ABG filing — read by section

Item 8. Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 
 
 
 INDEX TO CONSOLIDATED FINANCIAL STATEMENTS 
 
 
 Page 
 Reports of Independent Registered Public Accounting Firm (PCAOB ID: 42 ) 
 61 
 
 
 Consolidated Balance Sheets as of December 31, 2025 and 2024 
 65 
 
 
 Consolidated Statements of Income for the Years Ended December 31, 2025, 2024, and 2023 
 66 
 
 
 Consolidated Statements of Comprehensive Income for the Years Ended December 31, 2025, 2024, and 2023 
 67 
 
 
 Consolidated Statements of Shareholders' Equity for the Years Ended December 31, 2025, 2024, and 2023 
 68 
 
 
 Consolidated Statements of Cash Flows for the Years Ended December 31, 2025, 2024, and 2023 
 69 
 
 
 Notes to Consolidated Financial Statements 
 71 
 

 
 
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 Report of Independent Registered Public Accounting Firm 
 
 
 To the Shareholders and the Board of Directors of Asbury Automotive Group, Inc. 
 Opinion on the Financial Statements 
 We have audited the accompanying consolidated balance sheets of Asbury Automotive Group, Inc. (the Company) as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes (collectively referred to as the “consolidated financial statements”). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company at December 31, 2025 and 2024, and the results of its operations and its cash flows for each of the three years in the period ended December 31, 2025, in conformity with U.S. generally accepted accounting principles. 
 We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company's internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework), and our report dated February 20, 2026 expressed an unqualified opinion thereon. 
 Basis for Opinion 
 These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on the Company’s financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that our audits provide a reasonable basis for our opinion. 
 Critical Audit Matter 
 The critical audit matter communicated below is a matter arising from the current period audit of the financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the financial statements and (2) involved our especially challenging, subjective or complex judgments. The communication of the critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates. 
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 Valuation of Manufacturer Franchise Rights 
 
 Description of the Matter At December 31, 2025, the manufacturer franchise rights balance was $2.1 billion. As disclosed in Note 10 of the consolidated financial statements, the manufacturer franchise rights are assessed for impairment annually as of October 1st, or more often if events or circumstances indicate that impairment may have occurred. If the fair value of a franchise right is less than its carrying amount, an impairment loss is recognized in an amount equal to the difference. 
 Auditing the Company’s calculation of the fair value for certain manufacturer franchise rights based on our risk assessment procedures was complex and required significant judgment. In particular, the determination of the fair value of certain manufacturer franchise rights described above using the discounted cash flows method required management to develop certain significant assumptions, including future EBITDA margins and weighted average cost of capital, which are forward looking and affected by expectations about economic conditions, industry factors and dealer-specific factors. 
 
 How We Addressed the Matter in Our Audit We obtained an understanding, evaluated the design and tested the operating effectiveness of the Company’s controls over the certain manufacturer franchise rights fair value estimates described above, including controls over the significant assumptions described above. 
 To test the fair value of certain manufacturer franchise rights described above, we tested the significant assumptions described above. We compared those significant assumptions to current industry, market and economic trends, as well as to the Company's historical results. In addition, we assessed the accuracy of the Company’s projections by comparing them to actual operating results. We also performed a sensitivity analysis of the significant assumptions described above to evaluate the potential change in the fair value of certain manufacturer franchise rights resulting from changes in underlying assumptions. We also involved our valuation specialists to assist in evaluating the valuation methodologies and certain significant assumptions used in the valuation models. 
 

 
 
 /s/ Ernst & Young LLP 
 We have served as the Company’s auditor since 2008. 
 Atlanta, Georgia 
 February 20, 2026 
 
 
 
 
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 Report of Independent Registered Public Accounting Firm 
 
 
 To the Shareholders and the Board of Directors of Asbury Automotive Group, Inc. 
 
 
 Opinion on Internal Control Over Financial Reporting 
 We have audited Asbury Automotive Group, Inc.’s internal control over financial reporting as of December 31, 2025, based on criteria established in Internal Control—Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission (2013 framework) (the COSO criteria). In our opinion, Asbury Automotive Group, Inc. (the Company) maintained, in all material respects, effective internal control over financial reporting as of December 31, 2025, based on the COSO criteria. 
 As indicated in the accompanying Management’s Report on Internal Control Over Financial Reporting, management’s assessment of and conclusion on the effectiveness of internal control over financial reporting did not include the internal controls of The Herb Chambers Companies, which is included in the 2025 consolidated financial statements of the Company and constituted $1.89 billion of total assets as of December 31, 2025 and $1.16 billion of revenues for the year then ended. Our audit of internal control over financial reporting of the Company also did not include an evaluation of the internal control over financial reporting of The Herb Chambers Companies. 
 We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2025 and 2024, the related consolidated statements of income, comprehensive income, shareholders' equity and cash flows for each of the three years in the period ended December 31, 2025, and the related notes and our report dated February 20, 2026 expressed an unqualified opinion thereon. 
 Basis for Opinion 
 The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting included in the accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB. 
 We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. 
 Our audit included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, testing and evaluating the design and operating effectiveness of internal control based on the assessed risk, and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. 
 Definition and Limitations of Internal Control Over Financial Reporting 
 A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements. 
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 Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate. 
 
 
 /s/ Ernst & Young LLP 
 Atlanta, Georgia 
 February 20, 2026 
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 ASBURY AUTOMOTIVE GROUP, INC. 
 CONSOLIDATED BALANCE SHEETS 
 (In millions, except par value and share data) 
 
 As of December 31, 
 2025 2024 
 ASSETS 
 CURRENT ASSETS: 
 Cash and cash equivalents $ 40.4 $ 69.4 
 Short term investments 0.5 14.4 
 Contracts-in-transit, net 239.2 263.8 
 Accounts receivable, net 294.6 285.5 
 Inventories, net 2,135.8 1,978.8 
 Assets held for sale 268.9 174.4 
 Other current assets 400.9 351.7 
 Total current assets 3,380.2 3,137.9 
 INVESTMENTS 414.7 334.2 
 PROPERTY AND EQUIPMENT, net 3,070.4 2,550.7 
 OPERATING LEASE RIGHT-OF-USE ASSETS 240.6 220.1 
 GOODWILL 2,281.3 2,044.7 
 INTANGIBLE FRANCHISE RIGHTS 2,097.6 1,911.7 
 
 
 OTHER LONG-TERM ASSETS 133.3 137.8 
 Total assets $ 11,618.2 $ 10,337.0 
 LIABILITIES AND SHAREHOLDERS' EQUITY 
 CURRENT LIABILITIES: 
 Floor plan notes payable—trade, net $ 343.1 $ 349.9 
 Floor plan notes payable—non-trade, net 1,683.9 1,344.8 
 Current maturities of long-term debt 479.2 114.7 
 Current maturities of operating leases 27.6 28.1 
 Accounts payable and accrued liabilities 780.3 761.4 
 Deferred revenue—current 243.6 235.5 
 Liabilities associated with assets held for sale 1.8 1.9 
 Total current liabilities 3,559.5 2,836.3 
 LONG-TERM DEBT 3,092.8 3,023.9 
 LONG-TERM LEASE LIABILITY 221.6 200.0 
 DEFERRED REVENUE 584.6 530.5 
 DEFERRED INCOME TAXES 210.6 187.7 
 OTHER LONG-TERM LIABILITIES 57.1 56.4 
 COMMITMENTS AND CONTINGENCIES (Note 21) 
 SHAREHOLDERS' EQUITY: 
 Preferred stock, $ .01 par value, 10,000,000 shares authorized; none issued or outstanding 
 — — 
 Common stock, $ .01 par value, 90,000,000 shares authorized; 41,338,419 and 41,649,426 shares issued, including shares held in treasury, respectively 
 0.4 0.4 
 Additional paid-in capital 1,327.6 1,305.1 
 Retained earnings 3,616.2 3,218.9 
 Treasury stock, at cost; 22,109,690 and 22,065,478 shares, respectively 
 ( 1,092.8 ) ( 1,079.2 ) 
 Accumulated other comprehensive income 40.6 56.8 
 Total shareholders' equity 3,891.9 3,502.1 
 Total liabilities and shareholders' equity $ 11,618.2 $ 10,337.0 

 
 
 See accompanying Notes to Consolidated Financial Statements 
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 ASBURY AUTOMOTIVE GROUP, INC. 
 CONSOLIDATED STATEMENTS OF INCOME 
 (In millions, except per share data) 
 
 For the Year Ended December 31, 
 2025 2024 2023 
 REVENUE: 
 New vehicle $ 9,496.2 $ 8,849.7 $ 7,630.7 
 Used vehicle 5,225.4 5,218.2 4,414.3 
 Parts and service 2,506.8 2,354.7 2,081.5 
 Finance and insurance, net 770.6 766.0 676.2 
 TOTAL REVENUE 17,999.0 17,188.6 14,802.7 
 COST OF SALES: 
 New vehicle 8,874.2 8,209.3 6,927.8 
 Used vehicle 4,966.3 4,972.7 4,150.2 
 Parts and service 1,034.3 1,003.5 931.0 
 Finance and insurance 52.5 54.4 37.9 
 TOTAL COST OF SALES 14,927.3 14,240.0 12,046.9 
 GROSS PROFIT 3,071.7 2,948.6 2,755.8 
 OPERATING EXPENSES: 
 Selling, general and administrative 1,987.6 1,888.5 1,617.4 
 Depreciation and amortization 82.4 75.0 67.7 
 Asset impairments 141.0 149.5 117.2 
 
 INCOME FROM OPERATIONS 860.6 835.6 953.5 
 OTHER EXPENSES (INCOME): 
 Floor plan interest expense 91.2 89.9 9.6 
 Other interest expense, net 187.5 179.1 156.1 
 
 
 
 
 Gain on dealership divestitures, net ( 80.2 ) ( 8.6 ) ( 13.5 ) 
 Total other expenses, net 198.4 260.3 152.2 
 INCOME BEFORE INCOME TAXES 662.2 575.3 801.3 
 Income tax expense 170.2 145.0 198.8 
 
 
 NET INCOME $ 492.0 $ 430.3 $ 602.5 
 EARNINGS PER COMMON SHARE: 
 Basic— 
 Net Income $ 25.20 $ 21.58 $ 28.87 
 Diluted— 
 Net Income $ 25.13 $ 21.50 $ 28.74 
 WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: 
 Basic 19.5 19.9 20.9 
 
 
 Performance share units 0.1 0.1 0.1 
 Diluted 19.6 20.0 21.0 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 See accompanying Notes to Consolidated Financial Statements 
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 ASBURY AUTOMOTIVE GROUP, INC. 
 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME 
 (In millions) 
 
 
 
 For the Year Ended December 31, 
 2025 2024 2023 
 Net income $ 492.0 $ 430.3 $ 602.5 
 Other comprehensive income (loss) - net of tax: 
 Change in fair value of cash flow swaps ( 29.6 ) ( 3.2 ) ( 22.6 ) 
 
 Income tax benefit associated with cash flow swaps 7.1 0.9 5.1 
 Unrealized gains (losses) on available-for-sale debt securities 8.1 ( 2.5 ) 5.2 
 Income tax (expense) benefit associated with available-for-sale debt securities ( 1.9 ) 0.6 ( 1.1 ) 
 Comprehensive income $ 475.7 $ 426.1 $ 589.1 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 See accompanying Notes to Consolidated Financial Statements 
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 ASBURY AUTOMOTIVE GROUP, INC. 
 CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY 
 (Dollars in millions) 
 
 Common Stock Additional
Paid-in
Capital Retained
Earnings Treasury Stock Accumulated
Other
Comprehensive
Income (Loss) Total 
 Shares Amount Shares Amount 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 Balances, December 31, 2022 43,593,809 $ 0.4 $ 1,281.4 $ 2,610.1 22,024,479 $ ( 1,063.0 ) $ 74.4 $ 2,903.5 
 Comprehensive Income: 
 Net income — — — 602.5 — — — 602.5 
 Change in fair value of cash flow swaps, net of reclassification adjustment and $ 5.1 million tax benefit 
 — — — — — — ( 17.5 ) ( 17.5 ) 
 Unrealized gain on changes in fair value of debt securities, net of $ 1.1 million tax expense 
 — — — — — — 4.1 4.1 
 Comprehensive income — — — 602.5 — — ( 13.4 ) 589.1 
 Share-based compensation — — 23.5 — — — — 23.5 
 Issuance of common stock, net of forfeitures, in connection with share-based payment arrangements 128,563 — — — — — — — 
 Share issues (repurchases) — — — — 1,316,167 ( 260.6 ) — ( 260.6 ) 
 Repurchase of common stock associated with net share settlements of employee share-based awards — — — — 48,262 ( 11.4 ) — ( 11.4 ) 
 Retirement of common stock ( 1,370,371 ) — ( 16.5 ) ( 251.1 ) ( 1,370,371 ) 267.7 — — 
 Balances, December 31, 2023 42,352,001 $ 0.4 $ 1,288.4 $ 2,961.5 22,018,537 $ ( 1,067.3 ) $ 61.1 $ 3,244.1 
 Comprehensive Income: 
 Net income — — — 430.3 — — — 430.3 
 Change in fair value of cash flow swaps, net of reclassification adjustment and $ 0.9 million tax benefit 
 — — — — — — ( 2.3 ) ( 2.3 ) 
 Unrealized loss on changes in fair value of debt securities, net of $ 0.6 million tax benefit 
 — — — — — — ( 1.9 ) ( 1.9 ) 
 Comprehensive income — — — 430.3 — — ( 4.2 ) 426.1 
 Share-based compensation — — 26.7 — — — — 26.7 
 Issuance of common stock, net of forfeitures, in connection with share-based payment arrangements 127,722 — — — — — — — 
 Share issues (repurchases) — — — — 830,297 ( 184.6 ) — ( 184.6 ) 
 Repurchase of common stock associated with net share settlements of employee share-based awards — — — — 46,941 ( 10.2 ) — ( 10.2 ) 
 Retirement of common stock ( 830,297 ) — ( 10.0 ) ( 173.0 ) ( 830,297 ) 183.0 — — 
 Balances, December 31, 2024 41,649,426 $ 0.4 $ 1,305.1 $ 3,218.9 22,065,478 $ ( 1,079.2 ) $ 56.8 $ 3,502.1 
 Comprehensive Income: 
 Net income — — — 492.0 — — — 492.0 
 Change in fair value of cash flow swaps, net of reclassification adjustment and $ 7.1 million tax benefit 
 — — — — — — ( 22.5 ) ( 22.5 ) 
 Unrealized gain on changes in fair value of debt securities, net of $ 1.9 million tax expense 
 — — — — — — 6.2 6.2 
 Comprehensive income — — — 492.0 — — ( 16.3 ) 475.7 
 Share-based compensation — — 27.7 — — — — 27.7 
 Issuance of common stock, net of forfeitures, in connection with share-based payment arrangements 121,745 — — — — — — — 
 Share issues (repurchases) — — — — 432,752 ( 99.9 ) — ( 99.9 ) 
 Repurchase of common stock associated with net share settlements of employee share-based awards — — — — 44,212 ( 13.7 ) — ( 13.7 ) 
 Retirement of common stock ( 432,752 ) — ( 5.2 ) ( 94.7 ) ( 432,752 ) 99.9 — — 
 Balances, December 31, 2025 41,338,419 $ 0.4 $ 1,327.6 $ 3,616.2 22,109,690 $ ( 1,092.8 ) $ 40.6 $ 3,891.9 

 See accompanying Notes to Consolidated Financial Statements 
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 ASBURY AUTOMOTIVE GROUP, INC. 
 CONSOLIDATED STATEMENTS OF CASH FLOWS 
 (In millions) 
 
 
 
 For the Year Ended December 31, 
 2025 2024 2023 
 CASH FLOW FROM OPERATING ACTIVITIES: 
 Net income $ 492.0 $ 430.3 $ 602.5 
 Adjustments to reconcile net income to net cash provided by operating activities— 
 Depreciation and amortization 82.4 75.0 67.7 
 Share-based compensation 27.7 26.7 23.5 
 Deferred income taxes 28.2 52.7 39.7 
 Asset impairments 141.0 149.5 117.2 
 
 
 
 
 Loaner vehicle amortization 56.8 47.2 34.8 
 
 Gain on divestitures, net ( 80.2 ) ( 8.6 ) ( 13.5 ) 
 Change in right-of-use asset 30.8 28.7 26.8 
 Other adjustments, net 5.1 6.7 ( 4.0 ) 
 Changes in operating assets and liabilities, net of acquisitions and divestitures— 
 Contracts-in-transit 24.6 15.9 ( 58.9 ) 
 Accounts receivable ( 9.3 ) ( 60.0 ) ( 54.6 ) 
 
 Inventories 72.7 ( 230.2 ) ( 575.7 ) 
 Other current assets ( 67.0 ) ( 15.3 ) ( 133.4 ) 
 Floor plan notes payable—trade, net ( 6.8 ) 154.8 144.1 
 Deferred revenue 62.2 29.3 22.8 
 Accounts payable and accrued liabilities ( 36.0 ) 12.8 119.5 
 Operating lease liabilities ( 30.2 ) ( 27.2 ) ( 26.7 ) 
 Other long-term assets and liabilities, net ( 18.7 ) ( 17.1 ) ( 18.8 ) 
 Net cash provided by operating activities 775.2 671.2 313.0 
 CASH FLOW FROM INVESTING ACTIVITIES: 
 Capital expenditures—excluding real estate ( 186.0 ) ( 162.6 ) ( 142.3 ) 
 Capital expenditures—real estate ( 19.3 ) ( 145.6 ) — 
 Purchases of previously leased real estate — ( 11.9 ) — 
 Acquisitions ( 1,761.8 ) ( 4.7 ) ( 1,500.0 ) 
 Proceeds from dealership divestitures 566.5 196.3 30.7 
 Purchases of debt securities—available-for-sale ( 189.4 ) ( 165.0 ) ( 195.2 ) 
 
 Proceeds from the sale of debt securities—available-for-sale 132.8 149.8 60.3 
 Proceeds from the sale of equity securities — — 51.8 
 Proceeds from the sale of assets — 6.5 16.3 
 Net cash (used in) investing activities ( 1,457.2 ) ( 137.2 ) ( 1,678.4 ) 
 CASH FLOW FROM FINANCING ACTIVITIES: 
 Floor plan borrowings—non-trade 10,382.0 9,445.7 8,385.8 
 Floor plan borrowings—acquisitions 262.7 — 256.1 
 Floor plan repayments—non-trade ( 10,214.9 ) ( 9,657.3 ) ( 7,059.8 ) 
 Floor plan repayments—divestitures ( 90.7 ) ( 34.1 ) — 
 Proceeds from borrowings 546.5 — — 
 Repayments of borrowings ( 234.1 ) ( 71.4 ) ( 126.0 ) 
 Proceeds from revolving credit facility 2,152.7 1,213.5 329.0 
 Repayments of revolving credit facility ( 2,032.7 ) ( 1,213.5 ) ( 329.0 ) 
 
 
 Payment of debt issuance costs ( 5.7 ) — ( 1.2 ) 
 Purchase of treasury stock ( 99.9 ) ( 183.0 ) ( 267.7 ) 

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 For the Year Ended December 31, 
 2025 2024 2023 
 Repurchases of common stock, including amounts associated with net share settlements of employee share-based awards ( 12.8 ) ( 10.2 ) ( 11.4 ) 
 
 
 Net cash provided by (used in) financing activities 653.1 ( 510.3 ) 1,175.8 
 Net (decrease) increase in cash and cash equivalents 
 ( 29.0 ) 23.7 ( 189.6 ) 
 CASH AND CASH EQUIVALENTS, beginning of period 69.4 45.7 235.3 
 CASH AND CASH EQUIVALENTS, end of period $ 40.4 $ 69.4 $ 45.7 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 See Note 18 for supplemental cash flow information 
 See accompanying Notes to Consolidated Financial Statements 
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 ASBURY AUTOMOTIVE GROUP, INC. 
 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 
 (December 31, 2025, 2024, and 2023) 
 
 1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES 
 Asbury Automotive Group, Inc., a Delaware corporation organized in 2002 (the "Company"), is one of the largest automotive retailers in the United States. Our store operations are conducted by our subsidiaries. 
 As of December 31, 2025, we owned and operated 223 new vehicle franchises ( 171 vehicle dealership locations), representing 36 brands of automobiles, and 39 collision centers in 15 states. Our stores offer an extensive range of automotive products and services, including new and used vehicles; parts and service, which includes repair and maintenance services, replacement parts and collision repair services (collectively referred to as "parts and services" or "P&S"); and finance and insurance ("F&I") products, including arranging vehicle financing through third parties and aftermarket products, such as extended service contracts, guaranteed asset protection ("GAP") debt cancellation and prepaid maintenance. The finance and insurance products are provided by Total Care Auto, Powered by Asbury ("TCA") and independent third parties. The Company manages its operations in two reportable segments: Dealerships and TCA. 
 Our operating results are generally subject to seasonal variations. Demand for new vehicles is generally highest during the second and third quarters of each year and, accordingly, we expect our revenues to generally be higher during these periods. In addition, we typically experience higher sales of luxury vehicles in the fourth quarter, which have higher average selling prices and gross profit per vehicle retailed. Revenues and operating results may be impacted significantly from quarter to quarter by changing economic conditions, inventory availability, vehicle manufacturer incentive programs, or adverse weather events. 
 Basis of Presentation 
 The accompanying consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP"), and reflect the consolidated accounts of the Company and our wholly owned subsidiaries. All intercompany transactions have been eliminated in consolidation. If necessary, reclassifications of amounts previously reported have been made to the accompanying consolidated financial statements in order to conform to current presentation. Amounts presented have been calculated using non-rounded amounts for all periods presented and therefore certain amounts may not compute. 
 Use of Estimates 
 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, disclosures of contingent assets and liabilities as of the date of the financial statements, and the reported amounts of revenues and expenses during the periods presented. Actual results could differ materially from these estimates. Estimates and assumptions are reviewed quarterly, and the effects of any revisions are reflected in the consolidated financial statements in the period they are determined to be necessary. Estimates made in the accompanying consolidated financial statements include, but are not limited to, those relating to inventory valuation reserves, reserves for chargebacks against revenue recognized from the sale of finance and insurance products, reserves for self-insurance programs, and certain assumptions related to goodwill and dealership franchise rights intangible assets. 
 Cash and Cash Equivalents 
 Cash and cash equivalents include investments in money market accounts and short-term certificates of deposit, which have maturity dates of less than 90 days when purchased. 
 Restricted Cash and Securities 
 TCA places securities on statutory deposit with certain state agencies to retain the right to do business in those states. Securities held on deposit with various state regulatory authorities had a fair value of $ 4.1 million at December 31, 2025. These securities are reflected in investments in our consolidated balance sheets. 
 Short-Term Investments 
 Short-term investments consist of debt securities that are callable or have a maturity date within the next 12 months and are classified as current assets. Debt securities classified as short-term investments are designated as available-for-sale as management intends to hold these securities for indefinite periods of time or may sell the securities in response to changes in interest rates, prepayments, or other similar factors. Available-for-sale debt securities are reported at fair market value with any unrealized gain or loss, net of applicable income tax, reported in other comprehensive income, as a separate component of 
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 shareholders’ equity. Premiums and discounts on debt securities classified as short-term investments are amortized or accreted using the effective interest method over the period from the purchase date to the expected maturity or call date of the related security and are reported in net income. 
 Investments 
 Investments consist of available-for-sale debt securities. These securities are classified as non-current investments as they are not intended to fund current operations or have stated call dates or maturity dates beyond the next 12 months. 
 Debt securities classified as non-current investments are designated as available-for-sale as management intends to hold these securities for indefinite periods of time or may sell the securities in response to changes in interest rates, prepayments, or other similar factors. Available-for-sale debt securities included in non-current investments are reported at fair market value with any unrealized gain or loss, net of applicable income tax, reported in other comprehensive income, as a separate component of shareholders’ equity. Premiums and discounts on debt securities included in non-current investments are amortized or accreted, as applicable, using the effective interest method over the period from the purchase date to the expected maturity or call date of the related security and are reported in net income. 
 We review the debt securities portfolio at the security level on a quarterly basis for potential credit losses, which takes into consideration numerous factors. Some factors evaluated include changes in credit ratings, financial conditions of the issuer, recent payment activity, and other industry specific economic conditions. If a security is considered to have a potential credit loss, we compare the present value of expected cash flows to the amortized cost basis of the security to estimate the allowance for credit losses. The amount of the allowance is limited to the gross unrealized loss on an individual security. An unrealized loss on a debt security is generally considered to not be related to credit when the fair value of the security is below the carrying value of the security primarily due to changes in risk-free interest rates and when there has not been a significant deterioration in the financial condition of the issuer. If the Company no longer has the intent or ability to hold a security in an unrealized loss position until recovery of the security’s cost basis, a loss is realized immediately in net income. 
 Contracts-In-Transit 
 Contracts-in-transit represent receivables from third-party finance companies for the portion of new and used vehicle purchase price financed by customers through sources arranged by us. 
 Inventories 
 Inventories are stated at the lower of cost and net realizable value. We use the specific identification method to value vehicle inventories and parts and accessories are valued at the lower of cost or net realizable value. Our new vehicle sales history indicates that the vast majority of the new vehicles we sell are sold for, or in excess of, our cost to purchase those vehicles. Therefore, we generally do not maintain a reserve for new vehicle inventory. We maintain a reserve for used vehicle inventory where cost basis exceeds net realizable value. In assessing lower of cost and net realizable value for used vehicles, we consider (i) the aging of our used vehicles, (ii) historical sales experience of used vehicles, and (iii) current market conditions and trends in used vehicle sales. We also review and consider the following metrics related to used vehicle sales (both on a recent and longer-term historical basis): (i) days of supply in our used vehicle inventory, (ii) used vehicle units sold at less than original cost as a percentage of total used vehicles sold, and (iii) average vehicle selling price of used vehicle units sold at less than original cost. We then determine the appropriate level of reserve required to reduce our used vehicle inventory to the lower of cost and net realizable value, and record the resulting adjustment in the period in which we determine a loss has occurred. The level of reserve determined to be appropriate for each reporting period is considered to be a permanent inventory write-down, and therefore is only released upon the sale of the related inventory. 
 We receive assistance from certain automobile manufacturers in the form of advertising and floor plan interest credits. Manufacturer advertising credits that are reimbursements of costs associated with specific advertising programs are recognized as a reduction of advertising expense in the period they are earned. All other manufacturer advertising and certain floor plan interest credits are accounted for as purchase discounts, and are recorded as a reduction of inventory and recognized as a reduction to new vehicle cost of sales in the accompanying consolidated statements of income in the period the related vehicle is sold. 
 Property and Equipment 
 Property and equipment are recorded at cost and depreciated using the straight-line method over their estimated useful lives. Depreciation is included in depreciation and amortization on the accompanying consolidated statements of income. Leasehold 
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 improvements are capitalized and amortized over the lesser of the remaining lease term or the useful life of the related asset. The ranges of estimated useful lives are as follows (in years): 
 
 Buildings and improvements 10 - 40 
 
 Machinery and equipment 5 - 10 
 
 Furniture and fixtures 3 - 10 
 
 Company vehicles 3 - 5 
 

 Expenditures for major additions or improvements, which extend the useful lives of assets, are capitalized. Minor replacements, maintenance and repairs, which do not improve or extend the lives of such assets, are expensed as incurred. We capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and is depreciated over the estimated useful lives of the assets. 
 We review property and equipment for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. When we test our long-lived assets for impairment, we first compare the carrying amount of the underlying assets to their net recoverable value by reviewing the undiscounted cash flows expected from the use and eventual disposition of the underlying assets. If the carrying amount of the underlying assets is less than their net recoverable value, then we calculate an impairment equal to the excess of the carrying amount over the fair market value, and the impairment loss would be charged to operations in the period identified. 
 Acquisitions 
 Acquisitions are accounted for under the acquisition method of accounting and the assets acquired and liabilities assumed are recorded at their fair value at the acquisition date. Results of acquired businesses, which are primarily dealerships, are included in our accompanying consolidated statements of income commencing on the date of acquisition. Our acquisitions are accounted for such that the assets acquired and liabilities assumed are recognized at their acquisition date fair values, with any excess of the consideration transferred over the estimated fair values of the identifiable net assets acquired recorded as goodwill. Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Upon the completion of purchase accounting, the fair value of our manufacturer franchise rights are determined as of the acquisition date, by discounting the projected cash flows specific to each franchise. Included in this analysis are market participant assumptions related to the cash flows directly attributable to the franchise rights, including year-over-year and terminal growth rates, working capital requirements, weighted average cost of capital and future EBITDA margins. 
 Goodwill and Franchise Rights 
 Goodwill represents the excess cost of an acquired business over the estimated fair market value of its identifiable net assets. We have determined that, based on how we integrate acquisitions into our business, how the components of our business share resources and interact with one another, and how we review the results of our operations, that we have several geographic region operating segments which consist of our dealerships. We have determined that the dealerships in each of our operating segments are components that are aggregated into three geographic region reporting units for the purpose of testing goodwill for impairment, as they (i) have similar economic characteristics, (ii) offer similar products and services (all of our dealerships offer new and used vehicles, service, parts and third-party finance and insurance products), (iii) have similar customers, (iv) have similar distribution and marketing practices (all of our dealerships distribute products and services through dealership facilities that market to customers in similar ways), and (v) operate under similar regulatory environments. Our dealership operating segments are aggregated into our Dealerships reportable segment. Goodwill associated with TCA is tested for impairment at the operating segment level which is the same as the reporting unit for this business. 
 Our only significant identifiable intangible assets, other than goodwill, are our rights under franchise agreements with manufacturers, which are recorded at an individual franchise level. The fair value of our manufacturer franchise rights are determined as of the acquisition date, by discounting the projected cash flows specific to each franchise. We have determined that manufacturer franchise rights have an indefinite life, as there are no economic, contractual or other factors that limit their useful lives, and they are expected to generate cash flows indefinitely due to the historically long lives of the manufacturers' brand names. Furthermore, to the extent that any agreements evidencing our manufacturer franchise rights would expire, we expect that we would be able to renew those agreements in the ordinary course of business. 
 Goodwill and manufacturer franchise rights are deemed to have indefinite lives and therefore are not subject to amortization. We review goodwill and manufacturer franchise rights for impairment annually as of October 1 st , or more often if events or circumstances indicate that impairment may have occurred. We are subject to financial statement risk to the extent 
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 that goodwill becomes impaired due to decreases in the fair value of our automotive retail business or manufacturer franchise rights become impaired due to decreases in the fair value of our individual franchises. 
 Debt Issuance Costs 
 Debt issuance costs are presented as a contra-liability within current maturities of long-term debt or long-term debt on our consolidated balance sheets, except for debt issuance costs associated with our line-of-credit arrangements, which are presented as an asset within other current assets or other long-term assets on our consolidated balance sheets. Debt issuance costs are amortized to floor plan interest expense and other interest expense, net in the accompanying consolidated statements of income through maturity using the effective interest method or the straight-line method for our line-of-credit arrangements. 
 Derivative Instruments and Hedging Activities 
 From time to time, we utilize derivative financial instruments to manage our interest rate risk. The types of risks hedged are those relating to the variability of cash flows caused by fluctuations in interest rates. We document our risk management strategy and assess hedge effectiveness at each interest rate swap's inception and during the term of each hedge. Derivatives are reported at fair value on the accompanying consolidated balance sheets. 
 The changes in fair value on our hedges is reported as a component of accumulated other comprehensive loss on the accompanying consolidated balance sheets, and reclassified to other interest expense, net in the accompanying consolidated statements of income in the period during which the hedged transaction affects earnings. 
 Self-insurance Programs 
 We are self-insured for most of our employee medical claims and maintain stop-loss insurance for large-dollar individual claims. We have high-deductible insurance programs for workers compensation, property and general liability claims. We maintain and review our claim and loss history to assist in assessing our expected future liability for these claims. We also use professional service providers, such as account administrators and actuaries, to help us accumulate and assess this information. Provisions for retained losses and deductibles are made by charges to expense based upon periodic evaluations of the estimated ultimate liabilities on reported and unreported claims. 
 Revenue Recognition 
 We recognize revenue in accordance with ASC 606, Revenue from Contracts with Customers ("Topic 606"). Under that guidance, the transaction price is attributed to the underlying performance obligations in the contract and revenue is deferred and recognized as income as the Company satisfies the performance obligations in the contract. Incremental costs of obtaining a contract with a customer are capitalized and amortized to the extent that the Company expects to recover those costs. The Company satisfies performance obligations either over time or at a point in time as discussed in further detail below. Revenue is recognized at the time the related performance obligation is satisfied by transferring a promised good or performing a service. Sales and other taxes we collect, concurrent with revenue-producing activities, are excluded from revenue. 
 New vehicle and used vehicle retail 
 Revenue from the sale of new and used vehicles is recognized when the terms of the customer contract are satisfied which generally occurs with the signing of the sales contract and transfer of control of the vehicle to the customer. Payment is generally received at the time of sale or from a third-party financial institution within a short period of time following the sale of the vehicle. Amounts due from third-party financial institutions are reflected in contracts-in-transit or vehicle receivables within accounts receivable, net on our consolidated balance sheets. Costs associated with incidental items that are immaterial in the context of the contract are accrued at the time of sale. 
 Used vehicle wholesale 
 Proceeds from the sale of these vehicles are recognized in used vehicle revenue upon transfer of control to end-users at auction. 
 Sale of vehicle parts and accessories 
 The Company recognizes revenue upon transfer of control to the customer which occurs at a point in time. Payment is typically received when control of the parts and accessories transfers to the customer or within 30 days of such time. When the Company performs shipping and handling activities after the transfer of control to the customer (e.g., when control transfers 
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 prior to delivery), they are considered as fulfillment activities, and accordingly, the costs are accrued when the related revenue is recognized. 
 Vehicle repair and maintenance services 
 The Company provides vehicle repair and maintenance services to its customers pursuant to the terms and conditions included within the customer contract ("repair order"). Payments for services are typically received upon completion of the services or within 30 days following the completion of the services. Satisfaction of this performance obligation creates an asset with no alternative use for which an enforceable right to payment for performance to date exists within our contractual agreements. As such, the Company recognizes revenue over time as the Company satisfies its performance obligation. Additionally, the Company has determined that parts and labor are not individually distinct in the context of a repair order and therefore treated as a single performance obligation. Certain of these services are provided by the Dealerships segment to TCA customers in connection with claims related to TCA's vehicle protection products. Revenues recorded by the Dealerships segment and the associated claims expense recorded by the TCA segment are eliminated upon consolidation. 
 Finance and Insurance, net 
 Within the Dealerships segment, we receive commissions from third-party lending and insurance institutions for arranging customer financing and from the sale of vehicle service contracts, guaranteed asset protection debt cancellation, and other products, to end-users. In addition, we record commissions received from our TCA segment related to the sale of TCA's various vehicle protection F&I products. TCA offers extended vehicle service contracts, prepaid maintenance contracts, key replacement contracts, guaranteed asset protection contracts, paintless dent repair contracts, appearance protection contracts, tire and wheel, and lease wear and tear contracts. In addition, TCA provides the required contractual liability insurance if needed. The majority of these service contracts are sold through affiliated automobile dealerships. Finance and insurance commission revenue is recognized at the point of sale since our performance obligation is to arrange financing or facilitating the sale of a third party's products or services to our customers. 
 The dealerships commission arrangements with TCA, third-party lenders and insurance administrators consists of fixed ("upfront") and variable consideration. Variable consideration includes commission chargebacks ("chargebacks") in the event a contract is prepaid, defaulted upon, or terminated by the end-user. The Company reserves for future chargebacks based on historical chargeback experience and the termination provisions of the applicable contract, and these reserves are established in the same period that the related revenue is recognized. Commissions revenue and related reserves for future chargebacks in connection with the sale of TCA F&I products by our dealerships, are eliminated in consolidation. 
 We also participate in future profits pursuant to retrospective commission arrangements, which meet the definition of variable consideration, for certain insurance products associated with a third-party portfolio. The Company estimates the amount of variable consideration to be included in the transaction price based on historical payment trends and further constrains the variable consideration such that it is probable that a significant reversal of previously recognized revenue will not occur. In making these assessments the Company considers the likelihood and magnitude of a potential reversal of revenue and updates its assessment when uncertainties associated with the constraint are removed. 
 Within our TCA segment, all revenue, other than investment and interest income, is the result of contracts with customers. Each contract is considered to have a single performance obligation which extends over the life of the contract. Revenue is recognized ratably over the contract term based on earnings factors that align with the performance obligation. We capitalize costs to obtain customer contracts, employee sales commissions, and amortize those costs over the estimated life of the contract. Amortization of costs to obtain customer contracts is included in selling, general and administrative expenses. The portion of commissions that are paid to affiliated dealerships are eliminated upon consolidation. Unearned premium reserves are established to cover the unexpired portion of premiums written. 
 Deferred Revenue 
 We earn and recognize premium revenue related to the TCA segment over the period of the related service contract. Accordingly, we record deferred revenue and we ratably recognize revenue over the service contract period. 
 Unpaid Losses and Loss Adjustment Expense Reserve 
 Losses and loss adjustment expense reserves represent management's best estimate of the ultimate net cost of all reported and unreported losses incurred through December 31, 2025. The Company does not discount liabilities for unpaid losses or unpaid loss adjustment expense reserves. The reserves for unpaid losses and loss adjustment expenses are estimated using individual case-basis valuation and statistical analysis. Those estimates are subject to the effects of trends in loss severity and frequency. Although considerable variability is inherent in such estimates, management believes the reserves for losses and loss 
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 adjustment expenses are adequate. The estimates are continually reviewed and adjusted as necessary as experience develops or new information becomes known; such adjustments are included in income from operations. 
 Claims are counted when incidents that may result in a liability are reported and are based on policy coverage. 
 Internal Profit 
 Revenues and expenses associated with internal work performed by our parts and service departments on new and used vehicle inventory are eliminated in consolidation. The gross profit earned by our parts and service departments for internal work performed is included as a reduction of parts and service cost of sales on the accompanying consolidated statements of income upon the sale of the vehicle. The costs incurred by our new and used vehicle departments for work performed by our parts and service departments is included in either new vehicle cost of sales or used vehicle cost of sales on the accompanying consolidated statements of income, depending on the classification of the vehicle serviced. We eliminate the internal profit on vehicles that remain in inventory at period end. 
 Intersegment Eliminations 
 TCA's vehicle protection products are sold through affiliated dealerships and the revenue from the related commissions are included in finance and insurance, net revenues in the Dealerships segment before consolidation. The corresponding claims expense incurred and the amortization of deferred acquisition costs is recorded as a cost of sales in the TCA segment. The Dealerships segment also provides vehicle repair and maintenance services to TCA customers in connection with claims related to TCA's vehicle protection products. Revenues recorded by the Dealerships segment and the associated claims expense recorded by the TCA segment are eliminated upon consolidation. Intersegment revenues and profits from contracts and services are eliminated in consolidation. See Note 20 "Segment Information" for further details . 
 Share-Based Compensation 
 We record share-based compensation expense under the fair value method on a straight-line basis over the vesting period, unless the awards are subject to performance conditions, in which case we recognize the expense over the requisite service period of each separate vesting tranche. In addition, we account for the forfeiture of share-based awards as they occur. 
 Share Repurchases 
 Share repurchases may be made from time-to-time in open market transactions or through privately negotiated transactions under the authorization approved by the Board of Directors. Periodically, the Company may retire repurchased shares of common stock previously held by the Company as treasury stock. In accordance with our accounting policy, we allocate any excess share repurchase price over par value between additional paid-in capital, which is limited to amounts initially recorded for the same issue, and retained earnings. 
 During the years ended December 31, 2025, 2024 and 2023, the Company repurchased 432,752 , 830,297 and 1,316,167 shares and retired 432,752 , 830,297 and 1,370,371 shares of our common stock under our share repurchase program, respectively. On May 15, 2024, the Company announced that its Board of Directors approved an increase of $ 256.2 million in the Company's common share repurchase authorization to $ 400.0 million (the "New Share Repurchase Authorization"). As of December 31, 2025, the Company had $ 175.9 million remaining on its share repurchase authorization. The share repurchase authorization does not require the Company to repurchase any specific number of shares, and may be modified, suspended or terminated at any time without further notice. 
 Earnings per Common Share 
 Basic earnings per common share is computed by dividing net income by the weighted-average common shares outstanding during the period. Diluted earnings per common share is computed by dividing net income by the weighted-average common shares and common share equivalents outstanding during the period. The Company excluded 4,718 , 1,349 , and 2,086 restricted share units and 159 , 1,898 , and 60 performance share units issued under the Asbury Automotive Group, Inc. 2019 Equity and Incentive Compensation Plan from its computation of diluted earnings per share for the years ended December 31, 2025, 2024 and 2023, respectively, because they were anti-dilutive. For all periods presented, there were no adjustments to the numerator necessary to compute diluted earnings per share. 
 Advertising 
 We expense costs of advertising as incurred and production costs when the advertising initially takes place, net of certain advertising credits and other discounts received from certain automobile manufacturers. Advertising expense totaled $ 68.9 million, $ 61.8 million and $ 47.5 million for the years ended December 31, 2025, 2024 and 2023, which was net of earned 
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 advertising credits of $ 41.1 million, $ 40.7 million and $ 36.5 million, respectively, and is included in selling, general and administrative expense in the accompanying consolidated statements of income. 
 Income Taxes 
 We use the liability method to account for income taxes. Under this method, deferred tax assets and liabilities are recognized for the expected future tax consequences of differences between the carrying amounts of assets and liabilities and their respective tax basis using currently enacted tax rates. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period when the change is enacted. Deferred tax assets are reduced by a valuation allowance when it is more likely than not that some portion or all the deferred tax assets will not be realized. 
 Assets Held for Sale and Liabilities Associated with Assets Held for Sale 
 Certain amounts have been classified as assets held for sale as of December 31, 2025 and 2024 in the accompanying consolidated balance sheets. Assets and liabilities classified as held for sale include assets and liabilities associated with pending dealership disposals, real estate we are actively marketing to sell, and any liabilities, if applicable. Classification as held for sale begins on the date that we have met all of the criteria for classification as held for sale. 
 At the time of classifying assets as held for sale, we compare the carrying value of these assets to estimates of fair value to assess for impairment. We compare the carrying value to estimates of fair value utilizing the assistance of third-party broker opinions of value and third-party desktop appraisals to assist in our fair value estimates related to real estate properties. 
 Statements of Cash Flows 
 Borrowings and repayments of floor plan notes payable through our senior secured credit agreement with Bank of America, as administrative agent, and the other agents and lenders party thereto (as amended, the "2023 Senior Credit Facility") and all floor plan notes payable relating to used vehicles (together referred to as "Floor Plan Notes Payable—Non-Trade"), are classified as financing activities in the accompanying consolidated statements of cash flows, with borrowings reflected separately from repayments. The net change in floor plan notes payable to a lender affiliated with the manufacturer from which we purchase a particular new vehicle (collectively referred to as "Floor Plan Notes Payable—Trade") is classified as an operating activity in the accompanying consolidated statements of cash flows. Borrowings of floor plan notes payable associated with inventory acquired in connection with all acquisitions and repayments made in connection with all divestitures are classified as a financing activity. Cash flows related to floor plan notes payable included in operating activities differ from cash flows related to floor plan notes payable included in financing activities only to the extent that the former are payable to a lender affiliated with the manufacturer from which we purchased the related inventory, while the latter are payable to our 2023 Senior Credit Facility that includes lenders affiliated with the manufacturers and lenders not affiliated with the manufacturers from which we purchased the related inventory. The majority of our floor plan notes are payable to our 2023 Senior Credit Facility, with the exception of floor plan notes payable relating to the financing of new Ford and Lincoln vehicles. 
 Loaner vehicles account for a significant portion of other current assets. We acquire loaner vehicles either with available cash or through borrowings from either our manufacturer affiliated lenders or through our 2023 Senior Credit Facility. Loaner vehicles are initially used by our service department for a short period of time (typically 6 to 12 months) before we seek to sell them. Therefore, we classify the acquisition of loaner vehicles in other current assets and the borrowings and repayments of loaner vehicle notes payable in accounts payable and accrued liabilities in the accompanying consolidated statements of cash flows. Loaner vehicles are depreciated over the service period to their estimated value. At the end of the loaner service period, loaner vehicles are transferred from other current assets to used vehicle inventory. 
 Business and Credit Concentration Risk 
 Financial instruments, which potentially subject us to a concentration of credit risk, consist principally of cash deposits and investments. We maintain cash balances at financial institutions with strong credit ratings. Generally, amounts maintained with these financial institutions are in excess of FDIC insurance limits. In addition, we limit our exposure through the kind, quality and concentration of these investments. As of December 31, 2025, the Company had total investments of $ 415.3 million. 
 We have substantial debt service obligations. As of December 31, 2025, we had total debt of $ 3.59 billion, which excludes floor plan notes payable, debt issuance costs, and the debt premium on the 4.5 % Senior Notes (the " 4.5 % Notes") and 4.75 % Senior Notes (the " 4.75 % Notes") due 2028 and 2030, respectively. In addition, we and our subsidiaries have the ability to obtain additional debt from time to time to finance acquisitions, real property purchases, capital expenditures, share repurchases or for other purposes, although such borrowings are subject to the restrictions contained in the fourth amended and restated senior secured credit agreement with Bank of America, N.A. ("Bank of America"), as administrative agent, and the other lenders party thereto (the "2023 Senior Credit Facility"), the indentures governing our 4.5 % Notes, 4.625 % Notes, 4.75 % Notes 
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 and 5.0 % Notes (the "Indentures"), and our other debt instruments. We will have substantial debt service obligations, consisting of required cash payments of principal and interest, for the foreseeable future. 
 We are subject to operating and financial restrictions and covenants in certain of our leases and in our debt instruments, including the 2023 Senior Credit Facility, the Indentures, and the credit agreements covering our mortgage obligations. These agreements contain restrictions on, among other things, our ability to incur additional indebtedness, to create liens or other encumbrances, and to make certain payments (including dividends and repurchases of our shares and investments). These agreements may also require us to maintain compliance with certain financial and other ratios. Our failure to comply with any of these covenants in the future would constitute a default under the relevant agreement, which would, depending on the relevant agreement, (i) entitle the creditors under such agreement to terminate our ability to borrow under the relevant agreement and accelerate our obligations to repay outstanding borrowings; (ii) require us to apply our available cash to repay these borrowings; (iii) entitle the creditors under such agreement to foreclose on the property securing the relevant indebtedness; and/or (iv) prevent us from making debt service payments on certain of our other indebtedness, any of which would have a material adverse effect on our business, financial condition or results of operations. In many cases, a default under one of our debt or mortgage agreements could trigger cross-default provisions in one or more of our other debt or mortgages. 
 A number of our dealerships are located on properties that we lease. Each of the leases governing such properties has certain covenants with which we must comply. If we fail to comply with the covenants under our leases, the respective landlords could terminate the leases and seek damages from us. 
 Concentrations of credit risk with respect to contracts-in-transit and accounts receivable are limited primarily to automotive manufacturers and financial institutions. Credit risk arising from receivables with commercial customers is minimal due to the large number of customers comprising our customer base. 
 A significant portion of our new vehicle sales are derived from a limited number of automotive manufacturers. For the year ended December 31, 2025, manufacturers representing 5 % or more of our revenues from new vehicle sales were as follows: 
 Manufacturer (Vehicle Brands): % of Total
New Vehicle
Revenues 
 Toyota Motor Sales, U.S.A., Inc. (Toyota and Lexus) 30 % 
 Ford Motor Company (Ford and Lincoln) 14 % 
 
 American Honda Motor Co., Inc. (Honda and Acura) 10 % 
 
 Stellantis N.V. (Chrysler, Dodge, Jeep, Ram and Fiat) 8 % 
 General Motors Company (Chevrolet, Buick and GMC) 7 % 
 Mercedes-Benz USA, LLC (Mercedes-Benz, Smart and Sprinter) 7 % 
 Hyundai Motor America (Hyundai) 6 % 

 
 No other manufacturers individually accounted for more than 5 % of our total new vehicle revenue for the year ended December 31, 2025. 
 Recent Accounting Pronouncements 
 The Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2025-06, Intangibles – Goodwill and Other – Internal-Use Software , in September 2025, which is intended to modernize the internal-use software guidance to adapt to the agile (i.e. iterative and flexible) basis predominantly employed to develop software today. The new standard amends the recognition threshold for capitalizing internal-use software costs and clarifies the presentation and disclosure requirements associated with internal-use software. The guidance is effective for interim and annual periods beginning after December 15, 2027 and may be applied prospectively, retrospectively or on a modified prospective basis. We are evaluating the impact of this new guidance on our consolidated financial statements. 
 In July 2025, the FASB issued ASU 2025-05, Measurement of Credit Losses for Accounts Receivable and Contract Assets. The standard provides a practical expedient related to the estimation of expected credit losses for current accounts receivable and current contract assets. The practical expedient assumes that conditions as of the balance sheet date do not change for the remaining life of the accounts receivable and contract assets when forecasting estimated credit losses. An entity is required to disclose whether it has applied the practical expedient. The guidance is effective for interim and annual periods beginning after 
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 December 15, 2025 and should be applied prospectively. Early adoption is permitted. We are evaluating the impact of this new guidance on our consolidated financial statements. 
 The FASB issued ASU 2024-03, Disaggregation – Income Statement Expenses , in November 2024, which requires additional disclosure of the nature of expenses included in the income statement. The new standard requires disclosures about specific types of expenses included in the expense captions presented on the face of the income statement as well as disclosures about selling expenses. The guidance is effective for annual periods beginning after December 15, 2026 and should be applied prospectively with the option of retrospective application. We are evaluating the impact of this new guidance on our consolidated financial statements. 
 In December 2023, the FASB issued final guidance in ASU 2023-09, Improvements to Income Tax Disclosures , which primarily expands the disclosures related to the effective tax rate reconciliation and income taxes paid. The guidance is effective for annual periods beginning after December 15, 2024 and should be applied prospectively with the option of retrospective application. We adopted this new guidance for the year ended December 31, 2025 following the retrospective application. See Note 16, "Income Taxes". 
 
 2. REVENUE RECOGNITION 
 Disaggregation of Revenue 
 Revenue from contracts with customers consists of the following: 
 For the Year Ended December 31, 
 2025 2024 2023 
 (In millions) 
 Revenue: 
 New vehicle $ 9,496.2 $ 8,849.7 $ 7,630.7 
 Used vehicle retail 4,549.6 4,605.9 4,017.5 
 Used vehicle wholesale 675.7 612.3 396.7 
 New and used vehicle 14,721.5 14,067.9 12,045.0 
 Sale of vehicle parts and accessories 511.5 516.2 496.3 
 Vehicle repair and maintenance services 1,995.3 1,838.5 1,585.3 
 Parts and service 2,506.8 2,354.7 2,081.5 
 Finance and insurance, net 770.6 766.0 676.2 
 Total revenue $ 17,999.0 $ 17,188.6 $ 14,802.7 

 Contract Assets 
 Changes in contract assets during the period are reflected in the table below. Contract assets related to vehicle repair and maintenance services are transferred to receivables when a repair order is completed and invoiced to the customer. Certain incremental sales commissions payable to obtain an F&I revenue contract with a customer have been capitalized and are amortized using the same pattern of recognition applicable to the associated F&I revenue contract. 
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 Vehicle Repair and Maintenance Services Finance and Insurance, net Deferred Sales Commissions Total 
 (In millions) 
 Contract Assets, December 31, 2023 $ 20.5 $ 13.8 $ 68.4 $ 102.7 
 Transferred to receivables from contract assets recognized at the beginning of the period ( 20.5 ) ( 13.8 ) — ( 34.3 ) 
 Amortization of costs incurred to obtain a contract with a customer — — ( 19.5 ) ( 19.5 ) 
 Costs incurred to obtain a contract with a customer — — 41.2 41.2 
 Increases related to revenue recognized, inclusive of adjustments to constraint, during the period 17.8 12.8 — 30.5 
 Contract Assets, December 31, 2024 $ 17.8 $ 12.8 $ 90.1 $ 120.7 
 Transferred to receivables from contract assets recognized at the beginning of the period ( 17.8 ) ( 12.8 ) — ( 30.6 ) 
 Amortization of costs incurred to obtain a contract with a customer — — ( 29.3 ) ( 29.3 ) 
 Costs incurred to obtain a contract with a customer — — 52.0 52.0 
 Increases related to revenue recognized, inclusive of adjustments to constraint, during the period 22.9 11.8 — 34.7 
 Contract Assets, December 31, 2025 $ 22.9 $ 11.8 $ 112.8 $ 147.5 
 
 Contract Assets (current), December 31, 2025 $ 22.9 $ 11.8 $ 30.7 $ 65.4 
 Contract Assets (long-term), December 31, 2025 $ — $ — $ 82.1 $ 82.1 

 Deferred Revenue 
 The consolidated balance sheet reflects $ 828.2 million and $ 766.0 million in deferred revenue as of December 31, 2025 and 2024, respectively. Approximately $ 255.0 million and $ 239.3 million of deferred revenue at December 31, 2024 and 2023, was recorded in finance and insurance, net revenue in the consolidated statements of income for the years ended December 31, 2025 and 2024, respectively. 
 
 3. ACQUISITIONS AND DIVESTITURES 
 Herb Chambers Acquisition 
 On July 21, 2025, we completed the acquisition of The Herb Chambers Companies (collectively, the "Businesses"). The Herb Chambers acquisition continues Asbury's geographic expansion into the northeast region of the United States. 
 As a result of the Herb Chambers acquisition, we acquired substantially all of the assets including the real property related thereto, for a total preliminary purchase price of approximately $ 1.76 billion, which includes $ 292.0 million of new vehicle floor plan financing, $ 300.0 million of used vehicle financing, $ 623.3 million of borrowings under a revolving credit facility, and $ 546.5 million of borrowings under a real estate facility. The Businesses comprise 33 dealerships, 52 franchises and three collision centers. The Businesses are included in our Dealerships segment. 
 The sources of the preliminary purchase consideration are as follows: 
 (In millions) 
 New vehicle floor plan facility $ 292.0 
 Used vehicle floor plan facility 300.0 
 Revolving credit facility 623.3 
 Real estate facility 546.5 
 Preliminary purchase price $ 1,761.8 

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 Under the acquisition method of accounting, the tangible and intangible assets acquired and liabilities assumed are recorded at their estimated fair value based on information currently available. The following table summarizes the amounts recorded based on preliminary estimates of fair value: 
 
 Summary of Assets Acquired and Liabilities Assumed 
 (In millions) 
 Assets 
 Inventories, net $ 372.1 
 Other current assets 56.6 
 Total current assets 428.7 
 Property and equipment, net 605.5 
 Goodwill 341.7 
 Intangible franchise rights 428.5 
 Operating lease right-of-use assets 39.8 
 Total assets acquired $ 1,844.2 
 Liabilities 
 Operating lease liabilities 39.8 
 Other liabilities 42.6 
 Total liabilities assumed 82.4 
 Net assets acquired $ 1,761.8 

 The estimated fair values of the assets acquired and liabilities assumed and the related preliminary acquisition accounting are based on management’s estimates and assumptions, as well as other information compiled by management, including the books and records of the Businesses. The effects of measurement period adjustments on our consolidated statement of income for the year ended December 31, 2025 were not material. Furthermore, we recorded a $ 34.7 million measurement period adjustment to reflect the fair value of franchise rights acquired, with a corresponding increase to goodwill, within our consolidated balance sheets during the three months ended December 31, 2025. We believe that the information gathered to date provides a reasonable basis for estimating the fair values of assets acquired and liabilities assumed. We continue to analyze the estimated values of all assets acquired and liabilities assumed including, among other things, finalizing third-party valuations; therefore, the allocation of the purchase price remains preliminary and subject to revision during the measurement period, not to exceed one year from the acquisition date. 
 Approximately $ 428.5 million of the purchase price was assigned to the indefinite lived franchise rights intangible assets related to the dealer agreements applicable to each new vehicle dealership. In addition, goodwill of $ 341.7 million was recognized and is primarily attributable to the anticipated synergies that Asbury expects to derive from the Herb Chambers acquisition as well as the acquired assembled workforce of the Businesses. 
 The Company recorded $ 16.5 million of acquisition related costs during the year ended December 31, 2025. These costs are included in selling, general, and administrative expenses in the consolidated statements of income. 
 Goodwill and manufacturer franchise rights associated with our Dealerships segment acquisitions are deductible for federal and state income tax purposes ratably over a 15-year period. 
 The Company's consolidated statements of income included revenue and net income attributable to the Businesses from July 21, 2025 through December 31, 2025 of $ 1.16 billion and $ 35.4 million, respectively. 
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 The following represents the unaudited pro forma information as if the Herb Chambers acquisition had been included in the consolidated results of the Company since January 1, 2024: 
 
 For the Year Ended December 31, 
 2025 2024 
 (In millions) 
 (Unaudited) 
 Pro forma revenue $ 20,330.9 $ 19,865.3 
 Pro forma net income $ 479.4 $ 418.3 

 The above pro forma financial information adjusts the revenue and net income related to the Herb Chambers acquisition primarily for depreciation, rent and interest expense, assuming that the fair value adjustments and indebtedness incurred in connection with the Herb Chambers acquisition had occurred on January 1, 2024. They have also been adjusted to reflect the $ 16.5 million of acquisition related costs during the year ended December 31, 2025, as having occurred on January 1, 2024. The pro forma information also assumes that the July 2025 divestiture of two Lexus and two General Motors dealerships occurred on January 1, 2024, due to manufacturer requirements upon the consummation of the Herb Chambers acquisition. The pro forma net income for the year ended December 31, 2025 and 2024 includes $ 141.0 million and $ 149.5 million, respectively, of asset impairments recorded by the Company. 
 Koons Acquisition 
 On December 11, 2023, we completed the acquisition of the Jim Koons Dealerships. The results of the Jim Koons Dealerships have been included in our consolidated financial statements since that date. The Koons acquisition diversifies Asbury's geographic mix, with expansion in the greater Washington-Baltimore region of the United States. 
 As a result of the Koons acquisition, we acquired 20 new vehicle dealerships, six collision centers and the real property related thereto, for a total purchase price of approximately $ 1.50 billion, which includes $ 256.1 million of new vehicle floor plan financing and $ 100.9 million of assets held for sale related to Koons Lexus of Wilmington. The purchase price was paid in cash. 
 The sources of the purchase consideration are as follows: 
 (In millions) 
 Cash $ 941.3 
 New vehicle floor plan facility 256.1 
 Used vehicle floor plan facility 307.1 
 Purchase price $ 1,504.5 

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 Under the acquisition method of accounting, the tangible and intangible assets acquired and liabilities assumed are recorded at their estimated fair value based on information currently available. The following table summarizes the amounts recorded based on final estimates of fair value: 
 
 Summary of Assets Acquired and Liabilities Assumed 
 (In millions) 
 Assets 
 Inventories, net $ 310.6 
 Other current assets 11.8 
 Assets held for sale 100.9 
 Total current assets 423.3 
 Property and equipment, net 417.6 
 Goodwill 272.4 
 Intangible franchise rights 401.0 
 Operating lease right-of-use assets 11.2 
 Total assets acquired $ 1,525.5 
 Liabilities 
 Operating lease liabilities $ 11.2 
 Other liabilities 9.7 
 Total liabilities assumed 20.9 
 Net assets acquired $ 1,504.5 

 The acquisition accounting is based upon the Company’s estimates of fair value. The estimated fair values of the assets acquired and liabilities assumed and the related acquisition accounting are based on management’s estimates and assumptions, as well as other information compiled by management, including the books and records of Koons. Measurement period adjustments recorded during the year ended December 31, 2024 and their related effects on our consolidated statements of income were not material. Furthermore, we recorded a $ 26.7 million measurement period adjustment to reflect the fair value of franchise rights acquired, with a corresponding increase to goodwill, within our consolidated balance sheets during the year ended December 31, 2024. 
 Approximately $ 401.0 million of the purchase price was assigned to the indefinite lived franchise rights intangible assets related to the dealer agreements applicable to each new vehicle dealership. In addition, goodwill of $ 272.4 million was recognized and is attributable to the anticipated synergies that Asbury expects to derive from the Koons acquisition as well as the acquired assembled workforce of the Koons dealerships. 
 The Company recorded $ 4.1 million of acquisition related costs during the year ended December 31, 2023. These costs are included in selling, general and administrative in the consolidated statements of income. The Company did not incur acquisition related costs during the year ended December 31, 2024. 
 Goodwill and manufacturer franchise rights associated with our Dealerships segment acquisitions are deductible for federal and state income tax purposes ratably over a 15-year period. 
 The Company's consolidated statements of income for the year ended December 31, 2024, included revenue and net income attributable to the Jim Koons Dealerships of $ 2,805.5 million and $ 86.9 million, respectively. 
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 The following represents the unaudited pro forma information as if the Koons acquisition had been included in the consolidated results of the Company since January 1, 2022: 
 For the Year Ended December 31, 
 2023 2022 
 (In millions) 
 (Unaudited) 
 Pro forma revenue $ 17,540.4 $ 18,516.1 
 Pro forma net income $ 660.8 $ 1,092.9 

 The above pro forma financial information adjusts the revenue and net income related to the Koons acquisition primarily for (1) depreciation and interest expense assuming that the fair value adjustments and indebtedness incurred in connection with the Koons acquisition had occurred on January 1, 2022 and (2) the exclusion of Koons Lexus of Wilmington, which is classified as assets held for sale as of December 31, 2023. The pro forma net income for the year ended December 31, 2023 includes $ 117.2 million of asset impairments recorded by the Company during the fourth quarter of 2023. 
 Other Acquisitions and Divestitures 
 There were no other acquisitions during the years ended December 31, 2025, 2024 and 2023. 
 During the year ended December 31, 2025, we sold the following franchises: 
 
 Manufacturer Franchises Locations States 
 Toyota 3 3 California; Maryland 
 Nissan 1 1 Colorado 
 Chrysler Jeep Dodge Ram 12 4 Colorado; Utah 
 Volvo 1 1 South Carolina 
 Lexus 2 2 Utah 
 Chevrolet Buick GMC 4 3 Utah; Indiana 
 Ford 1 1 Utah 

 The Company recorded a pre-tax gain totaling $ 80.2 million which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net. 
 During the year ended December 31, 2024, we sold the following franchises: 
 
 Manufacturer Franchises Locations States 
 Nissan 2 2 Colorado; Georgia 
 Lexus 1 1 Delaware 
 Chevrolet 1 1 Georgia 
 Honda 1 1 Washington 

 The Company recorded a pre-tax gain totaling $ 8.6 million which is presented in our accompanying consolidated statements of income as a gain on dealership divestitures, net. 
 During the year ended December 31, 2023, we sold one franchise ( one dealership location) in Austin, Texas. The Company recorded a pre-tax gain totaling $ 13.5 million. 
 
 
 
 
 
 
 
 
 
 
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 4. ACCOUNTS RECEIVABLE 
 Accounts receivable consisted of the following: 
 
 As of December 31, 
 2025 2024 
 (In millions) 
 Vehicle receivables $ 84.6 $ 85.0 
 Manufacturer receivables 113.9 101.4 
 Other receivables 99.5 102.3 
 Total accounts receivable 298.0 288.6 
 Less—Allowance for credit losses ( 3.4 ) ( 3.2 ) 
 Accounts receivable, net $ 294.6 $ 285.5 

 
 5. INVENTORIES 
 Inventories consisted of the following: 
 
 As of December 31, 
 2025 2024 
 (In millions) 
 New vehicles $ 1,582.6 $ 1,450.6 
 Used vehicles 399.9 382.1 
 Parts and accessories 153.3 146.0 
 Total inventories, net (a) $ 2,135.8 $ 1,978.8 

 ____________________________ 
 (a) Inventories, net as of December 31, 2025 and 2024, excluded $ 96.5 million and $ 58.7 million classified as assets held for sale, respectively. 
 The lower of cost and net realizable value reserves reduced total inventory cost by $ 9.0 million and $ 9.7 million, respectively, as of December 31, 2025 and 2024. As of December 31, 2025 and 2024, certain automobile manufacturer incentives reduced new vehicle inventory cost by $ 16.2 million and $ 13.8 million, respectively, and reduced new vehicle cost of sales for the years ended December 31, 2025, 2024 and 2023 by $ 127.4 million, $ 113.4 million and $ 94.1 million, respectively. 
 
 6. ASSETS HELD FOR SALE 
 Assets and liabilities classified as held for sale include assets and liabilities associated with pending dealership disposals, and real estate that we are actively marketing to sell. 
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 A summary of assets held for sale and liabilities associated with assets held for sale is as follows: 
 
 As of December 31, 
 2025 2024 
 (In millions) 
 Assets: 
 
 
 Inventory $ 96.5 $ 58.7 
 Loaners, net 15.4 1.5 
 
 Property and equipment, net 117.3 89.1 
 Operating lease right-of-use assets 1.8 1.9 
 Goodwill 33.3 — 
 Franchise rights 4.5 23.1 
 Total assets held for sale $ 268.9 $ 174.4 
 Liabilities: 
 
 
 
 
 Current maturities of operating leases 0.4 0.2 
 
 Operating lease liabilities 1.5 1.7 
 Total liabilities associated with assets held for sale 1.8 1.9 
 Net assets held for sale $ 267.0 $ 172.4 

 As of December 31, 2025, assets held for sale consisted of 15 franchises ( 11 dealership locations) in addition to two real estate properties. 
 In March 2025, the Company recognized a $ 14.3 million pre-tax non-cash franchise rights impairment charge in connection with five dealerships that were classified as assets held for sale in March 2025. In September 2025, the Company recognized an $ 11.7 million pre-tax non-cash franchise rights impairment charge in connection with a dealership that met the assets held for sale criteria in October 2025. The quantitative assessment for each disposal group included a comparison of the estimated fair value to the carrying value of the disposal group less costs to sell. The Company determined the estimated fair value of each disposal group based on estimated sales proceeds less costs to sell. These franchise rights impairment charges are reflected in asset impairments in our consolidated statement of income for the year ended December 31, 2025. 
 As of December 31, 2024, assets held for sale consisted of seven franchises ( six dealership locations) in addition to one real estate property. 
 During the year ended December 31, 2025, the Company sold 24 franchises ( 15 dealership locations) for a pre-tax gain totaling $ 80.2 million. 
 During the year ended December 31, 2024, the Company sold five franchises ( five dealership locations) for a pre-tax gain totaling $ 8.6 million. 
 
 7. OTHER CURRENT ASSETS 
 Other current assets consisted of the following: 
 
 As of December 31, 
 2025 2024 
 (In millions) 
 Loaner vehicles $ 280.5 $ 235.7 
 Contract assets (see Note 2) 65.4 54.7 
 Prepaid expenses 30.8 39.8 
 Prepaid taxes 6.2 9.7 
 Notes receivable 3.8 4.8 
 Deposits 10.4 3.4 
 Other 3.8 3.5 
 Other current assets $ 400.9 $ 351.7 

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 8. INVESTMENTS 
 Our investment portfolio is primarily funded by product premiums from the sale of our TCA F&I products. The amortized cost, gross unrealized gains and losses and estimated fair values of debt securities available-for-sale measured at net asset value are as follows: 
 
 
 
 As of December 31, 2025 
 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 
 (In millions) 
 Short-term investments $ 0.5 $ — $ — $ 0.5 
 U.S. Treasuries 2.6 — — 2.6 
 Municipal 4.9 0.1 — 5.0 
 Corporate 163.3 3.8 — 167.0 
 Mortgage and other asset-backed securities 237.1 3.4 ( 0.3 ) 240.1 
 
 
 
 
 Total investments $ 408.4 $ 7.3 $ ( 0.4 ) $ 415.3 

 
 
 
 
 
 As of December 31, 2024 
 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value 
 (In millions) 
 Short-term investments $ 14.4 $ — $ — $ 14.4 
 U.S. Treasuries 2.6 — — 2.6 
 Municipal 10.6 0.1 ( 0.1 ) 10.6 
 Corporate 152.0 0.8 ( 0.9 ) 151.9 
 Mortgage and other asset-backed securities 170.1 0.6 ( 1.7 ) 169.1 
 
 
 
 
 Total investments $ 349.8 $ 1.6 $ ( 2.7 ) $ 348.6 

 As of December 31, 2025 and 2024, the Company had $ 3.1 million and $ 2.8 million of accrued interest receivable, respectively, which is included in other current assets on the consolidated balance sheets. The Company does not consider accrued interest receivable in the carrying amount of financial assets held at amortized cost basis or in the allowance for credit losses. 
 A summary of amortized costs and fair value of investments by time to maturity, is as follows: 
 
 As of December 31, 2025 
 Amortized Cost Fair Value 
 (In millions) 
 Due in 1 year or less $ 0.5 $ 0.5 
 Due in 1-5 years 114.7 117.1 
 Due in 6-10 years 52.4 53.8 
 Due after 10 years 3.6 3.7 
 Total by maturity 171.3 175.2 
 Mortgage and other asset-backed securities 237.1 240.1 
 
 
 
 Total investment securities $ 408.4 $ 415.3 

 During the year ended December 31, 2025, we recorded $ 1.0 million gross gains and $ 0.2 million gross losses realized related to the sales of available-for-sale debt securities carried at fair value. 
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 During the year ended December 31, 2024, we recorded $ 1.2 million gross gains and $ 0.6 million gross losses realized related to the sales of available-for-sale debt securities carried at fair value. 
 During the year ended December 31, 2023, we recorded $ 0.5 million gross gains and $ 1.5 million gross losses realized related to the sales of available-for-sale debt securities carried at fair value. During the year ended December 31, 2023, we recorded $ 3.7 million gross gains and $ 0.9 million gross losses realized related to the sales of equity securities carried at fair value. 
 The following tables summarize the amount of unrealized losses, defined as the amount by which the amortized cost exceeds fair value, and the related fair value of investments with unrealized losses. The investments were segregated into two categories: those that have been in a continuous unrealized loss position for less than 12 months and those that have been in a continuous unrealized loss position of 12 or more months. The reference point for determining how long an investment was in an unrealized loss position was December 31, 2025. 
 
 As of December 31, 2025 
 Less than 12 Months Greater than 12 Months Total 
 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses 
 (In millions) 
 Short-term investments $ — $ — $ 0.5 $ — $ 0.5 $ — 
 U.S. Treasuries — — 0.8 — 0.8 — 
 
 Corporate 4.8 — — — 4.8 — 
 Mortgage and other asset-backed securities 28.8 ( 0.1 ) 18.8 ( 0.2 ) 47.6 ( 0.3 ) 
 Total debt securities $ 33.5 $ ( 0.1 ) $ 20.2 $ ( 0.2 ) $ 53.7 $ ( 0.3 ) 

 
 
 
 As of December 31, 2024 
 Less than 12 Months Greater than 12 Months Total 
 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses 
 (In millions) 
 Short-term investments $ 0.3 $ — $ 3.9 $ — $ 4.1 $ — 
 U.S. Treasuries 1.1 — 1.4 — 2.5 — 
 Municipal 3.4 ( 0.1 ) 1.6 — 4.9 ( 0.1 ) 
 Corporate 64.3 ( 0.5 ) 26.6 ( 0.4 ) 90.9 ( 0.9 ) 
 Mortgage and other asset-backed securities 78.5 ( 1.0 ) 26.4 ( 0.7 ) 104.9 ( 1.7 ) 
 Total debt securities $ 147.5 $ ( 1.6 ) $ 59.8 $ ( 1.2 ) $ 207.3 $ ( 2.7 ) 

 The credit loss model applicable to the available-for-sale debt securities, requires the recognition of credit losses through an allowance account, which are recognized once securities become impaired. The Company reviews the investment securities portfolio at the security level on a quarterly basis for potential credit losses, which takes into consideration numerous factors as described in Note 1. The decline in fair value identified in the tables above are a result of widening market spreads and not a result of credit quality. Additionally, the Company has determined it has both the intent and ability to hold these investments until the market price recovers or until maturity and does not believe it will be required to sell the securities before maturity. Accordingly, no credit losses were recognized on these securities during the years ended December 31, 2025, 2024, and 2023 . 
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 9. PROPERTY AND EQUIPMENT, NET 
 Property and equipment, net consisted of the following: 
 
 As of December 31, 
 2025 2024 
 (In millions) 
 Land $ 1,189.3 $ 1,021.7 
 Buildings and leasehold improvements 1,827.2 1,544.3 
 Machinery and equipment 210.3 188.4 
 Furniture and fixtures 107.1 105.5 
 Company vehicles 19.2 17.3 
 Construction in progress 193.9 142.6 
 Gross property and equipment 3,546.9 3,019.7 
 Less—Accumulated depreciation ( 476.5 ) ( 469.1 ) 
 Property and equipment, net (a) $ 3,070.4 $ 2,550.7 

 ______________________________ 
 (a) Property and equipment, net as of December 31, 2025 and 2024, excluded $ 117.3 million and $ 89.1 million, respectively classified as assets held for sale. In addition, property and equipment, net as of December 31, 2025 and 2024 included finance leases of $ 8.3 million and $ 8.4 million, respectively. 
 Depreciation expense was $ 82.4 million, $ 75.0 million, and $ 67.7 million for the years ended December 31, 2025, 2024, and 2023, respectively. 
 
 10. GOODWILL AND INTANGIBLE FRANCHISE RIGHTS 
 Our acquisitions have resulted in the recording of goodwill and intangible franchise rights. Goodwill is an asset representing operational synergies and future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. Intangible franchise rights is an asset representing our rights under franchise agreements with vehicle manufacturers. 
 In connection with the Herb Chambers acquisition, we recorded goodwill of $ 341.7 million and franchise rights of $ 428.5 million. Goodwill related to the Herb Chambers acquisition was allocated to the Dealerships segment. 
 The changes in goodwill and intangible franchise rights for the years ended December 31, 2025 and 2024 are as follows: 
 
 Goodwill 
 Dealerships TCA Total 
 (In millions) 
 Balance as of December 31, 2023 (a) $ 1,472.4 $ 536.6 $ 2,009.0 
 Reclassified from assets held for sale 29.6 — 29.6 
 Acquisitions 40.9 — 40.9 
 Divestitures ( 30.1 ) — ( 30.1 ) 
 Impairments ( 1.3 ) — ( 1.3 ) 
 Reclassified to assets held for sale ( 3.5 ) — ( 3.5 ) 
 Balance as of December 31, 2024 (a) $ 1,508.1 $ 536.6 $ 2,044.7 
 
 Acquisitions 341.7 — 341.7 
 Divestitures ( 71.8 ) — ( 71.8 ) 
 
 Reclassified to assets held for sale ( 33.3 ) — ( 33.3 ) 
 Balance as of December 31, 2025 (a) $ 1,744.7 $ 536.6 $ 2,281.3 

 _____________________________ 
 (a) Net of accumulated impairment losses of $ 552.6 million recorded prior to the year ended December 31, 2023. 
 
 
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 Intangible Franchise Rights 
 (In millions) 
 Balance as of December 31, 2023 $ 2,095.8 
 Reclassified from assets held for sale 71.9 
 Acquisitions - measurement-period adjustments ( 26.7 ) 
 Divestitures ( 74.6 ) 
 Impairments ( 148.2 ) 
 Reclassified to assets held for sale ( 6.5 ) 
 Balance as of December 31, 2024 $ 1,911.7 
 Reclassified from assets held for sale 23.1 
 Acquisitions 428.5 
 Divestitures ( 120.2 ) 
 Impairments ( 141.0 ) 
 Reclassified to assets held for sale ( 4.5 ) 
 Balance as of December 31, 2025 $ 2,097.6 

 Our quantitative impairment tests for franchise rights include a comparison of the estimated fair value to the carrying value of each franchise right asset. The Company estimates fair value by using a discounted cash flow model (income approach) based on market participant assumptions related to the cash flows directly attributable to the franchise. These assumptions include year-over-year and terminal growth rates, weighted average cost of capital and future EBITDA margins. 
 We performed a quantitative impairment test for certain underperforming stores as of our annual impairment testing date, October 1, 2025. The results of the quantitative impairment testing identified that the carrying values of certain of our franchise rights intangible assets exceeded their fair value by $ 115.0 million and the related impairment charge was recorded during the three months ended December 31, 2025. Taking into account the $ 26.0 million of franchise rights impairments discussed in Note 6, Assets Held for Sale, in total, we recognized a $ 141.0 million pre-tax non-cash impairment charge related to our franchise rights intangible assets during the year ended December 31, 2025. 
 
 
 Based on the underperformance of certain stores, we performed quantitative impairment tests in the second quarter of 2024 and as of our annual impairment testing date, October 1, 2024. The results of the quantitative impairment testing identified that the carrying values of certain of our franchise rights intangible assets exceeded their fair value by $ 134.1 million and $ 14.1 million and the related impairment charges were recorded during the three months ended June 30, 2024 and December 31, 2024, respectively. In total, we recognized a $ 148.2 million pre-tax non-cash impairment charge related to our franchise rights intangible assets during the year ended December 31, 2024. 
 We also performed qualitative impairment assessments on the remaining franchise rights as of October 1, 2025 and 2024, respectively. The results of our qualitative impairment assessments on the remaining franchise rights indicated that the fair values of the franchise rights related to those dealerships more likely than not exceeded their carrying values. 
 We performed qualitative impairment tests of goodwill for all reporting units as of October 1, 2025. The results of our qualitative goodwill impairment assessments for all reporting units indicated that the fair values of the reporting units more likely than not exceeded their carrying values. 
 Additionally, in connection with changes in reporting units in our Dealerships segment, we performed qualitative and quantitative impairment tests of goodwill for the affected reporting units as of October 1, 2024, both before and after the change in reporting units. Lastly, we performed an interim quantitative impairment test of goodwill for two reporting units in the second quarter of 2024. 
 The quantitative impairment tests of goodwill, related to certain reporting units, as of October 1, 2024, and during the second quarter of 2024 included a comparison of the estimated fair value to the carrying value of the reporting unit. The Company estimates fair value by using a discounted cash flow model (income approach) based on market participant assumptions. These assumptions include year-over-year and terminal growth rates, weighted average cost of capital, future gross margins, and future selling, general and administrative expenses. The results of our quantitative goodwill impairment tests during the second quarter of 2024 and as of October 1, 2024, indicated that the fair value of these reporting units exceeded their carrying values. We performed qualitative impairment assessments on the remaining reporting units as of October 1, 2024. The results of our qualitative impairment assessments of goodwill related to the remaining reporting units indicated that the fair values of the reporting units more likely than not exceeded their carrying values. 
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 11. FLOOR PLAN NOTES PAYABLE—TRADE 
 We consider floor plan notes payable to a party that is affiliated with the entity from which we purchase our new vehicle inventory as floor plan notes payable—trade on our consolidated balance sheets. Floor plan notes payable—trade, net consisted of the following: 
 As of December 31, 
 2025 2024 
 (In millions) 
 Floor plan notes payable—trade $ 344.0 $ 350.9 
 Floor plan notes payable offset account ( 1.0 ) ( 1.0 ) 
 Total floor plan notes payable—trade, net $ 343.1 $ 349.9 

 
 We have a floor plan facility with Ford Motor Credit Company ("Ford Credit") to purchase new Ford and Lincoln vehicle inventory. Our floor plan facility with Ford Credit was amended in July 2020 and can be terminated by either the Company or Ford Credit with a 30-day notice period. 
 We have established a floor plan notes payable offset account with Ford Credit that allows us to transfer cash to the account as an offset to our outstanding floor plan notes payable—trade. These transfers reduce the amount of outstanding new vehicle floor plan notes payable that would otherwise accrue interest, while retaining the ability to transfer amounts from the offset account into our operating cash accounts within one to two days. As a result of using our floor plan offset account, we experienced a reduction in floor plan interest expense in our consolidated statements of income. The representations and covenants contained in the agreement governing our floor plan facility with Ford Credit are customary for financing transactions of this nature. Further, the agreement governing our floor plan facility with Ford Credit also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, the Company could be required to immediately repay all outstanding amounts under our floor plan facility with Ford Credit. 
 
 12. FLOOR PLAN NOTES PAYABLE—NON-TRADE 
 We consider floor plan notes payable to a party that is not affiliated with the entity from which we purchase our new vehicle inventory as floor plan notes payable—non-trade on our consolidated balance sheets. Floor plan notes payable—non-trade, net consisted of the following: 
 As of December 31, 
 2025 2024 
 (In millions) 
 Floor plan notes payable—new non-trade $ 1,509.6 $ 1,359.8 
 Floor plan notes payable—used non-trade 325.0 100.7 
 Floor plan notes payable offset account ( 150.7 ) ( 115.7 ) 
 Total floor plan notes payable—non-trade, net $ 1,683.9 $ 1,344.8 

 
 2023 Senior Credit Facility 
 On October 20, 2023, the Company and certain of its subsidiaries entered into a fourth amended and restated credit agreement with Bank of America, N.A. ("Bank of America"), as administrative agent, and the other lenders party thereto (the "2023 Senior Credit Facility"). The 2023 Senior Credit Facility amended and restated the Company’s pre-existing third amended and restated credit agreement, dated as of September 25, 2019, among the Company, certain of its subsidiaries, Bank of America, as administrative agent, and the other lenders party thereto. 
 On April 9, 2025, the Company obtained an amendment (the “Amendment”) to the 2023 Senior Credit Facility, by and among the Company, as a borrower, certain of its subsidiaries, as vehicle borrowers, Bank of America, N.A., ("Bank of America") as administrative agent, and the other lenders party thereto. 
 The Amendment, among other things, provided for the following, subject to satisfaction of certain other customary conditions in each case: 
 
 
 • an increase of the aggregate commitments under the revolving credit facility, from $ 500.0 million to $ 925.0 million; and 
 • an increase of the aggregate commitments under the new vehicle floor plan facility, from $ 1.93 billion to $ 2.25 billion. 
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 Aggregate commitments of $ 375.0 million under the used vehicle revolving floorplan facility did not change as a result of the Amendment . 
 
 
 The increases under the Amendment were effective concurrently with the consummation of the Herb Chambers acquisition, which occurred on July 21, 2025. 
 Subject to compliance with certain conditions, the 2023 Senior Credit Facility provides that we have the ability, at our option and subject to the receipt of additional commitments from existing or new lenders, to increase the size of the facilities by up to $ 750.0 million in the aggregate. 
 We have the ability to convert a portion of our availability under the Revolving Credit Facility to the New Vehicle Floor Plan Facility or the Used Vehicle Floor Plan Facility. The maximum amount we are allowed to convert is determined based on our aggregate revolving commitment under the Revolving Credit Facility, less $ 50.0 million. In addition, we are able to convert any amounts moved to the New Vehicle Floor Plan Facility or Used Vehicle Floor Plan Facility back to the Revolving Credit Facility. 
 In connection with the New Vehicle Floor Plan Facility, we continue to maintain an offset account with Bank of America that allows us to transfer cash as an offset to floor plan notes payable. These transfers reduce the amount of outstanding new vehicle floor plan notes payable that would otherwise accrue interest, while retaining the ability to transfer amounts from the offset account into our operating cash accounts within one to two days. As a result of the use of our floor plan offset account, we experienced a reduction in floor plan interest expense in our consolidated statements of income. 
 Borrowings outstanding under the 2023 Senior Credit Facility bear interest, at the option of the Company, based on Daily Simple SOFR (as defined in the 2023 Senior Credit Facility) or the Base Rate, in each case plus an Applicable Rate. The Base Rate is the highest of (i) the Federal Funds Rate (as defined in the 2023 Senior Credit Agreement) plus 0.50 %, (ii) the Bank of America prime rate, and (iii) Daily Simple SOFR plus 1.00 % and (iv) 1.00 %. Applicable Rate means with respect to the Revolving Credit Facility, a range from 1.00 % to 2.00 % for Daily Simple SOFR loans and 0.15 % to 1.00 % for Base Rate loans, in each case based on the Company's consolidated total lease adjusted leverage ratio. Borrowings under the New Vehicle Floorplan Facility bear interest, at the option of the Company, based on Daily Simple SOFR plus 1.10 %, or the Base Rate plus 0.10 %. Borrowings under the Used Vehicle Floorplan Facility bear interest, at the option of the Company, based on Daily Simple SOFR plus 1.40 % or the Base Rate plus 0.40 %. 
 In addition to the payment of interest on borrowings outstanding under the 2023 Senior Credit Facility, we are required to pay a quarterly commitment fee on total unused commitments thereunder. The fee for unused commitments under the Revolving Credit Facility is between 0.15 % and 0.40 % per year, based on the Company's total lease adjusted leverage ratio, and the fee for unused commitments under the New Vehicle Facility Floor Plan and the Used Vehicle Facility Floor Plan Facility is 0.15 % per year. 
 The 2023 Senior Credit Facility matures, and all amounts outstanding thereunder will be due and payable, on October 20, 2028. 
 The representations and covenants contained in the 2023 Senior Credit Agreement are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the 2023 Senior Credit Agreement. In addition, certain other covenants could restrict the Company's ability to incur additional debt, pay dividends or acquire or dispose of assets. 
 The 2023 Senior Credit Agreement also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. In certain instances, an event of default under either the Revolving Credit Facility or the Used Vehicle Floorplan Facility could be, or result in, an event of default under the New Vehicle Floorplan Facility, and vice versa. Upon the occurrence of an event of default, the Company could be required to immediately repay all amounts outstanding under the applicable facility. 
 See the "Representations and Covenants" section below under our "Long-Term Debt" footnote for a description of the representations, covenants and events of default contained in the 2023 Senior Credit Facility. 
 In addition to our new and used vehicle floor plan facilities, we have loaner vehicle floor plan facilities with Bank of America and certain original equipment manufacturers (“OEMs”). Loaner vehicles notes payable related to Bank of America was $ 65.0 million as of December 31, 2025 and $ 56.7 million as of December 31, 2024. Loaner vehicles notes payable related to OEMs as of December 31, 2025 and 2024 were $ 190.2 million and $ 161.5 million, respectively. 
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 13. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES 
 Accounts payable and accrued liabilities consisted of the following: 
 
 As of December 31, 
 2025 2024 
 (In millions) 
 Loaner vehicles notes payable $ 255.2 $ 218.1 
 Accounts payable 152.3 169.1 
 Taxes payable 80.8 82.1 
 Accrued compensation and benefits 75.7 80.5 
 Accrued interest 49.5 45.5 
 Accrued insurance 30.5 30.4 
 Customer deposits 26.4 25.2 
 Accrued finance and insurance chargebacks 17.9 23.2 
 Accrued licenses and regulatory fees 23.7 21.0 
 Unearned premium 13.5 14.0 
 Customer we owe liabilities 8.0 7.5 
 Accrued advertising 11.8 6.1 
 
 Other 35.1 38.6 
 Accounts payable and accrued liabilities $ 780.3 $ 761.4 

 
 14. DEBT 
 Long-term debt consisted of the following: 
 As of December 31, 
 2025 2024 
 (In millions) 
 4.50 % Senior Notes due 2028 
 $ 405.0 $ 405.0 
 4.625 % Senior Notes due 2029 
 800.0 800.0 
 4.75 % Senior Notes due 2030 
 445.0 445.0 
 5.00 % Senior Notes due 2032 
 600.0 600.0 
 Mortgage notes payable bearing interest at fixed rates 27.2 29.6 
 2025 Real Estate Facility 537.4 — 
 2021 Real Estate Facility 442.1 579.9 
 2021 BofA Real Estate Facility 151.2 158.6 
 2018 Bank of America Facility — 37.9 
 2018 Wells Fargo Master Loan Facility 57.2 62.2 
 
 2015 Wells Fargo Master Loan Facility — 32.0 
 2023 Syndicated Revolving Credit Facility 120.0 — 
 Finance lease liability 8.3 8.4 
 Total debt outstanding 3,593.4 3,158.5 
 Add—unamortized premium on 4.50 % Senior Notes due 2028 
 0.3 0.5 
 Add—unamortized premium on 4.75 % Senior Notes due 2030 
 0.8 1.1 
 Less—debt issuance costs ( 22.6 ) ( 21.5 ) 
 Long-term debt, including current portion 3,572.0 3,138.6 
 Less—current portion, net of debt issuance costs ( 479.2 ) ( 114.7 ) 
 Long-term debt $ 3,092.8 $ 3,023.9 

 
 
 
 
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 The aggregate maturities of long-term debt as of December 31, 2025 are as follows (in millions): 
 
 2026 $ 484.4 
 2027 42.4 
 2028 610.2 
 2029 837.7 
 2030 482.9 
 Thereafter 1,135.8 
 Total maturities of long-term debt $ 3,593.4 

 Senior Notes issued in 2021 
 In connection with the LHM acquisition, on November 19, 2021, the Company completed its offering of $ 800 million aggregate principal amount of 4.625 % senior notes due 2029 (the "2029 Notes") and $ 600 million aggregate principal amount of 5.000 % senior notes due 2032 (the "2032 Notes"). 
 The Company paid lender fees of $ 17.5 million in conjunction with the offering of the 2029 Notes and 2032 Notes and incurred additional debt issuance costs of $ 4.0 million. 
 The lender fees and other debt issuance costs incurred are being amortized over the terms of the 2029 and 2032 Notes using the effective interest method. 
 The 2029 Notes will mature on November 15, 2029. If we sell certain of our assets or experience specific kinds of changes of control, we must offer to repurchase the 2029 Notes. 
 The 2032 Notes mature on February 15, 2032. We may redeem some or all of the 2032 Notes at any time on and after November 15, 2026 at redemption prices specified in the 2032 Notes Indenture. Prior to November 15, 2026, we may also redeem up to 40 % of the aggregate principal amount of the 2032 Notes using the proceeds from certain equity offerings at a redemption price of 105 % of their principal amount plus accrued and unpaid interest to, if any, but not including the redemption date. In addition, we may redeem some or all of the 2032 Notes at any time prior to November 15, 2026 at a price equal to 100 % of the principal amount thereof plus a make-whole premium set forth in the 2032 Notes Indenture, and accrued and unpaid interest, if any. If we sell certain of our assets or experience specific kinds of changes of control, we must offer to repurchase the 2032 Notes. 
 We are a holding company with no independent assets or operations. For all relevant periods presented, our 2029 Notes and 2032 Notes have been fully and unconditionally guaranteed, on a joint and several basis, by substantially all of our subsidiaries other than Landcar Administration Company, Landcar Agency, Inc., and Landcar Casualty Company (collectively, the "TCA Non-Guarantor Subsidiaries"). 
 Senior Notes issued in 2020 
 In connection with the proposed acquisition of the Park Place dealerships announced in December 2019 ("2019 Acquisition"), on February 19, 2020, the Company completed its offering of senior unsecured notes (the "February 2020 Offering"), consisting of $ 525.0 million aggregate principal amount of 4.50 % Senior Notes due 2028 (the "Existing 2028 Notes") and together with the Additional 2028 Notes ((as defined below), the "2028 Notes") and $ 600.0 million aggregate principal amount of 4.75 % Senior Notes due 2030 (the "Existing 2030 Notes" and, together with the Existing 2028 Notes, the "Existing Notes") and together with the Additional 2030 Notes ((as defined below), the "2030 Notes"). The Company paid lender fees of 6.8 million in conjunction with the February 2020 Offering and incurred additional debt issuance costs of 3.1 million. 
 As a result of the termination of the 2019 Acquisition, the Company delivered a notice of special mandatory redemption to holders of its Existing 2028 Notes and Existing 2030 Notes pursuant to which it would redeem on a pro rata basis (1) $ 245.0 million of the Existing 2028 Notes and (2) $ 280.0 million of the 2030 Existing Notes, in each case, at 100 % of the respective principal amount plus accrued and unpaid interest to but excluding, the special mandatory redemption date. On March 30, 2020, the Company completed the redemption. 
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 In September 2020, following the consummation of the Park Place acquisition, the Company completed an issuance of $ 250.0 million aggregate principal amount of additional senior unsecured notes (the "September 2020 Offering") consisting of $ 125.0 million aggregate principal amount of additional 4.50 % Senior Notes due 2028 (the "Additional 2028 Notes") at a price of 101.00 % of par, plus accrued interest from September 1, 2020, and $ 125.0 million aggregate principal amount of additional 4.75 % Senior Notes due 2030 (the "Additional 2030 Notes" and together with the Additional 2028 Notes, the "Additional Notes") at a price of 101.75 % of par, plus accrued interest from September 1, 2020. After deducting the initial purchasers' discounts of $ 2.8 million, we received net proceeds of approximately $ 250.6 million from the September 2020 Offering. The $ 3.5 million premium paid by the initial purchasers of the Additional Notes was recorded as a component of long-term debt on our consolidated balance sheet and is being amortized as a reduction of interest expense over the remaining term of the Additional Notes. The proceeds of the September 2020 Offering were used to redeem certain seller notes issued in connection with the Park Place acquisition and repay approximately $ 50.0 million in aggregate principal amount outstanding under our Revolving Credit Facility. 
 The lender fees and other debt issuance costs incurred are being amortized over the terms of the Notes using the effective interest method. 
 The 2028 Notes and 2030 Notes mature on March 1, 2028 and March 1, 2030, respectively. Interest is payable semiannually, on March 1 and September 1 of each year. The February 2020 Offering, together with additional borrowings and cash on hand, was incurred to (i) fund the acquisition of substantially all of the assets of Park Place, (ii) redeem all of our outstanding $ 600.0 million aggregate principal amount of the 6.0 % Notes (the " 6.0 % Notes") and (iii) pay fees and expenses in connection with the foregoing. 
 The remaining outstanding 2028 Notes and 2030 Notes are subject to customary covenants, events of default and optional redemption provisions. In addition, the remaining outstanding 2028 Notes and 2030 Notes were required to be registered under the Securities Act of 1933 within 270 days of the closing date for the offering. The Company completed the registration of the 2028 Notes and 2030 Notes in October 2020. 
 For all relevant periods presented, our 2028 Notes and 2030 Notes have been fully and unconditionally guaranteed, on a joint and several basis, by substantially all of our subsidiaries other than the TCA Non-Guarantor Subsidiaries. 
 Mortgage Financings 
 We have multiple mortgage agreements with finance companies affiliated with our vehicle manufacturers ("captive mortgages"). During the year ended December 31, 2024, we modified the captive mortgages to extend the payment term and maturity of the captive mortgages to August 2034. In addition, the interest rate was amended to 5.8 % over the revised term. As of December 31, 2025, and 2024, we had total mortgage notes payable outstanding of $ 27.2 million and $ 29.6 million, respectively, that are collateralized by the associated real estate. 
 2025 Wells Fargo Real Estate Facility 
 On July 21, 2025, certain subsidiaries of the Company borrowed $ 546.5 million under the 2025 Real Estate Facility, dated as of July 21, 2025 (the “Real Estate Credit Agreement”) by and among the Company, certain of the Company’s subsidiaries that own or lease the real estate financed thereunder, as borrowers, Wells Fargo, as administrative agent, and the various financial institutions parties thereto, as lenders. The Real Estate Facility matures ten years from the initial funding date. The Company used the proceeds from these borrowings, together with other available funds, to finance the Herb Chambers acquisition. 
 
 
 Term loans under the 2025 Real Estate Facility bear interest, at our option, based on (1) SOFR plus 2 % per annum or (2) the Base Rate (as described below) plus 1 % per annum. The Base Rate is the highest of (a) the Prime Rate, (b) the Federal Funds Rate plus .50 % and (c) Term SOFR for a one month tenor in effect on such date plus 1 %. We are required to make 118 consecutive monthly principal payments, commencing September 1, 2025, with a balloon repayment of the outstanding principal amount of loans due on the Maturity Date. Borrowings und er the 2025 Real Estate Facility are guaranteed by the Company and certain of the Company’s subsidiaries, and are collateralized by first priority liens, subject to certain permitted exceptions, on all of the real property financed thereunder. 
 
 
 The representations, warranties and covenants in the Real Estate Credit Agreement are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the Real Estate Credit Agreement. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The Real Estate Credit Agreement also provides for events of default that are customary for financing transactions of this 
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 nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required by the Real Estate Credit Agreement to immediately repay all amounts outstanding thereunder. 
 
 
 As of December 31, 2025, we had $ 537.4 million in term loans outstanding under the 2025 Real Estate Facility. 
 2021 Real Estate Facility 
 On December 17, 2021, we entered into a real estate term loan credit agreement with Bank of America, N.A., as administrative agent and the various financial institutions party thereto, as lenders, which provides for term loans in an aggregate amount equal to $ 689.7 million (the "2021 Real Estate Facility"). The Company used the proceeds from these borrowings to finance the purchase of the real property in connection with the LHM acquisition as well as other acquisitions and unencumbered real property. 
 Term loans under the 2021 Real Estate Facility bear interest, at our option, based on (1) Daily Simple SOFR plus 1.55 % - 1.95 % per annum (as determined by the consolidated total lease adjusted leverage ratio), or (2) the Base Rate (as described below) plus 0.55 % - 0.95 % per annum (as determined by the consolidated total lease adjusted leverage ratio). The Base Rate is the highest of (i) the Federal Funds rate plus 0.50 %, (ii) the Bank of America prime rate, (iii) the Daily Simple SOFR plus 1.0 % and (iv) 1.00 %. We will be required to make 20 consecutive quarterly principal payments of 1.25 % of the initial amount of each loan, with a balloon repayment of the outstanding principal amount of loans due on the maturity date. The 2021 Real Estate Facility matures five years from the initial funding date. Borrowings under the 2021 Real Estate Facility are guaranteed by us, and are collateralized by first priority liens, subject to certain permitted exceptions, on all of the real property financed thereunder. 
 As of December 31, 2025 and 2024, we had $ 442.1 million and $ 579.9 million, respectively, in term loans outstanding under the 2021 Real Estate Facility. 
 2021 BofA Real Estate Facility 
 On May 20, 2021, the Company and certain of its subsidiaries borrowed $ 184.4 million under a real estate term loan credit agreement, dated as of May 10, 2021 (the "2021 BofA Real Estate Credit Agreement"), by and among the Company and certain of its subsidiaries, Bank of America, N.A., as administrative agent and the various financial institutions party thereto, as lenders, which provides for term loans in an aggregate amount equal to $ 184.4 million, subject to customary terms and conditions (the "2021 BofA Real Estate Facility"). The Company used the proceeds from these borrowings to finance the exercise of its option to purchase certain of the leased real property under the definitive agreements entered into in connection with the acquisition of the Park Place Dealerships. The Company completed the purchase of the leased real property on May 20, 2021. 
 On May 25, 2022, we entered into the second amendment to the credit agreement to, among other things, revise the benchmark interest rate payable on term loans under our 2021 BofA Real Estate Facility. Interest is payable, at our option, based on (1) SOFR plus 0.10 %, plus 1.65 % per annum or (2) the Base Rate plus 0.65 % per annum. The Base Rate is the highest of (i) the Federal Funds rate plus 0.50 %, (ii) the Bank of America prime rate, (iii) SOFR plus 0.10 %, plus 1.00 %, and (iv) 1.00 %. 
 We are required to make 39 consecutive quarterly principal payments of 1.00 % of the initial amount of each loan, with a balloon repayment of the outstanding principal amount of loans due on the maturity date. The 2021 BofA Real Estate Facility matures ten years from the initial funding date. Borrowings under the 2021 BofA Real Estate Facility are guaranteed by us and each of our operating dealership subsidiaries that leased the real estate now financed under the 2021 BofA Real Estate Facility, and are collateralized by first priority liens, subject to certain permitted exceptions, on all of the real property financed thereunder. 
 The representations and covenants in the 2021 BofA Real Estate Facility are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the 2021 BofA Real Estate Facility. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The 2021 BofA Real Estate Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required by the 2021 BofA Real Estate Facility to immediately repay all amounts outstanding thereunder. 
 As of December 31, 2025 and 2024, we had $ 151.2 million and $ 158.6 million, respectively, in term loans outstanding under the 2021 BofA Real Estate Facility. 
 
 
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 2018 BofA Real Estate Facility 
 On November 13, 2018, we entered into a real estate term loan credit agreement (as amended, restated or supplemented from time to time, the "2018 BofA Real Estate Credit Agreement") with Bank of America, as lender, providing for term loans in an aggregate amount not to exceed $ 128.1 million, subject to customary terms and conditions (the "2018 BofA Real Estate Facility"). Our right to make draws under the 2018 BofA Real Estate Facility terminated on November 13, 2019. We are required to make quarterly principal payments of 1.25 % of the initial amount of each loan on a twenty-year repayment schedule, with a balloon repayment of the outstanding principal amount of loans due on November 13, 2025. Borrowings under the 2018 BofA Real Estate Facility are guaranteed by each of our operating dealership subsidiaries whose real estate is financed under the 2018 BofA Real Estate Facility, and are collateralized by first priority liens, subject to certain permitted exceptions, on all of the real property financed thereunder. 
 On May 25, 2022, we entered into the third amendment to the credit agreement to revise the benchmark interest rate payable on term loans under our 2018 BofA Real Estate Facility. Interest is payable, at our option, based on SOFR plus 0.10 %, plus 1.50 % or the Base Rate plus 0.50 %. The Base Rate is the highest of (i) the Federal Funds rate plus 0.50 %, (ii) the Bank of America prime rate, (iii) SOFR plus 0.10 %, plus 1.00 %, and (iv) 1.00 %. 
 In November 2025, we paid off the aggregate principal amounts remaining under the 2018 BofA Real Estate Facility for an aggregate amount of approximately $ 34.2 million. As of December 31, 2024, we had $ 37.9 million in term loans outstanding under the 2018 BofA Real Estate Facility. 
 2018 Wells Fargo Master Loan Facility 
 On November 16, 2018, certain of our subsidiaries entered into a master loan agreement (the "2018 Wells Fargo Master Loan Agreement" and, together with the 2013 BofA Real Estate Credit Agreement, the 2015 Wells Fargo Master Loan Agreement and the 2018 BofA Real Estate Agreement, the "Existing Real Estate Credit Agreements") with Wells Fargo Bank, National Association, as lender, which provides for term loans to certain of our subsidiaries that are borrowers under the Wells Fargo Master Loan Agreement in an aggregate amount not to exceed $ 100.0 million (the "Wells Fargo Master Loan Facility"), subject to customary terms and conditions (the "2018 Wells Fargo Master Loan Facility"). Our right to make draws under the 2018 Wells Fargo Master Loan Facility terminated on June 30, 2020. We are required to make quarterly principal payments with respect to the initial amount of each loan in 108 equal monthly principal payments based on a hypothetical nineteen-year amortization schedule, with a balloon repayment of the outstanding principal amount of loans due on December 1, 2028. Borrowings under the 2018 Wells Fargo Master Loan Facility can be voluntarily prepaid in whole or in part any time without premium or penalty. Borrowings under the 2018 Wells Fargo Master Loan Facility are guaranteed by us pursuant to an unconditional guaranty, and all of the real property financed by any of our operating dealership subsidiaries under the 2018 Wells Fargo Master Loan Facility is collateralized by first priority liens, subject to certain permitted exceptions. 
 On June 1, 2022, certain of our subsidiaries entered into the second amendment to the master loan agreement that revised interest payable from a LIBOR reference rate to SOFR plus 0.10 %, plus an applicable margin based on a pricing grid ranging from 1.50 % to 1.85 % per annum based on our consolidated total lease adjusted leverage ratio. 
 As of December 31, 2025 and 2024, we had $ 57.2 million and $ 62.2 million, respectively, outstanding borrowings under the 2018 Wells Fargo Master Loan Facility. 
 2015 Wells Fargo Master Loan Facility 
 On February 3, 2015, certain of our subsidiaries entered into an amended and restated master loan agreement (as amended, restated or supplemented from time to time, the "2015 Wells Fargo Master Loan Agreement") with Wells Fargo Bank, National Association ("Wells Fargo"), as lender, which provides form term loans to certain of our subsidiaries that are borrowers under the 2015 Wells Fargo Master Loan Agreement in an aggregate amount not to exceed $ 100.0 million (the "2015 Wells Fargo Master Loan Facility"). Our right to make draws under the 2015 Wells Fargo Master Loan Facility terminated on February 1, 2016. We are required to make quarterly principal payments with respect to the initial amount of each loan in 108 equal monthly principal payments based on a hypothetical nineteen-year amortization schedule, with a balloon repayment of the outstanding principal amount of loans due on February 1, 2025. Borrowings under the 2015 Wells Fargo Master Loan Facility can be voluntarily prepaid in whole or in part any time without premium or penalty. Borrowings under the 2015 Wells Fargo Master Loan Facility are guaranteed by us pursuant to an unconditional guaranty, and all of the real property financed by any of our operating dealership subsidiaries under the 2015 Wells Fargo Master Loan Facility is collateralized by first priority liens, subject to certain permitted exceptions. 
 On June 1, 2022, certain of our subsidiaries entered into the second amendment to the master loan agreement that revised interest payable from a LIBOR reference rate to SOFR plus 0.10 %, plus 1.85 % per annum. 
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 The outstanding balance under this agreement in the amount of $ 31.6 million was paid off in May 2025. As of December 31, 2024 we had $ 32.0 million outstanding under the 2015 Wells Fargo Master Loan Facility. 
 2013 BofA Real Estate Facility 
 On September 26, 2013, we entered into a real estate term loan credit agreement (the "2013 BofA Real Estate Credit Agreement") with Bank of America, N.A. ("Bank of America"), as lender, providing for term loans in an aggregate amount not to exceed $ 75.0 million, subject to customary terms and conditions (the "2013 BofA Real Estate Facility"). Our right to make draws under the 2013 BofA Real Estate Facility terminated on December 26, 2013. In June 2023, the Company prepaid the aggregate principal amounts remaining under the 2013 BofA Real Estate Facility for an aggregate amount of approximately $ 23.9 million with cash on hand. 
 On May 25, 2022, we entered into the third amendment to the credit agreement to revise the benchmark interest rate payable on term loans under our 2013 BofA Real Estate Facility. Interest is payable, at our option, based on SOFR plus 0.10 %, plus 1.50 % or the Base Rate plus 0.50 %. The Base Rate is the highest of (i) the Federal Funds rate plus 0.50 %, (ii) the Bank of America prime rate, (iii) SOFR plus 0.10 %, plus 1.00 %, and (iv) 1.00 %. Our right to make draws under the 2013 BofA Real Estate Facility terminated on December 26, 2013. 
 Summary of Mortgages 
 Below is a summary of our outstanding mortgage notes payable, the carrying values of the related collateralized real estate, and year of maturity as of December 31, 2025 and 2024: 
 
 As of December 31, 2025 As of December 31, 2024 
 Mortgage Agreement Aggregate Principal Outstanding Carrying Value of Collateralized Related Real Estate Maturity Dates Aggregate Principal Outstanding Carrying Value of Collateralized Related Real Estate Maturity Dates 
 Captive mortgages $ 27.2 $ 84.2 2034 $ 29.6 $ 84.9 2034 
 2025 Real Estate Facility 537.4 591.4 2035 — — N/A 
 2021 Real Estate Facility 442.1 694.9 2026 579.9 845.9 2026 
 2021 BofA Real Estate Facility 151.2 191.2 2031 158.6 195.0 2031 
 2018 BofA Real Estate Facility — — N/A 37.9 59.4 2025 
 2018 Wells Fargo Master Loan Facility 57.2 81.6 2028 62.2 94.4 2028 
 
 2015 Wells Fargo Master Loan Facility — — N/A 32.0 93.4 2025 
 
 Total mortgage debt $ 1,215.1 $ 1,643.3 $ 900.2 $ 1,362.8 

 Revolving Credit Facility 
 As discussed above under our "Floor Plan Notes Payable—Non-Trade" footnote, the 2023 Senior Credit Facility includes a $ 925.0 million Revolving Credit Facility. We may request Bank of America to issue letters of credit on our behalf thereunder up to $ 50.0 million. Availability under the Revolving Credit Facility is limited by borrowing base calculations and is reduced on a dollar-for-dollar basis by the aggregate face amount of any outstanding letters of credit. As of December 31, 2025, we had $ 25.2 million in outstanding letters of credit, $ 120.0 million of outstanding borrowings, and $ 747.3 million of borrowing availability, with an additional $ 495.0 million available to convert from our new vehicle floorplan facility. As of December 31, 2024, we had $ 14.0 million in outstanding letters of credit, nothing drawn on our Revolving Credit Facility and $ 486.0 million of borrowing availability. Proceeds from borrowings from time to time under the revolving credit facility may be used for among other things, acquisitions, working capital and capital expenditures. 
 Stock Repurchase and Dividend Restrictions 
 The 2023 Senior Credit Facility and the Indentures currently allow for restricted payments without limit so long as our Consolidated Total Leverage Ratio (as defined in the 2023 Senior Credit Facility and the Indentures) is not greater than 3.0 to 1.0 after giving effect to such proposed restricted payments. Restricted payments generally include items such as dividends, share repurchases, unscheduled repayments of subordinated debt, or purchases of certain investments. Subject to our continued compliance with a consolidated fixed charge coverage ratio and a maximum consolidated total lease adjusted leverage ratio, in 
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 each case as set out in the Indentures, restricted payments capacity additions (or subtractions if negative) equal to a base level plus the cumulative amount of (i) 50 % of our net income (as defined in the 2023 Senior Credit Facility) plus (ii) 100 % of any cash proceeds we receive from the sale of equity interests minus (iii) the dollar amount of share purchases made and dividends paid during the defined measurement periods, subject to certain exceptions. In the event that our Consolidated Total Leverage Ratio does (or would) exceed 3.0 to 1.0, the 2023 Senior Credit Facility and the Indentures would then also allow for restricted payments under mutually exclusive parameters, subject to certain exclusions. The Company may otherwise make restricted payments only up to the aforementioned cumulative capacity. Our restricted payment capacity balance as of December 31, 2025 and 2024 was $ 1.34 billion and $ 1.22 billion, respectively. 
 Representations and Covenants 
 We are subject to a number of covenants in our various debt and lease agreements, including those described below. We were in compliance with all of our covenants throughout 2025. Failure to comply with any of our debt covenants would constitute a default under the relevant debt agreements, which would entitle the lenders under such agreements to terminate our ability to borrow under the relevant agreements and accelerate our obligations to repay outstanding borrowings, if any, unless compliance with the covenants is waived. In many cases, defaults under one of our agreements could trigger cross-default provisions in our other agreements. If we are unable to remain in compliance with our financial or other covenants, we would be required to seek waivers or modifications of our covenants from our lenders, or we would need to raise debt and/or equity financing or sell assets to generate proceeds sufficient to repay such debt. We cannot give any assurance that we would be able to successfully take any of these actions on terms, or at times, that may be necessary or desirable. 
 The representations and covenants contained in the agreement governing the 2023 Senior Credit Facility are customary for financing transactions of this nature including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the agreement governing the 2023 Senior Credit Facility. In addition, certain other covenants could restrict the Company's ability to incur additional debt, pay dividends or acquire or dispose of assets. 
 The agreement governing the 2023 Senior Credit Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. In certain instances, an event of default under either the Revolving Credit Facility or the Used Vehicle Floor Plan Facility could be, or result in, an event of default under the New Vehicle Floor Plan Facility, and vice versa. Upon the occurrence of an event of default, the Company could be required to immediately repay all amounts outstanding under the applicable facility. 
 The representations and covenants contained in the 2025 Real Estate Facility are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the 2025 Real Estate Facility. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The 2025 Real Estate Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required to immediately repay all amounts outstanding thereunder. 
 The representations and covenants contained in the 2021 BofA Real Estate Facility are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the 2021 BofA Real Estate Facility. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The 2021 BofA Real Estate Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required to immediately repay all amounts outstanding thereunder. 
 The representations and covenants contained in the 2021 Real Estate Facility are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio, in each case as set out in the 2021 Real Estate Facility. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The 2021 Real Estate Facility also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required to immediately repay all amounts outstanding thereunder. 
 The representations, warranties and covenants contained in the 2018 Wells Fargo Master Loan Agreement and the related documents are customary for financing transactions of this nature, including, among others, a requirement to comply with a minimum consolidated fixed charge coverage ratio and maximum consolidated total lease adjusted leverage ratio. In addition, certain other covenants could restrict our ability to incur additional debt, pay dividends or acquire or dispose of assets. The 
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 2018 Wells Fargo Master Loan Agreement also provides for events of default that are customary for financing transactions of this nature, including cross-defaults to other material indebtedness. Upon the occurrence of an event of default, we could be required by the 2018 Wells Fargo Master Loan Facility to immediately repay all amounts outstanding thereunder. 
 
 15. FINANCIAL INSTRUMENTS AND FAIR VALUE 
 In determining fair value, we use various valuation approaches, including market and income approaches. Accounting standards establish a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in pricing the asset or liability developed based on market data obtained from independent sources. Unobservable inputs are inputs that reflect our assumptions about the assumptions market participants would use in pricing the asset or liability, developed based on the best information available in the circumstances. The hierarchy is broken down into three levels based on the reliability of inputs as follows: 
 Level 1-Valuations based on quoted prices in active markets for identical assets or liabilities that we have the ability to access. 
 Level 2-Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Assets and liabilities utilizing Level 2 inputs include interest rate swap instruments, exchange-traded debt securities that are not actively traded or do not have a high trading volume, and certain real estate properties on a non-recurring basis. 
 Level 3-Valuations based on inputs that are unobservable and significant to the overall fair value measurement. Asset and liability measurements utilizing Level 3 inputs include those used in estimating the fair value of certain non-financial assets and non-financial liabilities in purchase acquisitions and those used in the assessment of impairment for goodwill and intangible franchise rights. 
 The availability of observable inputs can vary and is affected by a wide variety of factors. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment required to determine fair value is greatest for instruments categorized in Level 3. In certain cases, the inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the level in the fair value hierarchy within which the fair value measurement is disclosed is determined based on the lowest level input that is significant to the fair value measurement. 
 Fair value is a market-based exit price measure considered from the perspective of a market participant who holds the asset or owes the liability rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, our assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. We use inputs that are current as of the measurement date, including during periods of significant market fluctuations. 
 Financial instruments consist primarily of cash and cash equivalents, investments, contracts-in-transit, accounts receivable, cash surrender value of corporate-owned life insurance policies, accounts payable, floor plan notes payable, subordinated long-term debt, mortgage notes payable, and interest rate swap instruments. The carrying values of our financial instruments, with the exception of subordinated long-term debt and mortgage notes payable bearing interest at fixed rates, approximate fair value primarily due to (i) their short-term nature, (ii) recently completed market transactions, or (iii) existence of variable interest rates, which approximate market rates. The fair value of our subordinated long-term debt is based on reported market prices in an inactive market that reflects Level 2 inputs. We estimate the fair value of our mortgage notes payable using a present value technique based on current market interest rates for similar types of financial instruments that reflect Level 2 inputs. 
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 A summary of the carrying values and fair values of our Notes and our mortgage notes payable is as follows: 
 
 As of December 31, 
 2025 2024 
 (In millions) 
 Carrying Value: 
 4.50 % Senior Notes due 2028 
 $ 403.9 $ 403.4 
 4.625 % Senior Notes due 2029 
 793.4 791.9 
 4.75 % Senior Notes due 2030 
 443.2 442.8 
 5.00 % Senior Notes due 2032 
 593.9 593.0 
 Mortgage notes payable bearing interest at fixed rates 
 27.2 29.6 
 Total carrying value $ 2,261.6 $ 2,260.6 
 
 Fair Value: 
 4.50 % Senior Notes due 2028 
 $ 399.9 $ 385.8 
 4.625 % Senior Notes due 2029 
 778.0 742.0 
 4.75 % Senior Notes due 2030 
 433.9 412.7 
 5.00 % Senior Notes due 2032 
 579.0 546.0 
 Mortgage notes payable bearing interest at fixed rates 
 27.7 29.3 
 Total fair value $ 2,218.5 $ 2,115.8 

 
 
 Interest Rate Swap Agreements 
 We currently have four interest rate swap agreements. These swaps are designed to provide a hedge against changes in variable rate cash flows regarding fluctuations in the SOFR rate. The following table provides information on the attributes of each swap as of December 31, 2025: 
 
 Inception Date Notional Principal at Inception Notional Value as of December 31, 2025 Notional Principal at Maturity Maturity Date 
 (In millions) 
 January 2022 $ 300.0 $ 243.8 $ 228.8 December 2026 
 January 2022 $ 250.0 $ 250.0 $ 250.0 December 2031 
 May 2021 $ 184.4 $ 151.2 $ 110.6 May 2031 
 July 2020 $ 93.5 $ 65.8 $ 50.6 December 2028 
 
 

 The fair value of cash flow swaps is calculated as the present value of expected future cash flows, determined on the basis of forward interest rates and present value factors. Fair value estimates reflect a credit adjustment to the discount rate applied to all expected cash flows under the swaps. Other than this input, all other inputs used in the valuation for these swaps are designated to be Level 2 fair values. The fair value of our swaps for the years ended December 31, 2025 and 2024, reflect a net asset of $ 47.0 million and $ 76.6 million, respectively. 
 The following table provides information regarding the fair value of our interest rate swap agreements and the impact on the consolidated balance sheets: 
 As of December 31, 
 2025 2024 
 (In millions) 
 Other current assets $ 13.2 $ 20.3 
 
 Other long-term assets 33.8 56.3 
 
 Total fair value $ 47.0 $ 76.6 

 Our interest rate swaps qualify for cash flow hedge accounting treatment. These interest rate swaps are marked to market at each reporting date and any unrealized gains or losses are included in accumulated other comprehensive income and reclassified to interest expense in the same period or periods during which the hedged transactions affect earnings. Information about the 
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 effect of our interest rate swap agreements in the accompanying consolidated statements of income and consolidated statements of comprehensive income, is as follows (in millions): 
 
 For the Year Ended December 31, Results Recognized in Accumulated Other Comprehensive Income/(Loss)
(Effective Portion) Location of Results Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings 
 Results Reclassified from Accumulated Other Comprehensive Income/(Loss)
to Earnings 
 2025 $ ( 6.2 ) Other interest expense, net $ ( 23.4 ) 
 2024 $ 31.0 Other interest expense, net $ ( 34.2 ) 
 2023 $ 12.1 Other interest expense, net $ ( 34.7 ) 

 
 
 On the basis of yield curve conditions as of December 31, 2025 and including assumptions about future changes in fair value, we expect the amount to be reclassified out of accumulated other comprehensive income into earnings within the next 12 months will be gains of approximately $ 13.2 million. 
 Investments 
 The table below presents the Company’s investment securities that are measured at fair value on a recurring basis aggregated by the level in the fair value hierarchy within which those measurements fall: 
 
 As of December 31, 2025 
 Level 1 Level 2 Level 3 Total 
 (In millions) 
 Cash equivalents $ 6.7 $ — $ — $ 6.7 
 Short-term investments 0.5 — — 0.5 
 U.S. Treasuries 2.6 — — 2.6 
 Municipal — 5.0 — 5.0 
 Corporate 0.3 166.7 — 167.0 
 Mortgage and other asset-backed securities — 240.1 — 240.1 
 
 
 
 Total $ 3.5 $ 411.8 $ — $ 415.3 

 
 
 
 As of December 31, 2024 
 Level 1 Level 2 Level 3 Total 
 (In millions) 
 Cash equivalents $ 12.7 $ — $ — $ 12.7 
 Short-term investments 3.5 10.9 — 14.4 
 U.S. Treasuries 2.6 — — 2.6 
 Municipal — 10.6 — 10.6 
 Corporate — 151.9 — 151.9 
 Mortgage and other asset-backed securities — 169.1 — 169.1 
 
 
 
 Total $ 6.1 $ 342.5 $ — $ 348.6 

 We review the fair value hierarchy classifications each reporting period. Changes in the observability of the valuation attributes may result in a reclassification of certain investments. Such reclassifications are reported as transfers in and out of Level 3, or between other levels, at the beginning fair value for the reporting period in which the changes occur. 
 Available-for-sale debt securities are recorded at fair value and any unrealized gains or losses are included in accumulated other comprehensive income and reclassified to finance and insurance, net revenue in the period or periods during which the debt securities are sold and the gains or losses are realized. Information about the effect of our available-for-sale debt securities 
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 in the accompanying consolidated statements of income and consolidated statements of comprehensive income, is as follows (in millions): 
 
 For the Year Ended December 31, Results Recognized in Accumulated Other Comprehensive Income/(Loss)
(Effective Portion) Location of Results Reclassified from Accumulated Other Comprehensive Income/(Loss) to Earnings 
 Results Reclassified from Accumulated Other Comprehensive Income/(Loss)
to Earnings 
 2025 $ 7.4 Revenue-Finance and insurance, net $ 0.7 
 2024 $ ( 1.9 ) Revenue-Finance and insurance, net $ 0.6 
 2023 $ 4.1 Revenue-Finance and Insurance, net $ ( 1.1 ) 

 
 16. INCOME TAXES 
 The components of income tax expense are as follows: 
 
 For the Year Ended December 31, 
 2025 2024 2023 
 (In millions) 
 Current: 
 Federal $ 115.4 $ 75.5 $ 128.9 
 State 26.4 16.8 30.1 
 Total current income tax expense 141.8 92.3 159.0 
 Deferred: 
 Federal 20.7 43.2 33.8 
 State 7.7 9.5 6.0 
 Total deferred income tax expense 28.4 52.7 39.8 
 Total income tax expense $ 170.2 $ 145.0 $ 198.8 

 
 
 
 
 A reconciliation of the statutory federal rate to the effective tax rate is as follows (dollar amounts shown in millions) : 
 
 For the Year Ended December 31, 
 2025 % 2024 % 2023 % 
 Income tax provision at the statutory rate $ 139.0 21.0 $ 120.8 21.0 $ 168.3 21.0 
 State income tax expense, net of federal benefit (a) 
 28.6 4.3 22.8 4.0 29.8 3.7 
 Non-deductible items 2.9 0.5 2.5 0.4 1.7 0.2 
 
 
 Other, net ( 0.3 ) ( 0.1 ) ( 1.1 ) ( 0.2 ) ( 1.0 ) ( 0.1 ) 
 Income tax expense $ 170.2 25.7 $ 145.0 25.2 $ 198.8 24.8 

 _____________________________ 
 (a) State taxes in Massachusetts, Florida, and Virginia make up the majority (greater than 50 percent) of the tax effect in this category. 
 
 
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 Deferred income tax asset and liability components consisted of the following: 
 As of December 31, 
 2025 2024 
 (In millions) 
 Deferred income tax assets: 
 
 Deferred revenue $ 55.3 $ 41.5 
 F&I chargeback liabilities 10.5 11.7 
 Other accrued liabilities 5.4 4.2 
 Stock-based compensation 3.6 4.0 
 
 
 Operating lease right-of-use assets 62.3 56.2 
 Other, net 12.5 11.6 
 Total deferred income tax assets $ 149.6 $ 129.2 
 
 
 Deferred income tax liabilities: 
 Intangible asset amortization $ 154.2 $ 135.3 
 Depreciation 89.0 80.0 
 Operating lease liabilities 60.5 54.2 
 
 Investments, net 13.4 18.6 
 Deferred sales commissions 41.2 27.2 
 Other, net 1.9 1.6 
 Total deferred income tax liabilities $ 360.2 $ 316.9 
 Net deferred income tax liabilities $ ( 210.6 ) $ ( 187.7 ) 

 There were no valuation allowances recorded against the deferred tax assets as of December 31, 2025 or 2024. 
 As of December 31, 2025, we had an income tax payable of $ 4.4 million included in accounts payable and other accrued liabilities. 
 As of December 31, 2024, we had an income tax receivable of $ 3.4 million, included in other current assets and an income tax payable of $ 5.7 million included in accounts payable and other accrued liabilities. 
 The statutes of limitation related to our consolidated Federal income tax returns are closed for all tax years up to and including 2021. The expiration of the statutes of limitation related to the various state income tax returns that we and our subsidiaries file varies by state. The 2020 through 2024 tax years generally remain subject to examination by most state tax authorities. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters. 
 During the years ended December 31, 2025, 2024, and 2023 we made income tax payments, net of refunds received, totaling $ 139.8 million, $ 78.7 million, and $ 191.9 million, respectively. 
 
 Income Taxes Paid For the Year Ended December 31, 
 2025 2024 2023 
 (In millions) 
 Federal $ 118.3 $ 63.7 $ 158.0 
 State (a) 21.6 15.0 33.9 
 Total $ 139.8 $ 78.7 $ 191.9 
 
 
 
 
 

 __________________________ 
 (a) The amount of income taxes paid during the year for individual states does not meet the 5% disaggregation threshold. 
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 17. OTHER LONG-TERM LIABILITIES 
 Other long-term liabilities consisted of the following: 
 
 As of December 31, 
 2025 2024 
 (In millions) 
 Unearned premiums $ 16.1 $ 18.0 
 Accrued finance and insurance chargebacks 24.2 24.3 
 Unclaimed property 16.6 13.8 
 
 
 
 Other 0.3 0.3 
 Other long-term liabilities $ 57.1 $ 56.4 

 
 18. SUPPLEMENTAL CASH FLOW INFORMATION 
 During the years ended December 31, 2025, 2024, and 2023, we made interest payments, including amounts capitalized, totaling $ 274.9 million, $ 269.6 million, and $ 149.3 million, respectively. Included in these interest payments are $ 82.8 million, $ 99.4 million, and $ 4.0 million, of floor plan interest payments for the years ended December 31, 2025, 2024, and 2023, respectively. 
 During the years ended December 31, 2025, 2024, and 2023, we transferred $ 507.5 million, $ 489.7 million, and $ 431.2 million, respectively, of loaner vehicles from other current assets to inventory in our consolidated balance sheets. The aforementioned amounts are included in changes in inventories in the operating activities section of the accompanying consolidated statement of cash flows. 
 
 19. LEASES 
 We lease real estate and equipment primarily under operating lease agreements. For leases with terms in excess of 12 months, we record a right-of-use ("ROU") asset and lease liability based on the present value of lease payments over the lease term. Escalation clauses, lease payments dependent on existing rates/indexes, renewal options, and purchase options are included within the determination of lease payments when appropriate. We have elected the practical expedient not to separate lease and non-lease components for all leases that qualify, except for information technology assets that are embedded within service agreements (such as software license arrangements). Leases are classified as either finance or operating, with classification impacting the pattern of expense recognition in the income statement. 
 When available, the implicit rate is utilized to discount lease payments to present value; however, substantially all of our leases do not provide a readily determinable implicit rate. Therefore, we estimate our incremental borrowing rate to discount the lease payments based on information available at lease commencement. 
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 Balance Sheet Presentation 
 
 As of December 31, 
 Leases Classification 2025 2024 
 (In millions) 
 Assets: 
 Current 
 Operating Assets held for sale $ 1.8 $ 1.9 
 Non-Current 
 Operating Operating lease right-of-use assets 240.6 220.1 
 Finance Property and equipment, net 8.3 8.4 
 Total right-of-use assets $ 250.8 $ 230.4 
 Liabilities: 
 Current 
 Operating Current maturities of operating leases $ 27.6 $ 28.1 
 Operating Liabilities held for sale 0.4 0.2 
 
 Non-Current 
 Operating Operating lease liabilities 221.6 200.0 
 Operating Liabilities held for sale 1.5 1.7 
 Finance Long-term debt 8.3 8.4 
 Total lease liabilities $ 259.3 $ 238.4 

 Lease Term and Discount Rate 
 
 As of December 31, 
 2025 2024 
 Weighted Average Lease Term - Operating Leases 13.2 years 12.8 years 
 Weighted Average Lease Term - Finance Lease 34.7 years 35.7 years 
 Weighted Average Discount Rate - Operating Leases 5.2 % 5.0 % 
 Weighted Average Discount Rate - Finance Lease 4.4 % 4.4 % 

 Lease Costs 
 The following table provides certain information related to the lease costs for finance and operating leases during the years ended December 31, 2025 and 2024. 
 
 For the Year Ended December 31, 
 2025 2024 
 (In millions) 
 Finance lease cost (Interest) $ 0.4 $ 0.4 
 Operating lease cost 42.7 40.0 
 Short-term lease cost 5.0 4.6 
 Variable lease cost 1.5 1.1 
 $ 49.6 $ 46.1 

 
 
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 Supplemental Cash Flow Information 
 The following table presents supplemental cash flow information for leases during the years ended December 31, 2025 and 2024. 
 
 For the Year Ended December 31, 
 2025 2024 
 (In millions) 
 Supplemental Cash Flow: 
 Cash paid for amounts included in the measurements of lease liabilities 
 Operating cash flows from finance lease $ 0.4 $ 0.4 
 Operating cash flows from operating leases $ 42.1 $ 38.4 
 
 
 Right-of-use assets obtained in exchange for new operating lease liabilities $ 53.1 $ 12.0 
 

 During the years ended December 31, 2025 and 2024, we obtained $ 53.1 million and $ 12.0 million, respectively, of right-of-use assets in exchange for new operating lease liabilities. The activity during the year ended December 31, 2025 was primarily as a result of a business combination. 
 The table below reconciles the undiscounted cash flows for each of the first five years and total of the remaining years to the finance lease liabilities and operating lease liabilities as of December 31, 2025, including leases related to liabilities associated with assets held for sale . 
 
 Finance Operating 
 (In millions) 
 2025 $ 0.4 $ 40.1 
 2026 0.4 34.7 
 2027 0.4 29.5 
 2028 0.4 27.1 
 2029 0.4 25.5 
 Thereafter 14.8 197.0 
 Total minimum lease payments $ 16.9 $ 353.9 
 Less: Amount of lease payments representing interest ( 8.6 ) ( 102.8 ) 
 Present value of future minimum lease payments $ 8.3 $ 251.1 
 Less: current obligations under leases (a) — ( 28.0 ) 
 Long-term lease obligation (b) $ 8.3 $ 223.1 

 __________________________ 
 (a) Includes $ 0.4 million of operating lease liabilities classified as liabilities associated with assets held for sale. 
 (b) Includes $ 1.5 million of operating lease liabilities classified as liabilities associated with assets held for sale. 
 Certain of our lease agreements include financial covenants and incorporate by reference the financial covenants set forth in the 2023 Senior Credit Facility. A breach of any of these covenants could immediately give rise to certain landlord remedies under our various lease agreements, the most severe of which include the following: (i) termination of the applicable lease and/or other leases with the same or an affiliated landlord under a cross-default provision, (ii) eviction from the premises; and (iii) the landlord having a claim for various damages. 
 
 20. SEGMENT INFORMATION 
 As of December 31, 2025, the Company had two reportable segments: (1) Dealerships and (2) TCA. Our dealership operations are organized by management into geographic region-based groups within the Dealerships segment. The operations of our F&I product provider is reflected within our TCA segment. Our Chief Operating Decision Maker (CODM) is our Chief Executive Officer who manages the business, regularly reviews financial information and allocates resources at the geographic region level for our dealerships and at the TCA segment level for our F&I product provider's operations. The geographic dealership group operating segments have been aggregated into one operating segment disclosed as the Dealerships reportable segment since their operations (i) have similar economic characteristics (our regions all have similar long-term average gross margins), (ii) offer similar products and services (all of our regions offer new and used vehicles, parts and service, and finance 
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 and insurance products), (iii) have similar customers, (iv) have similar distribution and marketing practices (all of our regions distribute products and services through dealership facilities that region to customers in similar ways), and (v) operate under similar regulatory environments. 
 TCA's vehicle protection products are sold through affiliated dealerships and the revenue from the related commissions is included in finance and insurance, net revenue in the Dealerships segment before consolidation. The corresponding claims expense incurred and the amortization of deferred acquisition costs is recorded as a cost of sales in the TCA segment. The Dealerships segment also provides vehicle repair and maintenance services to TCA customers in connection with claims related to TCA's vehicle protection products. The gross profit earned by our parts and service departments for work performed for TCA customers is reflected as a reduction of parts and service cost of sales in the accompanying consolidated statements of income. The costs incurred by TCA for work performed by our parts and service departments are included in finance and insurance cost of sales in the accompanying consolidated statements of income. 
 The CODM evaluates the performance of each reportable segment primarily through segment operating income. Segment operating income is derived from GAAP operating income, adjusted to exclude the effects of asset impairments and to include floor plan interest expense. Asset impairments are excluded as they typically do not arise from the ordinary course of operations. By removing these charges, segment operating income better represents the underlying operational performance of the segments. Floor plan interest expense is included in segment operating income because floor plan financing is a required component of the business model dictated by manufacturers. As such, it is an inherent and unavoidable cost of operations. Including floor plan interest expense ensures that the measurement of segment profitability reflects the operational realities and obligations associated with inventory financing, providing a clearer representation of the Dealerships segment’s performance. This approach ensures a consistent and meaningful evaluation of each segment's operational performance by normalizing results for items that may not directly reflect ongoing segment profitability. By utilizing segment operating income in this manner, the CODM can make informed decisions regarding resource allocation, evaluate the relative performance of individual segments, and monitor the effectiveness of strategic initiatives. 
 All floor plan interest expense and asset impairments are exclusively within the dealerships segment for the periods presented. Therefore, there are no reconciling items between segment operating income and income from operations for the TCA segment. 
 Goodwill acquired in the Herb Chambers acquisition, which closed in July 2025, of $ 341.7 million was allocated to the Dealerships segment. 
 The majority of TCA’s revenue arises from sales through our affiliated dealerships. Intercompany profits and losses are eliminated in consolidation. 
 The significant expense categories and amounts are consistent with the segment-level information that is regularly provided to the CODM. Certain intersegment expenses are included within the amounts shown. Rent and related expenses include rent expense, utilities, property and casualty insurance, real estate tax and personal property tax. Other segment items for the TCA segment relate to selling, general and administrative expenses. 
 Reportable segment financial information for the years ended December 31, 2025, 2024 and 2023 is as follows: 
 
 
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 For the year ended December 31, 2025 
 Dealerships TCA Total 
 (In millions) 
 Revenue from external customers $ 17,672.9 $ 326.1 $ 17,999.0 
 Intersegment revenue 
 F&I 235.1 — 235.1 
 Parts and service 36.8 — 36.8 
 Total intersegment revenue 271.9 — 271.9 
 $ 17,944.8 $ 326.1 $ 18,270.9 
 Reconciliation of revenue 
 Elimination of intersegment revenue ( 271.9 ) 
 Total consolidated revenue $ 17,999.0 
 
 Less: 
 Cost of sales 
 New vehicle 8,874.2 — 
 Used vehicle 4,966.3 — 
 Parts and service 1,071.2 — 
 Finance and insurance — 239.0 
 Selling, general and administrative expenses 
 Personnel costs 1,299.3 — 
 Rent and related expenses 131.6 — 
 Advertising 68.8 — 
 Other selling, general and administrative expense 501.4 — 
 Other segment items — 7.2 
 Depreciation and amortization 82.3 0.2 
 Floor plan interest expense 91.2 — 
 Segment operating income $ 858.6 $ 79.8 $ 938.4 
 
 Reconciliation of segment operating income 
 Intersegment eliminations 
 Total intersegment revenue eliminations ( 271.9 ) 
 Total intersegment cost of sales eliminations 223.3 
 Deferral of SG&A expense (related to capitalized contracts offset by amortization) 20.7 
 Total intersegment eliminations ( 27.9 ) 
 Asset impairments ( 141.0 ) 
 Other interest expense, net ( 187.5 ) 
 Gain on dealership divestitures, net 80.2 
 Income before income taxes $ 662.2 

 
 
 
 As of and for the year ended December 31, 2025 
 Dealerships TCA Total Reportable Segments Eliminations Total 
 (In millions) 
 Capital expenditures $ 205.3 $ — $ 205.3 $ — $ 205.3 
 Other interest expense $ 187.5 $ — $ 187.5 $ — $ 187.5 
 Amortization of deferred acquisition costs $ — $ 187.3 $ 187.3 $ ( 187.3 ) $ — 
 Total assets $ 10,389.5 $ 1,024.3 $ 11,413.8 $ 204.4 $ 11,618.2 

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 For the year ended December 31, 2024 
 Dealerships TCA Total 
 (In millions) 
 Revenue from external customers $ 16,885.0 $ 303.6 $ 17,188.6 
 Intersegment revenue 
 F&I 183.0 — 183.0 
 Parts and service 39.5 — 39.5 
 Total intersegment revenue 222.5 — 222.5 
 $ 17,107.5 $ 303.6 $ 17,411.1 
 Reconciliation of revenue 
 Elimination of intersegment revenue ( 222.5 ) 
 Total consolidated revenue $ 17,188.6 
 
 Less: 
 Cost of sales 
 New vehicle 8,209.3 — 
 Used vehicle 4,972.7 — 
 Parts and service 1,043.0 — 
 Finance and insurance — 223.4 
 Selling, general and administrative expenses 
 Personnel costs 1,256.2 — 
 Rent and related expenses 142.3 — 
 Advertising 61.8 — 
 Other selling, general and administrative expense 441.0 — 
 Other segment items — 7.0 
 Depreciation and amortization 74.6 0.4 
 Floor plan interest expense 89.9 — 
 Segment operating income $ 816.7 $ 72.8 $ 889.5 
 
 Reconciliation of segment operating income 
 Intersegment eliminations 
 Total intersegment revenue eliminations ( 222.5 ) 
 Total intersegment cost of sales eliminations 208.5 
 Deferral of SG&A expense (related to capitalized contracts offset by amortization) 19.7 
 Total intersegment eliminations 5.8 
 Asset impairments ( 149.5 ) 
 Other interest expense, net ( 179.1 ) 
 Gain on dealership divestitures, net 8.6 
 Income before income taxes $ 575.3 

 
 As of and for the year ended December 31, 2024 
 Dealerships TCA Total Reportable Segments Eliminations Total 
 (In millions) 
 Capital expenditures $ 308.2 $ — $ 308.2 $ — $ 308.2 
 Other interest expense $ 179.1 $ — $ 179.1 $ — $ 179.1 
 Amortization of deferred acquisition costs $ — $ 170.2 $ 170.2 $ ( 170.2 ) $ — 
 Total assets $ 9,227.6 $ 1,049.4 $ 10,277.0 $ 60.1 $ 10,337.0 

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 For the year ended December 31, 2023 
 Dealerships TCA Total 
 (In millions) 
 Revenue from external customers $ 14,517.5 $ 285.2 $ 14,802.7 
 Intersegment revenue 
 F&I 146.8 — 146.8 
 Parts and service 34.6 — 34.6 
 Total intersegment revenue 181.5 — 181.5 
 $ 14,699.0 $ 285.2 $ 14,984.2 
 Reconciliation of revenue 
 Elimination of intersegment revenue ( 181.5 ) 
 Total consolidated revenue $ 14,802.7 
 
 Less: 
 Cost of sales 
 New vehicle 6,927.8 — 
 Used vehicle 4,150.2 — 
 Parts and service 949.9 — 
 Finance and insurance — 208.1 
 Selling, general and administrative expenses 
 Personnel costs 1,106.5 — 
 Rent and related expenses 118.7 — 
 Advertising 47.3 — 
 Other selling, general and administrative expense 366.0 — 
 Other segment items — 7.4 
 Depreciation and amortization 67.1 0.7 
 Floor plan interest expense 9.6 — 
 Segment operating income $ 955.9 $ 69.0 $ 1,025.0 
 
 Reconciliation of segment operating income 
 Intersegment eliminations 
 Total intersegment revenue eliminations ( 181.5 ) 
 Total intersegment cost of sales eliminations 189.1 
 Deferral of SG&A expense (related to capitalized contracts offset by amortization) 28.5 
 Total intersegment eliminations 36.1 
 Asset impairments ( 117.2 ) 
 Other interest expense, net ( 156.1 ) 
 Gain on dealership divestitures, net 13.5 
 Income before income taxes $ 801.3 

 
 As of and for the year ended December 31, 2023 
 Dealerships TCA Total Reportable Segments Eliminations Total 
 (In millions) 
 Capital expenditures $ 142.3 $ — $ 142.3 $ — $ 142.3 
 Other interest expense $ 156.1 $ — $ 156.1 $ — $ 156.1 
 Amortization of deferred acquisition costs $ — $ 161.9 $ 161.9 $ ( 155.9 ) $ 6.0 
 Total assets $ 9,199.4 $ 913.9 $ 10,113.3 $ 46.1 $ 10,159.4 

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 21. COMMITMENTS AND CONTINGENCIES 
 On August 3, 2022, we received a Civil Investigative Demand (“CID”) from the FTC requesting information and documents concerning the Company’s corporate structure and operation of six of its dealerships. We responded to the CID by producing information and documents for the period August 1, 2019 to April 24, 2023. On February 8, 2024, the FTC staff counsel sent to us a proposed consent order and draft complaint, alleging that the Company and three of our dealerships had violated Section 5 of the Federal Trade Commission Act (“FTC Act”) and certain provisions of the Equal Credit Opportunity Act in connection with the sale of add-on products (e.g., vehicle service contracts, maintenance plans, etc.), and advising that it would recommend the filing of an enforcement action if the Company did not settle the FTC’s claims. On August 16, 2024, after discussions with the FTC stalled, the FTC initiated an administrative proceeding by filing an enforcement action against the Company. On October 4, 2024, the Company filed suit against the FTC in the United States District Court for the Northern District of Texas, seeking to enjoin the FTC’s administrative proceeding on the ground that the administrative proceeding was unconstitutional. Among other things, the Company’s lawsuit asserts that the FTC’s administrative proceeding violates the Company’s constitutional rights by denying it the right to a jury trial and by allowing the FTC to serve as both prosecutor and judge in the same proceeding. The Company’s lawsuit also contends that FTC commissioners and in-house administrative law judges are effectively insulated from removal by the President in contravention of the Constitution’s requirements. The FTC’s administrative proceeding and the Company’s lawsuit remain pending. While the Company disputes the FTC’s allegations, we are at this time unable to reasonably predict the possible outcome of this matter, or provide a reasonably possible range of loss, if any. There can be no assurance that the Company will succeed in either the FTC’s administrative proceeding against the Company or in the Company’s lawsuit against the FTC, and the FTC’s allegations, whether meritorious or not, may adversely affect our ability to attract customers, result in the loss of existing customers, harm our reputation and cause us to incur defense costs and other expenses. 
 Our dealerships are party to dealer and framework agreements with applicable vehicle manufacturers. In accordance with these agreements, each dealership has certain rights and is subject to restrictions typical in the industry. The ability of these manufacturers to influence the operations of the dealerships or the loss of any of these agreements could have a materially negative impact on our operating results. 
 In some instances, manufacturers may have the right, and may direct us, to implement costly capital improvements to dealerships as a condition to entering into, renewing, or extending franchise agreements with them. Manufacturers also typically require that their franchises meet specific standards of appearance. These factors, either alone or in combination, could cause us to use our financial resources on capital projects that we might not have planned for or otherwise determined to undertake. 
 From time to time, we and our dealerships are or may become involved in various claims relating to, and arising out of, our business and our operations. These claims may involve, but not be limited to, financial and other audits by vehicle manufacturers or lenders and certain federal, state, and local government authorities, which have historically related primarily to (i) incentive and warranty payments received from vehicle manufacturers, or allegations of violations of manufacturer agreements or policies, (ii) compliance with lender rules and covenants, and (iii) payments made to government authorities relating to federal, state, and local taxes, as well as compliance with other government regulations. Claims may also arise through litigation, government proceedings, and other dispute resolution processes. Such claims, including class actions, could relate to, but may not be limited to, the practice of charging administrative fees and other fees and commissions, employment-related matters, truth-in-lending and other dealer assisted financing obligations, contractual disputes, actions brought by governmental authorities, and other matters. We evaluate pending and threatened claims and establish loss contingency reserves based upon outcomes we currently believe to be probable and reasonably estimable. 
 We believe we have adequately accrued for the potential impact of loss contingencies that are probable and reasonably estimable. Based on our review of the various types of claims currently known to us, there is no indication of material reasonably possible losses in excess of amounts accrued in the aggregate. We currently do not anticipate that any known claim will materially adversely affect our financial condition, liquidity, or results of operations. However, the outcome of any matter cannot be predicted with certainty, and an unfavorable resolution of one or more matters presently known or arising in the future could have a material adverse effect on our financial condition, liquidity, or results of operations. 
 A significant portion of our business involves the sale of vehicles, parts, or vehicles composed of parts that are manufactured outside the United States. As a result, our operations are subject to customary risks of importing merchandise, including fluctuations in the relative values of currencies, import duties, exchange controls, trade restrictions, work stoppages and general political and socio-economic conditions in foreign countries. The United States or the countries from which our products are imported may, from time to time, impose new quotas, duties, tariffs, or other restrictions; or adjust presently prevailing quotas, duties, or tariffs, which may affect our operations and our ability to purchase imported vehicles and/or parts at reasonable prices. 
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 Substantially all of our facilities are subject to federal, state and local provisions regarding the discharge of materials into the environment. Compliance with these provisions has not had, nor do we expect such compliance to have, any material effect upon our capital expenditures, net earnings, financial condition, liquidity or competitive position. We believe that our current practices and procedures for the control and disposition of such materials comply with applicable federal, state and local requirements. No assurances can be provided, however, that future laws or regulations, or changes in existing laws or regulations, would not require us to expend significant resources in order to comply therewith. 
 We had $ 25.2 million of letters of credit outstanding as of December 31, 2025, which are required by certain of our insurance providers. In addition, as of December 31, 2025, we maintained a $ 24.7 million surety bond line in the ordinary course of our business. Our letters of credit and surety bond line are considered to be off-balance sheet arrangements. 
 Our other material commitments include (i) floor plan notes payable, (ii) operating leases, (iii) long-term debt and (iv) interest on long-term debt, as described elsewhere herein. 
 
 22. SHARE-BASED COMPENSATION AND EMPLOYEE BENEFIT PLANS 
 On March 13, 2012, our Board of Directors, upon the recommendation of our Compensation and Human Resources Committee, approved the 2012 Equity Incentive Plan (the "2012 Plan"). On April 18, 2012, our shareholders approved the 2012 Plan, which replaced our previous equity incentive plan. The 2012 Plan expired on March 13, 2022 and provided for the grant of options, performance share units, restricted share units and shares of restricted stock to our directors, officers and employees in the total amount of 1.5 million shares. 
 On April 17, 2019, the stockholders of the Company approved the Asbury Automotive Group, Inc. 2019 Equity and Incentive Compensation Plan (the "2019 Plan") and authorized a total of 1,590,000 shares of common stock for issuance under the 2019 Plan ("Plan Shares"). The Plan Shares include 641,363 shares of common stock which remained unissued under the 2012 Plan. No further grants of awards will be made under the 2012 Plan; however outstanding awards under the 2012 Plan will continue in effect in accordance with their terms and conditions. There were approximately 1.2 million shares available for grant in accordance with the 2019 Plan as of December 31, 2025. 
 We issue shares of our common stock upon the vesting of performance share units or restricted share units. These shares are issued from our authorized and not outstanding common stock. In addition, in connection with the vesting of equity-based awards, we repurchase a portion of the shares issued equal to the amount of employee income tax withholding. 
 We recognized $ 27.7 million ($ 7.1 million tax benefit), $ 26.7 million ($ 6.7 million tax benefit) and $ 23.5 million ($ 5.8 million tax benefit) in share-based compensation expense for the years ended December 31, 2025, 2024 and 2023, respectively. As of December 31, 2025, there was $ 20.7 million of total unrecognized share-based compensation expense related to non-vested share-based awards granted under the 2012 Plan and 2019 Plan, and the weighted average period over which it is expected to be recognized is 1.5 years. Further, we expect to recognize $ 3.0 million of this expense in 2026, $ 11.1 million in 2027, and $ 6.6 million in 2028. 
 Performance Share Units 
 During the year ended December 31, 2025, the Compensation and Human Resources Committee of the Board of Directors approved the grant of up to 64,309 performance share units, which represents 150 % of the target award. Performance share units provide an opportunity for the employee-recipient to receive a number of shares of our common stock based on our performance during a specified period following the grant as measured against objective performance goals as determined by the Compensation and Human Resources Committee of our Board of Directors. The actual number of units earned may range from 0 % to 150 % of the target number of units depending upon achievement of the performance goals. Performance share units vest in three equal annual installments with one-third of the award vesting on each of the (i) later of the first anniversary of the grant date, or the date the Compensation and Human Resources Committee determines the actual award, (ii) second anniversary of the grant date and (iii) third anniversary of the grant date. Upon vesting, each performance share unit equals one share of common stock of the Company. Compensation cost for performance share units is based on the closing price of our common stock on the date of grant and the ultimate performance level achieved and is recognized on a graded basis over the three-year vesting period. 
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 The following table summarizes information about performance share units for 2025: 
 Shares Weighted Average Grant Date
 Fair Value 
 Non-vested at January 1, 2025 118,537 $ 214.87 
 Granted 64,309 294.48 
 Vested ( 38,142 ) 207.74 
 Forfeited or unearned ( 53,468 ) 219.24 
 Non-vested at December 31, 2025 91,236 $ 271.46 

 The weighted average grant-date fair value of performance share units and total fair value of performance share units vested are summarized in the following table: 
 For the Year Ended December 31, 
 2025 2024 2023 
 Weighted average grant-date fair value of performance share units granted $ 294.48 $ 216.89 $ 232.24 
 Total fair value of performance share units vested (in millions) $ 7.9 $ 7.9 $ 7.0 

 R estricted Share Units 
 During the year ended December 31, 2025, the Compensation and Human Resources Committee of the Board of Directors approved the grant of 79,952 shares of restricted share units. Restricted share units generally vest in three equal annual installments commencing on the first anniversary of the grant date. Compensation cost for restricted share units is based on the closing price of our common stock on the date of grant and is recognized on a straight-line basis over the three-year vesting period. 
 The following table summarizes information about restricted share units for 2025: 
 Shares Weighted Average Grant Date
 Fair Value 
 Non-vested at January 1, 2025 112,889 $ 216.84 
 Granted 79,952 288.37 
 Vested ( 83,603 ) 231.32 
 Forfeited ( 6,885 ) 235.09 
 Non-vested at December 31, 2025 102,353 $ 259.65 

 The weighted average grant-date fair value of restricted share units and total fair value of restricted share units vested are summarized in the following table: 
 
 For the Year Ended December 31, 
 2025 2024 2023 
 Weighted average grant-date fair value of restricted share units granted $ 288.37 $ 216.09 $ 231.70 
 Total fair value of restricted share units vested (in millions) $ 19.3 $ 16.9 $ 13.1 

 
 
 Restricted Stock Awards 
 Restricted stock awards vest in three equal annual installments commencing on the first anniversary of the grant date. Compensation cost for restricted stock awards is based on the closing price of our common stock on the date of grant and is recognized on a straight-line basis over the three-year vesting period. The Company's most recent grant of restricted stock awards occurred in 2019 and has since been replaced with restricted share units. As of December 31, 2024 all restricted stock awards have vested. 
 The weighted average grant-date fair value of restricted stock awards and total fair value of restricted stock awards vested are summarized in the following table: 
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 For the Year Ended December 31, 
 2025 2024 2023 
 Weighted average grant-date fair value of restricted stock granted $ — $ — $ — 
 Total fair value of restricted stock awards vested (in millions) $ — $ 0.2 $ 0.2 

 Employee Retirement Plan 
 The Company sponsors the Asbury Automotive Retirement Savings Plan (the "Retirement Savings Plan"), a 401(k) plan, for eligible employees. Employees electing to participate in the Retirement Savings Plan may contribute up to 75 % of their annual eligible compensation. IRS rules limited total participant contributions during 2025 to $ 23,500 , or $ 31,000 if age 50 or more. After one year of employment, we match 50 % of employees' contributions up to 4 % of their eligible compensation. Employer contributions vest on a graded basis over 4 years after the date of hire. The Company's expense related to employer matching contributions totaled $ 19.2 million, $ 18.4 million and, $ 16.0 million for the years ended December 31, 2025, 2024 and 2023, respectively. 
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 Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure 
 None.
ASBURY AUTOMOTIVE GROUP INC 10-K

Item 8. Financial Statements and Supplementary Data
