Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | Apr. 21, 2016 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Document Fiscal Period Focus | Q1 | |
Document Fiscal Year Focus | 2,016 | |
Trading Symbol | AN | |
Entity Registrant Name | AUTONATION, INC. | |
Entity Central Index Key | 350,698 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 103,103,606 |
Unaudited Condensed Consolidate
Unaudited Condensed Consolidated Balance Sheets - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and cash equivalents | $ 47.8 | $ 74.1 |
Receivables, net | 767.6 | 908.2 |
Inventory | 3,927.8 | 3,612 |
Other current assets | 129.5 | 115.4 |
Total Current Assets | 4,872.7 | 4,709.7 |
PROPERTY AND EQUIPMENT, net of accumulated depreciation of $1.0 billion and $1.0 billion, respectively | 2,768.1 | 2,667.4 |
GOODWILL | 1,437.4 | 1,394.5 |
OTHER INTANGIBLE ASSETS, NET | 554.7 | 439.9 |
OTHER ASSETS | 364.7 | 336.7 |
Total Assets | 9,997.6 | 9,548.2 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Vehicle floorplan payable | 4,039.4 | 3,727.1 |
Accounts payable | 310.5 | 299.9 |
Commercial paper | 926 | 599.5 |
Current maturities of long-term debt | 11.9 | 11.7 |
Other current liabilities | 572.7 | 529.2 |
Total Current Liabilities | 5,860.5 | 5,167.4 |
LONG-TERM DEBT, NET OF CURRENT MATURITIES | 1,742.6 | 1,745.3 |
DEFERRED INCOME TAXES | 91.5 | 78.6 |
OTHER LIABILITIES | $ 212.4 | $ 207.6 |
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; 120,562,149 shares issued at March 31, 2016, and December 31, 2015, including shares held in treasury | 1.2 | 1.2 |
Additional paid-in capital | 15.2 | 5.2 |
Retained earnings | 2,798.7 | 2,702.8 |
Treasury stock, at cost; 17,461,420 and 9,758,091 shares held, respectively | (724.5) | (359.9) |
Total Shareholders’ Equity | 2,090.6 | 2,349.3 |
Total Liabilities and Shareholders’ Equity | 9,997.6 | 9,548.2 |
Trade [Member] | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Vehicle floorplan payable | 2,572.1 | 2,565.8 |
Non-Trade [Member] | ||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Vehicle floorplan payable | $ 1,467.3 | $ 1,161.3 |
Unaudited Condensed Consolidat3
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
PROPERTY AND EQUIPMENT, accumulated depreciation | $ 1,040.8 | $ 1,009.8 |
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 | 120,562,149 | 120,562,149 |
Treasury stock, shares | 17,461,420 | 9,758,091 |
Unaudited Condensed Consolidat4
Unaudited Condensed Consolidated Income Statements - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
TOTAL REVENUE | $ 5,119.6 | $ 4,944.2 |
TOTAL COST OF SALES (excluding depreciation shown below) | 4,293.7 | 4,144.3 |
TOTAL GROSS PROFIT | 825.9 | 799.9 |
Selling, general, and administrative expenses | 588.7 | 557.6 |
Depreciation and amortization | 34.8 | 28.7 |
Other income, net | (5) | (1.3) |
OPERATING INCOME | 207.4 | 214.9 |
Non-operating income (expense) items: | ||
Floorplan interest expense | (18.9) | (13.2) |
Other interest expense | (28.3) | (21.4) |
Interest income | 0.1 | 0.1 |
Other income (loss), net | (3.4) | 1.1 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 156.9 | 181.5 |
Income tax provision | 60.7 | 69.8 |
NET INCOME FROM CONTINUING OPERATIONS | 96.2 | 111.7 |
Loss from discontinued operations, net of income taxes | (0.3) | (0.2) |
NET INCOME | $ 95.9 | $ 111.5 |
BASIC EARNINGS (LOSS) PER SHARE: | ||
Continuing operations (in dollars per share) | $ 0.90 | $ 0.98 |
Discontinued operations (in dollars per share) | 0 | 0 |
Net income (in dollars per share) | $ 0.90 | $ 0.98 |
Weighted average common shares outstanding (in shares) | 106.7 | 113.6 |
DILUTED EARNINGS (LOSS) PER SHARE: | ||
Continuing operations (in dollars per share) | $ 0.90 | $ 0.97 |
Discontinued operations (in dollars per share) | 0 | 0 |
Net income (in dollars per share) | $ 0.89 | $ 0.97 |
Weighted average common shares outstanding (in shares) | 107.4 | 115.1 |
COMMON SHARES OUTSTANDING, net of treasury stock, at period end (in shares) | 103.1 | 113.9 |
New Vehicle [Member] | ||
TOTAL REVENUE | $ 2,800.2 | $ 2,769.6 |
TOTAL COST OF SALES (excluding depreciation shown below) | 2,651 | 2,608.1 |
TOTAL GROSS PROFIT | 149.2 | 161.5 |
Used Vehicle [Member] | ||
TOTAL REVENUE | 1,241.6 | 1,193.2 |
TOTAL COST OF SALES (excluding depreciation shown below) | 1,150.6 | 1,089.5 |
TOTAL GROSS PROFIT | 91 | 103.7 |
Parts and Service [Member] | ||
TOTAL REVENUE | 820.4 | 743.4 |
TOTAL COST OF SALES (excluding depreciation shown below) | 465.7 | 423.4 |
TOTAL GROSS PROFIT | 354.7 | 320 |
Finance and Insurance, Net [Member] | ||
TOTAL REVENUE | 223.1 | 207.6 |
TOTAL GROSS PROFIT | 223.1 | 207.6 |
Other Goods and Services [Member] | ||
TOTAL REVENUE | 34.3 | 30.4 |
TOTAL COST OF SALES (excluding depreciation shown below) | 26.4 | 23.3 |
TOTAL GROSS PROFIT | $ 7.9 | $ 7.1 |
Unaudited Condensed Consolidat5
Unaudited Condensed Consolidated Statement Of Shareholders' Equity - 3 months ended Mar. 31, 2016 - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
BALANCE, shares at Dec. 31, 2015 | 120,562,149 | ||||
BALANCE at Dec. 31, 2015 | $ 2,349.3 | $ 1.2 | $ 5.2 | $ 2,702.8 | $ (359.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 95.9 | 95.9 | |||
Repurchases of common stock | (371.1) | (371.1) | |||
Stock-based compensation expense | 15.3 | 15.3 | |||
Shares awarded under stock-based compensation plans, including income tax benefit of $0.6 | 1.2 | (5.3) | 6.5 | ||
BALANCE, shares at Mar. 31, 2016 | 120,562,149 | ||||
BALANCE at Mar. 31, 2016 | $ 2,090.6 | $ 1.2 | $ 15.2 | $ 2,798.7 | $ (724.5) |
Unaudited Condensed Consolidat6
Unaudited Condensed Consolidated Statement of Shareholders' Equity (Parenthetical) $ in Millions | 3 Months Ended |
Mar. 31, 2016USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Shares awarded under stock-based compensation plans, income tax benefit | $ 0.6 |
Unaudited Condensed Consolidat7
Unaudited Condensed Consolidated Statements Of Cash Flows - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ||
Net income | $ 95.9 | $ 111.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Loss from discontinued operations | 0.3 | 0.2 |
Depreciation and amortization | 34.8 | 28.7 |
Amortization of debt issuance costs and accretion of debt discounts | 1.3 | 1.1 |
Stock-based compensation expense | 15.3 | 11.1 |
Deferred income tax provision | 4.8 | 2.7 |
Net gain related to business/property dispositions | (6.1) | (1.5) |
Non-cash impairment charges | 0.9 | 0.2 |
Excess tax benefit from stock-based awards | (0.6) | (8.1) |
Other | 3.8 | (0.8) |
(Increase) decrease, net of effects from business combinations and divestitures: | ||
Receivables | 161.2 | 38.5 |
Inventory | (146.5) | (23) |
Other assets | (23.7) | 1.4 |
Increase (decrease), net of effects from business combinations and divestitures: | ||
Vehicle floorplan payable - trade, net | 13.7 | (43.6) |
Accounts payable | 2.5 | 26.6 |
Other liabilities | 40.8 | 54.8 |
Net cash provided by continuing operations | 198.4 | 199.8 |
Net cash used in discontinued operations | (0.2) | (0.2) |
Net cash provided by operating activities | 198.2 | 199.6 |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||
Purchases of property and equipment | (54.7) | (66.4) |
Property operating lease buy-outs | (5) | 0 |
Proceeds from the sale of property and equipment | 0 | 0.2 |
Cash received from business divestitures, net of cash relinquished | 6.1 | 15.7 |
Cash used in business acquisitions, net of cash acquired | (256.6) | (27.7) |
Other | (0.5) | (1.4) |
Net cash used in continuing operations | (310.7) | (79.6) |
Net cash used in discontinued operations | 0 | 0 |
Net cash used in investing activities | (310.7) | (79.6) |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||
Repurchases of common stock | (371.1) | (9.6) |
Proceeds from revolving credit facility | 440 | 540 |
Payments of revolving credit facility | (440) | (615) |
Net proceeds from commercial paper | 326.5 | 0 |
Net proceeds from (payments of) vehicle floorplan payable - non-trade | 132.8 | (54.1) |
Payments of mortgage facility | (2.5) | (2.4) |
Payments of capital leases and other debt obligations | (0.7) | (0.7) |
Proceeds from the exercise of stock options | 0.6 | 12.4 |
Excess tax benefit from stock-based awards | 0.6 | 8.1 |
Net cash provided by (used in) continuing operations | 86.2 | (121.3) |
Net cash used in discontinued operations | 0 | 0 |
Net cash provided by (used in) financing activities | 86.2 | (121.3) |
DECREASE IN CASH AND CASH EQUIVALENTS | (26.3) | (1.3) |
CASH AND CASH EQUIVALENTS at beginning of period | 74.1 | 75.4 |
CASH AND CASH EQUIVALENTS at end of period | $ 47.8 | $ 74.1 |
Interim Financial Statements
Interim Financial Statements | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 , we owned and operated 375 new vehicle franchises from 265 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores sell 35 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 94% of the new vehicles that we sold during the three months ended March 31, 2016 , are manufactured by Toyota (including Lexus), Ford, Honda, General Motors, Nissan, FCA US (formerly Chrysler), Mercedes-Benz, BMW, and Volkswagen (including Audi and Porsche) . 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; intercompany accounts and transactions have been eliminated. The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Additionally, operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. The Unaudited Condensed Consolidated Financial Statements herein should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included within our most recent Annual Report on Form 10-K. 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 GAAP 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. The significant estimates made 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 Presentation of Debt Issuance Costs In April 2015, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update to simplify the presentation of debt issuance costs. The amendments in this accounting standard update require debt issuance costs be presented on the balance sheet as a reduction from the carrying amount of the related debt liability. In August 2015, the FASB issued an accounting standard update that allows the presentation of debt issuance costs related to line-of-credit arrangements to continue to be an asset on the balance sheet under the simplified guidance, regardless of whether there are any outstanding borrowings on the related arrangements. The amendments in these accounting standard updates are to be applied retrospectively and are effective for interim and annual reporting periods beginning after December 15, 2015. We adopted these accounting standard updates retrospectively effective January 1, 2016, and have reclassified all debt issuance costs, with the exception of those related to our revolving credit facility, as a reduction from the carrying amount of the related debt liability for both current and prior periods. See Note 5 of the Notes to Unaudited Condensed Consolidated Financial Statements for additional information. Revenue Recognition In May 2014, the 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 will 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 modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption (which requires additional footnote disclosures). This accounting standard update is effective for reporting periods beginning after December 15, 2017. Earlier application is permitted only as of reporting periods beginning after December 15, 2016. We are currently evaluating the method of adoption and the impact of the provisions of this accounting standard update. Accounting for Leases In February 2016, the FASB issued an accounting standard update that amends the accounting guidance on leases. The primary change in this accounting standard update requires lessees to recognize, in the balance sheet, a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset over the lease term. The amendments in this accounting standard update are to be applied using a modified retrospective approach and are effective for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of the provisions of this accounting standard update. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued an accounting standard update that amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification within the statement of cash flows. Certain of the amendments in this accounting standard update are to be applied using a modified retrospective approach by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted, while other amendments can be applied prospectively or retrospectively. The amendments in this accounting standard update are effective for periods beginning after December 15, 2016. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes that interim period. We are currently evaluating the impact of the provisions of this accounting standard update. |
Receivables, Net
Receivables, Net | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Receivables, Net | RECEIVABLES, NET The components of receivables, net of allowance for doubtful accounts, are as follows: March 31, December 31, Trade receivables $ 137.2 $ 133.6 Manufacturer receivables 189.4 221.4 Other 50.0 38.0 376.6 393.0 Less: allowances for doubtful accounts (4.1 ) (4.5 ) 372.5 388.5 Contracts-in-transit and vehicle receivables 395.1 508.0 Income tax refundable (see Note 6) — 11.7 Receivables, net $ 767.6 $ 908.2 Trade receivables represent amounts due for parts and services that have been delivered or sold, excluding amounts due from manufacturers, as well as receivables from finance organizations for commissions on the sale of financing products. Manufacturer receivables represent amounts due from manufacturers 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 Floorplan
Inventory And Vehicle Floorplan Payable | 3 Months Ended |
Mar. 31, 2016 | |
Inventory And Vehicle Floorplan Payable [Abstract] | |
Inventory And Vehicle Floorplan Payable | INVENTORY AND VEHICLE FLOORPLAN PAYABLE The components of inventory are as follows: March 31, December 31, New vehicles $ 3,186.1 $ 2,888.1 Used vehicles 551.3 539.7 Parts, accessories, and other 190.4 184.2 Inventory $ 3,927.8 $ 3,612.0 The components of vehicle floorplan payable are as follows: March 31, December 31, Vehicle floorplan payable - trade $ 2,572.1 $ 2,565.8 Vehicle floorplan payable - non-trade 1,467.3 1,161.3 Vehicle floorplan payable $ 4,039.4 $ 3,727.1 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. 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, floorplan assistance, and non-reimbursement-based manufacturer advertising rebates, 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 allow the manufacturer to draft against new vehicle floorplan facilities so the lender funds the manufacturer directly for the purchase of new vehicle inventory. Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related receivables. Our new vehicle floorplan facilities utilize LIBOR-based interest rates, which averaged 2.0% for the three months ended March 31, 2016 , and 1.7% for the three months ended March 31, 2015 . At March 31, 2016 , the aggregate capacity under our new vehicle floorplan facilities to finance our new vehicle inventory was approximately $4.6 billion , of which $3.7 billion had been borrowed. Our used vehicle floorplan facilities utilize LIBOR-based interest rates, which averaged 1.9% for the three months ended March 31, 2016 , and 1.7% for the three months ended March 31, 2015 . At March 31, 2016 , the aggregate capacity under our used vehicle floorplan facilities with various lenders to finance a portion of our used vehicle inventory was $360.0 million , of which $318.5 million had been borrowed. The remaining borrowing capacity of $41.5 million was limited to $0.4 million based on the eligible used vehicle inventory that could have been pledged as collateral. |
Goodwill And Intangible Assets,
Goodwill And Intangible Assets, Net | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill and intangible assets, net, consist of the following: March 31, December 31, Goodwill $ 1,437.4 $ 1,394.5 Franchise rights - indefinite-lived $ 546.8 $ 432.4 Other intangibles 14.9 14.3 561.7 446.7 Less: accumulated amortization (7.0 ) (6.8 ) Other intangible assets, net $ 554.7 $ 439.9 Goodwill 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 impairment may have occurred. We are scheduled to complete our annual impairment test as of April 30 , 2016. Other Intangible Assets 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. We are scheduled to complete our annual impairment test of our franchise rights as of April 30 , 2016. |
Long-Term Debt and Commercial P
Long-Term Debt and Commercial Paper | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Commercial Paper | LONG-TERM DEBT AND COMMERCIAL PAPER Long-term debt, net of debt issuance costs, consists of the following: March 31, December 31, 6.75% Senior Notes due 2018 $ 397.8 $ 397.5 5.5% Senior Notes due 2020 346.7 346.5 3.35% Senior Notes due 2021 297.7 297.6 4.5% Senior Notes due 2025 444.8 444.7 Revolving credit facility due 2019 — — Mortgage facility (1) 173.2 175.7 Capital leases and other debt 94.3 95.0 1,754.5 1,757.0 Less: current maturities (11.9 ) (11.7 ) Long-term debt, net of current maturities $ 1,742.6 $ 1,745.3 (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. As discussed in Note 1 above, the FASB issued an accounting standard update that requires debt issuance costs be presented on the balance sheet as a reduction from the carrying amount of the related debt liability. We adopted the accounting standard update retrospectively effective January 1, 2016, and have presented all debt issuance costs, with the exception of those related to our revolving credit facility, as a reduction from the carrying amount of the related debt liability for both current and prior periods. We reclassified $10.1 million of debt issuance costs as a direct reduction from the carrying amount of debt as of December 31, 2015. Senior Unsecured Notes and Credit Agreement At March 31, 2016 , we had outstanding $398.1 million of 6.75% Senior Notes due 2018, net of debt discount. Interest is payable on April 15 and October 15 of each year. These notes will mature on April 15, 2018 . At March 31, 2016 , 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. These notes will mature on February 1, 2020 . At March 31, 2016 , we had outstanding $300.0 million of 3.35% Senior Notes due 2021, net of debt discount. Interest is payable on January 15 and July 15 of each year. These notes will mature on January 15, 2021 . At March 31, 2016 , we had outstanding $448.5 million of 4.5% Senior Notes due 2025, net of debt discount. Interest on the 2025 Notes is payable on April 1 and October 1 of each year. These notes will mature on October 1, 2025 . The interest rate payable on the 2021 Notes and 2025 Notes is subject to adjustment upon the occurrence of certain credit rating events as provided in the indentures for these senior unsecured notes. Under our credit agreement, we have a $1.8 billion revolving credit facility that matures on December 3, 2019 . The credit agreement also contains an accordion feature that allows us, subject to credit availability and certain other conditions, to increase the amount of the revolving credit facility, together with any added term loans, by up to $500.0 million in the aggregate. As of March 31, 2016 , we had no borrowings outstanding 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 $44.1 million at March 31, 2016 , leaving a borrowing capacity under the revolving credit facility of $1.8 billion at March 31, 2016 . As of March 31, 2016 , this borrowing capacity was limited under the maximum consolidated leverage ratio contained in our credit agreement to $1.2 billion . Our revolving credit facility provides for a commitment fee on undrawn amounts ranging from 0.175% to 0.25% and interest on borrowings at LIBOR or the base rate, in each case plus an applicable margin. The applicable margin ranges from 1.25% to 1.625% for LIBOR borrowings and 0.25% to 0.625% for base rate borrowings. The interest rate charged for our revolving credit facility is affected by our leverage ratio. For instance, an increase in our leverage ratio from greater than or equal to 2.0 x but less than 3.25 x to greater than or equal to 3.25 x would result in a 12.5 basis point increase in the interest rate. 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 Long-Term Debt At March 31, 2016 , we had $173.2 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 March 31, 2016 , we had capital lease and other debt obligations of $94.3 million , which are due at various dates through 2034 . Commercial Paper We have a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes on a private placement basis up to a maximum aggregate amount outstanding at any time of $1.0 billion . The interest rate for the commercial paper notes varies based on duration and market conditions. The maturities of the commercial paper notes may vary, but may not exceed 397 days from the date of issuance. The commercial paper notes are guaranteed by substantially all of our subsidiaries. Proceeds from the issuance of commercial paper notes are used to repay borrowings under the revolving credit facility, to finance acquisitions and for working capital, capital expenditures, share repurchases, and/or other general corporate purposes. We plan to use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. A downgrade in our credit ratings could negatively impact our ability to issue, or the interest rates for, commercial paper notes. At March 31, 2016 , we had $926.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 1.23% and a weighted-average remaining term of 21 days . Restrictions and Covenants Our credit agreement, the indentures for our senior unsecured notes, 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 3.75 x and the maximum capitalization ratio is 70.0% . 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, 2014 plus $1.53 billion . The indentures for our senior unsecured notes 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 result in the 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 March 31, 2016 , our leverage ratio and capitalization ratio were as follows: March 31, 2016 Requirement Actual Leverage ratio ≤ 3.75x 2.60x Capitalization ratio ≤ 70.0% 64.9% 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. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES Income taxes payable included in Other Current Liabilities totaled $42.4 million at March 31, 2016 . Income taxes refundable included in Receivables, net totaled $11.7 million at December 31, 2015 . 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 2014 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. It is our 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Shares repurchased 7.9 0.2 Aggregate purchase price $ 370.6 $ 9.1 Average purchase price per share $ 47.20 $ 60.46 In February 2016, our Board of Directors authorized the repurchase of an additional $250.0 million of shares of our common stock. As of March 31, 2016 , $175.0 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 March 31, 2016 2015 Shares issued (in actual number of shares) 26,261 617,760 Proceeds from the exercise of stock options $ 0.6 $ 12.4 Average exercise price per share $ 22.94 $ 20.15 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 March 31, 2016 2015 Shares issued 138,424 155,328 Shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock 8,760 8,999 |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are to be included in the computation of earnings per share (“EPS”) under the two-class method. Our restricted stock awards are considered participating securities because they contain non-forfeitable rights to dividends. As the number of shares granted under such awards is immaterial, all earnings per share amounts reflect such shares as if they were fully vested shares and the disclosures associated with the two-class method are not presented. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards and vested restricted stock unit awards. Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options. The following table presents the calculation of basic and diluted EPS: Three Months Ended March 31, 2016 2015 Net income from continuing operations $ 96.2 $ 111.7 Loss from discontinued operations, net of income taxes (0.3 ) (0.2 ) Net income $ 95.9 $ 111.5 Weighted average common shares outstanding used in calculating basic EPS 106.7 113.6 Effect of dilutive stock options 0.7 1.5 Weighted average common shares outstanding used in calculating diluted EPS 107.4 115.1 Basic EPS amounts (1) : Continuing operations $ 0.90 $ 0.98 Discontinued operations $ — $ — Net income $ 0.90 $ 0.98 Diluted EPS amounts (1) : Continuing operations $ 0.90 $ 0.97 Discontinued operations $ — $ — Net income $ 0.89 $ 0.97 (1) Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. A summary of anti-dilutive options excluded from the computation of diluted earnings per share is as follows: Three Months Ended March 31, 2016 2015 Anti-dilutive options excluded from the computation of diluted earnings per share 2.5 0.5 |
Divestitures
Divestitures | 3 Months Ended |
Mar. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | DIVESTITURES During the first quarter of 2016 , we divested two Import stores and recorded a gain of $6.2 million . During the first quarter of 2015 , we divested two Import stores and recorded a gain of $1.4 million . The gains on these divestitures are included in Other 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 | 3 Months Ended |
Mar. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS During the first quarter of 2016, we purchased 12 stores located in Texas, which include Chrysler, Dodge, Jeep, Ram, Chevrolet, Hyundai, Mercedes-Benz, and Sprinter franchises. Acquisitions are included in the Unaudited Condensed Consolidated Financial Statements from the date of acquisition. The purchase price allocation for this business combination is preliminary and subject to final adjustment. We purchased two stores during the three months ended March 31, 2015 . The acquisitions that occurred during the three months ended March 31, 2016 were not material to our financial condition or results of operations. Additionally, on a pro forma basis as if the results of these acquisitions had been included in our consolidated results for the entire three month periods ended March 31, 2016 and 2015 , revenue and net income would not have been materially different from our reported revenue and net income for these periods. |
Commitments And Contingencies
Commitments And Contingencies | 3 Months Ended |
Mar. 31, 2016 | |
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 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. As of March 31, 2016 and 2015 , we have 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 results of operations, financial condition, or 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 2016 to 2034 are approximately $28 million at March 31, 2016 . 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 March 31, 2016 . 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 March 31, 2016 , surety bonds, letters of credit, and cash deposits totaled $99.3 million , including $44.1 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. 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 | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION At March 31, 2016 and 2015 , 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 FCA US (formerly 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 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. In the following tables of financial data, revenue and segment income of our reportable segments are reconciled to consolidated revenue and consolidated income from continuing operations before income taxes, respectively. Three Months Ended March 31, 2016 2015 Revenue: Domestic $ 1,848.2 $ 1,665.7 Import 1,675.0 1,678.7 Premium Luxury 1,540.3 1,563.2 Total 5,063.5 4,907.6 Corporate and other 56.1 36.6 Total consolidated revenue $ 5,119.6 $ 4,944.2 Three Months Ended March 31, 2016 2015 Segment income (1) : Domestic $ 77.4 $ 79.3 Import 76.1 75.0 Premium Luxury 83.0 94.1 Total 236.5 248.4 Corporate and other (48.0 ) (46.7 ) Other interest expense (28.3 ) (21.4 ) Interest income 0.1 0.1 Other income (loss), net (3.4 ) 1.1 Income from continuing operations before income taxes $ 156.9 $ 181.5 (1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. |
Business And Credit Concentrati
Business And Credit Concentrations | 3 Months Ended |
Mar. 31, 2016 | |
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 or related lender or supplier. The core brands of vehicles that we sell, representing approximately 94% of the new vehicles sold during the three months ended March 31, 2016 , are manufactured by Toyota (including Lexus), Ford, Honda, General Motors, Nissan, FCA US (formerly Chrysler), Mercedes-Benz, BMW, and Volkswagen (including Audi and Porsche) . Our business could be materially adversely impacted by a bankruptcy of or other adverse event related to a major vehicle manufacturer or related lender or supplier. We had receivables from manufacturers or distributors of $189.4 million at March 31, 2016 , and $221.4 million at December 31, 2015 . 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 March 31, 2016 , 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 judgment, and therefore cannot be determined with precision. 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, commercial paper, 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 long-term debt : Our fixed rate long-term 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 long-term debt is as follows: March 31, December 31, Carrying value $ 1,764.1 $ 1,767.1 Fair value $ 1,856.5 $ 1,858.6 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. Long-Lived Assets The fair value measurement valuation process for our long-lived assets is established by our corporate real estate services group. 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. The following table presents long-lived assets measured and recorded at fair value on a nonrecurring basis during the three months ended March 31, 2016 and 2015 : 2016 2015 Description Fair Value Gain/(Loss) Fair Value Gain/(Loss) Long-lived assets held for sale: Continuing operations $ 5.0 $ (0.9 ) $ 6.2 $ (0.2 ) Discontinued operations 13.2 (0.2 ) — — Total long-lived assets held for sale $ 18.2 $ (1.1 ) $ 6.2 $ (0.2 ) Long-Lived Assets Held and Used in Continuing Operations During the three months ended March 31, 2016 and March 31, 2015 , there were no 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 We recorded non-cash impairment charges related to long-lived assets held for sale in continuing operations of $0.9 million during the three months ended March 31, 2016 and $0.2 million during the three months ended March 31, 2015 . These non-cash impairment charges are included in Other Income, Net (within Operating Income) in our Unaudited Condensed Consolidated Statements of Income and are reported in the “Corporate and other” category of our segment information. Long-Lived Assets Held for Sale in Discontinued Operations We recorded a non-cash impairment charge related to long-lived assets held for sale in discontinued operations of $0.2 million during the three months ended March 31, 2016 . The non-cash impairment charge is included in Loss from Discontinued Operations in our Unaudited Condensed Consolidated Statements of Income. During the three months ended March 31, 2015 , there were no impairment charges recorded for the carrying value of long-lived assets held for sale in discontinued operations. As of March 31, 2016 , we had long-lived assets held for sale of $52.1 million in continuing operations and $22.1 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 | 3 Months Ended |
Mar. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Information | CASH FLOW INFORMATION We had non-cash investing and financing activities primarily related to increases in property acquired under capital leases of $5.3 million for the three months ended March 31, 2015 . We did not enter into any capital leases during the three months ended March 31, 2016 . We also had accrued purchases of property and equipment of $16.4 million at March 31, 2016 and $12.8 million at March 31, 2015 . We made interest payments, including interest on vehicle inventory financing, of $36.6 million during the three months ended March 31, 2016 , and $31.5 million during the three months ended March 31, 2015 . We made income tax payments, net of income tax refunds, of $0.9 million during the three months ended March 31, 2016 , and $18.4 million during the three months ended March 31, 2015 . |
Interim Financial Statements (P
Interim Financial Statements (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries; intercompany accounts and transactions have been eliminated. The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Additionally, operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. The Unaudited Condensed Consolidated Financial Statements herein should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included within our most recent Annual Report on Form 10-K. 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 GAAP 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. The significant estimates made 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 Presentation of Debt Issuance Costs In April 2015, the Financial Accounting Standards Board (“FASB”) issued an accounting standard update to simplify the presentation of debt issuance costs. The amendments in this accounting standard update require debt issuance costs be presented on the balance sheet as a reduction from the carrying amount of the related debt liability. In August 2015, the FASB issued an accounting standard update that allows the presentation of debt issuance costs related to line-of-credit arrangements to continue to be an asset on the balance sheet under the simplified guidance, regardless of whether there are any outstanding borrowings on the related arrangements. The amendments in these accounting standard updates are to be applied retrospectively and are effective for interim and annual reporting periods beginning after December 15, 2015. We adopted these accounting standard updates retrospectively effective January 1, 2016, and have reclassified all debt issuance costs, with the exception of those related to our revolving credit facility, as a reduction from the carrying amount of the related debt liability for both current and prior periods. See Note 5 of the Notes to Unaudited Condensed Consolidated Financial Statements for additional information. Revenue Recognition In May 2014, the 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 will 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 modified retrospective approach with the cumulative effect of initially adopting the standard recognized at the date of adoption (which requires additional footnote disclosures). This accounting standard update is effective for reporting periods beginning after December 15, 2017. Earlier application is permitted only as of reporting periods beginning after December 15, 2016. We are currently evaluating the method of adoption and the impact of the provisions of this accounting standard update. Accounting for Leases In February 2016, the FASB issued an accounting standard update that amends the accounting guidance on leases. The primary change in this accounting standard update requires lessees to recognize, in the balance sheet, a liability to make lease payments and a right-of-use asset representing the right to use the underlying asset over the lease term. The amendments in this accounting standard update are to be applied using a modified retrospective approach and are effective for fiscal years beginning after December 15, 2018. We are currently evaluating the impact of the provisions of this accounting standard update. Improvements to Employee Share-Based Payment Accounting In March 2016, the FASB issued an accounting standard update that amends several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification within the statement of cash flows. Certain of the amendments in this accounting standard update are to be applied using a modified retrospective approach by means of a cumulative-effect adjustment to equity as of the beginning of the period in which the guidance is adopted, while other amendments can be applied prospectively or retrospectively. The amendments in this accounting standard update are effective for periods beginning after December 15, 2016. Early adoption is permitted for any entity in any interim or annual period. If an entity early adopts the amendments in an interim period, any adjustments will be reflected as of the beginning of the fiscal year that includes that interim period. We are currently evaluating the impact of the provisions of this accounting standard update. |
Earnings Per Share (Policies)
Earnings Per Share (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards and vested restricted stock unit awards. Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options. |
Financial Instruments And Fai25
Financial Instruments And Fair Value Measurements (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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. |
Receivables, Net (Tables)
Receivables, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Components Of Receivables, Net Of Allowance For Doubtful Accounts | The components of receivables, net of allowance for doubtful accounts, are as follows: March 31, December 31, Trade receivables $ 137.2 $ 133.6 Manufacturer receivables 189.4 221.4 Other 50.0 38.0 376.6 393.0 Less: allowances for doubtful accounts (4.1 ) (4.5 ) 372.5 388.5 Contracts-in-transit and vehicle receivables 395.1 508.0 Income tax refundable (see Note 6) — 11.7 Receivables, net $ 767.6 $ 908.2 |
Inventory And Vehicle Floorpl27
Inventory And Vehicle Floorplan Payable (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Inventory And Vehicle Floorplan Payable [Abstract] | |
Components Of Inventory | The components of inventory are as follows: March 31, December 31, New vehicles $ 3,186.1 $ 2,888.1 Used vehicles 551.3 539.7 Parts, accessories, and other 190.4 184.2 Inventory $ 3,927.8 $ 3,612.0 |
Components Of Vehicle Floorplan Payable | The components of vehicle floorplan payable are as follows: March 31, December 31, Vehicle floorplan payable - trade $ 2,572.1 $ 2,565.8 Vehicle floorplan payable - non-trade 1,467.3 1,161.3 Vehicle floorplan payable $ 4,039.4 $ 3,727.1 |
Goodwill And Intangible Asset28
Goodwill And Intangible Assets, Net (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets, Net | Goodwill and intangible assets, net, consist of the following: March 31, December 31, Goodwill $ 1,437.4 $ 1,394.5 Franchise rights - indefinite-lived $ 546.8 $ 432.4 Other intangibles 14.9 14.3 561.7 446.7 Less: accumulated amortization (7.0 ) (6.8 ) Other intangible assets, net $ 554.7 $ 439.9 |
Long-Term Debt and Commercial29
Long-Term Debt and Commercial Paper (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Long-term debt, net of debt issuance costs, consists of the following: March 31, December 31, 6.75% Senior Notes due 2018 $ 397.8 $ 397.5 5.5% Senior Notes due 2020 346.7 346.5 3.35% Senior Notes due 2021 297.7 297.6 4.5% Senior Notes due 2025 444.8 444.7 Revolving credit facility due 2019 — — Mortgage facility (1) 173.2 175.7 Capital leases and other debt 94.3 95.0 1,754.5 1,757.0 Less: current maturities (11.9 ) (11.7 ) Long-term debt, net of current maturities $ 1,742.6 $ 1,745.3 (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 March 31, 2016 , our leverage ratio and capitalization ratio were as follows: March 31, 2016 Requirement Actual Leverage ratio ≤ 3.75x 2.60x Capitalization ratio ≤ 70.0% 64.9% |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 2015 Shares repurchased 7.9 0.2 Aggregate purchase price $ 370.6 $ 9.1 Average purchase price per share $ 47.20 $ 60.46 |
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 March 31, 2016 2015 Shares issued (in actual number of shares) 26,261 617,760 Proceeds from the exercise of stock options $ 0.6 $ 12.4 Average exercise price per share $ 22.94 $ 20.15 |
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 March 31, 2016 2015 Shares issued 138,424 155,328 Shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock 8,760 8,999 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted EPS | The following table presents the calculation of basic and diluted EPS: Three Months Ended March 31, 2016 2015 Net income from continuing operations $ 96.2 $ 111.7 Loss from discontinued operations, net of income taxes (0.3 ) (0.2 ) Net income $ 95.9 $ 111.5 Weighted average common shares outstanding used in calculating basic EPS 106.7 113.6 Effect of dilutive stock options 0.7 1.5 Weighted average common shares outstanding used in calculating diluted EPS 107.4 115.1 Basic EPS amounts (1) : Continuing operations $ 0.90 $ 0.98 Discontinued operations $ — $ — Net income $ 0.90 $ 0.98 Diluted EPS amounts (1) : Continuing operations $ 0.90 $ 0.97 Discontinued operations $ — $ — Net income $ 0.89 $ 0.97 (1) Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. |
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 March 31, 2016 2015 Anti-dilutive options excluded from the computation of diluted earnings per share 2.5 0.5 |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segment Revenue | revenue and segment income of our reportable segments are reconciled to consolidated revenue and consolidated income from continuing operations before income taxes, respectively. Three Months Ended March 31, 2016 2015 Revenue: Domestic $ 1,848.2 $ 1,665.7 Import 1,675.0 1,678.7 Premium Luxury 1,540.3 1,563.2 Total 5,063.5 4,907.6 Corporate and other 56.1 36.6 Total consolidated revenue $ 5,119.6 $ 4,944.2 |
Reportable Segment Income | Three Months Ended March 31, 2016 2015 Segment income (1) : Domestic $ 77.4 $ 79.3 Import 76.1 75.0 Premium Luxury 83.0 94.1 Total 236.5 248.4 Corporate and other (48.0 ) (46.7 ) Other interest expense (28.3 ) (21.4 ) Interest income 0.1 0.1 Other income (loss), net (3.4 ) 1.1 Income from continuing operations before income taxes $ 156.9 $ 181.5 (1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. |
Financial Instruments And Fai33
Financial Instruments And Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 long-term debt is as follows: March 31, December 31, Carrying value $ 1,764.1 $ 1,767.1 Fair value $ 1,856.5 $ 1,858.6 |
Nonfinancial Assets Measured and Recorded At Fair Value On A Nonrecurring Basis | The following table presents long-lived assets measured and recorded at fair value on a nonrecurring basis during the three months ended March 31, 2016 and 2015 : 2016 2015 Description Fair Value Gain/(Loss) Fair Value Gain/(Loss) Long-lived assets held for sale: Continuing operations $ 5.0 $ (0.9 ) $ 6.2 $ (0.2 ) Discontinued operations 13.2 (0.2 ) — — Total long-lived assets held for sale $ 18.2 $ (1.1 ) $ 6.2 $ (0.2 ) |
Interim Financial Statements (D
Interim Financial Statements (Details) | 3 Months Ended |
Mar. 31, 2016brandstoresfranchises | |
Segment Reporting Information [Line Items] | |
Percentage of new vehicle sales from core brands | 94.00% |
Number of brands | brand | 35 |
Number of stores | stores | 265 |
Owned and operated new vehicle franchises | franchises | 375 |
Receivables, Net (Components Of
Receivables, Net (Components Of Receivables, Net Of Allowance For Doubtful Accounts) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Trade receivables | $ 137.2 | $ 133.6 |
Manufacturer receivables | 189.4 | 221.4 |
Other | 50 | 38 |
Trade, manufacturer and other receivables, gross | 376.6 | 393 |
Less: allowances for doubtful accounts | (4.1) | (4.5) |
Trade, manufacturer and other receivables, net | 372.5 | 388.5 |
Contracts-in-transit and vehicle receivables | 395.1 | 508 |
Income tax refundable (see Note 6) | 0 | 11.7 |
Receivables, net | $ 767.6 | $ 908.2 |
Inventory And Vehicle Floorpl36
Inventory And Vehicle Floorplan Payable (Components Of Inventory) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Inventory | $ 3,927.8 | $ 3,612 |
New Vehicle [Member] | ||
Inventory [Line Items] | ||
Inventory | 3,186.1 | 2,888.1 |
Used Vehicle [Member] | ||
Inventory [Line Items] | ||
Inventory | 551.3 | 539.7 |
Parts and Service [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 190.4 | $ 184.2 |
Inventory And Vehicle Floorpl37
Inventory And Vehicle Floorplan Payable (Components Of Vehicle Floorplan Payable) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | $ 4,039.4 | $ 3,727.1 |
Trade [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | 2,572.1 | 2,565.8 |
Non-Trade [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | $ 1,467.3 | $ 1,161.3 |
Inventory And Vehicle Floorpl38
Inventory And Vehicle Floorplan Payable (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Floorplan Payable [Line Items] | |||
Vehicle floorplan facilities, amount outstanding | $ 4,039.4 | $ 3,727.1 | |
Used vehicle floorplan facilities, remaining borrowing capacity | 41.5 | ||
Used vehicle floorplan facilities, current borrowing capacity | $ 0.4 | ||
Used Vehicle Floorplan Facilities [Member] | |||
Floorplan Payable [Line Items] | |||
Vehicle floorplan facilities, average LIBOR-based interest rates | 1.90% | 1.70% | |
Vehicle floorplan facilities, maximum borrowing capacity | $ 360 | ||
Vehicle floorplan facilities, amount outstanding | $ 318.5 | ||
New Vehicle Floorplan Facilities [Member] | |||
Floorplan Payable [Line Items] | |||
Vehicle floorplan facilities, average LIBOR-based interest rates | 2.00% | 1.70% | |
Vehicle floorplan facilities, maximum borrowing capacity | $ 4,600 | ||
Vehicle floorplan facilities, amount outstanding | $ 3,700 |
Goodwill And Intangible Asset39
Goodwill And Intangible Assets, Net (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Goodwill and Intangible Assets [Line Items] | |||
Goodwill | $ 1,437.4 | $ 1,394.5 | |
Franchise rights - indefinite-lived | 546.8 | 432.4 | |
Other intangibles | 14.9 | 14.3 | |
Intangible assets, gross | 561.7 | 446.7 | |
Less: accumulated amortization | (7) | (6.8) | |
Other intangible assets, net | $ 554.7 | $ 439.9 | |
Goodwill [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Date of Annual Goodwill and Indefinite Lived Intangible Assets Impairment Test | April 30 | April 30 | |
Franchise Rights [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Date of Annual Goodwill and Indefinite Lived Intangible Assets Impairment Test | April 30 | April 30 |
Long-Term Debt and Commercial40
Long-Term Debt and Commercial Paper (Long-Term Debt) (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | ||
Long-term debt | $ 1,754.5 | $ 1,757 | |
Less: current maturities | (11.9) | (11.7) | |
Long-term debt, net of current maturities | 1,742.6 | 1,745.3 | |
6.75% Senior Notes Due 2018 [Member] | |||
Senior notes | 397.8 | 397.5 | |
5.5% Senior Notes Due 2020 [Member] | |||
Senior notes | 346.7 | 346.5 | |
3.35% Senior Notes due 2021 [Member] | |||
Senior notes | 297.7 | 297.6 | |
4.5% Senior Notes due 2025 [Member] | |||
Senior notes | 444.8 | 444.7 | |
Revolving Credit Facility Due 2019 [Member] | |||
Revolving credit facility | 0 | 0 | |
Mortgage Facility [Member] | |||
Mortgage facility | [1] | 173.2 | 175.7 |
Capital Leases and Other Debt [Member] | |||
Capital leases and other debt | 94.3 | $ 95 | |
Secured Debt [Member] | Mortgage Facility [Member] | |||
Monthly principal and interest payments on mortgage facility | 1.7 | ||
Balloon payment for mortgage | $ 155.4 | ||
[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 $155.4 million due November 2017. |
Long-Term Debt and Commercial41
Long-Term Debt and Commercial Paper (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Aug. 04, 2015 | ||
Debt Instrument [Line Items] | ||||
Unamortized Debt Issuance Expense | $ 10.1 | |||
Letters of credit, amount outstanding | $ 44.1 | |||
Commercial paper, maximum aggregate amount outstanding permitted | $ 1,000 | |||
Commercial paper, amount outstanding | 926 | 599.5 | ||
3.35% Senior Notes due 2021 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes Amount Outstanding | $ 300 | |||
Percentage interest on debt instrument | 3.35% | |||
Debt instrument, maturity date | Jan. 15, 2021 | |||
4.5% Senior Notes due 2025 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes Amount Outstanding | $ 448.5 | |||
Percentage interest on debt instrument | 4.50% | |||
Debt instrument, maturity date | Oct. 1, 2025 | |||
6.75% Senior Notes Due 2018 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes Amount Outstanding | $ 398.1 | |||
Percentage interest on debt instrument | 6.75% | |||
Debt instrument, maturity date | Apr. 15, 2018 | |||
5.5% Senior Notes Due 2020 [Member] | Senior Notes [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior Notes Amount Outstanding | $ 350 | |||
Percentage interest on debt instrument | 5.50% | |||
Debt instrument, maturity date | Feb. 1, 2020 | |||
Revolving Credit Facility Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity under revolving credit facility | $ 1,800 | |||
Additional borrowing capacity under accordion feature of revolving credit facility | 500 | |||
Revolving credit facility, amount outstanding | 0 | 0 | ||
Revolving credit facilities letter of credit sublimit | 200 | |||
Additional borrowing capacity under the revolving credit facility | 1,800 | |||
Borrowing capacity limited under the maximum consolidated leverage ratio | $ 1,200 | |||
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 | |||
Impact on credit spread from increase in leverage ratio | 0.125% | |||
Revolving Credit Facility Due 2019 [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Dec. 3, 2019 | |||
Mortgage Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Mortgage facility | [1] | $ 173.2 | 175.7 | |
Mortgage Facility [Member] | Secured Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Nov. 30, 2017 | |||
Mortgage facility, fixed interest rate | 5.864% | |||
Number of years of mortgage loans | 10 years | |||
Monthly principal and interest payments on mortgage facility | $ 1.7 | |||
Balloon payment for mortgage | 155.4 | |||
Capital Leases and Other Debt [Member] | ||||
Debt Instrument [Line Items] | ||||
Capital leases and other debt | $ 94.3 | $ 95 | ||
Minimum [Member] | Revolving Credit Facility Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee on undrawn amounts | 0.175% | |||
Maximum [Member] | Revolving Credit Facility Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee on undrawn amounts | 0.25% | |||
Commercial Paper [Member] | ||||
Debt Instrument [Line Items] | ||||
Weighted-average annual interest rate | 1.23% | |||
Commercial Paper [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity period of debt | 397 days | |||
Commercial Paper [Member] | Weighted Average [Member] | ||||
Debt Instrument [Line Items] | ||||
Maturity period of debt | 21 days | |||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Revolving Credit Facility Due 2019 [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates | 1.25% | |||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Revolving Credit Facility Due 2019 [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates | 1.625% | |||
Base Rate [Member] | Minimum [Member] | Revolving Credit Facility Due 2019 [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates | 0.25% | |||
Base Rate [Member] | Maximum [Member] | Revolving Credit Facility Due 2019 [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates | 0.625% | |||
[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. |
Long-Term Debt and Commercial42
Long-Term Debt and Commercial Paper (Restrictions And Covenants) (Details) - Credit Facility Due 2019 [Member] $ in Millions | Mar. 31, 2016USD ($) |
Debt Instrument [Line Items] | |
Capitalization ratio, requirement | 70.00% |
Leverage ratio, requirement | 3.75 |
The maximum threshold of letters of credit excluded from the leverage ratio calculation | $ 150 |
Capitalization ratio calculation, additions to shareholders' equity | $ 1,530 |
Long-Term Debt and Commercial43
Long-Term Debt and Commercial Paper (Leverage Ratio And Capitalization Ratio Under The Terms Of The Amended Credit Agreement) (Details) - Credit Facility Due 2019 [Member] | Mar. 31, 2016 |
Debt Instrument [Line Items] | |
Leverage ratio, requirement | 3.75 |
Leverage ratio, actual | 2.60 |
Capitalization ratio, requirement | 70.00% |
Capitalization ratio, actual | 64.90% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Income Tax Disclosure [Abstract] | ||
Income tax refundable | $ 0 | $ 11.7 |
Income taxes payable | $ 42.4 |
Shareholders' Equity (Shares Re
Shareholders' Equity (Shares Repurchased Under Share Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Class of Stock [Line Items] | ||
Aggregate purchase price | $ 371.1 | |
Treasury Stock [Member] | ||
Class of Stock [Line Items] | ||
Aggregate purchase price | 371.1 | |
Stock Repurchase Program Board Authorized Repurchases [Member] | ||
Class of Stock [Line Items] | ||
Stock Repurchase Program, Authorized Amount | $ 250 | |
Shares repurchased (in shares) | 7.9 | 0.2 |
Aggregate purchase price | $ 370.6 | $ 9.1 |
Average purchase price per share (in dollars per share) | $ 47.20 | $ 60.46 |
Remaining amount available for share repurchase | $ 175 |
Shareholders' Equity (Common St
Shareholders' Equity (Common Stock Issued With The Exercise Of Stock Options) (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | ||
Shares issued (in shares) | 26,261 | 617,760 |
Proceeds from the exercise of stock options | $ 0.6 | $ 12.4 |
Average exercise price per share (in dollars per share) | $ 22.94 | $ 20.15 |
Shareholders' Equity (Restricte
Shareholders' Equity (Restricted Stock Grants And Shares Surrendered To Satisfy Tax Withholdings) (Details) - shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Stockholders' Equity Note [Abstract] | ||
Shares issued | 138,424 | 155,328 |
Shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock | 8,760 | 8,999 |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Net income from continuing operations | $ 96.2 | $ 111.7 |
Loss from discontinued operations, net of income taxes | (0.3) | (0.2) |
NET INCOME | $ 95.9 | $ 111.5 |
Weighted average common shares outstanding used in calculating basic EPS (in shares) | 106.7 | 113.6 |
Effect of dilutive stock options (in shares) | 0.7 | 1.5 |
Weighted average common shares outstanding used in calculating diluted EPS (in shares) | 107.4 | 115.1 |
Basic EPS amounts(1): | ||
Continuing operations (in dollars per share) | $ 0.90 | $ 0.98 |
Discontinued operations (in dollars per share) | 0 | 0 |
Net income (in dollars per share) | 0.90 | 0.98 |
Diluted EPS amounts(1): | ||
Continuing operations (in dollars per share) | 0.90 | 0.97 |
Discontinued operations (in dollars per share) | 0 | 0 |
Net income (in dollars per share) | $ 0.89 | $ 0.97 |
Earnings Per Share (Anti-Diluti
Earnings Per Share (Anti-Dilutive Options Excluded From The Computation Of Diluted Earnings Per Share) (Details) - shares shares in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Earnings Per Share [Abstract] | ||
Anti-dilutive options excluded from the computation of diluted earnings per share (in shares) | 2.5 | 0.5 |
Divestitures (Details)
Divestitures (Details) - Import Stores Divested [Member] $ in Millions | 3 Months Ended | |
Mar. 31, 2016USD ($)stores | Mar. 31, 2015USD ($)stores | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Number of stores divested | stores | 2 | 2 |
Gain on disposal | $ | $ 6.2 | $ 1.4 |
Acquisitions (Details)
Acquisitions (Details) - stores | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Subsequent Event [Line Items] | ||
Number of stores purchased | 12 | 2 |
Commitments And Contingencies (
Commitments And Contingencies (Details) $ in Millions | Mar. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure | $ 28 |
Total surety bonds, letters of credit, and cash deposits | 99.3 |
Letters of credit, amount outstanding | $ 44.1 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2016USD ($)segments | Mar. 31, 2015USD ($)segments | ||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Number of reportable segments | segments | 3 | 3 | |
Total consolidated revenue | $ 5,119.6 | $ 4,944.2 | |
Total segment income | [1] | 236.5 | 248.4 |
Corporate and other | (48) | (46.7) | |
Other interest expense | (28.3) | (21.4) | |
Interest income | 0.1 | 0.1 | |
Other income (loss), net | (3.4) | 1.1 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 156.9 | 181.5 | |
AN Reportable Segments [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total consolidated revenue | 5,063.5 | 4,907.6 | |
AN Reportable Segment, Domestic [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total consolidated revenue | 1,848.2 | 1,665.7 | |
Total segment income | [1] | 77.4 | 79.3 |
AN Reportable Segment, Import [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total consolidated revenue | 1,675 | 1,678.7 | |
Total segment income | [1] | 76.1 | 75 |
AN Reportable Segment, Premium Luxury [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total consolidated revenue | 1,540.3 | 1,563.2 | |
Total segment income | [1] | 83 | 94.1 |
Corporate and Other [Member] | |||
Segment Reporting, Reconciling Item for Operating Profit (Loss) from Segment to Consolidated [Line Items] | |||
Total consolidated revenue | $ 56.1 | $ 36.6 | |
[1] | Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. |
Business And Credit Concentra54
Business And Credit Concentrations (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Risks and Uncertainties [Abstract] | ||
Percentage of new vehicle sales from core brands | 94.00% | |
Manufacturer receivables | $ 189.4 | $ 221.4 |
Financial Instruments And Fai55
Financial Instruments And Fair Value Measurements (Summary Of Carrying Values And Fair Values Of Fixed Rate Debt) (Details) - USD ($) $ in Millions | Mar. 31, 2016 | Dec. 31, 2015 |
Reported Value Measurement [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed rate debt | $ 1,764.1 | $ 1,767.1 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed rate debt | $ 1,856.5 | $ 1,858.6 |
Financial Instruments And Fai56
Financial Instruments And Fair Value Measurements (Nonfinancial Assets Measured on a Nonrecurring Basis) (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of long-lived assets held for sale | $ (1.1) | $ (0.2) |
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 | 18.2 | 6.2 |
Continuing Operations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of long-lived assets held and used | 0 | 0 |
Impairment of long-lived assets held for sale | (0.9) | (0.2) |
Continuing Operations [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 | 5 | 6.2 |
Discontinued Operations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of long-lived assets held for sale | (0.2) | 0 |
Discontinued Operations [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 | $ 13.2 | $ 0 |
Financial Instruments And Fai57
Financial Instruments And Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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 | $ 52.1 | |
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 | 22.1 | |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of long-lived assets held for sale | 1.1 | $ 0.2 |
Fair Value, Measurements, Nonrecurring [Member] | Continuing Operations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of Long-Lived Assets Held-for-use | 0 | 0 |
Impairment of long-lived assets held for sale | 0.9 | 0.2 |
Fair Value, Measurements, Nonrecurring [Member] | Discontinued Operations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of long-lived assets held for sale | $ 0.2 | $ 0 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||
Non-cash investing and financing activities primarily related to capital leases | $ 0 | $ 5,300,000 |
Accrued purchases of property and equipment | 16,400,000 | 12,800,000 |
Interest payments including interest on vehicle inventory financing | 36,600,000 | 31,500,000 |
Income tax payments, net of income tax refunds | $ 900,000 | $ 18,400,000 |