LKQ Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>LKQ Corporation has filed its 2023 annual report (10-K) detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

LKQ CORP (LKQ) filed a Annual Report (10-K) with the SEC on February 22, 2024. LKQ Corporation filed its annual report for the fiscal year ended December 31, 2023. The filing covers the period from January 1, 2023, to December 31, 2023. The company's principal executive offices are located at 500 West Madison Street, Suite 2800, Chicago, IL 60661. LKQ Corp is listed on the Nasdaq stock exchange. The filing includes information related to various financial instruments and debt, such as US Notes 2028-2033 and Euro Notes 2026.

Why It Matters

For investors and stakeholders tracking LKQ CORP, this filing contains several important signals. This 10-K filing provides a comprehensive overview of LKQ Corp's financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors assessing the company's performance and future outlook. The detailed financial data within the report, including information on revenue, debt, and equity, allows stakeholders to evaluate the company's stability and growth potential in the automotive wholesale sector.

Risk Assessment

Risk Level: medium — LKQ CORP shows moderate risk based on this filing. The company's financial performance is subject to market conditions and operational execution, as indicated by the detailed financial statements and risk factors presented in the 10-K filing.

Analyst Insight

Investors should review the detailed financial statements and risk factors in the 10-K to understand LKQ Corp's performance and potential challenges in the automotive wholesale market.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-22 — Filing Date (Filed as of date)
• 5010 — SIC Code (Standard Industrial Classification)

Key Players & Entities

• LKQ CORP (company) — Filer name
• 20231231 (date) — Conformed period of report
• 20240222 (date) — Filed as of date
• 500 WEST MADISON STREET (address) — Business address street 1
• CHICAGO (city) — Business address city
• IL (state) — Business address state
• 60661 (zip_code) — Business address zip
• Nasdaq (exchange) — Stock exchange

FAQ

Industry Context

LKQ Corporation operates in the wholesale-motor vehicles and motor vehicle parts & supplies industry (SIC 5010).

Regulatory Implications

The filing is made under the Securities Exchange Act of 1934, requiring public companies to disclose material information about their business, financial condition, and operations.

What Investors Should Do

1. Review LKQ Corp's 2023 financial statements for revenue, net income, and other key performance indicators.
2. Analyze the risk factors section to understand potential challenges and uncertainties facing the company.
3. Examine the company's debt structure and cash position as detailed in the financial footnotes.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-02-22: Filing Date — Date the 10-K report was officially submitted to the SEC.

Year-Over-Year Comparison

This is the initial 10-K filing for the fiscal year 2023, following previous filings for prior fiscal years.

Filing Documents

• lkq-20231231.htm (10-K) — 2901KB
• lkq-ex421_20231231.htm (EX-4.21) — 30KB
• lkq-ex107_20231231.htm (EX-10.7) — 39KB
• lkq-ex1023_20231231.htm (EX-10.23) — 162KB
• lkq-ex1024_20231231.htm (EX-10.24) — 162KB
• lkq-ex211_20231231.htm (EX-21.1) — 124KB
• lkq-ex231_20231231.htm (EX-23.1) — 3KB
• lkq-ex311_20231231.htm (EX-31.1) — 10KB
• lkq-ex312_20231231.htm (EX-31.2) — 10KB
• lkq-ex321_20231231.htm (EX-32.1) — 5KB
• lkq-ex322_20231231.htm (EX-32.2) — 5KB
• lkq-ex971_20231231.htm (EX-97.1) — 30KB
• lkq-20231231_g1.jpg (GRAPHIC) — 83KB
• 0001065696-24-000009.txt (&nbsp;) — 16347KB
• lkq-20231231.xsd (EX-101.SCH) — 106KB
• lkq-20231231_cal.xml (EX-101.CAL) — 68KB
• lkq-20231231_def.xml (EX-101.DEF) — 686KB
• lkq-20231231_lab.xml (EX-101.LAB) — 1251KB
• lkq-20231231_pre.xml (EX-101.PRE) — 871KB
• lkq-20231231_htm.xml (XML) — 2811KB

Risk Factors

Item 1A. Risk Factors 14

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 28

Cybersecurity

Item 1C. Cybersecurity 29

Properties

Item 2. Properties 30

Legal Proceedings

Item 3. Legal Proceedings 31

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 31 PART II

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 32

[RESERVED]

Item 6. [RESERVED] 34

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 35

Quantitative and Qualitative Disclosures About Market Risk

Item 7A. Quantitative and Qualitative Disclosures About Market Risk 53

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 56

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 103

Controls and Procedures

Item 9A. Controls and Procedures 103

Other Information

Item 9B. Other Information 104

Disclosure Regarding Foreign Jurisdictions that Prevent Inspections

Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 104 PART III

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 105

Executive Compensation

Item 11. Executive Compensation 107

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 107

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 107

Principal Accountant Fees and Services

Item 14. Principal Accountant Fees and Services 107 PART IV

Exhibits and Financial Statement Schedules

Item 15. Exhibits and Financial Statement Schedules 108

Form 10-K Summary

Item 16. Form 10-K Summary 113

Signatures

Signatures 114 PART I SPECIAL NOTE ON FORWARD-LOOKING STATEMENTS Forward-looking statements include, but are not limited to, statements regarding our outlook, guidance, expectations, beliefs, hopes, intentions and strategies. Words such as "may," "will," "plan," "should," "expect," "anticipate," "believe," "if," "estimate," "intend," "project" and similar words or expressions are used to identify these forward-looking statements. These statements are subject to a number of risks, uncertainties, assumptions and other factors that may cause our actual results, performance or achievements to be materially different. All forward-looking statements are based on information available to us at the time the statements are made. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. You should not place undue reliance on our forward-looking statements. Actual events or results may differ materially from those expressed or implied in the forward-looking statements. The risks, uncertainties, assumptions and other factors that could cause actual results to differ from the results predicted or implied by our forward-looking statements include those identified in the sections entitled "Risk Factors" in Part 1A and "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 7 of this Annual Report on Form 10-K. Copies of our Annual Report on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Securities Exchange Act of 1934 are available free of charge through

BUSINESS

ITEM 1. BUSINESS OVERVIEW LKQ Corporation ("LKQ," the "Company" or "we"), a member of the Standard & Poor's 500 Stock In dex ("S&P 500 Index") , is a global distributor of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, and specialty aftermarket products and accessories to improve the performance, functionality and appearance of vehicles. Buyers of vehicle replacement products have the option to purchase from primarily five sources: new products produced by original equipment manufacturers ("OEMs"); new products produced by companies other than the OEMs, which are referred to as aftermarket products; recycled products obtained from salvage and total loss vehicles; recycled products that have been refurbished; and recycled products that have been remanufactured. We distribute a variety of products to collision and mechanical repair shops, including aftermarket collision and mechanical products; recycled collision and mechanical products; refurbished collision products such as wheels, bumper covers and lights; and remanufactured engines and transmissions. Collectively, we refer to the four sources that are not new OEM products as alternative parts. Our Wholesale - North America segment is a leading provider of alternative vehicle collision replacement products, paint and related products, and alternative vehicle mechanical replacement products, with our sales, processing, and distribution facilities reaching most major markets in the United States and Canada. Our Europe segment is a leading provider of alternative vehicle replacement and maintenance products in Germany, the United Kingdom ("U.K."), the Benelux region (Belgium, Netherlands, and Luxembourg), Italy, Czech Republic, Austria, Slovakia, Poland, and various other European countries. Our Specialty segment is a leading distributor of specialty vehicle aftermarket equipment and accessories reaching most major markets in the U.S. and C

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View this 10-K filing on SEC EDGAR