10-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-K

(Mark One)

☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

    For the fiscal year ended December 31, 2021

or

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

    For the transition period from ________ to ________             

Commission File Number:1-13107

AUTONATION, INC.

(Exact name of registrant as specified in its charter)

Delaware			73-1105145
(State or other jurisdiction of incorporation or organization)			(I.R.S. Employer Identification No.)
200 SW 1st Ave
Fort Lauderdale	,	Florida	33301
(Address of principal executive offices)			(Zip Code)

(954) 769-6000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, Par Value $0.01 Per Share	AN	New York Stock Exchange

Securities registered pursuant to Section 12(g) of the Act: None

Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act.   Yes  þ    No  ¨

Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act.    Yes  ¨  No  þ

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the new registrant was required to submit such files).    Yes  þ    No  ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	þ	Accelerated filer	☐
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ¨

Indicate by check mark whether the registrant has filed a report on and attestation to its management’s assessment of the effectiveness of its internal control over financial reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes  ☐    No  þ

As of June 30, 2021, the aggregate market value of the common stock of the registrant held by non-affiliates was approximately $4.5 billion based on the closing price of the common stock on the New York Stock Exchange on such date (for the purpose of this calculation, the registrant assumed that each of its directors, executive officers, and greater than 10% stockholders was an affiliate of the registrant as of June 30, 2021).

As of February 15, 2022, the registrant had 61,671,559 shares of common stock outstanding.

DOCUMENTS INCORPORATED BY REFERENCE

Portions of the registrant’s Proxy Statement relating to its 2022 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2021 are incorporated herein by reference in Part III.

AUTONATION, INC.

FORM 10-K

FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021

INDEX

PART I
		Page
Item 1.	Business	1
Item 1A.	Risk Factors	14
Item 1B.	Unresolved Staff Comments	22
Item 2.	Properties	23
Item 3.	Legal Proceedings	23
Item 4.	Mine Safety Disclosures	23
PART II
Item 5.	Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities	24
Item 7.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	26
Item 7A.	Quantitative and Qualitative Disclosures About Market Risk	54
Item 8.	Financial Statements	55
Item 9.	Changes in and Disagreements with Accountants on Accounting and Financial Disclosure	101
Item 9A.	Controls and Procedures	101
Item 9B.	Other Information	101
Item 9C.	Disclosure Regarding Foreign Jurisdictions that Prevent Inspections	101
PART III
Item 10.	Directors, Executive Officers and Corporate Governance	102
Item 11.	Executive Compensation	102
Item 12.	Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters	102
Item 13.	Certain Relationships and Related Transactions, and Director Independence	103
Item 14.	Principal Accounting Fees and Services	103
PART IV
Item 15.	Exhibits, Financial Statement Schedules	104
Item 16.	Form 10-K Summary	104

PART I

ITEM 1.  BUSINESS

General

AutoNation, Inc., through its subsidiaries, is the largest automotive retailer in the United States. As of December 31, 2021, we owned and operated 339 new vehicle franchises from 247 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores, which we believe include some of the most recognizable and well-known in our key markets, sell 33 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 90% of the new vehicles that we sold in 2021, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, Stellantis, Mercedes-Benz, BMW, and Volkswagen (including Audi and Porsche). As of December 31, 2021, we also owned and operated 57 AutoNation-branded collision centers, 9 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, and 3 parts distribution centers.

We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service” (also referred to as “After-Sales”), which includes automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products (also referred to as “Customer Financial Services”), which include vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. The following charts present the contribution to total revenue and gross profit by each of new vehicle, used vehicle, parts and service, and finance and insurance sales in 2021.

For convenience, the terms “AutoNation,” “Company,” and “we” are used to refer collectively to AutoNation, Inc. and its subsidiaries, unless otherwise required by the context. Our store operations are conducted by our subsidiaries.

Reportable Segments

As of December 31, 2021, we had three reportable segments: Domestic, Import, and Premium Luxury. These segments are comprised of retail automotive franchises that sell the following new vehicle brands:

Domestic		Import		Premium Luxury
Buick	Ford	Acura	Nissan	Alfa Romeo	Lexus
Cadillac	GMC	Fiat	Subaru	Audi	Maserati
Chevrolet	Jeep	Genesis	Toyota	Bentley	Mercedes-Benz
Chrysler	Lincoln	Honda	Volkswagen	BMW	MINI
Dodge	Ram	Hyundai	Volvo	Jaguar	Porsche
		Infiniti		Land Rover	Sprinter

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The following table sets forth information regarding our new vehicle revenues and retail new vehicle unit sales for the year ended, and the number of franchises owned as of, December 31, 2021:

	New Vehicle Revenues (in millions)		Retail New Vehicle Unit Sales	% of Total   Retail New   Vehicle Units Sold	Franchises Owned
Domestic:
Ford, Lincoln	$	1,317.1	27,475	10.5	35
Chevrolet, Buick, Cadillac, GMC	1,124.0		25,244	9.6	40
Chrysler, Dodge, Jeep, Ram	1,160.7		23,492	8.9	72
Domestic Total	3,601.8		76,211	29.0	147
Import:
Toyota	1,947.4		56,359	21.5	19
Honda	1,107.3		35,539	13.5	24
Nissan	194.3		6,642	2.5	7
Other Import	720.8		20,323	7.8	36
Import Total	3,969.8		118,863	45.3	86
Premium Luxury:
Mercedes-Benz	1,617.1		22,901	8.7	38
BMW	1,336.7		21,149	8.1	18
Lexus	378.4		7,770	3.0	3
Audi	355.5		5,887	2.2	10
Jaguar Land Rover	407.5		5,116	1.9	22
Other Premium Luxury	414.9		4,506	1.8	15
Premium Luxury Total	4,510.1		67,329	25.7	106
	$	12,081.7	262,403	100.0	339

The franchises in each segment also sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products. For the year ended December 31, 2021, Premium Luxury revenue represented 36% of total revenue, Domestic revenue represented 31% of total revenue, and Import revenue represented 30% of total revenue. For additional financial information regarding our three reportable segments, refer to Note 22 of the Notes to Consolidated Financial Statements set forth in Part II, Item 8 of this Form 10-K.

Except to the extent that differences among reportable segments are material to an understanding of our business taken as a whole, the description of our business in this report is presented on a consolidated basis.

Business Strategy

We seek to create long-term value for our stockholders by being the best-run, most profitable automotive retailer in the United States. We believe that the significant scale of our operations, our digital customer experience, and the quality of our managerial talent allow us to achieve efficiencies in our key markets. To achieve and sustain operational excellence, we are pursuing the following strategies:

•Create an industry-leading automotive retail customer experience in our stores and through our digital channels.

We seek to deliver a consistently superior customer experience by offering a large selection of inventory, customer-friendly, transparent sales and service processes, and competitive pricing. We believe that this will benefit us by encouraging our customers to bring their vehicles to our stores for all of their vehicle service, maintenance, and collision repair needs and also by driving repeat and referral vehicle sales business.

We continue to make significant investments to build a seamless, end-to-end customer experience in our stores and through our digital channels, and to improve our ability to generate business through those channels. We have

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enhanced the AutoNation Express experience - our integrated retailing solution that provides customers with a seamless and intuitive omnichannel vehicle shopping and purchase experience - by continuing to build omnichannel digital capabilities that provide a personalized digital customer experience online and in-store. Our customers are able to complete key automotive retail- and service-related transactions through our digital channels such as selecting and reserving a vehicle with a guaranteed price, scheduling a test drive, calculating payment options, receiving a certified trade-in or purchase offer for a vehicle that a customer wants to sell, applying for financing, selecting vehicle protection products, scheduling in-store pick up or home delivery, arranging service appointments, receiving service updates, and paying for maintenance and repair services online. We have also developed proprietary tools that leverage real-time customer data to guide and personalize the customer experience.

•Continue to invest in the AutoNation retail brand to enhance our strong customer satisfaction and expand our market share.

AutoNation is a brand that connects people and places. We continue to invest in the AutoNation retail brand, promoting personal transportation for America’s drivers, leading the charge to make transformational change in the automotive industry, and driving out cancer coast to coast. We are committed to delivering easy, transparent, and customer-centric services for our customers’ personal transportation needs.

The AutoNation retail brand includes our AutoNation USA used vehicle stores. We are expanding our AutoNation USA used vehicle store footprint and plan to build over 130 stores by the end of 2026. The first phase of the AutoNation USA store expansion will include extending AutoNation’s coast to coast footprint into new markets. AutoNation USA stores will continue to leverage the AutoNation brand, scale, exceptional used vehicle sourcing capabilities, and proven customer-centric processes to differentiate our Company and capture a larger share of the used vehicle market.

We offer AutoNation-branded Customer Financial Services products (including extended service and maintenance contracts and other vehicle protection products), AutoNation-branded parts and accessories, collision repair services at AutoNation-branded collision centers, and auction services at AutoNation-branded automotive auctions, as well as our One Price used vehicle centralized pricing and appraisal strategy, and our “We’ll Buy Your Car” program (under which customers receive a guaranteed trade-in offer honored for 7 days or 500 miles at any of our locations).

We expect that these initiatives and offerings will continue to expand and strengthen the AutoNation retail brand, improve the customer experience, provide new growth opportunities, and enable us to expand our footprint in our core and other markets.

•Leverage our significant scale and cost structure to improve our operating efficiency.

As the largest automotive retailer in the United States, we are uniquely positioned to leverage our significant scale so that we are able to achieve competitive operating margins by centralizing and streamlining various business processes. We strive to manage our new and used vehicle inventories so that our stores’ supply and mix of vehicles are in line with seasonal sales trends and also minimize our carrying costs. Additionally, we are able to improve financial controls and lower servicing costs by maintaining many key store-level accounting and administrative activities in our Shared Services Center located in Irving, Texas. We also leverage our digital capabilities to drive cost reductions and increased efficiency for the long-term success of our business. Finally, we leverage our scale to reduce costs related to purchasing certain equipment, supplies, and services through national vendor relationships.

Our business benefits from a well-diversified portfolio of automotive retail franchises. In 2021, approximately 39% of our segment income for reportable segments was generated by Premium Luxury franchises, approximately 33% by Import franchises, and approximately 28% by Domestic franchises. We believe that our business also benefits from diverse revenue streams generated by our new and used vehicle sales, parts and service business, and finance and insurance sales. Our higher-margin parts and service business has historically been less sensitive to macroeconomic conditions as compared to new and used vehicle sales.

Our capital allocation strategy is focused on growing long-term value per share. We invest capital in our business to maintain and upgrade our existing facilities and to build new facilities for existing franchises and new AutoNation USA

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used vehicle stores, as well as for other strategic and technology initiatives. We also deploy capital opportunistically to complete acquisitions or investments, build facilities for newly awarded franchises, and/or repurchase our common stock and/or debt. Our capital allocation decisions are based on factors such as the expected rate of return on our investment, the market price of our common stock versus our view of its intrinsic value, the market price of our debt, the potential impact on our capital structure, our ability to complete acquisitions that meet our market and vehicle brand criteria and return on investment threshold, and limitations set forth in our debt agreements. For additional information regarding our capital allocation, refer to “Liquidity and Capital Resources – Capital Allocation” in Part II, Item 7 of this Form 10-K.

Operations

Each of our stores acquires new vehicles for retail sale either directly from the applicable automotive manufacturer or distributor or through dealer trades with other stores of the same brand franchise. We generally acquire used vehicles from customers, primarily through trade-ins and our “We’ll Buy Your Car” program, as well as through auctions, lease terminations, and other sources, and we generally recondition used vehicles acquired for retail sale in our parts and service departments. Used vehicles that we do not sell at our stores generally are sold at wholesale prices through auctions. See also “Inventory Management” in Part II, Item 7 of this Form 10-K.

Our stores provide a wide range of vehicle maintenance, repair, and collision repair services, including manufacturer recall repairs and other warranty work that can be performed only at franchised dealerships and customer-pay service work. Our parts and service departments also recondition used vehicles acquired by our used vehicle departments and perform preparatory work on new vehicles acquired by our new vehicle departments. In addition to our retail business, we also have wholesale parts operations, which sell automotive parts to both collision repair shops and independent vehicle repair providers. We also offer AutoNation PrecisionParts and AutoNation AutoGear, product and accessory lines that are integrated into our parts and service operations.

We offer a wide variety of automotive finance and insurance products to our customers. We arrange for our customers to finance vehicles through installment loans or leases with third-party lenders, including the vehicle manufacturers’ and distributors’ captive finance subsidiaries, and receive a commission payable to us from the lender. We do not directly finance our customers’ vehicle leases or purchases, and our exposure to loss in connection with these financing arrangements generally is limited to the commissions that we receive.

We also offer our customers various vehicle protection products, including extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products, many of which are AutoNation-branded. These products are underwritten and administered by independent third parties, including the vehicle manufacturers’ and distributors’ captive finance subsidiaries. We sell the products on a commission basis, and we also participate in future underwriting profit for certain products pursuant to retrospective commission arrangements with the issuers of those products.

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As of December 31, 2021, we operated stores in the following states:

State	Number of Retail Stores (1)	Number of Franchises	Number of Other Locations (2)	% of Total      Revenue
Florida	49	59	20	25
Texas	44	62	18	21
California	37	49	4	19
Arizona	16	18	4	6
Colorado	15	22	1	6
Washington	14	19	3	5
Georgia	16	25	4	4
Nevada	12	13	1	4
Illinois	7	8	1	2
Tennessee	8	12	1	2
Maryland	15	17	3	1
New York	4	6	—	1
Ohio	4	4	3	1
Virginia	2	2	—	1
Alabama	3	6	—	1
Minnesota	1	1	—	1
South Carolina (3)	9	16	1	—
Total	256	339	64	100

(1)Includes franchised dealerships and AutoNation USA used vehicle stores.

(2)Includes collision centers, automotive auction operations, and parts distribution centers.

(3)Comprised of stores that were acquired at the end of the third quarter of 2021.

Agreements with Vehicle Manufacturers

Framework Agreements

We have entered into framework and related agreements with most major vehicle manufacturers and distributors. These agreements, which are in addition to the franchise agreements described below, contain provisions relating to our management, operation, advertising and marketing, and acquisition and ownership structure of automotive stores franchised by such manufacturers. These agreements contain certain requirements pertaining to our operating performance (with respect to matters such as sales volume, sales effectiveness, and customer satisfaction or loyalty), which, if we do not satisfy, adversely impact our ability to make further acquisitions of such manufacturers’ stores or could result in us being compelled to take certain actions, such as divesting a significantly underperforming store, subject to applicable state franchise laws. Additionally, these agreements set limits (nationally, regionally, and in local markets) on the number of stores that we may acquire of the particular manufacturer and contain certain restrictions on our ability to name and brand our stores. Some of these framework agreements give the manufacturer or distributor the right to acquire at fair market value, or the right to compel us to sell, the automotive stores franchised by that manufacturer or distributor under specified circumstances in the event of a change in control of our Company (generally including certain material changes in the composition of our Board of Directors during a specified time period, the acquisition of 20% or more of the voting stock of our Company by another vehicle manufacturer or distributor, or the acquisition of 50% or more of our voting stock by a person, entity, or group not affiliated with a vehicle manufacturer or distributor) or other extraordinary corporate transactions such as a merger or sale of all or substantially all of our assets. In addition, we have granted certain manufacturers the right to acquire, at fair market value, our automotive dealerships franchised by such manufacturers in specified circumstances in the event of our default under certain of our debt agreements.

Franchise Agreements

We operate each of our new vehicle stores under a franchise agreement with a vehicle manufacturer or distributor. The franchise agreements grant the franchised automotive store a non-exclusive right to sell the manufacturer’s or distributor’s

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brand of vehicles and offer related parts and service within a specified market area. These franchise agreements grant our stores the right to use the relevant manufacturer’s or distributor’s trademarks in connection with their operations, and they also impose numerous operational requirements and restrictions relating to inventory levels, working capital levels, the sales process, marketing and branding, showroom and service facilities, signage, personnel, changes in management, and monthly financial reporting, among other things. The contractual terms of our stores’ franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases manufacturers have undertaken to renew such franchises upon expiration so long as the store is in compliance with the terms of the agreement. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost or modification. Our stores’ franchise agreements provide for termination of the agreement by the manufacturer or non-renewal for a variety of causes (including performance deficiencies in such areas as sales volume, sales effectiveness, and customer satisfaction or loyalty). However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It generally is difficult, outside of bankruptcy, for a manufacturer to terminate, or not renew, a franchise under these laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. From time to time, certain manufacturers assert sales and customer satisfaction performance deficiencies under the terms of our framework and franchise agreements. We generally work with these manufacturers to address the asserted performance issues. For additional information, please refer to the risk factor captioned “We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores” in Part I, Item 1A of this Form 10-K.

Regulations

We operate in a highly regulated industry. A number of state and federal laws and regulations affect our business. In every state in which we operate, we must obtain various licenses in order to operate our businesses, including dealer, sales and finance, and insurance licenses issued by state regulatory authorities. Numerous laws and regulations govern how we conduct our business, including those relating to our sales, operations, finance and insurance, advertising, and employment practices. These laws and regulations include state franchise laws and regulations, consumer protection laws, privacy laws, escheatment laws, anti-money laundering laws, and other extensive laws and regulations applicable to new and used motor vehicle dealers, as well as a variety of other laws and regulations. These laws also include federal and state wage and hour, anti-discrimination, and other employment practices laws. See the risk factor “Our operations are subject to extensive governmental laws and regulations. If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that adversely affect our operations, our business, operating results, and prospects could suffer” in Part I, Item 1A of this Form 10-K.

Automotive and Other Laws and Regulations

Our operations are subject to the National Traffic and Motor Vehicle Safety Act, Federal Motor Vehicle Safety Standards promulgated by the United States Department of Transportation, and the rules and regulations of various state motor vehicle regulatory agencies. In addition, automotive dealers are subject to regulation by the Federal Trade Commission (the “FTC”). The imported automobiles, parts, and accessories we purchase are subject to United States customs duties and, in the ordinary course of our business we may, from time to time, be subject to claims for duties, penalties, liquidated damages, or other charges.

Our financing activities with customers are subject to federal truth-in-lending, consumer leasing, and equal credit opportunity laws and regulations, as well as state and local motor vehicle finance laws, leasing laws, installment finance laws, usury laws, and other installment sales and leasing laws and regulations, some of which regulate finance and other fees and charges that may be imposed or received in connection with motor vehicle retail installment sales and leasing. Claims arising out of actual or alleged violations of law may be asserted against us or our stores by individuals, a class of individuals, or governmental entities and may expose us to significant damages or other penalties, including fines and revocation or suspension of our licenses to conduct store operations. Our financing activities may also be impacted indirectly by laws and regulations that govern automotive finance companies and other financial institutions, including regulations adopted by the Consumer Financial Protection Bureau (the “CFPB”).

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See the risk factor “Our operations are subject to extensive governmental laws and regulations. If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that adversely affect our operations, our business, operating results, and prospects could suffer” in Part I, Item 1A of this Form 10-K for additional information.

Environmental, Health, and Safety Laws and Regulations

Our operations involve the use, handling, storage, and contracting for recycling and/or disposal of materials such as motor oil and filters, transmission fluids, antifreeze, refrigerants, paints, thinners, batteries, cleaning products, lubricants, degreasing agents, tires, and fuel. Consequently, our business is subject to a complex variety of federal, state, and local requirements that regulate the environment and public health and safety.

Most of our stores utilize aboveground storage tanks and, to a lesser extent, underground storage tanks, primarily for petroleum-based products. Storage tanks are subject to periodic testing, containment, upgrading, and removal under the Resource Conservation and Recovery Act and its state law counterparts. Clean-up or other remedial action may be necessary in the event of leaks or other discharges from storage tanks or other sources. In addition, water quality protection programs under the federal Water Pollution Control Act (commonly known as the Clean Water Act), the Safe Drinking Water Act, and comparable state and local programs govern certain discharges from some of our operations. Similarly, certain air emissions from operations, such as auto body painting, may be subject to the federal Clean Air Act and related state and local laws. Certain health and safety standards promulgated by the Occupational Safety and Health Administration of the United States Department of Labor and related state agencies also apply.

Some of our stores are parties to proceedings under the Comprehensive Environmental Response, Compensation, and Liability Act, or CERCLA, typically in connection with materials that were sent to former recycling, treatment, and/or disposal facilities owned and operated by independent businesses. The remediation or clean-up of facilities where the release of a regulated hazardous substance occurred is required under CERCLA and other laws.

We have a proactive strategy related to environmental, health, and safety laws and regulations, which includes contracting with third-party vendors to inspect our facilities routinely in an effort to ensure compliance. We incur significant costs to comply with applicable environmental, health, and safety laws and regulations in the ordinary course of our business. We do not anticipate, however, that the costs of such compliance will have a material adverse effect on our business, results of operations, cash flows, or financial condition, although such outcome is possible given the nature of our operations and the extensive environmental, health, and safety regulatory framework. We do not have any material known environmental commitments or contingencies.

Markets and Competition

We operate in a highly competitive industry. We believe that the principal competitive factors in the automotive retail business are location, service, price, selection, and online and mobile offerings. Each of our markets includes a large number of well-capitalized competitors that have extensive automotive retail managerial experience and strong retail locations and facilities.

New vehicle unit volume has been impacted by reduced availability of inventory due to inventory shortages driven largely by certain component shortages and disruptions in the manufacturers’ supply chains. We expect that new vehicle inventory shortages will continue well into 2022. We have prioritized our capital expenditures towards opportunities with the greatest return potential. We plan to expand our AutoNation USA used vehicle store footprint by building over 130 new stores by the end of 2026.

According to industry sources, as of December 31, 2021, there were approximately 16,700 franchised automotive dealerships, which sell both new and used vehicles, in the United States. In addition, we estimate that there were approximately twice as many independent used vehicle dealers in the United States. We face competition from (i) several public companies that operate numerous automotive retail stores or collision centers on a regional or national basis, including franchised dealers that sell new and used vehicles, non-franchised dealers that sell only used vehicles, and manufacturers that sell directly to customers, (ii) private companies that operate automotive retail stores or collision centers in our markets, and (iii) online and mobile sales platforms. We compete with dealers that sell the same vehicle brands that we sell, as well as dealers and certain manufacturers that sell other vehicle brands that we do not represent in a particular market. Our new vehicle store competitors have franchise agreements with the various vehicle manufacturers and, as such,

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generally have access to new vehicles on the same terms as we have. We also compete with other dealers for qualified employees, particularly for general managers and sales and service personnel.

In general, the vehicle manufacturers have designated marketing and sales areas within which only one franchised dealer of a given vehicle brand may operate. Under most of our framework agreements with the vehicle manufacturers, our ability to acquire multiple dealers of a given vehicle brand within a particular market is limited. We are also restricted by various state franchise laws from relocating our stores or establishing new stores of a particular vehicle brand within any area that is served by another dealer of the same vehicle brand, and we generally need the manufacturer to approve the relocation or grant a new franchise in order to relocate or establish a store. However, to the extent that a market has multiple dealers of a particular vehicle brand, as most of our key markets do with respect to most vehicle brands we sell, we face significant intra-brand competition.

We also compete with independent automobile service shops, service center chains, collision service operations, and wholesale parts outlets. We believe that the principal competitive factors in the parts and service business are price, location, expertise with the particular vehicle lines, and customer service. We also compete with a broad range of financial institutions in our finance and insurance business. We believe that the principal competitive factors in the finance and insurance business are product selection, convenience, price, contract terms, and the ability to finance vehicle protection and aftermarket products.

Insurance and Bonding

Our business exposes us to the risk of liabilities arising out of our operations. For example, liabilities may arise out of claims of employees, customers, or other third parties for personal injury or property damage occurring in the course of our operations. We could also be subject to fines and civil and criminal penalties in connection with alleged violations of federal and state laws or regulatory requirements.

The automotive retail business is also subject to substantial risk of property loss due to the significant concentration of property values at store locations. In our case in particular, our operations are concentrated in states and regions in which natural disasters and severe weather events (such as hail storms, hurricanes, earthquakes, fires, tornadoes, snow storms, and landslides) may subject us to substantial risk of property loss and operational disruption. Under self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, workers’ compensation, and employee medical benefits. Costs in excess of this retained risk per claim may be insured under various contracts with third-party insurance carriers. We estimate the ultimate costs of these retained insurance risks based on actuarial evaluations and historical claims experience, adjusted for current trends and changes in claims-handling procedures. The level of risk we retain may change in the future as insurance market conditions or other factors affecting the economics of our insurance purchasing change. Although we have, subject to certain limitations and exclusions, substantial insurance, we cannot assure you that we will not be exposed to uninsured or underinsured losses that could have a material adverse effect on our business, financial condition, results of operations, or cash flows.

Provisions for retained losses and deductibles are made by charges to expense based upon periodic evaluations of the estimated ultimate liabilities on reported and unreported claims. The insurance companies that underwrite our insurance require that we secure certain of our obligations for deductible reimbursements with collateral. Our collateral requirements are set by the insurance companies and, to date, have been satisfied by posting surety bonds, letters of credit, and/or cash deposits. Our collateral requirements may change from time to time based on, among other things, our claims experience.

Seasonality

In a stable environment, our operations generally experience higher volumes of vehicle unit sales in the second and third quarters of each year due in part to consumer buying trends and the introduction of new vehicle models. Also, demand for vehicles and light trucks is generally lower during the winter months than in other seasons, particularly in regions of the United States where stores may be subject to adverse winter conditions. However, we typically experience higher sales of Premium Luxury vehicles, which have higher average selling prices and gross profit per vehicle retailed, in the fourth quarter. Revenue and operating results may be impacted significantly from quarter to quarter by changing economic conditions, vehicle manufacturer incentive programs, and actual or threatened severe weather events.

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Trademarks

We own a number of registered service marks and trademarks, including, among other marks, AutoNation® and AutoNation USA®. Pursuant to agreements with vehicle manufacturers, we have the right to use and display manufacturers’ trademarks, logos, and designs at our stores and in our advertising and promotional materials, subject to certain restrictions. We also have licenses pursuant to various agreements with third parties authorizing the use and display of the marks and/or logos of such third parties, subject to certain restrictions. The current registrations of our service marks and trademarks are effective for varying periods of time, which we may renew periodically, provided that we comply with all applicable laws.

Human Capital

Employees

At AutoNation, nothing drives our success more than how we hire, train, and retain great people. We value the dignity of all employees and are committed to maintaining a work environment where all associates are valued and treated with respect. As of December 31, 2021, we employed approximately 22,200 full-time and part-time associates, approximately 170 of whom were covered by collective bargaining agreements.

We seek to develop and foster a diverse and inclusive work environment based on ethics and integrity where all associates can devote their best efforts to their jobs. Employee feedback is core to our culture and when we understand what employees need, it creates a better workplace for everyone. From time to time, we survey the satisfaction of our employees and seek input from employees on what is working and where we have opportunities for improvement, which helps us shape the future of AutoNation.

Diversity and Inclusion

We are committed to an inclusive and welcoming environment where each individual feels valued, respected, and heard. In 2020, we launched ONE AutoNation, an employee-focused initiative designed to embrace diversity in thought and action, promote inclusion despite our differences, and foster ongoing opportunities for learning, growth, and leadership. Our ONE AutoNation mission is to keep driving forward towards a more inclusive world. Our associates are guided by our policies, procedures, and training programs to ensure everyone is treated with respect and has opportunities to reach their full potential.

Through ONE AutoNation, we established our Diversity & Inclusion Council in order to ensure a more diverse workforce and cultivate a culture of belonging at AutoNation. Through ongoing education and collaboration, the Council is dedicated to enhancing the associate experience in an atmosphere that values, respects, and celebrates our differences. In addition, we support a number of employee business resource groups (“BRGs”) that are an integral part of our diversity and inclusion strategy. Our BRGs provide employees with the opportunity to engage with colleagues based on shared interests such as ethnic backgrounds, gender, and sexual orientation.

Leadership, Training, and Development

We believe that investment in leadership, training, and development opportunities helps us to prepare our associates with the skills they need while improving engagement and retention. We provide a range of formal and informal learning programs, which are designed to help our associates continuously grow and strengthen their skills throughout their careers, including: (1) General Manager University, designed to develop existing and future leaders at our stores; (2) Leader Education and Development for high-potential Associates (LEAD) program, designed to facilitate development for our up-and-coming talent; (3) Lead & Learn webinar events, a series of training courses designed to provide fresh perspectives and relevant content to support employee growth and leadership development; and (4) AutoNation’s Mentor Program, created to offer opportunities for associates to accelerate their personal and professional development through regular interactions specific to career growth and expansion within the organization.

See “Corporate Social Responsibility – Our Workplace” below for more information on human capital measures and objectives that we focus on in managing the business.

Corporate Social Responsibility

We strive to conduct our business in an ethical and socially responsible way, and we are sensitive to the needs of the environment, the communities in which we operate, our customers, our suppliers, our shareholders, and our associates.

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The Environment

We are committed to managing our environmental impact and continually work to reduce it where practicable. The following highlights some of our environmental stewardship initiatives:

•Driving Electrified: As America transitions increasingly toward electric vehicles (“EV”), we have added and continue to add EV charging capabilities at many of our locations. Many of these locations offer EV charging free of charge to customers. In addition, given the growing popularity of EVs, we have also created a “Driving Electrified” section of our purchasing website to help customers shop and compare different vehicles.

•Product offering: We offer a wide variety of environmentally friendly vehicles, including electric and hybrid vehicles. We expect our manufacturer partners to continue to enhance their offerings of these types of vehicles.

•Building and maintenance: As we build new facilities and expand our AutoNation USA network, we take various measures to reduce our environmental impact, such as improving energy efficiency, reducing water consumption, sourcing materials locally, improving air quality, and pursuing alternative energy sources for our facilities. Our corporate headquarters building in Fort Lauderdale, Florida, is LEED Gold Certified, and is one of several LEED certified properties that we occupy.

•Recycling: In addition to adhering to recycling statutes, we try to maximize our recycling efforts where practicable, whether water, oil, tire rubber, scrap metal, paper, plastic, car batteries, radiator cores, or other materials.

•Stewardship: We have implemented an Environmental, Health and Safety Compliance Program, which includes training and consulting support at our dealerships and other operating entities.

Our Communities

We are committed to supporting the communities in which we operate. We encourage our associates to be active members in the communities where they live and work through volunteerism and charitable giving. Cancer touches nearly everyone and that is why supporting cancer research and treatment is so important to us. We have transformed our brand through our “Drive Pink” initiative. More than a charitable focus on cancer research and treatment, Drive Pink is a core element of our corporate culture and has impacted customers, associates, and our communities in meaningful ways.

We fund national cancer research and treatment facilities from coast to coast through our philanthropic activities. Through the combined efforts of our 22,200 associates, vendors, partners, customers, and executive leadership, we have raised and donated over $30 million to support the world-class AutoNation Institute for Breast Cancer Research and Care, the Moffitt Cancer Center, the Breast Cancer Research Foundation, Cleveland Clinic, and other leading cancer facilities.

Our presence is felt at local community-based cancer events, as teams of our associates represent AutoNation at runs, walks, and other fundraisers. Yearly, AutoNation celebrates Drive Pink Across America Day by providing our associates with opportunities to deliver thousands of gift bags to local hospitals in our markets for patients undergoing cancer treatment.

Vehicles sold at our AutoNation locations are fitted with a pink license plate frame as a symbol of our commitment to “driving out” cancer. More than two million pink license plate frames have been distributed to date.

Our Business and Our Customers

We are proud to be America’s largest and most recognized automotive retailer, and we strive to create transparency and establish unparalleled trust with our customers or others with whom we do business.

•Ethical standards: We have a Code of Business Ethics in place to help support our commitment to business ethics and responsibility. This Code describes our standards of business conduct and the steps AutoNation takes to ensure that our standards are understood and followed. Each AutoNation associate throughout the organization is expected to comply with the standards set forth in the Code. We also maintain a 24-hour Alert-Line for associates to anonymously report any Company policy violations under our Business Ethics Program.

•Customer satisfaction: We seek to deliver a consistently superior customer experience by offering a large selection of inventory, customer-friendly, transparent sales and service processes, and competitive pricing in a clean and safe

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environment. We measure customer satisfaction and loyalty on a regular basis with a mission to deliver a peerless customer experience.

•Supplier relationships and sustainable procurement: We purchase products and services at a fair value regardless of the manufacturer or provider, while conducting our operations according to high standards of business conduct and all applicable legal requirements. We are also a member of an affiliate of the National Minority Supplier Development Council, which focuses on advancing business opportunities for certified minority business enterprises.

Our Workplace

AutoNation values the dignity of all employees and is committed to maintaining a work environment where all associates are valued and treated with respect. We seek to develop and foster a diverse and inclusive work environment based on ethics and integrity where all associates can devote their best efforts to their jobs.

•Respect in the Workplace: At AutoNation, we provide equal employment and promotional opportunities for all associates, as well as any individual applying for employment without regard to race, religion, sex, sexual orientation, gender identity or expression, national origin, age, disability, or any other protected characteristic as defined by applicable federal, state, or local law. We are committed to maintaining a work environment free from sexual and other harassment.

•Employee benefits: We offer a variety of employee benefits, such as competitive salaries/compensation plans, incentive compensation potential, and health and welfare benefits. Many of the valuable benefits we offer are free to our associates, including an innovative Company-paid cancer insurance plan that provides financial assistance to associates, their spouses, and their children who are diagnosed with cancer. This Company-paid benefit is offered by fewer than 5% of companies nationally and it underscores our commitment to driving out cancer.

•Healthy living: We encourage our associates and their families to be mindful of their physical and mental health, and we offer programs that provide free and confidential support services for a multitude of issues, such as legal, family/marital, and stress/anxiety, among others. We also provide a complimentary biometric screening for our associates and their spouses to raise their awareness of certain factors that can affect their health and increase the risk for heart disease, diabetes, or stroke. In addition, employees are eligible to receive annual company contributions to a health savings account from the company based on the type of coverage selected.

•Diversity: We endeavor to attract and retain diverse and talented people throughout our Company by engaging in diversity and inclusion initiatives, including our One AutoNation Program and other programs specifically designed to develop diverse groups of leaders and to recruit current and former military personnel, among others.

Cybersecurity Risk Management

We have developed and continue to enhance our cybersecurity governance program to protect the security of our computer systems, software, networks, and other technology assets against unauthorized attempts to access confidential information or to disrupt or degrade business operations. Our cybersecurity governance program is an integrated IT risk management process that aims to (1) proactively manage cyber and information security risks at AutoNation; (2) implement the internal controls required by cybersecurity regulatory requirements as well as AutoNation’s information security control objective documents and information security standards, and (3) improve the efficiency, maturity, and effectiveness of technology functions and processes.

We regularly evaluate new and emerging risks and ever-changing legal and compliance requirements and examine the effectiveness and maturity of our cyber defenses through various means, including internal audits, targeted testing, incident response exercises, maturity assessments and industry benchmarking. In addition, we dedicate significant resources to securing our systems and protecting confidential information such as firewalls, endpoint protection and behavior analysis tools, among others.

Despite our efforts to ensure the integrity of our computer systems, software, networks, and other technology assets, we may not be able to anticipate, detect, or recognize threats to our systems and assets, or to implement effective preventive measures against all cyber threats, especially because the techniques used are increasingly sophisticated, change frequently, are complex, and are often not recognized until launched. See the risk factor “A failure of our information systems or any

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security breach or unauthorized disclosure of confidential information could have a material adverse effect on our business” in Part I, Item 1A of this Form 10-K.

Corporate Governance

Our Board of Directors is committed to sound corporate governance principles and practices, which are set forth in our Corporate Governance Guidelines that serve as a framework within which our Board conducts its operations. The Corporate Governance and Nominating Committee of our Board is charged with reviewing annually, or more frequently as appropriate, the Guidelines and recommending to our Board appropriate changes in light of applicable laws and regulations, the governance standards identified by leading governance authorities, and our Company’s evolving needs.

Our Board of Directors consists of a diverse group of leaders. Many of them have experience serving as executive officers or on boards and board committees of major companies. Many of them also have extensive corporate finance and investment banking experience as well as a broad understanding of capital markets. A majority of our Board of Directors is independent, and each of the members of our audit, compensation, and corporate governance and nominating committees is independent. Each of our directors must stand for re-election annually and are elected by a majority of our shareholders. In addition, Rick L. Burdick, one of our independent directors, currently serves as our Chairman of the Board.

Investor Relations

Our relationship with our shareholders is an important part of AutoNation’s success. We have an investor outreach program committed to engaging with current and prospective stockholders and obtaining their perspectives. Our integrated outreach team engages proactively with our stockholders by participating in activities such as quarterly financial results conference calls, industry conferences and events, and one-on-one meetings.

Information about our Executive Officers

The following sets forth certain information regarding our executive officers as of February 17, 2022.

Name	Age	Position	Years with AutoNation	Years in Automotive Industry
Michael Manley	57	Chief Executive Officer and Director	1	34
James R. Bender	66	President and Chief Operating Officer	22	45
Joseph T. Lower	55	Executive Vice President and Chief Financial Officer	2	2
Marc Cannon	60	Executive Vice President and Chief Customer Experience Officer	24	35
C. Coleman Edmunds	57	Executive Vice President, General Counsel and Corporate Secretary	26	26

Michael Manley has served as our Chief Executive Officer and a member of our Board of Directors since November 2021. Prior to joining AutoNation, Mr. Manley served as Head of Americas and as a member of the Group Executive Council for Stellantis N.V., one of the largest automotive original equipment manufacturers in the world, from January 2021 until October 2021. From July 2018 until January 2021, he served as Chief Executive Officer of Fiat Chrysler Automobiles N.V. (“FCA”), a predecessor to Stellantis N.V. Mr. Manley joined DaimlerChrysler (a predecessor to FCA) in 2000 and, prior to becoming FCA’s Chief Executive Officer, served in a number of management-level roles with increasing responsibility overseeing various aspects of FCA’s operations, including as Executive Vice President - International Sales & Marketing, Business Development and Global Product Planning Operations, Chief Executive Officer of Jeep, Chief Executive Officer of Ram, Chief Operating Officer for the Asia Pacific region, and FCA Global Council member.

James R. Bender has served as our President since April 2020 and as our Chief Operating Officer since July 2019. In January 2022, Mr. Bender provided notice that he intends to retire from the Company, effective March 4, 2022. Mr. Bender is responsible for new and used vehicle sales, as well as Customer Financial Services, After-Sales, Human Resources,

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Corporate Development, and Manufacturer Relations. From January 2019 until July 2019, he served as our Executive Vice President, Sales, and from July 2019 until April 2020, he served as our Executive Vice President and Chief Operating Officer. Prior to becoming an Executive Vice President, Mr. Bender served as Region President of our Eastern Region, with responsibility for the states of Florida, Georgia, Alabama, Virginia, Tennessee, Ohio, and Maryland from February 2015 until December 2018, and as President of our former Florida Region from April 2004 until January 2015. Mr. Bender joined AutoNation in April 2000.

Joseph T. Lower has served as our Executive Vice President and Chief Financial Officer since January 2020. Mr. Lower is responsible for overseeing the finance department and for all financial controls and external reporting, financial planning and analysis, and accounting, as well as the tax, internal audit, treasury, investor relations, and corporate real estate functions. He is also responsible for our strategy department and the Company’s shared service center in Irving, Texas. Prior to joining AutoNation, Mr. Lower served as Executive Vice President and Chief Financial Officer of Office Depot, Inc. from January 2018 until January 2020. From November 2014 until April 2017, he served as Vice President and Chief Financial Officer of B/E Aerospace. Prior to joining B/E Aerospace, Mr. Lower held a number of management-level positions at The Boeing Company. In addition, among other finance positions, Mr. Lower spent six years with Credit Suisse in various investment banking roles, including positions in mergers and acquisitions and corporate finance.

Marc Cannon has served as an Executive Vice President since January 2017 and as our Chief Customer Experience Officer since April 2020. Mr. Cannon is responsible for marketing, communications, customer service, AutoNation.com, and public policy. From February 2016 until January 2017, he served as our Chief Marketing Officer, Senior Vice President of Communications and Public Policy, and from February 2007 until February 2016, he served as our Senior Vice President, Corporate Communications.

C. Coleman Edmunds has served as our Executive Vice President, General Counsel and Corporate Secretary since April 2017. From October 2007 through March 2017, Mr. Edmunds served as our Senior Vice President, Deputy General Counsel and Assistant Secretary. He joined AutoNation in November 1996. Prior to joining AutoNation, Mr. Edmunds was in private practice with the international law firm of Baker & McKenzie.

Available Information

Our website is located at www.autonation.com, and our Investor Relations website is located at investors.autonation.com. The information on or accessible through our websites and social media channels is not incorporated by reference in this Annual Report on Form 10-K. Our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to reports filed or furnished pursuant to Sections 13(a) and 15(d) of the Securities Exchange Act of 1934, as amended, are available, free of charge, on our Investor Relations website as soon as reasonably practicable after we electronically file such material with, or furnish it to, the Securities and Exchange Commission (the “SEC”).

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ITEM 1A.  RISK FACTORS

Our business, financial condition, results of operations, cash flows, and prospects, and the prevailing market price and performance of our common stock may be adversely affected by a number of factors, including the matters discussed below. Certain statements and information set forth in this Annual Report on Form 10-K, including, without limitation, statements regarding the impact of the COVID-19 pandemic on our business, results of operations, and financial condition, the actions we are taking in response to the COVID-19 pandemic, our strategic initiatives, partnerships, or investments, including the planned expansion of our AutoNation USA used vehicle stores, our investments in digital and online capabilities, and other strategic initiatives, and other statements regarding our expectations for the future performance of our business and the automotive retail industry, as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact, including statements that describe our objectives, plans, or goals are, or may be deemed to be, forward-looking statements. Words such as “anticipate,” “expect,” “intend,” “goal,” “plan,” “believe,” “continue,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these statements. These forward-looking statements speak only as of the date of this report, and we undertake no obligation to revise or update these statements to reflect subsequent events or circumstances. The risks, uncertainties, and other factors that our stockholders and prospective investors should consider include, but are not limited to, the following:

Risks Related to Economic Conditions

The automotive retail industry is sensitive to changing economic conditions and various other factors, including, but not limited to, unemployment levels, consumer confidence, fuel prices, interest rates, and tariffs. Our business and results of operations are substantially dependent on new and used vehicle sales levels in the United States and in our particular geographic markets, as well as the gross profit margins that we can achieve on our sales of vehicles, all of which are very difficult to predict.

We believe that many factors affect sales of new and used vehicles and automotive retailers’ gross profit margins in the United States and in our particular geographic markets, including the economy, fuel prices, credit availability, interest rates, consumer confidence, consumer shopping preferences and the success of third-party online and mobile sales platforms, the level of personal discretionary spending, labor force participation and unemployment rates, the state of housing markets, vehicle production levels and capacity, auto emission and fuel economy standards, the rate of inflation, currency exchange rates, tariffs, manufacturer incentives (and consumers’ reaction to such offers), intense industry competition, the prospects of war, other international conflicts or terrorist attacks, global pandemics, severe weather events, product quality, affordability and innovation, the number of consumers whose vehicle leases are expiring, the length of consumer loans on existing vehicles, and the rise of ride-sharing applications. Changes in interest rates can significantly impact new and used vehicle sales and vehicle affordability due to the direct relationship between interest rates and monthly loan payments, a critical factor for many vehicle buyers, and the impact interest rates have on customers’ borrowing capacity and disposable income. Sales of certain vehicles, particularly trucks and sport utility vehicles that historically have provided us with higher gross profit per vehicle retailed, are sensitive to fuel prices and the level of construction activity. In addition, rapid changes in fuel prices can cause shifts in consumer preferences which are difficult to accommodate given the long lead-time of inventory acquisition. The imposition of new tariffs, quotas, duties, or other restrictions or limitations could increase prices for vehicles and/or parts imported into the United States and adversely impact demand for such vehicles and/or parts. Our vehicle sales, service, and collision businesses could also be adversely affected by changes in the automotive industry driven by new technologies, distribution channels, or products, including ride-sharing applications, subscription services, autonomous and electric vehicles, and accident avoidance technology.

Approximately 15.1 million, 14.6 million, and 17.0 million new vehicles, including retail and fleet vehicles, were sold in the United States in 2021, 2020, and 2019, respectively. Our performance may differ from the performance of the automotive retail industry due to particular economic conditions and other factors in the geographic markets in which we operate.

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Economic conditions and the other factors described above may also materially adversely impact our sales of parts and automotive repair and maintenance services and automotive finance and insurance products.

The COVID-19 pandemic has disrupted, and may continue to disrupt, our business, results of operations, and financial condition going forward. Future epidemics, pandemics, and other outbreaks could also disrupt our business, results of operations, and financial condition.

The COVID-19 pandemic has led to disruptions in each of our markets and the global economy. Throughout the COVID-19 pandemic, federal, state, and local governments have implemented a number of countermeasures to mitigate the impact of the COVID-19 pandemic. As a result of the COVID-19 pandemic, we experienced significant declines in new and used vehicle unit sales and sales of our finance and insurance products, particularly during the first and second quarters of 2020. In addition, our parts and service business operated below full capacity during 2020 as a result of the countermeasures discussed above and a decrease in the average miles being driven in our markets during the COVID-19 pandemic. Since the onset of the pandemic, we have experienced a shortage of available new vehicles for sale. The reduced levels of new vehicle availability is currently expected to continue well into 2022; however, there is still significant uncertainty as to when new vehicle availability will improve.

The extent to which the COVID-19 pandemic ultimately impacts our business, results of operations, and financial condition will depend on future developments, which are highly uncertain and cannot be predicted, including the severity and duration of the COVID-19 pandemic, further actions that may be taken by federal, state, and local governments and third parties in response to the pandemic, the effectiveness of actions taken to contain the disease, the effect of government assistance programs, and other unforeseen factors.

Depending on the magnitude and duration of the COVID-19 pandemic, the disruption and adverse impact of the COVID-19 pandemic on our business, results of operations, and financial condition could be material. The COVID-19 pandemic also may heighten or exacerbate many of the other risks discussed herein. Even after the COVID-19 pandemic has subsided, we may continue to experience significant adverse effects to our business as a result of its economic impact, including any economic recession or downturn and the impact of such a recession or downturn on unemployment levels, consumer confidence, levels of personal discretionary spending, and credit availability. Future epidemics, pandemics, and other outbreaks could disrupt and have a similar adverse impact on our business, results of operations, and financial condition.

Risks Related to Vehicle Manufacturers

Our new vehicle sales are impacted by the incentive, marketing, and other programs of vehicle manufacturers.

Most vehicle manufacturers from time to time establish various marketing and sales incentive programs designed to spur consumer demand for their vehicles, particularly during periods of excess supply and/or in a flat or declining new vehicle market. These programs impact our operations, particularly our sales of new vehicles. Since these programs are often not announced in advance, they can be difficult to plan for when ordering inventory. Furthermore, manufacturers may modify and discontinue these marketing and incentive programs from time to time, which could have a material adverse effect on our results of operations and cash flows.

In prior years, our new vehicle unit volume and new vehicle gross profit on a per vehicle retailed basis were adversely impacted by certain manufacturers’ disruptive marketing and sales incentive programs based upon store-level growth targets established by those manufacturers (commonly referred to as “stair-step” incentive programs), which result in multi-tier pricing and adversely impact our ability to compete with other dealers. If those manufacturers continue to use such incentive programs or if other manufacturers adopt similar incentive programs, our operating results could be adversely impacted.

We are dependent upon the success and continued financial viability of the vehicle manufacturers and distributors with which we hold franchises.

The success of our stores is dependent on vehicle manufacturers in several key respects. First, we rely exclusively on the various vehicle manufacturers for our new vehicle inventory. Our ability to sell new vehicles is dependent on a vehicle manufacturer’s ability to design, manufacture, and allocate to our stores an attractive, high-quality, and desirable product mix at the right time and at the right price in order to satisfy customer demand. Second, manufacturers generally support their

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franchisees by providing direct financial assistance in various areas, including, among others, floorplan assistance and advertising assistance. Third, manufacturers provide product warranties and, in some cases, service contracts to customers.

Our stores perform warranty and service contract work for vehicles under manufacturer product warranties and service contracts, and direct bill the manufacturer as opposed to invoicing the store customer. At any particular time, we have significant receivables from manufacturers for warranty and service work performed for customers. In addition, we rely on manufacturers to varying extents for original equipment manufactured replacement parts, training, product brochures and point of sale materials, and other items for our stores. Our business, results of operations, and financial condition could be materially adversely affected as a result of any event that has a material adverse effect on the vehicle manufacturers or distributors that are our primary franchisors.

The core brands of vehicles that we sell, representing approximately 90% of the new vehicles that we sold in 2021, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, Stellantis, Mercedes-Benz, BMW, and Volkswagen (including Audi and Porsche). We are subject to a concentration of risk in the event of adverse events or financial distress, including bankruptcy, impacting one or more of these manufacturers.

Vehicle manufacturers may be adversely impacted by economic downturns or recessions, significant declines in the sales of their new vehicles, natural disasters, increases in interest rates, adverse fluctuations in currency exchange rates, declines in their credit ratings, liquidity concerns, labor strikes or similar disruptions (including within their major suppliers), supply shortages or rising raw material costs, rising employee benefit costs, vehicle recall campaigns, adverse publicity that may reduce consumer demand for their products (including due to bankruptcy), product defects, litigation, poor product mix or unappealing vehicle design, governmental laws and regulations (including fuel economy requirements), tariffs and other import product restrictions, the rise of ride-sharing applications, or other adverse events. These and other risks could materially adversely affect any manufacturer and impact its ability to profitably design, market, produce, or distribute new vehicles, which in turn could materially adversely affect our ability to obtain or finance our desired new vehicle inventories, our ability to take advantage of manufacturer financial assistance programs, our ability to collect in full or on a timely basis our manufacturer warranty and other receivables, and/or our ability to obtain other goods and services provided by the impacted manufacturer. In addition, vehicle recall campaigns could materially adversely affect our business, results of operations, and financial condition.

Vehicle manufacturers worldwide have recently faced production disruptions caused by a shortage of automotive microchips. The shortage is reported to be due to the overall high demand for microchips in the global economy. Prolonged shortages of new vehicle inventory could result in lower new vehicle sales volumes and a decrease in the total amount of gross profit we derive from new vehicle sales, which could adversely affect our business. Additionally, the shortage of new vehicles has increased market demand for used vehicles, raising both revenue and gross profit per used vehicle retailed, but also increasing our costs of acquiring used vehicle inventory. Resolution of the microchip shortage should lead to an increase in the supply of new vehicles, which may adversely affect levels of profitability on both new and used vehicles.

Our business could be materially adversely impacted by the bankruptcy of a major vehicle manufacturer or related lender. For example, (i) a manufacturer in bankruptcy could attempt to terminate all or certain of our franchises, in which case we may not receive adequate compensation for our franchises, (ii) consumer demand for such manufacturer’s products could be materially adversely affected, (iii) a lender in bankruptcy could attempt to terminate our floorplan financing and demand repayment of any amounts outstanding, (iv) we may be unable to arrange financing for our customers for their vehicle purchases and leases through such lender, in which case we would be required to seek financing with alternate financing sources, which may be difficult to obtain on similar terms, if at all, (v) we may be unable to collect some or all of our significant receivables that are due from such manufacturer or lender, and we may be subject to preference claims relating to payments made by such manufacturer or lender prior to bankruptcy, and (vi) such manufacturer may be relieved of its indemnification obligations with respect to product liability claims. Additionally, any such bankruptcy may result in us being required to incur impairment charges with respect to the inventory, fixed assets, and intangible assets related to certain franchises, which could adversely impact our results of operations and financial condition.

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We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores.

Vehicle manufacturers and distributors with whom we hold franchises have significant influence over the operations of our stores. The terms and conditions of our framework, franchise, and related agreements and the manufacturers’ interests and objectives may, in certain circumstances, conflict with our interests and objectives. For example, manufacturers can set performance standards with respect to sales volume, sales effectiveness, and customer satisfaction or loyalty, and can influence our ability to acquire additional stores, the naming and marketing of our stores, our digital channels, our selection of store management, product stocking and advertising spending levels, and the level at which we capitalize our stores. Manufacturers also impose minimum facility requirements that can require significant capital expenditures. Manufacturers may also have certain rights to restrict our ability to provide guaranties of our operating companies, pledges of the capital stock of our subsidiaries, and liens on our assets, which could adversely impact our ability to obtain financing for our business and operations on favorable terms or at desired levels. From time to time, we are precluded under agreements with certain manufacturers from acquiring additional franchises, or subject to other adverse actions, to the extent we are not meeting certain performance criteria at our existing stores (with respect to matters such as sales volume, sales effectiveness, and customer satisfaction or loyalty) until our performance improves in accordance with the agreements, subject to applicable state franchise laws.

Manufacturers also have the right to establish new franchises or relocate existing franchises, subject to applicable state franchise laws. The establishment or relocation of franchises in our markets could have a material adverse effect on the financial condition, results of operations, cash flows, and prospects of our stores in the market in which the franchise action is taken.

Our framework, franchise, and related agreements also grant the manufacturer the right to terminate or compel us to sell our franchise for a variety of reasons (including uncured performance deficiencies, any unapproved change of ownership or management, or any unapproved transfer of franchise rights or impairment of financial standing or failure to meet capital requirements), subject to applicable state franchise laws. From time to time, certain major manufacturers assert sales and customer satisfaction performance deficiencies under the terms of our framework and franchise agreements. Additionally, our framework agreements contain restrictions regarding a change in control, which may be outside of our control. See “Agreements with Vehicle Manufacturers” in Part I, Item 1 of this Form 10-K. While we believe that we will be able to renew all of our franchise agreements, we cannot guarantee that all of our franchise agreements will be renewed or that the terms of the renewals will be favorable to us. We cannot assure you that our stores will be able to comply with manufacturers’ sales, customer satisfaction, loyalty, performance, facility, and other requirements in the future, which may affect our ability to acquire new stores or renew our franchise agreements, or subject us to other adverse actions, including termination or compelled sale of a franchise, any of which could have a material adverse effect on our financial condition, results of operations, cash flows, and prospects. Furthermore, we rely on the protection of state franchise laws in the states in which we operate and if those laws are repealed or weakened, our framework, franchise, and related agreements may become more susceptible to termination, non-renewal, or renegotiation.

In addition, we have granted certain manufacturers the right to acquire, at fair market value, our automotive dealerships franchised by that manufacturer in specified circumstances in the event of our default under certain of our debt agreements.

Risks Related to Strategic Initiatives

We are investing significantly in various strategic initiatives, and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results.

We have invested and will continue to invest substantial resources in marketing activities with the goals of, among other things, extending and enhancing the AutoNation retail brand and attracting consumers to our own digital channels. We are also investing significantly in our brand extension strategy, which includes AutoNation USA used vehicle stores and branded Customer Financial Services products. These strategic initiatives may be impacted by a number of variables, including customer adoption, availability of used vehicle inventory, demand for our branded products, market conditions, and our ability to identify, acquire, and build out suitable locations in a timely manner. In addition, we depend on sourcing our branded parts and accessories through various partnerships and third-party suppliers. Our partners and third-party suppliers may be adversely impacted by a number of factors, including supply shortages, rising raw material costs, delays in shipping,

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economic downturns, liquidity concerns, natural disasters, labor strikes or shortages, fluctuations in currency exchange rates, product defects, litigation, governmental laws and regulations, tariffs and export product restrictions, and adverse publicity relating to their employment, environmental, or other business practices. There can be no assurance that those initiatives will be successful or that the amount we invest in those initiatives will result in improved financial results. If our initiatives are not successful, we will have incurred significant expenses without the benefit of improved financial results, and we may be required to incur impairment charges.

If we are not able to maintain and enhance our retail brands and reputation or to attract consumers to our own digital channels, or if events occur that damage our retail brands, reputation, or sales channels, our business and financial results may be harmed.

We believe that we have built an excellent reputation as an automotive retailer in the United States. All of our Domestic and Import stores are unified under the AutoNation retail brand. We believe that our continued success will depend on our ability to maintain and enhance the value of our retail brands across all of our sales channels, including in the communities in which we operate, and to attract consumers to our own digital channels.

Consumers are increasingly shopping for new and used vehicles, automotive repair and maintenance services, and other automotive products and services online and through mobile applications, including through third-party online and mobile sales platforms, with which we compete, that are designed to generate consumer sales leads that are sold to automotive dealers. We have invested and will continue to invest substantial resources on offering our vehicles and services through digital channels. There can be no assurance that our initiatives and investments in digital channels will be successful or result in improved financial performance. We face increased competition for market share from other automotive retailers and sales platforms that have also invested substantial resources on offering their vehicles and services through digital channels. If we fail to preserve the value of our retail brands, maintain our reputation, or attract consumers to our own digital channels, our business could be adversely impacted.

An isolated business incident at a single store could materially adversely affect our other stores, retail brands, reputation, and sales channels, particularly if such incident results in adverse publicity, governmental investigations, or litigation. In addition, the growing use of social media by consumers increases the speed and extent that information and opinions can be shared, and negative posts or comments on social media about AutoNation or any of our stores could materially damage our retail brands, reputation, and sales channels.

The carrying value of our minority equity investment that does not have a readily determinable fair value is required to be adjusted for observable price changes or impairments, both of which could adversely impact our results of operations and financial condition.

We have elected to measure our minority equity investment that does not have a readily determinable fair value using a measurement alternative permitted by accounting standards, and we recorded the equity investment at cost to be subsequently adjusted for observable price changes or impairment, if any. There may be future issuances of identical or similar equity securities by the same issuer that would result in observable price changes that could result in upward or downward adjustments to this equity investment. A material downward adjustment to or impairment of this equity investment could adversely impact our results of operations and financial condition.

Risks Related to Legal, Regulatory, and Compliance Matters

New laws, regulations, or governmental policies in response to climate change, including fuel economy and greenhouse gas emission standards, or changes to existing standards, could adversely impact our business, results of operations, financial condition, cash flow, and prospects.

Concerns over the long-term impacts of climate change have led and will continue to lead to governmental initiatives aimed to mitigate those impacts. Consumers may also change their behavior as a result of these concerns. We will need to respond to new laws and regulations as well as consumer preferences resulting from climate change concerns which may affect vehicle manufacturers’ ability to produce cost effective vehicles. Laws and regulations enacted that directly or indirectly affect vehicle manufacturers (through an increase in the cost of production or their ability to produce satisfactory products) or our business (through an impact on our inventory availability, cost of sales, operations or demand for the

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products we sell) which could materially adversely impact our business, results of operations, financial condition, cash flow, and prospects.

In addition, vehicle manufacturers are subject to government-mandated fuel economy and greenhouse gas, or GHG, emission standards, which continue to change and become more stringent over time. Significant increases in fuel economy requirements or new federal or state restrictions on emissions of carbon dioxide that may be imposed on vehicles and automobile fuels could adversely affect demand for vehicles, annual miles driven or the products we sell or lead to changes in automotive technology.

We are subject to numerous legal and administrative proceedings, which, if the outcomes are adverse to us, could materially adversely affect our business, results of operations, financial condition, cash flows, and prospects.

We are involved, and will continue to be involved, in numerous legal proceedings arising out of the conduct of our business, including litigation with customers, wage and hour and other employment-related lawsuits, and actions brought by governmental authorities. Some of these lawsuits purport or may be determined to be class or collective actions and seek substantial damages or injunctive relief, or both, and some may remain unresolved for several years. We do not believe that the ultimate resolution of these matters will have a material adverse effect on our business, results of operations, financial condition, cash flows, or prospects. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our business, results of operations, financial condition, cash flows, and prospects.

Our operations are subject to extensive governmental laws and regulations. If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that adversely affect our operations, our business, operating results, and prospects could suffer.

The automotive retail industry, including our facilities and operations, is subject to a wide range of federal, state, and local laws and regulations, such as those relating to motor vehicle sales, retail installment sales, leasing, finance and insurance, vehicle protection products, advertising, licensing, consumer protection, consumer privacy, escheatment, anti-money laundering, the environment, vehicle emissions and fuel economy, health and safety, and employment practices. With respect to motor vehicle sales, retail installment sales, leasing, finance and insurance, vehicle protection products, and advertising, we are subject to various laws and regulations, the violation of which could subject us to consumer class action or other lawsuits or governmental investigations and adverse publicity, in addition to administrative, civil, or criminal sanctions. With respect to employment practices, we are subject to various laws and regulations, including complex federal, state, and local wage and hour and anti-discrimination laws. We are also subject to lawsuits and governmental investigations alleging violations of these laws and regulations, including purported class action lawsuits, which could result in significant liability, fines, and penalties. See the risk factor “We are subject to numerous legal and administrative proceedings, which, if the outcomes are adverse to us, could materially adversely affect our business, results of operations, financial condition, cash flows, and prospects” above. The violation of other laws and regulations to which we are subject also can result in administrative, civil, or criminal sanctions against us, which may include a cease and desist order against the subject operations or even revocation or suspension of our license to operate the subject business, as well as significant fines and penalties. We currently devote significant resources to comply with applicable federal, state, and local regulation of health, safety, environmental, zoning, and land use regulations, and we may need to spend additional time, effort, and money to keep our operations and existing or acquired facilities in compliance therewith. In addition, we may be subject to broad liabilities arising out of contamination at our currently and formerly owned or operated facilities, at locations to which hazardous substances were transported from such facilities, and at such locations related to entities formerly affiliated with us. Although for some such liabilities we believe we are entitled to indemnification from other entities, we cannot assure you that such entities will view their obligations as we do or will be able to satisfy them. Failure to comply with applicable laws and regulations or the unfavorable resolution of one or more lawsuits or governmental investigations may have an adverse effect on our business, results of operations, financial condition, cash flows, and prospects.

The Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”), enacted in 2010, established the CFPB, an independent federal agency funded by the United States Federal Reserve with broad regulatory powers and limited oversight from the United States Congress. Although automotive dealers are generally excluded from the Dodd-Frank Act, the CFPB could engage in additional, indirect regulation of automotive dealers, in particular, their sale and marketing of finance and insurance products, through its regulation of automotive finance companies and other financial institutions. In addition, the CFPB has a rule, pursuant to its authority under the Dodd-Frank Act, that expanded its supervisory authority

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with respect to certain non-bank lenders, including automotive finance companies, participating in automotive financing. The Dodd-Frank Act also provided the FTC with new and expanded authority regarding automotive dealers, and the FTC has implemented an enforcement initiative relating to the advertising practices of automotive dealers. Regulation from the CFPB or other federal agencies could lead to significant changes in the manner that dealers are compensated for arranging customer financing, and while it is difficult to predict how any such changes might impact us, any adverse changes could have a material adverse impact on our finance and insurance business and results of operations.

Risks Related to Cybersecurity

A failure of our information systems or any security breach or unauthorized disclosure of confidential information could have a material adverse effect on our business.

Our business is dependent upon the efficient operation of our information systems. We rely on our information systems to manage, among other things, our sales, inventory, and service efforts, including through our digital channels, and customer information, as well as to prepare our consolidated financial and operating data. The failure of our information systems to perform as designed or the failure to maintain and enhance or protect the integrity of these systems could disrupt our business operations, impact sales and results of operations, expose us to customer or third-party claims, or result in adverse publicity. Additionally, we collect, process, and retain sensitive and confidential customer information in the normal course of our business. Despite the security measures we have in place and any additional measures we may implement in the future, our facilities and systems, and those of our third-party service providers, could experience security breaches, computer viruses, lost or misplaced data, programming errors, human errors, acts of vandalism, or other events. For example, several well-known retailers have disclosed high-profile security breaches, involving sophisticated and highly targeted attacks on their company’s infrastructure or their customers’ data, which were not recognized or detected until after such retailers had been affected notwithstanding the preventative measures such retailers had in place. Any security breach or event resulting in the misappropriation, loss, or other unauthorized disclosure of confidential information, whether by us directly or our third-party service providers, could damage our reputation, expose us to the risks of litigation and liability, disrupt our business, or otherwise adversely affect our results of operations.

Risks Relating to our Indebtedness

Our debt agreements contain certain financial ratios and other restrictions on our ability to conduct our business, and our substantial indebtedness could adversely affect our financial condition and operations and prevent us from fulfilling our debt service obligations.

The credit agreement governing our revolving credit facility and the indentures relating to our senior unsecured notes contain covenants that limit the discretion of our management with respect to various business matters. These covenants place restrictions on, among other things, our ability to incur additional indebtedness, to create liens or other encumbrances, to make investments, and to sell or otherwise dispose of assets and to merge or consolidate with other entities. A failure by us to comply with the obligations contained in any of our debt agreements could result in an event of default, which could permit acceleration of the related debt as well as acceleration of debt under other debt agreements that contain cross-acceleration or cross-default provisions. If any debt is accelerated, our liquid assets may not be sufficient to repay in full such indebtedness and our other indebtedness. Additionally, we have granted certain manufacturers the right to acquire, at fair market value, our automotive stores franchised by those manufacturers in specified circumstances in the event of our default under our debt agreements.

Under our credit agreement, we are required to remain in compliance with a maximum leverage ratio and a maximum capitalization ratio. See “Liquidity and Capital Resources — Restrictions and Covenants” in Part II, Item 7 of this Form 10-K. If our earnings decline, we may be unable to comply with the financial ratios required by our credit agreement. In such case, we would seek an amendment or waiver of our credit agreement or consider other options, such as raising capital through an equity issuance to pay down debt, which could be dilutive to stockholders. There can be no assurance that our lenders would agree to an amendment or waiver of our credit agreement. In the event we obtain an amendment or waiver of our credit agreement, we would likely incur additional fees and higher interest expense.

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As of December 31, 2021, we had $3.2 billion of total non-vehicle debt and $1.5 billion of vehicle floorplan financing. Our substantial indebtedness could have important consequences. For example:

•We may have difficulty satisfying our debt service obligations and, if we fail to comply with these requirements, an event of default could result;

•We may be required to dedicate a substantial portion of our cash flow from operations to make required payments on indebtedness, thereby reducing the availability of cash flow for working capital, capital expenditures, acquisitions, investments, and other general corporate activities;

•A downgrade in our credit ratings could negatively impact the interest rate payable on certain of our senior notes and could negatively impact our ability to issue, or the interest rates for, commercial paper notes;

•Covenants relating to our indebtedness may limit our ability to obtain financing for working capital, capital expenditures, acquisitions, investments, and other general corporate activities;

•Covenants relating to our indebtedness may limit our flexibility in planning for, or reacting to, changes in our business and the industry in which we operate;

•We may be more vulnerable to the impact of economic downturns and adverse developments in our business;

•We may be placed at a competitive disadvantage against any less leveraged competitors;

•Our variable interest rate debt will fluctuate with changing market conditions and, accordingly, our interest expense will increase if interest rates rise;

•An increase in our leverage ratio could negatively impact the applicable margins on interest rates charged for borrowings under our revolving credit facility; and

•Future share repurchases may be limited by the maximum leverage ratio and/or maximum capitalization ratio described above.

The occurrence of any one of these events could have a material adverse effect on our business, financial condition, results of operations, prospects, and ability to satisfy our debt service obligations.

We are subject to interest rate risk in connection with our vehicle floorplan payables, revolving credit facility, and commercial paper program that could have a material adverse effect on our profitability.

Our vehicle floorplan payables and revolving credit facility are subject to variable interest rates, and the interest rate for our commercial paper notes varies based on duration and market conditions. Accordingly, our interest expense will fluctuate with changing market conditions and will increase if interest rates rise. Instability or disruptions of the capital markets, including credit markets, or the deterioration of our financial condition due to internal or external factors, could restrict or prohibit our access to capital markets and increase our financing costs. In addition, our net new vehicle inventory carrying cost (new vehicle floorplan interest expense net of floorplan assistance that we receive from automotive manufacturers) may increase due to changes in interest rates, inventory levels, and manufacturer assistance. We cannot assure you that a significant increase in interest rates or decrease in manufacturer floorplan assistance would not have a material adverse effect on our business, financial condition, results of operations, or cash flows.

Risks Relating to Accounting Matters

Goodwill and other intangible assets comprise a significant portion of our total assets. We must test our goodwill and other intangible assets for impairment at least annually, which could result in a material, non-cash write-down of goodwill or franchise rights and could have a material adverse impact on our results of operations and shareholders’ equity.

Goodwill and indefinite-lived intangible assets are subject to impairment assessments at least annually (or more frequently when events or changes in circumstances indicate that an impairment may have occurred) by applying a fair-value based test. Our principal intangible assets are goodwill and our rights under our franchise agreements with vehicle manufacturers. A

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decrease in our market capitalization or profitability increases the risk of goodwill impairment. Negative or declining cash flows or a decline in actual or planned revenues for our stores increases the risk of franchise rights impairment. An impairment loss could have a material adverse impact on our results of operations and shareholders’ equity. We recorded non-cash goodwill impairment charges of $318.3 million during 2020 and non-cash franchise rights impairment charges of $57.5 million and $9.6 million during 2020 and 2019, respectively. See Note 19 of the Notes to Consolidated Financial Statements for more information.

Risks Relating to our Stockholders

Our largest stockholders, as a result of their ownership stakes in us, may have the ability to exert substantial influence over actions to be taken or approved by our stockholders. In addition, future share repurchases and fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock.

Based on filings made with the SEC through February 15, 2022, William H. Gates III beneficially owns approximately 16% of the outstanding shares of our common stock, through holdings by Cascade Investment, L.L.C. (“Cascade”), which is solely owned by Mr. Gates. As a result, Cascade may have the ability to exert substantial influence over actions to be taken or approved by our stockholders, including the election of directors and any transactions involving a change of control.

Based on filings made with the SEC through February 15, 2022, ESL Investments, Inc. together with certain of its investment affiliates (collectively, “ESL”) beneficially owns approximately 16% of the outstanding shares of our common stock. As a result, ESL may also have the ability to exert substantial influence over actions to be taken or approved by our stockholders, including the election of directors and any transactions involving a change of control.

In the future, our largest stockholders may acquire or dispose of shares of our common stock and thereby increase or decrease their ownership stake in us. Significant fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock.

In the aggregate, based on filings made with the SEC through February 15, 2022, William H. Gates III and ESL beneficially own approximately 32% of our outstanding shares. Future share repurchases by the Company, together with any future share purchases by our affiliates, will reduce our “public float” (shares owned by non-affiliate stockholders and available for trading). Such reduction in our public float could decrease the volume of trading and liquidity of our common stock, could lead to increased volatility in the market price of our common stock, or could adversely impact the market price of our common stock.

General Risk Factors

Natural disasters and adverse weather events, including the effects of climate change, can disrupt our business.

Our stores are concentrated in states and regions in the United States, including primarily Florida, Texas, and California, in which actual or threatened natural disasters and severe weather events (such as hail storms, hurricanes, earthquakes, fires, tornadoes, snow storms, and landslides) may disrupt our store operations, which may adversely impact our business, results of operations, financial condition, and cash flows. The effects of climate change serve as a risk multiplier increasing the frequency, severity, and duration of natural disasters and adverse weather events that may affect our business operations. In addition to business interruption, the automotive retail business is subject to substantial risk of property loss due to the significant concentration of property values at store locations.

We cannot assure you that we will not be exposed to uninsured or underinsured losses that could have a material adverse effect on our business, financial condition, results of operations, or cash flows. In addition, natural disasters and adverse weather events, including the effects of climate change, may adversely impact new vehicle production and the global automotive supply chain, which in turn could materially adversely impact our business, results of operations, financial conditions, and cash flows.

ITEM 1B.   UNRESOLVED STAFF COMMENTS

None.

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ITEM 2.   PROPERTIES

We lease our current corporate headquarters facility in Fort Lauderdale, Florida, pursuant to a lease expiring on December 31, 2029. We also own or lease numerous facilities relating to our operations under each of our operating segments. These facilities are located in the following 17 states: Alabama, Arizona, California, Colorado, Florida, Georgia, Illinois, Maryland, Minnesota, Nevada, New York, Ohio, South Carolina, Tennessee, Texas, Virginia, and Washington. These facilities consist primarily of automobile showrooms, display lots, service facilities, collision repair centers, parts distribution centers, supply facilities, automobile storage lots, parking lots, and offices. We believe that our facilities are sufficient for our current needs and are in good condition in all material respects.

ITEM 3.   LEGAL PROCEEDINGS

See Note 20 of the Notes to Consolidated Financial Statements for information about our legal proceedings.

ITEM 4.   MINE SAFETY DISCLOSURES

Not applicable.

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PART II

ITEM 5.   MARKET FOR REGISTRANT’S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES

Market Information, Holders, and Dividends

Our common stock is traded on the New York Stock Exchange under the symbol “AN.” As of February 15, 2022, there were 1,158 holders of record of our common stock. A substantially greater number of holders of our common stock are “street name” or beneficial holders, whose shares are held of record by banks, brokers, and other financial institutions.

We have not declared or paid any cash dividends on our common stock during our two most recent fiscal years. We do not currently anticipate paying cash dividends for the foreseeable future.

Issuer Purchases of Equity Securities

The table below sets forth information with respect to shares of common stock repurchased by AutoNation, Inc. during the three and twelve months ended December 31, 2021.

Period	Total Number of Shares Purchased	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1)	Approximate Dollar Value of Shares That May Yet Be Purchased Under the Plans or Programs     (in millions) (1)
October 1, 2021 – October 31, 2021	400,000	$	124.54	400,000	$	1,226.5
November 1, 2021 – November 30, 2021	1,459,989	$	123.49	1,459,989	$	1,046.2
December 1, 2021 – December 31, 2021	1,271,656	$	119.23	1,271,656	$	894.6
Total for three months ended December 31, 2021	3,131,645			3,131,645
Total for twelve months ended December 31, 2021	22,320,947			22,320,947

(1)Our Board of Directors from time to time authorizes the repurchase of shares of our common stock up to a certain monetary limit. In 2021, all of our shares were repurchased under our stock repurchase program. As of February 15, 2022, $776.3 million remained available under our stock repurchase limit. Our stock repurchase program does not have an expiration date.

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Stock Performance Graph

The following graph and table compare the cumulative total stockholder return on our common stock from December 31, 2016 through December 31, 2021 with the performance of: (i) the Standard & Poor’s (“S&P”) 500 Index and (ii) a self-constructed peer group consisting of other public companies in the automotive retail market, referred to as the “Public Auto Retail Peer Group.” The Public Auto Retail Peer Group consists of Asbury Automotive Group, Inc., CarMax, Inc., Group 1 Automotive, Inc., Lithia Motors, Inc., Penske Automotive Group, Inc., and Sonic Automotive, Inc., and these companies are weighted by market capitalization. We have created these comparisons using data supplied by Research Data Group, Inc. The comparisons reflected in the graph and table are not intended to forecast the future performance of our stock and may not be indicative of future performance. The graph and table assume that $100 was invested on December 31, 2016 in each of our common stock, the S&P 500 Index, and the Public Auto Retail Peer Group and that any dividends were reinvested.

Comparison of Five-Year Cumulative Return for AutoNation, Inc., the S&P 500 Index,

and the Public Auto Retail Peer Group

Copyright© 2022 Standard & Poor's, a division of S&P Global. All rights reserved.

	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021
AutoNation Inc.	100.00	105.51	73.38	99.96	143.45	240.18
S&P 500	100.00	121.83	116.49	153.17	181.35	233.41
Public Auto Retail Peer Group	100.00	99.61	89.69	134.92	169.54	229.02

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ITEM 7.  MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The following discussion should be read in conjunction with Part I, including matters set forth in the “Risk Factors” section of this Form 10-K, and our Consolidated Financial Statements and notes thereto included in Part II, Item 8 of this Form 10-K. This section of this Form 10-K includes discussion of year-to-year comparisons between 2021 and 2020. Discussion of year-to-year comparisons between 2020 and 2019 can be found in “Management’s Discussion and Analysis of Financial Conditions and Results of Operations” in Part II, Item 7 of the Company’s Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

Except to the extent that differences among reportable segments are material to an understanding of our business taken as a whole, we present the discussion in Management’s Discussion and Analysis of Financial Condition and Results of Operations on a consolidated basis.

Overview

AutoNation, Inc., through its subsidiaries, is the largest automotive retailer in the United States. As of December 31, 2021, we owned and operated 339 new vehicle franchises from 247 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores, which we believe include some of the most recognizable and well known in our key markets, sell 33 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 90% of the new vehicles that we sold in 2021, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, Stellantis, Mercedes-Benz, BMW, and Volkswagen (including Audi and Porsche). As of December 31, 2021, we also owned and operated 57 AutoNation-branded collision centers, 9 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, and 3 parts distribution centers.

We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service” (also referred to as “After-Sales”), which includes automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products (also referred to as “Customer Financial Services”), which include vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources.

As of December 31, 2021, we had three reportable segments: Domestic, Import, and Premium Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford, and Stellantis. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, Subaru, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, Audi, Lexus, and Jaguar Land Rover. The franchises in each segment also sell used vehicles, parts and automotive repair and maintenance services, and automotive finance and insurance products.

For the year ended December 31, 2021, new vehicle sales accounted for 47% of our total revenue and 24% of our total gross profit. Used vehicle sales accounted for 33% of our total revenue and 14% of our total gross profit. Our parts and service operations, while comprising 14% of our total revenue, contributed 34% of our total gross profit. Our finance and insurance sales, while comprising 5% of our total revenue, contributed 28% of our total gross profit.

Market Conditions

Full-year U.S. industry new vehicle unit sales were 15.1 million in 2021, as compared to 14.6 million in 2020 and 17 million in 2019. During 2021, the demand for vehicles was strong and exceeded supply. While market demand for new and used vehicles remains high primarily due to low interest rates and a consumer desire for personal transportation, there continues to be a shortage of available new vehicles for sale driven largely by certain component shortages and disruptions in the manufacturers’ supply chains. This demand and supply imbalance has resulted in higher levels of profitability for available new and used vehicles. The reduced levels of new vehicle availability is currently expected to continue well into 2022; however, there is still significant uncertainty as to when new vehicle availability will improve, as well as duration and/or degree of the higher levels of profitability being realized during this time.

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Results of Operations

We had net income from continuing operations of $1.4 billion and diluted earnings per share of $18.31 in 2021, as compared to net income from continuing operations of $381.8 million and diluted earnings per share of $4.30 in 2020.

Our total gross profit increased 39% during 2021, driven by increases in new vehicle gross profit of 106%, used vehicle gross profit of 50%, finance and insurance gross profit of 31%, and parts and service gross profit of 15%, each as compared to 2020. New and used vehicle gross profit benefited from an increase in unit volume and gross profit per vehicle retailed (“PVR”) resulting from strong demand and historically low new vehicle inventory levels due to certain component shortages in the manufacturers’ supply chains. Finance and insurance gross profit benefited from an increase in finance and insurance gross profit PVR and the increase in vehicle unit volume. Parts and service gross profit benefited primarily from increases in gross profit from customer-pay service and the preparation of vehicles for sale due to increases in repair order volume, which was adversely impacted by the COVID-19 pandemic in the prior year.

SG&A expenses increased largely due to performance-driven increases in compensation expense. With improvements in gross profit and our continued focus on cost control, SG&A expenses as a percentage of gross profit decreased to 58.1% during 2021, from 67.9% in the same period in 2020.

Net income from continuing operations during 2021 and 2020, benefited from after-tax gains of $8.3 million and $97.5 million, respectively, related to sales of a minority equity investment as well as changes in the fair value of other minority equity investments held as of the end of each respective year. During 2021, net income from continuing operations also benefited from after-tax gains related to store/property divestitures, net of asset impairments, of $10.9 million. During 2020, net income from continuing operations was adversely impacted by non-cash after-tax goodwill and franchise rights impairment charges totaling $308.4 million and after-tax charges incurred in connection with the closure of our aftermarket collision parts (“ACP”) business of $27.8 million.

Strategic Initiatives

We plan to expand our AutoNation USA used vehicle stores and are targeting to have over 130 stores by the end of 2026. We are planning 17 new store openings over 2021 and 2022. We anticipate that the initial capital investment for each new store will be approximately $10 million to $12 million on average. The planned expansion may be impacted by a number of variables, including customer adoption, market conditions, availability of used vehicle inventory, and our ability to identify, acquire, and build out suitable locations in a timely manner.

Inventory Management

Our new and used vehicle inventories are stated at the lower of cost or net realizable value in our Consolidated Balance Sheets. We monitor our vehicle inventory levels based on current economic conditions and seasonal sales trends. Our new vehicle inventory units at December 31, 2021 and 2020, were 10,090 and 43,747, respectively. By historical standards, our inventory unit levels were significantly lower at December 31, 2021, driven by strong demand and the component shortages in the manufacturers’ supply chains. Inadequate levels of new vehicle availability could adversely affect our financial results.

We have typically not experienced significant losses on the sale of new vehicle inventory, in part due to incentives provided by manufacturers to promote sales of new vehicles and our inventory management practices. We monitor our new vehicle inventory values as compared to net realizable values, and had no new vehicle inventory write-downs at December 31, 2021 or 2020.

We recondition the majority of used vehicles acquired for retail sale in our parts and service departments and capitalize the related costs to the used vehicle inventory. We monitor our used vehicle inventory values as compared to net realizable values. Typically, used vehicles that are not sold on a retail basis are sold at wholesale auctions. Our used vehicle inventory balance was net of cumulative write-downs of $3.6 million at December 31, 2021, and $3.4 million at December 31, 2020.

Parts, accessories, and other inventory are carried at the lower of cost or net realizable value. We estimate the amount of potentially damaged and/or obsolete inventory based upon historical experience, manufacturer return policies, and industry trends. Our parts, accessories, and other inventory balance was net of cumulative write-downs of $5.8 million at December 31, 2021, and $6.5 million at December 31, 2020.

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Critical Accounting Estimates

We prepare our Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles, which require us to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenue and expenses during the reporting period. We evaluate our estimates on an ongoing basis and we base our estimates on historical experience and various other assumptions we believe to be reasonable. Actual outcomes could differ materially from those estimates in a manner that could have a material effect on our Consolidated Financial Statements. Set forth below are the accounting estimates that we have identified as critical to our business operations and an understanding of our results of operations, based on the high degree of judgment or complexity in their application. See Note 1 of the Notes to Consolidated Financial Statements for a discussion of other significant accounting policies.

Goodwill

Goodwill for our reporting units is tested for impairment annually on April 30 or more frequently when events or changes in circumstances indicate that the carrying value of a reporting unit exceeds its fair value. We may first perform a qualitative assessment to determine whether it is more likely than not that a reporting unit is impaired. When assessing goodwill for impairment, our decision to perform a qualitative assessment for an individual reporting unit is influenced by a number of factors, including the carrying value of the reporting unit’s goodwill, the significance of the excess of the reporting unit’s estimated fair value over carrying value at the last quantitative assessment date, the amount of time in between quantitative fair value assessments, macroeconomic conditions, automotive industry and market conditions, and our operating performance.

If we do not perform a qualitative assessment, or if we determine that it is not more likely than not that the fair value of the reporting unit exceeds its carrying amount, we calculate the estimated fair value of the reporting unit using an “income” valuation approach, which discounts projected free cash flows of the reporting unit at a computed weighted average cost of capital as the discount rate. The income valuation approach requires the use of significant estimates and assumptions, which include revenue growth rates and future operating margins used to calculate projected future cash flows, weighted average cost of capital, and future economic and market conditions. In connection with this process, we also reconcile the estimated aggregate fair values of our reporting units to our market capitalization, including consideration of a control premium based upon our stock price and/or average stock price over a reasonable period as of the measurement date. We base our cash flow forecasts on our knowledge of the automotive industry, our recent performance, our expectations of our future performance, and other assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We also make certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of our reporting units.

Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment for our annual impairment testing as of April 30, 2021, and we determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts.

During the first quarter of 2020, in light of the uncertainty surrounding the COVID-19 pandemic and the decrease in our market capitalization as of March 31, 2020, we concluded that a triggering event had occurred potentially indicating that the fair values of our reporting units were less than their carrying values as of March 31, 2020. Therefore, we performed quantitative goodwill impairment tests for each of our reporting units as of March 31, 2020. As a result of these impairment tests, during the three months ended March 31, 2020, we recorded non-cash goodwill impairment charges totaling $318.3 million, of which $257.4 million related to our Premium Luxury reporting unit, $41.6 million related to our Collision Centers reporting unit, and $19.3 million related to our Parts Centers reporting unit. Goodwill associated with our Premium Luxury reporting unit was partially impaired and goodwill associated with our Collision Centers and Parts Centers reporting units was fully impaired. The fair values of our Domestic and Import reporting units substantially exceeded their carrying values. Therefore, the most significant impact of a change in the assumptions used in determining our goodwill impairment as of March 31, 2020, was related to our Premium Luxury reporting unit. As noted above, the goodwill impairment testing process requires the estimated aggregate fair values of our reporting units to be reconciled with our market capitalization, including consideration of a control premium, based upon our stock price and/or average stock price over a reasonable period as of the measurement date. The COVID-19 pandemic had a significant adverse impact on the U.S. stock market during the first quarter of 2020, and our closing stock price declined significantly as of March 31, 2020.

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As a result, as of March 31, 2020, our market capitalization and, therefore, the estimated fair values of our reporting units, significantly decreased. As a measure of sensitivity, a 50 basis point increase in the discount rate would have resulted in an increase to the goodwill impairment charge of approximately $100 million. This result and discussion is not intended to address all potential outcomes that could have resulted if different assumptions had been used in determining our 2020 goodwill impairment given the number of assumptions used in determining the impairment and the degree of sensitivity to changes in such assumptions in the determination of the fair value of the Company and its assets and liabilities.

As of December 31, 2021, we have $228.7 million of goodwill related to the Domestic reporting unit, $517.9 million related to the Import reporting unit, $484.1 million related to the Premium Luxury reporting unit, and $4.6 million related to the Collision Centers reporting unit.

Other Intangible Assets

Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives and are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred. We may first perform a qualitative assessment to determine whether it is more likely than not that a franchise right asset is impaired. The quantitative impairment test for franchise rights requires the comparison of the franchise rights’ estimated fair value to carrying value by store. Fair values of rights under franchise agreements are estimated using unobservable (Level 3) inputs by discounting expected future cash flows of the store. The forecasted cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates, margins, working capital requirements, capital expenditures, and cost of capital, for which we utilize certain market participant-based assumptions, using third-party industry projections, economic projections, and other marketplace data we believe to be reasonable.

We elected to perform quantitative tests for our annual franchise rights impairment testing as of April 30, 2021, and no impairment charges resulted from these quantitative tests.

During the first quarter of 2020, we concluded that, as a result of the impacts from the COVID-19 pandemic, a triggering event had occurred that indicated the fair values of our franchise rights may have been less than their carrying values as of March 31, 2020. We performed quantitative impairment tests as of March 31, 2020, and as a result, we identified eight stores with franchise rights carrying values that exceeded their estimated fair values, and we recorded non-cash franchise rights impairment charges of $57.5 million during the first quarter of 2020. For our April 30, 2020 annual impairment test, we elected to perform quantitative franchise rights impairment tests, and no additional impairment charges resulted from these quantitative tests. We identified seven stores that, while they each had franchise rights fair value in excess of or equal to carrying value, had lower relative performance compared to our total store population. The remainder of our stores had franchise rights with calculated fair values that substantially exceeded their carrying values.

If the fair value of each of our franchise rights had been determined to be a hypothetical 10% lower as of the valuation date of April 30, 2021, no impairment would have resulted. If the fair value of each of our franchise rights had been determined to be a hypothetical 10% lower as of the valuation date of April 30, 2020, the resulting incremental charge would have been less than $1 million. The effect of a hypothetical 10% decrease in fair value estimates is not intended to provide a sensitivity analysis of every potential outcome.

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Reported Operating Data

	Years Ended December 31,
($ in millions, except per vehicle data)					2021 vs. 2020					2020 vs. 2019
	2021		2020		Variance Favorable / (Unfavorable)		% Variance	2019		Variance Favorable / (Unfavorable)		% Variance
Revenue:
New vehicle	$	12,081.7	$	10,418.6	$	1,663.1	16.0	$	11,166.5	$	(747.9)	(6.7)
Retail used vehicle	8,062.4		5,260.5		2,801.9		53.3	5,160.3		100.2		1.9
Wholesale	576.4		340.8		235.6		69.1	306.2		34.6		11.3
Used vehicle	8,638.8		5,601.3		3,037.5		54.2	5,466.5		134.8		2.5
Finance and insurance, net	1,384.5		1,059.3		325.2		30.7	1,023.3		36.0		3.5
Total variable operations(1)	22,105.0		17,079.2		5,025.8		29.4	17,656.3		(577.1)		(3.3)
Parts and service	3,706.6		3,257.4		449.2		13.8	3,572.1		(314.7)		(8.8)
Other	32.4		53.4		(21.0)			107.3		(53.9)
Total revenue	$	25,844.0	$	20,390.0	$	5,454.0	26.7	$	21,335.7	$	(945.7)	(4.4)
Gross profit:
New vehicle	$	1,201.6	$	584.1	$	617.5	105.7	$	503.9	$	80.2	15.9
Retail used vehicle	622.3		414.5		207.8		50.1	346.8		67.7		19.5
Wholesale	65.8		44.5		21.3			21.2		23.3
Used vehicle	688.1		459.0		229.1		49.9	368.0		91.0		24.7
Finance and insurance	1,384.5		1,059.3		325.2		30.7	1,023.3		36.0		3.5
Total variable operations(1)	3,274.2		2,102.4		1,171.8		55.7	1,895.2		207.2		10.9
Parts and service	1,672.7		1,460.8		211.9		14.5	1,622.6		(161.8)		(10.0)
Other	5.7		3.2		2.5			5.2		(2.0)
Total gross profit	4,952.6		3,566.4		1,386.2		38.9	3,523.0		43.4		1.2
Selling, general, and administrative expenses	2,876.2		2,422.0		(454.2)		(18.8)	2,558.6		136.6		5.3
Depreciation and amortization	193.3		198.9		5.6			180.5		(18.4)
Goodwill impairment	—		318.3		318.3			—		(318.3)
Franchise rights impairment	—		57.5		57.5			9.6		(47.9)
Other (income) expense, net	(19.7)		6.5		26.2			(49.3)		(55.8)
Operating income	1,902.8		563.2		1,339.6		237.9	823.6		(260.4)		(31.6)
Non-operating income (expense) items:
Floorplan interest expense	(25.7)		(63.8)		38.1			(138.4)		74.6
Other interest expense	(93.0)		(93.7)		0.7			(106.7)		13.0
Other income, net	24.3		144.4		(120.1)			34.1		110.3
Income from continuing operations before income taxes	$	1,808.4	$	550.1	$	1,258.3	228.7	$	612.6	$	(62.5)	(10.2)
Retail vehicle unit sales:
New vehicle	262,403		249,654		12,749		5.1	282,602		(32,948)		(11.7)
Used vehicle	304,364		241,182		63,182		26.2	246,113		(4,931)		(2.0)
	566,767		490,836		75,931		15.5	528,715		(37,879)		(7.2)
Revenue per vehicle retailed:
New vehicle	$	46,043	$	41,732	$	4,311	10.3	$	39,513	$	2,219	5.6
Used vehicle	$	26,489	$	21,811	$	4,678	21.4	$	20,967	$	844	4.0
Gross profit per vehicle retailed:
New vehicle	$	4,579	$	2,340	$	2,239	95.7	$	1,783	$	557	31.2
Used vehicle	$	2,045	$	1,719	$	326	19.0	$	1,409	$	310	22.0
Finance and insurance	$	2,443	$	2,158	$	285	13.2	$	1,935	$	223	11.5
Total variable operations(2)	$	5,661	$	4,193	$	1,468	35.0	$	3,544	$	649	18.3
(1) Total variable operations includes new vehicle, used vehicle (retail and wholesale), and finance and insurance results.
(2) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales.

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	Years Ended December 31,
	2021 (%)	2020 (%)	2019 (%)
Revenue mix percentages:
New vehicle	46.7	51.1	52.3
Used vehicle	33.4	27.5	25.6
Parts and service	14.3	16.0	16.7
Finance and insurance, net	5.4	5.2	4.8
Other	0.2	0.2	0.6
Total	100.0	100.0	100.0
Gross profit mix percentages:
New vehicle	24.3	16.4	14.3
Used vehicle	13.9	12.9	10.4
Parts and service	33.8	41.0	46.1
Finance and insurance	28.0	29.7	29.0
Other	—	—	0.2
Total	100.0	100.0	100.0
Operating items as a percentage of revenue:
Gross profit:
New vehicle	9.9	5.6	4.5
Used vehicle-retail	7.7	7.9	6.7
Parts and service	45.1	44.8	45.4
Total	19.2	17.5	16.5
Selling, general, and administrative expenses	11.1	11.9	12.0
Operating income	7.4	2.8	3.9
Other operating items as a percentage of total gross profit:
Selling, general, and administrative expenses	58.1	67.9	72.6
Operating income	38.4	15.8	23.4
	December 31,
	2021	2020
Days supply:
New vehicle (industry standard of selling days)	9 days	42 days
Used vehicle (trailing calendar month days)	40 days	39 days

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Same Store Operating Data

We have presented below our operating results on a same store basis to reflect our internal performance. The “Same Store” amounts presented below include the results of our stores for the identical months in each period presented in the comparison, commencing with the first full month in which the store was owned by us. Results from divested stores are excluded from both current and prior periods. Therefore, the amounts presented in the year 2020 column that is being compared to the year 2021 column may differ from the amounts presented in the year 2020 column that is being compared to the year 2019 column. We believe the presentation of this information provides a meaningful comparison of period-over-period results of our operations.

	Years Ended December 31,							Years Ended December 31,
($ in millions, except per vehicle data)	2021		2020		Variance Favorable / (Unfavorable)		% Variance	2020		2019		Variance Favorable / (Unfavorable)		% Variance
Revenue:
New vehicle	$	11,989.1	$	10,400.6	$	1,588.5	15.3	$	10,414.3	$	11,046.5	$	(632.2)	(5.7)
Retail used vehicle	7,965.2		5,249.9		2,715.3		51.7	5,257.6		5,096.6		161.0		3.2
Wholesale	572.6		340.3		232.3		68.3	340.7		302.3		38.4		12.7
Used vehicle	8,537.8		5,590.2		2,947.6		52.7	5,598.3		5,398.9		199.4		3.7
Finance and insurance, net	1,374.5		1,057.4		317.1		30.0	1,059.1		1,012.9		46.2		4.6
Total variable operations(1)	21,901.4		17,048.2		4,853.2		28.5	17,071.7		17,458.3		(386.6)		(2.2)
Parts and service	3,635.0		3,149.1		485.9		15.4	3,201.1		3,457.0		(255.9)		(7.4)
Other	32.4		52.9		(20.5)			53.0		107.0		(54.0)
Total revenue	$	25,568.8	$	20,250.2	$	5,318.6	26.3	$	20,325.8	$	21,022.3	$	(696.5)	(3.3)
Gross profit:
New vehicle	$	1,190.3	$	583.2	$	607.1	104.1	$	583.8	$	502.1	$	81.7	16.3
Retail used vehicle	614.7		413.7		201.0		48.6	414.7		344.5		70.2		20.4
Wholesale	67.0		44.6		22.4			44.6		21.7		22.9
Used vehicle	681.7		458.3		223.4		48.7	459.3		366.2		93.1		25.4
Finance and insurance	1,374.5		1,057.4		317.1		30.0	1,059.1		1,012.9		46.2		4.6
Total variable operations(1)	3,246.5		2,098.9		1,147.6		54.7	2,102.2		1,881.2		221.0		11.7
Parts and service	1,641.4		1,448.6		192.8		13.3	1,469.7		1,584.4		(114.7)		(7.2)
Other	5.7		2.7		3.0			2.7		5.2		(2.5)
Total gross profit	$	4,893.6	$	3,550.2	$	1,343.4	37.8	$	3,574.6	$	3,470.8	$	103.8	3.0
Retail vehicle unit sales:
New vehicle	260,546		249,058		11,488		4.6	249,595		278,666		(29,071)		(10.4)
Used vehicle	300,689		240,411		60,278		25.1	241,048		242,146		(1,098)		(0.5)
Total	561,235		489,469		71,766		14.7	490,643		520,812		(30,169)		(5.8)
Revenue per vehicle retailed:
New vehicle	$	46,015	$	41,760	$	4,255	10.2	$	41,725	$	39,641	$	2,084	5.3
Used vehicle	$	26,490	$	21,837	$	4,653	21.3	$	21,811	$	21,048	$	763	3.6
Gross profit per vehicle retailed:
New vehicle	$	4,568	$	2,342	$	2,226	95.0	$	2,339	$	1,802	$	537	29.8
Used vehicle	$	2,044	$	1,721	$	323	18.8	$	1,720	$	1,423	$	297	20.9
Finance and insurance	$	2,449	$	2,160	$	289	13.4	$	2,159	$	1,945	$	214	11.0
Total variable operations(2)	$	5,665	$	4,197	$	1,468	35.0	$	4,194	$	3,570	$	624	17.5
(1) Total variable operations includes new vehicle, used vehicle (retail and wholesale), and finance and insurance results.
(2) Total variable operations gross profit per vehicle retailed is calculated by dividing the sum of new vehicle, retail used vehicle, and finance and insurance gross profit by total retail vehicle unit sales.

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	Years Ended December 31,		Years Ended December 31,
	2021 (%)	2020 (%)	2020 (%)	2019 (%)
Revenue mix percentages:
New vehicle	46.9	51.4	51.2	52.5
Used vehicle	33.4	27.6	27.5	25.7
Parts and service	14.2	15.6	15.7	16.4
Finance and insurance, net	5.4	5.2	5.2	4.8
Other	0.1	0.2	0.4	0.6
Total	100.0	100.0	100.0	100.0
Gross profit mix percentages:
New vehicle	24.3	16.4	16.3	14.5
Used vehicle	13.9	12.9	12.8	10.6
Parts and service	33.5	40.8	41.1	45.6
Finance and insurance	28.1	29.8	29.6	29.2
Other	0.2	0.1	0.2	0.1
Total	100.0	100.0	100.0	100.0
Operating items as a percentage of revenue:
Gross profit:
New vehicle	9.9	5.6	5.6	4.5
Used vehicle-retail	7.7	7.9	7.9	6.8
Parts and service	45.2	46.0	45.9	45.8
Total	19.1	17.5	17.6	16.5

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New Vehicle

	Years Ended December 31,
($ in millions, except per vehicle data)	2021		2020		2021 vs. 2020					2020 vs. 2019
					Variance Favorable / (Unfavorable)		% Variance	2019		Variance Favorable / (Unfavorable)		% Variance
Reported:
Revenue	$	12,081.7	$	10,418.6	$	1,663.1	16.0	$	11,166.5	$	(747.9)	(6.7)
Gross profit	$	1,201.6	$	584.1	$	617.5	105.7	$	503.9	$	80.2	15.9
Retail vehicle unit sales	262,403		249,654		12,749		5.1	282,602		(32,948)		(11.7)
Revenue per vehicle retailed	$	46,043	$	41,732	$	4,311	10.3	$	39,513	$	2,219	5.6
Gross profit per vehicle retailed	$	4,579	$	2,340	$	2,239	95.7	$	1,783	$	557	31.2
Gross profit as a percentage of revenue	9.9%		5.6%					4.5%
Inventory days supply (industry standard of selling days)	9 days		42 days

	Years Ended December 31,
	2021		2020		2021 vs. 2020			2020		2019		2020 vs. 2019
					Variance Favorable / (Unfavorable)		% Variance					Variance Favorable / (Unfavorable)		% Variance
Same Store:
Revenue	$	11,989.1	$	10,400.6	$	1,588.5	15.3	$	10,414.3	$	11,046.5	$	(632.2)	(5.7)
Gross profit	$	1,190.3	$	583.2	$	607.1	104.1	$	583.8	$	502.1	$	81.7	16.3
Retail vehicle unit sales	260,546		249,058		11,488		4.6	249,595		278,666		(29,071)		(10.4)
Revenue per vehicle retailed	$	46,015	$	41,760	$	4,255	10.2	$	41,725	$	39,641	$	2,084	5.3
Gross profit per vehicle retailed	$	4,568	$	2,342	$	2,226	95.0	$	2,339	$	1,802	$	537	29.8
Gross profit as a percentage of revenue	9.9%		5.6%					5.6%		4.5%

The following discussion of new vehicle results is on a same store basis. The difference between reported amounts and same store amounts in the above tables of $92.6 million, $18.0 million, and $120.0 million in new vehicle revenue and $11.3 million, $0.9 million, and $1.8 million in new vehicle gross profit for 2021, 2020, and 2019, respectively, is related to acquisition and divestiture activity, as well as new add-point openings, as applicable in a given year.

2021 compared to 2020

Same store new vehicle revenue increased during 2021, as compared to 2020, due to increases in same store revenue PVR and same store unit volume. Same store unit volume in the prior year was significantly adversely impacted by the COVID-19 pandemic, particularly during the last two weeks of March 2020 through April 2020. Same store unit volume in the current year benefited from an increase in customer demand, partially offset by historically low inventory levels due to manufacturer supply shortages.

Same store revenue PVR and gross profit PVR both increased during 2021, as compared to 2020, primarily due to strong demand and reduced availability of new vehicle inventory.

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Net New Vehicle Inventory Carrying Benefit (Cost)

The following table details net new vehicle inventory carrying benefit (cost), consisting of new vehicle floorplan interest expense net of floorplan assistance earned (amounts received from manufacturers specifically to support store financing of new vehicle inventory). Floorplan assistance is accounted for as a component of new vehicle gross profit in accordance with GAAP.

	Years Ended December 31,
($ in millions)	2021		2020		Variance 2021 vs. 2020		2019		Variance 2020 vs. 2019
Floorplan assistance	$	121.4	$	110.7	$	10.7	$	111.8	$	(1.1)
New vehicle floorplan interest expense	(22.3)		(58.0)		35.7		(128.1)		70.1
Net new vehicle inventory carrying benefit (cost)	$	99.1	$	52.7	$	46.4	$	(16.3)	$	69.0

2021 compared to 2020

The net new vehicle inventory carrying benefit increased during 2021, as compared to the same period in 2020, due to a decrease in floorplan interest expense and an increase in floorplan assistance. Floorplan interest expense decreased due to lower average floorplan balances and lower average interest rates. Floorplan interest rates are variable and, therefore, increase and decrease with changes in the underlying benchmark interest rates. Floorplan assistance increased due to increases in unit volume and the average floorplan assistance rate per unit.

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Used Vehicle

	Years Ended December 31,
					2021 vs. 2020					2020 vs. 2019
($ in millions, except per vehicle data)	2021		2020		Variance Favorable / (Unfavorable)		% Variance	2019		Variance Favorable / (Unfavorable)		% Variance
Reported:
Retail revenue	$	8,062.4	$	5,260.5	$	2,801.9	53.3	$	5,160.3	$	100.2	1.9
Wholesale revenue	576.4		340.8		235.6		69.1	306.2		34.6		11.3
Total revenue	$	8,638.8	$	5,601.3	$	3,037.5	54.2	$	5,466.5	$	134.8	2.5
Retail gross profit	$	622.3	$	414.5	$	207.8	50.1	$	346.8	$	67.7	19.5
Wholesale gross profit	65.8		44.5		21.3			21.2		23.3
Total gross profit	$	688.1	$	459.0	$	229.1	49.9	$	368.0	$	91.0	24.7
Retail vehicle unit sales	304,364		241,182		63,182		26.2	246,113		(4,931)		(2.0)
Revenue per vehicle retailed	$	26,489	$	21,811	$	4,678	21.4	$	20,967	$	844	4.0
Gross profit per vehicle retailed	$	2,045	$	1,719	$	326	19.0	$	1,409	$	310	22.0
Gross profit as a percentage of retail revenue	7.7%		7.9%					6.7%
Inventory days supply (trailing calendar month days)	40 days		39 days

	Years Ended December 31,
	2021		2020		2021 vs. 2020			2020		2019		2020 vs. 2019
					Variance Favorable / (Unfavorable)		% Variance					Variance Favorable / (Unfavorable)		% Variance
Same Store:
Retail revenue	$	7,965.2	$	5,249.9	$	2,715.3	51.7	$	5,257.6	$	5,096.6	$	161.0	3.2
Wholesale revenue	572.6		340.3		232.3		68.3	340.7		302.3		38.4		12.7
Total revenue	$	8,537.8	$	5,590.2	$	2,947.6	52.7	$	5,598.3	$	5,398.9	$	199.4	3.7
Retail gross profit	$	614.7	$	413.7	$	201.0	48.6	$	414.7	$	344.5	$	70.2	20.4
Wholesale gross profit	67.0		44.6		22.4			44.6		21.7		22.9
Total gross profit	$	681.7	$	458.3	$	223.4	48.7	$	459.3	$	366.2	$	93.1	25.4
Retail vehicle unit sales	300,689		240,411		60,278		25.1	241,048		242,146		(1,098)		(0.5)
Revenue per vehicle retailed	$	26,490	$	21,837	$	4,653	21.3	$	21,811	$	21,048	$	763	3.6
Gross profit per vehicle retailed	$	2,044	$	1,721	$	323	18.8	$	1,720	$	1,423	$	297	20.9
Gross profit as a percentage of retail revenue	7.7%		7.9%					7.9%		6.8%

The following discussion of used vehicle results is on a same store basis. The difference between reported amounts and same store amounts in the above tables of $97.2 million, $10.6 million, and $63.7 million in retail used vehicle revenue and $7.6 million, $0.8 million, and $2.3 million in retail used vehicle gross profit for 2021, 2020, and 2019, respectively, is related to acquisition and divestiture activity, as well as the opening of new add-points and AutoNation USA stores, as applicable in a given year.

2021 compared to 2020

Same store retail used vehicle revenue increased during 2021, as compared to 2020, due to increases in same store revenue PVR and same store unit volume. Same store unit volume in the prior year was significantly adversely impacted by the COVID-19 pandemic, particularly during the last two weeks of March 2020 through April 2020. Market demand for used vehicles in the current year continued to increase due in part to decreased availability of new vehicles.

Same store revenue PVR and gross profit PVR both increased during 2021, as compared to 2020, primarily due to increased demand for used vehicles and reduced availability of new vehicle inventory. In addition, same store gross profit PVR benefited from a shift in mix to trade-ins and used vehicles acquired through our “We’ll Buy Your Car” program, which both have relatively higher average gross profit PVR.

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Parts & Service

	Years Ended December 31,
					2021 vs. 2020					2020 vs. 2019
($ in millions)	2021		2020		Variance Favorable / (Unfavorable)		%  Variance	2019		Variance Favorable / (Unfavorable)		%  Variance
Reported:
Revenue	$	3,706.6	$	3,257.4	$	449.2	13.8	$	3,572.1	$	(314.7)	(8.8)
Gross profit	$	1,672.7	$	1,460.8	$	211.9	14.5	$	1,622.6	$	(161.8)	(10.0)
Gross profit as a percentage of revenue	45.1%		44.8%					45.4%

	Years Ended December 31,
					2021 vs. 2020							2020 vs. 2019
	2021		2020		Variance Favorable / (Unfavorable)		%  Variance	2020		2019		Variance Favorable / (Unfavorable)		%  Variance
Same Store:
Revenue	$	3,635.0	$	3,149.1	$	485.9	15.4	$	3,201.1	$	3,457.0	$	(255.9)	(7.4)
Gross profit	$	1,641.4	$	1,448.6	$	192.8	13.3	$	1,469.7	$	1,584.4	$	(114.7)	(7.2)
Gross profit as a percentage of revenue	45.2%		46.0%					45.9%		45.8%

Parts and service revenue is primarily derived from vehicle repairs paid directly by customers or via reimbursement from manufacturers and others under warranty programs, as well as from wholesale parts sales, collision services, and the preparation of vehicles for sale.

The following discussion of parts and service is on a same store basis. The difference between reported amounts and same store amounts in the above tables of $71.6 million, $108.3 million, and $115.1 million in parts and service revenue and $31.3 million, $12.2 million, and $38.2 million in parts and service gross profit for 2021, 2020, and 2019, respectively, is related to acquisition and divestiture activity, the closure of our ACP business, and the opening of new add-points and AutoNation USA stores, as applicable in a given year.

2021 compared to 2020

During 2021, same store parts and service gross profit increased compared to the same period in 2020, primarily due to increases in gross profit associated with customer-pay service of $91.6 million, the preparation of vehicles for sale of $51.9 million, and wholesale parts sales of $26.9 million, partially offset by a decrease in gross profit associated with warranty service of $23.1 million.

Gross profit associated with customer-pay service and the preparation of vehicles for sale both benefited from an increase in repair order volume compared to the prior year, which was adversely impacted by the COVID-19 pandemic, as well as higher value repair orders. Gross profit associated with preparation of vehicles for sale also benefited from improved margin performance. Gross profit associated with wholesale parts sales benefited from an increase in volume. Gross profit associated with manufacturer warranty service was adversely impacted by a decrease in repair order volume, partially driven by a decline in units in our primary service base as a result of lower new vehicle unit sales in the current and prior year.

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Finance and Insurance

	Years Ended December 31,
($ in millions, except per vehicle data)					2021 vs. 2020					2020 vs. 2019
	2021		2020		Variance Favorable / (Unfavorable)		%  Variance	2019		Variance Favorable / (Unfavorable)		%  Variance
Reported:
Revenue and gross profit	$	1,384.5	$	1,059.3	$	325.2	30.7	$	1,023.3	$	36.0	3.5
Gross profit per vehicle retailed	$	2,443	$	2,158	$	285	13.2	$	1,935	$	223	11.5

	Years Ended December 31,
					2021 vs. 2020							2020 vs. 2019
	2021		2020		Variance Favorable / (Unfavorable)		%  Variance	2020		2019		Variance Favorable / (Unfavorable)		%  Variance
Same Store:
Revenue and gross profit	$	1,374.5	$	1,057.4	$	317.1	30.0	$	1,059.1	$	1,012.9	$	46.2	4.6
Gross profit per vehicle retailed	$	2,449	$	2,160	$	289	13.4	$	2,159	$	1,945	$	214	11.0

Revenue on finance and insurance products represents commissions earned by us for the placement of: (i) loans and leases with financial institutions in connection with customer vehicle purchases financed, (ii) vehicle service contracts with third-party providers, and (iii) other vehicle protection products with third-party providers. We sell these products on a commission basis, and we also participate in the future underwriting profit on certain products pursuant to retrospective commission arrangements with the issuers of those products.

The following discussion of finance and insurance results is on a same store basis. The difference between reported amounts and same store amounts in finance and insurance revenue and gross profit in the above tables of $10.0 million, $1.9 million, and $10.4 million for 2021, 2020, and 2019, respectively, is related to acquisition and divestiture activity, as well as the opening of new add-points and AutoNation USA stores, as applicable in a given year.

2021 compared to 2020

Same store finance and insurance revenue and gross profit increased during 2021, as compared to 2020, due to increases in finance and insurance gross profit PVR and vehicle unit volume. The increase in finance and insurance gross profit PVR was primarily due to higher realized margins on vehicle service contracts and an increase in product penetration. Finance and insurance gross profit PVR also benefited from increases in gross profit per transaction associated with arranging customer financing and amounts financed per transaction.

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Segment Results

In the following table of financial data, revenue and segment income of our reportable segments are reconciled to consolidated revenue and consolidated operating income, respectively.

	Years Ended December 31,
					2021 vs. 2020					2020 vs. 2019
($ in millions)	2021		2020		Variance Favorable / (Unfavorable)		% Variance	2019		Variance Favorable / (Unfavorable)		% Variance
Revenue:
Domestic	$	7,959.9	$	6,490.6	$	1,469.3	22.6	$	6,671.4	$	(180.8)	(2.7)
Import	7,798.5		5,988.0		1,810.5		30.2	6,468.7		(480.7)		(7.4)
Premium Luxury	9,229.9		7,202.8		2,027.1		28.1	7,434.8		(232.0)		(3.1)
Total	24,988.3		19,681.4		5,306.9		27.0	20,574.9		(893.5)		(4.3)
Corporate and other	855.7		708.6		147.1		20.8	760.8		(52.2)		(6.9)
Total consolidated revenue	$	25,844.0	$	20,390.0	$	5,454.0	26.7	$	21,335.7	$	(945.7)	(4.4)
Segment income(1):
Domestic	$	595.8	$	355.2	$	240.6	67.7	$	257.6	$	97.6	37.9
Import	714.7		386.4		328.3		85.0	318.6		67.8		21.3
Premium Luxury	837.4		478.2		359.2		75.1	381.1		97.1		25.5
Total	2,147.9		1,219.8		928.1		76.1	957.3		262.5		27.4
Corporate and other	(270.8)		(720.4)		449.6			(272.1)		(448.3)
Floorplan interest expense	25.7		63.8		38.1			138.4		74.6
Operating income	$	1,902.8	$	563.2	$	1,339.6	237.9	$	823.6	$	(260.4)	(31.6)

Retail new vehicle unit sales:
Domestic	76,211	80,687	(4,476)	(5.5)	88,404	(7,717)	(8.7)
Import	118,863	109,077	9,786	9.0	128,183	(19,106)	(14.9)
Premium Luxury	67,329	59,890	7,439	12.4	66,015	(6,125)	(9.3)
	262,403	249,654	12,749	5.1	282,602	(32,948)	(11.7)
Retail used vehicle unit sales:
Domestic	105,031	83,406	21,625	25.9	87,344	(3,938)	(4.5)
Import	103,418	82,841	20,577	24.8	86,679	(3,838)	(4.4)
Premium Luxury	83,447	66,611	16,836	25.3	64,768	1,843	2.8
	291,896	232,858	59,038	25.4	238,791	(5,933)	(2.5)
(1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.

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Domestic

The Domestic segment operating results included the following:

	Years Ended December 31,
					2021 vs. 2020					2020 vs. 2019
($ in millions)	2021		2020		Variance Favorable / (Unfavorable)		% Variance	2019		Variance Favorable / (Unfavorable)		% Variance
Revenue:
New vehicle	$	3,601.8	$	3,411.1	$	190.7	5.6	$	3,502.5	$	(91.4)	(2.6)
Used vehicle	2,875.0		1,781.4		1,093.6		61.4	1,769.5		11.9		0.7
Parts and service	1007.6		891.5		116.1		13.0	959.0		(67.5)		(7.0)
Finance and insurance, net	469.1		370.5		98.6		26.6	354.6		15.9		4.5
Other	6.4		36.1		(29.7)			85.8		(49.7)
Total Revenue	$	7,959.9	$	6,490.6	$	1,469.3	22.6	$	6,671.4	$	(180.8)	(2.7)
Segment income	$	595.8	$	355.2	$	240.6	67.7	$	257.6	$	97.6	37.9
Retail new vehicle unit sales	76,211		80,687		(4,476)		(5.5)	88,404		(7,717)		(8.7)
Retail used vehicle unit sales	105,031		83,406		21,625		25.9	87,344		(3,938)		(4.5)

2021 compared to 2020

Domestic revenue increased during 2021, as compared to 2020, primarily due to increases in new and used vehicle revenue PVR and used vehicle unit volume, partially offset by a decrease in new vehicle unit volume resulting from historically low new vehicle inventory levels due to manufacturer supply shortages. New and used vehicle revenue PVR and used vehicle unit volume benefited from an increase in customer demand and reduced availability of new vehicle inventory. New and used vehicle unit volume in the prior year was significantly adversely impacted by the COVID-19 pandemic, particularly during the last two weeks of March 2020 through April 2020.

Domestic segment income increased during 2021, as compared to 2020, primarily due to increases in new and used vehicle gross profit, which both benefited from increased demand and reduced availability of new vehicle inventory, and an increase in finance and insurance gross profit, which benefited from an increase in finance and insurance gross profit PVR and higher used vehicle unit volume. Increases to Domestic segment income were partially offset by an increase in performance-driven SG&A expenses.

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Import

The Import segment operating results included the following:

	Years Ended December 31,
					2021 vs. 2020					2020 vs. 2019
($ in millions)	2021		2020		Variance Favorable / (Unfavorable)		% Variance	2019		Variance Favorable / (Unfavorable)		% Variance
Revenue:
New vehicle	$	3,969.8	$	3,283.7	$	686.1	20.9	$	3,695.6	$	(411.9)	(11.1)
Used vehicle	2,370.5		1,516.5		854.0		56.3	1,501.9		14.6		1.0
Parts and service	950.0		811.3		138.7		17.1	889.7		(78.4)		(8.8)
Finance and insurance, net	489.6		361.7		127.9		35.4	368.3		(6.6)		(1.8)
Other	18.6		14.8		3.8			13.2		1.6
Total Revenue	$	7,798.5	$	5,988.0	$	1,810.5	30.2	$	6,468.7	$	(480.7)	(7.4)
Segment income	$	714.7	$	386.4	$	328.3	85.0	$	318.6	$	67.8	21.3
Retail new vehicle unit sales	118,863		109,077		9,786		9.0	128,183		(19,106)		(14.9)
Retail used vehicle unit sales	103,418		82,841		20,577		24.8	86,679		(3,838)		(4.4)

2021 compared to 2020

Import revenue increased during 2021, as compared to 2020, primarily due to increases in new and used vehicle revenue PVR and new and used vehicle unit volume. Vehicle revenue PVR benefited from an increase in customer demand and historically low new vehicle inventory levels due to manufacturer supply shortages. Unit volume also benefited from the increase in customer demand, partially offset by the reduced availability of new vehicle inventory. Additionally, unit volume in the prior year was significantly adversely impacted by the COVID-19 pandemic, particularly during the last two weeks of March 2020 through April 2020.

Import segment income increased during 2021, as compared to 2020, primarily due to increases in new and used vehicle gross profit, which both benefited from increased demand and reduced availability of new vehicle inventory, and an increase in finance and insurance gross profit, which benefited from an increase in finance and insurance gross profit PVR and higher unit volume. Increases to Import segment income were partially offset by an increase in performance-driven SG&A expenses.

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Premium Luxury

The Premium Luxury segment operating results included the following:

	Years Ended December 31,
					2021 vs. 2020					2020 vs. 2019
($ in millions)	2021		2020		Variance Favorable / (Unfavorable)		% Variance	2019		Variance Favorable / (Unfavorable)		%  Variance
Revenue:
New vehicle	$	4,510.1	$	3,723.8	$	786.3	21.1	$	3,968.4	$	(244.6)	(6.2)
Used vehicle	3,067.4		2,125.9		941.5		44.3	2,045.6		80.3		3.9
Parts and service	1,246.7		1,058.1		188.6		17.8	1,136.0		(77.9)		(6.9)
Finance and insurance, net	401.0		294.7		106.3		36.1	279.2		15.5		5.6
Other	4.7		0.3		4.4			5.6		(5.3)
Total Revenue	$	9,229.9	$	7,202.8	$	2,027.1	28.1	$	7,434.8	$	(232.0)	(3.1)
Segment income	$	837.4	$	478.2	$	359.2	75.1	$	381.1	$	97.1	25.5
Retail new vehicle unit sales	67,329		59,890		7,439		12.4	66,015		(6,125)		(9.3)
Retail used vehicle unit sales	83,447		66,611		16,836		25.3	64,768		1,843		2.8

2021 compared to 2020

Premium Luxury revenue increased during 2021, as compared to 2020, primarily due to increases in new and used vehicle unit volume and new and used vehicle revenue PVR. Unit volume benefited from an increase in customer demand, partially offset by historically low new vehicle inventory levels due to manufacturer supply shortages. Additionally, unit volume in the prior year was significantly adversely impacted by the COVID-19 pandemic, particularly during the last two weeks of March 2020 through April 2020. Vehicle revenue PVR benefited from the increase in customer demand and the reduced availability of new vehicle inventory.

Premium Luxury segment income increased during 2021, as compared to 2020, primarily due to increases in new and used vehicle gross profit, which both benefited from increased demand and reduced availability of new vehicle inventory, and an increase in finance and insurance gross profit, which benefited from higher unit volume and an increase in finance and insurance gross profit PVR. Premium Luxury segment income also benefited from an increase in parts and service gross profit associated with customer-pay service and the preparation of vehicles for sale. Increases to Premium Luxury segment income were partially offset by an increase in performance-driven SG&A expenses.

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Corporate and other

Corporate and other results included the following:

	Years Ended December 31,
					2021 vs. 2020					2020 vs. 2019
($ in millions)	2021		2020		Variance Favorable / (Unfavorable)		% Variance	2019		Variance Favorable / (Unfavorable)		% Variance
Revenue:
Used vehicle	$	325.9	$	177.5	$	148.4	83.6	$	149.5	$	28.0	18.7
Parts and service	502.3		496.5		5.8		1.2	587.4		(90.9)		(15.5)
Finance and insurance, net	24.8		32.4		(7.6)		(23.5)	21.2		11.2		52.8
Other	2.7		2.2		0.5		22.7	2.7		(0.5)		(18.5)
Revenue	$	855.7	$	708.6	$	147.1	20.8	$	760.8	$	(52.2)	(6.9)
Income (loss)	$	(270.8)	$	(720.4)	$	449.6		$	(272.1)	$	(448.3)

“Corporate and other” is comprised of our other businesses, including collision centers, auction operations, AutoNation USA used vehicle stores, and parts distribution centers, all of which generate revenues but do not meet the quantitative thresholds for reportable segments, as well as unallocated corporate overhead expenses and other income items.

As of December 31, 2021, we had 57 AutoNation-branded collision centers, 9 AutoNation USA stores, 4 AutoNation-branded automotive auction operations, and 3 parts distribution centers that service our wholesale parts sales markets for the sale of original equipment manufacturer parts. We plan to expand our AutoNation USA used vehicle stores and are targeting to have over 130 stores by the end of 2026. We are planning 17 new store openings over 2021 and 2022. The planned expansion may be impacted by a number of variables, including customer adoption, market conditions, availability of used vehicle inventory, and our ability to identify, acquire, and build out suitable locations in a timely manner.

In the third quarter of 2020, we determined to close our aftermarket collision parts (“ACP”) business by the end of 2020. In connection with the closing of the ACP business, we incurred total pre-tax charges of $36.7 million in 2020. The charges are comprised of inventory valuation adjustments, contract termination charges, accelerated depreciation and amortization, asset impairment charges, involuntary termination benefits, and other associated closing costs. See Note 17 of the Notes to Consolidated Financial Statements for additional information.

During 2020, we recorded non-cash goodwill impairment charges totaling $318.3 million, of which $257.4 million related to our Premium Luxury reporting unit, $41.6 million related to our Collision Centers reporting unit, and $19.3 million related to our Parts Centers reporting unit. We also recorded non-cash franchise rights impairment charges of $57.5 million. The non-cash goodwill impairments and franchise rights impairments are reflected as Goodwill Impairment and Franchise Rights Impairment, respectively, in the accompanying Consolidated Statements of Income. During 2020, we recorded non-cash long-lived asset impairment charges associated with our ACP business of $11.0 million, of which $5.1 million is included in the ACP closing charges described above, and non-cash intangible asset impairment charges associated with our collision centers and ACP business of $2.4 million.

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Selling, General, and Administrative Expenses

Our SG&A expenses consist primarily of compensation, including store and corporate salaries, commissions, and incentive-based compensation, as well as advertising (net of reimbursement-based manufacturer advertising rebates), and store and corporate overhead expenses, which include occupancy costs, legal, accounting, and professional services, and general corporate expenses. The following table presents the major components of our SG&A.

	Years Ended December 31,
					2021 vs. 2020					2020 vs. 2019
($ in millions)	2021		2020		Variance Favorable / (Unfavorable)		% Variance	2019		Variance Favorable / (Unfavorable)		%  Variance
Reported:
Compensation	$	2,017.1	$	1,573.0	$	(444.1)	(28.2)	$	1,634.6	$	61.6	3.8
Advertising	170.3		161.7		(8.6)		(5.3)	187.8		26.1		13.9
Store and corporate overhead	688.8		687.3		(1.5)		(0.2)	736.2		48.9		6.6
Total	$	2,876.2	$	2,422.0	$	(454.2)	(18.8)	$	2,558.6	$	136.6	5.3
SG&A as a % of total gross profit:
Compensation	40.7		44.1		340		bps	46.4		230		bps
Advertising	3.5		4.5		100		bps	5.3		80		bps
Store and corporate overhead	13.9		19.3		540		bps	20.9		160		bps
Total	58.1		67.9		980		bps	72.6		470		bps

2021 compared to 2020

SG&A expenses increased in 2021, as compared to 2020, primarily due to a performance-driven increase in compensation expense. Additionally, gross advertising expenses increased $11.8 million, partially offset by an increase in advertising reimbursements from manufacturers of $3.2 million. As a percentage of total gross profit, SG&A expenses decreased to 58.1% during 2021, from 67.9% in 2020, primarily due to improvements in gross profit PVR and effective cost management.

Goodwill Impairment

During the first quarter of 2020, due to the impact of the COVID-19 pandemic on our results and the decrease in our stock price and market capitalization as of March 31, 2020, we recorded non-cash goodwill impairment charges of $318.3 million. See Note 19 of the Notes to Consolidated Financial Statements for more information.

Franchise Rights Impairment

During the first quarter of 2020, we recorded non-cash franchise rights impairment charges of $57.5 million to reduce the carrying values of certain franchise rights to their estimated fair values. See Note 19 of the Notes to Consolidated Financial Statements for more information.

Other (Income) Expense, Net (Operating)

During 2021, we recognized a gain of $5.2 million related to a legal settlement and net gains of $17.6 million related to business/property divestitures, partially offset by asset impairments of $3.2 million.

During 2020, we recognized $3.2 million related to contract termination charges and $5.1 million related to long-lived asset impairment charges in connection with the closure of our ACP business, as well as other asset impairment charges of $9.6 million. These charges were partially offset by net gains of $7.8 million related to store/property divestitures and $4.7 million related to legal settlements.

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Non-Operating Income (Expenses)

Floorplan Interest Expense

Floorplan interest expense was $25.7 million in 2021 and $63.8 million in 2020. The decrease in floorplan interest expense of $38.1 million in 2021, as compared to 2020, was the result of lower average vehicle floorplan balances and lower average interest rates. Floorplan interest rates are variable and therefore increase and decrease with changes in the underlying benchmark interest rates.

Other Interest Expense

Other interest expense of $93.0 million in 2021 was relatively flat compared to $93.7 million in 2020.

Other Income, Net (included in Non-Operating Income)

During 2021 and 2020, we recognized net gains of $12.7 million and $12.3 million, respectively, related to increases in the cash surrender value of corporate-owned life insurance (“COLI”) held in a Rabbi Trust for deferred compensation plan participants as a result of changes in market performance of the underlying investments. Gains and losses related to the COLI are substantially offset by corresponding increases and decreases, respectively, in the deferred compensation obligations, which are reflected in SG&A expenses.

During 2021, we sold the remaining shares of one of our minority equity investments and recorded a realized gain of $7.5 million. Additionally, as a result of changes in the fair values of the underlying securities of our other minority equity investments, we recorded an unrealized gain of $3.4 million during 2021. During 2020, we recorded a gain of $131.5 million related to one of our minority equity investments, of which $63.4 million was realized based on the shares sold during 2020 and $68.1 million was unrealized based on changes in the fair value of the shares still held as of December 31, 2020. See Note 19 of the Notes to Consolidated Financial Statements for more information.

Income Tax Provision

Income taxes are provided based upon our anticipated underlying annual blended federal and state income tax rates, adjusted, as necessary, for any discrete tax matters occurring during the period. As we operate in various states, our effective tax rate is also dependent upon our geographic revenue mix.

Our effective income tax rate was 24.1% in 2021 and 30.6% in 2020. The tax rate for 2020 reflects the fact that a significant portion of the goodwill impairment charges taken in the first quarter of 2020 was not deductible for income tax purposes. See Note 12 of the Notes to Consolidated Financial Statements for more information.

Discontinued Operations

Discontinued operations are related to stores that were sold or terminated prior to January 1, 2014. Results from discontinued operations, net of income taxes, were primarily related to carrying costs for real estate we have not yet sold associated with stores that were closed prior to January 1, 2014, and other adjustments related to disposed operations.

Liquidity and Capital Resources

We manage our liquidity to ensure access to sufficient funding at acceptable costs to fund our ongoing operating requirements and future capital expenditures while continuing to meet our financial obligations. We believe that our cash and cash equivalents, funds generated through operations, and amounts available under our revolving credit facility, commercial paper program, and secured used vehicle floorplan facilities will be sufficient to fund our working capital requirements, service our debt, pay our tax obligations and commitments and contingencies, and meet any seasonal operating requirements for the foreseeable future.

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Available Liquidity Resources

We had the following sources of liquidity available for the years ended December 31, 2021 and 2020:

(In millions)	December 31, 2021			December 31, 2020
Cash and cash equivalents	$	60.4		$	569.6
Revolving credit facility	$	1,760.3	(1)	$	1,760.3
Secured used vehicle floorplan facilities(2)	$	0.1		$	0.3

(1)    At December 31, 2021, we had $39.7 million of letters of credit outstanding. In addition, we use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. We had $340.0 million commercial paper notes outstanding at December 31, 2021. See Note 9 of the Notes to Consolidated Financial Statements for additional information.

(2)    Based on the eligible used vehicle inventory that could have been pledged as collateral. See Note 5 of the Notes to Consolidated Financial Statements for additional information.

In January 2021, we repaid the outstanding $300.0 million of 3.35% Senior Notes through utilization of available funds.

In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance relating to insurance matters. At December 31, 2021, surety bonds, letters of credit, and cash deposits totaled $104.8 million, including the $39.7 million of letters of credit issued under our revolving credit facility. We do not currently provide cash collateral for outstanding letters of credit.

Capital Allocation

Our capital allocation strategy is focused on growing long-term value per share. We invest capital in our business to maintain and upgrade our existing facilities and to build new facilities for existing franchises and new AutoNation USA used vehicle stores, as well as for other strategic and technology initiatives. We also deploy capital opportunistically to complete acquisitions or investments, build facilities for newly awarded franchises, and/or repurchase our common stock and/or debt. Our capital allocation decisions will be based on factors such as the expected rate of return on our investment, the market price of our common stock versus our view of its intrinsic value, the market price of our debt, the potential impact on our capital structure, our ability to complete acquisitions that meet our market and vehicle brand criteria and return on investment threshold, and limitations set forth in our debt agreements.

Share Repurchases

Our Board of Directors from time to time authorizes the repurchase of shares of our common stock up to a certain monetary limit. A summary of shares repurchased under our share repurchase program authorized by our Board of Directors follows:

(In millions, except per share data)	2021		2020		2019
Shares repurchased	22.3		7.2		1.3
Aggregate purchase price	$	2,303.2	$	382.3	$	44.7
Average purchase price per share	$	103.18	$	52.76	$	35.51

The decision to repurchase shares at any given point in time is based on such factors as the market price of our common stock versus our view of its intrinsic value, the potential impact on our capital structure (including compliance with our maximum leverage ratio and other financial covenants in our debt agreements as well as our available liquidity), and the expected return on competing uses of capital such as acquisitions or investments, capital investments in our current businesses, or repurchases of our debt.

As of February 15, 2022 and December 31, 2021, $776.3 million and $894.6 million, respectively, remained available under our stock repurchase limit most recently authorized by our Board of Directors.

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Capital Expenditures

The following table sets forth information regarding our capital expenditures over the past three years:

(In millions)	2021		2020		2019
Purchases of property and equipment, including operating lease buy-outs (1)	$	231.9	$	137.2	$	257.4
(1) Includes accrued construction in progress and excludes property associated with leases entered into during the year.

At December 31, 2021, we owned approximately 80% of our new vehicle franchise store locations with a net book value of $2.3 billion, as well as other properties associated with our collision centers, AutoNation USA used vehicle stores, parts distribution centers, auction operations, and other excess properties with a net book value of $587.9 million. None of these properties are mortgaged or encumbered.

Acquisitions and Divestitures

The following table sets forth information regarding cash used in business acquisitions, net of cash acquired, and cash received from business divestitures, net of cash relinquished, over the past three years:

(In millions)	2021		2020		2019
Cash used in business acquisitions, net(1)	$	(432.7)	$	(0.4)	$	(4.7)
Cash received from business divestitures, net	$	48.7	$	9.0	$	115.6
(1) Excludes finance leases.

During 2021, we purchased 20 stores and 4 collision centers. We did not purchase any stores during 2020.

During 2021, we divested 3 stores and 18 collision centers. During 2020, we divested 1 store and 2 collision centers, and terminated 1 franchise.

We plan to expand our AutoNation USA used vehicle stores and are targeting to have over 130 stores by the end of 2026. We are planning 17 new store openings over 2021 and 2022. We anticipate that the initial capital investment for each new store will be approximately $10 million to $12 million on average. The planned expansion may be impacted by a number of variables, including customer adoption, market conditions, availability of used vehicle inventory, and our ability to identify, acquire, and build out suitable locations in a timely manner.

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Long-Term Debt

The following table sets forth our non-vehicle long-term debt as of December 31, 2021 and 2020:

			(in millions)
Debt Description	Maturity Date	Interest Payable	2021		2020
3.35% Senior Notes	January 15, 2021	January 15 and July 15	$	—	$	300.0
3.5% Senior Notes	November 15, 2024	May 15 and November 15	450.0		450.0
4.5% Senior Notes	October 1, 2025	April 1 and October 1	450.0		450.0
3.8% Senior Notes	November 15, 2027	May 15 and November 15	300.0		300.0
1.95% Senior Notes	August 1, 2028	February 1 and August 1	400.0		—
4.75% Senior Notes	June 1, 2030	June 1 and December 1	500.0		500.0
2.4% Senior Notes	August 1, 2031	February 1 and August 1	450.0		—
Revolving credit facility	March 26, 2025	Monthly	—		—
Finance leases and other debt	Various dates through 2041		330.6		116.6
			2,880.6		2,116.6
Less: unamortized debt discounts and debt issuance costs			(22.2)		(14.8)
Less: current maturities			(12.2)		(309.2)
Long-term debt, net of current maturities			$	2,846.2	$	1,792.6

On July 29, 2021, we issued $400.0 million aggregate principal amount of 1.95% Senior Notes due 2028 and $450.0 million aggregate principal amount of 2.4% Senior Notes due 2031, which were sold at 99.805% and 99.735% of the aggregate principal amount, respectively. In January 2021, we repaid the outstanding $300.0 million of 3.35% Senior Notes due 2021.

We had $340.0 million commercial paper notes outstanding at December 31, 2021. We had no commercial paper notes outstanding at December 31, 2020.

A downgrade in our credit ratings could negatively impact the interest rate payable on our 3.5% Senior Notes, 4.5% Senior Notes, 3.8% Senior Notes, and 4.75% Senior Notes and could negatively impact our ability to issue, or the interest rates for, commercial paper notes. Additionally, an increase in our leverage ratio could negatively impact the interest rates charged for borrowings under our revolving credit facility.

See Note 9 of the Notes to Consolidated Financial Statements for more information on our long-term debt and commercial paper.

Restrictions and Covenants

Our credit agreement, the indentures for our senior unsecured notes, and our vehicle floorplan facilities contain numerous customary financial and operating covenants that place significant restrictions on us, including our ability to incur additional indebtedness or prepay existing indebtedness, to create liens or other encumbrances, to sell (or otherwise dispose of) assets, and to merge or consolidate with other entities.

Under our credit agreement, we are required to remain in compliance with a maximum leverage ratio and maximum capitalization ratio. The leverage ratio is a contractually defined amount principally reflecting non-vehicle debt divided by a contractually defined measure of earnings with certain adjustments. The capitalization ratio is a contractually defined amount principally reflecting vehicle floorplan payable and non-vehicle debt divided by our total capitalization including vehicle floorplan payable. The specific terms of these covenants can be found in our credit agreement, which we filed with our Current Report on Form 8-K on March 26, 2020.

The indentures for our senior unsecured notes contain certain limited covenants, including limitations on liens and sale and leaseback transactions.

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Our failure to comply with the covenants contained in our debt agreements could result in the acceleration of all of our indebtedness. Our debt agreements have cross-default provisions that trigger a default in the event of an uncured default under other material indebtedness of AutoNation.

As of December 31, 2021, we were in compliance with the requirements of the financial covenants under our debt agreements. Under the terms of our credit agreement, at December 31, 2021, our leverage ratio and capitalization ratio were as follows:

	December 31, 2021
	Requirement	Actual
Leverage ratio	≤ 3.75x	1.48x
Capitalization ratio	≤ 70.0%	52.7%

Vehicle Floorplan Payable

The components of vehicle floorplan payable are as follows:

(In millions)	2021		2020
Vehicle floorplan payable - trade	$	489.9	$	1,541.7
Vehicle floorplan payable - non-trade	967.7		1,218.2
Vehicle floorplan payable	$	1,457.6	$	2,759.9

Vehicle floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related vehicles are sold. Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related receivables.

Our vehicle floorplan facilities currently primarily utilize LIBOR-based interest rates. In connection with global reference rate reform initiatives, particularly related to LIBOR, in October 2021, we began modifying our floorplan agreements to replace the reference rate from LIBOR to an alternative reference rate. The floorplan agreement modifications will be accounted for by prospectively adjusting the effective interest rate in accordance with accounting standards. We do not expect the change from LIBOR to an alternative reference rate to have a material impact on our annual floorplan interest expense. See Note 5 of the Notes to Consolidated Financial Statements for more information on our vehicle floorplan payable.

Cash Flows

The following table summarizes the changes in our cash provided by (used in) operating, investing, and financing activities:

	Years Ended December 31,
(In millions)	2021		2020		2019
Net cash provided by operating activities	$	1,627.7	$	1,207.6	$	769.2
Net cash used in investing activities	$	(460.3)	$	(73.7)	$	(115.8)
Net cash used in financing activities	$	(1,676.5)	$	(606.7)	$	(660.3)

Cash Flows from Operating Activities

Our primary sources of operating cash flows result from the sale of vehicles and finance and insurance products, collections from customers for the sale of parts and services, and proceeds from vehicle floorplan payable-trade. Our primary uses of cash from operating activities are repayments of vehicle floorplan payable-trade, purchases of inventory, personnel-related expenditures, and payments related to taxes and leased properties.

2021 compared to 2020

Net cash provided by operating activities increased during 2021, as compared to 2020, primarily due to an increase in earnings, partially offset by an increase in working capital requirements.

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Cash Flows from Investing Activities

Net cash flows from investing activities consist primarily of cash used in capital additions and activity from business acquisitions, business divestitures, property dispositions, and other transactions.

We will make facility and infrastructure upgrades and improvements from time to time as we identify projects that are required to maintain our current business or that we expect to provide us with acceptable rates of return.

2021 compared to 2020

Net cash used in investing activities increased during 2021, as compared to 2020, primarily due to an increase in cash used in business acquisitions and an increase in purchases of property and equipment, partially offset by a decrease in investments made in equity securities, an increase in cash received from divestitures, and an increase in proceeds from assets held for sale.

Cash Flows from Financing Activities

Net cash flows from financing activities primarily include repurchases of common stock, debt activity, changes in vehicle floorplan payable-non-trade, and proceeds from stock option exercises.

2021 compared to 2020

During 2021, we repurchased 22.3 million shares of common stock for an aggregate purchase price of $2.3 billion (average purchase price per share of $103.18). During 2020, we repurchased 7.2 million shares of our common stock for an aggregate purchase price of $382.3 million (average purchase price per share of $52.76), including repurchases for which settlement occurred subsequent to December 31, 2020.

During 2021, we had no borrowings or repayments under our revolving credit facility. During 2020, we borrowed $1.1 billion and repaid $1.1 billion under our revolving credit facility.

During 2021, we repaid the outstanding $300.0 million of 3.35% Senior Notes due 2021 and issued $400.0 million aggregate principal amount of 1.95% Senior Notes due 2028 and $450.0 million aggregate principal amount of 2.4% Senior Notes due 2031. Cash flows from financing activities during 2021, reflect cash payments of $8.0 million for debt issuance costs associated with the senior note issuances that are being amortized to interest expense over the terms of the related senior notes.

During 2020, we repaid the outstanding $350.0 million of 5.5% Senior Notes due 2020, issued $500.0 million aggregate principal amount of 4.75% Senior Notes due 2030, and amended and restated our existing unsecured credit agreement. Cash flows from financing activities during 2020 reflect cash payments of $11.0 million for debt issuance costs associated with the senior note issuance and debt refinancing that are being amortized to interest expense over the terms of the related debt arrangements.

Cash flows from financing activities include changes in commercial paper notes outstanding totaling net proceeds of $340.0 million during 2021 compared to net repayments of $170.0 million during 2020.

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Material Cash Requirements

The following table summarizes our current and long-term material cash requirements as of December 31, 2021. The amounts presented are based upon, among other things, the terms of any relevant agreements. Future events that may occur related to the following payment obligations could cause actual payments to differ significantly from these amounts.

	Payments Due by Period
(In millions)	Total		Less Than 1 Year (2022)		1 - 3 Years (2023 and 2024)		3 - 5 Years (2025 and 2026)		More Than 5 Years (2027 and thereafter)
Vehicle floorplan payable (Note 5)(1)	$	1,457.6	$	1,457.6	$	—	$	—	$	—
Long-term debt, including finance leases (Note 9)(1)(2)	2,880.6		12.2		474.2		477.3		1,916.9
Commercial paper (Note 9)(1)	340.0		340.0		—		—		—
Interest payments(3)	683.4		102.1		202.7		148.8		229.8
Operating lease and other commitments (Note 8)(1)(4)	406.4		51.7		81.5		66.9		206.3
Unrecognized tax benefits, net (Note 12)(1)	12.4		—		4.3		8.1		—
Deferred compensation obligations(5)	117.2		5.3		—		—		111.9
Estimated chargeback liability (Note 10)(1)(6)	171.0		91.6		67.8		11.3		0.3
Estimated self-insurance obligations (Note 11)(1)(7)	95.8		44.6		29.2		12.1		9.9
Purchase obligations and other commitments(8)	234.5		159.2		44.2		22.6		8.5
Total	$	6,398.9	$	2,264.3	$	903.9	$	747.1	$	2,483.6

(1)See Notes to Consolidated Financial Statements.

(2)Amounts for long-term debt obligations reflect principal payments and are not reduced for unamortized debt discounts of $5.2 million or debt issuance costs of $17.0 million.

(3)Primarily represents scheduled fixed interest payments on our outstanding senior unsecured notes and finance leases. Estimates of future interest payments for vehicle floorplan payables and commercial paper are excluded due to the short-term nature of these facilities.

(4)Amounts for operating lease commitments do not include certain operating expenses such as maintenance, insurance, and real estate taxes. In 2021, these charges totaled approximately $23 million. Additionally, operating leases that are on a month-to-month basis are not included.

(5)Due to uncertainty regarding timing of payments expected beyond one year, long-term obligations for deferred compensation arrangements have been classified in the “More Than 5 Years” column.

(6)Our estimated chargeback obligations do not have scheduled maturities, however, the timing of future payments is estimated based on historical patterns.

(7)Our estimated self-insurance obligations are based on management estimates and actuarial calculations. Although these obligations do not have scheduled maturities, the timing of future payments is estimated based on historical patterns.

(8)Primarily represents purchase orders and contracts in connection with real estate construction projects and information technology and communication systems.

We expect that the amounts above will be funded through cash flows from operations or borrowings under our commercial paper program or credit agreement. In the case of payments due upon the maturity of our debt instruments, we currently expect to be able to refinance such instruments in the normal course of business.

In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance. At December 31, 2021, surety bonds, letters of credit, and cash deposits totaled $104.8 million, of which $39.7 million were letters of credit. We do not currently provide cash collateral for outstanding letters of credit. We have negotiated a letter of credit sublimit as part of our revolving credit facility. The

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amount available to be borrowed under this revolving credit facility is reduced on a dollar-for-dollar basis by the cumulative amount of any outstanding letters of credit.

As further discussed in Note 12 of the Notes to Consolidated Financial Statements, there are various tax matters where the ultimate resolution may result in us owing additional tax payments.

Off-Balance Sheet Arrangements

As of December 31, 2021, we did not have any significant off-balance sheet arrangements, as defined in Item 303(a)(4)(ii) of SEC Regulation S-K.

Forward-Looking Statements

Our business, financial condition, results of operations, cash flows, and prospects, and the prevailing market price and performance of our common stock may be adversely affected by a number of factors, including the matters discussed below. Certain statements and information set forth in this Annual Report on Form 10-K, including, without limitation, statements regarding the impact of the COVID-19 pandemic on our business, results of operations, and financial condition, the actions we are taking in response to the COVID-19 pandemic, our strategic initiatives, partnerships, or investments, including the planned expansion of our AutoNation USA used vehicle stores, our investments in digital and online capabilities, and other strategic initiatives, and other statements regarding our expectations for the future performance of our business and the automotive retail industry, as well as other written or oral statements made from time to time by us or by our authorized executive officers on our behalf, constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical fact, including statements that describe our objectives, plans, or goals are, or may be deemed to be, forward-looking statements. Words such as “anticipate,” “expect,” “intend,” “goal,” “plan,” “believe,” “continue,” “may,” “will,” “could,” and variations of such words and similar expressions are intended to identify such forward-looking statements. Our forward-looking statements reflect our current expectations concerning future results and events, and they involve known and unknown risks, uncertainties, and other factors that are difficult to predict and may cause our actual results, performance, or achievements to be materially different from any future results, performance, or achievements expressed or implied by these statements. These forward-looking statements speak only as of the date of this report, and we undertake no obligation to revise or update these statements to reflect subsequent events or circumstances. The risks, uncertainties, and other factors that our stockholders and prospective investors should consider include, but are not limited to, the following:

•The automotive retail industry is sensitive to changing economic conditions and various other factors, including, but not limited to, unemployment levels, consumer confidence, fuel prices, interest rates, and tariffs. Our business and results of operations are substantially dependent on new and used vehicle sales levels in the United States and in our particular geographic markets, as well as the gross profit margins that we can achieve on our sales of vehicles, all of which are very difficult to predict.

•The COVID-19 pandemic has disrupted, and may continue to disrupt, our business, results of operations, and financial condition going forward. Future epidemics, pandemics, and other outbreaks could also disrupt our business, results of operations, and financial condition.

•Our new vehicle sales are impacted by the incentive, marketing, and other programs of vehicle manufacturers.

•We are dependent upon the success and continued financial viability of the vehicle manufacturers and distributors with which we hold franchises.

•We are subject to restrictions imposed by, and significant influence from, vehicle manufacturers that may adversely impact our business, financial condition, results of operations, cash flows, and prospects, including our ability to acquire additional stores.

•We are investing significantly in various strategic initiatives, and if they are not successful, we will have incurred significant expenses without the benefit of improved financial results.

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•If we are not able to maintain and enhance our retail brands and reputation or to attract consumers to our own digital channels, or if events occur that damage our retail brands, reputation, or sales channels, our business and financial results may be harmed.

•The carrying value of our minority equity investment that does not have a readily determinable fair value is required to be adjusted for observable price changes or impairments, both of which could adversely impact our results of operations and financial condition.

•New laws, regulations, or governmental policies in response to climate change, including fuel economy and greenhouse gas emission standards, or changes to existing standards, could adversely impact our business, results of operations, financial condition, cash flow, and prospects.

•We are subject to numerous legal and administrative proceedings, which, if the outcomes are adverse to us, could materially adversely affect our business, results of operations, financial condition, cash flows, and prospects.

•Our operations are subject to extensive governmental laws and regulations. If we are found to be in purported violation of or subject to liabilities under any of these laws or regulations, or if new laws or regulations are enacted that adversely affect our operations, our business, operating results, and prospects could suffer.

•A failure of our information systems or any security breach or unauthorized disclosure of confidential information could have a material adverse effect on our business.

•Our debt agreements contain certain financial ratios and other restrictions on our ability to conduct our business, and our substantial indebtedness could adversely affect our financial condition and operations and prevent us from fulfilling our debt service obligations.

•We are subject to interest rate risk in connection with our vehicle floorplan payables, revolving credit facility, and commercial paper program that could have a material adverse effect on our profitability.

•Goodwill and other intangible assets comprise a significant portion of our total assets. We must test our goodwill and other intangible assets for impairment at least annually, which could result in a material, non-cash write-down of goodwill or franchise rights and could have a material adverse impact on our results of operations and shareholders’ equity.

•Our largest stockholders, as a result of their ownership stakes in us, may have the ability to exert substantial influence over actions to be taken or approved by our stockholders. In addition, future share repurchases and fluctuations in the levels of ownership of our largest stockholders could impact the volume of trading, liquidity, and market price of our common stock.

•Natural disasters and adverse weather events, including the effects of climate change, can disrupt our business.

Additional Information

Investors and others should note that we announce material financial information using our company website (www.autonation.com), our investor relations website (investors.autonation.com), SEC filings, press releases, public conference calls, and webcasts. Information about AutoNation, its business, and its results of operations may also be announced by posts on the following social media channels:

•AutoNation’s Twitter feed (www.twitter.com/autonation)

•Mike Manley’s Twitter feed (www.twitter.com/CEOMikeManley)

The information that we post on these social media channels could be deemed to be material information. As a result, we encourage investors, the media, and others interested in AutoNation to review the information that we post on these social media channels. These channels may be updated from time to time on AutoNation’s investor relations website. The information on or accessible through our websites and social media channels is not incorporated by reference in this Annual Report on Form 10-K.

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ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Interest Rate Risk

We have market risk exposure on various instruments that are based on variable interest rates. Interest rate derivatives may be used to hedge a portion of our variable rate debt, when appropriate, based on market conditions.

We had $1.5 billion of variable rate vehicle floorplan payable at December 31, 2021, and $2.8 billion at December 31, 2020. Based on these amounts, a 100 basis point change in interest rates would result in an approximate change of $14.6 million in 2021 and $27.6 million in 2020 to our annual floorplan interest expense. Our exposure to changes in interest rates with respect to total vehicle floorplan payable is partially mitigated by manufacturers’ floorplan assistance, which in some cases is based on variable interest rates.

We had $340.0 million of commercial paper notes outstanding at December 31, 2021. Based on the amount outstanding, a 100 basis point change in interest rates would result in an approximate change to our annual interest expense of $3.4 million in 2021. We had no commercial paper notes outstanding at December 31, 2020.

Our fixed rate long-term debt, consisting of amounts outstanding under senior unsecured notes and finance lease and other debt obligations, totaled $2.9 billion and had a fair value of $3.0 billion as of December 31, 2021, and totaled $2.1 billion and had a fair value of $2.3 billion as of December 31, 2020.

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ITEM 8.  FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

INDEX TO CONSOLIDATED FINANCIAL STATEMENTS

	Page
Reports of Independent Registered Public Accounting Firm  (KPMG LLP, Fort Lauderdale, FL, Auditor Firm ID: 185)	56
Consolidated Balance Sheets as of December 31, 2021 and 2020	60
Consolidated Statements of Income for the Years Ended December 31, 2021, 2020, and 2019	61
Consolidated Statements of Shareholders’ Equity for the Years Ended December 31, 2021, 2020, and 2019	62
Consolidated Statements of Cash Flows for the Years Ended December 31, 2021, 2020, and 2019	63
Notes to Consolidated Financial Statements	65

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Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

AutoNation, Inc.:

Opinion on the Consolidated Financial Statements

We have audited the accompanying consolidated balance sheets of AutoNation, Inc. and subsidiaries (the Company) as of December 31, 2021 and 2020, the related consolidated statements of income, shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2021, and the related notes (collectively, the consolidated financial statements). In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of the Company as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2021, in conformity with U.S. generally accepted accounting principles.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the Company’s internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission, and our report dated February 17, 2022 expressed an unqualified opinion on the effectiveness of the Company’s internal control over financial reporting.

Basis for Opinion

These consolidated financial statements are the responsibility of the Company’s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to error or fraud. Our audits included performing procedures to assess the risks of material misstatement of the consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements. We believe that our audits provide a reasonable basis for our opinion.

Critical Audit Matter

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that: (1) relates to accounts or disclosures that are material to the consolidated financial statements and (2) involved our especially challenging, subjective, or complex judgments. The communication of a critical audit matter does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

Fair value of franchise rights

As described in Notes 7 to the consolidated financial statements, the franchise rights balance as of December 31, 2021 was $727.5 million. The Company performs franchise rights impairment testing annually or more frequently when events or changes indicate that impairment may have occurred. During the fiscal year ended December 31, 2021, the Company performed a quantitative impairment analysis of its franchise rights. As described in Note 15 to the consolidated financial statements, the Company completed its acquisitions for an aggregate purchase price of $432.7 million during the fiscal year ended December 31, 2021. As a result of the acquisitions, management was required to estimate fair values of the assets acquired and liabilities assumed, including franchise rights, which were identifiable intangible assets.

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We identified the assessment of the fair values of franchise rights for (1) stores included in the annual impairment test, and (2) certain stores acquired during the fiscal year ended December 31, 2021 as a critical audit matter. We performed sensitivity analyses as a risk assessment procedure over assumptions used to estimate the fair value of the franchise rights and determined the forecasted revenue growth rates, the forecasted margin rates and the discount rates represented the significant assumptions. A higher degree of auditor judgment was required to evaluate the Company’s estimated forecasted revenue growth rates and margin rates used to determine the fair value of franchise rights. Valuation professionals with specialized skills and knowledge were required to evaluate the determination of the discount rates.

The following are the primary procedures we performed to address this critical audit matter. We evaluated the design and tested the operating effectiveness of certain internal controls related to the process to determine the fair value of the franchise rights, including controls over the:

•development of the forecasted revenue growth rates and the forecasted margin rates

•selection of the discount rate assumptions.

We evaluated the Company’s forecasted revenue growth rates by comparing the growth assumptions to market data, such as industry forecasted growth rates and historical actual growth for similar store brands in the market. We evaluated the Company’s forecasted margin rates by comparing them to historical margins for similar brand stores in the market. We compared the Company’s historical revenue growth and margin forecasts to actual results to assess the Company’s ability to accurately forecast. In addition, we involved valuation professionals with specialized skills and knowledge, who assisted in evaluating the discount rates used by management in the valuations by comparing them against independently developed discount rates using publicly available market data for comparable entities.

/s/ KPMG LLP

We have served as the Company’s auditor since 2003.

Fort Lauderdale, Florida

February 17, 2022

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Report of Independent Registered Public Accounting Firm

To the Shareholders and Board of Directors

AutoNation, Inc.:

Opinion on Internal Control Over Financial Reporting

We have audited AutoNation, Inc. and subsidiaries' (the Company) internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. In our opinion, the Company maintained, in all material respects, effective internal control over financial reporting as of December 31, 2021, based on criteria established in Internal Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission.

We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States) (PCAOB), the consolidated balance sheets of the Company as of December 31, 2021and 2020, the related consolidated statements of income, shareholders’ equity, and cash flows for each of the years in the three-year period ended December 31, 2021, and the related notes (collectively, the consolidated financial statements), and our report dated February 17, 2022 expressed an unqualified opinion on those consolidated financial statements.

The Company acquired stores and collision centers during the third and fourth quarters of 2021, which management excluded from its assessment of the effectiveness of the Company’s internal control over financial reporting as of December 31, 2021. Those stores and collision centers represented less than 6.7% of total assets and less than 0.7% of total revenue in the consolidated financial statements of the Company as of and for the year ended December 31, 2021. Our audit of internal control over financial reporting of the Company also excluded an evaluation of the internal control over financial reporting of those stores and collision centers.

Basis for Opinion

The Company’s management is responsible for maintaining effective internal control over financial reporting and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management's Annual Report on Internal Control Over Financial Reporting. Our responsibility is to express an opinion on the Company’s internal control over financial reporting based on our audit. We are a public accounting firm registered with the PCAOB and are required to be independent with respect to the Company in accordance with the U.S. federal securities laws and the applicable rules and regulations of the Securities and Exchange Commission and the PCAOB.

We conducted our audit in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether effective internal control over financial reporting was maintained in all material respects. Our audit of internal control over financial reporting included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audit also included performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion.

Definition and Limitations of Internal Control Over Financial Reporting

A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles. A company’s internal control over financial reporting includes those policies and procedures that (1) pertain to the maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the company; (2) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in accordance with authorizations of management and directors of the company; and (3) provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect on the financial statements.

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Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that the degree of compliance with the policies or procedures may deteriorate.

/s/ KPMG LLP

Fort Lauderdale, Florida

February 17, 2022

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AUTONATION, INC.

CONSOLIDATED BALANCE SHEETS

As of December 31,

(In millions, except share and per share data)

	2021		2020
ASSETS
CURRENT ASSETS:
Cash and cash equivalents	$	60.4	$	569.6
Receivables, net	730.0		845.2
Inventory	1,847.9		2,598.5
Other current assets	173.4		139.4
Total Current Assets	2,811.7		4,152.7
PROPERTY AND EQUIPMENT, NET	3,419.5		3,138.1
OPERATING LEASE ASSETS	284.0		309.5
GOODWILL	1,235.3		1,185.0
OTHER INTANGIBLE ASSETS, NET	743.5		521.5
OTHER ASSETS	449.6		580.4
Total Assets	$	8,943.6	$	9,887.2
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES:
Vehicle floorplan payable - trade	$	489.9	$	1,541.7
Vehicle floorplan payable - non-trade	967.7		1,218.2
Accounts payable	395.9		335.2
Commercial paper	340.0		—
Current maturities of long-term debt	12.2		309.2
Accrued payroll and benefits	279.9		225.8
Other current liabilities	574.2		535.8
Total Current Liabilities	3,059.8		4,165.9
LONG-TERM DEBT, NET OF CURRENT MATURITIES	2,846.2		1,792.6
NONCURRENT OPERATING LEASE LIABILITIES	260.1		286.5
DEFERRED INCOME TAXES	78.2		95.9
OTHER LIABILITIES	322.3		310.6
COMMITMENTS AND CONTINGENCIES (Note 20)
SHAREHOLDERS’ EQUITY:
Common stock, par value $0.01 per share; 1,500,000,000 shares authorized; 86,562,149 shares issued at December 31, 2021, and 102,562,149 shares issued at December 31, 2020, including shares held in treasury	0.8		1.0
Additional paid-in capital	3.2		53.1
Retained earnings	4,639.9		4,069.4
Treasury stock, at cost; 23,951,543 and 19,078,620 shares held, respectively	(2,266.9)		(887.8)
Total Shareholders’ Equity	2,377.0		3,235.7
Total Liabilities and Shareholders’ Equity	$	8,943.6	$	9,887.2

See accompanying Notes to Consolidated Financial Statements.

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AUTONATION, INC.

CONSOLIDATED STATEMENTS OF INCOME

For the Years Ended December 31,

(In millions, except per share data)

	2021		2020		2019
Revenue:
New vehicle	$	12,081.7	$	10,418.6	$	11,166.5
Used vehicle	8,638.8		5,601.3		5,466.5
Parts and service	3,706.6		3,257.4		3,572.1
Finance and insurance, net	1,384.5		1,059.3		1,023.3
Other	32.4		53.4		107.3
TOTAL REVENUE	25,844.0		20,390.0		21,335.7
Cost of Sales:
New vehicle	10,880.1		9,834.5		10,662.6
Used vehicle	7,950.7		5,142.3		5,098.5
Parts and service	2,033.9		1,796.6		1,949.5
Other	26.7		50.2		102.1
TOTAL COST OF SALES (excluding depreciation shown below)	20,891.4		16,823.6		17,812.7
Gross Profit:
New vehicle	1,201.6		584.1		503.9
Used vehicle	688.1		459.0		368.0
Parts and service	1,672.7		1,460.8		1,622.6
Finance and insurance	1,384.5		1,059.3		1,023.3
Other	5.7		3.2		5.2
TOTAL GROSS PROFIT	4,952.6		3,566.4		3,523.0
Selling, general, and administrative expenses	2,876.2		2,422.0		2,558.6
Depreciation and amortization	193.3		198.9		180.5
Goodwill impairment	—		318.3		—
Franchise rights impairment	—		57.5		9.6
Other (income) expense, net	(19.7)		6.5		(49.3)
OPERATING INCOME	1,902.8		563.2		823.6
Non-operating income (expense) items:
Floorplan interest expense	(25.7)		(63.8)		(138.4)
Other interest expense	(93.0)		(93.7)		(106.7)
Other income, net	24.3		144.4		34.1
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	1,808.4		550.1		612.6
Income tax provision	435.1		168.3		161.8
NET INCOME FROM CONTINUING OPERATIONS	1,373.3		381.8		450.8
Loss from discontinued operations, net of income taxes	(0.3)		(0.2)		(0.8)
NET INCOME	$	1,373.0	$	381.6	$	450.0
BASIC EARNINGS (LOSS) PER SHARE:
Continuing operations	$	18.51	$	4.32	$	5.00
Discontinued operations	$	—	$	—	$	(0.01)
Net income	$	18.50	$	4.32	$	4.99
Weighted average common shares outstanding	74.2		88.3		90.1
DILUTED EARNINGS (LOSS) PER SHARE:
Continuing operations	$	18.31	$	4.30	$	4.98
Discontinued operations	$	—	$	—	$	(0.01)
Net income	$	18.31	$	4.30	$	4.97
Weighted average common shares outstanding	75.0		88.7		90.5
COMMON SHARES OUTSTANDING, net of treasury stock, at period end	62.6		83.5		89.3

See accompanying Notes to Consolidated Financial Statements.

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AUTONATION, INC.

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY

For the Years Ended December 31, 2021, 2020, and 2019

(In millions, except share data)

	Common Stock			Additional Paid-In Capital		Retained Earnings		Treasury Stock		Total
	Shares	Amount
BALANCE AT DECEMBER 31, 2018	102,562,149	$	1.0	$	20.8	$	3,238.3	$	(544.1)	$	2,716.0
Net income	—	—		—		450.0		—		450.0
Repurchases of common stock	—	—		—		—		(44.7)		(44.7)
Stock-based compensation expense	—	—		31.1		—		—		31.1
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	—	—		(16.0)		—		25.7		9.7
BALANCE AT DECEMBER 31, 2019	102,562,149	$	1.0	$	35.9	$	3,688.3	$	(563.1)	$	3,162.1
Net income	—	—		—		381.6				381.6
Repurchases of common stock	—	—		—		—		(382.3)		(382.3)
Stock-based compensation expense	—	—		30.2		—		—		30.2
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	—	—		(13.0)		—		57.6		44.6
Cumulative effect of change in accounting principle - current expected credit losses	—	—		—		(0.5)		—		(0.5)
BALANCE AT DECEMBER 31, 2020	102,562,149	$	1.0	$	53.1	$	4,069.4	$	(887.8)	$	3,235.7
Net income	—	—		—		1,373.0		—		1,373.0
Repurchases of common stock	—	—		—		—		(2,303.2)		(2,303.2)
Treasury stock cancellation	(16,000,000)	(0.2)		(40.6)		(797.2)		838.0		—
Stock-based compensation expense	—	—		35.0		—		—		35.0
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	—	—		(44.3)		(5.3)		86.1		36.5
BALANCE AT DECEMBER 31, 2021	86,562,149	$	0.8	$	3.2	$	4,639.9	$	(2,266.9)	$	2,377.0

See accompanying Notes to Consolidated Financial Statements.

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AUTONATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31,

(In millions)

	2021		2020		2019
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income	$	1,373.0	$	381.6	$	450.0
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations	0.3		0.2		0.8
Depreciation and amortization	193.3		198.9		180.5
Amortization of debt issuance costs and accretion of debt discounts	4.9		4.7		5.2
Stock-based compensation expense	35.0		30.2		31.1
Deferred income tax provision (benefit)	(17.4)		(38.9)		45.8
Net gain on asset sales and dispositions	(18.1)		(7.9)		(44.9)
Goodwill impairment	—		318.3		—
Franchise rights impairment	—		57.5		9.6
Other non-cash impairment charges	3.2		14.7		2.2
Gain on equity investments	(10.9)		(131.5)		(25.7)
Other	(13.3)		(11.0)		(6.8)
(Increase) decrease, net of effects from business combinations and divestitures:
Receivables	114.9		70.0		56.2
Inventory	800.4		703.6		296.0
Other assets	92.2		85.6		49.5
Increase (decrease), net of effects from business combinations and divestitures:
Vehicle floorplan payable-trade	(1,059.7)		(579.3)		(240.6)
Accounts payable	57.2		47.7		(17.6)
Other liabilities	73.0		63.2		(22.1)
Net cash provided by continuing operations	1,628.0		1,207.6		769.2
Net cash used in discontinued operations	(0.3)		—		—
Net cash provided by operating activities	1,627.7		1,207.6		769.2
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases of property and equipment	(215.7)		(156.0)		(269.3)
Proceeds from the disposal of assets held for sale	37.1		16.4		38.0
Insurance recoveries on property and equipment	2.0		1.9		3.5
Cash used in business acquisitions, net of cash acquired	(432.7)		(0.4)		(4.7)
Cash received from business divestitures, net of cash relinquished	48.7		9.0		115.6
Proceeds from the sale of equity securities	109.4		105.4		—
Investment in equity securities	(5.5)		(50.0)		—
Other	(3.6)		—		1.1
Net cash used in continuing operations	(460.3)		(73.7)		(115.8)
Net cash used in discontinued operations	—		—		—
Net cash used in investing activities	(460.3)		(73.7)		(115.8)

See accompanying Notes to Consolidated Financial Statements.

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AUTONATION, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS

For the Years Ended December 31,

(In millions)

(Continued)

	2021		2020		2019
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Repurchases of common stock	(2,318.2)		(367.2)		(44.7)
Proceeds from 1.95% Senior Notes due 2028	399.2		—		—
Proceeds from 2.4% Senior Notes due 2031	448.8		—		—
Proceeds from 4.75% Senior Notes due 2030	—		497.4		—
Payment of 3.35% Senior Notes due 2021	(300.0)		—		—
Payment of 5.5% Senior Notes due 2020	—		(350.0)		—
Proceeds from revolving credit facilities	—		1,110.0		—
Payments of revolving credit facilities	—		(1,110.0)		—
Net proceeds from (payments of) commercial paper	340.0		(170.0)		(460.0)
Payment of debt issuance costs	(8.0)		(11.0)		—
Net payments of vehicle floorplan payable - non-trade	(263.9)		(233.3)		(134.3)
Payments of other debt obligations	(10.9)		(17.2)		(31.0)
Proceeds from the exercise of stock options	54.5		52.7		12.7
Payments of tax withholdings for stock-based awards	(18.0)		(8.1)		(3.0)
Net cash used in continuing operations	(1,676.5)		(606.7)		(660.3)
Net cash used in discontinued operations	—		—		—
Net cash used in financing activities	(1,676.5)		(606.7)		(660.3)
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(509.1)		527.2		(6.9)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at beginning of year	569.7		42.5		49.4
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at end of year	$	60.6	$	569.7	$	42.5

See accompanying Notes to Consolidated Financial Statements.

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AUTONATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(All tables in millions, except per share data)

1. DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Business

AutoNation, Inc., through its subsidiaries, is the largest automotive retailer in the United States. As of December 31, 2021, we owned and operated 339 new vehicle franchises from 247 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores sell 33 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 90% of the new vehicles that we sold in 2021, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, Stellantis, Mercedes-Benz, BMW, and Volkswagen (including Audi and Porsche). As of December 31, 2021, we also owned and operated 57 AutoNation-branded collision centers, 9 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, and 3 parts distribution centers.

We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service” (also referred to as “After-Sales”), which includes automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products (also referred to as “Customer Financial Services”), which include vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. For convenience, the terms “AutoNation,” “Company,” and “we” are used to refer collectively to AutoNation, Inc. and its subsidiaries, unless otherwise required by the context. Our dealership operations are conducted by our subsidiaries.

Basis of Presentation

The accompanying Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries. All of our automotive dealership subsidiaries are indirectly wholly owned by the parent company, AutoNation, Inc. Intercompany accounts and transactions have been eliminated in the consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ materially from these estimates. We periodically evaluate estimates and assumptions used in the preparation of the financial statements and make changes on a prospective basis when adjustments are necessary. Such estimates and assumptions affect, among other things, our goodwill, indefinite-lived intangible asset, and long-lived asset valuations; inventory valuation; equity investment valuation; assets held for sale; accruals for chargebacks against revenue recognized from the sale of finance and insurance products; accruals related to self-insurance programs; certain legal proceedings; assessment of the annual income tax expense; deferred income taxes and income tax contingencies; the allowance for expected credit losses; and measurement of performance-based compensation costs.

Cash and Cash Equivalents

We consider all highly liquid investments with a maturity of three months or less as of the date of purchase to be cash equivalents unless the investments are legally or contractually restricted for more than three months. Under our cash management system, outstanding checks that are in excess of the cash balances at certain banks are included in Accounts Payable in the Consolidated Balance Sheets and changes in these amounts are reflected in operating cash flows in the accompanying Consolidated Statements of Cash Flows.

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AUTONATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Inventory

Inventory consists primarily of new and used vehicles held for sale, valued at the lower of cost or net realizable value using the specific identification method. Cost includes acquisition, reconditioning, dealer installed accessories, and transportation expenses. Our new vehicle inventory costs are generally reduced by manufacturer holdbacks (percentage of either the manufacturer’s suggested retail price or invoice price of a new vehicle that the manufacturer repays to the dealer), incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising assistance. Parts, accessories, and other inventory are valued at the lower of cost or net realizable value. See Note 5 of the Notes to Consolidated Financial Statements for more detailed information about our inventory.

Property and Equipment, net

Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. In addition, we capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and depreciated over the estimated useful lives of the assets. Leased property meeting certain criteria is capitalized as a finance lease right-of-use asset and the present value of the related lease payments is recorded as a liability and included in current and/or long-term debt based on the lease term. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in Other (Income) Expense, Net (within Operating Income) in the Consolidated Statements of Income. See Note 6 of the Notes to Consolidated Financial Statements for detailed information about our property and equipment.

Depreciation is recorded over the estimated useful lives of the assets involved using the straight-line method. Leasehold improvements and finance lease right-of-use assets are amortized to depreciation expense over the estimated useful life of the asset or the respective lease term used in determining lease classification, whichever is shorter. The range of estimated useful lives is as follows:

Buildings and improvements    5 to 40 years

Furniture, fixtures, and equipment    3 to 10 years

We continually evaluate property and equipment, including leasehold improvements, to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the remaining balance should be evaluated for possible impairment. Such events or changes may include a significant decrease in market value, a significant change in the business climate in a particular market, a current expectation that more-likely-than-not a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, or a current-period operating or cash flow loss combined with historical losses or projected future losses. We use an estimate of the related undiscounted cash flows over the remaining life of the asset (asset group) in assessing whether an asset (asset group) is recoverable. If the asset (asset group) is not recoverable, we determine the fair value of the asset (asset group) based on Level 3 inputs, and measure impairment losses based upon the amount by which the carrying amount of the asset (asset group) exceeds the fair value. If we recognize an impairment loss on a depreciable long-lived asset, the adjusted carrying amount of the asset becomes its new cost basis, which is depreciated over the remaining useful life of that asset.

When property and equipment are identified as held for sale, we reclassify the held for sale assets to Other Current Assets and cease recording depreciation. We measure each long-lived asset or disposal group at the lower of its carrying amount or fair value less cost to sell and recognize a loss for any initial adjustment of the long-lived asset’s or disposal group’s carrying amount to fair value less cost to sell in the period the “held for sale” criteria are met. Such valuations include estimations of fair values and incremental direct costs to transact a sale. The fair value measurements for our long-lived assets held for sale are based on Level 3 inputs, which consider information obtained from third-party real estate valuation sources, or, in certain cases, pending agreements to sell the related assets. We recognize an impairment loss if the amount of the asset’s or disposal group’s carrying amount exceeds the asset’s or disposal group’s estimated fair value less cost to sell.

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AUTONATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Assets held for sale in both continuing operations and discontinued operations are reported in the “Corporate and other” category of our segment information. We had assets held for sale in continuing operations of $53.3 million at December 31, 2021, and $25.5 million at December 31, 2020. We had assets held for sale in discontinued operations of $1.1 million at December 31, 2021, and $8.0 million at December 31, 2020.

See Note 19 of the Notes to Consolidated Financial Statements for information about our fair value measurement valuation process and impairment charges that were recorded during 2021 and 2020.

Leases

We lease numerous facilities and various types of equipment relating to our operations. See Note 8 of the Notes to Consolidated Financial Statements for a discussion of our significant accounting policies related to leases.

Goodwill and Other Intangible Assets, net

Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so.

Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from three to thirty years.

We do not amortize goodwill or franchise rights assets. Goodwill and franchise rights are tested for impairment annually or more frequently when events or changes in circumstances indicate that impairment may have occurred.

During 2021, we did not record any goodwill or franchise rights impairment charges. During 2020, we recorded $318.3 million of goodwill impairment charges and $57.5 million of franchise rights impairment charges. These non-cash impairment charges are reflected as Goodwill Impairment and Franchise Rights Impairment, respectively, in the accompanying Consolidated Statements of Income.

See Note 7 of the Notes to Consolidated Financial Statements for more information about our goodwill and other intangible assets and Note 19 of the Notes to Consolidated Financial Statements for information about our annual impairment tests of goodwill and franchise rights.

Other Current Assets

Other current assets consist of various items, including, among other items, assets held for sale in continuing operations and discontinued operations, prepaid expenses, contract assets, and deposits.

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AUTONATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

Other Assets

Other assets consist of various items, including, among other items, service loaner and rental vehicle inventory, net, the cash surrender value of corporate-owned life insurance held in a Rabbi Trust for deferred compensation plan participants, and investments in equity securities.

Other Current Liabilities

Other current liabilities consist of various items payable within one year including, among other items, accruals for sales taxes, the current portions of finance and insurance chargeback liabilities, operating lease liabilities, contract liabilities, and deferred revenue, customer deposits, accrued expenses, and accrued interest payable.

Other Liabilities

Other liabilities consist of various items payable beyond one year including, among other items, the long-term portions of deferred compensation obligations, finance and insurance chargeback liabilities, contract liabilities, and self-insurance liabilities.

Employee Savings Plans

We offer a 401(k) plan to all of our associates and provided a matching contribution to certain associates that participate in the plan of $14.3 million in 2021, $4.5 million in 2020, and $15.0 million in 2019. Effective in April 2020, we suspended matching contributions to the 401(k) plan in light of the uncertain economic conditions resulting from the COVID-19 pandemic. A matching contribution to the 401k plan was reinstated effective January 2021. Employer matching contributions are subject to a three-year graded vesting period for associates hired subsequent to January 1, 2011, and are fully vested immediately upon contribution for associates hired prior to January 1, 2011.

We offer a deferred compensation plan (the “Plan”) to provide certain associates and non-employee directors with the opportunity to accumulate assets for retirement on a tax-deferred basis. Participants in the Plan are allowed to defer a portion of their compensation and are fully vested in their respective deferrals and earnings. Participants may choose from a variety of investment options, which determine their earnings credits. Effective in January 2021, we suspended matching contributions to the Plan, which were reinstated effective January 2022. We provided a matching contribution to employee participants in the Plan of $1.5 million for 2020 and $1.4 million for 2019. One-third of the matching contribution is vested and credited to participants on the first day of the subsequent calendar year, and an additional one-third vests and is credited on each of the first and second anniversaries of such date. We may also make discretionary contributions, which vest three years after the effective date of the discretionary contribution. The balances due to participants in the Plan were $117.2 million as of December 31, 2021, and $99.8 million as of December 31, 2020, and are included in Other Current Liabilities and Other Liabilities in the accompanying Consolidated Balance Sheets.

Stock-Based Compensation

We grant stock-based awards in the form of time-based and performance-based restricted stock units (“RSUs”), which are issued from our treasury stock upon vesting. Compensation cost for RSUs is based on the closing price of our common stock on the date of grant. Prior to 2017, we also granted stock options and restricted stock.

Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost for time-based RSUs, restricted stock awards, and stock options is recognized on a straight-line basis over the shorter of the stated vesting period or the period until associates become retirement-eligible. Compensation cost for performance-based RSUs is recognized over the requisite service period based on the expected achievement level of the performance goals, which is evaluated over the performance period. The amount of compensation cost recognized on performance-based RSUs depends on the relative satisfaction of the performance condition based on performance to date. We account for forfeitures of stock-based awards as they occur. See Note 14 of the Notes to Consolidated Financial Statements for more information about our stock-based compensation arrangements.

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Revenue Recognition

Revenue consists of the sales of new and used vehicles, sales of parts and automotive services, commissions for the placement of finance and insurance products, and sales of other products. See Note 2 of the Notes to Consolidated Financial Statements for a discussion of our significant accounting policies related to revenue recognition.

Insurance

Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, employee medical benefits, automobile, and workers’ compensation. Costs in excess of this retained risk per claim may be insured under various contracts with third-party insurance carriers. We review our claim and loss history on a periodic basis to assist in assessing our future liability. The ultimate costs of these retained insurance risks are estimated by management and by third-party actuarial evaluation of historical claims experience, adjusted for current trends and changes in claims-handling procedures. See Note 11 of the Notes to Consolidated Financial Statements for more information on our self-insurance liabilities.

Manufacturer Incentives and Other Rebates

We receive various incentives from manufacturers based on achieving certain objectives, such as specified sales volume targets, as well as other objectives, including maintaining standards of a particular vehicle brand, which may include but are not limited to facility image and design requirements, customer satisfaction survey results, and training standards, among others. These incentives are typically based upon units purchased or sold. These manufacturer incentives are recognized as a reduction of new vehicle cost of sales when earned, generally at the time the related vehicles are sold or upon attainment of the particular program goals, whichever is later.

We also receive manufacturer rebates and assistance for holdbacks, floorplan interest, and non-reimbursement-based advertising expenses (described below), which are reflected as a reduction in the carrying value of each vehicle purchased by us. We recognize holdbacks, floorplan interest assistance, non-reimbursement-based advertising rebates, cash incentives, and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold.

Advertising

We generally expense the cost of advertising as incurred, net of earned manufacturer reimbursements for specific advertising costs and other discounts. Advertising expense, net of manufacturer advertising reimbursements, was $170.3 million in 2021, $161.7 million in 2020, and $187.8 million in 2019, and is reflected as a component of Selling, General, and Administrative Expenses in the accompanying Consolidated Statements of Income.

Manufacturer advertising rebates that are reimbursements of costs associated with specific advertising expenses are earned in accordance with the respective manufacturers’ reimbursement-based advertising assistance programs, which is typically after we have incurred the corresponding advertising expenses, and are reflected as a reduction of advertising expense. Manufacturer advertising reimbursements classified as an offset to advertising expenses were $51.4 million in 2021, $48.2 million in 2020, and $59.8 million in 2019. All other non-reimbursement-based manufacturer advertising rebates that are not associated with specific advertising expenses are recorded as a reduction of inventory and recognized as a reduction of new vehicle cost of sales in the period the related vehicle is sold.

Parts and Service Internal Profit

Our parts and service departments recondition the majority of used vehicles acquired by our used vehicle departments and perform preparatory work on new vehicles acquired by our new vehicle departments. The parts and service departments charge the new and used vehicle departments as if they were third parties in order to account for total activity performed by that department. Revenues and costs of sales associated with the internal work performed by our parts and service departments are reflected in our parts and service results in our Consolidated Statements of Income. New and used vehicle revenues and costs of sales are reduced by the amount of the intracompany charge. As a result, the revenues and

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costs of sales associated with the internal work performed by our parts and service departments are eliminated in consolidation. We also defer internal profit associated with the internal work performed by our parts and service departments on our vehicle inventory until such vehicles have been sold.

Income Taxes

We file a consolidated federal income tax return. Deferred income taxes have been provided for temporary differences between the recognition of revenue and expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the financial statements. See Note 12 of the Notes to Consolidated Financial Statements for more detailed information related to income taxes.

Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested RSU awards. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options and unvested RSU awards. See Note 3 of the Notes to Consolidated Financial Statements for more information on the computation of earnings per share.

2. REVENUE RECOGNITION

Disaggregation of Revenue

The significant majority of our revenue is from contracts with customers. Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue. 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.

	Year Ended December 31, 2021
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	3,601.8	$	3,969.8	$	4,510.1	$	—	$	12,081.7
Used vehicle	2,875.0		2,370.5		3,067.4		325.9		8,638.8
Parts and service	1,007.6		950.0		1,246.7		502.3		3,706.6
Finance and insurance, net	469.1		489.6		401.0		24.8		1,384.5
Other	6.4		18.6		4.7		2.7		32.4
	$	7,959.9	$	7,798.5	$	9,229.9	$	855.7	$	25,844.0
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	7,260.7	$	7,079.0	$	8,197.6	$	535.6	$	23,072.9
Goods and services transferred over time(2)	699.2		719.5		1,032.3		320.1		2,771.1
	$	7,959.9	$	7,798.5	$	9,229.9	$	855.7	$	25,844.0

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	Year Ended December 31, 2020
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	3,411.1	$	3,283.7	$	3,723.8	$	—	$	10,418.6
Used vehicle	1,781.4		1,516.5		2,125.9		177.5		5,601.3
Parts and service	891.5		811.3		1,058.1		496.5		3,257.4
Finance and insurance, net	370.5		361.7		294.7		32.4		1,059.3
Other	36.1		14.8		0.3		2.2		53.4
	$	6,490.6	$	5,988.0	$	7,202.8	$	708.6	$	20,390.0
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	5,841.6	$	5,343.8	$	6,301.3	$	413.7	$	17,900.4
Goods and services transferred over time(2)	649.0		644.2		901.5		294.9		2,489.6
	$	6,490.6	$	5,988.0	$	7,202.8	$	708.6	$	20,390.0

	Year Ended December 31, 2019
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	3,502.5	$	3,695.6	$	3,968.4	$	—	$	11,166.5
Used vehicle	1,769.5		1,501.9		2,045.6		149.5		5,466.5
Parts and service	959.0		889.7		1,136.0		587.4		3,572.1
Finance and insurance, net	354.6		368.3		279.2		21.2		1,023.3
Other	85.8		13.2		5.6		2.7		107.3
	$	6,671.4	$	6,468.7	$	7,434.8	$	760.8	$	21,335.7
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	5,969.6	$	5,768.3	$	6,467.5	$	399.3	$	18,604.7
Goods and services transferred over time(2)	701.8		700.4		967.3		361.5		2,731.0
	$	6,671.4	$	6,468.7	$	7,434.8	$	760.8	$	21,335.7
(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.

Performance Obligations and Significant Judgments and Estimates Related to Revenue Recognition

New and Used Vehicle

We sell new vehicles at our franchised dealerships and used vehicles at our franchised dealerships and AutoNation USA used vehicle stores. The transaction price for a vehicle sale is determined with the customer at the time of sale. Customers often trade in their own vehicle to apply toward the purchase of a retail new or used vehicle. The “trade-in” vehicle is a

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type of noncash consideration measured at fair value, based on external and internal market data for the specific vehicle, and applied as payment to the contract price for the purchased vehicle.

When we sell a new or used vehicle, we typically transfer control at a point in time upon delivery of the vehicle to the customer, which is generally at time of sale, as the customer is able to direct the use of, and obtain substantially all of the benefits from, the vehicle at such time. We do not directly finance our customers’ vehicle purchases or leases. In many cases, we arrange third-party financing for the retail sale or lease of vehicles to our customers in exchange for a fee paid to us by the third-party financial institution. We receive payment directly from the customer at the time of sale or from the third-party financial institution (referred to as contracts-in-transit or vehicle receivables, which are part of our receivables from contracts with customers) within a short period of time following the sale. We establish provisions, which are not significant, for estimated returns and warranties on the basis of both historical information and current trends.

We also offer auction services at our AutoNation-branded automotive auctions, revenue from which is included within Used Vehicle wholesale revenue. The transaction price for auction services is based on an established pricing schedule and determined with the customer at the time of sale, and payment is due upon completion of service. We satisfy our performance obligations related to auction services at the point in time that control transfers to the customer, which is when the service is completed.

Parts and Service

We sell parts and automotive services related to customer-paid repairs and maintenance, repairs and maintenance under manufacturer warranties and extended service contracts, and collision-related repairs. We also sell parts through our wholesale and retail counter channels.

Each automotive repair and maintenance service is a single performance obligation that includes both the parts and labor associated with the service. Payment for automotive service work is typically due upon completion of the service, which is generally completed within a short period of time from contract inception. The transaction price for automotive repair and maintenance services is based on the parts used, the number of labor hours applied, and standardized hourly labor rates. We satisfy our performance obligations, transfer control, and recognize revenue over time for automotive repair and maintenance services because we are creating an asset with no alternative use and we have an enforceable right to payment for performance completed to date. We use an input method to recognize revenue and measure progress based on labor hours expended relative to the total labor hours expected to be expended to satisfy the performance obligation. We have determined labor hours expended to be the relevant measure of work performed to complete the automotive repair or maintenance service for the customer. As a practical expedient, since automotive repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue.

The transaction price for wholesale and retail counter parts sales is determined at the time of sale based on the quantity and price of each product purchased. Payment is typically due at time of sale, or within a short period of time following the sale. We establish provisions, which are not significant, for estimated parts returns based on historical information and current trends. Delivery methods of wholesale and retail counter parts vary; however, we generally consider control of wholesale and retail counter parts to transfer when the products are shipped, which typically occurs the same day as or within a few days of the sale.

Finance and Insurance

We sell and receive a commission on the following types of finance and insurance products: extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products, among others. We offer products that are sold and administered by independent third parties, including the vehicle manufacturers’ captive finance subsidiaries.

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Pursuant to our arrangements with these third-party providers, we sell the products on a commission basis, and, for certain products, we also participate in future profit pursuant to retrospective commission arrangements with the issuers of those contracts through the life of the related contracts. For retrospective commission arrangements, we are paid annually based on the annual performance of the issuers’ product portfolio. For the majority of finance and insurance product sales, our performance obligation is to arrange for the provision of goods or services by another party. Our performance obligation is satisfied when this arrangement is made, which is when the finance and insurance product is delivered to the end-customer, generally at the time of the vehicle sale. As agent, we recognize revenue in the amount of any fee or commission to which we expect to be entitled, which is the net amount of consideration that we retain after paying the third-party provider the consideration received in exchange for the goods or services to be fulfilled by that party.

The retrospective commission we earn on each product sold is a form of variable consideration that is subject to constraint due to it being highly susceptible to factors outside our influence and control. Our agreements with the third-party administrators generally provide for an annual retrospective commission payout based on the product portfolio performance for that year. We estimate variable consideration related to retrospective commissions and perform a constraint analysis using the expected value method based on the historical performance of the product portfolios and current trends to estimate the amount of retrospective commissions to which we expect we will be entitled. At each reporting period, we reassess our expectations about the amount of retrospective commission variable consideration to which we expect to be entitled and recognize revenue when we no longer believe a significant revenue reversal is probable.

Additionally, we may be charged back for commissions related to finance and insurance products in the event of early termination, default, or prepayment of the contracts by end-customers (“chargebacks”). An estimated refund liability for chargebacks against the revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized and is based primarily on our historical chargeback experience. We update our measurement of the chargeback liability at each reporting date for changes in expectations about the amount of chargebacks. See Note 10 of the Notes to Consolidated Financial Statements for more information regarding chargeback liabilities.

We also sell a vehicle maintenance program (the Vehicle Care Program or “VCP”) where we act as the principal in the sale since we have the primary responsibility to provide the specified services to the customer under the VCP contract. When a VCP product is sold in conjunction with the sale of a vehicle to the same customer, the stand-alone selling prices of each product are based on observable selling prices. Under a VCP contract, a customer purchases a specific number of maintenance services to be redeemed at an AutoNation location over a five-year term from the date of purchase. We satisfy our performance obligations and recognize revenue as maintenance services are rendered, since the customer benefits when we have completed the maintenance service. Although payment is due from the customer at the time of sale and services are rendered at points in time during a five-year contract term, these contracts do not contain a significant financing component. 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	$	93.8	$	33.3	$	44.4	$	16.1

We also recognize revenue, net of estimated chargebacks, for commissions earned by us for the transfer of financial assets when we arrange installment loans and leases with third-party lenders in connection with customer vehicle purchases.

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Other Revenue

The majority of our other revenue is generated from the sale of vehicles to fleet/rental car companies that are specifically ordered for such companies (“fleet” sales). Revenue recognition for fleet sales is very similar to the recognition of revenue for new vehicles, described above.

Contract Assets and Liabilities

When the timing of our provision of goods or services is different from the timing of payments made by our customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with automotive repair and maintenance services, as well as our estimate of variable consideration that has been included in the transaction price for certain finance and insurance products (retrospective commissions). These contract assets are reclassified to receivables when the right to consideration becomes unconditional. Contract liabilities primarily relate to upfront payments received from customers for the sale of VCP contracts.

Our receivables from contracts with customers are included in Receivables, net, our current contract asset is included with Other Current Assets, our long-term contract asset is included with Other Assets, our current contract liability is included with Other Current Liabilities, and our long-term contract liability is included with Other Liabilities in our Consolidated Balance Sheets.

The following table provides the balances at December 31 of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities:

	2021		2020		2019
Receivables from contracts with customers, net	$	539.9	$	595.0	$	662.0
Contract Asset (Current)	$	30.4	$	25.7	$	26.7
Contract Asset (Long-Term)	$	14.2	$	10.2	$	7.0
Contract Liability (Current)	$	33.6	$	32.5	$	32.6
Contract Liability (Long-Term)	$	60.5	$	56.0	$	57.7

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 year from amounts included in the contract liability balance at the beginning of the period and performance obligations satisfied in previous periods:

	2021		2020		2019
Amounts included in contract liability at the beginning of the period	$	32.1	$	31.0	$	35.1
Performance obligations satisfied in previous periods	$	19.4	$	19.0	$	9.3

Other significant changes include contract assets reclassified to receivables of $25.0 million during 2021 and $26.1 million in 2020.

Contract Costs

For sales commissions incurred related to sales of vehicles and sales of finance and insurance products for which we act as agent, we have elected as a practical expedient to not capitalize the incremental costs to obtain those contracts since they are point-of-sale transactions and the amortization period would be immediate.

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Sales commissions and third-party administrator fees incurred related to sales of VCP products are capitalized since these payments are directly related to sales achieved during a time period and would not have been incurred if the contract had not been obtained. Since the capitalized costs are related to services that are transferred during a five-year contract term, we amortize the assets over the contract term of five years consistent with the pattern of transfer of the service to which the assets relate. We had capitalized costs incurred to obtain or fulfill a VCP contract with a customer of $9.4 million as of December 31, 2021 and $9.0 million at December 31, 2020. We amortized $3.8 million and $3.5 million of these capitalized costs during 2021 and 2020, respectively.

3. EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested RSU awards. Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options and unvested RSU awards.

The following table presents the calculation of basic and diluted EPS:

	2021		2020		2019
Net income from continuing operations	$	1,373.3	$	381.8	$	450.8
Loss from discontinued operations, net of income taxes	(0.3)		(0.2)		(0.8)
Net income	$	1,373.0	$	381.6	$	450.0
Basic weighted average common shares outstanding	74.2		88.3		90.1
Dilutive effect of stock options and unvested RSUs	0.8		0.4		0.4
Diluted weighted average common shares outstanding	75.0		88.7		90.5
Basic EPS amounts(1):
Continuing operations	$	18.51	$	4.32	$	5.00
Discontinued operations	$	—	$	—	$	(0.01)
Net income	$	18.50	$	4.32	$	4.99
Diluted EPS amounts(1):
Continuing operations	$	18.31	$	4.30	$	4.98
Discontinued operations	$	—	$	—	$	(0.01)
Net income	$	18.31	$	4.30	$	4.97
(1) EPS amounts are calculated discretely and, therefore, may not add up to the total due to rounding.

A summary of anti-dilutive equity instruments excluded from the computation of diluted EPS is as follows:

	2021	2020	2019
Anti-dilutive equity instruments excluded from the computation of diluted EPS	—	1.7	2.4

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4. RECEIVABLES, NET

The components of receivables, net of allowances for expected credit losses, at December 31 are as follows:

	2021		2020
Contracts-in-transit and vehicle receivables	$	347.4	$	445.8
Trade receivables	162.6		138.0
Manufacturer receivables	148.4		210.0
Other	77.0		55.1
	735.4		848.9
Less: allowances for expected credit losses	(5.4)		(3.7)
Receivables, net	$	730.0	$	845.2

Contracts-in-transit and vehicle receivables primarily represent receivables from financial institutions for the portion of the vehicle sales price financed by our customers. Trade receivables represent amounts due for parts and services sold, excluding amounts due from manufacturers, as well as receivables from finance organizations for commissions on the sale of finance and insurance products. Manufacturer receivables represent amounts due from manufacturers for holdbacks, rebates, incentives, floorplan assistance, and warranty claims. We evaluate our receivables for collectability based on past collection experience, current information, and reasonable and supportable forecasts.

5. INVENTORY AND VEHICLE FLOORPLAN PAYABLE

The components of inventory at December 31 are as follows:

	2021		2020
New vehicles	$	515.1	$	1,761.9
Used vehicles	1,109.3		648.4
Parts, accessories, and other	223.5		188.2
Inventory	$	1,847.9	$	2,598.5

The components of vehicle floorplan payables at December 31 are as follows:

	2021		2020
Vehicle floorplan payable - trade	$	489.9	$	1,541.7
Vehicle floorplan payable - non-trade	967.7		1,218.2
Vehicle floorplan payable	$	1,457.6	$	2,759.9

Vehicle floorplan payable-trade reflects amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with the corresponding manufacturers’ captive finance subsidiaries (“trade lenders”). Vehicle floorplan payable-non-trade represents amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with non-trade lenders, as well as amounts borrowed under our secured used vehicle floorplan facilities. Changes in vehicle floorplan payable-trade are reported as operating cash flows and changes in vehicle floorplan payable-non-trade are reported as financing cash flows in the accompanying Consolidated Statements of Cash Flows.

Our inventory costs are generally reduced by manufacturer holdbacks, incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising rebates, while the related vehicle floorplan payables are reflective of the gross cost of the vehicle. The vehicle floorplan payables, as shown in the above table, will generally also be higher than the inventory cost due to the timing of the sale of a vehicle and payment of the related liability.

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Vehicle floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related vehicles are sold. Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related receivables.

At December 31, 2021, most of our new vehicle floorplan facilities utilized LIBOR-based interest rates and a smaller portion utilized Prime-based interest rates. Our new vehicle floorplan outstanding had a weighted-average annual interest rate of 1.6% at December 31, 2021, and 1.6% at December 31, 2020. At December 31, 2021, the aggregate capacity under our new vehicle floorplan facilities to finance our new vehicle inventory was approximately $4.8 billion, of which $0.9 billion had been borrowed.

At December 31, 2021, our used vehicle floorplan facilities utilized LIBOR-based interest rates. Our used vehicle floorplan outstanding had a weighted-average annual interest rate of 1.8% at December 31, 2021, and 1.8% at December 31, 2020. At December 31, 2021, the aggregate capacity under our used vehicle floorplan facilities with various lenders to finance a portion of our used vehicle inventory was $592.0 million, of which $581.4 million had been borrowed. The remaining borrowing capacity of $10.6 million was limited to $0.1 million based on the eligible used vehicle inventory that could have been pledged as collateral.

6. PROPERTY AND EQUIPMENT, NET

A summary of property and equipment, net, at December 31 is as follows:

	2021		2020
Land	$	1,471.8	$	1,417.4
Buildings and improvements	2,466.0		2,333.3
Furniture, fixtures, and equipment	1,262.9		1,040.3
	5,200.7		4,791.0
Less: accumulated depreciation and amortization	(1,781.2)		(1,652.9)
Property and equipment, net	$	3,419.5	$	3,138.1

We capitalized interest in connection with various construction projects to build, upgrade, or remodel our facilities of $0.8 million in 2021, $0.6 million in 2020, and $1.3 million in 2019.

7. GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill and intangible assets, net, at December 31 consisted of the following:

	2021		2020
Goodwill	$	1,235.3	$	1,185.0
Franchise rights - indefinite-lived	$	727.5	$	509.0
Other intangible assets	24.0		19.6
	751.5		528.6
Less: accumulated amortization	(8.0)		(7.1)
Intangible assets, net	$	743.5	$	521.5

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Goodwill

Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020, were as follows:

	Domestic		Import		Premium Luxury		Collision Centers		Parts Centers		Corporate & Other		Consolidated
Balance as of January 1, 2020
Goodwill	$	367.3	$	498.9	$	714.9	$	41.7	$	19.1	$	1,470.0	$	3,111.9
Accumulated impairment losses	(140.0)		—		—		—		—		(1,470.0)		(1,610.0)
	227.3		498.9		714.9		41.7		19.1		—		1501.9
Acquisitions, dispositions, and other adjustments, net (1)	(0.1)		1.7		(0.3)		(0.1)		0.2		—		1.4
Impairment	—		—		(257.4)		(41.6)		(19.3)		—		(318.3)
Balance as of December 31, 2020
Goodwill	367.2		500.6		714.6		41.6		19.3		1,470.0		3,113.3
Accumulated impairment losses	(140.0)		—		(257.4)		(41.6)		(19.3)		(1,470.0)		(1,928.3)
	227.2		500.6		457.2		—		—		—		1,185.0
Acquisitions, dispositions, and other adjustments, net (1)	1.5		17.3		26.9		4.6		—		—		50.3
Balance as of December 31, 2021
Goodwill	368.7		517.9		741.5		46.2		19.3		1,470.0		3,163.6
Accumulated impairment losses	(140.0)		—		(257.4)		(41.6)		(19.3)		(1,470.0)		(1,928.3)
	$	228.7	$	517.9	$	484.1	$	4.6	$	—	$	—	$	1,235.3

(1)    Includes amounts reclassified to held for sale and related adjustments, which are presented in Other Current Assets in our Consolidated Balance Sheet as of period end.

See Note 19 of the Notes to Consolidated Financial Statements for more information about our goodwill impairment test.

Intangible Assets

Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers. As of December 31, 2021, we had $727.5 million of franchise rights recorded on our Consolidated Balance Sheet, of which $137.7 million was related to Domestic stores, $143.8 million was related to Import stores, and $446.0 million was related to Premium Luxury stores.

See Note 19 of the Notes to Consolidated Financial Statements for more information about our franchise rights impairment tests.

8.     LEASES

General description

The significant majority of leases that we enter into are for real estate. We lease numerous facilities relating to our operations, including primarily for automobile showrooms, display lots, service facilities, collision repair centers, supply facilities, automobile storage lots, parking lots, offices, and our corporate headquarters. Leases for real property generally have terms ranging from 1 to 25 years. We also lease various types of equipment, including security cameras, diagnostic equipment, copiers, key-cutting machines, and postage machines, among others. Equipment leases generally have terms

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ranging from 1 to 5 years. In addition, we lease certain vehicles from vehicle manufacturers to provide our service customers with the use of a vehicle while their vehicles are being serviced at our dealerships. These service loaner vehicle leases generally have terms ranging from 6 to 18 months, and we typically purchase the service loaner vehicles at the end of the lease.

Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We do not have any significant leases that have not yet commenced but that create significant rights and obligations for us. We have elected the practical expedient under ASC Topic 842 to not separate lease and nonlease components for the following classes of underlying assets: real estate, office equipment, service loaner vehicles, and marketing-related assets (e.g., billboards).

Our real estate and equipment leases often require that we pay maintenance in addition to rent. Additionally, our real estate leases generally require payment of real estate taxes and insurance. Maintenance, real estate taxes, and insurance payments are generally variable and based on actual costs incurred by the lessor. Therefore, these amounts are not included in the consideration of the contract when determining the right-of-use (“ROU”) asset and lease liability, but are reflected as variable lease expenses for those classes of underlying assets for which we have elected the practical expedient to not separate lease and nonlease components.

Leases with an initial term of 12 months or less that do not include a purchase option that is reasonably certain to be exercised are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We rent or sublease certain real estate to third parties, which are primarily operating leases.

Variable lease payments

A majority of our lease agreements include fixed rental payments. Certain of our lease agreements include fixed rental payments that are adjusted periodically for changes in the Consumer Price Index (“CPI”). Payments based on a change in an index or a rate are not considered in the determination of lease payments for purposes of measuring the related lease liability. While lease liabilities are not remeasured as a result of changes to the CPI, changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments are incurred.

Options to extend or terminate leases

Most of our real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. If it is reasonably certain that we will exercise such options, the periods covered by such options are included in the lease term and are recognized as part of our ROU assets and lease liabilities. Certain leases also include options to purchase the leased property or asset. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Discount rate

For our incremental borrowing rate, we generally use a portfolio approach to determine the discount rate for leases with similar characteristics. We determine discount rates based on current market prices of instruments similar to our unsecured borrowings with maturities that align with the relevant lease term, and such rates are then adjusted for our credit spread and the effects of full collateralization.

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The following tables present information about our ROU assets, lease liabilities, total lease costs, cash flows arising from lease transactions, and other supplemental information for the years ended December 31, 2021 and 2020:

Leases	Classification	2021		2020
Assets
Operating	Operating Lease Assets	$	284.0	$	309.5
Finance	Property and Equipment, Net and Other Assets	312.3		102.9
Total right-of-use assets		$	596.3	$	412.4
Liabilities
Current
Operating	Other Current Liabilities	$	37.8	$	38.4
Finance	Current Maturities of Long-Term Debt and Vehicle Floorplan Payable - Trade	27.0		27.2
Noncurrent
Operating	Noncurrent Operating Lease Liabilities	260.1		286.5
Finance	Long-Term Debt, Net of Current Maturities	318.6		107.1
Total lease liabilities		$	643.5	$	459.2

Lease Term and Discount Rate	2021		2020
Weighted average remaining lease term
Operating	12 years		12 years
Finance	17 years		14 years
Weighted-average discount rate
Operating	5.09	%	5.17	%
Finance	4.15	%	6.46	%

Lease cost	Classification	2021		2020
Operating lease cost	Selling, general, and administrative expenses	$	54.8	$	58.3
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization	12.5		9.8
Interest on lease liabilities	Other interest expense and floorplan interest expense	8.0		6.9
Short-term lease cost (1)	Selling, general, and administrative expenses	8.8		7.3
Variable lease cost	Selling, general, and administrative expenses	10.6		7.7
Sublease income	Selling, general, and administrative expenses	(0.9)		(0.5)
Net lease cost		$	93.8	$	89.5
(1) Includes leases with a term of one month or less.

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Other Information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	55.3	$	57.0
Operating cash flows from finance leases (1)	$	38.1	$	38.5
Financing cash flows from finance leases	$	8.5	$	15.0
Supplemental noncash information on adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new:
Operating lease liabilities	$	13.5	$	16.8
Finance lease liabilities	$	249.4	$	57.6
(1) Includes the interest component of payments made on finance leases as well as principal payments on vehicle floorplan payables with trade lenders for certain service loaner vehicle leases.

Maturity of Lease Liabilities	Operating Leases		Finance Leases
Year ending December 31,
2022	$	51.7	$	39.3
2023	43.9		23.6
2024	37.6		23.7
2025	35.4		24.0
2026	31.5		24.3
Thereafter	206.3		333.0
Total lease payments	406.4		467.9
Less: interest	(108.5)		(122.3)
Present value of lease liabilities	$	297.9	$	345.6

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9. LONG-TERM DEBT AND COMMERCIAL PAPER

Long-term debt at December 31 consisted of the following:

Debt Description	Maturity Date	Interest Payable	2021		2020
3.35% Senior Notes	January 15, 2021	January 15 and July 15	$	—	$	300.0
3.5% Senior Notes	November 15, 2024	May 15 and November 15	450.0		450.0
4.5% Senior Notes	October 1, 2025	April 1 and October 1	450.0		450.0
3.8% Senior Notes	November 15, 2027	May 15 and November 15	300.0		300.0
1.95% Senior Notes	August 1, 2028	February 1 and August 1	400.0		—
4.75% Senior Notes	June 1, 2030	June 1 and December 1	500.0		500.0
2.4% Senior Notes	August 1, 2031	February 1 and August 1	450.0		—
Revolving credit facility	March 26, 2025	Monthly	—		—
Finance leases and other debt	Various dates through 2041		330.6		116.6
			2,880.6		2,116.6
Less: unamortized debt discounts and debt issuance costs			(22.2)		(14.8)
Less: current maturities			(12.2)		(309.2)
Long-term debt, net of current maturities			$	2,846.2	$	1,792.6

At December 31, 2021, aggregate maturities of non-vehicle long-term debt were as follows:

Year Ending December 31:
2022	$	12.2
2023	11.9
2024	462.3
2025	463.2
2026	14.1
Thereafter	1,916.9
	$	2,880.6

Senior Unsecured Notes and Credit Agreement

On July 29, 2021, we issued $400.0 million aggregate principal amount of 1.95% Senior Notes due 2028 and $450.0 million aggregate principal amount of 2.4% Senior Notes due 2031, which were sold at 99.805% and 99.735% of the aggregate principal amount, respectively. In January 2021, we repaid the outstanding $300.0 million of 3.35% Senior Notes due 2021.

The interest rates payable on our 3.5% Senior Notes, 4.5% Senior Notes, 3.8% Senior Notes, and 4.75% Senior Notes are subject to adjustment upon the occurrence of certain credit rating events as provided in the indentures for these senior unsecured notes.

Under our amended and restated credit agreement, we have a $1.8 billion revolving credit facility that matures on March 26, 2025. The credit agreement also contains an accordion feature that allows us, subject to credit availability and certain other conditions, to increase the amount of the revolving credit facility, together with any added term loans, by up to $500.0 million in the aggregate. We have a $200.0 million letter of credit sublimit as part of our revolving credit facility. The amount available to be borrowed under the revolving credit facility is reduced on a dollar-for-dollar basis by the

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cumulative amount of any outstanding letters of credit, which was $39.7 million at December 31, 2021, leaving an additional borrowing capacity under the revolving credit facility of $1.8 billion at December 31, 2021.

Our revolving credit facility under the amended credit agreement provides for a commitment fee on undrawn amounts ranging from 0.125% to 0.20% and interest on borrowings at LIBOR or the base rate, in each case plus an applicable margin. The applicable margin ranges from 1.125% to 1.50% for LIBOR borrowings and 0.125% to 0.50% for base rate borrowings. The interest rate charged for our revolving credit facility is affected by our leverage ratio. For instance, an increase in our leverage ratio from greater than or equal to 2.0x but less than 3.25x to greater than or equal to 3.25x would result in a 12.5 basis point increase in the applicable margin.

Within the meaning of Regulation S-X, Rule 3-10, AutoNation, Inc. (the parent company) has no independent assets or operations. If guarantees of our subsidiaries were to be issued under our existing registration statement, we expect that such guarantees would be full and unconditional and joint and several, and any subsidiaries other than the guarantor subsidiaries would be minor.

Other Long-Term Debt

At December 31, 2021, we had finance leases and other debt obligations of $330.6 million, which are due at various dates through 2041. See Note 8 of the Notes to Consolidated Financial Statements for more information related to finance lease obligations.

Commercial Paper

We have a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes on a private placement basis up to a maximum aggregate amount outstanding at any time of $1.0 billion. The interest rate for the commercial paper notes varies based on duration and market conditions. The maturities of the commercial paper notes may vary, but may not exceed 397 days from the date of issuance. Proceeds from the issuance of commercial paper notes are used to repay borrowings under the revolving credit facility, to finance acquisitions and for working capital, capital expenditures, share repurchases, and/or other general corporate purposes. We plan to use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. A downgrade in our credit ratings could negatively impact our ability to issue, or the interest rates for, commercial paper notes.

At December 31, 2021, we had $340.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 0.47% and a weighted-average remaining term of 10 days. We had no commercial paper notes outstanding at December 31, 2020.

10. CHARGEBACK LIABILITY

We may be charged back for commissions related to financing, vehicle service, or protection products in the event of early termination, default, or prepayment of the contracts by customers (“chargebacks”). However, our exposure to loss generally is limited to the commissions that we receive. An estimated chargeback liability is recorded in the period in which the related finance and insurance revenue is recognized. The following is a rollforward of our estimated chargeback liability for each of the three years presented in our Consolidated Financial Statements:

	2021		2020		2019
Balance - January 1	$	142.1	$	134.5	$	128.1
Add: Provisions	168.9		118.1		108.6
Deduct: Chargebacks	(140.0)		(110.5)		(102.2)
Balance - December 31	$	171.0	$	142.1	$	134.5

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11. SELF-INSURANCE

Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, employee medical benefits, automobile, and workers’ compensation.

At December 31, 2021 and 2020, current and long-term self-insurance liabilities were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows:

	2021		2020
Self-insurance - current portion	$	44.6	$	35.4
Self-insurance - long-term portion	51.2		47.0
Total self-insurance liabilities	$	95.8	$	82.4

12. INCOME TAXES

The components of the income tax provision from continuing operations for the years ended December 31 are as follows:

	2021		2020		2019
Current:
Federal	$	374.2	$	168.9	$	86.0
State	78.5		37.4		29.4
Federal and state deferred	(17.2)		(39.0)		45.8
Change in valuation allowance, net	(0.2)		0.3		0.2
Adjustments and settlements	(0.2)		0.7		0.4
Income tax provision	$	435.1	$	168.3	$	161.8

A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows:

	2021		%	2020		%	2019		%
Income tax provision at statutory rate	$	379.8	21.0	$	115.5	21.0	$	128.7	21.0
Impact of goodwill impairment	—		—	21.4		3.9	—		—
Other non-deductible expenses, net	(1.2)		(0.1)	8.2		1.5	10.3		1.7
State income taxes, net of federal benefit	60.7		3.4	24.3		4.4	25.7		4.2
	439.3		24.3	169.4		30.8	164.7		26.9
Change in valuation allowance, net	(0.2)		—	0.3		0.1	0.2		—
Adjustments and settlements	(0.2)		—	0.7		0.1	0.4		0.1
Federal and state tax credits	(1.0)		—	(0.7)		(0.1)	(0.9)		(0.2)
Other, net	(2.8)		(0.2)	(1.4)		(0.3)	(2.6)		(0.4)
Income tax provision	$	435.1	24.1	$	168.3	30.6	$	161.8	26.4

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Deferred income tax asset and liability components at December 31 are as follows:

	2021		2020
Deferred income tax assets:
Inventory	$	20.8	$	20.2
Receivable allowances	1.2		1.0
Warranty, chargeback, and self-insurance liabilities	61.9		53.1
Other accrued liabilities	31.5		31.5
Deferred compensation	28.7		24.4
Stock-based compensation	7.0		10.6
Lease liabilities	142.2		80.8
Loss carryforwards— state	6.2		6.8
Other, net	5.3		4.6
Total deferred income tax assets	304.8		233.0
Valuation allowance	(4.6)		(4.8)
Deferred income tax assets, net of valuation allowance	300.2		228.2
Deferred income tax liabilities:
Long-lived assets (intangible assets and property)	(237.9)		(219.6)
Investments - unrealized appreciation	(0.9)		(19.5)
Right-of-use assets	(131.4)		(75.0)
Other, net	(8.2)		(10.0)
Total deferred income tax liabilities	(378.4)		(324.1)
Net deferred income tax liabilities	$	(78.2)	$	(95.9)

Our net deferred tax liability of $78.2 million as of December 31, 2021, and $95.9 million as of December 31, 2020, is classified as Deferred Income Taxes in the accompanying Consolidated Balance Sheets.

Income taxes payable included in Other Current Liabilities totaled $6.9 million at December 31, 2021 and $13.3 million at December 31, 2020.

At December 31, 2021, we had $94.3 million of gross domestic state net operating loss carryforwards and capital loss carryforwards, and $1.6 million of state tax credits, all of which result in a deferred tax asset of $6.2 million and expire from 2022 through 2041.

In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We provide valuation allowances to offset portions of deferred tax assets due to uncertainty surrounding the future realization of such deferred tax assets. At December 31, 2021, we had $4.6 million of valuation allowance related to state net operating loss carryforwards. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized.

We file income tax returns in the U.S. federal jurisdiction and various states. As a matter of course, various taxing authorities, including the IRS, regularly audit us. These audits may culminate in proposed assessments which may ultimately result in our owing additional taxes. Currently, no tax years are under examination by the IRS and tax years from 2014 to 2019 are under examination by U.S. state jurisdictions. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters.

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A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2021		2020		2019
Balance at January 1	$	7.0	$	5.3	$	4.3
Additions based on tax positions related to the current year	—		0.4		—
Additions for tax positions of prior years	0.8		1.6		1.4
Reductions for tax positions of prior years	—		—		—
Reductions for expirations of statute of limitations	(0.9)		(0.3)		(0.4)
Settlements	—		—		—
Balance at December 31	$	6.9	$	7.0	$	5.3

We had accumulated interest and penalties associated with these unrecognized tax benefits of $9.1 million at December 31, 2021, $8.4 million at December 31, 2020, and $7.5 million at December 31, 2019. We additionally had a deferred tax asset of $3.6 million at December 31, 2021, $3.4 million at December 31, 2020, and $2.8 million at December 31, 2019, related to these balances. The net of the unrecognized tax benefits, associated interest, penalties, and deferred tax asset was $12.4 million at December 31, 2021, $12.0 million at December 31, 2020, and $10.0 million at December 31, 2019, which if resolved favorably (in whole or in part) would reduce our effective tax rate. The unrecognized tax benefits, associated interest, penalties, and deferred tax asset are included as components of Other Liabilities and Deferred Income Taxes in the Consolidated Balance Sheets.

It is our policy to account for interest and penalties associated with income tax obligations as a component of income tax expense. We recognized $0.6 million during 2021, $0.7 million during 2020, and $0.7 million during 2019 (each net of tax effect), of interest and penalties as part of the provision for income taxes in the Consolidated Statements of Income.

We do not expect that our unrecognized tax benefits will significantly increase or decrease during the twelve months beginning January 1, 2022.

13. SHAREHOLDERS’ EQUITY

A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows:

	2021		2020		2019
Shares repurchased	22.3		7.2		1.3
Aggregate purchase price	$	2,303.2	$	382.3	$	44.7
Average purchase price per share	$	103.18	$	52.76	$	35.51

As of December 31, 2021, $894.6 million remained available under our stock repurchase limit most recently authorized by our Board of Directors.

Our Board of Directors authorized the retirement of 16.0 million shares of our treasury stock in April 2021, which assumed the status of authorized but unissued shares. Upon the retirement of treasury stock, it is our policy to charge the excess of the cost of the treasury stock over its par value entirely to additional paid-in capital. Any amounts exceeding additional paid-in capital are charged to retained earnings. This retirement had the effect of reducing treasury stock and issued common stock, which includes treasury stock. Our common stock, additional paid-in capital, retained earnings, and treasury stock accounts were adjusted accordingly. There was no impact to shareholders’ equity or outstanding common stock.

We have 5.0 million authorized shares of preferred stock, par value $0.01 per share, none of which are issued or outstanding. The Board of Directors has the authority to issue the preferred stock in one or more series and to establish the rights, preferences, and dividends of such preferred stock.

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A summary of shares of common stock issued in connection with the exercise of stock options follows:

	2021		2020		2019
Shares issued	1.0		1.1		0.4
Proceeds from the exercise of stock options	$	54.5	$	52.7	$	12.7
Average exercise price per share	$	53.13	$	49.91	$	33.87

The following table presents a summary of shares of common stock issued in connection with the settlement of RSUs, as well as shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock and settlement of RSUs:

	2021	2020	2019
Shares issued	0.7	0.5	0.3
Shares surrendered to AutoNation to satisfy tax withholding obligations	0.2	0.2	0.1

14. STOCK-BASED COMPENSATION

The AutoNation, Inc. 2017 Employee Equity and Incentive Plan (the “2017 Plan”) provides for the grant of time-based and performance-based RSUs, restricted stock, stock options, stock appreciation rights, and other stock-based and cash-based awards to employees. A maximum of 5.5 million shares may be issued under the 2017 Plan.

The AutoNation, Inc. 2014 Non-Employee Director Equity Plan (the “2014 Director Plan”) provides for the grant of stock options, restricted stock, RSUs, stock appreciation rights, and other stock-based awards to our non-employee directors. As of December 31, 2021, the maximum number of shares authorized for issuance under the 2014 Director Plan was 600,000.

Restricted Stock Units

On January 4, 2021, each of our non-employee directors received a grant of 3,671 RSUs under the 2014 Director Plan. RSUs granted to our non-employee directors are fully vested on the grant date and are settled in shares of the Company’s common stock on the first trading day of February in the third year following the grant date, unless the non-employee director elects to defer delivery in accordance with the terms of the award and the 2014 Director Plan. Settlement of the RSUs will be accelerated in certain circumstances as provided in the terms of the award and the 2014 Director Plan, including in the event the non-employee director ceases to serve as a non-employee director of the Company. Compensation cost is recognized on the grant date and is based on the closing price of our common stock on the grant date.

In 2021, our Board’s Compensation Committee approved the grant of 0.5 million RSUs, which included time-based and performance-based RSUs. Time-based RSUs vest in equal installments generally over four years. The performance-based RSUs are subject to a one-year earnings performance measure. Certain performance-based RSUs vest in equal installments over four years, and others cliff vest after three years subject to the achievement of certain additional performance goals measured over a three-year period. The additional performance goals are based on an additional measure of earnings, a measure of return on invested capital, and a measure of our performance relative to certain customer satisfaction indices.

The fair value of each RSU award grant is based on the closing price of our common stock on the date of grant. Compensation cost for time-based RSUs is recognized on a straight-line basis over the shorter of the stated vesting period or the period until employees become retirement-eligible, and for performance-based awards is recognized over the requisite service period based on the expected achievement level of the performance goals, which is evaluated over the performance period. The amount of compensation cost recognized on performance-based RSUs depends on the relative satisfaction of the performance condition based on performance to date. We account for forfeitures of stock-based awards as they occur.

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The following table summarizes information about vested and nonvested RSUs for 2021:

	RSUs
	Shares (in actual number of shares)	Weighted-Average Grant Date Fair Value
Nonvested at January 1	1,868,440	$	41.36
Granted	536,645	$	85.45
Vested	(671,926)	$	43.75
Forfeited	(76,713)	$	45.92
Nonvested at December 31	1,656,446	$	54.31

The weighted average grant-date fair value of RSUs and total fair value of RSUs vested are summarized in the following table:

	2021		2020		2019
Weighted average grant-date fair value of RSUs granted	$	85.45	$	44.28	$	35.51
Total fair value of RSUs vested (in millions)	$	51.8	$	23.2	$	9.0

Stock Options

Prior to 2017, we granted non-qualified stock options with a term of 10 years from the date of grant that vested in equal installments over four years. Upon exercise, shares of common stock are issued from our treasury stock.

We used the Black-Scholes valuation model to determine compensation expense and amortized compensation expense on a straight-line basis over the requisite service period of the grants. All stock options were fully vested as of December 31, 2020. The following table summarizes stock option activity during 2021:

	Stock Options
	Shares (in actual number of shares)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Options outstanding at January 1	1,155,693	$	52.78
Granted	—	$	—
Exercised	(1,025,673)	$	53.13
Forfeited	—	$	—
Expired	—	$	—
Options outstanding and exercisable as of December 31	130,020	$	50.01	1.97	$	8.7
Options available for future grants at December 31	2,667,548

The total intrinsic value of stock options exercised was $51.2 million during 2021, $9.8 million during 2020, and $5.2 million during 2019.

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Restricted Stock

Prior to 2017, we granted restricted stock awards, which were issued from our treasury stock. All restricted stock awards were fully vested as of December 31, 2020. Compensation cost for restricted stock awards was based on the closing price of our common stock on the date of grant.

The total fair value of restricted stock awards vested was $0.7 million in 2020 and $1.7 million in 2019.

Compensation Expense

The following table summarizes the total stock-based compensation expense recognized in Selling, General, and Administrative Expenses in the Consolidated Statements of Income and the total recognized tax benefit related thereto:

	2021		2020		2019
RSUs	$	35.0	$	30.0	$	29.4
Stock options	—		0.1		0.9
Restricted stock	—		0.1		0.8
Total stock-based compensation expense	$	35.0	$	30.2	$	31.1
Tax benefit related to stock-based compensation expense	$	2.4	$	2.6	$	2.5

As of December 31, 2021, there was $30.7 million of total unrecognized compensation cost related to non-vested RSUs, which is expected to be recognized over a weighted average period of 1.61 years.

Tax benefits related to stock options exercised and vesting of restricted stock and RSUs were $17.2 million in 2021, $4.3 million in 2020, and $3.3 million in 2019.

15. ACQUISITIONS

During 2021, we purchased 20 stores and 4 collision centers operating in South Carolina, Georgia, and Maryland. Acquisitions are included in the Consolidated Financial Statements from the date of acquisition. The purchase price allocations for these business combinations are preliminary and subject to final adjustments, primarily related to the valuation of working capital amounts and residual goodwill. We did not purchase any stores during 2020 and purchased 2 parts centers in 2019.

The following table summarizes the consideration paid and estimated fair values of the assets acquired and liabilities assumed at the acquisition dates for the stores acquired during 2021.

Inventory	$	46.6
Property and equipment	282.8
Goodwill	51.6
Franchise rights - indefinite-lived	232.4
Other assets	17.7
Vehicle floorplan payable - non-trade	(15.1)
Other liabilities	(2.8)
Aggregate purchase price	$	613.2
Finance lease obligations	(180.5)
Cash used in business acquisition, net of cash acquired	$	432.7

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The goodwill was assigned to the Domestic, Import, Premium Luxury, and Collision Centers reporting units in the amounts of $1.5 million, $15.3 million, $30.3 million, and $4.6 million, respectively. We anticipate that substantially all of the goodwill recorded in 2021 will be deductible for federal income tax purposes.

From each acquisition date to December 31, 2021, the amounts of revenue and earnings of the stores and collision centers acquired during 2021 included in our Consolidated Statement of Income for the year ended December 31, 2021, were $176.9 million and $6.9 million, respectively. Our supplemental pro forma revenue and net income from continuing operations had the acquisition dates been January 1, 2020 are as follows:

	Years Ended December 31,
Unaudited supplemental pro forma:	2021		2020
Revenue	$	26,544.2	$	21,074.8
Net income from continuing operations	$	1,407.0	$	404.1

16. DIVESTITURES

During 2021, we divested 3 stores and 18 collision centers, of which 1 store and 17 collision centers were divested in the fourth quarter of 2021. During 2020, we divested 1 store and 2 collision centers, and terminated 1 franchise. During 2019, we divested 8 stores and 2 collision centers.

We recognized net gains related to store and collision center divestitures of $13.3 million in 2021, of which $10.6 million was recognized during the fourth quarter of 2021, and $2.5 million in 2020 and $29.7 million in 2019. The net gains on these divestitures are included in Other (Income) Expense, Net (within Operating Income) in our Consolidated Statements of Income. The financial condition and results of operations of these businesses were not material to our consolidated financial statements.

17. EXIT OR DISPOSAL COST OBLIGATIONS

On August 17, 2020, we determined to close our aftermarket collision parts (“ACP”) business by the end of 2020. In connection with the closing of the ACP business, we incurred total charges of $36.7 million in 2020 as follows:

Cost Associated with Exit Activity	Total Costs Incurred		Statement of Operations Line Item
Inventory valuation adjustment	$	17.6	Parts and service cost of sales
Contract termination charges	3.2		Other (income) expense, net (operating)
Other associated closing costs	2.6		Selling, general, and administrative expenses
Accelerated depreciation	3.9		Depreciation and amortization
Accelerated amortization	3.2		Selling, general, and administrative expenses
Asset impairment charges	5.1		Other (income) expense, net (operating)
Involuntary termination benefits	1.1		Selling, general, and administrative expenses
	$	36.7

Charges incurred are reflected as part of the “Corporate and other” category of our segment information.

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The following is a rollforward of our liability balances for exit or disposal cost obligations associated with the closing of the ACP business, which are included in Other Current Liabilities in the Consolidated Balance Sheets:

	Contract Termination Charges		Other Associated Closing Costs		Involuntary Termination Benefits		Total
Balance at December 31, 2020	$	0.2	$	2.4	$	0.8	$	3.4
Costs incurred	—		—		—		—
Costs paid or otherwise settled	(0.2)		(2.4)		(0.8)		(3.4)
Balance at December 31, 2021	$	—	$	—	$	—	$	—

-

18. CASH FLOW INFORMATION

Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents reported on our Consolidated Balance Sheets to the total amounts, which include cash, cash equivalents, and restricted cash, reported on our Consolidated Statements of Cash Flows:

	Years Ended December 31,
	2021		2020
Cash and cash equivalents	$	60.4	$	569.6
Restricted cash included in Other Current Assets	0.2		0.1
Total cash, cash equivalents, and restricted cash	$	60.6	$	569.7

Non-Cash Investing and Financing Activities

We had accrued purchases of property and equipment of $25.9 million at December 31, 2021, $9.6 million at December 31, 2020, and $29.4 million at December 31, 2019. We had non-cash investing and financing activities related to increases in property and equipment acquired under financing agreements of $1.7 million during 2020 and $3.3 million during 2019. See Note 8 of the Notes to Consolidated Financial Statements for supplemental noncash information on adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new lease liabilities.

Interest and Income Taxes Paid

We made interest payments, net of amounts capitalized and including interest on vehicle inventory financing, of $113.9 million in 2021, $164.2 million in 2020, and $243.1 million in 2019. We made income tax payments, net of income tax refunds, of $458.3 million in 2021, $190.2 million in 2020, and $107.5 million in 2019.

19. FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTS

The fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of judgment, and therefore cannot be determined with precision.

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Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value:

Level 1	Quoted prices (unadjusted) in active markets for identical assets or liabilities that a reporting entity can access at the measurement date
Level 2	Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly
Level 3	Unobservable inputs

The following methods and assumptions were used by us in estimating fair value disclosures for financial instruments:

•Cash and cash equivalents, receivables, other current assets, vehicle floorplan payable, accounts payable, other current liabilities, commercial paper, and variable rate debt: The amounts reported in the accompanying Consolidated Balance Sheets approximate fair value due to their short-term nature or the existence of variable interest rates that approximate prevailing market rates.

•Investments in Equity Securities: Our equity investments with readily determinable fair values are measured at fair value using Level 1 inputs. In the first quarter of 2021, we sold the remaining shares of one of our minority equity investments with a readily determinable fair value for total proceeds of $109.4 million. The fair value of our equity investments with readily determinable fair values totaled $2.2 million at December 31, 2021, and $101.9 million at December 31, 2020.

Our equity investment that does not have a readily determinable fair value is measured using the measurement alternative as permitted by accounting standards and was recorded at cost, to be subsequently adjusted for observable price changes. During the second quarter of 2021, we identified an observable transaction for the issuance of similar equity securities of the same issuer and we recorded an upward adjustment of $3.4 million to our equity investment based on the observable price changes. We have not recorded any impairments or downward adjustments to the carrying amounts of our equity investments as of December 31, 2021. The carrying amount of our equity investment without a readily determinable fair value was $56.7 million at December 31, 2021, and $50.0 million at December 31, 2020.

Investments in equity securities are reported in Other Assets in the accompanying Consolidated Balance Sheets. Realized and unrealized gains and losses are reported in Other Income, Net (non-operating) in the Consolidated Statements of Income and in the “Corporate and other” category of our segment information.

The following is the portion of unrealized gains recognized during the years ended December 31, 2021 and 2020, related to equity securities still held at December 31:

	2021		2020
Net gains recognized during the period on equity securities	$	10.9	$	131.5
Less: Net gains recognized during the period on equity securities sold during the period	7.5		63.4
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date	$	3.4	$	68.1

•Fixed rate long-term debt: Our fixed rate long-term debt consists primarily of amounts outstanding under our senior unsecured notes. We estimate the fair value of our senior unsecured notes using quoted prices for the

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identical liability (Level 1). A summary of the aggregate carrying values and fair values of our fixed rate long-term debt at December 31 is as follows:

	2021		2020
Carrying value	$	2,858.4	$	2,101.8
Fair value	$	3,017.8	$	2,341.1

Nonfinancial assets such as goodwill, other intangible assets, and long-lived assets held and used are measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized or for a business combination. The fair values less costs to sell of long-lived assets or disposal groups held for sale are assessed each reporting period they remain classified as held for sale. Subsequent changes in the held for sale long-lived asset’s or disposal group’s fair value less cost to sell (increase or decrease) are reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset or disposal group at the time it was initially classified as held for sale.

The following table presents assets measured and recorded at fair value on a nonrecurring basis during the years ended December 31, 2021 and 2020:

	2021				2020
Description	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)		Gain/(Loss)		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)		Gain/(Loss)
Goodwill	$	—	$	—	$	457.5	$	(318.3)
Franchise rights and other	$	—	$	—	$	26.2	$	(59.9)
Equity investment	$	53.4	$	3.4	$	—	$	—
Right-of-use assets	$	—	$	(0.1)	$	5.0	$	(3.1)
Long-lived assets held and used	$	10.4	$	(3.1)	$	1.8	$	(9.2)

Goodwill

Goodwill for our reporting units and our franchise rights assets are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may exist.

Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment for our annual testing as of April 30, 2021, and we determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts.

During the first quarter of 2020, due to the impact of the COVID-19 pandemic on our results and the decrease in our market capitalization as of March 31, 2020, we recorded goodwill impairment charges as of $318.3 million of which $257.4 million related to our Premium Luxury reporting unit, $41.6 million related to our Collision Centers reporting unit, and $19.3 million related to our Parts Centers reporting unit. The non-cash impairment charges are reflected as Goodwill Impairment in the accompanying Unaudited Condensed Consolidated Statements of Operations and in the “Corporate and other” category of our segment information.

The quantitative goodwill impairment test requires a determination of whether the fair value of a reporting unit is less than its carrying value. We estimate the fair value of our reporting units using an “income” valuation approach, which discounts projected free cash flows of the reporting unit at a computed weighted average cost of capital as the discount rate. The income valuation approach requires the use of significant estimates and assumptions, which include revenue growth rates and future operating margins used to calculate projected future cash flows, weighted average cost of capital, and

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future economic and market conditions. In connection with this process, we also reconcile the estimated aggregate fair values of our reporting units to our market capitalization, including consideration of a control premium that represents the estimated amount an investor would pay for our equity securities to obtain a controlling interest. We believe that this reconciliation process is consistent with a market participant perspective. We base our cash flow forecasts on our knowledge of the automotive industry, our recent performance, our expectations of our future performance, and other assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We also make certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of our reporting units.

For our April 30, 2020 annual impairment test, we chose to make a qualitative evaluation about the likelihood of goodwill impairment and we determined that it was not more likely than not that the fair values of these reporting units were less than their carrying amounts.

For our April 30, 2019 annual impairment test, we chose to make a qualitative evaluation about the likelihood of goodwill impairment for our Domestic, Import, and Premium Luxury reporting units, and we determined that it was not more likely than not that the fair values of these reporting units were less than their carrying amounts. We elected to perform a quantitative goodwill impairment test for our Collision Centers and Parts Centers reporting units as of April 30, 2019, and no impairment charges resulted from the impairment test.

Other Intangible Assets

Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives and are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred.

We elected to perform quantitative franchise rights impairment tests as of April 30, 2021, and no impairment charges resulted from these quantitative tests.

The quantitative impairment test for franchise rights requires the comparison of the franchise rights’ estimated fair value to carrying value by store. Fair values of rights under franchise agreements are estimated using Level 3 inputs by discounting expected future cash flows of the store. The forecasted cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates, margins, working capital requirements, capital expenditures, and cost of capital, for which we utilize certain market participant-based assumptions, using third-party industry projections, economic projections, and other marketplace data we believe to be reasonable.

During the first quarter of 2020, as a result of the impacts from the COVID-19 pandemic, we identified eight stores with franchise rights carrying values that exceeded their estimated fair values, and we recorded non-cash franchise rights impairment charges of $57.5 million during the three months ended March 31, 2020. For our April 30, 2020 annual impairment test, we elected to perform quantitative franchise rights impairment tests, and no additional impairment charges resulted from these quantitative tests.

For our April 30, 2019 annual impairment test, we elected to perform quantitative franchise rights impairment tests. As a result of these tests, we recorded non-cash impairment charges of $9.6 million in 2019 to reduce the carrying values of certain franchise rights to their estimated fair values.

The non-cash impairment charges are reflected as Franchise Rights Impairment in the accompanying Consolidated Statements of Income and in the “Corporate and other” category of our segment information.

In 2020, we also recorded non-cash impairment charges of $2.4 million to reduce the carrying value of certain finite-lived intangible assets to estimated fair value, which are included in Other (Income) Expense, Net in our Consolidated Statements of Income and in the “Corporate and other” category of our segment information.

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Long-Lived Assets and Right-of-Use Assets

Fair value measurements for our long-lived assets and right-of-use assets are based on Level 3 inputs. Changes in fair value measurements are reviewed and assessed each quarter for properties classified as held for sale, or when an indicator of impairment exists for properties classified as held and used or for right-of-use assets. The valuation process is generally based on a combination of the market and replacement cost approaches. In certain cases, fair value measurements are based on pending agreements to sell the related assets.

In a market approach, we use transaction prices for comparable properties that have recently been sold. These transaction prices are adjusted for factors related to a specific property. We evaluate changes in local real estate markets, and/or recent market interest or negotiations related to a specific property. In a replacement cost approach, the cost to replace a specific long-lived asset is considered, which is adjusted for depreciation from physical deterioration, as well as functional and economic obsolescence, if present and measurable.

To validate the fair values determined under the valuation process noted above, we also obtain independent third-party appraisals for our properties and/or third-party brokers’ opinions of value, which are generally developed using the same valuation approaches described above, and we evaluate any recent negotiations or discussions with third-party real estate brokers related to a specific long-lived asset or market. 

The non-cash impairment charges recorded in 2021 and 2020, are included in Other (Income) Expense, Net (within Operating Income) in our Consolidated Statements of Income and are reported in the “Corporate and other” category of our segment information.

We had assets held for sale in continuing operations of $53.3 million as of December 31, 2021, and $25.5 million as of December 31, 2020, primarily related to property held for sale, as well as inventory, franchise rights, goodwill, and property of disposal groups held for sale. We had assets held for sale in discontinued operations of $1.1 million as of December 31, 2021, and $8.0 million as of December 31, 2020, primarily related to property held for sale. Assets held for sale are included in Other Current Assets in our Consolidated Balance Sheets.

Quantitative Information about Level 3 Fair Value Measurements

Description	Fair Value at March 31, 2020		Valuation Technique	Unobservable Input	Range (Average)
Franchise rights	$	24.6	Discounted cash flow	Weighted average cost of capital	8.5	%
				Discount rate	11.1% - 14.3% (12.1%)
				Long-term revenue growth rate	2.0	%
				Long-term pretax income margin	0.6% - 2.8% (1.4%)
				Contributory asset charges	4.2% - 12.1% (6.2%)

20. COMMITMENTS AND CONTINGENCIES

Legal Proceedings

We are involved, and will continue to be involved, in numerous legal proceedings arising out of the conduct of our business, including litigation with customers, wage and hour and other employment-related lawsuits, and actions brought by governmental authorities. Some of these lawsuits purport or may be determined to be class or collective actions and seek substantial damages or injunctive relief, or both, and some may remain unresolved for several years. We establish accruals for specific legal proceedings when it is considered probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Our accruals for loss contingencies are reviewed quarterly and adjusted as additional information becomes available. We disclose the amount accrued if material or if such disclosure is necessary for our financial statements to not be misleading. If a loss is not both probable and reasonably estimable, or if an exposure to loss exists in excess of the amount accrued, we assess whether there is at least a reasonable possibility that a loss, or additional loss, may

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have been incurred. If there is a reasonable possibility that a loss, or additional loss, may have been incurred, we disclose the estimate of the possible loss or range of loss if it is material or a statement that such an estimate cannot be made. Our evaluation of whether a loss is reasonably possible or probable is based on our assessment and consultation with legal counsel regarding the ultimate outcome of the matter.

As of December 31, 2021 and 2020, we have accrued for the potential impact of loss contingencies that are probable and reasonably estimable, and there was no indication of a reasonable possibility that a material loss, or additional material loss, may have been incurred. We do not believe that the ultimate resolution of any of these matters will have a material adverse effect on our results of operations, financial condition, or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our results of operations, financial condition, or cash flows.

Other Matters

AutoNation, acting through its subsidiaries, is the lessee under many real estate leases that provide for the use by our subsidiaries of their respective dealership premises. Pursuant to these leases, our subsidiaries generally agree to indemnify the lessor and other related parties from certain liabilities arising as a result of the use of the leased premises, including environmental liabilities, or a breach of the lease by the lessee. Additionally, from time to time, we enter into agreements with third parties in connection with the sale of assets or businesses in which we agree to indemnify the purchaser or related parties from certain liabilities or costs arising in connection with the assets or business. Also, in the ordinary course of business in connection with purchases or sales of goods and services, we enter into agreements that may contain indemnification provisions. In the event that an indemnification claim is asserted, our liability would be limited by the terms of the applicable agreement.

From time to time, primarily in connection with dispositions of automotive stores, our subsidiaries assign or sublet to the dealership purchaser the subsidiaries’ interests in any real property leases associated with such stores. In general, our subsidiaries retain responsibility for the performance of certain obligations under such leases to the extent that the assignee or sublessee does not perform, whether such performance is required prior to or following the assignment or subletting of the lease. Additionally, AutoNation and its subsidiaries generally remain subject to the terms of any guarantees made by us in connection with such leases. We generally have indemnification rights against the assignee or sublessee in the event of non-performance under these leases, as well as certain defenses. We presently have no reason to believe that we or our subsidiaries will be called on to perform under any such remaining assigned leases or subleases. We estimate that lessee rental payment obligations during the remaining terms of these leases with expirations ranging from 2022 to 2034 are approximately $8 million at December 31, 2021. There can be no assurance that any performance of AutoNation or its subsidiaries required under these leases would not have a material adverse effect on our business, financial condition, and cash flows.

At December 31, 2021, surety bonds, letters of credit, and cash deposits totaled $104.8 million, of which $39.7 million were letters of credit. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance. We do not currently provide cash collateral for outstanding letters of credit.

In the ordinary course of business, we are subject to numerous laws and regulations, including automotive, environmental, health and safety, and other laws and regulations. We do not anticipate that the costs of such compliance will have a material adverse effect on our business, results of operations, cash flows, or financial condition, although such outcome is possible given the nature of our operations and the extensive legal and regulatory framework applicable to our business. We do not have any material known environmental commitments or contingencies.

21. BUSINESS AND CREDIT CONCENTRATIONS

We own and operate franchised automotive stores in the United States pursuant to franchise agreements with vehicle manufacturers. In 2021, approximately 65% of our total revenue was generated by our stores in Florida, Texas, and California. Franchise agreements generally provide the manufacturers or distributors with considerable influence over the

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operations of the store. The success of any franchised automotive dealership is dependent, to a large extent, on the financial condition, management, marketing, production, and distribution capabilities of the vehicle manufacturers or distributors of which we hold franchises. We had receivables from manufacturers or distributors of $148.4 million at December 31, 2021, and $210.0 million at December 31, 2020. Additionally, a large portion of our Contracts-in-Transit included in Receivables, net, in the accompanying Consolidated Balance Sheets, are due from automotive manufacturers’ captive finance subsidiaries which provide financing directly to our new and used vehicle customers.

We purchase substantially all of our new vehicles from various manufacturers or distributors at the prevailing prices available to all franchised dealers. Additionally, we finance our new vehicle inventory primarily with automotive manufacturers’ captive finance subsidiaries. Our sales volume could be adversely impacted by the manufacturers’ or distributors’ inability to supply the stores with an adequate supply of vehicles and related financing.

We are subject to a concentration of risk in the event of financial distress of or other adverse event related to a major vehicle manufacturer or related lender or supplier. The core brands of vehicles that we sell, representing approximately 90% of the new vehicles that we sold in 2021, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, Stellantis, Mercedes-Benz, BMW, and Volkswagen (including Audi and Porsche). Our business could be materially adversely impacted by a bankruptcy of or other adverse event related to a major vehicle manufacturer or related lender or supplier.

Concentrations of credit risk with respect to non-manufacturer trade receivables are limited due to the wide variety of customers and markets in which our products are sold as well as their dispersion across many different geographic areas in the United States. Consequently, at December 31, 2021, we do not consider AutoNation to have any significant non-manufacturer concentrations of credit risk.

22. SEGMENT INFORMATION

At December 31, 2021, 2020, and 2019, we had three reportable segments: (1) Domestic, (2) Import, and (3) Premium Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford, and Stellantis. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, Subaru, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, Audi, Lexus, and Jaguar Land Rover. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products.

“Corporate and other” is comprised of our other businesses, including collision centers, auction operations, AutoNation USA used vehicle stores, and parts distribution centers, all of which generate revenues but do not meet the quantitative thresholds for reportable segments, as well as unallocated corporate overhead expenses and other income items.

The reportable segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by our chief operating decision maker to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer.

The following tables provide information on revenues from external customers, segment income of our reportable segments, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures.

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	Year Ended December 31, 2021
	Domestic		Import		Premium Luxury		Corporate and other		Total
Revenues from external customers	$	7,959.9	$	7,798.5	$	9,229.9	$	855.7	$	25,844.0
Floorplan interest expense	$	7.9	$	5.1	$	8.8	$	3.9	$	25.7
Depreciation and amortization	$	39.3	$	33.9	$	64.8	$	55.3	$	193.3
Segment income (loss)(1)	$	595.8	$	714.7	$	837.4	$	(270.8)	$	1,877.1
Capital expenditures	$	15.5	$	27.1	$	80.0	$	109.3	$	231.9
Segment assets	$	1,758.5	$	1,424.2	$	2,668.6	$	3,092.3	$	8,943.6

	Year Ended December 31, 2020
	Domestic		Import		Premium Luxury		Corporate and other		Total
Revenues from external customers	$	6,490.6	$	5,988.0	$	7,202.8	$	708.6	$	20,390.0
Floorplan interest expense	$	23.8	$	12.9	$	21.8	$	5.3	$	63.8
Depreciation and amortization	$	39.8	$	33.6	$	60.5	$	65.0	$	198.9
Segment income (loss)(1)	$	355.2	$	386.4	$	478.2	$	(720.4)	$	499.4
Capital expenditures	$	17.9	$	25.7	$	51.6	$	42.0	$	137.2
Segment assets	$	2,130.0	$	1,764.7	$	2,752.5	$	3,240.0	$	9,887.2

	Year Ended December 31, 2019
	Domestic		Import		Premium Luxury		Corporate and other		Total
Revenues from external customers	$	6,671.4	$	6,468.7	$	7,434.8	$	760.8	$	21,335.7
Floorplan interest expense	$	51.8	$	30.7	$	47.3	$	8.6	$	138.4
Depreciation and amortization	$	37.2	$	33.4	$	53.5	$	56.4	$	180.5
Segment income (loss)(1)	$	257.6	$	318.6	$	381.1	$	(272.1)	$	685.2
Capital expenditures	$	38.6	$	23.2	$	145.3	$	50.3	$	257.4
Segment assets	$	2,483.6	$	1,842.1	$	3,150.5	$	3,067.1	$	10,543.3
(1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.

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The following is a reconciliation of the total of the reportable segments’ revenue and segment income to our consolidated revenue and income from continuing operations before income taxes, respectively.

	Years Ended December 31,
	2021		2020		2019
Total external revenues for reportable segments	$	24,988.3	$	19,681.4	$	20,574.9
Corporate and other revenues	855.7		708.6		760.8
Total consolidated revenues	$	25,844.0	$	20,390.0	$	21,335.7

	Years Ended December 31,
	2021		2020		2019
Total segment income for reportable segments	$	2,147.9	$	1,219.8	$	957.3
Corporate and other	(270.8)		(720.4)		(272.1)
Other interest expense	(93.0)		(93.7)		(106.7)
Other income, net	24.3		144.4		34.1
Income from continuing operations before income taxes	$	1,808.4	$	550.1	$	612.6

23. MULTIEMPLOYER PENSION PLANS

Five of our 247 stores participate in multiemployer pension plans. We contribute to these multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects:

a.    Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.

b.    If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be assumed by the remaining participating employers.

c.    If we choose to stop participating in a multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan, subject to certain limits, referred to as a withdrawal liability.

Both of the multiemployer pension plans in which we participate are designated as being in “red zone” status, as defined by the Pension Protection Act (PPA) of 2006. Our participation in these plans for the year ended December 31, 2021, is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (EIN) and the three-digit plan number. The most recent PPA zone status available in 2021 and 2020 is based on information that we received from the plans and is certified by each plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The last column lists the expiration date of the collective-bargaining

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AUTONATION, INC.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Continued)

agreements to which the plans are subject. A rehabilitation plan has been implemented for each plan. There have been no significant changes that affect the comparability of 2021, 2020, and 2019 contributions.

		Pension Protection Act Zone Status		Contributions of AutoNation ($ in millions) (1)							Expiration Date of Collective-Bargaining Agreement
Pension Fund	EIN/Pension PlanNumber	2021	2020	2021		2020		2019		Surcharge Imposed (2)
Automotive Industries Pension Plan	94-1133245 - 001	Red	Red	$	1.2	$	1.4	$	1.6	Yes	(3)
IAM National Pension Fund	51-6031295- 002	Red	Red	0.2		0.2		0.2		Yes	(4)
Other funds				0.1		0.1		0.1
Total contributions				$	1.5	$	1.7	$	1.9

(1)    Our stores were not listed in the Automotive Industries Pension Plan’s or IAM National Pension Fund’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2020 or 2019.

(2)    We paid surcharges to the Automotive Industries Pension Plan of $0.5 million, $0.6 million, and $0.8 million in 2021, 2020, and 2019 respectively. Surcharges to the IAM National Pension Fund were de minimis.

(3)    We are party to three collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. One agreement has an expiration date of December 31, 2022, and one agreement has an expiration date of May 31, 2024. One agreement expired on December 31, 2021, and is currently extended during collective bargaining for a new agreement.

(4)    We are party to two collective-bargaining agreements that require contributions to the IAM National Pension Fund. Both agreements have an expiration date of August 30, 2023.

In the event that we cease participating in these plans, we could be assessed withdrawal liabilities, which we estimate are approximately $16 million for the Automotive Industries Pension Plan and approximately $4 million for the IAM National Pension Fund.

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ITEM 9.   CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE

None.

ITEM 9A.   CONTROLS AND PROCEDURES

Evaluation of Disclosure Controls and Procedures

Our management, with the participation of our Chief Executive Officer and Chief Financial Officer, evaluated the effectiveness of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) as of the end of the period covered by this Annual Report on Form 10-K. Based on that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this Annual Report on Form 10-K.

Management’s Annual Report on Internal Control Over Financial Reporting

Our management is responsible for establishing and maintaining adequate internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act). Management conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based on this evaluation, our management concluded that our internal control over financial reporting was effective as of December 31, 2021. Our independent registered public accounting firm, KPMG LLP, also concluded that we maintained effective internal control over financial reporting as set forth in its Report of Independent Registered Public Accounting Firm which is included in Part II, Item 8 of this Form 10-K.

As permitted by the Securities and Exchange Commission, management elected to exclude the stores and collision centers that we acquired in the third and fourth quarters of 2021 from its assessment of internal control over financial reporting as of December 31, 2021, as there was not an adequate amount of time between the acquisition dates and the date of management’s assessment. The total assets and total revenues of these acquired stores and collision centers included in our consolidated financial statements as of and for the year ended December 31, 2021, represented less than 6.7% of our total consolidated assets and less than 0.7% of our total consolidated revenue.

Changes in Internal Control over Financial Reporting

There were no changes in our internal control over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) identified in connection with the evaluation required by paragraph (d) of Rule 13a-15 or 15d-15 under the Exchange Act that occurred during the fourth quarter of 2021 that has materially affected, or is reasonably likely to materially affect, our internal control over financial reporting.

ITEM 9B.   OTHER INFORMATION

None.

ITEM 9C.   DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

Not applicable.

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PART III

ITEM 10.   DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE

The information under the heading “Information about our Executive Officers” in Part I, Item 1 of this Form 10-K is incorporated by reference in this section.

We have adopted a Code of Business Ethics applicable to all employees. In addition, we have adopted a Code of Ethics for Senior Officers applicable to our principal executive officer, principal financial officer, principal accounting officer, and other senior officers and a Code of Ethics for Directors applicable to our directors. These codes are available on our Investor Relations website at investors.autonation.com. In the event that we amend or waive any of the provisions of the Code of Ethics for Senior Officers that relate to any element of the code of ethics definition enumerated in Item 406(b) of Regulation S-K, we intend to disclose the same on our Investor Relations website.

The other information required by this item is incorporated by reference to AutoNation’s Proxy Statement for its 2022 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2021.

ITEM 11.   EXECUTIVE COMPENSATION

The information required by this item is incorporated by reference to AutoNation’s Proxy Statement for its 2022 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2021.

ITEM 12.   SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

Equity Compensation Plans

The following table provides information as of December 31, 2021 regarding our equity compensation plans:

EQUITY COMPENSATION PLANS
	(A)		(B)	(C)
Plan Category	Number of Securities to be Issued Upon Exercise     of Outstanding Options,      Warrants and Rights		Weighted-Average Exercise Price of     Outstanding Options,      Warrants and Rights	Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in Column A)
Equity Compensation Plans Approved by Security Holders	1,922,125	(1)	$50.01(2)	2,667,548	(3)
Equity Compensation Plans Not Approved by Security Holders	—		—	—
Total	1,922,125	(1)	$50.01(2)	2,667,548	(3)

(1)    Includes 1,656,446 shares granted under the AutoNation, Inc. 2017 Employee Equity and Incentive Plan (the “2017 Plan”) and 135,659 shares granted under the AutoNation, Inc. 2014 Non-Employee Director Equity Plan (the “2014 Plan”) that are issuable upon settlement of outstanding restricted stock units (“RSUs”). The remaining balance consists of outstanding stock option awards.

(2)    The weighted average exercise price does not take into account the shares issuable upon settlement of outstanding RSUs, which have no exercise price.

(3)    Includes 2,403,693 shares available under the 2017 Plan and 263,855 shares available under the 2014 Plan.

The other information required by this item is incorporated by reference to AutoNation’s Proxy Statement for its 2022 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2021.

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ITEM 13.   CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

The information required by this item is incorporated by reference to AutoNation’s Proxy Statement for its 2022 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2021.

ITEM 14.   PRINCIPAL ACCOUNTING FEES AND SERVICES

The information required by this item is incorporated by reference to AutoNation’s Proxy Statement for its 2022 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2021.

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PART IV

ITEM 15.   EXHIBITS, FINANCIAL STATEMENT SCHEDULES

1.Financial Statements: The Consolidated Financial Statements of AutoNation are set forth in Part II, Item 8 of this Form 10-K.

2.Financial Statement Schedules: Not applicable.

3.Exhibits: The exhibits listed in the accompanying Exhibit Index are filed, furnished or incorporated by reference as part of this Form 10-K.

Certain of the agreements listed as exhibits to this Form 10-K (including the exhibits to such agreements), which have been filed to provide investors with information regarding their terms, contain various representations, warranties, and covenants of AutoNation, Inc. and the other parties thereto. They are not intended to provide factual information about any of the parties thereto or any subsidiaries of the parties thereto. The assertions embodied in those representations, warranties, and covenants were made for purposes of each of the agreements, solely for the benefit of the parties thereto. In addition, certain representations and warranties were made as of a specific date, may be subject to a contractual standard of materiality different from what a security holder might view as material, or may have been made for purposes of allocating contractual risk among the parties rather than establishing matters as facts. Investors should not view the representations, warranties, and covenants in the agreements (or any description thereof) as disclosures with respect to the actual state of facts concerning the business, operations, or condition of any of the parties to the agreements (or their subsidiaries) and should not rely on them as such. In addition, information in any such representations, warranties, or covenants may change after the dates covered by such provisions, which subsequent information may or may not be fully reflected in the public disclosures of the parties. In any event, investors should read the agreements together with the other information concerning AutoNation, Inc. contained in reports and statements that we file with the SEC.

ITEM 16.   FORM 10-K SUMMARY

None.

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SIGNATURES

Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AUTONATION, INC.
(Registrant)
By:	/S/ MICHAEL MANLEY
	Michael Manley Chief Executive Officer and Director
	February 17, 2022

Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

Signature	Title	Date
/S/ MICHAEL MANLEY	Chief Executive Officer and Director	February 17, 2022
Michael Manley	(Principal Executive Officer)
/S/ JOSEPH T. LOWER	Executive Vice President and Chief	February 17, 2022
Joseph T. Lower	Financial Officer (Principal Financial Officer)
/S/ CHRISTOPHER CADE	Senior Vice President and Chief Accounting	February 17, 2022
Christopher Cade	Officer (Principal Accounting Officer)
/S/ RICK L. BURDICK	Director	February 17, 2022
Rick L. Burdick
/S/ DAVID B. EDELSON	Director	February 17, 2022
David B. Edelson
/S/ STEVEN L. GERARD	Director	February 17, 2022
Steven L. Gerard
/S/ ROBERT R. GRUSKY	Director	February 17, 2022
Robert R. Grusky
/S/ NORMAN K. JENKINS	Director	February 17, 2022
Norman K. Jenkins
/S/ LISA LUTOFF-PERLO	Director	February 17, 2022
Lisa Lutoff-Perlo
/S/ G. MIKE MIKAN	Director	February 17, 2022
G. Mike Mikan
/S/ JACQUELINE A. TRAVISANO	Director	February 17, 2022
Jacqueline A. Travisano

105

EXHIBIT INDEX

Exhibit Number	Exhibit Description	Incorporated by Reference
		Form	File Number	Exhibit	Filing Date
3.1	Third Amended and Restated Certificate of Incorporation of AutoNation, Inc.	10-Q	001-13107	3.1	8/13/99
3.2	Amended and Restated By-Laws of AutoNation, Inc.	8-K	001-13107	3.1	11/18/21
4.1	Indenture, dated April 14, 2010 (the “2010 Indenture”), among AutoNation, Inc. and Wells Fargo Bank, National Association.	8-K	001-13107	4.1	4/15/10
4.2	Supplemental Indenture to 2010 Indenture, dated September 21, 2015, relating to the Company’s 4.5% Senior Notes due 2025.	8-K	001-13107	4.3	9/21/15
4.3	Form of 4.5% Senior Notes due 2025 (included in Exhibit 4.2).	8-K	001-13107	4.3	9/21/15
4.4	Supplemental Indenture to 2010 Indenture, dated February 29, 2016, relating to the Company’s 4.5% Senior Notes due 2025.	10-Q	001-13107	4.4	4/22/16
4.5	Supplemental Indenture to 2010 Indenture, dated July 29, 2016, relating to the Company’s 4.5% Senior Notes due 2025.	10-Q	001-13107	4.4	10/28/16
4.6	Supplemental Indenture to 2010 Indenture, dated August 3, 2017, relating to the Company’s 4.5% Senior Notes due 2025.	10-Q	001-13107	4.4	11/2/17
4.7	Supplemental Indenture to 2010 Indenture, dated November 10, 2017, relating to the Company’s 3.5% Senior Notes due 2024.	8-K	001-13107	4.2	11/13/17
4.8	Form of 3.5% Senior Notes due 2024 (included in Exhibit 4.7).	8-K	001-13107	4.3	11/13/17
4.9	Supplemental Indenture to 2010 Indenture, dated November 10, 2017, relating to the Company’s 3.8% Senior Notes due 2027.	8-K	001-13107	4.4	11/13/17
4.10	Form of 3.8% Senior Notes due 2027 (included in Exhibit 4.9).	8-K	001-13107	4.5	11/13/17
4.11	Supplemental Indenture to 2010 Indenture, dated May 22, 2020, relating to the Company’s 4.75% Senior Notes due 2030.	8-K	001-13107	4.2	5/22/20
4.12	Form of 4.75% Senior Notes due 2030 (included in Exhibit 4.11).	8-K	001-13107	4.2	5/22/20
4.13	Supplemental Indenture to 2010 Indenture, dated July 29, 2021, relating to the Company’s 1.95% Senior Notes due 2028 and 2.4% Senior Notes due 2031.	8-K	001-13107	4.2	7/29/21
4.14	Form of 1.95% Senior Notes due 2028 (included in Exhibit 4.13).	8-K	001-13107	4.2	7/29/21
4.15	Form of 2.4% Senior Notes due 2031 (included in Exhibit 4.13).	8-K	001-13107	4.2	7/29/21
4.16*	Description of Registrant’s Securities.
10.1	AutoNation, Inc. Deferred Compensation Plan, as amended and restated.	10-Q	001-13107	10.1	4/22/21
10.2	AutoNation, Inc. 2007 Non-Employee Director Stock Option Plan.	10-K	001-13107	10.17	2/28/07
10.3	Amendment to the AutoNation, Inc. 2007 Non-Employee Director Stock Option Plan, effective as of October 26, 2010.	10-Q	001-13107	10.4	10/28/10

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EXHIBIT INDEX

Exhibit Number	Exhibit Description	Incorporated by Reference
		Form	File Number	Exhibit	Filing Date
10.4	Amendment to the AutoNation, Inc. 2007 Non-Employee Director Stock Option Plan, effective as of February 1, 2012.	8-K	001-13107	10.2	2/2/12
10.5	AutoNation, Inc. 2014 Non-Employee Director Equity Plan (the “2014 Director Plan”).	10-Q	001-13107	10.6	4/18/14
10.6	Terms of Non-Employee Director Restricted Stock Units granted under the 2014 Director Plan.	10-Q	001-13107	10.2	7/17/14
10.7	Amendment to the 2014 Director Plan, effective as of January 31, 2017.	10-Q	001-13107	10.1	4/25/17
10.8	AutoNation, Inc. 2008 Employee Equity and Incentive Plan (the “2008 Plan”).	10-Q	001-13107	10.1	4/25/08
10.9	Form of Stock Option Agreement under the 2008 Plan (for grants made in 2009-2013).	10-Q	001-13107	10.4	4/24/09
10.10	Form of Stock Option Agreement under the 2008 Plan (for grants made in 2014).	8-K	001-13107	10.1	3/7/14
10.11	Form of Stock Option Agreement under the 2008 Plan for grants in 2015.	10-Q	001-13107	10.4	4/22/15
10.12	Form of Stock Option Agreement under the 2008 Plan for grants in 2016.	10-Q	001-13107	10.1	4/22/16
10.13	AutoNation, Inc. Policy Regarding Recoupment of Certain Incentive Compensation.	8-K	001-13107	10.1	2/6/15
10.14	AutoNation, Inc. 2017 Employee Equity and Incentive Plan (the “2017 Plan”).	8-K	001-13107	10.1	4/21/17
10.15	Form of AutoNation, Inc. Restricted Stock Unit Award Agreement under the 2017 Plan for grants prior to November 2021.	10-Q	001-13107	10.3	8/2/17
10.16*	Form of AutoNation, Inc. Restricted Stock Unit Award Agreement under the 2017 Plan for grants since November 2021.
10.17	Form of AutoNation, Inc. Stock Unit Awards Agreement under the 2017 Plan.	10-Q	001-13107	10.1	5/1/18
10.18*	Form of AutoNation, Inc. Retention Restricted Stock Unit Award Agreement.
10.19	AutoNation, Inc. Executive Severance Plan, adopted as of April 18, 2018.	10-Q	001-13107	10.2	5/1/18
10.20	Restricted Stock Unit Award Agreement, dated as of January 13, 2020, by and between AutoNation, Inc. and Joseph T. Lower.	10-K	001-13107	10.37	2/18/20
10.21	Separation Agreement and General Release of All Claims, dated July 14, 2020, by and between AutoNation, Inc. and Cheryl Miller.	8-K	001-13107	10.2	7/14/20
10.22	Amended and Restated Employment Agreement, dated July 14, 2020, by and between AutoNation, Inc. and Michael J. Jackson.	8-K	001-13107	10.1	7/14/20
10.23	Employment Agreement, dated as of September 9, 2021, by and between AutoNation, Inc. and Michael Manley.	8-K	001-13107	10.1	9/21/21
10.24*	Retirement and General Release Agreement, dated as of November 1, 2021, by and between Michael J. Jackson and AutoNation, Inc.
10.25	Third Amended and Restated Credit Agreement, dated March 26, 2020, by and among the Company, JPMorgan Chase Bank, N.A. as Administrative Agent, and the other parties thereto.	8-K	001-13107	10.1	3/26/20

107

EXHIBIT INDEX

Exhibit Number	Exhibit Description	Incorporated by Reference
		Form	File Number	Exhibit	Filing Date
10.26	Form of Commercial Paper Dealer Agreement between AutoNation, Inc., as Issuer, and the Dealer party thereto.	8-K	001-13107	10.2	3/26/20
21.1*	Subsidiaries of AutoNation, Inc.
23.1*	Consent of KPMG LLP.
31.1*	Certification of Principal Executive Officer Pursuant to Rule 13a-14(a) of the Exchange Act.
31.2*	Certification of Principal Financial Officer Pursuant to Rule 13a-14(a) of the Exchange Act.
32.1**	Certification of Principal Executive Officer Pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350.
32.2**	Certification of Principal Financial Officer Pursuant to Rule 13a-14(b) of the Exchange Act and 18 U.S.C. Section 1350.
101.INS*	XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH*	XBRL Taxonomy Extension Schema Document
101.CAL*	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF*	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB*	XBRL Taxonomy Extension Label Linkbase Document
101.PRE*	XBRL Taxonomy Extension Presentation Linkbase Document
104*	Cover Page Interactive Data File - the cover page XBRL tags are embedded within the Inline XBRL document.

*    Filed herewith

**    Furnished herewith

Exhibits 10.1 through 10.24 are management contracts or compensatory plans, contracts, or arrangements.

In accordance with Item 601(b)(4)(iii)(A) of Regulation S-K, copies of certain instruments defining the rights of holders of long-term debt of the Company or its subsidiaries are not filed herewith. We hereby agree to furnish a copy of any such instrument to the Commission upon request.

108

EX-4.16

Exhibit 4.16

DESCRIPTION OF THE REGISTRANT’S SECURITIES

REGISTERED PURSUANT TO SECTION 12 OF THE SECURITIES

EXCHANGE ACT OF 1934

As of December 31, 2021, AutoNation, Inc. had one class of securities registered under Section 12 of the Securities Exchange Act of 1934, as amended: our common stock.

The following description of our common stock is based on our Third Amended and Restated Certificate of Incorporation, as amended (our “Certificate of Incorporation”), our Amended and Restated By-Laws (our “By-Laws”), and applicable provisions of law. We have summarized certain portions of our Certificate of Incorporation and By-Laws below. The summary is not complete and is subject to, and is qualified in its entirety by, our Certificate of Incorporation and our By-Laws, each of which is filed as an exhibit to the Annual Report on Form 10-K, and the applicable provisions of the Delaware General Corporation Law (“DGCL”). You should read our Certificate of Incorporation, By-Laws, and the applicable provisions of the DGCL for additional information.

As used in this Exhibit, the terms “our,” “us,” “we,” “AutoNation” and the “Company” refer only to AutoNation, Inc., a Delaware corporation, and not to any of its subsidiaries.

Authorized Shares

Under our Certificate of Incorporation, our authorized common stock consists of 1,500,000,000 shares of common stock, par value $0.01 per share.

Voting Rights

Each holder of shares of our common stock is entitled to one vote for each share held of record on the applicable record date on all matters submitted to a vote of stockholders. Our common stock does not have cumulative voting rights.

Dividends

Subject to the requirements of law and the provisions of our Certificate of Incorporation, holders of our common stock are entitled to receive dividends as may be declared from time to time by our Board of Directors (“Board”).

Liquidation/Dissolution Rights

Upon any liquidation or dissolution of AutoNation, holders of our common stock are entitled to share pro rata in all remaining assets available for distribution to stockholders after payment or providing for our liabilities and the liquidation preference of any outstanding preferred stock.

Other Rights

Holders of our common stock have no preemptive right to purchase, subscribe for, or otherwise acquire any unissued or treasury shares or other securities. Our common stock has no sinking fund, redemption provisions, or conversion or exchange rights.

Certain Anti-Takeover Provisions of Our Certificate of Incorporation and By-Laws and the DGCL

Certain provisions in our Certificate of Incorporation and By-Laws and the DGCL may have the effect of delaying, deferring or discouraging another party from acquiring us. These provisions, which are summarized below, are expected to discourage coercive takeover practices and inadequate takeover bids. These provisions are also designed to encourage persons seeking to acquire control of us to first negotiate with our Board.

Preferred Stock

Our Certificate of Incorporation authorizes our Board to issue preferred stock in one or more series from time to time. Our Board is authorized to provide that any such series of preferred stock may be (i) entitled to voting powers, full or limited, or may be without voting powers; (ii) subject to redemption at such time or times and at such price or prices as our Board may establish; (iii) entitled to receive dividends (which may be cumulative or non-cumulative) at such rate or rates, on such conditions, and at such times, and payable in preference to, or in such relation to, the dividends payable on any other class or classes or any other series of stock as our Board may establish; (iv) entitled to such rights upon the dissolution of, or upon any distribution of the assets of, the Company, as our Board may establish; (v) convertible into, or exchangeable for, shares of any other class or classes of stock, or of any other series of the same or any other class or classes of stock, of the Company at such price or prices or at such rates of exchange and with such adjustments as our Board may establish; and (vi) entitled to such other relative, participating, optional or special rights, qualifications, limitations or restrictions as our Board may establish. Under our Certificate of Incorporation, our authorized preferred stock consists of 5,000,000 shares of preferred stock, par value $0.01 per share. Issuance of preferred stock in the future could discourage bids for the common stock at a premium as well as create a depressive effect on the market price of the common stock.

Advance Notice of Stockholder Proposals or Nominations

Our By-Laws provide that stockholders at an annual meeting may only consider proposals or nominations (i) specified in the notice of meeting given by or at the direction of the Board, (ii) properly brought before the meeting by or at the direction of the Board or (iii) otherwise properly brought before the meeting by a stockholder who was a stockholder of record on (a) the date of the giving of timely notice to our Corporate Secretary and (b) the record date for the meeting, who is entitled to vote at the meeting and who has given to our Corporate Secretary timely written notice, in proper form. In addition to certain other applicable requirements, for business to be properly brought before an annual meeting by a stockholder, such stockholder generally must have given notice thereof in proper written form to our Corporate Secretary not less than 90 days nor more than 120 days prior to the anniversary date of the immediately preceding annual meeting of stockholders. Our By-Laws may have the effect of precluding the conduct of certain business at a meeting if the proper procedures are not followed or may discourage or defer a potential acquiror from conducting a solicitation of proxies to elect its own slate of directors or otherwise attempting to obtain control of us.

Proxy Access

Our By-Laws permit a stockholder (or a group of up to 20 stockholders) owning three percent (3%) or more of our common stock continuously for at least three years to nominate and include in our proxy statement candidates for up to 20% of our Board (rounded down, but not less than two). To be timely, a notice of a nomination under our proxy access bylaw provisions must be delivered to or mailed and received at the principal executive offices of the Company not less than one-hundred twenty (120) days nor more than one-hundred fifty (150) days prior to the anniversary of the date that the Company first distributed its proxy statement to stockholders for the immediately preceding annual meeting of stockholders.The notice must contain certain information specified in our bylaws.

Special Meetings of Stockholders

Our By-Laws, subject to the requirements set forth therein, provide that a special meeting of stockholders may be called (i) for any purpose or purposes by or at the direction of the Board or (ii) by or at the direction of the Board upon the written request of one or more record holders of shares of our common stock representing not less than twenty-five percent (25%) of our then issued and outstanding shares of common stock. Under our By-Laws, our stockholders are permitted to act by written consent in lieu of a meeting.

Delaware General Corporation Law

Since we are a Delaware corporation, we are subject to certain anti-takeover provisions of the DGCL. Subject to certain exceptions, Section 203 of the DGCL prevents a publicly held Delaware corporation from engaging in a “business combination” with any “interested stockholder” for three years following the date that the person became an interested

2

stockholder, unless the interested stockholder attained such status with the approval of our Board or unless the business combination is approved in a prescribed manner. A “business combination” includes, among other things, a merger or consolidation involving us and the “interested stockholder” and the sale of more than 10% of our assets. In general, an “interested stockholder” is any entity or person beneficially owning 15% or more of our outstanding voting stock and any entity or person affiliated with or controlling or controlled by such entity or person. Section 203 makes it more difficult for an interested stockholder to effect various business combinations with a corporation for a three-year period. This statute could prohibit or delay mergers or other takeover or change in control attempts not approved in advance by our Board and as a result could discourage attempts to acquire us, which could depress the market price of our common stock.

Listing

Our common stock is listed on the NYSE under the trading symbol “AN.”

3

EX-10.16

Exhibit 10.16

FORM OF AUTONATION, INC.

RESTRICTED STOCK UNIT AWARD AGREEMENT

THIS RESTRICTED STOCK UNIT AWARD AGREEMENT(this “Agreement”) is entered into as of ____________ (the “Date of Grant”), by and between the Company and __________ (the “Participant”) who accepts the Award of Restricted Stock Units (the “RSUs”) made hereby, and agrees to be bound by this Agreement.

RECITALS

A.The Company has established the AutoNation, Inc. 2017 Employee Equity and Incentive Plan (the “Plan”) in order to provide valued employees of the Company incentives to create and maintain long-term stockholder value; and

B.The Compensation Committee of the Board of Directors of the Company has approved the grant to the Participant of RSUs on the terms and conditions set forth in this Agreement.

TERMS OF AGREEMENT

NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereby agree as follows:

1.Definitions and Schedules. All capitalized terms used but not defined in this Agreement shall have the meanings given to them in the Plan. In addition, terms in respect of this Award that are not addressed in this Agreement shall be set forth on Schedule 1 attached hereto.

2.Award of RSUs Pursuant to Plan. Subject to the terms and conditions, including the restrictions and risk of forfeiture, set forth herein and in the Plan, the Participant is hereby granted under the Plan, as of the Date of Grant, an Award of RSUs, the number of which is set forth for the Participant on the Schedule attached hereto.

3.Number of Shares. The Company will establish a bookkeeping account to reflect the number of shares of Stock that are subject to the Participant’s Award. The Participant shall not be deemed to be the holder of, or to have any of the rights of a stockholder with respect to, any shares of Stock subject to the Participant’s Award unless and until the shares have been delivered in accordance with Section 7 of this Agreement.

4.Vesting. Except as otherwise provided in Section 5 of this Agreement or in the Plan, the RSUs shall become vested on the applicable vesting date set forth on Schedule 1, subject to the Participant’s continued employment with the Company, its Subsidiaries, or its Affiliates, through such vesting date.

5.Termination of Employment. Except as set forth in this Section 5 or as may otherwise be provided in a written employment agreement with the Participant (if applicable), upon the Participant’s termination of employment for any reason, any RSUs that have not become vested in accordance with Schedule 1 shall be immediately forfeited. Notwithstanding the foregoing, the following provisions shall apply to the Award:

(a)Termination of Employment for Cause. Upon the termination of the Participant’s employment for Cause by the Company, its Subsidiaries or its Affiliates, this Agreement shall terminate and all rights of the Participant with respect to all RSUs that have not been settled shall immediately terminate. The RSUs shall be forfeited without payment of any consideration, and neither the Participant nor any of the Participant’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such RSUs.

(b)Qualifying Termination of Employment.

(i)Death. Upon the termination of the Participant’s employment with the Company, its Subsidiaries or its Affiliates thereof on account of death, the Participant shall immediately vest in full in the RSUs.

(ii)Disability and Retirement. Upon the termination of the Participant’s employment with the Company, its Subsidiaries or its Affiliates thereof (i) due to Disability or (ii) by the Participant due to Retirement, the Participant shall continue to vest (as if the Participant’s employment had not been terminated) in the RSUs as set forth on Schedule 1 and the immediately following sentence. The RSUs shall continue to vest only if the Participant fully complies with any non-compete, non-disparagement, confidentiality and other restrictive covenants set forth in any agreement entered into between the Participant and the Company or its Subsidiaries or its Affiliates from time to time (including, but not limited to any Restrictive Covenants and Confidentiality Agreement entered into between the Participant and the Company) determined, notwithstanding the time periods set forth therein, as if all such restrictive covenants applied at all times while the Award is outstanding. The Board shall determine whether the Participant has complied with such restrictive covenants. Any portion of the RSUs that does not vest in accordance with the foregoing shall automatically be forfeited.

6.Dividend Equivalents. On each date on which a dividend is paid with respect to shares of Stock, dividend equivalents shall be credited hereunder in respect of the shares subject to the Award. Such dividend equivalents shall be credited as a number of additional RSUs equal to (i) the aggregate amount or value of the dividends paid with respect to that number of shares equal to the number of shares subject to such Award on the record date of such dividend, divided by (ii) the Fair Market Value per share on the payment date for such dividend. Such additional RSUs shall be subject to all the terms and conditions of this Agreement and shall vest at the same time that the related Award vests, and the shares subject to such additional RSUs shall be distributed only upon the distribution of the underlying shares with respect to which the dividend equivalents were granted.

7.Payment. The Company shall deliver to the Participant either, in its sole and absolute discretion (a) a number of shares of Stock equal to the number of vested shares subject to the RSU Award, including dividend equivalents credited with respect to such shares, or (b) an amount of cash equal to the Fair Market Value of such shares on the date of the distribution, in either case, on or as soon as administratively practical following the date of vesting of the applicable portion of the total RSUs pursuant to the terms hereof (and in all events within thirty (30) days of the vesting date).

8.Participant Bound by Terms of Plan. The Participant hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms, conditions and provisions thereof.

9.Withholding. The Participant must satisfy any tax or other applicable withholding by having the Company withhold shares of Stock otherwise issuable hereunder.

10.Governing Law. This Agreement shall be administered, interpreted and enforced under the internal laws of the State of Delaware without regard to conflicts of laws thereof.

11.Severability. The invalidity or enforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

12.Notices. All notices, requests, demands, claims and other communications by the Participant with respect to this Award shall be in writing and shall be deemed given if delivered by certified or registered mail (first class postage prepaid), guaranteed overnight delivery or facsimile transmission if such transmission is confirmed by

delivery by certified or registered mail (first class postage prepaid) or guaranteed overnight delivery, to the following address (or to such other addresses or telecopy numbers which the Company shall designate in writing to the Participant from time to time):

AutoNation, Inc.

200 SW 1st Avenue, Suite 1400

Fort Lauderdale, Florida 33301

Attention: Human Resources

Telecopy: (954) 769-xxxx

with a copy to:

AutoNation, Inc.

200 SW 1st Avenue, Suite 1600

Fort Lauderdale, Florida 33301

Attention: General Counsel

Telecopy: (954) 769-xxxx

13.Binding Effect. This Agreement shall not constitute a binding obligation of the Company or the Participant unless it is accepted by the Participant by _______. Subject to the limitations stated above and in the Plan, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company and to the Participant’s heirs, legatees, distributees and personal representatives. No handmarked or interlineated modifications shall constitute a part of this Agreement.

14.Conflict with Terms of the Plan. This Award is subject to the terms of the Plan, which provisions are hereby incorporated herein as if fully set forth herein. In the event that any provision of this Agreement conflicts with any provision of the Plan and cannot reasonably be interpreted to be a clarification of such provision of the Plan or an exercise of the authority granted to the Plan’s administrator pursuant to the Plan, the provision of the Plan shall govern and be controlling.

15.409A. This Agreement is intended to be exempt from, or to the extent subject thereto, comply with, the requirements of Section 409A of the Code, and shall in all respects be administered and interpreted in accordance with such intent. Notwithstanding anything to the contrary in this Agreement, to the extent necessary to avoid the imposition of any individual penalty tax and late interest charges imposed under Section 409A of the Code, such payment shall instead be made on the first business day after the date that is six (6) months following such separation from service (or upon the Participant’s death, if earlier).

16.Integration. This Agreement supersedes all prior agreements and understandings between the Participant and the Company, its Subsidiaries and its Affiliates relating to the grant of this Award, whether oral or otherwise; provided, however that this Agreement shall not supersede any agreement (including any employment agreement) with the Company, its Subsidiaries and its Affiliates or policy of the Company, its Subsidiaries and its Affiliates relating to confidentiality, no-solicitation, no-hire, non-competition, non-disparagement or recoupment of compensation, including but not limited to the Restrictive Covenants and Confidentiality Agreement previously entered into between the Company and the Participant; provided, further, that this Agreement shall not supersede any written employment agreement with the Participant relating to the treatment of this Award upon the Participant’s termination of employment, if applicable.

[Signature page follows]

IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first above written.

By:

By:    AUTONATION, INC.

    Name:

    Title:

Schedule 1

Award:

Vesting:

EX-10.18

Exhibit 10.18

FORM OF AUTONATION, INC.

RETENTION RESTRICTED STOCK UNIT AWARD AGREEMENT

THIS RETENTION RESTRICTED STOCK UNIT AWARD AGREEMENT (this “Agreement”) is entered into as of November 1, 2021 (the “Date of Grant”), by and between the Company and (the “Executive”) who accepts the Award of Restricted Stock Units (the “RSUs”) made hereby, and agrees to be bound by this Agreement.

RECITALS

A.    The Company has established the AutoNation, Inc. 2017 Employee Equity and Incentive Plan (the “Plan”) in order to provide valued employees of the Company incentives to create and maintain long-term stockholder value; and

B.    The Compensation Committee of the Board of Directors of the Company has approved a grant to the Executive of RSUs, as an incentive to remain employed by the Company during the vesting period applicable to the RSUs, on the terms and conditions set forth in this Agreement.

TERMS OF AGREEMENT

NOW THEREFORE, for good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereby agree as follows:

1.    Definitions and Schedules. All capitalized terms used but not defined in this Agreement shall have the meanings given to them in the Plan. In addition, terms in respect of this Award that are not addressed in this Agreement shall be set forth on Schedule 1 attached hereto.

2.    Award of RSUs Pursuant to Plan. Subject to the terms and conditions, including the restrictions and risk of forfeiture, set forth herein and in the Plan, the Executive is hereby granted under the Plan, as of the Date of Grant, an Award of RSUs, the number of which is set forth for the Participant on the Schedule attached hereto.

3.    Number of Shares. The Company will establish a bookkeeping account to reflect the number of shares of Stock that are subject to the Executive’s Award. The Executive shall not be deemed to be the holder of, or to have any of the rights of a stockholder with respect to, any shares of Stock subject to the Executive’s Award unless and until the shares have been delivered in accordance with Section 7 of this Agreement.

4.    Vesting. Except as otherwise provided in Section 5 of this Agreement or in the Plan, the RSUs shall become vested on the applicable vesting date set forth on Schedule 1, subject to the Executive’s continued employment with the Company, its Subsidiaries or its Affiliates, through such vesting date. If the Performance Goal set forth on Schedule 1 is not achieved, the RSUs shall be immediately forfeited.

5.    Termination of Employment. Except as set forth in this Section 5 or as may otherwise be provided in a written employment agreement with the Executive (if applicable), upon the Executive’s termination of employment for any reason, any RSUs that have not become vested in accordance with Schedule 1 shall be immediately forfeited. Notwithstanding anything contained herein or in the Plan to the contrary, the provisions regarding acceleration of vesting upon termination of employment by reason of “Retirement” set forth in the Plan shall not apply with respect to this Award. Notwithstanding the foregoing, the following provisions shall apply to the Award:

(a)Termination of Employment for Cause. Upon the termination of the Executive’s employment for Cause by the Company, its Subsidiaries or its Affiliates, this Agreement shall terminate and all rights of the Executive with respect to all RSUs that have not been settled shall immediately terminate. The RSUs shall be forfeited without payment of any consideration,

and neither the Executive nor any of the Executive’s successors, heirs, assigns, or personal representatives shall thereafter have any further rights or interests in such RSUs.

(b)Qualifying Termination of Employment.

(i)Death. Upon the termination of the Executive’s employment with the Company, its Subsidiaries or its Affiliates thereof on account of death, the Executive shall immediately vest in full in the RSUs.

(ii)Termination of Employment without Cause or Resignation with Good Reason; Disability. Upon the termination of the Executive’s employment with the Company, its Subsidiaries or its Affiliates thereof (i) without Cause (as defined on Appendix A attached hereto) or upon the Executive’s resignation from the Company, its Subsidiaries or its Affiliates thereof with Good Reason (as defined on Appendix A attached hereto) or (ii) due to Disability (as defined on Appendix A attached hereto), the Executive shall continue to vest (as if the Executive’s employment had not been terminated) in the RSUs as set forth on Schedule 1 and the immediately following sentence. The RSUs shall continue to vest only if the Executive fully complies with the restrictive covenants set forth in Sections 9 and 10 of this Agreement in addition to any non-compete, non-disparagement, confidentiality and other restrictive covenants set forth in any other agreement entered into between the Executive and the Company or its Subsidiaries or its Affiliates from time to time (including, but not limited to any Restrictive Covenants and Confidentiality Agreement entered into between the Executive and the Company) determined, notwithstanding the time periods set forth therein, as if all such restrictive covenants applied at all times while the Award is outstanding. The Board shall determine whether the Executive has complied with such restrictive covenants. Any portion of the RSUs that does not vest in accordance with the foregoing shall automatically be forfeited.

6.    Dividend Equivalents. On each date on which a dividend is paid with respect to shares of Stock, dividend equivalents shall be credited hereunder in respect of the shares subject to the Award. Such dividend equivalents shall be credited as a number of additional RSUs equal to (i) the aggregate amount or value of the dividends paid with respect to that number of shares equal to the number of shares subject to such Award on the record date of such dividend, divided by (ii) the Fair Market Value per share on the payment date for such dividend. Such additional RSUs shall be subject to all the terms and conditions of this Agreement and shall vest at the same time that the related Award vests, and the shares subject to such additional RSUs shall be distributed only upon the distribution of the underlying shares with respect to which the dividend equivalents were granted.

7.    Payment. The Company shall deliver to the Executive either, in its sole and absolute discretion (a) a number of shares of Stock equal to the number of vested shares subject to the RSU Award, including dividend equivalents credited with respect to such shares, or (b) an amount of cash equal to the Fair Market Value of such shares on the date of the distribution, in either case, on or as soon as administratively practical following the date of vesting of the applicable portion of the total RSUs pursuant to the terms hereof (and in all events within seventy-five (75) days of the vesting date to the extent necessary to determine whether the Performance Goal has been achieved and otherwise within thirty (30) days of the vesting date).

8.    Executive Bound by Terms of Plan. The Executive hereby acknowledges receipt of a copy of the Plan and agrees to be bound by all of the terms, conditions and provisions thereof.

9.    Restrictive Covenants. The Executive hereby acknowledges that the Company is as of the date hereof engaged primarily in the sale, leasing, financing and servicing of new and used vehicles, as well as the provision of related services and products, such as the sale of parts and accessories, extended service contracts, aftermarket automotive products and collision repair services (the “Auto Business”). The Executive further acknowledges that: (i) the Company may engage in additional related businesses or in separate and distinct businesses from time to time, (ii) the Company currently engages in its businesses by means of traditional retail

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establishments, the Internet and otherwise and the Company may in the future engage in its businesses by alternative means, and (iii) the Executive’s position with the Company is such that he will be privy to specific trade secrets, confidential information, confidential business lists, confidential records, customer goodwill, specialized training and employees, any or all of which have great and competitive value to the Company. The Executive hereby agrees that, during the Executive’s employment with the Company and for a period of one (1) year following the termination of the Executive’s employment with the Company (by the Company or the Executive for any reason), the Executive shall not, directly or indirectly, anywhere in the United States (or in any other geographic area outside the United States where the Company conducts business at any time during Executive’s employment with the Company):

(a)participate or engage in or own an interest in, directly or indirectly, any individual proprietorship, partnership, corporation, joint venture, trust or other form of business entity, whether as an individual proprietor, partner, joint venturer, officer, director, member, employee, consultant, independent contractor, stockholder, lender, landlord, finder, agent, broker, trustee, or in any manner whatsoever (except for an ownership interest not exceeding 1% of a publicly-traded entity), if such entity or its affiliates is engaged, directly or indirectly, in the Auto Business or any other business of the type and character engaged in or competitive with any business conducted by the Company at any time during the Executive’s employment by the Company on or after the date hereof; provided, however, that, after the termination of the Executive’s employment with the Company, the Company’s Board of Directors (or any duly-authorized committee thereof) shall consider any request from the Executive and may allow the Executive to consult with any business entity on a case-by-case basis with any such determination to be made in the reasonable discretion of the Company’s Board of Directors (or such committee);

(b)employ, or knowingly permit any company or business directly or indirectly controlled by him to employ, any person who was employed by the Company or any subsidiary or affiliate of the Company at or within the prior six (6) months, or in any manner seek to induce any such person to leave his or her employment (including, without limitation, for or on behalf of a subsequent employer of the Executive);

(c)solicit any customers to patronize any business directly or indirectly in competition with the businesses conducted by the Company or any subsidiary or affiliate of the Company at any time during the Executive’s relationship with the Company; or

(d)request or advise any person who is a customer or vendor of the Company or any subsidiary or affiliate of the Company or its successors to withdraw, curtail or cancel any such customer’s or vendor’s business with any such entity.

10.    Confidentiality. The Executive hereby also agrees that, without the prior approval of the Company, he shall not at any time during his employment with the Company and for a period of five (5) years thereafter: (1) give any interviews or speeches, write any books or articles, make any public statements (whether through the press, at automobile trade conferences or meetings or through similar media), or make any disparaging or negative statements: (x) concerning the Company or any of its businesses or reputation or the personal or business reputations of its directors, officers, shareholders or employees, (y) concerning any matter he has participated in while an employee of the Company, or (z) in relation to any matter concerning the Company or any of its businesses occurring after the termination of the Executive’s employment; or (2) in any way impede, disrupt or interfere with the contracts, agreements, understandings, communications or relationships of the Company with any third party.

11.    Acknowledgments of the Parties. The parties agree and acknowledge that the restrictions contained in Sections 9 and 10 are reasonable in scope and duration and are necessary to protect the Company. If any provision of Sections 9 or 10 as applied to any party or to any circumstance is adjudged by a court to be invalid or unenforceable, the same shall in no way affect any other circumstances or the validity or enforceability of any other provisions of this Agreement. If any such provision, or any part thereof, is held to be unenforceable because of

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the duration of such provision or the area covered thereby, the parties agree that the court making such determination shall have the power to reduce the duration and/or area of such provision and/or to delete specific words or phrases and in its reduced form, such provision shall then be enforceable and shall be enforced. The Executive agrees and acknowledges that the breach of Section 9 or 10 will cause irreparable injury to the Company, and upon breach of any provision of such Sections, the Company shall be entitled to injunctive relief, specific performance or other equitable relief, provided, however, that such remedies shall in no way limit any other remedies which the Company may have (including, without limitation, the right to seek monetary damages). Further, the Executive acknowledges that he will continue to abide by any Restrictive Covenants and Confidentiality Agreement entered into between the Executive and the Company.

12.    Permitted Disclosures. Pursuant to 18 U.S.C. § 1833(b), the Executive will not be held criminally or civilly liable under any Federal or State trade secret law for the disclosure of a trade secret of the Company that (i) is made (A) in confidence to a Federal, State, or local government official, either directly or indirectly, or to her attorney and (B) solely for the purpose of reporting or investigating a suspected violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. If the Executive files a lawsuit for retaliation by the Company for reporting a suspected violation of law, the Executive may disclose the trade secret to her attorney and use the trade secret information in the court proceeding, if the Executive (i) files any document containing the trade secret under seal, and (ii) does not disclose the trade secret, except pursuant to court order. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by such section. Nothing in this Agreement or any other agreement by and between the Company and the Executive shall prohibit or restrict the Executive from (i) voluntarily communicating with an attorney retained by the Executive, (ii) voluntarily communicating with any law enforcement, government agency, including the Securities and Exchange Commission (“SEC”), the Equal Employment Opportunity Commission, a Federal, State or local commission on human rights, or any self-regulatory organization regarding possible violations of law, in each case without advance notice to the Company, (iii) recovering a SEC whistleblower award as provided under Section 21F of the Securities Exchange Act of 1934, or (iv) disclosing any confidential information to a court or other administrative or legislative body in response to a subpoena, court order or written request, provided that the Executive first promptly notifies and provides the Company with the opportunity to seek, and join in its efforts at the sole expense of the Company, to challenge the subpoena or obtain a protective order limiting its disclosure, or other appropriate remedy.

13.    Withholding. The Executive must satisfy any tax or other applicable withholding by having the Company withhold shares of Stock otherwise issuable hereunder.

14.    Governing Law. This Agreement shall be administered, interpreted and enforced under the internal laws of the State of Delaware without regard to conflicts of laws thereof.

15.    Severability. The invalidity or enforceability of any one or more provisions of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, which shall remain in full force and effect.

16.    Notices. All notices, requests, demands, claims and other communications by the Executive with respect to this Award shall be in writing and shall be deemed given if delivered by certified or registered mail (first class postage prepaid), guaranteed overnight delivery or facsimile transmission if such transmission is confirmed by delivery by certified or registered mail (first class postage prepaid) or guaranteed overnight delivery, to the following address (or to such other addresses or telecopy numbers which the Company shall designate in writing to the Executive from time to time):

AutoNation, Inc.

200 SW 1st Avenue, Suite 1400

Fort Lauderdale, Florida 33301

Attention: Human Resources

Telecopy: (xxx) xxx-xxxx

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with a copy to:        

AutoNation, Inc.

200 SW 1st Avenue, Suite 1600

Fort Lauderdale, Florida 33301

Attention: General Counsel

Telecopy: (xxx) xxx-xxxx

17.    Binding Effect. This Agreement shall not constitute a binding obligation of the Company or the Participant unless it is accepted by the Participant. Subject to the limitations stated above and in the Plan, this Agreement shall be binding upon and inure to the benefit of the successors and assigns of the Company and to the Executive’s heirs, legatees, distributees and personal representatives. No handmarked or interlineated modifications shall constitute a part of this Agreement.

18.    Conflict with Terms of the Plan. This Award is subject to the terms of the Plan, which provisions are hereby incorporated herein as if fully set forth herein. In the event that any provision of this Agreement conflicts with any provision of the Plan and cannot reasonably be interpreted to be a clarification of such provision of the Plan or an exercise of the authority granted to the Plan’s administrator pursuant to the Plan, the provision of the Plan shall govern and be controlling.

19.    409A. This Agreement is intended to be exempt from, or to the extent subject thereto, comply with, the requirements of Section 409A of the Code, and shall in all respects be administered and interpreted in accordance with such intent. Notwithstanding anything to the contrary in this Agreement, to the extent necessary to avoid the imposition of any individual penalty tax and late interest charges imposed under Section 409A of the Code, such payment shall instead be made on the first business day after the date that is six (6) months following such separation from service (or upon the Executive’s death, if earlier).

20.    Integration. This Agreement supersedes all prior agreements and understandings between the Executive and the Company, its Subsidiaries and its Affiliates relating to the grant of this Award, whether oral or otherwise, provided however that this Agreement shall not supersede any agreement (including any employment agreement) with the Company, its Subsidiaries and its Affiliates or policy of the Company, its Subsidiaries and its Affiliates relating to confidentiality, no-solicitation, no-hire, non-competition, non-disparagement or recoupment of compensation, including but not limited to the Restrictive Covenants and Confidentiality Agreement previously entered into between the Company and the Executive; provided, further, that this Agreement shall not supersede any written employment agreement with the Executive relating to the treatment of this Award upon the Executive’s termination of employment, if applicable.

[Signature page follows]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date first above written.

By:

By:    AUTONATION, INC.

Name:

Title:

6

Schedule 1

Award:

Vesting:

7

Appendix A

“Cause” shall mean (1) the Executive’s conviction for commission of a felony or other crime; (2) the commission by the Executive of any act against the Company constituting willful misconduct, dishonesty, fraud, theft or embezzlement; (3) the Executive’s failure, inability or refusal to perform any of the material services, duties or responsibilities required of him by the Company, or to materially comply with the policies or procedures established from time to time by the Company, for any reason other than his illness or physical or mental incapacity; (4) the Executive’s dependence, as determined in good faith by the Company, on any addictive substance, including, but not limited to, alcohol or any illegal or narcotic drugs; (5) the destruction of or material damage to Company property caused by the Executive’s willful or grossly negligent conduct; and (6) the willful engaging by the Executive in any other conduct which is demonstrably injurious to the Company or its subsidiaries, monetarily or otherwise. Notwithstanding the foregoing, if the Executive is a party to an employment agreement with the Company, “Cause” with respect to such Executive shall have the meaning set forth therein.

“Disability” means “permanent and total disability” within the meaning of Section 22(e)(3) of the Code.

“Good Reason” means the occurrence (without the Executive’s express written consent) of any one of the following acts by the Company, or failures by the Company to act, unless, in the case of any act or failure to act described in paragraph (i) or (v) below, such act or failure to act is corrected prior to the date of termination of the Executive’s employment or service:

(i) the assignment to the Executive of any duties inconsistent with the Executive’s status or a substantial adverse alteration in the nature or status of the Executive’s responsibilities, including, without limitation, if the Executive was an executive officer of a public company, the Executive ceasing to be an executive officer of a public company;

(ii) a reduction by the Company in the Executive’s annual base salary;

(iii) the relocation of the Executive’s principal place of employment by more than 50 miles or the Company’s requiring the Executive to be based anywhere other than such principal place of employment (or permitted relocation thereof) except for required travel on the Company’s business to an extent substantially consistent with the Executive’s previous business travel obligations;

(iv) the failure by the Company to pay to the Executive any portion of the Executive’s current compensation or to pay to the Executive any portion of an installment of deferred compensation under any deferred compensation program of the Company, within seven (7) days of the date such compensation is due; or

(v) the failure by the Company to continue in effect any compensation plan in which the Executive participates which is material to the Executive’s total compensation, including but not limited to the Company’s equity-based long term incentive plans and annual incentive plans, unless a comparable arrangement (embodied in an ongoing substitute or alternative plan) has been made with respect to such plan, or an adverse change in the Executive’s participation therein (or in such substitute or alternative plan) either in terms of the amount or timing of payment of benefits provided or the level of the Executive’s participation relative to other participants.

The Executive’s right to terminate the Executive’s employment for Good Reason shall not be affected by the Executive’s incapacity due to physical or mental illness. The Executive’s continued employment shall not constitute consent to, or a waiver of rights with respect to, any act or failure to act constituting Good Reason hereunder; provided, that the Executive provides the Company with a written notice of termination within ninety (90) days following the occurrence of the event constituting Good Reason. In no event shall the Executive have Good Reason to terminate employment unless such act or failure to act has not been cured within thirty (30) days after a notice of termination is delivered by the Executive to the Company.

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EX-10.24

Exhibit 10.24

RETIREMENT AND GENERAL RELEASE AGREEMENT

This Retirement and General Release Agreement (the “Agreement”) is entered into and effective as of November 1, 2021, subject to the terms and conditions set forth herein, by and between Michael J. Jackson (“you” or “Executive”) and AutoNation, Inc. (“AutoNation” or the “Company”) as contemplated by the Employment Agreement dated July 14, 2020 (the “Employment Agreement”) upon a new Chief Executive Officer commencing employment on November 1, 2021 (such date, the “Retirement Date”).

1.Company Consideration. In accordance with the requirements of the Employment Agreement and in consideration of the covenants contained herein, provided that this Agreement becomes effective on the Release Effective Date (as defined in Section 3(b) below) and you remain in compliance with this Agreement, the Company will provide you with the payments and benefits set forth on Appendix A, at the time and in the form set forth on Appendix A, less all applicable withholdings and deductions.

2.Release.

(a)You, on behalf of yourself, and your heirs, executors, administrators, successors and assigns, hereby irrevocably and unconditionally waive, release, and forever discharge the Company and its respective affiliates, directors, officers, employees, and representatives (collectively, the “Company Releasees”) from any and all claims, liabilities, obligations, promises, agreements, causes of action, and expenses of any nature whatsoever, known or unknown, , which you or your heirs, executors, or assigns ever had, now have or may have by reason of any matter, fact or cause whatsoever against the Company Releasees (collectively, “Claims”): arising prior to and through the date upon which you execute this Agreement, including, but not limited to (A) any such Claims relating to or arising out of your employment with the Company, and (B) any such Claims arising under any federal, state or local labor, employment, whistleblower or anti-discrimination laws or any other laws including, without limitation, the federal Age Discrimination in Employment Act (ADEA) or the Older Workers Benefit Protection Act,; (ii) arising out of, or relating to, your retirement from the Company; or (iii) arising out of, or relating to, any agreement or contract with the Company or any of its affiliates; and/or any awards, policies, plans, programs, understanding or promise, written or oral ; and (iv) arising out of, or relating to, your status as an employee, officer, member, manager, partner or director of the Company or any of its affiliates.

(b)Notwithstanding the foregoing, you and the Company recognize that nothing contained in Section 2(a) shall in any way release, impair or discharge: (i) your right to enforce, or bring any Claim for breach of, the terms of the General Release, including the rights to the payments and benefits set forth on Appendix A, (ii) your right to receive benefits under the Company’s 401(k) or pension plans, if any, that have accrued and vested on or prior to the date of my resignation; (iii) your rights with respect to any stock options or other equity awards held by you, (iv) any right to file an administrative charge or participate in an investigation or proceeding conducted by, the Equal Employment Opportunity Commission, the Florida Commission on Human Relations, or other similar federal, state, or local administrative agencies, although you waive any right to monetary relief related to any filed charge or administrative complaint to the extent permitted by applicable law, (iv) any rights to indemnification which you might have as a result of your employment with the Company, and/or (v) any rights that cannot be waived under applicable law.

(c)You hereby further acknowledge and agree that, except as otherwise provided herein, the Company Releasees have fully satisfied any and all obligations whatsoever owed to you arising out of your employment with the Company, and that no further payments or benefits are owed to you by the Company Releasees.

3.Consideration and Revocation.

(a)You acknowledge that the Company has advised you to consult with an attorney of your own choosing prior to executing this Agreement. You also agree and acknowledge that you are receiving benefits and payments to which you would not otherwise be entitled unless you sign this Agreement, that you have voluntarily consented to this Agreement and that you have entered into this Agreement freely, knowingly and voluntarily.

(b)You have twenty-one (21) calendar days to consider the terms of this Agreement. However, you may sign and return this Agreement before the expiration of the twenty-one (21) calendar day period. You agree that changes to this Agreement, whether material or immaterial, will not restart the running of the twenty-one (21) calendar day period. Once signed, you will have seven (7) additional calendar days from the date that you sign this Agreement to revoke your consent. Such revocation must be in writing and must be addressed to the Company’s General Counsel and sent via email to edmundsc@autonation.com. This Agreement will not become effective until the eighth (8th) calendar day after the date on which you execute it (the “Release Effective Date”). If you revoke your consent within such seven (7) calendar day period, this Agreement shall be of no force or effect and you shall have no right to the payments or benefits as set forth in the Employment Agreement.

4.No Admission. This Agreement does not constitute an admission of liability or wrongdoing by you or the Company.

5.Cooperation. Following the Retirement Date and through the 2022 Grant Date, you agree to cooperate on matters concerning the management of the business and provide other services as reasonably requested by the Board or its designees. You will provide your own workspace and will be reasonably available by email or telephone during such period. You further agree that you will cooperate fully with the Company relating to any legal disputes, litigation matter or other legal proceeding in which you were involved or on which you have knowledge by virtue of your employment with the Company. You will be entitled to reimbursement by the Company of reasonable costs and expenses incurred by you in connection with complying with your cooperation obligations under Section 5 of this Agreement.

6.No Waiver. A failure of any of the Company Releasees to insist on strict compliance with any provision of this General Release shall not be deemed a waiver of such provision or any other provision hereof.

7.Entire Agreement. This Agreement contains the entire agreement between the you and the Company relating to the matters contained herein and amends, supersedes and restates all prior agreements and understandings, oral or written, between you and the Company with respect to the subject matter hereof; provided, however, that you understand and agree that Sections 2(d), 3 and 4 of the Employment Agreement remain in full force and effect. No amendment or modification of this Agreement shall be valid or binding on the Parties unless in writing and signed by both Parties.

8.Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Florida, without regard to the application of any choice-of-law rules that would result in the application of another state's laws.

2

IN WITNESS WHEREOF, the Company and Executive have executed this General Release Agreement as of the dates indicated below.

AutoNation, Inc.

/s/ Coleman Edmunds            
Coleman Edmunds

Executive Vice President

and General Counsel

Date: 11/1/2021

ACCEPTED AND AGREED:

/s/ Mike Jackson

Michael J. Jackson

Date: 11/1/2021

3

APPENDIX A

Subject to the terms of the Agreement, the Company will pay or provide you with the following payments/benefits:

(a)An aggregate of $576,136.40, representing the sum of your remaining base salary to be paid from the Retirement Date through April 12, 2022, payable in a lump sum within thirty (30) days of the Release Effective Date;

(b)An aggregate of $2,103,575, representing your annual bonus in respect of 2022, payable in a lump sum within thirty (30) days of the Release Effective Date;

(c)Payment of your annual bonus for the 2021 fiscal year, calculated as if you remained employed and the Retirement Date had not occurred in 2021, based on actual performance following determination by the Compensation Committee (or the Board) that the Company has achieved or exceeded its annual performance targets for the fiscal year, paid at the same time as annual bonuses are paid to the Company’s other executives, but in no event later than March 15, 2022;

(d)A restricted stock unit grant under the Company’s long-term incentive compensation program with a grant date value at target of $2,543,014 in 2022 (the date of such grant, the “2022 Grant Date”);

(e)Your rights with respect to any stock options or other equity awards held by you will be treated as set forth in the applicable equity incentive plan and any grant agreements, including your right to retirement treatment under such awards; as to the performance- based restricted stock units granted to you in 2019 and 2020, your payout will be pro-rated based on the number of full months of your employment during the applicable 36-month performance period; and

(f)With respect to health and welfare benefits, continued coverage for a period of eighteen (18) months following the Retirement Date at the active employee cost as in effect immediately prior to the Retirement Date.

EX-21.1

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
7 Rod Real Estate North, A Limited Liability Company		Wyoming
7 Rod Real Estate South, A Limited Liability Company		Wyoming
Abraham Chevrolet-Miami, Inc.	AutoNation Chevrolet Coral Gables	Delaware
Abraham Chevrolet-Tampa, Inc.		Delaware
ACER Fiduciary, Inc.		Delaware
ACP Auto Parts, LLC		Delaware
ACP Holding Corp.		Delaware
AL F-L Motors, LLC		Delaware
AL Fort Payne Motors, LLC		Delaware
Albuquerque ANUSA, LLC		Delaware
Allen Samuels Chevrolet of Corpus Christi, Inc.	AutoNation Chevrolet North Corpus Christi; AutoNation Collision Center North Corpus Christi	Texas
Allen Samuels Chevrolet of Waco, Inc.	AutoNation Chevrolet Waco; Mercedes-Benz of Waco; AutoNation Collision Center Waco	Texas
Allison Bavarian	BMW of Mountain View	California
Allison Bavarian Holding, LLC		Delaware
American Way Motors, Inc.	AutoNation Honda 385	Tennessee
AN AutoParts, Inc.		Delaware
AN Cadillac of WPB, LLC	AutoNation Cadillac West Palm Beach	Delaware
AN Central Region Management, LLC		Delaware
AN Chevrolet - Arrowhead, Inc.	AutoNation Chevrolet Arrowhead	Delaware
AN CJ Valencia, Inc.		Delaware
AN Collision Center FTL South, Inc.	AutoNation Collision Center Fort Lauderdale South	Delaware
AN Collision Center of Addison, Inc.	AutoNation Collision Center Addison	Delaware
AN Collision Center of Las Vegas, Inc.	AutoNation Collision Center Las Vegas	Nevada
AN Collision Center of North Houston, Inc.	AutoNation Collision Center North Houston	Delaware
AN Collision Center of Tempe, Inc.	AutoNation Collision Center Tempe	Delaware
AN Corporate Management Payroll Corp.		Delaware
AN Corpus Christi GP, LLC		Delaware
AN Corpus Christi Imports Adv. GP, LLC		Delaware
AN Corpus Christi Imports Adv., LP		Texas
AN Corpus Christi Imports GP, LLC		Delaware
AN Corpus Christi Imports II GP, LLC		Delaware
AN Corpus Christi Imports II, LP		Texas
AN Corpus Christi Imports, LP		Texas
AN Corpus Christi Motors, Inc.	AutoNation Hyundai Corpus Christi	Delaware
AN Corpus Christi T. Imports GP, LLC		Delaware
AN Corpus Christi T. Imports, LP	AutoNation Toyota Corpus Christi	Texas
AN County Line Ford, Inc.	AutoNation Ford Burleson	Texas
AN Dealership Holding Corp.		Florida
AN F. Imports of Atlanta, LLC		Delaware
AN F. Imports of Hawthorne Holding, LLC		Delaware
AN F. Imports of Hawthorne, LLC		Delaware
AN F. Imports of North Denver, LLC		Delaware
AN F. Imports of North Phoenix, Inc.		Delaware
AN F. Imports of Roseville Holding, LLC		Delaware
AN F. Imports of Roseville, Inc.		Delaware

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
AN Fort Myers Imports, LLC	AutoNation Toyota Fort Myers; AutoNation Collision Center Fort Myers	Delaware
AN Fremont Luxury Imports, Inc.	BMW of Fremont	Delaware
AN H. Imports of Atlanta, LLC	AutoNation Hyundai Mall of Georgia	Delaware
AN Imports of Ft. Lauderdale, Inc.	Land Rover Fort Lauderdale; Jaguar Fort Lauderdale; Jaguar Land Rover Fort Lauderdale	Delaware
AN Imports of Seattle, Inc.		Delaware
AN Imports of Spokane, Inc.	AutoNation Honda Spokane Valley	Delaware
AN Imports of Stevens Creek Holding, LLC		Delaware
AN Imports of Stevens Creek, Inc.	MINI of Stevens Creek	Delaware
AN Imports on Weston Road, Inc.	AutoNation Toyota Weston	Florida
AN Luxury Imports GP, LLC		Delaware
AN Luxury Imports Holding, LLC		Delaware
AN Luxury Imports of Coconut Creek, Inc.	Mercedes-Benz of Coconut Creek; smart center of Coconut Creek	Delaware
AN Luxury Imports of Marietta, LLC	Mercedes-Benz of Marietta	Delaware
AN Luxury Imports of Palm Beach, Inc.	Mercedes-Benz of Delray	Delaware
AN Luxury Imports of Pembroke Pines, Inc.	Mercedes-Benz of Pembroke Pines	Delaware
AN Luxury Imports of Phoenix, Inc.	Audi Peoria	Delaware
AN Luxury Imports of San Diego, Inc.	BMW Encinitas	Delaware
AN Luxury Imports of Sanford, LLC	Mercedes-Benz of North Orlando	Delaware
AN Luxury Imports of Sarasota, Inc.	Mercedes-Benz of Sarasota; smart center Sarasota	Delaware
AN Luxury Imports of Spokane, Inc.	AutoNation Acura Spokane Valley	Delaware
AN Luxury Imports of Tucson, Inc.	BMW of Tucson	Delaware
AN Luxury Imports, Ltd.	BMW of Dallas; MINI of Dallas	Texas
AN Motors of Brooksville, Inc.	AutoNation Ford Brooksville	Florida
AN Motors of Dallas, Inc.		Delaware
AN Motors of Delray Beach, Inc.		Delaware
AN Motors of Ft. Lauderdale, Inc.		Florida
AN Motors of Memphis, Inc.	AutoNation GMC Mendenhall	Tennessee
AN Motors of Pembroke, LLC	AutoNation Chevrolet Pembroke Pines; AutoNation Collision Center Pembroke Pines	Delaware
AN Motors of Scottsdale, LLC	AutoNation Ford Scottsdale	Delaware
AN Motors on Federal Highway, LLC		Delaware
AN Motors on South Padre, LP	AutoNation Chevrolet South Corpus Christi; AutoNation Cadillac Corpus Christi; AutoNation Buick GMC Corpus Christi	Texas
AN North Phoenix Collision, Inc.		Delaware
AN Pontiac GMC Houston North GP, LLC		Delaware
AN Pontiac GMC Houston North, LP		Texas
AN San Jose Luxury Imports Holdings, LLC		Delaware
AN San Jose Luxury Imports, Inc.	Mercedes-Benz of Stevens Creek; AutoNation Volvo Cars San Jose; AutoNation Collision Center Stevens Creek	California
AN Seattle Motors, Inc.		Delaware
AN Subaru Motors, Inc.	AutoNation Subaru Scottsdale	Delaware
AN T. Imports of Atlanta, LLC	AutoNation Toyota Mall of Georgia; AutoNation Collision Center Mall of Georgia	Delaware
AN Texas Region Management, Ltd.	AutoNation Shared Service Center	Texas

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
AN Tucson Imports, LLC		Delaware
AN Valencia Auto Imports, Inc.		Delaware
AN Western Region Management, LLC		Delaware
AN/CF Acquisition Corp.	AutoNation Ford Littleton	Delaware
AN/KPBG Motors, Inc.		Washington
AN/MF Acquisition Corp.		Delaware
AN/MNI Acquisition Corp.	AutoNation Nissan Memphis	Delaware
AN/PF Acquisition Corp.	AutoNation Ford Bellevue	Delaware
ANSC-RE, Inc.		Delaware
ANUSA Holding, LLC		Delaware
Appleway Chevrolet, Inc.	AutoNation Chevrolet Spokane Valley; AutoNation Subaru Spokane Valley; AutoNation Toyota Spokane Valley; AutoNation Volkswagen Spokane; Audi Spokane; Jaguar Land Rover Spokane; AutoNation Collision Center Spokane; AutoNation Parts Center; AutoNation Towing Spokane	Washington
ASE Motors Holding Corp.		Texas
Auto Car Holding, LLC		Delaware
Auto Car, Inc.	AutoNation Honda Roseville; AutoNation Honda Roseville Pre-Owned	California
Auto Company 2017-09, Inc.		Delaware
Auto Company 2017-10, Inc.		Delaware
Auto Company IX, Inc.		Delaware
Auto Company VI, Inc.	Audi Plano	Delaware
Auto Company VII, Inc.	Porsche Plano	Delaware
Auto Company VIII, Inc.		Delaware
Auto Company XI, Inc.	AutoNation Chrysler Dodge Jeep Ram Spring	Delaware
Auto Company XII, Inc.		Delaware
Auto Company XIII, Inc.	AutoNation Honda Chandler	Delaware
Auto Company XIV, Inc.	AutoNation Hyundai Tempe	Delaware
Auto Company XIX, Inc.	Porsche Irvine	Delaware
Auto Company XVII, Inc.	AutoNation Chrysler Dodge Jeep Ram Mobile	Delaware
Auto Company XXI, Inc.	Audi Bellevue; Mercedes-Benz of Bellevue; Porsche Bellevue	Delaware
Auto Company XXII, Inc.	Mercedes-Benz of San Jose; smart Center San Jose	Delaware
Auto Company XXIII, Inc.	AutoNation Chrysler Dodge Jeep Ram Valencia	Delaware
Auto Company XXV, Inc.	Mercedes-Benz of Reno	Delaware
Auto Company XXVII, Inc.	BMW of Delray Beach	Delaware
Auto Company XXVIII, Inc.		Delaware
Auto Dealership 2016-1, LLC		Delaware
Auto Dealership 2016-2, LLC		Delaware
Auto Dealership 2016-5, LLC		Delaware
Auto Dealership 2016-6, LLC		Delaware
Auto Dealership 2016-7, LLC		Delaware
Auto Dealership 2017-19, LLC		Delaware
Auto Dealership 2017-22, LLC		Delaware
Auto Dealership 2017-25, LLC		Delaware
Auto Dealership 2017-26, LLC		Delaware

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
Auto Dealership 2017-27, LLC		Delaware
Auto Dealership 2017-28, LLC		Delaware
Auto Dealership 2017-30, LLC		Delaware
Auto Dealership III, LLC	AutoNation Honda O'Hare	Delaware
Auto Dealership IV, LLC	AutoNation Hyundai O'Hare	Delaware
Auto Dealership IX, LLC		Delaware
Auto Dealership V, LLC	Mercedes-Benz of Wesley Chapel	Delaware
Auto Dealership VI, LLC	AutoNation Volkswagen Mall of Georgia	Delaware
Auto Dealership VII, LLC		Delaware
Auto Dealership VIII, LLC		Delaware
Auto Dealership X, LLC		Delaware
Auto Dealership XXIII, LLC		Delaware
Auto Holdings, LLC		Delaware
Auto Mission Holding, LLC		Delaware
Auto Mission Ltd.	AutoNation Toyota Hayward	California
Auto Motors of Englewood, LLC	AutoNation Chrysler Jeep Arapahoe	Delaware
Auto TechLabs, Inc.		Delaware
Autohaus Holdings, Inc.		Delaware
AutoNation Benefits Company, Inc.		Florida
AutoNation Cayman Insurance Company, Ltd.		Cayman Islands
AutoNation Corporate Management, LLC		Delaware
AutoNation Enterprises Incorporated		Florida
AutoNation Financial Services, LLC		Delaware
AutoNation Fort Worth Motors, Ltd.	AutoNation Chevrolet North Richland Hills	Texas
AutoNation GM GP, LLC		Delaware
AutoNation Holding Corp.		Delaware
AutoNation Imports of Katy GP, LLC		Delaware
AutoNation Imports of Katy, L.P.		Texas
AutoNation Imports of Lithia Springs, LLC	AutoNation Toyota Thornton Road	Delaware
AutoNation Imports of Longwood, Inc.	AutoNation Honda Sanford	Delaware
AutoNation Imports of Palm Beach, Inc.	Lexus of Palm Beach	Delaware
AutoNation Imports of Winter Park, Inc.	AutoNation Toyota Winter Park	Delaware
AutoNation Motors Holding Corp.		Delaware
AutoNation Motors of Lithia Springs, Inc.		Delaware
AutoNation North Texas Management GP, LLC		Delaware
AutoNation Orlando Venture Holdings, Inc.		Delaware
AutoNation Realty Corporation		Delaware
AutoNation Suite 101, Inc.		Delaware
AutoNation USA of Perrine, Inc.		Delaware
AutoNation V. Imports of Delray Beach, LLC		Delaware
AutoNation.com, Inc.	AutoNation Direct	Delaware
Baltimore Imports, LLC		Delaware
Bankston Auto, Inc.		Texas
Bankston Chrysler Jeep of Frisco, L.P.		Texas
Bankston CJ GP, LLC		Delaware
Bankston Ford of Frisco, Ltd. Co.	AutoNation Ford Frisco	Texas
Bankston Nissan in Irving, Inc.		Texas
Bankston Nissan Lewisville GP, LLC		Delaware

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
Bankston Nissan Lewisville, Ltd.		Texas
Bargain Rent-A-Car	Lexus of Cerritos	California
Batfish, LLC		Colorado
BBCSS, Inc.		Arizona
Beach City Chevrolet Company, Inc.		California
Beach City Holding, LLC		Delaware
Beacon Motors, Inc.	AutoNation Chevrolet Doral; AutoNation Collision Center Miami	Florida
Bel Air Luxury Imports, LLC		Delaware
Bell Motors, LLC	AutoNation Chrysler Dodge Jeep Ram and FIAT North Phoenix	Delaware
Bellevue Automotive, Inc.	AutoNation Chrysler Dodge Jeep Ram Bellevue	Delaware
Bellevue Collision, Inc.	AutoNation Collision Center Bellevue	Delaware
Bengal Motor Company, Ltd.	AutoNation Honda Miami Lakes	Florida
Bengal Motors, Inc.		Florida
Bethesda Luxury Imports, LLC	Jaguar Land Rover Bethesda	Delaware
Bill Ayares Chevrolet, LLC	AutoNation Chevrolet Laurel	Delaware
Bledsoe Dodge, LLC		Delaware
Bob Townsend Ford, Inc.		Delaware
Body Shop Holding Corp.		Delaware
Boise ANUSA, LLC		Delaware
Brown & Brown Chevrolet - Superstition Springs, LLC	AutoNation Chevrolet Mesa	Arizona
Brown & Brown Chevrolet, Inc.	AutoNation Chevrolet Gilbert; AutoNation Parts Center Phoenix	Arizona
Brown & Brown Nissan Mesa, L.L.C.	AutoNation Nissan Chandler; AutoNation Collision Center Chandler	Arizona
Brown & Brown Nissan, Inc.	AutoNation Nissan Tempe	Arizona
Buena Park Luxury Imports, Inc.	BMW Buena Park	Delaware
Bull Motors, LLC	AutoNation Ford Miami	Delaware
C. Garrett, Inc.		Colorado
Carlisle Motors, LLC	AutoNation Ford St. Petersburg; AutoNation Lincoln Clearwater	Delaware
Carwell Holding, LLC		Delaware
Carwell, LLC	Mercedes-Benz of South Bay; Jaguar Land Rover South Bay	Delaware
Centennial Automotive, LLC	AutoNation Dodge Ram Arapahoe	Delaware
Centennial Collision, Inc.		Delaware
Cerritos Body Works Holding, LLC		Delaware
Cerritos Body Works, Inc.		California
Champion Chevrolet Holding, LLC		Delaware
Champion Ford, Inc.		Texas
Chandler Collision, Inc.		Delaware
Charleston ANUSA, LLC	AutoNation USA Charleston	Delaware
Charlie Hillard, Inc.	AutoNation Ford Fort Worth	Texas
Charlie Thomas Chevrolet GP, LLC		Delaware
Charlie Thomas Chevrolet, Ltd.	AutoNation Chevrolet Gulf Freeway; AutoNation Collision Center NASA; AutoNation Chevrolet Gulfgate	Texas
Charlie Thomas Chrysler-Plymouth, Inc.		Texas
Charlie Thomas' Courtesy Ford, Ltd.	AutoNation Ford Corpus Christi	Texas

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
Charlie Thomas' Courtesy GP, LLC		Delaware
Charlie Thomas F. GP, LLC		Delaware
Charlie Thomas Ford, Ltd.	AutoNation Ford Gulf Freeway	Texas
Charlotte ANUSA, LLC	AutoNation USA Charlotte	Delaware
Chesrown Chevrolet, LLC	AutoNation Chevrolet North	Delaware
Chesrown Collision Center, Inc.	AutoNation Collision Center Denver	Colorado
Chesrown Ford, Inc.		Colorado
Chevrolet World, Inc.	AutoNation Chevrolet Airport	Florida
Chuck Clancy Ford of Marietta, LLC	AutoNation Ford Marietta; AutoNation Collision Center Marietta	Delaware
CJ Valencia Holding, LLC		Delaware
Coastal Cadillac, Inc.	AutoNation Cadillac Port Richey	Florida
Colorado Springs ANUSA, LLC		Delaware
Consumer Car Care Corporation		Tennessee
Contemporary Cars, Inc.	Mercedes-Benz of Orlando; smart center of Orlando	Florida
Cook-Whitehead Ford, Inc.	AutoNation Ford Panama City	Florida
Corporate Properties Holding, Inc.		Delaware
Corpus Christi ANUSA, LLC	AutoNation USA Corpus Christi	Delaware
Corpus Christi Collision Center, Inc.	AutoNation Collision Center Corpus Christi	Delaware
Costa Mesa Cars Holding, LLC		Delaware
Costa Mesa Cars, Inc.	AutoNation Honda Costa Mesa	California
Courtesy Auto Group, Inc.		Florida
Covington Pike Motors, Inc.	AutoNation Honda Covington Pike	Tennessee
CT Intercontinental GP, LLC		Delaware
CT Intercontinental, Ltd.	BMW of Houston North; MINI of the Woodlands	Texas
CT Motors, Inc.	AutoNation Acura Gulf Freeway	Texas
D/L Motor Company	AutoNation Honda Clearwater; AutoNation Collision Center Clearwater; AutoNation Collision Center Clearwater South	Florida
Dealership Realty Corporation		Texas
Delray Luxury Imports, Inc.		Delaware
Denver 104 ANUSA, LLC	AutoNation USA Denver 104	Delaware
Denver Broadway ANUSA, LLC	AutoNation USA Denver Broadway	Delaware
Desert Buick-GMC Trucks, L.L.C.	AutoNation Buick GMC West Sahara	Delaware
Desert Chrysler-Plymouth, Inc.		Delaware
Desert Dodge, Inc.		Nevada
Desert GMC, L.L.C.	AutoNation Buick GMC Henderson	Delaware
Dobbs Ford of Memphis, Inc.	AutoNation Ford Wolfchase	Delaware
Dobbs Ford, Inc.	AutoNation Ford Memphis; AutoNation Collision Center Memphis	Florida
Dobbs Mobile Bay, Inc.	AutoNation Ford Mobile	Alabama
Dobbs Motors of Arizona, Inc.	AutoNation Honda Tucson Auto Mall	Arizona
Don Mealey Chevrolet, Inc.	AutoNation Chevrolet West Colonial; AutoNation Collision Center West Colonial	Florida
Don Mealey Imports, Inc.	AutoNation Acura North Orlando	Florida
Don-A-Vee Jeep Eagle, Inc.		California
Driver's Mart Worldwide, Inc.		Virginia
Eastern Region Management, LLC		Delaware
Eastgate Ford, Inc.		Ohio

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
Ed Mullinax Ford, LLC	AutoNation Ford Amherst; AutoNation Collision Center Amherst	Delaware
Edgren Motor Company, Inc.	AutoNation Honda Fremont	California
Edgren Motor Holding, LLC		Delaware
El Monte Imports Holding, LLC		Delaware
El Monte Imports, Inc.		Delaware
El Monte Motors Holding, LLC		Delaware
El Monte Motors, Inc.		Delaware
Emich Subaru West, LLC	AutoNation Subaru West	Delaware
Empire Services Agency, Inc.		Florida
Financial Services GP, LLC		Delaware
First Team Automotive Corp.		Delaware
First Team Ford of Manatee, Ltd.	AutoNation Ford Bradenton; AutoNation Collision Center Sarasota	Florida
First Team Ford, Ltd.	AutoNation Ford Sanford	Florida
First Team Management, Inc.		Florida
Fit Kit Holding, LLC		Delaware
Fit Kit, Inc.	AutoNation Toyota Buena Park	California
Florida Auto Corp.		Delaware
Ford of Kirkland, Inc.		Washington
Fort Myers ANUSA, LLC		Delaware
Fox Chevrolet, LLC		Delaware
Fox Motors, LLC	AutoNation Buick GMC Laurel	Delaware
Fremont Luxury Imports Holding, LLC		Delaware
G.B. Import Sales & Service Holding, LLC		Delaware
G.B. Import Sales & Service, LLC		Delaware
GA CDJR Motors, LLC	AutoNation Chrysler Dodge Jeep Ram and FIAT Columbus; AutoNation Chrysler Dodge Jeep Ram South Columbus	Delaware
GA Columbus Imports, LLC	AutoNation Volkswagen Columbus	Delaware
GA F Imports, LLC		Delaware
GA H Imports, LLC	AutoNation Honda Columbus	Delaware
GA HY Imports, LLC	AutoNation Hyundai Columbus	Delaware
GA-CC Columbus, Inc.	AutoNation Collision Center Columbus	Delaware
GA-HYG Imports, Inc.	AutoNation Hyundai Savannah; Genesis of Savannah	Delaware
GA-VW Imports, Inc.	AutoNation Volkswagen Savannah	Delaware
Gene Evans Ford, LLC	AutoNation Ford Union City	Delaware
George Sutherlin Nissan, LLC	AutoNation Nissan Marietta	Delaware
Germantown Luxury Imports, LLC		Delaware
Gilbert ANUSA, LLC		Delaware
Gilbert Body Shop, Inc.		Delaware
Government Boulevard Motors, Inc.	AutoNation Honda at Bel Air Mall	Alabama
Gulf Management, Inc.	Lexus of Clearwater; Lexus of Tampa Bay	Florida
Harbor Boulevard Imports, Inc.		Delaware
Hayward Dodge, Inc.		Delaware
Henderson ANUSA, LLC	AutoNation USA Henderson	Delaware
Henderson Collision, Inc.		Delaware
HH-A Luxury Imports, Inc.	Audi Hilton Head	Delaware

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
HH-CDJR Motors, Inc.	AutoNation Chrysler Dodge Jeep Ram Hilton Head	Delaware
HH-Collision, Inc.	AutoNation Collision Center Hilton Head	Delaware
HH-HYG Imports, Inc.	AutoNation Hyundai Hilton Head; Genesis of Hilton Head	Delaware
HH-JLR Luxury Imports, Inc.	Jaguar Land Rover Hilton Head	Delaware
HH-P Luxury Imports, Inc.	Porsche Hilton Head	Delaware
HH-S Imports, Inc.	AutoNation Subaru Hilton Head	Delaware
HH-VW Imports, Inc.	AutoNation Volkswagen Hilton Head	Delaware
Hillard Auto Group, Inc.		Texas
Hollywood Imports Limited, Inc.	AutoNation Honda Hollywood; AutoNation Collision Center Hollywood	Florida
Horizon Chevrolet, Inc.		Ohio
House of Imports Holding, LLC		Delaware
House of Imports, Inc.	House of Imports	California
Houston ANUSA, LLC	AutoNation USA Houston	Delaware
Houston Auto M. Imports Greenway, Ltd.	Mercedes-Benz of Houston Greenway	Texas
Houston Auto M. Imports North, Ltd.	Mercedes-Benz of Houston North; smart center Houston North	Texas
Houston Imports Greenway GP, LLC		Delaware
Houston Imports North GP, LLC		Delaware
HVP Luxury Imports, LLC	Porsche Hunt Valley	Delaware
HV Body Shop, LLC	AutoNation Collision Center Hunt Valley	Delaware
HV York Road Imports, LLC	AutoNation Acura Hunt Valley	Delaware
HVA Imports, LLC	Audi Hunt Valley	Delaware
HVC Motors, LLC		Delaware
HVJLR Luxury Imports, LLC	Jaguar Land Rover Hunt Valley	Delaware
HVM Imports, LLC	Mercedes-Benz of Hunt Valley	Delaware
HVS Motors, LLC	AutoNation Subaru Hunt Valley	Delaware
HVVW Motors, LLC		Delaware
Imports on PCH, Inc.		Delaware
Irvine Imports Holding, LLC		Delaware
Irvine Imports, Inc.	AutoNation Toyota Irvine	California
Jacksonville ANUSA, LLC		Delaware
Jemautco, Inc.		Ohio
Jerry Gleason Chevrolet, Inc.		Illinois
Jim Quinlan Chevrolet Co.	AutoNation Chevrolet South Clearwater; AutoNation Part Center	Delaware
JLR Luxury Imports of Fremont, Inc.		Delaware
Joe MacPherson Ford	AutoNation Ford Tustin	California
Joe MacPherson Imports No. I		California
Joe MacPherson Infiniti	AutoNation Infiniti Tustin	California
Joe MacPherson Infiniti Holding, LLC		Delaware
John M. Lance Ford, LLC	AutoNation Ford Westlake; AutoNation Collision Center Westlake	Delaware
J-R Motors Company North	AutoNation Honda 104	Colorado
J-R Motors Company South	AutoNation Toyota Arapahoe	Colorado
JRJ Investments, Inc.	Audi Las Vegas; BMW of Henderson; BMW of Las Vegas; MINI of Las Vegas; AutoNation Volkswagen Las Vegas	Nevada
Katy ANUSA, LLC	AutoNation ANUSA Katy	Delaware

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
Kenyon Dodge, Inc.		Florida
King's Crown Ford, Inc.	AutoNation Ford Jacksonville	Delaware
L.P. Evans Motors WPB, Inc.	Mercedes-Benz of Miami	Florida
L.P. Evans Motors, Inc.	AutoNation Nissan Miami	Florida
Lance Children, Inc.		Ohio
Las Vegas ANUSA, LLC		Delaware
Leesburg Imports, LLC	AutoNation Honda Dulles	Delaware
Leesburg Motors, LLC	AutoNation Toyota Leesburg	Delaware
Les Marks Chevrolet, Inc.		Texas
Lew Webb's Ford, Inc.		California
Lew Webb's Irvine Nissan Holding, LLC		Delaware
Lew Webb's Irvine Nissan, Inc.		California
Lewisville Collision, Inc.		Delaware
Lewisville Imports GP, LLC		Delaware
Lewisville Imports, Ltd.	AutoNation Honda Lewisville	Texas
Lot 4 Real Estate Holdings, LLC		Delaware
Luxury Orlando Imports, Inc.	Audi South Orlando	Delaware
Luxury Woodlands Imports, Inc.	BMW of the Woodlands	Delaware
MacHoward Leasing		California
MacHoward Leasing Holding, LLC		Delaware
MacPherson Enterprises, Inc.		California
Magic Acquisition Corp.	AutoNation Ford Valencia	Delaware
Magic Acquisition Holding, LLC		Delaware
Maitland Luxury Imports, Inc.	Porsche of Orlando	Delaware
Marks Family Dealerships, Inc.		Texas
Marks Transport, Inc.	AutoNation Toyota Gulf Freeway	Texas
MC/RII, LLC		Ohio
Mealey Holdings, Inc.		Florida
Mesa Collision, Inc.	AutoNation Collision Center Mesa	Delaware
Miami Luxury Imports, Inc.		Delaware
Midway Chevrolet, Inc.		Texas
Mike Hall Chevrolet, Inc.		Delaware
Mike Shad Chrysler Plymouth Jeep Eagle, Inc.		Florida
Mike Shad Ford, Inc.	AutoNation Ford Orange Park; AutoNation Lincoln Orange Park; AutoNation Collision Center Orange Park	Florida
Mission Blvd. Motors, Inc.		California
Mobile Imports, LLC		Delaware
Mortimer Collision, LLC		Delaware
Mr. Wheels Holding, LLC		Delaware
Mr. Wheels, Inc.	AutoNation Toyota Cerritos	California
Mullinax East, LLC	AutoNation Ford East	Delaware
Mullinax Ford North Canton, Inc.	AutoNation Ford North Canton; AutoNation Collision Center North Canton	Ohio
Mullinax Ford South, Inc.	AutoNation Ford Margate; AutoNation Collision Center Margate	Florida
Mullinax Insurance Agency		Ohio
Mullinax Used Cars, Inc.		Ohio
Naperville Imports, Inc.	Mercedes-Benz of Naperville	Delaware
Newport Beach Cars Holding, LLC		Delaware

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
Newport Beach Cars, LLC	Newport Auto Center; Porsche Newport Beach; Bentley Newport Beach	Delaware
Nichols Ford, Ltd.	AutoNation Ford South Fort Worth; AutoNation Collision Center Fort Worth	Texas
Nichols GP, LLC		Delaware
Nissan of Brandon, Inc.		Florida
North Austin ANUSA, LLC		Delaware
Northpoint Chevrolet, LLC		Delaware
Northwest Financial Group, Inc.	BMW of Bellevue	Washington
NY LNR Luxury Imports, Inc.	Jaguar Land Rover New Rochelle	Delaware
NY Luxury Motors of Mt. Kisco, Inc.	Land Rover Mt. Kisco	Delaware
NY MT. Kisco Luxury Imports, Inc.	BMW of Mt. Kisco	Delaware
NY Palisades Luxury Imports, Inc.		Delaware
NY White Plains Luxury Imports, Inc.	Jaguar Land Rover White Plains	Delaware
Owings Mills Luxury Imports, LLC	Audi Owings Mills	Delaware
Oxnard European Motors, LLC		Delaware
Oxnard Venture Holdings, Inc.		Delaware
Payton-Wright Ford Sales, Inc.		Texas
Pembroke Motors, Inc.	AutoNation Chrysler Dodge Jeep Ram Pembroke Pines	Delaware
Peyton Cramer Automotive	AutoNation Acura South Bay	California
Peyton Cramer Automotive Holding, LLC		Delaware
Peyton Cramer F. Holding, LLC		Delaware
Peyton Cramer Ford	AutoNation Ford Torrance	California
Peyton Cramer Infiniti		California
Peyton Cramer Infiniti Holding, LLC		Delaware
Peyton Cramer Jaguar		California
Peyton Cramer LM Holding, LLC		Delaware
Phoenix ANUSA, LLC	AutoNation USA Phoenix	Delaware
Phoenix Avondale ANUSA, LLC	AutoNation USA Phoenix Avondale	Delaware
Pierce Automotive Corporation		Arizona
Pierce, LLC	AutoNation Toyota Tempe	Delaware
Pitre Chrysler-Plymouth-Jeep of Scottsdale, Inc.		Delaware
Plains Chevrolet GP, LLC		Delaware
Plains Chevrolet, Ltd.	AutoNation Chevrolet Amarillo	Texas
Plano ANUSA, LLC		Delaware
Plano Collision, Inc.	AutoNation Collision Center Plano	Delaware
Port City Imports, Inc.	AutoNation Honda South Corpus Christi	Texas
Prime Auto Cosmetics, Inc.	AutoNation Reconditioning Services	Delaware
Prime Auto Resources, Inc.	AutoNation Auto Auction; AutoNation Auto Auction Orlando; AutoNation Auto Auction Houston; AutoNation Auto Auction Atlanta	California
Quality Nissan GP, LLC		Delaware
Quinlan Motors, Inc.		Florida
R. Coop Limited		Colorado
R.L. Buscher II, Inc.		Colorado
R.L. Buscher III, Inc.		Colorado
Raleigh ANUSA, LLC		Delaware
Real Estate Holdings, Inc.		Florida
Renton H Imports, Inc.	AutoNation Honda Renton	Delaware

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
Republic Resources Company		Delaware
Republic Risk Management Services, Inc.		Florida
Resources Aviation, Inc.		Florida
RI Merger Corp.		Colorado
RI/BB Acquisition Corp.	AutoNation Collision Center East Colonial; AutoNation Collision Center Oviedo; AutoNation Collision Center North; AutoNation Collision Center Airport	Delaware
RI/BBNM Acquisition Corp.		Arizona
RI/Hollywood Nissan Acquisition Corp.	AutoNation Nissan Pembroke Pines	Delaware
RI/LLC Acquisition Corp.		Colorado
RI/RMC Acquisition GP, LLC		Delaware
RI/RMC Acquisition, Ltd.	AutoNation Chevrolet West Austin	Texas
RI/RMT Acquisition GP, LLC		Delaware
RI/RMT Acquisition, Ltd.	AutoNation Toyota South Austin; AutoNation Collision Center Austin	Texas
RI/WFI Acquisition Corporation		Delaware
RKR Motors, Inc.	Mercedes-Benz of Pompano	Florida
Rockville Luxury Imports, LLC	BMW of Rockville; AutoNation Collision Center Rockville	Delaware
Roseville Motor Corporation	AutoNation Chrysler Dodge Jeep Ram Roseville	California
Roseville Motor Holding, LLC		Delaware
Sacramento Collision, Inc.		Delaware
Sahara Imports, Inc.	AutoNation Honda East Las Vegas	Nevada
Sahara Nissan, Inc.	AutoNation Nissan Las Vegas	Nevada
Salt Lake ANUSA, LLC		Delaware
San Antonio ANUSA, LLC	AutoNation USA San Antonio	Delaware
SC-HYG Imports, Inc.	AutoNation Hyundai Columbia; Genesis of West Columbia	Delaware
SC-JLR Luxury Imports, Inc.	Jaguar Land Rover Columbia	Delaware
Shamrock F. Holding, LLC		Delaware
Six Jays LLC		Colorado
SMI Motors Holding, LLC		Delaware
SMI Motors, Inc.		California
South Broadway Motors, LLC	AutoNation Chrysler Jeep Broadway	Delaware
Southwest Motors of Denver, LLC	AutoNation Chrysler Dodge Jeep Ram Southwest	Delaware
St. Louis ANUSA, LLC		Delaware
Star Motors, LLC	Mercedes-Benz of Fort Lauderdale	Delaware
Steakley Chevrolet GP, LLC		Delaware
Steakley Chevrolet, Ltd.		Texas
Steve Moore Chevrolet Delray, LLC		Delaware
Steve Moore Chevrolet, LLC	AutoNation Chevrolet Greenacres; AutoNation Collision Center Greenacres	Delaware
Stevens Creek Holding, LLC		Delaware
Stevens Creek Luxury Imports Holding, LLC		Delaware
Stevens Creek Luxury Imports, Inc.	AutoNation Maserati Stevens Creek; AutoNation Alfa Romeo Stevens Creek	Delaware
Stevens Creek Motors, Inc.	AutoNation Acura Stevens Creek	California
Sunrise Nissan of Jacksonville, Inc.		Florida
Sunrise Nissan of Orange Park, Inc.		Florida

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
Sunset Pontiac-GMC Truck South, Inc.		Florida
Sunset Pontiac-GMC, Inc.		Michigan
Sutherlin Chrysler-Plymouth Jeep-Eagle, LLC		Delaware
Sutherlin H. Imports, LLC	AutoNation Honda Thornton Road	Delaware
Sutherlin Imports, LLC	AutoNation Toyota Pinellas Park; AutoNation Collision Center St. Petersburg	Delaware
Sutherlin Nissan, LLC		Delaware
Tasha Incorporated		California
Tempe Auto Imports, Inc.		Delaware
Tempe Body Shop, Inc.		Delaware
Terry York Motor Cars Holding, LLC		Delaware
Terry York Motor Cars, Ltd.	Land Rover Encino	California
Texan Ford Sales, Ltd.	AutoNation Ford Arlington; AutoNation Collision Center Arlington	Texas
Texan Ford, Inc.	AutoNation Ford Katy; AutoNation Collision Center Katy	Texas
Texan Sales GP, LLC		Delaware
Texas Management Companies LP, LLC		Delaware
The Pierce Corporation II, Inc.		Arizona
Tier2 Corporation		Delaware
Tinley Park A. Imports, Inc.		Delaware
Tinley Park J. Imports, Inc.		Delaware
Tinley Park V. Imports, Inc.		Delaware
TMDLR Motors, Inc.		Delaware
TN CDJR Motors, LLC	AutoNation Chrysler Dodge Jeep Ram and FIAT Johnson City	Delaware
TN F Imports, LLC		Delaware
Torrance Nissan Holding, LLC		Delaware
Torrance Nissan, LLC		Delaware
Tousley Ford, Inc.	AutoNation Ford White Bear Lake	Minnesota
Towson Luxury Imports, LLC	BMW of Towson; BMW of Bel Air; MINI of Towson; AutoNation Collision Center Towson	Delaware
Triangle Corporation		Delaware
TSDLR Imports, Inc.		Delaware
Tucson Collision, Inc.		Delaware
T-West Sales & Service, Inc.	AutoNation Toyota Las Vegas	Nevada
TX Alliance Motors, Inc.	AutoNation Chrysler Dodge Jeep Ram North Fort Worth; AutoNation Collision Center Alliance	Texas
TX Ennis Autoplex Motors, Inc.		Texas
TX Motors of North Richland Hills, Inc.	AutoNation Chrysler Dodge Jeep Ram North Richland Hills; AutoNation Hyundai North Richland Hills; AutoNation Collision Center North Richland Hills	Delaware
TX Motors on Katy Freeway, Inc.	AutoNation Chrysler Dodge Jeep Ram Katy; AutoNation Collision Center Katy West	Texas
TX Motors on Southwest Loop, Inc.		Texas
TX West Houston Motors, Inc.	AutoNation Chrysler Dodge Jeep Ram Houston	Texas
TX-CC Dallas, Inc.	AutoNation Collision Center Maple	Delaware
TX-CC Galleria, Inc.	AutoNation Collision Center Galleria	Delaware
TX-CC Spring, Inc.	AutoNation Collision Center Spring	Delaware
Valencia Auto Imports Holding, LLC		Delaware

Exhibit 21.1

Legal Entity	Current DBA(s)	State of Organization
Valencia B. Imports Holding, LLC		Delaware
Valencia B. Imports, Inc.	Valencia BMW	Delaware
Valencia Dodge		California
Valencia Dodge Holding, LLC		Delaware
Valencia H. Imports Holding, LLC		Delaware
Valencia H. Imports, Inc.	AutoNation Honda Valencia	Delaware
Valley Chevrolet, LLC	AutoNation Chevrolet Timonium	Delaware
Vanderbeek Motors Holding, LLC		Delaware
Vanderbeek Motors, Inc.	AutoNation Subaru Roseville; BMW of Roseville	California
Vanderbeek Olds/GMC Truck, Inc.		California
Vanderbeek Truck Holding, LLC		Delaware
Village Motors, LLC	AutoNation Toyota Libertyville	Delaware
Vince Wiese Chevrolet, Inc.	AutoNation Chevrolet Valencia	Delaware
Vince Wiese Holding, LLC		Delaware
VistaCal Luxury Imports, Inc.	BMW of Vista	Delaware
W.O. Bankston Nissan, Inc.		Texas
Wallace Dodge, LLC		Delaware
Wallace Ford, LLC	AutoNation Collision Center Delray	Delaware
Wallace Lincoln-Mercury, LLC		Delaware
Wallace Nissan, LLC		Delaware
Webb Automotive Group, Inc.		California
West Colorado Motors, LLC	AutoNation Chrysler Jeep West; AutoNation Buick GMC Park Meadows; AutoNation Buick GMC West; AutoNation Subaru Arapahoe	Delaware
West Houston Luxury Imports, Inc.	Jaguar Land Rover West Houston	Delaware
West Side Motors, Inc.	AutoNation Honda West Knoxville	Tennessee
Westgate Chevrolet GP, LLC		Delaware
Westgate Chevrolet, Ltd.	AutoNation Chevrolet West Amarillo; AutoNation Cadillac West Amarillo	Texas
Westmont A. Imports, Inc.	Audi Westmont	Delaware
Westmont B. Imports, Inc.	Laurel BMW of Westmont	Delaware
Westmont Collision, Inc.	AutoNation Collision Center Westmont	Delaware
Westmont M. Imports, Inc.	Mercedes-Benz of Westmont	Delaware
Wichita ANUSA, LLC		Delaware
Woody Capital Investment Company II		Colorado
Woody Capital Investment Company III		Colorado
Working Man's Credit Plan, Inc.		Texas
WPB Collision, Inc.		Delaware

EX-23.1

Exhibit 23.1

Consent of Independent Registered Public Accounting Firm

We consent to the incorporation by reference in the registration statements listed below, of our reports dated February 17, 2022, with respect to the consolidated financial statements of AutoNation, Inc. and subsidiaries and the effectiveness of internal control over financial reporting.

•Form S-3 Registration No. 333-229818;

•Form S-4 Registration Nos. 333-41505 and 333-17915; and

•Form S-8 Registration Nos. 333-216482, 333-214308, 333-195706, 333-170737, 333-150756, 333-143250, 333-130019, 333-29265, and 033-93742

/s/ KPMG LLP

Fort Lauderdale, Florida

February 17, 2022

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Michael Manley, certify that:

1. I have reviewed this Annual Report on Form 10-K of AutoNation, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/S/ MICHAEL MANLEY

Michael Manley

Chief Executive Officer and Director

Date: February 17, 2022

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Joseph T. Lower, certify that:

1. I have reviewed this Annual Report on Form 10-K of AutoNation, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/    JOSEPH T. LOWER

Joseph T. Lower

Executive Vice President and Chief Financial Officer

Date: February 17, 2022

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of AutoNation, Inc. (the “Company”) for the year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission (the “Report”), I, Michael Manley, Chief Executive Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/S/ MICHAEL MANLEY

Michael Manley

Chief Executive Officer and Director

February 17, 2022

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Annual Report on Form 10-K of AutoNation, Inc. (the “Company”) for the year ended December 31, 2021, as filed with the U.S. Securities and Exchange Commission (the “Report”), I, Joseph T. Lower, Executive Vice President and Chief Financial Officer of the Company, hereby certify, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that, to my knowledge:

(1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

(2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/    JOSEPH T. LOWER

Joseph T. Lower

Executive Vice President and Chief Financial Officer

February 17, 2022

XML

Document and Entity Information - USD ($) $ in Billions	12 Months Ended
	Dec. 31, 2021	Feb. 15, 2022	Jun. 30, 2021
Document And Entity Information [Abstract]
Document Annual Report	true
Document Type	10-K
Document Period End Date	Dec. 31, 2021
Document Fiscal Period Focus	FY
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Transition Report	false
Entity Central Index Key	0000350698
Entity File Number	1-13107
Entity Registrant Name	AUTONATION, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	73-1105145
Entity Address, Address Line One	200 SW 1st Ave
Entity Address, City or Town	Fort Lauderdale
Entity Address, State or Province	FL
Entity Address, Postal Zip Code	33301
Amendment Flag	false
City Area Code	(954)
Local Phone Number	769-6000
Title of 12(b) Security	Common Stock, Par Value $0.01 Per Share
Trading Symbol	AN
Security Exchange Name	NYSE
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
ICFR Auditor Attestation Flag	true
Entity Shell Company	false
Entity Public Float			$ 4.5
Entity Common Stock, Shares Outstanding		61,671,559
Documents Incorporated by Reference	Portions of the registrant’s Proxy Statement relating to its 2022 Annual Meeting of Stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December 31, 2021 are incorporated herein by reference in Part III.
Auditor Name	KPMG LLP
Auditor Location	Fort Lauderdale, FL
Auditor Firm ID	185

XML

Consolidated Balance Sheets - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
CURRENT ASSETS:
Cash and cash equivalents	$ 60.4	$ 569.6
Receivables, net	730.0	845.2
Inventory	1,847.9	2,598.5
Other current assets	173.4	139.4
Total Current Assets	2,811.7	4,152.7
PROPERTY AND EQUIPMENT, NET	3,419.5	3,138.1
OPERATING LEASE ASSETS	284.0	309.5
GOODWILL	1,235.3	1,185.0
OTHER INTANGIBLE ASSETS, NET	743.5	521.5
OTHER ASSETS	449.6	580.4
Total Assets	8,943.6	9,887.2
CURRENT LIABILITIES:
Vehicle floorplan payable	1,457.6	2,759.9
Accounts payable	395.9	335.2
Commercial paper	340.0	0.0
Current maturities of long-term debt	12.2	309.2
Accrued payroll and benefits	279.9	225.8
Other current liabilities	574.2	535.8
Total Current Liabilities	3,059.8	4,165.9
LONG-TERM DEBT, NET OF CURRENT MATURITIES	2,846.2	1,792.6
NONCURRENT OPERATING LEASE LIABILITIES	260.1	286.5
DEFERRED INCOME TAXES	78.2	95.9
OTHER LIABILITIES	322.3	310.6
COMMITMENTS AND CONTINGENCIES (Note 20)
SHAREHOLDERS' EQUITY:
Common stock, par value $0.01 per share; 1,500,000,000 shares authorized; 86,562,149 shares issued at December 31, 2021, and 102,562,149 shares issued at December 31, 2020, including shares held in treasury	0.8	1.0
Additional paid-in capital	3.2	53.1
Retained earnings	4,639.9	4,069.4
Treasury stock, at cost; 23,951,543 and 19,078,620 shares held, respectively	(2,266.9)	(887.8)
Total Shareholders' Equity	2,377.0	3,235.7
Total Liabilities and Shareholders' Equity	$ 8,943.6	$ 9,887.2
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock authorized (in shares)	1,500,000,000	1,500,000,000
Common stock issued (in shares)	86,562,149	102,562,149
Treasury stock (in shares)	23,951,543	19,078,620
Trade [Member]
CURRENT LIABILITIES:
Vehicle floorplan payable	$ 489.9	$ 1,541.7
Non-Trade [Member]
CURRENT LIABILITIES:
Vehicle floorplan payable	$ 967.7	$ 1,218.2

XML

Consolidated Statements of Income - USD ($) shares in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue:
TOTAL REVENUE	$ 25,844,000,000	$ 20,390,000,000	$ 21,335,700,000
Cost of Sales:
TOTAL COST OF SALES (excluding depreciation shown below)	20,891,400,000	16,823,600,000	17,812,700,000
Gross Profit:
TOTAL GROSS PROFIT	4,952,600,000	3,566,400,000	3,523,000,000
Selling, general, and administrative expenses	2,876,200,000	2,422,000,000	2,558,600,000
Depreciation and amortization	193,300,000	198,900,000	180,500,000
Goodwill impairment	0	318,300,000	0
Franchise rights impairment	0	57,500,000	9,600,000
Other (income) expense, net	(19,700,000)	6,500,000	(49,300,000)
OPERATING INCOME	1,902,800,000	563,200,000	823,600,000
Non-operating income (expense) items:
Floorplan interest expense	(25,700,000)	(63,800,000)	(138,400,000)
Other interest expense	(93,000,000.0)	(93,700,000)	(106,700,000)
Other income, net	24,300,000	144,400,000	34,100,000
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	1,808,400,000	550,100,000	612,600,000
Income tax provision	435,100,000	168,300,000	161,800,000
NET INCOME FROM CONTINUING OPERATIONS	1,373,300,000	381,800,000	450,800,000
Loss from discontinued operations, net of income taxes	(300,000)	(200,000)	(800,000)
Net income	$ 1,373,000,000	$ 381,600,000	$ 450,000,000.0
BASIC EARNINGS (LOSS) PER SHARE:
Continuing operations (in dollars per share)	$ 18.51	$ 4.32	$ 5.00
Discontinued operations (in dollars per share)	0	0	(0.01)
Net income (in dollars per share)	$ 18.50	$ 4.32	$ 4.99
Weighted average common shares outstanding, basic (in shares)	74.2	88.3	90.1
DILUTED EARNINGS (LOSS) PER SHARE:
Continuing operations (in dollars per share)	$ 18.31	$ 4.30	$ 4.98
Discontinued operations (in dollars per share)	0	0	(0.01)
Net income (in dollars per share)	$ 18.31	$ 4.30	$ 4.97
Weighted average common shares outstanding (in shares)	75.0	88.7	90.5
COMMON SHARES OUTSTANDING, net of treasury stock, at period end (in shares)	62.6	83.5	89.3
New Vehicle [Member]
Revenue:
TOTAL REVENUE	$ 12,081,700,000	$ 10,418,600,000	$ 11,166,500,000
Cost of Sales:
TOTAL COST OF SALES (excluding depreciation shown below)	10,880,100,000	9,834,500,000	10,662,600,000
Gross Profit:
TOTAL GROSS PROFIT	1,201,600,000	584,100,000	503,900,000
Used Vehicle [Member]
Revenue:
TOTAL REVENUE	8,638,800,000	5,601,300,000	5,466,500,000
Cost of Sales:
TOTAL COST OF SALES (excluding depreciation shown below)	7,950,700,000	5,142,300,000	5,098,500,000
Gross Profit:
TOTAL GROSS PROFIT	688,100,000	459,000,000.0	368,000,000.0
Parts and Service [Member]
Revenue:
TOTAL REVENUE	3,706,600,000	3,257,400,000	3,572,100,000
Cost of Sales:
TOTAL COST OF SALES (excluding depreciation shown below)	2,033,900,000	1,796,600,000	1,949,500,000
Gross Profit:
TOTAL GROSS PROFIT	1,672,700,000	1,460,800,000	1,622,600,000
Finance and Insurance, Net [Member]
Revenue:
TOTAL REVENUE	1,384,500,000	1,059,300,000	1,023,300,000
Gross Profit:
TOTAL GROSS PROFIT	1,384,500,000	1,059,300,000	1,023,300,000
Product and Service, Other [Member]
Revenue:
TOTAL REVENUE	32,400,000	53,400,000	107,300,000
Cost of Sales:
TOTAL COST OF SALES (excluding depreciation shown below)	26,700,000	50,200,000	102,100,000
Gross Profit:
TOTAL GROSS PROFIT	$ 5,700,000	$ 3,200,000	$ 5,200,000

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Consolidated Statements of Shareholders' Equity - USD ($) $ in Millions	Total	Cumulative Effect, Period of Adoption, Adjustment [Member]	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect, Period of Adoption, Adjustment [Member]	Treasury Stock [Member]
BALANCE, Shares at Dec. 31, 2018			102,562,149
BALANCE, Amount at Dec. 31, 2018	$ 2,716.0		$ 1.0	$ 20.8	$ 3,238.3		$ (544.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	450.0				450.0
Repurchases of common stock	(44.7)						(44.7)
Stock-based compensation expense	31.1			31.1
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	9.7			(16.0)			25.7
BALANCE, Shares at Dec. 31, 2019			102,562,149
BALANCE, Amount at Dec. 31, 2019	3,162.1	$ (0.5)	$ 1.0	35.9	3,688.3	$ (0.5)	(563.1)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	381.6				381.6
Repurchases of common stock	(382.3)						(382.3)
Stock-based compensation expense	30.2			30.2
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	44.6			(13.0)			57.6
BALANCE, Shares at Dec. 31, 2020			102,562,149
BALANCE, Amount at Dec. 31, 2020	3,235.7		$ 1.0	53.1	4,069.4		(887.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	1,373.0				1,373.0
Repurchases of common stock	(2,303.2)						(2,303.2)
Treasury stock cancellation, Shares			(16,000,000)
Treasury stock cancellation	0.0		$ (0.2)	(40.6)	(797.2)		838.0
Stock-based compensation expense	35.0			35.0
Shares awarded under stock-based compensation plans, net of shares withheld for taxes	36.5			(44.3)	(5.3)		86.1
BALANCE, Shares at Dec. 31, 2021			86,562,149
BALANCE, Amount at Dec. 31, 2021	$ 2,377.0		$ 0.8	$ 3.2	$ 4,639.9		$ (2,266.9)

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Consolidated Statements of Cash Flows - USD ($)	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES:
Net income	$ 1,373,000,000	$ 381,600,000	$ 450,000,000.0
Adjustments to reconcile net income to net cash provided by operating activities:
Loss from discontinued operations	300,000	200,000	800,000
Depreciation and amortization	193,300,000	198,900,000	180,500,000
Amortization of debt issuance costs and accretion of debt discounts	4,900,000	4,700,000	5,200,000
Stock-based compensation expense	35,000,000.0	30,200,000	31,100,000
Deferred income tax provision (benefit)	(17,400,000)	(38,900,000)	45,800,000
Net gain on asset sales and dispositions	(18,100,000)	(7,900,000)	(44,900,000)
Goodwill impairment	0	318,300,000	0
Franchise rights impairment	0	57,500,000	9,600,000
Other non-cash impairment charges	3,200,000	14,700,000	2,200,000
Gain on equity investments	(10,900,000)	(131,500,000)	(25,700,000)
Other	(13,300,000)	(11,000,000.0)	(6,800,000)
(Increase) decrease, net of effects from business combinations and divestitures:
Receivables	114,900,000	70,000,000.0	56,200,000
Inventory	800,400,000	703,600,000	296,000,000.0
Other assets	92,200,000	85,600,000	49,500,000
Increase (decrease), net of effects from business combinations and divestitures:
Vehicle floorplan payable-trade	(1,059,700,000)	(579,300,000)	(240,600,000)
Accounts payable	57,200,000	47,700,000	(17,600,000)
Other liabilities	73,000,000.0	63,200,000	(22,100,000)
Net cash provided by continuing operations	1,628,000,000	1,207,600,000	769,200,000
Net cash used in discontinued operations	(300,000)	0	0
Net cash provided by operating activities	1,627,700,000	1,207,600,000	769,200,000
CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES:
Purchases of property and equipment	(215,700,000)	(156,000,000.0)	(269,300,000)
Proceeds from the disposal of assets held for sale	37,100,000	16,400,000	38,000,000.0
Insurance recoveries on property and equipment	2,000,000.0	1,900,000	3,500,000
Cash used in business acquisitions, net of cash acquired	(432,700,000)	(400,000)	(4,700,000)
Cash received from business divestitures, net of cash relinquished	48,700,000	9,000,000.0	115,600,000
Proceeds from Sale of Equity Securities	109,400,000	105,400,000	0
Investment in equity securities	(5,500,000)	(50,000,000.0)	0
Other	(3,600,000)	0	1,100,000
Net cash used in continuing operations	(460,300,000)	(73,700,000)	(115,800,000)
Net cash used in discontinued operations	0	0	0
Net cash used in investing activities	(460,300,000)	(73,700,000)	(115,800,000)
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Repurchases of common stock	(2,318,200,000)	(367,200,000)	(44,700,000)
Proceeds from revolving credit facilities	0	1,110,000,000	0
Payments of revolving credit facilities	0	(1,110,000,000)	0
Net proceeds from (payments of) commercial paper	340,000,000.0	(170,000,000.0)	(460,000,000.0)
Payment of debt issuance costs	(8,000,000.0)	(11,000,000.0)	0
Net payments of vehicle floorplan payable - non-trade	(263,900,000)	(233,300,000)	(134,300,000)
Payment of other debt obligations	(10,900,000)	(17,200,000)	(31,000,000.0)
Proceeds from the exercise of stock options	54,500,000	52,700,000	12,700,000
Payments of tax withholdings for stock-based awards	(18,000,000.0)	(8,100,000)	(3,000,000.0)
Net cash used in continuing operations	(1,676,500,000)	(606,700,000)	(660,300,000)
Net cash used in discontinued operations	0	0	0
Net cash used in financing activities	(1,676,500,000)	(606,700,000)	(660,300,000)
INCREASE (DECREASE) IN CASH, CASH EQUIVALENTS, AND RESTRICTED CASH	(509,100,000)	527,200,000	(6,900,000)
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at beginning of year	569,700,000	42,500,000	49,400,000
CASH, CASH EQUIVALENTS, AND RESTRICTED CASH at end of year	60,600,000	569,700,000	42,500,000
Senior Notes at One Point Nine Five Percent Due 2028
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Proceeds from Senior Notes	399,200,000	0	0
Senior Notes at Two Point Four Percent Due 2031
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Proceeds from Senior Notes	448,800,000	0
Senior Notes at Four Point Seven Five Percent Due 2030
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Proceeds from Senior Notes	0	497,400,000	0
Senior Notes at Three Point Three Five Percent Due 2021
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Payment of Senior Notes	(300,000,000.0)	0	0
Senior Notes at Five Point Five Percent Due 2020
CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES:
Payment of Senior Notes	$ 0	$ (350,000,000.0)	$ 0

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Cash Flow Information

12 Months Ended

Dec. 31, 2021

Supplemental Cash Flow Information [Abstract]

Cash Flow Information

CASH FLOW INFORMATION

Cash, Cash Equivalents, and Restricted Cash

The following table provides a reconciliation of cash and cash equivalents reported on our Consolidated Balance Sheets to the total amounts, which include cash, cash equivalents, and restricted cash, reported on our Consolidated Statements of Cash Flows:

	Years Ended December 31,
	2021		2020
Cash and cash equivalents	$	60.4	$	569.6
Restricted cash included in Other Current Assets	0.2		0.1
Total cash, cash equivalents, and restricted cash	$	60.6	$	569.7

Non-Cash Investing and Financing Activities

We had accrued purchases of property and equipment of $25.9 million at December 31, 2021, $9.6 million at December 31, 2020, and $29.4 million at December 31, 2019. We had non-cash investing and financing activities related to increases in property and equipment acquired under financing agreements of $1.7 million during 2020 and $3.3 million during 2019. See Note 8 of the Notes to Consolidated Financial Statements for supplemental noncash information on adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new lease liabilities.

Interest and Income Taxes Paid

We made interest payments, net of amounts capitalized and including interest on vehicle inventory financing, of $113.9 million in 2021, $164.2 million in 2020, and $243.1 million in 2019. We made income tax payments, net of income tax refunds, of $458.3 million in 2021, $190.2 million in 2020, and $107.5 million in 2019.

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Description of Business and Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Description of Business and Summary of Significant Accounting Policies

DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Organization and Business

AutoNation, Inc., through its subsidiaries, is the largest automotive retailer in the United States. As of December 31, 2021, we owned and operated 339 new vehicle franchises from 247 stores located in the United States, predominantly in major metropolitan markets in the Sunbelt region. Our stores sell 33 different new vehicle brands. The core brands of new vehicles that we sell, representing approximately 90% of the new vehicles that we sold in 2021, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, Stellantis, Mercedes-Benz, BMW, and Volkswagen (including Audi and Porsche). As of December 31, 2021, we also owned and operated 57 AutoNation-branded collision centers, 9 AutoNation USA used vehicle stores, 4 AutoNation-branded automotive auction operations, and 3 parts distribution centers.

We offer a diversified range of automotive products and services, including new vehicles, used vehicles, “parts and service” (also referred to as “After-Sales”), which includes automotive repair and maintenance services as well as wholesale parts and collision businesses, and automotive “finance and insurance” products (also referred to as “Customer Financial Services”), which include vehicle service and other protection products, as well as the arranging of financing for vehicle purchases through third-party finance sources. For convenience, the terms “AutoNation,” “Company,” and “we” are used to refer collectively to AutoNation, Inc. and its subsidiaries, unless otherwise required by the context. Our dealership operations are conducted by our subsidiaries.

Basis of Presentation

The accompanying Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries. All of our automotive dealership subsidiaries are indirectly wholly owned by the parent company, AutoNation, Inc. Intercompany accounts and transactions have been eliminated in the consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ materially from these estimates. We periodically evaluate estimates and assumptions used in the preparation of the financial statements and make changes on a prospective basis when adjustments are necessary. Such estimates and assumptions affect, among other things, our goodwill, indefinite-lived intangible asset, and long-lived asset valuations; inventory valuation; equity investment valuation; assets held for sale; accruals for chargebacks against revenue recognized from the sale of finance and insurance products; accruals related to self-insurance programs; certain legal proceedings; assessment of the annual income tax expense; deferred income taxes and income tax contingencies; the allowance for expected credit losses; and measurement of performance-based compensation costs.

Cash and Cash Equivalents

We consider all highly liquid investments with a maturity of three months or less as of the date of purchase to be cash equivalents unless the investments are legally or contractually restricted for more than three months. Under our cash management system, outstanding checks that are in excess of the cash balances at certain banks are included in Accounts Payable in the Consolidated Balance Sheets and changes in these amounts are reflected in operating cash flows in the accompanying Consolidated Statements of Cash Flows.

Inventory

Inventory consists primarily of new and used vehicles held for sale, valued at the lower of cost or net realizable value using the specific identification method. Cost includes acquisition, reconditioning, dealer installed accessories, and transportation expenses. Our new vehicle inventory costs are generally reduced by manufacturer holdbacks (percentage of either the manufacturer’s suggested retail price or invoice price of a new vehicle that the manufacturer repays to the dealer), incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising assistance. Parts, accessories, and other inventory are valued at the lower of cost or net realizable value. See Note 5 of the Notes to Consolidated Financial Statements for more detailed information about our inventory.

Property and Equipment, net

Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. In addition, we capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and depreciated over the estimated useful lives of the assets. Leased property meeting certain criteria is capitalized as a finance lease right-of-use asset and the present value of the related lease payments is recorded as a liability and included in current and/or long-term debt based on the lease term. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in Other (Income) Expense, Net (within Operating Income) in the Consolidated Statements of Income. See Note 6 of the Notes to Consolidated Financial Statements for detailed information about our property and equipment.

Depreciation is recorded over the estimated useful lives of the assets involved using the straight-line method. Leasehold improvements and finance lease right-of-use assets are amortized to depreciation expense over the estimated useful life of the asset or the respective lease term used in determining lease classification, whichever is shorter. The range of estimated useful lives is as follows:

Buildings and improvements    5 to 40 years

Furniture, fixtures, and equipment    3 to 10 years

We continually evaluate property and equipment, including leasehold improvements, to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the remaining balance should be evaluated for possible impairment. Such events or changes may include a significant decrease in market value, a significant change in the business climate in a particular market, a current expectation that more-likely-than-not a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, or a current-period operating or cash flow loss combined with historical losses or projected future losses. We use an estimate of the related undiscounted cash flows over the remaining life of the asset (asset group) in assessing whether an asset (asset group) is recoverable. If the asset (asset group) is not recoverable, we determine the fair value of the asset (asset group) based on Level 3 inputs, and measure impairment losses based upon the amount by which the carrying amount of the asset (asset group) exceeds the fair value. If we recognize an impairment loss on a depreciable long-lived asset, the adjusted carrying amount of the asset becomes its new cost basis, which is depreciated over the remaining useful life of that asset.

When property and equipment are identified as held for sale, we reclassify the held for sale assets to Other Current Assets and cease recording depreciation. We measure each long-lived asset or disposal group at the lower of its carrying amount or fair value less cost to sell and recognize a loss for any initial adjustment of the long-lived asset’s or disposal group’s carrying amount to fair value less cost to sell in the period the “held for sale” criteria are met. Such valuations include estimations of fair values and incremental direct costs to transact a sale. The fair value measurements for our long-lived assets held for sale are based on Level 3 inputs, which consider information obtained from third-party real estate valuation sources, or, in certain cases, pending agreements to sell the related assets. We recognize an impairment loss if the amount of the asset’s or disposal group’s carrying amount exceeds the asset’s or disposal group’s estimated fair value less cost to sell.

Assets held for sale in both continuing operations and discontinued operations are reported in the “Corporate and other” category of our segment information. We had assets held for sale in continuing operations of $53.3 million at December 31, 2021, and $25.5 million at December 31, 2020. We had assets held for sale in discontinued operations of $1.1 million at December 31, 2021, and $8.0 million at December 31, 2020.

See Note 19 of the Notes to Consolidated Financial Statements for information about our fair value measurement valuation process and impairment charges that were recorded during 2021 and 2020.

Leases

We lease numerous facilities and various types of equipment relating to our operations. See Note 8 of the Notes to Consolidated Financial Statements for a discussion of our significant accounting policies related to leases.

Goodwill and Other Intangible Assets, net

Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so.

Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from three to thirty years.

We do not amortize goodwill or franchise rights assets. Goodwill and franchise rights are tested for impairment annually or more frequently when events or changes in circumstances indicate that impairment may have occurred.

During 2021, we did not record any goodwill or franchise rights impairment charges. During 2020, we recorded $318.3 million of goodwill impairment charges and $57.5 million of franchise rights impairment charges. These non-cash impairment charges are reflected as Goodwill Impairment and Franchise Rights Impairment, respectively, in the accompanying Consolidated Statements of Income.

See Note 7 of the Notes to Consolidated Financial Statements for more information about our goodwill and other intangible assets and Note 19 of the Notes to Consolidated Financial Statements for information about our annual impairment tests of goodwill and franchise rights.

Other Current Assets

Other current assets consist of various items, including, among other items, assets held for sale in continuing operations and discontinued operations, prepaid expenses, contract assets, and deposits.

Other Assets

Other assets consist of various items, including, among other items, service loaner and rental vehicle inventory, net, the cash surrender value of corporate-owned life insurance held in a Rabbi Trust for deferred compensation plan participants, and investments in equity securities.

Other Current Liabilities

Other current liabilities consist of various items payable within one year including, among other items, accruals for sales taxes, the current portions of finance and insurance chargeback liabilities, operating lease liabilities, contract liabilities, and deferred revenue, customer deposits, accrued expenses, and accrued interest payable.

Other Liabilities

Other liabilities consist of various items payable beyond one year including, among other items, the long-term portions of deferred compensation obligations, finance and insurance chargeback liabilities, contract liabilities, and self-insurance liabilities.

Employee Savings Plans

We offer a 401(k) plan to all of our associates and provided a matching contribution to certain associates that participate in the plan of $14.3 million in 2021, $4.5 million in 2020, and $15.0 million in 2019. Effective in April 2020, we suspended matching contributions to the 401(k) plan in light of the uncertain economic conditions resulting from the COVID-19 pandemic. A matching contribution to the 401k plan was reinstated effective January 2021. Employer matching contributions are subject to a three-year graded vesting period for associates hired subsequent to January 1, 2011, and are fully vested immediately upon contribution for associates hired prior to January 1, 2011.

We offer a deferred compensation plan (the “Plan”) to provide certain associates and non-employee directors with the opportunity to accumulate assets for retirement on a tax-deferred basis. Participants in the Plan are allowed to defer a portion of their compensation and are fully vested in their respective deferrals and earnings. Participants may choose from a variety of investment options, which determine their earnings credits. Effective in January 2021, we suspended matching contributions to the Plan, which were reinstated effective January 2022. We provided a matching contribution to employee participants in the Plan of $1.5 million for 2020 and $1.4 million for 2019. One-third of the matching contribution is vested and credited to participants on the first day of the subsequent calendar year, and an additional one-third vests and is credited on each of the first and second anniversaries of such date. We may also make discretionary contributions, which vest three years after the effective date of the discretionary contribution. The balances due to participants in the Plan were $117.2 million as of December 31, 2021, and $99.8 million as of December 31, 2020, and are included in Other Current Liabilities and Other Liabilities in the accompanying Consolidated Balance Sheets.

Stock-Based Compensation

We grant stock-based awards in the form of time-based and performance-based restricted stock units (“RSUs”), which are issued from our treasury stock upon vesting. Compensation cost for RSUs is based on the closing price of our common stock on the date of grant. Prior to 2017, we also granted stock options and restricted stock.

Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost for time-based RSUs, restricted stock awards, and stock options is recognized on a straight-line basis over the shorter of the stated vesting period or the period until associates become retirement-eligible. Compensation cost for performance-based RSUs is recognized over the requisite service period based on the expected achievement level of the performance goals, which is evaluated over the performance period. The amount of compensation cost recognized on performance-based RSUs depends on the relative satisfaction of the performance condition based on performance to date. We account for forfeitures of stock-based awards as they occur. See Note 14 of the Notes to Consolidated Financial Statements for more information about our stock-based compensation arrangements.

Revenue Recognition

Revenue consists of the sales of new and used vehicles, sales of parts and automotive services, commissions for the placement of finance and insurance products, and sales of other products. See Note 2 of the Notes to Consolidated Financial Statements for a discussion of our significant accounting policies related to revenue recognition.

Insurance

Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, employee medical benefits, automobile, and workers’ compensation. Costs in excess of this retained risk per claim may be insured under various contracts with third-party insurance carriers. We review our claim and loss history on a periodic basis to assist in assessing our future liability. The ultimate costs of these retained insurance risks are estimated by management and by third-party actuarial evaluation of historical claims experience, adjusted for current trends and changes in claims-handling procedures. See Note 11 of the Notes to Consolidated Financial Statements for more information on our self-insurance liabilities.

Manufacturer Incentives and Other Rebates

We receive various incentives from manufacturers based on achieving certain objectives, such as specified sales volume targets, as well as other objectives, including maintaining standards of a particular vehicle brand, which may include but are not limited to facility image and design requirements, customer satisfaction survey results, and training standards, among others. These incentives are typically based upon units purchased or sold. These manufacturer incentives are recognized as a reduction of new vehicle cost of sales when earned, generally at the time the related vehicles are sold or upon attainment of the particular program goals, whichever is later.

We also receive manufacturer rebates and assistance for holdbacks, floorplan interest, and non-reimbursement-based advertising expenses (described below), which are reflected as a reduction in the carrying value of each vehicle purchased by us. We recognize holdbacks, floorplan interest assistance, non-reimbursement-based advertising rebates, cash incentives, and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold.

Advertising

We generally expense the cost of advertising as incurred, net of earned manufacturer reimbursements for specific advertising costs and other discounts. Advertising expense, net of manufacturer advertising reimbursements, was $170.3 million in 2021, $161.7 million in 2020, and $187.8 million in 2019, and is reflected as a component of Selling, General, and Administrative Expenses in the accompanying Consolidated Statements of Income.

Manufacturer advertising rebates that are reimbursements of costs associated with specific advertising expenses are earned in accordance with the respective manufacturers’ reimbursement-based advertising assistance programs, which is typically after we have incurred the corresponding advertising expenses, and are reflected as a reduction of advertising expense. Manufacturer advertising reimbursements classified as an offset to advertising expenses were $51.4 million in 2021, $48.2 million in 2020, and $59.8 million in 2019. All other non-reimbursement-based manufacturer advertising rebates that are not associated with specific advertising expenses are recorded as a reduction of inventory and recognized as a reduction of new vehicle cost of sales in the period the related vehicle is sold.

Parts and Service Internal Profit

Our parts and service departments recondition the majority of used vehicles acquired by our used vehicle departments and perform preparatory work on new vehicles acquired by our new vehicle departments. The parts and service departments charge the new and used vehicle departments as if they were third parties in order to account for total activity performed by that department. Revenues and costs of sales associated with the internal work performed by our parts and service departments are reflected in our parts and service results in our Consolidated Statements of Income. New and used vehicle revenues and costs of sales are reduced by the amount of the intracompany charge. As a result, the revenues and

costs of sales associated with the internal work performed by our parts and service departments are eliminated in consolidation. We also defer internal profit associated with the internal work performed by our parts and service departments on our vehicle inventory until such vehicles have been sold.

Income Taxes

We file a consolidated federal income tax return. Deferred income taxes have been provided for temporary differences between the recognition of revenue and expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the financial statements. See Note 12 of the Notes to Consolidated Financial Statements for more detailed information related to income taxes.

Earnings Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested RSU awards. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options and unvested RSU awards. See Note 3 of the Notes to Consolidated Financial Statements for more information on the computation of earnings per share.

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Revenue Recognition

12 Months Ended

Dec. 31, 2021

Revenue Recognition [Abstract]

Revenue Recognition

REVENUE RECOGNITION

Disaggregation of Revenue

The significant majority of our revenue is from contracts with customers. Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue. 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.

	Year Ended December 31, 2021
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	3,601.8	$	3,969.8	$	4,510.1	$	—	$	12,081.7
Used vehicle	2,875.0		2,370.5		3,067.4		325.9		8,638.8
Parts and service	1,007.6		950.0		1,246.7		502.3		3,706.6
Finance and insurance, net	469.1		489.6		401.0		24.8		1,384.5
Other	6.4		18.6		4.7		2.7		32.4
	$	7,959.9	$	7,798.5	$	9,229.9	$	855.7	$	25,844.0
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	7,260.7	$	7,079.0	$	8,197.6	$	535.6	$	23,072.9
Goods and services transferred over time(2)	699.2		719.5		1,032.3		320.1		2,771.1
	$	7,959.9	$	7,798.5	$	9,229.9	$	855.7	$	25,844.0

	Year Ended December 31, 2020
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	3,411.1	$	3,283.7	$	3,723.8	$	—	$	10,418.6
Used vehicle	1,781.4		1,516.5		2,125.9		177.5		5,601.3
Parts and service	891.5		811.3		1,058.1		496.5		3,257.4
Finance and insurance, net	370.5		361.7		294.7		32.4		1,059.3
Other	36.1		14.8		0.3		2.2		53.4
	$	6,490.6	$	5,988.0	$	7,202.8	$	708.6	$	20,390.0
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	5,841.6	$	5,343.8	$	6,301.3	$	413.7	$	17,900.4
Goods and services transferred over time(2)	649.0		644.2		901.5		294.9		2,489.6
	$	6,490.6	$	5,988.0	$	7,202.8	$	708.6	$	20,390.0

	Year Ended December 31, 2019
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	3,502.5	$	3,695.6	$	3,968.4	$	—	$	11,166.5
Used vehicle	1,769.5		1,501.9		2,045.6		149.5		5,466.5
Parts and service	959.0		889.7		1,136.0		587.4		3,572.1
Finance and insurance, net	354.6		368.3		279.2		21.2		1,023.3
Other	85.8		13.2		5.6		2.7		107.3
	$	6,671.4	$	6,468.7	$	7,434.8	$	760.8	$	21,335.7
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	5,969.6	$	5,768.3	$	6,467.5	$	399.3	$	18,604.7
Goods and services transferred over time(2)	701.8		700.4		967.3		361.5		2,731.0
	$	6,671.4	$	6,468.7	$	7,434.8	$	760.8	$	21,335.7
(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.

Performance Obligations and Significant Judgments and Estimates Related to Revenue Recognition

New and Used Vehicle

We sell new vehicles at our franchised dealerships and used vehicles at our franchised dealerships and AutoNation USA used vehicle stores. The transaction price for a vehicle sale is determined with the customer at the time of sale. Customers often trade in their own vehicle to apply toward the purchase of a retail new or used vehicle. The “trade-in” vehicle is a

type of noncash consideration measured at fair value, based on external and internal market data for the specific vehicle, and applied as payment to the contract price for the purchased vehicle.

When we sell a new or used vehicle, we typically transfer control at a point in time upon delivery of the vehicle to the customer, which is generally at time of sale, as the customer is able to direct the use of, and obtain substantially all of the benefits from, the vehicle at such time. We do not directly finance our customers’ vehicle purchases or leases. In many cases, we arrange third-party financing for the retail sale or lease of vehicles to our customers in exchange for a fee paid to us by the third-party financial institution. We receive payment directly from the customer at the time of sale or from the third-party financial institution (referred to as contracts-in-transit or vehicle receivables, which are part of our receivables from contracts with customers) within a short period of time following the sale. We establish provisions, which are not significant, for estimated returns and warranties on the basis of both historical information and current trends.

We also offer auction services at our AutoNation-branded automotive auctions, revenue from which is included within Used Vehicle wholesale revenue. The transaction price for auction services is based on an established pricing schedule and determined with the customer at the time of sale, and payment is due upon completion of service. We satisfy our performance obligations related to auction services at the point in time that control transfers to the customer, which is when the service is completed.

Parts and Service

We sell parts and automotive services related to customer-paid repairs and maintenance, repairs and maintenance under manufacturer warranties and extended service contracts, and collision-related repairs. We also sell parts through our wholesale and retail counter channels.

Each automotive repair and maintenance service is a single performance obligation that includes both the parts and labor associated with the service. Payment for automotive service work is typically due upon completion of the service, which is generally completed within a short period of time from contract inception. The transaction price for automotive repair and maintenance services is based on the parts used, the number of labor hours applied, and standardized hourly labor rates. We satisfy our performance obligations, transfer control, and recognize revenue over time for automotive repair and maintenance services because we are creating an asset with no alternative use and we have an enforceable right to payment for performance completed to date. We use an input method to recognize revenue and measure progress based on labor hours expended relative to the total labor hours expected to be expended to satisfy the performance obligation. We have determined labor hours expended to be the relevant measure of work performed to complete the automotive repair or maintenance service for the customer. As a practical expedient, since automotive repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue.

The transaction price for wholesale and retail counter parts sales is determined at the time of sale based on the quantity and price of each product purchased. Payment is typically due at time of sale, or within a short period of time following the sale. We establish provisions, which are not significant, for estimated parts returns based on historical information and current trends. Delivery methods of wholesale and retail counter parts vary; however, we generally consider control of wholesale and retail counter parts to transfer when the products are shipped, which typically occurs the same day as or within a few days of the sale.

Finance and Insurance

We sell and receive a commission on the following types of finance and insurance products: extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products, among others. We offer products that are sold and administered by independent third parties, including the vehicle manufacturers’ captive finance subsidiaries.

Pursuant to our arrangements with these third-party providers, we sell the products on a commission basis, and, for certain products, we also participate in future profit pursuant to retrospective commission arrangements with the issuers of those contracts through the life of the related contracts. For retrospective commission arrangements, we are paid annually based on the annual performance of the issuers’ product portfolio. For the majority of finance and insurance product sales, our performance obligation is to arrange for the provision of goods or services by another party. Our performance obligation is satisfied when this arrangement is made, which is when the finance and insurance product is delivered to the end-customer, generally at the time of the vehicle sale. As agent, we recognize revenue in the amount of any fee or commission to which we expect to be entitled, which is the net amount of consideration that we retain after paying the third-party provider the consideration received in exchange for the goods or services to be fulfilled by that party.

The retrospective commission we earn on each product sold is a form of variable consideration that is subject to constraint due to it being highly susceptible to factors outside our influence and control. Our agreements with the third-party administrators generally provide for an annual retrospective commission payout based on the product portfolio performance for that year. We estimate variable consideration related to retrospective commissions and perform a constraint analysis using the expected value method based on the historical performance of the product portfolios and current trends to estimate the amount of retrospective commissions to which we expect we will be entitled. At each reporting period, we reassess our expectations about the amount of retrospective commission variable consideration to which we expect to be entitled and recognize revenue when we no longer believe a significant revenue reversal is probable.

Additionally, we may be charged back for commissions related to finance and insurance products in the event of early termination, default, or prepayment of the contracts by end-customers (“chargebacks”). An estimated refund liability for chargebacks against the revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized and is based primarily on our historical chargeback experience. We update our measurement of the chargeback liability at each reporting date for changes in expectations about the amount of chargebacks. See Note 10 of the Notes to Consolidated Financial Statements for more information regarding chargeback liabilities.

We also sell a vehicle maintenance program (the Vehicle Care Program or “VCP”) where we act as the principal in the sale since we have the primary responsibility to provide the specified services to the customer under the VCP contract. When a VCP product is sold in conjunction with the sale of a vehicle to the same customer, the stand-alone selling prices of each product are based on observable selling prices. Under a VCP contract, a customer purchases a specific number of maintenance services to be redeemed at an AutoNation location over a five-year term from the date of purchase. We satisfy our performance obligations and recognize revenue as maintenance services are rendered, since the customer benefits when we have completed the maintenance service. Although payment is due from the customer at the time of sale and services are rendered at points in time during a five-year contract term, these contracts do not contain a significant financing component. 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	$	93.8	$	33.3	$	44.4	$	16.1

We also recognize revenue, net of estimated chargebacks, for commissions earned by us for the transfer of financial assets when we arrange installment loans and leases with third-party lenders in connection with customer vehicle purchases.

Other Revenue

The majority of our other revenue is generated from the sale of vehicles to fleet/rental car companies that are specifically ordered for such companies (“fleet” sales). Revenue recognition for fleet sales is very similar to the recognition of revenue for new vehicles, described above.

Contract Assets and Liabilities

When the timing of our provision of goods or services is different from the timing of payments made by our customers, we recognize either a contract asset (performance precedes contractual due date) or a contract liability (customer payment precedes performance). Contract assets primarily relate to our right to consideration for work in process not yet billed at the reporting date associated with automotive repair and maintenance services, as well as our estimate of variable consideration that has been included in the transaction price for certain finance and insurance products (retrospective commissions). These contract assets are reclassified to receivables when the right to consideration becomes unconditional. Contract liabilities primarily relate to upfront payments received from customers for the sale of VCP contracts.

Our receivables from contracts with customers are included in Receivables, net, our current contract asset is included with Other Current Assets, our long-term contract asset is included with Other Assets, our current contract liability is included with Other Current Liabilities, and our long-term contract liability is included with Other Liabilities in our Consolidated Balance Sheets.

The following table provides the balances at December 31 of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities:

	2021		2020		2019
Receivables from contracts with customers, net	$	539.9	$	595.0	$	662.0
Contract Asset (Current)	$	30.4	$	25.7	$	26.7
Contract Asset (Long-Term)	$	14.2	$	10.2	$	7.0
Contract Liability (Current)	$	33.6	$	32.5	$	32.6
Contract Liability (Long-Term)	$	60.5	$	56.0	$	57.7

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 year from amounts included in the contract liability balance at the beginning of the period and performance obligations satisfied in previous periods:

	2021		2020		2019
Amounts included in contract liability at the beginning of the period	$	32.1	$	31.0	$	35.1
Performance obligations satisfied in previous periods	$	19.4	$	19.0	$	9.3

Other significant changes include contract assets reclassified to receivables of $25.0 million during 2021 and $26.1 million in 2020.

Contract Costs

For sales commissions incurred related to sales of vehicles and sales of finance and insurance products for which we act as agent, we have elected as a practical expedient to not capitalize the incremental costs to obtain those contracts since they are point-of-sale transactions and the amortization period would be immediate.

Sales commissions and third-party administrator fees incurred related to sales of VCP products are capitalized since these payments are directly related to sales achieved during a time period and would not have been incurred if the contract had not been obtained. Since the capitalized costs are related to services that are transferred during a five-year contract term, we amortize the assets over the contract term of five years consistent with the pattern of transfer of the service to which the assets relate. We had capitalized costs incurred to obtain or fulfill a VCP contract with a customer of $9.4 million as of December 31, 2021 and $9.0 million at December 31, 2020. We amortized $3.8 million and $3.5 million of these capitalized costs during 2021 and 2020, respectively.

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Earnings Per Share

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

EARNINGS PER SHARE

Basic earnings per share (“EPS”) is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested RSU awards. Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options and unvested RSU awards.

The following table presents the calculation of basic and diluted EPS:

	2021		2020		2019
Net income from continuing operations	$	1,373.3	$	381.8	$	450.8
Loss from discontinued operations, net of income taxes	(0.3)		(0.2)		(0.8)
Net income	$	1,373.0	$	381.6	$	450.0
Basic weighted average common shares outstanding	74.2		88.3		90.1
Dilutive effect of stock options and unvested RSUs	0.8		0.4		0.4
Diluted weighted average common shares outstanding	75.0		88.7		90.5
Basic EPS amounts(1):
Continuing operations	$	18.51	$	4.32	$	5.00
Discontinued operations	$	—	$	—	$	(0.01)
Net income	$	18.50	$	4.32	$	4.99
Diluted EPS amounts(1):
Continuing operations	$	18.31	$	4.30	$	4.98
Discontinued operations	$	—	$	—	$	(0.01)
Net income	$	18.31	$	4.30	$	4.97
(1) EPS amounts are calculated discretely and, therefore, may not add up to the total due to rounding.

A summary of anti-dilutive equity instruments excluded from the computation of diluted EPS is as follows:

	2021	2020	2019
Anti-dilutive equity instruments excluded from the computation of diluted EPS	—	1.7	2.4

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Receivables, Net

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Receivables, Net

RECEIVABLES, NET

The components of receivables, net of allowances for expected credit losses, at December 31 are as follows:

	2021		2020
Contracts-in-transit and vehicle receivables	$	347.4	$	445.8
Trade receivables	162.6		138.0
Manufacturer receivables	148.4		210.0
Other	77.0		55.1
	735.4		848.9
Less: allowances for expected credit losses	(5.4)		(3.7)
Receivables, net	$	730.0	$	845.2

Contracts-in-transit and vehicle receivables primarily represent receivables from financial institutions for the portion of the vehicle sales price financed by our customers. Trade receivables represent amounts due for parts and services sold, excluding amounts due from manufacturers, as well as receivables from finance organizations for commissions on the sale of finance and insurance products. Manufacturer receivables represent amounts due from manufacturers for holdbacks, rebates, incentives, floorplan assistance, and warranty claims. We evaluate our receivables for collectability based on past collection experience, current information, and reasonable and supportable forecasts.

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Inventory and Vehicle Floorplan Payable

12 Months Ended

Dec. 31, 2021

Inventory And Vehicle Floorplan Payable [Abstract]

Inventory And Vehicle Floorplan Payable

INVENTORY AND VEHICLE FLOORPLAN PAYABLE

The components of inventory at December 31 are as follows:

	2021		2020
New vehicles	$	515.1	$	1,761.9
Used vehicles	1,109.3		648.4
Parts, accessories, and other	223.5		188.2
Inventory	$	1,847.9	$	2,598.5

The components of vehicle floorplan payables at December 31 are as follows:

	2021		2020
Vehicle floorplan payable - trade	$	489.9	$	1,541.7
Vehicle floorplan payable - non-trade	967.7		1,218.2
Vehicle floorplan payable	$	1,457.6	$	2,759.9

Vehicle floorplan payable-trade reflects amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with the corresponding manufacturers’ captive finance subsidiaries (“trade lenders”). Vehicle floorplan payable-non-trade represents amounts borrowed to finance the purchase of specific new and, to a lesser extent, used vehicle inventories with non-trade lenders, as well as amounts borrowed under our secured used vehicle floorplan facilities. Changes in vehicle floorplan payable-trade are reported as operating cash flows and changes in vehicle floorplan payable-non-trade are reported as financing cash flows in the accompanying Consolidated Statements of Cash Flows.

Our inventory costs are generally reduced by manufacturer holdbacks, incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising rebates, while the related vehicle floorplan payables are reflective of the gross cost of the vehicle. The vehicle floorplan payables, as shown in the above table, will generally also be higher than the inventory cost due to the timing of the sale of a vehicle and payment of the related liability.

Vehicle floorplan facilities are due on demand, but in the case of new vehicle inventories, are generally paid within several business days after the related vehicles are sold. Vehicle floorplan facilities are primarily collateralized by vehicle inventories and related receivables.

At December 31, 2021, most of our new vehicle floorplan facilities utilized LIBOR-based interest rates and a smaller portion utilized Prime-based interest rates. Our new vehicle floorplan outstanding had a weighted-average annual interest rate of 1.6% at December 31, 2021, and 1.6% at December 31, 2020. At December 31, 2021, the aggregate capacity under our new vehicle floorplan facilities to finance our new vehicle inventory was approximately $4.8 billion, of which $0.9 billion had been borrowed.

At December 31, 2021, our used vehicle floorplan facilities utilized LIBOR-based interest rates. Our used vehicle floorplan outstanding had a weighted-average annual interest rate of 1.8% at December 31, 2021, and 1.8% at December 31, 2020. At December 31, 2021, the aggregate capacity under our used vehicle floorplan facilities with various lenders to finance a portion of our used vehicle inventory was $592.0 million, of which $581.4 million had been borrowed. The remaining borrowing capacity of $10.6 million was limited to $0.1 million based on the eligible used vehicle inventory that could have been pledged as collateral.

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Property and Equipment, Net

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

PROPERTY AND EQUIPMENT, NET

A summary of property and equipment, net, at December 31 is as follows:

	2021		2020
Land	$	1,471.8	$	1,417.4
Buildings and improvements	2,466.0		2,333.3
Furniture, fixtures, and equipment	1,262.9		1,040.3
	5,200.7		4,791.0
Less: accumulated depreciation and amortization	(1,781.2)		(1,652.9)
Property and equipment, net	$	3,419.5	$	3,138.1

We capitalized interest in connection with various construction projects to build, upgrade, or remodel our facilities of $0.8 million in 2021, $0.6 million in 2020, and $1.3 million in 2019.

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Goodwill and Intangible Assets, Net

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill And Intangible Assets, Net

GOODWILL AND INTANGIBLE ASSETS, NET

Goodwill and intangible assets, net, at December 31 consisted of the following:

	2021		2020
Goodwill	$	1,235.3	$	1,185.0
Franchise rights - indefinite-lived	$	727.5	$	509.0
Other intangible assets	24.0		19.6
	751.5		528.6
Less: accumulated amortization	(8.0)		(7.1)
Intangible assets, net	$	743.5	$	521.5

Goodwill

Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020, were as follows:

	Domestic		Import		Premium Luxury		Collision Centers		Parts Centers		Corporate & Other		Consolidated
Balance as of January 1, 2020
Goodwill	$	367.3	$	498.9	$	714.9	$	41.7	$	19.1	$	1,470.0	$	3,111.9
Accumulated impairment losses	(140.0)		—		—		—		—		(1,470.0)		(1,610.0)
	227.3		498.9		714.9		41.7		19.1		—		1501.9
Acquisitions, dispositions, and other adjustments, net (1)	(0.1)		1.7		(0.3)		(0.1)		0.2		—		1.4
Impairment	—		—		(257.4)		(41.6)		(19.3)		—		(318.3)
Balance as of December 31, 2020
Goodwill	367.2		500.6		714.6		41.6		19.3		1,470.0		3,113.3
Accumulated impairment losses	(140.0)		—		(257.4)		(41.6)		(19.3)		(1,470.0)		(1,928.3)
	227.2		500.6		457.2		—		—		—		1,185.0
Acquisitions, dispositions, and other adjustments, net (1)	1.5		17.3		26.9		4.6		—		—		50.3
Balance as of December 31, 2021
Goodwill	368.7		517.9		741.5		46.2		19.3		1,470.0		3,163.6
Accumulated impairment losses	(140.0)		—		(257.4)		(41.6)		(19.3)		(1,470.0)		(1,928.3)
	$	228.7	$	517.9	$	484.1	$	4.6	$	—	$	—	$	1,235.3

(1)    Includes amounts reclassified to held for sale and related adjustments, which are presented in Other Current Assets in our Consolidated Balance Sheet as of period end.

See Note 19 of the Notes to Consolidated Financial Statements for more information about our goodwill impairment test.

Intangible Assets

Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers. As of December 31, 2021, we had $727.5 million of franchise rights recorded on our Consolidated Balance Sheet, of which $137.7 million was related to Domestic stores, $143.8 million was related to Import stores, and $446.0 million was related to Premium Luxury stores.

See Note 19 of the Notes to Consolidated Financial Statements for more information about our franchise rights impairment tests.

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Leases

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Leases

8.     LEASES

General description

The significant majority of leases that we enter into are for real estate. We lease numerous facilities relating to our operations, including primarily for automobile showrooms, display lots, service facilities, collision repair centers, supply facilities, automobile storage lots, parking lots, offices, and our corporate headquarters. Leases for real property generally have terms ranging from 1 to 25 years. We also lease various types of equipment, including security cameras, diagnostic equipment, copiers, key-cutting machines, and postage machines, among others. Equipment leases generally have terms

ranging from 1 to 5 years. In addition, we lease certain vehicles from vehicle manufacturers to provide our service customers with the use of a vehicle while their vehicles are being serviced at our dealerships. These service loaner vehicle leases generally have terms ranging from 6 to 18 months, and we typically purchase the service loaner vehicles at the end of the lease.

Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We do not have any significant leases that have not yet commenced but that create significant rights and obligations for us. We have elected the practical expedient under ASC Topic 842 to not separate lease and nonlease components for the following classes of underlying assets: real estate, office equipment, service loaner vehicles, and marketing-related assets (e.g., billboards).

Our real estate and equipment leases often require that we pay maintenance in addition to rent. Additionally, our real estate leases generally require payment of real estate taxes and insurance. Maintenance, real estate taxes, and insurance payments are generally variable and based on actual costs incurred by the lessor. Therefore, these amounts are not included in the consideration of the contract when determining the right-of-use (“ROU”) asset and lease liability, but are reflected as variable lease expenses for those classes of underlying assets for which we have elected the practical expedient to not separate lease and nonlease components.

Leases with an initial term of 12 months or less that do not include a purchase option that is reasonably certain to be exercised are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We rent or sublease certain real estate to third parties, which are primarily operating leases.

Variable lease payments

A majority of our lease agreements include fixed rental payments. Certain of our lease agreements include fixed rental payments that are adjusted periodically for changes in the Consumer Price Index (“CPI”). Payments based on a change in an index or a rate are not considered in the determination of lease payments for purposes of measuring the related lease liability. While lease liabilities are not remeasured as a result of changes to the CPI, changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments are incurred.

Options to extend or terminate leases

Most of our real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. If it is reasonably certain that we will exercise such options, the periods covered by such options are included in the lease term and are recognized as part of our ROU assets and lease liabilities. Certain leases also include options to purchase the leased property or asset. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Discount rate

For our incremental borrowing rate, we generally use a portfolio approach to determine the discount rate for leases with similar characteristics. We determine discount rates based on current market prices of instruments similar to our unsecured borrowings with maturities that align with the relevant lease term, and such rates are then adjusted for our credit spread and the effects of full collateralization.

The following tables present information about our ROU assets, lease liabilities, total lease costs, cash flows arising from lease transactions, and other supplemental information for the years ended December 31, 2021 and 2020:

Leases	Classification	2021		2020
Assets
Operating	Operating Lease Assets	$	284.0	$	309.5
Finance	Property and Equipment, Net and Other Assets	312.3		102.9
Total right-of-use assets		$	596.3	$	412.4
Liabilities
Current
Operating	Other Current Liabilities	$	37.8	$	38.4
Finance	Current Maturities of Long-Term Debt and Vehicle Floorplan Payable - Trade	27.0		27.2
Noncurrent
Operating	Noncurrent Operating Lease Liabilities	260.1		286.5
Finance	Long-Term Debt, Net of Current Maturities	318.6		107.1
Total lease liabilities		$	643.5	$	459.2

Lease Term and Discount Rate	2021		2020
Weighted average remaining lease term
Operating	12 years		12 years
Finance	17 years		14 years
Weighted-average discount rate
Operating	5.09	%	5.17	%
Finance	4.15	%	6.46	%

Lease cost	Classification	2021		2020
Operating lease cost	Selling, general, and administrative expenses	$	54.8	$	58.3
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization	12.5		9.8
Interest on lease liabilities	Other interest expense and floorplan interest expense	8.0		6.9
Short-term lease cost (1)	Selling, general, and administrative expenses	8.8		7.3
Variable lease cost	Selling, general, and administrative expenses	10.6		7.7
Sublease income	Selling, general, and administrative expenses	(0.9)		(0.5)
Net lease cost		$	93.8	$	89.5
(1) Includes leases with a term of one month or less.

Other Information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	55.3	$	57.0
Operating cash flows from finance leases (1)	$	38.1	$	38.5
Financing cash flows from finance leases	$	8.5	$	15.0
Supplemental noncash information on adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new:
Operating lease liabilities	$	13.5	$	16.8
Finance lease liabilities	$	249.4	$	57.6
(1) Includes the interest component of payments made on finance leases as well as principal payments on vehicle floorplan payables with trade lenders for certain service loaner vehicle leases.

Maturity of Lease Liabilities	Operating Leases		Finance Leases
Year ending December 31,
2022	$	51.7	$	39.3
2023	43.9		23.6
2024	37.6		23.7
2025	35.4		24.0
2026	31.5		24.3
Thereafter	206.3		333.0
Total lease payments	406.4		467.9
Less: interest	(108.5)		(122.3)
Present value of lease liabilities	$	297.9	$	345.6

Leases

8.     LEASES

General description

The significant majority of leases that we enter into are for real estate. We lease numerous facilities relating to our operations, including primarily for automobile showrooms, display lots, service facilities, collision repair centers, supply facilities, automobile storage lots, parking lots, offices, and our corporate headquarters. Leases for real property generally have terms ranging from 1 to 25 years. We also lease various types of equipment, including security cameras, diagnostic equipment, copiers, key-cutting machines, and postage machines, among others. Equipment leases generally have terms

ranging from 1 to 5 years. In addition, we lease certain vehicles from vehicle manufacturers to provide our service customers with the use of a vehicle while their vehicles are being serviced at our dealerships. These service loaner vehicle leases generally have terms ranging from 6 to 18 months, and we typically purchase the service loaner vehicles at the end of the lease.

Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. We do not have any significant leases that have not yet commenced but that create significant rights and obligations for us. We have elected the practical expedient under ASC Topic 842 to not separate lease and nonlease components for the following classes of underlying assets: real estate, office equipment, service loaner vehicles, and marketing-related assets (e.g., billboards).

Our real estate and equipment leases often require that we pay maintenance in addition to rent. Additionally, our real estate leases generally require payment of real estate taxes and insurance. Maintenance, real estate taxes, and insurance payments are generally variable and based on actual costs incurred by the lessor. Therefore, these amounts are not included in the consideration of the contract when determining the right-of-use (“ROU”) asset and lease liability, but are reflected as variable lease expenses for those classes of underlying assets for which we have elected the practical expedient to not separate lease and nonlease components.

Leases with an initial term of 12 months or less that do not include a purchase option that is reasonably certain to be exercised are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We rent or sublease certain real estate to third parties, which are primarily operating leases.

Variable lease payments

A majority of our lease agreements include fixed rental payments. Certain of our lease agreements include fixed rental payments that are adjusted periodically for changes in the Consumer Price Index (“CPI”). Payments based on a change in an index or a rate are not considered in the determination of lease payments for purposes of measuring the related lease liability. While lease liabilities are not remeasured as a result of changes to the CPI, changes to the CPI are treated as variable lease payments and recognized in the period in which the obligation for those payments are incurred.

Options to extend or terminate leases

Most of our real estate leases include one or more options to renew, with renewal terms that can extend the lease term from one to five years or more. The exercise of lease renewal options is at our sole discretion. If it is reasonably certain that we will exercise such options, the periods covered by such options are included in the lease term and are recognized as part of our ROU assets and lease liabilities. Certain leases also include options to purchase the leased property or asset. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise.

Discount rate

For our incremental borrowing rate, we generally use a portfolio approach to determine the discount rate for leases with similar characteristics. We determine discount rates based on current market prices of instruments similar to our unsecured borrowings with maturities that align with the relevant lease term, and such rates are then adjusted for our credit spread and the effects of full collateralization.

The following tables present information about our ROU assets, lease liabilities, total lease costs, cash flows arising from lease transactions, and other supplemental information for the years ended December 31, 2021 and 2020:

Leases	Classification	2021		2020
Assets
Operating	Operating Lease Assets	$	284.0	$	309.5
Finance	Property and Equipment, Net and Other Assets	312.3		102.9
Total right-of-use assets		$	596.3	$	412.4
Liabilities
Current
Operating	Other Current Liabilities	$	37.8	$	38.4
Finance	Current Maturities of Long-Term Debt and Vehicle Floorplan Payable - Trade	27.0		27.2
Noncurrent
Operating	Noncurrent Operating Lease Liabilities	260.1		286.5
Finance	Long-Term Debt, Net of Current Maturities	318.6		107.1
Total lease liabilities		$	643.5	$	459.2

Lease Term and Discount Rate	2021		2020
Weighted average remaining lease term
Operating	12 years		12 years
Finance	17 years		14 years
Weighted-average discount rate
Operating	5.09	%	5.17	%
Finance	4.15	%	6.46	%

Lease cost	Classification	2021		2020
Operating lease cost	Selling, general, and administrative expenses	$	54.8	$	58.3
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization	12.5		9.8
Interest on lease liabilities	Other interest expense and floorplan interest expense	8.0		6.9
Short-term lease cost (1)	Selling, general, and administrative expenses	8.8		7.3
Variable lease cost	Selling, general, and administrative expenses	10.6		7.7
Sublease income	Selling, general, and administrative expenses	(0.9)		(0.5)
Net lease cost		$	93.8	$	89.5
(1) Includes leases with a term of one month or less.

Other Information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	55.3	$	57.0
Operating cash flows from finance leases (1)	$	38.1	$	38.5
Financing cash flows from finance leases	$	8.5	$	15.0
Supplemental noncash information on adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new:
Operating lease liabilities	$	13.5	$	16.8
Finance lease liabilities	$	249.4	$	57.6
(1) Includes the interest component of payments made on finance leases as well as principal payments on vehicle floorplan payables with trade lenders for certain service loaner vehicle leases.

Maturity of Lease Liabilities	Operating Leases		Finance Leases
Year ending December 31,
2022	$	51.7	$	39.3
2023	43.9		23.6
2024	37.6		23.7
2025	35.4		24.0
2026	31.5		24.3
Thereafter	206.3		333.0
Total lease payments	406.4		467.9
Less: interest	(108.5)		(122.3)
Present value of lease liabilities	$	297.9	$	345.6

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Long-Term Debt and Commercial Paper

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Long-Term Debt and Commerical Paper

LONG-TERM DEBT AND COMMERCIAL PAPER

Long-term debt at December 31 consisted of the following:

Debt Description	Maturity Date	Interest Payable	2021		2020
3.35% Senior Notes	January 15, 2021	January 15 and July 15	$	—	$	300.0
3.5% Senior Notes	November 15, 2024	May 15 and November 15	450.0		450.0
4.5% Senior Notes	October 1, 2025	April 1 and October 1	450.0		450.0
3.8% Senior Notes	November 15, 2027	May 15 and November 15	300.0		300.0
1.95% Senior Notes	August 1, 2028	February 1 and August 1	400.0		—
4.75% Senior Notes	June 1, 2030	June 1 and December 1	500.0		500.0
2.4% Senior Notes	August 1, 2031	February 1 and August 1	450.0		—
Revolving credit facility	March 26, 2025	Monthly	—		—
Finance leases and other debt	Various dates through 2041		330.6		116.6
			2,880.6		2,116.6
Less: unamortized debt discounts and debt issuance costs			(22.2)		(14.8)
Less: current maturities			(12.2)		(309.2)
Long-term debt, net of current maturities			$	2,846.2	$	1,792.6

At December 31, 2021, aggregate maturities of non-vehicle long-term debt were as follows:

Year Ending December 31:
2022	$	12.2
2023	11.9
2024	462.3
2025	463.2
2026	14.1
Thereafter	1,916.9
	$	2,880.6

Senior Unsecured Notes and Credit Agreement

On July 29, 2021, we issued $400.0 million aggregate principal amount of 1.95% Senior Notes due 2028 and $450.0 million aggregate principal amount of 2.4% Senior Notes due 2031, which were sold at 99.805% and 99.735% of the aggregate principal amount, respectively. In January 2021, we repaid the outstanding $300.0 million of 3.35% Senior Notes due 2021.

The interest rates payable on our 3.5% Senior Notes, 4.5% Senior Notes, 3.8% Senior Notes, and 4.75% Senior Notes are subject to adjustment upon the occurrence of certain credit rating events as provided in the indentures for these senior unsecured notes.

Under our amended and restated credit agreement, we have a $1.8 billion revolving credit facility that matures on March 26, 2025. The credit agreement also contains an accordion feature that allows us, subject to credit availability and certain other conditions, to increase the amount of the revolving credit facility, together with any added term loans, by up to $500.0 million in the aggregate. We have a $200.0 million letter of credit sublimit as part of our revolving credit facility. The amount available to be borrowed under the revolving credit facility is reduced on a dollar-for-dollar basis by the

cumulative amount of any outstanding letters of credit, which was $39.7 million at December 31, 2021, leaving an additional borrowing capacity under the revolving credit facility of $1.8 billion at December 31, 2021.

Our revolving credit facility under the amended credit agreement provides for a commitment fee on undrawn amounts ranging from 0.125% to 0.20% and interest on borrowings at LIBOR or the base rate, in each case plus an applicable margin. The applicable margin ranges from 1.125% to 1.50% for LIBOR borrowings and 0.125% to 0.50% for base rate borrowings. The interest rate charged for our revolving credit facility is affected by our leverage ratio. For instance, an increase in our leverage ratio from greater than or equal to 2.0x but less than 3.25x to greater than or equal to 3.25x would result in a 12.5 basis point increase in the applicable margin.

Within the meaning of Regulation S-X, Rule 3-10, AutoNation, Inc. (the parent company) has no independent assets or operations. If guarantees of our subsidiaries were to be issued under our existing registration statement, we expect that such guarantees would be full and unconditional and joint and several, and any subsidiaries other than the guarantor subsidiaries would be minor.

Other Long-Term Debt

At December 31, 2021, we had finance leases and other debt obligations of $330.6 million, which are due at various dates through 2041. See Note 8 of the Notes to Consolidated Financial Statements for more information related to finance lease obligations.

Commercial Paper

We have a commercial paper program pursuant to which we may issue short-term, unsecured commercial paper notes on a private placement basis up to a maximum aggregate amount outstanding at any time of $1.0 billion. The interest rate for the commercial paper notes varies based on duration and market conditions. The maturities of the commercial paper notes may vary, but may not exceed 397 days from the date of issuance. Proceeds from the issuance of commercial paper notes are used to repay borrowings under the revolving credit facility, to finance acquisitions and for working capital, capital expenditures, share repurchases, and/or other general corporate purposes. We plan to use the revolving credit facility under our credit agreement as a liquidity backstop for borrowings under the commercial paper program. A downgrade in our credit ratings could negatively impact our ability to issue, or the interest rates for, commercial paper notes.

At December 31, 2021, we had $340.0 million of commercial paper notes outstanding with a weighted-average annual interest rate of 0.47% and a weighted-average remaining term of 10 days. We had no commercial paper notes outstanding at December 31, 2020.

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Chargeback Liability

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Chargeback Liability

CHARGEBACK LIABILITY

We may be charged back for commissions related to financing, vehicle service, or protection products in the event of early termination, default, or prepayment of the contracts by customers (“chargebacks”). However, our exposure to loss generally is limited to the commissions that we receive. An estimated chargeback liability is recorded in the period in which the related finance and insurance revenue is recognized. The following is a rollforward of our estimated chargeback liability for each of the three years presented in our Consolidated Financial Statements:

	2021		2020		2019
Balance - January 1	$	142.1	$	134.5	$	128.1
Add: Provisions	168.9		118.1		108.6
Deduct: Chargebacks	(140.0)		(110.5)		(102.2)
Balance - December 31	$	171.0	$	142.1	$	134.5

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Self-Insurance

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Self-Insurance

SELF-INSURANCE

Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, employee medical benefits, automobile, and workers’ compensation.

At December 31, 2021 and 2020, current and long-term self-insurance liabilities were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows:

	2021		2020
Self-insurance - current portion	$	44.6	$	35.4
Self-insurance - long-term portion	51.2		47.0
Total self-insurance liabilities	$	95.8	$	82.4

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Income Taxes

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Income Taxes

INCOME TAXES

The components of the income tax provision from continuing operations for the years ended December 31 are as follows:

	2021		2020		2019
Current:
Federal	$	374.2	$	168.9	$	86.0
State	78.5		37.4		29.4
Federal and state deferred	(17.2)		(39.0)		45.8
Change in valuation allowance, net	(0.2)		0.3		0.2
Adjustments and settlements	(0.2)		0.7		0.4
Income tax provision	$	435.1	$	168.3	$	161.8

A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows:

	2021		%	2020		%	2019		%
Income tax provision at statutory rate	$	379.8	21.0	$	115.5	21.0	$	128.7	21.0
Impact of goodwill impairment	—		—	21.4		3.9	—		—
Other non-deductible expenses, net	(1.2)		(0.1)	8.2		1.5	10.3		1.7
State income taxes, net of federal benefit	60.7		3.4	24.3		4.4	25.7		4.2
	439.3		24.3	169.4		30.8	164.7		26.9
Change in valuation allowance, net	(0.2)		—	0.3		0.1	0.2		—
Adjustments and settlements	(0.2)		—	0.7		0.1	0.4		0.1
Federal and state tax credits	(1.0)		—	(0.7)		(0.1)	(0.9)		(0.2)
Other, net	(2.8)		(0.2)	(1.4)		(0.3)	(2.6)		(0.4)
Income tax provision	$	435.1	24.1	$	168.3	30.6	$	161.8	26.4

Deferred income tax asset and liability components at December 31 are as follows:

	2021		2020
Deferred income tax assets:
Inventory	$	20.8	$	20.2
Receivable allowances	1.2		1.0
Warranty, chargeback, and self-insurance liabilities	61.9		53.1
Other accrued liabilities	31.5		31.5
Deferred compensation	28.7		24.4
Stock-based compensation	7.0		10.6
Lease liabilities	142.2		80.8
Loss carryforwards— state	6.2		6.8
Other, net	5.3		4.6
Total deferred income tax assets	304.8		233.0
Valuation allowance	(4.6)		(4.8)
Deferred income tax assets, net of valuation allowance	300.2		228.2
Deferred income tax liabilities:
Long-lived assets (intangible assets and property)	(237.9)		(219.6)
Investments - unrealized appreciation	(0.9)		(19.5)
Right-of-use assets	(131.4)		(75.0)
Other, net	(8.2)		(10.0)
Total deferred income tax liabilities	(378.4)		(324.1)
Net deferred income tax liabilities	$	(78.2)	$	(95.9)

Our net deferred tax liability of $78.2 million as of December 31, 2021, and $95.9 million as of December 31, 2020, is classified as Deferred Income Taxes in the accompanying Consolidated Balance Sheets.

Income taxes payable included in Other Current Liabilities totaled $6.9 million at December 31, 2021 and $13.3 million at December 31, 2020.

At December 31, 2021, we had $94.3 million of gross domestic state net operating loss carryforwards and capital loss carryforwards, and $1.6 million of state tax credits, all of which result in a deferred tax asset of $6.2 million and expire from 2022 through 2041.

In assessing the realizability of deferred tax assets, we consider whether it is more likely than not that some portion or all of the deferred tax assets will not be realized. We provide valuation allowances to offset portions of deferred tax assets due to uncertainty surrounding the future realization of such deferred tax assets. At December 31, 2021, we had $4.6 million of valuation allowance related to state net operating loss carryforwards. We adjust the valuation allowance in the period management determines it is more likely than not that deferred tax assets will or will not be realized.

We file income tax returns in the U.S. federal jurisdiction and various states. As a matter of course, various taxing authorities, including the IRS, regularly audit us. These audits may culminate in proposed assessments which may ultimately result in our owing additional taxes. Currently, no tax years are under examination by the IRS and tax years from 2014 to 2019 are under examination by U.S. state jurisdictions. We believe that our tax positions comply with applicable tax law and that we have adequately provided for these matters.

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2021		2020		2019
Balance at January 1	$	7.0	$	5.3	$	4.3
Additions based on tax positions related to the current year	—		0.4		—
Additions for tax positions of prior years	0.8		1.6		1.4
Reductions for tax positions of prior years	—		—		—
Reductions for expirations of statute of limitations	(0.9)		(0.3)		(0.4)
Settlements	—		—		—
Balance at December 31	$	6.9	$	7.0	$	5.3

We had accumulated interest and penalties associated with these unrecognized tax benefits of $9.1 million at December 31, 2021, $8.4 million at December 31, 2020, and $7.5 million at December 31, 2019. We additionally had a deferred tax asset of $3.6 million at December 31, 2021, $3.4 million at December 31, 2020, and $2.8 million at December 31, 2019, related to these balances. The net of the unrecognized tax benefits, associated interest, penalties, and deferred tax asset was $12.4 million at December 31, 2021, $12.0 million at December 31, 2020, and $10.0 million at December 31, 2019, which if resolved favorably (in whole or in part) would reduce our effective tax rate. The unrecognized tax benefits, associated interest, penalties, and deferred tax asset are included as components of Other Liabilities and Deferred Income Taxes in the Consolidated Balance Sheets.

It is our policy to account for interest and penalties associated with income tax obligations as a component of income tax expense. We recognized $0.6 million during 2021, $0.7 million during 2020, and $0.7 million during 2019 (each net of tax effect), of interest and penalties as part of the provision for income taxes in the Consolidated Statements of Income.

We do not expect that our unrecognized tax benefits will significantly increase or decrease during the twelve months beginning January 1, 2022.

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Shareholders' Equity

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Shareholders' Equity

SHAREHOLDERS’ EQUITY

A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows:

	2021		2020		2019
Shares repurchased	22.3		7.2		1.3
Aggregate purchase price	$	2,303.2	$	382.3	$	44.7
Average purchase price per share	$	103.18	$	52.76	$	35.51

As of December 31, 2021, $894.6 million remained available under our stock repurchase limit most recently authorized by our Board of Directors.

Our Board of Directors authorized the retirement of 16.0 million shares of our treasury stock in April 2021, which assumed the status of authorized but unissued shares. Upon the retirement of treasury stock, it is our policy to charge the excess of the cost of the treasury stock over its par value entirely to additional paid-in capital. Any amounts exceeding additional paid-in capital are charged to retained earnings. This retirement had the effect of reducing treasury stock and issued common stock, which includes treasury stock. Our common stock, additional paid-in capital, retained earnings, and treasury stock accounts were adjusted accordingly. There was no impact to shareholders’ equity or outstanding common stock.

We have 5.0 million authorized shares of preferred stock, par value $0.01 per share, none of which are issued or outstanding. The Board of Directors has the authority to issue the preferred stock in one or more series and to establish the rights, preferences, and dividends of such preferred stock.

A summary of shares of common stock issued in connection with the exercise of stock options follows:

	2021		2020		2019
Shares issued	1.0		1.1		0.4
Proceeds from the exercise of stock options	$	54.5	$	52.7	$	12.7
Average exercise price per share	$	53.13	$	49.91	$	33.87

The following table presents a summary of shares of common stock issued in connection with the settlement of RSUs, as well as shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock and settlement of RSUs:

	2021	2020	2019
Shares issued	0.7	0.5	0.3
Shares surrendered to AutoNation to satisfy tax withholding obligations	0.2	0.2	0.1

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Stock-Based Compensation

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

STOCK-BASED COMPENSATION

The AutoNation, Inc. 2017 Employee Equity and Incentive Plan (the “2017 Plan”) provides for the grant of time-based and performance-based RSUs, restricted stock, stock options, stock appreciation rights, and other stock-based and cash-based awards to employees. A maximum of 5.5 million shares may be issued under the 2017 Plan.

The AutoNation, Inc. 2014 Non-Employee Director Equity Plan (the “2014 Director Plan”) provides for the grant of stock options, restricted stock, RSUs, stock appreciation rights, and other stock-based awards to our non-employee directors. As of December 31, 2021, the maximum number of shares authorized for issuance under the 2014 Director Plan was 600,000.

Restricted Stock Units

On January 4, 2021, each of our non-employee directors received a grant of 3,671 RSUs under the 2014 Director Plan. RSUs granted to our non-employee directors are fully vested on the grant date and are settled in shares of the Company’s common stock on the first trading day of February in the third year following the grant date, unless the non-employee director elects to defer delivery in accordance with the terms of the award and the 2014 Director Plan. Settlement of the RSUs will be accelerated in certain circumstances as provided in the terms of the award and the 2014 Director Plan, including in the event the non-employee director ceases to serve as a non-employee director of the Company. Compensation cost is recognized on the grant date and is based on the closing price of our common stock on the grant date.

In 2021, our Board’s Compensation Committee approved the grant of 0.5 million RSUs, which included time-based and performance-based RSUs. Time-based RSUs vest in equal installments generally over four years. The performance-based RSUs are subject to a one-year earnings performance measure. Certain performance-based RSUs vest in equal installments over four years, and others cliff vest after three years subject to the achievement of certain additional performance goals measured over a three-year period. The additional performance goals are based on an additional measure of earnings, a measure of return on invested capital, and a measure of our performance relative to certain customer satisfaction indices.

The fair value of each RSU award grant is based on the closing price of our common stock on the date of grant. Compensation cost for time-based RSUs is recognized on a straight-line basis over the shorter of the stated vesting period or the period until employees become retirement-eligible, and for performance-based awards is recognized over the requisite service period based on the expected achievement level of the performance goals, which is evaluated over the performance period. The amount of compensation cost recognized on performance-based RSUs depends on the relative satisfaction of the performance condition based on performance to date. We account for forfeitures of stock-based awards as they occur.

The following table summarizes information about vested and nonvested RSUs for 2021:

	RSUs
	Shares (in actual number of shares)	Weighted-Average Grant Date Fair Value
Nonvested at January 1	1,868,440	$	41.36
Granted	536,645	$	85.45
Vested	(671,926)	$	43.75
Forfeited	(76,713)	$	45.92
Nonvested at December 31	1,656,446	$	54.31

The weighted average grant-date fair value of RSUs and total fair value of RSUs vested are summarized in the following table:

	2021		2020		2019
Weighted average grant-date fair value of RSUs granted	$	85.45	$	44.28	$	35.51
Total fair value of RSUs vested (in millions)	$	51.8	$	23.2	$	9.0

Stock Options

Prior to 2017, we granted non-qualified stock options with a term of 10 years from the date of grant that vested in equal installments over four years. Upon exercise, shares of common stock are issued from our treasury stock.

We used the Black-Scholes valuation model to determine compensation expense and amortized compensation expense on a straight-line basis over the requisite service period of the grants. All stock options were fully vested as of December 31, 2020. The following table summarizes stock option activity during 2021:

	Stock Options
	Shares (in actual number of shares)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Options outstanding at January 1	1,155,693	$	52.78
Granted	—	$	—
Exercised	(1,025,673)	$	53.13
Forfeited	—	$	—
Expired	—	$	—
Options outstanding and exercisable as of December 31	130,020	$	50.01	1.97	$	8.7
Options available for future grants at December 31	2,667,548

The total intrinsic value of stock options exercised was $51.2 million during 2021, $9.8 million during 2020, and $5.2 million during 2019.

Restricted Stock

Prior to 2017, we granted restricted stock awards, which were issued from our treasury stock. All restricted stock awards were fully vested as of December 31, 2020. Compensation cost for restricted stock awards was based on the closing price of our common stock on the date of grant.

The total fair value of restricted stock awards vested was $0.7 million in 2020 and $1.7 million in 2019.

Compensation Expense

The following table summarizes the total stock-based compensation expense recognized in Selling, General, and Administrative Expenses in the Consolidated Statements of Income and the total recognized tax benefit related thereto:

	2021		2020		2019
RSUs	$	35.0	$	30.0	$	29.4
Stock options	—		0.1		0.9
Restricted stock	—		0.1		0.8
Total stock-based compensation expense	$	35.0	$	30.2	$	31.1
Tax benefit related to stock-based compensation expense	$	2.4	$	2.6	$	2.5

As of December 31, 2021, there was $30.7 million of total unrecognized compensation cost related to non-vested RSUs, which is expected to be recognized over a weighted average period of 1.61 years.

Tax benefits related to stock options exercised and vesting of restricted stock and RSUs were $17.2 million in 2021, $4.3 million in 2020, and $3.3 million in 2019.

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Acquisitions

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Acquisitions

ACQUISITIONS

During 2021, we purchased 20 stores and 4 collision centers operating in South Carolina, Georgia, and Maryland. Acquisitions are included in the Consolidated Financial Statements from the date of acquisition. The purchase price allocations for these business combinations are preliminary and subject to final adjustments, primarily related to the valuation of working capital amounts and residual goodwill. We did not purchase any stores during 2020 and purchased 2 parts centers in 2019.

The following table summarizes the consideration paid and estimated fair values of the assets acquired and liabilities assumed at the acquisition dates for the stores acquired during 2021.

Inventory	$	46.6
Property and equipment	282.8
Goodwill	51.6
Franchise rights - indefinite-lived	232.4
Other assets	17.7
Vehicle floorplan payable - non-trade	(15.1)
Other liabilities	(2.8)
Aggregate purchase price	$	613.2
Finance lease obligations	(180.5)
Cash used in business acquisition, net of cash acquired	$	432.7

The goodwill was assigned to the Domestic, Import, Premium Luxury, and Collision Centers reporting units in the amounts of $1.5 million, $15.3 million, $30.3 million, and $4.6 million, respectively. We anticipate that substantially all of the goodwill recorded in 2021 will be deductible for federal income tax purposes.

From each acquisition date to December 31, 2021, the amounts of revenue and earnings of the stores and collision centers acquired during 2021 included in our Consolidated Statement of Income for the year ended December 31, 2021, were $176.9 million and $6.9 million, respectively. Our supplemental pro forma revenue and net income from continuing operations had the acquisition dates been January 1, 2020 are as follows:

	Years Ended December 31,
Unaudited supplemental pro forma:	2021		2020
Revenue	$	26,544.2	$	21,074.8
Net income from continuing operations	$	1,407.0	$	404.1

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Store Divestitures	12 Months Ended
	Dec. 31, 2021
Discontinued Operations and Disposal Groups [Abstract]
Store Divestitures	DIVESTITURESDuring 2021, we divested 3 stores and 18 collision centers, of which 1 store and 17 collision centers were divested in the fourth quarter of 2021. During 2020, we divested 1 store and 2 collision centers, and terminated 1 franchise. During 2019, we divested 8 stores and 2 collision centers.We recognized net gains related to store and collision center divestitures of $13.3 million in 2021, of which $10.6 million was recognized during the fourth quarter of 2021, and $2.5 million in 2020 and $29.7 million in 2019. The net gains on these divestitures are included in Other (Income) Expense, Net (within Operating Income) in our Consolidated Statements of Income. The financial condition and results of operations of these businesses were not material to our consolidated financial statements.

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Exit or Disposal Cost Obligations

12 Months Ended

Dec. 31, 2021

Restructuring and Related Activities [Abstract]

Exit or Disposal Cost Obligations

EXIT OR DISPOSAL COST OBLIGATIONS

On August 17, 2020, we determined to close our aftermarket collision parts (“ACP”) business by the end of 2020. In connection with the closing of the ACP business, we incurred total charges of $36.7 million in 2020 as follows:

Cost Associated with Exit Activity	Total Costs Incurred		Statement of Operations Line Item
Inventory valuation adjustment	$	17.6	Parts and service cost of sales
Contract termination charges	3.2		Other (income) expense, net (operating)
Other associated closing costs	2.6		Selling, general, and administrative expenses
Accelerated depreciation	3.9		Depreciation and amortization
Accelerated amortization	3.2		Selling, general, and administrative expenses
Asset impairment charges	5.1		Other (income) expense, net (operating)
Involuntary termination benefits	1.1		Selling, general, and administrative expenses
	$	36.7

Charges incurred are reflected as part of the “Corporate and other” category of our segment information.

The following is a rollforward of our liability balances for exit or disposal cost obligations associated with the closing of the ACP business, which are included in Other Current Liabilities in the Consolidated Balance Sheets:

	Contract Termination Charges		Other Associated Closing Costs		Involuntary Termination Benefits		Total
Balance at December 31, 2020	$	0.2	$	2.4	$	0.8	$	3.4
Costs incurred	—		—		—		—
Costs paid or otherwise settled	(0.2)		(2.4)		(0.8)		(3.4)
Balance at December 31, 2021	$	—	$	—	$	—	$	—

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Financial Instruments and Fair Value Measurements

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Financial Instruments and Fair Value Measurements

FINANCIAL INSTRUMENTS AND FAIR VALUE MEASUREMENTSThe fair value of a financial instrument represents the amount at which the instrument could be exchanged in a current transaction between willing parties, other than in a forced sale or liquidation. Fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. These estimates are subjective in nature and involve uncertainties and matters of judgment, and therefore cannot be determined with precision.

Accounting standards define fair value as the price that would be received from selling an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value:

Level 1	Quoted prices (unadjusted) in active markets for identical assets or liabilities that a reporting entity can access at the measurement date
Level 2	Inputs other than quoted prices in active markets for identical assets and liabilities that are observable either directly or indirectly
Level 3	Unobservable inputs

The following methods and assumptions were used by us in estimating fair value disclosures for financial instruments:

•Cash and cash equivalents, receivables, other current assets, vehicle floorplan payable, accounts payable, other current liabilities, commercial paper, and variable rate debt: The amounts reported in the accompanying Consolidated Balance Sheets approximate fair value due to their short-term nature or the existence of variable interest rates that approximate prevailing market rates.

•Investments in Equity Securities: Our equity investments with readily determinable fair values are measured at fair value using Level 1 inputs. In the first quarter of 2021, we sold the remaining shares of one of our minority equity investments with a readily determinable fair value for total proceeds of $109.4 million. The fair value of our equity investments with readily determinable fair values totaled $2.2 million at December 31, 2021, and $101.9 million at December 31, 2020.

Our equity investment that does not have a readily determinable fair value is measured using the measurement alternative as permitted by accounting standards and was recorded at cost, to be subsequently adjusted for observable price changes. During the second quarter of 2021, we identified an observable transaction for the issuance of similar equity securities of the same issuer and we recorded an upward adjustment of $3.4 million to our equity investment based on the observable price changes. We have not recorded any impairments or downward adjustments to the carrying amounts of our equity investments as of December 31, 2021. The carrying amount of our equity investment without a readily determinable fair value was $56.7 million at December 31, 2021, and $50.0 million at December 31, 2020.

Investments in equity securities are reported in Other Assets in the accompanying Consolidated Balance Sheets. Realized and unrealized gains and losses are reported in Other Income, Net (non-operating) in the Consolidated Statements of Income and in the “Corporate and other” category of our segment information.

The following is the portion of unrealized gains recognized during the years ended December 31, 2021 and 2020, related to equity securities still held at December 31:

	2021		2020
Net gains recognized during the period on equity securities	$	10.9	$	131.5
Less: Net gains recognized during the period on equity securities sold during the period	7.5		63.4
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date	$	3.4	$	68.1

•Fixed rate long-term debt: Our fixed rate long-term debt consists primarily of amounts outstanding under our senior unsecured notes. We estimate the fair value of our senior unsecured notes using quoted prices for the

identical liability (Level 1). A summary of the aggregate carrying values and fair values of our fixed rate long-term debt at December 31 is as follows:

	2021		2020
Carrying value	$	2,858.4	$	2,101.8
Fair value	$	3,017.8	$	2,341.1

Nonfinancial assets such as goodwill, other intangible assets, and long-lived assets held and used are measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized or for a business combination. The fair values less costs to sell of long-lived assets or disposal groups held for sale are assessed each reporting period they remain classified as held for sale. Subsequent changes in the held for sale long-lived asset’s or disposal group’s fair value less cost to sell (increase or decrease) are reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset or disposal group at the time it was initially classified as held for sale.

The following table presents assets measured and recorded at fair value on a nonrecurring basis during the years ended December 31, 2021 and 2020:

	2021				2020
Description	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)		Gain/(Loss)		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)		Gain/(Loss)
Goodwill	$	—	$	—	$	457.5	$	(318.3)
Franchise rights and other	$	—	$	—	$	26.2	$	(59.9)
Equity investment	$	53.4	$	3.4	$	—	$	—
Right-of-use assets	$	—	$	(0.1)	$	5.0	$	(3.1)
Long-lived assets held and used	$	10.4	$	(3.1)	$	1.8	$	(9.2)

Goodwill

Goodwill for our reporting units and our franchise rights assets are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may exist.

Under accounting standards, we chose to make a qualitative evaluation about the likelihood of goodwill impairment for our annual testing as of April 30, 2021, and we determined that it was not more likely than not that the fair values of our reporting units were less than their carrying amounts.

During the first quarter of 2020, due to the impact of the COVID-19 pandemic on our results and the decrease in our market capitalization as of March 31, 2020, we recorded goodwill impairment charges as of $318.3 million of which $257.4 million related to our Premium Luxury reporting unit, $41.6 million related to our Collision Centers reporting unit, and $19.3 million related to our Parts Centers reporting unit. The non-cash impairment charges are reflected as Goodwill Impairment in the accompanying Unaudited Condensed Consolidated Statements of Operations and in the “Corporate and other” category of our segment information.

The quantitative goodwill impairment test requires a determination of whether the fair value of a reporting unit is less than its carrying value. We estimate the fair value of our reporting units using an “income” valuation approach, which discounts projected free cash flows of the reporting unit at a computed weighted average cost of capital as the discount rate. The income valuation approach requires the use of significant estimates and assumptions, which include revenue growth rates and future operating margins used to calculate projected future cash flows, weighted average cost of capital, and

future economic and market conditions. In connection with this process, we also reconcile the estimated aggregate fair values of our reporting units to our market capitalization, including consideration of a control premium that represents the estimated amount an investor would pay for our equity securities to obtain a controlling interest. We believe that this reconciliation process is consistent with a market participant perspective. We base our cash flow forecasts on our knowledge of the automotive industry, our recent performance, our expectations of our future performance, and other assumptions we believe to be reasonable but that are unpredictable and inherently uncertain. Actual future results may differ from those estimates. We also make certain judgments and assumptions in allocating shared assets and liabilities to determine the carrying values for each of our reporting units.

For our April 30, 2020 annual impairment test, we chose to make a qualitative evaluation about the likelihood of goodwill impairment and we determined that it was not more likely than not that the fair values of these reporting units were less than their carrying amounts.

For our April 30, 2019 annual impairment test, we chose to make a qualitative evaluation about the likelihood of goodwill impairment for our Domestic, Import, and Premium Luxury reporting units, and we determined that it was not more likely than not that the fair values of these reporting units were less than their carrying amounts. We elected to perform a quantitative goodwill impairment test for our Collision Centers and Parts Centers reporting units as of April 30, 2019, and no impairment charges resulted from the impairment test.

Other Intangible Assets

Our principal identifiable intangible assets are individual store rights under franchise agreements with vehicle manufacturers, which have indefinite lives and are tested for impairment annually as of April 30 or more frequently when events or changes in circumstances indicate that impairment may have occurred.

We elected to perform quantitative franchise rights impairment tests as of April 30, 2021, and no impairment charges resulted from these quantitative tests.

The quantitative impairment test for franchise rights requires the comparison of the franchise rights’ estimated fair value to carrying value by store. Fair values of rights under franchise agreements are estimated using Level 3 inputs by discounting expected future cash flows of the store. The forecasted cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates, margins, working capital requirements, capital expenditures, and cost of capital, for which we utilize certain market participant-based assumptions, using third-party industry projections, economic projections, and other marketplace data we believe to be reasonable.

During the first quarter of 2020, as a result of the impacts from the COVID-19 pandemic, we identified eight stores with franchise rights carrying values that exceeded their estimated fair values, and we recorded non-cash franchise rights impairment charges of $57.5 million during the three months ended March 31, 2020. For our April 30, 2020 annual impairment test, we elected to perform quantitative franchise rights impairment tests, and no additional impairment charges resulted from these quantitative tests.

For our April 30, 2019 annual impairment test, we elected to perform quantitative franchise rights impairment tests. As a result of these tests, we recorded non-cash impairment charges of $9.6 million in 2019 to reduce the carrying values of certain franchise rights to their estimated fair values.

The non-cash impairment charges are reflected as Franchise Rights Impairment in the accompanying Consolidated Statements of Income and in the “Corporate and other” category of our segment information.

In 2020, we also recorded non-cash impairment charges of $2.4 million to reduce the carrying value of certain finite-lived intangible assets to estimated fair value, which are included in Other (Income) Expense, Net in our Consolidated Statements of Income and in the “Corporate and other” category of our segment information.

Long-Lived Assets and Right-of-Use Assets

Fair value measurements for our long-lived assets and right-of-use assets are based on Level 3 inputs. Changes in fair value measurements are reviewed and assessed each quarter for properties classified as held for sale, or when an indicator of impairment exists for properties classified as held and used or for right-of-use assets. The valuation process is generally based on a combination of the market and replacement cost approaches. In certain cases, fair value measurements are based on pending agreements to sell the related assets.

In a market approach, we use transaction prices for comparable properties that have recently been sold. These transaction prices are adjusted for factors related to a specific property. We evaluate changes in local real estate markets, and/or recent market interest or negotiations related to a specific property. In a replacement cost approach, the cost to replace a specific long-lived asset is considered, which is adjusted for depreciation from physical deterioration, as well as functional and economic obsolescence, if present and measurable.

To validate the fair values determined under the valuation process noted above, we also obtain independent third-party appraisals for our properties and/or third-party brokers’ opinions of value, which are generally developed using the same valuation approaches described above, and we evaluate any recent negotiations or discussions with third-party real estate brokers related to a specific long-lived asset or market. 

The non-cash impairment charges recorded in 2021 and 2020, are included in Other (Income) Expense, Net (within Operating Income) in our Consolidated Statements of Income and are reported in the “Corporate and other” category of our segment information.

We had assets held for sale in continuing operations of $53.3 million as of December 31, 2021, and $25.5 million as of December 31, 2020, primarily related to property held for sale, as well as inventory, franchise rights, goodwill, and property of disposal groups held for sale. We had assets held for sale in discontinued operations of $1.1 million as of December 31, 2021, and $8.0 million as of December 31, 2020, primarily related to property held for sale. Assets held for sale are included in Other Current Assets in our Consolidated Balance Sheets.

Quantitative Information about Level 3 Fair Value Measurements

Description	Fair Value at March 31, 2020		Valuation Technique	Unobservable Input	Range (Average)
Franchise rights	$	24.6	Discounted cash flow	Weighted average cost of capital	8.5	%
				Discount rate	11.1% - 14.3% (12.1%)
				Long-term revenue growth rate	2.0	%
				Long-term pretax income margin	0.6% - 2.8% (1.4%)
				Contributory asset charges	4.2% - 12.1% (6.2%)

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Commitments and Contingencies

12 Months Ended

Dec. 31, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments And Contingencies

COMMITMENTS AND CONTINGENCIES

Legal Proceedings

We are involved, and will continue to be involved, in numerous legal proceedings arising out of the conduct of our business, including litigation with customers, wage and hour and other employment-related lawsuits, and actions brought by governmental authorities. Some of these lawsuits purport or may be determined to be class or collective actions and seek substantial damages or injunctive relief, or both, and some may remain unresolved for several years. We establish accruals for specific legal proceedings when it is considered probable that a loss has been incurred and the amount of the loss can be reasonably estimated. Our accruals for loss contingencies are reviewed quarterly and adjusted as additional information becomes available. We disclose the amount accrued if material or if such disclosure is necessary for our financial statements to not be misleading. If a loss is not both probable and reasonably estimable, or if an exposure to loss exists in excess of the amount accrued, we assess whether there is at least a reasonable possibility that a loss, or additional loss, may

have been incurred. If there is a reasonable possibility that a loss, or additional loss, may have been incurred, we disclose the estimate of the possible loss or range of loss if it is material or a statement that such an estimate cannot be made. Our evaluation of whether a loss is reasonably possible or probable is based on our assessment and consultation with legal counsel regarding the ultimate outcome of the matter.

As of December 31, 2021 and 2020, we have accrued for the potential impact of loss contingencies that are probable and reasonably estimable, and there was no indication of a reasonable possibility that a material loss, or additional material loss, may have been incurred. We do not believe that the ultimate resolution of any of these matters will have a material adverse effect on our results of operations, financial condition, or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our results of operations, financial condition, or cash flows.

Other Matters

AutoNation, acting through its subsidiaries, is the lessee under many real estate leases that provide for the use by our subsidiaries of their respective dealership premises. Pursuant to these leases, our subsidiaries generally agree to indemnify the lessor and other related parties from certain liabilities arising as a result of the use of the leased premises, including environmental liabilities, or a breach of the lease by the lessee. Additionally, from time to time, we enter into agreements with third parties in connection with the sale of assets or businesses in which we agree to indemnify the purchaser or related parties from certain liabilities or costs arising in connection with the assets or business. Also, in the ordinary course of business in connection with purchases or sales of goods and services, we enter into agreements that may contain indemnification provisions. In the event that an indemnification claim is asserted, our liability would be limited by the terms of the applicable agreement.

From time to time, primarily in connection with dispositions of automotive stores, our subsidiaries assign or sublet to the dealership purchaser the subsidiaries’ interests in any real property leases associated with such stores. In general, our subsidiaries retain responsibility for the performance of certain obligations under such leases to the extent that the assignee or sublessee does not perform, whether such performance is required prior to or following the assignment or subletting of the lease. Additionally, AutoNation and its subsidiaries generally remain subject to the terms of any guarantees made by us in connection with such leases. We generally have indemnification rights against the assignee or sublessee in the event of non-performance under these leases, as well as certain defenses. We presently have no reason to believe that we or our subsidiaries will be called on to perform under any such remaining assigned leases or subleases. We estimate that lessee rental payment obligations during the remaining terms of these leases with expirations ranging from 2022 to 2034 are approximately $8 million at December 31, 2021. There can be no assurance that any performance of AutoNation or its subsidiaries required under these leases would not have a material adverse effect on our business, financial condition, and cash flows.

At December 31, 2021, surety bonds, letters of credit, and cash deposits totaled $104.8 million, of which $39.7 million were letters of credit. In the ordinary course of business, we are required to post performance and surety bonds, letters of credit, and/or cash deposits as financial guarantees of our performance. We do not currently provide cash collateral for outstanding letters of credit.

In the ordinary course of business, we are subject to numerous laws and regulations, including automotive, environmental, health and safety, and other laws and regulations. We do not anticipate that the costs of such compliance will have a material adverse effect on our business, results of operations, cash flows, or financial condition, although such outcome is possible given the nature of our operations and the extensive legal and regulatory framework applicable to our business. We do not have any material known environmental commitments or contingencies.

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Business and Credit Concentrations

12 Months Ended

Dec. 31, 2021

Risks and Uncertainties [Abstract]

Business And Credit Concentrations

BUSINESS AND CREDIT CONCENTRATIONSWe own and operate franchised automotive stores in the United States pursuant to franchise agreements with vehicle manufacturers. In 2021, approximately 65% of our total revenue was generated by our stores in Florida, Texas, and California. Franchise agreements generally provide the manufacturers or distributors with considerable influence over the

operations of the store. The success of any franchised automotive dealership is dependent, to a large extent, on the financial condition, management, marketing, production, and distribution capabilities of the vehicle manufacturers or distributors of which we hold franchises. We had receivables from manufacturers or distributors of $148.4 million at December 31, 2021, and $210.0 million at December 31, 2020. Additionally, a large portion of our Contracts-in-Transit included in Receivables, net, in the accompanying Consolidated Balance Sheets, are due from automotive manufacturers’ captive finance subsidiaries which provide financing directly to our new and used vehicle customers.

We purchase substantially all of our new vehicles from various manufacturers or distributors at the prevailing prices available to all franchised dealers. Additionally, we finance our new vehicle inventory primarily with automotive manufacturers’ captive finance subsidiaries. Our sales volume could be adversely impacted by the manufacturers’ or distributors’ inability to supply the stores with an adequate supply of vehicles and related financing.

We are subject to a concentration of risk in the event of financial distress of or other adverse event related to a major vehicle manufacturer or related lender or supplier. The core brands of vehicles that we sell, representing approximately 90% of the new vehicles that we sold in 2021, are manufactured by Toyota (including Lexus), Honda, Ford, General Motors, Stellantis, Mercedes-Benz, BMW, and Volkswagen (including Audi and Porsche). Our business could be materially adversely impacted by a bankruptcy of or other adverse event related to a major vehicle manufacturer or related lender or supplier.

Concentrations of credit risk with respect to non-manufacturer trade receivables are limited due to the wide variety of customers and markets in which our products are sold as well as their dispersion across many different geographic areas in the United States. Consequently, at December 31, 2021, we do not consider AutoNation to have any significant non-manufacturer concentrations of credit risk.

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Segment Information

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Segment Information

SEGMENT INFORMATION

At December 31, 2021, 2020, and 2019, we had three reportable segments: (1) Domestic, (2) Import, and (3) Premium Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by General Motors, Ford, and Stellantis. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Toyota, Honda, Subaru, and Nissan. Our Premium Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Mercedes-Benz, BMW, Audi, Lexus, and Jaguar Land Rover. The franchises in each segment also sell used vehicles, parts and automotive services, and automotive finance and insurance products.

“Corporate and other” is comprised of our other businesses, including collision centers, auction operations, AutoNation USA used vehicle stores, and parts distribution centers, all of which generate revenues but do not meet the quantitative thresholds for reportable segments, as well as unallocated corporate overhead expenses and other income items.

The reportable segments identified above are the business activities of the Company for which discrete financial information is available and for which operating results are regularly reviewed by our chief operating decision maker to allocate resources and assess performance. Our chief operating decision maker is our Chief Executive Officer.

The following tables provide information on revenues from external customers, segment income of our reportable segments, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures.

	Year Ended December 31, 2021
	Domestic		Import		Premium Luxury		Corporate and other		Total
Revenues from external customers	$	7,959.9	$	7,798.5	$	9,229.9	$	855.7	$	25,844.0
Floorplan interest expense	$	7.9	$	5.1	$	8.8	$	3.9	$	25.7
Depreciation and amortization	$	39.3	$	33.9	$	64.8	$	55.3	$	193.3
Segment income (loss)(1)	$	595.8	$	714.7	$	837.4	$	(270.8)	$	1,877.1
Capital expenditures	$	15.5	$	27.1	$	80.0	$	109.3	$	231.9
Segment assets	$	1,758.5	$	1,424.2	$	2,668.6	$	3,092.3	$	8,943.6

	Year Ended December 31, 2020
	Domestic		Import		Premium Luxury		Corporate and other		Total
Revenues from external customers	$	6,490.6	$	5,988.0	$	7,202.8	$	708.6	$	20,390.0
Floorplan interest expense	$	23.8	$	12.9	$	21.8	$	5.3	$	63.8
Depreciation and amortization	$	39.8	$	33.6	$	60.5	$	65.0	$	198.9
Segment income (loss)(1)	$	355.2	$	386.4	$	478.2	$	(720.4)	$	499.4
Capital expenditures	$	17.9	$	25.7	$	51.6	$	42.0	$	137.2
Segment assets	$	2,130.0	$	1,764.7	$	2,752.5	$	3,240.0	$	9,887.2

	Year Ended December 31, 2019
	Domestic		Import		Premium Luxury		Corporate and other		Total
Revenues from external customers	$	6,671.4	$	6,468.7	$	7,434.8	$	760.8	$	21,335.7
Floorplan interest expense	$	51.8	$	30.7	$	47.3	$	8.6	$	138.4
Depreciation and amortization	$	37.2	$	33.4	$	53.5	$	56.4	$	180.5
Segment income (loss)(1)	$	257.6	$	318.6	$	381.1	$	(272.1)	$	685.2
Capital expenditures	$	38.6	$	23.2	$	145.3	$	50.3	$	257.4
Segment assets	$	2,483.6	$	1,842.1	$	3,150.5	$	3,067.1	$	10,543.3
(1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.

The following is a reconciliation of the total of the reportable segments’ revenue and segment income to our consolidated revenue and income from continuing operations before income taxes, respectively.

	Years Ended December 31,
	2021		2020		2019
Total external revenues for reportable segments	$	24,988.3	$	19,681.4	$	20,574.9
Corporate and other revenues	855.7		708.6		760.8
Total consolidated revenues	$	25,844.0	$	20,390.0	$	21,335.7

	Years Ended December 31,
	2021		2020		2019
Total segment income for reportable segments	$	2,147.9	$	1,219.8	$	957.3
Corporate and other	(270.8)		(720.4)		(272.1)
Other interest expense	(93.0)		(93.7)		(106.7)
Other income, net	24.3		144.4		34.1
Income from continuing operations before income taxes	$	1,808.4	$	550.1	$	612.6

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Multiemployer Pension Plans

12 Months Ended

Dec. 31, 2021

Multiemployer Plan, Pension, Significant [Abstract]

Multiemployer Pension Plans

MULTIEMPLOYER PENSION PLANS

Five of our 247 stores participate in multiemployer pension plans. We contribute to these multiemployer defined benefit pension plans under the terms of collective-bargaining agreements that cover certain of our union-represented employees. The risks of participating in these multiemployer plans are different from single-employer plans in the following aspects:

a.    Assets contributed to the multiemployer plan by one employer may be used to provide benefits to employees of other participating employers.

b.    If a participating employer stops contributing to the plan, the unfunded obligations of the plan may be assumed by the remaining participating employers.

c.    If we choose to stop participating in a multiemployer plan, we may be required to pay the plan an amount based on the underfunded status of the plan, subject to certain limits, referred to as a withdrawal liability.

Both of the multiemployer pension plans in which we participate are designated as being in “red zone” status, as defined by the Pension Protection Act (PPA) of 2006. Our participation in these plans for the year ended December 31, 2021, is outlined in the table below. The “EIN/Pension Plan Number” column provides the Employer Identification Number (EIN) and the three-digit plan number. The most recent PPA zone status available in 2021 and 2020 is based on information that we received from the plans and is certified by each plan’s actuary. Among other factors, plans in the red zone are generally less than 65 percent funded. The last column lists the expiration date of the collective-bargaining

agreements to which the plans are subject. A rehabilitation plan has been implemented for each plan. There have been no significant changes that affect the comparability of 2021, 2020, and 2019 contributions.

		Pension Protection Act Zone Status		Contributions of AutoNation ($ in millions) (1)							Expiration Date of Collective-Bargaining Agreement
Pension Fund	EIN/Pension PlanNumber	2021	2020	2021		2020		2019		Surcharge Imposed (2)
Automotive Industries Pension Plan	94-1133245 - 001	Red	Red	$	1.2	$	1.4	$	1.6	Yes	(3)
IAM National Pension Fund	51-6031295- 002	Red	Red	0.2		0.2		0.2		Yes	(4)
Other funds				0.1		0.1		0.1
Total contributions				$	1.5	$	1.7	$	1.9

(1)    Our stores were not listed in the Automotive Industries Pension Plan’s or IAM National Pension Fund’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2020 or 2019.

(2)    We paid surcharges to the Automotive Industries Pension Plan of $0.5 million, $0.6 million, and $0.8 million in 2021, 2020, and 2019 respectively. Surcharges to the IAM National Pension Fund were de minimis.

(3)    We are party to three collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. One agreement has an expiration date of December 31, 2022, and one agreement has an expiration date of May 31, 2024. One agreement expired on December 31, 2021, and is currently extended during collective bargaining for a new agreement.

(4)    We are party to two collective-bargaining agreements that require contributions to the IAM National Pension Fund. Both agreements have an expiration date of August 30, 2023.

In the event that we cease participating in these plans, we could be assessed withdrawal liabilities, which we estimate are approximately $16 million for the Automotive Industries Pension Plan and approximately $4 million for the IAM National Pension Fund.

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Description of Business and Summary of Significant Accounting Policies (Policies)

12 Months Ended

Dec. 31, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

The accompanying Consolidated Financial Statements include the accounts of AutoNation, Inc. and its subsidiaries. All of our automotive dealership subsidiaries are indirectly wholly owned by the parent company, AutoNation, Inc. Intercompany accounts and transactions have been eliminated in the consolidation.

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. In preparing these financial statements, management has made its best estimates and judgments of certain amounts included in the financial statements. We base our estimates and judgments on historical experience and other assumptions that we believe are reasonable. However, application of these accounting policies involves the exercise of judgment and use of assumptions as to future uncertainties and, as a result, actual results could differ materially from these estimates. We periodically evaluate estimates and assumptions used in the preparation of the financial statements and make changes on a prospective basis when adjustments are necessary. Such estimates and assumptions affect, among other things, our goodwill, indefinite-lived intangible asset, and long-lived asset valuations; inventory valuation; equity investment valuation; assets held for sale; accruals for chargebacks against revenue recognized from the sale of finance and insurance products; accruals related to self-insurance programs; certain legal proceedings; assessment of the annual income tax expense; deferred income taxes and income tax contingencies; the allowance for expected credit losses; and measurement of performance-based compensation costs.

Cash and Cash Equivalents

We consider all highly liquid investments with a maturity of three months or less as of the date of purchase to be cash equivalents unless the investments are legally or contractually restricted for more than three months. Under our cash management system, outstanding checks that are in excess of the cash balances at certain banks are included in Accounts Payable in the Consolidated Balance Sheets and changes in these amounts are reflected in operating cash flows in the accompanying Consolidated Statements of Cash Flows.

Inventory

Inventory consists primarily of new and used vehicles held for sale, valued at the lower of cost or net realizable value using the specific identification method. Cost includes acquisition, reconditioning, dealer installed accessories, and transportation expenses. Our new vehicle inventory costs are generally reduced by manufacturer holdbacks (percentage of either the manufacturer’s suggested retail price or invoice price of a new vehicle that the manufacturer repays to the dealer), incentives, floorplan assistance, and non-reimbursement-based manufacturer advertising assistance. Parts, accessories, and other inventory are valued at the lower of cost or net realizable value.

Property and Equipment, net

Property and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements are capitalized, while minor replacements, maintenance, and repairs are charged to expense as incurred. In addition, we capitalize interest on borrowings during the active construction period of capital projects. Capitalized interest is added to the cost of the assets and depreciated over the estimated useful lives of the assets. Leased property meeting certain criteria is capitalized as a finance lease right-of-use asset and the present value of the related lease payments is recorded as a liability and included in current and/or long-term debt based on the lease term. When property is retired or otherwise disposed of, the cost and accumulated depreciation are removed from the accounts and any resulting gain or loss is reflected in Other (Income) Expense, Net (within Operating Income) in the Consolidated Statements of Income. See Note 6 of the Notes to Consolidated Financial Statements for detailed information about our property and equipment.

Depreciation is recorded over the estimated useful lives of the assets involved using the straight-line method. Leasehold improvements and finance lease right-of-use assets are amortized to depreciation expense over the estimated useful life of the asset or the respective lease term used in determining lease classification, whichever is shorter. The range of estimated useful lives is as follows:

Buildings and improvements    5 to 40 years

Furniture, fixtures, and equipment    3 to 10 years

We continually evaluate property and equipment, including leasehold improvements, to determine whether events or changes in circumstances have occurred that may warrant revision of the estimated useful life or whether the remaining balance should be evaluated for possible impairment. Such events or changes may include a significant decrease in market value, a significant change in the business climate in a particular market, a current expectation that more-likely-than-not a long-lived asset will be sold or otherwise disposed of significantly before the end of its previously estimated useful life, or a current-period operating or cash flow loss combined with historical losses or projected future losses. We use an estimate of the related undiscounted cash flows over the remaining life of the asset (asset group) in assessing whether an asset (asset group) is recoverable. If the asset (asset group) is not recoverable, we determine the fair value of the asset (asset group) based on Level 3 inputs, and measure impairment losses based upon the amount by which the carrying amount of the asset (asset group) exceeds the fair value. If we recognize an impairment loss on a depreciable long-lived asset, the adjusted carrying amount of the asset becomes its new cost basis, which is depreciated over the remaining useful life of that asset.

When property and equipment are identified as held for sale, we reclassify the held for sale assets to Other Current Assets and cease recording depreciation. We measure each long-lived asset or disposal group at the lower of its carrying amount or fair value less cost to sell and recognize a loss for any initial adjustment of the long-lived asset’s or disposal group’s carrying amount to fair value less cost to sell in the period the “held for sale” criteria are met. Such valuations include estimations of fair values and incremental direct costs to transact a sale. The fair value measurements for our long-lived assets held for sale are based on Level 3 inputs, which consider information obtained from third-party real estate valuation sources, or, in certain cases, pending agreements to sell the related assets. We recognize an impairment loss if the amount of the asset’s or disposal group’s carrying amount exceeds the asset’s or disposal group’s estimated fair value less cost to sell.

Goodwill and Other Intangible Assets, net

Goodwill consists of the cost of acquired businesses in excess of the fair value of the net assets acquired. Additionally, other intangible assets are separately recognized if the benefit of the intangible asset is obtained through contractual or other legal rights, or if the intangible asset can be sold, transferred, licensed, rented, or exchanged, regardless of our intent to do so.

Our principal identifiable intangible assets are rights under franchise agreements with vehicle manufacturers. We generally expect our franchise agreements to survive for the foreseeable future and, when the agreements do not have indefinite terms, anticipate routine renewals of the agreements without substantial cost. The contractual terms of our franchise agreements provide for various durations, ranging from one year to no expiration date, and in certain cases, manufacturers have undertaken to renew such franchises upon expiration so long as the dealership is in compliance with the terms of the agreement. However, in general, the states in which we operate have automotive dealership franchise laws that provide that, notwithstanding the terms of any franchise agreement, it is unlawful for a manufacturer to terminate or not renew a franchise unless “good cause” exists. It is generally difficult, outside of bankruptcy, for a manufacturer to terminate or not renew a franchise under these franchise laws, which were designed to protect dealers. In addition, in our experience and historically in the automotive retail industry, dealership franchise agreements are rarely involuntarily terminated or not renewed by the manufacturer outside of bankruptcy. Accordingly, we believe that our franchise agreements will contribute to cash flows for the foreseeable future and have indefinite lives. Other intangible assets are amortized using a straight-line method over their useful lives, generally ranging from three to thirty years.

Stock-Based Compensation

We grant stock-based awards in the form of time-based and performance-based restricted stock units (“RSUs”), which are issued from our treasury stock upon vesting. Compensation cost for RSUs is based on the closing price of our common stock on the date of grant. Prior to 2017, we also granted stock options and restricted stock.Certain of our equity-based compensation plans contain provisions that provide for vesting of awards upon retirement. Accordingly, compensation cost for time-based RSUs, restricted stock awards, and stock options is recognized on a straight-line basis over the shorter of the stated vesting period or the period until associates become retirement-eligible. Compensation cost for performance-based RSUs is recognized over the requisite service period based on the expected achievement level of the performance goals, which is evaluated over the performance period. The amount of compensation cost recognized on performance-based RSUs depends on the relative satisfaction of the performance condition based on performance to date. We account for forfeitures of stock-based awards as they occur.

Insurance

Under our self-insurance programs, we retain various levels of aggregate loss limits, per claim deductibles, and claims-handling expenses as part of our various insurance programs, including property and casualty, employee medical benefits, automobile, and workers’ compensation. Costs in excess of this retained risk per claim may be insured under various contracts with third-party insurance carriers. We review our claim and loss history on a periodic basis to assist in assessing our future liability. The ultimate costs of these retained insurance risks are estimated by management and by third-party actuarial evaluation of historical claims experience, adjusted for current trends and changes in claims-handling procedures.

Manufacturer Incentives And Other Rebates

We receive various incentives from manufacturers based on achieving certain objectives, such as specified sales volume targets, as well as other objectives, including maintaining standards of a particular vehicle brand, which may include but are not limited to facility image and design requirements, customer satisfaction survey results, and training standards, among others. These incentives are typically based upon units purchased or sold. These manufacturer incentives are recognized as a reduction of new vehicle cost of sales when earned, generally at the time the related vehicles are sold or upon attainment of the particular program goals, whichever is later.

We also receive manufacturer rebates and assistance for holdbacks, floorplan interest, and non-reimbursement-based advertising expenses (described below), which are reflected as a reduction in the carrying value of each vehicle purchased by us. We recognize holdbacks, floorplan interest assistance, non-reimbursement-based advertising rebates, cash incentives, and other rebates received from manufacturers that are tied to specific vehicles as a reduction to cost of sales as the related vehicles are sold.

Advertising

We generally expense the cost of advertising as incurred, net of earned manufacturer reimbursements for specific advertising costs and other discounts.

Reimbursable advertising assistance

Manufacturer advertising rebates that are reimbursements of costs associated with specific advertising expenses are earned in accordance with the respective manufacturers’ reimbursement-based advertising assistance programs, which is typically after we have incurred the corresponding advertising expenses, and are reflected as a reduction of advertising expense.

Parts and Service Internal Profit

Our parts and service departments recondition the majority of used vehicles acquired by our used vehicle departments and perform preparatory work on new vehicles acquired by our new vehicle departments. The parts and service departments charge the new and used vehicle departments as if they were third parties in order to account for total activity performed by that department. Revenues and costs of sales associated with the internal work performed by our parts and service departments are reflected in our parts and service results in our Consolidated Statements of Income. New and used vehicle revenues and costs of sales are reduced by the amount of the intracompany charge. As a result, the revenues and costs of sales associated with the internal work performed by our parts and service departments are eliminated in consolidation. We also defer internal profit associated with the internal work performed by our parts and service departments on our vehicle inventory until such vehicles have been sold.

Income Taxes

We file a consolidated federal income tax return. Deferred income taxes have been provided for temporary differences between the recognition of revenue and expenses for financial and income tax reporting purposes and between the tax basis of assets and liabilities and their reported amounts in the financial statements.

Earnings (Loss) Per Share

Basic earnings per share is computed by dividing net income by the weighted average number of common shares outstanding for the period, including vested RSU awards. Diluted earnings per share is computed by dividing net income by the weighted average number of shares outstanding, noted above, adjusted for the dilutive effect of stock options and unvested RSU awards.

Taxes Assessed by Governmental Authorities

Taxes assessed by governmental authorities that are directly imposed on revenue transactions are excluded from revenue.

Revenue Recognition

New and Used Vehicle

We sell new vehicles at our franchised dealerships and used vehicles at our franchised dealerships and AutoNation USA used vehicle stores. The transaction price for a vehicle sale is determined with the customer at the time of sale. Customers often trade in their own vehicle to apply toward the purchase of a retail new or used vehicle. The “trade-in” vehicle is a

type of noncash consideration measured at fair value, based on external and internal market data for the specific vehicle, and applied as payment to the contract price for the purchased vehicle.

When we sell a new or used vehicle, we typically transfer control at a point in time upon delivery of the vehicle to the customer, which is generally at time of sale, as the customer is able to direct the use of, and obtain substantially all of the benefits from, the vehicle at such time. We do not directly finance our customers’ vehicle purchases or leases. In many cases, we arrange third-party financing for the retail sale or lease of vehicles to our customers in exchange for a fee paid to us by the third-party financial institution. We receive payment directly from the customer at the time of sale or from the third-party financial institution (referred to as contracts-in-transit or vehicle receivables, which are part of our receivables from contracts with customers) within a short period of time following the sale. We establish provisions, which are not significant, for estimated returns and warranties on the basis of both historical information and current trends.

We also offer auction services at our AutoNation-branded automotive auctions, revenue from which is included within Used Vehicle wholesale revenue. The transaction price for auction services is based on an established pricing schedule and determined with the customer at the time of sale, and payment is due upon completion of service. We satisfy our performance obligations related to auction services at the point in time that control transfers to the customer, which is when the service is completed.

Parts and Service

We sell parts and automotive services related to customer-paid repairs and maintenance, repairs and maintenance under manufacturer warranties and extended service contracts, and collision-related repairs. We also sell parts through our wholesale and retail counter channels.

Each automotive repair and maintenance service is a single performance obligation that includes both the parts and labor associated with the service. Payment for automotive service work is typically due upon completion of the service, which is generally completed within a short period of time from contract inception. The transaction price for automotive repair and maintenance services is based on the parts used, the number of labor hours applied, and standardized hourly labor rates. We satisfy our performance obligations, transfer control, and recognize revenue over time for automotive repair and maintenance services because we are creating an asset with no alternative use and we have an enforceable right to payment for performance completed to date. We use an input method to recognize revenue and measure progress based on labor hours expended relative to the total labor hours expected to be expended to satisfy the performance obligation. We have determined labor hours expended to be the relevant measure of work performed to complete the automotive repair or maintenance service for the customer. As a practical expedient, since automotive repair and maintenance service contracts have an original duration of one year or less, we do not consider the time value of money, and we do not disclose estimated revenue expected to be recognized in the future for performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue.

The transaction price for wholesale and retail counter parts sales is determined at the time of sale based on the quantity and price of each product purchased. Payment is typically due at time of sale, or within a short period of time following the sale. We establish provisions, which are not significant, for estimated parts returns based on historical information and current trends. Delivery methods of wholesale and retail counter parts vary; however, we generally consider control of wholesale and retail counter parts to transfer when the products are shipped, which typically occurs the same day as or within a few days of the sale.

Finance and Insurance

We sell and receive a commission on the following types of finance and insurance products: extended service contracts, maintenance programs, guaranteed auto protection (known as “GAP,” this protection covers the shortfall between a customer’s loan balance and insurance payoff in the event of a casualty), “tire and wheel” protection, and theft protection products, among others. We offer products that are sold and administered by independent third parties, including the vehicle manufacturers’ captive finance subsidiaries.

Pursuant to our arrangements with these third-party providers, we sell the products on a commission basis, and, for certain products, we also participate in future profit pursuant to retrospective commission arrangements with the issuers of those contracts through the life of the related contracts. For retrospective commission arrangements, we are paid annually based on the annual performance of the issuers’ product portfolio. For the majority of finance and insurance product sales, our performance obligation is to arrange for the provision of goods or services by another party. Our performance obligation is satisfied when this arrangement is made, which is when the finance and insurance product is delivered to the end-customer, generally at the time of the vehicle sale. As agent, we recognize revenue in the amount of any fee or commission to which we expect to be entitled, which is the net amount of consideration that we retain after paying the third-party provider the consideration received in exchange for the goods or services to be fulfilled by that party.

The retrospective commission we earn on each product sold is a form of variable consideration that is subject to constraint due to it being highly susceptible to factors outside our influence and control. Our agreements with the third-party administrators generally provide for an annual retrospective commission payout based on the product portfolio performance for that year. We estimate variable consideration related to retrospective commissions and perform a constraint analysis using the expected value method based on the historical performance of the product portfolios and current trends to estimate the amount of retrospective commissions to which we expect we will be entitled. At each reporting period, we reassess our expectations about the amount of retrospective commission variable consideration to which we expect to be entitled and recognize revenue when we no longer believe a significant revenue reversal is probable.

Additionally, we may be charged back for commissions related to finance and insurance products in the event of early termination, default, or prepayment of the contracts by end-customers (“chargebacks”). An estimated refund liability for chargebacks against the revenue recognized from sales of finance and insurance products is recorded in the period in which the related revenue is recognized and is based primarily on our historical chargeback experience. We update our measurement of the chargeback liability at each reporting date for changes in expectations about the amount of chargebacks. See Note 10 of the Notes to Consolidated Financial Statements for more information regarding chargeback liabilities.

We also sell a vehicle maintenance program (the Vehicle Care Program or “VCP”) where we act as the principal in the sale since we have the primary responsibility to provide the specified services to the customer under the VCP contract. When a VCP product is sold in conjunction with the sale of a vehicle to the same customer, the stand-alone selling prices of each product are based on observable selling prices. Under a VCP contract, a customer purchases a specific number of maintenance services to be redeemed at an AutoNation location over a five-year term from the date of purchase. We satisfy our performance obligations and recognize revenue as maintenance services are rendered, since the customer benefits when we have completed the maintenance service. Although payment is due from the customer at the time of sale and services are rendered at points in time during a five-year contract term, these contracts do not contain a significant financing component.

Impairment Of Long-Lived Assets

Nonfinancial assets such as goodwill, other intangible assets, and long-lived assets held and used are measured at fair value when there is an indicator of impairment and recorded at fair value only when impairment is recognized or for a business combination. The fair values less costs to sell of long-lived assets or disposal groups held for sale are assessed each reporting period they remain classified as held for sale. Subsequent changes in the held for sale long-lived asset’s or disposal group’s fair value less cost to sell (increase or decrease) are reported as an adjustment to its carrying amount, except that the adjusted carrying amount cannot exceed the carrying amount of the long-lived asset or disposal group at the time it was initially classified as held for sale.

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Revenue Recognition (Tables)

12 Months Ended

Dec. 31, 2021

Revenue Recognition [Abstract]

Disaggregation of Revenue

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.

	Year Ended December 31, 2021
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	3,601.8	$	3,969.8	$	4,510.1	$	—	$	12,081.7
Used vehicle	2,875.0		2,370.5		3,067.4		325.9		8,638.8
Parts and service	1,007.6		950.0		1,246.7		502.3		3,706.6
Finance and insurance, net	469.1		489.6		401.0		24.8		1,384.5
Other	6.4		18.6		4.7		2.7		32.4
	$	7,959.9	$	7,798.5	$	9,229.9	$	855.7	$	25,844.0
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	7,260.7	$	7,079.0	$	8,197.6	$	535.6	$	23,072.9
Goods and services transferred over time(2)	699.2		719.5		1,032.3		320.1		2,771.1
	$	7,959.9	$	7,798.5	$	9,229.9	$	855.7	$	25,844.0

	Year Ended December 31, 2020
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	3,411.1	$	3,283.7	$	3,723.8	$	—	$	10,418.6
Used vehicle	1,781.4		1,516.5		2,125.9		177.5		5,601.3
Parts and service	891.5		811.3		1,058.1		496.5		3,257.4
Finance and insurance, net	370.5		361.7		294.7		32.4		1,059.3
Other	36.1		14.8		0.3		2.2		53.4
	$	6,490.6	$	5,988.0	$	7,202.8	$	708.6	$	20,390.0
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	5,841.6	$	5,343.8	$	6,301.3	$	413.7	$	17,900.4
Goods and services transferred over time(2)	649.0		644.2		901.5		294.9		2,489.6
	$	6,490.6	$	5,988.0	$	7,202.8	$	708.6	$	20,390.0

	Year Ended December 31, 2019
	Domestic		Import		Premium Luxury		Corporate and other(1)		Total
Major Goods/Service Lines
New vehicle	$	3,502.5	$	3,695.6	$	3,968.4	$	—	$	11,166.5
Used vehicle	1,769.5		1,501.9		2,045.6		149.5		5,466.5
Parts and service	959.0		889.7		1,136.0		587.4		3,572.1
Finance and insurance, net	354.6		368.3		279.2		21.2		1,023.3
Other	85.8		13.2		5.6		2.7		107.3
	$	6,671.4	$	6,468.7	$	7,434.8	$	760.8	$	21,335.7
Timing of Revenue Recognition
Goods and services transferred at a point in time	$	5,969.6	$	5,768.3	$	6,467.5	$	399.3	$	18,604.7
Goods and services transferred over time(2)	701.8		700.4		967.3		361.5		2,731.0
	$	6,671.4	$	6,468.7	$	7,434.8	$	760.8	$	21,335.7
(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	$	93.8	$	33.3	$	44.4	$	16.1

Contract Assets and Liabilities

The following table provides the balances at December 31 of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities:

	2021		2020		2019
Receivables from contracts with customers, net	$	539.9	$	595.0	$	662.0
Contract Asset (Current)	$	30.4	$	25.7	$	26.7
Contract Asset (Long-Term)	$	14.2	$	10.2	$	7.0
Contract Liability (Current)	$	33.6	$	32.5	$	32.6
Contract Liability (Long-Term)	$	60.5	$	56.0	$	57.7

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 year from amounts included in the contract liability balance at the beginning of the period and performance obligations satisfied in previous periods:

	2021		2020		2019
Amounts included in contract liability at the beginning of the period	$	32.1	$	31.0	$	35.1
Performance obligations satisfied in previous periods	$	19.4	$	19.0	$	9.3

Other significant changes include contract assets reclassified to receivables of $25.0 million during 2021 and $26.1 million in 2020.

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Earnings Per Share (Tables)

12 Months Ended

Dec. 31, 2021

Earnings Per Share [Abstract]

Basic and Diluted EPS

The following table presents the calculation of basic and diluted EPS:

	2021		2020		2019
Net income from continuing operations	$	1,373.3	$	381.8	$	450.8
Loss from discontinued operations, net of income taxes	(0.3)		(0.2)		(0.8)
Net income	$	1,373.0	$	381.6	$	450.0
Basic weighted average common shares outstanding	74.2		88.3		90.1
Dilutive effect of stock options and unvested RSUs	0.8		0.4		0.4
Diluted weighted average common shares outstanding	75.0		88.7		90.5
Basic EPS amounts(1):
Continuing operations	$	18.51	$	4.32	$	5.00
Discontinued operations	$	—	$	—	$	(0.01)
Net income	$	18.50	$	4.32	$	4.99
Diluted EPS amounts(1):
Continuing operations	$	18.31	$	4.30	$	4.98
Discontinued operations	$	—	$	—	$	(0.01)
Net income	$	18.31	$	4.30	$	4.97
(1) EPS amounts are calculated discretely and, therefore, may not add up to the total due to rounding.

Anti-Dilutive Equity Instruments Excluded From The Computation Of Diluted Earnings Per Share

A summary of anti-dilutive equity instruments excluded from the computation of diluted EPS is as follows:

	2021	2020	2019
Anti-dilutive equity instruments excluded from the computation of diluted EPS	—	1.7	2.4

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Receivables, Net (Tables)

12 Months Ended

Dec. 31, 2021

Receivables [Abstract]

Components Of Receivables, Net Of Allowances For Expected Credit Losses

The components of receivables, net of allowances for expected credit losses, at December 31 are as follows:

	2021		2020
Contracts-in-transit and vehicle receivables	$	347.4	$	445.8
Trade receivables	162.6		138.0
Manufacturer receivables	148.4		210.0
Other	77.0		55.1
	735.4		848.9
Less: allowances for expected credit losses	(5.4)		(3.7)
Receivables, net	$	730.0	$	845.2

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Inventory and Vehicle Floorplan Payable (Tables)

12 Months Ended

Dec. 31, 2021

Inventory And Vehicle Floorplan Payable [Abstract]

Components Of Inventory

The components of inventory at December 31 are as follows:

	2021		2020
New vehicles	$	515.1	$	1,761.9
Used vehicles	1,109.3		648.4
Parts, accessories, and other	223.5		188.2
Inventory	$	1,847.9	$	2,598.5

Components Of Vehicle Floorplan Payable

The components of vehicle floorplan payables at December 31 are as follows:

	2021		2020
Vehicle floorplan payable - trade	$	489.9	$	1,541.7
Vehicle floorplan payable - non-trade	967.7		1,218.2
Vehicle floorplan payable	$	1,457.6	$	2,759.9

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Property and Equipment, Net (Tables)

12 Months Ended

Dec. 31, 2021

Property, Plant and Equipment [Abstract]

Property and Equipment, Net

A summary of property and equipment, net, at December 31 is as follows:

	2021		2020
Land	$	1,471.8	$	1,417.4
Buildings and improvements	2,466.0		2,333.3
Furniture, fixtures, and equipment	1,262.9		1,040.3
	5,200.7		4,791.0
Less: accumulated depreciation and amortization	(1,781.2)		(1,652.9)
Property and equipment, net	$	3,419.5	$	3,138.1

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Goodwill and Intangible Assets, Net (Tables)

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets, Net

Goodwill and intangible assets, net, at December 31 consisted of the following:

	2021		2020
Goodwill	$	1,235.3	$	1,185.0
Franchise rights - indefinite-lived	$	727.5	$	509.0
Other intangible assets	24.0		19.6
	751.5		528.6
Less: accumulated amortization	(8.0)		(7.1)
Intangible assets, net	$	743.5	$	521.5

Goodwill Allocated to Reporting Units and Changes in Carrying Amounts

Goodwill allocated to our reporting units and changes in the carrying amount of goodwill for the years ended December 31, 2021 and 2020, were as follows:

	Domestic		Import		Premium Luxury		Collision Centers		Parts Centers		Corporate & Other		Consolidated
Balance as of January 1, 2020
Goodwill	$	367.3	$	498.9	$	714.9	$	41.7	$	19.1	$	1,470.0	$	3,111.9
Accumulated impairment losses	(140.0)		—		—		—		—		(1,470.0)		(1,610.0)
	227.3		498.9		714.9		41.7		19.1		—		1501.9
Acquisitions, dispositions, and other adjustments, net (1)	(0.1)		1.7		(0.3)		(0.1)		0.2		—		1.4
Impairment	—		—		(257.4)		(41.6)		(19.3)		—		(318.3)
Balance as of December 31, 2020
Goodwill	367.2		500.6		714.6		41.6		19.3		1,470.0		3,113.3
Accumulated impairment losses	(140.0)		—		(257.4)		(41.6)		(19.3)		(1,470.0)		(1,928.3)
	227.2		500.6		457.2		—		—		—		1,185.0
Acquisitions, dispositions, and other adjustments, net (1)	1.5		17.3		26.9		4.6		—		—		50.3
Balance as of December 31, 2021
Goodwill	368.7		517.9		741.5		46.2		19.3		1,470.0		3,163.6
Accumulated impairment losses	(140.0)		—		(257.4)		(41.6)		(19.3)		(1,470.0)		(1,928.3)
	$	228.7	$	517.9	$	484.1	$	4.6	$	—	$	—	$	1,235.3

(1)    Includes amounts reclassified to held for sale and related adjustments, which are presented in Other Current Assets in our Consolidated Balance Sheet as of period end.

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Leases (Tables)

12 Months Ended

Dec. 31, 2021

Leases [Abstract]

Lease Assets and Lease Liabilities

Leases	Classification	2021		2020
Assets
Operating	Operating Lease Assets	$	284.0	$	309.5
Finance	Property and Equipment, Net and Other Assets	312.3		102.9
Total right-of-use assets		$	596.3	$	412.4
Liabilities
Current
Operating	Other Current Liabilities	$	37.8	$	38.4
Finance	Current Maturities of Long-Term Debt and Vehicle Floorplan Payable - Trade	27.0		27.2
Noncurrent
Operating	Noncurrent Operating Lease Liabilities	260.1		286.5
Finance	Long-Term Debt, Net of Current Maturities	318.6		107.1
Total lease liabilities		$	643.5	$	459.2

Lease Term and Discount Rate	2021		2020
Weighted average remaining lease term
Operating	12 years		12 years
Finance	17 years		14 years
Weighted-average discount rate
Operating	5.09	%	5.17	%
Finance	4.15	%	6.46	%

Net Lease Cost

Lease cost	Classification	2021		2020
Operating lease cost	Selling, general, and administrative expenses	$	54.8	$	58.3
Finance lease cost:
Amortization of ROU assets	Depreciation and amortization	12.5		9.8
Interest on lease liabilities	Other interest expense and floorplan interest expense	8.0		6.9
Short-term lease cost (1)	Selling, general, and administrative expenses	8.8		7.3
Variable lease cost	Selling, general, and administrative expenses	10.6		7.7
Sublease income	Selling, general, and administrative expenses	(0.9)		(0.5)
Net lease cost		$	93.8	$	89.5
(1) Includes leases with a term of one month or less.

Cash Flow Information, Lessee

Other Information	2021		2020
Cash paid for amounts included in the measurement of lease liabilities
Operating cash flows from operating leases	$	55.3	$	57.0
Operating cash flows from finance leases (1)	$	38.1	$	38.5
Financing cash flows from finance leases	$	8.5	$	15.0
Supplemental noncash information on adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new:
Operating lease liabilities	$	13.5	$	16.8
Finance lease liabilities	$	249.4	$	57.6
(1) Includes the interest component of payments made on finance leases as well as principal payments on vehicle floorplan payables with trade lenders for certain service loaner vehicle leases.

Maturity of Lease Liabilities

Maturity of Lease Liabilities	Operating Leases		Finance Leases
Year ending December 31,
2022	$	51.7	$	39.3
2023	43.9		23.6
2024	37.6		23.7
2025	35.4		24.0
2026	31.5		24.3
Thereafter	206.3		333.0
Total lease payments	406.4		467.9
Less: interest	(108.5)		(122.3)
Present value of lease liabilities	$	297.9	$	345.6

Maturity of Lease Liabilities

Maturity of Lease Liabilities	Operating Leases		Finance Leases
Year ending December 31,
2022	$	51.7	$	39.3
2023	43.9		23.6
2024	37.6		23.7
2025	35.4		24.0
2026	31.5		24.3
Thereafter	206.3		333.0
Total lease payments	406.4		467.9
Less: interest	(108.5)		(122.3)
Present value of lease liabilities	$	297.9	$	345.6

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Long-Term Debt and Commercial Paper (Tables)

12 Months Ended

Dec. 31, 2021

Debt Disclosure [Abstract]

Long-term debt

Long-term debt at December 31 consisted of the following:

Debt Description	Maturity Date	Interest Payable	2021		2020
3.35% Senior Notes	January 15, 2021	January 15 and July 15	$	—	$	300.0
3.5% Senior Notes	November 15, 2024	May 15 and November 15	450.0		450.0
4.5% Senior Notes	October 1, 2025	April 1 and October 1	450.0		450.0
3.8% Senior Notes	November 15, 2027	May 15 and November 15	300.0		300.0
1.95% Senior Notes	August 1, 2028	February 1 and August 1	400.0		—
4.75% Senior Notes	June 1, 2030	June 1 and December 1	500.0		500.0
2.4% Senior Notes	August 1, 2031	February 1 and August 1	450.0		—
Revolving credit facility	March 26, 2025	Monthly	—		—
Finance leases and other debt	Various dates through 2041		330.6		116.6
			2,880.6		2,116.6
Less: unamortized debt discounts and debt issuance costs			(22.2)		(14.8)
Less: current maturities			(12.2)		(309.2)
Long-term debt, net of current maturities			$	2,846.2	$	1,792.6

Aggregate maturities of non-vehicle long-term debt

At December 31, 2021, aggregate maturities of non-vehicle long-term debt were as follows:

Year Ending December 31:
2022	$	12.2
2023	11.9
2024	462.3
2025	463.2
2026	14.1
Thereafter	1,916.9
	$	2,880.6

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Chargeback Liability (Tables)

12 Months Ended

Dec. 31, 2021

SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract]

Rollforward of Estimated Chargeback Liability

The following is a rollforward of our estimated chargeback liability for each of the three years presented in our Consolidated Financial Statements:

	2021		2020		2019
Balance - January 1	$	142.1	$	134.5	$	128.1
Add: Provisions	168.9		118.1		108.6
Deduct: Chargebacks	(140.0)		(110.5)		(102.2)
Balance - December 31	$	171.0	$	142.1	$	134.5

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Self-Insurance (Tables)

12 Months Ended

Dec. 31, 2021

Insurance [Abstract]

Current and long-term self-insurance liabilities

At December 31, 2021 and 2020, current and long-term self-insurance liabilities were included in Other Current Liabilities and Other Liabilities, respectively, in the Consolidated Balance Sheets as follows:

	2021		2020
Self-insurance - current portion	$	44.6	$	35.4
Self-insurance - long-term portion	51.2		47.0
Total self-insurance liabilities	$	95.8	$	82.4

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Income Taxes (Tables)

12 Months Ended

Dec. 31, 2021

Income Tax Disclosure [Abstract]

Components of Income Tax Provision From Continuing Operations

The components of the income tax provision from continuing operations for the years ended December 31 are as follows:

	2021		2020		2019
Current:
Federal	$	374.2	$	168.9	$	86.0
State	78.5		37.4		29.4
Federal and state deferred	(17.2)		(39.0)		45.8
Change in valuation allowance, net	(0.2)		0.3		0.2
Adjustments and settlements	(0.2)		0.7		0.4
Income tax provision	$	435.1	$	168.3	$	161.8

Reconciliation of Income Tax Provision

A reconciliation of the income tax provision calculated using the statutory federal income tax rate to our income tax provision from continuing operations for the years ended December 31 is as follows:

	2021		%	2020		%	2019		%
Income tax provision at statutory rate	$	379.8	21.0	$	115.5	21.0	$	128.7	21.0
Impact of goodwill impairment	—		—	21.4		3.9	—		—
Other non-deductible expenses, net	(1.2)		(0.1)	8.2		1.5	10.3		1.7
State income taxes, net of federal benefit	60.7		3.4	24.3		4.4	25.7		4.2
	439.3		24.3	169.4		30.8	164.7		26.9
Change in valuation allowance, net	(0.2)		—	0.3		0.1	0.2		—
Adjustments and settlements	(0.2)		—	0.7		0.1	0.4		0.1
Federal and state tax credits	(1.0)		—	(0.7)		(0.1)	(0.9)		(0.2)
Other, net	(2.8)		(0.2)	(1.4)		(0.3)	(2.6)		(0.4)
Income tax provision	$	435.1	24.1	$	168.3	30.6	$	161.8	26.4

Deferred Income Tax Asset and Liability Components

Deferred income tax asset and liability components at December 31 are as follows:

	2021		2020
Deferred income tax assets:
Inventory	$	20.8	$	20.2
Receivable allowances	1.2		1.0
Warranty, chargeback, and self-insurance liabilities	61.9		53.1
Other accrued liabilities	31.5		31.5
Deferred compensation	28.7		24.4
Stock-based compensation	7.0		10.6
Lease liabilities	142.2		80.8
Loss carryforwards— state	6.2		6.8
Other, net	5.3		4.6
Total deferred income tax assets	304.8		233.0
Valuation allowance	(4.6)		(4.8)
Deferred income tax assets, net of valuation allowance	300.2		228.2
Deferred income tax liabilities:
Long-lived assets (intangible assets and property)	(237.9)		(219.6)
Investments - unrealized appreciation	(0.9)		(19.5)
Right-of-use assets	(131.4)		(75.0)
Other, net	(8.2)		(10.0)
Total deferred income tax liabilities	(378.4)		(324.1)
Net deferred income tax liabilities	$	(78.2)	$	(95.9)

Schedule of Unrecognized Tax Benefits Roll Forward

A reconciliation of the beginning and ending amount of unrecognized tax benefits is as follows:

	2021		2020		2019
Balance at January 1	$	7.0	$	5.3	$	4.3
Additions based on tax positions related to the current year	—		0.4		—
Additions for tax positions of prior years	0.8		1.6		1.4
Reductions for tax positions of prior years	—		—		—
Reductions for expirations of statute of limitations	(0.9)		(0.3)		(0.4)
Settlements	—		—		—
Balance at December 31	$	6.9	$	7.0	$	5.3

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Shareholders' Equity (Tables)

12 Months Ended

Dec. 31, 2021

Stockholders' Equity Note [Abstract]

Shares Repurchased Under Share Repurchase Program

A summary of shares repurchased under our stock repurchase program authorized by our Board of Directors follows:

	2021		2020		2019
Shares repurchased	22.3		7.2		1.3
Aggregate purchase price	$	2,303.2	$	382.3	$	44.7
Average purchase price per share	$	103.18	$	52.76	$	35.51

Common Stock Issued With The Exercise of Stock Options

A summary of shares of common stock issued in connection with the exercise of stock options follows:

	2021		2020		2019
Shares issued	1.0		1.1		0.4
Proceeds from the exercise of stock options	$	54.5	$	52.7	$	12.7
Average exercise price per share	$	53.13	$	49.91	$	33.87

Shares Issued and Shares Surrendered to Satisfy Tax Withholdings in Connection With Restricted Stock and Restricted Stock Units

The following table presents a summary of shares of common stock issued in connection with the settlement of RSUs, as well as shares surrendered to AutoNation to satisfy tax withholding obligations in connection with the vesting of restricted stock and settlement of RSUs:

	2021	2020	2019
Shares issued	0.7	0.5	0.3
Shares surrendered to AutoNation to satisfy tax withholding obligations	0.2	0.2	0.1

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Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2021

Share-based Payment Arrangement [Abstract]

Restricted Stock Unit Activity

The following table summarizes information about vested and nonvested RSUs for 2021:

	RSUs
	Shares (in actual number of shares)	Weighted-Average Grant Date Fair Value
Nonvested at January 1	1,868,440	$	41.36
Granted	536,645	$	85.45
Vested	(671,926)	$	43.75
Forfeited	(76,713)	$	45.92
Nonvested at December 31	1,656,446	$	54.31

Weighted Average Grant-Date Fair Value of Restricted Stock Units Granted and Total Fair Value of Restricted Stock Units Vested

The weighted average grant-date fair value of RSUs and total fair value of RSUs vested are summarized in the following table:

	2021		2020		2019
Weighted average grant-date fair value of RSUs granted	$	85.45	$	44.28	$	35.51
Total fair value of RSUs vested (in millions)	$	51.8	$	23.2	$	9.0

Stock Option Activity

The following table summarizes stock option activity during 2021:

	Stock Options
	Shares (in actual number of shares)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (in millions)
Options outstanding at January 1	1,155,693	$	52.78
Granted	—	$	—
Exercised	(1,025,673)	$	53.13
Forfeited	—	$	—
Expired	—	$	—
Options outstanding and exercisable as of December 31	130,020	$	50.01	1.97	$	8.7
Options available for future grants at December 31	2,667,548

Total Stock-Based Compensation Expense

The following table summarizes the total stock-based compensation expense recognized in Selling, General, and Administrative Expenses in the Consolidated Statements of Income and the total recognized tax benefit related thereto:

	2021		2020		2019
RSUs	$	35.0	$	30.0	$	29.4
Stock options	—		0.1		0.9
Restricted stock	—		0.1		0.8
Total stock-based compensation expense	$	35.0	$	30.2	$	31.1
Tax benefit related to stock-based compensation expense	$	2.4	$	2.6	$	2.5

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Acquisitions (Tables)

12 Months Ended

Dec. 31, 2021

Business Combination and Asset Acquisition [Abstract]

Estimated fair values of assets acquired and liabilities assumed

The following table summarizes the consideration paid and estimated fair values of the assets acquired and liabilities assumed at the acquisition dates for the stores acquired during 2021.

Inventory	$	46.6
Property and equipment	282.8
Goodwill	51.6
Franchise rights - indefinite-lived	232.4
Other assets	17.7
Vehicle floorplan payable - non-trade	(15.1)
Other liabilities	(2.8)
Aggregate purchase price	$	613.2
Finance lease obligations	(180.5)
Cash used in business acquisition, net of cash acquired	$	432.7

Pro forma revenue and net income from continuing operations

Our supplemental pro forma revenue and net income from continuing operations had the acquisition dates been January 1, 2020 are as follows:

	Years Ended December 31,
Unaudited supplemental pro forma:	2021		2020
Revenue	$	26,544.2	$	21,074.8
Net income from continuing operations	$	1,407.0	$	404.1

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Exit or Disposal Cost Obligations (Tables)

12 Months Ended

Dec. 31, 2020

Restructuring and Related Activities [Abstract]

Exit or Disposal Cost Obligations

In connection with the closing of the ACP business, we incurred total charges of $36.7 million in 2020 as follows:

Cost Associated with Exit Activity	Total Costs Incurred		Statement of Operations Line Item
Inventory valuation adjustment	$	17.6	Parts and service cost of sales
Contract termination charges	3.2		Other (income) expense, net (operating)
Other associated closing costs	2.6		Selling, general, and administrative expenses
Accelerated depreciation	3.9		Depreciation and amortization
Accelerated amortization	3.2		Selling, general, and administrative expenses
Asset impairment charges	5.1		Other (income) expense, net (operating)
Involuntary termination benefits	1.1		Selling, general, and administrative expenses
	$	36.7

Charges incurred are reflected as part of the “Corporate and other” category of our segment information

Rollforward of liability balances for exit or disposal cost obligations

The following is a rollforward of our liability balances for exit or disposal cost obligations associated with the closing of the ACP business, which are included in Other Current Liabilities in the Consolidated Balance Sheets:

	Contract Termination Charges		Other Associated Closing Costs		Involuntary Termination Benefits		Total
Balance at December 31, 2020	$	0.2	$	2.4	$	0.8	$	3.4
Costs incurred	—		—		—		—
Costs paid or otherwise settled	(0.2)		(2.4)		(0.8)		(3.4)
Balance at December 31, 2021	$	—	$	—	$	—	$	—

-

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Cash Flow Information (Tables)

12 Months Ended

Dec. 31, 2021

Supplemental Cash Flow Information [Abstract]

Reconciliation of cash and cash equivalents

The following table provides a reconciliation of cash and cash equivalents reported on our Consolidated Balance Sheets to the total amounts, which include cash, cash equivalents, and restricted cash, reported on our Consolidated Statements of Cash Flows:

	Years Ended December 31,
	2021		2020
Cash and cash equivalents	$	60.4	$	569.6
Restricted cash included in Other Current Assets	0.2		0.1
Total cash, cash equivalents, and restricted cash	$	60.6	$	569.7

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Financial Instruments and Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

Fair Value Disclosures [Abstract]

Unrealized gains recognized on equity securities

The following is the portion of unrealized gains recognized during the years ended December 31, 2021 and 2020, related to equity securities still held at December 31:

	2021		2020
Net gains recognized during the period on equity securities	$	10.9	$	131.5
Less: Net gains recognized during the period on equity securities sold during the period	7.5		63.4
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date	$	3.4	$	68.1

Summary Of Carrying Values And Fair Values Of Fixed Rate Debt

A summary of the aggregate carrying values and fair values of our fixed rate long-term debt at December 31 is as follows:

	2021		2020
Carrying value	$	2,858.4	$	2,101.8
Fair value	$	3,017.8	$	2,341.1

Nonfinancial Assets Measured and Recorded At Fair Value On A Nonrecurring Basis

The following table presents assets measured and recorded at fair value on a nonrecurring basis during the years ended December 31, 2021 and 2020:

	2021				2020
Description	Fair Value Measurements Using Significant Unobservable Inputs (Level 3)		Gain/(Loss)		Fair Value Measurements Using Significant Unobservable Inputs (Level 3)		Gain/(Loss)
Goodwill	$	—	$	—	$	457.5	$	(318.3)
Franchise rights and other	$	—	$	—	$	26.2	$	(59.9)
Equity investment	$	53.4	$	3.4	$	—	$	—
Right-of-use assets	$	—	$	(0.1)	$	5.0	$	(3.1)
Long-lived assets held and used	$	10.4	$	(3.1)	$	1.8	$	(9.2)

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information about Level 3 Fair Value Measurements

Description	Fair Value at March 31, 2020		Valuation Technique	Unobservable Input	Range (Average)
Franchise rights	$	24.6	Discounted cash flow	Weighted average cost of capital	8.5	%
				Discount rate	11.1% - 14.3% (12.1%)
				Long-term revenue growth rate	2.0	%
				Long-term pretax income margin	0.6% - 2.8% (1.4%)
				Contributory asset charges	4.2% - 12.1% (6.2%)

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Segment Information (Tables)

12 Months Ended

Dec. 31, 2021

Segment Reporting [Abstract]

Reportable Segment Information

The following tables provide information on revenues from external customers, segment income of our reportable segments, floorplan interest expense, depreciation and amortization, total assets, and capital expenditures.

	Year Ended December 31, 2021
	Domestic		Import		Premium Luxury		Corporate and other		Total
Revenues from external customers	$	7,959.9	$	7,798.5	$	9,229.9	$	855.7	$	25,844.0
Floorplan interest expense	$	7.9	$	5.1	$	8.8	$	3.9	$	25.7
Depreciation and amortization	$	39.3	$	33.9	$	64.8	$	55.3	$	193.3
Segment income (loss)(1)	$	595.8	$	714.7	$	837.4	$	(270.8)	$	1,877.1
Capital expenditures	$	15.5	$	27.1	$	80.0	$	109.3	$	231.9
Segment assets	$	1,758.5	$	1,424.2	$	2,668.6	$	3,092.3	$	8,943.6

	Year Ended December 31, 2020
	Domestic		Import		Premium Luxury		Corporate and other		Total
Revenues from external customers	$	6,490.6	$	5,988.0	$	7,202.8	$	708.6	$	20,390.0
Floorplan interest expense	$	23.8	$	12.9	$	21.8	$	5.3	$	63.8
Depreciation and amortization	$	39.8	$	33.6	$	60.5	$	65.0	$	198.9
Segment income (loss)(1)	$	355.2	$	386.4	$	478.2	$	(720.4)	$	499.4
Capital expenditures	$	17.9	$	25.7	$	51.6	$	42.0	$	137.2
Segment assets	$	2,130.0	$	1,764.7	$	2,752.5	$	3,240.0	$	9,887.2

	Year Ended December 31, 2019
	Domestic		Import		Premium Luxury		Corporate and other		Total
Revenues from external customers	$	6,671.4	$	6,468.7	$	7,434.8	$	760.8	$	21,335.7
Floorplan interest expense	$	51.8	$	30.7	$	47.3	$	8.6	$	138.4
Depreciation and amortization	$	37.2	$	33.4	$	53.5	$	56.4	$	180.5
Segment income (loss)(1)	$	257.6	$	318.6	$	381.1	$	(272.1)	$	685.2
Capital expenditures	$	38.6	$	23.2	$	145.3	$	50.3	$	257.4
Segment assets	$	2,483.6	$	1,842.1	$	3,150.5	$	3,067.1	$	10,543.3
(1) Segment income represents income for each of our reportable segments and is defined as operating income less floorplan interest expense.

Reconciliation of Reportable Segment Revenue to Total Consolidated Revenue

The following is a reconciliation of the total of the reportable segments’ revenue and segment income to our consolidated revenue and income from continuing operations before income taxes, respectively.

	Years Ended December 31,
	2021		2020		2019
Total external revenues for reportable segments	$	24,988.3	$	19,681.4	$	20,574.9
Corporate and other revenues	855.7		708.6		760.8
Total consolidated revenues	$	25,844.0	$	20,390.0	$	21,335.7

Reconciliation of Reportable Segment Income to Income from Continuing Operations Before Income Taxes

	Years Ended December 31,
	2021		2020		2019
Total segment income for reportable segments	$	2,147.9	$	1,219.8	$	957.3
Corporate and other	(270.8)		(720.4)		(272.1)
Other interest expense	(93.0)		(93.7)		(106.7)
Other income, net	24.3		144.4		34.1
Income from continuing operations before income taxes	$	1,808.4	$	550.1	$	612.6

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Multiemployer Pension Plans (Tables)

12 Months Ended

Dec. 31, 2021

Multiemployer Plan, Pension, Significant [Abstract]

Multiemployer Plans

		Pension Protection Act Zone Status		Contributions of AutoNation ($ in millions) (1)							Expiration Date of Collective-Bargaining Agreement
Pension Fund	EIN/Pension PlanNumber	2021	2020	2021		2020		2019		Surcharge Imposed (2)
Automotive Industries Pension Plan	94-1133245 - 001	Red	Red	$	1.2	$	1.4	$	1.6	Yes	(3)
IAM National Pension Fund	51-6031295- 002	Red	Red	0.2		0.2		0.2		Yes	(4)
Other funds				0.1		0.1		0.1
Total contributions				$	1.5	$	1.7	$	1.9

(1)    Our stores were not listed in the Automotive Industries Pension Plan’s or IAM National Pension Fund’s Form 5500 as providing more than 5% of the total contributions for the plan years ended December 31, 2020 or 2019.

(2)    We paid surcharges to the Automotive Industries Pension Plan of $0.5 million, $0.6 million, and $0.8 million in 2021, 2020, and 2019 respectively. Surcharges to the IAM National Pension Fund were de minimis.

(3)    We are party to three collective-bargaining agreements that require contributions to the Automotive Industries Pension Plan. One agreement has an expiration date of December 31, 2022, and one agreement has an expiration date of May 31, 2024. One agreement expired on December 31, 2021, and is currently extended during collective bargaining for a new agreement.

(4)    We are party to two collective-bargaining agreements that require contributions to the IAM National Pension Fund. Both agreements have an expiration date of August 30, 2023.

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Description of Business and Summary of Significant Accounting Policies (Organization and Business, Inventory) (Details)	12 Months Ended
	Dec. 31, 2021 store brand franchises
Product Information [Line Items]
Owned and operated new vehicle franchises | franchises	339
Number of brands | brand	33
Percentage of new vehicle sales from core brands (percent)	90.00%
Dealerships [Member]
Product Information [Line Items]
Number of stores	247
Collision Center [Member]
Product Information [Line Items]
Number of stores	57
AutoNation USA Stores [Member]
Product Information [Line Items]
Number of stores	9
Automotive Auction Operations [Member]
Product Information [Line Items]
Number of stores	4
Parts Distribution Centers [Member]
Product Information [Line Items]
Number of stores	3

XML

Description of Business and Summary of Significant Accounting Policies (Property and Equipment Net) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Reported Value Measurement [Member] | Continuing Operations [Member]
Property, Plant and Equipment [Line Items]
Assets held for sale in continuing operations	$ 53.3	$ 25.5
Reported Value Measurement [Member] | Discontinued Operations [Member]
Property, Plant and Equipment [Line Items]
Assets held for sale in discontinued operations	$ 1.1	$ 8.0
Buildings and improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful life	5 years
Buildings and improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful life	40 years
Furniture, fixtures, and equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful life	3 years
Furniture, fixtures, and equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Property and equipment estimated useful life	10 years

XML

Description of Business and Summary of Significant Accounting Policies (Goodwill and Other Intangible Assets) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets [Line Items]
Franchise agreements, minimal contractual terms (in years)			1 year
Goodwill impairment			$ 0	$ 318,300,000	$ 0
Franchise rights impairment			$ 0	57,500,000	9,600,000
Minimum [Member]
Goodwill and Intangible Assets [Line Items]
Other intangibles, useful life			3 years
Maximum [Member]
Goodwill and Intangible Assets [Line Items]
Other intangibles, useful life			30 years
Nonrecurring [Member]
Goodwill and Intangible Assets [Line Items]
Goodwill impairment		$ 318,300,000	$ 0	$ 318,300,000
Nonrecurring [Member] | Franchise Rights [Member]
Goodwill and Intangible Assets [Line Items]
Franchise rights impairment	$ 0	$ 57,500,000	$ 0		$ 9,600,000

XML

Description of Business and Summary of Significant Accounting Policies (Employee Savings Plans) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
401(k) plan employer matching contribution	$ 14.3	$ 4.5	$ 15.0
401(k) plan matching contribution graded vesting period	3 years
Deferred Compensation Arrangement with Individual, by Type of Compensation, Pension and Other Postretirement Benefits [Member]
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items]
Matching contributions to employee participants		1.5	$ 1.4
Deferred compensation arrangement with individual matching contribution annual vesting portion, year one	33.00%
Employer discretionary contributions vesting periods (in years)	3 years
Balances due to participants	$ 117.2	$ 99.8
Deferred compensation arrangement with individual matching contribution annual vesting years two and three	33.00%

XML

Description of Business and Summary of Significant Accounting Policies (Revenue Recognition, Advertising) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Advertising [Abstract]
Advertising expense, net	$ 170.3	$ 161.7	$ 187.8
Manufacturer advertising reimbursements	$ 51.4	$ 48.2	$ 59.8

XML

Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Disaggregation of Revenue [Line Items]
Revenues	$ 25,844.0	$ 20,390.0	$ 21,335.7
Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	23,072.9	17,900.4	18,604.7
Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	2,771.1	2,489.6	2,731.0
New Vehicle [Member]
Disaggregation of Revenue [Line Items]
Revenues	12,081.7	10,418.6	11,166.5
Used Vehicle [Member]
Disaggregation of Revenue [Line Items]
Revenues	8,638.8	5,601.3	5,466.5
Parts and Service [Member]
Disaggregation of Revenue [Line Items]
Revenues	3,706.6	3,257.4	3,572.1
Finance and Insurance, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,384.5	1,059.3	1,023.3
Product and Service, Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	32.4	53.4	107.3
AN Reportable Segment, Domestic [Member]
Disaggregation of Revenue [Line Items]
Revenues	7,959.9	6,490.6	6,671.4
AN Reportable Segment, Domestic [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	7,260.7	5,841.6	5,969.6
AN Reportable Segment, Domestic [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	699.2	649.0	701.8
AN Reportable Segment, Domestic [Member] | New Vehicle [Member]
Disaggregation of Revenue [Line Items]
Revenues	3,601.8	3,411.1	3,502.5
AN Reportable Segment, Domestic [Member] | Used Vehicle [Member]
Disaggregation of Revenue [Line Items]
Revenues	2,875.0	1,781.4	1,769.5
AN Reportable Segment, Domestic [Member] | Parts and Service [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,007.6	891.5	959.0
AN Reportable Segment, Domestic [Member] | Finance and Insurance, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	469.1	370.5	354.6
AN Reportable Segment, Domestic [Member] | Product and Service, Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	6.4	36.1	85.8
AN Reportable Segment, Import [Member]
Disaggregation of Revenue [Line Items]
Revenues	7,798.5	5,988.0	6,468.7
AN Reportable Segment, Import [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	7,079.0	5,343.8	5,768.3
AN Reportable Segment, Import [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	719.5	644.2	700.4
AN Reportable Segment, Import [Member] | New Vehicle [Member]
Disaggregation of Revenue [Line Items]
Revenues	3,969.8	3,283.7	3,695.6
AN Reportable Segment, Import [Member] | Used Vehicle [Member]
Disaggregation of Revenue [Line Items]
Revenues	2,370.5	1,516.5	1,501.9
AN Reportable Segment, Import [Member] | Parts and Service [Member]
Disaggregation of Revenue [Line Items]
Revenues	950.0	811.3	889.7
AN Reportable Segment, Import [Member] | Finance and Insurance, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	489.6	361.7	368.3
AN Reportable Segment, Import [Member] | Product and Service, Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	18.6	14.8	13.2
AN Reportable Segment, Premium Luxury [Member]
Disaggregation of Revenue [Line Items]
Revenues	9,229.9	7,202.8	7,434.8
AN Reportable Segment, Premium Luxury [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	8,197.6	6,301.3	6,467.5
AN Reportable Segment, Premium Luxury [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,032.3	901.5	967.3
AN Reportable Segment, Premium Luxury [Member] | New Vehicle [Member]
Disaggregation of Revenue [Line Items]
Revenues	4,510.1	3,723.8	3,968.4
AN Reportable Segment, Premium Luxury [Member] | Used Vehicle [Member]
Disaggregation of Revenue [Line Items]
Revenues	3,067.4	2,125.9	2,045.6
AN Reportable Segment, Premium Luxury [Member] | Parts and Service [Member]
Disaggregation of Revenue [Line Items]
Revenues	1,246.7	1,058.1	1,136.0
AN Reportable Segment, Premium Luxury [Member] | Finance and Insurance, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	401.0	294.7	279.2
AN Reportable Segment, Premium Luxury [Member] | Product and Service, Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	4.7	0.3	5.6
Corporate and Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	855.7	708.6	760.8
Corporate and Other [Member] | Transferred at Point in Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	535.6	413.7	399.3
Corporate and Other [Member] | Transferred over Time [Member]
Disaggregation of Revenue [Line Items]
Revenues	320.1	294.9	361.5
Corporate and Other [Member] | New Vehicle [Member]
Disaggregation of Revenue [Line Items]
Revenues	0.0	0.0	0.0
Corporate and Other [Member] | Used Vehicle [Member]
Disaggregation of Revenue [Line Items]
Revenues	325.9	177.5	149.5
Corporate and Other [Member] | Parts and Service [Member]
Disaggregation of Revenue [Line Items]
Revenues	502.3	496.5	587.4
Corporate and Other [Member] | Finance and Insurance, Net [Member]
Disaggregation of Revenue [Line Items]
Revenues	24.8	32.4	21.2
Corporate and Other [Member] | Product and Service, Other [Member]
Disaggregation of Revenue [Line Items]
Revenues	$ 2.7	$ 2.2	$ 2.7

XML

Revenue Recognition Contract Assets and Liabilities (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Revenue Recognition [Abstract]
Receivables from contracts with customers, net	$ 539.9	$ 595.0	$ 662.0
Contract Asset (Current)	30.4	25.7	26.7
Contract Asset (Long-Term)	14.2	10.2	7.0
Contract Liability (Current)	33.6	32.5	32.6
Contract Liability (Long-Term)	60.5	56.0	57.7
Revenue amounts included in contract liability at the beginning of the period	32.1	31.0	35.1
Revenue for performance obligations satisfied in previous periods	19.4	19.0	$ 9.3
Contract assets reclassified to receivables	$ 25.0	$ 26.1
Vehicle Care Program, contract term	5 years

XML

Revenue Recognition Revenue Remaining Performance Obligation, Expected Timing of Satisfaction (Details) $ in Millions	Dec. 31, 2021 USD ($)
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue expected to be recognized on VCP contracts sold as of period end	$ 93.8
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	1 year
Revenue expected to be recognized on VCP contracts sold as of period end	$ 33.3
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	2 years
Revenue expected to be recognized on VCP contracts sold as of period end	$ 44.4
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2025-01-01
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items]
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Period	2 years
Revenue expected to be recognized on VCP contracts sold as of period end	$ 16.1

XML

Revenue Recognition Contract Costs (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Revenue Recognition [Abstract]
Capitalized contract cost, amortization term	5 years
Capitalized contract cost	$ 9.4	$ 9.0
Capitalized Contract Cost, Amortization	$ 3.8	$ 3.5

XML

Earnings Per Share (Basic and Diluted) (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Net income from continuing operations	$ 1,373.3	$ 381.8	$ 450.8
Loss from discontinued operations, net of income taxes	(0.3)	(0.2)	(0.8)
Net income	$ 1,373.0	$ 381.6	$ 450.0
Basic weighted average common shares outstanding (in shares)	74.2	88.3	90.1
Dilutive effect of stock options and unvested RSUs (in shares)	0.8	0.4	0.4
Diluted weighted average common shares outstanding (in shares)	75.0	88.7	90.5
Basic EPS amounts
Continuing operations (in dollars per share)	$ 18.51	$ 4.32	$ 5.00
Discontinued operations (in dollars per share)	0	0	(0.01)
Net income (in dollars per share)	18.50	4.32	4.99
Diluted EPS amounts:
Continuing operations (in dollars per share)	18.31	4.30	4.98
Discontinued operations (in dollars per share)	0	0	(0.01)
Net income (in dollars per share)	$ 18.31	$ 4.30	$ 4.97

XML

Earnings Per Share (Anti-Dilutive Equity Instruments Excluded from the Computation of Diluted Earnings Per Share) (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Earnings Per Share [Abstract]
Anti-dilutive equity instruments excluded from the computation of diluted earnings per share (in shares)	0.0	1.7	2.4

XML

Receivables, Net (Components Of Receivables, Net Of Allowances For Expected Credit Losses) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Contracts-in-transit and vehicle receivables	$ 347.4	$ 445.8
Trade receivables	162.6	138.0
Manufacturer receivables	148.4	210.0
Other	77.0	55.1
Receivables, gross	735.4	848.9
Less: allowances for expected credit losses	(5.4)	(3.7)
Receivables, net	$ 730.0	$ 845.2

XML

Inventory and Vehicle Floorplan Payable (Components of Inventory) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Inventory [Line Items]
Inventory	$ 1,847.9	$ 2,598.5
New Vehicle [Member]
Inventory [Line Items]
Inventory	515.1	1,761.9
Used Vehicle [Member]
Inventory [Line Items]
Inventory	1,109.3	648.4
Parts and Service [Member]
Inventory [Line Items]
Inventory	$ 223.5	$ 188.2

XML

Inventory and Vehicle Floorplan Payable (Components of Vehicle Floorplan Payable) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Floorplan Payable [Line Items]
Vehicle floorplan payable	$ 1,457.6	$ 2,759.9
Trade [Member]
Floorplan Payable [Line Items]
Vehicle floorplan payable	489.9	1,541.7
Non-Trade [Member]
Floorplan Payable [Line Items]
Vehicle floorplan payable	$ 967.7	$ 1,218.2

XML

Inventory and Vehicle Floorplan Payable (Narrative) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Floorplan Payable [Line Items]
Vehicle floorplan facilities, amount outstanding	$ 1,457.6	$ 2,759.9
Used vehicle floorplan facilities, remaining borrowing capacity	10.6
Used vehicle floorplan facilities, current borrowing capacity	$ 0.1
New Vehicle Floorplan Facilities [Member]
Floorplan Payable [Line Items]
Vehicle floorplan facilities, weighted average interest rates on amounts outstanding	1.60%	1.60%
Vehicle floorplan facilities, maximum borrowing capacity	$ 4,800.0
Vehicle floorplan facilities, amount outstanding	$ 900.0
Used Vehicle Floorplan Facilities [Member]
Floorplan Payable [Line Items]
Vehicle floorplan facilities, weighted average interest rates on amounts outstanding	1.80%	1.80%
Vehicle floorplan facilities, maximum borrowing capacity	$ 592.0
Vehicle floorplan facilities, amount outstanding	$ 581.4

XML

Property and Equipment, Net (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 5,200.7	$ 4,791.0
Less: accumulated depreciation and amortization	(1,781.2)	(1,652.9)
Property and equipment, net	3,419.5	3,138.1
Interest costs capitalized	0.8	0.6	$ 1.3
Land [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	1,471.8	1,417.4
Buildings and improvements [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	2,466.0	2,333.3
Furniture, fixtures, and equipment [Member]
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 1,262.9	$ 1,040.3

XML

Goodwill and Intangible Assets, Net (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill	$ 1,235.3	$ 1,185.0	$ 1,501.9
Franchise rights - indefinite-lived	727.5	509.0
Other intangible assets	24.0	19.6
Intangible assets, gross	751.5	528.6
Less: accumulated amortization	(8.0)	(7.1)
Intangible assets, net	$ 743.5	$ 521.5

XML

Goodwill and Intangible Assets, Net (Goodwill) (Details) - USD ($)		12 Months Ended
		Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
Goodwill, gross, beginning balance		$ 3,113,300,000	$ 3,111,900,000
Goodwill, Impaired, Accumulated Impairment Loss		(1,928,300,000)	(1,610,000,000)
Goodwill, beginning balance		1,185,000,000	1,501,900,000
Acquisitions, dispositions, and other adjustments, net	[1]	50,300,000	1,400,000
Gain/(Loss) on goodwill impairment		0	(318,300,000)	$ 0
Goodwill, gross, ending balance		3,163,600,000	3,113,300,000	3,111,900,000
Goodwill, Impaired, Accumulated Impairment Loss		(1,928,300,000)	(1,928,300,000)	(1,610,000,000)
Goodwill, ending balance		1,235,300,000	1,185,000,000	1,501,900,000
Reporting Unit, Domestic [Member]
Goodwill [Roll Forward]
Goodwill, gross, beginning balance		367,200,000	367,300,000
Goodwill, Impaired, Accumulated Impairment Loss		(140,000,000.0)	(140,000,000.0)
Goodwill, beginning balance		227,200,000	227,300,000
Acquisitions, dispositions, and other adjustments, net	[1]	1,500,000	(100,000)
Gain/(Loss) on goodwill impairment			0
Goodwill, gross, ending balance		368,700,000	367,200,000	367,300,000
Goodwill, Impaired, Accumulated Impairment Loss		(140,000,000.0)	(140,000,000.0)	(140,000,000.0)
Goodwill, ending balance		228,700,000	227,200,000	227,300,000
Reporting Unit, Import [Member]
Goodwill [Roll Forward]
Goodwill, gross, beginning balance		500,600,000	498,900,000
Goodwill, Impaired, Accumulated Impairment Loss		0	0
Goodwill, beginning balance		500,600,000	498,900,000
Acquisitions, dispositions, and other adjustments, net	[1]	17,300,000	1,700,000
Gain/(Loss) on goodwill impairment			0
Goodwill, gross, ending balance		517,900,000	500,600,000	498,900,000
Goodwill, Impaired, Accumulated Impairment Loss		0	0	0
Goodwill, ending balance		517,900,000	500,600,000	498,900,000
Reporting Unit, Premium Luxury [Member]
Goodwill [Roll Forward]
Goodwill, gross, beginning balance		714,600,000	714,900,000
Goodwill, Impaired, Accumulated Impairment Loss		(257,400,000)	0
Goodwill, beginning balance		457,200,000	714,900,000
Acquisitions, dispositions, and other adjustments, net	[1]	26,900,000	(300,000)
Gain/(Loss) on goodwill impairment			(257,400,000)
Goodwill, gross, ending balance		741,500,000	714,600,000	714,900,000
Goodwill, Impaired, Accumulated Impairment Loss		(257,400,000)	(257,400,000)	0
Goodwill, ending balance		484,100,000	457,200,000	714,900,000
Reporting Unit, Collision Centers [Member]
Goodwill [Roll Forward]
Goodwill, gross, beginning balance		41,600,000	41,700,000
Goodwill, Impaired, Accumulated Impairment Loss		(41,600,000)	0
Goodwill, beginning balance		0	41,700,000
Acquisitions, dispositions, and other adjustments, net	[1]	4,600,000	(100,000)
Gain/(Loss) on goodwill impairment			(41,600,000)
Goodwill, gross, ending balance		46,200,000	41,600,000	41,700,000
Goodwill, Impaired, Accumulated Impairment Loss		(41,600,000)	(41,600,000)	0
Goodwill, ending balance		4,600,000	0	41,700,000
Reporting Unit, Parts Centers [Member]
Goodwill [Roll Forward]
Goodwill, gross, beginning balance		19,300,000	19,100,000
Goodwill, Impaired, Accumulated Impairment Loss		(19,300,000)	0
Goodwill, beginning balance		0	19,100,000
Acquisitions, dispositions, and other adjustments, net	[1]	0	200,000
Gain/(Loss) on goodwill impairment			(19,300,000)
Goodwill, gross, ending balance		19,300,000	19,300,000	19,100,000
Goodwill, Impaired, Accumulated Impairment Loss		(19,300,000)	(19,300,000)	0
Goodwill, ending balance		0	0	19,100,000
Single Reporting Unit (before change in reporting units)
Goodwill [Roll Forward]
Goodwill, gross, beginning balance		1,470,000,000	1,470,000,000
Goodwill, Impaired, Accumulated Impairment Loss		(1,470,000,000)	(1,470,000,000)
Goodwill, beginning balance		0	0
Acquisitions, dispositions, and other adjustments, net	[1]	0	0
Gain/(Loss) on goodwill impairment			0
Goodwill, gross, ending balance		1,470,000,000	1,470,000,000	1,470,000,000
Goodwill, Impaired, Accumulated Impairment Loss		(1,470,000,000)	(1,470,000,000)	(1,470,000,000)
Goodwill, ending balance		$ 0	$ 0	$ 0

[1] Includes amounts reclassified to held for sale and related adjustments, which are presented in Other Current Assets in our Consolidated Balance Sheet as of period end.

XML

Goodwill and Intangible Assets, Net (Intangible Assets) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Indefinite-lived Intangible Assets by Segment [Line Items]
Franchise rights - indefinite-lived	$ 727.5	$ 509.0
AN Reportable Segment, Domestic [Member]
Indefinite-lived Intangible Assets by Segment [Line Items]
Franchise rights - indefinite-lived	137.7
AN Reportable Segment, Import [Member]
Indefinite-lived Intangible Assets by Segment [Line Items]
Franchise rights - indefinite-lived	143.8
AN Reportable Segment, Premium Luxury [Member]
Indefinite-lived Intangible Assets by Segment [Line Items]
Franchise rights - indefinite-lived	$ 446.0

XML

Leases (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Assets and Liabilities, Lessee [Abstract]
Operating Lease Assets	$ 284.0	$ 309.5
Finance Lease Assets	312.3	102.9
Total right-of-use Assets	596.3	412.4
Current Operating Lease Liabilities	37.8	38.4
Current Finance Lease Liabilities	27.0	27.2
Noncurrent Operating Lease Liabilities	260.1	286.5
Noncurrent Finance Lease Liabilities	318.6	107.1
Total lease liabilities	$ 643.5	$ 459.2
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	PROPERTY AND EQUIPMENT, NET	PROPERTY AND EQUIPMENT, NET
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration]	Other current liabilities	Other current liabilities
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List]	Current maturities of long-term debt	Current maturities of long-term debt
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Long-term debt, net of current maturities	Long-term debt, net of current maturities
Lease Cost [Abstract]
Weighted average remaining lease term, Operating leases	12 years	12 years
Weighted average remaining lease term, Finance leases	17 years	14 years
Weighted average discount rate, Operating leases (percent)	5.09%	5.17%
Weighted average discount rate, finance leases (percent)	4.15%	6.46%
Operating lease cost	$ 54.8	$ 58.3
Finance lease cost, Amortization of ROU assets	12.5	9.8
Finance lease cost, Interest on lease liabilities	8.0	6.9
Short-term lease cost	8.8	7.3
Variable lease cost	10.6	7.7
Sublease Income	(0.9)	(0.5)
Net lease cost	93.8	89.5
Cash Flow Activities, Lessee [Abstract]
Operating cash flows from operating leases	55.3	57.0
Operating cash flows from finance leases	38.1	38.5
Payment of other debt obligations	8.5	15.0
Adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new operating lease liabilities	13.5	16.8
Adjustments to right-of-use assets, including right-of-use assets obtained in exchange for new finance lease liabilities	249.4	$ 57.6
Maturity of Lease Liabilities [Abstract]
Maturity of Operating Lease Liabilities, Twelve months ended December 31, 2022	51.7
Maturity of Operating Lease Liabilities, Twelve months ended December 31, 2023	43.9
Maturity of Operating Lease Liabilities, Twelve months ended December 31, 2024	37.6
Maturity of Operating Lease Liabilities, Twelve months ended December 31, 2025	35.4
Maturity of Operating Lease Liabilities, Twelve months ended December 31, 2026	31.5
Maturity of Operating Lease Liabilities, Thereafter	206.3
Total Operating Lease Payments	406.4
Less: interest (Operating leases)	(108.5)
Present Value of Operating lease liabilities	297.9
Maturity of Finance Lease Liabilities, Twelve months ended December 31, 2022	39.3
Maturity of Finance Lease Liabilities, Twelve months ended December 31, 2023	23.6
Maturity of Finance Lease Liabilities, Twelve months ended December 31, 2024	23.7
Maturity of Finance Lease Liabilities, Twelve months ended December 31, 2025	24.0
Maturity of Finance Lease Liabilities, Twelve months ended December 31, 2026	24.3
Maturity of Finance Lease Liabilities, Thereafter	333.0
Total Finance Lease Payments	467.9
Less: interest (Finance leases)	(122.3)
Present value of Finance lease liabilities	$ 345.6
Minimum [Member]
Lessee, General Description [Abstract]
Lease Renewal Terms	1 year
Maximum [Member]
Lessee, General Description [Abstract]
Lease Renewal Terms	5 years
Land and Building [Member] | Minimum [Member]
Lessee, General Description [Abstract]
Lease Terms	1 year
Land and Building [Member] | Maximum [Member]
Lessee, General Description [Abstract]
Lease Terms	25 years
Equipment [Member] | Minimum [Member]
Lessee, General Description [Abstract]
Lease Terms	1 year
Equipment [Member] | Maximum [Member]
Lessee, General Description [Abstract]
Lease Terms	5 years
Vehicles [Member] | Minimum [Member]
Lessee, General Description [Abstract]
Service loaner vehicle leases, lease terms	6 months
Vehicles [Member] | Maximum [Member]
Lessee, General Description [Abstract]
Service loaner vehicle leases, lease terms	18 months

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Long-Term Debt and Commercial Paper (Long-Term Debt) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Jul. 29, 2021	Dec. 31, 2020
Debt Instruments [Abstract]
Long-term debt	$ 2,880.6		$ 2,116.6
Less: unamortized debt discounts and debt issuance costs	(22.2)		(14.8)
Less: current maturities	(12.2)		(309.2)
Long-term debt, net of current maturities	$ 2,846.2		$ 1,792.6
Senior Notes at Three Point Three Five Percent Due 2021 | Senior Notes [Member]
Debt Instruments [Abstract]
Percentage interest on debt instrument	3.35%		3.35%
Debt instrument, maturity date	Jan. 15, 2021
Senior notes	$ 0.0		$ 300.0
Senior Notes at Three Point Five Percent Due 2024 [Member] | Senior Notes [Member]
Debt Instruments [Abstract]
Percentage interest on debt instrument	3.50%
Debt instrument, maturity date	Nov. 15, 2024
Senior notes	$ 450.0		450.0
Senior Notes at Four Point Five Percent Due 2025 [Member] | Senior Notes [Member]
Debt Instruments [Abstract]
Percentage interest on debt instrument	4.50%
Debt instrument, maturity date	Oct. 01, 2025
Senior notes	$ 450.0		450.0
Senior Notes at Three Point Eight Percent Due 2027 [Member] | Senior Notes [Member]
Debt Instruments [Abstract]
Percentage interest on debt instrument	3.80%
Debt instrument, maturity date	Nov. 15, 2027
Senior notes	$ 300.0		300.0
Senior Notes at One Point Nine Five Percent Due 2028 | Senior Notes [Member]
Debt Instruments [Abstract]
Percentage interest on debt instrument	0.0195%
Debt instrument, maturity date	Aug. 01, 2028
Senior notes	$ 400.0	$ 400.0	0.0
Senior Notes at Four Point Seven Five Percent Due 2030 | Senior Notes [Member]
Debt Instruments [Abstract]
Percentage interest on debt instrument	4.75%
Debt instrument, maturity date	Jun. 01, 2030
Senior notes	$ 500.0		500.0
Senior Notes at Two Point Four Percent Due 2031 | Senior Notes [Member]
Debt Instruments [Abstract]
Percentage interest on debt instrument	2.40%
Debt instrument, maturity date	Aug. 01, 2031
Senior notes	$ 450.0	$ 450.0	0.0
Revolving Credit Facility Due 2025 [Member]
Debt Instruments [Abstract]
Revolving credit facility	$ 0.0		0.0
Revolving Credit Facility Due 2025 [Member] | Line of Credit [Member]
Debt Instruments [Abstract]
Debt instrument, maturity date	Mar. 26, 2025
Other Debt [Member]
Debt Instruments [Abstract]
Other debt	$ 330.6		$ 116.6

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Long-Term Debt and Commercial Paper (Maturities of Long-Term Debt) (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Maturities of Long-term Debt [Abstract]
2022	$ 12.2
2023	11.9
2024	462.3
2025	463.2
2026	14.1
Thereafter	1,916.9
Long-term debt	$ 2,880.6	$ 2,116.6

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Long-Term Debt and Commercial Paper (Senior Unsecured Notes and Credit Agreement) (Details) - USD ($) $ in Millions	1 Months Ended	12 Months Ended
	Jan. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jul. 29, 2021
Debt Instrument [Line Items]
Letters of credit, amount outstanding		$ 39.7
Senior Notes at Three Point Three Five Percent Due 2021
Debt Instrument [Line Items]
Repayment of senior notes		300.0	$ 0.0	$ 0.0
Revolving Credit Facility Due 2025 [Member]
Debt Instrument [Line Items]
Maximum borrowing capacity under revolving credit facility		1,800.0
Additional borrowing capacity under accordion feature of revolving credit facility		500.0
Revolving credit facilities letter of credit sublimit		200.0
Additional borrowing capacity under revolving credit facility		$ 1,800.0
Leverage ratio, minimum threshold, current credit spread		2.0
Leverage ratio, maximum threshold, current credit spread		3.25
Leverage ratio, minimum threshold, increase in credit spread		3.25
Impact on credit spread from increase in leverage ratio		0.125%
Senior Notes [Member] | Senior Notes at Three Point Three Five Percent Due 2021
Debt Instrument [Line Items]
Repayment of senior notes	$ 300.0
Senior notes		$ 0.0	$ 300.0
Percentage interest on debt instrument		3.35%	3.35%
Debt instrument, maturity date		Jan. 15, 2021
Senior Notes [Member] | Senior Notes at Three Point Five Percent Due 2024 [Member]
Debt Instrument [Line Items]
Senior notes		$ 450.0	$ 450.0
Percentage interest on debt instrument		3.50%
Debt instrument, maturity date		Nov. 15, 2024
Senior Notes [Member] | Senior Notes at Four Point Five Percent Due 2025 [Member]
Debt Instrument [Line Items]
Senior notes		$ 450.0	450.0
Percentage interest on debt instrument		4.50%
Debt instrument, maturity date		Oct. 01, 2025
Senior Notes [Member] | Senior Notes at Three Point Eight Percent Due 2027 [Member]
Debt Instrument [Line Items]
Senior notes		$ 300.0	300.0
Percentage interest on debt instrument		3.80%
Debt instrument, maturity date		Nov. 15, 2027
Senior Notes [Member] | Senior Notes at One Point Nine Five Percent Due 2028
Debt Instrument [Line Items]
Senior notes		$ 400.0	0.0		$ 400.0
Percentage interest on debt instrument		0.0195%
Senior notes, aggregate offering price percentage					99.805%
Debt instrument, maturity date		Aug. 01, 2028
Senior Notes [Member] | Senior Notes at Four Point Seven Five Percent Due 2030
Debt Instrument [Line Items]
Senior notes		$ 500.0	500.0
Percentage interest on debt instrument		4.75%
Debt instrument, maturity date		Jun. 01, 2030
Senior Notes [Member] | Senior Notes at Two Point Four Percent Due 2031
Debt Instrument [Line Items]
Senior notes		$ 450.0	$ 0.0		$ 450.0
Percentage interest on debt instrument		2.40%
Senior notes, aggregate offering price percentage					99.735%
Debt instrument, maturity date		Aug. 01, 2031
Line of Credit [Member] | Revolving Credit Facility Due 2025 [Member]
Debt Instrument [Line Items]
Debt instrument, maturity date		Mar. 26, 2025
Minimum [Member] | Revolving Credit Facility Due 2025 [Member]
Debt Instrument [Line Items]
Commitment fee on undrawn amounts (percent)		0.125%
Maximum [Member] | Revolving Credit Facility Due 2025 [Member]
Debt Instrument [Line Items]
Commitment fee on undrawn amounts (percent)		0.20%
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2025 [Member]
Debt Instrument [Line Items]
Basis spread on variable interest rates (percent)		1.125%
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2025 [Member]
Debt Instrument [Line Items]
Basis spread on variable interest rates (percent)		1.50%
Base Rate [Member] | Minimum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2025 [Member]
Debt Instrument [Line Items]
Basis spread on variable interest rates (percent)		0.125%
Base Rate [Member] | Maximum [Member] | Line of Credit [Member] | Revolving Credit Facility Due 2025 [Member]
Debt Instrument [Line Items]
Basis spread on variable interest rates (percent)		0.50%

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Long-Term Debt and Commercial Paper (Other Long-Term Debt and Commercial Paper) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Commercial paper, maximum aggregate amount outstanding permitted	$ 1,000.0
Commercial paper, amount outstanding	340.0	$ 0.0
Other Debt [Member]
Debt Instrument [Line Items]
Finance Leases Included In Long-term Debt	$ 330.6	$ 116.6
Commercial Paper [Member]
Debt Instrument [Line Items]
Weighted-average annual interest rate	0.47%
Weighted Average [Member] | Commercial Paper [Member]
Debt Instrument [Line Items]
Maturity period of debt	10 days
Maximum [Member] | Commercial Paper [Member]
Debt Instrument [Line Items]
Maturity period of debt	397 days

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Chargeback Liability (Details) - Chargeback Reserves [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
SEC Schedule, 12-09, Movement in Valuation Allowances and Reserves [Roll Forward]
Chargeback liabilities, beginning balance	$ 142.1	$ 134.5	$ 128.1
Add: Provisions	168.9	118.1	108.6
Deduct: Chargebacks	(140.0)	(110.5)	(102.2)
Chargeback liabilities, ending balance	$ 171.0	$ 142.1	$ 134.5

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Self-Insurance (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Insurance [Line Items]
Self-insurance reserves - current portion	$ 574.2	$ 535.8
Self-insurance reserves - long-term portion	322.3	310.6
Self-insurance reserves [Member]
Insurance [Line Items]
Self-insurance reserves - current portion	44.6	35.4
Self-insurance reserves - long-term portion	51.2	47.0
Total self-insurance liabilities	$ 95.8	$ 82.4

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Income Taxes Components of Income Tax Provision From Continuing Operations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current:
Federal	$ 374.2	$ 168.9	$ 86.0
State	78.5	37.4	29.4
Federal and state deferred	(17.2)	(39.0)	45.8
Change in valuation allowance, net	(0.2)	0.3	0.2
Adjustments and settlements	(0.2)	0.7	0.4
Income tax provision	$ 435.1	$ 168.3	$ 161.8

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Reconciliation of Income Tax Provision (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Effective Income Tax Rate Reconciliation, Amount [Abstract]
Income tax provision at statutory rate	$ 379.8	$ 115.5	$ 128.7
Impact of goodwill impairment	0.0	21.4	0.0
Other non-deductible expenses, net	(1.2)	8.2	10.3
State income taxes, net of federal benefit	60.7	24.3	25.7
Income tax provision, excluding other reconciling items	439.3	169.4	164.7
Change in valuation allowance, net	(0.2)	0.3	0.2
Adjustments and settlements	(0.2)	0.7	0.4
Federal and state tax credits	(1.0)	(0.7)	(0.9)
Other, net	(2.8)	(1.4)	(2.6)
Income tax provision	$ 435.1	$ 168.3	$ 161.8
Effective Income Tax Rate Reconciliation, Percent [Abstract]
Income tax provision at statutory rate, %	21.00%	21.00%	21.00%
Impact of goodwill impairment, %	0.00%	3.90%	0.00%
Other non-deductible expenses, net, %	(0.10%)	1.50%	1.70%
State income taxes, net of federal benefit, %	3.40%	4.40%	4.20%
Income tax provision, excluding other reconciling items, %	24.30%	30.80%	26.90%
Change in valuation allowance, net, %	0.00%	0.10%	0.00%
Adjustments and settlements, %	0.00%	0.10%	0.10%
Federal and state tax credits, %	0.00%	(0.10%)	(0.20%)
Other, net, %	(0.20%)	(0.30%)	(0.40%)
Income tax provision, %	24.10%	30.60%	26.40%

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Income Taxes Deferred Income Tax Asset and Liability Components (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Deferred income tax assets:
Inventory	$ 20.8	$ 20.2
Receivable allowances	1.2	1.0
Warranty, chargeback, and self - insurance liabilities	61.9	53.1
Other accrued liabilities	31.5	31.5
Deferred compensation	28.7	24.4
Stock-based compensation	7.0	10.6
Lease liabilities	142.2	80.8
Loss carryforwards—state	6.2	6.8
Other, net	5.3	4.6
Total deferred income tax assets	304.8	233.0
Valuation allowance	(4.6)	(4.8)
Deferred income tax assets, net of valuation allowance	300.2	228.2
Deferred income tax liabilities:
Long-lived assets (intangible assets and property)	(237.9)	(219.6)
Investments - unrealized appreciation	(0.9)	(19.5)
Right-of-use assets	(131.4)	(75.0)
Other, net	(8.2)	(10.0)
Total deferred income tax liabilities	(378.4)	(324.1)
Net deferred income tax liabilities	$ (78.2)	$ (95.9)

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Income Taxes Deferred Income Tax Asset and Liability Components - Narrative (Details) - USD ($) $ in Millions	Dec. 31, 2021	Dec. 31, 2020
Valuation Allowance [Line Items]
Net deferred income tax liabilities	$ 78.2	$ 95.9
Accrued Income Taxes	6.9	13.3
Gross domestic state net operating loss carryforwards	94.3
State tax credits	1.6
Gross state net operating loss carryforwards and state tax credits, deferred tax asset	6.2
State net operating loss carryforwards, valuation allowance	4.6	$ 4.8
Deferred Tax Asset, Loss Carry Forwards
Valuation Allowance [Line Items]
State net operating loss carryforwards, valuation allowance	$ 4.6

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Unrecognized Tax Benefits and Tax Reform (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]
Balance at January 1	$ 7.0	$ 5.3	$ 4.3
Additions based on tax positions related to the current year	0.0	0.4	0.0
Additions for tax positions of prior years	0.8	1.6	1.4
Reductions for tax positions of prior years	0.0	0.0	0.0
Reductions for expirations of statute of limitations	(0.9)	(0.3)	(0.4)
Settlements	0.0	0.0	0.0
Balance at December 31	6.9	7.0	5.3
Unrecognized tax benefits, accumulated interest and penalties	9.1	8.4	7.5
Deferred tax assets related to unrecognized tax benefits	3.6	3.4	2.8
Net unrecognized tax benefits, associated interest, penalties and deferred tax asset that if resolved would impact effective tax rate	12.4	12.0	10.0
Recognized interest and penalties	$ 0.6	$ 0.7	$ 0.7

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Shareholders' Equity (Shares Repurchased Under Share Repurchase Program) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Class of Stock [Line Items]
Aggregate purchase price	$ 2,303.2	$ 382.3	$ 44.7
Common Stock [Member]
Class of Stock [Line Items]
Treasury stock cancellation, Shares	16,000,000
Stock Repurchase Program Board Authorized Repurchases [Member]
Class of Stock [Line Items]
Shares repurchased (in shares)	22,300,000	7,200,000	1,300,000
Aggregate purchase price	$ 2,303.2	$ 382.3	$ 44.7
Average purchase price per share (in dollars per share)	$ 103.18	$ 52.76	$ 35.51
Remaining amount available for share repurchase	$ 894.6

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Shareholders' Equity (Preferred Stock) (Details)	Dec. 31, 2021 $ / shares shares
Stockholders' Equity Note [Abstract]
Preferred Stock, Shares Authorized	5,000,000
Preferred Stock, Par or Stated Value Per Share | $ / shares	$ 0.01
Preferred stock, shares issued	0
Preferred stock, shares outstanding	0

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Shareholders' Equity (Common Stock Issued With The Exercise Of Stock Options (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Stockholders' Equity Note [Abstract]
Shares issued (in shares)	1.0	1.1	0.4
Proceeds from the exercise of stock options	$ 54.5	$ 52.7	$ 12.7
Average exercise price per share (in dollars per share)	$ 53.13	$ 49.91	$ 33.87

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Shareholders' Equity (Shares Issued And Shares Surrendered To Satisfy Tax Withholdings In Connection With Restricted Stock And Restricted Stock Units) (Details) - shares shares in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares issued (in shares)	0.7	0.5	0.3
Restricted Stock And Restricted Stock Units [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares surrendered to AutoNation to satisfy tax withholding obligations (in shares)	0.2	0.2	0.1

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Stock-Based Compensation (Details)	Dec. 31, 2021 shares
Employee [Member] | Employee Equity and Incentive Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	5,500,000
Director [Member] | Non-Employee Director Equity Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized	600,000

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Stock-Based Compensation (Restricted Stock Units) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Jan. 04, 2021
Restricted Stock Units (RSUs) [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Nonvested, shares, beginning balance	1,868,440
Nonvested, weighted-average grant date fair value, beginning balance (in dollars per share)	$ 41.36
Granted, shares	536,645
Granted, weighted-average grant date fair value (in dollars per share)	$ 85.45	$ 44.28	$ 35.51
Vested, shares	(671,926)
Vested, weighted-average grant date fair value (in dollars per share)	$ 43.75
Forfeited, shares	(76,713)
Forfeited, weighted-average grant date fair value (in dollars per share)	$ 45.92
Nonvested, shares, ending balance	1,656,446	1,868,440
Nonvested, weighted-average grant date fair value, ending balance (in dollars per share)	$ 54.31	$ 41.36
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Weighted average grant-date fair value of RSUs granted (in dollars per share)	$ 85.45	$ 44.28	$ 35.51
Total fair value of RSU's vested	$ 51.8	$ 23.2	$ 9.0
Director [Member] | Restricted Stock Units (RSUs) [Member] | Non-Employee Director Equity Plan 2014 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of restricted stock units granted to each non-employee director				3,671
Employee [Member] | Employee Equity and Incentive Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Measurement Period Performance-Based Restricted Stock Units	1 year
Employee [Member] | Restricted Stock Units (RSUs) [Member] | Employee Equity and Incentive Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Granted, shares	500,000
Employee [Member] | Time-based Restricted Stock Units [Member] | Employee Equity and Incentive Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Employee [Member] | Performance-based Restricted Stock Units Graded Vesting [Member] | Employee Equity and Incentive Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	4 years
Employee [Member] | Performance-based Restricted Stock Units Cliff Vesting [Member] | Employee Equity and Incentive Plan 2017 [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Vesting period (in years)	3 years
Measurement Period Additional Performance Metric Selected Performance-Based Restricted Stock Units	3 years

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Stock-Based Compensation (Stock Options) (Details) - USD ($) $ / shares in Units, $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Exercised, shares	(1,000,000.0)	(1,100,000)	(400,000)
Exercised, weighted-average exercise price (in dollars per share)	$ 53.13	$ 49.91	$ 33.87
Stock Options [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expiration period (in years)	10 years
Vesting period (in years)	4 years
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, beginning balance (in shares)	1,155,693
Options outstanding, weighted-average exercise price, beginning balance (in dollars per share)	$ 52.78
Granted, shares	0
Granted, weighted-average exercise price (in dollars per share)	$ 0
Exercised, shares	(1,025,673)
Exercised, weighted-average exercise price (in dollars per share)	$ 53.13
Forfeited, shares	0
Forfeited, weighted-average exercise price (in dollars per share)	$ 0
Expired, shares	0
Expired, weighted-average exercise price (in dollars per share)	$ 0
Options outstanding, ending balance (in shares)	130,020	1,155,693
Options outstanding, weighted-average exercise price, ending balance (in dollars per share)	$ 50.01	$ 52.78
Options outstanding, weighted-average remaining contractual term (years)	1 year 11 months 19 days
Options outstanding, aggregate intrinsic value	$ 8.7
Options available for future grants (in shares)	2,667,548
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Total intrinsic value of stock options exercised	$ 51.2	$ 9.8	$ 5.2

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Stock-Based Compensation (Restricted Stock) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2020	Dec. 31, 2019
Restricted Stock [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Total fair value of restricted stock awards vested	$ 0.7	$ 1.7

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Stock-Based Compensation (Compensation Expense) (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 35.0	$ 30.2	$ 31.1
Tax benefit related to stock-based compensation expense	2.4	2.6	2.5
Unrecognized compensation cost related to non-vested stock-based compensation arrangements	$ 30.7
Unrecognized compensation cost expected to be recognized over weighted average period (in years)	1 year 7 months 9 days
Tax benefits related to stock options exercised and vesting of restricted stock and RSUs	$ 17.2	4.3	3.3
Restricted Stock Units (RSUs) [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	35.0	30.0	29.4
Stock Options [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	0.0	0.1	0.9
Restricted Stock [Member]
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items]
Stock-based compensation	$ 0.0	$ 0.1	$ 0.8

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Acquisitions (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) store	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($) store
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	$ 1,235.3	$ 1,185.0	$ 1,501.9
Series of Individually Immaterial Business Acquisitions
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Inventory	46.6
Property and equipment	282.8
Goodwill	51.6
Franchise rights - indefinite-lived	232.4
Other assets	17.7
Vehicle floorplan payable - non-trade	(15.1)
Other liabilities	(2.8)
Aggregate purchase price	613.2
Finance lease obligations	(180.5)
Cash used in business acquisition, net of cash acquired	432.7
Business Acquisition, Pro Forma Information [Abstract]
Amount of revenue included in our Consolidated Statement of Income	176.9
Amount of earnings included in our Consolidated Statement of Income	6.9
Pro-forma revenue	26,544.2	21,074.8
Pro-forma net income from continuing operations	1,407.0	404.1
Reporting Unit, Domestic [Member]
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	228.7	227.2	227.3
Reporting Unit, Domestic [Member] | Series of Individually Immaterial Business Acquisitions
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	1.5
Reporting Unit, Import [Member]
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	517.9	500.6	498.9
Reporting Unit, Import [Member] | Series of Individually Immaterial Business Acquisitions
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	15.3
Reporting Unit, Premium Luxury [Member]
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	484.1	457.2	714.9
Reporting Unit, Premium Luxury [Member] | Series of Individually Immaterial Business Acquisitions
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	30.3
Reporting Unit, Collision Centers [Member]
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	4.6	$ 0.0	$ 41.7
Reporting Unit, Collision Centers [Member] | Series of Individually Immaterial Business Acquisitions
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract]
Goodwill	$ 4.6
Dealerships [Member]
Acquisitions [Line Items]
Number of stores purchased | store	20
Collision Center [Member]
Acquisitions [Line Items]
Number of stores purchased | store	4
Parts Distribution Centers [Member]
Acquisitions [Line Items]
Number of stores purchased | store			2

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Store Divestitures (Details) $ in Millions	3 Months Ended	12 Months Ended
	Dec. 31, 2021 USD ($) store	Dec. 31, 2021 USD ($) store	Dec. 31, 2020 USD ($) store franchises	Dec. 31, 2019 USD ($) store
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Gain on disposal | $	$ 10.6	$ 13.3	$ 2.5	$ 29.7
Number of Franchises Terminated | franchises			1
Dealerships Divested
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of businesses divested	1	3	1	8
Collision Centers Divested [Member]
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]
Number of businesses divested	17	18	2	2

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Exit or Disposal Cost Obligations (Details) - AutoNation Collision Parts Closure [Member] - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Liability for Exit or Disposal Costs [Roll Forward]
Costs incurred		$ 36.7
Contract Termination Charges, Other Associated Closing Costs, and Involuntary Termination Benefits [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Liability for exit or disposal costs, beginning balance	$ 3.4
Costs incurred	0.0
Costs paid or otherwise settled	(3.4)
Liability for exit or disposal costs, ending balance	0.0	3.4
Contract Termination [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Liability for exit or disposal costs, beginning balance	0.2
Costs incurred	0.0
Costs paid or otherwise settled	(0.2)
Liability for exit or disposal costs, ending balance	0.0	0.2
Other Restructuring [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Liability for exit or disposal costs, beginning balance	2.4
Costs incurred	0.0
Costs paid or otherwise settled	(2.4)
Liability for exit or disposal costs, ending balance	0.0	2.4
Employee Severance [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Liability for exit or disposal costs, beginning balance	0.8
Costs incurred	0.0
Costs paid or otherwise settled	(0.8)
Liability for exit or disposal costs, ending balance	$ 0.0	0.8
Other Operating Income (Expense) [Member] | Asset Impairment Charges [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Costs incurred		5.1
Other Operating Income (Expense) [Member] | Contract Termination [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Costs incurred		3.2
Selling, General and Administrative Expenses [Member] | Accelerated Amortization [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Costs incurred		3.2
Selling, General and Administrative Expenses [Member] | Other Restructuring [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Costs incurred		2.6
Selling, General and Administrative Expenses [Member] | Employee Severance [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Costs incurred		1.1
Depreciation and amortization [Member] | Accelerated Depreciation [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Costs incurred		3.9
Parts and Service [Member] | Cost of Sales [Member] | Inventory Valuation Adjustment [Member]
Liability for Exit or Disposal Costs [Roll Forward]
Costs incurred		$ 17.6

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Cash Flow Information (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Supplemental Cash Flow Information [Abstract]
Cash and cash equivalents	$ 60.4	$ 569.6
Restricted cash included in Current Assets	0.2	0.1
Total cash, cash equivalents, and restricted cash	60.6	569.7	$ 42.5	$ 49.4
Accrued purchases of property and equipment	25.9	9.6	29.4
Non-cash investing and financing activities related to property acquired under other financing arrangements		1.7	3.3
Interest payments, net of amounts capitalized and including interest on vehicle inventory financing	113.9	164.2	243.1
Income tax payments, net of income tax refunds	$ 458.3	$ 190.2	$ 107.5

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Financial Instruments and Fair Value Measurements (Summary of Carrying Values and Fair Values of Fixed Rate Debt) (Details) - USD ($) $ in Millions	3 Months Ended		12 Months Ended
	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Proceeds from Sale of Equity Securities		$ 109.4	$ 109.4	$ 105.4	$ 0.0
Equity security with readily determinable fair value			2.2	101.9
Equity security without a readily determinable fair value			56.7	50.0
Net gains recognized during the period on equity securities			10.9	131.5
Less: Net gains recognized during the period on equity securities			7.5	63.4
Unrealized gains recognized during the reporting period on equity securities still held at the reporting date			3.4	68.1
Nonrecurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Equity investments without readily determinable fair value, upward price adjustment	$ 3.4			0.0
Fixed Rate Debt [Member] | Carrying Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed rate debt			2,858.4	2,101.8
Fixed Rate Debt [Member] | Fair Value [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Fixed rate debt			$ 3,017.8	$ 2,341.1

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Financial Instruments And Fair Value Measurements (Nonfinancial Assets Measured on a Nonrecurring Basis) (Details) - USD ($)	3 Months Ended		12 Months Ended
	Jun. 30, 2021	Mar. 31, 2020	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain/(Loss) on goodwill impairment			$ 0	$ (318,300,000)	$ 0
Equity investment			56,700,000	50,000,000
Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain/(Loss) on goodwill impairment		$ (318,300,000)	0	(318,300,000)
Gain/(loss) on franchise rights and other			0	(59,900,000)
Gain/(Loss) on equity investment	$ 3,400,000			0
Gain/(loss) on right-of-use assets			(100,000)	(3,100,000)
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill			0	457,500,000
Franchise rights and other			0	26,200,000
Equity investment			53,400,000	0
Right of Use Asset			0	5,000,000.0
Continuing Operations [Member] | Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Gain/(Loss) on assets long-lived assets held and used			(3,100,000)	(9,200,000)
Continuing Operations [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-lived assets held and used			$ 10,400,000	$ 1,800,000

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Financial Instruments and Fair Value Measurements (Narrative) (Details)	3 Months Ended			12 Months Ended
	Mar. 31, 2021 store	Jun. 30, 2020 USD ($)	Mar. 31, 2020 USD ($)	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill impairment				$ 0	$ 318,300,000	$ 0
Franchise rights impairment				0	57,500,000	9,600,000
Franchise rights impairment, number of stores | store	8
Reporting Unit, Premium Luxury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill impairment					257,400,000
Reporting Unit, Collision Centers [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill impairment					41,600,000
Reporting Unit, Parts Centers [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill impairment					19,300,000
Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill impairment			$ 318,300,000	0	318,300,000
Nonrecurring [Member] | Reporting Unit, Premium Luxury [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill impairment			257,400,000
Nonrecurring [Member] | Reporting Unit, Collision Centers [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill impairment			41,600,000
Nonrecurring [Member] | Reporting Unit, Parts Centers [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Goodwill impairment			19,300,000
Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise rights				0	26,200,000
Nonrecurring [Member] | Other Intangible Assets [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impairment of finite lived intangible assets					2,400,000
Franchise Rights [Member] | Nonrecurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Franchise rights impairment		$ 0	57,500,000	0		$ 9,600,000
Franchise Rights [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise rights			$ 24,600,000
Franchise Rights [Member] | Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Long-term Revenue Growth Rate [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.020
Franchise Rights [Member] | Nonrecurring [Member] | Arithmetic Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Weighted Average Cost of Capital [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.085
Franchise Rights [Member] | Nonrecurring [Member] | Arithmetic Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Discount Rate [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.121
Franchise Rights [Member] | Nonrecurring [Member] | Arithmetic Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Long-term Pretax Income Margin [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.014
Franchise Rights [Member] | Nonrecurring [Member] | Arithmetic Average [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Contributory Asset Charges [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.062
Franchise Rights [Member] | Nonrecurring [Member] | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Discount Rate [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.111
Franchise Rights [Member] | Nonrecurring [Member] | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Long-term Pretax Income Margin [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.006
Franchise Rights [Member] | Nonrecurring [Member] | Minimum [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Contributory Asset Charges [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.042
Franchise Rights [Member] | Nonrecurring [Member] | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Discount Rate [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.143
Franchise Rights [Member] | Nonrecurring [Member] | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Long-term Pretax Income Margin [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.028
Franchise Rights [Member] | Nonrecurring [Member] | Maximum [Member] | Fair Value, Inputs, Level 3 [Member] | Measurement Input, Contributory Asset Charges [Member] | Valuation Technique, Discounted Cash Flow [Member]
Fair Value Measurement Inputs and Valuation Techniques [Abstract]
Franchise Rights, Measurement Input			0.121
Reported Value Measurement [Member] | Continuing Operations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held for sale				53,300,000	25,500,000
Reported Value Measurement [Member] | Discontinued Operations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets held for sale in discontinued operations				$ 1,100,000	$ 8,000,000

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Commitments and Contingencies (Details) $ in Millions	Dec. 31, 2021 USD ($)
Commitments and Contingencies Disclosure [Abstract]
Guarantor obligations, maximum exposure	$ 8.0
Total surety bonds, letters of credit, and cash deposits	104.8
Letters of credit, amount outstanding	$ 39.7

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Business and Credit Concentrations (Details) - USD ($) $ in Millions	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Risks and Uncertainties [Abstract]
Percentage Revenue from stores located in Florida, Texas, California	65.00%
Manufacturer receivables	$ 148.4	$ 210.0
Percentage of new vehicle sales from core brands (percent)	90.00%

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Segment Information (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) segments	Dec. 31, 2020 USD ($) segments	Dec. 31, 2019 USD ($) segments
Segment Reporting Information [Line Items]
Number of reportable segments | segments	3	3	3
Revenues	$ 25,844.0	$ 20,390.0	$ 21,335.7
Floorplan interest expense	25.7	63.8	138.4
Depreciation and amortization	193.3	198.9	180.5
Capital expenditures	231.9	137.2	257.4
Segment assets	8,943.6	9,887.2	10,543.3
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract]
Segment income (loss)	1,877.1	499.4	685.2
Other interest expense	(93.0)	(93.7)	(106.7)
Other income, net	24.3	144.4	34.1
INCOME FROM CONTINUING OPERATIONS BEFORE INCOME TAXES	1,808.4	550.1	612.6
AN Reportable Segments [Member]
Segment Reporting Information [Line Items]
Revenues	24,988.3	19,681.4	20,574.9
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract]
Segment income (loss)	2,147.9	1,219.8	957.3
AN Reportable Segment, Domestic [Member]
Segment Reporting Information [Line Items]
Revenues	7,959.9	6,490.6	6,671.4
Floorplan interest expense	7.9	23.8	51.8
Depreciation and amortization	39.3	39.8	37.2
Capital expenditures	15.5	17.9	38.6
Segment assets	1,758.5	2,130.0	2,483.6
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract]
Segment income (loss)	595.8	355.2	257.6
AN Reportable Segment, Import [Member]
Segment Reporting Information [Line Items]
Revenues	7,798.5	5,988.0	6,468.7
Floorplan interest expense	5.1	12.9	30.7
Depreciation and amortization	33.9	33.6	33.4
Capital expenditures	27.1	25.7	23.2
Segment assets	1,424.2	1,764.7	1,842.1
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract]
Segment income (loss)	714.7	386.4	318.6
AN Reportable Segment, Premium Luxury [Member]
Segment Reporting Information [Line Items]
Revenues	9,229.9	7,202.8	7,434.8
Floorplan interest expense	8.8	21.8	47.3
Depreciation and amortization	64.8	60.5	53.5
Capital expenditures	80.0	51.6	145.3
Segment assets	2,668.6	2,752.5	3,150.5
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract]
Segment income (loss)	837.4	478.2	381.1
Corporate and Other [Member]
Segment Reporting Information [Line Items]
Revenues	855.7	708.6	760.8
Floorplan interest expense	3.9	5.3	8.6
Depreciation and amortization	55.3	65.0	56.4
Capital expenditures	109.3	42.0	50.3
Segment assets	3,092.3	3,240.0	3,067.1
Segment Reporting Information, Income (Loss) before Income Taxes [Abstract]
Segment income (loss)	$ (270.8)	$ (720.4)	$ (272.1)

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Multiemployer Pension Plans (Details) $ in Millions	12 Months Ended
	Dec. 31, 2021 USD ($) store agreements	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
Multiemployer Plans [Line Items]
Contributions of AutoNation, insignificant plans	$ 0.1	$ 0.1	$ 0.1
Total Contributions	1.5	1.7	1.9
Automotive Industries Pension Plan [Member]
Multiemployer Plans [Line Items]
Contributions of AutoNation, significant plans	$ 1.2	1.4	1.6
Surcharge imposed	Yes
Surcharges paid	$ 0.5	$ 0.6	0.8
Pension protection act zone status	Red	Red
Number of collective-bargaining arrangements that require contributions to the Plan | agreements	3
Potential withdrawal obligation	$ 16.0
IAM National Pension Plan [Member]
Multiemployer Plans [Line Items]
Contributions of AutoNation, significant plans	$ 0.2	$ 0.2	$ 0.2
Surcharge imposed	Yes
Pension protection act zone status	Red	Red
Potential withdrawal obligation	$ 4.0
Collective Bargaining Agreement, Expiration Date, December 31, 2022 [Member] | Automotive Industries Pension Plan [Member]
Multiemployer Plans [Line Items]
Number of collective-bargaining arrangements that require contributions to the Plan | agreements	1
Collective Bargaining Agreement, Expiration Date, May 31, 2024 [Member] | Automotive Industries Pension Plan [Member]
Multiemployer Plans [Line Items]
Number of collective-bargaining arrangements that require contributions to the Plan | agreements	1
Collective Bargaining Agreement, Expiration Date, December 31, 2021 [Member] | Automotive Industries Pension Plan [Member]
Multiemployer Plans [Line Items]
Number of collective-bargaining arrangements that require contributions to the Plan | agreements	1
Collective Bargaining Agreement, Expiration Date, August 30, 2023 [Member] | IAM National Pension Plan [Member]
Multiemployer Plans [Line Items]
Number of collective-bargaining arrangements that require contributions to the Plan | agreements	2
Dealerships [Member]
Multiemployer Plans [Line Items]
Number of stores | store	247
Dealerships [Member] | Multiemployer Plans, Pension [Member]
Multiemployer Plans [Line Items]
Number of stores | store	5