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SEC Filings

10-Q
PENSKE AUTOMOTIVE GROUP, INC. filed this Form 10-Q on 10/26/2017
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12. Segment Information

 

Our operations are organized by management into operating segments by line of business and geography. We have determined that we have four reportable segments as defined in generally accepted accounting principles for segment reporting: (i) Retail Automotive, consisting of our retail automotive dealership operations; (ii) Retail Commercial Truck, consisting of our retail commercial truck dealership operations in the U.S. and Canada; (iii) Other, consisting of our commercial vehicle and power systems distribution operations and other non-automotive consolidated operations; and (iv) Non-Automotive Investments, consisting of our equity method investments in non-automotive operations. The Retail Automotive reportable segment includes all automotive dealerships and all departments relevant to the operation of the dealerships and our retail automotive joint ventures. The individual dealership operations included in the Retail Automotive reportable segment represent six operating segments: Eastern, Central, and Western United States, CarSense, International, and CarShop. These operating segments have been aggregated into one reportable segment as their operations (A) have similar economic characteristics (all are automotive dealerships having similar margins), (B) offer similar products and services (all sell new and/or used vehicles, service, parts and third-party finance and insurance products), (C) have similar target markets and customers (generally individuals) and (D) have similar distribution and marketing practices (all distribute products and services through dealership facilities that market to customers in similar fashions). Revenue and segment income for the three and nine months ended September 30, 2017 and 2016 follows:

 

Three Months Ended September 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

    

 

 

 

 

    

 

    

 

    

 

 

 

 

 

Retail

 

Retail Commercial

 

 

 

 

Non-Automotive

 

Intersegment 

 

 

 

 

 

 

Automotive

 

Truck

    

Other

 

Investments

 

Elimination

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

$

5,085.4

 

$

299.6

 

$

139.4

 

$

 —

 

$

 —

 

$

5,524.4

 

2016

 

 

4,772.1

 

 

266.1

 

 

114.7

 

 

 —

 

 

(0.9)

 

 

5,152.0

 

Segment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

$

94.3

 

$

11.7

 

$

2.4

 

$

30.5

 

$

 —

 

$

138.9

 

2016

 

 

97.2

 

 

8.4

 

 

0.1

 

 

24.4

 

 

 —

 

 

130.1

 

 

 

Nine Months Ended September 30

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

    

 

 

 

 

    

 

    

 

    

 

 

 

 

    

Retail

 

Retail Commercial

 

 

 

 

Non-Automotive

 

Intersegment 

 

 

 

 

 

 

Automotive

 

Truck

    

Other

 

Investments

 

Elimination

 

Total

 

Revenues

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

$

14,882.5

 

$

739.8

 

$

366.6

 

$

 —

 

$

 —

 

$

15,988.9

 

2016

 

 

14,121.8

 

 

782.3

 

 

329.2

 

 

 —

 

 

(2.6)

 

 

15,230.7

 

Segment income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

$

319.9

 

$

27.5

 

$

4.9

 

$

68.2

 

$

 —

 

$

420.5

 

2016

 

 

330.7

 

 

21.8

 

 

1.7

 

 

39.0

 

 

 —

 

 

393.2

 

 

 

 

22