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Revenue Recognition
 3 Months Ended
Mar. 31, 2024
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 and expenses. In the following tables, revenue is disaggregated by major lines of goods and services and timing of transfer of goods and services. The tables also include a reconciliation of the disaggregated revenue to reportable segment revenue.
Three Months Ended March 31, 2024
DomesticImportPremium Luxury
Corporate and other(1)
Total
Major Goods/Service Lines
New vehicle$814.4 $1,006.8 $1,158.1 $— $2,979.3 
Used vehicle543.0 557.2 736.2 159.7 1,996.1 
Parts and service302.1 294.7 417.2 158.4 1,172.4 
Finance and insurance, net97.0 119.2 103.3 15.2 334.7 
Other0.2 1.6 0.1 1.3 3.2 
$1,756.7 $1,979.5 $2,414.9 $334.6 $6,485.7 
Timing of Revenue Recognition
Goods and services transferred at a point in time$1,538.3 $1,748.3 $2,057.9 $229.1 $5,573.6 
Goods and services transferred over time(2)
218.4 231.2 357.0 105.5 912.1 
$1,756.7 $1,979.5 $2,414.9 $334.6 $6,485.7 
Three Months Ended March 31, 2023
DomesticImportPremium Luxury
Corporate and other(1)
Total
Major Goods/Service Lines
New vehicle$828.0 $856.4 $1,247.5 $— $2,931.9 
Used vehicle612.3 542.1 745.8 132.4 2,032.6 
Parts and service287.6 268.4 386.2 147.6 1,089.8 
Finance and insurance, net102.3 112.4 105.0 12.7 332.4 
Other0.9 10.0 0.4 0.7 12.0 
$1,831.1 $1,789.3 $2,484.9 $293.4 $6,398.7 
Timing of Revenue Recognition
Goods and services transferred at a point in time$1,629.3 $1,586.9 $2,159.3 $194.8 $5,570.3 
Goods and services transferred over time(2)
201.8 202.4 325.6 98.6 828.4 
$1,831.1 $1,789.3 $2,484.9 $293.4 $6,398.7 
(1) “Corporate and other” is comprised of our non-franchised businesses, including AutoNation USA used vehicle stores, collision centers, parts distribution centers, auction operations, and AutoNation Mobile Service.
(2) Represents revenue recognized during the period for automotive repair and maintenance services.
Transaction Price Allocated to Remaining Performance Obligations
We sell a vehicle maintenance program (the AutoNation Vehicle Care Program or “VCP”) under which 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 related to this program and recognize revenue as the maintenance services are rendered, since the customer benefits when we have completed the maintenance service.
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
TotalNext 12 Months13 - 36 Months37 - 60 Months
Revenue expected to be recognized on VCP contracts sold as of period end
$108.5 $37.2 $53.0 $18.3 
As a practical expedient, since all other automotive repair and maintenance services are generally performed within one year or less, we do not disclose estimated revenue expected to be recognized in the future for all other automotive repair and maintenance performance obligations that are unsatisfied (or partially unsatisfied) at the end of the reporting period or when we expect to recognize such revenue.
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 in Other Current Assets, our long-term contract asset is included in Other Assets, our current contract liability is included in Other Current Liabilities, and our long-term contract liability is included in Other Liabilities in our Unaudited Condensed Consolidated Balance Sheets.
The following table provides the balances of our receivables from contracts with customers and our current and long-term contract assets and contract liabilities:
March 31, 2024December 31, 2023
Receivables from contracts with customers, net$642.9 $762.0 
Contract Asset (Current)$22.2 $23.1 
Contract Asset (Long-Term)$3.3 $3.2 
Contract Liability (Current)$42.3 $42.5 
Contract Liability (Long-Term)$71.3 $70.6 
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 for performance obligations satisfied in previous periods. The following table presents revenue recognized during the period from amounts included in the contract liability balance at the beginning of the period and adjustments to revenue related to performance obligations satisfied in previous periods:
Three Months Ended
March 31,
20242023
Amounts included in contract liability at the beginning of the period$9.8 $9.4 
Performance obligations satisfied in previous periods$0.3 $(2.3)
Other significant changes include contract assets reclassified to receivables of $16.9 million for the three months ended March 31, 2024, and $25.7 million for the three months ended March 31, 2023.