Company: GPI
Filing Date: 2025-02-14
Form Type: 10-K
Source: 0001031203-25-000013
Chunk: 131

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-02-14
Form: 10-K
Item: Item 7
Chunk 131
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$(10.0)(100.0)%Floorplan interest expense$108.5 $64.1 $44.4 69.3 %Other interest expense, net$141.3 $99.8 $41.5 41.6 %Provision for income taxes$161.5 $198.2 $(36.7)(18.5)%

Depreciation and Amortization Expense

Depreciation and amortization expense for the Current Year was higher compared to the Prior Year, primarily driven by acquired property and equipment in our U.S. and U.K. regions, as we continue to strategically add dealership related real estate and facilities to our investment portfolio and make improvements to our existing facilities intended to enhance the profitability of our dealerships and improve the overall customer experience. 

Impairment of Assets

 During the Current Year and the Prior Year, we recorded no goodwill impairments. During the Current Year and Prior Year we recorded impairments of franchise rights of $28.2 million and $25.1 million for franchise agreements in the U.S. region, respectively. 

We review long-lived assets including property and equipment and ROU assets for impairment at the lowest level of identifiable cash flows whenever there is evidence that the carrying value of these assets may not be recoverable (i.e., triggering events). During the Current Year, there was no asset impairment charges associated with property and equipment and ROU assets. During the Prior Year, we recorded total property and equipment and ROU asset impairment charges of $6.8 million in the U.S. region. 

During the Current Year, we recognized $4.8 million in intangible asset impairment associated with assets held for sale.

Refer to Note 13. Intangible Franchise Rights and Goodwill, Note 11. Property and Equipment, Net and Note 12. Leases within our Notes to Consolidated Financial Statements for further discussion of our assessment for impairments. 

Restructuring Charges

During the Current Year, we incurred $16.7 million of restructuring charges. Restructuring charges primarily consist of planned workforce realignment, strategic closing of certain facilities and systems integrations, among other efforts to increase operational efficiency and profitability in connection with the integration of the Inchcape Retail acquisition with our U.K. business. 

Refer to Note 5. Restructuring within our Notes to Consolidated Financial Statements for further discussion of our restructuring plan. 

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Other Operating Income

During the Current