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Accounts Receivable
 3 Months Ended
Mar. 31, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]  
Accounts Receivable Accounts Receivable
Accounts receivable consisted of the following:
(in millions)March 31, 2022December 31, 2021
Contracts in transit$367.3 $304.9 
Trade receivables128.5 125.5 
Vehicle receivables126.5 106.6 
Manufacturer receivables140.5 120.5 
Auto loan and lease receivables1,036.4 829.2 
Other receivables18.5 43.2 
 1,817.7 1,529.9 
Less: Allowance for doubtful accounts(18.7)(17.3)
Less: Long-term portion of accounts receivable, net1
(875.2)(602.6)
Total accounts receivable, net$923.8 $910.0 
1The long-term portions of accounts receivable and allowance for doubtful accounts were included as a component of other non-current assets in the Consolidated Balance Sheets.

Accounts receivable classifications include the following:

•Contracts in transit are receivables from various lenders for the financing of vehicles that we have arranged on behalf of the customer and are typically received approximately ten days after selling a vehicle.
•Trade receivables are comprised of amounts due from customers for open charge accounts, lenders for the commissions earned on financing and others for commissions earned on service contracts and insurance products.
•Vehicle receivables represent receivables for the portion of the vehicle sales price paid directly by the customer.
•Manufacturer receivables represent amounts due from manufacturers, including holdbacks, rebates, incentives and warranty claims.
•Auto loan receivables include amounts due from customers related to vehicle sales financed through Driveway Finance Corporation.
•Lease receivables include amounts related to vehicles leased to customers through Pfaff Leasing.

Interest income on auto loan receivables is recognized based on the contractual terms of each loan and is accrued until repayment, reaching non-accrual status, charge-off, or repossession. Direct costs associated with loan originations are capitalized and expensed as an offset to interest income when recognized on the loans. All other receivables are recorded at invoice and do not bear interest until they are 60 days past due.

The balances of auto loan and lease receivables are made up of loans secured by the related vehicles. More than 99% of the portfolio is aged less than 60 days past due with less than 1% on non-accrual status.

(Dollars in millions)March 31, 2022December 31, 2021
Total Auto loan and lease receivables$1,036.4 $829.2 
Less: Allowance for loan and lease losses(29.4)(25.0)
Auto loan and lease receivables, net$1,007.0 $804.2 
Below is a breakdown of the current and long term portions of our auto loan and lease receivables:
(Dollars in millions)March 31, 2022December 31, 2021
Current portion of auto loan and lease receivables, net of allowance of $15.5 and $13.6
$157.2 $224.5 
Long term portion of auto loan and lease receivables, net of allowance of $13.9 and $11.4
849.8 579.7 
Auto loan and lease receivables, net$1,007.0 $804.2 

Our allowance for loan and lease losses represents the net credit losses expected over the remaining contractual life of our managed receivables. The allowances for credit losses related to auto loan and lease receivables consisted of the following changes during the period:
Three Months Ended March 31,
(Dollars in millions)20222021
Allowance for loan losses at beginning of period$22.5 $12.4 
Charge-offs(10.3)(3.4)
Recoveries4.2 1.9 
Provision expense9.8 1.1 
Allowance for loan losses at end of period26.2 12.0 
Allowance for lease losses3.2 — 
Total allowance for loan and lease losses balance at end of period$29.4 $12.0 

Ending auto loan receivables (principal balances) by FICO score:
(Dollars in millions)March 31, 2022December 31, 2021
<5991
$85.8 $83.2 
600-699547.4 437.6 
700-774238.3 166.8 
775+56.7 37.4 
Total auto loan receivables928.2 725.0 
Lease portfolio and accrued interest108.2 104.2 
Total auto loan and lease receivables$1,036.4 $829.2 
1Includes loans that are originated with no FICO score available.

In accordance with Topic 326, the allowance for loan and lease losses is estimated based on our historical write-off experience, current conditions and forecasts, as well as the value of any underlying assets securing these loans. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance upon reaching 120 days past due status. The annual activity for charges and subsequent recoveries is immaterial. The remainder of our receivables are due primarily from manufacturer partners and various third-party lenders. The historical losses related to these balances are immaterial.

The long-term portion of accounts receivable was included as a component of other non-current assets in the Consolidated Balance Sheets.