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Published: 2022-04-25 17:25:15 ET

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EX-99.1 2 exhibit991.htm EXHIBIT 99.1 Document

Exhibit 99.1

LKQ CORPORATION

Segment Information

Recast for Change in Business Segments

(unaudited)

2021


	Three Months Ended																Year Ended
($ in thousands)	March 31, 2021				June 30, 2021				September 30, 2021				December 31, 2021				December 31, 2021
Revenue
Wholesale - North America	$	1,050,644			$	1,119,104			$	1,111,130			$	1,097,343			$	4,378,221
Europe	1,463,453				1,576,661				1,525,274				1,496,560				6,061,948
Specialty	458,939				532,279				465,842				410,237				1,867,297
Self Service	199,049				208,590				195,835				183,125				786,599
Eliminations	(1,299)				(1,520)				(1,470)				(1,272)				(5,561)
Total revenue	$	3,170,786			$	3,435,114			$	3,296,611			$	3,185,993			$	13,088,504
Segment EBITDA			% of Revenue				% of Revenue				% of Revenue				% of Revenue				% of Revenue
Wholesale - North America	$	193,649	18.4	%	$	219,487	19.6	%	$	189,525	17.1	%	$	166,763	15.2	%	$	769,424	17.6	%
Europe	140,958		9.6	%	168,106		10.7	%	175,093		11.5	%	133,668		8.9	%	617,825		10.2	%
Specialty	61,482		13.4	%	79,399		14.9	%	51,644		11.1	%	30,624		7.5	%	223,149		12.0	%
Self Service	55,518		27.9	%	56,699		27.2	%	36,057		18.4	%	26,767		14.6	%	175,041		22.3	%
Total Segment EBITDA	$	451,607	14.2	%	$	523,691	15.2	%	$	452,319	13.7	%	$	357,822	11.2	%	$	1,785,439	13.6	%

2020


	Three Months Ended																Year Ended
($ in thousands)	March 31, 2020				June 30, 2020				September 30, 2020				December 31, 2020				December 31, 2020
Revenue
Wholesale - North America	$	1,134,867			$	881,699			$	1,015,427			$	1,007,884			$	4,039,877
Europe	1,363,594				1,211,185				1,484,099				1,433,306				5,492,184
Specialty	348,582				404,874				400,429				355,110				1,508,995
Self Service	155,328				129,696				148,814				158,624				592,462
Eliminations	(1,436)				(1,131)				(1,085)				(1,036)				(4,688)
Total revenue	$	3,000,935			$	2,626,323			$	3,047,684			$	2,953,888			$	11,628,830
Segment EBITDA			% of Revenue				% of Revenue				% of Revenue				% of Revenue				% of Revenue
Wholesale - North America	$	176,263	15.5	%	$	131,237	14.9	%	$	180,129	17.7	%	$	177,535	17.6	%	$	665,164	16.5	%
Europe	78,262		5.7	%	89,387		7.4	%	136,165		9.2	%	123,768		8.6	%	427,582		7.8	%
Specialty	32,232		9.2	%	52,233		12.9	%	48,340		12.1	%	29,868		8.4	%	162,673		10.8	%
Self Service	35,175		22.6	%	18,317		14.1	%	24,828		16.7	%	35,020		22.1	%	113,340		19.1	%
Total Segment EBITDA	$	321,932	10.7	%	$	291,174	11.1	%	$	389,462	12.8	%	$	366,191	12.4	%	$	1,368,759	11.8	%

2019


	Three Months Ended																Year Ended
($ in thousands)	March 31, 2019				June 30, 2019				September 30, 2019				December 31, 2019				December 31, 2019
Revenue
Wholesale - North America	$	1,179,455			$	1,183,430			$	1,167,594			$	1,152,013			$	4,682,492
Europe	1,445,541				1,516,240				1,451,483				1,424,860				5,838,124
Specialty	353,737				411,636				395,314				303,355				1,464,042
Self Service	122,854				138,336				134,553				131,059				526,802
Eliminations	(1,284)				(1,469)				(1,171)				(1,427)				(5,351)
Total revenue	$	3,100,303			$	3,248,173			$	3,147,773			$	3,009,860			$	12,506,109
Segment EBITDA			% of Revenue				% of Revenue				% of Revenue				% of Revenue				% of Revenue
Wholesale - North America	$	166,128	14.1	%	$	175,744	14.9	%	$	157,833	13.5	%	$	163,582	14.2	%	$	663,287	14.2	%
Europe	105,298		7.3	%	116,281		7.7	%	124,712		8.6	%	107,929		7.6	%	454,220		7.8	%
Specialty	37,959		10.7	%	52,367		12.7	%	45,464		11.5	%	25,394		8.4	%	161,184		11.0	%
Self Service	10,508		8.6	%	14,304		10.3	%	8,477		6.3	%	16,381		12.5	%	49,670		9.4	%
Total Segment EBITDA	$	319,893	10.3	%	$	358,696	11.0	%	$	336,486	10.7	%	$	313,286	10.4	%	$	1,328,361	10.6	%

The following unaudited tables compare certain third party revenue categories:


	Year Ended
	December 31,						2021 vs. 2020				2020 vs. 2019
($ in thousands)	2021		2020		2019		$ Change		% Change		$ Change		% Change
Wholesale - North America	$	4,036,577	$	3,785,127	$	4,409,098	$	251,450	6.6	%	$	(623,971)	(14.2	%)
Europe	6,033,396		5,470,159		5,817,547		563,237		10.3	%	(347,388)		(6.0	%)
Specialty	1,863,917		1,505,340		1,459,396		358,577		23.8	%	45,944		3.1	%
Self Service	206,626		203,087		191,805		3,539		1.7	%	11,282		5.9	%
Parts and services	12,140,516		10,963,713		11,877,846		1,176,803		10.7	%	(914,133)		(7.7	%)

Wholesale - North America	339,465		253,717		272,689		85,748		33.8	%	(18,972)		(7.0	%)
Europe	28,552		22,025		20,577		6,527		29.6	%	1,448		7.0	%

Self Service	579,971		389,375		334,997		190,596		49.0	%	54,378		16.2	%
Other	947,988		665,117		628,263		282,871		42.5	%	36,854		5.9	%
Total	$	13,088,504	$	11,628,830	$	12,506,109	$	1,459,674	12.6	%	$	(877,279)	(7.0	%)


	Year Ended								Year Ended
	December 31, 2021 vs 2020								December 31, 2020 vs 2019
	Revenue Change Attributable to:								Revenue Change Attributable to:
	Organic (1)		Acquisition and Divestiture		Foreign Exchange		Total Change (2)		Organic (1)		Acquisition and Divestiture		Foreign Exchange		Total Change (2)
Wholesale - North America	5.8	%	0.4	%	0.4	%	6.6	%	(13.7	%)	(0.3	%)	(0.1	%)	(14.2	%)
Europe	6.2	%	(0.4	%)	4.6	%	10.3	%	(6.1	%)	(0.9	%)	1.1	%	(6.0	%)
Specialty	20.2	%	3.0	%	0.6	%	23.8	%	3.0	%	0.3	%	(0.1	%)	3.1	%
Self Service	1.7	%	—	%	—	%	1.7	%	5.2	%	0.7	%	—	%	5.9	%
Parts and services	7.9	%	0.3	%	2.5	%	10.7	%	(7.6	%)	(0.5	%)	0.5	%	(7.7	%)

Wholesale - North America	33.3	%	0.1	%	0.4	%	33.8	%	(6.8	%)	—	%	(0.1	%)	(7.0	%)
Europe	24.1	%	—	%	5.5	%	29.6	%	5.4	%	—	%	1.6	%	7.0	%

Self Service	49.0	%	—	%	—	%	49.0	%	15.5	%	0.7	%	—	%	16.2	%
Other	42.3	%	—	%	0.2	%	42.5	%	5.5	%	0.4	%	—	%	5.9	%
Total	9.8	%	0.3	%	2.4	%	12.6	%	(7.0	%)	(0.5	%)	0.4	%	(7.0	%)


	Three Months Ended
	March 31,						2021 vs. 2020				2020 vs. 2019
($ in thousands)	2021		2020		2019		$ Change		% Change		$ Change		% Change
Wholesale - North America	$	968,309	$	1,058,433	$	1,108,839	$	(90,124)	(8.5	%)	$	(50,406)	(4.5	%)
Europe	1,455,370		1,357,969		1,440,841		97,401		7.2	%	(82,872)		(5.8	%)
Specialty	457,959		347,406		352,556		110,553		31.8	%	(5,150)		(1.5	%)
Self Service	50,128		48,909		46,859		1,219		2.5	%	2,050		4.4	%
Parts and services	2,931,766		2,812,717		2,949,095		119,049		4.2	%	(136,378)		(4.6	%)

Wholesale - North America	82,016		76,174		70,513		5,842		7.7	%	5,661		8.0	%
Europe	8,083		5,625		4,700		2,458		43.7	%	925		19.7	%

Self Service	148,921		106,419		75,995		42,502		39.9	%	30,424		40.0	%
Other	239,020		188,218		151,208		50,802		27.0	%	37,010		24.5	%
Total	$	3,170,786	$	3,000,935	$	3,100,303	$	169,851	5.7	%	$	(99,368)	(3.2	%)


	Three Months Ended								Three Months Ended
	March 31, 2021 vs 2020								March 31, 2020 vs 2019
	Revenue Change Attributable to:								Revenue Change Attributable to:
	Organic (1)		Acquisition and Divestiture		Foreign Exchange		Total Change (2)		Organic (1)		Acquisition and Divestiture		Foreign Exchange		Total Change (2)
Wholesale - North America	(8.9	%)	—	%	0.4	%	(8.5	%)	(4.4	%)	—	%	(0.1	%)	(4.5	%)
Europe	0.3	%	(1.4	%)	8.3	%	7.2	%	(3.4	%)	0.1	%	(2.5	%)	(5.8	%)
Specialty	30.9	%	0.4	%	0.5	%	31.8	%	(1.4	%)	0.1	%	(0.1	%)	(1.5	%)
Self Service	2.5	%	—	%	—	%	2.5	%	2.1	%	2.3	%	—	%	4.4	%
Parts and services	0.6	%	(0.6	%)	4.2	%	4.2	%	(3.5	%)	0.1	%	(1.3	%)	(4.6	%)

Wholesale - North America	7.2	%	—	%	0.5	%	7.7	%	8.1	%	—	%	(0.1	%)	8.0	%
Europe	33.1	%	—	%	10.6	%	43.7	%	22.8	%	—	%	(3.1	%)	19.7	%

Self Service	39.9	%	—	%	—	%	39.9	%	37.3	%	2.8	%	—	%	40.0	%
Other	26.6	%	—	%	0.4	%	27.0	%	23.2	%	1.4	%	(0.1	%)	24.5	%
Total	2.3	%	(0.6	%)	4.0	%	5.7	%	(2.2	%)	0.2	%	(1.2	%)	(3.2	%)


	Three Months Ended
	June 30,						2021 vs. 2020				2020 vs. 2019
($ in thousands)	2021		2020		2019		$ Change		% Change		$ Change		% Change
Wholesale - North America	$	1,024,699	$	837,760	$	1,115,526	$	186,939	22.3	%	$	(277,766)	(24.9	%)
Europe	1,569,697		1,206,330		1,510,952		363,367		30.1	%	(304,622)		(20.2	%)
Specialty	531,403		404,002		410,263		127,401		31.5	%	(6,261)		(1.5	%)
Self Service	52,472		55,066		49,956		(2,594)		(4.7	%)	5,110		10.2	%
Parts and services	3,178,271		2,503,158		3,086,697		675,113		27.0	%	(583,539)		(18.9	%)

Wholesale - North America	93,761		43,680		67,808		50,081		114.7	%	(24,128)		(35.6	%)
Europe	6,964		4,855		5,288		2,109		43.4	%	(433)		(8.2	%)

Self Service	156,118		74,630		88,380		81,488		109.2	%	(13,750)		(15.6	%)
Other	256,843		123,165		161,476		133,678		108.5	%	(38,311)		(23.7	%)
Total	$	3,435,114	$	2,626,323	$	3,248,173	$	808,791	30.8	%	$	(621,850)	(19.1	%)


	Three Months Ended								Three Months Ended
	June 30, 2021 vs 2020								June 30, 2020 vs 2019
	Revenue Change Attributable to:								Revenue Change Attributable to:
	Organic (1)		Acquisition and Divestiture		Foreign Exchange		Total Change (2)		Organic (1)		Acquisition and Divestiture		Foreign Exchange		Total Change (2)
Wholesale - North America	21.3	%	0.2	%	0.8	%	22.3	%	(24.0	%)	(0.7	%)	(0.2	%)	(24.9	%)
Europe	20.7	%	(0.9	%)	10.3	%	30.1	%	(16.6	%)	(0.7	%)	(2.9	%)	(20.2	%)
Specialty	30.1	%	0.4	%	1.1	%	31.5	%	(1.4	%)	0.3	%	(0.4	%)	(1.5	%)
Self Service	(4.7	%)	—	%	—	%	(4.7	%)	9.8	%	0.4	%	—	%	10.2	%
Parts and services	21.9	%	(0.3	%)	5.4	%	27.0	%	(16.8	%)	(0.5	%)	(1.5	%)	(18.9	%)

Wholesale - North America	113.9	%	0.1	%	0.7	%	114.7	%	(35.4	%)	—	%	(0.2	%)	(35.6	%)
Europe	31.7	%	—	%	11.7	%	43.4	%	(4.9	%)	—	%	(3.3	%)	(8.2	%)

Self Service	109.2	%	—	%	—	%	109.2	%	(15.8	%)	0.2	%	—	%	(15.6	%)
Other	108.0	%	—	%	0.5	%	108.5	%	(23.7	%)	0.1	%	(0.1	%)	(23.7	%)
Total	25.9	%	(0.3	%)	5.2	%	30.8	%	(17.2	%)	(0.5	%)	(1.5	%)	(19.1	%)


	Three Months Ended
	September 30,						2021 vs. 2020				2020 vs. 2019
($ in thousands)	2021		2020		2019		$ Change		% Change		$ Change		% Change
Wholesale - North America	$	1,024,756	$	955,228	$	1,096,596	$	69,528	7.3	%	$	(141,368)	(12.9	%)
Europe	1,519,682		1,479,174		1,446,392		40,508		2.7	%	32,782		2.3	%
Specialty	465,027		399,554		394,204		65,473		16.4	%	5,350		1.4	%
Self Service	51,843		51,773		48,806		70		0.1	%	2,967		6.1	%
Parts and services	3,061,308		2,885,729		2,985,998		175,579		6.1	%	(100,269)		(3.4	%)

Wholesale - North America	85,719		59,989		70,937		25,730		42.9	%	(10,948)		(15.4	%)
Europe	5,592		4,925		5,091		667		13.6	%	(166)		(3.3	%)

Self Service	143,992		97,041		85,747		46,951		48.4	%	11,294		13.2	%
Other	235,303		161,955		161,775		73,348		45.3	%	180		0.1	%
Total	$	3,296,611	$	3,047,684	$	3,147,773	$	248,927	8.2	%	$	(100,089)	(3.2	%)


	Three Months Ended								Three Months Ended
	September 30, 2021 vs 2020								September 30, 2020 vs 2019
	Revenue Change Attributable to:								Revenue Change Attributable to:
	Organic (1)		Acquisition and Divestiture		Foreign Exchange		Total Change (2)		Organic (1)		Acquisition and Divestiture		Foreign Exchange		Total Change (2)
Wholesale - North America	6.2	%	0.7	%	0.4	%	7.3	%	(12.1	%)	(0.7	%)	(0.1	%)	(12.9	%)
Europe	0.1	%	—	%	2.6	%	2.7	%	(0.7	%)	(1.5	%)	4.5	%	2.3	%
Specialty	13.7	%	2.1	%	0.6	%	16.4	%	1.1	%	0.3	%	(0.1	%)	1.4	%
Self Service	0.1	%	—	%	—	%	0.1	%	6.1	%	—	%	—	%	6.1	%
Parts and services	4.0	%	0.5	%	1.5	%	6.1	%	(4.5	%)	(1.0	%)	2.1	%	(3.4	%)

Wholesale - North America	42.3	%	0.3	%	0.3	%	42.9	%	(15.4	%)	—	%	(0.1	%)	(15.4	%)
Europe	10.9	%	—	%	2.6	%	13.6	%	(8.8	%)	—	%	5.5	%	(3.3	%)

Self Service	48.4	%	—	%	—	%	48.4	%	13.2	%	—	%	—	%	13.2	%
Other	45.1	%	0.1	%	0.1	%	45.3	%	(0.1	%)	—	%	0.2	%	0.1	%
Total	6.2	%	0.5	%	1.5	%	8.2	%	(4.3	%)	(0.9	%)	2.0	%	(3.2	%)


	Three Months Ended
	December 31,						2021 vs. 2020				2020 vs. 2019
($ in thousands)	2021		2020		2019		$ Change		% Change		$ Change		% Change
Wholesale - North America	$	1,018,813	$	933,706	$	1,088,137	$	85,107	9.1	%	$	(154,431)	(14.2	%)
Europe	1,488,647		1,426,686		1,419,362		61,961		4.3	%	7,324		0.5	%
Specialty	409,528		354,378		302,373		55,150		15.6	%	52,005		17.2	%
Self Service	52,183		47,339		46,184		4,844		10.2	%	1,155		2.5	%
Parts and services	2,969,171		2,762,109		2,856,056		207,062		7.5	%	(93,947)		(3.3	%)

Wholesale - North America	77,967		73,874		63,431		4,093		5.5	%	10,443		16.5	%
Europe	7,913		6,620		5,498		1,293		19.5	%	1,122		20.4	%

Self Service	130,942		111,285		84,875		19,657		17.7	%	26,410		31.1	%
Other	216,822		191,779		153,804		25,043		13.1	%	37,975		24.7	%
Total	$	3,185,993	$	2,953,888	$	3,009,860	$	232,105	7.9	%	$	(55,972)	(1.9	%)


	Three Months Ended								Three Months Ended
	December 31, 2021 vs 2020								December 31, 2020 vs 2019
	Revenue Change Attributable to:								Revenue Change Attributable to:
	Organic (1)		Acquisition and Divestiture		Foreign Exchange		Total Change (2)		Organic (1)		Acquisition and Divestiture		Foreign Exchange		Total Change (2)
Wholesale - North America	8.2	%	0.6	%	0.2	%	9.1	%	(14.3	%)	0.1	%	0.1	%	(14.2	%)
Europe	5.7	%	0.5	%	(1.8	%)	4.3	%	(3.1	%)	(1.8	%)	5.4	%	0.5	%
Specialty	5.7	%	9.6	%	0.3	%	15.6	%	16.6	%	0.5	%	0.1	%	17.2	%
Self Service	10.2	%	—	%	—	%	10.2	%	2.5	%	—	%	—	%	2.5	%
Parts and services	6.6	%	1.7	%	(0.8	%)	7.5	%	(5.2	%)	(0.8	%)	2.7	%	(3.3	%)

Wholesale - North America	5.2	%	0.1	%	0.2	%	5.5	%	16.6	%	—	%	(0.1	%)	16.5	%
Europe	20.8	%	—	%	(1.2	%)	19.5	%	13.6	%	—	%	6.8	%	20.4	%

Self Service	17.7	%	—	%	—	%	17.7	%	31.1	%	—	%	—	%	31.1	%
Other	13.1	%	—	%	—	%	13.1	%	24.4	%	—	%	0.2	%	24.7	%
Total	7.0	%	1.6	%	(0.8	%)	7.9	%	(3.7	%)	(0.8	%)	2.6	%	(1.9	%)

(1) We define organic revenue growth as total revenue growth from continuing operations excluding the effects of acquisitions and divestitures (i.e., revenue generated from the date of acquisition to the first anniversary of that acquisition, net of reduced revenue due to the disposal of businesses) and foreign currency movements (i.e., impact of translating revenue at prior period exchange rates). Organic revenue growth includes incremental sales from both existing and new (i.e., opened within the last twelve months) locations and is derived from expanding business with existing customers, securing new customers and offering additional products and services. We believe that organic revenue growth is a key performance indicator as this statistic measures our ability to serve and grow our customer base successfully.

(2) The sum of the individual revenue change components may not equal the total percentage change due to rounding.

The following unaudited table reconciles Net Income to EBITDA and Segment EBITDA:

2021


	Three Months Ended								Year Ended
(In thousands)	March 31, 2021		June 30, 2021		September 30, 2021		December 31, 2021		December 31, 2021
Net income	$	266,332	$	305,008	$	284,006	$	236,778	$	1,092,124
Less: net income (loss) attributable to continuing noncontrolling interest	419		384		(49)		497		1,251

Net income attributable to LKQ stockholders	265,913		304,624		284,055		236,281		1,090,873
Subtract:
Net income from discontinued operations	—		—		—		648		648

Net income from continuing operations attributable to LKQ stockholders	265,913		304,624		284,055		235,633		1,090,225
Add:
Depreciation and amortization	65,801		64,896		63,995		65,300		259,992
Depreciation and amortization - cost of goods sold	5,615		5,649		5,947		5,888		23,099
Depreciation and amortization - restructuring expenses (1)	181		198		408		125		912
Interest expense, net of interest income	24,179		16,172		15,427		14,514		70,292
Loss on debt extinguishment	—		23,564		—		—		23,564
Provision for income taxes	92,969		107,719		89,340		40,563		330,591
EBITDA	454,658		522,822		459,172		362,023		1,798,675
Subtract:
Equity in earnings of unconsolidated subsidiaries	5,819		3,478		7,731		5,909		22,937
Equity investment fair value adjustments	4,739		1,061		2,445		2,596		10,841


Add:
Restructuring and acquisition related expenses (1)	7,704		4,871		2,117		4,707		19,399
Restructuring expenses - cost of goods sold	(163)		—		—		256		93


Loss (gain) on disposal of businesses and impairment of net assets held for sale	15		(597)		822		(212)		28

Change in fair value of contingent consideration liabilities	(49)		1,134		384		(447)		1,022
Segment EBITDA	$	451,607	$	523,691	$	452,319	$	357,822	$	1,785,439







(1) The sum of these two captions represents the total amount that is reported in Restructuring and acquisition related expenses in our Unaudited Consolidated Statements of Income.

2020


	Three Months Ended								Year Ended
(In thousands)	March 31, 2020		June 30, 2020		September 30, 2020		December 31, 2020		December 31, 2020
Net income	$	145,979	$	118,770	$	193,931	$	181,734	$	640,414
Less: net income (loss) attributable to continuing noncontrolling interest	740		(22)		448		722		1,888
Less: net income attributable to discontinued noncontrolling interest	103		—		—		—		103
Net income attributable to LKQ stockholders	145,136		118,792		193,483		181,012		638,423
Subtract:
Net (loss) income from discontinued operations	(915)		277		—		543		(95)
Net income attributable to discontinued noncontrolling interest	(103)		—		—		—		(103)
Net income from continuing operations attributable to LKQ stockholders	146,154		118,515		193,483		180,469		638,621
Add:
Depreciation and amortization	65,495		65,747		68,655		72,395		272,292
Depreciation and amortization - cost of goods sold	5,085		4,010		7,067		5,510		21,672
Depreciation and amortization - restructuring expenses (1)	799		3,173		605		956		5,533
Interest expense, net of interest income	25,931		25,616		25,182		25,145		101,874
Loss on debt extinguishment	12,751		—		—		—		12,751
Provision for income taxes	60,411		41,869		78,510		68,708		249,498
EBITDA	316,626		258,930		373,502		353,183		1,302,241
Subtract:
Equity in earnings of unconsolidated subsidiaries	516		(2,649)		4,113		3,032		5,012



Add:
Restructuring and acquisition related expenses (1)	6,171		21,777		19,890		12,792		60,630
Restructuring expenses - cost of goods sold	(4)		5,665		833		647		7,141


(Gain) loss on disposal of businesses and impairment of net assets held for sale	(249)		2,485		(503)		1,441		3,174

Change in fair value of contingent consideration liabilities	(96)		(332)		(147)		1,160		585
Segment EBITDA	$	321,932	$	291,174	$	389,462	$	366,191	$	1,368,759







(1) The sum of these two captions represents the total amount that is reported in Restructuring and acquisition related expenses in our Unaudited Consolidated Statements of Income.

2019


	Three Months Ended								Year Ended
(In thousands)	March 31, 2019		June 30, 2019		September 30, 2019		December 31, 2019		December 31, 2019
Net income	$	99,063	$	152,105	$	152,593	$	141,273	$	545,034
Less: net income (loss) attributable to continuing noncontrolling interest	1,015		1,352		(46)		479		2,800
Less: net income attributable to discontinued noncontrolling interest	—		192		376		406		974
Net income attributable to LKQ stockholders	98,048		150,561		152,263		140,388		541,260
Subtract:
Net income from discontinued operations	—		398		781		440		1,619
Net income attributable to discontinued noncontrolling interest	—		(192)		(376)		(406)		(974)
Net income from continuing operations attributable to LKQ stockholders	98,048		150,355		151,858		140,354		540,615
Add:
Depreciation and amortization	71,002		70,834		71,513		77,421		290,770
Depreciation and amortization - cost of goods sold	5,205		5,320		5,391		5,396		21,312
Depreciation and amortization - restructuring expenses (1)	—		—		974		1,350		2,324
Interest expense, net of interest income	36,089		35,884		32,104		32,197		136,274
Gain on debt extinguishment	—		—		(128)		—		(128)
Provision for income taxes	51,550		55,825		57,747		50,208		215,330
EBITDA	261,894		318,218		319,459		306,926		1,206,497
Subtract:
Equity in (losses) earnings of unconsolidated subsidiaries	(39,549)		1,572		4,232		1,468		(32,277)



Gain due to resolution of acquisition related matter	—		—		—		12,063		12,063
Gains on bargain purchases and previously held equity interests	—		—		—		1,157		1,157
Add:
Restructuring and acquisition related expenses (1)	3,307		8,377		7,955		15,019		34,658
Restructuring expenses - cost of goods sold	—		—		17,130		3,524		20,654


Loss (gain) on disposal of businesses and impairment of net assets held for sale	15,023		33,497		(3,601)		2,183		47,102

Change in fair value of contingent consideration liabilities	120		176		(225)		322		393
Segment EBITDA	$	319,893	$	358,696	$	336,486	$	313,286	$	1,328,361







(1) The sum of these two captions represents the total amount that is reported in Restructuring and acquisition related expenses in our Unaudited Consolidated Statements of Income.

We have presented EBITDA solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our operating performance and the value of our business. We calculate EBITDA 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. We believe EBITDA provides insight into our profitability trends and allows management and investors to analyze our operating results with the impact of continuing noncontrolling interest and without the impact of discontinued noncontrolling interest, discontinued operations, depreciation, amortization, interest (which includes gains and losses on debt extinguishment) and income tax expense. We believe EBITDA is used by investors, securities analysts and other interested parties in evaluating the operating performance and the value of other companies, many of which present EBITDA when reporting their results.

We have presented Segment EBITDA solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our segment profit and loss and underlying trends in our ongoing operations. 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. Our chief operating decision maker, who is our Chief Executive Officer, uses Segment EBITDA as the key measure of our segment profit or loss. We use Segment EBITDA to compare profitability among our segments and evaluate business strategies. This financial measure is included in the metrics used to determine incentive compensation for our senior management. 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.

EBITDA and Segment EBITDA should not be construed as alternatives to operating income, net income or net cash provided by operating activities, as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report EBITDA or Segment EBITDA information calculate EBITDA or Segment EBITDA in the same manner as we do and, accordingly, our calculations are not necessarily comparable to similarly-named measures of other companies and may not be appropriate measures for performance relative to other companies.

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

Important disclosures

Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.

Nothing on this website should be considered an offer, solicitation of an offer, or advice to buy or sell securities.
Past performance is no guarantee of future results. Any historical returns, expected returns [or probability projections] are hypothetical in nature and may not reflect actual future performance.
All the strategies assume investments in equity invstrumenta only and are more relevant for "agressive investment profile". Eastern European flagship strategy assumes using up to 20% leverage of total portfolio. GlobalCommodities and US Growth strategy currently assume no leverage.
Results for the Enhanced Investments strategies as compared to the performance of Illustrative Benchmarks is for informational purposes only. Our investment program does not mirror that of the Illustrative Benchmarks and the volatility may be materially different from the volatility of Illustrative Benchmarks. Reference or comparison to an Illustrative Benchmark does not imply that strategies of Enhanced Investments will be constructed in the same way as the Illustrative Benchmark or achieve returns, volatility, or other results similar to those of the Illustrative Benchmark. The S&P 500 is an unmanaged market capitalization-weighted index of 500 common stocks chosen for market size, liquidity, and industry group representation to represent U.S. equity performance.
Performance results were prepared by Enhanced Investments, and have not been compiled, reviewed or audited by an independent accountant. Performance estimates are subject to future adjustment and revision. Investors should be aware that a loss of investment is possible. Account holdings are for illustrative purposes only and are not investment recommendations. Additional information, including (i) the calculation methodology; and (ii) a list showing the contribution of each holding to the portfolio’s performance during the time period will be provided upon request.
All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.