Segment and Geographic Information (Tables)

9 Months Ended

Sep. 30, 2018

The following tables present our financial performance by reportable segment for the periods indicated (in thousands):



	North America		Europe		Specialty		Eliminations			Consolidated
Three Months Ended September 30, 2018
Revenue:
Third Party	$	1,262,657	$	1,470,856	$	388,865	$	—		$	3,122,378
Intersegment	142		—		1,196		(1,338		)	—
Total segment revenue	$	1,262,799	$	1,470,856	$	390,061	$	(1,338	)	$	3,122,378
Segment EBITDA	$	154,049	$	129,358	$	42,937	$	—		$	326,344
Depreciation and amortization ⁽¹⁾	22,151		52,139		7,183		—			81,473
Three Months Ended September 30, 2017
Revenue:
Third Party	$	1,181,756	$	954,522	$	329,522	$	—		$	2,465,800
Intersegment	187		—		1,072		(1,259		)	—
Total segment revenue	$	1,181,943	$	954,522	$	330,594	$	(1,259	)	$	2,465,800
Segment EBITDA	$	152,627	$	79,294	$	35,114	$	—		$	267,035
Depreciation and amortization ⁽¹⁾	22,104		32,326		5,472		—			59,902



	North America		Europe		Specialty		Eliminations			Consolidated
Nine Months Ended September 30, 2018
Revenue:
Third Party	$	3,927,282	$	3,795,439	$	1,151,172	$	—		$	8,873,893
Intersegment	526		—		3,554		(4,080		)	—
Total segment revenue	$	3,927,808	$	3,795,439	$	1,154,726	$	(4,080	)	$	8,873,893
Segment EBITDA	$	506,772	$	315,785	$	140,974	$	—		$	963,531
Depreciation and amortization ⁽¹⁾	64,985		124,697		21,295		—			210,977
Nine Months Ended September 30, 2017
Revenue:
Third Party	$	3,596,108	$	2,665,170	$	1,005,776	$	—		$	7,267,054
Intersegment	589		—		3,222		(3,811		)	—
Total segment revenue	$	3,596,697	$	2,665,170	$	1,008,998	$	(3,811	)	$	7,267,054
Segment EBITDA	$	502,494	$	241,537	$	119,133	$	—		$	863,164
Depreciation and amortization ⁽¹⁾	64,305		85,809		16,394		—			166,508


(1)	Amounts presented include depreciation and amortization expense recorded within cost of goods sold.

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



	Three Months Ended					Nine Months Ended
	September 30,					September 30,
	2018			2017		2018			2017
Net income	$	134,480		$	122,381	$	445,109		$	409,573
Less: net income attributable to noncontrolling interest	378			—		1,040			—
Net income attributable to LKQ stockholders	134,102			122,381		444,069			409,573
Subtract:
Net loss from discontinued operations	—			—		—			(4,531		)
Net income from continuing operations attributable to LKQ stockholders	134,102			122,381		444,069			414,104
Add:
Depreciation and amortization	76,701			56,877		196,322			159,178
Depreciation and amortization - cost of goods sold	4,772			3,025		14,655			7,330
Interest expense, net	40,860			25,222		107,647			73,806
Provision for income taxes	46,068			58,189		156,427			206,206
EBITDA	302,503			265,694		919,120			860,624
Subtract:
Equity in (losses) earnings of unconsolidated subsidiaries ⁽¹⁾	(20,284		)	2,673		(18,326		)	3,878
Fair value gain on Mekonomen derivative instrument ⁽¹⁾	2,509			—		2,509			—
Gains on bargain purchases ⁽²⁾	—			913		328			3,990
Add:
Restructuring and acquisition related expenses ⁽³⁾	6,614			4,922		26,546			10,371
Inventory step-up adjustment - acquisition related	—			—		403			—
Impairment of net assets held for sale	—			—		2,438			—
Change in fair value of contingent consideration liabilities	(548		)	5		(465		)	37
Segment EBITDA	$	326,344		$	267,035	$	963,531		$	863,164


(1)	See Note 4, "Financial Statement Information," for further information.


(2)	Reflects the gains on bargain purchases related to our acquisitions of a wholesale business in Europe and Andrew Page. See Note 2, "Business Combinations," for further information.


(3)	See Note 6, "Restructuring and Acquisition Related Expenses," for further information.

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

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



	September 30,		December 31,
	2018		2017
Receivables, net
North America	$	437,429	$	379,666
Europe ⁽¹⁾	696,106		555,372
Specialty	122,341		92,068
Total receivables, net ⁽²⁾	1,255,876		1,027,106
Inventories
North America	1,058,310		1,076,393
Europe ⁽¹⁾	1,391,578		964,068
Specialty	345,006		340,322
Total inventories	2,794,894		2,380,783
Property, Plant and Equipment, net
North America	560,918		537,286
Europe ⁽¹⁾	554,550		293,539
Specialty	85,535		82,264
Total property, plant and equipment, net	1,201,003		913,089
Equity Method Investments
North America	16,075		336
Europe⁽³⁾	141,334		208,068
Total equity method investments	157,409		208,404
Other unallocated assets	6,176,154		4,837,490
Total assets	$	11,585,336	$	9,366,872

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

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