Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Jul. 30, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 2021 | |
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, State or Province | IL | |
Entity Address, Postal Zip Code | 60661 | |
City Area Code | 312 | |
Local Phone Number | 621-1950 | |
Title of 12(b) Security | Common Stock, par value $.01 per share | |
Trading Symbol | LKQ | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 293,875,364 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0001065696 | |
Current Fiscal Year End Date | --12-31 |
Consolidated Statements of Inco
Consolidated Statements of Income Statement - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenue | $ 3,435,114 | $ 2,626,323 | $ 6,605,900 | $ 5,627,258 |
Cost of goods sold | 2,019,405 | 1,615,319 | 3,896,477 | 3,402,378 |
Gross margin | 1,415,709 | 1,011,004 | 2,709,423 | 2,224,880 |
Selling, general and administrative expenses | 901,667 | 737,369 | 1,750,232 | 1,637,180 |
Restructuring and acquisition related expenses | 5,069 | 24,950 | 12,954 | 31,920 |
(Gain) loss on disposal of businesses and impairment of net assets held for sale | (597) | 2,485 | (582) | 2,236 |
Depreciation and amortization | 64,896 | 65,747 | 130,697 | 131,242 |
Operating income | 444,674 | 180,453 | 816,122 | 422,302 |
Other expense (income): | ||||
Interest expense, net of interest income | 16,172 | 25,616 | 40,351 | 51,547 |
Loss on debt extinguishment | (23,564) | 0 | (23,564) | (12,751) |
Other income, net | (4,311) | (8,174) | (10,524) | (11,796) |
Total other expense, net | 35,425 | 17,442 | 53,391 | 52,502 |
Income from continuing operations before provision for income taxes | 409,249 | 163,011 | 762,731 | 369,800 |
Provision for income taxes | 107,719 | 41,869 | 200,688 | 102,280 |
Equity in earnings (losses) of unconsolidated subsidiaries | 3,478 | (2,649) | 9,297 | (2,133) |
Income from continuing operations | 305,008 | 118,493 | 571,340 | 265,387 |
Net income (loss) from discontinued operations | 0 | 277 | 0 | (638) |
Net income | 305,008 | 118,770 | 571,340 | 264,749 |
Less: net income (loss) attributable to continuing noncontrolling interest | 384 | (22) | 803 | 718 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | 0 | 103 |
Net income attributable to LKQ stockholders | $ 304,624 | $ 118,792 | $ 570,537 | $ 263,928 |
Basic earnings per share: (1) | ||||
Income from continuing operations | $ 1.01 | $ 0.39 | $ 1.89 | $ 0.87 |
Net income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net income | 1.01 | 0.39 | 1.89 | 0.87 |
Less: net income (loss) attributable to continuing noncontrolling interest | 0 | 0 | 0 | 0 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to LKQ stockholders | 1.01 | 0.39 | 1.89 | 0.86 |
Diluted earnings per share: (1) | ||||
Income from continuing operations | 1.01 | 0.39 | 1.89 | 0.87 |
Net income (loss) from discontinued operations | 0 | 0 | 0 | 0 |
Net income | 1.01 | 0.39 | 1.89 | 0.87 |
Less: net income (loss) attributable to continuing noncontrolling interest | 0 | 0 | 0 | 0 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | 0 | 0 |
Net income attributable to LKQ stockholders | $ 1.01 | $ 0.39 | $ 1.89 | $ 0.86 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 305,008 | $ 118,770 | $ 571,340 | $ 264,749 |
Less: net income (loss) attributable to continuing noncontrolling interest | 384 | (22) | 803 | 718 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | 0 | 103 |
Net income attributable to LKQ stockholders | 304,624 | 118,792 | 570,537 | 263,928 |
Other comprehensive income (loss): | ||||
Foreign currency translation, net of tax | 21,864 | 31,334 | (2,708) | (72,631) |
Net change in unrealized gains/losses on cash flow hedges, net of tax | 211 | (31) | 869 | (7,352) |
Net change in unrealized gains/losses on pension plans, net of tax | 313 | 1,875 | 626 | 1,995 |
Other comprehensive income (loss) from unconsolidated subsidiaries | 2,644 | 962 | (868) | (890) |
Other comprehensive income (loss) | 25,032 | 34,140 | (2,081) | (78,878) |
Comprehensive income | 330,040 | 152,910 | 569,259 | 185,871 |
Less: comprehensive income (loss) attributable to continuing noncontrolling interest | 384 | (22) | 803 | 718 |
Less: comprehensive income attributable to discontinued noncontrolling interest | 0 | 0 | 0 | 103 |
Comprehensive income attributable to LKQ stockholders | $ 329,656 | $ 152,932 | $ 568,456 | $ 185,050 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 328,700 | $ 312,154 |
Receivables, net | 1,225,735 | 1,073,389 |
Inventories | 2,394,147 | 2,414,612 |
Prepaid expenses and other current assets | 219,952 | 233,877 |
Total current assets | 4,168,534 | 4,034,032 |
Property, plant and equipment, net | 1,207,156 | 1,248,703 |
Operating lease assets, net | 1,368,143 | 1,353,124 |
Intangible assets: | ||
Goodwill | 4,568,087 | 4,591,569 |
Other intangibles, net | 768,471 | 814,219 |
Equity method investments | 168,467 | 155,224 |
Other noncurrent assets | 189,201 | 163,662 |
Total assets | 12,438,059 | 12,360,533 |
Current liabilities: | ||
Accounts payable | 1,191,250 | 932,406 |
Accrued expenses: | ||
Accrued payroll-related liabilities | 214,288 | 208,718 |
Refund liability | 106,331 | 102,148 |
Other accrued expenses | 363,891 | 334,890 |
Other current liabilities | 110,500 | 130,021 |
Current portion of operating lease liabilities | 201,071 | 221,811 |
Current portion of long-term obligations | 90,825 | 58,497 |
Total current liabilities | 2,278,156 | 1,988,491 |
Long-term operating lease liabilities, excluding current portion | 1,215,279 | 1,197,963 |
Long-term obligations, excluding current portion | 2,360,685 | 2,812,641 |
Deferred income taxes | 285,426 | 291,421 |
Other noncurrent liabilities | 380,427 | 374,640 |
Redeemable noncontrolling interest | 24,077 | 24,077 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 321,260,012 shares issued and 296,287,913 shares outstanding at June 30, 2021; 320,867,602 shares issued and 303,553,000 shares outstanding at December 31, 2020 | 3,212 | 3,208 |
Additional paid-in capital | 1,458,993 | 1,444,584 |
Retained earnings | 5,346,577 | 4,776,040 |
Accumulated other comprehensive loss | (101,090) | (99,009) |
Treasury stock, at cost; 24,972,099 shares at June 30, 2021 and 17,314,602 shares at December 31, 2020 | (829,768) | (469,105) |
Total Company stockholders' equity | 5,877,924 | 5,655,718 |
Noncontrolling interest | 16,085 | 15,582 |
Total stockholders' equity | 5,894,009 | 5,671,300 |
Total liabilities and stockholders' equity | $ 12,438,059 | $ 12,360,533 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
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 | 321,260,012 | 320,867,602 |
Common stock, shares outstanding | 296,287,913 | 303,553,000 |
Treasury Stock, Common, Shares | 24,972,099 | 17,314,602 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 571,340,000 | $ 264,749,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 142,340,000 | 144,309,000 |
Stock-based compensation expense | 16,793,000 | 15,763,000 |
Loss on debt extinguishment | 23,564,000 | 12,751,000 |
Other | (24,516,000) | (1,318,000) |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | ||
Receivables, net | (161,334,000) | (5,111,000) |
Inventories | 7,284,000 | 445,493,000 |
Prepaid income taxes/income taxes payable | (18,800,000) | 84,125,000 |
Accounts payable | 284,472,000 | (172,140,000) |
Other operating assets and liabilities | 91,947,000 | 124,431,000 |
Net cash provided by operating activities | 933,090,000 | 913,052,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Purchases of property, plant and equipment | (87,854,000) | (77,301,000) |
Proceeds from disposals of property, plant and equipment | 11,820,000 | 6,110,000 |
Acquisitions, net of cash acquired | (29,480,000) | (5,465,000) |
Other investing activities, net | (3,502,000) | 685,000 |
Net cash used in investing activities | (109,016,000) | (75,971,000) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Early-redemption premium | (16,014,000) | (9,498,000) |
Borrowings under revolving credit facilities | 3,613,568,000 | 494,485,000 |
Repayments under revolving credit facilities | 2,792,867,000 | 601,480,000 |
Repayments under term loans | 323,750,000 | 8,750,000 |
Borrowings under receivables securitization facility | 0 | 111,300,000 |
Repayments under receivables securitization facility | 0 | (111,300,000) |
Borrowings (repayments) of other debt, net | 39,533,000 | (66,073,000) |
Settlement of derivative instruments, net | (88,743,000) | 0 |
Purchase of treasury stock | (343,830,000) | (88,006,000) |
Other financing activities, net | 13,329,000 | 10,832,000 |
Net cash used in financing activities | (808,707,000) | (890,154,000) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 1,179,000 | (5,358,000) |
Net increase (decrease) in cash, cash equivalents and restricted cash | 16,546,000 | (58,431,000) |
Cash And Cash Equivalents, Continuing Operations | 312,154,000 | 528,387,000 |
Disposal Group, Including Discontinued Operation, Cash and Cash Equivalents | 0 | 6,470,000 |
Cash and Cash Equivalents, at Carrying Value, Including Discontinued Operations, Beginning Balance | 312,154,000 | 534,857,000 |
Cash, and cash equivalents, end of period | 328,700,000 | 476,426,000 |
Supplemental disclosure of cash paid for: | ||
Income taxes, net of refunds | 226,400,000 | 24,452,000 |
Interest | 45,184,000 | 55,910,000 |
Supplemental disclosure of noncash investing and financing activities: | ||
Leased assets obtained in exchange for finance lease liabilities | 4,279,000 | 8,225,000 |
Leased assets obtained in exchange for operating lease liabilities | 137,129,000 | 90,961,000 |
Noncash property, plant and equipment and software intangible additions in accounts payable and other accrued expenses | 8,878,000 | 7,200,000 |
Notes payable and other financing obligations, including notes issued and debt assumed in connection with business acquisitions and disposals | 2,556,000 | 6,136,000 |
Notes receivable and contingent consideration receivable acquired in connection with disposal of business | 0 | 8,549,000 |
Contingent consideration liabilities | 0 | 3,045,000 |
Euro Notes 2026 | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of U.S. Notes (2023) | (883,275,000) | 0 |
US Notes (2023) [Member] | ||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repayment of U.S. Notes (2023) | $ 0 | $ (600,000,000) |
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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
BALANCE, April 1, 2021 | (13,196) | ||||||
BALANCE, April 1, 2021 | 319,927 | ||||||
BALANCE, April 1, 2021 | $ 5,048,580 | $ 3,199 | $ (351,813) | $ 1,418,239 | $ 4,140,136 | $ (200,885) | $ 39,704 |
BALANCE, June 30, 2021 at Mar. 31, 2020 | (16,496) | ||||||
BALANCE, June 30, 2021 at Mar. 31, 2020 | 320,439 | ||||||
BALANCE, June 30, 2021 at Mar. 31, 2020 | 4,987,319 | $ 3,204 | $ (439,819) | 1,425,600 | 4,282,753 | (313,903) | 29,484 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Net income | 263,928 | 263,928 | |||||
Less: net income (loss) attributable to continuing noncontrolling interest | 718 | 821 | |||||
Net income | 264,749 | ||||||
Other comprehensive income (loss) | (78,878) | (78,878) | |||||
Restricted Stock Units Vested Shares Net Of Tax Withholdings | 491 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | (2,125) | $ 5 | (2,130) | ||||
Stock-based compensation expense | 15,763 | 15,763 | |||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | 314 | 314 | |||||
Purchase of treasury stock | (3,300) | ||||||
Purchase of treasury stock | (88,006) | $ (88,006) | |||||
Exercise of stock options | 112 | ||||||
Exercise of stock options | 1,467 | $ 1 | 1,466 | ||||
Cumulative Effect on Retained Earnings, before Tax | (2,519) | (2,519) | |||||
Noncontrolling Interest, Decrease from Deconsolidation | (11,404) | (11,404) | |||||
BALANCE, June 30, 2021 at Jun. 30, 2020 | (16,496) | ||||||
BALANCE, June 30, 2021 at Jun. 30, 2020 | 320,530 | ||||||
BALANCE, June 30, 2021 at Jun. 30, 2020 | 5,147,941 | $ 3,205 | $ (439,819) | 1,433,338 | 4,401,545 | (279,763) | 29,435 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
BALANCE, April 1, 2021 | (16,496) | ||||||
BALANCE, April 1, 2021 | 320,439 | ||||||
BALANCE, April 1, 2021 | 4,987,319 | $ 3,204 | $ (439,819) | 1,425,600 | 4,282,753 | (313,903) | 29,484 |
Net income | 118,792 | 118,792 | |||||
Less: net income (loss) attributable to continuing noncontrolling interest | (22) | (22) | |||||
Net income | 118,770 | ||||||
Other comprehensive income (loss) | 34,140 | 34,140 | |||||
Restricted Stock Units Vested Shares Net Of Tax Withholdings | 91 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | (56) | $ 1 | (57) | ||||
Stock-based compensation expense | 7,795 | 7,795 | |||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | (27) | (27) | |||||
BALANCE, June 30, 2021 at Jun. 30, 2020 | (16,496) | ||||||
BALANCE, June 30, 2021 at Jun. 30, 2020 | 320,530 | ||||||
BALANCE, June 30, 2021 at Jun. 30, 2020 | 5,147,941 | $ 3,205 | $ (439,819) | 1,433,338 | 4,401,545 | (279,763) | 29,435 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
BALANCE, April 1, 2021 | (16,496) | ||||||
BALANCE, April 1, 2021 | 320,530 | ||||||
BALANCE, April 1, 2021 | 5,147,941 | $ 3,205 | $ (439,819) | 1,433,338 | 4,401,545 | (279,763) | 29,435 |
BALANCE, April 1, 2021 | (17,315) | ||||||
BALANCE, April 1, 2021 | 320,868 | ||||||
BALANCE, April 1, 2021 | 5,671,300 | $ 3,208 | $ (469,105) | 1,444,584 | 4,776,040 | (99,009) | 15,582 |
Net income | 570,537 | 570,537 | |||||
Less: net income (loss) attributable to continuing noncontrolling interest | 803 | 803 | |||||
Net income | 571,340 | ||||||
Other comprehensive income (loss) | (2,081) | (2,081) | |||||
Restricted Stock Units Vested Shares Net Of Tax Withholdings | 392 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | (2,380) | $ 4 | (2,384) | ||||
Stock-based compensation expense | 16,793 | 16,793 | |||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | (142) | (142) | |||||
Foreign currency translation adjustment on noncontrolling interest | (158) | (158) | |||||
Purchase of treasury stock | (7,657) | ||||||
Purchase of treasury stock | (360,663) | $ (360,663) | |||||
BALANCE, June 30, 2021 at Jun. 30, 2021 | (24,972) | ||||||
BALANCE, June 30, 2021 at Jun. 30, 2021 | 321,260 | ||||||
BALANCE, June 30, 2021 at Jun. 30, 2021 | 5,894,009 | $ 3,212 | $ (829,768) | 1,458,993 | 5,346,577 | (101,090) | 16,085 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
BALANCE, April 1, 2021 | (18,801) | ||||||
BALANCE, April 1, 2021 | 321,171 | ||||||
BALANCE, April 1, 2021 | 5,858,627 | $ 3,212 | $ (526,084) | 1,449,667 | 5,041,953 | (126,122) | 16,001 |
Net income | 304,624 | 304,624 | |||||
Less: net income (loss) attributable to continuing noncontrolling interest | 384 | 384 | |||||
Net income | 305,008 | ||||||
Other comprehensive income (loss) | 25,032 | 25,032 | |||||
Restricted Stock Units Vested Shares Net Of Tax Withholdings | 89 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | 325 | $ 0 | 325 | ||||
Stock-based compensation expense | 9,001 | 9,001 | |||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | (142) | (142) | |||||
Foreign currency translation adjustment on noncontrolling interest | (158) | (158) | |||||
Purchase of treasury stock | (6,171) | ||||||
Purchase of treasury stock | (303,684) | $ (303,684) | |||||
BALANCE, June 30, 2021 at Jun. 30, 2021 | (24,972) | ||||||
BALANCE, June 30, 2021 at Jun. 30, 2021 | 321,260 | ||||||
BALANCE, June 30, 2021 at Jun. 30, 2021 | 5,894,009 | $ 3,212 | $ (829,768) | 1,458,993 | 5,346,577 | (101,090) | 16,085 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
BALANCE, April 1, 2021 | (24,972) | ||||||
BALANCE, April 1, 2021 | 321,260 | ||||||
BALANCE, April 1, 2021 | $ 5,894,009 | $ 3,212 | $ (829,768) | $ 1,458,993 | $ 5,346,577 | $ (101,090) | $ 16,085 |
Interim Financial Statements
Interim Financial Statements | 6 Months Ended |
Jun. 30, 2021 | |
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. 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, 2020 filed with the SEC on February 26, 2021 ("2020 Form 10-K"). The coronavirus disease 2019 ("COVID-19") pandemic and the resulting governmental actions taken to control the virus have impacted, and are expected to continue to impact, our business in 2020 and 2021. The effects include, but are not limited to, a reduction in demand for our products and services relative to 2019, liquidity challenges for certain of our customers and suppliers, and organizational changes, such as personnel reductions and route consolidation undertaken mostly in 2020, driven by cost actions to mitigate the revenue decline. We have considered COVID-19 impacts in the preparation of our financial statements and footnotes. Specific disclosures are presented in the following footnotes as applicable. The continuing impact of COVID-19 on our business, results of operations, financial condition and cash flows is dependent on future developments, including the severity and duration of the pandemic and the related impact on the global economy, which are uncertain and cannot be predicted at this time, but may be material. |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Discontinued Operations [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued OperationsOn 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. Prior to closing, 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.We completed the sale of Stahlgruber's Czech Republic business on February 28, 2020, resulting in an immaterial loss on sale (presented in Net (loss) income from discontinued operations in the Unaudited Condensed Consolidated Statements of Income). As part of the transaction, we purchased the 48.2% noncontrolling interest from the minority shareholder for a purchase price of €8 million, which included the issuance of €4 million of notes payable, and then immediately thereafter sold 100% of the business for a purchase price of €14 million, which included €7 million of notes receivable. This transaction resulted in a disposition of noncontrolling interest of $11 million. From January 1, 2020 through the date of sale, we recorded an immaterial amount of net income (excluding the loss on sale) from discontinued operations related to the business, of which an immaterial amount was attributable to the noncontrolling interest. |
Financial Statement Information
Financial Statement Information (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Financial Statement Information [Text Block] | Financial Statement Information Allowance for Credit Losses Receivables, net are reported net of an allowance for credit losses. Management evaluates the aging of customer receivable balances, the financial condition of our customers, historical trends, and macroeconomic factors to estimate the amount of customer receivables that may not be collected in the future and records a provision it believes is appropriate. Our reserve for expected lifetime credit losses was $69 million and $70 million as of June 30, 2021 and December 31, 2020, respectively. Bad debt expense totaled $1 million and $14 million for the three months ended June 30, 2021 and 2020, respectively, and $4 million and $24 million for the six months ended June 30, 2021 and 2020, respectively. Inventories Inventories consist of the following (in thousands): June 30, December 31, 2021 2020 Aftermarket and refurbished products $ 1,984,301 $ 2,025,002 Salvage and remanufactured products 382,565 368,815 Manufactured products 27,281 20,795 Total inventories $ 2,394,147 $ 2,414,612 Aftermarket and refurbished products and salvage and remanufactured products are primarily composed of finished goods. As of June 30, 2021, manufactured products inventory was composed of $21 million of raw materials, $4 million of work in process, and $2 million of finished goods. As of December 31, 2020, manufactured products inventory was composed of $16 million of raw materials, $3 million of work in process, and $2 million of finished goods. Intangible Assets Goodwill and indefinite-lived intangible assets are tested for impairment at least annually. We performed our annual impairment test during the fourth quarter of 2020 and we determined no impairment existed as all of our reporting units had a fair value estimate which exceeded the carrying value by at least 30%. Goodwill impairment testing may also be performed on an interim basis when events or circumstances arise that may lead to impairment. The fair value estimates of our reporting units were established using weightings of the results of a discounted cash flow methodology and a comparative market multiples approach. We did not identify a triggering event in 2021 that necessitated an interim test of goodwill impairment or indefinite-lived intangible assets impairment. Investments in Unconsolidated Subsidiaries Our investment in unconsolidated subsidiaries was $168 million and $155 million as of June 30, 2021 and December 31, 2020, respectively. Europe Segment Our investment in unconsolidated subsidiaries in Europe was $147 million and $137 million as of June 30, 2021 and December 31, 2020, respectively. We recorded equity in earnings of $3 million and $9 million during the three and six months ended June 30, 2021, respectively, and equity in losses of an immaterial amount and equity in earnings of $1 million during the three and six months ended June 30, 2020, respectively, mainly related to our investment in Mekonomen AB ("Mekonomen"). We are accounting for our 26.6% equity 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 June 30, 2021, our share of the book value of Mekonomen's net assets exceeded the book value of our investment in Mekonomen by $7 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. Mekonomen announced in March 2020 and February 2021, respectively, that the Mekonomen Board of Directors proposed no dividend payment in 2020 or 2021. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at June 30, 2021 was $245 million (using the Mekonomen share price of SEK 141 as of June 30, 2021) compared to a carrying value of $137 million. North America Segment Our investment in unconsolidated subsidiaries in the North America segment was $21 million and $19 million as of June 30, 2021 and December 31, 2020, respectively. We recorded equity in earnings of an immaterial amount for each of the three and six months ended June 30, 2021, and equity in losses of $3 million during both the three and six months ended June 30, 2020, related to our North America equity method investments. 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 or four 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, 2020 $ 27,914 Warranty expense 37,117 Warranty claims (35,238) Balance as of June 30, 2021 $ 29,793 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. Government Assistance During the three and six months ended June 30, 2021 and 2020, we recorded financial assistance from foreign governments, primarily in the form of grants, as credits in the following amounts (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Cost of goods sold $ 219 $ 469 $ 363 $ 469 Selling, general and administrative expenses 5,393 32,174 14,238 32,174 Total government assistance $ 5,612 $ 32,643 $ 14,601 $ 32,643 For the six months ended June 30, 2021 and 2020, we received grants from European governments of $11 million and $28 million, respectively, with the remaining amounts related to Canada. Financial assistance received from governments is recorded during the period in which we incur the costs that the assistance is intended to offset (and only if it is probable that we will meet the conditions required under the terms of the assistance). Leases - Cash Flow Disclosure The amount disclosed for Leased assets obtained in exchange for operating lease liabilities for the six months ended June 30, 2020 in the supplemental disclosure of noncash investing and financing activities in the Unaudited Condensed Consolidated Statements of Cash Flows includes an immaterial correction of $55 million to address an omission of the impact of lease modifications and terminations. Stockholders' Equity Treasury Stock As of June 30, 2021, our Board of Directors had authorized a stock repurchase program under which we may purchase up to $1.0 billion of our common stock from time to time through October 25, 2022. 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. Repurchased shares are accounted for as treasury stock using the cost method. During the three and six months ended June 30, 2021, we repurchased 6.2 million and 7.7 million shares of common stock, respectively, for an aggregate price of $304 million and $361 million, respectively, of which $17 million settled for cash in July. During the six months ended June 30, 2020, we repurchased 3.3 million shares of common stock for an aggregate price of $88 million; we did not repurchase any shares during the three months ended June 30, 2020. As of June 30, 2021, there was $170 million of remaining capacity under our repurchase program. Subsequent to quarter end through July 23, 2021, we repurchased an additional 2.0 million shares for $100 million. On July 28, 2021, our Board of Directors authorized a $1.0 billion increase and a two year extension to our stock repurchase program, raising the aggregate authorization under the program to $2.0 billion and authorizing repurchases through October 25, 2024. Noncontrolling Interest In February 2020, as part of the sale of Stahlgruber's Czech Republic business, we divested the noncontrolling interest of the business, which resulted in a net decrease to Noncontrolling interest of $11 million in our unaudited condensed consolidated financial statements as of March 31, 2020. See Note 2, "Discontinued Operations," for further information. In December 2019, we modified the shares of a noncontrolling interest of a subsidiary acquired in connection with the Stahlgruber acquisition and issued new redeemable shares to the minority shareholder. The new redeemable shares contain (i) a put option for all noncontrolling interest shares at a fixed price of $24 million (€21 million) for the minority shareholder exercisable in the fourth quarter of 2023, (ii) a call option for all noncontrolling interest shares at a fixed price of $26 million (€23 million) for the Company exercisable beginning in the first quarter of 2026 through the end of the fourth quarter of 2027, and (iii) a guaranteed dividend to be paid quarterly to the minority shareholder through the fourth quarter of 2023. The new redeemable shares do not provide the minority shareholder with rights to participate in the profits and losses of the subsidiary prior to the exercise date of the put option. As the put option is outside the control of the Company, we recorded a $24 million Redeemable noncontrolling interest at the put option's redemption value outside of permanent equity on our Unaudited Condensed Consolidated Balance Sheets. Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In the first quarter of 2021, we adopted ASU No. 2019-12, "Income Taxes" (Topic 740) ("ASU 2019-12"), which simplifies the accounting for income taxes and adds guidance to reduce complexity in certain areas. We adopted the standard in the first quarter using the prospective approach. The adoption of this accounting standard did not have a material impact on our unaudited condensed consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"), which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. ASU 2020-04 provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. Entities may apply the provisions of the new standard as of the beginning of the reporting period when the election is made (i.e., as early as the first quarter of 2020). Unlike other topics, the provisions of this update are only available until December 31, 2022. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures, and we have not yet elected an adoption date. |
Goodwill and Intangible Assets Disclosure | Intangible AssetsGoodwill and indefinite-lived intangible assets are tested for impairment at least annually. We performed our annual impairment test during the fourth quarter of 2020 and we determined no impairment existed as all of our reporting units had a fair value estimate which exceeded the carrying value by at least 30%. Goodwill impairment testing may also be performed on an interim basis when events or circumstances arise that may lead to impairment. The fair value estimates of our reporting units were established using weightings of the results of a discounted cash flow methodology and a comparative market multiples approach. We did not identify a triggering event in 2021 that necessitated an interim test of goodwill impairment or indefinite-lived intangible assets impairment. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Reconition (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 North America $ 1,077,171 $ 892,826 $ 2,095,608 $ 2,000,168 Europe 1,569,697 1,206,330 3,025,067 2,564,299 Specialty 531,403 404,002 989,362 751,408 Parts and services 3,178,271 2,503,158 6,110,037 5,315,875 Other 256,843 123,165 495,863 311,383 Total revenue $ 3,435,114 $ 2,626,323 $ 6,605,900 $ 5,627,258 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; recreational vehicles; towing; wheels, tires and performance handling; and miscellaneous accessories. Our service-type warranties typically have service periods ranging from 6 months to 36 months. 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, 2021 $ 25,622 Additional warranty revenue deferred 30,962 Warranty revenue recognized (26,966) Balance as of June 30, 2021 $ 29,618 Other Revenue Revenue from other sources includes sales of scrap and precious metals (platinum, palladium, and rhodium), bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from our furnace operations. We derive scrap metal and other precious metals 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. Revenue from the sale of hulks in our wholesale and self service recycling operations is recognized based on a price per ton of delivered material 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 14, "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 including returns, discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, or other similar items. Under FASB Accounting Standards Codification Topic 606 ("ASC 606"), we are required to select the “expected value method” or the “most |
Restructuring and Acquisition R
Restructuring and Acquisition Related Expenses (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Restructuring and Acquisition Related Expenses [Abstract] | |
Business Acquisition, Integration, Restructuring and Other Related Costs [Text Block] | Restructuring and Acquisition Related Expenses 2019 Global Restructuring Program In the second quarter of 2019, we commenced 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 useful lives. During the three and six months ended June 30, 2020, we incur red $2 million and $5 million, re spectively, of restructuring expenses under this program, primarily related to facility exit costs and employee-related costs. The program costs incurred during the three and six months ended June 30, 2020, primarily related to our Europe and North America segments. The actions under this program are substantially complete, and the expenses incurred during the three and six months ended June 30, 2021 were immaterial. We estimate that total program costs will be approximately $46 million, of which approximately $31 million, $14 million and $1 million will be in our Europe, North America and Specialty segments, respectively. As of June 30, 2021, the remaining expected costs and restructuring liabilities related to this program were immaterial. 2020 Global Restructuring Program Beginning in the first quarter of 2020, we initiated a further restructuring program aimed at cost reductions across all our reportable segments through the elimination of underperforming assets and cost inefficiencies. These actions are incremental to those initiated as part of the 2019 Global Restructuring Program, and include 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 of earlier than the end of the previously estimated useful lives. We expanded this program during the second and third quarters of 2020 as we identified additional opportunities to eliminate inefficiencies, including actions in response to impacts to our business from COVID-19. During the three and six months ended June 30, 2021, we recognized restructuring expenses of $4 million and $6 million, respectively, which included employee-related costs, facility exit costs, and a $3 million gain in the first quarter from the sale of a building to be closed as part of the restructuring plan in the first half of 2021. During the three and six months ended June 30, 2020, we recognized restructuring expenses totaling $25 million and $27 million, respectively, for employee-related costs, facility exit costs and inventory write-downs. Of the cumulative program costs incurred to date, $28 million, $26 million and $1 million related to our North America, Europe and Specialty segments, respectively. We estimate total costs under the program through its expected completion date in 2023 will be between $65 million and $75 million, of which approximately $36 million, $31 million, and $2 million will be incurred by our Europe, North America and Specialty segments, respectively; these segment amounts represent the midpoints of the expected ranges of costs to be incurred by each segment. As of June 30, 2021 and December 31, 2020, restructuring liabilities incurred related to this program totaled $17 million and $21 million, respectively, including $13 million and $17 million, respectively, related to leases we have exited or expect to exit prior to the end of the lease term (reported in Current portion of operating lease liabilities and Long-term operating lease liabilities, excluding current portion on our Unaudited Condensed Consolidated Balance Sheets), and $3 million and $4 million, respectively, for employee termination costs (reported in Accrued payroll-related liabilities on our Unaudited Condensed Consolidated Balance Sheets). Our lease-related restructuring liabilities are estimated based on remaining rent payments after our actual exit date for facilities closed through the second quarter of 2021 and after our planned exit date for facilities we expect to close in future periods; these liabilities do not reflect any estimated proceeds we may be able to achieve through subleasing the facilities. Acquisition Integration Plans During the three and six months ended June 30, 2021, we incurred immaterial restructuring expenses for our acquisition integration plans. We expect to incur future expenses of up to $5 million to complete an integration plan related to an acquisition completed in our Specialty segment in 2021. During the three and six months ended June 30, 2020, we incurre d $4 million and $5 million of restructuring expenses, respectively, for our acquisition integration plans. These expenses were primarily related to the integ ration of our operations in Belgium. 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. While certain projects were delayed in 2020 as a result of the COVID-19 pandemic, such as our procurement initiatives and the new headquarters in Switzerland, we also accelerated certain projects, such as the integration of previously acquired networks and sharing resources across LKQ Europe. We completed the organizational design and implementation projects in June 2021, with the remaining projects scheduled to be completed by 2024. During the six months ended June 30, 2021, we incurred $5 million of employee-related restructuring charges under our 1 LKQ Europe program; costs incurred in the three months ended June 30, 2021 were immaterial. We estimate that we will incur between $45 million and $55 million in total personnel and inventory-related restructuring charges through 2024 under the program. We may identify additional initiatives and projects under the 1 LKQ Europe program in future periods 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. As of June 30, 2021, the restructuring liabilities related to this program were immaterial. |
Equity Incentive Plans
Equity Incentive Plans | 6 Months Ended |
Jun. 30, 2021 | |
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 all 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. 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. 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 following retirement; 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 six months ended June 30, 2021 was $19 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 six months ended June 30, 2021: Number Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2021 1,479,672 $ 31.71 Granted (2) 725,478 $ 39.02 Vested (452,189) $ 32.10 Forfeited / Canceled (29,950) $ 34.06 Unvested as of June 30, 2021 1,723,011 $ 34.55 Expected to vest after June 30, 2021 1,539,272 $ 34.78 3.1 $ 75,763 (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 the expected to vest RSUs vested. This amount changes based on the market price of the Company’s common stock. (2) The weighted average grant date fair value of RSUs granted during the six months ended June 30, 2020 was $31.71. Starting 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 applicable three year performance periods. The following table summarizes activity related to our PSUs under the Equity Incentive Plan for the six months ended June 30, 2021: Number Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2021 291,601 $ 29.98 Granted (2) 121,810 $ 38.50 Forfeited / Canceled (1,166) $ 30.26 Unvested as of June 30, 2021 412,245 $ 32.50 Expected to vest after June 30, 2021 412,245 $ 32.50 1.4 $ 20,291 (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 the expected to vest 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. The weighted average grant date fair value of PSUs granted during the six months ended June 30, 2020 was $31.85. Stock-Based Compensation Expense Pre-tax stock-based compensation expense for RSUs and PSUs totaled $9 million and $17 million the three and six months ended June 30, 2021, respectively, and $8 million and $16 million for the three and six months ended June 30, 2020, respectively. As of June 30, 2021, unrecognized compensation expense related to unvested RSUs and PSUs was $58 million. Stock-based compensation expense related to these awards will be different to the extent that forfeitures are realized and performance under the PSUs dif fers from target. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Income from continuing operations $ 305,008 $ 118,493 $ 571,340 $ 265,387 Denominator for basic earnings per share—Weighted-average shares outstanding 300,581 304,001 301,805 305,123 Effect of dilutive securities: RSUs 712 189 670 352 PSUs 174 — 134 — Stock options — — — 2 Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding 301,467 304,190 302,609 305,477 Basic earnings per share from continuing operations $ 1.01 $ 0.39 $ 1.89 $ 0.87 Diluted earnings per share from continuing operations (1) $ 1.01 $ 0.39 $ 1.89 $ 0.87 (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 six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Antidilutive securities: RSUs — 1,444 59 913 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Foreign Unrealized (Loss) Gain Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated BALANCE, April 1, 2021 $ (81,698) $ (310) $ (32,654) $ (11,460) $ (126,122) Pretax income (loss) 21,864 (296) — — 21,568 Income tax effect — 59 — — 59 Reclassification of unrealized loss — 585 437 — 1,022 Reclassification of deferred income taxes — (137) (124) — (261) Other comprehensive income from unconsolidated subsidiaries — — — 2,644 2,644 BALANCE, June 30, 2021 $ (59,834) $ (99) $ (32,341) $ (8,816) $ (101,090) Three Months Ended June 30, 2020 Foreign Unrealized (Loss) Gain Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated BALANCE, April 1, 2020 $ (274,858) $ (1,963) $ (31,814) $ (5,268) $ (313,903) Pretax income (loss) 30,663 (7,807) — — 22,856 Income tax effect — 1,842 — — 1,842 Reclassification of unrealized loss — 7,761 2,655 — 10,416 Reclassification of deferred income taxes — (1,827) (780) — (2,607) Disposal of business 671 — — — 671 Other comprehensive income from unconsolidated subsidiaries — — — 962 962 BALANCE, June 30, 2020 $ (243,524) $ (1,994) $ (29,939) $ (4,306) $ (279,763) Six Months Ended June 30, 2021 Foreign Unrealized (Loss) Gain Unrealized (Loss) Gain Other Comprehensive Loss from Unconsolidated Subsidiaries Accumulated BALANCE, January 1, 2021 $ (57,126) $ (968) $ (32,967) $ (7,948) $ (99,009) Pretax (loss) income (2,708) 2,823 — — 115 Income tax effect — (677) — — (677) Reclassification of unrealized (gain) loss — (1,758) 874 — (884) Reclassification of deferred income taxes — 481 (248) — 233 Other comprehensive loss from unconsolidated subsidiaries — — — (868) (868) BALANCE, June 30, 2021 $ (59,834) $ (99) $ (32,341) $ (8,816) $ (101,090) Six Months Ended June 30, 2020 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive Loss from Unconsolidated Subsidiaries Accumulated BALANCE, January 1, 2020 $ (170,893) $ 5,358 $ (31,934) $ (3,416) $ (200,885) Pretax loss (73,397) (3,625) — — (77,022) Income tax effect — 858 — — 858 Reclassification of unrealized (gain) loss — (5,946) 2,769 — (3,177) Reclassification of deferred income taxes — 1,361 (774) — 587 Disposal of business 766 — — — 766 Other comprehensive loss from unconsolidated subsidiaries — — — (890) (890) BALANCE, June 30, 2020 $ (243,524) $ (1,994) $ (29,939) $ (4,306) $ (279,763) 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 Six Months Ended June 30, June 30, Classification 2021 2020 2021 2020 Unrealized (losses) gains on interest rate swaps Interest expense, net of interest income $ (495) $ (1,769) $ (1,188) $ 1,527 Unrealized gains on cross currency swaps Interest expense, net of interest income — 2,796 539 5,347 Unrealized (losses) gains on cross currency swaps (1) Other income, net — (8,788) 1,973 (928) Unrealized (losses) gains on foreign currency forward contracts (1) Other income, net (90) — 434 — Total $ (585) $ (7,761) $ 1,758 $ 5,946 (1) The amounts reclassified to Other income, net in our Unaudited Condensed Consolidated Statements of Income offset the impact of the remeasurement of the underlying transactions. Net unrealized losses and gains related to our pension plans were reclassified to Other income, net in our Unaudited Condensed Consolidated Statements of Income during each of the three and six months ended June 30, 2021 and 2020. Our policy is to reclassify the income tax effect from Accumulated other comprehensive loss to the Provision for income taxes when the related gains and losses are released to the Unaudited Condensed Consolidated Statements of Income. |
Accumulated Other Comprehensive Income (Loss) | The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands): Three Months Ended June 30, 2021 Foreign Unrealized (Loss) Gain Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated BALANCE, April 1, 2021 $ (81,698) $ (310) $ (32,654) $ (11,460) $ (126,122) Pretax income (loss) 21,864 (296) — — 21,568 Income tax effect — 59 — — 59 Reclassification of unrealized loss — 585 437 — 1,022 Reclassification of deferred income taxes — (137) (124) — (261) Other comprehensive income from unconsolidated subsidiaries — — — 2,644 2,644 BALANCE, June 30, 2021 $ (59,834) $ (99) $ (32,341) $ (8,816) $ (101,090) Three Months Ended June 30, 2020 Foreign Unrealized (Loss) Gain Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated BALANCE, April 1, 2020 $ (274,858) $ (1,963) $ (31,814) $ (5,268) $ (313,903) Pretax income (loss) 30,663 (7,807) — — 22,856 Income tax effect — 1,842 — — 1,842 Reclassification of unrealized loss — 7,761 2,655 — 10,416 Reclassification of deferred income taxes — (1,827) (780) — (2,607) Disposal of business 671 — — — 671 Other comprehensive income from unconsolidated subsidiaries — — — 962 962 BALANCE, June 30, 2020 $ (243,524) $ (1,994) $ (29,939) $ (4,306) $ (279,763) Six Months Ended June 30, 2021 Foreign Unrealized (Loss) Gain Unrealized (Loss) Gain Other Comprehensive Loss from Unconsolidated Subsidiaries Accumulated BALANCE, January 1, 2021 $ (57,126) $ (968) $ (32,967) $ (7,948) $ (99,009) Pretax (loss) income (2,708) 2,823 — — 115 Income tax effect — (677) — — (677) Reclassification of unrealized (gain) loss — (1,758) 874 — (884) Reclassification of deferred income taxes — 481 (248) — 233 Other comprehensive loss from unconsolidated subsidiaries — — — (868) (868) BALANCE, June 30, 2021 $ (59,834) $ (99) $ (32,341) $ (8,816) $ (101,090) Six Months Ended June 30, 2020 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive Loss from Unconsolidated Subsidiaries Accumulated BALANCE, January 1, 2020 $ (170,893) $ 5,358 $ (31,934) $ (3,416) $ (200,885) Pretax loss (73,397) (3,625) — — (77,022) Income tax effect — 858 — — 858 Reclassification of unrealized (gain) loss — (5,946) 2,769 — (3,177) Reclassification of deferred income taxes — 1,361 (774) — 587 Disposal of business 766 — — — 766 Other comprehensive loss from unconsolidated subsidiaries — — — (890) (890) BALANCE, June 30, 2020 $ (243,524) $ (1,994) $ (29,939) $ (4,306) $ (279,763) |
Long-Term Obligations
Long-Term Obligations | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Long-Term Obligations Long-term obligations consist of the following (in thousands): June 30, December 31, 2021 2020 Senior secured credit agreement: Term loans payable $ — $ 323,750 Revolving credit facilities 1,434,898 642,958 Euro Notes (2024) 592,900 610,800 Euro Notes (2026/28) 296,450 1,221,600 Receivables securitization facility — — Notes payable through October 2030 at weighted average interest rates of 3.3% and 3.3%, respectively 22,605 24,526 Finance lease obligations at weighted average interest rates of 3.5% and 3.5%, respectively 53,841 57,336 Other debt at weighted average interest rates of 0.8% and 1.2%, respectively 65,446 15,706 Total debt 2,466,140 2,896,676 Less: long-term debt issuance costs (14,324) (25,225) Less: current debt issuance costs (306) (313) Total debt, net of debt issuance costs 2,451,510 2,871,138 Less: current maturities, net of debt issuance costs (90,825) (58,497) Long term debt, net of debt issuance costs $ 2,360,685 $ 2,812,641 Senior Secured Credit Agreement On June 11, 2020, LKQ Corporation and certain other subsidiaries of LKQ (collectively, the "Borrowers") entered into Amendment No. 4 to the Fourth Amended and Restated Credit Agreement dated January 29, 2016 (the "Credit Agreement"), which modifies the maximum permitted net leverage ratio through the quarter ending September 30, 2021. Prior to the amendment, the maximum permitted net leverage ratio was 4.00:1.00. After the amendment, the maximum permitted net leverage ratio became (i) 4.50:1.00 for the quarter ended June 30, 2021 and (ii) 4.25:1.00 for the quarter ending September 30, 2021. Beginning with the quarter ending December 31, 2021, the maximum permitted net leverage ratio reverts to the terms in effect prior to the amendment. In the event that the net leverage ratio is greater than 4.00:1.00, the Company would be restricted from repurchasing its shares. We can at any time elect to cancel the modifications to the maximum permitted net leverage ratio and revert to the terms in effect prior to the amendment, subject to compliance with the 4.00:1.00 ratio. Amendment No. 4 to the Credit Agreement also made certain other immaterial modifications. On December 14, 2020, we entered into Amendment No. 5 to the Credit Agreement; the amendment added as a borrower our subsidiary LKQ Europe GmbH, a Swiss limited liability company, and made certain other immaterial or clarifying modifications. The total availability under the revolving credit facility's multicurrency component is $3.15 billion . Amounts outstanding under the revolving credit facility are due and payable upon maturity of the Credit Agreement on January 29, 2024. We were 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. During the second quarter, we exercised this option to prepay the outstanding amount on the term loan, and thus we did not have any term loan borrowings as of June 30, 2021. 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 10, "Derivative Instruments and Hedging Activities," the weighted average interest rates on borrowings outstanding under the Credit Agreement at June 30, 2021 and December 31, 2020 were 1.1% and 1.7%, 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 no current maturities as of June 30, 2021 and $18 million classified as current maturities as of December 31, 2020. As of June 30, 2021, there were letters of credit outstanding in the aggregate amount of $71 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 June 30, 2021 was $1.6 billion . Related to the execution of Amendment No. 4 to the Fourth Amended and Restated Credit Agreement in June 2020, 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) On January 10, 2020, we redeemed the $600 million aggregate principal amount of 4.75% senior notes due 2023 (the "U.S Notes (2023)") at a redemption price equal to 101.583% of the principal amount of the U.S. Notes (2023) plus accrued and unpaid interest thereon to, but not including, January 10, 2020. The total redemption payment was $614 million, including an early-redemption premium of $9 million and accrued and unpaid interest of $4 million. In the first quarter of 2020, we recorded a loss on debt extinguishment of $13 million on the Unaudited Condensed Consolidated Statements of Income related to the redemption due to the early-redemption premium and the write-off of the unamortized debt issuance costs. 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 "Euro Notes (2026)") and €250 million senior notes due 2028 (the "Euro Notes (2028)" and, together with the Euro Notes (2026), 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 used (i) to 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. On April 1, 2021, we redeemed the 3.625% Euro Notes (2026) at a redemption price equal to 101.813% of the principal amount of the Euro Notes (2026) plus accrued and unpaid interest thereon to, but not including, April 1, 2021. The total redemption payment was $915 million (€777 million), including an early-redemption premium of $16 million (€14 million) and accrued and unpaid interest of $16 million (€14 million). In the second quarter of 2021, we recorded a loss on debt extinguishment of $24 million related to the redemption due to the early-redemption premium and the write-off of the unamortized debt issuance costs. The Euro Notes (2028) notes bear interest at a rate of 4.125% 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 (2028) is payable in arrears on April 1 and October 1 of each year. The Euro Notes (2028) are fully and unconditionally guaranteed by LKQ Corporation and the Euro Notes (2028) Subsidiaries (the "Euro Notes (2028) Guarantors"). The Euro Notes (2028) and the related guarantees are, respectively, LKQ Euro Holdings' and each Euro Notes (2028) Guarantor’s senior unsecured obligations and will be subordinated to all of LKQ Euro Holdings' and the Euro Notes (2028) Guarantors’ existing and future secured debt to the extent of the assets securing that secured debt. In addition, the Euro Notes (2028) are effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the Euro Notes (2028) to the extent of the assets of those subsidiaries. The Euro Notes (2028) have been listed on the Global Exchange Market of Euronext Dublin. The Euro Notes (2028) 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, 2023, we may redeem some or all of the Euro Notes (2028) at the applicable redemption prices set forth in the Euro Notes (2026/28) Indenture. We may be required to make an offer to purchase the Euro Notes (2028) 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 (2028) 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. Receivables Securitization Facility On December 20, 2018, we amended the terms of our receivables securitization facility with MUFG Bank, Ltd. ("MUFG") 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. Net receivables totaling $113 million and $121 million were collateral for the investments under the receivables facility as of June 30, 2021 and December 31, 2020, respectively. 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), 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. There was no outstanding balance as of June 30, 2021 or December 31, 2020. Effective July 30, 2021, we terminated the receivables securitization facility. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
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 may 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 Through June 30, 2021, we held 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 paid the fixed interest rate and received 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 were recorded in Accumulated other comprehensive income (loss) and were reclassified to Interest expense, net of interest income when the underlying interest payment impacted earnings. At December 31, 2020, we held cross currency swaps, which contained an interest rate swap component and a foreign currency forward contract component that, combined with related intercompany financing arrangements, effectively converted variable rate U.S. dollar-denominated borrowings into fixed rate euro-denominated borrowings. The swaps were intended to minimize the impact of fluctuating exchange rates and interest rates on the cash flows resulting from the related intercompany financing arrangements. Changes in the fair value of the derivative instruments were recorded in Accumulated other comprehensive income (loss) and were reclassified to Interest expense, net of interest income and Other income, net when the underlying transactions had an impact on earnings. 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 where we are applying hedge accounting are recorded in Accumulated other comprehensive income (loss) and reclassified to Other income, net when the underlying transaction has an impact on earnings. As of June 30, 2021, we held no cash flow hedges, and as of December 31, 2020, we held cash flow hedges with the following notional amounts and fair values (in thousands): December 31, 2020 Interest rate swap agreements USD denominated $ 480,000 Cross currency swap agreements Euro denominated € 340,000 Foreign currency forward contracts SEK denominated kr 227,000 Other Accrued Expenses Fair Value at December 31, 2020 Interest rate swap agreements $ 899 Cross currency swap agreements 56,328 Foreign currency forward contracts 1,350 Total cash flow hedges $ 58,577 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 have no effect on our Unaudited Condensed Consolidated Balance Sheets at December 31, 2020. The activity related to our cash flow hedges is included in Note 8, "Accumulated Other Comprehensive Income (Loss)." The activity related to our cash flow hedges is presented in either operating activities or financing activities in our Unaudited Condensed Consolidated Statements of Cash Flows. Other Derivative Instruments Not Designated as Hedges To manage our foreign currency exposure on non-functional currency denominated borrowings, we entered into short term foreign currency forward contracts. As of June 30, 2021, we held no foreign currency forward contracts related to non-functional currency denominated borrowings. At December 31, 2020, the notional amounts of foreign currency forward contracts related to non-functional currency denominated borrowings were €142 million and £75 million. We 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. The fair values of these short-term derivative instruments are recorded in either Prepaid expenses and other current assets or Other accrued expenses on our Unaudited Condensed Consolidated Balance Sheets. The fair values of these contracts at December 31, 2020, along with the effect on our results of operations during the three and six months ended June 30, 2021 and 2020, were immaterial. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures | 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 six months ended June 30, 2021, 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 for 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 June 30, 2021 and December 31, 2020 (in thousands): Balance as of June 30, 2021 Fair Value Measurements as of June 30, 2021 Level 1 Level 2 Level 3 Assets: Cash surrender value of life insurance $ 86,706 $ — $ 86,706 $ — Total Assets $ 86,706 $ — $ 86,706 $ — Liabilities: Contingent consideration liabilities $ 3,056 $ — $ — $ 3,056 Deferred compensation liabilities 86,865 — 86,865 — Total Liabilities $ 89,921 $ — $ 86,865 $ 3,056 Balance as of December 31, 2020 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Assets: Cash surrender value of life insurance $ 72,250 $ — $ 72,250 $ — Total Assets $ 72,250 $ — $ 72,250 $ — Liabilities: Contingent consideration liabilities $ 13,263 $ — $ — $ 13,263 Interest rate swaps 899 — 899 — Deferred compensation liabilities 76,240 — 76,240 — Cross currency swap agreements 56,328 — 56,328 — Foreign currency forward contracts 5,190 — 5,190 — Total Liabilities $ 151,920 $ — $ 138,657 $ 13,263 The cash surrender value of life insurance is included in Other noncurrent assets on our Unaudited Condensed Consolidated Balance Sheets. The current portion of contingent consideration liabilities is included in Other current liabilities on our Unaudited Condensed Consolidated Balance Sheets; the noncurrent portion of deferred compensation liabilities and contingent consideration liabilities 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, cross currency swap agreements, and foreign currency forward contracts is presented in Note 10, "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. We also have equity investments recorded in Other noncurrent assets that are reported at fair value. We have used net asset value as a practical expedient to value these equity investments and thus they are excluded from the fair value hierarchy disclosure. 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 June 30, 2021 and December 31, 2020, the fair value of our credit agreement borrowings reasonably approximated the carrying values of $1.4 billion and $967 million, respectively. As of June 30, 2021 and December 31, 2020, there were no outstanding borrowings under the receivables facility. As of June 30, 2021 and December 31, 2020, the fair values of the Euro Notes (2024) were approximately $642 million and $662 million, respectively, compared to carrying values of $593 million and $611 million, respectively. As of June 30, 2021 and December 31, 2020, the fair values of the Euro Notes (2026/28) were $319 million and $1.3 billion, respectively, compared to carrying values of $296 million and $1.2 billion, respectively. |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 and December 31, 2020, the aggregate funded status of the defined benefit plans was a liability of $148 million and $153 million , respectively, and is reported in Other noncurrent liabilities and Accrued payroll-related liabilities on our Unaudited Condensed Consolidated Balance Sheets. Net periodic benefit cost for our defined benefit plans included the following components for the three and six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Service cost $ 933 $ 856 $ 1,828 $ 1,526 Interest cost 353 731 695 1,449 Expected return on plan assets (423) (662) (846) (1,140) Amortization of actuarial loss 437 555 874 669 Settlement loss (1) — 2,100 — 2,100 Net periodic benefit cost $ 1,300 $ 3,580 $ 2,551 $ 4,604 (1) Related to the partial settlement of a U.S. plan in 2020. |
Income Taxes (Notes)
Income Taxes (Notes) | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021 was 26.3%, compared to 27.7% for the comparable prior year period. The lower estimated annual effective tax rate for 2021 is primarily attributable to the higher forecasted 2021 results of operations, as compared to the forecasts available during the comparable period in 2020, when |
Segment and Geographic Informat
Segment and Geographic Information | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Revenue: Third Party $ 1,327,050 $ 1,576,661 $ 531,403 $ — $ 3,435,114 Intersegment 644 — 876 (1,520) — Total segment revenue $ 1,327,694 $ 1,576,661 $ 532,279 $ (1,520) $ 3,435,114 Segment EBITDA $ 276,186 $ 168,106 $ 79,399 $ — $ 523,691 Depreciation and amortization (1) 23,721 39,984 7,038 — 70,743 Three Months Ended June 30, 2020 Revenue: Third Party $ 1,011,136 $ 1,211,185 $ 404,002 $ — $ 2,626,323 Intersegment 259 — 872 (1,131) — Total segment revenue $ 1,011,395 $ 1,211,185 $ 404,874 $ (1,131) $ 2,626,323 Segment EBITDA $ 149,554 $ 89,387 $ 52,233 $ — $ 291,174 Depreciation and amortization (1) 25,050 40,493 7,387 — 72,930 North America Europe Specialty Eliminations Consolidated Six Months Ended June 30, 2021 Revenue: Third Party $ 2,576,424 $ 3,040,114 $ 989,362 $ — $ 6,605,900 Intersegment 963 — 1,856 (2,819) — Total segment revenue $ 2,577,387 $ 3,040,114 $ 991,218 $ (2,819) $ 6,605,900 Segment EBITDA $ 525,353 $ 309,064 $ 140,881 $ — $ 975,298 Depreciation and amortization (1) 47,981 80,242 14,117 — 142,340 Six Months Ended June 30, 2020 Revenue: Third Party $ 2,301,071 $ 2,574,779 $ 751,408 $ — $ 5,627,258 Intersegment 519 — 2,048 (2,567) — Total segment revenue $ 2,301,590 $ 2,574,779 $ 753,456 $ (2,567) $ 5,627,258 Segment EBITDA $ 360,992 $ 167,649 $ 84,465 $ — $ 613,106 Depreciation and amortization (1) 48,198 81,588 14,523 — 144,309 (1) Amounts presented include depreciation and amortization expense recorded within Cost of goods sold and Restructuring and acquisition related expenses. The key measure of segment profit or loss reviewed by our chief operating decision maker, our Chief Executive Officer, is Segment EBITDA. We use Segment EBITDA to compare profitability among our segments and evaluate business strategies. 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; equity investment mark to market adjustments; and impairment charges. EBITDA, which is the basis for Segment EBITDA, is calculated as net income attributable to LKQ stockholders 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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net income $ 305,008 $ 118,770 $ 571,340 $ 264,749 Less: net income (loss) attributable to continuing noncontrolling interest 384 (22) 803 718 Less: net income attributable to discontinued noncontrolling interest — — — 103 Net income attributable to LKQ stockholders 304,624 118,792 570,537 263,928 Subtract: Net income (loss) from discontinued operations — 277 — (638) Net income attributable to discontinued noncontrolling interest — — — (103) Net income from continuing operations attributable to LKQ stockholders 304,624 118,515 570,537 264,669 Add: Depreciation and amortization 64,896 65,747 130,697 131,242 Depreciation and amortization - cost of goods sold 5,649 4,010 11,264 9,095 Depreciation and amortization - restructuring expenses (1) 198 3,173 379 3,972 Interest expense, net of interest income 16,172 25,616 40,351 51,547 Loss on debt extinguishment 23,564 — 23,564 12,751 Provision for income taxes 107,719 41,869 200,688 102,280 EBITDA 522,822 258,930 977,480 575,556 Subtract: Equity in earnings (losses) of unconsolidated subsidiaries (2) 3,478 (2,649) 9,297 (2,133) Equity investment mark to market adjustments 1,061 — 5,800 — Add: Restructuring and acquisition related expenses (1) 4,871 21,777 12,575 27,948 Restructuring expenses - cost of goods sold — 5,665 (163) 5,661 (Gain) loss on disposal of businesses and impairment of net assets held for sale (597) 2,485 (582) 2,236 Change in fair value of contingent consideration liabilities 1,134 (332) 1,085 (428) Segment EBITDA $ 523,691 $ 291,174 $ 975,298 $ 613,106 (1) The sum of these two captions represents the total amount that is reported in Restructuring and acquisition related expenses in our Unaudited Condensed Consolidated Statements of Income. Refer to Note 5, "Restructuring and Acquisition Related Expenses," for further information. (2) Refer to "Investments in Unconsolidated Subsidiaries" in Note 3, "Financial Statement Information," for further information. The following table presents capital expenditures by reportable segment (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Capital Expenditures North America $ 16,817 $ 10,892 $ 30,152 $ 40,213 Europe 21,203 19,502 47,501 32,550 Specialty 8,055 2,369 10,201 4,538 Total capital expenditures $ 46,075 $ 32,763 $ 87,854 $ 77,301 The following table presents assets by reportable segment (in thousands): June 30, December 31, 2021 2020 Receivables, net North America $ 403,761 $ 386,289 Europe 669,432 598,615 Specialty 152,542 88,485 Total receivables, net 1,225,735 1,073,389 Inventories North America 785,064 810,798 Europe 1,286,067 1,302,649 Specialty 323,016 301,165 Total inventories 2,394,147 2,414,612 Property, plant and equipment, net North America 568,905 583,985 Europe 554,321 583,439 Specialty 83,930 81,279 Total property, plant and equipment, net 1,207,156 1,248,703 Operating lease assets, net North America 772,614 755,430 Europe 521,703 520,131 Specialty 73,826 77,563 Total operating lease assets, net 1,368,143 1,353,124 Equity method investments North America 21,255 18,676 Europe 147,212 136,548 Total equity method investments 168,467 155,224 Other unallocated assets 6,074,411 6,115,481 Total assets $ 12,438,059 $ 12,360,533 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, Austria, Slovakia, Poland, and other European countries. Our operations in other countries include wholesale operations in Canada, remanufacturing 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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue United States $ 1,749,496 $ 1,330,543 $ 3,354,929 $ 2,864,489 United Kingdom 421,314 278,419 824,752 669,038 Germany 418,817 359,134 806,693 733,686 Other countries 845,487 658,227 1,619,526 1,360,045 Total revenue $ 3,435,114 $ 2,626,323 $ 6,605,900 $ 5,627,258 The following table sets forth our tangible long-lived assets by geographic area (in thousands): June 30, December 31, 2021 2020 Long-lived assets United States $ 1,414,705 $ 1,419,113 Germany 347,531 360,184 United Kingdom 304,395 315,333 Other countries 508,668 507,197 Total long-lived assets $ 2,575,299 $ 2,601,827 |
Financial Statement Informati_2
Financial Statement Information Receivables (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Government Assistance | Government Assistance During the three and six months ended June 30, 2021 and 2020, we recorded financial assistance from foreign governments, primarily in the form of grants, as credits in the following amounts (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Cost of goods sold $ 219 $ 469 $ 363 $ 469 Selling, general and administrative expenses 5,393 32,174 14,238 32,174 Total government assistance $ 5,612 $ 32,643 $ 14,601 $ 32,643 For the six months ended June 30, 2021 and 2020, we received grants from European governments of $11 million and $28 million, respectively, with the remaining amounts related to Canada. |
Equity Method Investments [Policy Text Block] | Investments in Unconsolidated Subsidiaries Our investment in unconsolidated subsidiaries was $168 million and $155 million as of June 30, 2021 and December 31, 2020, respectively. Europe Segment Our investment in unconsolidated subsidiaries in Europe was $147 million and $137 million as of June 30, 2021 and December 31, 2020, respectively. We recorded equity in earnings of $3 million and $9 million during the three and six months ended June 30, 2021, respectively, and equity in losses of an immaterial amount and equity in earnings of $1 million during the three and six months ended June 30, 2020, respectively, mainly related to our investment in Mekonomen AB ("Mekonomen"). We are accounting for our 26.6% equity 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 June 30, 2021, our share of the book value of Mekonomen's net assets exceeded the book value of our investment in Mekonomen by $7 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. Mekonomen announced in March 2020 and February 2021, respectively, that the Mekonomen Board of Directors proposed no dividend payment in 2020 or 2021. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at June 30, 2021 was $245 million (using the Mekonomen share price of SEK 141 as of June 30, 2021) compared to a carrying value of $137 million. North America Segment Our investment in unconsolidated subsidiaries in the North America segment was $21 million and $19 million as of June 30, 2021 and December 31, 2020, respectively. We recorded equity in earnings of an immaterial amount for each of the three and six months ended June 30, 2021, and equity in losses of $3 million during both the three and six months ended June 30, 2020, related to our North America equity method investments. |
Receivable | Allowance for Credit Losses Receivables, net are reported net of an allowance for credit losses. Management evaluates the aging of customer receivable balances, the financial condition of our customers, historical trends, and macroeconomic factors to estimate the |
Financial Statement Informati_3
Financial Statement Information Inventories (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Inventory [Abstract] | |
Inventory, Policy [Policy Text Block] | Inventories Inventories consist of the following (in thousands): June 30, December 31, 2021 2020 Aftermarket and refurbished products $ 1,984,301 $ 2,025,002 Salvage and remanufactured products 382,565 368,815 Manufactured products 27,281 20,795 Total inventories $ 2,394,147 $ 2,414,612 Aftermarket and refurbished products and salvage and remanufactured products are primarily composed of finished goods. As of June 30, 2021, manufactured products inventory was composed of $21 million of raw materials, $4 million of work in process, and $2 million of finished goods. As of December 31, 2020, manufactured products inventory was composed of $16 million of raw materials, $3 million of work in process, and $2 million of finished goods. |
Financial Statement Informati_4
Financial Statement Information Investments in Unconsolidated Subsidiaries (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Investments in Unconsolidated Subsidiaries [Abstract] | |
Equity Method Investments [Policy Text Block] | Investments in Unconsolidated Subsidiaries Our investment in unconsolidated subsidiaries was $168 million and $155 million as of June 30, 2021 and December 31, 2020, respectively. Europe Segment Our investment in unconsolidated subsidiaries in Europe was $147 million and $137 million as of June 30, 2021 and December 31, 2020, respectively. We recorded equity in earnings of $3 million and $9 million during the three and six months ended June 30, 2021, respectively, and equity in losses of an immaterial amount and equity in earnings of $1 million during the three and six months ended June 30, 2020, respectively, mainly related to our investment in Mekonomen AB ("Mekonomen"). We are accounting for our 26.6% equity 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 June 30, 2021, our share of the book value of Mekonomen's net assets exceeded the book value of our investment in Mekonomen by $7 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. Mekonomen announced in March 2020 and February 2021, respectively, that the Mekonomen Board of Directors proposed no dividend payment in 2020 or 2021. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at June 30, 2021 was $245 million (using the Mekonomen share price of SEK 141 as of June 30, 2021) compared to a carrying value of $137 million. North America Segment Our investment in unconsolidated subsidiaries in the North America segment was $21 million and $19 million as of June 30, 2021 and December 31, 2020, respectively. We recorded equity in earnings of an immaterial amount for each of the three and six months ended June 30, 2021, and equity in losses of $3 million during both the three and six months ended June 30, 2020, related to our North America equity method investments. |
Financial Statement Informati_5
Financial Statement Information Warranty Reserve (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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 or four 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, 2020 $ 27,914 Warranty expense 37,117 Warranty claims (35,238) Balance as of June 30, 2021 $ 29,793 |
Financial Statement Informati_6
Financial Statement Information Litigation and Related Contingencies (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
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_7
Financial Statement Information Treasury Stock (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Treasury Stock [Abstract] | |
Stockholders' Equity, Policy [Policy Text Block] | Stockholders' Equity Treasury Stock As of June 30, 2021, our Board of Directors had authorized a stock repurchase program under which we may purchase up to $1.0 billion of our common stock from time to time through October 25, 2022. 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. Repurchased shares are accounted for as treasury stock using the cost method. During the three and six months ended June 30, 2021, we repurchased 6.2 million and 7.7 million shares of common stock, respectively, for an aggregate price of $304 million and $361 million, respectively, of which $17 million settled for cash in July. During the six months ended June 30, 2020, we repurchased 3.3 million shares of common stock for an aggregate price of $88 million; we did not repurchase any shares during the three months ended June 30, 2020. As of June 30, 2021, there was $170 million of remaining capacity under our repurchase program. Subsequent to quarter end through July 23, 2021, we repurchased an additional 2.0 million shares for $100 million. On July 28, 2021, our Board of Directors authorized a $1.0 billion increase and a two year extension to our stock repurchase program, raising the aggregate authorization under the program to $2.0 billion and authorizing repurchases through October 25, 2024. Noncontrolling Interest In February 2020, as part of the sale of Stahlgruber's Czech Republic business, we divested the noncontrolling interest of the business, which resulted in a net decrease to Noncontrolling interest of $11 million in our unaudited condensed consolidated financial statements as of March 31, 2020. See Note 2, "Discontinued Operations," for further information. |
Financial Statement Informati_8
Financial Statement Information Recent Accounting Pronouncements (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Recent Accounting Pronouncements Policy [Policy Text Block] | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In the first quarter of 2021, we adopted ASU No. 2019-12, "Income Taxes" (Topic 740) ("ASU 2019-12"), which simplifies the accounting for income taxes and adds guidance to reduce complexity in certain areas. We adopted the standard in the first quarter using the prospective approach. The adoption of this accounting standard did not have a material impact on our unaudited condensed consolidated financial statements. Recently Issued Accounting Pronouncements In March 2020, the FASB issued ASU No. 2020-04, "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting" ("ASU 2020-04"), which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. ASU 2020-04 provides optional expedients and exceptions for applying generally accepted accounting principles to transactions affected by reference rate reform if certain criteria are met. These transactions include contract modifications, hedging relationships, and sale or transfer of debt securities classified as held-to-maturity. Entities may apply the provisions of the new standard as of the beginning of the reporting period when the election is made (i.e., as early as the first quarter of 2020). Unlike other topics, the provisions of this update are only available until December 31, 2022. We are currently evaluating the impact of this standard on our consolidated financial statements and related disclosures, and we have not yet elected an adoption date. |
Financial Statement Informati_9
Financial Statement Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of the following (in thousands): June 30, December 31, 2021 2020 Aftermarket and refurbished products $ 1,984,301 $ 2,025,002 Salvage and remanufactured products 382,565 368,815 Manufactured products 27,281 20,795 Total inventories $ 2,394,147 $ 2,414,612 |
Schedule of Product Warranty Liability [Table Text Block] | The changes in the warranty reserve are as follows (in thousands): Balance as of December 31, 2020 $ 27,914 Warranty expense 37,117 Warranty claims (35,238) Balance as of June 30, 2021 $ 29,793 |
Government Assistance | During the three and six months ended June 30, 2021 and 2020, we recorded financial assistance from foreign governments, primarily in the form of grants, as credits in the following amounts (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Cost of goods sold $ 219 $ 469 $ 363 $ 469 Selling, general and administrative expenses 5,393 32,174 14,238 32,174 Total government assistance $ 5,612 $ 32,643 $ 14,601 $ 32,643 |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 North America $ 1,077,171 $ 892,826 $ 2,095,608 $ 2,000,168 Europe 1,569,697 1,206,330 3,025,067 2,564,299 Specialty 531,403 404,002 989,362 751,408 Parts and services 3,178,271 2,503,158 6,110,037 5,315,875 Other 256,843 123,165 495,863 311,383 Total revenue $ 3,435,114 $ 2,626,323 $ 6,605,900 $ 5,627,258 |
Revenue Recognition Product War
Revenue Recognition Product Warranty Liability (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021 $ 25,622 Additional warranty revenue deferred 30,962 Warranty revenue recognized (26,966) Balance as of June 30, 2021 $ 29,618 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021: Number Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2021 1,479,672 $ 31.71 Granted (2) 725,478 $ 39.02 Vested (452,189) $ 32.10 Forfeited / Canceled (29,950) $ 34.06 Unvested as of June 30, 2021 1,723,011 $ 34.55 Expected to vest after June 30, 2021 1,539,272 $ 34.78 3.1 $ 75,763 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes activity related to our PSUs under the Equity Incentive Plan for the six months ended June 30, 2021: Number Weighted Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2021 291,601 $ 29.98 Granted (2) 121,810 $ 38.50 Forfeited / Canceled (1,166) $ 30.26 Unvested as of June 30, 2021 412,245 $ 32.50 Expected to vest after June 30, 2021 412,245 $ 32.50 1.4 $ 20,291 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Earnings Per Share, Basic and Diluted (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Income from continuing operations $ 305,008 $ 118,493 $ 571,340 $ 265,387 Denominator for basic earnings per share—Weighted-average shares outstanding 300,581 304,001 301,805 305,123 Effect of dilutive securities: RSUs 712 189 670 352 PSUs 174 — 134 — Stock options — — — 2 Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding 301,467 304,190 302,609 305,477 Basic earnings per share from continuing operations $ 1.01 $ 0.39 $ 1.89 $ 0.87 Diluted earnings per share from continuing operations (1) $ 1.01 $ 0.39 $ 1.89 $ 0.87 |
Earnings Per Share Schedule o_2
Earnings Per Share Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Antidilutive securities: RSUs — 1,444 59 913 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, Classification 2021 2020 2021 2020 Unrealized (losses) gains on interest rate swaps Interest expense, net of interest income $ (495) $ (1,769) $ (1,188) $ 1,527 Unrealized gains on cross currency swaps Interest expense, net of interest income — 2,796 539 5,347 Unrealized (losses) gains on cross currency swaps (1) Other income, net — (8,788) 1,973 (928) Unrealized (losses) gains on foreign currency forward contracts (1) Other income, net (90) — 434 — Total $ (585) $ (7,761) $ 1,758 $ 5,946 (1) The amounts reclassified to Other income, net in our Unaudited Condensed Consolidated Statements of Income offset the impact of the remeasurement of the underlying transactions. |
Accumulated Other Comprehensive Income (Loss) | The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands): Three Months Ended June 30, 2021 Foreign Unrealized (Loss) Gain Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated BALANCE, April 1, 2021 $ (81,698) $ (310) $ (32,654) $ (11,460) $ (126,122) Pretax income (loss) 21,864 (296) — — 21,568 Income tax effect — 59 — — 59 Reclassification of unrealized loss — 585 437 — 1,022 Reclassification of deferred income taxes — (137) (124) — (261) Other comprehensive income from unconsolidated subsidiaries — — — 2,644 2,644 BALANCE, June 30, 2021 $ (59,834) $ (99) $ (32,341) $ (8,816) $ (101,090) Three Months Ended June 30, 2020 Foreign Unrealized (Loss) Gain Unrealized (Loss) Gain Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries Accumulated BALANCE, April 1, 2020 $ (274,858) $ (1,963) $ (31,814) $ (5,268) $ (313,903) Pretax income (loss) 30,663 (7,807) — — 22,856 Income tax effect — 1,842 — — 1,842 Reclassification of unrealized loss — 7,761 2,655 — 10,416 Reclassification of deferred income taxes — (1,827) (780) — (2,607) Disposal of business 671 — — — 671 Other comprehensive income from unconsolidated subsidiaries — — — 962 962 BALANCE, June 30, 2020 $ (243,524) $ (1,994) $ (29,939) $ (4,306) $ (279,763) Six Months Ended June 30, 2021 Foreign Unrealized (Loss) Gain Unrealized (Loss) Gain Other Comprehensive Loss from Unconsolidated Subsidiaries Accumulated BALANCE, January 1, 2021 $ (57,126) $ (968) $ (32,967) $ (7,948) $ (99,009) Pretax (loss) income (2,708) 2,823 — — 115 Income tax effect — (677) — — (677) Reclassification of unrealized (gain) loss — (1,758) 874 — (884) Reclassification of deferred income taxes — 481 (248) — 233 Other comprehensive loss from unconsolidated subsidiaries — — — (868) (868) BALANCE, June 30, 2021 $ (59,834) $ (99) $ (32,341) $ (8,816) $ (101,090) Six Months Ended June 30, 2020 Foreign Unrealized Gain (Loss) Unrealized (Loss) Gain Other Comprehensive Loss from Unconsolidated Subsidiaries Accumulated BALANCE, January 1, 2020 $ (170,893) $ 5,358 $ (31,934) $ (3,416) $ (200,885) Pretax loss (73,397) (3,625) — — (77,022) Income tax effect — 858 — — 858 Reclassification of unrealized (gain) loss — (5,946) 2,769 — (3,177) Reclassification of deferred income taxes — 1,361 (774) — 587 Disposal of business 766 — — — 766 Other comprehensive loss from unconsolidated subsidiaries — — — (890) (890) BALANCE, June 30, 2020 $ (243,524) $ (1,994) $ (29,939) $ (4,306) $ (279,763) |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Obligations | Long-term obligations consist of the following (in thousands): June 30, December 31, 2021 2020 Senior secured credit agreement: Term loans payable $ — $ 323,750 Revolving credit facilities 1,434,898 642,958 Euro Notes (2024) 592,900 610,800 Euro Notes (2026/28) 296,450 1,221,600 Receivables securitization facility — — Notes payable through October 2030 at weighted average interest rates of 3.3% and 3.3%, respectively 22,605 24,526 Finance lease obligations at weighted average interest rates of 3.5% and 3.5%, respectively 53,841 57,336 Other debt at weighted average interest rates of 0.8% and 1.2%, respectively 65,446 15,706 Total debt 2,466,140 2,896,676 Less: long-term debt issuance costs (14,324) (25,225) Less: current debt issuance costs (306) (313) Total debt, net of debt issuance costs 2,451,510 2,871,138 Less: current maturities, net of debt issuance costs (90,825) (58,497) Long term debt, net of debt issuance costs $ 2,360,685 $ 2,812,641 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of June 30, 2021, we held no cash flow hedges, and as of December 31, 2020, we held cash flow hedges with the following notional amounts and fair values (in thousands): December 31, 2020 Interest rate swap agreements USD denominated $ 480,000 Cross currency swap agreements Euro denominated € 340,000 Foreign currency forward contracts SEK denominated kr 227,000 |
Fair Value Option, Disclosures | Other Accrued Expenses Fair Value at December 31, 2020 Interest rate swap agreements $ 899 Cross currency swap agreements 56,328 Foreign currency forward contracts 1,350 Total cash flow hedges $ 58,577 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring 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 June 30, 2021 and December 31, 2020 (in thousands): Balance as of June 30, 2021 Fair Value Measurements as of June 30, 2021 Level 1 Level 2 Level 3 Assets: Cash surrender value of life insurance $ 86,706 $ — $ 86,706 $ — Total Assets $ 86,706 $ — $ 86,706 $ — Liabilities: Contingent consideration liabilities $ 3,056 $ — $ — $ 3,056 Deferred compensation liabilities 86,865 — 86,865 — Total Liabilities $ 89,921 $ — $ 86,865 $ 3,056 Balance as of December 31, 2020 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Assets: Cash surrender value of life insurance $ 72,250 $ — $ 72,250 $ — Total Assets $ 72,250 $ — $ 72,250 $ — Liabilities: Contingent consideration liabilities $ 13,263 $ — $ — $ 13,263 Interest rate swaps 899 — 899 — Deferred compensation liabilities 76,240 — 76,240 — Cross currency swap agreements 56,328 — 56,328 — Foreign currency forward contracts 5,190 — 5,190 — Total Liabilities $ 151,920 $ — $ 138,657 $ 13,263 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021 and 2020 (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Service cost $ 933 $ 856 $ 1,828 $ 1,526 Interest cost 353 731 695 1,449 Expected return on plan assets (423) (662) (846) (1,140) Amortization of actuarial loss 437 555 874 669 Settlement loss (1) — 2,100 — 2,100 Net periodic benefit cost $ 1,300 $ 3,580 $ 2,551 $ 4,604 (1) Related to the partial settlement of a U.S. plan in 2020. |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021 Revenue: Third Party $ 1,327,050 $ 1,576,661 $ 531,403 $ — $ 3,435,114 Intersegment 644 — 876 (1,520) — Total segment revenue $ 1,327,694 $ 1,576,661 $ 532,279 $ (1,520) $ 3,435,114 Segment EBITDA $ 276,186 $ 168,106 $ 79,399 $ — $ 523,691 Depreciation and amortization (1) 23,721 39,984 7,038 — 70,743 Three Months Ended June 30, 2020 Revenue: Third Party $ 1,011,136 $ 1,211,185 $ 404,002 $ — $ 2,626,323 Intersegment 259 — 872 (1,131) — Total segment revenue $ 1,011,395 $ 1,211,185 $ 404,874 $ (1,131) $ 2,626,323 Segment EBITDA $ 149,554 $ 89,387 $ 52,233 $ — $ 291,174 Depreciation and amortization (1) 25,050 40,493 7,387 — 72,930 North America Europe Specialty Eliminations Consolidated Six Months Ended June 30, 2021 Revenue: Third Party $ 2,576,424 $ 3,040,114 $ 989,362 $ — $ 6,605,900 Intersegment 963 — 1,856 (2,819) — Total segment revenue $ 2,577,387 $ 3,040,114 $ 991,218 $ (2,819) $ 6,605,900 Segment EBITDA $ 525,353 $ 309,064 $ 140,881 $ — $ 975,298 Depreciation and amortization (1) 47,981 80,242 14,117 — 142,340 Six Months Ended June 30, 2020 Revenue: Third Party $ 2,301,071 $ 2,574,779 $ 751,408 $ — $ 5,627,258 Intersegment 519 — 2,048 (2,567) — Total segment revenue $ 2,301,590 $ 2,574,779 $ 753,456 $ (2,567) $ 5,627,258 Segment EBITDA $ 360,992 $ 167,649 $ 84,465 $ — $ 613,106 Depreciation and amortization (1) 48,198 81,588 14,523 — 144,309 |
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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Net income $ 305,008 $ 118,770 $ 571,340 $ 264,749 Less: net income (loss) attributable to continuing noncontrolling interest 384 (22) 803 718 Less: net income attributable to discontinued noncontrolling interest — — — 103 Net income attributable to LKQ stockholders 304,624 118,792 570,537 263,928 Subtract: Net income (loss) from discontinued operations — 277 — (638) Net income attributable to discontinued noncontrolling interest — — — (103) Net income from continuing operations attributable to LKQ stockholders 304,624 118,515 570,537 264,669 Add: Depreciation and amortization 64,896 65,747 130,697 131,242 Depreciation and amortization - cost of goods sold 5,649 4,010 11,264 9,095 Depreciation and amortization - restructuring expenses (1) 198 3,173 379 3,972 Interest expense, net of interest income 16,172 25,616 40,351 51,547 Loss on debt extinguishment 23,564 — 23,564 12,751 Provision for income taxes 107,719 41,869 200,688 102,280 EBITDA 522,822 258,930 977,480 575,556 Subtract: Equity in earnings (losses) of unconsolidated subsidiaries (2) 3,478 (2,649) 9,297 (2,133) Equity investment mark to market adjustments 1,061 — 5,800 — Add: Restructuring and acquisition related expenses (1) 4,871 21,777 12,575 27,948 Restructuring expenses - cost of goods sold — 5,665 (163) 5,661 (Gain) loss on disposal of businesses and impairment of net assets held for sale (597) 2,485 (582) 2,236 Change in fair value of contingent consideration liabilities 1,134 (332) 1,085 (428) Segment EBITDA $ 523,691 $ 291,174 $ 975,298 $ 613,106 |
Schedule Of Capital Expenditures By Reportable Segment | The following table presents capital expenditures by reportable segment (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Capital Expenditures North America $ 16,817 $ 10,892 $ 30,152 $ 40,213 Europe 21,203 19,502 47,501 32,550 Specialty 8,055 2,369 10,201 4,538 Total capital expenditures $ 46,075 $ 32,763 $ 87,854 $ 77,301 |
Schedule Of Assets By Reportable Segment | The following table presents assets by reportable segment (in thousands): June 30, December 31, 2021 2020 Receivables, net North America $ 403,761 $ 386,289 Europe 669,432 598,615 Specialty 152,542 88,485 Total receivables, net 1,225,735 1,073,389 Inventories North America 785,064 810,798 Europe 1,286,067 1,302,649 Specialty 323,016 301,165 Total inventories 2,394,147 2,414,612 Property, plant and equipment, net North America 568,905 583,985 Europe 554,321 583,439 Specialty 83,930 81,279 Total property, plant and equipment, net 1,207,156 1,248,703 Operating lease assets, net North America 772,614 755,430 Europe 521,703 520,131 Specialty 73,826 77,563 Total operating lease assets, net 1,368,143 1,353,124 Equity method investments North America 21,255 18,676 Europe 147,212 136,548 Total equity method investments 168,467 155,224 Other unallocated assets 6,074,411 6,115,481 Total assets $ 12,438,059 $ 12,360,533 |
Revenue from External Customers by Geographic Area | The following table sets forth our revenue by geographic area (in thousands): Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 Revenue United States $ 1,749,496 $ 1,330,543 $ 3,354,929 $ 2,864,489 United Kingdom 421,314 278,419 824,752 669,038 Germany 418,817 359,134 806,693 733,686 Other countries 845,487 658,227 1,619,526 1,360,045 Total revenue $ 3,435,114 $ 2,626,323 $ 6,605,900 $ 5,627,258 |
Schedule Of Tangible Long-Lived Assets By Geographic Area | The following table sets forth our tangible long-lived assets by geographic area (in thousands): June 30, December 31, 2021 2020 Long-lived assets United States $ 1,414,705 $ 1,419,113 Germany 347,531 360,184 United Kingdom 304,395 315,333 Other countries 508,668 507,197 Total long-lived assets $ 2,575,299 $ 2,601,827 |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Thousands, € in Millions | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Disposition of subsidiary with noncontrolling interests(1) | $ | $ 11,404 | |||
Notes receivable and contingent consideration receivable acquired in connection with disposal of business | $ | $ 0 | $ 8,549 | ||
Stahlgruber Czech Republic Wholesale Business [Member] | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 48.20% | 48.20% | ||
Payments to Acquire Additional Interest in Subsidiaries | € 8 | |||
Disposition of subsidiary with noncontrolling interests(1) | $ | $ 11,000 | |||
Note issued to acquire noncontrolling interest | € 4 | |||
Percentage of Business Sold | 100.00% | 100.00% | ||
Notes receivable and contingent consideration receivable acquired in connection with disposal of business | € 7 | |||
Proceeds from disposal of businesses, net of cash sold | € 14 |
Financial Statement Informat_10
Financial Statement Information (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||
Jul. 23, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Inventory [Line Items] | ||||||
Inventories | $ 2,394,147 | $ 2,394,147 | $ 2,414,612 | |||
Accounts Receivable, Allowance for Credit Loss, Current | 69,000 | 69,000 | 70,000 | |||
Accounts Receivable, Credit Loss Expense (Reversal) | 1,000 | $ 14,000 | 4,000 | $ 24,000 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Accounts Receivable, Credit Loss Expense (Reversal) | 1,000 | $ 14,000 | 4,000 | 24,000 | ||
Cumulative Effect on Retained Earnings, before Tax | (2,519) | |||||
Accounts Receivable, Allowance for Credit Loss, Current | 69,000 | 69,000 | $ 70,000 | |||
Leased assets obtained in exchange for operating lease liabilities | 137,129 | 90,961 | ||||
Payments for Repurchase of Common Stock | $ 100,000 | 343,830 | 88,006 | |||
Amount that fair value exceeds carrying value | 30.00% | |||||
Payments for Repurchase of Common Stock | $ 100,000 | 343,830 | 88,006 | |||
Leased assets obtained in exchange for operating lease liabilities | 137,129 | 90,961 | ||||
Treasury Stock, Common [Member] | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Payments for Repurchase of Common Stock | 304,000 | 361,000 | ||||
Payments for Repurchase of Common Stock | 304,000 | 361,000 | ||||
AftermarketAndRefurbishedProducts [Member] | ||||||
Inventory [Line Items] | ||||||
Inventories | 1,984,301 | 1,984,301 | $ 2,025,002 | |||
SalvageAndRemanufacturedProducts [Member] | ||||||
Inventory [Line Items] | ||||||
Inventories | 382,565 | 382,565 | 368,815 | |||
ManufacturedProducts [Member] | ||||||
Inventory [Line Items] | ||||||
Inventories | 27,281 | 27,281 | 20,795 | |||
Inventory, Raw Materials and Supplies, Gross | 21,000 | 21,000 | 16,000 | |||
Inventory, Work in Process, Gross | 4,000 | 4,000 | 3,000 | |||
Inventory, Finished Goods, Gross | $ 2,000 | $ 2,000 | $ 2,000 | |||
Prior Year Unadjusted Disclosure | ||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||
Leased assets obtained in exchange for operating lease liabilities | 55,000 | |||||
Leased assets obtained in exchange for operating lease liabilities | $ 55,000 |
Financial Statement Informat_11
Financial Statement Information Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Intangible Assets | ||
Amount that fair value exceeds carrying value | 30.00% | |
Goodwill | $ 4,568,087 | $ 4,591,569 |
Financial Statement Informat_12
Financial Statement Information Investments in Unconsolidated Subsidiaries (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021SEK (kr) | Dec. 31, 2020USD ($) | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 168,467 | $ 168,467 | $ 155,224 | ||||
Equity in (losses) earnings of unconsolidated subsidiaries | (3,478) | $ 2,649 | (9,297) | $ 2,133 | |||
(Gain) loss on disposal of businesses and impairment of net assets held for sale | (597) | 2,485 | (582) | 2,236 | |||
Mekonomen [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | 137,000 | 137,000 | |||||
Equity Method Investment, Ownership Percentage | 26.60% | ||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 7,000 | 7,000 | |||||
Share Price of the Equity Method Investment | kr | kr 141 | ||||||
Equity Method Investments, Fair Value Disclosure | 245,000 | 245,000 | |||||
Europe | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | 147,212 | 147,212 | 136,548 | ||||
Equity in (losses) earnings of unconsolidated subsidiaries | 3,000 | 9,000 | 1,000 | ||||
North America | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity method investments | $ 21,255 | $ 21,255 | $ 18,676 | ||||
Equity in (losses) earnings of unconsolidated subsidiaries | $ 3,000 | $ 3,000 |
Financial Statement Informat_13
Financial Statement Information Warranty Reserve (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Warranty Reserve [Abstract] | ||
Standard Product Warranty Accrual | $ 29,793 | $ 27,914 |
Standard Product Warranty Accrual, Increase for Warranties Issued | 37,117 | |
Standard Product Warranty Accrual, Decrease for Payments | $ 35,238 |
Financial Statement Informat_14
Financial Statement Information Treasury Stock (Details) - USD ($) $ in Thousands, shares in Millions | Jul. 02, 2021 | Jul. 23, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jul. 28, 2021 |
Treasury Stock [Abstract] | |||||||
Stock Repurchase Program, Authorized Amount | $ 1,000,000 | $ 1,000,000 | $ 2,000,000 | ||||
Stock Repurchased During Period, Shares | 2 | 6.2 | 7.7 | 3.3 | |||
Payments for Repurchase of Common Stock | $ 100,000 | $ 343,830 | $ 88,006 | ||||
Stock Repurchase Program Remaining Authorized Repurchases, Amount | $ 170,000 | 170,000 | |||||
(Gain) loss on disposal of businesses and impairment of net assets held for sale | $ (597) | $ 2,485 | $ (582) | $ 2,236 | |||
Stock Repurchase Program, Increase In Authorized Amount | $ 1,000,000 | ||||||
Payments for Repurchase of Common Stock, Settled After Period [Domain] | $ 17,000 |
Financial Statement Informat_15
Financial Statement Information Recently Adopted Accounting Pronouncements (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($) | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |
Cumulative Effect on Retained Earnings, before Tax | $ (2,519) |
Financial Statement Informat_16
Financial Statement Information Noncontrolling Interest (Details) | 6 Months Ended | ||||
Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | |
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Decrease from Deconsolidation | $ 11,404,000 | ||||
Redeemable noncontrolling interest | $ 24,077,000 | $ 24,077,000 | $ 24,000,000 | ||
Redeemable NCI, Call Option | 26,000,000 | € 23,000,000 | |||
Reedemable NCI, Put Option | $ 24,000,000 | € 21,000,000 | |||
Noncontrolling Interest | |||||
Noncontrolling Interest [Line Items] | |||||
Noncontrolling Interest, Decrease from Deconsolidation | $ 11,404,000 |
Financial Statement Informat_17
Financial Statement Information Government Assistance (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Government Assistance [Line Items] | ||||
Government Assistance Amount | $ 5,612 | $ 32,643 | $ 14,601 | $ 32,643 |
Europe | ||||
Government Assistance [Line Items] | ||||
Government Assistance Amount | 11,000 | 28,000 | ||
Selling, General and Administrative Expenses [Member] | ||||
Government Assistance [Line Items] | ||||
Government Assistance Amount | 5,393 | 32,174 | 14,238 | $ 32,174 |
cost of goods and services sold [Member] | ||||
Government Assistance [Line Items] | ||||
Government Assistance Amount | $ 219 | $ 469 | $ 363 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Revenue Recognition [Line Items] | |||||
Revenues | $ 3,435,114 | $ 2,626,323 | $ 6,605,900 | $ 5,627,258 | |
Deferred Service-Type Warranty Revenue | 29,618 | 29,618 | $ 25,622 | ||
Deferred Service-Type Revenue, Additions | 30,962 | ||||
Deferred Service-Type Revenue Recognized | (26,966) | ||||
Revenue, Variable Consideration Reserve | 102,000 | 102,000 | 127,000 | ||
Contract with Customer, Right to Recover Product | 59,000 | 59,000 | 57,000 | ||
Contract with Customer, Refund Liability | 106,000 | 106,000 | $ 102,000 | ||
Specialty [Member] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 532,279 | 404,874 | 991,218 | 753,456 | |
North America | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 1,327,694 | 1,011,395 | 2,577,387 | 2,301,590 | |
Europe | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 1,576,661 | 1,211,185 | 3,040,114 | 2,574,779 | |
Parts and Services [Domain] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 3,178,271 | 2,503,158 | 6,110,037 | 5,315,875 | |
Parts and Services [Domain] | Specialty [Member] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 531,403 | 404,002 | 989,362 | 751,408 | |
Parts and Services [Domain] | North America | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 1,077,171 | 892,826 | 2,095,608 | 2,000,168 | |
Parts and Services [Domain] | Europe | |||||
Revenue Recognition [Line Items] | |||||
Revenues | 1,569,697 | 1,206,330 | 3,025,067 | 2,564,299 | |
Other Revenue [Member] | |||||
Revenue Recognition [Line Items] | |||||
Revenues | $ 256,843 | $ 123,165 | $ 495,863 | $ 311,383 |
Revenue Recognition Movement in
Revenue Recognition Movement in Standard Product Warranty Accrual (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Product Warranty Liability [Line Items] | ||
Contract with Customer, Right to Recover Product | $ 59,000 | $ 57,000 |
Contract with Customer, Refund Liability | 106,000 | 102,000 |
Revenue, Variable Consideration Reserve | 102,000 | 127,000 |
Deferred Service-Type Warranty Revenue | 29,618 | $ 25,622 |
Deferred Revenue, Additions | 30,962 | |
Deferred Revenue, Revenue Recognized | $ 26,966 | |
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 |
Restructuring and Acquisition_2
Restructuring and Acquisition Related Expenses (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | $ (4) | $ (5) | |||||
2020 Global Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | $ (4) | (25) | (6) | $ (27) | |||
Restructuring Reserve | 17 | 17 | $ 21 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 3 | ||||||
2020 Global Restructuring Program [Member] | Employee-related liabilities, current | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Reserve | 3 | 3 | 4 | ||||
2020 Global Restructuring Program [Member] | Operating Lease, Liability | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Reserve | 13 | 13 | $ 17 | ||||
2020 Global Restructuring Program [Member] | Maximum | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 75 | 75 | |||||
2020 Global Restructuring Program [Member] | Minimum [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 65 | 65 | |||||
2019 Global Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | $ (2) | $ (5) | |||||
Restructuring and Related Cost, Expected Cost | 46 | 46 | |||||
1 LKQ Europe Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring Costs | (5) | ||||||
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 | |||||
Specialty [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost Remaining | $ 5 | ||||||
Specialty [Member] | 2020 Global Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 2 | 2 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 1 | 1 | |||||
Specialty [Member] | 2019 Global Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 1 | 1 | |||||
Europe | 2020 Global Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 36 | 36 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 26 | 26 | |||||
Europe | 2019 Global Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 31 | 31 | |||||
North America | 2020 Global Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | 31 | 31 | |||||
Restructuring and Related Cost, Cost Incurred to Date | 28 | 28 | |||||
North America | 2019 Global Restructuring Program [Member] | |||||||
Restructuring Cost and Reserve [Line Items] | |||||||
Restructuring and Related Cost, Expected Cost | $ 14 | $ 14 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 9,000 | $ 16,793 | $ 15,763 | |
Stock Options [Abstract] | ||||
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 58,000 | $ 58,000 | ||
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 | 412,245 | 412,245 | 291,601 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 32.50 | $ 32.50 | $ 29.98 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 38.50 | $ 31.85 | ||
RSUs [Abstract] | ||||
RSUs granted, shares | 121,810 | |||
Stock Options [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Number | 412,245 | 412,245 | ||
lkq_expected_to_vest_other_than_options_weighted_average_per_share | $ 32.50 | $ 32.50 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 1 year 4 months 24 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 20,291 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (1,166) | |||
RSUs forfeited/canceled, weighted average grant date fair value | $ 30.26 | |||
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 | 1,723,011 | 1,723,011 | 1,479,672 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value | $ 34.55 | $ 34.55 | $ 31.71 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 39.02 | $ 31.71 | ||
RSUs [Abstract] | ||||
RSUs granted, shares | 725,478 | |||
Fair value of RSUs vested during the period | $ 19,000 | |||
Stock Options [Abstract] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Number | 1,539,272 | 1,539,272 | ||
lkq_expected_to_vest_other_than_options_weighted_average_per_share | $ 34.78 | $ 34.78 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 3 years 1 month 6 days | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 75,763 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | (29,950) | |||
RSUs forfeited/canceled, weighted average grant date fair value | $ 34.06 | |||
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 |
Stock-Based Compensation Schedu
Stock-Based Compensation Schedule of Unvested Restricted Stock Units Activity (Details) - RSUs - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Shares Outstanding [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,723,011 | 1,479,672 | |
RSUs granted, shares | 725,478 | ||
RSUs vested, shares | (452,189) | ||
RSUs forfeited/canceled, shares | (29,950) | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Number | 1,539,272 | ||
lkq_expected_to_vest_other_than_options_weighted_average_per_share | $ 34.78 | ||
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 | 34.55 | $ 31.71 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | 39.02 | $ 31.71 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | 32.10 | ||
RSUs forfeited/canceled, weighted average grant date fair value | $ 34.06 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Outstanding, Weighted Average Remaining Contractual Terms | 3 years 1 month 6 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Aggregate Intrinsic Value, Vested | $ 75,763 |
Schedule of Stock-Based Compens
Schedule of Stock-Based Compensation Expense Expected to be Recognized (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 9,000 | $ 16,793 | $ 15,763 | |
Share-based Payment Arrangement, Nonvested Award, Excluding Option, Cost Not yet Recognized, Amount | $ 58,000 | $ 58,000 | ||
1 LKQ Europe Program [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award | ||||
Stock-based compensation expense | $ 8,000 | $ 16,000 |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | ||||
Net income | $ 305,008 | $ 118,770 | $ 571,340 | $ 264,749 |
Income from continuing operations | $ 305,008 | $ 118,493 | $ 571,340 | $ 265,387 |
Denominator for basic earnings per share—Weighted-average shares outstanding | 300,581 | 304,001 | 301,805 | 305,123 |
Effect of dilutive securities: | ||||
Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding | 301,467 | 304,190 | 302,609 | 305,477 |
Income from continuing operations | $ 1.01 | $ 0.39 | $ 1.89 | $ 0.87 |
Income from continuing operations | $ 1.01 | $ 0.39 | $ 1.89 | $ 0.87 |
RSUs | ||||
Effect of dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 712 | 189 | 670 | 352 |
Performance Based RSU [Member] | ||||
Effect of dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 174 | 0 | 134 | 0 |
Stock options | ||||
Effect of dilutive securities: | ||||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 0 | 0 | 2 |
Schedule of Antidilutive Securi
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Restricted Stock Units (RSUs) [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share | ||||
Antidilutive securities | 0 | 1,444 | 59 | 913 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | $ (101,090) | $ (279,763) | $ (101,090) | $ (279,763) | $ (126,122) | $ (99,009) | $ (313,903) | $ (200,885) |
Pretax income (loss) | 21,568 | 22,856 | 115 | (77,022) | ||||
Reclassification of unrealized loss (gain) | 1,022 | 10,416 | (884) | (3,177) | ||||
Reclassification of deferred income taxes | (261) | (2,607) | 233 | 587 | ||||
OtherComprehensiveIncomeLossBeforeReclassificationsDisposalOfBusiness | 671 | 766 | ||||||
Other comprehensive income from unconsolidated subsidiaries | 2,644 | 962 | (868) | (890) | ||||
Other Comprehensive Income (Loss), Tax | 59 | 1,842 | (677) | 858 | ||||
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | (59,834) | (243,524) | (59,834) | (243,524) | (81,698) | (57,126) | (274,858) | (170,893) |
Pretax income (loss) | 21,864 | 30,663 | (2,708) | (73,397) | ||||
Reclassification of unrealized loss (gain) | 0 | 0 | 0 | 0 | ||||
Reclassification of deferred income taxes | 0 | 0 | 0 | 0 | ||||
OtherComprehensiveIncomeLossBeforeReclassificationsDisposalOfBusiness | 671 | 766 | ||||||
Other comprehensive income from unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Tax | 0 | 0 | 0 | 0 | ||||
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | (99) | (1,994) | (99) | (1,994) | (310) | (968) | (1,963) | 5,358 |
Pretax income (loss) | (296) | (7,807) | 2,823 | (3,625) | ||||
Reclassification of unrealized loss (gain) | 585 | 7,761 | (1,758) | (5,946) | ||||
Reclassification of deferred income taxes | (137) | (1,827) | 481 | 1,361 | ||||
OtherComprehensiveIncomeLossBeforeReclassificationsDisposalOfBusiness | 0 | 0 | ||||||
Other comprehensive income from unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Tax | 59 | 1,842 | (677) | 858 | ||||
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | (32,341) | (29,939) | (32,341) | (29,939) | (32,654) | (32,967) | (31,814) | (31,934) |
Pretax income (loss) | 0 | 0 | 0 | 0 | ||||
Reclassification of unrealized loss (gain) | 437 | 2,655 | 874 | 2,769 | ||||
Reclassification of deferred income taxes | (124) | (780) | (248) | (774) | ||||
OtherComprehensiveIncomeLossBeforeReclassificationsDisposalOfBusiness | 0 | 0 | ||||||
Other comprehensive income from unconsolidated subsidiaries | 0 | 0 | 0 | 0 | ||||
Other Comprehensive Income (Loss), Tax | 0 | 0 | 0 | 0 | ||||
Accumulated Gain (Loss) from Unconsoldated Subsidiaries [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Accumulated other comprehensive loss | (8,816) | (4,306) | (8,816) | (4,306) | $ (11,460) | $ (7,948) | $ (5,268) | $ (3,416) |
Pretax income (loss) | 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 | 2,644 | 962 | (868) | (890) | ||||
Other Comprehensive Income (Loss), Tax | 0 | 0 | 0 | 0 | ||||
Interest expense, net of interest income [Member] | Interest Rate Swap [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification of unrealized loss (gain) | 495 | 1,769 | 1,188 | (1,527) | ||||
Interest expense, net of interest income [Member] | Currency Swap [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification of unrealized loss (gain) | 0 | (2,796) | (539) | (5,347) | ||||
Other income, net [Member] | Currency Swap [Member] | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification of unrealized loss (gain) | 0 | 8,788 | (1,973) | 928 | ||||
Other income, net [Member] | Forward Contracts | ||||||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||||||
Reclassification of unrealized loss (gain) | $ 90 | $ 0 | $ (434) | $ 0 |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | $ (1,022) | $ (10,416) | $ 884 | $ 3,177 |
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 | $ (585) | $ (7,761) | $ 1,758 | $ 5,946 |
Long-Term Obligations - Additio
Long-Term Obligations - Additional Information (Details) $ in Thousands, € in Millions | Apr. 01, 2021USD ($) | Apr. 01, 2021EUR (€) | Jan. 10, 2020USD ($) | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jan. 29, 2024 | Dec. 31, 2020USD ($) | Dec. 20, 2018USD ($) | Nov. 20, 2018USD ($) | Apr. 09, 2018EUR (€) | Dec. 01, 2017 | Apr. 14, 2016 |
Debt Instrument | ||||||||||||||||
Debt and Capital Lease Obligations, Net | $ 2,451,510 | $ 2,451,510 | $ 2,871,138 | |||||||||||||
Restructuring Charges And Business Combination Acquisition Related Costs net of Restructuring Depreciation | 198 | $ 3,173 | 379 | $ 3,972 | ||||||||||||
Borrowings Under Credit Facility | 1,400,000 | 1,400,000 | 967,000 | |||||||||||||
Early-redemption premium | (16,014) | (9,498) | ||||||||||||||
Loss on debt extinguishment | (23,564) | 0 | (23,564) | (12,751) | ||||||||||||
Long-term obligations, total | 2,466,140 | 2,466,140 | 2,896,676 | |||||||||||||
Equity investment mark to market adjustments | 1,061 | 0 | 5,800 | 0 | ||||||||||||
(Gain) loss on disposal of businesses and impairment of net assets held for sale | (597) | 2,485 | (582) | 2,236 | ||||||||||||
Less: comprehensive income attributable to discontinued noncontrolling interest | 0 | $ 0 | 0 | 103 | ||||||||||||
Loans Payable [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Secured Debt | 0 | 0 | 323,750 | |||||||||||||
US Notes (2023) [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Senior notes interest rate | 4.75% | |||||||||||||||
Debt Instrument, Redemption Price, Percentage | 101.583% | |||||||||||||||
Extinguishment of Debt, Amount | $ 614,000 | |||||||||||||||
Early-redemption premium | 9,000 | |||||||||||||||
Interest and Debt Expense | 4,000 | |||||||||||||||
Loss on debt extinguishment | 13,000 | |||||||||||||||
Euro Notes (2024) | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term Debt | 592,900 | 592,900 | 610,800 | |||||||||||||
Senior notes interest rate | 3.875% | |||||||||||||||
Long-term Debt, Fair Value | 642,000 | $ 642,000 | 662,000 | |||||||||||||
Senior Notes 2024 [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||||
Euro Notes 2026/28 [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term Debt | 296,450 | $ 296,450 | 1,221,600 | € 1,000 | ||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||||
Early-redemption premium | € | € 14 | |||||||||||||||
Long-term Debt, Fair Value | $ 319,000 | $ 319,000 | $ 1,300,000 | |||||||||||||
Euro Notes 2026 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Senior notes interest rate | 3.625% | 3.625% | ||||||||||||||
Debt Instrument, Redemption Price, Percentage | 101.813% | 101.813% | ||||||||||||||
Extinguishment of Debt, Amount | $ 915,000 | € 777 | ||||||||||||||
Early-redemption premium | 16,000 | |||||||||||||||
Interest and Debt Expense | 16,000 | € 14 | ||||||||||||||
Loss on debt extinguishment | $ 24,000 | |||||||||||||||
Euro Notes 2028 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | |||||||||||||||
Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Weighted average interest rates | 1.10% | 1.10% | 1.70% | |||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,600,000 | $ 1,600,000 | ||||||||||||||
Amendment No. 3, Fourth Amended and Restate Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-Term Line of Credit, Current | $ 18,000 | |||||||||||||||
Maximum Permitted Net Leverage Ratio | 400.00% | |||||||||||||||
Fourth Amended Credit Agreement | Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Payments of Financing Costs | $ 4,000 | |||||||||||||||
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 | 0 | |||||||||||||
AmendmentNo.4FourthAmendedandRestateCreditAgreementMember | Revolving Credit Facility [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,150,000 | |||||||||||||||
Increment change in applicable margin | 0.25% | |||||||||||||||
Long-Term Line of Credit, Current | 18,000 | |||||||||||||||
Outstanding letters of credit | $ 71,000 | $ 71,000 | ||||||||||||||
Maximum Permitted Net Leverage Ratio | 400.00% | 425.00% | 450.00% | |||||||||||||
AmendmentNo.4FourthAmendedandRestateCreditAgreementMember | Letter of Credit [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.125% | |||||||||||||||
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 | |||||||||||||||
TwentyTwentyEight [Member] | Euro Notes 2026/28 [Member] | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Long-term Debt | € | € 250 | |||||||||||||||
TwentyTwentyEight [Member] | Euro Notes 2028 | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Senior notes interest rate | 4.125% | |||||||||||||||
Net Receivables [Member] | Mitsubishi UFJ [Member] | Receivables securitization | ||||||||||||||||
Debt Instrument | ||||||||||||||||
Debt Instrument, Collateral Amount | $ 113,000 | $ 113,000 | $ 121,000 | |||||||||||||
Maximum | AmendmentNo.4FourthAmendedandRestateCreditAgreementMember | 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 | 3 Months Ended | 62 Months Ended | |||||
Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021USD ($) | Jan. 29, 2024 | Dec. 31, 2020USD ($) | Apr. 09, 2018EUR (€) | Apr. 14, 2016EUR (€) | |
Debt Instrument | |||||||
Finance Lease, Liability | $ 53,841 | $ 57,336 | |||||
Other Debt | 65,446 | 15,706 | |||||
Long-term obligations, total | 2,466,140 | 2,896,676 | |||||
Deferred Finance Costs, Noncurrent, Net | (14,324) | (25,225) | |||||
Deferred Finance Costs, Current, Net | (306) | (313) | |||||
Long-term obligations, total, net | 2,451,510 | 2,871,138 | |||||
Current portion of long-term obligations | (90,825) | (58,497) | |||||
Long-term obligations, excluding current portion | 2,360,685 | 2,812,641 | |||||
Loans Payable | |||||||
Debt Instrument | |||||||
Term loan | 0 | 323,750 | |||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument | |||||||
Long-term Line of Credit | 1,434,898 | 642,958 | |||||
Euro Notes (2024) | |||||||
Debt Instrument | |||||||
Long-term Debt | 592,900 | 610,800 | |||||
Euro Notes 2026/28 [Member] | |||||||
Debt Instrument | |||||||
Long-term Debt | 296,450 | 1,221,600 | € 1,000 | ||||
Notes payable | |||||||
Debt Instrument | |||||||
Notes Payable | $ 22,605 | $ 24,526 | |||||
Revolving Credit Facility [Member] | |||||||
Debt Instrument | |||||||
Weighted average interest rates | 1.10% | 1.70% | |||||
Amendment No. 3, Fourth Amended and Restate Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||
Debt Instrument | |||||||
Maximum Permitted Net Leverage Ratio | 400.00% | ||||||
Mitsubishi UFJ [Member] | Receivables securitization | |||||||
Debt Instrument | |||||||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 0 | $ 0 | |||||
AmendmentNo.4FourthAmendedandRestateCreditAgreementMember | Revolving Credit Facility [Member] | |||||||
Debt Instrument | |||||||
Maximum Permitted Net Leverage Ratio | 400.00% | 425.00% | 450.00% | ||||
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 | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Debt Instrument | ||
Finance Lease, Weighted Average Discount Rate, Percent | 3.50% | 3.50% |
Notes Payable [Member] | ||
Debt Instrument | ||
Debt, Weighted Average Interest Rate | 3.30% | 3.30% |
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% | |
Other Debt [Member] [Member] | ||
Debt Instrument | ||
Debt, Weighted Average Interest Rate | 0.80% | 1.20% |
Mitsubishi UFJ [Member] | Receivables Securitization [Member] | ||
Debt Instrument | ||
Transfers Accounted for as Secured Borrowings, Associated Liabilities, Carrying Amount | $ 0 | $ 0 |
Revolving Credit Facility [Member] | ||
Debt Instrument | ||
Debt, Weighted Average Interest Rate | 1.10% | 1.70% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) - Dec. 31, 2020 € in Thousands, kr in Thousands, $ in Thousands, £ in Millions | USD ($) | EUR (€) | SEK (kr) | GBP (£) |
Derivative Liability, Current | $ 58,577 | |||
Interest Rate Swap [Member] | ||||
Derivative, Notional Amount | 480,000 | |||
Cross Currency Interest Rate Contract [Member] | ||||
Derivative, Notional Amount | € | € 340,000 | |||
Forward Contracts | ||||
Derivative, Notional Amount | € 142,000 | kr 227,000 | £ 75 | |
Fair Value, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | ||||
Derivative Liability, Current | 56,328 | |||
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | ||||
Derivative Liability, Current | 899 | |||
Fair Value, Recurring [Member] | Forward Contracts | ||||
Derivative Liability, Current | $ 1,350 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands, € in Billions | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | Apr. 09, 2018EUR (€) |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Long-term Line of Credit | $ 1,400,000 | $ 967,000 | |
Fair Value, Recurring [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Assets, Fair Value Disclosure | 86,706 | 72,250 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 89,921 | 151,920 | |
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 | 86,706 | 72,250 | |
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 899 | ||
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 | 3,056 | 13,263 | |
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 | 86,865 | 76,240 | |
Fair Value, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 56,328 | ||
Fair Value, Recurring [Member] | Forward Contracts | Instruments designated as hedging and non-hedging | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 5,190 | ||
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] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 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] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Forward Contracts | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 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 | 86,706 | 72,250 | |
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 86,865 | 138,657 | |
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 | 86,706 | 72,250 | |
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] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 899 | ||
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 | 86,865 | 76,240 | |
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] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 56,328 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Forward Contracts | Instruments designated as hedging and non-hedging | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 5,190 | ||
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 | 3,056 | 13,263 | |
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] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 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 | 3,056 | 13,263 | |
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] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Forward Contracts | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | ||
Euro Notes 2026/28 [Member] | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Long-term Debt | 296,450 | 1,221,600 | € 1 |
Long-term Debt, Fair Value | 319,000 | 1,300,000 | |
Euro Notes (2024) | |||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |||
Long-term Debt | 592,900 | 610,800 | |
Long-term Debt, Fair Value | $ 642,000 | $ 662,000 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Defined Benefit Plan Disclosure [Line Items] | |||||
Defined Benefit Plan, Funded (Unfunded) Status of Plan | $ 148,000 | $ 148,000 | $ 153,000 | ||
Defined Benefit Plan, Service Cost | 933 | $ 856 | 1,828 | $ 1,526 | |
Defined Benefit Plan, Interest Cost | 353 | 731 | 695 | 1,449 | |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (423) | (662) | (846) | (1,140) | |
Defined Benefit Plan, Amortization of Gain (Loss) | (437) | (555) | (874) | (669) | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 1,300 | 3,580 | 2,551 | 4,604 | |
Defined Benefits Plan, Settlements Loss | $ 0 | $ 2,100 | $ 0 | $ 2,100 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Effective Income Tax Rate Reconciliation, Percent | 26.30% | 27.70% |
Effective Income Tax Rate Reconciliation, Change as a result of the Discrete Items, Percent | 0.10% | 0.30% |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($) | Jun. 30, 2020USD ($) | |
Segment Reporting Information | ||||
Net income | $ 305,008 | $ 118,770 | $ 571,340 | $ 264,749 |
Less: net income (loss) attributable to continuing noncontrolling interest | 384 | (22) | 803 | 718 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | 0 | 103 |
Segment EBITDA | 523,691 | 291,174 | 975,298 | 613,106 |
Depreciation and amortization | 70,743 | 72,930 | $ 142,340 | 144,309 |
Number of operating segments | 4 | |||
Number of reportable segments | 3 | |||
Revenue | 3,435,114 | 2,626,323 | $ 6,605,900 | 5,627,258 |
Intersegment [Member] | ||||
Segment Reporting Information | ||||
Revenue | 0 | 0 | 0 | 0 |
Third Party [Member] | ||||
Segment Reporting Information | ||||
Revenue | 3,435,114 | 2,626,323 | 6,605,900 | 5,627,258 |
Specialty [Member] | ||||
Segment Reporting Information | ||||
Segment EBITDA | 79,399 | 52,233 | 140,881 | 84,465 |
Depreciation and amortization | 7,038 | 7,387 | 14,117 | 14,523 |
Revenue | 532,279 | 404,874 | 991,218 | 753,456 |
Specialty [Member] | Intersegment [Member] | ||||
Segment Reporting Information | ||||
Revenue | 876 | 872 | 1,856 | 2,048 |
Specialty [Member] | Third Party [Member] | ||||
Segment Reporting Information | ||||
Revenue | 531,403 | 404,002 | 989,362 | 751,408 |
North America | ||||
Segment Reporting Information | ||||
Segment EBITDA | 276,186 | 149,554 | 525,353 | 360,992 |
Depreciation and amortization | 23,721 | 25,050 | $ 47,981 | 48,198 |
Number of reportable segments | 1 | |||
Revenue | 1,327,694 | 1,011,395 | $ 2,577,387 | 2,301,590 |
North America | Intersegment [Member] | ||||
Segment Reporting Information | ||||
Revenue | 644 | 259 | 963 | 519 |
North America | Third Party [Member] | ||||
Segment Reporting Information | ||||
Revenue | 1,327,050 | 1,011,136 | 2,576,424 | 2,301,071 |
us-gaap_IntersegmentEliminationMember | ||||
Segment Reporting Information | ||||
Segment EBITDA | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Revenue | (1,520) | 1,131 | (2,819) | (2,567) |
us-gaap_IntersegmentEliminationMember | Intersegment [Member] | ||||
Segment Reporting Information | ||||
Revenue | (1,520) | 1,131 | (2,819) | (2,567) |
us-gaap_IntersegmentEliminationMember | Third Party [Member] | ||||
Segment Reporting Information | ||||
Revenue | 0 | 0 | 0 | 0 |
Europe | ||||
Segment Reporting Information | ||||
Segment EBITDA | 168,106 | 89,387 | 309,064 | 167,649 |
Depreciation and amortization | 39,984 | 40,493 | 80,242 | 81,588 |
Revenue | 1,576,661 | 1,211,185 | 3,040,114 | 2,574,779 |
Europe | Intersegment [Member] | ||||
Segment Reporting Information | ||||
Revenue | 0 | 0 | 0 | 0 |
Europe | Third Party [Member] | ||||
Segment Reporting Information | ||||
Revenue | $ 1,576,661 | $ 1,211,185 | $ 3,040,114 | $ 2,574,779 |
Schedule of Financial Performan
Schedule of Financial Performance by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information | ||||
Revenues | $ (3,435,114) | $ (2,626,323) | $ (6,605,900) | $ (5,627,258) |
Segment EBITDA | 523,691 | 291,174 | 975,298 | 613,106 |
Depreciation and amortization | 70,743 | 72,930 | 142,340 | 144,309 |
Specialty [Member] | ||||
Segment Reporting Information | ||||
Revenues | (532,279) | (404,874) | (991,218) | (753,456) |
Segment EBITDA | 79,399 | 52,233 | 140,881 | 84,465 |
Depreciation and amortization | 7,038 | 7,387 | 14,117 | 14,523 |
North America | ||||
Segment Reporting Information | ||||
Revenues | (1,327,694) | (1,011,395) | (2,577,387) | (2,301,590) |
Segment EBITDA | 276,186 | 149,554 | 525,353 | 360,992 |
Depreciation and amortization | 23,721 | 25,050 | 47,981 | 48,198 |
Europe | ||||
Segment Reporting Information | ||||
Revenues | (1,576,661) | (1,211,185) | (3,040,114) | (2,574,779) |
Segment EBITDA | 168,106 | 89,387 | 309,064 | 167,649 |
Depreciation and amortization | 39,984 | 40,493 | 80,242 | 81,588 |
us-gaap_IntersegmentEliminationMember | ||||
Segment Reporting Information | ||||
Revenues | 1,520 | (1,131) | 2,819 | 2,567 |
Segment EBITDA | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Third Party [Member] | ||||
Segment Reporting Information | ||||
Revenues | (3,435,114) | (2,626,323) | (6,605,900) | (5,627,258) |
Third Party [Member] | Specialty [Member] | ||||
Segment Reporting Information | ||||
Revenues | (531,403) | (404,002) | (989,362) | (751,408) |
Third Party [Member] | North America | ||||
Segment Reporting Information | ||||
Revenues | (1,327,050) | (1,011,136) | (2,576,424) | (2,301,071) |
Third Party [Member] | Europe | ||||
Segment Reporting Information | ||||
Revenues | (1,576,661) | (1,211,185) | (3,040,114) | (2,574,779) |
Third Party [Member] | us-gaap_IntersegmentEliminationMember | ||||
Segment Reporting Information | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment [Member] | ||||
Segment Reporting Information | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment [Member] | Specialty [Member] | ||||
Segment Reporting Information | ||||
Revenues | (876) | (872) | (1,856) | (2,048) |
Intersegment [Member] | North America | ||||
Segment Reporting Information | ||||
Revenues | (644) | (259) | (963) | (519) |
Intersegment [Member] | Europe | ||||
Segment Reporting Information | ||||
Revenues | 0 | 0 | 0 | 0 |
Intersegment [Member] | us-gaap_IntersegmentEliminationMember | ||||
Segment Reporting Information | ||||
Revenues | $ 1,520 | $ (1,131) | $ 2,819 | $ 2,567 |
Reconciliation Of Segment EBITD
Reconciliation Of Segment EBITDA To Net Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reconciliation of Segment Earnings Before Interest Taxes Depreciation And Amortization to Net Income Table [Line Items] | ||||
Net income | $ 305,008 | $ 118,770 | $ 571,340 | $ 264,749 |
Less: net income (loss) attributable to continuing noncontrolling interest | 384 | (22) | 803 | 718 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | 0 | (103) |
Net income | 304,624 | 118,792 | 570,537 | 263,928 |
Net income (loss) from discontinued operations | 0 | (277) | 0 | 638 |
Less: comprehensive income attributable to discontinued noncontrolling interest | 0 | 0 | 0 | 103 |
Net income from continuing operations attributable to LKQ stockholders | 304,624 | 118,515 | 570,537 | 264,669 |
Depreciation and amortization | 64,896 | 65,747 | 130,697 | 131,242 |
Depreciation and amortization - cost of goods sold | 5,649 | 4,010 | 11,264 | 9,095 |
Depreciation and amortization - restructuring expenses (1) | 198 | 3,173 | 379 | 3,972 |
Interest expense, net of interest income | 16,172 | 25,616 | 40,351 | 51,547 |
Loss on debt extinguishment | 23,564 | 0 | 23,564 | 12,751 |
Provision for income taxes | 107,719 | 41,869 | 200,688 | 102,280 |
EBITDA | 522,822 | 258,930 | 977,480 | 575,556 |
Equity in earnings (losses) of unconsolidated subsidiaries (2) | 3,478 | (2,649) | 9,297 | (2,133) |
Equity investment mark to market adjustments | 1,061 | 0 | 5,800 | 0 |
Restructuring and acquisition related expenses (1) | 4,871 | 21,777 | 12,575 | 27,948 |
Restructuring expenses - cost of goods sold | 0 | 5,665 | (163) | 5,661 |
(Gain) loss on disposal of businesses and impairment of net assets held for sale | (597) | 2,485 | (582) | 2,236 |
Change in fair value of contingent consideration liabilities | 1,134 | (332) | 1,085 | (428) |
Segment EBITDA | $ 523,691 | $ 291,174 | $ 975,298 | $ 613,106 |
Schedule of Capital Expenditure
Schedule of Capital Expenditures by Reportable Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Segment Reporting Information | ||||
Capital Expenditures | $ 46,075 | $ 32,763 | $ 87,854 | $ 77,301 |
Specialty [Member] | ||||
Segment Reporting Information | ||||
Capital Expenditures | 8,055 | 2,369 | 10,201 | 4,538 |
North America | ||||
Segment Reporting Information | ||||
Capital Expenditures | 16,817 | 10,892 | 30,152 | 40,213 |
Europe | ||||
Segment Reporting Information | ||||
Capital Expenditures | $ 21,203 | $ 19,502 | $ 47,501 | $ 32,550 |
Schedule of Assets by Reportabl
Schedule of Assets by Reportable Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Segment Reporting Information | ||
Receivables, net | $ 1,225,735 | $ 1,073,389 |
Inventories | 2,394,147 | 2,414,612 |
Property, plant and equipment, net | 1,207,156 | 1,248,703 |
Operating lease assets, net | 1,368,143 | 1,353,124 |
Equity method investments | 168,467 | 155,224 |
Other unallocated assets | 6,074,411 | 6,115,481 |
Total assets | 12,438,059 | 12,360,533 |
Specialty [Member] | ||
Segment Reporting Information | ||
Receivables, net | 152,542 | 88,485 |
Inventories | 323,016 | 301,165 |
Property, plant and equipment, net | 83,930 | 81,279 |
Operating lease assets, net | 73,826 | 77,563 |
North America | ||
Segment Reporting Information | ||
Receivables, net | 403,761 | 386,289 |
Inventories | 785,064 | 810,798 |
Property, plant and equipment, net | 568,905 | 583,985 |
Operating lease assets, net | 772,614 | 755,430 |
Equity method investments | 21,255 | 18,676 |
Europe | ||
Segment Reporting Information | ||
Receivables, net | 669,432 | 598,615 |
Inventories | 1,286,067 | 1,302,649 |
Property, plant and equipment, net | 554,321 | 583,439 |
Operating lease assets, net | 521,703 | 520,131 |
Equity method investments | $ 147,212 | $ 136,548 |
Segment and Geographic Inform_4
Segment and Geographic Information Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Revenues from External Customers and Long-Lived Assets | ||||
Revenues | $ 3,435,114 | $ 2,626,323 | $ 6,605,900 | $ 5,627,258 |
UNITED STATES | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenues | 1,749,496 | 1,330,543 | 3,354,929 | 2,864,489 |
GERMANY | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenues | 418,817 | 359,134 | 806,693 | 733,686 |
UNITED KINGDOM | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenues | 421,314 | 278,419 | 824,752 | 669,038 |
Other countries | ||||
Revenues from External Customers and Long-Lived Assets | ||||
Revenues | $ 845,487 | $ 658,227 | $ 1,619,526 | $ 1,360,045 |
Schedule of Tangible Long-Lived
Schedule of Tangible Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | $ 2,575,299 | $ 2,601,827 |
UNITED STATES | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 1,414,705 | 1,419,113 |
UNITED KINGDOM | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 304,395 | 315,333 |
Other countries | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | 508,668 | 507,197 |
GERMANY | ||
Revenues from External Customers and Long-Lived Assets | ||
Long-Lived Assets | $ 347,531 | $ 360,184 |