Revenue Recognition (Tables)

9 Months Ended

Sep. 30, 2021

In the following tables, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. We have determined that these categories depict how the nature, amount, timing, and uncertainty of our revenue and cash flows are affected by economic factors. The tables below also include a reconciliation of the disaggregated revenue to reportable segment revenue.


	Three Months Ended September 30, 2021
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	791.3	$	967.9	$	994.6	$	—	$	2,753.8
Used vehicle	789.0		638.0		810.9		85.3		2,323.2
Parts and service	257.2		243.5		312.4		130.6		943.7
Finance and insurance, net	116.7		127.1		98.7		6.4		348.9
Other	1.0		6.8		1.4		0.7		9.9
	$	1,955.2	$	1,983.3	$	2,218.0	$	223.0	$	6,379.5

Timing of Revenue Recognition
Goods and services transferred at a point in time	$	1,778.6	$	1,800.4	$	1,960.6	$	139.7	$	5,679.3
Goods and services transferred over time(2)	176.6		182.9		257.4		83.3		700.2
	$	1,955.2	$	1,983.3	$	2,218.0	$	223.0	$	6,379.5


	Three Months Ended September 30, 2020
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	923.4	$	887.7	$	937.3	$	—	$	2,748.4
Used vehicle	478.0		415.0		576.7		47.2		1,516.9
Parts and service	233.2		220.4		278.4		120.8		852.8
Finance and insurance, net	97.8		95.2		77.5		10.7		281.2
Other	2.1		3.2		0.1		0.2		5.6
	$	1,734.5	$	1,621.5	$	1,870.0	$	178.9	$	5,404.9

Timing of Revenue Recognition
Goods and services transferred at a point in time	$	1,563.4	$	1,443.2	$	1,633.6	$	111.3	$	4,751.5
Goods and services transferred over time(2)	171.1		178.3		236.4		67.6		653.4
	$	1,734.5	$	1,621.5	$	1,870.0	$	178.9	$	5,404.9


	Nine Months Ended September 30, 2021
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	2,718.0	$	3,110.1	$	3,336.3	$	—	$	9,164.4
Used vehicle	2,101.8		1,727.2		2,242.0		224.2		6,295.2
Parts and service	749.2		706.1		915.2		375.0		2,745.5
Finance and insurance, net	351.8		369.4		293.5		16.2		1,030.9
Other	5.9		15.1		3.0		1.7		25.7
	$	5,926.7	$	5,927.9	$	6,790.0	$	617.1	$	19,261.7

Timing of Revenue Recognition
Goods and services transferred at a point in time	$	5,404.3	$	5,389.2	$	6,028.7	$	376.0	$	17,198.2
Goods and services transferred over time(2)	522.4		538.7		761.3		241.1		2,063.5
	$	5,926.7	$	5,927.9	$	6,790.0	$	617.1	$	19,261.7


	Nine Months Ended September 30, 2020
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	2,424.0	$	2,334.2	$	2,533.4	$	—	$	7,291.6
Used vehicle	1,319.4		1,105.3		1,534.3		131.1		4,090.1
Parts and service	662.1		598.3		779.0		379.6		2,419.0
Finance and insurance, net	268.9		261.6		204.8		28.1		763.4
Other	29.6		9.5		0.1		1.6		40.8
	$	4,704.0	$	4,308.9	$	5,051.6	$	540.4	$	14,604.9

Timing of Revenue Recognition
Goods and services transferred at a point in time	$	4,218.0	$	3,830.7	$	4,387.4	$	318.0	$	12,754.1
Goods and services transferred over time(2)	486.0		478.2		664.2		222.4		1,850.8
	$	4,704.0	$	4,308.9	$	5,051.6	$	540.4	$	14,604.9
(1) “Corporate and other” is comprised of our other businesses, including collision centers, AutoNation USA used vehicle stores, auction operations, and parts distribution centers.
(2) Represents revenue recognized during the period for automotive repair and maintenance services.

Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction

The following table includes estimated revenue expected to be recognized in the future related to VCP performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period:


	Revenue Expected to Be Recognized by Period
	Total		Next 12 Months		13 - 36 Months		37 - 60 Months
Revenue expected to be recognized on VCP contracts sold as of period end	$	92.9	$	33.1	$	44.0	$	15.8

Receivables from Contracts with Customers, Contract Assets, and Contract Liabilities

The following table provides the balances of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities:


	September 30, 2021		December 31, 2020
Receivables from contracts with customers, net	$	462.9	$	595.0
Contract Asset (Current)	$	31.0	$	25.7
Contract Asset (Long-Term)	$	10.1	$	10.2
Contract Liability (Current)	$	33.4	$	32.5
Contract Liability (Long-Term)	$	59.7	$	56.0

The change in the balances of our contract assets and contract liabilities primarily result from the timing differences between our performance and the customer’s payment, as well as changes in the estimated transaction price related to variable consideration that was constrained for performance obligations satisfied in previous periods. The following table presents revenue recognized during the period from amounts included in the contract liability balance at the beginning of the period and performance obligations satisfied in previous periods:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Amounts included in contract liability at the beginning of the period	$	7.9	$	5.9	$	24.8	$	24.7
Performance obligations satisfied in previous periods	$	5.2	$	9.9	$	16.3	$	13.8

Other significant changes include contract assets reclassified to receivables of $24.6 million for the nine months ended September 30, 2021, and $24.4 million for the nine months ended September 30, 2020.