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Segment and Geographic Information
 6 Months Ended
Jun. 30, 2023
Segment Reporting [Abstract]  
Segment and Geographic Information Segment and Geographic Information
We have four operating segments: Wholesale - North America, Europe, Specialty, and Self Service, each of which is presented as a reportable segment.

The segments are organized based on a combination of geographic areas served and type of product lines offered. The segments are managed separately as the businesses serve different customers and are affected by different economic conditions. Wholesale - North America and Self Service have similar economic characteristics and have common products and services, customers and methods of distribution. We are reporting these operating segments separately to provide greater transparency to investors.

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

Wholesale - North AmericaEuropeSpecialtySelf ServiceEliminationsConsolidated
Three Months Ended June 30, 2023
Revenue:
Third Party$1,199 $1,638 $442 $169 $— $3,448 
Intersegment— — 1 — (1)— 
Total segment revenue$1,199 $1,638 $443 $169 $(1)$3,448 
Segment EBITDA$248 $188 $42 $7 $— $485 
Total depreciation and amortization (1)
20 39 8 3 — 70 
Three Months Ended June 30, 2022
Revenue:
Third Party$1,144 $1,477 $512 $208 $— $3,341 
Intersegment— — 1 — (1)— 
Total segment revenue$1,144 $1,477 $513 $208 $(1)$3,341 
Segment EBITDA$214 $160 $69 $32 $— $475 
Total depreciation and amortization (1)
18 39 7 4 — 68 
Wholesale - North AmericaEuropeSpecialtySelf ServiceEliminationsConsolidated
Six Months Ended June 30, 2023
Revenue:
Third Party$2,428 $3,193 $838 $338 $— $6,797 
Intersegment— — 2 — (2)— 
Total segment revenue$2,428 $3,193 $840 $338 $(2)$6,797 
Segment EBITDA$500 $339 $73 $29 $— $941 
Total depreciation and amortization (1)
39 73 16 7 — 135 
Six Months Ended June 30, 2022
Revenue:
Third Party$2,345 $2,965 $972 $407 $— $6,689 
Intersegment— — 2 — (2)— 
Total segment revenue$2,345 $2,965 $974 $407 $(2)$6,689 
Segment EBITDA$432 $291 $127 $72 $— $922 
Total depreciation and amortization (1)
37 73 15 8 — 133 
(1)    Amounts presented include depreciation and amortization expense recorded within Cost of goods sold, SG&A expenses and Restructuring and transaction 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 Net Income attributable to LKQ stockholders excluding discontinued operations; depreciation, amortization; interest; gains and losses on debt extinguishment; income tax expense; restructuring and transaction 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; impairment charges; and direct impacts of the Ukraine/Russia conflict and related sanctions (including provisions for and subsequent adjustments to reserves for asset recoverability and expenditures to support our employees and their families).
The table below provides a reconciliation of Net Income to Segment EBITDA (in millions):

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Net income$282 $420 $552 $693 
Less: net income attributable to continuing noncontrolling interest1 — 1 — 
Net income attributable to LKQ stockholders281 420 551 693 
Less: net income from discontinued operations— — — 4 
Net income from continuing operations attributable to LKQ stockholders281420551689
Adjustments - continuing operations attributable to LKQ stockholders:
Depreciation and amortization70 68 135 133 
Interest expense, net of interest income42 14 75 29 
Loss on debt extinguishment— — 1 — 
Provision for income taxes109 127 203 216 
Equity in earnings of unconsolidated subsidiaries (1)
(2)(4)(5)(6)
Gains on foreign exchange contracts - acquisition related (2)
(23)— (46)— 
Equity investment fair value adjustments— 2 1 3 
Restructuring and transaction related expenses (3)
8 4 26 7 
Gain on disposal of businesses (4)
— (155)— (155)
Losses on previously held equity interests— — — 1 
Direct impacts of Ukraine/Russia conflict (5)
— (1)— 5 
Segment EBITDA$485 $475 $941 $922 
(1)    Refer to Note 8, "Equity Method Investments" for further information.
(2)    Refer to Note 3, "Uni-Select Acquisition" and Note 17, "Derivative Instruments and Hedging Activities" for further information.
(3)    Refer to Note 11, "Restructuring and Transaction Related Expenses" for further information.
(4)    Refer to "Other Divestitures (Not Classified in Discontinued Operations)" in Note 2, "Discontinued Operations and Divestitures" for further information.
(5)    Adjustments include provisions for and subsequent adjustments to reserves for asset recoverability (receivables and inventory) and expenditures to support our employees and their families in Ukraine.

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

Three Months Ended June 30,Six Months Ended June 30,
2023202220232022
Capital Expenditures
Wholesale - North America
$16 $16 $36 $45 
Europe23 19 56 42 
Specialty5 4 18 8 
Self Service22 1 26 4 
Total capital expenditures$66 $40 $136 $99 
The following table presents assets by reportable segment (in millions):
June 30, 2023December 31, 2022
Receivables, net of allowance for credit losses
Wholesale - North America
$399 $351 
Europe700 547 
Specialty147 92 
Self Service11 8 
Total receivables, net of allowance for credit losses1,257 998 
Inventories
Wholesale - North America
857 822 
Europe1,381 1,418 
Specialty390 469 
Self Service53 43 
Total inventories2,681 2,752 
Property, plant and equipment, net
Wholesale - North America
502 505 
Europe587 547 
Specialty101 94 
Self Service108 90 
Total property, plant and equipment, net1,298 1,236 
Operating lease assets, net
Wholesale - North America
566 541 
Europe484 466 
Specialty85 85 
Self Service142 135 
Total operating lease assets, net1,277 1,227 
Other unallocated assets7,642 5,825 
Total assets$14,155 $12,038 

We report net receivables; inventories; net property, plant and equipment; and net operating lease assets 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 expenses and other current and noncurrent assets, goodwill, other intangibles and equity method investments.

Our largest countries of operation are the U.S., followed by Germany and the U.K. 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.

The following table sets forth our tangible long-lived assets by geographic area (in millions):

June 30, 2023December 31, 2022
Long-lived assets
United States$1,420 $1,371 
Germany309 290 
United Kingdom272 256 
Other countries574 546 
Total long-lived assets$2,575 $2,463