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Equity Incentive Plans
 9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Equity Incentive Plans Stock-Based Compensation
In order to attract and retain employees, non-employee directors, consultants, and other persons associated with us, we grant equity-based awards under the LKQ Corporation 1998 Equity Incentive Plan (the “Equity Incentive Plan”). We have granted restricted stock units ("RSUs"), stock options, and restricted stock under the Equity Incentive Plan. 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, the Company must report positive diluted earnings per share, subject to certain adjustments, during any fiscal year period within five years following the grant date. Each RSU converts into one share of LKQ common stock on the applicable vesting date. The grant date fair value of RSUs is based on the market price of LKQ stock on the grant date.
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.
The fair value of RSUs that vested during the nine months ended September 30, 2020 was $26 million; 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 nine months ended September 30, 2020:
Number
Outstanding		Weighted
Average
Grant Date
Fair Value		Weighted Average Remaining Contractual Term
(in years)
Aggregate Intrinsic Value
   (in thousands) (1)
Unvested as of January 1, 20201,612,026 $31.72 
Granted
901,215 $31.67 
Vested(883,578)$31.52 
Forfeited / Canceled(87,071)$32.79 
Unvested as of September 30, 20201,542,592 $31.74 
Expected to vest after September 30, 20201,344,073 $31.65 2.9$37,271 
(1)    The aggregate intrinsic value of expected to vest RSUs represents the total pretax intrinsic value (the fair value of the Company'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 RSUs vested. This amount changes based on the market price of the Company’s common stock.

In 2019 and 2020, we granted performance-based three-year RSUs ("PSUs") to certain employees, including our 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 the Company's 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.
The following table summarizes activity related to our PSUs under the Equity Incentive Plan for the nine months ended September 30, 2020:
Number
Outstanding		Weighted
Average
Grant Date
Fair Value		Weighted Average Remaining Contractual Term
(in years)
Aggregate Intrinsic Value
   (in thousands) (1)
Unvested as of January 1, 2020136,170 $27.69 
Granted (2)
164,152 $31.85 
Forfeited / Canceled(7,375)$29.65 
Unvested as of September 30, 2020292,947 $29.97 
Expected to vest after September 30, 2020292,947 $29.97 1.7$8,123 
(1)     The aggregate intrinsic value of expected to vest PSUs represents the total pretax intrinsic value (the fair value of the Company's stock on the last day of each period multiplied by the number of units at target) 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 the Company’s common stock and the achievement of the performance metrics relative to the established targets.
(2)    Represents the number of PSUs at target payout.
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 granted during the nine months ended September 30, 2020. No options vested during the nine months ended September 30, 2020.
The following table summarizes activity related to our stock options under the Equity Incentive Plan for the nine months ended September 30, 2020:
Number
Outstanding		Weighted
Average Exercise Price		Weighted Average Remaining Contractual Term
(in years)		Aggregate Intrinsic Value
(in thousands)
Balance as of January 1, 2020114,594 $12.26 
Exercised(112,472)$11.88 $2,629 
Canceled(2,122)$32.31 
Balance as of September 30, 2020— $— — $— 
All stock options were exercised or canceled as of September 30, 2020.
Stock-Based Compensation Expense
Pre-tax stock-based compensation expense for RSUs and PSUs totaled $7 million and $23 million for the three and nine months ended September 30, 2020, respectively, and $7 million and $21 million for the three and nine months ended September 30, 2019, respectively. As of September 30, 2020, unrecognized compensation expense related to unvested RSUs and PSUs was $44 million. 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 target.