Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.22.4
Segment Information
 12 Months Ended
Dec. 31, 2022
Segment Reporting [Abstract]  
Segment Information Segment Information
As of December 31, 2022, Sonic had three operating segments: (1) the Franchised Dealerships Segment; (2) the EchoPark Segment; and (3) the Powersports Segment. Refer to Note 1, “Description of Business and Summary of Significant Accounting Policies,” for additional discussion of our operating segments. Sonic has determined that its operating segments also represent its reportable segments.
The reportable 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: (1) the Company’s Chief Executive Officer; (2) the Company’s President; and (3) the Company’s Chief Financial Officer.
Reportable segment financial information for the three years ended December 31, 2022 were as follows:
Year Ended December 31,
2022 2021 2020
Segment Revenues: (In millions)
Franchised Dealerships Segment Revenues:
Retail new vehicles $ 5,581.6  $ 4,984.4  $ 4,224.4 
Fleet new vehicles 99.4  124.6  56.8 
Total new vehicles $ 5,681.0  $ 5,109.0  $ 4,281.2 
Used vehicles 3,391.5  2,901.0  2,345.9 
Wholesale vehicles 314.0  257.2  168.7 
Parts, service and collision repair 1,588.0  1,340.4  1,194.4 
Finance, insurance and other, net 510.1  443.5  357.8 
Franchised Dealerships Segment revenues $ 11,484.6  $ 10,051.1  $ 8,348.0 
EchoPark Segment Revenues:
Retail new vehicles $ 9.2  $ 9.0  $ — 
Used vehicles 2,116.8  2,032.6  1,258.2 
Wholesale vehicles 170.6  110.0  28.7 
Finance, insurance and other, net 166.4  193.7  132.1 
EchoPark Segment revenues $ 2,463.0  $ 2,345.3  $ 1,419.0 
Powersports Segment Revenues:
Retail new vehicles $ 31.8  $ —  $ — 
Used vehicles 7.1  —  — 
Wholesale vehicles 0.3  —  — 
Parts, service and collision repair 11.7  —  — 
Finance, insurance and other, net 2.6  —  — 
Powersports Segment revenues $ 53.5  $ —  $ — 
Total consolidated revenues $ 14,001.1  $ 12,396.4  $ 9,767.0 
Year Ended December 31,
2022 2021 2020
Segment Income (Loss) (1): (In millions)
Franchised Dealerships Segment (2) $ 641.6  $ 530.3  $ 231.2 
EchoPark Segment (3) (133.9) (72.0) 4.0 
Powersports Segment 2.7  —  — 
Total segment income (loss) $ 510.4  $ 458.3  $ 235.2 
Impairment charges (4) (320.4) (0.1) (270.0)
Income (loss) from continuing operations before taxes $ 190.0  $ 458.2  $ (34.8)

(1)Segment income (loss) for each segment is defined as income (loss) from continuing operations before taxes and impairment charges.
(2)For the year ended December 31, 2022, amount includes approximately $9.1 million of pre-tax net gain on disposal of property, plant, and equipment, partially offset by an approximately $4.4 million pre-tax net loss on long-term compensation-related expenses. For the year ended December 31, 2021, amount includes approximately $15.5 million of pre-tax net loss on the extinguishment of debt, and approximately $3.0 million of pre-tax net loss on the acquisition of franchised dealerships, partially offset by approximately $1.8 million of pre-tax net gain on the disposal of franchised dealerships. For the year ended December 31, 2020, amount includes approximately $4.0 million of pre-tax net gain on the disposal of franchised dealerships.
(3)For the year ended December 31, 2021, amount includes approximately $6.5 million of long-term compensation-related expenses. For the year ended December 31, 2020, amount includes approximately $5.2 million of pre-tax net gain on the disposal of land and buildings at former EchoPark locations.
(4)For the year ended December 31, 2022, amount includes approximately $115.5 million of pre-tax franchise asset and property and equipment impairment charges for the Franchised Dealerships Segment and $204.9 million of pre-tax goodwill and franchise asset impairment charges for the EchoPark Segment. For the year ended December 31, 2021, amount includes approximately $0.1 million of pre-tax property and equipment impairment charges for the EchoPark Segment. For the year ended December 31, 2020, amount includes approximately $270.0 million of pre-tax goodwill and property and equipment impairment charges for the Franchised Dealerships Segment.
Year Ended December 31,
2022 2021 2020
(In millions)
Impairment charges:
Franchised Dealerships Segment $ 115.5  $ —  $ 270.0 
EchoPark Segment 204.9  0.1  — 
Powersports Segment —  —  — 
Total impairment charges $ 320.4  $ 0.1  $ 270.0 

Year Ended December 31,
2022 2021 2020
(In millions)
Depreciation and amortization:
Franchised Dealerships Segment $ 101.8  $ 84.8  $ 79.9 
EchoPark Segment 24.7  16.3  11.1 
Powersports Segment 1.0  —  — 
Total depreciation and amortization $ 127.5  $ 101.1  $ 91.0 

Year Ended December 31,
2022 2021 2020
(In millions)
Floor plan interest expense:
Franchised Dealerships Segment $ 23.6  $ 11.8  $ 24.0 
EchoPark Segment 10.7  4.9  3.2 
Powersports Segment —  —  — 
Total floor plan interest expense $ 34.3  $ 16.7  $ 27.2 

Year Ended December 31,
2022 2021 2020
(In millions)
Interest expense, other, net:
Franchised Dealerships Segment $ 85.0  $ 46.3  $ 40.7 
EchoPark Segment 3.9  1.7  0.9 
Powersports Segment 1.0  —  — 
Total interest expense, other, net $ 89.9  $ 48.0  $ 41.6 
Year Ended December 31,
2022 2021 2020
(In millions)
Capital expenditures:
Franchised Dealerships Segment $ 130.3  $ 204.6  $ 92.3 
EchoPark Segment 96.6  93.6  34.9 
Powersports Segment 0.2  —  — 
Total capital expenditures $ 227.1  $ 298.2  $ 127.2 
 
December 31,
2022 2021
(In millions)
Assets:
Franchised Dealerships Segment $ 4,363.7  $ 3,934.9 
EchoPark Segment 267.6  740.6 
Powersports Segment 117.8  — 
Corporate and other:
Cash and cash equivalents 229.2  299.4 
Other corporate assets —  0.2 
Total assets $ 4,978.3  $ 4,975.1