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

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-10-28
Form: 10-Q
Item: Part I, Item 1
Chunk 28
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 Financial FacilityThe Company has a master loan agreement with General Motors Financial for financing of new GM vehicles (the “GM Financial Facility”). The GM Financial Facility bears interest at the U.S. prime rate less 100 basis points. As of September 30, 2025, the GM Financial Facility had a total borrowing capacity of $348.1 million. Other Manufacturer FacilitiesThe Company has other credit facilities in the U.S. and the U.K., respectively, with financial institutions affiliated with manufacturers for financing of new, used and rental vehicle inventories. As of September 30, 2025, borrowings outstanding under these facilities totaled $417.8 million, comprised of $200.7 million in the U.S. and $217.2 million in the U.K., with annual interest rates ranging from approximately 1% to 8%. Interest rates on the Company’s manufacturer facilities vary across manufacturers.Offset AccountsOffset accounts consist of immediately available cash used to pay down the U.S. Floorplan Line, FMCC Facility and GM Financial Facility, and therefore offset the respective outstanding balances in the Company’s Condensed Consolidated Balance Sheets. The offset accounts are the Company’s primary options for the short-term investment of excess cash.In May 2025, the Company entered into an addendum to the master loan agreement with General Motors Financial and established an offset account under the GM Financial Facility (the “GM Floorplan Offset”). As of September 30, 2025, the balance for the GM Floorplan Offset was $—.

12. CASH FLOW INFORMATION 

Non-Cash ActivitiesThe accrual for capital expenditures was $10.7 million and $9.0 million as of September 30, 2025 and December 31, 2024, respectively.Interest and Income Taxes PaidCash paid for interest, including the monthly settlement of the Company’s interest rate swaps, was $212.2 million and $169.7 million for the nine months ended September 30, 2025 and 2024, respectively. Refer to Note 8. Financial Instruments and Fair Value Measurements for further discussion of the Company’s interest rate swaps.Cash paid for income taxes, net of refunds, was $85.4 million and $114.7 million for the nine months ended September 30, 2025 and 2024, respectively.

13. COMMITMENTS AND CONTINGENCIES

From time to time, the Company or its dealerships are named in various types of litigation involving customer claims, employment matters, class