| Segment Information |
14. Segment Information
As of December 31, 2016, 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 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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2016
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2015
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2014
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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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9,602,562
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$
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9,547,236
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$
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9,191,661
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EchoPark®
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129,217
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77,063
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5,438
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Total consolidated revenues
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$
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9,731,779
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$
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9,624,299
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$
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9,197,099
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Year Ended December 31,
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2016
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2015
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2014
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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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217,306
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$
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213,224
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$
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230,733
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EchoPark®
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(12,113
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)
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(17,257
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)
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(15,913
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)
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Total segment income (loss)
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205,193
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195,967
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214,820
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Interest expense, other, net
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(50,106
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)
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(50,910
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)
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(53,190
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)
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Other income (expense), net
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125
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|
99
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97
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Income (loss) from continuing operations before taxes
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$
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155,212
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$
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145,156
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$
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161,727
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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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2016
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2015
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2014
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(In thousands)
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Floor plan interest expense:
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Franchised Dealerships
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$
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26,777
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$
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20,727
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$
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18,727
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EchoPark®
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939
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599
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66
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Total floor plan interest expense
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$
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27,716
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$
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21,326
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$
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18,793
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Year Ended December 31,
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2016
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2015
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2014
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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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73,635
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$
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65,766
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$
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58,001
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EchoPark®
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3,811
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3,033
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|
259
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Total depreciation and amortization
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$
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77,446
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$
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68,799
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$
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58,260
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Year Ended December 31,
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2016
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2015
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2014
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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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170,876
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$
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148,593
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$
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117,129
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EchoPark®
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35,356
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24,656
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29,303
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Total capital expenditures
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$
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206,232
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$
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173,249
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$
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146,432
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December 31,
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2016
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2015
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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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2,095,777
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$
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2,211,232
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EchoPark®
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128,125
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76,808
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Corporate and other:
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Cash and Cash Equivalents
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3,108
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3,625
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Goodwill, Net
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472,437
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471,493
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Other Intangible Assets, Net
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80,233
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80,876
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Other Corporate and other assets
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859,656
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718,347
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Total assets
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$
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3,639,336
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$
|
3,562,381
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