v2.4.0.8

Segment and Geographic Information | 9 Months Ended | 12 Months Ended
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Sep. 30, 2013 | Dec. 31, 2012
Segment Reporting [Abstract] |  |
Segment and Geographic Information | Segment and Geographic Information We have three operating segments: Wholesale – North America; Wholesale – Europe; and Self Service. Our operations in North America, which include our Wholesale – North America and Self Service operating segments, are aggregated into one reportable segment because they possess similar economic characteristics and have common products and services, customers, and methods of distribution. Our Wholesale – Europe operating segment, which includes Sator, is presented as a separate reportable segment. Therefore, we present our reportable segments on a geographic basis. The following table presents our financial performance, including revenue, earnings before interest, taxes, depreciation and amortization ("EBITDA"), and depreciation and amortization by reportable segment for the periods indicated (in thousands):
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Revenue |  |  |  |  |  |  |
North America | $ | 928,307 |  |  | $ | 835,324 |  |  | $ | 2,865,613 |  |  | $ | 2,547,743 |
Europe | 369,787 |  |  | 181,383 |  |  | 880,226 |  |  | 507,272 |
Total revenue | $ | 1,298,094 |  |  | $ | 1,016,707 |  |  | $ | 3,745,839 |  |  | $ | 3,055,015 |
EBITDA |  |  |  |  |  |  |
North America | $ | 108,314 |  |  | $ | 89,265 |  |  | $ | 362,281 |  |  | $ | 331,140 |
Europe | 38,088 |  |  | 20,079 |  |  | 95,920 |  |  | 55,669 |
Total EBITDA | $ | 146,402 |  |  | $ | 109,344 |  |  | $ | 458,201 |  |  | $ | 386,809 |
Depreciation and Amortization |  |  |  |  |  |  |
North America | $ | 16,417 |  |  | $ | 14,830 |  |  | $ | 48,555 |  |  | $ | 43,603 |
Europe | 5,740 |  |  | 3,298 |  |  | 13,313 |  |  | 7,971 |
Total depreciation and amortization | $ | 22,157 |  |  | $ | 18,128 |  |  | $ | 61,868 |  |  | $ | 51,574 |
EBITDA for our North American segment included gains of $0.5 million and $17.2 million during the three and nine months ended September 30, 2012 resulting from lawsuit settlements with certain of our aftermarket product suppliers as discussed in Note 7, "Commitments and Contingencies." Included within EBITDA of our European segment are losses of $0.8 million and $2.1 million during the three months ended September 30, 2013 and 2012, respectively, from the change in fair value of contingent consideration liabilities, primarily related to our 2011 ECP acquisition. During the nine month periods ended September 30, 2013 and 2012, our European segment recognized losses of $2.7 million and $1.9 million, respectively, related to the remeasurement of these contingent consideration liabilities. See Note 6, "Fair Value Measurements" for further information on our contingent consideration liabilities. For the three and nine months ended September 30, 2013, EBITDA for our European segment also included restructuring and acquisition related expenses of $1.6 million and $5.3 million, respectively, primarily related to our acquisitions of Sator and five automotive paint distribution businesses in the U.K. The table below provides a reconciliation from EBITDA to Net Income (in thousands):
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
EBITDA | $ | 146,402 |  |  | $ | 109,344 |  |  | $ | 458,201 |  |  | $ | 386,809 |
Depreciation and amortization | 22,157 |  |  | 18,128 |  |  | 61,868 |  |  | 51,574 |
Interest expense, net | 15,200 |  |  | 7,964 |  |  | 36,287 |  |  | 22,687 |
Loss on debt extinguishment | — |  |  | — |  |  | 2,795 |  |  | — |
Provision for income taxes | 35,600 |  |  | 29,204 |  |  | 123,492 |  |  | 113,511 |
Net income | $ | 73,445 |  |  | $ | 54,048 |  |  | $ | 233,759 |  |  | $ | 199,037 |
The key measure of segment profit or loss reviewed by our chief operating decision maker, who is our Chief Executive Officer, is 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 depreciation, amortization, interest and taxes. Loss on debt extinguishment is considered a component of interest in calculating EBITDA, as the write-off of debt issuance costs is similar to the treatment of debt issuance cost amortization. The following table presents capital expenditures, which includes additions to property and equipment, by reportable segment (in thousands):
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Capital Expenditures |  |  |  |  |  |  |
North America | $ | 14,960 |  |  | $ | 15,015 |  |  | $ | 48,662 |  |  | $ | 49,521 |
Europe | 6,015 |  |  | 4,006 |  |  | 12,464 |  |  | 11,115 |
| $ | 20,975 |  |  | $ | 19,021 |  |  | $ | 61,126 |  |  | $ | 60,636 |
The following table presents assets by reportable segment (in thousands):
| September 30, 2013 |  | December 31, 2012
Receivables, net |  |  |
North America | $ | 260,413 |  |  | $ | 241,627 |
Europe | 178,387 |  |  | 70,181 |
Total receivables, net | 438,800 |  |  | 311,808 |
Inventory |  |  |
North America | 725,213 |  |  | 750,565 |
Europe | 292,956 |  |  | 150,238 |
Total inventory | 1,018,169 |  |  | 900,803 |
Property and Equipment, net |  |  |
North America | 441,940 |  |  | 434,010 |
Europe | 89,957 |  |  | 60,369 |
Total property and equipment, net | 531,897 |  |  | 494,379 |
Other unallocated assets | 2,372,193 |  |  | 2,016,466 |
Total assets | $ | 4,361,059 |  |  | $ | 3,723,456 |
We report net trade 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 revenue is 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 |  | Nine Months Ended
| September 30, |  | September 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Revenue |  |  |  |  |  |  |
United States | $ | 868,052 |  |  | $ | 784,270 |  |  | $ | 2,672,545 |  |  | $ | 2,394,581 |
United Kingdom | 266,384 |  |  | 181,383 |  |  | 708,089 |  |  | 507,272 |
Other countries | 163,658 |  |  | 51,054 |  |  | 365,205 |  |  | 153,162 |
| $ | 1,298,094 |  |  | $ | 1,016,707 |  |  | $ | 3,745,839 |  |  | $ | 3,055,015 |
The following table sets forth our tangible long-lived assets by geographic area (in thousands):
| September 30, 2013 |  | December 31, 2012
Long-lived Assets |  |  |
United States | $ | 411,957 |  |  | $ | 408,244 |
United Kingdom | 69,309 |  |  | 60,369 |
Other countries | 50,631 |  |  | 25,766 |
| $ | 531,897 |  |  | $ | 494,379 |
The following table sets forth our revenue by product category (in thousands):
| Three Months Ended |  | Nine Months Ended
| September 30, |  | September 30,
| 2013 |  | 2012 |  | 2013 |  | 2012
Aftermarket, other new and refurbished products | $ | 793,925 |  |  | $ | 562,750 |  |  | $ | 2,199,009 |  |  | $ | 1,676,006 |
Recycled, remanufactured and related products and services | 349,411 |  |  | 317,877 |  |  | 1,060,681 |  |  | 967,250 |
Other | 154,758 |  |  | 136,080 |  |  | 486,149 |  |  | 411,759 |
| $ | 1,298,094 |  |  | $ | 1,016,707 |  |  | $ | 3,745,839 |  |  | $ | 3,055,015 |
Our North American reportable segment generates revenue from all of our product categories, while our European segment generates 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. | Segment and Geographic Information We have three operating segments: Wholesale – North America; Wholesale – Europe; and Self Service. Our operations in North America, which include our Wholesale – North America and Self Service operating segments, are aggregated into one reportable segment because they possess similar economic characteristics and have common products and services, customers, and methods of distribution. Our Wholesale – Europe operating segment, formed with our acquisition of ECP effective October 1, 2011, marks our entry into the European automotive aftermarket business, and is presented as a separate reportable segment. Although the Wholesale – Europe operating segment shares many of the characteristics of our North American operations, including types of products offered, distribution methods, and procurement, we have provided separate financial information as we believe this data would be beneficial to users in understanding our results. Therefore, we present our reportable segments on a geographic basis. The following table presents our financial performance, including revenue, earnings before interest, taxes, depreciation and amortization (“EBITDA”), and depreciation and amortization by reportable segment for the periods indicated (in thousands):
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
Revenue |  |  |  |  |
North America | $ | 3,426,858 |  |  | $ | 3,131,376 |  |  | $ | 2,469,881 |
Europe | 696,072 |  |  | 138,486 |  |  | — |
Total revenue | $ | 4,122,930 |  |  | $ | 3,269,862 |  |  | $ | 2,469,881 |
EBITDA |  |  |  |  |
North America | $ | 440,448 |  |  | $ | 405,924 |  |  | $ | 339,869 |
Europe | 70,099 |  |  | 12,144 |  |  | — |
Total EBITDA | $ | 510,547 |  |  | $ | 418,068 |  |  | $ | 339,869 |
Depreciation and Amortization |  |  |  |  |
North America | $ | 59,132 |  |  | $ | 52,481 |  |  | $ | 41,428 |
Europe | 11,033 |  |  | 2,024 |  |  | — |
Total depreciation and amortization | $ | 70,165 |  |  | $ | 54,505 |  |  | $ | 41,428 |
EBITDA during 2012 for our North American segment is inclusive of gains of $17.9 million resulting from lawsuit settlements with certain of our aftermarket product suppliers as discussed in Note 8, "Commitments and Contingencies." EBITDA for our North America segment also includes net gains of $2.0 million in each of the years ended December 31, 2012 and 2011 from the change in fair value of contingent consideration liabilities related to certain of our acquisitions. Included within EBITDA of our European segment are losses of $3.6 million and $0.6 million for the years ended December 31, 2012 and 2011, respectively, for the change in fair value of contingent consideration liabilities related to our ECP acquisition. See Note 7, "Fair Value Measurements," for further information on these changes in fair value of the contingent consideration obligations recorded in earnings during the periods. The table below provides a reconciliation from EBITDA to Income from Continuing Operations (in thousands):
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
EBITDA | $ | 510,547 |  |  | $ | 418,068 |  |  | $ | 339,869 |
Depreciation and amortization | 70,165 |  |  | 54,505 |  |  | 41,428 |
Interest expense, net | 31,215 |  |  | 22,447 |  |  | 28,316 |
Loss on debt extinguishment | — |  |  | 5,345 |  |  | — |
Provision for income taxes | 147,942 |  |  | 125,507 |  |  | 103,007 |
Income from continuing operations | $ | 261,225 |  |  | $ | 210,264 |  |  | $ | 167,118 |
The key measure of segment profit or loss reviewed by our chief operating decision maker, who is our Chief Executive Officer, is 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 depreciation, amortization, interest (including loss on debt extinguishment) and taxes. Loss on debt extinguishment is considered a component of interest in calculating EBITDA, as the write-off of debt issuance costs is similar to the treatment of debt issuance cost amortization. The following table presents capital expenditures, which includes additions to property and equipment, by reportable segment (in thousands):
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
Capital Expenditures |  |  |  |  |
North America | $ | 73,331 |  |  | $ | 84,856 |  |  | $ | 61,438 |
Europe | 14,924 |  |  | 1,560 |  |  | — |
| $ | 88,255 |  |  | $ | 86,416 |  |  | $ | 61,438 |
The following table presents assets by reportable segment (in thousands):
| December 31,
| 2012 |  | 2011 |  | 2010
Receivables, net |  |  |  |  |
North America | $ | 241,627 |  |  | $ | 230,871 |  |  | $ | 191,085 |
Europe | 70,181 |  |  | 50,893 |  |  | — |
Total receivables, net | 311,808 |  |  | 281,764 |  |  | 191,085 |
Inventory |  |  |  |  |
North America | 750,565 |  |  | 636,145 |  |  | 492,688 |
Europe | 150,238 |  |  | 100,701 |  |  | — |
Total inventory | 900,803 |  |  | 736,846 |  |  | 492,688 |
Property and Equipment, net |  |  |  |  |
North America | 434,010 |  |  | 380,282 |  |  | 331,312 |
Europe | 60,369 |  |  | 43,816 |  |  | — |
Total property and equipment, net | 494,379 |  |  | 424,098 |  |  | 331,312 |
Other unallocated assets | 2,016,466 |  |  | 1,756,996 |  |  | 1,284,424 |
Total assets | $ | 3,723,456 |  |  | $ | 3,199,704 |  |  | $ | 2,299,509 |
We report net trade 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, which we started with the acquisition of ECP in the fourth quarter of 2011, are located in the U.K. Our operations in other countries include recycled and aftermarket operations in Canada, engine remanufacturing and bumper refurbishing operations in Mexico, an aftermarket parts distribution facility in Taiwan, and other alternative parts operations in Guatemala and Costa Rica. The following table sets forth our revenue by geographic area (in thousands):
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
Revenue |  |  |  |  |
United States | $ | 3,209,024 |  |  | $ | 2,952,620 |  |  | $ | 2,366,224 |
United Kingdom | 696,072 |  |  | 138,486 |  |  | — |
Other countries | 217,834 |  |  | 178,756 |  |  | 103,657 |
| $ | 4,122,930 |  |  | $ | 3,269,862 |  |  | $ | 2,469,881 |
The following table sets forth our tangible long-lived assets by geographic area (in thousands):
| December 31,
| 2012 |  | 2011
Long-lived Assets |  |  |
United States | $ | 408,244 |  |  | $ | 360,961 |
United Kingdom | 60,369 |  |  | 43,816 |
Other countries | 25,766 |  |  | 19,321 |
| $ | 494,379 |  |  | $ | 424,098 |
The following table sets forth our revenue by product category (in thousands):
| Year Ended December 31,
| 2012 |  | 2011 |  | 2010
Aftermarket, other new and refurbished products | $ | 2,286,853 |  |  | $ | 1,634,003 |  |  | $ | 1,236,806 |
Recycled, remanufactured and related products and services | 1,277,023 |  |  | 1,115,088 |  |  | 888,320 |
Other | 559,054 |  |  | 520,771 |  |  | 344,755 |
| $ | 4,122,930 |  |  | $ | 3,269,862 |  |  | $ | 2,469,881 |
All of the product categories include revenue from our North American reportable segment, while our European segment, which is composed of ECP, an automotive aftermarket products distributor, currently generates revenue only 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. With our acquisition of a precious metals refining and reclamation business in the second quarter of 2012, revenue from other sources also includes the sales of precious metals harvested from various components, including certain of our salvage vehicle parts.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 131 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8380-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8933-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8538-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8844-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8864-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8981-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9054-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9031-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8924-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e9038-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8906-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8971-108599 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=6534315&loc=d3e8595-108599 + Details
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