Quarterly report pursuant to Section 13 or 15(d)

Segment Information

v3.7.0.1
Segment Information
 3 Months Ended
Mar. 31, 2017
Segment Reporting [Abstract]  
Segment Information

11. Segment Information

 

As of March 31, 2017, Sonic had two operating segments: Franchised Dealerships and EchoPark. The Franchised Dealerships segment is comprised of retail automotive franchises that sell new vehicles and buy and sell used vehicles, sell replacement parts, perform vehicle repair and maintenance services, and arrange finance and insurance products. The EchoPark segment is comprised of stand-alone specialty retail locations that provide customers an opportunity to search, buy, service, finance and sell 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 of three individuals consisting of the Company’s Chief Executive Officer and President, Executive Vice President and Chief Financial Officer, and Executive Vice President of Operations. The Company has determined that its operating segments also represent its reportable segments.

 

Reportable segment revenues and segment income (loss) are as follows:

 

 

 

Three Months Ended March 31,

 

 

 

2017

 

 

2016

 

 

 

(In thousands)

 

Revenues:

 

 

 

 

 

 

 

 

Franchised Dealerships

 

$

2,246,025

 

 

$

2,210,586

 

EchoPark

 

 

41,797

 

 

 

24,040

 

Total consolidated revenues

 

$

2,287,822

 

 

$

2,234,626

 

 

 

 

Three Months Ended March 31,

 

 

 

2017

 

 

2016

 

 

 

(In thousands)

 

Segment income (loss) (1):

 

 

 

 

 

 

 

 

Franchised Dealerships

 

$

33,470

 

 

$

39,292

 

EchoPark

 

 

(5,408

)

 

 

(3,423

)

Total segment income (loss)

 

 

28,062

 

 

 

35,869

 

Interest expense, other, net

 

 

(13,409

)

 

 

(12,339

)

Other income (expense), net

 

 

(14,501

)

 

 

104

 

Income (loss) from continuing operations before taxes

 

$

152

 

 

$

23,634

 

 

(1)

Segment income (loss) for each segment is defined as operating income (loss) less interest expense, floor plan.