25 unchanged sentences
and Self Service, each of which is presented as a reportable segment.
−Removed: 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.
+Added: Our Wholesale - North America segment is a leading provider of alternative vehicle collision replacement products, paint and related body repair 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 U.K., the Benelux region (Belgium, Netherlands, and Luxembourg), Italy, Czech Republic, Austria, Slovakia, Poland, and various other European countries.
8 unchanged sentences
Since our inception in 1998, we have pursued a growth strategy through both organic growth and acquisitions.
−Removed: Through 2018, our acquisition strategy was focused on consolidation to build scale in fragmented markets across North America and Europe.
−Removed: We targeted companies that were market leaders, expanded our geographic presence and enhanced our ability to provide a wide array of vehicle products through our distribution network.
−Removed: In the last few years, we have shifted our focus to acquisitions that target high synergies and/or add critical capabilities, including the Uni-Select Acquisition completed in August 2023 that complements our existing North American paint distribution operations and provides a scaled position in the Canadian mechanical parts space, with opportunity for future consolidation and growth.
−Removed: Additionally, we have made investments in various businesses to advance our strategic objectives.
+Added: Our current acquisition strategy focuses on acquisitions which are highly accretive, synergistic and/or add critical capabilities.
+Added: Additionally, from time to time, we make investments in various businesses to advance our strategic objectives.
See Note 2, "Business Combinations," and Note 6, "Equity Method Investments," to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for additional information related to our acquisitions and investments.
4 unchanged sentences
Our service revenue is generated primarily from the sale of service-type warranties, fees for admission to our self service yards, and diagnostic and repair services.
−Removed: Revenue from other sources includes scrap and other metals (including precious metals - platinum, palladium and rhodium - contained in recycled parts such as catalytic converters) sales, bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from our furnace operations.
+Added: Revenue from other sources includes sales of scrap and other metals (including precious metals - platinum, palladium and rhodium - contained in recycled parts such as catalytic converters), bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from our furnace operations.
Other revenue will vary from period to period based on fluctuations in commodity prices and the volume of materials sold.
4 unchanged sentences
Our 2023 Form 10-K includes a summary of the critical accounting estimates we believe are the most important to aid in understanding our financial results.
−Removed: There have been no changes to those critical accounting estimates that have had a material impact on our reported amounts of assets, liabilities, revenues or expenses during the three months ended March 31, 2024.
+Added: There have been no changes to those critical accounting estimates that have had a material impact on our reported amounts of assets, liabilities, revenues or expenses during the six months ended June 30, 2024.
Recently Issued Accounting Pronouncements
13 unchanged sentences
We are executing on the various projects associated with the 1 LKQ Europe plan and expect to be completed by the end of 2027.
−Removed: During the three months ended March 31, 2024, we incurred $8 million in costs across all three categories noted above.
+Added: During the three and six months ended June 30, 2024, we incurred $11 million and $19 million, respectively, in costs across all three categories noted above.
We expect that costs of the plan, reflecting all three categories noted above, will range between $125 million to $155 million for 2024 through the projected plan completion date in 2027.
3 unchanged sentences
We believe that organic revenue growth, Segment EBITDA and free cash flow are key performance indicators for our business.
−Removed: Segment EBITDA is our key measure of segment profit or loss reviewed by our chief operating decision maker.
+Added: Segment EBITDA is our key measure of segment profit or loss reviewed by our CODM.
Free cash flow is a financial measure that is not prepared in accordance with U.S.
11 unchanged sentences
The following table sets forth statements of income data as a percentage of total revenue for the periods indicated:
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2024 2023 2024 2023
Revenue 100.0 % 100.0 % 100.0 % 100.0 %
8 unchanged sentences
Provision for income taxes 2.2 % 3.2 % 2.1 % 3.0 %
−Removed: Equity in (losses) earnings of unconsolidated subsidiaries (0.1) % 0.1 %
+Added: Equity in earnings of unconsolidated subsidiaries — % — % — % 0.1 %
Net income 5.0 % 8.2 % 4.6 % 8.1 %
+Added: net income attributable to noncontrolling interest — % — % — % — %
+Added: Net income attributable to LKQ stockholders 5.0 % 8.1 % 4.6 % 8.1 %
In the table above, the sum of the individual percentages may not equal the total due to rounding.
−Removed: Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023
+Added: Three Months Ended June 30, 2024 Compared to Three Months Ended June 30, 2023
The following table summarizes the changes in revenue by category (in millions):
−Removed: Three Months Ended March 31, Percentage Change in Revenue
+Added: Three Months Ended June 30, Percentage Change in Revenue
2024 2023 Organic Acquisition and Divestiture Foreign Exchange Total Change
3 unchanged sentences
In the table above, the sum of the individual percentages may not equal the total due to rounding.
−Removed: The increase in parts and services revenue of 12.1% represented increases in segment revenue of 23.8% in Wholesale - North America, 5.7% in Europe, and 6.7% in Specialty, partially offset by a decrease of 10.5% in Self Service.
−Removed: This overall increase was driven by an 11.6% increase due to the net impact of acquisitions and divestitures and a 0.8% increase due to fluctuations in foreign exchange rates, partially offset by an organic parts and services revenue decrease of 0.3% (0.5% increase on a per day basis).
−Removed: The decrease in other revenue of 14.6% was primarily driven by a decrease in organic revenue of $30 million due to unfavorable movements in precious metals compared to the prior year period, which resulted in a $26 million decrease in Self Service and a $4 million decrease in Wholesale - North America.
−Removed: Refer to the discussion of our segment results of operations for factors contributing to the changes in revenue by segment for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.
+Added: The increase in parts and services revenue of 9.0% represented increases in segment revenue of 24.8% in Wholesale - North America and 5.2% in Specialty, partially offset by a decrease of 11.1% in Self Service.
+Added: This overall increase was driven by an 11.8% increase due to the net impact of acquisitions and divestitures, partially offset by an organic parts and services revenue decrease of 2.1% (2.9% decrease on a per day basis) and a 0.6% decrease due to fluctuations in foreign exchange rates.
+Added: The decrease in other revenue of 16.2% was primarily driven by a decrease in organic revenue of $31 million due to lower commodities prices and volumes compared to the prior year period, which resulted in a $28 million decrease in Self Service and a $3 million decrease in Wholesale - North America.
+Added: Refer to the discussion of our segment results of operations for factors contributing to the changes in revenue by segment for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.
Cost of Goods Sold
−Removed: Cost of goods sold as a percentage of revenue increased to 60.8% of revenue for the three months ended March 31, 2024 from 59.0% of revenue for the three months ended March 31, 2023.
−Removed: Cost of goods sold reflects increases of 1.4% from Wholesale - North America, 0.3% attributable to mix shift towards our lower margin segments and 0.2% from Specialty, partially offset by a decrease of 0.3% from Europe.
−Removed: Refer to the discussion of our segment results of operations for factors contributing to the changes in cost of goods sold as a percentage of revenue by segment for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.
+Added: Cost of goods sold as a percentage of revenue increased to 61.2% of revenue for the three months ended June 30, 2024 from 59.0% of revenue for the three months ended June 30, 2023.
+Added: Cost of goods sold reflects increases of 1.5% from Wholesale - North America, 0.6% from Europe, and 0.2% attributable to mix shift towards our lower margin segments, partially offset by a decrease of 0.3% from Self Service.
+Added: Refer to the discussion of our segment results of operations for factors contributing to the changes in cost of goods sold as a percentage of revenue by segment for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.
Selling, General and Administrative Expenses
−Removed: SG&A expenses as a percentage of revenue increased to 28.2% for the three months ended March 31, 2024 from 27.8% for the three months ended March 31, 2023.
−Removed: The year over year increase in SG&A expense primarily reflects impacts of 0.8% in Europe and 0.2% from Self Service, partially offset by a decrease of 0.6% related to Wholesale - North America.
−Removed: Refer to the discussion of our segment results of operations for factors contributing to the changes in SG&A expenses as a percentage of revenue by segment for the three months ended March 31, 2024 compared to the three months ended March 31, 2023.
+Added: SG&A expenses as a percentage of revenue decreased to 26.3% for the three months ended June 30, 2024 from 27.2% for the three months ended June 30, 2023.
+Added: The year over year decrease in SG&A expense primarily reflects an impact of 0.9% related to Wholesale - North America.
+Added: Refer to the discussion of our segment results of operations for factors contributing to the changes in SG&A expenses as a percentage of revenue by segment for the three months ended June 30, 2024 compared to the three months ended June 30, 2023.
Restructuring and Transaction Related Expenses
The following table summarizes restructuring and transaction related expenses for the periods indicated (in millions):
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
2024 2023 Change
2 unchanged sentences
Restructuring and transaction related expenses $ 49 $ 8 $ 41
−Removed: (1) Restructuring expenses for the three months ended March 31, 2024 primarily consisted of (i) $19 million related to our 2024 Global Restructuring plan, (ii) $6 million related to our acquisition integration plans, (iii) $2 million related to our 1 LKQ Europe plan, and (iv) $1 million related to our 2022 Global Restructuring plan.
−Removed: (2) Restructuring expenses for the three months ended March 31, 2023 primarily consisted of (i) $5 million related to our 2022 Global Restructuring plan, (ii) $2 million related to our acquisition integration plans, and (iii) $1 million related to our 1 LKQ Europe plan.
−Removed: (3) Transaction related expenses for the three months ended March 31, 2024 and 2023 primarily related to external costs such as legal, accounting and advisory fees related to completed and potential acquisitions (including Uni-Select transaction costs in 2023).
+Added: (1) Restructuring expenses for the three months ended June 30, 2024 primarily consisted of (i) $37 million related to our 2024 Global Restructuring plan, (ii) $10 million related to our acquisition integration plans, (iii) $1 million related to our 1 LKQ Europe plan, and (iv) $1 million related to our 2022 Global Restructuring plan.
+Added: (2) Restructuring expenses for the three months ended June 30, 2023 primarily consisted of $2 million related to our 2022 Global Restructuring plan.
+Added: (3) Transaction related expenses for the three months ended June 30, 2023 primarily related to external costs such as legal, accounting and advisory fees related to completed and potential acquisitions (including Uni-Select transaction costs).
See Note 8, "Restructuring and Transaction Related Expenses" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information on our restructuring and acquisition integration plans.
1 unchanged sentence
The following table summarizes depreciation and amortization for the periods indicated (in millions):
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
2024 2023 Change
2 unchanged sentences
Depreciation and amortization $ 87 $ 61 $ 26
−Removed: (1) Depreciation expense increased primarily related to an increase in capital expenditures in the last nine months of 2023, which is impacting depreciation expense in 2024.
+Added: (1) Depreciation expense increased primarily related to an increase in capital expenditures in the last six months of 2023, which is impacting depreciation expense in 2024.
(2) Amortization expense increased primarily due to an increase in Wholesale - North America due to our acquisition of Uni-Select in August 2023.
1 unchanged sentence
The following table summarizes Total other expense, net for the periods indicated (in millions):
−Removed: Three Months Ended March 31,
+Added: Three Months Ended June 30,
2024 2023 Change
3 unchanged sentences
Total other expense, net $ 63 $ 18 $ 45
−Removed: (1) Interest expense increased primarily due to (i) a $27 million increase from higher outstanding debt primarily related to the permanent financing for the Uni-Select Acquisition and (ii) a $4 million increase from higher interest rates in the first quarter of 2024, partially offset by (iii) a $3 million decrease related to amortization of pre-acquisition bridge loan financing costs related to the Uni-Select Acquisition in the first quarter of 2023.
+Added: (1) Interest expense increased primarily due to (i) a $17 million increase from higher outstanding debt primarily related to the permanent financing for the Uni-Select Acquisition and (ii) a $3 million increase from higher interest rates in the second quarter of 2024 compared to the second quarter of 2023, partially offset by (iii) a $6 million decrease related to amortization of pre-acquisition bridge loan financing costs related to the Uni-Select Acquisition in the second quarter of 2023.
(2) Related to the Uni-Select Acquisition.
See Note 2, "Business Combinations" and Note 13, "Derivative Instruments and Hedging Activities" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information.
−Removed: (3) The decrease in Interest income and other income, net is primarily comprised of (i) a $5 million decrease from funds received to settle an eminent domain matter in 2023, partially offset by (ii) individually insignificant increases which in the aggregate had a $2 million impact.
+Added: (3) The decrease in Interest income and other income, net is primarily comprised of a $6 million decrease in interest income, primarily related to interest income on the proceeds from the U.S.
+Added: Notes (2028/33) that were invested in money market funds in 2023 and individually insignificant decreases which in the aggregate had a $2 million impact.
Provision for Income Taxes
−Removed: Our effective income tax rate for the three months ended March 31, 2024 was 30.7%, compared to 26.1% for the three months ended March 31, 2023.
−Removed: The increase in the effective tax rate for the three months ended March 31, 2024 compared to the three months ended March 31, 2023 is primarily attributable to the 4.4% unfavorable impact of discrete items, mostly related to the 2024 Global Restructuring Plan impairments.
+Added: Our effective income tax rate for the three months ended June 30, 2024 was 30.9%, compared to 28.0% for the three months ended June 30, 2023.
+Added: The increase in the effective tax rate for the three months ended June 30, 2024 compared to the three months ended June 30, 2023 is primarily attributable to the 3.4% unfavorable impact of discrete items, mostly related to the 2024 Global Restructuring Plan impairments.
Refer to Note 8, "Restructuring and Transaction Related Expenses" for further information on the impairments.
See Note 16, "Income Taxes" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information.
−Removed: Equity in (Losses) Earnings of Unconsolidated Subsidiaries
−Removed: Equity in (losses) earnings of unconsolidated subsidiaries for the three months ended March 31, 2024 decreased by $5 million primarily related to a decrease in year over year results reported by Mekonomen, which is our largest equity method investment.
+Added: Equity in Earnings of Unconsolidated Subsidiaries
+Added: Equity in earnings of unconsolidated subsidiaries for the three months ended June 30, 2024 was $2 million, which was consistent with the three months ended June 30, 2023.
Foreign Currency Impact
We translate our statements of income at the average exchange rates in effect for the period.
−Removed: Relative to the rates used during the three months ended March 31, 2023, the pound sterling, euro and Canadian dollar rates used to translate the 2024 statements of income increased by 4.3%, 1.2% and 0.3%, respectively, while the Czech koruna rate decreased by 4.0%.
+Added: Relative to the rates used during the three months ended June 30, 2023, the Czech koruna, Canadian dollar and euro rates used to translate the 2024 statements of income decreased by 6.7%, 1.9% and 1.1%, respectively, while the pound sterling rate increased by 0.8%.
Realized and unrealized currency gains and losses (including the effects of hedge instruments) combined with the translation effect of the change in foreign currencies against the U.S.
−Removed: dollar had a net negative effect of $0.06 on diluted earnings per share relative to the prior year period primarily related to the $23 million pretax gain on foreign exchange contract in the first quarter of 2023 related to the Uni-Select acquisition.
+Added: dollar had a net negative effect of $0.07 on diluted earnings per share relative to the prior year period primarily related to the $23 million pretax gain on the foreign exchange forward contracts in the second quarter of 2023 related to the Uni-Select Acquisition.
+Added: Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
+Added: The following table summarizes the changes in revenue by category (in millions):
+Added: Six Months Ended June 30, Percentage Change in Revenue
+Added: 2024 2023 Organic Acquisition and Divestiture Foreign Exchange Total Change
+Added: Parts & services revenue $ 7,087 $ 6,411 (1.2) % 11.7 % 0.1 % 10.5 %
+Added: Other revenue 327 386 (15.7) % 0.3 % — % (15.4) %
+Added: Total revenue $ 7,414 $ 6,797 (2.0) % 11.0 % 0.1 % 9.1 %
+Added: In the table above, the sum of the individual percentages may not equal the total due to rounding.
+Added: The increase in parts and services revenue of 10.5% represented increases in segment revenue of 24.3% in Wholesale - North America, 5.9% in Specialty, and 2.8% in Europe, partially offset by a decrease of 10.8% in Self Service.
+Added: This overall increase was driven by an 11.7% increase due to the net impact of acquisitions and divestitures and a 0.1% increase due to fluctuations in foreign exchange rates, partially offset by an organic parts and services revenue decrease of 1.2%.
+Added: The decrease in other revenue of 15.4% was primarily driven by a decrease in organic revenue of $61 million due to lower commodities prices and volumes compared to the prior year period, which resulted in a $54 million decrease in Self Service and a $7 million decrease in Wholesale - North America.
+Added: Refer to the discussion of our segment results of operations for factors contributing to the changes in revenue by segment for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
+Added: Cost of Goods Sold
+Added: Cost of goods sold as a percentage of revenue increased to 61.0% for the six months ended June 30, 2024 from 59.0% for the six months ended June 30, 2023.
+Added: Cost of goods sold reflects increases of 1.5% from Wholesale - North America, 0.2% from Europe, 0.2% attributable to mix shift towards our lower margin segments and 0.2% attributable to restructuring, partially offset by a decrease of 0.2% from Self Service.
+Added: Refer to the discussion of our segment results of operations for factors contributing to the changes in cost of goods sold as a percentage of revenue by segment for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
+Added: Selling, General and Administrative Expenses
+Added: SG&A expenses as a percentage of revenue decreased to 27.2% for the six months ended June 30, 2024 from 27.5% for the six months ended June 30, 2023.
+Added: The year over year decrease in SG&A expense primarily reflects impacts of 0.8% related to Wholesale - North America, partially offset by an increase of 0.4% in Europe.
+Added: Refer to the discussion of our segment results of operations for factors contributing to the changes in SG&A expenses as a percentage of revenue by segment for the six months ended June 30, 2024 compared to the six months ended June 30, 2023.
+Added: Restructuring and Transaction Related Expenses
+Added: The following table summarizes restructuring and transaction related expenses for the periods indicated (in millions):
+Added: Six Months Ended June 30,
+Added: 2024 2023 Change
+Added: Restructuring expenses $ 77 (1)
+Added: Transaction related expenses 2 16 (3)
+Added: Restructuring and transaction related expenses $ 79 $ 26 $ 53
+Added: (1) Restructuring expenses for the six months ended June 30, 2024 primarily consisted of (i) $56 million related to our 2024 Global Restructuring plan, (ii) $16 million related to our acquisition integration plans, (iii) $3 million related to our 1 LKQ Europe plan, and (iv) $2 million related to our 2022 Global Restructuring plan.
+Added: (2) Restructuring expenses for the six months ended June 30, 2023 primarily consisted of (i) $7 million related to our 2022 Global Restructuring plan, (ii) $2 million related to our acquisition integration plans, and (iii) $1 million related to our 1 LKQ Europe plan.
+Added: (3) Transaction related expenses for the six months ended June 30, 2023 primarily related to external costs such as legal, accounting and advisory fees related to completed and potential acquisitions (including Uni-Select transaction costs).
+Added: See Note 8, "Restructuring and Transaction Related Expenses" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information on our restructuring and acquisition integration plans.
+Added: Depreciation and Amortization
+Added: The following table summarizes depreciation and amortization for the periods indicated (in millions):
+Added: Six Months Ended June 30,
+Added: 2024 2023 Change
+Added: Depreciation $ 87 $ 74 $ 13 (1)
+Added: Amortization 89 45 44 (2)
+Added: Depreciation and amortization $ 176 $ 119 $ 57
+Added: (1) Depreciation expense increased primarily related to an increase in capital expenditures in the last six months of 2023, which is impacting depreciation expense in 2024.
+Added: (2) Amortization expense increased primarily due to an increase in Wholesale - North America due to our acquisition of Uni-Select in August 2023.
+Added: Total Other Expense, Net
+Added: The following table summarizes Total other expense, net for the periods indicated (in millions):
+Added: Six Months Ended June 30,
+Added: 2024 2023 Change
+Added: Interest expense $ 130 $ 88 $ 42 (1)
+Added: Gains on foreign exchange contracts - acquisition related — (46) 46 (2)
+Added: Interest income and other income, net (9) (20) 11 (3)
+Added: Total other expense, net $ 121 $ 22 $ 99
+Added: (1) Interest expense increased primarily due to (i) a $44 million increase from higher outstanding debt primarily related to the permanent financing for the Uni-Select Acquisition and (ii) a $7 million increase from higher interest rates in the first half of 2024, partially offset by (iii) a $9 million decrease related to amortization of pre-acquisition bridge loan financing costs related to the Uni-Select Acquisition in the first half of 2023.
+Added: (2) Related to the Uni-Select Acquisition.
+Added: See Note 2, "Business Combinations" and Note 13, "Derivative Instruments and Hedging Activities" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information.
+Added: (3) The decrease in Interest income and other income, net is primarily comprised of a $6 million decrease in interest income, primarily related to interest income on the proceeds from the U.S.
+Added: Notes (2028/33) that were invested in money market funds in 2023 and a $5 million decrease from funds received to settle an eminent domain matter in 2023.
+Added: Provision for Income Taxes
+Added: Our effective income tax rate for the six months ended June 30, 2024 was 30.8%, compared to 27.1% for the six months ended June 30, 2023.
+Added: The increase in the effective tax rate for the six months ended June 30, 2024 compared to the six months ended June 30, 2023 is primarily attributable to the 3.9% unfavorable impact of discrete items, mostly related to the 2024 Global Restructuring Plan impairments.
+Added: Refer to Note 8, "Restructuring and Transaction Related Expenses" for further information on the impairments.
+Added: See Note 16, "Income Taxes" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information.
+Added: Equity in Earnings of Unconsolidated Subsidiaries
+Added: Equity in earnings of unconsolidated subsidiaries for the six months ended June 30, 2024 decreased by $5 million compared to the six months ended June 30, 2023, primarily related to a decrease in year over year results reported by Mekonomen, which is our largest equity method investment.
+Added: Foreign Currency Impact
+Added: We translate our statements of income at the average exchange rates in effect for the period.
+Added: Relative to the rates used during the six months ended June 30, 2023, the Czech koruna and Canadian dollar rates used to translate the 2024 statements of income decreased by 5.5% and 0.8%, respectively, while the pound sterling rate increased by 2.5% and the euro rate was flat.
+Added: Realized and unrealized currency gains and losses (including the effects of hedge instruments) combined with the translation effect of the change in foreign currencies against the U.S.
+Added: dollar had a net negative effect of $0.13 on diluted earnings per share relative to the prior year period primarily related to the $46 million pretax gain on the foreign exchange forward contracts in the first half of 2023 related to the Uni-Select Acquisition.
Results of Operations—Segment Reporting
10 unchanged sentences
The following table presents our financial performance, including third party revenue, total revenue and Segment EBITDA, by reportable segment for the periods indicated (in millions):
−Removed: Three Months Ended March 31,
−Removed: 2024 % of Total Segment Revenue 2023 % of Total Segment Revenue
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2024 % of Total Segment Revenue 2023 % of Total Segment Revenue 2024 % of Total Segment Revenue 2023 % of Total Segment Revenue
Third Party Revenue
3 unchanged sentences
Specialty 466 442 888 838
+Added: 133 169 270 338
Total third party revenue $ 3,711 $ 3,448 $ 7,414 $ 6,797
4 unchanged sentences
Specialty 466 443 889 840
+Added: 133 169 270 338
Eliminations (1) (1) (2) (2)
7 unchanged sentences
In the table above, the percentages of total segment revenue may not recalculate due to rounding.
−Removed: The key measure of segment profit or loss reviewed by our chief operating decision maker, our Chief Executive Officer, is Segment EBITDA.
+Added: The key measure of segment profit or loss reviewed by our CODM, our Chief Executive Officer, is Segment EBITDA.
We use Segment EBITDA to compare profitability among the segments and evaluate business strategies.
7 unchanged sentences
income tax expense;
−Removed: restructuring and transaction related expenses (which includes restructuring expenses recorded in Cost of goods sold);
+Added: restructuring and transaction related expenses;
change in fair value of contingent consideration liabilities;
3 unchanged sentences
impairment charges;
−Removed: and direct impacts of the Ukraine/Russia conflict and related sanctions.
+Added: and direct impacts of the Ukraine/Russia conflict.
See Note 17, "Segment and Geographic Information" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for a reconciliation of total Segment EBITDA to net income.
−Removed: Three Months Ended March 31, 2024 Compared to Three Months Ended March 31, 2023
+Added: Three Months Ended June 30, 2024 Compared to Three Months Ended June 30, 2023
Wholesale - North America
1 unchanged sentence
The following table summarizes the changes in third party revenue by category in our Wholesale - North America segment (in millions):
−Removed: Three Months Ended March 31, Percentage Change in Revenue
+Added: Three Months Ended June 30, Percentage Change in Revenue
Wholesale - North America
2 unchanged sentences
Parts & services revenue $ 1,398 $ 1,121 (5.3) % (1)
+Added: (0.1) % 24.8 %
Other revenue 75 78 (4.0) % (2)
2 unchanged sentences
In the table above, the sum of the individual percentages may not equal the total due to rounding.
−Removed: (1) Parts and services organic revenue decreased 3.3% for the three months ended March 31, 2024 compared to the prior year period, primarily driven by decreased aftermarket collision volumes which were negatively impacted by lower repairable claims, which we believe is primarily attributable to comparatively warmer weather.
−Removed: (2) Other organic revenue decreased 4.9%, or $4 million, year over year primarily related to (i) a $10 million decrease in revenue from precious metals due to lower prices, partially offset by (ii) a $5 million increase in revenue from other scrap (e.g., aluminum) and cores due to higher prices and volumes and (iii) a $1 million increase in revenue from scrap steel due to higher volumes.
+Added: (1) Parts and services organic revenue decreased 5.3% for the three months ended June 30, 2024 compared to the prior year period, primarily driven by decreased aftermarket collision volumes which were negatively impacted by lower repairable claims, which we believe are primarily attributable to difficult economic conditions, comparatively warmer weather in the first quarter of 2024 which reduced backlog at body shops going into the second quarter of 2024 and, to a lesser extent, inventory availability issues due to delays in inbound deliveries.
+Added: (2) Other organic revenue decreased 4.0%, or $3 million, year over year primarily related to (i) a $3 million decrease in revenue from precious metals due to lower prices, partially offset by higher volumes, (ii) a $1 million decrease in revenue from scrap steel due to lower prices, partially offset by (iii) a $1 million increase in revenue from other scrap (e.g., aluminum) and cores due to higher prices.
(3) Acquisition and divestiture parts and services revenue was an increase of $338 million, or 30.2%, primarily due to the acquisition of Uni-Select in the third quarter of 2023.
1 unchanged sentence
Segment EBITDA
−Removed: Segment EBITDA decreased $8 million, or 3.1%, for the three months ended March 31, 2024 compared to the prior year period, which includes a positive impact related to the acquisition of Uni-Select in the third quarter of 2023 (Uni-Select increases Segment EBITDA dollars but dilutes the Segment EBITDA percentage).
−Removed: The decrease is primarily attributable to lower aftermarket volumes, a decrease in salvage margins and continued inflationary pressures.
+Added: Segment EBITDA increased $8 million, or 3.1%, for the three months ended June 30, 2024 compared to the prior year period, which includes a positive impact related to the acquisition of Uni-Select in the third quarter of 2023 (Uni-Select increases Segment EBITDA dollars but dilutes the Segment EBITDA percentage), including accelerated synergies, and cost savings initiatives, partially offset by lower collision volumes, lower precious metals prices, a decrease in salvage margins and continued inflationary pressures.
We estimate that precious metals and scrap steel prices had a net unfavorable effect of $6 million, or 0.4%, on Segment EBITDA margin relative to the comparable prior year period.
2 unchanged sentences
Percentage of Total Segment Revenue
−Removed: Segment EBITDA for the three months ended March 31, 2023
+Added: Segment EBITDA for the three months ended June 30, 2023
Increase (decrease) due to:
Change in gross margin (5.9) % (1)
+Added: Segment EBITDA adjustments 0.2 % (1)
Change in segment operating expenses 2.3 % (2)
Change in other income and expenses, net 0.1 %
−Removed: Segment EBITDA for the three months ended March 31, 2024
+Added: Segment EBITDA for the three months ended June 30, 2024
In the table above, the sum of the individual percentages may not equal the total due to rounding.
2 unchanged sentences
The year over year effect will be noted through the third quarter, after which the impact will be annualized.
−Removed: Additionally, gross margin was negatively affected by decreases in salvage margins tied to softening salvage revenue and the effects of higher car costs.
−Removed: (2) The decrease in segment operating expenses as a percentage of revenue primarily reflects favorable impacts of (i) 0.6% from higher charitable contributions in the prior year period, (ii) 0.5% from decreased freight, vehicle, and fuel costs and (iii) 0.4% from lower incentive compensation.
−Removed: (3) The unfavorable impact in other income and expenses, net was primarily related to funds received to settle an eminent domain matter in 2023.
+Added: Additionally, gross margin was
+Added: negatively affected by the related mix effect resulting from lower aftermarket revenue, which has a higher margin than our other wholesale lines and decreases in salvage margins tied to softening salvage revenue.
+Added: Reported gross margin also includes a 0.2% reduction primarily related to restructuring expenses incurred as part of the 2024 Global Restructuring Plan.
+Added: These costs are excluded from the calculation of Segment EBITDA.
+Added: See Note 8, "Restructuring and Transaction Related Expenses" and Note 17, "Segment and Geographic Information" for further information.
+Added: (2) The decrease in segment operating expenses as a percentage of revenue primarily reflects favorable impacts of (i) 1.1% related to lower incentive compensation, (ii) 0.7% from other personnel expenses primarily related to cost savings initiatives, (iii) 0.4% from decreased freight, vehicle, and fuel costs and (iv) other individually immaterial factors representing a 0.1% favorable impact in the aggregate.
Third Party Revenue
The following table summarizes the changes in third party revenue by category in our Europe segment (in millions):
−Removed: Three Months Ended March 31, Percentage Change in Revenue
+Added: Three Months Ended June 30, Percentage Change in Revenue
Europe 2024 2023 Organic Acquisition and Divestiture (2)
5 unchanged sentences
In the table above, the sum of the individual percentages may not equal the total due to rounding.
−Removed: (1) Parts and services organic revenue for the three months ended March 31, 2024 increased by 2.7% (4.4% on a per day basis), primarily driven by increased volumes and, to a lesser extent, pricing initiatives to offset increased costs resulting from inflationary pressures.
−Removed: (2) Acquisition and divestiture revenue was an increase of $21 million, or 1.4%, related to our acquisition of five wholesale businesses from the beginning of 2023 through the one-year anniversary of the acquisition dates.
−Removed: (3) Exchange rates increased our revenue growth by $26 million, or 1.7%, primarily due to the weaker U.S.
−Removed: dollar against the euro and pound sterling, partially offset by the Czech koruna for the three months ended March 31, 2024 relative to the prior year period.
+Added: (1) Parts and services organic revenue for the three months ended June 30, 2024 increased by 0.3% (1.3% decrease on a per day basis), primarily driven by an increased number of selling days in the current quarter compared to the prior year period, partially offset by decreased volumes as a result of difficult economic conditions, and strike activity and heightened competition in certain markets.
+Added: (2) Acquisition and divestiture revenue was an increase of $13 million, or 0.8%, primarily related to our acquisition of four wholesale businesses from the beginning of the second quarter of 2023 through the one-year anniversary of the acquisition dates.
+Added: (3) Exchange rates decreased our revenue growth by $18 million, or 1.1%, primarily due to the stronger U.S.
+Added: dollar against the euro and Czech koruna, partially offset by the weaker U.S.
+Added: dollar against the pound sterling for the three months ended June 30, 2024 relative to the prior year period.
Segment EBITDA
−Removed: Segment EBITDA decreased $8 million, or 5.3%, for the three months ended March 31, 2024 compared to the prior year period.
+Added: Segment EBITDA decreased $14 million, or 7.4%, for the three months ended June 30, 2024 compared to the prior year period.
On a constant currency basis (i.e., excluding translation impact), Segment EBITDA decreased by $12 million, or 6.3%, compared to the prior year period.
−Removed: The decrease in dollar terms is mainly attributable to the negative impact of higher operating expenses primarily related to increased personnel costs that more than offset the effects of organic revenue growth of $42 million.
−Removed: Refer to the Foreign Currency Impact discussion within the Results of Operations–Consolidated section above for further detail regarding foreign currency impact on our results for the three months ended March 31, 2024.
+Added: The decrease in dollar terms is mainly attributable to the negative impact of higher supplier costs and unfavorable customer mix, which more than offset the effects of lower operating expenses and organic revenue growth of $6 million.
+Added: Refer to the Foreign Currency Impact discussion within the Results of Operations–Consolidated section above for further detail regarding foreign currency impact on our results for the three months ended June 30, 2024.
The following table summarizes the changes in Segment EBITDA as a percentage of revenue in our Europe segment:
Europe Percentage of Total Segment Revenue
−Removed: Segment EBITDA for the three months ended March 31, 2023
+Added: Segment EBITDA for the three months ended June 30, 2023
Increase (decrease) due to:
Change in gross margin (1.6) % (1)
−Removed: Segment EBITDA adjustment:
−Removed: restructuring expense - cost of goods sold 0.5 % (1)
+Added: Segment EBITDA adjustments 0.3 % (1)
Change in segment operating expenses 0.3 % (2)
−Removed: Segment EBITDA for the three months ended March 31, 2024
+Added: Change in other income and expenses, net 0.1 %
+Added: Segment EBITDA for the three months ended June 30, 2024
In the table above, the sum of the individual percentages may not equal the total due to rounding.
−Removed: (1) The increase in gross margin was primarily attributable to favorable pricing, procurement, and productivity initiatives to offset difficult macro-economic conditions arising from inflationary pressures.
−Removed: Additionally, reported gross margin includes a 0.5% reduction related to restructuring expenses incurred as part of the 2024 Global Restructuring Plan.
+Added: (1) The decrease in gross margin was primarily attributable to unfavorable customer mix and inflationary pressures that were not fully offset by pricing initiatives.
+Added: Additionally, reported gross margin includes a 0.3% reduction primarily related to restructuring expenses incurred as part of the 2024 Global Restructuring Plan.
These costs are excluded from the calculation of Segment EBITDA.
See Note 8, "Restructuring and Transaction Related Expenses" and Note 17, "Segment and Geographic Information" for further information.
−Removed: (2) The increase in segment operating expenses as a percentage of revenue reflects unfavorable impacts of (i) 1.2% from increased personnel costs mainly due to wage inflation in Germany and Benelux, (ii) 0.3% from professional fees related to several strategic central and regional information technology initiatives, (iii) 0.2% from increased outbound freight and logistics costs, and (iv) other individually immaterial factors representing a 0.4% unfavorable impact in the aggregate, partially offset by (v) a favorable impact of 0.5% due to lower energy and utilities costs compared to the prior year period across all geographies.
+Added: (2) The decrease in segment operating expenses as a percentage of revenue reflects favorable impacts of (i) 0.9% due to a reduction in personnel related accruals previously recorded as a result of union related negotiations, (ii) 0.2% due to lower energy and utilities costs compared to the prior year period, and (iii) other individually immaterial factors representing a 0.1% favorable impact in aggregate, partially offset by unfavorable impacts of (iv) 0.5% from increased personnel costs mainly due to wage inflation, (v) 0.2% from professional fees related to several strategic central and regional information technology initiatives, and (vi) 0.2% from increased outbound freight and logistics costs.
Third Party Revenue
The following table summarizes the changes in third party revenue by category in our Specialty segment (in millions):
−Removed: Three Months Ended March 31, Percentage Change in Revenue
+Added: Three Months Ended June 30, Percentage Change in Revenue
Specialty 2024 2023 Organic (1)
5 unchanged sentences
In the table above, the sum of the individual percentages may not equal the total due to rounding.
−Removed: (1) Parts and services organic revenue for the three months ended March 31, 2024 decreased by 1.4% primarily due to demand softness in the recreational vehicle ("RV") product line, as RV unit retail sales have declined year over year.
+Added: (1) Parts and services organic revenue for the three months ended June 30, 2024 decreased by 2.1% primarily due to demand softness in the recreational vehicle ("RV") product line, as RV unit retail sales have declined year over year.
(2) Acquisition and divestiture revenue was a net increase of $33 million, or 7.4%, primarily related to our acquisition of one Specialty business in 2023.
Segment EBITDA
−Removed: Segment EBITDA decreased $4 million, or 13.2%, for the three months ended March 31, 2024 compared to the prior year period primarily due to the organic revenue decline and the decline in gross margin as explained below.
+Added: Segment EBITDA decreased $1 million, or 2.2%, for the three months ended June 30, 2024 compared to the prior year period primarily due to a lower gross margin percentage.
The following table summarizes the changes in Segment EBITDA as a percentage of revenue in our Specialty segment:
Specialty Percentage of Total Segment Revenue
−Removed: Segment EBITDA for the three months ended March 31, 2023
+Added: Segment EBITDA for the three months ended June 30, 2023
Increase (decrease) due to:
2 unchanged sentences
Change in other income and expenses, net (0.1) %
−Removed: Segment EBITDA for the three months ended March 31, 2024
+Added: Segment EBITDA for the three months ended June 30, 2024
In the table above, the sum of the individual percentages may not equal the total due to rounding.
−Removed: (1) The decrease in gross margin primarily was driven by higher discounts to help maintain sales volume.
−Removed: (2) The decrease in segment operating expenses as a percentage of revenue was due to individually immaterial factors representing a 0.1% favorable impact in the aggregate.
+Added: (1) The decrease in gross margin was primarily driven by higher discounts to help maintain sales volume.
+Added: (2) The decrease in segment operating expenses as a percentage of revenue was due to individually immaterial factors representing a 0.5% favorable impact in the aggregate, partially offset by an unfavorable impact of 0.4% due to duplicate facility costs associated with consolidating distribution centers.
Third Party Revenue
The following table summarizes the changes in third party revenue by category in our Self Service segment (in millions):
−Removed: Three Months Ended March 31, Percentage Change in Revenue
+Added: Three Months Ended June 30, Percentage Change in Revenue
2024 2023 Organic Acquisition and Divestiture Foreign Exchange Total Change
5 unchanged sentences
In the table above, the sum of the individual percentages may not equal the total due to rounding.
−Removed: (1) Parts and services organic revenue decreased 10.5% for the three months ended March 31, 2024 compared to the prior year period, primarily driven by lower retail volumes from reduced admissions, which were impacted by adverse weather conditions (primarily in California).
−Removed: (2) Other organic revenue decreased 24.2%, or $26 million, year over year primarily due to (i) a $17 million decrease in revenue from precious metals due to lower prices and lower volumes and (ii) a $9 million decrease in revenue from scrap steel primarily related to lower volumes and slightly lower prices.
+Added: (1) Parts and services organic revenue decreased 11.1% (12.1% on a per day basis) for the three months ended June 30, 2024 compared to the prior year period, primarily driven by lower parts volumes.
+Added: (2) Other organic revenue decreased 26.7%, or $28 million, year over year due to a $15 million decrease in revenue from scrap steel primarily related to lower volumes and, to a lesser extent, lower prices and a $13 million decrease in revenue from precious metals due to lower prices and lower volumes.
Segment EBITDA
−Removed: Segment EBITDA decreased $6 million for the three months ended March 31, 2024 compared to the prior year period.
−Removed: The decrease is driven by the decline in revenue due to unfavorable movements in commodity prices and lower volumes compared to the prior year period, partially offset by improved vehicle procurement costs and improvements in operational productivity.
−Removed: Decreases in precious metals prices contributed an estimated $8 million decline in Segment EBITDA relative to the three months ended March 31, 2023.
−Removed: Net sequential changes in scrap steel prices had a negative year over year effect as the favorability in the current year was lower than in the prior year.
−Removed: During the three months ended March 31, 2024, scrap steel prices had a $4 million favorable impact on Segment EBITDA, compared to an $11 million favorable impact during the three months ended March 31, 2023.
−Removed: The favorable impacts for the three months ended March 31, 2024 resulted from the increase in scrap steel prices between the date we purchased a vehicle, which influences the price we pay for a vehicle, and the date we scrapped a vehicle, which influences the price we receive for scrapping a vehicle.
+Added: Segment EBITDA increased $6 million, or 93.1%, for the three months ended June 30, 2024 compared to the prior year period.
+Added: The increase is driven by improved vehicle procurement costs and improvements in operational productivity, partially offset by the unfavorable movements in commodity prices and lower volumes compared to the prior year period.
+Added: Decreases in precious metals prices contributed an estimated $5 million decline in Segment EBITDA relative to the three months ended June 30, 2023.
+Added: During the three months ended June 30, 2024, scrap steel prices had a $5 million unfavorable impact on Segment EBITDA, compared to a $2 million unfavorable impact during the three months ended June 30, 2023.
+Added: The unfavorable impacts for the three months ended June 30, 2024 resulted from the decrease in scrap steel prices between the date we purchased a vehicle, which influences the price we pay for a vehicle, and the date we scrapped a vehicle, which influences the price we receive for scrapping a vehicle.
The following table summarizes the changes in Segment EBITDA as a percentage of revenue in our Self Service segment:
Percentage of Total Segment Revenue
−Removed: Segment EBITDA for the three months ended March 31, 2023
+Added: Segment EBITDA for the three months ended June 30, 2023
Increase (decrease) due to:
1 unchanged sentence
Change in segment operating expenses (3.0) % (2)
+Added: Segment EBITDA for the three months ended June 30, 2024
+Added: In the table above, the sum of the individual percentages may not equal the total due to rounding.
+Added: (1) The increase in gross margin is attributable to improvements in vehicle procurement costs, which more than offset the negative effects from lower commodities prices.
+Added: (2) The increase in segment operating expenses as a percentage of revenue reflects negative leverage effect of 6.0% from decreases in metals revenue, partially offset by other individually immaterial factors representing a 3.0% favorable impact in the aggregate.
+Added: Six Months Ended June 30, 2024 Compared to Six Months Ended June 30, 2023
+Added: Wholesale - North America
+Added: Third Party Revenue
+Added: The following table summarizes the changes in third party revenue by category in our Wholesale - North America segment (in millions):
+Added: Six Months Ended June 30, Percentage Change in Revenue
+Added: Wholesale - North America 2024 2023 Organic Acquisition and Divestiture Foreign Exchange Total Change
+Added: Parts & services revenue $ 2,820 $ 2,269 (4.3) % (1)
+Added: Other revenue 153 159 (4.4) % (2)
+Added: 0.8 % — % (3.7) %
+Added: Total third party revenue $ 2,973 $ 2,428 (4.3) % 26.8 % — % 22.5 %
+Added: In the table above, the sum of the individual percentages may not equal the total due to rounding.
+Added: (1) Parts and services organic revenue decreased 4.3% for the six months ended June 30, 2024 compared to the prior year period, primarily driven by decreased aftermarket collision volumes which were negatively impacted by lower repairable claims, which we believe are primarily attributable to difficult economic conditions, comparatively warmer weather in the first quarter of 2024 which reduced backlog at body shops going into the second quarter of 2024 and, to a lesser extent, inventory availability issues due to delays in inbound deliveries.
+Added: (2) Other organic revenue decreased 4.4%, or $7 million, year over year primarily related to (i) a $12 million decrease in revenue from precious metals due to lower prices, partially offset by higher volumes and (ii) a $1 million decrease in revenue from scrap steel due to lower prices, partially offset by higher volumes, partially offset by (iii) a $6 million increase in revenue from other scrap (e.g., aluminum) and cores due to higher volumes and higher prices.
+Added: (3) Acquisition and divestiture parts and services revenue was an increase of $650 million, or 28.6%, primarily due to the acquisition of Uni-Select in the third quarter of 2023.
+Added: See Note 2, "Business Combinations" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for further information on the acquisition of Uni-Select.
+Added: Segment EBITDA
+Added: Segment EBITDA dollars were flat for the six months ended June 30, 2024 compared to the prior year period, which includes a positive impact related to the acquisition of Uni-Select in the third quarter of 2023 (Uni-Select increases Segment EBITDA dollars but dilutes the Segment EBITDA percentage), primarily offset by lower aftermarket volumes, a decrease in salvage margins and lower metals pricing and continued inflationary pressures.
+Added: We estimate that precious metals and scrap steel prices had a net unfavorable effect of $13 million, or 0.4%, on Segment EBITDA margin relative to the comparable prior year period.
+Added: The following table summarizes the changes in Segment EBITDA as a percentage of revenue in our Wholesale - North America segment:
+Added: Wholesale - North America Percentage of Total Segment Revenue
+Added: Segment EBITDA for the six months ended June 30, 2023
+Added: Increase (decrease) due to:
+Added: Change in gross margin (5.6) % (1)
+Added: Change in segment operating expenses 1.9 % (2)
Change in other income and expenses, net (0.1) % (3)
−Removed: Segment EBITDA for the three months ended March 31, 2024
+Added: Segment EBITDA for the six months ended June 30, 2024
In the table above, the sum of the individual percentages may not equal the total due to rounding.
+Added: (1) The decrease in gross margin of 5.6% was driven by the dilutive nature of the acquisition of Uni-Select, which changed the segment's product mix to reflect a greater percentage of paint, body and equipment and maintenance product lines.
+Added: These product lines have a lower gross margin structure than our other wholesale product lines.
+Added: The year over year effect will be noted through the third quarter, after which the impact will be annualized.
+Added: Additionally, gross margin was negatively affected by the related mix effect resulting from lower aftermarket revenue, which has a higher margin that our other wholesale lines as well as decreases in salvage margins tied to softening salvage revenue and the effects of higher car costs.
+Added: (2) The decrease in segment operating expenses as a percentage of revenue primarily reflects favorable impacts of (i) 0.8% from lower incentive compensation, (ii) 0.4% from decreased freight, vehicle, and fuel costs, (iii) 0.3% from higher charitable contributions in the prior year period and (iv) other individually immaterial factors representing a 0.4% favorable impact in the aggregate.
+Added: (3) The unfavorable impact in other income and expenses, net was primarily related to funds received to settle an eminent domain matter in 2023.
+Added: Third Party Revenue
+Added: The following table summarizes the changes in third party revenue by category in our Europe segment (in millions):
+Added: Six Months Ended June 30, Percentage Change in Revenue
+Added: Europe 2024 2023 Organic Acquisition and Divestiture (2)
+Added: Foreign Exchange (3)
+Added: Parts & services revenue $ 3,270 $ 3,181 1.5 % (1)
+Added: 1.1 % 0.2 % 2.8 %
+Added: Other revenue 13 12 9.8 % — % 0.3 % 10.2 %
+Added: Total third party revenue $ 3,283 $ 3,193 1.5 % 1.1 % 0.2 % 2.8 %
+Added: In the table above, the sum of the individual percentages may not equal the total due to rounding.
+Added: (1) Parts and services organic revenue for the six months ended June 30, 2024 increased by 1.5%, primarily driven by increased volumes in the first quarter of 2024 and, to a lesser extent, pricing initiatives to offset increased costs resulting from inflationary pressures.
+Added: (2) Acquisition and divestiture revenue was a net increase of $34 million, or 1.1%, primarily related to our acquisition of five wholesale businesses from the beginning of 2023 through the one-year anniversary of the acquisition dates.
+Added: (3) Exchange rates increased our revenue growth by $8 million, or 0.2%, primarily due to the weaker U.S.
+Added: dollar against the pound sterling, partially offset by the stronger U.S.
+Added: dollar against the Czech koruna for the six months ended June 30, 2024 relative to the prior year period.
+Added: Segment EBITDA
+Added: Segment EBITDA decreased $22 million, or 6.5%, for the six months ended June 30, 2024 compared to the prior year period.
+Added: On a constant currency basis (i.e., excluding translation impact), Segment EBITDA decreased by $23 million, or 6.7%, com pared to the prior year period.
+Added: The decrease in dollar terms is mainly attributable to lower gross margin and the negative impact of higher operating expenses, primarily related to increased personnel costs, that more than offset the effects of organic revenue growth of $48 million.
+Added: Refer to the Foreign Currency Impact discussion within the Results of Operations–Consolidated
+Added: section above for further detail regarding foreign currency impact on our results for the six months ended June 30, 2024.
+Added: The following table summarizes the changes in Segment EBITDA as a percentage of revenue in our Europe segment:
+Added: Europe Percentage of Total Segment Revenue
+Added: Segment EBITDA for the six months ended June 30, 2023
+Added: Increase (decrease) due to:
+Added: Change in gross margin (0.8) % (1)
+Added: Segment EBITDA adjustments 0.5 % (1)
+Added: Change in segment operating expenses (0.7) % (2)
+Added: Change in other expense, net 0.1 %
+Added: Segment EBITDA for the six months ended June 30, 2024
+Added: In the table above, the sum of the individual percentages may not equal the total due to rounding.
+Added: (1) The decrease in gross margin was primarily attributable to unfavorable customer mix and inflationary pressures that were not fully offset by pricing initiatives.
+Added: Additionally, reported gross margin includes a 0.5% reduction primarily related to restructuring expenses incurred as part of the 2024 Global Restructuring Plan.
+Added: These costs are excluded from the calculation of Segment EBITDA.
+Added: See Note 8, "Restructuring and Transaction Related Expenses" and Note 17, "Segment and Geographic Information" for further information.
+Added: (2) The increase in segment operating expenses as a percentage of revenue reflects unfavorable impacts of (i) 0.3% from increased personnel costs mainly due to wage inflation, (ii) 0.3% from increased outbound freight and logistics costs, (iii) 0.2% from professional fees related to several strategic central and regional information technology initiatives, and (iv) other individually immaterial factors representing a 0.2% unfavorable impact in aggregate, partially offset by a favorable impact of (v) 0.3% due to lower energy and utilities costs compared to the prior year period across all geographies.
+Added: Third Party Revenue
+Added: The following table summarizes the changes in third party revenue by category in our Specialty segment (in millions):
+Added: Six Months Ended June 30, Percentage Change in Revenue
+Added: Specialty 2024 2023 Organic (1)
+Added: Acquisition and Divestiture (2)
+Added: Foreign Exchange Total Change
+Added: Parts & services revenue $ 888 $ 838 (1.8) % 7.7 % (0.1) % 5.9 %
+Added: Other revenue — — — % — % — % — %
+Added: Total third party revenue $ 888 $ 838 (1.8) % 7.7 % (0.1) % 5.9 %
+Added: In the table above, the sum of the individual percentages may not equal the total due to rounding.
+Added: (1) Parts and services organic revenue for the six months ended June 30, 2024 decreased by 1.8% primarily due to demand softness in the RV product line, as RV unit retail sales have declined year over year.
+Added: (2) Acquisition and divestiture revenue was a net increase of $65 million, or 7.7%, primarily related to our acquisition of one Specialty business in 2023.
+Added: Segment EBITDA
+Added: Segment EBITDA decreased $5 million, or 6.9%, for the six months ended June 30, 2024 compared to the prior year period primarily due to the organic revenue decline and the decline in gross margin as explained below.
+Added: The following table summarizes the changes in Segment EBITDA as a percentage of revenue in our Specialty segment:
+Added: Specialty Percentage of Total Segment Revenue
+Added: Segment EBITDA for the six months ended June 30, 2023
+Added: Increase (decrease) due to:
+Added: Change in gross margin (1.1) % (1)
+Added: Change in segment operating expenses 0.1 % (2)
+Added: Segment EBITDA for the six months ended June 30, 2024
+Added: In the table above, the sum of the individual percentages may not equal the total due to rounding.
+Added: (1) The decrease in gross margin was primarily driven by higher discounts to help maintain sales volume.
+Added: (2) The decrease in segment operating expenses as a percentage of revenue was due to individually immaterial factors representing a 0.3% favorable impact in the aggregate, partially offset by an unfavorable impact of 0.2% due to duplicate facility costs associated with consolidating distribution centers.
+Added: Third Party Revenue
+Added: The following table summarizes the changes in third party revenue by category in our Self Service segment (in millions):
+Added: Six Months Ended June 30, Percentage Change in Revenue
+Added: Self Service 2024 2023 Organic Acquisition and Divestiture Foreign Exchange Total Change
+Added: Parts & services revenue $ 109 $ 123 (10.8) % (1)
+Added: — % — % (10.8) %
+Added: Other revenue 161 215 (25.4) % (2)
+Added: — % — % (25.4) %
+Added: Total third party revenue $ 270 $ 338 (20.1) % — % — % (20.1) %
+Added: In the table above, the sum of the individual percentages may not equal the total due to rounding.
+Added: (1) Parts and services organic revenue decreased 10.8% (11.3% on a per day basis) for the six months ended June 30, 2024 compared to the prior year period, primarily driven by lower parts volumes from a reduced number of customer admissions, which were impacted by adverse weather conditions (primarily in California).
+Added: (2) Other organic revenue decreased 25.4%, or $54 million, year over year due to a $31 million decrease in revenue from precious metals due to lower prices and lower volumes and a $23 million decrease in revenue from scrap steel primarily related to lower volumes and, to a lesser extent, lower prices.
+Added: Segment EBITDA
+Added: Segment EBITDA dollars were flat for the six months ended June 30, 2024 compared to the prior year period.
+Added: This is driven by improved vehicle procurement costs and improvements in operational productivity, partially offset by unfavorable movements in commodity prices and lower volumes compared to the prior year period.
+Added: Decreases in precious metals prices contributed an estimated $13 million decline in Segment EBITDA relative to the six months ended June 30, 2023.
+Added: During the six months ended June 30, 2024, scrap steel prices had a $1 million unfavorable impact on Segment EBITDA, compared to a $9 million favorable impact during the six months ended June 30, 2023.
+Added: The unfavorable impacts for the six months ended June 30, 2024 resulted from decreases in scrap steel prices between the date we purchased a vehicle, which influences the price we pay for a vehicle, and the date we scrapped a vehicle, which influences the price we receive for scrapping a vehicle.
+Added: The following table summarizes the changes in Segment EBITDA as a percentage of revenue in our Self Service segment:
+Added: Self Service Percentage of Total Segment Revenue
+Added: Segment EBITDA for the six months ended June 30, 2023
+Added: Increase (decrease) due to:
+Added: Change in gross margin 5.9 % (1)
+Added: Segment EBITDA adjustments (0.2) % (1)
+Added: Change in segment operating expenses (3.5) % (2)
+Added: Segment EBITDA for the six months ended June 30, 2024
+Added: In the table above, the sum of the individual percentages may not equal the total due to rounding.
(1) The increase in gross margin is attributable to improvements in vehicle procurement costs, which more than offset the negative effects from lower commodities prices.
−Removed: (2) The increase in segment operating expenses as a percentage of revenue reflects (i) a negative leverage effect of 5.2% from decreases in metals revenue, partially offset by (ii) other individually immaterial factors representing a 1.1% favorable impact in the aggregate.
+Added: Additionally, prior year reported gross margin included a 0.2% reduction primarily related to restructuring expenses incurred as part of the 2022 Global Restructuring Plan.
+Added: These costs are excluded from the calculation of Segment EBITDA.
+Added: See Note 8, "Restructuring and Transaction Related Expenses" and Note 17, "Segment and Geographic Information" for further information.
+Added: (2) The increase in segment operating expenses as a percentage of revenue reflects negative leverage effect of 5.6% from decreases in metals revenue, partially offset by other individually immaterial factors representing a 2.1% favorable impact in the aggregate.
Liquidity and Capital Resources
1 unchanged sentence
Our primary sources of liquidity are cash flows from operations and our revolving credit facilities.
−Removed: We utilize our cash flows from operations to fund working capital and capital expenditures, with the excess amounts going towards funding acquisitions, paying down outstanding debt, paying dividends or repurchasing our common stock.
+Added: We utilize our cash flows from operations to fund working capital and capital expenditures, with the excess amounts going towards paying dividends, repurchasing our common stock, paying down outstanding debt, or funding acquisitions.
As we have pursued acquisitions as part of our historical growth strategy, our cash flows from operations have not always been sufficient to cover our investing activities.
2 unchanged sentences
The following table summarizes liquidity data as of the dates indicated (in millions):
−Removed: March 31, 2024 December 31, 2023
+Added: June 30, 2024 December 31, 2023
Capacity under revolving credit facilities $ 2,000 $ 2,000
4 unchanged sentences
Total liquidity $ 1,428 $ 1,275
−Removed: We had $1,246 million available under our revolving credit facilities in place as of March 31, 2024 .
−Removed: Combined with $344 million of cash and cash equivalents at March 31, 2024, we had $1,590 million i n available liquidity, an increase of $315 million from our available liquidity as of December 31, 2023, primarily as a result of reducing our revolving credit facilities borrowings by $274 million with proceeds from the senior notes offering in March 2024 .
−Removed: As of March 31, 2024 we had $4,287 million total debt outstanding and $88 million current debt, including the following senior debt (in millions):
−Removed: March 31, 2024
+Added: We had $1,152 million available under our revolving credit facilities as of June 30, 2024 .
+Added: Combined with $276 million of cash and cash equivalents at June 30, 2024, we had $1,428 million i n available liquidity, an increase of $153 million from our available liquidity as of December 31, 2023, primarily as a result of reducing our revolving credit facilities borrowings by $180 million .
+Added: As of June 30, 2024, we had $4,334 million total debt outstanding and $44 million current debt, including the following senior debt (in millions):
+Added: June 30, 2024
Maturity Date Interest Rate Amount Outstanding
15 unchanged sentences
We believe that our current liquidity, cash expected to be generated by operating activities in future periods and access to capital markets will be sufficient to meet our current operating and capital requirements.
−Removed: Our capital allocation strategy includes spending to support growth driven capital projects, complete synergistic acquisitions, and return stockholder value through the payment of dividends and repurchasing shares of our common stock.
−Removed: A summary of the dividend activity for our common stock for the three months ended March 31, 2024 is as follows:
+Added: Our capital allocation strategy includes spending to support growth driven capital projects, return stockholder value through the payment of dividends and repurchasing shares of our common stock and complete synergistic acquisitions.
+Added: A summary of the dividend activity for our common stock for the six months ended June 30, 2024 is as follows:
Dividend Amount Declaration Date Record Date Payment Date
$0.30 February 20, 2024 March 14, 2024 March 28, 2024
−Removed: On April 22, 2024, our Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on May 30, 2024, to stockholders of record at the close of business on May 16, 2024.
+Added: $0.30 April 22, 2024 May 16, 2024 May 30, 2024
+Added: On July 23, 2024, our Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on August 29, 2024, to stockholders of record at the close of business on August 15, 2024.
We believe that our future cash flow generation will permit us to continue paying dividends in future periods;
however, the timing, amount and frequency of such future dividends will be subject to approval by our Board of Directors, and based on considerations of capital availability, and various other factors, many of which are outside of our control.
−Removed: With $1,590 million of total liquidity as of March 31, 2024 and $88 million of current maturities, we have access to funds to meet our near term commitments.
+Added: With $1,428 million of total liquidity as of June 30, 2024 and $44 million of current maturities, we have access to funds to meet our near term commitments.
We have a surplus of current assets over current liabilities, which further reduces the risk of short-term cash shortfalls.
2 unchanged sentences
The terms maximum total leverage ratio and minimum interest coverage ratio are specifically calculated per both the Senior Unsecured Credit Agreement and CAD Note, and differ in specified ways from comparable GAAP or common usage terms.
−Removed: We were in compliance with all applicable covenants under both our Senior Unsecured Credit Agreement and CAD Note as of March 31, 2024.
−Removed: The required debt covenants per both the Senior Unsecured Credit Agreement and CAD Note and our actual ratios with respect to those covenants are as follows as of March 31, 2024:
−Removed: Covenant Level Ratio Achieved as of March 31, 2024
+Added: We were in compliance with all applicable covenants under both our Senior Unsecured Credit Agreement and CAD Note as of June 30, 2024.
+Added: The required debt covenants per both the Senior Unsecured Credit Agreement and CAD Note and our actual ratios with respect to those covenants are as follows as of June 30, 2024:
+Added: Covenant Level Ratio Achieved as of June 30, 2024
Maximum total leverage ratio 4.00 :
Minimum interest coverage ratio 3.00 :
−Removed: The spread applied to the interest rate on our credit facility borrowings increased in the third quarter of 2023 and remained the same through the first quarter of 2024 as a result of the total leverage ratio rising above 2.0.
+Added: The spread applied to the interest rate on our credit facility borrowings increased in the third quarter of 2023 and remained the same through the second quarter of 2024 as a result of the total leverage ratio rising above 2.0.
The indentures relating to our U.S.
9 unchanged sentences
We hold interest rate swaps to hedge the variable rates on a portion of our credit agreement borrowings.
−Removed: After giving effect to these contracts outstanding, the weighted average interest rate on borrowings outstanding under our Senior Unsecured Credit Agreement was 6.1% at March 31, 2024.
−Removed: Including our senior notes and CAD Note, our overall weighted average interest rate on borrowings was 5.6% at March 31, 2024.
−Removed: Under the Senior Unsecured Credit Agreement, our borrowings bear interest at Secured Overnight Financing Rate (i.e.
−Removed: "SOFR") plus the applicable spread or other risk-free interest rates that are applicable for the specified currency plus a spread.
−Removed: Under the CAD Note, the interest rate may be (i) a forward-looking term rate based on the Canadian Dollar Offer Rate for an interest period chosen by the Company of one or three months or (ii) the Canadian Prime Rate (as defined in the CAD Note), plus in each case a spread.
+Added: After giving effect to these contracts outstanding, the weighted average interest rate on borrowings outstanding under our Senior Unsecured Credit Agreement was 6.2% at June 30, 2024.
+Added: Including our senior notes and CAD Note, our overall weighted average interest rate on borrowings was 5.6% at June 30, 2024.
+Added: Under the Senior Unsecured Credit Agreement, our borrowings bear interest at SOFR plus the applicable spread or other risk-free interest rates that are applicable for the specified currency plus a spread.
+Added: Under the CAD Note, the interest rate may be (i) a forward-looking term rate based on the CORRA for an interest period chosen by the Company of one or three months or (ii) the Canadian Prime Rate (as defined in the CAD Note), plus in each case a spread.
See Note 12, "Long-Term Obligations" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for information related to our borrowings and related interest.
The interest rate swaps are described in Note 13, "Derivative Instruments and Hedging Activities" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q.
−Removed: We had outstanding borrowin gs under our revolving credit facilities and term loans payable of $1,657 million and $1,943 million at March 31, 2024 and December 31, 2023, respectively.
−Removed: Of these amounts, t here wer e no current maturities at March 31, 2024 or December 31, 2023.
−Removed: The scheduled maturities of long-term obligations outstanding at March 31, 2024 are as follows (in millions):
−Removed: Nine months ending December 31, 2024 (1)
+Added: We had outstanding borrowin gs under our revolving credit facilities and term loans payable of $1,746 million and $1,943 million at June 30, 2024 and December 31, 2023, respectively.
+Added: Of these amounts, t here wer e no current maturities at June 30, 2024 or December 31, 2023.
+Added: The scheduled maturities of long-term obligations outstanding at June 30, 2024 are as follows (in millions):
+Added: Six months ending December 31, 2024 (1)
Years ending December 31:
2 unchanged sentences
(1) Long-term obligations maturing by December 31, 2024 include $15 million of short-term debt that may be extended beyond the current year ending December 31, 2024.
−Removed: (2) The total debt amounts presented above reflect the gross values to be repaid (excluding debt issuance costs and unamortized bond discount of $38 million as of March 31, 2024).
−Removed: As of March 31, 2024, the Company had cash and cash equivalents of $344 million, of which $243 million was held by foreign subsidiaries.
+Added: (2) The total debt amounts presented above reflect the gross values to be repaid (excluding debt issuance costs and unamortized bond discounts of $37 million as of June 30, 2024).
+Added: As of June 30, 2024, the Company had cash and cash equivalents of $276 million, of which $225 million was held by foreign subsidiaries.
In general, it is our practice and intention to permanently reinvest the undistributed earnings of our foreign subsidiaries.
7 unchanged sentences
We normally pay for salvage vehicles acquired at salvage auctions and under direct procurement arrangements at the time that we take possession of the vehicles.
−Removed: The following table sets forth a summary of our aftermarket and manufactured inventory procurement for the three months ended March 31, 2024 and 2023 (in millions):
−Removed: Three Months Ended March 31,
−Removed: 2024 2023 Change
+Added: The following table sets forth a summary of our aftermarket and manufactured inventory procurement for the three and six months ended June 30, 2024 and 2023 (in millions):
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2024 2023 Change 2024 2023 Change
Wholesale - North America
1 unchanged sentence
Europe 927 914 13
+Added: 1,884 1,834 50 (2)
Specialty 343 309 34 679 560 119 (3)
Total $ 1,798 $ 1,486 $ 312 $ 3,613 $ 2,930 $ 683
−Removed: (1) Inventory purchases across the Wholesale - North America segment increased in the three months ended March 31, 2024 compared to the prior year period primarily due to the acquisition of Uni-Select.
−Removed: (2) The increase in inventory purchases in our Europe segment included an increase of $18 million attributable to the increase in the value of the pound sterling and euro in the three months ended March 31, 2024 compared to the prior year period.
+Added: (1) Inventory purchases across the Wholesale - North America segment increased in the six months ended June 30, 2024 compared to the prior year period primarily due to the acquisition of Uni-Select.
+Added: (2) The increase in inventory purchases in our Europe segment included an increase of $12 million attributable to the increase in the value of the pound sterling in the six months ended June 30, 2024 compared to the prior year period.
(3) The increase in inventory purchases in the Specialty segment compared to the prior year period was primarily due to decreased inventory purchases in the prior year period to align inventory levels with demand.
−Removed: The following table sets forth a summary of our global wholesale salvage and self service procurement for the three months ended March 31, 2024 and 2023 (in thousands):
−Removed: Three Months Ended March 31,
−Removed: 2024 2023 % Change
+Added: The following table sets forth a summary of our global wholesale salvage and self service procurement for the three and six months ended June 30, 2024 and 2023 (in thousands):
+Added: Three Months Ended June 30, Six Months Ended June 30,
+Added: 2024 2023 % Change 2024 2023 % Change
Wholesale - North America salvage vehicles 66 65 1.5 % 127 129 (1.6) %
1 unchanged sentence
Self Service salvage vehicles 112 143 (21.7) % 223 280 (20.4) %
−Removed: Wholesale - North America salvage purchases in 2024 decreased relative to the prior year period due to working down the backlog caused by ramped up purchasing in the fourth quarter of 2023.
+Added: Wholesale - North America salvage purchases decreased in the six months ended June 30, 2024 relative to the prior year period due to working down the backlog caused by ramped up purchasing in the fourth quarter of 2023.
Self Service salvage purchases in 2024 decreased relative to the prior year period due to a focus on reducing car cost.
1 unchanged sentence
Operating Cash
−Removed: Net cash provided by operating activities for the three months ended March 31, 2023
+Added: Net cash provided by operating activities for the six months ended June 30, 2023
Increase (decrease) due to:
4 unchanged sentences
Other operating activities (142) (2)
−Removed: Net cash provided by operating activities for the three months ended March 31, 2024
+Added: Net cash provided by operating activities for the six months ended June 30, 2024
(1) Cash flows related to our primary working capital accounts can be volatile as the purchases, payments and collections can be timed differently from period to period.
−Removed: • Inventories represented $109 million in incremental cash outflows in the first three months of 2024 compared to the same period of 2023, including $53 million in our Specialty segment due to the benefit in the prior year period of decreasing inventory purchasing levels to align with softening demand, $44 million in our Europe segment, and $21 million in our Wholesale - North America segment, partially offset by our Self Service segment which contributed a $9 million lower cash outflow.
−Removed: • Accounts payable produced $198 million in incremental cash inflows in the first three months of 2024 compared to the same period of 2023 on a consolidated basis.
−Removed: This was primarily attributable to higher cash inflows in our Europe segment of $129 million and $68 million in our Wholesale - North America segment both of which are primarily due to timing of payments.
−Removed: (2) Primarily reflects the aggregate effect of lower cash earnings and higher interest payments (primarily due to higher interest rates and additional borrowings for the Uni-Select Acquisition), partially offset by lower cash paid for taxes during the three months ended March 31, 2024 compared to the same period of 2023.
−Removed: Net cash used in investing activities totaled $88 million and $97 million during the three months ended March 31, 2024 and 2023, respectively.
−Removed: We invested $17 million and $25 million of cash in business acquisitions during the three months ended March 31, 2024 and 2023, respectively.
−Removed: Property, plant and equipment purchases were $66 million in the three months ended March 31, 2024 compared to $70 million in the prior year period.
+Added: • Inventories represented $169 million in incremental cash outflows in the first six months of 2024 compared to the same period of 2023, including $101 million in our Europe segment primarily due to lower purchasing levels in the prior period, $68 million in our Specialty segment due to the benefit in the prior year period of decreasing inventory purchasing levels to align with softening demand and $13 million in our Wholesale - North America segment, partially offset by our Self Service segment which contributed a $13 million lower cash outflow.
+Added: • Accounts payable produced $76 million in incremental cash inflows in the first six months of 2024 compared to the same period of 2023 on a consolidated basis.
+Added: This was primarily attributable to higher cash inflows in our Europe segment of $81 million mainly due to timing of payments.
+Added: (2) Primarily reflects the aggregate effect of lower cash earnings and higher interest payments (primarily due to additional borrowings for the Uni-Select Acquisition and higher interest rates), partially offset by lower cash paid for taxes during the six months ended June 30, 2024 compared to the same period of 2023.
+Added: Net cash used in investing activities totaled $178 million and $185 million during the six months ended June 30, 2024 and 2023, respectively.
+Added: We invested $30 million and $52 million of cash in business acquisitions during the six months ended June 30, 2024 and 2023, respectively.
+Added: Property, plant and equipment purchases were $146 million in the six months ended June 30, 2024 compared to $136 million in the prior year period.
The following table reconciles Net Cash Provided by Operating Activities to Free Cash Flow (in millions):
−Removed: Three Months Ended March 31,
+Added: Six Months Ended June 30,
Net cash provided by operating activities $ 466 $ 703
1 unchanged sentence
Free cash flow $ 320 $ 567
−Removed: For the three months ended March 31, 2024, net cash used in financing activities totaled $113 million compared to $66 million for the same period in 2023.
−Removed: Cash outflows for share repurchases were $30 million and dividends paid were $81 million for the three months ended March 31, 2024 compared to $8 million for share repurchases and $74 million for dividends paid for the same period of 2023.
−Removed: Net debt borrowings (net of unamortized bond discount) were $35 million for the three months ended March 31, 2024 compared to $41 million for the same period of 2023.
+Added: For the six months ended June 30, 2024, net cash used in financing activities totaled $276 million compared to net cash provided by financing activities of $1,099 million for the same period in 2023.
+Added: The decrease is primarily due to proceeds (net of unamortized bond discounts) of $1,394 million from the issuance of the U.S.
+Added: Notes (2028/33) for the six months ended June 30, 2023.
+Added: Cash outflows for share repurchases were $155 million and dividends paid were $161 million for the six months ended June 30, 2024 compared to $8 million for share repurchases and $148 million for dividends paid for the same period of 2023.
+Added: Net debt borrowings (net of unamortized bond discounts) were $80 million for the six months ended June 30, 2024 compared to net repayments on our debt of $90 million (excluding proceeds from the issuance of the U.S.
+Added: Notes (2028/33) of $1,394 million) for the same period of 2023.
We intend to continue to evaluate markets for potential growth through the internal development of distribution centers, processing and sales facilities, and warehouses, through further integration of our facilities, and through selected business acquisitions.
4 unchanged sentences
The guarantees are full and unconditional, joint and several, and subject to certain conditions for release.
−Removed: See Note 12, "Long-Term Obligations" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for information related to the Euro Notes (2031) and Note 19, "Long-Term Obligations" in Item 8 of Part II of our Annual Report on Form 10-K for the year ended December 31, 2023 for information related to the U.S.
+Added: See Note 12, "Long-Term Obligations" to the Unaudited Condensed Consolidated Financial Statements in Part I, Item 1 of this Quarterly Report on Form 10-Q for information related to the Euro Notes (2031) and Note 19, "Long-Term Obligations" in Item 8 of Part II of our 2023 Form 10-K for information related to the U.S.
Notes (2028/2033).
2 unchanged sentences
Summarized Statements of Income (in millions)
−Removed: Three Months Ended
−Removed: March 31, 2024
+Added: Six Months Ended
+Added: June 30, 2024
Fiscal Year Ended
5 unchanged sentences
Net income $ 229 $ 589
−Removed: (1) Guarantor subsidiaries recorded $14 million and $53 million of net sales to and $52 million and $203 million of purchases from non-guarantor subsidiaries for the three months ended March 31, 2024 and fiscal year ended December 31, 2023, respectively.
−Removed: (2) Information reflects the current Obligor Group listed on Form S-3 (File No.
−Removed: 333-277267) filed with the SEC on February 22, 2024.
+Added: (1) Guarantor subsidiaries recorded $27 million and $53 million of net sales to and $104 million and $203 million of purchases from non-guarantor subsidiaries for the six months ended June 30, 2024 and fiscal year ended December 31, 2023, respectively.
+Added: (2) Information reflects the current Obligor Group listed in Exhibit 22.1 in Part II, Item 6 of this Quarterly Report on Form 10-Q.
Summarized Balance Sheets (in millions)
−Removed: March 31, 2024 December 31, 2023 (1)
+Added: June 30, 2024 December 31, 2023 (1)
Current assets $ 2,276 $ 2,167
2 unchanged sentences
Noncurrent liabilities 4,157 4,031
−Removed: (1) Information reflects the current Obligor Group listed on Form S-3 (File No.
−Removed: 333-277267) filed with the SEC on February 22, 2024.
+Added: (1) Information reflects the current Obligor Group listed in Exhibit 22.1 in Part II, Item 6 of this Quarterly Report on Form 10-Q.
+Added: (2) Current liabilities for guarantor subsidiaries included $107 million of short term notes payable to non-guarantor subsidiaries as of June 30, 2024.
Quantitative and Qualitative Disclosures About Market Risk
We are exposed to market risks arising from adverse changes in foreign exchange rates, interest rates, commodity prices and inflation.
−Removed: There have been no material changes to our market risks from what was disclosed in Item 7A of Part II of our Annual Report on Form 10-K for the year ended December 31, 2023.
+Added: There have been no material changes to our market risks from what was disclosed in Item 7A of Part II of our 2023 Form 10-K.
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.