LITHIA MOTORS INCLAD
LITHIA MOTORS INC Segments Disclosure
SEGMENTS
As of December 31, 2025, we had two reportable segments: Vehicle Operations and Financing Operations. Our Vehicle Operations consists of all aspects of our auto merchandising and service operations, including our retail automotive, recreational vehicles, and motorcycle franchises that sell new vehicles, used vehicles, parts, repair and maintenance services, and vehicle F&I products. Vehicle Operations excludes financing provided by our Financing Operations. Our Financing Operations segment provides financing to customers buying and leasing retail vehicles from our Vehicle Operations.
All other remaining activity is reported under “Corporate and Other,” including corporate personnel costs, certain unallocated reserves, internal charges, and other unallocated corporate overhead expenses. Internal charges consist of corporate expense allocations which increase segment income for “Corporate and Other” while decreasing segment income for the other operating segments. These internal corporate expense allocations are used to increase comparability of our dealerships and reflect the capital burden a stand-alone dealership would experience. Examples of these internal allocations include internal rent expense, internal floor plan financing charges, and internal fees charged to offset team members within our corporate headquarters that perform certain dealership functions.
The reportable segments identified above represent our business activities for which discrete financial information is available and for which operating results are regularly provided and reviewed by our CODM to allocate resources and assess performance. Our CODM is our Chief Executive Officer. The CODM assesses segment performance using segment income, which is measured as net segment profit before taxes on a U.S. GAAP basis.
Total asset information by segment is not regularly provided to our CODM or utilized for purposes of assessing performance or allocating resources and, as a result, such information has not been presented below. Certain financing operations asset information including total managed receivables are used by the financing operations segment manager to manage operations and are included in various reports regularly provided to our CODM. See Note 5 – Finance Receivables.
Certain financial information including significant expense detail on a segment basis is as follows:
| Year Ended December 31, | |||||||||||||||||
| ($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Vehicle operations | |||||||||||||||||
| Total revenue | $ | 37,634.9 | $ | 36,188.2 | $ | 31,042.3 | |||||||||||
| Total gross profit | 5,733.0 | 5,561.0 | 5,228.9 | ||||||||||||||
| Floor plan interest expense | (228.2) | (278.8) | (150.9) | ||||||||||||||
| Personnel expense | (2,123.7) | (2,056.0) | (1,850.0) | ||||||||||||||
| Rent and facility expense | (745.7) | (701.2) | (552.1) | ||||||||||||||
| Advertising expense | (289.8) | (277.4) | (271.7) | ||||||||||||||
Other vehicle operations expenses1 | (1,121.5) | (1,047.1) | (808.8) | ||||||||||||||
| Vehicle operations income | 1,224.1 | 1,200.5 | 1,595.4 | ||||||||||||||
| Financing operations | |||||||||||||||||
| Interest and fee income | 407.4 | 340.8 | 249.4 | ||||||||||||||
| Interest expense | (202.1) | (195.1) | (170.5) | ||||||||||||||
| Total interest margin | 205.3 | 145.7 | 78.9 | ||||||||||||||
| Lease income | 91.6 | 74.6 | 19.1 | ||||||||||||||
| Lease costs | (73.5) | (60.3) | (8.4) | ||||||||||||||
| Lease income, net | 18.1 | 14.3 | 10.7 | ||||||||||||||
| Provision expense | (97.3) | (106.7) | (98.8) | ||||||||||||||
Other financing operations expenses2 | (51.5) | (44.9) | (36.7) | ||||||||||||||
| Financing operations income (loss) | 74.6 | 8.4 | (45.9) | ||||||||||||||
| Total segment income for reportable segments | 1,298.7 | 1,208.9 | 1,549.5 | ||||||||||||||
Corporate and other3 | 330.2 | 326.5 | 187.8 | ||||||||||||||
| Depreciation and amortization | (262.4) | (245.6) | (195.8) | ||||||||||||||
| Other interest expense | (275.5) | (257.8) | (201.2) | ||||||||||||||
Other income, net | 17.4 | 39.3 | 22.0 | ||||||||||||||
| Income before income taxes | $ | 1,108.4 | $ | 1,071.3 | $ | 1,362.3 | |||||||||||
(1)Other vehicle operations expenses includes management fees, data processing fees, outside services fees, insurance expense, office and other supplies expense, banking expense, and certain overhead expenses.
(2)Other financing operations expenses includes personnel expense, data processing fees, outside services fees, expenses attributable to underwriting, funding, and loan servicing, and certain overhead expenses.
(3)Corporate and other includes management fee income.
The following table presents revenue and assets by geographic area:
| Year Ended December 31, | |||||||||||||||||
($ in millions) | 2025 | 2024 | 2023 | ||||||||||||||
| Revenue from external customers: | |||||||||||||||||
| United States | $ | 29,554.4 | $ | 28,247.0 | $ | 27,979.6 | |||||||||||
| United Kingdom | 6,914.1 | 6,788.5 | 1,904.6 | ||||||||||||||
| Canada | 1,166.4 | 1,152.7 | 1,158.1 | ||||||||||||||
| Total revenue from external customers | $ | 37,634.9 | $ | 36,188.2 | $ | 31,042.3 | |||||||||||
As of December 31, | |||||||||||
($ in millions) | 2025 | 2024 | |||||||||
Long-lived assets: | |||||||||||
| United States | $ | 4,593.6 | $ | 4,263.0 | |||||||
| United Kingdom | 1,163.2 | 1,073.2 | |||||||||
| Canada | 254.5 | 240.4 | |||||||||
| Total long-lived assets | $ | 6,011.3 | 5,576.6 | ||||||||
| Total assets: | |||||||||||
| United States | $ | 20,392.9 | $ | 18,872.9 | |||||||
| United Kingdom | 3,676.9 | 3,297.9 | |||||||||
| Canada | 1,037.4 | 951.8 | |||||||||
| Total assets | $ | 25,107.2 | 23,122.6 | ||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 25, 2026 | Showing above |
| 2024 | Feb 24, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.