REVENUE RECOGNITION

3 Months Ended

Mar. 31, 2022

Revenue from Contract with Customer [Abstract]

REVENUE RECOGNITION

REVENUE RECOGNITION

Disaggregation of Revenue

Revenue from contracts with customers for the three months ended March 31, 2022 and 2021 consists of the following:

	For the Three Months Ended March 31,
	2022		2021
	(In millions)
Revenue:
New vehicle	$	1,855.6	$	1,151.7
Used vehicle retail	1,216.9		607.5
Used vehicle wholesale	134.0		83.4
New and used vehicle	3,206.5		1,842.6
Sale of vehicle parts and accessories	130.2		42.9
Vehicle repair and maintenance services	371.7		219.1
Parts and service	501.9		262.0
Finance and insurance, net	203.4		88.3
Total revenue	$	3,911.8	$	2,192.9

Contract Assets

Changes in contract assets during the period are reflected in the table below. Contract assets related to vehicle repair and maintenance services are transferred to receivables when a repair order is completed and invoiced to the customer. Certain incremental sales commissions payable to obtain an F&I revenue contract with a customer have been capitalized and are amortized using the same pattern of recognition applicable to the associated F&I revenue contract.

	Vehicle Repair and Maintenance Services		Finance and Insurance, net		Deferred Sales Commissions		Total
	(In millions)
Balance as of January 1, 2022	$	12.3	$	13.5	$	1.4	$	27.2
Transferred to receivables from contract assets recognized at the beginning of the period	(12.3)		(5.4)		—		(17.7)
Amortization of costs to obtain a contract with a customer	—		—		(0.5)		(0.5)
Increases related to revenue recognized, inclusive of adjustments to constraint, during the period	12.8		5.9		10.0		28.7
Balance as of March 31, 2022	$	12.8	$	14.0	$	10.9	$	37.7

Deferred Revenue

The Company acquired $644.3 million in Deferred revenue as part of the LHM Acquisition in December 2021. The Condensed Consolidated Balance Sheets reflect $663.3 million and $647.8 million as of March 31, 2022 and December 31,

2021, respectively. Approximately $53.4 million of Deferred revenue at December 31, 2021 was recorded in Finance and insurance, net revenue in the Condensed Consolidated Statements of Income during the three months ended March 31, 2022.