v2.4.0.8
Segment and Geographic Information
 3 Months Ended
Mar. 31, 2014
Segment Reporting [Abstract]  
Segment and Geographic Information
Segment and Geographic Information
We have four operating segments: Wholesale – North America; Wholesale – Europe; Self Service; and Specialty. Our Specialty operating segment was formed with our January 3, 2014 acquisition of Keystone Specialty, as discussed in Note 8, "Business Combinations." Our Wholesale – North America and Self Service operating segments are aggregated into one reportable segment, North America, because they possess similar economic characteristics and have common products and services, customers, and methods of distribution. Therefore, we present three reportable segments: North America, Europe and Specialty.
The following table presents our financial performance by reportable segment for the periods indicated (in thousands):

 
North America
 
Europe
 
Specialty
 
Eliminations
 
Consolidated
Three Months Ended March 31, 2014
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
1,029,266

 
$
419,714

 
$
176,797

 
$
—

 
$
1,625,777

Intersegment
33

 
—

 
226

 
(259
)
 
—

Total segment revenue
$
1,029,299

 
$
419,714

 
$
177,023

 
$
(259
)
 
$
1,625,777

Segment EBITDA
$
146,138

 
$
41,155

 
$
17,804

 
$
—

 
$
205,097

Depreciation and amortization
17,145

 
6,966

 
3,735

 
—

 
27,846

Three Months Ended March 31, 2013
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
983,388

 
$
212,609

 
$
—

 
$
—

 
$
1,195,997

Intersegment
—

 
—

 
—

 
—

 
—

Total segment revenue
$
983,388

 
$
212,609

 
$
—

 
$
—

 
$
1,195,997

Segment EBITDA
$
136,067

 
$
25,664

 
$
—

 
$
—

 
$
161,731

Depreciation and amortization
15,887

 
3,153

 
—

 
—

 
19,040


The key measure of segment profit or loss reviewed by our chief operating decision maker, who is our Chief Executive Officer, is Segment EBITDA. Segment EBITDA includes revenue and expenses that are controllable by the segment. Corporate and administrative expenses are allocated to the segments based on usage, with shared expenses apportioned based on the segment's percentage of consolidated revenue. Segment EBITDA excludes restructuring and acquisition related expenses, depreciation, amortization, interest, change in fair value of contingent consideration liabilities, taxes and equity in earnings of unconsolidated subsidiaries. Loss on debt extinguishment is considered a component of interest in calculating Segment EBITDA, as the write-off of debt issuance costs is similar to the treatment of debt issuance cost amortization.
The table below provides a reconciliation from Segment EBITDA to Net Income (in thousands):
 
Three Months Ended
 
March 31,
 
2014
 
2013
Segment EBITDA
$
205,097

 
$
161,731

Deduct:
 
 
 
Restructuring and acquisition related expenses(1)
3,321

 
1,505

Change in fair value of contingent consideration liabilities (2)
(1,222
)
 
823

Add:
 
 
 
Equity in earnings of unconsolidated subsidiaries
(36
)
 
—

EBITDA
202,962

 
159,403

Depreciation and amortization
27,846

 
19,040

Interest expense, net
16,118

 
8,595

Loss on debt extinguishment
324

 
—

Provision for income taxes
54,021

 
47,176

Net income
$
104,653

 
$
84,592


(1) See Note 9, "Restructuring and Acquisition Related Expenses," for further information.
(2) See Note 6, "Fair Value Measurements," for further information on our contingent consideration liabilities.

The following table presents capital expenditures, which includes additions to property and equipment, by reportable segment (in thousands):
 
Three Months Ended ,
 
March 31,
 
2014
 
2013
Capital Expenditures
 
 
 
North America
$
18,921

 
$
17,564

Europe
13,451

 
3,897

Specialty
1,344

 
—

 
$
33,716

 
$
21,461


The following table presents assets by reportable segment (in thousands):
 
March 31,
2014
 
December 31,
2013
Receivables, net
 
 
 
North America
$
309,187

 
$
277,395

Europe
196,680

 
180,699

Specialty
71,345

 
—

Total receivables, net
577,212

 
458,094

Inventory
 
 
 
North America
748,913

 
748,167

Europe
341,398

 
328,785

Specialty
165,493

 
—

Total inventory
1,255,804

 
1,076,952

Property and Equipment, net
 
 
 
North America
447,368

 
447,528

Europe
109,605

 
99,123

Specialty
36,894

 
—

Total property and equipment, net
593,867

 
546,651

Other unallocated assets
2,782,945

 
2,437,077

Total assets
$
5,209,828

 
$
4,518,774


We report net receivables, inventories, and net property and equipment by segment as that information is used by the chief operating decision maker in assessing segment performance. These assets provide a measure for the operating capital employed in each segment. Unallocated assets include cash, prepaid and other current and noncurrent assets, goodwill, intangibles and income taxes.
Our operations are primarily conducted in the U.S. Our European operations are located in the U.K., the Netherlands, Belgium, and France. Our operations in other countries include recycled and aftermarket operations in Canada, engine remanufacturing and bumper refurbishing operations in Mexico, an aftermarket parts freight consolidation warehouse in Taiwan, and other alternative parts operations in Guatemala and Costa Rica. 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 thousands):
 
Three Months Ended
 
March 31,
 
2014
 
2013
Revenue
 
 
 
United States
$
1,107,870

 
$
889,341

United Kingdom
316,946

 
212,609

Other countries
200,961

 
94,047

 
$
1,625,777

 
$
1,195,997


The following table sets forth our tangible long-lived assets by geographic area (in thousands):
 
March 31,
2014
 
December 31,
2013
Long-lived Assets
 
 
 
United States
$
456,219

 
$
418,869

United Kingdom
88,420

 
77,827

Other countries
49,228

 
49,955

 
$
593,867

 
$
546,651


The following table sets forth our revenue by product category (in thousands):
 
Three Months Ended
 
March 31,
 
2014
 
2013
Aftermarket, other new and refurbished products
$
1,104,649

 
$
667,956

Recycled, remanufactured and related products and services
364,904

 
354,436

Other
156,224

 
173,605

 
$
1,625,777

 
$
1,195,997


Our North American reportable segment generates revenue from all of our product categories, while our European and Specialty segments generate revenue primarily from the sale of aftermarket products. Revenue from other sources includes scrap sales, bulk sales to mechanical remanufacturers (including cores) and sales of aluminum ingots and sows from our furnace operations.