Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2018 | Feb. 20, 2019 | Jun. 29, 2018 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2018 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2,018 | ||
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 Emerging Growth Company | false | ||
Entity Small Business | false | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 90,058,836 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 2.6 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | |
CURRENT ASSETS: | |||
Cash and cash equivalents | $ 48.6 | $ 69.2 | |
Receivables, net | 976.2 | 1,111 | |
Inventory | 3,650.5 | 3,365.6 | |
Other current assets | 208.7 | 251.7 | |
Total Current Assets | 4,884 | 4,797.5 | |
PROPERTY AND EQUIPMENT, NET | 3,155.3 | 2,962.7 | |
GOODWILL | [1] | 1,513.2 | 1,515 |
OTHER INTANGIBLE ASSETS, NET | 595.4 | 586.8 | |
OTHER ASSETS | 517.2 | 409.5 | |
Total Assets | 10,665.1 | 10,271.5 | |
CURRENT LIABILITIES: | |||
Vehicle floorplan payable | 3,997.7 | 3,806.9 | |
Accounts payable | 306.2 | 309.8 | |
Commercial paper | 630 | 330 | |
Current maturities of long-term debt | 44.3 | 414.5 | |
Other current liabilities | 679.9 | 774.5 | |
Total Current Liabilities | 5,658.1 | 5,635.7 | |
LONG-TERM DEBT, NET OF CURRENT MATURITIES | 1,926.2 | 1,959.2 | |
DEFERRED INCOME TAXES | 89.8 | 71.9 | |
OTHER LIABILITIES | 275 | 235.4 | |
COMMITMENTS AND CONTINGENCIES (Note 18) | |||
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; 102,562,149 shares issued at December 31, 2018, and December 31, 2017, including shares held in treasury | 1 | 1 | |
Additional paid-in capital | 20.8 | 4 | |
Retained earnings | 3,238.3 | 2,832.2 | |
Treasury stock, at cost; 12,540,065 and 11,002,298 shares held, respectively | (544.1) | (467.9) | |
Total Shareholders' Equity | 2,716 | 2,369.3 | |
Total Liabilities and Shareholders' Equity | 10,665.1 | 10,271.5 | |
Trade [Member] | |||
CURRENT LIABILITIES: | |||
Vehicle floorplan payable | 2,388 | 2,179.1 | |
Non-Trade [Member] | |||
CURRENT LIABILITIES: | |||
Vehicle floorplan payable | $ 1,609.7 | $ 1,627.8 | |
[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 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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 | 102,562,149 | 102,562,149 |
Treasury stock, shares | 12,540,065 | 11,002,298 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Revenue: | ||||
TOTAL REVENUE | $ 21,412.8 | $ 21,534.6 | $ 21,609 | |
Cost of Sales: | ||||
TOTAL COST OF SALES (excluding depreciation shown below) | 18,015.5 | 18,175.6 | 18,295.8 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | 3,397.3 | 3,359 | 3,313.2 | |
Selling, general, and administrative expenses | 2,509.8 | 2,436.2 | 2,349.4 | |
Depreciation and amortization | 166.2 | 158.6 | 143.4 | |
Franchise rights impairment | 8.1 | 0 | 0 | |
Other income, net | (64.7) | (79.2) | (69.1) | |
OPERATING INCOME | 777.9 | 843.4 | 889.5 | |
Non-operating income (expense) items: | ||||
Floorplan interest expense | (130.4) | (97) | (76.5) | |
Other interest expense | (119.4) | (120.2) | (115.5) | |
Interest income | 1.1 | 1 | 1.1 | |
Other income, net | 0.2 | 9.3 | 3.7 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 529.4 | 636.5 | 702.3 | |
Income tax provision | 133.5 | 201.5 | 270.6 | |
NET INCOME FROM CONTINUING OPERATIONS | 395.9 | 435 | 431.7 | |
Income (loss) from discontinued operations, net of income taxes | 0.1 | (0.4) | (1.2) | |
NET INCOME | $ 396 | $ 434.6 | $ 430.5 | |
BASIC EARNINGS (LOSS) PER SHARE: | ||||
Continuing operations (in dollars per share) | [1] | $ 4.36 | $ 4.45 | $ 4.19 |
Discontinued operations (in dollars per share) | [1] | 0 | 0 | (0.01) |
Net income (in dollars per share) | [1] | $ 4.36 | $ 4.44 | $ 4.18 |
Weighted average common shares outstanding (in shares) | 90.9 | 97.8 | 103.1 | |
DILUTED EARNINGS (LOSS) PER SHARE: | ||||
Continuing operations (in dollars per share) | [1] | $ 4.34 | $ 4.43 | $ 4.16 |
Discontinued operations (in dollars per share) | [1] | 0 | 0 | (0.01) |
Net income (in dollars per share) | [1] | $ 4.34 | $ 4.43 | $ 4.15 |
Weighted average common shares outstanding (in shares) | 91.3 | 98.2 | 103.8 | |
COMMON SHARES OUTSTANDING, net of treasury stock, at period end (in shares) | 90 | 91.6 | 100.7 | |
New Vehicle [Member] | ||||
Revenue: | ||||
TOTAL REVENUE | $ 11,751.6 | $ 12,180.8 | $ 12,255.8 | |
Cost of Sales: | ||||
TOTAL COST OF SALES (excluding depreciation shown below) | 11,235.5 | 11,592.4 | 11,620 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | 516.1 | 588.4 | 635.8 | |
Used Vehicle [Member] | ||||
Revenue: | ||||
TOTAL REVENUE | 5,123.3 | 4,878.4 | 4,995.3 | |
Cost of Sales: | ||||
TOTAL COST OF SALES (excluding depreciation shown below) | 4,781.6 | 4,563.2 | 4,677.7 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | 341.7 | 315.2 | 317.6 | |
Parts and Service [Member] | ||||
Revenue: | ||||
TOTAL REVENUE | 3,447.6 | 3,398.3 | 3,321.4 | |
Cost of Sales: | ||||
TOTAL COST OF SALES (excluding depreciation shown below) | 1,892.3 | 1,907.6 | 1,886.7 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | 1,555.3 | 1,490.7 | 1,434.7 | |
Finance and Insurance, Net [Member] | ||||
Revenue: | ||||
TOTAL REVENUE | 981.4 | 939.2 | 894.6 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | 981.4 | 939.2 | 894.6 | |
Product and Service, Other [Member] | ||||
Revenue: | ||||
TOTAL REVENUE | 108.9 | 137.9 | 141.9 | |
Cost of Sales: | ||||
TOTAL COST OF SALES (excluding depreciation shown below) | 106.1 | 112.4 | 111.4 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | $ 2.8 | $ 25.5 | $ 30.5 | |
[1] | Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. |
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, 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 | (497) | (497) | |||
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 | 7 | (7.5) | 14.5 | ||
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) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 434.6 | 434.6 | |||
Repurchases of common stock | (434.9) | (434.9) | |||
Treasury stock cancellation, Shares | (18,000,000) | ||||
Treasury stock cancellation | 0 | $ (0.2) | (30.2) | (735.6) | 766 |
Stock-based compensation expense | 20.6 | 20.6 | |||
Shares awarded under stock-based compensation plans, including excess income tax benefit of $0.6 in 2016 | 38.6 | (4.8) | 43.4 | ||
Other | 0.1 | 0.2 | (0.1) | ||
BALANCE, Shares at Dec. 31, 2017 | 102,562,149 | ||||
BALANCE, Amount at Dec. 31, 2017 | 2,369.3 | $ 1 | 4 | 2,832.2 | (467.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 396 | 396 | |||
Repurchases of common stock | (100) | (100) | |||
Stock-based compensation expense | 25.5 | 25.5 | |||
Shares awarded under stock-based compensation plans, including excess income tax benefit of $0.6 in 2016 | 15.1 | (8.7) | 23.8 | ||
Cumulative effect of change in accounting principle - revenue recognition | 10.1 | 10.1 | |||
BALANCE, Shares at Dec. 31, 2018 | 102,562,149 | ||||
BALANCE, Amount at Dec. 31, 2018 | $ 2,716 | $ 1 | $ 20.8 | $ 3,238.3 | $ (544.1) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Statement of Stockholders' Equity [Abstract] | |
Shares awarded under stock-based compensation plans, excess income tax benefit | $ 0.6 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | |||
Net income | $ 396 | $ 434.6 | $ 430.5 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
(Income) loss from discontinued operations | (0.1) | 0.4 | 1.2 |
Depreciation and amortization | 166.2 | 158.6 | 143.4 |
Amortization of debt issuance costs and accretion of debt discounts | 5.4 | 5.6 | 5.4 |
Stock-based compensation expense | 25.5 | 20.6 | 25.1 |
Deferred income tax provision (benefit) | 14.5 | (19) | 3.7 |
Net gain on asset sales and dispositions | (57.6) | (95.4) | (62.6) |
Franchise rights impairment | 8.1 | 0 | 0 |
Non-cash impairment charges | 3.2 | 26.4 | 14 |
Excess tax benefit from stock-based awards | 0 | 0 | (0.6) |
Other | 0.8 | (7.3) | (10.6) |
(Increase) decrease, net of effects from business combinations and divestitures: | |||
Receivables | 133.7 | (61.6) | (99.3) |
Inventory | (319.5) | 39.3 | 259.1 |
Other assets | (107.9) | (37) | (33.6) |
Increase (decrease), net of effects from business combinations and divestitures: | |||
Vehicle floorplan payable-trade, net | 242.4 | (64.4) | (196.4) |
Accounts payable | 1.7 | 0.5 | (5.8) |
Other liabilities | (2) | 139.1 | 43.8 |
Net cash provided by continuing operations | 510.4 | 540.4 | 517.3 |
Net cash provided by (used in) discontinued operations | 0.6 | (0.3) | (1.3) |
Net cash provided by operating activities | 511 | 540.1 | 516 |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES: | |||
Purchases of property and equipment | (387) | (310.1) | (244.5) |
Property operating lease buy-outs | (13.8) | (3.3) | (5) |
Proceeds from the sale of property and equipment | 28 | 21 | 8.7 |
Proceeds from the disposal of assets held for sale | 21.1 | 38 | 4.8 |
Insurance recoveries on property and equipment | 1.1 | 1.7 | 3.1 |
Cash used in business acquisitions, net of cash acquired | (67.2) | (76.8) | (410.4) |
Cash received from business divestitures, net of cash relinquished | 173.2 | 104.6 | 150.4 |
Investment in equity security | (50) | 0 | 0 |
Other | (0.7) | (2.1) | (0.1) |
Net cash used in continuing operations | (295.3) | (227) | (493) |
Net cash used in discontinued operations | 0 | 0 | 0 |
Net cash used in investing activities | (295.3) | (227) | (493) |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Repurchases of common stock | (100) | (434.9) | (497) |
Payment of 6.75% Senior Notes due 2018 | (400) | 0 | 0 |
Proceeds from revolving credit facilities | 0 | 1,307 | 1,330 |
Payments of revolving credit facilities | 0 | (1,307) | (1,330) |
Net proceeds from (payments of) commercial paper | 300 | (612) | 342.5 |
Payment of debt issuance costs | 0 | (13.5) | 0 |
Net proceeds from (payments of) vehicle floorplan payable - non-trade | (34.2) | 130.2 | 153.8 |
Purchase of subsidiary shares | 0 | 0 | (15.2) |
Payments of mortgage facilities | 0 | (153.2) | (22.5) |
Payments of capital lease and other debt obligations | (15.8) | (11.8) | (4.2) |
Proceeds from the exercise of stock options | 17.8 | 39.7 | 8.4 |
Payments of tax withholdings for stock-based awards | (2.7) | (1.1) | (2) |
Excess tax benefit from stock-based awards | 0 | 0 | 0.6 |
Other | (2.5) | 0 | 0 |
Net cash used in continuing operations | (237.4) | (307.4) | (35.6) |
Net cash used in discontinued operations | 0 | 0 | 0 |
Net cash provided by (used in) financing activities | (237.4) | (307.4) | (35.6) |
INCREASE (DECREASE) IN CASH, CASH EQUIVALNTS, AND RESTRICTED CASH | (21.7) | 5.7 | (12.6) |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at beginning of year | 71.1 | 65.4 | 78 |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at end of year | 49.4 | 71.1 | 65.4 |
Senior Notes at Three Point Five Percent Due 2024 [Member] | |||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Proceeds from Senior Notes | 0 | 449.4 | 0 |
Senior Notes at Three Point Eight Percent Due 2027 [Member] | |||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | |||
Proceeds from Senior Notes | $ 0 | $ 299.8 | $ 0 |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , we owned and operated 326 new vehicle franchises from 239 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores sell 33 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 92% of the new vehicles that we sold in 2018 , are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, FCA US, Mercedes-Benz, Nissan, BMW, and Volkswagen (including Audi and Porsche) . As of December 31, 2018 , we also owned and operated 85 AutoNation-branded collision centers, and together with our vehicle dealerships, our AutoNation USA stores, and our automotive auctions, we owned and operated over 325 locations coast to coast. We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service” (also referred to as “Customer Care”), which includes automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products (also referred to as “Customer Financial Services”), 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 U.S. generally accepted accounting principles 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 critical accounting estimates made in the accompanying Consolidated Financial Statements include certain assumptions related to goodwill, other intangible assets, and accruals for chargebacks against revenue recognized from the sale of finance and insurance products. Other significant accounting estimates include certain assumptions related to long-lived assets, assets held for sale, accruals related to self-insurance programs, certain legal proceedings, and estimated tax liabilities. 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 net realizable value 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 or net realizable value. See Note 5 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 6 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. Such events or changes may include a significant decrease in market value, a significant change in the business climate in a particular market, a current expectation that more-likely-than-not a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, or a current-period operating or cash flow loss combined with historical losses or projected future losses. We use an estimate of the related undiscounted cash flows over the remaining life of the asset (asset group) in assessing whether an asset (asset group) has been impaired. We measure impairment losses based upon the amount by which the carrying amount of the asset (asset group) 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. We measure each long-lived asset or disposal group at the lower of its carrying amount or fair value less cost to sell and recognize a loss for any initial adjustment of the long-lived asset’s or disposal group’s carrying amount to fair value less cost to sell in the period the “held for sale” criteria are met. Such valuations include estimations of fair values and incremental direct costs to transact a sale. The fair value measurements for our long-lived assets held for sale were based on Level 3 inputs, which considered information obtained from third-party real estate valuation sources, or, in certain cases, pending agreements to sell the related assets. We recognize an impairment loss if the amount of the asset’s or disposal group’s carrying amount exceeds the asset’s or disposal group’s estimated fair value less cost to sell. If we recognize an impairment loss, the adjusted carrying amount of the asset or disposal group becomes its new cost basis. For a depreciable long-lived asset, the new cost basis will be depreciated over the remaining useful life of that asset. 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 $67.8 million at December 31, 2018 , and $169.1 million at December 31, 2017 , included in continuing operations. We had assets held for sale of $14.1 million at December 31, 2018 , and $14.4 million at December 31, 2017 , included in discontinued operations. See Note 17 of the Notes to Consolidated Financial Statements for information about our fair value measurement valuation process and impairment charges that were recorded during 2018 and 2017 . Goodwill and Other Intangible Assets, net Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so. Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from three to 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. Under generally accepted accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment as of April 30, 2018, and determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts. We elected to perform a quantitative goodwill impairment test as of April 30, 2017 , and no goodwill impairment charges resulted from the impairment test. We chose to perform quantitative franchise rights impairment tests as of April 30, 2018 , and $8.1 million of impairment charges resulted from the impairment tests. We also elected to perform quantitative franchise rights impairment tests as of April 30 , 2017 , and no impairment charges resulted from the impairment tests. See Note 7 of the Notes to Consolidated Financial Statements for more information about our goodwill and other intangible assets and Note 17 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, assets held for sale in continuing operations and discontinued operations, contract assets, and prepaid expenses. Other Assets Other assets consist of various items, including, among other items, service loaner and rental vehicle inventory, net, the cash surrender value of corporate-owned life insurance held in a Rabbi Trust for deferred compensation plan participants, an investment in an equity security, and contract assets. Other Current Liabilities Other current liabilities consist of various items payable within one year including, among other items, accruals for payroll and benefits and sales taxes, the current portions of finance and insurance chargeback liabilities, contract liabilities, deferred revenue, and self-insurance liabilities, customer deposits, accrued interest payable, liabilities held for sale (which are comprised primarily of floorplan payables of disposal groups held for sale), income taxes 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, contract liabilities, 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 $14.1 million in 2018 , $7.1 million in 2017 , and $6.8 million in 2016 . 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 $1.5 million for 2018 , $0.7 million for 2017 , and $0.7 million for 2016 . 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 $78.8 million as of December 31, 2018 , and $78.1 million as of December 31, 2017 , and are included in Other Current Liabilities and Other Liabilities in the accompanying Consolidated Balance Sheets. Stock-Based Compensation In 2018 and 2017 , we granted stock-based awards in the form of time-based and performance-based restricted stock units (“RSUs”). In 2016, we granted stock-based awards in the form of stock options, restricted stock, and RSUs. Restricted stock awards, which are considered nonvested share awards as defined under U.S. 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. Stock options granted under all plans are non-qualified. Upon exercise of stock options, 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. Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost for time-based RSUs, restricted stock awards, and stock options is recognized on a straight-line basis over the shorter of the stated vesting period or the period until employees become retirement-eligible. Compensation cost for performance-based RSUs is recognized over the requisite service period based on the expected achievement level of the performance goals, which is evaluated over the performance period. The amount of compensat ion cost recognized on performance-based RSUs depends on the relative satisfaction of the performance condition based on performance to date. We account for forfeitures of stock-based awards as they occur. See Note 13 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 for the placement of finance and insurance products, and sales of other products. See Note 2 of the Notes to Consolidated Financial Statements for a discussion of our significant accounting policies related to revenue recognition. 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 10 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 $197.8 million in 2018 , $192.8 million in 2017 , and $196.7 million in 2016 , 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 $66.1 million in 2018 , $65.0 million in 2017 , and $58.5 million in 2016 . 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 se rvice 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 defer 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. 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 RSU 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 and unvested RSU awards. See Note 3 of the Notes to Consolidated Financial Statements for more information on the computation of earnings (loss) per share. Recent Accounting Pronouncements Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard (ASC Topic 606) that amends the accounting guidance on revenue recognition. The new accounting standard is intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The principles in the standard should be applied using a five-step model that includes 1) identifying the contract(s) with a customer, 2) identifying the performance obligations in the contract, 3) determining the transaction price, 4) allocating the transaction price to the performance obligations in the contract, and 5) recognizing revenue when (or as) the performance obligations are satisfied. The standard also requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In addition, the standard amends the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, sales of real estate) to be consistent with the standard’s guidance on recognition and measurement (including the constraint on revenue). The FASB also subsequently issued several amendments to the standard, including clarification on principal versus agent guidance, identifying performance obligations, and immaterial goods and services in a contract. The new accounting standard update must 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). The new accounting standard is effective for reporting periods beginning after December 15, 2017. We adopted the accounting standard effective January 1, 2018, using the modified retrospective approach applied only to contracts not completed as of the date of adoption, with no restatement of comparative periods. Therefore, the comparative information has not been adjusted and continues to be reported under ASC Topic 605. We recognized a net after-tax cumulative effect adjustment to retained earnings of $10.1 million as of the date of adoption. The details and quantitative impacts of the significant changes are described below. Finance and Insurance We participate in future profit pursuant to retrospective commission arrangements with the issuers of certain finance and insurance products, payment of which is contingent upon the annual performance of the portfolio of contracts. We previously recognized this revenue by the amount that would be due at each reporting date based on the performance of the portfolio at such date and recorded amounts due to us as receivables. Under ASC Topic 606, revenue associated with this portion of the transaction price is accelerated as it is considered variable consideration for which we must estimate the amount to which we will be entitled over the contract term, and amounts are reflected as a contract asset until the right to such consideration becomes unconditional, at which time amounts due are reclassified to receivables. Additionally, we previously deferred revenue by the net amount of consideration that we retained for the sale of a contract under our Vehicle Care Program (“VCP”), a vehicle maintenance program that provides a specific number of maintenance services to be redeemed at an AutoNation location over a five-year term. Under ASC Topic 606, we have determined that we act as the principal in this arrangement since we have the primary responsibility to provide the specified services to the customer under the VCP contract. Therefore, we defer the gross revenue on sales of VCP contracts and record such amounts as a contract liability, and reflect the amount due from the third-party administrator for customer claims in Other Current Assets and Other Assets. Parts and Service We previously recognized revenue for an automotive repair and maintenance service when the service was completed and recorded amounts due to us as receivables. Under ASC Topic 606, performance obligations associated with automotive repair and maintenance services are satisfied over time, which results in the acceleration of revenue recognition, and amounts due to us are reflected as a contract asset until the right to such consideration becomes unconditional, at which time amounts due to us are reclassified to receivables. Additionally, the timing of revenue recognition associated with customer loyalty points offered for parts and services for select franchises in certain of our stores is now deferred. We previously accrued the incremental cost of loyalty points awarded. Under the new standard, a customer loyalty program that provides a customer with a material right is accounted for as a separate performance obligation with revenue recognized when the loyalty points are redeemed. Impacts on Consolidated Financial Statements The following tables summarize the impacts to each financial statement line item affected by the adoption of ASC Topic 606 as of and for the twelve months ended December 31, 2018 . Consolidated Balance Sheet Line Items December 31, 2018 Impact of changes in accounting policies As reported Balances without adoption of ASC Topic 606 Impact of adoption Higher/(Lower) Receivables, net $ 976.2 $ 997.0 $ (20.8 ) Inventory $ 3,650.5 $ 3,655.4 $ (4.9 ) Other current assets $ 208.7 $ 150.2 $ 58.5 Other assets $ 517.2 $ 454.6 $ 62.6 Other current liabilities $ 679.9 $ 649.3 $ 30.6 Deferred income taxes $ 89.8 $ 85.1 $ 4.7 Other liabilities $ 275.0 $ 229.8 $ 45.2 Retained earnings $ 3,238.3 $ 3,223.4 $ 14.9 Consolidated Statement of Income Line Items Twelve Months Ended December 31, 2018 Impact of changes in accounting policies As reported Balances without adoption of ASC Topic 606 Impact of adoption Revenue: Parts and service $ 3,447.6 $ 3,447.6 $ — Finance and insurance $ 981.4 $ 975.2 $ 6.2 Cost of sales: Parts and service $ 1,892.3 $ 1,892.4 $ (0.1 ) Gross profit: Parts and service $ 1,555.3 $ 1,555.2 $ 0.1 Finance and insurance $ 981.4 $ 975.2 $ 6.2 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES $ 529.4 $ 523.1 $ 6.3 Income tax provision $ 133.5 $ 132.0 $ 1.5 NET INCOME FROM CONTINUING OPERATIONS $ 395.9 $ 391.1 $ 4.8 NET INCOME $ 396.0 $ 391.2 $ 4.8 Consolidated Statement of Cash Flows Line Items Twelve Months Ended December 31, 2018 Impact of changes in accounting policies As reported Balances without adoption of ASC Topic 606 Impact of adoption Net income $ 396.0 $ 391.2 $ 4.8 Deferred income tax provision $ 14.5 $ 13.0 $ 1.5 (Increase) decrease, net of effects from business combinations and divestitures: Receivables $ 133.7 $ 112.9 $ 20.8 Inventory $ (319.5 ) $ (319.7 ) $ 0.2 Other assets $ (107.9 ) $ (4.8 ) $ (103.1 ) Increase (decrease), net of effects from business combinations Other liabilities $ (2.0 ) $ (77.8 ) $ 75.8 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. We adopted this accounting standard update effective January 1, 2018. The activity on our consolidated statements of cash flows was previously classified in accordance with the provisions of the new standard. Therefore, the provisions of the accounting standard update did not impact our consolidated statements of cash flows. Restricted Cash In November 2016, the FASB issued an accounting standard update that requires the statement of cash flows explain the change during the period in the total of cash and cash equivalents, as well as restricted cash and restricted cash equivalents. Therefore, restricted cash should be included in the beginning-of-period and end-of-period total amounts presented on the statement of cash flows. The amendments in this accounting standard update are effective for periods beginning after December 15, 2017, and should be applied using a retrospective transition method to each period presented. We adopted this accounting standard update effective January 1, 2018, and made the relevant changes, which were not material, to each period presented in our consolidated statements of cash flows. Accounting for Leases In February 2016, the FASB issued an accounting standard update (ASC Topic 842) that amends the accounting guidance on leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting t |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Disaggregation of Revenue The significant majority of our revenue is from contracts with customers. Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue. In the following table, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. We have determined that these categories depict how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. The table below also includes a reconciliation of the disaggregated revenue with our reportable segments. Twelve Months Ended December 31, 2018 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 3,900.8 $ 4,046.4 $ 3,804.4 $ — $ 11,751.6 Used vehicle 1,725.2 1,418.7 1,875.1 104.3 5,123.3 Parts and service 1,082.8 934.8 1,082.2 347.8 3,447.6 Finance and insurance, net 344.4 362.6 246.0 28.4 981.4 Other 81.3 23.9 3.2 0.5 108.9 $ 7,134.5 $ 6,786.4 $ 7,010.9 $ 481.0 $ 21,412.8 Timing of Revenue Recognition Goods and services transferred at a point in time $ 6,441.2 $ 6,079.1 $ 6,098.3 $ 140.9 $ 18,759.5 Goods and services transferred over time (2) 693.3 707.3 912.6 340.1 2,653.3 $ 7,134.5 $ 6,786.4 $ 7,010.9 $ 481.0 $ 21,412.8 (1) “Corporate and other” is comprised of our other businesses, including collision centers, auction operations, AutoNation USA stand-alone used vehicle sales and service centers, and aftermarket collision parts businesses. (2) Represents revenue recognized during the period for automotive repair and maintenance services. Contract Assets and Liabilities When the timing of our provision of goods or services is different from the timing of the payments made by our customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with automotive repair and maintenance services, as well as our estimate of variable consideration that has been included in the transaction price for certain finance and insurance products (retrospective commissions). These contract assets are reclassified to receivables when the right to consideration becomes unconditional. Contract liabilities primarily relate to upfront payments received from customers for the sale of certain finance and insurance products for which our performance obligations are satisfied, and revenue is recognized, as each underlying service of the multi-year contract is completed during the contract term. Our receivables from contracts with customers are included in Receivables, net, our current contract asset is included with Other Current Assets, our long-term contract asset is included with Other Assets, our current contract liability is included with Other Current Liabilities, and our long-term contract liability is included with Other Long-Term Liabilities in our consolidated balance sheet. The opening and closing balances of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities are as follows: December 31, 2018 January 1, 2018 Receivables from contracts with customers, net $ 706.7 $ 854.3 Contract Asset (Current) $ 28.2 $ 18.4 Contract Asset (Long-Term) $ 17.4 $ 1.4 Contract Liability (Current) $ 31.6 $ 26.7 Contract Liability (Long-Term) $ 61.9 $ 63.8 Twelve Months Ended December 31, 2018 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 29.8 Performance obligations satisfied in previous periods $ 23.6 The differences between the opening and closing balances of our contract assets and contract liabilities primarily result from the timing differences between our performance and the customer’s payment, as well as changes in the estimated transaction price related to variable consideration that was constrained for performance obligations satisfied in previous periods. Other significant changes include contract assets of $9.8 million reclassified to receivables. Performance Obligations and Significant Judgments and Estimates Related to Revenue Recognition New and Used Vehicle We sell new vehicles at our franchised dealerships and used vehicles at our franchised dealerships and AutoNation USA stores. The transaction price for a vehicle sale is determined with the customer at the time of sale. Customers often trade in their own vehicle to apply toward the purchase of a retail new or used vehicle. The “trade-in” vehicle is a type of noncash consideration measured at fair value, based on external and internal market data for the specific vehicle, and applied as payment to the contract price for the purchased vehicle. When we sell a new or used vehicle, we typically transfer control at a point in time upon delivery of the vehicle to the customer, which is generally at time of sale, as the customer is able to direct the use of, and obtain substantially all of the benefits from, the vehicle at such time. We do not directly finance our customers’ vehicle purchases or leases. In many cases, we arrange third-party financing for the retail sale or lease of vehicles to our customers in exchange for a fee paid to us by the third-party financial institution. We receive payment directly from the customer at the time of sale or from the third-party financial institution (referred to as contracts-in-transit or vehicle receivables, which are part of our receivables from contracts with customers) within a short period of time following the sale. We establish provisions, which are not significant, for estimated returns and warranties on the basis of both historical information and current trends. We also offer auction services at our AutoNation-branded automotive auctions, revenue from which is included within Used Vehicle wholesale revenue. The transaction price for auction services is based on an established pricing schedule and determined with the customer at the time of sale, and payment is due upon completion of service. We satisfy our performance obligations related to auction services at the point in time that control transfers to the customer, which is when the service is completed. Parts and Service We sell parts and automotive services related to customer-paid repairs and maintenance, repairs and maintenance under manufacturer warranties and extended service contracts, and collision-related repairs. We also sell parts through our wholesale and retail counter channels. Each automotive repair and maintenance service is a single performance obligation that includes both the parts and labor associated with the service. Payment for automotive service work is typically due upon completion of the service, which is generally completed within a short period of time from contract inception. The transaction price for automotive repair and maintenance services is based on the parts used, the number of labor hours applied, and standardized hourly labor rates. We satisfy our performance obligations, transfer control, and recognize revenue over time for automotive repair and maintenance services because we are creating an asset with no alternative use and we have an enforceable right to payment for performance completed to date. We use an input method to recognize revenue and measure progress based on labor hours expended relative to the total labor hours expected to be expended to satisfy the performance obligation. We have determined labor hours expended to be the relevant measure of work performed to complete the automotive repair or maintenance service for the customer. As a practical expedient, since automotive repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue. The transaction price for wholesale and retail counter parts sales is determined at the time of sale based on the quantity and price of each product purchased. Payment is typically due at time of sale, or within a short period of time following the sale. We establish provisions, which are not significant, for estimated parts returns based on historical information and current trends. Delivery methods of wholesale and retail counter parts vary; however, we generally consider control of wholesale and retail counter parts to transfer when the products are shipped, which typically occurs the same day as or within a few days of the sale. We also offer customer loyalty points for parts and service for select franchises in a relative few of our stores and we satisfy our performance obligation and recognize revenue when the loyalty points are redeemed. Amounts deferred related to the customer loyalty programs are insignificant. Finance and Insurance We sell and receive a commission on the following types of finance and insurance 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, among others. We offer 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 sell the products on a commission basis, and, in certain cases, we sell the product, recognize an upfront commission, and participate in future profit pursuant to retrospective commission arrangements with the issuers of those contracts through the life of the related contracts. For retrospective commission arrangements, we are paid annually based on the annual performance of the issuers’ product portfolio. For the majority of finance and insurance product sales, our performance obligation is to arrange for the provision of goods or services by another party. Our performance obligation is satisfied when this arrangement is made, which is when the finance and insurance product is delivered to the end-customer, generally at the time of the vehicle sale. As agent, we recognize revenue in the amount of any fee or commission to which we expect to be entitled, which is the net amount of consideration that we retain after paying the third-party provider the consideration received in exchange for the goods or services to be fulfilled by that party. The retrospective commission we earn on each product sold is a form of variable consideration that is subject to constraint due to it being highly susceptible to factors outside our influence and control. Our agreements with the third- party administrators generally provide for an annual retrospective commission payout based on the product portfolio performance for that year. We estimate variable consideration related to retrospective commissions and perform a constraint analysis using the expected value method based on the historical performance of the product portfolios and current trends to estimate the amount of retrospective commissions to which we expect we will be entitled. At each reporting period, we reassess our expectations about the amount of retrospective commission variable consideration to which we expect to be entitled and recognize revenue when we no longer believe a significant revenue reversal is probable. Additionally, we may be charged back for commissions related to finance and insurance products in the event of early termination, default, or prepayment of the contracts by end-customers (“chargebacks”). An estimated refund liability for chargebacks against the revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized and is based primarily on our historical chargeback experience. We update our measurement of the chargeback liability at each reporting date for changes in expectations about the amount of chargebacks. We also sell a vehicle maintenance program (the Vehicle Care Program or “VCP”) where we act as the principal in the sale since we have the primary responsibility to provide the specified services to the customer under the VCP contract. When a VCP product is sold in conjunction with the sale of a vehicle to the same customer, the stand-alone selling prices of each product are based on observable selling prices. Under a VCP contract, a customer purchases a specific number of maintenance services to be redeemed at an AutoNation location over a five-year term from the date of purchase. We satisfy our performance obligations and recognize revenue as maintenance services are rendered, since the customer benefits when we have completed the maintenance service. Although payment is due from the customer at the time of sale and services are rendered at points in time during a five-year contract term, these contracts do not contain a significant financing component. The following table includes estimated revenue expected to be recognized in the future related to VCP performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. Revenue Expected to Be Recognized by Period Total Less Than 1 Year 1 - 3 Years 3 - 5 Years Revenue expected to be recognized on VCP contracts sold as of period end $ 92.9 $ 31.0 $ 46.4 $ 15.5 We also recognize revenue, net of estimated chargebacks, for commissions earned by us for the transfer of financial assets when we arrange installment loans and leases with third-party lenders in connection with customer vehicle purchases. Other Revenue The majority of our other revenue is generated from the sale of vehicles to fleet/rental car companies that are specifically ordered for such companies (“fleet” sales). Revenue recognition for fleet sales is very similar to the recognition of revenue for new vehicles, described above. Contract Costs For sales commissions incurred related to sales of vehicles and sales of finance and insurance products for which we act as agent, we have elected as a practical expedient to not capitalize the incremental costs to obtain those contracts since they are point-of-sale transactions and the amortization period would be immediate. We have determined that the sales commissions and third-party administrator fees incurred related to sales of VCP products qualify for capitalization since these payments are directly related to sales achieved during a time period and would not have been incurred if the contract had not been obtained. Since the capitalized costs are related to services that are transferred during a five-year contract term, we amortize the assets over the contract term of five years consistent with the pattern of transfer of the service to which the assets relate. As of December 31, 2018 , we had $9.4 million of capitalized costs incurred to obtain or fulfill a VCP contract with a customer. We amortized $3.2 million |
Earnings (Loss) Per Share
Earnings (Loss) Per Share | 12 Months Ended |
Dec. 31, 2018 | |
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 that have not yet vested 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. RSU awards are not considered participating securities as they do not contain non-forfeitable rights to dividends. Basic EPS 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 and vested RSU awards. Diluted EPS 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 and unvested RSU awards. The following table presents the calculation of basic and diluted EPS: 2018 2017 2016 Net income from continuing operations $ 395.9 $ 435.0 $ 431.7 Income (loss) from discontinued operations, net of income taxes 0.1 (0.4 ) (1.2 ) Net income $ 396.0 $ 434.6 $ 430.5 Weighted average common shares outstanding used in calculating basic EPS 90.9 97.8 103.1 Effect of dilutive stock options and unvested RSUs 0.4 0.4 0.7 Weighted average common shares outstanding used in calculating diluted EPS 91.3 98.2 103.8 Basic EPS amounts (1) : Continuing operations $ 4.36 $ 4.45 $ 4.19 Discontinued operations $ — $ — $ (0.01 ) Net income $ 4.36 $ 4.44 $ 4.18 Diluted EPS amounts (1) : Continuing operations $ 4.34 $ 4.43 $ 4.16 Discontinued operations $ — $ — $ (0.01 ) Net income $ 4.34 $ 4.43 $ 4.15 (1) Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. A summary of anti-dilutive equity instruments excluded from the computation of diluted earnings per share is as follows: 2018 2017 2016 Anti-dilutive equity instruments excluded from the computation of diluted earnings per share 2.3 3.1 3.0 |
Receivables, Net
Receivables, Net | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Trade receivables $ 130.4 $ 162.6 Manufacturer receivables 242.3 253.3 Other 31.4 44.9 404.1 460.8 Less: allowances for doubtful accounts (4.6 ) (5.5 ) 399.5 455.3 Contracts-in-transit and vehicle receivables 568.6 655.7 Income taxes receivable (See Note 11) 8.1 — Receivables, net $ 976.2 $ 1,111.0 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 finance and insurance 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, 2018 | |
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: 2018 2017 New vehicles $ 2,874.8 $ 2,577.9 Used vehicles 553.8 576.5 Parts, accessories, and other 221.9 211.2 Inventory $ 3,650.5 $ 3,365.6 The components of vehicle floorplan payables at December 31 are as follows: 2018 2017 Vehicle floorplan payable - trade $ 2,388.0 $ 2,179.1 Vehicle floorplan payable - non-trade 1,609.7 1,627.8 Vehicle floorplan payable $ 3,997.7 $ 3,806.9 Vehicle floorplan payable-trade reflects amounts borrowed to finance the purchase of specific new and, to a lesser extent, used 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 3.5% during 2018 and 2.6% during 2017 . At December 31, 2018 , the aggregate capacity under our floorplan credit agreements with various lenders to finance our new vehicle inventory was approximately $4.8 billion , of which $3.6 billion had been borrowed. Our used vehicle floorplan facilities utilize LIBOR-based interest rates, which averaged 3.5% during 2018 and 2.5% during 2017 . At December 31, 2018 , the aggregate capacity under our floorplan credit agreements with various lenders to finance a portion of our used vehicle inventory was $515.0 million , of which $413.2 million had been borrowed. The remaining borrowing capacity of $101.8 million was limited to $0.5 million |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Land $ 1,360.8 $ 1,332.5 Buildings and improvements 2,320.2 2,121.1 Furniture, fixtures, and equipment 807.1 720.2 4,488.1 4,173.8 Less: accumulated depreciation and amortization (1,332.8 ) (1,211.1 ) Property and equipment, net $ 3,155.3 $ 2,962.7 We capitalized interest in connection with various construction projects to build, upgrade, or remodel our facilities of $1.4 million in 2018 , $1.0 million in 2017 , and $0.5 million in 2016 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Goodwill $ 1,513.2 $ 1,515.0 Franchise rights - indefinite-lived $ 580.1 $ 572.2 Other intangible assets 22.2 23.3 602.3 595.5 Less: accumulated amortization (6.9 ) (8.7 ) Intangible assets, net $ 595.4 $ 586.8 Goodwill Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the years ended December 31, 2018 and 2017 were as follows: Domestic Import Premium Luxury Other Consolidated Goodwill at January 1, 2017 (1) $ 252.1 $ 558.2 $ 697.4 $ 3.6 $ 1,511.3 Acquisitions, dispositions, and other adjustments, net (2) (20.4 ) (25.8 ) 14.7 35.2 3.7 Goodwill at December 31, 2017 (1) 231.7 532.4 712.1 38.8 1,515.0 Acquisitions, dispositions, and other adjustments, net (2) 0.8 (11.5 ) 5.6 3.3 (1.8 ) Goodwill at December 31, 2018 (1) $ 232.5 $ 520.9 $ 717.7 $ 42.1 $ 1,513.2 (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. (2) Includes amounts reclassified to held for sale, which are presented in Other Current Assets in our Consolidated Balance Sheet as of period end. Intangible Assets Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers. As of December 31, 2018 , we had $580.1 million of franchise rights recorded on our Consolidated Balance Sheet, of which $160.5 million was related to Domestic stores, $108.9 million was related to Import stores, and $310.7 million was related to Premium Luxury stores. See Note 17 of the Notes to Consolidated Financial Statements for more information about our annual impairment tests of goodwill and franchise rights. |
Long-Term Debt and Commercial P
Long-Term Debt and Commercial Paper | 12 Months Ended |
Dec. 31, 2018 | |
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: Debt Description Maturity Date Interest Payable 2018 2017 6.75% Senior Notes April 15, 2018 April 15 and October 15 $ — $ 400.0 5.5% Senior Notes February 1, 2020 February 1 and August 1 350.0 350.0 3.35% Senior Notes January 15, 2021 January 15 and July 15 300.0 300.0 3.5% Senior Notes November 15, 2024 May 15 and November 15 450.0 450.0 4.5% Senior Notes October 1, 2025 April 1 and October 1 450.0 450.0 3.8% Senior Notes November 15, 2027 May 15 and November 15 300.0 300.0 Revolving credit facility October 19, 2022 Monthly — — Capital leases and other debt Various dates through 2038 Monthly 133.1 139.4 1,983.1 2,389.4 Less: unamortized debt discounts and debt issuance costs (12.6 ) (15.7 ) Less: current maturities (44.3 ) (414.5 ) Long-term debt, net of current maturities $ 1,926.2 $ 1,959.2 At December 31, 2018 , aggregate maturities of non-vehicle long-term debt were as follows: Year Ending December 31: 2019 $ 44.3 2020 354.8 2021 304.7 2022 4.6 2023 4.8 Thereafter 1,269.9 $ 1,983.1 Senior Unsecured Notes and Credit Agreement The interest rates payable on the 3.35% Senior Notes, 3.5% Senior Notes, 4.5% Senior Notes, and 3.8% Senior Notes are subject to adjustment upon the occurrence of certain credit rating events as provided in the indentures for these senior unsecured notes. In April 2018, we repaid the outstanding $400.0 million of 6.75% Senior Notes. Under our credit agreement, we have a $1.8 billion revolving credit facility as well as 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. 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 $41.8 million at December 31, 2018 , leaving an additional borrowing capacity under the revolving credit facility of $1.8 billion at December 31, 2018 . As of December 31, 2018 , this borrowing capacity was limited under the maximum consolidated leverage ratio contained in our credit agreement to $588.0 million . Our revolving credit facility provides for a commitment fee on undrawn amounts ranging from 0.150% 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, 2018 , we had capital lease and other debt obligations of $133.1 million , which are due at various dates through 2038 . See Note 18 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, 2018 , we had $630.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 3.22% and a weighted-average remaining term of 21 days . At December 31, 2017, we had $330.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 1.97% and a weighted-average remaining term of 24 days |
Chargeback Liability
Chargeback Liability | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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. An estimated chargeback liability is recorded in the period in which the related finance and insurance revenue is recognized. The following is a rollforward of our estimated chargeback liability for each of the three years presented in our Consolidated Financial Statements: 2018 2017 2016 Balance - January 1 $ 120.8 $ 116.8 $ 97.3 Add: Provisions 108.3 96.3 106.6 Deduct: Chargebacks (101.0 ) (92.3 ) (87.1 ) Balance - December 31 $ 128.1 $ 120.8 $ 116.8 |
Self-Insurance
Self-Insurance | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Self-Insurance | SELF-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. At December 31, 2018 and 2017 , current and long-term self-insurance liabilities were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows: 2018 2017 Self-insurance - current portion $ 29.9 $ 29.5 Self-insurance - long-term portion 47.4 48.7 Total self-insurance liabilities $ 77.3 $ 78.2 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 2016 Current: Federal $ 93.0 $ 190.6 $ 234.9 State 26.8 29.4 31.4 Federal and state deferred 10.9 (22.1 ) 3.7 Change in valuation allowance, net 3.5 3.3 0.3 Adjustments and settlements (0.7 ) 0.3 0.3 Income tax provision $ 133.5 $ 201.5 $ 270.6 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: 2018 % 2017 % 2016 % Income tax provision at statutory rate $ 111.2 21.0 $ 222.8 35.0 $ 245.8 35.0 Non-deductible expenses, net 4.9 0.9 5.9 0.9 4.6 0.7 State income taxes, net of federal benefit 22.8 4.3 19.7 3.1 21.7 3.1 138.9 26.2 248.4 39.0 272.1 38.8 Change in tax rate (5.0 ) (0.9 ) (44.2 ) (6.9 ) — — Change in valuation allowance, net 3.5 0.7 3.3 0.5 0.3 — Adjustments and settlements (0.7 ) (0.1 ) 0.3 0.1 0.3 — Federal and state tax credits (1.0 ) (0.2 ) (3.7 ) (0.6 ) (1.9 ) (0.3 ) Other, net (2.2 ) (0.5 ) (2.6 ) (0.4 ) (0.2 ) — Income tax provision $ 133.5 25.2 $ 201.5 31.7 $ 270.6 38.5 Deferred income tax asset and liability components at December 31 are as follows: 2018 2017 Deferred income tax assets: Inventory $ 23.3 $ 22.8 Receivable allowances 1.4 1.9 Warranty, chargeback, and self-insurance liabilities 48.4 47.4 Other accrued liabilities 30.0 25.4 Deferred compensation 19.0 18.8 Stock-based compensation 21.2 18.9 Loss carryforwards—federal and state 7.0 6.5 Other, net 8.8 10.2 Total deferred income tax assets 159.1 151.9 Valuation allowance (8.9 ) (5.4 ) Deferred income tax assets, net of valuation allowance 150.2 146.5 Deferred income tax liabilities: Long-lived assets (intangible assets and property) (225.1 ) (207.1 ) Other, net (14.9 ) (11.3 ) Total deferred income tax liabilities (240.0 ) (218.4 ) Net deferred income tax liabilities $ (89.8 ) $ (71.9 ) Our net deferred tax liability of $89.8 million as of December 31, 2018 and $71.9 million as of December 31, 2017 is classified as Deferred Income Taxes in the accompanying Consolidated Balance Sheets. Income taxes receivables included in Receivables, net totaled $8.1 million at December 31, 2018 and income taxes payable included in Other Current Liabilities totaled $81.1 million at December 31, 2017 . At December 31, 2018 , we had $91.6 million of gross domestic state net operating loss carryforwards and capital loss carryforwards, and $3.3 million of state tax credits, all of which result in a deferred tax asset of $7.0 million and expire from 2019 through 2038 . 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. At December 31, 2018 , we had $4.3 million of valuation allowance related to state net operating loss carryforwards and $4.6 million of valuation allowance related to deferred tax assets for stock-based compensation and other executive compensation impacted by the new tax reform legislation. See “Tax Reform” below. 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 culminate in proposed assessments which may ultimately result in our owing additional taxes. Currently, no tax years are under examination by the IRS and tax years from 2014 to 2016 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: 2018 2017 2016 Balance at January 1 $ 6.4 $ 5.8 $ 5.6 Additions based on tax positions related to the current year — — — Additions for tax positions of prior years 0.6 0.8 0.8 Reductions for tax positions of prior years — — (0.4 ) Reductions for expirations of statute of limitations (0.9 ) (0.2 ) (0.2 ) Settlements (1.8 ) — — Balance at December 31 $ 4.3 $ 6.4 $ 5.8 We had accumulated interest and penalties associated with these unrecognized tax benefits of $6.6 million at December 31, 2018 , $6.8 million at December 31, 2017 , and $6.1 million at December 31, 2016 . We additionally had a deferred tax asset of $2.4 million at December 31, 2018 , $2.8 million at December 31, 2017 , and $4.2 million at December 31, 2016 , related to these balances. The net of the unrecognized tax benefits, associated interest, penalties, and deferred tax asset was $8.5 million at December 31, 2018 , $10.4 million at December 31, 2017 , and $7.7 million at December 31, 2016 , 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 $0.6 million during 2018 , $0.4 million during 2017 , and $0.4 million during 2016 (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, 2019 . Tax Reform On December 22, 2017, H.R. 1 formerly known as the “Tax Cuts and Jobs Act,” was enacted into law. This new tax legislation, among other things, reduced the U.S. federal corporate tax rate from 35% to 21% effective January 1, 2018. At December 31, 2017, we made a reasonable estimate of the effects of the new tax legislation on our deferred tax balances and recognized a provisional benefit of $41.3 million , which was net of a valuation allowance on equity compensation. As of December 31, 2018, we completed our accounting for the tax effects of the new tax legislation. In 2018, and in preparation of our federal and state income tax returns, we refined our calculations remeasuring deferred tax assets and liabilities and recorded a $5.0 million reduction to income tax expense related to our provisional estimate recorded as of December 31, 2017. The reduction was recorded as a component of income tax expense from continuing operations and had an impact of 0.9 |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows: 2018 2017 2016 Shares repurchased 2.1 10.1 10.5 Aggregate purchase price $ 100.0 $ 434.9 $ 497.0 Average purchase price per share $ 47.58 $ 42.99 $ 47.30 As of December 31, 2018 , $263.7 million remained available under our stock repurchase limit most recently authorized by our Board of Directors. Our Board of Directors authorized the retirement of 18.0 million shares of our treasury stock in November 2017, 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: 2018 2017 2016 Shares issued 0.5 1.0 0.3 Proceeds from the exercise of stock options $ 17.8 $ 39.7 $ 8.4 Average exercise price per share $ 35.25 $ 37.85 $ 31.21 The following table presents a summary of shares of common stock issued in connection with grants of restricted stock and settlement of restricted stock units (“RSUs”), as well as shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock and settlement of RSUs: (In actual number of shares) 2018 2017 2016 Shares issued 122,661 20,000 143,424 Shares surrendered to AutoNation to satisfy tax withholding obligations 56,027 26,514 38,906 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The AutoNation, Inc. 2017 Employee Equity and Incentive Plan (the “2017 Plan”) provides for the grant of time-based and performance-based RSUs, 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, RSUs, stock appreciation rights, and other stock-based awards to our non-employee directors. As of December 31, 2018 , the total number of shares authorized for issuance under the 2014 Director Plan was 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. Restricted Stock Units On January 2, 2018, each of our non-employee directors received a grant of 4,764 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. In 2018, our Board’s Compensation Committee approved the grant of 0.6 million RSUs, which included time-based and performance-based RSUs. Time-based RSUs vest in equal installments over four years . The performance-based RSUs are subject to a one-year earnings performance measure. Certain performance-based RSUs vest in equal installments over four years , and others cliff vest after three years subject to the achievement of certain additional performance goals measured over a three-year period. The additional performance goals are based on an additional measure of earnings, a measure of return on invested capital, and a measure of our performance relative to certain customer satisfaction indices. The fair value of each RSU award grant is based on the closing price of our common stock on the date of grant. Compensation cost for time-based RSUs is recognized on a straight-line basis over the shorter of the stated vesting period or the period until employees become retirement-eligible, and for performance-based awards is recognized over the requisite service period based on the expected achievement level of the performance goals, which is evaluated over the performance period. The amount of compensation cost recognized on performance-based RSUs depends on the relative satisfaction of the performance condition based on performance to date. We account for forfeitures of stock-based awards as they occur. The following table summarizes information about vested and nonvested RSUs for 2018 : RSUs Shares Weighted-Average Nonvested at January 1 519,609 $ 43.22 Granted (1) 670,366 $ 49.16 Vested (146,200 ) $ 45.99 Forfeited (15,243 ) $ 44.53 Nonvested at December 31 1,028,532 $ 46.69 (1) The RSUs granted during 2018 are primarily related to our employee annual equity award grant in March 2018 and non-employee director annual equity award grant in January 2018 . The weighted average grant-date fair value of RSUs and total fair value of RSUs vested are summarized in the following table: 2018 2017 2016 Weighted average grant-date fair value of RSUs granted $ 49.16 $ 43.66 $ 58.69 Total fair value of RSUs vested (in millions) $ 7.3 $ 2.2 $ 2.3 Stock Options 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. We use the Black-Scholes valuation model to determine compensation expense and amortize compensation expense on a straight-line basis over the requisite service period of the grants. We account for forfeitures of stock-based awards as they occur. 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 granted during 2016 : 2016 Risk-free interest rate 1.16% - 1.55% Expected dividend yield — Expected term 4 - 7 years Expected volatility 29% - 31% 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 2018 : 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 3.7 $ 48.49 Granted — $ — Exercised (0.5 ) $ 35.25 Forfeited — $ — Expired (0.1 ) $ 59.75 Options outstanding as of December 31 3.1 $ 50.20 5.13 $ 2.5 Options exercisable at December 31 2.7 $ 49.34 4.78 $ 2.5 Options exercisable at December 31 and expected to vest thereafter 3.1 $ 50.23 5.08 $ 2.5 Options available for future grants at December 31 4.8 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: 2018 2017 2016 Weighted average grant-date fair value of stock options granted $ — $ — $ 17.96 Total intrinsic value of stock options exercised (in millions) $ 8.2 $ 11.9 $ 5.3 Restricted Stock Restricted stock awards are considered nonvested share awards as defined under U.S. 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. 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 over the shorter of the stated vesting period or the period until employees become retirement-eligible. We account for forfeitures of stock-based awards as they occur. The following table summarizes information about vested and nonvested restricted stock for 2018 : Restricted Stock Shares Weighted-Average Nonvested at January 1 147,931 $ 55.65 Granted — $ — Vested (68,842 ) $ 55.84 Forfeited (8,371 ) $ 56.27 Nonvested at December 31 70,718 $ 55.38 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: 2018 2017 2016 Weighted average grant-date fair value of restricted stock awards granted $ — $ — $ 52.23 Total fair value of restricted stock awards vested (in millions) $ 3.3 $ 4.2 $ 6.4 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: 2018 2017 2016 RSUs $ 21.7 $ 14.2 $ 2.3 Stock options 1.6 3.1 16.2 Restricted stock 2.2 3.3 6.6 Total stock-based compensation expense $ 25.5 $ 20.6 $ 25.1 Tax benefit related to stock-based compensation expense $ 3.0 $ 7.8 $ 9.6 As of December 31, 2018 , there was $23.4 million of total unrecognized compensation cost related to non-vested stock-based compensation arrangements, of which $20.9 million relates to RSUs, $1.0 million relates to stock options, and $1.5 million relates to restricted stock. These amounts are expected to be recognized over a weighted average period of 1.63 years. Tax benefits related to stock options exercised and vesting of restricted stock and RSUs were $3.4 million in 2018 , $6.2 million in 2017 , and $4.8 million in 2016 |
Store Divestitures
Store Divestitures | 12 Months Ended |
Dec. 31, 2018 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Store Divestitures | STORE DIVESTITURES During 2018, we divested eight Domestic stores, seven Import stores, two Premium Luxury stores, and one collision center. During 2017 , we divested two Domestic stores and four Import stores. During 2016 , we divested five Domestic stores and nine Import stores. We recognized net gains related to store divestitures of $40.3 million in 2018, $78.2 million in 2017, and $61.8 million in 2016. During the fourth quarter of 2017, we also recorded write-downs of $26.2 million |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2018 | |
Business Combinations [Abstract] | |
Acquisitions | ACQUISITIONS During 2018 , we purchased one Premium Luxury store located in California, one collision center located in Maryland, and one collision center located in Texas. Acquisitions are included in the Consolidated Financial Statements from the date of acquisition. The purchase price allocations for the business combinations in 2018 are preliminary and subject to final adjustment. We purchased one store and seven collision centers in 2017 and 20 stores and one collision center in 2016. The acquisitions that occurred during 2018 were not material to our financial condition or results of operations. Additionally, on a pro forma basis as if the results of these acquisitions had been included in our consolidated results for the entire years ended December 31, 2018 and 2017 |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Information | CASH FLOW INFORMATION Cash, Cash Equivalents, and Restricted Cash The total amounts presented on our statements of cash flows include cash, cash equivalents, and restricted cash. Restricted cash includes certain deferred purchase price commitments related to certain acquisitions. The following table provides a reconciliation of cash and cash equivalents reported on our Consolidated Balance Sheets to the total amounts reported on our Consolidated Statements of Cash Flows: Years Ended December 31, 2018 2017 Cash and cash equivalents $ 48.6 $ 69.2 Restricted cash included in Current Assets 0.8 1.9 Total cash, cash equivalents, and restricted cash $ 49.4 $ 71.1 Non-Cash Investing and Financing Activities We had non-cash investing and financing activities related to increases in property acquired under capital leases and other financing arrangements of $9.6 million during 2018 and $11.5 million during 2017 . We had non-cash investing and financing activities of $3.3 million and $47.2 million related to capital leases and deferred purchase price commitments associated with our 2017 and 2016 acquisitions, respectively. We also had accrued purchases of property and equipment of $41.3 million at December 31, 2018 , $48.5 million at December 31, 2017 , and $29.1 million at December 31, 2016 . Interest and Income Taxes Paid We made interest payments, net of amounts capitalized and including interest on vehicle inventory financing, of $245.6 million in 2018 , $205.9 million in 2017 , and $183.9 million in 2016 . We made income tax payments, net of income tax refunds, of $210.0 million in 2018 , $127.0 million in 2017 , and $265.5 million in 2016 . |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2018 | |
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, receivables, 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. • Investment in equity security: In October 2018, we invested $50.0 million in an equity security that does not have a readily determinable fair value. Therefore, we have elected to apply a measurement alternative and have recorded the equity interest at its cost of $50.0 million , which will be subsequently adjusted for observable price changes. The equity interest is reported in Other Assets in the accompanying Consolidated Balance Sheet. We have considered all relevant transactions since the date of our investment through December 31, 2018, and we have not recorded any impairments or upward or downward adjustments to the carrying amount of our investment as of December 31, 2018, as there have not been any changes in the observable price of our equity interest as of such date. • Fixed rate long-term debt: Our fixed rate long-term debt consists primarily of amounts outstanding under our senior unsecured notes. We estimate the fair value of our senior unsecured notes using quoted prices for the identical liability (Level 1). A summary of the aggregate carrying values and fair values of our fixed rate long-term debt is as follows: December 31, 2018 December 31, 2017 Carrying value $ 1,970.5 $ 2,373.7 Fair value $ 1,908.9 $ 2,442.1 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 a mount, 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, 2018 and 2017 : 2018 2017 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 $ 31.7 $ (8.1 ) $ — $ — Long-lived assets held and used $ — $ (2.6 ) $ — $ (0.4 ) Long-lived assets held for sale in continuing operations $ 7.4 $ (0.6 ) $ 121.3 $ (26.0 ) Goodwill and Other Intangible Assets Goodwill for our reporting units is tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that the carrying value of a reporting unit more likely than not exceeds its fair value. Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment as of April 30 , 2018 , and determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts. We chose to perform a quantitative goodwill impairment test as of April 30, 2017, and no goodwill impairment charges resulted from the quantitative impairment test. The quantitative goodwill impairment test requires a determination of whether the fair value of a reporting unit is less than its carrying value. We estimate the fair value of our reporting units using an “income” valuation approach, which discounts projected free cash flows of the reporting unit at a computed weighted average cost of capital as the discount rate. The income valuation approach requires the use of significant estimates and assumptions, which include revenue growth rates and future operating margins used to calculate projected future cash flows, weighted average costs of capital, and future economic and market conditions. In connection with this process, we also reconcile the estimated aggregate fair values of our reporting units to our market capitalization, including consideration of a control premium that represents the estimated amount an investor would pay for our equity securities to obtain a controlling interest. We believe that this reconciliation process is consistent with a market participant perspective. We base our cash flow forecasts on our knowledge of the automotive industry, our recent performance, our expectations of our future performance, and other assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We also make certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of our reporting units. For our April 30 , 2016 annual goodwill impairment assessments, we chose to make a qualitative evaluation about the likelihood of goodwill impairment and determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts. Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives and are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred. We elected to perform quantitative franchise rights impairment tests as of April 30 , 2018. As a result of these tests, we recorded non-cash impairment charges of $8.1 million to reduce the carrying values of certain 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 and are reported in the “Corporate and other” category of our segment information. The quantitative impairment test for franchise rights requires the comparison of the franchise rights’ estimated fair value to carrying value by store. Fair values of rights under franchise agreements are estimated using Level 3 inputs by discounting expected future cash flows of the store. The forecasted cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates, margins, working capital requirements, capital expenditures, and cost of capital, for which we utilize certain market participant-based assumptions, using third-party industry projections, economic projections, and other marketplace data we believe to be reasonable. The development of the assumptions used in our annual impairment tests are coordinated by our financial planning and analysis group, and the assumptions are reviewed by management. We elected to perform quantitative franchise rights impairment tests as of April 30 , 2017, and no impairment charges resulted from these quantitative tests. For our April 30, 2016 annual franchise rights impairment assessment, we chose to make a qualitative evaluation of the likehood of franchise impairments to determine whether it was necessary to perform a quantitative test. 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. 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 certain cases, fair value measurements are based on pending agreements to sell the related assets. 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. We had assets held for sale in continuing operations of $67.8 million as of December 31, 2018 , and $169.1 million as of December 31, 2017 , primarily related to property held for sale, as well as inventory, goodwill, franchise rights, and property of disposal groups held for sale. We had assets held for sale in discontinued operations of $14.1 million as of December 31, 2018 , and $14.4 million as of December 31, 2017 , primarily related to property held for sale. Assets held for sale are included in Other Current Assets in our Consolidated Balance Sheets. The non-cash impairment charges recorded in 2018 and 2017 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 and 2017 , 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 $66.2 million in 2018 , $56.3 million in 2017 , and $52.8 million in 2016 . 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, 2018 , are as follows: Noncancelable Lease Commitments Capital Operating (1) 2019 $ 35.7 $ 61.2 2020 10.4 51.0 2021 10.1 46.1 2022 10.2 42.1 2023 10.1 36.6 Thereafter 108.7 258.4 Total minimum lease payments $ 185.2 $ 495.4 Less: Amounts representing interest (69.5 ) $ 115.7 (1) Future minimum operating lease payments do not reflect future minimum sublease income of $2.2 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 2019 to 2034 are approximately $17 million at December 31, 2018 . 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, 2018 , surety bonds, letters of credit, and cash deposits totaled $102.5 million , of which $41.8 million were 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 |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION At December 31, 2018 , 2017 , and 2016 , 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, Audi, Lexus, and Jaguar Land Rover. 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, auction operations, AutoNation USA stand-alone used vehicle sales and service centers, and aftermarket collision parts businesses, all of which generate revenues but do not meet the quantitative thresholds for determining reportable segments, 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. The following tables provide information on revenues from external customers, segment income of our reportable segments, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures. Year Ended December 31, 2018 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,134.5 $ 6,786.4 $ 7,010.9 $ 481.0 $ 21,412.8 Floorplan interest expense $ 51.3 $ 31.0 $ 41.7 $ 6.4 $ 130.4 Depreciation and amortization $ 37.3 $ 33.2 $ 47.6 $ 48.1 $ 166.2 Segment income (loss) (1) $ 249.3 $ 304.7 $ 340.9 $ (247.4 ) $ 647.5 Capital expenditures $ 77.7 $ 56.2 $ 144.2 $ 115.5 $ 393.6 Segment assets $ 2,684.5 $ 1,934.3 $ 3,046.4 $ 2,999.9 $ 10,665.1 Year Ended December 31, 2017 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,452.8 $ 6,873.4 $ 6,832.7 $ 375.7 $ 21,534.6 Floorplan interest expense $ 40.9 $ 23.2 $ 28.4 $ 4.5 $ 97.0 Depreciation and amortization $ 38.2 $ 34.3 $ 44.5 $ 41.6 $ 158.6 Segment income (loss) (1) $ 257.1 $ 303.1 $ 348.8 $ (162.6 ) $ 746.4 Capital expenditures $ 36.2 $ 32.8 $ 101.7 $ 162.2 $ 332.9 Segment assets $ 2,563.9 $ 1,992.6 $ 2,716.8 $ 2,998.2 $ 10,271.5 Twelve Months Ended December 31, 2016 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,810.0 $ 6,886.1 $ 6,665.3 $ 247.6 $ 21,609.0 Floorplan interest expense $ 33.7 $ 17.4 $ 22.7 $ 2.7 $ 76.5 Depreciation and amortization $ 37.5 $ 35.4 $ 40.7 $ 29.8 $ 143.4 Segment income (loss) (1) $ 311.1 $ 296.8 $ 350.2 $ (145.1 ) $ 813.0 Capital expenditures $ 62.5 $ 28.0 $ 95.6 $ 67.1 $ 253.2 (1) Segment income is defined as operating income less floorplan interest expense. The following is a reconciliation of the total of the reportable segments’ revenue and segment income to our consolidated revenue and income from continuing operations before income taxes, respectively. Years Ended December 31, 2018 2017 2016 Total external revenues for reportable segments $ 20,931.8 $ 21,158.9 $ 21,361.4 Corporate and other revenues 481.0 375.7 247.6 Total consolidated revenues $ 21,412.8 $ 21,534.6 $ 21,609.0 Years Ended December 31, 2018 2017 2016 Total segment income for reportable segments $ 894.9 $ 909.0 $ 958.1 Corporate and other (247.4 ) (162.6 ) (145.1 ) Other interest expense (119.4 ) (120.2 ) (115.5 ) Interest income 1.1 1.0 1.1 Other income, net 0.2 9.3 3.7 Income from continuing operations before income taxes $ 529.4 $ 636.5 $ 702.3 |
Business and Credit Concentrati
Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2018 | |
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 2018 , approximately 62% 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 $242.3 million at December 31, 2018 , and $253.3 million at December 31, 2017 . 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 92% of the new vehicles that we sold in 2018 , are manufactured by Toyota (including Lexus), Honda, Ford, 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, 2018 , we do not consider AutoNation to have any significant non-manufacturer concentrations of credit risk. |
Multiemployer Pension Plans
Multiemployer Pension Plans | 12 Months Ended |
Dec. 31, 2018 | |
Multiemployer Plans [Abstract] | |
Multiemployer Pension Plans | MULTIEMPLOYER PENSION PLANS Five of our 239 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, 2018 , 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 2018 and 2017 is for the plan’s year end at December 31, 2017 , and December 31, 2016 , 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 2018 , 2017 , and 2016 contributions. Pension Protection Act Zone Status Contributions of AutoNation ($ in millions) (1) Expiration Date of Collective-Bargaining Agreement Pension Fund EIN/Pension PlanNumber 2018 2017 2018 2017 2016 Surcharge Imposed Automotive Industries Pension Plan 94-1133245 - 001 Red Red $ 1.4 $ 1.3 $ 1.1 Yes (2) Other funds 0.3 0.3 0.4 Total contributions $ 1.7 $ 1.6 $ 1.5 (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, 2017 or 2016 . (2) We are party to three collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. Two of the agreements have an expiration date of December 31, 2019, and one agreement has an expiration date of December 31, 2021. |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2018 | |
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 U.S. generally accepted accounting principles 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 critical accounting estimates made in the accompanying Consolidated Financial Statements include certain assumptions related to goodwill, other intangible assets, and accruals for chargebacks against revenue recognized from the sale of finance and insurance products. Other significant accounting estimates include certain assumptions related to long-lived assets, assets held for sale, accruals related to self-insurance programs, certain legal proceedings, and estimated tax liabilities. |
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 net realizable value 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 or net realizable value. |
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 6 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. Such events or changes may include a significant decrease in market value, a significant change in the business climate in a particular market, a current expectation that more-likely-than-not a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, or a current-period operating or cash flow loss combined with historical losses or projected future losses. We use an estimate of the related undiscounted cash flows over the remaining life of the asset (asset group) in assessing whether an asset (asset group) has been impaired. We measure impairment losses based upon the amount by which the carrying amount of the asset (asset group) exceeds the fair value. |
Goodwill and Other Intangible Assets, net | Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so. Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from three to thirty years . |
Stock-Based Compensation | In 2018 and 2017 , we granted stock-based awards in the form of time-based and performance-based restricted stock units (“RSUs”). In 2016, we granted stock-based awards in the form of stock options, restricted stock, and RSUs. Restricted stock awards, which are considered nonvested share awards as defined under U.S. 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. Stock options granted under all plans are non-qualified. Upon exercise of stock options, 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. Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost for time-based RSUs, restricted stock awards, and stock options is recognized on a straight-line basis over the shorter of the stated vesting period or the period until employees become retirement-eligible. Compensation cost for performance-based RSUs is recognized over the requisite service period based on the expected achievement level of the performance goals, which is evaluated over the performance period. The amount of compensat |
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 se rvice 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 defer 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. |
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 RSU 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 and unvested RSU awards. |
Recent Accounting Pronouncements | Revenue Recognition In May 2014, the Financial Accounting Standards Board (“FASB”) issued a new accounting standard (ASC Topic 606) that amends the accounting guidance on revenue recognition. The new accounting standard is intended to provide a more robust framework for addressing revenue issues, improve comparability of revenue recognition practices, and improve disclosure requirements. Under the new standard, revenue is recognized when a customer obtains control of promised goods or services and is recognized in an amount that reflects the consideration which the entity expects to receive in exchange for those goods or services. The principles in the standard should be applied using a five-step model that includes 1) identifying the contract(s) with a customer, 2) identifying the performance obligations in the contract, 3) determining the transaction price, 4) allocating the transaction price to the performance obligations in the contract, and 5) recognizing revenue when (or as) the performance obligations are satisfied. The standard also requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. In addition, the standard amends the existing requirements for the recognition of a gain or loss on the transfer of nonfinancial assets that are not in a contract with a customer (for example, sales of real estate) to be consistent with the standard’s guidance on recognition and measurement (including the constraint on revenue). The FASB also subsequently issued several amendments to the standard, including clarification on principal versus agent guidance, identifying performance obligations, and immaterial goods and services in a contract. The new accounting standard update must 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). The new accounting standard is effective for reporting periods beginning after December 15, 2017. We adopted the accounting standard effective January 1, 2018, using the modified retrospective approach applied only to contracts not completed as of the date of adoption, with no restatement of comparative periods. Therefore, the comparative information has not been adjusted and continues to be reported under ASC Topic 605. We recognized a net after-tax cumulative effect adjustment to retained earnings of $10.1 million as of the date of adoption. The details and quantitative impacts of the significant changes are described below. Finance and Insurance We participate in future profit pursuant to retrospective commission arrangements with the issuers of certain finance and insurance products, payment of which is contingent upon the annual performance of the portfolio of contracts. We previously recognized this revenue by the amount that would be due at each reporting date based on the performance of the portfolio at such date and recorded amounts due to us as receivables. Under ASC Topic 606, revenue associated with this portion of the transaction price is accelerated as it is considered variable consideration for which we must estimate the amount to which we will be entitled over the contract term, and amounts are reflected as a contract asset until the right to such consideration becomes unconditional, at which time amounts due are reclassified to receivables. Additionally, we previously deferred revenue by the net amount of consideration that we retained for the sale of a contract under our Vehicle Care Program (“VCP”), a vehicle maintenance program that provides a specific number of maintenance services to be redeemed at an AutoNation location over a five-year term. Under ASC Topic 606, we have determined that we act as the principal in this arrangement since we have the primary responsibility to provide the specified services to the customer under the VCP contract. Therefore, we defer the gross revenue on sales of VCP contracts and record such amounts as a contract liability, and reflect the amount due from the third-party administrator for customer claims in Other Current Assets and Other Assets. Parts and Service We previously recognized revenue for an automotive repair and maintenance service when the service was completed and recorded amounts due to us as receivables. Under ASC Topic 606, performance obligations associated with automotive repair and maintenance services are satisfied over time, which results in the acceleration of revenue recognition, and amounts due to us are reflected as a contract asset until the right to such consideration becomes unconditional, at which time amounts due to us are reclassified to receivables. Additionally, the timing of revenue recognition associated with customer loyalty points offered for parts and services for select franchises in certain of our stores is now deferred. We previously accrued the incremental cost of loyalty points awarded. Under the new standard, a customer loyalty program that provides a customer with a material right is accounted for as a separate performance obligation with revenue recognized when the loyalty points are redeemed. Impacts on Consolidated Financial Statements The following tables summarize the impacts to each financial statement line item affected by the adoption of ASC Topic 606 as of and for the twelve months ended December 31, 2018 . Consolidated Balance Sheet Line Items December 31, 2018 Impact of changes in accounting policies As reported Balances without adoption of ASC Topic 606 Impact of adoption Higher/(Lower) Receivables, net $ 976.2 $ 997.0 $ (20.8 ) Inventory $ 3,650.5 $ 3,655.4 $ (4.9 ) Other current assets $ 208.7 $ 150.2 $ 58.5 Other assets $ 517.2 $ 454.6 $ 62.6 Other current liabilities $ 679.9 $ 649.3 $ 30.6 Deferred income taxes $ 89.8 $ 85.1 $ 4.7 Other liabilities $ 275.0 $ 229.8 $ 45.2 Retained earnings $ 3,238.3 $ 3,223.4 $ 14.9 Consolidated Statement of Income Line Items Twelve Months Ended December 31, 2018 Impact of changes in accounting policies As reported Balances without adoption of ASC Topic 606 Impact of adoption Revenue: Parts and service $ 3,447.6 $ 3,447.6 $ — Finance and insurance $ 981.4 $ 975.2 $ 6.2 Cost of sales: Parts and service $ 1,892.3 $ 1,892.4 $ (0.1 ) Gross profit: Parts and service $ 1,555.3 $ 1,555.2 $ 0.1 Finance and insurance $ 981.4 $ 975.2 $ 6.2 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES $ 529.4 $ 523.1 $ 6.3 Income tax provision $ 133.5 $ 132.0 $ 1.5 NET INCOME FROM CONTINUING OPERATIONS $ 395.9 $ 391.1 $ 4.8 NET INCOME $ 396.0 $ 391.2 $ 4.8 Consolidated Statement of Cash Flows Line Items Twelve Months Ended December 31, 2018 Impact of changes in accounting policies As reported Balances without adoption of ASC Topic 606 Impact of adoption Net income $ 396.0 $ 391.2 $ 4.8 Deferred income tax provision $ 14.5 $ 13.0 $ 1.5 (Increase) decrease, net of effects from business combinations and divestitures: Receivables $ 133.7 $ 112.9 $ 20.8 Inventory $ (319.5 ) $ (319.7 ) $ 0.2 Other assets $ (107.9 ) $ (4.8 ) $ (103.1 ) Increase (decrease), net of effects from business combinations Other liabilities $ (2.0 ) $ (77.8 ) $ 75.8 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. We adopted this accounting standard update effective January 1, 2018. The activity on our consolidated statements of cash flows was previously classified in accordance with the provisions of the new standard. Therefore, the provisions of the accounting standard update did not impact our consolidated statements of cash flows. Restricted Cash In November 2016, the FASB issued an accounting standard update that requires the statement of cash flows explain the change during the period in the total of cash and cash equivalents, as well as restricted cash and restricted cash equivalents. Therefore, restricted cash should be included in the beginning-of-period and end-of-period total amounts presented on the statement of cash flows. The amendments in this accounting standard update are effective for periods beginning after December 15, 2017, and should be applied using a retrospective transition method to each period presented. We adopted this accounting standard update effective January 1, 2018, and made the relevant changes, which were not material, to each period presented in our consolidated statements of cash flows. Accounting for Leases In February 2016, the FASB issued an accounting standard update (ASC Topic 842) that amends the accounting guidance on leases. The new standard establishes a right-of-use (ROU) model that requires a lessee to record an ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The FASB also subsequently issued amendments to the standard, including providing an additional and optional transition method to adopt the new standard, described below, as well as certain practical expedients related to land easements and lessor accounting. The amendments in this accounting standard update are effective for us on January 1, 2019, with early adoption permitted. We will adopt this accounting standard update effective January 1, 2019. The accounting standard update originally required the use of a modified retrospective approach reflecting the application of the standard to leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements with the option to elect certain practical expedients. A subsequent amendment to the standard provides an additional and optional transition method that allows entities to initially apply the new leases standard at the adoption date and recognize a cumulative effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity’s reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard will continue to be in accordance with ASC Topic 840 if the optional transition method is elected. We plan to adopt the standard using the optional transition method with no restatement of comparative periods and a cumulative effect adjustment, if any, recognized as of the date of adoption. We expect that this standard will have a material effect on our financial statements due to the recognition of new ROU assets and lease liabilities on our consolidated balance sheet for real estate and equipment operating leases. As part of our implementation process, we have assessed our lease arrangements, evaluated practical expedient and accounting policy elections, and implemented software to meet the reporting requirements of this standard. We also have evaluated the changes in controls and processes that are necessary to implement the new standard, and no material changes were required. The new standard provides a number of optional practical expedients in transition. We expect to elect the ‘package of practical expedients,’ which permits us not to reassess under the new standard our prior conclusions about lease identification, lease classification, and initial direct costs. We do not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to us. Consequently, on adoption, we expect to recognize additional operating liabilities ranging from $325 million to $400 million , with corresponding ROU assets of approximately the same amount based on the present value of the remaining minimum rental payments under current leasing standards for existing operating leases. The new standard also provides practical expedients for an entity’s ongoing accounting. We currently expect to elect the short-term lease recognition exemption for all leases that qualify. As a result, for those leases that qualify, we will not recognize ROU assets or lease liabilities, including for existing short-term leases of those assets in transition. We also currently expect to elect the practical expedient to not separate lease and non-lease components for the majority of our leases. We also expect significant new disclosures about our leasing activities in accordance with the new standard. |
Taxes Assessed by Governmental Authorities | Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue. |
Revenue Recognition | New and Used Vehicle We sell new vehicles at our franchised dealerships and used vehicles at our franchised dealerships and AutoNation USA stores. The transaction price for a vehicle sale is determined with the customer at the time of sale. Customers often trade in their own vehicle to apply toward the purchase of a retail new or used vehicle. The “trade-in” vehicle is a type of noncash consideration measured at fair value, based on external and internal market data for the specific vehicle, and applied as payment to the contract price for the purchased vehicle. When we sell a new or used vehicle, we typically transfer control at a point in time upon delivery of the vehicle to the customer, which is generally at time of sale, as the customer is able to direct the use of, and obtain substantially all of the benefits from, the vehicle at such time. We do not directly finance our customers’ vehicle purchases or leases. In many cases, we arrange third-party financing for the retail sale or lease of vehicles to our customers in exchange for a fee paid to us by the third-party financial institution. We receive payment directly from the customer at the time of sale or from the third-party financial institution (referred to as contracts-in-transit or vehicle receivables, which are part of our receivables from contracts with customers) within a short period of time following the sale. We establish provisions, which are not significant, for estimated returns and warranties on the basis of both historical information and current trends. We also offer auction services at our AutoNation-branded automotive auctions, revenue from which is included within Used Vehicle wholesale revenue. The transaction price for auction services is based on an established pricing schedule and determined with the customer at the time of sale, and payment is due upon completion of service. We satisfy our performance obligations related to auction services at the point in time that control transfers to the customer, which is when the service is completed. Parts and Service We sell parts and automotive services related to customer-paid repairs and maintenance, repairs and maintenance under manufacturer warranties and extended service contracts, and collision-related repairs. We also sell parts through our wholesale and retail counter channels. Each automotive repair and maintenance service is a single performance obligation that includes both the parts and labor associated with the service. Payment for automotive service work is typically due upon completion of the service, which is generally completed within a short period of time from contract inception. The transaction price for automotive repair and maintenance services is based on the parts used, the number of labor hours applied, and standardized hourly labor rates. We satisfy our performance obligations, transfer control, and recognize revenue over time for automotive repair and maintenance services because we are creating an asset with no alternative use and we have an enforceable right to payment for performance completed to date. We use an input method to recognize revenue and measure progress based on labor hours expended relative to the total labor hours expected to be expended to satisfy the performance obligation. We have determined labor hours expended to be the relevant measure of work performed to complete the automotive repair or maintenance service for the customer. As a practical expedient, since automotive repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue. The transaction price for wholesale and retail counter parts sales is determined at the time of sale based on the quantity and price of each product purchased. Payment is typically due at time of sale, or within a short period of time following the sale. We establish provisions, which are not significant, for estimated parts returns based on historical information and current trends. Delivery methods of wholesale and retail counter parts vary; however, we generally consider control of wholesale and retail counter parts to transfer when the products are shipped, which typically occurs the same day as or within a few days of the sale. We also offer customer loyalty points for parts and service for select franchises in a relative few of our stores and we satisfy our performance obligation and recognize revenue when the loyalty points are redeemed. Amounts deferred related to the customer loyalty programs are insignificant. Finance and Insurance We sell and receive a commission on the following types of finance and insurance 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, among others. We offer 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 sell the products on a commission basis, and, in certain cases, we sell the product, recognize an upfront commission, and participate in future profit pursuant to retrospective commission arrangements with the issuers of those contracts through the life of the related contracts. For retrospective commission arrangements, we are paid annually based on the annual performance of the issuers’ product portfolio. For the majority of finance and insurance product sales, our performance obligation is to arrange for the provision of goods or services by another party. Our performance obligation is satisfied when this arrangement is made, which is when the finance and insurance product is delivered to the end-customer, generally at the time of the vehicle sale. As agent, we recognize revenue in the amount of any fee or commission to which we expect to be entitled, which is the net amount of consideration that we retain after paying the third-party provider the consideration received in exchange for the goods or services to be fulfilled by that party. The retrospective commission we earn on each product sold is a form of variable consideration that is subject to constraint due to it being highly susceptible to factors outside our influence and control. Our agreements with the third- party administrators generally provide for an annual retrospective commission payout based on the product portfolio performance for that year. We estimate variable consideration related to retrospective commissions and perform a constraint analysis using the expected value method based on the historical performance of the product portfolios and current trends to estimate the amount of retrospective commissions to which we expect we will be entitled. At each reporting period, we reassess our expectations about the amount of retrospective commission variable consideration to which we expect to be entitled and recognize revenue when we no longer believe a significant revenue reversal is probable. Additionally, we may be charged back for commissions related to finance and insurance products in the event of early termination, default, or prepayment of the contracts by end-customers (“chargebacks”). An estimated refund liability for chargebacks against the revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized and is based primarily on our historical chargeback experience. We update our measurement of the chargeback liability at each reporting date for changes in expectations about the amount of chargebacks. |
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. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies Description of Business and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Adoption of ASC 606, Financial Statement Impact | The following tables summarize the impacts to each financial statement line item affected by the adoption of ASC Topic 606 as of and for the twelve months ended December 31, 2018 . Consolidated Balance Sheet Line Items December 31, 2018 Impact of changes in accounting policies As reported Balances without adoption of ASC Topic 606 Impact of adoption Higher/(Lower) Receivables, net $ 976.2 $ 997.0 $ (20.8 ) Inventory $ 3,650.5 $ 3,655.4 $ (4.9 ) Other current assets $ 208.7 $ 150.2 $ 58.5 Other assets $ 517.2 $ 454.6 $ 62.6 Other current liabilities $ 679.9 $ 649.3 $ 30.6 Deferred income taxes $ 89.8 $ 85.1 $ 4.7 Other liabilities $ 275.0 $ 229.8 $ 45.2 Retained earnings $ 3,238.3 $ 3,223.4 $ 14.9 Consolidated Statement of Income Line Items Twelve Months Ended December 31, 2018 Impact of changes in accounting policies As reported Balances without adoption of ASC Topic 606 Impact of adoption Revenue: Parts and service $ 3,447.6 $ 3,447.6 $ — Finance and insurance $ 981.4 $ 975.2 $ 6.2 Cost of sales: Parts and service $ 1,892.3 $ 1,892.4 $ (0.1 ) Gross profit: Parts and service $ 1,555.3 $ 1,555.2 $ 0.1 Finance and insurance $ 981.4 $ 975.2 $ 6.2 INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES $ 529.4 $ 523.1 $ 6.3 Income tax provision $ 133.5 $ 132.0 $ 1.5 NET INCOME FROM CONTINUING OPERATIONS $ 395.9 $ 391.1 $ 4.8 NET INCOME $ 396.0 $ 391.2 $ 4.8 Consolidated Statement of Cash Flows Line Items Twelve Months Ended December 31, 2018 Impact of changes in accounting policies As reported Balances without adoption of ASC Topic 606 Impact of adoption Net income $ 396.0 $ 391.2 $ 4.8 Deferred income tax provision $ 14.5 $ 13.0 $ 1.5 (Increase) decrease, net of effects from business combinations and divestitures: Receivables $ 133.7 $ 112.9 $ 20.8 Inventory $ (319.5 ) $ (319.7 ) $ 0.2 Other assets $ (107.9 ) $ (4.8 ) $ (103.1 ) Increase (decrease), net of effects from business combinations Other liabilities $ (2.0 ) $ (77.8 ) $ 75.8 |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | In the following table, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. We have determined that these categories depict how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. The table below also includes a reconciliation of the disaggregated revenue with our reportable segments. Twelve Months Ended December 31, 2018 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 3,900.8 $ 4,046.4 $ 3,804.4 $ — $ 11,751.6 Used vehicle 1,725.2 1,418.7 1,875.1 104.3 5,123.3 Parts and service 1,082.8 934.8 1,082.2 347.8 3,447.6 Finance and insurance, net 344.4 362.6 246.0 28.4 981.4 Other 81.3 23.9 3.2 0.5 108.9 $ 7,134.5 $ 6,786.4 $ 7,010.9 $ 481.0 $ 21,412.8 Timing of Revenue Recognition Goods and services transferred at a point in time $ 6,441.2 $ 6,079.1 $ 6,098.3 $ 140.9 $ 18,759.5 Goods and services transferred over time (2) 693.3 707.3 912.6 340.1 2,653.3 $ 7,134.5 $ 6,786.4 $ 7,010.9 $ 481.0 $ 21,412.8 (1) “Corporate and other” is comprised of our other businesses, including collision centers, auction operations, AutoNation USA stand-alone used vehicle sales and service centers, and aftermarket collision parts businesses. (2) Represents revenue recognized during the period for automotive repair and maintenance services. |
Contract Assets and Liabilities | The opening and closing balances of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities are as follows: December 31, 2018 January 1, 2018 Receivables from contracts with customers, net $ 706.7 $ 854.3 Contract Asset (Current) $ 28.2 $ 18.4 Contract Asset (Long-Term) $ 17.4 $ 1.4 Contract Liability (Current) $ 31.6 $ 26.7 Contract Liability (Long-Term) $ 61.9 $ 63.8 Twelve Months Ended December 31, 2018 Revenue recognized in the period from: Amounts included in contract liability at the beginning of the period $ 29.8 Performance obligations satisfied in previous periods $ 23.6 The differences between the opening and closing balances of our contract assets and contract liabilities primarily result from the timing differences between our performance and the customer’s payment, as well as changes in the estimated transaction price related to variable consideration that was constrained for performance obligations satisfied in previous periods. Other significant changes include contract assets of $9.8 million |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table includes estimated revenue expected to be recognized in the future related to VCP performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. Revenue Expected to Be Recognized by Period Total Less Than 1 Year 1 - 3 Years 3 - 5 Years Revenue expected to be recognized on VCP contracts sold as of period end $ 92.9 $ 31.0 $ 46.4 $ 15.5 |
Earnings (Loss) Per Share (Tabl
Earnings (Loss) Per Share (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Earnings Per Share [Abstract] | |
Basic and Diluted EPS | The following table presents the calculation of basic and diluted EPS: 2018 2017 2016 Net income from continuing operations $ 395.9 $ 435.0 $ 431.7 Income (loss) from discontinued operations, net of income taxes 0.1 (0.4 ) (1.2 ) Net income $ 396.0 $ 434.6 $ 430.5 Weighted average common shares outstanding used in calculating basic EPS 90.9 97.8 103.1 Effect of dilutive stock options and unvested RSUs 0.4 0.4 0.7 Weighted average common shares outstanding used in calculating diluted EPS 91.3 98.2 103.8 Basic EPS amounts (1) : Continuing operations $ 4.36 $ 4.45 $ 4.19 Discontinued operations $ — $ — $ (0.01 ) Net income $ 4.36 $ 4.44 $ 4.18 Diluted EPS amounts (1) : Continuing operations $ 4.34 $ 4.43 $ 4.16 Discontinued operations $ — $ — $ (0.01 ) Net income $ 4.34 $ 4.43 $ 4.15 (1) Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. |
Anti-Dilutive Equity Instruments Excluded From The Computation Of Diluted Earnings Per Share | A summary of anti-dilutive equity instruments excluded from the computation of diluted earnings per share is as follows: 2018 2017 2016 Anti-dilutive equity instruments excluded from the computation of diluted earnings per share 2.3 3.1 3.0 |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 Trade receivables $ 130.4 $ 162.6 Manufacturer receivables 242.3 253.3 Other 31.4 44.9 404.1 460.8 Less: allowances for doubtful accounts (4.6 ) (5.5 ) 399.5 455.3 Contracts-in-transit and vehicle receivables 568.6 655.7 Income taxes receivable (See Note 11) 8.1 — Receivables, net $ 976.2 $ 1,111.0 |
Inventory and Vehicle Floorpl_2
Inventory and Vehicle Floorplan Payable (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Inventory And Vehicle Floorplan Payable [Abstract] | |
Components Of Inventory | The components of inventory at December 31 are as follows: 2018 2017 New vehicles $ 2,874.8 $ 2,577.9 Used vehicles 553.8 576.5 Parts, accessories, and other 221.9 211.2 Inventory $ 3,650.5 $ 3,365.6 |
Components Of Vehicle Floorplan Payable | The components of vehicle floorplan payables at December 31 are as follows: 2018 2017 Vehicle floorplan payable - trade $ 2,388.0 $ 2,179.1 Vehicle floorplan payable - non-trade 1,609.7 1,627.8 Vehicle floorplan payable $ 3,997.7 $ 3,806.9 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | A summary of property and equipment, net, at December 31 is as follows: 2018 2017 Land $ 1,360.8 $ 1,332.5 Buildings and improvements 2,320.2 2,121.1 Furniture, fixtures, and equipment 807.1 720.2 4,488.1 4,173.8 Less: accumulated depreciation and amortization (1,332.8 ) (1,211.1 ) Property and equipment, net $ 3,155.3 $ 2,962.7 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and intangible assets, net, at December 31 consisted of the following: 2018 2017 Goodwill $ 1,513.2 $ 1,515.0 Franchise rights - indefinite-lived $ 580.1 $ 572.2 Other intangible assets 22.2 23.3 602.3 595.5 Less: accumulated amortization (6.9 ) (8.7 ) Intangible assets, net $ 595.4 $ 586.8 |
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, 2018 and 2017 were as follows: Domestic Import Premium Luxury Other Consolidated Goodwill at January 1, 2017 (1) $ 252.1 $ 558.2 $ 697.4 $ 3.6 $ 1,511.3 Acquisitions, dispositions, and other adjustments, net (2) (20.4 ) (25.8 ) 14.7 35.2 3.7 Goodwill at December 31, 2017 (1) 231.7 532.4 712.1 38.8 1,515.0 Acquisitions, dispositions, and other adjustments, net (2) 0.8 (11.5 ) 5.6 3.3 (1.8 ) Goodwill at December 31, 2018 (1) $ 232.5 $ 520.9 $ 717.7 $ 42.1 $ 1,513.2 (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. (2) |
Long-Term Debt and Commercial_2
Long-Term Debt and Commercial Paper (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Debt Disclosure [Abstract] | |
Long-term debt | Long-term debt at December 31 consisted of the following: Debt Description Maturity Date Interest Payable 2018 2017 6.75% Senior Notes April 15, 2018 April 15 and October 15 $ — $ 400.0 5.5% Senior Notes February 1, 2020 February 1 and August 1 350.0 350.0 3.35% Senior Notes January 15, 2021 January 15 and July 15 300.0 300.0 3.5% Senior Notes November 15, 2024 May 15 and November 15 450.0 450.0 4.5% Senior Notes October 1, 2025 April 1 and October 1 450.0 450.0 3.8% Senior Notes November 15, 2027 May 15 and November 15 300.0 300.0 Revolving credit facility October 19, 2022 Monthly — — Capital leases and other debt Various dates through 2038 Monthly 133.1 139.4 1,983.1 2,389.4 Less: unamortized debt discounts and debt issuance costs (12.6 ) (15.7 ) Less: current maturities (44.3 ) (414.5 ) Long-term debt, net of current maturities $ 1,926.2 $ 1,959.2 |
Aggregate maturities of non-vehicle long-term debt | At December 31, 2018 , aggregate maturities of non-vehicle long-term debt were as follows: Year Ending December 31: 2019 $ 44.3 2020 354.8 2021 304.7 2022 4.6 2023 4.8 Thereafter 1,269.9 $ 1,983.1 |
Chargeback Liability (Tables)
Chargeback Liability (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
SEC Schedule, 12-09, 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: 2018 2017 2016 Balance - January 1 $ 120.8 $ 116.8 $ 97.3 Add: Provisions 108.3 96.3 106.6 Deduct: Chargebacks (101.0 ) (92.3 ) (87.1 ) Balance - December 31 $ 128.1 $ 120.8 $ 116.8 |
Self-Insurance (Tables)
Self-Insurance (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Insurance [Abstract] | |
Current and long-term self-insurance liabilities | At December 31, 2018 and 2017 , current and long-term self-insurance liabilities were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows: 2018 2017 Self-insurance - current portion $ 29.9 $ 29.5 Self-insurance - long-term portion 47.4 48.7 Total self-insurance liabilities $ 77.3 $ 78.2 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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: 2018 2017 2016 Current: Federal $ 93.0 $ 190.6 $ 234.9 State 26.8 29.4 31.4 Federal and state deferred 10.9 (22.1 ) 3.7 Change in valuation allowance, net 3.5 3.3 0.3 Adjustments and settlements (0.7 ) 0.3 0.3 Income tax provision $ 133.5 $ 201.5 $ 270.6 |
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: 2018 % 2017 % 2016 % Income tax provision at statutory rate $ 111.2 21.0 $ 222.8 35.0 $ 245.8 35.0 Non-deductible expenses, net 4.9 0.9 5.9 0.9 4.6 0.7 State income taxes, net of federal benefit 22.8 4.3 19.7 3.1 21.7 3.1 138.9 26.2 248.4 39.0 272.1 38.8 Change in tax rate (5.0 ) (0.9 ) (44.2 ) (6.9 ) — — Change in valuation allowance, net 3.5 0.7 3.3 0.5 0.3 — Adjustments and settlements (0.7 ) (0.1 ) 0.3 0.1 0.3 — Federal and state tax credits (1.0 ) (0.2 ) (3.7 ) (0.6 ) (1.9 ) (0.3 ) Other, net (2.2 ) (0.5 ) (2.6 ) (0.4 ) (0.2 ) — Income tax provision $ 133.5 25.2 $ 201.5 31.7 $ 270.6 38.5 |
Deferred Income Tax Asset and Liability Components | Deferred income tax asset and liability components at December 31 are as follows: 2018 2017 Deferred income tax assets: Inventory $ 23.3 $ 22.8 Receivable allowances 1.4 1.9 Warranty, chargeback, and self-insurance liabilities 48.4 47.4 Other accrued liabilities 30.0 25.4 Deferred compensation 19.0 18.8 Stock-based compensation 21.2 18.9 Loss carryforwards—federal and state 7.0 6.5 Other, net 8.8 10.2 Total deferred income tax assets 159.1 151.9 Valuation allowance (8.9 ) (5.4 ) Deferred income tax assets, net of valuation allowance 150.2 146.5 Deferred income tax liabilities: Long-lived assets (intangible assets and property) (225.1 ) (207.1 ) Other, net (14.9 ) (11.3 ) Total deferred income tax liabilities (240.0 ) (218.4 ) Net deferred income tax liabilities $ (89.8 ) $ (71.9 ) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2018 2017 2016 Balance at January 1 $ 6.4 $ 5.8 $ 5.6 Additions based on tax positions related to the current year — — — Additions for tax positions of prior years 0.6 0.8 0.8 Reductions for tax positions of prior years — — (0.4 ) Reductions for expirations of statute of limitations (0.9 ) (0.2 ) (0.2 ) Settlements (1.8 ) — — Balance at December 31 $ 4.3 $ 6.4 $ 5.8 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Stockholders' Equity Note [Abstract] | |
Shares Repurchased Under Share Repurchase Program | A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows: 2018 2017 2016 Shares repurchased 2.1 10.1 10.5 Aggregate purchase price $ 100.0 $ 434.9 $ 497.0 Average purchase price per share $ 47.58 $ 42.99 $ 47.30 |
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: 2018 2017 2016 Shares issued 0.5 1.0 0.3 Proceeds from the exercise of stock options $ 17.8 $ 39.7 $ 8.4 Average exercise price per share $ 35.25 $ 37.85 $ 31.21 |
Shares Issued And Shares Surrendered To Satisfy Tax Withholdings In Connection With Restricted Stock And Restricted Stock Units | The following table presents a summary of shares of common stock issued in connection with grants of restricted stock and settlement of restricted stock units (“RSUs”), as well as shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock and settlement of RSUs: (In actual number of shares) 2018 2017 2016 Shares issued 122,661 20,000 143,424 Shares surrendered to AutoNation to satisfy tax withholding obligations 56,027 26,514 38,906 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Restricted Stock Unit Activity | The following table summarizes information about vested and nonvested RSUs for 2018 : RSUs Shares Weighted-Average Nonvested at January 1 519,609 $ 43.22 Granted (1) 670,366 $ 49.16 Vested (146,200 ) $ 45.99 Forfeited (15,243 ) $ 44.53 Nonvested at December 31 1,028,532 $ 46.69 (1) The RSUs granted during 2018 are primarily related to our employee annual equity award grant in March 2018 and non-employee director annual equity award grant in January 2018 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units Granted and Total Fair Value of Restricted Stock Units Vested | The weighted average grant-date fair value of RSUs and total fair value of RSUs vested are summarized in the following table: 2018 2017 2016 Weighted average grant-date fair value of RSUs granted $ 49.16 $ 43.66 $ 58.69 Total fair value of RSUs vested (in millions) $ 7.3 $ 2.2 $ 2.3 |
Assumptions Used Related to Valuation of Stock Options | The following table summarizes the assumptions used related to the valuation of our stock options granted during 2016 : 2016 Risk-free interest rate 1.16% - 1.55% Expected dividend yield — Expected term 4 - 7 years Expected volatility 29% - 31% |
Stock Option Activity | The following table summarizes stock option activity during 2018 : 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 3.7 $ 48.49 Granted — $ — Exercised (0.5 ) $ 35.25 Forfeited — $ — Expired (0.1 ) $ 59.75 Options outstanding as of December 31 3.1 $ 50.20 5.13 $ 2.5 Options exercisable at December 31 2.7 $ 49.34 4.78 $ 2.5 Options exercisable at December 31 and expected to vest thereafter 3.1 $ 50.23 5.08 $ 2.5 Options available for future grants at December 31 4.8 |
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: 2018 2017 2016 Weighted average grant-date fair value of stock options granted $ — $ — $ 17.96 Total intrinsic value of stock options exercised (in millions) $ 8.2 $ 11.9 $ 5.3 |
Restricted Stock Activity | The following table summarizes information about vested and nonvested restricted stock for 2018 : Restricted Stock Shares Weighted-Average Nonvested at January 1 147,931 $ 55.65 Granted — $ — Vested (68,842 ) $ 55.84 Forfeited (8,371 ) $ 56.27 Nonvested at December 31 70,718 $ 55.38 |
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: 2018 2017 2016 Weighted average grant-date fair value of restricted stock awards granted $ — $ — $ 52.23 Total fair value of restricted stock awards vested (in millions) $ 3.3 $ 4.2 $ 6.4 |
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: 2018 2017 2016 RSUs $ 21.7 $ 14.2 $ 2.3 Stock options 1.6 3.1 16.2 Restricted stock 2.2 3.3 6.6 Total stock-based compensation expense $ 25.5 $ 20.6 $ 25.1 Tax benefit related to stock-based compensation expense $ 3.0 $ 7.8 $ 9.6 |
Cash Flow Information Cash Flow
Cash Flow Information Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Supplemental Cash Flow Information [Abstract] | |
Reconciliation of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents reported on our Consolidated Balance Sheets to the total amounts reported on our Consolidated Statements of Cash Flows: Years Ended December 31, 2018 2017 Cash and cash equivalents $ 48.6 $ 69.2 Restricted cash included in Current Assets 0.8 1.9 Total cash, cash equivalents, and restricted cash $ 49.4 $ 71.1 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Summary Of Carrying Values And Fair Values Of Fixed Rate Debt | A summary of the aggregate carrying values and fair values of our fixed rate long-term debt is as follows: December 31, 2018 December 31, 2017 Carrying value $ 1,970.5 $ 2,373.7 Fair value $ 1,908.9 $ 2,442.1 |
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, 2018 and 2017 : 2018 2017 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 $ 31.7 $ (8.1 ) $ — $ — Long-lived assets held and used $ — $ (2.6 ) $ — $ (0.4 ) Long-lived assets held for sale in continuing operations $ 7.4 $ (0.6 ) $ 121.3 $ (26.0 ) |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , are as follows: Noncancelable Lease Commitments Capital Operating (1) 2019 $ 35.7 $ 61.2 2020 10.4 51.0 2021 10.1 46.1 2022 10.2 42.1 2023 10.1 36.6 Thereafter 108.7 258.4 Total minimum lease payments $ 185.2 $ 495.4 Less: Amounts representing interest (69.5 ) $ 115.7 (1) Future minimum operating lease payments do not reflect future minimum sublease income of $2.2 million . |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | The following tables provide information on revenues from external customers, segment income of our reportable segments, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures. Year Ended December 31, 2018 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,134.5 $ 6,786.4 $ 7,010.9 $ 481.0 $ 21,412.8 Floorplan interest expense $ 51.3 $ 31.0 $ 41.7 $ 6.4 $ 130.4 Depreciation and amortization $ 37.3 $ 33.2 $ 47.6 $ 48.1 $ 166.2 Segment income (loss) (1) $ 249.3 $ 304.7 $ 340.9 $ (247.4 ) $ 647.5 Capital expenditures $ 77.7 $ 56.2 $ 144.2 $ 115.5 $ 393.6 Segment assets $ 2,684.5 $ 1,934.3 $ 3,046.4 $ 2,999.9 $ 10,665.1 Year Ended December 31, 2017 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,452.8 $ 6,873.4 $ 6,832.7 $ 375.7 $ 21,534.6 Floorplan interest expense $ 40.9 $ 23.2 $ 28.4 $ 4.5 $ 97.0 Depreciation and amortization $ 38.2 $ 34.3 $ 44.5 $ 41.6 $ 158.6 Segment income (loss) (1) $ 257.1 $ 303.1 $ 348.8 $ (162.6 ) $ 746.4 Capital expenditures $ 36.2 $ 32.8 $ 101.7 $ 162.2 $ 332.9 Segment assets $ 2,563.9 $ 1,992.6 $ 2,716.8 $ 2,998.2 $ 10,271.5 Twelve Months Ended December 31, 2016 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,810.0 $ 6,886.1 $ 6,665.3 $ 247.6 $ 21,609.0 Floorplan interest expense $ 33.7 $ 17.4 $ 22.7 $ 2.7 $ 76.5 Depreciation and amortization $ 37.5 $ 35.4 $ 40.7 $ 29.8 $ 143.4 Segment income (loss) (1) $ 311.1 $ 296.8 $ 350.2 $ (145.1 ) $ 813.0 Capital expenditures $ 62.5 $ 28.0 $ 95.6 $ 67.1 $ 253.2 (1) Segment income is defined as operating income less floorplan interest expense. |
Reportable Segment Revenue | The following is a reconciliation of the total of the reportable segments’ revenue and segment income to our consolidated revenue and income from continuing operations before income taxes, respectively. Years Ended December 31, 2018 2017 2016 Total external revenues for reportable segments $ 20,931.8 $ 21,158.9 $ 21,361.4 Corporate and other revenues 481.0 375.7 247.6 Total consolidated revenues $ 21,412.8 $ 21,534.6 $ 21,609.0 |
Reportable Segment Income | Years Ended December 31, 2018 2017 2016 Total segment income for reportable segments $ 894.9 $ 909.0 $ 958.1 Corporate and other (247.4 ) (162.6 ) (145.1 ) Other interest expense (119.4 ) (120.2 ) (115.5 ) Interest income 1.1 1.0 1.1 Other income, net 0.2 9.3 3.7 Income from continuing operations before income taxes $ 529.4 $ 636.5 $ 702.3 |
Multiemployer Pension Plans (Ta
Multiemployer Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
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, 2018 , 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 2018 and 2017 is for the plan’s year end at December 31, 2017 , and December 31, 2016 , 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 2018 , 2017 , and 2016 contributions. Pension Protection Act Zone Status Contributions of AutoNation ($ in millions) (1) Expiration Date of Collective-Bargaining Agreement Pension Fund EIN/Pension PlanNumber 2018 2017 2018 2017 2016 Surcharge Imposed Automotive Industries Pension Plan 94-1133245 - 001 Red Red $ 1.4 $ 1.3 $ 1.1 Yes (2) Other funds 0.3 0.3 0.4 Total contributions $ 1.7 $ 1.6 $ 1.5 (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, 2017 or 2016 . (2) We are party to three collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. Two of the agreements have an expiration date of December 31, 2019, and one |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Organization and Business, Inventory) (Details) | 12 Months Ended |
Dec. 31, 2018brandstorefranchises | |
Product Information [Line Items] | |
Owned and operated new vehicle franchises | franchises | 326 |
Number of stores (approximate number for total locations) | 325 |
Number of brands | brand | 33 |
Percentage of new vehicle sales from core brands (percent) | 92.00% |
Dealerships [Member] | |
Product Information [Line Items] | |
Number of stores (approximate number for total locations) | 239 |
Collision Centers [Member] | |
Product Information [Line Items] | |
Number of stores (approximate number for total locations) | 85 |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Property and Equipment Net) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Reported Value Measurement [Member] | Continuing Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Assets held for sale in continuing operations | $ 67.8 | $ 169.1 |
Reported Value Measurement [Member] | Discontinued Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Assets held for sale in discontinued operations | $ 14.1 | $ 14.4 |
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 S_6
Description of Business and Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets [Line Items] | |||
Franchise agreements, minimal contractual terms (in years) | 1 year | ||
Franchise rights impairment | $ 8,100,000 | $ 0 | $ 0 |
Minimum [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Other intangibles, useful life | 3 years | ||
Maximum [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Other intangibles, useful life | 30 years | ||
Nonrecurring [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Goodwill impairment | 0 | ||
Nonrecurring [Member] | Franchise Rights [Member] | |||
Goodwill and Intangible Assets [Line Items] | |||
Franchise rights impairment | $ 8,100,000 | $ 0 | $ 0 |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies (Employee Savings Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
401(k) plan employer matching contribution | $ 14.1 | $ 7.1 | $ 6.8 |
401(k) plan matching contribution graded vesting period | 3 years | ||
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Matching contributions to employee participants | $ 1.5 | 0.7 | $ 0.7 |
Deferred compensation arrangement with individual matching contribution annual vesting years two and three | 33.00% | ||
Deferred compensation arrangement with individual matching contribution annual vesting portion, year one | 33.00% | ||
Employer discretionary contributions vesting periods (in years) | 3 years | ||
Balances due to participants | $ 78.8 | $ 78.1 |
Description of Business and S_8
Description of Business and Summary of Significant Accounting Policies (Revenue Recognition, Advertising) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Advertising [Abstract] | |||
Advertising expense, net | $ 197.8 | $ 192.8 | $ 196.7 |
Manufacturer advertising reimbursements | $ 66.1 | $ 65 | $ 58.5 |
Description of Business and S_9
Description of Business and Summary of Significant Accounting Policies Description of Business and Summary of Significant Accounting Policies (Recent Accounting Pronouncements) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect to increase retained earnings (after-tax), revenue recognition standard | $ 10.1 | ||
Consolidated Balance Sheet | |||
Receivables, net | 976.2 | $ 1,111 | |
Inventory | 3,650.5 | 3,365.6 | |
Other current assets | 208.7 | 251.7 | |
Other assets | 517.2 | 409.5 | |
Other current liabilities | 679.9 | 774.5 | |
DEFERRED INCOME TAXES | 89.8 | 71.9 | |
OTHER LIABILITIES | 275 | 235.4 | |
Retained earnings | 3,238.3 | 2,832.2 | |
Consolidated Statement of Income | |||
Revenues | 21,412.8 | 21,534.6 | $ 21,609 |
Cost of sales | 18,015.5 | 18,175.6 | 18,295.8 |
Gross profit | 3,397.3 | 3,359 | 3,313.2 |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 529.4 | 636.5 | 702.3 |
Income tax provision | 133.5 | 201.5 | 270.6 |
NET INCOME FROM CONTINUING OPERATIONS | 395.9 | 435 | 431.7 |
NET INCOME | 396 | 434.6 | 430.5 |
Consolidated Statement of Cash Flows | |||
Net income | 396 | 434.6 | 430.5 |
Deferred income tax provision | 14.5 | (19) | 3.7 |
(Increase) decrease, net of effects from business combinations and divestitures: | |||
Receivables | 133.7 | (61.6) | (99.3) |
Inventory | (319.5) | 39.3 | 259.1 |
Other assets | (107.9) | (37) | (33.6) |
Increase (decrease), net of effects from business combinations and divestitures: | |||
Other liabilities | (2) | 139.1 | 43.8 |
Accounting Standards Update 2014-09 [Member] | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect to increase retained earnings (after-tax), revenue recognition standard | 10.1 | ||
Accounting Standards Update 2016-02 [Member] | Minimum [Member] | |||
Increase (decrease), net of effects from business combinations and divestitures: | |||
Expected additional operating lease liabilities | 325 | ||
Accounting Standards Update 2016-02 [Member] | Maximum [Member] | |||
Increase (decrease), net of effects from business combinations and divestitures: | |||
Expected additional operating lease liabilities | 400 | ||
Parts and Service [Member] | |||
Consolidated Balance Sheet | |||
Inventory | 221.9 | 211.2 | |
Consolidated Statement of Income | |||
Revenues | 3,447.6 | 3,398.3 | 3,321.4 |
Cost of sales | 1,892.3 | 1,907.6 | 1,886.7 |
Gross profit | 1,555.3 | 1,490.7 | 1,434.7 |
Finance and Insurance, Net [Member] | |||
Consolidated Statement of Income | |||
Revenues | 981.4 | 939.2 | 894.6 |
Gross profit | 981.4 | $ 939.2 | $ 894.6 |
Balances without adoption of ASC Topic 606 [Member] | |||
Consolidated Balance Sheet | |||
Receivables, net | 997 | ||
Inventory | 3,655.4 | ||
Other current assets | 150.2 | ||
Other assets | 454.6 | ||
Other current liabilities | 649.3 | ||
DEFERRED INCOME TAXES | 85.1 | ||
OTHER LIABILITIES | 229.8 | ||
Retained earnings | 3,223.4 | ||
Consolidated Statement of Income | |||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 523.1 | ||
Income tax provision | 132 | ||
NET INCOME FROM CONTINUING OPERATIONS | 391.1 | ||
NET INCOME | 391.2 | ||
Consolidated Statement of Cash Flows | |||
Net income | 391.2 | ||
Deferred income tax provision | 13 | ||
(Increase) decrease, net of effects from business combinations and divestitures: | |||
Receivables | 112.9 | ||
Inventory | (319.7) | ||
Other assets | (4.8) | ||
Increase (decrease), net of effects from business combinations and divestitures: | |||
Other liabilities | (77.8) | ||
Balances without adoption of ASC Topic 606 [Member] | Parts and Service [Member] | |||
Consolidated Statement of Income | |||
Revenues | 3,447.6 | ||
Cost of sales | 1,892.4 | ||
Gross profit | 1,555.2 | ||
Balances without adoption of ASC Topic 606 [Member] | Finance and Insurance, Net [Member] | |||
Consolidated Statement of Income | |||
Revenues | 975.2 | ||
Gross profit | 975.2 | ||
Impact of adoption Higher/(Lower) [Member] | Accounting Standards Update 2014-09 [Member] | |||
Consolidated Balance Sheet | |||
Receivables, net | (20.8) | ||
Inventory | (4.9) | ||
Other current assets | 58.5 | ||
Other assets | 62.6 | ||
Other current liabilities | 30.6 | ||
DEFERRED INCOME TAXES | 4.7 | ||
OTHER LIABILITIES | 45.2 | ||
Retained earnings | 14.9 | ||
Consolidated Statement of Income | |||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 6.3 | ||
Income tax provision | 1.5 | ||
NET INCOME FROM CONTINUING OPERATIONS | 4.8 | ||
NET INCOME | 4.8 | ||
Consolidated Statement of Cash Flows | |||
Net income | 4.8 | ||
Deferred income tax provision | 1.5 | ||
(Increase) decrease, net of effects from business combinations and divestitures: | |||
Receivables | 20.8 | ||
Inventory | 0.2 | ||
Other assets | (103.1) | ||
Increase (decrease), net of effects from business combinations and divestitures: | |||
Other liabilities | 75.8 | ||
Impact of adoption Higher/(Lower) [Member] | Parts and Service [Member] | Accounting Standards Update 2014-09 [Member] | |||
Consolidated Statement of Income | |||
Revenues | 0 | ||
Cost of sales | (0.1) | ||
Gross profit | 0.1 | ||
Impact of adoption Higher/(Lower) [Member] | Finance and Insurance, Net [Member] | Accounting Standards Update 2014-09 [Member] | |||
Consolidated Statement of Income | |||
Revenues | 6.2 | ||
Gross profit | $ 6.2 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |||
Disaggregation of Revenue [Line Items] | |||||
Revenues | $ 21,412,800,000 | $ 21,534,600,000 | $ 21,609,000,000 | ||
Transferred at Point in Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 18,759,500,000 | ||||
Transferred over Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 2,653,300,000 | |||
New Vehicle [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 11,751,600,000 | 12,180,800,000 | 12,255,800,000 | ||
Used Vehicle [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 5,123,300,000 | 4,878,400,000 | 4,995,300,000 | ||
Parts and Service [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 3,447,600,000 | 3,398,300,000 | 3,321,400,000 | ||
Finance and Insurance, Net [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 981,400,000 | 939,200,000 | 894,600,000 | ||
Product and Service, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 108,900,000 | 137,900,000 | 141,900,000 | ||
AN Reportable Segment, Domestic [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 7,134,500,000 | 7,452,800,000 | 7,810,000,000 | ||
AN Reportable Segment, Domestic [Member] | Transferred at Point in Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 6,441,200,000 | ||||
AN Reportable Segment, Domestic [Member] | Transferred over Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 693,300,000 | |||
AN Reportable Segment, Domestic [Member] | New Vehicle [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 3,900,800,000 | ||||
AN Reportable Segment, Domestic [Member] | Used Vehicle [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,725,200,000 | ||||
AN Reportable Segment, Domestic [Member] | Parts and Service [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,082,800,000 | ||||
AN Reportable Segment, Domestic [Member] | Finance and Insurance, Net [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 344,400,000 | ||||
AN Reportable Segment, Domestic [Member] | Product and Service, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 81,300,000 | ||||
AN Reportable Segment, Import [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 6,786,400,000 | 6,873,400,000 | 6,886,100,000 | ||
AN Reportable Segment, Import [Member] | Transferred at Point in Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 6,079,100,000 | ||||
AN Reportable Segment, Import [Member] | Transferred over Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 707,300,000 | |||
AN Reportable Segment, Import [Member] | New Vehicle [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 4,046,400,000 | ||||
AN Reportable Segment, Import [Member] | Used Vehicle [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,418,700,000 | ||||
AN Reportable Segment, Import [Member] | Parts and Service [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 934,800,000 | ||||
AN Reportable Segment, Import [Member] | Finance and Insurance, Net [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 362,600,000 | ||||
AN Reportable Segment, Import [Member] | Product and Service, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 23,900,000 | ||||
AN Reportable Segment, Premium Luxury [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 7,010,900,000 | 6,832,700,000 | 6,665,300,000 | ||
AN Reportable Segment, Premium Luxury [Member] | Transferred at Point in Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 6,098,300,000 | ||||
AN Reportable Segment, Premium Luxury [Member] | Transferred over Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1] | 912,600,000 | |||
AN Reportable Segment, Premium Luxury [Member] | New Vehicle [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 3,804,400,000 | ||||
AN Reportable Segment, Premium Luxury [Member] | Used Vehicle [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,875,100,000 | ||||
AN Reportable Segment, Premium Luxury [Member] | Parts and Service [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 1,082,200,000 | ||||
AN Reportable Segment, Premium Luxury [Member] | Finance and Insurance, Net [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 246,000,000 | ||||
AN Reportable Segment, Premium Luxury [Member] | Product and Service, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 3,200,000 | ||||
Corporate and Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | 481,000,000 | [2] | $ 375,700,000 | $ 247,600,000 | |
Corporate and Other [Member] | Transferred at Point in Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [2] | 140,900,000 | |||
Corporate and Other [Member] | Transferred over Time [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [1],[2] | 340,100,000 | |||
Corporate and Other [Member] | New Vehicle [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [2] | 0 | |||
Corporate and Other [Member] | Used Vehicle [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [2] | 104,300,000 | |||
Corporate and Other [Member] | Parts and Service [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [2] | 347,800,000 | |||
Corporate and Other [Member] | Finance and Insurance, Net [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [2] | 28,400,000 | |||
Corporate and Other [Member] | Product and Service, Other [Member] | |||||
Disaggregation of Revenue [Line Items] | |||||
Revenues | [2] | $ 500,000 | |||
[1] | Represents revenue recognized during the period for automotive repair and maintenance services. | ||||
[2] | ?Corporate and other? is comprised of our other businesses, including collision centers, auction operations, AutoNation USA stand-alone used vehicle sales and service centers, and aftermarket collision parts businesses. |
Revenue Recognition Contract As
Revenue Recognition Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Jan. 01, 2018 | |
Revenue Recognition [Abstract] | ||
Receivables from contracts with customers, net | $ 706.7 | $ 854.3 |
Contract Asset (Current) | 28.2 | 18.4 |
Contract Asset (Long-Term) | 17.4 | 1.4 |
Contract Liability (Current) | 31.6 | 26.7 |
Contract Liability (Long-Term) | 61.9 | $ 63.8 |
Revenue amounts included in contract liability at the beginning of the period | 29.8 | |
Revenue for performance obligations satisfied in previous periods | 23.6 | |
Contract assets reclassified to receivables | $ 9.8 |
Revenue Recognition Revenue Rem
Revenue Recognition Revenue Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions | Dec. 31, 2018USD ($) |
Revenue Recognition [Abstract] | |
Revenue expected to be recognized on VCP contracts sold as of period end | $ 92.9 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-01-01 | |
Revenue Recognition [Abstract] | |
Revenue expected to be recognized on VCP contracts sold as of period end | $ 31 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-01-01 | |
Revenue Recognition [Abstract] | |
Revenue expected to be recognized on VCP contracts sold as of period end | $ 46.4 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01 | |
Revenue Recognition [Abstract] | |
Revenue expected to be recognized on VCP contracts sold as of period end | $ 15.5 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue Recognition Contract Co
Revenue Recognition Contract Costs (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Revenue Recognition [Abstract] | |
Capitalized contract cost, amortization term | 5 years |
Capitalized contract cost | $ 9.4 |
Amortization associated with capitalized costs | $ 3.2 |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Earnings Per Share [Abstract] | ||||
Net income from continuing operations | $ 395.9 | $ 435 | $ 431.7 | |
Income (loss) from discontinued operations, net of income taxes | 0.1 | (0.4) | (1.2) | |
NET INCOME | $ 396 | $ 434.6 | $ 430.5 | |
Weighted average common shares outstanding used in calculating basic EPS (in shares) | 90.9 | 97.8 | 103.1 | |
Effect of dilutive stock options and unvested RSUs (in shares) | 0.4 | 0.4 | 0.7 | |
Weighted average common shares outstanding used in calculating diluted EPS (in shares) | 91.3 | 98.2 | 103.8 | |
Basic EPS amounts | ||||
Continuing operations (in dollars per share) | [1] | $ 4.36 | $ 4.45 | $ 4.19 |
Discontinued operations (in dollars per share) | [1] | 0 | 0 | (0.01) |
Net income (in dollars per share) | [1] | 4.36 | 4.44 | 4.18 |
Diluted EPS amounts: | ||||
Continuing operations (in dollars per share) | [1] | 4.34 | 4.43 | 4.16 |
Discontinued operations (in dollars per share) | [1] | 0 | 0 | (0.01) |
Net income (in dollars per share) | [1] | $ 4.34 | $ 4.43 | $ 4.15 |
[1] | Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding. |
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, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive equity instruments excluded from the computation of diluted earnings per share (in shares) | 2.3 | 3.1 | 3 |
Receivables, Net (Components of
Receivables, Net (Components of Receivables, Net of Allowance for Doubtful Accounts) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||
Trade receivables | $ 130.4 | $ 162.6 |
Manufacturer receivables | 242.3 | 253.3 |
Other | 31.4 | 44.9 |
Trade, manufacturer and other receivables, gross | 404.1 | 460.8 |
Less: allowances for doubtful accounts | (4.6) | (5.5) |
Trade, manufacturer and other receivables, net | 399.5 | 455.3 |
Contracts-in-transit and vehicle receivables | 568.6 | 655.7 |
Income taxes receivable (See Note 11) | 8.1 | 0 |
Receivables, net | $ 976.2 | $ 1,111 |
Inventory and Vehicle Floorpl_3
Inventory and Vehicle Floorplan Payable (Components of Inventory) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Inventory [Line Items] | ||
Inventory | $ 3,650.5 | $ 3,365.6 |
New Vehicle [Member] | ||
Inventory [Line Items] | ||
Inventory | 2,874.8 | 2,577.9 |
Used Vehicle [Member] | ||
Inventory [Line Items] | ||
Inventory | 553.8 | 576.5 |
Parts and Service [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 221.9 | $ 211.2 |
Inventory and Vehicle Floorpl_4
Inventory and Vehicle Floorplan Payable (Components of Vehicle Floorplan Payable) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | $ 3,997.7 | $ 3,806.9 |
Trade [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | 2,388 | 2,179.1 |
Non-Trade [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | $ 1,609.7 | $ 1,627.8 |
Inventory and Vehicle Floorpl_5
Inventory and Vehicle Floorplan Payable (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Floorplan Payable [Line Items] | ||
Vehicle floorplan facilities, amount outstanding | $ 3,997.7 | $ 3,806.9 |
Used vehicle floorplan facilities, remaining borrowing capacity | 101.8 | |
Used vehicle floorplan facilities, current borrowing capacity | $ 0.5 | |
New Vehicle Floorplan Facilities [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan facilities, average LIBOR-based interest rates (percent) | 3.50% | 2.60% |
Vehicle floorplan facilities, maximum borrowing capacity | $ 4,800 | |
Vehicle floorplan facilities, amount outstanding | $ 3,600 | |
Used Vehicle Floorplan Facilities [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan facilities, average LIBOR-based interest rates (percent) | 3.50% | 2.50% |
Vehicle floorplan facilities, maximum borrowing capacity | $ 515 | |
Vehicle floorplan facilities, amount outstanding | $ 413.2 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 4,488.1 | $ 4,173.8 | |
Less: accumulated depreciation and amortization | (1,332.8) | (1,211.1) | |
Property and equipment, net | 3,155.3 | 2,962.7 | |
Interest costs capitalized | 1.4 | 1 | $ 0.5 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,360.8 | 1,332.5 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,320.2 | 2,121.1 | |
Furniture, fixtures, and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 807.1 | $ 720.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | [1] | $ 1,513.2 | $ 1,515 | $ 1,511.3 |
Franchise rights - indefinite-lived | 580.1 | 572.2 | ||
Other intangible assets | 22.2 | 23.3 | ||
Intangible assets, gross | 602.3 | 595.5 | ||
Less: accumulated amortization | (6.9) | (8.7) | ||
Intangible assets, net | $ 595.4 | $ 586.8 | ||
[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 $140.0 million |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | [1] | $ 1,515 | $ 1,511.3 | |
Acquisitions, dispositions, and other adjustments, net | [2] | (1.8) | 3.7 | |
Goodwill, ending balance | [1] | 1,513.2 | 1,515 | |
Accumulated impairment losses | 1,470 | 1,470 | $ 1,470 | |
Reporting Unit, Domestic [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | [1] | 231.7 | 252.1 | |
Acquisitions, dispositions, and other adjustments, net | [2] | 0.8 | (20.4) | |
Goodwill, ending balance | [1] | 232.5 | 231.7 | |
Accumulated impairment losses | 140 | 140 | $ 140 | |
Reporting Unit, Import [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | [1] | 532.4 | 558.2 | |
Acquisitions, dispositions, and other adjustments, net | [2] | (11.5) | (25.8) | |
Goodwill, ending balance | [1] | 520.9 | 532.4 | |
Reporting Unit, Premium Luxury [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | [1] | 712.1 | 697.4 | |
Acquisitions, dispositions, and other adjustments, net | [2] | 5.6 | 14.7 | |
Goodwill, ending balance | [1] | 717.7 | 712.1 | |
Reporting Unit, Other [Member] | ||||
Goodwill [Roll Forward] | ||||
Goodwill, beginning balance | [1] | 38.8 | 3.6 | |
Acquisitions, dispositions, and other adjustments, net | [2] | 3.3 | 35.2 | |
Goodwill, ending balance | [1] | $ 42.1 | $ 38.8 | |
[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 $140.0 million | |||
[2] | Includes amounts reclassified to held for sale, which are presented in Other Current Assets in our Consolidated Balance Sheet as of period end. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net (Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | $ 580.1 | $ 572.2 |
AN Reportable Segment, Domestic [Member] | ||
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | 160.5 | |
AN Reportable Segment, Import [Member] | ||
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | 108.9 | |
AN Reportable Segment, Premium Luxury [Member] | ||
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | $ 310.7 |
Long-Term Debt and Commercial_3
Long-Term Debt and Commercial Paper (Long-Term Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instruments [Abstract] | ||
Long-term debt | $ 1,983.1 | $ 2,389.4 |
Less: unamortized debt discounts and debt issuance costs | (12.6) | (15.7) |
Less: current maturities | (44.3) | (414.5) |
Long-term debt, net of current maturities | $ 1,926.2 | 1,959.2 |
Senior Notes at Six Point Seven Five Percent due 2018 [Member] | Senior Notes [Member] | ||
Debt Instruments [Abstract] | ||
Debt instrument, maturity date | Apr. 15, 2018 | |
Senior notes | $ 0 | 400 |
Percentage interest on debt instrument | 6.75% | |
Senior Notes at Five Point Five Percent Due 2020 [Member] | Senior Notes [Member] | ||
Debt Instruments [Abstract] | ||
Debt instrument, maturity date | Feb. 1, 2020 | |
Senior notes | $ 350 | 350 |
Percentage interest on debt instrument | 5.50% | |
Senior Notes at Three Point Three Five Percent Due 2021 [Member] | Senior Notes [Member] | ||
Debt Instruments [Abstract] | ||
Debt instrument, maturity date | Jan. 15, 2021 | |
Senior notes | $ 300 | 300 |
Percentage interest on debt instrument | 3.35% | |
Senior Notes at Three Point Five Percent Due 2024 [Member] | Senior Notes [Member] | ||
Debt Instruments [Abstract] | ||
Debt instrument, maturity date | Nov. 15, 2024 | |
Senior notes | $ 450 | 450 |
Percentage interest on debt instrument | 3.50% | |
Senior Notes at Four Point Five Percent Due 2025 [Member] | Senior Notes [Member] | ||
Debt Instruments [Abstract] | ||
Debt instrument, maturity date | Oct. 1, 2025 | |
Senior notes | $ 450 | 450 |
Percentage interest on debt instrument | 4.50% | |
Senior Notes at Three Point Eight Percent Due 2027 [Member] | Senior Notes [Member] | ||
Debt Instruments [Abstract] | ||
Debt instrument, maturity date | Nov. 15, 2027 | |
Senior notes | $ 300 | 300 |
Percentage interest on debt instrument | 3.80% | |
Revolving Credit Facility Due 2022 [Member] | ||
Debt Instruments [Abstract] | ||
Revolving credit facility | $ 0 | 0 |
Revolving Credit Facility Due 2022 [Member] | Line of Credit [Member] | ||
Debt Instruments [Abstract] | ||
Debt instrument, maturity date | Oct. 19, 2022 | |
Capital Leases and Other Debt [Member] | ||
Debt Instruments [Abstract] | ||
Capital leases and other debt | $ 133.1 | $ 139.4 |
Long-Term Debt and Commercial_4
Long-Term Debt and Commercial Paper (Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Maturities of Long-term Debt [Abstract] | ||
2,019 | $ 44.3 | |
2,020 | 354.8 | |
2,021 | 304.7 | |
2,022 | 4.6 | |
2,023 | 4.8 | |
Thereafter | 1,269.9 | |
Long-term debt | $ 1,983.1 | $ 2,389.4 |
Long-Term Debt and Commercial_5
Long-Term Debt and Commercial Paper (Senior Unsecured Notes and Credit Agreement) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Apr. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Debt Instrument [Line Items] | ||||
Repayment of 6.75% Senior Debt | $ 400 | $ 0 | $ 0 | |
Letters of credit, amount outstanding | 41.8 | |||
Revolving Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity under revolving credit facility | 1,800 | |||
Additional borrowing capacity under accordion feature of revolving credit facility | 500 | |||
Revolving credit facilities letter of credit sublimit | 200 | |||
Additional borrowing capacity under revolving credit facility | 1,800 | |||
Borrowing capacity limited under the maximum consolidated leverage ratio | $ 588 | |||
Leverage ratio, minimum threshold, current credit spread | 2 | |||
Leverage ratio, maximum threshold, current credit spread | 3.25 | |||
Leverage ratio, minimum threshold, increase in credit spread | 3.25 | |||
Impact on credit spread from increase in leverage ratio | 0.125% | |||
Senior Notes [Member] | Senior Notes at Three Point Three Five Percent Due 2021 [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage interest on debt instrument | 3.35% | |||
Senior Notes [Member] | Senior Notes at Three Point Five Percent Due 2024 [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage interest on debt instrument | 3.50% | |||
Senior Notes [Member] | Senior Notes at Four Point Five Percent Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage interest on debt instrument | 4.50% | |||
Senior Notes [Member] | Senior Notes at Three Point Eight Percent Due 2027 [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage interest on debt instrument | 3.80% | |||
Senior Notes [Member] | Senior Notes at Six Point Seven Five Percent due 2018 [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage interest on debt instrument | 6.75% | |||
Repayment of 6.75% Senior Debt | $ 400 | |||
Senior Notes [Member] | Senior Notes at Five Point Five Percent Due 2020 [Member] | ||||
Debt Instrument [Line Items] | ||||
Percentage interest on debt instrument | 5.50% | |||
Minimum [Member] | Revolving Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee on undrawn amounts (percent) | 0.15% | |||
Maximum [Member] | Revolving Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee on undrawn amounts (percent) | 0.25% | |||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates (percent) | 1.25% | |||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates (percent) | 1.625% | |||
Base Rate [Member] | Minimum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates (percent) | 0.25% | |||
Base Rate [Member] | Maximum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2022 [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates (percent) | 0.625% |
Long-Term Debt and Commercial_6
Long-Term Debt and Commercial Paper (Other Long-Term Debt and Commercial Paper) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Debt Instrument [Line Items] | ||
Commercial paper, maximum aggregate amount outstanding permitted | $ 1,000 | |
Commercial paper, amount outstanding | 630 | $ 330 |
Capital Leases and Other Debt [Member] | ||
Debt Instrument [Line Items] | ||
Capital leases and other debt | $ 133.1 | $ 139.4 |
Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Weighted-average annual interest rate | 3.22% | 1.97% |
Maximum [Member] | Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Maturity period of debt | 397 days | |
Weighted Average [Member] | Commercial Paper [Member] | ||
Debt Instrument [Line Items] | ||
Maturity period of debt | 21 days | 24 days |
Chargeback Liability (Details)
Chargeback Liability (Details) - Chargeback Reserves [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Chargeback liabilities, beginning balance | $ 120.8 | $ 116.8 | $ 97.3 |
Add: Provisions | 108.3 | 96.3 | 106.6 |
Deduct: Chargebacks | (101) | (92.3) | (87.1) |
Chargeback liabilities, ending balance | $ 128.1 | $ 120.8 | $ 116.8 |
Self-Insurance (Details)
Self-Insurance (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Insurance [Line Items] | ||
Self-insurance reserves - current portion | $ 679.9 | $ 774.5 |
Self-insurance reserves - long-term portion | 275 | 235.4 |
Self-insurance reserves [Member] | ||
Insurance [Line Items] | ||
Self-insurance reserves - current portion | 29.9 | 29.5 |
Self-insurance reserves - long-term portion | 47.4 | 48.7 |
Total self-insurance liabilities | $ 77.3 | $ 78.2 |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Provision From Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Current: | |||
Federal | $ 93 | $ 190.6 | $ 234.9 |
State | 26.8 | 29.4 | 31.4 |
Federal and state deferred | 10.9 | (22.1) | 3.7 |
Change in valuation allowance, net | 3.5 | 3.3 | 0.3 |
Adjustments and settlements | (0.7) | 0.3 | 0.3 |
Income tax provision | $ 133.5 | $ 201.5 | $ 270.6 |
Reconciliation of Income Tax Pr
Reconciliation of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax provision at statutory rate | $ 111.2 | $ 222.8 | $ 245.8 |
Non-deductible expenses, net | 4.9 | 5.9 | 4.6 |
State income taxes, net of federal benefit | 22.8 | 19.7 | 21.7 |
Income tax provision, excluding other reconciling items | 138.9 | 248.4 | 272.1 |
Change in tax rate | (5) | (44.2) | 0 |
Change in valuation allowance, net | 3.5 | 3.3 | 0.3 |
Adjustments and settlements | (0.7) | 0.3 | 0.3 |
Federal and state tax credits | (1) | (3.7) | (1.9) |
Other, net | (2.2) | (2.6) | (0.2) |
Income tax provision | $ 133.5 | $ 201.5 | $ 270.6 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income tax provision at statutory rate, % | 21.00% | 35.00% | 35.00% |
Non-deductible expenses, net, % | 0.90% | 0.90% | 0.70% |
State income taxes, net of federal benefit, % | 4.30% | 3.10% | 3.10% |
Income tax provision, excluding other reconciling items, % | 26.20% | 39.00% | 38.80% |
Change in tax rate, % | (0.90%) | (6.90%) | 0.00% |
Change in valuation allowance, net, % | 0.70% | 0.50% | 0.00% |
Adjustments and settlements, % | (0.10%) | 0.10% | 0.00% |
Federal and state tax credits, % | (0.20%) | (0.60%) | (0.30%) |
Other, net, % | (0.50%) | (0.40%) | 0.00% |
Income tax provision, % | 25.20% | 31.70% | 38.50% |
Income Taxes Deferred Income Ta
Income Taxes Deferred Income Tax Asset and Liability Components (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred income tax assets: | ||
Inventory | $ 23.3 | $ 22.8 |
Receivable allowances | 1.4 | 1.9 |
Warranty, chargeback, and self - insurance liabilities | 48.4 | 47.4 |
Other accrued liabilities | 30 | 25.4 |
Deferred compensation | 19 | 18.8 |
Stock-based compensation | 21.2 | 18.9 |
Loss carryforwards—federal and state | 7 | 6.5 |
Other, net | 8.8 | 10.2 |
Total deferred income tax assets | 159.1 | 151.9 |
Valuation allowance | (8.9) | (5.4) |
Deferred income tax assets, net of valuation allowance | 150.2 | 146.5 |
Deferred income tax liabilities: | ||
Long-lived assets (intangibles assets and property) | (225.1) | (207.1) |
Other, net | (14.9) | (11.3) |
Total deferred income tax liabilities | (240) | (218.4) |
Net deferred income tax liabilities | $ (89.8) | $ (71.9) |
Income Taxes Deferred Income _2
Income Taxes Deferred Income Tax Asset and Liability Components - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2018 | Dec. 31, 2017 |
Valuation Allowance [Line Items] | ||
Net deferred tax liability | $ 89.8 | $ 71.9 |
Income taxes receivable | 8.1 | 0 |
Income taxes payable | 81.1 | |
Gross domestic state net operating loss carryforwards | 91.6 | |
State tax credits | 3.3 | |
Deferred tax asset | 7 | |
Valuation allowance | 8.9 | $ 5.4 |
Deferred Tax Asset, Loss Carry Forwards | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | 4.3 | |
Deferred Tax Asset, Share-based Compensation | ||
Valuation Allowance [Line Items] | ||
Valuation allowance | $ 4.6 |
Uncrecognized Tax Benefits and
Uncrecognized Tax Benefits and Tax Reform (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | $ 6.4 | $ 5.8 | $ 5.6 |
Additions based on tax positions related to the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 0.6 | 0.8 | 0.8 |
Reductions for tax positions of prior years | 0 | 0 | (0.4) |
Reductions for expirations of statute of limitations | (0.9) | (0.2) | (0.2) |
Settlements | (1.8) | 0 | 0 |
Balance at December 31 | 4.3 | 6.4 | 5.8 |
Unrecognized tax benefits, accumulated interest and penalties | 6.6 | 6.8 | 6.1 |
Deferred tax assets related to unrecognized tax benefits | 2.4 | 2.8 | 4.2 |
Net unrecognized tax benefits, associated interest, penalties and deferred tax asset that if resolved would impact effective tax rate | 8.5 | 10.4 | 7.7 |
Recognized interest and penalties | $ 0.6 | $ 0.4 | $ 0.4 |
Income tax provision at statutory rate, % | 21.00% | 35.00% | 35.00% |
Adjustment to provisional estimate for enactment of new tax legislation, amount | $ 5 | $ 41.3 | |
Adjustment to provisional estimate for enactment of new tax legislation, impact to effective tax rate | 0.90% |
Shareholders' Equity (Share Rep
Shareholders' Equity (Share Repurchased Under Share Repurchase Program) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
Nov. 30, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Class of Stock [Line Items] | ||||
Aggregate purchase price | $ 100 | $ 434.9 | $ 497 | |
Treasury Stock, Shares, Retired | 18 | |||
Stock Repurchase Program Board Authorized Repurchases [Member] | ||||
Class of Stock [Line Items] | ||||
Shares repurchased (in shares) | 2.1 | 10.1 | 10.5 | |
Aggregate purchase price | $ 100 | $ 434.9 | $ 497 | |
Average purchase price per share (in dollars per share) | $ 47.58 | $ 42.99 | $ 47.30 | |
Remaining amount available for share repurchase | $ 263.7 |
Shareholders' Equity (Preferred
Shareholders' Equity (Preferred Stock) (Details) - $ / shares | Dec. 31, 2018 | Dec. 31, 2017 |
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 Shareholde
Shareholders' Equity Shareholders' Equity (Common Stock Issued With The Exercise Of Stock Options (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Stockholders' Equity Note [Abstract] | |||
Shares issued (in shares) | 0.5 | 1 | 0.3 |
Proceeds from the exercise of stock options | $ 17.8 | $ 39.7 | $ 8.4 |
Average exercise price per share (in dollars per share) | $ 35.25 | $ 37.85 | $ 31.21 |
Shareholders' Equity (Shares Is
Shareholders' Equity (Shares Issued And Shares Surrendered To Satisfy Tax Withholdings In Connection With Restricted Stock And Restricted Stock Units) (Details) - Restricted Stock And Restricted Stock Units [Member] - shares | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (in shares) | 122,661 | 20,000 | 143,424 |
Shares surrendered to AutoNation to satisfy tax withholding obligations (in shares) | 56,027 | 26,514 | 38,906 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | 12 Months Ended |
Dec. 31, 2018USD ($)shares | |
Employee [Member] | Employee Equity and Incentive Plan 2017 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 5,500,000 |
Director [Member] | Non-Employee Director Equity Plan 2014 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 600,000 |
Maximum aggregate grant date fair market value of awards per director for each calendar year | $ | $ 750,000 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Jan. 02, 2018 | |||
Restricted Stock Units (RSUs) [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Nonvested, shares, beginning balance | 519,609 | |||||
Nonvested, weighted-average grant date fair value, beginning balance (in dollars per share) | $ 43.22 | |||||
Granted, shares | [1] | 670,366 | ||||
Granted, weighted-average grant date fair value (in dollars per share) | $ 49.16 | [1] | $ 43.66 | $ 58.69 | ||
Vested, shares | (146,200) | |||||
Vested, weighted-average grant date fair value (in dollars per share) | $ 45.99 | |||||
Forfeited, shares | (15,243) | |||||
Forfeited, weighted-average grant date fair value (in dollars per share) | $ 44.53 | |||||
Nonvested, shares, ending balance | 1,028,532 | 519,609 | ||||
Nonvested, weighted-average grant date fair value, ending balance (in dollars per share) | $ 46.69 | $ 43.22 | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||||||
Total fair value of RSU's vested | $ 7.3 | $ 2.2 | $ 2.3 | |||
Granted, weighted-average grant date fair value (in dollars per share) | $ 49.16 | [1] | $ 43.66 | $ 58.69 | ||
Director [Member] | Restricted Stock Units (RSUs) [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 | 4,764 | |||||
Employee [Member] | Employee Equity and Incentive Plan 2017 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Measurement Period Performance-Based Restricted Stock Units | 1 year | |||||
Employee [Member] | Restricted Stock Units (RSUs) [Member] | Employee Equity and Incentive Plan 2017 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||||
Granted, shares | 600,000 | |||||
Employee [Member] | Time-based Restricted Stock Units [Member] | Employee Equity and Incentive Plan 2017 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 4 years | |||||
Employee [Member] | Performance-based Restricted Stock Units Graded Vesting [Member] | Employee Equity and Incentive Plan 2017 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 4 years | |||||
Employee [Member] | Performance-based Restricted Stock Units Cliff Vesting [Member] | Employee Equity and Incentive Plan 2017 [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Vesting period (in years) | 3 years | |||||
Measurement Period Additional Performance Metric Selected Performance-Based Restricted Stock Units | 3 years | |||||
[1] | The RSUs granted during 2018 are primarily related to our employee annual equity award grant in March 2018 and non-employee director annual equity award grant in January 2018 |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Exercised, shares | (0.5) | (1) | (0.3) |
Exercised, weighted-average exercise price (in dollars per share) | $ 35.25 | $ 37.85 | $ 31.21 |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period (in years) | 10 years | ||
Vesting period (in years) | 4 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Expected dividend rate (percentage) | 0.00% | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||
Options outstanding, beginning balance (in shares) | 3.7 | ||
Options outstanding, weighted-average exercise price, beginning balance (in dollars per share) | $ 48.49 | ||
Granted, shares | 0 | ||
Granted, weighted-average exercise price (in dollars per share) | $ 0 | ||
Exercised, shares | (0.5) | ||
Exercised, weighted-average exercise price (in dollars per share) | $ 35.25 | ||
Forfeited, shares | 0 | ||
Forfeited, weighted-average exercise price (in dollars per share) | $ 0 | ||
Expired, shares | (0.1) | ||
Expired, weighted-average exercise price (in dollars per share) | $ 59.75 | ||
Options outstanding, ending balance (in shares) | 3.1 | 3.7 | |
Options outstanding, weighted-average exercise price, ending balance (in dollars per share) | $ 50.20 | $ 48.49 | |
Options outstanding, weighted-average remaining contractual term (years) | 5 years 1 month 17 days | ||
Options outstanding, aggregate intrinsic value | $ 2.5 | ||
Options exercisable (in shares) | 2.7 | ||
Options exercisable, weighted-average exercise price (in dollars per share) | $ 49.34 | ||
Options exercisable, weighted-average remaining contractual term (years) | 4 years 9 months 10 days | ||
Options exercisable, aggregate intrinsic value | $ 2.5 | ||
Options exercisable and expected to vest thereafter (in shares) | 3.1 | ||
Options exercisable and expected to vest thereafter, weighted-average exercise price (in dollars per share) | $ 50.23 | ||
Options exercisable and expected to vest thereafter, weighted-average remaining contractual term (years) | 5 years 29 days | ||
Options exercisable and expected to vest thereafter, aggregate intrinsic value | $ 2.5 | ||
Options available for future grants (in shares) | 4.8 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | |||
Weighted average grant-date fair value of options granted (in dollars per share) | $ 0 | $ 0 | $ 17.96 |
Total intrinsic value of stock options exercised | $ 8.2 | $ 11.9 | $ 5.3 |
Minimum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate (percentage) | 1.16% | ||
Expected term (in years) | 4 years | ||
Expected volatility rate (percentage) | 29.00% | ||
Maximum [Member] | Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions and Methodology [Abstract] | |||
Risk-free interest rate (percentage) | 1.55% | ||
Expected term (in years) | 7 years | ||
Expected volatility rate (percentage) | 31.00% |
Stock-Based Compensation (Res_2
Stock-Based Compensation (Restricted Stock) (Details) - Restricted Stock [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 4 years | ||
Total fair value of restricted stock awards vested | $ 3.3 | $ 4.2 | $ 6.4 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||
Nonvested, shares, beginning balance | 147,931 | ||
Nonvested, weighted-average grant date fair value, beginning balance (in dollars per share) | $ 55.65 | ||
Granted, shares | 0 | ||
Granted, weighted-average grant date fair value (in dollars per share) | $ 0 | $ 0 | $ 52.23 |
Vested, shares | (68,842) | ||
Vested, weighted-average grant date fair value (in dollars per share) | $ 55.84 | ||
Forfeited, shares | (8,371) | ||
Forfeited, weighted-average grant date fair value (in dollars per share) | $ 56.27 | ||
Nonvested, shares, ending balance | 70,718 | 147,931 | |
Nonvested, weighted-average grant date fair value, ending balance (in dollars per share) | $ 55.38 | $ 55.65 |
Stock-Based Compensation (Compe
Stock-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | $ 25.5 | $ 20.6 | $ 25.1 |
Tax benefit related to stock-based compensation expense | 3 | 7.8 | 9.6 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 23.4 | ||
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 1 year 7 months 17 days | ||
Tax benefits related to stock options exercised and vesting of restricted stock and RSUs | $ 3.4 | 6.2 | 4.8 |
Restricted Stock Units (RSUs) [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 21.7 | 14.2 | 2.3 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | 20.9 | ||
Stock Options [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 1.6 | 3.1 | 16.2 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | 1 | ||
Restricted Stock [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation | 2.2 | $ 3.3 | $ 6.6 |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 1.5 |
Store Divestitures (Details)
Store Divestitures (Details) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017USD ($) | Dec. 31, 2018USD ($)store | Dec. 31, 2017USD ($)store | Dec. 31, 2016USD ($)store | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Gain on disposal | $ | $ 40.3 | $ 78.2 | $ 61.8 | |
Write-downs associated with pending business divestitures | $ | $ 26.2 | |||
Domestic Stores Divested [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of businesses divested | 8 | 2 | 5 | |
Import Stores Divested [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of businesses divested | 7 | 4 | 9 | |
Premium Luxury Stores Divested [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of businesses divested | 2 | |||
Collision Centers Divested [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of businesses divested | 1 |
Acquisitions (Details)
Acquisitions (Details) - store | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Collision Centers [Member] | |||
Business Acquisition [Line Items] | |||
Number of stores purchased | 7 | 1 | |
Dealerships [Member] | |||
Business Acquisition [Line Items] | |||
Number of stores purchased | 1 | 20 | |
California | Premium Luxury Dealership [Member] | |||
Business Acquisition [Line Items] | |||
Number of stores purchased | 1 | ||
Maryland | Collision Centers [Member] | |||
Business Acquisition [Line Items] | |||
Number of stores purchased | 1 | ||
Texas | Collision Centers [Member] | |||
Business Acquisition [Line Items] | |||
Number of stores purchased | 1 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 48.6 | $ 69.2 | ||
Restricted cash included in Current Assets | 0.8 | 1.9 | ||
Total cash, cash equivalents, and restricted cash | 49.4 | 71.1 | $ 65.4 | $ 78 |
Non-cash investing and financing activities related to property acquired under capital leases and other financing arrangements | 9.6 | 11.5 | ||
Capital lease and deferred purchase price related to acquisitions | 3.3 | 47.2 | ||
Accrued purchases of property and equipment | 41.3 | 48.5 | 29.1 | |
Interest payments, net of amounts capitalized and including interest on vehicle inventory financing | 245.6 | 205.9 | 183.9 | |
Income tax payments, net of income tax refunds | $ 210 | $ 127 | $ 265.5 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Summary of Carrying Values and Fair Values of Fixed Rate Debt) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Oct. 31, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Investment in equity security | $ 50 | $ 50 | $ 0 | $ 0 |
Equity security without a readily determinable fair value | 50 | |||
Fixed Rate Debt [Member] | Carrying Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed rate debt | 1,970.5 | 2,373.7 | ||
Fixed Rate Debt [Member] | Fair Value [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fixed rate debt | $ 1,908.9 | $ 2,442.1 |
Financial Instruments And Fai_4
Financial Instruments And Fair Value Measurements (Nonfinancial Assets Measured on a Nonrecurring Basis) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain/(Loss) on franchise rights | $ (8,100,000) | $ 0 | $ 0 | |
Gain/(Loss) on assets held for sale, continuing operations | $ (26,200,000) | |||
Continuing Operations [Member] | Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain/(Loss) on assets long-lived assets held and used | (2,600,000) | (400,000) | ||
Gain/(Loss) on assets held for sale, continuing operations | (600,000) | (26,000,000) | ||
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 | 0 | 0 | 0 | |
Long-lived assets held for sale in continuing operations | 121,300,000 | 7,400,000 | 121,300,000 | |
Franchise Rights [Member] | Nonrecurring [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain/(Loss) on franchise rights | (8,100,000) | 0 | $ 0 | |
Franchise Rights [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Franchise rights | $ 0 | $ 31,700,000 | $ 0 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Franchise rights impairment | $ 8,100,000 | $ 0 | $ 0 |
Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Goodwill impairment | 0 | ||
Franchise Rights [Member] | Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Franchise rights impairment | 8,100,000 | 0 | $ 0 |
Reported Value Measurement [Member] | Continuing Operations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held for sale | 67,800,000 | 169,100,000 | |
Reported Value Measurement [Member] | Discontinued Operations [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets held for sale in discontinued operations | $ 14,100,000 | $ 14,400,000 |
Commitments and Contingencies_2
Commitments and Contingencies (Lease Commitments) (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | ||
Operating and Capital Leased Assets [Line Items] [Line Items] | ||||
Expenses under real property, equipment, and sofware leases | $ 66.2 | $ 56.3 | $ 52.8 | |
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
Noncancelable Lease Commitments, Capital, 2019 | 35.7 | |||
Noncancelable Lease Commitments, Capital, 2020 | 10.4 | |||
Noncancelable Lease Commitments, Capital, 2021 | 10.1 | |||
Noncancelable Lease Commitments, Capital, 2022 | 10.2 | |||
Noncancelable Lease Commitments, Capital, 2023 | 10.1 | |||
Noncancelable Lease Commitments, Capital, Thereafter | 108.7 | |||
Noncancelable Lease Commitments, Capital, Total minimum payments | 185.2 | |||
Noncancelable Lease Commitments, Capital, Amounts representing interest | (69.5) | |||
Noncancelable Lease Commitments, Capital, Total | 115.7 | |||
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract] | ||||
Noncancelable Lease Commitments, Operating, 2019 | [1] | 61.2 | ||
Noncancelable Lease Commitments, Operating, 2020 | [1] | 51 | ||
Noncancelable Lease Commitments, Operating, 2021 | [1] | 46.1 | ||
Noncancelable Lease Commitments, Operating, 2022 | [1] | 42.1 | ||
Noncancelable Lease Commitments, Operating, 2023 | [1] | 36.6 | ||
Noncancelable Lease Commitments, Operating, Thereafter | [1] | 258.4 | ||
Noncancelable Lease Commitments, Operating, Total minimum payments | [1] | 495.4 | ||
Minimum sublease income | $ 2.2 | |||
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] | Future minimum operating lease payments do not reflect future minimum sublease income of $2.2 million . |
Commitments and Contingencies_3
Commitments and Contingencies (Other Matters) (Details) $ in Millions | Dec. 31, 2018USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure | $ 17 |
Total surety bonds, letters of credit, and cash deposits | 102.5 |
Letters of credit, amount outstanding | $ 41.8 |
Business and Credit Concentra_2
Business and Credit Concentrations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Risks and Uncertainties [Abstract] | ||
Manufacturer receivables | $ 242.3 | $ 253.3 |
Percentage Revenue from stores located in Florida, Texas, California | 62.00% |
Segment Information (Details)
Segment Information (Details) | 12 Months Ended | ||||
Dec. 31, 2018USD ($)segments | Dec. 31, 2017USD ($)segments | Dec. 31, 2016USD ($)segments | |||
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | segments | 3 | 3 | 3 | ||
Revenues | $ 21,412,800,000 | $ 21,534,600,000 | $ 21,609,000,000 | ||
Floorplan interest expense | 130,400,000 | 97,000,000 | 76,500,000 | ||
Depreciation and amortization | 166,200,000 | 158,600,000 | 143,400,000 | ||
Capital expenditures | 393,600,000 | 332,900,000 | 253,200,000 | ||
Segment assets | 10,665,100,000 | 10,271,500,000 | |||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||
Segment income (loss) | [1] | 647,500,000 | 746,400,000 | 813,000,000 | |
Other interest expense | (119,400,000) | (120,200,000) | (115,500,000) | ||
Interest income | 1,100,000 | 1,000,000 | 1,100,000 | ||
Other income, net | 200,000 | 9,300,000 | 3,700,000 | ||
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 529,400,000 | 636,500,000 | 702,300,000 | ||
AN Reportable Segments [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 20,931,800,000 | 21,158,900,000 | 21,361,400,000 | ||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||
Segment income (loss) | [1] | 894,900,000 | 909,000,000 | 958,100,000 | |
AN Reportable Segment, Domestic [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 7,134,500,000 | 7,452,800,000 | 7,810,000,000 | ||
Floorplan interest expense | 51,300,000 | 40,900,000 | 33,700,000 | ||
Depreciation and amortization | 37,300,000 | 38,200,000 | 37,500,000 | ||
Capital expenditures | 77,700,000 | 36,200,000 | 62,500,000 | ||
Segment assets | 2,684,500,000 | 2,563,900,000 | |||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||
Segment income (loss) | [1] | 249,300,000 | 257,100,000 | 311,100,000 | |
AN Reportable Segment, Import [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 6,786,400,000 | 6,873,400,000 | 6,886,100,000 | ||
Floorplan interest expense | 31,000,000 | 23,200,000 | 17,400,000 | ||
Depreciation and amortization | 33,200,000 | 34,300,000 | 35,400,000 | ||
Capital expenditures | 56,200,000 | 32,800,000 | 28,000,000 | ||
Segment assets | 1,934,300,000 | 1,992,600,000 | |||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||
Segment income (loss) | [1] | 304,700,000 | 303,100,000 | 296,800,000 | |
AN Reportable Segment, Premium Luxury [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 7,010,900,000 | 6,832,700,000 | 6,665,300,000 | ||
Floorplan interest expense | 41,700,000 | 28,400,000 | 22,700,000 | ||
Depreciation and amortization | 47,600,000 | 44,500,000 | 40,700,000 | ||
Capital expenditures | 144,200,000 | 101,700,000 | 95,600,000 | ||
Segment assets | 3,046,400,000 | 2,716,800,000 | |||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||
Segment income (loss) | [1] | 340,900,000 | 348,800,000 | 350,200,000 | |
Corporate and Other [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 481,000,000 | [2] | 375,700,000 | 247,600,000 | |
Floorplan interest expense | 6,400,000 | 4,500,000 | 2,700,000 | ||
Depreciation and amortization | 48,100,000 | 41,600,000 | 29,800,000 | ||
Capital expenditures | 115,500,000 | 162,200,000 | 67,100,000 | ||
Segment assets | 2,999,900,000 | 2,998,200,000 | |||
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | |||||
Segment income (loss) | [1] | $ (247,400,000) | $ (162,600,000) | $ (145,100,000) | |
[1] | Segment income is defined as operating income less floorplan interest expense. | ||||
[2] | ?Corporate and other? is comprised of our other businesses, including collision centers, auction operations, AutoNation USA stand-alone used vehicle sales and service centers, and aftermarket collision parts businesses. |
Multiemployer Pension Plans (De
Multiemployer Pension Plans (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2018USD ($)storeagreements | Dec. 31, 2017USD ($) | Dec. 31, 2016USD ($) | ||
Multiemployer Plans [Line Items] | ||||
Number of stores | store | 325 | |||
Total contributions | $ | [1] | $ 1.7 | $ 1.6 | $ 1.5 |
Automotive Industries Pension Plan [Member] | ||||
Multiemployer Plans [Line Items] | ||||
EIN | 941,133,245 | |||
Multiemployer plan number | 1 | |||
Pension protection act zone status | Red | Red | ||
Total contributions | $ | [1] | $ 1.4 | $ 1.3 | 1.1 |
Surcharge imposed | Yes | |||
Number of collective-bargaining arrangements that require contributions to the Plan | agreements | 3 | |||
Other funds [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Total contributions | $ | [1] | $ 0.3 | $ 0.3 | $ 0.4 |
Dealerships [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Number of stores | store | 239 | |||
Dealerships [Member] | Multiemployer Plans, Pension [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Number of stores | store | 5 | |||
Collective Bargaining Agreement, Expiration Date, December 31, 2019 [Member] | Automotive Industries Pension Plan [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Number of collective-bargaining arrangements that require contributions to the Plan | agreements | 2 | |||
Collective Bargaining Agreement, Expiration Date, December 31, 2021 [Member] | Automotive Industries Pension Plan [Member] | ||||
Multiemployer Plans [Line Items] | ||||
Number of collective-bargaining arrangements that require contributions to the Plan | agreements | 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, 2017 or 2016 |