Key TakeawaysThe S&P 500 jumped 1.2% on Tuesday, April 23, 2024, as tech stocks helped drive a second straight day of gains ahead of key earnings reports this week.Globe Life shares moved higher after the insurer reported a year-over-year gain in net operating income.Auto parts provider LKQ Corp. posted lower-than-expected first-quarter sales and profits, citing soft demand, and its shares tumbled. Major U.S. equities indexes moved higher for the second consecutive day, extending their recovery from last w ...

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 March 31, 2024 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: 001-42002 ____________________________ LKQ CORPORATION (Exact name of re ...

LKQ Corporation (LKQ) delivered adjusted earnings of 82 cents per share for first-quarter 2024, which missed the Zacks Consensus Estimate of 94 cents and decreased from $1.04 reported in the year-ago period.The aftermarket auto parts distributor registered quarterly revenues of $3.7 billion, missing the Zacks Consensus Estimate of $3.79 billion. The top line, however, grew from the year-ago level of $3.35 billion. Parts and services organic revenues decreased 0.3% year over year.Segment HighlightsIn the rep ...

LKQ (LKQ) came out with quarterly earnings of $0.82 per share, missing the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $1.04 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -12.77%. A quarter ago, it was expected that this vehicle components company would post earnings of $0.75 per share when it actually produced earnings of $0.84, delivering a surprise of 12%.Over the last four quarters, the comp ...

Chicago, IL (April 23, 2024) -- LKQ Corporation (Nasdaq: LKQ) today reported first quarter 2024 financial results. "Our first quarter results were below our expectations as our Wholesale – North America segment was confronted with a reduction in repairable claims and the resulting pressure on demand, which we believe is primarily attributable to record warm weather across the United States. On the upside, we experienced positive organic growth in our Europe segment and generated robust free cash flow. Our s ...

Revenue of $3.7 billion (an 11% increase compared to the same period in 2023)Diluted EPS2 of $0.59; adjusted diluted EPS1,2 of $0.82Operating cash flow of $253 million; free cash flow1 of $187 millionDividend of $0.30 per share approved to be paid in the second quarter of 2024Completed an offering of €750 million of unsecured 4.125% senior notesUni-Select synergies accelerated and increased from $55 million to $65 millionRepurchased $30 million of LKQ shares CHICAGO, April 23, 2024 (GLOBE NEWSWIRE) -- LKQ C ...

Wall Street expects a year-over-year decline in earnings on higher revenues when LKQ (LKQ) reports results for the quarter ended March 2024. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates. The earnings report, which is expected to be released on April 23, 2024, might help the stock move higher if these key numbers are better than expectations. ...

Part I [Business](index=3&type=section&id=Item%201.%20Business) LKQ Corporation is a global distributor of alternative vehicle parts and specialty products, operating through four segments with a strategy focused on growth, technology adaptation, and asset optimization [Overview](index=3&type=section&id=Item%201.%20BusinessOVERVIEW) LKQ Corporation is an S&P **500** global distributor of alternative vehicle parts and accessories, operating through **four** segments to serve the vehicle repair and maintenance industry - LKQ is a global distributor of vehicle products, offering alternative parts (aftermarket, recycled, refurbished, remanufactured) as a substitute for new OEM parts[15](index=15&type=chunk)[16](index=16&type=chunk) - The company is organized into **four** reportable operating segments: Wholesale - North America, Europe, Specialty, and Self Service[17](index=17&type=chunk)[18](index=18&type=chunk) [History](index=4&type=section&id=Item%201.%20BusinessHISTORY) Formed in **1998**, LKQ expanded significantly through approximately **300** acquisitions, including Uni-Select Inc. in **2023**, enhancing its North American paint distribution and Canadian mechanical parts market presence - The company was formed in **1998** and has grown through approximately **300** acquisitions[19](index=19&type=chunk) - The **2023** acquisition of Uni-Select Inc. complements LKQ's North American paint distribution and provides a scaled entry into the Canadian mechanical parts market[22](index=22&type=chunk) [Strategy](index=4&type=section&id=Item%201.%20BusinessSTRATEGY) LKQ's strategy focuses on **four** pillars: growing offerings, geographic expansion, technology adaptation, and asset rationalization, with the '**1** LKQ Europe' plan as a key integration initiative leveraging AI and prioritizing free cash flow and profitable growth - The company's strategy focuses on **four** pillars: growing offerings, geographic expansion, adapting to technology, and rationalizing assets[25](index=25&type=chunk) - The "**1** LKQ Europe" plan is a multi-year business transformation to create a single, integrated Pan-European organization by leveraging scale in procurement, logistics, and product strategy[24](index=24&type=chunk) - LKQ utilizes artificial intelligence (AI) in its salvage business to make more accurate purchasing decisions and control inventory[26](index=26&type=chunk) [Wholesale - North America Segment](index=6&type=section&id=Item%201.%20BusinessWHOLESALE%20-%20NORTH%20AMERICA%20SEGMENT) The Wholesale - North America segment is a leading provider of alternative collision and mechanical replacement products, expanded by the Uni-Select acquisition, sourcing from diverse vendors and utilizing AI for salvage procurement to serve professional repair shops - The segment is a leading provider of alternative vehicle collision and mechanical replacement products in the U.S. and Canada[28](index=28&type=chunk) - The acquisition of Uni-Select expanded the segment's paint business and provided entry into the Canadian mechanical parts market[30](index=30&type=chunk) - Approximately **51%** of aftermarket purchases in **2023** were from the top **seven** vendors. The largest vendor accounted for about **12%** of the segment's annual inventory purchases[32](index=32&type=chunk) - The segment uses proprietary software with embedded AI to assist in the procurement of salvage vehicles from auctions[34](index=34&type=chunk)[35](index=35&type=chunk) [Europe Segment](index=8&type=section&id=Item%201.%20BusinessEUROPE%20SEGMENT) The Europe segment distributes aftermarket mechanical parts across over **20** countries, focusing on the '**1** LKQ Europe' integration plan to standardize operations, optimize purchasing, and reduce inventory complexity, serving customers through multi-step models - The "**1** LKQ Europe" plan aims to integrate European operations to optimize purchasing, logistics, and systems, with a projected completion by the end of **2027**[48](index=48&type=chunk)[55](index=55&type=chunk) - The segment's inventory is primarily composed of mechanical aftermarket parts, with over **900,000** unique part numbers. A key goal is to reduce this complexity[49](index=49&type=chunk) - In **2023**, the top supplier represented **9%** of the segment's aftermarket inventory purchases, and no other supplier comprised more than **5%**[50](index=50&type=chunk) [Specialty Segment](index=9&type=section&id=Item%201.%20BusinessSPECIALTY%20SEGMENT) The Specialty segment is a leading North American distributor of aftermarket equipment for RVs, trucks, marine, and performance vehicles, sourcing from a fragmented supplier base and primarily relying on online sales through a hub-and-spoke distribution model - The segment distributes specialty aftermarket products for RV, truck, towing, marine, and performance vehicles in North America[56](index=56&type=chunk) - The supplier base is highly fragmented. In **2023**, the top **three** suppliers accounted for approximately **19%** of purchases, with the largest supplier providing about **9%**[57](index=57&type=chunk)[58](index=58&type=chunk) - Online sales represent the majority of the segment's sales, primarily through platforms like ekeystone.com[61](index=61&type=chunk) [Self Service Segment](index=10&type=section&id=Item%201.%20BusinessSELF%20SERVICE%20SEGMENT) The Self Service segment operates 'LKQ Pick Your Part' retail yards where customers self-remove parts from older salvage vehicles, with remaining hulks sold as scrap metal, serving DIY mechanics and small shops, and utilizing a mobile app for customer engagement - The segment operates retail self-service yards where customers can pull parts directly from salvage vehicles[65](index=65&type=chunk) - Inventory consists of older, lower-priced salvage vehicles sourced from towing companies, auctions, and the general public[66](index=66&type=chunk) - The segment utilizes a mobile app that sends push notifications to customers about vehicle inventory, allowing them to search for specific parts[69](index=69&type=chunk) [Human Capital](index=12&type=section&id=Item%201.%20BusinessHUMAN%20CAPITAL) As of December **31**, **2023**, LKQ employed approximately **49,000** people globally, with a human capital strategy focused on attracting, retaining, and developing talent through competitive compensation, comprehensive benefits, and a strong ethical culture - As of December **31**, **2023**, the company employed approximately **49,000** people globally (**20,000** in North America, **29,000** outside)[73](index=73&type=chunk) - Many employees in Europe are represented by unions and/or works councils, and approximately **1,000** employees in North America are represented by unions[73](index=73&type=chunk) - The company provides competitive compensation and benefits, including medical coverage, paid parental leave, retirement plan contributions, and a scholarship program for employees' children[77](index=77&type=chunk)[78](index=78&type=chunk) [Sustainability Matters](index=14&type=section&id=Item%201.%20BusinessSUSTAINABILITY%20MATTERS) LKQ's sustainability efforts encompass environmental stewardship through vehicle recycling, social responsibility via an inclusive work environment and community support, and enhanced corporate governance with a refreshed, diverse Board and a global Code of Ethics - Environmental efforts focus on vehicle recycling and reuse, contributing to a circular economy and reducing raw material use[86](index=86&type=chunk)[87](index=87&type=chunk) - Social initiatives include fostering an inclusive work environment and community support via the LKQ Community Foundation[88](index=88&type=chunk)[89](index=89&type=chunk) - Governance enhancements include significant board refreshment (over half added since August **2018**), with **44%** of the current board from underrepresented groups, and the adoption of proxy access[90](index=90&type=chunk)[91](index=91&type=chunk) [Risk Factors](index=14&type=page&id=Item%201A.%20Risk%20Factors) LKQ faces diverse risks including economic downturns, intense competition, reliance on insurance companies, fluctuating accident rates, commodity price volatility, supply chain disruptions, substantial debt, and regulatory challenges from intellectual property claims, environmental laws, and data privacy regulations - Business is sensitive to economic conditions, competition from OEMs who may restrict the use of alternative parts, and reliance on insurance companies to promote alternative parts usage[95](index=95&type=chunk)[103](index=103&type=chunk)[107](index=107&type=chunk) - OEMs are increasingly using intellectual property claims (design patents) and vehicle telematics to limit the use of aftermarket and recycled parts[104](index=104&type=chunk)[105](index=105&type=chunk)[110](index=110&type=chunk) - The business is dependent on vehicle accident rates, which could decline due to advanced accident avoidance systems, and is exposed to fluctuations in scrap metal and precious metal commodity prices[115](index=115&type=chunk)[116](index=116&type=chunk)[119](index=119&type=chunk) - A substantial amount of debt (**$4.3 billion** as of Dec **31**, **2023**) and related service obligations could limit operational flexibility and ability to obtain future financing[137](index=137&type=chunk)[139](index=139&type=chunk) - The company faces risks from laws that may prohibit or restrict the sale of aftermarket or recycled products, as well as complex environmental regulations[153](index=153&type=chunk)[158](index=158&type=chunk) - Cybersecurity and data privacy are significant risks, with evolving regulations like GDPR and new SEC rules imposing stringent requirements and potential liabilities[176](index=176&type=chunk)[177](index=177&type=chunk) [Unresolved Staff Comments](index=28&type=page&id=Item%201B.%20Unresolved%20Staff%20Comments) The company reports that it has no unresolved staff comments - None[189](index=189&type=chunk) [Cybersecurity](index=29&type=page&id=Item%201C.%20Cybersecurity) LKQ's cybersecurity risk management, overseen by the Board and CISO, employs a cross-functional strategy including technical safeguards, incident response, third-party risk management, and employee training, with no material impact reported from threats - The Board of Directors, supported by the Audit Committee and a management-level Risk Management Committee, oversees the cybersecurity risk management program[191](index=191&type=chunk)[198](index=198&type=chunk) - The company's strategy includes technical safeguards, incident response plans, third-party risk management, and regular mandatory employee training[193](index=193&type=chunk)[194](index=194&type=chunk)[195](index=195&type=chunk)[196](index=196&type=chunk) - The Chief Information Security Officer (CISO) has over **26** years of experience and holds multiple professional certifications (CISSP, CISM, GCIH)[200](index=200&type=chunk) - The company states that cybersecurity threats have not materially affected its business strategy, results of operations, or financial condition[201](index=201&type=chunk) [Properties](index=30&type=section&id=Item%202.%20Properties) As of December **31**, **2023**, LKQ operated approximately **1,650** mostly leased facilities globally, including key headquarters in Chicago, Antioch, and Zug, which are deemed sufficient for current needs - As of December **31**, **2023**, the company operated approximately **1,650** facilities, most of which are leased[202](index=202&type=chunk) - Facility distribution includes approximately **550** in the U.S. and **1,100** in over **25** other countries[202](index=202&type=chunk) - Key headquarters are located in Chicago (Global), Antioch, TN (North America), and Zug, Switzerland (Europe)[203](index=203&type=chunk)[204](index=204&type=chunk) [Legal Proceedings](index=31&type=section&id=Item%203.%20Legal%20Proceedings) In November **2023**, a Uni-Select subsidiary pleaded guilty to environmental violations and paid a C$**600,000** fine, while other ongoing legal claims are not expected to materially affect LKQ's financial position - A subsidiary, Plastique Royal Inc., pleaded guilty to environmental violations and paid a C$**600,000** fine in November **2023**[207](index=207&type=chunk) - Management believes that other currently outstanding claims and lawsuits will not have a material adverse effect on the company's financial position, results of operations, or cash flows[208](index=208&type=chunk) [Mine Safety Disclosures](index=31&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not applicable[209](index=209&type=chunk) Part II [Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=32&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) LKQ's common stock trades on Nasdaq, paid increased quarterly dividends in **2023**, and maintains an active stock repurchase program with **$1.1 billion** remaining authorized, while its stock performance outperformed peers but lagged the S&P **500** over **five** years | Dividend Amount | Declaration Date | Record Date | Payment Date | | :--- | :--- | :--- | :--- | | $**0.275** | February **21**, **2023** | March **16**, **2023** | March **30**, **2023** | | $**0.275** | April **25**, **2023** | May **18**, **2023** | June **1**, **2023** | | $**0.275** | July **25**, **2023** | August **17**, **2023** | August **31**, **2023** | | $**0.30** | October **24**, **2023** | November **16**, **2023** | November **30**, **2023** | | Period | Total Number of Shares Purchased (millions) | Average Price Paid per Share | Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (millions) | | :--- | :--- | :--- | :--- | | Oct **1** - Oct **31**, **2023** | **0.2** | $**43.73** | $**1,099** | | Nov **1** - Nov **30**, **2023** | **0.1** | $**43.83** | $**1,096** | | Dec **1** - Dec **31**, **2023** | **0.4** | $**45.65** | $**1,076** | | **Total Q4 2023** | **0.7** | | **$1,076** | - The Board has authorized a stock repurchase program of up to **$3.5 billion**, with a scheduled duration through October **25**, **2025**[218](index=218&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) In **2023**, LKQ's revenue grew **8.4%** to **$13.9 billion**, driven by acquisitions and organic growth, despite a decline in operating income to **$1.4 billion** and net income to **$936 million** due to margin pressure and restructuring costs, while generating **$1.0 billion** in free cash flow and maintaining **$1.3 billion** in liquidity after the Uni-Select acquisition [Results of Operations—Consolidated](index=39&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20OperationsResults%20of%20Operations%E2%80%94Consolidated) For **2023**, total revenue increased **8.4%** to **$13.87 billion**, driven by parts and services growth, though partially offset by lower commodity prices and a decline in gross margin and operating income due to higher costs and Uni-Select acquisition expenses | | **2023** | **2022** | |:---|:---:|:---:| | **Revenue** | $**13,866M** | $**12,794M** | | **Gross margin** | **40.2%** | **40.8%** | | **Operating income** | $**1,357M** | $**1,581M** | | **Net income attributable to LKQ stockholders** | $**936M** | $**1,149M** | | **Diluted EPS attributable to LKQ stockholders** | $**3.49** | $**4.13** | | Revenue Category | **2023** (in millions) | **2022** (in millions) | Total Change | Organic Change | Acquisition/Divestiture Change | Foreign Exchange Change | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Parts & services | $**13,174** | $**11,933** | **10.4%** | **4.7%** | **4.8%** | **0.9%** | | Other revenue | $**692** | $**861** | (**19.6**)% | (**16.0**)% | (**3.4**)% | (**0.1**)% | | **Total revenue** | **$13,866** | **$12,794** | **8.4%** | **3.3%** | **4.2%** | **0.8%** | - Restructuring and transaction related expenses increased to **$65 million** in **2023** from **$20 million** in **2022**, primarily due to costs associated with the Uni-Select acquisition[250](index=250&type=chunk) - Total other expense increased to **$122 million** from **$63 million**, largely due to a **$136 million** increase in interest expense from higher rates and debt related to the Uni-Select acquisition. This was partially offset by a **$49 million** gain on foreign exchange contracts related to the acquisition[254](index=254&type=chunk) [Results of Operations—Segment Reporting](index=42&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20OperationsResults%20of%20Operations%E2%80%94Segment%20Reporting) In **2023**, Wholesale - North America and Europe segments saw revenue growth, while Specialty and Self Service experienced revenue declines and compressed EBITDA margins due to market softness and lower commodity prices, respectively | Segment | **2023** Revenue (M) | **2022** Revenue (M) | **2023** Segment EBITDA (M) | **2023** EBITDA Margin | **2022** EBITDA Margin | | :--- | :--- | :--- | :--- | :--- | :--- | | Wholesale - North America | $**5,281** | $**4,556** | $**975** | **18.5%** | **18.7%** | | Europe | $**6,323** | $**5,735** | $**614** | **9.7%** | **10.2%** | | Specialty | $**1,665** | $**1,788** | $**134** | **8.0%** | **11.1%** | | Self Service | $**597** | $**715** | $**36** | **6.0%** | **11.7%** | [Liquidity and Capital Resources](index=48&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20OperationsLiquidity%20and%20Capital%20Resources) As of December **31**, **2023**, LKQ maintained **$1.28 billion** in liquidity despite total debt increasing to **$4.3 billion** to finance the **$2.1 billion** Uni-Select acquisition, while generating **$1.36 billion** in operating cash flow and remaining compliant with debt covenants | Liquidity Data (in millions) | Dec **31**, **2023** | Dec **31**, **2022** | | :--- | :--- | :--- | | Cash and cash equivalents | $**299** | $**278** | | Total debt | $**4,281** | $**2,662** | | Availability under revolving credit facilities | $**976** | $**645** | | **Total liquidity** | **$1,275** | **$923** | | Cash Flow Data (in millions) | Year Ended Dec **31**, **2023** | Year Ended Dec **31**, **2022** | | :--- | :--- | :--- | | Net cash provided by operating activities | $**1,356** | $**1,250** | | Purchases of property, plant and equipment | ($**358**)| ($**222**)| | **Free cash flow** | **$998** | **$1,028** | - The Uni-Select acquisition was financed with **$1.4 billion** from new senior notes, a CAD **700 million** (**$531 million**) term loan, and borrowings under the revolving credit facility and cash on hand[290](index=290&type=chunk)[419](index=419&type=chunk)[420](index=420&type=chunk) - The company was in compliance with its debt covenants as of December **31**, **2023**, with a maximum total leverage ratio of **2.3** (covenant: **4.00**) and a minimum interest coverage ratio of **7.5** (covenant: **3.00**)[295](index=295&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) LKQ faces market risks from foreign exchange rates, interest rates on variable debt, commodity price volatility for scrap and precious metals, and inflationary pressures on costs, which could impact revenue, expenses, and margins - Foreign currency fluctuations are a key risk, as operations outside the U.S. accounted for **50.8%** of revenue in **2023**. A **10%** change in the U.S. dollar's strength would alter consolidated revenue by **5.1%**[319](index=319&type=chunk) - The company is exposed to interest rate risk on its variable-rate debt. As of December **31**, **2023**, **$1.24 billion** of this debt was unhedged. A **100** basis point change in rates would affect annual interest expense by approximately **$12 million**[325](index=325&type=chunk) - The company is exposed to price fluctuations in scrap metal and precious metals (platinum, palladium, rhodium), which affect both revenue and inventory costs, potentially compressing margins during periods of rapid price changes[326](index=326&type=chunk) - Inflationary pressures on product, labor, and shipping costs are a significant risk. The company attempts to offset these through price increases and productivity initiatives, but may not be able to fully mitigate the impact on margins[327](index=327&type=chunk) [Financial Statements and Supplementary Data](index=56&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) This section presents LKQ's audited consolidated financial statements for **2023** and Deloitte & Touche LLP's unqualified opinion on both financial statements and internal controls, noting critical audit matters related to goodwill impairment and the Uni-Select acquisition [Reports of Independent Registered Public Accounting Firm](index=57&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20DataReports%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte & Touche LLP issued unqualified opinions on LKQ's **2023** financial statements and internal controls, excluding Uni-Select from the latter, while highlighting critical audit matters concerning goodwill impairment and Uni-Select business combination valuation - The independent auditor, Deloitte & Touche LLP, issued an unqualified opinion on the financial statements and the effectiveness of internal control over financial reporting[332](index=332&type=chunk)[346](index=346&type=chunk) - The audit of internal controls excluded Uni-Select Inc., acquired on August **1**, **2023**, which constituted **16%** of total assets and **4%** of revenue for the year[348](index=348&type=chunk) - Critical Audit Matters identified were the Goodwill Impairment Assessment and the valuation of intangible assets related to the Uni-Select Business Combination[336](index=336&type=chunk)[339](index=339&type=chunk) [Consolidated Financial Statements](index=61&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20DataConsolidated%20Financial%20Statements) LKQ's **2023** consolidated financial statements show **$13.87 billion** in revenue and **$936 million** net income, with total assets increasing to **$15.08 billion** and liabilities to **$8.90 billion** primarily due to the Uni-Select acquisition, while generating **$1.36 billion** in operating cash flow | (In millions) | **2023** | **2022** | | :--- | :--- | :--- | | **Revenue** | $**13,866** | $**12,794** | | **Operating income** | $**1,357** | $**1,581** | | **Net income attributable to LKQ stockholders** | $**936** | $**1,149** | | **Diluted EPS attributable to LKQ stockholders** | $**3.49** | $**4.13** | | (In millions) | Dec **31**, **2023** | Dec **31**, **2022** | | :--- | :--- | :--- | | **Total current assets** | $**4,868** | $**4,258** | | **Total assets** | $**15,079** | $**12,038** | | **Total current liabilities** | $**3,318** | $**2,271** | | **Total liabilities** | $**8,898** | $**6,571** | | **Total stockholders' equity** | $**6,181** | $**5,467** | | (In millions) | **2023** | **2022** | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $**1,356** | $**1,250** | | **Net cash (used in) provided by investing activities** | ($**2,442**)| $**172** | | **Net cash provided by (used in) financing activities** | $**1,102** | ($**1,394**)| [Notes to Consolidated Financial Statements](index=66&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20DataNotes%20to%20Consolidated%20Financial%20Statements) The notes detail the **$2.1 billion** Uni-Select acquisition, its impact on goodwill and debt structure, segment performance showing mixed revenue trends, the **2023** effective tax rate of **24.8%**, and information on restructuring, leases, and pension plans [Controls and Procedures](index=103&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded that disclosure controls and internal control over financial reporting were effective as of December **31**, **2023**, excluding the recently acquired Uni-Select from the internal control assessment, with no material changes during the quarter - Management concluded that disclosure controls and procedures were effective as of December **31**, **2023**[586](index=586&type=chunk) - The assessment of internal control over financial reporting excluded Uni-Select, which was acquired in **2023** and constituted **16%** of total assets and **4%** of revenue[588](index=588&type=chunk) - Based on its assessment, management determined that the company maintained effective internal control over financial reporting as of December **31**, **2023**[592](index=592&type=chunk) [Other Information](index=104&type=section&id=Item%209B.%20Other%20Information) During the fiscal year ended December **31**, **2023**, none of the company's directors or executive officers adopted, modified, or terminated any Rule **10b5-1** trading plans or any non-Rule **10b5-1** trading arrangements - No directors or executive officers adopted, modified, or terminated any Rule **10b5-1** trading plans or other trading arrangements during the fiscal year[594](index=594&type=chunk) Part III [Directors, Executive Officers and Corporate Governance](index=105&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) This section provides information on directors and executive officers, including the upcoming CEO succession plan where Dominick Zarcone will retire and be succeeded by Justin L. Jude, with further details incorporated from the Proxy Statement and the company's Code of Ethics available online - Information regarding directors is incorporated by reference from the Proxy Statement for the May **7**, **2024** Annual Meeting[596](index=596&type=chunk) - A leadership succession plan was approved in November **2023**: Dominick Zarcone will retire as President and CEO on June **30**, **2024**, and will be succeeded by Justin L. Jude[598](index=598&type=chunk)[605](index=605&type=chunk) - The company's Code of Ethics is applicable to its principal executive, financial, and accounting officers and is available on its website[608](index=608&type=chunk) [Executive Compensation](index=107&type=section&id=Item%2011.%20Executive%20Compensation) All information related to executive compensation is incorporated by reference from the company's Proxy Statement - All information related to executive compensation is incorporated by reference from the company's Proxy Statement[610](index=610&type=chunk) [Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters](index=107&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Stockholder%20Matters) Information on security ownership is incorporated from the Proxy Statement, with **1.6 million** securities issuable from outstanding options and **7.5 million** available for future issuance under approved equity compensation plans as of December **31**, **2023** | Plan Category | Securities to be issued upon exercise (a) | Securities remaining available for future issuance (c) | | :--- | :--- | :--- | | Equity compensation plans approved by stockholders | **1.6 million** | **7.5 million** | | Equity compensation plans not approved by stockholders | **0** | **0** | | **Total** | **1.6 million** | **7.5 million** | [Certain Relationships and Related Transactions, and Director Independence](index=107&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) All information related to certain relationships, related transactions, and director independence is incorporated by reference from the company's Proxy Statement - All information related to certain relationships, related transactions, and director independence is incorporated by reference from the company's Proxy Statement[612](index=612&type=chunk) [Principal Accountant Fees and Services](index=107&type=section&id=Item%2014.%20Principal%20Accountant%20Fees%20and%20Services) All information related to principal accountant fees and services is incorporated by reference from the company's Proxy Statement - All information related to principal accountant fees and services is incorporated by reference from the company's Proxy Statement[613](index=613&type=chunk) Part IV [Exhibits and Financial Statement Schedules](index=108&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists financial statements included in Item **8**, notes the omission of financial statement schedules, and provides a comprehensive list of exhibits filed with the report, including governance documents, debt agreements, and management compensatory plans - The financial statements are referenced in Part II, Item **8**[615](index=615&type=chunk) - All financial statement schedules have been omitted because they are not required, not applicable, or the information is included elsewhere[616](index=616&type=chunk) - A detailed list of exhibits filed with the Form **10-K** is provided, including management contracts and compensatory plans[617](index=617&type=chunk)[618](index=618&type=chunk) [Form 10-K Summary](index=113&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable to the company's filing - Not applicable[621](index=621&type=chunk)

LKQ Corporation (NASDAQ:LKQ) Q4 2023 Earnings Conference Call February 22, 2024 8:00 AM ET Company Participants Joe Boutross - VP, IR Nick Zarcone - President & CEO Rick Galloway - SVP & CFO Justin Jude - EVP & COO Conference Call Participants Daniel Imbro - Stephens Michael Hoffman - Stifel Craig Kennison - Baird Bret Jordan - Jefferies Operator Hello, and welcome to today's LKQ Corporation Fourth Quarter and Full Year 2023 Earnings Conference Call. My name is Jordan and I will be coordinating your call to ...

Change % of Revenue 10.0% 0.9% (1.3)%(0.5)% (0.4)% (0.4)% Q4 2022 Gross Margin Personnel Expenses Labor Strikes in Germany Nonrecurring Compensation Charge Other Expenses Q4 2023 6.0% 8.0% 10.0% 12.0% 8.3% Change % of Revenue | --- | --- | --- | --- | --- | --- | |--------------------|--------|--------|---------|-------|-------| | ($ in millions) | 2023 | 2022 | F/(U) | 2023 | 2022 | | Total Revenue (1) | $1,546 | $1,390 | 11.2% | | | | Gross Margin | $597 | $526 | 13.6% | 38.7% | 37.8% | | Operating Expens ...