Lithia Motors (LAD) 10-Q 27 Oct 21 2021 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2021	Oct. 27, 2021
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2021
Document Transition Report	false
Entity File Number	001-14733
Entity Registrant Name	LITHIA MOTORS INC
Entity Incorporation, State or Country Code	OR
Entity Tax Identification Number	93-0572810
Entity Address, Address Line One	150 N. Bartlett Street
Entity Address, City or Town	Medford,
Entity Address, State or Province	OR
Entity Address, Postal Zip Code	97501
City Area Code	541
Local Phone Number	776-6401
Title of 12(b) Security	Common stock without par value
Trading Symbol	LAD
Security Exchange Name	NYSE
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
Entity Shell Company	false
Entity Common Stock, Shares Outstanding (in shares)		30,279,561
Entity Central Index Key	0001023128
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Current assets:
Cash and cash equivalents		$ 137.8	$ 160.2
Accounts receivable, net of allowance for doubtful accounts of $14.3 and $5.9		812.6	614
Inventories, net		2,012.6	2,492.9
Other current assets		112.5	70.5
Total current assets		3,075.5	3,337.6
Property and equipment, net of accumulated depreciation of $399.9 and $338.0		2,352.9	2,197.5
Operating lease right-of-use assets		367.3	264
Goodwill		740.3	593
Franchise value		608.4	350.2
Other non-current assets		3,060.2	1,159.8
Total assets		10,204.6	7,902.1
Current liabilities:
Floor plan notes payable		329.4	234.2
Floor plan notes payable: non-trade		688.9	1,563
Current maturities of long-term debt		206.9	66
Trade payables		248.1	158.2
Accrued liabilities		708.5	458.3
Total current liabilities		2,181.8	2,479.7
Long-term debt, less current maturities		2,586.1	2,064.7
Deferred revenue		181.7	155.7
Deferred income taxes		172.9	146.3
Non-current operating lease liabilities		338.6	246.7
Other long-term liabilities		165.6	147.5
Total liabilities		5,626.7	5,240.6
Redeemable Noncontrolling Interest, Equity, Carrying Amount		33.3	0
Equity:
Preferred stock - no par value; authorized 15.0 shares; none outstanding		0	0
Additional paid-in capital		50.8	41.4
Accumulated other comprehensive loss		(3.6)	(6.3)
Retained earnings		2,579.1	1,838.2
Total stockholders’ equity - Lithia Motors, Inc.		4,542.7	2,661.5
Non-controlling interest		1.9	0
Total equity		4,544.6	2,661.5
Total liabilities, redeemable non-controlling interest and equity		10,204.6	7,902.1
Class A common stock
Equity:
Common stock	[1]	1,916.4	788.2
Class B common stock
Equity:
Common stock		$ 0	$ 0
[1]	Prior to June 7, 2021, common stock was classified as Class A common stock. The Class A common stock reclassification as common stock occurred in connection with the elimination of our classified common stock structure following the conversion of all Class B common stock to Class A common stock.

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions		Sep. 30, 2021	Dec. 31, 2020
Accounts receivable, allowance for doubtful accounts		$ 14.3	$ 5.9
Property and equipment, accumulated depreciation		$ 399.9	$ 338
Preferred stock, authorized (in shares)		15,000,000	15,000,000
Preferred stock, outstanding (in shares)		0	0
Class B common stock
Common stock, authorized (in shares)		0
Common stock, issued (in shares)		0	200,000
Common stock, outstanding (in shares)		0	200,000
Class A common stock
Common stock, authorized (in shares)	[1]	100,000,000	100,000,000
Common stock, issued (in shares)	[1]	30,300,000	26,300,000
Common stock, outstanding (in shares)	[1]	30,300,000	26,300,000
[1]	Prior to June 7, 2021, common stock was classified as Class A common stock. The Class A common stock reclassification as common stock occurred in connection with the elimination of our classified common stock structure following the conversion of all Class B common stock to Class A common stock.

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Revenues:
Total revenues	$ 6,169.8	$ 3,620.2	$ 16,522.2	$ 9,182.5
Cost of sales:
Total cost of sales	4,980.7	2,968.6	13,507	7,605.6
Gross profit	1,189.1	651.6	3,015.2	1,576.9
Asset impairments	1.9	0	1.9	7.9
Selling, general and administrative	673.3	389.1	1,757.6	1,039.6
Depreciation and amortization	34.4	22.9	91.5	67.3
Operating income	479.5	239.6	1,164.2	462.1
Floor plan interest expense	(3.6)	(6.1)	(17)	(28.3)
Other interest expense, net	(28)	(16.6)	(79.6)	(50.4)
Other income (expense), net	(25.7)	2.2	(14.6)	8.2
Income before income taxes	422.2	219.1	1,053	391.6
Income tax provision	(113.2)	(60.3)	(282.9)	(108.9)
Net income	309	158.8	770.1	282.7
Net income attributable to non-controlling interest	(0.8)	0	(0.8)	0
Net income attributable to redeemable non-controlling interest	(0.3)	0	(0.3)	0
Net income attributable to Lithia Motors, Inc.	$ 307.9	$ 158.8	$ 769	$ 282.7
Basic earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 10.18	$ 6.95	$ 27.12	$ 12.30
Shares used in basic per share calculations (in shares)	30.3	22.9	28.4	23
Diluted earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 10.11	$ 6.86	$ 26.91	$ 12.18
Shares used in diluted per share calculations (in shares)	30.5	23.1	28.6	23.2
Cash dividends paid per share (in dollars per share)	$ 0.35	$ 0.31	$ 1.01	$ 0.91
New vehicle retail
Revenues:
Total revenues	$ 2,898.2	$ 1,883.3	$ 8,237.7	$ 4,624.6
Cost of sales:
Total cost of sales	2,548.9	1,743.2	7,418	4,314.2
Used vehicle retail
Revenues:
Total revenues	2,079.5	1,093.2	5,236.6	2,889.7
Cost of sales:
Total cost of sales	1,846.9	948.4	4,635.2	2,556.8
Used vehicle wholesale
Revenues:
Total revenues	260.9	98.8	613.5	216.8
Cost of sales:
Total cost of sales	255.2	91.2	586.8	206.5
Finance and insurance
Revenues:
Total revenues	297	160.5	765	407.2
Service, body and parts
Revenues:
Total revenues	578.3	359.5	1,503.4	964.9
Cost of sales:
Total cost of sales	275.8	163.6	704.3	456.5
Fleet and other
Revenues:
Total revenues	55.9	24.9	166	79.3
Cost of sales:
Total cost of sales	$ 53.9	$ 22.2	$ 162.7	$ 71.6

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 309	$ 158.8	$ 770.1	$ 282.7
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	0.2	0	0.2	0
Gain (loss) on cash flow hedges, net of tax (expense) benefit of ($0.2), ($0.1), ($0.9), and $2.2, respectively	0.5	0.4	2.5	(6.1)
Total other comprehensive income (loss), net of tax	0.7	0.4	2.7	(6.1)
Comprehensive income	309.7	159.2	772.8	276.6
Comprehensive income attributable to non-controlling interest	(0.8)	0	(0.8)	0
Comprehensive income attributable to redeemable non-controlling interest	(0.3)	0	(0.3)	0
Comprehensive income attributable to Lithia Motors, Inc.	$ 308.6	$ 159.2	$ 771.7	$ 276.6

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Comprehensive Income [Abstract]
Gain (loss) on cash flow hedges, tax (expense) benefit	$ (0.2)	$ (0.1)	$ (0.9)	$ 2.2

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NON-CONTROLLING INTEREST - USD ($) $ in Millions		Total	Common Stock		Common StockClass B common stock	[1]	Additional Paid-In Capital	Accumulated Other Comprehensive Loss	Retained Earnings	Noncontrolling Interest	Adjustment to adopt ASC 326Retained Earnings
Beginning Balance at Dec. 31, 2019		$ 1,467.7	$ 20.5	[1]	$ 0.1		$ 46	$ (0.7)	$ 1,401.8	$ 0	$ (4.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation for stock and stock option issuances and excess tax benefits from option exercises			10.6	[1]			6.6
Issuance of stock in connection with employee stock plans	[1]		9.2
Repurchase of common stock			(34.4)	[1]			(16.2)
Foreign currency translation adjustment		0
Gain (loss) on cash flow hedges, net of tax (expense) benefit of ($0.2), ($0.1), ($0.9), and $2.2, respectively		(6.1)						(6.1)
Net income		282.7							282.7
Dividends paid									(20.9)
Ending Balance at Sep. 30, 2020		1,694.4	5.9	[1]	0.1		36.4	(6.8)	1,658.8	0
Redeemable non-controlling interest, beginning balances at Dec. 31, 2019		0
Redeemable non-controlling interest, ending balances at Sep. 30, 2020		0
Beginning Balance at Dec. 31, 2019		$ 1,467.7	20.5	[1]	0.1		46	(0.7)	1,401.8	0	$ (4.8)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]		Accounting Standards Update 2016-13 [Member]
Ending Balance at Dec. 31, 2020		$ 2,661.5	788.2	[1]	0		41.4	(6.3)	1,838.2	0
Redeemable non-controlling interest, beginning balances at Dec. 31, 2019		0
Redeemable non-controlling interest, ending balances at Dec. 31, 2020		0
Beginning Balance at Jun. 30, 2020		1,532.2	2.1	[1]	0.1		30.1	(7.2)	1,507.1	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation for stock and stock option issuances and excess tax benefits from option exercises			0.8	[1]			6.3
Issuance of stock in connection with employee stock plans	[1]		3.1
Repurchase of common stock	[1]		(0.1)
Foreign currency translation adjustment		0
Gain (loss) on cash flow hedges, net of tax (expense) benefit of ($0.2), ($0.1), ($0.9), and $2.2, respectively		0.4						0.4
Net income		158.8							158.8
Dividends paid									(7.1)
Ending Balance at Sep. 30, 2020		1,694.4	5.9	[1]	0.1		36.4	(6.8)	1,658.8	0
Redeemable non-controlling interest, beginning balances at Jun. 30, 2020		0
Redeemable non-controlling interest, ending balances at Sep. 30, 2020		0
Beginning Balance at Dec. 31, 2020		2,661.5	788.2	[1]	0		41.4	(6.3)	1,838.2	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation for stock and stock option issuances and excess tax benefits from option exercises			16.2	[1]			9.4
Issuance of stock in connection with employee stock plans	[1]		17.6
Repurchase of common stock	[1]		(15.9)
Equity issuances, net of issuance costs	[1]		1,110.3
Foreign currency translation adjustment		0.2						0.2
Gain (loss) on cash flow hedges, net of tax (expense) benefit of ($0.2), ($0.1), ($0.9), and $2.2, respectively		2.5						2.5
Net income		770.1							769	0.8
Dividends paid									(28.2)
Acquired non-controlling interest		33								1.1
Ending Balance at Sep. 30, 2021		4,544.6	1,916.4	[1]	0		50.8	(3.6)	2,579.1	1.9
Redeemable non-controlling interest, beginning balances at Dec. 31, 2020		0
Increase (Decrease) in Temporary Equity [Roll Forward]
Acquired redeemable non-controlling interest		33								1.1
Net income attributable to redeemable non-controlling interest		0.3
Redeemable non-controlling interest, ending balances at Sep. 30, 2021		33.3
Beginning Balance at Jun. 30, 2021		4,228.4	1,906.9	[1]	0		44	(4.3)	2,281.8	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Compensation for stock and stock option issuances and excess tax benefits from option exercises			1.6	[1]			6.8
Issuance of stock in connection with employee stock plans	[1]		8
Equity issuances, net of issuance costs	[1]		(0.1)
Foreign currency translation adjustment		0.2						0.2
Gain (loss) on cash flow hedges, net of tax (expense) benefit of ($0.2), ($0.1), ($0.9), and $2.2, respectively		0.5						0.5
Net income		309							307.9	0.8
Dividends paid									(10.6)
Acquired non-controlling interest		33								1.1
Ending Balance at Sep. 30, 2021		4,544.6	$ 1,916.4	[1]	$ 0		$ 50.8	$ (3.6)	$ 2,579.1	1.9
Redeemable non-controlling interest, beginning balances at Jun. 30, 2021		0
Increase (Decrease) in Temporary Equity [Roll Forward]
Acquired redeemable non-controlling interest		33								$ 1.1
Net income attributable to redeemable non-controlling interest		0.3
Redeemable non-controlling interest, ending balances at Sep. 30, 2021		$ 33.3
[1]	Prior to June 7, 2021, common stock was classified as Class A common stock. The Class A common stock reclassification as common stock occurred in connection with the elimination of our classified common stock structure following the conversion of all Class B common stock to Class A common stock.

CONSOLIDATED STATEMENTS OF EQ_2

CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NON-CONTROLLING INTEREST (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Statement of Stockholders' Equity [Abstract]
Gain (loss) on cash flow hedges, tax (expense) benefit	$ (0.2)	$ (0.1)	$ (0.9)	$ 2.2

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Cash flows from operating activities:
Net income	$ 770,100,000	$ 282,700,000
Adjustments to reconcile net income to net cash provided by operating activities:
Asset impairments	1,900,000	7,900,000
Depreciation and amortization	91,500,000	67,300,000
Stock-based compensation	25,600,000	17,200,000
Loss on redemption of senior notes	10,300,000	0
Gain on disposal of other assets	(2,500,000)	(500,000)
Loss (gain) on disposal of franchise	5,200,000	(1,400,000)
Unrealized investment loss	22,300,000	0
Deferred income taxes	25,600,000	6,800,000
Amortization of operating lease right-of-use assets	27,000,000	20,800,000
(Increase) decrease (net of acquisitions and dispositions):
Accounts receivable, net	(85,000,000)	(11,300,000)
Inventories	1,003,200,000	457,000,000
Other assets	(351,100,000)	(36,400,000)
Increase (decrease) (net of acquisitions and dispositions):
Floor plan notes payable	91,300,000	(128,000,000)
Trade payables	97,200,000	25,000,000
Accrued liabilities	236,900,000	66,800,000
Other long-term liabilities and deferred revenue	19,700,000	26,700,000
Net cash provided by operating activities	1,989,200,000	800,600,000
Cash flows from investing activities:
Capital expenditures	(194,100,000)	(125,600,000)
Proceeds from sales of assets	4,600,000	5,100,000
Cash paid for other investments	(9,800,000)	(9,900,000)
Cash paid for acquisitions, net of cash acquired	(2,409,500,000)	(609,500,000)
Proceeds from sales of stores	45,700,000	11,600,000
Net cash used in investing activities	(2,563,100,000)	(728,300,000)
Cash flows from financing activities:
Repayments on floor plan notes payable, net: non-trade	(840,900,000)	(317,800,000)
Borrowings on lines of credit	1,642,500,000	1,740,500,000
Repayments on lines of credit	(1,631,600,000)	(1,485,000,000)
Principal payments on long-term debt and finance lease liabilities, scheduled	(24,700,000)	(20,700,000)
Principal payments on long-term debt and finance lease liabilities, other	(483,600,000)	(6,300,000)
Proceeds from issuance of long-term debt	817,500,000	56,500,000
Payment of debt issuance costs	(10,900,000)	(4,100,000)
Proceeds from issuance of common stock	1,127,900,000	9,200,000
Repurchase of common stock	(15,900,000)	(50,600,000)
Dividends paid	(28,200,000)	(20,900,000)
Payment of contingent consideration related to acquisitions	(1,400,000)	0
Net cash provided by (used in) financing activities	550,700,000	(99,200,000)
Effect of exchange rate changes on cash and cash equivalents	900,000	0
Decrease in cash and cash equivalents	(22,300,000)	(26,900,000)
Cash and cash equivalents at beginning of period	160,100,000	84,000,000
Cash and cash equivalents at end of period	137,800,000	57,100,000
Supplemental disclosure of cash flow information:
Cash paid during the period for interest	89,500,000	82,700,000
Cash paid during the period for income taxes, net	237,300,000	74,100,000
Floor plan debt paid in connection with store disposals	8,700,000	22,000,000
Supplemental schedule of non-cash activities:
Debt issued in connection with acquisitions	355,400,000	0
Contingent consideration in connection with acquisitions	900,000	9,700,000
Debt assumed in connection with acquisitions	4,000,000	0
Right-of-use assets obtained in exchange for lease liabilities	$ 131,200,000	$ 44,100,000

Interim Financial Statements

Interim Financial Statements	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Interim Financial Statements	Interim Financial Statements Basis of Presentation These condensed Consolidated Financial Statements contain unaudited information as of September 30, 2021, and for the three and nine months ended September 30, 2021 and 2020. The unaudited interim financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain disclosures required by accounting principles generally accepted in the United States of America for annual financial statements are not included herein. In management’s opinion, these unaudited financial statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the information when read in conjunction with our 2020 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2020, is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 19, 2021. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year. Reclassifications Certain immaterial reclassifications of amounts previously reported have been made to the accompanying condensed Consolidated Financial Statements to maintain consistency and comparability between periods presented.

Contract Liabilities and Assets

Contract Liabilities and Assets	9 Months Ended
	Sep. 30, 2021
Disaggregation of Revenue [Abstract]
Contract Liabilities and Assets	Contract Liabilities and Assets Contract Liabilities We are the obligor on our lifetime oil contracts. Revenue is allocated to these performance obligations and is recognized over time as services are provided to the customer. The amount of revenue recognized is calculated, net of cancellations, using an input method, which most closely depicts performance of the contracts. Our contract liability balances were $226.9 million and $194.1 million as of September 30, 2021, and December 31, 2020, respectively; and we recognized $8.3 million and $26.8 million of revenue in the three and nine months ended September 30, 2021, respectively, related to our contract liability balance at December 31, 2020. Our contract liability balance is included in accrued liabilities and deferred revenue. Contract Assets Revenue from finance and insurance sales is recognized, net of estimated charge-backs, at the time of the sale of the related vehicle. We act as an agent in the sale of these contracts as the pricing is set by the third-party provider, and our commission is preset. A portion of the transaction price related to sales of finance and insurance contracts is considered variable consideration and is estimated and recognized upon the sale of the contract. Our contract asset balances associated with future estimated variable consideration were $9.0 million and $8.2 million as of September 30, 2021 and December 31, 2020, respectively; and are included in trade receivables and other non-current assets.

Accounts Receivable and Contrac

Accounts Receivable and Contract Assets	9 Months Ended
	Sep. 30, 2021
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Accounts Receivable and Contract Assets	Accounts Receivable and Contract Assets Accounts receivable consisted of the following: (in millions) September 30, 2021 December 31, 2020 Contracts in transit $ 300.7 $ 286.8 Trade receivables 111.1 67.0 Vehicle receivables 93.8 61.8 Manufacturer receivables 113.8 118.1 Auto loan receivables 535.1 175.6 Sales-type lease receivables 102.6 — Other receivables 18.8 11.6 1,275.9 720.9 Less: Allowance for doubtful accounts (14.3) (5.9) Less: Long-term portion of accounts receivable, net (449.0) (101.0) Total accounts receivable, net $ 812.6 $ 614.0 Accounts receivable classifications include the following: • Contracts in transit are receivables from various lenders for the financing of vehicles that we have arranged on behalf of the customer and are typically received approximately ten days after selling a vehicle. • Trade receivables are comprised of amounts due from customers for open charge accounts, lenders for the commissions earned on financing and others for commissions earned on service contracts and insurance products. • Vehicle receivables represent receivables for the portion of the vehicle sales price paid directly by the customer. • Manufacturer receivables represent amounts due from manufacturers, including holdbacks, rebates, incentives and warranty claims. • Auto loan receivables include amounts due from customers related to retail sales of vehicles and certain finance and insurance products. • Sales-type lease receivables include amounts due from customers related to retail leases of vehicles and certain finance and insurance products. Interest income on auto loan receivables is recognized based on the contractual terms of each loan and is accrued until repayment, reaching non-accrual status, charge-off, or repossession. Direct costs associated with loan originations are capitalized and expensed as an offset to interest income when recognized on the loans. All other receivables are recorded at invoice and do not bear interest until they are 60 days past due. The balances of auto loan receivables are made up of loans secured by the related vehicles. More than 98% of the portfolio is aged less than 60 days past due with less than 2% on non-accrual status. As of September 30, 2021, the allowance for credit losses related to auto loan and lease receivables was $17.2 million and included in allowance for doubtful accounts and other non-current assets. In accordance with Topic 326, the allowance for loan and lease losses is estimated based on our historical write-off experience, current conditions and forecasts as well as the value of any underlying assets securing these loans and is reviewed monthly. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance upon reaching 120 days past due status. The annual activity for charges and subsequent recoveries is immaterial. The remainder of our receivables are due primarily from manufacturer partners and various third-party lenders. The historical losses related to these balances are immaterial. The long-term portion of accounts receivable was included as a component of other non-current assets in the Consolidated Balance Sheets.

Inventories

Inventories	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
Inventories	Inventories The components of inventories, net, consisted of the following: (in millions) September 30, 2021 December 31, 2020 New vehicles $ 696.8 $ 1,556.6 Used vehicles 1,172.6 835.9 Parts and accessories 143.2 100.4 Total inventories $ 2,012.6 $ 2,492.9

Goodwill and Franchise Value

Goodwill and Franchise Value	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Franchise Value	Goodwill and Franchise Value The changes in the carrying amounts of goodwill are as follows: (in millions) Domestic Import Luxury Consolidated Balance as of December 31, 2019 ¹ $ 171.8 $ 197.3 $ 85.5 $ 454.6 Additions through acquisitions 2 33.3 94.3 17.3 144.9 Reductions through divestitures (0.1) (0.7) (2.2) (3.0) Reductions from impairments (0.5) (3.0) — (3.5) Balance as of December 31, 2020 ¹ 204.5 287.9 100.6 593.0 Additions through acquisitions 3 52.0 64.3 34.2 150.5 Reductions through divestitures — (3.2) — (3.2) Balance as of September 30, 2021 $ 256.5 $ 349.0 $ 134.8 $ 740.3 1 Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008. 2 Our purchase price allocation for the 2019 acquisitions were finalized in 2020. As a result, we added $144.9 million of goodwill. 3 Our purchase price allocation for a portion of the 2020 acquisitions was finalized in 2021. As a result, we added $150.5 million of goodwill. Our purchase price allocation for the remaining 2020 and 2021 acquisitions are preliminary and goodwill is not yet allocated to our reporting units. These amounts are included in other non-current assets until we finalize our purchase accounting. See Note 13. The changes in the carrying amounts of franchise value are as follows: (in millions) Franchise Value Balance as of December 31, 2019 $ 306.7 Additions through acquisitions 1 51.9 Reductions through divestitures (4.0) Reductions from impairments (4.4) Balance as of December 31, 2020 350.2 Additions through acquisitions 2 262.4 Reductions through divestitures (2.3) Reductions from impairments (1.9) Balance as of September 30, 2021 $ 608.4 1 Our purchase price allocation for the 2019 acquisitions were finalized in 2020. As a result, we added $51.9 million of franchise value. 2 Our purchase price allocation for a portion of the 2020 acquisitions was finalized in 2021. As a result, we added $262.4 million of franchise value. Our purchase price allocation for the remaining 2020 and 2021 acquisitions are preliminary and franchise value is not yet allocated to our reporting units. These amounts are included in other non-current assets until we finalize our purchase accounting. See Note 13.

Credit Facilities and Long-term

Credit Facilities and Long-term Debt	3 Months Ended
	Sep. 30, 2021
Debt Disclosure [Abstract]
Credit Facilities and Long-term Debt	Credit Facilities and Long-term DebtOn August 30, 2021, we entered into a credit agreement with The Bank of Nova Scotia. The credit agreement makes available three primary lines of credit including a working capital revolving credit facility of up to $50 million CAD, up to $300 million CAD floor plan financing for new and used vehicles; and $350 million CAD to provide wholesale lease financing. The credit facilities accrue interest at rates equal to the Lender’s prime lending rate or the Canadian Dollar Offered Rate plus, in each case, a spread, with the spreads ranging from 0.25% per annum to 1.50% per annum. The credit agreement includes various financial and other covenants typical of such agreements. All indebtedness under this agreement is due on demand. On August 1, 2021, we redeemed in full the aggregate $300 million principal amount of our 5.250% senior notes due 2025 at a redemption price equal to 102.625% of the principal amount of the notes plus accrued and unpaid interest thereon.

Equity and Redeemable Non-contr

Equity and Redeemable Non-controlling Interest	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Equity and Redeemable Non-controlling Interest	Equity and Redeemable Non-controlling Interest Repurchases of Common Stock Repurchases of our common stock occurred under a repurchase authorization granted by our Board of Directors and related to shares withheld as part of the vesting of restricted stock units (RSUs). On October 22, 2018, our Board of Directors approved an additional $250 million repurchase authorization of our common stock, increasing our total share repurchase authorization to $500 million. Share repurchases under this authorization were as follows: Repurchases Occurring in 2021 Cumulative Repurchases as of September 30, 2021 Shares Average Price Shares Average Price Share Repurchase Authorization — $ — 3,719,048 $ 84.02 As of September 30, 2021, we had $187.5 million available for repurchases pursuant to our share repurchase authorization. In addition, during 2021, we repurchased 54,284 shares at an average price of $292.97 per share, for a total of $15.9 million, related to tax withholding associated with the vesting of RSUs. The repurchase of shares related to tax withholding associated with stock awards does not reduce the number of shares available for repurchase as approved by our Board of Directors. Follow-on Public Offering On May 24, 2021, we completed the public offering of 3,571,428 shares of our common stock, no par value per share, which included the exercise in full by the underwriters of their option to purchase up to 465,838 additional shares of our common stock, at the public offering price of $322.00 per share. We received $1.11 billion from the offering, net of the underwriting discount and before deducting the offering expenses of $0.6 million. ATM Equity Offering On July 24, 2020, we entered into an ATM Equity Offering Sales Agreement, which allows us to offer and sell, from time to time, shares of our common stock, no par value, having an aggregate gross sales price of up to $400 million. The shares will be issued pursuant to a registration statement on Form S-3 (File No. 333-239969), which became effective upon its filing on July 21, 2020. Under this agreement, we may enter into forward share purchase transactions. As of September 30, 2021, no amounts have been issued in relation to the ATM Equity Offering Sales Agreement. Redeemable Non-controlling Interest

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Fair Value Measurements	Fair Value Measurements Factors used in determining the fair value of our financial assets and liabilities are summarized into three broad categories: • Level 1 - quoted prices in active markets for identical securities; • Level 2 - other significant observable inputs, including quoted prices for similar securities, interest rates, prepayment spreads, credit risk; and • Level 3 - significant unobservable inputs, including our own assumptions in determining fair value. We determined that the carrying value of cash equivalents, accounts receivable, trade payables, accrued liabilities and short-term borrowings approximate their fair values because of the nature of their terms and current market rates of these instruments. We believe the carrying value of our variable rate debt approximates fair value. We have investments primarily consisting of our investment in Shift Technologies, Inc. (Shift), a San Francisco-based digital retail company. Shift has a readily determinable fair value following Shift going public in a reverse-merger deal with Insurance Acquisition, a special purpose acquisition company, in the fourth quarter of 2020. We calculated the fair value of this investment using quoted prices for the identical security (Level 1) and recorded the fair value as part of other non-current assets. An additional component of our investment in Shift consists of shares in escrow subject to release upon certain market conditions being met. The fair value of this component of our investment in Shift is measured using observable Level 2 market expectations at each measurement date and is recorded as part of other non-current assets. For the three and nine months ended September 30, 2021, we recognized a $23.2 million and $22.3 million unrealized investment loss related to Shift, which was recorded as a component of Other income, net. No amounts were recognized for the three and nine months ended September 30, 2020. We have fixed rate debt primarily consisting of amounts outstanding under our senior notes and real estate mortgages. We calculated the estimated fair value of the senior notes using quoted prices for the identical liability (Level 1) and calculated the estimated fair value of the fixed rate real estate mortgages using a discounted cash flow methodology with estimated current interest rates based on a similar risk profile and duration (Level 2). The fixed cash flows are discounted and summed to compute the fair value of the debt. As of September 30, 2021, our real estate mortgages and other debt, which includes capital leases, had maturity dates between October 1, 2021, and July 1, 2038. We have derivative instruments consisting of interest rate collars. The fair value of derivative assets and liabilities are measured using observable Level 2 market expectations at each measurement date and is recorded as current liabilities and other long-term liabilities in the Consolidated Balance Sheets. See Note 12 for more details regarding our derivative contracts. We estimate the value of other long-lived assets that are recorded at fair value on a non-recurring basis on a market valuation approach. We use prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets, as well as our historical experience in divestitures, acquisitions and real estate transactions. Additionally, we may use a cost valuation approach to value long-lived assets when a market valuation approach is unavailable. Under this approach, we determine the cost to replace the service capacity of an asset, adjusted for physical and economic obsolescence. When available, we use valuation inputs from independent valuation experts, such as real estate appraisers and brokers, to corroborate our estimates of fair value. Real estate appraisers’ and brokers’ valuations are typically developed using one or more valuation techniques including market, income and replacement cost approaches. Because these valuations contain unobservable inputs, we classified the measurement of fair value of long-lived assets as Level 3. There were no changes to our valuation techniques during the nine-month period ended September 30, 2021. Below are our investments that are measured at fair value (in millions): Fair Value at September 30, 2021 Level 1 Level 2 Level 3 Measured on a recurring basis: Investments $ 82.2 $ 2.9 $ — Fair Value at December 31, 2020 Level 1 Level 2 Level 3 Measured on a recurring basis: Investments $ 97.9 $ 9.4 $ — Below are our derivative assets and liabilities that are measured at fair value (in millions): Fair Value at September 30, 2021 Level 1 Level 2 Level 3 Measured on a recurring basis: Derivative asset $ — $ 4.2 $ — Derivative liability — 9.4 — Fair Value at December 31, 2020 Level 1 Level 2 Level 3 Measured on a recurring basis: Derivative asset $ — $ 0.5 $ — Derivative liability — 9.0 — A summary of the aggregate carrying values, excluding unamortized debt issuance cost, and fair values of our long-term fixed interest rate debt is as follows: (in millions) September 30, 2021 December 31, 2020 Carrying value 5.250% Senior notes due 2025 $ — $ 300.0 4.625% Senior notes due 2027 400.0 400.0 4.375% Senior notes due 2031 550.0 550.0 3.875% Senior notes due 2029 800.0 — Real estate mortgages and other debt 483.0 714.8 $ 2,233.0 $ 1,964.8 Fair value 5.250% Senior notes due 2025 $ — $ 311.6 4.625% Senior notes due 2027 421.5 425.0 4.375% Senior notes due 2031 588.5 589.9 3.875% Senior notes due 2029 832.0 — Real estate mortgages and other debt 506.6 713.2 $ 2,348.6 $ 2,039.7

Net Income Per Share

Net Income Per Share	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Net Income Per Share	Net Income Per Share We compute net income per share using the two-class method. Under this method, basic net income per share is computed using the weighted average number of common shares outstanding during the period excluding common shares underlying equity awards that are unvested or subject to forfeiture. Diluted net income per share is computed using the weighted average number of common shares and, if dilutive, potential common shares outstanding during the period. Potential common shares consist of the common shares issuable upon the net exercise of stock options and unvested RSUs and is reflected in diluted earnings per share by application of the treasury stock method. The computation of the diluted net income per share of Class A common stock assumes the conversion of Class B common stock, while the diluted net income per share of Class B common stock does not assume the conversion of those shares. Prior to June 7, 2021, our common stock was classified as Class A common stock. The Class A common stock reclassification as common stock occurred pursuant to an amendment and restatement of our Articles of Incorporation in connection with the elimination of the Company’s classified common stock structure following the conversion of all Class B common stock to Class A common stock. Prior to the reclassification, except with respect to voting and transfer rights, the rights of the holders of our Class A and Class B common stock were identical. Under our Articles of Incorporation, the Class A and Class B common stock shared equally in any dividends, liquidation proceeds or other distribution with respect to our common stock and the Articles of Incorporation can only be amended by a vote of the shareholders. Additionally, Oregon law provides that amendments to our Articles of Incorporation that would adversely alter the rights, powers or preferences of a given class of stock, must be approved by the class of stock adversely affected by the proposed amendment. As a result, the undistributed earnings for each year are allocated based on the contractual participation rights of the Class A and Class B common shares as if the earnings for the year had been distributed. Because the liquidation and dividend rights were identical, the undistributed earnings are allocated on a proportionate basis. The following is a reconciliation of net income and weighted average shares used for our basic earnings per share (EPS) and diluted EPS: Three Months Ended September 30, 2021 2020 (in millions, except per share amounts) Class A Class B Class A Class B Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - basic $ 307.9 $ — $ 156.0 $ 2.8 Reallocation of net income due to conversion of Class B to Class A common shares outstanding — — 0.2 — Conversion of Class B common shares into Class A common shares — — 2.6 — Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - diluted $ 307.9 $ — $ 158.8 $ 2.8 Weighted average common shares outstanding – basic 30.3 — 22.5 0.4 Conversion of Class B common shares into Class A common shares — — 0.4 — Effect of dilutive stock options on weighted average common shares 0.2 — 0.2 — Weighted average common shares outstanding – diluted 30.5 — 23.1 0.4 Basic earnings per share attributable to Lithia Motors, Inc. $ 10.18 $ — $ 6.95 $ 6.95 Diluted earnings per share attributable to Lithia Motors, Inc. $ 10.11 $ — $ 6.86 $ 6.86 The effect of antidilutive securities on Class A and Class B common stock was evaluated for the three-month periods ended September 30, 2021, and 2020 and was determined to be immaterial. Nine Months Ended September 30, 2021 2020 (in millions, except per share amounts) Class A Class B Class A Class B Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - basic $ 768.4 $ 0.6 $ 276.4 $ 6.3 Reallocation of net income due to conversion of class B to class A common shares outstanding — — 0.5 — Conversion of class B common shares into class A common shares 0.6 — 5.8 — Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - diluted $ 769.0 $ 0.6 $ 282.7 $ 6.3 Weighted average common shares outstanding – basic 28.4 — 22.5 0.5 Conversion of class B common shares into class A common shares — — 0.5 — Effect of employee stock purchases and restricted stock units on weighted average common shares 0.2 — 0.2 — Weighted average common shares outstanding – diluted 28.6 — 23.2 0.5 Basic earnings per share attributable to Lithia Motors, Inc. $ 27.12 $ 27.12 $ 12.29 $ 12.29 Diluted earnings per share attributable to Lithia Motors, Inc. $ 26.91 $ 26.91 $ 12.18 $ 12.18

Segments

Segments	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Segments	Segments While we have determined that each individual store is a reporting unit, we have aggregated our reporting units into three reportable segments based on their economic similarities: Domestic, Import and Luxury. Our Domestic segment is comprised of retail automotive franchises that sell new vehicles manufactured by Chrysler, General Motors and Ford. Our Import segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by Honda, Toyota, Subaru, Nissan and Volkswagen. Our Luxury segment is comprised of retail automotive franchises that sell new vehicles manufactured primarily by BMW, Mercedes and Lexus. The franchises in each segment also sell used vehicles, parts and automotive services, as well as automotive finance and insurance products. Corporate and other revenue and income includes the results of operations of our stand-alone body shops offset by unallocated corporate overhead expenses, such as corporate personnel costs, and certain unallocated reserve and elimination adjustments. Additionally, certain internal corporate expense allocations increase income for Corporate and other while decreasing segment income for the reportable segments. These internal corporate expense allocations are used to increase comparability of our dealerships and reflect the capital burden a stand-alone dealership would experience. Examples of these internal allocations include internal rent expense, internal floor plan financing charges, and internal fees charged to offset employees within our corporate headquarters who perform certain dealership functions. We define our chief operating decision maker (CODM) to be certain members of our executive management group. Historical and forecasted operational performance is evaluated on a store-by-store basis and on a consolidated basis by the CODM. We derive the operating results of the segments directly from our internal management reporting system. The accounting policies used to derive segment results are substantially the same as those used to determine our consolidated results, excepted for the internal allocation within Corporate and other discussed above. Our CODM does not regularly review capital expenditures on a reporting unit level. Performance measurement of each reportable segment by the CODM are based on several metrics, including earnings from operations. The CODM uses these results, in part, to evaluate the performance of and to allocate resources, mainly associated with expected inventory and working capital requirements, to each of the reportable segments. Certain financial information on a segment basis is as follows: Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Revenues: Domestic New vehicle retail $ 766.1 $ 621.3 $ 2,305.3 $ 1,591.0 Used vehicle retail 699.7 378.8 1,803.7 1,096.4 Used vehicle wholesale 74.5 31.9 174.4 77.7 Finance and insurance 80.5 53.2 217.7 149.2 Service, body and parts 170.2 118.0 450.0 337.5 Fleet and other 28.2 11.5 67.4 35.1 1,819.2 1,214.7 5,018.5 3,286.9 Import New vehicle retail 1,376.9 823.7 3,730.7 1,996.6 Used vehicle retail 847.9 452.2 2,127.8 1,152.8 Used vehicle wholesale 99.5 42.2 247.8 88.7 Finance and insurance 162.9 81.2 408.9 195.1 Service, body and parts 235.3 141.3 596.9 371.4 Fleet and other 4.9 11.1 37.5 28.9 2,727.4 1,551.7 7,149.6 3,833.5 Luxury New vehicle retail 750.9 440.0 2,204.1 1,038.2 Used vehicle retail 530.3 261.6 1,309.9 642.2 Used vehicle wholesale 72.8 24.7 171.9 50.2 Finance and insurance 56.1 25.5 145.7 60.1 Service, body and parts 162.8 96.0 434.7 244.8 Fleet and other 22.2 1.9 59.5 14.0 1,595.1 849.7 4,325.8 2,049.5 6,141.7 3,616.1 16,493.9 9,169.9 Corporate and other 28.1 4.1 28.3 12.6 $ 6,169.8 $ 3,620.2 $ 16,522.2 $ 9,182.5 Segment income 1 : Domestic $ 123.6 $ 81.1 $ 335.6 $ 168.3 Import 255.4 102.6 573.2 176.2 Luxury 108.5 39.2 249.8 53.1 Total segment income for reportable segments $ 487.5 $ 222.9 $ 1,158.6 $ 397.6 1 Segment income for each of the segments is a Non-GAAP measure defined as Income from operations before income taxes, depreciation and amortization, other interest expense and other income, net. Reconciliation of total segment income for reportable segments to our consolidated income before income taxes: Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Total segment income for reportable segments $ 487.5 $ 222.9 $ 1,158.6 $ 397.6 Corporate and other 22.8 33.5 80.1 103.5 Depreciation and amortization (34.4) (22.9) (91.5) (67.3) Other interest expense (28.0) (16.6) (79.6) (50.4) Other income (expense), net (25.7) 2.2 (14.6) 8.2 Income before income taxes $ 422.2 $ 219.1 $ 1,053.0 $ 391.6 Total assets by reportable segments is as follows: (in millions) September 30, 2021 December 31, 2020 Total assets: Domestic $ 1,282.1 $ 1,262.4 Import 1,634.8 1,654.7 Luxury 1,100.8 1,132.4 Corporate and other 6,186.9 3,852.6 $ 10,204.6 $ 7,902.1

Leases

Leases	9 Months Ended
	Sep. 30, 2021
Leases [Abstract]
Leases	Leases We lease certain dealerships, office space, land and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We have elected not to bifurcate lease and non-lease components related to leases of real property. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Our finance lease liabilities are included in long-term debt, with the current portion included in current maturities of long-term debt. The related assets are included in property, plant and equipment, net of accumulated amortization. These amounts are included in other non-current assets until we finalize our purchase accounting. We rent or sublease certain real estate to third parties.
Leases	Leases We lease certain dealerships, office space, land and equipment. Leases with an initial term of 12 months or less are not recorded on the balance sheet; we recognize lease expense for these leases on a straight-line basis over the lease term. We have elected not to bifurcate lease and non-lease components related to leases of real property. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Certain of our lease agreements include rental payments based on a percentage of retail sales over contractual levels and others include rental payments adjusted periodically for inflation. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants. Our finance lease liabilities are included in long-term debt, with the current portion included in current maturities of long-term debt. The related assets are included in property, plant and equipment, net of accumulated amortization. These amounts are included in other non-current assets until we finalize our purchase accounting. We rent or sublease certain real estate to third parties.

Derivative Financial Instrument

Derivative Financial Instruments	9 Months Ended
	Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Derivative Financial Instruments	Derivative Financial Instruments We account for derivative financial instruments by recording the fair value as either an asset or liability in our Consolidated Balance Sheets and recognize the resulting gains or losses as adjustments to accumulated other comprehensive income (loss). We do not hold or issue derivative financial instruments for trading or speculative purposes. For derivative instruments that hedge the exposure to variability in expected future cash flows that are designated and qualify as cash flow hedges, the gain or loss on the derivative instrument is reported as a component of accumulated other comprehensive loss (AOCI) in equity and reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. To receive hedge accounting treatment, cash flow hedges must be highly effective in offsetting changes to expected future cash flows on hedged transactions. In 2019, to hedge the business exposure to rising interest rates on a portion of our variable rate debt, we entered into a five-year, zero-cost interest rate collar, with an aggregate notional amount of $300 million, effective June 1, 2019. This instrument hedges interest rate risk related to a portion of our $688.2 million of non-trade floor plan notes payable. The table below presents the liabilities related to the zero-cost interest rate collar: (Dollars in millions) Accrued Liabilities Other Long-Term Liabilities Total Balance as of December 31, 2019 $ (0.1) $ (0.9) $ (1.0) Loss recorded from interest rate collar (1.8) (5.1) (6.9) Balance as of March 31, 2020 (1.9) (6.0) (7.9) Amounts reclassified from AOCI to floorplan interest expense 0.4 — 0.4 Loss recorded from interest rate collar (1.0) (1.3) (2.3) Balance as of June 30, 2020 (2.5) (7.3) (9.8) Amounts reclassified from AOCI to floorplan interest expense 0.7 — 0.7 (Loss) gain recorded from interest rate collar (0.7) 0.6 (0.1) Balance as of September 30, 2020 (2.5) (6.7) (9.2) Amounts reclassified from AOCI to floorplan interest expense 0.7 — 0.7 (Loss) gain recorded from interest rate collar (0.8) 0.7 (0.1) Balance as of December 31, 2020 (2.6) (6.0) (8.6) Amounts reclassified from AOCI to floorplan interest expense 0.7 — 0.7 (Loss) gain recorded from interest rate collar (0.6) 2.4 1.8 Balance as of March 31, 2021 (2.5) (3.6) (6.1) Amounts reclassified from AOCI to floorplan interest expense 0.7 — 0.7 (Loss) gain recorded from interest rate collar (0.7) 0.2 (0.5) Balance as of June 30, 2021 (2.5) (3.4) (5.9) Amounts reclassified from AOCI to floorplan interest expense 0.7 — 0.7 (Loss) gain recorded from interest rate collar (0.7) 0.7 — Balance as of September 30, 2021 $ (2.5) $ (2.7) $ (5.2) As of September 30, 2021, the amount of net losses we expect to reclassify from AOCI into interest expense in earnings within the next twelve months is $2.7 million. However, the actual amount reclassified could vary due to future changes in the fair value of these derivatives. In 2020, we entered into two offsetting derivative arrangements that do not qualify for hedge accounting. These are both related to a securitization facility, effective October 2, 2020. We purchased and sold offsetting interest rate caps, both of which have a five-year term with notional amounts of $100 million. In 2021, we entered into two additional offsetting derivative arrangements that do not qualify for hedge accounting. These are both related to a securitization facility, effective June 15, 2021. We purchased and sold offsetting interest rate caps, both of which have a five-year term with notional amounts of $100 million. As of September 30, 2021, the balance on all four agreements was an offsetting $4.2 million and was located in other current assets and accrued liabilities, respectively. See Note 8 for information on the fair value of the derivative contracts.

Acquisitions

Acquisitions	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Acquisitions	Acquisitions In the first nine months of 2021, we completed the following acquisitions: • In February 2021, Fields Chrysler Jeep Dodge Ram and Land Rover Orlando in Florida. • In March 2021, Fink Auto Group in Florida. • In March 2021, Avondale Nissan in Arizona. • In April 2021, The Suburban Collection in Michigan. • In April 2021, Planet Honda in New Jersey. • In May 2021, Superstore Auto Group in Nevada. • In May 2021, Center BMW and Center Acura in California. • In June 2021, Southwest Kia Group in Arizona. • In June 2021, Herrin-Gear Toyota in Mississippi. • In June 2021, Michael’s Subaru and Michael’s Toyota in Washington. • In July 2021, Koby Subaru in Alabama. • In August 2021, Rock Honda in California. • In August 2021, Pfaff Automotive Partners in Canada. • In September 2021, Curry Honda in Georgia. • In September 2021, Orange Coast Chrysler Dodge Jeep Ram Fiat in California. Revenue and operating income contributed by the 2021 acquisitions subsequent to the date of acquisition were as follows (in millions): Nine Months Ended September 30, 2021 Revenue $ 2,385.9 Operating income 121.9 In the first nine months of 2020, we completed the following acquisitions: • In February 2020, Sacramento Lexus and Roseville Lexus in California. • In June 2020, Hank’s Body Shop in Montana. • In June 2020, Smolich Chrysler Dodge Jeep Ram and Smolich Nissan in Oregon. • In July 2020, BMW of San Francisco in California. • In July 2020, Ladin Subaru in California. • In August 2020, John Eagle Auto Group in Texas. • In September 2020, Cogdill Chrysler Jeep Dodge Ram in Tennessee. All acquisitions were accounted for as business combinations under the acquisition method of accounting. The results of operations of the acquired stores are included in our Consolidated Financial Statements from the date of acquisition. The following tables summarize the consideration paid for the 2021 acquisitions and the preliminary purchase price allocations for identified assets acquired and liabilities assumed as of the acquisition date: (in millions) Consideration Cash paid, net of cash acquired $ 2,376.4 Debt issued 355.4 Preliminary fair value of redeemable non-controlling interest 33.0 Total consideration transferred $ 2,764.8 (in millions) Assets Acquired and Liabilities Assumed Accounts receivable $ 1.1 Inventories, net 565.6 Property and equipment, net 112.6 Other non-current assets 2,117.4 Floor plan notes payable (3.9) Other long-term liabilities (28.0) $ 2,764.8 The purchase price allocations for the acquisitions from the fourth quarter of 2020 through the third quarter of 2021 are preliminary, and we have not obtained and evaluated all of the detailed information necessary to finalize the opening balance sheet amounts in all respects. We recorded the purchase price allocations based upon information that is currently available. Unallocated items are recorded as a component of other non-current assets in the Consolidated Balance Sheets. We expect substantially all of the goodwill related to acquisitions completed in 2021 to be deductible for federal income tax purposes. In the three and nine-month periods ended September 30, 2021, we recorded $6.3 million and $17.9 million, respectively, in acquisition-related expenses as a component of selling, general and administrative expense. Comparatively, we recorded $0.6 million and $1.6 million of acquisition-related expenses in the same periods of 2020. The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three and nine-month periods ended September 30, 2021 and 2020, had occurred on January 1, 2020: Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2021 2020 2021 2020 Revenue $ 6,483.3 $ 5,840.4 $ 18,699.8 $ 15,455.9 Net income attributable to Lithia Motors, Inc. 317.8 216.9 825.4 400.5 Basic earnings attributable to Lithia Motors, Inc. per share 10.50 9.49 29.10 17.43 Diluted earnings attributable to Lithia Motors, Inc. per share 10.44 9.37 28.88 17.26 These amounts have been calculated by applying our accounting policies and estimates. The results of the acquired stores have been adjusted to reflect the following: depreciation on a straight-line basis over the expected lives for property and equipment, accounting for inventory on a specific identification method, and recognition of interest expense for real estate financing related to stores where we purchased the facility. No nonrecurring proforma adjustments directly attributable to the acquisitions are included in the reported proforma revenues and earnings.

Recent Accounting Pronouncement

Recent Accounting Pronouncements	9 Months Ended
	Sep. 30, 2021
Accounting Changes and Error Corrections [Abstract]
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes.” The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We adopted the new guidance in the first quarter of 2021. The adoption of the guidance did not have a material impact on our consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, “Codification Improvements.” The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We adopted the new guidance in the first quarter of 2021. The adoption of the guidance did not have a material impact on our consolidated financial statements.

Net Investment In Operating Lea

Net Investment In Operating Leases	9 Months Ended
	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Net Investment In Operating Leases	Net Investment in Operating Leases In the third quarter of 2021, we purchased a leasing entity and the sales-type financing and operating leases it manages. Net investment in operating leases consists primarily of lease contracts for vehicles with individuals and business entities. Assets subject to operating leases are depreciated using the straight-line method over the term of the lease to reduce the asset to its estimated residual value. Estimated residual values are based on assumptions for used vehicle prices at lease termination and the number of vehicles that are expected to be returned. Net investment in operating leases was as follows: (in millions) September 30, 2021 December 31, 2020 Vehicles, at cost 1 $ 53.1 $ — Accumulated depreciation 1 (1.1) — Net investment in operating leases $ 52.0 $ — 1 Vehicles, at cost and accumulated depreciation are recorded in other current assets, on the balance sheet.

Interim Financial Statements (P

Interim Financial Statements (Policies)	9 Months Ended
	Sep. 30, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Basis of Presentation	Basis of Presentation These condensed Consolidated Financial Statements contain unaudited information as of September 30, 2021, and for the three and nine months ended September 30, 2021 and 2020. The unaudited interim financial statements have been prepared pursuant to the rules and regulations for reporting on Form 10-Q. Accordingly, certain disclosures required by accounting principles generally accepted in the United States of America for annual financial statements are not included herein. In management’s opinion, these unaudited financial statements reflect all adjustments (which include only normal recurring adjustments) necessary for a fair presentation of the information when read in conjunction with our 2020 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2020, is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 19, 2021. The results of operations for the interim periods presented are not necessarily indicative of the results to be expected for the full year.
Reclassifications	Reclassifications Certain immaterial reclassifications of amounts previously reported have been made to the accompanying condensed Consolidated Financial Statements to maintain consistency and comparability between periods presented.
Revenue Recognition	Contract Liabilities We are the obligor on our lifetime oil contracts. Revenue is allocated to these performance obligations and is recognized over time as services are provided to the customer. The amount of revenue recognized is calculated, net of cancellations, using an input method, which most closely depicts performance of the contracts. Our contract liability balances were $226.9 million and $194.1 million as of September 30, 2021, and December 31, 2020, respectively; and we recognized $8.3 million and $26.8 million of revenue in the three and nine months ended September 30, 2021, respectively, related to our contract liability balance at December 31, 2020. Our contract liability balance is included in accrued liabilities and deferred revenue. Contract Assets Revenue from finance and insurance sales is recognized, net of estimated charge-backs, at the time of the sale of the related vehicle. We act as an agent in the sale of these contracts as the pricing is set by the third-party provider, and our commission is preset. A portion of the transaction price related to sales of finance and insurance contracts is considered variable consideration and is estimated and recognized upon the sale of the contract. Our contract asset balances associated with future estimated variable consideration were $9.0 million and $8.2 million as of September 30, 2021 and December 31, 2020, respectively; and are included in trade receivables and other non-current assets.
Accounts Receivable and Contract Assets	Accounts receivable classifications include the following: • Contracts in transit are receivables from various lenders for the financing of vehicles that we have arranged on behalf of the customer and are typically received approximately ten days after selling a vehicle. • Trade receivables are comprised of amounts due from customers for open charge accounts, lenders for the commissions earned on financing and others for commissions earned on service contracts and insurance products. • Vehicle receivables represent receivables for the portion of the vehicle sales price paid directly by the customer. • Manufacturer receivables represent amounts due from manufacturers, including holdbacks, rebates, incentives and warranty claims. • Auto loan receivables include amounts due from customers related to retail sales of vehicles and certain finance and insurance products. • Sales-type lease receivables include amounts due from customers related to retail leases of vehicles and certain finance and insurance products. Interest income on auto loan receivables is recognized based on the contractual terms of each loan and is accrued until repayment, reaching non-accrual status, charge-off, or repossession. Direct costs associated with loan originations are capitalized and expensed as an offset to interest income when recognized on the loans. All other receivables are recorded at invoice and do not bear interest until they are 60 days past due. The balances of auto loan receivables are made up of loans secured by the related vehicles. More than 98% of the portfolio is aged less than 60 days past due with less than 2% on non-accrual status. As of September 30, 2021, the allowance for credit losses related to auto loan and lease receivables was $17.2 million and included in allowance for doubtful accounts and other non-current assets. In accordance with Topic 326, the allowance for loan and lease losses is estimated based on our historical write-off experience, current conditions and forecasts as well as the value of any underlying assets securing these loans and is reviewed monthly. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance upon reaching 120 days past due status. The annual activity for charges and subsequent recoveries is immaterial. The remainder of our receivables are due primarily from manufacturer partners and various third-party lenders. The historical losses related to these balances are immaterial. The long-term portion of accounts receivable was included as a component of other non-current assets in the Consolidated Balance Sheets.
Fair Value Disclosures for Financial Assets and Liabilities	Factors used in determining the fair value of our financial assets and liabilities are summarized into three broad categories: • Level 1 - quoted prices in active markets for identical securities; • Level 2 - other significant observable inputs, including quoted prices for similar securities, interest rates, prepayment spreads, credit risk; and • Level 3 - significant unobservable inputs, including our own assumptions in determining fair value. We determined that the carrying value of cash equivalents, accounts receivable, trade payables, accrued liabilities and short-term borrowings approximate their fair values because of the nature of their terms and current market rates of these instruments. We believe the carrying value of our variable rate debt approximates fair value. We have investments primarily consisting of our investment in Shift Technologies, Inc. (Shift), a San Francisco-based digital retail company. Shift has a readily determinable fair value following Shift going public in a reverse-merger deal with Insurance Acquisition, a special purpose acquisition company, in the fourth quarter of 2020. We calculated the fair value of this investment using quoted prices for the identical security (Level 1) and recorded the fair value as part of other non-current assets. An additional component of our investment in Shift consists of shares in escrow subject to release upon certain market conditions being met. The fair value of this component of our investment in Shift is measured using observable Level 2 market expectations at each measurement date and is recorded as part of other non-current assets. For the three and nine months ended September 30, 2021, we recognized a $23.2 million and $22.3 million unrealized investment loss related to Shift, which was recorded as a component of Other income, net. No amounts were recognized for the three and nine months ended September 30, 2020. We have fixed rate debt primarily consisting of amounts outstanding under our senior notes and real estate mortgages. We calculated the estimated fair value of the senior notes using quoted prices for the identical liability (Level 1) and calculated the estimated fair value of the fixed rate real estate mortgages using a discounted cash flow methodology with estimated current interest rates based on a similar risk profile and duration (Level 2). The fixed cash flows are discounted and summed to compute the fair value of the debt. As of September 30, 2021, our real estate mortgages and other debt, which includes capital leases, had maturity dates between October 1, 2021, and July 1, 2038. We have derivative instruments consisting of interest rate collars. The fair value of derivative assets and liabilities are measured using observable Level 2 market expectations at each measurement date and is recorded as current liabilities and other long-term liabilities in the Consolidated Balance Sheets. See Note 12 for more details regarding our derivative contracts. We estimate the value of other long-lived assets that are recorded at fair value on a non-recurring basis on a market valuation approach. We use prices and other relevant information generated primarily by recent market transactions involving similar or comparable assets, as well as our historical experience in divestitures, acquisitions and real estate transactions. Additionally, we may use a cost valuation approach to value long-lived assets when a market valuation approach is unavailable. Under this approach, we determine the cost to replace the service capacity of an asset, adjusted for physical and economic obsolescence. When available, we use valuation inputs from independent valuation experts, such as real estate appraisers and brokers, to corroborate our estimates of fair value. Real estate appraisers’ and brokers’ valuations are typically developed using one or more valuation techniques including market, income and replacement cost approaches. Because these valuations contain unobservable inputs, we classified the measurement of fair value of long-lived assets as Level 3.
Recent Accounting Pronouncements	In December 2019, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes.” The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We adopted the new guidance in the first quarter of 2021. The adoption of the guidance did not have a material impact on our consolidated financial statements. In October 2020, the FASB issued ASU 2020-10, “Codification Improvements.” The pronouncement is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2020, with early adoption permitted. We adopted the new guidance in the first quarter of 2021. The adoption of the guidance did not have a material impact on our consolidated financial statements.

Accounts Receivable and Contr_2

Accounts Receivable and Contract Assets (Tables)	9 Months Ended
	Sep. 30, 2021
Accounts Receivable, after Allowance for Credit Loss [Abstract]
Schedule of Accounts Receivable	Accounts receivable consisted of the following: (in millions) September 30, 2021 December 31, 2020 Contracts in transit $ 300.7 $ 286.8 Trade receivables 111.1 67.0 Vehicle receivables 93.8 61.8 Manufacturer receivables 113.8 118.1 Auto loan receivables 535.1 175.6 Sales-type lease receivables 102.6 — Other receivables 18.8 11.6 1,275.9 720.9 Less: Allowance for doubtful accounts (14.3) (5.9) Less: Long-term portion of accounts receivable, net (449.0) (101.0) Total accounts receivable, net $ 812.6 $ 614.0

Inventories (Tables)

Inventories (Tables)	9 Months Ended
	Sep. 30, 2021
Inventory Disclosure [Abstract]
Schedule of Inventories	The components of inventories, net, consisted of the following: (in millions) September 30, 2021 December 31, 2020 New vehicles $ 696.8 $ 1,556.6 Used vehicles 1,172.6 835.9 Parts and accessories 143.2 100.4 Total inventories $ 2,012.6 $ 2,492.9

Goodwill and Franchise Value (T

Goodwill and Franchise Value (Tables)	9 Months Ended
	Sep. 30, 2021
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amounts of goodwill are as follows: (in millions) Domestic Import Luxury Consolidated Balance as of December 31, 2019 ¹ $ 171.8 $ 197.3 $ 85.5 $ 454.6 Additions through acquisitions 2 33.3 94.3 17.3 144.9 Reductions through divestitures (0.1) (0.7) (2.2) (3.0) Reductions from impairments (0.5) (3.0) — (3.5) Balance as of December 31, 2020 ¹ 204.5 287.9 100.6 593.0 Additions through acquisitions 3 52.0 64.3 34.2 150.5 Reductions through divestitures — (3.2) — (3.2) Balance as of September 30, 2021 $ 256.5 $ 349.0 $ 134.8 $ 740.3 1 Net of accumulated impairment losses of $299.3 million recorded during the year ended December 31, 2008. 2 Our purchase price allocation for the 2019 acquisitions were finalized in 2020. As a result, we added $144.9 million of goodwill. 3 Our purchase price allocation for a portion of the 2020 acquisitions was finalized in 2021. As a result, we added $150.5 million of goodwill. Our purchase price allocation for the remaining 2020 and 2021 acquisitions are preliminary and goodwill is not yet allocated to our reporting units. These amounts are included in other non-current assets until we finalize our purchase accounting. See Note 13.
Schedule of Franchise Value	The changes in the carrying amounts of franchise value are as follows: (in millions) Franchise Value Balance as of December 31, 2019 $ 306.7 Additions through acquisitions 1 51.9 Reductions through divestitures (4.0) Reductions from impairments (4.4) Balance as of December 31, 2020 350.2 Additions through acquisitions 2 262.4 Reductions through divestitures (2.3) Reductions from impairments (1.9) Balance as of September 30, 2021 $ 608.4 1 Our purchase price allocation for the 2019 acquisitions were finalized in 2020. As a result, we added $51.9 million of franchise value. 2 Our purchase price allocation for a portion of the 2020 acquisitions was finalized in 2021. As a result, we added $262.4 million of franchise value. Our purchase price allocation for the remaining 2020 and 2021 acquisitions are preliminary and franchise value is not yet allocated to our reporting units. These amounts are included in other non-current assets until we finalize our purchase accounting. See Note 13.

Equity and Redeemable Non-con_2

Equity and Redeemable Non-controlling Interest (Tables)	9 Months Ended
	Sep. 30, 2021
Equity [Abstract]
Schedule of Share Repurchases	Share repurchases under this authorization were as follows: Repurchases Occurring in 2021 Cumulative Repurchases as of September 30, 2021 Shares Average Price Shares Average Price Share Repurchase Authorization — $ — 3,719,048 $ 84.02

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2021
Fair Value Disclosures [Abstract]
Summary of Long-Lived Assets Measured at Fair Value	Below are our investments that are measured at fair value (in millions): Fair Value at September 30, 2021 Level 1 Level 2 Level 3 Measured on a recurring basis: Investments $ 82.2 $ 2.9 $ — Fair Value at December 31, 2020 Level 1 Level 2 Level 3 Measured on a recurring basis: Investments $ 97.9 $ 9.4 $ — Below are our derivative assets and liabilities that are measured at fair value (in millions): Fair Value at September 30, 2021 Level 1 Level 2 Level 3 Measured on a recurring basis: Derivative asset $ — $ 4.2 $ — Derivative liability — 9.4 — Fair Value at December 31, 2020 Level 1 Level 2 Level 3 Measured on a recurring basis: Derivative asset $ — $ 0.5 $ — Derivative liability — 9.0 —
Schedule of Aggregate Carrying Values and Fair Values of Long-term Fixed Interest Rate Debt	A summary of the aggregate carrying values, excluding unamortized debt issuance cost, and fair values of our long-term fixed interest rate debt is as follows: (in millions) September 30, 2021 December 31, 2020 Carrying value 5.250% Senior notes due 2025 $ — $ 300.0 4.625% Senior notes due 2027 400.0 400.0 4.375% Senior notes due 2031 550.0 550.0 3.875% Senior notes due 2029 800.0 — Real estate mortgages and other debt 483.0 714.8 $ 2,233.0 $ 1,964.8 Fair value 5.250% Senior notes due 2025 $ — $ 311.6 4.625% Senior notes due 2027 421.5 425.0 4.375% Senior notes due 2031 588.5 589.9 3.875% Senior notes due 2029 832.0 — Real estate mortgages and other debt 506.6 713.2 $ 2,348.6 $ 2,039.7

Net Income Per Share (Tables)

Net Income Per Share (Tables)	9 Months Ended
	Sep. 30, 2021
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following is a reconciliation of net income and weighted average shares used for our basic earnings per share (EPS) and diluted EPS: Three Months Ended September 30, 2021 2020 (in millions, except per share amounts) Class A Class B Class A Class B Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - basic $ 307.9 $ — $ 156.0 $ 2.8 Reallocation of net income due to conversion of Class B to Class A common shares outstanding — — 0.2 — Conversion of Class B common shares into Class A common shares — — 2.6 — Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - diluted $ 307.9 $ — $ 158.8 $ 2.8 Weighted average common shares outstanding – basic 30.3 — 22.5 0.4 Conversion of Class B common shares into Class A common shares — — 0.4 — Effect of dilutive stock options on weighted average common shares 0.2 — 0.2 — Weighted average common shares outstanding – diluted 30.5 — 23.1 0.4 Basic earnings per share attributable to Lithia Motors, Inc. $ 10.18 $ — $ 6.95 $ 6.95 Diluted earnings per share attributable to Lithia Motors, Inc. $ 10.11 $ — $ 6.86 $ 6.86 Nine Months Ended September 30, 2021 2020 (in millions, except per share amounts) Class A Class B Class A Class B Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - basic $ 768.4 $ 0.6 $ 276.4 $ 6.3 Reallocation of net income due to conversion of class B to class A common shares outstanding — — 0.5 — Conversion of class B common shares into class A common shares 0.6 — 5.8 — Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - diluted $ 769.0 $ 0.6 $ 282.7 $ 6.3 Weighted average common shares outstanding – basic 28.4 — 22.5 0.5 Conversion of class B common shares into class A common shares — — 0.5 — Effect of employee stock purchases and restricted stock units on weighted average common shares 0.2 — 0.2 — Weighted average common shares outstanding – diluted 28.6 — 23.2 0.5 Basic earnings per share attributable to Lithia Motors, Inc. $ 27.12 $ 27.12 $ 12.29 $ 12.29 Diluted earnings per share attributable to Lithia Motors, Inc. $ 26.91 $ 26.91 $ 12.18 $ 12.18

Segments (Tables)

Segments (Tables)	9 Months Ended
	Sep. 30, 2021
Segment Reporting [Abstract]
Schedule of Certain Information on a Segment Basis	Certain financial information on a segment basis is as follows: Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Revenues: Domestic New vehicle retail $ 766.1 $ 621.3 $ 2,305.3 $ 1,591.0 Used vehicle retail 699.7 378.8 1,803.7 1,096.4 Used vehicle wholesale 74.5 31.9 174.4 77.7 Finance and insurance 80.5 53.2 217.7 149.2 Service, body and parts 170.2 118.0 450.0 337.5 Fleet and other 28.2 11.5 67.4 35.1 1,819.2 1,214.7 5,018.5 3,286.9 Import New vehicle retail 1,376.9 823.7 3,730.7 1,996.6 Used vehicle retail 847.9 452.2 2,127.8 1,152.8 Used vehicle wholesale 99.5 42.2 247.8 88.7 Finance and insurance 162.9 81.2 408.9 195.1 Service, body and parts 235.3 141.3 596.9 371.4 Fleet and other 4.9 11.1 37.5 28.9 2,727.4 1,551.7 7,149.6 3,833.5 Luxury New vehicle retail 750.9 440.0 2,204.1 1,038.2 Used vehicle retail 530.3 261.6 1,309.9 642.2 Used vehicle wholesale 72.8 24.7 171.9 50.2 Finance and insurance 56.1 25.5 145.7 60.1 Service, body and parts 162.8 96.0 434.7 244.8 Fleet and other 22.2 1.9 59.5 14.0 1,595.1 849.7 4,325.8 2,049.5 6,141.7 3,616.1 16,493.9 9,169.9 Corporate and other 28.1 4.1 28.3 12.6 $ 6,169.8 $ 3,620.2 $ 16,522.2 $ 9,182.5 Segment income 1 : Domestic $ 123.6 $ 81.1 $ 335.6 $ 168.3 Import 255.4 102.6 573.2 176.2 Luxury 108.5 39.2 249.8 53.1 Total segment income for reportable segments $ 487.5 $ 222.9 $ 1,158.6 $ 397.6 1 Segment income for each of the segments is a Non-GAAP measure defined as Income from operations before income taxes, depreciation and amortization, other interest expense and other income, net. Reconciliation of total segment income for reportable segments to our consolidated income before income taxes: Three Months Ended Nine Months Ended (in millions) 2021 2020 2021 2020 Total segment income for reportable segments $ 487.5 $ 222.9 $ 1,158.6 $ 397.6 Corporate and other 22.8 33.5 80.1 103.5 Depreciation and amortization (34.4) (22.9) (91.5) (67.3) Other interest expense (28.0) (16.6) (79.6) (50.4) Other income (expense), net (25.7) 2.2 (14.6) 8.2 Income before income taxes $ 422.2 $ 219.1 $ 1,053.0 $ 391.6
Reconciliation of Assets from Segment to Consolidated	Total assets by reportable segments is as follows: (in millions) September 30, 2021 December 31, 2020 Total assets: Domestic $ 1,282.1 $ 1,262.4 Import 1,634.8 1,654.7 Luxury 1,100.8 1,132.4 Corporate and other 6,186.9 3,852.6 $ 10,204.6 $ 7,902.1

Derivative Financial Instrume_2

Derivative Financial Instruments (Tables)	9 Months Ended
	Sep. 30, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Schedule of Interest Rate Derivatives	The table below presents the liabilities related to the zero-cost interest rate collar: (Dollars in millions) Accrued Liabilities Other Long-Term Liabilities Total Balance as of December 31, 2019 $ (0.1) $ (0.9) $ (1.0) Loss recorded from interest rate collar (1.8) (5.1) (6.9) Balance as of March 31, 2020 (1.9) (6.0) (7.9) Amounts reclassified from AOCI to floorplan interest expense 0.4 — 0.4 Loss recorded from interest rate collar (1.0) (1.3) (2.3) Balance as of June 30, 2020 (2.5) (7.3) (9.8) Amounts reclassified from AOCI to floorplan interest expense 0.7 — 0.7 (Loss) gain recorded from interest rate collar (0.7) 0.6 (0.1) Balance as of September 30, 2020 (2.5) (6.7) (9.2) Amounts reclassified from AOCI to floorplan interest expense 0.7 — 0.7 (Loss) gain recorded from interest rate collar (0.8) 0.7 (0.1) Balance as of December 31, 2020 (2.6) (6.0) (8.6) Amounts reclassified from AOCI to floorplan interest expense 0.7 — 0.7 (Loss) gain recorded from interest rate collar (0.6) 2.4 1.8 Balance as of March 31, 2021 (2.5) (3.6) (6.1) Amounts reclassified from AOCI to floorplan interest expense 0.7 — 0.7 (Loss) gain recorded from interest rate collar (0.7) 0.2 (0.5) Balance as of June 30, 2021 (2.5) (3.4) (5.9) Amounts reclassified from AOCI to floorplan interest expense 0.7 — 0.7 (Loss) gain recorded from interest rate collar (0.7) 0.7 — Balance as of September 30, 2021 $ (2.5) $ (2.7) $ (5.2)

Acquisitions (Tables)

Acquisitions (Tables)	9 Months Ended
	Sep. 30, 2021
Business Combination and Asset Acquisition [Abstract]
Pro Forma Summary of All Acquisitions	Revenue and operating income contributed by the 2021 acquisitions subsequent to the date of acquisition were as follows (in millions): Nine Months Ended September 30, 2021 Revenue $ 2,385.9 Operating income 121.9 The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three and nine-month periods ended September 30, 2021 and 2020, had occurred on January 1, 2020: Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2021 2020 2021 2020 Revenue $ 6,483.3 $ 5,840.4 $ 18,699.8 $ 15,455.9 Net income attributable to Lithia Motors, Inc. 317.8 216.9 825.4 400.5 Basic earnings attributable to Lithia Motors, Inc. per share 10.50 9.49 29.10 17.43 Diluted earnings attributable to Lithia Motors, Inc. per share 10.44 9.37 28.88 17.26
Summary of Acquisitions	The following tables summarize the consideration paid for the 2021 acquisitions and the preliminary purchase price allocations for identified assets acquired and liabilities assumed as of the acquisition date: (in millions) Consideration Cash paid, net of cash acquired $ 2,376.4 Debt issued 355.4 Preliminary fair value of redeemable non-controlling interest 33.0 Total consideration transferred $ 2,764.8
Assets Acquired and Liabilities Assumed	(in millions) Assets Acquired and Liabilities Assumed Accounts receivable $ 1.1 Inventories, net 565.6 Property and equipment, net 112.6 Other non-current assets 2,117.4 Floor plan notes payable (3.9) Other long-term liabilities (28.0) $ 2,764.8

Net Investment In Operating L_2

Net Investment In Operating Leases (Tables)	9 Months Ended
	Sep. 30, 2021
Investments, Debt and Equity Securities [Abstract]
Schedule of Net Investment in Operating Leases	Net investment in operating leases was as follows: (in millions) September 30, 2021 December 31, 2020 Vehicles, at cost 1 $ 53.1 $ — Accumulated depreciation 1 (1.1) — Net investment in operating leases $ 52.0 $ — 1 Vehicles, at cost and accumulated depreciation are recorded in other current assets, on the balance sheet.

Contract Liabilities and Asse_2

Contract Liabilities and Assets (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Disaggregation of Revenue [Abstract]
Contract liability	$ 226.9	$ 226.9	$ 194.1
Contract liability, revenue recognized	8.3	26.8
Contract asset	$ 9	$ 9	$ 8.2

Accounts Receivable and Contr_3

Accounts Receivable and Contract Assets (Summary of Accounts Receivable) (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 1,275.9	$ 720.9
Less: Allowance for doubtful accounts	(14.3)	(5.9)
Less: Long-term portion of accounts receivable, net	(449)	(101)
Accounts receivable, net	812.6	614
Contracts in transit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	300.7	286.8
Trade receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	111.1	67
Vehicle receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	93.8	61.8
Manufacturer receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	113.8	118.1
Auto loan and lease receivables total
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	535.1	175.6
Less: Allowance for doubtful accounts	(17.2)
Sales-type lease receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	102.6	0
Other receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 18.8	$ 11.6

Accounts Receivable and Contr_4

Accounts Receivable and Contract Assets (Additional Information) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Period that contracts in transit are outstanding	10 days
Threshold period for interest to bear on receivables	60 days
Allowance for doubtful accounts	$ 14.3	$ 5.9
Auto loan receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables, 60 days or less past due, percent	98.00%
Receivables, 60 days or less past due, non-accrual status, percent	2.00%
Allowance for doubtful accounts	$ 17.2

Inventories (Components of Inve

Inventories (Components of Inventories, net) (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Inventory [Line Items]
Total inventories	$ 2,012.6	$ 2,492.9
New vehicles
Inventory [Line Items]
Total inventories	696.8	1,556.6
Used vehicles
Inventory [Line Items]
Total inventories	1,172.6	835.9
Parts and accessories
Inventory [Line Items]
Total inventories	$ 143.2	$ 100.4

Goodwill and Franchise Value (S

Goodwill and Franchise Value (Schedule of Goodwill) (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2021	Dec. 31, 2020	Dec. 31, 2008
Goodwill [Roll Forward]
Beginning balance	$ 593	$ 454.6
Additions through acquisitions	150.5	144.9
Reductions through divestitures	(3.2)	(3)
Reductions from impairments		(3.5)
Ending balance	740.3	593
Accumulated impairment loss			$ 299.3
Domestic
Goodwill [Roll Forward]
Beginning balance	204.5	171.8
Additions through acquisitions	52	33.3
Reductions through divestitures	0	(0.1)
Reductions from impairments		(0.5)
Ending balance	256.5	204.5
Import
Goodwill [Roll Forward]
Beginning balance	287.9	197.3
Additions through acquisitions	64.3	94.3
Reductions through divestitures	(3.2)	(0.7)
Reductions from impairments		(3)
Ending balance	349	287.9
Luxury
Goodwill [Roll Forward]
Beginning balance	100.6	85.5
Additions through acquisitions	34.2	17.3
Reductions through divestitures	0	(2.2)
Reductions from impairments		0
Ending balance	$ 134.8	$ 100.6

Goodwill and Franchise Value _2

Goodwill and Franchise Value (Schedule of Franchise Value) (Details) - USD ($) $ in Millions	3 Months Ended	9 Months Ended	12 Months Ended
	Jun. 30, 2021	Sep. 30, 2021	Dec. 31, 2020
Indefinite-lived Intangible Assets [Roll Forward]
Beginning balance		$ 350.2	$ 306.7
Additions through acquisitions		262.4	51.9
Reductions through divestitures		(2.3)	(4)
Reductions from impairments	$ (1.9)		(4.4)
Ending balance		$ 608.4	$ 350.2

Credit Facilities and Long term

Credit Facilities and Long term Debt (Details) $ in Millions	Aug. 30, 2021CAD ($)lineOfCredit	Aug. 01, 2021USD ($)	Sep. 30, 2021
Line of Credit
Short-term Debt [Line Items]
Debt instrument, number | lineOfCredit	3
Line of Credit | Revolving Credit Facility
Short-term Debt [Line Items]
Credit facility borrowing capacity (up to)	$ 50
Line of Credit | Floor Plan Financing for New and Used Vehicles
Short-term Debt [Line Items]
Credit facility borrowing capacity (up to)	300
Line of Credit | Wholesale Lease Financing
Short-term Debt [Line Items]
Credit facility borrowing capacity (up to)	$ 350
Senior Notes | 5.250% Senior notes due 2025
Short-term Debt [Line Items]
Aggregate principal amount		$ 300,000,000
Stated interest rate (percent)		5.25%	5.25%
Debt redemption price, percentage of principal amount redeemed		102.625%
Minimum | Line of Credit
Short-term Debt [Line Items]
Basis spread on variable rate	0.25%
Maximum | Line of Credit
Short-term Debt [Line Items]
Basis spread on variable rate	1.50%

Equity and Redeemable Non-con_3

Equity and Redeemable Non-controlling Interest (Details) - USD ($)	Aug. 30, 2021	May 24, 2021	Sep. 30, 2021	Sep. 30, 2021	Jul. 24, 2020	Oct. 22, 2018
Equity, Class of Treasury Stock [Line Items]
Additional authorized repurchase amount						$ 250,000,000
Authorized repurchase amount			$ 500,000,000	$ 500,000,000
Shares repurchased pursuant to repurchase authorizations (in shares)			0	3,719,048
Shares repurchased pursuant to repurchase authorizations, average price (in dollars per share)			$ 0	$ 84.02
Remaining authorized repurchase amount			$ 187,500,000	$ 187,500,000
Redeemable non-controlling interest, redemption feature, period	3 years
Restricted Stock Units (RSUs)
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased			54,284
Average purchase price per share (in dollars per share)			$ 292.97
Amount related to tax withholdings associated with vesting of RSUs			$ 15,900,000
Follow-On Public Offering
Equity, Class of Treasury Stock [Line Items]
Sale of stock, number of shares issued (in shares)		3,571,428
Sale of stock, price (in dollars per share)		$ 322
Proceeds from issuance of stock		$ 1,110,000,000
Payments of stock issuance costs		$ 600,000
Over-Allotment Option
Equity, Class of Treasury Stock [Line Items]
Sale of stock, number of shares issued (in shares)		465,838
ATM Equity Offering
Equity, Class of Treasury Stock [Line Items]
Proceeds from issuance of stock			$ 0
Sale of stock, maximum aggregate gross sales price					$ 400,000,000

Fair Value Measurements (Narrat

Fair Value Measurements (Narrative) (Details) - USD ($)	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Fair Value Disclosures [Abstract]
Unrealized investment loss	$ (23,200,000)	$ 0	$ (22,300,000)	$ 0

Fair Value Measurements (Assets

Fair Value Measurements (Assets Measured at Fair Value on a Recurring Basis) (Details) - Fair Value, Recurring - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 82.2	$ 97.9
Derivative asset	0	0
Derivative liability	0	0
Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	2.9	9.4
Derivative asset	4.2	0.5
Derivative liability	9.4	9
Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Derivative asset	0	0
Derivative liability	$ 0	$ 0

Fair Value Measurements (Long-t

Fair Value Measurements (Long-term Fixed Interest Rate Debt) (Details) - USD ($) $ in Millions	Sep. 30, 2021	Aug. 01, 2021	Dec. 31, 2020
Senior Notes | 5.250% Senior notes due 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (percent)	5.25%	5.25%
Senior Notes | 4.625% Senior notes due 2027
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (percent)	4.625%
Senior Notes | 4.375% Senior notes due 2031
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (percent)	4.375%
Senior Notes | 3.875% Senior notes due 2029
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate (percent)	3.875%
Carrying value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	$ 2,233		$ 1,964.8
Carrying value | Senior Notes | 5.250% Senior notes due 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0		300
Carrying value | Senior Notes | 4.625% Senior notes due 2027
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	400		400
Carrying value | Senior Notes | 4.375% Senior notes due 2031
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	550		550
Carrying value | Senior Notes | 3.875% Senior notes due 2029
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	800		0
Carrying value | Real estate mortgages and other debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	483		714.8
Fair value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	2,348.6		2,039.7
Fair value | Senior Notes | 5.250% Senior notes due 2025
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0		311.6
Fair value | Senior Notes | 4.625% Senior notes due 2027
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	421.5		425
Fair value | Senior Notes | 4.375% Senior notes due 2031
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	588.5		589.9
Fair value | Senior Notes | 3.875% Senior notes due 2029
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	832		0
Fair value | Real estate mortgages and other debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	$ 506.6		$ 713.2

Net Income Per Share (Details)

Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Weighted average common shares outstanding - basic (in shares)	30.3	22.9	28.4	23
Shares used in diluted per share calculations (in shares)	30.5	23.1	28.6	23.2
Basic earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 10.18	$ 6.95	$ 27.12	$ 12.30
Diluted earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 10.11	$ 6.86	$ 26.91	$ 12.18
Class A common stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - basic	$ 307.9	$ 156	$ 768.4	$ 276.4
Reallocation of net income due to conversion of Class B to Class A common shares outstanding	0	0.2	0	0.5
Conversion of Class B common shares into Class A common shares	0	2.6	0.6	5.8
Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - diluted	$ 307.9	$ 158.8	$ 769	$ 282.7
Weighted average common shares outstanding - basic (in shares)	30.3	22.5	28.4	22.5
Conversion of Class B common shares into Class A common shares (in shares)	0	0.4	0	0.5
Effect of employee stock purchases and restricted stock units on weighted average common shares (in shares)	0.2	0.2	0.2	0.2
Shares used in diluted per share calculations (in shares)	30.5	23.1	28.6	23.2
Basic earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 10.18	$ 6.95	$ 27.12	$ 12.29
Diluted earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 10.11	$ 6.86	$ 26.91	$ 12.18
Class B common stock
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - basic	$ 0	$ 2.8	$ 0.6	$ 6.3
Reallocation of net income due to conversion of Class B to Class A common shares outstanding	0	0	0	0
Conversion of Class B common shares into Class A common shares	0	0	0	0
Net income attributable to Lithia Motors, Inc. and applicable to common stockholders - diluted	$ 0	$ 2.8	$ 0.6	$ 6.3
Weighted average common shares outstanding - basic (in shares)	0	0.4	0	0.5
Conversion of Class B common shares into Class A common shares (in shares)	0	0	0	0
Effect of employee stock purchases and restricted stock units on weighted average common shares (in shares)	0	0	0	0
Shares used in diluted per share calculations (in shares)	0	0.4	0	0.5
Basic earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 0	$ 6.95	$ 27.12	$ 12.29
Diluted earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 0	$ 6.86	$ 26.91	$ 12.18

Segments (Narrative) (Details)

Segments (Narrative) (Details)	9 Months Ended
	Sep. 30, 2021segment
Segment Reporting [Abstract]
Number of reportable segments	3

Segments (Schedule of Certain F

Segments (Schedule of Certain Financial Information on a Segment Basis) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Segment Reporting Information [Line Items]
Total revenues	$ 6,169.8	$ 3,620.2	$ 16,522.2	$ 9,182.5
Income before income taxes	422.2	219.1	1,053	391.6
Depreciation and amortization			(91.5)	(67.3)
Other interest expense	(28)	(16.6)	(79.6)	(50.4)
Other income (expense), net	(25.7)	2.2	(14.6)	8.2
Operating segments
Segment Reporting Information [Line Items]
Total revenues	6,141.7	3,616.1	16,493.9	9,169.9
Income before income taxes	487.5	222.9	1,158.6	397.6
Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	1,819.2	1,214.7	5,018.5	3,286.9
Income before income taxes	123.6	81.1	335.6	168.3
Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	2,727.4	1,551.7	7,149.6	3,833.5
Income before income taxes	255.4	102.6	573.2	176.2
Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	1,595.1	849.7	4,325.8	2,049.5
Income before income taxes	108.5	39.2	249.8	53.1
Corporate and other
Segment Reporting Information [Line Items]
Total revenues	28.1	4.1	28.3	12.6
Income before income taxes	22.8	33.5	80.1	103.5
Segment reconciling items
Segment Reporting Information [Line Items]
Depreciation and amortization	(34.4)	(22.9)	(91.5)	(67.3)
Other interest expense	(28)	(16.6)	(79.6)	(50.4)
Other income (expense), net	(25.7)	2.2	(14.6)	8.2
New vehicle retail
Segment Reporting Information [Line Items]
Total revenues	2,898.2	1,883.3	8,237.7	4,624.6
New vehicle retail | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	766.1	621.3	2,305.3	1,591
New vehicle retail | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	1,376.9	823.7	3,730.7	1,996.6
New vehicle retail | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	750.9	440	2,204.1	1,038.2
Used vehicle retail
Segment Reporting Information [Line Items]
Total revenues	2,079.5	1,093.2	5,236.6	2,889.7
Used vehicle retail | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	699.7	378.8	1,803.7	1,096.4
Used vehicle retail | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	847.9	452.2	2,127.8	1,152.8
Used vehicle retail | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	530.3	261.6	1,309.9	642.2
Used vehicle wholesale
Segment Reporting Information [Line Items]
Total revenues	260.9	98.8	613.5	216.8
Used vehicle wholesale | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	74.5	31.9	174.4	77.7
Used vehicle wholesale | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	99.5	42.2	247.8	88.7
Used vehicle wholesale | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	72.8	24.7	171.9	50.2
Finance and insurance
Segment Reporting Information [Line Items]
Total revenues	297	160.5	765	407.2
Finance and insurance | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	80.5	53.2	217.7	149.2
Finance and insurance | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	162.9	81.2	408.9	195.1
Finance and insurance | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	56.1	25.5	145.7	60.1
Service, body and parts
Segment Reporting Information [Line Items]
Total revenues	578.3	359.5	1,503.4	964.9
Service, body and parts | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	170.2	118	450	337.5
Service, body and parts | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	235.3	141.3	596.9	371.4
Service, body and parts | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	162.8	96	434.7	244.8
Fleet and other
Segment Reporting Information [Line Items]
Total revenues	55.9	24.9	166	79.3
Fleet and other | Operating segments | Domestic
Segment Reporting Information [Line Items]
Total revenues	28.2	11.5	67.4	35.1
Fleet and other | Operating segments | Import
Segment Reporting Information [Line Items]
Total revenues	4.9	11.1	37.5	28.9
Fleet and other | Operating segments | Luxury
Segment Reporting Information [Line Items]
Total revenues	$ 22.2	$ 1.9	$ 59.5	$ 14

Segments (Reconciliation of Ass

Segments (Reconciliation of Assets from Segment to Consolidated) (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Segment Reporting Information [Line Items]
Assets	$ 10,204.6	$ 7,902.1
Operating segments | Domestic
Segment Reporting Information [Line Items]
Assets	1,282.1	1,262.4
Operating segments | Import
Segment Reporting Information [Line Items]
Assets	1,634.8	1,654.7
Operating segments | Luxury
Segment Reporting Information [Line Items]
Assets	1,100.8	1,132.4
Corporate and other
Segment Reporting Information [Line Items]
Assets	$ 6,186.9	$ 3,852.6

Leases (Details)

Leases (Details)	Sep. 30, 2021option
Lessor, Lease, Description [Line Items]
Lease renewal option	1
Minimum
Lessor, Lease, Description [Line Items]
Lease renewal term	1 year
Maximum
Lessor, Lease, Description [Line Items]
Lease renewal term	23 years

Derivative Financial Instrume_3

Derivative Financial Instruments - Narrative (Details) $ in Millions	Jun. 15, 2021USD ($)derivative	Oct. 02, 2020USD ($)derivative	Jun. 01, 2019USD ($)	Sep. 30, 2021USD ($)derivative	Dec. 31, 2020USD ($)
Derivative [Line Items]
Non-trade floor plan notes payable				$ 688.9	$ 1,563
Amount of net losses expected to reclassify from AOCI into interest expense in earnings within the next twelve months				$ 2.7
Interest Rate Cap | Not Designated as Hedging Instrument
Derivative [Line Items]
Number of derivative instruments entered during period | derivative	2	2
Number of derivative instruments held | derivative				4
Interest Rate Contract
Derivative [Line Items]
Agreement term			5 years
Aggregate notional amount			$ 300
Non-trade floor plan notes payable			$ 688.2
Interest Rate Contract | Not Designated as Hedging Instrument
Derivative [Line Items]
Agreement term	5 years	5 years
Aggregate notional amount	$ 100	$ 100
Derivative liability				$ 4.2
Derivative asset				$ 4.2

Derivative Financial Instrume_4

Derivative Financial Instruments - Liabilities Related to Zero-Cost Interest Rate Collar (Details) - USD ($) $ in Millions	3 Months Ended
	Sep. 30, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Sep. 30, 2020	Jun. 30, 2020	Mar. 31, 2020
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	$ 4,228.4		$ 2,661.5	$ 1,694.4	$ 1,532.2		$ 1,467.7
Ending Balance	4,544.6	$ 4,228.4		2,661.5	1,694.4	$ 1,532.2
Interest Rate Contract | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(5.9)	(6.1)	(8.6)	(9.2)	(9.8)	(7.9)	(1)
Amounts reclassified from AOCI to floorplan interest expense	0.7	0.7	0.7	0.7	0.7	0.4
(Loss) gain recorded from interest rate collar	0	(0.5)	1.8	(0.1)	(0.1)	(2.3)	(6.9)
Ending Balance	(5.2)	(5.9)	(6.1)	(8.6)	(9.2)	(9.8)	(7.9)
Interest Rate Contract | Accrued Liabilities | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(2.5)	(2.5)	(2.6)	(2.5)	(2.5)	(1.9)	(0.1)
Amounts reclassified from AOCI to floorplan interest expense	0.7	0.7	0.7	0.7	0.7	0.4
(Loss) gain recorded from interest rate collar	(0.7)	(0.7)	(0.6)	(0.8)	(0.7)	(1)	(1.8)
Ending Balance	(2.5)	(2.5)	(2.5)	(2.6)	(2.5)	(2.5)	(1.9)
Interest Rate Contract | Other Long-Term Liabilities | Accumulated Gain (Loss), Cash Flow Hedge, Including Noncontrolling Interest
AOCI Including Portion Attributable to Noncontrolling Interest, Net of Tax [Roll Forward]
Beginning Balance	(3.4)	(3.6)	(6)	(6.7)	(7.3)	(6)	(0.9)
Amounts reclassified from AOCI to floorplan interest expense	0	0	0	0	0	0
(Loss) gain recorded from interest rate collar	0.7	0.2	2.4	0.7	0.6	(1.3)	(5.1)
Ending Balance	$ (2.7)	$ (3.4)	$ (3.6)	$ (6)	$ (6.7)	$ (7.3)	$ (6)

Acquisitions (Revenue and Opera

Acquisitions (Revenue and Operating Income from Acquisitions) (Details) $ in Millions	9 Months Ended
	Sep. 30, 2021USD ($)
Business Combination and Asset Acquisition [Abstract]
Revenue	$ 2,385.9
Operating income	$ 121.9

Acquisitions (Summary of Acquis

Acquisitions (Summary of Acquisitions) (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020
Business Acquisition [Line Items]
Cash paid, net of cash acquired	$ 2,409.5	$ 609.5
2021 Acquisitions
Business Acquisition [Line Items]
Cash paid, net of cash acquired	2,376.4
Debt issued	355.4
Preliminary fair value of redeemable non-controlling interest	33
Total consideration transferred	$ 2,764.8

Acquisitions (Assets Acquired a

Acquisitions (Assets Acquired and Liabilities Assumed) (Details) - 2021 Acquisitions $ in Millions	Sep. 30, 2021USD ($)
Business Acquisition [Line Items]
Accounts receivable	$ 1.1
Inventories, net	565.6
Property and equipment, net	112.6
Other non-current assets	2,117.4
Floor plan notes payable	(3.9)
Other long-term liabilities	(28)
Assets acquired and liabilities assumed	$ 2,764.8

Acquisitions (Narrative) (Detai

Acquisitions (Narrative) (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Business Combination and Asset Acquisition [Abstract]
Acquisition-related expenses	$ 6.3	$ 0.6	$ 17.9	$ 1.6

Acquisitions (Pro Forma Summary

Acquisitions (Pro Forma Summary of All Acquisitions) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2021	Sep. 30, 2020	Sep. 30, 2021	Sep. 30, 2020
Business Combination and Asset Acquisition [Abstract]
Revenue	$ 6,483.3	$ 5,840.4	$ 18,699.8	$ 15,455.9
Net income attributable to Lithia Motors, Inc.	$ 317.8	$ 216.9	$ 825.4	$ 400.5
Basic earnings attributable to Lithia Motors, Inc. per share (in dollars per share)	$ 10.50	$ 9.49	$ 29.10	$ 17.43
Diluted earnings attributable to Lithia Motors, Inc. per share (in dollars per share)	$ 10.44	$ 9.37	$ 28.88	$ 17.26

Net Investment In Operating L_3

Net Investment In Operating Leases (Details) - USD ($) $ in Millions	Sep. 30, 2021	Dec. 31, 2020
Investments, Debt and Equity Securities [Abstract]
Vehicles, at cost	$ 53.1	$ 0
Accumulated depreciation	(1.1)	0
Net investment in operating leases	$ 52	$ 0