Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2021 | Feb. 18, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Transition Report | false | ||
Entity File Number | 000-50404 | ||
Entity Registrant Name | LKQ CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 36-4215970 | ||
Entity Address, Address Line One | 500 West Madison Street, Suite 2800, | ||
Entity Address, State or Province | IL | ||
Entity Address, Postal Zip Code | 60661 | ||
City Area Code | 312 | ||
Local Phone Number | 621-1950 | ||
Title of 12(b) Security | Common Stock, par value $.01 per share | ||
Trading Symbol | LKQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 14.5 | ||
Entity Common Stock, Shares Outstanding | 285,014,137 | ||
Entity Central Index Key | 0001065696 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --12-31 | ||
Amendment Flag | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Address, City or Town | Chicago | ||
Security Exchange Name | NASDAQ |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2021 | |
Auditor [Line Items] | |
Auditor Location | Chicago, Illinois |
Auditor Firm ID | 34 |
Auditor Name | DELOITTE & TOUCHE LLP |
Consolidated Statements of Inco
Consolidated Statements of Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue | $ 13,088,504 | $ 11,628,830 | $ 12,506,109 |
Income from continuing operations | 1,091,476 | 640,509 | 543,415 |
Less: net income attributable to continuing noncontrolling interest | 1,251 | 1,888 | 2,800 |
Revenue | 13,088,504 | 11,628,830 | 12,506,109 |
Cost of goods sold | 7,766,069 | 7,035,559 | 7,654,315 |
Gross margin | 5,322,435 | 4,593,271 | 4,851,794 |
Selling, general and administrative expenses | 3,567,732 | 3,266,065 | 3,580,300 |
Restructuring and acquisition related expenses | 20,311 | 66,163 | 36,979 |
Loss on disposal of businesses and impairment of net assets held for sale | 28 | 3,174 | 47,102 |
Depreciation and amortization | 259,992 | 272,292 | 290,770 |
Operating income | 1,474,372 | 985,577 | 896,643 |
Other expense (income): | |||
Interest Expense | 72,078 | 103,784 | 138,504 |
Loss (gain) on debt extinguishment | (23,564) | (12,751) | 128 |
Interest income and other income, net | (20,400) | (15,953) | (32,755) |
Total other expense, net | 75,242 | 100,582 | 105,621 |
Income from continuing operations before provision for income taxes | 1,399,130 | 884,995 | 791,022 |
Provision for income taxes | 330,591 | 249,498 | 215,330 |
Equity in earnings (losses) of unconsolidated subsidiaries | 22,937 | 5,012 | (32,277) |
Income from continuing operations | 1,091,476 | 640,509 | 543,415 |
Net income (loss) from discontinued operations | 648 | (95) | 1,619 |
Net income | 1,092,124 | 640,414 | 545,034 |
Less: net income attributable to continuing noncontrolling interest | 1,251 | 1,888 | 2,800 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 103 | 974 |
Net income attributable to LKQ stockholders | $ 1,090,873 | $ 638,423 | $ 541,260 |
Basic earnings per share: (1) | |||
Income from continuing operations | $ 3.68 | $ 2.10 | $ 1.75 |
Net income (loss) from discontinued operations | 0 | 0 | 0.01 |
Net income | 3.68 | 2.10 | 1.76 |
Less: net income attributable to continuing noncontrolling interest | 0 | 0.01 | 0.01 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | 0 |
Net income attributable to LKQ stockholders | 3.68 | 2.10 | 1.75 |
Diluted earnings per share: (1) | |||
Income from continuing operations | 3.67 | 2.10 | 1.75 |
Net income (loss) from discontinued operations | 0 | 0 | 0.01 |
Net income | 3.67 | 2.10 | 1.75 |
Less: net income attributable to continuing noncontrolling interest | 0 | 0.01 | 0.01 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 0 | 0 |
Net income attributable to LKQ stockholders | $ 3.66 | $ 2.09 | $ 1.74 |
Retained Earnings | |||
Other expense (income): | |||
Net income | $ 1,090,873 | $ 638,423 | $ 541,260 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Net income | $ 1,092,124 | $ 640,414 | $ 545,034 |
Less: net income attributable to continuing noncontrolling interest | 1,251 | 1,888 | 2,800 |
Less: net income attributable to discontinued noncontrolling interest | 0 | 103 | 974 |
Net income attributable to LKQ stockholders | 1,090,873 | 638,423 | 541,260 |
Other comprehensive income (loss): | |||
Foreign currency translation, net of tax | (63,465) | 113,767 | 6,704 |
Net change in unrealized gains/losses on cash flow hedges, net of tax | 962 | (6,326) | (9,016) |
Net change in unrealized gains/losses on pension plans, net of tax | 8,811 | (1,033) | (23,859) |
Other comprehensive (loss) income from unconsolidated subsidiaries | (429) | (4,532) | 236 |
Other comprehensive (loss) income | (54,121) | 101,876 | (25,935) |
Comprehensive income | 1,038,003 | 742,290 | 519,099 |
Less: comprehensive income attributable to continuing noncontrolling interest | 1,251 | 1,888 | 2,800 |
Less: comprehensive income attributable to discontinued noncontrolling interest | 0 | 103 | 974 |
Comprehensive income attributable to LKQ stockholders | $ 1,036,752 | $ 740,299 | $ 515,325 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 274,134 | $ 312,154 |
Receivables, net | 1,072,772 | 1,073,389 |
Inventories | 2,610,515 | 2,414,612 |
Prepaid expenses and other current assets | 296,947 | 233,877 |
Total current assets | 4,254,368 | 4,034,032 |
Property, plant and equipment, net | 1,298,740 | 1,248,703 |
Operating lease assets, net | 1,361,324 | 1,353,124 |
Intangible assets: | ||
Goodwill | 4,539,896 | 4,591,569 |
Other intangibles, net | 746,149 | 814,219 |
Equity method investments | 180,705 | 155,224 |
Other noncurrent assets | 224,972 | 163,662 |
Total assets | 12,606,154 | 12,360,533 |
Current liabilities: | ||
Accounts payable | 1,176,015 | 932,406 |
Accrued expenses: | ||
Accrued payroll-related liabilities | 260,827 | 208,718 |
Refund liability | 106,800 | 102,148 |
Other accrued expenses | 271,406 | 334,890 |
Other current liabilities | 112,538 | 130,021 |
Current portion of operating lease liabilities | 203,108 | 221,811 |
Current portion of long-term obligations | 34,752 | 58,497 |
Total current liabilities | 2,165,446 | 1,988,491 |
Long-term operating lease liabilities, excluding current portion | 1,209,218 | 1,197,963 |
Long-term obligations, excluding current portion | 2,777,160 | 2,812,641 |
Deferred income taxes | 279,296 | 291,421 |
Other noncurrent liabilities | 364,373 | 374,640 |
Commitments and contingencies | ||
Redeemable noncontrolling interest | 24,077 | 24,077 |
Stockholders' equity: | ||
Common stock, $0.01 par value, 1,000,000 shares authorized, 321,578 shares issued and 287,015 shares outstanding at December 31, 2021; 320,868 shares issued and 303,553 shares outstanding at December 31, 2020 | 3,215 | 3,208 |
Additional paid-in capital | 1,474,093 | 1,444,584 |
Retained earnings | 5,793,515 | 4,776,040 |
Accumulated other comprehensive loss | (153,130) | (99,009) |
Treasury stock, at cost; 34,563 shares at December 31, 2021 and 17,315 shares at December 31, 2020 | (1,345,949) | (469,105) |
Total Company stockholders' equity | 5,771,744 | 5,655,718 |
Noncontrolling interest | 14,840 | 15,582 |
Total stockholders' equity | 5,786,584 | 5,671,300 |
Total liabilities and stockholders' equity | $ 12,606,154 | $ 12,360,533 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
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 | 321,577,788 | 320,867,602 |
Common stock, shares outstanding | 287,015,364 | 303,553,000 |
Treasury Stock, Common, Shares | 34,562,424 | 17,314,602 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows $ in Thousands, € in Millions | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 1,092,124 | $ 640,414 | $ 545,034 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 284,003 | 299,497 | 314,406 |
Impairment of equity method investments | 0 | 0 | 41,057 |
Loss on disposal of businesses and impairment of net assets held for sale | 28 | 3,174 | 47,102 |
Stock-based compensation expense | 33,736 | 29,078 | 27,695 |
Loss (gain) on debt extinguishment | 23,564 | 12,751 | (128) |
Deferred income taxes | (27,079) | (33,827) | 7,109 |
Other | (36,610) | (3,934) | (16,183) |
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||
Receivables, net | (16,234) | 93,588 | 26,419 |
Inventories | (234,514) | 433,072 | 15,460 |
Prepaid income taxes/income taxes payable | (65,051) | 34,945 | 25,776 |
Accounts payable | 283,185 | (64,032) | 3,712 |
Other operating assets and liabilities | 29,895 | (856) | 26,574 |
Net cash provided by operating activities | 1,367,047 | 1,443,870 | 1,064,033 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Purchases of property, plant and equipment | (293,466) | (172,695) | (265,730) |
Proceeds from disposals of property, plant and equipment | 19,565 | 16,750 | 16,045 |
Acquisitions, net of cash acquired | (123,898) | (7,363) | (27,296) |
Other investing activities, net | (20,959) | (2,579) | 12,128 |
Net cash used in investing activities | (418,758) | (165,887) | (264,853) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Early-redemption premium | (16,014) | (9,498) | 0 |
Borrowings under revolving credit facilities | 5,034,867 | 841,485 | 605,708 |
Repayments under revolving credit facilities | (3,716,955) | (1,472,920) | (734,471) |
Repayments under term loans | (323,750) | (17,500) | (8,750) |
Borrowings under receivables securitization facility | 0 | 111,300 | 36,600 |
Repayments under receivables securitization facility | 0 | (111,300) | (146,600) |
Repayments of other debt, net | (25,587) | (115,609) | (53,045) |
Payments of Dividends | (72,873) | 0 | 0 |
Purchase of treasury stock | (876,844) | (117,292) | (291,813) |
Other financing activities, net | 15,961 | 21,217 | 8,298 |
Net cash used in financing activities | (985,135) | (1,512,551) | (600,669) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (1,174) | 11,865 | (904) |
Cash, cash equivalents and restricted cash of continuing operations, beginning of period | 312,154 | 528,387 | 337,250 |
Add: Cash, cash equivalents and restricted cash of discontinued operations, beginning of period | 0 | (6,470) | 0 |
Cash, cash equivalents and restricted cash of continuing and discontinued operations, beginning of period | 312,154 | 534,857 | 337,250 |
Less: Cash and cash equivalents of discontinued operations, end of period | 0 | 0 | (6,470) |
Cash, cash equivalents and restricted cash of continuing and discontinued operations, end of period | 274,134 | 312,154 | 534,857 |
Reconciliation of cash, cash equivalents and restricted cash: | |||
Cash and cash equivalents | 274,134 | 312,154 | 523,020 |
Restricted cash | 0 | 0 | 5,367 |
Cash, cash equivalents and restricted cash, end of period | 274,134 | 312,154 | 528,387 |
Supplemental disclosure of cash paid for: | |||
Income taxes, net of refunds | 422,739 | 248,083 | 181,306 |
Interest | 75,632 | 106,866 | 143,121 |
Supplemental disclosure of noncash investing and financing activities: | |||
Noncash property, plant and equipment and software intangible additions in accounts payable and other accrued expenses | 14,173 | 18,841 | 10,154 |
Notes payable and other financing obligations, including notes issued, debt assumed and settlement of pre-existing balances in connection with business acquisitions and disposals | 6,892 | 4,316 | 47,887 |
Notes receivable and contingent consideration receivable acquired in connection with disposal of businesses | 0 | 8,990 | 0 |
Trade and note receivables forgiven and assets held for sale sold with purchase of noncontrolling interest | 0 | 6,079 | 0 |
Notes issued in connection with purchase of noncontrolling interest | 0 | 0 | 14,196 |
Contingent consideration liabilities | 14,758 | 3,045 | 6,627 |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | (38,020) | (222,703) | 197,607 |
Payments for (Proceeds from) Hedge, Financing Activities | (88,743) | 0 | 0 |
Euro Notes 2026 | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of Euro Notes (2026) | (883,275) | 0 | 0 |
Supplemental disclosure of noncash investing and financing activities: | |||
Long-term Debt, Fair Value | 939,000 | ||
US Notes (2023) [Member] | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Repayment of Euro Notes (2026) | $ (600,000) | ||
Repayment of U.S. Notes (2023) | $ 0 | $ 0 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Treasury Stock, Common [Member] | Additional Paid-in Capital [Member] | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Noncontrolling Interest [Member] |
Treasury Stock, Value | (2,272) | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Beginning Balance at Dec. 31, 2018 | $ 4,838,752 | $ 3,184 | $ (60,000) | $ 1,415,188 | $ 3,598,876 | $ (174,950) | $ 56,454 |
Shares, Issued, Beginning Balance at Dec. 31, 2018 | 318,418 | ||||||
Net income | (545,034) | (541,260) | (3,774) | ||||
Other comprehensive loss | (25,935) | (25,935) | |||||
Purchase of treasury stock | (10,924) | ||||||
Purchase of treasury stock | (291,813) | $ (291,813) | |||||
Vesting of restricted stock units, net of shares withheld for employee tax | 719 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | (2,084) | $ 7 | (2,091) | ||||
Stock-based compensation expense | 27,695 | 27,695 | |||||
Exercise of stock options | 927 | ||||||
Exercise of stock options | 9,055 | $ 9 | 9,046 | ||||
Tax withholdings related to net share settlements of stock-based compensation awards | (137) | ||||||
Tax withholdings related to net share settlements of stock-based compensation awards | (4,495) | $ (1) | (4,494) | ||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | (8,474) | (8,474) | |||||
Acquired noncontrolling interest | 10,365 | 10,365 | |||||
Purchase of noncontrolling interests (see Note 3) | 49,520 | 27,105 | 22,415 | ||||
Shares, Issued, Ending Balance at Dec. 31, 2019 | 319,927 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2019 | 5,048,580 | $ 3,199 | $ (351,813) | 1,418,239 | 4,140,136 | (200,885) | 39,704 |
Treasury Stock, Value | (13,196) | ||||||
Net income | (640,414) | (638,423) | (1,991) | ||||
Other comprehensive loss | 101,876 | 101,876 | |||||
Purchase of treasury stock | (4,119) | ||||||
Purchase of treasury stock | (117,292) | $ (117,292) | |||||
Vesting of restricted stock units, net of shares withheld for employee tax | 829 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | (3,055) | $ 8 | (3,063) | ||||
Stock-based compensation expense | 29,078 | 29,078 | |||||
Exercise of stock options | 112 | ||||||
Exercise of stock options | 1,467 | $ 1 | 1,466 | ||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | (3,757) | (3,757) | |||||
Adoption of ASU 2016-13 | (2,519) | (2,519) | |||||
Disposition of subsidiary with noncontrolling interests | (11,404) | (11,404) | |||||
Purchase of noncontrolling Interests | (12,088) | (1,136) | (10,952) | ||||
Shares, Issued, Ending Balance at Dec. 31, 2020 | 320,868 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2020 | 5,671,300 | $ 3,208 | $ (469,105) | 1,444,584 | 4,776,040 | (99,009) | 15,582 |
Treasury Stock, Value | (17,315) | ||||||
Net income | (1,092,124) | (1,090,873) | (1,251) | ||||
Other comprehensive loss | (54,121) | (54,121) | |||||
Purchase of treasury stock | (17,248) | ||||||
Purchase of treasury stock | (876,844) | $ (876,844) | |||||
Vesting of restricted stock units, net of shares withheld for employee tax | 710 | ||||||
Vesting of restricted stock units, net of shares withheld for employee tax | (4,220) | $ 7 | (4,227) | ||||
Stock-based compensation expense | 33,736 | 33,736 | |||||
Dividends declared to LKQ stockholders ($0.25 per share) | (73,398) | (73,398) | |||||
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder | (1,576) | (1,576) | |||||
Disposition of subsidiary with noncontrolling interests | (222) | (222) | |||||
Foreign currency translation adjustment on noncontrolling interest | (195) | (195) | |||||
Shares, Issued, Ending Balance at Dec. 31, 2021 | 321,578 | ||||||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Ending Balance at Dec. 31, 2021 | $ 5,786,584 | $ 3,215 | $ (1,345,949) | $ 1,474,093 | $ 5,793,515 | $ (153,130) | $ 14,840 |
Treasury Stock, Value | (34,563) |
Business
Business | 12 Months Ended |
Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Business Description of Business LKQ Corporation, a Delaware 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 are a global distributor of vehicle products, including replacement parts, components, and systems used in the repair and maintenance of vehicles, and specialty vehicle aftermarket products and accessories designed to improve the performance, functionality and appearance of vehicles. We operate in the United States, Canada, Germany, the United Kingdom, the Benelux region (Belgium, Netherlands, and Luxembourg), Italy, Czech Republic, Austria, Slovakia, Poland, and various other European countries. We are organized into four operating segments: Wholesale - North America, Europe, Specialty, and Self Service. We aggregate our Wholesale - North America and Self Service operating segments into one reportable segment, North America, resulting in three reportable segments: North America, Europe and Specialty. Basis of Presentation The Consolidated Financial Statements have been prepared in conformity with US GAAP and the rules and regulations of the U.S. Securities and Exchange Commission ("SEC"). |
Discontinued Operations (Notes)
Discontinued Operations (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Discontinued Operations [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Discontinued Operations Czech Republic On May 30, 2018, we acquired Stahlgruber, a leading European wholesale distributor of aftermarket spare parts for passenger cars, tools, capital equipment and accessories with operations in Germany, Austria, Italy, Slovenia, and Croatia, with further sales to Switzerland. Prior to closing, on May 3, 2018, the European Commission cleared the acquisition of Stahlgruber for the entire European Union, except with respect to the wholesale automotive parts business in the Czech Republic. The acquisition of Stahlgruber’s Czech Republic wholesale business was referred to the Czech Republic competition authority for review. On May 10, 2019, the Czech Republic competition authority approved our acquisition of Stahlgruber’s Czech Republic wholesale business subject to the requirement that it divest certain of the acquired locations. We acquired Stahlgruber’s Czech Republic wholesale business on May 29, 2019 and decided to divest all of the acquired locations. We immediately classified the business as discontinued operations because the business was never integrated into our Europe segment. We completed the sale of Stahlgruber's Czech Republic business on February 28, 2020, resulting in an immaterial loss on sale (presented in Net income (loss) from discontinued operations in the Consolidated Statements of Income). As part of the transaction, we purchased the 48.2% noncontrolling interest from the minority shareholder for a purchase price of €8 million, which included the issuance of €4 million of notes payable, and then immediately thereafter sold 100% of the business for a purchase price of €14 million, which included €7 million of notes receivable. This transaction resulted in a disposition of noncontrolling interest of $11 million. From January 1, 2020 through the date of sale, we recorded an immaterial amount of net income (excluding the loss on sale) from discontinued operations related to the business, of which an immaterial amount was attributable to the noncontrolling interest. Glass Manufacturing Business On March 1, 2017, LKQ completed the sale of the glass manufacturing business PGW to a subsidiary of Vitro S.A.B. de C.V. ("Vitro"). In connection with the sale, LKQ and Vitro entered into a twelve month Transition Services Agreement commencing on the transaction date with two six-month renewal periods, a three-year Purchase and Supply Agreement, and an Intellectual Property Agreement. The Purchase and Supply Agreement expired in the first quarter of 2020, while the Intellectual Property Agreement has a perpetual term; as of December 31, 2019, the Transition Services Agreement had expired. Pursuant to the Purchase and Supply Agreement, our aftermarket automotive glass distribution business agreed to source various products from Vitro's glass manufacturing business annually for a three-year period beginning on March 1, 2017. All purchases from Vitro, including those outside of the Purchase and Supply Agreement, for the two months ended February 29, 2020 and the year ended December 31, 2019, were $4 million and $30 million, respectively. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of LKQ Corporation and its subsidiaries. All intercompany transactions and accounts have been eliminated. Use of Estimates The preparation of the Consolidated Financial Statements in accordance with US GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reported periods. We base our estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances including management’s current assumptions with respect to implications of the COVID-19 pandemic, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results and outcomes could differ from those estimates. Revenue Recognition See Note 4, "Revenue Recognition" for our accounting policies related to revenue. Cost of Goods Sold Cost of goods sold includes: the price we pay for inventory, net of vendor discounts, rebates or other incentives; inbound freight and other transportation costs to bring inventory into our facilities; and overhead costs related to purchasing, warehousing and transporting our products from our distribution warehouses to our selling locations. For our salvage, remanufactured, and refurbished products, cost of goods sold also includes direct and indirect labor, equipment costs, depreciation, and other overhead to transform inventory into finished products suitable for sale. Cost of goods sold also includes expenses for service-type warranties and for assurance-type warranty programs. See Note 4, "Revenue Recognition" for additional information related to our warranty programs. Selling, General and Administrative Expenses Selling, general and administrative expenses include: personnel costs for employees in selling, general and administrative functions; costs to operate branch locations, corporate offices and back office support centers; costs to transport products from facilities to our customers; and other selling, general and administrative expenses, such as professional fees, supplies, and advertising expenses. The costs included in Selling, general and administrative expenses do not relate to inventory processing or conversion activities, and, as such, are classified below the gross margin line in the Consolidated Statements of Income. Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand, operating accounts, and deposits readily convertible to known amounts of cash. Restricted cash includes cash for which our ability to withdraw funds at any time is contractually limited. As of December 31, 2021 and 2020 we had no restricted cash balance in Other noncurrent assets on the Consolidated Balance Sheets. Allowance for Credit Losses Receivables, net are reported net of an allowance for credit losses. During the first quarter of 2020, we adopted ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement o f Credit Losses on Financial Instruments" ("ASU 2016-13"). Prior to the adoption of ASU 2016-13, Receivables, net were reported net of an allowance for doubtful accounts. Management evaluates the aging of customer receivable balances, the financial condition of our customers, historical trends, and macroeconomic factors to estimate the amount of customer receivables that may not be collected in the future and records a provision it believes is appropriate. Our reserve for expected lifetime credit losses was $53 million and $70 million at December 31, 2021 and 2020, respectively. The provision for credit losses was a benefit of $5 million, and expense of $25 million and $12 million for the years ended December 31, 2021, 2020 and 2019, respectivel y. The benefit in the provision for credit losses for the year ended December 31, 2021 is attributable primarily to the recovery of the global economy from the effects of the COVID-19 pandemic. A roll-forward of our allowance for credit losses is as follows (in thousands): Allowance for Credit Losses Balance as of January 1, 2020 $ 52,685 Adjustment for adoption of new standard 2,519 Provision for credit losses 24,686 Write-offs (14,024) Impact of foreign currency 4,065 Balance as of December 31, 2020 69,931 Provision for credit losses (4,798) Write-offs (8,376) Impact of foreign currency (3,267) Balance as of December 31, 2021 $ 53,490 Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. We control our exposure to credit risk associated with these instruments by (i) placing cash and cash equivalents with several major financial institutions; (ii) holding high-quality financial instruments; and (iii) maintaining strict policies over credit extension that include credit evaluations, credit limits and monitoring procedures. In addition, our overall credit risk with respect to accounts receivable is limited to some extent because our customer base is composed of a large number of geographically diverse customers. Inventories Our inventory is classified into the following categories: (i) aftermarket and refurbished products, (ii) salvage and remanufactured products, and (iii) manufactured products. An aftermarket product is a new vehicle product manufactured by a company other than the original equipment manufacturer. For the aftermarket products, excluding aftermarket automotive glass products, cost is established based on the average price paid for parts; for the aftermarket automotive glass products, cost is established using the first-in first-out method. Inventory cost for aftermarket products includes expenses incurred for freight in and overhead costs; for items purchased from foreign companies, import fees and duties and transportation insurance are also included. Refurbished products are parts that require cosmetic repairs, such as wheels, bumper covers and lights; LKQ will apply new parts, products or materials to these parts in order to produce the finished product. Refurbished inventory cost is based upon the average price we pay for cores, which are recycled automotive parts that are not suitable for sale as a replacement part without further processing. The cost of refurbished inventory also includes expenses incurred for freight in, labor and other overhead costs. A salvage product is a recycled vehicle part suitable for sale as a replacement part. Cost is established based upon the price we pay for a vehicle, including auction, storage and towing fees, as well as expenditures for buying and dismantling the vehicle. Inventory carrying value is determined using the average cost to sales percentage at each of our facilities and applying that percentage to the facility's inventory at expected selling prices, the assessment of which incorporates the sales probability based on a part's number of days in stock and historical demand. The average cost to sales percentage is derived from each facility's historical profitability for salvage vehicles. Remanufactured products are used parts that have been inspected, rebuilt, or reconditioned to restore functionality and performance, such as remanufactured engines and transmissions. Remanufactured inventory cost is based upon the price paid for cores and expenses incurred for freight in, direct manufacturing costs and other overhead costs. A manufactured product is a new vehicle product. Manufactured product inventory can be a raw material, work-in-process or finished good. Cost is established using the first-in first-out method. For all inventory, carrying value is recorded at the lower of cost or net realizable value. Net realizable value can be influenced by current anticipated demand. If actual demand is lower than our estimates, additional reductions to inventory carrying value would be necessary in the period such determination is made. Inventories consist of the following (in thousands): December 31, 2021 2020 Aftermarket and refurbished products $ 2,167,732 $ 2,025,002 Salvage and remanufactured products 405,776 368,815 Manufactured products 37,007 20,795 Total inventories $ 2,610,515 $ 2,414,612 Aftermarket and refurbished products and salvage and remanufactured products are primarily composed of finished goods. As of December 31, 2021, manufactured products inventory was composed of $27 million of raw materials, $4 million of work in process, and $5 million of finished goods. As of December 31, 2020, manufactured products inventory was composed of $16 million of raw materials, $3 million of work in process, and $2 million of finished goods. Property, Plant and Equipment Property, plant and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements that extend the useful life of the related asset are capitalized. As property, plant and equipment are sold or retired, the applicable cost and accumulated depreciation are removed from the accounts and any resulting gain or loss thereon is recognized. Construction in progress consists primarily of building and land improvements at our existing facilities. Depreciation is calculated using the straight-line method over the estimated useful lives or, in the case of leasehold improvements, the term of the related lease and reasonably assured renewal periods, if shorter. The estimated useful lives are as follows: Useful Life Land improvements 10 - 20 years Buildings and improvements 20 - 40 years Machinery and equipment 3 - 20 years Computer equipment and software 3 - 10 years Vehicles and trailers 3 - 10 years Furniture and fixtures 5 - 7 years Leasehold improvements 1 - 20 years Property, plant and equipment consists of the following (in thousands): December 31, 2021 2020 Land and improvements $ 204,311 $ 200,955 Buildings and improvements 415,473 415,810 Machinery and equipment 738,962 707,674 Computer equipment and software 114,573 121,859 Vehicles and trailers 144,924 149,922 Furniture and fixtures 57,755 57,082 Leasehold improvements 349,980 314,567 Finance lease assets 101,026 99,061 2,127,004 2,066,930 Less—Accumulated depreciation (987,481) (895,149) Construction in progress 159,217 76,922 Total property, plant and equipment, net $ 1,298,740 $ 1,248,703 Depreciation expense associated with refurbishing, remanufacturing, manufacturing and furnace operations as well as distribution centers are recorded in Cost of goods sold in the Consolidated Statements of Income. Depreciation expense resulting from restructuring programs is recorded in Restructuring and acquisition related expenses. All other depreciation expense is reported in Depreciation and amortization. Total depreciation expense for the years ended December 31, 2021, 2020, and 2019 was $180 million , $180 million, and $174 million, respectively. Intangible Assets Intangible assets consist primarily of goodwill (the cost of purchased businesses in excess of the fair value of the identifiable net assets acquired) and other specifically identifiable intangible assets, such as trade names, trademarks, customer and supplier relationships, software and other technology related assets, and covenants not to compete. Goodwill is tested for impairment at least annually. We performed annual impairment tests during the fourth quarters of 2021, 2020 and 2019. Goodwill impairment testing may also be performed on an interim basis when events or circumstances arise that may lead to impairment. The fair value estimates of our reporting units were established using weightings of the results of a discounted cash flow methodology and a comparative market multiples approach. Based on the annual goodwill impairment test performed in the fourth quarter of 2021, we determined no impairment existed as all of the reporting units had a fair value estimate which exceeded the carrying value by at least 70% . The changes in the carrying amount of goodwill by reportable segment are as follows (in thousands): North America Europe Specialty Total Balance as of January 1, 2020 $ 1,718,044 $ 2,280,901 $ 407,590 $ 4,406,535 Business acquisitions and adjustments to previously recorded goodwill (123) 419 5,291 5,587 Exchange rate effects 2,346 176,915 186 179,447 Balance as of December 31, 2020 $ 1,720,267 $ 2,458,235 $ 413,067 $ 4,591,569 Business acquisitions and adjustments to previously recorded goodwill 23,410 17,969 43,313 84,692 Reclassified to net assets held for sale — (269) — (269) Disposal of business — (479) — (479) Exchange rate effects 893 (136,353) (157) (135,617) Balance as of December 31, 2021 $ 1,744,570 $ 2,339,103 $ 456,223 $ 4,539,896 Accumulated impairment losses as of December 31, 2021 $ (33,244) $ — $ — $ (33,244) The components of other intangibles, net are as follows (in thousands): December 31, 2021 December 31, 2020 Intangible assets subject to amortization $ 664,849 $ 732,919 Indefinite-lived intangible assets Trademarks 81,300 81,300 Total $ 746,149 $ 814,219 The components of intangible assets subject to amortization are as follows (in thousands): December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Trade names and trademarks $ 514,231 $ (174,785) $ 339,446 $ 519,577 $ (152,668) $ 366,909 Customer and supplier relationships 603,621 (424,577) 179,044 617,952 (405,237) 212,715 Software and other technology related assets 345,122 (199,083) 146,039 326,988 (174,513) 152,475 Covenants not to compete 12,950 (12,630) 320 13,700 (12,880) 820 Total $ 1,475,924 $ (811,075) $ 664,849 $ 1,478,217 $ (745,298) $ 732,919 Estimated useful lives for the finite-lived intangible assets are as follows: Method of Amortization Useful Life Trade names and trademarks Straight-line 4-30 years Customer and supplier relationships Accelerated 3-20 years Software and other technology related assets Straight-line 3-15 years Covenants not to compete Straight-line 2-5 years Amortization expense for intangibles was $104 million, $119 million, and $140 million during the years ended December 31, 2021, 2020, and 2019, respectively. Estimated amortization expense for each of the five years in the period ending December 31, 2026 is $97 million, $85 million, $73 million, $65 million and $58 million, respectively. Leases See Note 12, "Leases" for our accounting policies related to leases. Net Assets Held for Sale During 2021, we had immaterial impairment charges on net assets held for sale. During 2019 and 2020, we committed to plans to sell certain businesses in the North America and Europe segments. As a result, these businesses were classified as net assets held for sale and were required to be adjusted to the lower of fair value less cost to sell or carrying value, resulting in net impairment charges totaling $3 million for the year ended December 31, 2020. As of December 31, 2021 and 2020, assets and liabilities held for sale were immaterial. In the second quarter of 2020, we completed the sale of one of these businesses, a non-core telecommunications operation in Germany, resulting in an immaterial loss on sale (presented in Loss on disposal of businesses and impairment of net assets held for sale in the Consolidated Statements of Income). The disposed business was immaterial, generating annualized revenue of approximately $78 million during the twelve-month period ended May 31, 2020. In the third quarter of 2019, we completed the sales of two of these businesses, an aviation business in North America and a wholesale business in Bulgaria, resulting in a net $47 million impairment charge for the year ended December 31, 2019 (presented in Loss on disposal of businesses and impairment of net assets held for sale in the Consolidated Statements of Income). Excluding the Stahlgruber Czech Republic wholesale business discussed in Note 2, "Discontinued Operations," as of December 31, 2019, assets and liabilities held for sale were immaterial, and were recorded within Prepaid expenses and other current assets and Other current liabilities, respectively, on the Consolidated Balance Sheet. The disposed businesses in 2019 were immaterial, generating annualized revenue of approximately $55 million prior to the divestitures. We record the net assets of held for sale businesses at the lower of fair value less cost to sell or carrying value. Fair values were based on projected discounted cash flows and/or estimated selling prices. Management's assumptions for the discounted cash flow analyses of the businesses were based on projected revenues and profits, tax rates, capital expenditures, working capital requirements and discount rates. For businesses for which we utilized estimated selling prices to calculate the fair value, the inputs to the estimates included projected market multiples and any reasonable offers. Due to uncertainties in the estimation process, it is possible that actual results could differ from the estimates used in management's analysis. The inputs utilized in the fair value estimates are classified as Level 3 within the fair value hierarchy. The fair values of the net assets were measured on a non-recurring basis as of December 31, 2021. Impairment of Long-Lived Assets Long-lived assets are reviewed for possible impairment whenever events or circumstances indicate that the carrying amount of such assets may not be recoverable. If such review indicates that the carrying amount of long-lived assets is not recoverable, the carrying amount of such assets is reduced to fair value. Other than the impairment charges recorded upon the classification of certain businesses in our North America and Europe segments as held for sale discussed in the "Net Assets Held for Sale" section above, there were no material impairments to the carrying value of long-lived assets during the years ended December 31, 2021, 2020 or 2019. Investments in Unconsolidated Subsidiaries Our investment in unconsolidated subsidiaries was $181 million and $155 million as of December 31, 2021 and December 31, 2020, respectively. Europe Segment Our investment in unconsolidated subsidiaries in Europe was $156 million and $137 million as of December 31, 2021 and 2020, respectively. We recorded equity in earnings of $18 million and $8 million during the years ended December 31, 2021 and 2020, respectively, and equity in losses of $33 million during the year ended December 31, 2019, mainly related to the investment in Mekonomen. On December 1, 2016, we acquired a 26.5% equity interest in Mekonomen for an aggregate purchase price of $181 million. In October 2018, we acquired an additional $48 million of equity in Mekonomen at a discounted share price as part of Mekonomen's rights issue, increasing our equity interest to 26.6%. We are accounting for our interest in Mekonomen using the equity method of accounting, as this investment gives us the ability to exercise significant influence, but not control, over the investee. As of December 31, 2021, our share of the book value of Mekonomen's net assets exceeded the book value of the investment in Mekonomen by $8 million; this difference is primarily related to Mekonomen's Accumulated Other Comprehensive Income balance as of the acquisition date in 2016. We are recording our equity in the net earnings of Mekonomen on a one quarter lag. During the year ended December 31, 2019, we recognized an other-than-temporary impairment charge of $40 million, which represented the difference in the carrying value and the fair value of our investment in Mekonomen. The fair value of the investment in Mekonomen was determined using the Mekonomen share price as of the date of our impairment test. The impairment charge is recorded in Equity in earnings (losses) of unconsolidated subsidiaries in the Consolidated Statements of Income. Mekonomen announced in February 2019, March 2020, and February 2021 that the Mekonomen Board of Directors proposed no dividend payment in 2019, 2020, or 2021. In the event a dividend would be proposed, it would be payable in SEK. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at December 31, 2021 was $265 million (using the Mekonomen share price of SEK 157 as of December 31, 2021) compared to a carrying value of $145 million. North America Segment Our investment in unconsolidated subsidiaries in the North America segment was $25 million and $19 million as of December 31, 2021 and December 31, 2020, respectively. We recorded equity in earnings or (losses) of $5 million, $(3) million, and $1 million for the years ended December 31, 2021, 2020, and 2019, respectively. Warranty Reserve Some of our salvage mechanical products are sold with a standard six month warranty against defects. Additionally, some of the remanufactured engines are sold with a standard three or four year warranty against defects. We also provide a limited lifetime warranty for certain of our aftermarket products. These assurance-type warranties are not considered a separate performance obligation, and thus no transaction price is allocated to them. We record warranty costs in Cost of goods sold in our Consolidated Statements of Income. Our warranty reserve is calculated using historical claim information to project future warranty claims activity and is recorded within Other accrued expenses and Other noncurrent liabilities on our Consolidated Balance Sheets based on the expected timing of the related payments. The changes in the warranty reserve are as follows (in thousands): Warranty Reserve Balance as of January 1, 2020 $ 25,441 Warranty expense 67,365 Warranty claims (64,892) Balance as of December 31, 2020 27,914 Warranty expense 74,375 Warranty claims (72,740) Balance as of December 31, 2021 $ 29,549 Self-Insurance Reserves We self-insure a portion of our employee medical benefits under the terms of our employee health insurance program. We purchase certain stop-loss insurance to limit our liability exposure. We also self-insure a portion of our property and casualty risk, which includes automobile liability, general liability, directors and officers liability, workers' compensation, and property coverage, under deductible insurance programs. The insurance premium costs are expensed over the contract periods. A reserve for liabilities associated with these losses is established for claims filed and claims incurred but not yet reported based upon our estimate of the ultimate cost, which is calculated using an analysis of historical data. We monitor new claim and claim developments as well as trends related to the claims incurred but not reported in order to assess the adequacy of our insurance reserves. Total self-insurance reserves were $117 million and $110 million, of which $61 million and $55 million was classified as current, as of December 31, 2021 and 2020, respectively, and are classified as Other accrued expenses on the Consolidated Balance Sheets. The remaining balances of self-insurance reserves are classified as Other noncurrent liabilities, which reflects management's estimates of when claims will be paid. We had outstanding letters of credit of $69 million and $71 million at December 31, 2021 and 2020, respectively, to guarantee self-insurance claims payments. While we do not expect the amounts ultimately paid to differ significantly from the estimates, the insurance reserves and corresponding expenses could be affected if future claims experience differs significantly from historical trends and assumptions. 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. Government Assistance During the years ended December 31, 2021 and 2020, we recorded financial assistance from foreign governments, primarily in the form of grants, as credits in the following amounts (in thousands): Year Ended December 31, 2021 2020 Cost of goods sold $ 547 $ 1,422 Selling, general and administrative expenses 15,419 50,647 Total government assistance $ 15,966 $ 52,069 During the years ended December 31, 2021 and 2020, we received grants from European governments of $11 million and $43 million, respectively, with the remaining amounts relating to Canada. Financial assistance received from governments is recorded during the period in which we incur the costs that the assistance is intended to offset (and only if it is probable that we will meet the conditions required under the terms of the assistance). On March 27, 2020, the Coronavirus Aid, Relief and Economic Security Act ("CARES Act") was enacted in the U.S. to provide economic relief to individuals and businesses facing economic hardship as a result of the COVID-19 pandemic. Similar legislation was enacted in many of the international jurisdictions in which we operate. Tax impacts in these legislative actions did not have a material impact on our results of operations for the years ended December 31, 2021 and 2020. Those initiatives did provide us with the opportunity to defer the timing of certain income tax, indirect tax and payroll tax payments in various jurisdictions. As of December 31, 2020, approximately $30 million of payments otherwise due by the end of 2020 were deferred, of which we paid half in 2021 and will pay the other half in 2022. Income Taxes Current income taxes are provided on income reported for financial reporting purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred income taxes are provided for temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before we are able to realize their benefit or that future deductibility is uncertain. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. We recognize the benefits of uncertain tax positions taken or expected to be taken in tax returns in the provision for income taxes only for those positions that are more likely than not to be realized. We follow a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. Our policy is to include any interest and penalties associated with income tax obligations in income tax expense. Stockholders' Equity Treasury Stock On October 25, 2018, our Board of Directors authorized a stock repurchase program under which we may purchase up to $500 million of our common stock from time to time through October 25, 2021. On October 25, 2019, our Board of Directors authorized an increase to our existing stock repurchase program under which the Company may purchase up to an additional $500 million of our common stock from time to time through October 25, 2022; this extended date also applied to the original repurchase program. On July 28, 2021, our Board of Directors authorized an increase to our existing stock repurchase program under which the Company may purchase up to an additional $1,000 million of our common stock from time to time through October 25, 2024; this extended date also applies to the original repurchase program, as previously extended. With the increase, the Board of Directors has authorized a total of $2,000 million of common stock repurchases. Repurchases under the program may be made in the open market or in privately negotiated transactions, with the amount and timing of repurchases depending on market conditions and corporate needs. The repurchase program does not obligate us to acquire any specific number of shares and may be suspended or discontinued at any time. Delaware law imposes restrictions on stock repurchases. Repurchased shares are accounted for as treasury stock using the cost method. During the year ended December 31, 2021, we repurchased 17.2 million shares of common stock for an aggregate price of $877 million. During the year ended December 31, 2020, we repurchased 4.1 million shares of common stock for an aggregate price of $117 million. During 2019, we repurchased 10.9 million shares of common stock for an aggregate price of $292 million. As of December 31, 2021, there was $654 million of remaining capacity under the repurchase program. Repurchased shares are accounted for as treasury stock using the cost method. Noncontrolling Interest In October 2020, we purchased all of the noncontrolling interest of a subsidiary in our North America segment for a purchase price of $10 million. This purchase resulted in a net decrease to Noncontrolling interest of $10 million and a decrease to Additional paid-in-capital of $1 million in our Consolidated Financial Statements as of December 31, 2020. In February 2020, as part of the sale of Stahlgruber's Czech Republic business, we divested the noncontrolling interest of the business, which resulted in a net decrease to Noncontrolling interest of $11 million in the Consolidated Financial Statements as of December 31, 2020. See Note 2, "Discontinued Operations," for further information. In July 2019, we purchased substantially all of the noncontrolling interest of a subsidiary acquired in connection with the Stahlgruber acquisition for a purchase price of $19 million, which included the issuance of $14 million of notes payable. This purchase resulted in a net decrease to Noncontrolling interest of $10 million and a decrease to Additional paid-in capital of $9 million in the Consolidated Financial Statements as of December 31, 2019. In December 2019, we modified the shares of a noncontrolling interest of a subsidiary acquired in connection with the Stahlgruber acquisition and issued new redeemable shares to the minority shareholder. The new redeemable shares contain (i) a put option for all noncontrolling interest shares at a fixed price of $24 million (€21 million) for the minority shareholder exercisable in the fourth quarter of 2023, (ii) a call option for all noncontrolling interest shares at a fixed price of $26 million (€23 million) for us exercisable beginning in the first quarter of 2026 through the end of the fourth quarter of 2027, and (iii) a guaranteed dividend to be paid quarterly to the minority shareholder through the fourth quarter of 2023. The new redeemable shares do not provide the minority shareholder with rights to participate in the profits and losses of the subsidiary prior to the exercise date of the put option. As the put option is outside our control, we recorded a $24 million Redeemable noncontrolling interest at the put option's redemption value outside of permanent equity on our Consolidated Balance Sheets. This transaction also resulted in a decrease to Additional paid-in capital of $18 million, a decrease to Noncontrolling interest of $12 million, and a $7 million dividend payable ($2 million recorded in Other current liabilities and $5 million in Other noncurrent liabilities) in the Consolidated Financial Statements as of December 31, 2019. The redeemable noncontrolling interest and dividend payable represent noncash financing activities in the Consolidated Statements of Cash Flows in 2019. Foreign Currency Translation For most of our foreign operations, the local currency is the functional currency. Assets and liabilities are translated into U.S. dollars at the period-ending exchange rate. Statements of Income amounts are translated to U.S. dollars using monthly average exchange ra |
Noncontrolling Interest Disclosure [Text Block] | In December 2019, we modified the shares of a noncontrolling interest of a subsidiary acquired in connection with the Stahlgruber acquisition and issued new redeemable shares to the minority shareholder. The new redeemable shares contain (i) a put option for all noncontrolling interest shares at a fixed price of $24 million (€21 million) for the minority shareholder exercisable in the fourth quarter of 2023, (ii) a call option for all noncontrolling interest shares at a fixed price of $26 million (€23 million) for us exercisable beginning in the first quarter of 2026 through the end of the fourth quarter of 2027, and (iii) a guaranteed dividend to be paid quarterly to the minority shareholder through the fourth quarter of 2023. The new redeemable shares do not provide the minority shareholder with rights to participate in the profits and losses of the subsidiary prior to the exercise date of the put option. As the put option is outside our control, we recorded a $24 million Redeemable noncontrolling interest at the put option's redemption value outside of permanent equity on our Consolidated Balance Sheets. This transaction also resulted in a decrease to Additional paid-in capital of $18 million, a decrease to Noncontrolling interest of $12 million, and a $7 million dividend payable ($2 million recorded in Other current liabilities and $5 million in Other noncurrent liabilities) in the Consolidated Financial Statements as of December 31, 2019. The redeemable noncontrolling interest and dividend payable represent noncash financing activities in the Consolidated Statements of Cash Flows in 2019. |
Revenue Recognition Revenue Rec
Revenue Recognition Revenue Reconition (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue From Contract With Customer | Revenue Recognition The majority of our revenue is derived from the sale of vehicle parts. We recognize revenue for the sale of products at the point in time when the performance obligation has been satisfied and control has transferred to the customer, which generally occurs upon shipment or delivery to a customer based on terms of the sale. Sources of Revenue We report revenue in two categories: (i) parts and services and (ii) other. The following table sets forth revenue by category, with parts and services revenue further disaggregated by reportable segment (in thousands): Year Ended December 31, 2021 2020 2019 North America $ 4,243,203 $ 3,988,214 $ 4,600,903 Europe 6,033,396 5,470,159 5,817,547 Specialty 1,863,917 1,505,340 1,459,396 Parts and services 12,140,516 10,963,713 11,877,846 Other 947,988 665,117 628,263 Total revenue $ 13,088,504 $ 11,628,830 $ 12,506,109 Parts and Services Parts revenue is generated from the sale of vehicle products including replacement parts, components and systems used in the repair and maintenance of vehicles and specialty products and accessories to improve the performance, functionality and appearance of vehicles. Services revenue includes (i) additional services that are generally billed concurrently with the related product sales, such as the sale of service-type warranties, (ii) fees for admission to our self service yards, and (iii) diagnostic and repair services. In North America, vehicle replacement products include sheet metal collision parts such as doors, hoods, and fenders; bumper covers; head and tail lamps; automotive glass products such as windshields; mirrors and grilles; wheels; and large mechanical items such as engines and transmissions. In Europe, vehicle replacement products include a wide variety of small mechanical products such as brake pads, discs and sensors; clutches; electrical products such as spark plugs and batteries; steering and suspension products; filters; and oil and automotive fluids. In Specialty operations, we serve seven product segments: truck and off-road; speed and performance; recreational vehicles; towing; wheels, tires and performance handling; marine; and miscellaneous accessories. Our service-type warranties typically have service periods ranging from 6 months to 36 months. Under FASB Accounting Standards Codification Topic 606 ("ASC 606"), proceeds from these service-type warranties are deferred at contract inception and amortized on a straight-line basis to revenue over the contract period. The changes in deferred service-type warranty revenue are as follows (in thousands): Service-Type Warranties Balance as of January 1, 2020 $ 27,067 Additional warranty revenue deferred 43,214 Warranty revenue recognized (44,659) Balance as of December 31, 2020 25,622 Additional warranty revenue deferred 70,561 Warranty revenue recognized (64,526) Balance as of December 31, 2021 $ 31,657 Other Revenue Revenue from other sources includes sales of scrap and precious metals (platinum, palladium, and rhodium), bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from furnace operations. We derive scrap metal and other precious metals from several sources, including vehicles that have been used in both our wholesale and self service recycling operations and from OEMs and other entities that contract with us for secure disposal of "crush only" vehicles. Revenue from the sale of hulks in wholesale and self service recycling operations is recognized based on a price per ton of delivered material when the customer (processor) collects the scrap. Some adjustments may occur when the customer weighs the scrap at their location, and revenue is adjusted accordingly. Revenue by Geographic Area See Note 15, "Segment and Geographic Information" for information related to our revenue by geographic region. Variable Consideration The amount of revenue ultimately received from the customer can vary due to variable consideration including returns, discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, or other similar items. We utilize the “expected value method” or the “most likely amount” method in order to estimate variable consideration, depending on the type of variable consideration, with contemplation of any expected reversals in revenue. We recorded a refund liability and return asset for expected returns of $107 million and $58 million, respectively, as of December 31, 2021, and $102 million and $57 million, respectively, as of December 31, 2020. The refund liability is presented separately on the Consolidated Balance Sheets within current liabilities while the return asset is presented within Prepaid expenses and other current assets. Other types of variable consideration consist primarily of discounts, volume rebates, and other customer sales incentives that are recorded in Receivables, net on the Consolidated Balance Sheets. We recorded a reserve for variable consideration of $144 million and $127 million as of December 31, 2021 and 2020, respectively. While other customer incentive programs exist, we characterize them as material rights in the context of our sales transactions. We consider these programs to be immaterial to the Consolidated Financial Statements. Contract Costs Under ASC 340, "Other Assets and Deferred Costs," we have elected to recognize incremental costs of obtaining a contract (commissions earned by our sales representatives on product sales) as an expense when incurred, as we believe the amortization period of the asset would be one year or less due to the short-term nature of our contracts. Sales Taxes Sales tax amounts collected from customers for remittance to governmental authorities are presented on a net basis. Therefore, the taxes are excluded from revenue in the Consolidated Statements of Income and are shown as a current liability on the Consolidated Balance Sheets until remitted. |
Restructuring and Acquisition R
Restructuring and Acquisition Related Expenses (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Acquisition Related Expenses | Restructuring and Acquisition Related Expenses Acquisition Related Expenses We incurred $3 million of acquisition related expenses for the year ended December 31, 2021. These expenses included external costs such as legal, accounting and advisory fees related to completed and potential transactions. We incurred $8 million of acquisition related expenses for the year ended December 31, 2020. The expenses primarily resulted from the resolution of a purchase price matter related to the Stahlgruber transaction for an amount above our prior estimate. We incurred $2 million of acquisition related expenses for the year ended December 31, 2019. These expenses included external costs such as legal, accounting and advisory fees related to our acquisitions. 2019 Global Restructuring Program In the second quarter of 2019, we commenced a cost reduction initiative, covering all three of our reportable segments, designed to eliminate underperforming assets and cost inefficiencies. We have incurred and expect to incur costs for inventory write-downs; employee severance and other expenditures related to employee terminations; lease exit costs, such as lease termination fees, accelerated amortization of operating lease assets and impairment of operating lease assets; other costs related to facility exits, such as moving expenses to relocate inventory and equipment; and accelerated depreciation of fixed assets to be disposed earlier than the end of the previously estimated useful lives. During the year ended December 31, 2020, we incurred $7 million of restructuring expenses primarily related to facility exit costs and employee-related costs. These costs were recorded within Restructuring and acquisition related expenses in the Consolidated Statements of Income. Of the program costs incurred during 2020, $4 million and $3 million related to the Europe and North America segments, respectively. During the year ended December 31, 2019, we incurred $37 million primarily related to inventory write-downs, facility exit costs, and employee-related costs. Of these expenses, $17 million, primarily related to Andrew Page Limited ("Andrew Page") branch consolidation and brand rationalization, was recorded within Cost of goods sold in the Consolidated Statement of Income during the year ended December 31, 2019, and $20 million was recorded within Restructuring and acquisition related expenses. Of the program costs incurred during 2019, $25 million, $11 million and $1 million related to the Europe, North America and Specialty segments, respectively. The actions under this program are substantially complete, and the expenses incurred during the year ended December 31, 2021 were $2 million. The total cumulative program costs incurred to date were $47 million, of which $31 million, $14 million and $1 million were in the Europe, North America and Specialty segments, respectively. As of December 31, 2021, restructuring liabilities related to this program were immaterial. 2020 Global Restructuring Program Beginning in the first quarter of 2020, we initiated a further restructuring program aimed at cost reductions across all our reportable segments through the elimination of underperforming assets and cost inefficiencies. These actions are incremental to those initiated as part of the 2019 Global Restructuring Program, and include costs for inventory write-downs; employee severance and other expenditures related to employee terminations; lease exit costs, such as lease termination fees, accelerated amortization of operating lease assets and impairment of operating lease assets; other costs related to facility exits, such as moving expenses to relocate inventory and equipment; and accelerated depreciation of fixed assets to be disposed of earlier than t he end of the previously estimated useful lives. We expanded this program during the second and third quarters of 2020 as we identified additional opportunities to eliminate inefficiencies, including actions in response to impacts to the business from COVID-19. During the year ended December 31, 2021, we recognized net restructuring expenses totaling $9 million which included employee-related costs, facility exit costs and a $3 million gain in the first quarter from the sale of a building to be closed as part of the restructuring plan. During the year ended December 31, 2020, we recognized restructuring expenses totaling $50 million for employee-related costs, facility exit costs and inventory write-downs. Of these expenses, $7 million resulted from inventory impairment charges related to facility consolidation actions and brand rationalizations and were recorded in Cost of goods sold in the Consolidated Statement of Income. Of the cumulative program costs incurred to date, $30 million, $27 million, and $1 million related to our North America, Europe and Specialty segments, respectively. We estimate total costs under the program through the program's expected completion date in 2023 will be between $60 million and $70 million, of which approximately $32 million, $32 million, and $1 million will be incurred by our Europe, North America and Specialty segments, respectively; these segment amounts represent the midpoints of the expected ranges of costs to be incurred by each segment. As of December 31, 2021 and December 31, 2020, restructuring liabilities related to this program totaled $11 million and $21 million, respectively, including $9 million and $17 million, respectively, related to leases we exited or expect to exit prior to the end of the lease term (reported in Current portion of operating lease liabilities and Long-term operating lease liabilities, excluding current portion on our Consolidated Balance Sheets), and $2 million and $4 million, respectively, for employee termination costs (reported in Accrued payroll-related liabilities on our Consolidated Balance Sheets). Our lease-related restructuring liabilities are estimated based on the remaining rent payments after the actual exit date for facilities closed as of December 31, 2021 and after the planned exit date for facilities expected to close in future periods; these liabilities do not reflect any estimated proceeds we may be able to achieve through subleasing the facilities. Acquisition Integration Plans During the year ended December 31, 2021, we incurred immaterial restructuring expenses for our acquisition plans. We expect to incur future expenses of up to $5 million to complete an integration plan related to acquisitions completed in the Specialty segment during the year ended December 31, 2021. During the year ended December 31, 2020, we incurred $9 million of restructuring expenses for our acquisition integration plans. These expenses were primarily related to the integration of operations in Belgium. During the year ended December 31, 2019, we incurred $18 million of restructuring expenses primarily related to the acquisition integration efforts in our Europe segment. These expenses included $14 million related to the integration of the acquisition of Andrew Page, including $4 million within Cost of goods sold in the Consolidated Statement of Income. 1 LKQ Europe Program In September 2019, we announced a multi-year program called "1 LKQ Europe" which is intended to create structural centralization and standardization of key functions to facilitate the operation of the Europe segment as a single business. Under the 1 LKQ Europe program, we will reorganize our non-customer-facing teams and support systems through various projects including the implementation of a common ERP platform, rationalization of our product portfolio, and creation of a Europe headquarters office and central back office. While certain projects were delayed in 2020 as a result of the COVID-19 pandemic, such as the procurement initiatives and the new headquarters in Switzerland, we also accelerated certain projects, such as the integration of previously acquired networks and sharing resources across LKQ Europe. We completed the organizational design and implementation projects in June 2021, with the remaining projects scheduled to be completed by 2024. During the year ended December 31, 2021, we incurred $6 million of employee-related restructuring charges under the 1 LKQ Europe program. We estimate that we will incur between $40 million and $50 million in total personnel and inventory related restructuring charges through 2024 under the program. We may identify additional initiatives and projects under the 1 LKQ Europe program in future periods that may result in additional restructuring expense, although we are currently unable to estimate the range of charges for such potential future initiatives and projects. As of December 31, 2021, the restructuring liabilities related to this program were immaterial. |
Equity Incentive Plans
Equity Incentive Plans | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Equity Incentive Plans | Stock-Based CompensationIn order to attract and retain employees, non-employee directors, consultants, and other persons associated with the Company, we grant equity-based awards under the LKQ Corporation 1998 Equity Incentive Plan (the “Equity Incentive Plan”). The total number of shares approved by stockholders for issuance under the Equity Incentive Plan is 70 million shares, subject to antidilution and other adjustment provisions. We have granted restricted stock units ("RSUs"), stock options, and restricted stock under the Equity Incentive Plan. Of the shares approved by stockholders for issuance under the Equity Incentive Plan, 9 million shares remained available for issuance as of December 31, 2021. We expect to issue new or treasury shares of common stock to cover past and future equity grants. RSUs The RSUs we have issued vest over periods of up to five years, subject to a continued service condition. Currently outstanding RSUs (other than PSUs, which are described below) 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 all of the RSUs containing a performance-based vesting condition, we 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. Starting with our 2019 grants, participants who are eligible for retirement (defined as a voluntary separation of service from the Company after the participant has attained at least 60 years of age and completed at least five years of service) will continue to vest in their awards following retirement; if retirement occurs during the first year of the vesting period (for RSUs subject to a time-based vesting condition) or the first year of the performance period (for RSUs with a performance-based vesting condition), the participant vests in a prorated amount of the RSU grant based on the portion of the year employed. For our RSU grants prior to 2019, participants forfeit their unvested shares upon retirement. Outstanding unvested RSUs earn dividend equivalents at the same rate as dividends on LKQ’s common stock. The dividend equivalents are subject to the same vesting requirements, restrictions and forfeiture provisions as the original award. The Compensation Committee of our Board of Directors (the "Compensation Committee") approved the grant of 208,603, 230,360, and 270,388 RSUs to our executive officers that included both a performance-based vesting condition and a time-based vesting condition in 2021, 2020, and 2019, respectively. The performance-based vesting conditions for the 2021, 2020, and 2019 grants to our executive officers have been satisfied. The fair value of RSUs that vested during the years ended December 31, 2021, 2020, and 2019 was $37 million, $27 million, and $22 million, respectively; the fair value of RSUs vested is based on the market price of LKQ stock on the date vested. The following table summarizes activity related to our RSUs under the Equity Incentive Plan for the year ended December 31, 2021: Number Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2021 1,479,672 $ 31.71 Granted (2) 738,014 $ 39.22 Vested (805,529) $ 33.11 Forfeited / Canceled (55,078) $ 34.39 Unvested as of December 31, 2021 1,357,079 $ 34.85 Expected to vest after December 31, 2021 1,180,689 $ 34.84 2.6 $ 70,877 (1) The aggregate intrinsic value of expected to vest RSUs represents the total pretax intrinsic value (the fair value of LKQ's stock on the last day of the period multiplied by the number of units) that would have been received by the holders had all the expected to vest RSUs vested. This amount changes based on the market price of LKQ’s common stock. (2) The weighted average grant date fair value of RSUs granted during the years ended December 31, 2020 and 2019 was $31.68 and $27.82, respectively. Starting in 2019, we granted performance-based three-year RSUs ("PSUs") to certain employees, including executive officers, under our Equity Incentive Plan. As these awards are performance-based, the exact number of shares to be paid out may be up to twice the grant amount, depending on our performance and the achievement of certain performance metrics (adjusted earnings per share, average organic parts and services revenue growth, and average return on invested capital) over the applicable three year performance periods. Outstanding unvested PSUs earn dividend equivalents at the same rate as dividends on LKQ's common stock. The dividend equivalents are subject to the same vesting requirements, restrictions and forfeiture provisions as the original award. The following table summarizes activity related to our PSUs under the Equity Incentive Plan for the year ended December 31, 2021: Number Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2021 291,601 $ 29.98 Granted (2) 125,656 $ 38.31 Performance-based adjustment (3) 52,562 $ 27.72 Forfeited / Canceled (11,800) $ 31.77 Unvested as of December 31, 2021 458,019 $ 31.96 Expected to vest after December 31, 2021 447,595 $ 32.01 1.0 $ 26,869 (1) The aggregate intrinsic value of expected to vest PSUs represents the total pretax intrinsic value (the fair value of LKQ's stock on the last day of each period multiplied by the number of units) that would have been received by the holders had all the expected to vest PSUs vested. This amount changes based on the market price of LKQ’s common stock and the achievement of the performance metrics relative to the established targets. (2) Represents the number of PSUs at target payout. The weighted average grant date fair value of PSUs granted during the years ended December 31, 2020 and 2019 was $31.85 and $27.69, respectively. (3) Represents the net adjustment to the number of shares issuable upon vesting of performance-based PSUs based on the Company's actual financial performance metrics for the three year performance period ended December 31, 2021. Stock Options Stock options vested over periods of up to five years, subject to a continued service condition. Stock options expired either six years or ten years from the date they were granted. No options were outstanding as of December 31, 2021 or 2020. Stock-Based Compensation Expense For the RSUs 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 years ended December 31, 2021, 2020, and 2019, we recognized $7 million , $11 million, and $11 million, respectively, of stock based compensation expense 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. The PSU expense is calculated using the projected award value, which is based on an estimate of the achievement of the performance objectives, and is recognized on a straight-line basis over the performance period. Forfeitures on RSUs and PSUs are recorded as they occur. Pre-tax stock-based compensation expense for RSUs and PSUs totaled $34 million, $29 million, and $28 million for the years ended December 31, 2021, 2020, and 2019, respectively. The following table sets forth the classification of total stock-based compensation expense included in the Consolidated Statements of Income for our continuing operations (in thousands): Year Ended December 31, 2021 2020 2019 Cost of goods sold $ 649 $ 506 $ 477 Selling, general and administrative expenses 33,087 28,572 27,218 Total stock-based compensation expense 33,736 29,078 27,695 Income tax benefit (7,479) (6,614) (6,227) Total stock-based compensation expense, net of tax $ 26,257 $ 22,464 $ 21,468 We did not capitalize any stock-based compensation costs during the years ended December 31, 2021, 2020, and 2019. As of December 31, 2021, unrecognized compensation expense related to unvested RSUs and PSUs is expected to be recognized as follows (in thousands): Unrecognized Compensation Expense 2022 $ 21,325 2023 13,169 2024 6,040 2025 3,039 2026 177 Total unrecognized compensation expense $ 43,750 Stock-based compensation expense related to these awards will be different to the extent that forfeitures are realized and performance under the PSUs differs from current achievement estimates. |
Earnings Per Share Earnings Per
Earnings Per Share Earnings Per Share (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share incorporate the incremental shares issuable upon the assumed exercise of stock options and the assumed vesting of RSUs. Certain of our RSUs and stock options were excluded from the calculation of diluted earnings per share because they were antidilutive, but these equity instruments could be dilutive in the future. The following chart sets forth the computation of earnings per share (in thousands, except per share amounts): Year Ended December 31, 2021 2020 2019 Income from continuing operations $ 1,091,476 $ 640,509 $ 543,415 Denominator for basic earnings per share—Weighted-average shares outstanding 296,836 304,640 310,155 Effect of dilutive securities: RSUs 672 362 393 PSUs 214 3 — Stock options — 1 421 Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding 297,722 305,006 310,969 Basic earnings per share from continuing operations $ 3.68 $ 2.10 $ 1.75 Diluted earnings per share from continuing operations (1) $ 3.67 $ 2.10 $ 1.75 (1) Diluted earnings per share from continuing operations was computed using the treasury stock method for dilutive securities. 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 years ended December 31, 2021, 2020, and 2019 (in thousands): Year Ended December 31, 2021 2020 2019 Antidilutive securities: RSUs 29 673 586 Stock options — — 24 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2021 | |
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): Foreign Unrealized Gain (Loss) on Cash Flow Hedges Unrealized Gain (Loss) on Pension Plans Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries Accumulated Balance as of January 1, 2019 $ (177,597) $ 14,374 $ (8,075) $ (3,652) $ (174,950) Pretax income (loss) 7,083 23,850 (31,801) — (868) Income tax effect — (5,579) 8,579 — 3,000 Reclassification of unrealized gain — (35,686) (782) — (36,468) Reclassification of deferred income taxes — 8,399 145 — 8,544 Disposal of business (379) — — — (379) Other comprehensive income from unconsolidated subsidiaries — — — 236 236 Balance as of December 31, 2019 $ (170,893) $ 5,358 $ (31,934) $ (3,416) $ (200,885) Pretax income (loss) 112,695 (48,540) (9,165) — 54,990 Income tax effect — 11,559 3,058 — 14,617 Reclassification of unrealized loss — 40,359 6,926 — 47,285 Reclassification of deferred income taxes — (9,704) (1,852) — (11,556) Disposal of businesses 1,072 — — — 1,072 Other comprehensive loss from unconsolidated subsidiaries — — — (4,532) (4,532) Balance as of December 31, 2020 $ (57,126) $ (968) $ (32,967) $ (7,948) $ (99,009) Pretax (loss) income (63,477) 2,937 10,901 — (49,639) Income tax effect — (698) (3,267) — (3,965) Reclassification of unrealized (gain) loss — (1,758) 1,649 — (109) Reclassification of deferred income taxes — 481 (472) — 9 Disposal of businesses 12 — — — 12 Other comprehensive loss from unconsolidated subsidiaries — — — (429) (429) Balance as of December 31, 2021 $ (120,591) $ (6) $ (24,156) $ (8,377) $ (153,130) The amounts of unrealized gains and losses on the Cash Flow Hedges reclassified to the Consolidated Statements of Income are as follows (in thousands): Year Ended December 31, Classification 2021 2020 2019 Unrealized (losses) gains on interest rate swaps Interest expense $ (1,188) $ (3,160) $ 5,872 Unrealized gains on cross currency swaps Interest expense 539 10,188 15,794 Unrealized gains (losses) on cross currency swaps (1) Interest income and other income, net 1,973 (38,198) 14,020 Unrealized gains (losses) on foreign currency forward contracts (1) Interest income and other income, net 434 (9,189) — Total $ 1,758 $ (40,359) $ 35,686 (1) The amounts reclassified to Interest income and other income, net in the Consolidated Statements of Income offset the impact of the remeasurement of the underlying transactions. Net unrealized losses and gains related to our pension plans were reclassified to Interest income and other income, net in the Consolidated Statements of Income during each of the years ended December 31, 2021, 2020 and 2019. Our policy is to reclassify the income tax effect from Accumulated other comprehensive loss to the Provision for income taxes when the related gains and losses are released to the Consolidated Statements of Income. |
Long-Term Obligations
Long-Term Obligations | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Long-Term Obligations | Long-Term Obligations Long-term obligations consist of the following (in thousands): December 31, 2021 2020 Senior secured credit agreement: Term loans payable $ — $ 323,750 Revolving credit facilities 1,886,802 642,958 Euro Notes (2024) 568,500 610,800 Euro Notes (2026/28) 284,250 1,221,600 Notes payable through October 2030 at weighted average interest rates of 2.8% and 3.3%, respectively 23,318 24,526 Finance lease obligations at weighted average interest rates of 3.5% and 3.5%, respectively 51,556 57,336 Other debt at weighted average interest rates of 1.1% and 1.2%, respectively 9,405 15,706 Total debt 2,823,831 2,896,676 Less: long-term debt issuance costs (11,604) (25,225) Less: current debt issuance costs (315) (313) Total debt, net of debt issuance costs 2,811,912 2,871,138 Less: current maturities, net of debt issuance costs (34,752) (58,497) Long term debt, net of debt issuance costs $ 2,777,160 $ 2,812,641 The scheduled maturities of long-term obligations outstanding at December 31, 2021 are as follows (in thousands): Long-Term Obligations 2022 (1) $ 35,067 2023 13,820 2024 2,463,996 2025 9,580 2026 3,386 Thereafter 297,982 Total debt (2) $ 2,823,831 (1) Maturities of long-term obligations due by December 31, 2022 includes $16 million of short-term debt that may be extended beyond the current due date. (2) The total debt amounts presented above reflect the gross values to be repaid (excluding debt issuance costs of $12 million as of December 31, 2021). Senior Secured Credit Agreement On June 11, 2020, LKQ Corporation and certain other subsidiaries of LKQ (collectively, the "Borrowers") entered into Amendment No. 4 to the Fourth Amended and Restated Credit Agreement dated January 29, 2016 (the "Credit Agreement"), which modified the maximum permitted net leverage ratio through the quarter ended September 30, 2021. Beginning with the quarter ended December 31, 2021, the maximum permitted net leverage ratio reverted to the terms in effect prior to the amendment, or 4.00:1.00. Amendment No. 4 to the Credit Agreement also made certain other immaterial modifications. On December 14, 2020, we entered into Amendment No. 5 to the Credit Agreement; the amendment added as a borrower a subsidiary, LKQ Europe GmbH, a Swiss limited liability company, and made certain other immaterial or clarifying modifications. On November 23, 2021, we entered into Amendment No. 6 to the Credit Agreement; the amendment modified certain interest rates to provide that (1) Loans denominated in euros shall bear interest at a rate per annum equal to the Euro Interbank Offered Rate as administered by the European Money Markets Institute (or a comparable or successor administrator approved by the Administrative Agent) plus the Applicable Rate, (2) Swingline Loans denominated in Pounds Sterling shall bear interest at a rate per annum equal to the Sterling Overnight Index Average as administered by the Bank of England (or any successor administrator of the Sterling Overnight Index Average) (“SONIA”) plus the Applicable Rate, (3) Revolving Loans denominated in Pounds Sterling shall bear interest at a rate per annum equal to SONIA plus an adjustment equal to 0.0326% per annum plus the Applicable Rate, and (4) Loans denominated in Swiss Francs shall bear interest at a rate per annum equal to the Swiss Average Rate Overnight as administered by SIX Swiss Exchange AG (or any successor administrator of the Swiss Average Rate Overnight) plus the Applicable Rate. All other interest rates remain the same. The total availability under the revolving credit facility's multicurrency component is $3,150 million. Amounts outstanding under the revolving credit facility are due and payable upon maturity of the Credit Agreement on January 29, 2024. We also had the option to prepay outstanding amounts under the Credit Agreement without penalty. We were required to prepay the term loan by amounts equal to proceeds from the sale or disposition of certain assets if the proceeds were not reinvested within twelve months. During the second quarter of 2021, we exercised our option to prepay the outstanding amount on the term loan, and thus did not have any term loan borrowings as of December 31, 2021. The Credit Agreement contains customary representations and warranties and customary covenants that provide limitations and conditions on our ability to enter into certain transactions. The Credit Agreement also contains financial and affirmative covenants, including limitations on our net leverage ratio and a minimum interest coverage ratio. Borrowings under the Credit Agreement bear interest at variable rates, which depend on the currency and duration of the borrowing elected, plus an applicable margin. The applicable margin is subject to change in increments of 0.25% depending on the 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 10, "Derivative Instruments and Hedging Activities," the weighted average interest rates on borrowings outstanding under the Credit Agreement at December 31, 2021 and 2020 we re 1.1% and 1.7%, respectively. We also pay a commitment fee based on the average daily unused amount of the revolving credit facilities. The commitment fee is subject to change in increments of 0.05% depending on our net leverage ratio. In addition, we pay a participation commission on outstanding letters of credit at an applicable rate based on our net leverage ratio, and a fronting fee of 0.125% to the issuing bank, which are due quarterly in arrears. Of the total borrowings outstanding under the Credit Agreement, there were no current maturities as of December 31, 2021 and $18 million classified as current maturities at December 31, 2020. As of December 31, 2021, there were letters of credit outstanding in the aggregate amount of $69 million. The amounts available under the revolving credit facilities are reduced by the amounts outstanding under letters of credit, and thus availability under the revolving credit facilities at December 31, 2021 was $1,194 million. Related to the execution of Amendment No. 4 to the Fourth Amended and Restated Credit Agreement in June 2020, we incurred $4 million of fees, the majority of which were capitalized as an offset to Long-Term Obligations and are amortized over the term of the agreement. U.S. Notes (2023) In 2013, we issued $600 million aggregate principal amount of 4.75% senior notes due 2023 (the "U.S. Notes (2023)"). The U.S. Notes (2023) were governed by the Indenture dated as of May 9, 2013 (the "U.S. Notes (2023) Indenture") among LKQ Corporation, certain of our subsidiaries (the "Guarantors"), the trustee, paying agent, transfer agent and registrar. The U.S. Notes (2023) were registered under the Securities Act of 1933. On January 10, 2020, we redeemed the U.S Notes (2023) at a redemption price equal to 101.583% of the principal amount of the U.S. Notes (2023) plus accrued and unpaid interest thereon to, but not including, January 10, 2020. The total redemption payment was $614 million, including an early-redemption premium of $9 million and accrued and unpaid interest of $4 million. In the first quarter of 2020, we recorded a loss on debt extinguishment of $13 million on the Consolidated Statement of Income related to the redemption due to the early-redemption premium and the write-off of the unamortized debt issuance costs. Euro Notes (2024) On April 14, 2016, LKQ Italia Bondco S.p.A. ("LKQ Italia"), an indirect, wholly-owned subsidiary of LKQ Corporation, completed an offering of €500 million aggregate principal amount of senior notes due April 1, 2024 (the "Euro Notes (2024)") in a private placement conducted pursuant to Regulation S and Rule 144A under the Securities Act of 1933. The proceeds from the offering were used to repay a portion of the revolver borrowings under the Credit Agreement and to pay related fees and expenses. The Euro Notes (2024) are governed by the Indenture dated as of April 14, 2016 (the "Euro Notes (2024) Indenture") among LKQ Italia, LKQ Corporation and certain of our subsidiaries (the "Euro Notes (2024) Subsidiaries"), the trustee, and the paying agent, transfer agent, and registrar. The Euro Notes (2024) bear interest at a rate of 3.875% per year from the date of original issuance or from the most recent payment date on which interest has been paid or provided for. Interest on the Euro Notes (2024) is payable in arrears on April 1 and October 1 of each year. The Euro Notes (2024) are fully and unconditionally guaranteed by LKQ Corporation and the Euro Notes (2024) Subsidiaries (the "Euro Notes (2024) Guarantors"). The Euro Notes (2024) and the related guarantees are, respectively, LKQ Italia's and each Euro Notes (2024) Guarantor’s senior unsecured obligations and are subordinated to all of LKQ Italia's and the Euro Notes (2024) Guarantors' existing and future secured debt to the extent of the assets securing that secured debt. In addition, the Euro Notes (2024) are effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the Euro Notes (2024) to the extent of the assets of those subsidiaries. The Euro Notes (2024) have been listed on the ExtraMOT, Professional Segment of the Borsa Italia S.p.A. securities exchange and the Global Exchange Market of Euronext Dublin. The Euro Notes (2024) are redeemable, in whole or in part, at any time at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date plus a "make whole" premium. On or after January 1, 2024, we may redeem some or all of the Euro Notes (2024) at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date. We may be required to make an offer to purchase the Euro Notes (2024) upon the sale of certain assets, subject to certain exceptions, and upon a change of control. In addition, in the event of certain developments affecting taxation or under certain other circumstances which, in any case, require the payment of certain additional amounts, we may redeem the Euro Notes (2024) in whole, but not in part, at any time at a redemption price of 100% of the principal amount thereof plus accrued but unpaid interest, if any, and such certain additional amounts, if any, to the redemption date. Euro Notes (2026/28) On April 9, 2018, LKQ European Holdings B.V. ("LKQ Euro Holdings"), a wholly-owned subsidiary of LKQ Corporation, completed an offering of €1,000 million aggregate principal amount of senior notes. The offering consisted of €750 million senior notes due 2026 (the "Euro Notes (2026)") and €250 million senior notes due 2028 (the "Euro Notes (2028)" and, together with the Euro Notes (2026), the "Euro Notes (2026/28)") in a private placement conducted pursuant to Regulation S and Rule 144A under the Securities Act of 1933. The proceeds from the offering, together with borrowings under our senior secured credit facility, were used (i) to finance a portion of the consideration paid for the Stahlgruber acquisition, (ii) for general corporate purposes and (iii) to pay related fees and expenses, including the refinancing of net financial debt. The Euro Notes (2026/28) are governed by the Indenture dated as of April 9, 2018 (the “Euro Notes (2026/28) Indenture”) among LKQ Euro Holdings, LKQ Corporation and certain of our subsidiaries (the “Euro Notes (2026/28) Subsidiaries”), the trustee, paying agent, transfer agent, and registrar. On April 1, 2021, we redeemed the 3.625% Euro Notes (2026) at a redemption price equal to 101.813% of the principal amount of the Euro Notes (2026) plus accrued and unpaid interest thereon to, but not including, April 1, 2021. The total redemption payment was $915 million (€777 million), including an early-redemption premium of $16 million (€14 million) and accrued and unpaid interest of $16 million (€14 million). In the second quarter of 2021, we recorded a loss on debt extinguishment of $24 million related to the redemption due to the early-redemption premium and the write-off of the unamortized debt issuance costs. The Euro Notes (2028) bear interest at a rate of 4.125% per year from the date of original issuance or from the most recent payment date on which interest has been paid or provided for. Interest on the Euro Notes (2028) is payable in arrears on April 1 and October 1 of each year. The Euro Notes (2028) are fully and unconditionally guaranteed by LKQ Corporation and the Euro Notes (2028) Subsidiaries (the "Euro Notes (2028) Guarantors"). The Euro Notes (2028) and the related guarantees are, respectively, LKQ Euro Holdings' and each Euro Notes (2028) Guarantor’s senior unsecured obligations and will be subordinated to all of LKQ Euro Holdings' and the Euro Notes (2028) Guarantors’ existing and future secured debt to the extent of the assets securing that secured debt. In addition, the Euro Notes (2028) are effectively subordinated to all of the liabilities of our subsidiaries that are not guaranteeing the Euro Notes (2028) to the extent of the assets of those subsidiaries. The Euro Notes (2028) have been listed on the Global Exchange Market of Euronext Dublin. The Euro Notes (2028) are redeemable, in whole or in part, at any time at a redemption price of 100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the redemption date plus a "make whole" premium. On or after April 1, 2023, we may redeem some or all of the Euro Notes (2028) at the applicable redemption prices set forth in the Euro Notes (2026/28) Indenture. We may be required to make an offer to purchase the Euro Notes (2028) upon the sale of certain assets, subject to certain exceptions, and upon a change of control. In addition, in the event of certain developments affecting taxation or under certain other circumstances which, in any case, require the payment of certain additional amounts, we may redeem the Euro Notes (2028) in whole, but not in part, at any time at a redemption price of 100% of the principal amount thereof, plus accrued but unpaid interest, if any, and such certain additional amounts, if any, to the redemption date. Restricted Payments Our senior secured credit agreement and our senior notes indentures contain limitations on payment of cash dividends or other distributions of assets. Delaware law also imposes restrictions on dividend payments. Based on limitations in effect under the senior secured credit agreement, senior notes indentures and Delaware law, the maximum amount of dividends we could have paid as of December 31, 2021 was approximately $2,850 million . The limit on the payment of dividends is calculated using historical financial information and will change from period to period. These restrictions did not impact the payment of the dividend declared in October 2021 and paid in December 2021 and are not expected to impact future dividend payments. Receivables Securitization Facility On December 20, 2018, we amended the terms of our receivables securitization facility with Mitsubishi UFJ Financial Group, Inc.("MUFG") to: (i) extend the term of the facility to November 8, 2021; (ii) increase the maximum amount available to $110 million; and (iii) make other clarifying and updating changes. Under the facility, LKQ sold an ownership interest in certain receivables, related collections and security interests to MUFG for the benefit of conduit investors and/or financial institutions for cash proceeds. Effective July 30, 2021, we terminated the receivables securitization facility. There was no outstanding balance under the receivables securitization facility as of December 31, 2020. Net receivables totaling $121 million were collateral for the investments under the receivables facility as of December 31, 2020. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | 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 current policies, we may use derivatives to manage our exposure to variable interest rates on our senior secured debt and changing foreign exchange rates for certain foreign currency denominated transactions. We do not hold or issue derivatives for trading purposes. Cash Flow Hedges Through June 30, 2021, we held interest rate swap agreements to hedge a portion of the variable interest rate risk on the 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 paid the fixed interest rate and received payment at a variable rate of interest based on LIBOR for the respective currency of each interest rate swap agreement’s notional amount. Changes in the fair value of the interest rate swap agreements were recorded in Accumulated other comprehensive income (loss) and were reclassified to Interest expense when the underlying interest payment impacted earnings. At December 31, 2020, we held cross currency swaps, which contained an interest rate swap component and a foreign currency forward contract component that, combined with related intercompany financing arrangements, effectively converted variable rate U.S. dollar-denominated borrowings into fixed rate euro-denominated borrowings. The swaps were intended to minimize the impact of fluctuating exchange rates and interest rates on the cash flows resulting from the related intercompany financing arrangements. Changes in the fair value of the derivative instruments were recorded in Accumulated other comprehensive income (loss) and were reclassified to Interest expense and Interest income and Other (income) expense, net when the underlying transactions had an impact on earnings. From time to time, we may hold foreign currency forward contracts related to certain foreign currency denominated intercompany transactions, with the objective of minimizing the impact of fluctuating exchange rates on these future cash flows. Under the terms of the foreign currency forward contracts, we will sell the foreign currency in exchange for U.S. dollars at a fixed rate on the maturity dates of the contracts. Changes in the fair value of the foreign currency forward contracts where hedge accounting is applied are recorded in Accumulated other comprehensive income (loss) and reclassified to Other (income) expense, net when the underlying transaction has an impact on earnings. As of December 31, 2021, we held no cash flow hedges, and as of December 31, 2020, we held cash flow hedges with the following notional amounts (in thousands): December 31, 2020 Interest rate swap agreements USD denominated $ 480,000 Cross currency swap agreements Euro denominated € 340,000 Foreign currency forward contracts SEK denominated kr 227,000 The following tables summarize the fair values of the designated cash flow hedges as of December 31, 2020 (in thousands): Fair Value at December 31, 2020 Other Accrued Expenses Interest rate swap agreements $ 899 Cross currency swap agreements 56,328 Foreign currency forward contracts 1,350 Total cash flow hedges $ 58,577 While certain derivative instruments executed with the same counterparty were subject to master netting arrangements, we present our cash flow hedge derivative instruments on a gross basis on the Consolidated Balance Sheets. The impact of netting the fair values of these contracts would have no effect on the Consolidated Balance Sheet at December 31, 2020. The activity related to the cash flow hedges is included in Note 8, "Accumulated Other Comprehensive Income (Loss)." The activity related to the cash flow hedges is presented in either operating activities or financing activities in our Consolidated Statements of Cash Flows. Other Derivative Instruments Not Designated as Hedges To manage foreign currency exposure on non-functional currency denominated borrowings, we entered into short term foreign currency forward contracts. As of December 31, 2021, we held no foreign currency forward contracts related to non-functional currency denominated borrowings. At December 31, 2020, the notional amounts of foreign currency forward contracts related to non-functional currency denominated borrowings were €142 million and £75 million. We elected not to apply hedge accounting for these transactions, and therefore the contracts were adjusted to fair value through the results of operations as of each balance sheet date. The fair values of these short-term derivative instruments were recorded in either Prepaid expenses and other current assets or Other accrued expenses on the Consolidated Balance Sheets. The fair values of these contracts at December 31, 2020, along with the effect on the results of operations during the years ended December 31, 2021 and 2020, were immaterial. We hold other short-term derivative instruments, including foreign currency forward contracts, to manage our exposure to variability in the cash flows related to inventory purchases denominated in a non-functional currency. We have elected not to apply hedge accounting for these transactions. The notional amount and fair value of these contracts as of December 31, 2021 and 2020, along with the effect on the results of operations, were immaterial. |
Fair Value Measurements (Notes)
Fair Value Measurements (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value We use the market and income approaches to estimate the fair value of our financial assets and liabilities, and during the year ended December 31, 2021, there were no significant changes in valuation techniques or inputs related to the financial assets or liabilities that we have historically recorded at fair value. The tiers in the fair value hierarchy include: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as significant unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following tables present information about our financial 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 December 31, 2021 and December 31, 2020 (in thousands): Balance as of December 31, 2021 Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Liabilities: Contingent consideration liabilities $ 17,694 $ — $ — $ 17,694 Deferred compensation liabilities 88,961 — 88,961 — Total Liabilities $ 106,655 $ — $ 88,961 $ 17,694 Balance as of December 31, 2020 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Liabilities: Contingent consideration liabilities $ 13,263 $ — $ — $ 13,263 Interest rate swaps 899 — 899 — Deferred compensation liabilities 76,240 — 76,240 — Cross currency swap agreements 56,328 — 56,328 — Foreign currency forward contracts 5,190 — 5,190 — Total Liabilities $ 151,920 $ — $ 138,657 $ 13,263 Plan investments in corporate-owned life insurance, which are intended to fund the deferred compensation liabilities, are recorded at their cash surrender value, not fair value, and therefore are not included above. The cash surrender value of life insurance assets was $90 million and $72 million as of December 31, 2021 and 2020, respectively. The current portion of contingent consideration liabilities is included in Other current liabilities on the Consolidated Balance Sheets; the noncurrent portion of deferred compensation liabilities and contingent consideration liabilities is included in Other noncurrent liabilities on the Consolidated Balance Sheets based on the expected timing of the related payments. The balance sheet classification of the interest rate swaps, cross currency swap agreements, and foreign currency forward contracts is presented in Note 10, "Derivative Instruments and Hedging Activities." Our Level 2 liabilities are valued using inputs from third parties and market observable data. We obtain valuation data for the deferred compensation liabilities from third party sources, which use quoted market prices, investment allocations and reportable trades. We value other derivative instruments using a third party valuation model that performs a discounted cash flow analysis based on the terms of the contracts and market observable inputs such as current and forward interest rates and current and forward foreign exchange rates. Our contingent consideration liabilities are related to our business acquisitions. Under the terms of the contingent consideration agreements, payments may be made at specified future dates depending on the performance of the acquired business subsequent to the acquisition. The liabilities for these payments are classified as Level 3 liabilities because the related fair value measurement, which is determined using an income approach, includes significant inputs not observable in the market. We also have equity investments recorded in Other noncurrent assets that are reported at fair value. We have used net asset value as a practical expedient to value these equity investments and thus they are excluded from the fair value hierarchy disclosure. Financial Assets and Liabilities Not Measured at Fair Value Our debt is reflected on the Consolidated Balance Sheets at cost. Based on market conditions as of both December 31, 2021 and 2020, the fair value of the credit agreement borrowings reasonably approximated the carrying values of $1,887 million and $967 million, respectively. As of December 31, 2021 and 2020, the fair values of the Euro Notes (2024) were approximately $605 million and $662 million, respectively, compared to carrying values of $569 million and $611 million, respectively. As of December 31, 2020, the fair value of the Euro Notes (2026) was $939 million compared to a carrying value of $916 million. The Euro Notes (2026) were paid off in 2021 and therefore were no longer outstanding as of December 31, 2021. As of |
Leases (Notes)
Leases (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases [Text Block] | Leases We lease certain warehouses, distribution centers, retail stores, office space, land, vehicles and equipment. We determine if an arrangement is a lease at contract inception with lease right-of-use ("ROU") assets and lease liabilities being recognized based on the present value of the future minimum lease payments over the lease term at the commencement date. In determining the present value of future lease payments, we use the incremental borrowing rate based on the information available at commencement date when the implicit rate is not readily determinable. We determine the incremental borrowing rate by analyzing yield curves with consideration of lease term, country and Company specific factors. In assessing the ROU asset, we include any lease prepayments and exclude lease incentives. We account for the lease and non-lease components of a contract as a single lease component and for leases with an initial term of 12 months or less, we have elected to not record an ROU asset and lease liability. In assessing the lease term, we include options to renew only when it is reasonably certain that the option will be exercised. For certain lease agreements, rental payments are adjusted periodically for inflation. Typically, these adjustments are considered variable lease costs. Other variable lease costs consist of certain non-lease components that are disclosed as lease costs due to our election of the practical expedient to combine lease and non-lease components and include items such as variable payments for utilities, property taxes, common area maintenance, sales taxes, and insurance. We guarantee the residual values for the majority of our leased vehicles. The residual values decline over the lease term to a defined percentage of original cost. In the event the lessor does not realize the residual value when a vehicle is sold, we would be responsible for a portion of the shortfall. Similarly, if the lessor realizes more than the residual value when a vehicle is sold, we would be paid the amount realized over the residual value. The amounts recorded on the Consolidated Balance Sheets as of December 31, 2021 and 2020 related to our lease agreements are as follows (in thousands): December 31, Leases Classification 2021 2020 Assets Operating lease ROU assets, net Operating lease assets, net $ 1,361,324 $ 1,353,124 Finance lease assets, net Property, plant and equipment, net 52,944 55,423 Total leased assets $ 1,414,268 $ 1,408,547 Liabilities Current Operating Current portion of operating lease liabilities $ 203,108 $ 221,811 Finance Current portion of long-term obligations 14,746 12,239 Noncurrent Operating Long-term operating lease liabilities, excluding current portion 1,209,218 1,197,963 Finance Long-term obligations, excluding current portion 36,810 45,097 Total lease liabilities $ 1,463,882 $ 1,477,110 The components of lease expense are as follows (in thousands): Year Ended December 31, Lease Cost 2021 2020 2019 Operating lease cost $ 313,378 $ 309,797 $ 317,035 Short-term lease cost 9,037 6,568 9,392 Variable lease cost 96,931 97,599 95,899 Finance lease cost Amortization of leased assets 9,780 9,876 10,277 Interest on lease liabilities 2,361 1,785 1,546 Sublease income (2,883) (2,372) (1,640) Net lease cost $ 428,604 $ 423,253 $ 432,509 The future minimum lease commitments under our leases at December 31, 2021 are as follows (in thousands): Years Ending December 31, Operating leases Finance leases (1) Total 2022 $ 292,617 $ 16,574 $ 309,191 2023 258,449 10,067 268,516 2024 218,562 8,413 226,975 2025 187,264 6,084 193,348 2026 155,141 2,972 158,113 Thereafter 748,729 20,810 769,539 Future minimum lease payments 1,860,762 64,920 1,925,682 Less: Interest 448,436 13,364 461,800 Present value of lease liabilities $ 1,412,326 $ 51,556 $ 1,463,882 (1) Amounts are included in the scheduled maturities of long-term obligations in Note 9, "Long-Term Obligations". As of December 31, 2021, we had additional minimum operating lease payments for leases that have not yet commence d of $79 million . These operating leases will commence in the nex t 18 months with lease terms of 1 to 15 years. Most of these leases have not commenced because the assets are in the process of being constructed. Other information related to leases is as follows: December 31, Lease Term and Discount Rate 2021 2020 Weighted-average remaining lease term (years) Operating leases 9.4 9.7 Finance leases 8.9 9.0 Weighted-average discount rate Operating leases 5.2 % 5.3 % Finance leases 3.5 % 3.5 % Year Ended December 31, Supplemental cash flows information (in thousands) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 286,030 $ 299,260 $ 297,712 Financing cash outflows from finance leases 13,361 11,772 11,744 Leased assets obtained in exchange for finance lease liabilities 9,860 25,049 13,326 Leased assets obtained in exchange for operating lease liabilities (1) 248,480 244,073 231,454 |
Employee Benefit Plans (Notes)
Employee Benefit Plans (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans Defined Benefit Plans We have funded and unfunded defined benefit plans covering certain employee groups in the U.S. and various European countries. Local statutory requirements govern many of our European plans. The defined benefit plans are mostly closed to new participants and, in some cases, existing participants no longer accrue benefits. On June 28, 2019, we approved an amendment to terminate our U.S. Plan and to freeze all related benefit accruals, effective June 30, 2019. U.S. Plan participants were able to receive their full accrued benefits from plan assets by electing either lump sum distributions or annuity contracts with a qualifying third-party annuity provider. The resulting settlement effect of the U.S. Plan termination was determined based on prevailing market conditions, the lump sum offer participation rate of eligible participants, the actual lump sum distributions, and annuity purchase rates at the date of distribution. As a result of these elections, subsequent payments and annuity purchase cost to settle the plan obligations, we reclassified $6 million of unrealized loss from Accumulated other comprehensive loss to Interest income and other income, net in our Consolidated Statements of Income during the year ended December 31, 2020 to reflect the final settlement of the plan obligations. Funded Status The table below summarizes the funded status of the defined benefit plans (in thousands): December 31, 2021 2020 Change in projected benefit obligation: Projected benefit obligation - beginning of year $ 211,539 $ 225,388 Acquisitions and divestitures 643 (506) Service cost 4,645 3,565 Interest cost 1,354 2,740 Participant contributions 447 438 Actuarial (gain) / loss (11,251) 10,662 Benefits paid (1) (4,815) (6,841) Settlement (2) (1,815) (40,565) Transfers 6,300 — Currency impact (12,764) 16,658 Projected benefit obligation - end of year $ 194,283 $ 211,539 Change in fair value of plan assets: Fair value - beginning of year $ 58,962 $ 83,305 Actual return on plan assets 2,103 3,663 Employer contributions 5,017 14,028 Participant contributions 447 438 Benefits paid (4,666) (6,798) Settlement (2) (1,815) (40,565) Transfers 6,451 — Currency impact (3,524) 4,891 Fair value - end of year $ 62,975 $ 58,962 Funded status at end of year (liability) $ (131,308) $ (152,577) Accumulated benefit obligation $ 191,422 $ 208,712 (1) Includes amounts paid from plan assets as well as amounts paid from Company assets. (2) The 2020 amount reflects the settlement of the plan obligations for the U.S. Plan. The net amounts recognized for defined benefit plans in the Consolidated Balance Sheets were as follows (in thousands): December 31, 2021 2020 Current liabilities $ (4,816) $ (3,603) Non-current liabilities (126,492) (148,974) $ (131,308) $ (152,577) The following table summarizes the accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets (in thousands): December 31, 2021 2020 Accumulated benefit obligation $ 191,422 $ 208,712 Aggregate fair value of plan assets 62,975 58,962 The following table summarizes the projected benefit obligation and aggregate fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets (in thousands): December 31, 2021 2020 Projected benefit obligation $ 194,283 $ 211,539 Aggregate fair value of plan assets 62,975 58,962 The table below summarizes the weighted-average assumptions used to calculate the year-end benefit obligations: 2021 2020 Discount rate used to determine benefit obligation 1.0 % 0.7 % Rate of future compensation increase 1.7 % 1.8 % Net Periodic Benefit Cost The table below summarizes the components of net periodic benefit cost for the defined benefit plans (in thousands): Year Ended December 31, 2021 2020 2019 Service cost $ 4,645 $ 3,565 $ 3,592 Interest cost 1,354 2,740 4,077 Expected return on plan assets (1) (1,667) (2,129) (2,337) Amortization of actuarial loss (gain) (2) 1,703 1,272 (404) Settlement (gain) loss (54) 5,654 (378) Net periodic benefit cost $ 5,981 $ 11,102 $ 4,550 (1) We use the fair value of our plan assets to calculate the expected return on plan assets. (2) Actuarial gains and losses are amortized using a corridor approach. Gains and losses are amortized if, as of the beginning of the year, the cumulative net gain or loss exceeds 10 percent of the greater of the projected benefit obligation or the fair value of the plan assets. Gains and losses in excess of the corridor are amortized over the average remaining service period of active members expected to receive benefits under the plan or, in the case of closed plans, the expected future lifetime of the employees participating in the plan. The service cost component of net periodic benefit cost was classified in Selling, general and administrative expenses, while the other components of net periodic benefit cost were classified in Interest income and other income, net in the Consolidated Statements of Income. The table below summarizes the weighted-average assumptions used to calculate the net periodic benefit cost in the table above: 2021 2020 2019 Discount rate used to determine service cost 0.4 % 0.7 % 1.3 % Discount rate used to determine interest cost 0.8 % 1.8 % 2.5 % Rate of future compensation increase 2.0 % 2.1 % 1.8 % Expected long-term return on plan assets (1) 3.2 % 2.9 % 3.1 % (1) Our expected long-term return on plan assets is determined based on the asset allocation and estimate of future long-term returns by asset class. Assumed mortality is also a key assumption in determining benefit obligations and net periodic benefit cost. In some of the European plans, a price inflation index is also an assumption in determining benefit obligations and net periodic benefit cost. As of December 31, 2021, the pre-tax amounts recognized in Accumulated other comprehensive loss consisted of $33 million of net actuarial losses for our defined benefit plans that have not yet been recognized in net periodic benefit cost. Of this amount, we expect $1 million to be recognized as a component of net periodic benefit cost during the year ending December 31, 2022. Fair Value of Plan Assets Fair value is defined as the amount that would be received for selling an asset or paid to transfer a liability in an orderly transaction between market participants. The tiers in the fair value hierarchy include: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as significant unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Investments that are valued using net asset value ("NAV") (or its equivalent) as a practical expedient are excluded from the fair value hierarchy disclosure. The following is a description of the valuation methodologies used for assets reported at fair value. The methodologies used at December 31, 2021 and 2020 are the same. Level 3 investments: Investments in insurance contracts represent the cash surrender value of the insurance policy. These are actuarially determined amounts based on projections of future benefit payments, discount rates, and expected long-term rate of return on assets. The remaining pension assets are valued at net asset value based on the underlying assets owned by the fund administrator, minus liabilities, divided by the number of units outstanding and are included in the table below to reconcile the total investment fair value of our plan assets. For the unfunded pension plans, we pay the defined benefit plan obligations when they become due. The table below summarizes the fair value of our defined benefit plan assets by asset category within the fair value hierarchy for the funded defined benefit pension plans (in thousands): December 31, 2021 2020 Level 1 Level 2 Level 3 NAV Total Level 1 Level 2 Level 3 NAV Total Insurance contracts $ — $ — $ 41,922 $ — $ 41,922 $ — $ — $ 44,753 $ — $ 44,753 Mutual fund (1) — — — 21,053 21,053 — — — 14,209 14,209 Total investments at fair value $ — $ — $ 41,922 $ 21,053 $ 62,975 $ — $ — $ 44,753 $ 14,209 $ 58,962 (1) The underlying assets of the mutual fund valued at NAV consist of international bonds, equity, real estate and other investments. The following table summarizes the changes in fair value measurements of Level 3 investments for the defined benefit plans (in thousands): December 31, 2021 2020 Balance at beginning of year $ 44,753 $ 40,676 Actual return on plan assets: Relating to assets held at the reporting date 1,449 1,394 Purchases, sales and settlements (1,170) (992) Currency impact (3,110) 3,675 Balance at end of year $ 41,922 $ 44,753 Assets for the defined benefit pension plans in Europe are invested primarily in insurance policies. Under these contracts, we pay premiums to the insurance company, which are based on an internal actuarial analysis performed by the insurance company; the insurance company then funds the pension payments to the plan participants upon retirement. Employer Contributions and Estimated Future Benefit Payments During the year ended December 31, 2021, we contributed $5 million to our pension plans. We estimate that contributions to our pension plans during 2022 will be $5 million. The following table summarizes estimated future benefit payments as of December 31, 2021 (in thousands): Years Ending December 31, Amount 2022 $ 4,879 2023 5,248 2024 5,399 2025 5,583 2026 6,166 2027 - 2031 34,526 |
Income Taxes (Notes)
Income Taxes (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The provision for income taxes consists of the following components (in thousands): Year Ended December 31, 2021 2020 2019 Current: Federal $ 194,803 $ 155,887 $ 101,839 State 47,229 37,981 24,925 Foreign 115,656 89,123 81,081 Total current provision for income taxes $ 357,688 $ 282,991 $ 207,845 Deferred: Federal $ (2,603) $ (6,805) $ 22,173 State 433 (6,521) 6,376 Foreign (24,927) (20,167) (21,064) Total deferred (benefit) provision for income taxes $ (27,097) $ (33,493) $ 7,485 Provision for income taxes $ 330,591 $ 249,498 $ 215,330 Income taxes have been based on the following components of income from continuing operations before provision for income taxes (in thousands): Year Ended December 31, 2021 2020 2019 Domestic $ 978,226 $ 713,087 $ 616,842 Foreign 420,904 171,908 174,180 Income from continuing operations before provision for income taxes $ 1,399,130 $ 884,995 $ 791,022 The U.S. federal statutory rate is reconciled to the effective tax rate as follows: Year Ended December 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of state credits and federal tax impact 2.7 % 3.2 % 3.2 % Impact of rates on international operations 1.2 % 1.9 % 1.4 % Change in valuation allowances (0.8) % 1.7 % 1.0 % Non-deductible expenses 0.4 % 0.8 % 0.9 % Excess tax benefits from stock-based compensation (0.1) % — % (0.3) % Other, net (0.8) % (0.4) % — % Effective tax rate 23.6 % 28.2 % 27.2 % Beginning in 2018, the Tax Act imposed a new regime of taxation on foreign subsidiary earnings, GILTI. We have elected to account for GILTI in the year the tax is incurred. As part of the transition of U.S. international taxation from a worldwide tax system to a modified territorial tax system, the Tax Act imposed a one-time transition tax on the deemed repatriation of historical earnings of foreign subsidiaries as of December 31, 2017. Our transition tax liability was $42 million payable in 8 installments from 2018 through 2025. The next required installment of $3 million is recorded in Other current liabilities and the remaining $25 million is recorded in Other noncurrent liabilities on the Consolidated Balance Sheets. Undistributed earnings of our foreign subsidiaries amounted to approximately $1,151 million at December 31, 2021. Beginning in 2018, the Tax Act generally provided a 100% participation exemption from further U.S. taxation of dividends received from 10-percent or more owned foreign corporations held by U.S. corporate shareholders. Although foreign dividend income is generally exempt from U.S. federal tax in the hands of the U.S. corporate shareholders, either as a result of the participation exemption, or due to the previous taxation of such earnings under the transition tax and GILTI regime, companies must still apply the guidance of ASC 740: Income Taxes to account for the tax consequences of outside basis differences and other tax impacts of their investments in non-U.S. subsidiaries. Further, the 2017 transition tax reduced a majority of the previous outside basis differences in our foreign subsidiaries, and most of any new differences arising have extensive interaction with the GILTI regime discussed above. Based on a review of our global financing and capital expenditure requirements as of December 31, 2021, we continue to plan to permanently reinvest the undistributed earnings of our international subsidiaries. Thus, no deferred U.S. income taxes or potential foreign withholding taxes have been recorded. Due to the complexity of the new U.S. tax regime, it remains impractical to estimate the amount of deferred taxes potentially payable were such earnings to be repatriated. The significant components of the deferred tax assets and liabilities are as follows (in thousands): December 31, 2021 2020 Deferred Tax Assets: Accrued expenses and reserves $ 76,183 $ 59,241 Qualified and nonqualified retirement plans 30,567 34,143 Inventory 10,810 15,591 Accounts receivable 18,205 15,449 Interest deduction carryforwards 31,677 34,485 Stock-based compensation 7,011 5,362 Operating lease liabilities 338,359 331,327 Net operating loss carryforwards 24,690 27,538 Other 25,220 24,961 Total deferred tax assets, gross 562,722 548,097 Less: valuation allowance (45,420) (60,275) Total deferred tax assets $ 517,302 $ 487,822 Deferred Tax Liabilities: Goodwill and other intangible assets $ 238,325 $ 229,330 Property, plant and equipment 93,499 95,007 Trade name 90,968 108,883 Operating lease assets, net 322,779 317,694 Other 19,086 11,364 Total deferred tax liabilities $ 764,657 $ 762,278 Net deferred tax liability $ (247,355) $ (274,456) Deferred tax assets and liabilities are reflected on the Consolidated Balance Sheets as follows (in thousands): December 31, 2021 2020 Noncurrent deferred tax assets $ 31,941 $ 16,965 Noncurrent deferred tax liabilities 279,296 291,421 Noncurrent deferred tax assets and noncurrent deferred tax liabilities are included in Other noncurrent assets and Deferred income taxes, respectively, on the Consolidated Balance Sheets. We have net operating loss carryforwards, primarily for certain international tax jurisdictions, the tax benefits of which totaled approximately $25 million and $28 million at December 31, 2021 and 2020, respectively. At December 31, 2021 and 2020, we had tax credit carryforwards for certain U.S. state jurisdictions, the tax benefits of which totaled less than $1 million at both dates. As of December 31, 2021 and 2020, we had interest deduction carryforwards in Italy and Germany, the tax benefits of which totaled $32 million and $34 million, respectively. As of December 31, 2021 and 2020, we had a U.S. capital loss carryforward, the tax benefit of which totaled $4 million and $5 million, respectively. As of December 31, 2021 and 2020, valuation allowances of $45 million and $60 million, respectively, were recorded for deferred tax assets related to the foreign interest deduction carryforwards, the U.S. capital loss carryforward, and for certain foreign and U.S. net operating loss carryforwards. The $15 million net decrease in valuation allowances was primarily attributable to a $12 million valuation allowance release with regard to Germany interest deduction carryforwards. The net operating losses generally carry forward for an indefinite period. The interest deduction carryforwards in Italy and Germany do not expire. U.S. capital loss expires in 2022. Realization of these deferred tax assets is dependent on the generation of sufficient taxable income prior to the expiration dates, where applicable, or in the case of interest deduction carryforward, subject to legislative thin capitalization constraints, typically based on profitability. Based on historical and projected operating results, we believe that it is more likely than not that earnings will be sufficient to realize the deferred tax assets for which valuation allowances have not been provided. While we expect to realize the deferred tax assets, net of valuation allowances, changes in tax laws or in estimates of future taxable income may alter this expectation. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): 2021 2020 2019 Balance at January 1 $ 2,308 $ 2,317 $ 1,237 Additions for acquired tax positions — — 1,376 Additions based on tax positions related to the current year 5 1,147 5 Additions based on tax positions related to prior years 4,364 — 45 Reductions for tax positions of prior year (1,601) — — Lapse of statutes of limitations (332) (297) (297) Settlements with taxing authorities — (958) — Cumulative translation adjustment (222) 99 (49) Balance at December 31 $ 4,522 $ 2,308 $ 2,317 Included in the balance of unrecognized tax benefits above as of December 31, 2021, 2020 and 2019, are approximately $4 million, $2 million and $2 million, respectively, of tax benefits that, if recognized, would affect the effective tax rate. The balance of unrecognized tax benefits at December 31, 2021, 2020 and 2019, includes approximately $1 million of tax benefits that, if recognized, would result in adjustments to deferred taxes. We recognize interest and penalties accrued related to unrecognized tax benefits as income tax expense. Attributable to the unrecognized tax benefits noted above, we had accumulated interest and penalties of $1 million at December 31, 2021 and less than $1 million at December 31, 2020 and 2019, respectively. During the year ended December 31, 2021 and each of the years ended December 31, 2020 and 2019, $1 million and an immaterial amount, respectively, of interest and penalties were recorded through the income tax provision, prior to any reversals for lapses in the statutes of limitations. During the twelve months beginning January 1, 2022, it is reasonably possible that we will reduce unrecognized tax benefits by $1 million, an immaterial amount of which would impact our effective tax rate. |
Segment and Geographic Informat
Segment and Geographic Information | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment and Geographic Information | Segment and Geographic Information We have four operating segments: Wholesale – North America, Europe, Specialty and Self Service. The 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. The reportable segments are organized based on a combination of geographic areas served and type of product lines offered. The reportable segments are managed separately as each business serves different customers (i.e., geographic in the case of North America and Europe and product type in the case of Specialty) and is affected by different economic conditions. Therefore, we present three reportable segments: North America, Europe and Specialty. The following tables present our financial performance by reportable segment for the periods indicated (in thousands): North America Europe Specialty Eliminations Consolidated Year Ended December 31, 2021 Revenue: Third Party $ 5,162,639 $ 6,061,948 $ 1,863,917 $ — $ 13,088,504 Intersegment 2,181 — 3,380 (5,561) — Total segment revenue $ 5,164,820 $ 6,061,948 $ 1,867,297 $ (5,561) $ 13,088,504 Segment EBITDA $ 944,465 $ 617,825 $ 223,149 $ — $ 1,785,439 Depreciation and amortization (1) 96,914 157,406 29,683 — 284,003 Year Ended December 31, 2020 Revenue: Third Party $ 4,631,306 $ 5,492,184 $ 1,505,340 $ — $ 11,628,830 Intersegment 1,033 — 3,655 (4,688) — Total segment revenue $ 4,632,339 $ 5,492,184 $ 1,508,995 $ (4,688) $ 11,628,830 Segment EBITDA $ 778,504 $ 427,582 $ 162,673 $ — $ 1,368,759 Depreciation and amortization (1) 97,390 172,927 29,180 — 299,497 Year Ended December 31, 2019 Revenue: Third Party $ 5,208,589 $ 5,838,124 $ 1,459,396 $ — $ 12,506,109 Intersegment 705 — 4,646 (5,351) — Total segment revenue $ 5,209,294 $ 5,838,124 $ 1,464,042 $ (5,351) $ 12,506,109 Segment EBITDA $ 712,957 $ 454,220 $ 161,184 $ — $ 1,328,361 Depreciation and amortization (1) 93,747 191,195 29,464 — 314,406 (1) Amounts presented include depreciation and amortization expense recorded within Cost of goods sold and Restructuring and acquisition related expenses. The key measure of segment profit or loss reviewed by our chief operating decision maker, our Chief Executive Officer, is Segment EBITDA. We use Segment EBITDA to compare profitability among the segments and evaluate business strategies. Segment EBITDA includes revenue and expenses that are controllable by the segment. Corporate general and administrative expenses are allocated to the segments based on usage, with shared expenses apportioned based on the segment's percentage of consolidated revenue. We calculate Segment EBITDA as EBITDA excluding restructuring and acquisition related expenses (which includes restructuring expenses recorded in Cost of goods sold); change in fair value of contingent consideration liabilities; other gains and losses related to acquisitions, equity method investments, or divestitures; equity in losses and earnings of unconsolidated subsidiaries; equity investment fair value adjustments; and impairment charges. EBITDA, which is the basis for Segment EBITDA, is calculated as net income attributable to LKQ stockholders excluding discontinued operations and discontinued noncontrolling interest, depreciation, amortization, interest (which includes gains and losses on debt extinguishment) and income tax expense. The table below provides a reconciliation of Net Income to Segment EBITDA (in thousands): Year Ended December 31, 2021 2020 2019 Net income $ 1,092,124 $ 640,414 $ 545,034 Less: net income attributable to continuing noncontrolling interest 1,251 1,888 2,800 Less: net income attributable to discontinued noncontrolling interest — 103 974 Net income attributable to LKQ stockholders 1,090,873 638,423 541,260 Subtract: Net income (loss) from discontinued operations 648 (95) 1,619 Net income attributable to discontinued noncontrolling interest — (103) (974) Net income from continuing operations attributable to LKQ stockholders 1,090,225 638,621 540,615 Add: Depreciation and amortization 259,992 272,292 290,770 Depreciation and amortization - cost of goods sold 23,099 21,672 21,312 Depreciation and amortization - restructuring expenses (1) 912 5,533 2,324 Interest expense, net of interest income 70,292 101,874 136,274 Loss (gain) on debt extinguishment 23,564 12,751 (128) Provision for income taxes 330,591 249,498 215,330 EBITDA 1,798,675 1,302,241 1,206,497 Subtract: Equity in earnings (losses) of unconsolidated subsidiaries (2) 22,937 5,012 (32,277) Equity investment fair value adjustments 10,841 — — Gain due to resolution of acquisition related matter — — 12,063 Gains on bargain purchases and previously held equity interests — — 1,157 Add: Restructuring and acquisition related expenses (1) 19,399 60,630 34,658 Restructuring expenses - cost of goods sold 93 7,141 20,654 Loss on disposal of businesses and impairment of net assets held for sale (3) 28 3,174 47,102 Change in fair value of contingent consideration liabilities 1,022 585 393 Segment EBITDA $ 1,785,439 $ 1,368,759 $ 1,328,361 (1) The sum of these two captions represents the total amount that is reported in Restructuring and acquisition related expenses in the Consolidated Statements of Income. Refer to Note 5, "Restructuring and Acquisition Related Expenses," for further information. (2) Refer to "Investments in Unconsolidated Subsidiaries" in Note 3, "Summary of Significant Accounting Policies," for further information. (3) Refer to "Net Assets Held for Sale" in Note 3, "Summary of Significant Accounting Policies," for further information. The following table presents capital expenditures by reportable segment (in thousands): Year Ended December 31, 2021 2020 2019 Capital Expenditures North America $ 129,174 $ 76,300 $ 131,643 Europe 141,009 85,039 121,596 Specialty 23,283 11,356 12,491 Total capital expenditures $ 293,466 $ 172,695 $ 265,730 The following table presents assets by reportable segment (in thousands): December 31, 2021 2020 2019 Receivables, net North America $ 384,283 $ 386,289 $ 419,452 Europe 586,231 598,615 636,216 Specialty 102,258 88,485 75,464 Total receivables, net 1,072,772 1,073,389 1,131,132 Inventories North America 825,806 810,798 991,062 Europe 1,326,569 1,302,649 1,401,801 Specialty 458,140 301,165 379,914 Total inventories 2,610,515 2,414,612 2,772,777 Property, plant and equipment, net North America 628,472 583,985 610,573 Europe 576,846 583,439 538,951 Specialty 93,422 81,279 84,876 Total property, plant and equipment, net 1,298,740 1,248,703 1,234,400 Operating lease assets, net North America 762,773 755,430 768,164 Europe 515,103 520,131 457,035 Specialty 83,448 77,563 83,312 Total operating lease assets, net 1,361,324 1,353,124 1,308,511 Equity method investments North America 24,515 18,676 17,624 Europe 156,190 136,548 121,619 Total equity method investments 180,705 155,224 139,243 Other unallocated assets 6,082,098 6,115,481 6,193,893 Total assets $ 12,606,154 $ 12,360,533 $ 12,779,956 We report net receivables; inventories; net property, plant and equipment; net operating lease assets; and equity method investments by segment as that information is used by the chief operating decision maker in assessing segment performance. These assets provide a measure for the operating capital employed in each segment. Unallocated assets include cash and cash equivalents, prepaid and other current and noncurrent assets, goodwill and other intangibles. Our largest countries of operation are the U.S., followed by the U.K. and Germany. Additional European operations are located in the Netherlands, Italy, Czech Republic, Belgium, Austria, Slovakia, Poland, and other European countries. Our operations in other countries include wholesale operations in Canada, remanufacturing operations in Mexico, an aftermarket parts freight consolidation warehouse in Taiwan, and administrative support functions in India. Our net sales are attributed to geographic area based on the location of the selling operation. The following table sets forth our revenue by geographic area (in thousands): Year Ended December 31, 2021 2020 2019 Revenue United States $ 6,625,951 $ 5,755,437 $ 6,220,267 United Kingdom 1,647,865 1,460,600 1,599,074 Germany 1,621,961 1,522,529 1,578,543 Other countries 3,192,727 2,890,264 3,108,225 Total revenue $ 13,088,504 $ 11,628,830 $ 12,506,109 The following table sets forth our tangible long-lived assets by geographic area (in thousands): December 31, 2021 2020 2019 Long-lived assets United States $ 1,486,987 $ 1,419,113 $ 1,467,701 Germany 329,247 360,184 340,995 United Kingdom 304,790 315,333 330,113 Other countries 539,040 507,197 404,102 Total long-lived assets $ 2,660,064 $ 2,601,827 $ 2,542,911 |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts and Reserves (Notes) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule II - Valuation and Qualifying Accounts and Reserves [Abstract] | |
Valuation Allowances and Reserves, Balance | EXHIBITS, FINANCIAL STATEMENT SCHEDULES (a)(1) Financial Statements Reference is made to the information set forth in Part II, Item 8 of this Annual Report on Form 10-K, which information is incorporated herein by reference. (a)(2) Financial Statement Schedules Other than as set forth below, all schedules for which provision is made in the applicable accounting regulations of the SEC have been omitted because they are not required under the related instructions, are not applicable, or the information has been provided in the Consolidated Financial Statements or the notes thereto. Schedule II—Valuation and Qualifying Accounts and Reserves (in thousands) Description Balance at Beginning of Period Additions Charged to Costs and Expenses Deductions Acquisitions and Other Balance at End of Period ALLOWANCE FOR DOUBTFUL ACCOUNTS: (1) Year ended December 31, 2019 $ 57,207 $ 12,088 $ (18,308) $ 1,698 $ 52,685 (1) The 2020 and 2021 information is omitted from the table above as the information has been provided in "Allowance for Credit Losses" in Note 3, "Summary of Significant Accounting Policies," to the Consolidated Financial Statements in Part II, Item 8 of this Annual Report on Form 10-K. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Accounting Policies [Abstract] | |
Consolidation, Policy [Policy Text Block] | Principles of Consolidation The accompanying Consolidated Financial Statements include the accounts of LKQ Corporation and its subsidiaries. All intercompany transactions and accounts have been eliminated. |
Use of Estimates, Policy [Policy Text Block] | Use of Estimates The preparation of the Consolidated Financial Statements in accordance with US GAAP requires management to make certain estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the Consolidated Financial Statements and the reported amounts of revenue and expenses during the reported periods. We base our estimates on historical experience and on various other assumptions that management believes are reasonable under the circumstances including management’s current assumptions with respect to implications of the COVID-19 pandemic, the results of which form the basis for making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results and outcomes could differ from those estimates. |
Cost of Goods Sold [Policy Text Block] | Cost of Goods Sold Cost of goods sold includes: the price we pay for inventory, net of vendor discounts, rebates or other incentives; inbound freight and other transportation costs to bring inventory into our facilities; and overhead costs related to purchasing, warehousing and transporting our products from our distribution warehouses to our selling locations. For our salvage, remanufactured, and refurbished products, cost of goods sold also includes direct and indirect labor, equipment costs, depreciation, and other overhead to transform inventory into finished products suitable for sale. Cost of goods sold also includes expenses for service-type warranties and for assurance-type warranty programs. See Note 4, "Revenue Recognition" for additional information related to our warranty programs. |
Selling, General and Administrative Expenses, Policy [Policy Text Block] | Selling, General and Administrative Expenses Selling, general and administrative expenses include: personnel costs for employees in selling, general and administrative functions; costs to operate branch locations, corporate offices and back office support centers; costs to transport products from facilities to our customers; and other selling, general and administrative expenses, such as professional fees, supplies, and advertising expenses. The costs included in Selling, general and administrative expenses do not relate to inventory processing or conversion activities, and, as such, are classified below the gross margin line in the Consolidated Statements of Income. |
Cash and Cash Equivalents, Restricted Cash and Cash Equivalents, Policy [Policy Text Block] | Cash, Cash Equivalents and Restricted Cash Cash and cash equivalents include cash on hand, operating accounts, and deposits readily convertible to known amounts of cash. Restricted cash includes cash for which our ability to withdraw funds at any time is contractually limited. As of December 31, 2021 and 2020 we had no restricted cash balance in Other noncurrent assets on the Consolidated Balance Sheets. |
Receivable [Policy Text Block] | Allowance for Credit Losses Receivables, net are reported net of an allowance for credit losses. During the first quarter of 2020, we adopted ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement o f Credit Losses on Financial Instruments" ("ASU 2016-13"). Prior to the adoption of ASU 2016-13, Receivables, net were reported net of an allowance for doubtful accounts. Management evaluates the aging of customer receivable balances, the financial condition of our customers, historical trends, and macroeconomic factors to estimate the amount of customer receivables that may not be collected in the future and records a provision it believes is appropriate. Our reserve for expected lifetime credit losses was $53 million and $70 million at December 31, 2021 and 2020, respectively. The provision for credit losses was a benefit of $5 million, and expense of $25 million and $12 million for the years ended December 31, 2021, 2020 and 2019, respectivel y. The benefit in the provision for credit losses for the year ended December 31, 2021 is attributable primarily to the recovery of the global economy from the effects of the COVID-19 pandemic. A roll-forward of our allowance for credit losses is as follows (in thousands): Allowance for Credit Losses Balance as of January 1, 2020 $ 52,685 Adjustment for adoption of new standard 2,519 Provision for credit losses 24,686 Write-offs (14,024) Impact of foreign currency 4,065 Balance as of December 31, 2020 69,931 Provision for credit losses (4,798) Write-offs (8,376) Impact of foreign currency (3,267) Balance as of December 31, 2021 $ 53,490 |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | Concentrations of Credit Risk Financial instruments that potentially subject us to significant concentration of credit risk consist primarily of cash and cash equivalents and accounts receivable. We control our exposure to credit risk associated with these instruments by (i) placing cash and cash equivalents with several major financial institutions; (ii) holding high-quality financial instruments; and (iii) maintaining strict policies over credit extension that include credit evaluations, credit limits and monitoring procedures. In addition, our overall credit risk with respect to accounts receivable is limited to some extent because our customer base is composed of a large number of geographically diverse customers. |
Inventory | Inventories Our inventory is classified into the following categories: (i) aftermarket and refurbished products, (ii) salvage and remanufactured products, and (iii) manufactured products. An aftermarket product is a new vehicle product manufactured by a company other than the original equipment manufacturer. For the aftermarket products, excluding aftermarket automotive glass products, cost is established based on the average price paid for parts; for the aftermarket automotive glass products, cost is established using the first-in first-out method. Inventory cost for aftermarket products includes expenses incurred for freight in and overhead costs; for items purchased from foreign companies, import fees and duties and transportation insurance are also included. Refurbished products are parts that require cosmetic repairs, such as wheels, bumper covers and lights; LKQ will apply new parts, products or materials to these parts in order to produce the finished product. Refurbished inventory cost is based upon the average price we pay for cores, which are recycled automotive parts that are not suitable for sale as a replacement part without further processing. The cost of refurbished inventory also includes expenses incurred for freight in, labor and other overhead costs. A salvage product is a recycled vehicle part suitable for sale as a replacement part. Cost is established based upon the price we pay for a vehicle, including auction, storage and towing fees, as well as expenditures for buying and dismantling the vehicle. Inventory carrying value is determined using the average cost to sales percentage at each of our facilities and applying that percentage to the facility's inventory at expected selling prices, the assessment of which incorporates the sales probability based on a part's number of days in stock and historical demand. The average cost to sales percentage is derived from each facility's historical profitability for salvage vehicles. Remanufactured products are used parts that have been inspected, rebuilt, or reconditioned to restore functionality and performance, such as remanufactured engines and transmissions. Remanufactured inventory cost is based upon the price paid for cores and expenses incurred for freight in, direct manufacturing costs and other overhead costs. A manufactured product is a new vehicle product. Manufactured product inventory can be a raw material, work-in-process or finished good. Cost is established using the first-in first-out method. For all inventory, carrying value is recorded at the lower of cost or net realizable value. Net realizable value can be influenced by current anticipated demand. If actual demand is lower than our estimates, additional reductions to inventory carrying value would be necessary in the period such determination is made. Inventories consist of the following (in thousands): December 31, 2021 2020 Aftermarket and refurbished products $ 2,167,732 $ 2,025,002 Salvage and remanufactured products 405,776 368,815 Manufactured products 37,007 20,795 Total inventories $ 2,610,515 $ 2,414,612 Aftermarket and refurbished products and salvage and remanufactured products are primarily composed of finished goods. As of December 31, 2021, manufactured products inventory was composed of $27 million of raw materials, $4 million of work in process, and $5 million of finished goods. As of December 31, 2020, manufactured products inventory was composed of $16 million of raw materials, $3 million of work in process, and $2 million of finished goods. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements that extend the useful life of the related asset are capitalized. As property, plant and equipment are sold or retired, the applicable cost and accumulated depreciation are removed from the accounts and any resulting gain or loss thereon is recognized. Construction in progress consists primarily of building and land improvements at our existing facilities. Depreciation is calculated using the straight-line method over the estimated useful lives or, in the case of leasehold improvements, the term of the related lease and reasonably assured renewal periods, if shorter. The estimated useful lives are as follows: Useful Life Land improvements 10 - 20 years Buildings and improvements 20 - 40 years Machinery and equipment 3 - 20 years Computer equipment and software 3 - 10 years Vehicles and trailers 3 - 10 years Furniture and fixtures 5 - 7 years Leasehold improvements 1 - 20 years Property, plant and equipment consists of the following (in thousands): December 31, 2021 2020 Land and improvements $ 204,311 $ 200,955 Buildings and improvements 415,473 415,810 Machinery and equipment 738,962 707,674 Computer equipment and software 114,573 121,859 Vehicles and trailers 144,924 149,922 Furniture and fixtures 57,755 57,082 Leasehold improvements 349,980 314,567 Finance lease assets 101,026 99,061 2,127,004 2,066,930 Less—Accumulated depreciation (987,481) (895,149) Construction in progress 159,217 76,922 Total property, plant and equipment, net $ 1,298,740 $ 1,248,703 Depreciation expense associated with refurbishing, remanufacturing, manufacturing and furnace operations as well as distribution centers are recorded in Cost of goods sold in the Consolidated Statements of Income. Depreciation expense resulting from restructuring programs is recorded in Restructuring and acquisition related expenses. All other depreciation expense is reported in Depreciation and amortization. Total depreciation expense for the years ended December 31, 2021, 2020, and 2019 was $180 million , $180 million, and $174 million, respectively. |
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 and supplier relationships, software and other technology related assets, and covenants not to compete. Goodwill is tested for impairment at least annually. We performed annual impairment tests during the fourth quarters of 2021, 2020 and 2019. Goodwill impairment testing may also be performed on an interim basis when events or circumstances arise that may lead to impairment. The fair value estimates of our reporting units were established using weightings of the results of a discounted cash flow methodology and a comparative market multiples approach. Based on the annual goodwill impairment test performed in the fourth quarter of 2021, we determined no impairment existed as all of the reporting units had a fair value estimate which exceeded the carrying value by at least 70% . The changes in the carrying amount of goodwill by reportable segment are as follows (in thousands): North America Europe Specialty Total Balance as of January 1, 2020 $ 1,718,044 $ 2,280,901 $ 407,590 $ 4,406,535 Business acquisitions and adjustments to previously recorded goodwill (123) 419 5,291 5,587 Exchange rate effects 2,346 176,915 186 179,447 Balance as of December 31, 2020 $ 1,720,267 $ 2,458,235 $ 413,067 $ 4,591,569 Business acquisitions and adjustments to previously recorded goodwill 23,410 17,969 43,313 84,692 Reclassified to net assets held for sale — (269) — (269) Disposal of business — (479) — (479) Exchange rate effects 893 (136,353) (157) (135,617) Balance as of December 31, 2021 $ 1,744,570 $ 2,339,103 $ 456,223 $ 4,539,896 Accumulated impairment losses as of December 31, 2021 $ (33,244) $ — $ — $ (33,244) The components of other intangibles, net are as follows (in thousands): December 31, 2021 December 31, 2020 Intangible assets subject to amortization $ 664,849 $ 732,919 Indefinite-lived intangible assets Trademarks 81,300 81,300 Total $ 746,149 $ 814,219 The components of intangible assets subject to amortization are as follows (in thousands): December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Trade names and trademarks $ 514,231 $ (174,785) $ 339,446 $ 519,577 $ (152,668) $ 366,909 Customer and supplier relationships 603,621 (424,577) 179,044 617,952 (405,237) 212,715 Software and other technology related assets 345,122 (199,083) 146,039 326,988 (174,513) 152,475 Covenants not to compete 12,950 (12,630) 320 13,700 (12,880) 820 Total $ 1,475,924 $ (811,075) $ 664,849 $ 1,478,217 $ (745,298) $ 732,919 Estimated useful lives for the finite-lived intangible assets are as follows: Method of Amortization Useful Life Trade names and trademarks Straight-line 4-30 years Customer and supplier relationships Accelerated 3-20 years Software and other technology related assets Straight-line 3-15 years Covenants not to compete Straight-line 2-5 years Amortization expense for intangibles was $104 million, $119 million, and $140 million during the years ended December 31, 2021, 2020, and 2019, respectively. Estimated amortization expense for each of the five years in the period ending December 31, 2026 is $97 million, $85 million, $73 million, $65 million and $58 million, respectively. |
Impairment or Disposal of Long-Lived Assets, Policy [Policy Text Block] | Net Assets Held for Sale During 2021, we had immaterial impairment charges on net assets held for sale. During 2019 and 2020, we committed to plans to sell certain businesses in the North America and Europe segments. As a result, these businesses were classified as net assets held for sale and were required to be adjusted to the lower of fair value less cost to sell or carrying value, resulting in net impairment charges totaling $3 million for the year ended December 31, 2020. As of December 31, 2021 and 2020, assets and liabilities held for sale were immaterial. In the second quarter of 2020, we completed the sale of one of these businesses, a non-core telecommunications operation in Germany, resulting in an immaterial loss on sale (presented in Loss on disposal of businesses and impairment of net assets held for sale in the Consolidated Statements of Income). The disposed business was immaterial, generating annualized revenue of approximately $78 million during the twelve-month period ended May 31, 2020. In the third quarter of 2019, we completed the sales of two of these businesses, an aviation business in North America and a wholesale business in Bulgaria, resulting in a net $47 million impairment charge for the year ended December 31, 2019 (presented in Loss on disposal of businesses and impairment of net assets held for sale in the Consolidated Statements of Income). Excluding the Stahlgruber Czech Republic wholesale business discussed in Note 2, "Discontinued Operations," as of December 31, 2019, assets and liabilities held for sale were immaterial, and were recorded within Prepaid expenses and other current assets and Other current liabilities, respectively, on the Consolidated Balance Sheet. The disposed businesses in 2019 were immaterial, generating annualized revenue of approximately $55 million prior to the divestitures. We record the net assets of held for sale businesses at the lower of fair value less cost to sell or carrying value. Fair values were based on projected discounted cash flows and/or estimated selling prices. Management's assumptions for the discounted cash flow analyses of the businesses were based on projected revenues and profits, tax rates, capital expenditures, working capital requirements and discount rates. For businesses for which we utilized estimated selling prices to calculate the fair value, the inputs to the estimates included projected market multiples and any reasonable offers. Due to uncertainties in the estimation process, it is possible that actual results could differ from the estimates used in management's analysis. The inputs utilized in the fair value estimates are classified as Level 3 within the fair value hierarchy. The fair values of the net assets were measured on a non-recurring basis as of December 31, 2021. Impairment of Long-Lived Assets |
Equity Method Investments [Policy Text Block] | Investments in Unconsolidated Subsidiaries Our investment in unconsolidated subsidiaries was $181 million and $155 million as of December 31, 2021 and December 31, 2020, respectively. Europe Segment Our investment in unconsolidated subsidiaries in Europe was $156 million and $137 million as of December 31, 2021 and 2020, respectively. We recorded equity in earnings of $18 million and $8 million during the years ended December 31, 2021 and 2020, respectively, and equity in losses of $33 million during the year ended December 31, 2019, mainly related to the investment in Mekonomen. On December 1, 2016, we acquired a 26.5% equity interest in Mekonomen for an aggregate purchase price of $181 million. In October 2018, we acquired an additional $48 million of equity in Mekonomen at a discounted share price as part of Mekonomen's rights issue, increasing our equity interest to 26.6%. We are accounting for our interest in Mekonomen using the equity method of accounting, as this investment gives us the ability to exercise significant influence, but not control, over the investee. As of December 31, 2021, our share of the book value of Mekonomen's net assets exceeded the book value of the investment in Mekonomen by $8 million; this difference is primarily related to Mekonomen's Accumulated Other Comprehensive Income balance as of the acquisition date in 2016. We are recording our equity in the net earnings of Mekonomen on a one quarter lag. During the year ended December 31, 2019, we recognized an other-than-temporary impairment charge of $40 million, which represented the difference in the carrying value and the fair value of our investment in Mekonomen. The fair value of the investment in Mekonomen was determined using the Mekonomen share price as of the date of our impairment test. The impairment charge is recorded in Equity in earnings (losses) of unconsolidated subsidiaries in the Consolidated Statements of Income. Mekonomen announced in February 2019, March 2020, and February 2021 that the Mekonomen Board of Directors proposed no dividend payment in 2019, 2020, or 2021. In the event a dividend would be proposed, it would be payable in SEK. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at December 31, 2021 was $265 million (using the Mekonomen share price of SEK 157 as of December 31, 2021) compared to a carrying value of $145 million. |
Warranty Reserve | Warranty Reserve Some of our salvage mechanical products are sold with a standard six month warranty against defects. Additionally, some of the remanufactured engines are sold with a standard three or four year warranty against defects. We also provide a limited lifetime warranty for certain of our aftermarket products. These assurance-type warranties are not considered a separate performance obligation, and thus no transaction price is allocated to them. We record warranty costs in Cost of goods sold in our Consolidated Statements of Income. Our warranty reserve is calculated using historical claim information to project future warranty claims activity and is recorded within Other accrued expenses and Other noncurrent liabilities on our Consolidated Balance Sheets based on the expected timing of the related payments. The changes in the warranty reserve are as follows (in thousands): Warranty Reserve Balance as of January 1, 2020 $ 25,441 Warranty expense 67,365 Warranty claims (64,892) Balance as of December 31, 2020 27,914 Warranty expense 74,375 Warranty claims (72,740) Balance as of December 31, 2021 $ 29,549 |
Self Insurance Reserve [Policy Text Block] | Self-Insurance Reserves We self-insure a portion of our employee medical benefits under the terms of our employee health insurance program. We purchase certain stop-loss insurance to limit our liability exposure. We also self-insure a portion of our property and casualty risk, which includes automobile liability, general liability, directors and officers liability, workers' compensation, and property coverage, under deductible insurance programs. The insurance premium costs are expensed over the contract periods. A reserve for liabilities associated with these losses is established for claims filed and claims incurred but not yet reported based upon our estimate of the ultimate cost, which is calculated using an analysis of historical data. We monitor new claim and claim developments as well as trends related to the claims incurred but not reported in order to assess the adequacy of our insurance reserves. Total self-insurance reserves were $117 million and $110 million, of which $61 million and $55 million was classified as current, as of December 31, 2021 and 2020, respectively, and are classified as Other accrued expenses on the Consolidated Balance Sheets. The remaining balances of self-insurance reserves are classified as Other noncurrent liabilities, which reflects management's estimates of when claims will be paid. We had outstanding letters of credit of $69 million and $71 million at December 31, 2021 and 2020, respectively, to guarantee self-insurance claims payments. While we do not expect the amounts ultimately paid to differ significantly from the estimates, the insurance reserves and corresponding expenses could be affected if future claims experience differs significantly from historical trends and assumptions. |
Commitments and Contingencies, Policy [Policy Text Block] | 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. |
Government Assistance | Government Assistance During the years ended December 31, 2021 and 2020, we recorded financial assistance from foreign governments, primarily in the form of grants, as credits in the following amounts (in thousands): Year Ended December 31, 2021 2020 Cost of goods sold $ 547 $ 1,422 Selling, general and administrative expenses 15,419 50,647 Total government assistance $ 15,966 $ 52,069 During the years ended December 31, 2021 and 2020, we received grants from European governments of $11 million and $43 million, respectively, with the remaining amounts relating to Canada. Financial assistance received from governments is recorded during the period in which we incur the costs that the assistance is intended to offset (and only if it is probable that we will meet the conditions required under the terms of the assistance). |
Stockholders' Equity, Policy [Policy Text Block] | Stockholders' Equity Treasury Stock On October 25, 2018, our Board of Directors authorized a stock repurchase program under which we may purchase up to $500 million of our common stock from time to time through October 25, 2021. On October 25, 2019, our Board of Directors authorized an increase to our existing stock repurchase program under which the Company may purchase up to an additional $500 million of our common stock from time to time through October 25, 2022; this extended date also applied to the original repurchase program. On July 28, 2021, our Board of Directors authorized an increase to our existing stock repurchase program under which the Company may purchase up to an additional $1,000 million of our common stock from time to time through October 25, 2024; this extended date also applies to the original repurchase program, as previously extended. With the increase, the Board of Directors has authorized a total of $2,000 million of common stock repurchases. Repurchases under the program may be made in the open market or in privately negotiated transactions, with the amount and timing of repurchases depending on market conditions and corporate needs. The repurchase program does not obligate us to acquire any specific number of shares and may be suspended or discontinued at any time. Delaware law imposes restrictions on stock repurchases. Repurchased shares are accounted for as treasury stock using the cost method. During the year ended December 31, 2021, we repurchased 17.2 million shares of common stock for an aggregate price of $877 million. During the year ended December 31, 2020, we repurchased 4.1 million shares of common stock for an aggregate price of $117 million. During 2019, we repurchased 10.9 million shares of common stock for an aggregate price of $292 million. As of December 31, 2021, there was $654 million of remaining capacity under the repurchase program. Repurchased shares are accounted for as treasury stock using the cost method. Noncontrolling Interest In October 2020, we purchased all of the noncontrolling interest of a subsidiary in our North America segment for a purchase price of $10 million. This purchase resulted in a net decrease to Noncontrolling interest of $10 million and a decrease to Additional paid-in-capital of $1 million in our Consolidated Financial Statements as of December 31, 2020. In February 2020, as part of the sale of Stahlgruber's Czech Republic business, we divested the noncontrolling interest of the business, which resulted in a net decrease to Noncontrolling interest of $11 million in the Consolidated Financial Statements as of December 31, 2020. See Note 2, "Discontinued Operations," for further information. In July 2019, we purchased substantially all of the noncontrolling interest of a subsidiary acquired in connection with the Stahlgruber acquisition for a purchase price of $19 million, which included the issuance of $14 million of notes payable. This purchase resulted in a net decrease to Noncontrolling interest of $10 million and a decrease to Additional paid-in capital of $9 million in the Consolidated Financial Statements as of December 31, 2019. |
Income Tax, Policy [Policy Text Block] | Income Taxes Current income taxes are provided on income reported for financial reporting purposes, adjusted for transactions that do not enter into the computation of income taxes payable in the same year. Deferred income taxes are provided for temporary differences between the tax bases of assets and liabilities and their reported amounts in the financial statements. A valuation allowance is provided for deferred tax assets if it is more likely than not that these items will either expire before we are able to realize their benefit or that future deductibility is uncertain. Provision is made for taxes on undistributed earnings of foreign subsidiaries and related companies to the extent that such earnings are not deemed to be permanently invested. We recognize the benefits of uncertain tax positions taken or expected to be taken in tax returns in the provision for income taxes only for those positions that are more likely than not to be realized. We follow a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement. We consider many factors when evaluating and estimating our tax positions and tax benefits, which may require periodic adjustments and which may not accurately forecast actual outcomes. Our policy is to include any interest and penalties associated with income tax obligations in income tax expense. |
Foreign Currency Transactions and Translations Policy [Policy Text Block] | Foreign Currency Translation For most of our foreign operations, the local currency is the functional currency. Assets and liabilities are translated into U.S. dollars at the period-ending exchange rate. Statements of Income amounts are translated to U.S. dollars using monthly average exchange rates during the period. Translation gains and losses are reported as a component of Accumulated other comprehensive income (loss) in stockholders' equity. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted Accounting Pronouncements In the first quarter of 2021, we adopted ASU No. 2019-12, "Income Taxes" (Topic 740) ("ASU 2019-12"), which simplifies the accounting for income taxes and adds guidance to reduce complexity in certain areas. We adopted the standard using the prospective approach and adoption of this accounting standard did not have a material impact on our Consolidated Financial Statements. |
Revenue Recognition Revenue R_2
Revenue Recognition Revenue Recognition (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Revenue Recognition [Abstract] | |
Revenue from Contract with Customer [Text Block] | Revenue Recognition The majority of our revenue is derived from the sale of vehicle parts. We recognize revenue for the sale of products at the point in time when the performance obligation has been satisfied and control has transferred to the customer, which generally occurs upon shipment or delivery to a customer based on terms of the sale. Sources of Revenue We report revenue in two categories: (i) parts and services and (ii) other. The following table sets forth revenue by category, with parts and services revenue further disaggregated by reportable segment (in thousands): Year Ended December 31, 2021 2020 2019 North America $ 4,243,203 $ 3,988,214 $ 4,600,903 Europe 6,033,396 5,470,159 5,817,547 Specialty 1,863,917 1,505,340 1,459,396 Parts and services 12,140,516 10,963,713 11,877,846 Other 947,988 665,117 628,263 Total revenue $ 13,088,504 $ 11,628,830 $ 12,506,109 Parts and Services Parts revenue is generated from the sale of vehicle products including replacement parts, components and systems used in the repair and maintenance of vehicles and specialty products and accessories to improve the performance, functionality and appearance of vehicles. Services revenue includes (i) additional services that are generally billed concurrently with the related product sales, such as the sale of service-type warranties, (ii) fees for admission to our self service yards, and (iii) diagnostic and repair services. In North America, vehicle replacement products include sheet metal collision parts such as doors, hoods, and fenders; bumper covers; head and tail lamps; automotive glass products such as windshields; mirrors and grilles; wheels; and large mechanical items such as engines and transmissions. In Europe, vehicle replacement products include a wide variety of small mechanical products such as brake pads, discs and sensors; clutches; electrical products such as spark plugs and batteries; steering and suspension products; filters; and oil and automotive fluids. In Specialty operations, we serve seven product segments: truck and off-road; speed and performance; recreational vehicles; towing; wheels, tires and performance handling; marine; and miscellaneous accessories. Our service-type warranties typically have service periods ranging from 6 months to 36 months. Under FASB Accounting Standards Codification Topic 606 ("ASC 606"), proceeds from these service-type warranties are deferred at contract inception and amortized on a straight-line basis to revenue over the contract period. The changes in deferred service-type warranty revenue are as follows (in thousands): Service-Type Warranties Balance as of January 1, 2020 $ 27,067 Additional warranty revenue deferred 43,214 Warranty revenue recognized (44,659) Balance as of December 31, 2020 25,622 Additional warranty revenue deferred 70,561 Warranty revenue recognized (64,526) Balance as of December 31, 2021 $ 31,657 Other Revenue Revenue from other sources includes sales of scrap and precious metals (platinum, palladium, and rhodium), bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from furnace operations. We derive scrap metal and other precious metals from several sources, including vehicles that have been used in both our wholesale and self service recycling operations and from OEMs and other entities that contract with us for secure disposal of "crush only" vehicles. Revenue from the sale of hulks in wholesale and self service recycling operations is recognized based on a price per ton of delivered material when the customer (processor) collects the scrap. Some adjustments may occur when the customer weighs the scrap at their location, and revenue is adjusted accordingly. Revenue by Geographic Area See Note 15, "Segment and Geographic Information" for information related to our revenue by geographic region. Variable Consideration The amount of revenue ultimately received from the customer can vary due to variable consideration including returns, discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, or other similar items. We utilize the “expected value method” or the “most likely amount” method in order to estimate variable consideration, depending on the type of variable consideration, with contemplation of any expected reversals in revenue. We recorded a refund liability and return asset for expected returns of $107 million and $58 million, respectively, as of December 31, 2021, and $102 million and $57 million, respectively, as of December 31, 2020. The refund liability is presented separately on the Consolidated Balance Sheets within current liabilities while the return asset is presented within Prepaid expenses and other current assets. Other types of variable consideration consist primarily of discounts, volume rebates, and other customer sales incentives that are recorded in Receivables, net on the Consolidated Balance Sheets. We recorded a reserve for variable consideration of $144 million and $127 million as of December 31, 2021 and 2020, respectively. While other customer incentive programs exist, we characterize them as material rights in the context of our sales transactions. We consider these programs to be immaterial to the Consolidated Financial Statements. Contract Costs Under ASC 340, "Other Assets and Deferred Costs," we have elected to recognize incremental costs of obtaining a contract (commissions earned by our sales representatives on product sales) as an expense when incurred, as we believe the amortization period of the asset would be one year or less due to the short-term nature of our contracts. Sales Taxes Sales tax amounts collected from customers for remittance to governmental authorities are presented on a net basis. Therefore, the taxes are excluded from revenue in the Consolidated Statements of Income and are shown as a current liability on the Consolidated Balance Sheets until remitted. |
Revenue [Policy Text Block] | Revenue Recognition The majority of our revenue is derived from the sale of vehicle parts. We recognize revenue for the sale of products at the point in time when the performance obligation has been satisfied and control has transferred to the customer, which generally occurs upon shipment or delivery to a customer based on terms of the sale. Sources of Revenue We report revenue in two categories: (i) parts and services and (ii) other. The following table sets forth revenue by category, with parts and services revenue further disaggregated by reportable segment (in thousands): Year Ended December 31, 2021 2020 2019 North America $ 4,243,203 $ 3,988,214 $ 4,600,903 Europe 6,033,396 5,470,159 5,817,547 Specialty 1,863,917 1,505,340 1,459,396 Parts and services 12,140,516 10,963,713 11,877,846 Other 947,988 665,117 628,263 Total revenue $ 13,088,504 $ 11,628,830 $ 12,506,109 Parts and Services Parts revenue is generated from the sale of vehicle products including replacement parts, components and systems used in the repair and maintenance of vehicles and specialty products and accessories to improve the performance, functionality and appearance of vehicles. Services revenue includes (i) additional services that are generally billed concurrently with the related product sales, such as the sale of service-type warranties, (ii) fees for admission to our self service yards, and (iii) diagnostic and repair services. In North America, vehicle replacement products include sheet metal collision parts such as doors, hoods, and fenders; bumper covers; head and tail lamps; automotive glass products such as windshields; mirrors and grilles; wheels; and large mechanical items such as engines and transmissions. In Europe, vehicle replacement products include a wide variety of small mechanical products such as brake pads, discs and sensors; clutches; electrical products such as spark plugs and batteries; steering and suspension products; filters; and oil and automotive fluids. In Specialty operations, we serve seven product segments: truck and off-road; speed and performance; recreational vehicles; towing; wheels, tires and performance handling; marine; and miscellaneous accessories. Our service-type warranties typically have service periods ranging from 6 months to 36 months. Under FASB Accounting Standards Codification Topic 606 ("ASC 606"), proceeds from these service-type warranties are deferred at contract inception and amortized on a straight-line basis to revenue over the contract period. The changes in deferred service-type warranty revenue are as follows (in thousands): Service-Type Warranties Balance as of January 1, 2020 $ 27,067 Additional warranty revenue deferred 43,214 Warranty revenue recognized (44,659) Balance as of December 31, 2020 25,622 Additional warranty revenue deferred 70,561 Warranty revenue recognized (64,526) Balance as of December 31, 2021 $ 31,657 Other Revenue Revenue from other sources includes sales of scrap and precious metals (platinum, palladium, and rhodium), bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from furnace operations. We derive scrap metal and other precious metals from several sources, including vehicles that have been used in both our wholesale and self service recycling operations and from OEMs and other entities that contract with us for secure disposal of "crush only" vehicles. Revenue from the sale of hulks in wholesale and self service recycling operations is recognized based on a price per ton of delivered material when the customer (processor) collects the scrap. Some adjustments may occur when the customer weighs the scrap at their location, and revenue is adjusted accordingly. Revenue by Geographic Area See Note 15, "Segment and Geographic Information" for information related to our revenue by geographic region. Variable Consideration The amount of revenue ultimately received from the customer can vary due to variable consideration including returns, discounts, rebates, refunds, credits, price concessions, incentives, performance bonuses, or other similar items. We utilize the “expected value method” or the “most likely amount” method in order to estimate variable consideration, depending on the type of variable consideration, with contemplation of any expected reversals in revenue. We recorded a refund liability and return asset for expected returns of $107 million and $58 million, respectively, as of December 31, 2021, and $102 million and $57 million, respectively, as of December 31, 2020. The refund liability is presented separately on the Consolidated Balance Sheets within current liabilities while the return asset is presented within Prepaid expenses and other current assets. Other types of variable consideration consist primarily of discounts, volume rebates, and other customer sales incentives that are recorded in Receivables, net on the Consolidated Balance Sheets. We recorded a reserve for variable consideration of $144 million and $127 million as of December 31, 2021 and 2020, respectively. While other customer incentive programs exist, we characterize them as material rights in the context of our sales transactions. We consider these programs to be immaterial to the Consolidated Financial Statements. Contract Costs Under ASC 340, "Other Assets and Deferred Costs," we have elected to recognize incremental costs of obtaining a contract (commissions earned by our sales representatives on product sales) as an expense when incurred, as we believe the amortization period of the asset would be one year or less due to the short-term nature of our contracts. Sales Taxes Sales tax amounts collected from customers for remittance to governmental authorities are presented on a net basis. Therefore, the taxes are excluded from revenue in the Consolidated Statements of Income and are shown as a current liability on the Consolidated Balance Sheets until remitted. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |
Warranty Reserve | Warranty Reserve Some of our salvage mechanical products are sold with a standard six month warranty against defects. Additionally, some of the remanufactured engines are sold with a standard three or four year warranty against defects. We also provide a limited lifetime warranty for certain of our aftermarket products. These assurance-type warranties are not considered a separate performance obligation, and thus no transaction price is allocated to them. We record warranty costs in Cost of goods sold in our Consolidated Statements of Income. Our warranty reserve is calculated using historical claim information to project future warranty claims activity and is recorded within Other accrued expenses and Other noncurrent liabilities on our Consolidated Balance Sheets based on the expected timing of the related payments. The changes in the warranty reserve are as follows (in thousands): Warranty Reserve Balance as of January 1, 2020 $ 25,441 Warranty expense 67,365 Warranty claims (64,892) Balance as of December 31, 2020 27,914 Warranty expense 74,375 Warranty claims (72,740) Balance as of December 31, 2021 $ 29,549 |
Equity Method Investments [Policy Text Block] | Investments in Unconsolidated Subsidiaries Our investment in unconsolidated subsidiaries was $181 million and $155 million as of December 31, 2021 and December 31, 2020, respectively. Europe Segment Our investment in unconsolidated subsidiaries in Europe was $156 million and $137 million as of December 31, 2021 and 2020, respectively. We recorded equity in earnings of $18 million and $8 million during the years ended December 31, 2021 and 2020, respectively, and equity in losses of $33 million during the year ended December 31, 2019, mainly related to the investment in Mekonomen. On December 1, 2016, we acquired a 26.5% equity interest in Mekonomen for an aggregate purchase price of $181 million. In October 2018, we acquired an additional $48 million of equity in Mekonomen at a discounted share price as part of Mekonomen's rights issue, increasing our equity interest to 26.6%. We are accounting for our interest in Mekonomen using the equity method of accounting, as this investment gives us the ability to exercise significant influence, but not control, over the investee. As of December 31, 2021, our share of the book value of Mekonomen's net assets exceeded the book value of the investment in Mekonomen by $8 million; this difference is primarily related to Mekonomen's Accumulated Other Comprehensive Income balance as of the acquisition date in 2016. We are recording our equity in the net earnings of Mekonomen on a one quarter lag. During the year ended December 31, 2019, we recognized an other-than-temporary impairment charge of $40 million, which represented the difference in the carrying value and the fair value of our investment in Mekonomen. The fair value of the investment in Mekonomen was determined using the Mekonomen share price as of the date of our impairment test. The impairment charge is recorded in Equity in earnings (losses) of unconsolidated subsidiaries in the Consolidated Statements of Income. Mekonomen announced in February 2019, March 2020, and February 2021 that the Mekonomen Board of Directors proposed no dividend payment in 2019, 2020, or 2021. In the event a dividend would be proposed, it would be payable in SEK. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at December 31, 2021 was $265 million (using the Mekonomen share price of SEK 157 as of December 31, 2021) compared to a carrying value of $145 million. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, Plant and Equipment Property, plant and equipment are recorded at cost less accumulated depreciation. Expenditures for major additions and improvements that extend the useful life of the related asset are capitalized. As property, plant and equipment are sold or retired, the applicable cost and accumulated depreciation are removed from the accounts and any resulting gain or loss thereon is recognized. Construction in progress consists primarily of building and land improvements at our existing facilities. Depreciation is calculated using the straight-line method over the estimated useful lives or, in the case of leasehold improvements, the term of the related lease and reasonably assured renewal periods, if shorter. The estimated useful lives are as follows: Useful Life Land improvements 10 - 20 years Buildings and improvements 20 - 40 years Machinery and equipment 3 - 20 years Computer equipment and software 3 - 10 years Vehicles and trailers 3 - 10 years Furniture and fixtures 5 - 7 years Leasehold improvements 1 - 20 years Property, plant and equipment consists of the following (in thousands): December 31, 2021 2020 Land and improvements $ 204,311 $ 200,955 Buildings and improvements 415,473 415,810 Machinery and equipment 738,962 707,674 Computer equipment and software 114,573 121,859 Vehicles and trailers 144,924 149,922 Furniture and fixtures 57,755 57,082 Leasehold improvements 349,980 314,567 Finance lease assets 101,026 99,061 2,127,004 2,066,930 Less—Accumulated depreciation (987,481) (895,149) Construction in progress 159,217 76,922 Total property, plant and equipment, net $ 1,298,740 $ 1,248,703 Depreciation expense associated with refurbishing, remanufacturing, manufacturing and furnace operations as well as distribution centers are recorded in Cost of goods sold in the Consolidated Statements of Income. Depreciation expense resulting from restructuring programs is recorded in Restructuring and acquisition related expenses. All other depreciation expense is reported in Depreciation and amortization. Total depreciation expense for the years ended December 31, 2021, 2020, and 2019 was $180 million , $180 million, and $174 million, respectively. |
Schedule Of Inventory | Inventories consist of the following (in thousands): December 31, 2021 2020 Aftermarket and refurbished products $ 2,167,732 $ 2,025,002 Salvage and remanufactured products 405,776 368,815 Manufactured products 37,007 20,795 Total inventories $ 2,610,515 $ 2,414,612 |
Schedule Of Estimated Useful Lives | The estimated useful lives are as follows: Useful Life Land improvements 10 - 20 years Buildings and improvements 20 - 40 years Machinery and equipment 3 - 20 years Computer equipment and software 3 - 10 years Vehicles and trailers 3 - 10 years Furniture and fixtures 5 - 7 years Leasehold improvements 1 - 20 years |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment consists of the following (in thousands): December 31, 2021 2020 Land and improvements $ 204,311 $ 200,955 Buildings and improvements 415,473 415,810 Machinery and equipment 738,962 707,674 Computer equipment and software 114,573 121,859 Vehicles and trailers 144,924 149,922 Furniture and fixtures 57,755 57,082 Leasehold improvements 349,980 314,567 Finance lease assets 101,026 99,061 2,127,004 2,066,930 Less—Accumulated depreciation (987,481) (895,149) Construction in progress 159,217 76,922 Total property, plant and equipment, net $ 1,298,740 $ 1,248,703 |
Schedule of Goodwill [Table Text Block] | Intangible Assets Intangible assets consist primarily of goodwill (the cost of purchased businesses in excess of the fair value of the identifiable net assets acquired) and other specifically identifiable intangible assets, such as trade names, trademarks, customer and supplier relationships, software and other technology related assets, and covenants not to compete. Goodwill is tested for impairment at least annually. We performed annual impairment tests during the fourth quarters of 2021, 2020 and 2019. Goodwill impairment testing may also be performed on an interim basis when events or circumstances arise that may lead to impairment. The fair value estimates of our reporting units were established using weightings of the results of a discounted cash flow methodology and a comparative market multiples approach. Based on the annual goodwill impairment test performed in the fourth quarter of 2021, we determined no impairment existed as all of the reporting units had a fair value estimate which exceeded the carrying value by at least 70% . The changes in the carrying amount of goodwill by reportable segment are as follows (in thousands): North America Europe Specialty Total Balance as of January 1, 2020 $ 1,718,044 $ 2,280,901 $ 407,590 $ 4,406,535 Business acquisitions and adjustments to previously recorded goodwill (123) 419 5,291 5,587 Exchange rate effects 2,346 176,915 186 179,447 Balance as of December 31, 2020 $ 1,720,267 $ 2,458,235 $ 413,067 $ 4,591,569 Business acquisitions and adjustments to previously recorded goodwill 23,410 17,969 43,313 84,692 Reclassified to net assets held for sale — (269) — (269) Disposal of business — (479) — (479) Exchange rate effects 893 (136,353) (157) (135,617) Balance as of December 31, 2021 $ 1,744,570 $ 2,339,103 $ 456,223 $ 4,539,896 Accumulated impairment losses as of December 31, 2021 $ (33,244) $ — $ — $ (33,244) |
Schedule of Finite-Lived and Indefinite-Lived Intangibles [Table Text Block] | The components of other intangibles, net are as follows (in thousands): December 31, 2021 December 31, 2020 Intangible assets subject to amortization $ 664,849 $ 732,919 Indefinite-lived intangible assets Trademarks 81,300 81,300 Total $ 746,149 $ 814,219 |
Schedule of Estimated Useful Lives, Finite Lived Intangible Assets [Table Text Block] | stimated useful lives for the finite-lived intangible assets are as follows: Method of Amortization Useful Life Trade names and trademarks Straight-line 4-30 years Customer and supplier relationships Accelerated 3-20 years Software and other technology related assets Straight-line 3-15 years Covenants not to compete Straight-line 2-5 years |
Components Of Other Intangibles | The components of intangible assets subject to amortization are as follows (in thousands): December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Trade names and trademarks $ 514,231 $ (174,785) $ 339,446 $ 519,577 $ (152,668) $ 366,909 Customer and supplier relationships 603,621 (424,577) 179,044 617,952 (405,237) 212,715 Software and other technology related assets 345,122 (199,083) 146,039 326,988 (174,513) 152,475 Covenants not to compete 12,950 (12,630) 320 13,700 (12,880) 820 Total $ 1,475,924 $ (811,075) $ 664,849 $ 1,478,217 $ (745,298) $ 732,919 |
Schedule of Product Warranty Liability [Table Text Block] | The changes in the warranty reserve are as follows (in thousands): Warranty Reserve Balance as of January 1, 2020 $ 25,441 Warranty expense 67,365 Warranty claims (64,892) Balance as of December 31, 2020 27,914 Warranty expense 74,375 Warranty claims (72,740) Balance as of December 31, 2021 $ 29,549 |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life [Table Text Block] | |
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 and supplier relationships, software and other technology related assets, and covenants not to compete. Goodwill is tested for impairment at least annually. We performed annual impairment tests during the fourth quarters of 2021, 2020 and 2019. Goodwill impairment testing may also be performed on an interim basis when events or circumstances arise that may lead to impairment. The fair value estimates of our reporting units were established using weightings of the results of a discounted cash flow methodology and a comparative market multiples approach. Based on the annual goodwill impairment test performed in the fourth quarter of 2021, we determined no impairment existed as all of the reporting units had a fair value estimate which exceeded the carrying value by at least 70% . The changes in the carrying amount of goodwill by reportable segment are as follows (in thousands): North America Europe Specialty Total Balance as of January 1, 2020 $ 1,718,044 $ 2,280,901 $ 407,590 $ 4,406,535 Business acquisitions and adjustments to previously recorded goodwill (123) 419 5,291 5,587 Exchange rate effects 2,346 176,915 186 179,447 Balance as of December 31, 2020 $ 1,720,267 $ 2,458,235 $ 413,067 $ 4,591,569 Business acquisitions and adjustments to previously recorded goodwill 23,410 17,969 43,313 84,692 Reclassified to net assets held for sale — (269) — (269) Disposal of business — (479) — (479) Exchange rate effects 893 (136,353) (157) (135,617) Balance as of December 31, 2021 $ 1,744,570 $ 2,339,103 $ 456,223 $ 4,539,896 Accumulated impairment losses as of December 31, 2021 $ (33,244) $ — $ — $ (33,244) The components of other intangibles, net are as follows (in thousands): December 31, 2021 December 31, 2020 Intangible assets subject to amortization $ 664,849 $ 732,919 Indefinite-lived intangible assets Trademarks 81,300 81,300 Total $ 746,149 $ 814,219 The components of intangible assets subject to amortization are as follows (in thousands): December 31, 2021 December 31, 2020 Gross Accumulated Net Gross Accumulated Net Trade names and trademarks $ 514,231 $ (174,785) $ 339,446 $ 519,577 $ (152,668) $ 366,909 Customer and supplier relationships 603,621 (424,577) 179,044 617,952 (405,237) 212,715 Software and other technology related assets 345,122 (199,083) 146,039 326,988 (174,513) 152,475 Covenants not to compete 12,950 (12,630) 320 13,700 (12,880) 820 Total $ 1,475,924 $ (811,075) $ 664,849 $ 1,478,217 $ (745,298) $ 732,919 Estimated useful lives for the finite-lived intangible assets are as follows: Method of Amortization Useful Life Trade names and trademarks Straight-line 4-30 years Customer and supplier relationships Accelerated 3-20 years Software and other technology related assets Straight-line 3-15 years Covenants not to compete Straight-line 2-5 years Amortization expense for intangibles was $104 million, $119 million, and $140 million during the years ended December 31, 2021, 2020, and 2019, respectively. Estimated amortization expense for each of the five years in the period ending December 31, 2026 is $97 million, $85 million, $73 million, $65 million and $58 million, respectively. |
Financing Receivable, Allowance for Credit Loss | A roll-forward of our allowance for credit losses is as follows (in thousands): Allowance for Credit Losses Balance as of January 1, 2020 $ 52,685 Adjustment for adoption of new standard 2,519 Provision for credit losses 24,686 Write-offs (14,024) Impact of foreign currency 4,065 Balance as of December 31, 2020 69,931 Provision for credit losses (4,798) Write-offs (8,376) Impact of foreign currency (3,267) Balance as of December 31, 2021 $ 53,490 |
Government Assistance | During the years ended December 31, 2021 and 2020, we recorded financial assistance from foreign governments, primarily in the form of grants, as credits in the following amounts (in thousands): Year Ended December 31, 2021 2020 Cost of goods sold $ 547 $ 1,422 Selling, general and administrative expenses 15,419 50,647 Total government assistance $ 15,966 $ 52,069 |
Summary of Signficant Accountin
Summary of Signficant Accounting Policies Finite-Lived Intangible Assets Acquired as Part of Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Schedule of Goodwill [Table Text Block] | Intangible Assets Intangible assets consist primarily of goodwill (the cost of purchased businesses in excess of the fair value of the identifiable net assets acquired) and other specifically identifiable intangible assets, such as trade names, trademarks, customer and supplier relationships, software and other technology related assets, and covenants not to compete. Goodwill is tested for impairment at least annually. We performed annual impairment tests during the fourth quarters of 2021, 2020 and 2019. Goodwill impairment testing may also be performed on an interim basis when events or circumstances arise that may lead to impairment. The fair value estimates of our reporting units were established using weightings of the results of a discounted cash flow methodology and a comparative market multiples approach. Based on the annual goodwill impairment test performed in the fourth quarter of 2021, we determined no impairment existed as all of the reporting units had a fair value estimate which exceeded the carrying value by at least 70% . The changes in the carrying amount of goodwill by reportable segment are as follows (in thousands): North America Europe Specialty Total Balance as of January 1, 2020 $ 1,718,044 $ 2,280,901 $ 407,590 $ 4,406,535 Business acquisitions and adjustments to previously recorded goodwill (123) 419 5,291 5,587 Exchange rate effects 2,346 176,915 186 179,447 Balance as of December 31, 2020 $ 1,720,267 $ 2,458,235 $ 413,067 $ 4,591,569 Business acquisitions and adjustments to previously recorded goodwill 23,410 17,969 43,313 84,692 Reclassified to net assets held for sale — (269) — (269) Disposal of business — (479) — (479) Exchange rate effects 893 (136,353) (157) (135,617) Balance as of December 31, 2021 $ 1,744,570 $ 2,339,103 $ 456,223 $ 4,539,896 Accumulated impairment losses as of December 31, 2021 $ (33,244) $ — $ — $ (33,244) |
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life [Table Text Block] |
Revenue Recognition Disaggregat
Revenue Recognition Disaggregation of Revenue (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |
Disaggregation of Revenue [Table Text Block] | The following table sets forth revenue by category, with parts and services revenue further disaggregated by reportable segment (in thousands): Year Ended December 31, 2021 2020 2019 North America $ 4,243,203 $ 3,988,214 $ 4,600,903 Europe 6,033,396 5,470,159 5,817,547 Specialty 1,863,917 1,505,340 1,459,396 Parts and services 12,140,516 10,963,713 11,877,846 Other 947,988 665,117 628,263 Total revenue $ 13,088,504 $ 11,628,830 $ 12,506,109 |
Revenue Recognition Product War
Revenue Recognition Product Warranty Liability (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The changes in deferred service-type warranty revenue are as follows (in thousands): Service-Type Warranties Balance as of January 1, 2020 $ 27,067 Additional warranty revenue deferred 43,214 Warranty revenue recognized (44,659) Balance as of December 31, 2020 25,622 Additional warranty revenue deferred 70,561 Warranty revenue recognized (64,526) Balance as of December 31, 2021 $ 31,657 |
Equity Incentive Plans (Tables)
Equity Incentive Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Nonvested Restricted Stock Units Activity | The following table summarizes activity related to our RSUs under the Equity Incentive Plan for the year ended December 31, 2021: Number Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2021 1,479,672 $ 31.71 Granted (2) 738,014 $ 39.22 Vested (805,529) $ 33.11 Forfeited / Canceled (55,078) $ 34.39 Unvested as of December 31, 2021 1,357,079 $ 34.85 Expected to vest after December 31, 2021 1,180,689 $ 34.84 2.6 $ 70,877 |
Schedule of Nonvested Performance-based Units Activity | The following table summarizes activity related to our PSUs under the Equity Incentive Plan for the year ended December 31, 2021: Number Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value (in thousands) (1) Unvested as of January 1, 2021 291,601 $ 29.98 Granted (2) 125,656 $ 38.31 Performance-based adjustment (3) 52,562 $ 27.72 Forfeited / Canceled (11,800) $ 31.77 Unvested as of December 31, 2021 458,019 $ 31.96 Expected to vest after December 31, 2021 447,595 $ 32.01 1.0 $ 26,869 |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | The following table sets forth the classification of total stock-based compensation expense included in the Consolidated Statements of Income for our continuing operations (in thousands): Year Ended December 31, 2021 2020 2019 Cost of goods sold $ 649 $ 506 $ 477 Selling, general and administrative expenses 33,087 28,572 27,218 Total stock-based compensation expense 33,736 29,078 27,695 Income tax benefit (7,479) (6,614) (6,227) Total stock-based compensation expense, net of tax $ 26,257 $ 22,464 $ 21,468 We did not capitalize any stock-based compensation costs during the years ended December 31, 2021, 2020, and 2019. |
Share-based Payment Arrangement, Nonvested Award, Cost [Table Text Block] | As of December 31, 2021, unrecognized compensation expense related to unvested RSUs and PSUs is expected to be recognized as follows (in thousands): Unrecognized Compensation Expense 2022 $ 21,325 2023 13,169 2024 6,040 2025 3,039 2026 177 Total unrecognized compensation expense $ 43,750 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Earnings Per Share, Basic and Diluted (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following chart sets forth the computation of earnings per share (in thousands, except per share amounts): Year Ended December 31, 2021 2020 2019 Income from continuing operations $ 1,091,476 $ 640,509 $ 543,415 Denominator for basic earnings per share—Weighted-average shares outstanding 296,836 304,640 310,155 Effect of dilutive securities: RSUs 672 362 393 PSUs 214 3 — Stock options — 1 421 Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding 297,722 305,006 310,969 Basic earnings per share from continuing operations $ 3.68 $ 2.10 $ 1.75 Diluted earnings per share from continuing operations (1) $ 3.67 $ 2.10 $ 1.75 |
Earnings Per Share Schedule o_2
Earnings Per Share Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |
Schedule of Antidilutive Securities Excluded from Computation of Earnings Per Share [Table Text Block] | The following table sets forth the number of employee stock-based compensation awards outstanding but not included in the computation of diluted earnings per share because their effect would have been antidilutive for the years ended December 31, 2021, 2020, and 2019 (in thousands): Year Ended December 31, 2021 2020 2019 Antidilutive securities: RSUs 29 673 586 Stock options — — 24 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | The components of Accumulated Other Comprehensive Income (Loss) are as follows (in thousands): Foreign Unrealized Gain (Loss) on Cash Flow Hedges Unrealized Gain (Loss) on Pension Plans Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries Accumulated Balance as of January 1, 2019 $ (177,597) $ 14,374 $ (8,075) $ (3,652) $ (174,950) Pretax income (loss) 7,083 23,850 (31,801) — (868) Income tax effect — (5,579) 8,579 — 3,000 Reclassification of unrealized gain — (35,686) (782) — (36,468) Reclassification of deferred income taxes — 8,399 145 — 8,544 Disposal of business (379) — — — (379) Other comprehensive income from unconsolidated subsidiaries — — — 236 236 Balance as of December 31, 2019 $ (170,893) $ 5,358 $ (31,934) $ (3,416) $ (200,885) Pretax income (loss) 112,695 (48,540) (9,165) — 54,990 Income tax effect — 11,559 3,058 — 14,617 Reclassification of unrealized loss — 40,359 6,926 — 47,285 Reclassification of deferred income taxes — (9,704) (1,852) — (11,556) Disposal of businesses 1,072 — — — 1,072 Other comprehensive loss from unconsolidated subsidiaries — — — (4,532) (4,532) Balance as of December 31, 2020 $ (57,126) $ (968) $ (32,967) $ (7,948) $ (99,009) Pretax (loss) income (63,477) 2,937 10,901 — (49,639) Income tax effect — (698) (3,267) — (3,965) Reclassification of unrealized (gain) loss — (1,758) 1,649 — (109) Reclassification of deferred income taxes — 481 (472) — 9 Disposal of businesses 12 — — — 12 Other comprehensive loss from unconsolidated subsidiaries — — — (429) (429) Balance as of December 31, 2021 $ (120,591) $ (6) $ (24,156) $ (8,377) $ (153,130) |
Cash Flow Hedges Reclassified to Statements of Income [Table Text Block] | The amounts of unrealized gains and losses on the Cash Flow Hedges reclassified to the Consolidated Statements of Income are as follows (in thousands): Year Ended December 31, Classification 2021 2020 2019 Unrealized (losses) gains on interest rate swaps Interest expense $ (1,188) $ (3,160) $ 5,872 Unrealized gains on cross currency swaps Interest expense 539 10,188 15,794 Unrealized gains (losses) on cross currency swaps (1) Interest income and other income, net 1,973 (38,198) 14,020 Unrealized gains (losses) on foreign currency forward contracts (1) Interest income and other income, net 434 (9,189) — Total $ 1,758 $ (40,359) $ 35,686 |
Long-Term Obligations (Tables)
Long-Term Obligations (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Schedule Of Long-Term Obligations | Long-term obligations consist of the following (in thousands): December 31, 2021 2020 Senior secured credit agreement: Term loans payable $ — $ 323,750 Revolving credit facilities 1,886,802 642,958 Euro Notes (2024) 568,500 610,800 Euro Notes (2026/28) 284,250 1,221,600 Notes payable through October 2030 at weighted average interest rates of 2.8% and 3.3%, respectively 23,318 24,526 Finance lease obligations at weighted average interest rates of 3.5% and 3.5%, respectively 51,556 57,336 Other debt at weighted average interest rates of 1.1% and 1.2%, respectively 9,405 15,706 Total debt 2,823,831 2,896,676 Less: long-term debt issuance costs (11,604) (25,225) Less: current debt issuance costs (315) (313) Total debt, net of debt issuance costs 2,811,912 2,871,138 Less: current maturities, net of debt issuance costs (34,752) (58,497) Long term debt, net of debt issuance costs $ 2,777,160 $ 2,812,641 |
Schedule of Maturities of Long-term Debt [Table Text Block] | The scheduled maturities of long-term obligations outstanding at December 31, 2021 are as follows (in thousands): Long-Term Obligations 2022 (1) $ 35,067 2023 13,820 2024 2,463,996 2025 9,580 2026 3,386 Thereafter 297,982 Total debt (2) $ 2,823,831 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Schedule of Derivative Instruments [Table Text Block] | As of December 31, 2021, we held no cash flow hedges, and as of December 31, 2020, we held cash flow hedges with the following notional amounts (in thousands): December 31, 2020 Interest rate swap agreements USD denominated $ 480,000 Cross currency swap agreements Euro denominated € 340,000 Foreign currency forward contracts SEK denominated kr 227,000 |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables present information about our financial 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 December 31, 2021 and December 31, 2020 (in thousands): Balance as of December 31, 2021 Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Liabilities: Contingent consideration liabilities $ 17,694 $ — $ — $ 17,694 Deferred compensation liabilities 88,961 — 88,961 — Total Liabilities $ 106,655 $ — $ 88,961 $ 17,694 Balance as of December 31, 2020 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Liabilities: Contingent consideration liabilities $ 13,263 $ — $ — $ 13,263 Interest rate swaps 899 — 899 — Deferred compensation liabilities 76,240 — 76,240 — Cross currency swap agreements 56,328 — 56,328 — Foreign currency forward contracts 5,190 — 5,190 — Total Liabilities $ 151,920 $ — $ 138,657 $ 13,263 |
Fair Value Option, Disclosures | The following tables summarize the fair values of the designated cash flow hedges as of December 31, 2020 (in thousands): Fair Value at December 31, 2020 Other Accrued Expenses Interest rate swap agreements $ 899 Cross currency swap agreements 56,328 Foreign currency forward contracts 1,350 Total cash flow hedges $ 58,577 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | The following tables present information about our financial 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 December 31, 2021 and December 31, 2020 (in thousands): Balance as of December 31, 2021 Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Liabilities: Contingent consideration liabilities $ 17,694 $ — $ — $ 17,694 Deferred compensation liabilities 88,961 — 88,961 — Total Liabilities $ 106,655 $ — $ 88,961 $ 17,694 Balance as of December 31, 2020 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Liabilities: Contingent consideration liabilities $ 13,263 $ — $ — $ 13,263 Interest rate swaps 899 — 899 — Deferred compensation liabilities 76,240 — 76,240 — Cross currency swap agreements 56,328 — 56,328 — Foreign currency forward contracts 5,190 — 5,190 — Total Liabilities $ 151,920 $ — $ 138,657 $ 13,263 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Lease Term, Discount Rate, and Supplemental Cash Flow Information [Table Text Block] | Other information related to leases is as follows: December 31, Lease Term and Discount Rate 2021 2020 Weighted-average remaining lease term (years) Operating leases 9.4 9.7 Finance leases 8.9 9.0 Weighted-average discount rate Operating leases 5.2 % 5.3 % Finance leases 3.5 % 3.5 % Year Ended December 31, Supplemental cash flows information (in thousands) 2021 2020 2019 Cash paid for amounts included in the measurement of lease liabilities Operating cash outflows from operating leases $ 286,030 $ 299,260 $ 297,712 Financing cash outflows from finance leases 13,361 11,772 11,744 Leased assets obtained in exchange for finance lease liabilities 9,860 25,049 13,326 Leased assets obtained in exchange for operating lease liabilities (1) 248,480 244,073 231,454 |
Schedule of Leases [Table Text Block] | The amounts recorded on the Consolidated Balance Sheets as of December 31, 2021 and 2020 related to our lease agreements are as follows (in thousands): December 31, Leases Classification 2021 2020 Assets Operating lease ROU assets, net Operating lease assets, net $ 1,361,324 $ 1,353,124 Finance lease assets, net Property, plant and equipment, net 52,944 55,423 Total leased assets $ 1,414,268 $ 1,408,547 Liabilities Current Operating Current portion of operating lease liabilities $ 203,108 $ 221,811 Finance Current portion of long-term obligations 14,746 12,239 Noncurrent Operating Long-term operating lease liabilities, excluding current portion 1,209,218 1,197,963 Finance Long-term obligations, excluding current portion 36,810 45,097 Total lease liabilities $ 1,463,882 $ 1,477,110 |
Lease, Cost [Table Text Block] | The components of lease expense are as follows (in thousands): Year Ended December 31, Lease Cost 2021 2020 2019 Operating lease cost $ 313,378 $ 309,797 $ 317,035 Short-term lease cost 9,037 6,568 9,392 Variable lease cost 96,931 97,599 95,899 Finance lease cost Amortization of leased assets 9,780 9,876 10,277 Interest on lease liabilities 2,361 1,785 1,546 Sublease income (2,883) (2,372) (1,640) Net lease cost $ 428,604 $ 423,253 $ 432,509 |
Schedule of Maturing of Lease Liabilities [Table Text Block] | The future minimum lease commitments under our leases at December 31, 2021 are as follows (in thousands): Years Ending December 31, Operating leases Finance leases (1) Total 2022 $ 292,617 $ 16,574 $ 309,191 2023 258,449 10,067 268,516 2024 218,562 8,413 226,975 2025 187,264 6,084 193,348 2026 155,141 2,972 158,113 Thereafter 748,729 20,810 769,539 Future minimum lease payments 1,860,762 64,920 1,925,682 Less: Interest 448,436 13,364 461,800 Present value of lease liabilities $ 1,412,326 $ 51,556 $ 1,463,882 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Defined Benefit Plan Disclosure [Line Items] | |
Schedule of Expected Benefit Payments [Table Text Block] | The following table summarizes estimated future benefit payments as of December 31, 2021 (in thousands): Years Ending December 31, Amount 2022 $ 4,879 2023 5,248 2024 5,399 2025 5,583 2026 6,166 2027 - 2031 34,526 |
Schedule Of Changes In Projected Benefit Obligations And Fair Value Of Plan Assets [Table Text Block] | The table below summarizes the funded status of the defined benefit plans (in thousands): December 31, 2021 2020 Change in projected benefit obligation: Projected benefit obligation - beginning of year $ 211,539 $ 225,388 Acquisitions and divestitures 643 (506) Service cost 4,645 3,565 Interest cost 1,354 2,740 Participant contributions 447 438 Actuarial (gain) / loss (11,251) 10,662 Benefits paid (1) (4,815) (6,841) Settlement (2) (1,815) (40,565) Transfers 6,300 — Currency impact (12,764) 16,658 Projected benefit obligation - end of year $ 194,283 $ 211,539 Change in fair value of plan assets: Fair value - beginning of year $ 58,962 $ 83,305 Actual return on plan assets 2,103 3,663 Employer contributions 5,017 14,028 Participant contributions 447 438 Benefits paid (4,666) (6,798) Settlement (2) (1,815) (40,565) Transfers 6,451 — Currency impact (3,524) 4,891 Fair value - end of year $ 62,975 $ 58,962 Funded status at end of year (liability) $ (131,308) $ (152,577) Accumulated benefit obligation $ 191,422 $ 208,712 |
Schedule of Amounts Recognized in Balance Sheet [Table Text Block] | The net amounts recognized for defined benefit plans in the Consolidated Balance Sheets were as follows (in thousands): December 31, 2021 2020 Current liabilities $ (4,816) $ (3,603) Non-current liabilities (126,492) (148,974) $ (131,308) $ (152,577) |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets [Table Text Block] | The following table summarizes the accumulated benefit obligation and aggregate fair value of plan assets for pension plans with accumulated benefit obligations in excess of plan assets (in thousands): December 31, 2021 2020 Accumulated benefit obligation $ 191,422 $ 208,712 Aggregate fair value of plan assets 62,975 58,962 |
Defined Benefit Plan, Plan with Projected Benefit Obligation in Excess of Plan Assets [Table Text Block] | The following table summarizes the projected benefit obligation and aggregate fair value of plan assets for pension plans with projected benefit obligations in excess of plan assets (in thousands): December 31, 2021 2020 Projected benefit obligation $ 194,283 $ 211,539 Aggregate fair value of plan assets 62,975 58,962 |
Defined Benefit Plan, Assumptions [Table Text Block] | The table below summarizes the weighted-average assumptions used to calculate the year-end benefit obligations: 2021 2020 Discount rate used to determine benefit obligation 1.0 % 0.7 % Rate of future compensation increase 1.7 % 1.8 % The table below summarizes the weighted-average assumptions used to calculate the net periodic benefit cost in the table above: 2021 2020 2019 Discount rate used to determine service cost 0.4 % 0.7 % 1.3 % Discount rate used to determine interest cost 0.8 % 1.8 % 2.5 % Rate of future compensation increase 2.0 % 2.1 % 1.8 % Expected long-term return on plan assets (1) 3.2 % 2.9 % 3.1 % |
Equity Method Investments [Policy Text Block] | Investments in Unconsolidated Subsidiaries Our investment in unconsolidated subsidiaries was $181 million and $155 million as of December 31, 2021 and December 31, 2020, respectively. Europe Segment Our investment in unconsolidated subsidiaries in Europe was $156 million and $137 million as of December 31, 2021 and 2020, respectively. We recorded equity in earnings of $18 million and $8 million during the years ended December 31, 2021 and 2020, respectively, and equity in losses of $33 million during the year ended December 31, 2019, mainly related to the investment in Mekonomen. On December 1, 2016, we acquired a 26.5% equity interest in Mekonomen for an aggregate purchase price of $181 million. In October 2018, we acquired an additional $48 million of equity in Mekonomen at a discounted share price as part of Mekonomen's rights issue, increasing our equity interest to 26.6%. We are accounting for our interest in Mekonomen using the equity method of accounting, as this investment gives us the ability to exercise significant influence, but not control, over the investee. As of December 31, 2021, our share of the book value of Mekonomen's net assets exceeded the book value of the investment in Mekonomen by $8 million; this difference is primarily related to Mekonomen's Accumulated Other Comprehensive Income balance as of the acquisition date in 2016. We are recording our equity in the net earnings of Mekonomen on a one quarter lag. During the year ended December 31, 2019, we recognized an other-than-temporary impairment charge of $40 million, which represented the difference in the carrying value and the fair value of our investment in Mekonomen. The fair value of the investment in Mekonomen was determined using the Mekonomen share price as of the date of our impairment test. The impairment charge is recorded in Equity in earnings (losses) of unconsolidated subsidiaries in the Consolidated Statements of Income. Mekonomen announced in February 2019, March 2020, and February 2021 that the Mekonomen Board of Directors proposed no dividend payment in 2019, 2020, or 2021. In the event a dividend would be proposed, it would be payable in SEK. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at December 31, 2021 was $265 million (using the Mekonomen share price of SEK 157 as of December 31, 2021) compared to a carrying value of $145 million. |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Table Text Block] | The following table sets forth the classification of total stock-based compensation expense included in the Consolidated Statements of Income for our continuing operations (in thousands): Year Ended December 31, 2021 2020 2019 Cost of goods sold $ 649 $ 506 $ 477 Selling, general and administrative expenses 33,087 28,572 27,218 Total stock-based compensation expense 33,736 29,078 27,695 Income tax benefit (7,479) (6,614) (6,227) Total stock-based compensation expense, net of tax $ 26,257 $ 22,464 $ 21,468 We did not capitalize any stock-based compensation costs during the years ended December 31, 2021, 2020, and 2019. |
Schedule of Net Benefit Costs [Table Text Block] | The table below summarizes the components of net periodic benefit cost for the defined benefit plans (in thousands): Year Ended December 31, 2021 2020 2019 Service cost $ 4,645 $ 3,565 $ 3,592 Interest cost 1,354 2,740 4,077 Expected return on plan assets (1) (1,667) (2,129) (2,337) Amortization of actuarial loss (gain) (2) 1,703 1,272 (404) Settlement (gain) loss (54) 5,654 (378) Net periodic benefit cost $ 5,981 $ 11,102 $ 4,550 |
Schedule of Allocation of Plan Assets [Table Text Block] | The table below summarizes the fair value of our defined benefit plan assets by asset category within the fair value hierarchy for the funded defined benefit pension plans (in thousands): December 31, 2021 2020 Level 1 Level 2 Level 3 NAV Total Level 1 Level 2 Level 3 NAV Total Insurance contracts $ — $ — $ 41,922 $ — $ 41,922 $ — $ — $ 44,753 $ — $ 44,753 Mutual fund (1) — — — 21,053 21,053 — — — 14,209 14,209 Total investments at fair value $ — $ — $ 41,922 $ 21,053 $ 62,975 $ — $ — $ 44,753 $ 14,209 $ 58,962 |
Change In Fair Value Of Plan Assets Level 3 [Table Text Block] | The following table summarizes the changes in fair value measurements of Level 3 investments for the defined benefit plans (in thousands): December 31, 2021 2020 Balance at beginning of year $ 44,753 $ 40,676 Actual return on plan assets: Relating to assets held at the reporting date 1,449 1,394 Purchases, sales and settlements (1,170) (992) Currency impact (3,110) 3,675 Balance at end of year $ 41,922 $ 44,753 |
Income Taxes Income Taxes (Tabl
Income Taxes Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Schedule Of Components Of Income Tax Expense (Benefit) | The provision for income taxes consists of the following components (in thousands): Year Ended December 31, 2021 2020 2019 Current: Federal $ 194,803 $ 155,887 $ 101,839 State 47,229 37,981 24,925 Foreign 115,656 89,123 81,081 Total current provision for income taxes $ 357,688 $ 282,991 $ 207,845 Deferred: Federal $ (2,603) $ (6,805) $ 22,173 State 433 (6,521) 6,376 Foreign (24,927) (20,167) (21,064) Total deferred (benefit) provision for income taxes $ (27,097) $ (33,493) $ 7,485 Provision for income taxes $ 330,591 $ 249,498 $ 215,330 |
Schedule Of Income from Continuing Operations Before Provision for Income Taxes, Domestic and Foreign | Income taxes have been based on the following components of income from continuing operations before provision for income taxes (in thousands): Year Ended December 31, 2021 2020 2019 Domestic $ 978,226 $ 713,087 $ 616,842 Foreign 420,904 171,908 174,180 Income from continuing operations before provision for income taxes $ 1,399,130 $ 884,995 $ 791,022 |
Schedule Of Effective Income Tax Rate Reconciliation | The U.S. federal statutory rate is reconciled to the effective tax rate as follows: Year Ended December 31, 2021 2020 2019 U.S. federal statutory rate 21.0 % 21.0 % 21.0 % State income taxes, net of state credits and federal tax impact 2.7 % 3.2 % 3.2 % Impact of rates on international operations 1.2 % 1.9 % 1.4 % Change in valuation allowances (0.8) % 1.7 % 1.0 % Non-deductible expenses 0.4 % 0.8 % 0.9 % Excess tax benefits from stock-based compensation (0.1) % — % (0.3) % Other, net (0.8) % (0.4) % — % Effective tax rate 23.6 % 28.2 % 27.2 % |
Schedule Of Deferred Tax Assets and Liabilities | The significant components of the deferred tax assets and liabilities are as follows (in thousands): December 31, 2021 2020 Deferred Tax Assets: Accrued expenses and reserves $ 76,183 $ 59,241 Qualified and nonqualified retirement plans 30,567 34,143 Inventory 10,810 15,591 Accounts receivable 18,205 15,449 Interest deduction carryforwards 31,677 34,485 Stock-based compensation 7,011 5,362 Operating lease liabilities 338,359 331,327 Net operating loss carryforwards 24,690 27,538 Other 25,220 24,961 Total deferred tax assets, gross 562,722 548,097 Less: valuation allowance (45,420) (60,275) Total deferred tax assets $ 517,302 $ 487,822 Deferred Tax Liabilities: Goodwill and other intangible assets $ 238,325 $ 229,330 Property, plant and equipment 93,499 95,007 Trade name 90,968 108,883 Operating lease assets, net 322,779 317,694 Other 19,086 11,364 Total deferred tax liabilities $ 764,657 $ 762,278 Net deferred tax liability $ (247,355) $ (274,456) |
Schedule Of Deferred Tax Assets And Liabilities Classification | Deferred tax assets and liabilities are reflected on the Consolidated Balance Sheets as follows (in thousands): December 31, 2021 2020 Noncurrent deferred tax assets $ 31,941 $ 16,965 Noncurrent deferred tax liabilities 279,296 291,421 |
Schedule Of Unrecognized Tax Benefits Rollforward | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits is as follows (in thousands): 2021 2020 2019 Balance at January 1 $ 2,308 $ 2,317 $ 1,237 Additions for acquired tax positions — — 1,376 Additions based on tax positions related to the current year 5 1,147 5 Additions based on tax positions related to prior years 4,364 — 45 Reductions for tax positions of prior year (1,601) — — Lapse of statutes of limitations (332) (297) (297) Settlements with taxing authorities — (958) — Cumulative translation adjustment (222) 99 (49) Balance at December 31 $ 4,522 $ 2,308 $ 2,317 |
Segment and Geographic Inform_2
Segment and Geographic Information (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
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 Year Ended December 31, 2021 Revenue: Third Party $ 5,162,639 $ 6,061,948 $ 1,863,917 $ — $ 13,088,504 Intersegment 2,181 — 3,380 (5,561) — Total segment revenue $ 5,164,820 $ 6,061,948 $ 1,867,297 $ (5,561) $ 13,088,504 Segment EBITDA $ 944,465 $ 617,825 $ 223,149 $ — $ 1,785,439 Depreciation and amortization (1) 96,914 157,406 29,683 — 284,003 Year Ended December 31, 2020 Revenue: Third Party $ 4,631,306 $ 5,492,184 $ 1,505,340 $ — $ 11,628,830 Intersegment 1,033 — 3,655 (4,688) — Total segment revenue $ 4,632,339 $ 5,492,184 $ 1,508,995 $ (4,688) $ 11,628,830 Segment EBITDA $ 778,504 $ 427,582 $ 162,673 $ — $ 1,368,759 Depreciation and amortization (1) 97,390 172,927 29,180 — 299,497 Year Ended December 31, 2019 Revenue: Third Party $ 5,208,589 $ 5,838,124 $ 1,459,396 $ — $ 12,506,109 Intersegment 705 — 4,646 (5,351) — Total segment revenue $ 5,209,294 $ 5,838,124 $ 1,464,042 $ (5,351) $ 12,506,109 Segment EBITDA $ 712,957 $ 454,220 $ 161,184 $ — $ 1,328,361 Depreciation and amortization (1) 93,747 191,195 29,464 — 314,406 |
Reconciliation Of Segment EBITDA To Net Income Table | The table below provides a reconciliation of Net Income to Segment EBITDA (in thousands): Year Ended December 31, 2021 2020 2019 Net income $ 1,092,124 $ 640,414 $ 545,034 Less: net income attributable to continuing noncontrolling interest 1,251 1,888 2,800 Less: net income attributable to discontinued noncontrolling interest — 103 974 Net income attributable to LKQ stockholders 1,090,873 638,423 541,260 Subtract: Net income (loss) from discontinued operations 648 (95) 1,619 Net income attributable to discontinued noncontrolling interest — (103) (974) Net income from continuing operations attributable to LKQ stockholders 1,090,225 638,621 540,615 Add: Depreciation and amortization 259,992 272,292 290,770 Depreciation and amortization - cost of goods sold 23,099 21,672 21,312 Depreciation and amortization - restructuring expenses (1) 912 5,533 2,324 Interest expense, net of interest income 70,292 101,874 136,274 Loss (gain) on debt extinguishment 23,564 12,751 (128) Provision for income taxes 330,591 249,498 215,330 EBITDA 1,798,675 1,302,241 1,206,497 Subtract: Equity in earnings (losses) of unconsolidated subsidiaries (2) 22,937 5,012 (32,277) Equity investment fair value adjustments 10,841 — — Gain due to resolution of acquisition related matter — — 12,063 Gains on bargain purchases and previously held equity interests — — 1,157 Add: Restructuring and acquisition related expenses (1) 19,399 60,630 34,658 Restructuring expenses - cost of goods sold 93 7,141 20,654 Loss on disposal of businesses and impairment of net assets held for sale (3) 28 3,174 47,102 Change in fair value of contingent consideration liabilities 1,022 585 393 Segment EBITDA $ 1,785,439 $ 1,368,759 $ 1,328,361 |
Schedule Of Capital Expenditures By Reportable Segment | The following table presents capital expenditures by reportable segment (in thousands): Year Ended December 31, 2021 2020 2019 Capital Expenditures North America $ 129,174 $ 76,300 $ 131,643 Europe 141,009 85,039 121,596 Specialty 23,283 11,356 12,491 Total capital expenditures $ 293,466 $ 172,695 $ 265,730 |
Schedule Of Assets By Reportable Segment | The following table presents assets by reportable segment (in thousands): December 31, 2021 2020 2019 Receivables, net North America $ 384,283 $ 386,289 $ 419,452 Europe 586,231 598,615 636,216 Specialty 102,258 88,485 75,464 Total receivables, net 1,072,772 1,073,389 1,131,132 Inventories North America 825,806 810,798 991,062 Europe 1,326,569 1,302,649 1,401,801 Specialty 458,140 301,165 379,914 Total inventories 2,610,515 2,414,612 2,772,777 Property, plant and equipment, net North America 628,472 583,985 610,573 Europe 576,846 583,439 538,951 Specialty 93,422 81,279 84,876 Total property, plant and equipment, net 1,298,740 1,248,703 1,234,400 Operating lease assets, net North America 762,773 755,430 768,164 Europe 515,103 520,131 457,035 Specialty 83,448 77,563 83,312 Total operating lease assets, net 1,361,324 1,353,124 1,308,511 Equity method investments North America 24,515 18,676 17,624 Europe 156,190 136,548 121,619 Total equity method investments 180,705 155,224 139,243 Other unallocated assets 6,082,098 6,115,481 6,193,893 Total assets $ 12,606,154 $ 12,360,533 $ 12,779,956 |
Revenue from External Customers by Geographic Area | The following table sets forth our revenue by geographic area (in thousands): Year Ended December 31, 2021 2020 2019 Revenue United States $ 6,625,951 $ 5,755,437 $ 6,220,267 United Kingdom 1,647,865 1,460,600 1,599,074 Germany 1,621,961 1,522,529 1,578,543 Other countries 3,192,727 2,890,264 3,108,225 Total revenue $ 13,088,504 $ 11,628,830 $ 12,506,109 |
Schedule Of Tangible Long-Lived Assets By Geographic Area | The following table sets forth our tangible long-lived assets by geographic area (in thousands): December 31, 2021 2020 2019 Long-lived assets United States $ 1,486,987 $ 1,419,113 $ 1,467,701 Germany 329,247 360,184 340,995 United Kingdom 304,790 315,333 330,113 Other countries 539,040 507,197 404,102 Total long-lived assets $ 2,660,064 $ 2,601,827 $ 2,542,911 |
Discontinued Operations Results
Discontinued Operations Results Of Discontinued Operations (Details) - USD ($) $ in Thousands | 2 Months Ended | 12 Months Ended | ||||
Feb. 29, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | May 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||
Capital Expenditures | $ 293,466 | $ 172,695 | $ 265,730 | |||
Purchases under supply agreement | $ 4,000 | 30,000 | ||||
Disposal Group, Including Discontinued Operation, Income Statement Disclosures [Abstract] | ||||||
Disposal Group, Including Discontinued Operation, Revenue | $ 78,000 | |||||
Impairment on net assets of discontinued operations | 3,000 | 47,000 | ||||
Net income (loss) from discontinued operations | 648 | (95) | 1,619 | |||
Deferred income taxes | $ (27,079) | (33,827) | 7,109 | |||
DCO Footnote 3 [Abstract] | ||||||
Cash disposed as part of divestment | $ 0 | $ 6,470 | $ 0 |
Discontinued Operations (Detail
Discontinued Operations (Details) $ in Thousands, € in Millions | 2 Months Ended | 3 Months Ended | 12 Months Ended | |||||||
Feb. 29, 2020USD ($) | Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | May 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Net income (loss) from discontinued operations | $ 648 | $ (95) | $ 1,619 | |||||||
Cash disposed as part of divestment | $ 0 | 0 | 6,470 | $ 0 | ||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Purchases under supply agreement | $ 4,000 | 30,000 | ||||||||
Disposal Group, Discontinued Operations, Cash and Cash Equivalents | 0 | 0 | 0 | 6,470 | ||||||
Less: net income attributable to discontinued noncontrolling interest | 0 | 103 | 974 | |||||||
Disposal Group, Including Discontinued Operation, Revenue | $ 78,000 | |||||||||
Payments to Acquire Additional Interest in Subsidiaries | $ 10,000 | $ 19,000 | ||||||||
Notes receivable and contingent consideration receivable acquired in connection with disposal of businesses | 0 | 8,990 | $ 0 | |||||||
Noncontrolling Interest, Decrease from Deconsolidation | $ 222 | $ 11,404 | ||||||||
Stahlgruber Czech Republic Wholesale Business [Member] | ||||||||||
Proceeds from disposal of businesses, net of cash sold | € | € 14 | |||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 48.20% | 48.20% | ||||||||
Payments to Acquire Additional Interest in Subsidiaries | € | € 8 | |||||||||
Note issued to minority shareholder | € | 4 | |||||||||
Notes receivable and contingent consideration receivable acquired in connection with disposal of businesses | € | € 7 | |||||||||
Noncontrolling Interest, Decrease from Deconsolidation | $ 11,000 | |||||||||
Percentage of Business Sold | 100.00% | 100.00% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | Dec. 01, 2016USD ($) | Sep. 30, 2021 | Dec. 31, 2018USD ($) | Dec. 31, 2021USD ($)shares | Dec. 31, 2020USD ($)shares | May 31, 2020USD ($) | Dec. 31, 2019USD ($)shares | Dec. 31, 2021SEK (kr)shares | Jul. 28, 2021USD ($) | Oct. 25, 2019USD ($) | Jan. 01, 2019USD ($) | Oct. 25, 2018USD ($) |
Summary of Significant Accounting Policies [Line Items] | ||||||||||||
Operating Lease, Liability | $ 1,412,326 | |||||||||||
Operating lease assets, net | 1,361,324 | $ 1,353,124 | $ 1,308,511 | $ 1,300,000 | ||||||||
Disposal Group, Continuing Operations, Revenue | 55,000 | |||||||||||
Number of Businesses Divested | 2 | |||||||||||
Goodwill | 4,539,896 | 4,591,569 | 4,406,535 | |||||||||
Other intangibles, net | 746,149 | 814,219 | ||||||||||
Restricted cash | 0 | 0 | 5,367 | |||||||||
Self Insurance Reserve | $ 117,000 | 110,000 | ||||||||||
Amount that fair value exceeds carrying value | 70.00% | 70.00% | ||||||||||
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | ||||||||||||
Reserve for uncollectible accounts | $ 53,490 | 69,931 | 52,685 | |||||||||
Property, Plant and Equipment [Abstract] | ||||||||||||
Property, Plant and Equipment, Depreciation Methods | straight-line method | |||||||||||
Depreciation | $ 180,000 | 180,000 | 174,000 | |||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||
Amortization expense | 104,000 | 119,000 | 140,000 | |||||||||
Estimated annual amortization expense in year two | 85,000 | |||||||||||
Estimated annual amortization expense in year three | 73,000 | |||||||||||
Estimated annual amortization expense in year four | 65,000 | |||||||||||
Estimated annual amortization expense in year five | 58,000 | |||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||||||||||||
Equity method investments | 180,705 | 155,224 | 139,243 | |||||||||
Impairment of equity method investments | 0 | 0 | 41,057 | |||||||||
Equity in (losses) earnings of unconsolidated subsidiaries | $ (22,937) | $ (5,012) | $ 32,277 | |||||||||
Share Price of the Equity Method Investment | kr | kr 157 | |||||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||||||||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% | |||||||||
Self Insurance Reserve, Current | $ 61,000 | $ 55,000 | ||||||||||
Outstanding letters of credit | $ 71,000 | |||||||||||
Stock Repurchase Program, Authorized Amount | $ 2,000,000 | $ 500,000 | $ 500,000 | |||||||||
Stock Repurchased During Period, Shares | shares | 17,200,000 | 4,100,000 | 10,900,000 | |||||||||
Treasury Stock, Value | $ 1,345,949 | $ 469,105 | ||||||||||
Percentage Threshold For Uncertain Tax Positions | 50.00% | |||||||||||
Treasury Stock, Common, Shares | shares | 34,562,424 | 17,314,602 | 34,562,424 | |||||||||
Payments for Repurchase of Common Stock | $ 876,844 | $ 117,292 | $ 291,813 | |||||||||
Stock Repurchase Program Remaining Authorized Repurchases, Amount | 654,000 | |||||||||||
Goodwill, Impaired, Accumulated Impairment Loss | (33,244) | |||||||||||
Impairment of Long-Lived Assets to be Disposed of | 3,000 | 47,000 | ||||||||||
Accounts Receivable, Credit Loss Expense (Reversal) | 4,798 | (24,686) | (12,000) | |||||||||
Financing Receivable, Allowance for Credit Loss, Writeoff | (8,376) | (14,024) | ||||||||||
Foreign Currency Transaction Gain (Loss), Unrealized | (3,267) | 4,065 | ||||||||||
Cumulative Effect on Retained Earnings, before Tax | 2,519 | |||||||||||
Disposal Group, Including Discontinued Operation, Revenue | $ 78,000 | |||||||||||
Government Assistance Amount | $ 15,966 | 52,069 | ||||||||||
Deferred Tax Payments Liability CARES Act | $ 30,000 | |||||||||||
Mekonomen [Member] | ||||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||||||||||||
Equity Method Investment, Ownership Percentage | 26.60% | |||||||||||
Revolving Credit Facility [Member] | ||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||
Weighted average interest rates | 1.10% | 1.70% | 1.10% | |||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||||||||
Outstanding letters of credit | $ 69,000 | |||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | 1,194,000 | |||||||||||
ManufacturedProducts [Member] | ||||||||||||
Inventory Disclosure [Abstract] | ||||||||||||
Inventory, Raw Materials and Supplies, Gross | 27,000 | $ 16,000 | ||||||||||
Inventory, Work in Process, Gross | 4,000 | 3,000 | ||||||||||
Inventory, Finished Goods, Gross | 5,000 | 2,000 | ||||||||||
Mekonomen [Member] | ||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||
Equity Method Investments, Fair Value Disclosure | 265,000 | |||||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||||||||||||
Equity method investments | 145,000 | |||||||||||
Equity Method Investment, Ownership Percentage | 26.50% | |||||||||||
Investments in unconsolidated subsidiaries | $ 181,000 | $ 48,000 | ||||||||||
Equity Method Investment, Difference Between Carrying Amount and Underlying Equity | 8,000 | |||||||||||
Impairment of equity method investments | 40,000 | |||||||||||
Noncontrolling Interest [Member] | ||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||
Dividends Payable | 7,000 | |||||||||||
Accounting Standards Update 2016-02 [Member] | ||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||
Operating Lease, Liability | $ 1,300,000 | |||||||||||
Europe | ||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||
Operating lease assets, net | 515,103 | 520,131 | 457,035 | |||||||||
Goodwill | 2,339,103 | 2,458,235 | 2,280,901 | |||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||||||||||||
Equity method investments | 156,190 | 136,548 | 121,619 | |||||||||
Equity in (losses) earnings of unconsolidated subsidiaries | 18,000 | 8,000 | 33,000 | |||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||||||||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | |||||||||||
Government Assistance Amount | 11,000 | 43,000 | ||||||||||
NorthAmerica | ||||||||||||
Summary of Significant Accounting Policies [Line Items] | ||||||||||||
Operating lease assets, net | 762,773 | 755,430 | 768,164 | |||||||||
Goodwill | 1,744,570 | 1,720,267 | 1,718,044 | |||||||||
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures [Abstract] | ||||||||||||
Equity method investments | 24,515 | 18,676 | 17,624 | |||||||||
Equity in (losses) earnings of unconsolidated subsidiaries | 5,000 | $ (3,000) | $ 1,000 | |||||||||
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||||||||||
Goodwill, Impaired, Accumulated Impairment Loss | $ (33,244) |
Summary of Signficant Account_2
Summary of Signficant Accounting Policies Schedule of Inventory (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Product Information | |||
Inventories | $ 2,610,515 | $ 2,414,612 | $ 2,772,777 |
Aftermarket and refurbished products | |||
Product Information | |||
Inventories | 2,167,732 | 2,025,002 | |
Salvage and remanufactured products | |||
Product Information | |||
Inventories | 405,776 | 368,815 | |
ManufacturedProducts [Member] | |||
Accounting Policies [Abstract] | |||
Inventory, Raw Materials, Gross | 27,000 | 16,000 | |
Inventory, Work in Process, Gross | 4,000 | 3,000 | |
Inventory, Finished Goods, Gross | 5,000 | 2,000 | |
Product Information | |||
Inventories | $ 37,007 | $ 20,795 |
Summary of Signficant Account_3
Summary of Signficant Accounting Policies Schedule of Estimated Useful Lives (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings and improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Buildings and improvements | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 40 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Machinery and equipment | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 20 years |
Computer equipment and software | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 3 years |
Computer equipment and software | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 10 years |
Furniture and Fixtures [Member] | Minimum | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 5 years |
Furniture and Fixtures [Member] | Maximum [Member] | |
Property, Plant and Equipment [Line Items] | |
Estimated useful life | 7 years |
Summary of Signficant Account_4
Summary of Signficant Accounting Policies Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Property and equipment excluding construction in progress, gross | $ 2,127,004 | $ 2,066,930 | |
Less—Accumulated depreciation | (987,481) | (895,149) | |
Construction in Progress, Gross | 159,217 | 76,922 | |
Depreciation | 180,000 | 180,000 | $ 174,000 |
Property, Plant and Equipment, Net | 1,298,740 | 1,248,703 | $ 1,234,400 |
Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment excluding construction in progress, gross | 204,311 | 200,955 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment excluding construction in progress, gross | 415,473 | 415,810 | |
Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment excluding construction in progress, gross | 738,962 | 707,674 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment excluding construction in progress, gross | 114,573 | 121,859 | |
Vehicles And Trailers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment excluding construction in progress, gross | 144,924 | 149,922 | |
Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment excluding construction in progress, gross | 57,755 | 57,082 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment excluding construction in progress, gross | 349,980 | 314,567 | |
Finance Lease Asset [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment excluding construction in progress, gross | $ 101,026 | $ 99,061 | |
Minimum | Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Minimum | Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Minimum | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum | Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum | Vehicles And Trailers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 3 years | ||
Minimum | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 5 years | ||
Minimum | Leaseholds and Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 1 year | ||
Maximum [Member] | Land and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Maximum [Member] | Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 40 years | ||
Maximum [Member] | Machinery and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years | ||
Maximum [Member] | Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Maximum [Member] | Vehicles And Trailers [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 10 years | ||
Maximum [Member] | Furniture and Fixtures [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 7 years | ||
Maximum [Member] | Leaseholds and Leasehold Improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property, Plant and Equipment, Useful Life | 20 years |
Changes in Carrying Amount of G
Changes in Carrying Amount of Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Goodwill [Line Items] | ||
Goodwill, Impaired, Accumulated Impairment Loss | $ (33,244) | |
Amount that fair value exceeds carrying value | 70.00% | |
Goodwill [Roll Forward] | ||
Beginning balance | $ 4,591,569 | $ 4,406,535 |
Business acquisitions and adjustments to previously recorded goodwill | 84,692 | 5,587 |
Goodwill reclassified to assets held for sale | (269) | |
Goodwill, Written off Related to Sale of Business Unit | 479 | |
Exchange rate effects | (135,617) | 179,447 |
Ending balance | 4,539,896 | 4,591,569 |
Specialty | ||
Goodwill [Line Items] | ||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | |
Goodwill [Roll Forward] | ||
Beginning balance | 413,067 | 407,590 |
Business acquisitions and adjustments to previously recorded goodwill | 43,313 | 5,291 |
Goodwill reclassified to assets held for sale | 0 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Exchange rate effects | (157) | 186 |
Ending balance | 456,223 | 413,067 |
Europe | ||
Goodwill [Line Items] | ||
Goodwill, Impaired, Accumulated Impairment Loss | 0 | |
Goodwill [Roll Forward] | ||
Beginning balance | 2,458,235 | 2,280,901 |
Business acquisitions and adjustments to previously recorded goodwill | 17,969 | 419 |
Goodwill reclassified to assets held for sale | (269) | |
Goodwill, Written off Related to Sale of Business Unit | 479 | |
Exchange rate effects | (136,353) | 176,915 |
Ending balance | 2,339,103 | 2,458,235 |
NorthAmerica | ||
Goodwill [Line Items] | ||
Goodwill, Impaired, Accumulated Impairment Loss | (33,244) | |
Goodwill [Roll Forward] | ||
Beginning balance | 1,720,267 | 1,718,044 |
Business acquisitions and adjustments to previously recorded goodwill | 23,410 | (123) |
Goodwill reclassified to assets held for sale | 0 | |
Goodwill, Written off Related to Sale of Business Unit | 0 | |
Exchange rate effects | 893 | 2,346 |
Ending balance | $ 1,744,570 | $ 1,720,267 |
Components of Other Intangibles
Components of Other Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-Lived Intangible Assets | ||
Amount that fair value exceeds carrying value | 70.00% | |
Gross carrying amount | $ 1,475,924 | $ 1,478,217 |
Accumulated amortization | (811,075) | (745,298) |
Net | 664,849 | 732,919 |
Other intangibles, net | 746,149 | 814,219 |
Finite-Lived Intangible Asset, Expected Amortization, Year One | 97,000 | |
Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 514,231 | 519,577 |
Accumulated amortization | (174,785) | (152,668) |
Net | 339,446 | 366,909 |
Customer and supplier relationships | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 603,621 | 617,952 |
Accumulated amortization | (424,577) | (405,237) |
Net | 179,044 | 212,715 |
Software and technology related assets [Member] | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 345,122 | 326,988 |
Accumulated amortization | (199,083) | (174,513) |
Net | 146,039 | 152,475 |
Covenants not to compete | ||
Finite-Lived Intangible Assets | ||
Gross carrying amount | 12,950 | 13,700 |
Accumulated amortization | (12,630) | (12,880) |
Net | $ 320 | 820 |
Maximum [Member] | Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 30 years | |
Maximum [Member] | Customer and supplier relationships | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 20 years | |
Maximum [Member] | Software and technology related assets [Member] | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 15 years | |
Maximum [Member] | Covenants not to compete | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 5 years | |
Minimum | Trademarks and Trade Names [Member] | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 4 years | |
Minimum | Customer and supplier relationships | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Minimum | Software and technology related assets [Member] | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 3 years | |
Minimum | Covenants not to compete | ||
Finite-Lived Intangible Assets | ||
Finite-Lived Intangible Asset, Useful Life | 2 years | |
Trademarks [Member] | ||
Finite-Lived Intangible Assets | ||
Indefinite-lived Intangible Assets (Excluding Goodwill) | $ 81,300 | $ 81,300 |
Changes in Warranty Reserve (De
Changes in Warranty Reserve (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Warranty Reserve [Roll Forward] | ||
Beginning balance | $ 27,914 | $ 25,441 |
Warranty expense | 74,375 | 67,365 |
Warranty claims | (72,740) | (64,892) |
Ending balance | $ 29,549 | $ 27,914 |
Summary of Signficant Account_5
Summary of Signficant Accounting Policies Equity Method Investments (Details) - USD ($) $ in Thousands | Dec. 01, 2016 | Dec. 31, 2018 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Other than Temporary Impairment | $ 0 | $ 0 | $ 41,057 | ||
Equity in (losses) earnings of unconsolidated subsidiaries | (22,937) | (5,012) | 32,277 | ||
Equity method investments | 180,705 | 155,224 | 139,243 | ||
Mekonomen [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Other than Temporary Impairment | 40,000 | ||||
Payments to Acquire Equity Method Investments | $ 181,000 | $ 48,000 | |||
Equity Method Investment, Ownership Percentage | 26.50% | ||||
Equity method investments | 145,000 | ||||
Mekonomen [Member] | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity Method Investment, Ownership Percentage | 26.60% | ||||
NorthAmerica | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in (losses) earnings of unconsolidated subsidiaries | 5,000 | (3,000) | 1,000 | ||
Equity method investments | 24,515 | 18,676 | 17,624 | ||
Europe | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Equity in (losses) earnings of unconsolidated subsidiaries | 18,000 | 8,000 | 33,000 | ||
Equity method investments | $ 156,190 | $ 136,548 | $ 121,619 |
Summary of Signficant Account_6
Summary of Signficant Accounting Policies Treasury Stock (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |||||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jul. 28, 2021 | Oct. 25, 2019 | Oct. 25, 2018 | |
Treasury Stock [Abstract] | ||||||
Stock Repurchased During Period, Shares | 17.2 | 4.1 | 10.9 | |||
Stock Repurchase Program, Authorized Amount | $ 2,000,000 | $ 500,000 | $ 500,000 | |||
Payments for Repurchase of Common Stock | $ 876,844 | $ 117,292 | $ 291,813 | |||
Stock Repurchase Program Remaining Authorized Repurchases, Amount | $ 654,000 | |||||
Stock Repurchase Program, Increase In Authorized Amount | $ 1,000,000 |
Noncontrolling Interest (Detail
Noncontrolling Interest (Details) $ in Thousands, € in Millions | 3 Months Ended | 12 Months Ended | |||||||
Dec. 31, 2020USD ($) | Sep. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2020EUR (€) | Dec. 31, 2019USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2019EUR (€) | |
Noncontrolling Interest [Line Items] | |||||||||
Payments to Acquire Additional Interest in Subsidiaries | $ 10,000 | $ 19,000 | |||||||
Purchase of noncontrolling interests (see Note 3) | $ 49,520 | ||||||||
Noncontrolling Interest, Decrease from Deconsolidation | $ 222 | $ 11,404 | |||||||
Redeemable NCI, Call Option | $ 26,000 | 26,000 | € 23 | ||||||
Redeemable NCI, Put Option | 24,000 | 24,000 | € 21 | ||||||
Redeemable noncontrolling interest | 24,077 | 24,000 | 24,077 | 24,077 | 24,000 | ||||
Purchase of noncontrolling Interests | 12,088 | ||||||||
Europe | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Note issued to minority shareholder | 14,000 | ||||||||
Stahlgruber Czech Republic Wholesale Business [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Payments to Acquire Additional Interest in Subsidiaries | € | € 8 | ||||||||
Noncontrolling Interest, Decrease from Deconsolidation | $ 11,000 | ||||||||
Note issued to minority shareholder | € | € 4 | ||||||||
Noncontrolling Interest [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Purchase of noncontrolling interests (see Note 3) | 10,000 | 12,000 | 22,415 | ||||||
Noncontrolling Interest, Decrease from Deconsolidation | $ 222 | 11,404 | |||||||
Dividends Payable | 7,000 | 7,000 | |||||||
Purchase of noncontrolling Interests | $ 10,000 | 10,952 | |||||||
Noncontrolling Interest [Member] | Short Term [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Dividends Payable | 2,000 | 2,000 | |||||||
Noncontrolling Interest [Member] | Long Term [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Dividends Payable | 5,000 | 5,000 | |||||||
Additional Paid-in Capital [Member] | |||||||||
Noncontrolling Interest [Line Items] | |||||||||
Purchase of noncontrolling interests (see Note 3) | $ 9,000 | $ 18,000 | $ 27,105 | ||||||
Purchase of noncontrolling Interests | $ 1,136 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Government Assistance (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Government Assistance [Line Items] | ||
Government Assistance Amount | $ 15,966 | $ 52,069 |
Deferred Tax Payments Liability CARES Act | 30,000 | |
Europe | ||
Government Assistance [Line Items] | ||
Government Assistance Amount | 11,000 | 43,000 |
Selling, General and Administrative Expenses [Member] | ||
Government Assistance [Line Items] | ||
Government Assistance Amount | 15,419 | 50,647 |
cost of goods and services sold | ||
Government Assistance [Line Items] | ||
Government Assistance Amount | $ 547 | $ 1,422 |
Revenue Recognition Disaggreg_2
Revenue Recognition Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenue Recognition [Line Items] | |||
Deferred Service-Type Warranty Revenue | $ 31,657 | $ 25,622 | $ 27,067 |
Deferred Service-Type Revenue, Additions | 70,561 | 43,214 | |
Deferred Service-Type Revenue Recognized | (64,526) | (44,659) | |
Revenue | 13,088,504 | 11,628,830 | 12,506,109 |
Contract with Customer, Refund Liability | 107,000 | 102,000 | |
Contract with Customer, Right to Recover Product | 58,000 | 57,000 | |
Revenue, Variable Consideration Reserve | 144,000 | 127,000 | |
Specialty | |||
Revenue Recognition [Line Items] | |||
Revenue | 1,867,297 | 1,508,995 | 1,464,042 |
NorthAmerica | |||
Revenue Recognition [Line Items] | |||
Revenue | 5,164,820 | 4,632,339 | 5,209,294 |
Europe | |||
Revenue Recognition [Line Items] | |||
Revenue | 6,061,948 | 5,492,184 | 5,838,124 |
Parts and Services | |||
Revenue Recognition [Line Items] | |||
Revenue | 12,140,516 | 10,963,713 | 11,877,846 |
Parts and Services | Specialty | |||
Revenue Recognition [Line Items] | |||
Revenue | 1,863,917 | 1,505,340 | 1,459,396 |
Parts and Services | NorthAmerica | |||
Revenue Recognition [Line Items] | |||
Revenue | 4,243,203 | 3,988,214 | 4,600,903 |
Parts and Services | Europe | |||
Revenue Recognition [Line Items] | |||
Revenue | 6,033,396 | 5,470,159 | 5,817,547 |
Other Revenue | |||
Revenue Recognition [Line Items] | |||
Revenue | $ 947,988 | $ 665,117 | $ 628,263 |
Revenue Recognition Movement in
Revenue Recognition Movement in Standard Product Warranty Accrual (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Product Warranty Liability [Line Items] | |||
Contract with Customer, Right to Recover Product | $ 58,000 | $ 57,000 | |
Contract with Customer, Refund Liability | 107,000 | 102,000 | |
Revenue, Variable Consideration Reserve | 144,000 | 127,000 | |
Deferred Service-Type Warranty Revenue | 31,657 | 25,622 | $ 27,067 |
Deferred Revenue, Additions | 70,561 | 43,214 | |
Deferred Revenue, Revenue Recognized | $ 64,526 | $ 44,659 | |
Minimum | |||
Product Warranty Liability [Line Items] | |||
Standard Product Warranty Period | 6 months | ||
Maximum [Member] | |||
Product Warranty Liability [Line Items] | |||
Standard Product Warranty Period | 36 months |
Restructuring and Acquisition_2
Restructuring and Acquisition Related Expenses - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restructuring Cost and Reserve | ||||
Restructuring Costs | $ 9 | $ 18 | ||
RSUs granted, shares | 208,603 | 230,360 | 270,388 | |
Business Combination, Acquisition Related Costs | $ 3 | $ 8 | $ 2 | |
RSUs | ||||
Restructuring Cost and Reserve | ||||
RSUs granted, shares | 738,014 | |||
Fair value of RSUs vested during the period | $ 37 | 27 | 22 | |
Andrew Page | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | 14 | |||
Maximum [Member] | RSUs | ||||
Restructuring Cost and Reserve | ||||
Vesting period | 5 years | |||
Maximum [Member] | Performance Shares [Member] | ||||
Restructuring Cost and Reserve | ||||
Reporting period of positive diluted earnings per share | 5 years | |||
Specialty | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost Remaining | $ (5) | |||
1 LKQ Europe Program [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | 6 | |||
1 LKQ Europe Program [Member] | Minimum [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost Remaining | (40) | |||
1 LKQ Europe Program [Member] | Maximum [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost Remaining | (50) | |||
2019 Global Restructuring Program [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | 2 | 7 | 37 | |
Restructuring and Related Cost, Expected Cost | 47 | |||
2019 Global Restructuring Program [Member] | Specialty | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | 1 | |||
Restructuring and Related Cost, Expected Cost | 1 | |||
2019 Global Restructuring Program [Member] | NorthAmerica | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | 3 | 11 | ||
Restructuring and Related Cost, Expected Cost | 14 | |||
2019 Global Restructuring Program [Member] | Europe | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | 4 | 25 | ||
Restructuring and Related Cost, Expected Cost | 31 | |||
2020 Global Restructuring Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | 9 | 50 | ||
Restructuring Reserve | 11 | 21 | ||
Gain (Loss) on Disposition of Property Plant Equipment | $ 3 | |||
2020 Global Restructuring Program | Employee-related liabilities, current | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve | 2 | 4 | ||
2020 Global Restructuring Program | Operating Lease, Liability | ||||
Restructuring Cost and Reserve | ||||
Restructuring Reserve | 9 | 17 | ||
2020 Global Restructuring Program | Minimum [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 60 | |||
2020 Global Restructuring Program | Maximum [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Expected Cost | 70 | |||
2020 Global Restructuring Program | Specialty | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Cost Incurred to Date | 1 | |||
Restructuring and Related Cost, Expected Cost | 1 | |||
2020 Global Restructuring Program | NorthAmerica | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Cost Incurred to Date | 30 | |||
Restructuring and Related Cost, Expected Cost | 32 | |||
2020 Global Restructuring Program | Europe | ||||
Restructuring Cost and Reserve | ||||
Restructuring and Related Cost, Cost Incurred to Date | 27 | |||
Restructuring and Related Cost, Expected Cost | $ 32 | |||
Restructuring Charges And Business Combination Acquisition Related Costs [Member] | 2019 Global Restructuring Program [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | 20 | |||
cost of goods and services sold | Andrew Page | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | 4 | |||
cost of goods and services sold | 2019 Global Restructuring Program [Member] | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | $ 17 | |||
cost of goods and services sold | 2020 Global Restructuring Program | ||||
Restructuring Cost and Reserve | ||||
Restructuring Costs | $ 7 |
Equity Incentive Plans - Additi
Equity Incentive Plans - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Authorized | 70,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Number of Shares Available for Grant | 9,000,000 | ||
Unrecognized Stock Based Compensation Expense Expected To Be Recognize In Year One | $ 21,325,000 | ||
Stock-based compensation expense | 33,736,000 | $ 29,078,000 | $ 27,695,000 |
Share-based Payment Arrangement, Expense, Tax Benefit | $ (7,479,000) | $ (6,614,000) | $ (6,227,000) |
RSUs [Abstract] | |||
RSUs granted, shares | 208,603 | 230,360 | 270,388 |
Stock Options [Abstract] | |||
Share-based Payment Arrangement, Expense, after Tax | $ 26,257,000 | $ 22,464,000 | $ 21,468,000 |
Unrecognized Stock Based Compensation Expense Expected To Be Recognize In Year Two | 13,169,000 | ||
Unrecognized Stock Based Compensation Expense Expected To Be Recognize In Year Three | 6,040,000 | ||
Unrecognized Stock Based Compensation Expense Expected To Be Recognize In Year Four | 3,039,000 | ||
Unrecognized Stock Based Compensation Expense Expected To Be Recognize In Year Five | 177,000 | ||
Unrecognized Stock Based Compensation Expense Expected To Be Recognized Total | 43,750,000 | ||
Summary of Expected to Vest RSUs [Line Items] | |||
share based compensation arrangement | $ 52,562 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 1,357,079 | 1,479,672 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 39.22 | $ 31.68 | $ 27.82 |
RSUs [Abstract] | |||
RSUs granted, shares | 738,014 | ||
Fair value of RSUs vested during the period | $ 37,000,000 | $ 27,000,000 | $ 22,000,000 |
Performance Based RSU [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 458,019 | 291,601 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 38.31 | $ 31.85 | $ 27.69 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Performance Period | 3 years | ||
RSUs [Abstract] | |||
RSUs granted, shares | 125,656 | ||
Performance Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation expense | $ 7,000,000 | $ 11,000,000 | $ 11,000,000 |
Minimum | Stock options | |||
Stock Options [Abstract] | |||
Stock options expiration period | 6 years | ||
Maximum [Member] | RSUs | |||
Stock Options [Abstract] | |||
Vesting period | 5 years | ||
Maximum [Member] | Performance Shares [Member] | |||
RSUs [Abstract] | |||
Reporting period of positive diluted earnings per share | 5 years | ||
Maximum [Member] | Stock options | |||
Stock Options [Abstract] | |||
Stock options expiration period | 10 years | ||
Vesting period | 5 years | ||
Selling, General and Administrative Expenses [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation expense | $ 33,087,000 | 28,572,000 | 27,218,000 |
Cost of Sales [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation expense | 649,000 | 506,000 | 477,000 |
Continuing Operations [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award | |||
Stock-based compensation expense | $ 33,736,000 | $ 29,078,000 | $ 27,695,000 |
Stock-Based Compensation Schedu
Stock-Based Compensation Schedule of Unvested Restricted Stock Units Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Weighted Average Fair Value [Abstract] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 208,603 | 230,360 | 270,388 |
Performance Based RSU [Member] | |||
Shares Outstanding [Abstract] | |||
Unvested RSUs, shares | 458,019 | 291,601 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 31.77 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 11,800 | ||
Weighted Average Fair Value [Abstract] | |||
Unvested RSUs, weighted average grant date fair value | $ 31.96 | $ 29.98 | |
RSUs expected to vest, weighted average remaining contractual term | 1 year | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 125,656 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 38.31 | $ 31.85 | $ 27.69 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Performance based adjustment,Nonvested, Weighted Average Grant Date Fair Value | $ 27.72 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Number | 447,595 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Weighted Average Grant Date Fair Value | $ 32.01 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Aggregate Intrinsic Value | $ 26,869 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Performance Period | 3 years | ||
RSUs | |||
Shares Outstanding [Abstract] | |||
Unvested RSUs, shares | 1,357,079 | 1,479,672 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeitures, Weighted Average Grant Date Fair Value | $ 34.39 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Weighted Average Grant Date Fair Value | $ 33.11 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 55,078 | ||
Weighted Average Fair Value [Abstract] | |||
Unvested RSUs, weighted average grant date fair value | $ 34.85 | $ 31.71 | |
RSUs expected to vest, weighted average remaining contractual term | 2 years 7 months 6 days | ||
RSUs expected to vest, aggregate intrinsic value | $ 70,877 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 738,014 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 39.22 | $ 31.68 | $ 27.82 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period | 805,529 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Number | 1,180,689 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Expected To Vest, Weighted Average Grant Date Fair Value | $ 34.84 |
Stock-Based Compensation Sche_2
Stock-Based Compensation Schedule of Stock Option Activity (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Stock options | Minimum | |
Aggregate Intrinsic Value [Abstract] | |
Stock options expiration period | 6 years |
Schedule of Stock-Based Compens
Schedule of Stock-Based Compensation Expense Expected to be Recognized (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award | |||
Unrecognized Stock Based Compensation Expense Expected To Be Recognize In Year One | $ 21,325 | ||
Unrecognized Stock Based Compensation Expense Expected To Be Recognized Total | 43,750 | ||
Stock-based compensation expense | 33,736 | $ 29,078 | $ 27,695 |
Unrecognized Stock Based Compensation Expense Expected To Be Recognize In Year Two | 13,169 | ||
Unrecognized Stock Based Compensation Expense Expected To Be Recognize In Year Three | 6,040 | ||
Unrecognized Stock Based Compensation Expense Expected To Be Recognize In Year Four | 3,039 | ||
Unrecognized Stock Based Compensation Expense Expected To Be Recognize In Year Five | $ 177 |
Earnings Per Share Earnings P_2
Earnings Per Share Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Earnings Per Share, Basic and Diluted [Line Items] | |||
Income from continuing operations | $ 1,091,476 | $ 640,509 | $ 543,415 |
Denominator for basic earnings per share—Weighted-average shares outstanding | 296,836 | 304,640 | 310,155 |
Effect of dilutive securities: | |||
Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding | 297,722 | 305,006 | 310,969 |
Basic earnings per share from continuing operations | $ 3.68 | $ 2.10 | $ 1.75 |
Diluted earnings per share from continuing operations (1) | $ 3.67 | $ 2.10 | $ 1.75 |
RSUs | |||
Effect of dilutive securities: | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 672 | 362 | 393 |
Performance Based RSU [Member] | |||
Effect of dilutive securities: | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 214 | 3 | 0 |
Stock options | |||
Effect of dilutive securities: | |||
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 0 | 1 | 421 |
Schedule of Antidilutive Securi
Schedule of Antidilutive Securities Excluded from Computation of Diluted Earnings Per Share (Details) - shares shares in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Restricted Stock Units (RSUs) [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities | 29 | 673 | 586 |
Share-based Payment Arrangement, Option [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share | |||
Antidilutive securities | 0 | 0 | 24 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21.00% | 21.00% | 21.00% | |
Accumulated other comprehensive loss | $ (153,130) | $ (99,009) | $ (200,885) | $ (174,950) |
Pretax income (loss) | (49,639) | 54,990 | (868) | |
Income tax effect | (3,965) | 14,617 | 3,000 | |
Reclassification of unrealized loss (gain) | (109) | 47,285 | (36,468) | |
Reclassification of deferred income taxes | 9 | (11,556) | 8,544 | |
Other comprehensive income from unconsolidated subsidiaries | (429) | (4,532) | 236 | |
Disposal of business, net | 12 | 1,072 | (379) | |
Accumulated Foreign Currency Adjustment Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (120,591) | (57,126) | (170,893) | (177,597) |
Pretax income (loss) | (63,477) | 112,695 | 7,083 | |
Income tax effect | 0 | 0 | 0 | |
Reclassification of unrealized loss (gain) | 0 | 0 | 0 | |
Reclassification of deferred income taxes | 0 | 0 | 0 | |
Other comprehensive income from unconsolidated subsidiaries | 0 | 0 | 0 | |
Disposal of business, net | 12 | 1,072 | (379) | |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (6) | (968) | 5,358 | 14,374 |
Pretax income (loss) | 2,937 | (48,540) | 23,850 | |
Income tax effect | (698) | 11,559 | (5,579) | |
Reclassification of unrealized loss (gain) | (1,758) | 40,359 | (35,686) | |
Reclassification of deferred income taxes | 481 | (9,704) | 8,399 | |
Other comprehensive income from unconsolidated subsidiaries | 0 | 0 | 0 | |
Disposal of business, net | 0 | 0 | 0 | |
Accumulated Defined Benefit Plans Adjustment, Net Gain (Loss) Attributable to Parent [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (24,156) | (32,967) | (31,934) | (8,075) |
Pretax income (loss) | 10,901 | (9,165) | (31,801) | |
Income tax effect | (3,267) | 3,058 | 8,579 | |
Reclassification of unrealized loss (gain) | 1,649 | 6,926 | (782) | |
Reclassification of deferred income taxes | (472) | (1,852) | 145 | |
Other comprehensive income from unconsolidated subsidiaries | 0 | 0 | 0 | |
Disposal of business, net | 0 | 0 | 0 | |
Accumulated Gain (Loss) from Unconsoldated Subsidiaries [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated other comprehensive loss | (8,377) | (7,948) | (3,416) | $ (3,652) |
Pretax income (loss) | 0 | 0 | 0 | |
Income tax effect | 0 | 0 | 0 | |
Reclassification of unrealized loss (gain) | 0 | 0 | 0 | |
Reclassification of deferred income taxes | 0 | 0 | 0 | |
Other comprehensive income from unconsolidated subsidiaries | (429) | (4,532) | 236 | |
Disposal of business, net | 0 | 0 | 0 | |
Other income, net | Currency Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification of unrealized loss (gain) | (1,973) | 38,198 | (14,020) | |
Other income, net | Forward Contracts | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification of unrealized loss (gain) | (434) | 9,189 | 0 | |
Interest Expense [Member] | Interest Rate Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification of unrealized loss (gain) | 1,188 | 3,160 | (5,872) | |
Interest Expense [Member] | Currency Swap [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Reclassification of unrealized loss (gain) | $ (539) | $ (10,188) | $ (15,794) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% |
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | $ 109 | $ (47,285) | $ 36,468 |
Interest Rate Swap | Interest Expense [Member] | |||
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | (1,188) | (3,160) | 5,872 |
Currency Swap [Member] | Other income, net | |||
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | 1,973 | (38,198) | 14,020 |
Currency Swap [Member] | Interest Expense [Member] | |||
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | 539 | 10,188 | 15,794 |
Forward Contracts | Other income, net | |||
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | 434 | (9,189) | 0 |
Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent [Member] | |||
Schedule of Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification From Aoci Current Period Net Of Tax Attributable To Parent Unrealized Loss Gains | $ 1,758 | $ (40,359) | $ 35,686 |
Long-Term Obligations - Additio
Long-Term Obligations - Additional Information (Details) $ in Thousands, € in Millions | Apr. 01, 2021USD ($) | Apr. 01, 2021EUR (€) | Jan. 10, 2020USD ($) | Dec. 31, 2021USD ($) | Mar. 31, 2021 | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Nov. 23, 2021 | Dec. 20, 2018USD ($) | Nov. 20, 2018USD ($) | Apr. 09, 2018 | Dec. 01, 2017 | Apr. 14, 2016 | May 09, 2013USD ($) |
Debt Instrument | |||||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 35,067 | $ 35,067 | |||||||||||||
Outstanding letters of credit | $ 71,000 | ||||||||||||||
RestrictivePaymentsUnderBorrowingAgreement | 2,850,000 | 2,850,000 | |||||||||||||
Loss (gain) on debt extinguishment | (23,564) | (12,751) | $ 128 | ||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 13,820 | 13,820 | |||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Three | 2,463,996 | 2,463,996 | |||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Four | 9,580 | 9,580 | |||||||||||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | 3,386 | 3,386 | |||||||||||||
Long-term Debt, Maturities, Repayments of Principal after Year Five | 297,982 | 297,982 | |||||||||||||
Debt and Lease Obligation | 2,823,831 | 2,823,831 | 2,896,676 | ||||||||||||
Early-redemption premium | (16,014) | (9,498) | 0 | ||||||||||||
Short Term Debt That May Be Extended Beyond The Current Due Date | 16,000 | 16,000 | |||||||||||||
Euro Notes 2026 | |||||||||||||||
Debt Instrument | |||||||||||||||
Long-term Debt | 916,000 | ||||||||||||||
Extinguishment of Debt, Amount | $ 915,000 | € 777 | |||||||||||||
Loss (gain) on debt extinguishment | 24,000 | ||||||||||||||
Interest expense | $ 16,000 | € 14 | |||||||||||||
Debt Instrument, Redemption Price, Percentage | 101.813% | 101.813% | |||||||||||||
Early-redemption premium | $ 16,000 | € 14 | |||||||||||||
Euro Notes 2028 | |||||||||||||||
Debt Instrument | |||||||||||||||
Long-term Debt | 284,000 | $ 284,000 | 305,000 | ||||||||||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||||||||||||
US Notes (2023) [Member] | |||||||||||||||
Debt Instrument | |||||||||||||||
Senior notes interest rate | 101.583% | 4.75% | |||||||||||||
Extinguishment of Debt, Amount | $ 614,000 | ||||||||||||||
Loss (gain) on debt extinguishment | 13,000 | ||||||||||||||
Interest expense | 4,000 | ||||||||||||||
Early-redemption premium | $ 9,000 | ||||||||||||||
Euro Notes (2024) | |||||||||||||||
Debt Instrument | |||||||||||||||
Long-term Debt | $ 568,500 | $ 568,500 | $ 610,800 | ||||||||||||
Senior notes interest rate | 3.875% | ||||||||||||||
Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument | |||||||||||||||
Weighted average interest rates | 1.10% | 1.10% | 1.70% | ||||||||||||
Outstanding letters of credit | $ 69,000 | $ 69,000 | |||||||||||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,194,000 | 1,194,000 | |||||||||||||
Amendment No. 3, Fourth Amended and Restate Credit Agreement [Member] | Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 3,150,000 | ||||||||||||||
Increment change in applicable margin | 0.25% | ||||||||||||||
Long-Term Line of Credit, Current | $ 18,000 | ||||||||||||||
Fourth Amended Credit Agreement | Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument | |||||||||||||||
Payments of Financing Costs | $ 4,000 | ||||||||||||||
Mitsubishi UFJ [Member] | Receivables securitization | |||||||||||||||
Debt Instrument | |||||||||||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 110,000 | ||||||||||||||
AmendmentNo.4FourthAmendedandRestateCreditAgreementMember | Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument | |||||||||||||||
Long-Term Line of Credit, Current | $ 18,000 | ||||||||||||||
Maximum Permitted Net Leverage Ratio | 400.00% | 500.00% | |||||||||||||
AmendmentNo.4FourthAmendedandRestateCreditAgreementMember | Letter of Credit [Member] | |||||||||||||||
Debt Instrument | |||||||||||||||
Line of Credit Facility, Commitment Fee Percentage | 0.125% | ||||||||||||||
AmendmentNo6.FourthAmendedandRestateCreditAgreement [Member] | Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument | |||||||||||||||
Increment change in applicable margin | 0.0326% | ||||||||||||||
Twenty Twenty Three [Domain] | US Notes (2023) [Member] | |||||||||||||||
Debt Instrument | |||||||||||||||
Long-term Debt | $ 600,000 | ||||||||||||||
TwentyTwentyEight [Member] | Euro Notes 2028 | |||||||||||||||
Debt Instrument | |||||||||||||||
Senior notes interest rate | 4.125% | ||||||||||||||
Net Receivables [Member] | Mitsubishi UFJ [Member] | Receivables securitization | |||||||||||||||
Debt Instrument | |||||||||||||||
Debt Instrument, Collateral Amount | $ 121,000 | $ 121,000 | |||||||||||||
Maximum [Member] | AmendmentNo.4FourthAmendedandRestateCreditAgreementMember | Revolving Credit Facility [Member] | |||||||||||||||
Debt Instrument | |||||||||||||||
Increment change in commitment fees | 0.05% | 0.05% |
Schedule of Long-Term Obligatio
Schedule of Long-Term Obligations (Details) $ in Thousands, € in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Apr. 09, 2018EUR (€) | Apr. 14, 2016EUR (€) | May 09, 2013USD ($) |
Debt Instrument | |||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 35,067 | ||||
Finance Lease, Liability | 51,556 | $ 57,336 | |||
Other Debt | 9,405 | 15,706 | |||
Long-term obligations, total | 2,823,831 | 2,896,676 | |||
Deferred Finance Costs, Noncurrent, Net | (11,604) | (25,225) | |||
Deferred Finance Costs, Current, Net | (315) | (313) | |||
Long-term obligations, total, net | 2,811,912 | 2,871,138 | |||
Current portion of long-term obligations | (34,752) | (58,497) | |||
Long-term obligations, excluding current portion | 2,777,160 | 2,812,641 | |||
Loans Payable [Member] | |||||
Debt Instrument | |||||
Term loan | 0 | 323,750 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument | |||||
Long-term Line of Credit | 1,886,802 | 642,958 | |||
Euro Notes (2024) | |||||
Debt Instrument | |||||
Long-term Debt | 568,500 | 610,800 | |||
Euro Notes 2026/28 [Member] | |||||
Debt Instrument | |||||
Long-term Debt | 284,250 | 1,221,600 | € 1,000 | ||
Notes payable | |||||
Debt Instrument | |||||
Notes Payable | 23,318 | $ 24,526 | |||
Revolving Credit Facility [Member] | |||||
Debt Instrument | |||||
Line of Credit Facility, Remaining Borrowing Capacity | $ 1,194,000 | ||||
Twenty Twenty Three [Domain] | US Notes (2023) [Member] | |||||
Debt Instrument | |||||
Long-term Debt | $ 600,000 | ||||
Twenty Twenty Four [Domain] | Euro Notes (2024) | |||||
Debt Instrument | |||||
Long-term Debt | € | € 500 | ||||
TwentyTwentySix [Member] | Euro Notes 2026/28 [Member] | |||||
Debt Instrument | |||||
Long-term Debt | € | 750 | ||||
TwentyTwentyEight [Member] | Euro Notes 2026/28 [Member] | |||||
Debt Instrument | |||||
Long-term Debt | € | € 250 |
Schedule of Long-Term Obligat_2
Schedule of Long-Term Obligations (Parenthetical) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2021 | Dec. 31, 2020 | Jan. 10, 2020 | Apr. 09, 2018 | May 09, 2013 | |
Debt Instrument | |||||
Long-term Debt, Maturities, Repayments of Principal in Next Twelve Months | $ 35,067 | ||||
Finance Lease, Weighted Average Discount Rate, Percent | 3.50% | 3.50% | |||
Debt Issuance Costs, Gross | $ 12,000 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Two | 13,820 | ||||
Long-term Debt, Maturities, Repayments of Principal in Year Five | $ 3,386 | ||||
Revolving Credit Facility [Member] | |||||
Debt Instrument | |||||
Debt, Weighted Average Interest Rate | 1.10% | 1.70% | |||
US Notes (2023) [Member] | |||||
Debt Instrument | |||||
Senior notes interest rate | 101.583% | 4.75% | |||
Senior Notes 2024 [Member] | |||||
Debt Instrument | |||||
Debt Instrument, Redemption Price, Percentage | 100.00% | ||||
Notes Payable | |||||
Debt Instrument | |||||
Debt, Weighted Average Interest Rate | 3.30% | 3.20% | |||
Other Debt [Member] | |||||
Debt Instrument | |||||
Debt, Weighted Average Interest Rate | 1.20% | 1.80% | |||
Euro Notes 2026/28 [Member] | TwentyTwentyEight [Member] | |||||
Debt Instrument | |||||
Senior notes interest rate | 3.625% |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) € in Thousands, kr in Thousands, $ in Thousands, £ in Millions | Dec. 31, 2021USD ($) | Dec. 31, 2021EUR (€) | Dec. 31, 2021GBP (£) | Dec. 31, 2020USD ($) | Dec. 31, 2020EUR (€) | Dec. 31, 2020SEK (kr) |
Derivative Liability, Current | $ 58,577 | |||||
Interest Rate Swap [Member] | ||||||
Derivative, Notional Amount | 480,000 | |||||
Derivative Liability, Current | 899 | |||||
Cross Currency Interest Rate Contract [Member] | ||||||
Derivative, Notional Amount | € | € 340,000 | |||||
Derivative Liability, Current | 1,350 | |||||
Forward Contracts | ||||||
Derivative, Notional Amount | € 142,000 | £ 75 | kr 227,000 | |||
Cross Currency Fx Forward Contract [Member] | ||||||
Derivative Liability, Current | 56,328 | |||||
Fair Value, Recurring [Member] | ||||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 106,655 | 151,920 | ||||
Fair Value, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | ||||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 56,328 | |||||
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | ||||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 899 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) $ in Thousands, € in Billions | 12 Months Ended | 96 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2025 | Dec. 31, 2020USD ($) | Apr. 09, 2018EUR (€) | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Borrowings Under Credit Facility | $ 1,887,000 | $ 967,000 | ||
Cash Surrender Value of Life Insurance | 90,000 | 72,000 | ||
Cash Surrender Value of Life Insurance | $ 90,000 | 72,000 | ||
Fair Value Disclosures [Text Block] | Fair Value Measurements Financial Assets and Liabilities Measured at Fair Value We use the market and income approaches to estimate the fair value of our financial assets and liabilities, and during the year ended December 31, 2021, there were no significant changes in valuation techniques or inputs related to the financial assets or liabilities that we have historically recorded at fair value. The tiers in the fair value hierarchy include: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as significant unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions. The following tables present information about our financial 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 December 31, 2021 and December 31, 2020 (in thousands): Balance as of December 31, 2021 Fair Value Measurements as of December 31, 2021 Level 1 Level 2 Level 3 Liabilities: Contingent consideration liabilities $ 17,694 $ — $ — $ 17,694 Deferred compensation liabilities 88,961 — 88,961 — Total Liabilities $ 106,655 $ — $ 88,961 $ 17,694 Balance as of December 31, 2020 Fair Value Measurements as of December 31, 2020 Level 1 Level 2 Level 3 Liabilities: Contingent consideration liabilities $ 13,263 $ — $ — $ 13,263 Interest rate swaps 899 — 899 — Deferred compensation liabilities 76,240 — 76,240 — Cross currency swap agreements 56,328 — 56,328 — Foreign currency forward contracts 5,190 — 5,190 — Total Liabilities $ 151,920 $ — $ 138,657 $ 13,263 Plan investments in corporate-owned life insurance, which are intended to fund the deferred compensation liabilities, are recorded at their cash surrender value, not fair value, and therefore are not included above. The cash surrender value of life insurance assets was $90 million and $72 million as of December 31, 2021 and 2020, respectively. The current portion of contingent consideration liabilities is included in Other current liabilities on the Consolidated Balance Sheets; the noncurrent portion of deferred compensation liabilities and contingent consideration liabilities is included in Other noncurrent liabilities on the Consolidated Balance Sheets based on the expected timing of the related payments. The balance sheet classification of the interest rate swaps, cross currency swap agreements, and foreign currency forward contracts is presented in Note 10, "Derivative Instruments and Hedging Activities." Our Level 2 liabilities are valued using inputs from third parties and market observable data. We obtain valuation data for the deferred compensation liabilities from third party sources, which use quoted market prices, investment allocations and reportable trades. We value other derivative instruments using a third party valuation model that performs a discounted cash flow analysis based on the terms of the contracts and market observable inputs such as current and forward interest rates and current and forward foreign exchange rates. Our contingent consideration liabilities are related to our business acquisitions. Under the terms of the contingent consideration agreements, payments may be made at specified future dates depending on the performance of the acquired business subsequent to the acquisition. The liabilities for these payments are classified as Level 3 liabilities because the related fair value measurement, which is determined using an income approach, includes significant inputs not observable in the market. We also have equity investments recorded in Other noncurrent assets that are reported at fair value. We have used net asset value as a practical expedient to value these equity investments and thus they are excluded from the fair value hierarchy disclosure. Financial Assets and Liabilities Not Measured at Fair Value Our debt is reflected on the Consolidated Balance Sheets at cost. Based on market conditions as of both December 31, 2021 and 2020, the fair value of the credit agreement borrowings reasonably approximated the carrying values of $1,887 million and $967 million, respectively. As of December 31, 2021 and 2020, the fair values of the Euro Notes (2024) were approximately $605 million and $662 million, respectively, compared to carrying values of $569 million and $611 million, respectively. As of December 31, 2020, the fair value of the Euro Notes (2026) was $939 million compared to a carrying value of $916 million. The Euro Notes (2026) were paid off in 2021 and therefore were no longer outstanding as of December 31, 2021. As of | |||
Tax Cuts and Jobs Acts of 2017 Transition Tax For Accumulated Foreign Earnings Provisional Amount Payment Period | 8 years | |||
Euro Notes (2024) | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Long-term Debt, Fair Value | $ 605,000 | 662,000 | ||
Long-term Debt | 568,500 | 610,800 | ||
Long-term Debt | 568,500 | 610,800 | ||
Euro Notes 2026/28 [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Long-term Debt | 284,250 | 1,221,600 | € 1 | |
Long-term Debt | 284,250 | 1,221,600 | € 1 | |
Euro Notes 2026 | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Long-term Debt, Fair Value | 939,000 | |||
Long-term Debt | 916,000 | |||
Long-term Debt | 916,000 | |||
Euro Notes 2028 | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Long-term Debt, Fair Value | 301,000 | 332,000 | ||
Long-term Debt | 284,000 | 305,000 | ||
Long-term Debt | 284,000 | 305,000 | ||
Fair Value, Recurring [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 106,655 | 151,920 | ||
Fair Value, Recurring [Member] | Interest Rate Swap [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 899 | |||
Fair Value, Recurring [Member] | Contingent Consideration Liabilities [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 17,694 | 13,263 | ||
Fair Value, Recurring [Member] | Deferred Compensation Liabilities [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 88,961 | 76,240 | ||
Fair Value, Recurring [Member] | Cross Currency Interest Rate Contract [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 56,328 | |||
Fair Value, Recurring [Member] | Forward Contracts | hedge | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 5,190 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Interest Rate Swap [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Contingent Consideration Liabilities [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Deferred Compensation Liabilities [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Cross Currency Interest Rate Contract [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Forward Contracts | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 88,961 | 138,657 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 899 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Contingent Consideration Liabilities [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Deferred Compensation Liabilities [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 88,961 | 76,240 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Cross Currency Interest Rate Contract [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 56,328 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Forward Contracts | hedge | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 5,190 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 17,694 | 13,263 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Interest Rate Swap [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Contingent Consideration Liabilities [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 17,694 | 13,263 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Deferred Compensation Liabilities [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | 0 | ||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Cross Currency Interest Rate Contract [Member] | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | 0 | |||
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Forward Contracts | ||||
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 | |
Classification [Line Items] | ||||
Operating Lease, Payments | $ 286,030 | $ 299,260 | $ 297,712 | |
Operating Lease, Weighted Average Remaining Lease Term | 9 years 4 months 24 days | 9 years 8 months 12 days | ||
Operating Lease, Not Yet Commenced, Expense | $ 79,000 | |||
Lease, Liability, Payments, Due Year Two | 268,516 | |||
Lease, Liability, Payments, Due Year Three | 226,975 | |||
Lease, Liability, Payments, Due Year Four | 193,348 | |||
Lease, Liability, Payments, Due Year Five | 158,113 | |||
Operating lease assets, net | 1,361,324 | $ 1,353,124 | 1,308,511 | $ 1,300,000 |
Finance Lease, Right-of-Use Asset | 52,944 | 55,423 | ||
Lease Right-of-Use-Asset | 1,414,268 | 1,408,547 | ||
Current portion of operating lease liabilities | 203,108 | 221,811 | ||
Finance Lease, Liability, Current | 14,746 | 12,239 | ||
Long-term operating lease liabilities, excluding current portion | 1,209,218 | 1,197,963 | ||
Finance Lease, Liability, Noncurrent | 36,810 | 45,097 | ||
Lease Liability | 1,463,882 | 1,477,110 | ||
Lease, Liability, Payments, Due After Year Six | 769,539 | |||
Lessee, Operating Lease, Liability, Payments, Due | 1,860,762 | |||
Finance Lease, Liability, Payment, Due | 64,920 | |||
Lease, Liability, Payments Due | 1,925,682 | |||
Lessee, Operating Lease, Liability, Undiscounted Excess Amount | 448,436 | |||
Finance Lease, Liability, Undiscounted Excess Amount | 13,364 | |||
Lease, Liability, Undiscounted Excess Amount | 461,800 | |||
Operating Lease, Liability | 1,412,326 | |||
Finance Lease, Liability | $ 51,556 | $ 57,336 | ||
Finance Lease, Weighted Average Remaining Lease Term | 8 years 10 months 24 days | 9 years | ||
Operating Lease, Weighted Average Discount Rate, Percent | 5.20% | 5.30% | ||
Finance Lease, Weighted Average Discount Rate, Percent | 3.50% | 3.50% | ||
Finance Lease, Principal Payments | $ 13,361 | $ 11,772 | 11,744 | |
Right-of-Use Asset Obtained in Exchange for Finance Lease Liability | 9,860 | 25,049 | 13,326 | |
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 248,480 | 244,073 | 231,454 | |
Lease, Cost | 428,604 | 423,253 | 432,509 | |
Lessee, Operating Lease, Liability, Payments, Due Next Rolling Twelve Months | 292,617 | |||
Finance Lease, Liability, Payments, Due in Next Rolling Twelve Months | 16,574 | |||
Finance Lease, Liability, Payments, Due in Rolling Year Two | 10,067 | |||
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Two | 258,449 | |||
Finance Lease, Liability, Payments, Due in Rolling Year Three | 8,413 | |||
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Three | 218,562 | |||
Finance Lease, Liability, Payments, Due in Rolling Year Four | 6,084 | |||
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Four | 187,264 | |||
Finance Lease, Liability, Payments, Due in Rolling Year Five | 2,972 | |||
Lessee, Operating Lease, Liability, Payments, Due in Rolling Year Five | 155,141 | |||
Finance Lease, Liability, Payments, Due in Rolling after Year Five | 20,810 | |||
Lessee, Operating Lease, Liability, Payments, Due after Rolling Year Five | 748,729 | |||
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||||
us-gaap_FinanceLeaseLiabilityPaymentsDueInNextRollingTwelveMonths | 309,191 | |||
Tax Cuts and Jobs Act of 2017 Transition Tax for Accumulated Foreign Earnings | 42,000 | |||
Cash Surrender Value of Life Insurance | 90,000 | 72,000 | ||
Borrowings Under Credit Facility | 1,887,000 | 967,000 | ||
Prior Year Disclosure Adjustment | ||||
Classification [Line Items] | ||||
Right-of-Use Asset Obtained in Exchange for Operating Lease Liability | 116,000 | 87,000 | ||
Cost of Sales [Member] | ||||
Classification [Line Items] | ||||
Operating Lease, Cost | 313,378 | 309,797 | 317,035 | |
Selling, General and Administrative Expenses [Member] | ||||
Classification [Line Items] | ||||
Short-term Lease, Cost | 9,037 | 6,568 | 9,392 | |
Variable Lease, Cost | 96,931 | 97,599 | 95,899 | |
Sublease Income | (2,883) | (2,372) | (1,640) | |
Depreciation and Amortization [Member] | ||||
Classification [Line Items] | ||||
Finance Lease, Right-of-Use Asset, Amortization | 9,780 | 9,876 | 10,277 | |
Interest Expense [Member] | ||||
Classification [Line Items] | ||||
Finance Lease, Interest Expense | $ 2,361 | $ 1,785 | $ 1,546 | |
Minimum [Member] | ||||
Classification [Line Items] | ||||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 1 year | |||
Maximum [Member] | ||||
Classification [Line Items] | ||||
Lessee, Operating Lease, Lease Not yet Commenced, Term of Contract | 15 years |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Service Cost Rate | 0.40% | 0.70% | 1.30% |
Defined Benefit Plan, Plan with Benefit Obligation in Excess of Plan Assets, Benefit Obligation (Deprecated 2018-01-31) | $ 194,283 | $ 211,539 | |
Defined Benefit Plan, Service Cost | $ 4,645 | $ 3,565 | $ 3,592 |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Discount Rate | 1.00% | 0.70% | |
Defined Benefit Plan, Plan Assets, Contributions by Employer Including Benefits Paid to Participants | $ 5,000 | ||
Defined Benefit Plan, Accumulated Other Comprehensive (Income) Loss, before Tax | 33,000 | ||
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Actual Return (Loss) | 2,103 | $ 3,663 | |
Defined Benefit Plan, Plan Assets, Contributions by Employer | 5,017 | 14,028 | |
Defined Benefit Plan, Benefit Obligation | 194,283 | 211,539 | $ 225,388 |
Defined Benefit Plan, Benefit Obligation, Business Combination | 643 | (506) | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Accumulated Benefit Obligation | 191,422 | 208,712 | |
Defined Benefit Plan, Pension Plan with Projected Benefit Obligation in Excess of Plan Assets, Plan Assets | $ 62,975 | $ 58,962 | |
Defined Benefit Plan, Assumptions Used Calculating Benefit Obligation, Rate of Compensation Increase | 1.70% | 1.80% | |
Defined Benefit Plan Assumptions Used Calculating Net Periodic Benefit Cost Interest Cost Rate Cost | 0.80% | 1.80% | 2.50% |
Defined Benefit Plan, Plan Assets, Amount | $ 62,975 | $ 58,962 | $ 83,305 |
Defined Benefit Plan, Plan Assets, Contributions by Plan Participant | 447 | 438 | |
Defined Benefit Plan, Plan Assets, Benefits Paid | (4,666) | (6,798) | |
Defined Benefit Plan, Plan Assets, Payment for Settlement | (1,815) | (40,565) | |
Defined Benefit Plan, Plan Assets, Foreign Currency Translation Gain (Loss) | (3,524) | 4,891 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Actual Return (Loss) on Plan Assets Still Held | 1,449 | 1,394 | |
Defined Benefit Plan, Plan Assets Level 3 Reconciliation, Increase (Decrease) for Purchase, Sale, and Settlement | (1,170) | (992) | |
Defined Benefit Plans, Plan Assets Level 3 Reconciliation, Currency Translation | (3,110) | 3,675 | |
Defined Benefit Plan, Expected Future Benefit Payment, Next Twelve Months | 4,879 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Five | 6,166 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Four | 5,583 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Three | 5,399 | ||
Defined Benefit Plan, Expected Future Benefit Payment, Year Two | 5,248 | ||
Liability, Defined Benefit Plan, Noncurrent | (126,492) | (148,974) | |
Defined Benefit Plan, Interest Cost | 1,354 | 2,740 | 4,077 |
Defined Benefit Plan, Expected Return (Loss) on Plan Assets | (1,667) | (2,129) | (2,337) |
Defined Benefit Plan, Benefit Obligation, Contributions by Plan Participant | 447 | 438 | |
Defined Benefit Plan, Benefit Obligation, Actuarial Gain (Loss) | (11,251) | 10,662 | |
Defined Benefit Plan, Benefit Obligation, Benefits Paid | (4,815) | (6,841) | |
Defined Benefit Plan, Benefit Obligation, Payment for Settlement | (1,815) | (40,565) | |
Defined Benefit Plan, Projected Benefit Obligation, Increase (Decrease) for Assets Transferred to (from) Plan | 6,300 | 0 | |
Defined Benefit Plan, Plan Assets, Increase (Decrease) for Assets Transferred to (from) Plan | 6,451 | 0 | |
Defined Benefit Plan, Amortization of Gain (Loss) | 1,703 | 1,272 | (404) |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit), Gain (Loss) Due to Settlement | (54) | $ 5,654 | $ (378) |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Defined Benefit Plan, Expected Future Benefit Payment, Five Fiscal Years Thereafter | $ 34,526 | ||
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Rate of Compensation Increase | 2.00% | 2.10% | 1.80% |
Defined Benefit Plan, Assumptions Used Calculating Net Periodic Benefit Cost, Expected Long-term Rate of Return on Plan Assets | 3.20% | 2.90% | 3.10% |
Liability, Defined Benefit Plan, Current | $ (4,816) | $ (3,603) | |
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (131,308) | (152,577) | |
Defined Benefit Plan, Benefit Obligation, Foreign Currency Translation Gain (Loss) | (12,764) | 16,658 | |
Defined Benefit Plan, Accumulated Benefit Obligation | 191,422 | 208,712 | |
Defined Benefit Plan, Expected Amortization of Gain (Loss), Next Fiscal Year | 1,000 | ||
Defined Benefit Plan, Amounts for Asset (Liability) Recognized in Statement of Financial Position | (131,308) | (152,577) | |
Defined Benefit Plan, Plan with Accumulated Benefit Obligation in Excess of Plan Assets, Plan Assets | 62,975 | 58,962 | |
Defined Benefit Plan, Net Periodic Benefit Cost (Credit) | 5,981 | 11,102 | $ 4,550 |
Other Comprehensive Income (Loss), Defined Benefit Plan, Gain (Loss), Reclassification Adjustment from AOCI, Tax | 6,000 | ||
Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 41,922 | 44,753 | $ 40,676 |
Fair Value Measured at Net Asset Value Per Share [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 21,053 | 14,209 | |
Mutual Fund [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 21,053 | 14,209 | |
Mutual Fund [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Mutual Fund [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Mutual Fund [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Mutual Fund [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 21,053 | 14,209 | |
Insurance Contracts, at Fair Value [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 41,922 | 44,753 | |
Insurance Contracts, at Fair Value [Member] | Fair Value, Inputs, Level 1 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Insurance Contracts, at Fair Value [Member] | Fair Value, Inputs, Level 2 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 0 | 0 | |
Insurance Contracts, at Fair Value [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | 41,922 | 44,753 | |
Insurance Contracts, at Fair Value [Member] | Fair Value Measured at Net Asset Value Per Share [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Defined Benefit Plan, Plan Assets, Amount | $ 0 | $ 0 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | 96 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2025 | Dec. 31, 2018 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 4,000 | $ 2,000 | $ 2,000 | ||
Unrecognized Tax Benefits that Would Impact Deferred Taxes | 1,000 | 1,000 | |||
Current Federal Tax Expense (Benefit) | 194,803 | 155,887 | 101,839 | ||
Current State and Local Tax Expense (Benefit) | 47,229 | 37,981 | 24,925 | ||
Current Foreign Tax Expense (Benefit) | 115,656 | 89,123 | 81,081 | ||
Current Income Tax Expense (Benefit) | 357,688 | 282,991 | 207,845 | ||
Deferred Federal Income Tax Expense (Benefit) | (2,603) | (6,805) | 22,173 | ||
Deferred State and Local Income Tax Expense (Benefit) | 433 | (6,521) | 6,376 | ||
Deferred Foreign Income Tax Expense (Benefit) | (24,927) | (20,167) | (21,064) | ||
Deferred income taxes | (27,079) | (33,827) | 7,109 | ||
Provision for income taxes | 330,591 | 249,498 | 215,330 | ||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | 978,226 | 713,087 | 616,842 | ||
Income (Loss) from Continuing Operations before Income Taxes, Foreign | 420,904 | 171,908 | 174,180 | ||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 1,399,130 | $ 884,995 | $ 791,022 | ||
U.S. federal statutory rate | 21.00% | 21.00% | 21.00% | ||
Effective Income Tax Rate Reconciliation, State and Local Income Taxes, Percent | 2.70% | 3.20% | 3.20% | ||
Effective Income Tax Rate Reconciliation, Foreign Income Tax Rate Differential, Percent | 1.20% | 1.90% | 1.40% | ||
Effective Income Tax Rate Reconciliation, Excess Tax Benefit on Stock Based Payments, Percent | (0.10%) | 0.00% | (0.30%) | ||
Effective Income Tax Rate Reconciliation, Excess Tax Benefit on Stock Based Payments, Percent | 0.40% | 0.80% | 0.90% | ||
Effective Income Tax Rate Reconciliation, Other Adjustments, Percent | (0.80%) | (0.40%) | 0.00% | ||
Effective Income Tax Rate Reconciliation, Percent | 23.60% | 28.20% | 27.20% | ||
Deferred Tax Assets, Tax Deferred Expense, Reserves and Accruals, Accrued Liabilities | $ 76,183 | $ 59,241 | |||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Postretirement Benefits | 30,567 | 34,143 | |||
Deferred Tax Assets, Inventory | 10,810 | 15,591 | |||
Deferred Tax Assets Tax Deferred Accounts Receivable | 18,205 | 15,449 | |||
Interest Expense Deduction Carry Forward | 31,677 | 34,485 | |||
Deferred Tax Assets, Tax Deferred Expense, Compensation and Benefits, Share-based Compensation Cost | 7,011 | 5,362 | |||
Deferred Tax Assets, Operating Lease Liabilities | 338,359 | 331,327 | |||
Deferred Tax Assets, Operating Loss Carryforwards | 24,690 | 27,538 | |||
Deferred Tax Assets, Other | 25,220 | 24,961 | |||
Deferred Tax Assets, Gross | 562,722 | 548,097 | |||
Deferred Tax Assets, Valuation Allowance | (45,420) | (60,275) | |||
Deferred Tax Assets, Net of Valuation Allowance | 517,302 | 487,822 | |||
Deferred Tax Liabilities Goodwill and Intangible Assets Excluding Trade Name Intangible | 238,325 | 229,330 | |||
Deferred Tax Liabilities Goodwill and Intangible Assets Excluding Trade Name Intangible | 93,499 | 95,007 | |||
Deferred Tax Liabilities Trade Name Intangible | 90,968 | 108,883 | |||
Deferred Tax Liabilities, Operating Lease Assets, net | 322,779 | 317,694 | |||
Deferred Tax Liabilities, Other | 19,086 | 11,364 | |||
Deferred Tax Liabilities, Gross | 764,657 | 762,278 | |||
Deferred Tax Liabilities, Net | (247,355) | (274,456) | |||
Unrecognized Tax Benefits | 4,522 | 2,308 | $ 2,317 | $ 1,237 | |
Unrecognized Tax Benefits, Increase Resulting from Acquisition | 0 | 0 | 1,376 | ||
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 5 | 1,147 | 5 | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 4,364 | 0 | 45 | ||
Unrecognized Tax Benefits, Decrease Resulting from Prior Period Tax Positions | (1,601) | 0 | 0 | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | (332) | (297) | (297) | ||
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 0 | (958) | 0 | ||
Unrecognized Tax Benefits, Decrease Resulting from Foreign Currency Translation | (99) | (49) | |||
Unrecognized Tax Benefits, Increase Resulting from Foreign Currency Translation | (222) | ||||
Deferred Tax Assets, Tax Credit Carryforwards | 1,000 | 1,000 | |||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | 15,000 | ||||
Valuation Allowance, due to interest expense deductions | 12,000 | ||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 1,000 | $ 1,000 | $ 1,000 | ||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 1,000 | ||||
Undistributed Earnings of Foreign Subsidiaries | 1,151,000 | ||||
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Current | 3,000 | ||||
Tax Cuts and Jobs Act, Transition Tax for Accumulated Foreign Earnings, Liability, Noncurrent | $ 25,000 | ||||
Effective Income Tax Rate Reconciliation, Change in Deferred Tax Assets Valuation Allowance, Percent | (0.80%) | 1.70% | 1.00% | ||
Tax Cuts and Jobs Acts of 2017 Transition Tax For Accumulated Foreign Earnings Provisional Amount Payment Period | 8 years | ||||
Tax Cuts and Jobs Act of 2017 Transition Tax for Accumulated Foreign Earnings | $ 42,000 | ||||
Tax Cuts and Jobs Acts of 2017 Transition Tax For Accumulated Foreign Earnings Provisional Amount Payment Period | 8 years | ||||
Income Tax Examination, Penalties and Interest Expense | 1,000 | ||||
Other Noncurrent Liabilities | |||||
Deferred Tax Liabilities, Net | (279,296) | $ (291,421) | |||
Deferred Tax Assets, Net | 31,941 | 16,965 | |||
PGW | |||||
Deferred Tax Assets, Capital Loss Carryforwards | 4,000 | 5,000 | |||
Continuing Operations [Member] | |||||
Deferred income taxes | $ (27,097) | $ (33,493) | $ 7,485 |
Segment and Geographic Inform_3
Segment and Geographic Information - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
Segment Reporting Information | |||
Revenue | $ 13,088,504 | $ 11,628,830 | $ 12,506,109 |
Segment EBITDA | 1,785,439 | 1,368,759 | 1,328,361 |
Depreciation and amortization | $ 284,003 | 299,497 | 314,406 |
Number of operating segments | 4 | ||
Number of reportable segments | 3 | ||
Intersegment [Member] | |||
Segment Reporting Information | |||
Revenue | $ 0 | 0 | 0 |
Third Party [Member] | |||
Segment Reporting Information | |||
Revenue | 13,088,504 | 11,628,830 | 12,506,109 |
Specialty | |||
Segment Reporting Information | |||
Revenue | 1,867,297 | 1,508,995 | 1,464,042 |
Segment EBITDA | 223,149 | 162,673 | 161,184 |
Depreciation and amortization | 29,683 | 29,180 | 29,464 |
Specialty | Intersegment [Member] | |||
Segment Reporting Information | |||
Revenue | 3,380 | 3,655 | 4,646 |
Specialty | Third Party [Member] | |||
Segment Reporting Information | |||
Revenue | 1,863,917 | 1,505,340 | 1,459,396 |
NorthAmerica | |||
Segment Reporting Information | |||
Revenue | 5,164,820 | 4,632,339 | 5,209,294 |
Segment EBITDA | 944,465 | 778,504 | 712,957 |
Depreciation and amortization | $ 96,914 | 97,390 | 93,747 |
Number of reportable segments | 1 | ||
NorthAmerica | Intersegment [Member] | |||
Segment Reporting Information | |||
Revenue | $ 2,181 | 1,033 | 705 |
NorthAmerica | Third Party [Member] | |||
Segment Reporting Information | |||
Revenue | $ 5,162,639 | $ 4,631,306 | $ 5,208,589 |
Schedule of Financial Performan
Schedule of Financial Performance by Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information | |||
Revenue | $ 13,088,504 | $ 11,628,830 | $ 12,506,109 |
Segment EBITDA | 1,785,439 | 1,368,759 | 1,328,361 |
Depreciation and amortization | 284,003 | 299,497 | 314,406 |
Specialty | |||
Segment Reporting Information | |||
Revenue | 1,867,297 | 1,508,995 | 1,464,042 |
Segment EBITDA | 223,149 | 162,673 | 161,184 |
Depreciation and amortization | 29,683 | 29,180 | 29,464 |
NorthAmerica | |||
Segment Reporting Information | |||
Revenue | 5,164,820 | 4,632,339 | 5,209,294 |
Segment EBITDA | 944,465 | 778,504 | 712,957 |
Depreciation and amortization | 96,914 | 97,390 | 93,747 |
Europe | |||
Segment Reporting Information | |||
Revenue | 6,061,948 | 5,492,184 | 5,838,124 |
Segment EBITDA | 617,825 | 427,582 | 454,220 |
Depreciation and amortization | 157,406 | 172,927 | 191,195 |
us-gaap_IntersegmentEliminationMember | |||
Segment Reporting Information | |||
Revenue | (5,561) | (4,688) | (5,351) |
Segment EBITDA | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 |
Third Party [Member] | |||
Segment Reporting Information | |||
Revenue | 13,088,504 | 11,628,830 | 12,506,109 |
Third Party [Member] | Specialty | |||
Segment Reporting Information | |||
Revenue | 1,863,917 | 1,505,340 | 1,459,396 |
Third Party [Member] | NorthAmerica | |||
Segment Reporting Information | |||
Revenue | 5,162,639 | 4,631,306 | 5,208,589 |
Third Party [Member] | Europe | |||
Segment Reporting Information | |||
Revenue | 6,061,948 | 5,492,184 | 5,838,124 |
Third Party [Member] | us-gaap_IntersegmentEliminationMember | |||
Segment Reporting Information | |||
Revenue | 0 | 0 | 0 |
Intersegment [Member] | |||
Segment Reporting Information | |||
Revenue | 0 | 0 | 0 |
Intersegment [Member] | Specialty | |||
Segment Reporting Information | |||
Revenue | 3,380 | 3,655 | 4,646 |
Intersegment [Member] | NorthAmerica | |||
Segment Reporting Information | |||
Revenue | 2,181 | 1,033 | 705 |
Intersegment [Member] | Europe | |||
Segment Reporting Information | |||
Revenue | 0 | 0 | 0 |
Intersegment [Member] | us-gaap_IntersegmentEliminationMember | |||
Segment Reporting Information | |||
Revenue | $ (5,561) | $ (4,688) | $ (5,351) |
Reconciliation Of Segment EBITD
Reconciliation Of Segment EBITDA To Net Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Reconciliation of Segment Earnings Before Interest Taxes Depreciation And Amortization to Net Income Table [Line Items] | |||
Revenue | $ 13,088,504 | $ 11,628,830 | $ 12,506,109 |
Unrealized Gain (Loss) on Marketable Securities, Cost Method Investments, and Other Investments | 10,841 | 0 | 0 |
Loss on disposal of businesses and impairment of net assets held for sale | 28 | 3,174 | 47,102 |
Net income | 1,092,124 | 640,414 | 545,034 |
Less: net income attributable to continuing noncontrolling interest | 1,251 | 1,888 | 2,800 |
Less: net income attributable to discontinued noncontrolling interest | 0 | (103) | (974) |
Net income attributable to LKQ stockholders | 1,090,873 | 638,423 | 541,260 |
Net income (loss) from discontinued operations | 648 | (95) | 1,619 |
Income (Loss) from Continuing Operations, Net of Tax, Attributable to Parent | 1,090,225 | 638,621 | 540,615 |
Depreciation and amortization | 259,992 | 272,292 | 290,770 |
Cost, Depreciation and Amortization | 23,099 | 21,672 | 21,312 |
Depreciation and Amortization - Restructuring Expenses | 912 | 5,533 | 2,324 |
Interest Income (Expense), Nonoperating, Net | 70,292 | 101,874 | 136,274 |
Loss (gain) on debt extinguishment | 23,564 | 12,751 | (128) |
Provision for income taxes | 330,591 | 249,498 | 215,330 |
EBITDA | 1,798,675 | 1,302,241 | 1,206,497 |
Equity in (losses) earnings of unconsolidated subsidiaries | (22,937) | (5,012) | 32,277 |
Other Nonrecurring Gain | 0 | 0 | (12,063) |
Bargain Purchase On Business Combination And Gain Loss On Previously Held Equity Interests And Investments | 0 | 0 | 1,157 |
Restructuring Charges And Business Combination Acquisition Related Costs net of Restructuring Depreciation | 19,399 | 60,630 | 34,658 |
CostofGoodsSoldRestructuringCharges | 93 | 7,141 | 20,654 |
Loss on disposal of businesses and impairment of net assets held for sale | 28 | 3,174 | 47,102 |
Change in fair value of contingent consideration liabilities | (1,022) | (585) | (393) |
Segment EBITDA | 1,785,439 | 1,368,759 | 1,328,361 |
Specialty | |||
Reconciliation of Segment Earnings Before Interest Taxes Depreciation And Amortization to Net Income Table [Line Items] | |||
Revenue | 1,867,297 | 1,508,995 | 1,464,042 |
Segment EBITDA | 223,149 | 162,673 | 161,184 |
NorthAmerica | |||
Reconciliation of Segment Earnings Before Interest Taxes Depreciation And Amortization to Net Income Table [Line Items] | |||
Revenue | 5,164,820 | 4,632,339 | 5,209,294 |
Equity in (losses) earnings of unconsolidated subsidiaries | 5,000 | (3,000) | 1,000 |
Segment EBITDA | 944,465 | 778,504 | 712,957 |
Europe | |||
Reconciliation of Segment Earnings Before Interest Taxes Depreciation And Amortization to Net Income Table [Line Items] | |||
Revenue | 6,061,948 | 5,492,184 | 5,838,124 |
Equity in (losses) earnings of unconsolidated subsidiaries | 18,000 | 8,000 | 33,000 |
Segment EBITDA | 617,825 | 427,582 | 454,220 |
us-gaap_IntersegmentEliminationMember | |||
Reconciliation of Segment Earnings Before Interest Taxes Depreciation And Amortization to Net Income Table [Line Items] | |||
Revenue | (5,561) | (4,688) | (5,351) |
Segment EBITDA | $ 0 | $ 0 | $ 0 |
Schedule of Capital Expenditure
Schedule of Capital Expenditures by Reportable Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Segment Reporting Information | |||
Capital Expenditures | $ 293,466 | $ 172,695 | $ 265,730 |
Specialty | |||
Segment Reporting Information | |||
Capital Expenditures | 23,283 | 11,356 | 12,491 |
NorthAmerica | |||
Segment Reporting Information | |||
Capital Expenditures | 129,174 | 76,300 | 131,643 |
Europe | |||
Segment Reporting Information | |||
Capital Expenditures | $ 141,009 | $ 85,039 | $ 121,596 |
Schedule of Assets by Reportabl
Schedule of Assets by Reportable Segment (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Segment Reporting Information | ||||
Receivables, net | $ 1,072,772 | $ 1,073,389 | $ 1,131,132 | |
Inventories | 2,610,515 | 2,414,612 | 2,772,777 | |
Property, plant and equipment, net | 1,298,740 | 1,248,703 | 1,234,400 | |
Operating lease assets, net | 1,361,324 | 1,353,124 | 1,308,511 | $ 1,300,000 |
Equity method investments | 180,705 | 155,224 | 139,243 | |
Other unallocated assets | 6,082,098 | 6,115,481 | 6,193,893 | |
Total assets | 12,606,154 | 12,360,533 | 12,779,956 | |
Specialty | ||||
Segment Reporting Information | ||||
Receivables, net | 102,258 | 88,485 | 75,464 | |
Inventories | 458,140 | 301,165 | 379,914 | |
Property, plant and equipment, net | 93,422 | 81,279 | 84,876 | |
Operating lease assets, net | 83,448 | 77,563 | 83,312 | |
NorthAmerica | ||||
Segment Reporting Information | ||||
Receivables, net | 384,283 | 386,289 | 419,452 | |
Inventories | 825,806 | 810,798 | 991,062 | |
Property, plant and equipment, net | 628,472 | 583,985 | 610,573 | |
Operating lease assets, net | 762,773 | 755,430 | 768,164 | |
Equity method investments | 24,515 | 18,676 | 17,624 | |
Europe | ||||
Segment Reporting Information | ||||
Receivables, net | 586,231 | 598,615 | 636,216 | |
Inventories | 1,326,569 | 1,302,649 | 1,401,801 | |
Property, plant and equipment, net | 576,846 | 583,439 | 538,951 | |
Operating lease assets, net | 515,103 | 520,131 | 457,035 | |
Equity method investments | $ 156,190 | $ 136,548 | $ 121,619 |
Segment and Geographic Inform_4
Segment and Geographic Information Schedule of Revenue by Geographic Area (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Revenues from External Customers and Long-Lived Assets | |||
Revenue | $ 13,088,504 | $ 11,628,830 | $ 12,506,109 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenue | 6,625,951 | 5,755,437 | 6,220,267 |
UNITED KINGDOM | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenue | 1,647,865 | 1,460,600 | 1,599,074 |
GERMANY | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenue | 1,621,961 | 1,522,529 | 1,578,543 |
Other countries | |||
Revenues from External Customers and Long-Lived Assets | |||
Revenue | $ 3,192,727 | $ 2,890,264 | $ 3,108,225 |
Schedule of Tangible Long-Lived
Schedule of Tangible Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Revenues from External Customers and Long-Lived Assets | |||
Long-Lived Assets | $ 2,660,064 | $ 2,601,827 | $ 2,542,911 |
UNITED STATES | |||
Revenues from External Customers and Long-Lived Assets | |||
Long-Lived Assets | 1,486,987 | 1,419,113 | 1,467,701 |
UNITED KINGDOM | |||
Revenues from External Customers and Long-Lived Assets | |||
Long-Lived Assets | 304,790 | 315,333 | 330,113 |
Other countries | |||
Revenues from External Customers and Long-Lived Assets | |||
Long-Lived Assets | 539,040 | 507,197 | 404,102 |
GERMANY | |||
Revenues from External Customers and Long-Lived Assets | |||
Long-Lived Assets | $ 329,247 | $ 360,184 | $ 340,995 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts and Reserves (Details) - SEC Schedule, 12-09, Allowance, Credit Loss [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts Disclosure [Line Items] | ||
SEC Schedule, 12-09, Valuation Allowances and Reserves, Amount | $ 52,685 | $ 57,207 |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Additions, Charge to Cost and Expense | 12,088 | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Deduction | (18,308) | |
SEC Schedule, 12-09, Valuation Allowances and Reserves, Business Acquired | $ 1,698 |