| Segment Information |
Segment InformationASC 280, Segment Reporting, requires reporting of segment information that is consistent with the manner in which the chief operating decision maker operates and views the Company. Prior to the spin-off of IAA, our operations were grouped into three operating segments: ADESA Auctions, IAA and AFC, which also served as our reportable business segments. Beginning in the second quarter of 2019, after the completion of the spin-off, the Company began operating under two reportable business segments: ADESA Auctions and AFC. These reportable business segments offer different services and have fundamental differences in their operations. Results of the former IAA segment and spin-related costs are now reported as discontinued operations (see Note 4). ADESA Auctions encompasses all on-premise and off-premise wholesale marketplaces throughout North America (U.S., Canada and Mexico) and Europe. Beginning in November 2020, the ADESA Auctions segment includes BacklotCars, an app and web-based dealer-to-dealer wholesale vehicle platform. Beginning in 2019, the ADESA Auctions segment includes COTW, an online auction company serving the wholesale vehicle sector in Continental Europe. ADESA Auctions relates to used vehicle remarketing, including auction services, remarketing, or make ready services and all are interrelated, synergistic elements along the auto remarketing chain. AFC is primarily engaged in the business of providing short-term, inventory-secured financing to independent, used vehicle dealers. Prior to December 2020, AFC also included providing independent used vehicle dealer customers with vehicle service contracts. AFC conducts business primarily at or near wholesale used vehicle auctions in the U.S. and Canada. Historically, the costs and expenses of the holding company were reported separately from the reportable segments and included expenses associated with the corporate offices, such as salaries, benefits and travel costs for the corporate management team, certain human resources, information technology and accounting costs, and certain insurance, treasury, legal and risk management costs. Holding company interest expense included the interest expense incurred on finance leases and the corporate debt structure. Intercompany charges related primarily to interest on intercompany debt or receivables and certain administrative costs allocated by the holding company. Due to the spin-off of IAA in 2019 and the Company's transition from physical marketplaces to digital marketplaces, the Company has simplified its business and operations. Corporate expenses, previously reported as holding company expenses, are now included in the segments. Certain known expenses (e.g., information technology costs) were recorded directly to the ADESA and AFC segments. Interest expense previously reported by the holding company has been recorded in the ADESA segment. The residual shared services expenses were recorded at ADESA and allocated to AFC based on revenue and employee headcount. Holding company amounts reported in the segment results in the consolidated financial statements prior to December 31, 2020 have been reclassified to conform to the current presentation. Financial information regarding our reportable segments is set forth below as of and for the year ended December 31, 2020 (in millions): | | | | | | | | | | | | | | | | | | | ADESA
Auctions | | AFC | | Consolidated | | Operating revenues | $ | 1,920.1 | | | $ | 267.6 | | | $ | 2,187.7 | | | Operating expenses | | | | | | | Cost of services (exclusive of depreciation and amortization) | 1,205.7 | | | 79.1 | | | 1,284.8 | | | Selling, general and administrative | 508.8 | | | 36.6 | | | 545.4 | | | Depreciation and amortization | 178.8 | | | 12.5 | | | 191.3 | | | Goodwill and other intangibles impairment | 29.8 | | | — | | | 29.8 | | | Total operating expenses | 1,923.1 | | | 128.2 | | | 2,051.3 | | | Operating profit (loss) | (3.0) | | | 139.4 | | | 136.4 | | | Interest expense | 89.8 | | | 39.1 | | | 128.9 | | | Other (income) expense, net | 2.2 | | | (0.1) | | | 2.1 | | | Intercompany expense (income) | 1.1 | | | (1.1) | | | — | | | Income (loss) from continuing operations before income taxes | (96.1) | | | 101.5 | | | 5.4 | | | Income taxes | (17.0) | | | 21.9 | | | 4.9 | | | Net income (loss) from continuing operations | $ | (79.1) | | | $ | 79.6 | | | $ | 0.5 | | | Total assets | $ | 4,515.3 | | | $ | 2,282.9 | | | $ | 6,798.2 | | | Capital expenditures | $ | 95.5 | | | $ | 5.9 | | | $ | 101.4 | |
Financial information regarding our reportable segments is set forth below as of and for the year ended December 31, 2019 (in millions): | | | | | | | | | | | | | | | | | | | ADESA
Auctions | | AFC | | Consolidated | | Operating revenues | $ | 2,429.0 | | | $ | 352.9 | | | $ | 2,781.9 | | | Operating expenses | | | | | | | Cost of services (exclusive of depreciation and amortization) | 1,520.7 | | | 96.4 | | | 1,617.1 | | | Selling, general and administrative | 621.1 | | | 40.9 | | | 662.0 | | | Depreciation and amortization | 175.5 | | | 13.2 | | | 188.7 | | | Total operating expenses | 2,317.3 | | | 150.5 | | | 2,467.8 | | | Operating profit (loss) | 111.7 | | | 202.4 | | | 314.1 | | | Interest expense | 125.5 | | | 64.0 | | | 189.5 | | | Other (income) expense, net | (7.3) | | | (0.4) | | | (7.7) | | | Loss on extinguishment of debt | 2.2 | | | — | | | 2.2 | | | Intercompany expense (income) | 5.0 | | | (5.0) | | | — | | | Income (loss) from continuing operations before income taxes | (13.7) | | | 143.8 | | | 130.1 | | | Income taxes | (0.1) | | | 37.8 | | | 37.7 | | | Net income (loss) from continuing operations | $ | (13.6) | | | $ | 106.0 | | | $ | 92.4 | | | Total assets | $ | 4,014.2 | | | $ | 2,567.0 | | | $ | 6,581.2 | | | Capital expenditures | $ | 150.2 | | | $ | 11.4 | | | $ | 161.6 | |
Financial information regarding our reportable segments is set forth below as of and for the year ended December 31, 2018 (in millions): | | | | | | | | | | | | | | | | | | | ADESA
Auctions | | AFC | | Consolidated | | Operating revenues | $ | 2,101.9 | | | $ | 340.9 | | | $ | 2,442.8 | | | Operating expenses | | | | | | | Cost of services (exclusive of depreciation and amortization) | 1,230.8 | | | 90.7 | | | 1,321.5 | | | Selling, general and administrative | 563.0 | | | 45.8 | | | 608.8 | | | Depreciation and amortization | 153.6 | | | 18.8 | | | 172.4 | | | Total operating expenses | 1,947.4 | | | 155.3 | | | 2,102.7 | | | Operating profit (loss) | 154.5 | | | 185.6 | | | 340.1 | | | Interest expense | 131.7 | | | 59.5 | | | 191.2 | | | Other (income) expense, net | (2.7) | | | (0.3) | | | (3.0) | | | Intercompany expense (income) | 3.1 | | | (3.1) | | | — | | | Income (loss) from continuing operations before income taxes | 22.4 | | | 129.5 | | | 151.9 | | | Income taxes | 2.9 | | | 31.4 | | | 34.3 | | | Net income (loss) from continuing operations | $ | 19.5 | | | $ | 98.1 | | | $ | 117.6 | | | Total assets | $ | 3,250.9 | | | $ | 2,448.5 | | | $ | 5,699.4 | | | Capital expenditures | $ | 121.9 | | | $ | 9.4 | | | $ | 131.3 | |
Geographic Information Our foreign operations include Canada, Mexico, Continental Europe and the U.K. Most of our operations outside the U.S. are in Canada. Approximately 58%, 62% and 96% of our foreign operating revenues were from Canada for the year ended December 31, 2020, 2019 and 2018, respectively. Information regarding the geographic areas of our operations is set forth below (in millions): | | | | | | | | | | | | | | | | | | | | Year Ended December 31, | | | 2020 | | 2019 | | 2018 | | Operating revenues | | | | | | | U.S. | $ | 1,719.2 | | | $ | 2,267.5 | | | $ | 2,078.2 | | | Foreign | 468.5 | | | 514.4 | | | 364.6 | | | $ | 2,187.7 | | | $ | 2,781.9 | | | $ | 2,442.8 | |
| | | | | | | | | | | | | | December 31, | | | 2020 | | 2019 | | Long-lived assets | | | | | U.S. | $ | 3,198.6 | | | $ | 2,877.8 | | | Foreign | 424.4 | | | 458.9 | | | $ | 3,623.0 | | | $ | 3,336.7 | |
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