PENSKE AUTOMOTIVE GROUP, INC.PAG
PENSKE AUTOMOTIVE GROUP, INC. Segments Disclosure
Segment Information
We have determined that we have four reportable segments as defined in generally accepted accounting principles for segment reporting: (i) Retail Automotive, consisting of our retail automotive dealership operations; (ii) Retail Commercial Truck, consisting of our retail commercial truck dealership operations in the U.S. and Canada; (iii) Other, consisting of our commercial vehicle and power systems distribution operations; and (iv) Non-Automotive Investments, consisting of our equity method investments in non-automotive operations which includes our investment in PTS and other investments. The Retail Automotive reportable segment includes all automotive dealerships and all departments relevant to the operation of the dealerships and our retail automotive joint ventures. The individual dealership operations included in the Retail Automotive reportable segment represent two operating segments: United States Retail Automotive and International Retail Automotive. These operating segments have been aggregated into one reportable segment as their operations (A) have similar economic characteristics (all are automotive dealerships having similar margins), (B) offer similar products and services (all sell new and/or used vehicles, service, parts, and third-party finance and insurance products), (C) have similar target markets and customers (generally individuals), and (D) have similar distribution and marketing practices (all distribute products and services through dealership facilities that market to customers in similar fashions). The accounting policies of the segments are the same and are described in Note 1.
The following table summarizes revenues; cost of sales; selling, general, and administrative expenses; depreciation; floor plan interest expense; other interest expense; equity in earnings of affiliates; and income before income taxes, which is the measure of segment performance by which management allocates resources to its segments and which we refer to as segment income, for each of our reportable segments. Our company's Chief Operating Decision Maker ("CODM") is our Chief Executive Officer. Our CODM uses segment income to evaluate the profitability of our reportable segments, which helps guide decisions on resource allocation. Segment income is also used to analyze budget versus actual results and actual results versus the comparable prior period. This analysis is utilized in assessing the performance of our reportable segments.
| Retail Automotive | Retail Commercial Truck | Other | Non-Automotive Investments | Total | |||||||||||||||||||||||||
| Revenues | |||||||||||||||||||||||||||||
| 2025 | $ | 27,474.6 | $ | 3,411.3 | $ | 922.6 | $ | — | $ | 31,808.5 | |||||||||||||||||||
| 2024 | 27,565.8 | 3,521.1 | 777.9 | — | 31,864.8 | ||||||||||||||||||||||||
| 2023 | 26,598.2 | 3,684.3 | 634.0 | — | 30,916.5 | ||||||||||||||||||||||||
| Cost of sales | |||||||||||||||||||||||||||||
| 2025 | $ | 22,992.2 | $ | 2,869.0 | $ | 730.3 | $ | — | $ | 26,591.5 | |||||||||||||||||||
| 2024 | 23,111.4 | 2,936.6 | 599.7 | — | 26,647.7 | ||||||||||||||||||||||||
| 2023 | 22,208.4 | 3,091.9 | 468.8 | — | 25,769.1 | ||||||||||||||||||||||||
| Selling, general, and administrative expenses: | |||||||||||||||||||||||||||||
| Personnel expenses | |||||||||||||||||||||||||||||
| 2025 | $ | 1,921.3 | $ | 254.7 | $ | 75.0 | $ | — | $ | 2,251.0 | |||||||||||||||||||
| 2024 | 1,875.6 | 264.3 | 72.2 | — | 2,212.1 | ||||||||||||||||||||||||
| 2023 | 1,817.5 | 253.6 | 72.3 | — | 2,143.4 | ||||||||||||||||||||||||
| Advertising expenses | |||||||||||||||||||||||||||||
| 2025 | $ | 127.7 | $ | 3.4 | $ | 1.8 | $ | — | $ | 132.9 | |||||||||||||||||||
| 2024 | 133.3 | 3.2 | 1.8 | — | 138.3 | ||||||||||||||||||||||||
| 2023 | 134.9 | 3.3 | 1.8 | — | 140.0 | ||||||||||||||||||||||||
| Rent & related expenses | |||||||||||||||||||||||||||||
| 2025 | $ | 406.9 | $ | 26.8 | $ | 15.1 | $ | — | $ | 448.8 | |||||||||||||||||||
| 2024 | 393.0 | 25.7 | 13.9 | — | 432.6 | ||||||||||||||||||||||||
| 2023 | 364.0 | 25.8 | 12.9 | — | 402.7 | ||||||||||||||||||||||||
| Other expenses (1) | |||||||||||||||||||||||||||||
| 2025 | $ | 858.8 | $ | 49.6 | $ | 22.9 | $ | — | $ | 931.3 | |||||||||||||||||||
| 2024 | 825.9 | 53.4 | 23.4 | — | 902.7 | ||||||||||||||||||||||||
| 2023 | 784.6 | 57.3 | 25.7 | — | 867.6 | ||||||||||||||||||||||||
| Depreciation | |||||||||||||||||||||||||||||
| 2025 | $ | 150.1 | $ | 16.2 | $ | 6.0 | $ | — | $ | 172.3 | |||||||||||||||||||
| 2024 | 140.7 | 15.1 | 5.5 | — | 161.3 | ||||||||||||||||||||||||
| 2023 | 127.4 | 11.6 | 4.7 | — | 143.7 | ||||||||||||||||||||||||
| Floor plan interest expense | |||||||||||||||||||||||||||||
| 2025 | $ | 145.9 | $ | 16.9 | $ | 7.8 | $ | — | $ | 170.6 | |||||||||||||||||||
| 2024 | 164.2 | 19.2 | 9.7 | — | 193.1 | ||||||||||||||||||||||||
| 2023 | 118.2 | 14.5 | 2.6 | — | 135.3 | ||||||||||||||||||||||||
| Other interest expense | |||||||||||||||||||||||||||||
| 2025 | $ | 76.8 | $ | — | $ | 14.8 | $ | — | $ | 91.6 | |||||||||||||||||||
| 2024 | 82.1 | — | 5.7 | — | 87.8 | ||||||||||||||||||||||||
| 2023 | 90.3 | 1.3 | 1.0 | — | 92.6 | ||||||||||||||||||||||||
| Equity in earnings of affiliates | |||||||||||||||||||||||||||||
| 2025 | $ | 0.6 | $ | — | $ | — | $ | 192.3 | $ | 192.9 | |||||||||||||||||||
| 2024 | 3.1 | — | — | 197.6 | 200.7 | ||||||||||||||||||||||||
| 2023 | 3.9 | — | — | 289.8 | 293.7 | ||||||||||||||||||||||||
| Segment income | |||||||||||||||||||||||||||||
| 2025 (2) | $ | 847.8 | $ | 174.7 | $ | 48.9 | $ | 192.3 | $ | 1,263.7 | |||||||||||||||||||
| 2024 | 842.7 | 203.6 | 46.0 | 197.6 | 1,289.9 | ||||||||||||||||||||||||
| 2023 (3) | 916.1 | 225.0 | 44.2 | 289.8 | 1,475.1 | ||||||||||||||||||||||||
| __________________________ | |||||||||||||||||||||||||||||
(1)Other expenses within SG&A primarily consist of information technology expenses, customer service vehicle loaner expenses, vehicle delivery and preparation expenses, utility expenses, and various other miscellaneous expenses. These expenses are individually not significant to the performance of our segments and are not regularly used by the CODM on a disaggregated basis for purposes of evaluating segment profit or loss. | |||||||||||||||||||||||||||||
(2)Retail automotive segment income includes a gain of $52.3 million from the sale of a retail automotive franchises in the U.S. | |||||||||||||||||||||||||||||
(3)Retail automotive segment income includes $40.7 million of goodwill impairment charges in 2023 related to our former Used Vehicle Dealerships International reporting unit. | |||||||||||||||||||||||||||||
Total capital expenditures by reportable segment are set forth in the table below. As segment assets are not regularly provided to or used by the CODM to measure business performance or allocate resources, total segment assets are not presented.
| Retail Automotive | Retail Commercial Truck | Other | Non-Automotive Investments | Total | |||||||||||||||||||||||||
| Capital expenditures | |||||||||||||||||||||||||||||
| 2025 | $ | 252.1 | $ | 67.3 | $ | 5.2 | $ | — | $ | 324.6 | |||||||||||||||||||
| 2024 | 331.4 | 41.0 | 5.4 | — | 377.8 | ||||||||||||||||||||||||
| 2023 | 317.6 | 60.1 | 8.3 | — | 386.0 | ||||||||||||||||||||||||
The following table presents revenue and long-lived assets (all non-current assets except goodwill, other indefinite-lived intangible assets, and operating lease right-of-use assets) by geographic area:
| Year Ended December 31, | |||||||||||||||||
| 2025 | 2024 | 2023 | |||||||||||||||
| Revenue from external customers: | |||||||||||||||||
| U.S. | $ | 19,578.8 | $ | 19,124.7 | $ | 18,575.6 | |||||||||||
| U.K. | 8,334.4 | 9,322.0 | 9,240.4 | ||||||||||||||
| Other International | 3,895.3 | 3,418.1 | 3,100.5 | ||||||||||||||
| Total revenue from external customers | $ | 31,808.5 | $ | 31,864.8 | $ | 30,916.5 | |||||||||||
| Long-lived assets, net: | |||||||||||||||||
| U.S. | $ | 3,751.1 | $ | 3,561.0 | |||||||||||||
| U.K. | 1,029.4 | 975.5 | |||||||||||||||
| Other International | 480.9 | 438.5 | |||||||||||||||
| Total long-lived assets | $ | 5,261.4 | $ | 4,975.0 | |||||||||||||
No individual country other than the U.S. and the U.K. represented more than 10% of our total revenue from external customers or our total long-lived assets.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 27, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 16, 2024 | |
| 2022 | Feb 21, 2023 | |
| 2021 | Feb 18, 2022 | |
| 2020 | Feb 19, 2021 | |
| 2019 | Feb 21, 2020 | |
| 2018 | Feb 22, 2019 | |
| 2017 | Feb 22, 2018 | |
| 2016 | Feb 24, 2017 | |
| 2015 | Feb 25, 2016 | |
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.