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Table of Contents
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

effective date. We are currently evaluating the method of adoption and the impact of the provisions of the accounting standard update.
Presentation of Debt Issuance Costs
In April 2015, the FASB issued an accounting standard update to simplify the presentation of debt issuance costs. The amendments in this accounting
standard update require debt issuance costs be presented on the balance sheet as a direct reduction from the carrying amount of the related debt liability. In
August 2015, the FASB issued an accounting standard update that allows the presentation of debt issuance costs related to line-of-credit arrangements as an
asset on the balance sheet under the simplified guidance, regardless of whether there are any outstanding borrowings on the related arrangements. The
amendments in these accounting standard updates are to be applied retrospectively and are effective for interim and annual reporting periods beginning after
December 15, 2015. The adoption of these accounting standard updates will not have a material impact on our balance sheet.
Balance Sheet Classification of Deferred Taxes
In November 2015, the FASB issued an accounting standard update to simplify the presentation of deferred income taxes. The amendments in this
accounting standard update require that deferred tax liabilities and assets be classified as noncurrent in a classified statement of financial position. The
amendments in these accounting standard updates may be applied either prospectively to all deferred tax liabilities and assets or retrospectively to all periods
presented and are effective for interim and annual reporting periods beginning after December 15, 2016. Earlier application is permitted for all entities as of
the beginning of an interim or annual reporting period. We adopted this accounting standard update prospectively effective October 1, 2015, and prior
periods were not retrospectively adjusted. See Note 11 of the Notes to Consolidated Financial Statements for more information.

The components of receivables, net of allowance for doubtful accounts, at December 31 are as follows:
Trade receivables $ 133.6
$ 125.0
Manufacturer receivables 221.4
198.3
Other 38.0
37.9
393.0
361.2
Less: allowances for doubtful accounts (4.5)
(3.7)
388.5
357.5
Contracts-in-transit and vehicle receivables 508.0
460.3
Income tax refundable (See Note 11) 11.7
—
Receivables, net $ 908.2
$ 817.8
Trade receivables represent amounts due for parts and services that have been delivered or sold, excluding amounts due from manufacturers, as well
receivables from finance organizations for commissions on the sale of financing products. Manufacturer receivables represent amounts due from
manufacturers for holdbacks, rebates, incentives, floorplan assistance, and warranty claims. Contracts-in-transit and vehicle receivables primarily represent
receivables from financial institutions for the portion of the vehicle sales price financed by our customers.
We evaluate our receivables for collectability based on the age of receivables and past collection experience.
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