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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________________________________ 
FORM 10-Q
____________________________ 
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Quarterly Period Ended September 30, 2021
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the Transition Period from              to
Commission File Number: 000-50404
____________________________ 
LKQ CORPORATION
(Exact name of registrant as specified in its charter)
____________________________ 
Delaware 36-4215970
(State or other jurisdiction of
incorporation or organization)
 (I.R.S. Employer
Identification No.)
500 West Madison Street, Suite 2800 
Chicago,Illinois60661
(Address of principal executive offices) (Zip Code)
Registrant’s telephone number, including area code: (312621-1950
Securities registered pursuant to Section 12(b) of the Act:
Title of Each ClassTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $.01 per shareLKQNASDAQ Global Select Market
________________________________________
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes      No 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes    No 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
Large Accelerated FilerAccelerated Filer
Non-accelerated Filer
Smaller Reporting Company
Emerging Growth Company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes    No 
At October 29, 2021, the registrant had outstanding an aggregate of 291,491,183 shares of Common Stock.

1


PART I
FINANCIAL INFORMATION

Item 1. Financial Statements

LKQ CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
Three Months EndedNine Months Ended
September 30,September 30,
 2021202020212020
Revenue$3,296,611 $3,047,684 $9,902,511 $8,674,942 
Cost of goods sold1,953,219 1,849,142 5,849,696 5,251,520 
Gross margin1,343,392 1,198,542 4,052,815 3,423,422 
Selling, general and administrative expenses897,896 813,893 2,648,128 2,451,073 
Restructuring and acquisition related expenses2,525 20,495 15,479 52,415 
Impairment of net assets held for sale and (gain) loss on disposal of businesses822 (503)240 1,733 
Depreciation and amortization63,995 68,655 194,692 199,897 
Operating income378,154 296,002 1,194,276 718,304 
Other expense (income):
Interest expense, net of interest income15,427 25,182 55,778 76,729 
Loss on debt extinguishment  23,564 12,751 
Other (income) expense, net(2,888)2,492 (13,412)(9,304)
Total other expense, net12,539 27,674 65,930 80,176 
Income from continuing operations before provision for income taxes365,615 268,328 1,128,346 638,128 
Provision for income taxes89,340 78,510 290,028 180,790 
Equity in earnings of unconsolidated subsidiaries7,731 4,113 17,028 1,980 
Income from continuing operations284,006 193,931 855,346 459,318 
Net loss from discontinued operations   (638)
Net income284,006 193,931 855,346 458,680 
Less: net (loss) income attributable to continuing noncontrolling interest(49)448 754 1,166 
Less: net income attributable to discontinued noncontrolling interest   103 
Net income attributable to LKQ stockholders$284,055 $193,483 $854,592 $457,411 
Basic earnings per share: (1)
Income from continuing operations$0.97 $0.64 $2.86 $1.51 
Net loss from discontinued operations   (0.00)
Net income0.97 0.64 2.86 1.50 
Less: net (loss) income attributable to continuing noncontrolling interest(0.00)0.00 0.00 0.00 
Less: net income attributable to discontinued noncontrolling interest   0.00 
Net income attributable to LKQ stockholders$0.97 $0.64 $2.86 $1.50 
Diluted earnings per share: (1)
Income from continuing operations$0.96 $0.64 $2.85 $1.51 
Net loss from discontinued operations   (0.00)
Net income0.96 0.64 2.85 1.50 
Less: net (loss) income attributable to continuing noncontrolling interest(0.00)0.00 0.00 0.00 
Less: net income attributable to discontinued noncontrolling interest   0.00 
Net income attributable to LKQ stockholders$0.96 0.64 $2.85 $1.50 
(1) The sum of the individual earnings per share amounts may not equal the total due to rounding.
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
2




LKQ CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Comprehensive Income
(In thousands)
Three Months EndedNine Months Ended
September 30,September 30,
 2021202020212020
Net income$284,006 $193,931 $855,346 $458,680 
Less: net (loss) income attributable to continuing noncontrolling interest(49)448 754 1,166 
Less: net income attributable to discontinued noncontrolling interest   103 
Net income attributable to LKQ stockholders284,055 193,483 854,592 457,411 
Other comprehensive income (loss):
Foreign currency translation, net of tax(48,139)70,178 (50,847)(2,453)
Net change in unrealized gains/losses on cash flow hedges, net of tax
 222 869 (7,130)
Net change in unrealized gains/losses on pension plans, net of tax
306 2,803 932 4,798 
Other comprehensive income (loss) from unconsolidated subsidiaries348 (3,162)(520)(4,052)
Other comprehensive income (loss)(47,485)70,041 (49,566)(8,837)
Comprehensive income236,521 263,972 805,780 449,843 
Less: comprehensive (loss) income attributable to continuing noncontrolling interest(49)448 754 1,166 
Less: comprehensive income attributable to discontinued noncontrolling interest
   103 
Comprehensive income attributable to LKQ stockholders
$236,570 $263,524 $805,026 $448,574 
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
3



LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
September 30,December 31,
20212020
Assets
Current assets:
Cash and cash equivalents$402,703 $312,154 
Receivables, net1,185,004 1,073,389 
Inventories2,423,853 2,414,612 
Prepaid expenses and other current assets247,838 233,877 
Total current assets4,259,398 4,034,032 
Property, plant and equipment, net1,192,357 1,248,703 
Operating lease assets, net1,341,064 1,353,124 
Intangible assets:
Goodwill4,525,474 4,591,569 
Other intangibles, net755,426 814,219 
Equity method investments178,410 155,224 
Other noncurrent assets208,731 163,662 
Total assets$12,460,860 $12,360,533 
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable$1,262,976 $932,406 
Accrued expenses:
Accrued payroll-related liabilities255,899 208,718 
Refund liability108,292 102,148 
Other accrued expenses332,046 334,890 
Other current liabilities123,105 130,021 
Current portion of operating lease liabilities203,126 221,811 
Current portion of long-term obligations36,815 58,497 
Total current liabilities2,322,259 1,988,491 
Long-term operating lease liabilities, excluding current portion1,188,984 1,197,963 
Long-term obligations, excluding current portion2,348,448 2,812,641 
Deferred income taxes280,850 291,421 
Other noncurrent liabilities378,385 374,640 
Commitments and contingencies
Redeemable noncontrolling interest24,077 24,077 
Stockholders' equity:
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 321,553,252 shares issued and 292,243,742 shares outstanding at September 30, 2021; 320,867,602 shares issued and 303,553,000 shares outstanding at December 31, 20203,215 3,208 
Additional paid-in capital1,465,346 1,444,584 
Retained earnings5,630,632 4,776,040 
Accumulated other comprehensive loss(148,575)(99,009)
Treasury stock, at cost; 29,309,510 shares at September 30, 2021 and 17,314,602 shares at December 31, 2020(1,048,809)(469,105)
Total Company stockholders' equity5,901,809 5,655,718 
Noncontrolling interest16,048 15,582 
Total stockholders' equity5,917,857 5,671,300 
Total liabilities and stockholders' equity$12,460,860 $12,360,533 
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
4




LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Cash Flows
(In thousands)
Nine Months Ended
September 30,
 20212020
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income$855,346 $458,680 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization212,690 220,636 
Stock-based compensation expense24,989 22,851 
Loss on debt extinguishment23,564 12,751 
Other(45,836)(10,320)
Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:
Receivables, net(133,767)(28,622)
Inventories(52,854)535,348 
Prepaid income taxes/income taxes payable(28,680)(22,510)
Accounts payable378,170 (105,719)
Other operating assets and liabilities128,406 51,546 
Net cash provided by operating activities1,362,028 1,134,641 
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment(132,705)(109,949)
Proceeds from disposals of property, plant and equipment16,177 12,937 
Acquisitions, net of cash acquired(66,771)(7,107)
Other investing activities, net(17,543)(2,314)
Net cash used in investing activities(200,842)(106,433)
CASH FLOWS FROM FINANCING ACTIVITIES:
Early-redemption premium(16,014)(9,498)
Repayment of Euro Notes (2026)(883,275) 
Repayment of U.S. Notes (2023) (600,000)
Borrowings under revolving credit facilities4,097,517 599,485 
Repayments under revolving credit facilities(3,242,394)(949,381)
Repayments under term loans(323,750)(13,125)
Borrowings under receivables securitization facility 111,300 
Repayments under receivables securitization facility (111,300)
Repayments of other debt, net(18,109)(74,822)
Settlement of derivative instruments, net(88,743) 
Purchase of treasury stock(574,585)(88,006)
Other financing activities, net(16,458)(15,436)
Net cash used in financing activities(1,065,811)(1,150,783)
Effect of exchange rate changes on cash, cash equivalents and restricted cash(4,826)9,100 
Net increase (decrease) in cash, cash equivalents and restricted cash90,549 (113,475)
Cash and cash equivalents of continuing operations, beginning of period (1)
312,154 528,387 
Add: Cash and cash equivalents of discontinued operations, beginning of period 6,470 
Cash and cash equivalents of continuing and discontinued operations, beginning of period312,154 534,857 
Cash and cash equivalents, end of period$402,703 $421,382 
(1) The balance as of January 1, 2020 included restricted cash of $5 million.
The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
5



Nine Months Ended
September 30,
20212020
Supplemental disclosure of cash paid for:
Income taxes, net of refunds$337,149 $210,952 
Interest52,889 97,858 
Supplemental disclosure of noncash investing and financing activities:
Leased assets obtained in exchange for finance lease liabilities$6,240 $14,716 
Leased assets obtained in exchange for operating lease liabilities177,948 138,774 
Noncash property, plant and equipment and software intangible additions in accounts payable and other accrued expenses11,241 8,339 
Notes payable and other financing obligations, including notes issued and debt assumed in connection with business acquisitions and disposals4,214 4,593 
Notes receivable and contingent consideration receivable acquired in connection with disposal of businesses
 8,549 
Contingent consideration liabilities2,135 3,045 


The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
6




LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Stockholders' Equity
(In thousands)
LKQ Stockholders
 Common StockTreasury StockAdditional Paid-In CapitalRetained EarningsAccumulated
Other
Comprehensive Loss
Noncontrolling InterestTotal Stockholders' Equity
 SharesAmountSharesAmount
BALANCE, July 1, 2021321,260 $3,212 (24,972)$(829,768)$1,458,993 $5,346,577 $(101,090)$16,085 $5,894,009 
Net income— — — — — 284,055 — (49)284,006 
Other comprehensive loss— — — — — — (47,485)— (47,485)
Purchase of treasury stock
— — (4,338)(219,041)— — — — (219,041)
Vesting of restricted stock units, net of shares withheld for employee tax293 3 — — (1,843)— — — (1,840)
Stock-based compensation expense— — — — 8,196 — — — 8,196 
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder— — — — — — — (99)(99)
Disposition of subsidiary with noncontrolling interests— — — — — — — (145)(145)
Foreign currency translation adjustment on noncontrolling interest— — — — — — — 256 256 
BALANCE, September 30, 2021321,553 $3,215 (29,310)$(1,048,809)$1,465,346 $5,630,632 $(148,575)$16,048 $5,917,857 

LKQ Stockholders
 Common StockTreasury StockAdditional Paid-In CapitalRetained EarningsAccumulated
Other
Comprehensive (Loss) Income
Noncontrolling InterestTotal Stockholders' Equity
 SharesAmountSharesAmount
BALANCE, July 1, 2020320,530 $3,205 (16,496)$(439,819)$1,433,338 $4,401,545 $(279,763)$29,435 $5,147,941 
Net income — — — — — 193,483 — 448 193,931 
Other comprehensive income
— — — — — — 70,041 — 70,041 
Vesting of restricted stock units, net of shares withheld for employee tax
300 3 — — (933)— — — (930)
Stock-based compensation expense
— — — — 7,088 — — — 7,088 
Dividends declared to noncontrolling interest shareholder— — — — — — — (2,485)(2,485)
BALANCE, September 30, 2020320,830 $3,208 (16,496)$(439,819)$1,439,493 $4,595,028 $(209,722)$27,398 $5,415,586 















The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
7





LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Stockholders' Equity
(In thousands)
LKQ Stockholders
 Common StockTreasury StockAdditional Paid-In CapitalRetained EarningsAccumulated
Other
Comprehensive Loss
Noncontrolling InterestTotal Stockholders' Equity
 SharesAmountSharesAmount
BALANCE, January 1, 2021320,868 $3,208 (17,315)$(469,105)$1,444,584 $4,776,040 $(99,009)$15,582 $5,671,300 
Net income— — — — — 854,592 — 754 855,346 
Other comprehensive loss— — — — — — (49,566)— (49,566)
Purchase of treasury stock
— — (11,995)(579,704)— — — — (579,704)
Vesting of restricted stock units, net of shares withheld for employee tax685 7 — — (4,227)— — — (4,220)
Stock-based compensation expense— — — — 24,989 — — — 24,989 
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder— — — — — — — (241)(241)
Disposition of subsidiary with noncontrolling interests— — — — — — — (145)(145)
Foreign currency translation adjustment on noncontrolling interest— — — — — — — 98 98 
BALANCE, September 30, 2021321,553 $3,215 (29,310)$(1,048,809)$1,465,346 $5,630,632 $(148,575)$16,048 $5,917,857 

LKQ Stockholders
 Common StockTreasury StockAdditional Paid-In CapitalRetained EarningsAccumulated
Other
Comprehensive Loss
Noncontrolling InterestTotal Stockholders' Equity
 SharesAmountSharesAmount
BALANCE, January 1, 2020
319,927 $3,199 (13,196)$(351,813)$1,418,239 $4,140,136 $(200,885)$39,704 $5,048,580 
Net income
— — — — — 457,411 — 1,269 458,680 
Other comprehensive loss
— — — — — — (8,837)— (8,837)
Purchase of treasury stock
— — (3,300)(88,006)— — — — (88,006)
Vesting of restricted stock units, net of shares withheld for employee tax
791 8 — — (3,063)— — — (3,055)
Stock-based compensation expense
— — — — 22,851 — — — 22,851 
Exercise of stock options
112 1 — — 1,466 — — — 1,467 
Capital contributions from, net of dividends declared to, noncontrolling interest shareholder
— — — — — — — (2,171)(2,171)
Adoption of ASU 2016-13 — — — — — (2,519)— — (2,519)
Disposition of subsidiary with noncontrolling interests(1)
— — — — — — — (11,404)(11,404)
BALANCE, September 30, 2020320,830 $3,208 (16,496)$(439,819)$1,439,493 $4,595,028 $(209,722)$27,398 $5,415,586 
(1) The amount disposed of during 2020 relates to discontinued operations. See Note 2, "Discontinued Operations," for further details.


The accompanying notes are an integral part of the unaudited condensed consolidated financial statements.
8



LKQ CORPORATION AND SUBSIDIARIES
Notes to Unaudited Condensed Consolidated Financial Statements

Note 1. Interim Financial Statements
The accompanying unaudited condensed consolidated financial statements represent the consolidation of LKQ Corporation, a Delaware corporation, and its subsidiaries. LKQ 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 have prepared the accompanying unaudited condensed consolidated financial statements pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC") applicable to interim financial statements. Accordingly, certain information related to our significant accounting policies and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") have been condensed or omitted. These unaudited condensed consolidated financial statements reflect, in the opinion of management, all material adjustments (which include only normally recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented.
Results for interim periods are not necessarily indicative of the results that can be expected for any subsequent interim period or for a full year. These interim financial statements should be read in conjunction with our audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2020 filed with the SEC on February 26, 2021 ("2020 Form 10-K").
The coronavirus disease 2019 ("COVID-19") pandemic and the resulting governmental actions taken to control the virus have impacted, and are expected to continue to impact, our business in 2020 and 2021. The effects include, but are not limited to, a reduction in demand for our products and services relative to 2019, liquidity challenges for certain of our customers and suppliers, and organizational changes, such as personnel reductions and route consolidation undertaken mostly in 2020, driven by cost actions to mitigate the revenue decline. We have considered COVID-19 impacts in the preparation of our financial statements and footnotes. Specific disclosures are presented in the following footnotes as applicable.
The continuing impact of COVID-19 on our business, results of operations, financial condition and cash flows is dependent on future developments, including the severity and duration of the pandemic and the related impact on the global economy, which are uncertain and cannot be predicted at this time, but may be material.

Note 2. Discontinued Operations
On May 30, 2018, we acquired Stahlgruber GmbH ("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 we 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 loss from discontinued operations in the Unaudited Condensed 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.

Note 3. Financial Statement Information
Allowance for Credit Losses
Receivables, net are reported net of an allowance for credit losses. Management evaluates the aging of customer receivable balances, the financial condition of our customers, historical trends, and macroeconomic factors to estimate the
9


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 $63 million and $70 million as of September 30, 2021 and December 31, 2020, respectively. Bad debt expense totaled $3 million and $23 million for the nine months ended September 30, 2021 and 2020, respectively.
Inventories
Inventories consist of the following (in thousands):
September 30,December 31,
20212020
Aftermarket and refurbished products$2,004,516 $2,025,002 
Salvage and remanufactured products388,769 368,815 
Manufactured products30,568 20,795 
Total inventories $2,423,853 $2,414,612 
Aftermarket and refurbished products and salvage and remanufactured products are primarily composed of finished goods. As of September 30, 2021, manufactured products inventory was composed of $24 million of raw materials, $5 million of work in process, and $1 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.
Intangible Assets
Goodwill and indefinite-lived intangible assets are tested for impairment at least annually. We performed our annual impairment test during the fourth quarter of 2020, and we determined no impairment existed as all of our reporting units had a fair value estimate which exceeded the carrying value by at least 30%. 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. Goodwill impairment testing may also be performed on an interim basis when events or circumstances arise that may lead to impairment. We did not identify a triggering event in 2021 that necessitated an interim test of goodwill impairment or indefinite-lived intangible assets impairment.
Investments in Unconsolidated Subsidiaries
Our investment in unconsolidated subsidiaries was $178 million and $155 million as of September 30, 2021 and December 31, 2020, respectively.
Europe Segment
Our investment in unconsolidated subsidiaries in Europe was $155 million and $137 million as of September 30, 2021 and December 31, 2020, respectively. We recorded equity in earnings of $4 million and $13 million during the three and nine months ended September 30, 2021, respectively, and equity in earnings of $4 million and $5 million during the three and nine months ended September 30, 2020, respectively, mainly related to our investment in Mekonomen AB ("Mekonomen").    
We are accounting for our 26.6% equity interest in Mekonomen using the equity method of accounting, as our investment gives us the ability to exercise significant influence, but not control, over the investee. As of September 30, 2021, our share of the book value of Mekonomen's net assets exceeded the book value of our investment in Mekonomen by $8 million; this difference is primarily related to Mekonomen's Accumulated Other Comprehensive Income balance as of our acquisition date in 2016. We are recording our equity in the net earnings of Mekonomen on a one quarter lag.
Mekonomen announced in March 2020 and February 2021, respectively, that the Mekonomen Board of Directors proposed no dividend payment in 2020 or 2021. The Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at September 30, 2021 was $271 million (using the Mekonomen share price of SEK 156 as of September 30, 2021) compared to a carrying value of $144 million.
North America Segment
Our investment in unconsolidated subsidiaries in the North America segment was $24 million and $19 million as of September 30, 2021 and December 31, 2020, respectively. We recorded equity in earnings of $3 million and $4 million during the three and nine months ended September 30, 2021, respectively, and equity in earnings of an immaterial amount and equity in losses of $3 million during the three and nine months ended September 30, 2020, respectively, related to our North America equity method investments.
10