2.2.0.7 false Derivative Instruments and Hedging Activities 10601 - Disclosure - Derivative Instruments and Hedging Activities true false false false 1 USD false false Unit12 Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 Unit13 Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares xbrli 0 Unit1 Standard http://www.xbrl.org/2003/instance shares xbrli 0 $ 2 Derivative Instruments And Hedging Activities 0 lkqx_DerivativeInstrumentsAndHedgingActivitiesAbstract lkqx false na duration Derivative Instruments And Hedging Activities [Abstract] false false false false false true false false false false false false 1 false false false false 0 0 false false false xbrli:stringItemType string Derivative Instruments And Hedging Activities [Abstract] false 3 Derivative Instruments and Hedging Activities 1 us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock us-gaap true na duration No definition available. false false false false false false false false false false false terselabel false 1 false false false false 0 0 <div> <div> Note 6. Derivative Instruments and Hedging Activities We are exposed to market risks, including the effect of changes in interest rates, foreign currency exchange rates and commodity prices. Under our current policies, we use derivatives to manage our exposure to variable interest rates on our Credit Agreement, but we do not attempt to hedge our foreign currency and commodity price risks. We do not hold or issue derivatives for trading purposes. At September 30, 2010, we had interest rate swap agreements in place to hedge a portion of the variable interest rate risk on our variable rate term loans, with the objective of minimizing the impact of interest rate fluctuations and stabilizing cash flows. Beginning on the effective dates of the interest rate swap agreements, on a monthly basis through the maturity date, we have paid and will pay the fixed interest rate and have received and will receive payment at a variable rate of interest based on the London InterBank Offered Rate ("LIBOR") on the notional amount. The interest rate swap agreements qualify as cash flow hedges, and we have elected to apply hedge accounting for these swap agreements. As a result, the effective portion of changes in the fair value of the interest rate swap agreements is recorded in Other Comprehensive Income and is reclassified to earnings when the underlying interest payment has an impact on earnings. The ineffective portion of changes in the fair value of the interest rate swap agreements is reported in interest expense. The following table summarizes the terms of our interest rate swap agreements as of September 30, 2010:   <table border="0" cellspacing="0" cellpadding="0" width="100%" align="center"> <tr><td> </td> <td> </td> <td> </td> <td valign="bottom" width="19%"> </td> <td> </td> <td valign="bottom" width="19%"> </td> <td> </td> <td valign="bottom" width="19%"> </td> <td> </td> <td> </td> <td> </td></tr> <tr><td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center">Notional Amount</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" align="center">Effective Date</td> <td valign="bottom"> </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" align="center">Maturity Date</td> <td valign="bottom"> </td> <td style="border-bottom: #000000 1px solid;" valign="bottom" colspan="2" align="center">Fixed Interest Rate*</td> <td valign="bottom"> </td></tr> <tr bgcolor="#cceeff"><td valign="top"> </td> <td valign="top" align="right">$200,000,000</td> <td valign="top" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom" align="center">April 14, 2008</td> <td valign="bottom"> </td> <td valign="bottom" align="center">April 14, 2011</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">4.99</td> <td valign="bottom" nowrap="nowrap">% </td></tr> <tr><td valign="top"> </td> <td valign="top" align="right">$250,000,000</td> <td valign="top" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom" align="center">September 15, 2008</td> <td valign="bottom"> </td> <td valign="bottom" align="center">October 14, 2010</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">4.88</td> <td valign="bottom" nowrap="nowrap">% </td></tr> <tr bgcolor="#cceeff"><td valign="top"> </td> <td valign="top" align="right">$250,000,000</td> <td valign="top" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom" align="center">October 14, 2010</td> <td valign="bottom"> </td> <td valign="bottom" align="center">October 14, 2015</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3.81</td> <td valign="bottom" nowrap="nowrap">% </td></tr> <tr><td valign="top"> </td> <td valign="top" align="right">$100,000,000</td> <td valign="top" nowrap="nowrap">  </td> <td valign="bottom"> </td> <td valign="bottom" align="center">April 14, 2011</td> <td valign="bottom"> </td> <td valign="bottom" align="center">October 14, 2013</td> <td valign="bottom"> </td> <td valign="bottom"> </td> <td valign="bottom" align="right">3.34</td> <td valign="bottom" nowrap="nowrap">% </td></tr></table> <table style="border-collapse: collapse;" border="0" cellspacing="0" cellpadding="0" width="100%"> <tr><td valign="top" width="2%" align="left">*</td> <td valign="top" align="left">Includes applicable margin of 2.25% per annum currently in effect under the Credit Agreement </td></tr></table> As of September 30, 2010, the fair market value of these contracts was a liability of $5.6 million and was included in Other Accrued Expenses ($3.3 million) and Other Noncurrent Liabilities ($2.3 million) on our unaudited consolidated condensed balance sheet. As of December 31, 2009, the fair market value of the interest rate swap contracts was a liability of $10.2 million and was included in Other Accrued Expenses ($5.0 million) and Other Noncurrent Liabilities ($5.2 million) on our unaudited consolidated condensed balance sheet. During the nine months ended September 30, 2010 and 2009, we recognized a $2.5 million loss (net of tax) and $4.4 million loss (net of tax), respectively, on derivatives in Other Comprehensive Income. Approximately $5.4 million of losses (net of tax) were reclassified to interest expense from Accumulated Other Comprehensive Loss during each of the nine month periods ended September 30, 2010 and 2009. As of September 30, 2010, we estimate that $2.4 million of net derivative losses (net of tax) included in Accumulated Other Comprehensive Loss will be reclassified into interest expense within the next 12 months. There was no hedge ineffectiveness for the nine months ended September 30, 2010 and 2009. </div> </div> Note 6. Derivative Instruments and Hedging Activities We are exposed to market risks, including the effect of changes in interest rates, foreign currency false false false us-types:textBlockItemType textblock This element can be used to disclose the entity's entire derivative instruments and hedging activities disclosure as a single block of text. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising there from, and the amounts of and methodologies and assumptions used in determining the amounts of such items. 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