| REVENUE RECOGNITION |
REVENUE RECOGNITION Disaggregation of Revenue Revenue from contracts with customers consists of the following: | | | | | | | | | | | | | For the Three Months Ended June 30, | | 2026 | | 2025 | | (In millions) | | Revenue: | | | | | New vehicle | $ | 2,330.2 | | | $ | 2,303.9 | | | Used vehicle retail | 1,094.0 | | | 1,129.4 | | | Used vehicle wholesale | 141.9 | | | 156.3 | | | New and used vehicle | 3,566.2 | | | 3,589.7 | | | Sale of vehicle parts and accessories | 123.2 | | | 124.4 | | | Vehicle repair and maintenance services | 511.4 | | | 477.1 | | | Parts and services | 634.6 | | | 601.5 | | | Finance and insurance, net | 183.8 | | | 182.0 | | | Total revenue | $ | 4,384.6 | | | $ | 4,373.1 | |
| | | | | | | | | | | | | For the Six Months Ended June 30, | | 2026 | | 2025 | | (In millions) | | Revenue: | | | | | New vehicle | $ | 4,431.0 | | | $ | 4,442.0 | | | Used vehicle retail | 2,153.6 | | | 2,208.3 | | | Used vehicle wholesale | 288.7 | | | 313.2 | | | New and used vehicle | 6,873.3 | | | 6,963.5 | | | Sale of vehicle parts and accessories | 250.9 | | | 249.9 | | | Vehicle repair and maintenance services | 1,010.5 | | | 939.2 | | | Parts and services | 1,261.4 | | | 1,189.1 | | | Finance and insurance, net | 362.9 | | | 368.9 | | | Total revenue | $ | 8,497.6 | | | $ | 8,521.6 | |
Contract Assets Changes in contract assets during the period are reflected in the table below. Contract assets related to vehicle repair and maintenance services are transferred to receivables when a repair order is completed and invoiced to the customer. Certain incremental sales commissions payable to obtain an F&I revenue contract with a customer have been capitalized and are amortized using the same pattern of recognition applicable to the associated F&I revenue contract. | | | | | | | | | | | | | | | | | | | | | | | | | Vehicle Repair and Maintenance Services | | Finance and Insurance, net | | Deferred Sales Commissions | | Total | | (In millions) | | Contract assets (current), December 31, 2025 | $ | 22.9 | | | $ | 11.8 | | | $ | 30.7 | | | $ | 65.4 | | | Contract assets (long-term), December 31, 2025 | $ | — | | | $ | — | | | $ | 82.1 | | | $ | 82.1 | | | | | | | | | | | Contract assets, January 1, 2026 | $ | 22.9 | | | $ | 11.8 | | | $ | 112.8 | | | $ | 147.5 | | | Transferred to receivables from contract assets recognized at the beginning of the period | (22.9) | | | (2.1) | | | — | | | (25.1) | | | Amortization of costs incurred to obtain a contract with a customer | — | | | — | | | (8.6) | | | (8.6) | | | Costs incurred to obtain a contract with a customer | — | | | — | | | 13.1 | | | 13.1 | | | Increases related to revenue recognized, inclusive of adjustments to constraint, during the period | 23.4 | | | 1.9 | | | — | | | 25.3 | | | Contract assets, March 31, 2026 | $ | 23.4 | | | $ | 11.5 | | | $ | 117.3 | | | $ | 152.2 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Transferred to receivables from contract assets recognized at the beginning of the period | (23.4) | | | (0.9) | | | — | | | (24.4) | | | Amortization of costs to obtain a contract with a customer | — | | | — | | | (13.0) | | | (13.0) | | | Costs incurred to obtain a contract with a customer | — | | | — | | | 13.9 | | | 13.9 | | | Increases related to revenue recognized, inclusive of adjustments to constraint, during the period | 23.1 | | | 0.4 | | | — | | | 23.5 | | | Contract assets, June 30, 2026 | $ | 23.1 | | | $ | 11.0 | | | $ | 118.2 | | | $ | 152.3 | | | | | | | | | | | Contract assets (current), June 30, 2026 | $ | 23.1 | | | $ | 11.0 | | | $ | 32.8 | | | $ | 66.9 | | | Contract assets (long-term), June 30, 2026 | $ | — | | | $ | — | | | $ | 85.4 | | | $ | 85.4 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Deferred Revenue The condensed consolidated balance sheet reflects $862.4 million and $828.2 million of total deferred revenue as of June 30, 2026 and December 31, 2025, respectively. Approximately $136.9 million of deferred revenue at December 31, 2025 was recorded in finance and insurance, net revenue in the condensed consolidated statements of income during the six months ended June 30, 2026.
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