Lithia Motors (LAD) 10-Q 27 Oct 23 2023 Q3 Quarterly report Financial data

Cover

Cover - shares	9 Months Ended
	Sep. 30, 2023	Oct. 27, 2023
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
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		27,519,538
Entity Central Index Key	0001023128
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2023
Document Fiscal Period Focus	Q3
Amendment Flag	false

CONSOLIDATED BALANCE SHEETS

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Current assets:
Cash and restricted cash	$ 256.2	$ 246.7
Accounts receivable, net of allowance for doubtful accounts of $4.5 and $3.1	999.3	813.1
Inventories, net	4,404.5	3,409.4
Other current assets	158.2	161.7
Total current assets	5,818.2	4,630.9
Property and equipment, net of accumulated depreciation of $687.9 and $526.8	3,947.7	3,574.6
Operating lease right-of-use assets	472.4	381.9
Finance receivables, net of allowance for estimated losses of $103.0 and $69.3	3,102.1	2,187.6
Goodwill	1,725.6	1,460.7
Franchise value	2,147.7	1,856.2
Other non-current assets	1,056.1	914.7
Total assets	18,269.8	15,006.6
Current liabilities:
Floor plan notes payable	1,261.2	627.2
Floor plan notes payable: non-trade	1,863.4	1,489.4
Trade payables	307.3	258.4
Accrued liabilities	872.2	782.7
Total current liabilities	4,375.3	3,178.2
Deferred revenue	248.1	226.7
Deferred income taxes	323.6	286.3
Non-current operating lease liabilities	424	346.6
Other long-term liabilities	243.3	207.2
Total liabilities	12,203	9,755.5
Redeemable non-controlling interest	44.3	40.7
Equity:
Preferred stock - no par value; authorized 15.0 shares; none outstanding	0	0
Common stock - no par value; authorized 125.0 shares; issued and outstanding 27.6 and 27.3	1,126.5	1,082.1
Additional paid-in capital	71.1	76.8
Accumulated other comprehensive loss	(14.7)	(18)
Retained earnings	4,813.5	4,065.3
Total stockholders’ equity - Lithia Motors, Inc.	5,996.4	5,206.2
Non-controlling interest	26.1	4.2
Total equity	6,022.5	5,210.4
Total liabilities, redeemable non-controlling interest and equity	18,269.8	15,006.6
Long-term debt
Current liabilities:
Current maturities of long-term debt	37.2	20.5
Long-term debt, less current maturities	5,152.8	5,088.3
Non-recourse notes payable
Current liabilities:
Current maturities of long-term debt	34	0
Long-term debt, less current maturities	$ 1,435.9	$ 422.2

CONSOLIDATED BALANCE SHEETS (Pa

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Millions, $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Statement of Financial Position [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 4.5	$ 3.1
Property and equipment, accumulated depreciation	687.9	526.8
Finance receivables, allowance for estimated losses	$ 103	$ 69.3
Preferred stock, authorized (in shares)	15	15
Preferred stock, outstanding (in shares)	0	0
Common stock, authorized (in shares)	125	125
Common stock, issued (in shares)	27.6	27.3
Common stock, outstanding (in shares)	27.6	27.3

CONSOLIDATED STATEMENTS OF OPER

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Revenues:
Total revenues	$ 8,277	$ 7,295.7	$ 23,368	$ 21,241.3
Cost of sales:
Total cost of sales	6,905.7	5,981.5	19,399.8	17,298
Gross profit	1,371.3	1,314.2	3,968.2	3,943.3
Financing operations (loss) income	(4.4)	(4.6)	(43.8)	3.7
Selling, general and administrative	850.8	754.2	2,458.1	2,291.3
Depreciation and amortization	50.8	40.5	146.4	115
Operating income	465.3	514.9	1,319.9	1,540.7
Floor plan interest expense	(40.2)	(10.7)	(102.6)	(19.4)
Other interest expense, net	(58.5)	(36.3)	(141.5)	(90.8)
Other income (expense), net	(5.3)	(12.2)	6.8	(36.6)
Income before income taxes	361.3	455.7	1,082.6	1,393.9
Income tax provision	(96.4)	(125.4)	(287)	(382.1)
Net income	264.9	330.3	795.6	1,011.8
Net (income) loss attributable to non-controlling interest	(2.1)	0.5	(4.7)	(3.9)
Net income attributable to redeemable non-controlling interest	(1.3)	(1.2)	(3.6)	(4.5)
Net income attributable to Lithia Motors, Inc.	$ 261.5	$ 329.6	$ 787.3	$ 1,003.4
Basic earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 9.49	$ 11.97	$ 28.60	$ 35.23
Shares used in basic per share calculations (in shares)	27.6	27.5	27.5	28.5
Diluted earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 9.46	$ 11.92	$ 28.54	$ 35.10
Shares used in diluted per share calculations (in shares)	27.6	27.6	27.6	28.6
Cash dividends paid per share (in dollars per share)	$ 0.50	$ 0.42	$ 1.42	$ 1.19
New vehicle retail
Revenues:
Total revenues	$ 3,885.8	$ 3,306.9	$ 11,179.5	$ 9,619.4
Cost of sales:
Total cost of sales	3,526.9	2,903.2	10,099.6	8,403.9
Used vehicle retail
Revenues:
Total revenues	2,620.2	2,465.8	7,302.8	7,197
Cost of sales:
Total cost of sales	2,431.2	2,264.5	6,735.4	6,533.6
Used vehicle wholesale
Revenues:
Total revenues	316.1	363.2	1,082.4	1,131.5
Cost of sales:
Total cost of sales	322.1	374.8	1,091.9	1,131.5
Finance and insurance
Revenues:
Total revenues	349.4	333.3	1,005.6	977
Service, body and parts
Revenues:
Total revenues	838	712.2	2,378.8	2,022.6
Cost of sales:
Total cost of sales	375.2	328	1,077.7	945.9
Fleet and other
Revenues:
Total revenues	267.5	114.3	418.9	293.8
Cost of sales:
Total cost of sales	$ 250.3	$ 111	$ 395.2	$ 283.1

CONSOLIDATED STATEMENTS OF COMP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 264.9	$ 330.3	$ 795.6	$ 1,011.8
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment	(25.9)	(16.4)	3.3	(20.3)
Gain on cash flow hedges, net of tax expense of none, none, none, and $(0.7), respectively	0	0	0	1.8
Total other comprehensive income (loss), net of tax	(25.9)	(16.4)	3.3	(18.5)
Comprehensive income	239	313.9	798.9	993.3
Comprehensive (income) loss attributable to non-controlling interest	(2.1)	0.5	(4.7)	(3.9)
Comprehensive income attributable to redeemable non-controlling interest	(1.3)	(1.2)	(3.6)	(4.5)
Comprehensive income attributable to Lithia Motors, Inc.	$ 235.6	$ 313.2	$ 790.6	$ 984.9

CONSOLIDATED STATEMENTS OF CO_2

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Comprehensive Income [Abstract]
(Loss) gain on cash flow hedges, tax benefit (expense)	$ 0	$ 0	$ 0	$ (0.7)

CONSOLIDATED STATEMENTS OF EQUI

CONSOLIDATED STATEMENTS OF EQUITY AND REDEEMABLE NON-CONTROLLING INTEREST - USD ($) $ in Millions	Total	Common stock	Additional paid-in capital	Accumulated other comprehensive (loss) income	Retained earnings	Noncontrolling interest
Beginning balance at Dec. 31, 2021	$ 4,629.2	$ 1,711.6	$ 58.3	$ (3)	$ 2,859.5	$ 2.8
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		21	10.7
Issuance of stock in connection with employee stock purchase plans		28.1
Repurchase of common stock		(653.6)
Foreign currency translation adjustment	(20.3)			(20.3)
Gain on cash flow hedges, net of tax expense of none, none, none, and $(0.7), respectively	1.8			1.8
Contribution (distribution) of non-controlling interest						(2.7)
Net income (loss)	1,011.8				1,003.4	3.9
Dividends paid					(33.8)
Ending balance at Sep. 30, 2022	4,987.7	1,107.1	69	(21.5)	3,829.1	4
Redeemable non-controlling interest, beginning balances at Dec. 31, 2021	34
Increase (Decrease) in Temporary Equity [Roll Forward]
Contribution (distribution) of redeemable non-controlling interest	2
Net income attributable to redeemable non-controlling interest	4.5
Redeemable non-controlling interest, ending balances at Sep. 30, 2022	40.5
Beginning balance at Jun. 30, 2022	4,698	1,123.9	62.2	(5.1)	3,510.8	6.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		1.9	6.8
Issuance of stock in connection with employee stock purchase plans		9.4
Repurchase of common stock		(28.1)
Foreign currency translation adjustment	(16.4)			(16.4)
Gain on cash flow hedges, net of tax expense of none, none, none, and $(0.7), respectively	0			0
Contribution (distribution) of non-controlling interest						(1.6)
Net income (loss)	330.3				329.6	(0.5)
Dividends paid					(11.3)
Ending balance at Sep. 30, 2022	4,987.7	1,107.1	69	(21.5)	3,829.1	4
Redeemable non-controlling interest, beginning balances at Jun. 30, 2022	39.8
Increase (Decrease) in Temporary Equity [Roll Forward]
Contribution (distribution) of redeemable non-controlling interest	(0.5)
Net income attributable to redeemable non-controlling interest	1.2
Redeemable non-controlling interest, ending balances at Sep. 30, 2022	40.5
Beginning balance at Dec. 31, 2022	5,210.4	1,082.1	76.8	(18)	4,065.3	4.2
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		36.1	(5.7)
Issuance of stock in connection with employee stock purchase plans		22.8
Repurchase of common stock		(14.5)
Foreign currency translation adjustment	3.3			3.3
Gain on cash flow hedges, net of tax expense of none, none, none, and $(0.7), respectively	0			0
Contribution (distribution) of non-controlling interest						17.2
Net income (loss)	795.6				787.3	4.7
Dividends paid					(39.1)
Ending balance at Sep. 30, 2023	6,022.5	1,126.5	71.1	(14.7)	4,813.5	26.1
Redeemable non-controlling interest, beginning balances at Dec. 31, 2022	40.7
Increase (Decrease) in Temporary Equity [Roll Forward]
Contribution (distribution) of redeemable non-controlling interest	0
Net income attributable to redeemable non-controlling interest	3.6
Redeemable non-controlling interest, ending balances at Sep. 30, 2023	44.3
Beginning balance at Jun. 30, 2023	5,759.7	1,116.1	62.5	11.2	4,565.8	4.1
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Stock-based compensation		2.5	8.6
Issuance of stock in connection with employee stock purchase plans		7.9
Repurchase of common stock		0
Foreign currency translation adjustment	(25.9)			(25.9)
Gain on cash flow hedges, net of tax expense of none, none, none, and $(0.7), respectively	0			0
Contribution (distribution) of non-controlling interest						19.9
Net income (loss)	264.9				261.5	2.1
Dividends paid					(13.8)
Ending balance at Sep. 30, 2023	6,022.5	$ 1,126.5	$ 71.1	$ (14.7)	$ 4,813.5	$ 26.1
Redeemable non-controlling interest, beginning balances at Jun. 30, 2023	43
Increase (Decrease) in Temporary Equity [Roll Forward]
Contribution (distribution) of redeemable non-controlling interest	0
Net income attributable to redeemable non-controlling interest	1.3
Redeemable non-controlling interest, ending balances at Sep. 30, 2023	$ 44.3

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, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Statement of Stockholders' Equity [Abstract]
(Loss) gain on cash flow hedges, tax benefit (expense)	$ 0	$ 0	$ 0	$ (0.7)

CONSOLIDATED STATEMENTS OF CASH

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Cash flows from operating activities:
Net income	$ 795.6	$ 1,011.8
Adjustments to reconcile net income to net cash used in operating activities:
Depreciation and amortization	154.9	122.1
Stock-based compensation	30.4	31.7
Loss (gain) on disposal of other assets	0.1	(0.4)
Gain on disposal of franchise	(31.4)	(49.6)
Unrealized investment (gain) loss	(0.1)	32.6
Deferred income taxes	47.2	63.5
Amortization of operating lease right-of-use assets	49.1	37.6
(Increase) decrease (net of acquisitions and dispositions):
Accounts receivable, net	(110.6)	(54)
Inventories	(498.2)	(852.4)
Finance receivables	(907)	(946.7)
Other assets	5.8	(85.8)
Increase (decrease) (net of acquisitions and dispositions):
Floor plan notes payable	292	101.1
Trade payables	(34.1)	9.3
Accrued liabilities	9.7	19.1
Other long-term liabilities and deferred revenue	19.4	42.6
Net cash used in operating activities	(177.2)	(517.5)
Cash flows from investing activities:
Capital expenditures	(163.7)	(209.8)
Proceeds from sales of assets	3.1	16.4
Cash paid for other investments	(11.1)	(9.3)
Cash paid for acquisitions, net of cash acquired	(1,204.7)	(962.6)
Proceeds from sales of stores	136.1	148
Net cash used in investing activities	(1,240.3)	(1,017.3)
Cash flows from financing activities:
Borrowings on floor plan notes payable, net: non-trade	426.7	429.6
Borrowings on lines of credit	9,625.1	9,178.4
Repayments on lines of credit	(9,681)	(7,430)
Principal payments on long-term debt and finance lease liabilities, scheduled	(26.2)	(42.4)
Principal payments on long-term debt and finance lease liabilities, other	(3.4)	(70)
Proceeds from issuance of long-term debt	79.8	39.6
Principal payments on non-recourse notes payable	(404)	(138.7)
Proceeds from issuance of non-recourse notes payable	1,451.7	298.2
Payment of debt issuance costs	(14.3)	(4.7)
Proceeds from issuance of common stock	23	28.1
Repurchase of common stock	(14.5)	(644.4)
Dividends paid	(39.1)	(33.8)
Payment of contingent consideration related to acquisitions	(14)	(7.2)
Other financing activity	17.2	(2.7)
Net cash provided by financing activities	1,427	1,600
Effect of exchange rate changes on cash and restricted cash	5.7	(3.3)
Increase in cash and restricted cash	15.2	61.9
Cash and restricted cash at beginning of year	271.5	178.4
Cash and restricted cash at end of period	286.7	240.3
Reconciliation of cash and restricted cash to the consolidated balance sheets
Cash	146.9	172.7
Restricted cash from collections on auto loans receivable and customer deposits	109.3	60.3
Cash and restricted cash	256.2	233
Restricted cash on deposit in reserve accounts, included in other non-current assets	30.5	7.3
Total cash and restricted cash reported in the Consolidated Statements of Cash Flows	286.7	240.3
Supplemental cash flow information:
Cash paid during the period for interest	359.3	122.2
Cash paid during the period for income taxes, net	203.5	380
Debt paid in connection with store disposals	13.2	23.6
Non-cash activities:
Contingent consideration in connection with acquisitions	7.3	21.7
Debt assumed in connection with acquisitions	401.6	0.7
Acquisition of finance leases in connection with acquisitions	45	78.2
Right-of-use assets obtained in exchange for lease liabilities	139.1	22.3
Unsettled repurchases of common stock	$ 0	$ 9.2

INTERIM FINANCIAL STATEMENTS

INTERIM FINANCIAL STATEMENTS	9 Months Ended
	Sep. 30, 2023
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, 2023, and for the three and nine months ended September 30, 2023 and 2022. 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 2022 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2022, is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2023. 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 reclassifications of amounts previously reported have been made to the accompanying Consolidated Financial Statements to maintain consistency and comparability between periods presented. We reclassified certain components within our Consolidated Statements of Cash Flows to present activity associated with Finance Receivables and Non-Recourse Notes Payable. We also reclassified components of our Consolidated Statements of Operations to present Finance Operations Income, and to change our presentation of segment reporting.

ACCOUNTS RECEIVABLE

ACCOUNTS RECEIVABLE	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
ACCOUNTS RECEIVABLE	ACCOUNTS RECEIVABLE Accounts receivable consisted of the following: (in millions) September 30, 2023 December 31, 2022 Contracts in transit $ 458.8 $ 432.5 Trade receivables 156.3 122.6 Vehicle receivables 170.3 105.4 Manufacturer receivables 207.8 151.9 Other receivables, current 10.6 3.8 1,003.8 816.2 Less: Allowance for doubtful accounts (4.5) (3.1) Total accounts receivable, net $ 999.3 $ 813.1 The long-term portions of accounts receivable and allowance for doubtful accounts were included as a component of other non-current assets in the Consolidated Balance Sheets.

INVENTORIES AND FLOOR PLAN NOTE

INVENTORIES AND FLOOR PLAN NOTES PAYABLE	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
INVENTORIES AND FLOOR PLAN NOTES PAYABLE	INVENTORIES AND FLOOR PLAN NOTES PAYABLE The components of inventories, net, consisted of the following: (in millions) September 30, 2023 December 31, 2022 New vehicles $ 2,457.3 $ 1,679.8 Used vehicles 1,724.2 1,529.3 Parts and accessories 223.0 200.3 Total inventories $ 4,404.5 $ 3,409.4 The new vehicle inventory cost is generally reduced by manufacturer holdbacks and incentives, while the related floor plan notes payable are reflective of the gross cost of the vehicle. (in millions) September 30, 2023 December 31, 2022 Floor plan notes payable: non-trade $ 1,863.4 $ 1,489.4 Floor plan notes payable 1,261.2 627.2 Total floor plan debt $ 3,124.6 $ 2,116.6

FINANCE RECEIVABLES

FINANCE RECEIVABLES	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
FINANCE RECEIVABLES	FINANCE RECEIVABLES Interest income on finance 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. The balances of finance receivables are made up of loans and leases secured by the related vehicles. More than 99% of the portfolio is aged less than 60 days past due with less than 1% on non-accrual status. Finance Receivables, net (in millions) September 30, 2023 December 31, 2022 Asset-backed term funding $ 1,840.2 $ 482.1 Warehouse facilities 861.5 1,383.9 Other managed receivables 503.4 390.9 Total finance receivables 3,205.1 2,256.9 Less: Allowance for finance receivable losses (103.0) (69.3) Finance receivables, net $ 3,102.1 $ 2,187.6 Finance Receivables by FICO Score As of September 30, 2023 Year of Origination ($ in millions) 2023 2022 2021 2020 Total <599 $ 53.4 $ 45.3 $ 20.4 $ 3.0 $ 122.1 600-699 491.0 508.2 171.8 18.3 1,189.3 700-774 472.6 459.7 71.3 6.6 1,010.2 775+ 404.3 285.9 16.2 3.1 709.5 Total auto loan receivables $ 1,421.3 $ 1,299.1 $ 279.7 $ 31.0 3,031.1 Other finance receivables 1 174.0 Total finance receivables $ 3,205.1 As of December 31, 2022 Year of Origination ($ in millions) 2022 2021 2020 Total <599 $ 63.0 $ 30.3 $ 4.8 $ 98.1 600-699 652.6 243.4 27.2 923.2 700-774 575.9 97.9 10.0 683.8 775+ 369.5 21.5 4.5 395.5 Total auto loan receivables $ 1,661.0 $ 393.1 46.5 2,100.6 Other finance receivables 1 156.3 Total finance receivables $ 2,256.9 1 Includes legacy portfolio, loans that are originated with no FICO score available, and lease receivables. 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. Consideration is given to recent delinquency trends and recovery rates. Account balances are charged against the allowance upon reaching 120 days past due status. Rollforward of Allowance for Loan and Lease Losses Our allowance for loan and lease losses represents the net credit losses expected over the remaining contractual life of our managed receivables. The allowances for credit losses related to finance receivables consisted of the following changes during the period: Nine Months Ended September 30, (in millions) 2023 2022 Allowance at beginning of period $ 69.3 $ 25.0 Charge-offs (79.1) (36.3) Recoveries 35.5 12.2 Initial allowance for purchased credit-deteriorated loans 2.3 — Provision expense 75.0 51.5 Allowance at end of period $ 103.0 $ 52.4 Charge-off Activity by Year of Origination Nine Months Ended September 30, (in millions) 2023 2022 2023 $ 5.0 $ — 2022 47.1 5.7 2021 23.0 24.1 2020 2.3 3.5 Other finance receivables 1 1.7 3.0 Total charge-offs $ 79.1 $ 36.3 1 Includes legacy portfolio, loans that are originated with no FICO score available, and lease receivables. Purchased Financial Assets with Credit Deterioration As part of our acquisition of Priority Auto Group on June 12, 2023, we purchased certain auto loan receivables for which there was evidence of more than insignificant deterioration of credit quality since origination (purchased credit-deteriorated or “PCD” assets). The following is a reconciliation of the difference between the purchase price paid by us for the financial assets and the par value (outstanding principal balance) of the assets on the date we acquired the portfolio: Purchase price of PCD loans at acquisition $ 8.0 Initial allowance for credit losses of PCD loans at acquisition 2.3 Noncredit premium of PCD loans at acquisition (1.2) Par value of acquired PCD loans at acquisition $ 9.1

GOODWILL AND FRANCHISE VALUE

GOODWILL AND FRANCHISE VALUE	9 Months Ended
	Sep. 30, 2023
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) Vehicle Operations Financing Operations Consolidated Balance as of December 31, 2021 $ 977.3 $ — $ 977.3 Additions through acquisitions 1 483.4 17.0 500.4 Reductions through divestitures (17.9) — (17.9) Currency translation 0.7 0.2 0.9 Balance as of December 31, 2022 1,443.5 17.2 1,460.7 Additions through acquisitions 2 315.0 — 315.0 Reductions through divestitures (49.9) — (49.9) Currency translation (0.2) — (0.2) Balance as of September 30, 2023 $ 1,708.4 $ 17.2 $ 1,725.6 1 Our purchase price allocation for the 2021 acquisitions were finalized in 2022. As a result, we added $500.4 million of goodwill. 2 Our purchase price allocation for a portion of the 2022 acquisitions were finalized in 2023. As a result, we added $315.0 million of goodwill. Our purchase price allocation for the remaining 2022 and 2023 acquisitions are preliminary and goodwill is not yet allocated to our segments. These amounts are included in other non-current assets until we finalize our purchase accounting. See Note 11 – Acquisitions. The changes in the carrying amounts of franchise value are as follows: (in millions) Franchise Value Balance as of December 31, 2021 $ 799.1 Additions through acquisitions 1 1,088.4 Reductions through divestitures (33.6) Currency translation 2.3 Balance as of December 31, 2022 1,856.2 Additions through acquisitions 2 305.8 Reductions through divestitures (13.8) Currency translation (0.5) Balance as of September 30, 2023 $ 2,147.7 1 Our purchase price allocation for the 2021 acquisitions were finalized in 2022. As a result, we added $1.1 billion of franchise value. 2 Our purchase price allocations for a portion of the 2022 acquisitions were finalized in 2023. As a result, we added $305.8 million of franchise value. Our purchase price allocation for the remaining 2022 and 2023 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 11 – Acquisitions.

NET INVESTMENT IN OPERATING LEA

NET INVESTMENT IN OPERATING LEASES	9 Months Ended
	Sep. 30, 2023
Investments, Debt and Equity Securities [Abstract]
NET INVESTMENT IN OPERATING LEASES	NET INVESTMENT IN OPERATING LEASES 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, 2023 December 31, 2022 Vehicles, at cost 1 $ 99.7 $ 92.2 Accumulated depreciation 1 (10.2) (7.6) Net investment in operating leases $ 89.5 $ 84.6 1 Vehicles, at cost and accumulated depreciation are recorded in other current assets on the Consolidated Balance Sheets.

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES	9 Months Ended
	Sep. 30, 2023
Commitments and Contingencies Disclosure [Abstract]
COMMITMENTS AND CONTINGENCIES	COMMITMENTS AND CONTINGENCIES 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 $309.9 million and $284.3 million as of September 30, 2023, and December 31, 2022, respectively; and we recognized $13.2 million and $42.2 million of revenue in the three and nine months ended September 30, 2023 related to our contract liability balance at December 31, 2022. Our contract liability balance is included in accrued liabilities and deferred revenue. 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. We rent or sublease certain real estate to third parties. Litigation We are party to numerous legal proceedings arising in the normal course of our business. Although we do not anticipate that the resolution of legal proceedings arising in the normal course of business will have a material adverse effect on our business, results of operations, financial condition, or cash flows, we cannot predict this with certainty.

DEBT

DEBT	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
DEBT	DEBT Credit Facilities US Bank Syndicated Credit Facility On February 9, 2023, we amended our existing syndicated credit facility (USB credit facility), comprised of 20 financial institutions, including eight manufacturer-affiliated finance companies, maturing April 29, 2026. This USB credit facility provides for a total financing commitment of $4.5 billion, which may be further expanded, subject to lender approval and the satisfaction of other conditions, up to a total of $5.5 billion. The allocation of the financing commitment is for up to $1.95 billion in new vehicle inventory floorplan financing, up to $800 million in used vehicle inventory floorplan financing, up to $50 million in service loaner vehicle floorplan financing, and up to $1.70 billion in revolving financing for general corporate purposes, including acquisitions and working capital. We have the option to reallocate the commitments under this USB credit facility, provided that the aggregate revolving loan commitment may not be more than 40% of the amount of the aggregate commitment, and the aggregate service loaner vehicle floorplan commitment may not be more than the 3% of the amount of the aggregate commitment. All borrowings from, and repayments to, our lending group are presented in the Consolidated Statements of Cash Flows as financing activities. Our obligations under our USB credit facility are secured by a substantial amount of our assets, including our inventory (including new and used vehicles, parts and accessories), equipment, accounts receivable (and other rights to payment) and our equity interests in certain of our subsidiaries. Under our USB credit facility, our obligations relating to new vehicle floor plan loans are secured only by collateral owned by Lithia and its dealerships borrowing under the new vehicle floor plan portion of the USB credit facility. The interest rate on the USB credit facility varies based on the type of debt, with the rate of one-day SOFR plus a credit spread adjustment of 0.10% plus a margin of 1.10% for new vehicle floor plan financing, 1.40% for used vehicle floor plan financing, 1.20% for service loaner floor plan financing, and a variable interest rate on the revolving financing ranging from 1.00% to 2.00% depending on our leverage ratio. The annual interest rates associated with our floor plan commitments are as follows: Commitment Annual Interest Rate at September 30, 2023 New vehicle floor plan 6.51% Used vehicle floor plan 6.81% Service loaner floor plan 6.61% Revolving line of credit 6.41% JPM Warehouse Facility On July 20, 2023, we amended our securitization facility for our auto loan portfolio (JPM warehouse facility) with JPMorgan Chase Bank, as administrative agent and account bank, providing initial commitments for borrowings of up to $1.0 billion. The JPM warehouse facility matures on July 18, 2025. The interest rate on the JPM warehouse facility varies based on the Daily Simple SOFR rate plus 1.15% to 1.95%. As of September 30, 2023, we had $375.0 million drawn on the JPM warehouse facility. Mizuho Warehouse Facility On July 20, 2023, we amended our securitization facility for our auto loan portfolio (Mizuho warehouse facility), with Mizuho Bank Ltd. as administrative agent and account bank, providing initial commitments for borrowings of up to $750 million. The Mizuho warehouse facility matures on July 20, 2026. The interest rate on the Mizuho warehouse facility varies based on the Daily Simple SOFR rate plus 1.20%. As of September 30, 2023, we had $210 million drawn on the Mizuho warehouse facility. Non-Recourse Notes Payable In 2023, we issued approximately $1.5 billion in non-recourse notes payable related to asset-backed term funding transactions. Below is a summary of outstanding non-recourse notes payable issued: ($ in millions) Balance as of September 30, 2023 Initial Principal Amount Issuance Date Interest Rate Final Distribution Date LAD Auto Receivables Trust 2021-1 Class A 52.6 $ 282.8 11/24/21 1.300% 08/17/26 LAD Auto Receivables Trust 2021-1 Class B 18.3 18.3 11/24/21 1.940% 11/16/26 LAD Auto Receivables Trust 2021-1 Class C 26.0 26.0 11/24/21 2.350% 04/15/27 LAD Auto Receivables Trust 2021-1 Class D 17.2 17.2 11/24/21 3.990% 11/15/29 LAD Auto Receivables Trust 2022-1 Class A 132.7 259.7 08/17/22 5.210% 06/15/27 LAD Auto Receivables Trust 2022-1 Class B 15.5 15.5 08/17/22 5.870% 09/15/27 LAD Auto Receivables Trust 2022-1 Class C 23.0 23.0 08/17/22 6.850% 04/15/30 LAD Auto Receivables Trust 2023-1 Class A-1 — 75.1 02/14/23 4.929% 02/15/24 LAD Auto Receivables Trust 2023-1 Class A-2 191.4 242.0 02/14/23 5.680% 10/15/26 LAD Auto Receivables Trust 2023-1 Class A-3 74.4 74.4 02/14/23 5.480% 06/15/27 LAD Auto Receivables Trust 2023-1 Class B 20.1 20.1 02/14/23 5.590% 08/16/27 LAD Auto Receivables Trust 2023-1 Class C 36.7 36.7 02/14/23 6.180% 12/15/27 LAD Auto Receivables Trust 2023-1 Class D 31.3 31.3 02/14/23 7.300% 06/17/30 LAD Auto Receivables Trust 2023-2 Class A-1 — 87.4 05/24/23 5.440% 05/15/24 LAD Auto Receivables Trust 2023-2 Class A-2 262.2 287.0 05/24/23 5.930% 06/15/27 LAD Auto Receivables Trust 2023-2 Class A-3 80.0 80.0 05/24/23 5.420% 02/15/28 LAD Auto Receivables Trust 2023-2 Class B 22.9 22.9 05/24/23 5.450% 04/15/28 LAD Auto Receivables Trust 2023-2 Class C 54.7 54.7 05/24/23 5.580% 09/15/28 LAD Auto Receivables Trust 2023-2 Class D 24.8 24.8 05/24/23 6.300% 02/15/31 LAD Auto Receivables Trust 2023-3 Class A-1 34.0 63.2 08/23/23 5.632% 08/15/24 LAD Auto Receivables Trust 2023-3 Class A-2 127.8 127.8 08/23/23 6.090% 06/15/26 LAD Auto Receivables Trust 2023-3 Class A-3 100.0 100.0 08/23/23 6.120% 09/15/27 LAD Auto Receivables Trust 2023-3 Class A-4 45.0 45.0 08/23/23 5.950% 03/15/28 LAD Auto Receivables Trust 2023-3 Class B 22.6 22.6 08/23/23 6.090% 06/15/28 LAD Auto Receivables Trust 2023-3 Class C 39.9 39.9 08/23/23 6.430% 12/15/28 LAD Auto Receivables Trust 2023-3 Class D 16.8 16.8 08/23/23 6.920% 12/16/30 Total non-recourse notes payable $ 1,469.9 $ 2,094.2

EQUITY AND REDEEMABLE NON-CONTR

EQUITY AND REDEEMABLE NON-CONTROLLING INTERESTS	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
EQUITY AND REDEEMABLE NON-CONTROLLING INTERESTS	EQUITY AND REDEEMABLE NON-CONTROLLING INTERESTS 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). Share repurchases under our authorization were as follows: Repurchases Occurring in 2023 Cumulative Repurchases as of September 30, 2023 Shares Average Price Shares Average Price Share Repurchase Authorization — $ — 6,904,781 $ 173.59 As of September 30, 2023, we had $501.4 million available for repurchases pursuant to our share repurchase authorization from our Board of Directors in 2022 and prior years. In addition, during 2023, we repurchased 70,626 shares at an average price of $204.92 per share, for a total of $14.5 million, related to tax withholding associated with the vesting of RSUs. The repurchase of shares related to

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS	9 Months Ended
	Sep. 30, 2023
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 the carrying value of accounts receivable, trade payables, accrued liabilities, finance receivables, 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 asset (Level 1) and recorded the fair value as part of other non-current assets. For the three and nine-month periods ended September 30, 2023, we recognized a $0.7 million and $0.1 million unrealized investment loss and gain related to Shift, respectively. For the three and nine-month periods ended September 30, 2022, we recognized a $0.3 million and $32.6 million unrealized investment gain and loss related to Shift, respectively. These amounts were recorded as a component of Other income (expense), net. We have fixed rate debt primarily consisting of amounts outstanding under our senior notes, non-recourse notes payable, and real estate mortgages. We calculated the estimated fair value of the senior notes using quoted prices for the identical liability (Level 1). The fair value of non-recourse notes payable are measured using observable Level 2 market expectations at each measurement date. The calculated estimated fair values of the fixed rate real estate mortgages and finance lease liabilities use 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. We have derivative instruments consisting of an offsetting set of interest rate caps. The fair value of derivative assets and liabilities are measured using observable Level 2 market expectations at each measurement date and is recorded as other current assets, current liabilities and other long-term liabilities in the Consolidated Balance Sheets. Nonfinancial assets such as goodwill, franchise value, or other long-lived assets are measured and recorded at fair value during a business combination or when there is an indicator of impairment. We evaluate our goodwill and franchise value using a qualitative assessment process. If the qualitative factors determine that it is more likely than not that the carrying value exceeds the fair value, we would further evaluate for potential impairment using a quantitative assessment. The quantitative assessment estimates fair values using unobservable (Level 3) inputs by discounting expected future cash flows of the store. The forecasted cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates, margins, working capital requirements, and cost of capital, for which we utilize certain market participant-based assumptions we believe to be reasonable. 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, 2023. Below are our assets and liabilities that are measured at fair value: As of September 30, 2023 As of December 31, 2022 ($ in millions) Carrying Value Level 1 Level 2 Level 3 Carrying Value Level 1 Level 2 Level 3 Recorded at fair value Investments Shift Technologies, Inc. $ 1.9 $ 1.9 $ — $ — $ 1.8 $ 1.8 $ — $ — Derivatives Derivative assets 16.9 — 16.9 — 22.1 — 22.1 — Derivative liabilities 16.9 — 16.9 — 22.1 — 22.1 — Recorded at historical value Fixed rate debt 1 4.625% Senior notes due 2027 400.0 366.0 — — 400.0 364.0 — — 4.375% Senior notes due 2031 550.0 453.1 — — 550.0 448.3 — — 3.875% Senior notes due 2029 800.0 674.0 — — 800.0 656.0 — — Non-recourse notes payable 1,469.9 — 1,452.4 — 422.2 — 411.8 — Real estate mortgages and other debt 618.1 — 602.1 — 489.0 — 399.0 — 1 Excluding unamortized debt issuance costs

ACQUISITIONS

ACQUISITIONS	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
ACQUISITIONS	ACQUISITIONS In the first nine months of 2023, we completed the following acquisitions: • In February 2023, Thornhill Acura in Canada. • In March 2023, Jardine Motors Group in the United Kingdom. • In June 2023, Priority Auto Group in Virginia. • In June 2023, Wade Ford in Georgia. • In July 2023, Hill Country Honda in Texas. • In August 2023, Arden Auto Group in the United Kingdom. Revenue and operating income contributed by the 2023 acquisitions subsequent to the date of acquisition were as follows (in millions): Nine Months Ended September 30, 2023 Revenue $ 1,721.2 Operating income 54.5 In the first nine months of 2022, we completed the following acquisitions: • In January 2022, John L. Sullivan Chevrolet, John L. Sullivan Chrysler Dodge Jeep Ram, and Roseville Toyota in California. • In March 2022, Sahara Chrysler Dodge Jeep Ram, Desert 215 Superstore, and Jeep Only in Nevada. • In May 2022, Sisley Honda in Canada. • In June 2022, Esserman International Volkswagen & Acura in Florida. • In June 2022, Henderson Hyundai Superstore in Nevada. • In June 2022, Lehman Auto Group in Florida. • In July 2022, Elk Grove Ford in California. • In September 2022, Wilde Auto Group in Wisconsin. 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 2023 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 $ 1,204.7 Contingent consideration 7.3 Total consideration transferred $ 1,212.0 (in millions) Assets Acquired and Liabilities Assumed Trade receivables, net $ 75.0 Inventories 573.2 Goodwill 30.5 Property and equipment 393.0 Operating lease right-of-use assets 89.6 Finance receivables, net 8.0 Other assets 725.4 Trade payables (83.5) Floor plan notes payable (353.7) Borrowings on lines of credit (47.9) Finance lease obligations (45.0) Deferred taxes, net 9.8 Other liabilities (162.4) Total net assets acquired and liabilities assumed $ 1,212.0 The purchase price allocations for the acquisitions from the fourth quarter of 2022 through the third quarter of 2023 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 and recorded unallocated items as a component of other non-current assets in the Consolidated Balance Sheets. We expect all of the goodwill related to US acquisitions completed in 2023 to be deductible for US federal income tax purposes. Due to local country laws, we do not expect goodwill related to UK acquisitions completed in 2023 to be deductible for UK income tax purposes. In the three and nine-month periods ended September 30, 2023, we recorded $4.8 million and $10.5 million in acquisition-related expenses as a component of selling, general and administrative expense. Comparatively, we recorded $2.0 million and $10.1 million, of acquisition-related expenses in the same periods of 2022. The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three and nine-month periods ended September 30, 2023 and 2022 had occurred on January 1, 2022: Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2023 2022 2023 2022 Revenue $ 8,317.4 $ 8,284.7 $ 24,560.3 $ 24,102.2 Net income attributable to Lithia Motors, Inc. 266.1 357.1 838.6 1,094.7 Basic earnings attributable to Lithia Motors, Inc. per share 9.65 12.96 30.46 38.43 Diluted earnings attributable to Lithia Motors, Inc. per share 9.63 12.91 30.40 38.29 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.

EARNINGS PER SHARE

EARNINGS PER SHARE	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
EARNINGS PER SHARE	EARNINGS PER SHARE We calculate basic earnings per share (EPS) by dividing net income attributable to Lithia Motors, Inc. by the weighted average number of common shares outstanding for the period, including vested RSU awards. Diluted EPS is calculated by dividing net income attributable to Lithia Motors, Inc. by the weighted average number of shares outstanding, adjusted for the dilutive effect of unvested RSU awards and employee stock purchases. The following is a reconciliation of net income attributable to Lithia Motors, Inc. and weighted average shares used for our basic EPS and diluted EPS: Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2023 2022 2023 2022 Net income attributable to Lithia Motors, Inc. and applicable to common stockholders $ 261.5 $ 329.6 $ 787.3 $ 1,003.4 Weighted average common shares outstanding – basic 27.6 27.5 27.5 28.5 Effect of employee stock purchases and restricted stock units on weighted average common shares — 0.1 0.1 0.1 Weighted average common shares outstanding – diluted 27.6 27.6 27.6 28.6 Basic earnings per share attributable to Lithia Motors, Inc. $ 9.49 $ 11.97 $ 28.60 $ 35.23 Diluted earnings per share attributable to Lithia Motors, Inc. $ 9.46 $ 11.92 $ 28.54 $ 35.10 The effect of antidilutive securities on common stock was evaluated for the three and nine-month periods ended September 30, 2023, and 2022 and was determined to be immaterial.

SEGMENTS

SEGMENTS	9 Months Ended
	Sep. 30, 2023
Segment Reporting [Abstract]
SEGMENTS	SEGMENTS We operate in two reportable segments: Vehicle Operations and Financing Operations. Our Vehicle Operations consists of all aspects of our auto merchandising and service operations, excluding financing provided by our Financing Operations. Our Financing Operations segment provides financing to customers buying and leasing retail vehicles from our Vehicle Operations. All other remaining unallocated corporate overhead expenses and internal charges are reported under “Corporate and Other”. Asset information by segment is not utilized for purposes of assessing performance or allocating resources and, as a result, such information has not been presented. Certain financial information on a segment basis is as follows: Three Months Ended Nine Months Ended (in millions) 2023 2022 2023 2022 Vehicle operations revenue $ 8,277.0 $ 7,295.7 $ 23,368.0 $ 21,241.3 Vehicle operations gross profit 1,371.3 1,314.2 3,968.2 3,943.3 Floor plan interest expense (40.2) (10.7) (102.6) (19.4) Vehicle operations selling, general and administrative (915.5) (841.6) (2,587.6) (2,472.4) Vehicle operations income 415.6 461.9 1,278.1 1,451.5 Financing operations interest margin: Interest, fee, and lease income 72.4 32.8 190.3 82.2 Interest expense (42.5) (13.3) (125.5) (23.3) Total interest margin 29.9 19.5 64.8 58.9 Selling, general and administrative (9.2) (8.1) (27.3) (22.6) Total pre-provision income 20.6 11.4 37.5 36.3 Provision expense (23.1) (14.5) (75.0) (25.5) Depreciation and amortization (2.0) (1.5) (6.3) (7.1) Financing operations (loss) income (4.4) (4.6) (43.8) 3.7 Total segment income for reportable segments 411.2 457.3 1,234.2 1,455.1 Corporate and other 64.7 87.4 129.5 181.1 Depreciation and amortization (50.8) (40.5) (146.4) (115.0) Other interest expense (58.5) (36.3) (141.5) (90.8) Other income (expense), net (5.3) (12.2) 6.8 (36.6) Income before income taxes $ 361.3 $ 455.7 $ 1,082.6 $ 1,393.9

RECENT ACCOUNTING PRONOUNCEMENT

RECENT ACCOUNTING PRONOUNCEMENTS	9 Months Ended
	Sep. 30, 2023
Accounting Changes and Error Corrections [Abstract]
RECENT ACCOUNTING PRONOUNCEMENTS	RECENT ACCOUNTING PRONOUNCEMENTSIn March 2022, the FASB issued an accounting pronouncement (ASU 2022-02) related to troubled debt restructurings (“TDRs”) and vintage disclosures for financing receivables. We adopted this pronouncement and made the necessary updates to our vintage disclosures for the interim period beginning January 1, 2023, and, aside from these disclosure changes, the amendments did not have a material effect on our financial statements.

Pay vs Performance Disclosure

Pay vs Performance Disclosure - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Pay vs Performance Disclosure
Net Income (Loss)	$ 261.5	$ 329.6	$ 787.3	$ 1,003.4

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended
	Sep. 30, 2023
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

INTERIM FINANCIAL STATEMENTS (P

INTERIM FINANCIAL STATEMENTS (Policies)	9 Months Ended
	Sep. 30, 2023
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, 2023, and for the three and nine months ended September 30, 2023 and 2022. 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 2022 audited Consolidated Financial Statements and the related notes thereto. The financial information as of December 31, 2022, is derived from our Annual Report on Form 10-K filed with the Securities and Exchange Commission on February 24, 2023. 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 reclassifications of amounts previously reported have been made to the accompanying Consolidated Financial Statements to maintain consistency and comparability between periods presented. We reclassified certain components within our Consolidated Statements of Cash Flows to present activity associated with Finance Receivables and Non-Recourse Notes Payable. We also reclassified components of our Consolidated Statements of Operations to present Finance Operations Income, and to change our presentation of segment reporting.
Commitments and Contingencies	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 $309.9 million and $284.3 million as of September 30, 2023, and December 31, 2022, respectively; and we recognized $13.2 million and $42.2 million of revenue in the three and nine months ended September 30, 2023 related to our contract liability balance at December 31, 2022. Our contract liability balance is included in accrued liabilities and deferred revenue. 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. We rent or sublease certain real estate to third parties.
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 the carrying value of accounts receivable, trade payables, accrued liabilities, finance receivables, 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 asset (Level 1) and recorded the fair value as part of other non-current assets. For the three and nine-month periods ended September 30, 2023, we recognized a $0.7 million and $0.1 million unrealized investment loss and gain related to Shift, respectively. For the three and nine-month periods ended September 30, 2022, we recognized a $0.3 million and $32.6 million unrealized investment gain and loss related to Shift, respectively. These amounts were recorded as a component of Other income (expense), net. We have fixed rate debt primarily consisting of amounts outstanding under our senior notes, non-recourse notes payable, and real estate mortgages. We calculated the estimated fair value of the senior notes using quoted prices for the identical liability (Level 1). The fair value of non-recourse notes payable are measured using observable Level 2 market expectations at each measurement date. The calculated estimated fair values of the fixed rate real estate mortgages and finance lease liabilities use 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. We have derivative instruments consisting of an offsetting set of interest rate caps. The fair value of derivative assets and liabilities are measured using observable Level 2 market expectations at each measurement date and is recorded as other current assets, current liabilities and other long-term liabilities in the Consolidated Balance Sheets. Nonfinancial assets such as goodwill, franchise value, or other long-lived assets are measured and recorded at fair value during a business combination or when there is an indicator of impairment. We evaluate our goodwill and franchise value using a qualitative assessment process. If the qualitative factors determine that it is more likely than not that the carrying value exceeds the fair value, we would further evaluate for potential impairment using a quantitative assessment. The quantitative assessment estimates fair values using unobservable (Level 3) inputs by discounting expected future cash flows of the store. The forecasted cash flows contain inherent uncertainties, including significant estimates and assumptions related to growth rates, margins, working capital requirements, and cost of capital, for which we utilize certain market participant-based assumptions we believe to be reasonable. 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.

ACCOUNTS RECEIVABLE (Tables)

ACCOUNTS RECEIVABLE (Tables)	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consisted of the following: (in millions) September 30, 2023 December 31, 2022 Contracts in transit $ 458.8 $ 432.5 Trade receivables 156.3 122.6 Vehicle receivables 170.3 105.4 Manufacturer receivables 207.8 151.9 Other receivables, current 10.6 3.8 1,003.8 816.2 Less: Allowance for doubtful accounts (4.5) (3.1) Total accounts receivable, net $ 999.3 $ 813.1 Finance Receivables, net (in millions) September 30, 2023 December 31, 2022 Asset-backed term funding $ 1,840.2 $ 482.1 Warehouse facilities 861.5 1,383.9 Other managed receivables 503.4 390.9 Total finance receivables 3,205.1 2,256.9 Less: Allowance for finance receivable losses (103.0) (69.3) Finance receivables, net $ 3,102.1 $ 2,187.6

INVENTORIES AND FLOOR PLAN NO_2

INVENTORIES AND FLOOR PLAN NOTES PAYABLE (Tables)	9 Months Ended
	Sep. 30, 2023
Inventory Disclosure [Abstract]
Schedule of Inventories	The components of inventories, net, consisted of the following: (in millions) September 30, 2023 December 31, 2022 New vehicles $ 2,457.3 $ 1,679.8 Used vehicles 1,724.2 1,529.3 Parts and accessories 223.0 200.3 Total inventories $ 4,404.5 $ 3,409.4
Schedule of Debt	(in millions) September 30, 2023 December 31, 2022 Floor plan notes payable: non-trade $ 1,863.4 $ 1,489.4 Floor plan notes payable 1,261.2 627.2 Total floor plan debt $ 3,124.6 $ 2,116.6

FINANCE RECEIVABLES (Tables)

FINANCE RECEIVABLES (Tables)	9 Months Ended
	Sep. 30, 2023
Receivables [Abstract]
Schedule of Accounts Receivable	Accounts receivable consisted of the following: (in millions) September 30, 2023 December 31, 2022 Contracts in transit $ 458.8 $ 432.5 Trade receivables 156.3 122.6 Vehicle receivables 170.3 105.4 Manufacturer receivables 207.8 151.9 Other receivables, current 10.6 3.8 1,003.8 816.2 Less: Allowance for doubtful accounts (4.5) (3.1) Total accounts receivable, net $ 999.3 $ 813.1 Finance Receivables, net (in millions) September 30, 2023 December 31, 2022 Asset-backed term funding $ 1,840.2 $ 482.1 Warehouse facilities 861.5 1,383.9 Other managed receivables 503.4 390.9 Total finance receivables 3,205.1 2,256.9 Less: Allowance for finance receivable losses (103.0) (69.3) Finance receivables, net $ 3,102.1 $ 2,187.6
Schedule of Financing Receivable Credit Quality Indicators	Finance Receivables by FICO Score As of September 30, 2023 Year of Origination ($ in millions) 2023 2022 2021 2020 Total <599 $ 53.4 $ 45.3 $ 20.4 $ 3.0 $ 122.1 600-699 491.0 508.2 171.8 18.3 1,189.3 700-774 472.6 459.7 71.3 6.6 1,010.2 775+ 404.3 285.9 16.2 3.1 709.5 Total auto loan receivables $ 1,421.3 $ 1,299.1 $ 279.7 $ 31.0 3,031.1 Other finance receivables 1 174.0 Total finance receivables $ 3,205.1 As of December 31, 2022 Year of Origination ($ in millions) 2022 2021 2020 Total <599 $ 63.0 $ 30.3 $ 4.8 $ 98.1 600-699 652.6 243.4 27.2 923.2 700-774 575.9 97.9 10.0 683.8 775+ 369.5 21.5 4.5 395.5 Total auto loan receivables $ 1,661.0 $ 393.1 46.5 2,100.6 Other finance receivables 1 156.3 Total finance receivables $ 2,256.9 1 Includes legacy portfolio, loans that are originated with no FICO score available, and lease receivables.
Schedule of Financing Receivable, Noncurrent, Allowance for Credit Loss	The allowances for credit losses related to finance receivables consisted of the following changes during the period: Nine Months Ended September 30, (in millions) 2023 2022 Allowance at beginning of period $ 69.3 $ 25.0 Charge-offs (79.1) (36.3) Recoveries 35.5 12.2 Initial allowance for purchased credit-deteriorated loans 2.3 — Provision expense 75.0 51.5 Allowance at end of period $ 103.0 $ 52.4 Charge-off Activity by Year of Origination Nine Months Ended September 30, (in millions) 2023 2022 2023 $ 5.0 $ — 2022 47.1 5.7 2021 23.0 24.1 2020 2.3 3.5 Other finance receivables 1 1.7 3.0 Total charge-offs $ 79.1 $ 36.3 1 Includes legacy portfolio, loans that are originated with no FICO score available, and lease receivables.
Schedule of Purchased Financial Assets with Credit Deterioration	The following is a reconciliation of the difference between the purchase price paid by us for the financial assets and the par value (outstanding principal balance) of the assets on the date we acquired the portfolio: Purchase price of PCD loans at acquisition $ 8.0 Initial allowance for credit losses of PCD loans at acquisition 2.3 Noncredit premium of PCD loans at acquisition (1.2) Par value of acquired PCD loans at acquisition $ 9.1

GOODWILL AND FRANCHISE VALUE (T

GOODWILL AND FRANCHISE VALUE (Tables)	9 Months Ended
	Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	The changes in the carrying amounts of goodwill are as follows: (in millions) Vehicle Operations Financing Operations Consolidated Balance as of December 31, 2021 $ 977.3 $ — $ 977.3 Additions through acquisitions 1 483.4 17.0 500.4 Reductions through divestitures (17.9) — (17.9) Currency translation 0.7 0.2 0.9 Balance as of December 31, 2022 1,443.5 17.2 1,460.7 Additions through acquisitions 2 315.0 — 315.0 Reductions through divestitures (49.9) — (49.9) Currency translation (0.2) — (0.2) Balance as of September 30, 2023 $ 1,708.4 $ 17.2 $ 1,725.6 1 Our purchase price allocation for the 2021 acquisitions were finalized in 2022. As a result, we added $500.4 million of goodwill. 2 Our purchase price allocation for a portion of the 2022 acquisitions were finalized in 2023. As a result, we added $315.0 million of goodwill. Our purchase price allocation for the remaining 2022 and 2023 acquisitions are preliminary and goodwill is not yet allocated to our segments. These amounts are included in other non-current assets until we finalize our purchase accounting. See Note 11 – Acquisitions.
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, 2021 $ 799.1 Additions through acquisitions 1 1,088.4 Reductions through divestitures (33.6) Currency translation 2.3 Balance as of December 31, 2022 1,856.2 Additions through acquisitions 2 305.8 Reductions through divestitures (13.8) Currency translation (0.5) Balance as of September 30, 2023 $ 2,147.7 1 Our purchase price allocation for the 2021 acquisitions were finalized in 2022. As a result, we added $1.1 billion of franchise value. 2 Our purchase price allocations for a portion of the 2022 acquisitions were finalized in 2023. As a result, we added $305.8 million of franchise value. Our purchase price allocation for the remaining 2022 and 2023 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 11 – Acquisitions.

NET INVESTMENT IN OPERATING L_2

NET INVESTMENT IN OPERATING LEASES (Tables)	9 Months Ended
	Sep. 30, 2023
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, 2023 December 31, 2022 Vehicles, at cost 1 $ 99.7 $ 92.2 Accumulated depreciation 1 (10.2) (7.6) Net investment in operating leases $ 89.5 $ 84.6 1 Vehicles, at cost and accumulated depreciation are recorded in other current assets on the Consolidated Balance Sheets.

DEBT (Tables)

DEBT (Tables)	9 Months Ended
	Sep. 30, 2023
Debt Disclosure [Abstract]
Schedule of Line of Credit Facilities	The annual interest rates associated with our floor plan commitments are as follows: Commitment Annual Interest Rate at September 30, 2023 New vehicle floor plan 6.51% Used vehicle floor plan 6.81% Service loaner floor plan 6.61% Revolving line of credit 6.41%
Schedule of Long-Term Debt Instruments	In 2023, we issued approximately $1.5 billion in non-recourse notes payable related to asset-backed term funding transactions. Below is a summary of outstanding non-recourse notes payable issued: ($ in millions) Balance as of September 30, 2023 Initial Principal Amount Issuance Date Interest Rate Final Distribution Date LAD Auto Receivables Trust 2021-1 Class A 52.6 $ 282.8 11/24/21 1.300% 08/17/26 LAD Auto Receivables Trust 2021-1 Class B 18.3 18.3 11/24/21 1.940% 11/16/26 LAD Auto Receivables Trust 2021-1 Class C 26.0 26.0 11/24/21 2.350% 04/15/27 LAD Auto Receivables Trust 2021-1 Class D 17.2 17.2 11/24/21 3.990% 11/15/29 LAD Auto Receivables Trust 2022-1 Class A 132.7 259.7 08/17/22 5.210% 06/15/27 LAD Auto Receivables Trust 2022-1 Class B 15.5 15.5 08/17/22 5.870% 09/15/27 LAD Auto Receivables Trust 2022-1 Class C 23.0 23.0 08/17/22 6.850% 04/15/30 LAD Auto Receivables Trust 2023-1 Class A-1 — 75.1 02/14/23 4.929% 02/15/24 LAD Auto Receivables Trust 2023-1 Class A-2 191.4 242.0 02/14/23 5.680% 10/15/26 LAD Auto Receivables Trust 2023-1 Class A-3 74.4 74.4 02/14/23 5.480% 06/15/27 LAD Auto Receivables Trust 2023-1 Class B 20.1 20.1 02/14/23 5.590% 08/16/27 LAD Auto Receivables Trust 2023-1 Class C 36.7 36.7 02/14/23 6.180% 12/15/27 LAD Auto Receivables Trust 2023-1 Class D 31.3 31.3 02/14/23 7.300% 06/17/30 LAD Auto Receivables Trust 2023-2 Class A-1 — 87.4 05/24/23 5.440% 05/15/24 LAD Auto Receivables Trust 2023-2 Class A-2 262.2 287.0 05/24/23 5.930% 06/15/27 LAD Auto Receivables Trust 2023-2 Class A-3 80.0 80.0 05/24/23 5.420% 02/15/28 LAD Auto Receivables Trust 2023-2 Class B 22.9 22.9 05/24/23 5.450% 04/15/28 LAD Auto Receivables Trust 2023-2 Class C 54.7 54.7 05/24/23 5.580% 09/15/28 LAD Auto Receivables Trust 2023-2 Class D 24.8 24.8 05/24/23 6.300% 02/15/31 LAD Auto Receivables Trust 2023-3 Class A-1 34.0 63.2 08/23/23 5.632% 08/15/24 LAD Auto Receivables Trust 2023-3 Class A-2 127.8 127.8 08/23/23 6.090% 06/15/26 LAD Auto Receivables Trust 2023-3 Class A-3 100.0 100.0 08/23/23 6.120% 09/15/27 LAD Auto Receivables Trust 2023-3 Class A-4 45.0 45.0 08/23/23 5.950% 03/15/28 LAD Auto Receivables Trust 2023-3 Class B 22.6 22.6 08/23/23 6.090% 06/15/28 LAD Auto Receivables Trust 2023-3 Class C 39.9 39.9 08/23/23 6.430% 12/15/28 LAD Auto Receivables Trust 2023-3 Class D 16.8 16.8 08/23/23 6.920% 12/16/30 Total non-recourse notes payable $ 1,469.9 $ 2,094.2

EQUITY AND REDEEMABLE NON-CON_2

EQUITY AND REDEEMABLE NON-CONTROLLING INTERESTS (Tables)	9 Months Ended
	Sep. 30, 2023
Equity [Abstract]
Schedule of Share Repurchases	Share repurchases under our authorization were as follows: Repurchases Occurring in 2023 Cumulative Repurchases as of September 30, 2023 Shares Average Price Shares Average Price Share Repurchase Authorization — $ — 6,904,781 $ 173.59

FAIR VALUE MEASUREMENTS (Tables

FAIR VALUE MEASUREMENTS (Tables)	9 Months Ended
	Sep. 30, 2023
Fair Value Disclosures [Abstract]
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis	Below are our assets and liabilities that are measured at fair value: As of September 30, 2023 As of December 31, 2022 ($ in millions) Carrying Value Level 1 Level 2 Level 3 Carrying Value Level 1 Level 2 Level 3 Recorded at fair value Investments Shift Technologies, Inc. $ 1.9 $ 1.9 $ — $ — $ 1.8 $ 1.8 $ — $ — Derivatives Derivative assets 16.9 — 16.9 — 22.1 — 22.1 — Derivative liabilities 16.9 — 16.9 — 22.1 — 22.1 — Recorded at historical value Fixed rate debt 1 4.625% Senior notes due 2027 400.0 366.0 — — 400.0 364.0 — — 4.375% Senior notes due 2031 550.0 453.1 — — 550.0 448.3 — — 3.875% Senior notes due 2029 800.0 674.0 — — 800.0 656.0 — — Non-recourse notes payable 1,469.9 — 1,452.4 — 422.2 — 411.8 — Real estate mortgages and other debt 618.1 — 602.1 — 489.0 — 399.0 — 1 Excluding unamortized debt issuance costs

ACQUISITIONS (Tables)

ACQUISITIONS (Tables)	9 Months Ended
	Sep. 30, 2023
Business Combination and Asset Acquisition [Abstract]
Summary of Pro Forma Summary of All Acquisitions	Revenue and operating income contributed by the 2023 acquisitions subsequent to the date of acquisition were as follows (in millions): Nine Months Ended September 30, 2023 Revenue $ 1,721.2 Operating income 54.5 The following unaudited pro forma summary presents consolidated information as if all acquisitions in the three and nine-month periods ended September 30, 2023 and 2022 had occurred on January 1, 2022: Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2023 2022 2023 2022 Revenue $ 8,317.4 $ 8,284.7 $ 24,560.3 $ 24,102.2 Net income attributable to Lithia Motors, Inc. 266.1 357.1 838.6 1,094.7 Basic earnings attributable to Lithia Motors, Inc. per share 9.65 12.96 30.46 38.43 Diluted earnings attributable to Lithia Motors, Inc. per share 9.63 12.91 30.40 38.29
Summary of Acquisitions	The following tables summarize the consideration paid for the 2023 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 $ 1,204.7 Contingent consideration 7.3 Total consideration transferred $ 1,212.0
Summary of Assets Acquired and Liabilities Assumed	(in millions) Assets Acquired and Liabilities Assumed Trade receivables, net $ 75.0 Inventories 573.2 Goodwill 30.5 Property and equipment 393.0 Operating lease right-of-use assets 89.6 Finance receivables, net 8.0 Other assets 725.4 Trade payables (83.5) Floor plan notes payable (353.7) Borrowings on lines of credit (47.9) Finance lease obligations (45.0) Deferred taxes, net 9.8 Other liabilities (162.4) Total net assets acquired and liabilities assumed $ 1,212.0

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	9 Months Ended
	Sep. 30, 2023
Earnings Per Share [Abstract]
Schedule of Earnings Per Share, Basic and Diluted	The following is a reconciliation of net income attributable to Lithia Motors, Inc. and weighted average shares used for our basic EPS and diluted EPS: Nine Months Ended September 30, Three Months Ended September 30, Nine Months Ended September 30, (in millions, except per share amounts) 2023 2022 2023 2022 Net income attributable to Lithia Motors, Inc. and applicable to common stockholders $ 261.5 $ 329.6 $ 787.3 $ 1,003.4 Weighted average common shares outstanding – basic 27.6 27.5 27.5 28.5 Effect of employee stock purchases and restricted stock units on weighted average common shares — 0.1 0.1 0.1 Weighted average common shares outstanding – diluted 27.6 27.6 27.6 28.6 Basic earnings per share attributable to Lithia Motors, Inc. $ 9.49 $ 11.97 $ 28.60 $ 35.23 Diluted earnings per share attributable to Lithia Motors, Inc. $ 9.46 $ 11.92 $ 28.54 $ 35.10

SEGMENTS (Tables)

SEGMENTS (Tables)	9 Months Ended
	Sep. 30, 2023
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) 2023 2022 2023 2022 Vehicle operations revenue $ 8,277.0 $ 7,295.7 $ 23,368.0 $ 21,241.3 Vehicle operations gross profit 1,371.3 1,314.2 3,968.2 3,943.3 Floor plan interest expense (40.2) (10.7) (102.6) (19.4) Vehicle operations selling, general and administrative (915.5) (841.6) (2,587.6) (2,472.4) Vehicle operations income 415.6 461.9 1,278.1 1,451.5 Financing operations interest margin: Interest, fee, and lease income 72.4 32.8 190.3 82.2 Interest expense (42.5) (13.3) (125.5) (23.3) Total interest margin 29.9 19.5 64.8 58.9 Selling, general and administrative (9.2) (8.1) (27.3) (22.6) Total pre-provision income 20.6 11.4 37.5 36.3 Provision expense (23.1) (14.5) (75.0) (25.5) Depreciation and amortization (2.0) (1.5) (6.3) (7.1) Financing operations (loss) income (4.4) (4.6) (43.8) 3.7 Total segment income for reportable segments 411.2 457.3 1,234.2 1,455.1 Corporate and other 64.7 87.4 129.5 181.1 Depreciation and amortization (50.8) (40.5) (146.4) (115.0) Other interest expense (58.5) (36.3) (141.5) (90.8) Other income (expense), net (5.3) (12.2) 6.8 (36.6) Income before income taxes $ 361.3 $ 455.7 $ 1,082.6 $ 1,393.9

ACCOUNTS RECEIVABLE - Summary o

ACCOUNTS RECEIVABLE - Summary of Accounts Receivable (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, before allowance for credit loss	$ 1,003.8	$ 816.2
Less: Allowance for doubtful accounts	(4.5)	(3.1)
Total accounts receivable, net	999.3	813.1
Contracts in transit
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, before allowance for credit loss	458.8	432.5
Trade receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, before allowance for credit loss	156.3	122.6
Vehicle receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, before allowance for credit loss	170.3	105.4
Manufacturer receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, before allowance for credit loss	207.8	151.9
Other receivables, current
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable, before allowance for credit loss	$ 10.6	$ 3.8

INVENTORIES AND FLOOR PLAN NO_3

INVENTORIES AND FLOOR PLAN NOTES PAYABLE - Schedule of Inventories (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Inventory [Line Items]
Total inventories	$ 4,404.5	$ 3,409.4
New vehicles
Inventory [Line Items]
Total inventories	2,457.3	1,679.8
Used vehicles
Inventory [Line Items]
Total inventories	1,724.2	1,529.3
Parts and accessories
Inventory [Line Items]
Total inventories	$ 223	$ 200.3

INVENTORIES AND FLOOR PLAN NO_4

INVENTORIES AND FLOOR PLAN NOTES PAYABLE - Schedule of Debt (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Inventory Disclosure [Abstract]
Floor plan notes payable: non-trade	$ 1,863.4	$ 1,489.4
Floor plan notes payable	1,261.2	627.2
Total floor plan debt	$ 3,124.6	$ 2,116.6

FINANCE RECEIVABLES - Additiona

FINANCE RECEIVABLES - Additional Information (Details) - Auto Loan and Lease Receivables	Sep. 30, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables, 60 days or less past due, percent	99%
Receivables, 60 days or less past due, non-accrual status, percent	1%

FINANCE RECEIVABLES - Schedule

FINANCE RECEIVABLES - Schedule of Acounts Receivable (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Sep. 30, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total finance receivables	$ 3,205.1	$ 2,256.9
Less: Allowance for finance receivable losses	(103)	(69.3)	$ (52.4)	$ (25)
Finance receivables, net	3,102.1	2,187.6
Asset-backed term funding
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total finance receivables	1,840.2	482.1
Warehouse facilities
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total finance receivables	861.5	1,383.9
Other managed receivables
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total finance receivables	$ 503.4	$ 390.9

FINANCE RECEIVABLES - Schedul_2

FINANCE RECEIVABLES - Schedule of Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Financing Receivable, Allowance for Credit Loss [Line Items]
Total finance receivables	$ 3,205.1	$ 2,256.9
Automobile Loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Current year	1,421.3	1,661
Fiscal year before current fiscal year	1,299.1	393.1
Two years before current fiscal year	279.7	46.5
Three years before current fiscal year	31
Total finance receivables	3,031.1	2,100.6
Other Finance Receivables
Financing Receivable, Allowance for Credit Loss [Line Items]
Total finance receivables	174	156.3
Less than 599 | Automobile Loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Current year	53.4	63
Fiscal year before current fiscal year	45.3	30.3
Two years before current fiscal year	20.4	4.8
Three years before current fiscal year	3
Total finance receivables	122.1	98.1
FICO Score, 600 to 699 | Automobile Loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Current year	491	652.6
Fiscal year before current fiscal year	508.2	243.4
Two years before current fiscal year	171.8	27.2
Three years before current fiscal year	18.3
Total finance receivables	1,189.3	923.2
FICO Score, 700 to 774 | Automobile Loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Current year	472.6	575.9
Fiscal year before current fiscal year	459.7	97.9
Two years before current fiscal year	71.3	10
Three years before current fiscal year	6.6
Total finance receivables	1,010.2	683.8
FICO Score, Greater than 775 | Automobile Loan
Financing Receivable, Allowance for Credit Loss [Line Items]
Current year	404.3	369.5
Fiscal year before current fiscal year	285.9	21.5
Two years before current fiscal year	16.2	4.5
Three years before current fiscal year	3.1
Total finance receivables	$ 709.5	$ 395.5

FINANCE RECEIVABLES - Schedul_3

FINANCE RECEIVABLES - Schedule of Financing Receivable, Noncurrent, Allowance for Credit Loss (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable, Allowance for Credit Loss [Roll Forward]
Allowance at beginning of period	$ 69.3	$ 25
Charge-offs	(79.1)	(36.3)
Recoveries	35.5	12.2
Initial allowance for credit losses of PCD loans at acquisition	2.3	0
Provision expense	75	51.5
Allowance at end of period	$ 103	$ 52.4

FINANCE RECEIVABLES - Schedul_4

FINANCE RECEIVABLES - Schedule of Charge-off Activity (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Financing Receivable Excluding Accrued Interest Allowance For Credit Loss Writeoff By Origination Year [Abstract]
2023	$ 5	$ 0
2022	47.1	5.7
2021	23	24.1
2020	2.3	3.5
Other finance receivables	1.7	3
Total charge-offs	$ 79.1	$ 36.3

FINANCE RECEIVABLES - Schedul_5

FINANCE RECEIVABLES - Schedule of Purchased Financial Assets with Credit Deterioration (Details) $ in Millions	Jun. 12, 2023 USD ($)
Receivables [Abstract]
Purchase price of PCD loans at acquisition	$ 8
Initial allowance for credit losses of PCD loans at acquisition	2.3
Noncredit premium of PCD loans at acquisition	(1.2)
Par value of acquired PCD loans at acquisition	$ 9.1

GOODWILL AND FRANCHISE VALUE -

GOODWILL AND FRANCHISE VALUE - Schedule of Goodwill (Details) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Goodwill [Roll Forward]
Beginning balance	$ 1,460.7	$ 977.3
Additions through acquisitions	315	500.4
Reductions through divestitures	(49.9)	(17.9)
Currency translation	(0.2)	0.9
Ending balance	1,725.6	1,460.7
Vehicle Operations
Goodwill [Roll Forward]
Beginning balance	1,443.5	977.3
Additions through acquisitions	315	483.4
Reductions through divestitures	(49.9)	(17.9)
Currency translation	(0.2)	0.7
Ending balance	1,708.4	1,443.5
Financing Operations
Goodwill [Roll Forward]
Beginning balance	17.2	0
Additions through acquisitions	0	17
Reductions through divestitures	0	0
Currency translation	0	0.2
Ending balance	$ 17.2	$ 17.2

GOODWILL AND FRANCHISE VALUE _2

GOODWILL AND FRANCHISE VALUE - Schedule of Franchise Value (Details) - Franchise Rights - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2023	Dec. 31, 2022
Indefinite-lived Intangible Assets [Roll Forward]
Balance as of beginning of period	$ 1,856.2	$ 799.1
Additions through acquisitions	305.8	1,088.4
Reductions through divestitures	(13.8)	(33.6)
Currency translation	(0.5)	2.3
Balance as of end of period	$ 2,147.7	$ 1,856.2

NET INVESTMENT IN OPERATING L_3

NET INVESTMENT IN OPERATING LEASES (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]
Vehicles, at cost	$ 99.7	$ 92.2
Accumulated depreciation	(10.2)	(7.6)
Net investment in operating leases	$ 89.5	$ 84.6

COMMITMENTS AND CONTINGENCIES (

COMMITMENTS AND CONTINGENCIES (Details) $ in Millions	3 Months Ended	9 Months Ended
	Sep. 30, 2023 USD ($) option	Sep. 30, 2023 USD ($) option	Dec. 31, 2022 USD ($)
Other Commitments [Line Items]
Contract liability	$ 309.9	$ 309.9	$ 284.3
Contract liability, revenue recognized	$ 13.2	$ 42.2
Lease renewal option | option	1	1
Minimum
Other Commitments [Line Items]
Lease renewal term	1 year	1 year
Maximum
Other Commitments [Line Items]
Lease renewal term	24 years	24 years

DEBT - Additional Information (

DEBT - Additional Information (Details)	Jul. 20, 2023 USD ($)	Feb. 09, 2023 USD ($) financialInstitution financeCompany	Sep. 30, 2023 USD ($)
JPM Warehouse Facility
Debt Instrument [Line Items]
Total financing commitment (up to)	$ 1,000,000,000
Facility drawn			$ 375,000,000
Mizuho Warehouse Facility
Debt Instrument [Line Items]
Total financing commitment (up to)	750,000,000
Facility drawn	$ 210,000,000
Line of credit | Syndicated Credit Facility
Debt Instrument [Line Items]
Debt instrument, number of counter-parties | financialInstitution		20
Debt instrument, number of manufacturer-affiliated finance companies | financeCompany		8
Financing commitment amount		$ 4,500,000,000
Total financing commitment (up to)		$ 5,500,000,000
Line of credit | Syndicated Credit Facility | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		0.10%
Line of credit | Syndicated Credit Facility | Used vehicle floor plan
Debt Instrument [Line Items]
Total financing commitment (up to)		$ 800,000,000
Option to reallocate commitment, maximum aggregate commitment threshold percentage		40%
Line of credit | Syndicated Credit Facility | Used vehicle floor plan | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.40%
Line of credit | Syndicated Credit Facility | Revolving line of credit
Debt Instrument [Line Items]
Total financing commitment (up to)		$ 1,700,000,000
Line of credit | Syndicated Credit Facility | Revolving line of credit | SOFR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1%
Line of credit | Syndicated Credit Facility | Revolving line of credit | SOFR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		2%
Line of credit | Syndicated Credit Facility | New vehicle floor plan
Debt Instrument [Line Items]
Total financing commitment (up to)		$ 1,950,000,000
Line of credit | Syndicated Credit Facility | New vehicle floor plan | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.10%
Line of credit | Syndicated Credit Facility | Service loaner floor plan
Debt Instrument [Line Items]
Total financing commitment (up to)		$ 50,000,000
Option to reallocate commitment, maximum aggregate commitment threshold percentage		3%
Line of credit | Syndicated Credit Facility | Service loaner floor plan | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)		1.20%
Line of credit | JPM Warehouse Facility | SOFR | Minimum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.15%
Line of credit | JPM Warehouse Facility | SOFR | Maximum
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.95%
Line of credit | Mizuho Warehouse Facility | SOFR
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)	1.20%

DEBT- Schedule of Credit Facili

DEBT- Schedule of Credit Facilities (Details) - Line of Credit - Syndicated Credit Facility	Sep. 30, 2023
New vehicle floor plan
Line of Credit Facility [Line Items]
Annual interest rates	6.51%
Used vehicle floor plan
Line of Credit Facility [Line Items]
Annual interest rates	6.81%
Service loaner floor plan
Line of Credit Facility [Line Items]
Annual interest rates	6.61%
Revolving line of credit
Line of Credit Facility [Line Items]
Annual interest rates	6.41%

DEBT - Schedule of Non-Recourse

DEBT - Schedule of Non-Recourse Notes Payable (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Debt Instrument [Line Items]
Proceeds from issuance of non-recourse notes payable	$ 1,451.7	$ 298.2
Non-recourse | Asset Backed Funding Vehicles
Debt Instrument [Line Items]
Proceeds from issuance of non-recourse notes payable	1,500
Non-recourse notes payable | Non-recourse
Debt Instrument [Line Items]
Long-term debt	1,469.9
Aggregate principal amount	2,094.2
Non-recourse notes payable | LAD Auto Receivables Trust 2021-1 Class A | Non-recourse
Debt Instrument [Line Items]
Long-term debt	52.6
Aggregate principal amount	$ 282.8
Stated interest rate	1.30%
Non-recourse notes payable | LAD Auto Receivables Trust 2021-1 Class B | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 18.3
Aggregate principal amount	$ 18.3
Stated interest rate	1.94%
Non-recourse notes payable | LAD Auto Receivables Trust 2021-1 Class C | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 26
Aggregate principal amount	$ 26
Stated interest rate	2.35%
Non-recourse notes payable | LAD Auto Receivables Trust 2021-1 Class D | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 17.2
Aggregate principal amount	$ 17.2
Stated interest rate	3.99%
Non-recourse notes payable | LAD Auto Receivables Trust 2022-1 Class A | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 132.7
Aggregate principal amount	$ 259.7
Stated interest rate	5.21%
Non-recourse notes payable | LAD Auto Receivables Trust 2022-1 Class B | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 15.5
Aggregate principal amount	$ 15.5
Stated interest rate	5.87%
Non-recourse notes payable | LAD Auto Receivables Trust 2022-1 Class C | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 23
Aggregate principal amount	$ 23
Stated interest rate	6.85%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-1 Class A-1 | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 0
Aggregate principal amount	$ 75.1
Stated interest rate	4.929%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-1 Class A-2 | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 191.4
Aggregate principal amount	$ 242
Stated interest rate	5.68%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-1 Class A-3 | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 74.4
Aggregate principal amount	$ 74.4
Stated interest rate	5.48%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-1 Class B | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 20.1
Aggregate principal amount	$ 20.1
Stated interest rate	5.59%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-1 Class C | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 36.7
Aggregate principal amount	$ 36.7
Stated interest rate	6.18%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-1 Class D | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 31.3
Aggregate principal amount	$ 31.3
Stated interest rate	7.30%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-2 Class A-1 | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 0
Aggregate principal amount	$ 87.4
Stated interest rate	5.44%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-2 Class A-2 | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 262.2
Aggregate principal amount	$ 287
Stated interest rate	5.93%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-2 Class A-3 | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 80
Aggregate principal amount	$ 80
Stated interest rate	5.42%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-2 Class B | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 22.9
Aggregate principal amount	$ 22.9
Stated interest rate	5.45%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-2 Class C | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 54.7
Aggregate principal amount	$ 54.7
Stated interest rate	5.58%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-2 Class D | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 24.8
Aggregate principal amount	$ 24.8
Stated interest rate	6.30%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-3 Class A-1 | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 34
Aggregate principal amount	$ 63.2
Stated interest rate	5.632%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-3 Class A-2 | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 127.8
Aggregate principal amount	$ 127.8
Stated interest rate	6.09%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-3 Class A-3 | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 100
Aggregate principal amount	$ 100
Stated interest rate	6.12%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-3 Class A-4 | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 45
Aggregate principal amount	$ 45
Stated interest rate	5.95%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-3 Class B | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 22.6
Aggregate principal amount	$ 22.6
Stated interest rate	6.09%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-3 Class C | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 39.9
Aggregate principal amount	$ 39.9
Stated interest rate	6.43%
Non-recourse notes payable | LAD Auto Receivables Trust 2023-3 Class D | Non-recourse
Debt Instrument [Line Items]
Long-term debt	$ 16.8
Aggregate principal amount	$ 16.8
Stated interest rate	6.92%

EQUITY AND REDEEMABLE NON-CON_3

EQUITY AND REDEEMABLE NON-CONTROLLING INTERESTS - Additional Information (Details) $ / shares in Units, $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($) $ / shares shares
Equity, Class of Treasury Stock [Line Items]
Share repurchase authorization	$ 501.4
Restricted Stock Units (RSUs)
Equity, Class of Treasury Stock [Line Items]
Number of shares repurchased (in shares) | shares	70,626
Average purchase price per share (in dollars per share) | $ / shares	$ 204.92
Amount related to tax withholdings associated with vesting of RSUs	$ 14.5

EQUITY AND REDEEMABLE NON-CON_4

EQUITY AND REDEEMABLE NON-CONTROLLING INTERESTS - Summary of Share Repurchases (Details)	9 Months Ended
	Sep. 30, 2023 $ / shares shares
Equity [Abstract]
Repurchases, Shares | shares	0
Repurchases, Average Price (in dollars per share) | $ / shares	$ 0
Cumulative Repurchases, Shares | shares	6,904,781
Cumulative Repurchases, Average Purchase Price (in dollars per share) | $ / shares	$ 173.59

FAIR VALUE MEASUREMENTS - Addit

FAIR VALUE MEASUREMENTS - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized investment (loss) gain			$ 0.1	$ (32.6)
Shift Technologies, Inc.
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Unrealized investment (loss) gain	$ (0.7)	$ 0.3	$ 0.1	$ (32.6)

FAIR VALUE MEASUREMENTS - Sched

FAIR VALUE MEASUREMENTS - Schedule of Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022
4.625% Senior notes due 2027 | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate	4.625%
4.375% Senior notes due 2031 | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate	4.375%
3.875% Senior notes due 2029 | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Stated interest rate	3.875%
Fair Value, Recurring | Carrying Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	$ 1.9	$ 1.8
Derivative assets	16.9	22.1
Derivative liabilities	16.9	22.1
Fair Value, Recurring | Carrying Value | Non-recourse notes payable | Non-recourse
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	1,469.9	422.2
Fair Value, Recurring | Carrying Value | Real estate mortgages and other debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	618.1	489
Fair Value, Recurring | 4.625% Senior notes due 2027 | Carrying Value | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	400	400
Fair Value, Recurring | 4.375% Senior notes due 2031 | Carrying Value | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	550	550
Fair Value, Recurring | 3.875% Senior notes due 2029 | Carrying Value | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	800	800
Fair Value, Recurring | Level 1 | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	1.9	1.8
Derivative assets	0	0
Derivative liabilities	0	0
Fair Value, Recurring | Level 1 | Estimate of Fair Value Measurement | Non-recourse notes payable | Non-recourse
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0	0
Fair Value, Recurring | Level 1 | Estimate of Fair Value Measurement | Real estate mortgages and other debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0	0
Fair Value, Recurring | Level 1 | 4.625% Senior notes due 2027 | Estimate of Fair Value Measurement | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	366	364
Fair Value, Recurring | Level 1 | 4.375% Senior notes due 2031 | Estimate of Fair Value Measurement | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	453.1	448.3
Fair Value, Recurring | Level 1 | 3.875% Senior notes due 2029 | Estimate of Fair Value Measurement | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	674	656
Fair Value, Recurring | Level 2 | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Derivative assets	16.9	22.1
Derivative liabilities	16.9	22.1
Fair Value, Recurring | Level 2 | Estimate of Fair Value Measurement | Non-recourse notes payable | Non-recourse
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	1,452.4	411.8
Fair Value, Recurring | Level 2 | Estimate of Fair Value Measurement | Real estate mortgages and other debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	602.1	399
Fair Value, Recurring | Level 2 | 4.625% Senior notes due 2027 | Estimate of Fair Value Measurement | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0	0
Fair Value, Recurring | Level 2 | 4.375% Senior notes due 2031 | Estimate of Fair Value Measurement | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0	0
Fair Value, Recurring | Level 2 | 3.875% Senior notes due 2029 | Estimate of Fair Value Measurement | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0	0
Fair Value, Recurring | Level 3 | Estimate of Fair Value Measurement
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Investments	0	0
Derivative assets	0	0
Derivative liabilities	0	0
Fair Value, Recurring | Level 3 | Estimate of Fair Value Measurement | Non-recourse notes payable | Non-recourse
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0	0
Fair Value, Recurring | Level 3 | Estimate of Fair Value Measurement | Real estate mortgages and other debt
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0	0
Fair Value, Recurring | Level 3 | 4.625% Senior notes due 2027 | Estimate of Fair Value Measurement | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0	0
Fair Value, Recurring | Level 3 | 4.375% Senior notes due 2031 | Estimate of Fair Value Measurement | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	0	0
Fair Value, Recurring | Level 3 | 3.875% Senior notes due 2029 | Estimate of Fair Value Measurement | Senior Notes
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Long-term debt	$ 0	$ 0

ACQUISITIONS - Summary of Reven

ACQUISITIONS - Summary of Revenue and Operating Income from Acquisitions (Details) - 2023 Acquisition $ in Millions	9 Months Ended
	Sep. 30, 2023 USD ($)
Business Acquisition [Line Items]
Revenue	$ 1,721.2
Operating income	$ 54.5

ACQUISITIONS - Summary of Acqui

ACQUISITIONS - Summary of Acquisitions (Details) - USD ($) $ in Millions	9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Business Acquisition [Line Items]
Cash paid, net of cash acquired	$ 1,204.7	$ 962.6
2023 Acquisition
Business Acquisition [Line Items]
Cash paid, net of cash acquired	1,204.7
Contingent consideration	7.3
Total consideration transferred	$ 1,212

ACQUISITIONS - Summary of Asset

ACQUISITIONS - Summary of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Millions	Sep. 30, 2023	Dec. 31, 2022	Dec. 31, 2021
Business Acquisition [Line Items]
Goodwill	$ 1,725.6	$ 1,460.7	$ 977.3
2023 Acquisition
Business Acquisition [Line Items]
Trade receivables, net	75
Inventories	573.2
Goodwill	30.5
Property and equipment	393
Operating lease right-of-use assets	89.6
Finance receivables, net	8
Other assets	725.4
Trade payables	(83.5)
Floor plan notes payable	(353.7)
Borrowings on lines of credit	(47.9)
Finance lease obligations	(45)
Deferred taxes, net	9.8
Other liabilities	(162.4)
Total net assets acquired and liabilities assumed	$ 1,212

ACQUISITIONS - Additional Infor

ACQUISITIONS - Additional Information (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Acquisition-related expenses	$ 4.8	$ 2	$ 10.5	$ 10.1

ACQUISITIONS - Pro Forma Summar

ACQUISITIONS - Pro Forma Summary of All Acquisitions (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]
Revenue	$ 8,317.4	$ 8,284.7	$ 24,560.3	$ 24,102.2
Net income attributable to Lithia Motors, Inc.	$ 266.1	$ 357.1	$ 838.6	$ 1,094.7
Basic earnings attributable to Lithia Motors, Inc. per share (in dollars per share)	$ 9.65	$ 12.96	$ 30.46	$ 38.43
Diluted earnings attributable to Lithia Motors, Inc. per share (in dollars per share)	$ 9.63	$ 12.91	$ 30.40	$ 38.29

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Earnings Per Share [Abstract]
Net income attributable to Lithia Motors, Inc. and applicable to common stockholders	$ 261.5	$ 329.6	$ 787.3	$ 1,003.4
Weighted average common shares outstanding - basic (in shares)	27.6	27.5	27.5	28.5
Effect of employee stock purchases and restricted stock units on weighted average common shares (in shares)	0	0.1	0.1	0.1
Weighted average common shares outstanding – diluted (in shares)	27.6	27.6	27.6	28.6
Basic earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 9.49	$ 11.97	$ 28.60	$ 35.23
Diluted earnings per share attributable to Lithia Motors, Inc. (in dollars per share)	$ 9.46	$ 11.92	$ 28.54	$ 35.10

SEGMENTS - Additional Informati

SEGMENTS - Additional Information (Details)	9 Months Ended
	Sep. 30, 2023 segment
Segment Reporting [Abstract]
Number of reportable segments	2

SEGMENTS - Schedule of Certain

SEGMENTS - Schedule of Certain Financial Information on a Segment Basis (Details) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2023	Sep. 30, 2022	Sep. 30, 2023	Sep. 30, 2022
Segment Reporting Information [Line Items]
Total revenues	$ 8,277	$ 7,295.7	$ 23,368	$ 21,241.3
Gross profit	1,371.3	1,314.2	3,968.2	3,943.3
Floor plan interest expense	(40.2)	(10.7)	(102.6)	(19.4)
Selling, general and administrative	(850.8)	(754.2)	(2,458.1)	(2,291.3)
Operating income	465.3	514.9	1,319.9	1,540.7
Depreciation and amortization	(50.8)	(40.5)	(146.4)	(115)
Income before income taxes	361.3	455.7	1,082.6	1,393.9
Depreciation and amortization			(154.9)	(122.1)
Other interest expense	(58.5)	(36.3)	(141.5)	(90.8)
Other income (expense), net	(5.3)	(12.2)	6.8	(36.6)
Operating segments
Segment Reporting Information [Line Items]
Floor plan interest expense	(40.2)	(10.7)	(102.6)	(19.4)
Income before income taxes	411.2	457.3	1,234.2	1,455.1
Operating segments | Vehicle Operations
Segment Reporting Information [Line Items]
Total revenues	8,277	7,295.7	23,368	21,241.3
Gross profit	1,371.3	1,314.2	3,968.2	3,943.3
Selling, general and administrative	(915.5)	(841.6)	(2,587.6)	(2,472.4)
Operating income	415.6	461.9	1,278.1	1,451.5
Operating segments | Financing Operations
Segment Reporting Information [Line Items]
Selling, general and administrative	(9.2)	(8.1)	(27.3)	(22.6)
Interest, fee, and lease income	72.4	32.8	190.3	82.2
Interest expense	(42.5)	(13.3)	(125.5)	(23.3)
Total interest margin	29.9	19.5	64.8	58.9
Total pre-provision income	20.6	11.4	37.5	36.3
Provision expense	(23.1)	(14.5)	(75)	(25.5)
Depreciation and amortization	(2)	(1.5)	(6.3)	(7.1)
Financing operations (loss) income	(4.4)	(4.6)	(43.8)	3.7
Corporate and other
Segment Reporting Information [Line Items]
Income before income taxes	64.7	87.4	129.5	181.1
Segment reconciling items
Segment Reporting Information [Line Items]
Depreciation and amortization	(50.8)	(40.5)	(146.4)	(115)
Other interest expense	(58.5)	(36.3)	(141.5)	(90.8)
Other income (expense), net	$ (5.3)	$ (12.2)	$ 6.8	$ (36.6)