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Segment and Geographic Information | 12 Months Ended
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Dec. 31, 2015
Segment Reporting [Abstract] |
Segment and Geographic Information | Segment and Geographic Information We have four operating segments: Wholesale – North America; Europe; Specialty; and Self Service. 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. Our reportable segments are organized based on a combination of geographic areas served and type of product lines offered. The reportable segments are managed separately as each business serves different customers (i.e. geographic in the case of North America and Europe and product type in the case of Specialty) and is affected by different economic conditions. 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
Year Ended December 31, 2015 |  |  |  |  |  |  |  |  |
Revenue: |  |  |  |  |  |  |  |  |
Third Party | $ | 4,145,998 |  |  | $ | 1,995,385 |  |  | $ | 1,051,250 |  |  | $ | — |  |  | $ | 7,192,633 |
Intersegment | 835 |  |  | 70 |  |  | 3,334 |  |  | (4,239 | ) |  | — |
Total segment revenue | $ | 4,146,833 |  |  | $ | 1,995,455 |  |  | $ | 1,054,584 |  |  | $ | (4,239 | ) |  | $ | 7,192,633 |
Segment EBITDA | $ | 547,405 |  |  | $ | 200,563 |  |  | $ | 106,561 |  |  | $ | — |  |  | $ | 854,529 |
Depreciation and amortization (1) | 70,369 |  |  | 36,446 |  |  | 21,377 |  |  | — |  |  | 128,192 |
Year Ended December 31, 2014 |  |  |  |  |  |  |  |  |
Revenue: |  |  |  |  |  |  |  |  |
Third Party | $ | 4,088,701 |  |  | $ | 1,846,155 |  |  | $ | 805,208 |  |  | $ | — |  |  | $ | 6,740,064 |
Intersegment | 589 |  |  | — |  |  | 1,807 |  |  | (2,396 | ) |  | — |
Total segment revenue | $ | 4,089,290 |  |  | $ | 1,846,155 |  |  | $ | 807,015 |  |  | $ | (2,396 | ) |  | $ | 6,740,064 |
Segment EBITDA | $ | 543,943 |  |  | $ | 167,155 |  |  | $ | 79,453 |  |  | $ | — |  |  | $ | 790,551 |
Depreciation and amortization (1) | 70,434 |  |  | 34,391 |  |  | 20,612 |  |  | — |  |  | 125,437 |
Year Ended December 31, 2013 |  |  |  |  |  |  |  |  |
Revenue: |  |  |  |  |  |  |  |  |
Third Party | $ | 3,802,929 |  |  | $ | 1,259,599 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,062,528 |
Intersegment | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total segment revenue | $ | 3,802,929 |  |  | $ | 1,259,599 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,062,528 |
Segment EBITDA | $ | 486,831 |  |  | $ | 141,756 |  |  | $ | — |  |  | $ | — |  |  | $ | 628,587 |
Depreciation and amortization (1) | 65,606 |  |  | 20,857 |  |  | — |  |  | — |  |  | 86,463 |
(1) Amounts presented include depreciation and amortization expense recorded within cost of goods sold. 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):
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
Segment EBITDA | $ | 854,529 |  |  | $ | 790,551 |  |  | $ | 628,587 |
Deduct: |  |  |  |  |
Restructuring and acquisition related expenses(1) | 19,511 |  |  | 14,806 |  |  | 10,173 |
Change in fair value of contingent consideration liabilities (2) | 454 |  |  | (1,851 | ) |  | 2,504 |
Add: |  |  |  |  |
Equity in earnings of unconsolidated subsidiaries | (6,104 | ) |  | (2,105 | ) |  | — |
EBITDA | 828,460 |  |  | 775,491 |  |  | 615,910 |
Depreciation and amortization - cost of goods sold | 6,072 |  |  | 4,718 |  |  | 5,494 |
Depreciation and amortization | 122,120 |  |  | 120,719 |  |  | 80,969 |
Interest expense, net | 57,342 |  |  | 63,947 |  |  | 50,825 |
Loss on debt extinguishment | — |  |  | 324 |  |  | 2,795 |
Provision for income taxes | 219,703 |  |  | 204,264 |  |  | 164,204 |
Net income | $ | 423,223 |  |  | $ | 381,519 |  |  | $ | 311,623 |
(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 by reportable segment (in thousands):
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
Capital Expenditures |  |  |  |  |
North America | $ | 72,048 |  |  | $ | 86,172 |  |  | $ | 66,288 |
Europe | 79,072 |  |  | 44,896 |  |  | 23,898 |
Specialty | 19,370 |  |  | 9,882 |  |  | — |
| $ | 170,490 |  |  | $ | 140,950 |  |  | $ | 90,186 |
The following table presents assets by reportable segment (in thousands):
| December 31,
| 2015 |  | 2014 |  | 2013
Receivables, net |  |  |  |  |
North America | $ | 314,743 |  |  | $ | 322,713 |  |  | $ | 277,395 |
Europe | 215,710 |  |  | 227,987 |  |  | 180,699 |
Specialty | 59,707 |  |  | 50,722 |  |  | — |
Total receivables, net | 590,160 |  |  | 601,422 |  |  | 458,094 |
Inventory |  |  |  |  |
North America | 847,787 |  |  | 826,429 |  |  | 748,167 |
Europe | 427,323 |  |  | 402,488 |  |  | 328,785 |
Specialty | 281,442 |  |  | 204,930 |  |  | — |
Total inventory | 1,556,552 |  |  | 1,433,847 |  |  | 1,076,952 |
Property and Equipment, net |  |  |  |  |
North America | 467,961 |  |  | 456,288 |  |  | 447,528 |
Europe | 175,455 |  |  | 128,309 |  |  | 99,123 |
Specialty | 53,151 |  |  | 45,390 |  |  | — |
Total property and equipment, net | 696,567 |  |  | 629,987 |  |  | 546,651 |
Other unallocated assets (1) | 2,804,558 |  |  | 2,810,483 |  |  | 2,356,361 |
Total assets (1) | $ | 5,647,837 |  |  | $ | 5,475,739 |  |  | $ | 4,438,058 |
(1) Prior year balances have been updated to reflect the adoption of two new accounting pronouncements in the fourth quarter of 2015 as described in Recent Accounting Pronouncements in Note 2, "Summary of Significant Accounting Policies". The adoption of these new accounting pronouncements resulted in a reclassification of $18.5 million of debt issuance costs from Other Assets to Long-term obligations, and a reclassification of $62.2 million of deferred tax assets to noncurrent deferred tax liabilities for the year ended December 31, 2013. 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, 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):
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
Revenue |  |  |  |  |
United States | $ | 4,831,875 |  |  | $ | 4,499,743 |  |  | $ | 3,544,360 |
United Kingdom | 1,382,432 |  |  | 1,321,786 |  |  | 981,585 |
Other countries | 978,326 |  |  | 918,535 |  |  | 536,583 |
| $ | 7,192,633 |  |  | $ | 6,740,064 |  |  | $ | 5,062,528 |
The following table sets forth our tangible long-lived assets by geographic area (in thousands):
| December 31,
| 2015 |  | 2014
Long-lived Assets |  |  |
United States | $ | 493,300 |  |  | $ | 469,450 |
United Kingdom | 138,546 |  |  | 92,813 |
Other countries | 64,721 |  |  | 67,724 |
| $ | 696,567 |  |  | $ | 629,987 |
The following table sets forth our revenue by product category (in thousands):
| Year Ended December 31,
| 2015 |  | 2014 |  | 2013
Aftermarket, other new and refurbished products | $ | 5,116,373 |  |  | $ | 4,613,454 |  |  | $ | 3,034,599 |
Recycled, remanufactured and related products and services | 1,597,578 |  |  | 1,473,305 |  |  | 1,394,981 |
Other | 478,682 |  |  | 653,305 |  |  | 632,948 |
| $ | 7,192,633 |  |  | $ | 6,740,064 |  |  | $ | 5,062,528 |
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.

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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 Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e8981-108599 Reference 2: 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=51669610&loc=d3e9038-108599 Reference 3: 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=51669610&loc=d3e8971-108599 Reference 4: 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=51669610&loc=d3e8595-108599 Reference 5: 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=51669610&loc=d3e8380-108599 Reference 6: 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=51669610&loc=d3e8933-108599 Reference 7: 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=51669610&loc=d3e8844-108599 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=51669610&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 40 -URI http://asc.fasb.org/extlink&oid=51669610&loc=d3e9031-108599 Reference 10: 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=51669610&loc=d3e9054-108599 Reference 11: 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=51669610&loc=d3e8538-108599 Reference 12: 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=51669610&loc=d3e8864-108599 Reference 13: 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=51669610&loc=d3e8924-108599 Reference 14: 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=51669610&loc=d3e8906-108599 + Details
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