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Segment and Geographic Information
 12 Months Ended
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.