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Segment and Geographic Information
 12 Months Ended
Dec. 31, 2023
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
We have four operating segments: Wholesale - North America; Europe; Specialty; and Self Service, each of which is presented as a reportable segment.

The segments are organized based on a combination of geographic areas served and type of product lines offered. The segments are managed separately as the businesses serve different customers and are affected by different economic conditions. Wholesale - North America and Self Service have similar economic characteristics and have common products and services, customers and methods of distribution. We are reporting these operating segments separately to provide greater transparency to investors.
The following tables present our financial performance by reportable segment for the periods indicated (in millions):

Wholesale - North AmericaEuropeSpecialtySelf ServiceEliminationsConsolidated
Year Ended December 31, 2023
Revenue:
Third Party$5,281 $6,323 $1,665 $597 $— $13,866 
Intersegment1 — 3 — (4)— 
Total segment revenue$5,282 $6,323 $1,668 $597 $(4)$13,866 
Segment EBITDA$975 $614 $134 $36 $— $1,759 
Total depreciation and amortization (1)
121 150 32 16 — 319 
Year Ended December 31, 2022
Revenue:
Third Party$4,556 $5,735 $1,788 $715 $— $12,794 
Intersegment— — 3 — (3)— 
Total segment revenue$4,556 $5,735 $1,791 $715 $(3)$12,794 
Segment EBITDA$852 $585 $199 $83 $— $1,719 
Total depreciation and amortization (1)
75 145 30 14 — 264 
Year Ended December 31, 2021
Revenue:
Third Party$4,376 $6,062 $1,864 $787 $— $13,089 
Intersegment3 — 3 — (6)— 
Total segment revenue$4,379 $6,062 $1,867 $787 $(6)$13,089 
Segment EBITDA$769 $618 $223 $175 $— $1,785 
Total depreciation and amortization (1)
80 157 30 17 — 284 
(1)    Amounts presented include depreciation and amortization expense recorded within Cost of goods sold, SG&A expenses and Restructuring and transaction 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 the 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 Net Income attributable to LKQ stockholders excluding discontinued operations; depreciation, amortization; interest; gains and losses on debt extinguishment; income tax expense; restructuring and transaction 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 fair value adjustments; impairment charges; and direct impacts of the Ukraine/Russia conflict and related sanctions (including provisions for and subsequent adjustments to reserves for asset recoverability and expenditures to support our employees and their families).
The table below provides a reconciliation of Net Income to Segment EBITDA (in millions):

Year Ended December 31,
202320222021
Net income$938 $1,150 $1,092 
Less: net income attributable to continuing noncontrolling interest2 1 1 
Net income attributable to LKQ stockholders936 1,149 1,091 
Less: net (loss) income from discontinued operations(6)6 1 
Net income from continuing operations attributable to LKQ stockholders942 1,143 1,090 
Adjustments - continuing operations attributable to LKQ stockholders:
Depreciation and amortization319 264 284 
Interest expense, net of interest income186 70 70 
Loss on debt extinguishment1 — 24 
Provision for income taxes306 385 331 
Equity in earnings of unconsolidated subsidiaries (1)
(15)(11)(23)
Gains on foreign exchange contracts - acquisition related (2)
(49)— — 
Equity investment fair value adjustments2 5 (11)
Restructuring and transaction related expenses (3)
65 20 19 
Restructuring expenses - cost of goods sold (3)
4 — — 
Gain on disposal of businesses (4)
— (159)— 
Change in fair value of contingent consideration liabilities— — 1 
Gains on previously held equity interests(3)(1)— 
Direct impacts of Ukraine/Russia conflict (5)
— 3 — 
Impairment of net assets held for sale1 — — 
Segment EBITDA$1,759 $1,719 $1,785 
(1)    Refer to Note 11, "Equity Method Investments," for further information.
(2)    Refer to Note 3, "Business Combinations" and Note 20, "Derivative Instruments and Hedging Activities" for further information.
(3)    Refer to Note 14, "Restructuring and Transaction Related Expenses" for further information.
(4)    Refer to "Other Divestitures (Not Classified in Discontinued Operations)" in Note 4, "Discontinued Operations and Divestitures," for further information.
(5)    Adjustments include provisions for and subsequent adjustments to reserves for asset recoverability (receivables and inventory) and expenditures to support our employees and their families in Ukraine.

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

Year Ended December 31,
202320222021
Capital Expenditures
Wholesale - North America
$118 $84 $113 
Europe163 105 141 
Specialty41 19 23 
Self Service36 14 16 
Total capital expenditures$358 $222 $293 
The following table presents assets by reportable segment (in millions):
December 31, 2023December 31, 2022
Receivables, net of allowance for credit losses
Wholesale - North America(1)
$470 $351 
Europe580 547 
Specialty107 92 
Self Service8 8 
Total receivables, net of allowance for credit losses1,165 998 
Inventories
Wholesale - North America(1)
1,217 822 
Europe1,390 1,418 
Specialty475 469 
Self Service39 43 
Total inventories3,121 2,752 
Property, plant and equipment, net
Wholesale - North America(1)
644 505 
Europe642 547 
Specialty118 94 
Self Service112 90 
Total property, plant and equipment, net1,516 1,236 
Operating lease assets, net
Wholesale - North America(1)
615 541 
Europe494 466 
Specialty84 85 
Self Service143 135 
Total operating lease assets, net1,336 1,227 
Other unallocated assets7,941 5,825 
Total assets$15,079 $12,038 
(1)    The increase in assets for the Wholesale - North America segment is primarily attributable to the Uni-Select Acquisition.

We report net receivables; inventories; net property, plant and equipment; and net operating lease assets 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 expenses and other current and noncurrent assets, goodwill, other intangibles and equity method investments.

Our largest countries of operation are the U.S., followed by Germany and the U.K. Additional European operations are located in the Netherlands, Italy, Czech Republic, Belgium, Austria, Slovakia, Poland, and other European countries. As a result of the Uni-Select Acquisition, we further expanded our wholesale operations in Canada. Our operations in other countries include remanufacturing operations in Mexico, an aftermarket parts freight consolidation warehouse in Taiwan, and administrative support functions in India.
The following table sets forth our tangible long-lived assets by geographic area (in millions):

December 31, 2023December 31, 2022
Long-lived assets
United States$1,496 $1,371 
Germany324 290 
United Kingdom295 256 
Other countries737 546 
Total long-lived assets$2,852 $2,463