| Segment Information |
14. Segment Information
As of December 31, 2014, Sonic had two operating segments: Franchised Dealerships and EchoPark®. The Franchised Dealerships segment is comprised of traditional retail automotive franchises that sell new and used vehicles, replacement parts and vehicle repair and maintenance services, and finance and insurance products. The EchoPark® segment is comprised of stand-alone pre-owned specialty retail locations that provide customers an opportunity to search, buy, service and sell their pre-owned vehicles.
The operating segments identified above are the business activities of Sonic for which discrete financial information is available and for which operating results are regularly reviewed by Sonic’s chief operating decision maker to assess operating performance and allocate resources. Sonic’s chief operating decision maker is a group consisting of the Company’s Chief Executive Officer, President and Chief Strategic Officer and the Chief Financial Officer. The Company has determined that its operating segments also represent its reportable segments.
Reportable segment revenue, segment income, floor plan interest expense, depreciation and amortization, capital expenditures and total assets are as follows:
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Year Ended December 31,
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2014
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2013
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2012
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(In thousands)
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Revenues:
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Franchised Dealerships
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$
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9,191,661
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$
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8,843,168
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$
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8,365,468
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EchoPark
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5,438
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-
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-
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Total consolidated revenues
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$
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9,197,099
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$
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8,843,168
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$
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8,365,468
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Year Ended December 31,
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2014
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2013
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2012
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(In thousands)
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Segment income (loss) (1):
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Franchised Dealerships
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$
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230,733
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$
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218,139
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$
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221,721
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EchoPark
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(15,913
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)
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(5,490
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)
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(773
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)
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Total segment income
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214,820
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212,649
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220,948
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Interest expense, other, net
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(53,190
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)
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(55,485
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)
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(60,090
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)
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Other income (expense), net
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97
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(28,143
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)
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(19,625
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)
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Income (loss) from continuing operations before taxes
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$
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161,727
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$
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129,021
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$
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141,233
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(1) Segment income (loss) for each segment is defined as operating income less floor plan interest expense
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Year Ended December 31,
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2014
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2013
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2012
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(In thousands)
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Floorplan interest expense:
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Franchised Dealerships
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$
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18,727
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$
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21,954
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$
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19,454
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EchoPark
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66
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-
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-
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Total floorplan interest expense
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$
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18,793
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$
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21,954
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$
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19,454
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Year Ended December 31,
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2014
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2013
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2012
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(In thousands)
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Depreciation and amortization:
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Franchised Dealerships
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$
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58,001
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$
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54,007
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$
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45,285
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EchoPark
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259
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-
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-
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Total depreciation and amortization
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$
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58,260
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$
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54,007
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$
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45,285
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Year Ended December 31,
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2014
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2013
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2012
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(In thousands)
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Capital expenditures:
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Franchised Dealerships
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$
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117,129
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$
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151,947
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$
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95,376
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EchoPark
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29,303
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5,670
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-
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Total capital expenditures
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$
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146,432
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$
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157,617
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$
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95,376
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December 31,
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2014
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2013
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(In thousands)
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Assets:
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Franchised Dealerships
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$
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1,841,962
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$
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1,877,433
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EchoPark
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42,115
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5,670
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Corporate and other:
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Cash and Cash Equivalents
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4,182
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3,016
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Goodwill, Net
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475,929
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476,315
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Other Intangible Assets, Net
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83,720
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87,866
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Other Corporate and other assets
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735,227
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600,870
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Total assets
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$
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3,183,135
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$
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3,051,170
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