Company: GPI
Filing Date: 2025-10-28
Form Type: 10-Q
Source: 0001031203-25-000061
Chunk: 125

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 2
Chunk 125
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 $1.6 100.0 %Floorplan interest expense$23.7 $31.1 $(7.5)(24.0)%Other interest expense, net$48.0 $39.8 $8.2 20.6 %Provision for income taxes$23.0 $42.5 $(19.4)(45.7)%Nine Months Ended September 30,20252024Increase/ (Decrease)% ChangeDepreciation and amortization expense$89.6 $81.6 $8.0 9.8 %Asset impairments$124.6 $— $124.6 100.0 %Restructuring Charges$20.3 $— $20.3 100.0 %Floorplan interest expense$77.0 $76.3 $0.6 0.8 %Other interest expense, net$130.4 $102.5 $27.9 27.3 %Provision for income taxes $106.8 $133.5 $(26.7)(20.0)%

Depreciation and Amortization Expense

Depreciation and amortization expense for the Current Quarter and Current Year was higher compared to the Prior Year Quarter and 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. 

Asset Impairments

Asset impairments totaled $123.9 million in the Current Quarter and $124.6 million in the Current Year. During the Current Year, we recognized goodwill, intangible franchise rights and fixed asset impairment charges of $93.0 million, $23.9 million and $7.7 million, respectively, primarily in the U.K. reporting unit.

Refer to Note 4. Intangible Franchise Rights and Goodwill within our Notes to Condensed Consolidated Financial Statements for further discussion.

Restructuring Charges

During the Current Quarter and Current Year, we incurred $1.6 million and $20.3 million of restructuring charges in the U.K., respectively. 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