v3.26.1
Revenue Recognition
3 Months Ended
Mar. 31, 2026
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 alternative parts and vehicle products including collision parts, which are typically exterior components used in the collision repair process to restore a vehicle's appearance and safety; hard parts, which are typically internal components that are either mechanical in nature or functional components that are replaced as part of routine maintenance; major mechanical parts; and specialty products and accessories, which are vehicle products that improve the performance, functionality and appearance of vehicles. Services revenue includes additional services that are generally billed concurrently with the related product sales, such as the sale of service-type warranties, and diagnostic and repair services.

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; all of which are typically acquired as byproducts of our salvage operations. Revenue from the sale of hulks in our North America segment 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 March 31,
 20262025
North America$1,341 $1,336 
Europe1,613 1,515 
Specialty408 393 
Parts and services3,362 3,244 
North America99 76 
Europe
Other107 83 
Total revenue$3,469 $3,327 

Variable Consideration

Amounts related to variable consideration on our Unaudited Condensed Consolidated Balance Sheets are as follows (in millions):
 ClassificationMarch 31, 2026December 31, 2025
Return assetPrepaid expenses and other current assets$67 $66 
Refund liabilityRefund liability126 122 
Variable consideration reserveReceivables, net of allowance for credit losses103 148 

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 March 31,
 20262025
Revenue
United States$1,569$1,545
Germany481426
United Kingdom427417
Other countries992939
Total revenue$3,469$3,327