Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 27, 2014 | |
Document And Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
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 | ' | 113,143,813 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
ASSETS | ' | ' |
Cash and cash equivalents | $67.50 | $69.20 |
Receivables, net | 651.8 | 740.9 |
Inventory | 2,691.40 | 2,827.20 |
Other current assets | 196.2 | 192.7 |
Total Current Assets | 3,606.90 | 3,830 |
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $942.3 million and $883.7 million, respectively | 2,293.40 | 2,235.30 |
GOODWILL | 1,265.30 | 1,259.60 |
OTHER INTANGIBLE ASSETS, NET | 339.1 | 335.1 |
OTHER ASSETS | 289 | 254.1 |
Total Assets | 7,793.70 | 7,914.10 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' |
Vehicle floorplan payable | 2,774.70 | 3,029 |
Accounts payable | 251.1 | 263 |
Current maturities of long-term debt | 17.5 | 30.1 |
Other current liabilities | 499.2 | 429.7 |
Total Current Liabilities | 3,542.50 | 3,751.80 |
LONG-TERM DEBT, NET OF CURRENT MATURITIES | 1,915.50 | 1,809.80 |
DEFERRED INCOME TAXES | 129.4 | 116.5 |
OTHER LIABILITIES | 194.3 | 174.3 |
COMMITMENTS AND CONTINGENCIES (Note 11) | ' | ' |
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 September 30, 2014, and December 31, 2013, including shares held in treasury | 1.6 | 1.6 |
Additional paid-in capital | 55.6 | 42.8 |
Retained earnings | 3,639.90 | 3,337.90 |
Treasury stock, at cost; 49,033,894 and 42,646,753 shares held, respectively | -1,685.10 | -1,320.60 |
Total Shareholders’ Equity | 2,012 | 2,061.70 |
Total Liabilities and Shareholders’ Equity | 7,793.70 | 7,914.10 |
Trade [Member] | ' | ' |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' |
Vehicle floorplan payable | 1,912.60 | 2,130.10 |
Non-Trade [Member] | ' | ' |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ' | ' |
Vehicle floorplan payable | $862.10 | $898.90 |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
PROPERTY AND EQUIPMENT, accumulated depreciation | $942.30 | $883.70 |
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 | 49,033,894 | 42,646,753 |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Income Statements (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
TOTAL REVENUE | $4,909 | $4,470.80 | $14,061 | $12,993.70 |
TOTAL COST OF SALES (excluding depreciation shown below) | 4,156.10 | 3,774.20 | 11,855.80 | 10,937 |
TOTAL GROSS PROFIT | 752.9 | 696.6 | 2,205.20 | 2,056.70 |
Selling, general, and administrative expenses | 522.3 | 485.1 | 1,547.60 | 1,452.50 |
Depreciation and amortization | 27.2 | 24.1 | 79 | 70.1 |
Other expenses (income), net | -4 | 0.2 | -15.7 | -3.4 |
OPERATING INCOME | 207.4 | 187.2 | 594.3 | 537.5 |
Non-operating income (expense) items: | ' | ' | ' | ' |
Floorplan interest expense | -13.1 | -12.7 | -39.6 | -39.2 |
Other interest expense | -21.7 | -22.3 | -64.6 | -66.6 |
Interest income | 0.1 | 0.1 | 0.2 | 0.2 |
Other income (loss), net | 1.1 | -0.7 | 3.5 | 2.2 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 173.8 | 151.6 | 493.8 | 434.1 |
Income tax provision | 67.1 | 58.8 | 190.9 | 168 |
NET INCOME FROM CONTINUING OPERATIONS | 106.7 | 92.8 | 302.9 | 266.1 |
Loss from discontinued operations, net of income taxes | -0.2 | -0.2 | -0.9 | -0.6 |
NET INCOME | 106.5 | 92.6 | 302 | 265.5 |
BASIC EARNINGS (LOSS) PER SHARE: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.91 | $0.76 | $2.56 | $2.19 |
Discontinued operations (in dollars per share) | $0 | $0 | ($0.01) | $0 |
Net income (in dollars per share) | $0.91 | $0.76 | $2.55 | $2.19 |
Weighted average common shares outstanding (in shares) | 117 | 121.5 | 118.5 | 121.3 |
DILUTED EARNINGS (LOSS) PER SHARE: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.90 | $0.75 | $2.52 | $2.16 |
Discontinued operations (in dollars per share) | $0 | $0 | ($0.01) | $0 |
Net income (in dollars per share) | $0.90 | $0.75 | $2.51 | $2.15 |
Weighted average common shares outstanding (in shares) | 118.5 | 123.5 | 120.2 | 123.3 |
COMMON SHARES OUTSTANDING, net of treasury stock, at period end (in shares) | 114.5 | 121.8 | 114.5 | 121.8 |
New Vehicle [Member] | ' | ' | ' | ' |
TOTAL REVENUE | 2,823.60 | 2,561.60 | 7,989.10 | 7,312.90 |
TOTAL COST OF SALES (excluding depreciation shown below) | 2,666.50 | 2,406.20 | 7,524.50 | 6,866.60 |
TOTAL GROSS PROFIT | 157.1 | 155.4 | 464.6 | 446.3 |
Used Vehicle [Member] | ' | ' | ' | ' |
TOTAL REVENUE | 1,148.50 | 1,044.70 | 3,280.50 | 3,110.90 |
TOTAL COST OF SALES (excluding depreciation shown below) | 1,060.10 | 964.2 | 3,008.50 | 2,860.30 |
TOTAL GROSS PROFIT | 88.4 | 80.5 | 272 | 250.6 |
Parts and Service [Member] | ' | ' | ' | ' |
TOTAL REVENUE | 717.4 | 653.8 | 2,093.20 | 1,946.30 |
TOTAL COST OF SALES (excluding depreciation shown below) | 413.7 | 376.7 | 1,202 | 1,116.70 |
TOTAL GROSS PROFIT | 303.7 | 277.1 | 891.2 | 829.6 |
Finance and Insurance, Net [Member] | ' | ' | ' | ' |
TOTAL REVENUE | 196.5 | 174.9 | 554.3 | 504.4 |
TOTAL GROSS PROFIT | 196.5 | 174.9 | 554.3 | 504.4 |
Other Goods and Services [Member] | ' | ' | ' | ' |
TOTAL REVENUE | 23 | 35.8 | 143.9 | 119.2 |
TOTAL COST OF SALES (excluding depreciation shown below) | 15.8 | 27.1 | 120.8 | 93.4 |
TOTAL GROSS PROFIT | $7.20 | $8.70 | $23.10 | $25.80 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statement 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 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 | ' | ' | ' |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ' | ' | ' | ' | ' |
Net income | 302 | ' | ' | 302 | ' |
Repurchases of common stock | -418.2 | ' | ' | ' | -418.2 |
Stock-based compensation expense | 21.5 | ' | 21.5 | ' | ' |
Shares awarded under stock-based compensation plans, including income tax benefit of $15.4 | 45 | ' | -8.7 | ' | 53.7 |
BALANCE at Sep. 30, 2014 | $2,012 | $1.60 | $55.60 | $3,639.90 | ($1,685.10) |
BALANCE, shares at Sep. 30, 2014 | ' | 163,562,149 | ' | ' | ' |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Sep. 30, 2014 |
Statement of Stockholders' Equity [Abstract] | ' |
Shares awarded under stock-based compensation plans, income tax benefit | $15.40 |
Unaudited_Condensed_Consolidat5
Unaudited Condensed Consolidated Statements Of Cash Flows (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ' | ' |
Net income | $302 | $265.50 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Loss from discontinued operations | 0.9 | 0.6 |
Depreciation and amortization | 79 | 70.1 |
Amortization of debt issuance costs and accretion of debt discounts | 4.3 | 4.3 |
Stock-based compensation expense | 21.5 | 17.3 |
Deferred income tax provision | 11.9 | 15.4 |
Net gain related to business/property dispositions | -12.4 | -2.1 |
Non-cash impairment charges | 0.3 | 0 |
Excess tax benefit from stock-based awards | -15.4 | -8.5 |
Other | -2.6 | -3.3 |
(Increase) decrease, net of effects from business combinations and divestitures: | ' | ' |
Receivables | 84.8 | 95.5 |
Inventory | 146.7 | -88.7 |
Other assets | -25.3 | -13.9 |
Increase (decrease), net of effects from business combinations and divestitures: | ' | ' |
Vehicle floorplan payable-trade, net | -211.5 | 47.6 |
Accounts payable | -3 | 16.2 |
Other liabilities | 72.6 | 46.9 |
Net cash provided by continuing operations | 453.8 | 462.9 |
Net cash provided by (used in) discontinued operations | -0.9 | 5.4 |
Net cash provided by operating activities | 452.9 | 468.3 |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -151.9 | -110.6 |
Property operating lease buy-outs | -0.4 | -41.9 |
Proceeds from the sale of property and equipment | 0.2 | 3.1 |
Proceeds from assets held for sale | 2.6 | 1.8 |
Insurance recoveries on property and equipment | 1 | 2.2 |
Cash received from business divestitures, net of cash relinquished | 21.5 | 10.1 |
Cash used in business acquisitions, net of cash acquired | -13.3 | -72.9 |
Proceeds from the sale of restricted investments | 0.5 | 0 |
Other | -9.4 | -3.6 |
Net cash used in continuing operations | -149.2 | -211.8 |
Net cash used in discontinued operations | 0 | 0 |
Net cash used in investing activities | -149.2 | -211.8 |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ' | ' |
Repurchases of common stock | -378.3 | -18.6 |
Proceeds from revolving credit facility | 960 | 620 |
Payments of revolving credit facility | -850 | -840 |
Net payments of vehicle floorplan payable - non-trade | -53 | -12.2 |
Payments of mortgage facility | -6.8 | -6.5 |
Payments of capital leases and other debt obligations | -22.3 | -23.3 |
Proceeds from the exercise of stock options | 29.6 | 20.5 |
Excess tax benefit from stock-based awards | 15.4 | 8.5 |
Net cash used in continuing operations | -305.4 | -251.6 |
Net cash used in discontinued operations | 0 | -6.3 |
Net cash used in financing activities | -305.4 | -257.9 |
DECREASE IN CASH AND CASH EQUIVALENTS | -1.7 | -1.4 |
CASH AND CASH EQUIVALENTS at beginning of period | 69.2 | 69.7 |
CASH AND CASH EQUIVALENTS at end of period | $67.50 | $68.30 |
Interim_Financial_Statements
Interim Financial Statements | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Interim Financial Statements | ' |
INTERIM FINANCIAL STATEMENTS | |
Business and Basis of Presentation | |
AutoNation, Inc., through its subsidiaries, is the largest automotive retailer in the United States. As of September 30, 2014, we owned and operated 273 new vehicle franchises from 229 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 34 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 95% of the new vehicles that we sold during the nine months ended September 30, 2014, 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. | |
The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries; all significant intercompany accounts and transactions have been eliminated. The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared by us pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, certain information related to our organization, significant accounting policies, and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States have been condensed or omitted. These Unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state, in all material respects, our financial position and results of operations for the periods presented. | |
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 Unaudited Condensed Consolidated Financial Statements include certain assumptions related to goodwill, intangible assets, long-lived assets, 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, and certain assumptions related to stock-based compensation. | |
Operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. These interim financial statements should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included in our most recent Annual Report on Form 10-K. | |
Recent Accounting Pronouncements | |
Revenue Recognition | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that amends the accounting guidance on revenue recognition. The amendments in this accounting standard update are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. The amendments in this accounting standard update are effective for interim and annual reporting periods beginning after December 15, 2016, and should be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption (which requires additional footnote disclosures). Early adoption is not permitted. We are currently evaluating the method of adoption and the impact of the provisions of the accounting standard update. | |
Reporting Discontinued Operations | |
In April 2014, the FASB issued an accounting standard update that changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The amendments in this accounting standard update should be applied prospectively and are effective for annual periods, and interim periods within those years, beginning on or after December 15, 2014. Early adoption is permitted for disposals that have not been reported in financial statements previously issued. We adopted this accounting standard update effective January 1, 2014. During the first quarter of 2014, we divested our customer lead distribution business, and during the third quarter of 2014, we divested an Import store. See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information. | |
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 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. The adoption of this accounting standard update did not have a material impact on our consolidated financial position, results of operations, or cash flows. |
Receivables_Net
Receivables, Net | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Receivables, Net | ' | |||||||
RECEIVABLES, NET | ||||||||
The components of receivables, net of allowance for doubtful accounts, are as follows: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Trade receivables | $ | 117.7 | $ | 110.9 | ||||
Manufacturer receivables | 151.9 | 172.9 | ||||||
Other | 46.5 | 36.9 | ||||||
316.1 | 320.7 | |||||||
Less: Allowances | (3.6 | ) | (4.0 | ) | ||||
312.5 | 316.7 | |||||||
Contracts-in-transit and vehicle receivables | 330.2 | 424.2 | ||||||
Income tax refundable (see Note 6) | 9.1 | — | ||||||
Receivables, net | $ | 651.8 | $ | 740.9 | ||||
Trade receivables represent amounts due for parts and services that have been sold or delivered, excluding amounts due from manufacturers, as well as 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 | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory And Vehicle Floorplan Payable [Abstract] | ' | |||||||
Inventory And Vehicle Floorplan Payable | ' | |||||||
INVENTORY AND VEHICLE FLOORPLAN PAYABLE | ||||||||
The components of inventory are as follows: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
New vehicles | $ | 2,139.60 | $ | 2,330.80 | ||||
Used vehicles | 394.7 | 346.5 | ||||||
Parts, accessories, and other | 157.1 | 149.9 | ||||||
Inventory | $ | 2,691.40 | $ | 2,827.20 | ||||
The components of vehicle floorplan payable are as follows: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Vehicle floorplan payable - trade | $ | 1,912.60 | $ | 2,130.10 | ||||
Vehicle floorplan payable - non-trade | 862.1 | 898.9 | ||||||
Vehicle floorplan payable | $ | 2,774.70 | $ | 3,029.00 | ||||
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 Unaudited Condensed 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 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 1.7% for the nine months ended September 30, 2014, and 1.8% for the nine months ended September 30, 2013. At September 30, 2014, the aggregate capacity under our used vehicle floorplan facilities with various lenders to finance a portion of our used vehicle inventory was $275.0 million, of which $189.1 million had been borrowed. The remaining borrowing capacity of $85.9 million was limited to $50.2 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 1.8% for the nine months ended September 30, 2014, and 2.0% for the nine months ended September 30, 2013. At September 30, 2014, the aggregate capacity under our new vehicle floorplan facilities to finance our new vehicle inventory was approximately $3.5 billion, of which $2.6 billion had been borrowed. |
Goodwill_And_Intangible_Assets
Goodwill And Intangible Assets | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Goodwill And Intangible Assets | ' | |||||||
GOODWILL AND INTANGIBLE ASSETS | ||||||||
Goodwill and intangible assets, net, consist of the following: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Goodwill | $ | 1,265.30 | $ | 1,259.60 | ||||
Franchise rights - indefinite-lived | $ | 332.3 | $ | 329.3 | ||||
Other intangibles | 12.6 | 11.1 | ||||||
344.9 | 340.4 | |||||||
Less: accumulated amortization | (5.8 | ) | (5.3 | ) | ||||
Other intangible assets, net | $ | 339.1 | $ | 335.1 | ||||
Goodwill | ||||||||
We test goodwill of our Domestic, Import, and Premium Luxury reporting units for impairment annually as of 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 assessment of any potential 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 our qualitative assessment of any potential goodwill impairment as of April 30, 2014. Based on our qualitative assessment, 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. | ||||||||
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 as of April 30 for impairment. Under accounting standards, an entity is permitted 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, 2014. Based on our qualitative assessment, we determined that we should perform a quantitative test for franchise rights related to one store, and no impairment charges resulted from this quantitative test. For the remainder of our franchise rights, we determined that it was not more likely than not that the fair values of our franchise rights were less than their carrying amounts based on our qualitative assessment and we were therefore not required to perform a quantitative test. |
LongTerm_Debt
Long-Term Debt | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
LONG-TERM DEBT | ||||||||
Long-term debt consists of the following: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
6.75% Senior Notes due 2018 | $ | 396.9 | $ | 396.3 | ||||
5.5% Senior Notes due 2020 | 350 | 350 | ||||||
Term loan facility due 2016 | 500 | 500 | ||||||
Revolving credit facility due 2016 | 410 | 300 | ||||||
Mortgage facility (1) | 187.8 | 194.7 | ||||||
Capital leases and other debt | 88.3 | 98.9 | ||||||
1,933.00 | 1,839.90 | |||||||
Less: current maturities | (17.5 | ) | (30.1 | ) | ||||
Long-term debt, net of current maturities | $ | 1,915.50 | $ | 1,809.80 | ||||
(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. | ||||||||
Senior Unsecured Notes and Credit Agreement | ||||||||
At September 30, 2014, we had outstanding $396.9 million of 6.75% Senior Notes due 2018, net of debt discount. Interest on the 6.75% Senior Notes due 2018 is payable on April 15 and October 15 of each year. These notes will mature on April 15, 2018. | ||||||||
At September 30, 2014, we had outstanding $350.0 million 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 September 30, 2014, we had borrowings outstanding of $410.0 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 September 30, 2014, leaving an additional borrowing capacity under the revolving credit facility of $744.4 million at September 30, 2014. | ||||||||
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 September 30, 2014, we had $187.8 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 September 30, 2014, we had capital lease and other debt obligations of $88.3 million, which are due at various dates through 2034. | ||||||||
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 customary financial and operating covenants that place 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 September 30, 2014, our leverage ratio and capitalization ratio were as follows: | ||||||||
September 30, 2014 | ||||||||
Requirement | Actual | |||||||
Leverage ratio | ≤ 3.75x | 2.19x | ||||||
Capitalization ratio | ≤ 65.0% | 57.10% | ||||||
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 and repurchase shares. | ||||||||
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 our senior unsecured debt credit ratings occur. |
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
Income Tax Disclosure [Abstract] | ' |
Income Taxes | ' |
INCOME TAXES | |
Income taxes refundable included in Receivables, Net totaled $9.1 million at September 30, 2014. Income taxes payable included in Other Current Liabilities totaled $8.4 million at December 31, 2013. | |
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. Currently, no tax years are under examination by the IRS, and tax years from 2009 to 2012 are under examination by certain U.S. state jurisdictions. These audits may result in proposed assessments where the ultimate resolution may result in our owing additional taxes. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters. | |
It is our continuing policy to account for interest and penalties associated with income tax obligations as a component of Income Tax Provision in the accompanying Unaudited Condensed Consolidated Financial Statements. |
Shareholders_Equity
Shareholders' Equity | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Shareholders' Equity | ' | |||||||||||||||
SHAREHOLDERS’ EQUITY | ||||||||||||||||
A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Shares repurchased | 4.4 | — | 8 | 0.1 | ||||||||||||
Aggregate purchase price | $ | 235.9 | $ | — | $ | 415.7 | $ | 4.9 | ||||||||
Average purchase price per share | $ | 53.15 | $ | — | $ | 51.98 | $ | 40.81 | ||||||||
From October 1, 2014 through October 27, 2014, we repurchased an additional 1.4 million shares for an aggregate purchase price of $68.5 million (average purchase price per share of $49.29). In October 2014, our Board of Directors authorized an additional $250 million under our existing share repurchase program. As of October 27, 2014, $281.5 million remained available for share repurchases under the program. | ||||||||||||||||
A summary of shares of common stock issued in connection with the exercise of stock options follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Shares issued | 0.4 | 0.5 | 1.5 | 1 | ||||||||||||
Proceeds from the exercise of stock options | $ | 7.5 | $ | 9.9 | $ | 29.6 | $ | 20.5 | ||||||||
Average exercise price per share | $ | 17.54 | $ | 20.32 | $ | 19.59 | $ | 20.46 | ||||||||
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 (in actual number of shares): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Shares issued | 4,020 | — | 153,900 | 137,144 | ||||||||||||
Shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock | 1,788 | 516 | 46,265 | 42,822 | ||||||||||||
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
EARNINGS PER SHARE | ||||||||||||||||
Basic earnings per share (“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 and vested restricted stock unit 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: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income from continuing operations | $ | 106.7 | $ | 92.8 | $ | 302.9 | $ | 266.1 | ||||||||
Loss from discontinued operations, net of income taxes | (0.2 | ) | (0.2 | ) | (0.9 | ) | (0.6 | ) | ||||||||
Net income | $ | 106.5 | $ | 92.6 | $ | 302 | $ | 265.5 | ||||||||
Weighted average common shares outstanding used in calculating basic EPS | 117 | 121.5 | 118.5 | 121.3 | ||||||||||||
Effect of dilutive stock options | 1.5 | 2 | 1.7 | 2 | ||||||||||||
Weighted average common shares outstanding used in calculating diluted EPS | 118.5 | 123.5 | 120.2 | 123.3 | ||||||||||||
Basic EPS amounts: | ||||||||||||||||
Continuing operations | $ | 0.91 | $ | 0.76 | $ | 2.56 | $ | 2.19 | ||||||||
Discontinued operations | $ | — | $ | — | $ | (0.01 | ) | $ | — | |||||||
Net income | $ | 0.91 | $ | 0.76 | $ | 2.55 | $ | 2.19 | ||||||||
Diluted EPS amounts: | ||||||||||||||||
Continuing operations | $ | 0.9 | $ | 0.75 | $ | 2.52 | $ | 2.16 | ||||||||
Discontinued operations | $ | — | $ | — | $ | (0.01 | ) | $ | — | |||||||
Net income | $ | 0.9 | $ | 0.75 | $ | 2.51 | $ | 2.15 | ||||||||
A summary of anti-dilutive options excluded from the computation of diluted earnings per share is as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Anti-dilutive options excluded from the computation of diluted earnings per share | 0.7 | 0.6 | 0.5 | 0.7 | ||||||||||||
Divestitures
Divestitures | 9 Months Ended |
Sep. 30, 2014 | |
Discontinued Operations and Disposal Groups [Abstract] | ' |
Divestitures | ' |
DIVESTITURES | |
As discussed in Note 1 above, in April 2014, the FASB issued an accounting standard update that changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. We adopted this accounting standard update effective January 1, 2014. | |
During the third quarter of 2014, we divested an Import store and recorded a gain of $4.0 million ($2.5 million after-tax). During the first quarter of 2014, we divested our customer lead distribution business and recorded a gain of $8.4 million ($5.2 million after-tax). This business is reported in the “Corporate and other” category of our segment information. | |
The gains on these divestitures are included in Other Expenses (Income), Net (within Operating Income) in our Unaudited Condensed Consolidated Statements of Income. The financial condition and results of operations of these businesses were not material to our consolidated financial statements. |
Acquisitions
Acquisitions | 9 Months Ended |
Sep. 30, 2014 | |
Business Combinations [Abstract] | ' |
Acquisitions | ' |
ACQUISITIONS | |
On July 10, 2014, we purchased one store and related assets in the Mobile, Alabama market. This acquisition was not material to our financial condition or results of operations for the three and nine months ended September 30, 2014. Acquisitions are included in the Unaudited Condensed Consolidated Financial Statements from the date of acquisition. The purchase price allocation for this business combination is tentative and subject to final adjustment. On October 22, 2014, we purchased four stores and related assets in the Seattle-Bellevue, Washington market. | |
On a pro forma basis as if the results of these acquisitions that were completed in 2014 had been included in our consolidated results for the entire three and nine month periods ended September 30, 2014 and 2013, revenue and net income would not have been materially different from our reported revenue and net income for these periods. | |
We purchased three stores and related assets during the nine months ended September 30, 2013. |
Commitments_And_Contingencies
Commitments And Contingencies | 9 Months Ended |
Sep. 30, 2014 | |
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, and actions brought by governmental authorities. Some of these lawsuits purport or may be determined to be class or collective actions and seek substantial damages or injunctive relief, or both, and some may remain unresolved for several years. We are currently defending several purported class action lawsuits in California arising out of alleged violations of state wage and hour laws relating to compensation of automotive technicians. 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. | |
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 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. | |
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 store 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 store 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 and our subsidiaries in connection with such leases. Although 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 estimate that lessee rental payment obligations during the remaining terms of these leases with expirations ranging from 2015 to 2034 are approximately $35 million at September 30, 2014. We do not have any material known commitments that we or our subsidiaries will be called on to perform under any such assigned leases or subleases at September 30, 2014. Our exposure under these leases is difficult to estimate and there can be no assurance that any performance by AutoNation or its subsidiaries required under these leases would not have a material adverse effect on our business, financial condition, and cash flows. | |
At September 30, 2014, surety bonds, letters of credit, and cash deposits totaled $91.8 million, including $45.6 million of 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, 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 implemented an enforcement initiative relating to the advertising practices of automotive dealers. | |
In addition, 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. |
Segment_Information
Segment Information | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Segment Information | ' | |||||||||||||||
SEGMENT INFORMATION | ||||||||||||||||
At September 30, 2014 and 2013, we had three 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 Ford, General Motors, 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, Lexus, and Audi. The franchises in each segment also sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products. | ||||||||||||||||
“Corporate and other” is comprised of our other businesses, including collision centers, a customer lead distribution business (which was divested in January 2014), and an auction operation, each of which generates revenues, as well as unallocated corporate overhead expenses and retrospective commissions for certain financing and insurance transactions that we arrange under agreements with third parties. | ||||||||||||||||
The reportable 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. | ||||||||||||||||
Reportable segment revenue and segment income are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
Domestic | $ | 1,660.70 | $ | 1,491.20 | $ | 4,738.60 | $ | 4,384.50 | ||||||||
Import | 1,787.80 | 1,695.50 | 5,055.00 | 4,828.50 | ||||||||||||
Premium Luxury | 1,422.90 | 1,247.40 | 4,161.20 | 3,662.70 | ||||||||||||
Total | 4,871.40 | 4,434.10 | 13,954.80 | 12,875.70 | ||||||||||||
Corporate and other | 37.6 | 36.7 | 106.2 | 118 | ||||||||||||
Total consolidated revenue | $ | 4,909.00 | $ | 4,470.80 | $ | 14,061.00 | $ | 12,993.70 | ||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Segment income(1): | ||||||||||||||||
Domestic | $ | 76.7 | $ | 64.2 | $ | 211 | $ | 188.9 | ||||||||
Import | 77.1 | 72.7 | 220 | 216.6 | ||||||||||||
Premium Luxury | 84 | 74.2 | 253.1 | 218.7 | ||||||||||||
Total | 237.8 | 211.1 | 684.1 | 624.2 | ||||||||||||
Corporate and other | (43.5 | ) | (36.6 | ) | (129.4 | ) | (125.9 | ) | ||||||||
Other interest expense | (21.7 | ) | (22.3 | ) | (64.6 | ) | (66.6 | ) | ||||||||
Interest income | 0.1 | 0.1 | 0.2 | 0.2 | ||||||||||||
Other income (loss), net | 1.1 | (0.7 | ) | 3.5 | 2.2 | |||||||||||
Income from continuing operations before income taxes | $ | 173.8 | $ | 151.6 | $ | 493.8 | $ | 434.1 | ||||||||
-1 | Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. |
Business_And_Credit_Concentrat
Business And Credit Concentrations | 9 Months Ended |
Sep. 30, 2014 | |
Risks and Uncertainties [Abstract] | ' |
Business And Credit Concentrations | ' |
BUSINESS AND CREDIT CONCENTRATIONS | |
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 a bankruptcy of or other adverse event related to a major vehicle manufacturer or related lender. | |
We had receivables from manufacturers or distributors of $151.9 million at September 30, 2014, and $172.9 million at December 31, 2013. Additionally, a large portion of our Contracts-in-Transit included in Receivables, Net, in the accompanying Unaudited Condensed Consolidated Balance Sheets, are due from automotive manufacturers’ captive finance subsidiaries, which provide financing directly to our new and used vehicle customers. 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 September 30, 2014, we do not consider AutoNation to have any significant non-manufacturer concentrations of credit risk. |
Financial_Instruments_And_Fair
Financial Instruments And Fair Value Measurements | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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 Unaudited Condensed 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 primarily consists 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: | |||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Carrying value | $ | 1,023.00 | $ | 1,039.90 | ||||
Fair value | $ | 1,130.20 | $ | 1,135.20 | ||||
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 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 fair value less cost to sell (increase or decrease) is reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset at the time it was initially classified as held for sale. | ||||||||
Goodwill and Other Intangible Assets | ||||||||
Goodwill for our Domestic, Import, and Premium Luxury reporting units is tested for impairment annually as of 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, 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 assessment of potential goodwill impairment as of April 30, 2014 and 2013, 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 the three and nine months ended September 30, 2014 and 2013. | ||||||||
Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives and are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred. | ||||||||
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 any potential franchise rights impairment as of April 30, 2014. Based on our qualitative assessment, we determined that we should perform a quantitative test for franchise rights related to one store, and no impairment charges resulted from this quantitative test. For the remainder of our franchise rights, we determined that it was not more likely than not that the fair values of our franchise rights were less than their carrying amounts based on our qualitative assessment and we were therefore not required to perform a quantitative test. | ||||||||
The quantitative impairment test for franchise rights requires the comparison of the franchise rights’ estimated fair value to 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. The development of the assumptions used in our annual impairment tests are coordinated by our financial planning and analysis group, and the assumptions are reviewed by management. | ||||||||
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 the three and nine months ended September 30, 2013. | ||||||||
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 the three and nine months ended September 30, 2014 and 2013, there were no significant impairment charges recorded for the carrying value of long-lived assets held and used in continuing operations. | ||||||||
Long-lived Assets Held for Sale in Continuing Operations | ||||||||
During the nine months ended September 30, 2014, long-lived assets held for sale in continuing operations with a carrying value of $0.6 million were written down to their fair value of $0.3 million, resulting in a non-cash impairment charge of $0.3 million. The non-cash impairment charge was included in Other Expenses (Income), Net (within Operating Income) in our Unaudited Condensed Consolidated Statements of Income and was reported in the “Corporate and other” category of our segment information. We recorded no impairment charges during the three months ended September 30, 2014. | ||||||||
During the three and nine months ended September 30, 2013, no impairment charges were recorded for the carrying value of long-lived assets held for sale in continuing operations. | ||||||||
Long-lived Assets Held for Sale in Discontinued Operations | ||||||||
During the nine months ended September 30, 2014, long-lived assets held for sale in discontinued operations with a carrying value of $7.1 million were written down to their fair value of $6.9 million, resulting in a non-cash impairment charge of $0.2 million. The non-cash impairment charge was included in Loss from Discontinued Operations in our Unaudited Condensed Consolidated Statements of Income. We recorded no impairment charges during the three months ended September 30, 2014. | ||||||||
During the three and nine months ended September 30, 2013, no impairment charges were recorded for the carrying value of long-lived assets held for sale in discontinued operations. | ||||||||
As of September 30, 2014, we had long-lived assets held for sale of $65.4 million in continuing operations and $34.3 million in discontinued operations. Long-lived assets held for sale are included in Other Current Assets in our Unaudited Condensed Consolidated Balance Sheets. |
Cash_Flow_Information
Cash Flow Information | 9 Months Ended |
Sep. 30, 2014 | |
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 and financing activities primarily related to increases in property acquired under capital leases of $11.6 million for the nine months ended September 30, 2014, and $9.5 million for the nine months ended September 30, 2013. We also had accrued purchases of property and equipment of $15.7 million at September 30, 2014 and $11.0 million at September 30, 2013. The effect of non-cash transactions is excluded from the accompanying Unaudited Condensed Consolidated Statements of Cash Flows. | |
We made interest payments of $99.7 million during the nine months ended September 30, 2014, and $100.4 million during the nine months ended September 30, 2013. We made income tax payments, net of income tax refunds, of $180.4 million during the nine months ended September 30, 2014, and $155.3 million during the nine months ended September 30, 2013. |
Interim_Financial_Statements_P
Interim Financial Statements (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Consolidation | ' |
The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries; all significant intercompany accounts and transactions have been eliminated. | |
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 Unaudited Condensed Consolidated Financial Statements include certain assumptions related to goodwill, intangible assets, long-lived assets, 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, and certain assumptions related to stock-based compensation. | |
Recent Accounting Pronouncements | ' |
Recent Accounting Pronouncements | |
Revenue Recognition | |
In May 2014, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update that amends the accounting guidance on revenue recognition. The amendments in this accounting standard update are intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. The amendments in this accounting standard update are effective for interim and annual reporting periods beginning after December 15, 2016, and should be applied using either of the following transition methods: (i) a full retrospective approach reflecting the application of the standard in each prior reporting period with the option to elect certain practical expedients, or (ii) a retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption (which requires additional footnote disclosures). Early adoption is not permitted. We are currently evaluating the method of adoption and the impact of the provisions of the accounting standard update. | |
Reporting Discontinued Operations | |
In April 2014, the FASB issued an accounting standard update that changes the definition of a discontinued operation to include only those disposals of components of an entity that represent a strategic shift that has (or will have) a major effect on an entity’s operations and financial results. The amendments in this accounting standard update should be applied prospectively and are effective for annual periods, and interim periods within those years, beginning on or after December 15, 2014. Early adoption is permitted for disposals that have not been reported in financial statements previously issued. We adopted this accounting standard update effective January 1, 2014. During the first quarter of 2014, we divested our customer lead distribution business, and during the third quarter of 2014, we divested an Import store. See Note 9 of the Notes to Unaudited Condensed Consolidated Financial Statements for more information. | |
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 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. The adoption of this accounting standard update did not have a material impact on our consolidated financial position, results of operations, or cash flows. |
Recovered_Sheet1
Goodwill and Intangible Assets (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ' |
Goodwill | ' |
We test goodwill of our Domestic, Import, and Premium Luxury reporting units for impairment annually as of 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 assessment of any potential 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. | |
Intangible Assets, Indefinite-Lived | ' |
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 as of April 30 for impairment. Under accounting standards, an entity is permitted 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. |
Earnings_Per_Share_Policies
Earnings Per Share (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Earnings Per Share [Abstract] | ' |
Earnings Per Share, Basic and Diluted | ' |
Basic earnings per share (“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 and vested restricted stock unit 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. |
Financial_Instruments_And_Fair1
Financial Instruments And Fair Value Measurements (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Fair Value Disclosures [Abstract] | ' |
Impairment Of Long-Lived Assets | ' |
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 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 fair value less cost to sell (increase or decrease) is reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset at the time it was initially classified as held for sale. |
Cash_Flow_Information_Policies
Cash Flow Information (Policies) | 9 Months Ended |
Sep. 30, 2014 | |
Supplemental Cash Flow Information [Abstract] | ' |
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. |
Receivables_Net_Tables
Receivables, Net (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Receivables [Abstract] | ' | |||||||
Components Of Receivables, Net Of Allowance For Doubtful Accounts | ' | |||||||
The components of receivables, net of allowance for doubtful accounts, are as follows: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Trade receivables | $ | 117.7 | $ | 110.9 | ||||
Manufacturer receivables | 151.9 | 172.9 | ||||||
Other | 46.5 | 36.9 | ||||||
316.1 | 320.7 | |||||||
Less: Allowances | (3.6 | ) | (4.0 | ) | ||||
312.5 | 316.7 | |||||||
Contracts-in-transit and vehicle receivables | 330.2 | 424.2 | ||||||
Income tax refundable (see Note 6) | 9.1 | — | ||||||
Receivables, net | $ | 651.8 | $ | 740.9 | ||||
Inventory_And_Vehicle_Floorpla1
Inventory And Vehicle Floorplan Payable (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Inventory And Vehicle Floorplan Payable [Abstract] | ' | |||||||
Components Of Inventory | ' | |||||||
The components of inventory are as follows: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
New vehicles | $ | 2,139.60 | $ | 2,330.80 | ||||
Used vehicles | 394.7 | 346.5 | ||||||
Parts, accessories, and other | 157.1 | 149.9 | ||||||
Inventory | $ | 2,691.40 | $ | 2,827.20 | ||||
Components Of Vehicle Floorplan Payable | ' | |||||||
The components of vehicle floorplan payable are as follows: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Vehicle floorplan payable - trade | $ | 1,912.60 | $ | 2,130.10 | ||||
Vehicle floorplan payable - non-trade | 862.1 | 898.9 | ||||||
Vehicle floorplan payable | $ | 2,774.70 | $ | 3,029.00 | ||||
Goodwill_And_Intangible_Assets1
Goodwill And Intangible Assets (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ' | |||||||
Schedule Of Goodwill And Intangible Assets, Net | ' | |||||||
Goodwill and intangible assets, net, consist of the following: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Goodwill | $ | 1,265.30 | $ | 1,259.60 | ||||
Franchise rights - indefinite-lived | $ | 332.3 | $ | 329.3 | ||||
Other intangibles | 12.6 | 11.1 | ||||||
344.9 | 340.4 | |||||||
Less: accumulated amortization | (5.8 | ) | (5.3 | ) | ||||
Other intangible assets, net | $ | 339.1 | $ | 335.1 | ||||
LongTerm_Debt_Tables
Long-Term Debt (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Debt | ' | |||||||
Long-term debt consists of the following: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
6.75% Senior Notes due 2018 | $ | 396.9 | $ | 396.3 | ||||
5.5% Senior Notes due 2020 | 350 | 350 | ||||||
Term loan facility due 2016 | 500 | 500 | ||||||
Revolving credit facility due 2016 | 410 | 300 | ||||||
Mortgage facility (1) | 187.8 | 194.7 | ||||||
Capital leases and other debt | 88.3 | 98.9 | ||||||
1,933.00 | 1,839.90 | |||||||
Less: current maturities | (17.5 | ) | (30.1 | ) | ||||
Long-term debt, net of current maturities | $ | 1,915.50 | $ | 1,809.80 | ||||
(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. | ||||||||
Leverage Ratio And Capitalization Ratio Under The Terms Of Our Credit Agreement | ' | |||||||
Under the terms of our credit agreement, at September 30, 2014, our leverage ratio and capitalization ratio were as follows: | ||||||||
September 30, 2014 | ||||||||
Requirement | Actual | |||||||
Leverage ratio | ≤ 3.75x | 2.19x | ||||||
Capitalization ratio | ≤ 65.0% | 57.10% |
Shareholders_Equity_Tables
Shareholders' Equity (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Stockholders' Equity Note [Abstract] | ' | |||||||||||||||
Shares Repurchased Under Share Repurchase Program | ' | |||||||||||||||
A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Shares repurchased | 4.4 | — | 8 | 0.1 | ||||||||||||
Aggregate purchase price | $ | 235.9 | $ | — | $ | 415.7 | $ | 4.9 | ||||||||
Average purchase price per share | $ | 53.15 | $ | — | $ | 51.98 | $ | 40.81 | ||||||||
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: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Shares issued | 0.4 | 0.5 | 1.5 | 1 | ||||||||||||
Proceeds from the exercise of stock options | $ | 7.5 | $ | 9.9 | $ | 29.6 | $ | 20.5 | ||||||||
Average exercise price per share | $ | 17.54 | $ | 20.32 | $ | 19.59 | $ | 20.46 | ||||||||
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 (in actual number of shares): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Shares issued | 4,020 | — | 153,900 | 137,144 | ||||||||||||
Shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock | 1,788 | 516 | 46,265 | 42,822 | ||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Basic and Diluted EPS | ' | |||||||||||||||
The following table presents the calculation of basic and diluted EPS: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income from continuing operations | $ | 106.7 | $ | 92.8 | $ | 302.9 | $ | 266.1 | ||||||||
Loss from discontinued operations, net of income taxes | (0.2 | ) | (0.2 | ) | (0.9 | ) | (0.6 | ) | ||||||||
Net income | $ | 106.5 | $ | 92.6 | $ | 302 | $ | 265.5 | ||||||||
Weighted average common shares outstanding used in calculating basic EPS | 117 | 121.5 | 118.5 | 121.3 | ||||||||||||
Effect of dilutive stock options | 1.5 | 2 | 1.7 | 2 | ||||||||||||
Weighted average common shares outstanding used in calculating diluted EPS | 118.5 | 123.5 | 120.2 | 123.3 | ||||||||||||
Basic EPS amounts: | ||||||||||||||||
Continuing operations | $ | 0.91 | $ | 0.76 | $ | 2.56 | $ | 2.19 | ||||||||
Discontinued operations | $ | — | $ | — | $ | (0.01 | ) | $ | — | |||||||
Net income | $ | 0.91 | $ | 0.76 | $ | 2.55 | $ | 2.19 | ||||||||
Diluted EPS amounts: | ||||||||||||||||
Continuing operations | $ | 0.9 | $ | 0.75 | $ | 2.52 | $ | 2.16 | ||||||||
Discontinued operations | $ | — | $ | — | $ | (0.01 | ) | $ | — | |||||||
Net income | $ | 0.9 | $ | 0.75 | $ | 2.51 | $ | 2.15 | ||||||||
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: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Anti-dilutive options excluded from the computation of diluted earnings per share | 0.7 | 0.6 | 0.5 | 0.7 | ||||||||||||
Segment_Information_Tables
Segment Information (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||
Reportable segment revenue | ' | |||||||||||||||
Reportable segment revenue and segment income are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
Domestic | $ | 1,660.70 | $ | 1,491.20 | $ | 4,738.60 | $ | 4,384.50 | ||||||||
Import | 1,787.80 | 1,695.50 | 5,055.00 | 4,828.50 | ||||||||||||
Premium Luxury | 1,422.90 | 1,247.40 | 4,161.20 | 3,662.70 | ||||||||||||
Total | 4,871.40 | 4,434.10 | 13,954.80 | 12,875.70 | ||||||||||||
Corporate and other | 37.6 | 36.7 | 106.2 | 118 | ||||||||||||
Total consolidated revenue | $ | 4,909.00 | $ | 4,470.80 | $ | 14,061.00 | $ | 12,993.70 | ||||||||
Reportable segment income | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Segment income(1): | ||||||||||||||||
Domestic | $ | 76.7 | $ | 64.2 | $ | 211 | $ | 188.9 | ||||||||
Import | 77.1 | 72.7 | 220 | 216.6 | ||||||||||||
Premium Luxury | 84 | 74.2 | 253.1 | 218.7 | ||||||||||||
Total | 237.8 | 211.1 | 684.1 | 624.2 | ||||||||||||
Corporate and other | (43.5 | ) | (36.6 | ) | (129.4 | ) | (125.9 | ) | ||||||||
Other interest expense | (21.7 | ) | (22.3 | ) | (64.6 | ) | (66.6 | ) | ||||||||
Interest income | 0.1 | 0.1 | 0.2 | 0.2 | ||||||||||||
Other income (loss), net | 1.1 | (0.7 | ) | 3.5 | 2.2 | |||||||||||
Income from continuing operations before income taxes | $ | 173.8 | $ | 151.6 | $ | 493.8 | $ | 434.1 | ||||||||
-1 | Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. |
Financial_Instruments_And_Fair2
Financial Instruments And Fair Value Measurements (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
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: | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Carrying value | $ | 1,023.00 | $ | 1,039.90 | ||||
Fair value | $ | 1,130.20 | $ | 1,135.20 | ||||
Interim_Financial_Statements_D
Interim Financial Statements (Details) | 9 Months Ended |
Sep. 30, 2014 | |
franchises | |
brand | |
stores | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Owned and operated new vehicle franchises | 273 |
Number of stores | 229 |
Number of new vehicle brands | 34 |
Percentage of new vehicle sales manufactured by core brands | 95.00% |
Receivables_Net_Components_Of_
Receivables, Net (Components Of Receivables, Net Of Allowance For Doubtful Accounts) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Receivables [Abstract] | ' | ' |
Trade receivables | $117.70 | $110.90 |
Manufacturer receivables | 151.9 | 172.9 |
Other | 46.5 | 36.9 |
Trade, manufacturer and other receivables, gross | 316.1 | 320.7 |
Less: Allowances | -3.6 | -4 |
Trade, manufacturer and other receivables, net | 312.5 | 316.7 |
Contracts-in-transit and vehicle receivables | 330.2 | 424.2 |
Income tax refundable (see Note 6) | 9.1 | 0 |
Receivables, net | $651.80 | $740.90 |
Inventory_And_Vehicle_Floorpla2
Inventory And Vehicle Floorplan Payable (Components Of Inventory) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Inventory [Line Items] | ' | ' |
Inventory | $2,691.40 | $2,827.20 |
New Vehicle [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | 2,139.60 | 2,330.80 |
Used Vehicle [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | 394.7 | 346.5 |
Parts, Accessories, And Other [Member] | ' | ' |
Inventory [Line Items] | ' | ' |
Inventory | $157.10 | $149.90 |
Inventory_And_Vehicle_Floorpla3
Inventory And Vehicle Floorplan Payable (Components Of Vehicle Floorplan Payable) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Floorplan Payable [Line Items] | ' | ' |
Vehicle floorplan payable | $2,774.70 | $3,029 |
Trade [Member] | ' | ' |
Floorplan Payable [Line Items] | ' | ' |
Vehicle floorplan payable | 1,912.60 | 2,130.10 |
Non-Trade [Member] | ' | ' |
Floorplan Payable [Line Items] | ' | ' |
Vehicle floorplan payable | $862.10 | $898.90 |
Inventory_And_Vehicle_Floorpla4
Inventory And Vehicle Floorplan Payable (Narrative) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
In Millions, unless otherwise specified | Used Vehicle Floorplan Facilities [Member] | Used Vehicle Floorplan Facilities [Member] | New Vehicle Floorplan Facilities [Member] | New Vehicle Floorplan Facilities [Member] | ||
Floorplan Payable [Line Items] | ' | ' | ' | ' | ' | ' |
Vehicle floorplan facilities, average LIBOR-based interest rates | ' | ' | 1.70% | 1.80% | 1.80% | 2.00% |
Vehicle floorplan facilities, maximum borrowing capacity | ' | ' | $275 | ' | $3,500 | ' |
Vehicle floorplan facilities, amount outstanding | 2,774.70 | 3,029 | 189.1 | ' | 2,600 | ' |
Used vehicle floorplan facilities, remaining borrowing capacity | 85.9 | ' | ' | ' | ' | ' |
Used vehicle floorplan facilities, current borrowing capacity | $50.20 | ' | ' | ' | ' | ' |
Goodwill_And_Intangible_Assets2
Goodwill And Intangible Assets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Franchise Rights [Member] | Franchise Rights [Member] | Franchise Rights [Member] | Franchise Rights [Member] | Goodwill [Member] | Goodwill [Member] | |||
Indefinite-lived Intangible Assets [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | $1,265,300,000 | $1,259,600,000 | ' | ' | ' | ' | ' | ' |
Franchise rights - indefinite-lived | 332,300,000 | 329,300,000 | ' | ' | ' | ' | ' | ' |
Other intangibles | 12,600,000 | 11,100,000 | ' | ' | ' | ' | ' | ' |
Intangible assets gross (excluding goodwill) | 344,900,000 | 340,400,000 | ' | ' | ' | ' | ' | ' |
Less: accumulated amortization | -5,800,000 | -5,300,000 | ' | ' | ' | ' | ' | ' |
Other intangible assets, net | 339,100,000 | 335,100,000 | ' | ' | ' | ' | ' | ' |
Date of annual goodwill and indefinite lived intangible assets impairment test | ' | ' | ' | ' | 'April 30 | 'April 30 | 'April 30 | 'April 30 |
Franchise rights impairment | ' | ' | $0 | $0 | $0 | $0 | ' | ' |
LongTerm_Debt_LongTerm_Debt_De
Long-Term Debt (Long-Term Debt) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | ||
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] | Capital Leases and Other Debt [Member] | Capital Leases and Other Debt [Member] | Secured Debt [Member] | ||||
Mortgage Facility [Member] | |||||||||||||||||
Senior Notes | ' | ' | $396.90 | $396.30 | $350 | $350 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Term loan facility | ' | ' | ' | ' | ' | ' | 500 | 500 | ' | ' | ' | ' | ' | ' | ' | ||
Revolving credit facility | ' | ' | ' | ' | ' | ' | ' | ' | 410 | 300 | ' | ' | ' | ' | ' | ||
Mortgage facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 187.8 | [1] | 194.7 | [1] | ' | ' | ' |
Capital leases and other debt | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 88.3 | 98.9 | ' | ||
Long-term debt | 1,933 | 1,839.90 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Less: current maturities | -17.5 | -30.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Long-term debt, net of current maturities | 1,915.50 | 1,809.80 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Monthly principal and interest payments on mortgage facility | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1.7 | ||
Balloon payment for mortgage | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $155.40 | ||
[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_Narrative_Detail
Long-Term Debt (Narrative) (Details) (USD $) | 9 Months Ended | |||
Sep. 30, 2014 | Dec. 31, 2013 | |||
Debt Instrument [Line Items] | ' | ' | ||
Letters of credit | $45,600,000 | ' | ||
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 | ' | ||
Credit spread impact leverage ratio credit agreement | 0.25% | ' | ||
6.75% Senior Notes Due 2018 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Senior Notes | 396,900,000 | 396,300,000 | ||
6.75% Senior Notes Due 2018 [Member] | Senior Notes [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Percentage interest on debt instrument | 6.75% | ' | ||
Debt instrument, maturity date | 15-Apr-18 | ' | ||
5.5% Senior Notes Due 2020 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Senior Notes | 350,000,000 | 350,000,000 | ||
5.5% Senior Notes Due 2020 [Member] | Senior Notes [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 | ' | ||
Term Loan Facility Due 2016 [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Term loan facility | 500,000,000 | 500,000,000 | ||
Term Loan Facility Due 2016 [Member] | Loans Payable [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument, maturity date | 7-Dec-16 | ' | ||
Basis spread on variable interest rates | 1.75% | ' | ||
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 | 410,000,000 | 300,000,000 | ||
Revolving credit facility, letters of credit sublimit | 200,000,000 | ' | ||
Additional borrowing capacity under the revolving credit facility | 744,400,000 | ' | ||
Commitment fee on undrawn amounts | 0.30% | ' | ||
Revolving Credit Facility Due 2016 [Member] | Line of Credit [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument, maturity date | 7-Dec-16 | ' | ||
Basis spread on variable interest rates | 1.75% | ' | ||
Mortgage Facility [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Mortgage facility | 187,800,000 | [1] | 194,700,000 | [1] |
Mortgage Facility [Member] | Secured Debt [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Debt instrument, maturity date | 30-Nov-17 | ' | ||
Mortgage facility, fixed interest rate | 5.86% | ' | ||
Mortgage loans, term | '10 years | ' | ||
Monthly principal and interest payments on mortgage facility | 1,700,000 | ' | ||
Balloon payment for mortgage | 155,400,000 | ' | ||
Capital Leases and Other Debt [Member] | ' | ' | ||
Debt Instrument [Line Items] | ' | ' | ||
Capital leases and other debt | $88,300,000 | $98,900,000 | ||
[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 $) | Sep. 30, 2014 |
Debt Disclosure [Abstract] | ' |
Debt covenant capitalization ratio, requirement | 65.00% |
Debt covenant leverage ratio, requirement | 3.75 |
The maximum of amount of letters of credit excluded from the leverage ratio calculation | $150,000,000 |
Capitalization ratio calculation, additions to shareholders' equity | $1,520,000,000 |
LongTerm_Debt_Leverage_Ratio_A
Long-Term Debt (Leverage Ratio And Capitalization Ratio Under The Terms Of The Amended Credit Agreement) (Details) | Sep. 30, 2014 |
Debt Disclosure [Abstract] | ' |
Leverage ratio, requirement | 3.75 |
Leverage ratio, actual | 2.19 |
Capitalization ratio, requirement | 65.00% |
Capitalization ratio, actual | 57.10% |
Income_Taxes_Details
Income Taxes (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Income Tax Disclosure [Abstract] | ' | ' |
Income tax refundable | $9.10 | $0 |
Income taxes payable | ' | $8.40 |
Shareholders_Equity_Shares_Rep
Shareholders' Equity (Shares Repurchased Under Share Repurchase Program) (Details) (USD $) | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 27, 2014 | Oct. 20, 2014 |
Treasury Stock [Member] | Stock Repurchase Program Board Authorized Repurchases [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] | ' | ' | ' | ' | ' | ' | ' | ' |
Additional authorization under share repurchase program | ' | ' | ' | ' | ' | ' | ' | $250 |
Shares repurchased (in shares) | ' | ' | 4.4 | 0 | 8 | 0.1 | 1.4 | ' |
Aggregate purchase price | 418.2 | 418.2 | 235.9 | 0 | 415.7 | 4.9 | 68.5 | ' |
Average purchase price per share (in dollars per share) | ' | ' | $53.15 | $0 | $51.98 | $40.81 | $49.29 | ' |
Amount available for share repurchases under the share repurchase program | ' | ' | ' | ' | ' | ' | $281.50 | ' |
Shareholders_Equity_Common_Sto
Shareholders' Equity (Common Stock Issued With The Exercise Of Stock Options) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' |
Shares issued (in shares) | 0.4 | 0.5 | 1.5 | 1 |
Proceeds from the exercise of stock options | $7.50 | $9.90 | $29.60 | $20.50 |
Average exercise price per share (in dollars per share) | $17.54 | $20.32 | $19.59 | $20.46 |
Shareholders_Equity_Restricted
Shareholders' Equity (Restricted Stock Grants And Shares Surrendered To Satisfy Tax Withholdings) (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Stockholders' Equity Note [Abstract] | ' | ' | ' | ' |
Shares issued | 4,020 | 0 | 153,900 | 137,144 |
Shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock | 1,788 | 516 | 46,265 | 42,822 |
Earnings_Per_Share_Basic_and_D
Earnings Per Share (Basic and Diluted) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Millions, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income from continuing operations | $106.70 | $92.80 | $302.90 | $266.10 |
Loss from discontinued operations, net of income taxes | -0.2 | -0.2 | -0.9 | -0.6 |
NET INCOME | $106.50 | $92.60 | $302 | $265.50 |
Weighted average common shares outstanding used in calculating basic EPS (in shares) | 117 | 121.5 | 118.5 | 121.3 |
Effect of dilutive stock options (in shares) | 1.5 | 2 | 1.7 | 2 |
Weighted average common shares outstanding used in calculating diluted EPS (in shares) | 118.5 | 123.5 | 120.2 | 123.3 |
Basic EPS amounts: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.91 | $0.76 | $2.56 | $2.19 |
Discontinued operations (in dollars per share) | $0 | $0 | ($0.01) | $0 |
Net income (in dollars per share) | $0.91 | $0.76 | $2.55 | $2.19 |
Diluted EPS amounts: | ' | ' | ' | ' |
Continuing operations (in dollars per share) | $0.90 | $0.75 | $2.52 | $2.16 |
Discontinued operations (in dollars per share) | $0 | $0 | ($0.01) | $0 |
Net income (in dollars per share) | $0.90 | $0.75 | $2.51 | $2.15 |
Earnings_Per_Share_AntiDilutiv
Earnings Per Share (Anti-Dilutive Options Excluded From The Computation Of Diluted Earnings Per Share) (Details) | 3 Months Ended | 9 Months Ended | ||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Anti-dilutive options excluded from the computation of diluted earnings per share | 0.7 | 0.6 | 0.5 | 0.7 |
Divestitures_Details
Divestitures (Details) (USD $) | 3 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Mar. 31, 2014 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ' | ' |
Gain on disposal | $4 | $8.40 |
Gain on disposal, net of taxes | $2.50 | $5.20 |
Acquisitions_Details
Acquisitions (Details) | 9 Months Ended | 1 Months Ended | |
Sep. 30, 2014 | Sep. 30, 2013 | Oct. 22, 2014 | |
stores | stores | Subsequent Event [Member] | |
stores | |||
Subsequent Event [Line Items] | ' | ' | ' |
Number of stores purchased | 1 | 3 | 4 |
Commitments_And_Contingencies_
Commitments And Contingencies (Details) (USD $) | Sep. 30, 2014 |
In Millions, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Guarantor obligations, maximum exposure | $35 |
Total surety bonds, letters of credit, and cash deposits | 91.8 |
Letters of credit | $45.60 |
Segment_Information_Details
Segment Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
segments | segments | |||||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||||
Number of reportable segments | ' | ' | 3 | 3 | ||||
Total consolidated revenue | $4,909 | $4,470.80 | $14,061 | $12,993.70 | ||||
Total segment income | 237.8 | [1] | 211.1 | [1] | 684.1 | [1] | 624.2 | [1] |
Corporate and other | -43.5 | -36.6 | -129.4 | -125.9 | ||||
Other interest expense | -21.7 | -22.3 | -64.6 | -66.6 | ||||
Interest income | 0.1 | 0.1 | 0.2 | 0.2 | ||||
Other income (loss), net | 1.1 | -0.7 | 3.5 | 2.2 | ||||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 173.8 | 151.6 | 493.8 | 434.1 | ||||
AN Reportable Segments [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||||
Total consolidated revenue | 4,871.40 | 4,434.10 | 13,954.80 | 12,875.70 | ||||
AN Reportable Segment, Domestic [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||||
Total consolidated revenue | 1,660.70 | 1,491.20 | 4,738.60 | 4,384.50 | ||||
Total segment income | 76.7 | [1] | 64.2 | [1] | 211 | [1] | 188.9 | [1] |
AN Reportable Segment, Import [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||||
Total consolidated revenue | 1,787.80 | 1,695.50 | 5,055 | 4,828.50 | ||||
Total segment income | 77.1 | [1] | 72.7 | [1] | 220 | [1] | 216.6 | [1] |
AN Reportable Segment, Premium Luxury [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||||
Total consolidated revenue | 1,422.90 | 1,247.40 | 4,161.20 | 3,662.70 | ||||
Total segment income | 84 | [1] | 74.2 | [1] | 253.1 | [1] | 218.7 | [1] |
Corporate and Other [Member] | ' | ' | ' | ' | ||||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | ' | ' | ' | ' | ||||
Total consolidated revenue | $37.60 | $36.70 | $106.20 | $118 | ||||
[1] | Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. |
Business_And_Credit_Concentrat1
Business And Credit Concentrations (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Risks and Uncertainties [Abstract] | ' | ' |
Manufacturer receivables | $151.90 | $172.90 |
Financial_Instruments_And_Fair3
Financial Instruments And Fair Value Measurements (Summary Of Carrying Values And Fair Values Of Fixed Rate Debt) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Carrying Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fixed rate debt | $1,023 | $1,039.90 |
Fair Value [Member] | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Fixed rate debt | $1,130.20 | $1,135.20 |
Financial_Instruments_And_Fair4
Financial Instruments And Fair Value Measurements (Narrative) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Goodwill impairment | $0 | $0 | $0 | $0 |
Continuing Operations [Member] | Nonrecurring [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Impairment of long-lived assets held and used | 0 | 0 | 0 | 0 |
Impairment of long-lived assets held for sale | 0 | 0 | 300,000 | 0 |
Discontinued Operations [Member] | Nonrecurring [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Impairment of long-lived assets held for sale | 0 | 0 | 200,000 | 0 |
Goodwill [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Date of annual goodwill and indefinite lived intangible assets impairment test | ' | ' | 'April 30 | 'April 30 |
Franchise Rights [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Date of annual goodwill and indefinite lived intangible assets impairment test | ' | ' | 'April 30 | 'April 30 |
Franchise rights impairment | 0 | 0 | 0 | 0 |
Reported Value Measurement [Member] | Continuing Operations [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long-lived assets held for sale | 65,400,000 | ' | 65,400,000 | ' |
Reported Value Measurement [Member] | Discontinued Operations [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long-lived assets held for sale | 34,300,000 | ' | 34,300,000 | ' |
Estimate of Fair Value Measurement [Member] | Continuing Operations [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long-lived assets held for sale | 300,000 | ' | 300,000 | ' |
Estimate of Fair Value Measurement [Member] | Discontinued Operations [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long-lived assets held for sale | 6,900,000 | ' | 6,900,000 | ' |
CarryingValueBeforeFairValueAdjustment [Member] | Continuing Operations [Member] | Nonrecurring [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long-lived assets held for sale | 600,000 | ' | 600,000 | ' |
CarryingValueBeforeFairValueAdjustment [Member] | Discontinued Operations [Member] | Nonrecurring [Member] | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Long-lived assets held for sale | $7,100,000 | ' | $7,100,000 | ' |
Cash_Flow_Information_Details
Cash Flow Information (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Supplemental Cash Flow Information [Abstract] | ' | ' |
Capital lease obligations incurred | $11.60 | $9.50 |
Accrued purchases of property and equipment | 15.7 | 11 |
Interest payments | 99.7 | 100.4 |
Income tax payments, net of income tax refunds | $180.40 | $155.30 |