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Segment and Geographic Information
 3 Months Ended
Mar. 31, 2015
Segment Reporting [Abstract]  
Segment and Geographic Information
We have four operating segments: Wholesale – North America; Wholesale – Europe; Self Service; and Specialty. 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 tables present our financial performance by reportable segment for the periods indicated (in thousands):
 
North America
 
Europe
 
Specialty
 
Eliminations
 
Consolidated
Three Months Ended March 31, 2015
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
1,046,079

 
$
487,346

 
$
240,487

 
$
—

 
$
1,773,912

Intersegment
94

 
—

 
735

 
(829
)
 
—

Total segment revenue
$
1,046,173

 
$
487,346

 
$
241,222

 
$
(829
)
 
$
1,773,912

Segment EBITDA
$
149,388

 
$
46,523

 
$
25,404

 
$
—

 
$
221,315

Depreciation and amortization
17,265

 
8,351

 
5,053

 
—

 
30,669

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


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 is calculated as EBITDA excluding restructuring and acquisition related expenses, change in fair value of contingent consideration liabilities and equity in earnings of unconsolidated subsidiaries. EBITDA, which is the basis for Segment EBITDA, is calculated as net income excluding 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 table below provides a reconciliation from Segment EBITDA to Net Income (in thousands):
 
Three Months Ended
 
March 31,
 
2015
 
2014
Segment EBITDA
$
221,315

 
$
205,097

Deduct:
 
 
 
Restructuring and acquisition related expenses (1)
6,488

 
3,321

Change in fair value of contingent consideration liabilities (2)
151

 
(1,222
)
Add:
 
 
 
Equity in earnings of unconsolidated subsidiaries
(1,908
)
 
(36
)
EBITDA
212,768

 
202,962

Depreciation and amortization
30,669

 
27,846

Interest expense, net
14,906

 
16,118

Loss on debt extinguishment
—

 
324

Provision for income taxes
60,098

 
54,021

Net income
$
107,095

 
$
104,653



(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,
 
2015
 
2014
Capital Expenditures
 
 
 
North America
$
15,403

 
$
18,921

Europe
7,869

 
13,451

Specialty
2,824

 
1,344

 
$
26,096

 
$
33,716


The following table presents assets by reportable segment (in thousands):
 
March 31,
 
December 31,
 
2015
 
2014
Receivables, net
 
 
 
North America
$
334,817

 
$
322,713

Europe
222,519

 
227,987

Specialty
87,701

 
50,722

Total receivables, net
645,037

 
601,422

Inventory
 
 
 
North America
784,753

 
826,429

Europe
354,936

 
402,488

Specialty
218,367

 
204,930

Total inventory
1,358,056

 
1,433,847

Property and Equipment, net
 
 
 
North America
454,583

 
456,288

Europe
121,212

 
128,309

Specialty
45,776

 
45,390

Total property and equipment, net
621,571

 
629,987

Other unallocated assets
2,897,802

 
2,908,236

Total assets
$
5,522,466

 
$
5,573,492


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.
The majority of our operations are conducted in the U.S. Our European operations are located in the U.K., the Netherlands, Belgium, France, Sweden, and Norway. 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, other alternative parts operations in Guatemala, and administrative support functions in India. 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,
 
2015
 
2014
Revenue
 
 
 
United States
$
1,194,944

 
$
1,107,870

United Kingdom
343,607

 
316,946

Other countries
235,361

 
200,961

 
$
1,773,912

 
$
1,625,777



The following table sets forth our tangible long-lived assets by geographic area (in thousands):
 
March 31,
 
December 31,
 
2015
 
2014
Long-lived Assets
 
 
 
United States
$
471,221

 
$
469,450

United Kingdom
90,152

 
92,813

Other countries
60,198

 
67,724

 
$
621,571

 
$
629,987



The following table sets forth our revenue by product category (in thousands):
 
Three Months Ended
 
March 31,
 
2015
 
2014
Aftermarket, other new and refurbished products
$
1,246,471

 
$
1,104,649

Recycled, remanufactured and related products and services
398,445

 
364,904

Other
128,996

 
156,224

 
$
1,773,912

 
$
1,625,777


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.