|
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
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
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)
|
|||||||
|
September 30,
|
|
December 31,
|
||||
|
2014
|
|
2013
|
||||
Assets
|
|
|
|
||||
Current Assets:
|
|
|
|
||||
Cash and equivalents
|
$
|
244,646
|
|
|
$
|
150,488
|
|
Receivables, net
|
609,434
|
|
|
458,094
|
|
||
Inventory
|
1,341,325
|
|
|
1,076,952
|
|
||
Deferred income taxes
|
73,997
|
|
|
63,938
|
|
||
Prepaid expenses and other current assets
|
76,136
|
|
|
50,345
|
|
||
Total Current Assets
|
2,345,538
|
|
|
1,799,817
|
|
||
Property and Equipment, net
|
612,292
|
|
|
546,651
|
|
||
Intangible Assets:
|
|
|
|
||||
Goodwill
|
2,257,153
|
|
|
1,937,444
|
|
||
Other intangibles, net
|
221,049
|
|
|
153,739
|
|
||
Other Assets
|
98,546
|
|
|
81,123
|
|
||
Total Assets
|
$
|
5,534,578
|
|
|
$
|
4,518,774
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
||||
Current Liabilities:
|
|
|
|
||||
Accounts payable
|
$
|
403,587
|
|
|
$
|
349,069
|
|
Accrued expenses:
|
|
|
|
||||
Accrued payroll-related liabilities
|
88,082
|
|
|
58,695
|
|
||
Sales taxes payable
|
45,098
|
|
|
30,701
|
|
||
Other accrued expenses
|
127,838
|
|
|
109,373
|
|
||
Contingent consideration liabilities
|
2,288
|
|
|
52,465
|
|
||
Other current liabilities
|
31,587
|
|
|
36,115
|
|
||
Current portion of long-term obligations
|
72,908
|
|
|
41,535
|
|
||
Total Current Liabilities
|
771,388
|
|
|
677,953
|
|
||
Long-Term Obligations, Excluding Current Portion
|
1,825,133
|
|
|
1,264,246
|
|
||
Deferred Income Taxes
|
159,270
|
|
|
133,822
|
|
||
Other Noncurrent Liabilities
|
111,093
|
|
|
92,008
|
|
||
Commitments and Contingencies
|
|
|
|
||||
Stockholders’ Equity:
|
|
|
|
||||
Common stock, $0.01 par value,1,000,000,000 shares authorized, 303,031,358 and 300,805,276 shares issued and outstanding at September 30, 2014 and December 31, 2013, respectively
|
3,030
|
|
|
3,008
|
|
||
Additional paid-in capital
|
1,044,004
|
|
|
1,006,084
|
|
||
Retained earnings
|
1,622,692
|
|
|
1,321,642
|
|
||
Accumulated other comprehensive (loss) income
|
(2,032
|
)
|
|
20,011
|
|
||
Total Stockholders’ Equity
|
2,667,694
|
|
|
2,350,745
|
|
||
Total Liabilities and Stockholders’ Equity
|
$
|
5,534,578
|
|
|
$
|
4,518,774
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidated Statements of Income
(In thousands, except per share data)
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenue
|
$
|
1,721,024
|
|
|
$
|
1,298,094
|
|
|
$
|
5,055,933
|
|
|
$
|
3,745,839
|
|
Cost of goods sold
|
1,056,613
|
|
|
780,187
|
|
|
3,068,579
|
|
|
2,216,110
|
|
||||
Gross margin
|
664,411
|
|
|
517,907
|
|
|
1,987,354
|
|
|
1,529,729
|
|
||||
Facility and warehouse expenses
|
133,330
|
|
|
108,349
|
|
|
387,995
|
|
|
311,480
|
|
||||
Distribution expenses
|
148,572
|
|
|
109,593
|
|
|
432,445
|
|
|
320,033
|
|
||||
Selling, general and administrative expenses
|
192,229
|
|
|
153,546
|
|
|
563,344
|
|
|
436,614
|
|
||||
Restructuring and acquisition related expenses
|
3,594
|
|
|
2,206
|
|
|
12,816
|
|
|
7,391
|
|
||||
Depreciation and amortization
|
30,498
|
|
|
20,818
|
|
|
87,136
|
|
|
57,850
|
|
||||
Operating income
|
156,188
|
|
|
123,395
|
|
|
503,618
|
|
|
396,361
|
|
||||
Other expense (income):
|
|
|
|
|
|
|
|
||||||||
Interest expense, net
|
16,394
|
|
|
15,200
|
|
|
48,140
|
|
|
36,287
|
|
||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
324
|
|
|
2,795
|
|
||||
Change in fair value of contingent consideration liabilities
|
12
|
|
|
712
|
|
|
(2,000
|
)
|
|
1,765
|
|
||||
Other income, net
|
(18
|
)
|
|
(1,562
|
)
|
|
(1,021
|
)
|
|
(1,737
|
)
|
||||
Total other expense, net
|
16,388
|
|
|
14,350
|
|
|
45,443
|
|
|
39,110
|
|
||||
Income before provision for income taxes
|
139,800
|
|
|
109,045
|
|
|
458,175
|
|
|
357,251
|
|
||||
Provision for income taxes
|
47,564
|
|
|
35,600
|
|
|
155,926
|
|
|
123,492
|
|
||||
Equity in earnings of unconsolidated subsidiaries
|
(721
|
)
|
|
—
|
|
|
(1,199
|
)
|
|
—
|
|
||||
Net income
|
$
|
91,515
|
|
|
$
|
73,445
|
|
|
$
|
301,050
|
|
|
$
|
233,759
|
|
Earnings per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
0.30
|
|
|
$
|
0.24
|
|
|
$
|
1.00
|
|
|
$
|
0.78
|
|
Diluted
|
$
|
0.30
|
|
|
$
|
0.24
|
|
|
$
|
0.98
|
|
|
$
|
0.77
|
|
Unaudited Condensed Consolidated Statements of Comprehensive Income
(In thousands)
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net income
|
$
|
91,515
|
|
|
$
|
73,445
|
|
|
$
|
301,050
|
|
|
$
|
233,759
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation
|
(39,329
|
)
|
|
28,514
|
|
|
(24,013
|
)
|
|
6,330
|
|
||||
Net change in unrecognized gains/losses on derivative instruments, net of tax
|
817
|
|
|
625
|
|
|
2,067
|
|
|
3,986
|
|
||||
Change in unrealized gain on pension plan, net of tax
|
(30
|
)
|
|
—
|
|
|
(97
|
)
|
|
—
|
|
||||
Total other comprehensive (loss) income
|
(38,542
|
)
|
|
29,139
|
|
|
(22,043
|
)
|
|
10,316
|
|
||||
Total comprehensive income
|
$
|
52,973
|
|
|
$
|
102,584
|
|
|
$
|
279,007
|
|
|
$
|
244,075
|
|
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 (Loss)
|
|
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
|
—
|
|
|
—
|
|
|
—
|
|
|
301,050
|
|
|
—
|
|
|
301,050
|
|
|||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(22,043
|
)
|
|
(22,043
|
)
|
|||||
Restricted stock units vested
|
975
|
|
|
10
|
|
|
(10
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Stock-based compensation expense
|
—
|
|
|
—
|
|
|
16,967
|
|
|
—
|
|
|
—
|
|
|
16,967
|
|
|||||
Exercise of stock options
|
1,251
|
|
|
12
|
|
|
6,508
|
|
|
—
|
|
|
—
|
|
|
6,520
|
|
|||||
Excess tax benefit from stock-based payments
|
—
|
|
|
—
|
|
|
14,455
|
|
|
—
|
|
|
—
|
|
|
14,455
|
|
|||||
BALANCE, September 30, 2014
|
303,031
|
|
|
$
|
3,030
|
|
|
$
|
1,044,004
|
|
|
$
|
1,622,692
|
|
|
$
|
(2,032
|
)
|
|
$
|
2,667,694
|
|
Note 1.
|
Interim Financial Statements
|
Note 2.
|
Financial Statement Information
|
|
September 30,
|
|
December 31,
|
||||
|
2014
|
|
2013
|
||||
Aftermarket and refurbished products
|
$
|
944,451
|
|
|
$
|
706,600
|
|
Salvage and remanufactured products
|
396,874
|
|
|
370,352
|
|
||
|
$
|
1,341,325
|
|
|
$
|
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
|
44,981
|
|
|
73,959
|
|
|
233,998
|
|
|
352,938
|
|
||||
Exchange rate effects
|
(6,332
|
)
|
|
(26,898
|
)
|
|
1
|
|
|
(33,229
|
)
|
||||
Balance as of September 30, 2014
|
$
|
1,397,586
|
|
|
$
|
625,568
|
|
|
$
|
233,999
|
|
|
$
|
2,257,153
|
|
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
|
Gross
Carrying
Amount
|
|
Accumulated
Amortization
|
|
Net
|
||||||||||||
Trade names and trademarks
|
$
|
165,262
|
|
|
$
|
(33,643
|
)
|
|
$
|
131,619
|
|
|
$
|
143,577
|
|
|
$
|
(27,950
|
)
|
|
$
|
115,627
|
|
Customer relationships
|
71,345
|
|
|
(21,906
|
)
|
|
49,439
|
|
|
29,583
|
|
|
(10,770
|
)
|
|
18,813
|
|
||||||
Software and other technology related assets
|
45,513
|
|
|
(8,657
|
)
|
|
36,856
|
|
|
20,384
|
|
|
(2,718
|
)
|
|
17,666
|
|
||||||
Covenants not to compete
|
6,199
|
|
|
(3,064
|
)
|
|
3,135
|
|
|
3,979
|
|
|
(2,346
|
)
|
|
1,633
|
|
||||||
|
$
|
288,319
|
|
|
$
|
(67,270
|
)
|
|
$
|
221,049
|
|
|
$
|
197,523
|
|
|
$
|
(43,784
|
)
|
|
$
|
153,739
|
|
Balance as of January 1, 2014
|
$
|
12,447
|
|
Warranty expense
|
22,890
|
|
|
Warranty claims
|
(20,514
|
)
|
|
Balance as of September 30, 2014
|
$
|
14,823
|
|
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
|
(791,652
|
)
|
|
664,897
|
|
|
31.82
|
|
|
126,755
|
|
|
32.31
|
|
|
—
|
|
|
—
|
|
|||
Exercised
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,250,620
|
)
|
|
5.21
|
|
|
—
|
|
|
—
|
|
|||
Vested
|
—
|
|
|
(975,462
|
)
|
|
17.01
|
|
|
—
|
|
|
—
|
|
|
(10,000
|
)
|
|
9.30
|
|
|||
Canceled
|
142,887
|
|
|
(89,138
|
)
|
|
20.49
|
|
|
(53,749
|
)
|
|
13.42
|
|
|
—
|
|
|
—
|
|
|||
Balance, September 30, 2014
|
13,316,675
|
|
|
2,158,510
|
|
|
$
|
20.98
|
|
|
5,654,717
|
|
|
$
|
7.95
|
|
|
10,000
|
|
|
$
|
9.30
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
RSUs
|
$
|
4,434
|
|
|
$
|
4,559
|
|
|
$
|
14,625
|
|
|
$
|
12,674
|
|
Stock options
|
703
|
|
|
1,124
|
|
|
2,203
|
|
|
3,457
|
|
||||
Restricted stock
|
47
|
|
|
47
|
|
|
139
|
|
|
161
|
|
||||
Total stock-based compensation expense
|
$
|
5,184
|
|
|
$
|
5,730
|
|
|
$
|
16,967
|
|
|
$
|
16,292
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Cost of goods sold
|
$
|
105
|
|
|
$
|
98
|
|
|
$
|
308
|
|
|
$
|
294
|
|
Facility and warehouse expenses
|
527
|
|
|
687
|
|
|
1,672
|
|
|
2,058
|
|
||||
Selling, general and administrative expenses
|
4,552
|
|
|
4,945
|
|
|
14,987
|
|
|
13,940
|
|
||||
|
5,184
|
|
|
5,730
|
|
|
16,967
|
|
|
16,292
|
|
||||
Income tax benefit
|
(1,996
|
)
|
|
(2,235
|
)
|
|
(6,532
|
)
|
|
(6,354
|
)
|
||||
Total stock-based compensation expense, net of tax
|
$
|
3,188
|
|
|
$
|
3,495
|
|
|
$
|
10,435
|
|
|
$
|
9,938
|
|
|
RSUs
|
|
Stock
Options
|
|
Total
|
||||||
Remainder of 2014
|
$
|
4,292
|
|
|
$
|
724
|
|
|
$
|
5,016
|
|
2015
|
13,459
|
|
|
396
|
|
|
13,855
|
|
|||
2016
|
8,433
|
|
|
331
|
|
|
8,764
|
|
|||
2017
|
5,049
|
|
|
9
|
|
|
5,058
|
|
|||
2018
|
2,553
|
|
|
—
|
|
|
2,553
|
|
|||
2019
|
110
|
|
|
—
|
|
|
110
|
|
|||
Total unrecognized compensation expense
|
$
|
33,896
|
|
|
$
|
1,460
|
|
|
$
|
35,356
|
|
Note 4.
|
Long-Term Obligations
|
|
September 30,
|
|
December 31,
|
||||
|
2014
|
|
2013
|
||||
Senior secured credit agreement:
|
|
|
|
||||
Term loans payable
|
$
|
438,750
|
|
|
$
|
438,750
|
|
Revolving credit facility
|
693,299
|
|
|
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%
|
53,994
|
|
|
15,730
|
|
||
Other long-term debt at weighted average interest rates of 2.9% and 3.5%, respectively
|
31,998
|
|
|
17,497
|
|
||
|
1,898,041
|
|
|
1,305,781
|
|
||
Less current maturities
|
(72,908
|
)
|
|
(41,535
|
)
|
||
|
$
|
1,825,133
|
|
|
$
|
1,264,246
|
|
Note 5.
|
Derivative Instruments and Hedging Activities
|
|
|
Notional Amount
|
|
Fair Value at September 30, 2014 (USD)
|
|
Fair Value at December 31, 2013 (USD)
|
||||||||||||||
|
|
September 30, 2014
|
|
December 31, 2013
|
|
Other Noncurrent Liabilities
|
|
Other Accrued Expenses
|
|
Other Noncurrent Liabilities
|
||||||||||
Interest rate swap agreements
|
|
|
|
|
|
|
||||||||||||||
USD denominated
|
|
$
|
420,000
|
|
|
$
|
420,000
|
|
|
$
|
5,128
|
|
|
$
|
—
|
|
|
$
|
8,099
|
|
GBP denominated
|
|
£
|
50,000
|
|
|
£
|
50,000
|
|
|
396
|
|
|
—
|
|
|
345
|
|
|||
CAD denominated
|
|
C$
|
25,000
|
|
|
C$
|
25,000
|
|
|
32
|
|
|
—
|
|
|
26
|
|
|||
Foreign currency forward contracts
|
|
|
|
|
|
|
||||||||||||||
EUR denominated
|
|
€
|
—
|
|
|
€
|
149,976
|
|
|
—
|
|
|
11,632
|
|
|
—
|
|
|||
GBP denominated
|
|
£
|
—
|
|
|
£
|
70,000
|
|
|
—
|
|
|
10,186
|
|
|
—
|
|
|||
Total cash flow hedges
|
|
$
|
5,556
|
|
|
$
|
21,818
|
|
|
$
|
8,470
|
|
Note 6.
|
Fair Value Measurements
|
|
Balance as of September 30, 2014
|
|
Fair Value Measurements as of September 30, 2014
|
||||||||||||
Level 1
|
|
Level 2
|
|
Level 3
|
|||||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Cash surrender value of life insurance policies
|
$
|
26,438
|
|
|
$
|
—
|
|
|
$
|
26,438
|
|
|
$
|
—
|
|
Total Assets
|
$
|
26,438
|
|
|
$
|
—
|
|
|
$
|
26,438
|
|
|
$
|
—
|
|
Liabilities:
|
|
|
|
|
|
|
|
||||||||
Contingent consideration liabilities
|
$
|
7,301
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,301
|
|
Deferred compensation liabilities
|
25,834
|
|
|
—
|
|
|
25,834
|
|
|
—
|
|
||||
Interest rate swaps
|
5,556
|
|
|
—
|
|
|
5,556
|
|
|
—
|
|
||||
Total Liabilities
|
$
|
38,691
|
|
|
$
|
—
|
|
|
$
|
31,390
|
|
|
$
|
7,301
|
|
|
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 policies
|
$
|
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
|
|
|
September 30,
|
|
December 31,
|
||
|
2014
|
|
2013
|
||
Unobservable Input
|
(Weighted Average)
|
||||
Probability of achieving payout targets
|
78.7
|
%
|
|
70.6
|
%
|
Discount rate
|
7.5
|
%
|
|
6.5
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Beginning Balance
|
$
|
8,762
|
|
|
$
|
49,473
|
|
|
$
|
55,653
|
|
|
$
|
90,009
|
|
Contingent consideration liabilities recorded for business acquisitions
|
(1,203
|
)
|
|
1,204
|
|
|
5,854
|
|
|
3,854
|
|
||||
Payments
|
—
|
|
|
—
|
|
|
(52,305
|
)
|
|
(38,349
|
)
|
||||
Increase (decrease) in fair value included in earnings
|
12
|
|
|
712
|
|
|
(2,000
|
)
|
|
1,765
|
|
||||
Exchange rate effects
|
(270
|
)
|
|
3,096
|
|
|
99
|
|
|
(2,794
|
)
|
||||
Ending Balance
|
$
|
7,301
|
|
|
$
|
54,485
|
|
|
$
|
7,301
|
|
|
$
|
54,485
|
|
Note 7.
|
Commitments and Contingencies
|
Three months ending December 31, 2014
|
$
|
35,353
|
|
Years ending December 31:
|
|
||
2015
|
134,572
|
|
|
2016
|
114,205
|
|
|
2017
|
95,568
|
|
|
2018
|
78,838
|
|
|
2019
|
63,638
|
|
|
Thereafter
|
251,142
|
|
|
Future Minimum Lease Payments
|
$
|
773,316
|
|
Note 8.
|
Business Combinations
|
|
Nine Months Ended
|
|
Year Ended
|
||||||||||||||||||||
|
September 30, 2014
|
|
December 31, 2013
|
||||||||||||||||||||
|
Keystone Specialty
|
|
Other Acquisitions
|
|
Total
|
|
Sator
|
|
Other Acquisitions
|
|
Total
|
||||||||||||
Receivables
|
$
|
48,473
|
|
|
$
|
57,191
|
|
|
$
|
105,664
|
|
|
$
|
61,639
|
|
|
$
|
38,685
|
|
|
$
|
100,324
|
|
Receivable reserves
|
(4,403
|
)
|
|
(2,817
|
)
|
|
(7,220
|
)
|
|
(8,563
|
)
|
|
(3,246
|
)
|
|
(11,809
|
)
|
||||||
Inventory
|
151,013
|
|
|
79,260
|
|
|
230,273
|
|
|
71,784
|
|
|
26,455
|
|
|
98,239
|
|
||||||
Income taxes receivable
|
13,972
|
|
|
—
|
|
|
13,972
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Prepaid expenses and other current assets
|
8,339
|
|
|
3,266
|
|
|
11,605
|
|
|
7,184
|
|
|
1,933
|
|
|
9,117
|
|
||||||
Property and equipment
|
38,080
|
|
|
16,389
|
|
|
54,469
|
|
|
19,484
|
|
|
14,015
|
|
|
33,499
|
|
||||||
Goodwill
|
233,998
|
|
|
118,940
|
|
|
352,938
|
|
|
142,721
|
|
|
92,726
|
|
|
235,447
|
|
||||||
Other intangibles
|
70,830
|
|
|
25,897
|
|
|
96,727
|
|
|
45,293
|
|
|
12,353
|
|
|
57,646
|
|
||||||
Other assets
|
7,805
|
|
|
5,623
|
|
|
13,428
|
|
|
2,049
|
|
|
1,251
|
|
|
3,300
|
|
||||||
Deferred income taxes
|
(17,418
|
)
|
|
429
|
|
|
(16,989
|
)
|
|
(14,100
|
)
|
|
(564
|
)
|
|
(14,664
|
)
|
||||||
Current liabilities assumed
|
(65,439
|
)
|
|
(34,880
|
)
|
|
(100,319
|
)
|
|
(49,593
|
)
|
|
(36,799
|
)
|
|
(86,392
|
)
|
||||||
Debt assumed
|
—
|
|
|
(26,425
|
)
|
|
(26,425
|
)
|
|
—
|
|
|
(664
|
)
|
|
(664
|
)
|
||||||
Other noncurrent liabilities assumed
|
(14,147
|
)
|
|
(9,282
|
)
|
|
(23,429
|
)
|
|
(5,074
|
)
|
|
—
|
|
|
(5,074
|
)
|
||||||
Contingent consideration liabilities
|
—
|
|
|
(5,854
|
)
|
|
(5,854
|
)
|
|
—
|
|
|
(3,854
|
)
|
|
(3,854
|
)
|
||||||
Other purchase price obligations
|
(12,553
|
)
|
|
(313
|
)
|
|
(12,866
|
)
|
|
—
|
|
|
(214
|
)
|
|
(214
|
)
|
||||||
Notes issued
|
(31,500
|
)
|
|
(11,842
|
)
|
|
(43,342
|
)
|
|
—
|
|
|
(7,482
|
)
|
|
(7,482
|
)
|
||||||
Settlement of pre-existing balances
|
—
|
|
|
(4,922
|
)
|
|
(4,922
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Cash used in acquisitions, net of cash acquired
|
$
|
427,050
|
|
|
$
|
210,660
|
|
|
$
|
637,710
|
|
|
$
|
272,824
|
|
|
$
|
134,595
|
|
|
$
|
407,419
|
|
|
|||||||||||||||
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenue, as reported
|
$
|
1,721,024
|
|
|
$
|
1,298,094
|
|
|
$
|
5,055,933
|
|
|
$
|
3,745,839
|
|
Revenue of purchased businesses for the period prior to acquisition:
|
|
|
|
|
|
|
|
||||||||
Keystone Specialty
|
—
|
|
|
177,324
|
|
|
3,443
|
|
|
540,826
|
|
||||
Sator
|
—
|
|
|
—
|
|
|
—
|
|
|
126,309
|
|
||||
Other acquisitions
|
4,815
|
|
|
101,971
|
|
|
116,326
|
|
|
371,312
|
|
||||
Pro forma revenue
|
$
|
1,725,839
|
|
|
$
|
1,577,389
|
|
|
$
|
5,175,702
|
|
|
$
|
4,784,286
|
|
|
|
|
|
|
|
|
|
||||||||
Net income, as reported
|
$
|
91,515
|
|
|
$
|
73,445
|
|
|
$
|
301,050
|
|
|
$
|
233,759
|
|
Net income of purchased businesses for the period prior to acquisition, including pro forma purchase accounting adjustments:
|
|
|
|
|
|
|
|
||||||||
Keystone Specialty
|
180
|
|
|
7,142
|
|
|
514
|
|
|
24,769
|
|
||||
Sator
|
—
|
|
|
—
|
|
|
—
|
|
|
5,712
|
|
||||
Other acquisitions
|
3,623
|
|
|
5,059
|
|
|
8,053
|
|
|
11,505
|
|
||||
Pro forma net income
|
$
|
95,318
|
|
|
$
|
85,646
|
|
|
$
|
309,617
|
|
|
$
|
275,745
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share-basic, as reported
|
$
|
0.30
|
|
|
$
|
0.24
|
|
|
$
|
1.00
|
|
|
$
|
0.78
|
|
Effect of purchased businesses for the period prior to acquisition:
|
|
|
|
|
|
|
|
||||||||
Keystone Specialty
|
0.00
|
|
|
0.02
|
|
|
0.00
|
|
|
0.08
|
|
||||
Sator
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
||||
Other acquisitions
|
0.01
|
|
|
0.02
|
|
|
0.03
|
|
|
0.04
|
|
||||
Pro forma earnings per share-basic
(a)
|
$
|
0.31
|
|
|
$
|
0.29
|
|
|
$
|
1.03
|
|
|
$
|
0.92
|
|
|
|
|
|
|
|
|
|
||||||||
Earnings per share-diluted, as reported
|
$
|
0.30
|
|
|
$
|
0.24
|
|
|
$
|
0.98
|
|
|
$
|
0.77
|
|
Effect of purchased businesses for the period prior to acquisition:
|
|
|
|
|
|
|
|
||||||||
Keystone Specialty
|
0.00
|
|
|
0.02
|
|
|
0.00
|
|
|
0.08
|
|
||||
Sator
|
—
|
|
|
—
|
|
|
—
|
|
|
0.02
|
|
||||
Other acquisitions
|
0.01
|
|
|
0.02
|
|
|
0.03
|
|
|
0.04
|
|
||||
Pro forma earnings per share-diluted
(a)
|
$
|
0.31
|
|
|
$
|
0.28
|
|
|
$
|
1.01
|
|
|
$
|
0.91
|
|
Note 9.
|
Restructuring and Acquisition Related Expenses
|
Note 10.
|
Earnings Per Share
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Net Income
|
$
|
91,515
|
|
|
$
|
73,445
|
|
|
$
|
301,050
|
|
|
$
|
233,759
|
|
Denominator for basic earnings per share—Weighted-average shares outstanding
|
302,724
|
|
|
300,223
|
|
|
302,058
|
|
|
299,213
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
||||||||
RSUs
|
658
|
|
|
883
|
|
|
804
|
|
|
775
|
|
||||
Stock options
|
2,817
|
|
|
3,564
|
|
|
2,988
|
|
|
3,765
|
|
||||
Restricted stock
|
7
|
|
|
15
|
|
|
7
|
|
|
18
|
|
||||
Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding
|
306,206
|
|
|
304,685
|
|
|
305,857
|
|
|
303,771
|
|
||||
Earnings per share, basic
|
$
|
0.30
|
|
|
$
|
0.24
|
|
|
$
|
1.00
|
|
|
$
|
0.78
|
|
Earnings per share, diluted
|
$
|
0.30
|
|
|
$
|
0.24
|
|
|
$
|
0.98
|
|
|
$
|
0.77
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Antidilutive securities:
|
|
|
|
|
|
|
|
||||
RSUs
|
389
|
|
|
—
|
|
|
265
|
|
|
—
|
|
Stock Options
|
115
|
|
|
—
|
|
|
120
|
|
|
—
|
|
Note 11.
|
Income Taxes
|
Note 12.
|
Accumulated Other Comprehensive Income (Loss)
|
|
|
Three Months Ended
|
|
Three Months Ended
|
|
||||||||||||||||||||||||
|
|
September 30, 2014
|
|
September 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
|
|
$
|
40,222
|
|
|
$
|
(4,346
|
)
|
|
$
|
634
|
|
|
$
|
36,510
|
|
|
$
|
(11,334
|
)
|
|
$
|
(6,730
|
)
|
|
$
|
(18,064
|
)
|
|
Pretax income (loss)
|
|
(39,329
|
)
|
|
(186
|
)
|
|
—
|
|
|
(39,515
|
)
|
|
28,514
|
|
|
(15,315
|
)
|
|
13,199
|
|
|
|||||||
Income tax effect
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
(7
|
)
|
|
—
|
|
|
5,647
|
|
|
5,647
|
|
|
|||||||
Reclassification of unrealized loss (gain)
|
|
—
|
|
|
1,554
|
|
|
(39
|
)
|
|
1,515
|
|
|
—
|
|
|
15,956
|
|
|
15,956
|
|
|
|||||||
Reclassification of deferred income taxes
|
|
—
|
|
|
(544
|
)
|
|
9
|
|
|
(535
|
)
|
|
—
|
|
|
(5,849
|
)
|
|
(5,849
|
)
|
|
|||||||
Hedge ineffectiveness
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
293
|
|
|
293
|
|
|
|||||||
Income tax effect
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(107
|
)
|
|
(107
|
)
|
|
|||||||
Ending balance
|
|
$
|
893
|
|
|
$
|
(3,529
|
)
|
|
$
|
604
|
|
|
$
|
(2,032
|
)
|
|
$
|
17,180
|
|
|
$
|
(6,105
|
)
|
|
$
|
11,075
|
|
|
|
|
Nine Months Ended
|
|
Nine Months Ended
|
|
||||||||||||||||||||||||
|
|
September 30, 2014
|
|
September 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)
|
|
(24,013
|
)
|
|
(362
|
)
|
|
—
|
|
|
(24,375
|
)
|
|
6,330
|
|
|
(14,170
|
)
|
|
(7,840
|
)
|
|
|||||||
Income tax effect
|
|
—
|
|
|
39
|
|
|
—
|
|
|
39
|
|
|
—
|
|
|
5,305
|
|
|
5,305
|
|
|
|||||||
Reclassification of unrealized loss (gain)
|
|
—
|
|
|
3,647
|
|
|
(129
|
)
|
|
3,518
|
|
|
—
|
|
|
19,771
|
|
|
19,771
|
|
|
|||||||
Reclassification of deferred income taxes
|
|
—
|
|
|
(1,257
|
)
|
|
32
|
|
|
(1,225
|
)
|
|
—
|
|
|
(7,211
|
)
|
|
(7,211
|
)
|
|
|||||||
Hedge ineffectiveness
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
460
|
|
|
460
|
|
|
|||||||
Income tax effect
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(169
|
)
|
|
(169
|
)
|
|
|||||||
Ending balance
|
|
$
|
893
|
|
|
$
|
(3,529
|
)
|
|
$
|
604
|
|
|
$
|
(2,032
|
)
|
|
$
|
17,180
|
|
|
$
|
(6,105
|
)
|
|
$
|
11,075
|
|
|
Note 13.
|
Segment and Geographic Information
|
|
North America
|
|
Europe
|
|
Specialty
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Three Months Ended September 30, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third Party
|
$
|
1,024,835
|
|
|
$
|
495,776
|
|
|
$
|
200,413
|
|
|
$
|
—
|
|
|
$
|
1,721,024
|
|
Intersegment
|
132
|
|
|
—
|
|
|
594
|
|
|
(726
|
)
|
|
—
|
|
|||||
Total segment revenue
|
$
|
1,024,967
|
|
|
$
|
495,776
|
|
|
$
|
201,007
|
|
|
$
|
(726
|
)
|
|
$
|
1,721,024
|
|
Segment EBITDA
|
$
|
131,851
|
|
|
$
|
41,726
|
|
|
$
|
17,977
|
|
|
$
|
—
|
|
|
$
|
191,554
|
|
Depreciation and amortization
|
18,029
|
|
|
9,411
|
|
|
4,314
|
|
|
—
|
|
|
31,754
|
|
|||||
Three Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third Party
|
$
|
928,307
|
|
|
$
|
369,787
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,298,094
|
|
Intersegment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total segment revenue
|
$
|
928,307
|
|
|
$
|
369,787
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
1,298,094
|
|
Segment EBITDA
|
$
|
108,863
|
|
|
$
|
40,457
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
149,320
|
|
Depreciation and amortization
|
16,417
|
|
|
5,740
|
|
|
—
|
|
|
—
|
|
|
22,157
|
|
|
North America
|
|
Europe
|
|
Specialty
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Nine Months Ended September 30, 2014
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third Party
|
$
|
3,080,090
|
|
|
$
|
1,380,663
|
|
|
$
|
595,180
|
|
|
$
|
—
|
|
|
$
|
5,055,933
|
|
Intersegment
|
266
|
|
|
—
|
|
|
1,250
|
|
|
(1,516
|
)
|
|
—
|
|
|||||
Total segment revenue
|
$
|
3,080,356
|
|
|
$
|
1,380,663
|
|
|
$
|
596,430
|
|
|
$
|
(1,516
|
)
|
|
$
|
5,055,933
|
|
Segment EBITDA
|
$
|
415,139
|
|
|
$
|
128,826
|
|
|
$
|
64,137
|
|
|
|
|
|
$
|
608,102
|
|
|
Depreciation and amortization
|
52,682
|
|
|
24,868
|
|
|
13,097
|
|
|
—
|
|
|
90,647
|
|
|||||
Nine Months Ended September 30, 2013
|
|
|
|
|
|
|
|
|
|
||||||||||
Revenue:
|
|
|
|
|
|
|
|
|
|
||||||||||
Third Party
|
$
|
2,865,613
|
|
|
$
|
880,226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,745,839
|
|
Intersegment
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Total segment revenue
|
$
|
2,865,613
|
|
|
$
|
880,226
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
3,745,839
|
|
Segment EBITDA
|
$
|
363,411
|
|
|
$
|
103,946
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
467,357
|
|
Depreciation and amortization
|
48,555
|
|
|
13,313
|
|
|
—
|
|
|
—
|
|
|
61,868
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Segment EBITDA
|
$
|
191,554
|
|
|
$
|
149,320
|
|
|
$
|
608,102
|
|
|
$
|
467,357
|
|
Deduct:
|
|
|
|
|
|
|
|
||||||||
Restructuring and acquisition related expenses
(1)
|
3,594
|
|
|
2,206
|
|
|
12,816
|
|
|
7,391
|
|
||||
Change in fair value of contingent consideration liabilities
(2)
|
12
|
|
|
712
|
|
|
(2,000
|
)
|
|
1,765
|
|
||||
Add:
|
|
|
|
|
|
|
|
||||||||
Equity in earnings of unconsolidated subsidiaries
|
(721
|
)
|
|
—
|
|
|
(1,199
|
)
|
|
—
|
|
||||
EBITDA
|
187,227
|
|
|
146,402
|
|
|
596,087
|
|
|
458,201
|
|
||||
Depreciation and amortization
|
31,754
|
|
|
22,157
|
|
|
90,647
|
|
|
61,868
|
|
||||
Interest expense, net
|
16,394
|
|
|
15,200
|
|
|
48,140
|
|
|
36,287
|
|
||||
Loss on debt extinguishment
|
—
|
|
|
—
|
|
|
324
|
|
|
2,795
|
|
||||
Provision for income taxes
|
47,564
|
|
|
35,600
|
|
|
155,926
|
|
|
123,492
|
|
||||
Net income
|
$
|
91,515
|
|
|
$
|
73,445
|
|
|
$
|
301,050
|
|
|
$
|
233,759
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Capital Expenditures
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
20,986
|
|
|
$
|
14,960
|
|
|
$
|
61,262
|
|
|
$
|
48,662
|
|
Europe
|
8,652
|
|
|
6,015
|
|
|
32,927
|
|
|
12,464
|
|
||||
Specialty
|
3,222
|
|
|
—
|
|
|
6,002
|
|
|
—
|
|
||||
|
$
|
32,860
|
|
|
$
|
20,975
|
|
|
$
|
100,191
|
|
|
$
|
61,126
|
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
Receivables, net
|
|
|
|
||||
North America
|
$
|
318,575
|
|
|
$
|
277,395
|
|
Europe
|
235,791
|
|
|
180,699
|
|
||
Specialty
|
55,068
|
|
|
—
|
|
||
Total receivables, net
|
609,434
|
|
|
458,094
|
|
||
Inventory
|
|
|
|
||||
North America
|
787,884
|
|
|
748,167
|
|
||
Europe
|
389,941
|
|
|
328,785
|
|
||
Specialty
|
163,500
|
|
|
—
|
|
||
Total inventory
|
1,341,325
|
|
|
1,076,952
|
|
||
Property and Equipment, net
|
|
|
|
||||
North America
|
449,824
|
|
|
447,528
|
|
||
Europe
|
123,211
|
|
|
99,123
|
|
||
Specialty
|
39,257
|
|
|
—
|
|
||
Total property and equipment, net
|
612,292
|
|
|
546,651
|
|
||
Other unallocated assets
|
2,971,527
|
|
|
2,437,077
|
|
||
Total assets
|
$
|
5,534,578
|
|
|
$
|
4,518,774
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Revenue
|
|
|
|
|
|
|
|
||||||||
United States
|
$
|
1,126,468
|
|
|
$
|
868,052
|
|
|
$
|
3,369,636
|
|
|
$
|
2,672,545
|
|
United Kingdom
|
349,012
|
|
|
266,384
|
|
|
1,003,889
|
|
|
708,089
|
|
||||
Other countries
|
245,544
|
|
|
163,658
|
|
|
682,408
|
|
|
365,205
|
|
||||
|
$
|
1,721,024
|
|
|
$
|
1,298,094
|
|
|
$
|
5,055,933
|
|
|
$
|
3,745,839
|
|
|
September 30,
2014 |
|
December 31,
2013 |
||||
Long-lived Assets
|
|
|
|
||||
United States
|
$
|
456,556
|
|
|
$
|
418,869
|
|
United Kingdom
|
92,365
|
|
|
77,827
|
|
||
Other countries
|
63,371
|
|
|
49,955
|
|
||
|
$
|
612,292
|
|
|
$
|
546,651
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||||||
Aftermarket, other new and refurbished products
|
$
|
1,171,706
|
|
|
$
|
793,925
|
|
|
$
|
3,445,376
|
|
|
$
|
2,199,009
|
|
Recycled, remanufactured and related products and services
|
371,632
|
|
|
349,411
|
|
|
1,108,376
|
|
|
1,060,681
|
|
||||
Other
|
177,686
|
|
|
154,758
|
|
|
502,181
|
|
|
486,149
|
|
||||
|
$
|
1,721,024
|
|
|
$
|
1,298,094
|
|
|
$
|
5,055,933
|
|
|
$
|
3,745,839
|
|
Note 14.
|
Condensed Consolidating Financial Information
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Balance Sheets
(In thousands)
|
|||||||||||||||||||
|
September 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and equivalents
|
$
|
145,431
|
|
|
$
|
26,855
|
|
|
$
|
72,360
|
|
|
$
|
—
|
|
|
$
|
244,646
|
|
Receivables, net
|
77
|
|
|
223,767
|
|
|
385,590
|
|
|
—
|
|
|
609,434
|
|
|||||
Intercompany receivables, net
|
6,331
|
|
|
—
|
|
|
13,829
|
|
|
(20,160
|
)
|
|
—
|
|
|||||
Inventory
|
—
|
|
|
885,665
|
|
|
455,660
|
|
|
—
|
|
|
1,341,325
|
|
|||||
Deferred income taxes
|
3,071
|
|
|
67,560
|
|
|
3,366
|
|
|
—
|
|
|
73,997
|
|
|||||
Prepaid expenses and other current assets
|
10,284
|
|
|
33,661
|
|
|
32,191
|
|
|
—
|
|
|
76,136
|
|
|||||
Total Current Assets
|
165,194
|
|
|
1,237,508
|
|
|
962,996
|
|
|
(20,160
|
)
|
|
2,345,538
|
|
|||||
Property and Equipment, net
|
534
|
|
|
457,975
|
|
|
153,783
|
|
|
—
|
|
|
612,292
|
|
|||||
Intangible Assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Goodwill
|
—
|
|
|
1,518,384
|
|
|
738,769
|
|
|
—
|
|
|
2,257,153
|
|
|||||
Other intangibles, net
|
—
|
|
|
126,522
|
|
|
94,527
|
|
|
—
|
|
|
221,049
|
|
|||||
Investment in Subsidiaries
|
2,958,048
|
|
|
285,996
|
|
|
—
|
|
|
(3,244,044
|
)
|
|
—
|
|
|||||
Intercompany Notes Receivable
|
619,070
|
|
|
32,207
|
|
|
—
|
|
|
(651,277
|
)
|
|
—
|
|
|||||
Other Assets
|
50,433
|
|
|
27,235
|
|
|
25,963
|
|
|
(5,085
|
)
|
|
98,546
|
|
|||||
Total Assets
|
$
|
3,793,279
|
|
|
$
|
3,685,827
|
|
|
$
|
1,976,038
|
|
|
$
|
(3,920,566
|
)
|
|
$
|
5,534,578
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current Liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
501
|
|
|
$
|
180,877
|
|
|
$
|
222,209
|
|
|
$
|
—
|
|
|
$
|
403,587
|
|
Intercompany payables, net
|
—
|
|
|
13,829
|
|
|
6,331
|
|
|
(20,160
|
)
|
|
—
|
|
|||||
Accrued expenses:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accrued payroll-related liabilities
|
7,054
|
|
|
54,794
|
|
|
26,234
|
|
|
—
|
|
|
88,082
|
|
|||||
Sales taxes payable
|
—
|
|
|
6,545
|
|
|
38,553
|
|
|
—
|
|
|
45,098
|
|
|||||
Other accrued expenses
|
11,434
|
|
|
76,371
|
|
|
40,033
|
|
|
—
|
|
|
127,838
|
|
|||||
Contingent consideration liabilities
|
—
|
|
|
1,727
|
|
|
561
|
|
|
—
|
|
|
2,288
|
|
|||||
Other current liabilities
|
1,127
|
|
|
12,816
|
|
|
17,644
|
|
|
—
|
|
|
31,587
|
|
|||||
Current portion of long-term obligations
|
55,000
|
|
|
4,452
|
|
|
13,456
|
|
|
—
|
|
|
72,908
|
|
|||||
Total Current Liabilities
|
75,116
|
|
|
351,411
|
|
|
365,021
|
|
|
(20,160
|
)
|
|
771,388
|
|
|||||
Long-Term Obligations, Excluding Current Portion
|
1,016,429
|
|
|
6,423
|
|
|
802,281
|
|
|
—
|
|
|
1,825,133
|
|
|||||
Intercompany Notes Payable
|
—
|
|
|
558,691
|
|
|
92,586
|
|
|
(651,277
|
)
|
|
—
|
|
|||||
Deferred Income Taxes
|
—
|
|
|
137,785
|
|
|
26,570
|
|
|
(5,085
|
)
|
|
159,270
|
|
|||||
Other Noncurrent Liabilities
|
34,040
|
|
|
63,314
|
|
|
13,739
|
|
|
—
|
|
|
111,093
|
|
|||||
Stockholders’ Equity
|
2,667,694
|
|
|
2,568,203
|
|
|
675,841
|
|
|
(3,244,044
|
)
|
|
2,667,694
|
|
|||||
Total Liabilities and Stockholders’ Equity
|
$
|
3,793,279
|
|
|
$
|
3,685,827
|
|
|
$
|
1,976,038
|
|
|
$
|
(3,920,566
|
)
|
|
$
|
5,534,578
|
|
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 September 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
1,165,794
|
|
|
$
|
588,852
|
|
|
$
|
(33,622
|
)
|
|
$
|
1,721,024
|
|
Cost of goods sold
|
—
|
|
|
709,985
|
|
|
380,250
|
|
|
(33,622
|
)
|
|
1,056,613
|
|
|||||
Gross margin
|
—
|
|
|
455,809
|
|
|
208,602
|
|
|
—
|
|
|
664,411
|
|
|||||
Facility and warehouse expenses
|
—
|
|
|
95,619
|
|
|
37,711
|
|
|
—
|
|
|
133,330
|
|
|||||
Distribution expenses
|
—
|
|
|
98,457
|
|
|
50,115
|
|
|
—
|
|
|
148,572
|
|
|||||
Selling, general and administrative expenses
|
5,178
|
|
|
114,926
|
|
|
72,125
|
|
|
—
|
|
|
192,229
|
|
|||||
Restructuring and acquisition related expenses
|
—
|
|
|
882
|
|
|
2,712
|
|
|
—
|
|
|
3,594
|
|
|||||
Depreciation and amortization
|
50
|
|
|
19,592
|
|
|
10,856
|
|
|
—
|
|
|
30,498
|
|
|||||
Operating (loss) income
|
(5,228
|
)
|
|
126,333
|
|
|
35,083
|
|
|
—
|
|
|
156,188
|
|
|||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
12,338
|
|
|
71
|
|
|
3,985
|
|
|
—
|
|
|
16,394
|
|
|||||
Intercompany interest (income) expense, net
|
(12,638
|
)
|
|
6,207
|
|
|
6,431
|
|
|
—
|
|
|
—
|
|
|||||
Change in fair value of contingent consideration liabilities
|
—
|
|
|
54
|
|
|
(42
|
)
|
|
—
|
|
|
12
|
|
|||||
Other expense (income), net
|
155
|
|
|
(1,164
|
)
|
|
991
|
|
|
—
|
|
|
(18
|
)
|
|||||
Total other (income) expense, net
|
(145
|
)
|
|
5,168
|
|
|
11,365
|
|
|
—
|
|
|
16,388
|
|
|||||
(Loss) income before (benefit) provision for income taxes
|
(5,083
|
)
|
|
121,165
|
|
|
23,718
|
|
|
—
|
|
|
139,800
|
|
|||||
(Benefit) provision for income taxes
|
(1,363
|
)
|
|
43,986
|
|
|
4,941
|
|
|
—
|
|
|
47,564
|
|
|||||
Equity in earnings of unconsolidated subsidiaries
|
—
|
|
|
20
|
|
|
(741
|
)
|
|
—
|
|
|
(721
|
)
|
|||||
Equity in earnings of subsidiaries
|
95,235
|
|
|
6,151
|
|
|
—
|
|
|
(101,386
|
)
|
|
—
|
|
|||||
Net income
|
$
|
91,515
|
|
|
$
|
83,350
|
|
|
$
|
18,036
|
|
|
$
|
(101,386
|
)
|
|
$
|
91,515
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
|
|||||||||||||||||||
|
For the Three Months Ended September 30, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
876,862
|
|
|
$
|
450,505
|
|
|
$
|
(29,273
|
)
|
|
$
|
1,298,094
|
|
Cost of goods sold
|
—
|
|
|
522,176
|
|
|
287,284
|
|
|
(29,273
|
)
|
|
780,187
|
|
|||||
Gross margin
|
—
|
|
|
354,686
|
|
|
163,221
|
|
|
—
|
|
|
517,907
|
|
|||||
Facility and warehouse expenses
|
—
|
|
|
79,565
|
|
|
28,784
|
|
|
—
|
|
|
108,349
|
|
|||||
Distribution expenses
|
—
|
|
|
73,752
|
|
|
35,841
|
|
|
—
|
|
|
109,593
|
|
|||||
Selling, general and administrative expenses
|
6,813
|
|
|
93,549
|
|
|
53,184
|
|
|
—
|
|
|
153,546
|
|
|||||
Restructuring and acquisition related expenses
|
—
|
|
|
411
|
|
|
1,795
|
|
|
—
|
|
|
2,206
|
|
|||||
Depreciation and amortization
|
65
|
|
|
14,014
|
|
|
6,739
|
|
|
—
|
|
|
20,818
|
|
|||||
Operating (loss) income
|
(6,878
|
)
|
|
93,395
|
|
|
36,878
|
|
|
—
|
|
|
123,395
|
|
|||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
13,335
|
|
|
81
|
|
|
1,784
|
|
|
—
|
|
|
15,200
|
|
|||||
Intercompany interest (income) expense, net
|
(13,028
|
)
|
|
5,593
|
|
|
7,435
|
|
|
—
|
|
|
—
|
|
|||||
Change in fair value of contingent consideration liabilities
|
—
|
|
|
(72
|
)
|
|
784
|
|
|
—
|
|
|
712
|
|
|||||
Other expense (income), net
|
45
|
|
|
(912
|
)
|
|
(695
|
)
|
|
—
|
|
|
(1,562
|
)
|
|||||
Total other expense, net
|
352
|
|
|
4,690
|
|
|
9,308
|
|
|
—
|
|
|
14,350
|
|
|||||
(Loss) income before (benefit) provision for income taxes
|
(7,230
|
)
|
|
88,705
|
|
|
27,570
|
|
|
—
|
|
|
109,045
|
|
|||||
(Benefit) provision for income taxes
|
(2,867
|
)
|
|
33,973
|
|
|
4,494
|
|
|
—
|
|
|
35,600
|
|
|||||
Equity in earnings of subsidiaries
|
77,808
|
|
|
5,656
|
|
|
—
|
|
|
(83,464
|
)
|
|
—
|
|
|||||
Net income
|
$
|
73,445
|
|
|
$
|
60,388
|
|
|
$
|
23,076
|
|
|
$
|
(83,464
|
)
|
|
$
|
73,445
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
|
|||||||||||||||||||
|
For the Nine Months Ended September 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
3,486,098
|
|
|
$
|
1,665,247
|
|
|
$
|
(95,412
|
)
|
|
$
|
5,055,933
|
|
Cost of goods sold
|
—
|
|
|
2,107,866
|
|
|
1,056,125
|
|
|
(95,412
|
)
|
|
3,068,579
|
|
|||||
Gross margin
|
—
|
|
|
1,378,232
|
|
|
609,122
|
|
|
—
|
|
|
1,987,354
|
|
|||||
Facility and warehouse expenses
|
—
|
|
|
281,805
|
|
|
106,190
|
|
|
—
|
|
|
387,995
|
|
|||||
Distribution expenses
|
—
|
|
|
291,187
|
|
|
141,258
|
|
|
—
|
|
|
432,445
|
|
|||||
Selling, general and administrative expenses
|
20,188
|
|
|
342,038
|
|
|
201,118
|
|
|
—
|
|
|
563,344
|
|
|||||
Restructuring and acquisition related expenses
|
—
|
|
|
7,366
|
|
|
5,450
|
|
|
—
|
|
|
12,816
|
|
|||||
Depreciation and amortization
|
168
|
|
|
58,556
|
|
|
28,412
|
|
|
—
|
|
|
87,136
|
|
|||||
Operating (loss) income
|
(20,356
|
)
|
|
397,280
|
|
|
126,694
|
|
|
—
|
|
|
503,618
|
|
|||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
38,583
|
|
|
186
|
|
|
9,371
|
|
|
—
|
|
|
48,140
|
|
|||||
Intercompany interest (income) expense, net
|
(35,828
|
)
|
|
16,279
|
|
|
19,549
|
|
|
—
|
|
|
—
|
|
|||||
Loss on debt extinguishment
|
324
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
324
|
|
|||||
Change in fair value of contingent consideration liabilities
|
—
|
|
|
(2,183
|
)
|
|
183
|
|
|
—
|
|
|
(2,000
|
)
|
|||||
Other expense (income), net
|
81
|
|
|
(4,542
|
)
|
|
3,440
|
|
|
—
|
|
|
(1,021
|
)
|
|||||
Total other expense, net
|
3,160
|
|
|
9,740
|
|
|
32,543
|
|
|
—
|
|
|
45,443
|
|
|||||
(Loss) income before (benefit) provision for income taxes
|
(23,516
|
)
|
|
387,540
|
|
|
94,151
|
|
|
—
|
|
|
458,175
|
|
|||||
(Benefit) provision for income taxes
|
(8,665
|
)
|
|
144,725
|
|
|
19,866
|
|
|
—
|
|
|
155,926
|
|
|||||
Equity in earnings of unconsolidated subsidiaries
|
—
|
|
|
35
|
|
|
(1,234
|
)
|
|
—
|
|
|
(1,199
|
)
|
|||||
Equity in earnings of subsidiaries
|
315,901
|
|
|
24,528
|
|
|
—
|
|
|
(340,429
|
)
|
|
—
|
|
|||||
Net income
|
$
|
301,050
|
|
|
$
|
267,378
|
|
|
$
|
73,051
|
|
|
$
|
(340,429
|
)
|
|
$
|
301,050
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Income
(In thousands)
|
|||||||||||||||||||
|
For the Nine Months Ended September 30, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Revenue
|
$
|
—
|
|
|
$
|
2,698,008
|
|
|
$
|
1,133,369
|
|
|
$
|
(85,538
|
)
|
|
$
|
3,745,839
|
|
Cost of goods sold
|
—
|
|
|
1,593,764
|
|
|
707,884
|
|
|
(85,538
|
)
|
|
2,216,110
|
|
|||||
Gross margin
|
—
|
|
|
1,104,244
|
|
|
425,485
|
|
|
—
|
|
|
1,529,729
|
|
|||||
Facility and warehouse expenses
|
—
|
|
|
240,389
|
|
|
71,091
|
|
|
—
|
|
|
311,480
|
|
|||||
Distribution expenses
|
—
|
|
|
224,266
|
|
|
95,767
|
|
|
—
|
|
|
320,033
|
|
|||||
Selling, general and administrative expenses
|
20,130
|
|
|
282,364
|
|
|
134,120
|
|
|
—
|
|
|
436,614
|
|
|||||
Restructuring and acquisition related expenses
|
—
|
|
|
750
|
|
|
6,641
|
|
|
—
|
|
|
7,391
|
|
|||||
Depreciation and amortization
|
187
|
|
|
41,568
|
|
|
16,095
|
|
|
—
|
|
|
57,850
|
|
|||||
Operating (loss) income
|
(20,317
|
)
|
|
314,907
|
|
|
101,771
|
|
|
—
|
|
|
396,361
|
|
|||||
Other expense (income):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense, net
|
29,589
|
|
|
621
|
|
|
6,077
|
|
|
—
|
|
|
36,287
|
|
|||||
Intercompany interest (income) expense, net
|
(34,318
|
)
|
|
16,901
|
|
|
17,417
|
|
|
—
|
|
|
—
|
|
|||||
Loss on debt extinguishment
|
2,795
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,795
|
|
|||||
Change in fair value of contingent consideration liabilities
|
—
|
|
|
(936
|
)
|
|
2,701
|
|
|
—
|
|
|
1,765
|
|
|||||
Other expense (income), net
|
172
|
|
|
(2,380
|
)
|
|
471
|
|
|
—
|
|
|
(1,737
|
)
|
|||||
Total other (income) expense, net
|
(1,762
|
)
|
|
14,206
|
|
|
26,666
|
|
|
—
|
|
|
39,110
|
|
|||||
(Loss) income before (benefit) provision for income taxes
|
(18,555
|
)
|
|
300,701
|
|
|
75,105
|
|
|
—
|
|
|
357,251
|
|
|||||
(Benefit) provision for income taxes
|
(7,199
|
)
|
|
115,625
|
|
|
15,066
|
|
|
—
|
|
|
123,492
|
|
|||||
Equity in earnings of subsidiaries
|
245,115
|
|
|
15,496
|
|
|
—
|
|
|
(260,611
|
)
|
|
—
|
|
|||||
Net income
|
$
|
233,759
|
|
|
$
|
200,572
|
|
|
$
|
60,039
|
|
|
$
|
(260,611
|
)
|
|
$
|
233,759
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income (Loss)
(In thousands)
|
|||||||||||||||||||
|
For the Three Months Ended September 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
91,515
|
|
|
$
|
83,350
|
|
|
$
|
18,036
|
|
|
$
|
(101,386
|
)
|
|
$
|
91,515
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation
|
(39,329
|
)
|
|
(14,554
|
)
|
|
(37,922
|
)
|
|
52,476
|
|
|
(39,329
|
)
|
|||||
Net change in unrecognized gains/losses on derivative instruments, net of tax
|
817
|
|
|
—
|
|
|
(229
|
)
|
|
229
|
|
|
817
|
|
|||||
Change in unrealized gain on pension plan, net of tax
|
(30
|
)
|
|
—
|
|
|
(30
|
)
|
|
30
|
|
|
(30
|
)
|
|||||
Total other comprehensive loss
|
(38,542
|
)
|
|
(14,554
|
)
|
|
(38,181
|
)
|
|
52,735
|
|
|
(38,542
|
)
|
|||||
Total comprehensive income (loss)
|
$
|
52,973
|
|
|
$
|
68,796
|
|
|
$
|
(20,145
|
)
|
|
$
|
(48,651
|
)
|
|
$
|
52,973
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
|
|||||||||||||||||||
|
For the Three Months Ended September 30, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
73,445
|
|
|
$
|
60,388
|
|
|
$
|
23,076
|
|
|
$
|
(83,464
|
)
|
|
$
|
73,445
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation
|
28,514
|
|
|
13,130
|
|
|
28,104
|
|
|
(41,234
|
)
|
|
28,514
|
|
|||||
Net change in unrecognized gains/losses on derivative instruments, net of tax
|
625
|
|
|
—
|
|
|
127
|
|
|
(127
|
)
|
|
625
|
|
|||||
Total other comprehensive income
|
29,139
|
|
|
13,130
|
|
|
28,231
|
|
|
(41,361
|
)
|
|
29,139
|
|
|||||
Total comprehensive income
|
$
|
102,584
|
|
|
$
|
73,518
|
|
|
$
|
51,307
|
|
|
$
|
(124,825
|
)
|
|
$
|
102,584
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
|
|||||||||||||||||||
|
For the Nine Months Ended September 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
301,050
|
|
|
$
|
267,378
|
|
|
$
|
73,051
|
|
|
$
|
(340,429
|
)
|
|
$
|
301,050
|
|
Other comprehensive (loss) income, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation
|
(24,013
|
)
|
|
(7,034
|
)
|
|
(22,610
|
)
|
|
29,644
|
|
|
(24,013
|
)
|
|||||
Net change in unrecognized gains/losses on derivative instruments, net of tax
|
2,067
|
|
|
—
|
|
|
(48
|
)
|
|
48
|
|
|
2,067
|
|
|||||
Change in unrealized gain on pension plan, net of tax
|
(97
|
)
|
|
—
|
|
|
(97
|
)
|
|
97
|
|
|
(97
|
)
|
|||||
Total other comprehensive loss
|
(22,043
|
)
|
|
(7,034
|
)
|
|
(22,755
|
)
|
|
29,789
|
|
|
(22,043
|
)
|
|||||
Total comprehensive income
|
$
|
279,007
|
|
|
$
|
260,344
|
|
|
$
|
50,296
|
|
|
$
|
(310,640
|
)
|
|
$
|
279,007
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Comprehensive Income
(In thousands)
|
|||||||||||||||||||
|
For the Nine Months Ended September 30, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
233,759
|
|
|
$
|
200,572
|
|
|
$
|
60,039
|
|
|
$
|
(260,611
|
)
|
|
$
|
233,759
|
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation
|
6,330
|
|
|
3,386
|
|
|
7,107
|
|
|
(10,493
|
)
|
|
6,330
|
|
|||||
Net change in unrecognized gains/losses on derivative instruments, net of tax
|
3,986
|
|
|
—
|
|
|
903
|
|
|
(903
|
)
|
|
3,986
|
|
|||||
Total other comprehensive income
|
10,316
|
|
|
3,386
|
|
|
8,010
|
|
|
(11,396
|
)
|
|
10,316
|
|
|||||
Total comprehensive income
|
$
|
244,075
|
|
|
$
|
203,958
|
|
|
$
|
68,049
|
|
|
$
|
(272,007
|
)
|
|
$
|
244,075
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Cash Flows
(In thousands)
|
|||||||||||||||||||
|
For the Nine Months Ended September 30, 2014
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
264,870
|
|
|
$
|
361,218
|
|
|
$
|
(43,793
|
)
|
|
$
|
(259,653
|
)
|
|
$
|
322,642
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property and equipment
|
(37
|
)
|
|
(59,387
|
)
|
|
(40,767
|
)
|
|
—
|
|
|
(100,191
|
)
|
|||||
Proceeds from sales of property and equipment
|
—
|
|
|
1,218
|
|
|
1,956
|
|
|
—
|
|
|
3,174
|
|
|||||
Investments in unconsolidated subsidiaries
|
—
|
|
|
(600
|
)
|
|
(1,640
|
)
|
|
—
|
|
|
(2,240
|
)
|
|||||
Investment and intercompany note activity with subsidiaries
|
(197,714
|
)
|
|
(607
|
)
|
|
—
|
|
|
198,321
|
|
|
—
|
|
|||||
Acquisitions, net of cash acquired
|
—
|
|
|
(520,721
|
)
|
|
(129,893
|
)
|
|
—
|
|
|
(650,614
|
)
|
|||||
Net cash used in investing activities
|
(197,751
|
)
|
|
(580,097
|
)
|
|
(170,344
|
)
|
|
198,321
|
|
|
(749,871
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from exercise of stock options
|
6,520
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,520
|
|
|||||
Excess tax benefit from stock-based payments
|
14,455
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,455
|
|
|||||
Borrowings under revolving credit facility
|
693,000
|
|
|
—
|
|
|
606,821
|
|
|
—
|
|
|
1,299,821
|
|
|||||
Repayments under revolving credit facility
|
(693,000
|
)
|
|
—
|
|
|
(115,039
|
)
|
|
—
|
|
|
(808,039
|
)
|
|||||
Borrowings under term loans
|
11,250
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,250
|
|
|||||
Repayments under term loans
|
(11,250
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,250
|
)
|
|||||
Borrowings under receivables securitization facility
|
—
|
|
|
—
|
|
|
80,000
|
|
|
—
|
|
|
80,000
|
|
|||||
Repayments of other long-term debt
|
(1,920
|
)
|
|
(2,104
|
)
|
|
(16,508
|
)
|
|
—
|
|
|
(20,532
|
)
|
|||||
Payments of other obligations
|
—
|
|
|
(407
|
)
|
|
(41,527
|
)
|
|
—
|
|
|
(41,934
|
)
|
|||||
Other financing activities, net
|
(18,669
|
)
|
|
12,340
|
|
|
(552
|
)
|
|
—
|
|
|
(6,881
|
)
|
|||||
Investment and intercompany note activity with parent
|
—
|
|
|
481,951
|
|
|
(283,630
|
)
|
|
(198,321
|
)
|
|
—
|
|
|||||
Dividends
|
—
|
|
|
(259,653
|
)
|
|
—
|
|
|
259,653
|
|
|
—
|
|
|||||
Net cash provided by financing activities
|
386
|
|
|
232,127
|
|
|
229,565
|
|
|
61,332
|
|
|
523,410
|
|
|||||
Effect of exchange rate changes on cash and equivalents
|
—
|
|
|
(86
|
)
|
|
(1,937
|
)
|
|
—
|
|
|
(2,023
|
)
|
|||||
Net increase in cash and equivalents
|
67,505
|
|
|
13,162
|
|
|
13,491
|
|
|
—
|
|
|
94,158
|
|
|||||
Cash and equivalents, beginning of period
|
77,926
|
|
|
13,693
|
|
|
58,869
|
|
|
—
|
|
|
150,488
|
|
|||||
Cash and equivalents, end of period
|
$
|
145,431
|
|
|
$
|
26,855
|
|
|
$
|
72,360
|
|
|
$
|
—
|
|
|
$
|
244,646
|
|
LKQ CORPORATION AND SUBSIDIARIES
Unaudited Condensed Consolidating Statements of Cash Flows
(In thousands)
|
|||||||||||||||||||
|
For the Nine Months Ended September 30, 2013
|
||||||||||||||||||
|
Parent
|
|
Guarantors
|
|
Non-Guarantors
|
|
Eliminations
|
|
Consolidated
|
||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net cash provided by operating activities
|
$
|
101,136
|
|
|
$
|
195,524
|
|
|
$
|
116,212
|
|
|
$
|
(71,943
|
)
|
|
$
|
340,929
|
|
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property and equipment
|
(1
|
)
|
|
(40,824
|
)
|
|
(20,301
|
)
|
|
—
|
|
|
(61,126
|
)
|
|||||
Proceeds from sales of property and equipment
|
—
|
|
|
1,032
|
|
|
427
|
|
|
—
|
|
|
1,459
|
|
|||||
Investment in unconsolidated subsidiary
|
—
|
|
|
—
|
|
|
(9,136
|
)
|
|
—
|
|
|
(9,136
|
)
|
|||||
Investment and intercompany note activity with subsidiaries
|
(418,205
|
)
|
|
(84,893
|
)
|
|
—
|
|
|
503,098
|
|
|
—
|
|
|||||
Acquisitions, net of cash acquired
|
—
|
|
|
(21,570
|
)
|
|
(374,404
|
)
|
|
—
|
|
|
(395,974
|
)
|
|||||
Net cash used in investing activities
|
(418,206
|
)
|
|
(146,255
|
)
|
|
(403,414
|
)
|
|
503,098
|
|
|
(464,777
|
)
|
|||||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
|
|
|
|
|
|
||||||||||
Proceeds from exercise of stock options
|
13,647
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
13,647
|
|
|||||
Excess tax benefit from stock-based payments
|
15,998
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,998
|
|
|||||
Proceeds from issuance of senior notes
|
600,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
600,000
|
|
|||||
Borrowings under revolving credit facility
|
315,000
|
|
|
—
|
|
|
84,758
|
|
|
—
|
|
|
399,758
|
|
|||||
Repayments under revolving credit facility
|
(616,000
|
)
|
|
—
|
|
|
(129,313
|
)
|
|
—
|
|
|
(745,313
|
)
|
|||||
Borrowings under term loans
|
35,000
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
35,000
|
|
|||||
Repayments under term loans
|
(11,250
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(11,250
|
)
|
|||||
Borrowings under receivables securitization facility
|
—
|
|
|
—
|
|
|
41,500
|
|
|
—
|
|
|
41,500
|
|
|||||
Repayments under receivables securitization facility
|
—
|
|
|
—
|
|
|
(111,500
|
)
|
|
—
|
|
|
(111,500
|
)
|
|||||
Repayments of other long-term debt
|
(925
|
)
|
|
(7,983
|
)
|
|
(10,610
|
)
|
|
—
|
|
|
(19,518
|
)
|
|||||
Payments of other obligations
|
—
|
|
|
(473
|
)
|
|
(31,618
|
)
|
|
—
|
|
|
(32,091
|
)
|
|||||
Other financing activities, net
|
(16,830
|
)
|
|
—
|
|
|
(82
|
)
|
|
—
|
|
|
(16,912
|
)
|
|||||
Investment and intercompany note activity with parent
|
—
|
|
|
25,095
|
|
|
478,003
|
|
|
(503,098
|
)
|
|
—
|
|
|||||
Dividends
|
—
|
|
|
(71,943
|
)
|
|
—
|
|
|
71,943
|
|
|
—
|
|
|||||
Net cash provided by (used in) financing activities
|
334,640
|
|
|
(55,304
|
)
|
|
321,138
|
|
|
(431,155
|
)
|
|
169,319
|
|
|||||
Effect of exchange rate changes on cash and equivalents
|
—
|
|
|
—
|
|
|
2,096
|
|
|
—
|
|
|
2,096
|
|
|||||
Net increase (decrease) in cash and equivalents
|
17,570
|
|
|
(6,035
|
)
|
|
36,032
|
|
|
—
|
|
|
47,567
|
|
|||||
Cash and equivalents, beginning of period
|
18,396
|
|
|
18,253
|
|
|
23,121
|
|
|
—
|
|
|
59,770
|
|
|||||
Cash and equivalents, end of period
|
$
|
35,966
|
|
|
$
|
12,218
|
|
|
$
|
59,153
|
|
|
$
|
—
|
|
|
$
|
107,337
|
|
Item 2.
|
Management's Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||
|
September 30,
|
|
September 30,
|
||||||||
|
2014
|
|
2013
|
|
2014
|
|
2013
|
||||
Statements of Income Data:
|
|
|
|
|
|
|
|
||||
Revenue
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
|
100.0
|
%
|
Cost of goods sold
|
61.4
|
%
|
|
60.1
|
%
|
|
60.7
|
%
|
|
59.2
|
%
|
Gross margin
|
38.6
|
%
|
|
39.9
|
%
|
|
39.3
|
%
|
|
40.8
|
%
|
Facility and warehouse expenses
|
7.7
|
%
|
|
8.3
|
%
|
|
7.7
|
%
|
|
8.3
|
%
|
Distribution expenses
|
8.6
|
%
|
|
8.4
|
%
|
|
8.6
|
%
|
|
8.5
|
%
|
Selling, general and administrative expenses
|
11.2
|
%
|
|
11.8
|
%
|
|
11.1
|
%
|
|
11.7
|
%
|
Restructuring and acquisition related expenses
|
0.2
|
%
|
|
0.2
|
%
|
|
0.3
|
%
|
|
0.2
|
%
|
Depreciation and amortization
|
1.8
|
%
|
|
1.6
|
%
|
|
1.7
|
%
|
|
1.5
|
%
|
Operating income
|
9.1
|
%
|
|
9.5
|
%
|
|
10.0
|
%
|
|
10.6
|
%
|
Other expense, net
|
1.0
|
%
|
|
1.1
|
%
|
|
0.9
|
%
|
|
1.0
|
%
|
Income before provision for income taxes
|
8.1
|
%
|
|
8.4
|
%
|
|
9.1
|
%
|
|
9.5
|
%
|
Provision for income taxes
|
2.8
|
%
|
|
2.7
|
%
|
|
3.1
|
%
|
|
3.3
|
%
|
Equity in earnings of unconsolidated subsidiaries
|
(0.0
|
)%
|
|
—
|
%
|
|
(0.0
|
)%
|
|
—
|
%
|
Net income
|
5.3
|
%
|
|
5.7
|
%
|
|
6.0
|
%
|
|
6.2
|
%
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||||||||||||||||||
|
September 30,
|
|
September 30,
|
||||||||||||||||||||
|
2014
|
|
% of Total Revenue
|
|
2013
|
|
% of Total Revenue
|
|
2014
|
|
% of Total Revenue
|
|
2013
|
|
% of Total Revenue
|
||||||||
Third Party Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
1,024,835
|
|
|
|
|
$
|
928,307
|
|
|
|
|
$
|
3,080,090
|
|
|
|
|
$
|
2,865,613
|
|
|
|
Europe
|
495,776
|
|
|
|
|
369,787
|
|
|
|
|
1,380,663
|
|
|
|
|
880,226
|
|
|
|
||||
Specialty
|
200,413
|
|
|
|
|
—
|
|
|
|
|
595,180
|
|
|
|
|
—
|
|
|
|
||||
Total third party revenue
|
$
|
1,721,024
|
|
|
|
|
$
|
1,298,094
|
|
|
|
|
$
|
5,055,933
|
|
|
|
|
$
|
3,745,839
|
|
|
|
Total Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
1,024,967
|
|
|
|
|
$
|
928,307
|
|
|
|
|
$
|
3,080,356
|
|
|
|
|
$
|
2,865,613
|
|
|
|
Europe
|
495,776
|
|
|
|
|
369,787
|
|
|
|
|
1,380,663
|
|
|
|
|
880,226
|
|
|
|
||||
Specialty
|
201,007
|
|
|
|
|
—
|
|
|
|
|
596,430
|
|
|
|
|
—
|
|
|
|
||||
Eliminations
|
(726
|
)
|
|
|
|
—
|
|
|
|
|
(1,516
|
)
|
|
|
|
—
|
|
|
|
||||
Total revenue
|
$
|
1,721,024
|
|
|
|
|
$
|
1,298,094
|
|
|
|
|
$
|
5,055,933
|
|
|
|
|
$
|
3,745,839
|
|
|
|
Segment EBITDA
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
North America
|
$
|
131,851
|
|
|
12.9%
|
|
$
|
108,863
|
|
|
11.7%
|
|
$
|
415,139
|
|
|
13.5%
|
|
$
|
363,411
|
|
|
12.7%
|
Europe
|
41,726
|
|
|
8.4%
|
|
40,457
|
|
|
10.9%
|
|
128,826
|
|
|
9.3%
|
|
103,946
|
|
|
11.8%
|
||||
Specialty
|
17,977
|
|
|
8.9%
|
|
—
|
|
|
n/m
|
|
64,137
|
|
|
10.8%
|
|
—
|
|
|
n/m
|
||||
Total Segment EBITDA
|
$
|
191,554
|
|
|
11.1%
|
|
$
|
149,320
|
|
|
11.5%
|
|
$
|
608,102
|
|
|
12.0%
|
|
$
|
467,357
|
|
|
12.5%
|
|
September 30, 2014
|
|
December 31, 2013
|
|
September 30, 2013
|
||||||
Cash and equivalents
|
$
|
244,646
|
|
|
$
|
150,488
|
|
|
$
|
107,337
|
|
Total debt
|
1,898,041
|
|
|
1,305,781
|
|
|
1,312,055
|
|
|||
Net debt (total debt less cash and equivalents)
|
1,653,395
|
|
|
1,155,293
|
|
|
1,204,718
|
|
|||
Current maturities
|
72,908
|
|
|
41,535
|
|
|
61,123
|
|
|||
Capacity under credit facilities
(a)
|
1,947,000
|
|
|
1,430,000
|
|
|
1,430,000
|
|
|||
Availability under credit facilities
(a)
|
1,113,276
|
|
|
1,150,603
|
|
|
1,166,921
|
|
|||
Total liquidity (cash and equivalents plus availability under credit facilities)
|
1,357,922
|
|
|
1,301,091
|
|
|
1,274,258
|
|
•
|
Senior secured credit facility maturing in May 2019, composed of $450 million in term loans (
$438.8 million
outstanding at
September 30, 2014
) and $1.85 billion in revolving credit (
$693.3 million
outstanding at
September 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 $97 million (
$80 million
outstanding as of
September 30, 2014
) maturing in October 2017 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.
|
3.2
|
Amended and Restated Bylaws of LKQ Corporation (incorporated herein by reference to Exhibit 3.1 to the Company's report on Form 8-K filed with the SEC on August 8, 2014).
|
10.1
|
LKQ Severance Policy for Key Executives (incorporated herein by reference to Exhibit 10.1 to the Company's report on Form 8-K filed with the SEC on July 28, 2014).
|
10.2
|
Change of Control Agreement between LKQ Corporation and Robert L. Wagman dated as of July 24, 2014 (incorporated herein by reference to Exhibit 10.2 to the Company's report on Form 8-K filed with the SEC on July 28, 2014).
|
10.3
|
Change of Control Agreement between LKQ Corporation and John S. Quinn dated as of July 24, 2014 (incorporated herein by reference to Exhibit 10.3 to the Company's report on Form 8-K filed with the SEC on July 28, 2014).
|
10.4
|
Change of Control Agreement between LKQ Corporation and Walter P. Hanley dated as of July 24, 2014 (incorporated herein by reference to Exhibit 10.4 to the Company's report on Form 8-K filed with the SEC on July 28, 2014).
|
10.5
|
Change of Control Agreement between LKQ Corporation and Victor M. Casini dated as of July 24, 2014 (incorporated herein by reference to Exhibit 10.5 to the Company's report on Form 8-K filed with the SEC on July 28, 2014).
|
10.6
|
Change of Control Agreement between LKQ Corporation and Steven Greenspan dated as of July 24, 2014 (incorporated herein by reference to Exhibit 10.6 to the Company's report on Form 8-K filed with the SEC on July 28, 2014).
|
10.7
|
Change of Control Agreement between LKQ Corporation and Robert A. Alberico dated as of July 24, 2014 (incorporated herein by reference to Exhibit 10.7 to the Company's report on Form 8-K filed with the SEC on July 28, 2014).
|
10.8
|
Change of Control Agreement between LKQ Corporation and Michael S. Clark dated as of July 24, 2014 (incorporated herein by reference to Exhibit 10.8 to the Company's report on Form 8-K filed with the SEC on July 28, 2014).
|
10.9
|
Amendment No. 1 to Receivables Purchase Agreement dated as of September 29, 2014 among LKQ Receivables Finance Company, LLC, as Seller, LKQ Corporation, as Servicer, Victory Receivables Corporation, as a Conduit, and The Bank of Tokyo-Mitsubishi UFJ, Ltd., as a Financial Institution, as Administrative Agent and as a Managing Agent (incorporated herein by reference to Exhibit 10.1 to the Company's report on Form 8-K filed with the SEC on October 3, 2014).
|
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)
|
|
|
|
/
S
/ M
ICHAEL
S. C
LARK
|
|
Michael S. Clark
|
|
Vice President — Finance and Controller
(As duly authorized officer and Principal Accounting Officer)
|
|
LKQ CORPORATION
|
|
|
|
|
|
By:
|
/s/ VICTOR M. CASINI
|
|
Name:
|
Victor M. Casini
|
|
Title:
|
Senior Vice President, General Counsel and Corporate Secretary
|
/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
|