Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 06, 2017 | Jun. 30, 2016 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Period Focus | FY | ||
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 | 100,913,153 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 3 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 64.8 | $ 74.1 | |
Receivables, net | 1,032.9 | 908.2 | |
Inventory | 3,520.1 | 3,612 | |
Other current assets | 97 | 115.4 | |
Total Current Assets | 4,714.8 | 4,709.7 | |
PROPERTY AND EQUIPMENT, NET | 2,843.2 | 2,667.4 | |
GOODWILL, NET | [1] | 1,511.3 | 1,394.5 |
OTHER INTANGIBLE ASSETS, NET | 598.2 | 439.9 | |
OTHER ASSETS | 392.5 | 336.7 | |
Total Assets | 10,060 | 9,548.2 | |
CURRENT LIABILITIES: | |||
Vehicle floorplan payable | 3,849.2 | 3,727.1 | |
Accounts payable | 303.7 | 299.9 | |
Commercial paper | 942 | 599.5 | |
Current maturities of long-term debt | 167.5 | 11.7 | |
Other current liabilities | 566.8 | 529.2 | |
Total Current Liabilities | 5,829.2 | 5,167.4 | |
LONG-TERM DEBT, NET OF CURRENT MATURITIES | 1,611.1 | 1,745.3 | |
DEFERRED INCOME TAXES | 91.5 | 78.6 | |
OTHER LIABILITIES | 217.9 | 207.6 | |
COMMITMENTS AND CONTINGENCIES (Note 8) | |||
SHAREHOLDERS' EQUITY: | |||
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized; none issued | 0 | 0 | |
Common stock, par value $0.01 per share; 1,500,000,000 shares authorized; 120,562,149 shares issued at December 31, 2016, and December 31, 2015, including shares held in treasury | 1.2 | 1.2 | |
Additional paid-in capital | 18.2 | 5.2 | |
Retained earnings | 3,133.3 | 2,702.8 | |
Treasury stock, at cost; 19,909,940 and 9,758,091 shares held, respectively | (842.4) | (359.9) | |
Total Shareholders' Equity | 2,310.3 | 2,349.3 | |
Total Liabilities and Shareholders' Equity | 10,060 | 9,548.2 | |
Trade [Member] | |||
CURRENT LIABILITIES: | |||
Vehicle floorplan payable | 2,308.8 | 2,565.8 | |
Non-Trade [Member] | |||
CURRENT LIABILITIES: | |||
Vehicle floorplan payable | $ 1,540.4 | $ 1,161.3 | |
[1] | Net of accumulated impairment losses of $1.47 billion associated with our single reporting unit (prior to September 30, 2008, our reporting unit structure was comprised of a single reporting unit) and $140.0 million associated with our Domestic reporting unit, both of which were recorded during the year ended December 31, 2008. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,500,000,000 | 1,500,000,000 |
Common stock, shares issued | 120,562,149 | 120,562,149 |
Treasury stock, shares | 19,909,940 | 9,758,091 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Revenue: | |||
TOTAL REVENUE | $ 21,609 | $ 20,862 | $ 19,108.8 |
Cost of Sales: | |||
TOTAL COST OF SALES (excluding depreciation shown below) | 18,295.8 | 17,600.5 | 16,120.1 |
Gross Profit: | |||
TOTAL GROSS PROFIT | 3,313.2 | 3,261.5 | 2,988.7 |
Selling, general, and administrative expenses | 2,349.4 | 2,263.5 | 2,079.6 |
Depreciation and amortization | 143.4 | 127.4 | 106.9 |
Franchise rights impairment | 0 | 15.4 | 0 |
Other income, net | (69.1) | (17.9) | (18.6) |
OPERATING INCOME | 889.5 | 873.1 | 820.8 |
Non-operating income (expense) items: | |||
Floorplan interest expense | (76.5) | (58.3) | (53.3) |
Other interest expense | (115.5) | (90.9) | (86.7) |
Loss on debt extinguishment | 0 | 0 | (1.6) |
Interest income | 1.1 | 0.1 | 0.2 |
Other income (loss), net | 3.7 | (1.3) | 2.9 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 702.3 | 722.7 | 682.3 |
Income tax provision | 270.6 | 279 | 262.5 |
NET INCOME FROM CONTINUING OPERATIONS | 431.7 | 443.7 | 419.8 |
Loss from discontinued operations, net of income taxes | (1.2) | (1.1) | (1.1) |
NET INCOME | $ 430.5 | $ 442.6 | $ 418.7 |
BASIC EARNINGS (LOSS) PER SHARE: | |||
Continuing operations (in dollars per share) | $ 4.19 | $ 3.94 | $ 3.58 |
Discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.01) |
Net income (in dollars per share) | $ 4.18 | $ 3.93 | $ 3.57 |
Weighted average common shares outstanding (in shares) | 103.1 | 112.7 | 117.3 |
DILUTED EARNINGS (LOSS) PER SHARE: | |||
Continuing operations (in dollars per share) | $ 4.16 | $ 3.90 | $ 3.53 |
Discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.01) |
Net income (in dollars per share) | $ 4.15 | $ 3.89 | $ 3.52 |
Weighted average common shares outstanding (in shares) | 103.8 | 113.9 | 118.9 |
COMMON SHARES OUTSTANDING, net of treasury stock, at period end (in shares) | 100.7 | 110.8 | 113.3 |
New Vehicle [Member] | |||
Revenue: | |||
TOTAL REVENUE | $ 12,255.8 | $ 11,995 | $ 10,972.2 |
Cost of Sales: | |||
TOTAL COST OF SALES (excluding depreciation shown below) | 11,620 | 11,321.9 | 10,322.1 |
Gross Profit: | |||
TOTAL GROSS PROFIT | 635.8 | 673.1 | 650.1 |
Used Vehicle [Member] | |||
Revenue: | |||
TOTAL REVENUE | 4,995.3 | 4,768.7 | 4,385.7 |
Cost of Sales: | |||
TOTAL COST OF SALES (excluding depreciation shown below) | 4,677.7 | 4,415 | 4,025.1 |
Gross Profit: | |||
TOTAL GROSS PROFIT | 317.6 | 353.7 | 360.6 |
Parts and Service [Member] | |||
Revenue: | |||
TOTAL REVENUE | 3,321.4 | 3,082.8 | 2,822.5 |
Cost of Sales: | |||
TOTAL COST OF SALES (excluding depreciation shown below) | 1,886.7 | 1,744.8 | 1,625.9 |
Gross Profit: | |||
TOTAL GROSS PROFIT | 1,434.7 | 1,338 | 1,196.6 |
Finance and Insurance, Net [Member] | |||
Revenue: | |||
TOTAL REVENUE | 894.6 | 868.7 | 750.8 |
Gross Profit: | |||
TOTAL GROSS PROFIT | 894.6 | 868.7 | 750.8 |
Other Goods and Services [Member] | |||
Revenue: | |||
TOTAL REVENUE | 141.9 | 146.8 | 177.6 |
Cost of Sales: | |||
TOTAL COST OF SALES (excluding depreciation shown below) | 111.4 | 118.8 | 147 |
Gross Profit: | |||
TOTAL GROSS PROFIT | $ 30.5 | $ 28 | $ 30.6 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
BALANCE, Shares at Dec. 31, 2013 | 163,562,149 | ||||
BALANCE, Amount at Dec. 31, 2013 | $ 2,061.7 | $ 1.6 | $ 42.8 | $ 3,337.9 | $ (1,320.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 418.7 | 418.7 | |||
Repurchases of common stock | (487.7) | (487.7) | |||
Stock-based compensation expense | 26.3 | 26.3 | |||
Shares awarded under stock-based compensation plans, including excess income tax benefit of $0.6 in 2016, $17.9 in 2015, and $18.0 in 2014 | 53.1 | (7.3) | 60.4 | ||
BALANCE, Shares at Dec. 31, 2014 | 163,562,149 | ||||
BALANCE, Amount at Dec. 31, 2014 | 2,072.1 | $ 1.6 | 61.8 | 3,756.6 | (1,747.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 442.6 | 442.6 | |||
Repurchases of common stock | (237.3) | (237.3) | |||
Treasury stock cancellation, Shares | (43,000,000) | ||||
Treasury stock cancellation | 0 | $ (0.4) | (78.7) | (1,496.4) | 1,575.5 |
Stock-based compensation expense | 24 | 24 | |||
Shares awarded under stock-based compensation plans, including excess income tax benefit of $0.6 in 2016, $17.9 in 2015, and $18.0 in 2014 | 47.9 | (1.9) | 49.8 | ||
BALANCE, Shares at Dec. 31, 2015 | 120,562,149 | ||||
BALANCE, Amount 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 | 430.5 | 430.5 | |||
Repurchases of common stock | (499) | (499) | |||
Stock-based compensation expense | 25.1 | 25.1 | |||
Shares awarded under stock-based compensation plans, including excess income tax benefit of $0.6 in 2016, $17.9 in 2015, and $18.0 in 2014 | 9 | (7.5) | 16.5 | ||
Adjustments to Additional Paid in Capital, Other | (4.6) | (4.6) | |||
BALANCE, Shares at Dec. 31, 2016 | 120,562,149 | ||||
BALANCE, Amount at Dec. 31, 2016 | $ 2,310.3 | $ 1.2 | $ 18.2 | $ 3,133.3 | $ (842.4) |
Consolidated Statements of Sha6
Consolidated Statements of Shareholders' Equity (Parenthetical) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Stockholders' Equity [Abstract] | |||
Shares awarded under stock-based compensation plans, excess income tax benefit | $ 0.6 | $ 17.9 | $ 18 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | |||
Net income | $ 430.5 | $ 442.6 | $ 418.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Loss from discontinued operations | 1.2 | 1.1 | 1.1 |
Depreciation and amortization | 143.4 | 127.4 | 106.9 |
Amortization of debt issuance costs and accretion of debt discounts | 5.4 | 4.7 | 5.7 |
Stock-based compensation expense | 25.1 | 24 | 26.3 |
Franchise rights impairment | 0 | 15.4 | 0 |
Non-cash impairment charges | 14 | 6.1 | 1.1 |
Write-off of deferred debt issuance costs | 0 | 0 | 0.4 |
Net gain on asset sales and dispositions | (62.6) | (23.8) | (13.8) |
Deferred income tax provision | 3.7 | 10 | 9.5 |
Excess tax benefit from stock-based awards | (0.6) | (17.9) | (18) |
Other | (10.6) | 1.3 | (2) |
(Increase) decrease, net of effects from business combinations and divestitures: | |||
Receivables | (99.3) | (91.8) | (80.3) |
Inventory | 259.1 | (548.8) | (27.3) |
Other assets | (33.6) | (8.8) | (41.1) |
Increase (decrease), net of effects from business combinations and divestitures: | |||
Vehicle floorplan payable-trade, net | (196.4) | 488 | (27.2) |
Accounts payable | (5.8) | 37.7 | 7.5 |
Other liabilities | 43.8 | 41 | 118.7 |
Net cash provided by continuing operations | 517.3 | 508.2 | 486.2 |
Net cash used in discontinued operations | (1.3) | (1) | (1.1) |
Net cash provided by operating activities | 516 | 507.2 | 485.1 |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (244.5) | (247.6) | (209.2) |
Property operating lease buy-outs | (5) | (10.2) | (0.4) |
Proceeds from the sale of property and equipment | 8.7 | 21.9 | 5.5 |
Proceeds from the disposal of assets held for sale | 4.8 | 11.5 | 2.6 |
Insurance recoveries on property and equipment | 3.1 | 1 | 0 |
Cash used in business acquisitions, net of cash acquired | (410.4) | (321.5) | (205.2) |
Cash received from business divestitures, net of cash relinquished | 150.4 | 43.9 | 41.4 |
Net change in restricted cash | 3.3 | (3.8) | 0 |
Proceeds from the sales of restricted investments | 0 | 0 | 0.5 |
Other | (0.1) | (4.6) | (11.2) |
Net cash used in continuing operations | (489.7) | (509.4) | (376) |
Net cash used in discontinued operations | 0 | 0 | 0 |
Net cash used in investing activities | (489.7) | (509.4) | (376) |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Repurchases of common stock | (499) | (237.3) | (487.7) |
Payment of term loan facility | 0 | 0 | (500) |
Proceeds from revolving credit facilities | 1,330 | 1,410 | 2,780 |
Payments of revolving credit facilities | (1,330) | (2,520) | (1,970) |
Net proceeds from commercial paper | 342.5 | 599.5 | 0 |
Payment of debt issuance costs | 0 | (6.4) | (6) |
Net proceeds from (payments of) vehicle floorplan payable - non-trade | 153.8 | (13.3) | 61.6 |
Purchase of subsidiary shares | (15.2) | 0 | 0 |
Payments of mortgage facilities | (22.5) | (9.8) | (9.2) |
Payments of capital lease and other debt obligations | (4.2) | (18.2) | (24.7) |
Proceeds from the exercise of stock options | 8.4 | 30 | 35.1 |
Excess tax benefit from stock-based awards | 0.6 | 17.9 | 18 |
Net cash provided by (used in) continuing operations | (35.6) | 0.9 | (102.9) |
Net cash used in discontinued operations | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (35.6) | 0.9 | (102.9) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | (9.3) | (1.3) | 6.2 |
CASH AND CASH EQUIVALENTS at beginning of period | 74.1 | 75.4 | 69.2 |
CASH AND CASH EQUIVALENTS at end of period | 64.8 | 74.1 | 75.4 |
Senior Notes at Three Point Three Five Percent Due 2021 [Member] | |||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Proceeds from Senior Notes | 0 | 300 | 0 |
Senior Notes at Four Point Five Percent Due 2025 [Member] | |||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Proceeds from Senior Notes | $ 0 | $ 448.5 | $ 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Business AutoNation, Inc., through its subsidiaries, is the largest automotive retailer in the United States. As of December 31, 2016 , we owned and operated 371 new vehicle franchises from 260 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 in 2016 , are manufactured by Toyota (including Lexus), Ford, Honda, General Motors, FCA US, Mercedes-Benz, Nissan, 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. Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries. All of our automotive dealership subsidiaries are indirectly wholly owned by the parent company, AutoNation, Inc. Intercompany accounts and transactions have been eliminated in the consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements. 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 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. Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less as of the date of purchase to be cash equivalents unless the investments are legally or contractually restricted for more than three months. Under our cash management system, outstanding checks that are in excess of the cash balances at certain banks are included in Accounts Payable in the Consolidated Balance Sheets and changes in these amounts are reflected in operating cash flows in the accompanying Consolidated Statements of Cash Flows. Inventory Inventory consists primarily of new and used vehicles held for sale, valued at the lower of cost or market using the specific identification method. Cost includes acquisition, reconditioning, dealer installed accessories, and transportation expenses. Our new vehicle inventory costs are generally reduced by manufacturer holdbacks (percentage of either the manufacturer’s suggested retail price or invoice price of a new vehicle that the manufacturer repays to the dealer), incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising assistance. Parts, accessories, and other inventory are valued at the lower of acquisition cost (first-in, first-out) or market. See Note 3 of the Notes to Consolidated Financial Statements for more detailed information about our inventory. Property and Equipment, net Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. In addition, we capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and depreciated over the estimated useful lives of the assets. Leased property meeting certain criteria is capitalized and the present value of the related lease payments is recorded as a liability and included in current and/or long-term debt based on the lease term. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in Other Income, Net (within Operating Income) in the Consolidated Statements of Income. See Note 4 of the Notes to Consolidated Financial Statements for detailed information about our property and equipment. Depreciation is recorded over the estimated useful lives of the assets involved using the straight-line method. Leasehold improvements and capitalized lease assets are amortized to depreciation expense over the estimated useful life of the asset or the respective lease term used in determining lease classification, whichever is shorter. The range of estimated useful lives is as follows: Buildings and improvements 5 to 40 years Furniture, fixtures, and equipment 3 to 10 years We continually evaluate property and equipment, including leasehold improvements, to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the remaining balance should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the property and equipment in assessing whether an asset has been impaired. We measure impairment losses based upon the amount by which the carrying amount of the asset exceeds the fair value. When property and equipment is identified as held for sale, we reclassify the held for sale assets to Other Current Assets and cease recording depreciation. Assets held for sale in both continuing operations and discontinued operations are reported in the “Corporate and other” category of our segment information. We had assets held for sale of $41.4 million at December 31, 2016 , and $47.1 million at December 31, 2015 , included in continuing operations. We had assets held for sale of $15.7 million at December 31, 2016 , and $22.3 million at December 31, 2015 , included in discontinued operations. See Note 16 of the Notes to Consolidated Financial Statements for information about our fair value measurement valuation process and impairment charges that were recorded during 2016 and 2015 . Goodwill and Other Intangible Assets, net Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so. Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from five to thirty years. We do not amortize goodwill or franchise rights assets. Goodwill and franchise rights are tested for impairment annually or more frequently when events or changes in circumstances indicate that impairment may have occurred. We completed our annual impairment tests for both goodwill and franchise rights as of April 30 , 2016 . Based on our qualitative assessment of potential goodwill impairment, we determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts and we recorded no goodwill impairment charges during 2016 . Based on our qualitative assessment of potential franchise rights impairment, we determined that we should perform a quantitative test for certain franchise rights; however, no impairment charges resulted from these quantitative tests during 2016 . We completed our annual impairment tests for both goodwill and franchise rights as of April 30 , 2015 . Based on our qualitative assessment of potential goodwill impairment, we determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts and we recorded no goodwill impairment charges during 2015 . Based on our qualitative assessment of potential franchise rights impairment, we determined that we should perform a quantitative test for certain franchise rights, and no impairment charges resulted from the quantitative tests. As a result of the issues related to Volkswagen associated with certain of its diesel engine vehicles, during the fourth quarter of 2015, we performed a quantitative impairment test of the franchise rights recorded at our Volkswagen stores. As a result of this test, we recorded non-cash impairment charges of $15.4 million to reduce the carrying values of the Volkswagen franchise rights to their estimated fair values. See Note 5 of the Notes to Consolidated Financial Statements for more information about our goodwill and other intangible assets and Note 16 of the Notes to Consolidated Financial Statements for information about our annual impairment tests of goodwill and franchise rights. Other Current Assets Other current assets consist of various items, including, among other items, property and equipment held for sale in continuing operations and discontinued operations and prepaid expenses. Other Assets Other assets consist of various items, including, among other items, service loaner and rental vehicle inventory, net, and the cash surrender value of corporate-owned life insurance held in a Rabbi Trust for deferred compensation plan participants. Other Current Liabilities Other current liabilities consist of various items payable within one year including, among other items, accruals for payroll and benefits, sales taxes, the current portions of finance and insurance chargeback liabilities, self-insurance liabilities, and deferred revenue, customer deposits, accrued interest payable, and accrued expenses. Other Liabilities Other liabilities consist of various items payable beyond one year including, among other items, the long-term portions of deferred compensation obligations, finance and insurance chargeback liabilities, self-insurance liabilities, and deferred revenue. Employee Savings Plans We offer a 401(k) plan to all of our employees and provide a matching contribution to certain employees that participate in the plan. We provided a matching contribution of $6.8 million in 2016 , $6.8 million in 2015 , and $5.9 million in 2014 . Employer matching contributions are subject to a three -year graded vesting period for employees hired subsequent to January 1, 2011 , and are fully vested immediately upon contribution for employees hired prior to January 1, 2011. We offer a deferred compensation plan (the “Plan”) to provide certain employees and non-employee directors with the opportunity to accumulate assets for retirement on a tax-deferred basis. Participants in the Plan are allowed to defer a portion of their compensation and are fully vested in their respective deferrals and earnings. Participants may choose from a variety of investment options, which determine their earnings credits. We provided a matching contribution to employee participants in the Plan of $0.7 million for 2016 , $0.6 million for 2015 , and $0.6 million for 2014 . One-third of the matching contribution is vested and credited to participants on the first business day of the subsequent calendar year, and an additional one-third vests and is credited on each of the first and second anniversaries of such date. We may also make discretionary contributions, which vest three years after the effective date of the discretionary contribution. Participants eligible for a matching contribution under the Plan are not eligible for a matching contribution in our 401(k) plan. The balances due to participants in the Plan were $68.2 million as of December 31, 2016 , and $64.6 million as of December 31, 2015 , and are included in Other Current Liabilities and Other Liabilities in the accompanying Consolidated Balance Sheets. Stock-Based Compensation In 2016, 2015, and 2014, we granted stock-based awards in the form of stock options, restricted stock, and restricted stock units (“RSUs”). Stock options granted under all plans are non-qualified. Upon exercise, shares of common stock are issued from our treasury stock. We use the Black-Scholes valuation model to determine compensation expense associated with our stock options. Restricted stock awards, which are considered nonvested share awards as defined under generally accepted accounting principles, and RSUs are issued from our treasury stock. Compensation cost for restricted stock awards and RSUs is based on the closing price of our common stock on the date of grant. Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost for stock-based awards is recognized on a straight-line basis, net of estimated forfeitures, over the shorter of the stated vesting period or the period until employees become retirement-eligible. See Note 10 of the Notes to Consolidated Financial Statements for more information about our stock-based compensation arrangements. Revenue Recognition Revenue consists of the sales of new and used vehicles, sales of parts and automotive services, commissions from finance and insurance products, and sales of other products. We recognize revenue (which excludes sales taxes) in the period in which products are sold or services are provided. The automotive services we provide include, but are not limited to, customer-paid repairs and maintenance, as well as repairs and maintenance under manufacturer warranties and extended service contracts. We recognize vehicle and finance and insurance revenue when a sales contract has been executed, the vehicle has been delivered, and payment has been received or financing has been arranged. Revenue on finance and insurance products represents commissions earned by us for the placement of: (i) loans and leases with financial institutions in connection with customer vehicle purchases financed, (ii) vehicle service contracts with third-party providers, and (iii) other protection products with third-party providers. We sell and receive a commission, which is recognized upon sale, on the following types of products: extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products. The products we offer include products that are sold and administered by independent third parties, including the vehicle manufacturers’ captive finance subsidiaries. Pursuant to our arrangements with these third-party providers, we primarily sell the products on a straight commission basis; however, we may sell the product, recognize commission, and participate in future profit pursuant to retrospective commission arrangements with the issuers of those contracts, which is recognized as earned. Certain commissions earned from the sales of finance and insurance products are subject to chargeback should the contracts be terminated prior to their expirations. An estimated liability for chargebacks against revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized. Our estimated liability for chargebacks is based primarily on our historical chargeback experience, and is influenced by the volume of vehicle sales in recent years, product penetration, product mix, and increases or decreases in early termination rates resulting from cancellation of vehicle service contracts and other protection products, defaults, refinancings and payoffs before maturity, and other factors. Chargeback liabilities were $116.8 million at December 31, 2016 , and $97.3 million at December 31, 2015 . See Note 18 of the Notes to Consolidated Financial Statements for more information regarding chargeback liabilities. Insurance Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, employee medical benefits, automobile, and workers’ compensation. Costs in excess of this retained risk per claim may be insured under various contracts with third-party insurance carriers. We review our claim and loss history on a periodic basis to assist in assessing our future liability. The ultimate costs of these retained insurance risks are estimated by management and by third-party actuarial evaluation of historical claims experience, adjusted for current trends and changes in claims-handling procedures. See Note 6 of the Notes to Consolidated Financial Statements for more information on our self-insurance liabilities. Manufacturer Incentives and Other Rebates We receive various incentives from manufacturers based on achieving certain objectives, such as specified sales volume targets, as well as other objectives, including maintaining standards of a particular vehicle brand, which may include but are not limited to facility image and design requirements, customer satisfaction survey results, and training standards, among others. These incentives are typically based upon units purchased or sold. These manufacturer incentives are recognized as a reduction of new vehicle cost of sales when earned, generally at the time the related vehicles are sold or upon attainment of the particular program goals, whichever is later. We also receive manufacturer rebates and assistance for holdbacks, floorplan interest, and non-reimbursement-based advertising expenses (described below), which are reflected as a reduction in the carrying value of each vehicle purchased by us. We recognize holdbacks, floorplan interest assistance, non-reimbursement-based advertising rebates, cash incentives, and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold. Advertising We generally expense the cost of advertising as incurred, net of earned manufacturer reimbursements for specific advertising costs and other discounts. Advertising expense, net of manufacturer advertising reimbursements, was $196.7 million in 2016 , $188.5 million in 2015 , and $164.9 million in 2014 , and is reflected as a component of Selling, General, and Administrative Expenses in the accompanying Consolidated Statements of Income. Manufacturer advertising rebates that are reimbursements of costs associated with specific advertising expenses are earned in accordance with the respective manufacturers’ reimbursement-based advertising assistance programs, which is typically after we have incurred the corresponding advertising expenses, and are reflected as a reduction of advertising expense. Manufacturer advertising reimbursements classified as an offset to advertising expenses were $58.5 million in 2016 , $56.4 million in 2015 , and $47.1 million in 2014 . All other non-reimbursement-based manufacturer advertising rebates that are not associated with specific advertising expenses are recorded as a reduction of inventory and recognized as a reduction of new vehicle cost of sales in the period the related vehicle is sold. Parts and Service Internal Profit Our parts and service departments recondition the majority of used vehicles acquired by our used vehicle departments and perform minor preparatory work on new vehicles acquired by our new vehicle departments. The parts and service departments charge the new and used vehicle departments as if they were third parties in order to account for total activity performed by that department. Revenues and costs of sales associated with the internal work performed by our parts and service departments are reflected in our parts and service results in our Consolidated Statements of Income. New and used vehicle revenues and costs of sales are reduced by the amount of the intracompany charge. As a result, the revenues and costs of sales associated with the internal work performed by our parts and service departments are eliminated in consolidation. We also maintain an allowance for internal profit on vehicles that have not been sold. Income Taxes We file a consolidated federal income tax return. Deferred income taxes have been provided for temporary differences between the recognition of revenue and expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the financial statements. See Note 11 of the Notes to Consolidated Financial Statements for more detailed information related to income taxes. Taxes Assessed by Governmental Authorities Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue in our Consolidated Financial Statements. Earnings (Loss) Per Share Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards which contain rights to non-forfeitable dividends and vested restricted stock unit awards. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options. See Note 12 of the Notes to Consolidated Financial Statements for more information on the computation of earnings (loss) per share. Recent Accounting Pronouncements Presentation of 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 direct 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 as 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 were to be applied retrospectively and were effective for interim and annual reporting periods beginning after December 15, 2015. We adopted this 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. See Note 7 of the Notes to 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. Early adoption is permitted only as of reporting periods beginning after December 31, 2016. We will adopt this accounting standard update effective January 1, 2018. While we are currently evaluating the method of adoption and the impact of the provisions of this accounting standard update, we expect similar performance obligations to result under this update as compared with deliverables and separate units of accounting currently identified. As a result, we expect the timing of our revenue recognition to generally remain the same. 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 will adopt this accounting standard update effective January 1, 2019. While we are still evaluating the impact of adopting this update on our consolidated financial statements, we expect that upon adoption the right-of-use assets and lease liabilities recorded could be material to our consolidated balance sheets. However, we do not expect a material impact to our consolidated statements of income. 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. We adopted this accounting standard update effective January 1, 2017, and the cumulative-effect adjustment to equity was not material. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an accounting standard update that provides classification guidance on eight specific cash flow issues, for which guidance previously did not exist or was unclear. The amendments in this accounting standard update are effective for periods beginning after December 15, 2017. Early adoption is permitted for any entity in any interim or annual period. We will adopt this accounting standard update effective January 1, 2018. The provisions of this accounting standard update will not have a material impact on our consolidated statements of cash flows. |
Receivables, Net
Receivables, Net | 12 Months Ended |
Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Receivables, Net | RECEIVABLES, NET The components of receivables, net of allowance for doubtful accounts, at December 31 are as follows: 2016 2015 Trade receivables $ 147.6 $ 133.6 Manufacturer receivables 234.9 221.4 Other 48.7 38.0 431.2 393.0 Less: allowances for doubtful accounts (5.8 ) (4.5 ) 425.4 388.5 Contracts-in-transit and vehicle receivables 595.9 508.0 Income taxes receivable (See Note 11) 11.6 11.7 Receivables, net $ 1,032.9 $ 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 | 12 Months Ended |
Dec. 31, 2016 | |
Inventory And Vehicle Floorplan Payable [Abstract] | |
Inventory And Vehicle Floorplan Payable | INVENTORY AND VEHICLE FLOORPLAN PAYABLE The components of inventory at December 31 are as follows: 2016 2015 New vehicles $ 2,761.5 $ 2,888.1 Used vehicles 559.1 539.7 Parts, accessories, and other 199.5 184.2 Inventory $ 3,520.1 $ 3,612.0 The components of vehicle floorplan payables at December 31 are as follows: 2016 2015 Vehicle floorplan payable - trade $ 2,308.8 $ 2,565.8 Vehicle floorplan payable - non-trade 1,540.4 1,161.3 Vehicle floorplan payable $ 3,849.2 $ 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 vehicle 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 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 the 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% during 2016 and 1.8% during 2015 . At December 31, 2016 , the aggregate capacity under our floorplan credit agreements with various lenders to finance our new vehicle inventory was approximately $4.7 billion , of which $3.5 billion had been borrowed. Our used vehicle floorplan facilities utilize LIBOR-based interest rates, which averaged 2.1% during 2016 and 1.7% during 2015 . At December 31, 2016 , the aggregate capacity under our floorplan credit agreements with various lenders to finance a portion of our used vehicle inventory was $430.0 million , of which $377.8 million had been borrowed. The remaining borrowing capacity of $52.2 million was limited to $0.3 million based on the eligible used vehicle inventory that could have been pledged as collateral. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET A summary of property and equipment, net, at December 31 is as follows: 2016 2015 Land $ 1,267.4 $ 1,178.4 Buildings and improvements 2,009.6 1,856.6 Furniture, fixtures, and equipment 659.4 642.2 3,936.4 3,677.2 Less: accumulated depreciation and amortization (1,093.2 ) (1,009.8 ) Property and equipment, net $ 2,843.2 $ 2,667.4 We capitalized interest in connection with various construction projects to build, upgrade, or remodel our facilities of $0.5 million in 2016 , $0.9 million in 2015 , and $1.2 million in 2014 . |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill and intangible assets, net, at December 31 consisted of the following: 2016 2015 Goodwill $ 1,511.3 $ 1,394.5 Franchise rights - indefinite-lived $ 589.4 $ 432.4 Other intangible assets 16.3 14.3 605.7 446.7 Less: accumulated amortization (7.5 ) (6.8 ) Intangible assets, net $ 598.2 $ 439.9 Goodwill Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 were as follows: Domestic Import Premium Luxury Corporate and other Consolidated Goodwill at January 1, 2015 (1) $ 175.1 $ 551.6 $ 588.0 $ — $ 1,314.7 Acquisitions, dispositions, and other adjustments 28.0 19.3 32.5 — 79.8 Goodwill at December 31, 2015 (1) 203.1 570.9 620.5 — 1,394.5 Acquisitions, dispositions, and other adjustments 49.0 (12.7 ) 76.9 3.6 116.8 Goodwill at December 31, 2016 (1) $ 252.1 $ 558.2 $ 697.4 $ 3.6 $ 1,511.3 (1) Net of accumulated impairment losses of $1.47 billion associated with our single reporting unit (prior to September 30, 2008, our reporting unit structure was comprised of a single reporting unit) and $140.0 million associated with our Domestic reporting unit, both of which were recorded during the year ended December 31, 2008. Intangible Assets Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers. As of December 31, 2016 , we had $589.4 million of franchise rights recorded on our Consolidated Balance Sheet, of which $198.0 million was related to Domestic stores, $110.4 million was related to Import stores, and $281.0 million was related to Premium Luxury stores. See Note 16 of the Notes to Consolidated Financial Statements for more information about our annual impairment tests of goodwill and franchise rights. |
Self-Insurance
Self-Insurance | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Self-Insurance | SELF-INSURANCE At December 31, 2016 and 2015 , current and long-term self-insurance liabilities were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows: 2016 2015 Self-insurance - current portion $ 27.2 $ 27.2 Self-insurance - long-term portion 48.7 47.6 Total self-insurance liabilities $ 75.9 $ 74.8 |
Long-Term Debt and Commercial P
Long-Term Debt and Commercial Paper | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-Term Debt and Commerical Paper | LONG-TERM DEBT AND COMMERCIAL PAPER Long-term debt at December 31 consisted of the following: 2016 2015 6.75% Senior Notes due 2018 $ 400.0 $ 400.0 5.5% Senior Notes due 2020 350.0 350.0 3.35% Senior Notes due 2021 300.0 300.0 4.5% Senior Notes due 2025 450.0 450.0 Revolving credit facility due 2019 — — Mortgage facility (1) 153.2 175.7 Capital leases and other debt 136.2 95.0 1,789.4 1,770.7 Less: unamortized debt discounts and debt issuance costs (10.8 ) (13.7 ) Less: current maturities (167.5 ) (11.7 ) Long-term debt, net of current maturities $ 1,611.1 $ 1,745.3 (1) The mortgage facility requires monthly principal and interest payments of $1.6 million based on a fixed amortization schedule with a balloon payment of $143.9 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. At December 31, 2016 , aggregate maturities of non-vehicle long-term debt were as follows: Year Ending December 31: 2017 $ 167.5 2018 411.4 2019 43.0 2020 353.5 2021 303.4 Thereafter 510.6 $ 1,789.4 Senior Unsecured Notes and Credit Agreement At December 31, 2016 , we had outstanding $400.0 million of 6.75% Senior Notes due 2018. Interest is payable on April 15 and October 15 of each year. These notes will mature on April 15, 2018 . At December 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 December 31, 2016 , we had outstanding $300.0 million of 3.35% Senior Notes due 2021. Interest is payable on January 15 and July 15 of each year. These notes will mature on January 15, 2021 . At December 31, 2016 , we had outstanding $450.0 million of 4.5% Senior Notes due 2025. Interest 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 December 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 December 31, 2016 , leaving an additional borrowing capacity under the revolving credit facility of $1.8 billion at December 31, 2016 . As of December 31, 2016 , this borrowing capacity was limited under the maximum consolidated leverage ratio contained in our credit agreement to $1.1 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 applicable margin. 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 December 31, 2016 , we had $153.2 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 $1.6 million based on a fixed amortization schedule with a balloon payment of $143.9 million due November 2017. We are subject to make-whole payments if the mortgage facility is prepaid prior to its maturity date. During the fourth quarter of 2016, in connection with the divestiture of a property included in the facility, we repaid $12.1 million of the mortgage facility and made a make-whole payment of $0.5 million . At December 31, 2016 , we had capital lease and other debt obligations of $136.2 million , which are due at various dates through 2036 . See Note 8 of the Notes to Consolidated Financial Statements for more information related to capital lease obligations. 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 December 31, 2016 , we had $942.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 1.26% and a weighted-average remaining term of 24 days . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 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 December 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 any of these matters will have a material adverse effect on our results of operations, financial condition, or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our results of operations, financial condition, or cash flows. Lease Commitments We lease real property, equipment, and software under various operating leases, most of which have terms from one to twenty-five years. Expenses under real property, equipment, and software leases were $52.8 million in 2016 , $51.4 million in 2015 , and $49.0 million in 2014 . The leases require payment of real estate taxes, insurance, and maintenance in addition to rent. Most of the leases contain renewal options, rent abatements, and rent escalation clauses. Lease expense is recognized on a straight-line basis over the term of the lease, including any option periods, as appropriate. The same lease term is used for lease classification, the amortization period of related leasehold improvements, and the estimation of future lease commitments. Future minimum lease obligations under non-cancelable real property, equipment, and software leases with initial terms in excess of one year at December 31, 2016 , are as follows: Noncancelable Lease Commitments Capital (1) Operating (1) (2) 2017 $ 20.0 $ 45.6 2018 16.2 42.7 2019 32.4 39.2 2020 7.0 37.8 2021 6.7 31.2 Thereafter 82.5 236.8 Total minimum lease payments $ 164.8 $ 433.3 Less: Amounts representing interest (46.7 ) $ 118.1 (1) Amounts for capital and operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. In 2016 , these charges totaled approximately $24 million . (2) Future minimum operating lease payments do not reflect future minimum sublease income of $1.1 million . Additionally, operating leases that are on a month-to-month basis are not included. Other Matters AutoNation, acting through its subsidiaries, is the lessee under many real estate leases that provide for the use by our subsidiaries of their respective dealership premises. Pursuant to these leases, our subsidiaries generally agree to indemnify the lessor and other related parties from certain liabilities arising as a result of the use of the leased premises, including environmental liabilities, or a breach of the lease by the lessee. Additionally, from time to time, we enter into agreements with third parties in connection with the sale of assets or businesses in which we agree to indemnify the purchaser or related parties from certain liabilities or costs arising in connection with the assets or business. Also, in the ordinary course of business in connection with purchases or sales of goods and services, we enter into agreements that may contain indemnification provisions. In the event that an indemnification claim is asserted, our liability would be limited by the terms of the applicable agreement. From time to time, primarily in connection with dispositions of automotive stores, our subsidiaries assign or sublet to the dealership purchaser the subsidiaries’ interests in any real property leases associated with such stores. In general, our subsidiaries retain responsibility for the performance of certain obligations under such leases to the extent that the assignee or sublessee does not perform, whether such performance is required prior to or following the assignment or subletting of the lease. Additionally, AutoNation and its subsidiaries generally remain subject to the terms of any guarantees made by us in connection with such leases. We generally have indemnification rights against the assignee or sublessee in the event of non-performance under these leases, as well as certain defenses. We presently have no reason to believe that we or our subsidiaries will be called on to perform under any such remaining assigned leases or subleases. We estimate that lessee rental payment obligations during the remaining terms of these leases with expirations ranging from 2017 to 2034 are approximately $24 million at December 31, 2016 . There can be no assurance that any performance of AutoNation or its subsidiaries required under these leases would not have a material adverse effect on our business, financial condition, and cash flows. At December 31, 2016 , surety bonds, letters of credit, and cash deposits totaled $102.7 million , of which $44.1 million represented letters of credit. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance. We do not currently provide cash collateral for outstanding letters of credit. In the ordinary course of business, we are subject to numerous laws and regulations, including automotive, environmental, health and safety, and other laws and regulations. We do not anticipate that the costs of such compliance will have a material adverse effect on our business, consolidated results of operations, cash flows, or financial condition, although such outcome is possible given the nature of our operations and the extensive legal and regulatory framework applicable to our business. We do not have any material known environmental commitments or contingencies. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY A summary of shares repurchased under our share repurchase program authorized by our Board of Directors follows: 2016 2015 2014 Shares repurchased 10.5 3.9 9.4 Aggregate purchase price $ 497.0 $ 235.1 $ 485.1 Average purchase price per share $ 47.30 $ 60.49 $ 51.59 As of December 31, 2016 , $298.6 million remained available under our stock repurchase limit most recently authorized by our Board of Directors. Our Board of Directors authorized the retirement of 43.0 million shares of our treasury stock in October 2015, which assumed the status of authorized but unissued shares. Upon the retirement of treasury stock, it is our policy to charge the excess of the cost of the treasury stock over its par value entirely to additional paid-in capital. Any amounts exceeding additional paid-in capital are charged to retained earnings. This retirement had the effect of reducing treasury stock and issued common stock, which includes treasury stock. Our common stock, additional paid-in capital, retained earnings, and treasury stock accounts were adjusted accordingly. There was no impact to shareholders’ equity or outstanding common stock. We have 5.0 million authorized shares of preferred stock, par value $0.01 per share, none of which are issued or outstanding. The Board of Directors has the authority to issue the preferred stock in one or more series and to establish the rights, preferences, and dividends. A summary of shares of common stock issued in connection with the exercise of stock options follows: 2016 2015 2014 Shares issued 0.3 1.3 1.7 Proceeds from the exercise of stock options $ 8.4 $ 30.0 $ 35.1 Average exercise price per share $ 31.21 $ 23.33 $ 20.50 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): 2016 2015 2014 Shares issued 143,424 159,442 154,540 Shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock 38,906 36,712 46,752 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The AutoNation, Inc. 2008 Equity and Incentive Plan (the “2008 Plan”) provides for the grant of stock options, stock appreciation rights, restricted stock, restricted stock units, and other stock-based and cash-based awards to employees. A maximum of 12.0 million shares may be issued under the 2008 Plan, provided that no more than 2.0 million shares may be issued pursuant to the grant of awards, other than options or stock appreciation rights, that are settled in shares. The exercise price of all stock options granted in 2016 under the 2008 Plan, is equal to the closing price of our common stock on the date such awards were granted. In January 2017, our Board, upon the recommendation of its Compensation Committee, discontinued the 2008 Plan and approved the AutoNation, Inc. 2017 Employee Equity and Incentive Plan (the “2017 Plan”), in each case subject to stockholder approval of the 2017 Plan at our 2017 Annual Meeting of Stockholders. The 2017 Plan provides for the grant of time-based and performance-based restricted stock units and restricted stock, stock options, stock appreciation rights, and other stock-based and cash-based awards to employees. A maximum of 5.5 million shares may be issued under the 2017 Plan. The AutoNation, Inc. 2014 Non-Employee Director Equity Plan (the “2014 Director Plan”) provides for the grant of stock options, restricted stock, restricted stock units, stock appreciation rights, and other stock-based awards to our non-employee directors. As of December 31, 2016, the total number of shares authorized for issuance under the 2014 Director Plan was 1.0 million . In January 2017, our Board reduced such number to 600,000 . No director may be granted awards in any calendar year with an aggregate grant date fair market value (determined, with respect to options and stock appreciation rights, based on a Black-Scholes or other option valuation methodology approved by the Compensation Committee) in excess of $750,000 per director. Stock Options In 2016 , the Compensation Committee of our Board of Directors approved the grant of 0.9 million employee stock options. The employee stock option awards were granted on March 1, 2016 and have an exercise price equal to the closing price per share on the grant date ( $52.53 ). Stock options granted under all plans are non-qualified. Upon exercise, shares of common stock are issued from our treasury stock. Employee stock options granted in 2016 have a term of 10 years from the date of grant and vest in equal installments over four years on the anniversary of the grant date. Employee stock options granted in 2015 and 2014 were granted quarterly, have a term of 10 years from the first date of grant, and vest in equal installments over four years commencing on June 1 of the year following the grant date. We use the Black-Scholes valuation model to determine compensation expense and amortize compensation expense on a straight-line basis, net of estimated forfeitures, over the requisite service period of the grants. Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost is recognized over the shorter of the stated vesting period or the period until employees become retirement-eligible. The following table summarizes the assumptions used related to the valuation of our stock options during 2016 , 2015 , and 2014 : Grant Year 2016 2015 2014 Risk-free interest rate 1.16% - 1.55% 0.76% - 1.86% 1.11% - 2.04% Expected dividend yield — — — Expected term 4 - 7 years 2 - 7 years 4 - 7 years Expected volatility 29% - 31% 24% - 34% 25% - 36% The risk-free interest rate is based on the U.S. Treasury yield curve at the time of the grant with a remaining term equal to the expected term used for stock options granted. The expected term of stock options granted is derived from historical data and represents the period of time that stock options are expected to be outstanding. The expected volatility is based on historical volatility, implied volatility, and other factors. The following table summarizes stock option activity during 2016 : Stock Options Shares (in millions) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Options outstanding at January 1 4.6 $ 45.07 Granted (1) 0.9 $ 52.53 Exercised (0.3 ) $ 31.21 Forfeited — $ — Expired — $ — Options outstanding as of December 31 5.2 $ 46.99 6.54 $ 31.8 Options exercisable at December 31 2.9 $ 40.33 5.27 $ 31.4 Options exercisable at December 31 and expected to vest thereafter 5.2 $ 46.92 6.53 $ 31.8 Options available for future grants at December 31 3.3 (2) (1) The options granted during 2016 are related to our annual employee stock option award grant on March 1, 2016 (2) Includes 2.5 million shares available under the 2008 Plan and 0.9 million shares available under the 2014 Director Plan. As noted above, the number of shares available under the 2014 Director Plan was reduced by 0.4 million shares in January 2017. If our stockholders approve the 2017 Plan, under which 5.5 million shares would be available for issuance, then no additional awards will be granted under the 2008 Plan, and the 2.5 million shares available under the 2008 Plan will no longer be available for issuance. The weighted average grant-date fair value of stock options granted and total intrinsic value of stock options exercised are summarized in the following table: 2016 2015 2014 Weighted average grant-date fair value of stock options granted $ 17.96 $ 19.38 $ 20.56 Total intrinsic value of stock options exercised (in millions) $ 5.3 $ 51.9 $ 56.2 Restricted Stock In 2016 , the Compensation Committee of our Board of Directors approved the grant of 0.1 million shares of restricted stock. Restricted stock awards are granted to restricted stock-eligible employees generally on the first trading day of March. Restricted stock awards are considered nonvested share awards as defined under generally accepted accounting principles and are issued from our treasury stock. Restricted stock awards granted in 2016 vest in equal installments over four years on the anniversary date of the grant. Restricted stock awards granted in 2015 and 2014 vest in equal installments over four years commencing on June 1 of the year following the grant date. Compensation cost for restricted stock awards is based on the closing price of our common stock on the date of grant and is recognized on a straight-line basis, net of estimated forfeitures, over the shorter of the stated vesting period or the period until employees become retirement-eligible. The following table summarizes information about vested and unvested restricted stock for 2016 : Restricted Stock Shares (in actual number of shares) Weighted-Average Grant Date Fair Value Nonvested at January 1 284,284 $ 53.11 Granted (1) 143,424 $ 52.23 Vested (128,640 ) $ 49.26 Forfeited (32,162 ) $ 55.23 Nonvested at December 31 266,906 $ 54.23 (1) The restricted stock awards granted during 2016 are primarily related to our employee annual restricted stock award grant in March 2016 . The weighted average grant-date fair value of restricted stock awards granted and total fair value of restricted stock awards vested are summarized in the following table: 2016 2015 2014 Weighted average grant-date fair value of restricted stock awards granted $ 52.23 $ 62.54 $ 52.87 Total fair value of restricted stock awards vested (in millions) $ 6.4 $ 8.8 $ 8.1 Restricted Stock Units On January 4, 2016, each of our non-employee directors received a grant of 4,259 restricted stock units (“RSUs”) under the 2014 Director Plan. RSUs granted to our non-employee directors are fully vested on the grant date and are settled in shares of the Company’s common stock on the first trading day of February in the third year following the grant date, unless the non-employee director elects to defer delivery in accordance with the terms of the award and the 2014 Director Plan. Settlement of the RSUs will be accelerated in certain circumstances as provided in the terms of the award and the 2014 Director Plan, including in the event the non-employee director ceases to serve as a non-employee director of the Company. Compensation cost is recognized on the grant date and is based on the closing price of our common stock on the grant date. The weighted average grant-date fair value and total grant-date fair value of RSUs granted (and vested) are summarized in the following table: 2016 2015 2014 Weighted average grant-date fair value of RSUs granted $ 58.69 $ 60.04 $ 53.57 Total fair value of RSUs granted (in millions) $ 2.3 $ 2.7 $ 2.1 Compensation Expense The following table summarizes the total stock-based compensation expense recognized in Selling, General, and Administrative Expenses in the Consolidated Statements of Income and the total recognized tax benefit related thereto: 2016 2015 2014 Stock options $ 16.2 $ 14.8 $ 18.4 Restricted stock 6.6 6.5 5.8 RSUs 2.3 2.7 2.1 Total stock-based compensation expense $ 25.1 $ 24.0 $ 26.3 Tax benefit related to stock-based compensation expense $ 9.6 $ 9.2 $ 10.0 As of December 31, 2016 , there was $22.7 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, of which $14.0 million relates to stock options and $8.7 million relates to restricted stock. These amounts are expected to be recognized over a weighted average period of 1.68 years. We realized tax benefits related to stock options exercised and vesting of restricted stock of $4.8 million in 2016 , $23.3 million in 2015 , and $24.1 million in 2014 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of the income tax provision from continuing operations for the years ended December 31 are as follows: 2016 2015 2014 Current: Federal $ 234.9 $ 235.0 $ 220.9 State 31.4 34.1 32.2 Federal and state deferred 3.7 10.3 9.5 Change in valuation allowance, net 0.3 0.1 — Adjustments and settlements 0.3 (0.5 ) (0.1 ) Income tax provision $ 270.6 $ 279.0 $ 262.5 A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows: 2016 % 2015 % 2014 % Income tax provision at statutory rate $ 245.8 35.0 $ 253.0 35.0 $ 238.8 35.0 Non-deductible expenses (income), net 4.6 0.7 3.5 0.5 1.3 0.2 State income taxes, net of federal benefit 21.7 3.1 23.6 3.3 23.2 3.4 272.1 38.8 280.1 38.8 263.3 38.6 Change in valuation allowance, net 0.3 — 0.1 — — — Adjustments and settlements 0.3 — (0.5 ) (0.1 ) (0.1 ) — Other, net (2.1 ) (0.3 ) (0.7 ) (0.1 ) (0.7 ) (0.1 ) Income tax provision $ 270.6 38.5 $ 279.0 38.6 $ 262.5 38.5 Deferred income tax asset and liability components at December 31 are as follows: 2016 2015 Deferred income tax assets: Inventory $ 36.8 $ 35.1 Receivable allowances 3.3 2.9 Warranty, chargeback, and self-insurance liabilities 71.2 63.5 Other accrued liabilities 33.1 32.6 Deferred compensation 31.8 28.5 Stock-based compensation 25.7 24.3 Loss carryforwards—federal and state 5.4 13.3 Other, net 17.1 6.8 Total deferred income tax assets 224.4 207.0 Valuation allowance (2.5 ) (2.4 ) Deferred income tax assets, net of valuation allowance 221.9 204.6 Deferred income tax liabilities: Long-lived assets (intangible assets and property) (293.3 ) (263.8 ) Other, net (20.1 ) (19.4 ) Total deferred income tax liabilities (313.4 ) (283.2 ) Net deferred income tax liabilities $ (91.5 ) $ (78.6 ) Our net deferred tax liability of $91.5 million as of December 31, 2016 and $78.6 million as of December 31, 2015 is classified as Deferred Income Taxes in the accompanying Consolidated Balance Sheets. Income taxes receivable included in Receivables, net totaled $11.6 million at December 31, 2016 and $11.7 million at December 31, 2015 . At December 31, 2016 , we had $80.8 million of gross domestic state net operating loss carryforwards and capital loss carryforwards, and $4.1 million of state tax credits, all of which result in a deferred tax asset of $6.0 million and expire from 2017 through 2036 . At December 31, 2016 , we had $2.5 million of valuation allowance related to these loss carryforwards. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We provide valuation allowances to offset portions of deferred tax assets due to uncertainty surrounding the future realization of such deferred tax assets. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. We file income tax returns in the U.S. federal jurisdiction and various states. As a matter of course, various taxing authorities, including the IRS, regularly audit us. These audits may result in proposed assessments where the ultimate resolution may result in our owing additional taxes. Currently, no tax years are under examination by the IRS and tax years from 2009 to 2015 are under examination by U.S. state jurisdictions. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 Balance at January 1 $ 5.6 $ 4.9 $ 4.8 Additions based on tax positions related to the current year — — — Additions for tax positions of prior years 0.8 0.7 0.9 Reductions for tax positions of prior years (0.4 ) — (0.1 ) Reductions for expirations of statute of limitations (0.2 ) — (0.4 ) Settlements — — (0.3 ) Balance at December 31 $ 5.8 $ 5.6 $ 4.9 We had accumulated interest and penalties associated with these unrecognized tax benefits of $6.1 million at December 31, 2016 , $5.5 million at December 31, 2015 , and $5.3 million at December 31, 2014 . We additionally had a deferred tax asset of $4.2 million at December 31, 2016 , $4.0 million at December 31, 2015 , and $3.6 million at December 31, 2014 , related to these balances. The net of the unrecognized tax benefits, associated interest, penalties, and deferred tax asset was $7.7 million at December 31, 2016 , $7.1 million at December 31, 2015 , and $6.6 million at December 31, 2014 , which if resolved favorably (in whole or in part) would reduce our effective tax rate. The unrecognized tax benefits, associated interest, penalties, and deferred tax asset are included as components of Other Liabilities and Deferred Income Taxes in the Consolidated Balance Sheets. It is our policy to account for interest and penalties associated with income tax obligations as a component of income tax expense. We recognized $0.4 million during 2016 , $0.4 million during 2015 , and $0.3 million during 2014 (each net of tax effect), of interest and penalties as part of the provision for income taxes in the Consolidated Statements of Income. We do not expect that our unrecognized tax benefits will significantly increase or decrease during the twelve months beginning January 1, 2017 . |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Earnings (Loss) Per Share | EARNINGS (LOSS) PER SHARE Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are to be included in the computation of earnings per share (“EPS”) under the two-class method. Our restricted stock awards are considered participating securities because they contain non-forfeitable rights to dividends. As the number of shares granted under such awards is immaterial, all earnings per share amounts reflect such shares as if they were fully vested shares and the disclosures associated with the two-class method are not presented. Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards 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: 2016 2015 2014 Net income from continuing operations $ 431.7 $ 443.7 $ 419.8 Loss from discontinued operations, net of income taxes (1.2 ) (1.1 ) (1.1 ) Net income $ 430.5 $ 442.6 $ 418.7 Weighted average common shares outstanding used in calculating basic EPS 103.1 112.7 117.3 Effect of dilutive stock options 0.7 1.2 1.6 Weighted average common shares outstanding used in calculating diluted EPS 103.8 113.9 118.9 Basic EPS amounts: Continuing operations $ 4.19 $ 3.94 $ 3.58 Discontinued operations $ (0.01 ) $ (0.01 ) $ (0.01 ) Net income $ 4.18 $ 3.93 $ 3.57 Diluted EPS amounts: Continuing operations $ 4.16 $ 3.90 $ 3.53 Discontinued operations $ (0.01 ) $ (0.01 ) $ (0.01 ) Net income $ 4.15 $ 3.89 $ 3.52 A summary of anti-dilutive options excluded from the computation of diluted earnings per share is as follows: 2016 2015 2014 Anti-dilutive options excluded from the computation of diluted earnings per share 3.0 0.7 0.6 |
Divestitures
Divestitures | 12 Months Ended |
Dec. 31, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | DIVESTITURES During 2016 , we divested five Domestic stores and nine Import stores and recorded a net gain of $61.8 million . During 2015 , we divested three Import stores and recorded a gain of $7.4 million . During 2014 , we divested two Import stores and recorded a gain of $4.4 million . We also divested our customer lead distribution business and recorded a gain of $8.4 million during 2014. This business was reported in the “Corporate and other” category of our segment information. The gains on these divestitures are included in Other Income, Net (within Operating Income) in our Consolidated Statements of Income. The financial condition and results of operations of these businesses were not material to our consolidated financial statements. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS During 2016 , we purchased 20 stores located in Texas, New York, Colorado, California, and Maryland, which include Chrysler, Dodge, Jeep, Ram, Chevrolet, Hyundai, Mercedes-Benz, Sprinter, Jaguar, Land Rover, and BMW franchises . We also purchased a collision center in Illinois in 2016. Acquisitions are included in the Consolidated Financial Statements from the date of acquisition. The purchase price allocations for the business combinations in 2016 are preliminary and subject to final adjustment. We purchased 22 stores in 2015 and five stores in 2014 . The following table summarizes the consideration paid and estimated fair values of the assets acquired and liabilities assumed at the acquisition dates for the stores acquired during 2016 : Receivables, net $ 19.9 Inventory 272.4 Property and equipment 130.4 Goodwill 140.4 Franchise rights - indefinite-lived 169.2 Other assets 9.4 Accounts payable (9.0 ) Vehicle floorplan payable - non-trade (264.4 ) Deferred income taxes (7.5 ) Other liabilities (13.0 ) Aggregate purchase price 447.8 Capital leases and other obligations (37.4 ) Cash used in business acquisitions, net of cash acquired $ 410.4 The goodwill was assigned to the Domestic, Import, Premium Luxury, and “Corporate and other” reporting units in the amount of $57.9 million , $2.0 million , $76.9 million , and $3.6 million , respectively. We anticipate that substantially all of the goodwill recorded in 2016 will be deductible for federal income tax purposes. From each acquisition date of the 2016 acquisitions to December 31, 2016 , the amounts of revenue and earnings of the 20 stores and the collision center acquired included in our Consolidated Statement of Income for the year ended December 31, 2016 , were $790.5 million and $21.7 million , respectively. Our unaudited supplemental pro forma revenue and net income from continuing operations had the acquisition dates been January 1, 2015 are as follows: Years Ended December 31, Supplemental pro forma: 2016 2015 Revenue $ 21,945.6 $ 22,169.9 Net income from continuing operations $ 434.1 $ 469.4 The unaudited supplemental pro forma revenue and net income from continuing operations are presented for information purposes only and may not necessarily reflect the future results of operations of AutoNation or what the results of operations would have been had we owned and operated these businesses as of January 1, 2015 . |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Dec. 31, 2016 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Information | CASH FLOW INFORMATION We had non-cash investing and financing activities of $47.2 million related to capital leases and deferred purchase price commitments associated with our 2016 acquisitions. We had non-cash investing and financing activities primarily related to increases in property acquired under capital leases of $27.3 million during 2015 and $11.6 million during 2014 . We also had accrued purchases of property and equipment of $29.1 million at December 31, 2016 , $25.3 million at December 31, 2015 , and $16.3 million at December 31, 2014 . We made interest payments, net of amounts capitalized and including interest on vehicle inventory financing, of $183.9 million in 2016 , $135.3 million in 2015 , and $136.4 million in 2014 . We made income tax payments, net of income tax refunds, of $265.5 million in 2016 , $278.8 million in 2015 , and $225.0 million in 2014 . |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 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 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 consists primarily of amounts outstanding under our senior unsecured notes and mortgages. We estimate the fair value of our senior unsecured notes using quoted prices for the identical liability (Level 1). We estimate the fair value of our mortgages using a present value technique based on our current market interest rates for similar types of financial instruments (Level 2). A summary of the aggregate carrying values and fair values of our fixed rate long-term debt is as follows: December 31, 2016 December 31, 2015 Carrying value $ 1,778.6 $ 1,757.0 Fair value $ 1,862.2 $ 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 or disposal groups held for sale are assessed each reporting period they remain classified as held for sale. Subsequent changes in the held for sale long-lived asset’s or disposal group’s fair value less cost to sell (increase or decrease) are reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset or disposal group at the time it was initially classified as held for sale. The following table presents nonfinancial assets measured and recorded at fair value on a nonrecurring basis during the years ended December 31, 2016 and 2015 : 2016 2015 Description Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Gain/(Loss) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Gain/(Loss) Franchise rights $ — $ — $ 3.1 $ (15.4 ) Long-lived assets held and used $ 5.9 $ (1.9 ) $ 24.9 $ (3.1 ) Long-lived assets held for sale: Continuing operations $ 19.4 $ (12.1 ) $ 17.6 $ (3.0 ) Discontinued operations 12.7 (0.7 ) 5.3 (0.8 ) Total long-lived assets held for sale 32.1 (12.8 ) 22.9 (3.8 ) Goodwill and Other Intangible Assets Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it was necessary to calculate the fair values of our reporting units under the two-step goodwill impairment test. We completed our qualitative annual assessments of potential goodwill impairment as of April 30 , 2016 and 2015 , and we determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts. Accordingly, no impairment charges were recorded for the carrying value of goodwill during 2016 or 2015 . Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives. Under accounting standards, we chose to make a qualitative evaluation about the likelihood of franchise rights impairment to determine whether it was necessary to perform a quantitative impairment test. We completed our qualitative assessment of franchise rights impairment as of April 30 , 2016 and 2015. Based on our qualitative assessment of potential franchise rights impairment, we determined that we should perform a quantitative test for certain franchise rights, and no impairment charges resulted from these quantitative tests. As a result of the issues related to Volkswagen associated with certain of its diesel engine vehicles, during the fourth quarter of 2015, we performed a quantitative impairment test of the franchise rights recorded at our Volkswagen stores. As a result of this test, we recorded non-cash impairment charges during 2015 of $15.4 million to reduce the carrying values of the Volkswagen franchise rights to their estimated fair values. The non-cash impairment charges are reflected as Franchise Rights Impairment in the accompanying Consolidated Statements of Income. The quantitative impairment test for franchise rights requires the comparison of the franchise rights’ estimated fair value to carrying value by store. Fair values of rights under franchise agreements are estimated using Level 3 inputs by discounting expected future cash flows of the store. The forecasted cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates, margins, working capital requirements, capital expenditures, and cost of capital, for which we utilize certain market participant-based assumptions, using third-party industry projections, economic projections, and other marketplace data we believe to be reasonable. The development of the assumptions used in our annual impairment tests are coordinated by our financial planning and analysis group, and the assumptions are reviewed by management. 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. Long-lived Assets Held and Used in Continuing Operations We recorded non-cash impairment charges of $1.9 million in 2016 and $3.1 million in 2015 related to our long-lived assets held and used in continuing operations. These non-cash impairment charges are included in Other Income, Net (within Operating Income) in our Consolidated Statements of Income and are reported in the “Corporate and other” category of our segment information. Long-lived Assets Held for Sale in Continuing Operations We recorded non-cash impairment charges of $12.1 million in 2016 and $3.0 million in 2015 related to our long-lived assets held for sale in continuing operations. These non-cash impairment charges are included in Other Income, Net (within Operating Income) in our 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 non-cash impairment charges of $0.7 million in 2016 and $0.8 million in 2015 related to long-lived assets held for sale in discontinued operations. These non-cash impairment charges are included in Loss from Discontinued Operations in our Consolidated Statements of Income. As of December 31, 2016 , we had assets held for sale of $41.4 million in continuing operations and $15.7 million in discontinued operations. As of December 31, 2015 , we had assets held for sale of $47.1 million in continuing operations and $22.3 million in discontinued operations. |
Business and Credit Concentrati
Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Business And Credit Concentrations | BUSINESS AND CREDIT CONCENTRATIONS We own and operate franchised automotive stores in the United States pursuant to franchise agreements with vehicle manufacturers. In 2016 , approximately 64% of our total revenue was generated by our stores in Florida, Texas, and California. Franchise agreements generally provide the manufacturers or distributors with considerable influence over the operations of the store. The success of any franchised automotive dealership is dependent, to a large extent, on the financial condition, management, marketing, production, and distribution capabilities of the vehicle manufacturers or distributors of which we hold franchises. We had receivables from manufacturers or distributors of $234.9 million at December 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 Consolidated Balance Sheets, are due from automotive manufacturers’ captive finance subsidiaries which provide financing directly to our new and used vehicle customers. We purchase substantially all of our new vehicles from various manufacturers or distributors at the prevailing prices available to all franchised dealers. Additionally, we finance our new vehicle inventory primarily with automotive manufacturers’ captive finance subsidiaries. Our sales volume could be adversely impacted by the manufacturers’ or distributors’ inability to supply the stores with an adequate supply of vehicles and related financing. We are subject to a concentration of risk in the event of financial distress of or other adverse event related to a major vehicle manufacturer or related lender or supplier. The core brands of vehicles that we sell, representing approximately 94% of the new vehicles that we sold in 2016 , are manufactured by Toyota (including Lexus), Ford, Honda, General Motors, FCA US, Mercedes-Benz, Nissan, BMW, and Volkswagen (including Audi and Porsche) . Our business could be materially adversely impacted by another bankruptcy of or other adverse event related to a major vehicle manufacturer or related lender or supplier. Concentrations of credit risk with respect to non-manufacturer trade receivables are limited due to the wide variety of customers and markets in which our products are sold as well as their dispersion across many different geographic areas in the United States. Consequently, at December 31, 2016 , we do not consider AutoNation to have any significant non-manufacturer concentrations of credit risk. |
Chargeback Liability
Chargeback Liability | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Chargeback Liability | CHARGEBACK LIABILITY We may be charged back for commissions related to financing, vehicle service, or protection products in the event of early termination, default, or prepayment of the contracts by customers (“chargebacks”). However, our exposure to loss generally is limited to the commissions that we receive. These commissions are recorded at the time of the sale of the vehicles, net of an estimated liability for chargebacks. The following is a rollforward of our estimated chargeback liability for each of the three years presented in our Consolidated Financial Statements: 2016 2015 2014 Balance - January 1 $ 97.3 $ 84.9 $ 67.6 Add: Provisions 106.6 90.0 79.4 Deduct: Chargebacks (87.1 ) (77.6 ) (62.1 ) Balance - December 31 $ 116.8 $ 97.3 $ 84.9 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION At December 31, 2016 , 2015 , and 2014 , 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 General Motors, Ford, and FCA US. 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 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 finance 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. Years Ended December 31, 2016 2015 2014 Revenues: Domestic $ 7,810.0 $ 7,069.8 $ 6,359.5 Import 6,886.1 7,037.2 6,717.8 Premium Luxury 6,665.3 6,607.8 5,889.3 Total 21,361.4 20,714.8 18,966.6 Corporate and other 247.6 147.2 142.2 Total consolidated revenue $ 21,609.0 $ 20,862.0 $ 19,108.8 Years Ended December 31, 2016 2015 2014 Segment income (1) : Domestic $ 311.1 $ 336.9 $ 285.0 Import 296.8 311.4 291.3 Premium Luxury 350.2 376.2 366.1 Total 958.1 1,024.5 942.4 Corporate and other (145.1 ) (209.7 ) (174.9 ) Other interest expense (115.5 ) (90.9 ) (86.7 ) Loss on debt extinguishment — — (1.6 ) Interest income 1.1 0.1 0.2 Other income (loss), net 3.7 (1.3 ) 2.9 Income from continuing operations before income taxes $ 702.3 $ 722.7 $ 682.3 (1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. In the following tables of financial data, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures are reconciled to the consolidated totals as follows: Years Ended December 31, 2016 2015 2014 Floorplan interest expense: Domestic $ 33.7 $ 24.1 $ 24.4 Import 17.4 15.0 14.5 Premium Luxury 22.7 18.0 13.1 Corporate and other 2.7 1.2 1.3 Total floorplan interest expense $ 76.5 $ 58.3 $ 53.3 Years Ended December 31, 2016 2015 2014 Depreciation and amortization: Domestic $ 37.5 $ 31.0 $ 27.3 Import 35.4 32.9 31.0 Premium Luxury 40.7 35.0 28.3 Corporate and other 29.8 28.5 20.3 Total depreciation and amortization $ 143.4 $ 127.4 $ 106.9 Years Ended December 31, 2016 2015 2014 Capital expenditures: Domestic $ 62.5 $ 61.4 $ 61.7 Import 28.0 34.0 47.0 Premium Luxury 95.6 101.9 68.3 Corporate and other 67.1 69.6 20.8 Total capital expenditures $ 253.2 $ 266.9 $ 197.8 Years Ended December 31, 2016 2015 2014 Assets: Domestic $ 2,742.8 $ 2,573.9 $ 2,187.3 Import 2,065.5 2,145.2 1,997.7 Premium Luxury 2,603.4 2,554.6 2,051.0 Corporate and other: Goodwill 1,511.3 1,394.5 1,314.7 Franchise rights 589.4 432.4 348.1 Other Corporate and other assets 547.6 447.6 496.2 Total assets $ 10,060.0 $ 9,548.2 $ 8,395.0 |
Multiemployer Pension Plans
Multiemployer Pension Plans | 12 Months Ended |
Dec. 31, 2016 | |
Multiemployer Plans [Abstract] | |
Multiemployer Pension Plans | MULTIEMPLOYER PENSION PLANS Five of our 260 stores participate in multiemployer pension plans. We contribute to these multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: a. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be assumed by the remaining participating employers. c. If we choose to stop participating in a multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan, subject to certain limits, referred to as a withdrawal liability. One of the multiemployer pension plans in which we participate is designated as being in “red zone” status, as defined by the Pension Protection Act (PPA) of 2006. Our participation in this plan for the year ended December 31, 2016 , is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (EIN) and the three-digit plan number. The most recent PPA zone status available in 2016 and 2015 is for the plan’s year end at December 31, 2015 , and December 31, 2014 , respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The last column lists the expiration date of the collective-bargaining agreements to which the plan is subject. A rehabilitation plan has been implemented for this plan. There have been no significant changes that affect the comparability of 2016 , 2015 , and 2014 contributions. Pension Protection Act Zone Status Contributions of AutoNation ($ in millions) (1) Expiration Date of Collective-Bargaining Agreement Pension Fund EIN/Pension PlanNumber 2016 2015 2016 2015 2014 Surcharge Imposed Automotive Industries Pension Plan 94-1133245 - 001 Red Red $ 1.1 $ 1.0 $ 0.8 Yes (2) Other funds 0.4 0.4 0.3 Total contributions $ 1.5 $ 1.4 $ 1.1 (1) Our stores were not listed in the Automotive Industries Pension Plan’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2015 or 2014 . (2) We are party to two collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. One expired May 31, 2011, and one expired June 30, 2011, and both are currently extended during collective bargaining for new agreements. In the event that we cease participating in this plan, we could be assessed a withdrawal liability. We currently do not have any plans that would trigger the withdrawal liability under this multiemployer pension plan. |
Description of Business and S28
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries. All of our automotive dealership subsidiaries are indirectly wholly owned by the parent company, AutoNation, Inc. Intercompany accounts and transactions have been eliminated in the consolidation. |
Use of Estimates | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements. 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 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. |
Cash and Cash Equivalents | We consider all highly liquid investments with a maturity of three months or less as of the date of purchase to be cash equivalents unless the investments are legally or contractually restricted for more than three months. Under our cash management system, outstanding checks that are in excess of the cash balances at certain banks are included in Accounts Payable in the Consolidated Balance Sheets and changes in these amounts are reflected in operating cash flows in the accompanying Consolidated Statements of Cash Flows. |
Inventory | Inventory consists primarily of new and used vehicles held for sale, valued at the lower of cost or market using the specific identification method. Cost includes acquisition, reconditioning, dealer installed accessories, and transportation expenses. Our new vehicle inventory costs are generally reduced by manufacturer holdbacks (percentage of either the manufacturer’s suggested retail price or invoice price of a new vehicle that the manufacturer repays to the dealer), incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising assistance. Parts, accessories, and other inventory are valued at the lower of acquisition cost (first-in, first-out) or market. |
Property and Equipment, net | Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. In addition, we capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and depreciated over the estimated useful lives of the assets. Leased property meeting certain criteria is capitalized and the present value of the related lease payments is recorded as a liability and included in current and/or long-term debt based on the lease term. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in Other Income, Net (within Operating Income) in the Consolidated Statements of Income. See Note 4 of the Notes to Consolidated Financial Statements for detailed information about our property and equipment. Depreciation is recorded over the estimated useful lives of the assets involved using the straight-line method. Leasehold improvements and capitalized lease assets are amortized to depreciation expense over the estimated useful life of the asset or the respective lease term used in determining lease classification, whichever is shorter. The range of estimated useful lives is as follows: Buildings and improvements 5 to 40 years Furniture, fixtures, and equipment 3 to 10 years We continually evaluate property and equipment, including leasehold improvements, to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the remaining balance should be evaluated for possible impairment. We use an estimate of the related undiscounted cash flows over the remaining life of the property and equipment in assessing whether an asset has been impaired. We measure impairment losses based upon the amount by which the carrying amount of the asset exceeds the fair value. |
Goodwill and Other Intangible Assets, net | Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so. Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from five to thirty years. We do not amortize goodwill or franchise rights assets. Goodwill and franchise rights are tested for impairment annually or more frequently when events or changes in circumstances indicate that impairment may have occurred. |
Stock-Based Compensation | In 2016, 2015, and 2014, we granted stock-based awards in the form of stock options, restricted stock, and restricted stock units (“RSUs”). Stock options granted under all plans are non-qualified. Upon exercise, shares of common stock are issued from our treasury stock. We use the Black-Scholes valuation model to determine compensation expense associated with our stock options. Restricted stock awards, which are considered nonvested share awards as defined under generally accepted accounting principles, and RSUs are issued from our treasury stock. Compensation cost for restricted stock awards and RSUs is based on the closing price of our common stock on the date of grant. Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost for stock-based awards is recognized on a straight-line basis, net of estimated forfeitures, over the shorter of the stated vesting period or the period until employees become retirement-eligible. |
Revenue Recognition | Revenue consists of the sales of new and used vehicles, sales of parts and automotive services, commissions from finance and insurance products, and sales of other products. We recognize revenue (which excludes sales taxes) in the period in which products are sold or services are provided. The automotive services we provide include, but are not limited to, customer-paid repairs and maintenance, as well as repairs and maintenance under manufacturer warranties and extended service contracts. We recognize vehicle and finance and insurance revenue when a sales contract has been executed, the vehicle has been delivered, and payment has been received or financing has been arranged. Revenue on finance and insurance products represents commissions earned by us for the placement of: (i) loans and leases with financial institutions in connection with customer vehicle purchases financed, (ii) vehicle service contracts with third-party providers, and (iii) other protection products with third-party providers. We sell and receive a commission, which is recognized upon sale, on the following types of products: extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products. The products we offer include products that are sold and administered by independent third parties, including the vehicle manufacturers’ captive finance subsidiaries. Pursuant to our arrangements with these third-party providers, we primarily sell the products on a straight commission basis; however, we may sell the product, recognize commission, and participate in future profit pursuant to retrospective commission arrangements with the issuers of those contracts, which is recognized as earned. |
Revenue Recognition, Chargebacks | Certain commissions earned from the sales of finance and insurance products are subject to chargeback should the contracts be terminated prior to their expirations. An estimated liability for chargebacks against revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized. Our estimated liability for chargebacks is based primarily on our historical chargeback experience, and is influenced by the volume of vehicle sales in recent years, product penetration, product mix, and increases or decreases in early termination rates resulting from cancellation of vehicle service contracts and other protection products, defaults, refinancings and payoffs before maturity, and other factors. |
Insurance | Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, employee medical benefits, automobile, and workers’ compensation. Costs in excess of this retained risk per claim may be insured under various contracts with third-party insurance carriers. We review our claim and loss history on a periodic basis to assist in assessing our future liability. The ultimate costs of these retained insurance risks are estimated by management and by third-party actuarial evaluation of historical claims experience, adjusted for current trends and changes in claims-handling procedures. |
Manufacturer Incentives and Other Rebates | We receive various incentives from manufacturers based on achieving certain objectives, such as specified sales volume targets, as well as other objectives, including maintaining standards of a particular vehicle brand, which may include but are not limited to facility image and design requirements, customer satisfaction survey results, and training standards, among others. These incentives are typically based upon units purchased or sold. These manufacturer incentives are recognized as a reduction of new vehicle cost of sales when earned, generally at the time the related vehicles are sold or upon attainment of the particular program goals, whichever is later. We also receive manufacturer rebates and assistance for holdbacks, floorplan interest, and non-reimbursement-based advertising expenses (described below), which are reflected as a reduction in the carrying value of each vehicle purchased by us. We recognize holdbacks, floorplan interest assistance, non-reimbursement-based advertising rebates, cash incentives, and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold. |
Advertising | We generally expense the cost of advertising as incurred, net of earned manufacturer reimbursements for specific advertising costs and other discounts. |
Advertising, Manufacturer Reimbursement-based Assistance | Manufacturer advertising rebates that are reimbursements of costs associated with specific advertising expenses are earned in accordance with the respective manufacturers’ reimbursement-based advertising assistance programs, which is typically after we have incurred the corresponding advertising expenses, and are reflected as a reduction of advertising expense. |
Parts and Service Internal Profit | Our parts and service departments recondition the majority of used vehicles acquired by our used vehicle departments and perform minor preparatory work on new vehicles acquired by our new vehicle departments. The parts and service departments charge the new and used vehicle departments as if they were third parties in order to account for total activity performed by that department. Revenues and costs of sales associated with the internal work performed by our parts and service departments are reflected in our parts and service results in our Consolidated Statements of Income. New and used vehicle revenues and costs of sales are reduced by the amount of the intracompany charge. As a result, the revenues and costs of sales associated with the internal work performed by our parts and service departments are eliminated in consolidation. We also maintain an allowance for internal profit on vehicles that have not been sold. |
Income Taxes | We file a consolidated federal income tax return. Deferred income taxes have been provided for temporary differences between the recognition of revenue and expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the financial statements. |
Taxes Assessed by Governmental Authorities | Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue in our Consolidated Financial Statements. |
Earnings (Loss) Per Share | Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards which contain rights to non-forfeitable dividends and vested restricted stock unit awards. Diluted earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options. |
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 or disposal groups held for sale are assessed each reporting period they remain classified as held for sale. Subsequent changes in the held for sale long-lived asset’s or disposal group’s fair value less cost to sell (increase or decrease) are reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset or disposal group at the time it was initially classified as held for sale. |
Goodwill | Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment to determine whether it was necessary to calculate the fair values of our reporting units under the two-step goodwill impairment test. |
Intangible Assets, Indefinite-Lived | Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives. Under accounting standards, we chose to make a qualitative evaluation about the likelihood of franchise rights impairment to determine whether it was necessary to perform a quantitative impairment test. |
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 direct 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 as 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 were to be applied retrospectively and were effective for interim and annual reporting periods beginning after December 15, 2015. We adopted this 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. See Note 7 of the Notes to 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. Early adoption is permitted only as of reporting periods beginning after December 31, 2016. We will adopt this accounting standard update effective January 1, 2018. While we are currently evaluating the method of adoption and the impact of the provisions of this accounting standard update, we expect similar performance obligations to result under this update as compared with deliverables and separate units of accounting currently identified. As a result, we expect the timing of our revenue recognition to generally remain the same. 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 will adopt this accounting standard update effective January 1, 2019. While we are still evaluating the impact of adopting this update on our consolidated financial statements, we expect that upon adoption the right-of-use assets and lease liabilities recorded could be material to our consolidated balance sheets. However, we do not expect a material impact to our consolidated statements of income. 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. We adopted this accounting standard update effective January 1, 2017, and the cumulative-effect adjustment to equity was not material. Classification of Certain Cash Receipts and Cash Payments In August 2016, the FASB issued an accounting standard update that provides classification guidance on eight specific cash flow issues, for which guidance previously did not exist or was unclear. The amendments in this accounting standard update are effective for periods beginning after December 15, 2017. Early adoption is permitted for any entity in any interim or annual period. We will adopt this accounting standard update effective January 1, 2018. The provisions of this accounting standard update will not have a material impact on our consolidated statements of cash flows. |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Components Of Receivables, Net Of Allowance For Doubtful Accounts | The components of receivables, net of allowance for doubtful accounts, at December 31 are as follows: 2016 2015 Trade receivables $ 147.6 $ 133.6 Manufacturer receivables 234.9 221.4 Other 48.7 38.0 431.2 393.0 Less: allowances for doubtful accounts (5.8 ) (4.5 ) 425.4 388.5 Contracts-in-transit and vehicle receivables 595.9 508.0 Income taxes receivable (See Note 11) 11.6 11.7 Receivables, net $ 1,032.9 $ 908.2 |
Inventory and Vehicle Floorpl30
Inventory and Vehicle Floorplan Payable (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Inventory And Vehicle Floorplan Payable [Abstract] | |
Components Of Inventory | The components of inventory at December 31 are as follows: 2016 2015 New vehicles $ 2,761.5 $ 2,888.1 Used vehicles 559.1 539.7 Parts, accessories, and other 199.5 184.2 Inventory $ 3,520.1 $ 3,612.0 |
Components Of Vehicle Floorplan Payable | The components of vehicle floorplan payables at December 31 are as follows: 2016 2015 Vehicle floorplan payable - trade $ 2,308.8 $ 2,565.8 Vehicle floorplan payable - non-trade 1,540.4 1,161.3 Vehicle floorplan payable $ 3,849.2 $ 3,727.1 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | A summary of property and equipment, net, at December 31 is as follows: 2016 2015 Land $ 1,267.4 $ 1,178.4 Buildings and improvements 2,009.6 1,856.6 Furniture, fixtures, and equipment 659.4 642.2 3,936.4 3,677.2 Less: accumulated depreciation and amortization (1,093.2 ) (1,009.8 ) Property and equipment, net $ 2,843.2 $ 2,667.4 |
Goodwill and Intangible Asset32
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and intangible assets, net, at December 31 consisted of the following: 2016 2015 Goodwill $ 1,511.3 $ 1,394.5 Franchise rights - indefinite-lived $ 589.4 $ 432.4 Other intangible assets 16.3 14.3 605.7 446.7 Less: accumulated amortization (7.5 ) (6.8 ) Intangible assets, net $ 598.2 $ 439.9 |
Goodwill Allocated to Reporting Units and Changes in Carrying Amounts | Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the years ended December 31, 2016 and 2015 were as follows: Domestic Import Premium Luxury Corporate and other Consolidated Goodwill at January 1, 2015 (1) $ 175.1 $ 551.6 $ 588.0 $ — $ 1,314.7 Acquisitions, dispositions, and other adjustments 28.0 19.3 32.5 — 79.8 Goodwill at December 31, 2015 (1) 203.1 570.9 620.5 — 1,394.5 Acquisitions, dispositions, and other adjustments 49.0 (12.7 ) 76.9 3.6 116.8 Goodwill at December 31, 2016 (1) $ 252.1 $ 558.2 $ 697.4 $ 3.6 $ 1,511.3 (1) Net of accumulated impairment losses of $1.47 billion associated with our single reporting unit (prior to September 30, 2008, our reporting unit structure was comprised of a single reporting unit) and $140.0 million associated with our Domestic reporting unit, both of which were recorded during the year ended December 31, 2008. |
Self-Insurance (Tables)
Self-Insurance (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Insurance [Abstract] | |
Current and long-term self-insurance liabilities | At December 31, 2016 and 2015 , current and long-term self-insurance liabilities were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows: 2016 2015 Self-insurance - current portion $ 27.2 $ 27.2 Self-insurance - long-term portion 48.7 47.6 Total self-insurance liabilities $ 75.9 $ 74.8 |
Long-Term Debt and Commercial34
Long-Term Debt and Commercial Paper (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt at December 31 consisted of the following: 2016 2015 6.75% Senior Notes due 2018 $ 400.0 $ 400.0 5.5% Senior Notes due 2020 350.0 350.0 3.35% Senior Notes due 2021 300.0 300.0 4.5% Senior Notes due 2025 450.0 450.0 Revolving credit facility due 2019 — — Mortgage facility (1) 153.2 175.7 Capital leases and other debt 136.2 95.0 1,789.4 1,770.7 Less: unamortized debt discounts and debt issuance costs (10.8 ) (13.7 ) Less: current maturities (167.5 ) (11.7 ) Long-term debt, net of current maturities $ 1,611.1 $ 1,745.3 (1) The mortgage facility requires monthly principal and interest payments of $1.6 million based on a fixed amortization schedule with a balloon payment of $143.9 million due November 2017. |
Aggregate maturities of non-vehicle long-term debt | At December 31, 2016 , aggregate maturities of non-vehicle long-term debt were as follows: Year Ending December 31: 2017 $ 167.5 2018 411.4 2019 43.0 2020 353.5 2021 303.4 Thereafter 510.6 $ 1,789.4 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Minimum Lease Obligations | Future minimum lease obligations under non-cancelable real property, equipment, and software leases with initial terms in excess of one year at December 31, 2016 , are as follows: Noncancelable Lease Commitments Capital (1) Operating (1) (2) 2017 $ 20.0 $ 45.6 2018 16.2 42.7 2019 32.4 39.2 2020 7.0 37.8 2021 6.7 31.2 Thereafter 82.5 236.8 Total minimum lease payments $ 164.8 $ 433.3 Less: Amounts representing interest (46.7 ) $ 118.1 (1) Amounts for capital and operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. In 2016 , these charges totaled approximately $24 million . (2) Future minimum operating lease payments do not reflect future minimum sublease income of $1.1 million . |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shares Repurchased Under Share Repurchase Program | A summary of shares repurchased under our share repurchase program authorized by our Board of Directors follows: 2016 2015 2014 Shares repurchased 10.5 3.9 9.4 Aggregate purchase price $ 497.0 $ 235.1 $ 485.1 Average purchase price per share $ 47.30 $ 60.49 $ 51.59 |
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: 2016 2015 2014 Shares issued 0.3 1.3 1.7 Proceeds from the exercise of stock options $ 8.4 $ 30.0 $ 35.1 Average exercise price per share $ 31.21 $ 23.33 $ 20.50 |
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): 2016 2015 2014 Shares issued 143,424 159,442 154,540 Shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock 38,906 36,712 46,752 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Assumptions Used Relating to Valuation of Stock Options | The following table summarizes the assumptions used related to the valuation of our stock options during 2016 , 2015 , and 2014 : Grant Year 2016 2015 2014 Risk-free interest rate 1.16% - 1.55% 0.76% - 1.86% 1.11% - 2.04% Expected dividend yield — — — Expected term 4 - 7 years 2 - 7 years 4 - 7 years Expected volatility 29% - 31% 24% - 34% 25% - 36% |
Stock Option Activity | The following table summarizes stock option activity during 2016 : Stock Options Shares (in millions) Weighted- Average Exercise Price Weighted- Average Remaining Contractual Term (Years) Aggregate Intrinsic Value (in millions) Options outstanding at January 1 4.6 $ 45.07 Granted (1) 0.9 $ 52.53 Exercised (0.3 ) $ 31.21 Forfeited — $ — Expired — $ — Options outstanding as of December 31 5.2 $ 46.99 6.54 $ 31.8 Options exercisable at December 31 2.9 $ 40.33 5.27 $ 31.4 Options exercisable at December 31 and expected to vest thereafter 5.2 $ 46.92 6.53 $ 31.8 Options available for future grants at December 31 3.3 (2) (1) The options granted during 2016 are related to our annual employee stock option award grant on March 1, 2016 (2) Includes 2.5 million shares available under the 2008 Plan and 0.9 million shares available under the 2014 Director Plan. As noted above, the number of shares available under the 2014 Director Plan was reduced by 0.4 million shares in January 2017. If our stockholders approve the 2017 Plan, under which 5.5 million shares would be available for issuance, then no additional awards will be granted under the 2008 Plan, and the 2.5 million shares available under the 2008 Plan will no longer be available for issuance. |
Weighted Average Grant-Date Fair Value of Stock Options Granted and Total Intrinsic Value of Stock Options Exercised | The weighted average grant-date fair value of stock options granted and total intrinsic value of stock options exercised are summarized in the following table: 2016 2015 2014 Weighted average grant-date fair value of stock options granted $ 17.96 $ 19.38 $ 20.56 Total intrinsic value of stock options exercised (in millions) $ 5.3 $ 51.9 $ 56.2 |
Restricted Stock Activity | The following table summarizes information about vested and unvested restricted stock for 2016 : Restricted Stock Shares (in actual number of shares) Weighted-Average Grant Date Fair Value Nonvested at January 1 284,284 $ 53.11 Granted (1) 143,424 $ 52.23 Vested (128,640 ) $ 49.26 Forfeited (32,162 ) $ 55.23 Nonvested at December 31 266,906 $ 54.23 (1) The restricted stock awards granted during 2016 are primarily related to our employee annual restricted stock award grant in March 2016 . |
Weighted Average Grant-Date Fair Value of Restricted Stock Awards Granted and Total Fair Value of Restricted Stock Awards Vested | The weighted average grant-date fair value of restricted stock awards granted and total fair value of restricted stock awards vested are summarized in the following table: 2016 2015 2014 Weighted average grant-date fair value of restricted stock awards granted $ 52.23 $ 62.54 $ 52.87 Total fair value of restricted stock awards vested (in millions) $ 6.4 $ 8.8 $ 8.1 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units Granted and Total Fair Value of Restricted Stock Units Granted and Vested | The weighted average grant-date fair value and total grant-date fair value of RSUs granted (and vested) are summarized in the following table: 2016 2015 2014 Weighted average grant-date fair value of RSUs granted $ 58.69 $ 60.04 $ 53.57 Total fair value of RSUs granted (in millions) $ 2.3 $ 2.7 $ 2.1 |
Total Stock-Based Compensation Expense | The following table summarizes the total stock-based compensation expense recognized in Selling, General, and Administrative Expenses in the Consolidated Statements of Income and the total recognized tax benefit related thereto: 2016 2015 2014 Stock options $ 16.2 $ 14.8 $ 18.4 Restricted stock 6.6 6.5 5.8 RSUs 2.3 2.7 2.1 Total stock-based compensation expense $ 25.1 $ 24.0 $ 26.3 Tax benefit related to stock-based compensation expense $ 9.6 $ 9.2 $ 10.0 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision From Continuing Operations | The components of the income tax provision from continuing operations for the years ended December 31 are as follows: 2016 2015 2014 Current: Federal $ 234.9 $ 235.0 $ 220.9 State 31.4 34.1 32.2 Federal and state deferred 3.7 10.3 9.5 Change in valuation allowance, net 0.3 0.1 — Adjustments and settlements 0.3 (0.5 ) (0.1 ) Income tax provision $ 270.6 $ 279.0 $ 262.5 |
Reconciliation of Income Tax Provision | A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows: 2016 % 2015 % 2014 % Income tax provision at statutory rate $ 245.8 35.0 $ 253.0 35.0 $ 238.8 35.0 Non-deductible expenses (income), net 4.6 0.7 3.5 0.5 1.3 0.2 State income taxes, net of federal benefit 21.7 3.1 23.6 3.3 23.2 3.4 272.1 38.8 280.1 38.8 263.3 38.6 Change in valuation allowance, net 0.3 — 0.1 — — — Adjustments and settlements 0.3 — (0.5 ) (0.1 ) (0.1 ) — Other, net (2.1 ) (0.3 ) (0.7 ) (0.1 ) (0.7 ) (0.1 ) Income tax provision $ 270.6 38.5 $ 279.0 38.6 $ 262.5 38.5 |
Deferred Income Tax Asset and Liability Components | Deferred income tax asset and liability components at December 31 are as follows: 2016 2015 Deferred income tax assets: Inventory $ 36.8 $ 35.1 Receivable allowances 3.3 2.9 Warranty, chargeback, and self-insurance liabilities 71.2 63.5 Other accrued liabilities 33.1 32.6 Deferred compensation 31.8 28.5 Stock-based compensation 25.7 24.3 Loss carryforwards—federal and state 5.4 13.3 Other, net 17.1 6.8 Total deferred income tax assets 224.4 207.0 Valuation allowance (2.5 ) (2.4 ) Deferred income tax assets, net of valuation allowance 221.9 204.6 Deferred income tax liabilities: Long-lived assets (intangible assets and property) (293.3 ) (263.8 ) Other, net (20.1 ) (19.4 ) Total deferred income tax liabilities (313.4 ) (283.2 ) Net deferred income tax liabilities $ (91.5 ) $ (78.6 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2016 2015 2014 Balance at January 1 $ 5.6 $ 4.9 $ 4.8 Additions based on tax positions related to the current year — — — Additions for tax positions of prior years 0.8 0.7 0.9 Reductions for tax positions of prior years (0.4 ) — (0.1 ) Reductions for expirations of statute of limitations (0.2 ) — (0.4 ) Settlements — — (0.3 ) Balance at December 31 $ 5.8 $ 5.6 $ 4.9 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |
Basic and Diluted EPS | The following table presents the calculation of basic and diluted EPS: 2016 2015 2014 Net income from continuing operations $ 431.7 $ 443.7 $ 419.8 Loss from discontinued operations, net of income taxes (1.2 ) (1.1 ) (1.1 ) Net income $ 430.5 $ 442.6 $ 418.7 Weighted average common shares outstanding used in calculating basic EPS 103.1 112.7 117.3 Effect of dilutive stock options 0.7 1.2 1.6 Weighted average common shares outstanding used in calculating diluted EPS 103.8 113.9 118.9 Basic EPS amounts: Continuing operations $ 4.19 $ 3.94 $ 3.58 Discontinued operations $ (0.01 ) $ (0.01 ) $ (0.01 ) Net income $ 4.18 $ 3.93 $ 3.57 Diluted EPS amounts: Continuing operations $ 4.16 $ 3.90 $ 3.53 Discontinued operations $ (0.01 ) $ (0.01 ) $ (0.01 ) Net income $ 4.15 $ 3.89 $ 3.52 |
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: 2016 2015 2014 Anti-dilutive options excluded from the computation of diluted earnings per share 3.0 0.7 0.6 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The following table summarizes the consideration paid and estimated fair values of the assets acquired and liabilities assumed at the acquisition dates for the stores acquired during 2016 : Receivables, net $ 19.9 Inventory 272.4 Property and equipment 130.4 Goodwill 140.4 Franchise rights - indefinite-lived 169.2 Other assets 9.4 Accounts payable (9.0 ) Vehicle floorplan payable - non-trade (264.4 ) Deferred income taxes (7.5 ) Other liabilities (13.0 ) Aggregate purchase price 447.8 Capital leases and other obligations (37.4 ) Cash used in business acquisitions, net of cash acquired $ 410.4 |
Business Acquisition, Pro Forma Information | Our unaudited supplemental pro forma revenue and net income from continuing operations had the acquisition dates been January 1, 2015 are as follows: Years Ended December 31, Supplemental pro forma: 2016 2015 Revenue $ 21,945.6 $ 22,169.9 Net income from continuing operations $ 434.1 $ 469.4 |
Financial Instruments and Fai41
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
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: December 31, 2016 December 31, 2015 Carrying value $ 1,778.6 $ 1,757.0 Fair value $ 1,862.2 $ 1,858.6 |
Nonfinancial Assets Measured and Recorded At Fair Value On A Nonrecurring Basis | The following table presents nonfinancial assets measured and recorded at fair value on a nonrecurring basis during the years ended December 31, 2016 and 2015 : 2016 2015 Description Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Gain/(Loss) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Gain/(Loss) Franchise rights $ — $ — $ 3.1 $ (15.4 ) Long-lived assets held and used $ 5.9 $ (1.9 ) $ 24.9 $ (3.1 ) Long-lived assets held for sale: Continuing operations $ 19.4 $ (12.1 ) $ 17.6 $ (3.0 ) Discontinued operations 12.7 (0.7 ) 5.3 (0.8 ) Total long-lived assets held for sale 32.1 (12.8 ) 22.9 (3.8 ) |
Chargeback Liability (Tables)
Chargeback Liability (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Rollforward of Estimated Chargeback Liability | The following is a rollforward of our estimated chargeback liability for each of the three years presented in our Consolidated Financial Statements: 2016 2015 2014 Balance - January 1 $ 97.3 $ 84.9 $ 67.6 Add: Provisions 106.6 90.0 79.4 Deduct: Chargebacks (87.1 ) (77.6 ) (62.1 ) Balance - December 31 $ 116.8 $ 97.3 $ 84.9 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segment Revenue | 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. Years Ended December 31, 2016 2015 2014 Revenues: Domestic $ 7,810.0 $ 7,069.8 $ 6,359.5 Import 6,886.1 7,037.2 6,717.8 Premium Luxury 6,665.3 6,607.8 5,889.3 Total 21,361.4 20,714.8 18,966.6 Corporate and other 247.6 147.2 142.2 Total consolidated revenue $ 21,609.0 $ 20,862.0 $ 19,108.8 |
Reportable Segment Income | Years Ended December 31, 2016 2015 2014 Segment income (1) : Domestic $ 311.1 $ 336.9 $ 285.0 Import 296.8 311.4 291.3 Premium Luxury 350.2 376.2 366.1 Total 958.1 1,024.5 942.4 Corporate and other (145.1 ) (209.7 ) (174.9 ) Other interest expense (115.5 ) (90.9 ) (86.7 ) Loss on debt extinguishment — — (1.6 ) Interest income 1.1 0.1 0.2 Other income (loss), net 3.7 (1.3 ) 2.9 Income from continuing operations before income taxes $ 702.3 $ 722.7 $ 682.3 (1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. |
Reportable Segment Floorplan Interest Expense, Depreciation and Amortization, and Capital Expenditures | Years Ended December 31, 2016 2015 2014 Floorplan interest expense: Domestic $ 33.7 $ 24.1 $ 24.4 Import 17.4 15.0 14.5 Premium Luxury 22.7 18.0 13.1 Corporate and other 2.7 1.2 1.3 Total floorplan interest expense $ 76.5 $ 58.3 $ 53.3 Years Ended December 31, 2016 2015 2014 Depreciation and amortization: Domestic $ 37.5 $ 31.0 $ 27.3 Import 35.4 32.9 31.0 Premium Luxury 40.7 35.0 28.3 Corporate and other 29.8 28.5 20.3 Total depreciation and amortization $ 143.4 $ 127.4 $ 106.9 Years Ended December 31, 2016 2015 2014 Capital expenditures: Domestic $ 62.5 $ 61.4 $ 61.7 Import 28.0 34.0 47.0 Premium Luxury 95.6 101.9 68.3 Corporate and other 67.1 69.6 20.8 Total capital expenditures $ 253.2 $ 266.9 $ 197.8 |
Reportable Segment Assets | Years Ended December 31, 2016 2015 2014 Assets: Domestic $ 2,742.8 $ 2,573.9 $ 2,187.3 Import 2,065.5 2,145.2 1,997.7 Premium Luxury 2,603.4 2,554.6 2,051.0 Corporate and other: Goodwill 1,511.3 1,394.5 1,314.7 Franchise rights 589.4 432.4 348.1 Other Corporate and other assets 547.6 447.6 496.2 Total assets $ 10,060.0 $ 9,548.2 $ 8,395.0 |
Multiemployer Pension Plans (Ta
Multiemployer Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Multiemployer Plans [Abstract] | |
Multiemployer Plans | One of the multiemployer pension plans in which we participate is designated as being in “red zone” status, as defined by the Pension Protection Act (PPA) of 2006. Our participation in this plan for the year ended December 31, 2016 , is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (EIN) and the three-digit plan number. The most recent PPA zone status available in 2016 and 2015 is for the plan’s year end at December 31, 2015 , and December 31, 2014 , respectively. The zone status is based on information that we received from the plan and is certified by the plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The last column lists the expiration date of the collective-bargaining agreements to which the plan is subject. A rehabilitation plan has been implemented for this plan. There have been no significant changes that affect the comparability of 2016 , 2015 , and 2014 contributions. Pension Protection Act Zone Status Contributions of AutoNation ($ in millions) (1) Expiration Date of Collective-Bargaining Agreement Pension Fund EIN/Pension PlanNumber 2016 2015 2016 2015 2014 Surcharge Imposed Automotive Industries Pension Plan 94-1133245 - 001 Red Red $ 1.1 $ 1.0 $ 0.8 Yes (2) Other funds 0.4 0.4 0.3 Total contributions $ 1.5 $ 1.4 $ 1.1 (1) Our stores were not listed in the Automotive Industries Pension Plan’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2015 or 2014 . (2) We are party to two collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. One expired May 31, 2011, and one expired June 30, 2011, and both are currently extended during collective bargaining for new agreements. |
Description of Business and S45
Description of Business and Summary of Significant Accounting Policies (Organization and Business, Inventory) (Details) | 12 Months Ended |
Dec. 31, 2016brandstoresfranchises | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Owned and operated new vehicle franchises | franchises | 371 |
Number of stores | stores | 260 |
Number of brands | brand | 35 |
Percentage of new vehicle sales core brand vehicles | 94.00% |
Description of Business and S46
Description of Business and Summary of Significant Accounting Policies (Property and Equipment Net) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Nonrecurring [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Impairment of long-lived assets for sale | $ 12.8 | $ 3.8 |
Nonrecurring [Member] | Continuing Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Impairment of long-lived assets held and used | 1.9 | 3.1 |
Impairment of long-lived assets for sale | 12.1 | 3 |
Nonrecurring [Member] | Discontinued Operations, Held-for-sale [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Impairment of long-lived assets for sale | 0.7 | 0.8 |
Reported Value Measurement [Member] | Continuing Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Long-lived assets held for sale | 41.4 | 47.1 |
Reported Value Measurement [Member] | Discontinued Operations, Held-for-sale [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Long-lived assets held for sale | $ 15.7 | $ 22.3 |
Buildings and improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 5 years | |
Buildings and improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 40 years | |
Furniture, fixtures, and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 3 years | |
Furniture, fixtures, and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 10 years |
Description of Business and S47
Description of Business and Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) - USD ($) | 4 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets [Line Items] | ||||
Franchise agreements, minimal contractual terms (in years) | 1 year | |||
Franchise rights impairment | $ 0 | $ 15,400,000 | $ 0 | |
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 | ||
Maximum [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Other intangibles, useful life | 30 years | |||
Minimum [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Other intangibles, useful life | 5 years | |||
Nonrecurring [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Goodwill impairment | $ 0 | $ 0 | ||
Nonrecurring [Member] | Franchise Rights [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Franchise rights impairment | $ 0 | 0 | ||
Nonrecurring [Member] | Franchise Rights [Member] | Volkswagen [Member] | ||||
Goodwill and Intangible Assets [Line Items] | ||||
Franchise rights impairment | $ 0 | $ 15,400,000 |
Description of Business and S48
Description of Business and Summary of Significant Accounting Policies (Employee Savings Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
401(k) plan employer matching contribution | $ 6.8 | $ 6.8 | $ 5.9 |
401(k) plan matching contribution graded vesting period | 3 years | ||
Balances due to participants | $ 68.2 | 64.6 | |
Other Postretirement Benefit Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Matching contributions to employee participants | $ 0.7 | $ 0.6 | $ 0.6 |
Deferred compensation arrangement with individual matching contribution annual vesting years two and three | 33.00% | ||
Deferred compensation arrangement with individual matching contribution annual vesting portion, year one | 33.00% | ||
Employer contributions vesting periods (in years) | 3 years |
Description of Business and S49
Description of Business and Summary of Significant Accounting Policies (Revenue Recognition, Advertising) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Advertising [Abstract] | ||||
Advertising expense, net | $ 196.7 | $ 188.5 | $ 164.9 | |
Manufacturer advertising reimbursements | 58.5 | 56.4 | 47.1 | |
Chargeback Reserves [Member] | ||||
Revenue Recognition [Abstract] | ||||
Chargeback liabilities | $ 116.8 | $ 97.3 | $ 84.9 | $ 67.6 |
Receivables, Net (Components of
Receivables, Net (Components of Receivables, Net of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Trade receivables | $ 147.6 | $ 133.6 |
Manufacturer receivables | 234.9 | 221.4 |
Other | 48.7 | 38 |
Trade, manufacturer and other receivables, gross | 431.2 | 393 |
Less: Allowances | (5.8) | (4.5) |
Trade, manufacturer and other receivables, net | 425.4 | 388.5 |
Contracts-in-transit and vehicle receivables | 595.9 | 508 |
Income tax receivable (See Note 11) | 11.6 | 11.7 |
Receivables, net | $ 1,032.9 | $ 908.2 |
Inventory and Vehicle Floorpl51
Inventory and Vehicle Floorplan Payable (Components of Inventory) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Inventory [Line Items] | ||
Inventory | $ 3,520.1 | $ 3,612 |
New Vehicle [Member] | ||
Inventory [Line Items] | ||
Inventory | 2,761.5 | 2,888.1 |
Used Vehicle [Member] | ||
Inventory [Line Items] | ||
Inventory | 559.1 | 539.7 |
Parts and Service [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 199.5 | $ 184.2 |
Inventory and Vehicle Floorpl52
Inventory and Vehicle Floorplan Payable (Components of Vehicle Floorplan Payable) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | $ 3,849.2 | $ 3,727.1 |
Trade [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | 2,308.8 | 2,565.8 |
Non-Trade [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | $ 1,540.4 | $ 1,161.3 |
Inventory and Vehicle Floorpl53
Inventory and Vehicle Floorplan Payable (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Floorplan Payable [Line Items] | ||
Vehicle floorplan facilities, amount outstanding | $ 3,849.2 | $ 3,727.1 |
Used vehicle floorplan facilities, current borrowing capacity | 0.3 | |
Used vehicle floorplan facilities, remaining borrowing capacity | 52.2 | |
Used Vehicle Floorplan Facilities [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan facilities, amount outstanding | 377.8 | |
Vehicle floorplan facilities, maximum borrowing capacity | $ 430 | |
Vehicle floorplan facilities, average LIBOR-based interest rates | 2.10% | 1.70% |
New Vehicle Floorplan Facilities [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan facilities, amount outstanding | $ 3,500 | |
Vehicle floorplan facilities, maximum borrowing capacity | $ 4,700 | |
Vehicle floorplan facilities, average LIBOR-based interest rates | 2.00% | 1.80% |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 3,936.4 | $ 3,677.2 | |
Less: accumulated depreciation and amortization | (1,093.2) | (1,009.8) | |
Property and equipment, net | 2,843.2 | 2,667.4 | |
Interest costs capitalized | 0.5 | 0.9 | $ 1.2 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,267.4 | 1,178.4 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,009.6 | 1,856.6 | |
Furniture, fixtures, and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 659.4 | $ 642.2 |
Goodwill and Intangible Asset55
Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | [1] | $ 1,511.3 | $ 1,394.5 | $ 1,314.7 |
Franchise rights - indefinite-lived | 589.4 | 432.4 | ||
Other intangible assets | 16.3 | 14.3 | ||
Intangible assets, gross | 605.7 | 446.7 | ||
Less: accumulated amortization | (7.5) | (6.8) | ||
Intangible assets, net | $ 598.2 | $ 439.9 | ||
[1] | Net of accumulated impairment losses of $1.47 billion associated with our single reporting unit (prior to September 30, 2008, our reporting unit structure was comprised of a single reporting unit) and $140.0 million associated with our Domestic reporting unit, both of which were recorded during the year ended December 31, 2008. |
Goodwill and Intangible Asset56
Goodwill and Intangible Assets, Net (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | [1] | $ 1,394.5 | $ 1,314.7 | |
Acquisitions and other adjustments | 116.8 | 79.8 | ||
Goodwill, ending balance | [1] | 1,511.3 | 1,394.5 | |
Accumulated impairment losses | 1,470 | 1,470 | $ 1,470 | |
Reporting Unit, Domestic [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | [1] | 203.1 | 175.1 | |
Acquisitions and other adjustments | 49 | 28 | ||
Goodwill, ending balance | [1] | 252.1 | 203.1 | |
Accumulated impairment losses | 140 | 140 | $ 140 | |
Reporting Unit, Import [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | [1] | 570.9 | 551.6 | |
Acquisitions and other adjustments | (12.7) | 19.3 | ||
Goodwill, ending balance | [1] | 558.2 | 570.9 | |
Reporting Unit, Premium Luxury [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | [1] | 620.5 | 588 | |
Acquisitions and other adjustments | 76.9 | 32.5 | ||
Goodwill, ending balance | [1] | 697.4 | 620.5 | |
Goodwill Corporate and Other [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | [1] | 0 | 0 | |
Acquisitions and other adjustments | 3.6 | 0 | ||
Goodwill, ending balance | [1] | $ 3.6 | $ 0 | |
[1] | Net of accumulated impairment losses of $1.47 billion associated with our single reporting unit (prior to September 30, 2008, our reporting unit structure was comprised of a single reporting unit) and $140.0 million associated with our Domestic reporting unit, both of which were recorded during the year ended December 31, 2008. |
Goodwill and Intangible Asset57
Goodwill and Intangible Assets, Net (Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | $ 589.4 | $ 432.4 |
AN Reportable Segment, Domestic [Member] | ||
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | 198 | |
AN Reportable Segment, Import [Member] | ||
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | 110.4 | |
AN Reportable Segment, Premium Luxury [Member] | ||
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | $ 281 |
Self-Insurance (Details)
Self-Insurance (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Insurance [Line Items] | ||
Self-insurance reserves - current portion | $ 566.8 | $ 529.2 |
Self-insurance reserves - long-term portion | 217.9 | 207.6 |
Self-insurance reserves [Member] | ||
Insurance [Line Items] | ||
Self-insurance reserves - current portion | 27.2 | 27.2 |
Self-insurance reserves - long-term portion | 48.7 | 47.6 |
Total self-insurance liabilities | $ 75.9 | $ 74.8 |
Long-Term Debt and Commercial59
Long-Term Debt and Commercial Paper (Long-Term Debt) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Debt Instruments [Abstract] | |||
Long-term debt | $ 1,789,400,000 | $ 1,770,700,000 | |
Less: unamortized debt discounts and debt issuance costs | (10,800,000) | (13,700,000) | |
Less: current maturities | (167,500,000) | (11,700,000) | |
Long-term debt, net of current maturities | 1,611,100,000 | 1,745,300,000 | |
Senior Notes at Six Point Seven Five Percent due 2018 [Member] | Senior Notes [Member] | |||
Debt Instruments [Abstract] | |||
Senior notes | $ 400,000,000 | 400,000,000 | |
Percentage interest on debt instrument | 6.75% | ||
Senior Notes at Five Point Five Percent Due 2020 [Member] | Senior Notes [Member] | |||
Debt Instruments [Abstract] | |||
Senior notes | $ 350,000,000 | 350,000,000 | |
Percentage interest on debt instrument | 5.50% | ||
Senior Notes at Three Point Three Five Percent Due 2021 [Member] | Senior Notes [Member] | |||
Debt Instruments [Abstract] | |||
Senior notes | $ 300,000,000 | 300,000,000 | |
Percentage interest on debt instrument | 3.35% | ||
Senior Notes at Four Point Five Percent Due 2025 [Member] | Senior Notes [Member] | |||
Debt Instruments [Abstract] | |||
Senior notes | $ 450,000,000 | 450,000,000 | |
Percentage interest on debt instrument | 4.50% | ||
Revolving Credit Facility Due 2019 [Member] | |||
Debt Instruments [Abstract] | |||
Revolving credit facility | $ 0 | 0 | |
Mortgage Facility [Member] | |||
Debt Instruments [Abstract] | |||
Mortgage facility | [1] | 153,200,000 | 175,700,000 |
Mortgage Facility [Member] | Secured Debt [Member] | |||
Debt Instruments [Abstract] | |||
Monthly principal and interest payments on mortgage facility | 1,600,000 | ||
Balloon payment for mortgage | 143,900,000 | ||
Capital Leases and Other Debt [Member] | |||
Debt Instruments [Abstract] | |||
Capital leases and other debt | $ 136,200,000 | $ 95,000,000 | |
[1] | The mortgage facility requires monthly principal and interest payments of $1.6 million based on a fixed amortization schedule with a balloon payment of $143.9 million due November 2017. |
Long-Term Debt and Commercial60
Long-Term Debt and Commercial Paper (Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Maturities of Long-term Debt [Abstract] | ||
2,017 | $ 167.5 | |
2,018 | 411.4 | |
2,019 | 43 | |
2,020 | 353.5 | |
2,021 | 303.4 | |
Thereafter | 510.6 | |
Long-term debt | $ 1,789.4 | $ 1,770.7 |
Long-Term Debt and Commercial61
Long-Term Debt and Commercial Paper (Narrative) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Debt Instrument [Line Items] | ||||
Payments of mortgage facilities | $ 22,500,000 | $ 9,800,000 | $ 9,200,000 | |
Debt Issuance Costs, Net | 10,100,000 | |||
Commercial Paper Maximum Aggregate Amount | $ 1,000,000,000 | 1,000,000,000 | ||
Letters of credit, amount outstanding | 44,100,000 | 44,100,000 | ||
Commercial paper | $ 942,000,000 | $ 942,000,000 | 599,500,000 | |
Credit Agreement Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Impact on credit spread from increase in leverage ratio | 0.125% | 0.125% | ||
Revolving Credit Facility Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Dec. 3, 2019 | |||
Additional borrowing capacity under accordion feature of revolving credit facility | $ 500,000,000 | $ 500,000,000 | ||
Maximum borrowing capacity under revolving credit facility | 1,800,000,000 | 1,800,000,000 | ||
Revolving credit facility, amount outstanding | 0 | 0 | 0 | |
Revolving credit facilities letter of credit sublimit | 200,000,000 | 200,000,000 | ||
Additional borrowing capacity under revolving credit facility | 1,800,000,000 | 1,800,000,000 | ||
Borrowing capacity limited under the maximum consolidated leverage ratio | $ 1,100,000,000 | $ 1,100,000,000 | ||
Leverage ratio, minimum threshold, current credit spread | 2 | 2 | ||
Leverage ratio, maximum threshold, current credit spread | 3.25 | 3.25 | ||
Leverage ratio, minimum threshold, increase in credit spread | 3.25 | 3.25 | ||
Senior Notes [Member] | Senior Notes at Six Point Seven Five Percent due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 400,000,000 | $ 400,000,000 | 400,000,000 | |
Percentage interest on debt instrument | 6.75% | 6.75% | ||
Debt instrument, maturity date | Apr. 15, 2018 | |||
Senior Notes [Member] | Senior Notes at Five Point Five Percent Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 350,000,000 | $ 350,000,000 | 350,000,000 | |
Percentage interest on debt instrument | 5.50% | 5.50% | ||
Debt instrument, maturity date | Feb. 1, 2020 | |||
Senior Notes [Member] | Senior Notes at Three Point Three Five Percent Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 300,000,000 | $ 300,000,000 | 300,000,000 | |
Percentage interest on debt instrument | 3.35% | 3.35% | ||
Debt instrument, maturity date | Jan. 15, 2021 | |||
Senior Notes [Member] | Senior Notes at Four Point Five Percent Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 450,000,000 | $ 450,000,000 | $ 450,000,000 | |
Percentage interest on debt instrument | 4.50% | 4.50% | ||
Debt instrument, maturity date | Oct. 1, 2025 | |||
Secured Debt [Member] | Mortgage Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Nov. 30, 2017 | |||
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% | |||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates | 1.25% | |||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates | 1.625% | |||
Base Rate [Member] | Minimum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates | 0.25% | |||
Base Rate [Member] | Maximum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2019 [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates | 0.625% | |||
Commercial Paper [Member] | ||||
Debt Instrument [Line Items] | ||||
Short-term Debt, Weighted Average Interest Rate | 1.26% | 1.26% | ||
Commercial Paper [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Term | 397 days | |||
Commercial Paper [Member] | Weighted Average [Member] | ||||
Debt Instrument [Line Items] | ||||
Debt Instrument, Term | 24 days | |||
Domestic Stores Divested [Member] | Secured Debt [Member] | Mortgage Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Payments of mortgage facilities | $ 12,100,000 | |||
Mortgage facility, make-whole payment | $ 500,000 |
Long-Term Debt and Commercial62
Long-Term Debt and Commercial Paper (Other Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Mortgage Facility [Member] | |||
Debt Instrument [Line Items] | |||
Mortgage facility | [1] | $ 153.2 | $ 175.7 |
Capital Leases and Other Debt [Member] | |||
Debt Instrument [Line Items] | |||
Capital leases and other debt | $ 136.2 | $ 95 | |
Secured Debt [Member] | Mortgage Facility [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 | $ 1.6 | ||
Balloon payment for mortgage | $ 143.9 | ||
[1] | The mortgage facility requires monthly principal and interest payments of $1.6 million based on a fixed amortization schedule with a balloon payment of $143.9 million due November 2017. |
Commitments and Contingencies63
Commitments and Contingencies (Lease Commitments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Operating and Capital Leased Assets [Line Items] [Line Items] | ||||
Expenses under real property, equipment, and sofware leases | $ 52.8 | $ 51.4 | $ 49 | |
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
Noncancelable Lease Commitments, Operating, 2017 | [1],[2] | 45.6 | ||
Noncancelable Lease Commitments, Operating, 2018 | [1],[2] | 42.7 | ||
Noncancelable Lease Commitments, Operating, 2019 | [1],[2] | 39.2 | ||
Noncancelable Lease Commitments, Operating, 2020 | [1],[2] | 37.8 | ||
Noncancelable Lease Commitments, Operating, 2021 | [1],[2] | 31.2 | ||
Noncancelable Lease Commitments, Operating, Thereafter | [1],[2] | 236.8 | ||
Noncancelable Lease Commitments, Operating, Total minimum payments | [1],[2] | 433.3 | ||
Other operating expenses excluded from future minimum lease obligations | 24 | |||
Minimum sublease income | 1.1 | |||
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
Noncancelable Lease Commitments, Capital, 2017 | [1] | 20 | ||
Noncancelable Lease Commitments, Capital, 2018 | [1] | 16.2 | ||
Noncancelable Lease Commitments, Capital, 2019 | [1] | 32.4 | ||
Noncancelable Lease Commitments, Capital, 2020 | [1] | 7 | ||
Noncancelable Lease Commitments, Capital, 2021 | [1] | 6.7 | ||
Noncancelable Lease Commitments, Capital, Thereafter | [1] | 82.5 | ||
Noncancelable Lease Commitments, Capital, Total minimum payments | [1] | 164.8 | ||
Noncancelable Lease Commitments, Capital, Amounts representing interest | [1] | (46.7) | ||
Noncancelable Lease Commitments, Capital, Total | [1] | $ 118.1 | ||
Minimum [Member] | ||||
Operating and Capital Leased Assets [Line Items] [Line Items] | ||||
Operating leases, term of contract | 1 year | |||
Maximum [Member] | ||||
Operating and Capital Leased Assets [Line Items] [Line Items] | ||||
Operating leases, term of contract | 25 years | |||
[1] | Amounts for capital and operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. In 2016, these charges totaled approximately $24 million. | |||
[2] | Future minimum operating lease payments do not reflect future minimum sublease income of $1.1 million. Additionally, operating leases that are on a month-to-month basis are not included. |
Commitments and Contingencies64
Commitments and Contingencies (Other Matters) (Details) $ in Millions | Dec. 31, 2016USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure | $ 24 |
Total surety bonds, letters of credit, and cash deposits | 102.7 |
Letters of credit, amount outstanding | $ 44.1 |
Shareholders' Equity (Share Rep
Shareholders' Equity (Share Repurchase) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Class of Stock [Line Items] | ||||
Aggregate purchase price | $ 499 | $ 237.3 | $ 487.7 | |
Stock Repurchase Program Board Authorized Repurchases [Member] | ||||
Class of Stock [Line Items] | ||||
Shares repurchased (in shares) | 10.5 | 3.9 | 9.4 | |
Aggregate purchase price | $ 497 | $ 235.1 | $ 485.1 | |
Average purchase price per share (in dollars per share) | $ 47.30 | $ 60.49 | $ 51.59 | |
Remaining amount available for share repurchase | $ 298.6 | |||
Treasury Shares Retirement [Member] | ||||
Class of Stock [Line Items] | ||||
Treasury Stock, Shares, Retired | 43 |
Shareholders' Equity (Treasury
Shareholders' Equity (Treasury and Preferred Stock) (Details) - $ / shares | Dec. 31, 2016 | Dec. 31, 2015 |
Stockholders' Equity Note [Abstract] | ||
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, par value | $ 0.01 | $ 0.01 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 |
Shareholders' Equity (Stock Opt
Shareholders' Equity (Stock Options Exercised and Restricted Stock Grants) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Stockholders' Equity Note [Abstract] | |||
Shares issued for stock option exercises (in shares) | 300,000 | 1,300,000 | 1,700,000 |
Proceeds from the exercise of stock options | $ 8.4 | $ 30 | $ 35.1 |
Average exercise price per share (in dollars per share) | $ 31.21 | $ 23.33 | $ 20.50 |
Restricted stock, shares issued | 143,424 | 159,442 | 154,540 |
Shares surrendered to AutoNation to satisfy tax witholding obligations in connection with the vesting of restricted stock | 38,906 | 36,712 | 46,752 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Jan. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 1 year 8 months 5 days | |
Director [Member] | Non-Employee Director Equity Plan 2014 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 1,000,000 | |
Maximum aggregate grant date fair market value of awards per director for each calendar year | $ 750,000 | |
Employee [Member] | 2008 Equity and Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 12,000,000 | |
Employee [Member] | 2008 Equity and Incentive Plan | Grant Awards, Other than Options, or Stock Appreciation Rights [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 2,000,000 | |
Subsequent Event [Member] | Director [Member] | Non-Employee Director Equity Plan 2014 [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 600,000 | |
Subsequent Event [Member] | Employee [Member] | Equity and Incentive Plan, 2017 [Member] | Stock Options [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of shares authorized | 5,500,000 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 31, 2017 | Mar. 01, 2016 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Expected dividend rate (percentage) | 0.00% | 0.00% | 0.00% | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Exercised, shares | (300,000) | (1,300,000) | (1,700,000) | |||
Exercised, weighted-average exercise price (in dollars per share) | $ 31.21 | $ 23.33 | $ 20.50 | |||
Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Exercise price of options to purchase common stock granted | $ 52.53 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options outstanding, beginning balance (in shares) | 4,600,000 | |||||
Options outstanding, weighted-average exercise price, beginning balance (in dollars per share) | $ 45.07 | |||||
Granted, shares | [1] | 900,000 | ||||
Granted, weighted-average exercise price (in dollars per share) | [1] | $ 52.53 | ||||
Exercised, shares | (300,000) | |||||
Exercised, weighted-average exercise price (in dollars per share) | $ 31.21 | |||||
Forfeited, shares | 0 | |||||
Forfeited, weighted-average exercise price (in dollars per share) | $ 0 | |||||
Expired, shares | 0 | |||||
Expired, weighted-average exercise price (in dollars per share) | $ 0 | |||||
Options outstanding, beginning balance (in shares) | 5,200,000 | 4,600,000 | ||||
Options outstanding, weighted-average exercise price, ending balance (in dollars per share) | $ 46.99 | $ 45.07 | ||||
Options outstanding, weighted-average remaining contractual term (years) | 6 years 6 months 15 days | |||||
Options outstanding, aggregate intrinsic value | $ 31.8 | |||||
Options exercisable (in shares) | 2,900,000 | |||||
Options exercisable, weighted-average exercise price (in dollars per share) | $ 40.33 | |||||
Options exercisable, weighted-average remaining contractual term (years) | 5 years 3 months 7 days | |||||
Options exercisable, aggregate intrinsic value | $ 31.4 | |||||
Options exercisable and expected to vest thereafter (in shares) | 5,200,000 | |||||
Options exercisable and expected to vest thereafter, weighted-average exercise price (in dollars per share) | $ 46.92 | |||||
Options exercisable and expected to vest thereafter, weighted-average remaining contractual term (years) | 6 years 6 months 11 days | |||||
Options exercisable and expected to vest thereafter, aggregate intrinsic value | $ 31.8 | |||||
Options available for future grants (in shares) | [2] | 3,300,000 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Weighted average grant-date fair value of stock options granted (in dollars per share) | $ 17.96 | $ 19.38 | $ 20.56 | |||
Total intrinsic value of stock options exercised | $ 5.3 | $ 51.9 | $ 56.2 | |||
Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Granted, shares | [3] | 143,424 | ||||
Minimum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Risk-free interest rate (percentage) | 1.16% | 0.76% | 1.11% | |||
Expected term (in years) | 4 years | 2 years | 4 years | |||
Expected volatility rate (percentage) | 29.00% | 24.00% | 25.00% | |||
Maximum [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||||
Risk-free interest rate (percentage) | 1.55% | 1.86% | 2.04% | |||
Expected term (in years) | 7 years | 7 years | 7 years | |||
Expected volatility rate (percentage) | 31.00% | 34.00% | 36.00% | |||
Employee [Member] | 2008 Equity and Incentive Plan | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 12,000,000 | |||||
Employee [Member] | 2008 Equity and Incentive Plan | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options available for future grants (in shares) | 2,500,000 | |||||
Director [Member] | Non-Employee Director Equity Plan 2014 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 1,000,000 | |||||
Director [Member] | Non-Employee Director Equity Plan 2014 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options available for future grants (in shares) | 900,000 | |||||
Subsequent Event [Member] | Employee [Member] | 2008 Equity and Incentive Plan | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||||
Options available for future grants (in shares) | 0 | |||||
Subsequent Event [Member] | Employee [Member] | Equity and Incentive Plan, 2017 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 5,500,000 | |||||
Subsequent Event [Member] | Director [Member] | Non-Employee Director Equity Plan 2014 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 600,000 | |||||
Subsequent Event [Member] | Director [Member] | Non-Employee Director Equity Plan 2014 [Member] | Stock Options [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Reduction in Shares Available Issuance | 400,000 | |||||
AwardsGranted2016 [Member] | Equity Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period (in years) | 10 years | |||||
Vesting period (in years) | 4 years | |||||
AwardsGranted2016 [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 4 years | |||||
Awards Granted 2015 and 2014 [Member] | Equity Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Expiration period (in years) | 10 years | |||||
Vesting period (in years) | 4 years | |||||
Awards Granted 2015 and 2014 [Member] | Restricted Stock [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 4 years | |||||
[1] | The options granted during 2016 are related to our annual employee stock option award grant on March 1, 2016 | |||||
[2] | Includes 2.5 million shares available under the 2008 Plan and 0.9 million shares available under the 2014 Director Plan. As noted above, the number of shares available under the 2014 Director Plan was reduced by 0.4 million shares in January 2017. If our stockholders approve the 2017 Plan, under which 5.5 million shares would be available for issuance, then no additional awards will be granted under the 2008 Plan, and the 2.5 million shares available under the 2008 Plan will no longer be available for issuance. | |||||
[3] | The restricted stock awards granted during 2016 are primarily related to our employee annual restricted stock award grant in March 2016. |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock) (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Total fair value of restricted stock awards vested | $ 6.4 | $ 8.8 | $ 8.1 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, shares, beginning balance | 284,284 | |||
Nonvested, weighted-average grant date fair value, beginning balance (in dollars per share) | $ 53.11 | |||
Granted, shares | [1] | 143,424 | ||
Granted, weighted-average grant date fair value (in dollars per share) | [1] | $ 52.23 | $ 62.54 | $ 52.87 |
Vested, shares | (128,640) | |||
Vested, weighted-average grant date fair value (in dollars per share) | $ 49.26 | |||
Forfeited, shares | (32,162) | |||
Forfeited, weighted-average grant date fair value (in dollars per share) | $ 55.23 | |||
Nonvested, shares, ending balance | 266,906 | 284,284 | ||
Nonvested, weighted-average grant date fair value, ending balance (in dollars per share) | $ 54.23 | $ 53.11 | ||
Awards Granted 2015 and 2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
AwardsGranted2016 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
[1] | The restricted stock awards granted during 2016 are primarily related to our employee annual restricted stock award grant in March 2016. |
Stock-Based Compensation (Res71
Stock-Based Compensation (Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jan. 04, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted-average grant date fair value of RSU's granted (in dollars per share) | $ 58.69 | $ 60.04 | $ 53.57 | |
Total fair value of RSU's granted | $ 2.3 | $ 2.7 | $ 2.1 | |
Director [Member] | Non-Employee Director Equity Plan 2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock units granted to each non-employee director | 4,259 |
Stock-Based Compensation (Compe
Stock-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 25.1 | $ 24 | $ 26.3 |
Tax benefit related to stock-based compensation expense | 9.6 | 9.2 | 10 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 22.7 | ||
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 1 year 8 months 5 days | ||
Realized tax benefits related to stock options exercised and vesting of restricted stock | $ 4.8 | 23.3 | 24.1 |
Stock Options [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 16.2 | 14.8 | 18.4 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | 14 | ||
Restricted Stock [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 6.6 | 6.5 | 5.8 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | 8.7 | ||
Restricted Stock Units (RSUs) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 2.3 | $ 2.7 | $ 2.1 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current: | |||
Federal | $ 234.9 | $ 235 | $ 220.9 |
State | 31.4 | 34.1 | 32.2 |
Federal and state deferred | 3.7 | 10.3 | 9.5 |
Change in valuation allowance, net | 0.3 | 0.1 | 0 |
Adjustments and settlements | 0.3 | (0.5) | (0.1) |
Income tax provision | 270.6 | 279 | 262.5 |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax provision at statutory rate | 245.8 | 253 | 238.8 |
Non-deductible expenses (income), net | 4.6 | 3.5 | 1.3 |
State income taxes, net of federal benefit | 21.7 | 23.6 | 23.2 |
Income tax provision, excluding other reconciling items | 272.1 | 280.1 | 263.3 |
Change in valuation allowance, net | 0.3 | 0.1 | 0 |
Adjustments and settlements | 0.3 | (0.5) | (0.1) |
Other, net | (2.1) | (0.7) | (0.7) |
Income tax provision | $ 270.6 | $ 279 | $ 262.5 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income tax provision at statutory rate, % | 35.00% | 35.00% | 35.00% |
Non-deductible expenses (income), net, % | 0.70% | 0.50% | 0.20% |
State income taxes, net of federal benefit, % | 3.10% | 3.30% | 3.40% |
Income tax provision, excluding other reconciling items, % | 38.80% | 38.80% | 38.60% |
Change in valuation allowance, net, % | 0.00% | 0.00% | 0.00% |
Adjustments and settlements, % | 0.00% | (0.10%) | 0.00% |
Other, net, % | (0.30%) | (0.10%) | (0.10%) |
Income tax provision, % | 38.50% | 38.60% | 38.50% |
Deferred income tax assets: | |||
Inventory | $ 36.8 | $ 35.1 | |
Receivable allowances | 3.3 | 2.9 | |
Warranty, chargeback and self - insurance liabilities | 71.2 | 63.5 | |
Other accrued liabilities | 33.1 | 32.6 | |
Deferred compensation | 31.8 | 28.5 | |
Stock-based compensation | 25.7 | 24.3 | |
Loss carryforwards—federal and state | 5.4 | 13.3 | |
Other, net | 17.1 | 6.8 | |
Total deferred income tax assets | 224.4 | 207 | |
Valuation allowance | (2.5) | (2.4) | |
Deferred income tax assets, net of valuation allowance | 221.9 | 204.6 | |
Deferred income tax liabilities: | |||
Long-lived assets (intangibles assets and property) | (293.3) | (263.8) | |
Other, net | (20.1) | (19.4) | |
Total deferred income tax liabilities | (313.4) | (283.2) | |
Net deferred income tax liabilities | (91.5) | (78.6) | |
Deferred Tax Assets, Net, Classification [Abstract] | |||
Deferred Tax Liabilities, Net, Noncurrent | 91.5 | 78.6 | |
Income Taxes Receivable, Current | 11.6 | 11.7 | |
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | |||
Gross domestic state net operating and capital loss carryforwards | 80.8 | ||
State tax credits | 4.1 | ||
Valuation allowance related to loss carryforwards | 2.5 | $ 2.4 | |
Gross domestic state net operating loss carryforwards and capital loss carryforwards | $ 6 |
Income Taxes (Contingencies) (D
Income Taxes (Contingencies) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | $ 5.6 | $ 4.9 | $ 4.8 |
Additions based on tax positions related to the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 0.8 | 0.7 | 0.9 |
Reductions for tax positions of prior years | (0.4) | 0 | (0.1) |
Reductions for expirations of statute of limitations | (0.2) | 0 | (0.4) |
Settlements | 0 | 0 | (0.3) |
Balance at December 31 | 5.8 | 5.6 | 4.9 |
Unrecognized tax benefits, accumulated interest and penalties | 6.1 | 5.5 | 5.3 |
Deferred tax assets related to unrecognized tax benefits | 4.2 | 4 | 3.6 |
Net unrecognized tax benefits, associated interest, penalties and deferred tax asset that if resolved would impact effective tax rate | 7.7 | 7.1 | 6.6 |
Recognized interest and penalties | $ 0.4 | $ 0.4 | $ 0.3 |
Earnings (Loss) Per Share (Weig
Earnings (Loss) Per Share (Weighted Average Common and Common Equivalent Shares) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Net income from continuing operations | $ 431.7 | $ 443.7 | $ 419.8 |
Loss from discontinued operations, net of income taxes | (1.2) | (1.1) | (1.1) |
NET INCOME | $ 430.5 | $ 442.6 | $ 418.7 |
Weighted average common shares outstanding used in calculating basic EPS (in shares) | 103.1 | 112.7 | 117.3 |
Effect of dilutive stock options | 0.7 | 1.2 | 1.6 |
Weighted average common shares outstanding used in calculating diluted EPS (in shares) | 103.8 | 113.9 | 118.9 |
Basic EPS amounts | |||
Continuing operations (in dollars per share) | $ 4.19 | $ 3.94 | $ 3.58 |
Discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.01) |
Net income (in dollars per share) | 4.18 | 3.93 | 3.57 |
Diluted EPS amounts: | |||
Continuing operations (in dollars per share) | 4.16 | 3.90 | 3.53 |
Discontinued operations (in dollars per share) | (0.01) | (0.01) | (0.01) |
Net income (in dollars per share) | $ 4.15 | $ 3.89 | $ 3.52 |
Earnings (Loss) Per Share (Anti
Earnings (Loss) Per Share (Anti-Dilutive Options Excluded from the Computation of Diluted Earnings Per Share) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive options excluded from the computation of diluted earnings per share (in shares) | 3 | 0.7 | 0.6 |
Divestitures (Details)
Divestitures (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)stores | Dec. 31, 2015USD ($)stores | Dec. 31, 2014USD ($)stores | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on disposal | $ 61.8 | ||
Domestic Stores Divested [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of businesses divested | stores | 5 | ||
Import Stores Divested [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of businesses divested | stores | 9 | 3 | 2 |
Gain on disposal | $ 7.4 | $ 4.4 | |
Customer Lead Distribution Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on disposal | $ 8.4 |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016USD ($)stores | Dec. 31, 2015stores | Dec. 31, 2014stores | |
Business Acquisition [Line Items] | |||
Goodwill | $ 140.4 | ||
Number of stores purchased | stores | 20 | 22 | 5 |
Actual Revenue included in consolidated results | $ 790.5 | ||
Actual net income included in consolidated results | 21.7 | ||
Reporting Unit, Domestic [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 57.9 | ||
Reporting Unit, Import [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 2 | ||
Reporting Unit, Premium Luxury [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | 76.9 | ||
Goodwill Corporate and Other [Member] | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 3.6 |
Acquisitions (Purchase Price Al
Acquisitions (Purchase Price Allocation) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Business Combination Segment Allocation [Line Items] | |||
Supplemental pro forma revenue | $ 21,945.6 | $ 22,169.9 | |
Supplemental pro forma net income from continuing operations | 434.1 | 469.4 | |
Receivables, net | 19.9 | ||
Inventory | 272.4 | ||
Property and equipment | 130.4 | ||
Goodwill | 140.4 | ||
Franchise rights - indefinite-lived | 169.2 | ||
Other assets | 9.4 | ||
Accounts payable | (9) | ||
Vehicle floorplan payable - non-trade | (264.4) | ||
Deferred income taxes | (7.5) | ||
Other liabilities | (13) | ||
Aggregate purchase price | 447.8 | ||
Capital leases and other obligations | (37.4) | ||
Cash used in business acquisitions, net of cash acquired | 410.4 | $ 321.5 | $ 205.2 |
Reporting Unit, Domestic [Member] | |||
Business Combination Segment Allocation [Line Items] | |||
Goodwill | 57.9 | ||
Reporting Unit, Import [Member] | |||
Business Combination Segment Allocation [Line Items] | |||
Goodwill | 2 | ||
Reporting Unit, Premium Luxury [Member] | |||
Business Combination Segment Allocation [Line Items] | |||
Goodwill | 76.9 | ||
Goodwill Corporate and Other [Member] | |||
Business Combination Segment Allocation [Line Items] | |||
Goodwill | $ 3.6 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Supplemental Cash Flow Information [Abstract] | |||
Business Acquisitions Capital Lease and Deferred Purchase Price | $ 47.2 | ||
Non-cash investing and financing activities primarily related to capital leases | $ 27.3 | $ 11.6 | |
Accrued purchases of property and equipment | 29.1 | 25.3 | 16.3 |
Interest payments, net of amounts capitalized and including interest on vehicle inventory financing | 183.9 | 135.3 | 136.4 |
Income tax payments, net of income tax refunds | $ 265.5 | $ 278.8 | $ 225 |
Financial Instruments and Fai81
Financial Instruments and Fair Value Measurements (Summary of Carrying Values and Fair Values of Fixed Rate Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2016 | Dec. 31, 2015 |
Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed rate debt | $ 1,778.6 | $ 1,757 |
Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed rate debt | $ 1,862.2 | $ 1,858.6 |
Financial Instruments And Fai82
Financial Instruments And Fair Value Measurements (Nonfinancial Assets Measured on a Nonrecurring Basis) (Details) - USD ($) | 4 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Franchise rights | $ 589,400,000 | $ 432,400,000 | ||
Gain/(Loss) on franchise rights | 0 | (15,400,000) | $ 0 | |
Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain/(Loss) on assets held for sale | (12,800,000) | (3,800,000) | ||
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Franchise rights | 0 | 3,100,000 | ||
Long-lived assets held for sale | 32,100,000 | 22,900,000 | ||
Continuing Operations [Member] | Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain/(Loss) on assets held and used | (1,900,000) | (3,100,000) | ||
Gain/(Loss) on assets held for sale | (12,100,000) | (3,000,000) | ||
Continuing Operations [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-lived assets held and used | 5,900,000 | 24,900,000 | ||
Long-lived assets held for sale | 19,400,000 | 17,600,000 | ||
Discontinued Operations, Held-for-sale [Member] | Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain/(Loss) on assets held for sale | (700,000) | (800,000) | ||
Discontinued Operations, Held-for-sale [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-lived assets held for sale | 12,700,000 | $ 5,300,000 | ||
Franchise Rights [Member] | Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain/(Loss) on franchise rights | $ 0 | $ 0 |
Financial Instruments and Fai83
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) | 4 Months Ended | 12 Months Ended | ||
Apr. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Franchise rights impairment | $ 0 | $ 15,400,000 | $ 0 | |
Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Goodwill impairment | 0 | 0 | ||
Impairment of long-lived assets for sale | $ 12,800,000 | $ 3,800,000 | ||
Goodwill [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Date of annual goodwill and indefinite lived intangible assets impairment test | April 30 | April 30 | ||
Franchise Rights [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Date of annual goodwill and indefinite lived intangible assets impairment test | April 30 | April 30 | ||
Franchise Rights [Member] | Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Franchise rights impairment | $ 0 | $ 0 | ||
Franchise Rights [Member] | Nonrecurring [Member] | Volkswagen [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Franchise rights impairment | 0 | $ 15,400,000 | ||
Continuing Operations [Member] | Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of long-lived assets held and used | 1,900,000 | 3,100,000 | ||
Impairment of long-lived assets for sale | 12,100,000 | 3,000,000 | ||
Discontinued Operations, Held-for-sale [Member] | Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Impairment of long-lived assets for sale | 700,000 | 800,000 | ||
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 | 41,400,000 | 47,100,000 | ||
Reported Value Measurement [Member] | Discontinued Operations, Held-for-sale [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Long-lived assets held for sale | $ 15,700,000 | $ 22,300,000 |
Business and Credit Concentra84
Business and Credit Concentrations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Concentration Risk [Line Items] | ||
Percentage Revenue from stores located in Florida, Texas, California | 64.00% | |
Percentage of New Vehicle Sales Core Brands | 94.00% | |
Manufacturer receivables | $ 234.9 | $ 221.4 |
Chargeback Liability (Details)
Chargeback Liability (Details) - Chargeback Reserves [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Chargeback liabilities, beginning Balance | $ 97.3 | $ 84.9 | $ 67.6 |
Add: Provisions | 106.6 | 90 | 79.4 |
Deduct: Chargebacks | (87.1) | (77.6) | (62.1) |
Chargeback liabilities, ending Balance | $ 116.8 | $ 97.3 | $ 84.9 |
Segment Information (Details)
Segment Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2016USD ($)segments | Dec. 31, 2015USD ($)segments | Dec. 31, 2014USD ($)segments | ||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segments | 3 | 3 | 3 | |
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total revenues | $ 21,609 | $ 20,862 | $ 19,108.8 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Total segment income | [1] | 958.1 | 1,024.5 | 942.4 |
Corporate and other | (145.1) | (209.7) | (174.9) | |
Other interest expense | (115.5) | (90.9) | (86.7) | |
Loss on debt extinguishment | 0 | 0 | (1.6) | |
Interest income | 1.1 | 0.1 | 0.2 | |
Other income (loss), net | 3.7 | (1.3) | 2.9 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 702.3 | 722.7 | 682.3 | |
Floorplan Interest Expense [Abstract] | ||||
Floorplan interest expense | 76.5 | 58.3 | 53.3 | |
Depreciation, Depletion and Amortization [Abstract] | ||||
Depreciation and amortization | 143.4 | 127.4 | 106.9 | |
Assets [Abstract] | ||||
Assets | 10,060 | 9,548.2 | 8,395 | |
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ||||
Capital expenditures | 253.2 | 266.9 | 197.8 | |
AN Reportable Segment, Domestic [Member] | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total revenues | 7,810 | 7,069.8 | 6,359.5 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Total segment income | [1] | 311.1 | 336.9 | 285 |
Floorplan Interest Expense [Abstract] | ||||
Floorplan interest expense | 33.7 | 24.1 | 24.4 | |
Depreciation, Depletion and Amortization [Abstract] | ||||
Depreciation and amortization | 37.5 | 31 | 27.3 | |
Assets [Abstract] | ||||
Assets | 2,742.8 | 2,573.9 | 2,187.3 | |
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ||||
Capital expenditures | 62.5 | 61.4 | 61.7 | |
AN Reportable Segment, Import [Member] | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total revenues | 6,886.1 | 7,037.2 | 6,717.8 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Total segment income | [1] | 296.8 | 311.4 | 291.3 |
Floorplan Interest Expense [Abstract] | ||||
Floorplan interest expense | 17.4 | 15 | 14.5 | |
Depreciation, Depletion and Amortization [Abstract] | ||||
Depreciation and amortization | 35.4 | 32.9 | 31 | |
Assets [Abstract] | ||||
Assets | 2,065.5 | 2,145.2 | 1,997.7 | |
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ||||
Capital expenditures | 28 | 34 | 47 | |
AN Reportable Segment, Premium Luxury [Member] | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total revenues | 6,665.3 | 6,607.8 | 5,889.3 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Total segment income | [1] | 350.2 | 376.2 | 366.1 |
Floorplan Interest Expense [Abstract] | ||||
Floorplan interest expense | 22.7 | 18 | 13.1 | |
Depreciation, Depletion and Amortization [Abstract] | ||||
Depreciation and amortization | 40.7 | 35 | 28.3 | |
Assets [Abstract] | ||||
Assets | 2,603.4 | 2,554.6 | 2,051 | |
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ||||
Capital expenditures | 95.6 | 101.9 | 68.3 | |
AN Reportable Segments [Member] | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total revenues | 21,361.4 | 20,714.8 | 18,966.6 | |
Corporate and Other [Member] | ||||
Segment Reporting Information, Revenue for Reportable Segment [Abstract] | ||||
Total revenues | 247.6 | 147.2 | 142.2 | |
Floorplan Interest Expense [Abstract] | ||||
Floorplan interest expense | 2.7 | 1.2 | 1.3 | |
Depreciation, Depletion and Amortization [Abstract] | ||||
Depreciation and amortization | 29.8 | 28.5 | 20.3 | |
Segment Reporting, Other Significant Reconciling Item, Consolidated [Abstract] | ||||
Capital expenditures | 67.1 | 69.6 | 20.8 | |
Corporate and Other [Member] | Goodwill [Member] | ||||
Assets [Abstract] | ||||
Assets | 1,511.3 | 1,394.5 | 1,314.7 | |
Corporate and Other [Member] | Franchise Rights [Member] | ||||
Assets [Abstract] | ||||
Assets | 589.4 | 432.4 | 348.1 | |
Corporate and Other [Member] | Other Corporate and Other Assets [Member] | ||||
Assets [Abstract] | ||||
Assets | $ 547.6 | $ 447.6 | $ 496.2 | |
[1] | Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. |
Multiemployer Pension Plans (De
Multiemployer Pension Plans (Details) $ in Millions | 12 Months Ended | |||||
Dec. 31, 2016USD ($)storesagreements | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Jun. 30, 2012agreements | May 31, 2011agreements | ||
Multiemployer Plans [Line Items] | ||||||
Number of stores | stores | 260 | |||||
Contributions of AutoNation | [1] | $ 1.5 | $ 1.4 | $ 1.1 | ||
Automotive Industries Pension Plan [Member] | ||||||
Multiemployer Plans [Line Items] | ||||||
EIN | 941,133,245 | |||||
Multiemployer plan number | 1 | |||||
Pension protection act zone status | Red | Red | ||||
Contributions of AutoNation | [1] | $ 1.1 | $ 1 | 0.8 | ||
Surcharge imposed | Yes | |||||
Number of collective-bargaining arrangements that require contributions to the Plan | agreements | 2 | |||||
Number of collective-bargaining arrangements expired, but currently extended | agreements | 1 | 1 | ||||
Other funds [Member] | ||||||
Multiemployer Plans [Line Items] | ||||||
Contributions of AutoNation | [1] | $ 0.4 | $ 0.4 | $ 0.3 | ||
Multiemployer Plans, Pension [Member] | ||||||
Multiemployer Plans [Line Items] | ||||||
Number of stores | stores | 5 | |||||
[1] | Our stores were not listed in the Automotive Industries Pension Plan’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2015 or 2014. |