Company: GPI
Filing Date: 2025-07-24
Form Type: 10-Q
Source: 0001031203-25-000049
Chunk: 120

Company: GROUP 1 AUTOMOTIVE INC
Filing Date: 2025-07-24
Form: 10-Q
Item: Part I, Item 2
Chunk 120
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 7.1 %Other interest expense, net$42.7 $33.4 $9.3 27.9 %Provision for income taxes$44.0 $45.2 $(1.1)(2.5)%Six Months Ended June 30,20252024Increase/ (Decrease)% ChangeDepreciation and amortization expense$58.0 $52.0 $6.0 11.5 %Asset impairments$0.8 $— $0.8 100.0 %Restructuring Charges$18.7 $— $18.7 100.0 %Floorplan interest expense$53.3 $45.2 $8.1 18.0 %Other interest expense, net$82.5 $62.7 $19.8 31.5 %Provision for income taxes $83.8 $91.0 $(7.2)(8.0)%

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 $0.4 million in the Current Quarter and $0.8 million in the Current Year. During the Current Year, we recognized an impairment charge of $2.7 million associated with the termination of certain franchises in the U.K., partially offset by a $2.3 million gain recognized as a result of an increase in value during the Current Year of previously impaired assets held for sale.

Restructuring Charges

During the Current Quarter and Current Year, we incurred $7.6 million and $18.7 million of restructuring charges, 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 with the integration of the Inchcape Retail acquisition with our U.K. business.

Refer to Note 4. Restructuring within our Notes to Condensed Consolidated Financial Statements for further discussion of our restructuring plan.

41

Floorplan Interest Expense