Question-and-Answer Session
Operator
Thank you. We will now be conducting a question-and-answer session. (Operator Instructions.) Our first question does come from Tony Cristello with BB&T Capital Markets.
Tony Cristello - BB&T Capital Markets
One of the things, Joe, you referred to multiple times in the commentary was the level of interaction with the insurance companies wanting to utilize more aftermarket parts. Is this incremental from what we've seen over the last multiple years? Are you seeing a period now where they are wanting to accelerate that utilization rate given the macro factors that are underway?
Joe Holsten
I think I would look at this as incremental and a stronger momentum maybe than what we've seen over the last few years. As we've discussed on some of the prior call, the insurance industry has gone through several years of pretty bleak returns, at least what I read in the public data that's available. I don't know that anyone's really getting increases in their premiums. The battlefield is really in the cost-containment side of the equation.
We believe our business model is ideally suited as it could be to play in that space and to participate and we see an entire industry where the APU is going to be continuing to go up. It's been moving about 100 basis points a year. Our first glimpse of the last data from the two or three large data providers for the industry suggest this year that the move could be a couple of hundred basis points. At the moment, we think there could be acceleration.
Tony Cristello - BB&T Capital Markets
In those discussions, are you seeing any more of a proactive response out of State Farm?
Joe Holsten
No. Do you want me to elaborate on that?
Tony Cristello - BB&T Capital Markets
I figured we haven't talked about that in a while and I didn't know if anything had changed.
Joe Holsten
No. We've really reoriented a lot of our focus more toward the Tier 2 and Tier 3 suppliers. They're nimble, they can make decisions quick. We're really putting more of our (inaudible) in our marketing efforts toward the smaller insurance carriers right now.
Tony Cristello - BB&T Capital Markets
When you look at Greenleaf, it seems like there's certainly an opportunity. Have you or could you disclose what your purchase price was for Greenleaf? When you look at the yards at Greenleaf, can you sort of compare and contrast those yards with what the traditional LKQ yard would look like maybe just a structural standpoint, as well as what it would look like from a profitability or an EBIT standpoint?
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