Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2013 | Feb. 12, 2014 | Jun. 30, 2013 |
Document Information [Line Items] | ' | ' | ' |
Document Type | '10-K | ' | ' |
Amendment Flag | 'false | ' | ' |
Document Period End Date | 31-Dec-13 | ' | ' |
Document Fiscal Period Focus | 'FY | ' | ' |
Document Fiscal Year Focus | '2013 | ' | ' |
Trading Symbol | 'AN | ' | ' |
Entity Registrant Name | 'AUTONATION, INC. | ' | ' |
Entity Central Index Key | '0000350698 | ' | ' |
Current Fiscal Year End Date | '--12-31 | ' | ' |
Entity Filer Category | 'Large Accelerated Filer | ' | ' |
Entity Common Stock, Shares Outstanding | ' | 119,068,488 | ' |
Entity Well-known Seasoned Issuer | 'Yes | ' | ' |
Entity Voluntary Filers | 'No | ' | ' |
Entity Current Reporting Status | 'Yes | ' | ' |
Entity Public Float | ' | ' | $2.70 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | ||||
CURRENT ASSETS: | ' | ' | ||
Cash and cash equivalents | $69.20 | $69.70 | ||
Receivables, net | 740.9 | 698.4 | ||
Inventory | 2,827.20 | 2,396.90 | ||
Other current assets | 192.7 | 196.1 | ||
Total Current Assets | 3,830 | 3,361.10 | ||
PROPERTY AND EQUIPMENT, NET | 2,235.30 | 2,095.10 | ||
GOODWILL, NET | 1,259.60 | [1] | 1,237.40 | [1] |
OTHER INTANGIBLE ASSETS, NET | 335.1 | 291.3 | ||
OTHER ASSETS | 254.1 | 218.1 | ||
Total Assets | 7,914.10 | 7,203 | ||
CURRENT LIABILITIES: | ' | ' | ||
Vehicle floorplan payable | 3,029 | 2,540.20 | ||
Accounts payable | 263 | 217.2 | ||
Current maturities of long-term debt | 30.1 | 29.8 | ||
Other current liabilities | 429.7 | 414.5 | ||
Total Current Liabilities | 3,751.80 | 3,201.70 | ||
LONG-TERM DEBT, NET OF CURRENT MATURITIES | 1,809.80 | 2,066.30 | ||
DEFERRED INCOME TAXES | 116.5 | 89.4 | ||
OTHER LIABILITIES | 174.3 | 157.1 | ||
COMMITMENTS AND CONTINGENCIES (Note 8) | ' | ' | ||
SHAREHOLDERS' EQUITY: | ' | ' | ||
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized; none issued | 0 | 0 | ||
Common stock, par value $0.01 per share; 1,500,000,000 shares authorized; 163,562,149 shares issued at December 31, 2013 and 2012, including shares held in treasury | 1.6 | 1.6 | ||
Additional paid-in capital | 42.8 | 26.6 | ||
Retained earnings | 3,337.90 | 2,963 | ||
Treasury stock, at cost; 42,646,753 and 42,705,580 shares held, respectively | -1,320.60 | -1,302.70 | ||
Total Shareholders' Equity | 2,061.70 | 1,688.50 | ||
Total Liabilities and Shareholders' Equity | 7,914.10 | 7,203 | ||
Trade [Member] | ' | ' | ||
CURRENT LIABILITIES: | ' | ' | ||
Vehicle floorplan payable | 2,130.10 | 1,766.30 | ||
Non-Trade [Member] | ' | ' | ||
CURRENT LIABILITIES: | ' | ' | ||
Vehicle floorplan payable | $898.90 | $773.90 | ||
[1] | Net of accumulated impairment losses of $1.47 billion ($1.25 billion after-tax) associated with our single reporting unit (prior to September 30, 2008, our reporting unit structure was comprised of a single reporting unit) and $140.0Â million ($119.0 million after-tax) associated with our Domestic reporting unit, both of which were recorded during the year ended December 31, 2008. |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Financial Position [Abstract] | ' | ' |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 163,562,149 | 163,562,149 |
Treasury stock, shares | 42,646,753 | 42,705,580 |
Consolidated_Income_Statements
Consolidated Income Statements (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Revenue: | ' | ' | ' |
TOTAL REVENUE | $17,517.60 | $15,667.50 | $13,832.30 |
Cost of Sales: | ' | ' | ' |
TOTAL COST OF SALES (excluding depreciation shown below) | 14,757.70 | 13,181.30 | 11,528.30 |
Gross Profit: | ' | ' | ' |
TOTAL GROSS PROFIT | 2,759.90 | 2,486.20 | 2,304 |
Selling, general & administrative expenses | 1,935 | 1,749.30 | 1,649.40 |
Depreciation and amortization | 95.3 | 87.3 | 83.7 |
Franchise rights impairment | 0 | 4.2 | 0 |
Other expenses (income), net | -10.7 | 0.1 | -1.1 |
OPERATING INCOME | 740.3 | 645.3 | 572 |
Non-operating income (expense) items: | ' | ' | ' |
Floorplan interest expense | -53.4 | -45.5 | -42.7 |
Other interest expense | -88.3 | -86.9 | -66 |
Loss on debt extinguishment | 0 | 0 | -2.2 |
Interest income | 0.2 | 0.3 | 0.7 |
Other income (losses), net | 5.6 | 3.6 | -0.5 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 604.4 | 516.8 | 461.3 |
Income tax provision | 228.6 | 199.5 | 177.1 |
NET INCOME FROM CONTINUING OPERATIONS | 375.8 | 317.3 | 284.2 |
Loss from discontinued operations, net of income taxes | -0.9 | -0.9 | -2.8 |
NET INCOME | 374.9 | 316.4 | 281.4 |
BASIC EARNINGS (LOSS) PER SHARE: | ' | ' | ' |
Continuing operations | $3.10 | $2.56 | $1.96 |
Discontinued operations | ($0.01) | ($0.01) | ($0.02) |
Net income | $3.09 | $2.56 | $1.94 |
Weighted average common shares outstanding | 121.3 | 123.8 | 144.8 |
DILUTED EARNINGS (LOSS) PER SHARE: | ' | ' | ' |
Continuing operations | $3.05 | $2.52 | $1.93 |
Discontinued operations | ($0.01) | ($0.01) | ($0.02) |
Net income | $3.04 | $2.52 | $1.91 |
Weighted average common shares outstanding | 123.3 | 125.8 | 147.3 |
COMMON SHARES OUTSTANDING, net of treasury stock, at period end | 120.9 | 120.9 | 135.8 |
New Vehicle [Member] | ' | ' | ' |
Revenue: | ' | ' | ' |
TOTAL REVENUE | 9,949.60 | 8,906.20 | 7,498.90 |
Cost of Sales: | ' | ' | ' |
TOTAL COST OF SALES (excluding depreciation shown below) | 9,333.20 | 8,326.70 | 6,951.20 |
Gross Profit: | ' | ' | ' |
TOTAL GROSS PROFIT | 616.4 | 579.5 | 547.7 |
Used Vehicle [Member] | ' | ' | ' |
Revenue: | ' | ' | ' |
TOTAL REVENUE | 4,127.40 | 3,714.30 | 3,512.80 |
Cost of Sales: | ' | ' | ' |
TOTAL COST OF SALES (excluding depreciation shown below) | 3,797.70 | 3,415.10 | 3,228 |
Gross Profit: | ' | ' | ' |
TOTAL GROSS PROFIT | 329.7 | 299.2 | 284.8 |
Parts and Service [Member] | ' | ' | ' |
Revenue: | ' | ' | ' |
TOTAL REVENUE | 2,597.40 | 2,399.20 | 2,293.10 |
Cost of Sales: | ' | ' | ' |
TOTAL COST OF SALES (excluding depreciation shown below) | 1,491.60 | 1,391.20 | 1,323 |
Gross Profit: | ' | ' | ' |
TOTAL GROSS PROFIT | 1,105.80 | 1,008 | 970.1 |
Finance and Insurance, Net [Member] | ' | ' | ' |
Revenue: | ' | ' | ' |
TOTAL REVENUE | 674 | 571.2 | 474.5 |
Gross Profit: | ' | ' | ' |
TOTAL GROSS PROFIT | 674 | 571.2 | 474.5 |
Other Goods and Services [Member] | ' | ' | ' |
Revenue: | ' | ' | ' |
TOTAL REVENUE | 169.2 | 76.6 | 53 |
Cost of Sales: | ' | ' | ' |
TOTAL COST OF SALES (excluding depreciation shown below) | 135.2 | 48.3 | 26.1 |
Gross Profit: | ' | ' | ' |
TOTAL GROSS PROFIT | $34 | $28.30 | $26.90 |
Consolidated_Statements_of_Sha
Consolidated Statements of Shareholders' Equity (USD $) | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
In Millions, except Share data, unless otherwise specified | |||||
BALANCE, Amount at Dec. 31, 2010 | $2,078.90 | $1.60 | $2 | $2,365.20 | ($289.90) |
BALANCE, Shares at Dec. 31, 2010 | ' | 163,562,149 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 281.4 | ' | ' | 281.4 | ' |
Repurchases of common stock | -584.9 | ' | ' | ' | -584.9 |
Stock-based compensation expense | 18.4 | ' | 18.4 | ' | ' |
Shares awarded under stock-based compensation plans, including excess income tax benefit of $10.0 in 2013, $10.6 in 2012, and $22.8 in 2011 | 100.8 | ' | -0.8 | ' | 101.6 |
BALANCE, Amount at Dec. 31, 2011 | 1,894.60 | 1.6 | 19.6 | 2,646.60 | -773.2 |
BALANCE, Shares at Dec. 31, 2011 | ' | 163,562,149 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 316.4 | ' | ' | 316.4 | ' |
Repurchases of common stock | -582.3 | ' | ' | ' | -582.3 |
Stock-based compensation expense | 18.6 | ' | 18.6 | ' | ' |
Shares awarded under stock-based compensation plans, including excess income tax benefit of $10.0 in 2013, $10.6 in 2012, and $22.8 in 2011 | 41.2 | ' | -11.6 | ' | 52.8 |
BALANCE, Amount at Dec. 31, 2012 | 1,688.50 | 1.6 | 26.6 | 2,963 | -1,302.70 |
BALANCE, Shares at Dec. 31, 2012 | ' | 163,562,149 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 374.9 | ' | ' | 374.9 | ' |
Repurchases of common stock | -55.7 | ' | ' | ' | -55.7 |
Stock-based compensation expense | 21.3 | ' | 21.3 | ' | ' |
Shares awarded under stock-based compensation plans, including excess income tax benefit of $10.0 in 2013, $10.6 in 2012, and $22.8 in 2011 | 32.7 | ' | -5.1 | ' | 37.8 |
BALANCE, Amount at Dec. 31, 2013 | $2,061.70 | $1.60 | $42.80 | $3,337.90 | ($1,320.60) |
BALANCE, Shares at Dec. 31, 2013 | ' | 163,562,149 | ' | ' | ' |
Consolidated_Statements_of_Sha1
Consolidated Statements of Shareholders' Equity (Parenthetical) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Statement of Stockholders' Equity [Abstract] | ' | ' | ' |
Shares awarded stock-based compensation plans, income tax benefit | $10 | $10.60 | $22.80 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ' | ' | ' |
Net income | $374.90 | $316.40 | $281.40 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | ' |
Loss from discontinued operations | 0.9 | 0.9 | 2.8 |
Depreciation and amortization | 95.3 | 87.3 | 83.7 |
Amortization of debt issuance costs and accretion of debt discounts | 5.7 | 5.6 | 4.3 |
Stock-based compensation expense | 21.3 | 18.6 | 18.4 |
Franchise rights impairment | 0 | 4.2 | 0 |
Non-cash impairment charges | 0.7 | 0.8 | 2.2 |
Write-off of deferred debt issuance costs | 0 | 0 | 0.4 |
Net gain on asset sales and dispositions | -9.8 | -0.3 | -3.5 |
Deferred income tax provision | 9.9 | 26.8 | 31.1 |
Excess tax benefit from stock-based awards | -10 | -10.6 | -22.8 |
Other | -6.8 | -4 | 0.3 |
(Increase) decrease, net of effects from business combinations and divestitures: | ' | ' | ' |
Receivables | -46.3 | -112 | -127.4 |
Inventory | -400.1 | -474.7 | 70.1 |
Other assets | -21.5 | -35.8 | -23.6 |
Increase (decrease), net of effects from business combinations and divestitures: | ' | ' | ' |
Vehicle floorplan payable-trade, net | 364.2 | 404 | -17.6 |
Accounts payable | 36.7 | 30.4 | 36.6 |
Other liabilities | 63.8 | 60 | 39.5 |
Net cash provided by continuing operations | 478.9 | 317.6 | 375.9 |
Net cash provided by (used in) discontinued operations | 5.2 | -1 | 0.5 |
Net cash provided by operating activities | 484.1 | 316.6 | 376.4 |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ' | ' | ' |
Proceeds from the sale of property and equipment | 3.1 | 0.6 | 3 |
Proceeds from the disposal of assets held for sale | 22.7 | 15.3 | 10.9 |
Insurance recoveries on property and equipment | 2.5 | 1 | 0.1 |
Cash used in business acquisitions, net of cash acquired | -87.9 | -141.6 | -64.2 |
Cash received from business divestitures, net of cash relinquished | 10.1 | 6.8 | 4.9 |
Proceeds from the sale of restricted investments | 0 | 0.4 | 0 |
Other | -5.6 | -2.9 | 2 |
Net cash used in continuing operations | -257.8 | -297.8 | -206.2 |
Net cash used in discontinued operations | 0 | 0 | 0 |
Net cash used in investing activities | -257.8 | -297.8 | -206.2 |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ' | ' | ' |
Repurchases of common stock | -67.3 | -575.6 | -579.8 |
Proceeds from 5.5% Senior Notes due 2020 | 0 | 350 | 0 |
Proceeds from term loan facility | 0 | 0 | 500 |
Payment of term loan facility | 0 | 0 | -533.4 |
Payment of 7% Senior Notes due 2014 | 0 | -14.7 | 0 |
Proceeds from revolving credit facilities | 815 | 1,280 | 940 |
Payment of revolving credit facilities | -1,055 | -1,235 | -625 |
Payment of debt issuance costs | 0 | -6 | -13 |
Net proceeds from vehicle floorplan payable - non-trade | 89 | 138.1 | 40.1 |
Payments of mortgage facilities | -8.7 | -8.1 | -7.7 |
Payments of capital lease and other debt obligations | -26.2 | -5 | -0.7 |
Proceeds from the exercise of stock options | 22.7 | 30.6 | 78 |
Excess tax benefit from stock-based awards | 10 | 10.6 | 22.8 |
Net cash used in continuing operations | -220.5 | -35.1 | -178.7 |
Net cash used in discontinued operations | -6.3 | -0.6 | 0 |
Net cash used in financing activities | -226.8 | -35.7 | -178.7 |
DECREASE IN CASH AND CASH EQUIVALENTS | -0.5 | -16.9 | -8.5 |
CASH AND CASH EQUIVALENTS at beginning of period | 69.7 | 86.6 | 95.1 |
CASH AND CASH EQUIVALENTS at end of period | 69.2 | 69.7 | 86.6 |
Purchases of Property and Equipment [Member] | ' | ' | ' |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of property and equipment | -160.8 | -160.6 | -149.1 |
Operating Lease Buyouts [Member] | ' | ' | ' |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ' | ' | ' |
Purchases of property and equipment | ($41.90) | ($16.80) | ($13.80) |
Description_of_Business_and_Su
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Description of Business and Summary of Significant Accounting Policies | ' | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | ||
Organization and Business | ||
AutoNation, Inc., through its subsidiaries, is the largest automotive retailer in the United States. As of December 31, 2013, we owned and operated 269 new vehicle franchises from 228 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores, which we believe include some of the most recognizable and well known in our key markets, sell 33 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 95% of the new vehicles that we sold in 2013, are manufactured by Toyota, Ford, Honda, Nissan, General Motors, Mercedes-Benz, BMW, Chrysler, and Volkswagen. | ||
We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service,” which includes automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products, which include vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. For convenience, the terms “AutoNation,” “Company,” and “we” are used to refer collectively to AutoNation, Inc. and its subsidiaries, unless otherwise required by the context. Our dealership operations are conducted by our subsidiaries. | ||
Basis of Presentation | ||
The accompanying Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries. All of our automotive dealership subsidiaries are indirectly wholly owned by the parent company, AutoNation, Inc. All significant intercompany accounts and transactions have been eliminated in the consolidation. | ||
Certain reclassifications of amounts previously reported have been made to the accompanying Consolidated Financial Statements in order to maintain consistency and comparability between periods presented. | ||
Use of Estimates | ||
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions 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 revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ materially from these estimates. We periodically evaluate estimates and assumptions used in the preparation of the financial statements and make changes on a prospective basis when adjustments are necessary. Significant estimates made by AutoNation in the accompanying Consolidated Financial Statements include certain assumptions related to goodwill, intangible assets, long-lived assets, and assets held for sale, accruals for chargebacks against revenue recognized from the sale of finance and insurance products, accruals related to self-insurance programs, certain legal proceedings, estimated tax liabilities, estimated losses from disposals of discontinued operations, and certain assumptions related to stock-based compensation. | ||
Cash and Cash Equivalents | ||
We consider all highly liquid investments with a maturity of three months or less as of the date of purchase to be cash equivalents unless the investments are legally or contractually restricted for more than three months. Under our cash management system, outstanding checks that are in excess of the cash balances at certain banks are included in Accounts Payable in the Consolidated Balance Sheets and changes in these amounts are reflected in operating cash flows in the accompanying Consolidated Statements of Cash Flows. | ||
Inventory | ||
Inventory consists primarily of new and used vehicles held for sale, valued at the lower of cost or market using the specific identification method. Cost includes acquisition, reconditioning, dealer installed accessories, and transportation expenses. Additionally, we receive floorplan interest assistance from certain manufacturers. This assistance is reflected as a reduction to the inventory cost and as a reduction to cost of sales as the vehicles are sold. At December 31, 2013 and 2012, inventory cost had been reduced by $19.7 million and $15.8 million, respectively, for interest assistance received from manufacturers. Parts, accessories, and other inventory are valued at the lower of acquisition cost (first-in, first-out) or market. See Note 3 of the Notes to Consolidated Financial Statements for more detailed information about our inventory. | ||
Property and Equipment, net | ||
Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. Leased property meeting certain criteria is capitalized and the present value of the related lease payments is recorded as a liability and included in current and/or long-term debt based on the lease term. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in Other Expenses (Income), Net in the Consolidated Statements of Income. See Note 4 of the Notes to Consolidated Financial Statements for detailed information about our property and equipment. | ||
Depreciation is provided over the estimated useful lives of the assets involved using the straight-line method. Leasehold improvements and capitalized lease assets are amortized to depreciation expense over the estimated useful life of the asset or the respective lease term used in determining lease classification, whichever is shorter. The range of estimated useful lives is as follows: | ||
Buildings and improvements | 5 to 40 years | |
Furniture, fixtures, and equipment | 3 to 12 years | |
We continually evaluate property and equipment, including leasehold improvements, to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the remaining balance should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the property and equipment in assessing whether an asset has been impaired. We measure impairment losses based upon the amount by which the carrying amount of the asset exceeds the fair value. See Note 17 of the Notes to Consolidated Financial Statements for information about our fair value measurements. | ||
During 2013 and 2012, we fully impaired certain long-lived assets held and used in continuing operations and recorded non-cash impairment charges of $0.7 million in 2013 and $0.8 million in 2012. These charges are recorded as a component of Other Expenses (Income), Net in the Consolidated Statements of Income and are reported in the “Corporate and other” category of our segment information. | ||
When property and equipment is identified as held for sale, we reclassify the held for sale assets to Other Current Assets and cease recording depreciation. Assets held for sale in both continuing operations and discontinued operations are reported in the “Corporate and other” category of our segment information. | ||
We had assets held for sale of $59.8 million at December 31, 2013, and $70.4 million at December 31, 2012, included in continuing operations. During 2013 and 2012, we recorded no impairment charges related to our continuing operations assets held for sale. | ||
We had assets held for sale of $34.5 million at December 31, 2013, and $43.2 million at December 31, 2012, included in discontinued operations. During 2013, we recorded no impairment charges related to our discontinued operations assets held for sale. During 2012, we recorded a $0.1 million non-cash impairment charge related to our discontinued operations assets held for sale to reduce the carrying value of these assets to fair value less cost to sell. This charge is recorded as a component of Loss from Discontinued Operations in the Consolidated Statements of Income. | ||
During the fourth quarter of 2013, we recognized a gain of $8.1 million ($5.0 million after-tax) related to the sale of a continuing operations held for sale property. This gain is recorded as a component of Other Expenses (Income), Net in the Consolidated Statements of Income and is reported in the “Corporate and other” category of our segment information. | ||
Goodwill and Other Intangible Assets, net | ||
Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so. | ||
Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from three to twenty-nine years. | ||
Goodwill and franchise rights assets are tested for impairment annually or more frequently when events or changes in circumstances indicate that impairment may have occurred. We completed our annual impairment tests for both goodwill and franchise rights as of April 30, 2013. Based on our qualitative assessments of potential goodwill and franchise rights impairment, we determined that it was not more likely than not that the fair values of our reporting units or the fair values of our franchise rights were less than their carrying amounts and we recorded no goodwill or franchise rights impairment charges during 2013. | ||
We completed our annual impairment tests for both goodwill and franchise rights as of April 30, 2012. Based on our qualitative assessment of potential goodwill impairment, we determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts and we recorded no goodwill impairment charges during 2012. We recorded $4.2 million ($2.6 million after-tax) of non-cash impairment charges related to rights under a Premium Luxury store’s franchise agreement as a result of the annual franchise impairment test during 2012. The non-cash impairment charge was recorded to reduce the carrying value of the store’s franchise agreement to its estimated fair value, and is classified as Franchise Rights Impairment in the accompanying Consolidated Statements of Income. | ||
We completed our annual impairment tests for both goodwill and franchise rights as of April 30, 2011, and no impairment charges resulted from the required impairment tests. | ||
See Note 5 of the Notes to Consolidated Financial Statements for more information about our goodwill and other intangible assets. | ||
Other Current Assets | ||
Other current assets consist of various items, including, among other items, property and equipment held for sale in continuing operations and discontinued operations, current deferred tax assets, prepaid expenses, and the current portions of notes receivable and debt issuance costs. | ||
Other Assets | ||
Other assets consist of various items, including, among other items, service loaner and rental vehicle inventory, net, the cash surrender value of corporate-owned life insurance held in a Rabbi Trust for deferred compensation plan participants, and the long-term portions of notes receivable and debt issuance costs. Debt issuance costs are amortized to Other Interest Expense in the accompanying Consolidated Statements of Income using the effective interest method through maturity. | ||
Other Current Liabilities | ||
Other current liabilities consist of various items payable within one year including, among other items, accruals for payroll and benefits, sales taxes, deferred revenue, the current portions of finance and insurance chargeback liabilities and self-insurance reserves, accrued expenses, and customer deposits. | ||
Other Liabilities | ||
Other liabilities consist of various items payable beyond one year including, among other items, the long-term portions of finance and insurance chargeback liabilities, self-insurance reserves, and deferred compensation obligations. | ||
Employee Savings Plans | ||
We offer a 401(k) plan to all of our employees and provide a matching contribution to certain employees that participate in the plan. We provided a matching contribution of $5.2 million in 2013, $3.5 million in 2012, and $2.1 million in 2011. Employer matching contributions are subject to a 3-year graded vesting period for employees hired subsequent to January 1, 2011, and are fully vested immediately upon contribution for employees hired prior to January 1, 2011. | ||
We offer a deferred compensation plan (the “Plan”) to provide certain employees and non-employee directors with the opportunity to accumulate assets for retirement on a tax-deferred basis. Participants in the Plan are allowed to defer a portion of their compensation and are fully vested in their respective deferrals and earnings. Participants may choose from a variety of investment options, which determine their earnings credits. We provided a matching contribution to employee participants in the Plan of $0.5 million for 2013, $0.5 million for 2012, and $0.6 million in 2011. One-third of the matching contribution is vested and credited to participants on the first business day of the subsequent calendar year, and an additional one-third vests and is credited on each of the first and second anniversaries of such date. We may also make discretionary contributions, which vest three years after the effective date of the discretionary contribution. Participants eligible for a matching contribution under the Plan are not eligible for a matching contribution in our 401(k) plan. The balances due to participants in the Plan were $51.7 million as of December 31, 2013, and $40.6 million as of December 31, 2012, and are included in Other Current Liabilities and Other Liabilities in the accompanying Consolidated Balance Sheets. | ||
Stock-Based Compensation | ||
Stock options granted under all plans are non-qualified. Upon exercise, shares of common stock are issued from our treasury stock. We use the Black-Scholes valuation model to determine compensation expense associated with our stock options. Restricted stock awards are considered nonvested share awards as defined under generally accepted accounting principles and are issued from our treasury stock. Compensation cost for restricted stock awards is based on the closing price of our common stock on the date of grant. Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost for stock-based awards is recognized on a straight-line basis over the shorter of the stated vesting period or the period until employees become retirement-eligible. | ||
See Note 10 of the Notes to Consolidated Financial Statements for more information about our stock-based compensation arrangements. | ||
Revenue Recognition | ||
Revenue consists of the sales of new and used vehicles, sales of parts and automotive services, commissions from finance and insurance products, and sales of other products. We recognize revenue (which excludes sales taxes) in the period in which products are sold or services are provided. The automotive services we provide include, but are not limited to, customer-paid repairs and maintenance, as well as repairs and maintenance under manufacturer warranties and extended service contracts. We recognize vehicle and finance and insurance revenue when a sales contract has been executed, the vehicle has been delivered, and payment has been received or financing has been arranged. Revenue on finance and insurance products represents commissions earned by us for: (i) loans and leases placed with financial institutions in connection with customer vehicle purchases financed, (ii) vehicle service contracts sold, and (iii) other protection products sold. | ||
We sell and receive a commission, which is recognized upon sale, on the following types of products: extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products. The products we offer include products that are sold and administered by independent third parties, including the vehicle manufacturers’ captive finance subsidiaries. Pursuant to our arrangements with these third-party providers, we primarily sell the products on a straight commission basis; however, we may sell the product, recognize commission, and participate in future profit pursuant to retrospective commission arrangements, which is recognized as earned. Certain commissions earned from the sales of finance and insurance products are subject to chargeback should the contracts be terminated prior to their expirations. An estimated liability for chargebacks against revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized. Our estimated liability for chargebacks is based primarily on our historical chargeback experience, and is influenced by the volume of vehicle sales in recent years and increases or decreases in early termination rates resulting from cancellation of vehicle service contracts and other protection products, defaults, refinancings and payoffs before maturity, and other factors. Chargeback liabilities were $67.6 million at December 31, 2013, and $56.0 million at December 31, 2012. See Note 19 of the Notes to Consolidated Financial Statements for more information regarding chargeback liabilities. | ||
Insurance | ||
Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, employee medical benefits, automobile, and workers’ compensation. Costs in excess of this retained risk per claim may be insured under various contracts with third-party insurance carriers. We review our claim and loss history on a periodic basis to assist in assessing our future liability. The ultimate costs of these retained insurance risks are estimated by management and by third-party actuarial evaluation of historical claims experience, adjusted for current trends and changes in claims-handling procedures. See Note 6 of the Notes to Consolidated Financial Statements for more information on our self-insurance reserves. | ||
Manufacturer Incentives and Other Rebates | ||
We receive various incentives from manufacturers based on achieving certain objectives, such as specified sales volume targets, as well as other objectives, including maintaining standards of a particular vehicle brand, which may include but are not limited to facility image and design requirements, customer satisfaction survey results, and training standards, among others. These incentives are typically based upon units purchased or sold. These manufacturer incentives are recognized as a reduction of new vehicle cost of sales when earned, generally at the time the related vehicles are sold or upon attainment of the particular program goals, whichever is later. | ||
We also receive manufacturer rebates and assistance for holdbacks, floorplan interest, and non-reimbursement-based advertising expenses (described below), which are reflected as a reduction in the carrying value of each vehicle purchased by us. We recognize holdbacks, floorplan interest assistance, non-reimbursement-based advertising rebates, cash incentives, and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold. | ||
Advertising | ||
We generally expense the cost of advertising as incurred, net of earned manufacturer reimbursements for specific advertising costs and other discounts. Advertising expense, net of manufacturer advertising reimbursements, was $166.4 million in 2013, $135.7 million in 2012, and $130.2 million in 2011, and is reflected as a component of Selling, General, and Administrative Expenses in the accompanying Consolidated Statements of Income. | ||
Manufacturer advertising rebates that are reimbursements of costs associated with specific advertising expenses are earned in accordance with the respective manufacturers’ reimbursement-based advertising assistance programs, which is typically after we have incurred the corresponding advertising expenses, and are reflected as a reduction of advertising expense. Manufacturer advertising reimbursements classified as an offset to advertising expenses were $42.4 million in 2013, $38.3 million in 2012, and $28.2 million in 2011. All other non-reimbursement-based manufacturer advertising rebates that are not associated with specific advertising expenses are recorded as a reduction of inventory and recognized as a reduction of new vehicle cost of sales in the period the related vehicle is sold. | ||
Parts and Service Internal Profit | ||
Our parts and service departments provide reconditioning repair work for the majority of used vehicles acquired by our used vehicle departments and minor preparatory work for new vehicles acquired by our new vehicle departments. The parts and service departments charge the new and used vehicle departments as if they were third parties in order to account for total activity performed by that department. Revenues and costs of sales associated with the internal work performed by our parts and service departments are reflected in our parts and service results in our Consolidated Statements of Income. New and used vehicle revenues and costs of sales are reduced by the amount of the intracompany charge. As a result, the revenues and costs of sales associated with the internal work performed by our parts and service departments are eliminated in consolidation. We also maintain a reserve for internal profit on vehicles that have not been sold. | ||
Income Taxes | ||
We file a consolidated federal income tax return. Deferred income taxes have been provided for temporary differences between the recognition of revenue and expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the financial statements. See Note 11 of the Notes to Consolidated Financial Statements for more detailed information related to income taxes. | ||
Taxes Assessed by Governmental Authorities | ||
Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue in our Consolidated Financial Statements. | ||
Earnings (Loss) Per Share | ||
Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards which contain rights to non-forfeitable dividends. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding adjusted for the dilutive effect of stock options. See Note 12 of the Notes to Consolidated Financial Statements for more information on the computation of earnings (loss) per share. | ||
Recent Accounting Pronouncements | ||
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss, a Similar Tax Loss, or a Tax Credit Carryforward Exists | ||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update to reduce the diversity in practice regarding the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this accounting standard update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not expect the adoption of this accounting standard update to have a material impact on our consolidated financial position, results of operations, or cash flows. | ||
Testing Indefinite-Lived Intangible Assets for Impairment | ||
In July 2012, the FASB issued an accounting standard update that amends the accounting guidance on testing indefinite-lived intangible assets for impairment. The amendments in this accounting standard update are intended to reduce complexity and costs by allowing an entity the option to make a qualitative evaluation about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. The amendments also enhance the consistency of impairment testing guidance among long-lived asset categories by permitting an entity to assess qualitative factors to determine whether it is necessary to calculate the asset’s fair value when testing an indefinite-lived intangible asset for impairment, which is equivalent to the impairment testing requirements for other long-lived assets. The amendments in this accounting standard update are effective for interim and annual impairment tests performed for fiscal years beginning after September 15, 2012. We test indefinite-lived intangible assets for impairment annually on April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred. The adoption of this accounting standard update did not have an impact on our consolidated financial position, results of operations, or cash flows. |
Receivables_Net
Receivables, Net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ' | |||||||
Receivables, Net | ' | |||||||
RECEIVABLES, NET | ||||||||
The components of receivables, net of allowance for doubtful accounts, at December 31 are as follows: | ||||||||
2013 | 2012 | |||||||
Trade receivables | $ | 110.9 | $ | 97.6 | ||||
Manufacturer receivables | 172.9 | 159.9 | ||||||
Other | 36.9 | 39.4 | ||||||
320.7 | 296.9 | |||||||
Less: Allowances | (4.0 | ) | (3.4 | ) | ||||
316.7 | 293.5 | |||||||
Contracts-in-transit and vehicle receivables | 424.2 | 404.9 | ||||||
Receivables, net | $ | 740.9 | $ | 698.4 | ||||
Trade receivables represent amounts due for parts and services that have been delivered or sold, excluding amounts due from manufacturers, as well receivables from finance organizations for commissions on the sale of financing products. Manufacturer receivables represent receivables from manufacturers including amounts due for holdbacks, rebates, incentives, floorplan assistance, and warranty claims. Contracts-in-transit and vehicle receivables primarily represent receivables from financial institutions for the portion of the vehicle sales price financed by our customers. | ||||||||
We evaluate our receivables for collectability based on the age of receivables and past collection experience. |
Inventory_and_Vehicle_Floorpla
Inventory and Vehicle Floorplan Payable | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory And Vehicle Floorplan Payable [Abstract] | ' | |||||||
Inventory And Vehicle Floorplan Payable | ' | |||||||
INVENTORY AND VEHICLE FLOORPLAN PAYABLE | ||||||||
The components of inventory at December 31 are as follows: | ||||||||
2013 | 2012 | |||||||
New vehicles | $ | 2,330.80 | $ | 1,938.00 | ||||
Used vehicles | 346.5 | 318.7 | ||||||
Parts, accessories, and other | 149.9 | 140.2 | ||||||
Inventory | $ | 2,827.20 | $ | 2,396.90 | ||||
The components of vehicle floorplan payables at December 31 are as follows: | ||||||||
2013 | 2012 | |||||||
Vehicle floorplan payable - trade | $ | 2,130.10 | $ | 1,766.30 | ||||
Vehicle floorplan payable - non-trade | 898.9 | 773.9 | ||||||
Vehicle floorplan payable | $ | 3,029.00 | $ | 2,540.20 | ||||
Vehicle floorplan payable-trade reflects amounts borrowed to finance the purchase of specific new vehicle inventories with the corresponding manufacturers’ captive finance subsidiaries (“trade lenders”). Vehicle floorplan payable-non-trade represents amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with non-trade lenders, as well as amounts borrowed under our secured used floorplan facilities, which are primarily collateralized by used vehicle inventories and related receivables. Changes in vehicle floorplan payable-trade are reported as operating cash flows and changes in vehicle floorplan payable-non-trade are reported as financing cash flows in the accompanying Consolidated Statements of Cash Flows. | ||||||||
Our inventory costs are generally reduced by manufacturer holdbacks, incentives, and floorplan assistance, while the related vehicle floorplan payables are reflective of the gross cost of the vehicle. The vehicle floorplan payables, as shown in the above table, will generally also be higher than the inventory cost due to the timing of the sale of a vehicle and payment of the related liability. | ||||||||
Vehicle floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related vehicles are sold. Our manufacturer agreements generally require that the manufacturer have the ability to draft against the new vehicle floorplan facilities so the lender directly funds the manufacturer for the purchase of new vehicle inventory. Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related receivables. | ||||||||
Our used vehicle floorplan facilities utilize LIBOR-based interest rates, which averaged 1.8% during 2013 and 2.0% during 2012. At December 31, 2013, the aggregate capacity under our floorplan credit agreements with various lenders to finance a portion of our used vehicle inventory was $275.0 million, of which $177.3 million had been borrowed. The remaining borrowing capacity of $97.7 million was limited to $50.0 million based on the eligible used vehicle inventory that could have been pledged as collateral. | ||||||||
Our new vehicle floorplan facilities utilize LIBOR-based interest rates, which averaged 1.9% during 2013 and 2.1% during 2012. At December 31, 2013, the aggregate capacity under our floorplan credit agreements with various lenders to finance our new vehicle inventory was approximately $3.3 billion, of which $2.9 billion had been borrowed. |
Property_and_Equipment_Net
Property and Equipment, Net | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment, Net | ' | |||||||
PROPERTY AND EQUIPMENT, NET | ||||||||
A summary of property and equipment, net, at December 31 is as follows: | ||||||||
2013 | 2012 | |||||||
Land | $ | 997.1 | $ | 924.6 | ||||
Buildings and improvements | 1,552.60 | 1,451.50 | ||||||
Furniture, fixtures, and equipment | 569.3 | 545.8 | ||||||
3,119.00 | 2,921.90 | |||||||
Less: accumulated depreciation and amortization | (883.7 | ) | (826.8 | ) | ||||
Property and equipment, net | $ | 2,235.30 | $ | 2,095.10 | ||||
We capitalized interest in connection with various construction projects to upgrade or remodel our facilities of $0.7 million in 2013, $0.6 million in 2012, and $1.0 million in 2011. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets, Net | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Goodwill And Intangible Assets | ' | |||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET | ||||||||||||||||||||
Goodwill and intangible assets, net, at December 31 consist of the following: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Goodwill | $ | 1,259.60 | $ | 1,237.40 | ||||||||||||||||
Franchise rights - indefinite-lived | $ | 329.3 | $ | 285.7 | ||||||||||||||||
Other intangible assets | 11.1 | 9.9 | ||||||||||||||||||
340.4 | 295.6 | |||||||||||||||||||
Less: accumulated amortization | (5.3 | ) | (4.3 | ) | ||||||||||||||||
Intangible assets, net | $ | 335.1 | $ | 291.3 | ||||||||||||||||
Goodwill | ||||||||||||||||||||
We test goodwill of our Domestic, Import, and Premium Luxury reporting units for impairment annually on April 30 or more frequently when events or changes in circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. | ||||||||||||||||||||
Under accounting standards, an entity is permitted to first make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it is necessary to calculate the fair value of a reporting unit under the quantitative two-step goodwill impairment test. We completed qualitative annual assessments of any potential goodwill impairment as of April 30, 2013 and 2012. Based on our qualitative assessments, we determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts and we were therefore not required to perform the two-step goodwill impairment test for any of our reporting units. | ||||||||||||||||||||
We performed a quantitative annual impairment test as of April 30, 2011, and no goodwill impairment charges resulted from the required goodwill impairment test. | ||||||||||||||||||||
The quantitative goodwill impairment test is a two-step approach. The first step of the quantitative goodwill impairment test requires a determination of whether the fair value of a reporting unit is less than its carrying value. If the fair value of the reporting unit is less than the carrying value, the second step is required, which involves an analysis reflecting the allocation of the fair value determined in the first step (as if it was the purchase price in a business combination). This process may result in the determination of a new amount of goodwill. If the calculated fair value of the goodwill resulting from this allocation is lower than the carrying value of the goodwill in the reporting unit, the difference is reflected as a non-cash impairment loss. The purpose of the second step is only to determine the amount of goodwill that should be recorded on the balance sheet. The recorded amounts of other items on the balance sheet are not adjusted. | ||||||||||||||||||||
In a quantitative impairment test, we estimate the fair value of our reporting units using an “income” valuation approach, which discounts projected free cash flows of the reporting unit at a computed weighted average cost of capital as the discount rate. The income valuation approach requires the use of significant estimates and assumptions, which include revenue growth rates and future operating margins used to calculate projected future cash flows, weighted average costs of capital, and future economic and market conditions. In connection with this process, we also reconcile the estimated aggregate fair values of our reporting units to our market capitalization, including consideration of a control premium that represents the estimated amount an investor would pay for our equity securities to obtain a controlling interest. We believe that this reconciliation process is consistent with a market participant perspective. We base our cash flow forecasts on our knowledge of the automotive industry, our recent performance, our expectations of our future performance, and other assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We also make certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of our reporting units when performing a quantitative impairment test. | ||||||||||||||||||||
Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||
Domestic | Import | Premium | Corporate | Consolidated | ||||||||||||||||
Luxury | and other | |||||||||||||||||||
Goodwill at January 1, 2012 (1) | $ | 156.4 | $ | 518.4 | $ | 497.4 | $ | — | $ | 1,172.20 | ||||||||||
Acquisitions and other adjustments | 8.8 | 15.8 | 40.6 | — | 65.2 | |||||||||||||||
Goodwill at December 31, 2012 (1) | 165.2 | 534.2 | 538 | — | 1,237.40 | |||||||||||||||
Acquisitions and other adjustments | — | 21.6 | 0.6 | — | 22.2 | |||||||||||||||
Goodwill at December 31, 2013 (1) | $ | 165.2 | $ | 555.8 | $ | 538.6 | $ | — | $ | 1,259.60 | ||||||||||
(1) | Net of accumulated impairment losses of $1.47 billion ($1.25 billion after-tax) associated with our single reporting unit (prior to September 30, 2008, our reporting unit structure was comprised of a single reporting unit) and $140.0 million ($119.0 million after-tax) associated with our Domestic reporting unit, both of which were recorded during the year ended December 31, 2008. | |||||||||||||||||||
Intangible Assets | ||||||||||||||||||||
Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives and are tested at least annually on April 30 for impairment. As discussed in Note 1 above, the FASB issued an accounting standard update that permits an entity to first make a qualitative evaluation about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it is necessary to perform a quantitative impairment test. | ||||||||||||||||||||
We completed our qualitative assessment of any potential franchise rights impairment as of April 30, 2013. Based on our qualitative assessment, we determined that it was not more likely than not that the fair values of our franchise rights were less than their carrying amounts and we were therefore not required to perform a quantitative impairment test. | ||||||||||||||||||||
As of December 31, 2013, we had $329.3 million of franchise rights recorded on our Consolidated Balance Sheet, of which $22.8 million was related to Domestic stores, $122.5 million was related to Import stores, and $184.0 million was related to Premium Luxury stores. | ||||||||||||||||||||
We performed a quantitative annual impairment test as of April 30, 2012, and we recorded a $4.2 million ($2.6 million after-tax) non-cash impairment charge related to rights under a Premium Luxury store’s franchise agreement. This non-cash impairment charge was recorded to reduce the carrying value of the store’s franchise agreement to its estimated fair value. The decline in the fair value of rights under this store’s franchise agreement reflects the underperformance relative to expectations of this store since our acquisition of it, as well as our expectations for the store’s future prospects. These factors resulted in a reduction in forecasted cash flows and growth rates used to estimate fair value. This non-cash impairment charge is classified as Franchise Rights Impairment in the accompanying Consolidated Statements of Income. | ||||||||||||||||||||
We performed a quantitative annual impairment test as of April 30, 2011, and no franchise rights impairment charges resulted from the required impairment test. | ||||||||||||||||||||
The quantitative impairment test for intangibles with indefinite lives requires the comparison of estimated fair value to its carrying value by store. Fair values of rights under franchise agreements are estimated using Level 3 inputs by discounting expected future cash flows of the store. The forecasted cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates, margins, working capital requirements, capital expenditures, and cost of capital, for which we utilize certain market participant-based assumptions, using third-party industry projections, economic projections, and other marketplace data we believe to be reasonable. |
Insurance
Insurance | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Insurance [Abstract] | ' | |||||||
Insurance | ' | |||||||
INSURANCE | ||||||||
At December 31, 2013 and 2012, current and long-term insurance reserves were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows: | ||||||||
2013 | 2012 | |||||||
Insurance reserves - current portion | $ | 24.1 | $ | 22.6 | ||||
Insurance reserves - long-term portion | 42.2 | 38.9 | ||||||
Total insurance reserves | $ | 66.3 | $ | 61.5 | ||||
LongTerm_Debt
Long-Term Debt | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
LONG-TERM DEBT | ||||||||
Long-term debt at December 31 consisted of the following: | ||||||||
2013 | 2012 | |||||||
6.75% Senior Notes due 2018 | $ | 396.3 | $ | 395.6 | ||||
5.5% Senior Notes due 2020 | 350 | 350 | ||||||
Term loan facility due 2016 | 500 | 500 | ||||||
Revolving credit facility due 2016 | 300 | 540 | ||||||
Mortgage facility(1) | 194.7 | 203.3 | ||||||
Capital leases and other debt | 98.9 | 107.2 | ||||||
1,839.90 | 2,096.10 | |||||||
Less: current maturities | (30.1 | ) | (29.8 | ) | ||||
Long-term debt, net of current maturities | $ | 1,809.80 | $ | 2,066.30 | ||||
(1) | The mortgage facility requires monthly principal and interest payments of $1.7 million based on a fixed amortization schedule with a balloon payment of $155.4 million due November 2017. | |||||||
At December 31, 2013, aggregate maturities of non-vehicle long-term debt were as follows: | ||||||||
Year Ending December 31: | ||||||||
2014 | $ | 30.1 | ||||||
2015 | 24.8 | |||||||
2016 | 812.5 | |||||||
2017 | 174.6 | |||||||
2018 | 398.7 | |||||||
Thereafter | 399.2 | |||||||
$ | 1,839.90 | |||||||
Senior Unsecured Notes and Credit Agreement | ||||||||
At December 31, 2013, we had outstanding $396.3 million of 6.75% Senior Notes due 2018, net of debt discount. Interest is payable on April 15 and October 15 of each year. These notes will mature on April 15, 2018. | ||||||||
At December 31, 2013, we had outstanding $350.0 million aggregate principal amount of 5.5% Senior Notes due 2020. Interest is payable on February 1 and August 1 of each year. At any time prior to February 1, 2015, we may redeem up to 35% of the principal amount of these notes with the net cash proceeds of one or more public equity offerings of our common stock at 105.5% of principal. These notes will mature on February 1, 2020. | ||||||||
Under our credit agreement, we have a $500.0 million term loan facility and a $1.2 billion revolving credit facility. The term loan and revolving credit facilities under the credit agreement mature December 7, 2016. As of December 31, 2013, we had borrowings outstanding of $300.0 million under our revolving credit facility. We have a $200.0 million letter of credit sublimit as part of our revolving credit facility. The amount available to be borrowed under the revolving credit facility is reduced on a dollar-for-dollar basis by the cumulative amount of any outstanding letters of credit, which was $45.6 million at December 31, 2013, leaving an additional borrowing capacity under the revolving credit facility of $854.4 million at December 31, 2013. | ||||||||
During 2011, we expensed $2.2 million pre-tax related to a debt refinancing transaction. These expenses included $0.4 million for the write-off of previously deferred debt issuance costs and are recorded in Loss on Debt Extinguishment in the accompanying Consolidated Statements of Income. | ||||||||
Our term loan facility provides for various interest rates generally at LIBOR plus 1.75%. Our revolving credit facility provides for a commitment fee on undrawn amounts of 0.30% and various interest rates on borrowings generally at LIBOR plus 1.75%. | ||||||||
The credit spread charged for both our term loan facility and revolving credit facility is affected by our leverage ratio. For instance, an increase in our leverage ratio from greater than or equal to 2.0x but less than 3.25x to greater than or equal to 3.25x would result in a 25 basis point increase in the credit spread under both our term loan facility and revolving credit facility. | ||||||||
Our senior unsecured notes and borrowings under our credit agreement are guaranteed by substantially all of our subsidiaries. Within the meaning of Regulation S-X, Rule 3-10, AutoNation, Inc. (the parent company) has no independent assets or operations, the guarantees of its subsidiaries are full and unconditional and joint and several, and any subsidiaries other than the guarantor subsidiaries are minor. | ||||||||
Other Debt | ||||||||
At December 31, 2013, we had $194.7 million outstanding under a mortgage facility with an automotive manufacturer’s captive finance subsidiary that matures on November 30, 2017. The mortgage facility utilizes a fixed interest rate of 5.864% and is secured by 10-year mortgages on certain of our store properties. The mortgage facility requires monthly principal and interest payments of $1.7 million based on a fixed amortization schedule with a balloon payment of $155.4 million due November 2017. Repayment of the mortgage facility is subject to a prepayment penalty. | ||||||||
At December 31, 2013, we had capital lease and other debt obligations of $98.9 million, which are due at various dates through 2033. See Note 8 of the Notes to Consolidated Financial Statements for more information related to capital lease obligations. | ||||||||
Restrictions and Covenants | ||||||||
Our credit agreement, the indentures for our 6.75% Senior Notes due 2018 and 5.5% Senior Notes due 2020, our vehicle floorplan facilities, and our mortgage facility contain numerous customary financial and operating covenants that place significant restrictions on us, including our ability to incur additional indebtedness or prepay existing indebtedness, to create liens or other encumbrances, to sell (or otherwise dispose of) assets, and to merge or consolidate with other entities. | ||||||||
Under our credit agreement we are required to remain in compliance with a maximum leverage ratio and maximum capitalization ratio. The leverage ratio is a contractually defined amount principally reflecting non-vehicle debt divided by a contractually defined measure of earnings with certain adjustments. The capitalization ratio is a contractually defined amount principally reflecting vehicle floorplan payable and non-vehicle debt divided by our total capitalization including vehicle floorplan payable. Under the credit agreement, the maximum leverage ratio is 3.75x and the maximum capitalization ratio is 65.0%. In calculating our leverage and capitalization ratios, we are not required to include letters of credit in the definition of debt (except to the extent of letters of credit in excess of $150.0 million). In addition, in calculating our capitalization ratio, we are permitted to add back to shareholders’ equity all goodwill, franchise rights, and long-lived asset impairment charges subsequent to September 30, 2011 plus $1.52 billion. | ||||||||
The indentures for our 6.75% Senior Notes due 2018 and 5.5% Senior Notes due 2020 contain certain limited covenants, including limitations on liens and sale and leaseback transactions. Our mortgage facility contains covenants regarding maximum cash flow leverage and minimum interest coverage. | ||||||||
Our failure to comply with the covenants contained in our debt agreements could permit acceleration of all of our indebtedness. Our debt agreements have cross-default provisions that trigger a default in the event of an uncured default under other material indebtedness of AutoNation. | ||||||||
Under the terms of our credit agreement, at December 31, 2013, our leverage ratio and capitalization ratio were as follows: | ||||||||
December 31, 2013 | ||||||||
Requirement | Actual | |||||||
Leverage ratio | ≤ 3.75x | 2.25x | ||||||
Capitalization ratio | ≤ 65.0% | 57.60% | ||||||
Both the leverage ratio and the capitalization ratio limit our ability to incur additional non-vehicle debt. The capitalization ratio also limits our ability to incur additional vehicle floorplan indebtedness. | ||||||||
In the event of a downgrade in our credit ratings, none of the covenants described above would be impacted. In addition, availability under our credit agreement described above would not be impacted should a downgrade in the senior unsecured debt credit ratings occur. |
Commitments_and_Contingencies
Commitments and Contingencies | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Commitments And Contingencies | ' | |||||||
COMMITMENTS AND CONTINGENCIES | ||||||||
Legal Proceedings | ||||||||
We are involved, and will continue to be involved, in numerous legal proceedings arising out of the conduct of our business, including litigation with customers, wage and hour and other employment-related lawsuits, class actions, purported class actions, and actions brought by governmental authorities. We establish accruals for specific legal proceedings when it is considered probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Our accruals for loss contingencies are reviewed quarterly and adjusted as additional information becomes available. We disclose the amount accrued if material or if such disclosure is necessary for our financial statements to not be misleading. If a loss is not both probable and reasonably estimable, or if an exposure to loss exists in excess of the amount accrued, we assess whether there is at least a reasonable possibility that a loss, or additional loss, may have been incurred. If there is a reasonable possibility that a loss, or additional loss, may have been incurred, we disclose the estimate of the possible loss or range of loss if it is material or a statement that such an estimate cannot be made. Our evaluation of whether a loss is reasonably possible or probable is based on our assessment and consultation with legal counsel regarding the ultimate outcome of the matter. | ||||||||
For the years ended December 31, 2013 and 2012, we believe we have adequately accrued for the potential impact of loss contingencies that are probable and reasonably estimable, and there was no indication of a reasonable possibility that a material loss, or additional material loss, may have been incurred. We do not believe that the ultimate resolution of any of these matters will have a material adverse effect on our results of operations, financial condition, or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our financial condition, results of operations, and cash flows. | ||||||||
Lease Commitments | ||||||||
We lease real property, equipment, and software under various operating leases, most of which have terms from one to twenty years. We account for leases under related accounting guidance and other authoritative literature. | ||||||||
Expenses under real property, equipment, and software leases were $47.6 million in 2013, $47.6 million in 2012, and $53.9 million in 2011. The leases require payment of real estate taxes, insurance, and maintenance in addition to rent. Most of the leases contain renewal options, rent abatements, and rent escalation clauses. Lease expense is recognized on a straight-line basis over the term of the lease, including any option periods, as appropriate. The same lease term is used for lease classification, the amortization period of related leasehold improvements, and the estimation of future lease commitments. | ||||||||
Future minimum lease obligations under non-cancelable real property, equipment, and software leases with initial terms in excess of one year at December 31, 2013, are as follows: | ||||||||
Noncancelable Lease Commitments | Capital (1) | Operating(1) (2) | ||||||
2014 | $ | 24.5 | $ | 42.2 | ||||
2015 | 17.9 | 38 | ||||||
2016 | 4.7 | 36.6 | ||||||
2017 | 11.6 | 34 | ||||||
2018 | 4.1 | 31.7 | ||||||
Thereafter | 39.6 | 241.8 | ||||||
Total minimum lease payments | $ | 102.4 | $ | 424.3 | ||||
Less: Amounts representing interest | (21.1 | ) | ||||||
$ | 81.3 | |||||||
(1) | Amounts for capital and operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. In 2013, these charges totaled approximately $22 million. | |||||||
(2) | Future minimum operating lease payments do not reflect future minimum sublease income of $4.8 million. | |||||||
Other Matters | ||||||||
AutoNation, acting through its subsidiaries, is the lessee under many real estate leases that provide for the use by our subsidiaries of their respective dealership premises. Pursuant to these leases, our subsidiaries generally agree to indemnify the lessor and other related parties from certain liabilities arising as a result of the use of the leased premises, including environmental liabilities, or a breach of the lease by the lessee. Additionally, from time to time, we enter into agreements with third parties in connection with the sale of assets or businesses in which we agree to indemnify the purchaser or related parties from certain liabilities or costs arising in connection with the assets or business. Also, in the ordinary course of business in connection with purchases or sales of goods and services, we enter into agreements that may contain indemnification provisions. In the event that an indemnification claim is asserted, our liability would be limited by the terms of the applicable agreement. | ||||||||
From time to time, primarily in connection with dispositions of automotive stores, our subsidiaries assign or sublet to the dealership purchaser the subsidiaries’ interests in any real property leases associated with such stores. In general, our subsidiaries retain responsibility for the performance of certain obligations under such leases to the extent that the assignee or sublessee does not perform, whether such performance is required prior to or following the assignment or subletting of the lease. Additionally, AutoNation and its subsidiaries generally remain subject to the terms of any guarantees made by us in connection with such leases. We generally have indemnification rights against the assignee or sublessee in the event of non-performance under these leases, as well as certain defenses. We presently have no reason to believe that we or our subsidiaries will be called on to perform under any such remaining assigned leases or subleases. We estimate that lessee rental payment obligations during the remaining terms of these leases with expirations ranging from 2014 to 2034 are approximately $39 million at December 31, 2013. Our exposure under these leases is difficult to estimate and there can be no assurance that any performance of AutoNation or its subsidiaries required under these leases would not have a material adverse effect on our business, financial condition, and cash flows. | ||||||||
At December 31, 2013, surety bonds, letters of credit, and cash deposits totaled $91.3 million, of which $45.6 million represented letters of credit. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance. We do not currently provide cash collateral for outstanding letters of credit. | ||||||||
In the ordinary course of business, we are subject to numerous laws and regulations, including automotive, environmental, health and safety, and other laws and regulations. We do not anticipate that the costs of such compliance will have a material adverse effect on our business, consolidated results of operations, cash flows, or financial condition, although such outcome is possible given the nature of our operations and the extensive legal and regulatory framework applicable to our business. | ||||||||
The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), which was signed into law on July 21, 2010, established the Consumer Financial Protection Bureau (the “CFPB”), a new independent federal agency funded by the United States Federal Reserve with broad regulatory powers and limited oversight from the United States Congress. Although automotive dealers are generally excluded, the Dodd-Frank Act could lead to additional, indirect regulation of automotive dealers, in particular, their sale and marketing of finance and insurance products, through its regulation of automotive finance companies and other financial institutions. The Dodd-Frank Act also provided the Federal Trade Commission (the “FTC”) with new and expanded authority regarding automotive dealers, and the FTC has recently announced an enforcement initiative relating to the advertising practices of automotive dealers. | ||||||||
Additionally, the Patient Protection and Affordable Care Act, which was signed into law on March 23, 2010, is expected to increase our annual employee health care costs that we fund, with the most significant increases commencing in 2015, and significantly increase our cost of compliance and compliance risk related to offering health care benefits. | ||||||||
Further, we expect that new laws and regulations, particularly at the federal level, in other areas may be enacted, which could also materially adversely impact our business. We do not have any material known environmental commitments or contingencies. |
Shareholders_Equity
Shareholders' Equity | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||
Shareholders' Equity | ' | |||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||
A summary of shares repurchased under our share repurchase program authorized by our Board of Directors follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Shares repurchased | 1.1 | 16.6 | 17.1 | |||||||||
Aggregate purchase price | $ | 53.5 | $ | 580.6 | $ | 583.4 | ||||||
Average purchase price per share | $ | 47.37 | $ | 34.89 | $ | 34.14 | ||||||
In January 2014, our Board of Directors authorized an additional $250 million under our existing share repurchase program. From January 1, 2014 through February 12, 2014 we repurchased an additional 2.4 million shares for an aggregate purchase price of $115.7 million (average purchase price per share of $47.92). As of February 12, 2014, $400.0 million remained available for share repurchases under the program. | ||||||||||||
We have 5.0 million authorized shares of preferred stock, par value $0.01 per share, none of which are issued or outstanding. The Board of Directors has the authority to issue the preferred stock in one or more series and to establish the rights, preferences, and dividends. | ||||||||||||
A summary of shares of common stock issued in connection with the exercise of stock options follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Shares issued | 1.1 | 1.7 | 4.4 | |||||||||
Proceeds from the exercise of stock options | $ | 22.7 | $ | 32 | $ | 78.7 | ||||||
Average exercise price per share | $ | 20.31 | $ | 19.33 | $ | 17.74 | ||||||
The following table presents a summary of shares of common stock issued in connection with grants of restricted stock and shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock or to pay for an option exercise (in actual number of shares): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Shares issued | 137,144 | 160,740 | 163,892 | |||||||||
Shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock or to pay for an option exercise | 44,738 | 81,717 | 59,452 | |||||||||
StockBased_Compensation
Stock-Based Compensation | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Stock-Based Compensation | ' | ||||||||||||
STOCK-BASED COMPENSATION | |||||||||||||
The AutoNation, Inc. 2008 Equity and Incentive Plan (“2008 Plan”) provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based and cash-based awards to employees. A maximum of 12.0 million shares may be issued under the 2008 Plan, provided that no more than 2.0 million shares may be issued pursuant to the grant of awards, other than options or stock appreciation rights, that are settled in shares. The exercise price of all stock options granted in 2013 under the 2008 Plan, is equal to the closing price of our common stock on the date such awards were granted. | |||||||||||||
The AutoNation, Inc. 2007 Non-Employee Director Stock Option Plan (as amended, the “2007 Plan”) provides for the grant of stock options to our non-employee directors. A maximum of 2.0 million shares may be issued under the 2007 Plan. The exercise price of all stock options granted in 2013 under the 2007 Plan is equal to the closing price of our common stock on the date such awards were granted. | |||||||||||||
Stock Options | |||||||||||||
In 2013, the Executive Compensation Subcommittee of the Compensation Committee of our Board of Directors approved an annual grant of 0.8 million employee stock options for 2013. One-fourth of each employee stock option award that was approved in 2013 was granted on each of March 1, June 3, September 3, and December 2, 2013. Additionally, each of our non-employee directors received an automatic grant of an option to purchase 5,000 shares of our common stock on each of March 1, June 3, September 3, and December 2, 2013. The options granted in 2013 have an exercise price equal to the closing price per share on the grant date ($43.45 on March 1, $46.22 on June 3, $47.25 on September 3, and $48.80 on December 2, 2013). | |||||||||||||
Stock options granted under all plans are non-qualified. Upon exercise, shares of common stock are issued from our treasury stock. Employee stock options have a term of 10 years from the first date of grant (i.e., all employee stock options granted in 2013 will expire on March 1, 2023) and vest in equal installments over four years commencing on June 1 of the year following the grant date (e.g., 25% of each option grant made in 2013 will vest on June 1, 2014). | |||||||||||||
Stock option awards granted to non-employee directors have a term of 10 years from the first date of grant and vest in 25% annual increments on each June 1 of the four years following the grant date, or in full upon termination of Board membership if prior to June 1 of the fourth year following the grant date. | |||||||||||||
We use the Black-Scholes valuation model to determine compensation expense and amortize compensation expense over the requisite service period of the grants on a straight-line basis. Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost is recognized over the shorter of the stated vesting period or the period until employees become retirement-eligible. | |||||||||||||
The following table summarizes the assumptions used relating to the valuation of our stock options during 2013, 2012, and 2011: | |||||||||||||
Grant Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Risk-free interest rate | 0.58% - 2.24% | 0.49% - 1.40% | 0.62% - 2.81% | ||||||||||
Expected dividend yield | — | — | — | ||||||||||
Expected term | 4 - 7 years | 4 - 7 years | 4 - 7 years | ||||||||||
Expected volatility | 29% - 44% | 39% - 48% | 39% - 50% | ||||||||||
The risk-free interest rate is based on the U.S. Treasury yield curve at the time of the grant with a remaining term equal to the expected term used for stock options granted. The expected term of stock options granted is derived from historical data and represents the period of time that stock options are expected to be outstanding. The expected volatility is based on historical volatility, implied volatility, and other factors. | |||||||||||||
The following table summarizes stock option activity during 2013: | |||||||||||||
Stock Options | |||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||
(in millions) | Average | Average | Intrinsic Value | ||||||||||
Exercise Price | Remaining | (in millions) | |||||||||||
Contractual | |||||||||||||
Term (Years) | |||||||||||||
Options outstanding at January 1 | 6.2 | $ | 24.29 | ||||||||||
Granted (1) | 1 | $ | 46.43 | ||||||||||
Exercised | (1.1 | ) | $ | 20.31 | |||||||||
Forfeited | (0.1 | ) | $ | 35.4 | |||||||||
Expired | — | $ | — | ||||||||||
Options outstanding as of December 31 | 6 | $ | 28.48 | 6.58 | $ | 127.4 | |||||||
Options exercisable at December 31 | 3.5 | $ | 21.23 | 5.48 | $ | 100.7 | |||||||
Options exercisable at December 31 and expected to vest thereafter | 6 | $ | 28.35 | 6.56 | $ | 127.1 | |||||||
Options available for future grants at December 31 | 6 | ||||||||||||
(1) | The options granted during 2013, are related to our employee and non-employee director quarterly stock option award grants in March, June, September, and December 2013. | ||||||||||||
The weighted average grant-date fair value of stock options granted and total intrinsic value of stock options exercised are summarized in the following table: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average grant-date fair value of stock options granted | $ | 17.93 | $ | 15.25 | $ | 15.69 | |||||||
Total intrinsic value of stock options exercised (in millions) | $ | 31.3 | $ | 36.2 | $ | 81 | |||||||
Restricted Stock | |||||||||||||
In 2013, the Executive Compensation Subcommittee of the Compensation Committee of our Board of Directors approved a total of 0.1 million shares of restricted stock, all of which were granted to restricted stock-eligible employees on March 1, 2013. | |||||||||||||
Restricted stock awards are considered nonvested share awards as defined under generally accepted accounting principles and are issued from our treasury stock. Restricted stock awards vest in equal installments over four years commencing on June 1 of the year following the grant date. Compensation cost for restricted stock awards is based on the closing price of our common stock on the date of grant and is recognized over the shorter of the stated vesting period or the period until employees become retirement-eligible. | |||||||||||||
The following table summarizes information about vested and unvested restricted stock for 2013: | |||||||||||||
Restricted Stock | |||||||||||||
Shares | Weighted-Average | ||||||||||||
(in millions) | Grant Date | ||||||||||||
Fair Value | |||||||||||||
Nonvested at January 1 | 0.3 | $ | 27.81 | ||||||||||
Granted (1) | 0.1 | $ | 43.45 | ||||||||||
Vested | (0.1 | ) | $ | 24.33 | |||||||||
Forfeited | — | $ | — | ||||||||||
Nonvested at December 31 | 0.3 | $ | 35.76 | ||||||||||
(1) | The restricted stock awards granted during 2013 are related to our employee annual restricted stock award grant in March 2013. | ||||||||||||
The weighted average grant-date fair value of restricted stock awards granted and total fair value of restricted stock awards vested are summarized in the following table: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average grant-date fair value of restricted stock awards granted | $ | 43.45 | $ | 34.31 | $ | 32.5 | |||||||
Total fair value of restricted stock awards vested (in millions) | $ | 6.8 | $ | 5.8 | $ | 5.5 | |||||||
Compensation Expense | |||||||||||||
The following table summarizes the total stock-based compensation expense recognized in Selling, General, and Administrative Expenses in the Consolidated Statements of Income and the total recognized tax benefit related thereto: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Stock options | $ | 16.6 | $ | 14.8 | $ | 15.2 | |||||||
Restricted stock | 4.7 | 3.8 | 3.2 | ||||||||||
Total stock-based compensation expense | $ | 21.3 | $ | 18.6 | $ | 18.4 | |||||||
Tax benefit related to stock-based compensation expense | $ | 8.1 | $ | 7.1 | $ | 7 | |||||||
As of December 31, 2013, there was $20.1 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, of which $13.5 million relates to stock options and $6.6 million relates to restricted stock. These amounts are expected to be recognized over a weighted average period of 1.6 years. | |||||||||||||
We realized tax benefits related to stock options exercised and/or vesting of restricted stock of $14.3 million in 2013, $15.9 million in 2012, and $32.8 million in 2011. |
Income_Taxes
Income Taxes | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||||
Income Taxes | ' | |||||||||||||||||||
INCOME TAXES | ||||||||||||||||||||
The components of the income tax provision from continuing operations for the years ended December 31 are as follows: | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | 189.7 | $ | 146.9 | $ | 125.3 | ||||||||||||||
State | 28.9 | 25.1 | 21.3 | |||||||||||||||||
Federal and state deferred | 13.4 | 27.1 | 31.3 | |||||||||||||||||
Change in valuation allowance, net | (3.7 | ) | 0.1 | (0.2 | ) | |||||||||||||||
Adjustments and settlements | 0.3 | 0.3 | (0.6 | ) | ||||||||||||||||
Income tax provision | $ | 228.6 | $ | 199.5 | $ | 177.1 | ||||||||||||||
A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows: | ||||||||||||||||||||
2013 | % | 2012 | % | 2011 | % | |||||||||||||||
Income tax provision at statutory rate | $ | 211.6 | 35 | $ | 180.9 | 35 | $ | 161.4 | 35 | |||||||||||
Non-deductible expenses (income), net | (0.6 | ) | (0.1 | ) | (0.2 | ) | — | 1.1 | 0.2 | |||||||||||
State income taxes, net of federal benefit | 21.7 | 3.6 | 18.8 | 3.6 | 16.7 | 3.6 | ||||||||||||||
232.7 | 38.5 | 199.5 | 38.6 | 179.2 | 38.8 | |||||||||||||||
Change in valuation allowance, net | (3.7 | ) | (0.6 | ) | 0.1 | — | (0.2 | ) | — | |||||||||||
Adjustments and settlements | 0.3 | — | 0.3 | — | (0.6 | ) | (0.2 | ) | ||||||||||||
Other, net | (0.7 | ) | (0.1 | ) | (0.4 | ) | — | (1.3 | ) | (0.2 | ) | |||||||||
Income tax provision | $ | 228.6 | 37.8 | $ | 199.5 | 38.6 | $ | 177.1 | 38.4 | |||||||||||
Deferred income tax asset and liability components at December 31 are as follows: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Deferred income tax assets: | ||||||||||||||||||||
Inventory | $ | 24.6 | $ | 20.3 | ||||||||||||||||
Receivable reserves | 3 | 4 | ||||||||||||||||||
Warranty, chargeback, and self-insurance liabilities | 49.2 | 42.8 | ||||||||||||||||||
Other accrued liabilities | 21.6 | 18.7 | ||||||||||||||||||
Deferred compensation | 19.7 | 12.9 | ||||||||||||||||||
Stock-based compensation | 24.1 | 20.6 | ||||||||||||||||||
Loss carryforwards—federal and state | 10.5 | 13.8 | ||||||||||||||||||
Other, net | 12.7 | 15.4 | ||||||||||||||||||
Total deferred income tax assets | 165.4 | 148.5 | ||||||||||||||||||
Valuation allowance | (2.7 | ) | (6.5 | ) | ||||||||||||||||
Deferred income tax assets, net of valuation allowance | 162.7 | 142 | ||||||||||||||||||
Deferred income tax liabilities: | ||||||||||||||||||||
Long-lived assets (intangible assets and property) | (200.2 | ) | (170.1 | ) | ||||||||||||||||
Other, net | (21.3 | ) | (16.6 | ) | ||||||||||||||||
Total deferred income tax liabilities | (221.5 | ) | (186.7 | ) | ||||||||||||||||
Net deferred income tax assets (liabilities) | $ | (58.8 | ) | $ | (44.7 | ) | ||||||||||||||
We had $57.7 million of current deferred income tax assets and $116.5 million of non-current deferred income tax liabilities at December 31, 2013, and $44.7 million of current deferred income tax assets, and $89.4 million of non-current deferred income tax liabilities at December 31, 2012. Current deferred income tax assets are classified as Other Current Assets and non-current deferred income tax liabilities are classified as Deferred Income Taxes in the accompanying Consolidated Balance Sheets. | ||||||||||||||||||||
Income taxes payable included in Other Current Liabilities totaled $8.4 million at December 31, 2013 and $3.2 million at December 31, 2012. | ||||||||||||||||||||
At December 31, 2013, we had $173.5 million of gross domestic state net operating loss carryforwards and capital loss carryforwards, and $4.5 million of state tax credits, all of which result in a deferred tax asset of $10.5 million and expire from 2014 through 2034. At December 31, 2013, we had $2.7 million of valuation allowance related to these loss carryforwards. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We provide valuation allowances to offset portions of deferred tax assets due to uncertainty surrounding the future realization of such deferred tax assets. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. Certain decreases to valuation allowances are offset against intangible assets associated with business acquisitions accounted for under the acquisition method of accounting. | ||||||||||||||||||||
During 2013, we completed a restructuring of certain of our subsidiaries, a consequence of which was the release of a valuation allowance of $3.4 million, which was reflected as a benefit in our income tax provision for the three and twelve months ended December 31, 2013. | ||||||||||||||||||||
We recognized net tax benefits related to the adjustment and resolution of certain income tax matters of $1.3 million in 2011. | ||||||||||||||||||||
We file income tax returns in the U.S. federal jurisdiction and various states. As a matter of course, various taxing authorities, including the IRS, regularly audit us. These audits may result in proposed assessments where the ultimate resolution may result in our owing additional taxes. Currently, no tax years are under examination by the IRS and tax years from 2009 to 2010 are under examination by U.S. state jurisdictions. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters. | ||||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Balance at January 1 | $ | 6.8 | $ | 6.4 | $ | 6.9 | ||||||||||||||
Additions based on tax positions related to the current year | — | — | — | |||||||||||||||||
Additions for tax positions of prior years | 0.8 | 0.5 | 0.9 | |||||||||||||||||
Reductions for tax positions of prior years | (0.2 | ) | — | — | ||||||||||||||||
Reductions for expirations of statute of limitations | (2.2 | ) | — | — | ||||||||||||||||
Settlements | (0.4 | ) | (0.1 | ) | (1.4 | ) | ||||||||||||||
Balance at December 31 | $ | 4.8 | $ | 6.8 | $ | 6.4 | ||||||||||||||
We had accumulated interest and penalties associated with these unrecognized tax benefits of $5.1 million at December 31, 2013, $4.5 million at December 31, 2012, and $4.0 million at December 31, 2011. We additionally had a deferred tax asset of $3.6 million at December 31, 2013, $5.5 million at December 31, 2012, and $5.2 million at December 31, 2011, related to these balances. The net of the unrecognized tax benefits, associated interest, penalties, and deferred tax asset was $6.3 million at December 31, 2013, $5.8 million at December 31, 2012, and $5.2 million at December 31, 2011, which if resolved favorably (in whole or in part) would reduce our effective tax rate. The unrecognized tax benefits, associated interest, penalties, and deferred tax asset are included as components of Other Assets and Other Liabilities in the Consolidated Balance Sheets. | ||||||||||||||||||||
It is our continuing policy to account for interest and penalties associated with income tax obligations as a component of income tax expense. We recognized $0.4 million during 2013, $0.3 million during 2012, and $0.3 million during 2011 (each net of tax effect), of interest and penalties as part of the provision for income taxes in the Consolidated Statements of Income. | ||||||||||||||||||||
We do not expect that our unrecognized tax benefits will significantly increase or decrease during the twelve months beginning January 1, 2014. | ||||||||||||||||||||
In September 2013, the IRS released final tangible property regulations under Sections 162(a) and 263(a) of the Internal Revenue Code regarding the deduction and capitalization of expenditures related to tangible property as well as dispositions of tangible property. These regulations will be effective for our tax year beginning January 1, 2014. We are currently assessing the impact of these regulations and do not anticipate they will have a material impact on our consolidated financial position, results of operations, or cash flows. |
Earnings_Loss_Per_Share
Earnings (Loss) Per Share | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Earnings (Loss) Per Share | ' | |||||||||||
EARNINGS (LOSS) PER SHARE | ||||||||||||
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are to be included in the computation of earnings per share (“EPS”) under the two-class method. Our restricted stock awards are considered participating securities because they contain non-forfeitable rights to dividends. As the number of shares granted under such awards is immaterial, all earnings per share amounts reflect such shares as if they were fully vested shares and the disclosures associated with the two-class method are not presented. | ||||||||||||
Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards. Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding adjusted for the dilutive effect of stock options. | ||||||||||||
The following table presents the calculation of basic and diluted EPS: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income from continuing operations | $ | 375.8 | $ | 317.3 | $ | 284.2 | ||||||
Loss from discontinued operations, net of income taxes | (0.9 | ) | (0.9 | ) | (2.8 | ) | ||||||
Net income | $ | 374.9 | $ | 316.4 | $ | 281.4 | ||||||
Weighted average common shares outstanding used in calculating basic EPS | 121.3 | 123.8 | 144.8 | |||||||||
Effect of dilutive stock options | 2 | 2 | 2.5 | |||||||||
Weighted average common shares used in calculating diluted EPS | 123.3 | 125.8 | 147.3 | |||||||||
Basic EPS amounts: | ||||||||||||
Continuing operations | $ | 3.1 | $ | 2.56 | $ | 1.96 | ||||||
Discontinued operations | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | |||
Net income | $ | 3.09 | $ | 2.56 | $ | 1.94 | ||||||
Diluted EPS amounts: | ||||||||||||
Continuing operations | $ | 3.05 | $ | 2.52 | $ | 1.93 | ||||||
Discontinued operations | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | |||
Net income | $ | 3.04 | $ | 2.52 | $ | 1.91 | ||||||
A summary of anti-dilutive options excluded from the computation of diluted earnings per share is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Anti-dilutive options excluded from the computation of diluted earnings per share | 0.6 | 0.9 | 0.4 | |||||||||
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Divestitures | ' |
DIVESTITURES | |
Discontinued operations are related to stores that were sold or terminated, that we have entered into an agreement to sell or terminate, or for which we otherwise deem a proposed sales transaction or termination to be probable, with no material changes expected. Generally, the sale of a store is completed within 60 to 90 days after the date of a sale agreement. We have accounted for a store that either has been disposed of or is classified as held for sale as a discontinued operation if (a) the operations and cash flows of the store were eliminated from our ongoing operations and (b) we had no significant continuing involvement in the operations of the store after the disposal transaction. | |
In evaluating whether a store’s cash flows were eliminated from our ongoing operations, we considered whether we expected to continue to generate revenues or incur expenses from the sale of similar products or services to customers of the disposed store in the same geographic market. If we believed that a significant portion of the cash flows previously generated by the disposed store had migrated to our other operating stores, we did not treat the disposition as a discontinued operation. | |
We received proceeds (net of cash relinquished) of $10.1 million during 2013, $6.8 million during 2012, and $4.9 million during 2011 related to discontinued operations. | |
We had a loss from discontinued operations totaling $0.9 million in 2013, net of income taxes, primarily related to carrying costs for real estate we have not yet sold associated with stores that have been closed and other adjustments related to disposed operations, partially offset by a gain on disposal of a store during the second quarter of 2013. | |
We had a loss from discontinued operations totaling $0.9 million in 2012, net of income taxes, primarily related to carrying costs for real estate we have not yet sold associated with stores that have been closed. | |
We had a loss from discontinued operations totaling $2.8 million in 2011, net of income taxes, primarily related to carrying costs for real estate not yet sold related to stores that had been closed, as well as expected losses on real estate to be sold. | |
We had assets held for sale in discontinued operations of $36.7 million at December 31, 2013 and $45.4 million at December 31, 2012, primarily related to real estate we have not yet sold associated with stores that have been closed. Assets and liabilities of discontinued operations are reported in the “Corporate and other” category of our segment information in Note 20 below. | |
During the first quarter of 2014, we divested our customer lead distribution business, the operations of which we reported in the “Corporate and other” category of our segment information. We received cash and other consideration of approximately $11 million and recorded a gain of approximately $8 million ($5 million after-tax), which will be included in our results for the three months ended March 31, 2014. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2013 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
ACQUISITIONS | |
We purchased five stores and related assets during 2013, six in 2012, and one in 2011. The amounts incurred related to acquisitions, including capital leases and deferred purchase price commitments, were $95.7 million in 2013, $203.7 million in 2012, and $64.2 million in 2011. Acquisitions are included in the Consolidated Financial Statements from the date of acquisition. The purchase price allocations for the business combinations in 2013 are tentative and subject to final adjustment. | |
The acquisitions that occurred during 2013 were not material to our financial condition or results of operations. Additionally, the pro forma consolidated statements of income as if the results of these acquisitions had been included in our consolidated results for the entire years ended December 31, 2013 and 2012, would not have been materially different from our reported consolidated statements of income for these periods. |
Related_Party_Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2013 | |
Related Party Transactions [Abstract] | ' |
Related Party Transactions | ' |
RELATED PARTY TRANSACTIONS | |
It is our policy that transactions with affiliated parties must be entered into in good faith on fair and reasonable terms that are no less favorable to us than those that would be available in a comparable transaction in arm’s-length dealings with an unrelated third-party. | |
We are parties to agreements with certain manufacturers that eliminate any potential adverse consequences under our framework agreements with those manufacturers in the event that ESL Investments, Inc. and certain of its investment affiliates acquire 50% or more of our common stock. | |
There were no other material transactions with related parties in the years ended December 31, 2013, 2012, or 2011. |
Cash_Flow_Information
Cash Flow Information | 12 Months Ended |
Dec. 31, 2013 | |
Supplemental Cash Flow Information [Abstract] | ' |
Cash Flow Information | ' |
CASH FLOW INFORMATION | |
We consider all highly liquid investments with a maturity of three months or less as of the date of purchase to be cash equivalents unless the investments are legally or contractually restricted for more than three months. We had non-cash investing activities of $7.8 million in 2013 related to capital leases associated with our November 2013 acquisitions, and $62.1 million in 2012 related to capital leases and deferred purchase price commitments associated with our December 2012 acquisitions. We also had non-cash investing activities related to other increases in property acquired under capital leases of $10.2 million during 2013, $20.1 million during 2012, and $24.2 million during 2011. We also had accrued purchases of property and equipment of $28.1 million at December 31, 2013, $23.6 million at December 31, 2012, and $17.3 million at December 31, 2011. The effect of non-cash transactions is excluded from the accompanying Consolidated Statements of Cash Flows. | |
We made interest payments of $136.0 million in 2013, $119.6 million in 2012, and $103.6 million in 2011 including interest on vehicle inventory financing. We made income tax payments, net of income tax refunds, of $200.3 million in 2013, $147.0 million in 2012, and $121.1 million in 2011. |
Financial_Instruments_and_Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Fair Value Disclosures [Abstract] | ' | |||||||
Financial Instruments and Fair Value Measurements | ' | |||||||
FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS | ||||||||
The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment, and therefore cannot be determined with precision. The assumptions used have a significant effect on the estimated amounts reported. | ||||||||
Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value: | ||||||||
Level 1 | Quoted prices in active markets for identical assets or liabilities | |||||||
Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted market prices in markets that are not active; or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities | |||||||
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities | |||||||
The following methods and assumptions were used by us in estimating fair value disclosures for financial instruments: | ||||||||
• | Cash and cash equivalents, accounts receivable, other current assets, vehicle floorplan payable, accounts payable, other current liabilities, and variable rate debt: The amounts reported in the accompanying Consolidated Balance Sheets approximate fair value due to their short-term nature or the existence of variable interest rates that approximate prevailing market rates. | |||||||
• | Fixed rate debt: Our fixed rate debt consists primarily of amounts outstanding under our senior unsecured notes and mortgages. We estimate the fair value of our senior unsecured notes using quoted prices for the identical liability (Level 1). We estimate the fair value of our mortgages using a present value technique based on our current market interest rates for similar types of financial instruments (Level 2). A summary of the aggregate carrying values and fair values of our fixed rate debt is as follows: | |||||||
December 31, 2013 | December 31, 2012 | |||||||
Carrying value | $ | 1,039.90 | $ | 1,056.10 | ||||
Fair value | $ | 1,135.20 | $ | 1,138.00 | ||||
Nonfinancial assets such as goodwill, other intangible assets, and long-lived assets held and used are measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized or for a business combination. The fair values less costs to sell of long-lived assets or disposal groups held for sale are assessed each reporting period they remain classified as held for sale. Subsequent changes in the held for sale long-lived asset’s or disposal group’s fair value less cost to sell (increase or decrease) are reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset or disposal group at the time it was initially classified as held for sale. | ||||||||
Goodwill and Other Intangible Assets | ||||||||
Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it was necessary to calculate the fair values of our reporting units under the two-step goodwill impairment test. We completed our qualitative annual assessments of potential goodwill impairment as of April 30, 2013 and 2012, and we determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts. Accordingly, no impairment charges were recorded for the carrying value of goodwill during 2013 or 2012. | ||||||||
Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives. Under accounting standards, we chose to make a qualitative evaluation about the likelihood of franchise rights impairment to determine whether it was necessary to perform a quantitative impairment test. We completed our qualitative assessment of franchise rights impairment as of April 30, 2013, and we determined that it was not more likely than not that the fair values of our franchise rights were less than their carrying amounts. Accordingly, no impairment charges were recorded for the carrying value of franchise rights during 2013. | ||||||||
During 2012 we performed a quantitative impairment test and we recorded $4.2 million of non-cash impairment charges related to rights under a Premium Luxury store’s franchise agreement. The non-cash impairment charge was recorded to reduce the carrying value of the store’s franchise agreement to its fair value, and is classified as Franchise Rights Impairment in the accompanying Consolidated Statements of Income. | ||||||||
The development of the assumptions used in our annual impairment tests is coordinated by our financial planning and analysis group, and the assumptions are reviewed by management. See Note 5 of the Notes to Consolidated Financial Statements for information on how fair value measurements are derived for our goodwill and franchise rights in our quantitative impairment tests. | ||||||||
Long-Lived Assets | ||||||||
The fair value measurement valuation process for our long-lived assets is established by our corporate real estate services group, which reports to the Company’s President and Chief Operating Officer. Fair value measurements, which are based on Level 3 inputs, and changes in fair value measurements are reviewed and assessed each quarter for properties classified as held for sale, or when an indicator of impairment exists for properties classified as held and used, by the corporate real estate services group. Our corporate real estate services group utilizes its knowledge of the automotive industry and historical experience in real estate markets and transactions in establishing the valuation process, which is generally based on a combination of the market and replacement cost approaches. | ||||||||
In a market approach, the corporate real estate services group uses transaction prices for comparable properties that have recently been sold. These transaction prices are adjusted for factors related to a specific property. The corporate real estate services group also evaluates changes in local real estate markets, and/or recent market interest or negotiations related to a specific property. In a replacement cost approach, the cost to replace a specific long-lived asset is considered, which is adjusted for depreciation from physical deterioration, as well as functional and economic obsolescence, if present and measurable. | ||||||||
To validate the fair values determined under the valuation process noted above, our corporate real estate services group also obtains independent third-party appraisals for our properties and/or third-party brokers’ opinions of value, which are generally developed using the same valuation approaches described above, and evaluates any recent negotiations or discussions with third-party real estate brokers related to a specific long-lived asset or market. | ||||||||
Long-lived Assets Held and Used in Continuing Operations | ||||||||
During 2013 and 2012, we fully impaired certain long-lived assets held and used in continuing operations and recorded non-cash impairment charges of $0.7 million in 2013 and $0.8 million in 2012. These charges are recorded as a component of Other Expenses (Income), Net in the Consolidated Statements of Income and are reported in the “Corporate and other” category of our segment information. | ||||||||
Long-lived Assets Held for Sale in Continuing Operations | ||||||||
During 2013 and 2012, we recorded no impairment charges related to our long-lived assets held for sale in continuing operations. | ||||||||
Long-lived Assets Held for Sale in Discontinued Operations | ||||||||
During 2013, we recorded no impairment charges related to our discontinued operations assets held for sale. | ||||||||
During 2012, long-lived assets held for sale in discontinued operations with a carrying amount of $3.8 million were written down to their fair value of $3.7 million, resulting in a non-cash impairment charge of $0.1 million. This non-cash impairment charge related to assets held for sale in discontinued operations was included in Loss from Discontinued Operations in our Consolidated Statements of Income. | ||||||||
As of December 31, 2013, we had assets held for sale of $59.8 million in continuing operations and $34.5 million in discontinued operations. As of December 31, 2012, we had assets held for sale of $70.4 million in continuing operations and $43.2 million in discontinued operations. |
Business_and_Credit_Concentrat
Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2013 | |
Business And Credit Concentrations [Abstract] | ' |
Business And Credit Concentrations | ' |
BUSINESS AND CREDIT CONCENTRATIONS | |
We own and operate franchised automotive stores in the United States pursuant to franchise agreements with vehicle manufacturers. Franchise agreements generally provide the manufacturers or distributors with considerable influence over the operations of the store. The success of any franchised automotive dealership is dependent, to a large extent, on the financial condition, management, marketing, production, and distribution capabilities of the vehicle manufacturers or distributors of which we hold franchises. We had receivables from manufacturers or distributors of $172.9 million at December 31, 2013, and $159.9 million at December 31, 2012. Additionally, a large portion of our Contracts-in-Transit included in Receivables, net, in the accompanying Consolidated Balance Sheets, are due from automotive manufacturers’ captive finance subsidiaries which provide financing directly to our new and used vehicle customers. | |
We purchase substantially all of our new vehicles from various manufacturers or distributors at the prevailing prices available to all franchised dealers. Additionally, we finance our new vehicle inventory primarily with automotive manufacturers’ captive finance subsidiaries. Our sales volume could be adversely impacted by the manufacturers’ or distributors’ inability to supply the stores with an adequate supply of vehicles and related financing. | |
We are subject to a concentration of risk in the event of financial distress of or other adverse event related to a major vehicle manufacturer. The core brands of vehicles that we sell are manufactured by Toyota, Ford, Honda, Nissan, General Motors, Mercedes-Benz, BMW, Chrysler, and Volkswagen. Our business could be materially adversely impacted by another bankruptcy of or other adverse event related to a major vehicle manufacturer or related lender. | |
Concentrations of credit risk with respect to non-manufacturer trade receivables are limited due to the wide variety of customers and markets in which our products are sold as well as their dispersion across many different geographic areas in the United States. Consequently, at December 31, 2013, we do not consider AutoNation to have any significant non-manufacturer concentrations of credit risk. |
Chargeback_Reserves
Chargeback Reserves | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Chargeback Reserves [Abstract] | ' | |||||||||||
Chargeback Reserves | ' | |||||||||||
CHARGEBACK RESERVES | ||||||||||||
We may be charged back for commissions related to financing, vehicle service, or protection products in the event of early termination, default, or prepayment of the contracts by customers (“chargebacks”). However, our exposure to loss generally is limited to the commissions that we receive. These commissions are recorded at the time of the sale of the vehicles, net of an estimated liability for chargebacks. The following is a rollforward of our estimated chargeback liability for each of the three years presented in our Consolidated Financial Statements: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance - January 1 | $ | 56 | $ | 46.2 | $ | 42.5 | ||||||
Add: Provisions | 64.4 | 52.9 | 39.9 | |||||||||
Deduct: Chargebacks | (52.8 | ) | (43.1 | ) | (36.2 | ) | ||||||
Balance - December 31 | $ | 67.6 | $ | 56 | $ | 46.2 | ||||||
Segment_Information
Segment Information | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Segment Information | ' | |||||||||||
SEGMENT INFORMATION | ||||||||||||
At December 31, 2013, 2012, and 2011, we had three operating and reportable segments: (1) Domestic, (2) Import, and (3) Premium Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford, and Chrysler. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, and Lexus. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products. | ||||||||||||
“Corporate and other” is comprised of our other businesses, including collision centers, a customer lead distribution business, and an auction operation, each of which generates revenues, as well as unallocated corporate overhead expenses and retrospective commissions for certain finance and insurance transactions that we arrange under agreements with third parties. | ||||||||||||
The operating segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by our chief operating decision maker to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer. We have determined that our three operating segments also represent our reportable segments. | ||||||||||||
Reportable segment revenue, segment income, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures are as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenues: | ||||||||||||
Domestic | $ | 5,835.30 | $ | 5,131.60 | $ | 4,655.40 | ||||||
Import | 6,375.00 | 5,827.50 | 4,933.30 | |||||||||
Premium Luxury | 5,152.30 | 4,553.30 | 4,096.40 | |||||||||
Total segment revenue | 17,362.60 | 15,512.40 | 13,685.10 | |||||||||
Corporate and other | 155 | 155.1 | 147.2 | |||||||||
Total consolidated revenue | $ | 17,517.60 | $ | 15,667.50 | $ | 13,832.30 | ||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Segment income*: | ||||||||||||
Domestic | $ | 246.6 | $ | 209.4 | $ | 180 | ||||||
Import | 280.1 | 257.9 | 227.1 | |||||||||
Premium Luxury | 321.4 | 270.4 | 244.1 | |||||||||
Total segment income | 848.1 | 737.7 | 651.2 | |||||||||
Corporate and other | (161.2 | ) | (137.9 | ) | (121.9 | ) | ||||||
Other interest expense | (88.3 | ) | (86.9 | ) | (66.0 | ) | ||||||
Loss on debt extinguishment | — | — | (2.2 | ) | ||||||||
Interest income | 0.2 | 0.3 | 0.7 | |||||||||
Other income (losses), net | 5.6 | 3.6 | (0.5 | ) | ||||||||
Income from continuing operations before income taxes | $ | 604.4 | $ | 516.8 | $ | 461.3 | ||||||
*Segment income for each of our segments is defined as operating income less floorplan interest expense. | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Floorplan interest expense: | ||||||||||||
Domestic | $ | 23.7 | $ | 20.2 | $ | 20.4 | ||||||
Import | 16.3 | 14.2 | 11.2 | |||||||||
Premium Luxury | 12.6 | 10.7 | 9.7 | |||||||||
Corporate and other | 0.8 | 0.4 | 1.4 | |||||||||
Total floorplan interest expense | $ | 53.4 | $ | 45.5 | $ | 42.7 | ||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Depreciation and amortization: | ||||||||||||
Domestic | $ | 25.1 | $ | 23 | $ | 20.7 | ||||||
Import | 28.1 | 25 | 22.4 | |||||||||
Premium Luxury | 26.9 | 25.1 | 23.4 | |||||||||
Corporate and other | 15.2 | 14.2 | 17.2 | |||||||||
Total depreciation and amortization | $ | 95.3 | $ | 87.3 | $ | 83.7 | ||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Assets: | ||||||||||||
Domestic | $ | 2,143.10 | $ | 1,895.00 | $ | 1,539.10 | ||||||
Import | 2,030.40 | 1,787.40 | 1,487.60 | |||||||||
Premium Luxury | 1,633.60 | 1,541.60 | 1,295.00 | |||||||||
Corporate and other: | ||||||||||||
Goodwill | 1,259.60 | 1,237.40 | 1,172.20 | |||||||||
Franchise rights | 329.3 | 285.7 | 212.6 | |||||||||
Other Corporate and other assets | 518.1 | 455.9 | 492.3 | |||||||||
Total assets | $ | 7,914.10 | $ | 7,203.00 | $ | 6,198.80 | ||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Capital expenditures: | ||||||||||||
Domestic | $ | 61.9 | $ | 69.5 | $ | 31.7 | ||||||
Import | 76.1 | 55.2 | 60.6 | |||||||||
Premium Luxury | 45.5 | 33.1 | 55.5 | |||||||||
Corporate and other | 23.7 | 25.8 | 10.3 | |||||||||
Total capital expenditures | $ | 207.2 | $ | 183.6 | $ | 158.1 | ||||||
Multiemployer_Pension_Plans
Multiemployer Pension Plans | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Multiemployer Plans [Abstract] | ' | ||||||||||||||||||||||
Multiemployer Pension Plans | ' | ||||||||||||||||||||||
MULTIEMPLOYER PENSION PLANS | |||||||||||||||||||||||
Five of our 228 stores participate in multiemployer pension plans. We contribute to these multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: | |||||||||||||||||||||||
a. | Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. | ||||||||||||||||||||||
b. | If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be assumed by the remaining participating employers. | ||||||||||||||||||||||
c. | If we choose to stop participating in a multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan, referred to as a withdrawal liability. | ||||||||||||||||||||||
One of the multiemployer pension plans in which we participate is designated as being in “red zone” status, as defined by the Pension Protection Act (PPA) of 2006. Our participation in this plan for the year ended December 31, 2013, is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (EIN) and the three-digit plan number. The most recent PPA zone status available in 2013 and 2012 is for the plan’s year end at December 31, 2012, and December 31, 2011, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The last column lists the expiration date of the collective-bargaining agreements to which the plan is subject. A rehabilitation plan has been implemented for this plan. There have been no significant changes that affect the comparability of 2013, 2012, and 2011 contributions. | |||||||||||||||||||||||
Pension Protection Act Zone Status | Contributions of AutoNation | Expiration Date of Collective-Bargaining Agreement | |||||||||||||||||||||
($ in millions) (1) | |||||||||||||||||||||||
Pension Fund | EIN/Pension PlanNumber | 2013 | 2012 | 2013 | 2012 | 2011 | Surcharge Imposed | ||||||||||||||||
Automotive Industries Pension Plan | 94-1133245 - 001 | Red | Red | $ | 0.7 | $ | 0.6 | $ | 0.5 | No | -2 | ||||||||||||
Other funds | 0.4 | 0.3 | 0.2 | ||||||||||||||||||||
Total contributions | $ | 1.1 | $ | 0.9 | $ | 0.7 | |||||||||||||||||
(1) | Our stores were not listed in the Automotive Industries Pension Plan’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2012 or 2011. | ||||||||||||||||||||||
(2) | We are party to two collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. One expired May 31, 2011, and one expired June 30, 2011, and both are currently extended during collective bargaining for new agreements. | ||||||||||||||||||||||
In the event that we decide to cease participating in this plan, we could be assessed a withdrawal liability. We currently do not have any plans that would trigger the withdrawal liability under this multiemployer pension plan. |
Description_of_Business_and_Su1
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2013 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | |
Basis of Presentation | ' | |
The accompanying Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries. All of our automotive dealership subsidiaries are indirectly wholly owned by the parent company, AutoNation, Inc. All significant intercompany accounts and transactions have been eliminated in the consolidation. | ||
Certain reclassifications of amounts previously reported have been made to the accompanying Consolidated Financial Statements in order to maintain consistency and comparability between periods presented. | ||
Use of Estimates | ' | |
The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions 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 revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements, giving due consideration to materiality. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ materially from these estimates. We periodically evaluate estimates and assumptions used in the preparation of the financial statements and make changes on a prospective basis when adjustments are necessary. Significant estimates made by AutoNation in the accompanying Consolidated Financial Statements include certain assumptions related to goodwill, intangible assets, long-lived assets, and assets held for sale, accruals for chargebacks against revenue recognized from the sale of finance and insurance products, accruals related to self-insurance programs, certain legal proceedings, estimated tax liabilities, estimated losses from disposals of discontinued operations, and certain assumptions related to stock-based compensation. | ||
Cash and Cash Equivalents | ' | |
We consider all highly liquid investments with a maturity of three months or less as of the date of purchase to be cash equivalents unless the investments are legally or contractually restricted for more than three months. Under our cash management system, outstanding checks that are in excess of the cash balances at certain banks are included in Accounts Payable in the Consolidated Balance Sheets and changes in these amounts are reflected in operating cash flows in the accompanying Consolidated Statements of Cash Flows. | ||
Inventory | ' | |
Inventory consists primarily of new and used vehicles held for sale, valued at the lower of cost or market using the specific identification method. Cost includes acquisition, reconditioning, dealer installed accessories, and transportation expenses. Additionally, we receive floorplan interest assistance from certain manufacturers. This assistance is reflected as a reduction to the inventory cost and as a reduction to cost of sales as the vehicles are sold. At December 31, 2013 and 2012, inventory cost had been reduced by $19.7 million and $15.8 million, respectively, for interest assistance received from manufacturers. Parts, accessories, and other inventory are valued at the lower of acquisition cost (first-in, first-out) or market. | ||
Property and Equipment, net | ' | |
Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. Leased property meeting certain criteria is capitalized and the present value of the related lease payments is recorded as a liability and included in current and/or long-term debt based on the lease term. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in Other Expenses (Income), Net in the Consolidated Statements of Income. See Note 4 of the Notes to Consolidated Financial Statements for detailed information about our property and equipment. | ||
Depreciation is provided over the estimated useful lives of the assets involved using the straight-line method. Leasehold improvements and capitalized lease assets are amortized to depreciation expense over the estimated useful life of the asset or the respective lease term used in determining lease classification, whichever is shorter. The range of estimated useful lives is as follows: | ||
Buildings and improvements | 5 to 40 years | |
Furniture, fixtures, and equipment | 3 to 12 years | |
We continually evaluate property and equipment, including leasehold improvements, to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the remaining balance should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the property and equipment in assessing whether an asset has been impaired. We measure impairment losses based upon the amount by which the carrying amount of the asset exceeds the fair value. | ||
Goodwill and Other Intangible Assets, net | ' | |
Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so. | ||
Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from three to twenty-nine years. | ||
Goodwill and franchise rights assets are tested for impairment annually or more frequently when events or changes in circumstances indicate that impairment may have occurred. | ||
Stock-Based Compensation | ' | |
Stock options granted under all plans are non-qualified. Upon exercise, shares of common stock are issued from our treasury stock. We use the Black-Scholes valuation model to determine compensation expense associated with our stock options. Restricted stock awards are considered nonvested share awards as defined under generally accepted accounting principles and are issued from our treasury stock. Compensation cost for restricted stock awards is based on the closing price of our common stock on the date of grant. Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost for stock-based awards is recognized on a straight-line basis over the shorter of the stated vesting period or the period until employees become retirement-eligible. | ||
Revenue Recognition | ' | |
Revenue consists of the sales of new and used vehicles, sales of parts and automotive services, commissions from finance and insurance products, and sales of other products. We recognize revenue (which excludes sales taxes) in the period in which products are sold or services are provided. The automotive services we provide include, but are not limited to, customer-paid repairs and maintenance, as well as repairs and maintenance under manufacturer warranties and extended service contracts. We recognize vehicle and finance and insurance revenue when a sales contract has been executed, the vehicle has been delivered, and payment has been received or financing has been arranged. Revenue on finance and insurance products represents commissions earned by us for: (i) loans and leases placed with financial institutions in connection with customer vehicle purchases financed, (ii) vehicle service contracts sold, and (iii) other protection products sold. | ||
We sell and receive a commission, which is recognized upon sale, on the following types of products: extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products. The products we offer include products that are sold and administered by independent third parties, including the vehicle manufacturers’ captive finance subsidiaries. Pursuant to our arrangements with these third-party providers, we primarily sell the products on a straight commission basis; however, we may sell the product, recognize commission, and participate in future profit pursuant to retrospective commission arrangements, which is recognized as earned. | ||
Revenue Recognition, Chargebacks | ' | |
Certain commissions earned from the sales of finance and insurance products are subject to chargeback should the contracts be terminated prior to their expirations. An estimated liability for chargebacks against revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized. Our estimated liability for chargebacks is based primarily on our historical chargeback experience, and is influenced by the volume of vehicle sales in recent years and increases or decreases in early termination rates resulting from cancellation of vehicle service contracts and other protection products, defaults, refinancings and payoffs before maturity, and other factors. | ||
Insurance | ' | |
Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, employee medical benefits, automobile, and workers’ compensation. Costs in excess of this retained risk per claim may be insured under various contracts with third-party insurance carriers. We review our claim and loss history on a periodic basis to assist in assessing our future liability. The ultimate costs of these retained insurance risks are estimated by management and by third-party actuarial evaluation of historical claims experience, adjusted for current trends and changes in claims-handling procedures. | ||
Manufacturer Incentives and Other Rebates | ' | |
We receive various incentives from manufacturers based on achieving certain objectives, such as specified sales volume targets, as well as other objectives, including maintaining standards of a particular vehicle brand, which may include but are not limited to facility image and design requirements, customer satisfaction survey results, and training standards, among others. These incentives are typically based upon units purchased or sold. These manufacturer incentives are recognized as a reduction of new vehicle cost of sales when earned, generally at the time the related vehicles are sold or upon attainment of the particular program goals, whichever is later. | ||
We also receive manufacturer rebates and assistance for holdbacks, floorplan interest, and non-reimbursement-based advertising expenses (described below), which are reflected as a reduction in the carrying value of each vehicle purchased by us. We recognize holdbacks, floorplan interest assistance, non-reimbursement-based advertising rebates, cash incentives, and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold. | ||
Advertising | ' | |
We generally expense the cost of advertising as incurred, net of earned manufacturer reimbursements for specific advertising costs and other discounts. | ||
Advertising, Manufacturer Rebates | ' | |
Manufacturer advertising rebates that are reimbursements of costs associated with specific advertising expenses are earned in accordance with the respective manufacturers’ reimbursement-based advertising assistance programs, which is typically after we have incurred the corresponding advertising expenses, and are reflected as a reduction of advertising expense. | ||
Parts and Service Internal Profit | ' | |
Our parts and service departments provide reconditioning repair work for the majority of used vehicles acquired by our used vehicle departments and minor preparatory work for new vehicles acquired by our new vehicle departments. The parts and service departments charge the new and used vehicle departments as if they were third parties in order to account for total activity performed by that department. Revenues and costs of sales associated with the internal work performed by our parts and service departments are reflected in our parts and service results in our Consolidated Statements of Income. New and used vehicle revenues and costs of sales are reduced by the amount of the intracompany charge. As a result, the revenues and costs of sales associated with the internal work performed by our parts and service departments are eliminated in consolidation. We also maintain a reserve for internal profit on vehicles that have not been sold. | ||
Income Taxes | ' | |
We file a consolidated federal income tax return. Deferred income taxes have been provided for temporary differences between the recognition of revenue and expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the financial statements. | ||
Taxes Assessed by Governmental Authorities | ' | |
Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue in our Consolidated Financial Statements. | ||
Earnings (Loss) Per Share | ' | |
Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards which contain rights to non-forfeitable dividends. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding adjusted for the dilutive effect of stock options. | ||
Recent Accounting Pronouncements | ' | |
Presentation of an Unrecognized Tax Benefit When a Net Operating Loss, a Similar Tax Loss, or a Tax Credit Carryforward Exists | ||
In July 2013, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update to reduce the diversity in practice regarding the financial statement presentation of an unrecognized tax benefit when a net operating loss carryforward, a similar tax loss, or a tax credit carryforward exists. The amendments in this accounting standard update are effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. We do not expect the adoption of this accounting standard update to have a material impact on our consolidated financial position, results of operations, or cash flows. | ||
Testing Indefinite-Lived Intangible Assets for Impairment | ||
In July 2012, the FASB issued an accounting standard update that amends the accounting guidance on testing indefinite-lived intangible assets for impairment. The amendments in this accounting standard update are intended to reduce complexity and costs by allowing an entity the option to make a qualitative evaluation about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it should perform a quantitative impairment test. The amendments also enhance the consistency of impairment testing guidance among long-lived asset categories by permitting an entity to assess qualitative factors to determine whether it is necessary to calculate the asset’s fair value when testing an indefinite-lived intangible asset for impairment, which is equivalent to the impairment testing requirements for other long-lived assets. The amendments in this accounting standard update are effective for interim and annual impairment tests performed for fiscal years beginning after September 15, 2012. We test indefinite-lived intangible assets for impairment annually on April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred. The adoption of this accounting standard update did not have an impact on our consolidated financial position, results of operations, or cash flows. |
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets, Net (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Goodwill and Intangible Assets, Intangible Assets, Indefinite-Lived, Policy | ' |
Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives and are tested at least annually on April 30 for impairment. As discussed in Note 1 above, the FASB issued an accounting standard update that permits an entity to first make a qualitative evaluation about the likelihood that an indefinite-lived intangible asset is impaired to determine whether it is necessary to perform a quantitative impairment test. | |
We completed our qualitative assessment of any potential franchise rights impairment as of April 30, 2013. | |
Goodwill and Intangible Assets, Goodwill, Policy | ' |
We test goodwill of our Domestic, Import, and Premium Luxury reporting units for impairment annually on April 30 or more frequently when events or changes in circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. | |
Under accounting standards, an entity is permitted to first make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it is necessary to calculate the fair value of a reporting unit under the quantitative two-step goodwill impairment test. We completed qualitative annual assessments of any potential goodwill impairment as of April 30, 2013 and 2012. |
Divestitures_Policies
Divestitures (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Divestitures | ' |
Discontinued operations are related to stores that were sold or terminated, that we have entered into an agreement to sell or terminate, or for which we otherwise deem a proposed sales transaction or termination to be probable, with no material changes expected. Generally, the sale of a store is completed within 60 to 90 days after the date of a sale agreement. We have accounted for a store that either has been disposed of or is classified as held for sale as a discontinued operation if (a) the operations and cash flows of the store were eliminated from our ongoing operations and (b) we had no significant continuing involvement in the operations of the store after the disposal transaction. | |
In evaluating whether a store’s cash flows were eliminated from our ongoing operations, we considered whether we expected to continue to generate revenues or incur expenses from the sale of similar products or services to customers of the disposed store in the same geographic market. If we believed that a significant portion of the cash flows previously generated by the disposed store had migrated to our other operating stores, we did not treat the disposition as a discontinued operation. |
Financial_Instruments_and_Fair1
Financial Instruments and Fair Value Measurements (Policies) | 12 Months Ended |
Dec. 31, 2013 | |
Fair Value Disclosures [Abstract] | ' |
Impairment Of Long-Lived Assets Policy | ' |
Nonfinancial assets such as goodwill, other intangible assets, and long-lived assets held and used are measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized or for a business combination. The fair values less costs to sell of long-lived assets or disposal groups held for sale are assessed each reporting period they remain classified as held for sale. Subsequent changes in the held for sale long-lived asset’s or disposal group’s fair value less cost to sell (increase or decrease) are reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset or disposal group at the time it was initially classified as held for sale. |
Receivables_Net_Tables
Receivables, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ' | |||||||
Components Of Receivables, Net Of Allowance For Doubtful Accounts | ' | |||||||
The components of receivables, net of allowance for doubtful accounts, at December 31 are as follows: | ||||||||
2013 | 2012 | |||||||
Trade receivables | $ | 110.9 | $ | 97.6 | ||||
Manufacturer receivables | 172.9 | 159.9 | ||||||
Other | 36.9 | 39.4 | ||||||
320.7 | 296.9 | |||||||
Less: Allowances | (4.0 | ) | (3.4 | ) | ||||
316.7 | 293.5 | |||||||
Contracts-in-transit and vehicle receivables | 424.2 | 404.9 | ||||||
Receivables, net | $ | 740.9 | $ | 698.4 | ||||
Inventory_and_Vehicle_Floorpla1
Inventory and Vehicle Floorplan Payable (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Inventory And Vehicle Floorplan Payable [Abstract] | ' | |||||||
Components Of Inventory | ' | |||||||
The components of inventory at December 31 are as follows: | ||||||||
2013 | 2012 | |||||||
New vehicles | $ | 2,330.80 | $ | 1,938.00 | ||||
Used vehicles | 346.5 | 318.7 | ||||||
Parts, accessories, and other | 149.9 | 140.2 | ||||||
Inventory | $ | 2,827.20 | $ | 2,396.90 | ||||
Components Of Vehicle Floorplan Payable | ' | |||||||
The components of vehicle floorplan payables at December 31 are as follows: | ||||||||
2013 | 2012 | |||||||
Vehicle floorplan payable - trade | $ | 2,130.10 | $ | 1,766.30 | ||||
Vehicle floorplan payable - non-trade | 898.9 | 773.9 | ||||||
Vehicle floorplan payable | $ | 3,029.00 | $ | 2,540.20 | ||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Property, Plant and Equipment [Abstract] | ' | |||||||
Property and Equipment, Net | ' | |||||||
A summary of property and equipment, net, at December 31 is as follows: | ||||||||
2013 | 2012 | |||||||
Land | $ | 997.1 | $ | 924.6 | ||||
Buildings and improvements | 1,552.60 | 1,451.50 | ||||||
Furniture, fixtures, and equipment | 569.3 | 545.8 | ||||||
3,119.00 | 2,921.90 | |||||||
Less: accumulated depreciation and amortization | (883.7 | ) | (826.8 | ) | ||||
Property and equipment, net | $ | 2,235.30 | $ | 2,095.10 | ||||
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of goodwill and intangible assets, net | ' | |||||||||||||||||||
Goodwill and intangible assets, net, at December 31 consist of the following: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Goodwill | $ | 1,259.60 | $ | 1,237.40 | ||||||||||||||||
Franchise rights - indefinite-lived | $ | 329.3 | $ | 285.7 | ||||||||||||||||
Other intangible assets | 11.1 | 9.9 | ||||||||||||||||||
340.4 | 295.6 | |||||||||||||||||||
Less: accumulated amortization | (5.3 | ) | (4.3 | ) | ||||||||||||||||
Intangible assets, net | $ | 335.1 | $ | 291.3 | ||||||||||||||||
Schedule of goodwill allocated to reporting units and changes in carrying amounts | ' | |||||||||||||||||||
Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the years ended December 31, 2013 and 2012 were as follows: | ||||||||||||||||||||
Domestic | Import | Premium | Corporate | Consolidated | ||||||||||||||||
Luxury | and other | |||||||||||||||||||
Goodwill at January 1, 2012 (1) | $ | 156.4 | $ | 518.4 | $ | 497.4 | $ | — | $ | 1,172.20 | ||||||||||
Acquisitions and other adjustments | 8.8 | 15.8 | 40.6 | — | 65.2 | |||||||||||||||
Goodwill at December 31, 2012 (1) | 165.2 | 534.2 | 538 | — | 1,237.40 | |||||||||||||||
Acquisitions and other adjustments | — | 21.6 | 0.6 | — | 22.2 | |||||||||||||||
Goodwill at December 31, 2013 (1) | $ | 165.2 | $ | 555.8 | $ | 538.6 | $ | — | $ | 1,259.60 | ||||||||||
(1) | Net of accumulated impairment losses of $1.47 billion ($1.25 billion after-tax) associated with our single reporting unit (prior to September 30, 2008, our reporting unit structure was comprised of a single reporting unit) and $140.0 million ($119.0 million after-tax) associated with our Domestic reporting unit, both of which were recorded during the year ended December 31, 2008. |
Insurance_Tables
Insurance (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Insurance [Abstract] | ' | |||||||
Current and long-term insurance reserves | ' | |||||||
At December 31, 2013 and 2012, current and long-term insurance reserves were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows: | ||||||||
2013 | 2012 | |||||||
Insurance reserves - current portion | $ | 24.1 | $ | 22.6 | ||||
Insurance reserves - long-term portion | 42.2 | 38.9 | ||||||
Total insurance reserves | $ | 66.3 | $ | 61.5 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule of Long-term debt | ' | |||||||
Long-term debt at December 31 consisted of the following: | ||||||||
2013 | 2012 | |||||||
6.75% Senior Notes due 2018 | $ | 396.3 | $ | 395.6 | ||||
5.5% Senior Notes due 2020 | 350 | 350 | ||||||
Term loan facility due 2016 | 500 | 500 | ||||||
Revolving credit facility due 2016 | 300 | 540 | ||||||
Mortgage facility(1) | 194.7 | 203.3 | ||||||
Capital leases and other debt | 98.9 | 107.2 | ||||||
1,839.90 | 2,096.10 | |||||||
Less: current maturities | (30.1 | ) | (29.8 | ) | ||||
Long-term debt, net of current maturities | $ | 1,809.80 | $ | 2,066.30 | ||||
(1) | The mortgage facility requires monthly principal and interest payments of $1.7 million based on a fixed amortization schedule with a balloon payment of $155.4 million due November 2017. | |||||||
Schedule of aggregate maturities of non-vehicle long-term debt | ' | |||||||
At December 31, 2013, aggregate maturities of non-vehicle long-term debt were as follows: | ||||||||
Year Ending December 31: | ||||||||
2014 | $ | 30.1 | ||||||
2015 | 24.8 | |||||||
2016 | 812.5 | |||||||
2017 | 174.6 | |||||||
2018 | 398.7 | |||||||
Thereafter | 399.2 | |||||||
$ | 1,839.90 | |||||||
Schedule of leverage ratio and capitalization ratio | ' | |||||||
Under the terms of our credit agreement, at December 31, 2013, our leverage ratio and capitalization ratio were as follows: | ||||||||
December 31, 2013 | ||||||||
Requirement | Actual | |||||||
Leverage ratio | ≤ 3.75x | 2.25x | ||||||
Capitalization ratio | ≤ 65.0% | 57.60% |
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||||||
Schedule of future minimum lease obligations | ' | |||||||
Future minimum lease obligations under non-cancelable real property, equipment, and software leases with initial terms in excess of one year at December 31, 2013, are as follows: | ||||||||
Noncancelable Lease Commitments | Capital (1) | Operating(1) (2) | ||||||
2014 | $ | 24.5 | $ | 42.2 | ||||
2015 | 17.9 | 38 | ||||||
2016 | 4.7 | 36.6 | ||||||
2017 | 11.6 | 34 | ||||||
2018 | 4.1 | 31.7 | ||||||
Thereafter | 39.6 | 241.8 | ||||||
Total minimum lease payments | $ | 102.4 | $ | 424.3 | ||||
Less: Amounts representing interest | (21.1 | ) | ||||||
$ | 81.3 | |||||||
(1) | Amounts for capital and operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. In 2013, these charges totaled approximately $22 million. | |||||||
(2) | Future minimum operating lease payments do not reflect future minimum sublease income of $4.8 million. |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||
Shares Repurchased Under Share Repurchase Program | ' | |||||||||||
A summary of shares repurchased under our share repurchase program authorized by our Board of Directors follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Shares repurchased | 1.1 | 16.6 | 17.1 | |||||||||
Aggregate purchase price | $ | 53.5 | $ | 580.6 | $ | 583.4 | ||||||
Average purchase price per share | $ | 47.37 | $ | 34.89 | $ | 34.14 | ||||||
Common Stock Issued With The Exercise Of Stock Options | ' | |||||||||||
A summary of shares of common stock issued in connection with the exercise of stock options follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Shares issued | 1.1 | 1.7 | 4.4 | |||||||||
Proceeds from the exercise of stock options | $ | 22.7 | $ | 32 | $ | 78.7 | ||||||
Average exercise price per share | $ | 20.31 | $ | 19.33 | $ | 17.74 | ||||||
Restricted Stock Grants And Shares Surrendered to Satisfy Tax Withholdings | ' | |||||||||||
The following table presents a summary of shares of common stock issued in connection with grants of restricted stock and shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock or to pay for an option exercise (in actual number of shares): | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Shares issued | 137,144 | 160,740 | 163,892 | |||||||||
Shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock or to pay for an option exercise | 44,738 | 81,717 | 59,452 | |||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2013 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | ||||||||||||
Schedule of assumptions used relating to valuation of stock options | ' | ||||||||||||
The following table summarizes the assumptions used relating to the valuation of our stock options during 2013, 2012, and 2011: | |||||||||||||
Grant Year | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Risk-free interest rate | 0.58% - 2.24% | 0.49% - 1.40% | 0.62% - 2.81% | ||||||||||
Expected dividend yield | — | — | — | ||||||||||
Expected term | 4 - 7 years | 4 - 7 years | 4 - 7 years | ||||||||||
Expected volatility | 29% - 44% | 39% - 48% | 39% - 50% | ||||||||||
Schedule of stock option activity | ' | ||||||||||||
The following table summarizes stock option activity during 2013: | |||||||||||||
Stock Options | |||||||||||||
Shares | Weighted- | Weighted- | Aggregate | ||||||||||
(in millions) | Average | Average | Intrinsic Value | ||||||||||
Exercise Price | Remaining | (in millions) | |||||||||||
Contractual | |||||||||||||
Term (Years) | |||||||||||||
Options outstanding at January 1 | 6.2 | $ | 24.29 | ||||||||||
Granted (1) | 1 | $ | 46.43 | ||||||||||
Exercised | (1.1 | ) | $ | 20.31 | |||||||||
Forfeited | (0.1 | ) | $ | 35.4 | |||||||||
Expired | — | $ | — | ||||||||||
Options outstanding as of December 31 | 6 | $ | 28.48 | 6.58 | $ | 127.4 | |||||||
Options exercisable at December 31 | 3.5 | $ | 21.23 | 5.48 | $ | 100.7 | |||||||
Options exercisable at December 31 and expected to vest thereafter | 6 | $ | 28.35 | 6.56 | $ | 127.1 | |||||||
Options available for future grants at December 31 | 6 | ||||||||||||
(1) | The options granted during 2013, are related to our employee and non-employee director quarterly stock option award grants in March, June, September, and December 2013. | ||||||||||||
Schedule of weighted average grant-date fair value of stock options granted and total intrinsic value of stock options exercised | ' | ||||||||||||
The weighted average grant-date fair value of stock options granted and total intrinsic value of stock options exercised are summarized in the following table: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average grant-date fair value of stock options granted | $ | 17.93 | $ | 15.25 | $ | 15.69 | |||||||
Total intrinsic value of stock options exercised (in millions) | $ | 31.3 | $ | 36.2 | $ | 81 | |||||||
Schedule of vested and unvested restricted stock | ' | ||||||||||||
The following table summarizes information about vested and unvested restricted stock for 2013: | |||||||||||||
Restricted Stock | |||||||||||||
Shares | Weighted-Average | ||||||||||||
(in millions) | Grant Date | ||||||||||||
Fair Value | |||||||||||||
Nonvested at January 1 | 0.3 | $ | 27.81 | ||||||||||
Granted (1) | 0.1 | $ | 43.45 | ||||||||||
Vested | (0.1 | ) | $ | 24.33 | |||||||||
Forfeited | — | $ | — | ||||||||||
Nonvested at December 31 | 0.3 | $ | 35.76 | ||||||||||
(1) | The restricted stock awards granted during 2013 are related to our employee annual restricted stock award grant in March 2013. | ||||||||||||
Schedule of weighted average grant-date fair value of restricted stock awards granted and total fair value of restricted stock awards vested | ' | ||||||||||||
The weighted average grant-date fair value of restricted stock awards granted and total fair value of restricted stock awards vested are summarized in the following table: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Weighted average grant-date fair value of restricted stock awards granted | $ | 43.45 | $ | 34.31 | $ | 32.5 | |||||||
Total fair value of restricted stock awards vested (in millions) | $ | 6.8 | $ | 5.8 | $ | 5.5 | |||||||
Schedule of total stock-based compensation expense | ' | ||||||||||||
The following table summarizes the total stock-based compensation expense recognized in Selling, General, and Administrative Expenses in the Consolidated Statements of Income and the total recognized tax benefit related thereto: | |||||||||||||
2013 | 2012 | 2011 | |||||||||||
Stock options | $ | 16.6 | $ | 14.8 | $ | 15.2 | |||||||
Restricted stock | 4.7 | 3.8 | 3.2 | ||||||||||
Total stock-based compensation expense | $ | 21.3 | $ | 18.6 | $ | 18.4 | |||||||
Tax benefit related to stock-based compensation expense | $ | 8.1 | $ | 7.1 | $ | 7 | |||||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | |||||||||||||||||||
Dec. 31, 2013 | ||||||||||||||||||||
Income Tax Disclosure [Abstract] | ' | |||||||||||||||||||
Schedule of components of income tax provision (benefit) from continuing operations | ' | |||||||||||||||||||
The components of the income tax provision from continuing operations for the years ended December 31 are as follows: | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Current: | ||||||||||||||||||||
Federal | $ | 189.7 | $ | 146.9 | $ | 125.3 | ||||||||||||||
State | 28.9 | 25.1 | 21.3 | |||||||||||||||||
Federal and state deferred | 13.4 | 27.1 | 31.3 | |||||||||||||||||
Change in valuation allowance, net | (3.7 | ) | 0.1 | (0.2 | ) | |||||||||||||||
Adjustments and settlements | 0.3 | 0.3 | (0.6 | ) | ||||||||||||||||
Income tax provision | $ | 228.6 | $ | 199.5 | $ | 177.1 | ||||||||||||||
Schedule of reconciliation of income tax provision (benefit) | ' | |||||||||||||||||||
A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows: | ||||||||||||||||||||
2013 | % | 2012 | % | 2011 | % | |||||||||||||||
Income tax provision at statutory rate | $ | 211.6 | 35 | $ | 180.9 | 35 | $ | 161.4 | 35 | |||||||||||
Non-deductible expenses (income), net | (0.6 | ) | (0.1 | ) | (0.2 | ) | — | 1.1 | 0.2 | |||||||||||
State income taxes, net of federal benefit | 21.7 | 3.6 | 18.8 | 3.6 | 16.7 | 3.6 | ||||||||||||||
232.7 | 38.5 | 199.5 | 38.6 | 179.2 | 38.8 | |||||||||||||||
Change in valuation allowance, net | (3.7 | ) | (0.6 | ) | 0.1 | — | (0.2 | ) | — | |||||||||||
Adjustments and settlements | 0.3 | — | 0.3 | — | (0.6 | ) | (0.2 | ) | ||||||||||||
Other, net | (0.7 | ) | (0.1 | ) | (0.4 | ) | — | (1.3 | ) | (0.2 | ) | |||||||||
Income tax provision | $ | 228.6 | 37.8 | $ | 199.5 | 38.6 | $ | 177.1 | 38.4 | |||||||||||
Schedule of net deferred income tax asset and liability | ' | |||||||||||||||||||
Deferred income tax asset and liability components at December 31 are as follows: | ||||||||||||||||||||
2013 | 2012 | |||||||||||||||||||
Deferred income tax assets: | ||||||||||||||||||||
Inventory | $ | 24.6 | $ | 20.3 | ||||||||||||||||
Receivable reserves | 3 | 4 | ||||||||||||||||||
Warranty, chargeback, and self-insurance liabilities | 49.2 | 42.8 | ||||||||||||||||||
Other accrued liabilities | 21.6 | 18.7 | ||||||||||||||||||
Deferred compensation | 19.7 | 12.9 | ||||||||||||||||||
Stock-based compensation | 24.1 | 20.6 | ||||||||||||||||||
Loss carryforwards—federal and state | 10.5 | 13.8 | ||||||||||||||||||
Other, net | 12.7 | 15.4 | ||||||||||||||||||
Total deferred income tax assets | 165.4 | 148.5 | ||||||||||||||||||
Valuation allowance | (2.7 | ) | (6.5 | ) | ||||||||||||||||
Deferred income tax assets, net of valuation allowance | 162.7 | 142 | ||||||||||||||||||
Deferred income tax liabilities: | ||||||||||||||||||||
Long-lived assets (intangible assets and property) | (200.2 | ) | (170.1 | ) | ||||||||||||||||
Other, net | (21.3 | ) | (16.6 | ) | ||||||||||||||||
Total deferred income tax liabilities | (221.5 | ) | (186.7 | ) | ||||||||||||||||
Net deferred income tax assets (liabilities) | $ | (58.8 | ) | $ | (44.7 | ) | ||||||||||||||
Schedule of reconciliation of unrecognized tax benefits | ' | |||||||||||||||||||
A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: | ||||||||||||||||||||
2013 | 2012 | 2011 | ||||||||||||||||||
Balance at January 1 | $ | 6.8 | $ | 6.4 | $ | 6.9 | ||||||||||||||
Additions based on tax positions related to the current year | — | — | — | |||||||||||||||||
Additions for tax positions of prior years | 0.8 | 0.5 | 0.9 | |||||||||||||||||
Reductions for tax positions of prior years | (0.2 | ) | — | — | ||||||||||||||||
Reductions for expirations of statute of limitations | (2.2 | ) | — | — | ||||||||||||||||
Settlements | (0.4 | ) | (0.1 | ) | (1.4 | ) | ||||||||||||||
Balance at December 31 | $ | 4.8 | $ | 6.8 | $ | 6.4 | ||||||||||||||
Earnings_Loss_Per_Share_Tables
Earnings (Loss) Per Share (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||
Calculation of Basic and Diluted Earnings Per Share | ' | |||||||||||
The following table presents the calculation of basic and diluted EPS: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Net income from continuing operations | $ | 375.8 | $ | 317.3 | $ | 284.2 | ||||||
Loss from discontinued operations, net of income taxes | (0.9 | ) | (0.9 | ) | (2.8 | ) | ||||||
Net income | $ | 374.9 | $ | 316.4 | $ | 281.4 | ||||||
Weighted average common shares outstanding used in calculating basic EPS | 121.3 | 123.8 | 144.8 | |||||||||
Effect of dilutive stock options | 2 | 2 | 2.5 | |||||||||
Weighted average common shares used in calculating diluted EPS | 123.3 | 125.8 | 147.3 | |||||||||
Basic EPS amounts: | ||||||||||||
Continuing operations | $ | 3.1 | $ | 2.56 | $ | 1.96 | ||||||
Discontinued operations | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | |||
Net income | $ | 3.09 | $ | 2.56 | $ | 1.94 | ||||||
Diluted EPS amounts: | ||||||||||||
Continuing operations | $ | 3.05 | $ | 2.52 | $ | 1.93 | ||||||
Discontinued operations | $ | (0.01 | ) | $ | (0.01 | ) | $ | (0.02 | ) | |||
Net income | $ | 3.04 | $ | 2.52 | $ | 1.91 | ||||||
Anti-Dilutive Options Excluded From The Computation Of Diluted Earnings Per Share | ' | |||||||||||
A summary of anti-dilutive options excluded from the computation of diluted earnings per share is as follows: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Anti-dilutive options excluded from the computation of diluted earnings per share | 0.6 | 0.9 | 0.4 | |||||||||
Financial_Instruments_and_Fair2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended | |||||||
Dec. 31, 2013 | ||||||||
Fair Value Disclosures [Abstract] | ' | |||||||
Summary Of Carrying Values And Fair Values Of Fixed Rate Debt | ' | |||||||
A summary of the aggregate carrying values and fair values of our fixed rate debt is as follows: | ||||||||
December 31, 2013 | December 31, 2012 | |||||||
Carrying value | $ | 1,039.90 | $ | 1,056.10 | ||||
Fair value | $ | 1,135.20 | $ | 1,138.00 | ||||
Chargeback_Reserves_Tables
Chargeback Reserves (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Chargeback Reserves [Abstract] | ' | |||||||||||
Schedule of estimated chargeback liability | ' | |||||||||||
The following is a rollforward of our estimated chargeback liability for each of the three years presented in our Consolidated Financial Statements: | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Balance - January 1 | $ | 56 | $ | 46.2 | $ | 42.5 | ||||||
Add: Provisions | 64.4 | 52.9 | 39.9 | |||||||||
Deduct: Chargebacks | (52.8 | ) | (43.1 | ) | (36.2 | ) | ||||||
Balance - December 31 | $ | 67.6 | $ | 56 | $ | 46.2 | ||||||
Segment_Information_Tables
Segment Information (Tables) | 12 Months Ended | |||||||||||
Dec. 31, 2013 | ||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||
Reconciliation of revenue from segments to consolidated | ' | |||||||||||
Reportable segment revenue, segment income, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures are as follows: | ||||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Revenues: | ||||||||||||
Domestic | $ | 5,835.30 | $ | 5,131.60 | $ | 4,655.40 | ||||||
Import | 6,375.00 | 5,827.50 | 4,933.30 | |||||||||
Premium Luxury | 5,152.30 | 4,553.30 | 4,096.40 | |||||||||
Total segment revenue | 17,362.60 | 15,512.40 | 13,685.10 | |||||||||
Corporate and other | 155 | 155.1 | 147.2 | |||||||||
Total consolidated revenue | $ | 17,517.60 | $ | 15,667.50 | $ | 13,832.30 | ||||||
Reconciliation of segment income (loss) to consolidated income from continuing operations before income taxes | ' | |||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Segment income*: | ||||||||||||
Domestic | $ | 246.6 | $ | 209.4 | $ | 180 | ||||||
Import | 280.1 | 257.9 | 227.1 | |||||||||
Premium Luxury | 321.4 | 270.4 | 244.1 | |||||||||
Total segment income | 848.1 | 737.7 | 651.2 | |||||||||
Corporate and other | (161.2 | ) | (137.9 | ) | (121.9 | ) | ||||||
Other interest expense | (88.3 | ) | (86.9 | ) | (66.0 | ) | ||||||
Loss on debt extinguishment | — | — | (2.2 | ) | ||||||||
Interest income | 0.2 | 0.3 | 0.7 | |||||||||
Other income (losses), net | 5.6 | 3.6 | (0.5 | ) | ||||||||
Income from continuing operations before income taxes | $ | 604.4 | $ | 516.8 | $ | 461.3 | ||||||
*Segment income for each of our segments is defined as operating income less floorplan interest expense. | ||||||||||||
Reconciliation of floorplan interest expense, depreciation and amortization, and capital expenditures from segments to consolidated | ' | |||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Capital expenditures: | ||||||||||||
Domestic | $ | 61.9 | $ | 69.5 | $ | 31.7 | ||||||
Import | 76.1 | 55.2 | 60.6 | |||||||||
Premium Luxury | 45.5 | 33.1 | 55.5 | |||||||||
Corporate and other | 23.7 | 25.8 | 10.3 | |||||||||
Total capital expenditures | $ | 207.2 | $ | 183.6 | $ | 158.1 | ||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Floorplan interest expense: | ||||||||||||
Domestic | $ | 23.7 | $ | 20.2 | $ | 20.4 | ||||||
Import | 16.3 | 14.2 | 11.2 | |||||||||
Premium Luxury | 12.6 | 10.7 | 9.7 | |||||||||
Corporate and other | 0.8 | 0.4 | 1.4 | |||||||||
Total floorplan interest expense | $ | 53.4 | $ | 45.5 | $ | 42.7 | ||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Depreciation and amortization: | ||||||||||||
Domestic | $ | 25.1 | $ | 23 | $ | 20.7 | ||||||
Import | 28.1 | 25 | 22.4 | |||||||||
Premium Luxury | 26.9 | 25.1 | 23.4 | |||||||||
Corporate and other | 15.2 | 14.2 | 17.2 | |||||||||
Total depreciation and amortization | $ | 95.3 | $ | 87.3 | $ | 83.7 | ||||||
Reconciliation of assets from segments to consolidated | ' | |||||||||||
Years Ended December 31, | ||||||||||||
2013 | 2012 | 2011 | ||||||||||
Assets: | ||||||||||||
Domestic | $ | 2,143.10 | $ | 1,895.00 | $ | 1,539.10 | ||||||
Import | 2,030.40 | 1,787.40 | 1,487.60 | |||||||||
Premium Luxury | 1,633.60 | 1,541.60 | 1,295.00 | |||||||||
Corporate and other: | ||||||||||||
Goodwill | 1,259.60 | 1,237.40 | 1,172.20 | |||||||||
Franchise rights | 329.3 | 285.7 | 212.6 | |||||||||
Other Corporate and other assets | 518.1 | 455.9 | 492.3 | |||||||||
Total assets | $ | 7,914.10 | $ | 7,203.00 | $ | 6,198.80 | ||||||
Multiemployer_Pension_Plans_Ta
Multiemployer Pension Plans (Tables) | 12 Months Ended | ||||||||||||||||||||||
Dec. 31, 2013 | |||||||||||||||||||||||
Multiemployer Plans [Abstract] | ' | ||||||||||||||||||||||
Schedule of multiemployer plans | ' | ||||||||||||||||||||||
One of the multiemployer pension plans in which we participate is designated as being in “red zone” status, as defined by the Pension Protection Act (PPA) of 2006. Our participation in this plan for the year ended December 31, 2013, is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (EIN) and the three-digit plan number. The most recent PPA zone status available in 2013 and 2012 is for the plan’s year end at December 31, 2012, and December 31, 2011, respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The last column lists the expiration date of the collective-bargaining agreements to which the plan is subject. A rehabilitation plan has been implemented for this plan. There have been no significant changes that affect the comparability of 2013, 2012, and 2011 contributions. | |||||||||||||||||||||||
Pension Protection Act Zone Status | Contributions of AutoNation | Expiration Date of Collective-Bargaining Agreement | |||||||||||||||||||||
($ in millions) (1) | |||||||||||||||||||||||
Pension Fund | EIN/Pension PlanNumber | 2013 | 2012 | 2013 | 2012 | 2011 | Surcharge Imposed | ||||||||||||||||
Automotive Industries Pension Plan | 94-1133245 - 001 | Red | Red | $ | 0.7 | $ | 0.6 | $ | 0.5 | No | -2 | ||||||||||||
Other funds | 0.4 | 0.3 | 0.2 | ||||||||||||||||||||
Total contributions | $ | 1.1 | $ | 0.9 | $ | 0.7 | |||||||||||||||||
(1) | Our stores were not listed in the Automotive Industries Pension Plan’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2012 or 2011. | ||||||||||||||||||||||
(2) | We are party to two collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. One expired May 31, 2011, and one expired June 30, 2011, and both are currently extended during collective bargaining for new agreements. |
Description_of_Business_and_Su2
Description of Business and Summary of Significant Accounting Policies (Organization and Business, Inventory) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
brand | ||
franchises | ||
stores | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' | ' |
Owned and operated new vehicle franchises | 269 | ' |
Number of stores | 228 | ' |
Number of brands | 33 | ' |
Percentage of new vehicle sales core brand vehicles | 95.00% | ' |
Floorplan interest assistance, inventory cost reduction | $19.70 | $15.80 |
Description_of_Business_and_Su3
Description of Business and Summary of Significant Accounting Policies (Property and Equipment Net) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Millions, unless otherwise specified | Carrying Value [Member] | Carrying Value [Member] | Carrying Value [Member] | Carrying Value [Member] | Long Lived Assets, Fair Value Disclosure, Impairment Loss [Member] | Long Lived Assets, Fair Value Disclosure, Impairment Loss [Member] | Long Lived Assets, Fair Value Disclosure, Impairment Loss [Member] | Long Lived Assets, Fair Value Disclosure, Impairment Loss [Member] | Long Lived Assets, Fair Value Disclosure, Impairment Loss [Member] | Buildings and improvements [Member] | Buildings and improvements [Member] | Furniture, fixtures, and equipment [Member] | Furniture, fixtures, and equipment [Member] | Corporate and Other [Member] |
Continuing Operations [Member] | Continuing Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | Nonrecurring [Member] | Carrying Value [Member] | Minimum [Member] | Maximum [Member] | Minimum [Member] | Maximum [Member] | Continuing Operations [Member] | |
Continuing Operations [Member] | Continuing Operations [Member] | Discontinued Operations [Member] | Discontinued Operations [Member] | Nonrecurring [Member] | ||||||||||
Discontinued Operations [Member] | ||||||||||||||
Property, Plant and Equipment [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Property and equipment estimated useful life | ' | ' | ' | ' | ' | ' | ' | ' | ' | '5 years | '40 years | '3 years | '12 years | ' |
Impairment of long-lived assets held and used | ' | ' | ' | ' | $0.70 | $0.80 | ' | ' | ' | ' | ' | ' | ' | ' |
Long-lived assets held for sale | 59.8 | 70.4 | 34.5 | 43.2 | ' | ' | ' | ' | 3.8 | ' | ' | ' | ' | ' |
Impairment of long-lived assets held for sale | ' | ' | ' | ' | 0 | 0 | 0 | 0.1 | ' | ' | ' | ' | ' | ' |
Gain on sale of property held for sale | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8.1 |
Gain on sale of property held for sale, net of tax | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $5 |
Description_of_Business_and_Su4
Description of Business and Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Franchise agreements, minimal contractual terms (in years) | '1 year | ' | ' |
Goodwill impairment | $0 | $0 | $0 |
Franchise rights impairment | 0 | 4.2 | 0 |
Goodwill [Member] | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Date of annual goodwill and indefinite lived intangible assets impairment test | 'April 30 | 'April 30 | 'April 30 |
Franchise rights [Member] | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Date of annual goodwill and indefinite lived intangible assets impairment test | 'April 30 | 'April 30 | 'April 30 |
Maximum [Member] | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Other intangibles, useful life | '29 years | ' | ' |
Minimum [Member] | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Other intangibles, useful life | '3 years | ' | ' |
Nonrecurring [Member] | Franchise rights [Member] | ' | ' | ' |
Goodwill and Intangible Assets [Line Items] | ' | ' | ' |
Franchise rights impairment | 0 | 4.2 | 0 |
Franchise rights impairment, after tax | ' | $2.60 | ' |
Description_of_Business_and_Su5
Description of Business and Summary of Significant Accounting Policies (Employee Savings Plans) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Matching contribution, 401(k) plan | $5.20 | $3.50 | $2.10 |
Balances due to participants | 51.7 | 40.6 | ' |
Employer matching contribution [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Matching contributions to employee participants | $0.50 | $0.50 | $0.60 |
Deferred compensation arrangement with individual matching contribution annual vesting years two and three | 33.00% | ' | ' |
Deferred compensation arrangement with individual matching contribution annual vesting portion, year one | 33.00% | ' | ' |
Employer discretionary contribution [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
Employer contributions vesting periods (in years) | '3 years | ' | ' |
Employees Hired Subsequent to January 1, 2011 [Member] | ' | ' | ' |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ' | ' | ' |
401(k) plan matching contribution requisite service period | '3 years | ' | ' |
Description_of_Business_and_Su6
Description of Business and Summary of Significant Accounting Policies (Revenue Recognition, Advertising) (Details) (USD $) | 12 Months Ended | ||||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2010 |
Chargeback Reserves [Member] | Chargeback Reserves [Member] | Chargeback Reserves [Member] | Chargeback Reserves [Member] | ||||
Revenue Recognition [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Chargeback liabilities | ' | ' | ' | $67.60 | $56 | $46.20 | $42.50 |
Advertising [Abstract] | ' | ' | ' | ' | ' | ' | ' |
Advertising expense, Net | 166.4 | 135.7 | 130.2 | ' | ' | ' | ' |
Manufacturer advertising reimbursements | $42.40 | $38.30 | $28.20 | ' | ' | ' | ' |
Receivables_Net_Components_of_
Receivables, Net (Components of Receivables, Net of Allowance for Doubtful Accounts) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ' | ' |
Trade receivables | $110.90 | $97.60 |
Manufacturer receivables | 172.9 | 159.9 |
Other | 36.9 | 39.4 |
Trade, manufacturer and other receivables, gross | 320.7 | 296.9 |
Less: Allowances | -4 | -3.4 |
Trade, manufacturer and other receivables, net | 316.7 | 293.5 |
Contracts-in-transit and vehicle receivables | 424.2 | 404.9 |
Receivables, net | $740.90 | $698.40 |
Inventory_and_Vehicle_Floorpla2
Inventory and Vehicle Floorplan Payable (Components of Inventory) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Inventory | $2,827.20 | $2,396.90 |
New Vehicle [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | 2,330.80 | 1,938 |
Used Vehicle [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | 346.5 | 318.7 |
Parts, Accessories, And Other [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | $149.90 | $140.20 |
Inventory_and_Vehicle_Floorpla3
Inventory and Vehicle Floorplan Payable (Components of Vehicle Floorplan Payable) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Floorplan Payable [Line Items] | ' | ' |
Vehicle floorplan payable | $3,029 | $2,540.20 |
Trade [Member] | ' | ' |
Floorplan Payable [Line Items] | ' | ' |
Vehicle floorplan payable | 2,130.10 | 1,766.30 |
Non-Trade [Member] | ' | ' |
Floorplan Payable [Line Items] | ' | ' |
Vehicle floorplan payable | $898.90 | $773.90 |
Inventory_and_Vehicle_Floorpla4
Inventory and Vehicle Floorplan Payable (Narrative) (Details) (USD $) | 12 Months Ended | |
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 |
Floorplan Payable [Line Items] | ' | ' |
Vehicle floorplan facilities, amount outstanding | $3,029 | 2,540.20 |
Used vehicle floorplan facilities, current borrowing capacity | 50 | ' |
Used vehicle floorplan facilities, remaining borrowing capacity | 97.7 | ' |
Used Vehicle Floorplan Facilities [Member] | ' | ' |
Floorplan Payable [Line Items] | ' | ' |
Vehicle floorplan facilities, amount outstanding | 177.3 | ' |
Vehicle floorplan facilities, maximum borrowing capacity | 275 | ' |
Vehicle floorplan facilities, average LIBOR-based interest rates | 1.80% | 2.00% |
New Vehicle Floorplan Facilities [Member] | ' | ' |
Floorplan Payable [Line Items] | ' | ' |
Vehicle floorplan facilities, amount outstanding | 2,900 | ' |
Vehicle floorplan facilities, maximum borrowing capacity | $3,300 | ' |
Vehicle floorplan facilities, average LIBOR-based interest rates | 1.90% | 2.10% |
Property_and_Equipment_Net_Det
Property and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $3,119 | $2,921.90 | ' |
Less: accumulated depreciation and amortization | -883.7 | -826.8 | ' |
Property and equipment, net | 2,235.30 | 2,095.10 | ' |
Interest Costs Capitalized | 0.7 | 0.6 | 1 |
Land [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 997.1 | 924.6 | ' |
Buildings and improvements [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | 1,552.60 | 1,451.50 | ' |
Furniture, fixtures, and equipment [Member] | ' | ' | ' |
Property, Plant and Equipment [Line Items] | ' | ' | ' |
Property and equipment, gross | $569.30 | $545.80 | ' |
Goodwill_and_Intangible_Assets3
Goodwill and Intangible Assets, Net (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
In Millions, unless otherwise specified | ||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | ' | ' | |||
Goodwill | $1,259.60 | [1] | $1,237.40 | [1] | $1,172.20 | [1] |
Indefinite-Lived Franchise Rights | 329.3 | 285.7 | ' | |||
Other intangibles | 11.1 | 9.9 | ' | |||
Intangible assets, gross | 340.4 | 295.6 | ' | |||
Less: accumulated amortization | -5.3 | -4.3 | ' | |||
Intangible assets, net | $335.10 | $291.30 | ' | |||
[1] | Net of accumulated impairment losses of $1.47 billion ($1.25 billion after-tax) associated with our single reporting unit (prior to September 30, 2008, our reporting unit structure was comprised of a single reporting unit) and $140.0Â million ($119.0 million after-tax) associated with our Domestic reporting unit, both of which were recorded during the year ended December 31, 2008. |
Goodwill_and_Intangible_Assets4
Goodwill and Intangible Assets (Goodwill) (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Goodwill [Line Items] | ' | ' | ' | |||
Goodwill impairment | $0 | $0 | $0 | |||
Goodwill [Roll Forward] | ' | ' | ' | |||
Goodwill, beginning balance | 1,237.40 | [1] | 1,172.20 | [1] | ' | |
Acquisitions and other adjustments | 22.2 | 65.2 | ' | |||
Goodwill, ending balance | 1,259.60 | [1] | 1,237.40 | [1] | 1,172.20 | [1] |
Accumulated impairment losses | 1,470 | 1,470 | 1,470 | |||
Accumulated impairment losses, after-tax | 1,250 | 1,250 | 1,250 | |||
Goodwill | 1,259.60 | [1] | 1,237.40 | [1] | 1,172.20 | [1] |
Goodwill [Member] | ' | ' | ' | |||
Goodwill [Line Items] | ' | ' | ' | |||
Date of annual goodwill and indefinite lived intangible assets impairment test | 'April 30 | 'April 30 | 'April 30 | |||
Reporting Unit, Domestic [Member] | ' | ' | ' | |||
Goodwill [Roll Forward] | ' | ' | ' | |||
Goodwill, beginning balance | 165.2 | [1] | 156.4 | [1] | ' | |
Acquisitions and other adjustments | 0 | 8.8 | ' | |||
Goodwill, ending balance | 165.2 | [1] | 165.2 | [1] | ' | |
Accumulated impairment losses | 140 | 140 | 140 | |||
Accumulated impairment losses, after-tax | 119 | 119 | 119 | |||
Goodwill | 165.2 | [1] | 165.2 | [1] | ' | |
Reporting Unit, Import [Member] | ' | ' | ' | |||
Goodwill [Roll Forward] | ' | ' | ' | |||
Goodwill, beginning balance | 534.2 | [1] | 518.4 | [1] | ' | |
Acquisitions and other adjustments | 21.6 | 15.8 | ' | |||
Goodwill, ending balance | 555.8 | [1] | 534.2 | [1] | ' | |
Goodwill | 555.8 | [1] | 534.2 | [1] | ' | |
Reporting Unit, Premium Luxury [Member] | ' | ' | ' | |||
Goodwill [Roll Forward] | ' | ' | ' | |||
Goodwill, beginning balance | 538 | [1] | 497.4 | [1] | ' | |
Acquisitions and other adjustments | 0.6 | 40.6 | ' | |||
Goodwill, ending balance | 538.6 | [1] | 538 | [1] | ' | |
Goodwill | 538.6 | [1] | 538 | [1] | ' | |
Goodwill Corporate and Other [Member] | ' | ' | ' | |||
Goodwill [Roll Forward] | ' | ' | ' | |||
Goodwill, beginning balance | 0 | [1] | 0 | [1] | ' | |
Acquisitions and other adjustments | 0 | 0 | ' | |||
Goodwill, ending balance | 0 | [1] | 0 | [1] | ' | |
Goodwill | $0 | [1] | $0 | [1] | ' | |
[1] | Net of accumulated impairment losses of $1.47 billion ($1.25 billion after-tax) associated with our single reporting unit (prior to September 30, 2008, our reporting unit structure was comprised of a single reporting unit) and $140.0Â million ($119.0 million after-tax) associated with our Domestic reporting unit, both of which were recorded during the year ended December 31, 2008. |
Goodwill_and_Intangible_Assets5
Goodwill and Intangible Assets (Intangible Assets) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Indefinite-lived Intangible Assets by Segment [Line Items] | ' | ' | ' |
Franchise rights impairment | $0 | $4.20 | $0 |
Franchise rights - indefinite-lived | 329.3 | 285.7 | ' |
Franchise rights [Member] | ' | ' | ' |
Indefinite-lived Intangible Assets by Segment [Line Items] | ' | ' | ' |
Date of annual goodwill and indefinite lived intangible assets impairment test | 'April 30 | 'April 30 | 'April 30 |
Nonrecurring [Member] | Franchise rights [Member] | ' | ' | ' |
Indefinite-lived Intangible Assets by Segment [Line Items] | ' | ' | ' |
Franchise rights impairment | 0 | 4.2 | 0 |
Franchise rights impairment, after tax | ' | 2.6 | ' |
Operating Segments, Domestic [Member] | ' | ' | ' |
Indefinite-lived Intangible Assets by Segment [Line Items] | ' | ' | ' |
Franchise rights - indefinite-lived | 22.8 | ' | ' |
Operating Segments, Import [Member] | ' | ' | ' |
Indefinite-lived Intangible Assets by Segment [Line Items] | ' | ' | ' |
Franchise rights - indefinite-lived | 122.5 | ' | ' |
Operating Segments, Premium Luxury [Member] | ' | ' | ' |
Indefinite-lived Intangible Assets by Segment [Line Items] | ' | ' | ' |
Franchise rights - indefinite-lived | $184 | ' | ' |
Insurance_Details
Insurance (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Insurance reserves - current portion | $429.70 | $414.50 |
Insurance reserves - long-term portion | 174.3 | 157.1 |
Insurance reserves [Member] | ' | ' |
Valuation and Qualifying Accounts Disclosure [Line Items] | ' | ' |
Insurance reserves - current portion | 24.1 | 22.6 |
Insurance reserves - long-term portion | 42.2 | 38.9 |
Total insurance reserves | $66.30 | $61.50 |
LongTerm_Debt_Details
Long-Term Debt (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | ||
In Millions, unless otherwise specified | 6.75% Senior Notes Due 2018 [Member] | 6.75% Senior Notes Due 2018 [Member] | 5.5% Senior Notes Due 2020 [Member] | 5.5% Senior Notes Due 2020 [Member] | Term loan facility due 2016 [Member] | Term loan facility due 2016 [Member] | Revolving credit facility due 2016 [Member] | Revolving credit facility due 2016 [Member] | Mortgage Facility [Member] | Mortgage Facility [Member] | Mortgage Facility [Member] | Capital Leases and Other Debt [Member] | Capital Leases and Other Debt [Member] | ||||
Secured Debt [Member] | |||||||||||||||||
Debt Instruments [Abstract] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Senior Notes | ' | ' | $396.30 | $395.60 | $350 | $350 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Term loan facility | ' | ' | ' | ' | ' | ' | 500 | 500 | ' | ' | ' | ' | ' | ' | ' | ||
Revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | 300 | 540 | ' | ' | ' | ' | ' | ||
Mortgage facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 194.7 | [1] | 203.3 | [1] | ' | ' | ' |
Capital leases and other debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 98.9 | 107.2 | ||
Debt and capital lease obligations | 1,839.90 | 2,096.10 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Less: current maturities | -30.1 | -29.8 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term debt, net of current maturities | 1,809.80 | 2,066.30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Monthly principal and interest payments on mortgage facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.7 | ' | ' | ||
Balloon payment for mortgage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $155.40 | ' | ' | ||
Debt instrument, maturity date | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 30-Nov-17 | ' | ' | ||
[1] | The mortgage facility requires monthly principal and interest payments of $1.7 million based on a fixed amortization schedule with a balloon payment of $155.4 million due November 2017. |
LongTerm_Debt_Maturities_of_Lo
Long-Term Debt (Maturities of Long-Term Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Maturities of Long-term Debt [Abstract] | ' | ' |
2014 | $30.10 | ' |
2015 | 24.8 | ' |
2016 | 812.5 | ' |
2017 | 174.6 | ' |
2018 | 398.7 | ' |
Thereafter | 399.2 | ' |
Debt and capital lease obligations | $1,839.90 | $2,096.10 |
LongTerm_Debt_Senior_Unsecured
Long-Term Debt (Senior Unsecured Notes and Credit Agreement) (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Debt Instrument [Line Items] | ' | ' | ' |
Letters of credit, amount outstanding | $45,600,000 | ' | ' |
Loss on debt extinguishment | 0 | 0 | 2,200,000 |
Write-off of deferred debt issuance costs | 0 | 0 | 400,000 |
Leverage Ratio, minimum threshold, current credit spread | 2 | ' | ' |
Leverage ratio, maximum threshold, current credit spread | 3.25 | ' | ' |
Leverage ratio, minimum threshold, increase in credit spread | 3.25 | ' | ' |
5.5% Senior Notes Due 2020 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior Notes | 350,000,000 | 350,000,000 | ' |
6.75% Senior Notes Due 2018 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Senior Notes | 396,300,000 | 395,600,000 | ' |
Revolving credit facility due 2016 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Maximum borrowing capacity under revolving credit facility | 1,200,000,000 | ' | ' |
Revolving credit facility, amount outstanding | 300,000,000 | 540,000,000 | ' |
Revolving credit facilities letter of credit sublimit | 200,000,000 | ' | ' |
Additional borrowing capacity under revolving credit facility | 854,400,000 | ' | ' |
Term loan facility due 2016 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Term loan facility | $500,000,000 | $500,000,000 | ' |
Senior Notes [Member] | 5.5% Senior Notes Due 2020 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Percentage interest on debt instrument | 5.50% | ' | ' |
Maximum percentage of principal that can be redeemed with net cash proceeds from common stock offering | 35.00% | ' | ' |
Redemption payment as a percentage of principal cash from common stock offering | 105.50% | ' | ' |
Debt instrument, maturity date | 1-Feb-20 | ' | ' |
Senior Notes [Member] | 6.75% Senior Notes Due 2018 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Percentage interest on debt instrument | 6.75% | ' | ' |
Debt instrument, maturity date | 15-Apr-18 | ' | ' |
Loans Payable [Member] | Term loan facility due 2016 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, maturity date | 7-Dec-16 | ' | ' |
Basis spread on variable interest rates | 1.75% | ' | ' |
Impact on credit spread from increase in leverage ratio | 0.25% | ' | ' |
Line of Credit [Member] | Revolving credit facility due 2016 [Member] | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' |
Debt instrument, maturity date | 7-Dec-16 | ' | ' |
Basis spread on variable interest rates | 1.75% | ' | ' |
Commitment fee on undrawn amounts | 0.30% | ' | ' |
Impact on credit spread from increase in leverage ratio | 0.25% | ' | ' |
LongTerm_Debt_Other_Debt_Detai
Long-Term Debt (Other Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2013 | ||
In Millions, unless otherwise specified | Mortgage Facility [Member] | Mortgage Facility [Member] | Capital Leases and Other Debt [Member] | Capital Leases and Other Debt [Member] | Secured Debt [Member] | ||
Mortgage Facility [Member] | |||||||
years | |||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ||
Mortgage facility | $194.70 | [1] | $203.30 | [1] | ' | ' | ' |
Debt instrument, maturity date | ' | ' | ' | ' | 30-Nov-17 | ||
Mortgage facility, fixed interest rate | ' | ' | ' | ' | 5.86% | ||
Number of years of mortgage loans | ' | ' | ' | ' | 10 | ||
Monthly principal and interest payments on mortgage facility | ' | ' | ' | ' | 1.7 | ||
Balloon payment for mortgage | ' | ' | ' | ' | 155.4 | ||
Capital leases and other debt | ' | ' | $98.90 | $107.20 | ' | ||
[1] | The mortgage facility requires monthly principal and interest payments of $1.7 million based on a fixed amortization schedule with a balloon payment of $155.4 million due November 2017. |
LongTerm_Debt_Restrictions_and
Long-Term Debt (Restrictions and Covenants) (Details) (USD $) | Dec. 31, 2013 |
Debt Instrument [Line Items] | ' |
The maximum threshold of letters of credit excluded from the leverage ratio calculation | $150,000,000 |
Capitalization ratio calculation, additions to shareholders' equity | $1,520,000,000 |
Maximum Ratio Requirement [Member] | ' |
Debt Instrument [Line Items] | ' |
Capitalization ratio | 65.00% |
Leverage ratio | 3.75 |
Debt Covenant, Actual Ratio [Member] | ' |
Debt Instrument [Line Items] | ' |
Capitalization ratio | 57.60% |
Leverage ratio | 2.25 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Lease Commitments) (Details) (USD $) | 12 Months Ended | |||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Operating and Capital Leased Assets [Line Items] [Line Items] | ' | ' | ' | |
Expenses under real property, equipment, and sofware leases | $47.60 | $47.60 | $53.90 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' | |
Noncancelable Lease Commitments, Operating, 2014 | 42.2 | [1],[2] | ' | ' |
Noncancelable Lease Commitments, Operating, 2015 | 38 | [1],[2] | ' | ' |
Noncancelable Lease Commitments, Operating, 2016 | 36.6 | [1],[2] | ' | ' |
Noncancelable Lease Commitments, Operating, 2017 | 34 | [1],[2] | ' | ' |
Noncancelable Lease Commitments, Operating, 2018 | 31.7 | [1],[2] | ' | ' |
Noncancelable Lease Commitments, Operating, Thereafter | 241.8 | [1],[2] | ' | ' |
Noncancelable Lease Commitments, Operating, Total minimum payments | 424.3 | [1],[2] | ' | ' |
Other operating expenses excluded from future minimum lease obligations | 22 | ' | ' | |
Minimum sublease income | 4.8 | ' | ' | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ' | ' | ' | |
Noncancelable Lease Commitments, Capital, 2014 | 24.5 | [2] | ' | ' |
Noncancelable Lease Commitments, Capital, 2015 | 17.9 | [2] | ' | ' |
Noncancelable Lease Commitments, Capital, 2016 | 4.7 | [2] | ' | ' |
Noncancelable Lease Commitments, Capital, 2017 | 11.6 | [2] | ' | ' |
Noncancelable Lease Commitments, Capital, 2018 | 4.1 | [2] | ' | ' |
Noncancelable Lease Commitments, Capital, Thereafter | 39.6 | [2] | ' | ' |
Noncancelable Lease Commitments, Capital, Total minimum payments | 102.4 | [2] | ' | ' |
Noncancelable Lease Commitments, Capital, Amounts representing interest | -21.1 | [2] | ' | ' |
Noncancelable Lease Commitments, Capital, Total | $81.30 | [2] | ' | ' |
[1] | Future minimum operating lease payments do not reflect future minimum sublease income of $4.8 million. | |||
[2] | Amounts for capital and operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. In 2013, these charges totaled approximately $22 million. |
Commitments_and_Contingencies_2
Commitments and Contingencies (Other Matters) (Details) (USD $) | Dec. 31, 2013 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Guarantor obligations, maximum exposure | $39 |
Total surety bonds, letters of credit, and cash deposits | 91.3 |
Letters of credit, amount outstanding | $45.60 |
Shareholders_Equity_Share_Repu
Shareholders' Equity (Share Repurchase) (Details) (USD $) | 12 Months Ended | 1 Months Ended | |||||||||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Jan. 31, 2014 | Feb. 12, 2014 |
Treasury Stock [Member] | Treasury Stock [Member] | Treasury Stock [Member] | Stock Repurchase Program Board Authorized Repurchases [Member] | Stock Repurchase Program Board Authorized Repurchases [Member] | Stock Repurchase Program Board Authorized Repurchases [Member] | Subsequent Event [Member] | Subsequent Event [Member] | ||||
Stock Repurchase Program Board Authorized Repurchases [Member] | Stock Repurchase Program Board Authorized Repurchases [Member] | ||||||||||
Class of Stock [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares repurchased | ' | ' | ' | ' | ' | ' | 1.1 | 16.6 | 17.1 | ' | 2.4 |
Stock Repurchase Program, Authorized Amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250 | ' |
Aggregate purchase price | 55.7 | 582.3 | 584.9 | 55.7 | 582.3 | 584.9 | 53.5 | 580.6 | 583.4 | ' | 115.7 |
Average purchase price per share | ' | ' | ' | ' | ' | ' | $47.37 | $34.89 | $34.14 | ' | $47.92 |
Remaining amount available for share repurchase | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $400 |
Shareholders_Equity_Treasury_a
Shareholders' Equity (Treasury and Preferred Stock) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
Stockholders' Equity Note [Abstract] | ' | ' |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | ' |
Shareholders_Equity_Stock_Opti
Shareholders' Equity (Stock Options Exercised and Restricted Stock Grants) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Stockholders' Equity Note [Abstract] | ' | ' | ' |
Shares issued | 1,100,000 | 1,700,000 | 4,400,000 |
Proceeds from the exercise of stock options | $22.70 | $32 | $78.70 |
Average exercise price per share | $20.31 | $19.33 | $17.74 |
Shares issued | 137,144 | 160,740 | 163,892 |
Shares surrendered to AutoNation to satisfy tax witholding obligations in connection with the vesting of restricted stock or to pay for an option exercise | 44,738 | 81,717 | 59,452 |
StockBased_Compensation_Detail
Stock-Based Compensation (Details) | Dec. 31, 2013 |
2008 Equity and Incentive Plan | Employee [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares authorized | 12,000,000 |
2008 Equity and Incentive Plan | Grant Awards, Other than Options, or Stock Appreciation Rights [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares authorized | 2,000,000 |
2007 Non-Employee Director Plan [Member] | Director [Member] | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Number of shares authorized | 2,000,000 |
StockBased_Compensation_Stock_
Stock-Based Compensation (Stock Options) (Details) (USD $) | 12 Months Ended | |||||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Dec. 02, 2013 | Sep. 03, 2013 | Jun. 03, 2013 | Mar. 01, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' | ' | ' | ' | |
Expected dividend rate | 0.00% | 0.00% | 0.00% | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Exercised, Shares | -1,100,000 | -1,700,000 | -4,400,000 | ' | ' | ' | ' | |
Exercised, Weighted-Average Exercise Price | $20.31 | $19.33 | $17.74 | ' | ' | ' | ' | |
Stock Options [Member] | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | |
Exercise price of options to purchase common stock granted | ' | ' | ' | $48.80 | $47.25 | $46.22 | $43.45 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' | ' | ' | ' | ' | ' | ' | |
Options outstanding, Shares, beginning balance | 6,200,000 | ' | ' | ' | ' | ' | ' | |
Options outstanding, Weighted-Average Exercise Price, beginning balance | $24.29 | ' | ' | ' | ' | ' | ' | |
Granted, Shares | 1,000,000 | [1] | ' | ' | ' | ' | ' | ' |
Granted, Weighted-Average Exercise Price | $46.43 | [1] | ' | ' | ' | ' | ' | ' |
Exercised, Shares | -1,100,000 | ' | ' | ' | ' | ' | ' | |
Exercised, Weighted-Average Exercise Price | $20.31 | ' | ' | ' | ' | ' | ' | |
Forfeited, Shares | -100,000 | ' | ' | ' | ' | ' | ' | |
Forfeited, Weighted-Average Exercise Price | $35.40 | ' | ' | ' | ' | ' | ' | |
Expired, Shares | 0 | ' | ' | ' | ' | ' | ' | |
Expired, Weighted-Average Exercise Price | $0 | ' | ' | ' | ' | ' | ' | |
Options outstanding, Shares, ending balance | 6,000,000 | 6,200,000 | ' | ' | ' | ' | ' | |
Options outstanding, Weighted-Average Exercise Price, ending balance | $28.48 | $24.29 | ' | ' | ' | ' | ' | |
Options outstanding, Weighted-Average Remaining Contractual Term (Years) | '6 years 6 months 29 days | ' | ' | ' | ' | ' | ' | |
Options outstanding, Aggregate Intrinsic Value | $127.40 | ' | ' | ' | ' | ' | ' | |
Options exercisable, Shares | 3,500,000 | ' | ' | ' | ' | ' | ' | |
Options exercisable, Weighted-Average Exercise Price | $21.23 | ' | ' | ' | ' | ' | ' | |
Options exercisable, Weighted-Average Remaining Contractual Term (Years) | '5 years 5 months 23 days | ' | ' | ' | ' | ' | ' | |
Options exercisable, Aggregate Intrinsic Value | 100.7 | ' | ' | ' | ' | ' | ' | |
Options exercisable and expected to vest thereafter, Shares | 6,000,000 | ' | ' | ' | ' | ' | ' | |
Options exercisable and expected to vest thereafter, Weighted-Average Exercise Price | $28.35 | ' | ' | ' | ' | ' | ' | |
Options exercisable and expected to vest thereafter, Weighted-Average Remaining Contractual Term (Years) | '6 years 6 months 22 days | ' | ' | ' | ' | ' | ' | |
Options exercisable and expected to vest thereafter, Aggregate Intrinsic Value | 127.1 | ' | ' | ' | ' | ' | ' | |
Options available for future grants, Shares | 6,000,000 | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ' | ' | ' | ' | ' | ' | ' | |
Weighted average grant-date fair value of stock options granted | $17.93 | $15.25 | $15.69 | ' | ' | ' | ' | |
Total intrinsic value of stock options exercised | $31.30 | $36.20 | $81 | ' | ' | ' | ' | |
Stock Options [Member] | Director [Member] | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | |
Automatic grant of options to purchase common stock (per non-employee director) | ' | ' | ' | 5,000 | 5,000 | 5,000 | 5,000 | |
Expiration period (in years) | '10 years | ' | ' | ' | ' | ' | ' | |
Vesting increments (percentage) | 25.00% | ' | ' | ' | ' | ' | ' | |
Vesting period (in years) | '4 years | ' | ' | ' | ' | ' | ' | |
Stock Options [Member] | Employee [Member] | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | |
Expiration period (in years) | '10 years | ' | ' | ' | ' | ' | ' | |
Vesting increments (percentage) | 25.00% | ' | ' | ' | ' | ' | ' | |
Vesting period (in years) | '4 years | ' | ' | ' | ' | ' | ' | |
Minimum [Member] | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' | ' | ' | ' | |
Risk-free interest rate | 0.58% | 0.49% | 0.62% | ' | ' | ' | ' | |
Expected term | '4 years | '4 years | '4 years | ' | ' | ' | ' | |
Expected volatility rate | 29.00% | 39.00% | 39.00% | ' | ' | ' | ' | |
Maximum [Member] | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ' | ' | ' | ' | ' | ' | ' | |
Risk-free interest rate | 2.24% | 1.40% | 2.81% | ' | ' | ' | ' | |
Expected term | '7 years | '7 years | '7 years | ' | ' | ' | ' | |
Expected volatility rate | 44.00% | 48.00% | 50.00% | ' | ' | ' | ' | |
2008 Equity and Incentive Plan | Employee [Member] | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | |
Number of shares authorized | 12,000,000 | ' | ' | ' | ' | ' | ' | |
Annual Employee Grant, 2013 [Member] | Stock Options [Member] | Employee [Member] | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | |
Number of shares authorized | 800,000 | ' | ' | ' | ' | ' | ' | |
Percentage of total stock option award granted on specific date | ' | ' | ' | 25.00% | 25.00% | 25.00% | 25.00% | |
2007 Non-Employee Director Plan [Member] | Director [Member] | ' | ' | ' | ' | ' | ' | ' | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' | ' | ' | ' | |
Number of shares authorized | 2,000,000 | ' | ' | ' | ' | ' | ' | |
[1] | The options granted during 2013, are related to our employee and non-employee director quarterly stock option award grants in March, June, September, and December 2013. |
StockBased_Compensation_Restri
Stock-Based Compensation (Restricted Stock) (Details) (Restricted Stock [Member], USD $) | 12 Months Ended | |||||
In Millions, except Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Vesting period (in years) | '4 years | ' | ' | |||
Total fair value of vested restricted stock awards | $6.80 | $5.80 | $5.50 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' | ' | ' | |||
Nonvested, Shares, beginning balance | 300,000 | ' | ' | |||
Nonvested, Weighted-Average Grant Date Fair Value, beginning balance | $27.81 | ' | ' | |||
Granted, Shares | 100,000 | [1] | ' | ' | ||
Granted, Weighted-Average Grant Date Fair Value | $43.45 | [1] | $34.31 | [1] | $32.50 | [1] |
Vested, Shares | -100,000 | ' | ' | |||
Vested, Weighted-Average Grant Date Fair Value | $24.33 | ' | ' | |||
Forfeited, Shares | 0 | ' | ' | |||
Forfeited, Weighted-Average Grant Date Fair Value | $0 | ' | ' | |||
Nonvested, Shares, ending balance | 300,000 | 300,000 | ' | |||
Nonvested, Weighted-Average Grant Date Fair Value, ending balance | $35.76 | $27.81 | ' | |||
Annual Employee Grant, 2013 [Member] | ' | ' | ' | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | |||
Number of shares authorized | 100,000 | ' | ' | |||
[1] | The restricted stock awards granted during 2013 are related to our employee annual restricted stock award grant in March 2013. |
StockBased_Compensation_Compen
Stock-Based Compensation (Compensation Expense) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based Compensation | $21.30 | $18.60 | $18.40 |
Tax benefit related to stock-based compensation expense | 8.1 | 7.1 | 7 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | 20.1 | ' | ' |
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | '1 year 7 months 6 days | ' | ' |
Realized tax benefits related to stock options exercised and/or vesting of restricted stock | 14.3 | 15.9 | 32.8 |
Stock Options [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based Compensation | 16.6 | 14.8 | 15.2 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | 13.5 | ' | ' |
Restricted Stock [Member] | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ' | ' | ' |
Share-based Compensation | 4.7 | 3.8 | 3.2 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | $6.60 | ' | ' |
Income_Taxes_Details
Income Taxes (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Current: | ' | ' | ' | ' |
Federal | ' | $189.70 | $146.90 | $125.30 |
State | ' | 28.9 | 25.1 | 21.3 |
Federal and state deferred | ' | 13.4 | 27.1 | 31.3 |
Change in valuation allowance, net | ' | -3.7 | 0.1 | -0.2 |
Adjustments and settlements | ' | 0.3 | 0.3 | -0.6 |
Income tax provision | ' | 228.6 | 199.5 | 177.1 |
Income Tax Expense (Benefit), Continuing Operations, Income Tax Reconciliation [Abstract] | ' | ' | ' | ' |
Income tax provision at statutory rate | ' | 211.6 | 180.9 | 161.4 |
Non-deductible expenses (income), net | ' | -0.6 | -0.2 | 1.1 |
State income taxes, net of federal benefit | ' | 21.7 | 18.8 | 16.7 |
Income tax provision, excluding other reconciling items | ' | 232.7 | 199.5 | 179.2 |
Change in valuation allowance, net | ' | -3.7 | 0.1 | -0.2 |
Adjustments and settlements | ' | 0.3 | 0.3 | -0.6 |
Other, net | ' | -0.7 | -0.4 | -1.3 |
Income tax provision | ' | 228.6 | 199.5 | 177.1 |
Effective Income Tax Rate, Continuing Operations, Tax Rate Reconciliation [Abstract] | ' | ' | ' | ' |
Income tax provision at statutory rate, % | ' | 35.00% | 35.00% | 35.00% |
Non-deductible expenses (income), net, % | ' | -0.10% | 0.00% | 0.20% |
State income taxes, net of federal benefit, % | ' | 3.60% | 3.60% | 3.60% |
Income tax provision, excluding other reconciling items, % | ' | 38.50% | 38.60% | 38.80% |
Change in valuation allowance, net, % | ' | -0.60% | 0.00% | 0.00% |
Adjustments and settlements, % | ' | 0.00% | 0.00% | -0.20% |
Other, net, % | ' | -0.10% | 0.00% | -0.20% |
Income tax provision, % | ' | 37.80% | 38.60% | 38.40% |
Deferred income tax assets: | ' | ' | ' | ' |
Inventory | 24.6 | 24.6 | 20.3 | ' |
Receivable reserves | 3 | 3 | 4 | ' |
Warranty, chargeback and self - insurance liabilities | 49.2 | 49.2 | 42.8 | ' |
Other accrued liabilities | 21.6 | 21.6 | 18.7 | ' |
Deferred compensation | 19.7 | 19.7 | 12.9 | ' |
Stock-based compensation | 24.1 | 24.1 | 20.6 | ' |
Loss carryforwards—federal and state | 10.5 | 10.5 | 13.8 | ' |
Other, net | 12.7 | 12.7 | 15.4 | ' |
Total deferred income tax assets | 165.4 | 165.4 | 148.5 | ' |
Valuation allowance | -2.7 | -2.7 | -6.5 | ' |
Deferred income tax assets, net of valuation allowance | 162.7 | 162.7 | 142 | ' |
Deferred income tax liabilities: | ' | ' | ' | ' |
Long-lived assets (intangibles assets and property) | -200.2 | -200.2 | -170.1 | ' |
Other, net | -21.3 | -21.3 | -16.6 | ' |
Total deferred income tax liabilities | -221.5 | -221.5 | -186.7 | ' |
Net deferred income tax assets (liabilities) | -58.8 | -58.8 | -44.7 | ' |
Deferred Tax Assets, Net, Classification [Abstract] | ' | ' | ' | ' |
Deferred tax assets, net, current | 57.7 | 57.7 | 44.7 | ' |
Deferred tax liabilities, net, noncurrent | 116.5 | 116.5 | 89.4 | ' |
Income taxes payable included in other current liabilities | 8.4 | 8.4 | 3.2 | ' |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ' | ' | ' | ' |
Gross domestic state net operating and capital loss carryforwards | 173.5 | 173.5 | ' | ' |
State tax credits | 4.5 | 4.5 | ' | ' |
Deferred tax asset, loss carryforwards and tax credits | 10.5 | 10.5 | ' | ' |
Valuation allowance related to loss carryforwards | 2.7 | 2.7 | 6.5 | ' |
Valuation allowance, deferred tax asset, change in amount | 3.4 | 3.4 | ' | ' |
Recognized net tax benefits related to adjustments and resolution of certain income tax matters | ' | ' | ' | $1.30 |
Income_Taxes_Contingencies_Det
Income Taxes (Contingencies) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ' | ' | ' |
Balance at January 1 | $6.80 | $6.40 | $6.90 |
Additions based on tax positions related to the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 0.8 | 0.5 | 0.9 |
Reductions for tax positions of prior years | -0.2 | 0 | 0 |
Reductions for expirations of statute of limitations | -2.2 | 0 | 0 |
Settlements | -0.4 | -0.1 | -1.4 |
Balance at December 31 | 4.8 | 6.8 | 6.4 |
Unrecognized tax benefits, accumulated interest and penalties | 5.1 | 4.5 | 4 |
Deferred tax assets related to unrecognized tax benefits | 3.6 | 5.5 | 5.2 |
Net unrecognized tax benefits, associated interest, penalties and deferred tax asset that if resolved would impact effective tax rate | 6.3 | 5.8 | 5.2 |
Recognized interest and penalties | $0.40 | $0.30 | $0.30 |
Earnings_Loss_Per_Share_Weight
Earnings (Loss) Per Share (Weighted Average Common and Common Equivalent Shares) (Details) (USD $) | 12 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Net income from continuing operations | $375.80 | $317.30 | $284.20 |
Loss from discontinued operations, net of income taxes | -0.9 | -0.9 | -2.8 |
NET INCOME | $374.90 | $316.40 | $281.40 |
Weighted average common shares outstanding used in calculating basic earnings per share | 121.3 | 123.8 | 144.8 |
Effect of dilutive stock options | 2 | 2 | 2.5 |
Weighted average common shares used in calculating diluted earnings per share | 123.3 | 125.8 | 147.3 |
Basic EPS amounts | ' | ' | ' |
Continuing operations | $3.10 | $2.56 | $1.96 |
Discontinued operations | ($0.01) | ($0.01) | ($0.02) |
Net income | $3.09 | $2.56 | $1.94 |
Diluted EPS amounts: | ' | ' | ' |
Continuing operations | $3.05 | $2.52 | $1.93 |
Discontinued operations | ($0.01) | ($0.01) | ($0.02) |
Net income | $3.04 | $2.52 | $1.91 |
Earnings_Loss_Per_Share_AntiDi
Earnings (Loss) Per Share (Anti-Dilutive Options Excluded from the Computation of Diluted Earnings Per Share) (Details) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Earnings Per Share [Abstract] | ' | ' | ' |
Anti-dilutive options excluded from the computation of diluted earnings per share | 0.6 | 0.9 | 0.4 |
Divestitures_Details
Divestitures (Details) (USD $) | 12 Months Ended | 3 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | Mar. 31, 2014 |
Subsequent Event [Member] | ||||
Corporate and Other [Member] | ||||
Customer Lead Distribution Business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' | ' | ' |
Cash received from business divestitures, net of cash relinquished | $10.10 | $6.80 | $4.90 | ' |
Loss from discontinued operations, net of income taxes | 0.9 | 0.9 | 2.8 | ' |
Total assets of discontinued operations | 36.7 | 45.4 | ' | ' |
Cash and other consideration received on disposal | ' | ' | ' | 11 |
Gain (loss) on disposal | ' | ' | ' | 8 |
Gain (loss) on disposal, net of taxes | ' | ' | ' | $5 |
Acquisitions_Details
Acquisitions (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
stores | stores | stores | |
Business Combinations [Abstract] | ' | ' | ' |
Number of stores purchased | 5 | 6 | 1 |
Amounts incurred related to acquisitions | $95.70 | $203.70 | $64.20 |
Related_Party_Transactions_Det
Related Party Transactions (Details) (ESL Investments, Inc. [Member]) | Dec. 31, 2013 |
ESL Investments, Inc. [Member] | ' |
Related Party Transaction [Line Items] | ' |
Majority ownership percentage in which agreements with manufacturers eliminate potential adverse consequences | 50.00% |
Cash_Flow_Information_Details
Cash Flow Information (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Supplemental Cash Flow Information [Abstract] | ' | ' | ' |
Capital leases related to acquisitions | $7.80 | ' | ' |
Capital lease and deferred purchase price related to acquisitions | ' | 62.1 | ' |
Property acquired under capital leases | 10.2 | 20.1 | 24.2 |
Accrued purchases of property and equipment | 28.1 | 23.6 | 17.3 |
Interest payments | 136 | 119.6 | 103.6 |
Income tax payments, net of income tax refunds | $200.30 | $147 | $121.10 |
Financial_Instruments_and_Fair3
Financial Instruments and Fair Value Measurements (Summary of Carrying Values and Fair Values of Fixed Rate Debt) (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fixed rate debt | $1,039.90 | $1,056.10 |
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fixed rate debt | $1,135.20 | $1,138 |
Financial_Instruments_and_Fair4
Financial Instruments and Fair Value Measurements (Narrative) (Details) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Fair Value Measurements [Line Items] | ' | ' | ' |
Goodwill impairment | $0 | $0 | $0 |
Franchise rights impairment | 0 | 4.2 | 0 |
Continuing Operations [Member] | Carrying Value [Member] | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' |
Long-lived assets held for sale | 59.8 | 70.4 | ' |
Discontinued Operations [Member] | Carrying Value [Member] | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' |
Long-lived assets held for sale | 34.5 | 43.2 | ' |
Nonrecurring [Member] | Continuing Operations [Member] | Long Lived Assets, Fair Value Disclosure, Impairment Loss [Member] | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' |
Impairment of long-lived assets held and used | 0.7 | 0.8 | ' |
Impairment of long-lived assets held for sale | 0 | 0 | ' |
Nonrecurring [Member] | Discontinued Operations [Member] | Long Lived Assets, Fair Value Disclosure, Impairment Loss [Member] | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' |
Impairment of long-lived assets held for sale | 0 | 0.1 | ' |
Nonrecurring [Member] | Discontinued Operations [Member] | Carrying Value [Member] | Long Lived Assets, Fair Value Disclosure, Impairment Loss [Member] | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' |
Long-lived assets held for sale | ' | 3.8 | ' |
Nonrecurring [Member] | Level 3 [Member] | Discontinued Operations [Member] | Fair Value [Member] | Long Lived Assets, Fair Value Disclosure, Impairment Loss [Member] | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' |
Long-lived assets held for sale | ' | 3.7 | ' |
Goodwill [Member] | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' |
Date of annual goodwill and indefinite lived intangible assets impairment test | 'April 30 | 'April 30 | 'April 30 |
Franchise rights [Member] | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' |
Date of annual goodwill and indefinite lived intangible assets impairment test | 'April 30 | 'April 30 | 'April 30 |
Franchise rights [Member] | Nonrecurring [Member] | ' | ' | ' |
Fair Value Measurements [Line Items] | ' | ' | ' |
Franchise rights impairment | $0 | $4.20 | $0 |
Business_and_Credit_Concentrat1
Business and Credit Concentrations (Details) (USD $) | Dec. 31, 2013 | Dec. 31, 2012 |
In Millions, unless otherwise specified | ||
Business And Credit Concentrations [Abstract] | ' | ' |
Manufacturer receivables | $172.90 | $159.90 |
Chargeback_Reserves_Details
Chargeback Reserves (Details) (Chargeback Reserves [Member], USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
Chargeback Reserves [Member] | ' | ' | ' |
Movement in Valuation Allowances and Reserves [Roll Forward] | ' | ' | ' |
Chargeback liabilities, beginning Balance | $56 | $46.20 | $42.50 |
Add: Provisions | 64.4 | 52.9 | 39.9 |
Deduct: Chargebacks | -52.8 | -43.1 | -36.2 |
Chargeback liabilities, ending Balance | $67.60 | $56 | $46.20 |
Segment_Information_Details
Segment Information (Details) (USD $) | 12 Months Ended | |||||
In Millions, unless otherwise specified | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |||
segments | segments | segments | ||||
Segment Reporting Information [Line Items] | ' | ' | ' | |||
Number of operating segments | 3 | 3 | 3 | |||
Number of reportable segments | 3 | 3 | 3 | |||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | |||
Total revenues | $17,517.60 | $15,667.50 | $13,832.30 | |||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' | |||
Total segment income | 848.1 | [1] | 737.7 | [1] | 651.2 | [1] |
Corporate and other | -161.2 | -137.9 | -121.9 | |||
Other interest expense | -88.3 | -86.9 | -66 | |||
Loss on debt extinguishment | 0 | 0 | -2.2 | |||
Interest income | 0.2 | 0.3 | 0.7 | |||
Other income (losses), net | 5.6 | 3.6 | -0.5 | |||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 604.4 | 516.8 | 461.3 | |||
Floorplan Interest Expense [Abstract] | ' | ' | ' | |||
Floorplan interest expense | 53.4 | 45.5 | 42.7 | |||
Depreciation, Depletion and Amortization [Abstract] | ' | ' | ' | |||
Depreciation and amortization | 95.3 | 87.3 | 83.7 | |||
Assets [Abstract] | ' | ' | ' | |||
Assets | 7,914.10 | 7,203 | 6,198.80 | |||
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ' | ' | ' | |||
Capital expenditures | 207.2 | 183.6 | 158.1 | |||
Operating Segments [Member] | ' | ' | ' | |||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | |||
Total revenues | 17,362.60 | 15,512.40 | 13,685.10 | |||
Operating Segments, Domestic [Member] | ' | ' | ' | |||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | |||
Total revenues | 5,835.30 | 5,131.60 | 4,655.40 | |||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' | |||
Total segment income | 246.6 | [1] | 209.4 | [1] | 180 | [1] |
Floorplan Interest Expense [Abstract] | ' | ' | ' | |||
Floorplan interest expense | 23.7 | 20.2 | 20.4 | |||
Depreciation, Depletion and Amortization [Abstract] | ' | ' | ' | |||
Depreciation and amortization | 25.1 | 23 | 20.7 | |||
Assets [Abstract] | ' | ' | ' | |||
Assets | 2,143.10 | 1,895 | 1,539.10 | |||
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ' | ' | ' | |||
Capital expenditures | 61.9 | 69.5 | 31.7 | |||
Operating Segments, Import [Member] | ' | ' | ' | |||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | |||
Total revenues | 6,375 | 5,827.50 | 4,933.30 | |||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' | |||
Total segment income | 280.1 | [1] | 257.9 | [1] | 227.1 | [1] |
Floorplan Interest Expense [Abstract] | ' | ' | ' | |||
Floorplan interest expense | 16.3 | 14.2 | 11.2 | |||
Depreciation, Depletion and Amortization [Abstract] | ' | ' | ' | |||
Depreciation and amortization | 28.1 | 25 | 22.4 | |||
Assets [Abstract] | ' | ' | ' | |||
Assets | 2,030.40 | 1,787.40 | 1,487.60 | |||
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ' | ' | ' | |||
Capital expenditures | 76.1 | 55.2 | 60.6 | |||
Operating Segments, Premium Luxury [Member] | ' | ' | ' | |||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | |||
Total revenues | 5,152.30 | 4,553.30 | 4,096.40 | |||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ' | ' | ' | |||
Total segment income | 321.4 | [1] | 270.4 | [1] | 244.1 | [1] |
Floorplan Interest Expense [Abstract] | ' | ' | ' | |||
Floorplan interest expense | 12.6 | 10.7 | 9.7 | |||
Depreciation, Depletion and Amortization [Abstract] | ' | ' | ' | |||
Depreciation and amortization | 26.9 | 25.1 | 23.4 | |||
Assets [Abstract] | ' | ' | ' | |||
Assets | 1,633.60 | 1,541.60 | 1,295 | |||
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ' | ' | ' | |||
Capital expenditures | 45.5 | 33.1 | 55.5 | |||
Corporate and Other [Member] | ' | ' | ' | |||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ' | ' | ' | |||
Total revenues | 155 | 155.1 | 147.2 | |||
Floorplan Interest Expense [Abstract] | ' | ' | ' | |||
Floorplan interest expense | 0.8 | 0.4 | 1.4 | |||
Depreciation, Depletion and Amortization [Abstract] | ' | ' | ' | |||
Depreciation and amortization | 15.2 | 14.2 | 17.2 | |||
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ' | ' | ' | |||
Capital expenditures | 23.7 | 25.8 | 10.3 | |||
Goodwill [Member] | Corporate and Other [Member] | ' | ' | ' | |||
Assets [Abstract] | ' | ' | ' | |||
Assets | 1,259.60 | 1,237.40 | 1,172.20 | |||
Franchise rights [Member] | Corporate and Other [Member] | ' | ' | ' | |||
Assets [Abstract] | ' | ' | ' | |||
Assets | 329.3 | 285.7 | 212.6 | |||
Other Corporate and Other Assets [Member] | Corporate and Other [Member] | ' | ' | ' | |||
Assets [Abstract] | ' | ' | ' | |||
Assets | $518.10 | $455.90 | $492.30 | |||
[1] | Segment income for each of our segments is defined as operating income less floorplan interest expense. |
Multiemployer_Pension_Plans_De
Multiemployer Pension Plans (Details) (USD $) | 0 Months Ended | 12 Months Ended | |||
In Millions, unless otherwise specified | Jun. 30, 2011 | 31-May-11 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
agreements | agreements | agreements | |||
Multiemployer Plans [Line Items] | ' | ' | ' | ' | ' |
Number of stores | ' | ' | 228 | ' | ' |
Multiemployer Plans, Pension [Member] | ' | ' | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' | ' | ' |
Number of stores | ' | ' | 5 | ' | ' |
Contributions of AutoNation | ' | ' | $1.10 | $0.90 | $0.70 |
Multiemployer Plans, Pension [Member] | Automotive Industries Pension Plan [Member] | ' | ' | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' | ' | ' |
EIN | ' | ' | '941133245 | ' | ' |
Multiemployer plan number | ' | ' | '001 | ' | ' |
Pension Protection Act Zone Status | ' | ' | 'Red | 'Red | ' |
Contributions of AutoNation | ' | ' | 0.7 | 0.6 | 0.5 |
Surcharge imposed | ' | ' | 'No | ' | ' |
Number of collective-bargaining arrangements that require contributions to the Plan | ' | ' | 2 | ' | ' |
Number of collective-bargaining arrangements expired | 1 | 1 | ' | ' | ' |
Multiemployer Plans, Pension [Member] | Other funds [Member] | ' | ' | ' | ' | ' |
Multiemployer Plans [Line Items] | ' | ' | ' | ' | ' |
Contributions of AutoNation | ' | ' | $0.40 | $0.30 | $0.20 |