v3.24.2
Revenue Recognition
 6 Months Ended
Jun. 30, 2024
Revenue Recognition [Abstract]  
Revenue Recognition Revenue Recognition
Disaggregated Revenue

We report revenue in two categories: (i) parts and services and (ii) other.

Parts revenue is generated from the sale of vehicle products including replacement parts, components and systems used in the repair and maintenance of vehicles and specialty products and accessories to improve the performance, functionality and appearance of vehicles. Services revenue includes (i) additional services that are generally billed concurrently with the related product sales, such as the sale of service-type warranties, (ii) fees for admission to our self service yards, and (iii) diagnostic and repair services.

For Wholesale - North America and Self Service, vehicle replacement products include sheet metal collision parts such as doors, hoods, and fenders; bumper covers; head and tail lamps; mirrors; grilles; wheels; and large mechanical items such as engines and transmissions. For Europe, and to a lesser extent for Wholesale - North America, vehicle replacement products include a wide variety of small mechanical products such as brake pads, discs and sensors; clutches; electrical products such as spark plugs and batteries; steering and suspension products; filters; and oil and automotive fluids. Additionally, in both our Wholesale - North America and Europe segments, we sell paint and paint related consumables for refinishing vehicles. For our Specialty operations, we serve seven product segments: truck and off-road; speed and performance; recreational vehicles; towing; wheels, tires and performance handling; marine; and miscellaneous accessories.

Other revenue includes sales of scrap and precious metals (platinum, palladium, and rhodium), bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from furnace operations. We derive scrap metal and other precious metals from several sources in both our Wholesale - North America and Self Service segments, including vehicles that have been used in our recycling operations and vehicles from original equipment manufacturers ("OEMs") and other entities that contract with us for secure disposal of "crush only" vehicles. Revenue from the sale of hulks in our Wholesale - North America and Self Service segments is recognized based on a price per ton of delivered material when the customer (processor) collects the scrap.

The following table sets forth our revenue disaggregated by category and reportable segment (in millions):

Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Wholesale - North America$1,398 $1,121 $2,820 $2,269 
Europe1,633 1,633 3,270 3,181 
Specialty466 442 888 838 
Self Service 55 63 109 123 
Parts and services3,552 3,259 7,087 6,411 
Wholesale - North America75 78 153 159 
Europe6 5 13 12 
Self Service78 106 161 215 
Other159 189 327 386 
Total revenue$3,711 $3,448 $7,414 $6,797 

Variable Consideration

Amounts related to variable consideration on our Unaudited Condensed Consolidated Balance Sheets are as follows (in millions):
 ClassificationJune 30, 2024December 31, 2023
Return assetPrepaid expenses and other current assets$70 $68 
Refund liabilityRefund liability134 132 
Variable consideration reserveReceivables, net of allowance for credit losses130 155 
Revenue by Geographic Area

Our net sales are attributed to geographic area based on the location of the selling operation. The following table sets forth our revenue by geographic area (in millions):
Three Months Ended June 30,Six Months Ended June 30,
 2024202320242023
Revenue
United States$1,769$1,690$3,564 $3,371 
Germany445436870 852 
United Kingdom423422868 837 
Other countries1,0749002,112 1,737 
Total revenue$3,711$3,448$7,414 $6,797