Company Quick10K Filing
AutoNation
Price51.06 EPS3
Shares90 P/E16
MCap4,616 P/FCF7
Net Debt1,935 EBIT438
TEV6,551 TEV/EBIT15
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-03-31 Filed 2020-05-11
10-K 2019-12-31 Filed 2020-02-18
10-Q 2019-09-30 Filed 2019-10-30
10-Q 2019-06-30 Filed 2019-07-23
10-Q 2019-03-31 Filed 2019-04-26
10-K 2018-12-31 Filed 2019-02-22
10-Q 2018-09-30 Filed 2018-10-30
10-Q 2018-06-30 Filed 2018-08-01
10-Q 2018-03-31 Filed 2018-05-01
10-K 2017-12-31 Filed 2018-02-15
10-Q 2017-09-30 Filed 2017-11-02
10-Q 2017-06-30 Filed 2017-08-02
10-Q 2017-03-31 Filed 2017-04-25
10-K 2016-12-31 Filed 2017-02-09
10-Q 2016-09-30 Filed 2016-10-28
10-Q 2016-06-30 Filed 2016-07-29
10-Q 2016-03-31 Filed 2016-04-22
10-K 2015-12-31 Filed 2016-02-11
10-Q 2015-09-30 Filed 2015-10-28
10-Q 2015-06-30 Filed 2015-07-22
10-Q 2015-03-31 Filed 2015-04-22
10-K 2014-12-31 Filed 2015-02-11
10-Q 2014-09-30 Filed 2014-10-28
10-Q 2014-06-30 Filed 2014-07-17
10-Q 2014-03-31 Filed 2014-04-18
10-K 2013-12-31 Filed 2014-02-13
10-Q 2013-09-30 Filed 2013-10-24
10-Q 2013-06-30 Filed 2013-07-18
10-Q 2013-03-31 Filed 2013-04-19
10-Q 2012-09-30 Filed 2012-10-25
10-Q 2012-06-30 Filed 2012-07-19
10-Q 2012-03-31 Filed 2012-04-25
10-K 2011-12-31 Filed 2012-02-13
10-Q 2011-09-30 Filed 2011-10-21
10-Q 2011-06-30 Filed 2011-07-27
10-Q 2011-03-31 Filed 2011-04-26
10-K 2010-12-31 Filed 2011-02-15
10-Q 2010-09-30 Filed 2010-10-28
10-Q 2010-06-30 Filed 2010-07-22
10-Q 2010-03-31 Filed 2010-04-23
10-K 2009-12-31 Filed 2010-02-17
8-K 2020-05-19
8-K 2020-05-11
8-K 2020-04-21
8-K 2020-04-12
8-K 2020-04-02
8-K 2020-03-26
8-K 2020-03-02
8-K 2020-02-11
8-K 2020-02-03
8-K 2019-11-18
8-K 2019-10-29
8-K 2019-08-21
8-K 2019-07-22
8-K 2019-07-22
8-K 2019-04-26
8-K 2019-04-18
8-K 2019-02-15
8-K 2019-01-17
8-K 2019-01-03
8-K 2018-12-14
8-K 2018-10-30
8-K 2018-09-17
8-K 2018-08-01
8-K 2018-05-01
8-K 2018-04-19
8-K 2018-02-01
8-K 2018-01-16

AN 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1A. Risk Factors
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
Item 6. Exhibits
EX-31.1 an10q33120ex311.htm
EX-31.2 an10q33120ex312.htm
EX-32.1 an10q33120ex321.htm
EX-32.2 an10q33120ex322.htm

AutoNation Earnings 2020-03-31

Balance SheetIncome StatementCash Flow
151296302012201420172020
Assets, Equity
10.08.06.04.02.00.02012201420172020
Rev, G Profit, Net Income
0.30.20.0-0.1-0.3-0.42012201420172020
Ops, Inv, Fin

Document
0.001250.0620.0140.0840.1210.1210.0280.0860.1430.0420.0060.0770.1110.020P5Yfalse--12-31Q120200000350698AUTONATION, INC.150000000015000000000.010.0115000000001500000000102562149102562149147000000014000000030.010.015000000500000000P1YP2YP2Y1321297415352097Represents revenue recognized during the period for automotive repair and maintenance services.Earnings per share amounts are calculated discretely and therefore may not add up to the total due to rounding.Corporate and other is comprised of our other businesses, including collision centers, auction operations, AutoNation USA stand-alone used vehicle sales and service centers, and parts distribution centers.Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense. 0000350698 2020-01-01 2020-03-31 0000350698 2020-05-08 0000350698 2019-12-31 0000350698 2020-03-31 0000350698 an:NonTradeMember 2019-12-31 0000350698 an:NonTradeMember 2020-03-31 0000350698 an:TradeMember 2019-12-31 0000350698 an:TradeMember 2020-03-31 0000350698 2019-01-01 2019-03-31 0000350698 an:UsedVehicleMember 2019-01-01 2019-03-31 0000350698 an:NewVehicleMember 2019-01-01 2019-03-31 0000350698 an:FinanceAndInsuranceNetMember 2020-01-01 2020-03-31 0000350698 an:PartsAndServiceMember 2019-01-01 2019-03-31 0000350698 an:NewVehicleMember 2020-01-01 2020-03-31 0000350698 us-gaap:ProductAndServiceOtherMember 2020-01-01 2020-03-31 0000350698 an:UsedVehicleMember 2020-01-01 2020-03-31 0000350698 an:PartsAndServiceMember 2020-01-01 2020-03-31 0000350698 2019-03-31 0000350698 an:FinanceAndInsuranceNetMember 2019-01-01 2019-03-31 0000350698 us-gaap:ProductAndServiceOtherMember 2019-01-01 2019-03-31 0000350698 us-gaap:TreasuryStockMember 2019-12-31 0000350698 us-gaap:CommonStockMember 2019-12-31 0000350698 us-gaap:RetainedEarningsMember 2019-12-31 0000350698 us-gaap:AdditionalPaidInCapitalMember 2020-01-01 2020-03-31 0000350698 us-gaap:TreasuryStockMember 2020-01-01 2020-03-31 0000350698 us-gaap:RetainedEarningsMember 2020-01-01 2020-03-31 0000350698 2020-01-01 0000350698 us-gaap:CommonStockMember 2020-03-31 0000350698 us-gaap:AdditionalPaidInCapitalMember 2019-12-31 0000350698 us-gaap:RetainedEarningsMember 2020-03-31 0000350698 us-gaap:AdditionalPaidInCapitalMember 2020-03-31 0000350698 us-gaap:TreasuryStockMember 2020-03-31 0000350698 us-gaap:RetainedEarningsMember 2020-01-01 0000350698 us-gaap:AdditionalPaidInCapitalMember 2019-01-01 2019-03-31 0000350698 us-gaap:AdditionalPaidInCapitalMember 2018-12-31 0000350698 us-gaap:TreasuryStockMember 2019-03-31 0000350698 us-gaap:RetainedEarningsMember 2019-01-01 2019-03-31 0000350698 us-gaap:CommonStockMember 2019-03-31 0000350698 us-gaap:CommonStockMember 2018-12-31 0000350698 us-gaap:TreasuryStockMember 2019-01-01 2019-03-31 0000350698 us-gaap:RetainedEarningsMember 2018-12-31 0000350698 us-gaap:TreasuryStockMember 2018-12-31 0000350698 us-gaap:RetainedEarningsMember 2019-03-31 0000350698 2018-12-31 0000350698 us-gaap:AdditionalPaidInCapitalMember 2019-03-31 0000350698 an:DealershipsMember 2020-03-31 0000350698 an:AutoNationUSAStoresMember 2020-03-31 0000350698 an:PartsDistributionCenterMember 2020-03-31 0000350698 an:AutomotiveAuctionOperationsMember 2020-03-31 0000350698 an:CollisionCenterMember 2020-03-31 0000350698 us-gaap:CorporateAndOtherMember us-gaap:TransferredOverTimeMember 2020-01-01 2020-03-31 0000350698 an:FinanceAndInsuranceNetMember an:ANReportableSegmentImportMember 2020-01-01 2020-03-31 0000350698 us-gaap:CorporateAndOtherMember 2020-01-01 2020-03-31 0000350698 us-gaap:ProductAndServiceOtherMember us-gaap:CorporateAndOtherMember 2020-01-01 2020-03-31 0000350698 an:PartsAndServiceMember an:ANReportableSegmentDomesticMember 2020-01-01 2020-03-31 0000350698 an:ANReportableSegmentImportMember us-gaap:TransferredAtPointInTimeMember 2020-01-01 2020-03-31 0000350698 an:ANReportableSegmentDomesticMember us-gaap:TransferredOverTimeMember 2020-01-01 2020-03-31 0000350698 an:UsedVehicleMember an:ANReportableSegmentImportMember 2020-01-01 2020-03-31 0000350698 an:UsedVehicleMember an:ANReportableSegmentPremiumLuxuryMember 2020-01-01 2020-03-31 0000350698 an:UsedVehicleMember an:ANReportableSegmentDomesticMember 2020-01-01 2020-03-31 0000350698 an:ANReportableSegmentPremiumLuxuryMember 2020-01-01 2020-03-31 0000350698 us-gaap:CorporateAndOtherMember us-gaap:TransferredAtPointInTimeMember 2020-01-01 2020-03-31 0000350698 an:ANReportableSegmentImportMember 2020-01-01 2020-03-31 0000350698 an:NewVehicleMember an:ANReportableSegmentPremiumLuxuryMember 2020-01-01 2020-03-31 0000350698 an:ANReportableSegmentDomesticMember 2020-01-01 2020-03-31 0000350698 an:ANReportableSegmentPremiumLuxuryMember us-gaap:TransferredAtPointInTimeMember 2020-01-01 2020-03-31 0000350698 an:PartsAndServiceMember us-gaap:CorporateAndOtherMember 2020-01-01 2020-03-31 0000350698 an:ANReportableSegmentDomesticMember us-gaap:TransferredAtPointInTimeMember 2020-01-01 2020-03-31 0000350698 an:PartsAndServiceMember an:ANReportableSegmentPremiumLuxuryMember 2020-01-01 2020-03-31 0000350698 an:FinanceAndInsuranceNetMember an:ANReportableSegmentDomesticMember 2020-01-01 2020-03-31 0000350698 an:ANReportableSegmentPremiumLuxuryMember us-gaap:TransferredOverTimeMember 2020-01-01 2020-03-31 0000350698 an:NewVehicleMember us-gaap:CorporateAndOtherMember 2020-01-01 2020-03-31 0000350698 us-gaap:ProductAndServiceOtherMember an:ANReportableSegmentDomesticMember 2020-01-01 2020-03-31 0000350698 us-gaap:ProductAndServiceOtherMember an:ANReportableSegmentPremiumLuxuryMember 2020-01-01 2020-03-31 0000350698 an:FinanceAndInsuranceNetMember an:ANReportableSegmentPremiumLuxuryMember 2020-01-01 2020-03-31 0000350698 an:NewVehicleMember an:ANReportableSegmentImportMember 2020-01-01 2020-03-31 0000350698 an:ANReportableSegmentImportMember us-gaap:TransferredOverTimeMember 2020-01-01 2020-03-31 0000350698 us-gaap:TransferredOverTimeMember 2020-01-01 2020-03-31 0000350698 us-gaap:TransferredAtPointInTimeMember 2020-01-01 2020-03-31 0000350698 an:UsedVehicleMember us-gaap:CorporateAndOtherMember 2020-01-01 2020-03-31 0000350698 an:FinanceAndInsuranceNetMember us-gaap:CorporateAndOtherMember 2020-01-01 2020-03-31 0000350698 an:NewVehicleMember an:ANReportableSegmentDomesticMember 2020-01-01 2020-03-31 0000350698 an:PartsAndServiceMember an:ANReportableSegmentImportMember 2020-01-01 2020-03-31 0000350698 us-gaap:ProductAndServiceOtherMember an:ANReportableSegmentImportMember 2020-01-01 2020-03-31 0000350698 us-gaap:CorporateAndOtherMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-03-31 0000350698 an:NewVehicleMember an:ANReportableSegmentPremiumLuxuryMember 2019-01-01 2019-03-31 0000350698 an:UsedVehicleMember an:ANReportableSegmentPremiumLuxuryMember 2019-01-01 2019-03-31 0000350698 an:UsedVehicleMember an:ANReportableSegmentImportMember 2019-01-01 2019-03-31 0000350698 an:ANReportableSegmentDomesticMember 2019-01-01 2019-03-31 0000350698 us-gaap:ProductAndServiceOtherMember an:ANReportableSegmentImportMember 2019-01-01 2019-03-31 0000350698 an:PartsAndServiceMember an:ANReportableSegmentPremiumLuxuryMember 2019-01-01 2019-03-31 0000350698 an:ANReportableSegmentPremiumLuxuryMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-03-31 0000350698 us-gaap:CorporateAndOtherMember 2019-01-01 2019-03-31 0000350698 an:PartsAndServiceMember an:ANReportableSegmentDomesticMember 2019-01-01 2019-03-31 0000350698 an:PartsAndServiceMember an:ANReportableSegmentImportMember 2019-01-01 2019-03-31 0000350698 an:NewVehicleMember us-gaap:CorporateAndOtherMember 2019-01-01 2019-03-31 0000350698 an:NewVehicleMember an:ANReportableSegmentImportMember 2019-01-01 2019-03-31 0000350698 us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-03-31 0000350698 us-gaap:ProductAndServiceOtherMember an:ANReportableSegmentPremiumLuxuryMember 2019-01-01 2019-03-31 0000350698 an:ANReportableSegmentPremiumLuxuryMember 2019-01-01 2019-03-31 0000350698 an:FinanceAndInsuranceNetMember an:ANReportableSegmentPremiumLuxuryMember 2019-01-01 2019-03-31 0000350698 an:ANReportableSegmentPremiumLuxuryMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-03-31 0000350698 us-gaap:ProductAndServiceOtherMember an:ANReportableSegmentDomesticMember 2019-01-01 2019-03-31 0000350698 an:FinanceAndInsuranceNetMember us-gaap:CorporateAndOtherMember 2019-01-01 2019-03-31 0000350698 an:ANReportableSegmentDomesticMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-03-31 0000350698 an:ANReportableSegmentImportMember 2019-01-01 2019-03-31 0000350698 us-gaap:TransferredOverTimeMember 2019-01-01 2019-03-31 0000350698 an:ANReportableSegmentImportMember us-gaap:TransferredOverTimeMember 2019-01-01 2019-03-31 0000350698 an:FinanceAndInsuranceNetMember an:ANReportableSegmentDomesticMember 2019-01-01 2019-03-31 0000350698 an:UsedVehicleMember us-gaap:CorporateAndOtherMember 2019-01-01 2019-03-31 0000350698 an:FinanceAndInsuranceNetMember an:ANReportableSegmentImportMember 2019-01-01 2019-03-31 0000350698 an:UsedVehicleMember an:ANReportableSegmentDomesticMember 2019-01-01 2019-03-31 0000350698 us-gaap:ProductAndServiceOtherMember us-gaap:CorporateAndOtherMember 2019-01-01 2019-03-31 0000350698 an:ANReportableSegmentDomesticMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-03-31 0000350698 an:NewVehicleMember an:ANReportableSegmentDomesticMember 2019-01-01 2019-03-31 0000350698 us-gaap:CorporateAndOtherMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-03-31 0000350698 an:ANReportableSegmentImportMember us-gaap:TransferredAtPointInTimeMember 2019-01-01 2019-03-31 0000350698 an:PartsAndServiceMember us-gaap:CorporateAndOtherMember 2019-01-01 2019-03-31 0000350698 2023-04-01 2020-03-31 0000350698 2020-04-01 2020-03-31 0000350698 2021-04-01 2020-03-31 0000350698 an:PartsAndServiceMember 2019-12-31 0000350698 an:NewVehicleMember 2020-03-31 0000350698 an:UsedVehicleMember 2020-03-31 0000350698 an:NewVehicleMember 2019-12-31 0000350698 an:UsedVehicleMember 2019-12-31 0000350698 an:PartsAndServiceMember 2020-03-31 0000350698 an:NewVehicleFloorplanFacilitiesMember 2020-03-31 0000350698 an:UsedVehicleFloorplanFacilitiesMember 2019-01-01 2019-03-31 0000350698 an:UsedVehicleFloorplanFacilitiesMember 2020-01-01 2020-03-31 0000350698 an:NewVehicleFloorplanFacilitiesMember 2020-01-01 2020-03-31 0000350698 an:NewVehicleFloorplanFacilitiesMember 2019-01-01 2019-03-31 0000350698 an:UsedVehicleFloorplanFacilitiesMember 2020-03-31 0000350698 an:ReportingUnitDomesticMember 2019-12-31 0000350698 an:ReportingUnitPartsCentersMember 2020-01-01 2020-03-31 0000350698 an:ReportingUnitPremiumLuxuryMember 2020-03-31 0000350698 an:ReportingUnitPremiumLuxuryMember 2020-01-01 2020-03-31 0000350698 us-gaap:FairValueMeasurementsNonrecurringMember 2020-01-01 2020-03-31 0000350698 an:ReportingUnitCollisionCentersMember 2020-03-31 0000350698 an:ReportingUnitPartsCentersMember 2020-03-31 0000350698 an:ReportingUnitCollisionCentersMember 2020-01-01 2020-03-31 0000350698 us-gaap:FranchiseRightsMember 2020-01-01 2020-03-31 0000350698 an:ReportingUnitCollisionCentersMember 2019-12-31 0000350698 an:ReportingUnitImportMember 2019-12-31 0000350698 an:ReportingUnitPremiumLuxuryMember 2019-12-31 0000350698 an:ReportingUnitDomesticMember 2020-03-31 0000350698 an:ReportingUnitImportMember 2020-01-01 2020-03-31 0000350698 an:ReportingUnitDomesticMember 2020-01-01 2020-03-31 0000350698 an:ReportingUnitImportMember 2020-03-31 0000350698 an:ReportingUnitPartsCentersMember 2019-12-31 0000350698 an:RevolvingCreditFacilityDue2025Member 2020-03-31 0000350698 srt:MaximumMember an:RevolvingCreditFacilityDue2025Member us-gaap:LineOfCreditMember us-gaap:BaseRateMember 2020-01-01 2020-03-31 0000350698 an:RevolvingCreditFacilityDue2025Member us-gaap:LineOfCreditMember 2020-01-01 2020-03-31 0000350698 srt:MinimumMember an:RevolvingCreditFacilityDue2025Member 2020-01-01 2020-03-31 0000350698 an:SeniorNotesatThreePointFivePercentDue2024Member us-gaap:SeniorNotesMember 2020-03-31 0000350698 srt:WeightedAverageMember us-gaap:CommercialPaperMember 2019-01-01 2019-03-31 0000350698 an:SeniorNotesatFourPointFivePercentDue2025Member us-gaap:SeniorNotesMember 2020-03-31 0000350698 us-gaap:CommercialPaperMember 2019-12-31 0000350698 us-gaap:CommercialPaperMember 2020-03-31 0000350698 an:SeniorNotesatFivePointFivePercentDue2020Member us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000350698 srt:MaximumMember an:RevolvingCreditFacilityDue2025Member us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-03-31 0000350698 srt:MaximumMember an:RevolvingCreditFacilityDue2025Member 2020-01-01 2020-03-31 0000350698 an:OtherDebtMember 2020-03-31 0000350698 srt:MinimumMember an:RevolvingCreditFacilityDue2025Member us-gaap:LineOfCreditMember us-gaap:BaseRateMember 2020-01-01 2020-03-31 0000350698 an:SeniorNotesatThreePointEightPercentDue2027Member us-gaap:SeniorNotesMember 2020-03-31 0000350698 an:SeniorNotesatThreePointThreeFivePercentDue2021Member us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000350698 srt:WeightedAverageMember us-gaap:CommercialPaperMember 2020-01-01 2020-03-31 0000350698 srt:MinimumMember an:RevolvingCreditFacilityDue2025Member us-gaap:LineOfCreditMember us-gaap:LondonInterbankOfferedRateLIBORMember 2020-01-01 2020-03-31 0000350698 srt:MaximumMember us-gaap:CommercialPaperMember 2020-01-01 2020-03-31 0000350698 an:SeniorNotesatThreePointThreeFivePercentDue2021Member us-gaap:SeniorNotesMember 2020-03-31 0000350698 an:SeniorNotesatFivePointFivePercentDue2020Member us-gaap:SeniorNotesMember 2020-03-31 0000350698 an:SeniorNotesatThreePointThreeFivePercentDue2021Member us-gaap:SeniorNotesMember 2019-12-31 0000350698 an:SeniorNotesatThreePointFivePercentDue2024Member us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000350698 an:RevolvingCreditFacilityDue2025Member 2019-12-31 0000350698 an:SeniorNotesatFourPointFivePercentDue2025Member us-gaap:SeniorNotesMember 2019-12-31 0000350698 an:SeniorNotesatThreePointEightPercentDue2027Member us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000350698 an:OtherDebtMember 2019-12-31 0000350698 an:SeniorNotesatFourPointFivePercentDue2025Member us-gaap:SeniorNotesMember 2020-01-01 2020-03-31 0000350698 an:SeniorNotesatThreePointEightPercentDue2027Member us-gaap:SeniorNotesMember 2019-12-31 0000350698 an:SeniorNotesatThreePointFivePercentDue2024Member us-gaap:SeniorNotesMember 2019-12-31 0000350698 an:SeniorNotesatFivePointFivePercentDue2020Member us-gaap:SeniorNotesMember 2019-12-31 0000350698 us-gaap:RestrictedStockUnitsRSUMember 2019-01-01 2019-03-31 0000350698 an:RestrictedStockAndRestrictedStockUnitsMember 2020-01-01 2020-03-31 0000350698 an:RestrictedStockAndRestrictedStockUnitsMember 2019-01-01 2019-03-31 0000350698 us-gaap:RestrictedStockUnitsRSUMember 2020-01-01 2020-03-31 0000350698 an:StockRepurchaseProgramBoardAuthorizedRepurchasesMember 2020-01-01 2020-03-31 0000350698 an:StockRepurchaseProgramBoardAuthorizedRepurchasesMember 2019-01-01 2019-03-31 0000350698 an:StockRepurchaseProgramBoardAuthorizedRepurchasesMember 2020-03-31 0000350698 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:OtherIntangibleAssetsMember 2020-01-01 2020-03-31 0000350698 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SegmentContinuingOperationsMember 2020-03-31 0000350698 us-gaap:FairValueMeasurementsNonrecurringMember 2019-01-01 2019-03-31 0000350698 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SegmentDiscontinuedOperationsMember 2019-12-31 0000350698 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SegmentDiscontinuedOperationsMember 2020-03-31 0000350698 us-gaap:CarryingReportedAmountFairValueDisclosureMember us-gaap:SegmentContinuingOperationsMember 2019-12-31 0000350698 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2019-03-31 0000350698 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember 2020-03-31 0000350698 an:FixedRateDebtMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2020-03-31 0000350698 an:FixedRateDebtMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2019-12-31 0000350698 an:FixedRateDebtMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2020-03-31 0000350698 an:FixedRateDebtMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2019-12-31 0000350698 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember us-gaap:MeasurementInputLongTermRevenueGrowthRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:MinimumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember an:MeasurementInputContributoryAssetChargesMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:MinimumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember an:MeasurementInputLongtermPretaxIncomeMarginMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:MinimumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember an:MeasurementInputWeightedAverageCostofCapitalMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember an:MeasurementInputLongtermPretaxIncomeMarginMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:ArithmeticAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember an:MeasurementInputLongtermPretaxIncomeMarginMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:ArithmeticAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember an:MeasurementInputWeightedAverageCostofCapitalMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:ArithmeticAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember an:MeasurementInputContributoryAssetChargesMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:MinimumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember an:MeasurementInputContributoryAssetChargesMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:ArithmeticAverageMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember us-gaap:MeasurementInputDiscountRateMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 0000350698 srt:MaximumMember us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsNonrecurringMember us-gaap:FranchiseRightsMember an:MeasurementInputWeightedAverageCostofCapitalMember us-gaap:ValuationTechniqueDiscountedCashFlowMember 2020-03-31 an:brand an:segments xbrli:shares iso4217:USD xbrli:shares an:store an:franchises xbrli:pure iso4217:USD

 
 
 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2020
or
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number: 1-13107
AutoNation, Inc.
(Exact name of registrant as specified in its charter)
 
Delaware
 
73-1105145
(State or other jurisdiction of incorporation or organization)
 
(I.R.S. Employer Identification No.)
 
 
 
 
200 SW 1st Avenue
 
 
Fort Lauderdale
,
Florida
 
33301
(Address of principal executive offices)
 
(Zip Code)
(954)769-6000
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Securities registered pursuant to Section 12(b) of the Act:
Title of each class
 
Trading Symbol(s)
 
Name of each exchange on which registered
Common stock, par value $0.01 per share
 
AN
 
New York Stock Exchange
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes   þ   No   ¨
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes   þ   No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer
þ
  
Accelerated filer 
Non-accelerated filer
  
Smaller reporting company  
 
 
 
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes    No  þ
As of May 8, 2020, the registrant had 87,215,132 shares of common stock outstanding.
 
 
 
 
 



AUTONATION, INC.
FORM 10-Q
TABLE OF CONTENTS
 
 
 
Page
Item 1.
 
 
 
 
 
 
Item 2.
Item 3.
Item 4.
Item 1A.
Item 2.
Item 6.




PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED BALANCE SHEETS
(In millions, except share and per share data)
 
 
March 31,
2020
 
December 31,
2019
ASSETS
 
 
 
CURRENT ASSETS:
 
 
 
Cash and cash equivalents
$
411.0

 
$
42.0

Receivables, net
512.9

 
916.7

Inventory
3,677.0

 
3,305.8

Other current assets
147.7

 
146.6

Total Current Assets
4,748.6

 
4,411.1

PROPERTY AND EQUIPMENT, net of accumulated depreciation of $1.5 billion and $1.5 billion, respectively
3,164.9

 
3,174.6

OPERATING LEASE ASSETS
333.5

 
333.1

GOODWILL
1,183.6

 
1,501.9

OTHER INTANGIBLE ASSETS, NET
522.3

 
581.6

OTHER ASSETS
599.5

 
541.0

Total Assets
$
10,552.4

 
$
10,543.3

LIABILITIES AND SHAREHOLDERS’ EQUITY
 
 
 
CURRENT LIABILITIES:
 
 
 
Vehicle floorplan payable - trade
$
2,197.2

 
$
2,120.6

Vehicle floorplan payable - non-trade
1,485.3

 
1,455.2

Accounts payable
225.5

 
290.3

Commercial paper
140.0

 
170.0

Current maturities of long-term debt
305.6

 
355.6

Other current liabilities
642.2

 
708.5

Total Current Liabilities
4,995.8

 
5,100.2

LONG-TERM DEBT, NET OF CURRENT MATURITIES
2,076.4

 
1,578.5

NONCURRENT OPERATING LEASE LIABILITIES
306.7

 
305.0

DEFERRED INCOME TAXES
66.5

 
135.1

OTHER LIABILITIES
260.1

 
262.4

COMMITMENTS AND CONTINGENCIES (Note 12)

 

SHAREHOLDERS’ EQUITY:
 
 
 
Preferred stock, par value $0.01 per share; 5,000,000 shares authorized; none issued

 

Common stock, par value $0.01 per share; 1,500,000,000 shares authorized; 102,562,149 shares issued at March 31, 2020, and December 31, 2019, including shares held in treasury
1.0

 
1.0

Additional paid-in capital
18.7

 
35.9

Retained earnings
3,455.5

 
3,688.3

Treasury stock, at cost; 15,352,097 and 13,212,974 shares held, respectively
(628.3
)
 
(563.1
)
Total Shareholders’ Equity
2,846.9

 
3,162.1

Total Liabilities and Shareholders’ Equity
$
10,552.4

 
$
10,543.3


See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.


1


AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(In millions, except per share data)
 
Three Months Ended
 
March 31,
 
2020
 
2019
Revenue:
 
 
 
New vehicle
$
2,281.9

 
$
2,496.7

Used vehicle
1,248.7

 
1,339.6

Parts and service
876.3

 
876.7

Finance and insurance, net
235.8

 
236.5

Other
24.3

 
32.3

TOTAL REVENUE
4,667.0

 
4,981.8

Cost of sales:
 
 
 
New vehicle
2,185.5

 
2,374.8

Used vehicle
1,157.7

 
1,249.1

Parts and service
487.5

 
477.8

Other
23.1

 
30.9

TOTAL COST OF SALES (excluding depreciation shown below)
3,853.8

 
4,132.6

Gross profit:
 
 
 
New vehicle
96.4

 
121.9

Used vehicle
91.0

 
90.5

Parts and service
388.8

 
398.9

Finance and insurance
235.8

 
236.5

Other
1.2

 
1.4

TOTAL GROSS PROFIT
813.2

 
849.2

Selling, general, and administrative expenses
600.7

 
623.0

Depreciation and amortization
48.1

 
44.1

Goodwill impairment
318.3

 

Franchise rights impairment
57.5

 

Other (income) expense, net
7.9

 
(8.7
)
OPERATING INCOME (LOSS)
(219.3
)
 
190.8

Non-operating income (expense) items:
 
 
 
Floorplan interest expense
(25.5
)
 
(39.0
)
Other interest expense
(23.5
)
 
(27.8
)
Interest income
0.1

 
0.2

Other income (loss), net
(3.0
)
 
1.9

INCOME (LOSS) FROM CONTINUING OPERATIONS BEFORE INCOME TAXES
(271.2
)
 
126.1

Income tax provision (benefit)
(39.0
)
 
34.0

NET INCOME (LOSS) FROM CONTINUING OPERATIONS
(232.2
)
 
92.1

Loss from discontinued operations, net of income taxes
(0.1
)
 
(0.1
)
NET INCOME (LOSS)
$
(232.3
)
 
$
92.0

BASIC EARNINGS (LOSS) PER SHARE:
 
 
 
Continuing operations
$
(2.58
)
 
$
1.02

Discontinued operations
$

 
$

Net income (loss)
$
(2.58
)
 
$
1.02

Weighted average common shares outstanding
90.0

 
90.5

DILUTED EARNINGS (LOSS) PER SHARE:
 
 
 
Continuing operations
$
(2.58
)
 
$
1.02

Discontinued operations
$

 
$

Net income (loss)
$
(2.58
)
 
$
1.01

Weighted average common shares outstanding
90.0

 
90.7

COMMON SHARES OUTSTANDING, net of treasury stock, at period end
87.2

 
89.2

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.


2


AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
(In millions, except share data)
 
 
Three Months Ended March 31, 2020
 
Common Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Treasury
Stock
 
Total
 
Shares
 
Amount
 
 
 
 
BALANCE AT DECEMBER 31, 2019
102,562,149

 
$
1.0

 
$
35.9

 
$
3,688.3

 
$
(563.1
)
 
$
3,162.1

Net loss

 

 

 
(232.3
)
 

 
(232.3
)
Repurchases of common stock

 

 

 

 
(80.0
)
 
(80.0
)
Stock-based compensation expense

 

 
4.5

 

 

 
4.5

Shares awarded under stock-based compensation plans, net of shares withheld for taxes

 

 
(21.7
)
 

 
14.8

 
(6.9
)
Cumulative effect of change in accounting principle - current expected credit losses

 

 

 
(0.5
)
 

 
(0.5
)
BALANCE AT MARCH 31, 2020
102,562,149

 
$
1.0

 
$
18.7

 
$
3,455.5

 
$
(628.3
)
 
$
2,846.9


 
Three Months Ended March 31, 2019
 
Common Stock
 
Additional
Paid-In
Capital
 
Retained
Earnings
 
Treasury
Stock
 
Total
 
Shares
 
Amount
 
 
 
 
BALANCE AT DECEMBER 31, 2018
102,562,149

 
$
1.0

 
$
20.8

 
$
3,238.3

 
$
(544.1
)
 
$
2,716.0

Net income

 

 

 
92.0

 

 
92.0

Repurchases of common stock

 

 

 

 
(33.5
)
 
(33.5
)
Stock-based compensation expense

 

 
13.7

 

 

 
13.7

Shares awarded under stock-based compensation plans, net of shares withheld for taxes

 

 
(9.8
)
 

 
7.4

 
(2.4
)
BALANCE AT MARCH 31, 2019
102,562,149

 
$
1.0

 
$
24.7

 
$
3,330.3

 
$
(570.2
)
 
$
2,785.8



See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.



3


AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
 
 
Three Months Ended
 
March 31,
 
2020
 
2019
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
 
 
 
Net income (loss)
$
(232.3
)
 
$
92.0

Adjustments to reconcile net income (loss) to net cash provided by operating activities:
 
 
 
Loss from discontinued operations
0.1

 
0.1

Depreciation and amortization
48.1

 
44.1

Amortization of debt issuance costs and accretion of debt discounts
1.2

 
1.3

Stock-based compensation expense
4.5

 
13.7

Deferred income tax provision (benefit)
(68.6
)
 
0.8

Net gain related to business/property dispositions

 
(8.3
)
Goodwill impairment
318.3

 

Franchise rights impairment
57.5

 

Non-cash impairment charges
8.5

 
0.2

Other
3.6

 
(2.0
)
(Increase) decrease, net of effects from business acquisitions and divestitures:
 
 
 
Receivables
403.4

 
193.3

Inventory
(371.3
)
 
(141.4
)
Other assets
(3.5
)
 
33.2

Increase (decrease), net of effects from business acquisitions and divestitures:
 
 
 
Vehicle floorplan payable - trade, net
76.6

 
65.7

Accounts payable
(64.1
)
 
(35.2
)
Other liabilities
(68.3
)
 
2.2

Net cash provided by continuing operations
113.7

 
259.7

Net cash provided by discontinued operations

 

Net cash provided by operating activities
113.7

 
259.7

CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES:
 
 
 
Purchases of property and equipment
(42.2
)
 
(60.0
)
Insurance recoveries on property and equipment
1.2

 
0.3

Cash received from business divestitures, net of cash relinquished

 
17.4

Cash used in business acquisitions, net of cash acquired
(0.4
)
 
(4.3
)
Investment in equity security
(50.0
)
 

Other
(0.8
)
 
(2.0
)
Net cash used in continuing operations
(92.2
)
 
(48.6
)
Net cash used in discontinued operations

 

Net cash used in investing activities
(92.2
)
 
(48.6
)

See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.


4


AUTONATION, INC.
UNAUDITED CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In millions)
(Continued)
 
 
Three Months Ended
 
March 31,
 
2020
 
2019
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
 
 
 
Repurchases of common stock
(78.9
)
 
(33.4
)
Payment of 5.5% Senior Notes due 2020
(350.0
)
 

Proceeds from revolving credit facility
790.0

 

Net payments of commercial paper
(30.0
)
 
(160.0
)
Payment of debt issuance costs
(6.1
)
 

Net proceeds from (payments of) vehicle floorplan payable - non-trade
30.1

 
(12.5
)
Payments of other debt obligations
(1.1
)
 
(2.6
)
Proceeds from the exercise of stock options
1.0

 
0.3

Payments of tax withholdings for stock-based awards
(7.9
)
 
(2.7
)
Net cash received from (used in) continuing operations
347.1

 
(210.9
)
Net cash used in discontinued operations

 

Net cash received from (used in) financing activities
347.1

 
(210.9
)
INCREASE IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH
368.6

 
0.2

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at beginning of period
42.5

 
49.4

CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at end of period
$
411.1

 
$
49.6


See accompanying Notes to Unaudited Condensed Consolidated Financial Statements.




5


AUTONATION, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(In millions, except per share data)
 
1.
INTERIM FINANCIAL STATEMENTS
Business and Basis of Presentation
AutoNation, Inc., through its subsidiaries, is the largest automotive retailer in the United States. As of March 31, 2020, we owned and operated 317 new vehicle franchises from 231 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores, which we believe include some of the most recognizable and well-known in our key markets, sell 32 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 89% of the new vehicles that we sold during the three months ended March 31, 2020, are manufactured by Toyota (including Lexus), Honda, General Motors, Ford, FCA US, Mercedes-Benz, BMW, and Volkswagen (including Audi and Porsche). As of March 31, 2020, we also owned and operated 81 AutoNation-branded collision centers, 5 AutoNation USA stores, 4 automotive auction operations, and 16 parts distribution centers.
We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service,” which includes automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products, which include vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. 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 dealership operations are conducted by our subsidiaries.
The accompanying Unaudited Condensed Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries; intercompany accounts and transactions have been eliminated. The accompanying Unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and in accordance with the rules and regulations of the Securities and Exchange Commission (“SEC”). Accordingly, they do not include all of the information and notes required by GAAP for complete financial statements. Additionally, operating results for interim periods are not necessarily indicative of the results that can be expected for a full year. The Unaudited Condensed Consolidated Financial Statements herein should be read in conjunction with our audited Consolidated Financial Statements and notes thereto included within our most recent Annual Report on Form 10-K. These Unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all material adjustments (which include only normal recurring adjustments) necessary to fairly state, in all material respects, our financial position and results of operations for the periods presented.
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and 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, long-lived asset, and indefinite-lived intangible asset valuation; inventory valuation; equity investment valuation; assets held for sale; accruals for chargebacks against revenue recognized from the sale of finance and insurance products; accruals related to self-insurance programs; certain legal proceedings; assessment of the annual effective tax rate; valuation of deferred income taxes and income tax contingencies; the allowance for expected credit losses; and measurement of performance-based compensation costs.



6

AUTONATION, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)

2.    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. In the following tables, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. We have determined that these categories depict how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. The tables below also include a reconciliation of the disaggregated revenue to reportable segment revenue.
 
 
Three Months Ended March 31, 2020
 
 
Domestic
 
Import
 
Premium Luxury
 
Corporate and other(1)
 
Total
Major Goods/Service Lines
 
 
 
 
 
 
 
 
 
 
New vehicle
 
$
738.9

 
$
733.9

 
$
809.1

 
$

 
$
2,281.9

Used vehicle
 
404.6

 
334.5

 
467.3

 
42.3

 
1,248.7

Parts and service
 
235.6

 
207.5

 
277.4

 
155.8

 
876.3

Finance and insurance, net
 
83.1

 
84.0

 
63.0

 
5.7

 
235.8

Other
 
21.3

 
2.2

 

 
0.8

 
24.3

 
 
$
1,483.5

 
$
1,362.1

 
$
1,616.8

 
$
204.6

 
$
4,667.0

 
 
 
 
 
 
 
 
 
 
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
 
Goods and services transferred at a point in time
 
$
1,311.4

 
$
1,200.5

 
$
1,380.2

 
$
109.4

 
$
4,001.5

Goods and services transferred over time(2)
 
172.1

 
161.6

 
236.6

 
95.2

 
665.5

 
 
$
1,483.5

 
$
1,362.1

 
$
1,616.8

 
$
204.6

 
$
4,667.0

 
 
 
 
 
 
 
 
 
 
 
 
 
Three Months Ended March 31, 2019
 
 
Domestic
 
Import
 
Premium Luxury
 
Corporate and other(1)
 
Total
Major Goods/Service Lines
 
 
 
 
 
 
 
 
 
 
New vehicle
 
$
781.0

 
$
820.2

 
$
895.5

 
$

 
$
2,496.7

Used vehicle
 
443.4

 
369.5

 
496.7

 
30.0

 
1,339.6

Parts and service
 
236.3

 
220.2

 
278.2

 
142.0

 
876.7

Finance and insurance, net
 
80.4

 
84.5

 
61.6

 
10.0

 
236.5

Other
 
27.7

 
1.7

 
2.1

 
0.8

 
32.3

 
 
$
1,568.8

 
$
1,496.1

 
$
1,734.1

 
$
182.8

 
$
4,981.8

 
 
 
 
 
 
 
 
 
 
 
Timing of Revenue Recognition
 
 
 
 
 
 
 
 
 
 
Goods and services transferred at a point in time
 
$
1,398.1

 
$
1,324.8

 
$
1,497.2

 
$
92.7

 
$
4,312.8

Goods and services transferred over time(2)
 
170.7

 
171.3

 
236.9

 
90.1

 
669.0

 
 
$
1,568.8

 
$
1,496.1

 
$
1,734.1

 
$
182.8

 
$
4,981.8

 
 
 
 
 
 
 
 
 
 
 
(1) “Corporate and other” is comprised of our other businesses, including collision centers, auction operations, AutoNation USA stand-alone used vehicle sales and service centers, and parts distribution centers.
(2) Represents revenue recognized during the period for automotive repair and maintenance services.


Transaction Price Allocated to Remaining Performance Obligations
We sell a vehicle maintenance program (the AutoNation Vehicle Care Program or “VCP”) under which a customer purchases a specific number of maintenance services to be redeemed at an AutoNation location over a five-year term from the


7

AUTONATION, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)

date of purchase. We satisfy our performance obligations related to this program and recognize revenue as the maintenance services are rendered, since the customer benefits when we have completed the maintenance service. 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
 
Less Than 1 Year
 
1 - 3 Years
 
3 - 5 Years
Revenue expected to be recognized on VCP contracts sold as of period end
 
$
89.4

 
$
29.6

 
$
44.5

 
$
15.3



As a practical expedient, since automotive repair and maintenance services are performed within one year or less, we do not disclose estimated revenue expected to be recognized in the future for automotive repair and maintenance performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue.

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 maintenance contracts. Performance obligations are satisfied, and revenue is recognized, for VCP maintenance contracts as each underlying service of the multi-year contract is completed during the contract term.
Our receivables from contracts with customers are included in Receivables, net, our current contract asset is included in Other Current Assets, our long-term contract asset is included in Other Assets, our current contract liability is included in Other Current Liabilities, and our long-term contract liability is included in Other Long-Term Liabilities in our Consolidated Balance Sheets.
The following table provides the balances of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities:
 
March 31, 2020
 
December 31, 2019
Receivables from contracts with customers, net
$
324.5

 
$
662.0

Contract Asset (Current)
$
21.7

 
$
26.7

Contract Asset (Long-Term)
$
7.2

 
$
7.0

Contract Liability (Current)
$
32.8

 
$
32.6

Contract Liability (Long-Term)
$
57.3

 
$
57.7

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 that was constrained for performance obligations satisfied in previous periods. The following table presents revenue recognized during the period from amounts included in the contract liability balance at the beginning of the period and performance obligations satisfied in previous periods:
 
Three Months Ended March 31,
 
2020
 
2019
Amounts included in contract liability at the beginning of the period
$
8.5

 
$
13.0

Performance obligations satisfied in previous periods
$

 
$
4.6




8

AUTONATION, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)

Other significant changes include contract assets reclassified to receivables of $14.5 million for the three months ended March 31, 2020, and $24.4 million for the three months ended March 31, 2019.

3.
EARNINGS (LOSS) PER SHARE
Unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and are to be included in the computation of earnings (loss) per share under the two-class method. Our restricted stock awards are considered participating securities because they contain non-forfeitable rights to dividends. As the number of shares granted under such awards that have not yet vested is immaterial, all earnings (loss) per share amounts reflect such shares as if they were fully vested shares and the disclosures associated with the two-class method are not presented. Restricted stock unit (“RSU”) awards are not considered participating securities as they do not contain non-forfeitable rights to dividends.
Basic earnings (loss) per share is computed by dividing net income (loss) by the weighted average number of common shares outstanding for the period, including outstanding unvested restricted stock awards and vested RSU awards. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options and unvested RSU awards. For the three months ended March 31, 2020, stock options and unvested RSU awards were not included in the computation of diluted loss per share because we reported a net loss from continuing operations for this period, and the effect of their inclusion would be anti-dilutive.
The following table presents the calculation of basic and diluted earnings (loss) per share:
 
Three Months Ended
 
March 31,
 
2020
 
2019
Net income (loss) from continuing operations
$
(232.2
)
 
$
92.1

Loss from discontinued operations, net of income taxes
(0.1
)
 
(0.1
)
Net income (loss)
$
(232.3
)
 
$
92.0

 
 
 
 
Basic weighted average common shares outstanding
90.0

 
90.5

Dilutive effect of stock options and unvested RSUs

 
0.2

Diluted weighted average common shares outstanding
90.0

 
90.7

 
 
 
 
Basic earnings (loss) per share amounts(1):
 
 
 
Continuing operations
$
(2.58
)
 
$
1.02

Discontinued operations
$

 
$

Net income (loss)
$
(2.58
)
 
$
1.02

 
 
 
 
Diluted earnings (loss) per share amounts(1):
 
 
 
Continuing operations
$
(2.58
)
 
$
1.02

Discontinued operations
$

 
$

Net income (loss)
$
(2.58
)
 
$
1.01

 
 
 
 
(1) Earnings (loss) per share 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 earnings (loss) per share is as follows:
 
Three Months Ended
 
March 31,
 
2020
 
2019
Anti-dilutive equity instruments excluded from the computation of diluted earnings (loss) per share
3.0

 
2.8




9

AUTONATION, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)

4.
RECEIVABLES, NET
The components of receivables, net of allowances for credit losses, are as follows:
 
March 31,
2020
 
December 31,
2019
Contracts-in-transit and vehicle receivables
$
189.0

 
$
506.0

Trade receivables
117.0

 
136.4

Manufacturer receivables
172.3

 
234.5

Income taxes receivable (see Note 8)

 
1.5

Other
35.3

 
38.8

 
513.6

 
917.2

Less: allowances for credit losses
(0.7
)
 
(0.5
)
Receivables, net
$
512.9

 
$
916.7



Trade receivables represent amounts due for parts and services that have been delivered or 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. Contracts-in-transit and vehicle receivables primarily represent receivables from financial institutions for the portion of the vehicle sales price financed by our customers. We evaluate our receivables for collectability based on past collection experience, current information, and reasonable and supportable forecasts.

5.
INVENTORY AND VEHICLE FLOORPLAN PAYABLE
The components of inventory are as follows:
 
March 31,
2020
 
December 31,
2019
New vehicles
$
2,840.9

 
$
2,490.8

Used vehicles
600.2

 
570.0

Parts, accessories, and other
235.9

 
245.0

Inventory
$
3,677.0

 
$
3,305.8



The components of vehicle floorplan payable are as follows:
 
March 31,
2020
 
December 31,
2019
Vehicle floorplan payable - trade
$
2,197.2

 
$
2,120.6

Vehicle floorplan payable - non-trade
1,485.3

 
1,455.2

Vehicle floorplan payable
$
3,682.5

 
$
3,575.8


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 Unaudited Condensed 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, will generally also be higher than the inventory cost due to the timing of the sale of a vehicle and payment of the related liability.


10

AUTONATION, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)

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.
Our new vehicle floorplan facilities utilize LIBOR-based interest rates, which averaged 2.8% for the three months ended March 31, 2020, and 4.0% for the three months ended March 31, 2019. At March 31, 2020, the aggregate capacity under our new vehicle floorplan facilities to finance our new vehicle inventory was approximately $4.7 billion, of which $3.3 billion had been borrowed.
Our used vehicle floorplan facilities utilize LIBOR-based interest rates, which averaged 3.1% for the three months ended March 31, 2020, and 3.9% for the three months ended March 31, 2019. At March 31, 2020, the aggregate capacity under our used vehicle floorplan facilities with various lenders to finance a portion of our used vehicle inventory was $482.0 million, of which $383.7 million had been borrowed. The remaining borrowing capacity of $98.3 million was limited to $0.6 million based on the eligible used vehicle inventory that could have been pledged as collateral.

6.
GOODWILL AND INTANGIBLE ASSETS, NET
Goodwill and intangible assets, net, consist of the following:
 
March 31,
2020
 
December 31,
2019
Goodwill
$
1,183.6

 
$
1,501.9

 
 
 
 
Franchise rights - indefinite-lived
$
509.0

 
$
566.5

Other intangibles
21.2

 
23.4

 
530.2

 
589.9

Less: accumulated amortization
(7.9
)
 
(8.3
)
Other intangible assets, net
$
522.3

 
$
581.6


Goodwill for our reporting units and our franchise rights are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred.
On March 11, 2020, the World Health Organization declared the current novel coronavirus disease 2019 (“COVID-19”) outbreak to be a global pandemic. As a result of the impacts of the COVID-19 pandemic, we had significant declines in new and used vehicle unit sales during the last two weeks of March 2020, and our parts and service business was operating below full capacity. In addition, our stock price, along with the U.S. stock market in general, was adversely impacted by the COVID-19 pandemic. As a result, our market capitalization as of March 31, 2020, decreased significantly compared to our market capitalization as of the date of our last annual impairment test.
In light of the uncertainty surrounding the COVID-19 pandemic and the decrease in our market capitalization as of March 31, 2020, we concluded that a triggering event had occurred potentially indicating that the fair values of our reporting units were less than their carrying values as of March 31, 2020. Therefore, we performed quantitative goodwill impairment tests for each of our reporting units as of March 31, 2020. As a result of these impairment tests, during the three months ended March 31, 2020, we recorded non-cash goodwill impairment charges totaling $318.3 million, of which $257.4 million related to our Premium Luxury reporting unit, $41.6 million related to our Collision Centers reporting unit, and $19.3 million related to our Parts Center reporting unit. The non-cash impairment charges are reflected as Goodwill Impairment in the accompanying Unaudited Condensed Consolidated Statements of Operations. See Note 11 of the Notes to Unaudited Condensed Consolidated Financial Statements for information about our quantitative goodwill impairment test.


11

AUTONATION, INC.
NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Continued)

Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the three months ended March 31, 2020, were as follows:
 
Domestic
 
Import
 
Premium
Luxury
 
Collision Centers
 
Parts Centers
 
Consolidated
Goodwill at January 1, 2020 (1)
$
227.3

 
$
498.9

 
$
714.9

 
$
41.7

 
$
19.1

 
$
1,501.9

Acquisitions, dispositions, and other adjustments, net (2)

 
(0.1
)
 

 
(0.1
)
 
0.2