LKQ CORP 10-Q

Item 1A. Risk Factors The statements in this section describe the known material risks to our business and should be considered carefully. The risk factor below updates our risk factors previously discussed in our Annual Report on Form 10-K for the year ended December 31, 2021. Our operating results have been and will likely continue to be adversely affected by the Russian invasion of Ukraine and the resulting governmental sanctions imposed on Russia. The Russian invasion of Ukraine and resulting global governmental response have impacted, and are expected to continue to impact, our business. Governmental sanctions imposed on Russia have restricted our ability to sell and collect from customers based in Russia, and Russian military activity in Ukrainian territory has changed the way in which we operate in Ukraine. Since the invasion, many of our 45 branches in Ukraine have remained open, although operating at less than full capacity due to supply chain and other issues, while other branches have temporarily ceased operating due to the invasion. We expect to continue operating in this manner; however, the extent and duration of the military action, resulting sanctions and future market disruptions in the region are difficult to predict. Moreover, the ongoing effects of the hostilities and sanctions may not be limited to Russia and Russian companies and may negatively impact other regional and global economic markets of the world, including Europe and the United States. The ongoing military action, along with the potential for a wider conflict, could further increase financial market volatility and cause negative effects on regional and global economic markets, industries, and companies, such as LKQ and our suppliers and customers.