Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Sep. 30, 2014 | Oct. 24, 2014 | |
Document and Entity Information [Abstract] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 30-Sep-14 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q3 | ' |
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 | ' | 303,035,573 |
Unaudited_Condensed_Consolidat
Unaudited Condensed Consolidated Balance Sheets (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Current Assets: | ' | ' |
Cash and equivalents | $244,646 | $150,488 |
Receivables, net | 609,434 | 458,094 |
Inventory | 1,341,325 | 1,076,952 |
Deferred income taxes | 73,997 | 63,938 |
Prepaid expenses and other current assets | 76,136 | 50,345 |
Total Current Assets | 2,345,538 | 1,799,817 |
Property and Equipment, net | 612,292 | 546,651 |
Intangible Assets: | ' | ' |
Goodwill | 2,257,153 | 1,937,444 |
Other intangibles, net | 221,049 | 153,739 |
Other Assets | 98,546 | 81,123 |
Total Assets | 5,534,578 | 4,518,774 |
Current Liabilities: | ' | ' |
Accounts payable | 403,587 | 349,069 |
Accrued expenses: | ' | ' |
Accrued payroll-related liabilities | 88,082 | 58,695 |
Sales taxes payable | 45,098 | 30,701 |
Other accrued expenses | 127,838 | 109,373 |
Contingent consideration liabilities | 2,288 | 52,465 |
Other current liabilities | 31,587 | 36,115 |
Current portion of long-term obligations | 72,908 | 41,535 |
Total Current Liabilities | 771,388 | 677,953 |
Long-Term Obligations, Excluding Current Portion | 1,825,133 | 1,264,246 |
Deferred Income Taxes | 159,270 | 133,822 |
Other Noncurrent Liabilities | 111,093 | 92,008 |
Stockholders’ Equity: | ' | ' |
Common stock, $0.01 par value,1,000,000,000 shares authorized, 303,031,358 and 300,805,276 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively | 3,030 | 3,008 |
Additional paid-in capital | 1,044,004 | 1,006,084 |
Retained earnings | 1,622,692 | 1,321,642 |
Accumulated other comprehensive (loss) income | -2,032 | 20,011 |
Total Stockholders’ Equity | 2,667,694 | 2,350,745 |
Total Liabilities and Stockholders’ Equity | $5,534,578 | $4,518,774 |
Unaudited_Condensed_Consolidat1
Unaudited Condensed Consolidated Balance Sheets (Parenthetical) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
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 | 303,031,358 | 300,805,276 |
Common stock, shares outstanding | 303,031,358 | 300,805,276 |
Unaudited_Condensed_Consolidat2
Unaudited Condensed Consolidated Statements of Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Income Statement [Abstract] | ' | ' | ' | ' |
Revenue | $1,721,024 | $1,298,094 | $5,055,933 | $3,745,839 |
Cost of goods sold | 1,056,613 | 780,187 | 3,068,579 | 2,216,110 |
Gross margin | 664,411 | 517,907 | 1,987,354 | 1,529,729 |
Facility and warehouse expenses | 133,330 | 108,349 | 387,995 | 311,480 |
Distribution expenses | 148,572 | 109,593 | 432,445 | 320,033 |
Selling, general and administrative expenses | 192,229 | 153,546 | 563,344 | 436,614 |
Restructuring and acquisition related expenses | 3,594 | 2,206 | 12,816 | 7,391 |
Depreciation and amortization | 30,498 | 20,818 | 87,136 | 57,850 |
Operating income | 156,188 | 123,395 | 503,618 | 396,361 |
Other expense (income): | ' | ' | ' | ' |
Interest expense, net | 16,394 | 15,200 | 48,140 | 36,287 |
Loss on debt extinguishment | 0 | 0 | 324 | 2,795 |
Change in fair value of contingent consideration liabilities | -12 | -712 | 2,000 | -1,765 |
Other income, net | -18 | -1,562 | -1,021 | -1,737 |
Total other expense, net | 16,388 | 14,350 | 45,443 | 39,110 |
Income before provision for income taxes | 139,800 | 109,045 | 458,175 | 357,251 |
Provision for income taxes | 47,564 | 35,600 | 155,926 | 123,492 |
Equity in earnings of unconsolidated subsidiaries | -721 | 0 | -1,199 | 0 |
Net income | $91,515 | $73,445 | $301,050 | $233,759 |
Earnings per share: | ' | ' | ' | ' |
Basic | $0.30 | $0.24 | $1 | $0.78 |
Diluted | $0.30 | $0.24 | $0.98 | $0.77 |
Unaudited_Condensed_Consolidat3
Unaudited Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net income | $91,515 | $73,445 | $301,050 | $233,759 |
Other comprehensive income (loss), net of tax: | ' | ' | ' | ' |
Foreign currency translation | -39,329 | 28,514 | -24,013 | 6,330 |
Net change in unrecognized gains/losses on derivative instruments, net of tax | 817 | 625 | 2,067 | 3,986 |
Change in unrealized gain on pension plan, net of tax | -30 | 0 | -97 | 0 |
Total other comprehensive (loss) income | -38,542 | 29,139 | -22,043 | 10,316 |
Total comprehensive income | $52,973 | $102,584 | $279,007 | $244,075 |
Unaudited_Condensed_Consolidat4
Unaudited Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net income | $301,050 | $233,759 |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' |
Depreciation and amortization | 90,647 | 61,868 |
Stock-based compensation expense | 16,967 | 16,292 |
Excess tax benefit from stock-based payments | -14,455 | -15,998 |
Other | 3,440 | 7,424 |
Changes in operating assets and liabilities, net of effects from acquisitions: | ' | ' |
Receivables | -69,680 | -35,287 |
Inventory | -55,266 | -18,207 |
Prepaid income taxes/income taxes payable | 20,858 | 40,551 |
Accounts payable | 1,433 | 1,641 |
Other operating assets and liabilities | 27,648 | 48,886 |
Net cash provided by operating activities | 322,642 | 340,929 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -100,191 | -61,126 |
Proceeds from sales of property and equipment | 3,174 | 1,459 |
Investments in unconsolidated subsidiaries | -2,240 | -9,136 |
Acquisitions, net of cash acquired | -650,614 | -395,974 |
Net cash used in investing activities | -749,871 | -464,777 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of stock options | 6,520 | 13,647 |
Excess tax benefit from stock-based payments | 14,455 | 15,998 |
Proceeds from issuance of senior notes | 0 | 600,000 |
Borrowings under revolving credit facility | 1,299,821 | 399,758 |
Repayments under revolving credit facility | -808,039 | -745,313 |
Borrowings under term loans | 11,250 | 35,000 |
Repayments under term loans | -11,250 | -11,250 |
Borrowings under receivables securitization facility | 80,000 | 41,500 |
Repayments under receivables securitization facility | 0 | -111,500 |
Repayments of other long-term debt | -20,532 | -19,518 |
Payments of other obligations | -41,934 | -32,091 |
Other financing activities, net | -6,881 | -16,912 |
Net cash provided by financing activities | 523,410 | 169,319 |
Effect of exchange rate changes on cash and equivalents | -2,023 | 2,096 |
Net increase in cash and equivalents | 94,158 | 47,567 |
Cash and equivalents, beginning of period | 150,488 | 59,770 |
Cash and equivalents, end of period | 244,646 | 107,337 |
Supplemental disclosure of cash paid for: | ' | ' |
Income taxes, net of refunds | 135,447 | 82,536 |
Interest | 38,399 | 22,853 |
Supplemental disclosure of noncash investing and financing activities: | ' | ' |
Notes payable and other obligations, including notes issued and debt assumed in connection with business acquisitions | 87,731 | 10,728 |
Contingent consideration liabilities | 5,854 | 3,854 |
Non-cash property and equipment additions | $4,852 | $2,657 |
Unaudited_Condensed_Consolidat5
Unaudited Condensed Consolidated Statements of Stockholders' Equity (USD $) | Total | Common Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive (Loss) Income |
In Thousands, except Share data | |||||
Beginning Balance at Dec. 31, 2013 | $2,350,745 | $3,008 | $1,006,084 | $1,321,642 | $20,011 |
Beginning Balance, shares at Dec. 31, 2013 | ' | 300,805,000 | ' | ' | ' |
Net income | 301,050 | ' | ' | ' | ' |
Other comprehensive income (loss) | -22,043 | ' | ' | ' | -22,043 |
Restricted stock units vested, shares | ' | 975,000 | ' | ' | ' |
Restricted stock units vested, value | ' | 10 | -10 | ' | ' |
Stock-based compensation expense | 16,967 | ' | 16,967 | ' | ' |
Exercise of stock options, shares | 1,250,620 | 1,251,000 | ' | ' | ' |
Exercise of stock options, value | 6,520 | 12 | 6,508 | ' | ' |
Excess tax benefit from stock-based payments | 14,455 | ' | 14,455 | ' | ' |
Ending Balance at Sep. 30, 2014 | $2,667,694 | $3,030 | $1,044,004 | $1,622,692 | ($2,032) |
Ending Balance, shares at Sep. 30, 2014 | ' | 303,031,000 | ' | ' | ' |
Interim_Financial_Statements
Interim Financial Statements | 9 Months Ended |
Sep. 30, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ' |
Interim Financial Statements | ' |
The unaudited financial statements presented in this report 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 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 most recent Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on March 3, 2014. | |
As described in Note 8, "Business Combinations," on January 3, 2014, we completed our acquisition of Keystone Automotive Holdings, Inc. ("Keystone Specialty"), a distributor and marketer of specialty aftermarket equipment and accessories in North America. With our acquisition of Keystone Specialty, we present an additional reportable segment, Specialty. Our unaudited condensed consolidated financial statements reflect the impact of Keystone Specialty from the date of acquisition through September 30, 2014. |
Financial_Statement_Informatio
Financial Statement Information | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||
Summary of Significant Accounting Policies | ' | |||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||
The majority of our revenue is derived from the sale of vehicle parts. Revenue is recognized when the products are shipped to, delivered to or picked up by customers and title has transferred, subject to an allowance for estimated returns, discounts and allowances that we estimate based upon historical information. We recorded a reserve for estimated returns, discounts and allowances of approximately $30.0 million and $26.6 million at September 30, 2014 and December 31, 2013, respectively. We present taxes assessed by governmental authorities collected from customers on a net basis. Therefore, the taxes are excluded from revenue on our Unaudited Condensed Consolidated Statements of Income and are shown as a current liability on our Unaudited Condensed Consolidated Balance Sheets until remitted. We recognize revenue from the sale of scrap, cores and other metals when title has transferred, which typically occurs upon delivery to the customer. | ||||||||||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||||||||
We recorded a reserve for uncollectible accounts of approximately $19.1 million and $14.4 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
Inventory | ||||||||||||||||||||||||
Inventory consists of the following (in thousands): | ||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Aftermarket and refurbished products | $ | 944,451 | $ | 706,600 | ||||||||||||||||||||
Salvage and remanufactured products | 396,874 | 370,352 | ||||||||||||||||||||||
$ | 1,341,325 | $ | 1,076,952 | |||||||||||||||||||||
Our acquisitions completed during the first nine months of 2014 and adjustments to preliminary valuations of inventory for certain of our 2013 acquisitions contributed $217.3 million of the increase in our aftermarket and refurbished products inventory and $13.0 million of the increase in our salvage and remanufactured products inventory during the nine months ended September 30, 2014. See Note 8, "Business Combinations," for further information on our acquisitions. | ||||||||||||||||||||||||
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 relationships, software and other technology related assets and covenants not to compete. | ||||||||||||||||||||||||
The changes in the carrying amount of goodwill by reportable segment during the nine months ended September 30, 2014 are as follows (in thousands): | ||||||||||||||||||||||||
North America | Europe | Specialty | Total | |||||||||||||||||||||
Balance as of January 1, 2014 | $ | 1,358,937 | $ | 578,507 | $ | — | $ | 1,937,444 | ||||||||||||||||
Business acquisitions and adjustments to previously recorded goodwill | 44,981 | 73,959 | 233,998 | 352,938 | ||||||||||||||||||||
Exchange rate effects | (6,332 | ) | (26,898 | ) | 1 | (33,229 | ) | |||||||||||||||||
Balance as of September 30, 2014 | $ | 1,397,586 | $ | 625,568 | $ | 233,999 | $ | 2,257,153 | ||||||||||||||||
The components of other intangibles are as follows (in thousands): | ||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Trade names and trademarks | $ | 165,262 | $ | (33,643 | ) | $ | 131,619 | $ | 143,577 | $ | (27,950 | ) | $ | 115,627 | ||||||||||
Customer relationships | 71,345 | (21,906 | ) | 49,439 | 29,583 | (10,770 | ) | 18,813 | ||||||||||||||||
Software and other technology related assets | 45,513 | (8,657 | ) | 36,856 | 20,384 | (2,718 | ) | 17,666 | ||||||||||||||||
Covenants not to compete | 6,199 | (3,064 | ) | 3,135 | 3,979 | (2,346 | ) | 1,633 | ||||||||||||||||
$ | 288,319 | $ | (67,270 | ) | $ | 221,049 | $ | 197,523 | $ | (43,784 | ) | $ | 153,739 | |||||||||||
During the nine months ended September 30, 2014, we recorded preliminary intangible asset valuations resulting from our 2014 acquisitions and adjustments to certain preliminary intangible asset valuations from our 2013 acquisitions, which included $24.7 million of trade names, $42.8 million of customer relationships, $26.8 million of software and other technology related assets and $2.4 million of covenants not to compete. The trade names, customer relationships, and software and technology related assets recorded in the nine months ended September 30, 2014 included $20.9 million, $23.1 million and $26.8 million, respectively, related to our acquisition of Keystone Specialty, as discussed in Note 8, "Business Combinations." | ||||||||||||||||||||||||
Trade names and trademarks are amortized over a useful life ranging from 10 to 30 years on a straight-line basis. Customer relationships are amortized over the expected period to be benefited (5 to 15 years) on an accelerated basis. Software and other technology related assets are amortized on a straight-line basis over the expected period to be benefited (five to six years). Covenants not to compete are amortized over the lives of the respective agreements, which range from one to five years, on a straight-line basis. Amortization expense for intangibles was $24.4 million and $9.0 million during the nine month periods ended September 30, 2014 and 2013, respectively. Estimated amortization expense for each of the five years in the period ending December 31, 2018 is $32.4 million, $29.4 million, $26.1 million, $23.7 million and $18.7 million, respectively. | ||||||||||||||||||||||||
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 that is supported by certain of the suppliers of those products. We record the estimated warranty costs at the time of sale using historical warranty claim information to project future warranty claims activity. The changes in the warranty reserve during the nine month period ended September 30, 2014 were as follows (in thousands): | ||||||||||||||||||||||||
Balance as of January 1, 2014 | $ | 12,447 | ||||||||||||||||||||||
Warranty expense | 22,890 | |||||||||||||||||||||||
Warranty claims | (20,514 | ) | ||||||||||||||||||||||
Balance as of September 30, 2014 | $ | 14,823 | ||||||||||||||||||||||
Investments in Unconsolidated Subsidiaries | ||||||||||||||||||||||||
As of September 30, 2014, the carrying value of our investments in unconsolidated subsidiaries was $9.5 million; of this amount, $7.6 million relates to our investment in ACM Parts Pty Ltd ("ACM Parts"). In August 2013, we entered into an agreement with Suncorp Group, a leading general insurance group in Australia and New Zealand, to develop ACM Parts, an alternative vehicle replacement parts business in those countries. We hold a 49% equity interest in the entity and will contribute our experience to help establish automotive parts recycling operations and to facilitate the procurement of aftermarket parts; Suncorp Group holds a 51% equity interest and will supply salvage vehicles to the venture as well as assist in establishing relationships with repair shops as customers. We are accounting for our interest in this subsidiary using the equity method of accounting, as our investment gives us the ability to exercise significant influence, but not control, over the investee. The total of our investment in ACM Parts and other unconsolidated subsidiaries is included within Other Assets on our Unaudited Condensed Consolidated Balance Sheets. Our equity in the net earnings of the investees for the three and nine months ended September 30, 2014 was not material. | ||||||||||||||||||||||||
Depreciation Expense | ||||||||||||||||||||||||
Included in Cost of Goods Sold on the Unaudited Condensed Consolidated Statements of Income is depreciation expense associated with our refurbishing, remanufacturing, and furnace operations as well as our distribution centers. | ||||||||||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||||||||
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 which supersedes most current 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. Entities adopting the standard have the option of using either a full retrospective or modified retrospective approach in the application of this guidance. ASU 2014-09 will be effective for the Company during the first quarter of our fiscal year 2017. Early adoption is not permitted. We are still evaluating the impact that ASU 2014-09 will have on our consolidated financial statements and related disclosures. | ||||||||||||||||||||||||
In June 2014, the FASB issued Accounting Standards Update 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period" ("ASU 2014-12"). This update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition, and requires the recognition of compensation cost in the period in which it becomes probable that the performance target will be achieved. ASU 2014-12 will be effective for the Company during the first quarter of our fiscal year 2016. Early adoption is permitted. The new standard can be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements as an adjustment to opening retained earnings. We do not anticipate the adoption of this guidance will have a material impact on our financial position, results of operations, cash flows, or disclosures. |
Equity_Incentive_Plans
Equity Incentive Plans | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||
Equity Incentive Plans | ' | |||||||||||||||||||||||
Equity Incentive Plans | ||||||||||||||||||||||||
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. RSUs may 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 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. 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. | ||||||||||||||||||||||||
During the nine months ended September 30, 2014, we granted 664,897 RSUs to employees. The fair value of RSUs that vested during the nine months ended September 30, 2014 was approximately $27.7 million. | ||||||||||||||||||||||||
Stock Options | ||||||||||||||||||||||||
Stock options vest over periods of up to five years, subject to a continued service condition. Stock options expire either 6 or 10 years from the date they are granted. During the nine months ended September 30, 2014, we granted 126,755 stock options to employees. The grant date fair value of these options was immaterial to the financial statements. | ||||||||||||||||||||||||
Restricted Stock | ||||||||||||||||||||||||
Restricted stock vests over a five year period, subject to a continued service condition. Shares of restricted stock may not be sold, pledged or otherwise transferred until they vest. | ||||||||||||||||||||||||
A summary of transactions in our stock-based compensation plans is as follows: | ||||||||||||||||||||||||
Shares | RSUs | Stock Options | Restricted Stock | |||||||||||||||||||||
Available For | ||||||||||||||||||||||||
Grant | Number | Weighted | Number | Weighted | Number | Weighted | ||||||||||||||||||
Outstanding | Average | Outstanding | Average | Outstanding | Average | |||||||||||||||||||
Grant Date | Exercise | Grant Date | ||||||||||||||||||||||
Fair Value | Price | Fair Value | ||||||||||||||||||||||
Balance, January 1, 2014 | 13,965,440 | 2,558,213 | $ | 16.63 | 6,832,331 | $ | 7.04 | 20,000 | $ | 9.3 | ||||||||||||||
Granted | (791,652 | ) | 664,897 | 31.82 | 126,755 | 32.31 | — | — | ||||||||||||||||
Exercised | — | — | — | (1,250,620 | ) | 5.21 | — | — | ||||||||||||||||
Vested | — | (975,462 | ) | 17.01 | — | — | (10,000 | ) | 9.3 | |||||||||||||||
Canceled | 142,887 | (89,138 | ) | 20.49 | (53,749 | ) | 13.42 | — | — | |||||||||||||||
Balance, September 30, 2014 | 13,316,675 | 2,158,510 | $ | 20.98 | 5,654,717 | $ | 7.95 | 10,000 | $ | 9.3 | ||||||||||||||
For the RSU grants that contain both a performance-based vesting condition and a time-based vesting condition, we recognize compensation expense under the accelerated attribution method, pursuant to which expense is recognized over the requisite service period for each separate vesting tranche of the award. During the three and nine months ended September 30, 2014, we recognized $1.8 million and $6.5 million of stock based compensation expense, respectively, related to the RSUs containing a performance-based vesting condition. During the three and nine months ended September 30, 2013 we recognized $2.3 million and $6.0 million of stock based compensation expense, respectively, related to the RSUs containing a performance-based vesting condition. For all other awards, which are subject to only a time-based vesting condition, we recognize compensation expense on a straight-line basis over the requisite service period of the entire award. | ||||||||||||||||||||||||
In all cases, compensation expense is adjusted to reflect estimated forfeitures. When estimating forfeitures, we consider voluntary and involuntary termination behavior as well as analysis of historical forfeitures. | ||||||||||||||||||||||||
The components of pre-tax stock-based compensation expense are as follows (in thousands): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
RSUs | $ | 4,434 | $ | 4,559 | $ | 14,625 | $ | 12,674 | ||||||||||||||||
Stock options | 703 | 1,124 | 2,203 | 3,457 | ||||||||||||||||||||
Restricted stock | 47 | 47 | 139 | 161 | ||||||||||||||||||||
Total stock-based compensation expense | $ | 5,184 | $ | 5,730 | $ | 16,967 | $ | 16,292 | ||||||||||||||||
The following table sets forth the classification of total stock-based compensation expense included in our Unaudited Condensed Consolidated Statements of Income (in thousands): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Cost of goods sold | $ | 105 | $ | 98 | $ | 308 | $ | 294 | ||||||||||||||||
Facility and warehouse expenses | 527 | 687 | 1,672 | 2,058 | ||||||||||||||||||||
Selling, general and administrative expenses | 4,552 | 4,945 | 14,987 | 13,940 | ||||||||||||||||||||
5,184 | 5,730 | 16,967 | 16,292 | |||||||||||||||||||||
Income tax benefit | (1,996 | ) | (2,235 | ) | (6,532 | ) | (6,354 | ) | ||||||||||||||||
Total stock-based compensation expense, net of tax | $ | 3,188 | $ | 3,495 | $ | 10,435 | $ | 9,938 | ||||||||||||||||
We have not capitalized any stock-based compensation costs during either of the nine month periods ended September 30, 2014 or 2013. | ||||||||||||||||||||||||
As of September 30, 2014, unrecognized compensation expense related to unvested RSUs and stock options is expected to be recognized as follows (in thousands): | ||||||||||||||||||||||||
RSUs | Stock | Total | ||||||||||||||||||||||
Options | ||||||||||||||||||||||||
Remainder of 2014 | $ | 4,292 | $ | 724 | $ | 5,016 | ||||||||||||||||||
2015 | 13,459 | 396 | 13,855 | |||||||||||||||||||||
2016 | 8,433 | 331 | 8,764 | |||||||||||||||||||||
2017 | 5,049 | 9 | 5,058 | |||||||||||||||||||||
2018 | 2,553 | — | 2,553 | |||||||||||||||||||||
2019 | 110 | — | 110 | |||||||||||||||||||||
Total unrecognized compensation expense | $ | 33,896 | $ | 1,460 | $ | 35,356 | ||||||||||||||||||
LongTerm_Obligations
Long-Term Obligations | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Long-Term Obligations | ' | |||||||
Long-Term Obligations | ||||||||
Long-Term Obligations consist of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Senior secured credit agreement: | ||||||||
Term loans payable | $ | 438,750 | $ | 438,750 | ||||
Revolving credit facility | 693,299 | 233,804 | ||||||
Senior notes | 600,000 | 600,000 | ||||||
Receivables securitization facility | 80,000 | — | ||||||
Notes payable through October 2018 at weighted average interest rates of 1.1% | 53,994 | 15,730 | ||||||
Other long-term debt at weighted average interest rates of 2.9% and 3.5%, respectively | 31,998 | 17,497 | ||||||
1,898,041 | 1,305,781 | |||||||
Less current maturities | (72,908 | ) | (41,535 | ) | ||||
$ | 1,825,133 | $ | 1,264,246 | |||||
Senior Secured Credit Agreement | ||||||||
On March 27, 2014, LKQ Corporation, LKQ Delaware LLP, and certain other subsidiaries (collectively, the "Borrowers") entered into a third amended and restated credit agreement (the "Credit Agreement") with the several lenders from time to time party thereto, Wells Fargo Bank, National Association, as administrative agent; Bank of America, N.A., as syndication agent; The Bank of Tokyo-Mitsubishi UFJ, LTD. ("BTMU") and RBS Citizens, N.A., as co-documentation agents; and Wells Fargo Securities, LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated, BTMU, and RBS Citizens, N.A., as joint bookrunners and joint lead arrangers. The Credit Agreement retains many of the terms of the Company’s second amended and restated credit agreement dated May 3, 2013 while also modifying certain terms to (1) extend the maturity date by one year to May 3, 2019; (2) increase the total availability under the Credit Agreement from $1.8 billion to $2.3 billion (composed of $1.69 billion in the revolving credit facility's multicurrency component, $165 million in the revolving credit facility's U.S. dollar only component, and $450 million of term loans); (3) reduce the applicable margin on outstanding borrowings under the Credit Agreement; (4) reduce the commitment fee percentage we pay on average daily unused amounts under the revolving credit facility; (5) allow for additional unsecured foreign borrowings; (6) adjust certain limitations on our ability to make restricted payments; and (7) make other immaterial or clarifying modifications and amendments to the terms of the Company's second amended and restated credit agreement. The Credit Agreement allows the Company to increase the amount of the revolving credit facility or obtain incremental term loans up to the greater of $400 million or the amount that may be borrowed while maintaining a senior secured leverage ratio of less than or equal to 2.50 to 1.00, subject to the agreement of the lenders. The proceeds of the Credit Agreement were used to repay outstanding revolver borrowings and to pay fees related to the amendment and restatement. | ||||||||
Amounts under the revolving credit facility are due and payable upon maturity of the Credit Agreement on May 3, 2019. Term loan borrowings are due and payable in quarterly installments equal to 1.25% of the original principal amount beginning on June 30, 2014 with the remaining balance due and payable on the maturity date of the Credit Agreement. 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 contains customary covenants that provide limitations and conditions on our ability to enter into certain transactions. The Credit Agreement also contains financial and affirmative covenants under which we (i) may not exceed a maximum net leverage ratio of 3.50 to 1.00 except in connection with permitted acquisitions with aggregate consideration in excess of $200 million during any period of four consecutive fiscal quarters in which case the maximum net leverage ratio may increase to 4.00 to 1.00 for the subsequent four fiscal quarters and (ii) are required to maintain a minimum interest coverage ratio of 3.00 to 1.00. | ||||||||
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 5, "Derivative Instruments and Hedging Activities," the weighted average interest rates on borrowings outstanding under the Credit Agreement at September 30, 2014 and December 31, 2013 were 2.35% and 3.05%, respectively. We also pay a commitment fee based on the average daily unused amount of the revolving credit facility. The commitment fee is subject to change in increments of 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, as well as a fronting fee of 0.125% to the issuing bank, which are due quarterly in arrears. Borrowings under the Credit Agreement totaled $1.1 billion and $672.6 million at September 30, 2014 and December 31, 2013, respectively, of which $22.5 million was classified as current maturities at both September 30, 2014 and December 31, 2013. As of September 30, 2014, there were letters of credit outstanding in the aggregate amount of $60.4 million. The amounts available under the revolving credit facility are reduced by the amounts outstanding under letters of credit, and thus availability under the revolving credit facility at September 30, 2014 was $1.1 billion. | ||||||||
Related to the execution of the Credit Agreement in March 2014, we incurred $3.7 million of fees, of which $3.4 million were capitalized within Other Assets on our Unaudited Condensed Consolidated Balance Sheet and are amortized over the term of the agreement. The remaining $0.3 million of fees were expensed during the nine months ended September 30, 2014 as a loss on debt extinguishment. Related to the execution of the second amended and restated credit agreement in May 2013, we incurred $7.2 million of fees, of which $6.1 million were capitalized within Other Assets on our Unaudited Condensed Consolidated Balance Sheet. The remaining $1.1 million of fees, together with $1.7 million of capitalized debt issuance costs related to the original credit agreement, were expensed during the nine months ended September 30, 2013 as a loss on debt extinguishment. | ||||||||
Senior Notes | ||||||||
On May 9, 2013, LKQ Corporation completed an offering of $600 million aggregate principal amount of senior notes due May 15, 2023 (the "Original Notes") in a private placement conducted pursuant to Rule 144A and Regulation S under the Securities Act of 1933. In April 2014, LKQ Corporation completed an offer to exchange $600 million aggregate principal amount of registered 4.75% Senior Notes due 2023 (the "Notes") for the Original Notes. The Notes are governed by the Indenture dated as of May 9, 2013 among LKQ Corporation, certain of our subsidiaries (the "Guarantors") and U.S. Bank National Association, as trustee. The Notes are substantially identical to the Original Notes, except the Notes are registered under the Securities Act of 1933, and the transfer restrictions, registration rights, and related additional interest provisions applicable to the Original Notes do not apply to the Notes. | ||||||||
The Notes bear interest at a rate of 4.75% per year from the date of the original issuance or from the most recent payment date on which interest has been paid or provided for. Interest on the Notes is payable in arrears on May 15 and November 15 of each year. The first interest payment was made on November 15, 2013. The Notes are fully and unconditionally guaranteed, jointly and severally, by the Guarantors. | ||||||||
The Notes and the 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 Notes are effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the Notes to the extent of the assets of those subsidiaries. | ||||||||
Receivables Securitization Facility | ||||||||
On September 28, 2012, we entered into a three year receivables securitization facility with BTMU as Administrative Agent. 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 up to $80 million in 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. On September 29, 2014, the parties amended the terms of the facility to: (i) extend the term of the facility to October 2, 2017; (ii) increase the maximum amount available to $97 million; and (iii) make other clarifying and updating changes. | ||||||||
The sale of the ownership interest in the receivables is accounted for as a secured borrowing in our Unaudited Condensed 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 investors. As of September 30, 2014, $123.4 million of net receivables were collateral for the investment under the receivables facility. There were no borrowings outstanding under the receivables facility as of December 31, 2013. | ||||||||
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. Commercial paper rates will be 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 September 30, 2014, the interest rate under the receivables facility was based on commercial paper rates and was 0.92%. The outstanding balance of $80 million as of September 30, 2014 was 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. |
Derivative_Instruments_and_Hed
Derivative Instruments and Hedging Activities | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
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, changing foreign exchange rates for certain foreign currency denominated transactions and changes in metals prices. We do not hold or issue derivatives for trading purposes. | |||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||
At September 30, 2014, we had interest rate swap agreements in place 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 or the Canadian Dealer Offered Rate (“CDOR”) 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 2015 through 2016. | |||||||||||||||||||||
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 changing exchange rates on these future cash flows, as well as minimizing the impact of fluctuating exchange rates on our results of operations through the respective dates of settlement. 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 (expense) when the underlying transaction has an impact on earnings. In the nine months ended September 30, 2014, we settled these foreign currency forward contracts through payments to the counterparties totaling $20.0 million. At that time, we also settled the underlying intercompany debt transactions. | |||||||||||||||||||||
The following table summarizes the notional amounts and fair values of our designated cash flow hedges as of September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||
Notional Amount | Fair Value at September 30, 2014 (USD) | Fair Value at December 31, 2013 (USD) | |||||||||||||||||||
30-Sep-14 | 31-Dec-13 | Other Noncurrent Liabilities | Other Accrued Expenses | Other Noncurrent Liabilities | |||||||||||||||||
Interest rate swap agreements | |||||||||||||||||||||
USD denominated | $ | 420,000 | $ | 420,000 | $ | 5,128 | $ | — | $ | 8,099 | |||||||||||
GBP denominated | £ | 50,000 | £ | 50,000 | 396 | — | 345 | ||||||||||||||
CAD denominated | C$ | 25,000 | C$ | 25,000 | 32 | — | 26 | ||||||||||||||
Foreign currency forward contracts | |||||||||||||||||||||
EUR denominated | € | — | € | 149,976 | — | 11,632 | — | ||||||||||||||
GBP denominated | £ | — | £ | 70,000 | — | 10,186 | — | ||||||||||||||
Total cash flow hedges | $ | 5,556 | $ | 21,818 | $ | 8,470 | |||||||||||||||
While our 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 not have a material effect on our Unaudited Condensed Consolidated Balance Sheets at September 30, 2014 or December 31, 2013. | |||||||||||||||||||||
The activity related to our cash flow hedges is included in Note 12, "Accumulated Other Comprehensive Income (Loss)." Ineffectiveness related to our cash flow hedges was immaterial to our results of operations during the three and nine months ended September 30, 2014 and September 30, 2013. We do not expect future ineffectiveness related to our cash flow hedges to have a material impact on our results of operations. | |||||||||||||||||||||
As of September 30, 2014, we estimate that $3.6 million of derivative losses (net of tax) included in Accumulated Other Comprehensive Income will be reclassified into our 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, as well as commodity forward contracts to manage our exposure to fluctuations in metals prices. 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 September 30, 2014 and December 31, 2013, along with the effect on our results of operations during each of the nine month periods ended September 30, 2014 and September 30, 2013, were immaterial. |
Fair_Value_Measurements
Fair Value Measurements | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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 value our financial assets and liabilities, and during the nine months ended September 30, 2014, 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 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 September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
Balance as of September 30, 2014 | Fair Value Measurements as of September 30, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Cash surrender value of life insurance policies | $ | 26,438 | $ | — | $ | 26,438 | $ | — | ||||||||
Total Assets | $ | 26,438 | $ | — | $ | 26,438 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration liabilities | $ | 7,301 | $ | — | $ | — | $ | 7,301 | ||||||||
Deferred compensation liabilities | 25,834 | — | 25,834 | — | ||||||||||||
Interest rate swaps | 5,556 | — | 5,556 | — | ||||||||||||
Total Liabilities | $ | 38,691 | $ | — | $ | 31,390 | $ | 7,301 | ||||||||
Balance as of December 31, 2013 | Fair Value Measurements as of December 31, 2013 | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Cash surrender value of life insurance policies | $ | 25,745 | $ | — | $ | 25,745 | $ | — | ||||||||
Total Assets | $ | 25,745 | $ | — | $ | 25,745 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration liabilities | $ | 55,653 | $ | — | $ | — | $ | 55,653 | ||||||||
Deferred compensation liabilities | 25,232 | — | 25,232 | — | ||||||||||||
Foreign currency forward contracts | 21,818 | — | 21,818 | — | ||||||||||||
Interest rate swaps | 8,470 | — | 8,470 | — | ||||||||||||
Total Liabilities | $ | 111,173 | $ | — | $ | 55,520 | $ | 55,653 | ||||||||
The cash surrender value of life insurance policies and deferred compensation liabilities are included in Other Assets and Other Noncurrent Liabilities, respectively, on our Unaudited Condensed Consolidated Balance Sheets. The contingent consideration liabilities are classified as a separate line item in current liabilities and within 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 foreign currency forward contracts is presented in Note 5, "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 as further described in Note 8, "Business Combinations." 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. These unobservable inputs include internally-developed assumptions of the probabilities of achieving specified targets, which are used to determine the resulting cash flows, and the applicable discount rate. Our Level 3 fair value measurements are established and updated quarterly by our corporate accounting department using current information about these key assumptions, with the input and oversight of our operational and executive management teams. We evaluate the performance of the business during the period compared to our previous expectations, along with any changes to our future projections, and update the estimated cash flows accordingly. In addition, we consider changes to our cost of capital and changes to the probability of achieving the earnout payment targets when updating our discount rate on a quarterly basis. | ||||||||||||||||
The significant unobservable inputs used in the fair value measurements of our Level 3 contingent consideration liabilities were as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Unobservable Input | (Weighted Average) | |||||||||||||||
Probability of achieving payout targets | 78.7 | % | 70.6 | % | ||||||||||||
Discount rate | 7.5 | % | 6.5 | % | ||||||||||||
A decrease in the assessed probabilities of achieving the targets or an increase in the discount rate, in isolation, would result in a lower fair value measurement. Changes in the values of the liabilities are recorded in Change in Fair Value of Contingent Consideration Liabilities within Other Expense (Income) on our Unaudited Condensed Consolidated Statements of Income. | ||||||||||||||||
Changes in the fair value of our contingent consideration obligations are as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning Balance | $ | 8,762 | $ | 49,473 | $ | 55,653 | $ | 90,009 | ||||||||
Contingent consideration liabilities recorded for business acquisitions | (1,203 | ) | 1,204 | 5,854 | 3,854 | |||||||||||
Payments | — | — | (52,305 | ) | (38,349 | ) | ||||||||||
Increase (decrease) in fair value included in earnings | 12 | 712 | (2,000 | ) | 1,765 | |||||||||||
Exchange rate effects | (270 | ) | 3,096 | 99 | (2,794 | ) | ||||||||||
Ending Balance | $ | 7,301 | $ | 54,485 | $ | 7,301 | $ | 54,485 | ||||||||
The purchase price for our 2011 acquisition of Euro Car Parts Holdings Limited included contingent payments depending on the achievement of certain annual performance targets in 2012 and 2013. The performance target for each of the measurement periods was exceeded, and therefore, we settled the liabilities related to the 2012 and 2013 performance periods for the maximum amounts of £25 million and £30 million, respectively. During April 2014, we settled the liability for the 2013 performance period through a cash payment of $44.8 million (£26.9 million) and the issuance of notes for $5.1 million (£3.1 million). The liability for the 2012 performance period was settled during the three months ended March 31, 2013 through a cash payment of $33.9 million (£22.4 million) and the issuance of notes for $3.9 million (£2.6 million). During the three months ended September 30, 2014, we finalized our acquisition-date estimates of the likelihood of payment for certain of our contingent payment arrangements, which resulted in a reduction to our contingent consideration liabilities of $1.2 million, with the offset recorded as a reduction of goodwill. | ||||||||||||||||
Of the amounts included in earnings for the nine months ended September 30, 2014, $0.2 million of gains were related to contingent consideration obligations outstanding as of September 30, 2014; all of the amounts included in earnings for the three months ended September 30, 2014 related to contingent consideration obligations outstanding as of September 30, 2014. Substantially all of the gains included in earnings during the three and nine months ended September 30, 2013 related to contingent consideration obligations that were settled by September 30, 2014. The changes in the fair value of contingent consideration obligations included in earnings during the respective periods in 2014 and 2013 reflect the quarterly reassessment of each obligation's fair value, including an analysis of the significant inputs used in the valuation, as well as the accretion of the present value discount. | ||||||||||||||||
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 September 30, 2014 and December 31, 2013, the fair value of our credit agreement borrowings reasonably approximated the carrying value of $1.1 billion and $673 million, respectively. In addition, based on market conditions, the fair value of the outstanding borrowings under the receivables facility reasonably approximated the carrying value of $80 million at September 30, 2014; we did not have any borrowings outstanding under the receivables facility as of December 31, 2013. As of September 30, 2014, the fair value of our senior notes was approximately $581 million compared to a carrying value of $600 million. | ||||||||||||||||
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 values by calculating the upfront cash payment a market participant would require to assume these obligations. The fair value of our senior notes 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. |
Commitments_and_Contingencies
Commitments and Contingencies | 9 Months Ended | |||
Sep. 30, 2014 | ||||
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 September 30, 2014 are as follows (in thousands): | ||||
Three months ending December 31, 2014 | $ | 35,353 | ||
Years ending December 31: | ||||
2015 | 134,572 | |||
2016 | 114,205 | |||
2017 | 95,568 | |||
2018 | 78,838 | |||
2019 | 63,638 | |||
Thereafter | 251,142 | |||
Future Minimum Lease Payments | $ | 773,316 | ||
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. |
Business_Combinations
Business Combinations | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||||||||||
Business Combinations | ' | |||||||||||||||||||||||
Business Combinations | ||||||||||||||||||||||||
On January 3, 2014, we completed our acquisition of Keystone Specialty, which is a leading distributor and marketer of specialty aftermarket equipment and accessories in North America serving the following six product segments: truck and off-road; speed and performance; recreational vehicle; towing; wheels, tires and performance handling; and miscellaneous accessories. Total acquisition date fair value of the consideration for our Keystone Specialty acquisition was $471.1 million, composed of $427.1 million of cash (net of cash acquired), $31.5 million of notes payable and $12.6 million of other purchase price obligations (non-interest bearing). We recorded $234.0 million of goodwill related to our acquisition of Keystone Specialty, which we do not expect to be deductible for income tax purposes. In the period between January 3, 2014 and September 30, 2014, Keystone Specialty generated approximately $595.2 million of revenue and $24.4 million of net income. | ||||||||||||||||||||||||
In addition to our acquisition of Keystone Specialty, we made 19 acquisitions during the nine months ended September 30, 2014, including 9 wholesale businesses in North America, 8 wholesale businesses in Europe, and 2 self service retail operations. Our European acquisitions included seven aftermarket parts distribution businesses in the Netherlands, five of which were customers of and distributors for our Netherlands subsidiary, Sator Beheer B.V. ("Sator"). Our European acquisitions were completed with the objective of expanding our distribution network in the Netherlands; our other acquisitions completed during the nine months ended September 30, 2014 enabled us to expand into new product lines and enter new markets. Total acquisition date fair value of the consideration for these additional acquisitions was $233.6 million, composed of $210.7 million of cash (net of cash acquired), $11.8 million of notes payable, $0.3 million of other purchase price obligations (non-interest bearing), $5.9 million for the estimated value of contingent payments to former owners (with maximum potential payments totaling $8.3 million), and $4.9 million of pre-existing balances between us and the acquired entities considered to be effectively settled as a result of the acquisitions. During the nine months ended September 30, 2014, we recorded $118.9 million of goodwill related to these acquisitions and immaterial adjustments to preliminary purchase price allocations related to certain of our 2013 acquisitions. We expect $32.2 million of the $118.9 million of goodwill recorded to be deductible for income tax purposes. In the period between the acquisition dates and September 30, 2014, these acquisitions generated revenue of $142.7 million and a net loss of $1.5 million. | ||||||||||||||||||||||||
In October 2014, we completed the acquisition of two businesses in our Specialty segment: a supplier of replacement parts, supplies and accessories for recreational vehicles, and a specialty aftermarket vehicle equipment and accessories distributor. These acquisitions allowed us to expand our market share in these product categories. The preliminary aggregate purchase price for these acquisitions was approximately $112 million, net of cash acquired. We are in the process of completing the purchase accounting for our October 2014 acquisitions, and as a result, we are unable to disclose the amounts recognized for each major class of assets acquired and liabilities assumed, or the pro forma effect of the acquisitions on our results of operations. | ||||||||||||||||||||||||
On May 1, 2013, we acquired the shares of Sator, a vehicle mechanical aftermarket parts distribution company based in the Netherlands, with operations in the Netherlands, Belgium and Northern France. With the acquisition of Sator, we expanded our geographic presence in the European vehicle mechanical aftermarket products market into continental Europe to complement our existing U.K. operations. Total acquisition date fair value of the consideration for the acquisition of Sator was €209.8 million ($272.8 million) of cash, net of cash acquired. We recorded $142.7 million of goodwill related to our acquisition of Sator, which we do not expect will be deductible for income tax purposes. | ||||||||||||||||||||||||
In addition to our acquisition of Sator, we made 19 acquisitions during 2013, including 10 wholesale businesses in North America, 7 wholesale businesses in Europe and 2 self service retail operations. Our European acquisitions included five automotive paint distribution businesses in the U.K., which enabled us to expand our collision product offerings. Our other acquisitions completed during 2013 enabled us to expand into new product lines and enter new markets. Total acquisition date fair value of the consideration for these additional 2013 acquisitions was $146.1 million, composed of $134.6 million of cash (net of cash acquired), $7.5 million of notes payable, $0.2 million of other purchase price obligations (non-interest bearing) and $3.9 million for the estimated value of contingent payments to former owners (with maximum potential payments totaling $5.0 million). During the year ended December 31, 2013, we recorded $92.7 million of goodwill related to these acquisitions and immaterial adjustments to preliminary purchase price allocations related to certain of our 2012 acquisitions. We expect $18.3 million of the $92.7 million of goodwill recorded to be deductible for income tax purposes. | ||||||||||||||||||||||||
Our acquisitions are accounted for under the purchase method of accounting and are included in our unaudited condensed consolidated financial statements from the dates of acquisition. The purchase prices were allocated to the net assets acquired based upon estimated fair market values at the dates of acquisition. The purchase price allocations for the acquisitions made during the nine months ended September 30, 2014 and the last three months of 2013 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 final estimation of 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. | ||||||||||||||||||||||||
The preliminary purchase price allocations for the acquisitions completed during the nine months ended September 30, 2014 and the year ended December 31, 2013 are as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended | Year Ended | |||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||
Keystone Specialty | Other Acquisitions | Total | Sator | Other Acquisitions | Total | |||||||||||||||||||
Receivables | $ | 48,473 | $ | 57,191 | $ | 105,664 | $ | 61,639 | $ | 38,685 | $ | 100,324 | ||||||||||||
Receivable reserves | (4,403 | ) | (2,817 | ) | (7,220 | ) | (8,563 | ) | (3,246 | ) | (11,809 | ) | ||||||||||||
Inventory | 151,013 | 79,260 | 230,273 | 71,784 | 26,455 | 98,239 | ||||||||||||||||||
Income taxes receivable | 13,972 | — | 13,972 | — | — | — | ||||||||||||||||||
Prepaid expenses and other current assets | 8,339 | 3,266 | 11,605 | 7,184 | 1,933 | 9,117 | ||||||||||||||||||
Property and equipment | 38,080 | 16,389 | 54,469 | 19,484 | 14,015 | 33,499 | ||||||||||||||||||
Goodwill | 233,998 | 118,940 | 352,938 | 142,721 | 92,726 | 235,447 | ||||||||||||||||||
Other intangibles | 70,830 | 25,897 | 96,727 | 45,293 | 12,353 | 57,646 | ||||||||||||||||||
Other assets | 7,805 | 5,623 | 13,428 | 2,049 | 1,251 | 3,300 | ||||||||||||||||||
Deferred income taxes | (17,418 | ) | 429 | (16,989 | ) | (14,100 | ) | (564 | ) | (14,664 | ) | |||||||||||||
Current liabilities assumed | (65,439 | ) | (34,880 | ) | (100,319 | ) | (49,593 | ) | (36,799 | ) | (86,392 | ) | ||||||||||||
Debt assumed | — | (26,425 | ) | (26,425 | ) | — | (664 | ) | (664 | ) | ||||||||||||||
Other noncurrent liabilities assumed | (14,147 | ) | (9,282 | ) | (23,429 | ) | (5,074 | ) | — | (5,074 | ) | |||||||||||||
Contingent consideration liabilities | — | (5,854 | ) | (5,854 | ) | — | (3,854 | ) | (3,854 | ) | ||||||||||||||
Other purchase price obligations | (12,553 | ) | (313 | ) | (12,866 | ) | — | (214 | ) | (214 | ) | |||||||||||||
Notes issued | (31,500 | ) | (11,842 | ) | (43,342 | ) | — | (7,482 | ) | (7,482 | ) | |||||||||||||
Settlement of pre-existing balances | — | (4,922 | ) | (4,922 | ) | — | — | — | ||||||||||||||||
Cash used in acquisitions, net of cash acquired | $ | 427,050 | $ | 210,660 | $ | 637,710 | $ | 272,824 | $ | 134,595 | $ | 407,419 | ||||||||||||
The primary reason for our acquisitions made during the nine months ended September 30, 2014 and the year ended December 31, 2013 was to create economic value for our stockholders by enhancing our position as a leading source for alternative collision and mechanical repair products and expanding into other product lines and businesses that may benefit from our operating strengths. Our acquisition of Keystone Specialty allows us to enter into new product lines and increase the size of our addressable market. In addition, we believe that the acquisition creates potential cross-selling opportunities and logistics and administrative cost synergies, which contributed to the goodwill recorded on the Keystone Specialty acquisition. Our other acquisitions enabled us to further expand our market presence, including continental Europe through the Sator acquisition, as well as to widen our product offerings such as paint and related equipment in the U.K. We believe that our Sator acquisition will allow for synergies within our European operations, most notably in procurement, warehousing and product management. These projected synergies contributed to the goodwill recorded on the Sator acquisition. | ||||||||||||||||||||||||
When we identify potential acquisitions, we attempt to target companies with a leading market share, an experienced management team and a workforce that provide 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 can 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 nine months ended September 30, 2014 as though they had been acquired as of January 1, 2013 and the businesses acquired during the year ended December 31, 2013 as though they had been acquired as of January 1, 2012. The pro forma adjustments are based upon unaudited financial information of the acquired entities (in thousands, except per share data): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Revenue, as reported | $ | 1,721,024 | $ | 1,298,094 | $ | 5,055,933 | $ | 3,745,839 | ||||||||||||||||
Revenue of purchased businesses for the period prior to acquisition: | ||||||||||||||||||||||||
Keystone Specialty | — | 177,324 | 3,443 | 540,826 | ||||||||||||||||||||
Sator | — | — | — | 126,309 | ||||||||||||||||||||
Other acquisitions | 4,815 | 101,971 | 116,326 | 371,312 | ||||||||||||||||||||
Pro forma revenue | $ | 1,725,839 | $ | 1,577,389 | $ | 5,175,702 | $ | 4,784,286 | ||||||||||||||||
Net income, as reported | $ | 91,515 | $ | 73,445 | $ | 301,050 | $ | 233,759 | ||||||||||||||||
Net income of purchased businesses for the period prior to acquisition, including pro forma purchase accounting adjustments: | ||||||||||||||||||||||||
Keystone Specialty | 180 | 7,142 | 514 | 24,769 | ||||||||||||||||||||
Sator | — | — | — | 5,712 | ||||||||||||||||||||
Other acquisitions | 3,623 | 5,059 | 8,053 | 11,505 | ||||||||||||||||||||
Pro forma net income | $ | 95,318 | $ | 85,646 | $ | 309,617 | $ | 275,745 | ||||||||||||||||
Earnings per share-basic, as reported | $ | 0.3 | $ | 0.24 | $ | 1 | $ | 0.78 | ||||||||||||||||
Effect of purchased businesses for the period prior to acquisition: | ||||||||||||||||||||||||
Keystone Specialty | 0 | 0.02 | 0 | 0.08 | ||||||||||||||||||||
Sator | — | — | — | 0.02 | ||||||||||||||||||||
Other acquisitions | 0.01 | 0.02 | 0.03 | 0.04 | ||||||||||||||||||||
Pro forma earnings per share-basic (a) | $ | 0.31 | $ | 0.29 | $ | 1.03 | $ | 0.92 | ||||||||||||||||
Earnings per share-diluted, as reported | $ | 0.3 | $ | 0.24 | $ | 0.98 | $ | 0.77 | ||||||||||||||||
Effect of purchased businesses for the period prior to acquisition: | ||||||||||||||||||||||||
Keystone Specialty | 0 | 0.02 | 0 | 0.08 | ||||||||||||||||||||
Sator | — | — | — | 0.02 | ||||||||||||||||||||
Other acquisitions | 0.01 | 0.02 | 0.03 | 0.04 | ||||||||||||||||||||
Pro forma earnings per share-diluted (a) | $ | 0.31 | $ | 0.28 | $ | 1.01 | $ | 0.91 | ||||||||||||||||
(a) 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 net realizable value, adjustments to depreciation on acquired property 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 other acquisitions includes an adjustment for intercompany sales between Sator and the five Netherlands distributors that would have been reflected as intercompany transactions if the acquisitions had occurred on January 1, 2013. Our cost of sales in the initial months after the acquisitions reflects the increased valuation of acquired inventory, which has the impact of temporarily reducing our gross margin. Moving this negative gross margin impact to the nine months ended September 30, 2013 for our pro forma disclosure has the effect of increasing our pro forma net income during the three and nine months ended September 30, 2014. Additionally, the pro forma impact of our acquisitions reflects the elimination of acquisition related expenses totaling $0.5 million and $2.3 million for the three and nine months ended September 30, 2014, respectively, primarily related to our May 2014 acquisitions of five aftermarket parts distribution businesses in the Netherlands. The pro forma impact of our acquisition related expenses for the three and nine months ended September 30, 2013 totaled $2.0 million and $6.0 million, respectively, primarily related to our May 2013 acquisition of Sator and our August 2013 acquisition of five U.K.-based paint distribution businesses. Refer to Note 9, "Restructuring and Acquisition Related Expenses," for further information on our acquisition related expenses. 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. |
Restructuring_and_Acquisition_
Restructuring and Acquisition Related Expenses | 9 Months Ended |
Sep. 30, 2014 | |
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 $1.3 million and $3.2 million for the three and nine months ended September 30, 2014, respectively. These expenses were primarily related to our 2014 acquisitions of seven aftermarket parts distribution businesses in the Netherlands, as well as other potential acquisitions. Expenses incurred during the three and nine months ended September 30, 2013 totaled $2.0 million and $6.0 million, respectively. Of these amounts, we incurred $1.4 million in the three and nine months ended September 30, 2013 related to our August 2013 acquisitions of five U.K.-based paint distribution businesses. Expenses for the nine months ended September 30, 2013 also included $3.6 million related to our May 2013 acquisition of Sator. These costs are expensed as incurred. | |
Acquisition Integration Plans | |
During the three and nine months ended September 30, 2014, we incurred $0.4 million and $5.8 million, respectively, of restructuring expenses as a result of the integration of our acquisition of Keystone Specialty into our existing business. These integration activities included the closure of duplicate facilities, termination of employees in connection with the consolidation of overlapping facilities with our existing business, and moving expenses. Future expenses to complete our integration plan are not expected to be material. | |
We incurred other restructuring costs related to our acquisitions during the three and nine months ended September 30, 2014 totaling $0.3 million and $2.2 million, respectively. Restructuring costs incurred during the three and nine months ended September 30, 2013 totaled $0.2 million and $1.4 million, respectively. These costs are a result of activities to integrate our acquisitions into our existing business, including the closure of duplicate facilities, termination of employees in connection with the consolidation of overlapping facilities with our existing business, moving expenses, and other third party services directly related to our acquisitions. | |
We expect to incur additional integration expenses related to the integration of certain of our acquisitions into our existing operations in the fourth quarter of 2014 and 2015. These integration activities are expected to include the closure of duplicate facilities, termination of employees in connection with the consolidation of overlapping facilities with our existing business, and moving expenses. Future expenses to complete these integration plans are not expected to be material. | |
European Restructuring Plan | |
In the third quarter of 2014, we initiated restructuring activities to eliminate overlapping positions within certain of our European operations. As a result of these restructuring activities, we incurred $1.6 million of expenses during the three months ended September 30, 2014, primarily for severance costs to terminated employees. While we do not expect material incremental expenses for this portion of the integration plan, we may incur additional expenses in the future as we continue to rationalize our European operations. |
Earnings_Per_Share
Earnings Per Share | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Earnings Per Share | ' | |||||||||||||||
Earnings Per Share | ||||||||||||||||
The following chart sets forth the computation of earnings per share (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net Income | $ | 91,515 | $ | 73,445 | $ | 301,050 | $ | 233,759 | ||||||||
Denominator for basic earnings per share—Weighted-average shares outstanding | 302,724 | 300,223 | 302,058 | 299,213 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
RSUs | 658 | 883 | 804 | 775 | ||||||||||||
Stock options | 2,817 | 3,564 | 2,988 | 3,765 | ||||||||||||
Restricted stock | 7 | 15 | 7 | 18 | ||||||||||||
Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding | 306,206 | 304,685 | 305,857 | 303,771 | ||||||||||||
Earnings per share, basic | $ | 0.3 | $ | 0.24 | $ | 1 | $ | 0.78 | ||||||||
Earnings per share, diluted | $ | 0.3 | $ | 0.24 | $ | 0.98 | $ | 0.77 | ||||||||
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 nine months ended September 30, 2014 and 2013 (in thousands). | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Antidilutive securities: | ||||||||||||||||
RSUs | 389 | — | 265 | — | ||||||||||||
Stock Options | 115 | — | 120 | — | ||||||||||||
Income_Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2014 | |
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 nine months ended September 30, 2014 was 34.0% compared with 34.6% for the comparable prior year period. In 2014, we expect a larger proportion of our annual pretax income to be generated in lower tax rate jurisdictions as a result of our expanding international operations. The effective income tax rate during the nine months ended September 30, 2013 reflects favorable discrete tax adjustments of $2.6 million. These favorable discrete tax adjustments included $1.6 million related to the revaluation of our net U.K. deferred tax liabilities as a result of reductions in the U.K. corporate income tax rate. In addition, we recorded a $0.9 million favorable deferred tax adjustment during the nine months ended September 30, 2013 resulting from changes in state tax legislation. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||||
The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands): | ||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||||
Foreign | Unrealized Gain (Loss) | Change in Unrealized Gain on Pension Plan | Accumulated | Foreign | Unrealized Gain (Loss) | Accumulated | ||||||||||||||||||||||||
Currency | on Cash Flow Hedges | Other | Currency | on Cash Flow Hedges | Other | |||||||||||||||||||||||||
Translation | Comprehensive | Translation | Comprehensive | |||||||||||||||||||||||||||
Income (Loss) | Income (Loss) | |||||||||||||||||||||||||||||
Beginning balance | $ | 40,222 | $ | (4,346 | ) | $ | 634 | $ | 36,510 | $ | (11,334 | ) | $ | (6,730 | ) | $ | (18,064 | ) | ||||||||||||
Pretax income (loss) | (39,329 | ) | (186 | ) | — | (39,515 | ) | 28,514 | (15,315 | ) | 13,199 | |||||||||||||||||||
Income tax effect | — | (7 | ) | — | (7 | ) | — | 5,647 | 5,647 | |||||||||||||||||||||
Reclassification of unrealized loss (gain) | — | 1,554 | (39 | ) | 1,515 | — | 15,956 | 15,956 | ||||||||||||||||||||||
Reclassification of deferred income taxes | — | (544 | ) | 9 | (535 | ) | — | (5,849 | ) | (5,849 | ) | |||||||||||||||||||
Hedge ineffectiveness | — | — | — | — | — | 293 | 293 | |||||||||||||||||||||||
Income tax effect | — | — | — | — | — | (107 | ) | (107 | ) | |||||||||||||||||||||
Ending balance | $ | 893 | $ | (3,529 | ) | $ | 604 | $ | (2,032 | ) | $ | 17,180 | $ | (6,105 | ) | $ | 11,075 | |||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||||||||
Foreign | Unrealized Gain (Loss) | Change in Unrealized Gain on Pension Plan | Accumulated | Foreign | Unrealized Gain (Loss) | Accumulated | ||||||||||||||||||||||||
Currency | on Cash Flow Hedges | Other | Currency | on Cash Flow Hedges | Other | |||||||||||||||||||||||||
Translation | Comprehensive | Translation | Comprehensive | |||||||||||||||||||||||||||
Income (Loss) | Income (Loss) | |||||||||||||||||||||||||||||
Beginning balance | $ | 24,906 | $ | (5,596 | ) | $ | 701 | $ | 20,011 | $ | 10,850 | $ | (10,091 | ) | $ | 759 | ||||||||||||||
Pretax income (loss) | (24,013 | ) | (362 | ) | — | (24,375 | ) | 6,330 | (14,170 | ) | (7,840 | ) | ||||||||||||||||||
Income tax effect | — | 39 | — | 39 | — | 5,305 | 5,305 | |||||||||||||||||||||||
Reclassification of unrealized loss (gain) | — | 3,647 | (129 | ) | 3,518 | — | 19,771 | 19,771 | ||||||||||||||||||||||
Reclassification of deferred income taxes | — | (1,257 | ) | 32 | (1,225 | ) | — | (7,211 | ) | (7,211 | ) | |||||||||||||||||||
Hedge ineffectiveness | — | — | — | — | — | 460 | 460 | |||||||||||||||||||||||
Income tax effect | — | — | — | — | — | (169 | ) | (169 | ) | |||||||||||||||||||||
Ending balance | $ | 893 | $ | (3,529 | ) | $ | 604 | $ | (2,032 | ) | $ | 17,180 | $ | (6,105 | ) | $ | 11,075 | |||||||||||||
Unrealized losses on our interest rate swap contracts totaling $1.6 million and $4.6 million were reclassified to interest expense in our Unaudited Condensed Consolidated Statements of Income during the three and nine months ended September 30, 2014, respectively. During the three and nine months ended September 30, 2013, unrealized losses of $1.5 million and $4.7 million, respectively, related to our interest rate swaps were reclassified to interest expense. The remaining reclassification of unrealized gains and losses during these periods related to our foreign currency forward contracts and were recorded to other income in our Unaudited Condensed Consolidated Statements of Income. These gains offset the remeasurement of certain of our intercompany balances as discussed in Note 5, "Derivative Instruments and Hedging Activities." The deferred income taxes related to our cash flow hedges were reclassified from Accumulated Other Comprehensive Income to income tax expense. |
Segment_and_Geographic_Informa
Segment and Geographic Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Segment Reporting [Abstract] | ' | |||||||||||||||||||
Segment and Geographic Information | ' | |||||||||||||||||||
Segment and Geographic Information | ||||||||||||||||||||
We have four operating segments: Wholesale – North America; Wholesale – Europe; Self Service; and Specialty. Our Specialty operating segment was formed with our January 3, 2014 acquisition of Keystone Specialty, as discussed in Note 8, "Business Combinations." 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. 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 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 | 18,029 | 9,411 | 4,314 | — | 31,754 | |||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
Third Party | $ | 928,307 | $ | 369,787 | $ | — | $ | — | $ | 1,298,094 | ||||||||||
Intersegment | — | — | — | — | — | |||||||||||||||
Total segment revenue | $ | 928,307 | $ | 369,787 | $ | — | $ | — | $ | 1,298,094 | ||||||||||
Segment EBITDA | $ | 108,863 | $ | 40,457 | $ | — | $ | — | $ | 149,320 | ||||||||||
Depreciation and amortization | 16,417 | 5,740 | — | — | 22,157 | |||||||||||||||
North America | Europe | Specialty | Eliminations | Consolidated | ||||||||||||||||
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 | 52,682 | 24,868 | 13,097 | — | 90,647 | |||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
Third Party | $ | 2,865,613 | $ | 880,226 | $ | — | $ | — | $ | 3,745,839 | ||||||||||
Intersegment | — | — | — | — | — | |||||||||||||||
Total segment revenue | $ | 2,865,613 | $ | 880,226 | $ | — | $ | — | $ | 3,745,839 | ||||||||||
Segment EBITDA | $ | 363,411 | $ | 103,946 | $ | — | $ | — | $ | 467,357 | ||||||||||
Depreciation and amortization | 48,555 | 13,313 | — | — | 61,868 | |||||||||||||||
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 and administrative expenses are allocated to the segments based on usage, with shared expenses apportioned based on the segment's percentage of consolidated revenue. Segment EBITDA excludes restructuring and acquisition related expenses, depreciation, amortization, interest, change in fair value of contingent consideration liabilities, taxes and equity in earnings of unconsolidated subsidiaries. Loss on debt extinguishment is considered a component of interest in calculating Segment EBITDA, as the write-off of debt issuance costs is similar to the treatment of debt issuance cost amortization. | ||||||||||||||||||||
The table below provides a reconciliation from Segment EBITDA to Net Income (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Segment EBITDA | $ | 191,554 | $ | 149,320 | $ | 608,102 | $ | 467,357 | ||||||||||||
Deduct: | ||||||||||||||||||||
Restructuring and acquisition related expenses(1) | 3,594 | 2,206 | 12,816 | 7,391 | ||||||||||||||||
Change in fair value of contingent consideration liabilities (2) | 12 | 712 | (2,000 | ) | 1,765 | |||||||||||||||
Add: | ||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | (721 | ) | — | (1,199 | ) | — | ||||||||||||||
EBITDA | 187,227 | 146,402 | 596,087 | 458,201 | ||||||||||||||||
Depreciation and amortization | 31,754 | 22,157 | 90,647 | 61,868 | ||||||||||||||||
Interest expense, net | 16,394 | 15,200 | 48,140 | 36,287 | ||||||||||||||||
Loss on debt extinguishment | — | — | 324 | 2,795 | ||||||||||||||||
Provision for income taxes | 47,564 | 35,600 | 155,926 | 123,492 | ||||||||||||||||
Net income | $ | 91,515 | $ | 73,445 | $ | 301,050 | $ | 233,759 | ||||||||||||
(1) See Note 9, "Restructuring and Acquisition Related Expenses," for further information. | ||||||||||||||||||||
(2) See Note 6, "Fair Value Measurements," for further information on our contingent consideration liabilities. | ||||||||||||||||||||
The following table presents capital expenditures, which includes additions to property and equipment, by reportable segment (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Capital Expenditures | ||||||||||||||||||||
North America | $ | 20,986 | $ | 14,960 | $ | 61,262 | $ | 48,662 | ||||||||||||
Europe | 8,652 | 6,015 | 32,927 | 12,464 | ||||||||||||||||
Specialty | 3,222 | — | 6,002 | — | ||||||||||||||||
$ | 32,860 | $ | 20,975 | $ | 100,191 | $ | 61,126 | |||||||||||||
The following table presents assets by reportable segment (in thousands): | ||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Receivables, net | ||||||||||||||||||||
North America | $ | 318,575 | $ | 277,395 | ||||||||||||||||
Europe | 235,791 | 180,699 | ||||||||||||||||||
Specialty | 55,068 | — | ||||||||||||||||||
Total receivables, net | 609,434 | 458,094 | ||||||||||||||||||
Inventory | ||||||||||||||||||||
North America | 787,884 | 748,167 | ||||||||||||||||||
Europe | 389,941 | 328,785 | ||||||||||||||||||
Specialty | 163,500 | — | ||||||||||||||||||
Total inventory | 1,341,325 | 1,076,952 | ||||||||||||||||||
Property and Equipment, net | ||||||||||||||||||||
North America | 449,824 | 447,528 | ||||||||||||||||||
Europe | 123,211 | 99,123 | ||||||||||||||||||
Specialty | 39,257 | — | ||||||||||||||||||
Total property and equipment, net | 612,292 | 546,651 | ||||||||||||||||||
Other unallocated assets | 2,971,527 | 2,437,077 | ||||||||||||||||||
Total assets | $ | 5,534,578 | $ | 4,518,774 | ||||||||||||||||
We report net receivables, inventories, and net property and equipment 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, prepaid and other current and noncurrent assets, goodwill, intangibles and income taxes. | ||||||||||||||||||||
The majority of our operations are conducted in the U.S. Our European operations are located in the U.K., the Netherlands, Belgium, and France. Our operations in other countries include recycled and aftermarket operations in Canada, engine remanufacturing and bumper refurbishing operations in Mexico, an aftermarket parts freight consolidation warehouse in Taiwan, and other alternative parts operations in Guatemala. 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 | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenue | ||||||||||||||||||||
United States | $ | 1,126,468 | $ | 868,052 | $ | 3,369,636 | $ | 2,672,545 | ||||||||||||
United Kingdom | 349,012 | 266,384 | 1,003,889 | 708,089 | ||||||||||||||||
Other countries | 245,544 | 163,658 | 682,408 | 365,205 | ||||||||||||||||
$ | 1,721,024 | $ | 1,298,094 | $ | 5,055,933 | $ | 3,745,839 | |||||||||||||
The following table sets forth our tangible long-lived assets by geographic area (in thousands): | ||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Long-lived Assets | ||||||||||||||||||||
United States | $ | 456,556 | $ | 418,869 | ||||||||||||||||
United Kingdom | 92,365 | 77,827 | ||||||||||||||||||
Other countries | 63,371 | 49,955 | ||||||||||||||||||
$ | 612,292 | $ | 546,651 | |||||||||||||||||
The following table sets forth our revenue by product category (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Aftermarket, other new and refurbished products | $ | 1,171,706 | $ | 793,925 | $ | 3,445,376 | $ | 2,199,009 | ||||||||||||
Recycled, remanufactured and related products and services | 371,632 | 349,411 | 1,108,376 | 1,060,681 | ||||||||||||||||
Other | 177,686 | 154,758 | 502,181 | 486,149 | ||||||||||||||||
$ | 1,721,024 | $ | 1,298,094 | $ | 5,055,933 | $ | 3,745,839 | |||||||||||||
Our North American reportable segment generates revenue from all of our product categories, while our European and Specialty segments generate revenue primarily from the sale of aftermarket products. Revenue from other sources includes scrap sales, bulk sales to mechanical remanufacturers (including cores) and sales of aluminum ingots and sows from our furnace operations. |
Condensed_Consolidating_Financ
Condensed Consolidating Financial Information | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ' | |||||||||||||||||||
Condensed Consolidating Financial Information | ' | |||||||||||||||||||
Condensed Consolidating Financial Information | ||||||||||||||||||||
LKQ Corporation (the "Parent") issued, and certain of its 100% owned subsidiaries (the "Guarantors") have fully and unconditionally guaranteed, jointly and severally, the Parent's Notes 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 Notes; (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 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 Notes; (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 Notes; and (iv) upon legal defeasance, covenant defeasance or satisfaction and discharge of the Indenture, as defined in the 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 the Company's 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 Notes. 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 revenues and expenses. The unaudited condensed consolidating financial statements below have been prepared from the Company's 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 Balance Sheets | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and equivalents | $ | 145,431 | $ | 26,855 | $ | 72,360 | $ | — | $ | 244,646 | ||||||||||
Receivables, net | 77 | 223,767 | 385,590 | — | 609,434 | |||||||||||||||
Intercompany receivables, net | 6,331 | — | 13,829 | (20,160 | ) | — | ||||||||||||||
Inventory | — | 885,665 | 455,660 | — | 1,341,325 | |||||||||||||||
Deferred income taxes | 3,071 | 67,560 | 3,366 | — | 73,997 | |||||||||||||||
Prepaid expenses and other current assets | 10,284 | 33,661 | 32,191 | — | 76,136 | |||||||||||||||
Total Current Assets | 165,194 | 1,237,508 | 962,996 | (20,160 | ) | 2,345,538 | ||||||||||||||
Property and Equipment, net | 534 | 457,975 | 153,783 | — | 612,292 | |||||||||||||||
Intangible Assets: | ||||||||||||||||||||
Goodwill | — | 1,518,384 | 738,769 | — | 2,257,153 | |||||||||||||||
Other intangibles, net | — | 126,522 | 94,527 | — | 221,049 | |||||||||||||||
Investment in Subsidiaries | 2,958,048 | 285,996 | — | (3,244,044 | ) | — | ||||||||||||||
Intercompany Notes Receivable | 619,070 | 32,207 | — | (651,277 | ) | — | ||||||||||||||
Other Assets | 50,433 | 27,235 | 25,963 | (5,085 | ) | 98,546 | ||||||||||||||
Total Assets | $ | 3,793,279 | $ | 3,685,827 | $ | 1,976,038 | $ | (3,920,566 | ) | $ | 5,534,578 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 501 | $ | 180,877 | $ | 222,209 | $ | — | $ | 403,587 | ||||||||||
Intercompany payables, net | — | 13,829 | 6,331 | (20,160 | ) | — | ||||||||||||||
Accrued expenses: | ||||||||||||||||||||
Accrued payroll-related liabilities | 7,054 | 54,794 | 26,234 | — | 88,082 | |||||||||||||||
Sales taxes payable | — | 6,545 | 38,553 | — | 45,098 | |||||||||||||||
Other accrued expenses | 11,434 | 76,371 | 40,033 | — | 127,838 | |||||||||||||||
Contingent consideration liabilities | — | 1,727 | 561 | — | 2,288 | |||||||||||||||
Other current liabilities | 1,127 | 12,816 | 17,644 | — | 31,587 | |||||||||||||||
Current portion of long-term obligations | 55,000 | 4,452 | 13,456 | — | 72,908 | |||||||||||||||
Total Current Liabilities | 75,116 | 351,411 | 365,021 | (20,160 | ) | 771,388 | ||||||||||||||
Long-Term Obligations, Excluding Current Portion | 1,016,429 | 6,423 | 802,281 | — | 1,825,133 | |||||||||||||||
Intercompany Notes Payable | — | 558,691 | 92,586 | (651,277 | ) | — | ||||||||||||||
Deferred Income Taxes | — | 137,785 | 26,570 | (5,085 | ) | 159,270 | ||||||||||||||
Other Noncurrent Liabilities | 34,040 | 63,314 | 13,739 | — | 111,093 | |||||||||||||||
Stockholders’ Equity | 2,667,694 | 2,568,203 | 675,841 | (3,244,044 | ) | 2,667,694 | ||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,793,279 | $ | 3,685,827 | $ | 1,976,038 | $ | (3,920,566 | ) | $ | 5,534,578 | |||||||||
LKQ CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Unaudited Condensed Consolidating Balance Sheets | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and equivalents | $ | 77,926 | $ | 13,693 | $ | 58,869 | $ | — | $ | 150,488 | ||||||||||
Receivables, net | — | 126,926 | 331,168 | — | 458,094 | |||||||||||||||
Intercompany receivables, net | 2,275 | 6,923 | — | (9,198 | ) | — | ||||||||||||||
Inventory | — | 687,164 | 389,788 | — | 1,076,952 | |||||||||||||||
Deferred income taxes | 3,189 | 57,422 | 3,327 | — | 63,938 | |||||||||||||||
Prepaid expenses and other current assets | 7,924 | 24,190 | 18,231 | — | 50,345 | |||||||||||||||
Total Current Assets | 91,314 | 916,318 | 801,383 | (9,198 | ) | 1,799,817 | ||||||||||||||
Property and Equipment, net | 668 | 419,617 | 126,366 | — | 546,651 | |||||||||||||||
Intangible Assets: | ||||||||||||||||||||
Goodwill | — | 1,248,746 | 688,698 | — | 1,937,444 | |||||||||||||||
Other intangibles, net | — | 56,069 | 97,670 | — | 153,739 | |||||||||||||||
Investment in Subsidiaries | 2,364,586 | 264,815 | — | (2,629,401 | ) | — | ||||||||||||||
Intercompany Notes Receivable | 959,185 | 118,740 | — | (1,077,925 | ) | — | ||||||||||||||
Other Assets | 49,218 | 20,133 | 17,241 | (5,469 | ) | 81,123 | ||||||||||||||
Total Assets | $ | 3,464,971 | $ | 3,044,438 | $ | 1,731,358 | $ | (3,721,993 | ) | $ | 4,518,774 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 314 | $ | 147,708 | $ | 201,047 | $ | — | $ | 349,069 | ||||||||||
Intercompany payables, net | — | — | 9,198 | (9,198 | ) | — | ||||||||||||||
Accrued expenses: | ||||||||||||||||||||
Accrued payroll-related liabilities | 5,236 | 32,850 | 20,609 | — | 58,695 | |||||||||||||||
Sales taxes payable | — | 5,694 | 25,007 | — | 30,701 | |||||||||||||||
Other accrued expenses | 26,714 | 51,183 | 31,476 | — | 109,373 | |||||||||||||||
Contingent consideration liabilities | — | 1,923 | 50,542 | — | 52,465 | |||||||||||||||
Other current liabilities | 2,803 | 13,039 | 20,273 | — | 36,115 | |||||||||||||||
Current portion of long-term obligations | 24,421 | 3,030 | 14,084 | — | 41,535 | |||||||||||||||
Total Current Liabilities | 59,488 | 255,427 | 372,236 | (9,198 | ) | 677,953 | ||||||||||||||
Long-Term Obligations, Excluding Current Portion | 1,016,249 | 6,554 | 241,443 | — | 1,264,246 | |||||||||||||||
Intercompany Notes Payable | — | 611,274 | 466,651 | (1,077,925 | ) | — | ||||||||||||||
Deferred Income Taxes | — | 110,110 | 29,181 | (5,469 | ) | 133,822 | ||||||||||||||
Other Noncurrent Liabilities | 38,489 | 46,417 | 7,102 | — | 92,008 | |||||||||||||||
Stockholders’ Equity | 2,350,745 | 2,014,656 | 614,745 | (2,629,401 | ) | 2,350,745 | ||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,464,971 | $ | 3,044,438 | $ | 1,731,358 | $ | (3,721,993 | ) | $ | 4,518,774 | |||||||||
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 (income) 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 Three Months Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Revenue | $ | — | $ | 876,862 | $ | 450,505 | $ | (29,273 | ) | $ | 1,298,094 | |||||||||
Cost of goods sold | — | 522,176 | 287,284 | (29,273 | ) | 780,187 | ||||||||||||||
Gross margin | — | 354,686 | 163,221 | — | 517,907 | |||||||||||||||
Facility and warehouse expenses | — | 79,565 | 28,784 | — | 108,349 | |||||||||||||||
Distribution expenses | — | 73,752 | 35,841 | — | 109,593 | |||||||||||||||
Selling, general and administrative expenses | 6,813 | 93,549 | 53,184 | — | 153,546 | |||||||||||||||
Restructuring and acquisition related expenses | — | 411 | 1,795 | — | 2,206 | |||||||||||||||
Depreciation and amortization | 65 | 14,014 | 6,739 | — | 20,818 | |||||||||||||||
Operating (loss) income | (6,878 | ) | 93,395 | 36,878 | — | 123,395 | ||||||||||||||
Other expense (income): | ||||||||||||||||||||
Interest expense, net | 13,335 | 81 | 1,784 | — | 15,200 | |||||||||||||||
Intercompany interest (income) expense, net | (13,028 | ) | 5,593 | 7,435 | — | — | ||||||||||||||
Change in fair value of contingent consideration liabilities | — | (72 | ) | 784 | — | 712 | ||||||||||||||
Other expense (income), net | 45 | (912 | ) | (695 | ) | — | (1,562 | ) | ||||||||||||
Total other expense, net | 352 | 4,690 | 9,308 | — | 14,350 | |||||||||||||||
(Loss) income before (benefit) provision for income taxes | (7,230 | ) | 88,705 | 27,570 | — | 109,045 | ||||||||||||||
(Benefit) provision for income taxes | (2,867 | ) | 33,973 | 4,494 | — | 35,600 | ||||||||||||||
Equity in earnings of subsidiaries | 77,808 | 5,656 | — | (83,464 | ) | — | ||||||||||||||
Net income | $ | 73,445 | $ | 60,388 | $ | 23,076 | $ | (83,464 | ) | $ | 73,445 | |||||||||
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 Income | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Revenue | $ | — | $ | 2,698,008 | $ | 1,133,369 | $ | (85,538 | ) | $ | 3,745,839 | |||||||||
Cost of goods sold | — | 1,593,764 | 707,884 | (85,538 | ) | 2,216,110 | ||||||||||||||
Gross margin | — | 1,104,244 | 425,485 | — | 1,529,729 | |||||||||||||||
Facility and warehouse expenses | — | 240,389 | 71,091 | — | 311,480 | |||||||||||||||
Distribution expenses | — | 224,266 | 95,767 | — | 320,033 | |||||||||||||||
Selling, general and administrative expenses | 20,130 | 282,364 | 134,120 | — | 436,614 | |||||||||||||||
Restructuring and acquisition related expenses | — | 750 | 6,641 | — | 7,391 | |||||||||||||||
Depreciation and amortization | 187 | 41,568 | 16,095 | — | 57,850 | |||||||||||||||
Operating (loss) income | (20,317 | ) | 314,907 | 101,771 | — | 396,361 | ||||||||||||||
Other expense (income): | ||||||||||||||||||||
Interest expense, net | 29,589 | 621 | 6,077 | — | 36,287 | |||||||||||||||
Intercompany interest (income) expense, net | (34,318 | ) | 16,901 | 17,417 | — | — | ||||||||||||||
Loss on debt extinguishment | 2,795 | — | — | — | 2,795 | |||||||||||||||
Change in fair value of contingent consideration liabilities | — | (936 | ) | 2,701 | — | 1,765 | ||||||||||||||
Other expense (income), net | 172 | (2,380 | ) | 471 | — | (1,737 | ) | |||||||||||||
Total other (income) expense, net | (1,762 | ) | 14,206 | 26,666 | — | 39,110 | ||||||||||||||
(Loss) income before (benefit) provision for income taxes | (18,555 | ) | 300,701 | 75,105 | — | 357,251 | ||||||||||||||
(Benefit) provision for income taxes | (7,199 | ) | 115,625 | 15,066 | — | 123,492 | ||||||||||||||
Equity in earnings of subsidiaries | 245,115 | 15,496 | — | (260,611 | ) | — | ||||||||||||||
Net income | $ | 233,759 | $ | 200,572 | $ | 60,039 | $ | (260,611 | ) | $ | 233,759 | |||||||||
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 Three Months Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Net income | $ | 73,445 | $ | 60,388 | $ | 23,076 | $ | (83,464 | ) | $ | 73,445 | |||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||
Foreign currency translation | 28,514 | 13,130 | 28,104 | (41,234 | ) | 28,514 | ||||||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 625 | — | 127 | (127 | ) | 625 | ||||||||||||||
Total other comprehensive income | 29,139 | 13,130 | 28,231 | (41,361 | ) | 29,139 | ||||||||||||||
Total comprehensive income | $ | 102,584 | $ | 73,518 | $ | 51,307 | $ | (124,825 | ) | $ | 102,584 | |||||||||
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 Comprehensive Income | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Net income | $ | 233,759 | $ | 200,572 | $ | 60,039 | $ | (260,611 | ) | $ | 233,759 | |||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||
Foreign currency translation | 6,330 | 3,386 | 7,107 | (10,493 | ) | 6,330 | ||||||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 3,986 | — | 903 | (903 | ) | 3,986 | ||||||||||||||
Total other comprehensive income | 10,316 | 3,386 | 8,010 | (11,396 | ) | 10,316 | ||||||||||||||
Total comprehensive income | $ | 244,075 | $ | 203,958 | $ | 68,049 | $ | (272,007 | ) | $ | 244,075 | |||||||||
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 | ) | |||||||||||
Proceeds from sales of property and equipment | — | 1,218 | 1,956 | — | 3,174 | |||||||||||||||
Investments in unconsolidated subsidiaries | — | (600 | ) | (1,640 | ) | — | (2,240 | ) | ||||||||||||
Investment and intercompany note activity with subsidiaries | (197,714 | ) | (607 | ) | — | 198,321 | — | |||||||||||||
Acquisitions, net of cash acquired | — | (520,721 | ) | (129,893 | ) | — | (650,614 | ) | ||||||||||||
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 facility | 693,000 | — | 606,821 | — | 1,299,821 | |||||||||||||||
Repayments under revolving credit facility | (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 | ||||||||||
LKQ CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Unaudited Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 101,136 | $ | 195,524 | $ | 116,212 | $ | (71,943 | ) | $ | 340,929 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Purchases of property and equipment | (1 | ) | (40,824 | ) | (20,301 | ) | — | (61,126 | ) | |||||||||||
Proceeds from sales of property and equipment | — | 1,032 | 427 | — | 1,459 | |||||||||||||||
Investment in unconsolidated subsidiary | — | — | (9,136 | ) | — | (9,136 | ) | |||||||||||||
Investment and intercompany note activity with subsidiaries | (418,205 | ) | (84,893 | ) | — | 503,098 | — | |||||||||||||
Acquisitions, net of cash acquired | — | (21,570 | ) | (374,404 | ) | — | (395,974 | ) | ||||||||||||
Net cash used in investing activities | (418,206 | ) | (146,255 | ) | (403,414 | ) | 503,098 | (464,777 | ) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
Proceeds from exercise of stock options | 13,647 | — | — | — | 13,647 | |||||||||||||||
Excess tax benefit from stock-based payments | 15,998 | — | — | — | 15,998 | |||||||||||||||
Proceeds from issuance of senior notes | 600,000 | — | — | — | 600,000 | |||||||||||||||
Borrowings under revolving credit facility | 315,000 | — | 84,758 | — | 399,758 | |||||||||||||||
Repayments under revolving credit facility | (616,000 | ) | — | (129,313 | ) | — | (745,313 | ) | ||||||||||||
Borrowings under term loans | 35,000 | — | — | — | 35,000 | |||||||||||||||
Repayments under term loans | (11,250 | ) | — | — | — | (11,250 | ) | |||||||||||||
Borrowings under receivables securitization facility | — | — | 41,500 | — | 41,500 | |||||||||||||||
Repayments under receivables securitization facility | — | — | (111,500 | ) | — | (111,500 | ) | |||||||||||||
Repayments of other long-term debt | (925 | ) | (7,983 | ) | (10,610 | ) | — | (19,518 | ) | |||||||||||
Payments of other obligations | — | (473 | ) | (31,618 | ) | — | (32,091 | ) | ||||||||||||
Other financing activities, net | (16,830 | ) | — | (82 | ) | — | (16,912 | ) | ||||||||||||
Investment and intercompany note activity with parent | — | 25,095 | 478,003 | (503,098 | ) | — | ||||||||||||||
Dividends | — | (71,943 | ) | — | 71,943 | — | ||||||||||||||
Net cash provided by (used in) financing activities | 334,640 | (55,304 | ) | 321,138 | (431,155 | ) | 169,319 | |||||||||||||
Effect of exchange rate changes on cash and equivalents | — | — | 2,096 | — | 2,096 | |||||||||||||||
Net increase (decrease) in cash and equivalents | 17,570 | (6,035 | ) | 36,032 | — | 47,567 | ||||||||||||||
Cash and equivalents, beginning of period | 18,396 | 18,253 | 23,121 | — | 59,770 | |||||||||||||||
Cash and equivalents, end of period | $ | 35,966 | $ | 12,218 | $ | 59,153 | $ | — | $ | 107,337 | ||||||||||
Financial_Statement_Informatio1
Financial Statement Information (Policies) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||
Revenue Recognition | ' | |||||||||||||||||||||||
Revenue Recognition | ||||||||||||||||||||||||
The majority of our revenue is derived from the sale of vehicle parts. Revenue is recognized when the products are shipped to, delivered to or picked up by customers and title has transferred, subject to an allowance for estimated returns, discounts and allowances that we estimate based upon historical information. We recorded a reserve for estimated returns, discounts and allowances of approximately $30.0 million and $26.6 million at September 30, 2014 and December 31, 2013, respectively. We present taxes assessed by governmental authorities collected from customers on a net basis. Therefore, the taxes are excluded from revenue on our Unaudited Condensed Consolidated Statements of Income and are shown as a current liability on our Unaudited Condensed Consolidated Balance Sheets until remitted. We recognize revenue from the sale of scrap, cores and other metals when title has transferred, which typically occurs upon delivery to the customer. | ||||||||||||||||||||||||
Receivables and Allowance for Doubtful Accounts | ' | |||||||||||||||||||||||
Allowance for Doubtful Accounts | ||||||||||||||||||||||||
We recorded a reserve for uncollectible accounts of approximately $19.1 million and $14.4 million at September 30, 2014 and December 31, 2013, respectively. | ||||||||||||||||||||||||
Inventory | ' | |||||||||||||||||||||||
Inventory | ||||||||||||||||||||||||
Inventory consists of the following (in thousands): | ||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Aftermarket and refurbished products | $ | 944,451 | $ | 706,600 | ||||||||||||||||||||
Salvage and remanufactured products | 396,874 | 370,352 | ||||||||||||||||||||||
$ | 1,341,325 | $ | 1,076,952 | |||||||||||||||||||||
Our acquisitions completed during the first nine months of 2014 and adjustments to preliminary valuations of inventory for certain of our 2013 acquisitions contributed $217.3 million of the increase in our aftermarket and refurbished products inventory and $13.0 million of the increase in our salvage and remanufactured products inventory during the nine months ended September 30, 2014. See Note 8, "Business Combinations," for further information on our acquisitions. | ||||||||||||||||||||||||
Intangible Assets | ' | |||||||||||||||||||||||
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 relationships, software and other technology related assets and covenants not to compete. | ||||||||||||||||||||||||
The changes in the carrying amount of goodwill by reportable segment during the nine months ended September 30, 2014 are as follows (in thousands): | ||||||||||||||||||||||||
North America | Europe | Specialty | Total | |||||||||||||||||||||
Balance as of January 1, 2014 | $ | 1,358,937 | $ | 578,507 | $ | — | $ | 1,937,444 | ||||||||||||||||
Business acquisitions and adjustments to previously recorded goodwill | 44,981 | 73,959 | 233,998 | 352,938 | ||||||||||||||||||||
Exchange rate effects | (6,332 | ) | (26,898 | ) | 1 | (33,229 | ) | |||||||||||||||||
Balance as of September 30, 2014 | $ | 1,397,586 | $ | 625,568 | $ | 233,999 | $ | 2,257,153 | ||||||||||||||||
The components of other intangibles are as follows (in thousands): | ||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Trade names and trademarks | $ | 165,262 | $ | (33,643 | ) | $ | 131,619 | $ | 143,577 | $ | (27,950 | ) | $ | 115,627 | ||||||||||
Customer relationships | 71,345 | (21,906 | ) | 49,439 | 29,583 | (10,770 | ) | 18,813 | ||||||||||||||||
Software and other technology related assets | 45,513 | (8,657 | ) | 36,856 | 20,384 | (2,718 | ) | 17,666 | ||||||||||||||||
Covenants not to compete | 6,199 | (3,064 | ) | 3,135 | 3,979 | (2,346 | ) | 1,633 | ||||||||||||||||
$ | 288,319 | $ | (67,270 | ) | $ | 221,049 | $ | 197,523 | $ | (43,784 | ) | $ | 153,739 | |||||||||||
During the nine months ended September 30, 2014, we recorded preliminary intangible asset valuations resulting from our 2014 acquisitions and adjustments to certain preliminary intangible asset valuations from our 2013 acquisitions, which included $24.7 million of trade names, $42.8 million of customer relationships, $26.8 million of software and other technology related assets and $2.4 million of covenants not to compete. The trade names, customer relationships, and software and technology related assets recorded in the nine months ended September 30, 2014 included $20.9 million, $23.1 million and $26.8 million, respectively, related to our acquisition of Keystone Specialty, as discussed in Note 8, "Business Combinations." | ||||||||||||||||||||||||
Trade names and trademarks are amortized over a useful life ranging from 10 to 30 years on a straight-line basis. Customer relationships are amortized over the expected period to be benefited (5 to 15 years) on an accelerated basis. Software and other technology related assets are amortized on a straight-line basis over the expected period to be benefited (five to six years). Covenants not to compete are amortized over the lives of the respective agreements, which range from one to five years, on a straight-line basis. Amortization expense for intangibles was $24.4 million and $9.0 million during the nine month periods ended September 30, 2014 and 2013, respectively. Estimated amortization expense for each of the five years in the period ending December 31, 2018 is $32.4 million, $29.4 million, $26.1 million, $23.7 million and $18.7 million, respectively. | ||||||||||||||||||||||||
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 that is supported by certain of the suppliers of those products. We record the estimated warranty costs at the time of sale using historical warranty claim information to project future warranty claims activity. The changes in the warranty reserve during the nine month period ended September 30, 2014 were as follows (in thousands): | ||||||||||||||||||||||||
Balance as of January 1, 2014 | $ | 12,447 | ||||||||||||||||||||||
Warranty expense | 22,890 | |||||||||||||||||||||||
Warranty claims | (20,514 | ) | ||||||||||||||||||||||
Balance as of September 30, 2014 | $ | 14,823 | ||||||||||||||||||||||
Investment in Unconsolidated Subsidiary | ' | |||||||||||||||||||||||
Investments in Unconsolidated Subsidiaries | ||||||||||||||||||||||||
As of September 30, 2014, the carrying value of our investments in unconsolidated subsidiaries was $9.5 million; of this amount, $7.6 million relates to our investment in ACM Parts Pty Ltd ("ACM Parts"). In August 2013, we entered into an agreement with Suncorp Group, a leading general insurance group in Australia and New Zealand, to develop ACM Parts, an alternative vehicle replacement parts business in those countries. We hold a 49% equity interest in the entity and will contribute our experience to help establish automotive parts recycling operations and to facilitate the procurement of aftermarket parts; Suncorp Group holds a 51% equity interest and will supply salvage vehicles to the venture as well as assist in establishing relationships with repair shops as customers. We are accounting for our interest in this subsidiary using the equity method of accounting, as our investment gives us the ability to exercise significant influence, but not control, over the investee. The total of our investment in ACM Parts and other unconsolidated subsidiaries is included within Other Assets on our Unaudited Condensed Consolidated Balance Sheets. Our equity in the net earnings of the investees for the three and nine months ended September 30, 2014 was not material. | ||||||||||||||||||||||||
Depreciation Expense | ' | |||||||||||||||||||||||
Depreciation Expense | ||||||||||||||||||||||||
Included in Cost of Goods Sold on the Unaudited Condensed Consolidated Statements of Income is depreciation expense associated with our refurbishing, remanufacturing, and furnace operations as well as our distribution centers. | ||||||||||||||||||||||||
New Accounting Pronouncements | ' | |||||||||||||||||||||||
Recent Accounting Pronouncements | ||||||||||||||||||||||||
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 which supersedes most current 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. Entities adopting the standard have the option of using either a full retrospective or modified retrospective approach in the application of this guidance. ASU 2014-09 will be effective for the Company during the first quarter of our fiscal year 2017. Early adoption is not permitted. We are still evaluating the impact that ASU 2014-09 will have on our consolidated financial statements and related disclosures. | ||||||||||||||||||||||||
In June 2014, the FASB issued Accounting Standards Update 2014-12, "Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period" ("ASU 2014-12"). This update requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition, and requires the recognition of compensation cost in the period in which it becomes probable that the performance target will be achieved. ASU 2014-12 will be effective for the Company during the first quarter of our fiscal year 2016. Early adoption is permitted. The new standard can be applied either prospectively to all awards granted or modified after the effective date or retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements as an adjustment to opening retained earnings. We do not anticipate the adoption of this guidance will have a material impact on our financial position, results of operations, cash flows, or disclosures. |
Financial_Statement_Informatio2
Financial Statement Information (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Accounting Policies [Abstract] | ' | |||||||||||||||||||||||
Schedule Of Inventory | ' | |||||||||||||||||||||||
Inventory | ||||||||||||||||||||||||
Inventory consists of the following (in thousands): | ||||||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||||
Aftermarket and refurbished products | $ | 944,451 | $ | 706,600 | ||||||||||||||||||||
Salvage and remanufactured products | 396,874 | 370,352 | ||||||||||||||||||||||
$ | 1,341,325 | $ | 1,076,952 | |||||||||||||||||||||
Changes In Carrying Amount Of Goodwill | ' | |||||||||||||||||||||||
The changes in the carrying amount of goodwill by reportable segment during the nine months ended September 30, 2014 are as follows (in thousands): | ||||||||||||||||||||||||
North America | Europe | Specialty | Total | |||||||||||||||||||||
Balance as of January 1, 2014 | $ | 1,358,937 | $ | 578,507 | $ | — | $ | 1,937,444 | ||||||||||||||||
Business acquisitions and adjustments to previously recorded goodwill | 44,981 | 73,959 | 233,998 | 352,938 | ||||||||||||||||||||
Exchange rate effects | (6,332 | ) | (26,898 | ) | 1 | (33,229 | ) | |||||||||||||||||
Balance as of September 30, 2014 | $ | 1,397,586 | $ | 625,568 | $ | 233,999 | $ | 2,257,153 | ||||||||||||||||
Components Of Other Intangibles | ' | |||||||||||||||||||||||
The components of other intangibles are as follows (in thousands): | ||||||||||||||||||||||||
September 30, 2014 | December 31, 2013 | |||||||||||||||||||||||
Gross | Accumulated | Net | Gross | Accumulated | Net | |||||||||||||||||||
Carrying | Amortization | Carrying | Amortization | |||||||||||||||||||||
Amount | Amount | |||||||||||||||||||||||
Trade names and trademarks | $ | 165,262 | $ | (33,643 | ) | $ | 131,619 | $ | 143,577 | $ | (27,950 | ) | $ | 115,627 | ||||||||||
Customer relationships | 71,345 | (21,906 | ) | 49,439 | 29,583 | (10,770 | ) | 18,813 | ||||||||||||||||
Software and other technology related assets | 45,513 | (8,657 | ) | 36,856 | 20,384 | (2,718 | ) | 17,666 | ||||||||||||||||
Covenants not to compete | 6,199 | (3,064 | ) | 3,135 | 3,979 | (2,346 | ) | 1,633 | ||||||||||||||||
$ | 288,319 | $ | (67,270 | ) | $ | 221,049 | $ | 197,523 | $ | (43,784 | ) | $ | 153,739 | |||||||||||
Changes In Warranty Reserve | ' | |||||||||||||||||||||||
The changes in the warranty reserve during the nine month period ended September 30, 2014 were as follows (in thousands): | ||||||||||||||||||||||||
Balance as of January 1, 2014 | $ | 12,447 | ||||||||||||||||||||||
Warranty expense | 22,890 | |||||||||||||||||||||||
Warranty claims | (20,514 | ) | ||||||||||||||||||||||
Balance as of September 30, 2014 | $ | 14,823 | ||||||||||||||||||||||
Equity_Incentive_Plans_Tables
Equity Incentive Plans (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ' | |||||||||||||||||||||||
Summary Of Transactions In Stock-Based Compensation Plans | ' | |||||||||||||||||||||||
A summary of transactions in our stock-based compensation plans is as follows: | ||||||||||||||||||||||||
Shares | RSUs | Stock Options | Restricted Stock | |||||||||||||||||||||
Available For | ||||||||||||||||||||||||
Grant | Number | Weighted | Number | Weighted | Number | Weighted | ||||||||||||||||||
Outstanding | Average | Outstanding | Average | Outstanding | Average | |||||||||||||||||||
Grant Date | Exercise | Grant Date | ||||||||||||||||||||||
Fair Value | Price | Fair Value | ||||||||||||||||||||||
Balance, January 1, 2014 | 13,965,440 | 2,558,213 | $ | 16.63 | 6,832,331 | $ | 7.04 | 20,000 | $ | 9.3 | ||||||||||||||
Granted | (791,652 | ) | 664,897 | 31.82 | 126,755 | 32.31 | — | — | ||||||||||||||||
Exercised | — | — | — | (1,250,620 | ) | 5.21 | — | — | ||||||||||||||||
Vested | — | (975,462 | ) | 17.01 | — | — | (10,000 | ) | 9.3 | |||||||||||||||
Canceled | 142,887 | (89,138 | ) | 20.49 | (53,749 | ) | 13.42 | — | — | |||||||||||||||
Balance, September 30, 2014 | 13,316,675 | 2,158,510 | $ | 20.98 | 5,654,717 | $ | 7.95 | 10,000 | $ | 9.3 | ||||||||||||||
Schedule Of Pre-Tax Stock-Based Compensation Expense | ' | |||||||||||||||||||||||
The components of pre-tax stock-based compensation expense are as follows (in thousands): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
RSUs | $ | 4,434 | $ | 4,559 | $ | 14,625 | $ | 12,674 | ||||||||||||||||
Stock options | 703 | 1,124 | 2,203 | 3,457 | ||||||||||||||||||||
Restricted stock | 47 | 47 | 139 | 161 | ||||||||||||||||||||
Total stock-based compensation expense | $ | 5,184 | $ | 5,730 | $ | 16,967 | $ | 16,292 | ||||||||||||||||
Schedule Of Stock-Based Compensation Expense Included In Statements Of Income | ' | |||||||||||||||||||||||
The following table sets forth the classification of total stock-based compensation expense included in our Unaudited Condensed Consolidated Statements of Income (in thousands): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Cost of goods sold | $ | 105 | $ | 98 | $ | 308 | $ | 294 | ||||||||||||||||
Facility and warehouse expenses | 527 | 687 | 1,672 | 2,058 | ||||||||||||||||||||
Selling, general and administrative expenses | 4,552 | 4,945 | 14,987 | 13,940 | ||||||||||||||||||||
5,184 | 5,730 | 16,967 | 16,292 | |||||||||||||||||||||
Income tax benefit | (1,996 | ) | (2,235 | ) | (6,532 | ) | (6,354 | ) | ||||||||||||||||
Total stock-based compensation expense, net of tax | $ | 3,188 | $ | 3,495 | $ | 10,435 | $ | 9,938 | ||||||||||||||||
Schedule Of Stock-Based Compensation Expense Expected To Be Recognized | ' | |||||||||||||||||||||||
As of September 30, 2014, unrecognized compensation expense related to unvested RSUs and stock options is expected to be recognized as follows (in thousands): | ||||||||||||||||||||||||
RSUs | Stock | Total | ||||||||||||||||||||||
Options | ||||||||||||||||||||||||
Remainder of 2014 | $ | 4,292 | $ | 724 | $ | 5,016 | ||||||||||||||||||
2015 | 13,459 | 396 | 13,855 | |||||||||||||||||||||
2016 | 8,433 | 331 | 8,764 | |||||||||||||||||||||
2017 | 5,049 | 9 | 5,058 | |||||||||||||||||||||
2018 | 2,553 | — | 2,553 | |||||||||||||||||||||
2019 | 110 | — | 110 | |||||||||||||||||||||
Total unrecognized compensation expense | $ | 33,896 | $ | 1,460 | $ | 35,356 | ||||||||||||||||||
LongTerm_Obligations_Tables
Long-Term Obligations (Tables) | 9 Months Ended | |||||||
Sep. 30, 2014 | ||||||||
Debt Disclosure [Abstract] | ' | |||||||
Schedule Of Long-Term Obligations | ' | |||||||
Long-Term Obligations consist of the following (in thousands): | ||||||||
September 30, | December 31, | |||||||
2014 | 2013 | |||||||
Senior secured credit agreement: | ||||||||
Term loans payable | $ | 438,750 | $ | 438,750 | ||||
Revolving credit facility | 693,299 | 233,804 | ||||||
Senior notes | 600,000 | 600,000 | ||||||
Receivables securitization facility | 80,000 | — | ||||||
Notes payable through October 2018 at weighted average interest rates of 1.1% | 53,994 | 15,730 | ||||||
Other long-term debt at weighted average interest rates of 2.9% and 3.5%, respectively | 31,998 | 17,497 | ||||||
1,898,041 | 1,305,781 | |||||||
Less current maturities | (72,908 | ) | (41,535 | ) | ||||
$ | 1,825,133 | $ | 1,264,246 | |||||
Derivative_Instruments_and_Hed1
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended | ||||||||||||||||||||
Sep. 30, 2014 | |||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ' | ||||||||||||||||||||
Terms Of Interest Rate Swap Agreements | ' | ||||||||||||||||||||
The following table summarizes the notional amounts and fair values of our designated cash flow hedges as of September 30, 2014 and December 31, 2013 (in thousands): | |||||||||||||||||||||
Notional Amount | Fair Value at September 30, 2014 (USD) | Fair Value at December 31, 2013 (USD) | |||||||||||||||||||
30-Sep-14 | 31-Dec-13 | Other Noncurrent Liabilities | Other Accrued Expenses | Other Noncurrent Liabilities | |||||||||||||||||
Interest rate swap agreements | |||||||||||||||||||||
USD denominated | $ | 420,000 | $ | 420,000 | $ | 5,128 | $ | — | $ | 8,099 | |||||||||||
GBP denominated | £ | 50,000 | £ | 50,000 | 396 | — | 345 | ||||||||||||||
CAD denominated | C$ | 25,000 | C$ | 25,000 | 32 | — | 26 | ||||||||||||||
Foreign currency forward contracts | |||||||||||||||||||||
EUR denominated | € | — | € | 149,976 | — | 11,632 | — | ||||||||||||||
GBP denominated | £ | — | £ | 70,000 | — | 10,186 | — | ||||||||||||||
Total cash flow hedges | $ | 5,556 | $ | 21,818 | $ | 8,470 | |||||||||||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
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 September 30, 2014 and December 31, 2013 (in thousands): | ||||||||||||||||
Balance as of September 30, 2014 | Fair Value Measurements as of September 30, 2014 | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Cash surrender value of life insurance policies | $ | 26,438 | $ | — | $ | 26,438 | $ | — | ||||||||
Total Assets | $ | 26,438 | $ | — | $ | 26,438 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration liabilities | $ | 7,301 | $ | — | $ | — | $ | 7,301 | ||||||||
Deferred compensation liabilities | 25,834 | — | 25,834 | — | ||||||||||||
Interest rate swaps | 5,556 | — | 5,556 | — | ||||||||||||
Total Liabilities | $ | 38,691 | $ | — | $ | 31,390 | $ | 7,301 | ||||||||
Balance as of December 31, 2013 | Fair Value Measurements as of December 31, 2013 | |||||||||||||||
Level 1 | Level 2 | Level 3 | ||||||||||||||
Assets: | ||||||||||||||||
Cash surrender value of life insurance policies | $ | 25,745 | $ | — | $ | 25,745 | $ | — | ||||||||
Total Assets | $ | 25,745 | $ | — | $ | 25,745 | $ | — | ||||||||
Liabilities: | ||||||||||||||||
Contingent consideration liabilities | $ | 55,653 | $ | — | $ | — | $ | 55,653 | ||||||||
Deferred compensation liabilities | 25,232 | — | 25,232 | — | ||||||||||||
Foreign currency forward contracts | 21,818 | — | 21,818 | — | ||||||||||||
Interest rate swaps | 8,470 | — | 8,470 | — | ||||||||||||
Total Liabilities | $ | 111,173 | $ | — | $ | 55,520 | $ | 55,653 | ||||||||
Significant Unobservable Inputs Used In Fair Value Measurements | ' | |||||||||||||||
The significant unobservable inputs used in the fair value measurements of our Level 3 contingent consideration liabilities were as follows: | ||||||||||||||||
September 30, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Unobservable Input | (Weighted Average) | |||||||||||||||
Probability of achieving payout targets | 78.7 | % | 70.6 | % | ||||||||||||
Discount rate | 7.5 | % | 6.5 | % | ||||||||||||
Changes In Fair Value Of Contingent Consideration Obligations | ' | |||||||||||||||
Changes in the fair value of our contingent consideration obligations are as follows (in thousands): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Beginning Balance | $ | 8,762 | $ | 49,473 | $ | 55,653 | $ | 90,009 | ||||||||
Contingent consideration liabilities recorded for business acquisitions | (1,203 | ) | 1,204 | 5,854 | 3,854 | |||||||||||
Payments | — | — | (52,305 | ) | (38,349 | ) | ||||||||||
Increase (decrease) in fair value included in earnings | 12 | 712 | (2,000 | ) | 1,765 | |||||||||||
Exchange rate effects | (270 | ) | 3,096 | 99 | (2,794 | ) | ||||||||||
Ending Balance | $ | 7,301 | $ | 54,485 | $ | 7,301 | $ | 54,485 | ||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 9 Months Ended | |||
Sep. 30, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ' | |||
Future Minimum Lease Commitments | ' | |||
The future minimum lease commitments under these leases at September 30, 2014 are as follows (in thousands): | ||||
Three months ending December 31, 2014 | $ | 35,353 | ||
Years ending December 31: | ||||
2015 | 134,572 | |||
2016 | 114,205 | |||
2017 | 95,568 | |||
2018 | 78,838 | |||
2019 | 63,638 | |||
Thereafter | 251,142 | |||
Future Minimum Lease Payments | $ | 773,316 | ||
Business_Combinations_Tables
Business Combinations (Tables) | 9 Months Ended | |||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||
Business Combinations [Abstract] | ' | |||||||||||||||||||||||
Purchase Price Allocations For Acquisitions | ' | |||||||||||||||||||||||
The preliminary purchase price allocations for the acquisitions completed during the nine months ended September 30, 2014 and the year ended December 31, 2013 are as follows (in thousands): | ||||||||||||||||||||||||
Nine Months Ended | Year Ended | |||||||||||||||||||||||
30-Sep-14 | 31-Dec-13 | |||||||||||||||||||||||
Keystone Specialty | Other Acquisitions | Total | Sator | Other Acquisitions | Total | |||||||||||||||||||
Receivables | $ | 48,473 | $ | 57,191 | $ | 105,664 | $ | 61,639 | $ | 38,685 | $ | 100,324 | ||||||||||||
Receivable reserves | (4,403 | ) | (2,817 | ) | (7,220 | ) | (8,563 | ) | (3,246 | ) | (11,809 | ) | ||||||||||||
Inventory | 151,013 | 79,260 | 230,273 | 71,784 | 26,455 | 98,239 | ||||||||||||||||||
Income taxes receivable | 13,972 | — | 13,972 | — | — | — | ||||||||||||||||||
Prepaid expenses and other current assets | 8,339 | 3,266 | 11,605 | 7,184 | 1,933 | 9,117 | ||||||||||||||||||
Property and equipment | 38,080 | 16,389 | 54,469 | 19,484 | 14,015 | 33,499 | ||||||||||||||||||
Goodwill | 233,998 | 118,940 | 352,938 | 142,721 | 92,726 | 235,447 | ||||||||||||||||||
Other intangibles | 70,830 | 25,897 | 96,727 | 45,293 | 12,353 | 57,646 | ||||||||||||||||||
Other assets | 7,805 | 5,623 | 13,428 | 2,049 | 1,251 | 3,300 | ||||||||||||||||||
Deferred income taxes | (17,418 | ) | 429 | (16,989 | ) | (14,100 | ) | (564 | ) | (14,664 | ) | |||||||||||||
Current liabilities assumed | (65,439 | ) | (34,880 | ) | (100,319 | ) | (49,593 | ) | (36,799 | ) | (86,392 | ) | ||||||||||||
Debt assumed | — | (26,425 | ) | (26,425 | ) | — | (664 | ) | (664 | ) | ||||||||||||||
Other noncurrent liabilities assumed | (14,147 | ) | (9,282 | ) | (23,429 | ) | (5,074 | ) | — | (5,074 | ) | |||||||||||||
Contingent consideration liabilities | — | (5,854 | ) | (5,854 | ) | — | (3,854 | ) | (3,854 | ) | ||||||||||||||
Other purchase price obligations | (12,553 | ) | (313 | ) | (12,866 | ) | — | (214 | ) | (214 | ) | |||||||||||||
Notes issued | (31,500 | ) | (11,842 | ) | (43,342 | ) | — | (7,482 | ) | (7,482 | ) | |||||||||||||
Settlement of pre-existing balances | — | (4,922 | ) | (4,922 | ) | — | — | — | ||||||||||||||||
Cash used in acquisitions, net of cash acquired | $ | 427,050 | $ | 210,660 | $ | 637,710 | $ | 272,824 | $ | 134,595 | $ | 407,419 | ||||||||||||
Pro Forma Effect Of Businesses Acquired | ' | |||||||||||||||||||||||
The following pro forma summary presents the effect of the businesses acquired during the nine months ended September 30, 2014 as though they had been acquired as of January 1, 2013 and the businesses acquired during the year ended December 31, 2013 as though they had been acquired as of January 1, 2012. The pro forma adjustments are based upon unaudited financial information of the acquired entities (in thousands, except per share data): | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||||||
Revenue, as reported | $ | 1,721,024 | $ | 1,298,094 | $ | 5,055,933 | $ | 3,745,839 | ||||||||||||||||
Revenue of purchased businesses for the period prior to acquisition: | ||||||||||||||||||||||||
Keystone Specialty | — | 177,324 | 3,443 | 540,826 | ||||||||||||||||||||
Sator | — | — | — | 126,309 | ||||||||||||||||||||
Other acquisitions | 4,815 | 101,971 | 116,326 | 371,312 | ||||||||||||||||||||
Pro forma revenue | $ | 1,725,839 | $ | 1,577,389 | $ | 5,175,702 | $ | 4,784,286 | ||||||||||||||||
Net income, as reported | $ | 91,515 | $ | 73,445 | $ | 301,050 | $ | 233,759 | ||||||||||||||||
Net income of purchased businesses for the period prior to acquisition, including pro forma purchase accounting adjustments: | ||||||||||||||||||||||||
Keystone Specialty | 180 | 7,142 | 514 | 24,769 | ||||||||||||||||||||
Sator | — | — | — | 5,712 | ||||||||||||||||||||
Other acquisitions | 3,623 | 5,059 | 8,053 | 11,505 | ||||||||||||||||||||
Pro forma net income | $ | 95,318 | $ | 85,646 | $ | 309,617 | $ | 275,745 | ||||||||||||||||
Earnings per share-basic, as reported | $ | 0.3 | $ | 0.24 | $ | 1 | $ | 0.78 | ||||||||||||||||
Effect of purchased businesses for the period prior to acquisition: | ||||||||||||||||||||||||
Keystone Specialty | 0 | 0.02 | 0 | 0.08 | ||||||||||||||||||||
Sator | — | — | — | 0.02 | ||||||||||||||||||||
Other acquisitions | 0.01 | 0.02 | 0.03 | 0.04 | ||||||||||||||||||||
Pro forma earnings per share-basic (a) | $ | 0.31 | $ | 0.29 | $ | 1.03 | $ | 0.92 | ||||||||||||||||
Earnings per share-diluted, as reported | $ | 0.3 | $ | 0.24 | $ | 0.98 | $ | 0.77 | ||||||||||||||||
Effect of purchased businesses for the period prior to acquisition: | ||||||||||||||||||||||||
Keystone Specialty | 0 | 0.02 | 0 | 0.08 | ||||||||||||||||||||
Sator | — | — | — | 0.02 | ||||||||||||||||||||
Other acquisitions | 0.01 | 0.02 | 0.03 | 0.04 | ||||||||||||||||||||
Pro forma earnings per share-diluted (a) | $ | 0.31 | $ | 0.28 | $ | 1.01 | $ | 0.91 | ||||||||||||||||
(a) The sum of the individual earnings per share amounts may not equal the total due to rounding. |
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ' | |||||||||||||||
Computation Of Earnings Per Share | ' | |||||||||||||||
The following chart sets forth the computation of earnings per share (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net Income | $ | 91,515 | $ | 73,445 | $ | 301,050 | $ | 233,759 | ||||||||
Denominator for basic earnings per share—Weighted-average shares outstanding | 302,724 | 300,223 | 302,058 | 299,213 | ||||||||||||
Effect of dilutive securities: | ||||||||||||||||
RSUs | 658 | 883 | 804 | 775 | ||||||||||||
Stock options | 2,817 | 3,564 | 2,988 | 3,765 | ||||||||||||
Restricted stock | 7 | 15 | 7 | 18 | ||||||||||||
Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding | 306,206 | 304,685 | 305,857 | 303,771 | ||||||||||||
Earnings per share, basic | $ | 0.3 | $ | 0.24 | $ | 1 | $ | 0.78 | ||||||||
Earnings per share, diluted | $ | 0.3 | $ | 0.24 | $ | 0.98 | $ | 0.77 | ||||||||
Schedule Of Antidilutive Securities Excluded From Computation Of Diluted Earnings Per Share | ' | |||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||
September 30, | September 30, | |||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Antidilutive securities: | ||||||||||||||||
RSUs | 389 | — | 265 | — | ||||||||||||
Stock Options | 115 | — | 120 | — | ||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended | |||||||||||||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||||||||||||
Equity [Abstract] | ' | |||||||||||||||||||||||||||||
Schedule Of Accumulated Other Comprehensive Income (Loss) | ' | |||||||||||||||||||||||||||||
The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands): | ||||||||||||||||||||||||||||||
Three Months Ended | Three Months Ended | |||||||||||||||||||||||||||||
September 30, 2014 | September 30, 2013 | |||||||||||||||||||||||||||||
Foreign | Unrealized Gain (Loss) | Change in Unrealized Gain on Pension Plan | Accumulated | Foreign | Unrealized Gain (Loss) | Accumulated | ||||||||||||||||||||||||
Currency | on Cash Flow Hedges | Other | Currency | on Cash Flow Hedges | Other | |||||||||||||||||||||||||
Translation | Comprehensive | Translation | Comprehensive | |||||||||||||||||||||||||||
Income (Loss) | Income (Loss) | |||||||||||||||||||||||||||||
Beginning balance | $ | 40,222 | $ | (4,346 | ) | $ | 634 | $ | 36,510 | $ | (11,334 | ) | $ | (6,730 | ) | $ | (18,064 | ) | ||||||||||||
Pretax income (loss) | (39,329 | ) | (186 | ) | — | (39,515 | ) | 28,514 | (15,315 | ) | 13,199 | |||||||||||||||||||
Income tax effect | — | (7 | ) | — | (7 | ) | — | 5,647 | 5,647 | |||||||||||||||||||||
Reclassification of unrealized loss (gain) | — | 1,554 | (39 | ) | 1,515 | — | 15,956 | 15,956 | ||||||||||||||||||||||
Reclassification of deferred income taxes | — | (544 | ) | 9 | (535 | ) | — | (5,849 | ) | (5,849 | ) | |||||||||||||||||||
Hedge ineffectiveness | — | — | — | — | — | 293 | 293 | |||||||||||||||||||||||
Income tax effect | — | — | — | — | — | (107 | ) | (107 | ) | |||||||||||||||||||||
Ending balance | $ | 893 | $ | (3,529 | ) | $ | 604 | $ | (2,032 | ) | $ | 17,180 | $ | (6,105 | ) | $ | 11,075 | |||||||||||||
Nine Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||
30-Sep-14 | 30-Sep-13 | |||||||||||||||||||||||||||||
Foreign | Unrealized Gain (Loss) | Change in Unrealized Gain on Pension Plan | Accumulated | Foreign | Unrealized Gain (Loss) | Accumulated | ||||||||||||||||||||||||
Currency | on Cash Flow Hedges | Other | Currency | on Cash Flow Hedges | Other | |||||||||||||||||||||||||
Translation | Comprehensive | Translation | Comprehensive | |||||||||||||||||||||||||||
Income (Loss) | Income (Loss) | |||||||||||||||||||||||||||||
Beginning balance | $ | 24,906 | $ | (5,596 | ) | $ | 701 | $ | 20,011 | $ | 10,850 | $ | (10,091 | ) | $ | 759 | ||||||||||||||
Pretax income (loss) | (24,013 | ) | (362 | ) | — | (24,375 | ) | 6,330 | (14,170 | ) | (7,840 | ) | ||||||||||||||||||
Income tax effect | — | 39 | — | 39 | — | 5,305 | 5,305 | |||||||||||||||||||||||
Reclassification of unrealized loss (gain) | — | 3,647 | (129 | ) | 3,518 | — | 19,771 | 19,771 | ||||||||||||||||||||||
Reclassification of deferred income taxes | — | (1,257 | ) | 32 | (1,225 | ) | — | (7,211 | ) | (7,211 | ) | |||||||||||||||||||
Hedge ineffectiveness | — | — | — | — | — | 460 | 460 | |||||||||||||||||||||||
Income tax effect | — | — | — | — | — | (169 | ) | (169 | ) | |||||||||||||||||||||
Ending balance | $ | 893 | $ | (3,529 | ) | $ | 604 | $ | (2,032 | ) | $ | 17,180 | $ | (6,105 | ) | $ | 11,075 | |||||||||||||
Segment_and_Geographic_Informa1
Segment and Geographic Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
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 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 | 18,029 | 9,411 | 4,314 | — | 31,754 | |||||||||||||||
Three Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
Third Party | $ | 928,307 | $ | 369,787 | $ | — | $ | — | $ | 1,298,094 | ||||||||||
Intersegment | — | — | — | — | — | |||||||||||||||
Total segment revenue | $ | 928,307 | $ | 369,787 | $ | — | $ | — | $ | 1,298,094 | ||||||||||
Segment EBITDA | $ | 108,863 | $ | 40,457 | $ | — | $ | — | $ | 149,320 | ||||||||||
Depreciation and amortization | 16,417 | 5,740 | — | — | 22,157 | |||||||||||||||
North America | Europe | Specialty | Eliminations | Consolidated | ||||||||||||||||
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 | 52,682 | 24,868 | 13,097 | — | 90,647 | |||||||||||||||
Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Revenue: | ||||||||||||||||||||
Third Party | $ | 2,865,613 | $ | 880,226 | $ | — | $ | — | $ | 3,745,839 | ||||||||||
Intersegment | — | — | — | — | — | |||||||||||||||
Total segment revenue | $ | 2,865,613 | $ | 880,226 | $ | — | $ | — | $ | 3,745,839 | ||||||||||
Segment EBITDA | $ | 363,411 | $ | 103,946 | $ | — | $ | — | $ | 467,357 | ||||||||||
Depreciation and amortization | 48,555 | 13,313 | — | — | 61,868 | |||||||||||||||
Reconciliation Of Earnings Before Interest Taxes Depreciation And Amortization To Net Income Table [Text Block] | ' | |||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Segment EBITDA | $ | 191,554 | $ | 149,320 | $ | 608,102 | $ | 467,357 | ||||||||||||
Deduct: | ||||||||||||||||||||
Restructuring and acquisition related expenses(1) | 3,594 | 2,206 | 12,816 | 7,391 | ||||||||||||||||
Change in fair value of contingent consideration liabilities (2) | 12 | 712 | (2,000 | ) | 1,765 | |||||||||||||||
Add: | ||||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries | (721 | ) | — | (1,199 | ) | — | ||||||||||||||
EBITDA | 187,227 | 146,402 | 596,087 | 458,201 | ||||||||||||||||
Depreciation and amortization | 31,754 | 22,157 | 90,647 | 61,868 | ||||||||||||||||
Interest expense, net | 16,394 | 15,200 | 48,140 | 36,287 | ||||||||||||||||
Loss on debt extinguishment | — | — | 324 | 2,795 | ||||||||||||||||
Provision for income taxes | 47,564 | 35,600 | 155,926 | 123,492 | ||||||||||||||||
Net income | $ | 91,515 | $ | 73,445 | $ | 301,050 | $ | 233,759 | ||||||||||||
Schedule Of Capital Expenditures By Reportable Segment | ' | |||||||||||||||||||
The following table presents capital expenditures, which includes additions to property and equipment, by reportable segment (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Capital Expenditures | ||||||||||||||||||||
North America | $ | 20,986 | $ | 14,960 | $ | 61,262 | $ | 48,662 | ||||||||||||
Europe | 8,652 | 6,015 | 32,927 | 12,464 | ||||||||||||||||
Specialty | 3,222 | — | 6,002 | — | ||||||||||||||||
$ | 32,860 | $ | 20,975 | $ | 100,191 | $ | 61,126 | |||||||||||||
Schedule Of Assets By Reportable Segment | ' | |||||||||||||||||||
The following table presents assets by reportable segment (in thousands): | ||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Receivables, net | ||||||||||||||||||||
North America | $ | 318,575 | $ | 277,395 | ||||||||||||||||
Europe | 235,791 | 180,699 | ||||||||||||||||||
Specialty | 55,068 | — | ||||||||||||||||||
Total receivables, net | 609,434 | 458,094 | ||||||||||||||||||
Inventory | ||||||||||||||||||||
North America | 787,884 | 748,167 | ||||||||||||||||||
Europe | 389,941 | 328,785 | ||||||||||||||||||
Specialty | 163,500 | — | ||||||||||||||||||
Total inventory | 1,341,325 | 1,076,952 | ||||||||||||||||||
Property and Equipment, net | ||||||||||||||||||||
North America | 449,824 | 447,528 | ||||||||||||||||||
Europe | 123,211 | 99,123 | ||||||||||||||||||
Specialty | 39,257 | — | ||||||||||||||||||
Total property and equipment, net | 612,292 | 546,651 | ||||||||||||||||||
Other unallocated assets | 2,971,527 | 2,437,077 | ||||||||||||||||||
Total assets | $ | 5,534,578 | $ | 4,518,774 | ||||||||||||||||
Schedule Of Revenue By Geographic Area | ' | |||||||||||||||||||
The following table sets forth our revenue by geographic area (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Revenue | ||||||||||||||||||||
United States | $ | 1,126,468 | $ | 868,052 | $ | 3,369,636 | $ | 2,672,545 | ||||||||||||
United Kingdom | 349,012 | 266,384 | 1,003,889 | 708,089 | ||||||||||||||||
Other countries | 245,544 | 163,658 | 682,408 | 365,205 | ||||||||||||||||
$ | 1,721,024 | $ | 1,298,094 | $ | 5,055,933 | $ | 3,745,839 | |||||||||||||
Schedule Of Tangible Long-Lived Assets By Geographic Area | ' | |||||||||||||||||||
The following table sets forth our tangible long-lived assets by geographic area (in thousands): | ||||||||||||||||||||
September 30, | December 31, | |||||||||||||||||||
2014 | 2013 | |||||||||||||||||||
Long-lived Assets | ||||||||||||||||||||
United States | $ | 456,556 | $ | 418,869 | ||||||||||||||||
United Kingdom | 92,365 | 77,827 | ||||||||||||||||||
Other countries | 63,371 | 49,955 | ||||||||||||||||||
$ | 612,292 | $ | 546,651 | |||||||||||||||||
Schedule Of Revenue By Product Category | ' | |||||||||||||||||||
The following table sets forth our revenue by product category (in thousands): | ||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||
September 30, | September 30, | |||||||||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||||||
Aftermarket, other new and refurbished products | $ | 1,171,706 | $ | 793,925 | $ | 3,445,376 | $ | 2,199,009 | ||||||||||||
Recycled, remanufactured and related products and services | 371,632 | 349,411 | 1,108,376 | 1,060,681 | ||||||||||||||||
Other | 177,686 | 154,758 | 502,181 | 486,149 | ||||||||||||||||
$ | 1,721,024 | $ | 1,298,094 | $ | 5,055,933 | $ | 3,745,839 | |||||||||||||
Condensed_Consolidating_Financ1
Condensed Consolidating Financial Information (Tables) | 9 Months Ended | |||||||||||||||||||
Sep. 30, 2014 | ||||||||||||||||||||
Condensed Consolidating Financial Information [Abstract] | ' | |||||||||||||||||||
Condensed Consolidating Balance Sheets | ' | |||||||||||||||||||
LKQ CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Unaudited Condensed Consolidating Balance Sheets | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
September 30, 2014 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and equivalents | $ | 145,431 | $ | 26,855 | $ | 72,360 | $ | — | $ | 244,646 | ||||||||||
Receivables, net | 77 | 223,767 | 385,590 | — | 609,434 | |||||||||||||||
Intercompany receivables, net | 6,331 | — | 13,829 | (20,160 | ) | — | ||||||||||||||
Inventory | — | 885,665 | 455,660 | — | 1,341,325 | |||||||||||||||
Deferred income taxes | 3,071 | 67,560 | 3,366 | — | 73,997 | |||||||||||||||
Prepaid expenses and other current assets | 10,284 | 33,661 | 32,191 | — | 76,136 | |||||||||||||||
Total Current Assets | 165,194 | 1,237,508 | 962,996 | (20,160 | ) | 2,345,538 | ||||||||||||||
Property and Equipment, net | 534 | 457,975 | 153,783 | — | 612,292 | |||||||||||||||
Intangible Assets: | ||||||||||||||||||||
Goodwill | — | 1,518,384 | 738,769 | — | 2,257,153 | |||||||||||||||
Other intangibles, net | — | 126,522 | 94,527 | — | 221,049 | |||||||||||||||
Investment in Subsidiaries | 2,958,048 | 285,996 | — | (3,244,044 | ) | — | ||||||||||||||
Intercompany Notes Receivable | 619,070 | 32,207 | — | (651,277 | ) | — | ||||||||||||||
Other Assets | 50,433 | 27,235 | 25,963 | (5,085 | ) | 98,546 | ||||||||||||||
Total Assets | $ | 3,793,279 | $ | 3,685,827 | $ | 1,976,038 | $ | (3,920,566 | ) | $ | 5,534,578 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 501 | $ | 180,877 | $ | 222,209 | $ | — | $ | 403,587 | ||||||||||
Intercompany payables, net | — | 13,829 | 6,331 | (20,160 | ) | — | ||||||||||||||
Accrued expenses: | ||||||||||||||||||||
Accrued payroll-related liabilities | 7,054 | 54,794 | 26,234 | — | 88,082 | |||||||||||||||
Sales taxes payable | — | 6,545 | 38,553 | — | 45,098 | |||||||||||||||
Other accrued expenses | 11,434 | 76,371 | 40,033 | — | 127,838 | |||||||||||||||
Contingent consideration liabilities | — | 1,727 | 561 | — | 2,288 | |||||||||||||||
Other current liabilities | 1,127 | 12,816 | 17,644 | — | 31,587 | |||||||||||||||
Current portion of long-term obligations | 55,000 | 4,452 | 13,456 | — | 72,908 | |||||||||||||||
Total Current Liabilities | 75,116 | 351,411 | 365,021 | (20,160 | ) | 771,388 | ||||||||||||||
Long-Term Obligations, Excluding Current Portion | 1,016,429 | 6,423 | 802,281 | — | 1,825,133 | |||||||||||||||
Intercompany Notes Payable | — | 558,691 | 92,586 | (651,277 | ) | — | ||||||||||||||
Deferred Income Taxes | — | 137,785 | 26,570 | (5,085 | ) | 159,270 | ||||||||||||||
Other Noncurrent Liabilities | 34,040 | 63,314 | 13,739 | — | 111,093 | |||||||||||||||
Stockholders’ Equity | 2,667,694 | 2,568,203 | 675,841 | (3,244,044 | ) | 2,667,694 | ||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,793,279 | $ | 3,685,827 | $ | 1,976,038 | $ | (3,920,566 | ) | $ | 5,534,578 | |||||||||
LKQ CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Unaudited Condensed Consolidating Balance Sheets | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
December 31, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Assets | ||||||||||||||||||||
Current Assets: | ||||||||||||||||||||
Cash and equivalents | $ | 77,926 | $ | 13,693 | $ | 58,869 | $ | — | $ | 150,488 | ||||||||||
Receivables, net | — | 126,926 | 331,168 | — | 458,094 | |||||||||||||||
Intercompany receivables, net | 2,275 | 6,923 | — | (9,198 | ) | — | ||||||||||||||
Inventory | — | 687,164 | 389,788 | — | 1,076,952 | |||||||||||||||
Deferred income taxes | 3,189 | 57,422 | 3,327 | — | 63,938 | |||||||||||||||
Prepaid expenses and other current assets | 7,924 | 24,190 | 18,231 | — | 50,345 | |||||||||||||||
Total Current Assets | 91,314 | 916,318 | 801,383 | (9,198 | ) | 1,799,817 | ||||||||||||||
Property and Equipment, net | 668 | 419,617 | 126,366 | — | 546,651 | |||||||||||||||
Intangible Assets: | ||||||||||||||||||||
Goodwill | — | 1,248,746 | 688,698 | — | 1,937,444 | |||||||||||||||
Other intangibles, net | — | 56,069 | 97,670 | — | 153,739 | |||||||||||||||
Investment in Subsidiaries | 2,364,586 | 264,815 | — | (2,629,401 | ) | — | ||||||||||||||
Intercompany Notes Receivable | 959,185 | 118,740 | — | (1,077,925 | ) | — | ||||||||||||||
Other Assets | 49,218 | 20,133 | 17,241 | (5,469 | ) | 81,123 | ||||||||||||||
Total Assets | $ | 3,464,971 | $ | 3,044,438 | $ | 1,731,358 | $ | (3,721,993 | ) | $ | 4,518,774 | |||||||||
Liabilities and Stockholders’ Equity | ||||||||||||||||||||
Current Liabilities: | ||||||||||||||||||||
Accounts payable | $ | 314 | $ | 147,708 | $ | 201,047 | $ | — | $ | 349,069 | ||||||||||
Intercompany payables, net | — | — | 9,198 | (9,198 | ) | — | ||||||||||||||
Accrued expenses: | ||||||||||||||||||||
Accrued payroll-related liabilities | 5,236 | 32,850 | 20,609 | — | 58,695 | |||||||||||||||
Sales taxes payable | — | 5,694 | 25,007 | — | 30,701 | |||||||||||||||
Other accrued expenses | 26,714 | 51,183 | 31,476 | — | 109,373 | |||||||||||||||
Contingent consideration liabilities | — | 1,923 | 50,542 | — | 52,465 | |||||||||||||||
Other current liabilities | 2,803 | 13,039 | 20,273 | — | 36,115 | |||||||||||||||
Current portion of long-term obligations | 24,421 | 3,030 | 14,084 | — | 41,535 | |||||||||||||||
Total Current Liabilities | 59,488 | 255,427 | 372,236 | (9,198 | ) | 677,953 | ||||||||||||||
Long-Term Obligations, Excluding Current Portion | 1,016,249 | 6,554 | 241,443 | — | 1,264,246 | |||||||||||||||
Intercompany Notes Payable | — | 611,274 | 466,651 | (1,077,925 | ) | — | ||||||||||||||
Deferred Income Taxes | — | 110,110 | 29,181 | (5,469 | ) | 133,822 | ||||||||||||||
Other Noncurrent Liabilities | 38,489 | 46,417 | 7,102 | — | 92,008 | |||||||||||||||
Stockholders’ Equity | 2,350,745 | 2,014,656 | 614,745 | (2,629,401 | ) | 2,350,745 | ||||||||||||||
Total Liabilities and Stockholders’ Equity | $ | 3,464,971 | $ | 3,044,438 | $ | 1,731,358 | $ | (3,721,993 | ) | $ | 4,518,774 | |||||||||
Condensed Consolidating Statements of Income | ' | |||||||||||||||||||
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 (income) 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 Three Months Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Revenue | $ | — | $ | 876,862 | $ | 450,505 | $ | (29,273 | ) | $ | 1,298,094 | |||||||||
Cost of goods sold | — | 522,176 | 287,284 | (29,273 | ) | 780,187 | ||||||||||||||
Gross margin | — | 354,686 | 163,221 | — | 517,907 | |||||||||||||||
Facility and warehouse expenses | — | 79,565 | 28,784 | — | 108,349 | |||||||||||||||
Distribution expenses | — | 73,752 | 35,841 | — | 109,593 | |||||||||||||||
Selling, general and administrative expenses | 6,813 | 93,549 | 53,184 | — | 153,546 | |||||||||||||||
Restructuring and acquisition related expenses | — | 411 | 1,795 | — | 2,206 | |||||||||||||||
Depreciation and amortization | 65 | 14,014 | 6,739 | — | 20,818 | |||||||||||||||
Operating (loss) income | (6,878 | ) | 93,395 | 36,878 | — | 123,395 | ||||||||||||||
Other expense (income): | ||||||||||||||||||||
Interest expense, net | 13,335 | 81 | 1,784 | — | 15,200 | |||||||||||||||
Intercompany interest (income) expense, net | (13,028 | ) | 5,593 | 7,435 | — | — | ||||||||||||||
Change in fair value of contingent consideration liabilities | — | (72 | ) | 784 | — | 712 | ||||||||||||||
Other expense (income), net | 45 | (912 | ) | (695 | ) | — | (1,562 | ) | ||||||||||||
Total other expense, net | 352 | 4,690 | 9,308 | — | 14,350 | |||||||||||||||
(Loss) income before (benefit) provision for income taxes | (7,230 | ) | 88,705 | 27,570 | — | 109,045 | ||||||||||||||
(Benefit) provision for income taxes | (2,867 | ) | 33,973 | 4,494 | — | 35,600 | ||||||||||||||
Equity in earnings of subsidiaries | 77,808 | 5,656 | — | (83,464 | ) | — | ||||||||||||||
Net income | $ | 73,445 | $ | 60,388 | $ | 23,076 | $ | (83,464 | ) | $ | 73,445 | |||||||||
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 Income | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Revenue | $ | — | $ | 2,698,008 | $ | 1,133,369 | $ | (85,538 | ) | $ | 3,745,839 | |||||||||
Cost of goods sold | — | 1,593,764 | 707,884 | (85,538 | ) | 2,216,110 | ||||||||||||||
Gross margin | — | 1,104,244 | 425,485 | — | 1,529,729 | |||||||||||||||
Facility and warehouse expenses | — | 240,389 | 71,091 | — | 311,480 | |||||||||||||||
Distribution expenses | — | 224,266 | 95,767 | — | 320,033 | |||||||||||||||
Selling, general and administrative expenses | 20,130 | 282,364 | 134,120 | — | 436,614 | |||||||||||||||
Restructuring and acquisition related expenses | — | 750 | 6,641 | — | 7,391 | |||||||||||||||
Depreciation and amortization | 187 | 41,568 | 16,095 | — | 57,850 | |||||||||||||||
Operating (loss) income | (20,317 | ) | 314,907 | 101,771 | — | 396,361 | ||||||||||||||
Other expense (income): | ||||||||||||||||||||
Interest expense, net | 29,589 | 621 | 6,077 | — | 36,287 | |||||||||||||||
Intercompany interest (income) expense, net | (34,318 | ) | 16,901 | 17,417 | — | — | ||||||||||||||
Loss on debt extinguishment | 2,795 | — | — | — | 2,795 | |||||||||||||||
Change in fair value of contingent consideration liabilities | — | (936 | ) | 2,701 | — | 1,765 | ||||||||||||||
Other expense (income), net | 172 | (2,380 | ) | 471 | — | (1,737 | ) | |||||||||||||
Total other (income) expense, net | (1,762 | ) | 14,206 | 26,666 | — | 39,110 | ||||||||||||||
(Loss) income before (benefit) provision for income taxes | (18,555 | ) | 300,701 | 75,105 | — | 357,251 | ||||||||||||||
(Benefit) provision for income taxes | (7,199 | ) | 115,625 | 15,066 | — | 123,492 | ||||||||||||||
Equity in earnings of subsidiaries | 245,115 | 15,496 | — | (260,611 | ) | — | ||||||||||||||
Net income | $ | 233,759 | $ | 200,572 | $ | 60,039 | $ | (260,611 | ) | $ | 233,759 | |||||||||
Condensed Consolidating Statements of Comprehensive Income (Loss) | ' | |||||||||||||||||||
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 Three Months Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Net income | $ | 73,445 | $ | 60,388 | $ | 23,076 | $ | (83,464 | ) | $ | 73,445 | |||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||
Foreign currency translation | 28,514 | 13,130 | 28,104 | (41,234 | ) | 28,514 | ||||||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 625 | — | 127 | (127 | ) | 625 | ||||||||||||||
Total other comprehensive income | 29,139 | 13,130 | 28,231 | (41,361 | ) | 29,139 | ||||||||||||||
Total comprehensive income | $ | 102,584 | $ | 73,518 | $ | 51,307 | $ | (124,825 | ) | $ | 102,584 | |||||||||
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 Comprehensive Income | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
Net income | $ | 233,759 | $ | 200,572 | $ | 60,039 | $ | (260,611 | ) | $ | 233,759 | |||||||||
Other comprehensive income, net of tax: | ||||||||||||||||||||
Foreign currency translation | 6,330 | 3,386 | 7,107 | (10,493 | ) | 6,330 | ||||||||||||||
Net change in unrecognized gains/losses on derivative instruments, net of tax | 3,986 | — | 903 | (903 | ) | 3,986 | ||||||||||||||
Total other comprehensive income | 10,316 | 3,386 | 8,010 | (11,396 | ) | 10,316 | ||||||||||||||
Total comprehensive income | $ | 244,075 | $ | 203,958 | $ | 68,049 | $ | (272,007 | ) | $ | 244,075 | |||||||||
Condensed Consolidating Statements of Cash Flows | ' | |||||||||||||||||||
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 | ) | |||||||||||
Proceeds from sales of property and equipment | — | 1,218 | 1,956 | — | 3,174 | |||||||||||||||
Investments in unconsolidated subsidiaries | — | (600 | ) | (1,640 | ) | — | (2,240 | ) | ||||||||||||
Investment and intercompany note activity with subsidiaries | (197,714 | ) | (607 | ) | — | 198,321 | — | |||||||||||||
Acquisitions, net of cash acquired | — | (520,721 | ) | (129,893 | ) | — | (650,614 | ) | ||||||||||||
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 facility | 693,000 | — | 606,821 | — | 1,299,821 | |||||||||||||||
Repayments under revolving credit facility | (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 | ||||||||||
LKQ CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Unaudited Condensed Consolidating Statements of Cash Flows | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
For the Nine Months Ended September 30, 2013 | ||||||||||||||||||||
Parent | Guarantors | Non-Guarantors | Eliminations | Consolidated | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||||||||||||
Net cash provided by operating activities | $ | 101,136 | $ | 195,524 | $ | 116,212 | $ | (71,943 | ) | $ | 340,929 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||||||||||||
Purchases of property and equipment | (1 | ) | (40,824 | ) | (20,301 | ) | — | (61,126 | ) | |||||||||||
Proceeds from sales of property and equipment | — | 1,032 | 427 | — | 1,459 | |||||||||||||||
Investment in unconsolidated subsidiary | — | — | (9,136 | ) | — | (9,136 | ) | |||||||||||||
Investment and intercompany note activity with subsidiaries | (418,205 | ) | (84,893 | ) | — | 503,098 | — | |||||||||||||
Acquisitions, net of cash acquired | — | (21,570 | ) | (374,404 | ) | — | (395,974 | ) | ||||||||||||
Net cash used in investing activities | (418,206 | ) | (146,255 | ) | (403,414 | ) | 503,098 | (464,777 | ) | |||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||||||||||||
Proceeds from exercise of stock options | 13,647 | — | — | — | 13,647 | |||||||||||||||
Excess tax benefit from stock-based payments | 15,998 | — | — | — | 15,998 | |||||||||||||||
Proceeds from issuance of senior notes | 600,000 | — | — | — | 600,000 | |||||||||||||||
Borrowings under revolving credit facility | 315,000 | — | 84,758 | — | 399,758 | |||||||||||||||
Repayments under revolving credit facility | (616,000 | ) | — | (129,313 | ) | — | (745,313 | ) | ||||||||||||
Borrowings under term loans | 35,000 | — | — | — | 35,000 | |||||||||||||||
Repayments under term loans | (11,250 | ) | — | — | — | (11,250 | ) | |||||||||||||
Borrowings under receivables securitization facility | — | — | 41,500 | — | 41,500 | |||||||||||||||
Repayments under receivables securitization facility | — | — | (111,500 | ) | — | (111,500 | ) | |||||||||||||
Repayments of other long-term debt | (925 | ) | (7,983 | ) | (10,610 | ) | — | (19,518 | ) | |||||||||||
Payments of other obligations | — | (473 | ) | (31,618 | ) | — | (32,091 | ) | ||||||||||||
Other financing activities, net | (16,830 | ) | — | (82 | ) | — | (16,912 | ) | ||||||||||||
Investment and intercompany note activity with parent | — | 25,095 | 478,003 | (503,098 | ) | — | ||||||||||||||
Dividends | — | (71,943 | ) | — | 71,943 | — | ||||||||||||||
Net cash provided by (used in) financing activities | 334,640 | (55,304 | ) | 321,138 | (431,155 | ) | 169,319 | |||||||||||||
Effect of exchange rate changes on cash and equivalents | — | — | 2,096 | — | 2,096 | |||||||||||||||
Net increase (decrease) in cash and equivalents | 17,570 | (6,035 | ) | 36,032 | — | 47,567 | ||||||||||||||
Cash and equivalents, beginning of period | 18,396 | 18,253 | 23,121 | — | 59,770 | |||||||||||||||
Cash and equivalents, end of period | $ | 35,966 | $ | 12,218 | $ | 59,153 | $ | — | $ | 107,337 | ||||||||||
Financial_Statement_Informatio3
Financial Statement Information - Additional Information (Details) (USD $) | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | |
Finite-Lived Intangible Assets | ' | ' | ' |
Reserve for estimated returns, discounts and allowances | $30,000,000 | ' | $26,600,000 |
Reserve for uncollectible accounts | 19,100,000 | ' | 14,400,000 |
Amortization expense | 24,400,000 | 9,000,000 | ' |
Estimated annual amortization expense in year one | 32,400,000 | ' | ' |
Estimated annual amortization expense in year two | 29,400,000 | ' | ' |
Estimated annual amortization expense in year three | 26,100,000 | ' | ' |
Estimated annual amortization expense in year four | 23,700,000 | ' | ' |
Estimated annual amortization expense in year five | 18,700,000 | ' | ' |
Investment in unconsolidated subsidiaries | 9,500,000 | ' | ' |
Aftermarket and refurbished products | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Inventory recognized for business combinations | 217,300,000 | ' | ' |
Salvage and remanufactured products | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Inventory recognized for business combinations | 13,000,000 | ' | ' |
Salvage Mechanical Products | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Standard warranty period | '6 months | ' | ' |
Remanufactured Engines | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Standard warranty period | '3 years | ' | ' |
All 2014 Acquisitions | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Inventory recognized for business combinations | 230,273,000 | ' | ' |
Intangible assets recognized | 96,727,000 | ' | ' |
Keystone Specialty | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Inventory recognized for business combinations | 151,013,000 | ' | ' |
Intangible assets recognized | 70,830,000 | ' | ' |
Trade names and trademarks | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Intangible assets recognized | 24,700,000 | ' | ' |
Trade names and trademarks | Minimum | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Useful life, years | '10 years | ' | ' |
Trade names and trademarks | Maximum | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Useful life, years | '30 years | ' | ' |
Trade names and trademarks | Keystone Specialty | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Intangible assets recognized | 20,900,000 | ' | ' |
Software and technology related assets | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Intangible assets recognized | 26,800,000 | ' | ' |
Software and technology related assets | Minimum | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Useful life, years | '5 years | ' | ' |
Software and technology related assets | Maximum | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Useful life, years | '6 years | ' | ' |
Software and technology related assets | Keystone Specialty | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Intangible assets recognized | 26,800,000 | ' | ' |
Customer relationships | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Intangible assets recognized | 42,800,000 | ' | ' |
Customer relationships | Minimum | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Useful life, years | '5 years | ' | ' |
Customer relationships | Maximum | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Useful life, years | '15 years | ' | ' |
Customer relationships | Keystone Specialty | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Intangible assets recognized | 23,100,000 | ' | ' |
Covenants not to compete | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Intangible assets recognized | 2,400,000 | ' | ' |
Covenants not to compete | Minimum | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Useful life, years | '1 year | ' | ' |
Covenants not to compete | Maximum | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Useful life, years | '5 years | ' | ' |
ACM Parts | ' | ' | ' |
Finite-Lived Intangible Assets | ' | ' | ' |
Investment in unconsolidated subsidiaries | $7,600,000 | ' | ' |
Investment in unconsolidated subsidiary, ownership percentage | ' | 49.00% | ' |
Equity method investment, ownership percentage of other investors | ' | 51.00% | ' |
Financial_Statement_Informatio4
Financial Statement Information Schedule of Inventory (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Product Information | ' | ' |
Inventory | $1,341,325 | $1,076,952 |
Aftermarket and refurbished products | ' | ' |
Product Information | ' | ' |
Inventory | 944,451 | 706,600 |
Salvage and remanufactured products | ' | ' |
Product Information | ' | ' |
Inventory | $396,874 | $370,352 |
Changes_in_Carrying_Amount_of_
Changes in Carrying Amount of Goodwill (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Goodwill [Roll Forward] | ' |
Beginning balance | $1,937,444 |
Business acquisitions and adjustments to previously recorded goodwill | 352,938 |
Exchange rate effects | -33,229 |
Ending balance | 2,257,153 |
North America | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 1,358,937 |
Business acquisitions and adjustments to previously recorded goodwill | 44,981 |
Exchange rate effects | -6,332 |
Ending balance | 1,397,586 |
Europe | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 578,507 |
Business acquisitions and adjustments to previously recorded goodwill | 73,959 |
Exchange rate effects | -26,898 |
Ending balance | 625,568 |
Specialty | ' |
Goodwill [Roll Forward] | ' |
Beginning balance | 0 |
Business acquisitions and adjustments to previously recorded goodwill | 233,998 |
Exchange rate effects | 1 |
Ending balance | $233,999 |
Components_of_Other_Intangible
Components of Other Intangibles (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets | ' | ' |
Gross carrying amount | $288,319 | $197,523 |
Accumulated amortization | -67,270 | -43,784 |
Net | 221,049 | 153,739 |
Trade names and trademarks | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross carrying amount | 165,262 | 143,577 |
Accumulated amortization | -33,643 | -27,950 |
Net | 131,619 | 115,627 |
Customer relationships | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross carrying amount | 71,345 | 29,583 |
Accumulated amortization | -21,906 | -10,770 |
Net | 49,439 | 18,813 |
Software and technology related assets | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross carrying amount | 45,513 | 20,384 |
Accumulated amortization | -8,657 | -2,718 |
Net | 36,856 | 17,666 |
Covenants not to compete | ' | ' |
Finite-Lived Intangible Assets | ' | ' |
Gross carrying amount | 6,199 | 3,979 |
Accumulated amortization | -3,064 | -2,346 |
Net | $3,135 | $1,633 |
Changes_in_Warranty_Reserve_De
Changes in Warranty Reserve (Details) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 |
Warranty Reserve [Roll Forward] | ' |
Beginning balance | $12,447 |
Warranty expense | 22,890 |
Warranty claims | -20,514 |
Ending balance | $14,823 |
Equity_Incentive_Plans_Additio
Equity Incentive Plans - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Stock options granted (shares) | ' | ' | 126,755 | ' |
Stock-based compensation expense | $5,184,000 | $5,730,000 | $16,967,000 | $16,292,000 |
RSUs | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' |
Number of shares that RSUs convert into on the applicable vesting date | ' | ' | 1 | ' |
RSUs granted (shares) | ' | ' | 664,897 | ' |
Fair value of RSUs or restricted stock vested during the period | ' | ' | 27,700,000 | ' |
Stock-based compensation expense | 4,434,000 | 4,559,000 | 14,625,000 | 12,674,000 |
Performance Shares | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' |
Stock-based compensation expense | 1,800,000 | 2,300,000 | 6,500,000 | 6,000,000 |
Stock Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' |
Stock-based compensation expense | 703,000 | 1,124,000 | 2,203,000 | 3,457,000 |
Restricted Stock | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Vesting period | ' | ' | '5 years | ' |
Stock-based compensation expense | $47,000 | $47,000 | $139,000 | $161,000 |
Minimum | Stock Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Stock option expiration period | ' | ' | '6 years | ' |
Maximum | Stock Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Stock option expiration period | ' | ' | '10 years | ' |
Summary_of_Transactions_in_Sto
Summary of Transactions in Stock-Based Compensation Plans (Details) (USD $) | 9 Months Ended |
Sep. 30, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ' |
Balance, beginning of period | 6,832,331 |
Granted | 126,755 |
Exercised | -1,250,620 |
Cancelled | -53,749 |
Balance, end of period | 5,654,717 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Roll Forward] | ' |
Balance, weighted average exercise price, beginning of period | $7.04 |
Granted, weighted average exercise price | $32.31 |
Exercised, weighted average exercise price | $5.21 |
Cancelled, weighted average exercise price | $13.42 |
Balance, weighted average exercise price, end of period | $7.95 |
Shares Available For Grant | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Including Options, Shares Available for Grant [Roll Forward] | ' |
Balance, beginning of period | 13,965,440 |
Granted | -791,652 |
Cancelled | 142,887 |
Balance, end of period | 13,316,675 |
RSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Balance, weighted average grant date fair value, beginning of period | $16.63 |
Granted, weighted average grant date fair value | $31.82 |
Vested, weighted average grant date fair value | $17.01 |
Cancelled, weighted average grant date fair value | $20.49 |
Balance, weighted average grant date fair value, end of period | $20.98 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Balance, beginning of period | 2,558,213 |
Granted | 664,897 |
Vested | -975,462 |
Cancelled | -89,138 |
Balance, end of period | 2,158,510 |
Restricted Stock | ' |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Roll Forward] | ' |
Balance, weighted average grant date fair value, beginning of period | $9.30 |
Vested, weighted average grant date fair value | $9.30 |
Balance, weighted average grant date fair value, end of period | $9.30 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ' |
Balance, beginning of period | 20,000 |
Vested | -10,000 |
Balance, end of period | 10,000 |
Schedule_of_PreTax_StockBased_
Schedule of Pre-Tax Stock-Based Compensation Expense (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Stock-based compensation expense | $5,184 | $5,730 | $16,967 | $16,292 |
RSUs | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Stock-based compensation expense | 4,434 | 4,559 | 14,625 | 12,674 |
Stock Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Stock-based compensation expense | 703 | 1,124 | 2,203 | 3,457 |
Restricted Stock | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' | ' | ' | ' |
Stock-based compensation expense | $47 | $47 | $139 | $161 |
Schedule_of_StockBased_Compens
Schedule of Stock-Based Compensation Expense Included in Statements of Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' |
Stock-based compensation expense, before tax | $5,184 | $5,730 | $16,967 | $16,292 |
Income tax benefit | -1,996 | -2,235 | -6,532 | -6,354 |
Total stock-based compensation expense, net of tax | 3,188 | 3,495 | 10,435 | 9,938 |
Cost of goods sold | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' |
Stock-based compensation expense, before tax | 105 | 98 | 308 | 294 |
Facility and warehouse expenses | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' |
Stock-based compensation expense, before tax | 527 | 687 | 1,672 | 2,058 |
Selling, general and administrative expenses | ' | ' | ' | ' |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs | ' | ' | ' | ' |
Stock-based compensation expense, before tax | $4,552 | $4,945 | $14,987 | $13,940 |
Schedule_of_StockBased_Compens1
Schedule of Stock-Based Compensation Expense Expected to be Recognized (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Remainder of 2014 | $5,016 |
2015 | 13,855 |
2016 | 8,764 |
2017 | 5,058 |
2018 | 2,553 |
2019 | 110 |
Total unrecognized compensation expense | 35,356 |
RSUs | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Remainder of 2014 | 4,292 |
2015 | 13,459 |
2016 | 8,433 |
2017 | 5,049 |
2018 | 2,553 |
2019 | 110 |
Total unrecognized compensation expense | 33,896 |
Stock Options | ' |
Share-based Compensation Arrangement by Share-based Payment Award | ' |
Remainder of 2014 | 724 |
2015 | 396 |
2016 | 331 |
2017 | 9 |
Total unrecognized compensation expense | $1,460 |
LongTerm_Obligations_Additiona
Long-Term Obligations - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 0 Months Ended | 9 Months Ended | 9 Months Ended | |||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Mar. 27, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 28, 2012 | Sep. 30, 2014 | Sep. 28, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Mar. 27, 2014 | Mar. 27, 2014 | Mar. 27, 2014 | Sep. 30, 2013 | 3-May-13 | 9-May-13 | |
Credit Agreement | Credit Agreement | Credit Agreement | Credit Agreement | Senior notes | Senior notes | Receivables securitization facility | Receivables securitization facility | Receivables securitization facility | Receivables securitization facility | Amended Credit Agreement | Amended Credit Agreement | Amended Credit Agreement | Amended Credit Agreement | Original Credit Agreement | Original Credit Agreement | Four Point Seven Five Percent Senior Notes Due May 2023 | ||||||
Credit Agreement | Credit Agreement | Multicurrency Component [Member] | US Dollar Component [Member] | Credit Agreement | Credit Agreement | |||||||||||||||||
Credit Agreement | Credit Agreement | |||||||||||||||||||||
Debt Instrument | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Extension period of maturity date for credit agreement | ' | ' | ' | ' | ' | ' | '1 year | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum credit agreement borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $2,300,000,000 | ' | ' | ' | $1,800,000,000 | ' |
Maximum revolving credit facility borrowings | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,690,000,000 | 165,000,000 | ' | ' | ' |
Debt and capital lease obligations | 1,898,041,000 | ' | 1,898,041,000 | ' | 1,305,781,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 450,000,000 | ' | ' | ' | ' | ' |
Maximum increase of revolving credit facility or term loans | ' | ' | ' | ' | ' | 400,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum leverage ratio for incremental borrowings | ' | ' | ' | ' | ' | 2.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Term loan quarterly repayment, percentage of initial balance | ' | ' | ' | ' | ' | 1.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Prepayment requirement, duration to reinvest proceeds from sale or disposition of certain assets | ' | ' | ' | ' | ' | '12 months | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum net leverage ratio | ' | ' | ' | ' | ' | 3.5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum consideration for acquisitions during 12 month period to change the maximum net leverage ratio | ' | ' | ' | ' | ' | 200,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum net leverage ratio subsequent to acquisitions | ' | ' | ' | ' | ' | 4 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Minimum interest coverage ratio | ' | ' | ' | ' | ' | 3 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increment change in applicable margin | ' | ' | ' | ' | ' | 0.25% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Weighted average interest rates | ' | ' | ' | ' | ' | ' | 2.35% | ' | 3.05% | ' | ' | ' | 0.92% | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Increment change in commitment fees | ' | ' | ' | ' | ' | 0.05% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fronting fee on letters of credit in addition to participation commission | ' | ' | ' | ' | ' | 0.13% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under credit agreement, carrying value | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | 672,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Current maturities of credit agreement | ' | ' | ' | ' | ' | ' | 22,500,000 | ' | 22,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Outstanding letters of credit | ' | ' | ' | ' | ' | ' | 60,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Availability on the revolving credit facility | ' | ' | ' | ' | ' | ' | 1,100,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Payments of debt issuance costs | ' | ' | ' | ' | ' | ' | 3,700,000 | 7,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fees capitalized | ' | ' | ' | ' | ' | 3,400,000 | ' | 6,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Loss on debt extinguishment | 0 | 0 | -324,000 | -2,795,000 | ' | 300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,100,000 | ' | ' | ' | 1,700,000 | ' | ' |
Debt instrument, carrying amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | 600,000,000 | 600,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Senior notes interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4.75% |
Receivables securitization facility term period | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | '3 years | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables securitization maximum borrowing capacity | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 80,000,000 | ' | 97,000,000 | ' | ' | ' | ' | ' | ' | ' | ' |
Receivables used as collateral for receivables securitization facility | 123,400,000 | ' | 123,400,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under receivable securitization facility, carrying value | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $80,000,000 | ' | $0 | ' | ' | ' | ' | ' | ' | ' |
Schedule_of_LongTerm_Obligatio
Schedule of Long-Term Obligations (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Debt Instrument | ' | ' |
Less current maturities | ($72,908) | ($41,535) |
Long-Term Obligations, Excluding Current Portion | 1,825,133 | 1,264,246 |
Long-term obligations, total | 1,898,041 | 1,305,781 |
Term loan | ' | ' |
Debt Instrument | ' | ' |
Term loan | 438,750 | 438,750 |
Revolving credit facility | ' | ' |
Debt Instrument | ' | ' |
Revolving credit facility | 693,299 | 233,804 |
Senior notes | ' | ' |
Debt Instrument | ' | ' |
Senior notes | 600,000 | 600,000 |
Receivables securitization facility | ' | ' |
Debt Instrument | ' | ' |
Receivables securitization facility | 80,000 | 0 |
Notes payable | ' | ' |
Debt Instrument | ' | ' |
Notes payable | 53,994 | 15,730 |
Other long-term debt | ' | ' |
Debt Instrument | ' | ' |
Other long-term debt | $31,998 | $17,497 |
Schedule_of_LongTerm_Obligatio1
Schedule of Long-Term Obligations (Parenthetical) (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Millions, unless otherwise specified | ||
Notes payable | ' | ' |
Debt Instrument | ' | ' |
Weighted average interest rates | 1.10% | 1.10% |
Other long-term debt | ' | ' |
Debt Instrument | ' | ' |
Weighted average interest rates | 2.90% | 3.50% |
Credit Agreement | ' | ' |
Debt Instrument | ' | ' |
Weighted average interest rates | 2.35% | 3.05% |
Secured Debt, Current | 22.5 | 22.5 |
Derivative_Instruments_and_Hed2
Derivative Instruments and Hedging Activities - Additional Information (Details) | 9 Months Ended | ||
Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | |
USD ($) | Foreign currency forward contracts | Foreign currency forward contracts | |
Pound Sterling Notional Amount | Euro Notional Amount | ||
GBP (£) | GBP (£) | ||
Derivative | ' | ' | ' |
Derivative, Notional Amount | ' | £ 70,000,000 | £ 149,976,000 |
Payments for (Proceeds from) Derivative Instrument, Financing Activities | 20,000,000 | ' | ' |
Net loss included in accumulated other comprehensive income (loss) to be reclassified into interest expense within the next 12 months | ($3,600,000) | ' | ' |
Terms_of_Interest_Rate_Swap_Ag
Terms of Interest Rate Swap Agreements (Details) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | USD ($) | USD ($) | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Interest rate swaps | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts | Foreign currency forward contracts |
US Dollar Notional Amount | US Dollar Notional Amount | Pound Sterling Notional Amount | Pound Sterling Notional Amount | Pound Sterling Notional Amount | Pound Sterling Notional Amount | Canadian Dollar Notional Amount | Canadian Dollar Notional Amount | Canadian Dollar Notional Amount | Canadian Dollar Notional Amount | Pound Sterling Notional Amount | Pound Sterling Notional Amount | Euro Notional Amount | Euro Notional Amount | |||
USD ($) | USD ($) | USD ($) | GBP (£) | USD ($) | GBP (£) | USD ($) | CAD | USD ($) | CAD | USD ($) | GBP (£) | USD ($) | GBP (£) | |||
Derivative | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Derivative, Notional Amount | ' | ' | $420,000 | $420,000 | ' | £ 50,000 | ' | £ 50,000 | ' | 25,000 | ' | 25,000 | ' | £ 70,000 | ' | £ 149,976 |
Derivative Liabilities, Current | ' | 21,818 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 10,186 | ' | 11,632 | ' |
Derivative Liabilities, Noncurrent | $5,556 | $8,470 | $5,128 | $8,099 | $396 | ' | $345 | ' | $32 | ' | $26 | ' | ' | ' | ' | ' |
Fair_Value_Measurements_Additi
Fair Value Measurements - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 3 Months Ended | ||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Mar. 31, 2013 | Mar. 31, 2013 | Dec. 31, 2011 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2011 | |
USD ($) | USD ($) | USD ($) | USD ($) | Credit Agreement | Credit Agreement | Receivables securitization facility | Receivables securitization facility | Senior notes | Senior notes | ECP 2012 Contingent Payment | ECP 2012 Contingent Payment | ECP 2012 Contingent Payment | ECP 2013 Contingent Payment | ECP 2013 Contingent Payment | ECP 2013 Contingent Payment | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | GBP (£) | GBP (£) | USD ($) | GBP (£) | GBP (£) | |||||
Fair Value Measurements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Maximum payment under contingent consideration agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | £ 25,000,000 | ' | ' | £ 30,000,000 |
Contingent consideration payments | 0 | 0 | 52,305,000 | 38,349,000 | ' | ' | ' | ' | ' | ' | 33,900,000 | 22,400,000 | ' | 44,800,000 | 26,900,000 | ' |
Contingent consideration other settlements | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 3,900,000 | 2,600,000 | ' | 5,100,000 | 3,100,000 | ' |
(Gains) Losses related to contingent consideration obligations outstanding at period-end | ' | ' | 200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under credit agreement, carrying value | ' | ' | ' | ' | 1,100,000,000 | 672,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Borrowings under receivable securitization facility, carrying value | ' | ' | ' | ' | ' | ' | 80,000,000 | 0 | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, fair value | ' | ' | ' | ' | ' | ' | ' | ' | 581,000,000 | ' | ' | ' | ' | ' | ' | ' |
Debt instrument, carrying amount | ' | ' | ' | ' | ' | ' | ' | ' | $600,000,000 | $600,000,000 | ' | ' | ' | ' | ' | ' |
Financial_Assets_and_Liabiliti
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) (Fair Value, Measurements, Recurring, USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value assets measured on recurring basis | $26,438 | $25,745 |
Fair value liabilities measured on recurring basis | 38,691 | 111,173 |
Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value assets measured on recurring basis | 26,438 | 25,745 |
Fair value liabilities measured on recurring basis | 31,390 | 55,520 |
Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value liabilities measured on recurring basis | 7,301 | 55,653 |
Cash surrender value of life insurance | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value assets measured on recurring basis | 26,438 | 25,745 |
Cash surrender value of life insurance | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value assets measured on recurring basis | 26,438 | 25,745 |
Contingent consideration liabilities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value liabilities measured on recurring basis | 7,301 | 55,653 |
Contingent consideration liabilities | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value liabilities measured on recurring basis | 7,301 | 55,653 |
Deferred compensation liabilities | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value liabilities measured on recurring basis | 25,834 | 25,232 |
Deferred compensation liabilities | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value liabilities measured on recurring basis | 25,834 | 25,232 |
Foreign currency forward contracts | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value liabilities measured on recurring basis | ' | 21,818 |
Foreign currency forward contracts | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value liabilities measured on recurring basis | ' | 21,818 |
Interest rate swaps | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value liabilities measured on recurring basis | 5,556 | 8,470 |
Interest rate swaps | Fair Value, Inputs, Level 2 | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ' | ' |
Fair value liabilities measured on recurring basis | $5,556 | $8,470 |
Significant_Unobservable_Input
Significant Unobservable Inputs Used in Fair Value Measurements (Details) (Contingent consideration liabilities, Fair Value, Inputs, Level 3) | Sep. 30, 2014 | Dec. 31, 2013 |
Contingent consideration liabilities | Fair Value, Inputs, Level 3 | ' | ' |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation | ' | ' |
Weighted Average, Probability of achieving payout targets | 78.70% | 70.60% |
Weighted Average, Discount rate | 7.50% | 6.50% |
Changes_in_Fair_Value_of_Conti
Changes in Fair Value of Contingent Consideration Obligations (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Contingent Consideration Obligations [Roll Forward] | ' | ' | ' | ' |
Beginning balance | $8,762 | $49,473 | $55,653 | $90,009 |
Contingent consideration liabilities recorded for business acquisitions | -1,203 | 1,204 | 5,854 | 3,854 |
Payments | 0 | 0 | -52,305 | -38,349 |
Loss (gain) included in earnings | 12 | 712 | -2,000 | 1,765 |
Exchange rate effects | -270 | 3,096 | 99 | -2,794 |
Ending balance | $7,301 | $54,485 | $7,301 | $54,485 |
Future_Minimum_Lease_Commitmen
Future Minimum Lease Commitments (Details) (USD $) | Sep. 30, 2014 |
In Thousands, unless otherwise specified | |
Commitments and Contingencies Disclosure [Abstract] | ' |
Operating Leases, Future Minimum Payments, Remainder of Fiscal Year | $35,353 |
2015 | 134,572 |
2016 | 114,205 |
2017 | 95,568 |
2018 | 78,838 |
2019 | 63,638 |
Thereafter | 251,142 |
Future Minimum Lease Payments | $773,316 |
Business_Combinations_Addition
Business Combinations - Additional Information (Details) | 3 Months Ended | 9 Months Ended | 9 Months Ended | 12 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 1 Months Ended | ||||||||||||||||||||||||
Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Dec. 31, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Oct. 31, 2014 | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Europe | Europe | North America | North America | Keystone Specialty | All 2014 Acquisitions Excluding Keystone Specialty | All 2014 Acquisitions Excluding Keystone Specialty | All 2014 Acquisitions Excluding Keystone Specialty | All 2014 Acquisitions Excluding Keystone Specialty | Netherlands Distributors | Netherlands Distributors Former Customers [Member] | All 2014 Acquisitions | All 2013 Acquisitions | Sator | Sator | All 2013 Acquisitions Excluding Sator | All 2013 Acquisitions Excluding Sator | All 2013 Acquisitions Excluding Sator | All 2013 Acquisitions Excluding Sator | UK Paint | Acquisition-related expenses | Acquisition-related expenses | Acquisition-related expenses | Acquisition-related expenses | Acquisition-related expenses | Acquisition-related expenses | Acquisition-related expenses | Acquisition-related expenses | Acquisition-related expenses | Subsequent Event | |
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | Europe | Wholesale North America Segment | Self Service Segment | USD ($) | USD ($) | USD ($) | EUR (€) | USD ($) | Europe | Wholesale North America Segment | Self Service Segment | Europe | USD ($) | USD ($) | USD ($) | USD ($) | All 2014 Acquisitions | All 2014 Acquisitions | Sator | UK Paint | UK Paint | USD ($) | ||||||||
USD ($) | USD ($) | USD ($) | USD ($) | USD ($) | |||||||||||||||||||||||||||||||
Business Acquisition | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Total acquisition date fair value of the consideration for acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | $471,100,000 | $233,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | $146,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $112,000,000 |
Cash used in acquisitions, net of cash acquired | ' | ' | 650,614,000 | 395,974,000 | ' | ' | ' | ' | ' | 427,100,000 | 210,700,000 | ' | ' | ' | ' | ' | ' | ' | 272,800,000 | 209,800,000 | 134,600,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes issued | ' | ' | ' | ' | ' | ' | ' | ' | ' | 31,500,000 | 11,842,000 | ' | ' | ' | ' | ' | 43,342,000 | 7,482,000 | 0 | ' | 7,482,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Other purchase price obligations | ' | ' | ' | ' | ' | ' | ' | ' | ' | 12,553,000 | 313,000 | ' | ' | ' | ' | ' | 12,866,000 | 214,000 | 0 | ' | 214,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Contingent consideration liability | ' | ' | ' | ' | ' | ' | ' | ' | ' | 0 | 5,854,000 | ' | ' | ' | ' | ' | 5,854,000 | 3,854,000 | 0 | ' | 3,854,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Settlement of pre-existing balances | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 4,922,000 | ' | ' | ' | ' | ' | 4,922,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 19 | 8 | 9 | 2 | 7 | 5 | ' | ' | ' | ' | 19 | 7 | 10 | 2 | 5 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2 |
Maximum payment under contingent consideration agreement | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 8,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 5,000,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill | 2,257,153,000 | ' | 2,257,153,000 | ' | 1,937,444,000 | 625,568,000 | 578,507,000 | 1,397,586,000 | 1,358,937,000 | 233,998,000 | 118,940,000 | ' | ' | ' | ' | ' | 352,938,000 | 235,447,000 | 142,721,000 | ' | 92,726,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Goodwill expected to be deductible for income tax purposes | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 32,200,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 18,300,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Revenue generated by acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 595,200,000 | 142,700,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Operating income generated by acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | 24,400,000 | -1,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and acquisition related expenses | $3,594,000 | $2,206,000 | $12,816,000 | $7,391,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | $1,300,000 | $2,000,000 | $3,200,000 | $6,000,000 | $500,000 | $2,300,000 | $3,600,000 | $1,400,000 | $1,400,000 | ' |
Purchase_Price_Allocations_for
Purchase Price Allocations for Acquisitions (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Business Acquisition | ' | ' |
Goodwill | $2,257,153 | $1,937,444 |
Keystone Specialty | ' | ' |
Business Acquisition | ' | ' |
Receivables | 48,473 | ' |
Receivable reserves | -4,403 | ' |
Inventory | 151,013 | ' |
Income taxes receivable | 13,972 | ' |
Prepaid expenses and other current assets | 8,339 | ' |
Property and equipment | 38,080 | ' |
Goodwill | 233,998 | ' |
Other intangibles | 70,830 | ' |
Other assets | 7,805 | ' |
Deferred income taxes | -17,418 | ' |
Current liabilities assumed | -65,439 | ' |
Debt assumed | 0 | ' |
Other noncurrent liabilities assumed | -14,147 | ' |
Contingent consideration liabilities | 0 | ' |
Other purchase price obligations | -12,553 | ' |
Notes issued | -31,500 | ' |
Cash used in acquisitions, net of cash acquired | 427,050 | ' |
All 2014 Acquisitions Excluding Keystone Specialty | ' | ' |
Business Acquisition | ' | ' |
Receivables | 57,191 | ' |
Receivable reserves | -2,817 | ' |
Inventory | 79,260 | ' |
Income taxes receivable | 0 | ' |
Prepaid expenses and other current assets | 3,266 | ' |
Property and equipment | 16,389 | ' |
Goodwill | 118,940 | ' |
Other intangibles | 25,897 | ' |
Other assets | 5,623 | ' |
Deferred income taxes | 429 | ' |
Current liabilities assumed | -34,880 | ' |
Debt assumed | -26,425 | ' |
Other noncurrent liabilities assumed | -9,282 | ' |
Contingent consideration liabilities | -5,854 | ' |
Other purchase price obligations | -313 | ' |
Notes issued | -11,842 | ' |
Settlement of pre-existing balances | -4,922 | ' |
Cash used in acquisitions, net of cash acquired | 210,660 | ' |
All 2014 Acquisitions | ' | ' |
Business Acquisition | ' | ' |
Receivables | 105,664 | ' |
Receivable reserves | -7,220 | ' |
Inventory | 230,273 | ' |
Income taxes receivable | 13,972 | ' |
Prepaid expenses and other current assets | 11,605 | ' |
Property and equipment | 54,469 | ' |
Goodwill | 352,938 | ' |
Other intangibles | 96,727 | ' |
Other assets | 13,428 | ' |
Deferred income taxes | -16,989 | ' |
Current liabilities assumed | -100,319 | ' |
Debt assumed | -26,425 | ' |
Other noncurrent liabilities assumed | -23,429 | ' |
Contingent consideration liabilities | -5,854 | ' |
Other purchase price obligations | -12,866 | ' |
Notes issued | -43,342 | ' |
Settlement of pre-existing balances | -4,922 | ' |
Cash used in acquisitions, net of cash acquired | 637,710 | ' |
Sator | ' | ' |
Business Acquisition | ' | ' |
Receivables | ' | 61,639 |
Receivable reserves | ' | -8,563 |
Inventory | ' | 71,784 |
Income taxes receivable | ' | 0 |
Prepaid expenses and other current assets | ' | 7,184 |
Property and equipment | ' | 19,484 |
Goodwill | ' | 142,721 |
Other intangibles | ' | 45,293 |
Other assets | ' | 2,049 |
Deferred income taxes | ' | -14,100 |
Current liabilities assumed | ' | -49,593 |
Debt assumed | ' | 0 |
Other noncurrent liabilities assumed | ' | -5,074 |
Contingent consideration liabilities | ' | 0 |
Other purchase price obligations | ' | 0 |
Notes issued | ' | 0 |
Cash used in acquisitions, net of cash acquired | ' | 272,824 |
All 2013 Acquisitions Excluding Sator | ' | ' |
Business Acquisition | ' | ' |
Receivables | ' | 38,685 |
Receivable reserves | ' | -3,246 |
Inventory | ' | 26,455 |
Income taxes receivable | ' | 0 |
Prepaid expenses and other current assets | ' | 1,933 |
Property and equipment | ' | 14,015 |
Goodwill | ' | 92,726 |
Other intangibles | ' | 12,353 |
Other assets | ' | 1,251 |
Deferred income taxes | ' | -564 |
Current liabilities assumed | ' | -36,799 |
Debt assumed | ' | -664 |
Other noncurrent liabilities assumed | ' | 0 |
Contingent consideration liabilities | ' | -3,854 |
Other purchase price obligations | ' | -214 |
Notes issued | ' | -7,482 |
Cash used in acquisitions, net of cash acquired | ' | 134,595 |
All 2013 Acquisitions | ' | ' |
Business Acquisition | ' | ' |
Receivables | ' | 100,324 |
Receivable reserves | ' | -11,809 |
Inventory | ' | 98,239 |
Income taxes receivable | ' | 0 |
Prepaid expenses and other current assets | ' | 9,117 |
Property and equipment | ' | 33,499 |
Goodwill | ' | 235,447 |
Other intangibles | ' | 57,646 |
Other assets | ' | 3,300 |
Deferred income taxes | ' | -14,664 |
Current liabilities assumed | ' | -86,392 |
Debt assumed | ' | -664 |
Other noncurrent liabilities assumed | ' | -5,074 |
Contingent consideration liabilities | ' | -3,854 |
Other purchase price obligations | ' | -214 |
Notes issued | ' | -7,482 |
Cash used in acquisitions, net of cash acquired | ' | $407,419 |
Pro_Forma_Effect_of_Businesses
Pro Forma Effect of Businesses Acquired (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||||||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | ||||
Business Acquisition | ' | ' | ' | ' | ||||
Revenue, as reported | $1,721,024 | $1,298,094 | $5,055,933 | $3,745,839 | ||||
Pro forma revenue | 1,725,839 | 1,577,389 | 5,175,702 | 4,784,286 | ||||
Net income, as reported | 91,515 | 73,445 | 301,050 | 233,759 | ||||
Pro forma net income | 95,318 | 85,646 | 309,617 | 275,745 | ||||
Earnings per share, basic | $0.30 | $0.24 | $1 | $0.78 | ||||
Pro forma earnings per share-basic (a) | $0.31 | [1] | $0.29 | [1] | $1.03 | [1] | $0.92 | [1] |
Earnings per share, diluted | $0.30 | $0.24 | $0.98 | $0.77 | ||||
Pro forma earnings per share-diluted (a) | $0.31 | [1] | $0.28 | [1] | $1.01 | [1] | $0.91 | [1] |
Keystone Specialty | ' | ' | ' | ' | ||||
Business Acquisition | ' | ' | ' | ' | ||||
Revenue of purchased businesses for the period prior to acquisition | 0 | 177,324 | 3,443 | 540,826 | ||||
Net income of purchased businesses for the period prior to acquisition, including pro forma purchase accounting adjustments | 180 | 7,142 | 514 | 24,769 | ||||
Effect of purchased businesses for the period prior to acquisition | $0 | $0.02 | $0 | $0.08 | ||||
Effect of purchased businesses for the period prior to acquisition | $0 | $0.02 | $0 | $0.08 | ||||
Sator | ' | ' | ' | ' | ||||
Business Acquisition | ' | ' | ' | ' | ||||
Revenue of purchased businesses for the period prior to acquisition | 0 | 0 | 0 | 126,309 | ||||
Net income of purchased businesses for the period prior to acquisition, including pro forma purchase accounting adjustments | 0 | 0 | 0 | 5,712 | ||||
Effect of purchased businesses for the period prior to acquisition | $0 | $0 | $0 | $0.02 | ||||
Effect of purchased businesses for the period prior to acquisition | $0 | $0 | $0 | $0.02 | ||||
All 2014 and 2013 Acquisitions Excluding Keystone Specialty and Sator | ' | ' | ' | ' | ||||
Business Acquisition | ' | ' | ' | ' | ||||
Revenue of purchased businesses for the period prior to acquisition | 4,815 | 101,971 | 116,326 | 371,312 | ||||
Net income of purchased businesses for the period prior to acquisition, including pro forma purchase accounting adjustments | $3,623 | $5,059 | $8,053 | $11,505 | ||||
Effect of purchased businesses for the period prior to acquisition | $0.01 | $0.02 | $0.03 | $0.04 | ||||
Effect of purchased businesses for the period prior to acquisition | $0.01 | $0.02 | $0.03 | $0.04 | ||||
[1] | The sum of the individual earnings per share amounts may not equal the total due to rounding. |
Restructuring_and_Acquisition_1
Restructuring and Acquisition Related Expenses - Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 9 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Sep. 30, 2014 | Dec. 31, 2013 |
Restructuring expenses | Restructuring expenses | Acquisition-related expenses | Acquisition-related expenses | Acquisition-related expenses | Acquisition-related expenses | Netherlands Distributors | UK Paint | UK Paint | Sator | Keystone Specialty | Keystone Specialty | All 2014 & 2013 Acquisitions Excluding Keystone Specialty | All 2014 & 2013 Acquisitions Excluding Keystone Specialty | Europe | Europe | |||||
Acquisition-related expenses | Acquisition-related expenses | Acquisition-related expenses | Restructuring expenses | Restructuring expenses | Restructuring expenses | Restructuring expenses | Restructuring expenses | UK Paint | ||||||||||||
Restructuring Cost and Reserve | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Restructuring and acquisition related expenses | $3,594 | $2,206 | $12,816 | $7,391 | $200 | $1,400 | $1,300 | $2,000 | $3,200 | $6,000 | ' | $1,400 | $1,400 | $3,600 | $400 | $5,800 | $300 | $2,200 | $1,600 | ' |
Number of acquisitions | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 7 | ' | ' | ' | ' | ' | ' | ' | ' | 5 |
Computation_of_Earnings_Per_Sh
Computation of Earnings Per Share (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Earnings Per Share [Abstract] | ' | ' | ' | ' |
Net income | $91,515 | $73,445 | $301,050 | $233,759 |
Denominator for basic earnings per share—Weighted-average shares outstanding | 302,724 | 300,223 | 302,058 | 299,213 |
Effect of dilutive securities: | ' | ' | ' | ' |
RSUs | 658 | 883 | 804 | 775 |
Stock options | 2,817 | 3,564 | 2,988 | 3,765 |
Restricted stock | 7 | 15 | 7 | 18 |
Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding | 306,206 | 304,685 | 305,857 | 303,771 |
Earnings per share, basic | $0.30 | $0.24 | $1 | $0.78 |
Earnings per share, diluted | $0.30 | $0.24 | $0.98 | $0.77 |
Schedule_of_Antidilutive_Secur
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) | 3 Months Ended | 9 Months Ended |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2014 |
RSUs | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' |
Antidilutive securities | 389 | 265 |
Stock Options | ' | ' |
Antidilutive Securities Excluded from Computation of Earnings Per Share | ' | ' |
Antidilutive securities | 115 | 120 |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Details) (USD $) | 9 Months Ended | |
In Millions, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
Income Taxes [Line Items] | ' | ' |
Effective income tax rate | 34.00% | 34.60% |
Income Tax Expense (Benefit), Adjustment of Deferred Tax (Asset) Liability | ' | $2.60 |
Foreign Tax Authority | ' | ' |
Income Taxes [Line Items] | ' | ' |
Income Tax Expense (Benefit), Adjustment of Deferred Tax (Asset) Liability | ' | 1.6 |
State and Local Jurisdiction | ' | ' |
Income Taxes [Line Items] | ' | ' |
Income Tax Expense (Benefit), Adjustment of Deferred Tax (Asset) Liability | ' | $0.90 |
Accumulated_Other_Comprehensiv2
Accumulated Other Comprehensive Income (Loss) Schedule of Accumulated Other Comprehensive Income (Loss) (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Accumulated Other Comprehensive Income (Loss), Foreign Currency Translation Adjustment [Roll Forward] | ' | ' | ' | ' |
Balance, beginning | $40,222 | ($11,334) | $24,906 | $10,850 |
Pretax (loss) income | -39,329 | 28,514 | -24,013 | 6,330 |
Balance, ending | 893 | 17,180 | 893 | 17,180 |
Accumulated Other Comprehensive Income (Loss), Cumulative Changes in Net Gain (Loss) from Cash Flow Hedges [Roll Forward] | ' | ' | ' | ' |
Balance, beginning | -4,346 | -6,730 | -5,596 | -10,091 |
Pretax (loss) income | -186 | -15,315 | -362 | -14,170 |
Income tax effect | -7 | 5,647 | 39 | 5,305 |
Reclassification of unrealized (gain) loss | -1,554 | -15,956 | -3,647 | -19,771 |
Reclassification of deferred income taxes | -544 | -5,849 | -1,257 | -7,211 |
Balance, ending | -3,529 | -6,105 | -3,529 | -6,105 |
Accumulated Other Comprehensive Income (Loss), Pension and Other Postretirement Benefit Plans [Roll Forward] | ' | ' | ' | ' |
Balance, beginning | 634 | ' | 701 | ' |
Reclassification of unrealized (gain) loss | -39 | ' | -129 | ' |
Income tax effect | 9 | ' | 32 | ' |
Balance, ending | 604 | ' | 604 | ' |
Accumulated Other Comprehensive Income (Loss) [Roll Forward] | ' | ' | ' | ' |
Balance, beginning | 36,510 | -18,064 | 20,011 | 759 |
Pretax (loss) income | -39,515 | 13,199 | -24,375 | -7,840 |
Income tax effect | -7 | 5,647 | 39 | 5,305 |
Reclassification of unrealized (gain) loss | 1,515 | 15,956 | 3,518 | 19,771 |
Reclassification of deferred income taxes | -535 | -5,849 | -1,225 | -7,211 |
Balance, ending | -2,032 | 11,075 | -2,032 | 11,075 |
Other Comprehensive Income Hedge Ineffectiveness Tax | ' | 293 | ' | 460 |
Other Comprehensive Income Hedge Ineffectiveness Tax | ' | ($107) | ' | ($169) |
Accumulated_Other_Comprehensiv3
Accumulated Other Comprehensive Income (Loss) Additional Information (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Reclassification of unrealized loss | ($1,554) | ($15,956) | ($3,647) | ($19,771) |
Interest rate swaps | ' | ' | ' | ' |
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' |
Reclassification of unrealized loss | $1,600 | ($1,500) | $4,600 | ($4,700) |
Segment_and_Geographic_Informa2
Segment and Geographic Information - Additional Information (Details) | 9 Months Ended |
Sep. 30, 2014 | |
Segment Reporting Information | ' |
Number of operating segments | 4 |
Number of reportable segments | 3 |
North America | ' |
Segment Reporting Information | ' |
Number of reportable segments | 1 |
Schedule_of_Financial_Performa
Schedule of Financial Performance by Reportable Segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | $1,721,024 | $1,298,094 | $5,055,933 | $3,745,839 |
Segment EBITDA | 191,554 | 149,320 | 608,102 | 467,357 |
Depreciation and amortization | 31,754 | 22,157 | 90,647 | 61,868 |
North America | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 1,024,967 | 928,307 | 3,080,356 | 2,865,613 |
Segment EBITDA | 131,851 | 108,863 | 415,139 | 363,411 |
Depreciation and amortization | 18,029 | 16,417 | 52,682 | 48,555 |
Europe | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 495,776 | 369,787 | 1,380,663 | 880,226 |
Segment EBITDA | 41,726 | 40,457 | 128,826 | 103,946 |
Depreciation and amortization | 9,411 | 5,740 | 24,868 | 13,313 |
Specialty | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 201,007 | ' | 596,430 | ' |
Segment EBITDA | 17,977 | ' | 64,137 | ' |
Depreciation and amortization | 4,314 | ' | 13,097 | ' |
Eliminations | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | -726 | ' | -1,516 | ' |
Third Party | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 1,721,024 | 1,298,094 | ' | ' |
Third Party | North America | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 1,024,835 | 928,307 | 3,080,090 | 2,865,613 |
Third Party | Europe | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 495,776 | 369,787 | 1,380,663 | 880,226 |
Third Party | Specialty | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 200,413 | ' | 595,180 | ' |
Third Party | Eliminations | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | ' | ' | 0 | ' |
Intersegment | North America | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 132 | ' | 266 | ' |
Intersegment | Specialty | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | 594 | ' | 1,250 | ' |
Intersegment | Eliminations | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Revenue | ($726) | ' | ($1,516) | ' |
Reconciliation_of_Segment_EBIT
Reconciliation of Segment EBITDA to Net Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting [Abstract] | ' | ' | ' | ' |
Segment EBITDA | $191,554 | $149,320 | $608,102 | $467,357 |
Restructuring and acquisition related expenses | 3,594 | 2,206 | 12,816 | 7,391 |
Change in fair value of contingent consideration liabilities | 12 | 712 | -2,000 | 1,765 |
Equity in earnings of unconsolidated subsidiaries | -721 | 0 | -1,199 | 0 |
EBITDA | 187,227 | 146,402 | 596,087 | 458,201 |
Depreciation and amortization | 31,754 | 22,157 | 90,647 | 61,868 |
Interest expense, net | 16,394 | 15,200 | 48,140 | 36,287 |
Loss on debt extinguishment | 0 | 0 | -324 | -2,795 |
Provision for income taxes | 47,564 | 35,600 | 155,926 | 123,492 |
Net income | $91,515 | $73,445 | $301,050 | $233,759 |
Schedule_of_Capital_Expenditur
Schedule of Capital Expenditures by Reportable Segment (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Segment Reporting Information | ' | ' | ' | ' |
Capital Expenditures | $32,860 | $20,975 | $100,191 | $61,126 |
North America | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Capital Expenditures | 20,986 | 14,960 | 61,262 | 48,662 |
Europe | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Capital Expenditures | 8,652 | 6,015 | 32,927 | 12,464 |
Specialty | ' | ' | ' | ' |
Segment Reporting Information | ' | ' | ' | ' |
Capital Expenditures | $3,222 | $0 | $6,002 | $0 |
Schedule_of_Assets_by_Reportab
Schedule of Assets by Reportable Segment (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information | ' | ' |
Receivables, net | $609,434 | $458,094 |
Inventory | 1,341,325 | 1,076,952 |
Property and Equipment, net | 612,292 | 546,651 |
Other unallocated assets | 2,971,527 | 2,437,077 |
Total Assets | 5,534,578 | 4,518,774 |
North America | ' | ' |
Segment Reporting Information | ' | ' |
Receivables, net | 318,575 | 277,395 |
Inventory | 787,884 | 748,167 |
Property and Equipment, net | 449,824 | 447,528 |
Europe | ' | ' |
Segment Reporting Information | ' | ' |
Receivables, net | 235,791 | 180,699 |
Inventory | 389,941 | 328,785 |
Property and Equipment, net | 123,211 | 99,123 |
Specialty | ' | ' |
Segment Reporting Information | ' | ' |
Receivables, net | 55,068 | ' |
Inventory | 163,500 | ' |
Property and Equipment, net | $39,257 | ' |
Schedule_of_Revenue_by_Geograp
Schedule of Revenue by Geographic Area (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' |
Revenue | $1,721,024 | $1,298,094 | $5,055,933 | $3,745,839 |
United States | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' |
Revenue | 1,126,468 | 868,052 | 3,369,636 | 2,672,545 |
United Kingdom | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' |
Revenue | 349,012 | 266,384 | 1,003,889 | 708,089 |
Other countries | ' | ' | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' | ' | ' |
Revenue | $245,544 | $163,658 | $682,408 | $365,205 |
Schedule_of_Tangible_LongLived
Schedule of Tangible Long-Lived Assets by Geographic Area (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Revenues from External Customers and Long-Lived Assets | ' | ' |
Long-lived Assets | $612,292 | $546,651 |
United States | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' |
Long-lived Assets | 456,556 | 418,869 |
United Kingdom | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' |
Long-lived Assets | 92,365 | 77,827 |
Other countries | ' | ' |
Revenues from External Customers and Long-Lived Assets | ' | ' |
Long-lived Assets | $63,371 | $49,955 |
Schedule_of_Revenue_by_Product
Schedule of Revenue by Product Category (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Revenue from External Customers | ' | ' | ' | ' |
Revenue | $1,721,024 | $1,298,094 | $5,055,933 | $3,745,839 |
Aftermarket, other new and refurbished products | ' | ' | ' | ' |
Revenue from External Customers | ' | ' | ' | ' |
Revenue | 1,171,706 | 793,925 | 3,445,376 | 2,199,009 |
Recycled, remanufactured and related products and services | ' | ' | ' | ' |
Revenue from External Customers | ' | ' | ' | ' |
Revenue | 371,632 | 349,411 | 1,108,376 | 1,060,681 |
Other | ' | ' | ' | ' |
Revenue from External Customers | ' | ' | ' | ' |
Revenue | $177,686 | $154,758 | $502,181 | $486,149 |
Condensed_Consolidating_Balanc
Condensed Consolidating Balance Sheets (Details) (USD $) | Sep. 30, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Dec. 31, 2012 |
In Thousands, unless otherwise specified | ||||
Current Assets: | ' | ' | ' | ' |
Cash and equivalents | $244,646 | $150,488 | $107,337 | $59,770 |
Receivables, net | 609,434 | 458,094 | ' | ' |
Intercompany receivables, net | 0 | 0 | ' | ' |
Inventory | 1,341,325 | 1,076,952 | ' | ' |
Deferred income taxes | 73,997 | 63,938 | ' | ' |
Prepaid expenses and other current assets | 76,136 | 50,345 | ' | ' |
Total Current Assets | 2,345,538 | 1,799,817 | ' | ' |
Property and Equipment, net | 612,292 | 546,651 | ' | ' |
Intangible Assets: | ' | ' | ' | ' |
Goodwill | 2,257,153 | 1,937,444 | ' | ' |
Other intangibles, net | 221,049 | 153,739 | ' | ' |
Investment in Subsidiaries | 0 | 0 | ' | ' |
Intercompany Notes Receivable | 0 | 0 | ' | ' |
Other Assets | 98,546 | 81,123 | ' | ' |
Total Assets | 5,534,578 | 4,518,774 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 403,587 | 349,069 | ' | ' |
Intercompany payables, net | 0 | 0 | ' | ' |
Accrued expenses: | ' | ' | ' | ' |
Accrued payroll-related liabilities | 88,082 | 58,695 | ' | ' |
Sales taxes payable | 45,098 | 30,701 | ' | ' |
Other accrued expenses | 127,838 | 109,373 | ' | ' |
Contingent consideration liabilities | 2,288 | 52,465 | ' | ' |
Other current liabilities | 31,587 | 36,115 | ' | ' |
Current portion of long-term obligations | 72,908 | 41,535 | ' | ' |
Total Current Liabilities | 771,388 | 677,953 | ' | ' |
Long-Term Obligations, Excluding Current Portion | 1,825,133 | 1,264,246 | ' | ' |
Intercompany Notes Payable | 0 | 0 | ' | ' |
Deferred Income Taxes | 159,270 | 133,822 | ' | ' |
Other Noncurrent Liabilities | 111,093 | 92,008 | ' | ' |
Stockholders’ Equity | 2,667,694 | 2,350,745 | ' | ' |
Total Liabilities and Stockholders’ Equity | 5,534,578 | 4,518,774 | ' | ' |
Parent Company | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and equivalents | 145,431 | 77,926 | 35,966 | 18,396 |
Receivables, net | 77 | 0 | ' | ' |
Intercompany receivables, net | 6,331 | 2,275 | ' | ' |
Inventory | 0 | 0 | ' | ' |
Deferred income taxes | 3,071 | 3,189 | ' | ' |
Prepaid expenses and other current assets | 10,284 | 7,924 | ' | ' |
Total Current Assets | 165,194 | 91,314 | ' | ' |
Property and Equipment, net | 534 | 668 | ' | ' |
Intangible Assets: | ' | ' | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangibles, net | 0 | 0 | ' | ' |
Investment in Subsidiaries | 2,958,048 | 2,364,586 | ' | ' |
Intercompany Notes Receivable | 619,070 | 959,185 | ' | ' |
Other Assets | 50,433 | 49,218 | ' | ' |
Total Assets | 3,793,279 | 3,464,971 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 501 | 314 | ' | ' |
Intercompany payables, net | 0 | 0 | ' | ' |
Accrued expenses: | ' | ' | ' | ' |
Accrued payroll-related liabilities | 7,054 | 5,236 | ' | ' |
Sales taxes payable | 0 | 0 | ' | ' |
Other accrued expenses | 11,434 | 26,714 | ' | ' |
Contingent consideration liabilities | 0 | 0 | ' | ' |
Other current liabilities | 1,127 | 2,803 | ' | ' |
Current portion of long-term obligations | 55,000 | 24,421 | ' | ' |
Total Current Liabilities | 75,116 | 59,488 | ' | ' |
Long-Term Obligations, Excluding Current Portion | 1,016,429 | 1,016,249 | ' | ' |
Intercompany Notes Payable | 0 | 0 | ' | ' |
Deferred Income Taxes | 0 | 0 | ' | ' |
Other Noncurrent Liabilities | 34,040 | 38,489 | ' | ' |
Stockholders’ Equity | 2,667,694 | 2,350,745 | ' | ' |
Total Liabilities and Stockholders’ Equity | 3,793,279 | 3,464,971 | ' | ' |
Guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and equivalents | 26,855 | 13,693 | 12,218 | 18,253 |
Receivables, net | 223,767 | 126,926 | ' | ' |
Intercompany receivables, net | 0 | 6,923 | ' | ' |
Inventory | 885,665 | 687,164 | ' | ' |
Deferred income taxes | 67,560 | 57,422 | ' | ' |
Prepaid expenses and other current assets | 33,661 | 24,190 | ' | ' |
Total Current Assets | 1,237,508 | 916,318 | ' | ' |
Property and Equipment, net | 457,975 | 419,617 | ' | ' |
Intangible Assets: | ' | ' | ' | ' |
Goodwill | 1,518,384 | 1,248,746 | ' | ' |
Other intangibles, net | 126,522 | 56,069 | ' | ' |
Investment in Subsidiaries | 285,996 | 264,815 | ' | ' |
Intercompany Notes Receivable | 32,207 | 118,740 | ' | ' |
Other Assets | 27,235 | 20,133 | ' | ' |
Total Assets | 3,685,827 | 3,044,438 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 180,877 | 147,708 | ' | ' |
Intercompany payables, net | 13,829 | 0 | ' | ' |
Accrued expenses: | ' | ' | ' | ' |
Accrued payroll-related liabilities | 54,794 | 32,850 | ' | ' |
Sales taxes payable | 6,545 | 5,694 | ' | ' |
Other accrued expenses | 76,371 | 51,183 | ' | ' |
Contingent consideration liabilities | 1,727 | 1,923 | ' | ' |
Other current liabilities | 12,816 | 13,039 | ' | ' |
Current portion of long-term obligations | 4,452 | 3,030 | ' | ' |
Total Current Liabilities | 351,411 | 255,427 | ' | ' |
Long-Term Obligations, Excluding Current Portion | 6,423 | 6,554 | ' | ' |
Intercompany Notes Payable | 558,691 | 611,274 | ' | ' |
Deferred Income Taxes | 137,785 | 110,110 | ' | ' |
Other Noncurrent Liabilities | 63,314 | 46,417 | ' | ' |
Stockholders’ Equity | 2,568,203 | 2,014,656 | ' | ' |
Total Liabilities and Stockholders’ Equity | 3,685,827 | 3,044,438 | ' | ' |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and equivalents | 72,360 | 58,869 | 59,153 | 23,121 |
Receivables, net | 385,590 | 331,168 | ' | ' |
Intercompany receivables, net | 13,829 | 0 | ' | ' |
Inventory | 455,660 | 389,788 | ' | ' |
Deferred income taxes | 3,366 | 3,327 | ' | ' |
Prepaid expenses and other current assets | 32,191 | 18,231 | ' | ' |
Total Current Assets | 962,996 | 801,383 | ' | ' |
Property and Equipment, net | 153,783 | 126,366 | ' | ' |
Intangible Assets: | ' | ' | ' | ' |
Goodwill | 738,769 | 688,698 | ' | ' |
Other intangibles, net | 94,527 | 97,670 | ' | ' |
Investment in Subsidiaries | 0 | 0 | ' | ' |
Intercompany Notes Receivable | 0 | 0 | ' | ' |
Other Assets | 25,963 | 17,241 | ' | ' |
Total Assets | 1,976,038 | 1,731,358 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 222,209 | 201,047 | ' | ' |
Intercompany payables, net | 6,331 | 9,198 | ' | ' |
Accrued expenses: | ' | ' | ' | ' |
Accrued payroll-related liabilities | 26,234 | 20,609 | ' | ' |
Sales taxes payable | 38,553 | 25,007 | ' | ' |
Other accrued expenses | 40,033 | 31,476 | ' | ' |
Contingent consideration liabilities | 561 | 50,542 | ' | ' |
Other current liabilities | 17,644 | 20,273 | ' | ' |
Current portion of long-term obligations | 13,456 | 14,084 | ' | ' |
Total Current Liabilities | 365,021 | 372,236 | ' | ' |
Long-Term Obligations, Excluding Current Portion | 802,281 | 241,443 | ' | ' |
Intercompany Notes Payable | 92,586 | 466,651 | ' | ' |
Deferred Income Taxes | 26,570 | 29,181 | ' | ' |
Other Noncurrent Liabilities | 13,739 | 7,102 | ' | ' |
Stockholders’ Equity | 675,841 | 614,745 | ' | ' |
Total Liabilities and Stockholders’ Equity | 1,976,038 | 1,731,358 | ' | ' |
Consolidation, Eliminations | ' | ' | ' | ' |
Current Assets: | ' | ' | ' | ' |
Cash and equivalents | 0 | 0 | 0 | 0 |
Receivables, net | 0 | 0 | ' | ' |
Intercompany receivables, net | -20,160 | -9,198 | ' | ' |
Inventory | 0 | 0 | ' | ' |
Deferred income taxes | 0 | 0 | ' | ' |
Prepaid expenses and other current assets | 0 | 0 | ' | ' |
Total Current Assets | -20,160 | -9,198 | ' | ' |
Property and Equipment, net | 0 | 0 | ' | ' |
Intangible Assets: | ' | ' | ' | ' |
Goodwill | 0 | 0 | ' | ' |
Other intangibles, net | 0 | 0 | ' | ' |
Investment in Subsidiaries | -3,244,044 | -2,629,401 | ' | ' |
Intercompany Notes Receivable | -651,277 | -1,077,925 | ' | ' |
Other Assets | -5,085 | -5,469 | ' | ' |
Total Assets | -3,920,566 | -3,721,993 | ' | ' |
Current Liabilities: | ' | ' | ' | ' |
Accounts payable | 0 | 0 | ' | ' |
Intercompany payables, net | -20,160 | -9,198 | ' | ' |
Accrued expenses: | ' | ' | ' | ' |
Accrued payroll-related liabilities | 0 | 0 | ' | ' |
Sales taxes payable | 0 | 0 | ' | ' |
Other accrued expenses | 0 | 0 | ' | ' |
Contingent consideration liabilities | 0 | 0 | ' | ' |
Other current liabilities | 0 | 0 | ' | ' |
Current portion of long-term obligations | 0 | 0 | ' | ' |
Total Current Liabilities | -20,160 | -9,198 | ' | ' |
Long-Term Obligations, Excluding Current Portion | 0 | 0 | ' | ' |
Intercompany Notes Payable | -651,277 | -1,077,925 | ' | ' |
Deferred Income Taxes | -5,085 | -5,469 | ' | ' |
Other Noncurrent Liabilities | 0 | 0 | ' | ' |
Stockholders’ Equity | -3,244,044 | -2,629,401 | ' | ' |
Total Liabilities and Stockholders’ Equity | ($3,920,566) | ($3,721,993) | ' | ' |
Condensed_Consolidating_Statem
Condensed Consolidating Statements of Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenue | $1,721,024 | $1,298,094 | $5,055,933 | $3,745,839 |
Cost of goods sold | 1,056,613 | 780,187 | 3,068,579 | 2,216,110 |
Gross margin | 664,411 | 517,907 | 1,987,354 | 1,529,729 |
Facility and warehouse expenses | 133,330 | 108,349 | 387,995 | 311,480 |
Distribution expenses | 148,572 | 109,593 | 432,445 | 320,033 |
Selling, general and administrative expenses | 192,229 | 153,546 | 563,344 | 436,614 |
Restructuring and acquisition related expenses | 3,594 | 2,206 | 12,816 | 7,391 |
Depreciation and amortization | 30,498 | 20,818 | 87,136 | 57,850 |
Operating income | 156,188 | 123,395 | 503,618 | 396,361 |
Other expense (income): | ' | ' | ' | ' |
Interest expense, net | 16,394 | 15,200 | 48,140 | 36,287 |
Intercompany interest (income) expense, net | 0 | 0 | 0 | 0 |
Loss on debt extinguishment | 0 | 0 | 324 | 2,795 |
Change in fair value of contingent consideration liabilities | -12 | -712 | 2,000 | -1,765 |
Other (income) expense, net | -18 | -1,562 | -1,021 | -1,737 |
Total other expense, net | 16,388 | 14,350 | 45,443 | 39,110 |
Income before provision for income taxes | 139,800 | 109,045 | 458,175 | 357,251 |
Provision for income taxes | 47,564 | 35,600 | 155,926 | 123,492 |
Equity in earnings of unconsolidated subsidiaries | -721 | 0 | -1,199 | 0 |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 91,515 | 73,445 | 301,050 | 233,759 |
Parent Company | ' | ' | ' | ' |
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 |
Facility and warehouse expenses | 0 | 0 | 0 | 0 |
Distribution expenses | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 5,178 | 6,813 | 20,188 | 20,130 |
Restructuring and acquisition related expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 50 | 65 | 168 | 187 |
Operating income | -5,228 | -6,878 | -20,356 | -20,317 |
Other expense (income): | ' | ' | ' | ' |
Interest expense, net | 12,338 | 13,335 | 38,583 | 29,589 |
Intercompany interest (income) expense, net | -12,638 | -13,028 | -35,828 | -34,318 |
Loss on debt extinguishment | ' | ' | 324 | 2,795 |
Change in fair value of contingent consideration liabilities | 0 | 0 | 0 | 0 |
Other (income) expense, net | 155 | 45 | 81 | 172 |
Total other expense, net | -145 | 352 | 3,160 | -1,762 |
Income before provision for income taxes | -5,083 | -7,230 | -23,516 | -18,555 |
Provision for income taxes | -1,363 | -2,867 | -8,665 | -7,199 |
Equity in earnings of unconsolidated subsidiaries | 0 | ' | 0 | ' |
Equity in earnings of subsidiaries | 95,235 | 77,808 | 315,901 | 245,115 |
Net income | 91,515 | 73,445 | 301,050 | 233,759 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenue | 1,165,794 | 876,862 | 3,486,098 | 2,698,008 |
Cost of goods sold | 709,985 | 522,176 | 2,107,866 | 1,593,764 |
Gross margin | 455,809 | 354,686 | 1,378,232 | 1,104,244 |
Facility and warehouse expenses | 95,619 | 79,565 | 281,805 | 240,389 |
Distribution expenses | 98,457 | 73,752 | 291,187 | 224,266 |
Selling, general and administrative expenses | 114,926 | 93,549 | 342,038 | 282,364 |
Restructuring and acquisition related expenses | 882 | 411 | 7,366 | 750 |
Depreciation and amortization | 19,592 | 14,014 | 58,556 | 41,568 |
Operating income | 126,333 | 93,395 | 397,280 | 314,907 |
Other expense (income): | ' | ' | ' | ' |
Interest expense, net | 71 | 81 | 186 | 621 |
Intercompany interest (income) expense, net | 6,207 | 5,593 | 16,279 | 16,901 |
Loss on debt extinguishment | ' | ' | 0 | 0 |
Change in fair value of contingent consideration liabilities | -54 | 72 | 2,183 | 936 |
Other (income) expense, net | -1,164 | -912 | -4,542 | -2,380 |
Total other expense, net | 5,168 | 4,690 | 9,740 | 14,206 |
Income before provision for income taxes | 121,165 | 88,705 | 387,540 | 300,701 |
Provision for income taxes | 43,986 | 33,973 | 144,725 | 115,625 |
Equity in earnings of unconsolidated subsidiaries | 20 | ' | 35 | ' |
Equity in earnings of subsidiaries | 6,151 | 5,656 | 24,528 | 15,496 |
Net income | 83,350 | 60,388 | 267,378 | 200,572 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenue | 588,852 | 450,505 | 1,665,247 | 1,133,369 |
Cost of goods sold | 380,250 | 287,284 | 1,056,125 | 707,884 |
Gross margin | 208,602 | 163,221 | 609,122 | 425,485 |
Facility and warehouse expenses | 37,711 | 28,784 | 106,190 | 71,091 |
Distribution expenses | 50,115 | 35,841 | 141,258 | 95,767 |
Selling, general and administrative expenses | 72,125 | 53,184 | 201,118 | 134,120 |
Restructuring and acquisition related expenses | 2,712 | 1,795 | 5,450 | 6,641 |
Depreciation and amortization | 10,856 | 6,739 | 28,412 | 16,095 |
Operating income | 35,083 | 36,878 | 126,694 | 101,771 |
Other expense (income): | ' | ' | ' | ' |
Interest expense, net | 3,985 | 1,784 | 9,371 | 6,077 |
Intercompany interest (income) expense, net | 6,431 | 7,435 | 19,549 | 17,417 |
Loss on debt extinguishment | ' | ' | 0 | 0 |
Change in fair value of contingent consideration liabilities | 42 | -784 | -183 | -2,701 |
Other (income) expense, net | 991 | -695 | 3,440 | 471 |
Total other expense, net | 11,365 | 9,308 | 32,543 | 26,666 |
Income before provision for income taxes | 23,718 | 27,570 | 94,151 | 75,105 |
Provision for income taxes | 4,941 | 4,494 | 19,866 | 15,066 |
Equity in earnings of unconsolidated subsidiaries | -741 | ' | -1,234 | ' |
Equity in earnings of subsidiaries | 0 | 0 | 0 | 0 |
Net income | 18,036 | 23,076 | 73,051 | 60,039 |
Consolidation, Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Revenue | -33,622 | -29,273 | -95,412 | -85,538 |
Cost of goods sold | -33,622 | -29,273 | -95,412 | -85,538 |
Gross margin | 0 | 0 | 0 | 0 |
Facility and warehouse expenses | 0 | 0 | 0 | 0 |
Distribution expenses | 0 | 0 | 0 | 0 |
Selling, general and administrative expenses | 0 | 0 | 0 | 0 |
Restructuring and acquisition related expenses | 0 | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 | 0 |
Operating income | 0 | 0 | 0 | 0 |
Other expense (income): | ' | ' | ' | ' |
Interest expense, net | 0 | 0 | 0 | 0 |
Intercompany interest (income) expense, net | 0 | 0 | 0 | 0 |
Loss on debt extinguishment | ' | ' | 0 | 0 |
Change in fair value of contingent consideration liabilities | 0 | 0 | 0 | 0 |
Other (income) expense, net | 0 | 0 | 0 | 0 |
Total other expense, net | 0 | 0 | 0 | 0 |
Income before provision for income taxes | 0 | 0 | 0 | 0 |
Provision for income taxes | 0 | 0 | 0 | 0 |
Equity in earnings of unconsolidated subsidiaries | 0 | ' | 0 | ' |
Equity in earnings of subsidiaries | -101,386 | -83,464 | -340,429 | -260,611 |
Net income | ($101,386) | ($83,464) | ($340,429) | ($260,611) |
Condensed_Consolidating_Statem1
Condensed Consolidating Statements of Comprehensive Income (Details) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2014 | Sep. 30, 2013 |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | $91,515 | $73,445 | $301,050 | $233,759 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation | -39,329 | 28,514 | -24,013 | 6,330 |
Net change in unrecognized gains/losses on derivative instruments, net of tax | 817 | 625 | 2,067 | 3,986 |
Change in unrealized gain on pension plan, net of tax | 30 | 0 | 97 | 0 |
Total other comprehensive (loss) income | -38,542 | 29,139 | -22,043 | 10,316 |
Total comprehensive income | 52,973 | 102,584 | 279,007 | 244,075 |
Parent Company | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | 91,515 | 73,445 | 301,050 | 233,759 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation | -39,329 | 28,514 | -24,013 | 6,330 |
Net change in unrecognized gains/losses on derivative instruments, net of tax | 817 | 625 | 2,067 | 3,986 |
Change in unrealized gain on pension plan, net of tax | 30 | ' | 97 | ' |
Total other comprehensive (loss) income | -38,542 | 29,139 | -22,043 | 10,316 |
Total comprehensive income | 52,973 | 102,584 | 279,007 | 244,075 |
Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | 83,350 | 60,388 | 267,378 | 200,572 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation | -14,554 | 13,130 | -7,034 | 3,386 |
Net change in unrecognized gains/losses on derivative instruments, net of tax | 0 | 0 | 0 | 0 |
Change in unrealized gain on pension plan, net of tax | 0 | ' | 0 | ' |
Total other comprehensive (loss) income | -14,554 | 13,130 | -7,034 | 3,386 |
Total comprehensive income | 68,796 | 73,518 | 260,344 | 203,958 |
Non-Guarantor Subsidiaries | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | 18,036 | 23,076 | 73,051 | 60,039 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation | -37,922 | 28,104 | -22,610 | 7,107 |
Net change in unrecognized gains/losses on derivative instruments, net of tax | -229 | 127 | -48 | 903 |
Change in unrealized gain on pension plan, net of tax | 30 | ' | 97 | ' |
Total other comprehensive (loss) income | -38,181 | 28,231 | -22,755 | 8,010 |
Total comprehensive income | -20,145 | 51,307 | 50,296 | 68,049 |
Consolidation, Eliminations | ' | ' | ' | ' |
Condensed Financial Statements, Captions [Line Items] | ' | ' | ' | ' |
Net income | -101,386 | -83,464 | -340,429 | -260,611 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation | 52,476 | -41,234 | 29,644 | -10,493 |
Net change in unrecognized gains/losses on derivative instruments, net of tax | 229 | -127 | 48 | -903 |
Change in unrealized gain on pension plan, net of tax | -30 | ' | -97 | ' |
Total other comprehensive (loss) income | 52,735 | -41,361 | 29,789 | -11,396 |
Total comprehensive income | ($48,651) | ($124,825) | ($310,640) | ($272,007) |
Condensed_Consolidating_Statem2
Condensed Consolidating Statements of Cash Flows (Details) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Sep. 30, 2014 | Sep. 30, 2013 |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net cash provided by operating activities | $322,642 | $340,929 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -100,191 | -61,126 |
Proceeds from sales of property and equipment | 3,174 | 1,459 |
Investments in unconsolidated subsidiary | -2,240 | -9,136 |
Investment and intercompany note activity with subsidiaries | 0 | 0 |
Acquisitions, net of cash acquired | -650,614 | -395,974 |
Net cash used in investing activities | -749,871 | -464,777 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of stock options | 6,520 | 13,647 |
Excess tax benefit from stock-based payments | 14,455 | 15,998 |
Proceeds from issuance of senior notes | 0 | 600,000 |
Borrowings under revolving credit facility | 1,299,821 | 399,758 |
Repayments under revolving credit facility | -808,039 | -745,313 |
Borrowings under term loans | 11,250 | 35,000 |
Repayments under term loans | -11,250 | -11,250 |
Borrowings under receivables securitization facility | 80,000 | 41,500 |
Repayments under receivables securitization facility | 0 | -111,500 |
Repayments of other long-term debt | -20,532 | -19,518 |
Payments of other obligations | -41,934 | -32,091 |
Other financing activities, net | -6,881 | -16,912 |
Investment and intercompany note activity with parent | 0 | 0 |
Dividends | 0 | 0 |
Net cash provided by financing activities | 523,410 | 169,319 |
Effect of exchange rate changes on cash and equivalents | -2,023 | 2,096 |
Net increase in cash and equivalents | 94,158 | 47,567 |
Cash and equivalents, beginning of period | 150,488 | 59,770 |
Cash and equivalents, end of period | 244,646 | 107,337 |
Parent Company | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net cash provided by operating activities | 264,870 | 101,136 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -37 | -1 |
Proceeds from sales of property and equipment | 0 | 0 |
Investments in unconsolidated subsidiary | 0 | 0 |
Investment and intercompany note activity with subsidiaries | -197,714 | -418,205 |
Acquisitions, net of cash acquired | 0 | 0 |
Net cash used in investing activities | -197,751 | -418,206 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of stock options | 6,520 | 13,647 |
Excess tax benefit from stock-based payments | 14,455 | 15,998 |
Proceeds from issuance of senior notes | ' | 600,000 |
Borrowings under revolving credit facility | 693,000 | 315,000 |
Repayments under revolving credit facility | -693,000 | -616,000 |
Borrowings under term loans | 11,250 | 35,000 |
Repayments under term loans | -11,250 | -11,250 |
Borrowings under receivables securitization facility | 0 | 0 |
Repayments under receivables securitization facility | ' | 0 |
Repayments of other long-term debt | -1,920 | -925 |
Payments of other obligations | 0 | 0 |
Other financing activities, net | -18,669 | -16,830 |
Investment and intercompany note activity with parent | 0 | 0 |
Dividends | 0 | 0 |
Net cash provided by financing activities | 386 | 334,640 |
Effect of exchange rate changes on cash and equivalents | 0 | 0 |
Net increase in cash and equivalents | 67,505 | 17,570 |
Cash and equivalents, beginning of period | 77,926 | 18,396 |
Cash and equivalents, end of period | 145,431 | 35,966 |
Guarantor Subsidiaries | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net cash provided by operating activities | 361,218 | 195,524 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -59,387 | -40,824 |
Proceeds from sales of property and equipment | 1,218 | 1,032 |
Investments in unconsolidated subsidiary | -600 | 0 |
Investment and intercompany note activity with subsidiaries | -607 | -84,893 |
Acquisitions, net of cash acquired | -520,721 | -21,570 |
Net cash used in investing activities | -580,097 | -146,255 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of stock options | 0 | 0 |
Excess tax benefit from stock-based payments | 0 | 0 |
Proceeds from issuance of senior notes | ' | 0 |
Borrowings under revolving credit facility | 0 | 0 |
Repayments under revolving credit facility | 0 | 0 |
Borrowings under term loans | 0 | 0 |
Repayments under term loans | 0 | 0 |
Borrowings under receivables securitization facility | 0 | 0 |
Repayments under receivables securitization facility | ' | 0 |
Repayments of other long-term debt | -2,104 | -7,983 |
Payments of other obligations | -407 | -473 |
Other financing activities, net | 12,340 | 0 |
Investment and intercompany note activity with parent | -481,951 | -25,095 |
Dividends | -259,653 | -71,943 |
Net cash provided by financing activities | 232,127 | -55,304 |
Effect of exchange rate changes on cash and equivalents | -86 | 0 |
Net increase in cash and equivalents | 13,162 | -6,035 |
Cash and equivalents, beginning of period | 13,693 | 18,253 |
Cash and equivalents, end of period | 26,855 | 12,218 |
Non-Guarantor Subsidiaries | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net cash provided by operating activities | -43,793 | 116,212 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | -40,767 | -20,301 |
Proceeds from sales of property and equipment | 1,956 | 427 |
Investments in unconsolidated subsidiary | -1,640 | -9,136 |
Investment and intercompany note activity with subsidiaries | 0 | 0 |
Acquisitions, net of cash acquired | -129,893 | -374,404 |
Net cash used in investing activities | -170,344 | -403,414 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of stock options | 0 | 0 |
Excess tax benefit from stock-based payments | 0 | 0 |
Proceeds from issuance of senior notes | ' | 0 |
Borrowings under revolving credit facility | 606,821 | 84,758 |
Repayments under revolving credit facility | -115,039 | -129,313 |
Borrowings under term loans | 0 | 0 |
Repayments under term loans | 0 | 0 |
Borrowings under receivables securitization facility | 80,000 | 41,500 |
Repayments under receivables securitization facility | ' | -111,500 |
Repayments of other long-term debt | -16,508 | -10,610 |
Payments of other obligations | -41,527 | -31,618 |
Other financing activities, net | -552 | -82 |
Investment and intercompany note activity with parent | 283,630 | -478,003 |
Dividends | 0 | 0 |
Net cash provided by financing activities | 229,565 | 321,138 |
Effect of exchange rate changes on cash and equivalents | -1,937 | 2,096 |
Net increase in cash and equivalents | 13,491 | 36,032 |
Cash and equivalents, beginning of period | 58,869 | 23,121 |
Cash and equivalents, end of period | 72,360 | 59,153 |
Consolidation, Eliminations | ' | ' |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' |
Net cash provided by operating activities | -259,653 | -71,943 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' |
Purchases of property and equipment | 0 | 0 |
Proceeds from sales of property and equipment | 0 | 0 |
Investments in unconsolidated subsidiary | 0 | 0 |
Investment and intercompany note activity with subsidiaries | 198,321 | 503,098 |
Acquisitions, net of cash acquired | 0 | 0 |
Net cash used in investing activities | 198,321 | 503,098 |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' |
Proceeds from exercise of stock options | 0 | 0 |
Excess tax benefit from stock-based payments | 0 | 0 |
Proceeds from issuance of senior notes | ' | 0 |
Borrowings under revolving credit facility | 0 | 0 |
Repayments under revolving credit facility | 0 | 0 |
Borrowings under term loans | 0 | 0 |
Repayments under term loans | 0 | 0 |
Borrowings under receivables securitization facility | 0 | 0 |
Repayments under receivables securitization facility | ' | 0 |
Repayments of other long-term debt | 0 | 0 |
Payments of other obligations | 0 | 0 |
Other financing activities, net | 0 | 0 |
Investment and intercompany note activity with parent | 198,321 | 503,098 |
Dividends | 259,653 | 71,943 |
Net cash provided by financing activities | 61,332 | -431,155 |
Effect of exchange rate changes on cash and equivalents | 0 | 0 |
Net increase in cash and equivalents | 0 | 0 |
Cash and equivalents, beginning of period | 0 | 0 |
Cash and equivalents, end of period | $0 | $0 |