v3.26.3
Segment and Geographic Information
 9 Months Ended
Sep. 30, 2026
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
We have three operating segments: North America; Europe; and Specialty, each of which are presented as a reportable segment. The segments are organized based on a combination of geographic regions served and the types of product lines offered. They are managed separately, as each business serves distinct customer bases and is impacted by different economic conditions.

The following tables present our financial performance by reportable segment for the periods indicated (in millions):

North AmericaEuropeSpecialtyEliminationsConsolidated
Three Months Ended September 30, 2026
Revenue:
Third Party$1,401 $1,453 $465 $— $3,319 
Intersegment1 — — (1)— 
Total segment revenue$1,402 $1,453 $465 $(1)$3,319 
Less: (1)
Cost of goods sold808 921 355 
Selling, general and administrative expenses394 476 89 
Other segment items (2)
(3)(12)(4)
Segment EBITDA$203 $68 $25 $— $296 
Total depreciation and amortization (3)
$47 $45 $11 $— $103 
Three Months Ended September 30, 2025
Revenue:
Third Party$1,423 $1,620 $456 $— $3,499 
Intersegment— — 1 (1)— 
Total segment revenue$1,423 $1,620 $457 $(1)$3,499 
Less: (1)
Cost of goods sold825 991 343 
Selling, general and administrative expenses401 474 83 
Other segment items (2)
(2)(7)(3)
Segment EBITDA$199 $162 $34 $— $395 
Total depreciation and amortization (3)
$49 $48 $8 $— $105 
North AmericaEuropeSpecialtyEliminationsConsolidated
Nine Months Ended September 30, 2026
Revenue:
Third Party$4,307 $4,529 $1,360 $— $10,196 
Intersegment1 — 2 (3)— 
Total segment revenue$4,308 $4,529 $1,362 $(3)$10,196 
Less: (1)
Cost of goods sold2,480 2,803 1,028 
Selling, general and administrative expenses1,224 1,452 267 
Other segment items (2)
(9)(29)(9)
Segment EBITDA$613 $303 $76 $— $992 
Total depreciation and amortization (3)
$138 $139 $28 $— $305 
Nine Months Ended September 30, 2025
Revenue:
Third Party$4,277 $4,749 $1,313 $— $10,339 
Intersegment— — 3 (3)— 
Total segment revenue$4,277 $4,749 $1,316 $(3)$10,339 
Less: (1)
Cost of goods sold2,433 2,910 989 
Selling, general and administrative expenses1,217 1,407 241 
Other segment items (2)
(13)(22)(8)
Segment EBITDA$640 $454 $94 $— $1,188 
Total depreciation and amortization (3)
$148 $131 $24 $— $303 
(1)    The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker ("CODM"). Intersegment expenses are included within the amounts shown.
(2)    Amounts primarily represent other non operating income and expenses within each segment, as well as reconciling items to remove depreciation - cost of goods sold and the direct impacts of the Ukraine/Russia conflict, which are excluded from the calculation of Segment EBITDA.
(3)    Amounts presented include depreciation and amortization expense recorded within Cost of goods sold and Restructuring and transaction related expenses.

For the nine months ended September 30, 2026 and 2025, the Company's CODM was Justin Jude, Chief Executive Officer. See Note 19, "Subsequent Event" regarding changes to the CODM and Chief Executive Officer effective on October 23, 2026.

The key measure of segment profit or loss reviewed by our CODM, our Chief Executive Officer, is Segment EBITDA. The CODM uses 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 Net Income and Loss excluding net income and loss attributable to noncontrolling interest; income and loss from discontinued operations; depreciation; amortization; interest; gains and losses on debt extinguishment; income tax expense; restructuring and transaction related expenses; 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; impairment charges; and direct impacts of the Ukraine/Russia conflict.
The table below provides a reconciliation of Net Income (Loss) to Segment EBITDA (in millions):

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Net (loss) income$(27)$180 $188 $542 
Less: net (loss) income attributable to continuing noncontrolling interest(1)— (1)1 
Net (loss) income attributable to LKQ stockholders(26)180 189 541 
Less: net (loss) income from discontinued operations(2)2 2 20 
Net (loss) income from continuing operations attributable to LKQ stockholders(24)178 187 521 
Adjustments:
Depreciation and amortization103 105 305 303 
Interest expense, net of interest income53 53 153 158 
Provision for income taxes32 45 124 173 
Equity in (earnings) losses of unconsolidated subsidiaries (1)
(2)— 42 — 
Equity investment fair value adjustments(1)— (1)(1)
Restructuring and transaction related expenses (2)
20 14 67 33 
Impairment of goodwill (3)
88 — 88 — 
Impairment of net assets held for sale (4)
23 — 23 — 
Direct impacts of Ukraine/Russia conflict (5)
4 — 4 1 
Segment EBITDA$296 $395 $992 $1,188 
(1)    See Note 6, "Equity Method Investments" for further information.
(2)    Excludes amounts related to Restructuring - Depreciation expense. See Note 8, "Restructuring and Transaction Related Expenses" for further information on restructuring activities.
(3)    See Note 5, "Intangible Assets" for further information.
(4)    See Note 2, "Business Combinations and Divestitures" for further information.
(5)    Amounts primarily include inventory write-downs and property, plant, and equipment impairment charges for operations impacted by the Ukraine/Russia conflict.

The following table presents capital expenditures by reportable segment (in millions):

Three Months Ended September 30,Nine Months Ended September 30,
2026202520262025
Capital Expenditures
North America
$18 $20 $54 $58 
Europe15 26 64 85 
Specialty6 5 12 12 
Total capital expenditures$39 $51 $130 $155 

We report net receivables; inventories; net property, plant and equipment; and net operating lease assets by segment as that information is used by the CODM 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 expenses and other current and noncurrent assets, goodwill, other intangibles, and equity method investments.
The following table presents assets by reportable segment (in millions):
September 30, 2026December 31, 2025
Receivables, net of allowance for credit losses
North America
$536 $495 
Europe675 552 
Specialty143 157 
Total receivables, net of allowance for credit losses1,354 1,204 
Inventories
North America
1,403 1,479 
Europe1,411 1,496 
Specialty448 451 
Total inventories3,262 3,426 
Property, plant and equipment, net
North America
649 651 
Europe624 695 
Specialty123 106 
Total property, plant and equipment, net1,396 1,452 
Operating lease assets, net
North America
611 641 
Europe528 544 
Specialty144 147 
Total operating lease assets, net1,283 1,332 
Other unallocated assets7,487 7,723 
Total assets$14,782 $15,137 

Our largest countries of operation are the U.S., followed by Germany and the United Kingdom ("U.K."). Additional European operations are located in the Netherlands, Italy, Czech Republic, Belgium, Austria, Slovakia, France 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. The following table sets forth our tangible long-lived assets by geographic area (in millions):

September 30, 2026December 31, 2025
Long-lived assets
United States$1,302 $1,313 
Germany338 369 
United Kingdom292 321 
Other countries747 781 
Total long-lived assets$2,679 $2,784