Segment and Geographic Information (Tables)

12 Months Ended

Dec. 31, 2019

Schedule Of Financial Performance By Reportable Segment

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, 2019
Revenue:
Third Party	$	5,208,589	$	5,838,124	$	1,459,396	$	—		$	12,506,109
Intersegment	705		—		4,646		(5,351		)	—
Total segment revenue	$	5,209,294	$	5,838,124	$	1,464,042	$	(5,351	)	$	12,506,109
Segment EBITDA	$	712,957	$	454,220	$	161,184	$	—		$	1,328,361
Depreciation and amortization ⁽¹⁾	93,747		191,195		29,464		—			314,406
Year Ended December 31, 2018
Revenue:
Third Party	$	5,181,964	$	5,221,754	$	1,472,956	$	—		$	11,876,674
Intersegment	645		—		4,724		(5,369		)	—
Total segment revenue	$	5,182,609	$	5,221,754	$	1,477,680	$	(5,369	)	$	11,876,674
Segment EBITDA	$	660,153	$	422,721	$	168,525	$	—		$	1,251,399
Depreciation and amortization ⁽¹⁾	87,348		178,473		28,256		—			294,077
Year Ended December 31, 2017
Revenue:
Third Party	$	4,798,901	$	3,636,811	$	1,301,197	$	—		$	9,736,909
Intersegment	750		—		4,319		(5,069		)	—
Total segment revenue	$	4,799,651	$	3,636,811	$	1,305,516	$	(5,069	)	$	9,736,909
Segment EBITDA	$	655,275	$	319,156	$	142,159	$	—		$	1,116,590
Depreciation and amortization ⁽¹⁾	86,303		120,805		23,095		—			230,203

Reconciliation Of Segment EBITDA To Net Income Table

The table below provides a reconciliation of Net Income to Segment EBITDA (in thousands):



	Year Ended December 31,
	2019			2018			2017
Net income	$	545,034		$	483,168		$	530,228
Less: net income attributable to continuing noncontrolling interest	2,800			3,050			(3,516		)
Less: net income attributable to discontinued noncontrolling interest	974			—			—
Net income attributable to LKQ stockholders	541,260			480,118			533,744
Subtract:
Net income (loss) from discontinued operations	1,619			(4,397		)	(6,746		)
Net income attributable to discontinued noncontrolling interest	(974		)	—			—
Net income from continuing operations attributable to LKQ stockholders	540,615			484,515			540,490
Add:
Depreciation and amortization	290,770			274,213			219,546
Depreciation and amortization - cost of goods sold	21,007			19,864			10,657
Depreciation and amortization - restructuring expenses - cost of goods sold	305			—			—
Depreciation and amortization - restructuring expenses	2,324			—			—
Interest expense, net of interest income	136,274			144,536			100,620
(Gain) loss on debt extinguishment	(128		)	1,350			456
Provision for income taxes	215,330			191,395			235,560
EBITDA	1,206,497			1,115,873			1,107,329
Subtract:
Equity in (losses) earnings of unconsolidated subsidiaries ⁽¹⁾	(32,277		)	(64,471		)	5,907
Fair value loss on Mekonomen derivative instrument ⁽¹⁾	—			(5,168		)	—
Gain due to resolution of acquisition related matter	12,063			—			—
Gains on bargain purchases and previously held equity interests ⁽²⁾	1,157			2,418			3,870
Add:
Restructuring and acquisition related expenses ⁽³⁾	34,658			32,428			19,672
Restructuring expenses - cost of goods sold ⁽⁴⁾	20,654			—			—
Inventory step-up adjustment - acquisition related	—			403			3,584
Impairment of net assets held for sale and goodwill ^{(5) (6)}	47,102			35,682			—
Change in fair value of contingent consideration liabilities	393			(208		)	(4,218		)
Segment EBITDA	$	1,328,361		$	1,251,399		$	1,116,590

Schedule Of Capital Expenditures By Reportable Segment

The following table presents capital expenditures by reportable segment (in thousands):



	Year Ended December 31,
	2019		2018		2017
Capital Expenditures
North America	$	131,643	$	129,391	$	95,823
Europe	121,596		99,885		71,494
Specialty	12,491		20,751		8,175
Discontinued operations	—		—		3,598
Total capital expenditures	$	265,730	$	250,027	$	179,090

Schedule Of Assets By Reportable Segment

The following table presents assets by reportable segment (in thousands):



	December 31,
	2019		2018		2017
Receivables, net
North America	$	419,452	$	411,818	$	379,666
Europe	636,216		649,174		555,372
Specialty	75,464		93,091		92,068
Total receivables, net	1,131,132		1,154,083		1,027,106
Inventories
North America	991,062		1,076,306		1,076,393
Europe	1,401,801		1,410,264		964,068
Specialty	379,914		349,505		340,322
Total inventories	2,772,777		2,836,075		2,380,783
Property, plant and equipment, net
North America	610,573		570,508		537,286
Europe	538,951		562,600		293,539
Specialty	84,876		87,054		82,264
Total property, plant and equipment, net	1,234,400		1,220,162		913,089
Operating lease assets, net ⁽¹⁾
North America	768,164		—		—
Europe	457,035		—		—
Specialty	83,312		—		—
Total operating lease assets, net	1,308,511		—		—
Equity method investments
North America	17,624		16,404		336
Europe⁽²⁾	121,619		162,765		208,068
Total equity method investments	139,243		179,169		208,404
Other unallocated assets	6,193,893		6,003,913		4,837,490
Total assets	$	12,779,956	$	11,393,402	$	9,366,872

Revenue from External Customers by Geographic Area

The following table sets forth our revenue by geographic area (in thousands):



	Year Ended December 31,
	2019		2018		2017
Revenue
United States	$	6,220,267	$	6,192,636	$	5,662,016
United Kingdom	1,599,074		1,665,317		1,548,212
Germany	1,578,543		974,514		1,744
Other countries	3,108,225		3,044,207		2,524,937
Total revenue	$	12,506,109	$	11,876,674	$	9,736,909

Schedule Of Tangible Long-Lived Assets By Geographic Area

The following table sets forth our tangible long-lived assets by geographic area (in thousands):



	December 31,
	2019		2018		2017
Long-lived assets ⁽¹⁾
United States	$	1,467,701	$	620,125	$	583,236
Germany	340,995		217,476		41
United Kingdom	330,113		165,145		178,021
Other countries	404,102		217,416		151,791
Total long-lived assets	$	2,542,911	$	1,220,162	$	913,089