| ☒ | 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, Illinois | 60661 | |||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||
| Title of Each Class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||
| Common Stock, par value $.01 per share | LKQ | The Nasdaq Global Select Market | |||||||||||||||
| Large Accelerated Filer | ☒ | Accelerated Filer | ☐ | Emerging Growth Company | ☐ | ||||||||||||
| Non-accelerated Filer | ☐ | Smaller Reporting Company | ☐ | ||||||||||||||
| Item | Page | |||||||
| PART I | FINANCIAL INFORMATION | |||||||
| Item 1. | ||||||||
| Item 2. | ||||||||
| Item 3. | ||||||||
| Item 4. | ||||||||
| PART II | OTHER INFORMATION | |||||||
| Item 1. | ||||||||
| Item 1A. | ||||||||
| Item 2. | ||||||||
| Item 5. | ||||||||
| Item 6. | ||||||||
| SIGNATURES | ||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Revenue | $ | 3,448 | $ | 3,341 | $ | 6,797 | $ | 6,689 | |||||||||||||||
| Cost of goods sold | 2,034 | 1,974 | 4,011 | 3,965 | |||||||||||||||||||
| Gross margin | 1,414 | 1,367 | 2,786 | 2,724 | |||||||||||||||||||
| Selling, general and administrative expenses | 938 | 898 | 1,869 | 1,822 | |||||||||||||||||||
| Restructuring and transaction related expenses | 8 | 4 | 26 | 7 | |||||||||||||||||||
Gain on disposal of businesses (1) | — | (155) | — | (155) | |||||||||||||||||||
| Depreciation and amortization | 61 | 61 | 119 | 120 | |||||||||||||||||||
| Operating income | 407 | 559 | 772 | 930 | |||||||||||||||||||
| Other expense (income): | |||||||||||||||||||||||
| Interest expense | 52 | 16 | 88 | 32 | |||||||||||||||||||
Gains on foreign exchange contracts - acquisition related (2) | (23) | — | (46) | — | |||||||||||||||||||
| Interest income and other income, net | (11) | — | (20) | (1) | |||||||||||||||||||
| Total other expense, net | 18 | 16 | 22 | 31 | |||||||||||||||||||
| Income from continuing operations before provision for income taxes | 389 | 543 | 750 | 899 | |||||||||||||||||||
| Provision for income taxes | 109 | 127 | 203 | 216 | |||||||||||||||||||
| Equity in earnings of unconsolidated subsidiaries | 2 | 4 | 5 | 6 | |||||||||||||||||||
| Income from continuing operations | 282 | 420 | 552 | 689 | |||||||||||||||||||
| Net income from discontinued operations | — | — | — | 4 | |||||||||||||||||||
| Net income | 282 | 420 | 552 | 693 | |||||||||||||||||||
| Less: net income attributable to continuing noncontrolling interest | 1 | — | 1 | — | |||||||||||||||||||
| Net income attributable to LKQ stockholders | $ | 281 | $ | 420 | $ | 551 | $ | 693 | |||||||||||||||
Basic earnings per share: (3) | |||||||||||||||||||||||
| Income from continuing operations | $ | 1.05 | $ | 1.49 | $ | 2.06 | $ | 2.43 | |||||||||||||||
| Net income from discontinued operations | — | — | — | 0.02 | |||||||||||||||||||
| Net income | 1.05 | 1.49 | 2.06 | 2.45 | |||||||||||||||||||
| Less: net income attributable to continuing noncontrolling interest | — | — | — | — | |||||||||||||||||||
| Net income attributable to LKQ stockholders | $ | 1.05 | $ | 1.49 | $ | 2.06 | $ | 2.44 | |||||||||||||||
Diluted earnings per share: (3) | |||||||||||||||||||||||
| Income from continuing operations | $ | 1.05 | $ | 1.49 | $ | 2.06 | $ | 2.42 | |||||||||||||||
| Net income from discontinued operations | — | — | — | 0.02 | |||||||||||||||||||
| Net income | 1.05 | 1.49 | 2.06 | 2.44 | |||||||||||||||||||
| Less: net income attributable to continuing noncontrolling interest | — | — | — | — | |||||||||||||||||||
| Net income attributable to LKQ stockholders | $ | 1.05 | $ | 1.49 | $ | 2.06 | $ | 2.44 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Net income | $ | 282 | $ | 420 | $ | 552 | $ | 693 | |||||||||||||||
| Less: net income attributable to continuing noncontrolling interest | 1 | — | 1 | — | |||||||||||||||||||
| Net income attributable to LKQ stockholders | 281 | 420 | 551 | 693 | |||||||||||||||||||
| Other comprehensive income (loss): | |||||||||||||||||||||||
| Foreign currency translation, net of tax | 34 | (150) | 91 | (204) | |||||||||||||||||||
| Net change in unrealized gains/losses on cash flow hedges, net of tax | 10 | — | (7) | — | |||||||||||||||||||
| Other comprehensive income from unconsolidated subsidiaries | 1 | 1 | 4 | 2 | |||||||||||||||||||
| Other comprehensive income (loss) | 45 | (149) | 88 | (202) | |||||||||||||||||||
| Comprehensive income | 327 | 271 | 640 | 491 | |||||||||||||||||||
| Less: comprehensive income attributable to continuing noncontrolling interest | 1 | — | 1 | — | |||||||||||||||||||
| Comprehensive income attributable to LKQ stockholders | $ | 326 | $ | 271 | $ | 639 | $ | 491 | |||||||||||||||
| June 30, 2023 | December 31, 2022 | ||||||||||
| Assets | |||||||||||
| Current assets: | |||||||||||
| Cash and cash equivalents | $ | 1,904 | $ | 278 | |||||||
| Receivables, net of allowance for credit losses | 1,257 | 998 | |||||||||
| Inventories | 2,681 | 2,752 | |||||||||
| Prepaid expenses and other current assets | 314 | 230 | |||||||||
| Total current assets | 6,156 | 4,258 | |||||||||
| Property, plant and equipment, net | 1,298 | 1,236 | |||||||||
| Operating lease assets, net | 1,277 | 1,227 | |||||||||
| Goodwill | 4,400 | 4,319 | |||||||||
| Other intangibles, net | 648 | 653 | |||||||||
| Equity method investments | 155 | 141 | |||||||||
| Other noncurrent assets | 221 | 204 | |||||||||
| Total assets | $ | 14,155 | $ | 12,038 | |||||||
| Liabilities and Stockholders' Equity | |||||||||||
| Current liabilities: | |||||||||||
| Accounts payable | $ | 1,475 | $ | 1,339 | |||||||
| Accrued expenses: | |||||||||||
| Accrued payroll-related liabilities | 200 | 218 | |||||||||
| Refund liability | 120 | 109 | |||||||||
| Other accrued expenses | 343 | 294 | |||||||||
| Current portion of operating lease liabilities | 199 | 188 | |||||||||
| Current portion of long-term obligations | 579 | 34 | |||||||||
| Other current liabilities | 112 | 89 | |||||||||
| Total current liabilities | 3,028 | 2,271 | |||||||||
| Long-term operating lease liabilities, excluding current portion | 1,131 | 1,091 | |||||||||
| Long-term obligations, excluding current portion | 3,421 | 2,622 | |||||||||
| Deferred income taxes | 300 | 280 | |||||||||
| Other noncurrent liabilities | 283 | 283 | |||||||||
| Commitments and contingencies | |||||||||||
| Redeemable noncontrolling interest | 24 | 24 | |||||||||
| Stockholders' equity: | |||||||||||
Common stock, $0.01 par value, 1,000.0 shares authorized, 322.9 shares issued and 267.7 shares outstanding at June 30, 2023; 322.4 shares issued and 267.3 shares outstanding at December 31, 2022 | 3 | 3 | |||||||||
| Additional paid-in capital | 1,520 | 1,506 | |||||||||
| Retained earnings | 7,059 | 6,656 | |||||||||
| Accumulated other comprehensive loss | (235) | (323) | |||||||||
Treasury stock, at cost; 55.2 shares at June 30, 2023 and 55.1 shares at December 31, 2022 | (2,394) | (2,389) | |||||||||
| Total Company stockholders' equity | 5,953 | 5,453 | |||||||||
| Noncontrolling interest | 15 | 14 | |||||||||
| Total stockholders' equity | 5,968 | 5,467 | |||||||||
| Total liabilities and stockholders' equity | $ | 14,155 | $ | 12,038 | |||||||
| Six Months Ended June 30, | |||||||||||
| 2023 | 2022 | ||||||||||
| CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
| Net income | $ | 552 | $ | 693 | |||||||
| Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
| Depreciation and amortization | 135 | 133 | |||||||||
| Gain on disposal of businesses | — | (155) | |||||||||
| Stock-based compensation expense | 20 | 23 | |||||||||
| Gains on foreign exchange contracts - acquisition related | (46) | — | |||||||||
| Other | 37 | (9) | |||||||||
| Changes in operating assets and liabilities, net of effects from acquisitions and dispositions: | |||||||||||
| Receivables | (223) | (186) | |||||||||
| Inventories | 132 | (259) | |||||||||
| Prepaid income taxes/income taxes payable | (5) | 74 | |||||||||
| Accounts payable | 104 | 412 | |||||||||
| Other operating assets and liabilities | (3) | 11 | |||||||||
| Net cash provided by operating activities | 703 | 737 | |||||||||
| CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
| Purchases of property, plant and equipment | (136) | (99) | |||||||||
| Proceeds from disposals of property, plant and equipment | 6 | 3 | |||||||||
| Acquisitions, net of cash acquired | (52) | (5) | |||||||||
| Proceeds from disposals of businesses | — | 372 | |||||||||
| Other investing activities, net | (3) | (6) | |||||||||
| Net cash (used in) provided by investing activities | (185) | 265 | |||||||||
| CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
| Debt issuance costs | (30) | — | |||||||||
| Proceeds from issuance of U.S. Notes (2028/33), net of unamortized bond discount | 1,394 | — | |||||||||
| Borrowings under revolving credit facilities | 1,693 | 808 | |||||||||
| Repayments under revolving credit facilities | (2,267) | (1,117) | |||||||||
| Borrowings under term loans | 500 | — | |||||||||
| (Repayments) borrowings of other debt, net | (16) | 8 | |||||||||
| Settlement of derivative instruments | (13) | — | |||||||||
| Dividends paid to LKQ stockholders | (148) | (142) | |||||||||
| Purchase of treasury stock | (8) | (528) | |||||||||
| Other financing activities, net | (6) | (14) | |||||||||
| Net cash provided by (used in) financing activities | 1,099 | (985) | |||||||||
| Effect of exchange rate changes on cash and cash equivalents | 9 | (26) | |||||||||
| Net increase (decrease) in cash and cash equivalents | 1,626 | (9) | |||||||||
| Cash and cash equivalents, beginning of period | 278 | 274 | |||||||||
| Cash and cash equivalents, end of period | $ | 1,904 | $ | 265 | |||||||
| Supplemental disclosure of cash paid for: | |||||||||||
| Income taxes, net of refunds | $ | 184 | $ | 145 | |||||||
| Interest | 67 | 29 | |||||||||
| LKQ Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of April 1, 2023 | 322.8 | $ | 3 | (55.2) | $ | (2,394) | $ | 1,510 | $ | 6,852 | $ | (280) | $ | 14 | $ | 5,705 | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 281 | — | 1 | 282 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | 45 | — | 45 | ||||||||||||||||||||||||||||||||||||||||||||
| Vesting of restricted stock units, net of shares withheld for employee tax | 0.1 | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | 10 | — | — | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to LKQ stockholders ($0.275 per share) | — | — | — | — | — | (74) | — | — | (74) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2023 | 322.9 | $ | 3 | (55.2) | $ | (2,394) | $ | 1,520 | $ | 7,059 | $ | (235) | $ | 15 | $ | 5,968 | |||||||||||||||||||||||||||||||||||||
| LKQ Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of April 1, 2022 | 322.0 | $ | 3 | (37.3) | $ | (1,490) | $ | 1,482 | $ | 5,995 | $ | (206) | $ | 15 | $ | 5,799 | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 420 | — | — | 420 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | (149) | — | (149) | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase of treasury stock | — | — | (8.1) | (404) | — | — | — | — | (404) | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | 10 | — | — | — | 10 | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to LKQ stockholders ($0.25 per share) | — | — | — | — | — | (71) | — | — | (71) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2022 | 322.0 | $ | 3 | (45.4) | $ | (1,894) | $ | 1,492 | $ | 6,344 | $ | (355) | $ | 15 | $ | 5,605 | |||||||||||||||||||||||||||||||||||||
| LKQ Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2023 | 322.4 | $ | 3 | (55.1) | $ | (2,389) | $ | 1,506 | $ | 6,656 | $ | (323) | $ | 14 | $ | 5,467 | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 551 | — | 1 | 552 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income | — | — | — | — | — | — | 88 | — | 88 | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase of treasury stock | — | — | (0.1) | (5) | — | — | — | — | (5) | ||||||||||||||||||||||||||||||||||||||||||||
| Vesting of restricted stock units, net of shares withheld for employee tax | 0.5 | — | — | — | (6) | — | — | — | (6) | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | 20 | — | — | — | 20 | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to LKQ stockholders ($0.55 per share) | — | — | — | — | — | (148) | — | — | (148) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2023 | 322.9 | $ | 3 | (55.2) | $ | (2,394) | $ | 1,520 | $ | 7,059 | $ | (235) | $ | 15 | $ | 5,968 | |||||||||||||||||||||||||||||||||||||
| LKQ Stockholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||
| Common Stock | Treasury Stock | Additional Paid-In Capital | Retained Earnings | Accumulated Other Comprehensive Loss | Noncontrolling Interest | Total Stockholders' Equity | |||||||||||||||||||||||||||||||||||||||||||||||
| Shares | Amount | Shares | Amount | ||||||||||||||||||||||||||||||||||||||||||||||||||
| Balance as of January 1, 2022 | 321.6 | $ | 3 | (34.6) | $ | (1,346) | $ | 1,474 | $ | 5,794 | $ | (153) | $ | 15 | $ | 5,787 | |||||||||||||||||||||||||||||||||||||
| Net income | — | — | — | — | — | 693 | — | — | 693 | ||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive loss | — | — | — | — | — | — | (202) | — | (202) | ||||||||||||||||||||||||||||||||||||||||||||
| Purchase of treasury stock | — | — | (10.8) | (548) | — | — | — | — | (548) | ||||||||||||||||||||||||||||||||||||||||||||
| Vesting of restricted stock units, net of shares withheld for employee tax | 0.4 | — | — | — | (5) | — | — | — | (5) | ||||||||||||||||||||||||||||||||||||||||||||
| Stock-based compensation expense | — | — | — | — | 23 | — | — | — | 23 | ||||||||||||||||||||||||||||||||||||||||||||
| Dividends declared to LKQ stockholders ($0.50 per share) | — | — | — | — | — | (143) | — | — | (143) | ||||||||||||||||||||||||||||||||||||||||||||
| Balance as of June 30, 2022 | 322.0 | $ | 3 | (45.4) | $ | (1,894) | $ | 1,492 | $ | 6,344 | $ | (355) | $ | 15 | $ | 5,605 | |||||||||||||||||||||||||||||||||||||
| June 30, 2023 | December 31, 2022 | ||||||||||
| Aftermarket and refurbished products | $ | 2,133 | $ | 2,279 | |||||||
| Salvage and remanufactured products | 493 | 427 | |||||||||
| Manufactured products | 55 | 46 | |||||||||
| Total inventories | $ | 2,681 | $ | 2,752 | |||||||
| Segment | Ownership as of June 30, 2023 | June 30, 2023 | December 31, 2022 | ||||||||||||||||||||
MEKO AB(1)(2) | Europe | 26.6% | $ | 141 | $ | 129 | |||||||||||||||||
| Other | 14 | 12 | |||||||||||||||||||||
| Total | $ | 155 | $ | 141 | |||||||||||||||||||
| Warranty Reserve | |||||
| Balance as of December 31, 2022 | $ | 32 | |||
| Warranty expense | 43 | ||||
| Warranty claims | (41) | ||||
| Balance as of June 30, 2023 | $ | 34 | |||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Wholesale - North America | $ | 1,121 | $ | 1,050 | $ | 2,269 | $ | 2,156 | |||||||||||||||
| Europe | 1,633 | 1,470 | 3,181 | 2,951 | |||||||||||||||||||
| Specialty | 442 | 512 | 838 | 972 | |||||||||||||||||||
| Self Service | 63 | 60 | 123 | 117 | |||||||||||||||||||
| Parts and services | 3,259 | 3,092 | 6,411 | 6,196 | |||||||||||||||||||
| Wholesale - North America | 78 | 94 | 159 | 189 | |||||||||||||||||||
| Europe | 5 | 7 | 12 | 14 | |||||||||||||||||||
| Self Service | 106 | 148 | 215 | 290 | |||||||||||||||||||
| Other | 189 | 249 | 386 | 493 | |||||||||||||||||||
| Total revenue | $ | 3,448 | $ | 3,341 | $ | 6,797 | $ | 6,689 | |||||||||||||||
| Classification | June 30, 2023 | December 31, 2022 | ||||||||||||||||||
| Return asset | Prepaid expenses and other current assets | $ | 63 | $ | 58 | |||||||||||||||
| Refund liability | Refund liability | 120 | 109 | |||||||||||||||||
| Variable consideration reserve | Receivables, net of allowance for credit losses | 127 | 136 | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Revenue | |||||||||||||||||||||||
| United States | $ | 1,690 | $ | 1,747 | $ | 3,371 | $ | 3,497 | |||||||||||||||
| Germany | 436 | 390 | 852 | 776 | |||||||||||||||||||
| United Kingdom | 422 | 393 | 837 | 818 | |||||||||||||||||||
| Other countries | 900 | 811 | 1,737 | 1,598 | |||||||||||||||||||
| Total revenue | $ | 3,448 | $ | 3,341 | $ | 6,797 | $ | 6,689 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||
| Plan | Expense Type | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||
| 2022 Global Plan | Employee related costs | $ | — | $ | — | $ | 2 | $ | — | |||||||||||||||||||||||
| Facility exit costs | 1 | — | 3 | — | ||||||||||||||||||||||||||||
| Other costs | 1 | — | 2 | — | ||||||||||||||||||||||||||||
| Total | $ | 2 | $ | — | $ | 7 | $ | — | ||||||||||||||||||||||||
| 2019/2020 Global Plan | Facility exit costs | $ | — | $ | 1 | $ | — | $ | 1 | |||||||||||||||||||||||
| Total | $ | — | $ | 1 | $ | — | $ | 1 | ||||||||||||||||||||||||
| 1 LKQ Europe Plan | Employee related costs | $ | — | $ | — | $ | 1 | $ | — | |||||||||||||||||||||||
| Total | $ | — | $ | — | $ | 1 | $ | — | ||||||||||||||||||||||||
| Acquisition Integration Plans | Employee related costs | $ | — | $ | 2 | $ | — | $ | 2 | |||||||||||||||||||||||
| Facility exit costs | — | — | 2 | — | ||||||||||||||||||||||||||||
| Total | $ | — | $ | 2 | $ | 2 | $ | 2 | ||||||||||||||||||||||||
| Total restructuring expenses | $ | 2 | $ | 3 | $ | 10 | $ | 3 | ||||||||||||||||||||||||
| Cumulative Program Costs | ||||||||||||||||||||||||||||||||
| Wholesale - North America | Europe | Specialty | Self Service | Total | ||||||||||||||||||||||||||||
| 2022 Global Plan | $ | 1 | $ | 12 | $ | 3 | $ | 1 | $ | 17 | ||||||||||||||||||||||
| 2019/2020 Global Plan | 43 | 59 | 2 | 2 | 106 | |||||||||||||||||||||||||||
| 1 LKQ Europe Plan | — | 8 | — | — | 8 | |||||||||||||||||||||||||||
| 2022 Global Plan | 2019/20 Global Plan | 1 LKQ Europe Plan | ||||||||||||||||||||||||||||||||||||
| June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||||
Employee related costs (1) | $ | — | $ | 3 | $ | — | $ | 1 | $ | 1 | $ | 1 | ||||||||||||||||||||||||||
Facility exit costs (2) | 3 | 1 | 3 | 6 | — | — | ||||||||||||||||||||||||||||||||
| Other costs | — | — | 2 | 2 | — | — | ||||||||||||||||||||||||||||||||
| Total | $ | 3 | $ | 4 | $ | 5 | $ | 9 | $ | 1 | $ | 1 | ||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||
Professional fees (1) | $ | 6 | $ | 1 | $ | 16 | $ | 4 | ||||||||||||||||||
Transaction related expenses | $ | 6 | $ | 1 | $ | 16 | $ | 4 | ||||||||||||||||||
| Number Outstanding | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value(1) | ||||||||||||||||||||
| Unvested as of January 1, 2023 | 1.3 | $ | 41.02 | ||||||||||||||||||||
Granted (2) | 0.5 | $ | 57.00 | ||||||||||||||||||||
| Vested | (0.4) | $ | 42.07 | ||||||||||||||||||||
| Unvested as of June 30, 2023 | 1.4 | $ | 47.31 | ||||||||||||||||||||
| Expected to vest after June 30, 2023 | 1.2 | $ | 47.75 | 2.9 | $ | 71 | |||||||||||||||||
| Number Outstanding | Weighted Average Grant Date Fair Value | Weighted Average Remaining Contractual Term (in years) | Aggregate Intrinsic Value(1) | ||||||||||||||||||||
| Unvested as of January 1, 2023 | 0.5 | $ | 37.87 | ||||||||||||||||||||
Granted (2) | 0.1 | $ | 56.99 | ||||||||||||||||||||
| Vested | (0.2) | $ | 32.28 | ||||||||||||||||||||
| Unvested as of June 30, 2023 | 0.4 | $ | 47.51 | ||||||||||||||||||||
| Expected to vest after June 30, 2023 | 0.3 | $ | 46.85 | 1.4 | $ | 18 | |||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Income from continuing operations | $ | 282 | $ | 420 | $ | 552 | $ | 689 | |||||||||||||||
| Denominator for basic earnings per share—Weighted-average shares outstanding | 267.6 | 281.4 | 267.5 | 283.5 | |||||||||||||||||||
| Effect of dilutive securities: | |||||||||||||||||||||||
| RSUs | 0.4 | 0.5 | 0.6 | 0.7 | |||||||||||||||||||
| PSUs | 0.2 | 0.4 | 0.2 | 0.3 | |||||||||||||||||||
| Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding | 268.2 | 282.3 | 268.3 | 284.5 | |||||||||||||||||||
| Basic earnings per share from continuing operations | $ | 1.05 | $ | 1.49 | $ | 2.06 | $ | 2.43 | |||||||||||||||
Diluted earnings per share from continuing operations (1) | $ | 1.05 | $ | 1.49 | $ | 2.06 | $ | 2.42 | |||||||||||||||
| Three Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
| Foreign Currency Translation | Unrealized Gain (Loss) on Cash Flow Hedges | Unrealized Gain on Pension Plans | Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||
Balance as of April 1, 2023 | $ | (276) | $ | (17) | $ | 11 | $ | 2 | $ | (280) | ||||||||||||||||||||||
| Pretax income | 34 | 14 | — | — | 48 | |||||||||||||||||||||||||||
| Income tax effect | — | (3) | — | — | (3) | |||||||||||||||||||||||||||
| Reclassification of unrealized gain | — | (1) | — | — | (1) | |||||||||||||||||||||||||||
| Other comprehensive income from unconsolidated subsidiaries | — | — | — | 1 | 1 | |||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | (242) | $ | (7) | $ | 11 | $ | 3 | $ | (235) | ||||||||||||||||||||||
| Three Months Ended June 30, 2022 | ||||||||||||||||||||||||||
| Foreign Currency Translation | Unrealized Loss on Pension Plans | Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
| Balance as of April 1, 2022 | $ | (175) | $ | (24) | $ | (7) | $ | (206) | ||||||||||||||||||
| Pretax loss | (154) | — | — | (154) | ||||||||||||||||||||||
| Disposal of business | 4 | — | — | 4 | ||||||||||||||||||||||
| Other comprehensive income from unconsolidated subsidiaries | — | — | 1 | 1 | ||||||||||||||||||||||
| Balance as of June 30, 2022 | $ | (325) | $ | (24) | $ | (6) | $ | (355) | ||||||||||||||||||
Six Months Ended June 30, 2023 | ||||||||||||||||||||||||||||||||
| Foreign Currency Translation | Unrealized Gain (Loss) on Cash Flow Hedges | Unrealized Gain on Pension Plans | Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries | Accumulated Other Comprehensive Income (Loss) | ||||||||||||||||||||||||||||
| Balance as of January 1, 2023 | $ | (333) | $ | — | $ | 11 | $ | (1) | $ | (323) | ||||||||||||||||||||||
| Pretax income (loss) | 91 | (8) | — | — | 83 | |||||||||||||||||||||||||||
| Income tax effect | — | 2 | — | — | 2 | |||||||||||||||||||||||||||
| Reclassification of unrealized gain | — | (1) | — | — | (1) | |||||||||||||||||||||||||||
| Other comprehensive income from unconsolidated subsidiaries | — | — | — | 4 | 4 | |||||||||||||||||||||||||||
Balance as of June 30, 2023 | $ | (242) | $ | (7) | $ | 11 | $ | 3 | $ | (235) | ||||||||||||||||||||||
Six Months Ended June 30, 2022 | ||||||||||||||||||||||||||
| Foreign Currency Translation | Unrealized Loss on Pension Plans | Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||||||
| Balance as of January 1, 2022 | $ | (121) | $ | (24) | $ | (8) | $ | (153) | ||||||||||||||||||
| Pretax loss | (208) | — | — | (208) | ||||||||||||||||||||||
| Disposal of business | 4 | — | — | 4 | ||||||||||||||||||||||
| Other comprehensive income from unconsolidated subsidiaries | — | — | 2 | 2 | ||||||||||||||||||||||
| Balance as of June 30, 2022 | $ | (325) | $ | (24) | $ | (6) | $ | (355) | ||||||||||||||||||
June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||||||||
| Maturity Date | Interest Rate | Amount | Interest Rate | Amount | ||||||||||||||||||||||||||||
| Senior Unsecured Credit Agreement: | ||||||||||||||||||||||||||||||||
| Term loans payable | January 2026 | 6.45 | % | $ | 500 | — | % | $ | — | |||||||||||||||||||||||
| Revolving credit facilities | January 2028 | 5.37 | % | (1) | 1,226 | — | % | — | ||||||||||||||||||||||||
| Senior Secured Credit Agreement: | ||||||||||||||||||||||||||||||||
| Revolving credit facilities | January 2024 | — | % | — | 4.24 | % | (1) | 1,786 | ||||||||||||||||||||||||
| Senior Notes: | ||||||||||||||||||||||||||||||||
| U.S. Notes (2028) | June 2028 | 5.75 | % | 800 | — | % | — | |||||||||||||||||||||||||
| U.S. Notes (2033) | June 2033 | 6.25 | % | 600 | — | % | — | |||||||||||||||||||||||||
| Euro Notes (2024) | April 2024 | 3.88 | % | 545 | 3.88 | % | 535 | |||||||||||||||||||||||||
| Euro Notes (2028) | April 2028 | 4.13 | % | 273 | 4.13 | % | 268 | |||||||||||||||||||||||||
| Notes payable | Various through October 2030 | 3.62 | % | (1) | 14 | 3.25 | % | (1) | 16 | |||||||||||||||||||||||
| Finance lease obligations | 4.42 | % | (1) | 66 | 3.69 | % | (1) | 48 | ||||||||||||||||||||||||
| Other debt | 2.14 | % | (1) | 6 | 2.28 | % | (1) | 9 | ||||||||||||||||||||||||
| Total debt | 4,030 | 2,662 | ||||||||||||||||||||||||||||||
| Less: long-term debt issuance costs and unamortized bond discount | (30) | (6) | ||||||||||||||||||||||||||||||
| Total debt, net of debt issuance costs and unamortized bond discount | 4,000 | 2,656 | ||||||||||||||||||||||||||||||
| Less: current maturities, net of debt issuance costs | (579) | (34) | ||||||||||||||||||||||||||||||
| Long term debt, net of debt issuance costs and unamortized bond discount | $ | 3,421 | $ | 2,622 | ||||||||||||||||||||||||||||
| Notional Amount | Balance Sheet Caption | Fair Value - Asset / (Liability) | ||||||||||||||||||
| Interest rate swap agreements | $ | 700 | Other noncurrent assets | $ | 4 | |||||||||||||||
| June 30, 2023 | December 31, 2022 | |||||||||||||
| Assets: | ||||||||||||||
| Foreign currency forward contracts (Level 2) | $ | 46 | $ | — | ||||||||||
| Interest rate swaps (Level 2) | 4 | — | ||||||||||||
| Total Assets | $ | 50 | $ | — | ||||||||||
| Liabilities: | ||||||||||||||
| Contingent consideration liabilities (Level 3) | $ | 8 | $ | 7 | ||||||||||
| Total Liabilities | $ | 8 | $ | 7 | ||||||||||
| Wholesale - North America | Europe | Specialty | Self Service | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
| Three Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
| Third Party | $ | 1,199 | $ | 1,638 | $ | 442 | $ | 169 | $ | — | $ | 3,448 | |||||||||||||||||||||||
| Intersegment | — | — | 1 | — | (1) | — | |||||||||||||||||||||||||||||
| Total segment revenue | $ | 1,199 | $ | 1,638 | $ | 443 | $ | 169 | $ | (1) | $ | 3,448 | |||||||||||||||||||||||
| Segment EBITDA | $ | 248 | $ | 188 | $ | 42 | $ | 7 | $ | — | $ | 485 | |||||||||||||||||||||||
Total depreciation and amortization (1) | 20 | 39 | 8 | 3 | — | 70 | |||||||||||||||||||||||||||||
| Three Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
| Third Party | $ | 1,144 | $ | 1,477 | $ | 512 | $ | 208 | $ | — | $ | 3,341 | |||||||||||||||||||||||
| Intersegment | — | — | 1 | — | (1) | — | |||||||||||||||||||||||||||||
| Total segment revenue | $ | 1,144 | $ | 1,477 | $ | 513 | $ | 208 | $ | (1) | $ | 3,341 | |||||||||||||||||||||||
| Segment EBITDA | $ | 214 | $ | 160 | $ | 69 | $ | 32 | $ | — | $ | 475 | |||||||||||||||||||||||
Total depreciation and amortization (1) | 18 | 39 | 7 | 4 | — | 68 | |||||||||||||||||||||||||||||
| Wholesale - North America | Europe | Specialty | Self Service | Eliminations | Consolidated | ||||||||||||||||||||||||||||||
| Six Months Ended June 30, 2023 | |||||||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
| Third Party | $ | 2,428 | $ | 3,193 | $ | 838 | $ | 338 | $ | — | $ | 6,797 | |||||||||||||||||||||||
| Intersegment | — | — | 2 | — | (2) | — | |||||||||||||||||||||||||||||
| Total segment revenue | $ | 2,428 | $ | 3,193 | $ | 840 | $ | 338 | $ | (2) | $ | 6,797 | |||||||||||||||||||||||
| Segment EBITDA | $ | 500 | $ | 339 | $ | 73 | $ | 29 | $ | — | $ | 941 | |||||||||||||||||||||||
Total depreciation and amortization (1) | 39 | 73 | 16 | 7 | — | 135 | |||||||||||||||||||||||||||||
| Six Months Ended June 30, 2022 | |||||||||||||||||||||||||||||||||||
| Revenue: | |||||||||||||||||||||||||||||||||||
| Third Party | $ | 2,345 | $ | 2,965 | $ | 972 | $ | 407 | $ | — | $ | 6,689 | |||||||||||||||||||||||
| Intersegment | — | — | 2 | — | (2) | — | |||||||||||||||||||||||||||||
| Total segment revenue | $ | 2,345 | $ | 2,965 | $ | 974 | $ | 407 | $ | (2) | $ | 6,689 | |||||||||||||||||||||||
| Segment EBITDA | $ | 432 | $ | 291 | $ | 127 | $ | 72 | $ | — | $ | 922 | |||||||||||||||||||||||
Total depreciation and amortization (1) | 37 | 73 | 15 | 8 | — | 133 | |||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Net income | $ | 282 | $ | 420 | $ | 552 | $ | 693 | |||||||||||||||
| Less: net income attributable to continuing noncontrolling interest | 1 | — | 1 | — | |||||||||||||||||||
| Net income attributable to LKQ stockholders | 281 | 420 | 551 | 693 | |||||||||||||||||||
| Less: net income from discontinued operations | — | — | — | 4 | |||||||||||||||||||
| Net income from continuing operations attributable to LKQ stockholders | 281 | 420 | 551 | 689 | |||||||||||||||||||
| Adjustments - continuing operations attributable to LKQ stockholders: | |||||||||||||||||||||||
| Depreciation and amortization | 70 | 68 | 135 | 133 | |||||||||||||||||||
| Interest expense, net of interest income | 42 | 14 | 75 | 29 | |||||||||||||||||||
| Loss on debt extinguishment | — | — | 1 | — | |||||||||||||||||||
| Provision for income taxes | 109 | 127 | 203 | 216 | |||||||||||||||||||
Equity in earnings of unconsolidated subsidiaries (1) | (2) | (4) | (5) | (6) | |||||||||||||||||||
Gains on foreign exchange contracts - acquisition related (2) | (23) | — | (46) | — | |||||||||||||||||||
| Equity investment fair value adjustments | — | 2 | 1 | 3 | |||||||||||||||||||
Restructuring and transaction related expenses (3) | 8 | 4 | 26 | 7 | |||||||||||||||||||
Gain on disposal of businesses (4) | — | (155) | — | (155) | |||||||||||||||||||
| Losses on previously held equity interests | — | — | — | 1 | |||||||||||||||||||
Direct impacts of Ukraine/Russia conflict (5) | — | (1) | — | 5 | |||||||||||||||||||
| Segment EBITDA | $ | 485 | $ | 475 | $ | 941 | $ | 922 | |||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Capital Expenditures | |||||||||||||||||||||||
Wholesale - North America | $ | 16 | $ | 16 | $ | 36 | $ | 45 | |||||||||||||||
| Europe | 23 | 19 | 56 | 42 | |||||||||||||||||||
| Specialty | 5 | 4 | 18 | 8 | |||||||||||||||||||
| Self Service | 22 | 1 | 26 | 4 | |||||||||||||||||||
| Total capital expenditures | $ | 66 | $ | 40 | $ | 136 | $ | 99 | |||||||||||||||
| June 30, 2023 | December 31, 2022 | ||||||||||
| Receivables, net of allowance for credit losses | |||||||||||
Wholesale - North America | $ | 399 | $ | 351 | |||||||
| Europe | 700 | 547 | |||||||||
| Specialty | 147 | 92 | |||||||||
| Self Service | 11 | 8 | |||||||||
| Total receivables, net of allowance for credit losses | 1,257 | 998 | |||||||||
| Inventories | |||||||||||
Wholesale - North America | 857 | 822 | |||||||||
| Europe | 1,381 | 1,418 | |||||||||
| Specialty | 390 | 469 | |||||||||
| Self Service | 53 | 43 | |||||||||
| Total inventories | 2,681 | 2,752 | |||||||||
| Property, plant and equipment, net | |||||||||||
Wholesale - North America | 502 | 505 | |||||||||
| Europe | 587 | 547 | |||||||||
| Specialty | 101 | 94 | |||||||||
| Self Service | 108 | 90 | |||||||||
| Total property, plant and equipment, net | 1,298 | 1,236 | |||||||||
| Operating lease assets, net | |||||||||||
Wholesale - North America | 566 | 541 | |||||||||
| Europe | 484 | 466 | |||||||||
| Specialty | 85 | 85 | |||||||||
| Self Service | 142 | 135 | |||||||||
| Total operating lease assets, net | 1,277 | 1,227 | |||||||||
| Other unallocated assets | 7,642 | 5,825 | |||||||||
| Total assets | $ | 14,155 | $ | 12,038 | |||||||
| June 30, 2023 | December 31, 2022 | ||||||||||
Long-lived assets | |||||||||||
| United States | $ | 1,420 | $ | 1,371 | |||||||
| Germany | 309 | 290 | |||||||||
| United Kingdom | 272 | 256 | |||||||||
| Other countries | 574 | 546 | |||||||||
| Total long-lived assets | $ | 2,575 | $ | 2,463 | |||||||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||
| 2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
| Revenue | 100.0 | % | 100.0 | % | 100.0 | % | 100.0 | % | |||||||||||||||
| Cost of goods sold | 59.0 | % | 59.1 | % | 59.0 | % | 59.3 | % | |||||||||||||||
| Gross margin | 41.0 | % | 40.9 | % | 41.0 | % | 40.7 | % | |||||||||||||||
| Selling, general and administrative expenses | 27.2 | % | 26.8 | % | 27.5 | % | 27.2 | % | |||||||||||||||
| Restructuring and transaction related expenses | 0.2 | % | 0.1 | % | 0.4 | % | 0.1 | % | |||||||||||||||
Gain on disposal of businesses | — | % | (4.6) | % | — | % | (2.3) | % | |||||||||||||||
| Depreciation and amortization | 1.8 | % | 1.8 | % | 1.7 | % | 1.8 | % | |||||||||||||||
| Operating income | 11.8 | % | 16.7 | % | 11.4 | % | 13.9 | % | |||||||||||||||
| Total other expense, net | 0.5 | % | 0.5 | % | 0.3 | % | 0.5 | % | |||||||||||||||
| Income from continuing operations before provision for income taxes | 11.3 | % | 16.3 | % | 11.0 | % | 13.4 | % | |||||||||||||||
| Provision for income taxes | 3.2 | % | 3.8 | % | 3.0 | % | 3.2 | % | |||||||||||||||
| Equity in earnings of unconsolidated subsidiaries | — | % | 0.1 | % | 0.1 | % | 0.1 | % | |||||||||||||||
| Income from continuing operations | 8.2 | % | 12.6 | % | 8.1 | % | 10.3 | % | |||||||||||||||
| Net income from discontinued operations | — | % | — | % | — | % | 0.1 | % | |||||||||||||||
| Net income | 8.2 | % | 12.6 | % | 8.1 | % | 10.4 | % | |||||||||||||||
| Less: net income attributable to continuing noncontrolling interest | — | % | — | % | — | % | — | % | |||||||||||||||
| Net income attributable to LKQ stockholders | 8.1 | % | 12.6 | % | 8.1 | % | 10.4 | % | |||||||||||||||
| Three Months Ended June 30, | Percentage Change in Revenue | ||||||||||||||||||||||||||||||||||
| 2023 | 2022 | Organic | Acquisition and Divestiture | Foreign Exchange | Total Change | ||||||||||||||||||||||||||||||
| Parts & services revenue | $ | 3,259 | $ | 3,092 | 4.8 | % | — | % | 0.6 | % | 5.4 | % | |||||||||||||||||||||||
| Other revenue | 189 | 249 | (19.4) | % | (4.3) | % | (0.2) | % | (23.9) | % | |||||||||||||||||||||||||
| Total revenue | $ | 3,448 | $ | 3,341 | 3.0 | % | (0.4) | % | 0.5 | % | 3.2 | % | |||||||||||||||||||||||
| Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | |||||||||||||||||
| 2023 | 2022 | Change | |||||||||||||||
| Restructuring expenses | $ | 2 | (1) | $ | 3 | (2) | $ | (1) | |||||||||
| Transaction related expenses | 6 | (3) | 1 | (3) | 5 | ||||||||||||
| Restructuring and transaction related expenses | $ | 8 | $ | 4 | $ | 4 | |||||||||||
| Three Months Ended June 30, | ||||||||||||||||||||
| 2023 | 2022 | Change | ||||||||||||||||||
| Depreciation | $ | 38 | $ | 34 | $ | 4 | (1) | |||||||||||||
| Amortization | 23 | 27 | (4) | (2) | ||||||||||||||||
| Depreciation and amortization | $ | 61 | $ | 61 | $ | — | ||||||||||||||
| Three Months Ended June 30, | ||||||||||||||||||||
| 2023 | 2022 | Change | ||||||||||||||||||
| Interest expense | $ | 52 | $ | 16 | $ | 36 | (1) | |||||||||||||
Gains on foreign exchange contracts - acquisition related (2) | (23) | — | (23) | |||||||||||||||||
| Interest income and other income, net | (11) | — | (11) | (3) | ||||||||||||||||
| Total other expense, net | $ | 18 | $ | 16 | $ | 2 | ||||||||||||||
| Six Months Ended June 30, | Percentage Change in Revenue | ||||||||||||||||||||||||||||||||||
| 2023 | 2022 | Organic | Acquisition and Divestiture | Foreign Exchange | Total Change | ||||||||||||||||||||||||||||||
| Parts & services revenue | $ | 6,411 | $ | 6,196 | 6.4 | % | (1.7) | % | (1.2) | % | 3.5 | % | |||||||||||||||||||||||
| Other revenue | 386 | 493 | (16.7) | % | (4.6) | % | (0.3) | % | (21.6) | % | |||||||||||||||||||||||||
| Total revenue | $ | 6,797 | $ | 6,689 | 4.7 | % | (1.9) | % | (1.1) | % | 1.6 | % | |||||||||||||||||||||||
| Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||||||||
| 2023 | 2022 | Change | |||||||||||||||
| Restructuring expenses | $ | 10 | (1) | $ | 3 | (2) | $ | 7 | |||||||||
| Transaction related expenses | 16 | (3) | 4 | (3) | 12 | ||||||||||||
| Restructuring and transaction related expenses | $ | 26 | $ | 7 | $ | 19 | |||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||
| 2023 | 2022 | Change | ||||||||||||||||||
| Depreciation | $ | 74 | $ | 70 | $ | 4 | (1) | |||||||||||||
| Amortization | 45 | 50 | (5) | (2) | ||||||||||||||||
| Depreciation and amortization | $ | 119 | $ | 120 | $ | (1) | ||||||||||||||
| Six Months Ended June 30, | ||||||||||||||||||||
| 2023 | 2022 | Change | ||||||||||||||||||
| Interest expense | $ | 88 | $ | 32 | $ | 56 | (1) | |||||||||||||
Gains on foreign exchange contracts - acquisition related (2) | (46) | — | (46) | |||||||||||||||||
| Interest income and other income, net | (20) | (1) | (19) | (3) | ||||||||||||||||
| Total other expense, net | $ | 22 | $ | 31 | $ | (9) | ||||||||||||||
| Three Months Ended June 30, | Percentage Change in Revenue | ||||||||||||||||||||||||||||||||||
Wholesale - North America | 2023 | 2022 | Organic | Acquisition and Divestiture | Foreign Exchange | Total Change | |||||||||||||||||||||||||||||
| Parts & services revenue | $ | 1,121 | $ | 1,050 | 8.3 | % | (1) | (1.3) | % | (3) | (0.3) | % | 6.7 | % | |||||||||||||||||||||
| Other revenue | 78 | 94 | (16.5) | % | (2) | 0.1 | % | (0.3) | % | (16.7) | % | ||||||||||||||||||||||||
| Total third party revenue | $ | 1,199 | $ | 1,144 | 6.3 | % | (1.2) | % | (0.3) | % | 4.7 | % | |||||||||||||||||||||||
| Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Percentage Change in Revenue | ||||||||||||||||||||||||||||||||||
| Europe | 2023 | 2022 | Organic | Acquisition and Divestiture | Foreign Exchange (2) | Total Change | |||||||||||||||||||||||||||||
| Parts & services revenue | $ | 1,633 | $ | 1,470 | 8.5 | % | (1) | 0.9 | % | 1.6 | % | 11.1 | % | ||||||||||||||||||||||
| Other revenue | 5 | 7 | (24.1) | % | (0.2) | % | (1.9) | % | (26.2) | % | |||||||||||||||||||||||||
| Total third party revenue | $ | 1,638 | $ | 1,477 | 8.4 | % | 0.9 | % | 1.6 | % | 10.9 | % | |||||||||||||||||||||||
| Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||||||||||||||||||||||||||
| Three Months Ended June 30, | Percentage Change in Revenue | ||||||||||||||||||||||||||||||||||
| Specialty | 2023 | 2022 | Organic (1) | Acquisition and Divestiture | Foreign Exchange | Total Change | |||||||||||||||||||||||||||||
| Parts & services revenue | $ | 442 | $ | 512 | (12.9) | % | (0.2) | % | (0.5) | % | (13.5) | % | |||||||||||||||||||||||
| Other revenue | — | — | — | % | — | % | — | % | — | % | |||||||||||||||||||||||||
| Total third party revenue | $ | 442 | $ | 512 | (12.9) | % | (0.2) | % | (0.5) | % | (13.5) | % | |||||||||||||||||||||||
| Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||||||||||||||||||||||||||
| Specialty | Percentage of Total Segment Revenue | ||||||||||
Segment EBITDA for the three months ended June 30, 2022 | 13.4 | % | |||||||||
| Increase (decrease) due to: | |||||||||||
| Change in gross margin | (3.7) | % | (1) | ||||||||
| Change in segment operating expenses | (0.2) | % | (2) | ||||||||
Segment EBITDA for the three months ended June 30, 2023 | 9.5 | % | |||||||||
Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||
| Three Months Ended June 30, | Percentage Change in Revenue | ||||||||||||||||||||||||||||||||||
Self Service | 2023 | 2022 | Organic | Acquisition and Divestiture (3) | Foreign Exchange | Total Change | |||||||||||||||||||||||||||||
| Parts & services revenue | $ | 63 | $ | 60 | 4.7 | % | (1) | — | % | — | % | 4.7 | % | ||||||||||||||||||||||
| Other revenue | 106 | 148 | (20.9) | % | (2) | (7.3) | % | — | % | (28.3) | % | ||||||||||||||||||||||||
| Total third party revenue | $ | 169 | $ | 208 | (13.6) | % | (5.2) | % | — | % | (18.8) | % | |||||||||||||||||||||||
| Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | Percentage Change in Revenue | ||||||||||||||||||||||||||||||||||
| Wholesale - North America | 2023 | 2022 | Organic | Acquisition and Divestiture | Foreign Exchange | Total Change | |||||||||||||||||||||||||||||
| Parts & services revenue | $ | 2,269 | $ | 2,156 | 11.4 | % | (1) | (5.9) | % | (3) | (0.3) | % | 5.2 | % | |||||||||||||||||||||
| Other revenue | 159 | 189 | (15.4) | % | (2) | — | % | (0.3) | % | (15.7) | % | ||||||||||||||||||||||||
| Total third party revenue | $ | 2,428 | $ | 2,345 | 9.3 | % | (5.4) | % | (0.3) | % | 3.5 | % | |||||||||||||||||||||||
| Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | Percentage Change in Revenue | ||||||||||||||||||||||||||||||||||
| Europe | 2023 | 2022 | Organic | Acquisition and Divestiture | Foreign Exchange (2) | Total Change | |||||||||||||||||||||||||||||
| Parts & services revenue | $ | 3,181 | $ | 2,951 | 9.1 | % | (1) | 0.8 | % | (2.2) | % | 7.8 | % | ||||||||||||||||||||||
| Other revenue | 12 | 14 | (12.7) | % | — | % | (5.0) | % | (17.6) | % | |||||||||||||||||||||||||
| Total third party revenue | $ | 3,193 | $ | 2,965 | 9.0 | % | 0.8 | % | (2.2) | % | 7.7 | % | |||||||||||||||||||||||
| Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||||||||||||||||||||||||||
| Six Months Ended June 30, | Percentage Change in Revenue | ||||||||||||||||||||||||||||||||||
| Specialty | 2023 | 2022 | Organic (1) | Acquisition and Divestiture | Foreign Exchange | Total Change | |||||||||||||||||||||||||||||
| Parts & services revenue | $ | 838 | $ | 972 | (13.2) | % | (0.1) | % | (0.5) | % | (13.7) | % | |||||||||||||||||||||||
| Other revenue | — | — | — | % | — | % | — | % | — | % | |||||||||||||||||||||||||
| Total third party revenue | $ | 838 | $ | 972 | (13.2) | % | (0.1) | % | (0.5) | % | (13.7) | % | |||||||||||||||||||||||
| Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||||||||||||||||||||||||||
| Specialty | Percentage of Total Segment Revenue | ||||||||||
Segment EBITDA for the six months ended June 30, 2022 | 13.1 | % | |||||||||
| Increase (decrease) due to: | |||||||||||
| Change in gross margin | (3.5) | % | (1) | ||||||||
| Change in segment operating expenses | (0.9) | % | (2) | ||||||||
Segment EBITDA for the six months ended June 30, 2023 | 8.7 | % | |||||||||
Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||
| Six Months Ended June 30, | Percentage Change in Revenue | ||||||||||||||||||||||||||||||||||
| Self Service | 2023 | 2022 | Organic | Acquisition and Divestiture (3) | Foreign Exchange | Total Change | |||||||||||||||||||||||||||||
| Parts & services revenue | $ | 123 | $ | 117 | 4.8 | % | (1) | — | % | — | % | 4.8 | % | ||||||||||||||||||||||
| Other revenue | 215 | 290 | (17.8) | % | (2) | (7.8) | % | — | % | (25.6) | % | ||||||||||||||||||||||||
| Total third party revenue | $ | 338 | $ | 407 | (11.3) | % | (5.6) | % | — | % | (16.9) | % | |||||||||||||||||||||||
| Note: In the table above, the sum of the individual percentages may not equal the total due to rounding. | |||||||||||||||||||||||||||||||||||
Adjusted(7) | Adjusted(5) | |||||||||||||||||||||||||
| June 30, 2023 | June 30, 2023 | December 31, 2022 | December 31, 2022 | |||||||||||||||||||||||
| Cash and cash equivalents | $ | 519 | $ | 1,904 | (3) | $ | 278 | $ | 278 | |||||||||||||||||
| Total debt | 2,645 | (4) | 4,030 | (4) | 2,662 | (6) | 2,662 | (4) | ||||||||||||||||||
Current maturities (1) | 579 | 579 | 34 | 34 | ||||||||||||||||||||||
Capacity under credit facilities (2) | 2,000 | 2,000 | 2,000 | 3,150 | ||||||||||||||||||||||
Availability under credit facilities (2) | 700 | 700 | 645 | 1,295 | ||||||||||||||||||||||
| Total liquidity (cash and cash equivalents plus availability under credit facilities) | 1,219 | 2,604 | (3) | 923 | 1,573 | |||||||||||||||||||||
| Dividend Amount | Declaration Date | Record Date | Payment Date | |||||||||||||||||
| $0.275 | February 21, 2023 | March 16, 2023 | March 30, 2023 | |||||||||||||||||
| $0.275 | April 25, 2023 | May 18, 2023 | June 1, 2023 | |||||||||||||||||
| Covenant Level | Ratio Achieved as of June 30, 2023 | ||||||||||
| Maximum total leverage ratio | 4.00 : 1.00 | 2.3 | |||||||||
| Minimum interest coverage ratio | 3.00 : 1.00 | 15.4 | |||||||||
| Amount | |||||
Six months ending December 31, 2023 (1) | $ | 22 | |||
| Years ending December 31: | |||||
| 2024 | 571 | ||||
| 2025 | 13 | ||||
| 2026 | 507 | ||||
| 2027 | 6 | ||||
| Thereafter | 2,911 | ||||
Total debt (2) | $ | 4,030 | |||
| Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||||||||||||||||||||||||||||||
| 2023 | 2022 | Change | 2023 | 2022 | Change | ||||||||||||||||||||||||||||||||||||
Wholesale - North America | $ | 263 | $ | 302 | $ | (39) | $ | 536 | $ | 619 | $ | (83) | (1) | ||||||||||||||||||||||||||||
| Europe | 914 | 924 | (10) | 1,834 | 1,879 | (45) | (2) | ||||||||||||||||||||||||||||||||||
| Specialty | 309 | 306 | 3 | 560 | 709 | (149) | (3) | ||||||||||||||||||||||||||||||||||
| Total | $ | 1,486 | $ | 1,532 | $ | (46) | $ | 2,930 | $ | 3,207 | $ | (277) | |||||||||||||||||||||||||||||
| Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||||||||||||||||||||||||||
| 2023 | 2022 | % Change | 2023 | 2022 | % Change | |||||||||||||||||||||||||||||||||
| Wholesale - North America salvage vehicles | 65 | 65 | — | % | 129 | 125 | 3.2 | % | ||||||||||||||||||||||||||||||
| Europe wholesale salvage vehicles | 7 | 8 | (12.5) | % | 15 | 16 | (6.3) | % | ||||||||||||||||||||||||||||||
| Self Service salvage vehicles | 143 | 139 | 2.9 | % | 280 | 274 | 2.2 | % | ||||||||||||||||||||||||||||||
| Six Months Ended June 30, | |||||||||||
| 2023 | 2022 | ||||||||||
| Net cash provided by operating activities | $ | 703 | $ | 737 | |||||||
| Less: purchases of property, plant and equipment | 136 | 99 | |||||||||
| Free cash flow | $ | 567 | $ | 638 | |||||||
| Exhibit | Description | |||||||
4.1* | Indenture dated as of May 24, 2023 among LKQ Corporation, as Issuer, the Guarantors, and U.S. Bank Trust Company, National Association, as Trustee (incorporated herein by reference to Exhibit 4.1 to the Company’s report on Form 8-K filed with the SEC on May 26, 2023). | |||||||
| Registration Rights Agreement dated as of May 24, 2023 among LKQ Corporation, as Issuer, the Guarantors, BofA Securities, Inc. and Wells Fargo Securities, LLC, as representatives of the initial purchasers named therein (incorporated herein by reference to Exhibit 10.1 to the Company’s report on Form 8-K filed with the SEC on May 26, 2023). | ||||||||
| 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. | ||||||||
| 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. | ||||||||
| 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. | ||||||||
| 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 | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | |||||||
| 101.SCH | Inline XBRL Taxonomy Extension Schema Document | |||||||
| 101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | |||||||
| 101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | |||||||
| 101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | |||||||
| 101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
| LKQ CORPORATION | |||||
| /s/ Rick Galloway | |||||
Rick Galloway | |||||
| Senior Vice President and Chief Financial Officer | |||||
| (As duly authorized officer and Principal Financial Officer) | |||||
| /s/ Michael S. Clark | |||||
Michael S. Clark | |||||
| Vice President - Finance and Controller | |||||
| (As duly authorized officer and Principal Accounting Officer) | |||||
| /s/ DOMINICK ZARCONE | |||||
| Dominick Zarcone | |||||
| President and Chief Executive Officer | |||||
/S/ RICK GALLOWAY | |||||
| Rick Galloway | |||||
| Senior Vice President and Chief Financial Officer | |||||
/S/ DOMINICK ZARCONE | |||||
| Dominick Zarcone | |||||
| President and Chief Executive Officer | |||||
/S/ RICK GALLOWAY | |||||
| Rick Galloway | |||||
| Senior Vice President and Chief Financial Officer | |||||