Financial Analysis

ACQUISITIONS In 2025, we completed the following acquisitions: In January 2025, Stohlman Subaru in Virginia. In March 2025, Elk Grove Subaru in California. In June 2025, Collierville Mercedes-Benz in Tennessee. In June 2025, Jackson Mercedes-Benz in Mississippi. In August 2025, Manchester Renault and Dacia in the United Kingdom. In September 2025, Acura of Palm Beach and West Palm Beach Hyundai and Genesis in Florida. In October 2025, Stivers Decatur Subaru in Georgia. In October 2025, Anaheim Hyundai, Garden Grove Hyundai and Huntington Beach Hyundai in California. In October 2025, Hatfields Jaguar & Land Rover Motor Group in the United Kingdom. In November 2025, Santa Monica Audi and Beverly Hills Porsche in California. In December 2025, Fines Ford Lincoln in Canada. Revenue and operating income contributed by the 2025 acquisitions subsequent to the date of acquisition were as follows: Year Ended December 31, ($ in millions) 2025 Revenue $ 464.9 Operating income 16.4 In 2024, we completed the following acquisitions: In January 2024, Pendragon PLCs Fleet Management and Motor Divisions in the United Kingdom. In February 2024, Carousel Motor Group in Minnesota and Wisconsin. In May 2024, Pine View Hyundai Store in Ontario, Canada. In June 2024, Sunrise Chevrolet Buick GMC at Collierville and Sunrise Buick GMC at Wolfchase in Tennessee. In September 2024, Duval Honda, Duval Acura, and Gainesville Subaru in Florida. In December 2024, Hyundai of Leicester in the United Kingdo …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES 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 Consolidated Balance Sheets; 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 to 25 or more years. The exercise of lease renewal options is at our sole discretion. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. 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. We rent or sublease certain real estate to third parties. The table below presents the lease-related liabilities and finance lease right-of-use assets recorded on the Consolidated Balance Sheets: December 31, ($ in millions) 2025 2024 Operating lease liabilities: Current portion included in accrued liabilities $ 103.2 $ 97.6 Non-current operating lease li …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

CREDIT FACILITIES AND LONG-TERM DEBT Below is a summary of our outstanding balances on credit facilities and long-term debt: December 31, ($ in millions) Maturity Dates 2025 2024 Long-term debt: Used and service loaner vehicle inventory financing commitments Various dates through Feb 2029 $ 1,043.0 $ 975.3 Revolving lines of credit Various dates through Feb 2029 1,570.8 1,633.2 Warehouse facilities Various dates through Dec 2027 1,251.0 834.0 Non-recourse notes payable Various dates through Mar 2033 2,473.9 2,109.3 4.625% Senior notes due 2027 Dec 2027 400.0 400.0 3.875% Senior notes due 2029 Jun 2029 800.0 800.0 5.500% Senior notes due 2030 Oct 2030 600.0 4.375% Senior notes due 2031 Jan 2031 550.0 550.0 Real estate mortgages, finance lease obligations, and other debt Various dates through Oct 2045 1,152.1 1,085.9 Total long-term debt 9,840.8 8,387.7 Less: unamortized debt issuance costs (27.8) (25.1) Less: current maturities (net of current debt issuance costs) (133.9) (192.1) Long-term debt, net $ 9,679.1 $ 8,170.5 Credit Facilities US Bank Syndicated Credit Facility On August 6, 2025 we amended our existing syndicated credit facility (USB credit facility), comprised of 20 financial institutions, including seven manufacturer-affiliated finance companies, maturing February 23, 2029. The amendment increased the total financing commitment and the amount to which the commitment could be further expanded. This USB credit facility provides for a total financing commitment of $6. …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

SHARE-BASED COMPENSATION PLANS Employee Stock Purchase Plan The 2009 Employee Stock Purchase Plan (ESPP) allows for the issuance of 3.0 million shares of our common stock. The ESPP is intended to qualify as an Employee Stock Purchase Plan under Section 423 of the Internal Revenue Code of 1986, as amended, and is administered by the Compensation Committee of the Board. As of December 31, 2025, 817,691 shares were available for purchase pursuant to the ESPP. Eligible team members are entitled to allocate up to 10% of their base pay for the purchase of stock, up to $25,000 of fair market value of our common stock annually. The purchase price is equal to 85% of the fair market value at the end of the purchase period. Compensation expense related to our ESPP is calculated based on the 15% discount from the per share market price on the date of grant. For the year ended December 31, 2025, 103,075 shares were purchased pursuant to the ESPP at a weighted average price per share of $270.18, with weighted average per share discount from market value of $47.69. Following is information regarding our ESPP: Year Ended December 31, 2025 2024 2023 Cash received related to ESPP purchases ($ in millions) $ 27.9 $ 27.1 $ 29.3 Tax deductions associated with ESPP disqualifying dispositions ($ in millions) $ 2.9 $ 3.5 $ 3.9 Weighted average per share discount for compensation expense recognized $ 47.69 $ 44.75 $ 41.58 Stock Incentive Plan During 2025, we registered an additional 1.16 million shar …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

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 cash, restricted cash, cash equivalents, 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 money market securities, which include restricted cash from collections on finance receivables, recorded as a component of Cash, restricted cash, and cash equivalents in our Consolidated Balance Sheets, as well as restricted cash on deposit in reserve accounts, recorded as a component of Other non-current assets in our Consolidated Balance Sheets. These money market securities consist of highly liquid investments with original maturities of three months or less and are classified as Level 1. We have investments consisting of equity securities, available for sale debt securities, and equity method investment with a fair value election. We ca …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

GOODWILL AND FRANCHISE VALUE The following is a roll-forward of goodwill: ($ in millions) Vehicle Operations Financing Operations Consolidated Balance as of December 31, 2023 $ 1,913.0 $ 17.6 $ 1,930.6 Adjustments to purchase price allocations 2 47.7 47.7 Additions through acquisitions 1 167.0 167.0 Reductions through divestitures (22.1) (22.1) Currency translation (6.3) (1.4) (7.7) Balance as of December 31, 2024 2,099.3 16.2 2,115.5 Additions through acquisitions 3 383.1 383.1 Reductions through divestitures (39.2) (39.2) Currency translation 16.5 0.8 17.3 Balance as of December 31, 2025 $ 2,459.7 $ 17.0 $ 2,476.7 (1) Our purchase price allocations (PPA) for the 2023 acquisitions were finalized in 2024. As a result, we added $146.6 million of goodwill. Preliminary PPA for a portion of our 2024 acquisitions resulted in adding $20.4 million of goodwill. (2) Our PPA for a portion of the 2023 acquisitions recognized in 2023 was adjusted and finalized in 2024 upon the completion of our fair value adjustments for assumed contract liabilities, acquired loan portfolio, and contingent consideration, adding $47.7 million of goodwill. (3) Our PPA for the 2024 acquisitions were finalized in 2025. As a result, we added $348.2 million of goodwill. Preliminary PPA for a portion of our 2025 acquisitions resulted in adding $34.9 million of goodwill. Our PPA for the remaining 2025 acquisitions is preliminary and goodwill is not yet allocated to our segments. These amounts are included as a c …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

INCOME TAXES Income Before Income Taxes Income from continuing operations before income tax expense: Year Ended December 31, ($ in millions) 2025 2024 2023 United States of America $ 1,087.0 $ 1,001.3 $ 1,273.2 Foreign 21.4 70.0 89.1 Total income from continuing operations before income tax expense $ 1,108.4 $ 1,071.3 $ 1,362.3 Income Tax Provision The income tax provision was as follows: Year Ended December 31, ($ in millions) 2025 2024 2023 Current: U.S. Federal $ 114.6 $ 164.2 $ 207.5 U.S. State and local 53.2 48.7 71.7 Foreign 20.8 1.8 7.4 Total current provision for income taxes 188.6 214.7 286.6 Deferred: U.S. Federal 77.5 12.4 43.7 U.S. State and local 11.1 12.5 8.1 Foreign 5.3 15.4 12.2 Total deferred provision for income taxes 93.9 40.3 64.0 Total provision for income taxes $ 282.5 $ 255.0 $ 350.6 At December 31, 2025, we had income taxes receivable of $23.5 million included as a component of Other current assets in our Consolidated Balance Sheets. At December 31, 2024, we had income taxes receivable of $10.4 million included as a component of other current assets in our Consolidated Balance Sheet. The reconciliation between amounts computed using the federal income tax rate of 21% and our income tax provision is shown in the following tabulation: Year Ended December 31, ($ in millions) 2025 % 2024 % 2023 % Federal tax provision at statutory rate $ 232.9 21.0 % $ 225.1 21.0 % $ 286.0 21.0 % Domestic U.S. Federal Tax credits Discount on transferable credits (5.3) (0.5 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements In December 2023, the FASB issued ASU 2023-09 related to improvements to income tax disclosures. The amendments in this update require enhanced jurisdictional and other disaggregated disclosures for the effective tax rate reconciliation and income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024. We adopted this pronouncement and made the necessary updates to our disclosures for the year ending December 31, 2025, and, aside from these disclosure changes, the amendments did not have a material effect on our financial statements. In November 2024, the FASB issued ASU 2024-03 related to the disaggregation of certain income statement expenses. The amendments in this update require public entities to disclose incremental information related to purchases of inventory, team member compensation, and depreciation, which will provide investors the ability to better understand entity expenses and make their own judgments about entity performance. The amendments in this update are effective for fiscal years beginning after December 15, 2026. We plan to adopt this pronouncement and make the necessary updates to our disclosures for the year ending December 31, 2027, and, aside from these disclosure changes, we do not expect the amendments to have a material effect on our financial statements.

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RETIREMENT PLANS AND POSTRETIREMENT BENEFITS Company-Sponsored Defined Contribution 401(k) Plan We have a defined contribution 401(k) plan and trust covering substantially all full-time team members. Contributions of $46.8 million, $46.1 million, and $44.0 million were recognized for the years ended December 31, 2025, 2024, and 2023, respectively. Team members may contribute to the plan if they meet certain eligibility requirements. Executive Management Non-Qualified Deferred Compensation and Supplemental Executive Retirement Plan We offer a non-qualified deferred compensation and supplemental executive retirement plan (SERP) to provide certain team members the ability to accumulate assets for retirement on a tax deferred basis. We may, depending on position, also make discretionary contributions to the SERP. These discretionary contributions could vest immediately or over a period of up to five years based on the team members age. Additionally, a participant may defer a portion of his or her compensation and receive the deferred amount upon certain events, including termination or retirement. The following is a summary related to our SERP: Year Ended December 31, ($ in millions) 2025 2024 2023 Compensation expense $ 1.1 $ 1.2 $ 1.3 Total discretionary contribution $ 1.2 $ 1.4 $ 1.7 Guaranteed annual return 5.50 % 5.15 % 5.00 % As of December 31, 2025 and 2024, the balance due to participants was $84.5 million and $77.7 million, respectively, and was included as a component o …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

SEGMENTS As of December 31, 2025, we had two reportable segments: Vehicle Operations and Financing Operations. Our Vehicle Operations consists of all aspects of our auto merchandising and service operations, including our retail automotive, recreational vehicles, and motorcycle franchises that sell new vehicles, used vehicles, parts, repair and maintenance services, and vehicle F&I products. Vehicle Operations excludes 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 activity is reported under Corporate and Other, including corporate personnel costs, certain unallocated reserves, internal charges, and other unallocated corporate overhead expenses. Internal charges consist of corporate expense allocations which increase segment income for Corporate and Other while decreasing segment income for the other operating segments. These internal corporate expense allocations are used to increase comparability of our dealerships and reflect the capital burden a stand-alone dealership would experience. Examples of these internal allocations include internal rent expense, internal floor plan financing charges, and internal fees charged to offset team members within our corporate headquarters that perform certain dealership functions. The reportable segments identified above represent our business activities for which discrete financial in …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Organization and Business We are the worlds largest global automotive retailer, operating a unique omnichannel ecosystem of comprehensive sales, financing, leasing, and aftersales. In 2025, we were ranked 124 on the Fortune 500. As of December 31, 2025, we operated 455 locations across the United States, the United Kingdom, and Canada representing 54 brands. We connect customers to their mobility needs through seamlessly integrated physical locations, e-commerce platforms, and tailored solutions including captive finance and fleet management. We focus on creating customer loyalty to maximize the potential of each store. This approach enables us to unlock sustained growth by delivering personalized experiences wherever, whenever, and however customers desire . Basis of Presentation The accompanying Consolidated Financial Statements reflect the results of operations, the financial position, and the cash flows for Lithia Motors, Inc. and its directly and indirectly wholly-owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation. Cash, Restricted Cash, and Cash Equivalents Cash and cash equivalents are defined as cash on hand, cash in bank accounts without restrictions, and highly liquid investments with original maturities of three months or less. Restricted cash consisted of collections of principal, interest and fee payments on finance receivables that are restricted for repayment on borrowi …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

EQUITY Common Stock The shares of common stock are not convertible into any other series or class of our securities. Holders of common stock are entitled to one vote for each share held of record. Repurchases of Common Stock Repurchases of our common stock occurred under repurchase authorizations granted by our Board and related to shares withheld as part of the vesting of RSUs. Share repurchases under our authorization were as follows: Repurchases Occurring in 2025 Cumulative Repurchases as of December 31, 2025 Shares Average Price Shares Average Price Share repurchase authorization 3,019,951 $ 313.73 11,296,964 $ 223.82 As of December 31, 2025, we had $621.6 million available for repurchases pursuant to our share repurchase authorization. In addition, during 2025, we repurchased 36,822 shares at an average price of $356.74 per share, for a total of $13.1 million, related to tax withholdings associated with the vesting of RSUs. The repurchase of shares related to tax withholdings associated with share-based awards does not reduce the number of shares available for repurchase as approved by our Board. The following is a summary of our repurchases: Year Ended December 31, 2025 2024 2023 Shares repurchased pursuant to repurchase authorizations 3,019,951 1,229,503 142,729 Total purchase price ($ in millions) 1 $ 947.5 $ 348.0 $ 34.4 Average purchase price per share $ 313.73 $ 283.02 $ 240.81 Shares repurchased in association with tax withholdings on the vesting of RSUs 36,822 45 …

StockholdersEquityNoteDisclosureTextBlock · excerpt; the full note is in the filing

ACQUISITIONS In the first six months of 2026 , we completed the following acquisitions: In February 2026, Mercedes-Benz of Medford in Oregon. In March 2026, Toyota of Gallatin in Tennessee. In March 2026, Read Motor Group in the United Kingdom. In April 2026, Agility Fleet in the United Kingdom. In May 2026, Kia of North Tucson in Arizona. In May 2026, Preston, Chester & Derby Group 1 Jaguar Land Rover in the United Kingdom. The 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. Revenue and operating income contributed by the 2026 acquisitions subsequent to the date of acquisition were as follows (in millions): Six Months Ended June 30, 2026 Revenue $ 103.1 Operating income 5.0 The following tables summarize the consideration paid for the 2026 acquisitions and the PPA for identified assets acquired and liabilities assumed as of the acquisition date: (In millions) Consideration Cash paid, net of cash acquired $ 221.7 Total consideration transferred $ 221.7 (In millions) Assets Acquired and Liabilities Assumed Accounts receivables, net $ 3.9 Inventories, net 37.7 Property and equipment 86.9 Other assets 139.8 Floor plan notes payable assumed (12.1) Trade payables (2.5) Finance lease obligations assumed (23.3) Other liabilities and deferred revenue (8.7) Total net assets acquired and liabilities …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

COMMITMENTS AND CONTINGENCIES Contract Liabilities We retain the obligation for various contracts sold to our customers and assumed in acquisitions. These amounts are recorded as a contract liability. At the time of sale, we defer the full sale price and recognize the revenue based on the rate at which we expect to incur further costs. The amount of revenue recognized related to aftersales contract liabilities is calculated, net of cancellations, using an input method, which most closely depicts performance of the contracts. Our contract liability balances associated with aftersales were $532.7 million and $501.5 million as of June 30, 2026 , and December 31, 2025 , respectively; we recognized $33.5 million and $68.3 million of revenue in the three and six months ended June 30, 2026 , related to our opening contract liability balances associated with aftersales. The amount of revenue recognized related to operating lease vehicle contract liabilities is recognized evenly over the life of the related lease contracts. Our contract liability balances associated with operating lease vehicles were $144.7 million and $136.4 million as of June 30, 2026 , and December 31, 2025 , respectively; we recognized $14.5 million and $32.2 million of revenue in the three and six months ended June 30, 2026 , related to our opening contract liability balances associated with operating lease vehicles. Our contract liability balances are included in Accrued liabilities and Deferred revenue. Litigat …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

DEBT Credit Facilities US Bank Syndicated Credit Facility On February 27, 2026, we amended our existing syndicated credit facility with US Bank as agent ( USB credit facility), now comprised of 18 financial institutions, including six manufacturer-affiliated finance companies, maturing February 27, 2031 . The amendment extended the maturity date, converted the existing used vehicle floorplan and service loaner floorplan facilities to VIN-specific facilities, eliminated the credit spread adjustment of 0.10% , and reduced the margin on used vehicle floor plan financing from 1.40% to 1.20% . This USB credit facility provides for a total financing commitment of $6.5 billion , which may be further expanded, subject to lender approval and the satisfaction of other conditions, up to a total of $7.0 billion . The allocation of the financing commitment is for up to $2.7 billion in new vehicle inventory floorplan financing, up to $1.3 billion in used vehicle inventory floorplan financing, up to $150 million in service loaner vehicle floorplan financing, and up to $2.4 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 50% of the amount of the aggregate commitment. All borrowings from, and repayments to, our lending group are presented in the Consolidated Statements of Cash Flow …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

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 cash, restricted cash, cash equivalents, 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 money market securities, which include restricted cash from collections on finance receivables, recorded as a component of Cash, restricted cash, and cash equivalents in our Consolidated Balance Sheets, as well as restricted cash on deposit in reserve accounts, recorded as a component of Other non-current assets in our Consolidated Balance Sheets. These money market securities consist of highly liquid investments with original maturities of three months or less and are classified as Level 1. We have investments consisting of equity securities, available for sale debt securities, and equity method investments with a fair value election. We c …

FairValueDisclosuresTextBlock · excerpt; the full note is in the filing

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, 2024 $ 2,099.3 $ 16.2 $ 2,115.5 Additions through acquisitions 1 383.1 383.1 Reductions through disposals (39.2) (39.2) Currency translation 16.5 0.8 17.3 Balance as of December 31, 2025 2,459.7 17.0 2,476.7 Additions through acquisitions 2 71.1 71.1 Reductions through disposals (2.8) (2.8) Currency translation (5.6) (0.6) (6.2) Balance as of June 30, 2026 $ 2,522.4 $ 16.4 $ 2,538.8 1 Our purchase price allocations ( PPA ) for the 2024 acquisitions were finalized in 2025 . As a result, we added $348.2 million of goodwill. Preliminary PPA for a portion of our 2025 acquisitions resulted in adding $34.9 million of goodwill. Our PPA for the remaining 2025 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 12 Acquisitions . 2 Our PPA for a portion of the 2025 acquisitions were finalized in 2026 . As a result, we added $71.1 million of goodwill. Our PPA for the remainder of the 2025 acquisitions and 2026 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 12 Acquisitions . The changes in the carrying amounts of franchise value are a …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

In November 2024, the FASB issued ASU 2024-03 related to the disaggregation of certain income statement expenses. The amendments in this update require public entities to disclose incremental information related to purchases of inventory, team member compensation, and depreciation, which will provide investors the ability to better understand entity expenses and make their own judgments about entity performance. The amendments in this update are effective for fiscal years beginning after December 15, 2026. We plan to adopt this pronouncement and make the necessary updates to our disclosures for the year ending December 31, 2027, and, aside from these disclosure changes, we do not expect the amendments to have a material effect on our financial statements. In December 2025, the FASB issued ASU 2025-11 that included amendments to improve the organization of required interim disclosures and clarified the scope of their applicability. The amendments in this update are effective for fiscal years beginning after December 15, 2027. We plan to adopt this pronouncement and make the necessary updates to our disclosures for the year ending December 31, 2028, and, aside from these disclosure changes, we do not expect the amendments to have a material effect on our financial statements. In December 2025, the FASB issued ASU 2025-12 intended to make financial reporting more straightforward by addressing 33 specific issues within the FASB ASC . The amendments in this update are effective fo …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

RETIREMENT PLANS AND POSTRETIREMENT BENEFITS Company-Sponsored Defined Benefit Pension Plan We maintain two company-sponsored defined benefit plans applicable to a portion of salaried past and present team members, which are closed to future accrual. Net Periodic (Benefit) Cost Interest cost represents the increase in the projected benefit obligation, which is a discounted amount, due to the passage of time. The expected return on plan assets reflects the computed amount of current-year earnings from the investment of plan assets using an estimated long-term rate of return. Three Months Ended June 30, Six Months Ended June 30, (In millions) 2026 2025 2026 2025 Interest cost $ 8.3 $ 8.4 $ 16.6 $ 16.8 Expected return on plan assets (8.9) (10.8) (17.9) (21.7) Amortization of net loss 0.1 0.2 Net periodic benefit $ (0.5) $ (2.4) $ (1.1) $ (4.9) During the six months ended June 30, 2026 , funding of pension plans was $4.0 million . For the remainder of 2026 , we estimate approximately $4.2 million of cash contributions . …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

SEGMENTS We operate in two reportable segments: Vehicle Operations and Financing Operations. Our Vehicle Operations consists of all aspects of our auto merchandising and aftersales operations, excluding financing provided by our Financing Operations. Our Financing Operations provides financing to customers buying and leasing retail vehicles from our Vehicle Operations, as well as leasing vehicles from our fleet management services provider. All other remaining unallocated corporate overhead expenses and internal charges are reported under Corporate and Other. We do not utilize asset information by segment for purposes of assessing performance or allocating resources and, as a result, we do not present such information. The reportable segments identified above represent our business activities for which discrete financial information is available and for which operating results are regularly provided and reviewed by our CODM to allocate resources and assess performance. Our CODM is our Chief Executive Officer. The CODM assesses segment performance using segment income, which is measured as net segment profit before taxes on a U.S. GAAP basis. We do not regularly provide total asset information by segment to our CODM or utilize the information for purposes of assessing performance or allocating resources and, as a result, we do not present such information. Certain financing operations asset information including total managed receivables are used by the financing operations se …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

EQUITY Repurchases of Common Stock Repurchases of our common stock occurred under a repurchase authorization granted by our Board and related to shares withheld as part of the vesting of RSU s. In May 2026, our Board approved an additional $500 million repurchase authorization of our common stock. This authorization, when added to the amounts previously authorized by the Board for repurchase, brings the total authorizations up to $3.7 billion . Share repurchases under our authorizations were as follows: Repurchases Occurring in 2026 Cumulative Repurchases as of June 30, 2026 Shares Average Price 1 Shares Average Price Share Repurchase Authorization 1,795,491 $ 279.07 13,092,455 $ 231.39 1 Price excludes excise taxes imposed under the Inflation Reduction Ac t of $4.8 million for th e six months ended June 30, 2026 . As of June 30, 2026 , we had $620.5 million available for repurchases pursuant to our share repurchase authorizations from our Board in 2026 and prior years. In addition, during 2026 , we repurchased 115,286 shares at an average price of $332.28 per share, for a total of $38.3 million , related to tax withholding associated with the vesting of RSU s. The repurchase of shares related to tax withholding associated with stock awards does not reduce the number of shares available for repurchase as approved by our Board .

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