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Year Ended | Year Ended | ||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||
Rhiag | PGW (1) | Other Acquisitions | Total | All Acquisitions | |||||||||||||||
Receivables | $ | 230,670 | $ | 136,523 | $ | 13,216 | $ | 380,409 | $ | 29,628 | |||||||||
Receivable reserves | (28,242 | ) | (7,135 | ) | (794 | ) | (36,171 | ) | (3,926 | ) | |||||||||
Inventories (2) | 239,529 | 169,159 | 62,223 | 470,911 | 79,646 | ||||||||||||||
Prepaid expenses and other current assets | 10,793 | 42,573 | 4,445 | 57,811 | 3,337 | ||||||||||||||
Property and equipment | 56,774 | 225,645 | 17,140 | 299,559 | 11,989 | ||||||||||||||
Goodwill | 585,415 | 205,058 | 52,336 | 842,809 | 92,175 | ||||||||||||||
Other intangibles | 429,360 | 37,954 | 2,537 | 469,851 | 9,926 | ||||||||||||||
Other assets (3) | 2,092 | 57,671 | (133 | ) | 59,630 | 5,166 | |||||||||||||
Deferred income taxes | (110,791 | ) | 17,506 | (1,000 | ) | (94,285 | ) | 4,102 | |||||||||||
Current liabilities assumed | (239,665 | ) | (168,332 | ) | (42,290 | ) | (450,287 | ) | (39,191 | ) | |||||||||
Debt assumed | (550,843 | ) | (4,027 | ) | (2,378 | ) | (557,248 | ) | (2,365 | ) | |||||||||
Other noncurrent liabilities assumed | (23,085 | ) | (50,847 | ) | (103 | ) | (74,035 | ) | (2,651 | ) | |||||||||
Other purchase price obligations | — | — | (6,698 | ) | (6,698 | ) | (21,199 | ) | |||||||||||
Notes issued | — | — | (4,087 | ) | (4,087 | ) | (4,296 | ) | |||||||||||
Settlement of pre-existing balances | (591 | ) | — | (32 | ) | (623 | ) | (1,073 | ) | ||||||||||
Gain on bargain purchase | — | — | (8,207 | ) | (8,207 | ) | — | ||||||||||||
Cash used in acquisitions, net of cash acquired | $ | 601,416 | $ | 661,748 | $ | 86,175 | $ | 1,349,339 | $ | 161,268 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenue, as reported | $ | 8,584,031 | $ | 7,192,633 | $ | 6,740,064 | |||||
Revenue of purchased businesses for the period prior to acquisition: | |||||||||||
Rhiag | 213,376 | 994,903 | — | ||||||||
PGW (1) | 102,540 | 339,012 | — | ||||||||
Keystone Specialty | — | — | 3,443 | ||||||||
Other acquisitions | 265,717 | 615,140 | 676,965 | ||||||||
Pro forma revenue | $ | 9,165,664 | $ | 9,141,688 | $ | 7,420,472 | |||||
Income from continuing operations, as reported | $ | 456,123 | $ | 423,223 | $ | 381,519 | |||||
Income from continuing operations of purchased businesses for the period prior to acquisition, and pro forma purchase accounting adjustments: | |||||||||||
Rhiag | (662 | ) | 10,310 | — | |||||||
PGW (1),(2) | 7,574 | 3,334 | — | ||||||||
Keystone Specialty | — | — | 521 | ||||||||
Other acquisitions (3) | (807 | ) | 15,266 | 18,371 | |||||||
Acquisition related expenses, net of tax (4) | 11,034 | 1,830 | 2,295 | ||||||||
Pro forma income from continuing operations | $ | 473,262 | $ | 453,963 | $ | 402,706 | |||||
Earnings per share from continuing operations, basic - as reported | $ | 1.49 | $ | 1.39 | $ | 1.26 | |||||
Effect of purchased businesses for the period prior to acquisition: | |||||||||||
Rhiag | (0.00) | 0.03 | — | ||||||||
PGW (1),(2) | 0.02 | 0.01 | — | ||||||||
Keystone Specialty | — | — | 0.00 | ||||||||
Other acquisitions | (0.00) | 0.05 | 0.06 | ||||||||
Acquisition related expenses, net of tax (4) | 0.04 | 0.01 | 0.01 | ||||||||
Pro forma earnings per share from continuing operations, basic (5) | $ | 1.54 | $ | 1.49 | $ | 1.33 | |||||
Earnings per share from continuing operations, diluted - as reported | $ | 1.47 | $ | 1.38 | $ | 1.25 | |||||
Effect of purchased businesses for the period prior to acquisition: | |||||||||||
Rhiag | (0.00) | 0.03 | — | ||||||||
PGW (1),(2) | 0.02 | 0.01 | — | ||||||||
Keystone Specialty | — | — | 0.00 | ||||||||
Other acquisitions | (0.00) | 0.05 | 0.06 | ||||||||
Acquisition related expenses, net of tax (4) | 0.04 | 0.01 | 0.01 | ||||||||
Pro forma earnings per share from continuing operations, diluted (5) | $ | 1.53 | $ | 1.48 | $ | 1.31 |
|
Period from April 21 to December 31, | ||||
2016 | ||||
Revenue | $ | 498,233 | ||
Cost of goods sold | (424,161 | ) | ||
Operating expenses | (22,330 | ) | ||
Impairment on net assets of discontinued operations | (26,677 | ) | (1) | |
Operating income | 25,065 | |||
Interest and other expenses, net | (9,136 | ) | (2) | |
Income from discontinued operations before taxes | 15,929 | |||
Provision for taxes | (8,252 | ) | ||
Equity in earnings of unconsolidated subsidiaries | 175 | |||
Income from discontinued operations, net of tax | $ | 7,852 |
Period from April 21 to December 31, | |||
2016 | |||
Non-cash operating activities: | |||
Depreciation and amortization | $ | 7,752 | |
Impairment on net assets of discontinued operations | 26,677 | ||
Deferred income taxes | (4,516 | ) | |
Capital expenditures | (24,156 | ) | |
Investments in unconsolidated subsidiaries | (4,400 | ) |
December 31, 2016 | |||
Cash and equivalents | $ | 7,116 | |
Receivables, net | 77,442 | ||
Inventories | 71,952 | ||
Prepaid expenses and other current assets | 42,426 | ||
Property, plant and equipment, net | 199,136 | ||
Other assets | 64,166 | ||
Valuation allowance | (5,598 | ) | |
Total assets from discontinued operations | $ | 456,640 | |
Accounts payable | $ | 72,696 | |
Other current liabilities | 37,104 | ||
Long-term obligations | 1,648 | ||
Other noncurrent liabilities (includes pension and post-retirement obligations) | 33,656 | ||
Total liabilities from discontinued operations | 145,104 | ||
Net assets from discontinued operations | $ | 311,536 |
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December 31, | |||||||
2016 | 2015 | ||||||
Aftermarket and refurbished products | $ | 1,540,257 | $ | 1,146,162 | |||
Salvage and remanufactured products | 394,980 | 410,390 | |||||
Total inventories | $ | 1,935,237 | $ | 1,556,552 |
Land improvements | 10-20 years |
Buildings and improvements | 20-40 years |
Machinery and equipment | 3-20 years |
Computer equipment and software | 3-10 years |
Vehicles and trailers | 3-10 years |
Furniture and fixtures | 5-7 years |
December 31, | |||||||
2016 | 2015 | ||||||
Land and improvements | $ | 127,211 | $ | 118,420 | |||
Buildings and improvements | 209,773 | 183,480 | |||||
Machinery and equipment | 429,446 | 355,313 | |||||
Computer equipment and software | 120,316 | 130,363 | |||||
Vehicles and trailers | 138,263 | 101,201 | |||||
Furniture and fixtures | 28,405 | 24,332 | |||||
Leasehold improvements | 152,356 | 140,732 | |||||
1,205,770 | 1,053,841 | ||||||
Less—Accumulated depreciation | (495,644 | ) | (437,946 | ) | |||
Construction in progress | 101,450 | 80,672 | |||||
Total property and equipment, net | $ | 811,576 | $ | 696,567 |
North America | Europe | Specialty | Total | ||||||||||||
Balance as of January 1, 2014 | $ | 1,358,937 | $ | 578,507 | $ | — | $ | 1,937,444 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 43,752 | 91,916 | 280,035 | 415,703 | |||||||||||
Exchange rate effects | (10,657 | ) | (53,604 | ) | 9 | (64,252 | ) | ||||||||
Balance as of December 31, 2014 | $ | 1,392,032 | $ | 616,819 | $ | 280,044 | $ | 2,288,895 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 72,355 | 21,217 | (1,397 | ) | 92,175 | ||||||||||
Exchange rate effects | (18,537 | ) | (43,554 | ) | 267 | (61,824 | ) | ||||||||
Balance as of December 31, 2015 | $ | 1,445,850 | $ | 594,482 | $ | 278,914 | $ | 2,319,246 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 226,483 | 614,437 | 1,889 | 842,809 | |||||||||||
Exchange rate effects | 1,818 | (108,943 | ) | (161 | ) | (107,286 | ) | ||||||||
Balance as of December 31, 2016 | $ | 1,674,151 | $ | 1,099,976 | $ | 280,642 | $ | 3,054,769 |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Trade names and trademarks | $ | 286,008 | $ | (51,104 | ) | $ | 234,904 | $ | 172,219 | $ | (43,458 | ) | $ | 128,761 | |||||||||
Customer and supplier relationships | 395,284 | (92,079 | ) | 303,205 | 95,508 | (41,007 | ) | 54,501 | |||||||||||||||
Software and other technology related assets | 77,329 | (35,648 | ) | 41,681 | 44,500 | (17,844 | ) | 26,656 | |||||||||||||||
Covenants not to compete | 11,726 | (7,285 | ) | 4,441 | 10,774 | (5,575 | ) | 5,199 | |||||||||||||||
$ | 770,347 | $ | (186,116 | ) | $ | 584,231 | $ | 323,001 | $ | (107,884 | ) | $ | 215,117 |
Year Ended | Year Ended | ||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||
Rhiag | PGW | Other Acquisitions | Total | All Acquisitions (1) | |||||||||||||||
Trade names and trademarks | $ | 127,351 | $ | 5,500 | $ | 1,015 | $ | 133,866 | $ | 3,555 | |||||||||
Customer and supplier relationships | 291,893 | 29,700 | — | 321,593 | 4,601 | ||||||||||||||
Software and other technology related assets | 10,116 | 1,154 | 1,420 | 12,690 | 1,213 | ||||||||||||||
Covenants not to compete | — | 1,600 | 102 | 1,702 | 557 | ||||||||||||||
$ | 429,360 | $ | 37,954 | $ | 2,537 | $ | 469,851 | $ | 9,926 |
Method of Amortization | Useful Life | ||
Trade names and trademarks | Straight-line | 4-30 years | |
Customer and supplier relationships | Accelerated | 4-20 years | |
Software and other technology related assets | Straight-line | 3-6 years | |
Covenants not to compete | Straight-line | 1-5 years |
Balance as of January 1, 2015 | $ | 14,881 | |
Warranty expense | 33,727 | ||
Warranty claims | (31,245 | ) | |
Balance as of December 31, 2015 | $ | 17,363 | |
Warranty expense | 32,096 | ||
Warranty claims | (29,825 | ) | |
Balance as of December 31, 2016 | $ | 19,634 |
|
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Number Outstanding | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) (1) | |||||||||
Unvested as of January 1, 2016 | 1,981,292 | $ | 24.19 | |||||||||
Granted | 976,318 | $ | 29.05 | |||||||||
Vested | (996,607 | ) | $ | 22.30 | ||||||||
Forfeited / Canceled | (87,266 | ) | $ | 27.15 | ||||||||
Unvested as of December 31, 2016 | 1,873,737 | $ | 27.58 | |||||||||
Expected to vest after December 31, 2016 | 1,723,579 | $ | 27.45 | 2.4 | $ | 52,828 |
Number Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) (1) | |||||||||
Balance as of January 1, 2016 | 3,765,952 | $ | 8.63 | |||||||||
Exercised | (1,124,317 | ) | $ | 7.08 | $ | 27,844 | ||||||
Forfeited / Canceled | (18,418 | ) | $ | 24.14 | ||||||||
Balance as of December 31, 2016 | 2,623,217 | $ | 9.19 | 2.3 | $ | 56,427 | ||||||
Exercisable as of December 31, 2016 | 2,543,299 | $ | 8.46 | 2.3 | $ | 56,427 | ||||||
Exercisable as of December 31, 2016 and expected to vest thereafter | 2,623,217 | $ | 9.19 | 2.3 | $ | 56,427 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
RSUs | $ | 22,183 | $ | 21,058 | $ | 18,965 | |||||
Stock options and other | 162 | 278 | 3,056 | ||||||||
Total stock-based compensation expense | $ | 22,345 | $ | 21,336 | $ | 22,021 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cost of goods sold | $ | 407 | $ | 358 | $ | 410 | |||||
Facility and warehouse expenses | 3,980 | 2,271 | 2,195 | ||||||||
Selling, general and administrative expenses | 17,958 | 18,707 | 19,416 | ||||||||
22,345 | 21,336 | 22,021 | |||||||||
Income tax benefit | (8,268 | ) | (8,221 | ) | (8,478 | ) | |||||
Total stock-based compensation expense, net of tax | $ | 14,077 | $ | 13,115 | $ | 13,543 |
RSUs | |||
2017 | $ | 15,356 | |
2018 | 10,379 | ||
2019 | 6,261 | ||
2020 | 3,260 | ||
2021 | 353 | ||
Total unrecognized compensation expense | $ | 35,609 |
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Foreign Currency Translation | Unrealized (Loss)Gain on Cash Flow Hedges | Unrealized Gain (Loss) on Pension Plans | Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Balance at January 1, 2014 | $ | 24,906 | $ | (5,596 | ) | $ | 701 | $ | 20,011 | |||||||
Pretax loss | (51,979 | ) | (1,586 | ) | (13,506 | ) | (67,071 | ) | ||||||||
Income tax effect | — | 382 | 3,179 | 3,561 | ||||||||||||
Reclassification of unrealized loss (gain) | — | 5,200 | (166 | ) | 5,034 | |||||||||||
Reclassification of deferred income taxes | — | (1,801 | ) | 41 | (1,760 | ) | ||||||||||
Balance at December 31, 2014 | $ | (27,073 | ) | $ | (3,401 | ) | $ | (9,751 | ) | $ | (40,225 | ) | ||||
Pretax (loss) income | (69,817 | ) | (1,664 | ) | 2,245 | (69,236 | ) | |||||||||
Income tax effect | — | 538 | (561 | ) | (23 | ) | ||||||||||
Reclassification of unrealized loss | — | 5,366 | 559 | 5,925 | ||||||||||||
Reclassification of deferred income taxes | — | (1,771 | ) | (140 | ) | (1,911 | ) | |||||||||
Balance at December 31, 2015 | $ | (96,890 | ) | $ | (932 | ) | $ | (7,648 | ) | $ | (105,470 | ) | ||||
Pretax (loss) income | (175,639 | ) | 12,382 | 7,175 | (156,082 | ) | ||||||||||
Income tax effect | — | (4,581 | ) | (2,636 | ) | (7,217 | ) | |||||||||
Reclassification of unrealized loss (gain) | — | 1,789 | 496 | 2,285 | ||||||||||||
Reclassification of deferred income taxes | — | (567 | ) | (124 | ) | (691 | ) | |||||||||
Balance at December 31, 2016 | $ | (272,529 | ) | $ | 8,091 | $ | (2,737 | ) | $ | (267,175 | ) |
|
December 31, | |||||||
2016 | 2015 | ||||||
Senior secured credit agreement: | |||||||
Term loans payable | $ | 732,684 | $ | 410,625 | |||
Revolving credit facilities | 1,358,220 | 480,481 | |||||
Senior notes | 600,000 | 600,000 | |||||
Euro notes | 525,850 | — | |||||
Receivables securitization facility | 100,000 | 63,000 | |||||
Notes payable through October 2025 at weighted average interest rates of 2.1% and 2.2%, respectively | 11,808 | 16,104 | |||||
Other long-term debt at weighted average interest rates of 2.4% and 2.4%, respectively | 37,125 | 29,485 | |||||
Total debt | 3,365,687 | 1,599,695 | |||||
Less: long-term debt issuance costs | (21,611 | ) | (13,533 | ) | |||
Less: current debt issuance costs | (2,305 | ) | (1,460 | ) | |||
Total debt, net of debt issuance costs | 3,341,771 | 1,584,702 | |||||
Less: current maturities, net of debt issuance costs | (66,109 | ) | (56,034 | ) | |||
Long term debt, net of debt issuance costs | $ | 3,275,662 | $ | 1,528,668 |
2017 | $ | 68,414 | |
2018 | 42,553 | ||
2019 | 140,594 | ||
2020 | 39,002 | ||
2021 | 1,942,680 | ||
Thereafter | 1,132,444 | ||
Total debt (1) | $ | 3,365,687 | |
(1) The total debt amounts presented above exclude debt issuance costs totaling $23.9 million as of December 31, 2016. |
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Notional Amount | Fair Value at December 31, 2016 (USD) | Fair Value at December 31, 2015 (USD) | |||||||||||||||||
December 31, 2016 | December 31, 2015 | Other Assets | Other Noncurrent Liabilities | Other Accrued Expenses | |||||||||||||||
Interest rate swap agreements | |||||||||||||||||||
USD denominated | $ | 590,000 | $ | 170,000 | $ | 16,421 | $ | — | $ | 858 | |||||||||
GBP denominated | £ | — | £ | 50,000 | — | — | 465 | ||||||||||||
CAD denominated | C$ | — | C$ | 25,000 | — | — | 24 | ||||||||||||
Cross currency swap agreements | |||||||||||||||||||
USD/euro | $ | 422,408 | $ | — | 1,486 | 3,128 | — | ||||||||||||
Total cash flow hedges | $ | 17,907 | $ | 3,128 | $ | 1,347 |
|
Balance as of December 31, 2016 | Fair Value Measurements as of December 31, 2016 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||
Cash surrender value of life insurance | $ | 36,131 | $ | — | $ | 36,131 | $ | — | |||||||
Interest rate swaps | 17,907 | — | 17,907 | — | |||||||||||
Total Assets | $ | 54,038 | $ | — | $ | 54,038 | $ | — | |||||||
Liabilities: | |||||||||||||||
Contingent consideration liabilities | $ | 3,162 | $ | — | $ | — | $ | 3,162 | |||||||
Deferred compensation liabilities | 36,865 | — | 36,865 | — | |||||||||||
Foreign currency forward contracts | 3,128 | — | 3,128 | — | |||||||||||
Total Liabilities | $ | 43,155 | $ | — | $ | 39,993 | $ | 3,162 |
Balance as of December 31, 2015 | Fair Value Measurements as of December 31, 2015 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||
Cash surrender value of life insurance | $ | 29,782 | $ | — | $ | 29,782 | $ | — | |||||||
Total Assets | $ | 29,782 | $ | — | $ | 29,782 | $ | — | |||||||
Liabilities: | |||||||||||||||
Contingent consideration liabilities | $ | 4,584 | $ | — | $ | — | $ | 4,584 | |||||||
Deferred compensation liabilities | 30,336 | — | 30,336 | — | |||||||||||
Interest rate swaps | 1,347 | — | 1,347 | — | |||||||||||
Total Liabilities | $ | 36,267 | $ | — | $ | 31,683 | $ | 4,584 |
|
Years ending December 31: | |||
2017 | $ | 200,450 | |
2018 | 168,926 | ||
2019 | 136,462 | ||
2020 | 110,063 | ||
2021 | 82,494 | ||
Thereafter | 486,199 | ||
Future Minimum Lease Payments | $ | 1,184,594 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current: | |||||||||||
Federal | $ | 159,547 | $ | 138,432 | $ | 144,924 | |||||
State | 27,120 | 25,952 | 24,052 | ||||||||
Foreign | 45,545 | 32,931 | 29,046 | ||||||||
$ | 232,212 | $ | 197,315 | $ | 198,022 | ||||||
Deferred: | |||||||||||
Federal | $ | 1,169 | $ | 22,233 | $ | 9,321 | |||||
State | 2,131 | 1,212 | (179 | ) | |||||||
Foreign | (14,946 | ) | (1,057 | ) | (2,900 | ) | |||||
$ | (11,646 | ) | $ | 22,388 | $ | 6,242 | |||||
Provision for income taxes | $ | 220,566 | $ | 219,703 | $ | 204,264 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Domestic | $ | 513,844 | $ | 478,819 | $ | 460,637 | |||||
Foreign | 163,437 | 170,211 | 127,251 | ||||||||
$ | 677,281 | $ | 649,030 | $ | 587,888 |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
U.S. federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes, net of state credits and federal tax impact | 2.7 | % | 2.9 | % | 2.8 | % | ||
Impact of international operations | (3.2 | )% | (4.1 | )% | (3.6 | )% | ||
Notional interest deductions | (2.5 | )% | — | % | — | % | ||
Excess tax benefits from stock-based compensation (1) | (1.6 | )% | — | % | — | % | ||
Non-deductible expenses | 1.3 | % | 0.8 | % | 0.5 | % | ||
Other, net | 0.9 | % | (0.7 | )% | — | % | ||
Effective tax rate | 32.6 | % | 33.9 | % | 34.7 | % |
December 31, | |||||||
2016 | 2015 | ||||||
Deferred Tax Assets: | |||||||
Accrued expenses and reserves | $ | 62,059 | $ | 46,837 | |||
Qualified and nonqualified retirement plans | 36,626 | 14,130 | |||||
Inventory | 35,565 | 27,184 | |||||
Accounts receivable | 19,046 | 13,971 | |||||
Interest deduction carryforwards | 9,806 | — | |||||
Stock-based compensation | 9,687 | 11,096 | |||||
Net operating loss carryforwards | 7,858 | 8,946 | |||||
Other | 7,699 | 8,212 | |||||
188,346 | 130,376 | ||||||
Less: valuation allowance | (11,252 | ) | (3,880 | ) | |||
Total deferred tax assets | $ | 177,094 | $ | 126,496 | |||
Deferred Tax Liabilities: | |||||||
Goodwill and other intangible assets | $ | 222,476 | $ | 141,442 | |||
Property and equipment | 72,231 | 67,065 | |||||
Trade name | 59,002 | 36,532 | |||||
Other | 19,439 | 5,342 | |||||
Total deferred tax liabilities | $ | 373,148 | $ | 250,381 | |||
Net deferred tax liability | $ | (196,054 | ) | $ | (123,885 | ) |
December 31, | |||||||
2016 | 2015 | ||||||
Noncurrent deferred tax assets | $ | 3,603 | $ | 3,354 | |||
Noncurrent deferred tax liabilities | 199,657 | 127,239 |
2016 | 2015 | 2014 | |||||||||
Balance at January 1 | $ | 2,273 | $ | 2,630 | $ | 1,445 | |||||
Additions for acquired tax positions | — | 80 | 2,322 | ||||||||
Additions based on tax positions related to the current year | 5 | 302 | 302 | ||||||||
Reductions for tax positions of prior years | — | (743 | ) | — | |||||||
Lapse of statutes of limitations | (132 | ) | (119 | ) | (134 | ) | |||||
Settlements with taxing authorities | — | — | (1,182 | ) | |||||||
Currency exchange rate fluctuations | — | 123 | (123 | ) | |||||||
Balance at December 31 | $ | 2,146 | $ | 2,273 | $ | 2,630 |
|
North America | Europe | Specialty | Eliminations | Consolidated | |||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 4,470,900 | $ | 2,920,470 | $ | 1,192,661 | $ | — | $ | 8,584,031 | |||||||||
Intersegment | 739 | — | 4,048 | (4,787 | ) | — | |||||||||||||
Total segment revenue | $ | 4,471,639 | $ | 2,920,470 | $ | 1,196,709 | $ | (4,787 | ) | $ | 8,584,031 | ||||||||
Segment EBITDA | $ | 596,333 | $ | 283,608 | $ | 125,039 | $ | — | $ | 1,004,980 | |||||||||
Depreciation and amortization (1) | 81,395 | 94,979 | 21,960 | — | 198,334 | ||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 4,145,998 | $ | 1,995,385 | $ | 1,051,250 | $ | — | $ | 7,192,633 | |||||||||
Intersegment | 835 | 70 | 3,334 | (4,239 | ) | — | |||||||||||||
Total segment revenue | $ | 4,146,833 | $ | 1,995,455 | $ | 1,054,584 | $ | (4,239 | ) | $ | 7,192,633 | ||||||||
Segment EBITDA | $ | 547,405 | $ | 200,563 | $ | 106,561 | $ | — | $ | 854,529 | |||||||||
Depreciation and amortization (1) | 70,369 | 36,446 | 21,377 | — | 128,192 | ||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 4,088,701 | $ | 1,846,155 | $ | 805,208 | $ | — | $ | 6,740,064 | |||||||||
Intersegment | 589 | — | 1,807 | (2,396 | ) | — | |||||||||||||
Total segment revenue | $ | 4,089,290 | $ | 1,846,155 | $ | 807,015 | $ | (2,396 | ) | $ | 6,740,064 | ||||||||
Segment EBITDA | $ | 543,943 | $ | 167,155 | $ | 79,453 | $ | — | $ | 790,551 | |||||||||
Depreciation and amortization (1) | 70,434 | 34,391 | 20,612 | — | 125,437 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income | $ | 463,975 | $ | 423,223 | $ | 381,519 | |||||
Subtract: | |||||||||||
Income from discontinued operations, net of tax | 7,852 | — | — | ||||||||
Income from continuing operations | 456,123 | 423,223 | 381,519 | ||||||||
Add: | |||||||||||
Depreciation and amortization | 191,433 | 122,120 | 120,719 | ||||||||
Depreciation and amortization - cost of goods sold | 6,901 | 6,072 | 4,718 | ||||||||
Interest expense, net | 87,682 | 57,342 | 63,947 | ||||||||
Loss on debt extinguishment | 26,650 | — | 324 | ||||||||
Provision for income taxes | 220,566 | 219,703 | 204,264 | ||||||||
EBITDA | 989,355 | 828,460 | 775,491 | ||||||||
Subtract: | |||||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (592 | ) | (6,104 | ) | (2,105 | ) | |||||
Gains on foreign exchange contracts- acquisition related (1) | 18,342 | — | — | ||||||||
Gain on bargain purchase (2) | 8,207 | — | — | ||||||||
Add: | |||||||||||
Restructuring and acquisition related expenses(3) | 37,762 | 19,511 | 14,806 | ||||||||
Inventory step-up adjustment - acquisition related (4) | 3,614 | — | — | ||||||||
Change in fair value of contingent consideration liabilities | 206 | 454 | (1,851 | ) | |||||||
Segment EBITDA | $ | 1,004,980 | $ | 854,529 | $ | 790,551 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Capital Expenditures | |||||||||||
North America | $ | 91,618 | $ | 72,048 | $ | 86,172 | |||||
Europe | 77,689 | 79,072 | 44,896 | ||||||||
Specialty | 13,611 | 19,370 | 9,882 | ||||||||
Discontinued operations | 24,156 | — | — | ||||||||
Total capital expenditures | $ | 207,074 | $ | 170,490 | $ | 140,950 |
December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Receivables, net | |||||||||||
North America (1) | $ | 352,930 | $ | 314,743 | $ | 322,713 | |||||
Europe (1) | 443,281 | 215,710 | 227,987 | ||||||||
Specialty | 64,338 | 59,707 | 50,722 | ||||||||
Total receivables, net | 860,549 | 590,160 | 601,422 | ||||||||
Inventories | |||||||||||
North America (1) | 917,311 | 847,787 | 826,429 | ||||||||
Europe (1) | 718,729 | 427,323 | 402,488 | ||||||||
Specialty | 299,197 | 281,442 | 204,930 | ||||||||
Total inventories | 1,935,237 | 1,556,552 | 1,433,847 | ||||||||
Property and Equipment, net | |||||||||||
North America (1) | 506,274 | 467,961 | 456,288 | ||||||||
Europe (1) | 247,910 | 175,455 | 128,309 | ||||||||
Specialty | 57,392 | 53,151 | 45,390 | ||||||||
Total property and equipment, net | 811,576 | 696,567 | 629,987 | ||||||||
Equity Method Investments | |||||||||||
North America | 336 | 628 | 536 | ||||||||
Europe (2) | 183,131 | 2,127 | 7,592 | ||||||||
Total equity method investments | 183,467 | 2,755 | 8,128 | ||||||||
Other unallocated assets | 4,512,370 | 2,801,803 | 2,802,355 | ||||||||
Total assets | $ | 8,303,199 | $ | 5,647,837 | $ | 5,475,739 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenue | |||||||||||
United States | $ | 5,226,918 | $ | 4,831,875 | $ | 4,499,743 | |||||
United Kingdom | 1,390,775 | 1,382,432 | 1,321,786 | ||||||||
Other countries | 1,966,338 | 978,326 | 918,535 | ||||||||
Total revenue | $ | 8,584,031 | $ | 7,192,633 | $ | 6,740,064 |
December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Long-lived Assets | |||||||||||
United States | $ | 531,425 | $ | 493,300 | $ | 469,450 | |||||
United Kingdom | 159,689 | 138,546 | 92,813 | ||||||||
Other countries | 120,462 | 64,721 | 67,724 | ||||||||
Total long-lived assets | $ | 811,576 | $ | 696,567 | $ | 629,987 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Aftermarket, other new and refurbished products | $ | 6,441,160 | $ | 5,116,373 | $ | 4,613,454 | |||||
Recycled, remanufactured and related products and services | 1,703,485 | 1,597,578 | 1,473,305 | ||||||||
Other | 439,386 | 478,682 | 653,305 | ||||||||
Total revenue | $ | 8,584,031 | $ | 7,192,633 | $ | 6,740,064 |
|
Quarter Ended | |||||||||||||||
(In thousands, except per share data) | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||
2016 | |||||||||||||||
Revenue | $ | 2,150,406 | $ | 2,207,343 | $ | 2,304,806 | $ | 1,921,476 | |||||||
Gross margin | 830,006 | 855,444 | 905,816 | 760,437 | |||||||||||
Operating income | 161,880 | 183,401 | 232,445 | 185,672 | |||||||||||
Income from continuing operations | 96,298 | 109,844 | 137,810 | 112,171 | |||||||||||
(Loss) income from discontinued operations | (9,967 | ) | 12,844 | 4,975 | — | ||||||||||
Net income (1) | 86,331 | 122,688 | 142,785 | 112,171 | |||||||||||
Basic earnings per share from continuing operations (1),(2) | $ | 0.31 | $ | 0.36 | $ | 0.45 | $ | 0.37 | |||||||
Diluted earnings per share from continuing operations (1),(2) | $ | 0.31 | $ | 0.35 | $ | 0.45 | $ | 0.36 |
Quarter Ended | |||||||||||||||
(In thousands, except per share data) | Dec. 31 | Sep. 30 | Jun. 30 | Mar. 31 | |||||||||||
2015 | |||||||||||||||
Revenue | $ | 1,748,919 | $ | 1,831,732 | $ | 1,838,070 | $ | 1,773,912 | |||||||
Gross margin | 697,327 | 712,779 | 723,944 | 699,479 | |||||||||||
Operating income | 151,671 | 166,745 | 200,285 | 185,926 | |||||||||||
Net income | 95,060 | 101,346 | 119,722 | 107,095 | |||||||||||
Basic earnings per share from continuing operations (2) | $ | 0.31 | $ | 0.33 | $ | 0.39 | $ | 0.35 | |||||||
Diluted earnings per share from continuing operations (2) | $ | 0.31 | $ | 0.33 | $ | 0.39 | $ | 0.35 |
(1) | During the third quarter of 2016, the Company elected to early adopt ASU 2016-09 effective January 1, 2016. The quarterly amounts above reflect the impact of adoption. See Note 4, "Summary of Significant Accounting Policies" for further information. |
(2) | The sum of the quarters may not equal the total of the respective year's earnings per share on either a basic or diluted basis due to changes in weighted average shares outstanding throughout the year. |
|
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 5,467,430 | $ | 3,301,503 | $ | (184,902 | ) | $ | 8,584,031 | ||||||||
Cost of goods sold | — | 3,313,503 | 2,103,727 | (184,902 | ) | 5,232,328 | |||||||||||||
Gross margin | — | 2,153,927 | 1,197,776 | — | 3,351,703 | ||||||||||||||
Facility and warehouse expenses | — | 475,487 | 213,431 | — | 688,918 | ||||||||||||||
Distribution expenses | — | 453,192 | 230,620 | — | 683,812 | ||||||||||||||
Selling, general and administrative expenses | 34,163 | 521,909 | 430,308 | — | 986,380 | ||||||||||||||
Restructuring and acquisition related expenses | — | 21,162 | 16,600 | — | 37,762 | ||||||||||||||
Depreciation and amortization | 132 | 94,165 | 97,136 | — | 191,433 | ||||||||||||||
Operating (loss) income | (34,295 | ) | 588,012 | 209,681 | — | 763,398 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense | 59,415 | 547 | 28,301 | — | 88,263 | ||||||||||||||
Intercompany interest (income) expense, net | (27,470 | ) | 17,124 | 10,346 | — | — | |||||||||||||
Loss on debt extinguishment | 2,894 | — | 23,756 | — | 26,650 | ||||||||||||||
Gain on foreign exchange contracts - acquisition related | (18,342 | ) | — | — | — | (18,342 | ) | ||||||||||||
Gain on bargain purchase | — | — | (8,207 | ) | — | (8,207 | ) | ||||||||||||
Interest and other expense (income), net | 470 | (3,773 | ) | 1,056 | — | (2,247 | ) | ||||||||||||
Total other expense, net | 16,967 | 13,898 | 55,252 | — | 86,117 | ||||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | (51,262 | ) | 574,114 | 154,429 | — | 677,281 | |||||||||||||
(Benefit) provision for income taxes | (20,498 | ) | 213,794 | 27,270 | — | 220,566 | |||||||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (795 | ) | — | 203 | — | (592 | ) | ||||||||||||
Equity in earnings of subsidiaries | 487,682 | 22,314 | — | (509,996 | ) | — | |||||||||||||
Income from continuing operations | 456,123 | 382,634 | 127,362 | (509,996 | ) | 456,123 | |||||||||||||
Income from discontinued operations, net of tax | 7,852 | 7,852 | 3,285 | (11,137 | ) | 7,852 | |||||||||||||
Net income | $ | 463,975 | $ | 390,486 | $ | 130,647 | $ | (521,133 | ) | $ | 463,975 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 4,965,355 | $ | 2,357,655 | $ | (130,377 | ) | $ | 7,192,633 | ||||||||
Cost of goods sold | — | 3,010,820 | 1,478,661 | (130,377 | ) | 4,359,104 | |||||||||||||
Gross margin | — | 1,954,535 | 878,994 | — | 2,833,529 | ||||||||||||||
Facility and warehouse expenses | — | 408,828 | 147,213 | — | 556,041 | ||||||||||||||
Distribution expenses | — | 408,112 | 194,785 | — | 602,897 | ||||||||||||||
Selling, general and administrative expenses | 32,946 | 490,530 | 304,857 | — | 828,333 | ||||||||||||||
Restructuring and acquisition related expenses | — | 13,962 | 5,549 | — | 19,511 | ||||||||||||||
Depreciation and amortization | 154 | 82,058 | 39,908 | — | 122,120 | ||||||||||||||
Operating (loss) income | (33,100 | ) | 551,045 | 186,682 | — | 704,627 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense | 47,626 | 669 | 9,565 | — | 57,860 | ||||||||||||||
Intercompany interest (income) expense, net | (41,904 | ) | 28,944 | 12,960 | — | — | |||||||||||||
Interest and other expense (income), net | 99 | (7,414 | ) | 5,052 | — | (2,263 | ) | ||||||||||||
Total other expense, net | 5,821 | 22,199 | 27,577 | — | 55,597 | ||||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | (38,921 | ) | 528,846 | 159,105 | — | 649,030 | |||||||||||||
(Benefit) provision for income taxes | (16,054 | ) | 205,176 | 30,581 | — | 219,703 | |||||||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (1,000 | ) | 59 | (5,163 | ) | — | (6,104 | ) | |||||||||||
Equity in earnings of subsidiaries | 447,090 | 24,632 | — | (471,722 | ) | — | |||||||||||||
Net income | $ | 423,223 | $ | 348,361 | $ | 123,361 | $ | (471,722 | ) | $ | 423,223 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 4,649,391 | $ | 2,221,831 | $ | (131,158 | ) | $ | 6,740,064 | ||||||||
Cost of goods sold | — | 2,813,427 | 1,405,882 | (131,158 | ) | 4,088,151 | |||||||||||||
Gross margin | — | 1,835,964 | 815,949 | — | 2,651,913 | ||||||||||||||
Facility and warehouse expenses | — | 382,937 | 143,354 | — | 526,291 | ||||||||||||||
Distribution expenses | — | 389,430 | 187,911 | — | 577,341 | ||||||||||||||
Selling, general and administrative expenses | 25,770 | 460,516 | 276,602 | — | 762,888 | ||||||||||||||
Restructuring and acquisition related expenses | — | 8,628 | 6,178 | — | 14,806 | ||||||||||||||
Depreciation and amortization | 218 | 81,253 | 39,248 | — | 120,719 | ||||||||||||||
Operating (loss) income | (25,988 | ) | 513,200 | 162,656 | — | 649,868 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense | 50,636 | 635 | 13,271 | — | 64,542 | ||||||||||||||
Intercompany interest (income) expense, net | (48,556 | ) | 23,865 | 24,691 | — | — | |||||||||||||
Loss on debt extinguishment | 324 | — | — | — | 324 | ||||||||||||||
Interest and other expense (income), net | 230 | (8,359 | ) | 5,243 | — | (2,886 | ) | ||||||||||||
Total other expense, net | 2,634 | 16,141 | 43,205 | — | 61,980 | ||||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | (28,622 | ) | 497,059 | 119,451 | — | 587,888 | |||||||||||||
(Benefit) provision for income taxes | (10,536 | ) | 190,456 | 24,344 | — | 204,264 | |||||||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | — | 40 | (2,145 | ) | — | (2,105 | ) | ||||||||||||
Equity in earnings of subsidiaries | 399,605 | 28,846 | — | (428,451 | ) | — | |||||||||||||
Net income | $ | 381,519 | $ | 335,489 | $ | 92,962 | $ | (428,451 | ) | $ | 381,519 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 463,975 | $ | 390,486 | $ | 130,647 | $ | (521,133 | ) | $ | 463,975 | ||||||||
Other comprehensive (loss) income: | |||||||||||||||||||
Foreign currency translation | (175,639 | ) | (48,914 | ) | (177,911 | ) | 226,825 | (175,639 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 9,023 | 133 | 389 | (522 | ) | 9,023 | |||||||||||||
Net change in unrealized gains/losses on pension plans, net of tax | 4,911 | 3,962 | 1,061 | (5,023 | ) | 4,911 | |||||||||||||
Total other comprehensive loss | (161,705 | ) | (44,819 | ) | (176,461 | ) | 221,280 | (161,705 | ) | ||||||||||
Total comprehensive income | $ | 302,270 | $ | 345,667 | $ | (45,814 | ) | $ | (299,853 | ) | $ | 302,270 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 423,223 | $ | 348,361 | $ | 123,361 | $ | (471,722 | ) | $ | 423,223 | ||||||||
Other comprehensive (loss) income: | |||||||||||||||||||
Foreign currency translation | (69,817 | ) | (20,359 | ) | (65,878 | ) | 86,237 | (69,817 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 2,469 | — | 294 | (294 | ) | 2,469 | |||||||||||||
Net change in unrealized gains/losses on pension plans, net of tax | 2,103 | — | 2,103 | (2,103 | ) | 2,103 | |||||||||||||
Total other comprehensive loss | (65,245 | ) | (20,359 | ) | (63,481 | ) | 83,840 | (65,245 | ) | ||||||||||
Total comprehensive income | $ | 357,978 | $ | 328,002 | $ | 59,880 | $ | (387,882 | ) | $ | 357,978 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 381,519 | $ | 335,489 | $ | 92,962 | $ | (428,451 | ) | $ | 381,519 | ||||||||
Other comprehensive (loss) income: | |||||||||||||||||||
Foreign currency translation | (51,979 | ) | (17,710 | ) | (49,559 | ) | 67,269 | (51,979 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 2,195 | — | (444 | ) | 444 | 2,195 | |||||||||||||
Net change in unrealized gain on pension plans, net of tax | (10,452 | ) | — | (10,452 | ) | 10,452 | (10,452 | ) | |||||||||||
Total other comprehensive loss | (60,236 | ) | (17,710 | ) | (60,455 | ) | 78,165 | (60,236 | ) | ||||||||||
Total comprehensive income | $ | 321,283 | $ | 317,779 | $ | 32,507 | $ | (350,286 | ) | $ | 321,283 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In thousands) | |||||||||||||||||||
December 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and equivalents | $ | 33,030 | $ | 35,360 | $ | 159,010 | $ | — | $ | 227,400 | |||||||||
Receivables, net | — | 248,188 | 612,361 | — | 860,549 | ||||||||||||||
Intercompany receivables, net | 2,805 | 11,237 | 8,837 | (22,879 | ) | — | |||||||||||||
Inventories | — | 1,149,763 | 785,474 | — | 1,935,237 | ||||||||||||||
Prepaid expenses and other current assets | 1,640 | 43,165 | 42,963 | — | 87,768 | ||||||||||||||
Assets of discontinued operations | — | 357,788 | 98,852 | — | 456,640 | ||||||||||||||
Total Current Assets | 37,475 | 1,845,501 | 1,707,497 | (22,879 | ) | 3,567,594 | |||||||||||||
Property and Equipment, net | 239 | 527,705 | 283,632 | — | 811,576 | ||||||||||||||
Intangible Assets: | |||||||||||||||||||
Goodwill | — | 1,851,274 | 1,203,495 | — | 3,054,769 | ||||||||||||||
Other intangibles, net | — | 153,689 | 430,542 | — | 584,231 | ||||||||||||||
Investment in Subsidiaries | 5,067,297 | 242,032 | — | (5,309,329 | ) | — | |||||||||||||
Intercompany Notes Receivable | 1,510,534 | 800,283 | — | (2,310,817 | ) | — | |||||||||||||
Equity Method Investments | — | 336 | 183,131 | — | 183,467 | ||||||||||||||
Other Assets | 59,726 | 25,177 | 22,347 | (5,688 | ) | 101,562 | |||||||||||||
Total Assets | $ | 6,675,271 | $ | 5,445,997 | $ | 3,830,644 | $ | (7,648,713 | ) | $ | 8,303,199 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Accounts payable | $ | 1,309 | $ | 244,074 | $ | 388,390 | $ | — | $ | 633,773 | |||||||||
Intercompany payables, net | 11,237 | 8,837 | 2,805 | (22,879 | ) | — | |||||||||||||
Accrued expenses: | |||||||||||||||||||
Accrued payroll-related liabilities | 6,404 | 58,187 | 54,164 | — | 118,755 | ||||||||||||||
Self-insurance reserves | — | 39,059 | 489 | — | 39,548 | ||||||||||||||
Other accrued expenses | 5,502 | 55,228 | 108,823 | — | 169,553 | ||||||||||||||
Other current liabilities | 4,283 | 18,456 | 15,204 | — | 37,943 | ||||||||||||||
Current portion of long-term obligations | 37,710 | 1,097 | 27,302 | — | 66,109 | ||||||||||||||
Liabilities of discontinued operations | — | 110,890 | 34,214 | — | 145,104 | ||||||||||||||
Total Current Liabilities | 66,445 | 535,828 | 631,391 | (22,879 | ) | 1,210,785 | |||||||||||||
Long-Term Obligations, Excluding Current Portion | 2,371,578 | 8,356 | 895,728 | — | 3,275,662 | ||||||||||||||
Intercompany Notes Payable | 750,000 | 1,074,218 | 486,599 | (2,310,817 | ) | — | |||||||||||||
Deferred Income Taxes | — | 95,765 | 109,580 | (5,688 | ) | 199,657 | |||||||||||||
Other Noncurrent Liabilities | 44,299 | 90,722 | 39,125 | — | 174,146 | ||||||||||||||
Stockholders’ Equity | 3,442,949 | 3,641,108 | 1,668,221 | (5,309,329 | ) | 3,442,949 | |||||||||||||
Total Liabilities and Stockholders' Equity | $ | 6,675,271 | $ | 5,445,997 | $ | 3,830,644 | $ | (7,648,713 | ) | $ | 8,303,199 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In thousands) | |||||||||||||||||||
December 31, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and equivalents | $ | 17,616 | $ | 13,432 | $ | 56,349 | $ | — | $ | 87,397 | |||||||||
Receivables, net | — | 214,502 | 375,658 | — | 590,160 | ||||||||||||||
Intercompany receivables, net | 3 | — | 13,544 | (13,547 | ) | — | |||||||||||||
Inventories | — | 1,060,834 | 495,718 | — | 1,556,552 | ||||||||||||||
Prepaid expenses and other current assets | 15,254 | 44,810 | 46,539 | — | 106,603 | ||||||||||||||
Total Current Assets | 32,873 | 1,333,578 | 987,808 | (13,547 | ) | 2,340,712 | |||||||||||||
Property and Equipment, net | 339 | 494,658 | 201,570 | — | 696,567 | ||||||||||||||
Intangible Assets: | |||||||||||||||||||
Goodwill | — | 1,640,745 | 678,501 | — | 2,319,246 | ||||||||||||||
Other intangibles, net | — | 141,537 | 73,580 | — | 215,117 | ||||||||||||||
Investment in Subsidiaries | 3,456,837 | 285,284 | — | (3,742,121 | ) | — | |||||||||||||
Intercompany Notes Receivable | 630,717 | 61,764 | — | (692,481 | ) | — | |||||||||||||
Equity Method Investments | — | 628 | 2,127 | — | 2,755 | ||||||||||||||
Other Assets | 35,649 | 27,556 | 16,091 | (5,856 | ) | 73,440 | |||||||||||||
Total Assets | $ | 4,156,415 | $ | 3,985,750 | $ | 1,959,677 | $ | (4,454,005 | ) | $ | 5,647,837 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Accounts payable | $ | 681 | $ | 229,519 | $ | 185,388 | $ | — | $ | 415,588 | |||||||||
Intercompany payables, net | — | 13,544 | 3 | (13,547 | ) | — | |||||||||||||
Accrued expenses: | |||||||||||||||||||
Accrued payroll-related liabilities | 4,395 | 48,698 | 33,434 | — | 86,527 | ||||||||||||||
Self-insurance reserves | — | 37,499 | 260 | — | 37,759 | ||||||||||||||
Other accrued expenses | 5,399 | 43,387 | 75,680 | — | 124,466 | ||||||||||||||
Other current liabilities | 284 | 15,953 | 15,359 | — | 31,596 | ||||||||||||||
Current portion of long-term obligations | 21,041 | 1,425 | 33,568 | — | 56,034 | ||||||||||||||
Total Current Liabilities | 31,800 | 390,025 | 343,692 | (13,547 | ) | 751,970 | |||||||||||||
Long-Term Obligations, Excluding Current Portion | 976,353 | 7,487 | 544,828 | — | 1,528,668 | ||||||||||||||
Intercompany Notes Payable | — | 615,488 | 76,993 | (692,481 | ) | — | |||||||||||||
Deferred Income Taxes | — | 113,905 | 19,190 | (5,856 | ) | 127,239 | |||||||||||||
Other Noncurrent Liabilities | 33,580 | 70,109 | 21,589 | — | 125,278 | ||||||||||||||
Stockholders’ Equity | 3,114,682 | 2,788,736 | 953,385 | (3,742,121 | ) | 3,114,682 | |||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 4,156,415 | $ | 3,985,750 | $ | 1,959,677 | $ | (4,454,005 | ) | $ | 5,647,837 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In thousands) | |||||||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by operating activities | $ | 308,299 | $ | 539,318 | $ | 99,894 | $ | (312,497 | ) | $ | 635,014 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | (36 | ) | (120,761 | ) | (86,277 | ) | — | (207,074 | ) | ||||||||||
Investment and intercompany note activity with subsidiaries | (1,720,732 | ) | — | — | 1,720,732 | — | |||||||||||||
Acquisitions, net of cash acquired | — | (685,278 | ) | (664,061 | ) | — | (1,349,339 | ) | |||||||||||
Proceeds from foreign exchange contracts | 18,342 | — | — | — | 18,342 | ||||||||||||||
Other investing activities, net | 3 | (2,447 | ) | (169,413 | ) | — | (171,857 | ) | |||||||||||
Net cash used in investing activities | (1,702,423 | ) | (808,486 | ) | (919,751 | ) | 1,720,732 | (1,709,928 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from exercise of stock options | 7,963 | — | — | — | 7,963 | ||||||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (4,438 | ) | — | — | — | (4,438 | ) | ||||||||||||
Debt issuance costs | (7,104 | ) | — | (9,450 | ) | — | (16,554 | ) | |||||||||||
Proceeds from issuance of Euro notes | — | — | 563,450 | — | 563,450 | ||||||||||||||
Borrowings under revolving credit facilities | 1,744,408 | — | 892,188 | — | 2,636,596 | ||||||||||||||
Repayments under revolving credit facilities | (654,000 | ) | — | (1,094,664 | ) | — | (1,748,664 | ) | |||||||||||
Borrowings under term loans | 332,954 | — | 249,161 | — | 582,115 | ||||||||||||||
Repayments under term loans | (10,898 | ) | — | (244,894 | ) | — | (255,792 | ) | |||||||||||
Borrowings under receivables securitization facility | — | — | 106,400 | — | 106,400 | ||||||||||||||
Repayments under receivables securitization facility | — | — | (69,400 | ) | — | (69,400 | ) | ||||||||||||
Repayments of other debt, net | 653 | (2,935 | ) | (28,874 | ) | — | (31,156 | ) | |||||||||||
Repayment of Rhiag debt and related payments | — | — | (543,347 | ) | — | (543,347 | ) | ||||||||||||
Payments of other obligations | — | (1,436 | ) | — | (1,436 | ) | |||||||||||||
Investment and intercompany note activity with parent | — | 608,270 | 1,112,462 | (1,720,732 | ) | — | |||||||||||||
Dividends | — | (312,497 | ) | — | 312,497 | — | |||||||||||||
Net cash provided by financing activities | 1,409,538 | 291,402 | 933,032 | (1,408,235 | ) | 1,225,737 | |||||||||||||
Effect of exchange rate changes on cash and equivalents | — | (157 | ) | (3,547 | ) | — | (3,704 | ) | |||||||||||
Net increase in cash and equivalents | 15,414 | 22,077 | 109,628 | — | 147,119 | ||||||||||||||
Cash and equivalents, beginning of period | 17,616 | 13,432 | 56,349 | — | 87,397 | ||||||||||||||
Cash and equivalents of continuing and discontinued operations, end of period | 33,030 | 35,509 | 165,977 | — | 234,516 | ||||||||||||||
Less: Cash and equivalents of discontinued operations, end of period | — | (149 | ) | (6,967 | ) | — | (7,116 | ) | |||||||||||
Cash and equivalents, end of period | $ | 33,030 | $ | 35,360 | $ | 159,010 | $ | — | $ | 227,400 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In thousands) | |||||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by operating activities | $ | 262,812 | $ | 393,422 | $ | 136,361 | $ | (248,313 | ) | $ | 544,282 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | (1 | ) | (85,868 | ) | (84,621 | ) | — | (170,490 | ) | ||||||||||
Investment and intercompany note activity with subsidiaries | (66,712 | ) | — | — | 66,712 | — | |||||||||||||
Acquisitions, net of cash acquired | — | (118,963 | ) | (41,554 | ) | — | (160,517 | ) | |||||||||||
Other investing activities, net | — | 5,446 | (4,432 | ) | — | 1,014 | |||||||||||||
Net cash used in investing activities | (66,713 | ) | (199,385 | ) | (130,607 | ) | 66,712 | (329,993 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from exercise of stock options | 8,168 | — | — | — | 8,168 | ||||||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (7,581 | ) | — | — | — | (7,581 | ) | ||||||||||||
Debt issuance costs | — | — | (97 | ) | — | (97 | ) | ||||||||||||
Borrowings under revolving credit facilities | 212,000 | — | 101,142 | — | 313,142 | ||||||||||||||
Repayments under revolving credit facilities | (352,000 | ) | — | (93,282 | ) | — | (445,282 | ) | |||||||||||
Repayments under term loans | (22,500 | ) | — | — | — | (22,500 | ) | ||||||||||||
Borrowings under receivables securitization facility | — | — | 3,858 | — | 3,858 | ||||||||||||||
Repayments under receivables securitization facility | — | — | (35,758 | ) | — | (35,758 | ) | ||||||||||||
Repayments (borrowings) of other debt, net | (31,500 | ) | (3,457 | ) | 5,261 | — | (29,696 | ) | |||||||||||
Payments of other obligations | — | (21,896 | ) | (895 | ) | — | (22,791 | ) | |||||||||||
Investment and intercompany note activity with parent | — | 60,910 | 5,802 | (66,712 | ) | — | |||||||||||||
Dividends | — | (248,313 | ) | — | 248,313 | — | |||||||||||||
Net cash used in financing activities | (193,413 | ) | (212,756 | ) | (13,969 | ) | 181,601 | (238,537 | ) | ||||||||||
Effect of exchange rate changes on cash and equivalents | — | 48 | (3,008 | ) | — | (2,960 | ) | ||||||||||||
Net increase (decrease) in cash and equivalents | 2,686 | (18,671 | ) | (11,223 | ) | — | (27,208 | ) | |||||||||||
Cash and equivalents, beginning of period | 14,930 | 32,103 | 67,572 | — | 114,605 | ||||||||||||||
Cash and equivalents, end of period | $ | 17,616 | $ | 13,432 | $ | 56,349 | $ | — | $ | 87,397 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In thousands) | |||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 289,035 | $ | 427,249 | $ | (53,348 | ) | $ | (274,225 | ) | $ | 388,711 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | (44 | ) | (85,182 | ) | (55,724 | ) | — | (140,950 | ) | ||||||||||
Investment and intercompany note activity with subsidiaries | (477,007 | ) | (608 | ) | — | 477,615 | — | ||||||||||||
Acquisitions, net of cash acquired | — | (635,171 | ) | (140,750 | ) | — | (775,921 | ) | |||||||||||
Other investing activities, net | — | 768 | (4,891 | ) | — | (4,123 | ) | ||||||||||||
Net cash used in investing activities | (477,051 | ) | (720,193 | ) | (201,365 | ) | 477,615 | (920,994 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from exercise of stock options | 9,324 | — | — | — | 9,324 | ||||||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (443 | ) | — | — | — | (443 | ) | ||||||||||||
Debt issuance costs | (3,675 | ) | — | (75 | ) | — | (3,750 | ) | |||||||||||
Borrowings under revolving credit facilities | 867,000 | — | 720,644 | — | 1,587,644 | ||||||||||||||
Repayments under revolving credit facilities | (727,000 | ) | — | (371,518 | ) | — | (1,098,518 | ) | |||||||||||
Borrowings under term loans | 11,250 | — | — | — | 11,250 | ||||||||||||||
Repayments under term loans | (16,875 | ) | — | — | — | (16,875 | ) | ||||||||||||
Borrowings under receivables securitization facility | — | — | 95,050 | — | 95,050 | ||||||||||||||
Repayments under receivables securitization facility | — | — | (150 | ) | — | (150 | ) | ||||||||||||
Repayments of other debt, net | (1,921 | ) | (2,310 | ) | (35,820 | ) | — | (40,051 | ) | ||||||||||
Payments of other obligations | — | (464 | ) | (41,528 | ) | — | (41,992 | ) | |||||||||||
Other financing activities, net | (12,640 | ) | 12,340 | — | — | (300 | ) | ||||||||||||
Investment and intercompany note activity with parent | — | 576,384 | (98,769 | ) | (477,615 | ) | — | ||||||||||||
Dividends | — | (274,225 | ) | — | 274,225 | — | |||||||||||||
Net cash provided by financing activities | 125,020 | 311,725 | 267,834 | (203,390 | ) | 501,189 | |||||||||||||
Effect of exchange rate changes on cash and equivalents | — | (371 | ) | (4,418 | ) | — | (4,789 | ) | |||||||||||
Net (decrease) increase in cash and equivalents | (62,996 | ) | 18,410 | 8,703 | — | (35,883 | ) | ||||||||||||
Cash and equivalents, beginning of period | 77,926 | 13,693 | 58,869 | — | 150,488 | ||||||||||||||
Cash and equivalents, end of period | $ | 14,930 | $ | 32,103 | $ | 67,572 | $ | — | $ | 114,605 |
|
Descriptions | Balance at Beginning of Period | Additions Charged to Costs and Expenses | Deductions | Acquisitions and Other | Balance at End of Period | |||||||||||||||
ALLOWANCE FOR DOUBTFUL ACCOUNTS: | ||||||||||||||||||||
Year ended December 31, 2016 | $ | 24,583 | $ | 13,280 | $ | (21,829 | ) | $ | 29,574 | $ | 45,608 | |||||||||
Year ended December 31, 2015 | 19,426 | 13,654 | (9,486 | ) | 989 | 24,583 | ||||||||||||||
Year ended December 31, 2014 | 14,360 | 9,814 | (9,184 | ) | 4,436 | 19,426 | ||||||||||||||
ALLOWANCE FOR ESTIMATED RETURNS, DISCOUNTS & ALLOWANCES: | ||||||||||||||||||||
Year ended December 31, 2016 | 32,774 | $ | 1,088,426 | $ | (1,090,555 | ) | $ | 7,700 | $ | 38,345 | ||||||||||
Year ended December 31, 2015 | 31,288 | 1,049,987 | (1,051,439 | ) | 2,938 | 32,774 | ||||||||||||||
Year ended December 31, 2014 | 26,636 | 955,615 | (961,658 | ) | 10,695 | 31,288 |
|
December 31, | |||||||
2016 | 2015 | ||||||
Aftermarket and refurbished products | $ | 1,540,257 | $ | 1,146,162 | |||
Salvage and remanufactured products | 394,980 | 410,390 | |||||
Total inventories | $ | 1,935,237 | $ | 1,556,552 |
Land improvements | 10-20 years |
Buildings and improvements | 20-40 years |
Machinery and equipment | 3-20 years |
Computer equipment and software | 3-10 years |
Vehicles and trailers | 3-10 years |
Furniture and fixtures | 5-7 years |
December 31, | |||||||
2016 | 2015 | ||||||
Land and improvements | $ | 127,211 | $ | 118,420 | |||
Buildings and improvements | 209,773 | 183,480 | |||||
Machinery and equipment | 429,446 | 355,313 | |||||
Computer equipment and software | 120,316 | 130,363 | |||||
Vehicles and trailers | 138,263 | 101,201 | |||||
Furniture and fixtures | 28,405 | 24,332 | |||||
Leasehold improvements | 152,356 | 140,732 | |||||
1,205,770 | 1,053,841 | ||||||
Less—Accumulated depreciation | (495,644 | ) | (437,946 | ) | |||
Construction in progress | 101,450 | 80,672 | |||||
Total property and equipment, net | $ | 811,576 | $ | 696,567 |
North America | Europe | Specialty | Total | ||||||||||||
Balance as of January 1, 2014 | $ | 1,358,937 | $ | 578,507 | $ | — | $ | 1,937,444 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 43,752 | 91,916 | 280,035 | 415,703 | |||||||||||
Exchange rate effects | (10,657 | ) | (53,604 | ) | 9 | (64,252 | ) | ||||||||
Balance as of December 31, 2014 | $ | 1,392,032 | $ | 616,819 | $ | 280,044 | $ | 2,288,895 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 72,355 | 21,217 | (1,397 | ) | 92,175 | ||||||||||
Exchange rate effects | (18,537 | ) | (43,554 | ) | 267 | (61,824 | ) | ||||||||
Balance as of December 31, 2015 | $ | 1,445,850 | $ | 594,482 | $ | 278,914 | $ | 2,319,246 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 226,483 | 614,437 | 1,889 | 842,809 | |||||||||||
Exchange rate effects | 1,818 | (108,943 | ) | (161 | ) | (107,286 | ) | ||||||||
Balance as of December 31, 2016 | $ | 1,674,151 | $ | 1,099,976 | $ | 280,642 | $ | 3,054,769 |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Trade names and trademarks | $ | 286,008 | $ | (51,104 | ) | $ | 234,904 | $ | 172,219 | $ | (43,458 | ) | $ | 128,761 | |||||||||
Customer and supplier relationships | 395,284 | (92,079 | ) | 303,205 | 95,508 | (41,007 | ) | 54,501 | |||||||||||||||
Software and other technology related assets | 77,329 | (35,648 | ) | 41,681 | 44,500 | (17,844 | ) | 26,656 | |||||||||||||||
Covenants not to compete | 11,726 | (7,285 | ) | 4,441 | 10,774 | (5,575 | ) | 5,199 | |||||||||||||||
$ | 770,347 | $ | (186,116 | ) | $ | 584,231 | $ | 323,001 | $ | (107,884 | ) | $ | 215,117 |
Year Ended | Year Ended | ||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||
Rhiag | PGW | Other Acquisitions | Total | All Acquisitions (1) | |||||||||||||||
Trade names and trademarks | $ | 127,351 | $ | 5,500 | $ | 1,015 | $ | 133,866 | $ | 3,555 | |||||||||
Customer and supplier relationships | 291,893 | 29,700 | — | 321,593 | 4,601 | ||||||||||||||
Software and other technology related assets | 10,116 | 1,154 | 1,420 | 12,690 | 1,213 | ||||||||||||||
Covenants not to compete | — | 1,600 | 102 | 1,702 | 557 | ||||||||||||||
$ | 429,360 | $ | 37,954 | $ | 2,537 | $ | 469,851 | $ | 9,926 |
Method of Amortization | Useful Life | ||
Trade names and trademarks | Straight-line | 4-30 years | |
Customer and supplier relationships | Accelerated | 4-20 years | |
Software and other technology related assets | Straight-line | 3-6 years | |
Covenants not to compete | Straight-line | 1-5 years |
Balance as of January 1, 2015 | $ | 14,881 | |
Warranty expense | 33,727 | ||
Warranty claims | (31,245 | ) | |
Balance as of December 31, 2015 | $ | 17,363 | |
Warranty expense | 32,096 | ||
Warranty claims | (29,825 | ) | |
Balance as of December 31, 2016 | $ | 19,634 |
|
Year Ended | Year Ended | ||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||
Rhiag | PGW (1) | Other Acquisitions | Total | All Acquisitions | |||||||||||||||
Receivables | $ | 230,670 | $ | 136,523 | $ | 13,216 | $ | 380,409 | $ | 29,628 | |||||||||
Receivable reserves | (28,242 | ) | (7,135 | ) | (794 | ) | (36,171 | ) | (3,926 | ) | |||||||||
Inventories (2) | 239,529 | 169,159 | 62,223 | 470,911 | 79,646 | ||||||||||||||
Prepaid expenses and other current assets | 10,793 | 42,573 | 4,445 | 57,811 | 3,337 | ||||||||||||||
Property and equipment | 56,774 | 225,645 | 17,140 | 299,559 | 11,989 | ||||||||||||||
Goodwill | 585,415 | 205,058 | 52,336 | 842,809 | 92,175 | ||||||||||||||
Other intangibles | 429,360 | 37,954 | 2,537 | 469,851 | 9,926 | ||||||||||||||
Other assets (3) | 2,092 | 57,671 | (133 | ) | 59,630 | 5,166 | |||||||||||||
Deferred income taxes | (110,791 | ) | 17,506 | (1,000 | ) | (94,285 | ) | 4,102 | |||||||||||
Current liabilities assumed | (239,665 | ) | (168,332 | ) | (42,290 | ) | (450,287 | ) | (39,191 | ) | |||||||||
Debt assumed | (550,843 | ) | (4,027 | ) | (2,378 | ) | (557,248 | ) | (2,365 | ) | |||||||||
Other noncurrent liabilities assumed | (23,085 | ) | (50,847 | ) | (103 | ) | (74,035 | ) | (2,651 | ) | |||||||||
Other purchase price obligations | — | — | (6,698 | ) | (6,698 | ) | (21,199 | ) | |||||||||||
Notes issued | — | — | (4,087 | ) | (4,087 | ) | (4,296 | ) | |||||||||||
Settlement of pre-existing balances | (591 | ) | — | (32 | ) | (623 | ) | (1,073 | ) | ||||||||||
Gain on bargain purchase | — | — | (8,207 | ) | (8,207 | ) | — | ||||||||||||
Cash used in acquisitions, net of cash acquired | $ | 601,416 | $ | 661,748 | $ | 86,175 | $ | 1,349,339 | $ | 161,268 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenue, as reported | $ | 8,584,031 | $ | 7,192,633 | $ | 6,740,064 | |||||
Revenue of purchased businesses for the period prior to acquisition: | |||||||||||
Rhiag | 213,376 | 994,903 | — | ||||||||
PGW (1) | 102,540 | 339,012 | — | ||||||||
Keystone Specialty | — | — | 3,443 | ||||||||
Other acquisitions | 265,717 | 615,140 | 676,965 | ||||||||
Pro forma revenue | $ | 9,165,664 | $ | 9,141,688 | $ | 7,420,472 | |||||
Income from continuing operations, as reported | $ | 456,123 | $ | 423,223 | $ | 381,519 | |||||
Income from continuing operations of purchased businesses for the period prior to acquisition, and pro forma purchase accounting adjustments: | |||||||||||
Rhiag | (662 | ) | 10,310 | — | |||||||
PGW (1),(2) | 7,574 | 3,334 | — | ||||||||
Keystone Specialty | — | — | 521 | ||||||||
Other acquisitions (3) | (807 | ) | 15,266 | 18,371 | |||||||
Acquisition related expenses, net of tax (4) | 11,034 | 1,830 | 2,295 | ||||||||
Pro forma income from continuing operations | $ | 473,262 | $ | 453,963 | $ | 402,706 | |||||
Earnings per share from continuing operations, basic - as reported | $ | 1.49 | $ | 1.39 | $ | 1.26 | |||||
Effect of purchased businesses for the period prior to acquisition: | |||||||||||
Rhiag | (0.00) | 0.03 | — | ||||||||
PGW (1),(2) | 0.02 | 0.01 | — | ||||||||
Keystone Specialty | — | — | 0.00 | ||||||||
Other acquisitions | (0.00) | 0.05 | 0.06 | ||||||||
Acquisition related expenses, net of tax (4) | 0.04 | 0.01 | 0.01 | ||||||||
Pro forma earnings per share from continuing operations, basic (5) | $ | 1.54 | $ | 1.49 | $ | 1.33 | |||||
Earnings per share from continuing operations, diluted - as reported | $ | 1.47 | $ | 1.38 | $ | 1.25 | |||||
Effect of purchased businesses for the period prior to acquisition: | |||||||||||
Rhiag | (0.00) | 0.03 | — | ||||||||
PGW (1),(2) | 0.02 | 0.01 | — | ||||||||
Keystone Specialty | — | — | 0.00 | ||||||||
Other acquisitions | (0.00) | 0.05 | 0.06 | ||||||||
Acquisition related expenses, net of tax (4) | 0.04 | 0.01 | 0.01 | ||||||||
Pro forma earnings per share from continuing operations, diluted (5) | $ | 1.53 | $ | 1.48 | $ | 1.31 |
|
Period from April 21 to December 31, | ||||
2016 | ||||
Revenue | $ | 498,233 | ||
Cost of goods sold | (424,161 | ) | ||
Operating expenses | (22,330 | ) | ||
Impairment on net assets of discontinued operations | (26,677 | ) | (1) | |
Operating income | 25,065 | |||
Interest and other expenses, net | (9,136 | ) | (2) | |
Income from discontinued operations before taxes | 15,929 | |||
Provision for taxes | (8,252 | ) | ||
Equity in earnings of unconsolidated subsidiaries | 175 | |||
Income from discontinued operations, net of tax | $ | 7,852 |
Period from April 21 to December 31, | |||
2016 | |||
Non-cash operating activities: | |||
Depreciation and amortization | $ | 7,752 | |
Impairment on net assets of discontinued operations | 26,677 | ||
Deferred income taxes | (4,516 | ) | |
Capital expenditures | (24,156 | ) | |
Investments in unconsolidated subsidiaries | (4,400 | ) |
December 31, 2016 | |||
Cash and equivalents | $ | 7,116 | |
Receivables, net | 77,442 | ||
Inventories | 71,952 | ||
Prepaid expenses and other current assets | 42,426 | ||
Property, plant and equipment, net | 199,136 | ||
Other assets | 64,166 | ||
Valuation allowance | (5,598 | ) | |
Total assets from discontinued operations | $ | 456,640 | |
Accounts payable | $ | 72,696 | |
Other current liabilities | 37,104 | ||
Long-term obligations | 1,648 | ||
Other noncurrent liabilities (includes pension and post-retirement obligations) | 33,656 | ||
Total liabilities from discontinued operations | 145,104 | ||
Net assets from discontinued operations | $ | 311,536 |
|
Method of Amortization | Useful Life | ||
Trade names and trademarks | Straight-line | 4-30 years | |
Customer and supplier relationships | Accelerated | 4-20 years | |
Software and other technology related assets | Straight-line | 3-6 years | |
Covenants not to compete | Straight-line | 1-5 years |
December 31, | |||||||
2016 | 2015 | ||||||
Aftermarket and refurbished products | $ | 1,540,257 | $ | 1,146,162 | |||
Salvage and remanufactured products | 394,980 | 410,390 | |||||
Total inventories | $ | 1,935,237 | $ | 1,556,552 |
Land improvements | 10-20 years |
Buildings and improvements | 20-40 years |
Machinery and equipment | 3-20 years |
Computer equipment and software | 3-10 years |
Vehicles and trailers | 3-10 years |
Furniture and fixtures | 5-7 years |
December 31, | |||||||
2016 | 2015 | ||||||
Land and improvements | $ | 127,211 | $ | 118,420 | |||
Buildings and improvements | 209,773 | 183,480 | |||||
Machinery and equipment | 429,446 | 355,313 | |||||
Computer equipment and software | 120,316 | 130,363 | |||||
Vehicles and trailers | 138,263 | 101,201 | |||||
Furniture and fixtures | 28,405 | 24,332 | |||||
Leasehold improvements | 152,356 | 140,732 | |||||
1,205,770 | 1,053,841 | ||||||
Less—Accumulated depreciation | (495,644 | ) | (437,946 | ) | |||
Construction in progress | 101,450 | 80,672 | |||||
Total property and equipment, net | $ | 811,576 | $ | 696,567 |
North America | Europe | Specialty | Total | ||||||||||||
Balance as of January 1, 2014 | $ | 1,358,937 | $ | 578,507 | $ | — | $ | 1,937,444 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 43,752 | 91,916 | 280,035 | 415,703 | |||||||||||
Exchange rate effects | (10,657 | ) | (53,604 | ) | 9 | (64,252 | ) | ||||||||
Balance as of December 31, 2014 | $ | 1,392,032 | $ | 616,819 | $ | 280,044 | $ | 2,288,895 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 72,355 | 21,217 | (1,397 | ) | 92,175 | ||||||||||
Exchange rate effects | (18,537 | ) | (43,554 | ) | 267 | (61,824 | ) | ||||||||
Balance as of December 31, 2015 | $ | 1,445,850 | $ | 594,482 | $ | 278,914 | $ | 2,319,246 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 226,483 | 614,437 | 1,889 | 842,809 | |||||||||||
Exchange rate effects | 1,818 | (108,943 | ) | (161 | ) | (107,286 | ) | ||||||||
Balance as of December 31, 2016 | $ | 1,674,151 | $ | 1,099,976 | $ | 280,642 | $ | 3,054,769 |
December 31, 2016 | December 31, 2015 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Trade names and trademarks | $ | 286,008 | $ | (51,104 | ) | $ | 234,904 | $ | 172,219 | $ | (43,458 | ) | $ | 128,761 | |||||||||
Customer and supplier relationships | 395,284 | (92,079 | ) | 303,205 | 95,508 | (41,007 | ) | 54,501 | |||||||||||||||
Software and other technology related assets | 77,329 | (35,648 | ) | 41,681 | 44,500 | (17,844 | ) | 26,656 | |||||||||||||||
Covenants not to compete | 11,726 | (7,285 | ) | 4,441 | 10,774 | (5,575 | ) | 5,199 | |||||||||||||||
$ | 770,347 | $ | (186,116 | ) | $ | 584,231 | $ | 323,001 | $ | (107,884 | ) | $ | 215,117 |
Year Ended | Year Ended | ||||||||||||||||||
December 31, 2016 | December 31, 2015 | ||||||||||||||||||
Rhiag | PGW | Other Acquisitions | Total | All Acquisitions (1) | |||||||||||||||
Trade names and trademarks | $ | 127,351 | $ | 5,500 | $ | 1,015 | $ | 133,866 | $ | 3,555 | |||||||||
Customer and supplier relationships | 291,893 | 29,700 | — | 321,593 | 4,601 | ||||||||||||||
Software and other technology related assets | 10,116 | 1,154 | 1,420 | 12,690 | 1,213 | ||||||||||||||
Covenants not to compete | — | 1,600 | 102 | 1,702 | 557 | ||||||||||||||
$ | 429,360 | $ | 37,954 | $ | 2,537 | $ | 469,851 | $ | 9,926 |
Balance as of January 1, 2015 | $ | 14,881 | |
Warranty expense | 33,727 | ||
Warranty claims | (31,245 | ) | |
Balance as of December 31, 2015 | $ | 17,363 | |
Warranty expense | 32,096 | ||
Warranty claims | (29,825 | ) | |
Balance as of December 31, 2016 | $ | 19,634 |
|
Number Outstanding | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) (1) | |||||||||
Unvested as of January 1, 2016 | 1,981,292 | $ | 24.19 | |||||||||
Granted | 976,318 | $ | 29.05 | |||||||||
Vested | (996,607 | ) | $ | 22.30 | ||||||||
Forfeited / Canceled | (87,266 | ) | $ | 27.15 | ||||||||
Unvested as of December 31, 2016 | 1,873,737 | $ | 27.58 | |||||||||
Expected to vest after December 31, 2016 | 1,723,579 | $ | 27.45 | 2.4 | $ | 52,828 |
Number Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) (1) | |||||||||
Balance as of January 1, 2016 | 3,765,952 | $ | 8.63 | |||||||||
Exercised | (1,124,317 | ) | $ | 7.08 | $ | 27,844 | ||||||
Forfeited / Canceled | (18,418 | ) | $ | 24.14 | ||||||||
Balance as of December 31, 2016 | 2,623,217 | $ | 9.19 | 2.3 | $ | 56,427 | ||||||
Exercisable as of December 31, 2016 | 2,543,299 | $ | 8.46 | 2.3 | $ | 56,427 | ||||||
Exercisable as of December 31, 2016 and expected to vest thereafter | 2,623,217 | $ | 9.19 | 2.3 | $ | 56,427 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
RSUs | $ | 22,183 | $ | 21,058 | $ | 18,965 | |||||
Stock options and other | 162 | 278 | 3,056 | ||||||||
Total stock-based compensation expense | $ | 22,345 | $ | 21,336 | $ | 22,021 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Cost of goods sold | $ | 407 | $ | 358 | $ | 410 | |||||
Facility and warehouse expenses | 3,980 | 2,271 | 2,195 | ||||||||
Selling, general and administrative expenses | 17,958 | 18,707 | 19,416 | ||||||||
22,345 | 21,336 | 22,021 | |||||||||
Income tax benefit | (8,268 | ) | (8,221 | ) | (8,478 | ) | |||||
Total stock-based compensation expense, net of tax | $ | 14,077 | $ | 13,115 | $ | 13,543 |
RSUs | |||
2017 | $ | 15,356 | |
2018 | 10,379 | ||
2019 | 6,261 | ||
2020 | 3,260 | ||
2021 | 353 | ||
Total unrecognized compensation expense | $ | 35,609 |
|
Foreign Currency Translation | Unrealized (Loss)Gain on Cash Flow Hedges | Unrealized Gain (Loss) on Pension Plans | Accumulated Other Comprehensive Income (Loss) | |||||||||||||
Balance at January 1, 2014 | $ | 24,906 | $ | (5,596 | ) | $ | 701 | $ | 20,011 | |||||||
Pretax loss | (51,979 | ) | (1,586 | ) | (13,506 | ) | (67,071 | ) | ||||||||
Income tax effect | — | 382 | 3,179 | 3,561 | ||||||||||||
Reclassification of unrealized loss (gain) | — | 5,200 | (166 | ) | 5,034 | |||||||||||
Reclassification of deferred income taxes | — | (1,801 | ) | 41 | (1,760 | ) | ||||||||||
Balance at December 31, 2014 | $ | (27,073 | ) | $ | (3,401 | ) | $ | (9,751 | ) | $ | (40,225 | ) | ||||
Pretax (loss) income | (69,817 | ) | (1,664 | ) | 2,245 | (69,236 | ) | |||||||||
Income tax effect | — | 538 | (561 | ) | (23 | ) | ||||||||||
Reclassification of unrealized loss | — | 5,366 | 559 | 5,925 | ||||||||||||
Reclassification of deferred income taxes | — | (1,771 | ) | (140 | ) | (1,911 | ) | |||||||||
Balance at December 31, 2015 | $ | (96,890 | ) | $ | (932 | ) | $ | (7,648 | ) | $ | (105,470 | ) | ||||
Pretax (loss) income | (175,639 | ) | 12,382 | 7,175 | (156,082 | ) | ||||||||||
Income tax effect | — | (4,581 | ) | (2,636 | ) | (7,217 | ) | |||||||||
Reclassification of unrealized loss (gain) | — | 1,789 | 496 | 2,285 | ||||||||||||
Reclassification of deferred income taxes | — | (567 | ) | (124 | ) | (691 | ) | |||||||||
Balance at December 31, 2016 | $ | (272,529 | ) | $ | 8,091 | $ | (2,737 | ) | $ | (267,175 | ) |
|
December 31, | |||||||
2016 | 2015 | ||||||
Senior secured credit agreement: | |||||||
Term loans payable | $ | 732,684 | $ | 410,625 | |||
Revolving credit facilities | 1,358,220 | 480,481 | |||||
Senior notes | 600,000 | 600,000 | |||||
Euro notes | 525,850 | — | |||||
Receivables securitization facility | 100,000 | 63,000 | |||||
Notes payable through October 2025 at weighted average interest rates of 2.1% and 2.2%, respectively | 11,808 | 16,104 | |||||
Other long-term debt at weighted average interest rates of 2.4% and 2.4%, respectively | 37,125 | 29,485 | |||||
Total debt | 3,365,687 | 1,599,695 | |||||
Less: long-term debt issuance costs | (21,611 | ) | (13,533 | ) | |||
Less: current debt issuance costs | (2,305 | ) | (1,460 | ) | |||
Total debt, net of debt issuance costs | 3,341,771 | 1,584,702 | |||||
Less: current maturities, net of debt issuance costs | (66,109 | ) | (56,034 | ) | |||
Long term debt, net of debt issuance costs | $ | 3,275,662 | $ | 1,528,668 |
2017 | $ | 68,414 | |
2018 | 42,553 | ||
2019 | 140,594 | ||
2020 | 39,002 | ||
2021 | 1,942,680 | ||
Thereafter | 1,132,444 | ||
Total debt (1) | $ | 3,365,687 | |
(1) The total debt amounts presented above exclude debt issuance costs totaling $23.9 million as of December 31, 2016. |
|
Notional Amount | Fair Value at December 31, 2016 (USD) | Fair Value at December 31, 2015 (USD) | |||||||||||||||||
December 31, 2016 | December 31, 2015 | Other Assets | Other Noncurrent Liabilities | Other Accrued Expenses | |||||||||||||||
Interest rate swap agreements | |||||||||||||||||||
USD denominated | $ | 590,000 | $ | 170,000 | $ | 16,421 | $ | — | $ | 858 | |||||||||
GBP denominated | £ | — | £ | 50,000 | — | — | 465 | ||||||||||||
CAD denominated | C$ | — | C$ | 25,000 | — | — | 24 | ||||||||||||
Cross currency swap agreements | |||||||||||||||||||
USD/euro | $ | 422,408 | $ | — | 1,486 | 3,128 | — | ||||||||||||
Total cash flow hedges | $ | 17,907 | $ | 3,128 | $ | 1,347 |
|
Balance as of December 31, 2016 | Fair Value Measurements as of December 31, 2016 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||
Cash surrender value of life insurance | $ | 36,131 | $ | — | $ | 36,131 | $ | — | |||||||
Interest rate swaps | 17,907 | — | 17,907 | — | |||||||||||
Total Assets | $ | 54,038 | $ | — | $ | 54,038 | $ | — | |||||||
Liabilities: | |||||||||||||||
Contingent consideration liabilities | $ | 3,162 | $ | — | $ | — | $ | 3,162 | |||||||
Deferred compensation liabilities | 36,865 | — | 36,865 | — | |||||||||||
Foreign currency forward contracts | 3,128 | — | 3,128 | — | |||||||||||
Total Liabilities | $ | 43,155 | $ | — | $ | 39,993 | $ | 3,162 |
Balance as of December 31, 2015 | Fair Value Measurements as of December 31, 2015 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||
Cash surrender value of life insurance | $ | 29,782 | $ | — | $ | 29,782 | $ | — | |||||||
Total Assets | $ | 29,782 | $ | — | $ | 29,782 | $ | — | |||||||
Liabilities: | |||||||||||||||
Contingent consideration liabilities | $ | 4,584 | $ | — | $ | — | $ | 4,584 | |||||||
Deferred compensation liabilities | 30,336 | — | 30,336 | — | |||||||||||
Interest rate swaps | 1,347 | — | 1,347 | — | |||||||||||
Total Liabilities | $ | 36,267 | $ | — | $ | 31,683 | $ | 4,584 |
|
Years ending December 31: | |||
2017 | $ | 200,450 | |
2018 | 168,926 | ||
2019 | 136,462 | ||
2020 | 110,063 | ||
2021 | 82,494 | ||
Thereafter | 486,199 | ||
Future Minimum Lease Payments | $ | 1,184,594 |
|
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Current: | |||||||||||
Federal | $ | 159,547 | $ | 138,432 | $ | 144,924 | |||||
State | 27,120 | 25,952 | 24,052 | ||||||||
Foreign | 45,545 | 32,931 | 29,046 | ||||||||
$ | 232,212 | $ | 197,315 | $ | 198,022 | ||||||
Deferred: | |||||||||||
Federal | $ | 1,169 | $ | 22,233 | $ | 9,321 | |||||
State | 2,131 | 1,212 | (179 | ) | |||||||
Foreign | (14,946 | ) | (1,057 | ) | (2,900 | ) | |||||
$ | (11,646 | ) | $ | 22,388 | $ | 6,242 | |||||
Provision for income taxes | $ | 220,566 | $ | 219,703 | $ | 204,264 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Domestic | $ | 513,844 | $ | 478,819 | $ | 460,637 | |||||
Foreign | 163,437 | 170,211 | 127,251 | ||||||||
$ | 677,281 | $ | 649,030 | $ | 587,888 |
Year Ended December 31, | ||||||||
2016 | 2015 | 2014 | ||||||
U.S. federal statutory rate | 35.0 | % | 35.0 | % | 35.0 | % | ||
State income taxes, net of state credits and federal tax impact | 2.7 | % | 2.9 | % | 2.8 | % | ||
Impact of international operations | (3.2 | )% | (4.1 | )% | (3.6 | )% | ||
Notional interest deductions | (2.5 | )% | — | % | — | % | ||
Excess tax benefits from stock-based compensation (1) | (1.6 | )% | — | % | — | % | ||
Non-deductible expenses | 1.3 | % | 0.8 | % | 0.5 | % | ||
Other, net | 0.9 | % | (0.7 | )% | — | % | ||
Effective tax rate | 32.6 | % | 33.9 | % | 34.7 | % |
December 31, | |||||||
2016 | 2015 | ||||||
Deferred Tax Assets: | |||||||
Accrued expenses and reserves | $ | 62,059 | $ | 46,837 | |||
Qualified and nonqualified retirement plans | 36,626 | 14,130 | |||||
Inventory | 35,565 | 27,184 | |||||
Accounts receivable | 19,046 | 13,971 | |||||
Interest deduction carryforwards | 9,806 | — | |||||
Stock-based compensation | 9,687 | 11,096 | |||||
Net operating loss carryforwards | 7,858 | 8,946 | |||||
Other | 7,699 | 8,212 | |||||
188,346 | 130,376 | ||||||
Less: valuation allowance | (11,252 | ) | (3,880 | ) | |||
Total deferred tax assets | $ | 177,094 | $ | 126,496 | |||
Deferred Tax Liabilities: | |||||||
Goodwill and other intangible assets | $ | 222,476 | $ | 141,442 | |||
Property and equipment | 72,231 | 67,065 | |||||
Trade name | 59,002 | 36,532 | |||||
Other | 19,439 | 5,342 | |||||
Total deferred tax liabilities | $ | 373,148 | $ | 250,381 | |||
Net deferred tax liability | $ | (196,054 | ) | $ | (123,885 | ) |
December 31, | |||||||
2016 | 2015 | ||||||
Noncurrent deferred tax assets | $ | 3,603 | $ | 3,354 | |||
Noncurrent deferred tax liabilities | 199,657 | 127,239 |
2016 | 2015 | 2014 | |||||||||
Balance at January 1 | $ | 2,273 | $ | 2,630 | $ | 1,445 | |||||
Additions for acquired tax positions | — | 80 | 2,322 | ||||||||
Additions based on tax positions related to the current year | 5 | 302 | 302 | ||||||||
Reductions for tax positions of prior years | — | (743 | ) | — | |||||||
Lapse of statutes of limitations | (132 | ) | (119 | ) | (134 | ) | |||||
Settlements with taxing authorities | — | — | (1,182 | ) | |||||||
Currency exchange rate fluctuations | — | 123 | (123 | ) | |||||||
Balance at December 31 | $ | 2,146 | $ | 2,273 | $ | 2,630 |
|
North America | Europe | Specialty | Eliminations | Consolidated | |||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 4,470,900 | $ | 2,920,470 | $ | 1,192,661 | $ | — | $ | 8,584,031 | |||||||||
Intersegment | 739 | — | 4,048 | (4,787 | ) | — | |||||||||||||
Total segment revenue | $ | 4,471,639 | $ | 2,920,470 | $ | 1,196,709 | $ | (4,787 | ) | $ | 8,584,031 | ||||||||
Segment EBITDA | $ | 596,333 | $ | 283,608 | $ | 125,039 | $ | — | $ | 1,004,980 | |||||||||
Depreciation and amortization (1) | 81,395 | 94,979 | 21,960 | — | 198,334 | ||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 4,145,998 | $ | 1,995,385 | $ | 1,051,250 | $ | — | $ | 7,192,633 | |||||||||
Intersegment | 835 | 70 | 3,334 | (4,239 | ) | — | |||||||||||||
Total segment revenue | $ | 4,146,833 | $ | 1,995,455 | $ | 1,054,584 | $ | (4,239 | ) | $ | 7,192,633 | ||||||||
Segment EBITDA | $ | 547,405 | $ | 200,563 | $ | 106,561 | $ | — | $ | 854,529 | |||||||||
Depreciation and amortization (1) | 70,369 | 36,446 | 21,377 | — | 128,192 | ||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 4,088,701 | $ | 1,846,155 | $ | 805,208 | $ | — | $ | 6,740,064 | |||||||||
Intersegment | 589 | — | 1,807 | (2,396 | ) | — | |||||||||||||
Total segment revenue | $ | 4,089,290 | $ | 1,846,155 | $ | 807,015 | $ | (2,396 | ) | $ | 6,740,064 | ||||||||
Segment EBITDA | $ | 543,943 | $ | 167,155 | $ | 79,453 | $ | — | $ | 790,551 | |||||||||
Depreciation and amortization (1) | 70,434 | 34,391 | 20,612 | — | 125,437 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net income | $ | 463,975 | $ | 423,223 | $ | 381,519 | |||||
Subtract: | |||||||||||
Income from discontinued operations, net of tax | 7,852 | — | — | ||||||||
Income from continuing operations | 456,123 | 423,223 | 381,519 | ||||||||
Add: | |||||||||||
Depreciation and amortization | 191,433 | 122,120 | 120,719 | ||||||||
Depreciation and amortization - cost of goods sold | 6,901 | 6,072 | 4,718 | ||||||||
Interest expense, net | 87,682 | 57,342 | 63,947 | ||||||||
Loss on debt extinguishment | 26,650 | — | 324 | ||||||||
Provision for income taxes | 220,566 | 219,703 | 204,264 | ||||||||
EBITDA | 989,355 | 828,460 | 775,491 | ||||||||
Subtract: | |||||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (592 | ) | (6,104 | ) | (2,105 | ) | |||||
Gains on foreign exchange contracts- acquisition related (1) | 18,342 | — | — | ||||||||
Gain on bargain purchase (2) | 8,207 | — | — | ||||||||
Add: | |||||||||||
Restructuring and acquisition related expenses(3) | 37,762 | 19,511 | 14,806 | ||||||||
Inventory step-up adjustment - acquisition related (4) | 3,614 | — | — | ||||||||
Change in fair value of contingent consideration liabilities | 206 | 454 | (1,851 | ) | |||||||
Segment EBITDA | $ | 1,004,980 | $ | 854,529 | $ | 790,551 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Capital Expenditures | |||||||||||
North America | $ | 91,618 | $ | 72,048 | $ | 86,172 | |||||
Europe | 77,689 | 79,072 | 44,896 | ||||||||
Specialty | 13,611 | 19,370 | 9,882 | ||||||||
Discontinued operations | 24,156 | — | — | ||||||||
Total capital expenditures | $ | 207,074 | $ | 170,490 | $ | 140,950 |
December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Receivables, net | |||||||||||
North America (1) | $ | 352,930 | $ | 314,743 | $ | 322,713 | |||||
Europe (1) | 443,281 | 215,710 | 227,987 | ||||||||
Specialty | 64,338 | 59,707 | 50,722 | ||||||||
Total receivables, net | 860,549 | 590,160 | 601,422 | ||||||||
Inventories | |||||||||||
North America (1) | 917,311 | 847,787 | 826,429 | ||||||||
Europe (1) | 718,729 | 427,323 | 402,488 | ||||||||
Specialty | 299,197 | 281,442 | 204,930 | ||||||||
Total inventories | 1,935,237 | 1,556,552 | 1,433,847 | ||||||||
Property and Equipment, net | |||||||||||
North America (1) | 506,274 | 467,961 | 456,288 | ||||||||
Europe (1) | 247,910 | 175,455 | 128,309 | ||||||||
Specialty | 57,392 | 53,151 | 45,390 | ||||||||
Total property and equipment, net | 811,576 | 696,567 | 629,987 | ||||||||
Equity Method Investments | |||||||||||
North America | 336 | 628 | 536 | ||||||||
Europe (2) | 183,131 | 2,127 | 7,592 | ||||||||
Total equity method investments | 183,467 | 2,755 | 8,128 | ||||||||
Other unallocated assets | 4,512,370 | 2,801,803 | 2,802,355 | ||||||||
Total assets | $ | 8,303,199 | $ | 5,647,837 | $ | 5,475,739 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Revenue | |||||||||||
United States | $ | 5,226,918 | $ | 4,831,875 | $ | 4,499,743 | |||||
United Kingdom | 1,390,775 | 1,382,432 | 1,321,786 | ||||||||
Other countries | 1,966,338 | 978,326 | 918,535 | ||||||||
Total revenue | $ | 8,584,031 | $ | 7,192,633 | $ | 6,740,064 |
December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Long-lived Assets | |||||||||||
United States | $ | 531,425 | $ | 493,300 | $ | 469,450 | |||||
United Kingdom | 159,689 | 138,546 | 92,813 | ||||||||
Other countries | 120,462 | 64,721 | 67,724 | ||||||||
Total long-lived assets | $ | 811,576 | $ | 696,567 | $ | 629,987 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Aftermarket, other new and refurbished products | $ | 6,441,160 | $ | 5,116,373 | $ | 4,613,454 | |||||
Recycled, remanufactured and related products and services | 1,703,485 | 1,597,578 | 1,473,305 | ||||||||
Other | 439,386 | 478,682 | 653,305 | ||||||||
Total revenue | $ | 8,584,031 | $ | 7,192,633 | $ | 6,740,064 |
|
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In thousands) | |||||||||||||||||||
December 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and equivalents | $ | 33,030 | $ | 35,360 | $ | 159,010 | $ | — | $ | 227,400 | |||||||||
Receivables, net | — | 248,188 | 612,361 | — | 860,549 | ||||||||||||||
Intercompany receivables, net | 2,805 | 11,237 | 8,837 | (22,879 | ) | — | |||||||||||||
Inventories | — | 1,149,763 | 785,474 | — | 1,935,237 | ||||||||||||||
Prepaid expenses and other current assets | 1,640 | 43,165 | 42,963 | — | 87,768 | ||||||||||||||
Assets of discontinued operations | — | 357,788 | 98,852 | — | 456,640 | ||||||||||||||
Total Current Assets | 37,475 | 1,845,501 | 1,707,497 | (22,879 | ) | 3,567,594 | |||||||||||||
Property and Equipment, net | 239 | 527,705 | 283,632 | — | 811,576 | ||||||||||||||
Intangible Assets: | |||||||||||||||||||
Goodwill | — | 1,851,274 | 1,203,495 | — | 3,054,769 | ||||||||||||||
Other intangibles, net | — | 153,689 | 430,542 | — | 584,231 | ||||||||||||||
Investment in Subsidiaries | 5,067,297 | 242,032 | — | (5,309,329 | ) | — | |||||||||||||
Intercompany Notes Receivable | 1,510,534 | 800,283 | — | (2,310,817 | ) | — | |||||||||||||
Equity Method Investments | — | 336 | 183,131 | — | 183,467 | ||||||||||||||
Other Assets | 59,726 | 25,177 | 22,347 | (5,688 | ) | 101,562 | |||||||||||||
Total Assets | $ | 6,675,271 | $ | 5,445,997 | $ | 3,830,644 | $ | (7,648,713 | ) | $ | 8,303,199 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Accounts payable | $ | 1,309 | $ | 244,074 | $ | 388,390 | $ | — | $ | 633,773 | |||||||||
Intercompany payables, net | 11,237 | 8,837 | 2,805 | (22,879 | ) | — | |||||||||||||
Accrued expenses: | |||||||||||||||||||
Accrued payroll-related liabilities | 6,404 | 58,187 | 54,164 | — | 118,755 | ||||||||||||||
Self-insurance reserves | — | 39,059 | 489 | — | 39,548 | ||||||||||||||
Other accrued expenses | 5,502 | 55,228 | 108,823 | — | 169,553 | ||||||||||||||
Other current liabilities | 4,283 | 18,456 | 15,204 | — | 37,943 | ||||||||||||||
Current portion of long-term obligations | 37,710 | 1,097 | 27,302 | — | 66,109 | ||||||||||||||
Liabilities of discontinued operations | — | 110,890 | 34,214 | — | 145,104 | ||||||||||||||
Total Current Liabilities | 66,445 | 535,828 | 631,391 | (22,879 | ) | 1,210,785 | |||||||||||||
Long-Term Obligations, Excluding Current Portion | 2,371,578 | 8,356 | 895,728 | — | 3,275,662 | ||||||||||||||
Intercompany Notes Payable | 750,000 | 1,074,218 | 486,599 | (2,310,817 | ) | — | |||||||||||||
Deferred Income Taxes | — | 95,765 | 109,580 | (5,688 | ) | 199,657 | |||||||||||||
Other Noncurrent Liabilities | 44,299 | 90,722 | 39,125 | — | 174,146 | ||||||||||||||
Stockholders’ Equity | 3,442,949 | 3,641,108 | 1,668,221 | (5,309,329 | ) | 3,442,949 | |||||||||||||
Total Liabilities and Stockholders' Equity | $ | 6,675,271 | $ | 5,445,997 | $ | 3,830,644 | $ | (7,648,713 | ) | $ | 8,303,199 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Balance Sheets (In thousands) | |||||||||||||||||||
December 31, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and equivalents | $ | 17,616 | $ | 13,432 | $ | 56,349 | $ | — | $ | 87,397 | |||||||||
Receivables, net | — | 214,502 | 375,658 | — | 590,160 | ||||||||||||||
Intercompany receivables, net | 3 | — | 13,544 | (13,547 | ) | — | |||||||||||||
Inventories | — | 1,060,834 | 495,718 | — | 1,556,552 | ||||||||||||||
Prepaid expenses and other current assets | 15,254 | 44,810 | 46,539 | — | 106,603 | ||||||||||||||
Total Current Assets | 32,873 | 1,333,578 | 987,808 | (13,547 | ) | 2,340,712 | |||||||||||||
Property and Equipment, net | 339 | 494,658 | 201,570 | — | 696,567 | ||||||||||||||
Intangible Assets: | |||||||||||||||||||
Goodwill | — | 1,640,745 | 678,501 | — | 2,319,246 | ||||||||||||||
Other intangibles, net | — | 141,537 | 73,580 | — | 215,117 | ||||||||||||||
Investment in Subsidiaries | 3,456,837 | 285,284 | — | (3,742,121 | ) | — | |||||||||||||
Intercompany Notes Receivable | 630,717 | 61,764 | — | (692,481 | ) | — | |||||||||||||
Equity Method Investments | — | 628 | 2,127 | — | 2,755 | ||||||||||||||
Other Assets | 35,649 | 27,556 | 16,091 | (5,856 | ) | 73,440 | |||||||||||||
Total Assets | $ | 4,156,415 | $ | 3,985,750 | $ | 1,959,677 | $ | (4,454,005 | ) | $ | 5,647,837 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Accounts payable | $ | 681 | $ | 229,519 | $ | 185,388 | $ | — | $ | 415,588 | |||||||||
Intercompany payables, net | — | 13,544 | 3 | (13,547 | ) | — | |||||||||||||
Accrued expenses: | |||||||||||||||||||
Accrued payroll-related liabilities | 4,395 | 48,698 | 33,434 | — | 86,527 | ||||||||||||||
Self-insurance reserves | — | 37,499 | 260 | — | 37,759 | ||||||||||||||
Other accrued expenses | 5,399 | 43,387 | 75,680 | — | 124,466 | ||||||||||||||
Other current liabilities | 284 | 15,953 | 15,359 | — | 31,596 | ||||||||||||||
Current portion of long-term obligations | 21,041 | 1,425 | 33,568 | — | 56,034 | ||||||||||||||
Total Current Liabilities | 31,800 | 390,025 | 343,692 | (13,547 | ) | 751,970 | |||||||||||||
Long-Term Obligations, Excluding Current Portion | 976,353 | 7,487 | 544,828 | — | 1,528,668 | ||||||||||||||
Intercompany Notes Payable | — | 615,488 | 76,993 | (692,481 | ) | — | |||||||||||||
Deferred Income Taxes | — | 113,905 | 19,190 | (5,856 | ) | 127,239 | |||||||||||||
Other Noncurrent Liabilities | 33,580 | 70,109 | 21,589 | — | 125,278 | ||||||||||||||
Stockholders’ Equity | 3,114,682 | 2,788,736 | 953,385 | (3,742,121 | ) | 3,114,682 | |||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 4,156,415 | $ | 3,985,750 | $ | 1,959,677 | $ | (4,454,005 | ) | $ | 5,647,837 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 5,467,430 | $ | 3,301,503 | $ | (184,902 | ) | $ | 8,584,031 | ||||||||
Cost of goods sold | — | 3,313,503 | 2,103,727 | (184,902 | ) | 5,232,328 | |||||||||||||
Gross margin | — | 2,153,927 | 1,197,776 | — | 3,351,703 | ||||||||||||||
Facility and warehouse expenses | — | 475,487 | 213,431 | — | 688,918 | ||||||||||||||
Distribution expenses | — | 453,192 | 230,620 | — | 683,812 | ||||||||||||||
Selling, general and administrative expenses | 34,163 | 521,909 | 430,308 | — | 986,380 | ||||||||||||||
Restructuring and acquisition related expenses | — | 21,162 | 16,600 | — | 37,762 | ||||||||||||||
Depreciation and amortization | 132 | 94,165 | 97,136 | — | 191,433 | ||||||||||||||
Operating (loss) income | (34,295 | ) | 588,012 | 209,681 | — | 763,398 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense | 59,415 | 547 | 28,301 | — | 88,263 | ||||||||||||||
Intercompany interest (income) expense, net | (27,470 | ) | 17,124 | 10,346 | — | — | |||||||||||||
Loss on debt extinguishment | 2,894 | — | 23,756 | — | 26,650 | ||||||||||||||
Gain on foreign exchange contracts - acquisition related | (18,342 | ) | — | — | — | (18,342 | ) | ||||||||||||
Gain on bargain purchase | — | — | (8,207 | ) | — | (8,207 | ) | ||||||||||||
Interest and other expense (income), net | 470 | (3,773 | ) | 1,056 | — | (2,247 | ) | ||||||||||||
Total other expense, net | 16,967 | 13,898 | 55,252 | — | 86,117 | ||||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | (51,262 | ) | 574,114 | 154,429 | — | 677,281 | |||||||||||||
(Benefit) provision for income taxes | (20,498 | ) | 213,794 | 27,270 | — | 220,566 | |||||||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (795 | ) | — | 203 | — | (592 | ) | ||||||||||||
Equity in earnings of subsidiaries | 487,682 | 22,314 | — | (509,996 | ) | — | |||||||||||||
Income from continuing operations | 456,123 | 382,634 | 127,362 | (509,996 | ) | 456,123 | |||||||||||||
Income from discontinued operations, net of tax | 7,852 | 7,852 | 3,285 | (11,137 | ) | 7,852 | |||||||||||||
Net income | $ | 463,975 | $ | 390,486 | $ | 130,647 | $ | (521,133 | ) | $ | 463,975 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 4,965,355 | $ | 2,357,655 | $ | (130,377 | ) | $ | 7,192,633 | ||||||||
Cost of goods sold | — | 3,010,820 | 1,478,661 | (130,377 | ) | 4,359,104 | |||||||||||||
Gross margin | — | 1,954,535 | 878,994 | — | 2,833,529 | ||||||||||||||
Facility and warehouse expenses | — | 408,828 | 147,213 | — | 556,041 | ||||||||||||||
Distribution expenses | — | 408,112 | 194,785 | — | 602,897 | ||||||||||||||
Selling, general and administrative expenses | 32,946 | 490,530 | 304,857 | — | 828,333 | ||||||||||||||
Restructuring and acquisition related expenses | — | 13,962 | 5,549 | — | 19,511 | ||||||||||||||
Depreciation and amortization | 154 | 82,058 | 39,908 | — | 122,120 | ||||||||||||||
Operating (loss) income | (33,100 | ) | 551,045 | 186,682 | — | 704,627 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense | 47,626 | 669 | 9,565 | — | 57,860 | ||||||||||||||
Intercompany interest (income) expense, net | (41,904 | ) | 28,944 | 12,960 | — | — | |||||||||||||
Interest and other expense (income), net | 99 | (7,414 | ) | 5,052 | — | (2,263 | ) | ||||||||||||
Total other expense, net | 5,821 | 22,199 | 27,577 | — | 55,597 | ||||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | (38,921 | ) | 528,846 | 159,105 | — | 649,030 | |||||||||||||
(Benefit) provision for income taxes | (16,054 | ) | 205,176 | 30,581 | — | 219,703 | |||||||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | (1,000 | ) | 59 | (5,163 | ) | — | (6,104 | ) | |||||||||||
Equity in earnings of subsidiaries | 447,090 | 24,632 | — | (471,722 | ) | — | |||||||||||||
Net income | $ | 423,223 | $ | 348,361 | $ | 123,361 | $ | (471,722 | ) | $ | 423,223 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 4,649,391 | $ | 2,221,831 | $ | (131,158 | ) | $ | 6,740,064 | ||||||||
Cost of goods sold | — | 2,813,427 | 1,405,882 | (131,158 | ) | 4,088,151 | |||||||||||||
Gross margin | — | 1,835,964 | 815,949 | — | 2,651,913 | ||||||||||||||
Facility and warehouse expenses | — | 382,937 | 143,354 | — | 526,291 | ||||||||||||||
Distribution expenses | — | 389,430 | 187,911 | — | 577,341 | ||||||||||||||
Selling, general and administrative expenses | 25,770 | 460,516 | 276,602 | — | 762,888 | ||||||||||||||
Restructuring and acquisition related expenses | — | 8,628 | 6,178 | — | 14,806 | ||||||||||||||
Depreciation and amortization | 218 | 81,253 | 39,248 | — | 120,719 | ||||||||||||||
Operating (loss) income | (25,988 | ) | 513,200 | 162,656 | — | 649,868 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense | 50,636 | 635 | 13,271 | — | 64,542 | ||||||||||||||
Intercompany interest (income) expense, net | (48,556 | ) | 23,865 | 24,691 | — | — | |||||||||||||
Loss on debt extinguishment | 324 | — | — | — | 324 | ||||||||||||||
Interest and other expense (income), net | 230 | (8,359 | ) | 5,243 | — | (2,886 | ) | ||||||||||||
Total other expense, net | 2,634 | 16,141 | 43,205 | — | 61,980 | ||||||||||||||
(Loss) income from continuing operations before (benefit) provision for income taxes | (28,622 | ) | 497,059 | 119,451 | — | 587,888 | |||||||||||||
(Benefit) provision for income taxes | (10,536 | ) | 190,456 | 24,344 | — | 204,264 | |||||||||||||
Equity in earnings (loss) of unconsolidated subsidiaries | — | 40 | (2,145 | ) | — | (2,105 | ) | ||||||||||||
Equity in earnings of subsidiaries | 399,605 | 28,846 | — | (428,451 | ) | — | |||||||||||||
Net income | $ | 381,519 | $ | 335,489 | $ | 92,962 | $ | (428,451 | ) | $ | 381,519 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 463,975 | $ | 390,486 | $ | 130,647 | $ | (521,133 | ) | $ | 463,975 | ||||||||
Other comprehensive (loss) income: | |||||||||||||||||||
Foreign currency translation | (175,639 | ) | (48,914 | ) | (177,911 | ) | 226,825 | (175,639 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 9,023 | 133 | 389 | (522 | ) | 9,023 | |||||||||||||
Net change in unrealized gains/losses on pension plans, net of tax | 4,911 | 3,962 | 1,061 | (5,023 | ) | 4,911 | |||||||||||||
Total other comprehensive loss | (161,705 | ) | (44,819 | ) | (176,461 | ) | 221,280 | (161,705 | ) | ||||||||||
Total comprehensive income | $ | 302,270 | $ | 345,667 | $ | (45,814 | ) | $ | (299,853 | ) | $ | 302,270 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 423,223 | $ | 348,361 | $ | 123,361 | $ | (471,722 | ) | $ | 423,223 | ||||||||
Other comprehensive (loss) income: | |||||||||||||||||||
Foreign currency translation | (69,817 | ) | (20,359 | ) | (65,878 | ) | 86,237 | (69,817 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 2,469 | — | 294 | (294 | ) | 2,469 | |||||||||||||
Net change in unrealized gains/losses on pension plans, net of tax | 2,103 | — | 2,103 | (2,103 | ) | 2,103 | |||||||||||||
Total other comprehensive loss | (65,245 | ) | (20,359 | ) | (63,481 | ) | 83,840 | (65,245 | ) | ||||||||||
Total comprehensive income | $ | 357,978 | $ | 328,002 | $ | 59,880 | $ | (387,882 | ) | $ | 357,978 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 381,519 | $ | 335,489 | $ | 92,962 | $ | (428,451 | ) | $ | 381,519 | ||||||||
Other comprehensive (loss) income: | |||||||||||||||||||
Foreign currency translation | (51,979 | ) | (17,710 | ) | (49,559 | ) | 67,269 | (51,979 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 2,195 | — | (444 | ) | 444 | 2,195 | |||||||||||||
Net change in unrealized gain on pension plans, net of tax | (10,452 | ) | — | (10,452 | ) | 10,452 | (10,452 | ) | |||||||||||
Total other comprehensive loss | (60,236 | ) | (17,710 | ) | (60,455 | ) | 78,165 | (60,236 | ) | ||||||||||
Total comprehensive income | $ | 321,283 | $ | 317,779 | $ | 32,507 | $ | (350,286 | ) | $ | 321,283 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In thousands) | |||||||||||||||||||
Year Ended December 31, 2016 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by operating activities | $ | 308,299 | $ | 539,318 | $ | 99,894 | $ | (312,497 | ) | $ | 635,014 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | (36 | ) | (120,761 | ) | (86,277 | ) | — | (207,074 | ) | ||||||||||
Investment and intercompany note activity with subsidiaries | (1,720,732 | ) | — | — | 1,720,732 | — | |||||||||||||
Acquisitions, net of cash acquired | — | (685,278 | ) | (664,061 | ) | — | (1,349,339 | ) | |||||||||||
Proceeds from foreign exchange contracts | 18,342 | — | — | — | 18,342 | ||||||||||||||
Other investing activities, net | 3 | (2,447 | ) | (169,413 | ) | — | (171,857 | ) | |||||||||||
Net cash used in investing activities | (1,702,423 | ) | (808,486 | ) | (919,751 | ) | 1,720,732 | (1,709,928 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from exercise of stock options | 7,963 | — | — | — | 7,963 | ||||||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (4,438 | ) | — | — | — | (4,438 | ) | ||||||||||||
Debt issuance costs | (7,104 | ) | — | (9,450 | ) | — | (16,554 | ) | |||||||||||
Proceeds from issuance of Euro notes | — | — | 563,450 | — | 563,450 | ||||||||||||||
Borrowings under revolving credit facilities | 1,744,408 | — | 892,188 | — | 2,636,596 | ||||||||||||||
Repayments under revolving credit facilities | (654,000 | ) | — | (1,094,664 | ) | — | (1,748,664 | ) | |||||||||||
Borrowings under term loans | 332,954 | — | 249,161 | — | 582,115 | ||||||||||||||
Repayments under term loans | (10,898 | ) | — | (244,894 | ) | — | (255,792 | ) | |||||||||||
Borrowings under receivables securitization facility | — | — | 106,400 | — | 106,400 | ||||||||||||||
Repayments under receivables securitization facility | — | — | (69,400 | ) | — | (69,400 | ) | ||||||||||||
Repayments of other debt, net | 653 | (2,935 | ) | (28,874 | ) | — | (31,156 | ) | |||||||||||
Repayment of Rhiag debt and related payments | — | — | (543,347 | ) | — | (543,347 | ) | ||||||||||||
Payments of other obligations | — | (1,436 | ) | — | (1,436 | ) | |||||||||||||
Investment and intercompany note activity with parent | — | 608,270 | 1,112,462 | (1,720,732 | ) | — | |||||||||||||
Dividends | — | (312,497 | ) | — | 312,497 | — | |||||||||||||
Net cash provided by financing activities | 1,409,538 | 291,402 | 933,032 | (1,408,235 | ) | 1,225,737 | |||||||||||||
Effect of exchange rate changes on cash and equivalents | — | (157 | ) | (3,547 | ) | — | (3,704 | ) | |||||||||||
Net increase in cash and equivalents | 15,414 | 22,077 | 109,628 | — | 147,119 | ||||||||||||||
Cash and equivalents, beginning of period | 17,616 | 13,432 | 56,349 | — | 87,397 | ||||||||||||||
Cash and equivalents of continuing and discontinued operations, end of period | 33,030 | 35,509 | 165,977 | — | 234,516 | ||||||||||||||
Less: Cash and equivalents of discontinued operations, end of period | — | (149 | ) | (6,967 | ) | — | (7,116 | ) | |||||||||||
Cash and equivalents, end of period | $ | 33,030 | $ | 35,360 | $ | 159,010 | $ | — | $ | 227,400 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In thousands) | |||||||||||||||||||
Year Ended December 31, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by operating activities | $ | 262,812 | $ | 393,422 | $ | 136,361 | $ | (248,313 | ) | $ | 544,282 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | (1 | ) | (85,868 | ) | (84,621 | ) | — | (170,490 | ) | ||||||||||
Investment and intercompany note activity with subsidiaries | (66,712 | ) | — | — | 66,712 | — | |||||||||||||
Acquisitions, net of cash acquired | — | (118,963 | ) | (41,554 | ) | — | (160,517 | ) | |||||||||||
Other investing activities, net | — | 5,446 | (4,432 | ) | — | 1,014 | |||||||||||||
Net cash used in investing activities | (66,713 | ) | (199,385 | ) | (130,607 | ) | 66,712 | (329,993 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from exercise of stock options | 8,168 | — | — | — | 8,168 | ||||||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (7,581 | ) | — | — | — | (7,581 | ) | ||||||||||||
Debt issuance costs | — | — | (97 | ) | — | (97 | ) | ||||||||||||
Borrowings under revolving credit facilities | 212,000 | — | 101,142 | — | 313,142 | ||||||||||||||
Repayments under revolving credit facilities | (352,000 | ) | — | (93,282 | ) | — | (445,282 | ) | |||||||||||
Repayments under term loans | (22,500 | ) | — | — | — | (22,500 | ) | ||||||||||||
Borrowings under receivables securitization facility | — | — | 3,858 | — | 3,858 | ||||||||||||||
Repayments under receivables securitization facility | — | — | (35,758 | ) | — | (35,758 | ) | ||||||||||||
Repayments (borrowings) of other debt, net | (31,500 | ) | (3,457 | ) | 5,261 | — | (29,696 | ) | |||||||||||
Payments of other obligations | — | (21,896 | ) | (895 | ) | — | (22,791 | ) | |||||||||||
Investment and intercompany note activity with parent | — | 60,910 | 5,802 | (66,712 | ) | — | |||||||||||||
Dividends | — | (248,313 | ) | — | 248,313 | — | |||||||||||||
Net cash used in financing activities | (193,413 | ) | (212,756 | ) | (13,969 | ) | 181,601 | (238,537 | ) | ||||||||||
Effect of exchange rate changes on cash and equivalents | — | 48 | (3,008 | ) | — | (2,960 | ) | ||||||||||||
Net increase (decrease) in cash and equivalents | 2,686 | (18,671 | ) | (11,223 | ) | — | (27,208 | ) | |||||||||||
Cash and equivalents, beginning of period | 14,930 | 32,103 | 67,572 | — | 114,605 | ||||||||||||||
Cash and equivalents, end of period | $ | 17,616 | $ | 13,432 | $ | 56,349 | $ | — | $ | 87,397 |
LKQ CORPORATION AND SUBSIDIARIES Condensed Consolidating Statements of Cash Flows (In thousands) | |||||||||||||||||||
Year Ended December 31, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 289,035 | $ | 427,249 | $ | (53,348 | ) | $ | (274,225 | ) | $ | 388,711 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | (44 | ) | (85,182 | ) | (55,724 | ) | — | (140,950 | ) | ||||||||||
Investment and intercompany note activity with subsidiaries | (477,007 | ) | (608 | ) | — | 477,615 | — | ||||||||||||
Acquisitions, net of cash acquired | — | (635,171 | ) | (140,750 | ) | — | (775,921 | ) | |||||||||||
Other investing activities, net | — | 768 | (4,891 | ) | — | (4,123 | ) | ||||||||||||
Net cash used in investing activities | (477,051 | ) | (720,193 | ) | (201,365 | ) | 477,615 | (920,994 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from exercise of stock options | 9,324 | — | — | — | 9,324 | ||||||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (443 | ) | — | — | — | (443 | ) | ||||||||||||
Debt issuance costs | (3,675 | ) | — | (75 | ) | — | (3,750 | ) | |||||||||||
Borrowings under revolving credit facilities | 867,000 | — | 720,644 | — | 1,587,644 | ||||||||||||||
Repayments under revolving credit facilities | (727,000 | ) | — | (371,518 | ) | — | (1,098,518 | ) | |||||||||||
Borrowings under term loans | 11,250 | — | — | — | 11,250 | ||||||||||||||
Repayments under term loans | (16,875 | ) | — | — | — | (16,875 | ) | ||||||||||||
Borrowings under receivables securitization facility | — | — | 95,050 | — | 95,050 | ||||||||||||||
Repayments under receivables securitization facility | — | — | (150 | ) | — | (150 | ) | ||||||||||||
Repayments of other debt, net | (1,921 | ) | (2,310 | ) | (35,820 | ) | — | (40,051 | ) | ||||||||||
Payments of other obligations | — | (464 | ) | (41,528 | ) | — | (41,992 | ) | |||||||||||
Other financing activities, net | (12,640 | ) | 12,340 | — | — | (300 | ) | ||||||||||||
Investment and intercompany note activity with parent | — | 576,384 | (98,769 | ) | (477,615 | ) | — | ||||||||||||
Dividends | — | (274,225 | ) | — | 274,225 | — | |||||||||||||
Net cash provided by financing activities | 125,020 | 311,725 | 267,834 | (203,390 | ) | 501,189 | |||||||||||||
Effect of exchange rate changes on cash and equivalents | — | (371 | ) | (4,418 | ) | — | (4,789 | ) | |||||||||||
Net (decrease) increase in cash and equivalents | (62,996 | ) | 18,410 | 8,703 | — | (35,883 | ) | ||||||||||||
Cash and equivalents, beginning of period | 77,926 | 13,693 | 58,869 | — | 150,488 | ||||||||||||||
Cash and equivalents, end of period | $ | 14,930 | $ | 32,103 | $ | 67,572 | $ | — | $ | 114,605 |
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