Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2023 | Feb. 14, 2024 | Jun. 30, 2023 | |
Document And Entity Information [Abstract] | |||
Document Annual Report | true | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2023 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2023 | ||
Document Transition Report | false | ||
Entity Central Index Key | 0000350698 | ||
Entity File Number | 1-13107 | ||
Entity Registrant Name | AUTONATION, INC. | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 73-1105145 | ||
Entity Address, Address Line One | 200 SW 1st Ave | ||
Entity Address, City or Town | Fort Lauderdale | ||
Entity Address, State or Province | FL | ||
Entity Address, Postal Zip Code | 33301 | ||
Amendment Flag | false | ||
City Area Code | (954) | ||
Local Phone Number | 769-6000 | ||
Title of 12(b) Security | Common Stock, Par Value $0.01 Per Share | ||
Trading Symbol | AN | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.7 | ||
Entity Common Stock, Shares Outstanding | 41,660,637 | ||
Documents Incorporated by Reference | Portions of the registrant’s Proxy Statement relating to its 2024 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2023, are incorporated herein by reference in Part III. | ||
Auditor Name | KPMG LLP | ||
Auditor Location | Fort Lauderdale, FL | ||
Auditor Firm ID | 185 | ||
Document Financial Statement Error Correction [Flag] | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
CURRENT ASSETS: | ||
Cash and cash equivalents | $ 60.8 | $ 72.6 |
Receivables, net of allowance for credit losses of $2.1 million and $1.7 million, respectively | 1,040.4 | 858.8 |
Inventory | 3,033.4 | 2,048.3 |
Other current assets | 172.3 | 158.3 |
Total Current Assets | 4,306.9 | 3,138 |
AUTO LOANS RECEIVABLE, net of allowance for credit losses of $46.3 million and $57.5 million, respectively | 402.4 | 303.1 |
PROPERTY AND EQUIPMENT, NET | 3,791.6 | 3,607.2 |
OPERATING LEASE ASSETS | 392.1 | 323.5 |
GOODWILL | 1,465.8 | 1,320.1 |
OTHER INTANGIBLE ASSETS, NET | 927.8 | 837 |
OTHER ASSETS | 693.4 | 530.8 |
Total Assets | 11,980 | 10,059.7 |
CURRENT LIABILITIES: | ||
Vehicle floorplan payable | 3,382.4 | 2,109.3 |
Accounts payable | 344.7 | 327.6 |
Commercial paper | 440 | 50 |
Current maturities of long-term debt | 462.4 | 12.6 |
Current portion of non-recourse debt | 8.8 | 10.7 |
Accrued payroll and benefits | 239 | 238 |
Other current liabilities | 705.2 | 657.5 |
Total Current Liabilities | 5,582.5 | 3,405.7 |
LONG-TERM DEBT, NET OF CURRENT MATURITIES | 3,127.9 | 3,586.9 |
NON-RECOURSE DEBT, NET OF CURRENT PORTION | 249.6 | 312.9 |
NONCURRENT OPERATING LEASE LIABILITIES | 363.2 | 296.9 |
DEFERRED INCOME TAXES | 85 | 76.5 |
OTHER LIABILITIES | 360.4 | 333 |
COMMITMENTS AND CONTINGENCIES (Note 20) | ||
SHAREHOLDERS' EQUITY: | ||
Common stock, par value $0.01 per share; 1,500,000,000 shares authorized; 63,562,149 shares issued at December 31, 2023, and 63,562,149 shares issued at December 31, 2022, including shares held in treasury | 0.6 | 0.6 |
Additional paid-in capital | 22.4 | 3.1 |
Retained earnings | 4,643 | 3,663.7 |
Treasury stock, at cost; 21,917,635 and 15,915,358 shares held, respectively | (2,454.6) | (1,619.6) |
Total Shareholders’ Equity | 2,211.4 | 2,047.8 |
Total Liabilities and Shareholders’ Equity | 11,980 | 10,059.7 |
Trade [Member] | ||
CURRENT LIABILITIES: | ||
Vehicle floorplan payable | 1,760 | 946.6 |
Non-Trade [Member] | ||
CURRENT LIABILITIES: | ||
Vehicle floorplan payable | $ 1,622.4 | $ 1,162.7 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Revenue: | ||||
TOTAL REVENUE | $ 26,948.9 | $ 26,985 | $ 25,844 | |
Cost of Sales: | ||||
TOTAL COST OF SALES | 21,817.4 | 21,719.7 | 20,891.4 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | 5,131.5 | 5,265.3 | 4,952.6 | |
Selling, general, and administrative expenses | 3,253.2 | 3,026.1 | 2,876.2 | |
Depreciation and amortization | 220.5 | 200.3 | 193.3 | |
Other (income) expense, net | 5.9 | 14.4 | (19.7) | |
OPERATING INCOME | 1,651.9 | 2,024.5 | 1,902.8 | |
Non-operating income (expense) items: | ||||
Floorplan interest expense | (144.7) | (41.4) | (25.7) | |
Other interest expense | (181.4) | (134.9) | (93) | |
Other income (loss), net | 24.4 | (14.7) | 24.3 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 1,350.2 | 1,833.5 | 1,808.4 | |
Income tax provision | 330 | 455.8 | 435.1 | |
NET INCOME FROM CONTINUING OPERATIONS | 1,020.2 | 1,377.7 | 1,373.3 | |
Income (loss) from discontinued operations, net of income taxes | 0.9 | (0.3) | (0.3) | |
NET INCOME | $ 1,021.1 | $ 1,377.4 | $ 1,373 | |
BASIC EARNINGS (LOSS) PER SHARE: | ||||
Continuing operations (in dollars per share) | [1] | $ 22.87 | $ 24.47 | $ 18.51 |
Discontinued operations (in dollars per share) | [1] | 0.02 | (0.01) | 0 |
Net income (in dollars per share) | [1] | $ 22.89 | $ 24.47 | $ 18.50 |
Weighted average common shares outstanding, basic (in shares) | 44.6 | 56.3 | 74.2 | |
DILUTED EARNINGS (LOSS) PER SHARE: | ||||
Continuing operations (in dollars per share) | [1] | $ 22.72 | $ 24.30 | $ 18.31 |
Discontinued operations (in dollars per share) | [1] | 0.02 | (0.01) | 0 |
Net income (in dollars per share) | [1] | $ 22.74 | $ 24.29 | $ 18.31 |
Weighted average common shares outstanding (in shares) | 44.9 | 56.7 | 75 | |
COMMON SHARES OUTSTANDING, net of treasury stock, at period end (in shares) | 41.6 | 47.6 | 62.6 | |
New Vehicle [Member] | ||||
Revenue: | ||||
TOTAL REVENUE | $ 12,767.4 | $ 11,754.4 | $ 12,081.7 | |
Cost of Sales: | ||||
TOTAL COST OF SALES | 11,705.6 | 10,387.8 | 10,880.1 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | 1,061.8 | 1,366.6 | 1,201.6 | |
Used Vehicle [Member] | ||||
Revenue: | ||||
TOTAL REVENUE | 8,198.5 | 9,661.8 | 8,638.8 | |
Cost of Sales: | ||||
TOTAL COST OF SALES | 7,690.5 | 9,108.7 | 7,950.7 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | 508 | 553.1 | 688.1 | |
Parts and Service [Member] | ||||
Revenue: | ||||
TOTAL REVENUE | 4,533.7 | 4,100.6 | 3,706.6 | |
Cost of Sales: | ||||
TOTAL COST OF SALES | 2,394.4 | 2,200.3 | 2,033.9 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | 2,139.3 | 1,900.3 | 1,672.7 | |
Finance and Insurance, Net [Member] | ||||
Revenue: | ||||
TOTAL REVENUE | 1,418.8 | 1,437.3 | 1,384.5 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | 1,418.8 | 1,437.3 | 1,384.5 | |
Product and Service, Other [Member] | ||||
Revenue: | ||||
TOTAL REVENUE | 30.5 | 30.9 | 32.4 | |
Cost of Sales: | ||||
TOTAL COST OF SALES | 26.9 | 22.9 | 26.7 | |
Gross Profit: | ||||
TOTAL GROSS PROFIT | $ 3.6 | $ 8 | $ 5.7 | |
[1] (1) EPS amounts are calculated discretely and, therefore, may not add up to the total due to rounding. |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-In Capital [Member] | Retained Earnings [Member] | Treasury Stock, Common |
BALANCE, Shares at Dec. 31, 2020 | 102,562,149 | ||||
BALANCE, Amount at Dec. 31, 2020 | $ 3,235.7 | $ 1 | $ 53.1 | $ 4,069.4 | $ (887.8) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,373 | 1,373 | |||
Repurchases of common stock | (2,303.2) | (2,303.2) | |||
Treasury stock cancellation, Shares | (16,000,000) | ||||
Treasury stock cancellation | 0 | $ (0.2) | (40.6) | (797.2) | 838 |
Stock-based compensation expense | 35 | 35 | |||
Shares awarded under stock-based compensation plans, net of shares withheld for taxes | 36.5 | (44.3) | (5.3) | 86.1 | |
BALANCE, Shares at Dec. 31, 2021 | 86,562,149 | ||||
BALANCE, Amount at Dec. 31, 2021 | 2,377 | $ 0.8 | 3.2 | 4,639.9 | (2,266.9) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,377.4 | 1,377.4 | |||
Repurchases of common stock | (1,710.2) | (1,710.2) | |||
Treasury stock cancellation, Shares | (23,000,000) | ||||
Treasury stock cancellation | 0 | $ (0.2) | (7.8) | (2,295.5) | 2,303.5 |
Stock-based compensation expense | 31.5 | 31.5 | |||
Shares awarded under stock-based compensation plans, net of shares withheld for taxes | (27.9) | (23.8) | (58.1) | 54 | |
BALANCE, Shares at Dec. 31, 2022 | 63,562,149 | ||||
BALANCE, Amount at Dec. 31, 2022 | 2,047.8 | $ 0.6 | 3.1 | 3,663.7 | (1,619.6) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 1,021.1 | 1,021.1 | |||
Repurchases of common stock | (871.7) | (871.7) | |||
Stock-based compensation expense | 39.7 | 39.7 | |||
Shares awarded under stock-based compensation plans, net of shares withheld for taxes | (25.5) | (20.4) | (41.8) | 36.7 | |
BALANCE, Shares at Dec. 31, 2023 | 63,562,149 | ||||
BALANCE, Amount at Dec. 31, 2023 | $ 2,211.4 | $ 0.6 | $ 22.4 | $ 4,643 | $ (2,454.6) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES: | ||||
Net income | $ 1,021.1 | $ 1,377.4 | $ 1,373 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Loss (income) from discontinued operations | (0.9) | 0.3 | 0.3 | |
Depreciation and amortization | 220.5 | 200.3 | 193.3 | |
Amortization of debt issuance costs and accretion of debt discounts | 9.6 | 7.2 | 4.9 | |
Stock-based compensation expense | 39.7 | 31.5 | 35 | |
Provision for credit losses on auto loans receivable | 45.9 | 43.8 | [1] | 0 |
Deferred income tax provision (benefit) | 20.1 | 1.3 | (17.4) | |
Net gain related to business/property dispositions | (9.1) | (16.3) | (18.1) | |
Gain on equity investments | (5.2) | (2.9) | (10.9) | |
Loss (gain) on corporate-owned life insurance asset | (16.4) | 19.4 | (12.7) | |
Gain on sale of auto loans receivable | (8.1) | 0 | 0 | |
Other | 6.4 | 1.6 | 2.6 | |
(Increase) decrease, net of effects from business acquisitions and divestitures: | ||||
Receivables | (178.2) | (129.2) | 114.9 | |
Auto loans receivable, net | (229.9) | 0 | 0 | |
Inventory | (950.1) | (175.5) | 800.4 | |
Other assets | (84.2) | (58.4) | 92.2 | |
Increase (decrease), net of effects from business acquisitions and divestitures: | ||||
Vehicle floorplan payable-trade | 813.4 | 461.1 | (1,059.7) | |
Accounts payable | 8.1 | (68.9) | 57.2 | |
Other liabilities | 21.6 | (24.3) | 73 | |
Net cash provided by continuing operations | 724.3 | 1,668.4 | 1,628 | |
Net cash used in discontinued operations | (0.3) | (0.3) | (0.3) | |
Net cash provided by operating activities | 724 | 1,668.1 | 1,627.7 | |
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES: | ||||
Purchases of property and equipment | (410.3) | (329) | (215.7) | |
Proceeds from the disposal of assets held for sale | 7.9 | 22.8 | 37.1 | |
Cash used in business acquisitions, net of cash acquired | (271.4) | (191.6) | (432.7) | |
Cash received from business divestitures, net of cash relinquished | 23.2 | 55.2 | 48.7 | |
Originations of auto loans receivable acquired through third-party dealers | (110.9) | (56) | 0 | |
Collections on auto loans receivable acquired through third-party dealers | 135 | 36.4 | 0 | |
Proceeds from the sale of auto loans receivable | 68.7 | 0 | 0 | |
Proceeds from the sale of equity securities | 1.4 | 1.8 | 109.4 | |
Investment in equity securities | 0 | (12) | (5.5) | |
Other | (13.5) | (6.9) | (1.6) | |
Net cash used in continuing operations | (569.9) | (479.3) | (460.3) | |
Net cash used in discontinued operations | 0 | 0 | 0 | |
Net cash used in investing activities | (569.9) | (479.3) | (460.3) | |
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||
Repurchases of common stock | (874.4) | (1,699.5) | (2,318.2) | |
Net proceeds from (payments of) commercial paper | 390 | (290) | 340 | |
Proceeds from non-recourse debt | 324 | 40.7 | 0 | |
Payments of non-recourse debt | (392.7) | (35.6) | 0 | |
Payment of debt issuance costs | (6.6) | (7.1) | (8) | |
Net proceeds from (payments of) vehicle floorplan payable - non-trade | 425.3 | 178.6 | (263.9) | |
Payment of other debt obligations | (12.6) | (12) | (10.9) | |
Proceeds from the exercise of stock options | 1.9 | 3.4 | 54.5 | |
Payments of tax withholdings for stock-based awards | (27.4) | (31.3) | (18) | |
Net cash used in continuing operations | (172.5) | (1,154) | (1,676.5) | |
Net cash used in discontinued operations | 0 | 0 | 0 | |
Net cash used in financing activities | (172.5) | (1,154) | (1,676.5) | |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (18.4) | 34.8 | (509.1) | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at beginning of year | 95.4 | 60.6 | 569.7 | |
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at end of year | 77 | 95.4 | 60.6 | |
Senior Notes at Three Point Eight Five Percent Due 2032 [Member] | ||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||
Proceeds from Senior Notes | 0 | 698.8 | 0 | |
Senior Notes at One Point Nine Five Percent Due 2028 [Member] | ||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||
Proceeds from Senior Notes | 0 | 0 | 399.2 | |
Senior Notes at Two Point Four Percent Due 2031 [Member] | ||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||
Proceeds from Senior Notes | 0 | 0 | 448.8 | |
Senior Notes at Three Point Three Five Percent Due 2021 | ||||
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES: | ||||
Payment of Senior Notes | $ 0 | $ 0 | $ (300) | |
[1] (1) Reflects activity that occurred after the acquisition of CIG Financial on October 1, 2022. Provision for credit losses includes initial credit loss expense of $34.2 million associated with the auto loan portfolio acquired as part of the acquisition. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Accounts Receivable, allowance for credit losses | $ 2.1 | $ 1.7 |
Auto loans receivable, allowance for credit losses | $ 46.3 | $ 57.5 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock authorized (in shares) | 1,500,000,000 | 1,500,000,000 |
Common stock issued (in shares) | 63,562,149 | 63,562,149 |
Treasury Stock, Common, Shares | 21,917,635 | 15,915,358 |
Cash Flow Information
Cash Flow Information | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Cash Flow Information | CASH FLOW INFORMATION Cash, Cash Equivalents, and Restricted Cash The total amounts presented on our statements of cash flows include cash, cash equivalents, and restricted cash. Restricted cash includes additional collateral for non-recourse debt borrowings and collections on auto loans receivable that are due to be distributed to non-recourse debt holders in the following period. The following table provides a reconciliation of cash and cash equivalents reported on our Consolidated Balance Sheets to the total amounts reported on our Consolidated Statements of Cash Flows: Years Ended December 31, 2023 2022 Cash and cash equivalents $ 60.8 $ 72.6 Restricted cash included in Other Current Assets 14.3 15.6 Restricted cash included in Other Assets 1.9 7.2 Total cash, cash equivalents, and restricted cash $ 77.0 $ 95.4 Non-Cash Investing and Financing Activities We had accrued purchases of property and equipment of $38.7 million at December 31, 2023, $33.0 million at December 31, 2022, and $25.9 million at December 31, 2021. Interest and Income Taxes Paid We made interest payments, net of amounts capitalized and including interest on vehicle inventory financing, of $310.3 million in 2023, $153.7 million in 2022, and $113.9 million in 2021. We made income tax payments, net of income tax refunds, of $300.8 million in 2023, $482.5 million in 2022, and $458.3 million in 2021. |
Description of Business and Sum
Description of Business and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business and Summary of Significant Accounting Policies | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Business AutoNation, Inc., through its subsidiaries, is one of the largest automotive retailers in the United States. As of December 31, 2023, we owned and operated 349 new vehicle franchises from 252 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores sell 34 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2023, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche). As of December 31, 2023, we also owned and operated 53 AutoNation-branded collision centers, 19 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, 3 parts distribution centers, a mobile automotive repair and maintenance business, and an auto finance company. We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service” (also referred to as “After-Sales”), which includes automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products (also referred to as “Customer Financial Services”), which include vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. We also offer indirect financing on certain vehicles we sell through our captive finance company. For convenience, the terms “AutoNation,” “Company,” and “we” are used to refer collectively to AutoNation, Inc. and its subsidiaries, unless otherwise required by the context. Our store and other operations are conducted by our subsidiaries. Basis of Presentation The accompanying Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries. All of our automotive dealership subsidiaries are indirectly wholly owned by the parent company, AutoNation, Inc. Intercompany accounts and transactions have been eliminated in the consolidation. Use of Estimates The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ materially from these estimates. We periodically evaluate estimates and assumptions used in the preparation of the financial statements and make changes on a prospective basis when adjustments are necessary. Such estimates and assumptions affect, among other things, our goodwill, indefinite-lived intangible asset, and long-lived asset valuations; inventory valuation; equity investment valuation; assets held for sale; assessments of variable consideration and related constraints associated with retrospective commissions; accruals for chargebacks against revenue recognized from the sale of finance and insurance products; accruals related to self-insurance programs; the allowance for expected credit losses; certain legal proceedings; assessment of the annual income tax expense; deferred income taxes and income tax contingencies; and measurement of performance-based compensation costs. Cash and Cash Equivalents We consider all highly liquid investments with a maturity of three months or less as of the date of purchase to be cash equivalents unless the investments are legally or contractually restricted for more than three months. Under our cash management system, outstanding checks that are in excess of the cash balances at certain banks are included in Accounts Payable in the Consolidated Balance Sheets and changes in these amounts are reflected in operating cash flows in the accompanying Consolidated Statements of Cash Flows. Auto Loans Receivable Auto loans receivable include amounts due from customers related to retail vehicle sales financed through our captive auto finance company, as well as retail vehicle installment sales contracts acquired through third-party independent dealers prior to October 2023. Auto loans receivable are presented net of an allowance for expected credit losses. See Note 5 of the Notes to Consolidated Financial Statements for additional information on our significant accounting policies related to auto loans receivable and the allowance for expected credit losses. Financing and Securitization Transactions Through wholly-owned, bankruptcy-remote, special purpose entities, we utilize warehouse facilities to fund auto loans receivable originated by our auto finance company. We also have term securitizations that were put in place prior to our acquisition of our captive auto finance company to provide long-term funding for certain auto loans receivable initially funded through the warehouse facilities. In these transactions, a pool of auto loans receivable is sold to a bankruptcy-remote, special purpose entity that, in turn, transfers the receivables to a special purpose securitization trust. The securitization trust issues asset-backed securities, secured or otherwise supported by the transferred receivables, and the proceeds from the sale of the asset-backed securities are used to finance the securitized receivables. We are required to evaluate the term securitization trusts for consolidation. See Note 10 o f the Notes to Consolidated Financial Statements for more information on our non-recourse debt and consolidation of variable interest entities. Inventory Inventory consists primarily of new and used vehicles held for sale, valued at the lower of cost or net realizable value using the specific identification method. Cost includes acquisition, reconditioning, dealer installed accessories, and transportation expenses. Our new vehicle inventory costs are generally reduced by manufacturer holdbacks (percentage of either the manufacturer’s suggested retail price or invoice price of a new vehicle that the manufacturer repays to the dealer), incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising assistance. Parts, accessories, and other inventory are valued at the lower of cost or net realizable value. See Note 6 of the Notes to Consolidated Financial Statements for more detailed information about our inventory. Property and Equipment, net Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. In addition, we capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and depreciated over the estimated useful lives of the assets. Leased property meeting certain criteria is capitalized as a finance lease right-of-use asset and the present value of the related lease payments is recorded as a liability and included in current and/or long-term debt based on the lease term. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in Other (Income) Expense, Net (within Operating Income) in the Consolidated Statements of Income. See Note 7 of the Notes to Consolidated Financial Statements for detailed information about our property and equipment. Depreciation is recorded over the estimated useful lives of the assets involved using the straight-line method. Leasehold improvements and finance lease right-of-use assets are amortized to depreciation expense over the estimated useful life of the asset or the respective lease term used in determining lease classification, whichever is shorter. The range of estimated useful lives is as follows: Buildings and improvements 5 to 40 years Furniture, fixtures, and equipment 3 to 10 years We continually evaluate property and equipment, including leasehold improvements, to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the remaining balance should be evaluated for possible impairment. Such events or changes in circumstances may include a significant decrease in market value, a significant change in the business climate in a particular market, a current expectation that more-likely-than-not a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, or a current-period operating or cash flow loss combined with historical losses or projected future losses. We use an estimate of the related undiscounted cash flows over the remaining life of the asset (asset group) in assessing whether an asset (asset group) is recoverable. If the asset (asset group) is not recoverable, we determine the fair value of the asset (asset group) based on Level 3 inputs, and measure impairment losses based upon the amount by which the carrying amount of the asset (asset group) exceeds the fair value. If we recognize an impairment loss on a depreciable long-lived asset, the adjusted carrying amount of the asset becomes its new cost basis, which is depreciated over the remaining useful life of that asset. When property and equipment are identified as held for sale, we reclassify the held for sale assets to Other Current Assets and cease recording depreciation. We measure each long-lived asset or disposal group at the lower of its carrying amount or fair value less cost to sell and recognize a loss for any initial adjustment of the long-lived asset’s or disposal group’s carrying amount to fair value less cost to sell in the period the “held for sale” criteria are met. Such valuations include estimations of fair values and incremental direct costs to transact a sale. The fair value measurements for our long-lived assets held for sale are based on Level 3 inputs, which consider information obtained from third-party real estate valuation sources, or, in certain cases, pending agreements to sell the related assets. We recognize an impairment loss if the amount of the asset’s or disposal group’s carrying amount exceeds the asset’s or disposal group’s estimated fair value less cost to sell. Assets held for sale in both continuing operations and discontinued operations are reported in the “Corporate and other” category of our segment information. We had assets held for sale in continuing operations of $21.3 million at December 31, 2023, and $5.7 million at December 31, 2022. We had no assets held for sale in discontinued operations at December 31, 2023, and $1.1 million at December 31, 2022. See Note 19 of the Notes to Consolidated Financial Statements for information about our fair value measurement valuation process and impairment charges that were recorded during 2023, 2022, and 2021. Leases We lease numerous facilities and various types of equipment relating to our operations. See Note 9 of the Notes to Consolidated Financial Statements for a discussion of our significant accounting policies related to leases. Goodwill and Other Intangible Assets, net Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so. Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from three We do not amortize goodwill or franchise rights assets. Goodwill and franchise rights are tested for impairment annually or more frequently when events or changes in circumstances indicate that impairment may hav e occurred. During 2023, 2022, and 2021 we did not record any goodwill or franchise rights impairment charges. See Note 8 of the Notes to Consolidated Financial Statements for more information about our goodwill and other intangible assets and Note 19 of the Notes to Consolidated Financial Statements for information about our annual impairment tests of goodwill and franchise rights. Other Current Assets Other current assets consist of various items, including, among other items, prepaid expenses, contract assets, deposits, and assets held for sale in continuing operations. Other current assets also include restricted cash on deposit in reserve accounts for the benefit of holders of certain non-recourse debt. These funds are not expected to be available to the company or its creditors. Other Assets Other assets consist of various items, including, among other items, service loaner and rental vehicle inventory, net, the cash surrender value of corporate-owned life insurance held in a Rabbi Trust for deferred compensation plan participants, and investments in equity securities. Other Current Liabilities Other current liabilities consist of various items payable within one year including, among other items, accruals for sales taxes, the current portions of finance and insurance chargeback liabilities, operating lease liabilities, contract liabilities, and deferred revenue, customer deposits, accrued expenses, and accrued interest payable. Other Liabilities Other liabilities consist of various items payable beyond one year including, among other items, the long-term portions of deferred compensation obligations, finance and insurance chargeback liabilities, contract liabilities, and self-insurance liabilities. Employee Savings Plans We offer a 401(k) plan to all of our associates and provided a matching contribution to certain associates that participate in the plan of $24.5 million in 2023, $19.9 million in 2022, and $14.3 million in 2021. Employer matching contributions are fully vested immediately upon contribution. We offer a deferred compensation plan (the “Plan”) to provide certain associates and non-employee directors with the opportunity to accumulate assets for retirement on a tax-deferred basis. Participants in the Plan are allowed to defer a portion of their compensation and are fully vested in their respective deferrals and earnings. Participants may choose from a variety of investment options, which determine their earnings credits. Effective in January 2021, we suspended matching contributions to the Plan, which were reinstated effective January 2022. We provided a matching contribution to employee participants in the Plan of $2.1 million for 2023 and $1.3 million for 2022. One-third of the matching contribution is vested and credited to participants on the first day of the subsequent calendar year, and an additional one-third vests and is credited on each of the first and second anniversaries of such date. We may also make discretionary contributions, which vest three years after the effective date of the discretionary contribution. The balances due to participants in the Plan were $129.3 million as of December 31, 2023, and $107.8 million as of December 31, 2022, and are included in Other Current Liabilities and Other Liabilities in the accompanying Consolidated Balance Sheets. Stock-Based Compensation We grant stock-based awards in the form of time-based, performance-based, and market-based restricted stock units (“RSUs”), which are issued from our treasury stock upon vesting. Compensation cost for time-based and performance-based RSUs is based on the closing price of our common stock on the date of grant. Compensation cost for market-based RSUs is based on the fair value of the award calculated using a Monte Carlo simulation model on the date of grant. Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost for time-based RSUs is recognized on a straight-line basis over the shorter of the stated vesting period or the period until associates become retirement-eligible. Compensation cost for performance-based RSUs is recognized based on the expected achievement level of the performance goals, which is evaluated over the performance period, and recognized over the shorter of the stated vesting period or the period until associates become retirement-eligible. Compensation cost for market-based RSUs is recognized over the shorter of the stated vesting period or the period until associates become retirement-eligible, regardless of whether the market condition is satisfied. We account for forfeitures of stock-based awards as they occur. See Note 15 of the Notes to Consolidated Financial Statements for more information about our stock-based compensation arrangements. Revenue Recognition Revenue consists of the sales of new and used vehicles, sales of parts and automotive services, commissions for the placement of finance and insurance products, and sales of other products. See Note 2 of the Notes to Consolidated Financial Statements for a discussion of our significant accounting policies related to revenue recognition. Insurance Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, automobile, workers’ compensation, and employee medical benefits. Costs in excess of this retained risk per claim may be insured under various contracts with third-party insurance carriers. We review our claim and loss history on a periodic basis to assist in assessing our future liability. The ultimate costs of these retained insurance risks are estimated by management and by third-party actuarial evaluation of historical claims experience, adjusted for current trends and changes in claims-handling procedures. See Note 12 of the Notes to Consolidated Financial Statements for more information on our self-insurance liabilities. Manufacturer Incentives and Other Rebates We receive various incentives from manufacturers based on achieving certain objectives, such as specified sales volume targets, as well as other objectives, including maintaining standards of a particular vehicle brand, which may include but are not limited to facility image and design requirements, customer satisfaction survey results, and training standards, among others. These incentives are typically based upon units purchased or sold. These manufacturer incentives are recognized as a reduction of new vehicle cost of sales when earned, generally at the time the related vehicles are sold or upon attainment of the particular program goals, whichever is later. We also receive manufacturer rebates and assistance for holdbacks, floorplan interest, and non-reimbursement-based advertising expenses (described below), which are reflected as a reduction in the carrying value of each vehicle purchased by us. We recognize holdbacks, floorplan interest assistance, non-reimbursement-based advertising rebates, cash incentives, and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold. Advertising We generally expense the cost of advertising as incurred, net of earned manufacturer reimbursements for specific advertising costs and other discounts. Advertising expense, net of manufacturer advertising reimbursements, was $243.5 million in 2023, $184.3 million in 2022, and $170.3 million in 2021, and is reflected as a component of Selling, General, and Administrative Expenses in the accompanying Consolidated Statements of Income. Manufacturer advertising rebates that are reimbursements of costs associated with specific advertising expenses are earned in accordance with the respective manufacturers’ reimbursement-based advertising assistance programs, which is typically after we have incurred the corresponding advertising expenses, and are reflected as a reduction of advertising expense. Manufacturer advertising reimbursements classified as an offset to advertising expenses were $61.3 million in 2023, $58.2 million in 2022, and $51.4 million in 2021. All other non-reimbursement-based manufacturer advertising rebates that are not associated with specific advertising expenses are recorded as a reduction of inventory and recognized as a reduction of new vehicle cost of sales in the period the related vehicle is sold. Parts and Service Internal Profit Our parts and service departments recondition the majority of used vehicles acquired by our used vehicle departments and perform preparatory work and accessory installation on new vehicles acquired by our new vehicle departments. The parts and service departments charge the new and used vehicle departments as if they were third parties in order to account for total activity performed by that department. Revenues and costs of sales associated with the internal work performed by our parts and service departments are reflected in our parts and service results in our Consolidated Statements of Income. New and used vehicle revenues and costs of sales are reduced by the amount of the intracompany charge. As a result, the revenues and costs of sales associated with the internal work performed by our parts and service departments are eliminated in consolidation. We also defer internal profit associated with the internal work performed by our parts and service departments on our vehicle inventory until such vehicles have been sold. Income Taxes We file a consolidated federal income tax return. Deferred income taxes have been provided for temporary differences between the recognition of revenue and expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the financial statements. See Note 13 of the Notes to Consolidated Financial Statements for more detailed information related to income taxes. Earnings Per Share Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested RSU awards. Diluted earnings per share is computed using the treasury stock method by dividing net income by the weighted average number of shares outstanding, noted above, including the dilutive effect of unvested RSU awards and stock options. See Note 3 of the Notes to Consolidated Financial Statements for more information on the computation of earnings per share. Recent Accounting Pronouncements In December 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standard Update (“ASU”) 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures, that requires presentation of specific categories of reconciling items, as well reconciling items that meet a quantitative threshold, in the reconciliation between the income tax provision and the income tax provision using statutory tax rates. The standard also requires disclosure of income taxes paid disaggregated by jurisdiction with separate disclosure of income taxes paid to individual jurisdictions that meet a quantitative threshold. The amendments in this accounting standard are effective for fiscal years beginning after December 15, 2024, on a prospective basis. Early adoption and retrospective application are permitted. We do not expect the adoption of this accounting standard to have an impact on our Consolidated Financial Statements, but will require certain additional disclosures. In November 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures, that requires disclosure of significant segment expenses that are regularly reviewed by the chief operating decision maker and included within each reported measure of segment profit or loss. The standard also requires disclosure of the composition of other segment items included in the measure of segment profit or loss that are not separately disclosed. The new standard is effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted. We do not expect the adoption of this accounting standard to have an impact on our Consolidated Financial Statements, but will require certain additional disclosures. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
Revenue Recognition | REVENUE RECOGNITION Disaggregation of Revenue The significant majority of our revenue is from contracts with customers. Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue and expenses. In the following tables, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. The tables also include a reconciliation of the disaggregated revenue to reportable segment revenue. Year Ended December 31, 2023 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 3,525.0 $ 3,996.0 $ 5,246.4 $ — $ 12,767.4 Used vehicle 2,428.4 2,222.2 2,979.5 568.4 8,198.5 Parts and service 1,184.7 1,150.1 1,593.1 605.8 4,533.7 Finance and insurance, net 432.0 490.1 446.2 50.5 1,418.8 Other 3.1 22.5 1.2 3.7 30.5 $ 7,573.2 $ 7,880.9 $ 10,266.4 $ 1,228.4 $ 26,948.9 Timing of Revenue Recognition Goods and services transferred at a point in time $ 6,723.2 $ 6,988.3 $ 8,911.4 $ 819.9 $ 23,442.8 Goods and services transferred over time (2) 850.0 892.6 1,355.0 408.5 3,506.1 $ 7,573.2 $ 7,880.9 $ 10,266.4 $ 1,228.4 $ 26,948.9 Year Ended December 31, 2022 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 3,409.1 $ 3,473.0 $ 4,872.3 $ — $ 11,754.4 Used vehicle 3,022.3 2,652.7 3,499.8 487.0 9,661.8 Parts and service 1,092.7 1,050.9 1,448.6 508.4 4,100.6 Finance and insurance, net 460.3 494.1 453.8 29.1 1,437.3 Other 3.1 19.6 3.6 4.6 30.9 $ 7,987.5 $ 7,690.3 $ 10,278.1 $ 1,029.1 $ 26,985.0 Timing of Revenue Recognition Goods and services transferred at a point in time $ 7,226.9 $ 6,896.2 $ 9,063.1 $ 703.7 $ 23,889.9 Goods and services transferred over time (2) 760.6 794.1 1,215.0 325.4 3,095.1 $ 7,987.5 $ 7,690.3 $ 10,278.1 $ 1,029.1 $ 26,985.0 Year Ended December 31, 2021 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 3,601.8 $ 3,969.8 $ 4,510.1 $ — $ 12,081.7 Used vehicle 2,875.0 2,370.5 3,067.4 325.9 8,638.8 Parts and service 1,007.6 950.0 1,246.7 502.3 3,706.6 Finance and insurance, net 469.1 489.6 401.0 24.8 1,384.5 Other 6.4 18.6 4.7 2.7 32.4 $ 7,959.9 $ 7,798.5 $ 9,229.9 $ 855.7 $ 25,844.0 Timing of Revenue Recognition Goods and services transferred at a point in time $ 7,260.7 $ 7,079.0 $ 8,197.6 $ 535.6 $ 23,072.9 Goods and services transferred over time (2) 699.2 719.5 1,032.3 320.1 2,771.1 $ 7,959.9 $ 7,798.5 $ 9,229.9 $ 855.7 $ 25,844.0 (1) “Corporate and other” is comprised of our other businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, auction operations, and AutoNation Mobile Service. (2) Represents revenue recognized during the period for automotive repair and maintenance services. Performance Obligations and Significant Judgments and Estimates Related to Revenue Recognition New and Used Vehicle We sell new vehicles at our franchised dealerships and used vehicles at our franchised dealerships, AutoNation USA used vehicle stores, and wholesale auctions. The transaction price for a vehicle sale is determined with the customer at the time of sale. Customers often trade in their own vehicle to apply toward the purchase of a retail new or used vehicle. The “trade-in” vehicle is a type of noncash consideration measured at fair value, based on external and internal market data for the specific vehicle, and applied as payment to the contract price for the purchased vehicle. When we sell a new or used vehicle, we typically transfer control at a point in time upon delivery of the vehicle to the customer, which is generally at time of sale, as the customer is able to direct the use of, and obtain substantially all of the benefits from, the vehicle at such time. We do not directly finance our customers’ vehicle purchases or leases. We offer indirect financing on certain vehicles we sell, and income from such financing is reflected in our AutoNation Finance results within Other (Income) Expense, Net in our Consolidated Statements of Income. In many cases, we arrange third-party financing for the retail sale or lease of vehicles to our customers in exchange for a fee paid to us by the third-party financial institution. We receive payment directly from the customer at the time of sale, from the third-party financial institution (referred to as contracts-in-transit or vehicle receivables, which are part of our receivables from contracts with customers), or from our captive finance company within a short period of time following the sale. We establish provisions, which are not significant, for estimated returns and warranties on the basis of both historical information and current trends. We also offer auction services at our AutoNation-branded automotive auctions, revenue from which is included within Used Vehicle wholesale revenue. The transaction price for auction services is based on an established pricing schedule and determined with the customer at the time of sale, and payment is due upon completion of service. We satisfy our performance obligations related to auction services at the point in time that control transfers to the customer, which is when the service is completed. Parts and Service We sell parts and automotive services related to customer-paid repairs and maintenance, repairs and maintenance under manufacturer warranties and extended service contracts, and collision-related repairs. We also sell parts through our wholesale and retail counter channels, as well as our e-commerce website. Each automotive repair and maintenance service is a single performance obligation that includes both the parts and labor associated with the service. Payment for automotive service work is typically due upon completion of the service, which is generally completed within a short period of time from contract inception. The transaction price for automotive repair and maintenance services is based on the parts used, the number of labor hours applied, and standardized hourly labor rates. We satisfy our performance obligations, transfer control, and recognize revenue over time for automotive repair and maintenance services because we are creating an asset with no alternative use and we have an enforceable right to payment for performance completed to date. We use an input method to recognize revenue and measure progress based on labor hours expended relative to the total labor hours expected to be expended to satisfy the performance obligation. We have determined labor hours expended to be the relevant measure of work performed to complete the automotive repair or maintenance service for the customer. As a practical expedient, since automotive repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue. The transaction price for wholesale and retail counter parts sales is determined at the time of sale based on the quantity and price of each product purchased. Payment is typically due at time of sale, or within a short period of time following the sale. We establish provisions, which are not significant, for estimated parts returns based on historical information and current trends. Delivery methods of wholesale and retail counter parts vary; however, we generally consider control of wholesale and retail counter parts to transfer when the products are shipped, which typically occurs the same day as or within a few days of the sale. Finance and Insurance We sell and receive a commission on the following types of finance and insurance products: extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products, among others. We offer products that are sold and administered by independent third parties, including the vehicle manufacturers’ captive finance subsidiaries. Pursuant to our arrangements with these third-party providers, we sell the products on a commission basis, and, for certain products, we also participate in future profit pursuant to retrospective commission arrangements with the issuers of those contracts through the life of the related contracts. For retrospective commission arrangements, we are paid annually based on the annual performance of the issuers’ product portfolio. For the majority of finance and insurance product sales, our performance obligation is to arrange for the provision of goods or services by another party. Our performance obligation is satisfied when this arrangement is made, which is when the finance and insurance product is delivered to the end-customer, generally at the time of the vehicle sale. As agent, we recognize revenue in the amount of any fee or commission to which we expect to be entitled, which is the net amount of consideration that we retain after paying the third-party provider the consideration received in exchange for the goods or services to be fulfilled by that party. The retrospective commission we earn on each product sold is a form of variable consideration that is subject to constraint due to it being highly susceptible to factors outside our influence and control. Our agreements with the third-party administrators generally provide for an annual retrospective commission payout based on the product portfolio performance for that year. We estimate variable consideration related to retrospective commissions and perform a constraint analysis using the expected value method based on the historical performance of the product portfolios and current trends to estimate the amount of retrospective commissions to which we expect we will be entitled. At each reporting period, we reassess our expectations about the amount of retrospective commission variable consideration to which we expect to be entitled and recognize revenue when we no longer believe a significant revenue reversal is probable. Additionally, we may be charged back for commissions related to finance and insurance products in the event of early termination, default, or prepayment of the contracts by end-customers (“chargebacks”). An estimated refund liability for chargebacks against the revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized and is based primarily on our historical chargeback experience. We update our measurement of the chargeback liability at each reporting date for changes in expectations about the amount of chargebacks. See Note 11 of the Notes to Consolidated Financial Statements for more information regarding chargeback liabilities. We also sell a vehicle maintenance program (the Vehicle Care Program or “VCP”) where we act as the principal in the sale since we have the primary responsibility to provide the specified services to the customer under the VCP contract. When a VCP product is sold in conjunction with the sale of a vehicle to the same customer, the stand-alone selling prices of each product are based on observable selling prices. Under a VCP contract, a customer purchases a specific number of maintenance services to be redeemed at an AutoNation location over a five-year term from the date of purchase. We satisfy our performance obligations and recognize revenue as maintenance services are rendered, since the customer benefits when we have completed the maintenance service. Although payment is due from the customer at the time of sale and services are rendered at points in time during a five-year contract term, these contracts do not contain a significant financing component as the transfer of services is at the discretion of the customer. The following table includes estimated revenue expected to be recognized in the future related to VCP performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. Revenue Expected to Be Recognized by Period Total Next 12 Months 13 - 36 Months 37 - 60 Months Revenue expected to be recognized on VCP contracts sold as of period end $ 107.3 $ 36.7 $ 52.3 $ 18.3 We also recognize revenue, net of estimated chargebacks, for commissions earned by us for the transfer of financial assets when we arrange installment loans and leases with third-party lenders in connection with customer vehicle purchases. Other Revenue The majority of our other revenue is generated from the sale of vehicles to fleet/rental car companies that are specifically ordered for such companies (“fleet” sales). Revenue recognition for fleet sales is very similar to the recognition of revenue for new vehicles, described above. Contract Assets and Liabilities When the timing of our provision of goods or services is different from the timing of payments made by our customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with automotive repair and maintenance services, as well as our estimate of variable consideration that has been included in the transaction price for certain finance and insurance products (retrospective commissions). These contract assets are reclassified to receivables when the right to consideration becomes unconditional. Contract liabilities primarily relate to upfront payments received from customers for the sale of VCP contracts. Our receivables from contracts with customers are included in Receivables, net, our current contract asset is included with Other Current Assets, our long-term contract asset is included with Other Assets, our current contract liability is included with Other Current Liabilities, and our long-term contract liability is included with Other Liabilities in our Consolidated Balance Sheets. The following table provides the balances at December 31 of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities: 2023 2022 2021 Receivables from contracts with customers, net $ 762.0 $ 634.5 $ 539.9 Contract Asset (Current) $ 23.1 $ 27.7 $ 30.4 Contract Asset (Long-Term) $ 3.2 $ 8.6 $ 14.2 Contract Liability (Current) $ 42.5 $ 41.8 $ 33.6 Contract Liability (Long-Term) $ 70.6 $ 66.6 $ 60.5 The change in the balances of our contract assets and contract liabilities primarily result from the timing differences between our performance and the customer’s payment, as well as changes in the estimated transaction price related to variable consideration for performance obligations satisfied in previous periods. The following table presents revenue recognized during the year from amounts included in the contract liability balance at the beginning of the period and adjustments to revenue related to performance obligations satisfied in previous periods: 2023 2022 2021 Amounts included in contract liability at the beginning of the period $ 35.0 $ 33.6 $ 32.1 Performance obligations satisfied in previous periods $ — $ 2.1 $ 19.4 Other significant changes include contract assets reclassified to receivables of $29.1 million during 2023 and $30.5 million in 2022. Contract Costs For sales commissions incurred related to sales of vehicles and sales of finance and insurance products for which we act as agent, we have elected as a practical expedient to not capitalize the incremental costs to obtain those contracts since they are point-of-sale transactions and the amortization period would be immediate. Sales commissions and third-party administrator fees incurred related to sales of VCP products are capitalized since these payments are directly related to sales achieved during a time period and would not have been incurred if the contract had not been obtained. Since the capitalized costs are related to services that are transferred during a five-year contract term, we amortize the assets over the contract term of five years consistent with the pattern of transfer of the service to which the assets relate. We had capitalized costs incurred to obtain or fulfill a VCP contract with a customer of $10.4 million as of December 31, 2023, and $10.1 million at December 31, 2022. We amortized $4.0 million and $3.8 million of these capitalized costs during 2023 and 2022, respectively. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | EARNINGS PER SHARE Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested RSU awards. Diluted EPS is calculated using the treasury stock method by dividing net income by the weighted average number of shares outstanding, noted above, including the dilutive effect of unvested RSU awards and stock options. The following table presents the calculation of basic and diluted EPS: 2023 2022 2021 Net income from continuing operations $ 1,020.2 $ 1,377.7 $ 1,373.3 Income (loss) from discontinued operations, net of income taxes 0.9 (0.3) (0.3) Net income $ 1,021.1 $ 1,377.4 $ 1,373.0 Basic weighted average common shares outstanding 44.6 56.3 74.2 Dilutive effect of unvested RSUs and stock options 0.3 0.4 0.8 Diluted weighted average common shares outstanding 44.9 56.7 75.0 Basic EPS amounts (1) : Continuing operations $ 22.87 $ 24.47 $ 18.51 Discontinued operations $ 0.02 $ (0.01) $ — Net income $ 22.89 $ 24.47 $ 18.50 Diluted EPS amounts (1) : Continuing operations $ 22.72 $ 24.30 $ 18.31 Discontinued operations $ 0.02 $ (0.01) $ — Net income $ 22.74 $ 24.29 $ 18.31 (1) EPS amounts are calculated discretely and, therefore, may not add up to the total due to rounding. A summary of anti-dilutive equity instruments excluded from the computation of diluted EPS is as follows: 2023 2022 2021 Anti-dilutive equity instruments excluded from the computation of diluted EPS — 0.1 — |
Receivables, Net
Receivables, Net | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Receivables, Net | RECEIVABLES, NET The components of receivables, net of allowances for expected credit losses, at December 31 are as follows: 2023 2022 Contracts-in-transit and vehicle receivables $ 553.8 $ 441.1 Trade receivables 173.2 156.6 Manufacturer receivables 240.5 174.4 Income taxes receivable (see Note 13) 11.1 20.2 Other 63.9 68.2 1,042.5 860.5 Less: allowances for expected credit losses (2.1) (1.7) Receivables, net $ 1,040.4 $ 858.8 Contracts-in-transit and vehicle receivables primarily represent receivables from financial institutions for the portion of the vehicle sales price financed by our customers. Trade receivables represent amounts due for parts and services sold, excluding amounts due from manufacturers, as well as receivables from finance organizations for commissions on the sale of finance and insurance products. Manufacturer receivables represent amounts due from manufacturers for holdbacks, rebates, incentives, floorplan assistance, and warranty claims. We evaluate our receivables for collectability based on past collection experience, current information, and reasonable and supportable forecasts. |
Auto Loans Receivable
Auto Loans Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Auto Loans Receivable | AUTO LOANS RECEIVABLE Auto loans receivable include amounts due from customers related to retail vehicle sales financed through our auto finance company (referred to as AutoNation Finance), as well as retail vehicle installment sales contracts acquired through third-party independent dealers prior to October 2023. Auto loans receivable are presented net of an allowance for expected credit losses. Auto loans receivable represent a large group of smaller-balance homogeneous loans, which we consider to be part of one class of financing receivable and one portfolio segment for purposes of determining our allowance for expected credit losses. AutoNation Finance operating results include the interest and fee income generated by auto loans receivable less the interest expense associated with the debt issued to fund these receivables, a provision for estimated credit losses, and direct expenses, as well as gains or losses on the sale of auto loans receivable. AutoNation Finance operating results are included as a component of Other (Income) Expense, Net (within Operating Income). Interest income on auto loans receivable is recognized when earned based on contractual loan terms. Direct costs associated with loan originations are capitalized and amortized using the effective interest method. Auto Loans Receivable, Net The components of auto loans receivable, net of unearned discounts and allowances for expected credit losses, at December 31, are as follows: 2023 2022 Total auto loans receivable $ 451.2 $ 377.0 Accrued interest and fees 4.8 4.4 Deferred loan origination costs 1.6 0.5 Less: unearned discounts (8.9) (21.3) Less: allowances for expected credit losses (46.3) (57.5) Auto loans receivable, net $ 402.4 $ 303.1 Credit Quality We utilize proprietary credit scoring models to rate the risk of default for customers that apply for financing by evaluating customer credit history and certain credit application information. Our evaluation considers information such as payment history for prior or existing credit accounts, as well as application information such as income, collateral, and down payment. The scoring models yield credit program tiers that represent the relative likelihood of repayment. The assigned credit tier influences the terms of the agreement, such as the required loan-to-value ratio and interest rate. After origination, credit tier assignments by customer are generally not updated. We monitor the credit quality of the auto loans receivable on an ongoing basis and also validate the accuracy of the credit scoring models periodically. Loan performance is reviewed on a recurring basis to identify whether the assigned credit tiers adequately reflect the customers’ likelihood of repayment, and if needed, adjustments are made to the scoring models on a prospective basis. Auto Loans Receivable by Major Credit Program The following table presents auto loans receivable as of December 31, 2023, and December 31, 2022, disaggregated by major credit program tier: Fiscal Year of Origination As of December 31, 2023 2023 2022 2021 2020 2019 Prior to 2019 Total Credit Program Tier (1) : Platinum $ 163.9 $ 14.8 $ 8.2 $ 3.3 $ 3.1 $ 0.5 $ 193.8 Gold 64.3 35.9 18.5 6.8 4.5 0.8 130.8 Silver 50.2 33.0 16.2 5.2 2.8 0.3 107.7 Bronze 6.7 0.7 6.0 1.5 0.1 — 15.0 Copper 0.3 0.2 2.8 0.5 0.1 — 3.9 Total auto loans receivable $ 285.4 $ 84.6 $ 51.7 $ 17.3 $ 10.6 $ 1.6 $ 451.2 Current-period gross write-offs $ 10.5 $ 33.6 $ 16.4 $ 4.6 $ 2.5 $ 0.7 $ 68.3 Fiscal Year of Origination As of December 31, 2022 2022 2021 2020 2019 2018 Prior to 2018 Total Credit Program Tier (1) : Platinum $ 21.9 $ 12.9 $ 6.4 $ 7.4 $ 2.2 $ 0.2 $ 51.0 Gold 53.7 30.0 12.9 10.6 3.2 0.4 110.8 Silver 61.9 29.8 10.4 8.0 1.9 0.1 112.1 Bronze 41.4 17.1 7.4 3.7 1.0 0.1 70.7 Copper 19.2 8.0 2.6 1.8 0.7 0.1 32.4 Total auto loans receivable $ 198.1 $ 97.8 $ 39.7 $ 31.5 $ 9.0 $ 0.9 $ 377.0 (1) Classified based on credit grade assigned when customer was initially approved for financing. Allowance for Credit Losses The allowance for credit losses represents the net credit losses expected over the remaining contractual life of our auto loans receivable. The allowance for credit losses is determined using a vintage-level statistical model that captures the relationship between historical changes in gross losses and the lifetime loss curves by month on book, credit tiers at origination, and seasonality, adjusted for expected recoveries based on historical recovery trends. The credit loss model also incorporates reasonable and supportable forecasts about the future utilizing a forecast of a macroeconomic variable, specifically, the change in U.S. disposable personal income, which we believe is most strongly correlated to evaluating and predicting expected credit losses of our auto loans receivable. We utilize a reasonable and supportable forecast period of one year, after which we immediately revert to historical experience. We periodically consider whether the use of alternative variables would result in improved credit loss model accuracy and revise the model when appropriate. We also consider whether qualitative adjustments are necessary for factors that are not reflected in the quantitative methods but impact the measurement of estimated credit losses. Such adjustments include the expectations of the impact of recent economic trends on customer behavior. The net loss estimate is calculated by applying the loss rates developed using the methods described above to the amortized cost basis of the auto loans receivable. The change in the allowance for credit losses is recognized through an adjustment to the provision for credit losses. Rollforward of Allowance for Credit Losses The following is a rollforward of our allowance for expected credit losses for auto loans receivable for the years ended December 31, 2023, and December 31, 2022: 2023 2022 (1) Balance as of beginning of year $ 57.5 $ — Provision for credit losses 45.9 43.8 Initial allowance for purchased credit-deteriorated loans — 21.7 Write-offs (68.3) (13.9) Recoveries (2) 27.3 5.9 Sold loans (16.1) — Balance as of end of year $ 46.3 $ 57.5 (1) Reflects activity that occurred after the acquisition of CIG Financial on October 1, 2022. Provision for credit losses includes initial credit loss expense of $34.2 million associated with the auto loan portfolio acquired as part of the acquisition. (2) Includes proceeds from the recovery of vehicle collateral, net of costs incurred. During 2023, we sold loans with an aggregate amortized cost of $60.6 million, net of allowance for expected credit losses of $16.1 million, for cash proceeds of $68.7 million. We recorded a net gain on sale of $8.1 million pre-tax. We have no continuing involvement in the sold loans as they were sold without recourse to us for their post-sale performance. Past Due Auto Loans Receivable An account is considered delinquent if 95% of the required principal and interest payments have not been received as of the date such payments were due. All loans continue to accrue interest until repayment, write-off, or when a loan reaches 75 days past due. If payment is received after a loan has stopped accruing interest due to reaching 75 days past due, the loan will be deemed current and the accrual of interest resumes. When a write-off occurs, accrued interest is written off by reversing interest income. Payments received on nonaccrual assets are recorded using a combination of the cost recovery method and the cash basis method depending on whether the related loan has been written off. In general, accounts are written off on the last business day of the month during which the earliest of the following occurs: the receivable is 120 days or more delinquent as of the last business day of the month, the vehicle has been repossessed and liquidated, or the related vehicle has been in repossession inventory for at least 60 days. The following table presents past due auto loans receivable, as of December 31, 2023, and December 31, 2022: Age Analysis of Past-Due Financial Assets as of December 31, 2023 2022 31-60 Days $ 20.7 $ 13.0 61-90 Days 5.4 4.1 Greater than 90 Days 3.1 2.6 Total Past Due $ 29.2 $ 19.7 Current 422.0 357.3 Total $ 451.2 $ 377.0 |
Inventory and Vehicle Floorplan
Inventory and Vehicle Floorplan Payable | 12 Months Ended |
Dec. 31, 2023 | |
Inventory And Vehicle Floorplan Payable [Abstract] | |
Inventory And Vehicle Floorplan Payable | INVENTORY AND VEHICLE FLOORPLAN PAYABLE The components of inventory at December 31 are as follows: 2023 2022 New vehicles $ 1,948.6 $ 1,009.7 Used vehicles 815.3 789.1 Parts, accessories, and other 269.5 249.5 Inventory $ 3,033.4 $ 2,048.3 The components of vehicle floorplan payable at December 31 are as follows: 2023 2022 Vehicle floorplan payable - trade $ 1,760.0 $ 946.6 Vehicle floorplan payable - non-trade 1,622.4 1,162.7 Vehicle floorplan payable $ 3,382.4 $ 2,109.3 Vehicle floorplan payable-trade reflects amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with the corresponding manufacturers’ captive finance subsidiaries (“trade lenders”). Vehicle floorplan payable-non-trade represents amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with non-trade lenders, as well as amounts borrowed under our secured used vehicle floorplan facilities. Changes in vehicle floorplan payable-trade are reported as operating cash flows and changes in vehicle floorplan payable-non-trade are reported as financing cash flows in the accompanying Consolidated Statements of Cash Flows. Our inventory costs are generally reduced by manufacturer holdbacks, incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising rebates, while the related vehicle floorplan payables are reflective of the gross cost of the vehicle. The vehicle floorplan payables, as shown in the above table, may also be higher than the inventory cost due to the timing of the sale of a vehicle and payment of the related liability. Vehicle floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related vehicles are sold. Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related receivables. At December 31, 2023, our new vehicle floorplan facilities utilized Prime-based and SOFR-based interest rates. Our new vehicle floorplan outstanding had a weighted-average interest rate of 7.1% at December 31, 2023, and 5.9% at December 31, 2022. At December 31, 2023, the aggregate capacity under our new vehicle floorplan facilities to finance our new vehicle inventory was approximately $4.7 billion, of which $2.8 billion had been borrowed. |
Property and Equipment, Net
Property and Equipment, Net | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | PROPERTY AND EQUIPMENT, NET A summary of property and equipment, net, at December 31 is as follows: 2023 2022 Land $ 1,539.5 $ 1,507.8 Buildings and improvements 2,898.1 2,671.6 Furniture, fixtures, and equipment 1,486.7 1,362.9 5,924.3 5,542.3 Less: accumulated depreciation and amortization (2,132.7) (1,935.1) Property and equipment, net $ 3,791.6 $ 3,607.2 We capitalized interest in connection with various construction projects to build, upgrade, or remodel our facilities of $1.4 million in 2023, $2.2 million in 2022, and $0.8 million in 2021. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Net | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill And Intangible Assets, Net | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill and intangible assets, net, at December 31 consisted of the following: 2023 2022 Goodwill $ 1,465.8 $ 1,320.1 Franchise rights - indefinite-lived $ 876.2 $ 816.2 Other intangible assets 68.0 30.7 944.2 846.9 Less: accumulated amortization (16.4) (9.9) Intangible assets, net $ 927.8 $ 837.0 Goodwill Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022, were as follows: Domestic Import Premium Other Consolidated Balance as of January 1, 2022 Goodwill (1) $ 368.7 $ 517.9 $ 741.5 $ 1,535.5 $ 3,163.6 Accumulated impairment losses (1) (140.0) — (257.4) (1,530.9) (1,928.3) 228.7 517.9 484.1 4.6 1,235.3 Acquisitions, dispositions, and other adjustments, net (2) 7.6 0.8 (2.0) 78.4 84.8 Balance as of December 31, 2022 Goodwill (1) 376.3 518.7 739.5 1,613.9 3,248.4 Accumulated impairment losses (1) (140.0) — (257.4) (1,530.9) (1,928.3) 236.3 518.7 482.1 83.0 1,320.1 Acquisitions, dispositions, and other adjustments, net (2) (1.8) 7.9 — 139.6 145.7 Balance as of December 31, 2023 Goodwill (1) 374.5 526.6 739.5 1,753.5 3,394.1 Accumulated impairment losses (1) (140.0) — (257.4) (1,530.9) (1,928.3) $ 234.5 $ 526.6 $ 482.1 $ 222.6 $ 1,465.8 (1) Gross goodwill balance and accumulated impairment losses reflected in “Other” include $1.47 billion associated with our single reporting unit (prior to September 30, 2008, our reporting unit reporting structure was comprised of a single reporting unit). Gross goodwill balance reflected in “Other” also includes amounts associated with the Collision Center, Parts Center, AutoNation Finance and AutoNation Mobile Service reporting units, as applicable in a given period. (2) Includes amounts reclassified to held for sale and related adjustments, which are presented in Other Current Assets in our Consolidated Balance Sheet as of period end. See Note 19 of the Notes to Consolidated Financial Statements for more information about our goodwill impairment test. Intangible Assets Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers. As of December 31, 2023, we had $876.2 million of franchise rights recorded on our Consolidated Balance Sheet, of which $231.1 million was related to Domestic stores, $196.6 million was related to Import stores, and $448.5 million was related to Premium Luxury stores. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | . LEASES General description The significant majority of leases that we enter into are for real estate. We lease numerous facilities relating to our operations, including primarily for automobile showrooms, display lots, service facilities, collision repair centers, supply facilities, automobile storage lots, parking lots, offices, and our corporate headquarters. Leases for real property generally have terms ranging from 1 to 25 years. We also lease various types of equipment, including security cameras, diagnostic equipment, copiers, key-cutting machines, and postage machines, among others. Equipment leases generally have terms ranging from 1 to 5 years. In addition, we lease certain vehicles from vehicle manufacturers to provide our service customers with the use of a vehicle while their vehicles are being serviced at our dealerships. These service loaner vehicle leases generally have terms ranging from 6 to 18 months, and we typically purchase the service loaner vehicles at the end of the lease. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We do not have any significant leases that have not yet commenced but that create significant rights and obligations for us. We have elected the practical expedient under ASC Topic 842 to not separate lease and nonlease components for the following classes of underlying assets: real estate, office equipment, service loaner vehicles, and marketing-related assets (e.g., billboards). Our real estate and equipment leases often require that we pay maintenance in addition to rent. Additionally, our real estate leases generally require payment of real estate taxes and insurance. Maintenance, real estate taxes, and insurance payments are generally variable and based on actual costs incurred by the lessor. Therefore, these amounts are not included in the consideration of the contract when determining the right-of-use (“ROU”) asset and lease liability, but are reflected as variable lease expenses for those classes of underlying assets for which we have elected the practical expedient to not separate lease and nonlease components. Leases with an initial term of 12 months or less that do not include a purchase option that is reasonably certain to be exercised are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We rent or sublease certain real estate to third parties, which are primarily operating leases. Variable lease payments A majority of our lease agreements include fixed rental payments. Certain of our lease agreements include fixed rental payments that are adjusted periodically for changes in the Consumer Price Index (“CPI”). P ayments based on a change in an index or a rate are not considered in the determination of lease payments for purposes of measuring the related lease liability. While lease liabilities are not remeasured as a result of changes to the CPI, changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments are incurred. Options to extend or terminate leases Most of our real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one Discount rate For our incremental borrowing rate, we generally use a portfolio approach to determine the discount rate for leases with similar characteristics. We determine discount rates based on current market prices of instruments similar to our unsecured borrowings with maturities that align with the relevant lease term, and such rates are then adjusted for our credit spread and the effects of full collateralization. The following tables present information about our ROU assets, lease liabilities, total lease costs, cash flows arising from lease transactions, and other supplemental information for the years ended December 31, 2023 and 2022: Leases Classification 2023 2022 Assets Operating Operating Lease Assets $ 392.1 $ 323.5 Finance Property and Equipment, Net and Other Assets 351.1 361.4 Total right-of-use assets $ 743.2 $ 684.9 Liabilities Current Operating Other Current Liabilities $ 41.2 $ 39.5 Finance Current Maturities of Long-Term Debt and Vehicle Floorplan Payable - Trade 46.9 39.0 Noncurrent Operating Noncurrent Operating Lease Liabilities 363.2 296.9 Finance Long-Term Debt, Net of Current Maturities 349.6 363.2 Total lease liabilities $ 800.9 $ 738.6 Lease Term and Discount Rate 2023 2022 Weighted average remaining lease term Operating 12 years 11 years Finance 13 years 14 years Weighted-average discount rate Operating 5.71 % 5.25 % Finance 4.43 % 4.47 % Lease cost Classification 2023 2022 Operating lease cost Selling, general, and administrative expenses $ 62.3 $ 56.0 Finance lease cost: Amortization of ROU assets Depreciation and amortization 24.6 20.9 Interest on lease liabilities Other interest expense and floorplan interest expense 17.8 13.3 Short-term lease cost (1) Selling, general, and administrative expenses 11.3 10.6 Variable lease cost Selling, general, and administrative expenses 12.0 10.5 Sublease income Selling, general, and administrative expenses (3.6) (3.6) Net lease cost $ 124.4 $ 107.7 (1) Includes leases with a term of one month or less. Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 61.4 $ 56.8 Operating cash flows from finance leases (1) $ 63.7 $ 36.2 Financing cash flows from finance leases $ 12.3 $ 11.3 Supplemental noncash information on adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new: Operating lease liabilities $ 111.7 $ 78.7 Finance lease liabilities $ 54.7 $ 90.8 (1) Includes the interest component of payments made on finance leases as well as principal payments on vehicle floorplan payables with trade lenders for certain service loaner vehicle leases. Maturity of Lease Liabilities Operating Leases Finance Leases Year ending December 31, 2024 $ 58.1 $ 59.8 2025 58.0 83.0 2026 53.4 24.1 2027 50.6 25.3 2028 47.3 25.0 Thereafter 304.5 284.1 Total lease payments 571.9 501.3 Less: interest (167.5) (104.8) Present value of lease liabilities $ 404.4 $ 396.5 |
Leases | . LEASES General description The significant majority of leases that we enter into are for real estate. We lease numerous facilities relating to our operations, including primarily for automobile showrooms, display lots, service facilities, collision repair centers, supply facilities, automobile storage lots, parking lots, offices, and our corporate headquarters. Leases for real property generally have terms ranging from 1 to 25 years. We also lease various types of equipment, including security cameras, diagnostic equipment, copiers, key-cutting machines, and postage machines, among others. Equipment leases generally have terms ranging from 1 to 5 years. In addition, we lease certain vehicles from vehicle manufacturers to provide our service customers with the use of a vehicle while their vehicles are being serviced at our dealerships. These service loaner vehicle leases generally have terms ranging from 6 to 18 months, and we typically purchase the service loaner vehicles at the end of the lease. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We do not have any significant leases that have not yet commenced but that create significant rights and obligations for us. We have elected the practical expedient under ASC Topic 842 to not separate lease and nonlease components for the following classes of underlying assets: real estate, office equipment, service loaner vehicles, and marketing-related assets (e.g., billboards). Our real estate and equipment leases often require that we pay maintenance in addition to rent. Additionally, our real estate leases generally require payment of real estate taxes and insurance. Maintenance, real estate taxes, and insurance payments are generally variable and based on actual costs incurred by the lessor. Therefore, these amounts are not included in the consideration of the contract when determining the right-of-use (“ROU”) asset and lease liability, but are reflected as variable lease expenses for those classes of underlying assets for which we have elected the practical expedient to not separate lease and nonlease components. Leases with an initial term of 12 months or less that do not include a purchase option that is reasonably certain to be exercised are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We rent or sublease certain real estate to third parties, which are primarily operating leases. Variable lease payments A majority of our lease agreements include fixed rental payments. Certain of our lease agreements include fixed rental payments that are adjusted periodically for changes in the Consumer Price Index (“CPI”). P ayments based on a change in an index or a rate are not considered in the determination of lease payments for purposes of measuring the related lease liability. While lease liabilities are not remeasured as a result of changes to the CPI, changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments are incurred. Options to extend or terminate leases Most of our real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one Discount rate For our incremental borrowing rate, we generally use a portfolio approach to determine the discount rate for leases with similar characteristics. We determine discount rates based on current market prices of instruments similar to our unsecured borrowings with maturities that align with the relevant lease term, and such rates are then adjusted for our credit spread and the effects of full collateralization. The following tables present information about our ROU assets, lease liabilities, total lease costs, cash flows arising from lease transactions, and other supplemental information for the years ended December 31, 2023 and 2022: Leases Classification 2023 2022 Assets Operating Operating Lease Assets $ 392.1 $ 323.5 Finance Property and Equipment, Net and Other Assets 351.1 361.4 Total right-of-use assets $ 743.2 $ 684.9 Liabilities Current Operating Other Current Liabilities $ 41.2 $ 39.5 Finance Current Maturities of Long-Term Debt and Vehicle Floorplan Payable - Trade 46.9 39.0 Noncurrent Operating Noncurrent Operating Lease Liabilities 363.2 296.9 Finance Long-Term Debt, Net of Current Maturities 349.6 363.2 Total lease liabilities $ 800.9 $ 738.6 Lease Term and Discount Rate 2023 2022 Weighted average remaining lease term Operating 12 years 11 years Finance 13 years 14 years Weighted-average discount rate Operating 5.71 % 5.25 % Finance 4.43 % 4.47 % Lease cost Classification 2023 2022 Operating lease cost Selling, general, and administrative expenses $ 62.3 $ 56.0 Finance lease cost: Amortization of ROU assets Depreciation and amortization 24.6 20.9 Interest on lease liabilities Other interest expense and floorplan interest expense 17.8 13.3 Short-term lease cost (1) Selling, general, and administrative expenses 11.3 10.6 Variable lease cost Selling, general, and administrative expenses 12.0 10.5 Sublease income Selling, general, and administrative expenses (3.6) (3.6) Net lease cost $ 124.4 $ 107.7 (1) Includes leases with a term of one month or less. Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 61.4 $ 56.8 Operating cash flows from finance leases (1) $ 63.7 $ 36.2 Financing cash flows from finance leases $ 12.3 $ 11.3 Supplemental noncash information on adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new: Operating lease liabilities $ 111.7 $ 78.7 Finance lease liabilities $ 54.7 $ 90.8 (1) Includes the interest component of payments made on finance leases as well as principal payments on vehicle floorplan payables with trade lenders for certain service loaner vehicle leases. Maturity of Lease Liabilities Operating Leases Finance Leases Year ending December 31, 2024 $ 58.1 $ 59.8 2025 58.0 83.0 2026 53.4 24.1 2027 50.6 25.3 2028 47.3 25.0 Thereafter 304.5 284.1 Total lease payments 571.9 501.3 Less: interest (167.5) (104.8) Present value of lease liabilities $ 404.4 $ 396.5 |
Debt
Debt | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Debt | DEBT Non-Vehicle Long-Term Debt Non-vehicle long-term debt at December 31 consisted of the following: Debt Description Maturity Date Interest Payable 2023 2022 3.5% Senior Notes November 15, 2024 May 15 and November 15 $ 450.0 $ 450.0 4.5% Senior Notes October 1, 2025 April 1 and October 1 450.0 450.0 3.8% Senior Notes November 15, 2027 May 15 and November 15 300.0 300.0 1.95% Senior Notes August 1, 2028 February 1 and August 1 400.0 400.0 4.75% Senior Notes June 1, 2030 June 1 and December 1 500.0 500.0 2.4% Senior Notes August 1, 2031 February 1 and August 1 450.0 450.0 3.85% Senior Notes March 1, 2032 March 1 and September 1 700.0 700.0 Revolving credit facility July 18, 2028 Monthly — — Finance leases and other debt Various dates through 2041 362.2 375.5 3,612.2 3,625.5 Less: unamortized debt discounts and debt issuance costs (21.9) (26.0) Less: current maturities (462.4) (12.6) Long-term debt, net of current maturities $ 3,127.9 $ 3,586.9 At December 31, 2023, aggregate maturities of non-vehicle long-term debt were as follows: Year Ending December 31: 2024 $ 462.1 2025 518.9 2026 13.9 2027 315.8 2028 416.2 Thereafter 1,885.3 $ 3,612.2 Debt Refinancing Transaction On July 18, 2023, we amended and restated our unsecured credit agreement to, among other things, (1) increase the revolving credit facility (the “facility”) commitment from $1.8 billion to $1.9 billion, (2) extend the maturity date of the facility to July 18, 2028, (3) allow for the maximum leverage ratio covenant to increase from 3.75x to 4.25x for four fiscal quarters in the event that we complete a material acquisition, and (4) replace the maximum capitalization ratio covenant with a minimum interest coverage ratio covenant. Senior Unsecured Notes and Credit Agreement Our 3.5% Senior Notes due 2024 will mature on November 15, 2024, and were, therefore, reclassified to current during the fourth quarter of 2023. The interest rates payable on our 3.5% Senior Notes, 4.5% Senior Notes, 3.8% Senior Notes, and 4.75% Senior Notes are subject to adjustment upon the occurrence of certain credit rating events as provided in the indentures for these senior unsecured notes. Under our amended and restated credit agreement, we have a $1.9 billion revolving credit facility that matures on July 18, 2028. The credit agreement also contains an accordion feature that allows us, subject to credit availability and certain other conditions, to increase the amount of the revolving credit facility, together with any added term loans, by up to $500.0 million in the aggregate. As of December 31, 2023, we had no borrowings outstanding under our revolving credit facility. We have a $200.0 million letter of credit sublimit as part of our revolving credit facility. The amount available to be borrowed under the revolving credit facility is reduced on a dollar-for-dollar basis by the cumulative amount of any outstanding letters of credit, which was $0.8 million at December 31, 2023, leaving an additional borrowing capacity under the revolving credit facility of $1.9 billion at December 31, 2023. Our revolving credit facility under the amended credit agreement provides for a commitment fee on undrawn amounts ranging from 0.125% to 0.20% and interest on borrowings at SOFR plus a credit spread adjustment of 0.10% or the base rate, in each case plus an applicable margin. The applicable margin ranges from 1.125% to 1.50% for SOFR borrowings and 0.125% to 0.50% for base rate borrowings. The interest rate charged for our revolving credit facility is affected by our leverage ratio. Within the meaning of Regulation S-X, Rule 3-10, AutoNation, Inc. (the parent company) has no independent assets or operations. If guarantees of our subsidiaries were to be issued under our existing registration statement, we expect that such guarantees would be full and unconditional and joint and several, and any subsidiaries other than the guarantor subsidiaries would be minor. Other Long-Term Debt At December 31, 2023, we had finance leases and other debt obligations of $362.2 million, which are due at various dates through 2041. See Note 9 of the Notes to Consolidated Financial Statements for more information related to finance lease obligations. Commercial Paper We have a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes on a private placement basis. On August 16, 2023, we increased the maximum aggregate principal amount that may be outstanding at any time under the commercial paper program from $1.0 billion to $1.9 billion. The interest rate for the commercial paper notes varies based on duration and market conditions. The maturities of the commercial paper notes may vary, but may not exceed 397 days from the date of issuance. Proceeds from the issuance of commercial paper notes are used to repay borrowings under the revolving credit facility, to finance acquisitions, and for strategic initiatives, working capital, capital expenditures, share repurchases, and/or other general corporate purposes. We plan to use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. A downgrade in our credit ratings could negatively impact our ability to issue, or the interest rates for, commercial paper notes. At December 31, 2023, we had $440.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 5.9% and a weighted-average remaining term of 6 days. At December 31, 2022, we had $50.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 4.3% and a weighted-average remaining term of one day. Non-Recourse Debt Non-recourse debt relates to auto loans receivable of our captive auto finance company funded through non-recourse funding facilities, including warehouse facilities and asset-backed term funding transactions. We have two warehouse facility agreements with certain banking institutions through wholly-owned, bankruptcy-remote, special purpose entities, primarily to finance the purchase and origination of auto loans receivable. We fund auto loans receivable through these warehouse facilities, which are secured by the eligible auto loans receivable pledged as collateral. Additionally, we have term securitizations that were put in place to provide long-term funding for certain auto loans receivable initially funded through the warehouse facilities. In these transactions, a pool of auto loans receivable is sold to a bankruptcy-remote, special purpose entity that, in turn, transfers the receivables to a special purpose securitization trust (“term securitization trust”). The term securitization trust issues asset-backed securities, secured or otherwise supported by the transferred receivables, and the proceeds from the sale of the asset-backed securities are used to finance the securitized receivables. We are required to evaluate the term securitization trusts for consolidation. We retain the servicing rights for the auto loans receivable that were funded through the term securitizations. In our capacity as servicer of the underlying auto loans receivable, we have the power to direct the activities of the trusts that most significantly impact the economic performance of the trusts. In addition, we have the obligation to absorb losses (subject to limitations) and the rights to receive any returns of the trusts, which could be significant. Accordingly, we are the primary beneficiary of the trusts and are required to consolidate them. We recognize transfers of auto loans receivable into the warehouse facilities and term securitizations (together, “non-recourse debt”) as secured borrowings, which result in recording the auto loans receivable and the related non-recourse debt on our Consolidated Balance Sheets. The non-recourse debt is structured to legally isolate the auto loans receivable, which can only be used as collateral to settle obligations of the related non-recourse debt. The term securitization trusts and investors and the creditors of the warehouse facilities have no recourse to our assets for payment of the debt beyond the related receivables, the amounts on deposit in reserve accounts, and the restricted cash from collections on auto loans receivable. Non-recourse debt outstanding at December 31, 2023, and December 31, 2022 consisted of the following: 2023 2022 Warehouse facilities $ 209.4 $ 181.8 Term securitization debt of consolidated VIEs 50.5 146.9 259.9 328.7 Less: unamortized debt discounts and debt issuance costs (1.5) (5.1) Less: current maturities (8.8) (10.7) Non-recourse debt, net of current maturities $ 249.6 $ 312.9 The timing of principal payments on the non-recourse debt is based on the timing of principal collections and defaults on the related auto loans receivable. The current portion of non-recourse debt represents the portion of the payments received from the auto loans receivable that are due to be distributed as principal payments on the non-recourse debt in the following period. We generally enter into warehouse facility agreements for one-year terms and typically renew the agreements annually. One of the warehouse facilities matures on October 1, 2024. In January 2024, we renewed the other warehouse facility to extend the maturity date to January 31, 2025. Aggregate commitments under the warehouse facilities total $400.0 million. The term securitization debt of consolidated VIEs consists of various notes with interest rates ranging from 1.49% to 4.45% and maturity dates ranging from August 2026 to May 2028. Term securitization debt is expected to become due and be paid prior to the final legal maturities based on amortization of the auto loans receivable pledged as collateral. The term securitization agreements require certain funds to be held in restricted cash accounts to provide additional collateral for the borrowings or to be applied to make payments on the securitization debt. Restricted cash of consolidated VIEs under the various term securitization agreements totaled $4.3 million as of December 31, 2023, and $14.9 million as of December 31, 2022, and is included in Other Current Assets and Other Assets in our Consolidated Balance Sheets. Auto loans receivable pledged to the term securitization debt of consolidated VIEs totaled $50.8 million as of December 31, 2023, and $151.4 million as of December 31, 2022. |
Chargeback Liability
Chargeback Liability | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Chargeback Liability | CHARGEBACK LIABILITY We may be charged back for commissions related to financing, vehicle service, or protection products in the event of early termination, default, or prepayment of the contracts by customers (“chargebacks”). However, our exposure to loss generally is limited to the commissions that we receive. An estimated chargeback liability is recorded in the period in which the related finance and insurance revenue is recognized. The following is a rollforward of our estimated chargeback liability for each of the three years presented in our Consolidated Financial Statements: 2023 2022 2021 Balance - January 1 $ 197.0 $ 171.0 $ 142.1 Add: Provisions 168.0 192.3 168.9 Deduct: Chargebacks (164.6) (166.3) (140.0) Balance - December 31 $ 200.4 $ 197.0 $ 171.0 |
Self-Insurance
Self-Insurance | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Self-Insurance | SELF-INSURANCE Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, employee medical benefits, automobile, and workers’ compensation. At December 31, 2023 and 2022, current and long-term self-insurance liabilities were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows: 2023 2022 Self-insurance - current portion $ 42.3 $ 37.6 Self-insurance - long-term portion 60.0 56.9 Total self-insurance liabilities $ 102.3 $ 94.5 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES The components of the income tax provision from continuing operations for the years ended December 31 are as follows: 2023 2022 2021 Current: Federal $ 245.6 $ 368.7 $ 374.2 State 64.9 87.4 78.5 Federal and state deferred 19.0 0.8 (17.2) Change in valuation allowance, net 1.0 0.2 (0.2) Adjustments and settlements (0.5) (1.3) (0.2) Income tax provision $ 330.0 $ 455.8 $ 435.1 A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows: 2023 % 2022 % 2021 % Income tax provision at statutory rate $ 283.5 21.0 $ 385.0 21.0 $ 379.8 21.0 Other non-deductible expenses, net 0.5 — 7.9 0.4 (1.2) (0.1) State income taxes, net of federal benefit 53.4 4.0 72.8 4.0 60.7 3.4 337.4 25.0 465.7 25.4 439.3 24.3 Change in valuation allowance, net 1.0 0.1 0.2 — (0.2) — Adjustments and settlements (0.5) — (1.3) (0.1) (0.2) — Federal and state tax credits (2.8) (0.2) (4.5) (0.2) (1.0) — Other, net (5.1) (0.5) (4.3) (0.2) (2.8) (0.2) Income tax provision $ 330.0 24.4 $ 455.8 24.9 $ 435.1 24.1 Deferred income tax asset and liability components at December 31 are as follows: 2023 2022 Deferred income tax assets: Inventory $ 31.9 $ 23.7 Receivable allowances 0.4 12.0 Warranty, chargeback, and self-insurance liabilities 72.6 70.2 Other accrued liabilities 30.7 27.7 Deferred compensation 31.7 26.5 Stock-based compensation 9.0 7.7 Lease liabilities 162.9 148.9 Loss carryforwards— federal and state 22.7 5.8 Other, net 20.9 11.5 Total deferred income tax assets 382.8 334.0 Valuation allowance (7.1) (4.6) Deferred income tax assets, net of valuation allowance 375.7 329.4 Deferred income tax liabilities: Long-lived assets (intangible assets and property) (298.7) (258.4) Investments - unrealized appreciation (2.8) (1.6) Right-of-use assets (150.2) (137.2) Other, net (9.0) (8.7) Total deferred income tax liabilities (460.7) (405.9) Net deferred income tax liabilities $ (85.0) $ (76.5) Our net deferred tax liability of $85.0 million as of December 31, 2023, and $76.5 million as of December 31, 2022, is classified as Deferred Income Taxes in the accompanying Consolidated Balance Sheets. Income taxes receivable included in Receivables, net totaled $11.1 million at December 31, 2023 and $20.2 million at December 31, 2022. At December 31, 2023, we had $63.1 million of gross domestic federal net operating loss carryforward, $161.2 million of gross domestic state net operating loss carryforwards and capital loss carryforwards, and $1.2 million of state tax credits. The federal net operating loss and $30.7 million of gross domestic state net operating loss carryforwards have no expiration. The state tax credits and $130.5 million of gross domestic state net operating loss carryforwards expire from 2024 through 2043. The federal and state loss carryforwards and state tax credits result in a deferred tax asset of $22.7 million. In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We provide valuation allowances to offset portions of deferred tax assets due to uncertainty surrounding the future realization of such deferred tax assets. At December 31, 2023, we had $7.1 million of valuation allowance related to state net operating loss carryforwards. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized. We file income tax returns in the U.S. federal jurisdiction and various states. As a matter of course, various taxing authorities, including the IRS, regularly audit us. These audits may culminate in proposed assessments which may ultimately result in our owing additional taxes. With few exceptions, we are no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years before 2019. Currently, no tax years are under examination by the IRS and tax years from 2019 to 2021 are under examination by U.S. state jurisdictions. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters. A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2023 2022 2021 Balance at January 1 $ 5.5 $ 6.9 $ 7.0 Additions based on tax positions related to the current year — — — Additions for tax positions of prior years 1.2 0.6 0.8 Reductions for tax positions of prior years — — — Reductions for expirations of statute of limitations (1.6) (1.4) (0.9) Settlements — (0.6) — Balance at December 31 $ 5.1 $ 5.5 $ 6.9 We had accumulated interest and penalties associated with these unrecognized tax benefits of $10.7 million at December 31, 2023, $9.6 million at December 31, 2022, and $9.1 million at December 31, 2021. We additionally had a deferred tax asset of $3.6 million at December 31, 2023, $3.4 million at December 31, 2022, and $3.6 million at December 31, 2021, related to these balances. The net of the unrecognized tax benefits, associated interest, penalties, and deferred tax asset was $12.2 million at December 31, 2023, $11.7 million at December 31, 2022, and $12.4 million at December 31, 2021, which if resolved favorably (in whole or in part) would reduce our effective tax rate. The unrecognized tax benefits, associated interest, penalties, and deferred tax asset are included as components of Other Liabilities and Deferred Income Taxes in the Consolidated Balance Sheets. It is our policy to account for interest and penalties associated with income tax obligations as a component of income tax expense. We recognized $0.8 million during 2023, $0.4 million during 2022, and $0.6 million during 2021 (each net of tax effect), of interest and penalties as part of the provision for income taxes in the Consolidated Statements of Income. We do not expect any increase or decrease to our unrecognized tax benefits to have a material impact on our consolidated financial statements during the twelve months beginning January 1, 2024. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | SHAREHOLDERS’ EQUITY A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows: 2023 2022 2021 Shares repurchased 6.4 15.6 22.3 Aggregate purchase price (1) $ 863.6 $ 1,710.2 $ 2,303.2 Average purchase price per share $ 134.68 $ 109.86 $ 103.18 (1) 2023 excludes excise tax accrual imposed under the Inflation Reduction Act of $8.1 million. As of December 31, 2023, $320.8 million remained available under our stock repurchase limit most recently authorized by our Board of Directors. Our Board of Directors authorized the retirement of 23.0 million and 16.0 million shares of our treasury stock in November 2022 and April 2021, respectively, which assumed the status of authorized but unissued shares. Upon the retirement of treasury stock, it is our policy to charge the excess of the cost of the treasury stock over its par value entirely to additional paid-in capital. Any amounts exceeding additional paid-in capital are charged to retained earnings. These retirements had the effect of reducing treasury stock and issued common stock, which includes treasury stock. Our common stock, additional paid-in capital, retained earnings, and treasury stock accounts were adjusted accordingly. There was no impact to shareholders’ equity or outstanding common stock. We have 5.0 million authorized shares of preferred stock, par value $0.01 per share, none of which are issued or outstanding. The Board of Directors has the authority to issue the preferred stock in one or more series and to establish the rights, preferences, and dividends of such preferred stock. A summary of shares of common stock issued in connection with the exercise of stock options follows: 2023 2022 2021 Shares issued (in actual number of shares) 37,996 71,030 1,025,673 Proceeds from the exercise of stock options $ 1.9 $ 3.4 $ 54.5 Average exercise price per share $ 50.34 $ 47.94 $ 53.13 The following table presents a summary of shares of common stock issued in connection with the settlement of RSUs, as well as shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the settlement of RSUs: 2023 2022 2021 Shares issued 0.6 0.8 0.7 Shares surrendered to AutoNation to satisfy tax withholding obligations 0.2 0.3 0.2 |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation | STOCK-BASED COMPENSATION The AutoNation, Inc. 2017 Employee Equity and Incentive Plan (the “2017 Plan”) provides for the grant of RSUs, restricted stock, stock options, stock appreciation rights, and other stock-based and cash-based awards to employees. A maximum of 5.5 million shares may be issued under the 2017 Plan. The AutoNation, Inc. 2014 Non-Employee Director Equity Plan (the “2014 Director Plan”) provides for the grant of stock options, restricted stock, RSUs, stock appreciation rights, and other stock-based awards to our non-employee directors. As of December 31, 2023, the maximum number of shares authorized for issuance under the 2014 Director Plan was 600,000. Restricted Stock Units On January 3, 2023, each of our non-employee directors received a grant of 2,331 RSUs un der the 2014 Director Plan. RSUs granted to our non-employee directors are fully vested on the grant date and are settled in shares of the Company’s common stock on the first trading day of February in the third year following the grant date, unless the non-employee director elects to defer delivery in accordance with the terms of the award and the 2014 Director Plan. Settlement of the RSUs will be accelerated in certain circumstances as provided in the terms of the award and the 2014 Director Plan, including in the event the non-employee director ceases to serve as a non-employee director of the Company. Compensation cost is recognized on the grant date and is based on the closing price of our common stock on the grant date. In 2023, our Board’s Compensation Committee approved the grant to employees of 0.4 million RSUs including time-based RSUs, performance-based RSUs, and market-based RSUs. We account for forfeitures of stock-based awards as they occur. Time-based RSUs vest in equal installments generally over three Performance-based RSUs cliff vest after three years subject to the achievement of certain performance goals over a three-year period. Performance-based RSUs granted prior to 2023 include a measure of earnings, a measure of return on invested capital, and a measure of our performance relative to certain customer satisfaction indices. Performance-based RSUs granted in 2023 include a measure of return on invested capital. The fair value of each performance-based RSU is based on the closing price of our common stock on the date of grant. Compensation cost for performance-based RSUs is based on the expected achievement level of the performance goals, which is evaluated over the performance period, and recognized on a straight-line basis over the shorter of the stated vesting period or the period until employees become retirement-eligible. Beginning in 2023, we granted market-based RSUs that cliff vest after three years subject to a measure of total shareholder return over a three-year period relative to the shareholder return for a predefined group of companies. The fair value of each market-based RSU is based on a Monte Carlo simulation model on the date of grant using the following assumptions: 2023 Risk-free interest rate 4.60 % Expected volatility 42.89 % Dividend yield — Compensation cost for market-based RSUs is recognized on a straight-line basis over the shorter of the stated vesting period or the period until employees become retirement-eligible, regardless of whether the market condition is satisfied. The following table summarizes information about vested and nonvested RSUs for 2023: RSUs Shares Weighted-Average Nonvested at January 1 1.2 $ 75.14 Granted 0.4 $ 139.11 Vested (0.5) $ 60.40 Forfeited (0.1) $ 112.36 Nonvested at December 31 1.0 $ 108.26 The weighted average grant-date fair value of RSUs and total fair value of RSUs vested are summarized in the following table: 2023 2022 2021 Weighted average grant-date fair value of RSUs granted $ 139.11 $ 112.66 $ 85.45 Total fair value of RSUs vested (in millions) $ 76.0 $ 85.7 $ 51.8 The following table summarizes the total stock-based compensation expense related to RSUs recognized in Selling, General, and Administrative Expenses in the Consolidated Statements of Income and the total recognized tax benefit related thereto: 2023 2022 2021 Stock-based compensation expense $ 39.7 $ 31.5 $ 35.0 Tax benefit related to stock-based compensation expense $ 4.5 $ 4.0 $ 2.4 Tax benefits related to vesting of RSUs and stock options exercised were $9.0 million in 2023, $9.7 million in 2022, and $17.2 million in 2021. As of December 31, 2023, there was $37.4 million of total unrecognized compensation cost related to non-vested RSUs, which is expected to be recognized over a weighted average period of 1.51 years. Stock Options Prior to 2017, we granted non-qualified stock options with a term of 10 years from the date of grant that vested in equal installments over four years. All stock options were fully vested as of December 31, 2020. The intrinsic value of stock options exercised was $3.5 million during 2023, $5.0 million during 2022, and $51.2 million during 2021. As of December 31, 2023, we had 20,994 stock options outstanding with a weighted average exercise price of $56.43 and weighted average contractual term of 1.76 years. |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Acquisitions | ACQUISITIONS During 2023, we acquired RepairSmith, a mobile solution for automotive repair and maintenance, and we also purchased seven stores. Acquisitions are included in the Consolidated Financial Statements from the date of acquisition. The purchase price allocations for these business combinations are preliminary and subject to final adjustments, primarily related to the valuation of working capital and residual goodwill. During the fourth quarter of 2022, we acquired four stores and CIG Financial, an auto finance company. These acquisitions were not material to our financial condition or results of operations. Additionally, on a pro forma basis as if the results of these acquisitions had been included in our consolidated results for the full year ended December 31, 2023 and 2022, revenue and net income would not have been materially different from our reported revenue and net income for these periods. During 2021, we purchased 20 stores and 4 collision centers. From each acquisition date to December 31, 2021, the amounts of revenue and earnings of the stores and collision centers acquired during 2021 included in our Consolidated Statements of Income for the year ended December 31, 2021, were $176.9 million and $6.9 million, respectively. Our supplemental pro forma revenue and net income from continuing operations had the acquisition dates been January 1, 2020 are as follows: Unaudited supplemental pro forma: 2021 Revenue $ 26,544.2 Net income from continuing operations $ 1,407.0 |
Store Divestitures
Store Divestitures | 12 Months Ended |
Dec. 31, 2023 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Divestitures | DIVESTITURES During 2023, we divested one store. During 2022, we divested three stores and terminated two franchises. During 2021, we divested three stores and 18 collision centers. Other (Income) Expense, Net (within Operating Income) |
Financial Instruments and Fair
Financial Instruments and Fair Value Measurements | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments and Fair Value Measurements | FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of judgment, and therefore cannot be determined with precision. Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value: Level 1 Quoted prices (unadjusted) in active markets for identical assets or liabilities that a reporting entity can access at the measurement date Level 2 Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly Level 3 Unobservable inputs The following methods and assumptions were used by us in estimating fair value disclosures for financial instruments: • Cash and cash equivalents, receivables, other current assets, vehicle floorplan payable, accounts payable, other current liabilities, commercial paper, warehouse credit facilities, and variable rate debt: The amounts reported in the accompanying Consolidated Balance Sheets approximate fair value due to their short-term nature or the existence of variable interest rates that approximate prevailing market rates. • Auto loans receivable, net : Auto loans receivable are presented net of an allowance for expected credit losses, which we believe approximates fair value. • Investments in Equity Securities: Our equity investments with readily determinable fair values are measured at fair value using Level 1 inputs. The fair value of our equity investments with readily determinable fair values totaled $22.8 million at December 31, 2023, and $15.4 million at December 31, 2022. Our equity investment that does not have a readily determinable fair value is measured using the measurement alternative as permitted by accounting standards and was recorded at cost, to be subsequently adjusted for observable price changes. The carrying amount of our equity investment without a readily determinable fair value was $56.7 million at December 31, 2023, and $56.7 million at December 31, 2022. This equity investment reflects a cumulative upward adjustment of $3.4 million based on an observable price change that occurred in the second quarter of 2021. We did not record any upward adjustments during the year ended December 31, 2023. Additionally, we have not recorded any impairments or downward adjustments to the carrying amounts of our equity investment as of and for the year ended December 31, 2023. Investments in equity securities are reported in Other Current Assets and Other Assets in the accompanying Consolidated Balance Sheets. Realized and unrealized gains and losses are reported in Other Income (Loss), Net (non-operating) in the Consolidated Statements of Income and in the “Corporate and other” category of our segment information. The following is the portion of unrealized gains recognized during the years ended December 31, 2023 and 2022, related to equity securities still held at December 31: 2023 2022 Net gains recognized during the period on equity securities $ 5.2 $ 2.9 Less: Net gains recognized during the period on equity securities sold during the period — — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 5.2 $ 2.9 • Fixed rate long-term debt: Our fixed rate long-term debt consists primarily of amounts outstanding under our senior unsecured notes. We estimate the fair value of our senior unsecured notes using quoted prices for the identical liability (Level 1). A summary of the aggregate carrying values and fair values of our senior unsecured notes at December 31 is as follows: 2023 2022 Carrying value $ 3,228.1 $ 3,224.0 Fair value $ 2,979.3 $ 2,803.6 Nonfinancial assets such as goodwill, other intangible assets, and long-lived assets held and used, are measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized or for a business combination. The fair values less costs to sell of long-lived assets or disposal groups held for sale are assessed each reporting period they remain classified as held for sale. Subsequent changes in the held for sale long-lived asset’s or disposal group’s fair value less cost to sell (increase or decrease) are reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset or disposal group at the time it was initially classified as held for sale. The following table presents assets measured and recorded at fair value on a nonrecurring basis during the years ended December 31, 2023 and 2022: 2023 2022 Description Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Gain/(Loss) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Gain/(Loss) Other intangible assets $ — $ (2.3) $ — $ — Long-lived assets held and used $ — $ (2.9) $ — $ (1.6) Goodwill and Other Intangible Assets Goodwill for our reporting units and our indefinite-lived intangible assets are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may exist. Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives. Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment for our annual impairment testing as of April 30, 2023, 2022, and 2021 and we determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts. We elected to perform quantitative franchise rights impairment tests as of April 30, 2023, 2022, and 2021 and no impairment charges resulted from these quantitative tests. The quantitative impairment test for franchise rights requires the comparison of the franchise rights’ estimated fair value to carrying value by store. Fair values of rights under franchise agreements are estimated using Level 3 inputs by discounting expected future cash flows of the store. The forecasted cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates, margins, working capital requirements, capital expenditures, and cost of capital, for which we utilize certain market participant-based assumptions, using third-party industry projections, economic projections, and other marketplace data we believe to be reasonable. The non-cash impairment charge for other intangible assets is related to the write-off of certain finite-lived intangible assets that we ceased using during the year and is included in Other (Income) Expense, Net Long-Lived Assets and Right-of-Use Assets Fair value measurements for our long-lived assets and right-of-use assets are based on Level 3 inputs. Changes in fair value measurements are reviewed and assessed each quarter for properties classified as held for sale, or when an indicator of impairment exists for properties classified as held and used or for right-of-use assets. The valuation process is generally based on a combination of the market and replacement cost approaches. In certain cases, fair value measurements are based on pending agreements to sell the related assets. In a market approach, we use transaction prices for comparable properties that have recently been sold. These transaction prices are adjusted for factors related to a specific property. We evaluate changes in local real estate markets, and/or recent market interest or negotiations related to a specific property. In a replacement cost approach, the cost to replace a specific long-lived asset is considered, which is adjusted for depreciation from physical deterioration, as well as functional and economic obsolescence, if present and measurable. To validate the fair values determined under the valuation process noted above, we also obtain independent third-party appraisals for our properties and/or third-party brokers’ opinions of value, which are generally developed using the same valuation approaches described above, and we evaluate any recent negotiations or discussions with third-party real estate brokers related to a specific long-lived asset or market. The non-cash impairment charges related to long-lived assets held and used are included in Other (Income) Expense, Net We had assets held for sale in continuing operations of $21.3 million as of December 31, 2023 and $5.7 million as of December 31, 2022 related to property held for sale, as well as inventory, goodwill, and property of disposal groups held for sale. We had no assets held for sale in discontinued operations of December 31, 2023, and $1.1 million as of December 31, 2022, related to property held for sale. Assets held for sale are included in Other Current Assets in our Consolidated Balance Sheets. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments And Contingencies | COMMITMENTS AND CONTINGENCIES Legal Proceedings We are involved, and will continue to be involved, in numerous legal proceedings arising out of the conduct of our business, including litigation with customers, third-party dealers, wage and hour and other employment-related lawsuits, and actions brought by governmental authorities. Some of these lawsuits purport or may be determined to be class or collective actions and seek substantial damages or injunctive relief, or both, and some may remain unresolved for several years. We establish accruals for specific legal proceedings when it is considered probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Our accruals for loss contingencies are reviewed quarterly and adjusted as additional information becomes available. We disclose the amount accrued if material or if such disclosure is necessary for our financial statements to not be misleading. If a loss is not both probable and reasonably estimable, or if an exposure to loss exists in excess of the amount accrued, we assess whether there is at least a reasonable possibility that a loss, or additional loss, may have been incurred. If there is a reasonable possibility that a loss, or additional loss, may have been incurred, we disclose the estimate of the possible loss or range of loss if it is material or a statement that such an estimate cannot be made. Our evaluation of whether a loss is reasonably possible or probable is based on our assessment and consultation with legal counsel regarding the ultimate outcome of the matter. As of December 31, 2023 and 2022, we have accrued for the potential impact of loss contingencies that are probable and reasonably estimable, and there was no indication of a reasonable possibility that a material loss, or additional material loss, may have been incurred. We do not believe that the ultimate resolution of any of these matters will have a material adverse effect on our results of operations, financial condition, or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our results of operations, financial condition, or cash flows. Other Matters AutoNation, acting through its subsidiaries, is the lessee under many real estate leases that provide for the use by our subsidiaries of their respective dealership premises. Pursuant to these leases, we agree to indemnify the lessor and other related parties from certain liabilities arising as a result of the use of the leased premises, including environmental liabilities, or a breach of the lease by the lessee. Additionally, from time to time, we enter into agreements with third parties in connection with the sale of assets or businesses in which we agree to indemnify the purchaser or related parties from certain liabilities or costs arising in connection with the assets or business. Also, in the ordinary course of business in connection with purchases or sales of goods and services, we enter into agreements that may contain indemnification provisions. In the event that an indemnification claim is asserted, our liability would be limited by the terms of the applicable agreement. From time to time, primarily in connection with dispositions of automotive stores, we assign or sublet to the store purchaser our interests in any real property leases associated with such stores. In general, we retain responsibility for the performance of certain obligations under such leases to the extent that the assignee or sublessee does not perform, whether such performance is required prior to or following the assignment or subletting of the lease. Additionally, we generally remain subject to the terms of any guarantees made by us in connection with such leases. We generally have indemnification rights against the assignee or sublessee in the event of non-performance under these leases, as well as certain defenses. We presently have no reason to believe that we will be called on to perform under any such remaining assigned leases or subleases. We estimate that lessee rental payment obligations during the remaining terms of these leases with expirations ranging from 2024 to 2034 are approximately $5 million at December 31, 2023. There can be no assurance that any performance required of us under these leases would not have a material adverse effect on our business, financial condition, and cash flows. At December 31, 2023, surety bonds, letters of credit, and cash deposits totaled $142.2 million, of which $0.8 million were letters of credit. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance. We do not currently provide cash collateral for outstanding letters of credit. In the ordinary course of business, we are subject to numerous laws and regulations, including automotive, environmental, health and safety, and other laws and regulations. We do not anticipate that the costs of such compliance will have a material adverse effect on our business, results of operations, cash flows, or financial condition, although such outcome is possible given the nature of our operations and the extensive legal and regulatory framework applicable to our business. We do not have any material known environmental commitments or contingencies. |
Business and Credit Concentrati
Business and Credit Concentrations | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Business And Credit Concentrations | BUSINESS AND CREDIT CONCENTRATIONS We own and operate franchised automotive stores in the United States pursuant to franchise agreements with vehicle manufacturers. In 2023, approximately 63% of our total revenue was generated by our stores in Florida, Texas, and California. Franchise agreements generally provide the manufacturers or distributors with considerable influence over the operations of the store. The success of any franchised automotive dealership is dependent, to a large extent, on the financial condition, management, marketing, production, and distribution capabilities of the vehicle manufacturers or distributors of which we hold franchises. We had receivables from manufacturers or distributors of $240.5 million at December 31, 2023, and $174.4 million at December 31, 2022. Additionally, a large portion of our Contracts-in-Transit included in Receivables, net, in the accompanying Consolidated Balance Sheets, are due from automotive manufacturers’ captive finance subsidiaries which provide financing directly to our new and used vehicle customers. We purchase substantially all of our new vehicles from various manufacturers or distributors at the prevailing prices available to all franchised dealers. Additionally, we finance a large portion of our new vehicle inventory with automotive manufacturers’ captive finance subsidiaries. Our sales volume could be adversely impacted by the manufacturers’ or distributors’ inability to supply the stores with an adequate supply of vehicles and related financing. We are subject to a concentration of risk, and our business could be materially adversely impacted by the financial distress, including bankruptcy, of or other adverse event related to a major vehicle manufacturer or related lender or supplier. The core brands of vehicles that we sell, representing approximately 88% of the new vehicles that we sold in 2023, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, BMW, Mercedes-Benz, Stellantis, and Volkswagen (including Audi and Porsche). Concentrations of credit risk with respect to non-manufacturer trade receivables are limited due to the wide variety of customers and markets in which our products are sold as well as their dispersion across many different geographic areas in the United States. Consequently, at December 31, 2023, we do not consider AutoNation to have any significant non-manufacturer concentrations of credit risk. |
Segment Information
Segment Information | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Information | SEGMENT INFORMATION At December 31, 2023, we had three reportable segments: (1) Domestic, (2) Import, and (3) Premium Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Ford, General Motors, and Stellantis. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, Hyundai, Subaru, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, Lexus, Audi, and Jaguar Land Rover. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products. “Corporate and other” is comprised of our other businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, auction operations, our mobile automotive repair and maintenance business, and our auto finance company, all of which do not meet the quantitative thresholds for reportable segments, as well as unallocated corporate overhead expenses and other income items. The reportable segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by our chief operating decision maker to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer. The following tables provide information on revenues from external customers, segment income of our reportable segments, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures. Year Ended December 31, 2023 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,573.2 $ 7,880.9 $ 10,266.4 $ 1,228.4 $ 26,948.9 Floorplan interest expense $ 57.3 $ 21.5 $ 53.9 $ 12.0 $ 144.7 Depreciation and amortization $ 43.6 $ 39.2 $ 76.9 $ 60.8 $ 220.5 Segment income (loss) (1) $ 415.4 $ 635.0 $ 836.5 $ (379.7) $ 1,507.2 Capital expenditures (2) $ 102.0 $ 106.6 $ 69.4 $ 138.0 $ 416.0 Segment assets $ 2,507.7 $ 2,034.6 $ 3,506.8 $ 3,930.9 $ 11,980.0 Year Ended December 31, 2022 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,987.5 $ 7,690.3 $ 10,278.1 $ 1,029.1 $ 26,985.0 Floorplan interest expense $ 14.4 $ 4.8 $ 15.0 $ 7.2 $ 41.4 Depreciation and amortization $ 39.1 $ 35.6 $ 74.9 $ 50.7 $ 200.3 Segment income (loss) (1) $ 565.3 $ 734.2 $ 969.1 $ (285.5) $ 1,983.1 Capital expenditures (2) $ 32.8 $ 70.1 $ 126.5 $ 106.8 $ 336.2 Segment assets $ 1,974.3 $ 1,555.6 $ 2,996.8 $ 3,533.0 $ 10,059.7 Year Ended December 31, 2021 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,959.9 $ 7,798.5 $ 9,229.9 $ 855.7 $ 25,844.0 Floorplan interest expense $ 7.9 $ 5.1 $ 8.8 $ 3.9 $ 25.7 Depreciation and amortization $ 39.3 $ 33.9 $ 64.8 $ 55.3 $ 193.3 Segment income (loss) (1) $ 595.8 $ 714.7 $ 837.4 $ (270.8) $ 1,877.1 Capital expenditures (2) $ 15.5 $ 27.1 $ 80.0 $ 109.3 $ 231.9 Segment assets $ 1,758.5 $ 1,424.2 $ 2,668.6 $ 3,092.3 $ 8,943.6 (1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. (2) Includes accrued construction in progress and excludes property associated with leases entered during the year. The following is a reconciliation of the total of the reportable segments’ revenue and segment income to our consolidated revenue and income from continuing operations before income taxes, respectively. Years Ended December 31, 2023 2022 2021 Total external revenues for reportable segments $ 25,720.5 $ 25,955.9 $ 24,988.3 Corporate and other revenues 1,228.4 1,029.1 855.7 Total consolidated revenues $ 26,948.9 $ 26,985.0 $ 25,844.0 Years Ended December 31, 2023 2022 2021 Total segment income for reportable segments $ 1,886.9 $ 2,268.6 $ 2,147.9 Corporate and other (379.7) (285.5) (270.8) Other interest expense (181.4) (134.9) (93.0) Other income (loss), net 24.4 (14.7) 24.3 Income from continuing operations before income taxes $ 1,350.2 $ 1,833.5 $ 1,808.4 |
Multiemployer Pension Plans
Multiemployer Pension Plans | 12 Months Ended |
Dec. 31, 2023 | |
Multiemployer Plan [Abstract] | |
Multiemployer Pension Plans | MULTIEMPLOYER PENSION PLANS Five of our 252 stores participate in multiemployer pension plans. We contribute to these multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects: a. Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers. b. If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be assumed by the remaining participating employers. c. If we choose to stop participating in a multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan, subject to certain limits, referred to as a withdrawal liability. Both of the multiemployer pension plans in which we participate are designated as being in “red zone” status, as defined by the Pension Protection Act (PPA) of 2006. Our participation in these plans for the year ended December 31, 2023, is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (EIN) and the three-digit plan number. The most recent PPA zone status available in 2023 and 2022 is based on information that we received from the plans and is certified by each plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The last column lists the expiration date of the collective-bargaining agreements to which the plans are subject. A rehabilitation plan has been implemented for each plan. There have been no significant changes that affect the comparability of 2023, 2022, and 2021 contributions. Pension Protection Act Zone Status Contributions of AutoNation ($ in millions) (1) Expiration Date of Collective-Bargaining Agreement Pension Fund EIN/Pension Plan Number 2023 2022 2023 2022 2021 Surcharge Imposed (2) Automotive Industries Pension Plan 94-1133245 - 001 Red Red $ 1.2 $ 1.3 $ 1.2 Yes (3) IAM National Pension Fund 51-6031295- 002 Red Red 0.2 0.2 0.2 Yes (4) Other funds 0.1 0.1 0.1 Total contributions $ 1.5 $ 1.6 $ 1.5 (1) Our stores were not listed in the Automotive Industries Pension Plan’s or IAM National Pension Fund’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2022 or 2021. (2) We paid surcharges to the Automotive Industries Pension Plan of $0.6 million, $0.6 million, and $0.5 million in 2023, 2022, and 2021 respectively. Surcharges to the IAM National Pension Fund were de minimis. (3) We are party to three collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan with expiration dates of April 30, 2024, May 31, 2024, and December 31, 2025. (4) We are party to two collective-bargaining agreements that require contributions to the IAM National Pension Fund. Both agreements have an expiration date of August 31, 2025. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net Income (Loss) Attributable to Parent | $ 1,021.1 | $ 1,377.4 | $ 1,373 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Description of Business and S_2
Description of Business and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The accompanying Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries. All of our automotive dealership subsidiaries are indirectly wholly owned by the parent company, AutoNation, Inc. Intercompany accounts and transactions have been eliminated in the consolidation. |
Use of Estimates | The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ materially from these estimates. We periodically evaluate estimates and assumptions used in the preparation of the financial statements and make changes on a prospective basis when adjustments are necessary. Such estimates and assumptions affect, among other things, our goodwill, indefinite-lived intangible asset, and long-lived asset valuations; inventory valuation; equity investment valuation; assets held for sale; assessments of variable consideration and related constraints associated with retrospective commissions; accruals for chargebacks against revenue recognized from the sale of finance and insurance products; accruals related to self-insurance programs; the allowance for expected credit losses; certain legal proceedings; assessment of the annual income tax expense; deferred income taxes and income tax contingencies; and measurement of performance-based compensation costs. |
Cash and Cash Equivalents | We consider all highly liquid investments with a maturity of three months or less as of the date of purchase to be cash equivalents unless the investments are legally or contractually restricted for more than three months. Under our cash management system, outstanding checks that are in excess of the cash balances at certain banks are included in Accounts Payable in the Consolidated Balance Sheets and changes in these amounts are reflected in operating cash flows in the accompanying Consolidated Statements of Cash Flows. |
Inventory | Inventory consists primarily of new and used vehicles held for sale, valued at the lower of cost or net realizable value using the specific identification method. Cost includes acquisition, reconditioning, dealer installed accessories, and transportation expenses. Our new vehicle inventory costs are generally reduced by manufacturer holdbacks (percentage of either the manufacturer’s suggested retail price or invoice price of a new vehicle that the manufacturer repays to the dealer), incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising assistance. Parts, accessories, and other inventory are valued at the lower of cost or net realizable value. |
Auto Loans Receivable | Auto loans receivable include amounts due from customers related to retail vehicle sales financed through our captive auto finance company, as well as retail vehicle installment sales contracts acquired through third-party independent dealers prior to October 2023. Auto loans receivable are presented net of an allowance for expected credit losses. |
Financing and Securitization Transactions | Through wholly-owned, bankruptcy-remote, special purpose entities, we utilize warehouse facilities to fund auto loans receivable originated by our auto finance company. We also have term securitizations that were put in place prior to our acquisition of our captive auto finance company to provide long-term funding for certain auto loans receivable initially funded through the warehouse facilities. In these transactions, a pool of auto loans receivable is sold to a bankruptcy-remote, special purpose entity that, in turn, transfers the receivables to a special purpose securitization trust. The securitization trust issues asset-backed securities, secured or otherwise supported by the transferred receivables, and the proceeds from the sale of the asset-backed securities are used to finance the securitized receivables. We are required to evaluate the term securitization trusts for consolidation. |
Property and Equipment, net | Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. In addition, we capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and depreciated over the estimated useful lives of the assets. Leased property meeting certain criteria is capitalized as a finance lease right-of-use asset and the present value of the related lease payments is recorded as a liability and included in current and/or long-term debt based on the lease term. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in Other (Income) Expense, Net (within Operating Income) in the Consolidated Statements of Income. See Note 7 of the Notes to Consolidated Financial Statements for detailed information about our property and equipment. Depreciation is recorded over the estimated useful lives of the assets involved using the straight-line method. Leasehold improvements and finance lease right-of-use assets are amortized to depreciation expense over the estimated useful life of the asset or the respective lease term used in determining lease classification, whichever is shorter. The range of estimated useful lives is as follows: Buildings and improvements 5 to 40 years Furniture, fixtures, and equipment 3 to 10 years We continually evaluate property and equipment, including leasehold improvements, to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the remaining balance should be evaluated for possible impairment. Such events or changes in circumstances may include a significant decrease in market value, a significant change in the business climate in a particular market, a current expectation that more-likely-than-not a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, or a current-period operating or cash flow loss combined with historical losses or projected future losses. We use an estimate of the related undiscounted cash flows over the remaining life of the asset (asset group) in assessing whether an asset (asset group) is recoverable. If the asset (asset group) is not recoverable, we determine the fair value of the asset (asset group) based on Level 3 inputs, and measure impairment losses based upon the amount by which the carrying amount of the asset (asset group) exceeds the fair value. If we recognize an impairment loss on a depreciable long-lived asset, the adjusted carrying amount of the asset becomes its new cost basis, which is depreciated over the remaining useful life of that asset. |
Goodwill and Other Intangible Assets, net | Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so. Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from three |
Stock-Based Compensation | We grant stock-based awards in the form of time-based, performance-based, and market-based restricted stock units (“RSUs”), which are issued from our treasury stock upon vesting. Compensation cost for time-based and performance-based RSUs is based on the closing price of our common stock on the date of grant. Compensation cost for market-based RSUs is based on the fair value of the award calculated using a Monte Carlo simulation model on the date of grant. |
Insurance | Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, automobile, workers’ compensation, and employee medical benefits. Costs in excess of this retained risk per claim may be insured under various contracts with third-party insurance carriers. We review our claim and loss history on a periodic basis to assist in assessing our future liability. The ultimate costs of these retained insurance risks are estimated by management and by third-party actuarial evaluation of historical claims experience, adjusted for current trends and changes in claims-handling procedures. |
Manufacturer Incentives And Other Rebates | We receive various incentives from manufacturers based on achieving certain objectives, such as specified sales volume targets, as well as other objectives, including maintaining standards of a particular vehicle brand, which may include but are not limited to facility image and design requirements, customer satisfaction survey results, and training standards, among others. These incentives are typically based upon units purchased or sold. These manufacturer incentives are recognized as a reduction of new vehicle cost of sales when earned, generally at the time the related vehicles are sold or upon attainment of the particular program goals, whichever is later. We also receive manufacturer rebates and assistance for holdbacks, floorplan interest, and non-reimbursement-based advertising expenses (described below), which are reflected as a reduction in the carrying value of each vehicle purchased by us. We recognize holdbacks, floorplan interest assistance, non-reimbursement-based advertising rebates, cash incentives, and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold. |
Advertising | We generally expense the cost of advertising as incurred, net of earned manufacturer reimbursements for specific advertising costs and other discounts. |
Reimbursable advertising assistance | Manufacturer advertising rebates that are reimbursements of costs associated with specific advertising expenses are earned in accordance with the respective manufacturers’ reimbursement-based advertising assistance programs, which is typically after we have incurred the corresponding advertising expenses, and are reflected as a reduction of advertising expense. |
Parts and Service Internal Profit | Our parts and service departments recondition the majority of used vehicles acquired by our used vehicle departments and perform preparatory work and accessory installation on new vehicles acquired by our new vehicle departments. The parts and service departments charge the new and used vehicle departments as if they were third parties in order to account for total activity performed by that department. Revenues and costs of sales associated with the internal work performed by our parts and service departments are reflected in our parts and service results in our Consolidated Statements of Income. New and used vehicle revenues and costs of sales are reduced by the amount of the intracompany charge. As a result, the revenues and costs of sales associated with the internal work performed by our parts and service departments are eliminated in consolidation. We also defer internal profit associated with the internal work performed by our parts and service departments on our vehicle inventory until such vehicles have been sold. |
Income Taxes | We file a consolidated federal income tax return. Deferred income taxes have been provided for temporary differences between the recognition of revenue and expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the financial statements. |
Earnings (Loss) Per Share | Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested RSU awards. Diluted earnings per share is computed using the treasury stock method by dividing net income by the weighted average number of shares outstanding, noted above, including the dilutive effect of unvested RSU awards and stock options. |
Taxes Assessed by Governmental Authorities | Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue and expenses. |
Revenue Recognition | New and Used Vehicle We sell new vehicles at our franchised dealerships and used vehicles at our franchised dealerships, AutoNation USA used vehicle stores, and wholesale auctions. The transaction price for a vehicle sale is determined with the customer at the time of sale. Customers often trade in their own vehicle to apply toward the purchase of a retail new or used vehicle. The “trade-in” vehicle is a type of noncash consideration measured at fair value, based on external and internal market data for the specific vehicle, and applied as payment to the contract price for the purchased vehicle. When we sell a new or used vehicle, we typically transfer control at a point in time upon delivery of the vehicle to the customer, which is generally at time of sale, as the customer is able to direct the use of, and obtain substantially all of the benefits from, the vehicle at such time. We do not directly finance our customers’ vehicle purchases or leases. We offer indirect financing on certain vehicles we sell, and income from such financing is reflected in our AutoNation Finance results within Other (Income) Expense, Net in our Consolidated Statements of Income. In many cases, we arrange third-party financing for the retail sale or lease of vehicles to our customers in exchange for a fee paid to us by the third-party financial institution. We receive payment directly from the customer at the time of sale, from the third-party financial institution (referred to as contracts-in-transit or vehicle receivables, which are part of our receivables from contracts with customers), or from our captive finance company within a short period of time following the sale. We establish provisions, which are not significant, for estimated returns and warranties on the basis of both historical information and current trends. We also offer auction services at our AutoNation-branded automotive auctions, revenue from which is included within Used Vehicle wholesale revenue. The transaction price for auction services is based on an established pricing schedule and determined with the customer at the time of sale, and payment is due upon completion of service. We satisfy our performance obligations related to auction services at the point in time that control transfers to the customer, which is when the service is completed. Parts and Service We sell parts and automotive services related to customer-paid repairs and maintenance, repairs and maintenance under manufacturer warranties and extended service contracts, and collision-related repairs. We also sell parts through our wholesale and retail counter channels, as well as our e-commerce website. Each automotive repair and maintenance service is a single performance obligation that includes both the parts and labor associated with the service. Payment for automotive service work is typically due upon completion of the service, which is generally completed within a short period of time from contract inception. The transaction price for automotive repair and maintenance services is based on the parts used, the number of labor hours applied, and standardized hourly labor rates. We satisfy our performance obligations, transfer control, and recognize revenue over time for automotive repair and maintenance services because we are creating an asset with no alternative use and we have an enforceable right to payment for performance completed to date. We use an input method to recognize revenue and measure progress based on labor hours expended relative to the total labor hours expected to be expended to satisfy the performance obligation. We have determined labor hours expended to be the relevant measure of work performed to complete the automotive repair or maintenance service for the customer. As a practical expedient, since automotive repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue. The transaction price for wholesale and retail counter parts sales is determined at the time of sale based on the quantity and price of each product purchased. Payment is typically due at time of sale, or within a short period of time following the sale. We establish provisions, which are not significant, for estimated parts returns based on historical information and current trends. Delivery methods of wholesale and retail counter parts vary; however, we generally consider control of wholesale and retail counter parts to transfer when the products are shipped, which typically occurs the same day as or within a few days of the sale. Finance and Insurance We sell and receive a commission on the following types of finance and insurance products: extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products, among others. We offer products that are sold and administered by independent third parties, including the vehicle manufacturers’ captive finance subsidiaries. Pursuant to our arrangements with these third-party providers, we sell the products on a commission basis, and, for certain products, we also participate in future profit pursuant to retrospective commission arrangements with the issuers of those contracts through the life of the related contracts. For retrospective commission arrangements, we are paid annually based on the annual performance of the issuers’ product portfolio. For the majority of finance and insurance product sales, our performance obligation is to arrange for the provision of goods or services by another party. Our performance obligation is satisfied when this arrangement is made, which is when the finance and insurance product is delivered to the end-customer, generally at the time of the vehicle sale. As agent, we recognize revenue in the amount of any fee or commission to which we expect to be entitled, which is the net amount of consideration that we retain after paying the third-party provider the consideration received in exchange for the goods or services to be fulfilled by that party. The retrospective commission we earn on each product sold is a form of variable consideration that is subject to constraint due to it being highly susceptible to factors outside our influence and control. Our agreements with the third-party administrators generally provide for an annual retrospective commission payout based on the product portfolio performance for that year. We estimate variable consideration related to retrospective commissions and perform a constraint analysis using the expected value method based on the historical performance of the product portfolios and current trends to estimate the amount of retrospective commissions to which we expect we will be entitled. At each reporting period, we reassess our expectations about the amount of retrospective commission variable consideration to which we expect to be entitled and recognize revenue when we no longer believe a significant revenue reversal is probable. Additionally, we may be charged back for commissions related to finance and insurance products in the event of early termination, default, or prepayment of the contracts by end-customers (“chargebacks”). An estimated refund liability for chargebacks against the revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized and is based primarily on our historical chargeback experience. We update our measurement of the chargeback liability at each reporting date for changes in expectations about the amount of chargebacks. See Note 11 of the Notes to Consolidated Financial Statements for more information regarding chargeback liabilities. |
Auto loans receivable, Allowance for credit losses | The allowance for credit losses represents the net credit losses expected over the remaining contractual life of our auto loans receivable. The allowance for credit losses is determined using a vintage-level statistical model that captures the relationship between historical changes in gross losses and the lifetime loss curves by month on book, credit tiers at origination, and seasonality, adjusted for expected recoveries based on historical recovery trends. The credit loss model also incorporates reasonable and supportable forecasts about the future utilizing a forecast of a macroeconomic variable, specifically, the change in U.S. disposable personal income, which we believe is most strongly correlated to evaluating and predicting expected credit losses of our auto loans receivable. We utilize a reasonable and supportable forecast period of one year, after which we immediately revert to historical experience. We periodically consider whether the use of alternative variables would result in improved credit loss model accuracy and revise the model when appropriate. We also consider whether qualitative adjustments are necessary for factors that are not reflected in the quantitative methods but impact the measurement of estimated credit losses. Such adjustments include the expectations of the impact of recent economic trends on customer behavior. |
Impairment Of Long-Lived Assets | Nonfinancial assets such as goodwill, other intangible assets, and long-lived assets held and used, are measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized or for a business combination. The fair values less costs to sell of long-lived assets or disposal groups held for sale are assessed each reporting period they remain classified as held for sale. Subsequent changes in the held for sale long-lived asset’s or disposal group’s fair value less cost to sell (increase or decrease) are reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset or disposal group at the time it was initially classified as held for sale. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue Recognition [Abstract] | |
Disaggregation of Revenue | In the following tables, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. The tables also include a reconciliation of the disaggregated revenue to reportable segment revenue. Year Ended December 31, 2023 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 3,525.0 $ 3,996.0 $ 5,246.4 $ — $ 12,767.4 Used vehicle 2,428.4 2,222.2 2,979.5 568.4 8,198.5 Parts and service 1,184.7 1,150.1 1,593.1 605.8 4,533.7 Finance and insurance, net 432.0 490.1 446.2 50.5 1,418.8 Other 3.1 22.5 1.2 3.7 30.5 $ 7,573.2 $ 7,880.9 $ 10,266.4 $ 1,228.4 $ 26,948.9 Timing of Revenue Recognition Goods and services transferred at a point in time $ 6,723.2 $ 6,988.3 $ 8,911.4 $ 819.9 $ 23,442.8 Goods and services transferred over time (2) 850.0 892.6 1,355.0 408.5 3,506.1 $ 7,573.2 $ 7,880.9 $ 10,266.4 $ 1,228.4 $ 26,948.9 Year Ended December 31, 2022 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 3,409.1 $ 3,473.0 $ 4,872.3 $ — $ 11,754.4 Used vehicle 3,022.3 2,652.7 3,499.8 487.0 9,661.8 Parts and service 1,092.7 1,050.9 1,448.6 508.4 4,100.6 Finance and insurance, net 460.3 494.1 453.8 29.1 1,437.3 Other 3.1 19.6 3.6 4.6 30.9 $ 7,987.5 $ 7,690.3 $ 10,278.1 $ 1,029.1 $ 26,985.0 Timing of Revenue Recognition Goods and services transferred at a point in time $ 7,226.9 $ 6,896.2 $ 9,063.1 $ 703.7 $ 23,889.9 Goods and services transferred over time (2) 760.6 794.1 1,215.0 325.4 3,095.1 $ 7,987.5 $ 7,690.3 $ 10,278.1 $ 1,029.1 $ 26,985.0 Year Ended December 31, 2021 Domestic Import Premium Luxury Corporate and other (1) Total Major Goods/Service Lines New vehicle $ 3,601.8 $ 3,969.8 $ 4,510.1 $ — $ 12,081.7 Used vehicle 2,875.0 2,370.5 3,067.4 325.9 8,638.8 Parts and service 1,007.6 950.0 1,246.7 502.3 3,706.6 Finance and insurance, net 469.1 489.6 401.0 24.8 1,384.5 Other 6.4 18.6 4.7 2.7 32.4 $ 7,959.9 $ 7,798.5 $ 9,229.9 $ 855.7 $ 25,844.0 Timing of Revenue Recognition Goods and services transferred at a point in time $ 7,260.7 $ 7,079.0 $ 8,197.6 $ 535.6 $ 23,072.9 Goods and services transferred over time (2) 699.2 719.5 1,032.3 320.1 2,771.1 $ 7,959.9 $ 7,798.5 $ 9,229.9 $ 855.7 $ 25,844.0 (1) “Corporate and other” is comprised of our other businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, auction operations, and AutoNation Mobile Service. (2) Represents revenue recognized during the period for automotive repair and maintenance services. |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction | The following table includes estimated revenue expected to be recognized in the future related to VCP performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period. Revenue Expected to Be Recognized by Period Total Next 12 Months 13 - 36 Months 37 - 60 Months Revenue expected to be recognized on VCP contracts sold as of period end $ 107.3 $ 36.7 $ 52.3 $ 18.3 |
Contract Assets and Liabilities | The following table provides the balances at December 31 of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities: 2023 2022 2021 Receivables from contracts with customers, net $ 762.0 $ 634.5 $ 539.9 Contract Asset (Current) $ 23.1 $ 27.7 $ 30.4 Contract Asset (Long-Term) $ 3.2 $ 8.6 $ 14.2 Contract Liability (Current) $ 42.5 $ 41.8 $ 33.6 Contract Liability (Long-Term) $ 70.6 $ 66.6 $ 60.5 The change in the balances of our contract assets and contract liabilities primarily result from the timing differences between our performance and the customer’s payment, as well as changes in the estimated transaction price related to variable consideration for performance obligations satisfied in previous periods. The following table presents revenue recognized during the year from amounts included in the contract liability balance at the beginning of the period and adjustments to revenue related to performance obligations satisfied in previous periods: 2023 2022 2021 Amounts included in contract liability at the beginning of the period $ 35.0 $ 33.6 $ 32.1 Performance obligations satisfied in previous periods $ — $ 2.1 $ 19.4 Other significant changes include contract assets reclassified to receivables of $29.1 million during 2023 and $30.5 million in 2022. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted EPS | The following table presents the calculation of basic and diluted EPS: 2023 2022 2021 Net income from continuing operations $ 1,020.2 $ 1,377.7 $ 1,373.3 Income (loss) from discontinued operations, net of income taxes 0.9 (0.3) (0.3) Net income $ 1,021.1 $ 1,377.4 $ 1,373.0 Basic weighted average common shares outstanding 44.6 56.3 74.2 Dilutive effect of unvested RSUs and stock options 0.3 0.4 0.8 Diluted weighted average common shares outstanding 44.9 56.7 75.0 Basic EPS amounts (1) : Continuing operations $ 22.87 $ 24.47 $ 18.51 Discontinued operations $ 0.02 $ (0.01) $ — Net income $ 22.89 $ 24.47 $ 18.50 Diluted EPS amounts (1) : Continuing operations $ 22.72 $ 24.30 $ 18.31 Discontinued operations $ 0.02 $ (0.01) $ — Net income $ 22.74 $ 24.29 $ 18.31 (1) EPS amounts are calculated discretely and, therefore, may not add up to the total due to rounding. |
Anti-Dilutive Equity Instruments Excluded From The Computation Of Diluted Earnings Per Share | A summary of anti-dilutive equity instruments excluded from the computation of diluted EPS is as follows: 2023 2022 2021 Anti-dilutive equity instruments excluded from the computation of diluted EPS — 0.1 — |
Receivables, Net (Tables)
Receivables, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Schedule of Accounts Receivables | The components of receivables, net of allowances for expected credit losses, at December 31 are as follows: 2023 2022 Contracts-in-transit and vehicle receivables $ 553.8 $ 441.1 Trade receivables 173.2 156.6 Manufacturer receivables 240.5 174.4 Income taxes receivable (see Note 13) 11.1 20.2 Other 63.9 68.2 1,042.5 860.5 Less: allowances for expected credit losses (2.1) (1.7) Receivables, net $ 1,040.4 $ 858.8 |
Auto Loans Receivable (Tables)
Auto Loans Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Auto Loans Receivable | The components of auto loans receivable, net of unearned discounts and allowances for expected credit losses, at December 31, are as follows: 2023 2022 Total auto loans receivable $ 451.2 $ 377.0 Accrued interest and fees 4.8 4.4 Deferred loan origination costs 1.6 0.5 Less: unearned discounts (8.9) (21.3) Less: allowances for expected credit losses (46.3) (57.5) Auto loans receivable, net $ 402.4 $ 303.1 |
Financing Receivable Credit Quality Indicators | The following table presents auto loans receivable as of December 31, 2023, and December 31, 2022, disaggregated by major credit program tier: Fiscal Year of Origination As of December 31, 2023 2023 2022 2021 2020 2019 Prior to 2019 Total Credit Program Tier (1) : Platinum $ 163.9 $ 14.8 $ 8.2 $ 3.3 $ 3.1 $ 0.5 $ 193.8 Gold 64.3 35.9 18.5 6.8 4.5 0.8 130.8 Silver 50.2 33.0 16.2 5.2 2.8 0.3 107.7 Bronze 6.7 0.7 6.0 1.5 0.1 — 15.0 Copper 0.3 0.2 2.8 0.5 0.1 — 3.9 Total auto loans receivable $ 285.4 $ 84.6 $ 51.7 $ 17.3 $ 10.6 $ 1.6 $ 451.2 Current-period gross write-offs $ 10.5 $ 33.6 $ 16.4 $ 4.6 $ 2.5 $ 0.7 $ 68.3 Fiscal Year of Origination As of December 31, 2022 2022 2021 2020 2019 2018 Prior to 2018 Total Credit Program Tier (1) : Platinum $ 21.9 $ 12.9 $ 6.4 $ 7.4 $ 2.2 $ 0.2 $ 51.0 Gold 53.7 30.0 12.9 10.6 3.2 0.4 110.8 Silver 61.9 29.8 10.4 8.0 1.9 0.1 112.1 Bronze 41.4 17.1 7.4 3.7 1.0 0.1 70.7 Copper 19.2 8.0 2.6 1.8 0.7 0.1 32.4 Total auto loans receivable $ 198.1 $ 97.8 $ 39.7 $ 31.5 $ 9.0 $ 0.9 $ 377.0 (1) Classified based on credit grade assigned when customer was initially approved for financing. |
Financing Receivable, Allowance for Credit Loss | The following is a rollforward of our allowance for expected credit losses for auto loans receivable for the years ended December 31, 2023, and December 31, 2022: 2023 2022 (1) Balance as of beginning of year $ 57.5 $ — Provision for credit losses 45.9 43.8 Initial allowance for purchased credit-deteriorated loans — 21.7 Write-offs (68.3) (13.9) Recoveries (2) 27.3 5.9 Sold loans (16.1) — Balance as of end of year $ 46.3 $ 57.5 (1) Reflects activity that occurred after the acquisition of CIG Financial on October 1, 2022. Provision for credit losses includes initial credit loss expense of $34.2 million associated with the auto loan portfolio acquired as part of the acquisition. (2) Includes proceeds from the recovery of vehicle collateral, net of costs incurred. |
Financing Receivable, Past Due | The following table presents past due auto loans receivable, as of December 31, 2023, and December 31, 2022: Age Analysis of Past-Due Financial Assets as of December 31, 2023 2022 31-60 Days $ 20.7 $ 13.0 61-90 Days 5.4 4.1 Greater than 90 Days 3.1 2.6 Total Past Due $ 29.2 $ 19.7 Current 422.0 357.3 Total $ 451.2 $ 377.0 |
Inventory and Vehicle Floorpl_2
Inventory and Vehicle Floorplan Payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Inventory And Vehicle Floorplan Payable [Abstract] | |
Components Of Inventory | The components of inventory at December 31 are as follows: 2023 2022 New vehicles $ 1,948.6 $ 1,009.7 Used vehicles 815.3 789.1 Parts, accessories, and other 269.5 249.5 Inventory $ 3,033.4 $ 2,048.3 |
Components Of Vehicle Floorplan Payable | The components of vehicle floorplan payable at December 31 are as follows: 2023 2022 Vehicle floorplan payable - trade $ 1,760.0 $ 946.6 Vehicle floorplan payable - non-trade 1,622.4 1,162.7 Vehicle floorplan payable $ 3,382.4 $ 2,109.3 |
Property and Equipment, Net (Ta
Property and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment, Net | A summary of property and equipment, net, at December 31 is as follows: 2023 2022 Land $ 1,539.5 $ 1,507.8 Buildings and improvements 2,898.1 2,671.6 Furniture, fixtures, and equipment 1,486.7 1,362.9 5,924.3 5,542.3 Less: accumulated depreciation and amortization (2,132.7) (1,935.1) Property and equipment, net $ 3,791.6 $ 3,607.2 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets, Net (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets, Net | Goodwill and intangible assets, net, at December 31 consisted of the following: 2023 2022 Goodwill $ 1,465.8 $ 1,320.1 Franchise rights - indefinite-lived $ 876.2 $ 816.2 Other intangible assets 68.0 30.7 944.2 846.9 Less: accumulated amortization (16.4) (9.9) Intangible assets, net $ 927.8 $ 837.0 |
Goodwill Allocated to Reporting Units and Changes in Carrying Amounts | Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the years ended December 31, 2023 and 2022, were as follows: Domestic Import Premium Other Consolidated Balance as of January 1, 2022 Goodwill (1) $ 368.7 $ 517.9 $ 741.5 $ 1,535.5 $ 3,163.6 Accumulated impairment losses (1) (140.0) — (257.4) (1,530.9) (1,928.3) 228.7 517.9 484.1 4.6 1,235.3 Acquisitions, dispositions, and other adjustments, net (2) 7.6 0.8 (2.0) 78.4 84.8 Balance as of December 31, 2022 Goodwill (1) 376.3 518.7 739.5 1,613.9 3,248.4 Accumulated impairment losses (1) (140.0) — (257.4) (1,530.9) (1,928.3) 236.3 518.7 482.1 83.0 1,320.1 Acquisitions, dispositions, and other adjustments, net (2) (1.8) 7.9 — 139.6 145.7 Balance as of December 31, 2023 Goodwill (1) 374.5 526.6 739.5 1,753.5 3,394.1 Accumulated impairment losses (1) (140.0) — (257.4) (1,530.9) (1,928.3) $ 234.5 $ 526.6 $ 482.1 $ 222.6 $ 1,465.8 (1) Gross goodwill balance and accumulated impairment losses reflected in “Other” include $1.47 billion associated with our single reporting unit (prior to September 30, 2008, our reporting unit reporting structure was comprised of a single reporting unit). Gross goodwill balance reflected in “Other” also includes amounts associated with the Collision Center, Parts Center, AutoNation Finance and AutoNation Mobile Service reporting units, as applicable in a given period. (2) |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Lease Assets and Lease Liabilities | Leases Classification 2023 2022 Assets Operating Operating Lease Assets $ 392.1 $ 323.5 Finance Property and Equipment, Net and Other Assets 351.1 361.4 Total right-of-use assets $ 743.2 $ 684.9 Liabilities Current Operating Other Current Liabilities $ 41.2 $ 39.5 Finance Current Maturities of Long-Term Debt and Vehicle Floorplan Payable - Trade 46.9 39.0 Noncurrent Operating Noncurrent Operating Lease Liabilities 363.2 296.9 Finance Long-Term Debt, Net of Current Maturities 349.6 363.2 Total lease liabilities $ 800.9 $ 738.6 Lease Term and Discount Rate 2023 2022 Weighted average remaining lease term Operating 12 years 11 years Finance 13 years 14 years Weighted-average discount rate Operating 5.71 % 5.25 % Finance 4.43 % 4.47 % |
Net Lease Cost | Lease cost Classification 2023 2022 Operating lease cost Selling, general, and administrative expenses $ 62.3 $ 56.0 Finance lease cost: Amortization of ROU assets Depreciation and amortization 24.6 20.9 Interest on lease liabilities Other interest expense and floorplan interest expense 17.8 13.3 Short-term lease cost (1) Selling, general, and administrative expenses 11.3 10.6 Variable lease cost Selling, general, and administrative expenses 12.0 10.5 Sublease income Selling, general, and administrative expenses (3.6) (3.6) Net lease cost $ 124.4 $ 107.7 (1) Includes leases with a term of one month or less. |
Cash Flow Information, Lessee | Other Information 2023 2022 Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 61.4 $ 56.8 Operating cash flows from finance leases (1) $ 63.7 $ 36.2 Financing cash flows from finance leases $ 12.3 $ 11.3 Supplemental noncash information on adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new: Operating lease liabilities $ 111.7 $ 78.7 Finance lease liabilities $ 54.7 $ 90.8 (1) Includes the interest component of payments made on finance leases as well as principal payments on vehicle floorplan payables with trade lenders for certain service loaner vehicle leases. |
Maturity of Lease Liabilities | Maturity of Lease Liabilities Operating Leases Finance Leases Year ending December 31, 2024 $ 58.1 $ 59.8 2025 58.0 83.0 2026 53.4 24.1 2027 50.6 25.3 2028 47.3 25.0 Thereafter 304.5 284.1 Total lease payments 571.9 501.3 Less: interest (167.5) (104.8) Present value of lease liabilities $ 404.4 $ 396.5 |
Maturity of Lease Liabilities | Maturity of Lease Liabilities Operating Leases Finance Leases Year ending December 31, 2024 $ 58.1 $ 59.8 2025 58.0 83.0 2026 53.4 24.1 2027 50.6 25.3 2028 47.3 25.0 Thereafter 304.5 284.1 Total lease payments 571.9 501.3 Less: interest (167.5) (104.8) Present value of lease liabilities $ 404.4 $ 396.5 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Long-term debt | Non-vehicle long-term debt at December 31 consisted of the following: Debt Description Maturity Date Interest Payable 2023 2022 3.5% Senior Notes November 15, 2024 May 15 and November 15 $ 450.0 $ 450.0 4.5% Senior Notes October 1, 2025 April 1 and October 1 450.0 450.0 3.8% Senior Notes November 15, 2027 May 15 and November 15 300.0 300.0 1.95% Senior Notes August 1, 2028 February 1 and August 1 400.0 400.0 4.75% Senior Notes June 1, 2030 June 1 and December 1 500.0 500.0 2.4% Senior Notes August 1, 2031 February 1 and August 1 450.0 450.0 3.85% Senior Notes March 1, 2032 March 1 and September 1 700.0 700.0 Revolving credit facility July 18, 2028 Monthly — — Finance leases and other debt Various dates through 2041 362.2 375.5 3,612.2 3,625.5 Less: unamortized debt discounts and debt issuance costs (21.9) (26.0) Less: current maturities (462.4) (12.6) Long-term debt, net of current maturities $ 3,127.9 $ 3,586.9 |
Aggregate maturities of non-vehicle long-term debt | At December 31, 2023, aggregate maturities of non-vehicle long-term debt were as follows: Year Ending December 31: 2024 $ 462.1 2025 518.9 2026 13.9 2027 315.8 2028 416.2 Thereafter 1,885.3 $ 3,612.2 Debt Refinancing Transaction On July 18, 2023, we amended and restated our unsecured credit agreement to, among other things, (1) increase the revolving credit facility (the “facility”) commitment from $1.8 billion to $1.9 billion, (2) extend the maturity date of the facility to July 18, 2028, (3) allow for the maximum leverage ratio covenant to increase from 3.75x to 4.25x for four fiscal quarters in the event that we complete a material acquisition, and (4) replace the maximum capitalization ratio covenant with a minimum interest coverage ratio covenant. |
Schedule of non-recourse debt | Non-recourse debt outstanding at December 31, 2023, and December 31, 2022 consisted of the following: 2023 2022 Warehouse facilities $ 209.4 $ 181.8 Term securitization debt of consolidated VIEs 50.5 146.9 259.9 328.7 Less: unamortized debt discounts and debt issuance costs (1.5) (5.1) Less: current maturities (8.8) (10.7) Non-recourse debt, net of current maturities $ 249.6 $ 312.9 |
Chargeback Liability (Tables)
Chargeback Liability (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Rollforward of Estimated Chargeback Liability | The following is a rollforward of our estimated chargeback liability for each of the three years presented in our Consolidated Financial Statements: 2023 2022 2021 Balance - January 1 $ 197.0 $ 171.0 $ 142.1 Add: Provisions 168.0 192.3 168.9 Deduct: Chargebacks (164.6) (166.3) (140.0) Balance - December 31 $ 200.4 $ 197.0 $ 171.0 |
Self-Insurance (Tables)
Self-Insurance (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Insurance [Abstract] | |
Current and long-term self-insurance liabilities | At December 31, 2023 and 2022, current and long-term self-insurance liabilities were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows: 2023 2022 Self-insurance - current portion $ 42.3 $ 37.6 Self-insurance - long-term portion 60.0 56.9 Total self-insurance liabilities $ 102.3 $ 94.5 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Components of Income Tax Provision From Continuing Operations | The components of the income tax provision from continuing operations for the years ended December 31 are as follows: 2023 2022 2021 Current: Federal $ 245.6 $ 368.7 $ 374.2 State 64.9 87.4 78.5 Federal and state deferred 19.0 0.8 (17.2) Change in valuation allowance, net 1.0 0.2 (0.2) Adjustments and settlements (0.5) (1.3) (0.2) Income tax provision $ 330.0 $ 455.8 $ 435.1 |
Reconciliation of Income Tax Provision | A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows: 2023 % 2022 % 2021 % Income tax provision at statutory rate $ 283.5 21.0 $ 385.0 21.0 $ 379.8 21.0 Other non-deductible expenses, net 0.5 — 7.9 0.4 (1.2) (0.1) State income taxes, net of federal benefit 53.4 4.0 72.8 4.0 60.7 3.4 337.4 25.0 465.7 25.4 439.3 24.3 Change in valuation allowance, net 1.0 0.1 0.2 — (0.2) — Adjustments and settlements (0.5) — (1.3) (0.1) (0.2) — Federal and state tax credits (2.8) (0.2) (4.5) (0.2) (1.0) — Other, net (5.1) (0.5) (4.3) (0.2) (2.8) (0.2) Income tax provision $ 330.0 24.4 $ 455.8 24.9 $ 435.1 24.1 |
Deferred Income Tax Asset and Liability Components | Deferred income tax asset and liability components at December 31 are as follows: 2023 2022 Deferred income tax assets: Inventory $ 31.9 $ 23.7 Receivable allowances 0.4 12.0 Warranty, chargeback, and self-insurance liabilities 72.6 70.2 Other accrued liabilities 30.7 27.7 Deferred compensation 31.7 26.5 Stock-based compensation 9.0 7.7 Lease liabilities 162.9 148.9 Loss carryforwards— federal and state 22.7 5.8 Other, net 20.9 11.5 Total deferred income tax assets 382.8 334.0 Valuation allowance (7.1) (4.6) Deferred income tax assets, net of valuation allowance 375.7 329.4 Deferred income tax liabilities: Long-lived assets (intangible assets and property) (298.7) (258.4) Investments - unrealized appreciation (2.8) (1.6) Right-of-use assets (150.2) (137.2) Other, net (9.0) (8.7) Total deferred income tax liabilities (460.7) (405.9) Net deferred income tax liabilities $ (85.0) $ (76.5) |
Schedule of Unrecognized Tax Benefits Roll Forward | A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows: 2023 2022 2021 Balance at January 1 $ 5.5 $ 6.9 $ 7.0 Additions based on tax positions related to the current year — — — Additions for tax positions of prior years 1.2 0.6 0.8 Reductions for tax positions of prior years — — — Reductions for expirations of statute of limitations (1.6) (1.4) (0.9) Settlements — (0.6) — Balance at December 31 $ 5.1 $ 5.5 $ 6.9 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Stockholders' Equity Note [Abstract] | |
Shares Repurchased Under Share Repurchase Program | A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows: 2023 2022 2021 Shares repurchased 6.4 15.6 22.3 Aggregate purchase price (1) $ 863.6 $ 1,710.2 $ 2,303.2 Average purchase price per share $ 134.68 $ 109.86 $ 103.18 (1) 2023 excludes excise tax accrual imposed under the Inflation Reduction Act of $8.1 million. |
Common Stock Issued With The Exercise of Stock Options | A summary of shares of common stock issued in connection with the exercise of stock options follows: 2023 2022 2021 Shares issued (in actual number of shares) 37,996 71,030 1,025,673 Proceeds from the exercise of stock options $ 1.9 $ 3.4 $ 54.5 Average exercise price per share $ 50.34 $ 47.94 $ 53.13 |
Shares Issued and Shares Surrendered to Satisfy Tax Withholdings in Connection With Restricted Stock Units | The following table presents a summary of shares of common stock issued in connection with the settlement of RSUs, as well as shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the settlement of RSUs: 2023 2022 2021 Shares issued 0.6 0.8 0.7 Shares surrendered to AutoNation to satisfy tax withholding obligations 0.2 0.3 0.2 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Restricted Stock Unit Activity | The following table summarizes information about vested and nonvested RSUs for 2023: RSUs Shares Weighted-Average Nonvested at January 1 1.2 $ 75.14 Granted 0.4 $ 139.11 Vested (0.5) $ 60.40 Forfeited (0.1) $ 112.36 Nonvested at December 31 1.0 $ 108.26 |
Stock-Based Compensation Expense and related Tax Benefit Recognized | The following table summarizes the total stock-based compensation expense related to RSUs recognized in Selling, General, and Administrative Expenses in the Consolidated Statements of Income and the total recognized tax benefit related thereto: 2023 2022 2021 Stock-based compensation expense $ 39.7 $ 31.5 $ 35.0 Tax benefit related to stock-based compensation expense $ 4.5 $ 4.0 $ 2.4 |
Weighted Average Grant-Date Fair Value of Restricted Stock Units Granted and Total Fair Value of Restricted Stock Units Vested | The weighted average grant-date fair value of RSUs and total fair value of RSUs vested are summarized in the following table: 2023 2022 2021 Weighted average grant-date fair value of RSUs granted $ 139.11 $ 112.66 $ 85.45 Total fair value of RSUs vested (in millions) $ 76.0 $ 85.7 $ 51.8 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Pro forma revenue and net income from continuing operations | Our supplemental pro forma revenue and net income from continuing operations had the acquisition dates been January 1, 2020 are as follows: Unaudited supplemental pro forma: 2021 Revenue $ 26,544.2 Net income from continuing operations $ 1,407.0 |
Cash Flow Information (Tables)
Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Supplemental Cash Flow Information [Abstract] | |
Reconciliation of cash and cash equivalents | The following table provides a reconciliation of cash and cash equivalents reported on our Consolidated Balance Sheets to the total amounts reported on our Consolidated Statements of Cash Flows: Years Ended December 31, 2023 2022 Cash and cash equivalents $ 60.8 $ 72.6 Restricted cash included in Other Current Assets 14.3 15.6 Restricted cash included in Other Assets 1.9 7.2 Total cash, cash equivalents, and restricted cash $ 77.0 $ 95.4 |
Financial Instruments and Fai_2
Financial Instruments and Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Unrealized gains recognized on equity securities | The following is the portion of unrealized gains recognized during the years ended December 31, 2023 and 2022, related to equity securities still held at December 31: 2023 2022 Net gains recognized during the period on equity securities $ 5.2 $ 2.9 Less: Net gains recognized during the period on equity securities sold during the period — — Unrealized gains recognized during the reporting period on equity securities still held at the reporting date $ 5.2 $ 2.9 |
Summary Of Carrying Values And Fair Values Of Fixed Rate Debt | A summary of the aggregate carrying values and fair values of our senior unsecured notes at December 31 is as follows: 2023 2022 Carrying value $ 3,228.1 $ 3,224.0 Fair value $ 2,979.3 $ 2,803.6 |
Nonfinancial Assets Measured and Recorded At Fair Value On A Nonrecurring Basis | The following table presents assets measured and recorded at fair value on a nonrecurring basis during the years ended December 31, 2023 and 2022: 2023 2022 Description Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Gain/(Loss) Fair Value Measurements Using Significant Unobservable Inputs (Level 3) Gain/(Loss) Other intangible assets $ — $ (2.3) $ — $ — Long-lived assets held and used $ — $ (2.9) $ — $ (1.6) |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reportable Segment Information | The following tables provide information on revenues from external customers, segment income of our reportable segments, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures. Year Ended December 31, 2023 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,573.2 $ 7,880.9 $ 10,266.4 $ 1,228.4 $ 26,948.9 Floorplan interest expense $ 57.3 $ 21.5 $ 53.9 $ 12.0 $ 144.7 Depreciation and amortization $ 43.6 $ 39.2 $ 76.9 $ 60.8 $ 220.5 Segment income (loss) (1) $ 415.4 $ 635.0 $ 836.5 $ (379.7) $ 1,507.2 Capital expenditures (2) $ 102.0 $ 106.6 $ 69.4 $ 138.0 $ 416.0 Segment assets $ 2,507.7 $ 2,034.6 $ 3,506.8 $ 3,930.9 $ 11,980.0 Year Ended December 31, 2022 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,987.5 $ 7,690.3 $ 10,278.1 $ 1,029.1 $ 26,985.0 Floorplan interest expense $ 14.4 $ 4.8 $ 15.0 $ 7.2 $ 41.4 Depreciation and amortization $ 39.1 $ 35.6 $ 74.9 $ 50.7 $ 200.3 Segment income (loss) (1) $ 565.3 $ 734.2 $ 969.1 $ (285.5) $ 1,983.1 Capital expenditures (2) $ 32.8 $ 70.1 $ 126.5 $ 106.8 $ 336.2 Segment assets $ 1,974.3 $ 1,555.6 $ 2,996.8 $ 3,533.0 $ 10,059.7 Year Ended December 31, 2021 Domestic Import Premium Luxury Corporate and other Total Revenues from external customers $ 7,959.9 $ 7,798.5 $ 9,229.9 $ 855.7 $ 25,844.0 Floorplan interest expense $ 7.9 $ 5.1 $ 8.8 $ 3.9 $ 25.7 Depreciation and amortization $ 39.3 $ 33.9 $ 64.8 $ 55.3 $ 193.3 Segment income (loss) (1) $ 595.8 $ 714.7 $ 837.4 $ (270.8) $ 1,877.1 Capital expenditures (2) $ 15.5 $ 27.1 $ 80.0 $ 109.3 $ 231.9 Segment assets $ 1,758.5 $ 1,424.2 $ 2,668.6 $ 3,092.3 $ 8,943.6 (1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. (2) Includes accrued construction in progress and excludes property associated with leases entered during the year. |
Reconciliation of Reportable Segment Revenue to Total Consolidated Revenue | The following is a reconciliation of the total of the reportable segments’ revenue and segment income to our consolidated revenue and income from continuing operations before income taxes, respectively. Years Ended December 31, 2023 2022 2021 Total external revenues for reportable segments $ 25,720.5 $ 25,955.9 $ 24,988.3 Corporate and other revenues 1,228.4 1,029.1 855.7 Total consolidated revenues $ 26,948.9 $ 26,985.0 $ 25,844.0 |
Reconciliation of Reportable Segment Income to Income from Continuing Operations Before Income Taxes | Years Ended December 31, 2023 2022 2021 Total segment income for reportable segments $ 1,886.9 $ 2,268.6 $ 2,147.9 Corporate and other (379.7) (285.5) (270.8) Other interest expense (181.4) (134.9) (93.0) Other income (loss), net 24.4 (14.7) 24.3 Income from continuing operations before income taxes $ 1,350.2 $ 1,833.5 $ 1,808.4 |
Multiemployer Pension Plans (Ta
Multiemployer Pension Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Multiemployer Plan [Abstract] | |
Multiemployer Plans | Pension Protection Act Zone Status Contributions of AutoNation ($ in millions) (1) Expiration Date of Collective-Bargaining Agreement Pension Fund EIN/Pension Plan Number 2023 2022 2023 2022 2021 Surcharge Imposed (2) Automotive Industries Pension Plan 94-1133245 - 001 Red Red $ 1.2 $ 1.3 $ 1.2 Yes (3) IAM National Pension Fund 51-6031295- 002 Red Red 0.2 0.2 0.2 Yes (4) Other funds 0.1 0.1 0.1 Total contributions $ 1.5 $ 1.6 $ 1.5 (1) Our stores were not listed in the Automotive Industries Pension Plan’s or IAM National Pension Fund’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2022 or 2021. (2) We paid surcharges to the Automotive Industries Pension Plan of $0.6 million, $0.6 million, and $0.5 million in 2023, 2022, and 2021 respectively. Surcharges to the IAM National Pension Fund were de minimis. (3) We are party to three collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan with expiration dates of April 30, 2024, May 31, 2024, and December 31, 2025. (4) We are party to two collective-bargaining agreements that require contributions to the IAM National Pension Fund. Both agreements have an expiration date of August 31, 2025. |
Description of Business and S_3
Description of Business and Summary of Significant Accounting Policies (Organization and Business, Inventory) (Details) | 12 Months Ended |
Dec. 31, 2023 store brand franchises | |
Product Information [Line Items] | |
Owned and operated new vehicle franchises | franchises | 349 |
Number of brands | brand | 34 |
Percentage of new vehicle sales from core brands (percent) | 88% |
Dealerships [Member] | |
Product Information [Line Items] | |
Number of stores | 252 |
Collision Center [Member] | |
Product Information [Line Items] | |
Number of stores | 53 |
AutoNation USA Stores [Member] | |
Product Information [Line Items] | |
Number of stores | 19 |
Automotive Auction Operations [Member] | |
Product Information [Line Items] | |
Number of stores | 4 |
Parts Distribution Centers [Member] | |
Product Information [Line Items] | |
Number of stores | 3 |
Description of Business and S_4
Description of Business and Summary of Significant Accounting Policies (Property and Equipment Net) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Reported Value Measurement [Member] | Continuing Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Assets held for sale in continuing operations | $ 21.3 | $ 5.7 |
Reported Value Measurement [Member] | Discontinued Operations [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Assets held for sale in discontinued operations | $ 0 | $ 1.1 |
Buildings and improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 5 years | |
Buildings and improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 40 years | |
Furniture, fixtures, and equipment [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 3 years | |
Furniture, fixtures, and equipment [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment estimated useful life | 10 years |
Description of Business and S_5
Description of Business and Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets [Line Items] | |
Franchise agreements, minimal contractual terms (in years) | 1 year |
Minimum [Member] | |
Goodwill and Intangible Assets [Line Items] | |
Other intangibles, useful life | 3 years |
Maximum [Member] | |
Goodwill and Intangible Assets [Line Items] | |
Other intangibles, useful life | 30 years |
Description of Business and S_6
Description of Business and Summary of Significant Accounting Policies (Employee Savings Plans) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
401(k) plan employer matching contribution | $ 24.5 | $ 19.9 | $ 14.3 |
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Matching contributions to employee participants | $ 2.1 | 1.3 | |
Deferred compensation arrangement with individual matching contribution annual vesting portion, year one | 33% | ||
Employer discretionary contributions vesting periods (in years) | 3 years | ||
Balances due to participants | $ 129.3 | $ 107.8 | |
Deferred compensation arrangement with individual matching contribution annual vesting years two and three | 33% |
Description of Business and S_7
Description of Business and Summary of Significant Accounting Policies (Revenue Recognition, Advertising) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Advertising [Abstract] | |||
Advertising expense, net | $ 243.5 | $ 184.3 | $ 170.3 |
Manufacturer advertising reimbursements | $ 61.3 | $ 58.2 | $ 51.4 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Disaggregation of Revenue [Line Items] | ||||
Revenues | $ 26,948.9 | $ 26,985 | $ 25,844 | |
Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 23,442.8 | 23,889.9 | 23,072.9 | |
Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [1] | 3,506.1 | 3,095.1 | 2,771.1 |
New Vehicle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 12,767.4 | 11,754.4 | 12,081.7 | |
Used Vehicle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,198.5 | 9,661.8 | 8,638.8 | |
Parts and Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 4,533.7 | 4,100.6 | 3,706.6 | |
Finance and Insurance, Net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,418.8 | 1,437.3 | 1,384.5 | |
Product and Service, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 30.5 | 30.9 | 32.4 | |
AN Reportable Segment, Domestic [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,573.2 | 7,987.5 | 7,959.9 | |
AN Reportable Segment, Domestic [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,723.2 | 7,226.9 | 7,260.7 | |
AN Reportable Segment, Domestic [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [1] | 850 | 760.6 | 699.2 |
AN Reportable Segment, Domestic [Member] | New Vehicle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,525 | 3,409.1 | 3,601.8 | |
AN Reportable Segment, Domestic [Member] | Used Vehicle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,428.4 | 3,022.3 | 2,875 | |
AN Reportable Segment, Domestic [Member] | Parts and Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,184.7 | 1,092.7 | 1,007.6 | |
AN Reportable Segment, Domestic [Member] | Finance and Insurance, Net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 432 | 460.3 | 469.1 | |
AN Reportable Segment, Domestic [Member] | Product and Service, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3.1 | 3.1 | 6.4 | |
AN Reportable Segment, Import [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 7,880.9 | 7,690.3 | 7,798.5 | |
AN Reportable Segment, Import [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 6,988.3 | 6,896.2 | 7,079 | |
AN Reportable Segment, Import [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [1] | 892.6 | 794.1 | 719.5 |
AN Reportable Segment, Import [Member] | New Vehicle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 3,996 | 3,473 | 3,969.8 | |
AN Reportable Segment, Import [Member] | Used Vehicle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,222.2 | 2,652.7 | 2,370.5 | |
AN Reportable Segment, Import [Member] | Parts and Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,150.1 | 1,050.9 | 950 | |
AN Reportable Segment, Import [Member] | Finance and Insurance, Net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 490.1 | 494.1 | 489.6 | |
AN Reportable Segment, Import [Member] | Product and Service, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 22.5 | 19.6 | 18.6 | |
AN Reportable Segment, Premium Luxury [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 10,266.4 | 10,278.1 | 9,229.9 | |
AN Reportable Segment, Premium Luxury [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 8,911.4 | 9,063.1 | 8,197.6 | |
AN Reportable Segment, Premium Luxury [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [1] | 1,355 | 1,215 | 1,032.3 |
AN Reportable Segment, Premium Luxury [Member] | New Vehicle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 5,246.4 | 4,872.3 | 4,510.1 | |
AN Reportable Segment, Premium Luxury [Member] | Used Vehicle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 2,979.5 | 3,499.8 | 3,067.4 | |
AN Reportable Segment, Premium Luxury [Member] | Parts and Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1,593.1 | 1,448.6 | 1,246.7 | |
AN Reportable Segment, Premium Luxury [Member] | Finance and Insurance, Net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 446.2 | 453.8 | 401 | |
AN Reportable Segment, Premium Luxury [Member] | Product and Service, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | 1.2 | 3.6 | 4.7 | |
Corporate and Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 1,228.4 | 1,029.1 | 855.7 |
Corporate and Other [Member] | Transferred at Point in Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 819.9 | 703.7 | 535.6 |
Corporate and Other [Member] | Transferred over Time [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [1],[2] | 408.5 | 325.4 | 320.1 |
Corporate and Other [Member] | New Vehicle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 0 | 0 | 0 |
Corporate and Other [Member] | Used Vehicle [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 568.4 | 487 | 325.9 |
Corporate and Other [Member] | Parts and Service [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 605.8 | 508.4 | 502.3 |
Corporate and Other [Member] | Finance and Insurance, Net [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | 50.5 | 29.1 | 24.8 |
Corporate and Other [Member] | Product and Service, Other [Member] | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenues | [2] | $ 3.7 | $ 4.6 | $ 2.7 |
[1] (2) Represents revenue recognized during the period for automotive repair and maintenance services. (1) “Corporate and other” is comprised of our other businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, auction operations, and AutoNation Mobile Service. |
Revenue Recognition Revenue Rem
Revenue Recognition Revenue Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Vehicle Care Program, contract term | 5 years |
Revenue expected to be recognized on VCP contracts sold as of period end | $ 107.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 1 year |
Revenue expected to be recognized on VCP contracts sold as of period end | $ 36.7 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue expected to be recognized on VCP contracts sold as of period end | $ 52.3 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2027-01-01 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period | 2 years |
Revenue expected to be recognized on VCP contracts sold as of period end | $ 18.3 |
Revenue Recognition Contract As
Revenue Recognition Contract Assets and Liabilities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition [Abstract] | |||
Receivables from contracts with customers, net | $ 762 | $ 634.5 | $ 539.9 |
Contract Asset (Current) | 23.1 | 27.7 | 30.4 |
Contract Asset (Long-Term) | 3.2 | 8.6 | 14.2 |
Contract Liability (Current) | 42.5 | 41.8 | 33.6 |
Contract Liability (Long-Term) | 70.6 | 66.6 | 60.5 |
Revenue amounts included in contract liability at the beginning of the period | 35 | 33.6 | 32.1 |
Revenue for performance obligations satisfied in previous periods | 0 | 2.1 | $ 19.4 |
Contract assets reclassified to receivables | $ 29.1 | $ 30.5 |
Revenue Recognition Contract Co
Revenue Recognition Contract Costs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Revenue Recognition [Abstract] | ||
Capitalized contract cost, amortization term | 5 years | |
Capitalized contract cost | $ 10.4 | $ 10.1 |
Capitalized Contract Cost, Amortization | $ 4 | $ 3.8 |
Earnings Per Share (Basic and D
Earnings Per Share (Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Earnings Per Share [Abstract] | ||||
Net income from continuing operations | $ 1,020.2 | $ 1,377.7 | $ 1,373.3 | |
Income (loss) from discontinued operations, net of income taxes | 0.9 | (0.3) | (0.3) | |
NET INCOME | $ 1,021.1 | $ 1,377.4 | $ 1,373 | |
Basic weighted average common shares outstanding (in shares) | 44.6 | 56.3 | 74.2 | |
Dilutive effect of stock options and unvested RSUs (in shares) | 0.3 | 0.4 | 0.8 | |
Diluted weighted average common shares outstanding (in shares) | 44.9 | 56.7 | 75 | |
Basic EPS amounts | ||||
Continuing operations (in dollars per share) | [1] | $ 22.87 | $ 24.47 | $ 18.51 |
Discontinued operations (in dollars per share) | [1] | 0.02 | (0.01) | 0 |
Net income (in dollars per share) | [1] | 22.89 | 24.47 | 18.50 |
Diluted EPS amounts: | ||||
Continuing operations (in dollars per share) | [1] | 22.72 | 24.30 | 18.31 |
Discontinued operations (in dollars per share) | [1] | 0.02 | (0.01) | 0 |
Net income (in dollars per share) | [1] | $ 22.74 | $ 24.29 | $ 18.31 |
[1] (1) EPS amounts are calculated discretely and, therefore, may not add up to the total due to rounding. |
Earnings Per Share (Anti-Diluti
Earnings Per Share (Anti-Dilutive Equity Instruments Excluded from the Computation of Diluted Earnings Per Share) (Details) - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |||
Anti-dilutive equity instruments excluded from the computation of diluted earnings per share (in shares) | 0 | 0.1 | 0 |
Receivables, Net (Components Of
Receivables, Net (Components Of Receivables, Net Of Allowances For Expected Credit Losses) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Contracts-in-transit and vehicle receivables | $ 553.8 | $ 441.1 |
Trade receivables | 173.2 | 156.6 |
Manufacturer receivables | 240.5 | 174.4 |
Income taxes receivable (See Note 13) | 11.1 | 20.2 |
Other | 63.9 | 68.2 |
Receivables, gross | 1,042.5 | 860.5 |
Less: allowances for expected credit losses | (2.1) | (1.7) |
Receivables, net | $ 1,040.4 | $ 858.8 |
Auto Loans Receivable - Compone
Auto Loans Receivable - Components Of Receivables, Net Of Allowances For Expected Credit Losses (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | |||
Total auto loans receivable | $ 451.2 | $ 377 | |
Accrued interest and fees | 4.8 | 4.4 | |
Deferred loan origination costs | 1.6 | 0.5 | |
Less: unearned discounts | (8.9) | (21.3) | |
Less: allowances for expected credit losses | (46.3) | (57.5) | $ 0 |
Auto loans receivable, net | $ 402.4 | $ 303.1 |
Auto Loans Receivable - Financi
Auto Loans Receivable - Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Auto Loans Receivable | ||
Auto loans receivable, Originated in current year | $ 285.4 | $ 198.1 |
Auto loans receivable, Originated in year before current year | 84.6 | 97.8 |
Auto loans receivable, Originated two years before current year | 51.7 | 39.7 |
Auto loans receivable, Originated three years before current year | 17.3 | 31.5 |
Auto loans receivable, Originated four years before current year | 10.6 | 9 |
Auto loans receivable, Originated five years or more before current year | 1.6 | 0.9 |
Total auto loans receivable | 451.2 | 377 |
Financing Receivable, Allowance for Credit Loss, Writeoff, by Origination Year [Abstract] | ||
Current-period gross write-offs, 2023 origination | 10.5 | |
Current-period gross write-offs, 2022 origination | 33.6 | |
Current-period gross write-offs, 2021 origination | 16.4 | |
Current-period gross write-offs, 2020 origination | 4.6 | |
Current-period gross write-offs, 2019 origination | 2.5 | |
Current-period gross write-offs, Prior to 2019 origination | 0.7 | |
Current-period gross write-offs | 68.3 | 13.9 |
Platinum | ||
Auto Loans Receivable | ||
Auto loans receivable, Originated in current year | 163.9 | 21.9 |
Auto loans receivable, Originated in year before current year | 14.8 | 12.9 |
Auto loans receivable, Originated two years before current year | 8.2 | 6.4 |
Auto loans receivable, Originated three years before current year | 3.3 | 7.4 |
Auto loans receivable, Originated four years before current year | 3.1 | 2.2 |
Auto loans receivable, Originated five years or more before current year | 0.5 | 0.2 |
Total auto loans receivable | 193.8 | 51 |
Gold | ||
Auto Loans Receivable | ||
Auto loans receivable, Originated in current year | 64.3 | 53.7 |
Auto loans receivable, Originated in year before current year | 35.9 | 30 |
Auto loans receivable, Originated two years before current year | 18.5 | 12.9 |
Auto loans receivable, Originated three years before current year | 6.8 | 10.6 |
Auto loans receivable, Originated four years before current year | 4.5 | 3.2 |
Auto loans receivable, Originated five years or more before current year | 0.8 | 0.4 |
Total auto loans receivable | 130.8 | 110.8 |
Silver | ||
Auto Loans Receivable | ||
Auto loans receivable, Originated in current year | 50.2 | 61.9 |
Auto loans receivable, Originated in year before current year | 33 | 29.8 |
Auto loans receivable, Originated two years before current year | 16.2 | 10.4 |
Auto loans receivable, Originated three years before current year | 5.2 | 8 |
Auto loans receivable, Originated four years before current year | 2.8 | 1.9 |
Auto loans receivable, Originated five years or more before current year | 0.3 | 0.1 |
Total auto loans receivable | 107.7 | 112.1 |
Bronze | ||
Auto Loans Receivable | ||
Auto loans receivable, Originated in current year | 6.7 | 41.4 |
Auto loans receivable, Originated in year before current year | 0.7 | 17.1 |
Auto loans receivable, Originated two years before current year | 6 | 7.4 |
Auto loans receivable, Originated three years before current year | 1.5 | 3.7 |
Auto loans receivable, Originated four years before current year | 0.1 | 1 |
Auto loans receivable, Originated five years or more before current year | 0 | 0.1 |
Total auto loans receivable | 15 | 70.7 |
Copper | ||
Auto Loans Receivable | ||
Auto loans receivable, Originated in current year | 0.3 | 19.2 |
Auto loans receivable, Originated in year before current year | 0.2 | 8 |
Auto loans receivable, Originated two years before current year | 2.8 | 2.6 |
Auto loans receivable, Originated three years before current year | 0.5 | 1.8 |
Auto loans receivable, Originated four years before current year | 0.1 | 0.7 |
Auto loans receivable, Originated five years or more before current year | 0 | 0.1 |
Total auto loans receivable | $ 3.9 | $ 32.4 |
Auto Loans Receivable - Finan_2
Auto Loans Receivable - Financing Receivable, Allowance for Credit Loss (Details) - USD ($) $ in Millions | 12 Months Ended | |||||
Oct. 01, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Balance as of beginning of year | $ 57.5 | $ 0 | ||||
Provision for credit losses | 45.9 | 43.8 | [1] | $ 0 | ||
Initial allowance for purchased credit-deteriorated loans | 0 | 21.7 | ||||
Write-offs | (68.3) | (13.9) | ||||
Recoveries | [2] | 27.3 | 5.9 | |||
Sold loans | (16.1) | 0 | ||||
Balance as of end of year | 46.3 | 57.5 | 0 | |||
Sold auto loans receivable, aggregate amortized cost | 60.6 | |||||
Proceeds from the sale of auto loans receivable | 68.7 | 0 | 0 | |||
Gain on sale of auto loans receivable | $ 8.1 | $ 0 | $ 0 | |||
CIG Financial Acquisition | ||||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||||
Provision for credit losses | $ 34.2 | |||||
[1] (1) Reflects activity that occurred after the acquisition of CIG Financial on October 1, 2022. Provision for credit losses includes initial credit loss expense of $34.2 million associated with the auto loan portfolio acquired as part of the acquisition. (2) Includes proceeds from the recovery of vehicle collateral, net of costs incurred. |
Auto Loans Receivable - Finan_3
Auto Loans Receivable - Financing Receivable, Past Due (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Past Due [Line Items] | ||
Total auto loans receivable | $ 451.2 | $ 377 |
Total Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Total auto loans receivable | 29.2 | 19.7 |
31-60 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total auto loans receivable | 20.7 | 13 |
61-90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total auto loans receivable | 5.4 | 4.1 |
Greater than 90 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Total auto loans receivable | 3.1 | 2.6 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Total auto loans receivable | $ 422 | $ 357.3 |
Inventory and Vehicle Floorpl_3
Inventory and Vehicle Floorplan Payable (Components of Inventory) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Inventory [Line Items] | ||
Inventory | $ 3,033.4 | $ 2,048.3 |
New Vehicle [Member] | ||
Inventory [Line Items] | ||
Inventory | 1,948.6 | 1,009.7 |
Used Vehicle [Member] | ||
Inventory [Line Items] | ||
Inventory | 815.3 | 789.1 |
Parts and Service [Member] | ||
Inventory [Line Items] | ||
Inventory | $ 269.5 | $ 249.5 |
Inventory and Vehicle Floorpl_4
Inventory and Vehicle Floorplan Payable (Components of Vehicle Floorplan Payable) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | $ 3,382.4 | $ 2,109.3 |
Trade [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | 1,760 | 946.6 |
Non-Trade [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan payable | $ 1,622.4 | $ 1,162.7 |
Inventory and Vehicle Floorpl_5
Inventory and Vehicle Floorplan Payable (Narrative) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Floorplan Payable [Line Items] | ||
Vehicle floorplan facilities, amount outstanding | $ 3,382.4 | $ 2,109.3 |
Used vehicle floorplan facilities, remaining borrowing capacity | 225.9 | |
Used vehicle floorplan facilities, current borrowing capacity | $ 0.9 | |
New Vehicle Floorplan Facilities [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan facilities, weighted average interest rates on amounts outstanding | 7.10% | 5.90% |
Vehicle floorplan facilities, maximum borrowing capacity | $ 4,700 | |
Vehicle floorplan facilities, amount outstanding | $ 2,800 | |
Used Vehicle Floorplan Facilities [Member] | ||
Floorplan Payable [Line Items] | ||
Vehicle floorplan facilities, weighted average interest rates on amounts outstanding | 6.90% | 5.90% |
Vehicle floorplan facilities, maximum borrowing capacity | $ 835 | |
Vehicle floorplan facilities, amount outstanding | $ 609.1 |
Property and Equipment, Net (De
Property and Equipment, Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 5,924.3 | $ 5,542.3 | |
Less: accumulated depreciation and amortization | (2,132.7) | (1,935.1) | |
Property and equipment, net | 3,791.6 | 3,607.2 | |
Interest costs capitalized | 1.4 | 2.2 | $ 0.8 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,539.5 | 1,507.8 | |
Buildings and improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 2,898.1 | 2,671.6 | |
Furniture, fixtures, and equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,486.7 | $ 1,362.9 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 1,465.8 | $ 1,320.1 | $ 1,235.3 |
Franchise rights - indefinite-lived | 876.2 | 816.2 | |
Other intangible assets | 68 | 30.7 | |
Intangible assets, gross | 944.2 | 846.9 | |
Less: accumulated amortization | (16.4) | (9.9) | |
Intangible assets, net | $ 927.8 | $ 837 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets, Net (Goodwill) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning balance | $ 3,248.4 | $ 3,163.6 | |
Goodwill, Impaired, Accumulated Impairment Loss | (1,928.3) | (1,928.3) | |
Goodwill, beginning balance | 1,320.1 | 1,235.3 | |
Acquisitions, dispositions, and other adjustments, net | [1] | 145.7 | 84.8 |
Goodwill, gross, ending balance | 3,394.1 | 3,248.4 | |
Goodwill, Impaired, Accumulated Impairment Loss | (1,928.3) | (1,928.3) | |
Goodwill, ending balance | 1,465.8 | 1,320.1 | |
Reporting Unit, Domestic [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning balance | 376.3 | 368.7 | |
Goodwill, Impaired, Accumulated Impairment Loss | (140) | (140) | |
Goodwill, beginning balance | 236.3 | 228.7 | |
Acquisitions, dispositions, and other adjustments, net | [1] | (1.8) | 7.6 |
Goodwill, gross, ending balance | 374.5 | 376.3 | |
Goodwill, Impaired, Accumulated Impairment Loss | (140) | (140) | |
Goodwill, ending balance | 234.5 | 236.3 | |
Reporting Unit, Import [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning balance | 518.7 | 517.9 | |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | |
Goodwill, beginning balance | 518.7 | 517.9 | |
Acquisitions, dispositions, and other adjustments, net | [1] | 7.9 | 0.8 |
Goodwill, gross, ending balance | 526.6 | 518.7 | |
Goodwill, Impaired, Accumulated Impairment Loss | 0 | 0 | |
Goodwill, ending balance | 526.6 | 518.7 | |
Reporting Unit, Premium Luxury [Member] | |||
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning balance | 739.5 | 741.5 | |
Goodwill, Impaired, Accumulated Impairment Loss | (257.4) | (257.4) | |
Goodwill, beginning balance | 482.1 | 484.1 | |
Acquisitions, dispositions, and other adjustments, net | [1] | 0 | (2) |
Goodwill, gross, ending balance | 739.5 | 739.5 | |
Goodwill, Impaired, Accumulated Impairment Loss | (257.4) | (257.4) | |
Goodwill, ending balance | 482.1 | 482.1 | |
Reporting Unit, Other | |||
Goodwill [Roll Forward] | |||
Goodwill, gross, beginning balance | [2] | 1,613.9 | 1,535.5 |
Goodwill, Impaired, Accumulated Impairment Loss | [2] | (1,530.9) | (1,530.9) |
Goodwill, beginning balance | 83 | 4.6 | |
Acquisitions, dispositions, and other adjustments, net | [1] | 139.6 | 78.4 |
Goodwill, gross, ending balance | [2] | 1,753.5 | 1,613.9 |
Goodwill, Impaired, Accumulated Impairment Loss | [2] | (1,530.9) | (1,530.9) |
Goodwill, ending balance | 222.6 | 83 | |
Single Reporting Unit (before change in reporting units) | |||
Goodwill [Roll Forward] | |||
Goodwill, Impaired, Accumulated Impairment Loss | (1,470) | (1,470) | |
Goodwill, Impaired, Accumulated Impairment Loss | $ (1,470) | $ (1,470) | |
[1]Includes amounts reclassified to held for sale and related adjustments, which are presented in Other Current Assets in our Consolidated Balance Sheet as of period end.[2]Gross goodwill balance and accumulated impairment losses reflected in “Other” include $1.47 billion associated with our single reporting unit (prior to September 30, 2008, our reporting unit reporting structure was comprised of a single reporting unit). Gross goodwill balance reflected in “Other” also includes amounts associated with the Collision Center, Parts Center, AutoNation Finance and AutoNation Mobile Service reporting units, as applicable in a given period. |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets, Net (Intangible Assets) (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | $ 876.2 | $ 816.2 |
AN Reportable Segment, Domestic [Member] | ||
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | 231.1 | |
AN Reportable Segment, Import [Member] | ||
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | 196.6 | |
AN Reportable Segment, Premium Luxury [Member] | ||
Indefinite-lived Intangible Assets by Segment [Line Items] | ||
Franchise rights - indefinite-lived | $ 448.5 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | ||
Assets and Liabilities, Lessee [Abstract] | |||
Operating Lease Assets | $ 392.1 | $ 323.5 | |
Finance Lease Assets | 351.1 | 361.4 | |
Total right-of-use Assets | 743.2 | 684.9 | |
Current Operating Lease Liabilities | 41.2 | 39.5 | |
Current Finance Lease Liabilities | 46.9 | 39 | |
Noncurrent Operating Lease Liabilities | 363.2 | 296.9 | |
Noncurrent Finance Lease Liabilities | 349.6 | 363.2 | |
Total lease liabilities | $ 800.9 | $ 738.6 | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | OTHER ASSETS, PROPERTY AND EQUIPMENT, NET | OTHER ASSETS, PROPERTY AND EQUIPMENT, NET | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current maturities of long-term debt, Vehicle floorplan payable | Current maturities of long-term debt, Vehicle floorplan payable | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Long-term debt, net of current maturities | Long-term debt, net of current maturities | |
Lease Cost [Abstract] | |||
Weighted average remaining lease term, Operating leases | 12 years | 11 years | |
Weighted average remaining lease term, Finance leases | 13 years | 14 years | |
Weighted average discount rate, Operating leases (percent) | 5.71% | 5.25% | |
Weighted average discount rate, finance leases (percent) | 4.43% | 4.47% | |
Operating lease cost | $ 62.3 | $ 56 | |
Finance lease cost, Amortization of ROU assets | 24.6 | 20.9 | |
Finance lease cost, Interest on lease liabilities | 17.8 | 13.3 | |
Short-term lease cost | [1] | 11.3 | 10.6 |
Variable lease cost | 12 | 10.5 | |
Sublease Income | (3.6) | (3.6) | |
Net lease cost | 124.4 | 107.7 | |
Cash Flow Activities, Lessee [Abstract] | |||
Operating cash flows from operating leases | 61.4 | 56.8 | |
Operating cash flows from finance leases | [2] | 63.7 | 36.2 |
Payment of other debt obligations | 12.3 | 11.3 | |
Adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new operating lease liabilities | 111.7 | 78.7 | |
Adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new finance lease liabilities | 54.7 | $ 90.8 | |
Maturity of Lease Liabilities [Abstract] | |||
Maturity of Operating Lease Liabilities, Twelve months ended December 31, 2024 | 58.1 | ||
Maturity of Operating Lease Liabilities, Twelve months ended December 31, 2025 | 58 | ||
Maturity of Operating Lease Liabilities, Twelve months ended December 31, 2026 | 53.4 | ||
Maturity of Operating Lease Liabilities, Twelve months ended December 31, 2027 | 50.6 | ||
Maturity of Operating Lease Liabilities, Twelve months ended December 31, 2028 | 47.3 | ||
Maturity of Operating Lease Liabilities, Thereafter | 304.5 | ||
Total Operating Lease Payments | 571.9 | ||
Less: interest (Operating leases) | (167.5) | ||
Present Value of Operating lease liabilities | 404.4 | ||
Maturity of Finance Lease Liabilities, Twelve months ended December 31, 2024 | 59.8 | ||
Maturity of Finance Lease Liabilities, Twelve months ended December 31, 2025 | 83 | ||
Maturity of Finance Lease Liabilities, Twelve months ended December 31, 2026 | 24.1 | ||
Maturity of Finance Lease Liabilities, Twelve months ended December 31, 2027 | 25.3 | ||
Maturity of Finance Lease Liabilities, Twelve months ended December 31, 2028 | 25 | ||
Maturity of Finance Lease Liabilities, Thereafter | 284.1 | ||
Total Finance Lease Payments | 501.3 | ||
Less: interest (Finance leases) | (104.8) | ||
Present value of Finance lease liabilities | $ 396.5 | ||
Minimum [Member] | |||
Lessee, General Description [Abstract] | |||
Lease Renewal Terms | 1 year | ||
Maximum [Member] | |||
Lessee, General Description [Abstract] | |||
Lease Renewal Terms | 5 years | ||
Land and Building [Member] | Minimum [Member] | |||
Lessee, General Description [Abstract] | |||
Lease Terms | 1 year | ||
Land and Building [Member] | Maximum [Member] | |||
Lessee, General Description [Abstract] | |||
Lease Terms | 25 years | ||
Equipment [Member] | Minimum [Member] | |||
Lessee, General Description [Abstract] | |||
Lease Terms | 1 year | ||
Equipment [Member] | Maximum [Member] | |||
Lessee, General Description [Abstract] | |||
Lease Terms | 5 years | ||
Vehicles [Member] | Minimum [Member] | |||
Lessee, General Description [Abstract] | |||
Service loaner vehicle leases, lease terms | 6 months | ||
Vehicles [Member] | Maximum [Member] | |||
Lessee, General Description [Abstract] | |||
Service loaner vehicle leases, lease terms | 18 months | ||
[1] (1) Includes leases with a term of one month or less. (1) Includes the interest component of payments made on finance leases as well as principal payments on vehicle floorplan payables with trade lenders for certain service loaner vehicle leases. |
Debt (Long-Term Debt) (Details)
Debt (Long-Term Debt) (Details) - USD ($) $ in Millions | 5 Months Ended | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instruments [Abstract] | |||
Less: current maturities | $ (462.4) | $ (462.4) | $ (12.6) |
Long-term debt, net of current maturities | 3,127.9 | 3,127.9 | 3,586.9 |
Recourse | |||
Debt Instruments [Abstract] | |||
Long-term debt | 3,612.2 | 3,612.2 | 3,625.5 |
Less: unamortized debt discounts and debt issuance costs | (21.9) | (21.9) | (26) |
Less: current maturities | (462.4) | (462.4) | (12.6) |
Long-term debt, net of current maturities | $ 3,127.9 | $ 3,127.9 | 3,586.9 |
Senior Notes at Three Point Five Percent Due 2024 [Member] | Senior Notes [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Percentage interest on debt instrument | 3.50% | 3.50% | |
Debt instrument, maturity date | Nov. 15, 2024 | ||
Senior notes | $ 450 | $ 450 | 450 |
Senior Notes at Four Point Five Percent Due 2025 [Member] | Senior Notes [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Percentage interest on debt instrument | 4.50% | 4.50% | |
Debt instrument, maturity date | Oct. 01, 2025 | ||
Senior notes | $ 450 | $ 450 | 450 |
Senior Notes at Three Point Eight Percent Due 2027 [Member] | Senior Notes [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Percentage interest on debt instrument | 3.80% | 3.80% | |
Debt instrument, maturity date | Nov. 15, 2027 | ||
Senior notes | $ 300 | $ 300 | 300 |
Senior Notes at One Point Nine Five Percent Due 2028 [Member] | Senior Notes [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Percentage interest on debt instrument | 1.95% | 1.95% | |
Debt instrument, maturity date | Aug. 01, 2028 | ||
Senior notes | $ 400 | $ 400 | 400 |
Senior Notes at Four Point Seven Five Percent Due 2030 [Member] | Senior Notes [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Percentage interest on debt instrument | 4.75% | 4.75% | |
Debt instrument, maturity date | Jun. 01, 2030 | ||
Senior notes | $ 500 | $ 500 | 500 |
Senior Notes at Two Point Four Percent Due 2031 [Member] | Senior Notes [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Percentage interest on debt instrument | 2.40% | 2.40% | |
Debt instrument, maturity date | Aug. 01, 2031 | ||
Senior notes | $ 450 | $ 450 | 450 |
Senior Notes at Three Point Eight Five Percent Due 2032 [Member] | Senior Notes [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Percentage interest on debt instrument | 3.85% | 3.85% | |
Debt instrument, maturity date | Mar. 01, 2032 | ||
Senior notes | $ 700 | $ 700 | 700 |
Revolving Credit Facility Due 2028 [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Revolving credit facility, amount outstanding | $ 0 | $ 0 | |
Revolving Credit Facility Due 2028 [Member] | Line of Credit [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Debt instrument, maturity date | Jul. 18, 2028 | Jul. 18, 2028 | |
Revolving Credit Facility Due 2025 [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Revolving credit facility, amount outstanding | 0 | ||
Other Debt [Member] | Recourse | |||
Debt Instruments [Abstract] | |||
Other debt | $ 362.2 | $ 362.2 | $ 375.5 |
Debt (Maturities of Long-Term D
Debt (Maturities of Long-Term Debt) (Details) - Recourse - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
2024 | $ 462.1 | |
2025 | 518.9 | |
2026 | 13.9 | |
2027 | 315.8 | |
2028 | 416.2 | |
Thereafter | 1,885.3 | |
Long-term debt | $ 3,612.2 | $ 3,625.5 |
Debt (Senior Unsecured Notes an
Debt (Senior Unsecured Notes and Credit Agreement) (Details) $ in Millions | 5 Months Ended | 12 Months Ended | ||
Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jul. 18, 2023 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Instrument [Line Items] | ||||
Letters of credit, amount outstanding | $ 0.8 | $ 0.8 | ||
Senior Notes at Three Point Five Percent Due 2024 [Member] | Senior Notes [Member] | Recourse | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 450 | $ 450 | $ 450 | |
Percentage interest on debt instrument | 3.50% | 3.50% | ||
Debt instrument, maturity date | Nov. 15, 2024 | |||
Senior Notes at Four Point Five Percent Due 2025 [Member] | Senior Notes [Member] | Recourse | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 450 | $ 450 | 450 | |
Percentage interest on debt instrument | 4.50% | 4.50% | ||
Debt instrument, maturity date | Oct. 01, 2025 | |||
Senior Notes at Three Point Eight Percent Due 2027 [Member] | Senior Notes [Member] | Recourse | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 300 | $ 300 | 300 | |
Percentage interest on debt instrument | 3.80% | 3.80% | ||
Debt instrument, maturity date | Nov. 15, 2027 | |||
Senior Notes at One Point Nine Five Percent Due 2028 [Member] | Senior Notes [Member] | Recourse | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 400 | $ 400 | 400 | |
Percentage interest on debt instrument | 1.95% | 1.95% | ||
Debt instrument, maturity date | Aug. 01, 2028 | |||
Senior Notes at Four Point Seven Five Percent Due 2030 [Member] | Senior Notes [Member] | Recourse | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 500 | $ 500 | 500 | |
Percentage interest on debt instrument | 4.75% | 4.75% | ||
Debt instrument, maturity date | Jun. 01, 2030 | |||
Senior Notes at Two Point Four Percent Due 2031 [Member] | Senior Notes [Member] | Recourse | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 450 | $ 450 | 450 | |
Percentage interest on debt instrument | 2.40% | 2.40% | ||
Debt instrument, maturity date | Aug. 01, 2031 | |||
Senior Notes at Three Point Eight Five Percent Due 2032 [Member] | Senior Notes [Member] | Recourse | ||||
Debt Instrument [Line Items] | ||||
Senior notes | $ 700 | $ 700 | 700 | |
Percentage interest on debt instrument | 3.85% | 3.85% | ||
Debt instrument, maturity date | Mar. 01, 2032 | |||
Revolving Credit Facility Due 2025 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity under revolving credit facility | $ 1,800 | |||
Debt Instrument Covenant Terms Maximum Leverage Ratio | 3.75 | |||
Revolving Credit Facility Due 2025 [Member] | Recourse | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, amount outstanding | $ 0 | |||
Revolving Credit Facility Due 2028 [Member] | ||||
Debt Instrument [Line Items] | ||||
Maximum borrowing capacity under revolving credit facility | $ 1,900 | $ 1,900 | ||
Debt Instrument Covenant Terms Maximum Leverage Ratio | 4.25 | 4.25 | ||
Additional borrowing capacity under accordion feature of revolving credit facility | $ 500 | $ 500 | ||
Revolving credit facilities letter of credit sublimit | 200 | 200 | ||
Additional borrowing capacity under revolving credit facility | 1,900 | 1,900 | ||
Revolving Credit Facility Due 2028 [Member] | Recourse | ||||
Debt Instrument [Line Items] | ||||
Revolving credit facility, amount outstanding | $ 0 | $ 0 | ||
Revolving Credit Facility Due 2028 [Member] | Line of Credit [Member] | Recourse | ||||
Debt Instrument [Line Items] | ||||
Debt instrument, maturity date | Jul. 18, 2028 | Jul. 18, 2028 | ||
Revolving Credit Facility Due 2028 [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee on undrawn amounts (percent) | 0.125% | |||
Revolving Credit Facility Due 2028 [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Commitment fee on undrawn amounts (percent) | 0.20% | |||
Revolving Credit Facility Due 2028 [Member] | Base Rate [Member] | Minimum [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates (percent) | 0.125% | |||
Revolving Credit Facility Due 2028 [Member] | Base Rate [Member] | Maximum [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates (percent) | 0.50% | |||
Revolving Credit Facility Due 2028 [Member] | Secured Overnight Financing Rate (SOFR) | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Credit Spread Adjustment on Credit Agreement | 0.10% | |||
Revolving Credit Facility Due 2028 [Member] | Secured Overnight Financing Rate (SOFR) | Minimum [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates (percent) | 1.125% | |||
Revolving Credit Facility Due 2028 [Member] | Secured Overnight Financing Rate (SOFR) | Maximum [Member] | Line of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable interest rates (percent) | 1.50% |
Debt (Other Long-Term Debt and
Debt (Other Long-Term Debt and Commercial Paper) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Aug. 16, 2023 | |
Debt Instrument [Line Items] | |||
Commercial paper, maximum aggregate amount outstanding permitted | $ 1,900 | $ 1,000 | |
Commercial paper, amount outstanding | $ 440 | $ 50 | |
Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Weighted-average annual interest rate | 5.90% | 4.30% | |
Weighted Average [Member] | Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Maturity period of debt | 6 days | 1 day | |
Maximum [Member] | Commercial Paper [Member] | |||
Debt Instrument [Line Items] | |||
Maturity period of debt | 397 days |
Debt (Non-Recourse Debt) (Detai
Debt (Non-Recourse Debt) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |
Feb. 16, 2024 | Dec. 31, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | |||
Non-Recourse Debt, Current | $ (8.8) | $ (10.7) | |
NON-RECOURSE DEBT, NET OF CURRENT PORTION | 249.6 | 312.9 | |
Auto loans receivable | 451.2 | 377 | |
Variable Interest Entity, Primary Beneficiary | Asset Pledged as Collateral | |||
Debt Instrument [Line Items] | |||
Restricted cash included in Current Assets | 4.3 | 14.9 | |
Auto loans receivable | 50.8 | 151.4 | |
Nonrecourse | |||
Debt Instrument [Line Items] | |||
Non Recourse Debt | 259.9 | 328.7 | |
Less: unamortized debt discounts and debt issuance costs | (1.5) | (5.1) | |
Non-Recourse Debt, Current | (8.8) | (10.7) | |
NON-RECOURSE DEBT, NET OF CURRENT PORTION | 249.6 | 312.9 | |
Warehouse Facilities | Nonrecourse | |||
Debt Instrument [Line Items] | |||
Non Recourse Debt | $ 209.4 | 181.8 | |
Warehouse Facilities | Nonrecourse | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Warehouse Facilities Maximum Borrowing Capacity | $ 400 | ||
Warehouse Facility One [Member] | Nonrecourse | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Oct. 01, 2024 | ||
Warehouse Facility Two [Member] | Nonrecourse | Subsequent Event [Member] | |||
Debt Instrument [Line Items] | |||
Debt instrument, maturity date | Jan. 31, 2025 | ||
Term securitization debt | Nonrecourse | Variable Interest Entity, Primary Beneficiary | |||
Debt Instrument [Line Items] | |||
Non Recourse Debt | $ 50.5 | $ 146.9 | |
Term securitization debt | Minimum [Member] | Nonrecourse | Variable Interest Entity, Primary Beneficiary | |||
Debt Instrument [Line Items] | |||
Percentage interest on debt instrument | 1.49% | ||
Term securitization debt | Maximum [Member] | Nonrecourse | Variable Interest Entity, Primary Beneficiary | |||
Debt Instrument [Line Items] | |||
Percentage interest on debt instrument | 4.45% |
Chargeback Liability (Details)
Chargeback Liability (Details) - Chargeback Reserves [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Chargeback liabilities, beginning balance | $ 197 | $ 171 | $ 142.1 |
Add: Provisions | 168 | 192.3 | 168.9 |
Deduct: Chargebacks | (164.6) | (166.3) | (140) |
Chargeback liabilities, ending balance | $ 200.4 | $ 197 | $ 171 |
Self-Insurance (Details)
Self-Insurance (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Insurance | ||
Self Insurance Reserve | $ 102.3 | $ 94.5 |
Other Current Liabilities | ||
Insurance | ||
Self Insurance Reserve | 42.3 | 37.6 |
Other Noncurrent Liabilities | ||
Insurance | ||
Self Insurance Reserve | $ 60 | $ 56.9 |
Income Taxes Components of Inco
Income Taxes Components of Income Tax Provision From Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 245.6 | $ 368.7 | $ 374.2 |
State | 64.9 | 87.4 | 78.5 |
Federal and state deferred | 19 | 0.8 | (17.2) |
Change in valuation allowance, net | 1 | 0.2 | (0.2) |
Adjustments and settlements | (0.5) | (1.3) | (0.2) |
Income tax provision | $ 330 | $ 455.8 | $ 435.1 |
Reconciliation of Income Tax Pr
Reconciliation of Income Tax Provision (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Income tax provision at statutory rate | $ 283.5 | $ 385 | $ 379.8 |
Other non-deductible expenses, net | 0.5 | 7.9 | (1.2) |
State income taxes, net of federal benefit | 53.4 | 72.8 | 60.7 |
Income tax provision, excluding other reconciling items | 337.4 | 465.7 | 439.3 |
Adjustments and settlements | (0.5) | (1.3) | (0.2) |
Federal and state tax credits | (2.8) | (4.5) | (1) |
Other, net | (5.1) | (4.3) | (2.8) |
Income tax provision | $ 330 | $ 455.8 | $ 435.1 |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Income tax provision at statutory rate, % | 21% | 21% | 21% |
Other non-deductible expenses, net, % | 0% | 0.40% | (0.10%) |
State income taxes, net of federal benefit, % | 4% | 4% | 3.40% |
Income tax provision, excluding other reconciling items, % | 25% | 25.40% | 24.30% |
Change in valuation allowance, net, % | 0.10% | 0% | 0% |
Adjustments and settlements, % | 0% | (0.10%) | 0% |
Federal and state tax credits, % | (0.20%) | (0.20%) | 0% |
Other, net, % | (0.50%) | (0.20%) | (0.20%) |
Income tax provision, % | 24.40% | 24.90% | 24.10% |
Income Taxes Deferred Income Ta
Income Taxes Deferred Income Tax Asset and Liability Components (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred income tax assets: | ||
Inventory | $ 31.9 | $ 23.7 |
Receivable allowances | 0.4 | 12 |
Warranty, chargeback, and self - insurance liabilities | 72.6 | 70.2 |
Other accrued liabilities | 30.7 | 27.7 |
Deferred compensation | 31.7 | 26.5 |
Stock-based compensation | 9 | 7.7 |
Lease liabilities | 162.9 | 148.9 |
Loss carryforwards—state | 22.7 | 5.8 |
Other, net | 20.9 | 11.5 |
Total deferred income tax assets | 382.8 | 334 |
Valuation allowance | (7.1) | (4.6) |
Deferred income tax assets, net of valuation allowance | 375.7 | 329.4 |
Deferred income tax liabilities: | ||
Long-lived assets (intangible assets and property) | (298.7) | (258.4) |
Investments - unrealized appreciation | (2.8) | (1.6) |
Right-of-use assets | (150.2) | (137.2) |
Other, net | (9) | (8.7) |
Total deferred income tax liabilities | (460.7) | (405.9) |
Net deferred income tax liabilities | $ (85) | $ (76.5) |
Income Taxes Deferred Income _2
Income Taxes Deferred Income Tax Asset and Liability Components - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2023 | Dec. 31, 2022 |
Valuation Allowance [Line Items] | ||
Net deferred income tax liabilities | $ 85 | $ 76.5 |
Income taxes receivable | 11.1 | 20.2 |
State tax credits | 1.2 | |
Federal and state loss carryforwards and state tax credits, deferred tax asset | 22.7 | |
State net operating loss carryforwards, valuation allowance | 7.1 | $ 4.6 |
Domestic Tax Authority | ||
Valuation Allowance [Line Items] | ||
Gross domestic state net operating loss carryforwards | 63.1 | |
State and Local Jurisdiction | ||
Valuation Allowance [Line Items] | ||
Gross domestic state net operating loss carryforwards | 161.2 | |
Operating loss carryforwards not subject to expiration | 30.7 | |
Operating loss carryforwards subject to expiration dates from 2024 through 2043 | 130.5 | |
Deferred Tax Asset, Loss Carry Forwards | ||
Valuation Allowance [Line Items] | ||
State net operating loss carryforwards, valuation allowance | $ 7.1 |
Unrecognized Tax Benefits and T
Unrecognized Tax Benefits and Tax Reform (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Balance at January 1 | $ 5.5 | $ 6.9 | $ 7 |
Additions based on tax positions related to the current year | 0 | 0 | 0 |
Additions for tax positions of prior years | 1.2 | 0.6 | 0.8 |
Reductions for tax positions of prior years | 0 | 0 | 0 |
Reductions for expirations of statute of limitations | (1.6) | (1.4) | (0.9) |
Settlements | 0 | (0.6) | 0 |
Balance at December 31 | 5.1 | 5.5 | 6.9 |
Unrecognized tax benefits, accumulated interest and penalties | 10.7 | 9.6 | 9.1 |
Deferred tax assets related to unrecognized tax benefits | 3.6 | 3.4 | 3.6 |
Net unrecognized tax benefits, associated interest, penalties and deferred tax asset that if resolved would impact effective tax rate | 12.2 | 11.7 | 12.4 |
Recognized interest and penalties | $ 0.8 | $ 0.4 | $ 0.6 |
Shareholders' Equity (Shares Re
Shareholders' Equity (Shares Repurchased Under Share Repurchase Program) (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 12 Months Ended | |||
Nov. 30, 2022 | Apr. 30, 2021 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class of Stock [Line Items] | |||||
Aggregate purchase price | $ 871.7 | $ 1,710.2 | $ 2,303.2 | ||
Excise tax accrual on share repurchases | $ 8.1 | ||||
Common Stock [Member] | |||||
Class of Stock [Line Items] | |||||
Treasury stock cancellation, Shares | 23,000,000 | 16,000,000 | 23,000,000 | 16,000,000 | |
Stock Repurchase Program Board Authorized Repurchases [Member] | |||||
Class of Stock [Line Items] | |||||
Shares repurchased (in shares) | 6,400,000 | 15,600,000 | 22,300,000 | ||
Aggregate purchase price | $ 863.6 | $ 1,710.2 | $ 2,303.2 | ||
Average purchase price per share (in dollars per share) | $ 134.68 | $ 109.86 | $ 103.18 | ||
Remaining amount available for share repurchase | $ 320.8 |
Shareholders' Equity (Preferred
Shareholders' Equity (Preferred Stock) (Details) | Dec. 31, 2023 $ / shares shares |
Stockholders' Equity Note [Abstract] | |
Preferred Stock, Shares Authorized | 5,000,000 |
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 |
Preferred stock, shares issued | 0 |
Preferred stock, shares outstanding | 0 |
Shareholders' Equity (Common St
Shareholders' Equity (Common Stock Issued With The Exercise Of Stock Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stockholders' Equity Note [Abstract] | |||
Shares issued (in actual number of shares) | 37,996 | 71,030 | 1,025,673 |
Proceeds from the exercise of stock options | $ 1.9 | $ 3.4 | $ 54.5 |
Average exercise price per share (in dollars per share) | $ 50.34 | $ 47.94 | $ 53.13 |
Shareholders' Equity (Shares Is
Shareholders' Equity (Shares Issued And Shares Surrendered To Satisfy Tax Withholdings In Connection With Restricted Stock Units) (Details) - Restricted Stock Units (RSUs) [Member] - shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares issued (in shares) | 0.6 | 0.8 | 0.7 |
Shares surrendered to AutoNation to satisfy tax withholding obligations (in shares) | 0.2 | 0.3 | 0.2 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) | Dec. 31, 2023 shares |
Employee [Member] | Employee Equity and Incentive Plan 2017 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 5,500,000 |
Director [Member] | Non-Employee Director Equity Plan 2014 [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 600,000 |
Stock-Based Compensation (Restr
Stock-Based Compensation (Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 03, 2023 | |
Share-Based Payment Arrangement, Additional Disclosure | ||||
Stock-based compensation | $ 39.7 | $ 31.5 | $ 35 | |
Tax benefits related to vesting of RSUs and exercise of stock options | $ 9 | $ 9.7 | $ 17.2 | |
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Nonvested, shares, beginning balance | 1,200,000 | |||
Nonvested, weighted-average grant date fair value, beginning balance (in dollars per share) | $ 75.14 | |||
Granted, shares | 400,000 | |||
Granted, weighted-average grant date fair value (in dollars per share) | $ 139.11 | $ 112.66 | $ 85.45 | |
Vested, shares | (500,000) | |||
Vested, weighted-average grant date fair value (in dollars per share) | $ 60.40 | |||
Forfeited, shares | (100,000) | |||
Forfeited, weighted-average grant date fair value (in dollars per share) | $ 112.36 | |||
Nonvested, shares, ending balance | 1,000,000 | 1,200,000 | ||
Nonvested, weighted-average grant date fair value, ending balance (in dollars per share) | $ 108.26 | $ 75.14 | ||
Share-Based Payment Arrangement, Additional Disclosure | ||||
Total fair value of RSU's vested | $ 76 | $ 85.7 | $ 51.8 | |
Stock-based compensation | 39.7 | 31.5 | 35 | |
Tax benefit related to stock-based compensation expense | 4.5 | $ 4 | $ 2.4 | |
Unrecognized compensation cost related to non-vested stock-based compensation arrangements | $ 37.4 | |||
Unrecognized compensation cost expected to be recognized over weighted average period (in years) | 1 year 6 months 3 days | |||
Director [Member] | Restricted Stock Units (RSUs) [Member] | Non-Employee Director Equity Plan 2014 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of restricted stock units granted to each non-employee director (in shares) | 2,331 | |||
Employee [Member] | Restricted Stock Units (RSUs) [Member] | Employee Equity and Incentive Plan 2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||||
Granted, shares | 400,000 | |||
Employee [Member] | Time-based Restricted Stock Units [Member] | Employee Equity and Incentive Plan 2017 [Member] | Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Employee [Member] | Time-based Restricted Stock Units [Member] | Employee Equity and Incentive Plan 2017 [Member] | Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 4 years | |||
Employee [Member] | Performance-based RSUs [Member] | Employee Equity and Incentive Plan 2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Measurement Period (in years) | 3 years | |||
Employee [Member] | Market-based RSUs [Member] | Employee Equity and Incentive Plan 2017 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting period (in years) | 3 years | |||
Measurement Period (in years) | 3 years | |||
Share-Based Compensation Arrangement by Share-Based Payment Award, Fair Value Assumptions and Methodology [Abstract] | ||||
Monte Carlo Simulation, Risk Free Interest Rate | 4.60% | |||
Monte Carlo Simulation, Expected Volatility Rate | 42.89% | |||
Monte Carlo Simulation, Expected Dividend Rate | 0% |
Stock-Based Compensation (Stock
Stock-Based Compensation (Stock Options) (Details) - Stock Options [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expiration period (in years) | 10 years | ||
Vesting period (in years) | 4 years | ||
Total intrinsic value of stock options exercised | $ 3.5 | $ 5 | $ 51.2 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 20,994 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 56.43 | ||
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 1 year 9 months 3 days |
Acquisitions (Details)
Acquisitions (Details) $ in Millions | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2022 store | Dec. 31, 2023 store | Dec. 31, 2021 USD ($) store | |
Series of Individually Immaterial Business Acquisitions | |||
Business Acquisition, Pro Forma Information [Abstract] | |||
Amount of revenue included in our Consolidated Statement of Income | $ 176.9 | ||
Amount of earnings included in our Consolidated Statement of Income | 6.9 | ||
Pro-forma revenue | 26,544.2 | ||
Pro-forma net income from continuing operations | $ 1,407 | ||
Dealerships [Member] | |||
Acquisitions [Line Items] | |||
Number of stores purchased | store | 4 | 7 | 20 |
Collision Center [Member] | |||
Acquisitions [Line Items] | |||
Number of stores purchased | store | 4 |
Divestitures (Details)
Divestitures (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) store | Dec. 31, 2022 USD ($) store franchises | Dec. 31, 2021 USD ($) store | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of Franchises Terminated | franchises | 2 | ||
Gain on disposal | $ | $ 6.1 | $ 16 | $ 13.3 |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net |
Dealerships Divested | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of businesses divested | 1 | 3 | 3 |
Collision Centers Divested [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Number of businesses divested | 18 |
Cash Flow Information (Details)
Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Supplemental Cash Flow Information [Abstract] | ||||
Cash and cash equivalents | $ 60.8 | $ 72.6 | ||
Restricted cash included in Current Assets | 14.3 | 15.6 | ||
Restricted Cash, Noncurrent | 1.9 | 7.2 | ||
Total cash, cash equivalents, and restricted cash | 77 | 95.4 | $ 60.6 | $ 569.7 |
Accrued purchases of property and equipment | 38.7 | 33 | 25.9 | |
Interest payments, net of amounts capitalized and including interest on vehicle inventory financing | 310.3 | 153.7 | 113.9 | |
Income tax payments, net of income tax refunds | $ 300.8 | $ 482.5 | $ 458.3 |
Financial Instruments and Fai_3
Financial Instruments and Fair Value Measurements (Summary of Carrying Values and Fair Values of Fixed Rate Debt) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity security with readily determinable fair value | $ 22.8 | $ 15.4 |
Equity security without a readily determinable fair value | 56.7 | 56.7 |
Net gains recognized during the period on equity securities | 5.2 | 2.9 |
Less: Net gains recognized during the period on equity securities | 0 | 0 |
Unrealized gains (losses) recognized during the reporting period on equity securities still held at the reporting date | 5.2 | 2.9 |
Nonrecurring [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Equity Securities without readily determinable fair value, cumulative upward adjustment | 3.4 | |
Fixed Rate Debt [Member] | Carrying Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed rate long-term debt | 3,228.1 | 3,224 |
Fixed Rate Debt [Member] | Fair Value [Member] | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Fixed rate long-term debt | $ 2,979.3 | $ 2,803.6 |
Financial Instruments And Fai_4
Financial Instruments And Fair Value Measurements (Nonfinancial Assets Measured on a Nonrecurring Basis) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment, Long-Lived Asset, Held-for-Use, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net | Other Operating Income (Expense), Net |
Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Impairment, Intangible Asset, Finite-Lived, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other Operating Income (Expense), Net | ||
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Finite-Lived Intangible Assets, Fair Value Disclosure | $ 0 | $ 0 | |
Continuing Operations [Member] | Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain/(Loss) on assets long-lived assets held and used | (2.9) | (1.6) | |
Impairment of finite lived intangible assets | (2.3) | 0 | |
Continuing Operations [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Long-lived assets held and used | $ 0 | $ 0 |
Financial Instruments and Fai_5
Financial Instruments and Fair Value Measurements (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Continuing Operations [Member] | Nonrecurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impairment of finite lived intangible assets | $ 2.3 | $ 0 |
Impairment of assets held and used | 2.9 | 1.6 |
Reported Value Measurement [Member] | Continuing Operations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale | 21.3 | 5.7 |
Reported Value Measurement [Member] | Discontinued Operations [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets held for sale in discontinued operations | $ 0 | $ 1.1 |
Commitments and Contingencies (
Commitments and Contingencies (Details) $ in Millions | Dec. 31, 2023 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantor obligations, maximum exposure | $ 5 |
Total surety bonds, letters of credit, and cash deposits | 142.2 |
Letters of credit, amount outstanding | $ 0.8 |
Business and Credit Concentra_2
Business and Credit Concentrations (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | ||
Percentage Revenue from stores located in Florida, Texas, California | 63% | |
Manufacturer receivables | $ 240.5 | $ 174.4 |
Percentage of new vehicle sales from core brands (percent) | 88% |
Segment Information (Details)
Segment Information (Details) $ in Millions | 12 Months Ended | |||
Dec. 31, 2023 USD ($) segments | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | ||
Segment Reporting Information [Line Items] | ||||
Number of reportable segments | segments | 3 | |||
Revenues | $ 26,948.9 | $ 26,985 | $ 25,844 | |
Floorplan interest expense | 144.7 | 41.4 | 25.7 | |
Depreciation and amortization | 220.5 | 200.3 | 193.3 | |
Segment assets | 11,980 | 10,059.7 | 8,943.6 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Segment income (loss) | 1,507.2 | 1,983.1 | 1,877.1 | |
Segment, Expenditure, Addition to Long-Lived Assets | [1] | 416 | 336.2 | 231.9 |
Other interest expense | (181.4) | (134.9) | (93) | |
Other income, net | 24.4 | (14.7) | 24.3 | |
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES | 1,350.2 | 1,833.5 | 1,808.4 | |
AN Reportable Segments [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 25,720.5 | 25,955.9 | 24,988.3 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Segment income (loss) | 1,886.9 | 2,268.6 | 2,147.9 | |
AN Reportable Segment, Domestic [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,573.2 | 7,987.5 | 7,959.9 | |
Floorplan interest expense | 57.3 | 14.4 | 7.9 | |
Depreciation and amortization | 43.6 | 39.1 | 39.3 | |
Segment assets | 2,507.7 | 1,974.3 | 1,758.5 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Segment income (loss) | 415.4 | 565.3 | 595.8 | |
Segment, Expenditure, Addition to Long-Lived Assets | [1] | 102 | 32.8 | 15.5 |
AN Reportable Segment, Import [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 7,880.9 | 7,690.3 | 7,798.5 | |
Floorplan interest expense | 21.5 | 4.8 | 5.1 | |
Depreciation and amortization | 39.2 | 35.6 | 33.9 | |
Segment assets | 2,034.6 | 1,555.6 | 1,424.2 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Segment income (loss) | 635 | 734.2 | 714.7 | |
Segment, Expenditure, Addition to Long-Lived Assets | [1] | 106.6 | 70.1 | 27.1 |
AN Reportable Segment, Premium Luxury [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 10,266.4 | 10,278.1 | 9,229.9 | |
Floorplan interest expense | 53.9 | 15 | 8.8 | |
Depreciation and amortization | 76.9 | 74.9 | 64.8 | |
Segment assets | 3,506.8 | 2,996.8 | 2,668.6 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Segment income (loss) | 836.5 | 969.1 | 837.4 | |
Segment, Expenditure, Addition to Long-Lived Assets | [1] | 69.4 | 126.5 | 80 |
Corporate and Other [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | [2] | 1,228.4 | 1,029.1 | 855.7 |
Floorplan interest expense | 12 | 7.2 | 3.9 | |
Depreciation and amortization | 60.8 | 50.7 | 55.3 | |
Segment assets | 3,930.9 | 3,533 | 3,092.3 | |
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract] | ||||
Segment income (loss) | (379.7) | (285.5) | (270.8) | |
Segment, Expenditure, Addition to Long-Lived Assets | [1] | $ 138 | $ 106.8 | $ 109.3 |
[1] (2) Includes accrued construction in progress and excludes property associated with leases entered during the year. (1) “Corporate and other” is comprised of our other businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, auction operations, and AutoNation Mobile Service. |
Multiemployer Pension Plans (De
Multiemployer Pension Plans (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 USD ($) agreements store | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Multiemployer Plans [Line Items] | |||
Contributions of AutoNation, insignificant plans | $ 0.1 | $ 0.1 | $ 0.1 |
Total Contributions | 1.5 | 1.6 | 1.5 |
Automotive Industries Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Contributions of AutoNation, significant plans | $ 1.2 | 1.3 | 1.2 |
Surcharge imposed | Yes | ||
Surcharges paid | $ 0.6 | $ 0.6 | 0.5 |
Pension protection act zone status | Red | Red | |
Number of collective-bargaining arrangements that require contributions to the Plan | agreements | 3 | ||
Potential withdrawal obligation | $ 14 | ||
IAM National Pension Plan [Member] | |||
Multiemployer Plans [Line Items] | |||
Contributions of AutoNation, significant plans | $ 0.2 | $ 0.2 | $ 0.2 |
Surcharge imposed | Yes | ||
Pension protection act zone status | Red | Red | |
Number of collective-bargaining arrangements that require contributions to the Plan | agreements | 2 | ||
Potential withdrawal obligation | $ 4 | ||
Dealerships [Member] | |||
Multiemployer Plans [Line Items] | |||
Number of stores | store | 252 | ||
Dealerships [Member] | Multiemployer Plans, Pension [Member] | |||
Multiemployer Plans [Line Items] | |||
Number of stores | store | 5 |