LKQ CORP, 10-Q filed on 8/6/2018
Quarterly Report
v3.10.0.1
Document and Entity Information - shares
6 Months Ended
Jun. 30, 2018
Jul. 27, 2018
Document and Entity Information [Abstract]    
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Jun. 30, 2018  
Document Fiscal Year Focus 2018  
Document Fiscal Period Focus Q2  
Trading Symbol LKQ  
Entity Registrant Name LKQ CORP  
Entity Central Index Key 0001065696  
Current Fiscal Year End Date --12-31  
Entity Filer Category Large Accelerated Filer  
Entity Common Stock, Shares Outstanding   318,081,581
v3.10.0.1
Unaudited Condensed Consolidated Statements of Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Income Statement [Abstract]        
Revenue $ 3,030,751 $ 2,458,411 $ 5,751,515 $ 4,801,254
Cost of goods sold 1,868,872 1,493,402 3,535,665 2,906,152
Gross margin 1,161,879 965,009 2,215,850 1,895,102
Selling, general and administrative expenses (1) 826,044 664,270 [1] 1,592,935 [1] 1,307,087 [1]
Restructuring and acquisition related expenses 15,878 2,521 19,932 5,449
Depreciation and amortization 63,163 53,645 119,621 102,301
Operating income 256,794 244,573 483,362 480,265
Other expense (income):        
Interest expense, net 38,272 24,596 66,787 48,584
Gains on bargain purchases (328) (3,077) (328) (3,077)
Other expense (income), net 755 (2,731) (2,127) (3,777)
Total other expense, net 38,699 18,788 64,332 41,730
Income from continuing operations before provision for income taxes 218,095 225,785 419,030 438,535
Provision for income taxes 60,775 75,862 110,359 148,017
Equity in earnings of unconsolidated subsidiaries 546 991 1,958 1,205
Income from continuing operations 157,866 150,914 310,629 291,723
Net loss from discontinued operations 0 0 0 (4,531)
Net income 157,866 150,914 310,629 287,192
Less: net income attributable to noncontrolling interest 859 0 662 0
Net income attributable to LKQ stockholders $ 157,007 $ 150,914 $ 309,967 $ 287,192
Basic earnings per share: (2)        
Income from continuing operations $ 0.51 $ 0.49 $ 1.00 $ 0.95
Net loss from discontinued operations       (0.01)
Net income 0.51 0.49 1.00 0.93
Less: net income attributable to noncontrolling interest 0.00   0.00  
Net income attributable to LKQ stockholders [2] 0.50 0.49 1.00 0.93
Diluted earnings per share: (2)        
Income from continuing operations 0.50 0.49 0.99 0.94
Net loss from discontinued operations       (0.01)
Net income 0.50 0.49 0.99 0.93
Net income attributable to Noncontrolling Interest Per Share, Diluted 0.00   0.00  
Net income attributable to LKQ stockholders [2] $ 0.50 $ 0.49 $ 0.99 $ 0.93
[1] (1) Selling, general and administrative expenses contain facility and warehouses expenses and distribution expenses that were previously shown separately.
[2] (2) The sum of the individual earnings per share amounts may not equal the total due to rounding.
v3.10.0.1
Unaudited Condensed Consolidated Statements of Comprehensive Income - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Statement of Comprehensive Income [Abstract]        
Net income $ 157,866 $ 150,914 $ 310,629 $ 287,192
Less: net income attributable to noncontrolling interest 859 0 662 0
Net income attributable to LKQ stockholders 157,007 150,914 309,967 287,192
Other comprehensive income (loss):        
Foreign currency translation, net of tax (105,164) 93,597 (56,679) 115,176
Net change in unrealized gains/losses on cash flow hedges, net of tax 2,406 (930) 5,660 2,233
Net change in unrealized gains/losses on pension plans, net of tax (807) (862) (1,428) (3,903)
Net change in other comprehensive income (loss) from unconsolidated subsidiaries 2,122 (439) 1,517 (601)
Other comprehensive (loss) income (101,443) 91,366 (50,930) 112,905
Comprehensive income 56,423 242,280 259,699 400,097
Less: comprehensive income attributable to noncontrolling interest 859   662  
Comprehensive income attributable to LKQ stockholders $ 55,564 $ 242,280 $ 259,037 $ 400,097
v3.10.0.1
Unaudited Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Current assets:    
Cash and cash equivalents $ 345,202 $ 279,766
Receivables, net 1,301,514 1,027,106
Inventories 2,718,158 2,380,783
Prepaid expenses and other current assets 228,732 134,479
Total current assets 4,593,606 3,822,134
Property, plant and equipment, net 1,188,464 913,089
Intangible assets:    
Goodwill 4,421,976 3,536,511
Other intangibles, net 973,031 743,769
Equity method investments 202,653 208,404
Other assets 168,901 142,965
Total assets 11,548,631 9,366,872
Current liabilities:    
Accounts payable 981,643 788,613
Accrued expenses:    
Accrued payroll-related liabilities 163,294 143,424
Other accrued expenses 312,702 218,600
Refund liability 103,694 0
Other current liabilities 49,603 45,727
Current portion of long-term obligations 177,372 126,360
Total current liabilities 1,788,308 1,322,724
Long-term obligations, excluding current portion 4,261,176 3,277,620
Deferred income taxes 332,602 252,359
Other noncurrent liabilities 389,570 307,516
Commitments and contingencies
Stockholders’ equity:    
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 317,820,824 and 309,126,386 shares issued and outstanding at June 30, 2018 and December 31, 2017, respectively 3,178 3,091
Additional paid-in capital 1,403,630 1,141,451
Retained earnings 3,428,725 3,124,103
Accumulated other comprehensive loss (116,061) (70,476)
Total Company stockholders' equity 4,719,472 4,198,169
Noncontrolling interest 57,503 8,484
Total stockholders' equity 4,776,975 4,206,653
Total liabilities and stockholders’ equity $ 11,548,631 $ 9,366,872
v3.10.0.1
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2018
Dec. 31, 2017
Statement of Financial Position [Abstract]    
Common stock, par value $ 0.01 $ 0.01
Common stock, shares authorized 1,000,000,000 1,000,000,000
Common stock, shares issued 317,820,824 309,126,386
Common stock, shares outstanding 317,820,824 309,126,386
v3.10.0.1
Unaudited Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES:    
Net income $ 310,629 $ 287,192
Adjustments to reconcile net income to net cash provided by operating activities:    
Depreciation and amortization 129,504 106,606
Stock-based compensation expense 11,844 12,443
Loss on sale of business   8,580
Other 4,356 (4,740)
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:    
Receivables, net (112,178) (98,362)
Inventories (12,777) (20,378)
Prepaid income taxes/income taxes payable 6,090 4,418
Accounts payable (25,380) 63,589
Other operating assets and liabilities 16,581 2,749
Net cash provided by operating activities 328,669 362,097
CASH FLOWS FROM INVESTING ACTIVITIES:    
Purchases of property, plant and equipment (115,421) (91,545)
Acquisitions, net of cash acquired (1,135,970) (100,728)
Proceeds from disposals of business/investment   301,297
Other investing activities, net 2,174 4,712
Net cash (used in) provided by investing activities (1,249,217) 113,736
CASH FLOWS FROM FINANCING ACTIVITIES:    
Proceeds from exercise of stock options 2,922 5,151
Taxes paid related to net share settlements of stock-based compensation awards (3,834) (3,955)
Debt issuance costs (16,759)  
Proceeds from issuance of Euro Notes (2026/28) 1,232,100  
Borrowings under revolving credit facilities 613,658 162,794
Repayments under revolving credit facilities (766,597) (585,454)
Repayments under term loans (8,810) (18,590)
Borrowings under receivables securitization facility   150
Repayments under receivables securitization facility   (5,000)
(Repayments) borrowings of other debt, net (2,444) 19,591
Payments of other obligations   (2,079)
Other financing activities, net 4,107 4,316
Net cash provided by (used in) financing activities 1,054,343 (423,076)
Effect of exchange rate changes on cash and cash equivalents (68,359) 16,271
Net increase in cash and cash equivalents 65,436 69,028
Cash and cash equivalents of continuing operations, beginning of period 279,766 227,400
Add: Cash and cash equivalents of discontinued operations, beginning of period   7,116
Cash and cash equivalents of continuing and discontinued operations, beginning of period 279,766 234,516
Cash and cash equivalents, end of period 345,202 303,544
Supplemental disclosure of cash paid for:    
Income taxes, net of refunds 110,745 150,555
Interest 55,768 46,606
Supplemental disclosure of noncash investing and financing activities:    
Stock issued in acquisitions 251,334  
Contingent consideration liabilities 34 4,279
Notes payable and other financing obligations, including notes issued and debt assumed in connection with business acquisitions 65,460 5,965
Noncash property, plant and equipment additions $ 7,004 4,185
Notes and other financing receivables in connection with disposals of business/investment   $ 5,848
v3.10.0.1
Unaudited Condensed Consolidated Statements of Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Common Stock
Additional Paid-In Capital
Retained Earnings
Accumulated Other Comprehensive Income (Loss)
Noncontrolling Interest
Noncontrolling interest $ 8,484         $ 8,484
January 1, 2018 at Dec. 31, 2017   309,127        
January 1, 2018 at Dec. 31, 2017 4,206,653 $ 3,091 $ 1,141,451 $ 3,124,103 $ (70,476)  
Net income 310,629          
Less: net income attributable to noncontrolling interest 662         662
Net income attributable to LKQ stockholders 309,967     309,967    
Other comprehensive income (50,930)     (50,930)    
Stock issued in acquisitions   8,056        
Stock issued in acquisitions 251,334 $ 81 251,253      
Vesting of restricted stock units, net of shares withheld for employee tax   344        
Vesting of restricted stock units, net of shares withheld for employee tax (2,777) $ 3 (2,780)      
Stock-based compensation expense 11,844   11,844      
Exercise of stock options   321        
Exercise of stock options 2,922 $ 3 2,919      
Shares withheld for net share settlement of stock option awards   (27)        
Shares withheld for net share settlement of stock option awards (1,057)   (1,057)      
Adoption of ASU 2018-02 (see Note 4) 5,345     (5,345) 5,345  
Capital contributions from noncontrolling interest shareholder 4,107         4,107
Acquired noncontrolling interest 44,250         44,250
June 30, 2018 at Jun. 30, 2018   317,821        
June 30, 2018 at Jun. 30, 2018 4,776,975 $ 3,178 $ 1,403,630 $ 3,428,725 $ (116,061) $ 57,503
Noncontrolling interest $ 57,503          
v3.10.0.1
Interim Financial Statements (Notes)
6 Months Ended
Jun. 30, 2018
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Interim Financial Statements
Interim Financial Statements
The accompanying unaudited condensed consolidated financial statements represent the consolidation of LKQ Corporation, a Delaware corporation, and its subsidiaries. LKQ Corporation is a holding company and all operations are conducted by subsidiaries. When the terms "LKQ," "the Company," "we," "us," or "our" are used in this document, those terms refer to LKQ Corporation and its consolidated subsidiaries.
We have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to interim financial statements. Accordingly, certain information related to our significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normally recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented.
Operating results for interim periods are not necessarily indicative of the results that can be expected for any subsequent interim period or for a full year. These interim financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2017 filed with the SEC on February 28, 2018 ("2017 Form 10-K").
v3.10.0.1
Business Combinations (Notes)
6 Months Ended
Jun. 30, 2018
Business Combinations [Abstract]  
Business Combinations
Business Combinations
On May 30, 2018, we acquired Stahlgruber GmbH ("Stahlgruber"), a leading European wholesale distributor of aftermarket spare parts for passenger cars, tools, capital equipment and accessories with operations in Germany, Austria, Slovenia, Croatia, and with further sales to Switzerland. Total acquisition date fair value of the consideration for our Stahlgruber acquisition was €1.2 billion ($1.4 billion), composed of €1.0 billion ($1.1 billion) of cash paid (net of cash acquired), and €215 million ($251 million) of newly issued shares of LKQ common stock. We financed the acquisition with the proceeds from €1.0 billion ($1.2 billion) of senior notes, the direct issuance to Stahlgruber's owner of 8,055,569 newly issued shares of LKQ common stock, and borrowings under our existing revolving credit facility.
On May 3, 2018, the European Commission cleared the acquisition for the entire European Union, except with respect to the wholesale automotive parts business in the Czech Republic. The acquisition of the Czech Republic wholesale business has been referred to the Czech Republic competition authority for review. The Czech Republic wholesale business represents an immaterial portion of Stahlgruber's revenue and profitability.
We recorded $931 million of goodwill related to our acquisition of Stahlgruber, of which we expect $240 million to be deductible for income tax purposes. In the period between the acquisition date and June 30, 2018, Stahlgruber, which is reported in our Europe reportable segment, generated revenue of $168 million and operating income of $6 million.
In addition to our acquisition of Stahlgruber, we completed acquisitions of one wholesale business in North America and four wholesale businesses in Europe. Total acquisition date fair value of the consideration for these acquisitions was $7 million, composed of $6 million of cash paid (net of cash acquired) and $1 million of notes payable. During the six months ended June 30, 2018, we recorded $3 million of goodwill related to these acquisitions, which we do not expect to be deductible for income tax purposes. In the period between the acquisition dates and June 30, 2018, these acquisitions generated revenue of $4 million and operating income of $0.5 million.
During the year ended December 31, 2017, we completed 26 acquisitions including 6 wholesale businesses in North America, 16 wholesale businesses in Europe and 4 Specialty businesses. Our acquisitions in Europe included the acquisition of four aftermarket parts distribution businesses in Belgium in July 2017. Our Specialty acquisitions included the acquisition of the aftermarket business of Warn Industries, Inc. ("Warn"), a leading designer, manufacturer and marketer of high performance vehicle equipment and accessories, in November 2017.
Total acquisition date fair value of the consideration for our 2017 acquisitions was $542 million, composed of $510 million of cash paid (net of cash acquired), $6 million for the estimated value of contingent payments to former owners (with maximum potential payments totaling $19 million), $5 million of other purchase price obligations (non-interest bearing) and $20 million of notes payable. We typically fund our acquisitions using borrowings under our credit facilities or other financing arrangements. During the year ended December 31, 2017, we recorded $307 million of goodwill related to these acquisitions, of which we expect $21 million to be deductible for income tax purposes.
Our acquisitions are accounted for under the purchase method of accounting and are included in our consolidated financial statements from the dates of acquisition. The purchase prices were allocated to the net assets acquired based upon estimated fair values at the dates of acquisition. The purchase price allocations for the acquisitions made during the six months ended June 30, 2018 and the last six months of the year ended December 31, 2017 are preliminary as we are in the process of determining the following: 1) valuation amounts for certain receivables, inventories and fixed assets acquired; 2) valuation amounts for certain intangible assets acquired; 3) the acquisition date fair value of certain liabilities assumed; and 4) the tax basis of the entities acquired. We have recorded preliminary estimates for certain of the items noted above and will record adjustments, if any, to the preliminary amounts upon finalization of the valuations. During the first half of 2018, the measurement period adjustments recorded for acquisitions completed in prior periods were not material.
The purchase price allocations for the acquisitions completed during the six months ended June 30, 2018 and the year ended December 31, 2017 are as follows (in thousands):
 
Six Months Ended
 
Year Ended
 
June 30, 2018
 
December, 31, 2017
 
Stahlgruber
 
Other Acquisitions (2)
 
Total
 
All
Acquisitions
 (1)
Receivables
$
143,785

 
$
3,276

 
$
147,061

 
$
73,782

Receivable reserves
(2,818
)
 
(663
)
 
(3,481
)
 
(7,032
)
Inventories (3)
352,053

 
4,168

 
356,221

 
150,342

Prepaid expenses and other current assets
7,287

 
28

 
7,315

 
(295
)
Property, plant and equipment
260,638

 
2,046

 
262,684

 
41,039

Goodwill
930,567

 
(676
)
 
929,891

 
314,817

Other intangibles
280,399

 
5,134

 
285,533

 
181,216

Other assets
16,625

 
265

 
16,890

 
3,257

Deferred income taxes
(98,497
)
 
(1,605
)
 
(100,102
)
 
(65,087
)
Current liabilities assumed
(315,175
)
 
(6,915
)
 
(322,090
)
 
(111,484
)
Debt assumed
(65,852
)
 

 
(65,852
)
 
(33,586
)
Other noncurrent liabilities assumed (4)
(83,637
)
 

 
(83,637
)
 
(1,917
)
Noncontrolling interest
(44,250
)
 

 
(44,250
)
 

Contingent consideration liabilities

 
(34
)
 
(34
)
 
(6,234
)
Other purchase price obligations
(2,349
)
 
3,312

 
963

 
(5,074
)
Stock issued
(251,334
)
 

 
(251,334
)
 

Notes issued

 
(571
)
 
(571
)
 
(20,187
)
Settlement of pre-existing balances

 

 

 
242

Gains on bargain purchases (5)

 
(328
)
 
(328
)
 
(3,870
)
Settlement of other purchase price obligations (non-interest bearing)

 
1,091

 
1,091

 
3,159

Cash used in acquisitions, net of cash acquired
$
1,127,442

 
$
8,528

 
$
1,135,970

 
$
513,088

(1)
The amounts recorded during the year ended December 31, 2017 include $6 million and $3 million of adjustments to reduce property, plant and equipment and other assets for Rhiag-Inter Auto Parts Italia S.p.A. (“Rhiag”) and Pittsburgh Glass Works LLC (“PGW”), respectively.
(2)
The amounts recorded during the six months ended June 30, 2018 include a $5 million adjustment to increase other intangibles related to our Warn acquisition and $4 million of adjustments to reduce other purchase price obligations related to other 2017 acquisitions.
(3)
The amounts for our 2017 acquisitions include a $4 million step-up adjustment related to our Warn acquisition.
(4)
The amount recorded for our acquisition of Stahlgruber includes a $75 million liability for certain pension obligations. See Note 13, "Employee Benefit Plans" for information related to our defined benefit plans.
(5)
The amount recorded during the six months ended June 30, 2018 is due to the gain on bargain purchase related to an acquisition in Europe completed in the second quarter of 2017 as a result of a change in the acquisition date fair value of the consideration. The amount recorded during the year ended December 31, 2017 includes a $2 million increase to the gain on bargain purchase recorded for our Andrew Page Limited ("Andrew Page") acquisition as a result of changes to our estimate of the fair value of the net assets acquired. The remainder of the gain on bargain purchase recorded during the year ended December 31, 2017 is an immaterial amount related to another acquisition in Europe completed in the second quarter of 2017.
The fair value of our intangible assets is based on a number of inputs, including projections of future cash flows, assumed royalty rates and customer attrition rates, all of which are Level 3 inputs. The fair value of our property, plant and equipment is determined using inputs such as market comparables and current replacement or reproduction costs of the asset, adjusted for physical, functional and economic factors; these adjustments to arrive at fair value use unobservable inputs in which little or no market data exists, and therefore, these inputs are considered to be Level 3 inputs. See Note 12, "Fair Value Measurements" for further information regarding the tiers in the fair value hierarchy.
The acquisition of Stahlgruber expands LKQ's geographic presence in continental Europe and serves as an additional strategic hub for our European operations. In addition, we believe the acquisition of Stahlgruber will allow for continued improvement in procurement, logistics and infrastructure optimization. The primary objectives of our other acquisitions made during the six months ended June 30, 2018 and the year ended December 31, 2017 were to create economic value for our stockholders by enhancing our position as a leading source for alternative collision and mechanical repair products and to expand into other product lines and businesses that may benefit from our operating strengths. Certain 2017 acquisitions were completed to enable us to align our distribution model in the Benelux region.
When we identify potential acquisitions, we attempt to target companies with a leading market presence, an experienced management team and workforce that provides a fit with our existing operations, and strong cash flows. For certain of our acquisitions, we have identified cost savings and synergies as a result of integrating the company with our existing business that provide additional value to the combined entity. In many cases, acquiring companies with these characteristics will result in purchase prices that include a significant amount of goodwill.
The following pro forma summary presents the effect of the businesses acquired during the six months ended June 30, 2018 as though the businesses had been acquired as of January 1, 2017, and the businesses acquired during the year ended December 31, 2017 as though they had been acquired as of January 1, 2016. The pro forma adjustments are based upon unaudited financial information of the acquired entities (in thousands, except per share data):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Revenue, as reported
$
3,030,751

 
$
2,458,411

 
$
5,751,515

 
$
4,801,254

Revenue of purchased businesses for the period prior to acquisition:
 
 
 
 
 
 
 
Stahlgruber
336,318

 
432,658

 
815,405

 
813,042

Other acquisitions
2,687

 
127,358

 
8,844

 
272,063

Pro forma revenue
$
3,369,756

 
$
3,018,427

 
$
6,575,764

 
$
5,886,359

 
 
 
 
 
 
 
 
Income from continuing operations, as reported (1)
$
157,866

 
$
150,914

 
$
310,629

 
$
291,723

Income from continuing operations of purchased businesses for the period prior to acquisition, and pro forma purchase accounting adjustments:
 
 
 
 
 
 
 
Stahlgruber
9,864

 
1,267

 
2,635

 
(6,321
)
Other acquisitions
69

 
5,067

 
238

 
12,579

Acquisition related expenses, net of tax (2)
11,744

 
1,465

 
13,305

 
2,709

Pro forma income from continuing operations
$
179,543

 
$
158,713

 
$
326,807

 
$
300,690

 
 
 
 
 
 
 
 
Earnings per share from continuing operations, basic - as reported
$
0.51

 
$
0.49

 
$
1.00

 
$
0.95

Effect of purchased businesses for the period prior to acquisition:
 
 
 
 
 
 
 
Stahlgruber
0.03

 
0.00

 
0.01

 
(0.02
)
Other acquisitions
0.00

 
0.02

 
0.00

 
0.04

Acquisition related expenses, net of tax (2)
0.04

 
0.00

 
0.04

 
0.01

Impact of share issuance from acquisition of Stahlgruber
(0.01
)
 
(0.01
)
 
(0.02
)
 
(0.02
)
Pro forma earnings per share from continuing operations, basic (3) 
$
0.56

 
$
0.50

 
$
1.03

 
$
0.95

 
 
 
 
 
 
 
 
Earnings per share from continuing operations, diluted - as reported
$
0.50

 
$
0.49

 
$
0.99

 
$
0.94

Effect of purchased businesses for the period prior to acquisition:
 
 
 
 
 
 
 
Stahlgruber
0.03

 
0.00

 
0.01

 
(0.02
)
Other acquisitions
0.00

 
0.02

 
0.00

 
0.04

Acquisition related expenses, net of tax (2)
0.04

 
0.00

 
0.04

 
0.01

Impact of share issuance from acquisition of Stahlgruber
(0.01
)
 
(0.01
)
 
(0.02
)
 
(0.02
)
Pro forma earnings per share from continuing operations, diluted (3) 
$
0.56

 
$
0.50

 
$
1.02

 
$
0.94


(1)
Includes interest expense for the period from April 9, 2018 through June 30, 2018 recorded on the senior notes issued as part of our acquisition of Stahlgruber.
(2)
Includes expenses related to acquisitions closed in the period and excludes expenses for acquisitions not yet completed.
(3)
The sum of the individual earnings per share amounts may not equal the total due to rounding.
Unaudited pro forma supplemental information is based upon accounting estimates and judgments that we believe are reasonable. The unaudited pro forma supplemental information includes the effect of purchase accounting adjustments, such as the adjustment of inventory acquired to fair value, adjustments to depreciation on acquired property, plant and equipment, adjustments to rent expense for above or below market leases, adjustments to amortization on acquired intangible assets, adjustments to interest expense, and the related tax effects. The pro forma impact of our acquisitions also reflects the elimination of acquisition related expenses, net of tax. Refer to Note 6, "Restructuring and Acquisition Related Expenses," for further information regarding our acquisition related expenses. The pro forma information also includes the impact of the common stock issued to Stahlgruber as if it were issued on January 1, 2017. These pro forma results are not necessarily indicative of what would have occurred if the acquisitions had been in effect for the periods presented or of future results.
v3.10.0.1
Discontinued Operations (Notes)
6 Months Ended
Jun. 30, 2018
Discontinued Operations [Abstract]  
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block]
Discontinued Operations
On March 1, 2017, LKQ completed the sale of the glass manufacturing business of its PGW subsidiary to a subsidiary of Vitro S.A.B. de C.V. ("Vitro") for a sales price of $301 million, including cash received of $316 million, net of cash disposed of $15 million. Related to this transaction, the remaining portion of the Glass operating segment was combined with our Wholesale - North America operating segment, which is part of our North America reportable segment, in the first quarter of 2017. See Note 16, "Segment and Geographic Information" for further information regarding our segments.
In connection with the Stock and Asset Purchase Agreement, the Company and Vitro entered into a twelve-month Transition Services Agreement commencing on the transaction date with two six-month renewal periods, a three-year Purchase and Supply Agreement, and an Intellectual Property Agreement.
The following table summarizes the operating results of the Company’s discontinued operations related to the sale described above for the six months ended June 30, 2017, as presented in Net loss from discontinued operations on the Unaudited Condensed Consolidated Statements of Income (in thousands):
 
Six Months Ended
 
June 30, 2017
Revenue
$
111,130

Cost of goods sold
100,084

Selling, general and administrative expenses
8,369

Operating income
2,677

Interest and other income, net (1)
1,204

Income from discontinued operations before taxes
3,881

Provision for income taxes
3,598

Equity in loss of unconsolidated subsidiaries
(534
)
Loss from discontinued operations, net of tax
(251
)
Loss on sale of discontinued operations, net of tax (2)
(4,280
)
Net loss from discontinued operations
$
(4,531
)

(1) The Company elected to allocate interest expense to discontinued operations based on the expected debt to be repaid. Under this approach, allocated interest from January 1, 2017 through the date of sale was $2 million. This expense was offset by foreign currency gains.
(2) In the first quarter of 2017, upon closing of the sale and write-off of the net assets of the glass manufacturing business, we recorded a pre-tax loss on sale of $9 million, and a $4 million tax benefit. The incremental loss primarily reflects a $6 million payable for intercompany sales from the glass manufacturing business to the aftermarket automotive glass distribution business incurred prior to closing, which was paid by LKQ during the second quarter of 2017, and capital expenditures in 2017 that were not reimbursed by the buyer.
The glass manufacturing business had $4 million of operating cash outflows, $4 million of investing cash outflows mainly consisting of capital expenditures, and $15 million of financing cash inflows made up of parent financing for the period from January 1, 2017 through March 1, 2017.
Pursuant to the Purchase and Supply Agreement, our aftermarket automotive glass distribution business will source various products from Vitro's glass manufacturing business annually for a three-year period beginning on March 1, 2017. Between January 1, 2017 and the sale date of March 1, 2017, intercompany sales between the glass manufacturing business and the continuing aftermarket automotive glass distribution business of PGW, which were eliminated in consolidation, were $8 million. All purchases from Vitro, including those outside of the Purchase and Supply Agreement, were $8 million and $18 million for the three and six months ended June 30, 2018, respectively, and were $13 million and $17 million for the three months ended June 30, 2017 and the period between the sale date of March 1, 2017 and June 30, 2017, respectively.
v3.10.0.1
Summary of Significant Accounting Policies
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Receivables, Policy [Policy Text Block]
We have a reserve for uncollectible accounts, which was approximately $64 million and $58 million at June 30, 2018 and December 31, 2017, respectively. Our May 2018 acquisition of Stahlgruber contributed $3 million to our reserve for uncollectible accounts. See Note 2, "Business Combinations" for further information on our acquisitions.
Summary of Significant Accounting Policies
Financial Statement Information
Allowance for Doubtful Accounts
We have a reserve for uncollectible accounts, which was approximately $64 million and $58 million at June 30, 2018 and December 31, 2017, respectively. Our May 2018 acquisition of Stahlgruber contributed $3 million to our reserve for uncollectible accounts. See Note 2, "Business Combinations" for further information on our acquisitions.
Inventories
Inventories consist of the following (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Aftermarket and refurbished products
$
2,208,122

 
$
1,877,653

Salvage and remanufactured products
490,325

 
487,108

Manufactured products
19,711

 
16,022

Total inventories
$
2,718,158

 
$
2,380,783


    Aftermarket and refurbished products and salvage and remanufactured products are primarily composed of finished goods. As of June 30, 2018, manufactured products inventory was composed of $13 million of raw materials, $2 million of work in process, and $5 million of finished goods. As of December 31, 2017, manufactured products inventory was composed of $10 million of raw materials, $2 million of work in process, and $4 million of finished goods.
Our May 2018 acquisition of Stahlgruber contributed $352 million to our aftermarket and refurbished products inventory. See Note 2, "Business Combinations" for further information on our acquisitions.
Property, Plant and Equipment
Property, plant and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements that extend the useful life of the related asset are capitalized. As property, plant and equipment are sold or retired, the applicable cost and accumulated depreciation are removed from the accounts and any resulting gain or loss thereon is recognized. Construction in progress consists primarily of building and land improvements at our existing facilities. Depreciation is calculated using the straight-line method over the estimated useful lives or, in the case of leasehold improvements, the term of the related lease and reasonably assured renewal periods, if shorter.
Our estimated useful lives are as follows:
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
Property, plant and equipment consists of the following (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Land and improvements
$
187,210

 
$
137,790

Buildings and improvements
367,550

 
233,078

Machinery and equipment
601,967

 
521,526

Computer equipment and software
142,363

 
133,753

Vehicles and trailers
171,639

 
161,269

Furniture and fixtures
50,772

 
31,794

Leasehold improvements
279,259

 
257,506

 
1,800,760

 
1,476,716

Less—Accumulated depreciation
(661,819
)
 
(606,112
)
Construction in progress
49,523

 
42,485

Total property, plant and equipment, net
$
1,188,464

 
$
913,089

    

The components of opening property, plant and equipment acquired as part of our acquisition of Stahlgruber in May 2018 are as follows (in thousands):
 
 
 
Gross Amount
Land and improvements
$
47,281

Buildings and improvements
125,649

Machinery and equipment
49,384

Computer equipment and software
3,760

Vehicles and trailers
643

Furniture and fixtures
28,535

Leasehold improvements
1,890

 
257,142

Construction in progress
3,496

Total property, plant and equipment
$
260,638



We record depreciation expense associated with our refurbishing, remanufacturing, manufacturing and furnace operations as well as our distribution centers in Cost of goods sold on the Unaudited Condensed Consolidated Statements of Income. All other depreciation expense is reported in Depreciation and amortization. Total depreciation expense for the three and six months ended June 30, 2018 was $39 million and $76 million, respectively, and $32 million and $59 million during the three and six months ended June 30, 2017, respectively.
Intangible Assets
Intangible assets consist primarily of goodwill (the cost of purchased businesses in excess of the fair value of the identifiable net assets acquired) and other specifically identifiable intangible assets, such as trade names, trademarks, customer and supplier relationships, software and other technology related assets, and covenants not to compete.
The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2018 are as follows (in thousands):
 
North America
 
Europe
 
Specialty
 
Total
Balance as of January 1, 2018
$
1,709,354

 
$
1,414,898

 
$
412,259

 
$
3,536,511

Business acquisitions and adjustments to previously recorded goodwill
714

 
934,844

 
(5,667
)
 
929,891

Exchange rate effects
(5,078
)
 
(39,536
)
 
188

 
(44,426
)
Balance as of June 30, 2018
$
1,704,990

 
$
2,310,206

 
$
406,780

 
$
4,421,976


During the six months ended June 30, 2018, we recorded $931 million of goodwill related to our acquisition of Stahlgruber. See Note 2, "Business Combinations" for further information on our acquisitions.
The components of other intangibles, net are as follows (in thousands):
 
June 30, 2018
 
December 31, 2017
Intangible assets subject to amortization
$
890,931

 
$
664,969

Indefinite-lived intangible assets
 
 
 
Trademarks
81,300

 
78,800

Other indefinite-lived intangible assets
800

 

Total
$
973,031

 
$
743,769



The components of intangible assets subject to amortization are as follows (in thousands):
 
June 30, 2018
 
December 31, 2017
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Trade names and trademarks
$
494,456

 
$
(82,715
)
 
$
411,741

 
$
327,332

 
$
(75,095
)
 
$
252,237

Customer and supplier relationships
580,314

 
(196,983
)
 
383,331

 
510,113

 
(167,532
)
 
342,581

Software and other technology related assets
160,110

 
(68,163
)
 
91,947

 
124,049

 
(59,081
)
 
64,968

Covenants not to compete
13,550

 
(9,638
)
 
3,912

 
14,981

 
(9,798
)
 
5,183

Total
$
1,248,430

 
$
(357,499
)
 
$
890,931

 
$
976,475

 
$
(311,506
)
 
$
664,969



The components of intangible assets acquired as part of our acquisition of Stahlgruber in May 2018 are as follows (in thousands):
 
Gross Amount
Trade names and trademarks
$
173,382

Customer and supplier relationships
78,239

Software and other technology related assets
28,778

 
$
280,399

The weighted-average amortization periods for our intangible assets acquired during the six months ended June 30, 2018 and the year ended December 31, 2017 are as follows (in years):
 
Six Months Ended
 
Year Ended
 
June 30, 2018
 
December 31, 2017
 
Stahlgruber
 
All Acquisitions
Trade names and trademarks
19.9
 
11.2
Customer and supplier relationships
3.0
 
18.6
Software and other technology related assets
7.4
 
11.1
Covenants not to compete
-
 
4.4
Total intangible assets
13.9
 
16.5

Our estimated useful lives for our finite-lived intangible assets are as follows:
 
Method of Amortization
 
Useful Life
Trade names and trademarks
Straight-line
 
4-30 years
Customer and supplier relationships
Accelerated
 
3-20 years
Software and other technology related assets
Straight-line
 
3-15 years
Covenants not to compete
Straight-line
 
2-5 years

Amortization expense for intangibles was $30 million and $54 million during the three and six months ended June 30, 2018, respectively, and $25 million and $48 million during the three and six months ended June 30, 2017, respectively. Estimated amortization expense for each of the five years in the period ending December 31, 2022 is $78 million (for the remaining six months of 2018), $129 million, $98 million, $73 million and $61 million, respectively.
Investments in Unconsolidated Subsidiaries
Our investment in unconsolidated subsidiaries was $203 million and $208 million as of June 30, 2018 and December 31, 2017, respectively. On December 1, 2016, we acquired a 26.5% equity interest in Mekonomen AB ("Mekonomen") for an aggregate purchase price of $181 million. Headquartered in Stockholm, Sweden, Mekonomen is the leading independent car parts and service chain in the Nordic region of Europe, offering a range of products including spare parts and accessories for cars, and workshop services for consumers and businesses. We are accounting for our interest in Mekonomen using the equity method of accounting, as our investment gives us the ability to exercise significant influence, but not control, over the investee. As of June 30, 2018, the book value of our investment in Mekonomen exceeded our share of the book value of Mekonomen's net assets by $122 million; this difference is primarily related to goodwill and the fair value of other intangible assets. We are recording our equity in the net earnings of Mekonomen on a one quarter lag. We recorded equity in earnings of $1 million and $2 million during the three and six months ended June 30, 2018, respectively, and $2 million during each of the three and six months ended June 30, 2017 related to our investment in Mekonomen, including adjustments to convert the results to GAAP and to recognize the impact of our purchase accounting adjustments. In May 2018 and May 2017, we received cash dividends of $8 million (SEK 67 million) and $7 million (SEK 67 million), respectively, related to our investment in Mekonomen. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at June 30, 2018 was $132 million ($168 million as of August 2, 2018) compared to a carrying value of $194 million. We evaluated our investment in Mekonomen for other-than-temporary impairment and concluded the decline in fair value was not other-than-temporary, but a prolonged stock price decrease will cause the decline to be a permanent impairment.
Warranty Reserve
Some of our salvage mechanical products are sold with a standard six month warranty against defects. Additionally, some of our remanufactured engines are sold with a standard three year warranty against defects. We also provide a limited lifetime warranty for certain of our aftermarket products. These assurance-type warranties are not considered a separate performance obligation and thus, no transaction price is allocated to them. We record the warranty costs in Cost of goods sold on our Unaudited Condensed Consolidated Statements of Income. Our warranty reserve is calculated using historical claim information to project future warranty claims activity and is recorded within Other accrued expenses and Other noncurrent liabilities on our Unaudited Condensed Consolidated Balance Sheets based on the expected timing of the related payments.
The changes in the warranty reserve are as follows (in thousands):
Balance as of December 31, 2017
$
23,151

Warranty expense
22,992

Warranty claims
(21,088
)
Balance as of June 30, 2018
$
25,055


Recent Accounting Pronouncements
Adoption of New Revenue Standard
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). This update outlines a new comprehensive revenue recognition model that supersedes the prior revenue recognition guidance and requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has issued several updates to ASU 2014-09, which collectively with ASU 2014-09, represent the FASB Accounting Standards Codification Topic 606 (“ASC 606”). On January 1, 2018, we adopted ASC 606 for all contracts using the modified retrospective method, which means the historical periods are presented under the previous revenue standards with the cumulative net income effect being adjusted through retained earnings.
Most of the changes resulting from our adoption of ASC 606 were changes in presentation within the Unaudited Condensed Consolidated Balance Sheets and the Unaudited Condensed Consolidated Statements of Income. Therefore, while we made adjustments to certain opening balances on our January 1, 2018 balance sheet, we made no adjustments to opening retained earnings. We expect the impact of the adoption of ASC 606 to be immaterial to our net income on an ongoing basis. See Note 5, "Revenue Recognition" for the required disclosures under ASC 606.
With the adoption of ASC 606, we reclassified certain amounts related to variable consideration. Under ASC 606, we are required to present a refund liability and a returns asset within the Unaudited Condensed Consolidated Balance Sheet, whereas in periods prior to adoption, we presented the estimated margin impact of expected returns as a contra-asset within accounts receivable. Additionally, under ASC 606, the changes in the refund liability are reported in revenue, and the changes in the returns assets are reported in Cost of goods sold in the Unaudited Condensed Consolidated Statements of Income. Prior to adoption, the change in the reserve for returns was generally reported as a net amount within revenue. As a result, the income statement presentation was adjusted concurrently with the balance sheet change beginning in 2018.
The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASC 606 was as follows (in thousands):
 
Balance as of December 31, 2017
 
Adjustments Due to ASC 606
 
Balance as of January 1, 2018
Balance Sheet
 
 
 
 
 
Assets
 
 
 
 
 
Accounts receivable
$
1,027,106

 
$
38,511

 
$
1,065,617

Prepaid expenses and other current assets
134,479

 
44,508

 
178,987

Liabilities
 
 
 
 
 
Refund liability

 
83,019

 
83,019


The impact of the adoption of ASC 606 on our Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018 and our Unaudited Condensed Consolidated Statement of Income for the three and six months ended June 30, 2018 was as follows (in thousands):
 
Balance as of June 30, 2018
 
As Reported
 
Amounts Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Balance Sheet
 
 
 
 
 
Assets
 
 
 
 
 
Accounts receivable
$
1,301,514

 
$
1,254,189

 
$
47,325

Prepaid expenses and other current assets
228,732

 
172,363

 
56,369

Liabilities
 
 
 
 
 
Refund liability
103,694

 

 
103,694

 
For the three months ended June 30, 2018
 
As Reported
 
Amounts Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Income Statement
 
 
 
 
 
Revenue
$
3,030,751

 
$
3,030,378

 
$
373

Cost of goods sold
1,868,872

 
1,867,781

 
1,091

Selling, general and administrative expenses
826,044

 
826,762

 
(718
)
 
For the six months ended June 30, 2018
 
As Reported
 
Amounts Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Income Statement
 
 
 
 
 
Revenue
$
5,751,515

 
$
5,759,091

 
$
(7,576
)
Cost of goods sold
3,535,665

 
3,541,955

 
(6,290
)
Selling, general and administrative expenses
1,592,935

 
1,594,221

 
(1,286
)
We have not included a table of the impact of the balance sheet adjustments on the Unaudited Condensed Consolidated Statement of Cash Flows as the adjustment will net to zero within the operating activities section of this statement.
Under ASC 606, we have elected not to adjust consideration for the effect of a significant financing component at contract inception if the period between the transfer of goods to the customer and payment received from the customer is one year or less. Generally, our payment terms are short term in nature, but in some instances we may offer extended terms to customers exceeding one year such that interest would be accrued with respect to those contracts. The interest that would be accrued related to these contracts is immaterial at June 30, 2018.
Under ASC 340, "Other Assets and Deferred Costs," we have elected to recognize incremental costs of obtaining a contract (commissions earned by our sales representatives on product sales) as an expense when incurred, as we believe the amortization period of the asset would be one year or less due to the short-term nature of our contracts.
Other Recently Adopted Accounting Pronouncements
During the first quarter of 2018, we adopted ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which changes how entities will recognize, measure, present and make disclosures about certain financial assets and financial liabilities. The adoption of ASU 2016-01 did not have a significant impact on our financial position, results of operations, cash flows or disclosures.
During the first quarter of 2018, we adopted ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which includes guidance on classification for the following items: debt prepayment or debt extinguishment costs, settlement of zero coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims and corporate-owned or bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and other separately identifiable cash flows where application of the predominance principle is prescribed. No adjustments were required in our Unaudited Condensed Consolidated Statement of Cash Flows upon adoption. Within our Unaudited Condensed Consolidating Statements of Cash Flows in Note 17, "Condensed Consolidating Financial Information," we now present a new line item, Payments of deferred purchase price on receivables securitization, as a result of adopting ASU 2016-15; prior year cash flow information within this footnote has been recast to reflect the impact of adopting this accounting standard. Other than the addition of this new line item, there was no impact to our Unaudited Condensed Consolidating Statements of Cash Flows upon adoption.
During the first quarter of 2018, we adopted ASU No. 2017-01 "Clarifying the Definition of a Business" (“ASU 2017-01”), which requires an evaluation of whether substantially all of the fair value of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transaction does not qualify as a business. The guidance also requires an acquired business to include at least one substantive process and narrows the definition of outputs.  The adoption of ASU 2017-01 did not have a material impact on our unaudited condensed consolidated financial statements.
During the first quarter of 2018, we adopted ASU No. 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the reduction of the U.S. federal statutory income tax rate to 21% from 35% due to the enactment of the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). In addition, under ASU 2018-02, an entity is required to provide certain disclosures regarding stranded tax effects. ASU 2018-02 is effective for fiscal years and interim periods beginning after December 15, 2018; early adoption is permitted. As a result of the adoption of ASU 2018-02, we recorded a $5 million reclassification to increase Accumulated Other Comprehensive (Loss) Income and decrease Retained Earnings.
During the first quarter of 2018, we adopted ASU No. 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" ("ASU 2017-07"), which requires presentation of the current service cost component of net periodic benefit expense with other current compensation expenses for the related employees, and requires presentation of the remaining components of net periodic benefit expense, such as interest, expected return on plan assets, and amortization of actuarial gains and losses, outside of operating income. ASU 2017-07 also specifies that, on a prospective basis, only the service cost component is eligible for capitalization into inventory or other assets. While the income statement classification provisions of ASU 2017-07 are applicable on a retrospective basis, due to the immaterial impact to our Unaudited Condensed Consolidated Statements of Income in prior periods, we did not recast prior period income statement information and adopted the classification provisions on a prospective basis. The change in the capitalization provisions under ASU 2017-07 did not have a material impact on our unaudited condensed consolidated financial statements. See Note 13, "Employee Benefit Plans," for further disclosure on the components of net periodic benefit expense and classification of the components within our Unaudited Condensed Consolidated Statements of Income for the three and six months ended June 30, 2018 and 2017.
Recently Issued Accounting Pronouncements
In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"), to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between current GAAP and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under current GAAP. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The standard requires that entities apply the effects of these changes using a modified retrospective approach, which includes a number of optional practical expedients. While we are still in the process of quantifying the impact that the adoption of ASU 2016-02 will have on our consolidated financial statements and related disclosures, we anticipate the adoption will materially affect our consolidated balance sheet and disclosures, as the majority of our operating leases will be recorded on the balance sheet under ASU 2016-02. While we do not anticipate the adoption of this accounting standard to have a material impact on our consolidated statements of income at this time, this conclusion may change as we finalize our assessment. In order to assist in our timely implementation of the new standard, we have purchased new software to track our leases. We have engaged a third party to assist with the implementation of the new software with an expectation to complete the implementation by the end of 2018. During the second quarter, we completed phase one of the software roll-out for our North America and Specialty operations.
In August 2017, the FASB issued ASU No. 2017-12, "Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"), which amends the hedge accounting recognition and presentation requirements in ASC 815 ("Derivatives and Hedging"). ASU 2017-12 significantly alters the hedge accounting model by making it easier for an entity to achieve and maintain hedge accounting and provides for accounting that better reflects an entity's risk management activities. ASU 2017-12 is effective for fiscal years and interim periods beginning after December 15, 2018; early adoption is permitted. Entities will adopt the provisions of ASU 2017-12 by applying a modified retrospective approach to existing hedging relationships as of the adoption date. At this time, we are still evaluating the impact of this standard on our financial statements.
v3.10.0.1
Revenue Recognition Revenue Reconition (Notes)
6 Months Ended
Jun. 30, 2018
Revenue Recognition [Abstract]  
Revenue From Contract With Customer
Revenue Recognition
The core principle of ASC 606 is to recognize revenue when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. ASC 606 defines a five-step process to achieve this core principle, which includes:
1.
Identifying contracts with customers,
2.
Identifying performance obligations within those contracts,
3.
Determining the transaction price,
4.
Allocating the transaction price to the performance obligations in the contract, which may include an estimate of variable consideration, and
5.
Recognizing revenue when or as each performance obligation is satisfied.
The majority of our revenue is derived from the sale of vehicle parts. Under both the previous revenue standards and ASC 606, we recognize revenue when the products are shipped to, delivered to or picked up by customers and title has transferred.
Sources of Revenue
We report our revenue in two categories: (i) parts and services and (ii) other. The following table sets forth our revenue by category, with our parts and services revenue further disaggregated by reportable segment (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
North America
$
1,165,422

 
$
1,075,656

 
$
2,338,007

 
$
2,155,531

Europe
1,279,996

 
887,872

 
2,317,042

 
1,707,039

Specialty
411,633

 
362,355

 
762,307

 
676,254

Parts and services
2,857,051

 
2,325,883

 
5,417,356

 
4,538,824

Other
173,700

 
132,528

 
334,159

 
262,430

Total revenue
$
3,030,751

 
$
2,458,411

 
$
5,751,515

 
$
4,801,254


Parts and Services
Our parts revenue is generated from the sale of vehicle products including replacement parts, components and systems used in the repair and maintenance of vehicles and specialty products and accessories to improve the performance, functionality and appearance of vehicles. Services revenue includes additional services that are generally billed concurrently with the related product sales, such as the sale of service-type warranties and fees for admission to our self service yards.
In North America, our vehicle replacement products include sheet metal collision parts such as doors, hoods, and fenders; bumper covers; head and tail lamps; automotive glass products such as windshields; mirrors and grilles; wheels; and large mechanical items such as engines and transmissions. In Europe, our products include a wide variety of small mechanical products such as brake pads, discs and sensors; clutches; electrical products such as spark plugs and batteries; steering and suspension products; filters; and oil and automotive fluids. In our Specialty operations, we serve six product segments: truck and off-road; speed and performance; RV; towing; wheels, tires and performance handling; and miscellaneous accessories. 
Our service-type warranties typically have service periods ranging from 6 months to 36 months. Under ASC 606, proceeds from these service-type warranties are deferred at contract inception and amortized on a straight-line basis to revenue over the contract period. The changes in deferred service-type warranty revenue are as follows (in thousands):
Balance as of January 1, 2018
$
19,465

Additional warranty revenue deferred
19,271

Warranty revenue recognized
(16,381
)
Balance as of June 30, 2018
$
22,355


Other Revenue
Revenue from other sources includes scrap sales, bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from our furnace operations. We derive scrap metal from several sources, including vehicles that have been used in both our wholesale and self service recycling operations and from OEMs and other entities that contract with us for secure disposal of "crush only" vehicles. The sale of hulks in our wholesale and self service recycling operations represents one performance obligation, and revenue is recognized based on a price per weight when the customer (processor) collects the scrap. Some adjustments may occur when the customer weighs the scrap at their location, and revenue is adjusted accordingly. We constrain our estimate of consideration to be received to the extent that we believe there will be a significant reversal in revenue.
Revenue by Geographic Area
See Note 16, "Segment and Geographic Information" for information related to our revenue by geographic region.
Variable Consideration
The amount of revenue ultimately received from the customer can vary due to variable consideration which includes returns, discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, or other similar items. The previous revenue guidance required us to estimate the transaction price using a best estimate approach. Under ASC 606 we are required to select the “expected value method” or the “most likely amount” method in order to estimate variable consideration. We utilize both methods in practice depending on the type of variable consideration. In addition, our estimates of variable consideration are constrained to the extent that a significant reversal in revenue is expected. We recorded a refund liability and return asset for expected returns of $104 million and $56 million, respectively, as of June 30, 2018 and a net reserve of $38 million as of December 31, 2017. The refund liability is presented separately on the balance sheet within current liabilities while the return asset is presented within prepaid expenses and other current assets. Other types of variable consideration consist primarily of discounts, volume rebates, and other customer sales incentives which are recorded in Receivables, net on the Unaudited Condensed Consolidated Balance Sheets. We recorded a reserve for our variable consideration of $89 million and $78 million as of June 30, 2018 and December 31, 2017, respectively. While other customer incentive programs exist, we characterize them as material rights in the context of our sales transactions. We consider these programs to be immaterial to our consolidated financial statements.
v3.10.0.1
Restructuring and Acquisition Related Expenses (Notes)
6 Months Ended
Jun. 30, 2018
Restructuring and Related Activities [Abstract]  
Restructuring and Acquisition Related Expenses
Restructuring and Acquisition Related Expenses
Acquisition Related Expenses
Acquisition related expenses, which include external costs such as legal, accounting and advisory fees, totaled $14 million and $16 million for the three and six months ended June 30, 2018, respectively. Our 2018 expenses primarily consisted of external costs related to our acquisition of Stahlgruber totaling $13 million and $15 million for the three and six months ended June 30, 2018, respectively. The remaining acquisition related costs related to (i) completed acquisitions, (ii) pending acquisitions as of June 30, 2018, and (iii) potential acquisitions that were terminated.     
Acquisition related expenses for the three and six months ended June 30, 2017 totaled $2 million and $5 million, respectively. Our 2017 expenses related to completed acquisitions and acquisitions that were pending as of June 30, 2017.
Acquisition Integration Plans and Restructuring
During the three and six months ended June 30, 2018, we incurred $2 million and $4 million of restructuring expenses, respectively. Expenses incurred during the three and six months ended June 30, 2018 were primarily related to the integration of our acquisition of Andrew Page. This integration included the closure of duplicate facilities and termination of employees.
During the three and six months ended June 30, 2017, we incurred $0.4 million and $1 million of restructuring expenses, respectively, primarily related to the ongoing integration activities in our Specialty segment. Expenses incurred were primarily related to facility closure and the merger of existing facilities into larger distribution centers.
We expect to incur additional expenses related to the integration of certain of our acquisitions into our existing operations in 2018. These integration activities are expected to include the closure of duplicate facilities, rationalization of personnel in connection with the consolidation of overlapping facilities with our existing business, and moving expenses. Future expenses to complete these integration plans are expected to be less than $15 million.
v3.10.0.1
Equity Incentive Plans
6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Equity Incentive Plans
Stock-Based Compensation
In order to attract and retain employees, non-employee directors, consultants, and other persons associated with us, we may grant qualified and nonqualified stock options, stock appreciation rights, restricted stock, restricted stock units (“RSUs”), performance shares and performance units under the LKQ Corporation 1998 Equity Incentive Plan (the “Equity Incentive Plan”). We have granted RSUs, stock options, and restricted stock under the Equity Incentive Plan. We expect to issue new shares of common stock to cover past and future equity grants.
RSUs
RSUs vest over periods of up to five years, subject to a continued service condition. Currently outstanding RSUs contain either a time-based vesting condition or a combination of a performance-based vesting condition and a time-based vesting condition, in which case both conditions must be met before any RSUs vest. For most of the RSUs containing a performance-based vesting condition, the Company must report positive diluted earnings per share, subject to certain adjustments, during any fiscal year period within five years following the grant date; we have an immaterial amount of RSUs containing other performance-based vesting conditions. Each RSU converts into one share of LKQ common stock on the applicable vesting date. The grant date fair value of RSUs is based on the market price of LKQ stock on the grant date.
The fair value of RSUs that vested during the six months ended June 30, 2018 was $17 million.
The following table summarizes activity related to our RSUs under the Equity Incentive Plan for the six months ended June 30, 2018:
 
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, 2018
1,624,390

 
$
29.94

 
 
 
 
Granted
593,131

 
$
42.72

 
 
 
 
Vested
(414,625
)
 
$
28.95

 
 
 
 
Forfeited / Canceled
(25,961
)
 
$
32.62

 
 
 
 
Unvested as of June 30, 2018
1,776,935

 
$
34.40

 
 
 
 
Expected to vest after June 30, 2018
1,618,650

 
$
34.34

 
2.8
 
$
51,633


(1) The aggregate intrinsic value of expected to vest RSUs represents the total pretax intrinsic value (the fair value of the Company's stock on the last day of each period multiplied by the number of units) that would have been received by the holders had all RSUs vested. This amount changes based on the market price of the Company’s common stock.
Stock Options
Stock options vest over periods of up to five years, subject to a continued service condition. Stock options expire either six or ten years from the date they are granted. No options were granted during the six months ended June 30, 2018. No options vested during the six months ended June 30, 2018; all of our outstanding options are fully vested.
The following table summarizes activity related to our stock options under the Equity Incentive Plan for the six months ended June 30, 2018:
 
Number
Outstanding
 
Weighted
Average Exercise Price
 
Weighted Average Remaining Contractual Term
(in years)
 
Aggregate Intrinsic Value
   (in thousands) (1)
Balance as of January 1, 2018
1,738,073

 
$
9.20

 
 
 
 
Exercised
(321,267
)
 
$
9.10

 
 
 
$
9,450

Canceled
(509
)
 
$
32.31

 
 
 
 
Balance as of June 30, 2018
1,416,297

 
$
9.22

 
1.2
 
$
32,126

Exercisable as of June 30, 2018
1,416,297

 
$
9.22

 
1.2
 
$
32,126


(1) The aggregate intrinsic value of outstanding and exercisable options represents the total pretax intrinsic value (the difference between the fair value of the Company's stock on the last day of each period and the exercise price, multiplied by the number of options where the fair value exceeds the exercise price) that would have been received by the option holders had all option holders exercised their options as of the last day of the period indicated. This amount changes based on the market price of the Company’s common stock.
Stock-Based Compensation Expense
Pre-tax stock-based compensation expense for RSUs totaled $6 million and $12 million for the three and six months ended June 30, 2018, respectively, and $5 million and $12 million for the three and six months ended June 30, 2017, respectively. As of June 30, 2018, unrecognized compensation expense related to unvested RSUs is $46 million. Stock-based compensation expense related to these awards will be different to the extent that forfeitures are realized.
v3.10.0.1
Earnings Per Share Earnings Per Share (Notes)
6 Months Ended
Jun. 30, 2018
Earnings Per Share [Abstract]  
Earnings Per Share [Text Block]
Earnings Per Share
The following chart sets forth the computation of earnings per share (in thousands, except per share amounts):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Income from continuing operations
$
157,866

 
$
150,914

 
$
310,629

 
$
291,723

Denominator for basic earnings per share—Weighted-average shares outstanding
312,556

 
308,407

 
311,045

 
308,218

Effect of dilutive securities:
 
 
 
 
 
 
 
RSUs
406

 
453

 
512

 
509

Stock options
1,050

 
1,536

 
1,131

 
1,622

Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding
314,012

 
310,396

 
312,688

 
310,349

Basic earnings per share from continuing operations
$
0.51

 
$
0.49

 
$
1.00

 
$
0.95

Diluted earnings per share from continuing operations
$
0.50

 
$
0.49

 
$
0.99

 
$
0.94


The following table sets forth the number of employee stock-based compensation awards outstanding but not included in the computation of diluted earnings per share because their effect would have been antidilutive for the three and six months ended June 30, 2018 and 2017 (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Antidilutive securities:
 
 
 
 
 
 
 
RSUs
575

 

 
288

 
73

Stock options

 
76

 

 
77

v3.10.0.1
Accumulated Other Comprehensive Income (Loss)
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands):
 
 
Three Months Ended
 
 
June 30, 2018
 
 
Foreign
Currency
Translation
 
Unrealized Gain (Loss)
on Cash Flow Hedges
 
Unrealized (Loss) Gain on Pension Plans
 
Other Comprehensive Loss (Income) from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive (Loss) Income
Beginning balance
 
$
(20,589
)
 
$
17,278

 
$
(9,393
)
 
$
(1,914
)
 
$
(14,618
)
Pretax (loss) income
 
(107,167
)
 
30,721

 
(690
)
 

 
(77,136
)
Income tax effect
 
2,003

 
(7,183
)
 
(174
)
 

 
(5,354
)
Reclassification of unrealized (gain) loss
 

 
(27,580
)
 
76

 

 
(27,504
)
Reclassification of deferred income taxes
 

 
6,448

 
(19
)
 

 
6,429

Other comprehensive income from unconsolidated subsidiaries
 

 

 

 
2,122

 
2,122

Adoption of ASU 2018-02
 

 

 

 

 

Ending balance
 
$
(125,753
)
 
$
19,684

 
$
(10,200
)
 
$
208

 
$
(116,061
)


 
 
Three Months Ended
 
 
June 30, 2017
 
 
Foreign
Currency
Translation
 
Unrealized Gain
(Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain
on Pension Plans
 
Other Comprehensive Loss from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive
(Loss) Income
Beginning balance
 
$
(250,950
)
 
$
11,254

 
$
(5,778
)
 
$
(162
)
 
$
(245,636
)
Pretax income (loss)
 
93,597

 
(30,179
)
 
(724
)
 

 
62,694

Income tax effect
 

 
11,136

 
275

 

 
11,411

Reclassification of unrealized loss (gain)
 

 
28,702

 
(550
)
 

 
28,152

Reclassification of deferred income taxes
 

 
(10,589
)
 
137

 

 
(10,452
)
Other comprehensive loss from unconsolidated subsidiaries
 

 

 

 
(439
)
 
(439
)
Ending balance
 
$
(157,353
)
 
$
10,324

 
$
(6,640
)
 
$
(601
)
 
$
(154,270
)


 
 
Six Months Ended
 
 
June 30, 2018
 
 
Foreign
Currency
Translation
 
Unrealized Gain (Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain on Pension Plans
 
Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive (Loss) Income
Beginning balance
 
$
(71,933
)
 
$
11,538

 
$
(8,772
)
 
$
(1,309
)
 
$
(70,476
)
Pretax (loss) income
 
(58,732
)
 
26,220

 
(1,319
)
 

 
(33,831
)
Income tax effect
 
2,053

 
(6,130
)
 
(166
)
 

 
(4,243
)
Reclassification of unrealized (gain) loss
 

 
(18,833
)
 
76

 

 
(18,757
)
Reclassification of deferred income taxes
 

 
4,403

 
(19
)
 

 
4,384

Other comprehensive income from unconsolidated subsidiaries
 

 

 

 
1,517

 
1,517

Adoption of ASU 2018-02
 
2,859

 
2,486

 

 

 
5,345

Ending balance
 
$
(125,753
)
 
$
19,684

 
$
(10,200
)
 
$
208

 
$
(116,061
)

 
 
Six Months Ended
 
 
June 30, 2017
 
 
Foreign
Currency
Translation
 
Unrealized Gain
(Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain
on Pension Plans
 
Other Comprehensive Loss from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive
(Loss) Income
Beginning balance
 
$
(272,529
)
 
$
8,091

 
$
(2,737
)
 
$

 
$
(267,175
)
Pretax income (loss)
 
113,665

 
(29,347
)
 
112

 

 
84,430

Income tax effect
 

 
10,780

 
(43
)
 

 
10,737

Reclassification of unrealized loss (gain)
 

 
32,959

 
(721
)
 

 
32,238

Reclassification of deferred income taxes
 

 
(12,159
)
 
185

 

 
(11,974
)
Disposal of business, net
 
1,511

 

 
(3,436
)
 

 
(1,925
)
Other comprehensive loss from unconsolidated subsidiaries
 

 

 

 
(601
)
 
(601
)
Ending balance
 
$
(157,353
)
 
$
10,324

 
$
(6,640
)
 
$
(601
)
 
$
(154,270
)
Accumulated Other Comprehensive Income (Loss)
The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands):
 
 
Three Months Ended
 
 
June 30, 2018
 
 
Foreign
Currency
Translation
 
Unrealized Gain (Loss)
on Cash Flow Hedges
 
Unrealized (Loss) Gain on Pension Plans
 
Other Comprehensive Loss (Income) from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive (Loss) Income
Beginning balance
 
$
(20,589
)
 
$
17,278

 
$
(9,393
)
 
$
(1,914
)
 
$
(14,618
)
Pretax (loss) income
 
(107,167
)
 
30,721

 
(690
)
 

 
(77,136
)
Income tax effect
 
2,003

 
(7,183
)
 
(174
)
 

 
(5,354
)
Reclassification of unrealized (gain) loss
 

 
(27,580
)
 
76

 

 
(27,504
)
Reclassification of deferred income taxes
 

 
6,448

 
(19
)
 

 
6,429

Other comprehensive income from unconsolidated subsidiaries
 

 

 

 
2,122

 
2,122

Adoption of ASU 2018-02
 

 

 

 

 

Ending balance
 
$
(125,753
)
 
$
19,684

 
$
(10,200
)
 
$
208

 
$
(116,061
)


 
 
Three Months Ended
 
 
June 30, 2017
 
 
Foreign
Currency
Translation
 
Unrealized Gain
(Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain
on Pension Plans
 
Other Comprehensive Loss from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive
(Loss) Income
Beginning balance
 
$
(250,950
)
 
$
11,254

 
$
(5,778
)
 
$
(162
)
 
$
(245,636
)
Pretax income (loss)
 
93,597

 
(30,179
)
 
(724
)
 

 
62,694

Income tax effect
 

 
11,136

 
275

 

 
11,411

Reclassification of unrealized loss (gain)
 

 
28,702

 
(550
)
 

 
28,152

Reclassification of deferred income taxes
 

 
(10,589
)
 
137

 

 
(10,452
)
Other comprehensive loss from unconsolidated subsidiaries
 

 

 

 
(439
)
 
(439
)
Ending balance
 
$
(157,353
)
 
$
10,324

 
$
(6,640
)
 
$
(601
)
 
$
(154,270
)


 
 
Six Months Ended
 
 
June 30, 2018
 
 
Foreign
Currency
Translation
 
Unrealized Gain (Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain on Pension Plans
 
Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive (Loss) Income
Beginning balance
 
$
(71,933
)
 
$
11,538

 
$
(8,772
)
 
$
(1,309
)
 
$
(70,476
)
Pretax (loss) income
 
(58,732
)
 
26,220

 
(1,319
)
 

 
(33,831
)
Income tax effect
 
2,053

 
(6,130
)
 
(166
)
 

 
(4,243
)
Reclassification of unrealized (gain) loss
 

 
(18,833
)
 
76

 

 
(18,757
)
Reclassification of deferred income taxes
 

 
4,403

 
(19
)
 

 
4,384

Other comprehensive income from unconsolidated subsidiaries
 

 

 

 
1,517

 
1,517

Adoption of ASU 2018-02
 
2,859

 
2,486

 

 

 
5,345

Ending balance
 
$
(125,753
)
 
$
19,684

 
$
(10,200
)
 
$
208

 
$
(116,061
)

 
 
Six Months Ended
 
 
June 30, 2017
 
 
Foreign
Currency
Translation
 
Unrealized Gain
(Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain
on Pension Plans
 
Other Comprehensive Loss from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive
(Loss) Income
Beginning balance
 
$
(272,529
)
 
$
8,091

 
$
(2,737
)
 
$

 
$
(267,175
)
Pretax income (loss)
 
113,665

 
(29,347
)
 
112

 

 
84,430

Income tax effect
 

 
10,780

 
(43
)
 

 
10,737

Reclassification of unrealized loss (gain)
 

 
32,959

 
(721
)
 

 
32,238

Reclassification of deferred income taxes
 

 
(12,159
)
 
185

 

 
(11,974
)
Disposal of business, net
 
1,511

 

 
(3,436
)
 

 
(1,925
)
Other comprehensive loss from unconsolidated subsidiaries
 

 

 

 
(601
)
 
(601
)
Ending balance
 
$
(157,353
)
 
$
10,324

 
$
(6,640
)
 
$
(601
)
 
$
(154,270
)



Net unrealized gains on our interest rate swaps totaling $1 million and $3 million were reclassified to Interest expense, net in our Unaudited Condensed Consolidated Statements of Income during the three and six months ended June 30, 2018, respectively, compared to a loss of $2 million during the six months ended June 30, 2017; the amount reclassified to Interest expense, net during the three months ended June 30, 2017 was immaterial. We also reclassified gains of $3 million and $4 million to Interest expense, net related to the foreign currency forward component of our cross currency swaps during the three and six months ended June 30, 2018, respectively, compared to $2 million and $4 million during the three and six months ended June 30, 2017. Also related to our cross currency swaps, we reclassified gains of $24 million and $12 million to Other income, net in our Unaudited Condensed Consolidated Statements of Income during the three and six months ended June 30, 2018, respectively, compared to losses of $30 million and $36 million during the three and six months ended June 30, 2017; these gains and losses offset the impact of the remeasurement of the underlying contracts. The deferred income taxes related to our cash flow hedges were reclassified from Accumulated other comprehensive income (loss) to provision for income taxes.
As a result of the adoption of ASU 2018-02 in the first quarter of 2018, we recorded a $5 million reclassification to increase Accumulated Other Comprehensive (Loss) Income and decrease Retained Earnings. See Note 4, "Financial Statement Information" for further information regarding the adoption of ASU 2018-02.
v3.10.0.1
Long-Term Obligations
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Long-Term Obligations
Long-Term Obligations
Long-term obligations consist of the following (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Senior secured credit agreement:
 
 
 
Term loans payable
$
695,990

 
$
704,800

Revolving credit facilities
1,120,911

 
1,283,551

U.S. Notes (2023)
600,000

 
600,000

Euro Notes (2024)
584,200

 
600,150

Euro Notes (2026/28)
1,168,400

 

Receivables securitization facility
100,000

 
100,000

Notes payable through October 2025 at weighted average interest rates of 1.5% and 1.4%, respectively
26,998

 
29,146

Other long-term debt at weighted average interest rates of 2.1% and 1.7%, respectively
179,501

 
110,633

Total debt
4,476,000

 
3,428,280

Less: long-term debt issuance costs
(32,832
)
 
(21,476
)
Less: current debt issuance costs
(4,620
)
 
(2,824
)
Total debt, net of debt issuance costs
4,438,548

 
3,403,980

Less: current maturities, net of debt issuance costs
(177,372
)
 
(126,360
)
Long term debt, net of debt issuance costs
$
4,261,176

 
$
3,277,620


Senior Secured Credit Agreement
On December 1, 2017, LKQ Corporation, LKQ Delaware LLP, and certain other subsidiaries (collectively, the "Borrowers") entered into Amendment No. 2 to the Fourth Amended and Restated Credit Agreement ("Credit Agreement"), which amended the Fourth Amended and Restated Credit Agreement dated January 29, 2016 by modifying certain terms to (1) extend the maturity date by approximately two years to January 29, 2023; (2) increase the total availability under the revolving credit facility's multicurrency component from $2.45 billion to $2.75 billion; (3) increase the permitted net leverage ratio thresholds, including a temporary step-up in the allowable net leverage ratio in the case of permitted acquisitions; (4) modify the applicable margins and fees in the pricing grid; (5) increase the ability of LKQ and its subsidiaries to incur additional indebtedness; and (6) make other immaterial or clarifying modifications and amendments. The increase in the revolving credit facility's multicurrency component of $300 million will be used for general corporate purposes.
Amounts under the revolving credit facility are due and payable upon maturity of the Credit Agreement on January 29, 2023. Term loan borrowings, which totaled $696 million as of June 30, 2018, are due and payable in quarterly installments equal to $4 million on the last day of each fiscal quarter ending on or after March 31, 2018 and prior to March 31, 2019 and $9 million on the last day of each fiscal quarter ending on or after March 31, 2019, with the remaining balance due and payable on January 29, 2023.
We are required to prepay the term loan by amounts equal to proceeds from the sale or disposition of certain assets if the proceeds are not reinvested within twelve months. We also have the option to prepay outstanding amounts under the Credit Agreement without penalty.
The Credit Agreement contains customary representations and warranties and customary covenants that provide limitations and conditions on our ability to enter into certain transactions. The Credit Agreement also contains financial and affirmative covenants, including limitations on our net leverage ratio and a minimum interest coverage ratio.
Borrowings under the Credit Agreement bear interest at variable rates, which depend on the currency and duration of the borrowing elected, plus an applicable margin. The applicable margin is subject to change in increments of 0.25% depending on our net leverage ratio. Interest payments are due on the last day of the selected interest period or quarterly in arrears depending on the type of borrowing. Including the effect of the interest rate swap agreements described in Note 11, "Derivative Instruments and Hedging Activities," the weighted average interest rates on borrowings outstanding under the Credit Agreement at June 30, 2018 and December 31, 2017 were 2.5% and 2.2%, respectively. We also pay a commitment fee based on the average daily unused amount of the revolving credit facilities. The commitment fee is subject to change in increments of 0.025% and 0.05% depending on our net leverage ratio. In addition, we pay a participation commission on outstanding letters of credit at an applicable rate based on our net leverage ratio, and a fronting fee of 0.125% to the issuing bank, which are due quarterly in arrears.
Of the total borrowings outstanding under the Credit Agreement, $26 million and $18 million were classified as current maturities at June 30, 2018 and December 31, 2017, respectively. As of June 30, 2018, there were letters of credit outstanding in the aggregate amount of $65 million. The amounts available under the revolving credit facilities are reduced by the amounts outstanding under letters of credit, and thus availability under the revolving credit facilities at June 30, 2018 was $1.6 billion.
Related to the execution of Amendment No. 2 to the Fourth Amended and Restated Credit Agreement in December 2017, we incurred $5 million of fees, the majority of which were capitalized as an offset to Long-Term Obligations and are amortized over the term of the agreement.
U.S. Notes (2023)
In 2013, we issued $600 million aggregate principal amount of 4.75% senior notes due 2023 (the "U.S. Notes (2023)"). The U.S. Notes (2023) are governed by the Indenture dated as of May 9, 2013 (the "U.S. Notes (2023) Indenture") among LKQ Corporation, certain of our subsidiaries (the "Guarantors"), the trustee, paying agent, transfer agent and registrar. The U.S. Notes (2023) are registered under the Securities Act of 1933.
The U.S. Notes (2023) bear interest at a rate of 4.75% per year from the most recent payment date on which interest has been paid or provided for. Interest on the U.S. Notes (2023) is payable in arrears on May 15 and November 15 of each year. The U.S. Notes (2023) are fully and unconditionally guaranteed, jointly and severally, by the Guarantors.
The U.S. Notes (2023) and the related guarantees are, respectively, LKQ Corporation's and each Guarantor's senior unsecured obligations and are subordinated to all of the Guarantors' existing and future secured debt to the extent of the assets securing that secured debt. In addition, the U.S. Notes (2023) are effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the U.S. Notes (2023) to the extent of the assets of those subsidiaries.
Euro Notes (2024)
On April 14, 2016, LKQ Italia Bondco S.p.A. (“LKQ Italia”), an indirect, wholly-owned subsidiary of LKQ Corporation, completed an offering of €500 million aggregate principal amount of senior notes due April 1, 2024 (the “Euro Notes (2024)”) in a private placement conducted pursuant to Regulation S and Rule 144A under the Securities Act of 1933. The proceeds from the offering were used to repay a portion of the revolver borrowings under the Credit Agreement and to pay related fees and expenses. The Euro Notes (2024) are governed by the Indenture dated as of April 14, 2016 (the “Euro Notes (2024) Indenture”) among LKQ Italia, LKQ Corporation and certain of our subsidiaries (the “Euro Notes (2024) Subsidiaries”), the trustee, and the paying agent, transfer agent, and registrar.
The Euro Notes (2024) bear interest at a rate of 3.875% per year from the date of original issuance or from the most recent payment date on which interest has been paid or provided for. Interest on the Euro Notes (2024) is payable in arrears on April 1 and October 1 of each year. The Euro Notes (2024) are fully and unconditionally guaranteed by LKQ Corporation and the Euro Notes (2024) Subsidiaries (the "Euro Notes (2024) Guarantors").
The Euro Notes (2024) and the related guarantees are, respectively, LKQ Italia’s and each Euro Notes (2024) Guarantor’s senior unsecured obligations and are subordinated to all of LKQ Italia's and the Euro Notes (2024) Guarantors’ existing and future secured debt to the extent of the assets securing that secured debt. In addition, the Euro Notes (2024) are effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the Euro Notes (2024) to the extent of the assets of those subsidiaries. The Euro Notes (2024) have been listed on the ExtraMOT, Professional Segment of the Borsa Italia S.p.A. securities exchange and the Global Exchange Market of Euronext Dublin.
Euro Notes (2026/28)
On April 9, 2018, LKQ European Holdings B.V. ("LKQ Euro Holdings"), a wholly-owned subsidiary of LKQ Corporation, completed an offering of €1.0 billion aggregate principal amount of senior notes. The offering consisted of €750 million senior notes due 2026 (the "2026 notes") and €250 million senior notes due 2028 (the "2028 notes" and, together with the 2026 notes, the "Euro Notes (2026/28)") in a private placement conducted pursuant to Regulation S and Rule 144A under the Securities Act of 1933. The proceeds from the offering, together with borrowings under our senior secured credit facility, were or will be used to (i) finance a portion of the consideration paid for the Stahlgruber acquisition, (ii) for general corporate purposes and (iii) to pay related fees and expenses, including the refinancing of net financial debt. The Euro Notes (2026/28) are governed by the Indenture dated as of April 9, 2018 (the “Euro Notes (2026/28) Indenture”) among LKQ Euro Holdings, LKQ Corporation and certain of our subsidiaries (the “Euro Notes (2026/28) Subsidiaries”), the trustee, paying agent, transfer agent, and registrar.
The 2026 notes and 2028 notes bear interest at a rate of 3.625% and 4.125%, respectively, per year from the date of original issuance or from the most recent payment date on which interest has been paid or provided for. Interest on the Euro Notes (2026/28) is payable in arrears on April 1 and October 1 of each year, beginning on October 1, 2018. The Euro Notes (2026/28) are fully and unconditionally guaranteed by LKQ Corporation and the Euro Notes (2026/28) Subsidiaries (the "Euro Notes (2026/28) Guarantors").
The Euro Notes (2026/28) and the related guarantees are, respectively, LKQ Euro Holdings' and each Euro Notes (2026/28) Guarantor’s senior unsecured obligations and will be subordinated to all of LKQ Euro Holdings' and the Euro Notes (2026/28) Guarantors’ existing and future secured debt to the extent of the assets securing that secured debt. In addition, the Euro Notes (2026/28) are effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the Euro Notes (2026/28) to the extent of the assets of those subsidiaries. The Euro Notes (2026/28) have been listed on the Global Exchange Market of Euronext Dublin.
Related to the execution of the Euro Notes (2026/28) in April 2018, we incurred $15 million of fees, which were capitalized as an offset to Long-Term Obligations and are amortized over the term of the Euro Notes (2026/28).
Receivables Securitization Facility
On November 29, 2016, we amended the terms of our receivables securitization facility with The Bank of Tokyo-Mitsubishi UFJ, LTD. ("BTMU") to: (i) extend the term of the facility to November 8, 2019; (ii) increase the maximum amount available to $100 million; and (iii) make other clarifying and updating changes. Under the facility, LKQ sells an ownership interest in certain receivables, related collections and security interests to BTMU for the benefit of conduit investors and/or financial institutions for cash proceeds. Upon payment of the receivables by customers, rather than remitting to BTMU the amounts collected, LKQ retains such collections as proceeds for the sale of new receivables generated by certain of the ongoing operations of the Company.
The sale of the ownership interest in the receivables is accounted for as a secured borrowing in our Consolidated Balance Sheets, under which the receivables included in the program collateralize the amounts invested by BTMU, the conduit investors and/or financial institutions (the "Purchasers"). The receivables are held by LKQ Receivables Finance Company, LLC ("LRFC"), a wholly owned bankruptcy-remote special purpose subsidiary of LKQ, and therefore, the receivables are available first to satisfy the creditors of LRFC, including the Purchasers. Net receivables totaling $138 million and $144 million were collateral for the investment under the receivables facility as of June 30, 2018 and December 31, 2017, respectively.
Under the receivables facility, we pay variable interest rates plus a margin on the outstanding amounts invested by the Purchasers. The variable rates are based on (i) commercial paper rates, (ii) the London InterBank Offered Rate ("LIBOR"), or (iii) base rates, and are payable monthly in arrears. The commercial paper rate is the applicable variable rate unless conduit investors are not available to invest in the receivables at commercial paper rates. In such case, financial institutions will invest at the LIBOR rate or at base rates. We also pay a commitment fee on the excess of the investment maximum over the average daily outstanding investment, payable monthly in arrears. As of June 30, 2018, the interest rate under the receivables facility was based on commercial paper rates and was 3.1%. The outstanding balances of $100 million as of both June 30, 2018 and December 31, 2017 were classified as long-term on the Unaudited Condensed Consolidated Balance Sheets because we have the ability and intent to refinance these borrowings on a long-term basis.
v3.10.0.1
Derivative Instruments and Hedging Activities
6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Cash Flow Hedges
The following table summarizes the notional amounts and fair values of our designated cash flow hedges as of June 30, 2018 and December 31, 2017 (in thousands):
 
 
Notional Amount
 
Fair Value at June 30, 2018 (USD)
 
Fair Value at December 31, 2017 (USD)
 
 
June 30, 2018
 
December 31, 2017
 
Other Assets
 
Other Noncurrent Liabilities
 
Other Assets
 
Other Noncurrent Liabilities
Interest rate swap agreements
 
 
 
 
 
 
 
 
USD denominated
 
$
590,000

 
$
590,000

 
$
25,415

 
$

 
$
19,102

 
$

Cross currency swap agreements
 
 
 
 
 
 
 
 
USD/euro
 
$
398,614

 
$
406,546

 
10,382

 
52,208

 
5,504

 
61,492

Total cash flow hedges
 
$
35,797

 
$
52,208

 
$
24,606

 
$
61,492


Derivative Instruments and Hedging Activities
Derivative Instruments and Hedging Activities
We are exposed to market risks, including the effect of changes in interest rates, foreign currency exchange rates and commodity prices. Under our current policies, we use derivatives to manage our exposure to variable interest rates on our senior secured debt and changing foreign exchange rates for certain foreign currency denominated transactions. We do not hold or issue derivatives for trading purposes.
Cash Flow Hedges
We hold interest rate swap agreements to hedge a portion of the variable interest rate risk on our variable rate borrowings under our Credit Agreement, with the objective of minimizing the impact of interest rate fluctuations and stabilizing cash flows. Under the terms of the interest rate swap agreements, we pay the fixed interest rate and receive payment at a variable rate of interest based on LIBOR for the respective currency of each interest rate swap agreement’s notional amount. The effective portion of changes in the fair value of the interest rate swap agreements is recorded in Accumulated Other Comprehensive Income (Loss) and is reclassified to interest expense when the underlying interest payment has an impact on earnings. The ineffective portion of changes in the fair value of the interest rate swap agreements is reported in interest expense. Our interest rate swap contracts have maturity dates ranging from January to June 2021. As of June 30, 2018, we held interest rate swap contracts representing $590 million of U.S. dollar-denominated debt.
From time to time, we may hold foreign currency forward contracts related to certain foreign currency denominated intercompany transactions, with the objective of minimizing the impact of fluctuating exchange rates on these future cash flows. Under the terms of the foreign currency forward contracts, we will sell the foreign currency in exchange for U.S. dollars at a fixed rate on the maturity dates of the contracts. The effective portion of the changes in fair value of the foreign currency forward contracts is recorded in Accumulated Other Comprehensive Income (Loss) and reclassified to other income, net when the underlying transaction has an impact on earnings.
In 2016, we entered into three cross currency swap agreements for a total notional amount of $422 million (€400 million). The notional amount steps down by €15 million annually through 2020 with the remainder maturing in January 2021. These cross currency swaps contain an interest rate swap component and a foreign currency forward contract component that, combined with related intercompany financing arrangements, effectively convert variable rate U.S. dollar-denominated borrowings into fixed rate euro-denominated borrowings. The swaps are intended to minimize the impact of fluctuating exchange rates and interest rates on the cash flows resulting from the related intercompany financing arrangements. The effective portion of the changes in the fair value of the derivative instruments is recorded in Accumulated Other Comprehensive Income (Loss) and is reclassified to interest expense, net when the underlying transactions have an impact on earnings.
The activity related to our cash flow hedges is presented in operating activities in our Unaudited Condensed Consolidated Statements of Cash Flows.
The following table summarizes the notional amounts and fair values of our designated cash flow hedges as of June 30, 2018 and December 31, 2017 (in thousands):
 
 
Notional Amount
 
Fair Value at June 30, 2018 (USD)
 
Fair Value at December 31, 2017 (USD)
 
 
June 30, 2018
 
December 31, 2017
 
Other Assets
 
Other Noncurrent Liabilities
 
Other Assets
 
Other Noncurrent Liabilities
Interest rate swap agreements
 
 
 
 
 
 
 
 
USD denominated
 
$
590,000

 
$
590,000

 
$
25,415

 
$

 
$
19,102

 
$

Cross currency swap agreements
 
 
 
 
 
 
 
 
USD/euro
 
$
398,614

 
$
406,546

 
10,382

 
52,208

 
5,504

 
61,492

Total cash flow hedges
 
$
35,797

 
$
52,208

 
$
24,606

 
$
61,492


While certain derivative instruments executed with the same counterparty are subject to master netting arrangements, we present our cash flow hedge derivative instruments on a gross basis in our Unaudited Condensed Consolidated Balance Sheets. The impact of netting the fair values of these contracts would result in a decrease to Other Assets and Other Noncurrent Liabilities on our Unaudited Condensed Consolidated Balance Sheets of $18 million and $12 million at June 30, 2018 and December 31, 2017, respectively.
The activity related to our cash flow hedges is included in Note 9, "Accumulated Other Comprehensive Income (Loss)." Ineffectiveness related to our cash flow hedges was immaterial to our results of operations during each of the three and six months ended June 30, 2018 and 2017. We do not expect future ineffectiveness related to our cash flow hedges to have a material effect on our results of operations.
As of June 30, 2018, we estimate that $3 million of derivative gains (net of tax) included in Accumulated Other Comprehensive Income (Loss) will be reclassified into our Unaudited Condensed Consolidated Statements of Income within the next 12 months.
Other Derivative Instruments
We hold other short-term derivative instruments, including foreign currency forward contracts, to manage our exposure to variability related to inventory purchases and intercompany financing transactions denominated in a non-functional currency. We have elected not to apply hedge accounting for these transactions, and therefore the contracts are adjusted to fair value through our results of operations as of each balance sheet date, which could result in volatility in our earnings. The notional amount and fair value of these contracts at June 30, 2018 and December 31, 2017, along with the effect on our results of operations during each of the three and six months ended June 30, 2018 and 2017, were immaterial.
v3.10.0.1
Fair Value Measurements
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Fair Value Measurements
Fair Value Measurements
Financial Assets and Liabilities Measured at Fair Value
We use the market and income approaches to estimate the fair value of our financial assets and liabilities, and during the three months ended June 30, 2018, there were no significant changes in valuation techniques or inputs related to the financial assets or liabilities that we have historically recorded at fair value. The tiers in the fair value hierarchy include: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as significant unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.
The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs we utilized to determine such fair value as of June 30, 2018 and December 31, 2017 (in thousands):
 
Balance as of June 30, 2018
 
Fair Value Measurements as of June 30, 2018
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Cash surrender value of life insurance
$
50,233

 
$

 
$
50,233

 
$

Interest rate swaps
25,415

 

 
25,415

 

Cross currency swap agreements
10,382

 

 
10,382

 

Total Assets
$
86,030

 
$

 
$
86,030

 
$

Liabilities:
 
 
 
 
 
 
 
Contingent consideration liabilities
$
2,725

 
$

 
$

 
$
2,725

Deferred compensation liabilities
51,564

 

 
51,564

 

Cross currency swap agreements
52,208

 

 
52,208

 

Total Liabilities
$
106,497

 
$

 
$
103,772

 
$
2,725

 
Balance as of December 31, 2017
 
Fair Value Measurements as of December 31, 2017
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Cash surrender value of life insurance
$
45,984

 
$

 
$
45,984

 
$

Interest rate swaps
19,102

 

 
19,102

 

Cross currency swap agreements
5,504

 

 
5,504

 

Total Assets
$
70,590

 
$

 
$
70,590

 
$

Liabilities:
 
 
 
 
 
 
 
Contingent consideration liabilities
$
2,636

 
$

 
$

 
$
2,636

Deferred compensation liabilities
47,199

 

 
47,199

 

Cross currency swap agreements
61,492

 

 
61,492

 

Total Liabilities
$
111,327

 
$

 
$
108,691

 
$
2,636


The cash surrender value of life insurance is included in Other assets on our Unaudited Condensed Consolidated Balance Sheets. The current portion of deferred compensation is included in Accrued payroll-related liabilities and the current portion of contingent consideration liabilities is included in Other current liabilities on our Unaudited Condensed Consolidated Balance Sheets; the noncurrent portion of these amounts is included in Other noncurrent liabilities on our Unaudited Condensed Consolidated Balance Sheets based on the expected timing of the related payments. The balance sheet classification of the interest rate swaps and cross currency swap agreements is presented in Note 11, "Derivative Instruments and Hedging Activities."
Our Level 2 assets and liabilities are valued using inputs from third parties and market observable data. We obtain valuation data for the cash surrender value of life insurance and deferred compensation liabilities from third party sources, which determine the net asset values for our accounts using quoted market prices, investment allocations and reportable trades. We value our derivative instruments using a third party valuation model that performs a discounted cash flow analysis based on the terms of the contracts and market observable inputs such as current and forward interest rates and current and forward foreign exchange rates.
Our contingent consideration liabilities are related to our business acquisitions. Under the terms of the contingent consideration agreements, payments may be made at specified future dates depending on the performance of the acquired business subsequent to the acquisition. The liabilities for these payments are classified as Level 3 liabilities because the related fair value measurement, which is determined using an income approach, includes significant inputs not observable in the market.
Financial Assets and Liabilities Not Measured at Fair Value
Our debt is reflected on the Unaudited Condensed Consolidated Balance Sheets at cost. Based on market conditions as of June 30, 2018 and December 31, 2017, the fair value of our credit agreement borrowings reasonably approximated the carrying values of $1.8 billion and $2.0 billion, respectively. In addition, based on market conditions, the fair values of the outstanding borrowings under the receivables facility reasonably approximated the carrying values of $100 million at both June 30, 2018 and December 31, 2017. As of June 30, 2018 and December 31, 2017, the fair values of the U.S. Notes (2023) were approximately $598 million and $615 million, respectively, compared to a carrying value of $600 million. As of June 30, 2018 and December 31, 2017, the fair values of the Euro Notes (2024) were approximately $609 million and $658 million compared to carrying values of $584 million and $600 million, respectively. As of June 30, 2018, the fair value of the Euro Notes (2026/28) approximated the carrying value of $1.2 billion.
The fair value measurements of the borrowings under our credit agreement and receivables facility are classified as Level 2 within the fair value hierarchy since they are determined based upon significant inputs observable in the market, including interest rates on recent financing transactions with similar terms and maturities. We estimated the fair value by calculating the upfront cash payment a market participant would require at June 30, 2018 to assume these obligations. The fair value of our U.S. Notes (2023) is classified as Level 1 within the fair value hierarchy since it is determined based upon observable market inputs including quoted market prices in an active market. The fair values of our Euro Notes (2024) and Euro Notes (2026/28) are determined based upon observable market inputs including quoted market prices in markets that are not active, and therefore are classified as Level 2 within the fair value hierarchy.
v3.10.0.1
Employee Benefit Plans (Notes)
6 Months Ended
Jun. 30, 2018
Retirement Benefits [Abstract]  
Pension and Other Postretirement Benefits Disclosure [Text Block]
Employee Benefit Plans
We have funded and unfunded defined benefit plans covering certain employee groups in the U.S. and various European countries. The defined benefit plans are generally frozen to new participants and, in some cases, existing participants no longer accrue benefits. As of June 30, 2018 and December 31, 2017, the aggregate funded status of the defined benefit plans was a liability of $121 million and $46 million, respectively, and is reported in Other noncurrent liabilities on our Unaudited Condensed Consolidated Balance Sheets. Of the liability at June 30, 2018, $75 million was related to our acquisition of Stahlgruber on May 30, 2018.
    
Net periodic benefit expense for our defined benefit plans included the following components for the three and six months ended June 30, 2018 and 2017 (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Service cost
$
516

 
$
889

 
$
984

 
$
1,776

Interest cost
776

 
833

 
1,446

 
1,341

Expected return on plan assets
(783
)
 
(249
)
 
(1,500
)
 
(552
)
Amortization of prior service credit

 
(66
)
 

 
(130
)
Amortization of actuarial (gain) loss
76

 
(484
)
 
76

 
(591
)
Net periodic benefit expense
$
585

 
$
923

 
$
1,006

 
$
1,844


For the three and six months ended June 30, 2018, the service cost component of net periodic benefit expense was classified in Selling, general and administrative expenses, while the other components of net periodic benefit expense were classified in Other income, net in our Unaudited Condensed Consolidated Statements of Income. For the three and six months ended June 30, 2017, all components of net periodic benefit expense were included in Selling, general, and administrative expenses in our Unaudited Condensed Consolidated Statements of Income.
During the six months ended, June 30, 2018, we contributed $2 million to our pension plans. We estimate that contributions to our pension plans during the last six months of 2018 will be $3 million.
v3.10.0.1
Commitments and Contingencies
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies
Commitments and Contingencies
Operating Leases
We are obligated under noncancelable operating leases for corporate office space, warehouse and distribution facilities, trucks and certain equipment.
The future minimum lease commitments under these leases at June 30, 2018 are as follows (in thousands):
Six months ending December 31, 2018
$
142,000

Years ending December 31:
 
2019
248,418

2020
206,988

2021
161,302

2022
128,298

2023
107,904

Thereafter
611,801

Future Minimum Lease Payments
$
1,606,711


Litigation and Related Contingencies
We have certain contingencies resulting from litigation, claims and other commitments and are subject to a variety of environmental and pollution control laws and regulations incident to the ordinary course of business. We currently expect that the resolution of such contingencies will not materially affect our financial position, results of operations or cash flows.
v3.10.0.1
Income Taxes (Notes)
6 Months Ended
Jun. 30, 2018
Income Tax Disclosure [Abstract]  
Income Taxes
Income Taxes
At the end of each interim period, we estimate our annual effective tax rate and apply that rate to our interim earnings. We also record the tax impact of certain unusual or infrequently occurring items, including changes in judgment about valuation allowances and the effects of changes in tax laws or rates, in the interim period in which they occur.
The computation of the annual estimated effective tax rate at each interim period requires certain estimates and significant judgment including, but not limited to, the expected operating income for the year, projections of the proportion of income earned and taxed in state and foreign jurisdictions, permanent and temporary differences between book and taxable income, and the likelihood of recovering deferred tax assets generated in the current year. The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the tax environment changes.    
Our effective income tax rate for the six months ended June 30, 2018 was 26.3%, compared to 33.8% for the comparable prior year period. The decrease was primarily attributable to the reduction of the U.S. federal statutory income tax rate from 35% to 21% as a result of the enactment of the Tax Act in December 2017. Partially offsetting this decrease was a 1.0% increase in the effective income tax rate as a result of the Stahlgruber acquisition, including non-deductible interest and acquisition related expenses, as well as the higher effective tax rate in Germany. The effective tax rate also reflects the impact of favorable discrete items of approximately $3 million and $6 million for the six months ended June 30, 2018 and 2017, respectively, for excess tax benefits from stock-based payments. The year over year change in these amounts increased the effective tax rate by 0.5% compared to the prior year.
Our acquisition of Stahlgruber in May 2018 contributed $98 million of deferred tax liabilities relating to intangible assets; property, plant and equipment; and reserves, including pension and other post-retirement benefit obligations.
The Tax Act introduced broad and complex changes to the U.S. tax code, including the aforementioned reduction in the U.S. corporate tax rate, a one-time transition tax on the historical unremitted earnings of foreign subsidiaries, and a new minimum tax on foreign earnings (Global Intangible Low-Taxed Income, “GILTI”). On December 22, 2017, the SEC staff issued Staff Accounting Bulletin 118 ("SAB 118"), which provides guidance on accounting for the tax effects of the Tax Act. SAB 118 provides a measurement period that should not extend beyond one year from the Tax Act enactment date for companies to complete the related accounting for provisional amounts under ASC 740, "Accounting for Income Taxes."
As a result of the Tax Act, in 2017, we recognized a provisional tax liability of $51 million related to the one-time transition tax on historical foreign earnings, payable over a period of eight years. We also recorded a provisional decrease to net U.S. deferred tax liabilities of $73 million. For a description of the impact of the Tax Act for the year ended December 31, 2017, refer to Note 13, "Income Taxes" of our financial statements as of and for the year ended December 31, 2017 included in the 2017 Form 10-K. During the six-month period ended June 30, 2018, there were no changes made to the provisional amounts recognized in 2017. We continue to gather the information necessary to finalize those provisional amounts. Our estimates could be affected as we gain a more thorough understanding of the Tax Act from additional guidance issued by the U.S. tax authorities. Changes to the provisional estimates of the tax effect of the Tax Act will be recorded as a discrete item in the interim period the amounts are considered complete.
The Company has included the estimated 2018 impact of the GILTI Tax as a period cost and included it as part of the estimated annual effective tax rate. The 2018 estimated annual effective tax rate also includes the impact of all other U.S. tax reform provisions that were effective on January 1, 2018. These estimates are subject to change as additional guidance on the tax reform provisions is issued.
v3.10.0.1
Segment and Geographic Information
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Segment and Geographic Information
Segment and Geographic Information
We have four operating segments: Wholesale – North America, Europe, Specialty and Self Service. Our Wholesale – North America and Self Service operating segments are aggregated into one reportable segment, North America, because they possess similar economic characteristics and have common products and services, customers, and methods of distribution. Our reportable segments are organized based on a combination of geographic areas served and type of product lines offered. The reportable segments are managed separately as each business serves different customers (i.e. geographic in the case of North America and Europe and product type in the case of Specialty) and is affected by different economic conditions. Therefore, we present three reportable segments: North America, Europe and Specialty.
The following tables present our financial performance by reportable segment for the periods indicated (in thousands):
 
North America
 
Europe
 
Specialty
 
Eliminations
 
Consolidated
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
1,334,965

 
$
1,284,153

 
$
411,633

 
$

 
$
3,030,751

Intersegment
201

 

 
1,240

 
(1,441
)
 

Total segment revenue
$
1,335,166

 
$
1,284,153

 
$
412,873

 
$
(1,441
)
 
$
3,030,751

Segment EBITDA
$
175,010

 
$
110,893

 
$
56,068

 
$

 
$
341,971

Depreciation and amortization (1)
21,606

 
39,801

 
7,031

 

 
68,438

Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
1,206,305

 
$
889,751

 
$
362,355

 
$

 
$
2,458,411

Intersegment
209

 

 
1,115

 
(1,324
)
 

Total segment revenue
$
1,206,514

 
$
889,751

 
$
363,470

 
$
(1,324
)
 
$
2,458,411

Segment EBITDA
$
173,732

 
$
83,549

 
$
48,578

 
$

 
$
305,859

Depreciation and amortization (1)
21,823

 
28,732

 
5,447

 

 
56,002


 
North America
 
Europe
 
Specialty
 
Eliminations
 
Consolidated
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
2,664,625

 
$
2,324,583

 
$
762,307

 
$

 
$
5,751,515

Intersegment
384

 

 
2,358

 
(2,742
)
 

Total segment revenue
$
2,665,009

 
$
2,324,583

 
$
764,665

 
$
(2,742
)
 
$
5,751,515

Segment EBITDA
$
352,723

 
$
186,427

 
$
98,037

 
$

 
$
637,187

Depreciation and amortization (1)
42,834

 
72,558

 
14,112

 

 
129,504

Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
2,414,352

 
$
1,710,648

 
$
676,254

 
$

 
$
4,801,254

Intersegment
402

 

 
2,150

 
(2,552
)
 

Total segment revenue
$
2,414,754

 
$
1,710,648

 
$
678,404

 
$
(2,552
)
 
$
4,801,254

Segment EBITDA
$
349,867

 
$
162,243

 
$
84,019

 
$

 
$
596,129

Depreciation and amortization (1)
42,201

 
53,483

 
10,922

 

 
106,606

(1)
Amounts presented include depreciation and amortization expense recorded within cost of goods sold.
The key measure of segment profit or loss reviewed by our chief operating decision maker, who is our Chief Executive Officer, is Segment EBITDA. Segment EBITDA includes revenue and expenses that are controllable by the segment. Corporate general and administrative expenses are allocated to the segments based on usage, with shared expenses apportioned based on the segment's percentage of consolidated revenue. We calculate Segment EBITDA as EBITDA excluding restructuring and acquisition related expenses, change in fair value of contingent consideration liabilities, other gains and losses related to acquisitions or divestitures and equity in earnings of unconsolidated subsidiaries. EBITDA, which is the basis for Segment EBITDA, is calculated as net income excluding noncontrolling interest, discontinued operations, depreciation, amortization, interest and income tax expense.
The table below provides a reconciliation of Net Income to Segment EBITDA (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
2018
 
2017
 
2018
 
2017
Net income
$
157,866

 
$
150,914

 
$
310,629

 
$
287,192

Less: net income attributable to noncontrolling interest
859

 

 
662

 

Net income attributable to LKQ stockholders
157,007

 
150,914

 
309,967

 
287,192

Subtract:
 
 
 
 
 
 
 
Net loss from discontinued operations

 

 

 
(4,531
)
Net income from continuing operations attributable to LKQ stockholders
157,007

 
150,914

 
309,967

 
291,723

Add:
 
 
 
 
 
 
 
Depreciation and amortization
63,163

 
53,645

 
119,621

 
102,301

Depreciation and amortization - cost of goods sold
5,275

 
2,357

 
9,883

 
4,305

Interest expense, net
38,272

 
24,596

 
66,787

 
48,584

Provision for income taxes
60,775

 
75,862

 
110,359

 
148,017

EBITDA
324,492

 
307,374

 
616,617

 
594,930

Subtract:
 
 
 
 
 
 
 
Equity in earnings of unconsolidated subsidiaries
546

 
991

 
1,958

 
1,205

Gains on bargain purchases (1)
328

 
3,077

 
328

 
3,077

Add:
 
 
 
 
 
 
 
Restructuring and acquisition related expenses (2)
15,878

 
2,521

 
19,932

 
5,449

Inventory step-up adjustment - acquisition related

 

 
403

 

Impairment of net assets held for sale
2,438

 

 
2,438

 

Change in fair value of contingent consideration liabilities
37

 
32

 
83

 
32

Segment EBITDA
$
341,971

 
$
305,859

 
$
637,187

 
$
596,129


(1)
Reflects the gains on bargain purchases related to our acquisitions of a wholesale business in Europe and Andrew Page. See Note 2, "Business Combinations," for further information.
(2)
See Note 6, "Restructuring and Acquisition Related Expenses," for further information.
The following table presents capital expenditures by reportable segment (in thousands):
 
Three Months Ended
 
Six Months Ended
June 30,
 
June 30,
2018
 
2017
 
2018
 
2017
Capital Expenditures
 
 
 
 
 
 
 
North America
$
29,206

 
$
22,153

 
$
58,868

 
$
38,913

Europe
16,863

 
22,676

 
45,678

 
43,134

Specialty
7,163

 
2,318

 
10,875

 
5,900

Discontinued operations

 

 

 
3,598

Total capital expenditures
$
53,232

 
$
47,147

 
$
115,421

 
$
91,545


The following table presents assets by reportable segment (in thousands):
 
June 30,
 
December 31,
2018
 
2017
Receivables, net
 
 
 
North America
$
443,651

 
$
379,666

Europe (1)
716,609

 
555,372

Specialty
141,254

 
92,068

Total receivables, net (2)
1,301,514

 
1,027,106

Inventories
 
 
 
North America
1,068,146

 
1,076,393

Europe (1)
1,296,608

 
964,068

Specialty
353,404

 
340,322

Total inventories
2,718,158

 
2,380,783

Property, Plant and Equipment, net
 
 
 
North America
548,981

 
537,286

Europe (1)
553,448

 
293,539

Specialty
86,035

 
82,264

Total property, plant and equipment, net
1,188,464

 
913,089

Equity Method Investments
 
 
 
North America
336

 
336

Europe 
202,317

 
208,068

Total equity method investments
202,653

 
208,404

Other unallocated assets
6,137,842

 
4,837,490

Total assets
$
11,548,631

 
$
9,366,872


(1)
The increase in assets for the Europe segment is primarily attributable to the Stahlgruber acquisition. Refer to Note 2, “Business Combinations,” for further detail on the opening balance sheet amounts.
(2)
Refer to Note 4, "Financial Statement Information," for the increase in total receivables, net compared to December 31, 2017 as a result of the adoption of ASC 606.
We report net receivables; inventories; net property, plant and equipment; and equity method investments by segment as that information is used by the chief operating decision maker in assessing segment performance. These assets provide a measure for the operating capital employed in each segment. Unallocated assets include cash and cash equivalents, prepaid and other current and noncurrent assets, goodwill and other intangibles.
Our largest country of operation is the U.S., followed by the U.K. Our other European operations are located in the Netherlands, Belgium, Italy, Czech Republic, Poland, Slovakia and other European countries. As a result of the Stahlgruber acquisition, we expanded our operations into Germany, Austria, Slovenia, and Croatia. Our operations in other countries include operations in Canada, engine remanufacturing and bumper refurbishing operations in Mexico, an aftermarket parts freight consolidation warehouse in Taiwan, and administrative support functions in India. Our net sales are attributed to geographic area based on the location of the selling operation.
The following table sets forth our revenue by geographic area (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Revenue
 
 
 
 
 
 
 
United States
$
1,621,343

 
$
1,456,065

 
$
3,181,370

 
$
2,873,105

United Kingdom
454,689

 
390,022

 
885,681

 
772,674

Other countries
954,719

 
612,324

 
1,684,464

 
1,155,475

Total revenue
$
3,030,751

 
$
2,458,411

 
$
5,751,515

 
$
4,801,254



The following table sets forth our tangible long-lived assets by geographic area (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Long-lived Assets
 
 
 
United States
$
599,515

 
$
583,236

Germany
212,133

 
41

United Kingdom
175,782

 
178,021

Other countries
201,034

 
151,791

Total long-lived assets
$
1,188,464

 
$
913,089

v3.10.0.1
Condensed Consolidating Financial Information
6 Months Ended
Jun. 30, 2018
Condensed Consolidating Financial Information [Abstract]  
Condensed Consolidating Financial Information
Condensed Consolidating Financial Information
LKQ Corporation (the "Parent") issued, and the Guarantors have fully and unconditionally guaranteed, jointly and severally, the U.S. Notes (2023) due on May 15, 2023. A Guarantor's guarantee will be unconditionally and automatically released and discharged upon the occurrence of any of the following events: (i) a transfer (including as a result of consolidation or merger) by the Guarantor to any person that is not a Guarantor of all or substantially all assets and properties of such Guarantor, provided the Guarantor is also released from its obligations with respect to indebtedness under the Credit Agreement or other indebtedness of ours, which obligation gave rise to the guarantee of the U.S. Notes (2023); (ii) a transfer (including as a result of consolidation or merger) to any person that is not a Guarantor of the equity interests of a Guarantor or issuance by a Guarantor of its equity interests such that the Guarantor ceases to be a subsidiary, as defined in the U.S. Notes (2023) Indenture, provided the Guarantor is also released from its obligations with respect to indebtedness under the Credit Agreement or other indebtedness of ours, which obligation gave rise to the guarantee of the U.S. Notes (2023); (iii) the release of the Guarantor from its obligations with respect to indebtedness under the Credit Agreement or other indebtedness of ours, which obligation gave rise to the guarantee of the U.S. Notes (2023); and (iv) upon legal defeasance, covenant defeasance or satisfaction and discharge of the U.S. Notes (2023) Indenture, as defined in the U.S. Notes (2023) Indenture.
Presented below are the unaudited condensed consolidating financial statements of the Parent, the Guarantors, the non-guarantor subsidiaries (the "Non-Guarantors"), and the elimination entries necessary to present our financial statements on a consolidated basis as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934 resulting from the guarantees of the U.S. Notes (2023). Investments in consolidated subsidiaries have been presented under the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries, intercompany balances, and intercompany revenue and expenses. The unaudited condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the unaudited condensed consolidated financial statements, and may not necessarily be indicative of the financial position, results of operations or cash flows had the Parent, Guarantors and Non-Guarantors operated as independent entities.
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
 
For the Three Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
1,640,396

 
$
1,426,650

 
$
(36,295
)
 
$
3,030,751

Cost of goods sold

 
988,671

 
916,496

 
(36,295
)
 
1,868,872

Gross margin

 
651,725

 
510,154

 

 
1,161,879

Selling, general and administrative expenses
9,683

 
430,693

 
385,668

 

 
826,044

Restructuring and acquisition related expenses

 

 
15,878

 

 
15,878

Depreciation and amortization
21

 
24,526

 
38,616

 

 
63,163

Operating (loss) income
(9,704
)
 
196,506

 
69,992

 

 
256,794

Other expense (income):
 
 
 
 
 
 
 
 
 
Interest expense (income), net
17,805

 
(113
)
 
20,580

 

 
38,272

Intercompany interest (income) expense, net
(15,406
)
 
9,865

 
5,541

 

 

Gains on bargain purchases

 

 
(328
)
 

 
(328
)
Other expense (income), net
117

 
(4,397
)
 
5,035

 

 
755

Total other expense, net
2,516

 
5,355

 
30,828

 

 
38,699

(Loss) income before (benefit) provision for income taxes
(12,220
)
 
191,151

 
39,164

 

 
218,095

(Benefit) provision for income taxes
(3,744
)
 
53,543

 
10,976

 

 
60,775

Equity in earnings of unconsolidated subsidiaries

 

 
546

 

 
546

Equity in earnings of subsidiaries
165,483

 
4,451

 

 
(169,934
)
 

Net income
157,007

 
142,059

 
28,734

 
(169,934
)
 
157,866

Less: net income attributable to noncontrolling interest

 

 
859

 

 
859

Net income attributable to LKQ stockholders
$
157,007


$
142,059


$
27,875


$
(169,934
)

$
157,007


LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
 
For the Three Months Ended June 30, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
1,487,435

 
$
1,001,733

 
$
(30,757
)
 
$
2,458,411

Cost of goods sold

 
889,087

 
635,072

 
(30,757
)
 
1,493,402

Gross margin

 
598,348

 
366,661

 

 
965,009

Selling, general and administrative expenses
9,165

 
385,443

 
269,662

 

 
664,270

Restructuring and acquisition related expenses

 
654

 
1,867

 

 
2,521

Depreciation and amortization
30

 
24,586

 
29,029

 

 
53,645

Operating (loss) income
(9,195
)
 
187,665

 
66,103

 

 
244,573

Other expense (income):
 
 
 
 
 
 
 
 
 
Interest expense, net
16,492

 
26

 
8,078

 

 
24,596

Intercompany interest (income) expense, net
(2,160
)
 
(2,735
)
 
4,895

 

 

Gain on bargain purchase

 

 
(3,077
)
 

 
(3,077
)
Other (income) expense, net
(37
)
 
(4,067
)
 
1,373

 

 
(2,731
)
Total other expense (income), net
14,295

 
(6,776
)
 
11,269

 

 
18,788

(Loss) income from continuing operations before (benefit) provision for income taxes
(23,490
)
 
194,441

 
54,834

 

 
225,785

(Benefit) provision for income taxes
(11,161
)
 
73,363

 
13,660

 

 
75,862

Equity in earnings of unconsolidated subsidiaries
182

 

 
809

 

 
991

Equity in earnings of subsidiaries
163,061

 
5,795

 

 
(168,856
)
 

Net income
$
150,914

 
$
126,873

 
$
41,983

 
$
(168,856
)
 
$
150,914

LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
 
For the Six Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
3,217,991

 
$
2,606,892

 
$
(73,368
)
 
$
5,751,515

Cost of goods sold

 
1,934,586

 
1,674,447

 
(73,368
)
 
3,535,665

Gross margin

 
1,283,405

 
932,445

 

 
2,215,850

Selling, general and administrative expenses
18,813

 
857,490

 
716,632

 

 
1,592,935

Restructuring and acquisition related expenses

 
330

 
19,602

 

 
19,932

Depreciation and amortization
50

 
48,864

 
70,707

 

 
119,621

Operating (loss) income
(18,863
)
 
376,721

 
125,504

 

 
483,362

Other expense (income):
 
 
 
 
 
 
 
 
 
Interest expense, net
35,813

 
99

 
30,875

 

 
66,787

Intercompany interest (income) expense, net
(30,806
)
 
19,545

 
11,261

 

 

Gains on bargain purchases

 

 
(328
)
 

 
(328
)
Other (income) expense, net
(898
)
 
(10,279
)
 
9,050

 

 
(2,127
)
Total other expense, net
4,109

 
9,365

 
50,858

 

 
64,332

(Loss) income before (benefit) provision for income taxes
(22,972
)
 
367,356

 
74,646

 

 
419,030

(Benefit) provision for income taxes
(7,648
)
 
99,420

 
18,587

 

 
110,359

Equity in earnings of unconsolidated subsidiaries

 

 
1,958

 

 
1,958

Equity in earnings of subsidiaries
325,291

 
9,561

 

 
(334,852
)
 

Net income
309,967

 
277,497

 
58,017

 
(334,852
)
 
310,629

Less: net income attributable to noncontrolling interest

 

 
662

 

 
662

Net income attributable to LKQ stockholders
$
309,967

 
$
277,497

 
$
57,355

 
$
(334,852
)
 
$
309,967


LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
 
For the Six Months Ended June 30, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
2,940,951

 
$
1,931,704

 
$
(71,401
)
 
$
4,801,254

Cost of goods sold

 
1,752,462

 
1,225,091

 
(71,401
)
 
2,906,152

     Gross margin

 
1,188,489

 
706,613

 

 
1,895,102

Selling, general and administrative expenses
18,348

 
770,971

 
517,768

 

 
1,307,087

Restructuring and acquisition related expenses

 
2,537

 
2,912

 

 
5,449

Depreciation and amortization
60

 
48,067

 
54,174

 

 
102,301

Operating (loss) income
(18,408
)
 
366,914

 
131,759

 

 
480,265

Other expense (income):
 
 
 
 
 
 
 
 
 
Interest expense, net
32,672

 
224

 
15,688

 

 
48,584

Intercompany interest (income) expense, net
(7,832
)
 
(1,716
)
 
9,548

 

 

Gains on bargain purchases

 

 
(3,077
)
 

 
(3,077
)
Other expense (income), net
254

 
(4,236
)
 
205

 

 
(3,777
)
Total other expense (income), net
25,094

 
(5,728
)
 
22,364

 

 
41,730

(Loss) income from continuing operations before (benefit) provision for income taxes
(43,502
)
 
372,642

 
109,395

 

 
438,535

(Benefit) provision for income taxes
(18,598
)
 
143,401

 
23,214

 

 
148,017

Equity in earnings of unconsolidated subsidiaries

 

 
1,205

 

 
1,205

Equity in earnings of subsidiaries
316,627

 
10,608

 

 
(327,235
)
 

Income from continuing operations
291,723

 
239,849

 
87,386

 
(327,235
)
 
291,723

Net (loss) income from discontinued operations
(4,531
)
 
(4,531
)
 
2,050

 
2,481

 
(4,531
)
Net income
$
287,192

 
$
235,318

 
$
89,436

 
$
(324,754
)
 
$
287,192



LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
 
For the Three Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net income
$
157,007

 
$
142,059

 
$
28,734

 
$
(169,934
)
 
$
157,866

Less: net income attributable to noncontrolling interest

 

 
859

 

 
859

Net income attributable to LKQ stockholders
157,007

 
142,059

 
27,875

 
(169,934
)
 
157,007

 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
Foreign currency translation, net of tax
(105,164
)
 
(2,303
)
 
(106,610
)
 
108,913

 
(105,164
)
Net change in unrealized gains/losses on cash flow hedges, net of tax
2,406

 

 

 

 
2,406

Net change in unrealized gains/losses on pension plans, net of tax
(807
)
 
(864
)
 
57

 
807

 
(807
)
Net change in other comprehensive income from unconsolidated subsidiaries
2,122

 

 
2,122

 
(2,122
)
 
2,122

Other comprehensive loss
(101,443
)
 
(3,167
)
 
(104,431
)
 
107,598

 
(101,443
)
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
55,564

 
138,892

 
(75,697
)
 
(62,336
)
 
56,423

Less: comprehensive income attributable to noncontrolling interest

 

 
859

 

 
859

Comprehensive income (loss) attributable to LKQ stockholders
$
55,564

 
$
138,892

 
$
(76,556
)
 
$
(62,336
)
 
$
55,564





LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
 
For the Three Months Ended June 30, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net income
$
150,914

 
$
126,873

 
$
41,983

 
$
(168,856
)
 
$
150,914

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Foreign currency translation, net of tax
93,597

 
10,097

 
92,903

 
(103,000
)
 
93,597

Net change in unrecognized gains/losses on cash flow hedges, net of tax
(930
)
 

 

 

 
(930
)
Net change in unrealized gains/losses on pension plans, net of tax
(862
)
 
(448
)
 
(414
)
 
862

 
(862
)
Net change in other comprehensive loss from unconsolidated subsidiaries
(439
)
 

 
(439
)
 
439

 
(439
)
Total other comprehensive income
91,366

 
9,649

 
92,050

 
(101,699
)
 
91,366

Total comprehensive income
$
242,280

 
$
136,522

 
$
134,033

 
$
(270,555
)
 
$
242,280


LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
 
For the Six Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net income
$
309,967

 
$
277,497

 
$
58,017

 
$
(334,852
)
 
$
310,629

Less: net income attributable to noncontrolling interest

 

 
662

 

 
662

Net income attributable to LKQ stockholders
309,967

 
277,497

 
57,355

 
(334,852
)
 
309,967

 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
Foreign currency translation, net of tax
(56,679
)
 
(4,486
)
 
(57,555
)
 
62,041

 
(56,679
)
Net change in unrealized gains/losses on cash flow hedges, net of tax
5,660

 

 

 

 
5,660

Net change in unrealized gains/losses on pension plans, net of tax
(1,428
)
 
(1,485
)
 
57

 
1,428

 
(1,428
)
Net change in other comprehensive income from unconsolidated subsidiaries
1,517

 

 
1,517

 
(1,517
)
 
1,517

Other comprehensive loss
(50,930
)
 
(5,971
)
 
(55,981
)
 
61,952

 
(50,930
)
 
 
 
 
 
 
 
 
 
 
Comprehensive income
259,037

 
271,526

 
2,036

 
(272,900
)
 
259,699

Less: comprehensive income attributable to noncontrolling interest

 

 
662

 

 
662

Comprehensive income attributable to LKQ stockholders
$
259,037

 
$
271,526

 
$
1,374

 
$
(272,900
)
 
$
259,037





LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
 
For the Six Months Ended June 30, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net income
$
287,192

 
$
235,318

 
$
89,436

 
$
(324,754
)
 
$
287,192

Other comprehensive income (loss):
 
 
 
 
 
 
 
 

Foreign currency translation, net of tax
115,176

 
13,975

 
114,035

 
(128,010
)
 
115,176

Net change in unrecognized gains/losses on cash flow hedges, net of tax
2,233

 
(133
)
 

 
133

 
2,233

Net change in unrealized gains/losses on pension plans, net of tax
(3,903
)
 
(3,253
)
 
(650
)
 
3,903

 
(3,903
)
Net change in other comprehensive loss from unconsolidated subsidiaries
(601
)
 

 
(601
)
 
601

 
(601
)
Total other comprehensive income
112,905

 
10,589

 
112,784

 
(123,373
)
 
112,905

Total comprehensive income
$
400,097

 
$
245,907

 
$
202,220

 
$
(448,127
)
 
$
400,097



LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Balance Sheets
(In thousands)
 
June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
33,859

 
$
38,302

 
$
273,041

 
$

 
$
345,202

Receivables, net
65

 
380,076

 
921,373

 

 
1,301,514

Intercompany receivables, net
6,946

 

 
28,589

 
(35,535
)
 

Inventories

 
1,337,934

 
1,380,224

 

 
2,718,158

Prepaid expenses and other current assets
32,457

 
95,198

 
101,077

 

 
228,732

Total current assets
73,327

 
1,851,510

 
2,704,304

 
(35,535
)
 
4,593,606

Property, plant and equipment, net
979

 
578,952

 
608,533

 

 
1,188,464

Intangible assets:
 
 
 
 
 
 
 
 
 
Goodwill

 
2,005,253

 
2,416,723

 

 
4,421,976

Other intangibles, net

 
284,460

 
688,571

 

 
973,031

Investment in subsidiaries
5,573,396

 
108,485

 

 
(5,681,881
)
 

Intercompany notes receivable
1,094,619

 
26,716

 

 
(1,121,335
)
 

Equity method investments

 
336

 
202,317

 

 
202,653

Other assets
86,030

 
37,286

 
45,585

 

 
168,901

Total assets
$
6,828,351

 
$
4,892,998

 
$
6,666,033

 
$
(6,838,751
)
 
$
11,548,631

Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
15,084

 
$
342,529

 
$
624,030

 
$

 
$
981,643

Intercompany payables, net

 
28,589

 
6,946

 
(35,535
)
 

Accrued expenses:
 
 
 
 
 
 
 
 
 
Accrued payroll-related liabilities
6,143

 
57,909

 
99,242

 

 
163,294

Other accrued expenses
6,163

 
99,766

 
206,773

 

 
312,702

Refund liability

 
53,660

 
50,034

 

 
103,694

Other current liabilities
282

 
19,050

 
30,271

 

 
49,603

Current portion of long-term obligations
24,886

 
1,561

 
150,925

 

 
177,372

Total current liabilities
52,558

 
603,064

 
1,168,221

 
(35,535
)
 
1,788,308

Long-term obligations, excluding current portion
1,891,254

 
8,012

 
2,361,910

 

 
4,261,176

Intercompany notes payable

 
637,495

 
483,840

 
(1,121,335
)
 

Deferred income taxes
12,251

 
115,736

 
204,615

 

 
332,602

Other noncurrent liabilities
152,816

 
106,007

 
130,747

 

 
389,570

Stockholders' equity:
 
 
 
 
 
 
 
 
 
Total Company stockholders’ equity
4,719,472

 
3,422,684

 
2,259,197

 
(5,681,881
)
 
4,719,472

Noncontrolling interest

 

 
57,503

 

 
57,503

Total stockholders’ equity
4,719,472

 
3,422,684

 
2,316,700

 
(5,681,881
)
 
4,776,975

Total liabilities and stockholders' equity
$
6,828,351

 
$
4,892,998

 
$
6,666,033

 
$
(6,838,751
)
 
$
11,548,631



LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Balance Sheets
(In thousands)
 
December 31, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
34,360

 
$
35,131

 
$
210,275

 
$

 
$
279,766

Receivables, net

 
290,958

 
736,148

 

 
1,027,106

Intercompany receivables, net
2,669

 
3,010

 
230

 
(5,909
)
 

Inventories

 
1,334,766

 
1,046,017

 

 
2,380,783

Prepaid expenses and other current assets
34,136

 
44,849

 
55,494

 

 
134,479

Total current assets
71,165

 
1,708,714

 
2,048,164

 
(5,909
)
 
3,822,134

Property, plant and equipment, net
910

 
563,262

 
348,917

 

 
913,089

Intangible assets:
 
 
 
 
 
 
 
 
 
Goodwill

 
2,010,209

 
1,526,302

 

 
3,536,511

Other intangibles, net

 
291,036

 
452,733

 

 
743,769

Investment in subsidiaries
5,952,687

 
102,931

 

 
(6,055,618
)
 

Intercompany notes receivable
1,156,550

 
782,638

 

 
(1,939,188
)
 

Equity method investments

 
336

 
208,068

 

 
208,404

Other assets
70,590

 
33,597

 
38,778

 

 
142,965

Total assets
$
7,251,902

 
$
5,492,723

 
$
4,622,962

 
$
(8,000,715
)
 
$
9,366,872

Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
5,742

 
$
340,951

 
$
441,920

 
$

 
$
788,613

Intercompany payables, net

 
230

 
5,679

 
(5,909
)
 

Accrued expenses:
 
 
 
 
 
 
 
 
 
Accrued payroll-related liabilities
9,448

 
65,811

 
68,165

 

 
143,424

Other accrued expenses
5,219

 
95,900

 
117,481

 

 
218,600

Other current liabilities
282

 
27,066

 
18,379

 

 
45,727

Current portion of long-term obligations
16,468

 
1,912

 
107,980

 

 
126,360

Total current liabilities
37,159

 
531,870

 
759,604

 
(5,909
)
 
1,322,724

Long-term obligations, excluding current portion
2,095,826

 
7,372

 
1,174,422

 

 
3,277,620

Intercompany notes payable
750,000

 
677,708

 
511,480

 
(1,939,188
)
 

Deferred income taxes
12,402

 
116,021

 
123,936

 

 
252,359

Other noncurrent liabilities
158,346

 
101,189

 
47,981

 

 
307,516

Stockholders' equity:
 
 
 
 
 
 
 
 
 
Total Company stockholders’ equity
4,198,169

 
4,058,563

 
1,997,055

 
(6,055,618
)
 
4,198,169

Noncontrolling interest

 

 
8,484

 

 
8,484

Total stockholders’ equity
4,198,169

 
4,058,563

 
2,005,539

 
(6,055,618
)
 
4,206,653

Total liabilities and stockholders' equity
$
7,251,902

 
$
5,492,723

 
$
4,622,962

 
$
(8,000,715
)
 
$
9,366,872









LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Cash Flows
(In thousands)
 
For the Six Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
149,253

 
$
244,304

 
$
68,285

 
$
(133,173
)
 
$
328,669

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(260
)
 
(62,744
)
 
(52,417
)
 

 
(115,421
)
Investment and intercompany note activity with subsidiaries
48,339

 

 

 
(48,339
)
 

Acquisitions, net of cash acquired

 
(2,527
)
 
(1,133,443
)
 

 
(1,135,970
)
Payments of deferred purchase price on receivables securitization

 
14,926

 

 
(14,926
)
 

Other investing activities, net
887

 
423

 
864

 

 
2,174

Net cash provided by (used in) investing activities
48,966

 
(49,922
)
 
(1,184,996
)
 
(63,265
)
 
(1,249,217
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Proceeds from exercise of stock options
2,922

 

 

 

 
2,922

Taxes paid related to net share settlements of stock-based compensation awards
(3,834
)
 

 

 

 
(3,834
)
Debt issuance costs
(682
)
 

 
(16,077
)
 

 
(16,759
)
Proceeds from issuance of Euro Notes (2026/28)

 

 
1,232,100

 

 
1,232,100

Borrowings under revolving credit facilities
264,000

 

 
349,658

 

 
613,658

Repayments under revolving credit facilities
(451,931
)
 

 
(314,666
)
 

 
(766,597
)
Repayments under term loans
(8,810
)
 

 

 

 
(8,810
)
(Repayments) borrowings of other debt, net
(385
)
 
289

 
(2,348
)
 

 
(2,444
)
Other financing activities, net

 

 
4,107

 

 
4,107

Investment and intercompany note activity with parent

 
(42,596
)
 
(5,743
)
 
48,339

 

Dividends

 
(148,099
)
 

 
148,099

 

Net cash (used in) provided by financing activities
(198,720
)
 
(190,406
)
 
1,247,031

 
196,438

 
1,054,343

Effect of exchange rate changes on cash and cash equivalents

 
(805
)
 
(67,554
)
 

 
(68,359
)
Net (decrease) increase in cash and cash equivalents
(501
)
 
3,171

 
62,766

 

 
65,436

Cash and cash equivalents, beginning of period
34,360

 
35,131

 
210,275

 

 
279,766

Cash and cash equivalents, end of period
$
33,859

 
$
38,302

 
$
273,041

 
$

 
$
345,202



LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Cash Flows
(In thousands)
 
For the Six Months Ended June 30, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
156,127

 
$
284,227

 
$
114,476

 
$
(192,733
)
 
$
362,097

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(64
)
 
(41,718
)
 
(49,763
)
 

 
(91,545
)
Investment and intercompany note activity with subsidiaries
276,377

 

 

 
(276,377
)
 

Acquisitions, net of cash acquired

 
(78,121
)
 
(22,607
)
 

 
(100,728
)
Proceeds from disposals of business/investment

 
305,740

 
(4,443
)
 

 
301,297

Payments of deferred purchase price on receivables securitization (1)

 
6,362

 

 
(6,362
)
 

Other investing activities, net

 
(395
)
 
5,107

 

 
4,712

Net cash provided by (used in) investing activities
276,313

 
191,868

 
(71,706
)
 
(282,739
)
 
113,736

CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Proceeds from exercise of stock options
5,151

 

 

 

 
5,151

Taxes paid related to net share settlements of stock-based compensation awards
(3,955
)
 

 

 

 
(3,955
)
Borrowings under revolving credit facilities
97,000

 

 
65,794

 

 
162,794

Repayments under revolving credit facilities
(515,931
)
 

 
(69,523
)
 

 
(585,454
)
Repayments under term loans
(18,590
)
 

 

 

 
(18,590
)
Borrowings under receivables securitization facility

 

 
150

 

 
150

Repayments under receivables securitization facility

 

 
(5,000
)
 

 
(5,000
)
(Repayments) borrowings of other debt, net
(1,700
)
 
(1,161
)
 
22,452

 

 
19,591

Payments of other obligations

 
(1,336
)
 
(743
)
 

 
(2,079
)
Other financing activities, net

 
5,000

 
(684
)
 

 
4,316

Investment and intercompany note activity with parent

 
(269,668
)
 
(6,709
)
 
276,377

 

Dividends

 
(199,095
)
 

 
199,095

 

Net cash (used in) provided by financing activities
(438,025
)
 
(466,260
)
 
5,737

 
475,472

 
(423,076
)
Effect of exchange rate changes on cash and cash equivalents

 
521

 
15,750

 

 
16,271

Net (decrease) increase in cash and cash equivalents
(5,585
)
 
10,356

 
64,257

 

 
69,028

Cash and cash equivalents of continuing operations, beginning of period
33,030

 
35,360

 
159,010

 

 
227,400

Add: Cash and cash equivalents of discontinued operations, beginning of period

 
149

 
6,967

 

 
7,116

Cash and cash equivalents of continuing and discontinued operations, beginning of period
33,030

 
35,509

 
165,977

 
$

 
234,516

Cash and cash equivalents, end of period
$
27,445

 
$
45,865

 
$
230,234

 
$

 
$
303,544


(1) Reflects the impact of adopting ASU 2016-15
v3.10.0.1
Summary of Significant Accounting Policies (Policies)
6 Months Ended
Jun. 30, 2018
Accounting Policies [Abstract]  
Receivables and Allowance for Doubtful Accounts
We have a reserve for uncollectible accounts, which was approximately $64 million and $58 million at June 30, 2018 and December 31, 2017, respectively. Our May 2018 acquisition of Stahlgruber contributed $3 million to our reserve for uncollectible accounts. See Note 2, "Business Combinations" for further information on our acquisitions.
Inventory
Inventories consist of the following (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Aftermarket and refurbished products
$
2,208,122

 
$
1,877,653

Salvage and remanufactured products
490,325

 
487,108

Manufactured products
19,711

 
16,022

Total inventories
$
2,718,158

 
$
2,380,783


    Aftermarket and refurbished products and salvage and remanufactured products are primarily composed of finished goods. As of June 30, 2018, manufactured products inventory was composed of $13 million of raw materials, $2 million of work in process, and $5 million of finished goods. As of December 31, 2017, manufactured products inventory was composed of $10 million of raw materials, $2 million of work in process, and $4 million of finished goods.
Our May 2018 acquisition of Stahlgruber contributed $352 million to our aftermarket and refurbished products inventory. See Note 2, "Business Combinations" for further information on our acquisitions.
Property and Equipment
Property, plant and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements that extend the useful life of the related asset are capitalized. As property, plant and equipment are sold or retired, the applicable cost and accumulated depreciation are removed from the accounts and any resulting gain or loss thereon is recognized. Construction in progress consists primarily of building and land improvements at our existing facilities. Depreciation is calculated using the straight-line method over the estimated useful lives or, in the case of leasehold improvements, the term of the related lease and reasonably assured renewal periods, if shorter.
Our estimated useful lives are as follows:
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
Property, plant and equipment consists of the following (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Land and improvements
$
187,210

 
$
137,790

Buildings and improvements
367,550

 
233,078

Machinery and equipment
601,967

 
521,526

Computer equipment and software
142,363

 
133,753

Vehicles and trailers
171,639

 
161,269

Furniture and fixtures
50,772

 
31,794

Leasehold improvements
279,259

 
257,506

 
1,800,760

 
1,476,716

Less—Accumulated depreciation
(661,819
)
 
(606,112
)
Construction in progress
49,523

 
42,485

Total property, plant and equipment, net
$
1,188,464

 
$
913,089

    

The components of opening property, plant and equipment acquired as part of our acquisition of Stahlgruber in May 2018 are as follows (in thousands):
 
 
 
Gross Amount
Land and improvements
$
47,281

Buildings and improvements
125,649

Machinery and equipment
49,384

Computer equipment and software
3,760

Vehicles and trailers
643

Furniture and fixtures
28,535

Leasehold improvements
1,890

 
257,142

Construction in progress
3,496

Total property, plant and equipment
$
260,638

Intangible Assets
Intangible assets consist primarily of goodwill (the cost of purchased businesses in excess of the fair value of the identifiable net assets acquired) and other specifically identifiable intangible assets, such as trade names, trademarks, customer and supplier relationships, software and other technology related assets, and covenants not to compete.
The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2018 are as follows (in thousands):
 
North America
 
Europe
 
Specialty
 
Total
Balance as of January 1, 2018
$
1,709,354

 
$
1,414,898

 
$
412,259

 
$
3,536,511

Business acquisitions and adjustments to previously recorded goodwill
714

 
934,844

 
(5,667
)
 
929,891

Exchange rate effects
(5,078
)
 
(39,536
)
 
188

 
(44,426
)
Balance as of June 30, 2018
$
1,704,990

 
$
2,310,206

 
$
406,780

 
$
4,421,976


During the six months ended June 30, 2018, we recorded $931 million of goodwill related to our acquisition of Stahlgruber. See Note 2, "Business Combinations" for further information on our acquisitions.
The components of other intangibles, net are as follows (in thousands):
 
June 30, 2018
 
December 31, 2017
Intangible assets subject to amortization
$
890,931

 
$
664,969

Indefinite-lived intangible assets
 
 
 
Trademarks
81,300

 
78,800

Other indefinite-lived intangible assets
800

 

Total
$
973,031

 
$
743,769



The components of intangible assets subject to amortization are as follows (in thousands):
 
June 30, 2018
 
December 31, 2017
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Trade names and trademarks
$
494,456

 
$
(82,715
)
 
$
411,741

 
$
327,332

 
$
(75,095
)
 
$
252,237

Customer and supplier relationships
580,314

 
(196,983
)
 
383,331

 
510,113

 
(167,532
)
 
342,581

Software and other technology related assets
160,110

 
(68,163
)
 
91,947

 
124,049

 
(59,081
)
 
64,968

Covenants not to compete
13,550

 
(9,638
)
 
3,912

 
14,981

 
(9,798
)
 
5,183

Total
$
1,248,430

 
$
(357,499
)
 
$
890,931

 
$
976,475

 
$
(311,506
)
 
$
664,969



The components of intangible assets acquired as part of our acquisition of Stahlgruber in May 2018 are as follows (in thousands):
 
Gross Amount
Trade names and trademarks
$
173,382

Customer and supplier relationships
78,239

Software and other technology related assets
28,778

 
$
280,399

The weighted-average amortization periods for our intangible assets acquired during the six months ended June 30, 2018 and the year ended December 31, 2017 are as follows (in years):
 
Six Months Ended
 
Year Ended
 
June 30, 2018
 
December 31, 2017
 
Stahlgruber
 
All Acquisitions
Trade names and trademarks
19.9
 
11.2
Customer and supplier relationships
3.0
 
18.6
Software and other technology related assets
7.4
 
11.1
Covenants not to compete
-
 
4.4
Total intangible assets
13.9
 
16.5

Our estimated useful lives for our finite-lived intangible assets are as follows:
 
Method of Amortization
 
Useful Life
Trade names and trademarks
Straight-line
 
4-30 years
Customer and supplier relationships
Accelerated
 
3-20 years
Software and other technology related assets
Straight-line
 
3-15 years
Covenants not to compete
Straight-line
 
2-5 years

Amortization expense for intangibles was $30 million and $54 million during the three and six months ended June 30, 2018, respectively, and $25 million and $48 million during the three and six months ended June 30, 2017, respectively. Estimated amortization expense for each of the five years in the period ending December 31, 2022 is $78 million (for the remaining six months of 2018), $129 million, $98 million, $73 million and $61 million, respectively.
Investment in Unconsolidated Subsidiary
Our investment in unconsolidated subsidiaries was $203 million and $208 million as of June 30, 2018 and December 31, 2017, respectively. On December 1, 2016, we acquired a 26.5% equity interest in Mekonomen AB ("Mekonomen") for an aggregate purchase price of $181 million. Headquartered in Stockholm, Sweden, Mekonomen is the leading independent car parts and service chain in the Nordic region of Europe, offering a range of products including spare parts and accessories for cars, and workshop services for consumers and businesses. We are accounting for our interest in Mekonomen using the equity method of accounting, as our investment gives us the ability to exercise significant influence, but not control, over the investee. As of June 30, 2018, the book value of our investment in Mekonomen exceeded our share of the book value of Mekonomen's net assets by $122 million; this difference is primarily related to goodwill and the fair value of other intangible assets. We are recording our equity in the net earnings of Mekonomen on a one quarter lag. We recorded equity in earnings of $1 million and $2 million during the three and six months ended June 30, 2018, respectively, and $2 million during each of the three and six months ended June 30, 2017 related to our investment in Mekonomen, including adjustments to convert the results to GAAP and to recognize the impact of our purchase accounting adjustments. In May 2018 and May 2017, we received cash dividends of $8 million (SEK 67 million) and $7 million (SEK 67 million), respectively, related to our investment in Mekonomen. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at June 30, 2018 was $132 million ($168 million as of August 2, 2018) compared to a carrying value of $194 million. We evaluated our investment in Mekonomen for other-than-temporary impairment and concluded the decline in fair value was not other-than-temporary, but a prolonged stock price decrease will cause the decline to be a permanent impairment.
Warranty Reserve
Warranty Reserve
Some of our salvage mechanical products are sold with a standard six month warranty against defects. Additionally, some of our remanufactured engines are sold with a standard three year warranty against defects. We also provide a limited lifetime warranty for certain of our aftermarket products. These assurance-type warranties are not considered a separate performance obligation and thus, no transaction price is allocated to them. We record the warranty costs in Cost of goods sold on our Unaudited Condensed Consolidated Statements of Income. Our warranty reserve is calculated using historical claim information to project future warranty claims activity and is recorded within Other accrued expenses and Other noncurrent liabilities on our Unaudited Condensed Consolidated Balance Sheets based on the expected timing of the related payments.
The changes in the warranty reserve are as follows (in thousands):
Balance as of December 31, 2017
$
23,151

Warranty expense
22,992

Warranty claims
(21,088
)
Balance as of June 30, 2018
$
25,055


Recent Accounting Pronouncements
Recent Accounting Pronouncements
Adoption of New Revenue Standard
In May 2014, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update 2014-09, "Revenue from Contracts with Customers" ("ASU 2014-09"). This update outlines a new comprehensive revenue recognition model that supersedes the prior revenue recognition guidance and requires companies to recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The FASB has issued several updates to ASU 2014-09, which collectively with ASU 2014-09, represent the FASB Accounting Standards Codification Topic 606 (“ASC 606”). On January 1, 2018, we adopted ASC 606 for all contracts using the modified retrospective method, which means the historical periods are presented under the previous revenue standards with the cumulative net income effect being adjusted through retained earnings.
Most of the changes resulting from our adoption of ASC 606 were changes in presentation within the Unaudited Condensed Consolidated Balance Sheets and the Unaudited Condensed Consolidated Statements of Income. Therefore, while we made adjustments to certain opening balances on our January 1, 2018 balance sheet, we made no adjustments to opening retained earnings. We expect the impact of the adoption of ASC 606 to be immaterial to our net income on an ongoing basis. See Note 5, "Revenue Recognition" for the required disclosures under ASC 606.
With the adoption of ASC 606, we reclassified certain amounts related to variable consideration. Under ASC 606, we are required to present a refund liability and a returns asset within the Unaudited Condensed Consolidated Balance Sheet, whereas in periods prior to adoption, we presented the estimated margin impact of expected returns as a contra-asset within accounts receivable. Additionally, under ASC 606, the changes in the refund liability are reported in revenue, and the changes in the returns assets are reported in Cost of goods sold in the Unaudited Condensed Consolidated Statements of Income. Prior to adoption, the change in the reserve for returns was generally reported as a net amount within revenue. As a result, the income statement presentation was adjusted concurrently with the balance sheet change beginning in 2018.
The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASC 606 was as follows (in thousands):
 
Balance as of December 31, 2017
 
Adjustments Due to ASC 606
 
Balance as of January 1, 2018
Balance Sheet
 
 
 
 
 
Assets
 
 
 
 
 
Accounts receivable
$
1,027,106

 
$
38,511

 
$
1,065,617

Prepaid expenses and other current assets
134,479

 
44,508

 
178,987

Liabilities
 
 
 
 
 
Refund liability

 
83,019

 
83,019


The impact of the adoption of ASC 606 on our Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018 and our Unaudited Condensed Consolidated Statement of Income for the three and six months ended June 30, 2018 was as follows (in thousands):
 
Balance as of June 30, 2018
 
As Reported
 
Amounts Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Balance Sheet
 
 
 
 
 
Assets
 
 
 
 
 
Accounts receivable
$
1,301,514

 
$
1,254,189

 
$
47,325

Prepaid expenses and other current assets
228,732

 
172,363

 
56,369

Liabilities
 
 
 
 
 
Refund liability
103,694

 

 
103,694

 
For the three months ended June 30, 2018
 
As Reported
 
Amounts Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Income Statement
 
 
 
 
 
Revenue
$
3,030,751

 
$
3,030,378

 
$
373

Cost of goods sold
1,868,872

 
1,867,781

 
1,091

Selling, general and administrative expenses
826,044

 
826,762

 
(718
)
 
For the six months ended June 30, 2018
 
As Reported
 
Amounts Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Income Statement
 
 
 
 
 
Revenue
$
5,751,515

 
$
5,759,091

 
$
(7,576
)
Cost of goods sold
3,535,665

 
3,541,955

 
(6,290
)
Selling, general and administrative expenses
1,592,935

 
1,594,221

 
(1,286
)
We have not included a table of the impact of the balance sheet adjustments on the Unaudited Condensed Consolidated Statement of Cash Flows as the adjustment will net to zero within the operating activities section of this statement.
Under ASC 606, we have elected not to adjust consideration for the effect of a significant financing component at contract inception if the period between the transfer of goods to the customer and payment received from the customer is one year or less. Generally, our payment terms are short term in nature, but in some instances we may offer extended terms to customers exceeding one year such that interest would be accrued with respect to those contracts. The interest that would be accrued related to these contracts is immaterial at June 30, 2018.
Under ASC 340, "Other Assets and Deferred Costs," we have elected to recognize incremental costs of obtaining a contract (commissions earned by our sales representatives on product sales) as an expense when incurred, as we believe the amortization period of the asset would be one year or less due to the short-term nature of our contracts.
Other Recently Adopted Accounting Pronouncements
During the first quarter of 2018, we adopted ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities” (“ASU 2016-01”), which changes how entities will recognize, measure, present and make disclosures about certain financial assets and financial liabilities. The adoption of ASU 2016-01 did not have a significant impact on our financial position, results of operations, cash flows or disclosures.
During the first quarter of 2018, we adopted ASU No. 2016-15, "Classification of Certain Cash Receipts and Cash Payments" ("ASU 2016-15"), which includes guidance on classification for the following items: debt prepayment or debt extinguishment costs, settlement of zero coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims and corporate-owned or bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and other separately identifiable cash flows where application of the predominance principle is prescribed. No adjustments were required in our Unaudited Condensed Consolidated Statement of Cash Flows upon adoption. Within our Unaudited Condensed Consolidating Statements of Cash Flows in Note 17, "Condensed Consolidating Financial Information," we now present a new line item, Payments of deferred purchase price on receivables securitization, as a result of adopting ASU 2016-15; prior year cash flow information within this footnote has been recast to reflect the impact of adopting this accounting standard. Other than the addition of this new line item, there was no impact to our Unaudited Condensed Consolidating Statements of Cash Flows upon adoption.
During the first quarter of 2018, we adopted ASU No. 2017-01 "Clarifying the Definition of a Business" (“ASU 2017-01”), which requires an evaluation of whether substantially all of the fair value of assets acquired is concentrated in a single identifiable asset or a group of similar identifiable assets. If so, the transaction does not qualify as a business. The guidance also requires an acquired business to include at least one substantive process and narrows the definition of outputs.  The adoption of ASU 2017-01 did not have a material impact on our unaudited condensed consolidated financial statements.
During the first quarter of 2018, we adopted ASU No. 2018-02, "Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income" ("ASU 2018-02"), which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the reduction of the U.S. federal statutory income tax rate to 21% from 35% due to the enactment of the Tax Cuts and Jobs Act of 2017 (the "Tax Act"). In addition, under ASU 2018-02, an entity is required to provide certain disclosures regarding stranded tax effects. ASU 2018-02 is effective for fiscal years and interim periods beginning after December 15, 2018; early adoption is permitted. As a result of the adoption of ASU 2018-02, we recorded a $5 million reclassification to increase Accumulated Other Comprehensive (Loss) Income and decrease Retained Earnings.
During the first quarter of 2018, we adopted ASU No. 2017-07, "Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" ("ASU 2017-07"), which requires presentation of the current service cost component of net periodic benefit expense with other current compensation expenses for the related employees, and requires presentation of the remaining components of net periodic benefit expense, such as interest, expected return on plan assets, and amortization of actuarial gains and losses, outside of operating income. ASU 2017-07 also specifies that, on a prospective basis, only the service cost component is eligible for capitalization into inventory or other assets. While the income statement classification provisions of ASU 2017-07 are applicable on a retrospective basis, due to the immaterial impact to our Unaudited Condensed Consolidated Statements of Income in prior periods, we did not recast prior period income statement information and adopted the classification provisions on a prospective basis. The change in the capitalization provisions under ASU 2017-07 did not have a material impact on our unaudited condensed consolidated financial statements. See Note 13, "Employee Benefit Plans," for further disclosure on the components of net periodic benefit expense and classification of the components within our Unaudited Condensed Consolidated Statements of Income for the three and six months ended June 30, 2018 and 2017.
Recently Issued Accounting Pronouncements
In February 2016, the FASB issued ASU 2016-02, "Leases" ("ASU 2016-02"), to increase transparency and comparability by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The main difference between current GAAP and ASU 2016-02 is the recognition of lease assets and lease liabilities by lessees for those leases classified as operating leases under current GAAP. ASU 2016-02 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2018. The standard requires that entities apply the effects of these changes using a modified retrospective approach, which includes a number of optional practical expedients. While we are still in the process of quantifying the impact that the adoption of ASU 2016-02 will have on our consolidated financial statements and related disclosures, we anticipate the adoption will materially affect our consolidated balance sheet and disclosures, as the majority of our operating leases will be recorded on the balance sheet under ASU 2016-02. While we do not anticipate the adoption of this accounting standard to have a material impact on our consolidated statements of income at this time, this conclusion may change as we finalize our assessment. In order to assist in our timely implementation of the new standard, we have purchased new software to track our leases. We have engaged a third party to assist with the implementation of the new software with an expectation to complete the implementation by the end of 2018. During the second quarter, we completed phase one of the software roll-out for our North America and Specialty operations.
In August 2017, the FASB issued ASU No. 2017-12, "Targeted Improvements to Accounting for Hedging Activities" ("ASU 2017-12"), which amends the hedge accounting recognition and presentation requirements in ASC 815 ("Derivatives and Hedging"). ASU 2017-12 significantly alters the hedge accounting model by making it easier for an entity to achieve and maintain hedge accounting and provides for accounting that better reflects an entity's risk management activities. ASU 2017-12 is effective for fiscal years and interim periods beginning after December 15, 2018; early adoption is permitted. Entities will adopt the provisions of ASU 2017-12 by applying a modified retrospective approach to existing hedging relationships as of the adoption date. At this time, we are still evaluating the impact of this standard on our financial statements.

v3.10.0.1
Business Combinations (Tables)
6 Months Ended
Jun. 30, 2018
Business Combinations [Abstract]  
Purchase Price Allocations For Acquisitions
The purchase price allocations for the acquisitions completed during the six months ended June 30, 2018 and the year ended December 31, 2017 are as follows (in thousands):
 
Six Months Ended
 
Year Ended
 
June 30, 2018
 
December, 31, 2017
 
Stahlgruber
 
Other Acquisitions (2)
 
Total
 
All
Acquisitions
 (1)
Receivables
$
143,785

 
$
3,276

 
$
147,061

 
$
73,782

Receivable reserves
(2,818
)
 
(663
)
 
(3,481
)
 
(7,032
)
Inventories (3)
352,053

 
4,168

 
356,221

 
150,342

Prepaid expenses and other current assets
7,287

 
28

 
7,315

 
(295
)
Property, plant and equipment
260,638

 
2,046

 
262,684

 
41,039

Goodwill
930,567

 
(676
)
 
929,891

 
314,817

Other intangibles
280,399

 
5,134

 
285,533

 
181,216

Other assets
16,625

 
265

 
16,890

 
3,257

Deferred income taxes
(98,497
)
 
(1,605
)
 
(100,102
)
 
(65,087
)
Current liabilities assumed
(315,175
)
 
(6,915
)
 
(322,090
)
 
(111,484
)
Debt assumed
(65,852
)
 

 
(65,852
)
 
(33,586
)
Other noncurrent liabilities assumed (4)
(83,637
)
 

 
(83,637
)
 
(1,917
)
Noncontrolling interest
(44,250
)
 

 
(44,250
)
 

Contingent consideration liabilities

 
(34
)
 
(34
)
 
(6,234
)
Other purchase price obligations
(2,349
)
 
3,312

 
963

 
(5,074
)
Stock issued
(251,334
)
 

 
(251,334
)
 

Notes issued

 
(571
)
 
(571
)
 
(20,187
)
Settlement of pre-existing balances

 

 

 
242

Gains on bargain purchases (5)

 
(328
)
 
(328
)
 
(3,870
)
Settlement of other purchase price obligations (non-interest bearing)

 
1,091

 
1,091

 
3,159

Cash used in acquisitions, net of cash acquired
$
1,127,442

 
$
8,528

 
$
1,135,970

 
$
513,088

Pro Forma Effect Of Businesses Acquired
The following pro forma summary presents the effect of the businesses acquired during the six months ended June 30, 2018 as though the businesses had been acquired as of January 1, 2017, and the businesses acquired during the year ended December 31, 2017 as though they had been acquired as of January 1, 2016. The pro forma adjustments are based upon unaudited financial information of the acquired entities (in thousands, except per share data):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Revenue, as reported
$
3,030,751

 
$
2,458,411

 
$
5,751,515

 
$
4,801,254

Revenue of purchased businesses for the period prior to acquisition:
 
 
 
 
 
 
 
Stahlgruber
336,318

 
432,658

 
815,405

 
813,042

Other acquisitions
2,687

 
127,358

 
8,844

 
272,063

Pro forma revenue
$
3,369,756

 
$
3,018,427

 
$
6,575,764

 
$
5,886,359

 
 
 
 
 
 
 
 
Income from continuing operations, as reported (1)
$
157,866

 
$
150,914

 
$
310,629

 
$
291,723

Income from continuing operations of purchased businesses for the period prior to acquisition, and pro forma purchase accounting adjustments:
 
 
 
 
 
 
 
Stahlgruber
9,864

 
1,267

 
2,635

 
(6,321
)
Other acquisitions
69

 
5,067

 
238

 
12,579

Acquisition related expenses, net of tax (2)
11,744

 
1,465

 
13,305

 
2,709

Pro forma income from continuing operations
$
179,543

 
$
158,713

 
$
326,807

 
$
300,690

 
 
 
 
 
 
 
 
Earnings per share from continuing operations, basic - as reported
$
0.51

 
$
0.49

 
$
1.00

 
$
0.95

Effect of purchased businesses for the period prior to acquisition:
 
 
 
 
 
 
 
Stahlgruber
0.03

 
0.00

 
0.01

 
(0.02
)
Other acquisitions
0.00

 
0.02

 
0.00

 
0.04

Acquisition related expenses, net of tax (2)
0.04

 
0.00

 
0.04

 
0.01

Impact of share issuance from acquisition of Stahlgruber
(0.01
)
 
(0.01
)
 
(0.02
)
 
(0.02
)
Pro forma earnings per share from continuing operations, basic (3) 
$
0.56

 
$
0.50

 
$
1.03

 
$
0.95

 
 
 
 
 
 
 
 
Earnings per share from continuing operations, diluted - as reported
$
0.50

 
$
0.49

 
$
0.99

 
$
0.94

Effect of purchased businesses for the period prior to acquisition:
 
 
 
 
 
 
 
Stahlgruber
0.03

 
0.00

 
0.01

 
(0.02
)
Other acquisitions
0.00

 
0.02

 
0.00

 
0.04

Acquisition related expenses, net of tax (2)
0.04

 
0.00

 
0.04

 
0.01

Impact of share issuance from acquisition of Stahlgruber
(0.01
)
 
(0.01
)
 
(0.02
)
 
(0.02
)
Pro forma earnings per share from continuing operations, diluted (3) 
$
0.56

 
$
0.50

 
$
1.02

 
$
0.94

v3.10.0.1
Discontinued Operations Discontinued Operations Income statement (Tables)
6 Months Ended
Jun. 30, 2017
Disposal Groups, Including Discontinued Operations [Table Text Block]
The following table summarizes the operating results of the Company’s discontinued operations related to the sale described above for the six months ended June 30, 2017, as presented in Net loss from discontinued operations on the Unaudited Condensed Consolidated Statements of Income (in thousands):
 
Six Months Ended
 
June 30, 2017
Revenue
$
111,130

Cost of goods sold
100,084

Selling, general and administrative expenses
8,369

Operating income
2,677

Interest and other income, net (1)
1,204

Income from discontinued operations before taxes
3,881

Provision for income taxes
3,598

Equity in loss of unconsolidated subsidiaries
(534
)
Loss from discontinued operations, net of tax
(251
)
Loss on sale of discontinued operations, net of tax (2)
(4,280
)
Net loss from discontinued operations
$
(4,531
)
v3.10.0.1
Summary of Significant Accounting Policies (Tables)
6 Months Ended
Jun. 30, 2018
Property, Plant and Equipment [Line Items]  
Property and Equipment
Property, plant and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements that extend the useful life of the related asset are capitalized. As property, plant and equipment are sold or retired, the applicable cost and accumulated depreciation are removed from the accounts and any resulting gain or loss thereon is recognized. Construction in progress consists primarily of building and land improvements at our existing facilities. Depreciation is calculated using the straight-line method over the estimated useful lives or, in the case of leasehold improvements, the term of the related lease and reasonably assured renewal periods, if shorter.
Our estimated useful lives are as follows:
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
Property, plant and equipment consists of the following (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Land and improvements
$
187,210

 
$
137,790

Buildings and improvements
367,550

 
233,078

Machinery and equipment
601,967

 
521,526

Computer equipment and software
142,363

 
133,753

Vehicles and trailers
171,639

 
161,269

Furniture and fixtures
50,772

 
31,794

Leasehold improvements
279,259

 
257,506

 
1,800,760

 
1,476,716

Less—Accumulated depreciation
(661,819
)
 
(606,112
)
Construction in progress
49,523

 
42,485

Total property, plant and equipment, net
$
1,188,464

 
$
913,089

    

The components of opening property, plant and equipment acquired as part of our acquisition of Stahlgruber in May 2018 are as follows (in thousands):
 
 
 
Gross Amount
Land and improvements
$
47,281

Buildings and improvements
125,649

Machinery and equipment
49,384

Computer equipment and software
3,760

Vehicles and trailers
643

Furniture and fixtures
28,535

Leasehold improvements
1,890

 
257,142

Construction in progress
3,496

Total property, plant and equipment
$
260,638

Schedule Of Inventory
Inventories consist of the following (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Aftermarket and refurbished products
$
2,208,122

 
$
1,877,653

Salvage and remanufactured products
490,325

 
487,108

Manufactured products
19,711

 
16,022

Total inventories
$
2,718,158

 
$
2,380,783

Changes In Carrying Amount Of Goodwill
Intangible assets consist primarily of goodwill (the cost of purchased businesses in excess of the fair value of the identifiable net assets acquired) and other specifically identifiable intangible assets, such as trade names, trademarks, customer and supplier relationships, software and other technology related assets, and covenants not to compete.
The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2018 are as follows (in thousands):
 
North America
 
Europe
 
Specialty
 
Total
Balance as of January 1, 2018
$
1,709,354

 
$
1,414,898

 
$
412,259

 
$
3,536,511

Business acquisitions and adjustments to previously recorded goodwill
714

 
934,844

 
(5,667
)
 
929,891

Exchange rate effects
(5,078
)
 
(39,536
)
 
188

 
(44,426
)
Balance as of June 30, 2018
$
1,704,990

 
$
2,310,206

 
$
406,780

 
$
4,421,976


During the six months ended June 30, 2018, we recorded $931 million of goodwill related to our acquisition of Stahlgruber. See Note 2, "Business Combinations" for further information on our acquisitions.
Schedule of Finite-Lived and Indefinite-Lived Intangibles [Table Text Block]
The components of other intangibles, net are as follows (in thousands):
 
June 30, 2018
 
December 31, 2017
Intangible assets subject to amortization
$
890,931

 
$
664,969

Indefinite-lived intangible assets
 
 
 
Trademarks
81,300

 
78,800

Other indefinite-lived intangible assets
800

 

Total
$
973,031

 
$
743,769

Cumulative Impact of ASC 606 on Balance Sheet as of the Beginning of Fiscal Year
The cumulative effect of the changes made to our consolidated January 1, 2018 balance sheet for the adoption of ASC 606 was as follows (in thousands):
 
Balance as of December 31, 2017
 
Adjustments Due to ASC 606
 
Balance as of January 1, 2018
Balance Sheet
 
 
 
 
 
Assets
 
 
 
 
 
Accounts receivable
$
1,027,106

 
$
38,511

 
$
1,065,617

Prepaid expenses and other current assets
134,479

 
44,508

 
178,987

Liabilities
 
 
 
 
 
Refund liability

 
83,019

 
83,019

Schedule of Estimated Useful Lives, Finite Lived Intangible Assets [Table Text Block]
Our estimated useful lives for our finite-lived intangible assets are as follows:
 
Method of Amortization
 
Useful Life
Trade names and trademarks
Straight-line
 
4-30 years
Customer and supplier relationships
Accelerated
 
3-20 years
Software and other technology related assets
Straight-line
 
3-15 years
Covenants not to compete
Straight-line
 
2-5 years
Components Of Other Intangibles
The components of intangible assets subject to amortization are as follows (in thousands):
 
June 30, 2018
 
December 31, 2017
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
 
Gross
Carrying
Amount
 
Accumulated
Amortization
 
Net
Trade names and trademarks
$
494,456

 
$
(82,715
)
 
$
411,741

 
$
327,332

 
$
(75,095
)
 
$
252,237

Customer and supplier relationships
580,314

 
(196,983
)
 
383,331

 
510,113

 
(167,532
)
 
342,581

Software and other technology related assets
160,110

 
(68,163
)
 
91,947

 
124,049

 
(59,081
)
 
64,968

Covenants not to compete
13,550

 
(9,638
)
 
3,912

 
14,981

 
(9,798
)
 
5,183

Total
$
1,248,430

 
$
(357,499
)
 
$
890,931

 
$
976,475

 
$
(311,506
)
 
$
664,969

Useful Life - Intangible Assets
Method of Amortization
 
Useful Life Min
 
Useful Life Max
Trade names and trademarks
Straight-line
 
4 years
 
30 years
Customer and supplier relationships
Accelerated
 
3 years
 
20 years
Software and other technology related assets
Straight-line
 
3 years
 
15 years
Covenants not to compete
Straight-line
 
2 years
 
5 years
Cumulative Effect of Adoption of ASC 606 on Consolidated Financial Statements
The impact of the adoption of ASC 606 on our Unaudited Condensed Consolidated Balance Sheet as of June 30, 2018 and our Unaudited Condensed Consolidated Statement of Income for the three and six months ended June 30, 2018 was as follows (in thousands):
 
Balance as of June 30, 2018
 
As Reported
 
Amounts Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Balance Sheet
 
 
 
 
 
Assets
 
 
 
 
 
Accounts receivable
$
1,301,514

 
$
1,254,189

 
$
47,325

Prepaid expenses and other current assets
228,732

 
172,363

 
56,369

Liabilities
 
 
 
 
 
Refund liability
103,694

 

 
103,694

 
For the three months ended June 30, 2018
 
As Reported
 
Amounts Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Income Statement
 
 
 
 
 
Revenue
$
3,030,751

 
$
3,030,378

 
$
373

Cost of goods sold
1,868,872

 
1,867,781

 
1,091

Selling, general and administrative expenses
826,044

 
826,762

 
(718
)
 
For the six months ended June 30, 2018
 
As Reported
 
Amounts Without Adoption of ASC 606
 
Effect of Change Higher/(Lower)
Income Statement
 
 
 
 
 
Revenue
$
5,751,515

 
$
5,759,091

 
$
(7,576
)
Cost of goods sold
3,535,665

 
3,541,955

 
(6,290
)
Selling, general and administrative expenses
1,592,935

 
1,594,221

 
(1,286
)
Schedule of Product Warranty Liability [Table Text Block]
The changes in the warranty reserve are as follows (in thousands):
Balance as of December 31, 2017
$
23,151

Warranty expense
22,992

Warranty claims
(21,088
)
Balance as of June 30, 2018
$
25,055


The changes in deferred service-type warranty revenue are as follows (in thousands):
Balance as of January 1, 2018
$
19,465

Additional warranty revenue deferred
19,271

Warranty revenue recognized
(16,381
)
Balance as of June 30, 2018
$
22,355

v3.10.0.1
Financial Statement Information Property, Plant and Equipment [Table Text Block] (Tables)
6 Months Ended
Jun. 30, 2018
Property, Plant and Equipment [Line Items]  
Property, Plant and Equipment, Policy [Policy Text Block]
Property, plant and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements that extend the useful life of the related asset are capitalized. As property, plant and equipment are sold or retired, the applicable cost and accumulated depreciation are removed from the accounts and any resulting gain or loss thereon is recognized. Construction in progress consists primarily of building and land improvements at our existing facilities. Depreciation is calculated using the straight-line method over the estimated useful lives or, in the case of leasehold improvements, the term of the related lease and reasonably assured renewal periods, if shorter.
Our estimated useful lives are as follows:
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
Property, plant and equipment consists of the following (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Land and improvements
$
187,210

 
$
137,790

Buildings and improvements
367,550

 
233,078

Machinery and equipment
601,967

 
521,526

Computer equipment and software
142,363

 
133,753

Vehicles and trailers
171,639

 
161,269

Furniture and fixtures
50,772

 
31,794

Leasehold improvements
279,259

 
257,506

 
1,800,760

 
1,476,716

Less—Accumulated depreciation
(661,819
)
 
(606,112
)
Construction in progress
49,523

 
42,485

Total property, plant and equipment, net
$
1,188,464

 
$
913,089

    

The components of opening property, plant and equipment acquired as part of our acquisition of Stahlgruber in May 2018 are as follows (in thousands):
 
 
 
Gross Amount
Land and improvements
$
47,281

Buildings and improvements
125,649

Machinery and equipment
49,384

Computer equipment and software
3,760

Vehicles and trailers
643

Furniture and fixtures
28,535

Leasehold improvements
1,890

 
257,142

Construction in progress
3,496

Total property, plant and equipment
$
260,638

Property, Plant and Equipment [Table Text Block]
Useful Life - Property Plant & Equipment
 
Useful Life Min
 
Useful Life Max
Land improvements
 
10 years
 
20 years
Buildings and improvements
 
20 years
 
40 years
Machinery and equipment
 
3 years
 
20 years
Computer equipment and software
 
3 years
 
10 years
Vehicles and trailers
 
3 years
 
10 years
Furniture and fixtures
 
5 years
 
7 years
v3.10.0.1
Financial Statement Information Finite-Lived Intangible Assets Acquired as Part of Business Combination (Tables)
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Acquired Finite-Lived Intangible Assets [Line Items]    
Schedule of Goodwill [Table Text Block]
Intangible assets consist primarily of goodwill (the cost of purchased businesses in excess of the fair value of the identifiable net assets acquired) and other specifically identifiable intangible assets, such as trade names, trademarks, customer and supplier relationships, software and other technology related assets, and covenants not to compete.
The changes in the carrying amount of goodwill by reportable segment for the six months ended June 30, 2018 are as follows (in thousands):
 
North America
 
Europe
 
Specialty
 
Total
Balance as of January 1, 2018
$
1,709,354

 
$
1,414,898

 
$
412,259

 
$
3,536,511

Business acquisitions and adjustments to previously recorded goodwill
714

 
934,844

 
(5,667
)
 
929,891

Exchange rate effects
(5,078
)
 
(39,536
)
 
188

 
(44,426
)
Balance as of June 30, 2018
$
1,704,990

 
$
2,310,206

 
$
406,780

 
$
4,421,976


During the six months ended June 30, 2018, we recorded $931 million of goodwill related to our acquisition of Stahlgruber. See Note 2, "Business Combinations" for further information on our acquisitions.
 
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block]
The components of intangible assets acquired as part of our acquisition of Stahlgruber in May 2018 are as follows (in thousands):
 
Gross Amount
Trade names and trademarks
$
173,382

Customer and supplier relationships
78,239

Software and other technology related assets
28,778

 
$
280,399

 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 13 years 10 months 24 days 16 years 6 months
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life [Table Text Block]
The weighted-average amortization periods for our intangible assets acquired during the six months ended June 30, 2018 and the year ended December 31, 2017 are as follows (in years):
 
Six Months Ended
 
Year Ended
 
June 30, 2018
 
December 31, 2017
 
Stahlgruber
 
All Acquisitions
Trade names and trademarks
19.9
 
11.2
Customer and supplier relationships
3.0
 
18.6
Software and other technology related assets
7.4
 
11.1
Covenants not to compete
-
 
4.4
Total intangible assets
13.9
 
16.5
 
v3.10.0.1
Revenue Recognition Disaggregation of Revenue (Tables)
6 Months Ended
Jun. 30, 2018
Disaggregation of Revenue [Line Items]  
Disaggregation of Revenue [Table Text Block]
We report our revenue in two categories: (i) parts and services and (ii) other. The following table sets forth our revenue by category, with our parts and services revenue further disaggregated by reportable segment (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
North America
$
1,165,422

 
$
1,075,656

 
$
2,338,007

 
$
2,155,531

Europe
1,279,996

 
887,872

 
2,317,042

 
1,707,039

Specialty
411,633

 
362,355

 
762,307

 
676,254

Parts and services
2,857,051

 
2,325,883

 
5,417,356

 
4,538,824

Other
173,700

 
132,528

 
334,159

 
262,430

Total revenue
$
3,030,751

 
$
2,458,411

 
$
5,751,515

 
$
4,801,254

v3.10.0.1
Revenue Recognition Product Warranty Liability (Tables)
6 Months Ended
Jun. 30, 2018
Product Warranties Disclosures [Abstract]  
Schedule of Product Warranty Liability [Table Text Block]
The changes in the warranty reserve are as follows (in thousands):
Balance as of December 31, 2017
$
23,151

Warranty expense
22,992

Warranty claims
(21,088
)
Balance as of June 30, 2018
$
25,055


The changes in deferred service-type warranty revenue are as follows (in thousands):
Balance as of January 1, 2018
$
19,465

Additional warranty revenue deferred
19,271

Warranty revenue recognized
(16,381
)
Balance as of June 30, 2018
$
22,355

v3.10.0.1
Equity Incentive Plans (Tables)
6 Months Ended
Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Nonvested Restricted Stock Units Activity
The following table summarizes activity related to our RSUs under the Equity Incentive Plan for the six months ended June 30, 2018:
 
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, 2018
1,624,390

 
$
29.94

 
 
 
 
Granted
593,131

 
$
42.72

 
 
 
 
Vested
(414,625
)
 
$
28.95

 
 
 
 
Forfeited / Canceled
(25,961
)
 
$
32.62

 
 
 
 
Unvested as of June 30, 2018
1,776,935

 
$
34.40

 
 
 
 
Expected to vest after June 30, 2018
1,618,650

 
$
34.34

 
2.8
 
$
51,633

Schedule of Share-based Compensation, Stock Options, Activity
The following table summarizes activity related to our stock options under the Equity Incentive Plan for the six months ended June 30, 2018:
 
Number
Outstanding
 
Weighted
Average Exercise Price
 
Weighted Average Remaining Contractual Term
(in years)
 
Aggregate Intrinsic Value
   (in thousands) (1)
Balance as of January 1, 2018
1,738,073

 
$
9.20

 
 
 
 
Exercised
(321,267
)
 
$
9.10

 
 
 
$
9,450

Canceled
(509
)
 
$
32.31

 
 
 
 
Balance as of June 30, 2018
1,416,297

 
$
9.22

 
1.2
 
$
32,126

Exercisable as of June 30, 2018
1,416,297

 
$
9.22

 
1.2
 
$
32,126

v3.10.0.1
Earnings Per Share Schedule of Earnings Per Share, Basic and Diluted (Tables)
6 Months Ended
Jun. 30, 2018
Schedule of Earnings Per Share, Basic and Diluted [Line Items]  
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
The following chart sets forth the computation of earnings per share (in thousands, except per share amounts):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Income from continuing operations
$
157,866

 
$
150,914

 
$
310,629

 
$
291,723

Denominator for basic earnings per share—Weighted-average shares outstanding
312,556

 
308,407

 
311,045

 
308,218

Effect of dilutive securities:
 
 
 
 
 
 
 
RSUs
406

 
453

 
512

 
509

Stock options
1,050

 
1,536

 
1,131

 
1,622

Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding
314,012

 
310,396

 
312,688

 
310,349

Basic earnings per share from continuing operations
$
0.51

 
$
0.49

 
$
1.00

 
$
0.95

Diluted earnings per share from continuing operations
$
0.50

 
$
0.49

 
$
0.99

 
$
0.94

v3.10.0.1
Earnings Per Share Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables)
6 Months Ended
Jun. 30, 2018
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]  
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block]
The following table sets forth the number of employee stock-based compensation awards outstanding but not included in the computation of diluted earnings per share because their effect would have been antidilutive for the three and six months ended June 30, 2018 and 2017 (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Antidilutive securities:
 
 
 
 
 
 
 
RSUs
575

 

 
288

 
73

Stock options

 
76

 

 
77

v3.10.0.1
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Tables)
6 Months Ended
Jun. 30, 2018
Equity [Abstract]  
Accumulated Other Comprehensive Income (Loss)
The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands):
 
 
Three Months Ended
 
 
June 30, 2018
 
 
Foreign
Currency
Translation
 
Unrealized Gain (Loss)
on Cash Flow Hedges
 
Unrealized (Loss) Gain on Pension Plans
 
Other Comprehensive Loss (Income) from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive (Loss) Income
Beginning balance
 
$
(20,589
)
 
$
17,278

 
$
(9,393
)
 
$
(1,914
)
 
$
(14,618
)
Pretax (loss) income
 
(107,167
)
 
30,721

 
(690
)
 

 
(77,136
)
Income tax effect
 
2,003

 
(7,183
)
 
(174
)
 

 
(5,354
)
Reclassification of unrealized (gain) loss
 

 
(27,580
)
 
76

 

 
(27,504
)
Reclassification of deferred income taxes
 

 
6,448

 
(19
)
 

 
6,429

Other comprehensive income from unconsolidated subsidiaries
 

 

 

 
2,122

 
2,122

Adoption of ASU 2018-02
 

 

 

 

 

Ending balance
 
$
(125,753
)
 
$
19,684

 
$
(10,200
)
 
$
208

 
$
(116,061
)


 
 
Three Months Ended
 
 
June 30, 2017
 
 
Foreign
Currency
Translation
 
Unrealized Gain
(Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain
on Pension Plans
 
Other Comprehensive Loss from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive
(Loss) Income
Beginning balance
 
$
(250,950
)
 
$
11,254

 
$
(5,778
)
 
$
(162
)
 
$
(245,636
)
Pretax income (loss)
 
93,597

 
(30,179
)
 
(724
)
 

 
62,694

Income tax effect
 

 
11,136

 
275

 

 
11,411

Reclassification of unrealized loss (gain)
 

 
28,702

 
(550
)
 

 
28,152

Reclassification of deferred income taxes
 

 
(10,589
)
 
137

 

 
(10,452
)
Other comprehensive loss from unconsolidated subsidiaries
 

 

 

 
(439
)
 
(439
)
Ending balance
 
$
(157,353
)
 
$
10,324

 
$
(6,640
)
 
$
(601
)
 
$
(154,270
)


 
 
Six Months Ended
 
 
June 30, 2018
 
 
Foreign
Currency
Translation
 
Unrealized Gain (Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain on Pension Plans
 
Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive (Loss) Income
Beginning balance
 
$
(71,933
)
 
$
11,538

 
$
(8,772
)
 
$
(1,309
)
 
$
(70,476
)
Pretax (loss) income
 
(58,732
)
 
26,220

 
(1,319
)
 

 
(33,831
)
Income tax effect
 
2,053

 
(6,130
)
 
(166
)
 

 
(4,243
)
Reclassification of unrealized (gain) loss
 

 
(18,833
)
 
76

 

 
(18,757
)
Reclassification of deferred income taxes
 

 
4,403

 
(19
)
 

 
4,384

Other comprehensive income from unconsolidated subsidiaries
 

 

 

 
1,517

 
1,517

Adoption of ASU 2018-02
 
2,859

 
2,486

 

 

 
5,345

Ending balance
 
$
(125,753
)
 
$
19,684

 
$
(10,200
)
 
$
208

 
$
(116,061
)

 
 
Six Months Ended
 
 
June 30, 2017
 
 
Foreign
Currency
Translation
 
Unrealized Gain
(Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain
on Pension Plans
 
Other Comprehensive Loss from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive
(Loss) Income
Beginning balance
 
$
(272,529
)
 
$
8,091

 
$
(2,737
)
 
$

 
$
(267,175
)
Pretax income (loss)
 
113,665

 
(29,347
)
 
112

 

 
84,430

Income tax effect
 

 
10,780

 
(43
)
 

 
10,737

Reclassification of unrealized loss (gain)
 

 
32,959

 
(721
)
 

 
32,238

Reclassification of deferred income taxes
 

 
(12,159
)
 
185

 

 
(11,974
)
Disposal of business, net
 
1,511

 

 
(3,436
)
 

 
(1,925
)
Other comprehensive loss from unconsolidated subsidiaries
 

 

 

 
(601
)
 
(601
)
Ending balance
 
$
(157,353
)
 
$
10,324

 
$
(6,640
)
 
$
(601
)
 
$
(154,270
)
Accumulated Other Comprehensive Income (Loss)
The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands):
 
 
Three Months Ended
 
 
June 30, 2018
 
 
Foreign
Currency
Translation
 
Unrealized Gain (Loss)
on Cash Flow Hedges
 
Unrealized (Loss) Gain on Pension Plans
 
Other Comprehensive Loss (Income) from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive (Loss) Income
Beginning balance
 
$
(20,589
)
 
$
17,278

 
$
(9,393
)
 
$
(1,914
)
 
$
(14,618
)
Pretax (loss) income
 
(107,167
)
 
30,721

 
(690
)
 

 
(77,136
)
Income tax effect
 
2,003

 
(7,183
)
 
(174
)
 

 
(5,354
)
Reclassification of unrealized (gain) loss
 

 
(27,580
)
 
76

 

 
(27,504
)
Reclassification of deferred income taxes
 

 
6,448

 
(19
)
 

 
6,429

Other comprehensive income from unconsolidated subsidiaries
 

 

 

 
2,122

 
2,122

Adoption of ASU 2018-02
 

 

 

 

 

Ending balance
 
$
(125,753
)
 
$
19,684

 
$
(10,200
)
 
$
208

 
$
(116,061
)


 
 
Three Months Ended
 
 
June 30, 2017
 
 
Foreign
Currency
Translation
 
Unrealized Gain
(Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain
on Pension Plans
 
Other Comprehensive Loss from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive
(Loss) Income
Beginning balance
 
$
(250,950
)
 
$
11,254

 
$
(5,778
)
 
$
(162
)
 
$
(245,636
)
Pretax income (loss)
 
93,597

 
(30,179
)
 
(724
)
 

 
62,694

Income tax effect
 

 
11,136

 
275

 

 
11,411

Reclassification of unrealized loss (gain)
 

 
28,702

 
(550
)
 

 
28,152

Reclassification of deferred income taxes
 

 
(10,589
)
 
137

 

 
(10,452
)
Other comprehensive loss from unconsolidated subsidiaries
 

 

 

 
(439
)
 
(439
)
Ending balance
 
$
(157,353
)
 
$
10,324

 
$
(6,640
)
 
$
(601
)
 
$
(154,270
)


 
 
Six Months Ended
 
 
June 30, 2018
 
 
Foreign
Currency
Translation
 
Unrealized Gain (Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain on Pension Plans
 
Other Comprehensive (Loss) Income from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive (Loss) Income
Beginning balance
 
$
(71,933
)
 
$
11,538

 
$
(8,772
)
 
$
(1,309
)
 
$
(70,476
)
Pretax (loss) income
 
(58,732
)
 
26,220

 
(1,319
)
 

 
(33,831
)
Income tax effect
 
2,053

 
(6,130
)
 
(166
)
 

 
(4,243
)
Reclassification of unrealized (gain) loss
 

 
(18,833
)
 
76

 

 
(18,757
)
Reclassification of deferred income taxes
 

 
4,403

 
(19
)
 

 
4,384

Other comprehensive income from unconsolidated subsidiaries
 

 

 

 
1,517

 
1,517

Adoption of ASU 2018-02
 
2,859

 
2,486

 

 

 
5,345

Ending balance
 
$
(125,753
)
 
$
19,684

 
$
(10,200
)
 
$
208

 
$
(116,061
)

 
 
Six Months Ended
 
 
June 30, 2017
 
 
Foreign
Currency
Translation
 
Unrealized Gain
(Loss) on Cash Flow Hedges
 
Unrealized (Loss) Gain
on Pension Plans
 
Other Comprehensive Loss from Unconsolidated Subsidiaries
 
Accumulated
Other
Comprehensive
(Loss) Income
Beginning balance
 
$
(272,529
)
 
$
8,091

 
$
(2,737
)
 
$

 
$
(267,175
)
Pretax income (loss)
 
113,665

 
(29,347
)
 
112

 

 
84,430

Income tax effect
 

 
10,780

 
(43
)
 

 
10,737

Reclassification of unrealized loss (gain)
 

 
32,959

 
(721
)
 

 
32,238

Reclassification of deferred income taxes
 

 
(12,159
)
 
185

 

 
(11,974
)
Disposal of business, net
 
1,511

 

 
(3,436
)
 

 
(1,925
)
Other comprehensive loss from unconsolidated subsidiaries
 

 

 

 
(601
)
 
(601
)
Ending balance
 
$
(157,353
)
 
$
10,324

 
$
(6,640
)
 
$
(601
)
 
$
(154,270
)



Net unrealized gains on our interest rate swaps totaling $1 million and $3 million were reclassified to Interest expense, net in our Unaudited Condensed Consolidated Statements of Income during the three and six months ended June 30, 2018, respectively, compared to a loss of $2 million during the six months ended June 30, 2017; the amount reclassified to Interest expense, net during the three months ended June 30, 2017 was immaterial. We also reclassified gains of $3 million and $4 million to Interest expense, net related to the foreign currency forward component of our cross currency swaps during the three and six months ended June 30, 2018, respectively, compared to $2 million and $4 million during the three and six months ended June 30, 2017. Also related to our cross currency swaps, we reclassified gains of $24 million and $12 million to Other income, net in our Unaudited Condensed Consolidated Statements of Income during the three and six months ended June 30, 2018, respectively, compared to losses of $30 million and $36 million during the three and six months ended June 30, 2017; these gains and losses offset the impact of the remeasurement of the underlying contracts. The deferred income taxes related to our cash flow hedges were reclassified from Accumulated other comprehensive income (loss) to provision for income taxes.
As a result of the adoption of ASU 2018-02 in the first quarter of 2018, we recorded a $5 million reclassification to increase Accumulated Other Comprehensive (Loss) Income and decrease Retained Earnings. See Note 4, "Financial Statement Information" for further information regarding the adoption of ASU 2018-02.
v3.10.0.1
Long-Term Obligations (Tables)
6 Months Ended
Jun. 30, 2018
Debt Disclosure [Abstract]  
Schedule Of Long-Term Obligations
Long-term obligations consist of the following (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Senior secured credit agreement:
 
 
 
Term loans payable
$
695,990

 
$
704,800

Revolving credit facilities
1,120,911

 
1,283,551

U.S. Notes (2023)
600,000

 
600,000

Euro Notes (2024)
584,200

 
600,150

Euro Notes (2026/28)
1,168,400

 

Receivables securitization facility
100,000

 
100,000

Notes payable through October 2025 at weighted average interest rates of 1.5% and 1.4%, respectively
26,998

 
29,146

Other long-term debt at weighted average interest rates of 2.1% and 1.7%, respectively
179,501

 
110,633

Total debt
4,476,000

 
3,428,280

Less: long-term debt issuance costs
(32,832
)
 
(21,476
)
Less: current debt issuance costs
(4,620
)
 
(2,824
)
Total debt, net of debt issuance costs
4,438,548

 
3,403,980

Less: current maturities, net of debt issuance costs
(177,372
)
 
(126,360
)
Long term debt, net of debt issuance costs
$
4,261,176

 
$
3,277,620

v3.10.0.1
Derivative Instruments and Hedging Activities Derivative Instruments and Hedging Activities (Tables)
6 Months Ended
Jun. 30, 2018
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of Derivative Instruments [Table Text Block]
The following table summarizes the notional amounts and fair values of our designated cash flow hedges as of June 30, 2018 and December 31, 2017 (in thousands):
 
 
Notional Amount
 
Fair Value at June 30, 2018 (USD)
 
Fair Value at December 31, 2017 (USD)
 
 
June 30, 2018
 
December 31, 2017
 
Other Assets
 
Other Noncurrent Liabilities
 
Other Assets
 
Other Noncurrent Liabilities
Interest rate swap agreements
 
 
 
 
 
 
 
 
USD denominated
 
$
590,000

 
$
590,000

 
$
25,415

 
$

 
$
19,102

 
$

Cross currency swap agreements
 
 
 
 
 
 
 
 
USD/euro
 
$
398,614

 
$
406,546

 
10,382

 
52,208

 
5,504

 
61,492

Total cash flow hedges
 
$
35,797

 
$
52,208

 
$
24,606

 
$
61,492


v3.10.0.1
Fair Value Measurements (Tables)
6 Months Ended
Jun. 30, 2018
Fair Value Disclosures [Abstract]  
Financial Assets And Liabilities Measured At Fair Value On A Recurring Basis
The following tables present information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs we utilized to determine such fair value as of June 30, 2018 and December 31, 2017 (in thousands):
 
Balance as of June 30, 2018
 
Fair Value Measurements as of June 30, 2018
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Cash surrender value of life insurance
$
50,233

 
$

 
$
50,233

 
$

Interest rate swaps
25,415

 

 
25,415

 

Cross currency swap agreements
10,382

 

 
10,382

 

Total Assets
$
86,030

 
$

 
$
86,030

 
$

Liabilities:
 
 
 
 
 
 
 
Contingent consideration liabilities
$
2,725

 
$

 
$

 
$
2,725

Deferred compensation liabilities
51,564

 

 
51,564

 

Cross currency swap agreements
52,208

 

 
52,208

 

Total Liabilities
$
106,497

 
$

 
$
103,772

 
$
2,725

 
Balance as of December 31, 2017
 
Fair Value Measurements as of December 31, 2017
Level 1
 
Level 2
 
Level 3
Assets:
 
 
 
 
 
 
 
Cash surrender value of life insurance
$
45,984

 
$

 
$
45,984

 
$

Interest rate swaps
19,102

 

 
19,102

 

Cross currency swap agreements
5,504

 

 
5,504

 

Total Assets
$
70,590

 
$

 
$
70,590

 
$

Liabilities:
 
 
 
 
 
 
 
Contingent consideration liabilities
$
2,636

 
$

 
$

 
$
2,636

Deferred compensation liabilities
47,199

 

 
47,199

 

Cross currency swap agreements
61,492

 

 
61,492

 

Total Liabilities
$
111,327

 
$

 
$
108,691

 
$
2,636

v3.10.0.1
Employee Benefit Plans (Tables)
6 Months Ended
Jun. 30, 2018
Defined Benefit Plan Disclosure [Line Items]  
Schedule of Defined Benefit Plans Disclosures [Table Text Block]
Net periodic benefit expense for our defined benefit plans included the following components for the three and six months ended June 30, 2018 and 2017 (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Service cost
$
516

 
$
889

 
$
984

 
$
1,776

Interest cost
776

 
833

 
1,446

 
1,341

Expected return on plan assets
(783
)
 
(249
)
 
(1,500
)
 
(552
)
Amortization of prior service credit

 
(66
)
 

 
(130
)
Amortization of actuarial (gain) loss
76

 
(484
)
 
76

 
(591
)
Net periodic benefit expense
$
585

 
$
923

 
$
1,006

 
$
1,844

v3.10.0.1
Commitments and Contingencies (Tables)
6 Months Ended
Jun. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
Future Minimum Lease Commitments
The future minimum lease commitments under these leases at June 30, 2018 are as follows (in thousands):
Six months ending December 31, 2018
$
142,000

Years ending December 31:
 
2019
248,418

2020
206,988

2021
161,302

2022
128,298

2023
107,904

Thereafter
611,801

Future Minimum Lease Payments
$
1,606,711

v3.10.0.1
Income Taxes Income Taxes (Tables) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Mar. 31, 2018
Mar. 31, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Effective Income Tax Rate Reconciliation, Percent       26.30% 33.80%  
U.S. federal statutory rate     35.00%   35.00%  
Employee Service Share-based Compensation, Tax Benefit from Exercise of Stock Options       $ 3,000 $ 6,000  
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent 1.00%          
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities $ 100,102     $ 100,102   $ 65,087
Tax Cuts and Jobs Act of 2017, transition tax for accumulated foreign earnings, provisional amount           51,000
Tax Cuts and Jobs Act of 2017, tax benefit from decrease to net deferred tax liabilities, provisional amount           $ 73,000
Accounting Standards Update 2018-02 [Member]            
U.S. federal statutory rate   21.00%   21.00%    
Share Based Compensation [Member]            
Effective Income Tax Rate Reconciliation, Change in Enacted Tax Rate, Percent       1.00%    
Stahlgruber [Member]            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities $ 98,497     $ 98,497    
v3.10.0.1
Segment and Geographic Information (Tables)
6 Months Ended
Jun. 30, 2018
Segment Reporting [Abstract]  
Schedule Of Financial Performance By Reportable Segment
The following tables present our financial performance by reportable segment for the periods indicated (in thousands):
 
North America
 
Europe
 
Specialty
 
Eliminations
 
Consolidated
Three Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
1,334,965

 
$
1,284,153

 
$
411,633

 
$

 
$
3,030,751

Intersegment
201

 

 
1,240

 
(1,441
)
 

Total segment revenue
$
1,335,166

 
$
1,284,153

 
$
412,873

 
$
(1,441
)
 
$
3,030,751

Segment EBITDA
$
175,010

 
$
110,893

 
$
56,068

 
$

 
$
341,971

Depreciation and amortization (1)
21,606

 
39,801

 
7,031

 

 
68,438

Three Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
1,206,305

 
$
889,751

 
$
362,355

 
$

 
$
2,458,411

Intersegment
209

 

 
1,115

 
(1,324
)
 

Total segment revenue
$
1,206,514

 
$
889,751

 
$
363,470

 
$
(1,324
)
 
$
2,458,411

Segment EBITDA
$
173,732

 
$
83,549

 
$
48,578

 
$

 
$
305,859

Depreciation and amortization (1)
21,823

 
28,732

 
5,447

 

 
56,002


 
North America
 
Europe
 
Specialty
 
Eliminations
 
Consolidated
Six Months Ended June 30, 2018
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
2,664,625

 
$
2,324,583

 
$
762,307

 
$

 
$
5,751,515

Intersegment
384

 

 
2,358

 
(2,742
)
 

Total segment revenue
$
2,665,009

 
$
2,324,583

 
$
764,665

 
$
(2,742
)
 
$
5,751,515

Segment EBITDA
$
352,723

 
$
186,427

 
$
98,037

 
$

 
$
637,187

Depreciation and amortization (1)
42,834

 
72,558

 
14,112

 

 
129,504

Six Months Ended June 30, 2017
 
 
 
 
 
 
 
 
 
Revenue:
 
 
 
 
 
 
 
 
 
Third Party
$
2,414,352

 
$
1,710,648

 
$
676,254

 
$

 
$
4,801,254

Intersegment
402

 

 
2,150

 
(2,552
)
 

Total segment revenue
$
2,414,754

 
$
1,710,648

 
$
678,404

 
$
(2,552
)
 
$
4,801,254

Segment EBITDA
$
349,867

 
$
162,243

 
$
84,019

 
$

 
$
596,129

Depreciation and amortization (1)
42,201

 
53,483

 
10,922

 

 
106,606

(1)
Amounts presented include depreciation and amortization expense recorded within cost of goods sold.
Reconciliation Of Segment EBITDA To Net Income Table
The table below provides a reconciliation of Net Income to Segment EBITDA (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
2018
 
2017
 
2018
 
2017
Net income
$
157,866

 
$
150,914

 
$
310,629

 
$
287,192

Less: net income attributable to noncontrolling interest
859

 

 
662

 

Net income attributable to LKQ stockholders
157,007

 
150,914

 
309,967

 
287,192

Subtract:
 
 
 
 
 
 
 
Net loss from discontinued operations

 

 

 
(4,531
)
Net income from continuing operations attributable to LKQ stockholders
157,007

 
150,914

 
309,967

 
291,723

Add:
 
 
 
 
 
 
 
Depreciation and amortization
63,163

 
53,645

 
119,621

 
102,301

Depreciation and amortization - cost of goods sold
5,275

 
2,357

 
9,883

 
4,305

Interest expense, net
38,272

 
24,596

 
66,787

 
48,584

Provision for income taxes
60,775

 
75,862

 
110,359

 
148,017

EBITDA
324,492

 
307,374

 
616,617

 
594,930

Subtract:
 
 
 
 
 
 
 
Equity in earnings of unconsolidated subsidiaries
546

 
991

 
1,958

 
1,205

Gains on bargain purchases (1)
328

 
3,077

 
328

 
3,077

Add:
 
 
 
 
 
 
 
Restructuring and acquisition related expenses (2)
15,878

 
2,521

 
19,932

 
5,449

Inventory step-up adjustment - acquisition related

 

 
403

 

Impairment of net assets held for sale
2,438

 

 
2,438

 

Change in fair value of contingent consideration liabilities
37

 
32

 
83

 
32

Segment EBITDA
$
341,971

 
$
305,859

 
$
637,187

 
$
596,129


(1)
Reflects the gains on bargain purchases related to our acquisitions of a wholesale business in Europe and Andrew Page. See Note 2, "Business Combinations," for further information.
(2)
See Note 6, "Restructuring and Acquisition Related Expenses," for further information.
Schedule Of Capital Expenditures By Reportable Segment
The following table presents capital expenditures by reportable segment (in thousands):
 
Three Months Ended
 
Six Months Ended
June 30,
 
June 30,
2018
 
2017
 
2018
 
2017
Capital Expenditures
 
 
 
 
 
 
 
North America
$
29,206

 
$
22,153

 
$
58,868

 
$
38,913

Europe
16,863

 
22,676

 
45,678

 
43,134

Specialty
7,163

 
2,318

 
10,875

 
5,900

Discontinued operations

 

 

 
3,598

Total capital expenditures
$
53,232

 
$
47,147

 
$
115,421

 
$
91,545

Schedule Of Assets By Reportable Segment
The following table presents assets by reportable segment (in thousands):
 
June 30,
 
December 31,
2018
 
2017
Receivables, net
 
 
 
North America
$
443,651

 
$
379,666

Europe (1)
716,609

 
555,372

Specialty
141,254

 
92,068

Total receivables, net (2)
1,301,514

 
1,027,106

Inventories
 
 
 
North America
1,068,146

 
1,076,393

Europe (1)
1,296,608

 
964,068

Specialty
353,404

 
340,322

Total inventories
2,718,158

 
2,380,783

Property, Plant and Equipment, net
 
 
 
North America
548,981

 
537,286

Europe (1)
553,448

 
293,539

Specialty
86,035

 
82,264

Total property, plant and equipment, net
1,188,464

 
913,089

Equity Method Investments
 
 
 
North America
336

 
336

Europe 
202,317

 
208,068

Total equity method investments
202,653

 
208,404

Other unallocated assets
6,137,842

 
4,837,490

Total assets
$
11,548,631

 
$
9,366,872

Revenue from External Customers by Geographic Area
The following table sets forth our revenue by geographic area (in thousands):
 
Three Months Ended
 
Six Months Ended
 
June 30,
 
June 30,
 
2018
 
2017
 
2018
 
2017
Revenue
 
 
 
 
 
 
 
United States
$
1,621,343

 
$
1,456,065

 
$
3,181,370

 
$
2,873,105

United Kingdom
454,689

 
390,022

 
885,681

 
772,674

Other countries
954,719

 
612,324

 
1,684,464

 
1,155,475

Total revenue
$
3,030,751

 
$
2,458,411

 
$
5,751,515

 
$
4,801,254

Schedule Of Tangible Long-Lived Assets By Geographic Area
The following table sets forth our tangible long-lived assets by geographic area (in thousands):
 
June 30,
 
December 31,
 
2018
 
2017
Long-lived Assets
 
 
 
United States
$
599,515

 
$
583,236

Germany
212,133

 
41

United Kingdom
175,782

 
178,021

Other countries
201,034

 
151,791

Total long-lived assets
$
1,188,464

 
$
913,089

v3.10.0.1
Condensed Consolidating Financial Information (Tables)
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2018
Condensed Consolidating Financial Information [Abstract]    
Consolidated Condensed Statements of Income
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
 
For the Three Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
1,640,396

 
$
1,426,650

 
$
(36,295
)
 
$
3,030,751

Cost of goods sold

 
988,671

 
916,496

 
(36,295
)
 
1,868,872

Gross margin

 
651,725

 
510,154

 

 
1,161,879

Selling, general and administrative expenses
9,683

 
430,693

 
385,668

 

 
826,044

Restructuring and acquisition related expenses

 

 
15,878

 

 
15,878

Depreciation and amortization
21

 
24,526

 
38,616

 

 
63,163

Operating (loss) income
(9,704
)
 
196,506

 
69,992

 

 
256,794

Other expense (income):
 
 
 
 
 
 
 
 
 
Interest expense (income), net
17,805

 
(113
)
 
20,580

 

 
38,272

Intercompany interest (income) expense, net
(15,406
)
 
9,865

 
5,541

 

 

Gains on bargain purchases

 

 
(328
)
 

 
(328
)
Other expense (income), net
117

 
(4,397
)
 
5,035

 

 
755

Total other expense, net
2,516

 
5,355

 
30,828

 

 
38,699

(Loss) income before (benefit) provision for income taxes
(12,220
)
 
191,151

 
39,164

 

 
218,095

(Benefit) provision for income taxes
(3,744
)
 
53,543

 
10,976

 

 
60,775

Equity in earnings of unconsolidated subsidiaries

 

 
546

 

 
546

Equity in earnings of subsidiaries
165,483

 
4,451

 

 
(169,934
)
 

Net income
157,007

 
142,059

 
28,734

 
(169,934
)
 
157,866

Less: net income attributable to noncontrolling interest

 

 
859

 

 
859

Net income attributable to LKQ stockholders
$
157,007


$
142,059


$
27,875


$
(169,934
)

$
157,007


LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
 
For the Three Months Ended June 30, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
1,487,435

 
$
1,001,733

 
$
(30,757
)
 
$
2,458,411

Cost of goods sold

 
889,087

 
635,072

 
(30,757
)
 
1,493,402

Gross margin

 
598,348

 
366,661

 

 
965,009

Selling, general and administrative expenses
9,165

 
385,443

 
269,662

 

 
664,270

Restructuring and acquisition related expenses

 
654

 
1,867

 

 
2,521

Depreciation and amortization
30

 
24,586

 
29,029

 

 
53,645

Operating (loss) income
(9,195
)
 
187,665

 
66,103

 

 
244,573

Other expense (income):
 
 
 
 
 
 
 
 
 
Interest expense, net
16,492

 
26

 
8,078

 

 
24,596

Intercompany interest (income) expense, net
(2,160
)
 
(2,735
)
 
4,895

 

 

Gain on bargain purchase

 

 
(3,077
)
 

 
(3,077
)
Other (income) expense, net
(37
)
 
(4,067
)
 
1,373

 

 
(2,731
)
Total other expense (income), net
14,295

 
(6,776
)
 
11,269

 

 
18,788

(Loss) income from continuing operations before (benefit) provision for income taxes
(23,490
)
 
194,441

 
54,834

 

 
225,785

(Benefit) provision for income taxes
(11,161
)
 
73,363

 
13,660

 

 
75,862

Equity in earnings of unconsolidated subsidiaries
182

 

 
809

 

 
991

Equity in earnings of subsidiaries
163,061

 
5,795

 

 
(168,856
)
 

Net income
$
150,914

 
$
126,873

 
$
41,983

 
$
(168,856
)
 
$
150,914

LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
 
For the Six Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
3,217,991

 
$
2,606,892

 
$
(73,368
)
 
$
5,751,515

Cost of goods sold

 
1,934,586

 
1,674,447

 
(73,368
)
 
3,535,665

Gross margin

 
1,283,405

 
932,445

 

 
2,215,850

Selling, general and administrative expenses
18,813

 
857,490

 
716,632

 

 
1,592,935

Restructuring and acquisition related expenses

 
330

 
19,602

 

 
19,932

Depreciation and amortization
50

 
48,864

 
70,707

 

 
119,621

Operating (loss) income
(18,863
)
 
376,721

 
125,504

 

 
483,362

Other expense (income):
 
 
 
 
 
 
 
 
 
Interest expense, net
35,813

 
99

 
30,875

 

 
66,787

Intercompany interest (income) expense, net
(30,806
)
 
19,545

 
11,261

 

 

Gains on bargain purchases

 

 
(328
)
 

 
(328
)
Other (income) expense, net
(898
)
 
(10,279
)
 
9,050

 

 
(2,127
)
Total other expense, net
4,109

 
9,365

 
50,858

 

 
64,332

(Loss) income before (benefit) provision for income taxes
(22,972
)
 
367,356

 
74,646

 

 
419,030

(Benefit) provision for income taxes
(7,648
)
 
99,420

 
18,587

 

 
110,359

Equity in earnings of unconsolidated subsidiaries

 

 
1,958

 

 
1,958

Equity in earnings of subsidiaries
325,291

 
9,561

 

 
(334,852
)
 

Net income
309,967

 
277,497

 
58,017

 
(334,852
)
 
310,629

Less: net income attributable to noncontrolling interest

 

 
662

 

 
662

Net income attributable to LKQ stockholders
$
309,967

 
$
277,497

 
$
57,355

 
$
(334,852
)
 
$
309,967


LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
 
For the Six Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
3,217,991

 
$
2,606,892

 
$
(73,368
)
 
$
5,751,515

Cost of goods sold

 
1,934,586

 
1,674,447

 
(73,368
)
 
3,535,665

Gross margin

 
1,283,405

 
932,445

 

 
2,215,850

Selling, general and administrative expenses
18,813

 
857,490

 
716,632

 

 
1,592,935

Restructuring and acquisition related expenses

 
330

 
19,602

 

 
19,932

Depreciation and amortization
50

 
48,864

 
70,707

 

 
119,621

Operating (loss) income
(18,863
)
 
376,721

 
125,504

 

 
483,362

Other expense (income):
 
 
 
 
 
 
 
 
 
Interest expense, net
35,813

 
99

 
30,875

 

 
66,787

Intercompany interest (income) expense, net
(30,806
)
 
19,545

 
11,261

 

 

Gains on bargain purchases

 

 
(328
)
 

 
(328
)
Other (income) expense, net
(898
)
 
(10,279
)
 
9,050

 

 
(2,127
)
Total other expense, net
4,109

 
9,365

 
50,858

 

 
64,332

(Loss) income before (benefit) provision for income taxes
(22,972
)
 
367,356

 
74,646

 

 
419,030

(Benefit) provision for income taxes
(7,648
)
 
99,420

 
18,587

 

 
110,359

Equity in earnings of unconsolidated subsidiaries

 

 
1,958

 

 
1,958

Equity in earnings of subsidiaries
325,291

 
9,561

 

 
(334,852
)
 

Net income
309,967

 
277,497

 
58,017

 
(334,852
)
 
310,629

Less: net income attributable to noncontrolling interest

 

 
662

 

 
662

Net income attributable to LKQ stockholders
$
309,967

 
$
277,497

 
$
57,355

 
$
(334,852
)
 
$
309,967


LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
 
For the Six Months Ended June 30, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Revenue
$

 
$
2,940,951

 
$
1,931,704

 
$
(71,401
)
 
$
4,801,254

Cost of goods sold

 
1,752,462

 
1,225,091

 
(71,401
)
 
2,906,152

     Gross margin

 
1,188,489

 
706,613

 

 
1,895,102

Selling, general and administrative expenses
18,348

 
770,971

 
517,768

 

 
1,307,087

Restructuring and acquisition related expenses

 
2,537

 
2,912

 

 
5,449

Depreciation and amortization
60

 
48,067

 
54,174

 

 
102,301

Operating (loss) income
(18,408
)
 
366,914

 
131,759

 

 
480,265

Other expense (income):
 
 
 
 
 
 
 
 
 
Interest expense, net
32,672

 
224

 
15,688

 

 
48,584

Intercompany interest (income) expense, net
(7,832
)
 
(1,716
)
 
9,548

 

 

Gains on bargain purchases

 

 
(3,077
)
 

 
(3,077
)
Other expense (income), net
254

 
(4,236
)
 
205

 

 
(3,777
)
Total other expense (income), net
25,094

 
(5,728
)
 
22,364

 

 
41,730

(Loss) income from continuing operations before (benefit) provision for income taxes
(43,502
)
 
372,642

 
109,395

 

 
438,535

(Benefit) provision for income taxes
(18,598
)
 
143,401

 
23,214

 

 
148,017

Equity in earnings of unconsolidated subsidiaries

 

 
1,205

 

 
1,205

Equity in earnings of subsidiaries
316,627

 
10,608

 

 
(327,235
)
 

Income from continuing operations
291,723

 
239,849

 
87,386

 
(327,235
)
 
291,723

Net (loss) income from discontinued operations
(4,531
)
 
(4,531
)
 
2,050

 
2,481

 
(4,531
)
Net income
$
287,192

 
$
235,318

 
$
89,436

 
$
(324,754
)
 
$
287,192

Consolidated Condensed Statements of Comprehensive Income (Loss)
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
 
For the Three Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net income
$
157,007

 
$
142,059

 
$
28,734

 
$
(169,934
)
 
$
157,866

Less: net income attributable to noncontrolling interest

 

 
859

 

 
859

Net income attributable to LKQ stockholders
157,007

 
142,059

 
27,875

 
(169,934
)
 
157,007

 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
Foreign currency translation, net of tax
(105,164
)
 
(2,303
)
 
(106,610
)
 
108,913

 
(105,164
)
Net change in unrealized gains/losses on cash flow hedges, net of tax
2,406

 

 

 

 
2,406

Net change in unrealized gains/losses on pension plans, net of tax
(807
)
 
(864
)
 
57

 
807

 
(807
)
Net change in other comprehensive income from unconsolidated subsidiaries
2,122

 

 
2,122

 
(2,122
)
 
2,122

Other comprehensive loss
(101,443
)
 
(3,167
)
 
(104,431
)
 
107,598

 
(101,443
)
 
 
 
 
 
 
 
 
 
 
Comprehensive income (loss)
55,564

 
138,892

 
(75,697
)
 
(62,336
)
 
56,423

Less: comprehensive income attributable to noncontrolling interest

 

 
859

 

 
859

Comprehensive income (loss) attributable to LKQ stockholders
$
55,564

 
$
138,892

 
$
(76,556
)
 
$
(62,336
)
 
$
55,564





LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
 
For the Three Months Ended June 30, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net income
$
150,914

 
$
126,873

 
$
41,983

 
$
(168,856
)
 
$
150,914

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
 
Foreign currency translation, net of tax
93,597

 
10,097

 
92,903

 
(103,000
)
 
93,597

Net change in unrecognized gains/losses on cash flow hedges, net of tax
(930
)
 

 

 

 
(930
)
Net change in unrealized gains/losses on pension plans, net of tax
(862
)
 
(448
)
 
(414
)
 
862

 
(862
)
Net change in other comprehensive loss from unconsolidated subsidiaries
(439
)
 

 
(439
)
 
439

 
(439
)
Total other comprehensive income
91,366

 
9,649

 
92,050

 
(101,699
)
 
91,366

Total comprehensive income
$
242,280

 
$
136,522

 
$
134,033

 
$
(270,555
)
 
$
242,280


LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
 
For the Six Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net income
$
309,967

 
$
277,497

 
$
58,017

 
$
(334,852
)
 
$
310,629

Less: net income attributable to noncontrolling interest

 

 
662

 

 
662

Net income attributable to LKQ stockholders
309,967

 
277,497

 
57,355

 
(334,852
)
 
309,967

 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
Foreign currency translation, net of tax
(56,679
)
 
(4,486
)
 
(57,555
)
 
62,041

 
(56,679
)
Net change in unrealized gains/losses on cash flow hedges, net of tax
5,660

 

 

 

 
5,660

Net change in unrealized gains/losses on pension plans, net of tax
(1,428
)
 
(1,485
)
 
57

 
1,428

 
(1,428
)
Net change in other comprehensive income from unconsolidated subsidiaries
1,517

 

 
1,517

 
(1,517
)
 
1,517

Other comprehensive loss
(50,930
)
 
(5,971
)
 
(55,981
)
 
61,952

 
(50,930
)
 
 
 
 
 
 
 
 
 
 
Comprehensive income
259,037

 
271,526

 
2,036

 
(272,900
)
 
259,699

Less: comprehensive income attributable to noncontrolling interest

 

 
662

 

 
662

Comprehensive income attributable to LKQ stockholders
$
259,037

 
$
271,526

 
$
1,374

 
$
(272,900
)
 
$
259,037


LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
 
For the Six Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net income
$
309,967

 
$
277,497

 
$
58,017

 
$
(334,852
)
 
$
310,629

Less: net income attributable to noncontrolling interest

 

 
662

 

 
662

Net income attributable to LKQ stockholders
309,967

 
277,497

 
57,355

 
(334,852
)
 
309,967

 
 
 
 
 
 
 
 
 
 
Other comprehensive (loss) income:
 
 
 
 
 
 
 
 
 
Foreign currency translation, net of tax
(56,679
)
 
(4,486
)
 
(57,555
)
 
62,041

 
(56,679
)
Net change in unrealized gains/losses on cash flow hedges, net of tax
5,660

 

 

 

 
5,660

Net change in unrealized gains/losses on pension plans, net of tax
(1,428
)
 
(1,485
)
 
57

 
1,428

 
(1,428
)
Net change in other comprehensive income from unconsolidated subsidiaries
1,517

 

 
1,517

 
(1,517
)
 
1,517

Other comprehensive loss
(50,930
)
 
(5,971
)
 
(55,981
)
 
61,952

 
(50,930
)
 
 
 
 
 
 
 
 
 
 
Comprehensive income
259,037

 
271,526

 
2,036

 
(272,900
)
 
259,699

Less: comprehensive income attributable to noncontrolling interest

 

 
662

 

 
662

Comprehensive income attributable to LKQ stockholders
$
259,037

 
$
271,526

 
$
1,374

 
$
(272,900
)
 
$
259,037





LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
 
For the Six Months Ended June 30, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Net income
$
287,192

 
$
235,318

 
$
89,436

 
$
(324,754
)
 
$
287,192

Other comprehensive income (loss):
 
 
 
 
 
 
 
 

Foreign currency translation, net of tax
115,176

 
13,975

 
114,035

 
(128,010
)
 
115,176

Net change in unrecognized gains/losses on cash flow hedges, net of tax
2,233

 
(133
)
 

 
133

 
2,233

Net change in unrealized gains/losses on pension plans, net of tax
(3,903
)
 
(3,253
)
 
(650
)
 
3,903

 
(3,903
)
Net change in other comprehensive loss from unconsolidated subsidiaries
(601
)
 

 
(601
)
 
601

 
(601
)
Total other comprehensive income
112,905

 
10,589

 
112,784

 
(123,373
)
 
112,905

Total comprehensive income
$
400,097

 
$
245,907

 
$
202,220

 
$
(448,127
)
 
$
400,097

Consolidated Condensed Balance Sheets  
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Balance Sheets
(In thousands)
 
June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
33,859

 
$
38,302

 
$
273,041

 
$

 
$
345,202

Receivables, net
65

 
380,076

 
921,373

 

 
1,301,514

Intercompany receivables, net
6,946

 

 
28,589

 
(35,535
)
 

Inventories

 
1,337,934

 
1,380,224

 

 
2,718,158

Prepaid expenses and other current assets
32,457

 
95,198

 
101,077

 

 
228,732

Total current assets
73,327

 
1,851,510

 
2,704,304

 
(35,535
)
 
4,593,606

Property, plant and equipment, net
979

 
578,952

 
608,533

 

 
1,188,464

Intangible assets:
 
 
 
 
 
 
 
 
 
Goodwill

 
2,005,253

 
2,416,723

 

 
4,421,976

Other intangibles, net

 
284,460

 
688,571

 

 
973,031

Investment in subsidiaries
5,573,396

 
108,485

 

 
(5,681,881
)
 

Intercompany notes receivable
1,094,619

 
26,716

 

 
(1,121,335
)
 

Equity method investments

 
336

 
202,317

 

 
202,653

Other assets
86,030

 
37,286

 
45,585

 

 
168,901

Total assets
$
6,828,351

 
$
4,892,998

 
$
6,666,033

 
$
(6,838,751
)
 
$
11,548,631

Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
15,084

 
$
342,529

 
$
624,030

 
$

 
$
981,643

Intercompany payables, net

 
28,589

 
6,946

 
(35,535
)
 

Accrued expenses:
 
 
 
 
 
 
 
 
 
Accrued payroll-related liabilities
6,143

 
57,909

 
99,242

 

 
163,294

Other accrued expenses
6,163

 
99,766

 
206,773

 

 
312,702

Refund liability

 
53,660

 
50,034

 

 
103,694

Other current liabilities
282

 
19,050

 
30,271

 

 
49,603

Current portion of long-term obligations
24,886

 
1,561

 
150,925

 

 
177,372

Total current liabilities
52,558

 
603,064

 
1,168,221

 
(35,535
)
 
1,788,308

Long-term obligations, excluding current portion
1,891,254

 
8,012

 
2,361,910

 

 
4,261,176

Intercompany notes payable

 
637,495

 
483,840

 
(1,121,335
)
 

Deferred income taxes
12,251

 
115,736

 
204,615

 

 
332,602

Other noncurrent liabilities
152,816

 
106,007

 
130,747

 

 
389,570

Stockholders' equity:
 
 
 
 
 
 
 
 
 
Total Company stockholders’ equity
4,719,472

 
3,422,684

 
2,259,197

 
(5,681,881
)
 
4,719,472

Noncontrolling interest

 

 
57,503

 

 
57,503

Total stockholders’ equity
4,719,472

 
3,422,684

 
2,316,700

 
(5,681,881
)
 
4,776,975

Total liabilities and stockholders' equity
$
6,828,351

 
$
4,892,998

 
$
6,666,033

 
$
(6,838,751
)
 
$
11,548,631



LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Balance Sheets
(In thousands)
 
December 31, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
34,360

 
$
35,131

 
$
210,275

 
$

 
$
279,766

Receivables, net

 
290,958

 
736,148

 

 
1,027,106

Intercompany receivables, net
2,669

 
3,010

 
230

 
(5,909
)
 

Inventories

 
1,334,766

 
1,046,017

 

 
2,380,783

Prepaid expenses and other current assets
34,136

 
44,849

 
55,494

 

 
134,479

Total current assets
71,165

 
1,708,714

 
2,048,164

 
(5,909
)
 
3,822,134

Property, plant and equipment, net
910

 
563,262

 
348,917

 

 
913,089

Intangible assets:
 
 
 
 
 
 
 
 
 
Goodwill

 
2,010,209

 
1,526,302

 

 
3,536,511

Other intangibles, net

 
291,036

 
452,733

 

 
743,769

Investment in subsidiaries
5,952,687

 
102,931

 

 
(6,055,618
)
 

Intercompany notes receivable
1,156,550

 
782,638

 

 
(1,939,188
)
 

Equity method investments

 
336

 
208,068

 

 
208,404

Other assets
70,590

 
33,597

 
38,778

 

 
142,965

Total assets
$
7,251,902

 
$
5,492,723

 
$
4,622,962

 
$
(8,000,715
)
 
$
9,366,872

Liabilities and Stockholders’ Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Accounts payable
$
5,742

 
$
340,951

 
$
441,920

 
$

 
$
788,613

Intercompany payables, net

 
230

 
5,679

 
(5,909
)
 

Accrued expenses:
 
 
 
 
 
 
 
 
 
Accrued payroll-related liabilities
9,448

 
65,811

 
68,165

 

 
143,424

Other accrued expenses
5,219

 
95,900

 
117,481

 

 
218,600

Other current liabilities
282

 
27,066

 
18,379

 

 
45,727

Current portion of long-term obligations
16,468

 
1,912

 
107,980

 

 
126,360

Total current liabilities
37,159

 
531,870

 
759,604

 
(5,909
)
 
1,322,724

Long-term obligations, excluding current portion
2,095,826

 
7,372

 
1,174,422

 

 
3,277,620

Intercompany notes payable
750,000

 
677,708

 
511,480

 
(1,939,188
)
 

Deferred income taxes
12,402

 
116,021

 
123,936

 

 
252,359

Other noncurrent liabilities
158,346

 
101,189

 
47,981

 

 
307,516

Stockholders' equity:
 
 
 
 
 
 
 
 
 
Total Company stockholders’ equity
4,198,169

 
4,058,563

 
1,997,055

 
(6,055,618
)
 
4,198,169

Noncontrolling interest

 

 
8,484

 

 
8,484

Total stockholders’ equity
4,198,169

 
4,058,563

 
2,005,539

 
(6,055,618
)
 
4,206,653

Total liabilities and stockholders' equity
$
7,251,902

 
$
5,492,723

 
$
4,622,962

 
$
(8,000,715
)
 
$
9,366,872

Consolidated Condensed Statements of Cash Flows  
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Cash Flows
(In thousands)
 
For the Six Months Ended June 30, 2017
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
156,127

 
$
284,227

 
$
114,476

 
$
(192,733
)
 
$
362,097

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(64
)
 
(41,718
)
 
(49,763
)
 

 
(91,545
)
Investment and intercompany note activity with subsidiaries
276,377

 

 

 
(276,377
)
 

Acquisitions, net of cash acquired

 
(78,121
)
 
(22,607
)
 

 
(100,728
)
Proceeds from disposals of business/investment

 
305,740

 
(4,443
)
 

 
301,297

Payments of deferred purchase price on receivables securitization (1)

 
6,362

 

 
(6,362
)
 

Other investing activities, net

 
(395
)
 
5,107

 

 
4,712

Net cash provided by (used in) investing activities
276,313

 
191,868

 
(71,706
)
 
(282,739
)
 
113,736

CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Proceeds from exercise of stock options
5,151

 

 

 

 
5,151

Taxes paid related to net share settlements of stock-based compensation awards
(3,955
)
 

 

 

 
(3,955
)
Borrowings under revolving credit facilities
97,000

 

 
65,794

 

 
162,794

Repayments under revolving credit facilities
(515,931
)
 

 
(69,523
)
 

 
(585,454
)
Repayments under term loans
(18,590
)
 

 

 

 
(18,590
)
Borrowings under receivables securitization facility

 

 
150

 

 
150

Repayments under receivables securitization facility

 

 
(5,000
)
 

 
(5,000
)
(Repayments) borrowings of other debt, net
(1,700
)
 
(1,161
)
 
22,452

 

 
19,591

Payments of other obligations

 
(1,336
)
 
(743
)
 

 
(2,079
)
Other financing activities, net

 
5,000

 
(684
)
 

 
4,316

Investment and intercompany note activity with parent

 
(269,668
)
 
(6,709
)
 
276,377

 

Dividends

 
(199,095
)
 

 
199,095

 

Net cash (used in) provided by financing activities
(438,025
)
 
(466,260
)
 
5,737

 
475,472

 
(423,076
)
Effect of exchange rate changes on cash and cash equivalents

 
521

 
15,750

 

 
16,271

Net (decrease) increase in cash and cash equivalents
(5,585
)
 
10,356

 
64,257

 

 
69,028

Cash and cash equivalents of continuing operations, beginning of period
33,030

 
35,360

 
159,010

 

 
227,400

Add: Cash and cash equivalents of discontinued operations, beginning of period

 
149

 
6,967

 

 
7,116

Cash and cash equivalents of continuing and discontinued operations, beginning of period
33,030

 
35,509

 
165,977

 
$

 
234,516

Cash and cash equivalents, end of period
$
27,445

 
$
45,865

 
$
230,234

 
$

 
$
303,544


LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Cash Flows
(In thousands)
 
For the Six Months Ended June 30, 2018
 
Parent
 
Guarantors
 
Non-Guarantors
 
Eliminations
 
Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Net cash provided by operating activities
$
149,253

 
$
244,304

 
$
68,285

 
$
(133,173
)
 
$
328,669

CASH FLOWS FROM INVESTING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Purchases of property, plant and equipment
(260
)
 
(62,744
)
 
(52,417
)
 

 
(115,421
)
Investment and intercompany note activity with subsidiaries
48,339

 

 

 
(48,339
)
 

Acquisitions, net of cash acquired

 
(2,527
)
 
(1,133,443
)
 

 
(1,135,970
)
Payments of deferred purchase price on receivables securitization

 
14,926

 

 
(14,926
)
 

Other investing activities, net
887

 
423

 
864

 

 
2,174

Net cash provided by (used in) investing activities
48,966

 
(49,922
)
 
(1,184,996
)
 
(63,265
)
 
(1,249,217
)
CASH FLOWS FROM FINANCING ACTIVITIES:
 
 
 
 
 
 
 
 
 
Proceeds from exercise of stock options
2,922

 

 

 

 
2,922

Taxes paid related to net share settlements of stock-based compensation awards
(3,834
)
 

 

 

 
(3,834
)
Debt issuance costs
(682
)
 

 
(16,077
)
 

 
(16,759
)
Proceeds from issuance of Euro Notes (2026/28)

 

 
1,232,100

 

 
1,232,100

Borrowings under revolving credit facilities
264,000

 

 
349,658

 

 
613,658

Repayments under revolving credit facilities
(451,931
)
 

 
(314,666
)
 

 
(766,597
)
Repayments under term loans
(8,810
)
 

 

 

 
(8,810
)
(Repayments) borrowings of other debt, net
(385
)
 
289

 
(2,348
)
 

 
(2,444
)
Other financing activities, net

 

 
4,107

 

 
4,107

Investment and intercompany note activity with parent

 
(42,596
)
 
(5,743
)
 
48,339

 

Dividends

 
(148,099
)
 

 
148,099

 

Net cash (used in) provided by financing activities
(198,720
)
 
(190,406
)
 
1,247,031

 
196,438

 
1,054,343

Effect of exchange rate changes on cash and cash equivalents

 
(805
)
 
(67,554
)
 

 
(68,359
)
Net (decrease) increase in cash and cash equivalents
(501
)
 
3,171

 
62,766

 

 
65,436

Cash and cash equivalents, beginning of period
34,360

 
35,131

 
210,275

 

 
279,766

Cash and cash equivalents, end of period
$
33,859

 
$
38,302

 
$
273,041

 
$

 
$
345,202

v3.10.0.1
Business Combinations - Additional Information (Details)
$ in Thousands, € in Millions
1 Months Ended 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
USD ($)
Nov. 30, 2017
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
shares
Jun. 30, 2018
EUR (€)
shares
Jun. 30, 2017
USD ($)
Dec. 31, 2017
USD ($)
Jun. 30, 2018
EUR (€)
Apr. 09, 2018
USD ($)
Apr. 09, 2018
EUR (€)
Business Acquisition                      
Cash used in acquisitions, net of cash acquired         $ 1,135,970   $ 100,728 $ 513,088      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities $ 571   $ 571   571     $ 20,187      
Revenue     3,030,751 $ 2,458,411 5,751,515   4,801,254        
Operating Income (Loss)     256,794 244,573 483,362   480,265        
Number of acquisitions               26      
Contingent consideration liabilities (34)   $ (34)   $ (34)     $ (6,234)      
Warn Industries [Member]                      
Business Acquisition                      
Business Acquisition, Effective Date of Acquisition   Nov. 30, 2017                  
Stahlgruber [Member]                      
Business Acquisition                      
Business Acquisition, Effective Date of Acquisition     May 30, 2018                
Business Acquisition, Name of Acquired Entity         Stahlgruber GmbH Stahlgruber GmbH          
Total acquisition date fair value of the consideration for acquisitions         $ 1,400,000 € 1,200          
Cash used in acquisitions, net of cash acquired         1,127,442 € 1,000          
Business Acquisition, Equity Interest Issued or Issuable, Value Assigned 251,000   $ 251,000   251,000       € 215    
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities 0   0   $ 0            
Debt Instrument, Face Amount                   $ 1,200,000 € 1,000
Business Acquisition, Equity Interest Issued or Issuable, Number of Shares | shares         8,055,569 8,055,569          
Business Acquisition, Goodwill, Expected Tax Deductible Amount 240,000   240,000   $ 240,000            
Revenue 168,000                    
Operating Income (Loss) 6,000                    
Goodwill, Acquired During Period         931,000            
Contingent consideration liabilities 0   0   0            
Other Than Stahlgruber [Member]                      
Business Acquisition                      
Total acquisition date fair value of the consideration for acquisitions         7,000            
Cash used in acquisitions, net of cash acquired         6,000            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities 1,000   1,000   1,000            
Revenue         4,000            
Operating Income (Loss)         1,000            
Goodwill, Acquired During Period         $ 3,000            
Wholesale - NA [Member]                      
Business Acquisition                      
Number of acquisitions         1 1   6      
Wholesale Europe [Member]                      
Business Acquisition                      
Number of acquisitions         4 4   16      
All 2017 acquisitions [Member]                      
Business Acquisition                      
Total acquisition date fair value of the consideration for acquisitions               $ 542,000      
Cash used in acquisitions, net of cash acquired               510,000      
Business Acquisition, Goodwill, Expected Tax Deductible Amount               21,000      
Goodwill, Acquired During Period               $ 307,000      
Specialty                      
Business Acquisition                      
Number of acquisitions               4      
Aftermarket Parts Distribution Businesses In Europe [Member]                      
Business Acquisition                      
Number of acquisitions               4      
Euro Notes 2026/28 [Member]                      
Business Acquisition                      
Debt Instrument, Face Amount $ 1,168,400   1,168,400   $ 1,168,400            
Payment To Former Owners [Member]                      
Business Acquisition                      
Contingent consideration liabilities               $ (6,234)      
Payment To Former Owners [Member] | Maximum | All 2017 acquisitions [Member]                      
Business Acquisition                      
Contingent consideration liabilities               (19,000)      
Non-interest Bearing [Member] | 2017 acquisitions and adjustments to 2016 acquisitions [Member]                      
Business Acquisition                      
Contingent consideration liabilities               (5,000)      
Notes Payable, Other Payables [Member] | 2017 acquisitions and adjustments to 2016 acquisitions [Member]                      
Business Acquisition                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Liabilities               $ 20,000      
Specialty                      
Business Acquisition                      
Revenue     $ 412,873 $ 363,470 $ 764,665   $ 678,404        
v3.10.0.1
Purchase Price Allocations for Acquisitions (Details)
$ in Thousands, € in Millions
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2018
EUR (€)
Jun. 30, 2017
USD ($)
Dec. 31, 2017
USD ($)
Business Acquisition            
Receivables $ 147,061   $ 147,061     $ 73,782
Receivable reserves (3,481)   (3,481)     (7,032)
Inventories (3) 356,221   356,221     150,342
Prepaid expenses and other current assets 7,315   7,315     (295)
Property, plant and equipment 262,684   262,684     41,039
Goodwill 4,421,976   4,421,976     3,536,511
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net           314,817
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill 285,533   285,533     181,216
Other assets 16,890   16,890     3,257
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities 100,102   100,102     65,087
Current liabilities assumed (322,090)   (322,090)     (111,484)
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt (65,852)   (65,852)     (33,586)
Other noncurrent liabilities assumed (83,637)   (83,637)     (1,917)
Consolidation, Less Than Wholly Owned Subsidiary, Non Controlling Interest Acquired, Value     (44,250)     0
Contingent consideration liabilities (34)   (34)     (6,234)
Other purchase price obligations 963   963     (5,074)
Stock Issued During Period, Value, Acquisitions     (251,334)     0
Notes issued (571)   (571)     (20,187)
Settlement of pre-existing balances 0   0     242
Gains on bargain purchases (328) $ (3,077) (328)   $ (3,077) (3,870)
Settlement of other purchase price obligations (non-interest bearing)     1,091     3,159
Cash used in acquisitions, net of cash acquired     1,135,970   $ 100,728 513,088
Warn Industries [Member]            
Business Acquisition            
Increase (Decrease) in Intangible Assets, Current     5,000      
Inventory step-up adjustment - acquisition related           4,000
2017 Acquisitions Excluding Warn [Member]            
Business Acquisition            
Business Acquisition Cost Of Acquired Entity Other Purchase Price Obligations Non Interest Bearing, Post Purchase Adjustment     (4,000)      
Stahlgruber [Member]            
Business Acquisition            
Receivables 143,785   143,785      
Receivable reserves (2,818)   (2,818)      
Inventories (3) 352,053   352,053      
Prepaid expenses and other current assets 7,287   7,287      
Property, plant and equipment 260,638   260,638      
Goodwill 930,567   930,567      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill 280,399   280,399      
Other assets 16,625   16,625      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities 98,497   98,497      
Current liabilities assumed (315,175)   (315,175)      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt (65,852)   (65,852)      
Other noncurrent liabilities assumed (83,637)   (83,637)      
Consolidation, Less Than Wholly Owned Subsidiary, Non Controlling Interest Acquired, Value     (44,250)      
Contingent consideration liabilities 0   0      
Other purchase price obligations (2,349)   (2,349)      
Stock Issued During Period, Value, Acquisitions     251,334      
Notes issued 0   0      
Settlement of pre-existing balances 0   0      
Gains on bargain purchases     0      
Settlement of other purchase price obligations (non-interest bearing)     0      
Cash used in acquisitions, net of cash acquired     1,127,442 € 1,000    
Defined Benefit Plan, Benefit Obligation, Business Combination     75,000      
All 2018 Acquisitions and adjustments to 2017 acquisitions excluding Stahlgruber            
Business Acquisition            
Receivables 3,276   3,276      
Receivable reserves (663)   (663)      
Inventories (3) 4,168   4,168      
Prepaid expenses and other current assets 28   28      
Property, plant and equipment 2,046   2,046      
Goodwill (676)   (676)      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Intangible Assets, Other than Goodwill 5,134   5,134      
Other assets 265   265      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deferred Tax Liabilities 1,605   1,605      
Current liabilities assumed (6,915)   (6,915)      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Noncurrent Liabilities, Long-term Debt 0   0      
Other noncurrent liabilities assumed 0   0      
Consolidation, Less Than Wholly Owned Subsidiary, Non Controlling Interest Acquired, Value     0      
Contingent consideration liabilities (34)   (34)      
Other purchase price obligations 3,312   3,312      
Stock Issued During Period, Value, Acquisitions     0      
Notes issued (571)   (571)      
Settlement of pre-existing balances 0   0      
Gains on bargain purchases     (328)      
Settlement of other purchase price obligations (non-interest bearing)     1,091      
Cash used in acquisitions, net of cash acquired     8,528      
All 2018 and 2017 Acquisitions [Member]            
Business Acquisition            
Goodwill $ 929,891   $ 929,891      
Rhiag [Member]            
Business Acquisition            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment           6,000
PGW [Member]            
Business Acquisition            
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Property, Plant, and Equipment           3,000
Andrew Page [Member]            
Business Acquisition            
Gain on bargain purchase           $ (2,000)
v3.10.0.1
Pro Forma Effect of Businesses Acquired (Details) - USD ($)
$ / shares in Units, $ in Thousands
1 Months Ended 3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Business Acquisition          
Revenue, as reported   $ 3,030,751 $ 2,458,411 $ 5,751,515 $ 4,801,254
Income from continuing operations   $ 157,866 $ 150,914 $ 310,629 $ 291,723
Basic earnings per share from continuing operations   $ 0.51 $ 0.49 $ 1.00 $ 0.95
Diluted earnings per share from continuing operations   0.50 0.49 0.99 $ 0.94
All 2018 Acquisitions [Member]          
Business Acquisition          
Business Acquisition Pro Forma Income Loss From Share Issuance, Per Basic Share Effect   (0.01)   (0.02)  
Business Acquisition Pro Forma Income Loss From Share Issuance, Per Diluted Share Effect   $ (0.01)   $ (0.02)  
Stahlgruber [Member]          
Business Acquisition          
Revenue, as reported $ 168,000        
All 2018 and 2017 Acquisitions [Member]          
Business Acquisition          
Business Acquisition Pro Forma Income Loss From Share Issuance, Per Basic Share Effect     (0.01)    
Business Acquisition Pro Forma Income Loss From Share Issuance, Per Diluted Share Effect     $ (0.01)    
All 2017 acquisitions [Member]          
Business Acquisition          
Acquisition Related Costs, Net of Tax   $ 11,744 $ 1,465 $ 13,305 $ 2,709
Business Acquisition Pro Forma Income Loss From Acquisition Related Costs, Net of Tax, Per Basic Share Effect   $ 0.04 $ 0.00 $ 0.04 $ 0.01
Business Acquisition Pro Forma Income Loss From Share Issuance, Per Basic Share Effect         (0.02)
Business Acquisition Pro Forma Income Loss From Acquisition Related Costs, Net of Tax, Per Diluted Share Effect   $ 0.04 $ 0.00 $ 0.04 0.01
Business Acquisition Pro Forma Income Loss From Share Issuance, Per Diluted Share Effect         $ (0.02)
Pro Forma [Member]          
Business Acquisition          
Revenue, as reported   $ 3,369,756 $ 3,018,427 $ 6,575,764 $ 5,886,359
Income from continuing operations   $ 179,543 $ 158,713 $ 326,807 $ 300,690
Basic earnings per share from continuing operations   $ 0.56 $ 0.50 $ 1.03 $ 0.95
Pro forma earnings per share from continuing operations, diluted (3)   $ 0.56 $ 0.50 $ 1.02 $ 0.94
Pro Forma [Member] | Stahlgruber [Member]          
Business Acquisition          
Revenue, as reported   $ 336,318 $ 432,658 $ 815,405 $ 813,042
Income from continuing operations   $ 9,864 $ 1,267 $ 2,635 $ (6,321)
Basic earnings per share from continuing operations   $ 0.03 $ 0.00 $ 0.01 $ (0.02)
Diluted earnings per share from continuing operations   $ 0.03 $ 0.00 $ 0.01 $ (0.02)
Pro Forma [Member] | All 2018 Acquisitions excluding Stahlgruber [Member]          
Business Acquisition          
Revenue, as reported   $ 2,687   $ 8,844  
Income from continuing operations   $ 69   $ 238  
Basic earnings per share from continuing operations   $ 0.00   $ 0.00  
Diluted earnings per share from continuing operations   $ 0.00   $ 0.00  
Pro Forma [Member] | All 2018 and 2017 acquisitions excluding Stahlgruber [Member]          
Business Acquisition          
Revenue, as reported     $ 127,358   $ 272,063
Income from continuing operations     $ 5,067   $ 12,579
Basic earnings per share from continuing operations     $ 0.02   $ 0.04
Diluted earnings per share from continuing operations     $ 0.02   $ 0.04
v3.10.0.1
Discontinued Operations Results Of Discontinued Operations (Details) - USD ($)
$ in Thousands
2 Months Ended 3 Months Ended 6 Months Ended
Mar. 01, 2017
Jun. 30, 2018
Jun. 30, 2017
Mar. 31, 2017
Jun. 30, 2018
Jun. 30, 2017
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]            
Net loss from discontinued operations   $ 0 $ 0   $ 0 $ (4,531)
DCO Footnote 2 [Abstract]            
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax           (8,580)
PGW [Member]            
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract]            
Disposal Group, Including Discontinued Operation, Revenue           111,130
Disposal Group, Including Discontinued Operation, Costs of Goods Sold           100,084
Disposal Group, Including Discontinued Operation, General and Administrative Expense           8,369
Disposal Group, Including Discontinued Operation, Operating Income (Loss)           2,677
Disposal Group, Including Discontinued Operation, Other Expense           1,204
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax           3,881
Discontinued Operation, Tax Effect of Discontinued Operation           (3,598)
disposal group, including discontinued operation, equity in earnings           (534)
IncomeLossFromDiscontinuedOperationsExcludingLossOnSaleNetOfTaxAttributableToReportingEntity           (251)
Discontinued Operation, Gain (Loss) on Disposal of Discontinued Operation, Net of Tax           4,280
Net loss from discontinued operations           $ (4,531)
DCO Footnote 1 [Abstract]            
Interest Allocated to Discontinued Operations $ 2,000          
DCO Footnote 2 [Abstract]            
Discontinued Operation, Gain (Loss) from Disposal of Discontinued Operation, before Income Tax       $ (8,580)    
Discontinued Operation, Tax Effect of Gain (Loss) from Disposal of Discontinued Operation       (4,000)    
Discontinued Operation, Intra-Entity Amounts, Discontinued Operation after Disposal, Expense       $ 6,000    
v3.10.0.1
Discontinued Operations (Details) - USD ($)
$ in Thousands
2 Months Ended 3 Months Ended 4 Months Ended 6 Months Ended 12 Months Ended
Mar. 01, 2017
Jun. 30, 2018
Jun. 30, 2017
Mar. 31, 2017
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Dec. 31, 2016
Proceeds from Divestiture of Businesses, Net of Cash Divested             $ 301,297    
Proceeds from disposals of business/investment             $ 301,297    
Cash disposed as part of divestment                 $ 7,116
Commitments and Contingencies Disclosure [Abstract]                  
Related Party Transaction, Purchases from Related Party   $ 8,000 $ 13,000   $ 17,000 $ 18,000      
PGW [Member]                  
Proceeds from Divestiture of Businesses, Net of Cash Divested       $ 301,000          
Proceeds from disposals of business/investment               $ 316,000  
Cash disposed as part of divestment       $ 15,000          
Cash Provided by (Used in) Operating Activities, Discontinued Operations $ (4,000)                
Cash Provided by (Used in) Investing Activities, Discontinued Operations (4,000)                
Cash Provided by (Used in) Financing Activities, Discontinued Operations 15,000                
Commitments and Contingencies Disclosure [Abstract]                  
Intercompany Sales between Continuing and Discontinued Operations $ (8,000)                
Vitro S. A. B. de C.V. [Member] | PGW [Member]                  
Disposal Date       Mar. 01, 2017          
v3.10.0.1
Summary of Significant Accounting Policies - Additional Information (Details)
$ in Thousands, kr in Millions
3 Months Ended 6 Months Ended 12 Months Ended
Dec. 01, 2016
USD ($)
Jun. 30, 2018
SEK (kr)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
Jun. 30, 2017
SEK (kr)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Dec. 31, 2017
USD ($)
Aug. 02, 2018
USD ($)
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]                      
Reserve for uncollectible accounts     $ 64,000         $ 64,000   $ 58,000  
Inventory Disclosure [Abstract]                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory     356,221         $ 356,221   150,342  
Property, Plant and Equipment [Abstract]                      
Property, Plant and Equipment, Depreciation Methods               straight-line method      
Depreciation     39,000     $ 32,000   $ 76,000 $ 59,000    
Goodwill and Intangible Assets Disclosure [Abstract]                      
Amortization expense     30,000     25,000   54,000 48,000    
Estimated annual amortization expense in year one     78,000         78,000      
Estimated annual amortization expense in year two     129,000         129,000      
Estimated annual amortization expense in year three     98,000         98,000      
Estimated annual amortization expense in year four     73,000         73,000      
Estimated annual amortization expense in year five     61,000         61,000      
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]                      
Equity method investments     202,653         202,653   208,404  
Equity in earnings of unconsolidated subsidiaries     546     991   1,958 $ 1,205    
Effective Income Tax Rate Reconciliation, Amount [Abstract]                      
U.S. federal statutory rate             35.00%   35.00%    
Adoption of ASU 2018-02 (see Note 4)     0         5,345      
ManufacturedProducts [Member]                      
Inventory Disclosure [Abstract]                      
Inventory, Raw Materials and Supplies, Gross     13,000         13,000   10,000  
Inventory, Work in Process, Gross     2,000         2,000   2,000  
Inventory, Finished Goods, Gross     5,000         5,000   4,000  
Stahlgruber [Member]                      
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract]                      
Reserve for uncollectible accounts     3,000         3,000      
Inventory Disclosure [Abstract]                      
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Inventory     352,053         352,053      
Goodwill and Intangible Assets Disclosure [Abstract]                      
Goodwill, Acquired During Period               931,000      
All 2016 Acquisitions [Member]                      
Goodwill and Intangible Assets Disclosure [Abstract]                      
Goodwill, Acquired During Period                   $ 307,000  
Mekonomen [Member]                      
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract]                      
Equity method investments     194,000         194,000      
Equity Method Investment, Additional Information December 1, 2016                    
Equity Method Investment, Ownership Percentage 26.50%                    
Payments to Acquire Equity Method Investments $ 181,000                    
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity     122,000         122,000      
Equity in earnings of unconsolidated subsidiaries     1,000     2,000   2,000 $ 2,000    
Proceeds from Equity Method Investment, Distribution   kr 67 8,000   kr 67 $ 7,000          
Equity Method Investments, Fair Value Disclosure     $ 132,000         132,000     $ 168,000
Accumulated Other Comprehensive Income (Loss)                      
Effective Income Tax Rate Reconciliation, Amount [Abstract]                      
Adoption of ASU 2018-02 (see Note 4)               $ 5,345      
Accounting Standards Update 2018-02 [Member]                      
Effective Income Tax Rate Reconciliation, Amount [Abstract]                      
U.S. federal statutory rate       21.00%       21.00%      
v3.10.0.1
Financial Statement Information Schedule of Inventory (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Product Information    
Inventories (3) $ 356,221 $ 150,342
Inventories 2,718,158 2,380,783
Aftermarket and refurbished products    
Product Information    
Inventories 2,208,122 1,877,653
Salvage and remanufactured products    
Product Information    
Inventories 490,325 487,108
ManufacturedProducts [Member]    
Accounting Policies [Abstract]    
Inventory, Raw Materials, Gross 13,000 10,000
Inventory, Work in Process, Gross 2,000 2,000
Inventory, Finished Goods, Gross 5,000 4,000
Product Information    
Inventories $ 19,711 $ 16,022
v3.10.0.1
Financial Statement Information Schedule of Estimated Useful Lives (Details)
6 Months Ended
Jun. 30, 2018
Land improvements | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 10 years
Land improvements | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 20 years
Machinery and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Machinery and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 20 years
Computer equipment and software | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 3 years
Computer equipment and software | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 10 years
Furniture and Fixtures [Member] | Minimum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 5 years
Furniture and Fixtures [Member] | Maximum  
Property, Plant and Equipment [Line Items]  
Estimated useful life 7 years
v3.10.0.1
Financial Statement Information Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross $ 1,800,760   $ 1,800,760   $ 1,476,716
Less—Accumulated depreciation (661,819)   (661,819)   (606,112)
Property, Plant and Equipment, Net 1,188,464   1,188,464   913,089
Depreciation 39,000 $ 32,000 76,000 $ 59,000  
Land and improvements          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 187,210   187,210   137,790
Buildings and improvements          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 367,550   367,550   233,078
Machinery and equipment          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 601,967   601,967   521,526
Computer equipment and software          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 142,363   142,363   133,753
Vehicles And Trailers [Member]          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 171,639   171,639   161,269
Furniture and Fixtures [Member]          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 50,772   50,772   31,794
Leasehold improvements          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 279,259   279,259   257,506
Construction in Progress [Member]          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 49,523   $ 49,523   $ 42,485
Minimum | Land Improvements [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     10 years    
Minimum | Building Improvements [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     20 years    
Minimum | Machinery and equipment          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     3 years    
Minimum | Computer equipment and software          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     3 years    
Minimum | Vehicles And Trailers [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     3 years    
Minimum | Furniture and Fixtures [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     5 years    
Maximum | Land Improvements [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     20 years    
Maximum | Building Improvements [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     40 years    
Maximum | Machinery and equipment          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     20 years    
Maximum | Computer equipment and software          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     10 years    
Maximum | Vehicles And Trailers [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     10 years    
Maximum | Furniture and Fixtures [Member]          
Property, Plant and Equipment [Line Items]          
Property, Plant and Equipment, Useful Life     7 years    
Stahlgruber [Member]          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 257,142   $ 257,142    
Property, Plant and Equipment, Net 260,638   260,638    
Stahlgruber [Member] | Land and improvements          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 47,281   47,281    
Stahlgruber [Member] | Buildings and improvements          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 125,649   125,649    
Stahlgruber [Member] | Machinery and equipment          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 49,384   49,384    
Stahlgruber [Member] | Computer equipment and software          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 3,760   3,760    
Stahlgruber [Member] | Vehicles And Trailers [Member]          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 643   643    
Stahlgruber [Member] | Furniture and Fixtures [Member]          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 28,535   28,535    
Stahlgruber [Member] | Leasehold improvements          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross 1,890   1,890    
Stahlgruber [Member] | Construction in Progress [Member]          
Property, Plant and Equipment [Line Items]          
Property and equipment excluding construction in progress, gross $ 3,496   $ 3,496    
v3.10.0.1
Changes in Carrying Amount of Goodwill (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2018
USD ($)
Goodwill [Roll Forward]  
Beginning balance $ 3,536,511
Business acquisitions and adjustments to previously recorded goodwill 929,891
Exchange rate effects (44,426)
Ending balance 4,421,976
North America  
Goodwill [Roll Forward]  
Beginning balance 1,709,354
Business acquisitions and adjustments to previously recorded goodwill 714
Exchange rate effects (5,078)
Ending balance 1,704,990
Europe  
Goodwill [Roll Forward]  
Beginning balance 1,414,898
Business acquisitions and adjustments to previously recorded goodwill 934,844
Exchange rate effects (39,536)
Ending balance 2,310,206
Specialty  
Goodwill [Roll Forward]  
Beginning balance 412,259
Business acquisitions and adjustments to previously recorded goodwill (5,667)
Exchange rate effects 188
Ending balance 406,780
Stahlgruber [Member]  
Goodwill [Line Items]  
Goodwill, Acquired During Period 931,000
Goodwill [Roll Forward]  
Ending balance $ 930,567
v3.10.0.1
Components of Other Intangibles (Details) - USD ($)
$ in Thousands
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Finite-Lived Intangible Assets    
Gross carrying amount $ 1,248,430 $ 976,475
Accumulated amortization (357,499) (311,506)
Net 890,931 664,969
Other intangibles, net $ 973,031 $ 743,769
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 13 years 10 months 24 days 16 years 6 months
Trade Names [Member]    
Finite-Lived Intangible Assets    
Gross carrying amount $ 494,456 $ 327,332
Accumulated amortization (82,715) (75,095)
Net $ 411,741 $ 252,237
Trademarks and Trade Names [Member]    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Assets, Amortization Method Straight-line  
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 19 years 11 months 5 days 11 years 2 months 12 days
Customer and supplier relationships    
Finite-Lived Intangible Assets    
Gross carrying amount $ 580,314 $ 510,113
Accumulated amortization (196,983) (167,532)
Net $ 383,331 342,581
Software and technology related assets [Member]    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Assets, Amortization Method Straight-line  
Gross carrying amount $ 160,110 124,049
Accumulated amortization (68,163) (59,081)
Net $ 91,947 $ 64,968
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 7 years 4 months 20 days 11 years 1 month 6 days
Covenants not to compete    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Assets, Amortization Method Straight-line  
Gross carrying amount $ 13,550 $ 14,981
Accumulated amortization (9,638) (9,798)
Net $ 3,912 $ 5,183
Customer and supplier relationships [Member]    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Assets, Amortization Method Accelerated  
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 3 years 18 years 7 months 6 days
Maximum | Trademarks and Trade Names [Member]    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Asset, Useful Life 30 years  
Maximum | Software and technology related assets [Member]    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Asset, Useful Life 15 years  
Maximum | Covenants not to compete    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Asset, Useful Life 5 years  
Maximum | Customer and supplier relationships [Member]    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Asset, Useful Life 20 years  
Minimum | Trademarks and Trade Names [Member]    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Asset, Useful Life 4 years  
Minimum | Software and technology related assets [Member]    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Asset, Useful Life 3 years  
Minimum | Covenants not to compete    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Asset, Useful Life 2 years  
Minimum | Customer and supplier relationships [Member]    
Finite-Lived Intangible Assets    
Finite-Lived Intangible Asset, Useful Life 3 years  
Trademarks [Member]    
Finite-Lived Intangible Assets    
Indefinite-Lived Intangible Assets (Excluding Goodwill) $ 81,300 $ 78,800
Unclassified Indefinite-lived Intangible Assets [Member]    
Finite-Lived Intangible Assets    
Indefinite-Lived Intangible Assets (Excluding Goodwill) $ 800 $ 0
v3.10.0.1
Changes in Warranty Reserve (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2018
USD ($)
Warranty Reserve [Roll Forward]  
Beginning balance $ 23,151
Warranty expense 22,992
Warranty claims (21,088)
Ending balance $ 25,055
v3.10.0.1
Financial Statement Information Schedule of New Accounting Pronouncements (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Income Statement Related Disclosures [Abstract]      
Receivables, Net, Current $ 1,301,514 $ 1,065,617 $ 1,027,106
Prepaid Expense and Other Assets, Current 228,732 $ 178,987 134,479
Other assets 168,901   142,965
Other current liabilities 49,603   45,727
Deferred Income Taxes $ (332,602)   $ (252,359)
v3.10.0.1
Financial Statement Information Impact to quarterly financial statements as result of adoption of ASU 2016-09 (Details) - USD ($)
$ / shares in Units, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Jan. 01, 2018
Dec. 31, 2017
Assets            
Revenue $ 3,030,751 $ 2,458,411 $ 5,751,515 $ 4,801,254    
Receivables, net 1,301,514   1,301,514   $ 1,065,617 $ 1,027,106
Net Cash Provided by (Used in) Operating Activities     328,669 362,097    
Net Cash Provided by (Used in) Financing Activities     1,054,343 (423,076)    
Net income attributable to LKQ stockholders $ 157,007 $ 150,914 $ 309,967 $ 287,192    
Net income attributable to LKQ stockholders [1] $ 0.50 $ 0.49 $ 1.00 $ 0.93    
Net income attributable to LKQ stockholders [1] $ 0.50 $ 0.49 $ 0.99 $ 0.93    
Prepaid expenses and other current assets $ 228,732   $ 228,732   178,987 134,479
Liabilities [Abstract]            
Refund liability 103,694   103,694   83,019 0
Accounts payable 981,643   981,643     788,613
Other current liabilities 49,603   49,603     $ 45,727
Cost of goods sold 1,868,872 $ 1,493,402 3,535,665 $ 2,906,152    
Selling, general and administrative expenses (1) 826,044 $ 664,270 [2] 1,592,935 [2] $ 1,307,087 [2]    
Adjustment Due to ASC 606 [Member]            
Assets            
Receivables, net         38,511  
Prepaid expenses and other current assets         44,508  
Liabilities [Abstract]            
Refund liability         $ 83,019  
Amount of adjustment to prior balance [Member]            
Assets            
Revenue 3,030,378   5,759,091      
Receivables, net 1,254,189   1,254,189      
Prepaid expenses and other current assets 172,363   172,363      
Liabilities [Abstract]            
Refund liability 0   0      
Cost of goods sold 1,867,781   3,541,955      
Selling, general and administrative expenses (1) 826,762   1,594,221      
Adjustment Due to ASC 606 [Member]            
Assets            
Revenue 373   (7,576)      
Receivables, net 47,325   47,325      
Prepaid expenses and other current assets 56,369   56,369      
Liabilities [Abstract]            
Refund liability 103,694   103,694      
Cost of goods sold 1,091   (6,290)      
Selling, general and administrative expenses (1) $ (718)   $ (1,286)      
[1] (2) The sum of the individual earnings per share amounts may not equal the total due to rounding.
[2] (1) Selling, general and administrative expenses contain facility and warehouses expenses and distribution expenses that were previously shown separately.
v3.10.0.1
Financial Statement Information Equity Method Investments (Details)
Dec. 01, 2016
Mekonomen [Member]  
Schedule of Equity Method Investments [Line Items]  
Equity Method Investment, Additional Information December 1, 2016
v3.10.0.1
Financial Statement Information Finite-Lived Intangible Assets Acquired as Part of Business Combination (Details)
$ in Thousands
6 Months Ended
Jun. 30, 2018
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Finite-lived Intangible Assets Acquired $ 280,399,000
Trademarks and Trade Names [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Finite-lived Intangible Assets Acquired 173,382,000
Customer and supplier relationships [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Finite-lived Intangible Assets Acquired 78,239,000
Software and technology related assets [Member]  
Acquired Finite-Lived Intangible Assets [Line Items]  
Finite-lived Intangible Assets Acquired $ 28,778,000
v3.10.0.1
Financial Statement Information Finite-Lived Intangible Assets Acquired As Part Of Business Combination, Remaining Useful Life (Details)
6 Months Ended 12 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Finite-Lived Intangible Assets [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 13 years 10 months 24 days 16 years 6 months
Customer and supplier relationships [Member]    
Finite-Lived Intangible Assets [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 19 years 11 months 5 days 11 years 2 months 12 days
Customer and supplier relationships [Member]    
Finite-Lived Intangible Assets [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 3 years 18 years 7 months 6 days
Computer Software, Intangible Asset [Member]    
Finite-Lived Intangible Assets [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life 7 years 4 months 20 days 11 years 1 month 6 days
Covenants not to compete [Member]    
Finite-Lived Intangible Assets [Line Items]    
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life   4 years 4 months 24 days
v3.10.0.1
Revenue Recognition Disaggregation of Revenue (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Revenue Recognition [Line Items]          
Revenue $ 3,030,751 $ 2,458,411 $ 5,751,515 $ 4,801,254  
Contract with Customer, Refund Liability 104,000   104,000    
Contract with Customer, Right to Recover Product 56,000   56,000    
Contract With Customer, Right Of Return, Net         $ (38,000)
Revenue, Variable Consideration Reserve 89,000   89,000   $ 78,000
North America          
Revenue Recognition [Line Items]          
Revenue 1,335,166 1,206,514 2,665,009 2,414,754  
Europe          
Revenue Recognition [Line Items]          
Revenue 1,284,153 889,751 2,324,583 1,710,648  
Specialty          
Revenue Recognition [Line Items]          
Revenue 412,873 363,470 764,665 678,404  
Parts and Services          
Revenue Recognition [Line Items]          
Revenue 2,857,051 2,325,883 5,417,356 4,538,824  
Parts and Services | North America          
Revenue Recognition [Line Items]          
Revenue 1,165,422 1,075,656 2,338,007 2,155,531  
Parts and Services | Europe          
Revenue Recognition [Line Items]          
Revenue 1,279,996 887,872 2,317,042 1,707,039  
Parts and Services | Specialty          
Revenue Recognition [Line Items]          
Revenue 411,633 362,355 762,307 676,254  
Other Revenue          
Revenue Recognition [Line Items]          
Revenue $ 173,700 $ 132,528 $ 334,159 $ 262,430  
v3.10.0.1
Revenue Recognition Movement in Standard Prodcut Warranty Accrual (Details) - USD ($)
$ in Thousands
6 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Product Warranty Liability [Line Items]    
Deferred Service-Type Warranty Revenue $ 22 $ 19
Deferred Revenue, Additions 19  
Deferred Revenue, Revenue Recognized $ (16)  
Minimum    
Product Warranty Liability [Line Items]    
Standard Product Warranty Period 6 months  
Maximum    
Product Warranty Liability [Line Items]    
Standard Product Warranty Period 36 months  
v3.10.0.1
Restructuring and Acquisition Related Expenses - Additional Information (Details) - USD ($)
$ in Millions
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Acquisition Related Expenses [Abstract]        
Business Combination, Acquisition Related Costs $ 14 $ 2 $ 16 $ 5
Acquisition And Restructuring Integration Plans [Abstract]        
Restructuring Costs 2 $ 0 $ 4 $ 1
Restructuring and Related Cost, Description     Expenses incurred during the three and six months ended June 30, 2018 were primarily related to the integration of our acquisition of Andrew Page. This integration included the closure of duplicate facilities and termination of employees. primarily related to the ongoing integration activities in our Specialty segment. Expenses incurred were primarily related to facility closure and the merger of existing facilities into larger distribution centers.
Stahlgruber [Member]        
Acquisition Related Expenses [Abstract]        
Business Combination, Acquisition Related Costs 13   $ 15  
Maximum        
Acquisition And Restructuring Integration Plans [Abstract]        
Expected future restructuring expenses $ (15)   $ (15)  
v3.10.0.1
Equity Incentive Plans - Additional Information (Details)
$ in Millions
6 Months Ended
Jun. 30, 2018
USD ($)
shares
RSUs  
RSUs [Abstract]  
Fair value of RSUs vested during the period | $ $ 17
Performance Shares [Member]  
RSUs [Abstract]  
Reporting period of positive diluted earnings per share 5 years
Stock options  
Stock Options [Abstract]  
Options granted during the period 0
Options vested during the period 0
Minimum | Stock options  
Stock Options [Abstract]  
Stock options expiration period 6 years
Maximum | RSUs  
Stock Options [Abstract]  
Vesting period 5 years
Maximum | Stock options  
Stock Options [Abstract]  
Stock options expiration period 10 years
Vesting period 5 years
v3.10.0.1
Equity Incentive Plans Schedule of Unvested Restricted Stock Units Activity (Details) - RSUs - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Shares Outstanding [Abstract]    
Unvested RSUs, shares 1,776,935 1,624,390
RSUs granted, shares 593,131  
RSUs vested, shares (414,625)  
RSUs forfeited/canceled, shares (25,961)  
RSUs expected to vest 1,618,650  
lkq_expected_to_vest_other_than_options_weighted_average_per_share $ 34.34  
Weighted Average Fair Value [Abstract]    
Unvested RSUs, weighted average grant date fair value 34.40 $ 29.94
RSUs granted, weighted average grant date fair value 42.72  
RSUs vested, weighted average grant date fair value 28.95  
RSUs forfeited/canceled, weighted average grant date fair value $ 32.62  
RSUs expected to vest, weighted average remaining contractual term 2 years 9 months 18 days  
RSUs expected to vest, aggregate intrinsic value $ 51,633  
v3.10.0.1
Equity Incentive Plans Schedule of Stock Option Activity (Details) - Stock options - USD ($)
$ / shares in Units, $ in Thousands
6 Months Ended
Jun. 30, 2018
Dec. 31, 2017
Shares Outstanding [Abstract]    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number 1,416,297 1,738,073
Stock options exercised, shares (321,267)  
Stock options forfeited/canceled, shares (509)  
Exercisable and expected to vest stock options, shares 1,416,297  
Weighted Average Fair Value [Abstract]    
Stock options outstanding, weighted average exercise price $ 9.22 $ 9.20
Stock options exercised, weighted average exercise price 9.10  
Stock options forfeited/canceled, weighted average exercise price 32.31  
Exercisable and expected to vest stock options, weighted average exercise price $ 9.22  
Weighted Average Contractual Term [Abstract]    
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Remaining Contractual Term 1 year 2 months 12 days  
Exercisable and expected to vest stock options, weighted average remaining contractual term (years) 1 year 2 months 12 days  
Aggregate Intrinsic Value [Abstract]    
Stock options exercised, aggregate intrinsic value $ 9,450  
Stock options outstanding, aggregate intrinsic value 32,126  
Exercisable and expected to vest stock options, aggregate intrinsic value $ 32,126  
v3.10.0.1
Schedule of Stock-Based Compensation Expense Expected to be Recognized (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Share-based Compensation Arrangement by Share-based Payment Award        
Stock-based compensation expense     $ 11,844 $ 12,443
RSUs        
Share-based Compensation Arrangement by Share-based Payment Award        
Stock-based compensation expense $ 5,862 $ 5,158 11,844 $ 12,443
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options $ 46,000   $ 46,000  
v3.10.0.1
Earnings Per Share Earnings Per Share, Basic and Diluted (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Schedule of Earnings Per Share, Basic and Diluted [Line Items]        
Income from continuing operations $ 157,866 $ 150,914 $ 310,629 $ 291,723
Denominator for basic earnings per share—Weighted-average shares outstanding 312,556 308,407 311,045 308,218
Effect of dilutive securities:        
Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding 314,012 310,396 312,688 310,349
Basic earnings per share from continuing operations $ 0.51 $ 0.49 $ 1.00 $ 0.95
Diluted earnings per share from continuing operations $ 0.50 $ 0.49 $ 0.99 $ 0.94
RSUs        
Effect of dilutive securities:        
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements 406 453 512 509
Stock options        
Effect of dilutive securities:        
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements 1,050 1,536 1,131 1,622
v3.10.0.1
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares
shares in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share        
Antidilutive securities 0 0 0  
Restricted Stock Units (RSUs) [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share        
Antidilutive securities 575   288 73
Employee Stock Option [Member]        
Antidilutive Securities Excluded from Computation of Earnings Per Share        
Antidilutive securities   76   77
v3.10.0.1
Accumulated Other Comprehensive Income (Loss) Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Mar. 31, 2018
Dec. 31, 2017
Mar. 31, 2017
Dec. 31, 2016
Accumulated Other Comprehensive Income (Loss) [Line Items]                
Accumulated other comprehensive loss $ 116,061 $ 154,270 $ 116,061 $ 154,270 $ 14,618 $ 70,476 $ 245,636 $ 267,175
Pretax income (loss) (77,136) 62,694 (33,831) 84,430        
Income tax effect 5,354 (11,411) 4,243 (10,737)        
Reclassification of unrealized loss (gain) 27,504 (28,152) 18,757 (32,238)        
Reclassification of deferred income taxes (6,429) 10,452 (4,384) 11,974        
Other comprehensive income from unconsolidated subsidiaries 2,122 (439) 1,517 (601)        
Disposal of business, net       (1,925)        
Adoption of ASU 2018-02 (see Note 4) 0   5,345          
Accumulated Foreign Currency Adjustment Attributable to Parent [Member]                
Accumulated Other Comprehensive Income (Loss) [Line Items]                
Accumulated other comprehensive loss 125,753 157,353 125,753 157,353 20,589 71,933 250,950 272,529
Pretax income (loss) (107,167) 93,597 (58,732) 113,665        
Income tax effect (2,003) 0 (2,053) 0        
Reclassification of unrealized loss (gain) 0 0 0 0        
Reclassification of deferred income taxes 0 0 0 0        
Other comprehensive income from unconsolidated subsidiaries 0 0 0 0        
Disposal of business, net       1,511        
Adoption of ASU 2018-02 (see Note 4) 0   2,859          
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member]                
Accumulated Other Comprehensive Income (Loss) [Line Items]                
Accumulated other comprehensive loss (19,684) (10,324) (19,684) (10,324) (17,278) (11,538) (11,254) (8,091)
Pretax income (loss) 30,721 (30,179) 26,220 (29,347)        
Income tax effect 7,183 (11,136) 6,130 (10,780)        
Reclassification of unrealized loss (gain) 27,580 28,702 18,833 (32,959)        
Reclassification of deferred income taxes (6,448) 10,589 (4,403) 12,159        
Other comprehensive income from unconsolidated subsidiaries 0 0 0 0        
Disposal of business, net       0        
Adoption of ASU 2018-02 (see Note 4) 0   2,486          
Accumulated Defined Benefit Plans Adjustment Attributable to Parent [Member]                
Accumulated Other Comprehensive Income (Loss) [Line Items]                
Accumulated other comprehensive loss   (6,640)   (6,640)        
Reclassification of unrealized loss (gain)   (550)            
Reclassification of deferred income taxes   137            
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member]                
Accumulated Other Comprehensive Income (Loss) [Line Items]                
Accumulated other comprehensive loss (10,200) 6,640 (10,200) 6,640 (9,393) (8,772) (5,778) (2,737)
Pretax income (loss) 690 724 1,319 (112)        
Income tax effect 174 (275) 166 43        
Reclassification of unrealized loss (gain) (76)   (76) 721        
Reclassification of deferred income taxes 19   19 (185)        
Other comprehensive income from unconsolidated subsidiaries 0 0 0 0        
Disposal of business, net       (3,436)        
Adoption of ASU 2018-02 (see Note 4) 0   0          
Accumulated Gain (Loss) from Unconsoldated Subsidiaries [Member]                
Accumulated Other Comprehensive Income (Loss) [Line Items]                
Accumulated other comprehensive loss (208) 601 (208) 601 $ 1,914 $ 1,309 $ 162 $ 0
Pretax income (loss) 0 0 0 0        
Income tax effect 0 0 0 0        
Reclassification of unrealized loss (gain) 0 0 0 0        
Reclassification of deferred income taxes 0 0 0 0        
Other comprehensive income from unconsolidated subsidiaries 2,122 $ (439) 1,517 (601)        
Disposal of business, net       $ 0        
Adoption of ASU 2018-02 (see Note 4) $ 0   $ 0          
v3.10.0.1
Accumulated Other Comprehensive Income (Loss) Additional Information (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]        
Adoption of ASU 2018-02 (see Note 4) $ 0   $ 5,345  
Interest Rate Swap        
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]        
Unrealized Gain (Loss) on Derivatives       $ 2,000
Reclassification of unrealized loss (gain) 1,000   3,000  
Cross Currency Fx Forward Contract [Member]        
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]        
Reclassification of unrealized loss (gain) (3,000) $ (2,000) (4,000) (4,000)
Cross Currency Swap        
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]        
Reclassification of unrealized loss (gain) $ (24,000) $ (30,000) 12,000 $ 36,000
Accumulated Other Comprehensive Income (Loss)        
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items]        
Adoption of ASU 2018-02 (see Note 4)     $ 5,345  
v3.10.0.1
Long-Term Obligations - Additional Information (Details)
$ in Thousands, € in Millions
3 Months Ended 6 Months Ended 12 Months Ended 46 Months Ended
Jun. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2017
USD ($)
Jan. 29, 2023
USD ($)
Apr. 09, 2018
EUR (€)
Dec. 01, 2017
USD ($)
Nov. 29, 2016
USD ($)
Apr. 14, 2016
EUR (€)
Jan. 29, 2016
USD ($)
May 09, 2013
USD ($)
US Notes (2023) [Member]                      
Debt Instrument                      
Long-term Debt $ 600,000 $ 600,000   $ 600,000             $ 600,000
Senior notes interest rate                     4.75%
Euro Notes (2024)                      
Debt Instrument                      
Long-term Debt 584,200 584,200   600,150         € 500    
Senior notes interest rate                 3.875%    
Euro Notes 2026/28 [Member]                      
Debt Instrument                      
Payments of Financing Costs 15,000                    
Long-term Debt 1,200,000 1,200,000   0   € 1,000          
Receivables securitization                      
Debt Instrument                      
Borrowings under receivable securitization facility, carrying value 100,000 100,000   100,000              
Revolving Credit Facility [Member]                      
Debt Instrument                      
Long-term Line of Credit $ 1,800,000 $ 1,800,000   2,000,000              
Amendment No. 2, Fourth Amended and Restate Credit Agreement [Member] | Revolving Credit Facility [Member]                      
Debt Instrument                      
Line of Credit Facility, Maximum Borrowing Capacity             $ 2,750,000        
Line of Credit Facility, Increase (Decrease), Net       $ 300,000              
Line of Credit Facility, Frequency of Payments   quarterly installments                  
Line of Credit Facility, Periodic Payment     $ 4,000   $ 9,000            
Increment change in applicable margin             0.25%        
Weighted average interest rates 2.50% 2.50%   2.20%              
Long-Term Line of Credit, Current $ 26,000 $ 26,000   $ 18,000              
Outstanding letters of credit 65,000 65,000                  
Availability on the revolving credit facility $ 1,600,000 $ 1,600,000                  
Payments of Financing Costs       5,000              
Amendment No. 2, Fourth Amended and Restate Credit Agreement [Member] | Letter of Credit [Member]                      
Debt Instrument                      
Line of Credit Facility, Commitment Fee Percentage   0.125%                  
Fourth Amended Credit Agreement | Revolving Credit Facility [Member]                      
Debt Instrument                      
Line of Credit Facility, Maximum Borrowing Capacity                   $ 2,450,000  
Mitsubishi UFJ [Member] | Receivables securitization                      
Debt Instrument                      
Line of Credit Facility, Maximum Borrowing Capacity               $ 100,000      
Weighted average interest rates 3.10% 3.10%                  
Borrowings under receivable securitization facility, carrying value $ 100,000 $ 100,000   100,000              
TwentyTwentySix [Member] | Euro Notes 2026/28 [Member]                      
Debt Instrument                      
Long-term Debt | €           € 750          
Senior notes interest rate           3.625%          
TwentyTwentyEight [Member] | Euro Notes 2026/28 [Member]                      
Debt Instrument                      
Long-term Debt | €           € 250          
Senior notes interest rate           4.125%          
Net Receivables [Member] | Mitsubishi UFJ [Member] | Receivables securitization                      
Debt Instrument                      
Debt Instrument, Collateral Amount $ 138,000 $ 138,000   $ 144,000              
US Notes (2023) [Member]                      
Debt Instrument                      
Senior notes interest rate                     4.75%
Minimum increment [Member] | Amendment No. 2, Fourth Amended and Restate Credit Agreement [Member] | Revolving Credit Facility [Member]                      
Debt Instrument                      
Increment change in commitment fees 0.025% 0.025%                  
Maximum increment [Member] | Amendment No. 2, Fourth Amended and Restate Credit Agreement [Member] | Revolving Credit Facility [Member]                      
Debt Instrument                      
Increment change in commitment fees 0.05% 0.05%                  
v3.10.0.1
Schedule of Long-Term Obligations (Details)
$ in Thousands, € in Millions
Jun. 30, 2018
USD ($)
Apr. 09, 2018
EUR (€)
Dec. 31, 2017
USD ($)
Apr. 14, 2016
EUR (€)
May 09, 2013
USD ($)
Debt Instrument          
Long-term obligations, total $ 4,476,000   $ 3,428,280    
Deferred Finance Costs, Noncurrent, Net (32,832)   (21,476)    
Deferred Finance Costs, Current, Net (4,620)   (2,824)    
Long-term obligations, total, net 4,438,548   3,403,980    
Current portion of long-term obligations (177,372)   (126,360)    
Long-term obligations, excluding current portion 4,261,176   3,277,620    
Loans Payable          
Debt Instrument          
Term loan 695,990   704,800    
Revolving Credit Facility [Member]          
Debt Instrument          
Long-term Line of Credit 1,120,911   1,283,551    
US Notes (2023) [Member]          
Debt Instrument          
Long-term Debt 600,000   600,000   $ 600,000
Euro Notes (2024)          
Debt Instrument          
Long-term Debt 584,200   600,150 € 500  
Debt Instrument, Face Amount 584,200        
Euro Notes 2026/28 [Member]          
Debt Instrument          
Long-term Debt 1,200,000 € 1,000 0    
Debt Instrument, Face Amount 1,168,400        
Receivables securitization          
Debt Instrument          
Borrowings under receivable securitization facility, carrying value 100,000   100,000    
Notes payable          
Debt Instrument          
Notes Payable 26,998   29,146    
Other Long Term Debt          
Debt Instrument          
Other long-term debt 179,501   110,633    
Revolving Credit Facility [Member]          
Debt Instrument          
Long-term Line of Credit $ 1,800,000   $ 2,000,000    
TwentyTwentySix [Member] | Euro Notes 2026/28 [Member]          
Debt Instrument          
Long-term Debt | €   750      
TwentyTwentyEight [Member] | Euro Notes 2026/28 [Member]          
Debt Instrument          
Long-term Debt | €   € 250      
v3.10.0.1
Schedule of Long-Term Obligations (Parenthetical) (Details)
Jun. 30, 2018
Dec. 31, 2017
Notes payable    
Debt Instrument    
Weighted average interest rates 1.50% 1.40%
Other Long Term Debt    
Debt Instrument    
Weighted average interest rates 2.10% 1.70%
v3.10.0.1
Derivative Instruments and Hedging Activities - Additional Information (Details)
$ in Thousands, € in Millions
Jun. 30, 2018
USD ($)
Jun. 30, 2018
EUR (€)
Dec. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Dec. 31, 2016
EUR (€)
Interest Rate Swap          
Derivative          
Derivative, Notional Amount $ 590,000   $ 590,000    
Cross Currency Swap          
Derivative          
Derivative, Notional Amount 398,614   $ 406,546    
Settlement of Notional Amounts | €   € (15)      
2016 Interest Rate Swaps [Member] | Interest Rate Swap          
Derivative          
Derivative, Notional Amount $ 590,000        
2016CrossCurrencySwaps [Member] | Cross Currency Swap          
Derivative          
Derivative, Notional Amount       $ 422,000 € 400
v3.10.0.1
Schedule of Cash Flow Hedges (Details)
€ in Millions, $ in Millions
Jun. 30, 2018
USD ($)
Jun. 30, 2018
EUR (€)
Dec. 31, 2017
USD ($)
Derivative Instruments and Hedging Activities Disclosure [Abstract]      
Effect of Netting Derivative Instruments $ (18)   $ (12)
Net loss included in accumulated other comprehensive income (loss) to be reclassified into interest expense within the next 12 months $ 3    
Settlement of Notional Amounts | €   € (15)  
v3.10.0.1
Fair Value Measurements - Additional Information (Details)
$ in Thousands, € in Millions
Jun. 30, 2018
USD ($)
Apr. 09, 2018
EUR (€)
Dec. 31, 2017
USD ($)
Apr. 14, 2016
EUR (€)
May 09, 2013
USD ($)
Fair Value Measurements          
Derivative Asset, Noncurrent $ 35,797   $ 24,606    
Derivative Liability, Noncurrent 52,208   61,492    
Receivables securitization          
Fair Value Measurements          
Borrowings under receivable securitization facility, carrying value 100,000   100,000    
US Notes (2023) [Member]          
Fair Value Measurements          
Debt instrument, fair value 598,000   615,000    
Debt Instrument, carrying value 600,000   600,000   $ 600,000
Euro Notes (2024)          
Fair Value Measurements          
Debt instrument, fair value 609,000   658,000    
Debt Instrument, carrying value 584,200   600,150 € 500  
Euro Notes 2026/28 [Member]          
Fair Value Measurements          
Debt instrument, fair value 1,200,000        
Debt Instrument, carrying value 1,200,000 € 1,000 0    
Revolving Credit Facility [Member]          
Fair Value Measurements          
Long-term Line of Credit 1,800,000   2,000,000    
Cross Currency Interest Rate Contract [Member]          
Fair Value Measurements          
Assets, Fair Value Disclosure     5,504    
Derivative Asset, Noncurrent 10,382   5,504    
Fair Value, Measurements, Recurring [Member]          
Fair Value Measurements          
Assets, Fair Value Disclosure 86,030   70,590    
Fair Value, Measurements, Recurring [Member] | Cash Surrender Value [Member]          
Fair Value Measurements          
Assets, Fair Value Disclosure 50,233   45,984    
Fair Value, Measurements, Recurring [Member] | Cross Currency Interest Rate Contract [Member]          
Fair Value Measurements          
Assets, Fair Value Disclosure 10,382        
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2          
Fair Value Measurements          
Assets, Fair Value Disclosure 86,030   70,590    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Cash Surrender Value [Member]          
Fair Value Measurements          
Assets, Fair Value Disclosure 50,233   45,984    
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 | Cross Currency Interest Rate Contract [Member]          
Fair Value Measurements          
Assets, Fair Value Disclosure 10,382   5,504    
Interest Rate Swap          
Fair Value Measurements          
Derivative, Notional Amount 590,000   590,000    
Derivative Asset, Noncurrent 25,415   19,102    
Derivative Liability, Noncurrent 0        
Cross Currency Interest Rate Contract [Member]          
Fair Value Measurements          
Derivative, Notional Amount 398,614   406,546    
Derivative Liability, Noncurrent $ 52,208   $ 61,492    
v3.10.0.1
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Cross Currency Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value assets measured on recurring basis   $ 5,504
Fair Value, Measurements, Recurring [Member]    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value assets measured on recurring basis $ 86,030 70,590
Fair value liabilities measured on recurring basis 106,497 111,327
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value assets measured on recurring basis 86,030 70,590
Fair value liabilities measured on recurring basis 103,772 108,691
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value liabilities measured on recurring basis 2,725 2,636
Fair Value, Measurements, Recurring [Member] | Cash surrender value of life insurance    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value assets measured on recurring basis 50,233 45,984
Fair Value, Measurements, Recurring [Member] | Cash surrender value of life insurance | Fair Value, Inputs, Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value assets measured on recurring basis 50,233 45,984
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value assets measured on recurring basis 25,415 19,102
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap | Fair Value, Inputs, Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value assets measured on recurring basis 25,415 19,102
Fair Value, Measurements, Recurring [Member] | Cross Currency Swap    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value assets measured on recurring basis 10,382  
Fair value liabilities measured on recurring basis 52,208 61,492
Fair Value, Measurements, Recurring [Member] | Cross Currency Swap | Fair Value, Inputs, Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value assets measured on recurring basis 10,382 5,504
Fair value liabilities measured on recurring basis 52,208 61,492
Fair Value, Measurements, Recurring [Member] | Contingent Consideration Liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value liabilities measured on recurring basis 2,725 2,636
Fair Value, Measurements, Recurring [Member] | Contingent Consideration Liabilities | Fair Value, Inputs, Level 3    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value liabilities measured on recurring basis 2,725 2,636
Fair Value, Measurements, Recurring [Member] | Deferred Compensation Liabilities    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value liabilities measured on recurring basis 51,564 47,199
Fair Value, Measurements, Recurring [Member] | Deferred Compensation Liabilities | Fair Value, Inputs, Level 2    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value liabilities measured on recurring basis $ 51,564 $ 47,199
v3.10.0.1
Employee Benefit Plans (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2018
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Defined Benefit Plan Disclosure [Line Items]            
Liability, Defined Benefit Plan, Noncurrent $ 121,000     $ 121,000   $ 46,000
Defined Benefit Plan, Service Cost 516 $ 889   984 $ 1,776  
Defined Benefit Plan, Interest Cost 776 833   1,446 1,341  
Defined Benefit Plan, Expected Return (Loss) on Plan Assets (783) (249)   (1,500) (552)  
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) 0 (66)   0 (130)  
Defined Benefit Plan, Amortization of Gain (Loss) 76 (484)   76 (591)  
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) 585 $ 923   1,006 $ 1,844  
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract]            
Defined Benefit Plan, Plan Assets, Contributions by Employer     $ 3,000 2,000    
Stahlgruber [Member]            
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract]            
Defined Benefit Plan, Benefit Obligation $ 75,000     $ 75,000    
v3.10.0.1
Future Minimum Lease Commitments (Details)
$ in Thousands
Jun. 30, 2018
USD ($)
Commitments and Contingencies Disclosure [Abstract]  
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year $ 142,000
Operating Leases, Future Minimum Payments Due, Next Twelve Months 248,418
Operating Leases, Future Minimum Payments, Due in Two Years 206,988
Operating Leases, Future Minimum Payments, Due in Three Years 161,302
Operating Leases, Future Minimum Payments, Due in Four Years 128,298
Operating Leases, Future Minimum Payments, Due in Five Years 107,904
Thereafter 611,801
Future Minimum Lease Payments $ 1,606,711
v3.10.0.1
Segment and Geographic Information - Additional Information (Details)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Jun. 30, 2018
USD ($)
Jun. 30, 2017
USD ($)
Segment Reporting Information        
Revenue $ 3,030,751 $ 2,458,411 $ 5,751,515 $ 4,801,254
Segment EBITDA 341,971 305,859 637,187 596,129
Depreciation and amortization $ 68,438 56,002 129,504 106,606
Number of operating segments 4      
Number of reportable segments 3      
Intersegment [Member]        
Segment Reporting Information        
Revenue $ 0 0 0 0
Third Party [Member]        
Segment Reporting Information        
Revenue 3,030,751 2,458,411 5,751,515 4,801,254
North America        
Segment Reporting Information        
Revenue 1,335,166 1,206,514 2,665,009 2,414,754
Segment EBITDA 175,010 173,732 352,723 349,867
Depreciation and amortization $ 21,606 21,823 42,834 42,201
Number of reportable segments 1      
North America | Intersegment [Member]        
Segment Reporting Information        
Revenue $ 201 209 384 402
North America | Third Party [Member]        
Segment Reporting Information        
Revenue 1,334,965 1,206,305 2,664,625 2,414,352
Europe        
Segment Reporting Information        
Revenue 1,284,153 889,751 2,324,583 1,710,648
Segment EBITDA 110,893 83,549 186,427 162,243
Depreciation and amortization 39,801 28,732 72,558 53,483
Europe | Intersegment [Member]        
Segment Reporting Information        
Revenue 0 0 0 0
Europe | Third Party [Member]        
Segment Reporting Information        
Revenue 1,284,153 889,751 2,324,583 1,710,648
Specialty        
Segment Reporting Information        
Revenue 412,873 363,470 764,665 678,404
Segment EBITDA 56,068 48,578 98,037 84,019
Depreciation and amortization 7,031 5,447 14,112 10,922
Specialty | Intersegment [Member]        
Segment Reporting Information        
Revenue 1,240 1,115 2,358 2,150
Specialty | Third Party [Member]        
Segment Reporting Information        
Revenue 411,633 362,355 762,307 676,254
Intersegment Eliminations [Member]        
Segment Reporting Information        
Revenue (1,441) (1,324) (2,742) (2,552)
Segment EBITDA 0 0 0 0
Depreciation and amortization 0 0 0 0
Intersegment Eliminations [Member] | Intersegment [Member]        
Segment Reporting Information        
Revenue (1,441) (1,324) (2,742) (2,552)
Intersegment Eliminations [Member] | Third Party [Member]        
Segment Reporting Information        
Revenue $ 0 $ 0 $ 0 $ 0
v3.10.0.1
Schedule of Financial Performance by Reportable Segment (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information        
Revenue $ 3,030,751 $ 2,458,411 $ 5,751,515 $ 4,801,254
Segment EBITDA 341,971 305,859 637,187 596,129
Depreciation and amortization 68,438 56,002 129,504 106,606
North America        
Segment Reporting Information        
Revenue 1,335,166 1,206,514 2,665,009 2,414,754
Segment EBITDA 175,010 173,732 352,723 349,867
Depreciation and amortization 21,606 21,823 42,834 42,201
Europe        
Segment Reporting Information        
Revenue 1,284,153 889,751 2,324,583 1,710,648
Segment EBITDA 110,893 83,549 186,427 162,243
Depreciation and amortization 39,801 28,732 72,558 53,483
Specialty        
Segment Reporting Information        
Revenue 412,873 363,470 764,665 678,404
Segment EBITDA 56,068 48,578 98,037 84,019
Depreciation and amortization 7,031 5,447 14,112 10,922
Intersegment Eliminations [Member]        
Segment Reporting Information        
Revenue (1,441) (1,324) (2,742) (2,552)
Segment EBITDA 0 0 0 0
Depreciation and amortization 0 0 0 0
Third Party [Member]        
Segment Reporting Information        
Revenue 3,030,751 2,458,411 5,751,515 4,801,254
Third Party [Member] | North America        
Segment Reporting Information        
Revenue 1,334,965 1,206,305 2,664,625 2,414,352
Third Party [Member] | Europe        
Segment Reporting Information        
Revenue 1,284,153 889,751 2,324,583 1,710,648
Third Party [Member] | Specialty        
Segment Reporting Information        
Revenue 411,633 362,355 762,307 676,254
Third Party [Member] | Intersegment Eliminations [Member]        
Segment Reporting Information        
Revenue 0 0 0 0
Intersegment [Member]        
Segment Reporting Information        
Revenue 0 0 0 0
Intersegment [Member] | North America        
Segment Reporting Information        
Revenue 201 209 384 402
Intersegment [Member] | Europe        
Segment Reporting Information        
Revenue 0 0 0 0
Intersegment [Member] | Specialty        
Segment Reporting Information        
Revenue 1,240 1,115 2,358 2,150
Intersegment [Member] | Intersegment Eliminations [Member]        
Segment Reporting Information        
Revenue $ (1,441) $ (1,324) $ (2,742) $ (2,552)
v3.10.0.1
Reconciliation Of Segment EBITDA To Net Income (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Segment Reporting [Abstract]          
Net income $ 157,866 $ 150,914 $ 310,629 $ 287,192  
Less: net income attributable to noncontrolling interest 859 0 662 0  
Noncontrolling interest 57,503   57,503   $ 8,484
Net income attributable to LKQ stockholders 157,007 150,914 309,967 287,192  
Net loss from discontinued operations 0 0 0 (4,531)  
Net income from continuing operations attributable to LKQ stockholders 157,007 150,914 309,967 291,723  
Depreciation and amortization 63,163 53,645 119,621 102,301  
Depreciation and amortization - cost of goods sold 5,275 2,357 9,883 4,305  
Interest expense, net 38,272 24,596 66,787 48,584  
Provision for income taxes 60,775 75,862 110,359 148,017  
EBITDA 324,492 307,374 616,617 594,930  
Equity in earnings of unconsolidated subsidiaries 546 991 1,958 1,205  
Gains on bargain purchases 328 3,077 328 3,077 $ 3,870
Restructuring and acquisition related expenses 15,878 2,521 19,932 5,449  
Inventory step-up adjustment - acquisition related 0 0 403 0  
Impairment of net assets held for sale 2,438 0 2,438 0  
Change in fair value of contingent consideration liabilities (37) (32) (83) (32)  
Segment EBITDA $ 341,971 $ 305,859 $ 637,187 $ 596,129  
v3.10.0.1
Schedule of Capital Expenditures by Reportable Segment (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Segment Reporting Information        
Capital Expenditures $ 53,232 $ 47,147 $ 115,421 $ 91,545
North America        
Segment Reporting Information        
Capital Expenditures 29,206 22,153 58,868 38,913
Europe        
Segment Reporting Information        
Capital Expenditures 16,863 22,676 45,678 43,134
Specialty        
Segment Reporting Information        
Capital Expenditures 7,163 2,318 10,875 5,900
Discontinued Operations [Member]        
Segment Reporting Information        
Capital Expenditures $ 0 $ 0 $ 0 $ 3,598
v3.10.0.1
Schedule of Assets by Reportable Segment (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Segment Reporting Information      
Receivables, net $ 1,301,514 $ 1,065,617 $ 1,027,106
Inventories 2,718,158   2,380,783
Property, plant and equipment, net 1,188,464   913,089
Equity method investments 202,653   208,404
Other unallocated assets 6,137,842   4,837,490
Total assets 11,548,631   9,366,872
North America      
Segment Reporting Information      
Receivables, net 443,651   379,666
Inventories 1,068,146   1,076,393
Property, plant and equipment, net 548,981   537,286
Equity method investments 336   336
Europe      
Segment Reporting Information      
Receivables, net 716,609   555,372
Inventories 1,296,608   964,068
Property, plant and equipment, net 553,448   293,539
Equity method investments 202,317   208,068
Specialty      
Segment Reporting Information      
Receivables, net 141,254   92,068
Inventories 353,404   340,322
Property, plant and equipment, net $ 86,035   $ 82,264
v3.10.0.1
Segment and Geographic Information Schedule of Revenue by Geographic Area (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Revenues from External Customers and Long-Lived Assets        
Revenue $ 3,030,751 $ 2,458,411 $ 5,751,515 $ 4,801,254
UNITED STATES        
Revenues from External Customers and Long-Lived Assets        
Revenue 1,621,343 1,456,065 3,181,370 2,873,105
UNITED KINGDOM        
Revenues from External Customers and Long-Lived Assets        
Revenue 454,689 390,022 885,681 772,674
Other countries        
Revenues from External Customers and Long-Lived Assets        
Revenue $ 954,719 $ 612,324 $ 1,684,464 $ 1,155,475
v3.10.0.1
Schedule of Tangible Long-Lived Assets by Geographic Area (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Dec. 31, 2017
Revenues from External Customers and Long-Lived Assets    
Long-lived Assets $ 1,188,464 $ 913,089
UNITED STATES    
Revenues from External Customers and Long-Lived Assets    
Long-lived Assets 599,515 583,236
UNITED KINGDOM    
Revenues from External Customers and Long-Lived Assets    
Long-lived Assets 175,782 178,021
Other countries    
Revenues from External Customers and Long-Lived Assets    
Long-lived Assets 201,034 151,791
GERMANY    
Revenues from External Customers and Long-Lived Assets    
Long-lived Assets $ 212,133 $ 41
v3.10.0.1
Condensed Consolidating Statements of Income (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Condensed Financial Statements, Captions [Line Items]          
Revenue $ 3,030,751 $ 2,458,411 $ 5,751,515 $ 4,801,254  
Cost of goods sold 1,868,872 1,493,402 3,535,665 2,906,152  
Gross margin 1,161,879 965,009 2,215,850 1,895,102  
Selling, general and administrative expenses (1) 826,044 664,270 [1] 1,592,935 [1] 1,307,087 [1]  
Restructuring and acquisition related expenses 15,878 2,521 19,932 5,449  
Depreciation and amortization 63,163 53,645 119,621 102,301  
Operating Income (Loss) 256,794 244,573 483,362 480,265  
Other expense (income):          
Interest expense, net 38,272 24,596 66,787 48,584  
Interest expense, net 38,272 24,596 66,787 48,584  
Intercompany interest (income) expense, net 0 0 0 0  
Gains on bargain purchases (328) (3,077) (328) (3,077) $ (3,870)
Other (income) expense, net 755 (2,731) (2,127) (3,777)  
Total other expense, net 38,699 18,788 64,332 41,730  
(Loss) income before (benefit) provision for income taxes 218,095 225,785 419,030 438,535  
Provision for income taxes 60,775 75,862 110,359 148,017  
Equity in earnings of unconsolidated subsidiaries 546 991 1,958 1,205  
Equity in earnings of subsidiaries 0 0 0 0  
Income from continuing operations 157,866 150,914 310,629 291,723  
Net loss from discontinued operations 0 0 0 (4,531)  
Less: net income attributable to noncontrolling interest 859 0 662 0  
Net income attributable to LKQ stockholders 157,007 150,914 309,967 287,192  
Parent          
Condensed Financial Statements, Captions [Line Items]          
Revenue 0 0 0 0  
Cost of goods sold 0 0 0 0  
Gross margin 0 0 0 0  
Selling, general and administrative expenses (1) 9,683 9,165 18,813 18,348  
Restructuring and acquisition related expenses 0 0 0 0  
Depreciation and amortization 21 30 50 60  
Operating Income (Loss) (9,704) (9,195) (18,863) (18,408)  
Other expense (income):          
Interest expense, net   16,492   32,672  
Interest expense, net 17,805   35,813    
Intercompany interest (income) expense, net (15,406) (2,160) (30,806) (7,832)  
Gains on bargain purchases   0      
Other (income) expense, net 117 (37) (898) 254  
Total other expense, net (2,516) (14,295) (4,109) (25,094)  
(Loss) income before (benefit) provision for income taxes (12,220) (23,490) (22,972) (43,502)  
Provision for income taxes 3,744 (11,161) (7,648) (18,598)  
Equity in earnings of unconsolidated subsidiaries 0 182 0 0  
Equity in earnings of subsidiaries 165,483 163,061 325,291 316,627  
Income from continuing operations 157,007     291,723  
Net loss from discontinued operations       (4,531)  
Less: net income attributable to noncontrolling interest 0   0    
Net income attributable to LKQ stockholders 157,007 150,914 309,967 287,192  
Guarantors          
Condensed Financial Statements, Captions [Line Items]          
Revenue 1,640,396 1,487,435 3,217,991 2,940,951  
Cost of goods sold 988,671 889,087 1,934,586 1,752,462  
Gross margin 651,725 598,348 1,283,405 1,188,489  
Selling, general and administrative expenses (1) 430,693 385,443 857,490 770,971  
Restructuring and acquisition related expenses 0 654 330 2,537  
Depreciation and amortization 24,526 24,586 48,864 48,067  
Operating Income (Loss) 196,506 187,665 376,721 366,914  
Other expense (income):          
Interest expense, net   26   224  
Interest expense, net (113)   99    
Intercompany interest (income) expense, net 9,865 (2,735) 19,545 (1,716)  
Gains on bargain purchases   0      
Other (income) expense, net (4,397) (4,067) (10,279) (4,236)  
Total other expense, net (5,355) 6,776 (9,365) 5,728  
(Loss) income before (benefit) provision for income taxes 191,151 194,441 367,356 372,642  
Provision for income taxes (53,543) 73,363 99,420 143,401  
Equity in earnings of unconsolidated subsidiaries 0 0 0 0  
Equity in earnings of subsidiaries 4,451 5,795 9,561 10,608  
Income from continuing operations 142,059     239,849  
Net loss from discontinued operations       (4,531)  
Less: net income attributable to noncontrolling interest 0   0    
Net income attributable to LKQ stockholders 142,059 126,873 277,497 235,318  
Non-Guarantors          
Condensed Financial Statements, Captions [Line Items]          
Revenue 1,426,650 1,001,733 2,606,892 1,931,704  
Cost of goods sold 916,496 635,072 1,674,447 1,225,091  
Gross margin 510,154 366,661 932,445 706,613  
Selling, general and administrative expenses (1) 385,668 269,662 716,632 517,768  
Restructuring and acquisition related expenses 15,878 1,867 19,602 2,912  
Depreciation and amortization 38,616 29,029 70,707 54,174  
Operating Income (Loss) 69,992 66,103 125,504 131,759  
Other expense (income):          
Interest expense, net   8,078   15,688  
Interest expense, net 20,580   30,875    
Intercompany interest (income) expense, net 5,541 4,895 11,261 9,548  
Gains on bargain purchases 328 (3,077) 328 3,077  
Other (income) expense, net 5,035 1,373 9,050 205  
Total other expense, net 30,828 (11,269) 50,858 (22,364)  
(Loss) income before (benefit) provision for income taxes 39,164 54,834 74,646 109,395  
Provision for income taxes (10,976) 13,660 18,587 23,214  
Equity in earnings of unconsolidated subsidiaries 546 809 1,958 1,205  
Equity in earnings of subsidiaries 0 0 0 0  
Income from continuing operations 28,734     87,386  
Net loss from discontinued operations       2,050  
Less: net income attributable to noncontrolling interest 859   662    
Net income attributable to LKQ stockholders 27,875 41,983 57,355 89,436  
Eliminations          
Condensed Financial Statements, Captions [Line Items]          
Revenue (36,295) (30,757) (73,368) (71,401)  
Cost of goods sold (36,295) (30,757) (73,368) (71,401)  
Gross margin 0 0 0 0  
Selling, general and administrative expenses (1) 0 0 0 0  
Restructuring and acquisition related expenses 0 0 0 0  
Depreciation and amortization 0 0 0 0  
Operating Income (Loss) 0 0 0 0  
Other expense (income):          
Interest expense, net   0   0  
Interest expense, net 0   0    
Intercompany interest (income) expense, net 0 0 0 0  
Gains on bargain purchases   0      
Other (income) expense, net 0 0 0 0  
Total other expense, net 0 0 0 0  
(Loss) income before (benefit) provision for income taxes 0 0 0 0  
Provision for income taxes 0 0 0 0  
Equity in earnings of unconsolidated subsidiaries 0 0 0 0  
Equity in earnings of subsidiaries (169,934) (168,856) (334,852) (327,235)  
Income from continuing operations (169,934)     (327,235)  
Net loss from discontinued operations       2,481  
Less: net income attributable to noncontrolling interest 0   0    
Net income attributable to LKQ stockholders $ (169,934) $ (168,856) $ (334,852) $ (324,754)  
[1] (1) Selling, general and administrative expenses contain facility and warehouses expenses and distribution expenses that were previously shown separately.
v3.10.0.1
Condensed Consolidating Statements of Comprehensive Income (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Condensed Financial Statements, Captions [Line Items]        
Net income $ 157,866 $ 150,914 $ 310,629 $ 287,192
Less: net income attributable to noncontrolling interest 859 0 662 0
Net income attributable to LKQ stockholders 157,007 150,914 309,967 287,192
Other comprehensive income (loss):        
Foreign currency translation, net of tax (105,164) 93,597 (56,679) 115,176
Net change in unrealized gains/losses on cash flow hedges, net of tax 2,406 (930) 5,660 2,233
Net change in unrealized gains/losses on pension plans, net of tax (807) (862) (1,428) (3,903)
Net change in other comprehensive loss from unconsolidated subsidiaries 2,122 (439) 1,517 (601)
Other comprehensive (loss) income (101,443) 91,366 (50,930) 112,905
Comprehensive income 56,423 242,280 259,699 400,097
Less: comprehensive income attributable to noncontrolling interest 859   662  
Comprehensive income (loss) attributable to LKQ stockholders 55,564 242,280 259,037 400,097
Parent        
Condensed Financial Statements, Captions [Line Items]        
Net income 157,007   309,967  
Less: net income attributable to noncontrolling interest 0   0  
Net income attributable to LKQ stockholders 157,007 150,914 309,967 287,192
Other comprehensive income (loss):        
Foreign currency translation, net of tax (105,164) 93,597 (56,679) 115,176
Net change in unrealized gains/losses on cash flow hedges, net of tax 2,406 (930) 5,660 2,233
Net change in unrealized gains/losses on pension plans, net of tax (807) (862) 1,428 3,903
Net change in other comprehensive loss from unconsolidated subsidiaries 2,122 (439) 1,517 (601)
Other comprehensive (loss) income (101,443) 91,366 (50,930) 112,905
Comprehensive income 55,564   259,037  
Comprehensive income (loss) attributable to LKQ stockholders 55,564 242,280 259,037 400,097
Guarantors        
Condensed Financial Statements, Captions [Line Items]        
Net income 142,059   277,497  
Less: net income attributable to noncontrolling interest 0   0  
Net income attributable to LKQ stockholders 142,059 126,873 277,497 235,318
Other comprehensive income (loss):        
Foreign currency translation, net of tax (2,303) 10,097 (4,486) 13,975
Net change in unrealized gains/losses on cash flow hedges, net of tax 0 0 0 (133)
Net change in unrealized gains/losses on pension plans, net of tax (864) (448) 1,485 3,253
Net change in other comprehensive loss from unconsolidated subsidiaries 0 0 0 0
Other comprehensive (loss) income (3,167) 9,649 (5,971) 10,589
Comprehensive income 138,892   271,526  
Comprehensive income (loss) attributable to LKQ stockholders 138,892 136,522 271,526 245,907
Non-Guarantors        
Condensed Financial Statements, Captions [Line Items]        
Net income 28,734   58,017  
Less: net income attributable to noncontrolling interest 859   662  
Net income attributable to LKQ stockholders 27,875 41,983 57,355 89,436
Other comprehensive income (loss):        
Foreign currency translation, net of tax (106,610) 92,903 (57,555) 114,035
Net change in unrealized gains/losses on cash flow hedges, net of tax 0 0 0 0
Net change in unrealized gains/losses on pension plans, net of tax 57 (414) (57) 650
Net change in other comprehensive loss from unconsolidated subsidiaries 2,122 (439) 1,517 (601)
Other comprehensive (loss) income (104,431) 92,050 (55,981) 112,784
Comprehensive income (75,697)   2,036  
Less: comprehensive income attributable to noncontrolling interest 859   662  
Comprehensive income (loss) attributable to LKQ stockholders (76,556) 134,033 1,374 202,220
Eliminations        
Condensed Financial Statements, Captions [Line Items]        
Net income (169,934)   (334,852)  
Less: net income attributable to noncontrolling interest 0   0  
Net income attributable to LKQ stockholders (169,934) (168,856) (334,852) (324,754)
Other comprehensive income (loss):        
Foreign currency translation, net of tax 108,913 (103,000) 62,041 (128,010)
Net change in unrealized gains/losses on cash flow hedges, net of tax 0 0 0 133
Net change in unrealized gains/losses on pension plans, net of tax 807 862 (1,428) (3,903)
Net change in other comprehensive loss from unconsolidated subsidiaries (2,122) 439 (1,517) 601
Other comprehensive (loss) income 107,598 (101,699) 61,952 (123,373)
Comprehensive income (62,336)   (272,900)  
Comprehensive income (loss) attributable to LKQ stockholders $ (62,336) $ (270,555) $ (272,900) $ (448,127)
v3.10.0.1
Condensed Consolidating Balance Sheets (Details) - USD ($)
$ in Thousands
Jun. 30, 2018
Jan. 01, 2018
Dec. 31, 2017
Jun. 30, 2017
Current assets:        
Cash and cash equivalents $ 345,202   $ 279,766 $ 303,544
Receivables, net 1,301,514 $ 1,065,617 1,027,106  
Intercompany receivables, net 0   0  
Inventories 2,718,158   2,380,783  
Prepaid expenses and other current assets 228,732 178,987 134,479  
Total current assets 4,593,606   3,822,134  
Property, plant and equipment, net 1,188,464   913,089  
Intangible assets:        
Goodwill 4,421,976   3,536,511  
Other intangibles, net 973,031   743,769  
Investment in subsidiaries 0   0  
Intercompany notes receivable 0   0  
Equity method investments 202,653   208,404  
Other assets 168,901   142,965  
Total assets 11,548,631   9,366,872  
Current liabilities:        
Accounts payable 981,643   788,613  
Intercompany payables, net 0   0  
Accrued expenses:        
Accrued payroll-related liabilities 163,294   143,424  
Other accrued expenses 312,702   218,600  
Refund liability 103,694 $ 83,019 0  
Other current liabilities 49,603   45,727  
Current portion of long-term obligations 177,372   126,360  
Total current liabilities 1,788,308   1,322,724  
Long-term obligations, excluding current portion 4,261,176   3,277,620  
Intercompany notes payable 0   0  
Deferred income taxes 332,602   252,359  
Other noncurrent liabilities 389,570   307,516  
Total Company stockholders' equity 4,719,472   4,198,169  
Noncontrolling interest 57,503   8,484  
Total stockholders' equity 4,776,975   4,206,653  
Total liabilities and stockholders’ equity 11,548,631   9,366,872  
Parent        
Current assets:        
Cash and cash equivalents 33,859   34,360 27,445
Receivables, net 65   0  
Intercompany receivables, net 6,946   2,669  
Inventories 0   0  
Prepaid expenses and other current assets 32,457   34,136  
Total current assets 73,327   71,165  
Property, plant and equipment, net 979   910  
Intangible assets:        
Goodwill 0   0  
Other intangibles, net 0   0  
Investment in subsidiaries 5,573,396   5,952,687  
Intercompany notes receivable 1,094,619   1,156,550  
Equity method investments 0   0  
Other assets 86,030   70,590  
Total assets 6,828,351   7,251,902  
Current liabilities:        
Accounts payable 15,084   5,742  
Intercompany payables, net 0   0  
Accrued expenses:        
Accrued payroll-related liabilities 6,143   9,448  
Other accrued expenses 6,163   5,219  
Refund liability 0      
Other current liabilities 282   282  
Current portion of long-term obligations 24,886   16,468  
Total current liabilities 52,558   37,159  
Long-term obligations, excluding current portion 1,891,254   2,095,826  
Intercompany notes payable 0   750,000  
Deferred income taxes 12,251   12,402  
Other noncurrent liabilities 152,816   158,346  
Total Company stockholders' equity 4,719,472   4,198,169  
Total stockholders' equity 4,719,472   4,198,169  
Total liabilities and stockholders’ equity 6,828,351   7,251,902  
Guarantors        
Current assets:        
Cash and cash equivalents 38,302   35,131 45,865
Receivables, net 380,076   290,958  
Intercompany receivables, net 0   3,010  
Inventories 1,337,934   1,334,766  
Prepaid expenses and other current assets 95,198   44,849  
Total current assets 1,851,510   1,708,714  
Property, plant and equipment, net 578,952   563,262  
Intangible assets:        
Goodwill 2,005,253   2,010,209  
Other intangibles, net 284,460   291,036  
Investment in subsidiaries 108,485   102,931  
Intercompany notes receivable 26,716   782,638  
Equity method investments 336   336  
Other assets 37,286   33,597  
Total assets 4,892,998   5,492,723  
Current liabilities:        
Accounts payable 342,529   340,951  
Intercompany payables, net 28,589   230  
Accrued expenses:        
Accrued payroll-related liabilities 57,909   65,811  
Other accrued expenses 99,766   95,900  
Refund liability 53,660      
Other current liabilities 19,050   27,066  
Current portion of long-term obligations 1,561   1,912  
Total current liabilities 603,064   531,870  
Long-term obligations, excluding current portion 8,012   7,372  
Intercompany notes payable 637,495   677,708  
Deferred income taxes 115,736   116,021  
Other noncurrent liabilities 106,007   101,189  
Total Company stockholders' equity 3,422,684   4,058,563  
Total stockholders' equity 3,422,684   4,058,563  
Total liabilities and stockholders’ equity 4,892,998   5,492,723  
Non-Guarantors        
Current assets:        
Cash and cash equivalents 273,041   210,275 230,234
Receivables, net 921,373   736,148  
Intercompany receivables, net 28,589   230  
Inventories 1,380,224   1,046,017  
Prepaid expenses and other current assets 101,077   55,494  
Total current assets 2,704,304   2,048,164  
Property, plant and equipment, net 608,533   348,917  
Intangible assets:        
Goodwill 2,416,723   1,526,302  
Other intangibles, net 688,571   452,733  
Investment in subsidiaries 0   0  
Intercompany notes receivable 0   0  
Equity method investments 202,317   208,068  
Other assets 45,585   38,778  
Total assets 6,666,033   4,622,962  
Current liabilities:        
Accounts payable 624,030   441,920  
Intercompany payables, net 6,946   5,679  
Accrued expenses:        
Accrued payroll-related liabilities 99,242   68,165  
Other accrued expenses 206,773   117,481  
Refund liability 50,034      
Other current liabilities 30,271   18,379  
Current portion of long-term obligations 150,925   107,980  
Total current liabilities 1,168,221   759,604  
Long-term obligations, excluding current portion 2,361,910   1,174,422  
Intercompany notes payable 483,840   511,480  
Deferred income taxes 204,615   123,936  
Other noncurrent liabilities 130,747   47,981  
Total Company stockholders' equity 2,259,197   1,997,055  
Noncontrolling interest 57,503   8,484  
Total stockholders' equity 2,316,700   2,005,539  
Total liabilities and stockholders’ equity 6,666,033   4,622,962  
Eliminations        
Current assets:        
Cash and cash equivalents 0   0 $ 0
Receivables, net 0   0  
Intercompany receivables, net (35,535)   (5,909)  
Inventories 0   0  
Prepaid expenses and other current assets 0   0  
Total current assets (35,535)   (5,909)  
Property, plant and equipment, net 0   0  
Intangible assets:        
Goodwill 0   0  
Other intangibles, net 0   0  
Investment in subsidiaries (5,681,881)   (6,055,618)  
Intercompany notes receivable (1,121,335)   (1,939,188)  
Equity method investments 0   0  
Other assets 0   0  
Total assets (6,838,751)   (8,000,715)  
Current liabilities:        
Accounts payable 0   0  
Intercompany payables, net (35,535)   (5,909)  
Accrued expenses:        
Accrued payroll-related liabilities 0   0  
Other accrued expenses 0   0  
Refund liability 0      
Other current liabilities 0   0  
Current portion of long-term obligations 0   0  
Total current liabilities (35,535)   (5,909)  
Long-term obligations, excluding current portion 0   0  
Intercompany notes payable (1,121,335)   (1,939,188)  
Deferred income taxes 0   0  
Other noncurrent liabilities 0   0  
Total Company stockholders' equity (5,681,881)   (6,055,618)  
Total stockholders' equity (5,681,881)   (6,055,618)  
Total liabilities and stockholders’ equity $ (6,838,751)   $ (8,000,715)  
v3.10.0.1
Condensed Consolidating Statements of Cash Flows (Details) - USD ($)
$ in Thousands
3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2018
Jun. 30, 2017
Jun. 30, 2018
Jun. 30, 2017
Dec. 31, 2017
Dec. 31, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net cash provided by operating activities     $ 328,669 $ 362,097    
CASH FLOWS FROM INVESTING ACTIVITIES:            
Purchases of property, plant and equipment $ (53,232) $ (47,147) (115,421) (91,545)    
Investment and intercompany note activity with subsidiaries     0 0    
Acquisitions, net of cash acquired     (1,135,970) (100,728) $ (513,088)  
Proceeds from Divestiture of Businesses, Net of Cash Divested       301,297    
Payments of deferred purchase price on receivables securitization     0 0    
Other investing activities, net     2,174 4,712    
Net cash (used in) provided by investing activities     (1,249,217) 113,736    
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from exercise of stock options     2,922 5,151    
Taxes paid related to net share settlements of stock-based compensation awards     (3,834) (3,955)    
Debt issuance costs     (16,759)      
Proceeds from issuance of Euro Notes (2026/28)     1,232,100      
Borrowings under revolving credit facilities     613,658 162,794    
Repayments under revolving credit facilities     (766,597) (585,454)    
Repayments under term loans     (8,810) (18,590)    
Borrowings under receivables securitization facility       150    
(Repayments) borrowings of other debt, net     (2,444) (19,591)    
Payments of other obligations       (2,079)    
Other financing activities, net     4,107 4,316    
Investment and intercompany note activity with parent     0 0    
Dividends     0 0    
Net cash provided by (used in) financing activities     1,054,343 (423,076)    
Effect of exchange rate changes on cash and cash equivalents     (68,359) 16,271    
Net increase (decrease) in cash and equivalents     65,436 69,028    
Cash and cash equivalents of continuing operations, beginning of period         279,766 $ 227,400
Add: Cash and cash equivalents of discontinued operations, beginning of period       7,116 7,116  
Cash and cash equivalents of continuing and discontinued operations, beginning of period 345,202 303,544 345,202 303,544 279,766 234,516
Cash and cash equivalents, end of period 345,202 303,544 345,202 303,544 279,766  
Repayments under receivables securitization facility       (5,000)    
Parent            
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net cash provided by operating activities     149,253 156,127    
CASH FLOWS FROM INVESTING ACTIVITIES:            
Purchases of property, plant and equipment     (260) 64    
Investment and intercompany note activity with subsidiaries     48,339 (276,377)    
Acquisitions, net of cash acquired     0 0    
Proceeds from Divestiture of Businesses, Net of Cash Divested       0    
Payments of deferred purchase price on receivables securitization     0 0    
Other investing activities, net     (887) 0    
Net cash (used in) provided by investing activities     48,966 276,313    
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from exercise of stock options     2,922 5,151    
Taxes paid related to net share settlements of stock-based compensation awards     (3,834) 3,955    
Debt issuance costs     (682)      
Borrowings under revolving credit facilities     264,000 97,000    
Repayments under revolving credit facilities     (451,931) 515,931    
Repayments under term loans     (8,810) 18,590    
Borrowings under receivables securitization facility       0    
(Repayments) borrowings of other debt, net     (385) 1,700    
Payments of other obligations       0    
Other financing activities, net       0    
Investment and intercompany note activity with parent     0 0    
Dividends     0 0    
Net cash provided by (used in) financing activities     (198,720) (438,025)    
Effect of exchange rate changes on cash and cash equivalents     0 0    
Net increase (decrease) in cash and equivalents     (501) (5,585)    
Cash and cash equivalents of continuing operations, beginning of period         34,360 33,030
Cash and cash equivalents of continuing and discontinued operations, beginning of period           33,030
Cash and cash equivalents, end of period 33,859 27,445 33,859 27,445 34,360  
Repayments under receivables securitization facility       0    
Guarantors            
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net cash provided by operating activities     244,304 284,227    
CASH FLOWS FROM INVESTING ACTIVITIES:            
Purchases of property, plant and equipment     (62,744) 41,718    
Investment and intercompany note activity with subsidiaries     0 0    
Acquisitions, net of cash acquired     (2,527) 78,121    
Proceeds from Divestiture of Businesses, Net of Cash Divested       305,740    
Payments of deferred purchase price on receivables securitization     14,926 6,362    
Other investing activities, net     (423) (395)    
Net cash (used in) provided by investing activities     (49,922) 191,868    
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from exercise of stock options     0 0    
Taxes paid related to net share settlements of stock-based compensation awards     0 0    
Debt issuance costs     0      
Borrowings under revolving credit facilities     0 0    
Repayments under revolving credit facilities     0 0    
Repayments under term loans     0 0    
Borrowings under receivables securitization facility       0    
(Repayments) borrowings of other debt, net     289 1,161    
Payments of other obligations       (1,336)    
Other financing activities, net       5,000    
Investment and intercompany note activity with parent     (42,596) (269,668)    
Dividends     (148,099) 199,095    
Net cash provided by (used in) financing activities     (190,406) (466,260)    
Effect of exchange rate changes on cash and cash equivalents     (805) 521    
Net increase (decrease) in cash and equivalents     3,171 10,356    
Cash and cash equivalents of continuing operations, beginning of period         35,131 35,360
Cash and cash equivalents of continuing and discontinued operations, beginning of period           35,509
Cash and cash equivalents, end of period 38,302 45,865 38,302 45,865 35,131  
Repayments under receivables securitization facility       0    
Non-Guarantors            
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net cash provided by operating activities     68,285 114,476    
CASH FLOWS FROM INVESTING ACTIVITIES:            
Purchases of property, plant and equipment     (52,417) 49,763    
Investment and intercompany note activity with subsidiaries     0 0    
Acquisitions, net of cash acquired     (1,133,443) 22,607    
Proceeds from Divestiture of Businesses, Net of Cash Divested       (4,443)    
Payments of deferred purchase price on receivables securitization     0 0    
Other investing activities, net     (864) 5,107    
Net cash (used in) provided by investing activities     (1,184,996) (71,706)    
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from exercise of stock options     0 0    
Taxes paid related to net share settlements of stock-based compensation awards     0 0    
Debt issuance costs     (16,077)      
Proceeds from issuance of Euro Notes (2026/28)     1,232,100      
Borrowings under revolving credit facilities     349,658 65,794    
Repayments under revolving credit facilities     (314,666) 69,523    
Repayments under term loans     0 0    
Borrowings under receivables securitization facility       150    
(Repayments) borrowings of other debt, net     (2,348) (22,452)    
Payments of other obligations       (743)    
Other financing activities, net     4,107 (684)    
Investment and intercompany note activity with parent     (5,743) (6,709)    
Dividends     0 0    
Net cash provided by (used in) financing activities     1,247,031 5,737    
Effect of exchange rate changes on cash and cash equivalents     (67,554) 15,750    
Net increase (decrease) in cash and equivalents     62,766 64,257    
Cash and cash equivalents of continuing operations, beginning of period         210,275 159,010
Cash and cash equivalents of continuing and discontinued operations, beginning of period           165,977
Cash and cash equivalents, end of period 273,041 230,234 273,041 230,234 210,275  
Repayments under receivables securitization facility       (5,000)    
Continuing and Discontinued Operations            
CASH FLOWS FROM FINANCING ACTIVITIES:            
Add: Cash and cash equivalents of discontinued operations, beginning of period       7,116 7,116  
Continuing and Discontinued Operations | Parent            
CASH FLOWS FROM FINANCING ACTIVITIES:            
Add: Cash and cash equivalents of discontinued operations, beginning of period       0 0  
Continuing and Discontinued Operations | Guarantors            
CASH FLOWS FROM FINANCING ACTIVITIES:            
Add: Cash and cash equivalents of discontinued operations, beginning of period       149 149  
Continuing and Discontinued Operations | Non-Guarantors            
CASH FLOWS FROM FINANCING ACTIVITIES:            
Add: Cash and cash equivalents of discontinued operations, beginning of period       6,967 6,967  
Eliminations            
CASH FLOWS FROM OPERATING ACTIVITIES:            
Net cash provided by operating activities     (133,173) (192,733)    
CASH FLOWS FROM INVESTING ACTIVITIES:            
Purchases of property, plant and equipment     0 0    
Investment and intercompany note activity with subsidiaries     (48,339) 276,377    
Acquisitions, net of cash acquired     0 0    
Proceeds from Divestiture of Businesses, Net of Cash Divested       0    
Payments of deferred purchase price on receivables securitization     (14,926) (6,362)    
Other investing activities, net     0 0    
Net cash (used in) provided by investing activities     (63,265) (282,739)    
CASH FLOWS FROM FINANCING ACTIVITIES:            
Proceeds from exercise of stock options     0 0    
Taxes paid related to net share settlements of stock-based compensation awards     0 0    
Debt issuance costs     0      
Borrowings under revolving credit facilities     0 0    
Repayments under revolving credit facilities     0 0    
Repayments under term loans     0 0    
Borrowings under receivables securitization facility       0    
(Repayments) borrowings of other debt, net     0 0    
Payments of other obligations       0    
Other financing activities, net       0    
Investment and intercompany note activity with parent     48,339 276,377    
Dividends     148,099 (199,095)    
Net cash provided by (used in) financing activities     196,438 475,472    
Effect of exchange rate changes on cash and cash equivalents     0 0    
Net increase (decrease) in cash and equivalents     0 0    
Cash and cash equivalents of continuing operations, beginning of period         0 0
Add: Cash and cash equivalents of discontinued operations, beginning of period       0 0  
Cash and cash equivalents of continuing and discontinued operations, beginning of period           $ 0
Cash and cash equivalents, end of period $ 0 $ 0 $ 0 0 $ 0  
Repayments under receivables securitization facility       $ 0