Annual report pursuant to Section 13 and 15(d)

Segment Information

v3.24.0.1
Segment Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment Information Segment Information
As of December 31, 2023, 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, 2023 were as follows:
Year Ended December 31,
2023 2022 2021
Segment Revenues: (In millions)
Franchised Dealerships Segment Revenues:
Retail new vehicles $ 6,215.0  $ 5,581.6  $ 4,984.4 
Fleet new vehicles 92.2  99.4  124.6 
Total new vehicles $ 6,307.2  $ 5,681.0  $ 5,109.0 
Used vehicles 3,050.3  3,391.5  2,901.0 
Wholesale vehicles 204.5  314.0  257.2 
Parts, service and collision repair 1,714.2  1,588.0  1,340.4 
Finance, insurance and other, net 498.6  510.1  443.5 
Franchised Dealerships Segment revenues $ 11,774.8  $ 11,484.6  $ 10,051.1 
EchoPark Segment Revenues:
Retail new vehicles $ 1.0  $ 9.2  $ 9.0 
Used vehicles 2,143.8  2,116.8  2,032.6 
Wholesale vehicles 111.7  170.6  110.0 
Finance, insurance and other, net 177.9  166.4  193.7 
EchoPark Segment revenues $ 2,434.4  $ 2,463.0  $ 2,345.3 
Powersports Segment Revenues:
Retail new vehicles $ 88.6  $ 31.8  $ — 
Used vehicles 19.5  7.1  — 
Wholesale vehicles 2.6  0.3  — 
Parts, service and collision repair 45.3  11.7  — 
Finance, insurance and other, net 7.2  2.6  — 
Powersports Segment revenues $ 163.2  $ 53.5  $ — 
Total consolidated revenues $ 14,372.4  $ 14,001.1  $ 12,396.4 
Year Ended December 31,
2023 2022 2021
Segment Income (Loss) (1): (In millions)
Franchised Dealerships Segment (2) $ 448.0  $ 641.6  $ 530.3 
EchoPark Segment (3) (132.5) (133.9) (72.0)
Powersports Segment 5.7  2.7  — 
Total segment income (loss) $ 321.2  $ 510.4  $ 458.3 
Impairment charges (4) (79.3) (320.4) (0.1)
Income (loss) before taxes $ 241.9  $ 190.0  $ 458.2 

(1)Segment income (loss) for each segment is defined as income (loss) before taxes and impairment charges.
(2)For the year ended December 31, 2023, amount includes approximately $20.9 million of pre-tax gain net gain on the disposal of franchised dealerships, partially offset by a $1.9 million pre-tax net loss related to property damage. 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 charge for long-term compensation expense. 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 $1.8 million of pre-tax net gain on the disposal of franchised dealerships.
(3)For the year ended December 31, 2023, amount includes approximately $19.7 million of pre-tax net loss primarily related to the indefinite suspension of operations at certain EchoPark locations that occurred in the second and third quarter of 2023. For the year ended December 31, 2021, amount includes approximately $6.5 million of long-term compensation-related expenses.
(4)For the year ended December 31, 2023, amount includes approximately $1.0 million of pre-tax property and equipment impairment charges for the Franchised Dealerships Segment and $78.3 million of pre-tax impairment charges related to property and equipment, lease right-of-use assets, and other assets for the EchoPark Segment. 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.
Year Ended December 31,
2023 2022 2021
(In millions)
Impairment charges:
Franchised Dealerships Segment $ 1.0  $ 115.5  $ — 
EchoPark Segment 78.3  204.9  0.1 
Powersports Segment —  —  — 
Total impairment charges $ 79.3  $ 320.4  $ 0.1 

Year Ended December 31,
2023 2022 2021
(In millions)
Depreciation and amortization:
Franchised Dealerships Segment $ 112.3  $ 101.8  $ 84.8 
EchoPark Segment 26.6  24.7  16.3 
Powersports Segment 3.4  1.0  — 
Total depreciation and amortization $ 142.3  $ 127.5  $ 101.1 

Year Ended December 31,
2023 2022 2021
(In millions)
Floor plan interest expense:
Franchised Dealerships Segment $ 49.2  $ 23.6  $ 11.8 
EchoPark Segment 17.4  10.7  4.9 
Powersports Segment 0.6  —  — 
Total floor plan interest expense $ 67.2  $ 34.3  $ 16.7 
Year Ended December 31,
2023 2022 2021
(In millions)
Interest expense, other, net:
Franchised Dealerships Segment $ 109.7  $ 85.0  $ 46.3 
EchoPark Segment 3.2  3.9  1.7 
Powersports Segment 1.7  1.0  — 
Total interest expense, other, net $ 114.6  $ 89.9  $ 48.0 

Year Ended December 31,
2023 2022 2021
(In millions)
Capital expenditures:
Franchised Dealerships Segment $ 181.4  $ 130.3  $ 204.6 
EchoPark Segment 15.3  96.6  93.6 
Powersports Segment 6.9  0.2  — 
Total capital expenditures $ 203.6  $ 227.1  $ 298.2 
 
December 31,
2023 2022
(In millions)
Assets:
Franchised Dealerships Segment $ 4,455.8  $ 4,363.7 
EchoPark Segment 667.9  267.6 
Powersports Segment 212.0  117.8 
Corporate and other:
Cash and cash equivalents 28.9  229.2 
Total assets $ 5,364.6  $ 4,978.3