 Weighted average common shares outstanding 134.6 137.2 134.6 137.0 Effect of dilutive stock options and restricted stock awards 1.0 1.2 1.2 1.4 Weighted average common shares outstanding and potential common shares 135.6 138.4 135.8 138.4 Net income per share Basic $ 0.69 $ 0.42 $ 1.36 $ 0.92 Diluted $ 0.69 $ 0.41 $ 1.35 $ 0.91

Finance Receivables and Oblig23

Finance Receivables and Obligations Collateralized by Finance Receivables (Tables)	6 Months Ended
	Jun. 30, 2018
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. June 30, 2018 Net Credit Losses Three Months Ended June 30, 2018 Net Credit Losses Six Months Ended June 30, 2018 Total Amount of: (in millions) Receivables Receivables Delinquent Floorplan receivables $ 1,946.7 $ 10.0 $ 6.8 $ 14.2 Other loans 11.9 — — — Total receivables managed $ 1,958.6 $ 10.0 $ 6.8 $ 14.2 December 31, 2017 Net Credit Losses Three Months Ended June 30, 2017 Net Credit Losses Six Months Ended June 30, 2017 Total Amount of: (in millions) Receivables Receivables Delinquent Floorplan receivables $ 1,901.1 $ 12.1 $ 11.2 $ 22.1 Other loans 11.5 — — — Total receivables managed $ 1,912.6 $ 12.1 $ 11.2 $ 22.1
Schedule of obligations collateralized by finance receivables	Obligations collateralized by finance receivables consisted of the following: June 30, December 31, Obligations collateralized by finance receivables, gross $ 1,368.1 $ 1,371.4 Unamortized securitization issuance costs (10.1 ) (13.3 ) Obligations collateralized by finance receivables $ 1,358.0 $ 1,358.1

Long-Term Debt (Tables)

Long-Term Debt (Tables)	6 Months Ended
	Jun. 30, 2018
Long-term Debt, Unclassified [Abstract]
Schedule of long-term debt	Long-term debt consisted of the following (in millions) : Interest Rate* Maturity June 30, 2018 December 31, 2017 Term Loan B-4 Adjusted LIBOR + 2.25% March 11, 2021 $ 709.8 $ 711.3 Term Loan B-5 Adjusted LIBOR + 2.50% March 9, 2023 1,039.5 1,041.6 Revolving credit facility Adjusted LIBOR + 2.0% March 9, 2021 — — Senior notes 5.125% June 1, 2025 950.0 950.0 Canadian line of credit CAD Prime + 0.50% Repayable upon demand — — Total debt 2,699.3 2,702.9 Unamortized debt issuance costs (20.7 ) (22.8 ) Current portion of long-term debt (17.7 ) (12.4 ) Long-term debt $ 2,660.9 $ 2,667.7

Derivatives (Tables)

Derivatives (Tables)	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 December 31, 2017 Derivatives Not Designated as Hedging Instruments Balance Sheet Location Fair Value Balance Sheet Location Fair Value 2017 Interest rate caps Other assets $ 7.7 Other assets $ 2.6
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 June 30, Six Months Ended June 30, 2018 2017 2018 2017 2017 Interest rate caps Interest expense $ 1.4 $ (0.4 ) $ 6.1 $ (0.5 )

Accumulated Other Comprehensi26

Accumulated Other Comprehensive Income (Loss) (Tables)	6 Months Ended
	Jun. 30, 2018
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 ): June 30, 2018 December 31, 2017 Foreign currency translation loss $ (43.6 ) $ (25.3 ) Unrealized gain on postretirement benefit obligation, net of tax 0.1 0.1 Accumulated other comprehensive loss $ (43.5 ) $ (25.2 )

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jun. 30, 2018
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 June 30, 2018 (in millions) : ADESA IAA AFC Holding Consolidated Operating revenues $ 538.3 $ 333.2 $ 85.1 $ — $ 956.6 Operating expenses Cost of services (exclusive of depreciation and amortization) 307.2 201.1 23.0 — 531.3 Selling, general and administrative 108.3 28.7 7.5 38.3 182.8 Depreciation and amortization 31.3 24.7 3.5 7.4 66.9 Total operating expenses 446.8 254.5 34.0 45.7 781.0 Operating profit (loss) 91.5 78.7 51.1 (45.7 ) 175.6 Interest expense 0.6 — 14.8 33.1 48.5 Other (income) expense, net (0.2 ) (0.8 ) — (0.3 ) (1.3 ) Intercompany expense (income) 7.6 9.5 (0.7 ) (16.4 ) — Income (loss) before income taxes 83.5 70.0 37.0 (62.1 ) 128.4 Income taxes 23.5 17.6 9.3 (15.2 ) 35.2 Net income (loss) $ 60.0 $ 52.4 $ 27.7 $ (46.9 ) $ 93.2 Total assets $ 3,171.6 $ 1,421.6 $ 2,354.1 $ 246.8 $ 7,194.1 Financial information regarding our reportable segments is set forth below for the three months ended June 30, 2017 (in millions) : ADESA Auctions IAA AFC Holding Company Consolidated Operating revenues $ 489.2 $ 298.7 $ 70.1 $ — $ 858.0 Operating expenses Cost of services (exclusive of depreciation and amortization) 278.7 181.5 21.5 — 481.7 Selling, general and administrative 85.2 27.5 7.3 34.6 154.6 Depreciation and amortization 26.9 22.9 7.8 6.9 64.5 Total operating expenses 390.8 231.9 36.6 41.5 700.8 Operating profit (loss) 98.4 66.8 33.5 (41.5 ) 157.2 Interest expense 0.1 — 10.5 29.5 40.1 Other (income) expense, net (0.7 ) (0.5 ) — (0.3 ) (1.5 ) Loss on extinguishment of debt — — — 27.5 27.5 Intercompany expense (income) 11.5 9.4 (9.8 ) (11.1 ) — Income (loss) before income taxes 87.5 57.9 32.8 (87.1 ) 91.1 Income taxes 33.8 20.6 12.5 (33.0 ) 33.9 Net income (loss) $ 53.7 $ 37.3 $ 20.3 $ (54.1 ) $ 57.2 Total assets $ 3,313.8 $ 1,311.7 $ 2,140.6 $ 90.6 $ 6,856.7 Financial information regarding our reportable segments is set forth below for the six months ended June 30, 2018 (in millions): ADESA IAA AFC Holding Consolidated Operating revenues $ 1,066.4 $ 670.5 $ 170.2 $ — $ 1,907.1 Operating expenses Cost of services (exclusive of depreciation and amortization) 613.2 407.8 45.3 — 1,066.3 Selling, general and administrative 217.1 59.2 15.5 78.4 370.2 Depreciation and amortization 62.5 48.8 11.3 14.6 137.2 Total operating expenses 892.8 515.8 72.1 93.0 1,573.7 Operating profit (loss) 173.6 154.7 98.1 (93.0 ) 333.4 Interest expense 1.2 — 28.2 60.6 90.0 Other (income) expense, net (0.5 ) (0.8 ) — (0.1 ) (1.4 ) Intercompany expense (income) 19.7 18.9 (1.2 ) (37.4 ) — Income (loss) before income taxes 153.2 136.6 71.1 (116.1 ) 244.8 Income taxes 39.0 33.9 17.7 (29.0 ) 61.6 Net income (loss) $ 114.2 $ 102.7 $ 53.4 $ (87.1 ) $ 183.2 Financial information regarding our reportable segments is set forth below for the six months ended June 30, 2017 (in millions) : ADESA Auctions IAA AFC Holding Company Consolidated Operating revenues $ 987.2 $ 596.1 $ 141.3 $ — $ 1,724.6 Operating expenses Cost of services (exclusive of depreciation and amortization) 569.6 370.6 42.7 — 982.9 Selling, general and administrative 172.5 53.4 15.2 70.9 312.0 Depreciation and amortization 54.0 46.1 15.6 13.3 129.0 Total operating expenses 796.1 470.1 73.5 84.2 1,423.9 Operating profit (loss) 191.1 126.0 67.8 (84.2 ) 300.7 Interest expense 0.3 — 20.8 59.3 80.4 Other (income) expense, net (0.3 ) (0.9 ) — (0.4 ) (1.6 ) Loss on extinguishment of debt — — — 27.5 27.5 Intercompany expense (income) 23.3 18.8 (18.5 ) (23.6 ) — Income (loss) before income taxes 167.8 108.1 65.5 (147.0 ) 194.4 Income taxes 62.8 38.6 24.3 (57.7 ) 68.0 Net income (loss) $ 105.0 $ 69.5 $ 41.2 $ (89.3 ) $ 126.4
Schedule of information regarding the geographic areas of entity's operations	Our foreign operations include Canada, Mexico and the U.K. Most of our operations outside the U.S. are in Canada. Information regarding the geographic areas of our operations is set forth below (in millions) : Three Months Ended June 30, Six Months Ended June 30, 2018 2017 2018 2017 Operating revenues U.S. $ 824.5 $ 747.5 $ 1,653.1 $ 1,508.3 Foreign 132.1 110.5 254.0 216.3 $ 956.6 $ 858.0 $ 1,907.1 $ 1,724.6

Basis of Presentation and Nat28

Basis of Presentation and Nature of Operations (Details) $ in Millions	Mar. 09, 2016USD ($)	Mar. 11, 2014	Jun. 30, 2018USD ($)locationnetworkprovider	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)locationnetworkprovider	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)	May 31, 2017USD ($)
Basis of Presentation and Nature of Operations
Cumulative effect adjustment for adoption of ASC Topic 606, net of tax					$ (3)
Net cash used by investing activities					(165.5)	$ (90.7)
Long-term debt			$ 2,699.3		2,699.3		$ 2,702.9
Other (income) expense, net			(1.3)	$ (1.5)	(1.4)	(1.6)
AFC Revenue			$ 85.1	70.1	$ 170.2	141.3
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			177		177
HBC
Basis of Presentation and Nature of Operations
Number of sites for salvage vehicle auctions | network			14		14
AFC
Basis of Presentation and Nature of Operations
Number of floorplan financing locations | location			130		130
Interest and fee income			$ 80.5	70	$ 162.4	141.3
Other revenue			3.3	3	6.2	5.9
Provision for credit losses			(7.1)	(11.4)	(14.8)	(22.5)
Other service revenue			8.4	8.5	16.4	16.6
AFC Revenue			85.1	70.1	170.2	141.3
PWI
Basis of Presentation and Nature of Operations
PWI average term of contracts originated							1 year 8 months
PWI unearned revenue			34		34
Senior secured revolving credit facility
Basis of Presentation and Nature of Operations
Long-term debt			$ 0		$ 0		$ 0
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
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
Credit Agreement | 2016 revolving credit facility
Basis of Presentation and Nature of Operations
Maximum borrowing capacity	$ 300
Term of debt instrument	5 years
TradeRev
Basis of Presentation and Nature of Operations
Other (income) expense, net				$ 1		2.7
Adjustments from adoption of ASU 2016-18
Basis of Presentation and Nature of Operations
Net cash used by investing activities						$ 0.4
Minimum
Basis of Presentation and Nature of Operations
Period to define financing receivables as past due (in days)					31 days

Acquisition (Details)

Acquisition (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Acquisitions
Goodwill	$ 2,208.5	$ 2,191.7
STRATIM
Acquisitions
Purchase price for business acquired	23.3
Purchase price for the acquired business allocated to intangible assets	1.8
Goodwill	22
Computer software & technology | STRATIM
Acquisitions
Purchase price for the acquired business allocated to intangible assets	1.4
Customer relationships | STRATIM
Acquisitions
Purchase price for the acquired business allocated to intangible assets	$ 0.4

Stock and Stock-Based Compens30

Stock and Stock-Based Compensation Plan Summary (Details) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)installment$ / sharesshares	Jun. 30, 2017USD ($)
Stock and Stock-Based Compensation Plans
Stock-based compensation expense (in dollars)	$ 5.1	$ 5.2	$ 11.5	$ 11
PRSUs
Stock and Stock-Based Compensation Plans
Stock-based compensation expense (in dollars)	2.2	2.5	5.6	5.6
RSUs
Stock and Stock-Based Compensation Plans
Stock-based compensation expense (in dollars)	2.8	2.3	5.7	4.5
Service options
Stock and Stock-Based Compensation Plans
Stock-based compensation expense (in dollars)	$ 0.1	$ 0.4	$ 0.2	$ 0.9
KAR Auction Services Inc 2009 Omnibus Stock and Incentive Plan | PRSUs - Operating Adjusted EPS
Stock and Stock-Based Compensation Plans
PRSUs and/or RSUs grant | shares			0.2
PRSU vesting period			3 years
PRSUs and/or RSUs grant date fair value | $ / shares			$ 54.11
KAR Auction Services Inc 2009 Omnibus Stock and Incentive Plan | RSUs
Stock and Stock-Based Compensation Plans
PRSUs and/or RSUs grant | shares			0.3
Number of equal annual installments | installment			3
PRSUs and/or RSUs grant date fair value | $ / shares			$ 54.11

Share Repurchase Plan (Details)

Share Repurchase Plan (Details) - USD ($) $ / shares in Units, $ in Millions	Oct. 26, 2016	Jun. 30, 2018	Dec. 31, 2017
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)		932,400	3,279,089
Stock repurchased and retired weighted average price per share		$ 53.62	$ 45.74

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Earnings Per Share, Basic and Diluted [Abstract]
Net Income	$ 93.2	$ 57.2	$ 183.2	$ 126.4
Shares outstanding
Weighted average common shares outstanding	134.6	137.2	134.6	137
Effect of dilutive stock options and restricted stock awards (in shares)	1	1.2	1.2	1.4
Weighted average common shares outstanding and potential common shares	135.6	138.4	135.8	138.4
Net income per share
Basic (in dollars per share)	$ 0.69	$ 0.42	$ 1.36	$ 0.92
Diluted (in dollars per share)	$ 0.69	$ 0.41	$ 1.35	$ 0.91
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	0.7	0.7	0.7	0.7
Stock options outstanding (in shares)	1.4	2.2	1.4	2.2

Finance Receivables and Oblig33

Finance Receivables and Obligations Collateralized by Finance Receivables (Details) $ in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018CAD ($)	Dec. 31, 2017USD ($)
Finance Receivables and Obligations Collateralized by Finance Receivables
Principal Amount of Receivables	$ 1,958.6		$ 1,958.6			$ 1,912.6
Principal Amount of Receivables Delinquent	10		10			12.1
Net Credit Losses	6.8	$ 11.2	14.2	$ 22.1
Allowance for losses	13.5		13.5			13
Finance receivables pledged as security	1,909.3		1,909.3			1,893.2
Obligations collateralized by finance receivables, gross	1,368.1		1,368.1			1,371.4
Obligations collateralized by finance receivables	1,358		$ 1,358			1,358.1
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	1,946.7		$ 1,946.7			1,901.1
Principal Amount of Receivables Delinquent	10		10			12.1
Net Credit Losses	6.8	11.2	14.2	22.1
Other Loans
Finance Receivables and Obligations Collateralized by Finance Receivables
Principal Amount of Receivables	11.9		11.9			11.5
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	13.5		13.5			13
Unamortized debt issuance costs	(10.1)		$ (10.1)			$ (13.3)
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					$ 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	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	May 31, 2017
Long-Term Debt
Total debt	$ 2,699.3	$ 2,702.9
Unamortized debt issuance costs	(20.7)	(22.8)
Current portion of long-term debt	(17.7)	(12.4)
Long-term debt	2,660.9	2,667.7
Term Loan B-4
Long-Term Debt
Total debt	$ 709.8	711.3
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	$ 1,039.5	1,041.6
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	0
Revolving credit facility | Adjusted LIBOR
Long-Term Debt
Variable rate basis	Adjusted LIBOR
Interest rate basis (as a percent)	2.00%
Senior Notes
Long-Term Debt
Total debt	$ 950	950
Senior notes stated interest rate	5.125%		5.125%
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 Facilities (Details)

Credit Facilities (Details) - USD ($) $ in Millions	6 Months Ended
	Jun. 30, 2018	Dec. 31, 2017	May 31, 2017
Long-Term Debt
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	$ 2,652
Long-term debt	$ 2,699.3	$ 2,702.9
Term Loan B-4
Long-Term Debt
Interest rate of loan (as a percent)	4.38%
Long-term debt	$ 709.8	711.3
Term Loan B-5
Long-Term Debt
Interest rate of loan (as a percent)	4.63%
Long-term debt	$ 1,039.5	1,041.6
Revolving credit facility
Long-Term Debt
Long-term debt	0	0
Letters of credit
Long-Term Debt
Outstanding letters of credit	32.4	42.8
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
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

Derivatives (Details)

Derivatives (Details) $ in Millions	Aug. 16, 2017USD ($)agreement	Apr. 06, 2017USD ($)	Mar. 31, 2017USD ($)agreement	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Fair value of the entity's interest rate derivatives included in the consolidated balance sheet
Aggregate amount paid for interest rate caps				$ 0	$ 0.7
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%
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				$ 7.7		$ 2.6

Derivatives (Details 2)

Derivatives (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
March and August 2017 interest rate caps | Not designated as hedging instrument
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	$ 1.4	$ (0.4)	$ 6.1	$ (0.5)

Commitments and Contingencies (

Commitments and Contingencies (Details) $ in Millions	6 Months Ended
	Jun. 30, 2018USD ($)
Commitments and Contingencies Disclosure [Abstract]
Significant change in legal and regulatory proceedings	$ 0

Accumulated Other Comprehensi39

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Millions	Jun. 30, 2018	Dec. 31, 2017
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract]
Foreign currency translation loss	$ (43.6)	$ (25.3)
Unrealized gain on postretirement benefit obligation, net of tax	0.1	0.1
Accumulated other comprehensive loss	$ (43.5)	$ (25.2)

Segment Information (Details 1)

Segment Information (Details 1) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018USD ($)	Jun. 30, 2017USD ($)	Jun. 30, 2018USD ($)segment	Jun. 30, 2017USD ($)	Dec. 31, 2017USD ($)
Segment Reporting [Abstract]
Number of operating segments | segment			3
Number of reportable segments | segment			3
Segment Information
ADESA Auction Services	$ 538.3	$ 489.2	$ 1,066.4	$ 987.2
IAA Salvage Services	333.2	298.7	670.5	596.1
AFC	85.1	70.1	170.2	141.3
Operating revenues	956.6	858	1,907.1	1,724.6
Operating expenses
Cost of services (exclusive of depreciation and amortization)	531.3	481.7	1,066.3	982.9
Selling, general and administrative	182.8	154.6	370.2	312
Depreciation and amortization	66.9	64.5	137.2	129
Total operating expenses	781	700.8	1,573.7	1,423.9
Operating profit	175.6	157.2	333.4	300.7
Interest expense	48.5	40.1	90	80.4
Other (income) expense, net	(1.3)	(1.5)	(1.4)	(1.6)
Loss on extinguishment of debt	0	27.5	0	27.5
Intercompany expense (income)	0	0	0	0
Income before income taxes	128.4	91.1	244.8	194.4
Income taxes	35.2	33.9	61.6	68
Net Income	93.2	57.2	183.2	126.4
Total assets	7,194.1	6,856.7	7,194.1	6,856.7	$ 6,984.3
AFC
Segment Information
AFC	85.1	70.1	170.2	141.3
Operating Segments | ADESA Auctions
Segment Information
ADESA Auction Services	538.3	489.2	1,066.4	987.2
Operating expenses
Cost of services (exclusive of depreciation and amortization)	307.2	278.7	613.2	569.6
Selling, general and administrative	108.3	85.2	217.1	172.5
Depreciation and amortization	31.3	26.9	62.5	54
Total operating expenses	446.8	390.8	892.8	796.1
Operating profit	91.5	98.4	173.6	191.1
Interest expense	0.6	0.1	1.2	0.3
Other (income) expense, net	(0.2)	(0.7)	(0.5)	(0.3)
Loss on extinguishment of debt		0		0
Intercompany expense (income)	7.6	11.5	19.7	23.3
Income before income taxes	83.5	87.5	153.2	167.8
Income taxes	23.5	33.8	39	62.8
Net Income	60	53.7	114.2	105
Total assets	3,171.6	3,313.8	3,171.6	3,313.8
Operating Segments | IAA
Segment Information
IAA Salvage Services	333.2	298.7	670.5	596.1
Operating expenses
Cost of services (exclusive of depreciation and amortization)	201.1	181.5	407.8	370.6
Selling, general and administrative	28.7	27.5	59.2	53.4
Depreciation and amortization	24.7	22.9	48.8	46.1
Total operating expenses	254.5	231.9	515.8	470.1
Operating profit	78.7	66.8	154.7	126
Interest expense	0	0	0	0
Other (income) expense, net	(0.8)	(0.5)	(0.8)	(0.9)
Loss on extinguishment of debt		0		0
Intercompany expense (income)	9.5	9.4	18.9	18.8
Income before income taxes	70	57.9	136.6	108.1
Income taxes	17.6	20.6	33.9	38.6
Net Income	52.4	37.3	102.7	69.5
Total assets	1,421.6	1,311.7	1,421.6	1,311.7
Operating Segments | AFC
Segment Information
AFC	85.1	70.1	170.2	141.3
Operating expenses
Cost of services (exclusive of depreciation and amortization)	23	21.5	45.3	42.7
Selling, general and administrative	7.5	7.3	15.5	15.2
Depreciation and amortization	3.5	7.8	11.3	15.6
Total operating expenses	34	36.6	72.1	73.5
Operating profit	51.1	33.5	98.1	67.8
Interest expense	14.8	10.5	28.2	20.8
Other (income) expense, net	0	0	0	0
Loss on extinguishment of debt		0		0
Intercompany expense (income)	(0.7)	(9.8)	(1.2)	(18.5)
Income before income taxes	37	32.8	71.1	65.5
Income taxes	9.3	12.5	17.7	24.3
Net Income	27.7	20.3	53.4	41.2
Total assets	2,354.1	2,140.6	2,354.1	2,140.6
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	38.3	34.6	78.4	70.9
Depreciation and amortization	7.4	6.9	14.6	13.3
Total operating expenses	45.7	41.5	93	84.2
Operating profit	(45.7)	(41.5)	(93)	(84.2)
Interest expense	33.1	29.5	60.6	59.3
Other (income) expense, net	(0.3)	(0.3)	(0.1)	(0.4)
Loss on extinguishment of debt		27.5		27.5
Intercompany expense (income)	(16.4)	(11.1)	(37.4)	(23.6)
Income before income taxes	(62.1)	(87.1)	(116.1)	(147)
Income taxes	(15.2)	(33)	(29)	(57.7)
Net Income	(46.9)	(54.1)	(87.1)	(89.3)
Total assets	$ 246.8	$ 90.6	$ 246.8	$ 90.6

Segment Information (Details 2)

Segment Information (Details 2) - USD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2018	Jun. 30, 2017	Jun. 30, 2018	Jun. 30, 2017
Geographic Information
Operating revenues	$ 956.6	$ 858	$ 1,907.1	$ 1,724.6
U.S.
Geographic Information
Operating revenues	824.5	747.5	1,653.1	1,508.3
Foreign
Geographic Information
Operating revenues	$ 132.1	$ 110.5	$ 254	$ 216.3