Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2019 | Oct. 25, 2019 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2019 | |
Document Transition Report | false | |
Entity File Number | 000-50404 | |
Entity Registrant Name | LKQ CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 36-4215970 | |
Entity Address, Address Line One | 500 West Madison Street, | |
Entity Address, Address Line Two | Suite 2800 | |
Entity Address, City or Town | Chicago | |
Entity Address, Postal Zip Code | 60661 | |
City Area Code | 312 | |
Local Phone Number | 621-1950 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | LKQ | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 306,461,589 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q3 | |
Entity Central Index Key | 0001065696 | |
Current Fiscal Year End Date | --12-31 | |
Entity Address, State or Province | IL |
Consolidated Statements of Inco
Consolidated Statements of Income Statement - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 3,147,773 | $ 3,122,378 | $ 9,496,249 | $ 8,873,893 |
Cost of goods sold | 1,947,444 | 1,925,180 | 5,840,469 | 5,460,845 |
Gross margin | 1,200,329 | 1,197,198 | 3,655,780 | 3,413,048 |
Selling, general and administrative expenses | 892,124 | 879,150 | 2,687,024 | 2,472,085 |
Restructuring and acquisition related expenses | 8,929 | 6,614 | 20,613 | 26,546 |
Impairment of net assets held for sale | (3,601) | 0 | 44,919 | 0 |
Depreciation and amortization | 71,513 | 76,701 | 213,349 | 196,322 |
Operating income | 231,364 | 234,733 | 689,875 | 718,095 |
Other expense (income): | ||||
Interest expense, net of interest income | 31,976 | 40,860 | 103,949 | 107,647 |
Other income, net | (5,939) | (6,959) | (15,523) | (9,414) |
Total other expense, net | 26,037 | 33,901 | 88,426 | 98,233 |
Income from continuing operations before provision for income taxes | 205,327 | 200,832 | 601,449 | 619,862 |
Provision for income taxes | 57,747 | 46,068 | 165,122 | 156,427 |
Equity in earnings (losses) of unconsolidated subsidiaries | 4,232 | (20,284) | (33,745) | (18,326) |
Income from continuing operations | 151,812 | 134,480 | 402,582 | 445,109 |
Net income from discontinued operations | 781 | 0 | 1,179 | 0 |
Net income | 152,593 | 134,480 | 403,761 | 445,109 |
Less: net (loss) income attributable to continuing noncontrolling interest | (46) | 378 | 2,321 | 1,040 |
Less: net income attributable to discontinued noncontrolling interest | 376 | 0 | 568 | 0 |
Net income attributable to LKQ stockholders | $ 152,263 | $ 134,102 | $ 400,872 | $ 444,069 |
Basic earnings per share: (1) | ||||
Income from continuing operations | $ 0.49 | $ 0.42 | $ 1.29 | $ 1.42 |
Net income from discontinued operations | 0 | 0 | 0 | 0 |
Net income | 0.50 | 0.42 | 1.30 | 1.42 |
Less: net (loss) income attributable to continuing noncontrolling interest | 0 | 0 | 0.01 | 0 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to LKQ stockholders | 0.50 | 0.42 | 1.29 | 1.42 |
Diluted earnings per share: (1) | ||||
Income from continuing operations | 0.49 | 0.42 | 1.29 | 1.41 |
Net income from discontinued operations | 0 | 0 | 0 | 0 |
Net income | 0.50 | 0.42 | 1.29 | 1.41 |
Less: net (loss) income attributable to continuing noncontrolling interest | 0 | 0 | 0.01 | 0 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to LKQ stockholders | $ 0.49 | $ 0.42 | $ 1.28 | $ 1.41 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 152,593 | $ 134,480 | $ 403,761 | $ 445,109 |
Less: net (loss) income attributable to continuing noncontrolling interest | (46) | 378 | 2,321 | 1,040 |
Less: net income attributable to discontinued noncontrolling interest | 376 | 0 | 568 | 0 |
Net income attributable to LKQ stockholders | 152,263 | 134,102 | 400,872 | 444,069 |
Other comprehensive (loss) income: | ||||
Foreign currency translation, net of tax | (69,819) | (20,951) | (74,112) | (77,630) |
Net change in unrealized gains/losses on cash flow hedges, net of tax | (1,261) | 304 | (9,648) | 5,964 |
Net change in unrealized gains/losses on pension plans, net of tax | (2,353) | 1,274 | (2,134) | (154) |
Net change in other comprehensive income from unconsolidated subsidiaries | 1,240 | 643 | 98 | 2,160 |
Other comprehensive loss | (72,193) | (18,730) | (85,796) | (69,660) |
Comprehensive income | 80,400 | 115,750 | 317,965 | 375,449 |
Less: comprehensive (loss) income attributable to continuing noncontrolling interest | (46) | 378 | 2,321 | 1,040 |
Less: comprehensive income attributable to discontinued noncontrolling interest | 376 | 0 | 568 | 0 |
Comprehensive income attributable to LKQ stockholders | $ 80,070 | $ 115,372 | $ 315,076 | $ 374,409 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Current assets: | ||
Cash and cash equivalents | $ 433,391 | $ 331,761 |
Receivables, net | 1,223,197 | 1,154,083 |
Inventories | 2,582,188 | 2,836,075 |
Prepaid expenses and other current assets | 245,082 | 199,030 |
Total current assets | 4,483,858 | 4,520,949 |
Property, plant and equipment, net | 1,184,188 | 1,220,162 |
Operating lease assets, net | 1,303,260 | 0 |
Intangible assets: | ||
Goodwill | 4,309,822 | 4,381,458 |
Other intangibles, net | 837,272 | 928,752 |
Equity method investments | 144,009 | 179,169 |
Other noncurrent assets | 149,281 | 162,912 |
Total assets | 12,411,690 | 11,393,402 |
Current liabilities: | ||
Accounts payable | 997,874 | 942,398 |
Accrued expenses: | ||
Accrued payroll-related liabilities | 162,152 | 172,005 |
Refund liability | 100,327 | 104,585 |
Other accrued expenses | 326,634 | 288,425 |
Other current liabilities | 113,349 | 61,109 |
Current portion of operating lease liabilities | 225,572 | 0 |
Current portion of long-term obligations | 128,143 | 121,826 |
Total current liabilities | 2,054,051 | 1,690,348 |
Long-term operating lease liabilities, excluding current portion | 1,129,423 | 0 |
Long-term obligations, excluding current portion | 3,737,112 | 4,188,674 |
Deferred income taxes | 296,199 | 311,434 |
Other noncurrent liabilities | 322,205 | 364,194 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 319,598,334 shares issued and 306,402,419 shares outstanding at September 30, 2019; 318,417,821 shares issued and 316,146,114 shares outstanding at December 31, 2018 | 3,196 | 3,184 |
Additional paid-in capital | 1,427,382 | 1,415,188 |
Retained earnings | 3,999,748 | 3,598,876 |
Accumulated other comprehensive loss | (260,746) | (174,950) |
Treasury stock, at cost; 13,195,915 shares at September 30, 2019 and 2,271,707 shares at December 31, 2018 | (351,813) | (60,000) |
Total Company stockholders' equity | 4,817,767 | 4,782,298 |
Noncontrolling interest | 54,933 | 56,454 |
Total stockholders' equity | 4,872,700 | 4,838,752 |
Total liabilities and stockholders' equity | $ 12,411,690 | $ 11,393,402 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 1,000,000,000 | 1,000,000,000 |
Common stock, shares issued | 319,598,334 | 318,417,821 |
Common stock, shares outstanding | 306,402,419 | 316,146,114 |
Treasury Stock, Common, Shares | 13,195,915 | 2,271,707 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||
Net income | $ 152,593 | $ 134,480 | $ 403,761 | $ 445,109 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||
Depreciation and amortization | 77,878 | 81,473 | 230,239 | 210,977 |
Impairment of Mekonomen equity method investment | 39,551 | 22,715 | ||
Impairment of net assets held for sale | (3,601) | 0 | 44,919 | 0 |
Stock-based compensation expense | 7,000 | 6,000 | 20,837 | 17,544 |
Other | (13,320) | (7,187) | ||
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | ||||
Receivables, net | (102,381) | (70,797) | ||
Inventories | 148,237 | (71,058) | ||
Prepaid income taxes/income taxes payable | 40,711 | 7,262 | ||
Accounts payable | 90,879 | (71,997) | ||
Other operating assets and liabilities | 61,738 | 38,599 | ||
Net cash provided by operating activities | 965,171 | 521,167 | ||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||
Purchases of property, plant and equipment | (64,283) | (56,342) | (165,551) | (171,763) |
Acquisitions, net of cash acquired | (14,517) | (1,206,067) | ||
Proceeds from disposal of businesses | 19,505 | 0 | ||
Investments in unconsolidated subsidiaries | (6,894) | (11,066) | ||
Receipts of deferred purchase price on receivables under factoring arrangements | 0 | 9,410 | ||
Other investing activities, net | 7,368 | 7,970 | ||
Net cash used in investing activities | (160,089) | (1,371,516) | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||
Debt issuance costs | 0 | 16,938 | ||
Proceeds from issuance of Euro Notes (2026/28) | 0 | 1,232,100 | ||
Purchase of treasury stock | (291,813) | 0 | ||
Borrowings under revolving credit facilities | 390,275 | 1,025,496 | ||
Repayments under revolving credit facilities | (613,758) | (1,110,035) | ||
Repayments under term loans | (6,563) | (114,800) | ||
Borrowings under receivables securitization facility | 36,600 | 0 | ||
Repayments under receivables securitization facility | (146,600) | 0 | ||
Repayments Of Notes Payable Issued From Acquisitions | 19,123 | 0 | ||
Repayments of other debt, net | (31,587) | (38,695) | ||
Other financing activities, net | 7,125 | (2,186) | ||
Net cash (used in) provided by financing activities | (689,694) | 979,314 | ||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (9,702) | (67,385) | ||
Net increase in cash, cash equivalents and restricted cash | 105,686 | 61,580 | ||
Cash, cash equivalents and restricted cash of continuing operations, beginning of period | 337,250 | 279,766 | ||
Cash, cash equivalents and restricted cash of continuing and discontinued operations, end of period | 442,936 | 341,346 | 442,936 | 341,346 |
Less: Cash and cash equivalents of discontinued operations, end of period | (4,328) | 0 | (4,328) | 0 |
Cash, cash equivalents and restricted cash, end of period | 438,608 | 341,346 | 438,608 | 341,346 |
Reconciliation of cash, cash equivalents and restricted cash | ||||
Cash and Cash Equivalents | 433,391 | 341,346 | 433,391 | 341,346 |
Restricted cash included in Other noncurrent assets | 5,217 | 0 | 5,217 | 0 |
Cash, cash equivalents and restricted cash, end of period | $ 438,608 | $ 341,346 | 438,608 | 341,346 |
Supplemental disclosure of cash paid for: | ||||
Income taxes, net of refunds | 134,998 | 158,740 | ||
Interest | 86,525 | 74,417 | ||
Supplemental disclosure of noncash investing and financing activities: | ||||
Stock issued in acquisitions | 0 | 251,334 | ||
Noncash property, plant and equipment additions | 6,597 | 11,010 | ||
Notes payable and other financing obligations, including notes issued, debt assumed and settlement of pre-existing balances in connection with business acquisitions | 45,311 | 82,664 | ||
Notes issued in connection with purchase of noncontrolling interest | 14,196 | 0 | ||
Contingent consideration liabilities | $ 5,377 | $ 3,107 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock, Common [Member] | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest |
September 30, 2019 at Dec. 31, 2017 | $ 4,206,653 | $ 3,091 | $ 1,141,451 | $ 3,124,103 | $ (70,476) | $ 8,484 | |
September 30, 2019 at Dec. 31, 2017 | 309,127 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 445,109 | 444,069 | 1,040 | ||||
Other comprehensive loss | (69,660) | (69,660) | |||||
Stock issued in acquisitions | 8,056 | ||||||
Stock issued in acquisitions | 251,334 | $ 81 | 251,253 | ||||
Vesting of restricted stock units, net of shares withheld for employee tax | 600 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | (3,711) | $ 6 | (3,717) | 0 | 0 | 0 | |
Stock-based compensation expense | 17,544 | 17,544 | |||||
Exercise of stock options | 441 | ||||||
Exercise of stock options | 3,772 | $ 4 | 3,768 | ||||
Shares withheld for net share settlement of stock option awards | (27) | ||||||
Shares withheld for net share settlement of stock option awards | 1,057 | 1,057 | |||||
Adoption of ASU 2018-02 (see Note 9) | 5,345 | (5,345) | 5,345 | ||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | 3,182 | 3,182 | |||||
Acquired noncontrolling interest | 44,250 | 44,250 | |||||
September 30, 2019 at Sep. 30, 2018 | 4,897,416 | $ 3,182 | 1,409,242 | 3,562,827 | (134,791) | 56,956 | |
September 30, 2019 at Sep. 30, 2018 | 318,197 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
September 30, 2019 | (2,272) | ||||||
September 30, 2019 at Dec. 31, 2017 | 4,206,653 | $ 3,091 | 1,141,451 | 3,124,103 | (70,476) | 8,484 | |
September 30, 2019 at Dec. 31, 2017 | 309,127 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Stock issued in acquisitions | 251,334 | ||||||
Acquired noncontrolling interest | 44,110 | ||||||
September 30, 2019 at Dec. 31, 2018 | (2,272) | ||||||
September 30, 2019 at Dec. 31, 2018 | 4,838,752 | $ 3,184 | $ (60,000) | 1,415,188 | 3,598,876 | (174,950) | 56,454 |
September 30, 2019 at Dec. 31, 2018 | 318,418 | ||||||
September 30, 2019 at Jun. 30, 2018 | 4,776,975 | $ 3,178 | 1,403,630 | 3,428,725 | (116,061) | 57,503 | |
September 30, 2019 at Jun. 30, 2018 | 317,821 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 134,480 | 134,102 | (378) | ||||
Other comprehensive loss | (18,730) | (18,730) | |||||
Vesting of restricted stock units, net of shares withheld for employee tax | 256 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | (934) | $ 3 | (937) | ||||
Stock-based compensation expense | 5,700 | 5,700 | |||||
Exercise of stock options | 120 | ||||||
Exercise of stock options | 850 | $ 1 | 849 | ||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | (925) | (925) | |||||
September 30, 2019 at Sep. 30, 2018 | 4,897,416 | $ 3,182 | 1,409,242 | 3,562,827 | (134,791) | 56,956 | |
September 30, 2019 at Sep. 30, 2018 | 318,197 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
September 30, 2019 | (2,272) | ||||||
September 30, 2019 | (13,196) | ||||||
September 30, 2019 at Dec. 31, 2018 | 4,838,752 | $ 3,184 | $ (60,000) | 1,415,188 | 3,598,876 | (174,950) | 56,454 |
September 30, 2019 at Dec. 31, 2018 | 318,418 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 403,761 | 400,872 | (2,889) | ||||
Other comprehensive loss | $ (85,796) | (85,796) | |||||
Purchase of treasury stock | (10,924) | ||||||
Purchase of treasury stock | $ (291,813) | ||||||
Stock issued in acquisitions | 0 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | 684 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | (1,801) | $ 7 | (1,808) | ||||
Stock-based compensation expense | 20,837 | 20,837 | |||||
Exercise of stock options | 606 | ||||||
Exercise of stock options | 5,468 | $ 6 | 5,462 | ||||
Shares withheld for net share settlement of stock option awards | (110) | ||||||
Shares withheld for net share settlement of stock option awards | (3,534) | $ (1) | (3,533) | ||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | (4,659) | (4,659) | |||||
Acquired noncontrolling interest | 10,365 | 10,365 | |||||
Purchase of noncontrolling interest (2) | (18,880) | (8,764) | (10,116) | ||||
September 30, 2019 at Sep. 30, 2019 | (13,196) | ||||||
September 30, 2019 at Sep. 30, 2019 | 4,872,700 | $ 3,196 | $ (351,813) | 1,427,382 | 3,999,748 | (260,746) | 54,933 |
September 30, 2019 at Sep. 30, 2019 | 319,598 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
September 30, 2019 | (9,315) | ||||||
September 30, 2019 | (13,196) | ||||||
September 30, 2019 at Jun. 30, 2019 | 4,909,748 | $ 3,190 | $ (250,762) | 1,429,129 | 3,847,485 | (188,553) | 69,259 |
September 30, 2019 at Jun. 30, 2019 | 319,010 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 152,593 | 152,263 | (330) | ||||
Other comprehensive loss | $ (72,193) | (72,193) | |||||
Purchase of treasury stock | (3,881) | ||||||
Purchase of treasury stock | $ (101,051) | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | 313 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | (647) | $ 3 | (650) | ||||
Stock-based compensation expense | 7,178 | 7,178 | |||||
Exercise of stock options | 370 | ||||||
Exercise of stock options | $ 3,598 | $ 4 | 3,594 | ||||
Shares withheld for net share settlement of stock option awards | (95) | ||||||
Shares withheld for net share settlement of stock option awards | $ 3,106 | (1) | (3,105) | ||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | (4,644) | (4,644) | |||||
Acquired noncontrolling interest | 104 | 104 | |||||
Purchase of noncontrolling interest (2) | (18,880) | (8,764) | (10,116) | ||||
September 30, 2019 at Sep. 30, 2019 | (13,196) | ||||||
September 30, 2019 at Sep. 30, 2019 | $ 4,872,700 | $ 3,196 | $ (351,813) | $ 1,427,382 | $ 3,999,748 | $ (260,746) | $ 54,933 |
September 30, 2019 at Sep. 30, 2019 | 319,598 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
September 30, 2019 | (13,196) |
Interim Financial Statements
Interim Financial Statements | 9 Months Ended |
Sep. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Interim Financial Statements The accompanying unaudited condensed consolidated financial statements represent the consolidation of LKQ Corporation, a Delaware corporation, and its subsidiaries. LKQ Corporation is a holding company and all operations are conducted by subsidiaries. When the terms "LKQ," "the Company," "we," "us," or "our" are used in this document, those terms refer to LKQ Corporation and its consolidated subsidiaries. We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to interim financial statements. Accordingly, certain information related to our significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normally recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented. Operating results for interim periods are not necessarily indicative of the results that can be expected for any subsequent interim period or for a full year. These interim financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2018 filed with the SEC on March 1, 2019 |
Business Combinations (Notes)
Business Combinations (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Business Combinations During the nine months ended September 30, 2019 , we completed five acquisitions, including one wholesale business and one self service business in North America, and three wholesale businesses in Europe. These acquisitions were not material to our results of operations or financial position as of and for the three and nine months ended September 30, 2019 . Total acquisition date fair value of the consideration for our acquisitions for the nine months ended September 30, 2019 was $48 million , composed of $17 million of cash paid (net of cash acquired), $5 million for the estimated value of contingent payments to former owners (with maximum payments totaling $7 million ), $1 million of other purchase price obligations (non-interest bearing), $21 million of notes payable, and $4 million of pre-existing balances considered to be effectively settled as a result of the acquisitions. In addition, we assumed $8 million of existing debt as of the acquisition dates. On May 30, 2018 , we acquired Stahlgruber GmbH ("Stahlgruber"), a leading European wholesale distributor of aftermarket spare parts for passenger cars, tools, capital equipment and accessories with operations in Germany, Austria, Italy, Slovenia, and Croatia, with further sales to Switzerland. Total acquisition date fair value of the consideration for our Stahlgruber acquisition was € 1.2 billion ($ 1.4 billion ), composed of € 1.0 billion ($ 1.1 billion ) of cash paid (net of cash acquired), and € 215 million ($ 251 million ) of newly issued shares of LKQ common stock. We financed the acquisition with the proceeds from €1.0 billion ( $1.2 billion ) of senior notes, the direct issuance to Stahlgruber's owner of 8,055,569 newly issued shares of LKQ common stock, and borrowings under our existing revolving credit facility. We recorded $915 million ( $908 million in 2018 and $7 million of adjustments in the six months ended June 30, 2019) of goodwill related to our acquisition of Stahlgruber. On May 3, 2018, the European Commission cleared the acquisition of Stahlgruber for the entire European Union, except with respect to the wholesale automotive parts business in the Czech Republic. The acquisition of Stahlgruber’s Czech Republic wholesale business was referred to the Czech Republic competition authority for review. On May 10, 2019, the Czech Republic competition authority approved our acquisition of Stahlgruber’s Czech Republic wholesale business subject to the requirement that we divest certain of the acquired locations. We acquired Stahlgruber’s Czech Republic wholesale business on May 29, 2019 and decided to divest all of the acquired locations. We immediately classified the business as discontinued operations because the business was never integrated into our Europe segment; see Note 3, "Discontinued Operations " for further information. The Czech Republic wholesale business represents an immaterial portion of Stahlgruber's revenue and profitability. There was no additional consideration beyond the previously remitted amounts for the Stahlgruber transaction required to complete the acquisition of the Czech Republic wholesale business. In addition to our acquisition of Stahlgruber, during the year ended December 31, 2018, we completed acquisitions of four wholesale businesses in North America and nine wholesale businesses in Europe. Total acquisition date fair value of the consideration for these acquisitions was $ 99 million , composed of $ 85 million of cash paid (net of cash and restricted cash acquired), $11 million of notes payable, and $3 million for the estimated value of contingent payments to former owners (with maximum potential payments totaling $5 million ). During the year ended December 31, 2018 , we recorded $68 million of goodwill related to these acquisitions. Our acquisitions are accounted for under the purchase method of accounting and are included in our consolidated financial statements from the dates of acquisition. The purchase prices were allocated to the net assets acquired based upon estimated fair values at the dates of acquisition. The purchase price allocations for the acquisitions made during the nine months ended September 30, 2019 and the last three months of the year ended December 31, 2018 are preliminary as we are in the process of determining the following: 1) valuation amounts for certain receivables, inventories and fixed assets acquired; 2) valuation amounts for certain intangible assets acquired; 3) the acquisition date fair value of certain liabilities assumed; and 4) the tax basis of the entities acquired. We have recorded preliminary estimates for certain of the items noted above and will record adjustments, if any, to the preliminary amounts upon finalization of the valuations. During the third quarter of 2019, the measurement period adjustments recorded for acquisitions completed in prior periods were not material. The income statement effect of these measurement period adjustments that would have been recorded in previous reporting periods if the adjustments had been recognized as of the acquisition dates was immaterial. The purchase price allocations for the acquisitions completed during the year ended December 31, 2018 are as follows (in thousands): Year Ended December 31, 2018 Stahlgruber Other Acquisitions (1) Total Receivables $ 144,826 $ 19,171 $ 163,997 Receivable reserves (2,818 ) (918 ) (3,736 ) Inventories 380,238 14,021 394,259 Prepaid expenses and other current assets 10,970 1,851 12,821 Property , plant and equipment 271,292 5,711 277,003 Goodwill 908,253 64,637 972,890 Other intangibles 285,255 35,159 320,414 Other noncurrent assets 16,625 37 16,662 Deferred income taxes (78,130 ) (5,285 ) (83,415 ) Current liabilities assumed (346,788 ) (20,116 ) (366,904 ) Debt assumed (79,925 ) (4,875 ) (84,800 ) Other noncurrent liabilities assumed (2) (80,824 ) (10,306 ) (91,130 ) Noncontrolling interest (44,110 ) — (44,110 ) Contingent consideration liabilities — (3,107 ) (3,107 ) Other purchase price obligations (6,084 ) 3,623 (2,461 ) Stock issued (251,334 ) — (251,334 ) Notes issued — (11,347 ) (11,347 ) Gains on bargain purchases (3) — (2,418 ) (2,418 ) Settlement of other purchase price obligations (non-interest bearing) — 1,711 1,711 Cash used in acquisitions, net of cash and restricted cash acquired $ 1,127,446 $ 87,549 $ 1,214,995 (1) The amounts recorded during the year ended December 31, 2018 include a $5 million adjustment to increase other intangibles related to our acquisition of Warn Industries, Inc. in 2017 and $4 million of adjustments to reduce other purchase price obligations related to other 2017 acquisitions. (2) The amount recorded for our acquisition of Stahlgruber includes a $79 million liability for certain pension obligations. (3) The amounts recorded during the year ended December 31, 2018 are due to the gains on bargain purchases related to (i) an acquisition in Europe completed in the second quarter of 2017 as a result of changes in the acquisition date fair value of the consideration, and (ii) three acquisitions in Europe completed during 2018 as a result of changes to our estimates of the fair values of the net assets acquired. The fair value of our intangible assets is based on a number of inputs, including projections of future cash flows, discount rates, assumed royalty rates and customer attrition rates, all of which are Level 3 inputs. We used the relief-from-royalty method to value trade names, trademarks, software and other technology assets, and we used the multi-period excess earnings method to value customer relationships. The relief-from-royalty method assumes that the intangible asset has value to the extent that its owner is relieved of the obligation to pay royalties for the benefits received from the intangible asset. The multi-period excess earnings method is based on the present value of the incremental after-tax cash flows attributable only to the customer relationship after deducting contributory asset charges. The fair value of our property, plant and equipment is determined using inputs such as market comparables and current replacement or reproduction costs of the asset, adjusted for physical, functional and economic factors; these adjustments to arrive at fair value use unobservable inputs in which little or no market data exists, and therefore, these inputs are considered to be Level 3 inputs. See Note 12, "Fair Value Measurements " for further information regarding the tiers in the fair value hierarchy. The acquisition of Stahlgruber expanded LKQ's geographic presence in continental Europe and serves as an additional strategic hub for our European operations. In addition, the acquisition of Stahlgruber should allow for continued improvement in procurement, logistics and infrastructure optimization. The primary objectives of our other acquisitions made during the nine months ended September 30, 2019 and the year ended December 31, 2018 were to create economic value for our stockholders by enhancing our position as a leading source for alternative collision and mechanical repair products and to expand into other product lines and businesses that may benefit from our operating strengths. When we identify potential acquisitions, we attempt to target companies with a leading market presence, an experienced management team and workforce that provides a fit with our existing operations, and strong cash flows. For certain of our acquisitions, we have identified cost savings and synergies as a result of integrating the company with our existing business that provide additional value to the combined entity. In many cases, acquiring companies with these characteristics will result in purchase prices that include a significant amount of goodwill. The following pro forma summary presents the effect of the businesses acquired during the nine months ended September 30, 2019 as though the businesses had been acquired as of January 1, 2018 , and the businesses acquired during the year ended December 31, 2018 as though they had been acquired as of January 1, 2017 . We have excluded the May 29, 2019 acquisition of the Czech Republic wholesale business as the business was never integrated into our Europe segment. The pro forma adjustments are based upon unaudited financial information of the acquired entities (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenue, as reported $ 3,147,773 $ 3,122,378 $ 9,496,249 $ 8,873,893 Revenue of purchased businesses for the period prior to acquisition: Stahlgruber — — — 815,405 Other acquisitions — 33,708 16,481 133,545 Pro forma revenue $ 3,147,773 $ 3,156,086 $ 9,512,730 $ 9,822,843 Income from continuing operations, as reported (1) $ 151,812 $ 134,480 $ 402,582 $ 445,109 Income from continuing operations of purchased businesses for the period prior to acquisition, and pro forma purchase accounting adjustments: Stahlgruber 4,368 5,624 10,484 14,114 Other acquisitions 314 1,863 2,161 4,780 Acquisition related expenses, net of tax (2) 1,174 681 1,498 13,986 Pro forma income from continuing operations 157,668 142,648 416,725 477,989 Less: Net (loss) income attributable to continuing noncontrolling interest, as reported (46 ) 378 2,321 1,040 Less: Pro forma net income attributable to continuing noncontrolling interest — — — 2,799 Pro forma net income from continuing operations attributable to LKQ stockholders (3) $ 157,714 $ 142,270 $ 414,404 $ 474,150 (1) 2018 amounts include interest expense for the period from April 9, 2018 through September 30, 2018 recorded on the senior notes issued in connection with our acquisition of Stahlgruber. (2) Includes expenses related to acquisitions closed in the period and excludes expenses for acquisitions not yet completed. (3) Excludes our acquisition of the Czech Republic wholesale business which is classified as discontinued operations. Unaudited pro forma supplemental information is based upon accounting estimates and judgments that we believe are reasonable. The unaudited pro forma supplemental information includes the effect of purchase accounting adjustments, such as the adjustment of inventory acquired to fair value, adjustments to depreciation on acquired property, plant and equipment, adjustments to rent expense for above or below market leases, adjustments to amortization on acquired intangible assets, adjustments to interest expense, and the related tax effects. The pro forma impact of our acquisitions also reflects the elimination of acquisition related expenses, net of tax. Refer to Note 6, "Restructuring and Acquisition Related Expenses ," for further information regarding our acquisition related expenses. These pro forma results are not necessarily indicative of what would have occurred if the acquisitions had been in effect for the periods presented or of future results. |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Discontinued Operations [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations As described in Note 2, "Business Combinations," we classified the acquired Stahlgruber Czech Republic wholesale business as discontinued operations. We intend to divest the business within the next year, and thus, the net assets are reflected on the Unaudited Condensed Consolidated Balance Sheet at the lower of fair value less cost to sell or carrying value. As of September 30, 2019, the assets held for sale, liabilities held for sale, and noncontrolling interest are recorded within Prepaid expenses and other current assets, Other current liabilities, and Noncontrolling interest, respectively, on the Unaudited Condensed Consolidated Balance Sheet. As of the acquisition date, we acquired $5 million of cash and assumed $6 million of existing debt. Fair value was based on the estimated selling price, the inputs of which included projected market multiples and any reasonable offers. Due to the uncertainties in the estimation process, it is possible that actual results could differ from the estimates used in the Company's analysis. The inputs utilized in the fair value estimate are classified as Level 3 within the fair value hierarchy. The fair value of the net assets was measured on a non-recurring basis as of September 30, 2019. |
Financial Statement Information
Financial Statement Information (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Financial Statement Information [Text Block] | Financial Statement Information Allowance for Doubtful Accounts We have a reserve for uncollectible accounts, which was approximately $50 million and $57 million at September 30, 2019 and December 31, 2018 , respectively. Inventories Inventories consist of the following (in thousands): September 30, December 31, 2019 2018 Aftermarket and refurbished products $ 2,117,275 $ 2,309,458 Salvage and remanufactured products 438,845 503,199 Manufactured products 26,068 23,418 Total inventories $ 2,582,188 $ 2,836,075 Aftermarket and refurbished products and salvage and remanufactured products are primarily composed of finished goods. As of September 30, 2019 , manufactured products inventory was composed of $17 million of raw materials, $3 million of work in process, and $6 million of finished goods. As of December 31, 2018 , manufactured products inventory was composed of $17 million of raw materials, $2 million of work in process, and $4 million of finished goods. Net Assets Held for Sale During the first six months of 2019, we committed to plans to sell certain businesses in our North America and Europe segments. As a result, these businesses were classified as net assets held for sale and were required to be adjusted to the lower of fair value less cost to sell or carrying value, resulting in impairment charges totaling $49 million through the six months ended June 30, 2019 (presented in Impairment of net assets held for sale in the Unaudited Condensed Consolidated Statement of Income). In the third quarter of 2019, we completed the sales of two of these businesses, our aviation business in North America and a wholesale business in Bulgaria. The proceeds exceeded our prior fair value estimates, resulting in a net $4 million reduction of previously reported impairment charges for the three months ended September 30, 2019 and a net $45 million impairment charge for the nine months ended September 30, 2019 . The disposed businesses were immaterial, generating annualized revenue of approximately $55 million during the twelve-month period ended September 30, 2019 . Excluding the Stahlgruber Czech Republic wholesale business discussed in Note 3, "Discontinued Operations ," as of September 30, 2019 , there were $13 million of assets held for sale, including $3 million of goodwill that was reclassified as held for sale related to our Europe segment, and $4 million of liabilities held for sale, which were recorded within Prepaid expenses and other current assets and Other current liabilities, respectively, on the Unaudited Condensed Consolidated Balance Sheet. We expect the remaining assets held for sale to be disposed of during the next twelve months. The remaining assets held for sale generated annualized revenue of approximately $84 million during the twelve-month period ended September 30, 2019 . We are required to record net assets of our held for sale businesses at the lower of fair value less cost to sell or carrying value. Fair values were based on projected discounted cash flows and/or estimated selling prices. Management's assumptions for our discounted cash flow analysis of the businesses were based on projected revenues and profits, tax rates, capital expenditures, working capital requirements and discount rates. For businesses for which we utilized estimated selling prices to calculate the fair value, the inputs to our estimates included projected market multiples and any reasonable offers. Due to uncertainties in the estimation process, it is possible that actual results could differ from the estimates used in our analysis. The inputs utilized in the fair value estimates are classified as Level 3 within the fair value hierarchy. The fair values of the net assets were measured on a non-recurring basis as of September 30, 2019. Investments in Unconsolidated Subsidiaries Our investment in unconsolidated subsidiaries was $144 million and $179 million as of September 30, 2019 and December 31, 2018 , respectively. Europe Segment Our investment in unconsolidated subsidiaries in Europe was $127 million and $163 million as of September 30, 2019 and December 31, 2018, respectively. We recorded equity in earnings of $4 million and equity in losses of $35 million during the three and nine months ended September 30, 2019 , respectively, and equity in losses of $20 million and $ 18 million during the three and nine months ended September 30, 2018 , respectively, related to our investments in unconsolidated subsidiaries in our Europe segment, mainly related to our investment in Mekonomen AB ("Mekonomen"). On December 1, 2016 , we acquired a 26.5% equity interest in Mekonomen for an aggregate purchase price of $181 million . In October 2018, we acquired an additional $48 million of equity in Mekonomen at a discounted share price as part of its rights issue, increasing our equity interest to 26.6% . We are accounting for our interest in Mekonomen using the equity method of accounting, as our investment gives us the ability to exercise significant influence, but not control, over the investee. As of September 30, 2019, our share of the book value of Mekonomen's net assets exceeded the book value of our investment in Mekonomen by $5 million ; this difference is primarily related to Mekonomen's Accumulated Other Comprehensive Income balance as of our acquisition date in 2016. We are recording our equity in the net earnings of Mekonomen on a one quarter lag. During the three months ended March 31, 2019 and September 30, 2018, we recognized other-than-temporary impairment charges of $40 million and $23 million , respectively, which represented the difference in the carrying value and the fair value of our investment in Mekonomen. The fair value of our investment in Mekonomen was determined using the Mekonomen share prices of SEK 65 and SEK 126 as of March 31, 2019 and September 30, 2018, respectively. The impairment charges are recorded in Equity in earnings (losses) of unconsolidated subsidiaries in our Unaudited Condensed Consolidated Statements of Income. In May 2018, we received a cash dividend of $8 million (SEK 67 million ) related to our investment in Mekonomen. Mekonomen announced in February 2019 that the Mekonomen Board of Directors has proposed no dividend payment in 2019. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at September 30, 2019 was $126 million (using the Mekonomen share price of SEK 83 as of September 30, 2019) compared to a carrying value of $115 million . In 2018, we participated in a ri ghts issue with preferential rights for Mekonomen's existing shareholders, who were given the right to subscribe for four new Mekonomen shares per seven existing owned shares at a discounted share price. As of September 30, 2018, we recorded a derivative instrument of $29 million in Other noncurrent assets on our Unaudited Condensed Consolidated Balance Sheets, which represented our right to acquire Mekonomen shares at a discount. We measured the derivative instrument at fair value, and we recorded a $3 million gain on our fair value remeasurement during the three months ended September 30, 2018; the gain was recorded in Other income, net in the Unaudited Condensed Consolidated Statements of Income. North America Segment Our investment in unconsolidated subsidiaries in the North America segment was $17 million and $16 million as of September 30, 2019 and December 31, 2018 , respectively. The equity in earnings for the North America equity investments was immaterial during each of the three and nine months ended September 30, 2019 and 2018. Warranty Reserve Some of our salvage mechanical products are sold with a standard six month warranty against defects. Additionally, some of our remanufactured engines are sold with a standard three year warranty against defects. We also provide a limited lifetime warranty for certain of our aftermarket products. These assurance-type warranties are not considered a separate performance obligation, and thus no transaction price is allocated to them. We record the warranty costs in Cost of goods sold in our Unaudited Condensed Consolidated Statements of Income. Our warranty reserve is calculated using historical claim information to project future warranty claims activity and is recorded within Other accrued expenses and Other noncurrent liabilities on our Unaudited Condensed Consolidated Balance Sheets based on the expected timing of the related payments. The changes in the warranty reserve are as follows (in thousands): Balance as of December 31, 2018 $ 23,262 Warranty expense 43,883 Warranty claims (39,969 ) Balance as of September 30, 2019 $ 27,176 Litigation and Related Contingencies We have certain contingencies resulting from litigation, claims and other commitments and are subject to a variety of environmental and pollution control laws and regulations incident to the ordinary course of business. We currently expect that the resolution of such contingencies will not materially affect our financial position, results of operations or cash flows. Stockholders' Equity Treasury Stock On October 25, 2018, our Board of Directors authorized a stock repurchase program under which we may purchase up to $500 million of our common stock from time to time through October 25, 2021. Repurchases under the program may be made in the open market or in privately negotiated transactions, with the amount and timing of repurchases depending on market conditions and corporate needs. The repurchase program does not obligate us to acquire any specific number of shares and may be suspended or discontinued at any time. Delaware law imposes restrictions on stock repurchases. During the nine months ended September 30, 2019 , we repurchased 10.9 million shares of common stock for an aggregate price of $292 million . During 2018, we repurchased 2.3 million shares of common stock for an aggregate price of $60 million . As of September 30, 2019 , there was $148 million of remaining capacity under our repurchase program. Repurchased shares are accounted for as treasury stock using the cost method. On October 25, 2019, our Board of Directors authorized an increase to our existing stock repurchase program under which the Company may purchase up to an additional $500 million of our common stock from time to time through October 25, 2022; this extended date also applies to the original repurchase program. With the increase, the Board of Directors has authorized a total of $1.0 billion of common stock repurchases. As of the date of this filing, there was $648 million of remaining capacity under our repurchase program, with the additional $500 million authorization. Noncontrolling Interest In July 2019, we purchased substantially all of the noncontrolling interest of a subsidiary acquired in connection with the Stahlgruber acquisition for a purchase price of $19 million , which included the issuance of $14 million of notes payable. This purchase resulted in a net decrease to Noncontrolling interest of $10 million and a decrease to Additional paid-in capital of $9 million in our unaudited condensed consolidated financial statements as of September 30, 2019. Recent Accounting Pronouncements Adoption of New Lease Standard In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2016-02, "Leases" ("ASU 2016-02"), which represents the FASB Accounting Standard Codification Topic 842 ("ASC 842"), to increase transparency and comparability by recognizing lease assets and lease liabilities on the Unaudited Condensed Consolidated Balance Sheets and disclosing key information about leasing arrangements. The main difference between the prior standard and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under the prior standard. We adopted the standard in the first quarter of 2019 using the modified retrospective approach and took advantage of the transition package of practical expedients permitted within the new standard, which, among other things, allows us to carryforward the historical lease classification. For leases with a term of 12 months or less, we elected the short-term lease exemption, which allowed us to not recognize right-of-use assets or lease liabilities for qualifying leases existing at transition and new leases we may enter into in the future. Additionally, we adopted the practical expedient to combine lease and non-lease components. As of January 1, 2019, we recorded both an operating lease asset and operating lease liability of $1.3 billion . The preexisting deferred rent liability balances from the historical straight-line treatment of operating leases was reclassified as a reduction of the lease asset upon adoption. The adoption of the standard did not materially affect our Unaudited Condensed Consolidated Statements of Income or Statements of Cash Flows as operating lease payments will still be an operating cash outflow and capital lease payments will still be a financing cash outflow. The new standard did not have a material impact on our liquidity. The standard will have no impact on our debt covenant compliance under our current agreements as the covenant calculations are based on the prior lease accounting rules. Other Recently Adopted Accounting Pronouncements During the first quarter of 2019, we adopted ASU No. 2017-12, "Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"), which amends the hedge accounting recognition and presentation requirements in ASC 815 ("Derivatives and Hedging"). ASU 2017-12 significantly alters the hedge accounting model by making it easier for an entity to achieve and maintain hedge accounting and provides for accounting that better reflects an entity's risk management activities. We adopted the provisions of ASU 2017-12 by applying a modified retrospective approach to existing hedging relationships as of the adoption date. The adoption of ASU 2017-12 did not have a material impact on our unaudited condensed consolidated financial statements. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"), which removes, modifies, and adds certain disclosure requirements in ASC 820. ASU 2018-13 is effective for fiscal years and interim periods beginning after December 15, 2019; early adoption is permitted. We are in the process of evaluating the impact of this standard on our disclosures but do not currently believe that it will have a material impact. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), and in November 2018 issued a subsequent amendment, ASU 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses" ("ASU 2018-19"). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. ASU 2018-19 will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope of this amendment that represent the contractual right to receive cash. ASU 2016-13 and ASU 2018-19 should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share The following chart sets forth the computation of earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Income from continuing operations $ 151,812 $ 134,480 $ 402,582 $ 445,109 Denominator for basic earnings per share—Weighted-average shares outstanding 307,230 318,082 311,360 313,417 Effect of dilutive securities: RSUs 293 333 341 452 PSUs — — — — Stock options 437 987 503 1,082 Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding 307,960 319,402 312,204 314,951 Basic earnings per share from continuing operations $ 0.49 $ 0.42 $ 1.29 $ 1.42 Diluted earnings per share from continuing operations (1) $ 0.49 $ 0.42 $ 1.29 $ 1.41 (1) Diluted earnings per share from continuing operations was computed using the treasury stock method for dilutive securities. The following table sets forth the number of employee stock-based compensation awards outstanding but not included in the computation of diluted earnings per share because their effect would have been antidilutive for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Antidilutive securities: RSUs 942 375 700 317 Stock options 31 — 32 — |
Restructuring and Acquisition R
Restructuring and Acquisition Related Expenses (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Restructuring and Acquisition Related Expenses [Abstract] | |
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] | Restructuring and Acquisition Related Expenses Acquisition Related Expenses Acquisition related expenses, which include external costs such as legal, accounting and advisory fees, were $2 million in each of the three and nine months ended September 30, 2019 . Acquisition related expenses for the three and nine months ended September 30, 2018 were $1 million and $17 million , respectively, which included external costs primarily related to our May 2018 acquisition of Stahlgruber. Acquisition Integration Plans During the three and nine months ended September 30, 2019 , we incurred $7 million and $13 million of restructuring expenses, respectively, primarily related to our acquisition integration efforts in our Europe segment. These expenses included approximately $4 million and $7 million for the three and nine months ended September 30, 2019 , respectively, related to the integration of our acquisition of Andrew Page Limited ("Andrew Page"). The $4 million recorded during the three months ended September 30, 2019 for Andrew Page was recorded within Cost of goods sold in the Unaudited Condensed Consolidated Statement of Income. During the three and nine months ended September 30, 2018 , we incurred $5 million and $10 million of restructuring expenses, respectively. Restructuring expenses for the three months ended September 30, 2018 primarily consisted of $4 million related to the integration of our acquisition of Andrew Page and $1 million related to our Specialty segment; restructuring expenses for the nine months ended September 30, 2018 primarily consisted of $8 million related to the integration of our acquisition of Andrew Page and $2 million related to our Specialty segment. These integration activities included the closure of duplicate facilities and termination of employees. We expect to incur additional expenses related to the integration of certain of our acquisitions into our existing operations. These integration activities are expected to include the closure of duplicate facilities, rationalization of personnel in connection with the consolidation of overlapping facilities with our existing business, and moving expenses. Future expenses to complete these integration plans are currently expected to be between $5 million and $10 million . 2019 Global Restructuring Program In the second quarter of 2019, we began implementing a cost reduction initiative, covering all three of our reportable segments, designed to eliminate underperforming assets and cost inefficiencies. We have incurred and expect to incur costs for inventory write-downs, employee severance and other expenditures related to employee terminations; lease exit costs, such as lease termination fees, accelerated amortization of operating lease assets and impairment of operating lease assets; other costs related to facility exits, such as moving expenses to relocate inventory and equipment; and accelerated depreciation of fixed assets to be disposed earlier than the end of the previously estimated use lives. During the three and nine months ended September 30, 2019 , we incurred $18 million and $23 million , respectively, of restructuring expenses primarily related to inventory write-downs, facility exit costs, and employee-related costs. Of these expenses, $13 million , primarily related to Andrew Page branch consolidation and brand rationalization, was recorded within Cost of goods sold in the Unaudited Condensed Consolidated Statement of Income during each of the three and nine months ended September 30, 2019, and $4 million and $10 million , respectively, was recorded within Restructuring and acquisition related expenses. We currently expect to incur additional expenses between $15 million and $20 million through the end of 2020 to complete the program. 1 LKQ Europe Program In September 2019, we announced a multi-year program called "1 LKQ Europe" which is intended to create structural centralization and standardization of key functions to facilitate the operation of the Europe segment as a single business. Under the 1 LKQ Europe program, we will reorganize our non-customer-facing teams and support systems through various projects including the implementation of a common ERP platform, rationalization of our product portfolio, and creation of a Europe headquarters office and central back office. We currently expect to incur between $45 million and $55 million in personnel and inventory related restructuring charges through 2024 as a result of executing the 1 LKQ Europe program. In future periods, we may identify additional initiatives and projects under the 1 LKQ Europe program that may result in additional restructuring expense, although we are currently unable to estimate the range of charges for such potential future initiatives and projects. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Comprehensive Income (Loss) Note [Text Block] | Accumulated Other Comprehensive Income (Loss) The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands): Three Months Ended September 30, 2019 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (181,890 ) $ 5,987 $ (7,856 ) $ (4,794 ) $ (188,553 ) Pretax (loss) income (69,440 ) 28,594 (3,087 ) — (43,933 ) Income tax effect — (6,739 ) 782 — (5,957 ) Reclassification of unrealized (gain) loss — (30,256 ) (61 ) — (30,317 ) Reclassification of deferred income taxes — 7,140 13 — 7,153 Disposal of business (379 ) — — — (379 ) Other comprehensive income from unconsolidated subsidiaries — — — 1,240 1,240 Ending balance $ (251,709 ) $ 4,726 $ (10,209 ) $ (3,554 ) $ (260,746 ) Three Months Ended September 30, 2018 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (125,753 ) $ 19,684 $ (10,200 ) $ 208 $ (116,061 ) Pretax (loss) income (23,405 ) 7,681 1,217 — (14,507 ) Income tax effect 2,454 (1,796 ) 41 — 699 Reclassification of unrealized (gain) loss — (7,284 ) 21 — (7,263 ) Reclassification of deferred income taxes — 1,703 (5 ) — 1,698 Other comprehensive income from unconsolidated subsidiaries — — — 643 643 Ending balance $ (146,704 ) $ 19,988 $ (8,926 ) $ 851 $ (134,791 ) Nine Months Ended September 30, 2019 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (177,597 ) $ 14,374 $ (8,075 ) $ (3,652 ) $ (174,950 ) Pretax (loss) income (73,733 ) 34,769 (3,087 ) — (42,051 ) Income tax effect — (8,163 ) 782 — (7,381 ) Reclassification of unrealized (gain) loss — (47,431 ) 229 — (47,202 ) Reclassification of deferred income taxes — 11,177 (58 ) — 11,119 Disposal of business (379 ) — — — (379 ) Other comprehensive income from unconsolidated subsidiaries — — — 98 98 Ending balance $ (251,709 ) $ 4,726 $ (10,209 ) $ (3,554 ) $ (260,746 ) Nine Months Ended September 30, 2018 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (71,933 ) $ 11,538 $ (8,772 ) $ (1,309 ) $ (70,476 ) Pretax (loss) income (82,137 ) 33,901 (102 ) — (48,338 ) Income tax effect 4,507 (7,926 ) (125 ) — (3,544 ) Reclassification of unrealized (gain) loss — (26,117 ) 97 — (26,020 ) Reclassification of deferred income taxes — 6,106 (24 ) — 6,082 Other comprehensive income from unconsolidated subsidiaries — — — 2,160 2,160 Adoption of ASU 2018-02 2,859 2,486 — — 5,345 Ending balance $ (146,704 ) $ 19,988 $ (8,926 ) $ 851 $ (134,791 ) The amounts of unrealized gains and losses on our Cash Flow Hedges reclassified to our Unaudited Condensed Consolidated Statements of Income are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Unrealized gains on interest rate swaps (1) (2) $ 1,863 $ 2,139 $ 6,805 $ 4,748 Unrealized gains on foreign currency forwards (2) (3) 3,667 2,131 10,829 6,287 Unrealized gains on cross currency swaps (4) 24,726 3,014 29,797 15,082 Total $ 30,256 $ 7,284 $ 47,431 $ 26,117 (1) Inclusive of our interest rate swap agreements and the interest rate swap component of our cross currency swaps. (2) Amounts reclassified to Interest expense, net of interest income in our Unaudited Condensed Consolidated Statements of Income. (3) Related to the foreign currency forward component of our cross currency swaps. (4) Amounts reclassified to Other income, net in our Unaudited Condensed Consolidated Statements of Income. These gains and losses offset the impact of the remeasurement of the underlying contracts. Net unrealized losses related to our pension plans were reclassified to Other income, net in our Unaudited Condensed Consolidated Statements of Income during each of the nine months ended September 30, 2019 and 2018 . Our policy is to reclassify the income tax effect from Accumulated other comprehensive income (loss) to the Provision for income taxes when the related gains and losses are released to the Unaudited Condensed Consolidated Statements of Income. During the first quarter of 2018, we adopted ASU No. 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"), which allowed a reclassification from Accumulated other comprehensive income (loss) to Retained earnings for stranded tax effects resulting from the reduction of the U.S. federal statutory income tax rate to 21% from 35% due to the enactment of the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). As a result of the adoption of ASU 2018-02 in the first quarter of 2018, we recorded a $5 million |
Accumulated Other Comprehensive Income (Loss) | The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands): Three Months Ended September 30, 2019 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (181,890 ) $ 5,987 $ (7,856 ) $ (4,794 ) $ (188,553 ) Pretax (loss) income (69,440 ) 28,594 (3,087 ) — (43,933 ) Income tax effect — (6,739 ) 782 — (5,957 ) Reclassification of unrealized (gain) loss — (30,256 ) (61 ) — (30,317 ) Reclassification of deferred income taxes — 7,140 13 — 7,153 Disposal of business (379 ) — — — (379 ) Other comprehensive income from unconsolidated subsidiaries — — — 1,240 1,240 Ending balance $ (251,709 ) $ 4,726 $ (10,209 ) $ (3,554 ) $ (260,746 ) Three Months Ended September 30, 2018 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (125,753 ) $ 19,684 $ (10,200 ) $ 208 $ (116,061 ) Pretax (loss) income (23,405 ) 7,681 1,217 — (14,507 ) Income tax effect 2,454 (1,796 ) 41 — 699 Reclassification of unrealized (gain) loss — (7,284 ) 21 — (7,263 ) Reclassification of deferred income taxes — 1,703 (5 ) — 1,698 Other comprehensive income from unconsolidated subsidiaries — — — 643 643 Ending balance $ (146,704 ) $ 19,988 $ (8,926 ) $ 851 $ (134,791 ) Nine Months Ended September 30, 2019 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (177,597 ) $ 14,374 $ (8,075 ) $ (3,652 ) $ (174,950 ) Pretax (loss) income (73,733 ) 34,769 (3,087 ) — (42,051 ) Income tax effect — (8,163 ) 782 — (7,381 ) Reclassification of unrealized (gain) loss — (47,431 ) 229 — (47,202 ) Reclassification of deferred income taxes — 11,177 (58 ) — 11,119 Disposal of business (379 ) — — — (379 ) Other comprehensive income from unconsolidated subsidiaries — — — 98 98 Ending balance $ (251,709 ) $ 4,726 $ (10,209 ) $ (3,554 ) $ (260,746 ) Nine Months Ended September 30, 2018 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (71,933 ) $ 11,538 $ (8,772 ) $ (1,309 ) $ (70,476 ) Pretax (loss) income (82,137 ) 33,901 (102 ) — (48,338 ) Income tax effect 4,507 (7,926 ) (125 ) — (3,544 ) Reclassification of unrealized (gain) loss — (26,117 ) 97 — (26,020 ) Reclassification of deferred income taxes — 6,106 (24 ) — 6,082 Other comprehensive income from unconsolidated subsidiaries — — — 2,160 2,160 Adoption of ASU 2018-02 2,859 2,486 — — 5,345 Ending balance $ (146,704 ) $ 19,988 $ (8,926 ) $ 851 $ (134,791 ) |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Reconition (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue From Contract With Customer | Revenue Recognition The majority of our revenue is derived from the sale of vehicle parts. We recognize revenue when the products are shipped to, delivered to or picked up by customers, which is the point when title has transferred and risk of ownership has passed. Sources of Revenue We report our revenue in two categories: (i) parts and services and (ii) other. The following table sets forth our revenue by category, with our parts and services revenue further disaggregated by reportable segment (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 North America $ 1,145,402 $ 1,109,067 $ 3,466,582 $ 3,447,074 Europe 1,446,392 1,464,049 4,398,185 3,781,091 Specialty 394,204 388,865 1,157,023 1,151,172 Parts and services 2,985,998 2,961,981 9,021,790 8,379,337 Other 161,775 160,397 474,459 494,556 Total revenue $ 3,147,773 $ 3,122,378 $ 9,496,249 $ 8,873,893 Parts and Services Our parts revenue is generated from the sale of vehicle products including replacement parts, components and systems used in the repair and maintenance of vehicles and specialty products and accessories to improve the performance, functionality and appearance of vehicles. Services revenue includes (i) additional services that are generally billed concurrently with the related product sales, such as the sale of service-type warranties, (ii) fees for admission to our self service yards, and (iii) diagnostic and repair services. In North America, our vehicle replacement products include sheet metal collision parts such as doors, hoods, and fenders; bumper covers; head and tail lamps; automotive glass products such as windshields; mirrors and grilles; wheels; and large mechanical items such as engines and transmissions. In Europe, our products include a wide variety of small mechanical products such as brake pads, discs and sensors; clutches; electrical products such as spark plugs and batteries; steering and suspension products; filters; and oil and automotive fluids. In our Specialty operations, we serve six product segments: truck and off-road; speed and performance; RV; towing; wheels, tires and performance handling; and miscellaneous accessories. Our service-type warranties typically have service periods ranging from 6 months to 36 months . Under FASB Accounting Standards Codification Topic 606 ("ASC 606"), proceeds from these service-type warranties are deferred at contract inception and amortized on a straight-line basis to revenue over the contract period. The changes in deferred service-type warranty revenue are as follows (in thousands): Balance as of January 1, 2019 $ 24,006 Additional warranty revenue deferred 32,118 Warranty revenue recognized (29,469 ) Balance as of September 30, 2019 $ 26,655 Other Revenue Revenue from other sources includes scrap sales, bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from our furnace operations. We derive scrap metal from several sources, including vehicles that have been used in both our wholesale and self service recycling operations and from original equipment manufacturers ("OEMs") and other entities that contract with us for secure disposal of "crush only" vehicles. The sale of hulks in our wholesale and self service recycling operations represents one performance obligation, and revenue is recognized based on a price per weight when the customer (processor) collects the scrap. Some adjustments may occur when the customer weighs the scrap at their location, and revenue is adjusted accordingly. Revenue by Geographic Area See Note 16, "Segment and Geographic Information " for information related to our revenue by geographic region. Variable Consideration The amount of revenue ultimately received from the customer can vary due to variable consideration which includes returns, discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, or other similar items. Under ASC 606 we are required to select the “expected value method” or the “most likely amount” method in order to estimate variable consideration. We utilize both methods in practice depending on the type of variable consideration, with contemplation of any expected reversals in revenue. We recorded a refund liability and return asset for expected returns of $100 million and $54 million , respectively, as of September 30, 2019 , and $105 million and $56 million , respectively, as of December 31, 2018 . The refund liability is presented separately on the balance sheet within current liabilities while the return asset is presented within Prepaid expenses and other current assets. Other types of variable consideration consist primarily of discounts, volume rebates, and other customer sales incentives which are recorded in Receivables, net on the Unaudited Condensed Consolidated Balance Sheets. We recorded a reserve for our variable consideration of $106 million and $103 million as of September 30, 2019 and December 31, 2018 |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Derivative Instruments and Hedging Activities We are exposed to market risks, including the effect of changes in interest rates, foreign currency exchange rates and commodity prices. Under our current policies, we use derivatives to manage our exposure to variable interest rates on our senior secured debt and changing foreign exchange rates for certain foreign currency denominated transactions. We do not hold or issue derivatives for trading purposes. Cash Flow Hedges We hold interest rate swap agreements to hedge a portion of the variable interest rate risk on our variable rate borrowings under our Credit Agreement, with the objective of minimizing the impact of interest rate fluctuations and stabilizing cash flows. Under the terms of the interest rate swap agreements, we pay the fixed interest rate and receive payment at a variable rate of interest based on LIBOR for the respective currency of each interest rate swap agreement’s notional amount. Changes in the fair value of the interest rate swap agreements are recorded in Accumulated Other Comprehensive Income (Loss) and are reclassified to Interest expense, net of interest income when the underlying interest payment has an impact on earnings. Our interest rate swap contracts have maturity dates ranging from January to June 2021. From time to time, we may hold foreign currency forward contracts related to certain foreign currency denominated intercompany transactions, with the objective of minimizing the impact of fluctuating exchange rates on these future cash flows. Under the terms of the foreign currency forward contracts, we will sell the foreign currency in exchange for U.S. dollars at a fixed rate on the maturity dates of the contracts. Changes in the fair value of the foreign currency forward contracts are recorded in Accumulated Other Comprehensive Income (Loss) and reclassified to Other income, net when the underlying transaction has an impact on earnings. In 2016, we entered into three cross currency swap agreements for a total notional amount of $422 million ( €400 million ). The notional amount steps down by €15 million annually through 2020 with the remainder maturing in January 2021. These cross currency swaps contain an interest rate swap component and a foreign currency forward contract component that, combined with related intercompany financing arrangements, effectively convert variable rate U.S. dollar-denominated borrowings into fixed rate euro-denominated borrowings. The swaps are intended to minimize the impact of fluctuating exchange rates and interest rates on the cash flows resulting from the related intercompany financing arrangements. The changes in the fair value of the derivative instruments are recorded in Accumulated Other Comprehensive Income (Loss) and are reclassified to Interest expense, net of interest income when the underlying transactions have an impact on earnings. In October 2018, we entered into two cross currency swap agreements for a total notional amount of $184 million ( €160 million ). Half of the notional amount matured in October 2019 with the remainder in October 2020. The purpose of, and accounting for, the swaps are similar to those described in the previous paragraph. The activity related to our cash flow hedges is presented in operating activities in our Unaudited Condensed Consolidated Statements of Cash Flows. The following tables summarize the notional amounts and fair values of our designated cash flow hedges as of September 30, 2019 and December 31, 2018 (in thousands): Notional Amount Fair Value at September 30, 2019 (USD) September 30, 2019 Other Current Assets Other Noncurrent Assets Other Accrued Expenses Other Noncurrent Liabilities Interest rate swap agreements USD denominated $ 480,000 $ — $ 3,634 $ — $ — Cross currency swap agreements USD/euro $ 562,418 4,678 5,766 53 14,544 Total cash flow hedges $ 4,678 $ 9,400 $ 53 $ 14,544 Notional Amount Fair Value at December 31, 2018 (USD) December 31, 2018 Other Current Assets Other Noncurrent Assets Other Accrued Expenses Other Noncurrent Liabilities Interest rate swap agreements USD denominated $ 480,000 $ — $ 14,967 $ — $ — Cross currency swap agreements USD/euro $ 574,315 211 7,669 127 40,870 Total cash flow hedges $ 211 $ 22,636 $ 127 $ 40,870 While certain derivative instruments executed with the same counterparty are subject to master netting arrangements, we present our cash flow hedge derivative instruments on a gross basis on our Unaudited Condensed Consolidated Balance Sheets. The impact of netting the fair values of these contracts would result in a decrease to Other Noncurrent Assets and Other Noncurrent Liabilities on our Unaudited Condensed Consolidated Balance Sheets of $6 million and $14 million at September 30, 2019 and December 31, 2018 , respectively. The activity related to our cash flow hedges is included in Note 9, "Accumulated Other Comprehensive Income (Loss) ." As of September 30, 2019 , we estimate that $2 million of derivative gains (net of tax) included in Accumulated Other Comprehensive Income (Loss) will be reclassified into our Unaudited Condensed Consolidated Statements of Income within the next 12 months. Other Derivative Instruments We hold other short-term derivative instruments, including foreign currency forward contracts, to manage our exposure to variability related to inventory purchases denominated in a non-functional currency. We have elected not to apply hedge accounting for these transactions, and therefore the contracts are adjusted to fair value through our results of operations as of each balance sheet date, which could result in volatility in our earnings. The notional amount and fair value of these contracts at September 30, 2019 and December 31, 2018 , along with the effect on our results of operations during the three and nine months ended September 30, 2019 and 2018 |
Long-Term Obligations
Long-Term Obligations | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Long-Term Obligations Long-term obligations consist of the following (in thousands): September 30, December 31, 2019 2018 Senior secured credit agreement: Term loans payable $ 343,438 $ 350,000 Revolving credit facilities 1,145,781 1,387,177 U.S. Notes (2023) 600,000 600,000 Euro Notes (2024) 544,950 573,350 Euro Notes (2026/28) 1,089,900 1,146,700 Receivables securitization facility — 110,000 Notes payable through October 2030 at weighted average interest rates of 2.9% and 2.0%, respectively 34,325 23,056 Finance lease obligations 39,113 39,966 Other debt at weighted average interest rates of 1.9% and 1.8%, respectively 99,215 117,448 Total debt 3,896,722 4,347,697 Less: long-term debt issuance costs (31,184 ) (36,906 ) Less: current debt issuance costs (283 ) (291 ) Total debt, net of debt issuance costs 3,865,255 4,310,500 Less: current maturities, net of debt issuance costs (128,143 ) (121,826 ) Long term debt, net of debt issuance costs $ 3,737,112 $ 4,188,674 Senior Secured Credit Agreement On November 20, 2018, LKQ Corporation, LKQ Delaware LLP, and certain other subsidiaries (collectively, the "Borrowers") entered into Amendment No. 3 to the Fourth Amended and Restated Credit Agreement ("Credit Agreement"), which amended the Fourth Amended and Restated Credit Agreement dated January 29, 2016 by modifying certain terms to (1) increase the total availability under the revolving credit facility's multicurrency component from $2.75 billion to $3.15 billion ; (2) reduce the margin on borrowings by 25 basis points at the September 30, 2018 leverage ratio, and reduce the number of leverage pricing tiers; (3) extend the maturity date by one year to January 29, 2024; (4) reduce the unused facility fee depending on leverage category; (5) increase the capacity for incurring additional indebtedness under our receivables securitization facility; (6) increase the maximum borrowing limit of swingline loans and add the ability to borrow in British Pounds and Euros; and (7) make other immaterial or clarifying modifications and amendments to the terms of the Credit Agreement. Borrowings will continue to bear interest at variable rates. Amounts under the revolving credit facility are due and payable upon maturity of the Credit Agreement on January 29, 2024. Term loan borrowings, which totaled $343 million as of September 30, 2019 , are due and payable in quarterly installments equal to $2 million on the last day of each of the first four fiscal quarters ending on or after March 31, 2019 and approximately $4 million on the last day of each fiscal quarter thereafter, with the remaining balance due and payable on January 29, 2024. The increase in the revolving credit facility's multicurrency component of $400 million was used in part to pay down $240 million of the term loan (to the new $350 million amount that was outstanding as of the date of the amendment); the remainder will be used for general corporate purposes. We are required to prepay the term loan by amounts equal to proceeds from the sale or disposition of certain assets if the proceeds are not reinvested within twelve months. We also have the option to prepay outstanding amounts under the Credit Agreement without penalty. The Credit Agreement contains customary representations and warranties and customary covenants that provide limitations and conditions on our ability to enter into certain transactions. The Credit Agreement also contains financial and affirmative covenants, including limitations on our net leverage ratio and a minimum interest coverage ratio. Borrowings under the Credit Agreement bear interest at variable rates, which depend on the currency and duration of the borrowing elected, plus an applicable margin. The applicable margin is subject to change in increments of 0.25% depending on our net leverage ratio. Interest payments are due on the last day of the selected interest period or quarterly in arrears depending on the type of borrowing. Including the effect of the interest rate swap agreements described in Note 11, "Derivative Instruments and Hedging Activities ," the weighted average interest rates on borrowings outstanding under the Credit Agreement at September 30, 2019 and December 31, 2018 were 1.6% and 1.9% , respectively. We also pay a commitment fee based on the average daily unused amount of the revolving credit facilities. The commitment fee is subject to change in increments of 0.05% depending on our net leverage ratio. In addition, we pay a participation commission on outstanding letters of credit at an applicable rate based on our net leverage ratio, and a fronting fee of 0.125% to the issuing bank, which are due quarterly in arrears. Of the total borrowings outstanding under the Credit Agreement, there were $15 million classified as current maturities at September 30, 2019 compared to $9 million at December 31, 2018 . As of September 30, 2019 , there were letters of credit outstanding in the aggregate amount of $69 million . The amounts available under the revolving credit facilities are reduced by the amounts outstanding under letters of credit, and thus availability under the revolving credit facilities at September 30, 2019 was $1.9 billion . Related to the execution of Amendment No. 3 to the Fourth Amended and Restated Credit Agreement in November 2018, we incurred $4 million of fees, the majority of which were capitalized as an offset to Long-Term Obligations and are amortized over the term of the agreement. U.S. Notes (2023) In 2013, we issued $600 million aggregate principal amount of 4.75% senior notes due 2023 (the "U.S. Notes (2023)"). The U.S. Notes (2023) are governed by the Indenture dated as of May 9, 2013 (the "U.S. Notes (2023) Indenture") among LKQ Corporation, certain of our subsidiaries (the "Guarantors"), the trustee, paying agent, transfer agent and registrar. The U.S. Notes (2023) are registered under the Securities Act of 1933. The U.S. Notes (2023) bear interest at a rate of 4.75% per year from the most recent payment date on which interest has been paid or provided for. Interest on the U.S. Notes (2023) is payable in arrears on May 15 and November 15 of each year. The U.S. Notes (2023) are fully and unconditionally guaranteed, jointly and severally, by the Guarantors. The U.S. Notes (2023) and the related guarantees are, respectively, LKQ Corporation's and each Guarantor's senior unsecured obligations and are subordinated to all of the Guarantors' existing and future secured debt to the extent of the assets securing that secured debt. In addition, the U.S. Notes (2023) are effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the U.S. Notes (2023) to the extent of the assets of those subsidiaries. The U.S. Notes (2023) are redeemable, in whole or in part, at any time on or after May 15, 2018 at the respective redemption prices specified in the U.S. Notes (2023) Indenture, plus accrued and unpaid interest, if any. We may be required to make an offer to purchase the U.S. Notes (2023) upon the sale of certain assets, subject to certain exceptions, and upon a change of control. Euro Notes (2024) On April 14, 2016, LKQ Italia Bondco S.p.A. ("LKQ Italia"), an indirect, wholly-owned subsidiary of LKQ Corporation, completed an offering of €500 million aggregate principal amount of senior notes due April 1, 2024 (the "Euro Notes (2024)") in a private placement conducted pursuant to Regulation S and Rule 144A under the Securities Act of 1933. The proceeds from the offering were used to repay a portion of the revolver borrowings under the Credit Agreement and to pay related fees and expenses. The Euro Notes (2024) are governed by the Indenture dated as of April 14, 2016 (the "Euro Notes (2024) Indenture") among LKQ Italia, LKQ Corporation and certain of our subsidiaries (the "Euro Notes (2024) Subsidiaries"), the trustee, and the paying agent, transfer agent, and registrar. The Euro Notes (2024) bear interest at a rate of 3.875% per year from the date of original issuance or from the most recent payment date on which interest has been paid or provided for. Interest on the Euro Notes (2024) is payable in arrears on April 1 and October 1 of each year. The Euro Notes (2024) are fully and unconditionally guaranteed by LKQ Corporation and the Euro Notes (2024) Subsidiaries (the "Euro Notes (2024) Guarantors"). The Euro Notes (2024) and the related guarantees are, respectively, LKQ Italia's and each Euro Notes (2024) Guarantor's senior unsecured obligations and are subordinated to all of LKQ Italia's and the Euro Notes (2024) Guarantors' existing and future secured debt to the extent of the assets securing that secured debt. In addition, the Euro Notes (2024) are effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the Euro Notes (2024) to the extent of the assets of those subsidiaries. The Euro Notes (2024) have been listed on the ExtraMOT, Professional Segment of the Borsa Italia S.p.A. securities exchange and the Global Exchange Market of Euronext Dublin. The Euro Notes (2024) are redeemable, in whole or in part, at any time at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date plus a "make whole" premium. On or after January 1, 2024, we may redeem some or all of the Euro Notes (2024) at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date. We may be required to make an offer to purchase the Euro Notes (2024) upon the sale of certain assets, subject to certain exceptions, and upon a change of control. In addition, in the event of certain developments affecting taxation or under certain other circumstances which, in any case, require the payment of certain additional amounts, we may redeem the Euro Notes (2024) in whole, but not in part, at any time at a redemption price of 100% of the principal amount thereof plus accrued but unpaid interest, if any, and such certain additional amounts, if any, to the redemption date. Euro Notes (2026/28) On April 9, 2018, LKQ European Holdings B.V. ("LKQ Euro Holdings"), a wholly-owned subsidiary of LKQ Corporation, completed an offering of €1.0 billion aggregate principal amount of senior notes. The offering consisted of €750 million senior notes due 2026 (the "2026 notes") and €250 million senior notes due 2028 (the "2028 notes" and, together with the 2026 notes, the "Euro Notes (2026/28)") in a private placement conducted pursuant to Regulation S and Rule 144A under the Securities Act of 1933. The proceeds from the offering, together with borrowings under our senior secured credit facility, were or will be used to (i) finance a portion of the consideration paid for the Stahlgruber acquisition, (ii) for general corporate purposes and (iii) to pay related fees and expenses, including the refinancing of net financial debt. The Euro Notes (2026/28) are governed by the Indenture dated as of April 9, 2018 (the “Euro Notes (2026/28) Indenture”) among LKQ Euro Holdings, LKQ Corporation and certain of our subsidiaries (the “Euro Notes (2026/28) Subsidiaries”), the trustee, paying agent, transfer agent, and registrar. The 2026 notes and 2028 notes bear interest at a rate of 3.625% and 4.125% , respectively, per year from the date of original issuance or from the most recent payment date on which interest has been paid or provided for. Interest on the Euro Notes (2026/28) is payable in arrears on April 1 and October 1 of each year. The Euro Notes (2026/28) are fully and unconditionally guaranteed by LKQ Corporation and the Euro Notes (2026/28) Subsidiaries (the "Euro Notes (2026/28) Guarantors"). The Euro Notes (2026/28) and the related guarantees are, respectively, LKQ Euro Holdings' and each Euro Notes (2026/28) Guarantor’s senior unsecured obligations and will be subordinated to all of LKQ Euro Holdings' and the Euro Notes (2026/28) Guarantors’ existing and future secured debt to the extent of the assets securing that secured debt. In addition, the Euro Notes (2026/28) are effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the Euro Notes (2026/28) to the extent of the assets of those subsidiaries. The Euro Notes (2026/28) have been listed on the Global Exchange Market of Euronext Dublin. The Euro Notes (2026/28) are redeemable, in whole or in part, at any time at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date plus a "make whole" premium. On or after April 1, 2021, we may redeem some or all of the 2026 notes at the applicable redemption prices set forth in the Euro Notes (2026/28) Indenture. On or after April 1, 2023, we may redeem some or all of the 2028 notes at the applicable redemption prices set forth in the Euro Notes (2026/28) Indenture. We also may redeem up to 35% of 2026 notes and up to 35% of the 2028 notes before April 1, 2021 with the net cash proceeds from certain equity offerings. We may be required to make an offer to purchase the Euro Notes (2026/28) upon the sale of certain assets, subject to certain exceptions, and upon a change of control. In addition, in the event of certain developments affecting taxation or under certain other circumstances which, in any case, require the payment of certain additional amounts, we may redeem the Euro Notes (2026/28) in whole, but not in part, at any time at a redemption price of 100% of the principal amount thereof, plus accrued but unpaid interest, if any, and such certain additional amounts, if any, to the redemption date. Related to the execution of the Euro Notes (2026/28) in April 2018, we incurred $16 million of fees, which were capitalized as an offset to Long-Term Obligations and are amortized over the term of the Euro Notes (2026/28). Receivables Securitization Facility On December 20, 2018, we amended the terms of our receivables securitization facility with MUFG Bank, Ltd. ("MUFG") (formerly known as The Bank of Tokyo-Mitsubishi UFJ, Ltd.) to: (i) extend the term of the facility to November 8, 2021; (ii) increase the maximum amount available to $110 million ; and (iii) make other clarifying and updating changes. Under the facility, LKQ sells an ownership interest in certain receivables, related collections and security interests to MUFG for the benefit of conduit investors and/or financial institutions for cash proceeds. Upon payment of the receivables by customers, rather than remitting to MUFG the amounts collected, LKQ retains such collections as proceeds for the sale of new receivables generated by certain of the ongoing operations of the Company. The sale of the ownership interest in the receivables is accounted for as a secured borrowing on our Unaudited Condensed Consolidated Balance Sheets, under which the receivables included in the program collateralize the amounts invested by MUFG, the conduit investors and/or financial institutions (the "Purchasers"). The receivables are held by LKQ Receivables Finance Company, LLC ("LRFC"), a wholly owned bankruptcy-remote special purpose subsidiary of LKQ, and therefore, the receivables are available first to satisfy the creditors of LRFC, including the Purchasers. While there were no borrowings on our receivables securitization facility as of September 30, 2019, $120 million of net receivables were available as collateral for the investment under the receivables facility, compared to $132 million as of December 31, 2018 . Under the receivables facility, we pay variable interest rates plus a margin on the outstanding amounts invested by the Purchasers. The variable rates are based on (i) commercial paper rates, (ii) London Interbank Offered Rate ("LIBOR"), or (iii) base rates, and are payable monthly in arrears. The commercial paper rate is the applicable variable rate unless conduit investors are not available to invest in the receivables at commercial paper rates. In such case, financial institutions will invest at the LIBOR rate or at base rates. We also pay a commitment fee on the excess of the investment maximum over the average daily outstanding investment, payable monthly in arrears. The outstanding balance was $110 million as of December 31, 2018 and there was no outstanding balance as of September 30, 2019 . At December 31, 2018 |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value We use the market and income approaches to estimate the fair value of our financial assets and liabilities, and during the three and nine months ended September 30, 2019 , there were no significant changes in valuation techniques or inputs related to the financial assets or liabilities that we have historically recorded at fair value. The tiers in the fair value hierarchy include: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as significant unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs we utilized to determine such fair value as of September 30, 2019 and December 31, 2018 (in thousands): Balance as of September 30, 2019 Fair Value Measurements as of September 30, 2019 Level 1 Level 2 Level 3 Assets: Cash surrender value of life insurance $ 56,278 $ — $ 56,278 $ — Interest rate swaps 3,634 — 3,634 — Cross currency swap agreements 10,444 — 10,444 — Total Assets $ 70,356 $ — $ 70,356 $ — Liabilities: Contingent consideration liabilities $ 9,873 $ — $ — $ 9,873 Deferred compensation liabilities 59,846 — 59,846 — Cross currency swap agreements 14,597 — 14,597 — Total Liabilities $ 84,316 $ — $ 74,443 $ 9,873 Balance as of December 31, 2018 Fair Value Measurements as of December 31, 2018 Level 1 Level 2 Level 3 Assets: Cash surrender value of life insurance $ 47,649 $ — $ 47,649 $ — Interest rate swaps 14,967 — 14,967 — Cross currency swap agreements 7,880 — 7,880 — Total Assets $ 70,496 $ — $ 70,496 $ — Liabilities: Contingent consideration liabilities $ 5,209 $ — $ — $ 5,209 Deferred compensation liabilities 48,984 — 48,984 — Cross currency swap agreements 40,997 — 40,997 — Total Liabilities $ 95,190 $ — $ 89,981 $ 5,209 The cash surrender value of life insurance is included in Other noncurrent assets on our Unaudited Condensed Consolidated Balance Sheets. The current portion of deferred compensation is included in Accrued payroll-related liabilities and the current portion of contingent consideration liabilities is included in Other current liabilities on our Unaudited Condensed Consolidated Balance Sheets; the noncurrent portion of these amounts is included in Other noncurrent liabilities on our Unaudited Condensed Consolidated Balance Sheets based on the expected timing of the related payments. The balance sheet classification of the interest rate swaps and cross currency swap agreements is presented in Note 11, "Derivative Instruments and Hedging Activities ." Our Level 2 assets and liabilities are valued using inputs from third parties and market observable data. We obtain valuation data for the cash surrender value of life insurance and deferred compensation liabilities from third party sources, which determine the net asset values for our accounts using quoted market prices, investment allocations and reportable trades. We value our other derivative instruments using a third party valuation model that performs a discounted cash flow analysis based on the terms of the contracts and market observable inputs such as current and forward interest rates and current and forward foreign exchange rates. Our contingent consideration liabilities are related to our business acquisitions. Under the terms of the contingent consideration agreements, payments may be made at specified future dates depending on the performance of the acquired business subsequent to the acquisition. The liabilities for these payments are classified as Level 3 liabilities because the related fair value measurement, which is determined using an income approach, includes significant inputs not observable in the market. Financial Assets and Liabilities Not Measured at Fair Value Our debt is reflected on the Unaudited Condensed Consolidated Balance Sheets at cost. Based on market conditions as of both September 30, 2019 and December 31, 2018 , the fair value of our credit agreement borrowings reasonably approximated the carrying values of $1.5 billion and $1.7 billion , respectively. In addition, based on market conditions, the fair value of the outstanding borrowings under the receivables facility reasonably approximated the carrying value of $110 million at December 31, 2018 ; as of September 30, 2019, there were no outstanding borrowings under the receivables facility. As of September 30, 2019 and December 31, 2018 , the fair values of the U.S. Notes (2023) were approximately $609 million and $574 million , respectively, compared to a carrying value of $600 million at each date. As of September 30, 2019 and December 31, 2018 , the fair values of the Euro Notes (2024) were approximately $618 million and $586 million compared to carrying values of $545 million and $573 million , respectively. As of September 30, 2019 , the fair value of the Euro Notes (2026/28) was $1.2 billion compared to a carrying value of $1.1 billion ; as of December 31, 2018 , the fair value of the Euro Notes (2026/28) approximated the carrying value of $1.1 billion . The fair value measurements of the borrowings under our credit agreement and receivables facility are classified as Level 2 within the fair value hierarchy since they are determined based upon significant inputs observable in the market, including interest rates on recent financing transactions with similar terms and maturities. We estimated the fair value by calculating the upfront cash payment a market participant would require at September 30, 2019 |
Equity Incentive Plans
Equity Incentive Plans | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Stock-Based Compensation In order to attract and retain employees, non-employee directors, consultants, and other persons associated with us, we grant equity-based awards under the LKQ Corporation 1998 Equity Incentive Plan (the “Equity Incentive Plan”). We have granted restricted stock units ("RSUs"), stock options, and restricted stock under the Equity Incentive Plan. We expect to issue new or treasury shares of common stock to cover past and future equity grants. RSUs The RSUs we have issued vest over periods of up to five years , subject to a continued service condition. Currently outstanding RSUs (other than PSUs, which are described below) contain either a time-based vesting condition or a combination of a performance-based vesting condition and a time-based vesting condition, in which case both conditions must be met before any RSUs vest. For most of the RSUs containing a performance-based vesting condition, the Company must report positive diluted earnings per share, subject to certain adjustments, during any fiscal year period within five years following the grant date; we have an immaterial amount of RSUs containing other performance-based vesting conditions. Each RSU converts into one share of LKQ common stock on the applicable vesting date. The grant date fair value of RSUs is based on the market price of LKQ stock on the grant date. Our 2019 annual grant of RSUs occurred in March 2019. In previous years, the annual grant occurred in mid-January. Starting with our 2019 grants, participants who are eligible for retirement (defined as a voluntary separation of service from the Company after the participant has attained at least 60 years of age and completed at least five years of service) will continue to vest in their awards; if retirement occurs during the first year of the vesting period (for RSUs subject to a time-based vesting condition) or the first year of the performance period (for RSUs with a performance-based vesting condition), the participant vests in a prorated amount of the RSU grant based on the portion of the year employed. For our RSU grants prior to 2019, participants forfeit their unvested shares upon retirement. The fair value of RSUs that vested during the nine months ended September 30, 2019 was $20 million ; the fair value of RSUs vested is based on the market price of LKQ stock on the date vested. The following table summarizes activity related to our RSUs under the Equity Incentive Plan for the nine months ended September 30, 2019 : Number Outstanding Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2019 1,475,682 $ 34.94 Granted 1,011,623 $ 27.82 Vested (753,276 ) $ 32.31 Forfeited / Canceled (70,851 ) $ 33.56 Unvested as of September 30, 2019 1,663,178 $ 31.86 Expected to vest after September 30, 2019 1,506,308 $ 31.90 2.7 $ 47,373 (1) The aggregate intrinsic value of expected to vest RSUs represents the total pretax intrinsic value (the fair value of the Company's stock on the last day of each period multiplied by the number of units) that would have been received by the holders had all RSUs vested. This amount changes based on the market price of the Company’s common stock. In 2019, we granted performance-based three-year RSUs ("PSUs") to certain employees, including our executive officers, under our Equity Incentive Plan. As these awards are performance-based, the exact number of shares to be paid out may be up to twice the grant amount, depending on the Company's performance and the achievement of certain performance metrics (adjusted earnings per share, average organic parts and services revenue growth, and average return on invested capital) over the three year period ending December 31, 2021. In 2019, we also granted an immaterial amount of performance-based RSUs to employees that have different performance metrics than those described above. The following table summarizes activity related to our PSUs under the Equity Incentive Plan for the nine months ended September 30, 2019 : Number Outstanding Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2019 — $ — Granted (2) 136,170 $ 27.69 Unvested as of September 30, 2019 136,170 $ 27.69 Expected to vest after September 30, 2019 136,170 $ 27.69 2.5 $ 4,283 (1) The aggregate intrinsic value of expected to vest PSUs represents the total pretax intrinsic value (the fair value of the Company's stock on the last day of each period multiplied by the number of units at target) that would have been received by the holders had all PSUs vested. This amount changes based on the market price of the Company’s common stock and the achievement of the performance metrics relative to the established targets. (2) Represents the number of PSUs at target payout. Stock Options Stock options vest over periods of up to five years , subject to a continued service condition. Stock options expire either six years or ten years from the date they are granted. No options were granted during the nine months ended September 30, 2019 . No options vested during the nine months ended September 30, 2019 ; all of our outstanding options are fully vested. The following table summarizes activity related to our stock options under the Equity Incentive Plan for the nine months ended September 30, 2019 : Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Balance as of January 1, 2019 1,051,494 $ 10.15 Exercised (605,591 ) $ 9.03 $ 12,085 Canceled (8,055 ) $ 18.45 Balance as of September 30, 2019 437,848 $ 11.55 0.3 $ 8,739 Exercisable as of September 30, 2019 437,848 $ 11.55 0.3 $ 8,739 (1) The aggregate intrinsic value of outstanding and exercisable options represents the total pretax intrinsic value (the difference between the fair value of the Company's stock on the last day of each period and the exercise price, multiplied by the number of options where the fair value exceeds the exercise price) that would have been received by the option holders had all option holders exercised their options as of the last day of the period indicated. This amount changes based on the market price of the Company’s common stock. Stock-Based Compensation Expense Pre-tax stock-based compensation expense for RSUs and PSUs totaled $7 million and $21 million for the three and nine months ended September 30, 2019 , respectively, and $6 million and $18 million for the three and nine months ended September 30, 2018 , respectively. As of September 30, 2019 , unrecognized compensation expense related to unvested RSUs and PSUs was $44 million . Stock-based compensation expense related to these awards will be different to the extent that forfeitures ar e realized and performance under the PSUs differs from target. |
Leases (Notes)
Leases (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Leases [Abstract] | |
Leases [Text Block] | Leases We lease certain warehouses, distribution centers, retail stores, office space, land, vehicles and equipment. We determine if an arrangement is a lease at inception. Operating lease right-of-use ("ROU") assets and operating lease liabilities are recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. As the implicit rate for most of our leases is not readily determinable, we use our incremental borrowing rate based on the information available at commencement date in determining the present value of future payments. Upon adoption of the new lease standard, we utilized the incremental borrowing rate as of the date of adoption. We determine our incremental borrowing rate by analyzing yield curves with consideration of lease term, and country and company specific factors. The operating lease ROU asset also includes any lease prepayments and excludes lease incentives. Many of our leases include one or more options to renew, with renewal terms that can extend the lease term from 1 to 40 years or more. For each lease, we consider whether we are reasonably certain to exercise these options to extend. Other contracts may contain termination options which we assess to determine whether we are reasonably certain not to exercise those options. Certain leases also include options to purchase the leased property. The depreciable life of assets and leasehold improvements are limited by the expected lease term, unless there is a transfer of title or purchase option reasonably certain of exercise. Some of our lease agreements include rental payments adjusted periodically for inflation. Most of these adjustments are considered variable lease costs. Other variable lease costs consist of certain non-lease components that are disclosed as lease costs due to our election of the practical expedient to combine lease and non-lease components and include items such as variable payments for utilities, property taxes, common area maintenance, sales taxes, and insurance. For leases with an initial term of 12 months or less, we have not recognized an operating lease ROU asset or operating lease liability on the Unaudited Condensed Consolidated Balance Sheets; we recognize lease expense for these leases on a straight-line basis over the lease terms. We guarantee the residual values for the majority of our vehicles. The residual values decline over the lease terms to a defined percentage of original cost. In the event the lessor does not realize the residual value when a vehicle is sold, we would be responsible for a portion of the shortfall. Similarly, if the lessor realizes more than the residual value when a vehicle is sold, we would be paid the amount realized over the residual value. Had we terminated all of our operating leases subject to these guarantees at September 30, 2019, our portion of the guaranteed residual value would have totaled approximately $71 million . Other than the residual value guarantees associated with our vehicles discussed above, we do not have any other material residual value guarantees or restrictive covenants. The amounts recorded on the Unaudited Condensed Consolidated Balance Sheet as of September 30, 2019 related to our lease agreements are as follows (in thousands): Leases Classification September 30, 2019 Assets Operating lease assets, net Operating lease assets, net $ 1,303,260 Finance lease assets, net Property, plant and equipment, net 39,504 Total leased assets $ 1,342,764 Liabilities Current Operating Current portion of operating lease liabilities $ 225,572 Finance Current portion of long-term obligations 10,361 Noncurrent Operating Long-term operating lease liabilities 1,129,423 Finance Long-term obligations, excluding current portion 28,752 Total lease liabilities $ 1,394,108 The components of lease expense are as follows (in thousands): Three Months Ended Nine Months Ended Lease Cost Classification September 30, 2019 September 30, 2019 Operating lease cost Cost of goods sold $ 7,265 $ 16,977 Operating lease cost Selling, general and administrative expenses 75,371 225,794 Short-term lease cost Selling, general and administrative expenses 3,006 7,472 Variable lease cost Selling, general and administrative expenses 20,521 71,711 Finance lease cost Amortization of leased assets Depreciation and amortization 2,675 7,897 Interest on lease liabilities Interest expense, net of interest income 413 1,266 Sublease income Other income, net (782 ) (1,208 ) Net lease cost $ 108,469 $ 329,909 The future minimum lease commitments under our noncancelable operating leases at December 31, 2018 were as follows (in thousands): Years ending December 31: 2019 $ 294,269 2020 256,172 2021 210,632 2022 158,763 2023 131,518 Thereafter 777,165 Future Minimum Lease Payments $ 1,828,519 The future minimum lease commitments under our leases at September 30, 2019 are as follows (in thousands): Operating leases Finance leases (1) Total Three months ending December 31, 2019 $ 76,438 $ 2,904 $ 79,342 Years ending December 31: 2020 283,138 10,528 293,666 2021 242,333 9,105 251,438 2022 192,731 6,731 199,462 2023 160,862 2,940 163,802 2024 132,269 2,615 134,884 Thereafter 758,111 15,657 773,768 Future minimum lease payments 1,845,882 50,480 1,896,362 Less: Interest 490,887 11,367 502,254 Present value of lease liabilities $ 1,354,995 $ 39,113 $ 1,394,108 (1) Amounts are included in the scheduled maturities of long-term obligations in the “Liquidity and Capital Resources” section of Management's Discussion and Analysis of Financial Condition and Results of Operations in Part I, Item 2 of this Quarterly Report on Form 10-Q. As of September 30, 2019 , we have additional minimum operating lease payments for leases that have not yet commenced of $30 million . These operating leases will commence between October 1, 2019 and December 31, 2020 with lease terms of 1 to 20 years . Most of these leases have not commenced as the assets are in the process of being constructed. We have appropriately considered the build-to-suit and sale-leaseback guidance where appropriate on these leases. No significant build-to-suit or sale-leaseback transactions have been identified. Other information related to leases was as follows: Lease Term and Discount Rate September 30, 2019 Weighted-average remaining lease term (years) Operating leases 9.6 Finance leases 8.6 Weighted-average discount rate Operating leases 5.4 % Finance leases 4.5 % Nine Months Ended Supplemental cash flows information (in thousands) September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 222,798 Financing cash outflows from finance leases 8,521 Leased assets obtained in exchange for new finance lease liabilities 9,639 Leased assets obtained in exchange for new operating lease liabilities 126,336 |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Employee Benefit Plans [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans We have funded and unfunded defined benefit plans covering certain employee groups in the U.S. and various European countries. Local statutory requirements govern many of our European plans. The defined benefit plans are mostly closed to new participants and, in some cases, existing participants no longer accrue benefits. As of September 30, 2019 and December 31, 2018 , the aggregate funded status of the defined benefit plans was a liability of $111 million and $110 million , respectively, and is reported in Other noncurrent liabilities and Accrued payroll-related liabilities on our Unaudited Condensed Consolidated Balance Sheets. On June 28, 2019, we approved an amendment to terminate our primary defined benefit plan in the U.S. (the "U.S. Plan") and freeze all related benefit accruals, effective June 30, 2019. The distribution of the U.S. Plan assets pursuant to the termination will not be made until the plan termination satisfies all regulatory requirements, which is expected to be completed in 2020. U.S. Plan participants will receive their full accrued benefits from plan assets by electing either lump sum distributions or annuity contracts with a qualifying third-party annuity provider. The resulting settlement effect of the U.S. Plan termination will be determined based on prevailing market conditions, the lump sum offer participation rate of eligible participants, the actual lump sum distributions, and annuity purchase rates at the date of distribution. As a result, we are currently unable to reasonably estimate either the timing or the final amount of such settlement charges. Based on the valuation performed as of June 28, 2019, the U.S. Plan has an underfunded status of $3 million . Net periodic benefit cost for our defined benefit plans included the following components for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Service cost $ 551 $ 628 $ 2,212 $ 1,612 Interest cost 959 996 2,954 2,442 Expected return on plan assets (455 ) (720 ) (1,795 ) (2,220 ) Amortization of actuarial (gain) loss (61 ) 21 229 97 Net periodic benefit cost $ 994 $ 925 $ 3,600 $ 1,931 For the three and nine months ended September 30, 2019 and 2018 |
Income Taxes (Notes)
Income Taxes (Notes) | 9 Months Ended |
Sep. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes At the end of each interim period, we estimate our annual effective tax rate and apply that rate to our interim earnings. We also record the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and the effects of changes in tax laws or rates, in the interim period in which they occur. The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in state and foreign jurisdictions, permanent and temporary differences between book and taxable income, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the tax environment changes. Our effective income tax rate for the nine months ended September 30, 2019 was 27.5% , compared to 25.2% for the comparable prior year period. The increase was primarily attributable to the impact of a favorable discrete item of $10 million for the nine months ended September 30, 2018 , reflecting an adjustment to the Tax Act transition tax. The increase was also partially attributable to the impact of a favorable discrete item of approximately $4 million for the nine months ended September 30, 2018, for excess tax benefits from stock-based payments; there were $1 million of excess tax benefits from stock-based payments for the nine months ended September 30, 2019. The year over year change for these discrete items increased the effective tax rate by 2.1% compared to the prior year period, while remaining discrete items increased the effective tax rate by an immaterial amount compared to the prior year period. |
Segment and Geographic Informat
Segment and Geographic Information | 9 Months Ended |
Sep. 30, 2019 | |
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 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 Three Months Ended September 30, 2019 Revenue: Third Party $ 1,302,086 $ 1,451,483 $ 394,204 $ — $ 3,147,773 Intersegment 61 — 1,110 (1,171 ) — Total segment revenue $ 1,302,147 $ 1,451,483 $ 395,314 $ (1,171 ) $ 3,147,773 Segment EBITDA $ 166,310 $ 124,712 $ 45,464 $ — $ 336,486 Depreciation and amortization (1) 23,593 47,302 6,983 — 77,878 Three Months Ended September 30, 2018 Revenue: Third Party $ 1,262,657 $ 1,470,856 $ 388,865 $ — $ 3,122,378 Intersegment 142 — 1,196 (1,338 ) — Total segment revenue $ 1,262,799 $ 1,470,856 $ 390,061 $ (1,338 ) $ 3,122,378 Segment EBITDA $ 154,049 $ 129,358 $ 42,937 $ — $ 326,344 Depreciation and amortization (1) 22,151 52,139 7,183 — 81,473 North America Europe Specialty Eliminations Consolidated Nine Months Ended September 30, 2019 Revenue: Third Party $ 3,925,962 $ 4,413,264 $ 1,157,023 $ — $ 9,496,249 Intersegment 260 — 3,664 (3,924 ) — Total segment revenue $ 3,926,222 $ 4,413,264 $ 1,160,687 $ (3,924 ) $ 9,496,249 Segment EBITDA $ 532,994 $ 346,291 $ 135,790 $ — $ 1,015,075 Depreciation and amortization (1) 68,257 141,087 20,895 — 230,239 Nine Months Ended September 30, 2018 Revenue: Third Party $ 3,927,282 $ 3,795,439 $ 1,151,172 $ — $ 8,873,893 Intersegment 526 — 3,554 (4,080 ) — Total segment revenue $ 3,927,808 $ 3,795,439 $ 1,154,726 $ (4,080 ) $ 8,873,893 Segment EBITDA $ 506,772 $ 315,785 $ 140,974 $ — $ 963,531 Depreciation and amortization (1) 64,985 124,697 21,295 — 210,977 (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 general and administrative expenses are allocated to the segments based on usage, with shared expenses apportioned based on the segment's percentage of consolidated revenue. We calculate Segment EBITDA as EBITDA excluding restructuring and acquisition related expenses (which includes restructuring expenses recorded in Cost of goods sold), change in fair value of contingent consideration liabilities, other gains and losses related to acquisitions, equity method investments, or divestitures, equity in losses and earnings of unconsolidated subsidiaries, and impairment charges. EBITDA, which is the basis for Segment EBITDA, is calculated as net income, less net income (loss) attributable to continuing and discontinued noncontrolling interest, excluding discontinued operations and discontinued noncontrolling interest, depreciation, amortization, interest (which includes gains and losses on debt extinguishment) and income tax expense. The table below provides a reconciliation of Net Income to Segment EBITDA (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net income $ 152,593 $ 134,480 $ 403,761 $ 445,109 Less: net (loss) income attributable to continuing noncontrolling interest (46 ) 378 2,321 1,040 Less: net income attributable to discontinued noncontrolling interest 376 — 568 — Net income attributable to LKQ stockholders 152,263 134,102 400,872 444,069 Subtract: Net income from discontinued operations 781 — 1,179 — Net income attributable to discontinued noncontrolling interest (376 ) — (568 ) — Net income from continuing operations attributable to LKQ stockholders 151,858 134,102 400,261 444,069 Add: Depreciation and amortization 71,513 76,701 213,349 196,322 Depreciation and amortization - cost of goods sold 5,223 4,772 15,748 14,655 Depreciation and amortization - restructuring expenses - cost of goods sold 168 — 168 — Depreciation and amortization - restructuring expenses 974 — 974 — Interest expense, net of interest income 31,976 40,860 103,949 107,647 Provision for income taxes 57,747 46,068 165,122 156,427 EBITDA 319,459 302,503 899,571 919,120 Subtract: Equity in earnings (losses) of unconsolidated subsidiaries (1) 4,232 (20,284 ) (33,745 ) (18,326 ) Fair value gain on Mekonomen derivative instrument (1) — 2,509 — 2,509 Gains on bargain purchase — — — 328 Add: Restructuring and acquisition related expenses (2) 7,955 6,614 19,639 26,546 Restructuring expenses - cost of goods sold (3) 17,130 — 17,130 — Inventory step-up adjustment - acquisition related — — — 403 Impairment of net assets held for sale (4) (5) (3,601 ) — 44,919 2,438 Change in fair value of contingent consideration liabilities (225 ) (548 ) 71 (465 ) Segment EBITDA $ 336,486 $ 326,344 $ 1,015,075 $ 963,531 (1) Refer to "Investments in Unconsolidated Subsidiaries" in Note 4, "Financial Statement Information ," for further information. (2) Excludes $1 million of depreciation expense that is reported in Restructuring and acquisition related expenses in our Unaudited Condensed Consolidated Statements of Income. Refer to Note 6, "Restructuring and Acquisition Related Expenses ," for further information. (3) Refer to Note 6, "Restructuring and Acquisition Related Expenses ," for further information. (4) Refer to "Net Assets Held for Sale" in Note 4, "Financial Statement Information ," for further information. (5) In 2018, amounts were recorded in Other income, net in our Unaudited Condensed Consolidated Statements of Income. The following table presents capital expenditures by reportable segment (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Capital Expenditures North America $ 29,430 $ 27,996 $ 83,833 $ 86,864 Europe 30,916 23,904 72,333 69,582 Specialty 3,937 4,442 9,385 15,317 Total capital expenditures $ 64,283 $ 56,342 $ 165,551 $ 171,763 The following table presents assets by reportable segment (in thousands): September 30, December 31, 2019 2018 Receivables, net North America $ 405,218 $ 411,818 Europe 705,031 649,174 Specialty 112,948 93,091 Total receivables, net 1,223,197 1,154,083 Inventories North America 975,561 1,076,306 Europe 1,274,483 1,410,264 Specialty 332,144 349,505 Total inventories 2,582,188 2,836,075 Property, plant and equipment, net North America 582,157 570,508 Europe 516,106 562,600 Specialty 85,925 87,054 Total property, plant and equipment, net 1,184,188 1,220,162 Operating lease assets, net (1) North America 813,412 — Europe 404,444 — Specialty 85,404 — Total operating lease assets, net 1,303,260 — Equity method investments North America 17,275 16,404 Europe (2) 126,734 162,765 Total equity method investments 144,009 179,169 Other unallocated assets 5,974,848 6,003,913 Total assets $ 12,411,690 $ 11,393,402 (1) Refer to Note 13, "Leases ," for further information. (2) Refer to "Investments in Unconsolidated Subsidiaries" in Note 4, "Financial Statement Information ," for further information. We report net receivables; inventories; net property , plant and equipment; net operating lease assets; and equity method investments 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 and cash equivalents, prepaid and other current and noncurrent assets, goodwill and other intangibles. Our largest countries of operation are the U.S., followed by the U.K. and Germany. Additional European operations are located in the Netherlands, Italy, Czech Republic, Belgium, Poland, Slovakia, Austria, and other European countries. Our operations in other countries include 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): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenue United States $ 1,579,691 $ 1,535,557 $ 4,735,134 $ 4,716,927 United Kingdom 394,621 408,474 1,217,199 1,294,155 Germany 394,115 415,748 1,196,527 564,698 Other countries 779,346 762,599 2,347,389 2,298,113 Total revenue $ 3,147,773 $ 3,122,378 $ 9,496,249 $ 8,873,893 The following table sets forth our tangible long-lived assets by geographic area (in thousands): September 30, December 31, 2019 2018 Long-lived assets (1) United States $ 1,485,843 $ 620,125 Germany 295,570 217,476 United Kingdom 306,611 165,145 Other countries 399,424 217,416 Total long-lived assets $ 2,487,448 $ 1,220,162 (1) The increase in long-lived assets is primarily related to the net operating lease assets added as a result of the adoption of the new lease accounting standard. Refer to Note 13, "Leases ," for further information. |
Condensed Consolidating Financi
Condensed Consolidating Financial Information | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Consolidating Financial Information [Abstract] | |
Condensed Financial Statements [Text Block] | Condensed Consolidating Financial Information LKQ Corporation (the "Parent") issued, and the Guarantors have fully and unconditionally guaranteed, jointly and severally, the U.S. Notes (2023) due on May 15, 2023. A Guarantor's guarantee will be unconditionally and automatically released and discharged upon the occurrence of any of the following events: (i) a transfer (including as a result of consolidation or merger) by the Guarantor to any person that is not a Guarantor of all or substantially all assets and properties of such Guarantor, provided the Guarantor is also released from its obligations with respect to indebtedness under the Credit Agreement or other indebtedness of ours, which obligation gave rise to the guarantee of the U.S. Notes (2023); (ii) a transfer (including as a result of consolidation or merger) to any person that is not a Guarantor of the equity interests of a Guarantor or issuance by a Guarantor of its equity interests such that the Guarantor ceases to be a subsidiary, as defined in the U.S. Notes (2023) Indenture, provided the Guarantor is also released from its obligations with respect to indebtedness under the Credit Agreement or other indebtedness of ours, which obligation gave rise to the guarantee of the U.S. Notes (2023); (iii) the release of the Guarantor from its obligations with respect to indebtedness under the Credit Agreement or other indebtedness of ours, which obligation gave rise to the guarantee of the U.S. Notes (2023); and (iv) upon legal defeasance, covenant defeasance or satisfaction and discharge of the U.S. Notes (2023) Indenture, as defined in the U.S. Notes (2023) Indenture. Presented below are the unaudited condensed consolidating financial statements of the Parent, the Guarantors, the non-guarantor subsidiaries (the "Non-Guarantors"), and the elimination entries necessary to present our financial statements on a consolidated basis as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934 resulting from the guarantees of the U.S. Notes (2023). Investments in consolidated subsidiaries have been presented under the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries, intercompany balances, and intercompany revenue and expenses. The unaudited condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the unaudited condensed consolidated financial statements, and may not necessarily be indicative of the financial position, results of operations or cash flows had the Parent, Guarantors and Non-Guarantors operated as independent entities. LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) For the Three Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated Revenue $ — $ 1,593,983 $ 1,593,245 $ (39,455 ) $ 3,147,773 Cost of goods sold — 954,366 1,032,533 (39,455 ) 1,947,444 Gross margin — 639,617 560,712 — 1,200,329 Selling, general and administrative expenses 15,015 442,554 434,555 — 892,124 Restructuring and acquisition related expenses — 426 8,503 — 8,929 Impairment of net assets held for sale — (2,339 ) (1,262 ) — (3,601 ) Depreciation and amortization 285 25,893 45,335 — 71,513 Operating (loss) income (15,300 ) 173,083 73,581 — 231,364 Other expense (income): Interest expense, net of interest income 12,895 (166 ) 19,247 — 31,976 Intercompany interest (income) expense, net (14,899 ) 7,923 6,976 — — Other income, net (929 ) (4,645 ) (365 ) — (5,939 ) Total other (income) expense, net (2,933 ) 3,112 25,858 — 26,037 (Loss) income from continuing operations before (benefit) provision for income taxes (12,367 ) 169,971 47,723 — 205,327 (Benefit) provision for income taxes (2,268 ) 42,515 17,500 — 57,747 Equity in earnings of unconsolidated subsidiaries — 393 3,839 — 4,232 Equity in earnings of subsidiaries 161,581 4,098 — (165,679 ) — Income from continuing operations 151,482 131,947 34,062 (165,679 ) 151,812 Net income from discontinued operations 781 — 781 (781 ) 781 Net income 152,263 131,947 34,843 (166,460 ) 152,593 Less: net loss attributable to continuing noncontrolling interest — — (46 ) — (46 ) Less: net income attributable to discontinued noncontrolling interest — — 376 — 376 Net income attributable to LKQ stockholders $ 152,263 $ 131,947 $ 34,513 $ (166,460 ) $ 152,263 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) For the Three Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Revenue $ — $ 1,550,301 $ 1,609,525 $ (37,448 ) $ 3,122,378 Cost of goods sold — 934,913 1,027,715 (37,448 ) 1,925,180 Gross margin — 615,388 581,810 — 1,197,198 Selling, general and administrative expenses 6,725 434,965 437,460 — 879,150 Restructuring and acquisition related expenses — 1,638 4,976 — 6,614 Depreciation and amortization 34 25,238 51,429 — 76,701 Operating (loss) income (6,759 ) 153,547 87,945 — 234,733 Other expense (income): Interest expense, net of interest income 16,191 (193 ) 24,862 — 40,860 Intercompany interest (income) expense, net (15,121 ) 10,014 5,107 — — Other income, net (178 ) (3,514 ) (3,267 ) — (6,959 ) Total other expense, net 892 6,307 26,702 — 33,901 (Loss) income before (benefit) provision for income taxes (7,651 ) 147,240 61,243 — 200,832 (Benefit) provision for income taxes (12,008 ) 41,875 16,201 — 46,068 Equity in losses of unconsolidated subsidiaries — (156 ) (20,128 ) — (20,284 ) Equity in earnings of subsidiaries 129,745 4,467 — (134,212 ) — Net income 134,102 109,676 24,914 (134,212 ) 134,480 Less: net income attributable to noncontrolling interest — — 378 — 378 Net income attributable to LKQ stockholders $ 134,102 $ 109,676 $ 24,536 $ (134,212 ) $ 134,102 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) For the Nine Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated Revenue $ — $ 4,774,588 $ 4,836,439 $ (114,778 ) $ 9,496,249 Cost of goods sold — 2,850,011 3,105,236 (114,778 ) 5,840,469 Gross margin — 1,924,577 1,731,203 — 3,655,780 Selling, general and administrative expenses 36,744 1,301,827 1,348,453 — 2,687,024 Restructuring and acquisition related expenses — 5,063 15,550 — 20,613 Impairment of net assets held for sale — 39,355 5,564 — 44,919 Depreciation and amortization 377 76,142 136,830 — 213,349 Operating (loss) income (37,121 ) 502,190 224,806 — 689,875 Other expense (income): Interest expense, net of interest income 39,517 (285 ) 64,717 — 103,949 Intercompany interest (income) expense, net (44,748 ) 25,583 19,165 — — Other (income) expense, net (914 ) (16,818 ) 2,209 — (15,523 ) Total other (income) expense, net (6,145 ) 8,480 86,091 — 88,426 (Loss) income from continuing operations before (benefit) provision for income taxes (30,976 ) 493,710 138,715 — 601,449 (Benefit) provision for income taxes (7,306 ) 128,936 43,492 — 165,122 Equity in earnings (losses) of unconsolidated subsidiaries — 871 (34,616 ) — (33,745 ) Equity in earnings of subsidiaries 423,363 13,210 — (436,573 ) — Income from continuing operations 399,693 378,855 60,607 (436,573 ) 402,582 Net income from discontinued operations 1,179 — 1,179 (1,179 ) 1,179 Net income 400,872 378,855 61,786 (437,752 ) 403,761 Less: net income attributable to continuing noncontrolling interest — — 2,321 — 2,321 Less: net income attributable to discontinued noncontrolling interest — — 568 — 568 Net income attributable to LKQ stockholders $ 400,872 $ 378,855 $ 58,897 $ (437,752 ) $ 400,872 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) For the Nine Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Revenue $ — $ 4,768,292 $ 4,216,417 $ (110,816 ) $ 8,873,893 Cost of goods sold — 2,869,499 2,702,162 (110,816 ) 5,460,845 Gross margin — 1,898,793 1,514,255 — 3,413,048 Selling, general and administrative expenses 25,538 1,292,455 1,154,092 — 2,472,085 Restructuring and acquisition related expenses — 1,968 24,578 — 26,546 Depreciation and amortization 84 74,102 122,136 — 196,322 Operating (loss) income (25,622 ) 530,268 213,449 — 718,095 Other expense (income): Interest expense, net of interest income 52,004 (94 ) 55,737 — 107,647 Intercompany interest (income) expense, net (45,927 ) 29,559 16,368 — — Other (income) expense, net (1,076 ) (13,793 ) 5,455 — (9,414 ) Total other expense, net 5,001 15,672 77,560 — 98,233 (Loss) income before (benefit) provision for income taxes (30,623 ) 514,596 135,889 — 619,862 (Benefit) provision for income taxes (19,656 ) 141,295 34,788 — 156,427 Equity in losses of unconsolidated subsidiaries — (156 ) (18,170 ) — (18,326 ) Equity in earnings of subsidiaries 455,036 14,028 — (469,064 ) — Net income 444,069 387,173 82,931 (469,064 ) 445,109 Less: net income attributable to noncontrolling interest — — 1,040 — 1,040 Net income attributable to LKQ stockholders $ 444,069 $ 387,173 $ 81,891 $ (469,064 ) $ 444,069 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) For the Three Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated Net income $ 152,263 $ 131,947 $ 34,843 $ (166,460 ) $ 152,593 Less: net loss attributable to continuing noncontrolling interest — — (46 ) — (46 ) Less: net income attributable to discontinued noncontrolling interest — — 376 — 376 Net income attributable to LKQ stockholders 152,263 131,947 34,513 (166,460 ) 152,263 Other comprehensive (loss) income: Foreign currency translation, net of tax (69,819 ) (1,429 ) (69,520 ) 70,949 (69,819 ) Net change in unrealized gains/losses on cash flow hedges, net of tax (1,261 ) — — — (1,261 ) Net change in unrealized gains/losses on pension plans, net of tax (2,353 ) (2,385 ) 32 2,353 (2,353 ) Net change in other comprehensive income from unconsolidated subsidiaries 1,240 — 1,240 (1,240 ) 1,240 Other comprehensive loss (72,193 ) (3,814 ) (68,248 ) 72,062 (72,193 ) Comprehensive income (loss) 80,070 128,133 (33,405 ) (94,398 ) 80,400 Less: comprehensive loss attributable to continuing noncontrolling interest — — (46 ) — (46 ) Less: comprehensive income attributable to discontinued noncontrolling interest — — 376 — 376 Comprehensive income (loss) attributable to LKQ stockholders $ 80,070 $ 128,133 $ (33,735 ) $ (94,398 ) $ 80,070 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) For the Three Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Net income $ 134,102 $ 109,676 $ 24,914 $ (134,212 ) $ 134,480 Less: net income attributable to continuing noncontrolling interest — — 378 — 378 Net income attributable to LKQ stockholders 134,102 109,676 24,536 (134,212 ) 134,102 Other comprehensive (loss) income: Foreign currency translation, net of tax (20,951 ) 1,686 (23,901 ) 22,215 (20,951 ) Net change in unrealized gains/losses on cash flow hedges, net of tax 304 — — — 304 Net change in unrealized gains/losses on pension plans, net of tax 1,274 1,246 28 (1,274 ) 1,274 Net change in other comprehensive income from unconsolidated subsidiaries 643 — 643 (643 ) 643 Other comprehensive (loss) income (18,730 ) 2,932 (23,230 ) 20,298 (18,730 ) Comprehensive income 115,372 112,608 1,684 (113,914 ) 115,750 Less: comprehensive income attributable to continuing noncontrolling interest — — 378 — 378 Comprehensive income attributable to LKQ stockholders $ 115,372 $ 112,608 $ 1,306 $ (113,914 ) $ 115,372 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) For the Nine Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated Net income $ 400,872 $ 378,855 $ 61,786 $ (437,752 ) $ 403,761 Less: net income attributable to continuing noncontrolling interest — — 2,321 — 2,321 Less: net income attributable to discontinued noncontrolling interest — — 568 — 568 Net income attributable to LKQ stockholders 400,872 378,855 58,897 (437,752 ) 400,872 Other comprehensive (loss) income: Foreign currency translation, net of tax (74,112 ) 3,107 (74,900 ) 71,793 (74,112 ) Net change in unrealized gains/losses on cash flow hedges, net of tax (9,648 ) — — — (9,648 ) Net change in unrealized gains/losses on pension plans, net of tax (2,134 ) (2,399 ) 265 2,134 (2,134 ) Net change in other comprehensive income from unconsolidated subsidiaries 98 — 98 (98 ) 98 Other comprehensive (loss) income (85,796 ) 708 (74,537 ) 73,829 (85,796 ) Comprehensive income (loss) 315,076 379,563 (12,751 ) (363,923 ) 317,965 Less: comprehensive income attributable to continuing noncontrolling interest — — 2,321 — 2,321 Less: comprehensive income attributable to discontinued noncontrolling interest — — 568 — 568 Comprehensive income (loss) attributable to LKQ stockholders $ 315,076 $ 379,563 $ (15,640 ) $ (363,923 ) $ 315,076 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) For the Nine Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Net income $ 444,069 $ 387,173 $ 82,931 $ (469,064 ) $ 445,109 Less: net income attributable to continuing noncontrolling interest — — 1,040 — 1,040 Net income attributable to LKQ stockholders 444,069 387,173 81,891 (469,064 ) 444,069 Other comprehensive (loss) income: Foreign currency translation, net of tax (77,630 ) (2,800 ) (81,456 ) 84,256 (77,630 ) Net change in unrealized gains/losses on cash flow hedges, net of tax 5,964 — — — 5,964 Net change in unrealized gains/losses on pension plans, net of tax (154 ) (239 ) 85 154 (154 ) Net change in other comprehensive income from unconsolidated subsidiaries 2,160 — 2,160 (2,160 ) 2,160 Other comprehensive loss (69,660 ) (3,039 ) (79,211 ) 82,250 (69,660 ) Comprehensive income 374,409 384,134 3,720 (386,814 ) 375,449 Less: comprehensive income attributable to continuing noncontrolling interest — — 1,040 — 1,040 Comprehensive income attributable to LKQ stockholders $ 374,409 $ 384,134 $ 2,680 $ (386,814 ) $ 374,409 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Balance Sheets (In thousands) September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 141,555 $ 31,533 $ 260,303 $ — $ 433,391 Receivables, net — 337,543 885,654 — 1,223,197 Intercompany receivables, net 9,473 — 27,939 (37,412 ) — Inventories — 1,228,576 1,353,612 — 2,582,188 Prepaid expenses and other current assets 6,347 95,389 143,346 — 245,082 Total current assets 157,375 1,693,041 2,670,854 (37,412 ) 4,483,858 Property, plant and equipment, net 459 612,127 571,602 — 1,184,188 Operating lease assets, net 3,754 854,956 444,550 — 1,303,260 Intangible assets: Goodwill — 2,001,356 2,308,466 — 4,309,822 Other intangibles, net 629 254,255 582,388 — 837,272 Investment in subsidiaries 5,250,321 127,820 — (5,378,141 ) — Intercompany notes receivable 1,118,688 108,071 — (1,226,759 ) — Equity method investments — 17,275 126,734 — 144,009 Other noncurrent assets 65,679 40,503 43,099 — 149,281 Total assets $ 6,596,905 $ 5,709,404 $ 6,747,693 $ (6,642,312 ) $ 12,411,690 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,802 $ 346,907 $ 648,165 $ — $ 997,874 Intercompany payables, net — 27,939 9,473 (37,412 ) — Accrued expenses: Accrued payroll-related liabilities 6,911 55,803 99,438 — 162,152 Refund liability — 49,526 50,801 — 100,327 Other accrued expenses 14,965 115,571 196,098 — 326,634 Other current liabilities 5,520 22,723 85,106 — 113,349 Current portion of operating lease liabilities 217 131,719 93,636 — 225,572 Current portion of long-term obligations 15,029 2,936 110,178 — 128,143 Total current liabilities 45,444 753,124 1,292,895 (37,412 ) 2,054,051 Long-term operating lease liabilities, excluding current portion 3,943 756,450 369,030 — 1,129,423 Long-term obligations, excluding current portion 1,613,249 15,533 2,108,330 — 3,737,112 Intercompany notes payable — 537,341 689,418 (1,226,759 ) — Deferred income taxes 5,032 139,482 151,685 — 296,199 Other noncurrent liabilities 111,470 82,835 127,900 — 322,205 Stockholders' equity: Total Company stockholders' equity 4,817,767 3,424,639 1,953,502 (5,378,141 ) 4,817,767 Noncontrolling interest — — 54,933 — 54,933 Total stockholders' equity 4,817,767 3,424,639 2,008,435 (5,378,141 ) 4,872,700 Total liabilities and stockholders' equity $ 6,596,905 $ 5,709,404 $ 6,747,693 $ (6,642,312 ) $ 12,411,690 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Balance Sheets (In thousands) December 31, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 25,633 $ 29,285 $ 276,843 $ — $ 331,761 Receivables, net 310 316,726 837,047 — 1,154,083 Intercompany receivables, net 6,978 — 12,880 (19,858 ) — Inventories — 1,343,612 1,492,463 — 2,836,075 Prepaid expenses and other current assets 18,611 99,356 81,063 — 199,030 Total current assets 51,532 1,788,979 2,700,296 (19,858 ) 4,520,949 Property, plant and equipment, net 1,547 600,054 618,561 — 1,220,162 Intangible assets: Goodwill — 1,973,364 2,408,094 — 4,381,458 Other intangibles, net 260 272,451 656,041 — 928,752 Investment in subsidiaries 5,224,006 111,826 — (5,335,832 ) — Intercompany notes receivable 1,220,582 10,515 — (1,231,097 ) — Equity method investments — 16,404 162,765 — 179,169 Other noncurrent assets 70,283 40,548 52,081 — 162,912 Total assets $ 6,568,210 $ 4,814,141 $ 6,597,838 $ (6,586,787 ) $ 11,393,402 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,454 $ 343,116 $ 596,828 $ — $ 942,398 Intercompany payables, net — 12,880 6,978 (19,858 ) — Accrued expenses: Accrued payroll-related liabilities 6,652 70,267 95,086 — 172,005 Refund liability — 50,899 53,686 — 104,585 Other accrued expenses 5,454 105,672 177,299 — 288,425 Other current liabilities 283 17,860 42,966 — 61,109 Current portion of long-term obligations 8,459 2,932 110,435 — 121,826 Total current liabilities 23,302 603,626 1,083,278 (19,858 ) 1,690,348 Long-term obligations, excluding current portion 1,628,677 13,532 2,546,465 — 4,188,674 Intercompany notes payable — 597,283 633,814 (1,231,097 ) — Deferred income taxes 8,045 135,355 168,034 — 311,434 Other noncurrent liabilities 125,888 99,147 139,159 — 364,194 Stockholders' equity: Total Company stockholders' equity 4,782,298 3,365,198 1,970,634 (5,335,832 ) 4,782,298 Noncontrolling interest — — 56,454 — 56,454 Total stockholders' equity 4,782,298 3,365,198 2,027,088 (5,335,832 ) 4,838,752 Total liabilities and stockholders' equity $ 6,568,210 $ 4,814,141 $ 6,597,838 $ (6,586,787 ) $ 11,393,402 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Cash Flows (In thousands) For the Nine Months Ended September 30, 2019 Parent Guarantors Non-Guarantors (1) Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 404,790 $ 196,160 $ 451,224 $ (87,003 ) $ 965,171 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment (563 ) (86,713 ) (78,275 ) — (165,551 ) Investment and intercompany note activity with subsidiaries 33,838 — — (33,838 ) — Acquisitions, net of cash acquired — (10,118 ) (4,399 ) — (14,517 ) Proceeds from disposal of businesses, net — 19,682 (177 ) — 19,505 Investments in unconsolidated subsidiaries — (2,550 ) (4,344 ) — (6,894 ) Receipts of deferred purchase price on receivables under factoring arrangements — 264,998 — (264,998 ) — Other investing activities, net 966 2,318 4,084 — 7,368 Net cash provided by (used in) investing activities 34,241 187,617 (83,111 ) (298,836 ) (160,089 ) CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of treasury stock (291,813 ) — — — (291,813 ) Borrowings under revolving credit facilities 216,000 — 174,275 — 390,275 Repayments under revolving credit facilities (220,896 ) — (392,862 ) — (613,758 ) Repayments under term loans (6,563 ) — — — (6,563 ) Borrowings under receivables securitization facility — — 36,600 — 36,600 Repayments under receivables securitization facility — — (146,600 ) — (146,600 ) Payment of notes issued from acquisitions (19,123 ) — — — (19,123 ) Repayments of other debt, net (747 ) (908 ) (29,932 ) — (31,587 ) Other financing activities, net 33 — (7,158 ) — (7,125 ) Investment and intercompany note activity with parent — (29,242 ) (4,596 ) 33,838 — Dividends — (352,001 ) — 352,001 — Net cash used in financing activities (323,109 ) (382,151 ) (370,273 ) 385,839 (689,694 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — 622 (10,324 ) — (9,702 ) Net increase (decrease) in cash, cash equivalents and restricted cash 115,922 2,248 (12,484 ) — 105,686 Cash, cash equivalents and restricted cash of continuing operations, beginning of period 25,633 29,285 282,332 — 337,250 Cash, cash equivalents and restricted cash of continuing and discontinued operations, end of period 141,555 31,533 269,848 — 442,936 Less: Cash and cash equivalents of discontinued operations, end of period — — 4,328 — 4,328 Cash, cash equivalents and restricted cash, end of period $ 141,555 $ 31,533 $ 265,520 $ — $ 438,608 (1) Restricted cash is only included in the unaudited condensed consolidating financial statements of the Non-Guarantors. LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Cash Flows (In thousands) For the Nine Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 334,226 $ 142,626 $ 97,506 $ (53,191 ) $ 521,167 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment (315 ) (93,063 ) (78,385 ) — (171,763 ) Investment and intercompany note activity with subsidiaries 73,096 — — (73,096 ) — Return of investment in subsidiaries 152,443 — — (152,443 ) — Acquisitions, net of cash acquired — (2,888 ) (1,203,179 ) — (1,206,067 ) Investments in unconsolidated subsidiaries — (11,066 ) — — (11,066 ) Receipts of deferred purchase price on receivables under factoring arrangements — 224,753 9,410 (224,753 ) 9,410 Other investing activities, net 887 2,162 4,921 — 7,970 Net cash provided by (used in) investing activities 226,111 119,898 (1,267,233 ) (450,292 ) (1,371,516 ) CASH FLOWS FROM FINANCING ACTIVITIES: Debt issuance costs (1,354 ) — (15,584 ) — (16,938 ) Proceeds from issuance of Euro Notes (2026/28) — — 1,232,100 — 1,232,100 Borrowings under revolving credit facilities 304,000 — 721,496 — 1,025,496 Repayments under revolving credit facilities (732,897 ) — (377,138 ) — (1,110,035 ) Repayments under term loans (114,800 ) — — — (114,800 ) (Repayments) borrowings of other debt, net (385 ) 101 (38,411 ) — (38,695 ) Other financing activities, net (996 ) — 3,182 — 2,186 Investment and intercompany note activity with parent — (62,763 ) (10,333 ) 73,096 — Dividends — (203,448 ) (226,939 ) 430,387 — Net cash (used in) provided by financing activities (546,432 ) (266,110 ) 1,288,373 503,483 979,314 Effect of exchange rate changes on cash and cash equivalents — (463 ) (66,922 ) — (67,385 ) Net increase (decrease) in cash and cash equivalents 13,905 (4,049 ) 51,724 — 61,580 Cash and cash equivalents, beginning of period 34,360 35,131 210,275 — 279,766 Cash and cash equivalents, end of period $ 48,265 $ 31,082 $ 261,999 $ — $ 341,346 |
Financial Statement Informati_2
Financial Statement Information Receivables (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Receivables [Abstract] | |
Receivable [Policy Text Block] | Allowance for Doubtful Accounts We have a reserve for uncollectible accounts, which was approximately $50 million and $57 million at September 30, 2019 and December 31, 2018 , respectively. |
Financial Statement Informati_3
Financial Statement Information Inventories (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Inventory [Abstract] | |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist of the following (in thousands): September 30, December 31, 2019 2018 Aftermarket and refurbished products $ 2,117,275 $ 2,309,458 Salvage and remanufactured products 438,845 503,199 Manufactured products 26,068 23,418 Total inventories $ 2,582,188 $ 2,836,075 Aftermarket and refurbished products and salvage and remanufactured products are primarily composed of finished goods. As of September 30, 2019 , manufactured products inventory was composed of $17 million of raw materials, $3 million of work in process, and $6 million of finished goods. As of December 31, 2018 , manufactured products inventory was composed of $17 million of raw materials, $2 million of work in process, and $4 million of finished goods. |
Financial Statement Informati_4
Financial Statement Information Net Assets Held for Sale (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | During the first six months of 2019, we committed to plans to sell certain businesses in our North America and Europe segments. As a result, these businesses were classified as net assets held for sale and were required to be adjusted to the lower of fair value less cost to sell or carrying value, resulting in impairment charges totaling $49 million through the six months ended June 30, 2019 (presented in Impairment of net assets held for sale in the Unaudited Condensed Consolidated Statement of Income). In the third quarter of 2019, we completed the sales of two of these businesses, our aviation business in North America and a wholesale business in Bulgaria. The proceeds exceeded our prior fair value estimates, resulting in a net $4 million reduction of previously reported impairment charges for the three months ended September 30, 2019 and a net $45 million impairment charge for the nine months ended September 30, 2019 . The disposed businesses were immaterial, generating annualized revenue of approximately $55 million during the twelve-month period ended September 30, 2019 . Excluding the Stahlgruber Czech Republic wholesale business discussed in Note 3, "Discontinued Operations ," as of September 30, 2019 , there were $13 million of assets held for sale, including $3 million of goodwill that was reclassified as held for sale related to our Europe segment, and $4 million of liabilities held for sale, which were recorded within Prepaid expenses and other current assets and Other current liabilities, respectively, on the Unaudited Condensed Consolidated Balance Sheet. We expect the remaining assets held for sale to be disposed of during the next twelve months. The remaining assets held for sale generated annualized revenue of approximately $84 million during the twelve-month period ended September 30, 2019 . We are required to record net assets of our held for sale businesses at the lower of fair value less cost to sell or carrying value. Fair values were based on projected discounted cash flows and/or estimated selling prices. Management's assumptions for our discounted cash flow analysis of the businesses were based on projected revenues and profits, tax rates, capital expenditures, working capital requirements and discount rates. For businesses for which we utilized estimated selling prices to calculate the fair value, the inputs to our estimates included projected market multiples and any reasonable offers. Due to uncertainties in the estimation process, it is possible that actual results could differ from the estimates used in our analysis. The inputs utilized in the fair value estimates are classified as Level 3 within the fair value hierarchy. The fair values of the net assets were measured on a non-recurring basis as of September 30, 2019. |
Financial Statement Informati_5
Financial Statement Information Investments in Unconsolidated Subsidiaries (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Investments in Unconsolidated Subsidiaries [Abstract] | |
Noncontrolling Interest Disclosure [Text Block] | In July 2019, we purchased substantially all of the noncontrolling interest of a subsidiary acquired in connection with the Stahlgruber acquisition for a purchase price of $19 million , which included the issuance of $14 million of notes payable. This purchase resulted in a net decrease to Noncontrolling interest of $10 million and a decrease to Additional paid-in capital of $9 million in our unaudited condensed consolidated financial statements as of September 30, 2019. |
Equity Method Investments [Policy Text Block] | Investments in Unconsolidated Subsidiaries Our investment in unconsolidated subsidiaries was $144 million and $179 million as of September 30, 2019 and December 31, 2018 , respectively. Europe Segment Our investment in unconsolidated subsidiaries in Europe was $127 million and $163 million as of September 30, 2019 and December 31, 2018, respectively. We recorded equity in earnings of $4 million and equity in losses of $35 million during the three and nine months ended September 30, 2019 , respectively, and equity in losses of $20 million and $ 18 million during the three and nine months ended September 30, 2018 , respectively, related to our investments in unconsolidated subsidiaries in our Europe segment, mainly related to our investment in Mekonomen AB ("Mekonomen"). On December 1, 2016 , we acquired a 26.5% equity interest in Mekonomen for an aggregate purchase price of $181 million . In October 2018, we acquired an additional $48 million of equity in Mekonomen at a discounted share price as part of its rights issue, increasing our equity interest to 26.6% . We are accounting for our interest in Mekonomen using the equity method of accounting, as our investment gives us the ability to exercise significant influence, but not control, over the investee. As of September 30, 2019, our share of the book value of Mekonomen's net assets exceeded the book value of our investment in Mekonomen by $5 million ; this difference is primarily related to Mekonomen's Accumulated Other Comprehensive Income balance as of our acquisition date in 2016. We are recording our equity in the net earnings of Mekonomen on a one quarter lag. During the three months ended March 31, 2019 and September 30, 2018, we recognized other-than-temporary impairment charges of $40 million and $23 million , respectively, which represented the difference in the carrying value and the fair value of our investment in Mekonomen. The fair value of our investment in Mekonomen was determined using the Mekonomen share prices of SEK 65 and SEK 126 as of March 31, 2019 and September 30, 2018, respectively. The impairment charges are recorded in Equity in earnings (losses) of unconsolidated subsidiaries in our Unaudited Condensed Consolidated Statements of Income. In May 2018, we received a cash dividend of $8 million (SEK 67 million ) related to our investment in Mekonomen. Mekonomen announced in February 2019 that the Mekonomen Board of Directors has proposed no dividend payment in 2019. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at September 30, 2019 was $126 million (using the Mekonomen share price of SEK 83 as of September 30, 2019) compared to a carrying value of $115 million . In 2018, we participated in a ri ghts issue with preferential rights for Mekonomen's existing shareholders, who were given the right to subscribe for four new Mekonomen shares per seven existing owned shares at a discounted share price. As of September 30, 2018, we recorded a derivative instrument of $29 million in Other noncurrent assets on our Unaudited Condensed Consolidated Balance Sheets, which represented our right to acquire Mekonomen shares at a discount. We measured the derivative instrument at fair value, and we recorded a $3 million gain on our fair value remeasurement during the three months ended September 30, 2018; the gain was recorded in Other income, net in the Unaudited Condensed Consolidated Statements of Income. North America Segment Our investment in unconsolidated subsidiaries in the North America segment was $17 million and $16 million as of September 30, 2019 and December 31, 2018 , respectively. The equity in earnings for the North America equity investments was immaterial during each of the three and nine months ended September 30, 2019 and 2018. |
Financial Statement Informati_6
Financial Statement Information Warranty Reserve (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Warranty Reserve [Abstract] | |
Standard Product Warranty And Extended Product Warranty Policy Policy [Policy Text Block] | Warranty Reserve Some of our salvage mechanical products are sold with a standard six month warranty against defects. Additionally, some of our remanufactured engines are sold with a standard three year warranty against defects. We also provide a limited lifetime warranty for certain of our aftermarket products. These assurance-type warranties are not considered a separate performance obligation, and thus no transaction price is allocated to them. We record the warranty costs in Cost of goods sold in our Unaudited Condensed Consolidated Statements of Income. Our warranty reserve is calculated using historical claim information to project future warranty claims activity and is recorded within Other accrued expenses and Other noncurrent liabilities on our Unaudited Condensed Consolidated Balance Sheets based on the expected timing of the related payments. The changes in the warranty reserve are as follows (in thousands): Balance as of December 31, 2018 $ 23,262 Warranty expense 43,883 Warranty claims (39,969 ) Balance as of September 30, 2019 $ 27,176 |
Financial Statement Informati_7
Financial Statement Information Litigation and Related Contingencies (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Litigation and Related Contingencies [Abstract] | |
Commitments and Contingencies, Policy [Policy Text Block] | Litigation and Related Contingencies We have certain contingencies resulting from litigation, claims and other commitments and are subject to a variety of environmental and pollution control laws and regulations incident to the ordinary course of business. We currently expect that the resolution of such contingencies will not materially affect our financial position, results of operations or cash flows. |
Financial Statement Informati_8
Financial Statement Information Treasury Stock (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Treasury Stock [Abstract] | |
Stockholders' Equity, Policy [Policy Text Block] | On October 25, 2018, our Board of Directors authorized a stock repurchase program under which we may purchase up to $500 million of our common stock from time to time through October 25, 2021. Repurchases under the program may be made in the open market or in privately negotiated transactions, with the amount and timing of repurchases depending on market conditions and corporate needs. The repurchase program does not obligate us to acquire any specific number of shares and may be suspended or discontinued at any time. Delaware law imposes restrictions on stock repurchases. During the nine months ended September 30, 2019 , we repurchased 10.9 million shares of common stock for an aggregate price of $292 million . During 2018, we repurchased 2.3 million shares of common stock for an aggregate price of $60 million . As of September 30, 2019 , there was $148 million of remaining capacity under our repurchase program. Repurchased shares are accounted for as treasury stock using the cost method. On October 25, 2019, our Board of Directors authorized an increase to our existing stock repurchase program under which the Company may purchase up to an additional $500 million of our common stock from time to time through October 25, 2022; this extended date also applies to the original repurchase program. With the increase, the Board of Directors has authorized a total of $1.0 billion |
Financial Statement Informati_9
Financial Statement Information Adoption of New Lease Standard (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Adoption of New Lease Standard [Abstract] | |
Cumulative Effect of Adoption of ASC 842 on Consolidated Financial Statements [Policy Text Block] | In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2016-02, "Leases" ("ASU 2016-02"), which represents the FASB Accounting Standard Codification Topic 842 ("ASC 842"), to increase transparency and comparability by recognizing lease assets and lease liabilities on the Unaudited Condensed Consolidated Balance Sheets and disclosing key information about leasing arrangements. The main difference between the prior standard and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under the prior standard. We adopted the standard in the first quarter of 2019 using the modified retrospective approach and took advantage of the transition package of practical expedients permitted within the new standard, which, among other things, allows us to carryforward the historical lease classification. For leases with a term of 12 months or less, we elected the short-term lease exemption, which allowed us to not recognize right-of-use assets or lease liabilities for qualifying leases existing at transition and new leases we may enter into in the future. Additionally, we adopted the practical expedient to combine lease and non-lease components. As of January 1, 2019, we recorded both an operating lease asset and operating lease liability of $1.3 billion . The preexisting deferred rent liability balances from the historical straight-line treatment of operating leases was reclassified as a reduction of the lease asset upon adoption. The adoption of the standard did not materially affect our Unaudited Condensed Consolidated Statements of Income or Statements of Cash Flows as operating lease payments will still be an operating cash outflow and capital lease payments will still be a financing cash outflow. The new standard did not have a material impact on our liquidity. The standard will have no impact on our debt covenant compliance under our current agreements as the covenant calculations are based on the prior lease accounting rules. |
Financial Statement Informat_10
Financial Statement Information Recent Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements Policy [Policy Text Block] | Recent Accounting Pronouncements Adoption of New Lease Standard In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2016-02, "Leases" ("ASU 2016-02"), which represents the FASB Accounting Standard Codification Topic 842 ("ASC 842"), to increase transparency and comparability by recognizing lease assets and lease liabilities on the Unaudited Condensed Consolidated Balance Sheets and disclosing key information about leasing arrangements. The main difference between the prior standard and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under the prior standard. We adopted the standard in the first quarter of 2019 using the modified retrospective approach and took advantage of the transition package of practical expedients permitted within the new standard, which, among other things, allows us to carryforward the historical lease classification. For leases with a term of 12 months or less, we elected the short-term lease exemption, which allowed us to not recognize right-of-use assets or lease liabilities for qualifying leases existing at transition and new leases we may enter into in the future. Additionally, we adopted the practical expedient to combine lease and non-lease components. As of January 1, 2019, we recorded both an operating lease asset and operating lease liability of $1.3 billion . The preexisting deferred rent liability balances from the historical straight-line treatment of operating leases was reclassified as a reduction of the lease asset upon adoption. The adoption of the standard did not materially affect our Unaudited Condensed Consolidated Statements of Income or Statements of Cash Flows as operating lease payments will still be an operating cash outflow and capital lease payments will still be a financing cash outflow. The new standard did not have a material impact on our liquidity. The standard will have no impact on our debt covenant compliance under our current agreements as the covenant calculations are based on the prior lease accounting rules. Other Recently Adopted Accounting Pronouncements During the first quarter of 2019, we adopted ASU No. 2017-12, "Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"), which amends the hedge accounting recognition and presentation requirements in ASC 815 ("Derivatives and Hedging"). ASU 2017-12 significantly alters the hedge accounting model by making it easier for an entity to achieve and maintain hedge accounting and provides for accounting that better reflects an entity's risk management activities. We adopted the provisions of ASU 2017-12 by applying a modified retrospective approach to existing hedging relationships as of the adoption date. The adoption of ASU 2017-12 did not have a material impact on our unaudited condensed consolidated financial statements. Recently Issued Accounting Pronouncements In August 2018, the FASB issued ASU No. 2018-13, "Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement" ("ASU 2018-13"), which removes, modifies, and adds certain disclosure requirements in ASC 820. ASU 2018-13 is effective for fiscal years and interim periods beginning after December 15, 2019; early adoption is permitted. We are in the process of evaluating the impact of this standard on our disclosures but do not currently believe that it will have a material impact. In June 2016, the FASB issued ASU 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" ("ASU 2016-13"), and in November 2018 issued a subsequent amendment, ASU 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses" ("ASU 2018-19"). ASU 2016-13 significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 will replace today’s “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. ASU 2018-19 will affect loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, reinsurance receivables, and any other financial assets not excluded from the scope of this amendment that represent the contractual right to receive cash. ASU 2016-13 and ASU 2018-19 should be applied on either a prospective transition or modified-retrospective approach depending on the subtopic. ASU 2016-13 is effective for annual periods beginning after December 15, 2019, and interim periods therein. Early adoption is permitted for annual periods beginning after December 15, 2018, and interim periods therein. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Policies) | 9 Months Ended |
Sep. 30, 2019 | |
Revenue Recognition [Abstract] | |
Revenue [Policy Text Block] | Revenue Recognition The majority of our revenue is derived from the sale of vehicle parts. We recognize revenue when the products are shipped to, delivered to or picked up by customers, which is the point when title has transferred and risk of ownership has passed. Sources of Revenue We report our revenue in two categories: (i) parts and services and (ii) other. The following table sets forth our revenue by category, with our parts and services revenue further disaggregated by reportable segment (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 North America $ 1,145,402 $ 1,109,067 $ 3,466,582 $ 3,447,074 Europe 1,446,392 1,464,049 4,398,185 3,781,091 Specialty 394,204 388,865 1,157,023 1,151,172 Parts and services 2,985,998 2,961,981 9,021,790 8,379,337 Other 161,775 160,397 474,459 494,556 Total revenue $ 3,147,773 $ 3,122,378 $ 9,496,249 $ 8,873,893 Parts and Services Our parts revenue is generated from the sale of vehicle products including replacement parts, components and systems used in the repair and maintenance of vehicles and specialty products and accessories to improve the performance, functionality and appearance of vehicles. Services revenue includes (i) additional services that are generally billed concurrently with the related product sales, such as the sale of service-type warranties, (ii) fees for admission to our self service yards, and (iii) diagnostic and repair services. In North America, our vehicle replacement products include sheet metal collision parts such as doors, hoods, and fenders; bumper covers; head and tail lamps; automotive glass products such as windshields; mirrors and grilles; wheels; and large mechanical items such as engines and transmissions. In Europe, our products include a wide variety of small mechanical products such as brake pads, discs and sensors; clutches; electrical products such as spark plugs and batteries; steering and suspension products; filters; and oil and automotive fluids. In our Specialty operations, we serve six product segments: truck and off-road; speed and performance; RV; towing; wheels, tires and performance handling; and miscellaneous accessories. Our service-type warranties typically have service periods ranging from 6 months to 36 months . Under FASB Accounting Standards Codification Topic 606 ("ASC 606"), proceeds from these service-type warranties are deferred at contract inception and amortized on a straight-line basis to revenue over the contract period. The changes in deferred service-type warranty revenue are as follows (in thousands): Balance as of January 1, 2019 $ 24,006 Additional warranty revenue deferred 32,118 Warranty revenue recognized (29,469 ) Balance as of September 30, 2019 $ 26,655 Other Revenue Revenue from other sources includes scrap sales, bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from our furnace operations. We derive scrap metal from several sources, including vehicles that have been used in both our wholesale and self service recycling operations and from original equipment manufacturers ("OEMs") and other entities that contract with us for secure disposal of "crush only" vehicles. The sale of hulks in our wholesale and self service recycling operations represents one performance obligation, and revenue is recognized based on a price per weight when the customer (processor) collects the scrap. Some adjustments may occur when the customer weighs the scrap at their location, and revenue is adjusted accordingly. Revenue by Geographic Area See Note 16, "Segment and Geographic Information " for information related to our revenue by geographic region. Variable Consideration The amount of revenue ultimately received from the customer can vary due to variable consideration which includes returns, discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, or other similar items. Under ASC 606 we are required to select the “expected value method” or the “most likely amount” method in order to estimate variable consideration. We utilize both methods in practice depending on the type of variable consideration, with contemplation of any expected reversals in revenue. We recorded a refund liability and return asset for expected returns of $100 million and $54 million , respectively, as of September 30, 2019 , and $105 million and $56 million , respectively, as of December 31, 2018 . The refund liability is presented separately on the balance sheet within current liabilities while the return asset is presented within Prepaid expenses and other current assets. Other types of variable consideration consist primarily of discounts, volume rebates, and other customer sales incentives which are recorded in Receivables, net on the Unaudited Condensed Consolidated Balance Sheets. We recorded a reserve for our variable consideration of $106 million and $103 million as of September 30, 2019 and December 31, 2018 , respectively. While other customer incentive programs exist, we characterize them as material rights in the context of our sales transactions. We consider these programs to be immaterial to our unaudited condensed consolidated financial statements. |
Business Combinations (Tables)
Business Combinations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The purchase price allocations for the acquisitions completed during the year ended December 31, 2018 are as follows (in thousands): Year Ended December 31, 2018 Stahlgruber Other Acquisitions (1) Total Receivables $ 144,826 $ 19,171 $ 163,997 Receivable reserves (2,818 ) (918 ) (3,736 ) Inventories 380,238 14,021 394,259 Prepaid expenses and other current assets 10,970 1,851 12,821 Property , plant and equipment 271,292 5,711 277,003 Goodwill 908,253 64,637 972,890 Other intangibles 285,255 35,159 320,414 Other noncurrent assets 16,625 37 16,662 Deferred income taxes (78,130 ) (5,285 ) (83,415 ) Current liabilities assumed (346,788 ) (20,116 ) (366,904 ) Debt assumed (79,925 ) (4,875 ) (84,800 ) Other noncurrent liabilities assumed (2) (80,824 ) (10,306 ) (91,130 ) Noncontrolling interest (44,110 ) — (44,110 ) Contingent consideration liabilities — (3,107 ) (3,107 ) Other purchase price obligations (6,084 ) 3,623 (2,461 ) Stock issued (251,334 ) — (251,334 ) Notes issued — (11,347 ) (11,347 ) Gains on bargain purchases (3) — (2,418 ) (2,418 ) Settlement of other purchase price obligations (non-interest bearing) — 1,711 1,711 Cash used in acquisitions, net of cash and restricted cash acquired $ 1,127,446 $ 87,549 $ 1,214,995 |
Business Acquisition, Pro Forma Information [Table Text Block] | The pro forma adjustments are based upon unaudited financial information of the acquired entities (in thousands, except per share data): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenue, as reported $ 3,147,773 $ 3,122,378 $ 9,496,249 $ 8,873,893 Revenue of purchased businesses for the period prior to acquisition: Stahlgruber — — — 815,405 Other acquisitions — 33,708 16,481 133,545 Pro forma revenue $ 3,147,773 $ 3,156,086 $ 9,512,730 $ 9,822,843 Income from continuing operations, as reported (1) $ 151,812 $ 134,480 $ 402,582 $ 445,109 Income from continuing operations of purchased businesses for the period prior to acquisition, and pro forma purchase accounting adjustments: Stahlgruber 4,368 5,624 10,484 14,114 Other acquisitions 314 1,863 2,161 4,780 Acquisition related expenses, net of tax (2) 1,174 681 1,498 13,986 Pro forma income from continuing operations 157,668 142,648 416,725 477,989 Less: Net (loss) income attributable to continuing noncontrolling interest, as reported (46 ) 378 2,321 1,040 Less: Pro forma net income attributable to continuing noncontrolling interest — — — 2,799 Pro forma net income from continuing operations attributable to LKQ stockholders (3) $ 157,714 $ 142,270 $ 414,404 $ 474,150 |
Financial Statement Informat_11
Financial Statement Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following (in thousands): September 30, December 31, 2019 2018 Aftermarket and refurbished products $ 2,117,275 $ 2,309,458 Salvage and remanufactured products 438,845 503,199 Manufactured products 26,068 23,418 Total inventories $ 2,582,188 $ 2,836,075 |
Schedule of Product Warranty Liability [Table Text Block] | The changes in the warranty reserve are as follows (in thousands): Balance as of December 31, 2018 $ 23,262 Warranty expense 43,883 Warranty claims (39,969 ) Balance as of September 30, 2019 $ 27,176 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Earnings Per Share, Basic and Diluted (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following chart sets forth the computation of earnings per share (in thousands, except per share amounts): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Income from continuing operations $ 151,812 $ 134,480 $ 402,582 $ 445,109 Denominator for basic earnings per share—Weighted-average shares outstanding 307,230 318,082 311,360 313,417 Effect of dilutive securities: RSUs 293 333 341 452 PSUs — — — — Stock options 437 987 503 1,082 Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding 307,960 319,402 312,204 314,951 Basic earnings per share from continuing operations $ 0.49 $ 0.42 $ 1.29 $ 1.42 Diluted earnings per share from continuing operations (1) $ 0.49 $ 0.42 $ 1.29 $ 1.41 |
Earnings Per Share Schedule o_2
Earnings Per Share Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table sets forth the number of employee stock-based compensation awards outstanding but not included in the computation of diluted earnings per share because their effect would have been antidilutive for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Antidilutive securities: RSUs 942 375 700 317 Stock options 31 — 32 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Tables) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Cash Flow Hedges Reclassified to Interest Expense [Line Items] | ||||
Cash Flow Hedges Reclassified to Interest Expense [Table Text Block] | The amounts of unrealized gains and losses on our Cash Flow Hedges reclassified to our Unaudited Condensed Consolidated Statements of Income are as follows (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Unrealized gains on interest rate swaps (1) (2) $ 1,863 $ 2,139 $ 6,805 $ 4,748 Unrealized gains on foreign currency forwards (2) (3) 3,667 2,131 10,829 6,287 Unrealized gains on cross currency swaps (4) 24,726 3,014 29,797 15,082 Total $ 30,256 $ 7,284 $ 47,431 $ 26,117 | |||
Accumulated Other Comprehensive Income (Loss) | The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands): Three Months Ended September 30, 2019 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (181,890 ) $ 5,987 $ (7,856 ) $ (4,794 ) $ (188,553 ) Pretax (loss) income (69,440 ) 28,594 (3,087 ) — (43,933 ) Income tax effect — (6,739 ) 782 — (5,957 ) Reclassification of unrealized (gain) loss — (30,256 ) (61 ) — (30,317 ) Reclassification of deferred income taxes — 7,140 13 — 7,153 Disposal of business (379 ) — — — (379 ) Other comprehensive income from unconsolidated subsidiaries — — — 1,240 1,240 Ending balance $ (251,709 ) $ 4,726 $ (10,209 ) $ (3,554 ) $ (260,746 ) Three Months Ended September 30, 2018 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (125,753 ) $ 19,684 $ (10,200 ) $ 208 $ (116,061 ) Pretax (loss) income (23,405 ) 7,681 1,217 — (14,507 ) Income tax effect 2,454 (1,796 ) 41 — 699 Reclassification of unrealized (gain) loss — (7,284 ) 21 — (7,263 ) Reclassification of deferred income taxes — 1,703 (5 ) — 1,698 Other comprehensive income from unconsolidated subsidiaries — — — 643 643 Ending balance $ (146,704 ) $ 19,988 $ (8,926 ) $ 851 $ (134,791 ) Nine Months Ended September 30, 2019 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (177,597 ) $ 14,374 $ (8,075 ) $ (3,652 ) $ (174,950 ) Pretax (loss) income (73,733 ) 34,769 (3,087 ) — (42,051 ) Income tax effect — (8,163 ) 782 — (7,381 ) Reclassification of unrealized (gain) loss — (47,431 ) 229 — (47,202 ) Reclassification of deferred income taxes — 11,177 (58 ) — 11,119 Disposal of business (379 ) — — — (379 ) Other comprehensive income from unconsolidated subsidiaries — — — 98 98 Ending balance $ (251,709 ) $ 4,726 $ (10,209 ) $ (3,554 ) $ (260,746 ) Nine Months Ended September 30, 2018 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated Beginning balance $ (71,933 ) $ 11,538 $ (8,772 ) $ (1,309 ) $ (70,476 ) Pretax (loss) income (82,137 ) 33,901 (102 ) — (48,338 ) Income tax effect 4,507 (7,926 ) (125 ) — (3,544 ) Reclassification of unrealized (gain) loss — (26,117 ) 97 — (26,020 ) Reclassification of deferred income taxes — 6,106 (24 ) — 6,082 Other comprehensive income from unconsolidated subsidiaries — — — 2,160 2,160 Adoption of ASU 2018-02 2,859 2,486 — — 5,345 Ending balance $ (146,704 ) $ 19,988 $ (8,926 ) $ 851 $ (134,791 ) | |||
Other Comprehensive Income (Loss), Tax | $ 5,957 | $ (699) | $ 7,381 | $ 3,544 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table sets forth our revenue by category, with our parts and services revenue further disaggregated by reportable segment (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 North America $ 1,145,402 $ 1,109,067 $ 3,466,582 $ 3,447,074 Europe 1,446,392 1,464,049 4,398,185 3,781,091 Specialty 394,204 388,865 1,157,023 1,151,172 Parts and services 2,985,998 2,961,981 9,021,790 8,379,337 Other 161,775 160,397 474,459 494,556 Total revenue $ 3,147,773 $ 3,122,378 $ 9,496,249 $ 8,873,893 |
Revenue Recognition Product War
Revenue Recognition Product Warranty Liability (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The changes in deferred service-type warranty revenue are as follows (in thousands): Balance as of January 1, 2019 $ 24,006 Additional warranty revenue deferred 32,118 Warranty revenue recognized (29,469 ) Balance as of September 30, 2019 $ 26,655 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs we utilized to determine such fair value as of September 30, 2019 and December 31, 2018 (in thousands): Balance as of September 30, 2019 Fair Value Measurements as of September 30, 2019 Level 1 Level 2 Level 3 Assets: Cash surrender value of life insurance $ 56,278 $ — $ 56,278 $ — Interest rate swaps 3,634 — 3,634 — Cross currency swap agreements 10,444 — 10,444 — Total Assets $ 70,356 $ — $ 70,356 $ — Liabilities: Contingent consideration liabilities $ 9,873 $ — $ — $ 9,873 Deferred compensation liabilities 59,846 — 59,846 — Cross currency swap agreements 14,597 — 14,597 — Total Liabilities $ 84,316 $ — $ 74,443 $ 9,873 Balance as of December 31, 2018 Fair Value Measurements as of December 31, 2018 Level 1 Level 2 Level 3 Assets: Cash surrender value of life insurance $ 47,649 $ — $ 47,649 $ — Interest rate swaps 14,967 — 14,967 — Cross currency swap agreements 7,880 — 7,880 — Total Assets $ 70,496 $ — $ 70,496 $ — Liabilities: Contingent consideration liabilities $ 5,209 $ — $ — $ 5,209 Deferred compensation liabilities 48,984 — 48,984 — Cross currency swap agreements 40,997 — 40,997 — Total Liabilities $ 95,190 $ — $ 89,981 $ 5,209 |
Schedule of Derivative Instruments [Table Text Block] | The following tables summarize the notional amounts and fair values of our designated cash flow hedges as of September 30, 2019 and December 31, 2018 (in thousands): Notional Amount Fair Value at September 30, 2019 (USD) September 30, 2019 Other Current Assets Other Noncurrent Assets Other Accrued Expenses Other Noncurrent Liabilities Interest rate swap agreements USD denominated $ 480,000 $ — $ 3,634 $ — $ — Cross currency swap agreements USD/euro $ 562,418 4,678 5,766 53 14,544 Total cash flow hedges $ 4,678 $ 9,400 $ 53 $ 14,544 Notional Amount Fair Value at December 31, 2018 (USD) December 31, 2018 Other Current Assets Other Noncurrent Assets Other Accrued Expenses Other Noncurrent Liabilities Interest rate swap agreements USD denominated $ 480,000 $ — $ 14,967 $ — $ — Cross currency swap agreements USD/euro $ 574,315 211 7,669 127 40,870 Total cash flow hedges $ 211 $ 22,636 $ 127 $ 40,870 |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Obligations | Long-term obligations consist of the following (in thousands): September 30, December 31, 2019 2018 Senior secured credit agreement: Term loans payable $ 343,438 $ 350,000 Revolving credit facilities 1,145,781 1,387,177 U.S. Notes (2023) 600,000 600,000 Euro Notes (2024) 544,950 573,350 Euro Notes (2026/28) 1,089,900 1,146,700 Receivables securitization facility — 110,000 Notes payable through October 2030 at weighted average interest rates of 2.9% and 2.0%, respectively 34,325 23,056 Finance lease obligations 39,113 39,966 Other debt at weighted average interest rates of 1.9% and 1.8%, respectively 99,215 117,448 Total debt 3,896,722 4,347,697 Less: long-term debt issuance costs (31,184 ) (36,906 ) Less: current debt issuance costs (283 ) (291 ) Total debt, net of debt issuance costs 3,865,255 4,310,500 Less: current maturities, net of debt issuance costs (128,143 ) (121,826 ) Long term debt, net of debt issuance costs $ 3,737,112 $ 4,188,674 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs we utilized to determine such fair value as of September 30, 2019 and December 31, 2018 (in thousands): Balance as of September 30, 2019 Fair Value Measurements as of September 30, 2019 Level 1 Level 2 Level 3 Assets: Cash surrender value of life insurance $ 56,278 $ — $ 56,278 $ — Interest rate swaps 3,634 — 3,634 — Cross currency swap agreements 10,444 — 10,444 — Total Assets $ 70,356 $ — $ 70,356 $ — Liabilities: Contingent consideration liabilities $ 9,873 $ — $ — $ 9,873 Deferred compensation liabilities 59,846 — 59,846 — Cross currency swap agreements 14,597 — 14,597 — Total Liabilities $ 84,316 $ — $ 74,443 $ 9,873 Balance as of December 31, 2018 Fair Value Measurements as of December 31, 2018 Level 1 Level 2 Level 3 Assets: Cash surrender value of life insurance $ 47,649 $ — $ 47,649 $ — Interest rate swaps 14,967 — 14,967 — Cross currency swap agreements 7,880 — 7,880 — Total Assets $ 70,496 $ — $ 70,496 $ — Liabilities: Contingent consideration liabilities $ 5,209 $ — $ — $ 5,209 Deferred compensation liabilities 48,984 — 48,984 — Cross currency swap agreements 40,997 — 40,997 — Total Liabilities $ 95,190 $ — $ 89,981 $ 5,209 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes activity related to our RSUs under the Equity Incentive Plan for the nine months ended September 30, 2019 : Number Outstanding Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2019 1,475,682 $ 34.94 Granted 1,011,623 $ 27.82 Vested (753,276 ) $ 32.31 Forfeited / Canceled (70,851 ) $ 33.56 Unvested as of September 30, 2019 1,663,178 $ 31.86 Expected to vest after September 30, 2019 1,506,308 $ 31.90 2.7 $ 47,373 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes activity related to our PSUs under the Equity Incentive Plan for the nine months ended September 30, 2019 : Number Outstanding Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2019 — $ — Granted (2) 136,170 $ 27.69 Unvested as of September 30, 2019 136,170 $ 27.69 Expected to vest after September 30, 2019 136,170 $ 27.69 2.5 $ 4,283 |
Schedule of Share-based Compensation, Stock Options, Activity | The following table summarizes activity related to our stock options under the Equity Incentive Plan for the nine months ended September 30, 2019 : Number Outstanding Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Balance as of January 1, 2019 1,051,494 $ 10.15 Exercised (605,591 ) $ 9.03 $ 12,085 Canceled (8,055 ) $ 18.45 Balance as of September 30, 2019 437,848 $ 11.55 0.3 $ 8,739 Exercisable as of September 30, 2019 437,848 $ 11.55 0.3 $ 8,739 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Schedule of Leases [Abstract] | |
Schedule of Lease Term, Discount Rate, and Supplemental Cash Flow Information [Table Text Block] | Other information related to leases was as follows: Lease Term and Discount Rate September 30, 2019 Weighted-average remaining lease term (years) Operating leases 9.6 Finance leases 8.6 Weighted-average discount rate Operating leases 5.4 % Finance leases 4.5 % Nine Months Ended Supplemental cash flows information (in thousands) September 30, 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 222,798 Financing cash outflows from finance leases 8,521 Leased assets obtained in exchange for new finance lease liabilities 9,639 Leased assets obtained in exchange for new operating lease liabilities 126,336 |
Schedule of Leases [Table Text Block] | The amounts recorded on the Unaudited Condensed Consolidated Balance Sheet as of September 30, 2019 related to our lease agreements are as follows (in thousands): Leases Classification September 30, 2019 Assets Operating lease assets, net Operating lease assets, net $ 1,303,260 Finance lease assets, net Property, plant and equipment, net 39,504 Total leased assets $ 1,342,764 Liabilities Current Operating Current portion of operating lease liabilities $ 225,572 Finance Current portion of long-term obligations 10,361 Noncurrent Operating Long-term operating lease liabilities 1,129,423 Finance Long-term obligations, excluding current portion 28,752 Total lease liabilities $ 1,394,108 |
Schedule of Lease Cost [Table Text Block] | The components of lease expense are as follows (in thousands): Three Months Ended Nine Months Ended Lease Cost Classification September 30, 2019 September 30, 2019 Operating lease cost Cost of goods sold $ 7,265 $ 16,977 Operating lease cost Selling, general and administrative expenses 75,371 225,794 Short-term lease cost Selling, general and administrative expenses 3,006 7,472 Variable lease cost Selling, general and administrative expenses 20,521 71,711 Finance lease cost Amortization of leased assets Depreciation and amortization 2,675 7,897 Interest on lease liabilities Interest expense, net of interest income 413 1,266 Sublease income Other income, net (782 ) (1,208 ) Net lease cost $ 108,469 $ 329,909 |
Schedule of Maturity of Operating Lease Liabilities [Table Text Block] | The future minimum lease commitments under our noncancelable operating leases at December 31, 2018 were as follows (in thousands): Years ending December 31: 2019 $ 294,269 2020 256,172 2021 210,632 2022 158,763 2023 131,518 Thereafter 777,165 Future Minimum Lease Payments $ 1,828,519 |
Schedule of Maturing of Finance Lease Liabilities [Table Text Block] | The future minimum lease commitments under our leases at September 30, 2019 are as follows (in thousands): Operating leases Finance leases (1) Total Three months ending December 31, 2019 $ 76,438 $ 2,904 $ 79,342 Years ending December 31: 2020 283,138 10,528 293,666 2021 242,333 9,105 251,438 2022 192,731 6,731 199,462 2023 160,862 2,940 163,802 2024 132,269 2,615 134,884 Thereafter 758,111 15,657 773,768 Future minimum lease payments 1,845,882 50,480 1,896,362 Less: Interest 490,887 11,367 502,254 Present value of lease liabilities $ 1,354,995 $ 39,113 $ 1,394,108 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Employee Benefit Plans [Abstract] | |
Schedule of Net Benefit Costs [Table Text Block] | Net periodic benefit cost for our defined benefit plans included the following components for the three and nine months ended September 30, 2019 and 2018 (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Service cost $ 551 $ 628 $ 2,212 $ 1,612 Interest cost 959 996 2,954 2,442 Expected return on plan assets (455 ) (720 ) (1,795 ) (2,220 ) Amortization of actuarial (gain) loss (61 ) 21 229 97 Net periodic benefit cost $ 994 $ 925 $ 3,600 $ 1,931 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Segment Reporting [Abstract] | |
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 Three Months Ended September 30, 2019 Revenue: Third Party $ 1,302,086 $ 1,451,483 $ 394,204 $ — $ 3,147,773 Intersegment 61 — 1,110 (1,171 ) — Total segment revenue $ 1,302,147 $ 1,451,483 $ 395,314 $ (1,171 ) $ 3,147,773 Segment EBITDA $ 166,310 $ 124,712 $ 45,464 $ — $ 336,486 Depreciation and amortization (1) 23,593 47,302 6,983 — 77,878 Three Months Ended September 30, 2018 Revenue: Third Party $ 1,262,657 $ 1,470,856 $ 388,865 $ — $ 3,122,378 Intersegment 142 — 1,196 (1,338 ) — Total segment revenue $ 1,262,799 $ 1,470,856 $ 390,061 $ (1,338 ) $ 3,122,378 Segment EBITDA $ 154,049 $ 129,358 $ 42,937 $ — $ 326,344 Depreciation and amortization (1) 22,151 52,139 7,183 — 81,473 North America Europe Specialty Eliminations Consolidated Nine Months Ended September 30, 2019 Revenue: Third Party $ 3,925,962 $ 4,413,264 $ 1,157,023 $ — $ 9,496,249 Intersegment 260 — 3,664 (3,924 ) — Total segment revenue $ 3,926,222 $ 4,413,264 $ 1,160,687 $ (3,924 ) $ 9,496,249 Segment EBITDA $ 532,994 $ 346,291 $ 135,790 $ — $ 1,015,075 Depreciation and amortization (1) 68,257 141,087 20,895 — 230,239 Nine Months Ended September 30, 2018 Revenue: Third Party $ 3,927,282 $ 3,795,439 $ 1,151,172 $ — $ 8,873,893 Intersegment 526 — 3,554 (4,080 ) — Total segment revenue $ 3,927,808 $ 3,795,439 $ 1,154,726 $ (4,080 ) $ 8,873,893 Segment EBITDA $ 506,772 $ 315,785 $ 140,974 $ — $ 963,531 Depreciation and amortization (1) 64,985 124,697 21,295 — 210,977 |
Reconciliation Of Segment EBITDA To Net Income Table | The table below provides a reconciliation of Net Income to Segment EBITDA (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Net income $ 152,593 $ 134,480 $ 403,761 $ 445,109 Less: net (loss) income attributable to continuing noncontrolling interest (46 ) 378 2,321 1,040 Less: net income attributable to discontinued noncontrolling interest 376 — 568 — Net income attributable to LKQ stockholders 152,263 134,102 400,872 444,069 Subtract: Net income from discontinued operations 781 — 1,179 — Net income attributable to discontinued noncontrolling interest (376 ) — (568 ) — Net income from continuing operations attributable to LKQ stockholders 151,858 134,102 400,261 444,069 Add: Depreciation and amortization 71,513 76,701 213,349 196,322 Depreciation and amortization - cost of goods sold 5,223 4,772 15,748 14,655 Depreciation and amortization - restructuring expenses - cost of goods sold 168 — 168 — Depreciation and amortization - restructuring expenses 974 — 974 — Interest expense, net of interest income 31,976 40,860 103,949 107,647 Provision for income taxes 57,747 46,068 165,122 156,427 EBITDA 319,459 302,503 899,571 919,120 Subtract: Equity in earnings (losses) of unconsolidated subsidiaries (1) 4,232 (20,284 ) (33,745 ) (18,326 ) Fair value gain on Mekonomen derivative instrument (1) — 2,509 — 2,509 Gains on bargain purchase — — — 328 Add: Restructuring and acquisition related expenses (2) 7,955 6,614 19,639 26,546 Restructuring expenses - cost of goods sold (3) 17,130 — 17,130 — Inventory step-up adjustment - acquisition related — — — 403 Impairment of net assets held for sale (4) (5) (3,601 ) — 44,919 2,438 Change in fair value of contingent consideration liabilities (225 ) (548 ) 71 (465 ) Segment EBITDA $ 336,486 $ 326,344 $ 1,015,075 $ 963,531 |
Schedule Of Capital Expenditures By Reportable Segment | Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Capital Expenditures North America $ 29,430 $ 27,996 $ 83,833 $ 86,864 Europe 30,916 23,904 72,333 69,582 Specialty 3,937 4,442 9,385 15,317 Total capital expenditures $ 64,283 $ 56,342 $ 165,551 $ 171,763 |
Schedule Of Assets By Reportable Segment | The following table presents assets by reportable segment (in thousands): September 30, December 31, 2019 2018 Receivables, net North America $ 405,218 $ 411,818 Europe 705,031 649,174 Specialty 112,948 93,091 Total receivables, net 1,223,197 1,154,083 Inventories North America 975,561 1,076,306 Europe 1,274,483 1,410,264 Specialty 332,144 349,505 Total inventories 2,582,188 2,836,075 Property, plant and equipment, net North America 582,157 570,508 Europe 516,106 562,600 Specialty 85,925 87,054 Total property, plant and equipment, net 1,184,188 1,220,162 Operating lease assets, net (1) North America 813,412 — Europe 404,444 — Specialty 85,404 — Total operating lease assets, net 1,303,260 — Equity method investments North America 17,275 16,404 Europe (2) 126,734 162,765 Total equity method investments 144,009 179,169 Other unallocated assets 5,974,848 6,003,913 Total assets $ 12,411,690 $ 11,393,402 |
Revenue from External Customers by Geographic Area | The following table sets forth our revenue by geographic area (in thousands): Three Months Ended Nine Months Ended September 30, September 30, 2019 2018 2019 2018 Revenue United States $ 1,579,691 $ 1,535,557 $ 4,735,134 $ 4,716,927 United Kingdom 394,621 408,474 1,217,199 1,294,155 Germany 394,115 415,748 1,196,527 564,698 Other countries 779,346 762,599 2,347,389 2,298,113 Total revenue $ 3,147,773 $ 3,122,378 $ 9,496,249 $ 8,873,893 |
Schedule Of Tangible Long-Lived Assets By Geographic Area | The following table sets forth our tangible long-lived assets by geographic area (in thousands): September 30, December 31, 2019 2018 Long-lived assets (1) United States $ 1,485,843 $ 620,125 Germany 295,570 217,476 United Kingdom 306,611 165,145 Other countries 399,424 217,416 Total long-lived assets $ 2,487,448 $ 1,220,162 |
Condensed Consolidating Finan_2
Condensed Consolidating Financial Information (Tables) | 9 Months Ended |
Sep. 30, 2019 | |
Condensed Consolidating Financial Information [Abstract] | |
Consolidated Condensed Statements of Income | LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) For the Three Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Revenue $ — $ 1,550,301 $ 1,609,525 $ (37,448 ) $ 3,122,378 Cost of goods sold — 934,913 1,027,715 (37,448 ) 1,925,180 Gross margin — 615,388 581,810 — 1,197,198 Selling, general and administrative expenses 6,725 434,965 437,460 — 879,150 Restructuring and acquisition related expenses — 1,638 4,976 — 6,614 Depreciation and amortization 34 25,238 51,429 — 76,701 Operating (loss) income (6,759 ) 153,547 87,945 — 234,733 Other expense (income): Interest expense, net of interest income 16,191 (193 ) 24,862 — 40,860 Intercompany interest (income) expense, net (15,121 ) 10,014 5,107 — — Other income, net (178 ) (3,514 ) (3,267 ) — (6,959 ) Total other expense, net 892 6,307 26,702 — 33,901 (Loss) income before (benefit) provision for income taxes (7,651 ) 147,240 61,243 — 200,832 (Benefit) provision for income taxes (12,008 ) 41,875 16,201 — 46,068 Equity in losses of unconsolidated subsidiaries — (156 ) (20,128 ) — (20,284 ) Equity in earnings of subsidiaries 129,745 4,467 — (134,212 ) — Net income 134,102 109,676 24,914 (134,212 ) 134,480 Less: net income attributable to noncontrolling interest — — 378 — 378 Net income attributable to LKQ stockholders $ 134,102 $ 109,676 $ 24,536 $ (134,212 ) $ 134,102 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) For the Nine Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Revenue $ — $ 4,768,292 $ 4,216,417 $ (110,816 ) $ 8,873,893 Cost of goods sold — 2,869,499 2,702,162 (110,816 ) 5,460,845 Gross margin — 1,898,793 1,514,255 — 3,413,048 Selling, general and administrative expenses 25,538 1,292,455 1,154,092 — 2,472,085 Restructuring and acquisition related expenses — 1,968 24,578 — 26,546 Depreciation and amortization 84 74,102 122,136 — 196,322 Operating (loss) income (25,622 ) 530,268 213,449 — 718,095 Other expense (income): Interest expense, net of interest income 52,004 (94 ) 55,737 — 107,647 Intercompany interest (income) expense, net (45,927 ) 29,559 16,368 — — Other (income) expense, net (1,076 ) (13,793 ) 5,455 — (9,414 ) Total other expense, net 5,001 15,672 77,560 — 98,233 (Loss) income before (benefit) provision for income taxes (30,623 ) 514,596 135,889 — 619,862 (Benefit) provision for income taxes (19,656 ) 141,295 34,788 — 156,427 Equity in losses of unconsolidated subsidiaries — (156 ) (18,170 ) — (18,326 ) Equity in earnings of subsidiaries 455,036 14,028 — (469,064 ) — Net income 444,069 387,173 82,931 (469,064 ) 445,109 Less: net income attributable to noncontrolling interest — — 1,040 — 1,040 Net income attributable to LKQ stockholders $ 444,069 $ 387,173 $ 81,891 $ (469,064 ) $ 444,069 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) For the Three Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated Revenue $ — $ 1,593,983 $ 1,593,245 $ (39,455 ) $ 3,147,773 Cost of goods sold — 954,366 1,032,533 (39,455 ) 1,947,444 Gross margin — 639,617 560,712 — 1,200,329 Selling, general and administrative expenses 15,015 442,554 434,555 — 892,124 Restructuring and acquisition related expenses — 426 8,503 — 8,929 Impairment of net assets held for sale — (2,339 ) (1,262 ) — (3,601 ) Depreciation and amortization 285 25,893 45,335 — 71,513 Operating (loss) income (15,300 ) 173,083 73,581 — 231,364 Other expense (income): Interest expense, net of interest income 12,895 (166 ) 19,247 — 31,976 Intercompany interest (income) expense, net (14,899 ) 7,923 6,976 — — Other income, net (929 ) (4,645 ) (365 ) — (5,939 ) Total other (income) expense, net (2,933 ) 3,112 25,858 — 26,037 (Loss) income from continuing operations before (benefit) provision for income taxes (12,367 ) 169,971 47,723 — 205,327 (Benefit) provision for income taxes (2,268 ) 42,515 17,500 — 57,747 Equity in earnings of unconsolidated subsidiaries — 393 3,839 — 4,232 Equity in earnings of subsidiaries 161,581 4,098 — (165,679 ) — Income from continuing operations 151,482 131,947 34,062 (165,679 ) 151,812 Net income from discontinued operations 781 — 781 (781 ) 781 Net income 152,263 131,947 34,843 (166,460 ) 152,593 Less: net loss attributable to continuing noncontrolling interest — — (46 ) — (46 ) Less: net income attributable to discontinued noncontrolling interest — — 376 — 376 Net income attributable to LKQ stockholders $ 152,263 $ 131,947 $ 34,513 $ (166,460 ) $ 152,263 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) For the Nine Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated Revenue $ — $ 4,774,588 $ 4,836,439 $ (114,778 ) $ 9,496,249 Cost of goods sold — 2,850,011 3,105,236 (114,778 ) 5,840,469 Gross margin — 1,924,577 1,731,203 — 3,655,780 Selling, general and administrative expenses 36,744 1,301,827 1,348,453 — 2,687,024 Restructuring and acquisition related expenses — 5,063 15,550 — 20,613 Impairment of net assets held for sale — 39,355 5,564 — 44,919 Depreciation and amortization 377 76,142 136,830 — 213,349 Operating (loss) income (37,121 ) 502,190 224,806 — 689,875 Other expense (income): Interest expense, net of interest income 39,517 (285 ) 64,717 — 103,949 Intercompany interest (income) expense, net (44,748 ) 25,583 19,165 — — Other (income) expense, net (914 ) (16,818 ) 2,209 — (15,523 ) Total other (income) expense, net (6,145 ) 8,480 86,091 — 88,426 (Loss) income from continuing operations before (benefit) provision for income taxes (30,976 ) 493,710 138,715 — 601,449 (Benefit) provision for income taxes (7,306 ) 128,936 43,492 — 165,122 Equity in earnings (losses) of unconsolidated subsidiaries — 871 (34,616 ) — (33,745 ) Equity in earnings of subsidiaries 423,363 13,210 — (436,573 ) — Income from continuing operations 399,693 378,855 60,607 (436,573 ) 402,582 Net income from discontinued operations 1,179 — 1,179 (1,179 ) 1,179 Net income 400,872 378,855 61,786 (437,752 ) 403,761 Less: net income attributable to continuing noncontrolling interest — — 2,321 — 2,321 Less: net income attributable to discontinued noncontrolling interest — — 568 — 568 Net income attributable to LKQ stockholders $ 400,872 $ 378,855 $ 58,897 $ (437,752 ) $ 400,872 |
Consolidated Condensed Statements of Comprehensive Income (Loss) | LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) For the Nine Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Net income $ 444,069 $ 387,173 $ 82,931 $ (469,064 ) $ 445,109 Less: net income attributable to continuing noncontrolling interest — — 1,040 — 1,040 Net income attributable to LKQ stockholders 444,069 387,173 81,891 (469,064 ) 444,069 Other comprehensive (loss) income: Foreign currency translation, net of tax (77,630 ) (2,800 ) (81,456 ) 84,256 (77,630 ) Net change in unrealized gains/losses on cash flow hedges, net of tax 5,964 — — — 5,964 Net change in unrealized gains/losses on pension plans, net of tax (154 ) (239 ) 85 154 (154 ) Net change in other comprehensive income from unconsolidated subsidiaries 2,160 — 2,160 (2,160 ) 2,160 Other comprehensive loss (69,660 ) (3,039 ) (79,211 ) 82,250 (69,660 ) Comprehensive income 374,409 384,134 3,720 (386,814 ) 375,449 Less: comprehensive income attributable to continuing noncontrolling interest — — 1,040 — 1,040 Comprehensive income attributable to LKQ stockholders $ 374,409 $ 384,134 $ 2,680 $ (386,814 ) $ 374,409 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) For the Three Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Net income $ 134,102 $ 109,676 $ 24,914 $ (134,212 ) $ 134,480 Less: net income attributable to continuing noncontrolling interest — — 378 — 378 Net income attributable to LKQ stockholders 134,102 109,676 24,536 (134,212 ) 134,102 Other comprehensive (loss) income: Foreign currency translation, net of tax (20,951 ) 1,686 (23,901 ) 22,215 (20,951 ) Net change in unrealized gains/losses on cash flow hedges, net of tax 304 — — — 304 Net change in unrealized gains/losses on pension plans, net of tax 1,274 1,246 28 (1,274 ) 1,274 Net change in other comprehensive income from unconsolidated subsidiaries 643 — 643 (643 ) 643 Other comprehensive (loss) income (18,730 ) 2,932 (23,230 ) 20,298 (18,730 ) Comprehensive income 115,372 112,608 1,684 (113,914 ) 115,750 Less: comprehensive income attributable to continuing noncontrolling interest — — 378 — 378 Comprehensive income attributable to LKQ stockholders $ 115,372 $ 112,608 $ 1,306 $ (113,914 ) $ 115,372 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) For the Three Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated Net income $ 152,263 $ 131,947 $ 34,843 $ (166,460 ) $ 152,593 Less: net loss attributable to continuing noncontrolling interest — — (46 ) — (46 ) Less: net income attributable to discontinued noncontrolling interest — — 376 — 376 Net income attributable to LKQ stockholders 152,263 131,947 34,513 (166,460 ) 152,263 Other comprehensive (loss) income: Foreign currency translation, net of tax (69,819 ) (1,429 ) (69,520 ) 70,949 (69,819 ) Net change in unrealized gains/losses on cash flow hedges, net of tax (1,261 ) — — — (1,261 ) Net change in unrealized gains/losses on pension plans, net of tax (2,353 ) (2,385 ) 32 2,353 (2,353 ) Net change in other comprehensive income from unconsolidated subsidiaries 1,240 — 1,240 (1,240 ) 1,240 Other comprehensive loss (72,193 ) (3,814 ) (68,248 ) 72,062 (72,193 ) Comprehensive income (loss) 80,070 128,133 (33,405 ) (94,398 ) 80,400 Less: comprehensive loss attributable to continuing noncontrolling interest — — (46 ) — (46 ) Less: comprehensive income attributable to discontinued noncontrolling interest — — 376 — 376 Comprehensive income (loss) attributable to LKQ stockholders $ 80,070 $ 128,133 $ (33,735 ) $ (94,398 ) $ 80,070 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) For the Nine Months Ended September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated Net income $ 400,872 $ 378,855 $ 61,786 $ (437,752 ) $ 403,761 Less: net income attributable to continuing noncontrolling interest — — 2,321 — 2,321 Less: net income attributable to discontinued noncontrolling interest — — 568 — 568 Net income attributable to LKQ stockholders 400,872 378,855 58,897 (437,752 ) 400,872 Other comprehensive (loss) income: Foreign currency translation, net of tax (74,112 ) 3,107 (74,900 ) 71,793 (74,112 ) Net change in unrealized gains/losses on cash flow hedges, net of tax (9,648 ) — — — (9,648 ) Net change in unrealized gains/losses on pension plans, net of tax (2,134 ) (2,399 ) 265 2,134 (2,134 ) Net change in other comprehensive income from unconsolidated subsidiaries 98 — 98 (98 ) 98 Other comprehensive (loss) income (85,796 ) 708 (74,537 ) 73,829 (85,796 ) Comprehensive income (loss) 315,076 379,563 (12,751 ) (363,923 ) 317,965 Less: comprehensive income attributable to continuing noncontrolling interest — — 2,321 — 2,321 Less: comprehensive income attributable to discontinued noncontrolling interest — — 568 — 568 Comprehensive income (loss) attributable to LKQ stockholders $ 315,076 $ 379,563 $ (15,640 ) $ (363,923 ) $ 315,076 |
Consolidated Condensed Balance Sheets | LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Balance Sheets (In thousands) December 31, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 25,633 $ 29,285 $ 276,843 $ — $ 331,761 Receivables, net 310 316,726 837,047 — 1,154,083 Intercompany receivables, net 6,978 — 12,880 (19,858 ) — Inventories — 1,343,612 1,492,463 — 2,836,075 Prepaid expenses and other current assets 18,611 99,356 81,063 — 199,030 Total current assets 51,532 1,788,979 2,700,296 (19,858 ) 4,520,949 Property, plant and equipment, net 1,547 600,054 618,561 — 1,220,162 Intangible assets: Goodwill — 1,973,364 2,408,094 — 4,381,458 Other intangibles, net 260 272,451 656,041 — 928,752 Investment in subsidiaries 5,224,006 111,826 — (5,335,832 ) — Intercompany notes receivable 1,220,582 10,515 — (1,231,097 ) — Equity method investments — 16,404 162,765 — 179,169 Other noncurrent assets 70,283 40,548 52,081 — 162,912 Total assets $ 6,568,210 $ 4,814,141 $ 6,597,838 $ (6,586,787 ) $ 11,393,402 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,454 $ 343,116 $ 596,828 $ — $ 942,398 Intercompany payables, net — 12,880 6,978 (19,858 ) — Accrued expenses: Accrued payroll-related liabilities 6,652 70,267 95,086 — 172,005 Refund liability — 50,899 53,686 — 104,585 Other accrued expenses 5,454 105,672 177,299 — 288,425 Other current liabilities 283 17,860 42,966 — 61,109 Current portion of long-term obligations 8,459 2,932 110,435 — 121,826 Total current liabilities 23,302 603,626 1,083,278 (19,858 ) 1,690,348 Long-term obligations, excluding current portion 1,628,677 13,532 2,546,465 — 4,188,674 Intercompany notes payable — 597,283 633,814 (1,231,097 ) — Deferred income taxes 8,045 135,355 168,034 — 311,434 Other noncurrent liabilities 125,888 99,147 139,159 — 364,194 Stockholders' equity: Total Company stockholders' equity 4,782,298 3,365,198 1,970,634 (5,335,832 ) 4,782,298 Noncontrolling interest — — 56,454 — 56,454 Total stockholders' equity 4,782,298 3,365,198 2,027,088 (5,335,832 ) 4,838,752 Total liabilities and stockholders' equity $ 6,568,210 $ 4,814,141 $ 6,597,838 $ (6,586,787 ) $ 11,393,402 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Balance Sheets (In thousands) September 30, 2019 Parent Guarantors Non-Guarantors Eliminations Consolidated Assets Current assets: Cash and cash equivalents $ 141,555 $ 31,533 $ 260,303 $ — $ 433,391 Receivables, net — 337,543 885,654 — 1,223,197 Intercompany receivables, net 9,473 — 27,939 (37,412 ) — Inventories — 1,228,576 1,353,612 — 2,582,188 Prepaid expenses and other current assets 6,347 95,389 143,346 — 245,082 Total current assets 157,375 1,693,041 2,670,854 (37,412 ) 4,483,858 Property, plant and equipment, net 459 612,127 571,602 — 1,184,188 Operating lease assets, net 3,754 854,956 444,550 — 1,303,260 Intangible assets: Goodwill — 2,001,356 2,308,466 — 4,309,822 Other intangibles, net 629 254,255 582,388 — 837,272 Investment in subsidiaries 5,250,321 127,820 — (5,378,141 ) — Intercompany notes receivable 1,118,688 108,071 — (1,226,759 ) — Equity method investments — 17,275 126,734 — 144,009 Other noncurrent assets 65,679 40,503 43,099 — 149,281 Total assets $ 6,596,905 $ 5,709,404 $ 6,747,693 $ (6,642,312 ) $ 12,411,690 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 2,802 $ 346,907 $ 648,165 $ — $ 997,874 Intercompany payables, net — 27,939 9,473 (37,412 ) — Accrued expenses: Accrued payroll-related liabilities 6,911 55,803 99,438 — 162,152 Refund liability — 49,526 50,801 — 100,327 Other accrued expenses 14,965 115,571 196,098 — 326,634 Other current liabilities 5,520 22,723 85,106 — 113,349 Current portion of operating lease liabilities 217 131,719 93,636 — 225,572 Current portion of long-term obligations 15,029 2,936 110,178 — 128,143 Total current liabilities 45,444 753,124 1,292,895 (37,412 ) 2,054,051 Long-term operating lease liabilities, excluding current portion 3,943 756,450 369,030 — 1,129,423 Long-term obligations, excluding current portion 1,613,249 15,533 2,108,330 — 3,737,112 Intercompany notes payable — 537,341 689,418 (1,226,759 ) — Deferred income taxes 5,032 139,482 151,685 — 296,199 Other noncurrent liabilities 111,470 82,835 127,900 — 322,205 Stockholders' equity: Total Company stockholders' equity 4,817,767 3,424,639 1,953,502 (5,378,141 ) 4,817,767 Noncontrolling interest — — 54,933 — 54,933 Total stockholders' equity 4,817,767 3,424,639 2,008,435 (5,378,141 ) 4,872,700 Total liabilities and stockholders' equity $ 6,596,905 $ 5,709,404 $ 6,747,693 $ (6,642,312 ) $ 12,411,690 |
Consolidated Condensed Statements of Cash Flows | LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Cash Flows (In thousands) For the Nine Months Ended September 30, 2019 Parent Guarantors Non-Guarantors (1) Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 404,790 $ 196,160 $ 451,224 $ (87,003 ) $ 965,171 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment (563 ) (86,713 ) (78,275 ) — (165,551 ) Investment and intercompany note activity with subsidiaries 33,838 — — (33,838 ) — Acquisitions, net of cash acquired — (10,118 ) (4,399 ) — (14,517 ) Proceeds from disposal of businesses, net — 19,682 (177 ) — 19,505 Investments in unconsolidated subsidiaries — (2,550 ) (4,344 ) — (6,894 ) Receipts of deferred purchase price on receivables under factoring arrangements — 264,998 — (264,998 ) — Other investing activities, net 966 2,318 4,084 — 7,368 Net cash provided by (used in) investing activities 34,241 187,617 (83,111 ) (298,836 ) (160,089 ) CASH FLOWS FROM FINANCING ACTIVITIES: Purchase of treasury stock (291,813 ) — — — (291,813 ) Borrowings under revolving credit facilities 216,000 — 174,275 — 390,275 Repayments under revolving credit facilities (220,896 ) — (392,862 ) — (613,758 ) Repayments under term loans (6,563 ) — — — (6,563 ) Borrowings under receivables securitization facility — — 36,600 — 36,600 Repayments under receivables securitization facility — — (146,600 ) — (146,600 ) Payment of notes issued from acquisitions (19,123 ) — — — (19,123 ) Repayments of other debt, net (747 ) (908 ) (29,932 ) — (31,587 ) Other financing activities, net 33 — (7,158 ) — (7,125 ) Investment and intercompany note activity with parent — (29,242 ) (4,596 ) 33,838 — Dividends — (352,001 ) — 352,001 — Net cash used in financing activities (323,109 ) (382,151 ) (370,273 ) 385,839 (689,694 ) Effect of exchange rate changes on cash, cash equivalents and restricted cash — 622 (10,324 ) — (9,702 ) Net increase (decrease) in cash, cash equivalents and restricted cash 115,922 2,248 (12,484 ) — 105,686 Cash, cash equivalents and restricted cash of continuing operations, beginning of period 25,633 29,285 282,332 — 337,250 Cash, cash equivalents and restricted cash of continuing and discontinued operations, end of period 141,555 31,533 269,848 — 442,936 Less: Cash and cash equivalents of discontinued operations, end of period — — 4,328 — 4,328 Cash, cash equivalents and restricted cash, end of period $ 141,555 $ 31,533 $ 265,520 $ — $ 438,608 LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Cash Flows (In thousands) For the Nine Months Ended September 30, 2018 Parent Guarantors Non-Guarantors Eliminations Consolidated CASH FLOWS FROM OPERATING ACTIVITIES: Net cash provided by operating activities $ 334,226 $ 142,626 $ 97,506 $ (53,191 ) $ 521,167 CASH FLOWS FROM INVESTING ACTIVITIES: Purchases of property, plant and equipment (315 ) (93,063 ) (78,385 ) — (171,763 ) Investment and intercompany note activity with subsidiaries 73,096 — — (73,096 ) — Return of investment in subsidiaries 152,443 — — (152,443 ) — Acquisitions, net of cash acquired — (2,888 ) (1,203,179 ) — (1,206,067 ) Investments in unconsolidated subsidiaries — (11,066 ) — — (11,066 ) Receipts of deferred purchase price on receivables under factoring arrangements — 224,753 9,410 (224,753 ) 9,410 Other investing activities, net 887 2,162 4,921 — 7,970 Net cash provided by (used in) investing activities 226,111 119,898 (1,267,233 ) (450,292 ) (1,371,516 ) CASH FLOWS FROM FINANCING ACTIVITIES: Debt issuance costs (1,354 ) — (15,584 ) — (16,938 ) Proceeds from issuance of Euro Notes (2026/28) — — 1,232,100 — 1,232,100 Borrowings under revolving credit facilities 304,000 — 721,496 — 1,025,496 Repayments under revolving credit facilities (732,897 ) — (377,138 ) — (1,110,035 ) Repayments under term loans (114,800 ) — — — (114,800 ) (Repayments) borrowings of other debt, net (385 ) 101 (38,411 ) — (38,695 ) Other financing activities, net (996 ) — 3,182 — 2,186 Investment and intercompany note activity with parent — (62,763 ) (10,333 ) 73,096 — Dividends — (203,448 ) (226,939 ) 430,387 — Net cash (used in) provided by financing activities (546,432 ) (266,110 ) 1,288,373 503,483 979,314 Effect of exchange rate changes on cash and cash equivalents — (463 ) (66,922 ) — (67,385 ) Net increase (decrease) in cash and cash equivalents 13,905 (4,049 ) 51,724 — 61,580 Cash and cash equivalents, beginning of period 34,360 35,131 210,275 — 279,766 Cash and cash equivalents, end of period $ 48,265 $ 31,082 $ 261,999 $ — $ 341,346 |
Business Combinations (Details)
Business Combinations (Details) $ in Thousands, € in Millions | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | 13 Months Ended | ||||||||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($)shares | Jun. 30, 2018EUR (€)shares | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2018EUR (€) | Apr. 09, 2018USD ($) | Apr. 09, 2018EUR (€) | |
Business Acquisition [Line Items] | |||||||||||||
Equity in earnings (losses) of unconsolidated subsidiaries | $ 4,232 | $ (20,284) | $ (33,745) | $ (18,326) | |||||||||
Revenues | 3,147,773 | 3,122,378 | 9,496,249 | 8,873,893 | |||||||||
Interest Income (Expense), Nonoperating, Net | (31,976) | (40,860) | (103,949) | (107,647) | |||||||||
Interest Income (Expense), Related Party, Net | 0 | 0 | $ 0 | 0 | |||||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 163,997 | ||||||||||||
Number of Businesses Acquired | 5 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | $ 14,517 | 1,206,067 | 1,214,995 | ||||||||||
Business Acquisition Cost Of Acquired Entity Notes Payable Issued | 11,347 | ||||||||||||
Business Combination, Contingent Consideration, Liability | 3,107 | ||||||||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | 3,736 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 394,259 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 12,821 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 277,003 | ||||||||||||
Goodwill | 4,309,822 | 4,309,822 | 4,381,458 | ||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 320,414 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 16,662 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | 83,415 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | 366,904 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | 84,800 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | 91,130 | ||||||||||||
Consolidation, Less Than Wholly Owned Subsidiary, Non Controlling Interest Acquired, Value | 104 | 10,365 | 44,250 | 44,110 | |||||||||
Business Acquisition Cost Of Acquired Entity Other Purchase Price Obligations Non Interest Bearing | 2,461 | ||||||||||||
Stock Issued During Period, Value, Acquisitions | 0 | 251,334 | 251,334 | ||||||||||
Gains on bargain purchases | 0 | 0 | 0 | 328 | 2,418 | ||||||||
Other Nonoperating Income (Expense) | 5,939 | 6,959 | 15,523 | 9,414 | |||||||||
Nonoperating Income (Expense) | (26,037) | (33,901) | (88,426) | (98,233) | |||||||||
Subsequent payments on purchase price payables | 1,711 | ||||||||||||
Net income | 152,593 | 134,480 | 403,761 | 445,109 | |||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 151,812 | 134,480 | 402,582 | 445,109 | |||||||||
Less: net (loss) income attributable to continuing noncontrolling interest | (46) | 378 | $ 2,321 | 1,040 | |||||||||
All 2018 acquisitions and adjustments to 2017 acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Goodwill | $ 972,890 | ||||||||||||
Wholesale Europe [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of Businesses Acquired | 3 | 9 | |||||||||||
All 2019 Acquisitions excluding Stahlgruber Czech Republic Wholesale Business Member | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Consideration Transferred | $ 48,000 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 17,000 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Debt | 8,000 | 8,000 | |||||||||||
Business Acquisition Cost Of Acquired Entity Notes Payable Issued | 21,000 | 21,000 | |||||||||||
Business Acquisition Cost Of Acquired Entity Other Purchase Price Obligations Non Interest Bearing | 1,000 | 1,000 | |||||||||||
Business Acquisition Cost of Acquired Entity Settlement of Pre-existing Balances | 4,000 | 4,000 | |||||||||||
Less: net (loss) income attributable to continuing noncontrolling interest | $ 0 | ||||||||||||
All 2019 and 2018 acquisitions excluding Stahlgruber and Stahlgruber Czech Republic Wholesale Business[Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Less: net (loss) income attributable to continuing noncontrolling interest | 2,799 | ||||||||||||
Self Service [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of Businesses Acquired | 1 | ||||||||||||
Stahlgruber [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | $ 144,826 | ||||||||||||
Business Combination, Consideration Transferred | $ 1,400,000 | € 1,200 | |||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 1,100,000 | € 1,000 | 1,127,446 | ||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned | $ 251,000 | $ 251,000 | € 215 | ||||||||||
Business Acquisition, Effective Date of Acquisition | May 30, 2018 | ||||||||||||
Debt Instrument, Face Amount | $ 1,200,000 | € 1,000 | |||||||||||
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares | 8,055,569 | 8,055,569 | |||||||||||
Goodwill, Purchase Accounting Adjustments | $ 7,000 | 908,000 | $ 915,000 | ||||||||||
Business Acquisition Cost Of Acquired Entity Notes Payable Issued | 0 | ||||||||||||
Business Combination, Contingent Consideration, Liability | 0 | ||||||||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | (2,818) | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 380,238 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 10,970 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 271,292 | ||||||||||||
Goodwill | 908,253 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 285,255 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 16,625 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | (78,130) | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (346,788) | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | (79,925) | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (80,824) | ||||||||||||
Consolidation, Less Than Wholly Owned Subsidiary, Non Controlling Interest Acquired, Value | (44,110) | ||||||||||||
Business Acquisition Cost Of Acquired Entity Other Purchase Price Obligations Non Interest Bearing | (6,084) | ||||||||||||
Stock Issued During Period, Value, Acquisitions | (251,334) | ||||||||||||
Gains on bargain purchases | 0 | ||||||||||||
Subsequent payments on purchase price payables | 0 | ||||||||||||
Defined Benefit Plan, Benefit Obligation, Business Combination | 79,000 | ||||||||||||
All 2018 Acquisitions and adjustments to 2017 acquisitions excluding Stahlgruber [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Acquired Receivables, Gross Contractual Amount | 19,171 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 87,549 | ||||||||||||
Business Acquisition Cost Of Acquired Entity Notes Payable Issued | (11,347) | ||||||||||||
Business Combination, Contingent Consideration, Liability | (3,107) | ||||||||||||
Business Combination, Acquired Receivables, Estimated Uncollectible | (918) | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory | 14,021 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Assets, Prepaid Expense and Other Assets | 1,851 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment | 5,711 | ||||||||||||
Goodwill | 64,637 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill | 35,159 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Other Noncurrent Assets | 37 | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | (5,285) | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Current Liabilities | (20,116) | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt | (4,875) | ||||||||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Other | (10,306) | ||||||||||||
Consolidation, Less Than Wholly Owned Subsidiary, Non Controlling Interest Acquired, Value | 0 | ||||||||||||
Business Acquisition Cost Of Acquired Entity Other Purchase Price Obligations Non Interest Bearing | 3,623 | ||||||||||||
Stock Issued During Period, Value, Acquisitions | 0 | ||||||||||||
Gains on bargain purchases | (2,418) | ||||||||||||
Subsequent payments on purchase price payables | $ 1,711 | ||||||||||||
Wholesale - NA [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Number of Businesses Acquired | 1 | 4 | |||||||||||
All 2018 Acquisitions excluding Stahlgruber [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Consideration Transferred | $ 99,000 | ||||||||||||
Payments to Acquire Businesses, Net of Cash Acquired | 85,000 | ||||||||||||
Business Acquisition Cost Of Acquired Entity Notes Payable Issued | 11,000 | ||||||||||||
Goodwill, Acquired During Period | 68,000 | ||||||||||||
Warn Industries [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Provisional Information, Initial Accounting Incomplete, Adjustment, Intangibles | 5,000 | ||||||||||||
2017 Acquisitions Excluding Warn [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Acquisition Cost Of Acquired Entity Other Purchase Price Obligations Non Interest Bearing, Post Purchase Adjustment | (4,000) | ||||||||||||
All Completed Acquisitions [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Acquisition Related Costs, Net of Tax | 1,174 | 681 | $ 1,498 | 13,986 | |||||||||
Payment To Former Owners [Member] | All 2019 Acquisitions excluding Stahlgruber Czech Republic Wholesale Business Member | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Contingent Consideration, Liability | 5,000 | 5,000 | |||||||||||
Payment To Former Owners [Member] | All 2018 Acquisitions excluding Stahlgruber [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Contingent Consideration, Liability | 3,000 | ||||||||||||
Maximum | Payment To Former Owners [Member] | All 2019 Acquisitions excluding Stahlgruber Czech Republic Wholesale Business Member | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Contingent Consideration, Liability | 7,000 | 7,000 | |||||||||||
Maximum | Payment To Former Owners [Member] | All 2018 Acquisitions excluding Stahlgruber [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Business Combination, Contingent Consideration, Liability | $ 5,000 | ||||||||||||
Pro Forma [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenues | 3,147,773 | 3,156,086 | 9,512,730 | 9,822,843 | |||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 157,668 | 142,648 | 416,725 | 477,989 | |||||||||
Income (Loss) from Continuing Operations, Net of Tax, Excluding Portion Attributable to Noncontrolling Interest | 157,714 | 142,270 | 414,404 | 474,150 | |||||||||
Pro Forma [Member] | All 2019 Acquisitions excluding Stahlgruber Czech Republic Wholesale Business Member | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenues | 0 | 16,481 | |||||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 314 | 2,161 | |||||||||||
Less: net (loss) income attributable to continuing noncontrolling interest | 0 | ||||||||||||
Pro Forma [Member] | All 2019 and 2018 acquisitions excluding Stahlgruber and Stahlgruber Czech Republic Wholesale Business[Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenues | 33,708 | 133,545 | |||||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | 1,863 | 4,780 | |||||||||||
Less: net (loss) income attributable to continuing noncontrolling interest | 0 | ||||||||||||
Pro Forma [Member] | Stahlgruber [Member] | |||||||||||||
Business Acquisition [Line Items] | |||||||||||||
Revenues | 0 | 0 | 0 | 815,405 | |||||||||
Income (Loss) from Continuing Operations, Net of Tax, Including Portion Attributable to Noncontrolling Interest | $ 4,368 | $ 5,624 | $ 10,484 | $ 14,114 |
Discontinued Operations (Detail
Discontinued Operations (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | May 29, 2019 | Sep. 30, 2018 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Discontinued Operations, Cash and Cash Equivalents | $ (4,328) | $ 0 | |
Stahlgruber Czech Republic Wholesale Business [Member] | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Disposal Group, Discontinued Operations, Cash and Cash Equivalents | $ 5,000 | ||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Debt | $ 6,000 |
Financial Statement Informat_12
Financial Statement Information (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Inventory [Line Items] | ||
Inventories | $ 2,582,188 | $ 2,836,075 |
Accounts Receivable, Allowance for Credit Loss, Current | 50,000 | 57,000 |
AftermarketAndRefurbishedProducts [Member] | ||
Inventory [Line Items] | ||
Inventories | 2,117,275 | 2,309,458 |
SalvageAndRemanufacturedProducts [Member] | ||
Inventory [Line Items] | ||
Inventories | 438,845 | 503,199 |
ManufacturedProducts [Member] | ||
Inventory [Line Items] | ||
Inventories | 26,068 | 23,418 |
Inventory, Raw Materials and Supplies, Gross | 17,000 | 17,000 |
Inventory, Work in Process, Gross | 3,000 | 2,000 |
Inventory, Finished Goods, Gross | $ 6,000 | $ 4,000 |
Financial Statement Informat_13
Financial Statement Information Net Assets Held for Sale (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | |
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Goodwill | $ 4,309,822 | $ 4,309,822 | $ 4,309,822 | $ 4,381,458 | |||
Impairment of net assets held for sale | (3,601) | $ 0 | $ 49,000 | $ 44,919 | $ 0 | ||
Number of Businesses Divested | 2 | ||||||
Disposal Group, Including Discontinued Operation, Assets | 13,000 | $ 13,000 | 13,000 | ||||
Disposal Group, Including Discontinued Operation, Liabilities | 4,000 | 4,000 | 4,000 | ||||
Disposal Group, Including Discontinued Operation, Revenue | 55,000 | ||||||
Europe [Member] | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Goodwill | $ (3,000) | $ (3,000) | (3,000) | ||||
Disposal Group, Held-for-sale, Not Discontinued Operations [Member] | |||||||
Impaired Long-Lived Assets Held and Used [Line Items] | |||||||
Disposal Group, Including Discontinued Operation, Revenue | $ 84,000 |
Financial Statement Informat_14
Financial Statement Information Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Intangible Assets | ||
Goodwill | $ 4,309,822 | $ 4,381,458 |
Other intangibles, net | $ 837,272 | 928,752 |
Stahlgruber [Member] | ||
Intangible Assets | ||
Goodwill | $ 908,253 |
Financial Statement Informat_15
Financial Statement Information Investments in Unconsolidated Subsidiaries (Details) $ in Thousands | Dec. 01, 2016USD ($) | Sep. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Sep. 30, 2018SEK (kr) | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019SEK (kr) | Sep. 30, 2019USD ($) | Mar. 31, 2019SEK (kr) | Sep. 30, 2018USD ($) |
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Proceeds from (Payments to) Noncontrolling Interests | $ 19,000 | ||||||||||||
Impairment of Long-Lived Assets to be Disposed of | 3,601 | $ 0 | $ (49,000) | $ (44,919) | $ 0 | ||||||||
Equity method investments | $ 179,169 | $ 144,009 | |||||||||||
Payments to Acquire Equity Method Investments | 6,894 | 11,066 | |||||||||||
Equity in (losses) earnings of unconsolidated subsidiaries | (4,232) | 20,284 | 33,745 | 18,326 | |||||||||
Impairment of Mekonomen equity method investment | 39,551 | 22,715 | |||||||||||
Share Price of the Equity Method Investment | kr | kr 126 | kr 83 | kr 65 | ||||||||||
Derivative Asset, Noncurrent | 22,636 | 9,400 | $ 29,000 | ||||||||||
us-gaap_FairValueMeasuredOnRecurringBasisGainLossIncludedInEarnings | 0 | 2,509 | 0 | 2,509 | |||||||||
Notes issued in connection with purchase of noncontrolling interest | 14,196 | 0 | |||||||||||
Noncontrolling Interest, Period Increase (Decrease) | 10,000 | ||||||||||||
Adjustments to Additional Paid in Capital, Other | 9,000 | ||||||||||||
Mekonomen [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity method investments | 115,000 | ||||||||||||
Equity Method Investment, Additional Information | Dec. 1, 2016 | ||||||||||||
Equity Method Investment, Ownership Percentage | 26.50% | ||||||||||||
Payments to Acquire Equity Method Investments | $ 181,000 | $ 48,000 | |||||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 5,000 | ||||||||||||
Proceeds from Equity Method Investment, Distribution | kr 67,000,000 | 8,000 | |||||||||||
Impairment of Mekonomen equity method investment | $ 40,000 | 23,000 | |||||||||||
Equity Method Investments, Fair Value Disclosure | 126,000 | ||||||||||||
Mekonomen [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity Method Investment, Ownership Percentage | 26.60% | ||||||||||||
Europe [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity method investments | $ 162,765 | 126,734 | |||||||||||
Equity in (losses) earnings of unconsolidated subsidiaries | (4,000) | $ 20,000 | $ 35,000 | $ 18,000 | |||||||||
Notes issued in connection with purchase of noncontrolling interest | $ 14,000 | ||||||||||||
North America [Member] | |||||||||||||
Schedule of Equity Method Investments [Line Items] | |||||||||||||
Equity method investments | $ 16,404 | $ 17,275 |
Financial Statement Informat_16
Financial Statement Information Warranty Reserve (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Warranty Reserve [Abstract] | ||
Standard Product Warranty Accrual | $ 27,176 | $ 23,262 |
Standard Product Warranty Accrual, Increase for Warranties Issued | 43,883 | |
Standard Product Warranty Accrual, Decrease for Payments | $ 39,969 |
Financial Statement Informat_17
Financial Statement Information Treasury Stock (Details) - USD ($) $ in Thousands, shares in Millions | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2019 | Nov. 05, 2019 | |
Treasury Stock [Abstract] | |||||
Stock Repurchase Program, Authorized Amount | $ 500,000 | $ 500,000 | |||
Stock Repurchased During Period, Shares | 10.9 | 2.3 | |||
Payments for Repurchase of Common Stock | $ 291,813 | $ 0 | $ 60,000 | ||
Stock Repurchase Program Remaining Authorized Repurchases, Amount | $ 148,000 | $ 648,000 | |||
Stock Repurchase Program, Aggregate Amount | $ 1,000,000 |
Financial Statement Informat_18
Financial Statement Information Adoption of New Lease Standard (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | |||
Operating lease assets, net | $ 1,303,260 | $ 0 | |
Cumulative Effect of Adoption of ASC 842 on Consolidated Financial Statements [Policy Text Block] | In February 2016, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2016-02, "Leases" ("ASU 2016-02"), which represents the FASB Accounting Standard Codification Topic 842 ("ASC 842"), to increase transparency and comparability by recognizing lease assets and lease liabilities on the Unaudited Condensed Consolidated Balance Sheets and disclosing key information about leasing arrangements. The main difference between the prior standard and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under the prior standard. We adopted the standard in the first quarter of 2019 using the modified retrospective approach and took advantage of the transition package of practical expedients permitted within the new standard, which, among other things, allows us to carryforward the historical lease classification. For leases with a term of 12 months or less, we elected the short-term lease exemption, which allowed us to not recognize right-of-use assets or lease liabilities for qualifying leases existing at transition and new leases we may enter into in the future. Additionally, we adopted the practical expedient to combine lease and non-lease components. As of January 1, 2019, we recorded both an operating lease asset and operating lease liability of $1.3 billion . The preexisting deferred rent liability balances from the historical straight-line treatment of operating leases was reclassified as a reduction of the lease asset upon adoption. The adoption of the standard did not materially affect our Unaudited Condensed Consolidated Statements of Income or Statements of Cash Flows as operating lease payments will still be an operating cash outflow and capital lease payments will still be a financing cash outflow. The new standard did not have a material impact on our liquidity. The standard will have no impact on our debt covenant compliance under our current agreements as the covenant calculations are based on the prior lease accounting rules. | ||
Accounting Standards Update 2016-02 [Member] | |||
Lessee, Lease, Description [Line Items] | |||
Operating lease assets, net | $ 1,300,000 |
Earnings Per Share Earnings P_2
Earnings Per Share Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | ||||
Net income | $ 152,593 | $ 134,480 | $ 403,761 | $ 445,109 |
Income from continuing operations | $ 151,812 | $ 134,480 | $ 402,582 | $ 445,109 |
Denominator for basic earnings per share—Weighted-average shares outstanding | 307,230 | 318,082 | 311,360 | 313,417 |
Effect of dilutive securities: | ||||
Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding | 307,960 | 319,402 | 312,204 | 314,951 |
Income from continuing operations | $ 0.49 | $ 0.42 | $ 1.29 | $ 1.42 |
Income from continuing operations | $ 0.49 | $ 0.42 | $ 1.29 | $ 1.41 |
RSUs | ||||
Effect of dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 293 | 333 | 341 | 452 |
Performance Based RSU [Member] | ||||
Effect of dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 0 | 0 |
Stock options | ||||
Effect of dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 437 | 987 | 503 | 1,082 |
Schedule of Antidilutive Securi
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities | 942 | 375 | 700 | 317 |
Share-based Payment Arrangement, Option [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities | 31 | 0 | 32 | 0 |
Restructuring and Acquisition_2
Restructuring and Acquisition Related Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 7 | $ 5 | $ 13 | $ 10 |
Business Combination, Acquisition Related Costs | 2 | 1 | 2 | 17 |
Andrew Page [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 4 | 4 | 7 | 8 |
Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | 10 | 10 | ||
Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | 5 | 5 | ||
2019 Global Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 18 | 23 | ||
2019 Global Restructuring Program [Member] | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | 20 | 20 | ||
2019 Global Restructuring Program [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | 15 | 15 | ||
1 LKQ Europe Program [Member] | Maximum | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | 55 | 55 | ||
1 LKQ Europe Program [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and Related Cost, Expected Cost Remaining | 45 | 45 | ||
Cost of Sales [Member] | Andrew Page [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 4 | |||
Cost of Sales [Member] | 2019 Global Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | 13 | 13 | ||
Restructuring Charges And Business Combination Acquisition Related Costs [Member] | 2019 Global Restructuring Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 4 | $ 10 | ||
Specialty [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring Costs | $ 1 | $ 2 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 35.00% | ||||||
Accumulated other comprehensive loss | $ 260,746 | $ 134,791 | $ 260,746 | $ 134,791 | $ 174,950 | $ 70,476 | $ 188,553 | $ 116,061 |
Pretax income (loss) | (43,933) | (14,507) | (42,051) | (48,338) | ||||
Income tax effect | (5,957) | 699 | (7,381) | (3,544) | ||||
Reclassification of unrealized loss (gain) | (30,317) | (7,263) | (47,202) | (26,020) | ||||
Reclassification of deferred income taxes | 7,153 | 1,698 | 11,119 | 6,082 | ||||
OtherComprehensiveIncomeLossBeforeReclassificationsDisposalOfBusiness | (379) | (379) | ||||||
Other comprehensive income from unconsolidated subsidiaries | 1,240 | 643 | 98 | 2,160 | ||||
Adoption of ASU 2018-02 (see Note 8) | 5,345 | |||||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | 251,709 | 146,704 | 251,709 | 146,704 | 177,597 | 71,933 | 181,890 | 125,753 |
Pretax income (loss) | (69,440) | (23,405) | (73,733) | (82,137) | ||||
Income tax effect | 0 | 2,454 | 0 | 4,507 | ||||
Reclassification of unrealized loss (gain) | 0 | 0 | 0 | 0 | ||||
Reclassification of deferred income taxes | 0 | 0 | 0 | 0 | ||||
OtherComprehensiveIncomeLossBeforeReclassificationsDisposalOfBusiness | (379) | (379) | ||||||
Other comprehensive income from unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||||
Adoption of ASU 2018-02 (see Note 8) | 2,859 | |||||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | (4,726) | (19,988) | (4,726) | (19,988) | (14,374) | (11,538) | (5,987) | (19,684) |
Pretax income (loss) | 28,594 | 7,681 | 34,769 | 33,901 | ||||
Income tax effect | (6,739) | (1,796) | (8,163) | (7,926) | ||||
Reclassification of unrealized loss (gain) | (30,256) | (7,284) | (47,431) | (26,117) | ||||
Reclassification of deferred income taxes | 7,140 | 1,703 | 11,177 | 6,106 | ||||
OtherComprehensiveIncomeLossBeforeReclassificationsDisposalOfBusiness | 0 | 0 | ||||||
Other comprehensive income from unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||||
Adoption of ASU 2018-02 (see Note 8) | 2,486 | |||||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | 10,209 | 8,926 | 10,209 | 8,926 | 8,075 | 8,772 | 7,856 | 10,200 |
Pretax income (loss) | (3,087) | 1,217 | (3,087) | (102) | ||||
Income tax effect | 782 | 41 | 782 | (125) | ||||
Reclassification of unrealized loss (gain) | (61) | 21 | 229 | 97 | ||||
Reclassification of deferred income taxes | 13 | (5) | (58) | (24) | ||||
OtherComprehensiveIncomeLossBeforeReclassificationsDisposalOfBusiness | 0 | 0 | ||||||
Other comprehensive income from unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||||
Adoption of ASU 2018-02 (see Note 8) | 0 | |||||||
Accumulated Gain (Loss) from Unconsoldated Subsidiaries [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | 3,554 | (851) | 3,554 | (851) | $ 3,652 | $ 1,309 | $ 4,794 | $ (208) |
Pretax income (loss) | 0 | 0 | 0 | 0 | ||||
Income tax effect | 0 | 0 | 0 | 0 | ||||
Reclassification of unrealized loss (gain) | 0 | 0 | 0 | 0 | ||||
Reclassification of deferred income taxes | 0 | 0 | 0 | 0 | ||||
OtherComprehensiveIncomeLossBeforeReclassificationsDisposalOfBusiness | 0 | 0 | ||||||
Other comprehensive income from unconsolidated subsidiaries | 1,240 | 643 | 98 | 2,160 | ||||
Adoption of ASU 2018-02 (see Note 8) | 0 | |||||||
Cross Currency Fx Forward Contract [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification of unrealized loss (gain) | (3,667) | (2,131) | (10,829) | (6,287) | ||||
Interest Rate Swap [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification of unrealized loss (gain) | $ (1,863) | $ (2,139) | $ (6,805) | $ (4,748) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Mar. 31, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | $ 30,317 | $ 7,263 | $ 47,202 | $ 26,020 | |
Adoption of ASU 2018-02 (see Note 8) | 5,345 | ||||
Interest Rate Swap | |||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | 1,863 | 2,139 | 6,805 | 4,748 | |
Cross Currency Fx Forward Contract [Member] | |||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | 3,667 | 2,131 | 10,829 | 6,287 | |
Cross Currency Interest Rate Contract [Member] | |||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | 24,726 | 3,014 | 29,797 | 15,082 | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | $ 30,256 | $ 7,284 | $ 47,431 | 26,117 | |
Adoption of ASU 2018-02 (see Note 8) | 2,486 | ||||
Accumulated Other Comprehensive Income (Loss) | |||||
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Adoption of ASU 2018-02 (see Note 8) | $ 5,000 | $ 5,345 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Revenue Recognition [Line Items] | |||||
Revenues | $ 3,147,773 | $ 3,122,378 | $ 9,496,249 | $ 8,873,893 | |
Deferred Service-Type Warranty Revenue | 26,655 | 26,655 | $ 24,006 | ||
Deferred Service-Type Revenue, Additions | 32,118 | ||||
Deferred Service-Type Revenue Recognized | (29,469) | ||||
Revenue, Variable Consideration Reserve | 106,000 | 106,000 | 103,000 | ||
Contract with Customer, Right to Recover Product | 54,000 | 54,000 | 56,000 | ||
Contract with Customer, Refund Liability | 100,000 | 100,000 | $ 105,000 | ||
North America [Member] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 1,302,147 | 1,262,799 | 3,926,222 | 3,927,808 | |
Europe [Member] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 1,451,483 | 1,470,856 | 4,413,264 | 3,795,439 | |
Specialty [Member] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 395,314 | 390,061 | 1,160,687 | 1,154,726 | |
Parts and Services [Domain] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 2,985,998 | 2,961,981 | 9,021,790 | 8,379,337 | |
Parts and Services [Domain] | North America [Member] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 1,145,402 | 1,109,067 | 3,466,582 | 3,447,074 | |
Parts and Services [Domain] | Europe [Member] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 1,446,392 | 1,464,049 | 4,398,185 | 3,781,091 | |
Parts and Services [Domain] | Specialty [Member] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 394,204 | 388,865 | 1,157,023 | 1,151,172 | |
Other Revenue [Member] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | $ 161,775 | $ 160,397 | $ 474,459 | $ 494,556 |
Revenue Recognition Movement in
Revenue Recognition Movement in Standard Product Warranty Accrual (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Product Warranty Liability [Line Items] | ||
Contract with Customer, Right to Recover Product | $ 54,000 | $ 56,000 |
Contract with Customer, Refund Liability | 100,000 | 105,000 |
Revenue, Variable Consideration Reserve | 106,000 | 103,000 |
Deferred Service-Type Warranty Revenue | 26,655 | $ 24,006 |
Deferred Revenue, Additions | 32,118 | |
Deferred Revenue, Revenue Recognized | $ 29,469 | |
Minimum [Member] | ||
Product Warranty Liability [Line Items] | ||
Standard Product Warranty Period | 6 months | |
Maximum | ||
Product Warranty Liability [Line Items] | ||
Standard Product Warranty Period | 36 months |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) $ in Thousands, € in Millions | Sep. 30, 2019USD ($) | Sep. 30, 2019EUR (€) | Dec. 31, 2018USD ($) | Dec. 31, 2018EUR (€) | Sep. 30, 2018USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2016EUR (€) |
Effect of Netting Derivative Instruments | $ (6,000) | $ (14,000) | |||||
Interest Rate Cash Flow Hedge Gain (Loss) to be Reclassified During Next 12 Months, Net | 2,000 | ||||||
Derivative Asset, Current | 4,678 | 211 | |||||
Derivative Liability, Current | 53 | 127 | |||||
Settlement of Notional Amounts | € | € (15) | ||||||
Derivative Asset, Noncurrent | 9,400 | 22,636 | $ 29,000 | ||||
Derivative Liability, Noncurrent | 14,544 | 40,870 | |||||
Interest Rate Swap [Member] | |||||||
Derivative Asset, Current | 0 | 0 | |||||
Derivative Liability, Current | 0 | 0 | |||||
Derivative Liability, Noncurrent | 0 | 0 | |||||
Derivative, Notional Amount | 480,000 | 480,000 | |||||
Cross Currency Interest Rate Contract [Member] | |||||||
Derivative Asset, Current | 4,678 | 211 | |||||
Derivative Liability, Current | 53 | 127 | |||||
Derivative Asset, Noncurrent | 5,766 | 7,669 | |||||
Derivative Liability, Noncurrent | 14,544 | 40,870 | |||||
Derivative, Notional Amount | 562,418 | 574,315 | $ 422,000 | € 400 | |||
Interest Rate Swap [Member] | |||||||
Derivative Asset, Noncurrent | 3,634 | 14,967 | |||||
2018 Cross Currency Swaps [Member] | Cross Currency Interest Rate Contract [Member] | |||||||
Derivative, Notional Amount | $ 184,000 | € 160 | |||||
2019 [Member] | 2018 Cross Currency Swaps [Member] | Cross Currency Interest Rate Contract [Member] | |||||||
Settlement of Notional Amounts | 92,000 | 80 | |||||
2020 [Member] | 2018 Cross Currency Swaps [Member] | Cross Currency Interest Rate Contract [Member] | |||||||
Settlement of Notional Amounts | $ 92,000 | € 80 |
Long-Term Obligations - Additio
Long-Term Obligations - Additional Information (Details) $ in Thousands, € in Millions | Nov. 20, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Jan. 29, 2024USD ($) | Dec. 20, 2018USD ($) | Apr. 09, 2018EUR (€) | Dec. 01, 2017USD ($) | Apr. 14, 2016 | May 09, 2013USD ($) |
Debt Instrument | ||||||||||||
Restructuring Charges And Business Combination Acquisition Related Costs net of Restructuring Depreciation | $ 974 | $ 0 | $ 974 | $ 0 | ||||||||
Borrowings Under Credit Facility | $ 1,500,000 | $ 1,500,000 | $ 1,700,000 | |||||||||
Weighted average interest rates | 1.90% | 1.90% | 1.80% | |||||||||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 110,000 | |||||||||||
Debt and Lease Obligation | $ 3,896,722 | $ 3,896,722 | 4,347,697 | |||||||||
Borrowings under revolving credit facilities | 390,275 | 1,025,496 | ||||||||||
Repayments of Long-term Debt | 6,563 | $ 114,800 | ||||||||||
Senior Notes 2028 [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Debt Instrument, Redemption, Description | 35.00% | |||||||||||
Loans Payable [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Secured Debt | $ 343,438 | 343,438 | 350,000 | |||||||||
Borrowings under revolving credit facilities | $ 400,000 | |||||||||||
Repayments of Long-term Debt | $ 240,000 | |||||||||||
US Notes (2023) [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Long-term Debt | 600,000 | 600,000 | 600,000 | |||||||||
Senior notes interest rate | 4.75% | |||||||||||
Euro Notes (2024) | ||||||||||||
Debt Instrument | ||||||||||||
Long-term Debt | $ 544,950 | 544,950 | 573,350 | |||||||||
Senior notes interest rate | 3.875% | |||||||||||
Senior Notes 2024 [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
Euro Notes 2026/28 [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Payments of Financing Costs | 16,000 | |||||||||||
Long-term Debt | $ 1,089,900 | $ 1,089,900 | 1,100,000 | € 1,000 | ||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||
Senior Notes 2026 [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Debt Instrument, Redemption, Description | 35.00% | |||||||||||
Receivables securitization | ||||||||||||
Debt Instrument | ||||||||||||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 110,000 | |||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Increment change in applicable margin | 2500.00% | 0.25% | ||||||||||
Weighted average interest rates | 1.60% | 1.60% | 1.90% | |||||||||
Long-Term Line of Credit, Current | $ 15,000 | $ 15,000 | $ 9,000 | |||||||||
Outstanding letters of credit | 69,000 | 69,000 | ||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,900,000 | 1,900,000 | ||||||||||
Letter of Credit [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.125% | |||||||||||
Amendment No. 3, Fourth Amended and Restate Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,150,000 | |||||||||||
Line of Credit Facility, Periodic Payment | 2,000 | $ 4,000 | ||||||||||
Payments of Financing Costs | 4,000 | |||||||||||
Fourth Amended Credit Agreement | Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 2,750,000 | |||||||||||
Mitsubishi UFJ [Member] | Receivables securitization | ||||||||||||
Debt Instrument | ||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 110,000 | |||||||||||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 0 | 0 | 110,000 | |||||||||
Twenty Twenty Three [Domain] | US Notes (2023) [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Long-term Debt | $ 600,000 | |||||||||||
TwentyTwentySix [Member] | Euro Notes 2026/28 [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Long-term Debt | € | € 750 | |||||||||||
Senior notes interest rate | 3.625% | |||||||||||
TwentyTwentyEight [Member] | Euro Notes 2026/28 [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Long-term Debt | € | € 250 | |||||||||||
Senior notes interest rate | 4.125% | |||||||||||
Net Receivables [Member] | Mitsubishi UFJ [Member] | Receivables securitization | ||||||||||||
Debt Instrument | ||||||||||||
Debt Instrument, Collateral Amount | $ 120,000 | $ 120,000 | $ 132,000 | |||||||||
Maximum increment [Member] | Revolving Credit Facility [Member] | ||||||||||||
Debt Instrument | ||||||||||||
Increment change in commitment fees | 0.05% | 0.05% |
Schedule of Long-Term Obligatio
Schedule of Long-Term Obligations (Details) $ in Thousands, € in Millions | Nov. 20, 2018USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Dec. 31, 2018USD ($) | Apr. 09, 2018EUR (€) | Apr. 14, 2016EUR (€) |
Debt Instrument | ||||||
Borrowings under revolving credit facilities | $ 390,275 | $ 1,025,496 | ||||
Repayments of Long-term Debt | 6,563 | $ 114,800 | ||||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 110,000 | |||||
Finance Lease, Liability | 39,113 | 39,966 | ||||
Other Debt | 99,215 | 117,448 | ||||
Long-term obligations, total | 3,896,722 | 4,347,697 | ||||
Deferred Finance Costs, Noncurrent, Net | (31,184) | (36,906) | ||||
Deferred Finance Costs, Current, Net | (283) | (291) | ||||
Long-term obligations, total, net | 3,865,255 | 4,310,500 | ||||
Current portion of long-term obligations | (128,143) | (121,826) | ||||
Long-term obligations, excluding current portion | 3,737,112 | 4,188,674 | ||||
Loans Payable | ||||||
Debt Instrument | ||||||
Borrowings under revolving credit facilities | $ 400,000 | |||||
Repayments of Long-term Debt | $ 240,000 | |||||
Term loan | 343,438 | 350,000 | ||||
Revolving Credit Facility [Member] | ||||||
Debt Instrument | ||||||
Long-term Line of Credit | 1,145,781 | 1,387,177 | ||||
US Notes (2023) [Member] | ||||||
Debt Instrument | ||||||
Long-term Debt | 600,000 | 600,000 | ||||
Long-term Debt, Fair Value | 609,000 | 574,000 | ||||
Euro Notes (2024) | ||||||
Debt Instrument | ||||||
Long-term Debt | 544,950 | 573,350 | ||||
Long-term Debt, Fair Value | 618,000 | 586,000 | ||||
Euro Notes 2026/28 [Member] | ||||||
Debt Instrument | ||||||
Long-term Debt | 1,089,900 | 1,100,000 | € 1,000 | |||
Long-term Debt, Fair Value | 1,200,000 | 1,146,700 | ||||
Receivables securitization | ||||||
Debt Instrument | ||||||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 110,000 | |||||
Notes payable | ||||||
Debt Instrument | ||||||
Notes Payable | 34,325 | 23,056 | ||||
Mitsubishi UFJ [Member] | Receivables securitization | ||||||
Debt Instrument | ||||||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 0 | $ 110,000 | ||||
Twenty Twenty Four [Domain] | Euro Notes (2024) | ||||||
Debt Instrument | ||||||
Long-term Debt | € | € 500 | |||||
TwentyTwentySix [Member] | Euro Notes 2026/28 [Member] | ||||||
Debt Instrument | ||||||
Long-term Debt | € | 750 | |||||
TwentyTwentyEight [Member] | Euro Notes 2026/28 [Member] | ||||||
Debt Instrument | ||||||
Long-term Debt | € | € 250 |
Schedule of Long-Term Obligat_2
Schedule of Long-Term Obligations (Parenthetical) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument | ||
Debt, Weighted Average Interest Rate | 1.90% | 1.80% |
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 110,000 | |
Senior Notes 2024 [Member] | ||
Debt Instrument | ||
Debt Instrument, Redemption Price, Percentage | 100.00% | |
Euro Notes 2026/28 [Member] | ||
Debt Instrument | ||
Debt Instrument, Redemption Price, Percentage | 100.00% | |
Senior Notes 2026 [Member] | ||
Debt Instrument | ||
Debt Instrument Redemption Price Percentage of Principal Amount Eligible To Be Redeemed | 35.00% | |
Notes payable | ||
Debt Instrument | ||
Debt, Weighted Average Interest Rate | 2.90% | 2.00% |
Receivables Securitization [Member] | ||
Debt Instrument | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 110,000 | |
Mitsubishi UFJ [Member] | Receivables Securitization [Member] | ||
Debt Instrument | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 0 | $ 110,000 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands, € in Billions | Sep. 30, 2019USD ($) | Dec. 31, 2018USD ($) | Apr. 09, 2018EUR (€) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Long-term Line of Credit | $ 1,500,000 | $ 1,700,000 | |
Derivative Liability, Noncurrent | 14,544 | 40,870 | |
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 110,000 | ||
Borrowings Under Credit Facility, FV | 1,500,000 | 1,700,000 | |
Fair Value, Recurring [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 70,356 | 70,496 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 84,316 | 95,190 | |
Fair Value, Recurring [Member] | Cash Surrender Value [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 56,278 | 47,649 | |
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 3,634 | 14,967 | |
Fair Value, Recurring [Member] | Contingent Consideration Liabilities [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 9,873 | 5,209 | |
Fair Value, Recurring [Member] | Deferred Compensation Liabilities [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 59,846 | 48,984 | |
Fair Value, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 10,444 | 7,880 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 14,597 | 40,997 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Cash Surrender Value [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Contingent Consideration Liabilities [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Liabilities [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Cross Currency Interest Rate Contract [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 70,356 | 70,496 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 74,443 | 89,981 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Cash Surrender Value [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 56,278 | 47,649 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 3,634 | 14,967 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Contingent Consideration Liabilities [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Liabilities [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 59,846 | 48,984 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Cross Currency Interest Rate Contract [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 10,444 | 7,880 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 14,597 | 40,997 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 9,873 | 5,209 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Cash Surrender Value [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liabilities [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 9,873 | 5,209 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Deferred Compensation Liabilities [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Cross Currency Interest Rate Contract [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 0 | 0 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | |
Euro Notes 2026/28 [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Long-term Debt, Fair Value | 1,200,000 | 1,146,700 | |
Long-term Debt | 1,089,900 | 1,100,000 | € 1 |
Euro Notes (2024) | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Long-term Debt, Fair Value | 618,000 | 586,000 | |
Long-term Debt | 544,950 | 573,350 | |
Receivables securitization | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | 110,000 | ||
US Notes (2023) [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Long-term Debt, Fair Value | 609,000 | 574,000 | |
Long-term Debt | $ 600,000 | $ 600,000 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Stock-based compensation expense | $ 7,000 | $ 6,000 | $ 20,837 | $ 17,544 | |
Stock Options [Abstract] | |||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 44,000 | $ 44,000 | |||
Performance Based RSU [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Performance Period | 3 years | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 136,170 | 136,170 | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 27.69 | $ 27.69 | $ 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 27.69 | ||||
RSUs [Abstract] | |||||
RSUs granted, shares | 136,170 | ||||
Stock Options [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Number | 136,170 | 136,170 | |||
lkq_expected_to_vest_other_than_options_weighted_average_per_share | $ 27.69 | $ 27.69 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 2 years 6 months | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 4,283 | ||||
Restricted Stock Units (RSUs) [Member] | |||||
Share-based Compensation Arrangement by Share-based Payment Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,663,178 | 1,663,178 | 1,475,682 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 31.86 | $ 31.86 | $ 34.94 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 27.82 | ||||
RSUs [Abstract] | |||||
RSUs granted, shares | 1,011,623 | ||||
Fair value of RSUs vested during the period | $ 20,000 | ||||
Stock Options [Abstract] | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Number | 1,506,308 | 1,506,308 | |||
lkq_expected_to_vest_other_than_options_weighted_average_per_share | $ 31.90 | $ 31.90 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 2 years 8 months 12 days | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 47,373 | ||||
Stock options | |||||
Stock Options [Abstract] | |||||
Options granted during the period | 0 | ||||
Options vested during the period | 0 | ||||
Minimum [Member] | Stock options | |||||
Stock Options [Abstract] | |||||
Stock options expiration period | 6 years | ||||
Maximum | Restricted Stock Units (RSUs) [Member] | |||||
Stock Options [Abstract] | |||||
Vesting period | 5 years | ||||
Maximum | Performance Shares [Member] | |||||
RSUs [Abstract] | |||||
Reporting period of positive diluted earnings per share | 5 years | ||||
Maximum | Stock options | |||||
Stock Options [Abstract] | |||||
Vesting period | 5 years | ||||
Stock options expiration period | 10 years |
Stock-Based Compensation Schedu
Stock-Based Compensation Schedule of Unvested Restricted Stock Units Activity (Details) - RSUs - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Shares Outstanding [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,663,178 | 1,475,682 |
RSUs granted, shares | 1,011,623 | |
RSUs vested, shares | 753,276 | |
RSUs forfeited/canceled, shares | 70,851 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Number | 1,506,308 | |
lkq_expected_to_vest_other_than_options_weighted_average_per_share | $ 31.90 | |
Weighted Average Fair Value [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | 31.86 | $ 34.94 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 27.82 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 32.31 | |
RSUs forfeited/canceled, weighted average grant date fair value | $ 33.56 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 2 years 8 months 12 days | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 47,373 |
Stock-Based Compensation Sche_2
Stock-Based Compensation Schedule of Stock Option Activity (Details) - Stock options - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2019 | Dec. 31, 2018 | |
Shares Outstanding [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 437,848 | 1,051,494 |
Stock options exercised, shares | 605,591 | |
Stock options forfeited/canceled, shares | 8,055 | |
Exercisable and expected to vest stock options, shares | 437,848 | |
Weighted Average Fair Value [Abstract] | ||
Stock options outstanding, weighted average exercise price | $ 11.55 | $ 10.15 |
Stock options exercised, weighted average exercise price | 9.03 | |
Stock options forfeited/canceled, weighted average exercise price | 18.45 | |
Exercisable and expected to vest stock options, weighted average exercise price | $ 11.55 | |
Weighted Average Contractual Term [Abstract] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term | 3 months 18 days | |
Exercisable and expected to vest stock options, weighted average remaining contractual term (years) | 3 months 18 days | |
Aggregate Intrinsic Value [Abstract] | ||
Stock options exercised, aggregate intrinsic value | $ 12,085 | |
Stock options outstanding, aggregate intrinsic value | 8,739 | |
Exercisable and expected to vest stock options, aggregate intrinsic value | $ 8,739 |
Schedule of Stock-Based Compens
Schedule of Stock-Based Compensation Expense Expected to be Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 7,000 | $ 6,000 | $ 20,837 | $ 17,544 |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 44,000 | $ 44,000 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | |
Classification [Line Items] | ||||
Residual Value of Leased Asset | $ 71,000 | $ 71,000 | ||
Operating Lease, Payments | $ 222,798 | |||
Operating Lease, Weighted Average Remaining Lease Term | 9 years 7 months 6 days | 9 years 7 months 6 days | ||
Finance Lease, Weighted Average Remaining Lease Term | 8 years 7 months 6 days | 8 years 7 months 6 days | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5.40% | 5.40% | ||
Finance Lease, Liability, Payments, Remainder of Fiscal Year | $ 2,904 | $ 2,904 | ||
Lease, Liability, Payments, Remainder of Fiscal Year | 79,342 | 79,342 | ||
Lessee, Operating Lease, Liability, Payments, Remainder of Fiscal Year | 76,438 | 76,438 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Two | 283,138 | 283,138 | ||
Finance Lease, Liability, Payments, Due Year Two | 10,528 | 10,528 | ||
Lease, Liability, Payments, Due Year Two | 293,666 | 293,666 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Three | 242,333 | 242,333 | ||
Finance Lease, Liability, Payments, Due Year Three | 9,105 | 9,105 | ||
Lease, Liability, Payments, Due Year Three | 251,438 | 251,438 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Four | 192,731 | 192,731 | ||
Finance Lease, Liability, Payments, Due Year Four | 6,731 | 6,731 | ||
Lessee, Operating Lease, Liability, Payments, Due Year Five | 160,862 | 160,862 | ||
Finance Lease, Liability, Payments, Due Year Five | 2,940 | 2,940 | ||
Lease, Liability, Payments, Remainder of Year Five | 163,802 | 163,802 | ||
Lessee, Operating Lease, Liability, Payments Due Year Six | 132,269 | 132,269 | ||
Finance Lease, Liability, Payments, Due Year Six | 2,615 | 2,615 | ||
Lease, Liability, Payments, Remainder of Year Six | 134,884 | 134,884 | ||
Lessee, Operating Lease, Liability, Payments Due After Year Six | 758,111 | 758,111 | ||
Finance Lease, Liability, Payments, Due After Year Six | 15,657 | 15,657 | ||
Lease, Liability, Payments, Due After Year Six | 773,768 | 773,768 | ||
Lessee, Operating Lease, Liability, Payments, Due | 1,845,882 | 1,845,882 | ||
Finance Lease, Liability, Payment, Due | 50,480 | 50,480 | ||
Lease, Liability, Payments Due | 1,896,362 | 1,896,362 | ||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 490,887 | 490,887 | ||
Finance Lease, Liability, Undiscounted Excess Amount | 11,367 | 11,367 | ||
Lease, Liability, Undiscounted Excess Amount | 502,254 | 502,254 | ||
Operating Lease, Liability | 1,354,995 | 1,354,995 | ||
Finance Lease, Liability | $ 39,113 | $ 39,113 | $ 39,966 | |
Finance Lease, Weighted Average Discount Rate, Percent | 4.50% | 4.50% | ||
Finance Lease, Principal Payments | $ 8,521 | |||
Leased assets obtained in exchange for new finance lease liabilities | 9,639 | |||
Leased assets obtained in exchange for new operating lease liabilities | 126,336 | |||
Operating Lease, Not Yet Commenced, Expense | 30,000 | |||
Lease, Liability, Payments, Due Year Four | $ 199,462 | 199,462 | ||
Operating Leases, Future Minimum Payments Due, Next Twelve Months | 294,269 | |||
Finance Lease, Right-of-Use Asset | 39,504 | 39,504 | ||
Lease Right-of-Use-Asset | 1,342,764 | 1,342,764 | ||
Current portion of operating lease liabilities | 225,572 | 225,572 | 0 | |
Finance Lease, Liability, Current | 10,361 | 10,361 | ||
Long-term operating lease liabilities, excluding current portion | 1,129,423 | 1,129,423 | 0 | |
Finance Lease, Liability, Noncurrent | 28,752 | 28,752 | ||
Lease Liability | 1,394,108 | 1,394,108 | ||
Operating Leases, Future Minimum Payments, Due in Two Years | 256,172 | |||
Operating Leases, Future Minimum Payments, Due in Three Years | 210,632 | |||
Operating Leases, Future Minimum Payments, Due in Four Years | 158,763 | |||
Operating Leases, Future Minimum Payments, Due in Five Years | 131,518 | |||
Operating Leases, Future Minimum Payments, Due Thereafter | 777,165 | |||
Operating Leases, Future Minimum Payments Due | $ 1,828,519 | |||
Lease, Cost | 108,469 | 329,909 | ||
Depreciation and Amortization [Member] | ||||
Classification [Line Items] | ||||
Finance Lease, Right-of-Use Asset, Amortization | 2,675 | 7,897 | ||
Cost of Sales [Member] | ||||
Classification [Line Items] | ||||
Operating Lease, Cost, Cost of Goods Sold | 7,265 | 16,977 | ||
Selling, General and Administrative Expenses [Member] | ||||
Classification [Line Items] | ||||
Operating Lease, Cost, Cost of Goods Sold | 75,371 | 225,794 | ||
Short-term Lease, Cost | 3,006 | 7,472 | ||
Variable Lease, Cost | 20,521 | 71,711 | ||
Interest expense, net of interest income [Member] | ||||
Classification [Line Items] | ||||
Finance Lease, Interest Expense | 413 | 1,266 | ||
Other income, net [Member] | ||||
Classification [Line Items] | ||||
Sublease Income | $ (782) | $ (1,208) | ||
Minimum [Member] | ||||
Classification [Line Items] | ||||
Lessee, Lease, Renewal Term | 1 year | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 1 year | 1 year | ||
Maximum | ||||
Classification [Line Items] | ||||
Lessee, Lease, Renewal Term | 40 years | |||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 20 years | 20 years | ||
Accounting Standards Update 2016-02 [Member] | ||||
Classification [Line Items] | ||||
Operating Lease, Liability | $ 1,300,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 111,000 | $ 111,000 | $ 110,000 | ||
Defined Benefit Plan, Service Cost | 551 | $ 628 | 2,212 | $ 1,612 | |
Defined Benefit Plan, Interest Cost | 959 | 996 | 2,954 | 2,442 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (455) | (720) | (1,795) | (2,220) | |
Defined Benefit Plan, Amortization of Gain (Loss) | (61) | 21 | 229 | 97 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 994 | $ 925 | 3,600 | $ 1,931 | |
The US Plan [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 3,000 | $ 3,000 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ 83,415 | |||||
Provision for income taxes | $ 57,747 | $ 46,068 | $ 165,122 | $ 156,427 | ||
Income from continuing operations before provision for income taxes | 205,327 | $ 200,832 | $ 601,449 | $ 619,862 | ||
U.S. federal statutory rate | 21.00% | 35.00% | ||||
Effective Income Tax Rate Reconciliation, Percent | 27.50% | 25.20% | ||||
Deferred income taxes | $ 296,199 | $ 296,199 | $ 311,434 | |||
Tax Cuts And Jobs Act of 2017 Transition Tax Adjustment for Accumulated Foreign Earnings Provisional Amount | $ 10,000 | |||||
Excess Tax Benefit on Stock Based Payments | $ 1,000 | $ 4,000 | ||||
Effective Income Tax Rate Reconciliation, Change as a result of the Discrete Items, Percent | 2.10% | |||||
Stahlgruber [Member] | ||||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities | $ (78,130) |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | Jun. 30, 2019USD ($) | Sep. 30, 2019USD ($) | Sep. 30, 2018USD ($) | |
Segment Reporting Information | |||||
us-gaap_FairValueMeasuredOnRecurringBasisGainLossIncludedInEarnings | $ 0 | $ 2,509 | $ 0 | $ 2,509 | |
Impairment of net assets held for sale | (3,601) | 0 | $ 49,000 | 44,919 | 0 |
Segment EBITDA | 336,486 | 326,344 | 1,015,075 | 963,531 | |
Depreciation and amortization | 77,878 | 81,473 | $ 230,239 | 210,977 | |
Number of operating segments | 4 | ||||
Number of reportable segments | 3 | ||||
North America [Member] | |||||
Segment Reporting Information | |||||
Segment EBITDA | 166,310 | 154,049 | $ 532,994 | 506,772 | |
Depreciation and amortization | 23,593 | 22,151 | $ 68,257 | 64,985 | |
Number of reportable segments | 1 | ||||
Europe [Member] | |||||
Segment Reporting Information | |||||
Segment EBITDA | 124,712 | 129,358 | $ 346,291 | 315,785 | |
Depreciation and amortization | 47,302 | 52,139 | 141,087 | 124,697 | |
Specialty [Member] | |||||
Segment Reporting Information | |||||
Segment EBITDA | 45,464 | 42,937 | 135,790 | 140,974 | |
Depreciation and amortization | 6,983 | 7,183 | 20,895 | 21,295 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Information | |||||
Segment EBITDA | 0 | 0 | 0 | 0 | |
Depreciation and amortization | $ 0 | 0 | $ 0 | 0 | |
Andrew Page [Member] | |||||
Segment Reporting Information | |||||
Impairment of net assets held for sale | $ 0 | $ 2,438 |
Schedule of Financial Performan
Schedule of Financial Performance by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information | ||||
Revenues | $ 3,147,773 | $ 3,122,378 | $ 9,496,249 | $ 8,873,893 |
Segment EBITDA | 336,486 | 326,344 | 1,015,075 | 963,531 |
Depreciation and amortization | 77,878 | 81,473 | 230,239 | 210,977 |
North America [Member] | ||||
Segment Reporting Information | ||||
Revenues | 1,302,147 | 1,262,799 | 3,926,222 | 3,927,808 |
Segment EBITDA | 166,310 | 154,049 | 532,994 | 506,772 |
Depreciation and amortization | 23,593 | 22,151 | 68,257 | 64,985 |
Europe [Member] | ||||
Segment Reporting Information | ||||
Revenues | 1,451,483 | 1,470,856 | 4,413,264 | 3,795,439 |
Segment EBITDA | 124,712 | 129,358 | 346,291 | 315,785 |
Depreciation and amortization | 47,302 | 52,139 | 141,087 | 124,697 |
Specialty [Member] | ||||
Segment Reporting Information | ||||
Revenues | 395,314 | 390,061 | 1,160,687 | 1,154,726 |
Segment EBITDA | 45,464 | 42,937 | 135,790 | 140,974 |
Depreciation and amortization | 6,983 | 7,183 | 20,895 | 21,295 |
Intersegment Eliminations [Member] | ||||
Segment Reporting Information | ||||
Revenues | (1,171) | (1,338) | (3,924) | (4,080) |
Segment EBITDA | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Third Party [Member] | ||||
Segment Reporting Information | ||||
Revenues | 3,147,773 | 3,122,378 | 9,496,249 | 8,873,893 |
Third Party [Member] | North America [Member] | ||||
Segment Reporting Information | ||||
Revenues | 1,302,086 | 1,262,657 | 3,925,962 | 3,927,282 |
Third Party [Member] | Europe [Member] | ||||
Segment Reporting Information | ||||
Revenues | 1,451,483 | 1,470,856 | 4,413,264 | 3,795,439 |
Third Party [Member] | Specialty [Member] | ||||
Segment Reporting Information | ||||
Revenues | 394,204 | 388,865 | 1,157,023 | 1,151,172 |
Third Party [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment [Member] | ||||
Segment Reporting Information | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment [Member] | North America [Member] | ||||
Segment Reporting Information | ||||
Revenues | 61 | 142 | 260 | 526 |
Intersegment [Member] | Europe [Member] | ||||
Segment Reporting Information | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment [Member] | Specialty [Member] | ||||
Segment Reporting Information | ||||
Revenues | 1,110 | 1,196 | 3,664 | 3,554 |
Intersegment [Member] | Intersegment Eliminations [Member] | ||||
Segment Reporting Information | ||||
Revenues | $ (1,171) | $ (1,338) | $ (3,924) | $ (4,080) |
Reconciliation Of Segment EBITD
Reconciliation Of Segment EBITDA To Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | |
Reconciliation of Segment Earnings Before Interest Taxes Depreciation And Amortization to Net Income Table [Line Items] | ||||||
Business Combination, Adjustment, Inventory | $ 0 | $ 0 | $ 0 | $ 403 | ||
Net income | 152,593 | 134,480 | 403,761 | 445,109 | ||
Less: net income attributable to continuing noncontrolling interest | (46) | 378 | 2,321 | 1,040 | ||
Less: net income attributable to discontinued noncontrolling interest | (376) | 0 | (568) | 0 | ||
Noncontrolling interest | 54,933 | 54,933 | $ 56,454 | |||
Net income attributable to LKQ stockholders | 152,263 | 134,102 | 400,872 | 444,069 | ||
Net income from discontinued operations | (781) | 0 | (1,179) | 0 | ||
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 151,858 | 134,102 | 400,261 | 444,069 | ||
Depreciation and amortization | 71,513 | 76,701 | 213,349 | 196,322 | ||
Cost, Depreciation | 5,223 | 4,772 | 15,748 | 14,655 | ||
Depreciation and Amortization - Restructuring Expense - Cost of Goods Sold | 168 | 0 | 168 | 0 | ||
Depreciation and Amortization - Restructuring Expenses | 974 | 0 | 974 | 0 | ||
Interest expense, net of interest income | 31,976 | 40,860 | 103,949 | 107,647 | ||
Provision for income taxes | 57,747 | 46,068 | 165,122 | 156,427 | ||
EBITDA | 319,459 | 302,503 | 899,571 | 919,120 | ||
Equity in (losses) earnings of unconsolidated subsidiaries | 4,232 | (20,284) | (33,745) | (18,326) | ||
us-gaap_FairValueMeasuredOnRecurringBasisGainLossIncludedInEarnings | 0 | 2,509 | 0 | 2,509 | ||
Gains on bargain purchases | 0 | 0 | 0 | 328 | $ 2,418 | |
Restructuring Charges And Business Combination Acquisition Related Costs net of Restructuring Depreciation | 7,955 | 19,639 | ||||
Restructuring and acquisition related expenses | 8,929 | 6,614 | 20,613 | 26,546 | ||
CostofGoodsSoldRestructuringCharges | 17,130 | 0 | 17,130 | 0 | ||
Impairment of net assets held for sale | (3,601) | 0 | $ 49,000 | 44,919 | 0 | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | (225) | (548) | 71 | (465) | ||
Segment EBITDA | $ 336,486 | 326,344 | $ 1,015,075 | 963,531 | ||
Andrew Page [Member] | ||||||
Reconciliation of Segment Earnings Before Interest Taxes Depreciation And Amortization to Net Income Table [Line Items] | ||||||
Impairment of net assets held for sale | $ 0 | $ 2,438 |
Schedule of Capital Expenditure
Schedule of Capital Expenditures by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Segment Reporting Information | ||||
Capital Expenditures | $ 64,283 | $ 56,342 | $ 165,551 | $ 171,763 |
North America [Member] | ||||
Segment Reporting Information | ||||
Capital Expenditures | 29,430 | 27,996 | 83,833 | 86,864 |
Europe [Member] | ||||
Segment Reporting Information | ||||
Capital Expenditures | 30,916 | 23,904 | 72,333 | 69,582 |
Specialty [Member] | ||||
Segment Reporting Information | ||||
Capital Expenditures | $ 3,937 | $ 4,442 | $ 9,385 | $ 15,317 |
Schedule of Assets by Reportabl
Schedule of Assets by Reportable Segment (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Segment Reporting Information | ||
Receivables, net | $ 1,223,197 | $ 1,154,083 |
Inventories | 2,582,188 | 2,836,075 |
Property, plant and equipment, net | 1,184,188 | 1,220,162 |
Operating lease assets, net | 1,303,260 | 0 |
Equity method investments | 144,009 | 179,169 |
Other unallocated assets | 5,974,848 | 6,003,913 |
Total assets | 12,411,690 | 11,393,402 |
North America [Member] | ||
Segment Reporting Information | ||
Receivables, net | 405,218 | 411,818 |
Inventories | 975,561 | 1,076,306 |
Property, plant and equipment, net | 582,157 | 570,508 |
Operating lease assets, net | 813,412 | 0 |
Equity method investments | 17,275 | 16,404 |
Europe [Member] | ||
Segment Reporting Information | ||
Receivables, net | 705,031 | 649,174 |
Inventories | 1,274,483 | 1,410,264 |
Property, plant and equipment, net | 516,106 | 562,600 |
Operating lease assets, net | 404,444 | 0 |
Equity method investments | 126,734 | 162,765 |
Specialty [Member] | ||
Segment Reporting Information | ||
Receivables, net | 112,948 | 93,091 |
Inventories | 332,144 | 349,505 |
Property, plant and equipment, net | 85,925 | 87,054 |
Operating lease assets, net | $ 85,404 | $ 0 |
Segment and Geographic Inform_4
Segment and Geographic Information Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Revenues from External Customers and Long-Lived Assets | ||||
Revenues | $ 3,147,773 | $ 3,122,378 | $ 9,496,249 | $ 8,873,893 |
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenues | 1,579,691 | 1,535,557 | 4,735,134 | 4,716,927 |
UNITED KINGDOM | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenues | 394,621 | 408,474 | 1,217,199 | 1,294,155 |
GERMANY | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenues | 394,115 | 415,748 | 1,196,527 | 564,698 |
Other countries | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenues | $ 779,346 | $ 762,599 | $ 2,347,389 | $ 2,298,113 |
Schedule of Tangible Long-Lived
Schedule of Tangible Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Dec. 31, 2018 |
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | $ 2,487,448 | $ 1,220,162 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 1,485,843 | 620,125 |
UNITED KINGDOM | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 306,611 | 165,145 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 399,424 | 217,416 |
GERMANY | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | $ 295,570 | $ 217,476 |
Condensed Consolidating Stateme
Condensed Consolidating Statements of Income (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Jun. 30, 2019 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | |||||
Revenues | $ 3,147,773,000 | $ 3,122,378,000 | $ 9,496,249,000 | $ 8,873,893,000 | |
Cost of goods sold | 1,947,444,000 | 1,925,180,000 | 5,840,469,000 | 5,460,845,000 | |
Gross margin | 1,200,329,000 | 1,197,198,000 | 3,655,780,000 | 3,413,048,000 | |
Selling, general and administrative expenses | 892,124,000 | 879,150,000 | 2,687,024,000 | 2,472,085,000 | |
Restructuring and acquisition related expenses | 8,929,000 | 6,614,000 | 20,613,000 | 26,546,000 | |
Impairment of net assets held for sale | (3,601,000) | 0 | $ 49,000,000 | 44,919,000 | 0 |
Depreciation and amortization | 71,513,000 | 76,701,000 | 213,349,000 | 196,322,000 | |
Operating income | 231,364,000 | 234,733,000 | 689,875,000 | 718,095,000 | |
Other expense (income): | |||||
Interest expense, net of interest income | 31,976,000 | 40,860,000 | 103,949,000 | 107,647,000 | |
Intercompany interest (income) expense, net | 0 | 0 | 0 | 0 | |
Other income, net | (5,939,000) | (6,959,000) | (15,523,000) | (9,414,000) | |
Total other expense, net | 26,037,000 | 33,901,000 | 88,426,000 | 98,233,000 | |
Income from continuing operations before provision for income taxes | 205,327,000 | 200,832,000 | 601,449,000 | 619,862,000 | |
Provision for income taxes | 57,747,000 | 46,068,000 | 165,122,000 | 156,427,000 | |
Equity in earnings (losses) of unconsolidated subsidiaries | 4,232,000 | (20,284,000) | (33,745,000) | (18,326,000) | |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | |
Income from continuing operations | 151,812,000 | 134,480,000 | 402,582,000 | 445,109,000 | |
Net income from discontinued operations | 781,000 | 0 | 1,179,000 | 0 | |
Net income | 152,593,000 | 134,480,000 | 403,761,000 | 445,109,000 | |
Less: net income attributable to continuing noncontrolling interest | 46,000 | (378,000) | (2,321,000) | (1,040,000) | |
Less: net income attributable to discontinued noncontrolling interest | 376,000 | 0 | 568,000 | 0 | |
Net income attributable to LKQ stockholders | 152,263,000 | 134,102,000 | 400,872,000 | 444,069,000 | |
Parent | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenues | 0 | 0 | 0 | 0 | |
Cost of goods sold | 0 | 0 | 0 | 0 | |
Gross margin | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 15,015,000 | 6,725,000 | 36,744,000 | 25,538,000 | |
Restructuring and acquisition related expenses | 0 | 0 | 0 | 0 | |
Impairment of net assets held for sale | 0 | 0 | |||
Depreciation and amortization | 285,000 | 34,000 | 377,000 | 84,000 | |
Operating income | (15,300,000) | (6,759,000) | (37,121,000) | (25,622,000) | |
Other expense (income): | |||||
Interest expense, net of interest income | 12,895,000 | 16,191,000 | 39,517,000 | 52,004,000 | |
Intercompany interest (income) expense, net | (14,899,000) | (15,121,000) | (44,748,000) | (45,927,000) | |
Other income, net | (929,000) | (178,000) | (914,000) | (1,076,000) | |
Total other expense, net | (2,933,000) | 892,000 | (6,145,000) | 5,001,000 | |
Income from continuing operations before provision for income taxes | (12,367,000) | (7,651,000) | (30,976,000) | (30,623,000) | |
Provision for income taxes | (2,268,000) | (12,008,000) | (7,306,000) | (19,656,000) | |
Equity in earnings (losses) of unconsolidated subsidiaries | 0 | 0 | 0 | 0 | |
Equity in earnings of subsidiaries | 161,581,000 | 129,745,000 | 423,363,000 | 455,036,000 | |
Income from continuing operations | 151,482,000 | 399,693,000 | |||
Net income from discontinued operations | 781,000 | 1,179,000 | |||
Net income | 152,263,000 | 134,102,000 | 400,872,000 | 444,069,000 | |
Less: net income attributable to continuing noncontrolling interest | 0 | 0 | 0 | 0 | |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | |||
Net income attributable to LKQ stockholders | 152,263,000 | 134,102,000 | 400,872,000 | 444,069,000 | |
Guarantors | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenues | 1,593,983,000 | 1,550,301,000 | 4,774,588,000 | 4,768,292,000 | |
Cost of goods sold | 954,366,000 | 934,913,000 | 2,850,011,000 | 2,869,499,000 | |
Gross margin | 639,617,000 | 615,388,000 | 1,924,577,000 | 1,898,793,000 | |
Selling, general and administrative expenses | 442,554,000 | 434,965,000 | 1,301,827,000 | 1,292,455,000 | |
Restructuring and acquisition related expenses | 426,000 | 1,638,000 | 5,063,000 | 1,968,000 | |
Impairment of net assets held for sale | (2,339,000) | 39,355,000 | |||
Depreciation and amortization | 25,893,000 | 25,238,000 | 76,142,000 | 74,102,000 | |
Operating income | 173,083,000 | 153,547,000 | 502,190,000 | 530,268,000 | |
Other expense (income): | |||||
Interest expense, net of interest income | (166,000) | (193,000) | (285,000) | (94,000) | |
Intercompany interest (income) expense, net | 7,923,000 | 10,014,000 | 25,583,000 | 29,559,000 | |
Other income, net | (4,645,000) | (3,514,000) | (16,818,000) | (13,793,000) | |
Total other expense, net | 3,112,000 | 6,307,000 | 8,480,000 | 15,672,000 | |
Income from continuing operations before provision for income taxes | 169,971,000 | 147,240,000 | 493,710,000 | 514,596,000 | |
Provision for income taxes | 42,515,000 | 41,875,000 | 128,936,000 | 141,295,000 | |
Equity in earnings (losses) of unconsolidated subsidiaries | 393,000 | (156,000) | 871,000 | (156,000) | |
Equity in earnings of subsidiaries | 4,098,000 | 4,467,000 | 13,210,000 | 14,028,000 | |
Income from continuing operations | 131,947,000 | 378,855,000 | |||
Net income from discontinued operations | 0 | 0 | |||
Net income | 131,947,000 | 109,676,000 | 378,855,000 | 387,173,000 | |
Less: net income attributable to continuing noncontrolling interest | 0 | 0 | 0 | 0 | |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | |||
Net income attributable to LKQ stockholders | 131,947,000 | 109,676,000 | 378,855,000 | 387,173,000 | |
Non-Guarantors | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenues | 1,593,245,000 | 1,609,525,000 | 4,836,439,000 | 4,216,417,000 | |
Cost of goods sold | 1,032,533,000 | 1,027,715,000 | 3,105,236,000 | 2,702,162,000 | |
Gross margin | 560,712,000 | 581,810,000 | 1,731,203,000 | 1,514,255,000 | |
Selling, general and administrative expenses | 434,555,000 | 437,460,000 | 1,348,453,000 | 1,154,092,000 | |
Restructuring and acquisition related expenses | 8,503,000 | 4,976,000 | 15,550,000 | 24,578,000 | |
Impairment of net assets held for sale | (1,262,000) | 5,564,000 | |||
Depreciation and amortization | 45,335,000 | 51,429,000 | 136,830,000 | 122,136,000 | |
Operating income | 73,581,000 | 87,945,000 | 224,806,000 | 213,449,000 | |
Other expense (income): | |||||
Interest expense, net of interest income | 19,247,000 | 24,862,000 | 64,717,000 | 55,737,000 | |
Intercompany interest (income) expense, net | 6,976,000 | 5,107,000 | 19,165,000 | 16,368,000 | |
Other income, net | (365,000) | (3,267,000) | 2,209,000 | 5,455,000 | |
Total other expense, net | 25,858,000 | 26,702,000 | 86,091,000 | 77,560,000 | |
Income from continuing operations before provision for income taxes | 47,723,000 | 61,243,000 | 138,715,000 | 135,889,000 | |
Provision for income taxes | 17,500,000 | 16,201,000 | 43,492,000 | 34,788,000 | |
Equity in earnings (losses) of unconsolidated subsidiaries | 3,839,000 | (20,128,000) | (34,616,000) | (18,170,000) | |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 | |
Income from continuing operations | 34,062,000 | 60,607,000 | |||
Net income from discontinued operations | 781,000 | 1,179,000 | |||
Net income | 34,843,000 | 24,914,000 | 61,786,000 | 82,931,000 | |
Less: net income attributable to continuing noncontrolling interest | 46,000 | (378,000) | (2,321,000) | (1,040,000) | |
Less: net income attributable to discontinued noncontrolling interest | 376,000 | 568,000 | |||
Net income attributable to LKQ stockholders | 34,513,000 | 24,536,000 | 58,897,000 | 81,891,000 | |
Eliminations | |||||
Condensed Financial Statements, Captions [Line Items] | |||||
Revenues | (39,455,000) | (37,448,000) | (114,778,000) | (110,816,000) | |
Cost of goods sold | (39,455,000) | (37,448,000) | (114,778,000) | (110,816,000) | |
Gross margin | 0 | 0 | 0 | 0 | |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 | |
Restructuring and acquisition related expenses | 0 | 0 | 0 | 0 | |
Impairment of net assets held for sale | 0 | 0 | |||
Depreciation and amortization | 0 | 0 | 0 | 0 | |
Operating income | 0 | 0 | 0 | 0 | |
Other expense (income): | |||||
Interest expense, net of interest income | 0 | 0 | 0 | 0 | |
Intercompany interest (income) expense, net | 0 | 0 | 0 | 0 | |
Other income, net | 0 | 0 | 0 | 0 | |
Total other expense, net | 0 | 0 | 0 | 0 | |
Income from continuing operations before provision for income taxes | 0 | 0 | 0 | 0 | |
Provision for income taxes | 0 | 0 | 0 | 0 | |
Equity in earnings (losses) of unconsolidated subsidiaries | 0 | 0 | 0 | 0 | |
Equity in earnings of subsidiaries | (165,679,000) | (134,212,000) | (436,573,000) | (469,064,000) | |
Income from continuing operations | (165,679,000) | (436,573,000) | |||
Net income from discontinued operations | (781,000) | (1,179,000) | |||
Net income | (166,460,000) | (134,212,000) | (437,752,000) | (469,064,000) | |
Less: net income attributable to continuing noncontrolling interest | 0 | 0 | 0 | 0 | |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | |||
Net income attributable to LKQ stockholders | $ (166,460,000) | $ (134,212,000) | $ (437,752,000) | $ (469,064,000) |
Condensed Consolidating State_2
Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | |
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | $ 152,593,000 | $ 134,480,000 | $ 403,761,000 | $ 445,109,000 |
Less: net income attributable to continuing noncontrolling interest | (46,000) | 378,000 | 2,321,000 | 1,040,000 |
Less: net income attributable to discontinued noncontrolling interest | 376,000 | 0 | 568,000 | 0 |
Net income attributable to LKQ stockholders | 152,263,000 | 134,102,000 | 400,872,000 | 444,069,000 |
Other comprehensive income (loss): | ||||
Foreign currency translation, net of tax | (69,819,000) | (20,951,000) | (74,112,000) | (77,630,000) |
Net change in unrealized gains/losses on cash flow hedges, net of tax | (1,261,000) | 304,000 | (9,648,000) | 5,964,000 |
Net change in unrealized gains/losses on pension plans, net of tax | (2,353,000) | 1,274,000 | (2,134,000) | (154,000) |
Net change in other comprehensive loss from unconsolidated subsidiaries | (1,240,000) | (643,000) | (98,000) | (2,160,000) |
Other comprehensive loss | (72,193,000) | (18,730,000) | (85,796,000) | (69,660,000) |
Comprehensive income | 80,400,000 | 115,750,000 | 317,965,000 | 375,449,000 |
Comprehensive Income, Net of Tax, Attributable to Continuing Noncontrolling Interest | (46,000) | 378,000 | 2,321,000 | 1,040,000 |
Comprehensive Income, Net of Tax, Attributable to Discontinued Noncontrolling Interest | 376,000 | 0 | 568,000 | 0 |
Comprehensive income attributable to LKQ stockholders | 80,070,000 | 115,372,000 | 315,076,000 | 374,409,000 |
Parent | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 152,263,000 | 134,102,000 | 400,872,000 | 444,069,000 |
Less: net income attributable to continuing noncontrolling interest | 0 | 0 | 0 | 0 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | ||
Net income attributable to LKQ stockholders | 152,263,000 | 134,102,000 | 400,872,000 | 444,069,000 |
Other comprehensive income (loss): | ||||
Foreign currency translation, net of tax | (69,819,000) | (20,951,000) | (74,112,000) | (77,630,000) |
Net change in unrealized gains/losses on cash flow hedges, net of tax | (1,261,000) | 304,000 | (9,648,000) | 5,964,000 |
Net change in unrealized gains/losses on pension plans, net of tax | (2,353,000) | 1,274,000 | (2,134,000) | (154,000) |
Net change in other comprehensive loss from unconsolidated subsidiaries | (1,240,000) | (643,000) | (98,000) | (2,160,000) |
Other comprehensive loss | (72,193,000) | (18,730,000) | (85,796,000) | (69,660,000) |
Comprehensive income | 80,070,000 | 115,372,000 | 315,076,000 | 374,409,000 |
Comprehensive Income, Net of Tax, Attributable to Continuing Noncontrolling Interest | 0 | |||
Comprehensive Income, Net of Tax, Attributable to Discontinued Noncontrolling Interest | 0 | 0 | ||
Comprehensive income attributable to LKQ stockholders | 80,070,000 | 115,372,000 | 315,076,000 | 374,409,000 |
Guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 131,947,000 | 109,676,000 | 378,855,000 | 387,173,000 |
Less: net income attributable to continuing noncontrolling interest | 0 | 0 | 0 | 0 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | ||
Net income attributable to LKQ stockholders | 131,947,000 | 109,676,000 | 378,855,000 | 387,173,000 |
Other comprehensive income (loss): | ||||
Foreign currency translation, net of tax | (1,429,000) | 1,686,000 | 3,107,000 | (2,800,000) |
Net change in unrealized gains/losses on cash flow hedges, net of tax | 0 | 0 | 0 | 0 |
Net change in unrealized gains/losses on pension plans, net of tax | (2,385,000) | 1,246,000 | (2,399,000) | (239,000) |
Net change in other comprehensive loss from unconsolidated subsidiaries | 0 | 0 | 0 | 0 |
Other comprehensive loss | (3,814,000) | 2,932,000 | 708,000 | (3,039,000) |
Comprehensive income | 128,133,000 | 112,608,000 | 379,563,000 | 384,134,000 |
Comprehensive Income, Net of Tax, Attributable to Continuing Noncontrolling Interest | 0 | |||
Comprehensive Income, Net of Tax, Attributable to Discontinued Noncontrolling Interest | 0 | 0 | ||
Comprehensive income attributable to LKQ stockholders | 128,133,000 | 112,608,000 | 379,563,000 | 384,134,000 |
Non-Guarantors | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | 34,843,000 | 24,914,000 | 61,786,000 | 82,931,000 |
Less: net income attributable to continuing noncontrolling interest | (46,000) | 378,000 | 2,321,000 | 1,040,000 |
Less: net income attributable to discontinued noncontrolling interest | 376,000 | 568,000 | ||
Net income attributable to LKQ stockholders | 34,513,000 | 24,536,000 | 58,897,000 | 81,891,000 |
Other comprehensive income (loss): | ||||
Foreign currency translation, net of tax | (69,520,000) | (23,901,000) | (74,900,000) | (81,456,000) |
Net change in unrealized gains/losses on cash flow hedges, net of tax | 0 | 0 | 0 | 0 |
Net change in unrealized gains/losses on pension plans, net of tax | 32,000 | 28,000 | 265,000 | 85,000 |
Net change in other comprehensive loss from unconsolidated subsidiaries | (1,240,000) | (643,000) | (98,000) | (2,160,000) |
Other comprehensive loss | (68,248,000) | (23,230,000) | (74,537,000) | (79,211,000) |
Comprehensive income | (33,405,000) | 1,684,000 | (12,751,000) | 3,720,000 |
Comprehensive Income, Net of Tax, Attributable to Continuing Noncontrolling Interest | (46,000) | 378,000 | 2,321,000 | 1,040,000 |
Comprehensive Income, Net of Tax, Attributable to Discontinued Noncontrolling Interest | 376,000 | 568,000 | ||
Comprehensive income attributable to LKQ stockholders | (33,735,000) | 1,306,000 | (15,640,000) | 2,680,000 |
Eliminations | ||||
Condensed Financial Statements, Captions [Line Items] | ||||
Net income | (166,460,000) | (134,212,000) | (437,752,000) | (469,064,000) |
Less: net income attributable to continuing noncontrolling interest | 0 | 0 | 0 | 0 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | ||
Net income attributable to LKQ stockholders | (166,460,000) | (134,212,000) | (437,752,000) | (469,064,000) |
Other comprehensive income (loss): | ||||
Foreign currency translation, net of tax | 70,949,000 | 22,215,000 | 71,793,000 | 84,256,000 |
Net change in unrealized gains/losses on cash flow hedges, net of tax | 0 | 0 | 0 | 0 |
Net change in unrealized gains/losses on pension plans, net of tax | 2,353,000 | (1,274,000) | 2,134,000 | 154,000 |
Net change in other comprehensive loss from unconsolidated subsidiaries | 1,240,000 | 643,000 | 98,000 | 2,160,000 |
Other comprehensive loss | 72,062,000 | 20,298,000 | 73,829,000 | 82,250,000 |
Comprehensive income | (94,398,000) | (113,914,000) | (363,923,000) | (386,814,000) |
Comprehensive Income, Net of Tax, Attributable to Continuing Noncontrolling Interest | 0 | |||
Comprehensive Income, Net of Tax, Attributable to Discontinued Noncontrolling Interest | 0 | 0 | ||
Comprehensive income attributable to LKQ stockholders | $ (94,398,000) | $ (113,914,000) | $ (363,923,000) | $ (386,814,000) |
Condensed Consolidating Balance
Condensed Consolidating Balance Sheets (Details) - USD ($) $ in Thousands | Sep. 30, 2019 | Jun. 30, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Dec. 31, 2017 |
Current assets: | ||||||
Cash and cash equivalents | $ 433,391 | $ 331,761 | ||||
Receivables, net | 1,223,197 | 1,154,083 | ||||
Intercompany receivables, net | 0 | 0 | ||||
Inventories | 2,582,188 | 2,836,075 | ||||
Prepaid expenses and other current assets | 245,082 | 199,030 | ||||
Total current assets | 4,483,858 | 4,520,949 | ||||
Property, plant and equipment, net | 1,184,188 | 1,220,162 | ||||
Operating lease assets, net | 1,303,260 | 0 | ||||
Intangible assets: | ||||||
Goodwill | 4,309,822 | 4,381,458 | ||||
Other intangibles, net | 837,272 | 928,752 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Equity method investments | 144,009 | 179,169 | ||||
Other noncurrent assets | 149,281 | 162,912 | ||||
Total assets | 12,411,690 | 11,393,402 | ||||
Current liabilities: | ||||||
Accounts payable | 997,874 | 942,398 | ||||
Intercompany payables, net | 0 | 0 | ||||
Accrued expenses: | ||||||
Accrued payroll-related liabilities | 162,152 | 172,005 | ||||
Other accrued expenses | 326,634 | 288,425 | ||||
Refund liability | 100,327 | 104,585 | ||||
Other current liabilities | 113,349 | 61,109 | ||||
Current portion of operating lease liabilities | 225,572 | 0 | ||||
Current portion of long-term obligations | 128,143 | 121,826 | ||||
Total current liabilities | 2,054,051 | 1,690,348 | ||||
Long-term operating lease liabilities, excluding current portion | 1,129,423 | 0 | ||||
Long-term obligations, excluding current portion | 3,737,112 | 4,188,674 | ||||
Intercompany notes payable | 0 | 0 | ||||
Deferred income taxes | 296,199 | 311,434 | ||||
Other noncurrent liabilities | 322,205 | 364,194 | ||||
Total Company stockholders' equity | 4,817,767 | 4,782,298 | ||||
Noncontrolling interest | 54,933 | 56,454 | ||||
Total stockholders' equity | 4,872,700 | $ 4,909,748 | 4,838,752 | $ 4,897,416 | $ 4,776,975 | $ 4,206,653 |
Total liabilities and stockholders' equity | 12,411,690 | 11,393,402 | ||||
Parent | ||||||
Current assets: | ||||||
Cash and cash equivalents | 141,555 | 25,633 | ||||
Receivables, net | 0 | 310 | ||||
Intercompany receivables, net | 9,473 | 6,978 | ||||
Inventories | 0 | 0 | ||||
Prepaid expenses and other current assets | 6,347 | 18,611 | ||||
Total current assets | 157,375 | 51,532 | ||||
Property, plant and equipment, net | 459 | 1,547 | ||||
Operating lease assets, net | 3,754 | |||||
Intangible assets: | ||||||
Goodwill | 0 | 0 | ||||
Other intangibles, net | 629 | 260 | ||||
Investment in subsidiaries | 5,250,321 | 5,224,006 | ||||
Intercompany notes receivable | 1,118,688 | 1,220,582 | ||||
Equity method investments | 0 | 0 | ||||
Other noncurrent assets | 65,679 | 70,283 | ||||
Total assets | 6,596,905 | 6,568,210 | ||||
Current liabilities: | ||||||
Accounts payable | 2,802 | 2,454 | ||||
Intercompany payables, net | 0 | 0 | ||||
Accrued expenses: | ||||||
Accrued payroll-related liabilities | 6,911 | 6,652 | ||||
Other accrued expenses | 14,965 | 5,454 | ||||
Refund liability | 0 | 0 | ||||
Other current liabilities | 5,520 | 283 | ||||
Current portion of operating lease liabilities | 217 | |||||
Current portion of long-term obligations | 15,029 | 8,459 | ||||
Total current liabilities | 45,444 | 23,302 | ||||
Long-term operating lease liabilities, excluding current portion | 3,943 | |||||
Long-term obligations, excluding current portion | 1,613,249 | 1,628,677 | ||||
Intercompany notes payable | 0 | 0 | ||||
Deferred income taxes | 5,032 | 8,045 | ||||
Other noncurrent liabilities | 111,470 | 125,888 | ||||
Total Company stockholders' equity | 4,817,767 | 4,782,298 | ||||
Noncontrolling interest | 0 | 0 | ||||
Total stockholders' equity | 4,817,767 | 4,782,298 | ||||
Total liabilities and stockholders' equity | 6,596,905 | 6,568,210 | ||||
Guarantors | ||||||
Current assets: | ||||||
Cash and cash equivalents | 31,533 | 29,285 | ||||
Receivables, net | 337,543 | 316,726 | ||||
Intercompany receivables, net | 0 | 0 | ||||
Inventories | 1,228,576 | 1,343,612 | ||||
Prepaid expenses and other current assets | 95,389 | 99,356 | ||||
Total current assets | 1,693,041 | 1,788,979 | ||||
Property, plant and equipment, net | 612,127 | 600,054 | ||||
Operating lease assets, net | 854,956 | |||||
Intangible assets: | ||||||
Goodwill | 2,001,356 | 1,973,364 | ||||
Other intangibles, net | 254,255 | 272,451 | ||||
Investment in subsidiaries | 127,820 | 111,826 | ||||
Intercompany notes receivable | 108,071 | 10,515 | ||||
Equity method investments | 17,275 | 16,404 | ||||
Other noncurrent assets | 40,503 | 40,548 | ||||
Total assets | 5,709,404 | 4,814,141 | ||||
Current liabilities: | ||||||
Accounts payable | 346,907 | 343,116 | ||||
Intercompany payables, net | 27,939 | 12,880 | ||||
Accrued expenses: | ||||||
Accrued payroll-related liabilities | 55,803 | 70,267 | ||||
Other accrued expenses | 115,571 | 105,672 | ||||
Refund liability | 49,526 | 50,899 | ||||
Other current liabilities | 22,723 | 17,860 | ||||
Current portion of operating lease liabilities | 131,719 | |||||
Current portion of long-term obligations | 2,936 | 2,932 | ||||
Total current liabilities | 753,124 | 603,626 | ||||
Long-term operating lease liabilities, excluding current portion | 756,450 | |||||
Long-term obligations, excluding current portion | 15,533 | 13,532 | ||||
Intercompany notes payable | 537,341 | 597,283 | ||||
Deferred income taxes | 139,482 | 135,355 | ||||
Other noncurrent liabilities | 82,835 | 99,147 | ||||
Total Company stockholders' equity | 3,424,639 | 3,365,198 | ||||
Noncontrolling interest | 0 | 0 | ||||
Total stockholders' equity | 3,424,639 | 3,365,198 | ||||
Total liabilities and stockholders' equity | 5,709,404 | 4,814,141 | ||||
Non-Guarantors | ||||||
Current assets: | ||||||
Cash and cash equivalents | 260,303 | 276,843 | ||||
Receivables, net | 885,654 | 837,047 | ||||
Intercompany receivables, net | 27,939 | 12,880 | ||||
Inventories | 1,353,612 | 1,492,463 | ||||
Prepaid expenses and other current assets | 143,346 | 81,063 | ||||
Total current assets | 2,670,854 | 2,700,296 | ||||
Property, plant and equipment, net | 571,602 | 618,561 | ||||
Operating lease assets, net | 444,550 | |||||
Intangible assets: | ||||||
Goodwill | 2,308,466 | 2,408,094 | ||||
Other intangibles, net | 582,388 | 656,041 | ||||
Investment in subsidiaries | 0 | 0 | ||||
Intercompany notes receivable | 0 | 0 | ||||
Equity method investments | 126,734 | 162,765 | ||||
Other noncurrent assets | 43,099 | 52,081 | ||||
Total assets | 6,747,693 | 6,597,838 | ||||
Current liabilities: | ||||||
Accounts payable | 648,165 | 596,828 | ||||
Intercompany payables, net | 9,473 | 6,978 | ||||
Accrued expenses: | ||||||
Accrued payroll-related liabilities | 99,438 | 95,086 | ||||
Other accrued expenses | 196,098 | 177,299 | ||||
Refund liability | 50,801 | 53,686 | ||||
Other current liabilities | 85,106 | 42,966 | ||||
Current portion of operating lease liabilities | 93,636 | |||||
Current portion of long-term obligations | 110,178 | 110,435 | ||||
Total current liabilities | 1,292,895 | 1,083,278 | ||||
Long-term operating lease liabilities, excluding current portion | 369,030 | |||||
Long-term obligations, excluding current portion | 2,108,330 | 2,546,465 | ||||
Intercompany notes payable | 689,418 | 633,814 | ||||
Deferred income taxes | 151,685 | 168,034 | ||||
Other noncurrent liabilities | 127,900 | 139,159 | ||||
Total Company stockholders' equity | 1,953,502 | 1,970,634 | ||||
Noncontrolling interest | 54,933 | 56,454 | ||||
Total stockholders' equity | 2,008,435 | 2,027,088 | ||||
Total liabilities and stockholders' equity | 6,747,693 | 6,597,838 | ||||
Eliminations | ||||||
Current assets: | ||||||
Cash and cash equivalents | 0 | 0 | ||||
Receivables, net | 0 | 0 | ||||
Intercompany receivables, net | (37,412) | (19,858) | ||||
Inventories | 0 | 0 | ||||
Prepaid expenses and other current assets | 0 | 0 | ||||
Total current assets | (37,412) | (19,858) | ||||
Property, plant and equipment, net | 0 | 0 | ||||
Operating lease assets, net | 0 | |||||
Intangible assets: | ||||||
Goodwill | 0 | 0 | ||||
Other intangibles, net | 0 | 0 | ||||
Investment in subsidiaries | (5,378,141) | (5,335,832) | ||||
Intercompany notes receivable | (1,226,759) | (1,231,097) | ||||
Equity method investments | 0 | 0 | ||||
Other noncurrent assets | 0 | 0 | ||||
Total assets | (6,642,312) | (6,586,787) | ||||
Current liabilities: | ||||||
Accounts payable | 0 | 0 | ||||
Intercompany payables, net | (37,412) | (19,858) | ||||
Accrued expenses: | ||||||
Accrued payroll-related liabilities | 0 | 0 | ||||
Other accrued expenses | 0 | 0 | ||||
Refund liability | 0 | 0 | ||||
Other current liabilities | 0 | 0 | ||||
Current portion of operating lease liabilities | 0 | |||||
Current portion of long-term obligations | 0 | 0 | ||||
Total current liabilities | (37,412) | (19,858) | ||||
Long-term operating lease liabilities, excluding current portion | 0 | |||||
Long-term obligations, excluding current portion | 0 | 0 | ||||
Intercompany notes payable | (1,226,759) | (1,231,097) | ||||
Deferred income taxes | 0 | 0 | ||||
Other noncurrent liabilities | 0 | 0 | ||||
Total Company stockholders' equity | (5,378,141) | (5,335,832) | ||||
Noncontrolling interest | 0 | 0 | ||||
Total stockholders' equity | (5,378,141) | (5,335,832) | ||||
Total liabilities and stockholders' equity | $ (6,642,312) | $ (6,586,787) |
Condensed Consolidating State_3
Condensed Consolidating Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2019 | Sep. 30, 2018 | Sep. 30, 2019 | Sep. 30, 2018 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | ||||||
Proceeds from (Repayments of) Debt | $ (31,587) | $ (38,695) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | 965,171 | 521,167 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchases of property, plant and equipment | $ (64,283) | $ (56,342) | (165,551) | (171,763) | ||
Investment and intercompany note activity with subsidiaries | 0 | 0 | ||||
Proceeds from investment in subsidiary, distribution, return of capital | 0 | |||||
Acquisitions, net of cash acquired | (14,517) | (1,206,067) | $ (1,214,995) | |||
Proceeds from disposal of businesses | 19,505 | 0 | ||||
Investments in unconsolidated subsidiaries | (6,894) | (11,066) | ||||
Receipts of deferred purchase price on receivables under factoring arrangements | 0 | 9,410 | ||||
Other investing activities, net | 7,368 | 7,970 | ||||
Net cash used in investing activities | (160,089) | (1,371,516) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Debt issuance costs | 0 | (16,938) | ||||
Proceeds from issuance of Euro Notes (2026/28) | 0 | 1,232,100 | ||||
Purchase of treasury stock | (291,813) | 0 | (60,000) | |||
Borrowings under revolving credit facilities | 390,275 | 1,025,496 | ||||
Repayments under revolving credit facilities | (613,758) | (1,110,035) | ||||
Repayments under term loans | (6,563) | (114,800) | ||||
Borrowings under receivables securitization facility | 36,600 | 0 | ||||
Other financing activities, net | (7,125) | 2,186 | ||||
Investment and intercompany note activity with parent | 0 | 0 | ||||
Dividends | 0 | 0 | ||||
Net cash (used in) provided by financing activities | (689,694) | 979,314 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (9,702) | (67,385) | ||||
Net increase in cash, cash equivalents and restricted cash | 105,686 | 61,580 | ||||
Cash and cash equivalents, beginning of period | 337,250 | $ 279,766 | ||||
Repayments under receivables securitization facility | (146,600) | 0 | ||||
Repayments Of Notes Payable Issued From Acquisitions | 19,123 | 0 | ||||
Cash, cash equivalents and restricted cash, end of period | 438,608 | 341,346 | 438,608 | 341,346 | 337,250 | 279,766 |
Cash, cash equivalents and restricted cash of continuing and discontinued operations, end of period | 442,936 | 341,346 | 442,936 | 341,346 | ||
Disposal Group, Discontinued Operations, Cash and Cash Equivalents | (4,328) | 0 | (4,328) | 0 | ||
Parent | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Proceeds from (Repayments of) Debt | (747) | (385) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | 404,790 | 334,226 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchases of property, plant and equipment | (563) | (315) | ||||
Investment and intercompany note activity with subsidiaries | 33,838 | 73,096 | ||||
Proceeds from investment in subsidiary, distribution, return of capital | 152,443 | |||||
Acquisitions, net of cash acquired | 0 | 0 | ||||
Proceeds from disposal of businesses | 0 | |||||
Investments in unconsolidated subsidiaries | 0 | 0 | ||||
Receipts of deferred purchase price on receivables under factoring arrangements | 0 | 0 | ||||
Other investing activities, net | 966 | 887 | ||||
Net cash used in investing activities | 34,241 | 226,111 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Debt issuance costs | (1,354) | |||||
Proceeds from issuance of Euro Notes (2026/28) | 0 | |||||
Purchase of treasury stock | (291,813) | |||||
Borrowings under revolving credit facilities | 216,000 | 304,000 | ||||
Repayments under revolving credit facilities | (220,896) | (732,897) | ||||
Repayments under term loans | (6,563) | (114,800) | ||||
Borrowings under receivables securitization facility | 0 | |||||
Other financing activities, net | 33 | (996) | ||||
Investment and intercompany note activity with parent | 0 | 0 | ||||
Dividends | 0 | 0 | ||||
Net cash (used in) provided by financing activities | (323,109) | (546,432) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | ||||
Net increase in cash, cash equivalents and restricted cash | 115,922 | 13,905 | ||||
Repayments under receivables securitization facility | 0 | |||||
Repayments Of Notes Payable Issued From Acquisitions | 19,123 | |||||
Cash, cash equivalents and restricted cash, end of period | 141,555 | 48,265 | 141,555 | 48,265 | 25,633 | 34,360 |
Cash, cash equivalents and restricted cash of continuing and discontinued operations, end of period | 141,555 | 141,555 | ||||
Disposal Group, Discontinued Operations, Cash and Cash Equivalents | 0 | 0 | ||||
Guarantors | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Proceeds from (Repayments of) Debt | (908) | 101 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | 196,160 | 142,626 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchases of property, plant and equipment | (86,713) | (93,063) | ||||
Investment and intercompany note activity with subsidiaries | 0 | 0 | ||||
Proceeds from investment in subsidiary, distribution, return of capital | 0 | |||||
Acquisitions, net of cash acquired | (10,118) | (2,888) | ||||
Proceeds from disposal of businesses | 19,682 | |||||
Investments in unconsolidated subsidiaries | (2,550) | (11,066) | ||||
Receipts of deferred purchase price on receivables under factoring arrangements | 264,998 | 224,753 | ||||
Other investing activities, net | 2,318 | 2,162 | ||||
Net cash used in investing activities | 187,617 | 119,898 | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Debt issuance costs | 0 | |||||
Proceeds from issuance of Euro Notes (2026/28) | 0 | |||||
Purchase of treasury stock | 0 | |||||
Borrowings under revolving credit facilities | 0 | 0 | ||||
Repayments under revolving credit facilities | 0 | 0 | ||||
Repayments under term loans | 0 | 0 | ||||
Borrowings under receivables securitization facility | 0 | |||||
Other financing activities, net | 0 | 0 | ||||
Investment and intercompany note activity with parent | (29,242) | (62,763) | ||||
Dividends | (352,001) | (203,448) | ||||
Net cash (used in) provided by financing activities | (382,151) | (266,110) | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 622 | (463) | ||||
Net increase in cash, cash equivalents and restricted cash | 2,248 | (4,049) | ||||
Repayments under receivables securitization facility | 0 | |||||
Repayments Of Notes Payable Issued From Acquisitions | 0 | |||||
Cash, cash equivalents and restricted cash, end of period | 31,533 | 31,082 | 31,533 | 31,082 | 29,285 | 35,131 |
Cash, cash equivalents and restricted cash of continuing and discontinued operations, end of period | 31,533 | 31,533 | ||||
Disposal Group, Discontinued Operations, Cash and Cash Equivalents | 0 | 0 | ||||
Non-Guarantors | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Proceeds from (Repayments of) Debt | (29,932) | (38,411) | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | 451,224 | 97,506 | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchases of property, plant and equipment | (78,275) | (78,385) | ||||
Investment and intercompany note activity with subsidiaries | 0 | 0 | ||||
Proceeds from investment in subsidiary, distribution, return of capital | 0 | |||||
Acquisitions, net of cash acquired | (4,399) | (1,203,179) | ||||
Proceeds from disposal of businesses | (177) | |||||
Investments in unconsolidated subsidiaries | (4,344) | 0 | ||||
Receipts of deferred purchase price on receivables under factoring arrangements | 0 | 9,410 | ||||
Other investing activities, net | 4,084 | 4,921 | ||||
Net cash used in investing activities | (83,111) | (1,267,233) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Debt issuance costs | (15,584) | |||||
Proceeds from issuance of Euro Notes (2026/28) | 1,232,100 | |||||
Purchase of treasury stock | 0 | |||||
Borrowings under revolving credit facilities | 174,275 | 721,496 | ||||
Repayments under revolving credit facilities | (392,862) | (377,138) | ||||
Repayments under term loans | 0 | 0 | ||||
Borrowings under receivables securitization facility | 36,600 | |||||
Other financing activities, net | (7,158) | 3,182 | ||||
Investment and intercompany note activity with parent | (4,596) | (10,333) | ||||
Dividends | 0 | (226,939) | ||||
Net cash (used in) provided by financing activities | (370,273) | 1,288,373 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (10,324) | (66,922) | ||||
Net increase in cash, cash equivalents and restricted cash | (12,484) | 51,724 | ||||
Repayments under receivables securitization facility | (146,600) | |||||
Repayments Of Notes Payable Issued From Acquisitions | 0 | |||||
Cash, cash equivalents and restricted cash, end of period | 265,520 | 261,999 | 265,520 | 261,999 | 282,332 | 210,275 |
Cash, cash equivalents and restricted cash of continuing and discontinued operations, end of period | 269,848 | 269,848 | ||||
Disposal Group, Discontinued Operations, Cash and Cash Equivalents | (4,328) | (4,328) | ||||
Eliminations | ||||||
Condensed Financial Statements, Captions [Line Items] | ||||||
Proceeds from (Repayments of) Debt | 0 | 0 | ||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||
Net cash provided by operating activities | (87,003) | (53,191) | ||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||
Purchases of property, plant and equipment | 0 | 0 | ||||
Investment and intercompany note activity with subsidiaries | (33,838) | (73,096) | ||||
Proceeds from investment in subsidiary, distribution, return of capital | (152,443) | |||||
Acquisitions, net of cash acquired | 0 | 0 | ||||
Proceeds from disposal of businesses | 0 | |||||
Investments in unconsolidated subsidiaries | 0 | 0 | ||||
Receipts of deferred purchase price on receivables under factoring arrangements | (264,998) | (224,753) | ||||
Other investing activities, net | 0 | 0 | ||||
Net cash used in investing activities | (298,836) | (450,292) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||
Debt issuance costs | 0 | |||||
Proceeds from issuance of Euro Notes (2026/28) | 0 | |||||
Purchase of treasury stock | 0 | |||||
Borrowings under revolving credit facilities | 0 | 0 | ||||
Repayments under revolving credit facilities | 0 | 0 | ||||
Repayments under term loans | 0 | 0 | ||||
Borrowings under receivables securitization facility | 0 | |||||
Other financing activities, net | 0 | 0 | ||||
Investment and intercompany note activity with parent | 33,838 | 73,096 | ||||
Dividends | 352,001 | 430,387 | ||||
Net cash (used in) provided by financing activities | 385,839 | 503,483 | ||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0 | 0 | ||||
Net increase in cash, cash equivalents and restricted cash | 0 | 0 | ||||
Repayments under receivables securitization facility | 0 | |||||
Repayments Of Notes Payable Issued From Acquisitions | 0 | |||||
Cash, cash equivalents and restricted cash, end of period | 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 |
Cash, cash equivalents and restricted cash of continuing and discontinued operations, end of period | 0 | 0 | ||||
Disposal Group, Discontinued Operations, Cash and Cash Equivalents | $ 0 | $ 0 |