|
x
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
DELAWARE
|
|
36-4215970
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(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
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500 WEST MADISON STREET,
SUITE 2800, CHICAGO, IL
|
|
60661
|
(Address of principal executive offices)
|
|
(Zip Code)
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Large accelerated filer
|
x
|
Accelerated filer
|
¨
|
Non-accelerated filer
|
¨
(Do not check if a smaller reporting company)
|
Smaller reporting company
|
¨
|
|
Item 1.
|
Financial Statements.
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Balance Sheets
(In thousands, except share and per share data)
|
|||||||
|
June 30,
|
|
December 31,
|
||||
|
2014
|
|
2013
|
||||
Assets
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and equivalents
|
$
|
109,564
|
|
|
$
|
150,488
|
|
Receivables, net
|
624,300
|
|
|
458,094
|
|
||
Inventory
|
1,346,723
|
|
|
1,076,952
|
|
||
Deferred income taxes
|
74,092
|
|
|
63,938
|
|
||
Prepaid expenses and other current assets
|
86,047
|
|
|
50,345
|
|
||
Total Current Assets
|
2,240,726
|
|
|
1,799,817
|
|
||
Property and Equipment, net
|
621,600
|
|
|
546,651
|
|
||
Intangible Assets:
|
|
|
|
||||
Goodwill
|
2,308,943
|
|
|
1,937,444
|
|
||
Other intangibles, net
|
230,429
|
|
|
153,739
|
|
||
Other Assets
|
97,147
|
|
|
81,123
|
|
||
Total Assets
|
$
|
5,498,845
|
|
|
$
|
4,518,774
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
392,659
|
|
|
$
|
349,069
|
|
Accrued expenses:
|
|
|
|
||||
Accrued payroll-related liabilities
|
70,515
|
|
|
58,695
|
|
||
Sales taxes payable
|
50,998
|
|
|
30,701
|
|
||
Other accrued expenses
|
127,119
|
|
|
109,373
|
|
||
Contingent consideration liabilities
|
2,304
|
|
|
52,465
|
|
||
Other current liabilities
|
35,126
|
|
|
36,115
|
|
||
Current portion of long-term obligations
|
71,487
|
|
|
41,535
|
|
||
Total Current Liabilities
|
750,208
|
|
|
677,953
|
|
||
Long-Term Obligations, Excluding Current Portion
|
1,879,837
|
|
|
1,264,246
|
|
||
Deferred Income Taxes
|
160,452
|
|
|
133,822
|
|
||
Other Noncurrent Liabilities
|
105,832
|
|
|
92,008
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Stockholders’ Equity:
|
|
|
|
||||
Common stock, $0.01 par value,1,000,000,000 shares authorized, 302,189,513 and 300,805,276 shares issued and outstanding at June 30, 2014 and December 31, 2013, respectively
|
3,022
|
|
|
3,008
|
|
||
Additional paid-in capital
|
1,031,807
|
|
|
1,006,084
|
|
||
Retained earnings
|
1,531,177
|
|
|
1,321,642
|
|
||
Accumulated other comprehensive income
|
36,510
|
|
|
20,011
|
|
||
Total Stockholders’ Equity
|
2,602,516
|
|
|
2,350,745
|
|
||
Total Liabilities and Stockholders’ Equity
|
$
|
5,498,845
|
|
|
$
|
4,518,774
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
|
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenue
|
$
|
1,709,132
|
|
|
$
|
1,251,748
|
|
|
$
|
3,334,909
|
|
|
$
|
2,447,745
|
|
Cost of goods sold
|
1,038,073
|
|
|
741,875
|
|
|
2,011,966
|
|
|
1,435,923
|
|
||||
Gross margin
|
671,059
|
|
|
509,873
|
|
|
1,322,943
|
|
|
1,011,822
|
|
||||
Facility and warehouse expenses
|
128,506
|
|
|
102,885
|
|
|
254,665
|
|
|
203,131
|
|
||||
Distribution expenses
|
146,544
|
|
|
106,583
|
|
|
283,873
|
|
|
210,440
|
|
||||
Selling, general and administrative expenses
|
186,585
|
|
|
146,012
|
|
|
371,115
|
|
|
283,068
|
|
||||
Restructuring and acquisition related expenses
|
5,901
|
|
|
3,680
|
|
|
9,222
|
|
|
5,185
|
|
||||
Depreciation and amortization
|
29,927
|
|
|
19,335
|
|
|
56,638
|
|
|
37,032
|
|
||||
Operating income
|
173,596
|
|
|
131,378
|
|
|
347,430
|
|
|
272,966
|
|
||||
Other expense (income):
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
15,628
|
|
|
12,492
|
|
|
31,746
|
|
|
21,087
|
|
||||
Loss on debt extinguishment
|
—
|
|
|
2,795
|
|
|
324
|
|
|
2,795
|
|
||||
Change in fair value of contingent consideration liabilities
|
(790
|
)
|
|
230
|
|
|
(2,012
|
)
|
|
1,053
|
|
||||
Other income, net
|
(907
|
)
|
|
(577
|
)
|
|
(1,003
|
)
|
|
(175
|
)
|
||||
Total other expense, net
|
13,931
|
|
|
14,940
|
|
|
29,055
|
|
|
24,760
|
|
||||
Income before provision for income taxes
|
159,665
|
|
|
116,438
|
|
|
318,375
|
|
|
248,206
|
|
||||
Provision for income taxes
|
54,341
|
|
|
40,716
|
|
|
108,362
|
|
|
87,892
|
|
||||
Equity in earnings of unconsolidated subsidiaries
|
(442
|
)
|
|
—
|
|
|
(478
|
)
|
|
—
|
|
||||
Net income
|
$
|
104,882
|
|
|
$
|
75,722
|
|
|
$
|
209,535
|
|
|
$
|
160,314
|
|
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.35
|
|
|
$
|
0.25
|
|
|
$
|
0.69
|
|
|
$
|
0.54
|
|
Diluted
|
$
|
0.34
|
|
|
$
|
0.25
|
|
|
$
|
0.69
|
|
|
$
|
0.53
|
|
Unaudited Condensed Consolidated Statements of Comprehensive Income
(In thousands)
|
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net income
|
$
|
104,882
|
|
|
$
|
75,722
|
|
|
$
|
209,535
|
|
|
$
|
160,314
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation
|
15,879
|
|
|
(3,204
|
)
|
|
15,316
|
|
|
(22,184
|
)
|
||||
Net change in unrecognized gains/losses on derivative instruments, net of tax
|
457
|
|
|
2,629
|
|
|
1,250
|
|
|
3,361
|
|
||||
Change in unrealized gain on pension plan, net of tax
|
(30
|
)
|
|
—
|
|
|
(67
|
)
|
|
—
|
|
||||
Total other comprehensive income (loss)
|
16,306
|
|
|
(575
|
)
|
|
16,499
|
|
|
(18,823
|
)
|
||||
Total comprehensive income
|
$
|
121,188
|
|
|
$
|
75,147
|
|
|
$
|
226,034
|
|
|
$
|
141,491
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Stockholders’ Equity
(In thousands)
|
||||||||||||||||||||||
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Retained
Earnings
|
|
Accumulated
Other
Comprehensive
Income
|
|
Total
Stockholders’
Equity
|
|||||||||||||
|
Shares
Issued
|
|
Amount
|
|
||||||||||||||||||
BALANCE, January 1, 2014
|
300,805
|
|
|
$
|
3,008
|
|
|
$
|
1,006,084
|
|
|
$
|
1,321,642
|
|
|
$
|
20,011
|
|
|
$
|
2,350,745
|
|
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
209,535
|
|
|
—
|
|
|
209,535
|
|
|||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
16,499
|
|
|
16,499
|
|
|||||
Restricted stock units vested
|
562
|
|
|
6
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
11,783
|
|
|
—
|
|
|
—
|
|
|
11,783
|
|
|||||
Exercise of stock options
|
823
|
|
|
8
|
|
|
4,199
|
|
|
—
|
|
|
—
|
|
|
4,207
|
|
|||||
Excess tax benefit from stock-based payments
|
—
|
|
|
—
|
|
|
9,747
|
|
|
—
|
|
|
—
|
|
|
9,747
|
|
|||||
BALANCE, June 30, 2014
|
302,190
|
|
|
$
|
3,022
|
|
|
$
|
1,031,807
|
|
|
$
|
1,531,177
|
|
|
$
|
36,510
|
|
|
$
|
2,602,516
|
|
Note 1.
|
Interim Financial Statements
|
Note 2.
|
Financial Statement Information
|
|
June 30,
|
|
December 31,
|
||||
|
2014
|
|
2013
|
||||
Aftermarket and refurbished products
|
$
|
955,428
|
|
|
$
|
706,600
|
|
Salvage and remanufactured products
|
391,295
|
|
|
370,352
|
|
||
|
$
|
1,346,723
|
|
|
$
|
1,076,952
|
|
|
North America
|
|
Europe
|
|
Specialty
|
|
Total
|
||||||||
Balance as of January 1, 2014
|
$
|
1,358,937
|
|
|
$
|
578,507
|
|
|
$
|
—
|
|
|
$
|
1,937,444
|
|
Business acquisitions and adjustments to previously recorded goodwill
|
49,451
|
|
|
74,313
|
|
|
234,381
|
|
|
358,145
|
|
||||
Exchange rate effects
|
(317
|
)
|
|
13,675
|
|
|
(4
|
)
|
|
13,354
|
|
||||
Balance as of June 30, 2014
|
$
|
1,408,071
|
|
|
$
|
666,495
|
|
|
$
|
234,377
|
|
|
$
|
2,308,943
|
|
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||||||||
Trade names and trademarks
|
$
|
168,537
|
|
|
$
|
(31,982
|
)
|
|
$
|
136,555
|
|
|
$
|
143,577
|
|
|
$
|
(27,950
|
)
|
|
$
|
115,627
|
|
Customer relationships
|
69,575
|
|
|
(18,191
|
)
|
|
51,384
|
|
|
29,583
|
|
|
(10,770
|
)
|
|
18,813
|
|
||||||
Software and other technology related assets
|
47,087
|
|
|
(6,971
|
)
|
|
40,116
|
|
|
20,384
|
|
|
(2,718
|
)
|
|
17,666
|
|
||||||
Covenants not to compete
|
5,173
|
|
|
(2,799
|
)
|
|
2,374
|
|
|
3,979
|
|
|
(2,346
|
)
|
|
1,633
|
|
||||||
|
$
|
290,372
|
|
|
$
|
(59,943
|
)
|
|
$
|
230,429
|
|
|
$
|
197,523
|
|
|
$
|
(43,784
|
)
|
|
$
|
153,739
|
|
Balance as of January 1, 2014
|
$
|
12,447
|
|
Warranty expense
|
15,375
|
|
|
Warranty claims
|
(13,623
|
)
|
|
Balance as of June 30, 2014
|
$
|
14,199
|
|
Note 3.
|
Equity Incentive Plans
|
|
Shares
Available For
Grant
|
|
RSUs
|
|
Stock Options
|
|
Restricted Stock
|
||||||||||||||||
Number
Outstanding
|
|
Weighted
Average
Grant Date
Fair Value
|
|
Number
Outstanding
|
|
Weighted
Average
Exercise
Price
|
|
Number
Outstanding
|
|
Weighted
Average
Grant Date
Fair Value
|
|||||||||||||
Balance, January 1, 2014
|
13,965,440
|
|
|
2,558,213
|
|
|
$
|
16.63
|
|
|
6,832,331
|
|
|
$
|
7.04
|
|
|
20,000
|
|
|
$
|
9.30
|
|
Granted
|
(790,152
|
)
|
|
663,397
|
|
|
31.83
|
|
|
126,755
|
|
|
32.31
|
|
|
—
|
|
|
—
|
|
|||
Exercised
|
—
|
|
|
—
|
|
|
—
|
|
|
(822,039
|
)
|
|
5.12
|
|
|
—
|
|
|
—
|
|
|||
Vested
|
—
|
|
|
(562,198
|
)
|
|
16.56
|
|
|
—
|
|
|
—
|
|
|
(10,000
|
)
|
|
9.30
|
|
|||
Canceled
|
102,703
|
|
|
(56,830
|
)
|
|
20.11
|
|
|
(45,873
|
)
|
|
13.01
|
|
|
—
|
|
|
—
|
|
|||
Balance, June 30, 2014
|
13,277,991
|
|
|
2,602,582
|
|
|
$
|
20.44
|
|
|
6,091,174
|
|
|
$
|
7.78
|
|
|
10,000
|
|
|
$
|
9.30
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
RSUs
|
$
|
4,795
|
|
|
$
|
4,443
|
|
|
$
|
10,191
|
|
|
$
|
8,115
|
|
Stock options
|
696
|
|
|
1,124
|
|
|
1,500
|
|
|
2,333
|
|
||||
Restricted stock
|
46
|
|
|
46
|
|
|
92
|
|
|
114
|
|
||||
Total stock-based compensation expense
|
$
|
5,537
|
|
|
$
|
5,613
|
|
|
$
|
11,783
|
|
|
$
|
10,562
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Cost of goods sold
|
$
|
100
|
|
|
$
|
98
|
|
|
$
|
203
|
|
|
$
|
196
|
|
Facility and warehouse expenses
|
566
|
|
|
687
|
|
|
1,145
|
|
|
1,371
|
|
||||
Selling, general and administrative expenses
|
4,871
|
|
|
4,828
|
|
|
10,435
|
|
|
8,995
|
|
||||
|
5,537
|
|
|
5,613
|
|
|
11,783
|
|
|
10,562
|
|
||||
Income tax benefit
|
(2,131
|
)
|
|
(2,189
|
)
|
|
(4,536
|
)
|
|
(4,119
|
)
|
||||
Total stock-based compensation expense, net of tax
|
$
|
3,406
|
|
|
$
|
3,424
|
|
|
$
|
7,247
|
|
|
$
|
6,443
|
|
|
RSUs
|
|
Stock
Options
|
|
Restricted
Stock
|
|
Total
|
||||||||
Remainder of 2014
|
$
|
8,805
|
|
|
$
|
1,455
|
|
|
$
|
47
|
|
|
$
|
10,307
|
|
2015
|
13,608
|
|
|
398
|
|
|
—
|
|
|
14,006
|
|
||||
2016
|
8,498
|
|
|
331
|
|
|
—
|
|
|
8,829
|
|
||||
2017
|
5,034
|
|
|
9
|
|
|
—
|
|
|
5,043
|
|
||||
2018
|
2,546
|
|
|
—
|
|
|
—
|
|
|
2,546
|
|
||||
2019
|
108
|
|
|
—
|
|
|
—
|
|
|
108
|
|
||||
Total unrecognized compensation expense
|
$
|
38,599
|
|
|
$
|
2,193
|
|
|
$
|
47
|
|
|
$
|
40,839
|
|
Note 4.
|
Long-Term Obligations
|
|
June 30,
|
|
December 31,
|
||||
|
2014
|
|
2013
|
||||
Senior secured credit agreement:
|
|
|
|
||||
Term loans payable
|
$
|
444,375
|
|
|
$
|
438,750
|
|
Revolving credit facility
|
731,201
|
|
|
233,804
|
|
||
Senior notes
|
600,000
|
|
|
600,000
|
|
||
Receivables securitization facility
|
80,000
|
|
|
—
|
|
||
Notes payable through October 2018 at weighted average interest rates of 1.1%
|
55,908
|
|
|
15,730
|
|
||
Other long-term debt at weighted average interest rates of 3.1% and 3.5%, respectively
|
39,840
|
|
|
17,497
|
|
||
|
1,951,324
|
|
|
1,305,781
|
|
||
Less current maturities
|
(71,487
|
)
|
|
(41,535
|
)
|
||
|
$
|
1,879,837
|
|
|
$
|
1,264,246
|
|
Note 5.
|
Derivative Instruments and Hedging Activities
|
Note 6.
|
Fair Value Measurements
|
|
Balance as of June 30, 2014
|
|
Fair Value Measurements as of June 30, 2014
|
||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash surrender value of life insurance
|
$
|
27,410
|
|
|
$
|
—
|
|
|
$
|
27,410
|
|
|
$
|
—
|
|
Total Assets
|
$
|
27,410
|
|
|
$
|
—
|
|
|
$
|
27,410
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent consideration liabilities
|
$
|
8,762
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
8,762
|
|
Deferred compensation liabilities
|
26,805
|
|
|
—
|
|
|
26,805
|
|
|
—
|
|
||||
Interest rate swaps
|
6,932
|
|
|
—
|
|
|
6,932
|
|
|
—
|
|
||||
Total Liabilities
|
$
|
42,499
|
|
|
$
|
—
|
|
|
$
|
33,737
|
|
|
$
|
8,762
|
|
|
Balance as of December 31, 2013
|
|
Fair Value Measurements as of December 31, 2013
|
||||||||||||
|
Level 1
|
|
Level 2
|
|
Level 3
|
||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash surrender value of life insurance
|
$
|
25,745
|
|
|
$
|
—
|
|
|
$
|
25,745
|
|
|
$
|
—
|
|
Total Assets
|
$
|
25,745
|
|
|
$
|
—
|
|
|
$
|
25,745
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent consideration liabilities
|
$
|
55,653
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
55,653
|
|
Deferred compensation liabilities
|
25,232
|
|
|
—
|
|
|
25,232
|
|
|
—
|
|
||||
Foreign currency forward contracts
|
21,818
|
|
|
—
|
|
|
21,818
|
|
|
—
|
|
||||
Interest rate swaps
|
8,470
|
|
|
—
|
|
|
8,470
|
|
|
—
|
|
||||
Total Liabilities
|
$
|
111,173
|
|
|
$
|
—
|
|
|
$
|
55,520
|
|
|
$
|
55,653
|
|
|
June 30,
|
|
December 31,
|
||
|
2014
|
|
2013
|
||
Unobservable Input
|
(Weighted Average)
|
||||
Probability of achieving payout targets
|
94.0
|
%
|
|
70.6
|
%
|
Discount rate
|
7.5
|
%
|
|
6.5
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Beginning Balance
|
$
|
57,091
|
|
|
$
|
49,565
|
|
|
$
|
55,653
|
|
|
$
|
90,009
|
|
Contingent consideration liabilities recorded for business acquisitions
|
2,740
|
|
|
261
|
|
|
7,057
|
|
|
2,650
|
|
||||
Payments
|
(50,299
|
)
|
|
(581
|
)
|
|
(52,305
|
)
|
|
(38,349
|
)
|
||||
(Decrease) increase in fair value included in earnings
|
(790
|
)
|
|
230
|
|
|
(2,012
|
)
|
|
1,053
|
|
||||
Exchange rate effects
|
20
|
|
|
(2
|
)
|
|
369
|
|
|
(5,890
|
)
|
||||
Ending Balance
|
$
|
8,762
|
|
|
$
|
49,473
|
|
|
$
|
8,762
|
|
|
$
|
49,473
|
|
Note 7.
|
Commitments and Contingencies
|
Six months ending December 31, 2014
|
$
|
69,215
|
|
Years ending December 31:
|
|
||
2015
|
128,982
|
|
|
2016
|
108,931
|
|
|
2017
|
89,365
|
|
|
2018
|
72,992
|
|
|
2019
|
57,470
|
|
|
Thereafter
|
221,946
|
|
|
Future Minimum Lease Payments
|
$
|
748,901
|
|
Note 8.
|
Business Combinations
|
|
Six Months Ended
|
|
Year Ended
|
||||||||||||||||||||
|
June 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Keystone Specialty
|
|
Other Acquisitions
|
|
Total
|
|
Sator
|
|
Other Acquisitions
|
|
Total
|
||||||||||||
Receivables
|
$
|
48,473
|
|
|
$
|
52,992
|
|
|
$
|
101,465
|
|
|
$
|
61,639
|
|
|
$
|
38,685
|
|
|
$
|
100,324
|
|
Receivable reserves
|
(4,403
|
)
|
|
(2,539
|
)
|
|
(6,942
|
)
|
|
(8,563
|
)
|
|
(3,246
|
)
|
|
(11,809
|
)
|
||||||
Inventory
|
151,013
|
|
|
71,335
|
|
|
222,348
|
|
|
71,784
|
|
|
26,455
|
|
|
98,239
|
|
||||||
Income taxes receivable
|
13,972
|
|
|
—
|
|
|
13,972
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Prepaid expenses and other current assets
|
8,339
|
|
|
1,846
|
|
|
10,185
|
|
|
7,184
|
|
|
1,933
|
|
|
9,117
|
|
||||||
Property and equipment
|
38,095
|
|
|
13,293
|
|
|
51,388
|
|
|
19,484
|
|
|
14,015
|
|
|
33,499
|
|
||||||
Goodwill
|
234,381
|
|
|
123,764
|
|
|
358,145
|
|
|
142,721
|
|
|
92,726
|
|
|
235,447
|
|
||||||
Other intangibles
|
70,830
|
|
|
20,234
|
|
|
91,064
|
|
|
45,293
|
|
|
12,353
|
|
|
57,646
|
|
||||||
Other assets
|
7,805
|
|
|
1,493
|
|
|
9,298
|
|
|
2,049
|
|
|
1,251
|
|
|
3,300
|
|
||||||
Deferred income taxes
|
(17,418
|
)
|
|
915
|
|
|
(16,503
|
)
|
|
(14,100
|
)
|
|
(564
|
)
|
|
(14,664
|
)
|
||||||
Current liabilities assumed
|
(65,112
|
)
|
|
(30,606
|
)
|
|
(95,718
|
)
|
|
(49,593
|
)
|
|
(36,799
|
)
|
|
(86,392
|
)
|
||||||
Debt assumed
|
—
|
|
|
(26,425
|
)
|
|
(26,425
|
)
|
|
—
|
|
|
(664
|
)
|
|
(664
|
)
|
||||||
Other noncurrent liabilities assumed
|
(14,147
|
)
|
|
(7,670
|
)
|
|
(21,817
|
)
|
|
(5,074
|
)
|
|
—
|
|
|
(5,074
|
)
|
||||||
Contingent consideration liabilities
|
—
|
|
|
(7,057
|
)
|
|
(7,057
|
)
|
|
—
|
|
|
(3,854
|
)
|
|
(3,854
|
)
|
||||||
Other purchase price obligations
|
(13,278
|
)
|
|
(228
|
)
|
|
(13,506
|
)
|
|
—
|
|
|
(214
|
)
|
|
(214
|
)
|
||||||
Notes issued
|
(31,500
|
)
|
|
(11,454
|
)
|
|
(42,954
|
)
|
|
—
|
|
|
(7,482
|
)
|
|
(7,482
|
)
|
||||||
Settlement of pre-existing balances
|
—
|
|
|
(4,841
|
)
|
|
(4,841
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Cash used in acquisitions, net of cash acquired
|
$
|
427,050
|
|
|
$
|
195,052
|
|
|
$
|
622,102
|
|
|
$
|
272,824
|
|
|
$
|
134,595
|
|
|
$
|
407,419
|
|
|
|||||||||||||||
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenue, as reported
|
$
|
1,709,132
|
|
|
$
|
1,251,748
|
|
|
$
|
3,334,909
|
|
|
$
|
2,447,745
|
|
Revenue of purchased businesses for the period prior to acquisition:
|
|
|
|
|
|
|
|
||||||||
Keystone Specialty
|
—
|
|
|
196,059
|
|
|
3,443
|
|
|
363,502
|
|
||||
Sator
|
—
|
|
|
31,306
|
|
|
—
|
|
|
126,309
|
|
||||
Other acquisitions
|
36,707
|
|
|
125,624
|
|
|
93,550
|
|
|
250,850
|
|
||||
Pro forma revenue
|
$
|
1,745,839
|
|
|
$
|
1,604,737
|
|
|
$
|
3,431,902
|
|
|
$
|
3,188,406
|
|
|
|
|
|
|
|
|
|
||||||||
Net income, as reported
|
$
|
104,882
|
|
|
$
|
75,722
|
|
|
$
|
209,535
|
|
|
$
|
160,314
|
|
Net income of purchased businesses for the period prior to acquisition, including pro forma purchase accounting adjustments:
|
|
|
|
|
|
|
|
||||||||
Keystone Specialty
|
—
|
|
|
10,891
|
|
|
438
|
|
|
17,600
|
|
||||
Sator
|
—
|
|
|
2,861
|
|
|
—
|
|
|
5,726
|
|
||||
Other acquisitions
|
4,387
|
|
|
4,737
|
|
|
5,147
|
|
|
5,543
|
|
||||
Pro forma net income
|
$
|
109,269
|
|
|
$
|
94,211
|
|
|
$
|
215,120
|
|
|
$
|
189,183
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share-basic, as reported
|
$
|
0.35
|
|
|
$
|
0.25
|
|
|
$
|
0.69
|
|
|
$
|
0.54
|
|
Effect of purchased businesses for the period prior to acquisition:
|
|
|
|
|
|
|
|
||||||||
Keystone Specialty
|
—
|
|
|
0.04
|
|
|
0.00
|
|
|
0.06
|
|
||||
Sator
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.02
|
|
||||
Other acquisitions
|
0.01
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
||||
Pro forma earnings per share-basic
(a)
|
$
|
0.36
|
|
|
$
|
0.31
|
|
|
$
|
0.71
|
|
|
$
|
0.63
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share-diluted, as reported
|
$
|
0.34
|
|
|
$
|
0.25
|
|
|
$
|
0.69
|
|
|
$
|
0.53
|
|
Effect of purchased businesses for the period prior to acquisition:
|
|
|
|
|
|
|
|
||||||||
Keystone Specialty
|
—
|
|
|
0.04
|
|
|
0.00
|
|
|
0.06
|
|
||||
Sator
|
—
|
|
|
0.01
|
|
|
—
|
|
|
0.02
|
|
||||
Other acquisitions
|
0.01
|
|
|
0.02
|
|
|
0.02
|
|
|
0.02
|
|
||||
Pro forma earnings per share-diluted
(a)
|
$
|
0.36
|
|
|
$
|
0.31
|
|
|
$
|
0.70
|
|
|
$
|
0.62
|
|
Note 9.
|
Restructuring and Acquisition Related Expenses
|
Note 10.
|
Earnings Per Share
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net Income
|
$
|
104,882
|
|
|
$
|
75,722
|
|
|
$
|
209,535
|
|
|
$
|
160,314
|
|
Denominator for basic earnings per share—Weighted-average shares outstanding
|
302,030
|
|
|
299,159
|
|
|
301,719
|
|
|
298,690
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
RSUs
|
821
|
|
|
758
|
|
|
876
|
|
|
721
|
|
||||
Stock options
|
2,981
|
|
|
3,728
|
|
|
3,074
|
|
|
3,865
|
|
||||
Restricted stock
|
5
|
|
|
12
|
|
|
8
|
|
|
19
|
|
||||
Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding
|
305,837
|
|
|
303,657
|
|
|
305,677
|
|
|
303,295
|
|
||||
Earnings per share, basic
|
$
|
0.35
|
|
|
$
|
0.25
|
|
|
$
|
0.69
|
|
|
$
|
0.54
|
|
Earnings per share, diluted
|
$
|
0.34
|
|
|
$
|
0.25
|
|
|
$
|
0.69
|
|
|
$
|
0.53
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
|
|
June 30,
|
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Antidilutive securities:
|
|
|
|
|
|
|
|
||||
RSUs
|
405
|
|
|
—
|
|
|
203
|
|
|
—
|
|
Stock Options
|
117
|
|
|
—
|
|
|
122
|
|
|
—
|
|
Note 11.
|
Income Taxes
|
Note 12.
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
||||||||||||||||||||||||
|
|
June 30, 2014
|
|
June 30, 2013
|
|
||||||||||||||||||||||||
|
|
Foreign
Currency Translation |
|
Unrealized Gain (Loss)
on Cash Flow Hedges |
|
Change in Unrealized Gain on Pension Plan
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
Foreign
Currency Translation |
|
Unrealized Gain (Loss)
on Cash Flow Hedges |
|
Accumulated
Other Comprehensive Income (Loss) |
|
||||||||||||||
Beginning balance
|
|
$
|
24,343
|
|
|
$
|
(4,803
|
)
|
|
$
|
664
|
|
|
$
|
20,204
|
|
|
$
|
(8,130
|
)
|
|
$
|
(9,359
|
)
|
|
$
|
(17,489
|
)
|
|
Pretax income (loss)
|
|
15,879
|
|
|
466
|
|
|
—
|
|
|
16,345
|
|
|
(3,204
|
)
|
|
1,648
|
|
|
(1,556
|
)
|
|
|||||||
Income tax effect
|
|
—
|
|
|
(122
|
)
|
|
—
|
|
|
(122
|
)
|
|
—
|
|
|
(481
|
)
|
|
(481
|
)
|
|
|||||||
Reclassification of unrealized loss (gain)
|
|
—
|
|
|
133
|
|
|
(43
|
)
|
|
90
|
|
|
—
|
|
|
2,117
|
|
|
2,117
|
|
|
|||||||
Reclassification of deferred income taxes
|
|
—
|
|
|
(20
|
)
|
|
13
|
|
|
(7
|
)
|
|
—
|
|
|
(760
|
)
|
|
(760
|
)
|
|
|||||||
Hedge ineffectiveness
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167
|
|
|
167
|
|
|
|||||||
Income tax effect
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
|
(62
|
)
|
|
|||||||
Ending balance
|
|
$
|
40,222
|
|
|
$
|
(4,346
|
)
|
|
$
|
634
|
|
|
$
|
36,510
|
|
|
$
|
(11,334
|
)
|
|
$
|
(6,730
|
)
|
|
$
|
(18,064
|
)
|
|
|
|
Six Months Ended
|
|
Six Months Ended
|
|
||||||||||||||||||||||||
|
|
June 30, 2014
|
|
June 30, 2013
|
|
||||||||||||||||||||||||
|
|
Foreign
Currency Translation |
|
Unrealized Gain (Loss)
on Cash Flow Hedges |
|
Change in Unrealized Gain on Pension Plan
|
|
Accumulated
Other Comprehensive Income (Loss) |
|
Foreign
Currency Translation |
|
Unrealized Gain (Loss)
on Cash Flow Hedges |
|
Accumulated
Other Comprehensive Income (Loss) |
|
||||||||||||||
Beginning balance
|
|
$
|
24,906
|
|
|
$
|
(5,596
|
)
|
|
$
|
701
|
|
|
$
|
20,011
|
|
|
$
|
10,850
|
|
|
$
|
(10,091
|
)
|
|
$
|
759
|
|
|
Pretax income (loss)
|
|
15,316
|
|
|
(176
|
)
|
|
—
|
|
|
15,140
|
|
|
(22,184
|
)
|
|
1,145
|
|
|
(21,039
|
)
|
|
|||||||
Income tax effect
|
|
—
|
|
|
46
|
|
|
—
|
|
|
46
|
|
|
—
|
|
|
(342
|
)
|
|
(342
|
)
|
|
|||||||
Reclassification of unrealized loss (gain)
|
|
—
|
|
|
2,093
|
|
|
(90
|
)
|
|
2,003
|
|
|
—
|
|
|
3,815
|
|
|
3,815
|
|
|
|||||||
Reclassification of deferred income taxes
|
|
—
|
|
|
(713
|
)
|
|
23
|
|
|
(690
|
)
|
|
—
|
|
|
(1,362
|
)
|
|
(1,362
|
)
|
|
|||||||
Hedge ineffectiveness
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
167
|
|
|
167
|
|
|
|||||||
Income tax effect
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(62
|
)
|
|
(62
|
)
|
|
|||||||
Ending balance
|
|
$
|
40,222
|
|
|
$
|
(4,346
|
)
|
|
$
|
634
|
|
|
$
|
36,510
|
|
|
$
|
(11,334
|
)
|
|
$
|
(6,730
|
)
|
|
$
|
(18,064
|
)
|
|
Note 13.
|
Segment and Geographic Information
|
|
North America
|
|
Europe
|
|
Specialty
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Three Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third Party
|
$
|
1,025,989
|
|
|
$
|
465,173
|
|
|
$
|
217,970
|
|
|
$
|
—
|
|
|
$
|
1,709,132
|
|
Intersegment
|
101
|
|
|
—
|
|
|
430
|
|
|
(531
|
)
|
|
—
|
|
|||||
Total segment revenue
|
$
|
1,026,090
|
|
|
$
|
465,173
|
|
|
$
|
218,400
|
|
|
$
|
(531
|
)
|
|
$
|
1,709,132
|
|
Segment EBITDA
|
$
|
137,150
|
|
|
$
|
45,945
|
|
|
$
|
28,356
|
|
|
$
|
—
|
|
|
$
|
211,451
|
|
Depreciation and amortization
|
17,508
|
|
|
8,491
|
|
|
5,048
|
|
|
—
|
|
|
31,047
|
|
|||||
Three Months Ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third Party
|
$
|
953,918
|
|
|
$
|
297,830
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,251,748
|
|
Intersegment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total segment revenue
|
$
|
953,918
|
|
|
$
|
297,830
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,251,748
|
|
Segment EBITDA
|
$
|
118,481
|
|
|
$
|
37,825
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
156,306
|
|
Depreciation and amortization
|
16,251
|
|
|
4,420
|
|
|
—
|
|
|
—
|
|
|
20,671
|
|
|
North America
|
|
Europe
|
|
Specialty
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Six Months Ended June 30, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third Party
|
$
|
2,055,255
|
|
|
$
|
884,887
|
|
|
$
|
394,767
|
|
|
$
|
—
|
|
|
$
|
3,334,909
|
|
Intersegment
|
134
|
|
|
—
|
|
|
656
|
|
|
(790
|
)
|
|
—
|
|
|||||
Total segment revenue
|
$
|
2,055,389
|
|
|
$
|
884,887
|
|
|
$
|
395,423
|
|
|
$
|
(790
|
)
|
|
$
|
3,334,909
|
|
Segment EBITDA
|
$
|
283,288
|
|
|
$
|
87,100
|
|
|
$
|
46,160
|
|
|
$
|
—
|
|
|
$
|
416,548
|
|
Depreciation and amortization
|
34,653
|
|
|
15,457
|
|
|
8,783
|
|
|
—
|
|
|
58,893
|
|
|||||
Six Months Ended June 30, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third Party
|
$
|
1,937,306
|
|
|
$
|
510,439
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,447,745
|
|
Intersegment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total segment revenue
|
$
|
1,937,306
|
|
|
$
|
510,439
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
2,447,745
|
|
Segment EBITDA
|
$
|
254,548
|
|
|
$
|
63,489
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
318,037
|
|
Depreciation and amortization
|
32,138
|
|
|
7,573
|
|
|
—
|
|
|
—
|
|
|
39,711
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Segment EBITDA
|
$
|
211,451
|
|
|
$
|
156,306
|
|
|
$
|
416,548
|
|
|
$
|
318,037
|
|
Deduct:
|
|
|
|
|
|
|
|
||||||||
Restructuring and acquisition related expenses
(1)
|
5,901
|
|
|
3,680
|
|
|
9,222
|
|
|
5,185
|
|
||||
Change in fair value of contingent consideration liabilities
(2)
|
(790
|
)
|
|
230
|
|
|
(2,012
|
)
|
|
1,053
|
|
||||
Add:
|
|
|
|
|
|
|
|
||||||||
Equity in earnings of unconsolidated subsidiaries
|
(442
|
)
|
|
—
|
|
|
(478
|
)
|
|
—
|
|
||||
EBITDA
|
205,898
|
|
|
152,396
|
|
|
408,860
|
|
|
311,799
|
|
||||
Depreciation and amortization
|
31,047
|
|
|
20,671
|
|
|
58,893
|
|
|
39,711
|
|
||||
Interest expense, net
|
15,628
|
|
|
12,492
|
|
|
31,746
|
|
|
21,087
|
|
||||
Loss on debt extinguishment
|
—
|
|
|
2,795
|
|
|
324
|
|
|
2,795
|
|
||||
Provision for income taxes
|
54,341
|
|
|
40,716
|
|
|
108,362
|
|
|
87,892
|
|
||||
Net income
|
$
|
104,882
|
|
|
$
|
75,722
|
|
|
$
|
209,535
|
|
|
$
|
160,314
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
21,355
|
|
|
$
|
16,138
|
|
|
$
|
40,276
|
|
|
$
|
33,702
|
|
Europe
|
10,824
|
|
|
2,553
|
|
|
24,275
|
|
|
6,449
|
|
||||
Specialty
|
1,436
|
|
|
—
|
|
|
2,780
|
|
|
—
|
|
||||
|
$
|
33,615
|
|
|
$
|
18,691
|
|
|
$
|
67,331
|
|
|
$
|
40,151
|
|
|
June 30,
2014 |
|
December 31,
2013 |
||||
Receivables, net
|
|
|
|
||||
North America
|
$
|
321,531
|
|
|
$
|
277,395
|
|
Europe
|
234,343
|
|
|
180,699
|
|
||
Specialty
|
68,426
|
|
|
—
|
|
||
Total receivables, net
|
624,300
|
|
|
458,094
|
|
||
Inventory
|
|
|
|
||||
North America
|
783,749
|
|
|
748,167
|
|
||
Europe
|
401,691
|
|
|
328,785
|
|
||
Specialty
|
161,283
|
|
|
—
|
|
||
Total inventory
|
1,346,723
|
|
|
1,076,952
|
|
||
Property and Equipment, net
|
|
|
|
||||
North America
|
457,027
|
|
|
447,528
|
|
||
Europe
|
126,426
|
|
|
99,123
|
|
||
Specialty
|
38,147
|
|
|
—
|
|
||
Total property and equipment, net
|
621,600
|
|
|
546,651
|
|
||
Other unallocated assets
|
2,906,222
|
|
|
2,437,077
|
|
||
Total assets
|
$
|
5,498,845
|
|
|
$
|
4,518,774
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
1,135,298
|
|
|
$
|
915,152
|
|
|
$
|
2,243,168
|
|
|
$
|
1,804,493
|
|
United Kingdom
|
337,931
|
|
|
229,096
|
|
|
654,877
|
|
|
441,705
|
|
||||
Other countries
|
235,903
|
|
|
107,500
|
|
|
436,864
|
|
|
201,547
|
|
||||
|
$
|
1,709,132
|
|
|
$
|
1,251,748
|
|
|
$
|
3,334,909
|
|
|
$
|
2,447,745
|
|
|
June 30,
2014 |
|
December 31,
2013 |
||||
Long-lived Assets
|
|
|
|
||||
United States
|
$
|
465,178
|
|
|
$
|
418,869
|
|
United Kingdom
|
94,929
|
|
|
77,827
|
|
||
Other countries
|
61,493
|
|
|
49,955
|
|
||
|
$
|
621,600
|
|
|
$
|
546,651
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Aftermarket, other new and refurbished products
|
$
|
1,169,021
|
|
|
$
|
737,128
|
|
|
$
|
2,273,670
|
|
|
$
|
1,405,084
|
|
Recycled, remanufactured and related products and services
|
371,840
|
|
|
356,834
|
|
|
736,744
|
|
|
711,270
|
|
||||
Other
|
168,271
|
|
|
157,786
|
|
|
324,495
|
|
|
331,391
|
|
||||
|
$
|
1,709,132
|
|
|
$
|
1,251,748
|
|
|
$
|
3,334,909
|
|
|
$
|
2,447,745
|
|
Note 14.
|
Condensed Consolidating Financial Information
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Balance Sheets
(In thousands)
|
|||||||||||||||||||
|
June 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
$
|
15,241
|
|
|
$
|
13,678
|
|
|
$
|
80,645
|
|
|
$
|
—
|
|
|
$
|
109,564
|
|
Receivables, net
|
13
|
|
|
238,153
|
|
|
386,134
|
|
|
—
|
|
|
624,300
|
|
|||||
Intercompany receivables, net
|
4,727
|
|
|
—
|
|
|
6,255
|
|
|
(10,982
|
)
|
|
—
|
|
|||||
Inventory
|
—
|
|
|
875,982
|
|
|
470,741
|
|
|
—
|
|
|
1,346,723
|
|
|||||
Deferred income taxes
|
3,071
|
|
|
67,609
|
|
|
3,412
|
|
|
—
|
|
|
74,092
|
|
|||||
Prepaid expenses and other current assets
|
17,361
|
|
|
34,743
|
|
|
33,943
|
|
|
—
|
|
|
86,047
|
|
|||||
Total Current Assets
|
40,413
|
|
|
1,230,165
|
|
|
981,130
|
|
|
(10,982
|
)
|
|
2,240,726
|
|
|||||
Property and Equipment, net
|
581
|
|
|
466,193
|
|
|
154,826
|
|
|
—
|
|
|
621,600
|
|
|||||
Intangible Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
—
|
|
|
1,520,958
|
|
|
787,985
|
|
|
—
|
|
|
2,308,943
|
|
|||||
Other intangibles, net
|
—
|
|
|
129,329
|
|
|
101,100
|
|
|
—
|
|
|
230,429
|
|
|||||
Investment in Subsidiaries
|
3,005,695
|
|
|
293,913
|
|
|
—
|
|
|
(3,299,608
|
)
|
|
—
|
|
|||||
Intercompany Notes Receivable
|
639,308
|
|
|
31,948
|
|
|
—
|
|
|
(671,256
|
)
|
|
—
|
|
|||||
Other Assets
|
52,330
|
|
|
27,944
|
|
|
21,862
|
|
|
(4,989
|
)
|
|
97,147
|
|
|||||
Total Assets
|
$
|
3,738,327
|
|
|
$
|
3,700,450
|
|
|
$
|
2,046,903
|
|
|
$
|
(3,986,835
|
)
|
|
$
|
5,498,845
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
650
|
|
|
$
|
165,930
|
|
|
$
|
226,079
|
|
|
$
|
—
|
|
|
$
|
392,659
|
|
Intercompany payables, net
|
—
|
|
|
6,255
|
|
|
4,727
|
|
|
(10,982
|
)
|
|
—
|
|
|||||
Accrued expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued payroll-related liabilities
|
7,242
|
|
|
34,713
|
|
|
28,560
|
|
|
—
|
|
|
70,515
|
|
|||||
Sales taxes payable
|
—
|
|
|
6,236
|
|
|
44,762
|
|
|
—
|
|
|
50,998
|
|
|||||
Other accrued expenses
|
5,429
|
|
|
76,959
|
|
|
44,731
|
|
|
—
|
|
|
127,119
|
|
|||||
Contingent consideration liabilities
|
—
|
|
|
1,726
|
|
|
578
|
|
|
—
|
|
|
2,304
|
|
|||||
Other current liabilities
|
1,560
|
|
|
14,959
|
|
|
18,607
|
|
|
—
|
|
|
35,126
|
|
|||||
Current portion of long-term obligations
|
54,000
|
|
|
1,884
|
|
|
15,603
|
|
|
—
|
|
|
71,487
|
|
|||||
Total Current Liabilities
|
68,881
|
|
|
308,662
|
|
|
383,647
|
|
|
(10,982
|
)
|
|
750,208
|
|
|||||
Long-Term Obligations, Excluding Current Portion
|
1,030,875
|
|
|
9,303
|
|
|
839,659
|
|
|
—
|
|
|
1,879,837
|
|
|||||
Intercompany Notes Payable
|
—
|
|
|
576,219
|
|
|
95,037
|
|
|
(671,256
|
)
|
|
—
|
|
|||||
Deferred Income Taxes
|
—
|
|
|
137,166
|
|
|
28,275
|
|
|
(4,989
|
)
|
|
160,452
|
|
|||||
Other Noncurrent Liabilities
|
36,055
|
|
|
62,015
|
|
|
7,762
|
|
|
—
|
|
|
105,832
|
|
|||||
Stockholders’ Equity
|
2,602,516
|
|
|
2,607,085
|
|
|
692,523
|
|
|
(3,299,608
|
)
|
|
2,602,516
|
|
|||||
Total Liabilities and Stockholders’ Equity
|
$
|
3,738,327
|
|
|
$
|
3,700,450
|
|
|
$
|
2,046,903
|
|
|
$
|
(3,986,835
|
)
|
|
$
|
5,498,845
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Balance Sheets
(In thousands)
|
|||||||||||||||||||
|
December 31, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
$
|
77,926
|
|
|
$
|
13,693
|
|
|
$
|
58,869
|
|
|
$
|
—
|
|
|
$
|
150,488
|
|
Receivables, net
|
—
|
|
|
126,926
|
|
|
331,168
|
|
|
—
|
|
|
458,094
|
|
|||||
Intercompany receivables, net
|
2,275
|
|
|
6,923
|
|
|
—
|
|
|
(9,198
|
)
|
|
—
|
|
|||||
Inventory
|
—
|
|
|
687,164
|
|
|
389,788
|
|
|
—
|
|
|
1,076,952
|
|
|||||
Deferred income taxes
|
3,189
|
|
|
57,422
|
|
|
3,327
|
|
|
—
|
|
|
63,938
|
|
|||||
Prepaid expenses and other current assets
|
7,924
|
|
|
24,190
|
|
|
18,231
|
|
|
—
|
|
|
50,345
|
|
|||||
Total Current Assets
|
91,314
|
|
|
916,318
|
|
|
801,383
|
|
|
(9,198
|
)
|
|
1,799,817
|
|
|||||
Property and Equipment, net
|
668
|
|
|
419,617
|
|
|
126,366
|
|
|
—
|
|
|
546,651
|
|
|||||
Intangible Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
—
|
|
|
1,248,746
|
|
|
688,698
|
|
|
—
|
|
|
1,937,444
|
|
|||||
Other intangibles, net
|
—
|
|
|
56,069
|
|
|
97,670
|
|
|
—
|
|
|
153,739
|
|
|||||
Investment in Subsidiaries
|
2,364,586
|
|
|
264,815
|
|
|
—
|
|
|
(2,629,401
|
)
|
|
—
|
|
|||||
Intercompany Notes Receivable
|
959,185
|
|
|
118,740
|
|
|
—
|
|
|
(1,077,925
|
)
|
|
—
|
|
|||||
Other Assets
|
49,218
|
|
|
20,133
|
|
|
17,241
|
|
|
(5,469
|
)
|
|
81,123
|
|
|||||
Total Assets
|
$
|
3,464,971
|
|
|
$
|
3,044,438
|
|
|
$
|
1,731,358
|
|
|
$
|
(3,721,993
|
)
|
|
$
|
4,518,774
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
314
|
|
|
$
|
147,708
|
|
|
$
|
201,047
|
|
|
$
|
—
|
|
|
$
|
349,069
|
|
Intercompany payables, net
|
—
|
|
|
—
|
|
|
9,198
|
|
|
(9,198
|
)
|
|
—
|
|
|||||
Accrued expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued payroll-related liabilities
|
5,236
|
|
|
32,850
|
|
|
20,609
|
|
|
—
|
|
|
58,695
|
|
|||||
Sales taxes payable
|
—
|
|
|
5,694
|
|
|
25,007
|
|
|
—
|
|
|
30,701
|
|
|||||
Other accrued expenses
|
26,714
|
|
|
51,183
|
|
|
31,476
|
|
|
—
|
|
|
109,373
|
|
|||||
Contingent consideration liabilities
|
—
|
|
|
1,923
|
|
|
50,542
|
|
|
—
|
|
|
52,465
|
|
|||||
Other current liabilities
|
2,803
|
|
|
13,039
|
|
|
20,273
|
|
|
—
|
|
|
36,115
|
|
|||||
Current portion of long-term obligations
|
24,421
|
|
|
3,030
|
|
|
14,084
|
|
|
—
|
|
|
41,535
|
|
|||||
Total Current Liabilities
|
59,488
|
|
|
255,427
|
|
|
372,236
|
|
|
(9,198
|
)
|
|
677,953
|
|
|||||
Long-Term Obligations, Excluding Current Portion
|
1,016,249
|
|
|
6,554
|
|
|
241,443
|
|
|
—
|
|
|
1,264,246
|
|
|||||
Intercompany Notes Payable
|
—
|
|
|
611,274
|
|
|
466,651
|
|
|
(1,077,925
|
)
|
|
—
|
|
|||||
Deferred Income Taxes
|
—
|
|
|
110,110
|
|
|
29,181
|
|
|
(5,469
|
)
|
|
133,822
|
|
|||||
Other Noncurrent Liabilities
|
38,489
|
|
|
46,417
|
|
|
7,102
|
|
|
—
|
|
|
92,008
|
|
|||||
Stockholders’ Equity
|
2,350,745
|
|
|
2,014,656
|
|
|
614,745
|
|
|
(2,629,401
|
)
|
|
2,350,745
|
|
|||||
Total Liabilities and Stockholders’ Equity
|
$
|
3,464,971
|
|
|
$
|
3,044,438
|
|
|
$
|
1,731,358
|
|
|
$
|
(3,721,993
|
)
|
|
$
|
4,518,774
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
|
|||||||||||||||||||
|
For the Three Months Ended June 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
1,179,984
|
|
|
$
|
561,876
|
|
|
$
|
(32,728
|
)
|
|
$
|
1,709,132
|
|
Cost of goods sold
|
—
|
|
|
717,251
|
|
|
353,550
|
|
|
(32,728
|
)
|
|
1,038,073
|
|
|||||
Gross margin
|
—
|
|
|
462,733
|
|
|
208,326
|
|
|
—
|
|
|
671,059
|
|
|||||
Facility and warehouse expenses
|
—
|
|
|
93,086
|
|
|
35,420
|
|
|
—
|
|
|
128,506
|
|
|||||
Distribution expenses
|
—
|
|
|
97,846
|
|
|
48,698
|
|
|
—
|
|
|
146,544
|
|
|||||
Selling, general and administrative expenses
|
7,099
|
|
|
113,029
|
|
|
66,457
|
|
|
—
|
|
|
186,585
|
|
|||||
Restructuring and acquisition related expenses
|
—
|
|
|
3,496
|
|
|
2,405
|
|
|
—
|
|
|
5,901
|
|
|||||
Depreciation and amortization
|
59
|
|
|
20,296
|
|
|
9,572
|
|
|
—
|
|
|
29,927
|
|
|||||
Operating (loss) income
|
(7,158
|
)
|
|
134,980
|
|
|
45,774
|
|
|
—
|
|
|
173,596
|
|
|||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
12,576
|
|
|
44
|
|
|
3,008
|
|
|
—
|
|
|
15,628
|
|
|||||
Intercompany interest (income) expense, net
|
(10,866
|
)
|
|
4,051
|
|
|
6,815
|
|
|
—
|
|
|
—
|
|
|||||
Change in fair value of contingent consideration liabilities
|
—
|
|
|
(847
|
)
|
|
57
|
|
|
—
|
|
|
(790
|
)
|
|||||
Other (income) expense, net
|
(59
|
)
|
|
(1,617
|
)
|
|
769
|
|
|
—
|
|
|
(907
|
)
|
|||||
Total other expense, net
|
1,651
|
|
|
1,631
|
|
|
10,649
|
|
|
—
|
|
|
13,931
|
|
|||||
(Loss) income before (benefit) provision for income taxes
|
(8,809
|
)
|
|
133,349
|
|
|
35,125
|
|
|
—
|
|
|
159,665
|
|
|||||
(Benefit) provision for income taxes
|
(3,687
|
)
|
|
50,518
|
|
|
7,510
|
|
|
—
|
|
|
54,341
|
|
|||||
Equity in earnings of unconsolidated subsidiaries
|
—
|
|
|
15
|
|
|
(457
|
)
|
|
—
|
|
|
(442
|
)
|
|||||
Equity in earnings of subsidiaries
|
110,004
|
|
|
9,631
|
|
|
—
|
|
|
(119,635
|
)
|
|
—
|
|
|||||
Net income
|
$
|
104,882
|
|
|
$
|
92,477
|
|
|
$
|
27,158
|
|
|
$
|
(119,635
|
)
|
|
$
|
104,882
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
|
|||||||||||||||||||
|
For the Three Months Ended June 30, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
898,546
|
|
|
$
|
382,461
|
|
|
$
|
(29,259
|
)
|
|
$
|
1,251,748
|
|
Cost of goods sold
|
—
|
|
|
533,418
|
|
|
237,716
|
|
|
(29,259
|
)
|
|
741,875
|
|
|||||
Gross margin
|
—
|
|
|
365,128
|
|
|
144,745
|
|
|
—
|
|
|
509,873
|
|
|||||
Facility and warehouse expenses
|
—
|
|
|
79,257
|
|
|
23,628
|
|
|
—
|
|
|
102,885
|
|
|||||
Distribution expenses
|
—
|
|
|
74,756
|
|
|
31,827
|
|
|
—
|
|
|
106,583
|
|
|||||
Selling, general and administrative expenses
|
6,763
|
|
|
95,378
|
|
|
43,871
|
|
|
—
|
|
|
146,012
|
|
|||||
Restructuring and acquisition related expenses
|
—
|
|
|
166
|
|
|
3,514
|
|
|
—
|
|
|
3,680
|
|
|||||
Depreciation and amortization
|
62
|
|
|
13,964
|
|
|
5,309
|
|
|
—
|
|
|
19,335
|
|
|||||
Operating (loss) income
|
(6,825
|
)
|
|
101,607
|
|
|
36,596
|
|
|
—
|
|
|
131,378
|
|
|||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
10,131
|
|
|
404
|
|
|
1,957
|
|
|
—
|
|
|
12,492
|
|
|||||
Intercompany interest (income) expense, net
|
(11,730
|
)
|
|
5,722
|
|
|
6,008
|
|
|
—
|
|
|
—
|
|
|||||
Loss on debt extinguishment
|
2,795
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,795
|
|
|||||
Change in fair value of contingent consideration liabilities
|
—
|
|
|
(990
|
)
|
|
1,220
|
|
|
—
|
|
|
230
|
|
|||||
Other expense (income), net
|
76
|
|
|
(756
|
)
|
|
103
|
|
|
—
|
|
|
(577
|
)
|
|||||
Total other expense, net
|
1,272
|
|
|
4,380
|
|
|
9,288
|
|
|
—
|
|
|
14,940
|
|
|||||
(Loss) income before (benefit) provision for income taxes
|
(8,097
|
)
|
|
97,227
|
|
|
27,308
|
|
|
—
|
|
|
116,438
|
|
|||||
(Benefit) provision for income taxes
|
(3,108
|
)
|
|
37,782
|
|
|
6,042
|
|
|
—
|
|
|
40,716
|
|
|||||
Equity in earnings of subsidiaries
|
80,711
|
|
|
5,464
|
|
|
—
|
|
|
(86,175
|
)
|
|
—
|
|
|||||
Net income
|
$
|
75,722
|
|
|
$
|
64,909
|
|
|
$
|
21,266
|
|
|
$
|
(86,175
|
)
|
|
$
|
75,722
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
|
|||||||||||||||||||
|
For the Six Months Ended June 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
2,320,304
|
|
|
$
|
1,076,395
|
|
|
$
|
(61,790
|
)
|
|
$
|
3,334,909
|
|
Cost of goods sold
|
—
|
|
|
1,397,881
|
|
|
675,875
|
|
|
(61,790
|
)
|
|
2,011,966
|
|
|||||
Gross margin
|
—
|
|
|
922,423
|
|
|
400,520
|
|
|
—
|
|
|
1,322,943
|
|
|||||
Facility and warehouse expenses
|
—
|
|
|
186,186
|
|
|
68,479
|
|
|
—
|
|
|
254,665
|
|
|||||
Distribution expenses
|
—
|
|
|
192,730
|
|
|
91,143
|
|
|
—
|
|
|
283,873
|
|
|||||
Selling, general and administrative expenses
|
15,010
|
|
|
227,112
|
|
|
128,993
|
|
|
—
|
|
|
371,115
|
|
|||||
Restructuring and acquisition related expenses
|
—
|
|
|
6,484
|
|
|
2,738
|
|
|
—
|
|
|
9,222
|
|
|||||
Depreciation and amortization
|
118
|
|
|
38,964
|
|
|
17,556
|
|
|
—
|
|
|
56,638
|
|
|||||
Operating (loss) income
|
(15,128
|
)
|
|
270,947
|
|
|
91,611
|
|
|
—
|
|
|
347,430
|
|
|||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
26,245
|
|
|
115
|
|
|
5,386
|
|
|
—
|
|
|
31,746
|
|
|||||
Intercompany interest (income) expense, net
|
(23,190
|
)
|
|
10,072
|
|
|
13,118
|
|
|
—
|
|
|
—
|
|
|||||
Loss on debt extinguishment
|
324
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
324
|
|
|||||
Change in fair value of contingent consideration liabilities
|
—
|
|
|
(2,237
|
)
|
|
225
|
|
|
—
|
|
|
(2,012
|
)
|
|||||
Other (income) expense, net
|
(74
|
)
|
|
(3,378
|
)
|
|
2,449
|
|
|
—
|
|
|
(1,003
|
)
|
|||||
Total other expense, net
|
3,305
|
|
|
4,572
|
|
|
21,178
|
|
|
—
|
|
|
29,055
|
|
|||||
(Loss) income before (benefit) provision for income taxes
|
(18,433
|
)
|
|
266,375
|
|
|
70,433
|
|
|
—
|
|
|
318,375
|
|
|||||
(Benefit) provision for income taxes
|
(7,302
|
)
|
|
100,739
|
|
|
14,925
|
|
|
—
|
|
|
108,362
|
|
|||||
Equity in earnings of unconsolidated subsidiaries
|
—
|
|
|
15
|
|
|
(493
|
)
|
|
—
|
|
|
(478
|
)
|
|||||
Equity in earnings of subsidiaries
|
220,666
|
|
|
18,377
|
|
|
—
|
|
|
(239,043
|
)
|
|
—
|
|
|||||
Net income
|
$
|
209,535
|
|
|
$
|
184,028
|
|
|
$
|
55,015
|
|
|
$
|
(239,043
|
)
|
|
$
|
209,535
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
|
|||||||||||||||||||
|
For the Six Months Ended June 30, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
1,821,146
|
|
|
$
|
682,864
|
|
|
$
|
(56,265
|
)
|
|
$
|
2,447,745
|
|
Cost of goods sold
|
—
|
|
|
1,071,588
|
|
|
420,600
|
|
|
(56,265
|
)
|
|
1,435,923
|
|
|||||
Gross margin
|
—
|
|
|
749,558
|
|
|
262,264
|
|
|
—
|
|
|
1,011,822
|
|
|||||
Facility and warehouse expenses
|
—
|
|
|
160,824
|
|
|
42,307
|
|
|
—
|
|
|
203,131
|
|
|||||
Distribution expenses
|
—
|
|
|
150,514
|
|
|
59,926
|
|
|
—
|
|
|
210,440
|
|
|||||
Selling, general and administrative expenses
|
13,317
|
|
|
188,815
|
|
|
80,936
|
|
|
—
|
|
|
283,068
|
|
|||||
Restructuring and acquisition related expenses
|
—
|
|
|
339
|
|
|
4,846
|
|
|
—
|
|
|
5,185
|
|
|||||
Depreciation and amortization
|
122
|
|
|
27,554
|
|
|
9,356
|
|
|
—
|
|
|
37,032
|
|
|||||
Operating (loss) income
|
(13,439
|
)
|
|
221,512
|
|
|
64,893
|
|
|
—
|
|
|
272,966
|
|
|||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
16,254
|
|
|
540
|
|
|
4,293
|
|
|
—
|
|
|
21,087
|
|
|||||
Intercompany interest (income) expense, net
|
(21,290
|
)
|
|
11,308
|
|
|
9,982
|
|
|
—
|
|
|
—
|
|
|||||
Loss on debt extinguishment
|
2,795
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,795
|
|
|||||
Change in fair value of contingent consideration liabilities
|
—
|
|
|
(864
|
)
|
|
1,917
|
|
|
—
|
|
|
1,053
|
|
|||||
Other expense (income), net
|
127
|
|
|
(1,468
|
)
|
|
1,166
|
|
|
—
|
|
|
(175
|
)
|
|||||
Total other (income) expense, net
|
(2,114
|
)
|
|
9,516
|
|
|
17,358
|
|
|
—
|
|
|
24,760
|
|
|||||
(Loss) income before (benefit) provision for income taxes
|
(11,325
|
)
|
|
211,996
|
|
|
47,535
|
|
|
—
|
|
|
248,206
|
|
|||||
(Benefit) provision for income taxes
|
(4,332
|
)
|
|
81,652
|
|
|
10,572
|
|
|
—
|
|
|
87,892
|
|
|||||
Equity in earnings of subsidiaries
|
167,307
|
|
|
9,840
|
|
|
—
|
|
|
(177,147
|
)
|
|
—
|
|
|||||
Net income
|
$
|
160,314
|
|
|
$
|
140,184
|
|
|
$
|
36,963
|
|
|
$
|
(177,147
|
)
|
|
$
|
160,314
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
|
|||||||||||||||||||
|
For the Three Months Ended June 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
104,882
|
|
|
$
|
92,477
|
|
|
$
|
27,158
|
|
|
$
|
(119,635
|
)
|
|
$
|
104,882
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation
|
15,879
|
|
|
7,598
|
|
|
14,891
|
|
|
(22,489
|
)
|
|
15,879
|
|
|||||
Net change in unrecognized gains/losses on derivative instruments, net of tax
|
457
|
|
|
—
|
|
|
296
|
|
|
(296
|
)
|
|
457
|
|
|||||
Change in unrealized gain on pension plan, net of tax
|
(30
|
)
|
|
—
|
|
|
(30
|
)
|
|
30
|
|
|
(30
|
)
|
|||||
Total other comprehensive income
|
16,306
|
|
|
7,598
|
|
|
15,157
|
|
|
(22,755
|
)
|
|
16,306
|
|
|||||
Total comprehensive income
|
$
|
121,188
|
|
|
$
|
100,075
|
|
|
$
|
42,315
|
|
|
$
|
(142,390
|
)
|
|
$
|
121,188
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
|
|||||||||||||||||||
|
For the Three Months Ended June 30, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
75,722
|
|
|
$
|
64,909
|
|
|
$
|
21,266
|
|
|
$
|
(86,175
|
)
|
|
$
|
75,722
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation
|
(3,204
|
)
|
|
(2,046
|
)
|
|
(2,534
|
)
|
|
4,580
|
|
|
(3,204
|
)
|
|||||
Net change in unrecognized gains/losses on derivative instruments, net of tax
|
2,629
|
|
|
—
|
|
|
943
|
|
|
(943
|
)
|
|
2,629
|
|
|||||
Total other comprehensive loss
|
(575
|
)
|
|
(2,046
|
)
|
|
(1,591
|
)
|
|
3,637
|
|
|
(575
|
)
|
|||||
Total comprehensive income
|
$
|
75,147
|
|
|
$
|
62,863
|
|
|
$
|
19,675
|
|
|
$
|
(82,538
|
)
|
|
$
|
75,147
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
|
|||||||||||||||||||
|
For the Six Months Ended June 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
209,535
|
|
|
$
|
184,028
|
|
|
$
|
55,015
|
|
|
$
|
(239,043
|
)
|
|
$
|
209,535
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation
|
15,316
|
|
|
7,520
|
|
|
15,312
|
|
|
(22,832
|
)
|
|
15,316
|
|
|||||
Net change in unrecognized gains/losses on derivative instruments, net of tax
|
1,250
|
|
|
—
|
|
|
181
|
|
|
(181
|
)
|
|
1,250
|
|
|||||
Change in unrealized gain on pension plan, net of tax
|
(67
|
)
|
|
—
|
|
|
(67
|
)
|
|
67
|
|
|
(67
|
)
|
|||||
Total other comprehensive income
|
16,499
|
|
|
7,520
|
|
|
15,426
|
|
|
(22,946
|
)
|
|
16,499
|
|
|||||
Total comprehensive income
|
$
|
226,034
|
|
|
$
|
191,548
|
|
|
$
|
70,441
|
|
|
$
|
(261,989
|
)
|
|
$
|
226,034
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
|
|||||||||||||||||||
|
For the Six Months Ended June 30, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
160,314
|
|
|
$
|
140,184
|
|
|
$
|
36,963
|
|
|
$
|
(177,147
|
)
|
|
$
|
160,314
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation
|
(22,184
|
)
|
|
(9,744
|
)
|
|
(20,997
|
)
|
|
30,741
|
|
|
(22,184
|
)
|
|||||
Net change in unrecognized gains/losses on derivative instruments, net of tax
|
3,361
|
|
|
—
|
|
|
776
|
|
|
(776
|
)
|
|
3,361
|
|
|||||
Total other comprehensive loss
|
(18,823
|
)
|
|
(9,744
|
)
|
|
(20,221
|
)
|
|
29,965
|
|
|
(18,823
|
)
|
|||||
Total comprehensive income
|
$
|
141,491
|
|
|
$
|
130,440
|
|
|
$
|
16,742
|
|
|
$
|
(147,182
|
)
|
|
$
|
141,491
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Cash Flows
(In thousands)
|
|||||||||||||||||||
|
For the Six Months Ended June 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
149,099
|
|
|
$
|
213,507
|
|
|
$
|
(60,182
|
)
|
|
$
|
(150,220
|
)
|
|
$
|
152,204
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property and equipment
|
(32
|
)
|
|
(39,338
|
)
|
|
(27,961
|
)
|
|
—
|
|
|
(67,331
|
)
|
|||||
Proceeds from sales of property and equipment
|
—
|
|
|
1,020
|
|
|
1,561
|
|
|
—
|
|
|
2,581
|
|
|||||
Investments in unconsolidated subsidiaries
|
—
|
|
|
(600
|
)
|
|
(1,640
|
)
|
|
—
|
|
|
(2,240
|
)
|
|||||
Investment and intercompany note activity with subsidiaries
|
(213,812
|
)
|
|
(607
|
)
|
|
—
|
|
|
214,419
|
|
|
—
|
|
|||||
Acquisitions, net of cash acquired
|
—
|
|
|
(518,736
|
)
|
|
(116,596
|
)
|
|
—
|
|
|
(635,332
|
)
|
|||||
Net cash used in investing activities
|
(213,844
|
)
|
|
(558,261
|
)
|
|
(144,636
|
)
|
|
214,419
|
|
|
(702,322
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from exercise of stock options
|
4,207
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,207
|
|
|||||
Excess tax benefit from stock-based payments
|
9,747
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,747
|
|
|||||
Debt issuance costs
|
(3,640
|
)
|
|
—
|
|
|
(75
|
)
|
|
—
|
|
|
(3,715
|
)
|
|||||
Borrowings under revolving credit facility
|
633,000
|
|
|
—
|
|
|
527,461
|
|
|
—
|
|
|
1,160,461
|
|
|||||
Repayments under revolving credit facility
|
(625,000
|
)
|
|
—
|
|
|
(49,432
|
)
|
|
—
|
|
|
(674,432
|
)
|
|||||
Borrowings under term loans
|
11,250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,250
|
|
|||||
Repayments under term loans
|
(5,625
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,625
|
)
|
|||||
Borrowings under receivables securitization facility
|
—
|
|
|
—
|
|
|
80,000
|
|
|
—
|
|
|
80,000
|
|
|||||
Repayments of other long-term debt
|
(1,920
|
)
|
|
(1,592
|
)
|
|
(10,017
|
)
|
|
—
|
|
|
(13,529
|
)
|
|||||
Settlement of foreign currency forward contract
|
(19,959
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(19,959
|
)
|
|||||
Payments of other obligations
|
—
|
|
|
(407
|
)
|
|
(41,527
|
)
|
|
—
|
|
|
(41,934
|
)
|
|||||
Investment and intercompany note activity with parent
|
—
|
|
|
497,100
|
|
|
(282,681
|
)
|
|
(214,419
|
)
|
|
—
|
|
|||||
Dividends
|
—
|
|
|
(150,220
|
)
|
|
—
|
|
|
150,220
|
|
|
—
|
|
|||||
Net cash provided by financing activities
|
2,060
|
|
|
344,881
|
|
|
223,729
|
|
|
(64,199
|
)
|
|
506,471
|
|
|||||
Effect of exchange rate changes on cash and equivalents
|
—
|
|
|
(142
|
)
|
|
2,865
|
|
|
—
|
|
|
2,723
|
|
|||||
Net (decrease) increase in cash and equivalents
|
(62,685
|
)
|
|
(15
|
)
|
|
21,776
|
|
|
—
|
|
|
(40,924
|
)
|
|||||
Cash and equivalents, beginning of period
|
77,926
|
|
|
13,693
|
|
|
58,869
|
|
|
—
|
|
|
150,488
|
|
|||||
Cash and equivalents, end of period
|
$
|
15,241
|
|
|
$
|
13,678
|
|
|
$
|
80,645
|
|
|
$
|
—
|
|
|
$
|
109,564
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Cash Flows
(In thousands)
|
|||||||||||||||||||
|
For the Six Months Ended June 30, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
$
|
82,731
|
|
|
$
|
138,571
|
|
|
$
|
47,476
|
|
|
$
|
(59,288
|
)
|
|
$
|
209,490
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property and equipment
|
(1
|
)
|
|
(28,568
|
)
|
|
(11,582
|
)
|
|
—
|
|
|
(40,151
|
)
|
|||||
Proceeds from sales of property and equipment
|
—
|
|
|
878
|
|
|
373
|
|
|
—
|
|
|
1,251
|
|
|||||
Investment and intercompany note activity with subsidiaries
|
(352,407
|
)
|
|
(84,893
|
)
|
|
—
|
|
|
437,300
|
|
|
—
|
|
|||||
Acquisitions, net of cash acquired
|
—
|
|
|
(16,454
|
)
|
|
(292,125
|
)
|
|
—
|
|
|
(308,579
|
)
|
|||||
Net cash used in investing activities
|
(352,408
|
)
|
|
(129,037
|
)
|
|
(303,334
|
)
|
|
437,300
|
|
|
(347,479
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from exercise of stock options
|
10,604
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,604
|
|
|||||
Excess tax benefit from stock-based payments
|
10,902
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
10,902
|
|
|||||
Debt issuance costs
|
(16,438
|
)
|
|
—
|
|
|
(83
|
)
|
|
—
|
|
|
(16,521
|
)
|
|||||
Proceeds from issuance of senior notes
|
600,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
600,000
|
|
|||||
Borrowings under revolving credit facility
|
284,500
|
|
|
—
|
|
|
68,908
|
|
|
—
|
|
|
353,408
|
|
|||||
Repayments under revolving credit facility
|
(585,500
|
)
|
|
—
|
|
|
(122,560
|
)
|
|
—
|
|
|
(708,060
|
)
|
|||||
Borrowings under term loans
|
35,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,000
|
|
|||||
Repayments under term loans
|
(5,625
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,625
|
)
|
|||||
Borrowings under receivables securitization facility
|
—
|
|
|
—
|
|
|
1,500
|
|
|
—
|
|
|
1,500
|
|
|||||
Repayments under receivables securitization facility
|
—
|
|
|
—
|
|
|
(1,500
|
)
|
|
—
|
|
|
(1,500
|
)
|
|||||
Repayments of other long-term debt
|
(410
|
)
|
|
(1,530
|
)
|
|
(4,525
|
)
|
|
—
|
|
|
(6,465
|
)
|
|||||
Payments of other obligations
|
—
|
|
|
(472
|
)
|
|
(31,619
|
)
|
|
—
|
|
|
(32,091
|
)
|
|||||
Investment and intercompany note activity with parent
|
—
|
|
|
52,142
|
|
|
385,158
|
|
|
(437,300
|
)
|
|
—
|
|
|||||
Dividends
|
—
|
|
|
(59,288
|
)
|
|
—
|
|
|
59,288
|
|
|
—
|
|
|||||
Net cash provided by financing activities
|
333,033
|
|
|
(9,148
|
)
|
|
295,279
|
|
|
(378,012
|
)
|
|
241,152
|
|
|||||
Effect of exchange rate changes on cash and equivalents
|
—
|
|
|
—
|
|
|
(1,343
|
)
|
|
—
|
|
|
(1,343
|
)
|
|||||
Net increase in cash and equivalents
|
63,356
|
|
|
386
|
|
|
38,078
|
|
|
—
|
|
|
101,820
|
|
|||||
Cash and equivalents, beginning of period
|
18,396
|
|
|
18,253
|
|
|
23,121
|
|
|
—
|
|
|
59,770
|
|
|||||
Cash and equivalents, end of period
|
$
|
81,752
|
|
|
$
|
18,639
|
|
|
$
|
61,199
|
|
|
$
|
—
|
|
|
$
|
161,590
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
June 30,
|
|
June 30,
|
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Statements of Income Data:
|
|
|
|
|
|
|
|
||||
Revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of goods sold
|
60.7
|
%
|
|
59.3
|
%
|
|
60.3
|
%
|
|
58.7
|
%
|
Gross margin
|
39.3
|
%
|
|
40.7
|
%
|
|
39.7
|
%
|
|
41.3
|
%
|
Facility and warehouse expenses
|
7.5
|
%
|
|
8.2
|
%
|
|
7.6
|
%
|
|
8.3
|
%
|
Distribution expenses
|
8.6
|
%
|
|
8.5
|
%
|
|
8.5
|
%
|
|
8.6
|
%
|
Selling, general and administrative expenses
|
10.9
|
%
|
|
11.7
|
%
|
|
11.1
|
%
|
|
11.6
|
%
|
Restructuring and acquisition related expenses
|
0.3
|
%
|
|
0.3
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
Depreciation and amortization
|
1.8
|
%
|
|
1.5
|
%
|
|
1.7
|
%
|
|
1.5
|
%
|
Operating income
|
10.2
|
%
|
|
10.5
|
%
|
|
10.4
|
%
|
|
11.2
|
%
|
Other expense, net
|
0.8
|
%
|
|
1.2
|
%
|
|
0.9
|
%
|
|
1.0
|
%
|
Income before provision for income taxes
|
9.3
|
%
|
|
9.3
|
%
|
|
9.5
|
%
|
|
10.1
|
%
|
Provision for income taxes
|
3.2
|
%
|
|
3.3
|
%
|
|
3.2
|
%
|
|
3.6
|
%
|
Equity in earnings of unconsolidated subsidiaries
|
(0.0
|
)%
|
|
—
|
%
|
|
(0.0
|
)%
|
|
—
|
%
|
Net income
|
6.1
|
%
|
|
6.0
|
%
|
|
6.3
|
%
|
|
6.5
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||||||
|
June 30,
|
|
June 30,
|
||||||||||||||||||||
|
2014
|
|
% of Total Revenue
|
|
2013
|
|
% of Total Revenue
|
|
2014
|
|
% of Total Revenue
|
|
2013
|
|
% of Total Revenue
|
||||||||
Third Party Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
1,025,989
|
|
|
|
|
$
|
953,918
|
|
|
|
|
$
|
2,055,255
|
|
|
|
|
$
|
1,937,306
|
|
|
|
Europe
|
465,173
|
|
|
|
|
297,830
|
|
|
|
|
884,887
|
|
|
|
|
510,439
|
|
|
|
||||
Specialty
|
217,970
|
|
|
|
|
—
|
|
|
|
|
394,767
|
|
|
|
|
—
|
|
|
|
||||
Total third party revenue
|
$
|
1,709,132
|
|
|
|
|
$
|
1,251,748
|
|
|
|
|
$
|
3,334,909
|
|
|
|
|
$
|
2,447,745
|
|
|
|
Total Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
1,026,090
|
|
|
|
|
$
|
953,918
|
|
|
|
|
$
|
2,055,389
|
|
|
|
|
$
|
1,937,306
|
|
|
|
Europe
|
465,173
|
|
|
|
|
297,830
|
|
|
|
|
884,887
|
|
|
|
|
510,439
|
|
|
|
||||
Specialty
|
218,400
|
|
|
|
|
—
|
|
|
|
|
395,423
|
|
|
|
|
—
|
|
|
|
||||
Eliminations
|
(531
|
)
|
|
|
|
—
|
|
|
|
|
(790
|
)
|
|
|
|
—
|
|
|
|
||||
Total revenue
|
$
|
1,709,132
|
|
|
|
|
$
|
1,251,748
|
|
|
|
|
$
|
3,334,909
|
|
|
|
|
$
|
2,447,745
|
|
|
|
Segment EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
137,150
|
|
|
13.4%
|
|
$
|
118,481
|
|
|
12.4%
|
|
$
|
283,288
|
|
|
13.8%
|
|
$
|
254,548
|
|
|
13.1%
|
Europe
|
45,945
|
|
|
9.9%
|
|
37,825
|
|
|
12.7%
|
|
87,100
|
|
|
9.8%
|
|
63,489
|
|
|
12.4%
|
||||
Specialty
|
28,356
|
|
|
13.0%
|
|
—
|
|
|
n/m
|
|
46,160
|
|
|
11.7%
|
|
—
|
|
|
n/m
|
||||
Total Segment EBITDA
|
$
|
211,451
|
|
|
12.4%
|
|
$
|
156,306
|
|
|
12.5%
|
|
$
|
416,548
|
|
|
12.5%
|
|
$
|
318,037
|
|
|
13.0%
|
|
June 30, 2014
|
|
December 31, 2013
|
|
June 30, 2013
|
||||||
Cash and equivalents
|
$
|
109,564
|
|
|
$
|
150,488
|
|
|
$
|
161,590
|
|
Total debt
|
1,951,324
|
|
|
1,305,781
|
|
|
1,376,481
|
|
|||
Net debt (total debt less cash and equivalents)
|
1,841,760
|
|
|
1,155,293
|
|
|
1,214,891
|
|
|||
Current maturities
|
71,487
|
|
|
41,535
|
|
|
64,962
|
|
|||
Capacity under credit facilities
(a)
|
1,930,000
|
|
|
1,430,000
|
|
|
1,350,000
|
|
|||
Availability under credit facilities
(a)
|
1,058,337
|
|
|
1,150,603
|
|
|
1,112,359
|
|
|||
Total liquidity (cash and equivalents plus availability under credit facilities)
|
1,167,901
|
|
|
1,301,091
|
|
|
1,273,949
|
|
•
|
Senior secured credit facility maturing in May 2019, composed of $450 million in term loans (
$444.4 million
outstanding at
June 30, 2014
) and $1.85 billion in revolving credit (
$731.2 million
outstanding at
June 30, 2014
), bearing interest at variable rates (although a portion of this debt is hedged through interest rate swap contracts)
|
•
|
Senior unsecured notes totaling
$600 million
, maturing in May 2023 and bearing interest at a 4.75% fixed rate
|
•
|
Receivables securitization facility with availability up to $80 million (
$80 million
outstanding as of
June 30, 2014
) maturing in September 2015 and bearing interest at variable commercial paper rates
|
Item 3.
|
Quantitative and Qualitative Disclosures About Market Risk
|
3.1
|
Restated Certificate of Incorporation of LKQ Corporation.
|
4.1
|
Supplemental Indenture dated as of May 8, 2014 among LKQ Corporation, as Issuer, the Guarantors, and U.S. Bank National Association, as Trustee.
|
31.1
|
Certification of Chief Executive Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
Certification of Chief Financial Officer Pursuant to Rule 13a-14(a) or Rule 15d-14(a), as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
Certification of Chief Executive Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
32.2
|
Certification of Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
XBRL Instance Document
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
LKQ CORPORATION
|
|
|
|
/s/ J
OHN
S. Q
UINN
|
|
John S. Quinn
|
|
Executive Vice President and Chief Financial Officer
|
|
(As duly authorized officer and Principal Financial Officer)
|
|
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/
S
/ M
ICHAEL
S. C
LARK
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|
Michael S. Clark
|
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Vice President — Finance and Controller
(As duly authorized officer and Principal Accounting Officer)
|
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LKQ CORPORATION
|
By:
|
/
S
/ Victor M. Casini
|
|
Name: Victor M. Casini
|
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Title: Senior Vice President, General Counsel and Corporate Secretary
|
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GUARANTEEING SUBSIDIARIES:
|
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Keystone Automotive Holdings, Inc.
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Keystone Automotive Operations, Inc.
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DriverFx.com, Inc.
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||
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Arrow Speed Acquisition LLC
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||
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KAO Warehouse, Inc.
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||
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KAO Logistics, Inc.
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||
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Keystone Automotive Distributors Company LLC
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||
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A&A Auto Parts Stores, Inc.
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||
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Keystone Automotive Operations of Canada, Inc.
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By:
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/S/ JOHN S. QUINN
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Name:
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John S. Quinn
|
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Title:
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Vice President and
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|
|
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Chief Financial Officer
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LKQ CORPORATION
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||
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||
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By:
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/S/ JOHN S. QUINN
|
|
|
|
Name:
|
John S. Quinn
|
|
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Title:
|
Vice President and
|
|
|
|
Chief Financial Officer
|
|
|
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GUARANTORS:
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ACCU-PARTS LLC
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AKRON AIRPORT PROPERTIES, INC.
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AMERICAN RECYCLING INTERNATIONAL, INC.
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A-RELIABLE AUTO PARTS & WRECKERS, INC.
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ATK MOTORSPORTS, INC.
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BUDGET AUTO PARTS U-PULL-IT, INC.
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CITY AUTO PARTS OF DURHAM, INC.
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DAMRON HOLDING COMPANY, LLC
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DAP TRUCKING, LLC
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DOUBLE R AUTO SALES, INC.
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GEARHEAD ENGINES, INC.
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GREENLEAF AUTO RECYCLERS, LLC
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KAI CHINA LLC
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KAIR IL, LLC
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KEYSTONE AUTOMOTIVE INDUSTRIES, INC.
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KWIK AUTO BODY SUPPLIES, INC.
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LAKEFRONT CAPITAL HOLDINGS, INC.
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LKQ 1ST CHOICE AUTO PARTS, LLC
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LKQ 250 AUTO, INC.
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LKQ A&R AUTO PARTS, INC.
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LKQ ALL MODELS CORP.
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LKQ APEX AUTO PARTS, INC.
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LKQ ATLANTA, L.P.
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LKQ AUTO PARTS OF CENTRAL CALIFORNIA, INC.
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|
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LKQ AUTO PARTS OF MEMPHIS, INC.
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LKQ AUTO PARTS OF NORTH TEXAS, INC.
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|
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LKQ AUTO PARTS OF NORTH TEXAS, L.P.
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|
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LKQ AUTO PARTS OF ORLANDO, LLC
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LKQ AUTO PARTS OF UTAH, LLC
|
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LKQ BEST AUTOMOTIVE CORP.
|
|
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LKQ BIRMINGHAM, INC.,
|
|
|
|
each as a Guarantor
|
|
|
|
|
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|
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|
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By:
|
/S/ JOHN S. QUINN
|
|
|
|
Name:
|
John S. Quinn
|
|
|
Title:
|
Vice President and
|
|
|
|
Chief Financial Officer
|
|
|
|
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LKQ BRAD’S AUTO & TRUCK PARTS, INC.
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LKQ BROADWAY AUTO PARTS, INC.
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LKQ COPHER SELF SERVICE AUTO PARTS-BRADENTON INC.
|
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LKQ COPHER SELF SERVICE AUTO PARTS-CLEARWATER INC.
|
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LKQ COPHER SELF SERVICE AUTO PARTS-ST. PETERSBURG INC.
|
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LKQ COPHER SELF SERVICE AUTO PARTS-TAMPA INC.
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LKQ CRYSTAL RIVER, INC.
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|
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LKQ FINANCE 1 LLC
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LKQ FINANCE 2 LLC
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LKQ FOSTER AUTO PARTS SALEM, INC.
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LKQ FOSTER AUTO PARTS WESTSIDE LLC
|
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LKQ FOSTER AUTO PARTS, INC.
|
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LKQ GORHAM AUTO PARTS CORP.
|
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LKQ GREAT LAKES CORP.
|
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LKQ HEAVY TRUCK-TEXAS BEST DIESEL L.P.
|
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LKQ HOLDING CO.
|
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LKQ HUNTS POINT AUTO PARTS CORP.
|
|
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LKQ LAKENOR AUTO & TRUCK SALVAGE, INC.
|
|
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LKQ MANAGEMENT COMPANY
|
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LKQ METRO, INC.
|
|
|
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LKQ MID-AMERICA AUTO PARTS, INC.
|
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LKQ MIDWEST AUTO PARTS CORP.
|
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|
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LKQ MINNESOTA, INC.
|
|
|
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LKQ OF INDIANA, INC.
|
|
|
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LKQ OF MICHIGAN, INC.
|
|
|
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LKQ OF NEVADA, INC.
|
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LKQ OF TENNESSEE, INC.
|
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LKQ ONLINE CORP.
|
|
|
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LKQ PENN-MAR, INC.,
|
|
|
|
each as a Guarantor
|
|
|
|
|
|
|
|
|
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By:
|
/S/ JOHN S. QUINN
|
|
|
|
Name:
|
John S. Quinn
|
|
|
Title:
|
Vice President and
|
|
|
|
Chief Financial Officer
|
|
|
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LKQ PLUNKS TRUCK PARTS & EQUIPMENT - JACKSON, INC.
|
|
|
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LKQ POWERTRAIN, INC.
|
|
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LKQ PRECIOUS METALS, INC.
|
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LKQ RALEIGH AUTO PARTS CORP.
|
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LKQ ROUTE 16 USED AUTO PARTS, INC.
|
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LKQ SALISBURY, INC.
|
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LKQ SAVANNAH, INC.
|
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LKQ SELF SERVICE AUTO PARTS-HOLLAND, INC.
|
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LKQ SELF SERVICE AUTO PARTS-KALAMAZOO, INC.
|
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LKQ SELF SERVICE AUTO PARTS-MEMPHIS, LLC
|
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LKQ SELF SERVICE AUTO PARTS TULSA, INC.
|
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LKQ SMART PARTS, INC.
|
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LKQ SOUTHWICK LLC
|
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LKQ TAIWAN HOLDING COMPANY
|
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LKQ TIRE & RECYCLING, INC.
|
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LKQ TRADING COMPANY
|
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LKQ TRIPLETT ASAP, INC.
|
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LKQ U-PULL-IT AUTO DAMASCUS, INC.
|
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|
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LKQ U-PULL-IT TIGARD, INC.
|
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|
LKQ WEST MICHIGAN AUTO PARTS, INC.
|
|
|
|
MICHAEL AUTO PARTS, INCORPORATED
|
|
|
|
NORTH AMERICAN ATK CORPORATION
|
|
|
|
P.B.E. SPECIALTIES, INC.
|
|
|
|
PICK-YOUR-PART AUTO WRECKING
|
|
|
|
POTOMAC GERMAN AUTO SOUTH, INC.
|
|
|
|
POTOMAC GERMAN AUTO, INC.
|
|
|
|
PULL-N-SAVE AUTO PARTS, LLC
|
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|
|
REDDING AUTO CENTER, INC.
|
|
|
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SCRAP PROCESSORS, LLC
|
|
|
|
SPEEDWAY PULL-N-SAVE AUTO PARTS, LLC
|
|
|
|
SUPREME AUTO PARTS, INC.
|
|
|
|
U-PULL-IT, INC.
|
|
|
|
U-PULL-IT, NORTH, LLC,
|
|
|
|
each as a Guarantor
|
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/S/ JOHN S. QUINN
|
|
|
|
Name:
|
John S. Quinn
|
|
|
Title:
|
Vice President and
|
|
|
|
Chief Financial Officer
|
|
U.S. BANK NATIONAL ASSOCIATION,
|
||
|
as Trustee
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
By:
|
/S/ LINDA E. GARCIA
|
|
|
|
Name:
|
Linda E. Garcia
|
|
|
Title:
|
Vice President
|
/s/ ROBERT L. WAGMAN
|
|
Robert L. Wagman
|
|
President and Chief Executive Officer
|
|
/
S
/ JOHN S. QUINN
|
|
John S. Quinn
|
|
Executive Vice President and Chief Financial Officer
|
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/
S
/ ROBERT L. WAGMAN
|
|
Robert L. Wagman
|
|
President and Chief Executive Officer
|
(1)
|
the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m or 78o(d)); and
|
(2)
|
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/
S
/ JOHN S. QUINN
|
|
John S. Quinn
|
|
Executive Vice President and Chief Financial Officer
|