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September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Aftermarket and refurbished products | $ | 1,070,673 | $ | 1,022,549 | |||
Salvage and remanufactured products | 393,954 | 411,298 | |||||
$ | 1,464,627 | $ | 1,433,847 |
North America | Europe | Specialty | Total | ||||||||||||
Balance as of January 1, 2015 | $ | 1,392,032 | $ | 616,819 | $ | 280,044 | $ | 2,288,895 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 76,284 | 20,980 | 3,989 | 101,253 | |||||||||||
Exchange rate effects | (14,730 | ) | (27,376 | ) | 50 | (42,056 | ) | ||||||||
Balance as of September 30, 2015 | $ | 1,453,586 | $ | 610,423 | $ | 284,083 | $ | 2,348,092 |
September 30, 2015 | December 31, 2014 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Trade names and trademarks | $ | 171,165 | $ | (41,480 | ) | $ | 129,685 | $ | 173,340 | $ | (35,538 | ) | $ | 137,802 | |||||||||
Customer relationships | 92,780 | (37,121 | ) | 55,659 | 92,972 | (26,751 | ) | 66,221 | |||||||||||||||
Software and other technology related assets | 44,465 | (16,028 | ) | 28,437 | 44,640 | (10,387 | ) | 34,253 | |||||||||||||||
Covenants not to compete | 10,937 | (5,086 | ) | 5,851 | 11,074 | (3,825 | ) | 7,249 | |||||||||||||||
$ | 319,347 | $ | (99,715 | ) | $ | 219,632 | $ | 322,026 | $ | (76,501 | ) | $ | 245,525 |
Balance as of January 1, 2015 | $ | 14,881 | |
Warranty expense | 26,294 | ||
Warranty claims | (23,517 | ) | |
Balance as of September 30, 2015 | $ | 17,658 |
|
Number Outstanding | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value (in thousands) (1) | ||||||||
Unvested as of January 1, 2015 | 2,151,232 | $ | 20.97 | $ | 60,493 | |||||
Granted | 915,386 | $ | 27.04 | |||||||
Vested | (994,130 | ) | $ | 19.87 | ||||||
Forfeited / Canceled | (81,563 | ) | $ | 24.54 | ||||||
Unvested as of September 30, 2015 | 1,990,925 | $ | 24.16 | $ | 56,463 | |||||
Expected to vest after September 30, 2015 | 1,935,514 | $ | 24.08 | $ | 54,891 |
Number Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) (1) | |||||||||
Balance as of January 1, 2015 | 5,207,772 | $ | 8.04 | 3.6 | $ | 105,038 | ||||||
Exercised | (1,324,150 | ) | $ | 6.21 | ||||||||
Forfeited / Canceled | (13,599 | ) | $ | 28.13 | ||||||||
Balance as of September 30, 2015 | 3,870,023 | $ | 8.59 | 3.1 | $ | 76,891 | ||||||
Exercisable as of September 30, 2015 | 3,775,341 | $ | 7.99 | 3.1 | $ | 76,891 | ||||||
Exercisable as of September 30, 2015 and expected to vest thereafter | 3,860,555 | $ | 8.53 | 3.1 | $ | 76,891 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
RSUs | $ | 5,119 | $ | 4,434 | $ | 16,067 | $ | 14,625 | |||||||
Stock options | 58 | 703 | 224 | 2,203 | |||||||||||
Restricted stock | — | 47 | — | 139 | |||||||||||
Total stock-based compensation expense | $ | 5,177 | $ | 5,184 | $ | 16,291 | $ | 16,967 |
|
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Senior secured credit agreement: | |||||||
Term loans payable | $ | 416,250 | $ | 433,125 | |||
Revolving credit facilities | 475,308 | 663,912 | |||||
Senior notes | 600,000 | 600,000 | |||||
Receivables securitization facility | 89,800 | 94,900 | |||||
Notes payable through November 2019 at weighted average interest rates of 1.1% and 1.0%, respectively | 13,875 | 45,891 | |||||
Other long-term debt at weighted average interest rates of 4.2% and 3.1%, respectively | 11,997 | 26,734 | |||||
1,607,230 | 1,864,562 | ||||||
Less current maturities | (37,174 | ) | (63,515 | ) | |||
$ | 1,570,056 | $ | 1,801,047 |
|
Notional Amount | Fair Value at September 30, 2015 (USD) | Fair Value at December 31, 2014 (USD) | ||||||||||||||||||||||
September 30, 2015 | December 31, 2014 | Other Accrued Expenses | Other Noncurrent Liabilities | Other Accrued Expenses | Other Noncurrent Liabilities | |||||||||||||||||||
Interest rate swap agreements | ||||||||||||||||||||||||
USD denominated | $ | 420,000 | $ | 420,000 | $ | 140 | $ | 1,519 | $ | 2,691 | $ | 1,615 | ||||||||||||
GBP denominated | £ | 50,000 | £ | 50,000 | — | 653 | — | 893 | ||||||||||||||||
CAD denominated | C$ | 25,000 | C$ | 25,000 | 62 | — | — | 19 | ||||||||||||||||
Total cash flow hedges | $ | 202 | $ | 2,172 | $ | 2,691 | $ | 2,527 |
|
Balance as of September 30, 2015 | Fair Value Measurements as of September 30, 2015 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||
Cash surrender value of life insurance | $ | 28,787 | $ | — | $ | 28,787 | $ | — | |||||||
Total Assets | $ | 28,787 | $ | — | $ | 28,787 | $ | — | |||||||
Liabilities: | |||||||||||||||
Contingent consideration liabilities | $ | 4,548 | $ | — | $ | — | $ | 4,548 | |||||||
Deferred compensation liabilities | 28,388 | — | 28,388 | — | |||||||||||
Interest rate swaps | 2,374 | — | 2,374 | — | |||||||||||
Total Liabilities | $ | 35,310 | $ | — | $ | 30,762 | $ | 4,548 |
Balance as of December 31, 2014 | Fair Value Measurements as of December 31, 2014 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||
Cash surrender value of life insurance | $ | 28,242 | $ | — | $ | 28,242 | $ | — | |||||||
Total Assets | $ | 28,242 | $ | — | $ | 28,242 | $ | — | |||||||
Liabilities: | |||||||||||||||
Contingent consideration liabilities | $ | 7,295 | $ | — | $ | — | $ | 7,295 | |||||||
Deferred compensation liabilities | 27,580 | — | 27,580 | — | |||||||||||
Interest rate swaps | 5,218 | — | 5,218 | — | |||||||||||
Total Liabilities | $ | 40,093 | $ | — | $ | 32,798 | $ | 7,295 |
September 30, | December 31, | ||||
2015 | 2014 | ||||
Unobservable Input | (Weighted Average) | ||||
Probability of achieving payout targets | 75.9 | % | 79.1 | % | |
Discount rate | 7.5 | % | 7.5 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Beginning Balance | $ | 5,191 | $ | 8,762 | $ | 7,295 | $ | 55,653 | |||||||
Contingent consideration liabilities recorded for business acquisitions | — | (1,203 | ) | — | 5,854 | ||||||||||
Payments | (610 | ) | — | (2,815 | ) | (52,305 | ) | ||||||||
Increase (decrease) in fair value included in earnings | 89 | 12 | 365 | (2,000 | ) | ||||||||||
Exchange rate effects | (122 | ) | (270 | ) | (297 | ) | 99 | ||||||||
Ending Balance | $ | 4,548 | $ | 7,301 | $ | 4,548 | $ | 7,301 |
|
Three months ending December 31, 2015 | $ | 40,241 | |
Years ending December 31: | |||
2016 | 146,774 | ||
2017 | 124,121 | ||
2018 | 102,397 | ||
2019 | 82,568 | ||
2020 | 66,396 | ||
Thereafter | 232,894 | ||
Future Minimum Lease Payments | $ | 795,391 |
|
Nine Months Ended | Year Ended | ||||||||||||||
September 30, 2015 | December 31, 2014 | ||||||||||||||
All Acquisitions | Keystone Specialty | Other Acquisitions | Total | ||||||||||||
Receivables | $ | 35,870 | $ | 48,473 | $ | 75,330 | $ | 123,803 | |||||||
Receivable reserves | (1,167 | ) | (7,748 | ) | (7,383 | ) | (15,131 | ) | |||||||
Inventory | 79,234 | 150,696 | 123,815 | 274,511 | |||||||||||
Income taxes receivable | — | 14,096 | — | 14,096 | |||||||||||
Prepaid expenses and other current assets | 3,352 | 8,085 | 4,050 | 12,135 | |||||||||||
Property and equipment | 8,671 | 38,080 | 27,026 | 65,106 | |||||||||||
Goodwill | 101,253 | 237,729 | 177,974 | 415,703 | |||||||||||
Other intangibles | 3,456 | 78,110 | 51,135 | 129,245 | |||||||||||
Other assets | 3,748 | 6,159 | 2,793 | 8,952 | |||||||||||
Deferred income taxes | 2,243 | (26,591 | ) | 313 | (26,278 | ) | |||||||||
Current liabilities assumed | (48,918 | ) | (63,513 | ) | (52,961 | ) | (116,474 | ) | |||||||
Debt assumed | (2,373 | ) | — | (32,441 | ) | (32,441 | ) | ||||||||
Other noncurrent liabilities assumed | (832 | ) | (11,675 | ) | (10,573 | ) | (22,248 | ) | |||||||
Contingent consideration liabilities | — | — | (5,854 | ) | (5,854 | ) | |||||||||
Other purchase price obligations | (22,077 | ) | (13,351 | ) | (333 | ) | (13,684 | ) | |||||||
Notes issued | (4,148 | ) | (31,500 | ) | (13,535 | ) | (45,035 | ) | |||||||
Settlement of pre-existing balances | (1,073 | ) | — | (5,052 | ) | (5,052 | ) | ||||||||
Cash used in acquisitions, net of cash acquired | $ | 157,239 | $ | 427,050 | $ | 334,304 | $ | 761,354 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue, as reported | $ | 1,831,732 | $ | 1,721,024 | $ | 5,443,714 | $ | 5,055,933 | |||||||
Revenue of purchased businesses for the period prior to acquisition: | |||||||||||||||
Keystone Specialty | — | — | — | 3,443 | |||||||||||
Other acquisitions | 28,065 | 176,693 | 209,834 | 582,344 | |||||||||||
Pro forma revenue | $ | 1,859,797 | $ | 1,897,717 | $ | 5,653,548 | $ | 5,641,720 | |||||||
Net income, as reported | $ | 101,346 | $ | 91,515 | $ | 328,163 | $ | 301,050 | |||||||
Net income of purchased businesses for the period prior to acquisition, and pro forma purchase accounting adjustments: | |||||||||||||||
Keystone Specialty | — | 144 | — | 497 | |||||||||||
Other acquisitions | (288 | ) | 6,841 | 5,501 | 17,872 | ||||||||||
Pro forma net income | $ | 101,058 | $ | 98,500 | $ | 333,664 | $ | 319,419 | |||||||
Earnings per share, basic—as reported | $ | 0.33 | $ | 0.30 | $ | 1.08 | $ | 1.00 | |||||||
Effect of purchased businesses for the period prior to acquisition: | |||||||||||||||
Keystone Specialty | — | 0.00 | — | 0.00 | |||||||||||
Other acquisitions | (0.00 | ) | 0.02 | 0.02 | 0.06 | ||||||||||
Pro forma earnings per share, basic (1) | $ | 0.33 | $ | 0.32 | $ | 1.10 | $ | 1.06 | |||||||
Earnings per share, diluted—as reported | $ | 0.33 | $ | 0.30 | $ | 1.07 | $ | 0.98 | |||||||
Effect of purchased businesses for the period prior to acquisition: | |||||||||||||||
Keystone Specialty | — | 0.00 | — | 0.00 | |||||||||||
Other acquisitions | (0.00 | ) | 0.02 | 0.02 | 0.06 | ||||||||||
Pro forma earnings per share, diluted (1) | $ | 0.33 | $ | 0.32 | $ | 1.09 | $ | 1.04 |
|
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Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | |||||||||||||||||||||||||||||||
Foreign Currency Translation | Unrealized (Loss) Gain on Cash Flow Hedges | Unrealized (Loss) Gain on Pension Plan | Accumulated Other Comprehensive (Loss) Income | Foreign Currency Translation | Unrealized (Loss) Gain on Cash Flow Hedges | Unrealized Gain (Loss) on Pension Plan | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Beginning balance | $ | (37,373 | ) | $ | (2,200 | ) | $ | (9,644 | ) | $ | (49,217 | ) | $ | 40,222 | $ | (4,346 | ) | $ | 634 | $ | 36,510 | |||||||||||
Pretax (loss)income | (33,458 | ) | (575 | ) | — | (34,033 | ) | (39,329 | ) | (186 | ) | — | (39,515 | ) | ||||||||||||||||||
Income tax effect | — | 185 | — | 185 | — | (7 | ) | — | (7 | ) | ||||||||||||||||||||||
Reclassification of unrealized gain(loss) | — | 1,542 | (34 | ) | 1,508 | — | 1,554 | (39 | ) | 1,515 | ||||||||||||||||||||||
Reclassification of deferred income taxes | — | (540 | ) | 9 | (531 | ) | — | (544 | ) | 9 | (535 | ) | ||||||||||||||||||||
Ending Balance | $ | (70,831 | ) | $ | (1,588 | ) | $ | (9,669 | ) | $ | (82,088 | ) | $ | 893 | $ | (3,529 | ) | $ | 604 | $ | (2,032 | ) |
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | |||||||||||||||||||||||||||||||
Foreign Currency Translation | Unrealized (Loss) Gain on Cash Flow Hedges | Unrealized (Loss) Gain on Pension Plan | Accumulated Other Comprehensive (Loss) Income | Foreign Currency Translation | Unrealized (Loss) Gain on Cash Flow Hedges | Unrealized Gain (Loss) on Pension Plan | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Beginning balance | $ | (27,073 | ) | $ | (3,401 | ) | $ | (9,751 | ) | $ | (40,225 | ) | $ | 24,906 | $ | (5,596 | ) | $ | 701 | $ | 20,011 | |||||||||||
Pretax (loss) income | (43,758 | ) | (1,814 | ) | — | (45,572 | ) | (24,013 | ) | (362 | ) | — | (24,375 | ) | ||||||||||||||||||
Income tax effect | — | 624 | — | 624 | — | 39 | — | 39 | ||||||||||||||||||||||||
Reclassification of unrealized gain(loss) | — | 4,627 | 109 | 4,736 | — | 3,647 | (129 | ) | 3,518 | |||||||||||||||||||||||
Reclassification of deferred income taxes | — | (1,624 | ) | (27 | ) | (1,651 | ) | — | (1,257 | ) | 32 | (1,225 | ) | |||||||||||||||||||
Ending Balance | $ | (70,831 | ) | $ | (1,588 | ) | $ | (9,669 | ) | $ | (82,088 | ) | $ | 893 | $ | (3,529 | ) | $ | 604 | $ | (2,032 | ) |
|
North America | Europe | Specialty | Eliminations | Consolidated | |||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 1,037,130 | $ | 511,146 | $ | 283,456 | $ | — | $ | 1,831,732 | |||||||||
Intersegment | 160 | — | 850 | (1,010 | ) | — | |||||||||||||
Total segment revenue | $ | 1,037,290 | $ | 511,146 | $ | 284,306 | $ | (1,010 | ) | $ | 1,831,732 | ||||||||
Segment EBITDA | $ | 128,506 | $ | 52,733 | $ | 26,075 | $ | — | $ | 207,314 | |||||||||
Depreciation and amortization (1) | 17,918 | 9,478 | 5,578 | — | 32,974 | ||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 1,024,835 | $ | 495,776 | $ | 200,413 | $ | — | $ | 1,721,024 | |||||||||
Intersegment | 132 | — | 594 | (726 | ) | — | |||||||||||||
Total segment revenue | $ | 1,024,967 | $ | 495,776 | $ | 201,007 | $ | (726 | ) | $ | 1,721,024 | ||||||||
Segment EBITDA | $ | 131,851 | $ | 41,726 | $ | 17,977 | $ | — | $ | 191,554 | |||||||||
Depreciation and amortization (1) | 18,029 | 9,411 | 4,314 | — | 31,754 |
North America | Europe | Specialty | Eliminations | Consolidated | |||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 3,127,988 | $ | 1,508,325 | $ | 807,401 | $ | — | $ | 5,443,714 | |||||||||
Intersegment | 626 | 70 | 2,457 | (3,153 | ) | — | |||||||||||||
Total segment revenue | $ | 3,128,614 | $ | 1,508,395 | $ | 809,858 | $ | (3,153 | ) | $ | 5,443,714 | ||||||||
Segment EBITDA | $ | 416,774 | $ | 153,199 | $ | 91,677 | $ | — | $ | 661,650 | |||||||||
Depreciation and amortization (1) | 52,432 | 26,533 | 15,723 | — | 94,688 | ||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 3,080,090 | $ | 1,380,663 | $ | 595,180 | $ | — | $ | 5,055,933 | |||||||||
Intersegment | 266 | — | 1,250 | (1,516 | ) | — | |||||||||||||
Total segment revenue | $ | 3,080,356 | $ | 1,380,663 | $ | 596,430 | $ | (1,516 | ) | $ | 5,055,933 | ||||||||
Segment EBITDA | $ | 415,139 | $ | 128,826 | $ | 64,137 | $ | — | $ | 608,102 | |||||||||
Depreciation and amortization (1) | 52,682 | 24,868 | 13,097 | — | 90,647 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Segment EBITDA | $ | 207,314 | $ | 191,554 | $ | 661,650 | $ | 608,102 | |||||||
Deduct: | |||||||||||||||
Restructuring and acquisition related expenses (1) | 4,578 | 3,594 | 12,729 | 12,816 | |||||||||||
Change in fair value of contingent consideration liabilities (2) | 89 | 12 | 365 | (2,000 | ) | ||||||||||
Add: | |||||||||||||||
Equity in earnings of unconsolidated subsidiaries | (1,130 | ) | (721 | ) | (4,200 | ) | (1,199 | ) | |||||||
EBITDA | 201,517 | 187,227 | 644,356 | 596,087 | |||||||||||
Depreciation and amortization - cost of goods sold | 2,091 | 1,256 | 4,570 | 3,511 | |||||||||||
Depreciation and amortization | 30,883 | 30,498 | 90,118 | 87,136 | |||||||||||
Interest expense, net | 14,722 | 16,394 | 44,250 | 48,140 | |||||||||||
Loss on debt extinguishment | — | — | — | 324 | |||||||||||
Provision for income taxes | 52,475 | 47,564 | 177,255 | 155,926 | |||||||||||
Net income | $ | 101,346 | $ | 91,515 | $ | 328,163 | $ | 301,050 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Capital Expenditures | |||||||||||||||
North America | $ | 11,615 | $ | 20,986 | $ | 41,762 | $ | 61,262 | |||||||
Europe | 16,966 | 8,652 | 47,138 | 32,927 | |||||||||||
Specialty | 4,229 | 3,222 | 10,673 | 6,002 | |||||||||||
$ | 32,810 | $ | 32,860 | $ | 99,573 | $ | 100,191 |
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Receivables, net | |||||||
North America | $ | 322,954 | $ | 322,713 | |||
Europe | 222,445 | 227,987 | |||||
Specialty | 81,381 | 50,722 | |||||
Total receivables, net | 626,780 | 601,422 | |||||
Inventory | |||||||
North America | 808,679 | 826,429 | |||||
Europe | 402,830 | 402,488 | |||||
Specialty | 253,118 | 204,930 | |||||
Total inventory | 1,464,627 | 1,433,847 | |||||
Property and Equipment, net | |||||||
North America | 450,748 | 456,288 | |||||
Europe | 152,881 | 128,309 | |||||
Specialty | 49,151 | 45,390 | |||||
Total property and equipment, net | 652,780 | 629,987 | |||||
Other unallocated assets | 2,959,845 | 2,908,236 | |||||
Total assets | $ | 5,704,032 | $ | 5,573,492 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue | |||||||||||||||
United States | $ | 1,229,958 | $ | 1,126,468 | $ | 3,653,326 | $ | 3,369,636 | |||||||
United Kingdom | 358,925 | 349,012 | 1,049,596 | 1,003,889 | |||||||||||
Other countries | 242,849 | 245,544 | 740,792 | 682,408 | |||||||||||
$ | 1,831,732 | $ | 1,721,024 | $ | 5,443,714 | $ | 5,055,933 |
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Long-lived Assets | |||||||
United States | $ | 471,549 | $ | 469,450 | |||
United Kingdom | 118,357 | 92,813 | |||||
Other countries | 62,874 | 67,724 | |||||
$ | 652,780 | $ | 629,987 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Aftermarket, other new and refurbished products | $ | 1,307,399 | $ | 1,171,706 | $ | 3,850,038 | $ | 3,445,376 | |||||||
Recycled, remanufactured and related products and services | 401,292 | 371,632 | 1,207,917 | 1,108,376 | |||||||||||
Other | 123,041 | 177,686 | 385,759 | 502,181 | |||||||||||
$ | 1,831,732 | $ | 1,721,024 | $ | 5,443,714 | $ | 5,055,933 |
|
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Balance Sheets (In thousands) | |||||||||||||||||||
September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and equivalents | $ | 17,679 | $ | 37,014 | $ | 82,393 | $ | — | $ | 137,086 | |||||||||
Receivables, net | — | 246,035 | 380,745 | — | 626,780 | ||||||||||||||
Intercompany receivables, net | 3,470 | — | 11,354 | (14,824 | ) | — | |||||||||||||
Inventory | — | 992,340 | 472,287 | — | 1,464,627 | ||||||||||||||
Deferred income taxes | 3,123 | 71,356 | 2,922 | — | 77,401 | ||||||||||||||
Prepaid expenses and other current assets | 548 | 40,005 | 40,696 | — | 81,249 | ||||||||||||||
Total Current Assets | 24,820 | 1,386,750 | 990,397 | (14,824 | ) | 2,387,143 | |||||||||||||
Property and Equipment, net | 377 | 472,864 | 179,539 | — | 652,780 | ||||||||||||||
Intangible Assets: | |||||||||||||||||||
Goodwill | — | 1,650,053 | 698,039 | — | 2,348,092 | ||||||||||||||
Other intangibles, net | — | 141,644 | 77,988 | — | 219,632 | ||||||||||||||
Investment in Subsidiaries | 3,385,478 | 288,999 | — | (3,674,477 | ) | — | |||||||||||||
Intercompany Notes Receivable | 651,424 | 27,252 | — | (678,676 | ) | — | |||||||||||||
Other Assets | 47,593 | 28,937 | 22,894 | (3,039 | ) | 96,385 | |||||||||||||
Total Assets | $ | 4,109,692 | $ | 3,996,499 | $ | 1,968,857 | $ | (4,371,016 | ) | $ | 5,704,032 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Accounts payable | $ | 1,414 | $ | 206,446 | $ | 208,481 | $ | — | $ | 416,341 | |||||||||
Intercompany payables, net | — | 11,354 | 3,470 | (14,824 | ) | — | |||||||||||||
Accrued expenses: | |||||||||||||||||||
Accrued payroll-related liabilities | 6,448 | 56,682 | 31,884 | — | 95,014 | ||||||||||||||
Other accrued expenses | 13,183 | 85,727 | 86,162 | — | 185,072 | ||||||||||||||
Other current liabilities | 1,396 | 37,358 | 25,343 | — | 64,097 | ||||||||||||||
Current portion of long-term obligations | 22,650 | 1,905 | 12,619 | — | 37,174 | ||||||||||||||
Total Current Liabilities | 45,091 | 399,472 | 367,959 | (14,824 | ) | 797,698 | |||||||||||||
Long-Term Obligations, Excluding Current Portion | 995,450 | 4,643 | 569,963 | — | 1,570,056 | ||||||||||||||
Intercompany Notes Payable | — | 635,594 | 43,082 | (678,676 | ) | — | |||||||||||||
Deferred Income Taxes | — | 163,107 | 15,242 | (3,039 | ) | 175,310 | |||||||||||||
Other Noncurrent Liabilities | 32,438 | 67,430 | 24,387 | — | 124,255 | ||||||||||||||
Stockholders’ Equity | 3,036,713 | 2,726,253 | 948,224 | (3,674,477 | ) | 3,036,713 | |||||||||||||
Total Liabilities and Stockholders' Equity | $ | 4,109,692 | $ | 3,996,499 | $ | 1,968,857 | $ | (4,371,016 | ) | $ | 5,704,032 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Balance Sheets (In thousands) | |||||||||||||||||||
December 31, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and equivalents | $ | 14,930 | $ | 32,103 | $ | 67,572 | $ | — | $ | 114,605 | |||||||||
Receivables, net | 145 | 217,542 | 383,735 | — | 601,422 | ||||||||||||||
Intercompany receivables, net | 1,360 | — | 8,048 | (9,408 | ) | — | |||||||||||||
Inventory | — | 964,477 | 469,370 | — | 1,433,847 | ||||||||||||||
Deferred income taxes | 4,064 | 62,850 | 10,215 | 4,615 | 81,744 | ||||||||||||||
Prepaid expenses and other current assets | 20,640 | 36,553 | 28,606 | — | 85,799 | ||||||||||||||
Total Current Assets | 41,139 | 1,313,525 | 967,546 | (4,793 | ) | 2,317,417 | |||||||||||||
Property and Equipment, net | 494 | 470,791 | 158,702 | — | 629,987 | ||||||||||||||
Intangible Assets: | |||||||||||||||||||
Goodwill | — | 1,563,796 | 725,099 | — | 2,288,895 | ||||||||||||||
Other intangibles, net | — | 155,819 | 89,706 | — | 245,525 | ||||||||||||||
Investment in Subsidiaries | 3,216,039 | 279,967 | — | (3,496,006 | ) | — | |||||||||||||
Intercompany Notes Receivable | 667,949 | 23,449 | — | (691,398 | ) | — | |||||||||||||
Other Assets | 49,601 | 24,457 | 20,481 | (2,871 | ) | 91,668 | |||||||||||||
Total Assets | $ | 3,975,222 | $ | 3,831,804 | $ | 1,961,534 | $ | (4,195,068 | ) | $ | 5,573,492 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Accounts payable | $ | 682 | $ | 182,607 | $ | 216,913 | $ | — | $ | 400,202 | |||||||||
Intercompany payables, net | — | 8,048 | 1,360 | (9,408 | ) | — | |||||||||||||
Accrued expenses: | |||||||||||||||||||
Accrued payroll-related liabilities | 8,075 | 48,850 | 29,091 | — | 86,016 | ||||||||||||||
Other accrued expenses | 8,061 | 83,857 | 72,230 | — | 164,148 | ||||||||||||||
Other current liabilities | 283 | 16,197 | 15,720 | 4,615 | 36,815 | ||||||||||||||
Current portion of long-term obligations | 55,172 | 4,599 | 3,744 | — | 63,515 | ||||||||||||||
Total Current Liabilities | 72,273 | 344,158 | 339,058 | (4,793 | ) | 750,696 | |||||||||||||
Long-Term Obligations, Excluding Current Portion | 1,150,624 | 6,561 | 643,862 | — | 1,801,047 | ||||||||||||||
Intercompany Notes Payable | — | 649,824 | 41,574 | (691,398 | ) | — | |||||||||||||
Deferred Income Taxes | — | 156,727 | 27,806 | (2,871 | ) | 181,662 | |||||||||||||
Other Noncurrent Liabilities | 31,668 | 60,213 | 27,549 | — | 119,430 | ||||||||||||||
Stockholders’ Equity | 2,720,657 | 2,614,321 | 881,685 | (3,496,006 | ) | 2,720,657 | |||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,975,222 | $ | 3,831,804 | $ | 1,961,534 | $ | (4,195,068 | ) | $ | 5,573,492 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
For the Three Months Ended September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 1,263,397 | $ | 595,769 | $ | (27,434 | ) | $ | 1,831,732 | ||||||||
Cost of goods sold | — | 773,957 | 372,430 | (27,434 | ) | 1,118,953 | |||||||||||||
Gross margin | — | 489,440 | 223,339 | — | 712,779 | ||||||||||||||
Facility and warehouse expenses | — | 106,090 | 37,828 | — | 143,918 | ||||||||||||||
Distribution expenses | — | 105,519 | 53,249 | — | 158,768 | ||||||||||||||
Selling, general and administrative expenses | 8,484 | 124,678 | 74,725 | — | 207,887 | ||||||||||||||
Restructuring and acquisition related expenses | — | 3,754 | 824 | — | 4,578 | ||||||||||||||
Depreciation and amortization | 38 | 21,133 | 9,712 | — | 30,883 | ||||||||||||||
Operating (loss) income | (8,522 | ) | 128,266 | 47,001 | — | 166,745 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense, net | 12,049 | 460 | 2,213 | — | 14,722 | ||||||||||||||
Intercompany interest (income) expense, net | (10,146 | ) | 7,183 | 2,963 | — | — | |||||||||||||
Change in fair value of contingent consideration liabilities | — | 56 | 33 | — | 89 | ||||||||||||||
Other expense (income), net | 8 | (2,497 | ) | (528 | ) | — | (3,017 | ) | |||||||||||
Total other expense, net | 1,911 | 5,202 | 4,681 | — | 11,794 | ||||||||||||||
(Loss) income before (benefit) provision for income taxes | (10,433 | ) | 123,064 | 42,320 | — | 154,951 | |||||||||||||
(Benefit) provision for income taxes | (4,012 | ) | 48,089 | 8,398 | — | 52,475 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 17 | (1,147 | ) | — | (1,130 | ) | ||||||||||||
Equity in earnings of subsidiaries | 107,767 | 6,328 | — | (114,095 | ) | — | |||||||||||||
Net income | $ | 101,346 | $ | 81,320 | $ | 32,775 | $ | (114,095 | ) | $ | 101,346 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 1,165,794 | $ | 588,852 | $ | (33,622 | ) | $ | 1,721,024 | ||||||||
Cost of goods sold | — | 709,985 | 380,250 | (33,622 | ) | 1,056,613 | |||||||||||||
Gross margin | — | 455,809 | 208,602 | — | 664,411 | ||||||||||||||
Facility and warehouse expenses | — | 95,619 | 37,711 | — | 133,330 | ||||||||||||||
Distribution expenses | — | 98,457 | 50,115 | — | 148,572 | ||||||||||||||
Selling, general and administrative expenses | 5,178 | 114,926 | 72,125 | — | 192,229 | ||||||||||||||
Restructuring and acquisition related expenses | — | 882 | 2,712 | — | 3,594 | ||||||||||||||
Depreciation and amortization | 50 | 19,592 | 10,856 | — | 30,498 | ||||||||||||||
Operating (loss) income | (5,228 | ) | 126,333 | 35,083 | — | 156,188 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense, net | 12,338 | 71 | 3,985 | — | 16,394 | ||||||||||||||
Intercompany interest (income) expense, net | (12,638 | ) | 6,207 | 6,431 | — | — | |||||||||||||
Change in fair value of contingent consideration liabilities | — | 54 | (42 | ) | — | 12 | |||||||||||||
Other expense (income), net | 155 | (1,164 | ) | 991 | — | (18 | ) | ||||||||||||
Total other expense, net | (145 | ) | 5,168 | 11,365 | — | 16,388 | |||||||||||||
(Loss) income before (benefit) provision for income taxes | (5,083 | ) | 121,165 | 23,718 | — | 139,800 | |||||||||||||
(Benefit) provision for income taxes | (1,363 | ) | 43,986 | 4,941 | — | 47,564 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 20 | (741 | ) | — | (721 | ) | ||||||||||||
Equity in earnings of subsidiaries | 95,235 | 6,151 | — | (101,386 | ) | — | |||||||||||||
Net income | $ | 91,515 | $ | 83,350 | $ | 18,036 | $ | (101,386 | ) | $ | 91,515 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 3,758,846 | $ | 1,778,456 | $ | (93,588 | ) | $ | 5,443,714 | ||||||||
Cost of goods sold | — | 2,284,786 | 1,116,314 | (93,588 | ) | 3,307,512 | |||||||||||||
Gross margin | — | 1,474,060 | 662,142 | — | 2,136,202 | ||||||||||||||
Facility and warehouse expenses | — | 304,140 | 108,814 | — | 412,954 | ||||||||||||||
Distribution expenses | — | 304,264 | 146,257 | — | 450,521 | ||||||||||||||
Selling, general and administrative expenses | 24,876 | 366,298 | 225,750 | — | 616,924 | ||||||||||||||
Restructuring and acquisition related expenses | — | 10,999 | 1,730 | — | 12,729 | ||||||||||||||
Depreciation and amortization | 117 | 60,897 | 29,104 | — | 90,118 | ||||||||||||||
Operating (loss) income | (24,993 | ) | 427,462 | 150,487 | — | 552,956 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense, net | 36,604 | 331 | 7,315 | — | 44,250 | ||||||||||||||
Intercompany interest (income) expense, net | (31,347 | ) | 21,498 | 9,849 | — | — | |||||||||||||
Change in fair value of contingent consideration liabilities | — | 166 | 199 | — | 365 | ||||||||||||||
Other expense (income), net | 35 | (5,448 | ) | 4,136 | — | (1,277 | ) | ||||||||||||
Total other expense, net | 5,292 | 16,547 | 21,499 | — | 43,338 | ||||||||||||||
(Loss) income before (benefit) provision for income taxes | (30,285 | ) | 410,915 | 128,988 | — | 509,618 | |||||||||||||
(Benefit) provision for income taxes | (12,061 | ) | 163,361 | 25,955 | — | 177,255 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 47 | (4,247 | ) | — | (4,200 | ) | ||||||||||||
Equity in earnings of subsidiaries | 346,387 | 20,923 | — | (367,310 | ) | — | |||||||||||||
Net income | $ | 328,163 | $ | 268,524 | $ | 98,786 | $ | (367,310 | ) | $ | 328,163 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 3,486,098 | $ | 1,665,247 | $ | (95,412 | ) | $ | 5,055,933 | ||||||||
Cost of goods sold | — | 2,107,866 | 1,056,125 | (95,412 | ) | 3,068,579 | |||||||||||||
Gross margin | — | 1,378,232 | 609,122 | — | 1,987,354 | ||||||||||||||
Facility and warehouse expenses | — | 281,805 | 106,190 | — | 387,995 | ||||||||||||||
Distribution expenses | — | 291,187 | 141,258 | — | 432,445 | ||||||||||||||
Selling, general and administrative expenses | 20,188 | 342,038 | 201,118 | — | 563,344 | ||||||||||||||
Restructuring and acquisition related expenses | — | 7,366 | 5,450 | — | 12,816 | ||||||||||||||
Depreciation and amortization | 168 | 58,556 | 28,412 | — | 87,136 | ||||||||||||||
Operating (loss) income | (20,356 | ) | 397,280 | 126,694 | — | 503,618 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense, net | 38,583 | 186 | 9,371 | — | 48,140 | ||||||||||||||
Intercompany interest (income) expense, net | (35,828 | ) | 16,279 | 19,549 | — | — | |||||||||||||
Loss on debt extinguishment | 324 | — | — | — | 324 | ||||||||||||||
Change in fair value of contingent consideration liabilities | — | (2,183 | ) | 183 | — | (2,000 | ) | ||||||||||||
Other expense (income), net | 81 | (4,542 | ) | 3,440 | — | (1,021 | ) | ||||||||||||
Total other expense, net | 3,160 | 9,740 | 32,543 | — | 45,443 | ||||||||||||||
(Loss) income before (benefit) provision for income taxes | (23,516 | ) | 387,540 | 94,151 | — | 458,175 | |||||||||||||
(Benefit) provision for income taxes | (8,665 | ) | 144,725 | 19,866 | — | 155,926 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 35 | (1,234 | ) | — | (1,199 | ) | ||||||||||||
Equity in earnings of subsidiaries | 315,901 | 24,528 | — | (340,429 | ) | — | |||||||||||||
Net income | $ | 301,050 | $ | 267,378 | $ | 73,051 | $ | (340,429 | ) | $ | 301,050 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
For the Three Months Ended September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 101,346 | $ | 81,320 | $ | 32,775 | $ | (114,095 | ) | $ | 101,346 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Foreign currency translation | (33,458 | ) | (11,459 | ) | (32,073 | ) | 43,532 | (33,458 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 612 | — | 14 | (14 | ) | 612 | |||||||||||||
Net change in unrealized gains/losses on pension plan, net of tax | (25 | ) | — | (25 | ) | 25 | (25 | ) | |||||||||||
Total other comprehensive loss | (32,871 | ) | (11,459 | ) | (32,084 | ) | 43,543 | (32,871 | ) | ||||||||||
Total comprehensive income | $ | 68,475 | $ | 69,861 | $ | 691 | $ | (70,552 | ) | $ | 68,475 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (Loss) (In thousands) | |||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 91,515 | $ | 83,350 | $ | 18,036 | $ | (101,386 | ) | $ | 91,515 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Foreign currency translation | (39,329 | ) | (14,554 | ) | (37,922 | ) | 52,476 | (39,329 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 817 | — | (229 | ) | 229 | 817 | |||||||||||||
Change in unrealized gain on pension plan, net of tax | (30 | ) | — | (30 | ) | 30 | (30 | ) | |||||||||||
Total other comprehensive loss | (38,542 | ) | (14,554 | ) | (38,181 | ) | 52,735 | (38,542 | ) | ||||||||||
Total comprehensive income (loss) | $ | 52,973 | $ | 68,796 | $ | (20,145 | ) | $ | (48,651 | ) | $ | 52,973 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 328,163 | $ | 268,524 | $ | 98,786 | $ | (367,310 | ) | $ | 328,163 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Foreign currency translation | (43,758 | ) | (12,697 | ) | (40,656 | ) | 53,353 | (43,758 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 1,813 | — | 143 | (143 | ) | 1,813 | |||||||||||||
Net change in unrealized gains/losses on pension plan, net of tax | 82 | — | 82 | (82 | ) | 82 | |||||||||||||
Total other comprehensive loss | (41,863 | ) | (12,697 | ) | (40,431 | ) | 53,128 | (41,863 | ) | ||||||||||
Total comprehensive income | $ | 286,300 | $ | 255,827 | $ | 58,355 | $ | (314,182 | ) | $ | 286,300 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 301,050 | $ | 267,378 | $ | 73,051 | $ | (340,429 | ) | $ | 301,050 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Foreign currency translation | (24,013 | ) | (7,034 | ) | (22,610 | ) | 29,644 | (24,013 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 2,067 | — | (48 | ) | 48 | 2,067 | |||||||||||||
Change in unrealized gain on pension plan, net of tax | (97 | ) | — | (97 | ) | 97 | (97 | ) | |||||||||||
Total other comprehensive loss | (22,043 | ) | (7,034 | ) | (22,755 | ) | 29,789 | (22,043 | ) | ||||||||||
Total comprehensive income | $ | 279,007 | $ | 260,344 | $ | 50,296 | $ | (310,640 | ) | $ | 279,007 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Cash Flows (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by operating activities | $ | 243,988 | $ | 329,740 | $ | 136,686 | $ | (219,091 | ) | $ | 491,323 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | (3 | ) | (49,023 | ) | (50,547 | ) | — | (99,573 | ) | ||||||||||
Investment and intercompany note activity with subsidiaries | (66,644 | ) | — | — | 66,644 | — | |||||||||||||
Acquisitions, net of cash acquired | — | (120,766 | ) | (36,591 | ) | — | (157,357 | ) | |||||||||||
Other investing activities, net | — | 8,832 | (5,658 | ) | — | 3,174 | |||||||||||||
Net cash used in investing activities | (66,647 | ) | (160,957 | ) | (92,796 | ) | 66,644 | (253,756 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from exercise of stock options | 7,534 | — | — | — | 7,534 | ||||||||||||||
Excess tax benefit from stock-based payments | 13,672 | — | — | — | 13,672 | ||||||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (7,423 | ) | — | — | — | (7,423 | ) | ||||||||||||
Borrowings under revolving credit facilities | 207,000 | — | 75,421 | — | 282,421 | ||||||||||||||
Repayments under revolving credit facilities | (347,000 | ) | — | (86,840 | ) | — | (433,840 | ) | |||||||||||
Repayments under term loans | (16,875 | ) | — | — | — | (16,875 | ) | ||||||||||||
Borrowings under receivables securitization facility | — | — | 3,858 | — | 3,858 | ||||||||||||||
Repayments under receivables securitization facility | — | — | (8,958 | ) | — | (8,958 | ) | ||||||||||||
Repayments of other long-term debt | (31,500 | ) | (5,962 | ) | (13,381 | ) | — | (50,843 | ) | ||||||||||
Payments of other obligations | — | (1,596 | ) | (895 | ) | — | (2,491 | ) | |||||||||||
Investment and intercompany note activity with parent | — | 62,540 | 4,104 | (66,644 | ) | — | |||||||||||||
Dividends | — | (219,091 | ) | — | 219,091 | — | |||||||||||||
Net cash used in financing activities | (174,592 | ) | (164,109 | ) | (26,691 | ) | 152,447 | (212,945 | ) | ||||||||||
Effect of exchange rate changes on cash and equivalents | — | 237 | (2,378 | ) | — | (2,141 | ) | ||||||||||||
Net increase in cash and equivalents | 2,749 | 4,911 | 14,821 | — | 22,481 | ||||||||||||||
Cash and equivalents, beginning of period | 14,930 | 32,103 | 67,572 | — | 114,605 | ||||||||||||||
Cash and equivalents, end of period | $ | 17,679 | $ | 37,014 | $ | 82,393 | $ | — | $ | 137,086 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Cash Flows (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 264,870 | $ | 361,218 | $ | (43,793 | ) | $ | (259,653 | ) | $ | 322,642 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | (37 | ) | (59,387 | ) | (40,767 | ) | — | (100,191 | ) | ||||||||||
Investment and intercompany note activity with subsidiaries | (197,714 | ) | (607 | ) | — | 198,321 | — | ||||||||||||
Acquisitions, net of cash acquired | — | (520,721 | ) | (129,893 | ) | — | (650,614 | ) | |||||||||||
Other investing activities, net | — | 618 | 316 | — | 934 | ||||||||||||||
Net cash used in investing activities | (197,751 | ) | (580,097 | ) | (170,344 | ) | 198,321 | (749,871 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from exercise of stock options | 6,520 | — | — | — | 6,520 | ||||||||||||||
Excess tax benefit from stock-based payments | 14,455 | — | — | — | 14,455 | ||||||||||||||
Borrowings under revolving credit facilities | 693,000 | — | 606,821 | — | 1,299,821 | ||||||||||||||
Repayments under revolving credit facilities | (693,000 | ) | — | (115,039 | ) | — | (808,039 | ) | |||||||||||
Borrowings under term loans | 11,250 | — | — | — | 11,250 | ||||||||||||||
Repayments under term loans | (11,250 | ) | — | — | — | (11,250 | ) | ||||||||||||
Borrowings under receivables securitization facility | — | — | 80,000 | — | 80,000 | ||||||||||||||
Repayments of other long-term debt | (1,920 | ) | (2,104 | ) | (16,508 | ) | — | (20,532 | ) | ||||||||||
Payments of other obligations | — | (407 | ) | (41,527 | ) | — | (41,934 | ) | |||||||||||
Other financing activities, net | (18,669 | ) | 12,340 | (552 | ) | — | (6,881 | ) | |||||||||||
Investment and intercompany note activity with parent | — | 481,951 | (283,630 | ) | (198,321 | ) | — | ||||||||||||
Dividends | — | (259,653 | ) | — | 259,653 | — | |||||||||||||
Net cash provided by financing activities | 386 | 232,127 | 229,565 | 61,332 | 523,410 | ||||||||||||||
Effect of exchange rate changes on cash and equivalents | — | (86 | ) | (1,937 | ) | — | (2,023 | ) | |||||||||||
Net increase in cash and equivalents | 67,505 | 13,162 | 13,491 | — | 94,158 | ||||||||||||||
Cash and equivalents, beginning of period | 77,926 | 13,693 | 58,869 | — | 150,488 | ||||||||||||||
Cash and equivalents, end of period | $ | 145,431 | $ | 26,855 | $ | 72,360 | $ | — | $ | 244,646 |
|
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Aftermarket and refurbished products | $ | 1,070,673 | $ | 1,022,549 | |||
Salvage and remanufactured products | 393,954 | 411,298 | |||||
$ | 1,464,627 | $ | 1,433,847 |
North America | Europe | Specialty | Total | ||||||||||||
Balance as of January 1, 2015 | $ | 1,392,032 | $ | 616,819 | $ | 280,044 | $ | 2,288,895 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 76,284 | 20,980 | 3,989 | 101,253 | |||||||||||
Exchange rate effects | (14,730 | ) | (27,376 | ) | 50 | (42,056 | ) | ||||||||
Balance as of September 30, 2015 | $ | 1,453,586 | $ | 610,423 | $ | 284,083 | $ | 2,348,092 |
September 30, 2015 | December 31, 2014 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Trade names and trademarks | $ | 171,165 | $ | (41,480 | ) | $ | 129,685 | $ | 173,340 | $ | (35,538 | ) | $ | 137,802 | |||||||||
Customer relationships | 92,780 | (37,121 | ) | 55,659 | 92,972 | (26,751 | ) | 66,221 | |||||||||||||||
Software and other technology related assets | 44,465 | (16,028 | ) | 28,437 | 44,640 | (10,387 | ) | 34,253 | |||||||||||||||
Covenants not to compete | 10,937 | (5,086 | ) | 5,851 | 11,074 | (3,825 | ) | 7,249 | |||||||||||||||
$ | 319,347 | $ | (99,715 | ) | $ | 219,632 | $ | 322,026 | $ | (76,501 | ) | $ | 245,525 |
Balance as of January 1, 2015 | $ | 14,881 | |
Warranty expense | 26,294 | ||
Warranty claims | (23,517 | ) | |
Balance as of September 30, 2015 | $ | 17,658 |
|
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Aftermarket and refurbished products | $ | 1,070,673 | $ | 1,022,549 | |||
Salvage and remanufactured products | 393,954 | 411,298 | |||||
$ | 1,464,627 | $ | 1,433,847 |
North America | Europe | Specialty | Total | ||||||||||||
Balance as of January 1, 2015 | $ | 1,392,032 | $ | 616,819 | $ | 280,044 | $ | 2,288,895 | |||||||
Business acquisitions and adjustments to previously recorded goodwill | 76,284 | 20,980 | 3,989 | 101,253 | |||||||||||
Exchange rate effects | (14,730 | ) | (27,376 | ) | 50 | (42,056 | ) | ||||||||
Balance as of September 30, 2015 | $ | 1,453,586 | $ | 610,423 | $ | 284,083 | $ | 2,348,092 |
September 30, 2015 | December 31, 2014 | ||||||||||||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net | Gross Carrying Amount | Accumulated Amortization | Net | ||||||||||||||||||
Trade names and trademarks | $ | 171,165 | $ | (41,480 | ) | $ | 129,685 | $ | 173,340 | $ | (35,538 | ) | $ | 137,802 | |||||||||
Customer relationships | 92,780 | (37,121 | ) | 55,659 | 92,972 | (26,751 | ) | 66,221 | |||||||||||||||
Software and other technology related assets | 44,465 | (16,028 | ) | 28,437 | 44,640 | (10,387 | ) | 34,253 | |||||||||||||||
Covenants not to compete | 10,937 | (5,086 | ) | 5,851 | 11,074 | (3,825 | ) | 7,249 | |||||||||||||||
$ | 319,347 | $ | (99,715 | ) | $ | 219,632 | $ | 322,026 | $ | (76,501 | ) | $ | 245,525 |
Balance as of January 1, 2015 | $ | 14,881 | |
Warranty expense | 26,294 | ||
Warranty claims | (23,517 | ) | |
Balance as of September 30, 2015 | $ | 17,658 |
|
Number Outstanding | Weighted Average Grant Date Fair Value | Aggregate Intrinsic Value (in thousands) (1) | ||||||||
Unvested as of January 1, 2015 | 2,151,232 | $ | 20.97 | $ | 60,493 | |||||
Granted | 915,386 | $ | 27.04 | |||||||
Vested | (994,130 | ) | $ | 19.87 | ||||||
Forfeited / Canceled | (81,563 | ) | $ | 24.54 | ||||||
Unvested as of September 30, 2015 | 1,990,925 | $ | 24.16 | $ | 56,463 | |||||
Expected to vest after September 30, 2015 | 1,935,514 | $ | 24.08 | $ | 54,891 |
Number Outstanding | Weighted Average Exercise Price | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value (in thousands) (1) | |||||||||
Balance as of January 1, 2015 | 5,207,772 | $ | 8.04 | 3.6 | $ | 105,038 | ||||||
Exercised | (1,324,150 | ) | $ | 6.21 | ||||||||
Forfeited / Canceled | (13,599 | ) | $ | 28.13 | ||||||||
Balance as of September 30, 2015 | 3,870,023 | $ | 8.59 | 3.1 | $ | 76,891 | ||||||
Exercisable as of September 30, 2015 | 3,775,341 | $ | 7.99 | 3.1 | $ | 76,891 | ||||||
Exercisable as of September 30, 2015 and expected to vest thereafter | 3,860,555 | $ | 8.53 | 3.1 | $ | 76,891 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
RSUs | $ | 5,119 | $ | 4,434 | $ | 16,067 | $ | 14,625 | |||||||
Stock options | 58 | 703 | 224 | 2,203 | |||||||||||
Restricted stock | — | 47 | — | 139 | |||||||||||
Total stock-based compensation expense | $ | 5,177 | $ | 5,184 | $ | 16,291 | $ | 16,967 |
|
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Senior secured credit agreement: | |||||||
Term loans payable | $ | 416,250 | $ | 433,125 | |||
Revolving credit facilities | 475,308 | 663,912 | |||||
Senior notes | 600,000 | 600,000 | |||||
Receivables securitization facility | 89,800 | 94,900 | |||||
Notes payable through November 2019 at weighted average interest rates of 1.1% and 1.0%, respectively | 13,875 | 45,891 | |||||
Other long-term debt at weighted average interest rates of 4.2% and 3.1%, respectively | 11,997 | 26,734 | |||||
1,607,230 | 1,864,562 | ||||||
Less current maturities | (37,174 | ) | (63,515 | ) | |||
$ | 1,570,056 | $ | 1,801,047 |
|
Notional Amount | Fair Value at September 30, 2015 (USD) | Fair Value at December 31, 2014 (USD) | ||||||||||||||||||||||
September 30, 2015 | December 31, 2014 | Other Accrued Expenses | Other Noncurrent Liabilities | Other Accrued Expenses | Other Noncurrent Liabilities | |||||||||||||||||||
Interest rate swap agreements | ||||||||||||||||||||||||
USD denominated | $ | 420,000 | $ | 420,000 | $ | 140 | $ | 1,519 | $ | 2,691 | $ | 1,615 | ||||||||||||
GBP denominated | £ | 50,000 | £ | 50,000 | — | 653 | — | 893 | ||||||||||||||||
CAD denominated | C$ | 25,000 | C$ | 25,000 | 62 | — | — | 19 | ||||||||||||||||
Total cash flow hedges | $ | 202 | $ | 2,172 | $ | 2,691 | $ | 2,527 |
|
Balance as of September 30, 2015 | Fair Value Measurements as of September 30, 2015 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||
Cash surrender value of life insurance | $ | 28,787 | $ | — | $ | 28,787 | $ | — | |||||||
Total Assets | $ | 28,787 | $ | — | $ | 28,787 | $ | — | |||||||
Liabilities: | |||||||||||||||
Contingent consideration liabilities | $ | 4,548 | $ | — | $ | — | $ | 4,548 | |||||||
Deferred compensation liabilities | 28,388 | — | 28,388 | — | |||||||||||
Interest rate swaps | 2,374 | — | 2,374 | — | |||||||||||
Total Liabilities | $ | 35,310 | $ | — | $ | 30,762 | $ | 4,548 |
Balance as of December 31, 2014 | Fair Value Measurements as of December 31, 2014 | ||||||||||||||
Level 1 | Level 2 | Level 3 | |||||||||||||
Assets: | |||||||||||||||
Cash surrender value of life insurance | $ | 28,242 | $ | — | $ | 28,242 | $ | — | |||||||
Total Assets | $ | 28,242 | $ | — | $ | 28,242 | $ | — | |||||||
Liabilities: | |||||||||||||||
Contingent consideration liabilities | $ | 7,295 | $ | — | $ | — | $ | 7,295 | |||||||
Deferred compensation liabilities | 27,580 | — | 27,580 | — | |||||||||||
Interest rate swaps | 5,218 | — | 5,218 | — | |||||||||||
Total Liabilities | $ | 40,093 | $ | — | $ | 32,798 | $ | 7,295 |
September 30, | December 31, | ||||
2015 | 2014 | ||||
Unobservable Input | (Weighted Average) | ||||
Probability of achieving payout targets | 75.9 | % | 79.1 | % | |
Discount rate | 7.5 | % | 7.5 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Beginning Balance | $ | 5,191 | $ | 8,762 | $ | 7,295 | $ | 55,653 | |||||||
Contingent consideration liabilities recorded for business acquisitions | — | (1,203 | ) | — | 5,854 | ||||||||||
Payments | (610 | ) | — | (2,815 | ) | (52,305 | ) | ||||||||
Increase (decrease) in fair value included in earnings | 89 | 12 | 365 | (2,000 | ) | ||||||||||
Exchange rate effects | (122 | ) | (270 | ) | (297 | ) | 99 | ||||||||
Ending Balance | $ | 4,548 | $ | 7,301 | $ | 4,548 | $ | 7,301 |
|
Three months ending December 31, 2015 | $ | 40,241 | |
Years ending December 31: | |||
2016 | 146,774 | ||
2017 | 124,121 | ||
2018 | 102,397 | ||
2019 | 82,568 | ||
2020 | 66,396 | ||
Thereafter | 232,894 | ||
Future Minimum Lease Payments | $ | 795,391 |
|
Nine Months Ended | Year Ended | ||||||||||||||
September 30, 2015 | December 31, 2014 | ||||||||||||||
All Acquisitions | Keystone Specialty | Other Acquisitions | Total | ||||||||||||
Receivables | $ | 35,870 | $ | 48,473 | $ | 75,330 | $ | 123,803 | |||||||
Receivable reserves | (1,167 | ) | (7,748 | ) | (7,383 | ) | (15,131 | ) | |||||||
Inventory | 79,234 | 150,696 | 123,815 | 274,511 | |||||||||||
Income taxes receivable | — | 14,096 | — | 14,096 | |||||||||||
Prepaid expenses and other current assets | 3,352 | 8,085 | 4,050 | 12,135 | |||||||||||
Property and equipment | 8,671 | 38,080 | 27,026 | 65,106 | |||||||||||
Goodwill | 101,253 | 237,729 | 177,974 | 415,703 | |||||||||||
Other intangibles | 3,456 | 78,110 | 51,135 | 129,245 | |||||||||||
Other assets | 3,748 | 6,159 | 2,793 | 8,952 | |||||||||||
Deferred income taxes | 2,243 | (26,591 | ) | 313 | (26,278 | ) | |||||||||
Current liabilities assumed | (48,918 | ) | (63,513 | ) | (52,961 | ) | (116,474 | ) | |||||||
Debt assumed | (2,373 | ) | — | (32,441 | ) | (32,441 | ) | ||||||||
Other noncurrent liabilities assumed | (832 | ) | (11,675 | ) | (10,573 | ) | (22,248 | ) | |||||||
Contingent consideration liabilities | — | — | (5,854 | ) | (5,854 | ) | |||||||||
Other purchase price obligations | (22,077 | ) | (13,351 | ) | (333 | ) | (13,684 | ) | |||||||
Notes issued | (4,148 | ) | (31,500 | ) | (13,535 | ) | (45,035 | ) | |||||||
Settlement of pre-existing balances | (1,073 | ) | — | (5,052 | ) | (5,052 | ) | ||||||||
Cash used in acquisitions, net of cash acquired | $ | 157,239 | $ | 427,050 | $ | 334,304 | $ | 761,354 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue, as reported | $ | 1,831,732 | $ | 1,721,024 | $ | 5,443,714 | $ | 5,055,933 | |||||||
Revenue of purchased businesses for the period prior to acquisition: | |||||||||||||||
Keystone Specialty | — | — | — | 3,443 | |||||||||||
Other acquisitions | 28,065 | 176,693 | 209,834 | 582,344 | |||||||||||
Pro forma revenue | $ | 1,859,797 | $ | 1,897,717 | $ | 5,653,548 | $ | 5,641,720 | |||||||
Net income, as reported | $ | 101,346 | $ | 91,515 | $ | 328,163 | $ | 301,050 | |||||||
Net income of purchased businesses for the period prior to acquisition, and pro forma purchase accounting adjustments: | |||||||||||||||
Keystone Specialty | — | 144 | — | 497 | |||||||||||
Other acquisitions | (288 | ) | 6,841 | 5,501 | 17,872 | ||||||||||
Pro forma net income | $ | 101,058 | $ | 98,500 | $ | 333,664 | $ | 319,419 | |||||||
Earnings per share, basic—as reported | $ | 0.33 | $ | 0.30 | $ | 1.08 | $ | 1.00 | |||||||
Effect of purchased businesses for the period prior to acquisition: | |||||||||||||||
Keystone Specialty | — | 0.00 | — | 0.00 | |||||||||||
Other acquisitions | (0.00 | ) | 0.02 | 0.02 | 0.06 | ||||||||||
Pro forma earnings per share, basic (1) | $ | 0.33 | $ | 0.32 | $ | 1.10 | $ | 1.06 | |||||||
Earnings per share, diluted—as reported | $ | 0.33 | $ | 0.30 | $ | 1.07 | $ | 0.98 | |||||||
Effect of purchased businesses for the period prior to acquisition: | |||||||||||||||
Keystone Specialty | — | 0.00 | — | 0.00 | |||||||||||
Other acquisitions | (0.00 | ) | 0.02 | 0.02 | 0.06 | ||||||||||
Pro forma earnings per share, diluted (1) | $ | 0.33 | $ | 0.32 | $ | 1.09 | $ | 1.04 |
|
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | |||||||||||||||||||||||||||||||
Foreign Currency Translation | Unrealized (Loss) Gain on Cash Flow Hedges | Unrealized (Loss) Gain on Pension Plan | Accumulated Other Comprehensive (Loss) Income | Foreign Currency Translation | Unrealized (Loss) Gain on Cash Flow Hedges | Unrealized Gain (Loss) on Pension Plan | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Beginning balance | $ | (37,373 | ) | $ | (2,200 | ) | $ | (9,644 | ) | $ | (49,217 | ) | $ | 40,222 | $ | (4,346 | ) | $ | 634 | $ | 36,510 | |||||||||||
Pretax (loss)income | (33,458 | ) | (575 | ) | — | (34,033 | ) | (39,329 | ) | (186 | ) | — | (39,515 | ) | ||||||||||||||||||
Income tax effect | — | 185 | — | 185 | — | (7 | ) | — | (7 | ) | ||||||||||||||||||||||
Reclassification of unrealized gain(loss) | — | 1,542 | (34 | ) | 1,508 | — | 1,554 | (39 | ) | 1,515 | ||||||||||||||||||||||
Reclassification of deferred income taxes | — | (540 | ) | 9 | (531 | ) | — | (544 | ) | 9 | (535 | ) | ||||||||||||||||||||
Ending Balance | $ | (70,831 | ) | $ | (1,588 | ) | $ | (9,669 | ) | $ | (82,088 | ) | $ | 893 | $ | (3,529 | ) | $ | 604 | $ | (2,032 | ) |
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||
September 30, 2015 | September 30, 2014 | |||||||||||||||||||||||||||||||
Foreign Currency Translation | Unrealized (Loss) Gain on Cash Flow Hedges | Unrealized (Loss) Gain on Pension Plan | Accumulated Other Comprehensive (Loss) Income | Foreign Currency Translation | Unrealized (Loss) Gain on Cash Flow Hedges | Unrealized Gain (Loss) on Pension Plan | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||||
Beginning balance | $ | (27,073 | ) | $ | (3,401 | ) | $ | (9,751 | ) | $ | (40,225 | ) | $ | 24,906 | $ | (5,596 | ) | $ | 701 | $ | 20,011 | |||||||||||
Pretax (loss) income | (43,758 | ) | (1,814 | ) | — | (45,572 | ) | (24,013 | ) | (362 | ) | — | (24,375 | ) | ||||||||||||||||||
Income tax effect | — | 624 | — | 624 | — | 39 | — | 39 | ||||||||||||||||||||||||
Reclassification of unrealized gain(loss) | — | 4,627 | 109 | 4,736 | — | 3,647 | (129 | ) | 3,518 | |||||||||||||||||||||||
Reclassification of deferred income taxes | — | (1,624 | ) | (27 | ) | (1,651 | ) | — | (1,257 | ) | 32 | (1,225 | ) | |||||||||||||||||||
Ending Balance | $ | (70,831 | ) | $ | (1,588 | ) | $ | (9,669 | ) | $ | (82,088 | ) | $ | 893 | $ | (3,529 | ) | $ | 604 | $ | (2,032 | ) |
|
North America | Europe | Specialty | Eliminations | Consolidated | |||||||||||||||
Three Months Ended September 30, 2015 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 1,037,130 | $ | 511,146 | $ | 283,456 | $ | — | $ | 1,831,732 | |||||||||
Intersegment | 160 | — | 850 | (1,010 | ) | — | |||||||||||||
Total segment revenue | $ | 1,037,290 | $ | 511,146 | $ | 284,306 | $ | (1,010 | ) | $ | 1,831,732 | ||||||||
Segment EBITDA | $ | 128,506 | $ | 52,733 | $ | 26,075 | $ | — | $ | 207,314 | |||||||||
Depreciation and amortization (1) | 17,918 | 9,478 | 5,578 | — | 32,974 | ||||||||||||||
Three Months Ended September 30, 2014 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 1,024,835 | $ | 495,776 | $ | 200,413 | $ | — | $ | 1,721,024 | |||||||||
Intersegment | 132 | — | 594 | (726 | ) | — | |||||||||||||
Total segment revenue | $ | 1,024,967 | $ | 495,776 | $ | 201,007 | $ | (726 | ) | $ | 1,721,024 | ||||||||
Segment EBITDA | $ | 131,851 | $ | 41,726 | $ | 17,977 | $ | — | $ | 191,554 | |||||||||
Depreciation and amortization (1) | 18,029 | 9,411 | 4,314 | — | 31,754 |
North America | Europe | Specialty | Eliminations | Consolidated | |||||||||||||||
Nine Months Ended September 30, 2015 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 3,127,988 | $ | 1,508,325 | $ | 807,401 | $ | — | $ | 5,443,714 | |||||||||
Intersegment | 626 | 70 | 2,457 | (3,153 | ) | — | |||||||||||||
Total segment revenue | $ | 3,128,614 | $ | 1,508,395 | $ | 809,858 | $ | (3,153 | ) | $ | 5,443,714 | ||||||||
Segment EBITDA | $ | 416,774 | $ | 153,199 | $ | 91,677 | $ | — | $ | 661,650 | |||||||||
Depreciation and amortization (1) | 52,432 | 26,533 | 15,723 | — | 94,688 | ||||||||||||||
Nine Months Ended September 30, 2014 | |||||||||||||||||||
Revenue: | |||||||||||||||||||
Third Party | $ | 3,080,090 | $ | 1,380,663 | $ | 595,180 | $ | — | $ | 5,055,933 | |||||||||
Intersegment | 266 | — | 1,250 | (1,516 | ) | — | |||||||||||||
Total segment revenue | $ | 3,080,356 | $ | 1,380,663 | $ | 596,430 | $ | (1,516 | ) | $ | 5,055,933 | ||||||||
Segment EBITDA | $ | 415,139 | $ | 128,826 | $ | 64,137 | $ | — | $ | 608,102 | |||||||||
Depreciation and amortization (1) | 52,682 | 24,868 | 13,097 | — | 90,647 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Segment EBITDA | $ | 207,314 | $ | 191,554 | $ | 661,650 | $ | 608,102 | |||||||
Deduct: | |||||||||||||||
Restructuring and acquisition related expenses (1) | 4,578 | 3,594 | 12,729 | 12,816 | |||||||||||
Change in fair value of contingent consideration liabilities (2) | 89 | 12 | 365 | (2,000 | ) | ||||||||||
Add: | |||||||||||||||
Equity in earnings of unconsolidated subsidiaries | (1,130 | ) | (721 | ) | (4,200 | ) | (1,199 | ) | |||||||
EBITDA | 201,517 | 187,227 | 644,356 | 596,087 | |||||||||||
Depreciation and amortization - cost of goods sold | 2,091 | 1,256 | 4,570 | 3,511 | |||||||||||
Depreciation and amortization | 30,883 | 30,498 | 90,118 | 87,136 | |||||||||||
Interest expense, net | 14,722 | 16,394 | 44,250 | 48,140 | |||||||||||
Loss on debt extinguishment | — | — | — | 324 | |||||||||||
Provision for income taxes | 52,475 | 47,564 | 177,255 | 155,926 | |||||||||||
Net income | $ | 101,346 | $ | 91,515 | $ | 328,163 | $ | 301,050 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Capital Expenditures | |||||||||||||||
North America | $ | 11,615 | $ | 20,986 | $ | 41,762 | $ | 61,262 | |||||||
Europe | 16,966 | 8,652 | 47,138 | 32,927 | |||||||||||
Specialty | 4,229 | 3,222 | 10,673 | 6,002 | |||||||||||
$ | 32,810 | $ | 32,860 | $ | 99,573 | $ | 100,191 |
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Receivables, net | |||||||
North America | $ | 322,954 | $ | 322,713 | |||
Europe | 222,445 | 227,987 | |||||
Specialty | 81,381 | 50,722 | |||||
Total receivables, net | 626,780 | 601,422 | |||||
Inventory | |||||||
North America | 808,679 | 826,429 | |||||
Europe | 402,830 | 402,488 | |||||
Specialty | 253,118 | 204,930 | |||||
Total inventory | 1,464,627 | 1,433,847 | |||||
Property and Equipment, net | |||||||
North America | 450,748 | 456,288 | |||||
Europe | 152,881 | 128,309 | |||||
Specialty | 49,151 | 45,390 | |||||
Total property and equipment, net | 652,780 | 629,987 | |||||
Other unallocated assets | 2,959,845 | 2,908,236 | |||||
Total assets | $ | 5,704,032 | $ | 5,573,492 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Revenue | |||||||||||||||
United States | $ | 1,229,958 | $ | 1,126,468 | $ | 3,653,326 | $ | 3,369,636 | |||||||
United Kingdom | 358,925 | 349,012 | 1,049,596 | 1,003,889 | |||||||||||
Other countries | 242,849 | 245,544 | 740,792 | 682,408 | |||||||||||
$ | 1,831,732 | $ | 1,721,024 | $ | 5,443,714 | $ | 5,055,933 |
September 30, | December 31, | ||||||
2015 | 2014 | ||||||
Long-lived Assets | |||||||
United States | $ | 471,549 | $ | 469,450 | |||
United Kingdom | 118,357 | 92,813 | |||||
Other countries | 62,874 | 67,724 | |||||
$ | 652,780 | $ | 629,987 |
Three Months Ended | Nine Months Ended | ||||||||||||||
September 30, | September 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||
Aftermarket, other new and refurbished products | $ | 1,307,399 | $ | 1,171,706 | $ | 3,850,038 | $ | 3,445,376 | |||||||
Recycled, remanufactured and related products and services | 401,292 | 371,632 | 1,207,917 | 1,108,376 | |||||||||||
Other | 123,041 | 177,686 | 385,759 | 502,181 | |||||||||||
$ | 1,831,732 | $ | 1,721,024 | $ | 5,443,714 | $ | 5,055,933 |
|
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Balance Sheets (In thousands) | |||||||||||||||||||
September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and equivalents | $ | 17,679 | $ | 37,014 | $ | 82,393 | $ | — | $ | 137,086 | |||||||||
Receivables, net | — | 246,035 | 380,745 | — | 626,780 | ||||||||||||||
Intercompany receivables, net | 3,470 | — | 11,354 | (14,824 | ) | — | |||||||||||||
Inventory | — | 992,340 | 472,287 | — | 1,464,627 | ||||||||||||||
Deferred income taxes | 3,123 | 71,356 | 2,922 | — | 77,401 | ||||||||||||||
Prepaid expenses and other current assets | 548 | 40,005 | 40,696 | — | 81,249 | ||||||||||||||
Total Current Assets | 24,820 | 1,386,750 | 990,397 | (14,824 | ) | 2,387,143 | |||||||||||||
Property and Equipment, net | 377 | 472,864 | 179,539 | — | 652,780 | ||||||||||||||
Intangible Assets: | |||||||||||||||||||
Goodwill | — | 1,650,053 | 698,039 | — | 2,348,092 | ||||||||||||||
Other intangibles, net | — | 141,644 | 77,988 | — | 219,632 | ||||||||||||||
Investment in Subsidiaries | 3,385,478 | 288,999 | — | (3,674,477 | ) | — | |||||||||||||
Intercompany Notes Receivable | 651,424 | 27,252 | — | (678,676 | ) | — | |||||||||||||
Other Assets | 47,593 | 28,937 | 22,894 | (3,039 | ) | 96,385 | |||||||||||||
Total Assets | $ | 4,109,692 | $ | 3,996,499 | $ | 1,968,857 | $ | (4,371,016 | ) | $ | 5,704,032 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Accounts payable | $ | 1,414 | $ | 206,446 | $ | 208,481 | $ | — | $ | 416,341 | |||||||||
Intercompany payables, net | — | 11,354 | 3,470 | (14,824 | ) | — | |||||||||||||
Accrued expenses: | |||||||||||||||||||
Accrued payroll-related liabilities | 6,448 | 56,682 | 31,884 | — | 95,014 | ||||||||||||||
Other accrued expenses | 13,183 | 85,727 | 86,162 | — | 185,072 | ||||||||||||||
Other current liabilities | 1,396 | 37,358 | 25,343 | — | 64,097 | ||||||||||||||
Current portion of long-term obligations | 22,650 | 1,905 | 12,619 | — | 37,174 | ||||||||||||||
Total Current Liabilities | 45,091 | 399,472 | 367,959 | (14,824 | ) | 797,698 | |||||||||||||
Long-Term Obligations, Excluding Current Portion | 995,450 | 4,643 | 569,963 | — | 1,570,056 | ||||||||||||||
Intercompany Notes Payable | — | 635,594 | 43,082 | (678,676 | ) | — | |||||||||||||
Deferred Income Taxes | — | 163,107 | 15,242 | (3,039 | ) | 175,310 | |||||||||||||
Other Noncurrent Liabilities | 32,438 | 67,430 | 24,387 | — | 124,255 | ||||||||||||||
Stockholders’ Equity | 3,036,713 | 2,726,253 | 948,224 | (3,674,477 | ) | 3,036,713 | |||||||||||||
Total Liabilities and Stockholders' Equity | $ | 4,109,692 | $ | 3,996,499 | $ | 1,968,857 | $ | (4,371,016 | ) | $ | 5,704,032 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Balance Sheets (In thousands) | |||||||||||||||||||
December 31, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Assets | |||||||||||||||||||
Current Assets: | |||||||||||||||||||
Cash and equivalents | $ | 14,930 | $ | 32,103 | $ | 67,572 | $ | — | $ | 114,605 | |||||||||
Receivables, net | 145 | 217,542 | 383,735 | — | 601,422 | ||||||||||||||
Intercompany receivables, net | 1,360 | — | 8,048 | (9,408 | ) | — | |||||||||||||
Inventory | — | 964,477 | 469,370 | — | 1,433,847 | ||||||||||||||
Deferred income taxes | 4,064 | 62,850 | 10,215 | 4,615 | 81,744 | ||||||||||||||
Prepaid expenses and other current assets | 20,640 | 36,553 | 28,606 | — | 85,799 | ||||||||||||||
Total Current Assets | 41,139 | 1,313,525 | 967,546 | (4,793 | ) | 2,317,417 | |||||||||||||
Property and Equipment, net | 494 | 470,791 | 158,702 | — | 629,987 | ||||||||||||||
Intangible Assets: | |||||||||||||||||||
Goodwill | — | 1,563,796 | 725,099 | — | 2,288,895 | ||||||||||||||
Other intangibles, net | — | 155,819 | 89,706 | — | 245,525 | ||||||||||||||
Investment in Subsidiaries | 3,216,039 | 279,967 | — | (3,496,006 | ) | — | |||||||||||||
Intercompany Notes Receivable | 667,949 | 23,449 | — | (691,398 | ) | — | |||||||||||||
Other Assets | 49,601 | 24,457 | 20,481 | (2,871 | ) | 91,668 | |||||||||||||
Total Assets | $ | 3,975,222 | $ | 3,831,804 | $ | 1,961,534 | $ | (4,195,068 | ) | $ | 5,573,492 | ||||||||
Liabilities and Stockholders’ Equity | |||||||||||||||||||
Current Liabilities: | |||||||||||||||||||
Accounts payable | $ | 682 | $ | 182,607 | $ | 216,913 | $ | — | $ | 400,202 | |||||||||
Intercompany payables, net | — | 8,048 | 1,360 | (9,408 | ) | — | |||||||||||||
Accrued expenses: | |||||||||||||||||||
Accrued payroll-related liabilities | 8,075 | 48,850 | 29,091 | — | 86,016 | ||||||||||||||
Other accrued expenses | 8,061 | 83,857 | 72,230 | — | 164,148 | ||||||||||||||
Other current liabilities | 283 | 16,197 | 15,720 | 4,615 | 36,815 | ||||||||||||||
Current portion of long-term obligations | 55,172 | 4,599 | 3,744 | — | 63,515 | ||||||||||||||
Total Current Liabilities | 72,273 | 344,158 | 339,058 | (4,793 | ) | 750,696 | |||||||||||||
Long-Term Obligations, Excluding Current Portion | 1,150,624 | 6,561 | 643,862 | — | 1,801,047 | ||||||||||||||
Intercompany Notes Payable | — | 649,824 | 41,574 | (691,398 | ) | — | |||||||||||||
Deferred Income Taxes | — | 156,727 | 27,806 | (2,871 | ) | 181,662 | |||||||||||||
Other Noncurrent Liabilities | 31,668 | 60,213 | 27,549 | — | 119,430 | ||||||||||||||
Stockholders’ Equity | 2,720,657 | 2,614,321 | 881,685 | (3,496,006 | ) | 2,720,657 | |||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,975,222 | $ | 3,831,804 | $ | 1,961,534 | $ | (4,195,068 | ) | $ | 5,573,492 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
For the Three Months Ended September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 1,263,397 | $ | 595,769 | $ | (27,434 | ) | $ | 1,831,732 | ||||||||
Cost of goods sold | — | 773,957 | 372,430 | (27,434 | ) | 1,118,953 | |||||||||||||
Gross margin | — | 489,440 | 223,339 | — | 712,779 | ||||||||||||||
Facility and warehouse expenses | — | 106,090 | 37,828 | — | 143,918 | ||||||||||||||
Distribution expenses | — | 105,519 | 53,249 | — | 158,768 | ||||||||||||||
Selling, general and administrative expenses | 8,484 | 124,678 | 74,725 | — | 207,887 | ||||||||||||||
Restructuring and acquisition related expenses | — | 3,754 | 824 | — | 4,578 | ||||||||||||||
Depreciation and amortization | 38 | 21,133 | 9,712 | — | 30,883 | ||||||||||||||
Operating (loss) income | (8,522 | ) | 128,266 | 47,001 | — | 166,745 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense, net | 12,049 | 460 | 2,213 | — | 14,722 | ||||||||||||||
Intercompany interest (income) expense, net | (10,146 | ) | 7,183 | 2,963 | — | — | |||||||||||||
Change in fair value of contingent consideration liabilities | — | 56 | 33 | — | 89 | ||||||||||||||
Other expense (income), net | 8 | (2,497 | ) | (528 | ) | — | (3,017 | ) | |||||||||||
Total other expense, net | 1,911 | 5,202 | 4,681 | — | 11,794 | ||||||||||||||
(Loss) income before (benefit) provision for income taxes | (10,433 | ) | 123,064 | 42,320 | — | 154,951 | |||||||||||||
(Benefit) provision for income taxes | (4,012 | ) | 48,089 | 8,398 | — | 52,475 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 17 | (1,147 | ) | — | (1,130 | ) | ||||||||||||
Equity in earnings of subsidiaries | 107,767 | 6,328 | — | (114,095 | ) | — | |||||||||||||
Net income | $ | 101,346 | $ | 81,320 | $ | 32,775 | $ | (114,095 | ) | $ | 101,346 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 1,165,794 | $ | 588,852 | $ | (33,622 | ) | $ | 1,721,024 | ||||||||
Cost of goods sold | — | 709,985 | 380,250 | (33,622 | ) | 1,056,613 | |||||||||||||
Gross margin | — | 455,809 | 208,602 | — | 664,411 | ||||||||||||||
Facility and warehouse expenses | — | 95,619 | 37,711 | — | 133,330 | ||||||||||||||
Distribution expenses | — | 98,457 | 50,115 | — | 148,572 | ||||||||||||||
Selling, general and administrative expenses | 5,178 | 114,926 | 72,125 | — | 192,229 | ||||||||||||||
Restructuring and acquisition related expenses | — | 882 | 2,712 | — | 3,594 | ||||||||||||||
Depreciation and amortization | 50 | 19,592 | 10,856 | — | 30,498 | ||||||||||||||
Operating (loss) income | (5,228 | ) | 126,333 | 35,083 | — | 156,188 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense, net | 12,338 | 71 | 3,985 | — | 16,394 | ||||||||||||||
Intercompany interest (income) expense, net | (12,638 | ) | 6,207 | 6,431 | — | — | |||||||||||||
Change in fair value of contingent consideration liabilities | — | 54 | (42 | ) | — | 12 | |||||||||||||
Other expense (income), net | 155 | (1,164 | ) | 991 | — | (18 | ) | ||||||||||||
Total other expense, net | (145 | ) | 5,168 | 11,365 | — | 16,388 | |||||||||||||
(Loss) income before (benefit) provision for income taxes | (5,083 | ) | 121,165 | 23,718 | — | 139,800 | |||||||||||||
(Benefit) provision for income taxes | (1,363 | ) | 43,986 | 4,941 | — | 47,564 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 20 | (741 | ) | — | (721 | ) | ||||||||||||
Equity in earnings of subsidiaries | 95,235 | 6,151 | — | (101,386 | ) | — | |||||||||||||
Net income | $ | 91,515 | $ | 83,350 | $ | 18,036 | $ | (101,386 | ) | $ | 91,515 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 3,758,846 | $ | 1,778,456 | $ | (93,588 | ) | $ | 5,443,714 | ||||||||
Cost of goods sold | — | 2,284,786 | 1,116,314 | (93,588 | ) | 3,307,512 | |||||||||||||
Gross margin | — | 1,474,060 | 662,142 | — | 2,136,202 | ||||||||||||||
Facility and warehouse expenses | — | 304,140 | 108,814 | — | 412,954 | ||||||||||||||
Distribution expenses | — | 304,264 | 146,257 | — | 450,521 | ||||||||||||||
Selling, general and administrative expenses | 24,876 | 366,298 | 225,750 | — | 616,924 | ||||||||||||||
Restructuring and acquisition related expenses | — | 10,999 | 1,730 | — | 12,729 | ||||||||||||||
Depreciation and amortization | 117 | 60,897 | 29,104 | — | 90,118 | ||||||||||||||
Operating (loss) income | (24,993 | ) | 427,462 | 150,487 | — | 552,956 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense, net | 36,604 | 331 | 7,315 | — | 44,250 | ||||||||||||||
Intercompany interest (income) expense, net | (31,347 | ) | 21,498 | 9,849 | — | — | |||||||||||||
Change in fair value of contingent consideration liabilities | — | 166 | 199 | — | 365 | ||||||||||||||
Other expense (income), net | 35 | (5,448 | ) | 4,136 | — | (1,277 | ) | ||||||||||||
Total other expense, net | 5,292 | 16,547 | 21,499 | — | 43,338 | ||||||||||||||
(Loss) income before (benefit) provision for income taxes | (30,285 | ) | 410,915 | 128,988 | — | 509,618 | |||||||||||||
(Benefit) provision for income taxes | (12,061 | ) | 163,361 | 25,955 | — | 177,255 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 47 | (4,247 | ) | — | (4,200 | ) | ||||||||||||
Equity in earnings of subsidiaries | 346,387 | 20,923 | — | (367,310 | ) | — | |||||||||||||
Net income | $ | 328,163 | $ | 268,524 | $ | 98,786 | $ | (367,310 | ) | $ | 328,163 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Revenue | $ | — | $ | 3,486,098 | $ | 1,665,247 | $ | (95,412 | ) | $ | 5,055,933 | ||||||||
Cost of goods sold | — | 2,107,866 | 1,056,125 | (95,412 | ) | 3,068,579 | |||||||||||||
Gross margin | — | 1,378,232 | 609,122 | — | 1,987,354 | ||||||||||||||
Facility and warehouse expenses | — | 281,805 | 106,190 | — | 387,995 | ||||||||||||||
Distribution expenses | — | 291,187 | 141,258 | — | 432,445 | ||||||||||||||
Selling, general and administrative expenses | 20,188 | 342,038 | 201,118 | — | 563,344 | ||||||||||||||
Restructuring and acquisition related expenses | — | 7,366 | 5,450 | — | 12,816 | ||||||||||||||
Depreciation and amortization | 168 | 58,556 | 28,412 | — | 87,136 | ||||||||||||||
Operating (loss) income | (20,356 | ) | 397,280 | 126,694 | — | 503,618 | |||||||||||||
Other expense (income): | |||||||||||||||||||
Interest expense, net | 38,583 | 186 | 9,371 | — | 48,140 | ||||||||||||||
Intercompany interest (income) expense, net | (35,828 | ) | 16,279 | 19,549 | — | — | |||||||||||||
Loss on debt extinguishment | 324 | — | — | — | 324 | ||||||||||||||
Change in fair value of contingent consideration liabilities | — | (2,183 | ) | 183 | — | (2,000 | ) | ||||||||||||
Other expense (income), net | 81 | (4,542 | ) | 3,440 | — | (1,021 | ) | ||||||||||||
Total other expense, net | 3,160 | 9,740 | 32,543 | — | 45,443 | ||||||||||||||
(Loss) income before (benefit) provision for income taxes | (23,516 | ) | 387,540 | 94,151 | — | 458,175 | |||||||||||||
(Benefit) provision for income taxes | (8,665 | ) | 144,725 | 19,866 | — | 155,926 | |||||||||||||
Equity in earnings of unconsolidated subsidiaries | — | 35 | (1,234 | ) | — | (1,199 | ) | ||||||||||||
Equity in earnings of subsidiaries | 315,901 | 24,528 | — | (340,429 | ) | — | |||||||||||||
Net income | $ | 301,050 | $ | 267,378 | $ | 73,051 | $ | (340,429 | ) | $ | 301,050 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
For the Three Months Ended September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 101,346 | $ | 81,320 | $ | 32,775 | $ | (114,095 | ) | $ | 101,346 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Foreign currency translation | (33,458 | ) | (11,459 | ) | (32,073 | ) | 43,532 | (33,458 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 612 | — | 14 | (14 | ) | 612 | |||||||||||||
Net change in unrealized gains/losses on pension plan, net of tax | (25 | ) | — | (25 | ) | 25 | (25 | ) | |||||||||||
Total other comprehensive loss | (32,871 | ) | (11,459 | ) | (32,084 | ) | 43,543 | (32,871 | ) | ||||||||||
Total comprehensive income | $ | 68,475 | $ | 69,861 | $ | 691 | $ | (70,552 | ) | $ | 68,475 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (Loss) (In thousands) | |||||||||||||||||||
For the Three Months Ended September 30, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 91,515 | $ | 83,350 | $ | 18,036 | $ | (101,386 | ) | $ | 91,515 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Foreign currency translation | (39,329 | ) | (14,554 | ) | (37,922 | ) | 52,476 | (39,329 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 817 | — | (229 | ) | 229 | 817 | |||||||||||||
Change in unrealized gain on pension plan, net of tax | (30 | ) | — | (30 | ) | 30 | (30 | ) | |||||||||||
Total other comprehensive loss | (38,542 | ) | (14,554 | ) | (38,181 | ) | 52,735 | (38,542 | ) | ||||||||||
Total comprehensive income (loss) | $ | 52,973 | $ | 68,796 | $ | (20,145 | ) | $ | (48,651 | ) | $ | 52,973 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 328,163 | $ | 268,524 | $ | 98,786 | $ | (367,310 | ) | $ | 328,163 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Foreign currency translation | (43,758 | ) | (12,697 | ) | (40,656 | ) | 53,353 | (43,758 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 1,813 | — | 143 | (143 | ) | 1,813 | |||||||||||||
Net change in unrealized gains/losses on pension plan, net of tax | 82 | — | 82 | (82 | ) | 82 | |||||||||||||
Total other comprehensive loss | (41,863 | ) | (12,697 | ) | (40,431 | ) | 53,128 | (41,863 | ) | ||||||||||
Total comprehensive income | $ | 286,300 | $ | 255,827 | $ | 58,355 | $ | (314,182 | ) | $ | 286,300 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
Net income | $ | 301,050 | $ | 267,378 | $ | 73,051 | $ | (340,429 | ) | $ | 301,050 | ||||||||
Other comprehensive (loss) income, net of tax: | |||||||||||||||||||
Foreign currency translation | (24,013 | ) | (7,034 | ) | (22,610 | ) | 29,644 | (24,013 | ) | ||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 2,067 | — | (48 | ) | 48 | 2,067 | |||||||||||||
Change in unrealized gain on pension plan, net of tax | (97 | ) | — | (97 | ) | 97 | (97 | ) | |||||||||||
Total other comprehensive loss | (22,043 | ) | (7,034 | ) | (22,755 | ) | 29,789 | (22,043 | ) | ||||||||||
Total comprehensive income | $ | 279,007 | $ | 260,344 | $ | 50,296 | $ | (310,640 | ) | $ | 279,007 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Cash Flows (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2015 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by operating activities | $ | 243,988 | $ | 329,740 | $ | 136,686 | $ | (219,091 | ) | $ | 491,323 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | (3 | ) | (49,023 | ) | (50,547 | ) | — | (99,573 | ) | ||||||||||
Investment and intercompany note activity with subsidiaries | (66,644 | ) | — | — | 66,644 | — | |||||||||||||
Acquisitions, net of cash acquired | — | (120,766 | ) | (36,591 | ) | — | (157,357 | ) | |||||||||||
Other investing activities, net | — | 8,832 | (5,658 | ) | — | 3,174 | |||||||||||||
Net cash used in investing activities | (66,647 | ) | (160,957 | ) | (92,796 | ) | 66,644 | (253,756 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from exercise of stock options | 7,534 | — | — | — | 7,534 | ||||||||||||||
Excess tax benefit from stock-based payments | 13,672 | — | — | — | 13,672 | ||||||||||||||
Taxes paid related to net share settlements of stock-based compensation awards | (7,423 | ) | — | — | — | (7,423 | ) | ||||||||||||
Borrowings under revolving credit facilities | 207,000 | — | 75,421 | — | 282,421 | ||||||||||||||
Repayments under revolving credit facilities | (347,000 | ) | — | (86,840 | ) | — | (433,840 | ) | |||||||||||
Repayments under term loans | (16,875 | ) | — | — | — | (16,875 | ) | ||||||||||||
Borrowings under receivables securitization facility | — | — | 3,858 | — | 3,858 | ||||||||||||||
Repayments under receivables securitization facility | — | — | (8,958 | ) | — | (8,958 | ) | ||||||||||||
Repayments of other long-term debt | (31,500 | ) | (5,962 | ) | (13,381 | ) | — | (50,843 | ) | ||||||||||
Payments of other obligations | — | (1,596 | ) | (895 | ) | — | (2,491 | ) | |||||||||||
Investment and intercompany note activity with parent | — | 62,540 | 4,104 | (66,644 | ) | — | |||||||||||||
Dividends | — | (219,091 | ) | — | 219,091 | — | |||||||||||||
Net cash used in financing activities | (174,592 | ) | (164,109 | ) | (26,691 | ) | 152,447 | (212,945 | ) | ||||||||||
Effect of exchange rate changes on cash and equivalents | — | 237 | (2,378 | ) | — | (2,141 | ) | ||||||||||||
Net increase in cash and equivalents | 2,749 | 4,911 | 14,821 | — | 22,481 | ||||||||||||||
Cash and equivalents, beginning of period | 14,930 | 32,103 | 67,572 | — | 114,605 | ||||||||||||||
Cash and equivalents, end of period | $ | 17,679 | $ | 37,014 | $ | 82,393 | $ | — | $ | 137,086 |
LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Cash Flows (In thousands) | |||||||||||||||||||
For the Nine Months Ended September 30, 2014 | |||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 264,870 | $ | 361,218 | $ | (43,793 | ) | $ | (259,653 | ) | $ | 322,642 | |||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Purchases of property and equipment | (37 | ) | (59,387 | ) | (40,767 | ) | — | (100,191 | ) | ||||||||||
Investment and intercompany note activity with subsidiaries | (197,714 | ) | (607 | ) | — | 198,321 | — | ||||||||||||
Acquisitions, net of cash acquired | — | (520,721 | ) | (129,893 | ) | — | (650,614 | ) | |||||||||||
Other investing activities, net | — | 618 | 316 | — | 934 | ||||||||||||||
Net cash used in investing activities | (197,751 | ) | (580,097 | ) | (170,344 | ) | 198,321 | (749,871 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Proceeds from exercise of stock options | 6,520 | — | — | — | 6,520 | ||||||||||||||
Excess tax benefit from stock-based payments | 14,455 | — | — | — | 14,455 | ||||||||||||||
Borrowings under revolving credit facilities | 693,000 | — | 606,821 | — | 1,299,821 | ||||||||||||||
Repayments under revolving credit facilities | (693,000 | ) | — | (115,039 | ) | — | (808,039 | ) | |||||||||||
Borrowings under term loans | 11,250 | — | — | — | 11,250 | ||||||||||||||
Repayments under term loans | (11,250 | ) | — | — | — | (11,250 | ) | ||||||||||||
Borrowings under receivables securitization facility | — | — | 80,000 | — | 80,000 | ||||||||||||||
Repayments of other long-term debt | (1,920 | ) | (2,104 | ) | (16,508 | ) | — | (20,532 | ) | ||||||||||
Payments of other obligations | — | (407 | ) | (41,527 | ) | — | (41,934 | ) | |||||||||||
Other financing activities, net | (18,669 | ) | 12,340 | (552 | ) | — | (6,881 | ) | |||||||||||
Investment and intercompany note activity with parent | — | 481,951 | (283,630 | ) | (198,321 | ) | — | ||||||||||||
Dividends | — | (259,653 | ) | — | 259,653 | — | |||||||||||||
Net cash provided by financing activities | 386 | 232,127 | 229,565 | 61,332 | 523,410 | ||||||||||||||
Effect of exchange rate changes on cash and equivalents | — | (86 | ) | (1,937 | ) | — | (2,023 | ) | |||||||||||
Net increase in cash and equivalents | 67,505 | 13,162 | 13,491 | — | 94,158 | ||||||||||||||
Cash and equivalents, beginning of period | 77,926 | 13,693 | 58,869 | — | 150,488 | ||||||||||||||
Cash and equivalents, end of period | $ | 145,431 | $ | 26,855 | $ | 72,360 | $ | — | $ | 244,646 |
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