What changed in this filing

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Item 1. Financial Statements

2025-07-24 compared with 2025-04-24 · 186 added, 72 removed, 467 unchanged (36% of the section changed)

3 unchanged sentences

(In millions, except per share data)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Revenue $ 3,642 $ 3,711 $ 7,105 $ 7,414

11 unchanged sentences

Provision for income taxes 68 82 134 153

Equity in losses of unconsolidated subsidiaries 1 2

Equity in (earnings) losses of unconsolidated subsidiaries ( 1 ) ( 2 ) — —

Net income 193 186 362 344

Earnings per share:

Basic $ 0.65 $ 0.59

Diluted $ 0.65 $ 0.59

net income attributable to noncontrolling interest 1 1 1 1

Net income attributable to LKQ stockholders $ 192 $ 185 $ 361 $ 343

Basic earnings per share:

Net income $ 0.75 $ 0.70 $ 1.40 $ 1.29

net income attributable to noncontrolling interest — — — —

Net income attributable to LKQ stockholders $ 0.75 $ 0.70 $ 1.40 $ 1.29

Diluted earnings per share:

Net income $ 0.75 $ 0.70 $ 1.40 $ 1.29

net income attributable to noncontrolling interest — — — —

Net income attributable to LKQ stockholders $ 0.75 $ 0.70 $ 1.40 $ 1.29

The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(In millions)

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net income $ 193 $ 186 $ 362 $ 344

net income attributable to noncontrolling interest 1 1 1 1

Net income attributable to LKQ stockholders 192 185 361 343

Other comprehensive income (loss):

2 unchanged sentences

Net change in unrealized gains/losses on pension plans, net of tax — — 1 —

Other comprehensive income (loss) from unconsolidated subsidiaries 3 ( 5 )

Other comprehensive (loss) income from unconsolidated subsidiaries

( 7 ) 5 ( 4 ) —

Other comprehensive income (loss) 262 ( 15 ) 366 ( 73 )

Comprehensive income 455 171 728 271

comprehensive income attributable to noncontrolling interest 1 1 1 1

Comprehensive income attributable to LKQ stockholders $ 454 $ 170 $ 727 $ 270

The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(In millions, except per share data)

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Current assets:

28 unchanged sentences

Stockholders' equity:

Common stock, $ 0.01 par value, 1,000.0 shares authorized, 323.8 shares issued and 258.3 shares outstanding at March 31, 2025;

Common stock, $ 0.01 par value, 1,000.0 shares authorized, 323.8 shares issued and 257.3 shares outstanding at June 30, 2025;

323.6 shares issued and 259.1 shares outstanding at December 31, 2024

3 unchanged sentences

Treasury stock, at cost;

65.5 shares at March 31, 2025 and 64.5 shares at December 31, 2024

66.5 shares at June 30, 2025 and 64.5 shares at December 31, 2024

( 2,868 ) ( 2,787 )

7 unchanged sentences

(In millions)

Three Months Ended March 31,

Six Months Ended June 30,

CASH FLOWS FROM OPERATING ACTIVITIES:

Net income $ 362 $ 344

Adjustments to reconcile net income to net cash (used in) provided by operating activities:

Adjustments to reconcile net income to net cash provided by operating activities:

Depreciation and amortization 205 200

Stock-based compensation expense 17 16

Other ( 1 ) 57

Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:

5 unchanged sentences

Other liabilities ( 36 ) 3

Net cash (used in) provided by operating activities ( 3 ) 253

Operating lease assets and liabilities ( 1 ) 3

Net cash provided by operating activities 293 466

CASH FLOWS FROM INVESTING ACTIVITIES:

6 unchanged sentences

Repayments under revolving credit facilities ( 600 ) ( 1,104 )

Borrowings of other debt, net 11 33

Repayments of other debt, net ( 23 ) ( 16 )

Proceeds from issuance of Euro Notes (2031), net of unamortized bond discount — 816

3 unchanged sentences

Other financing activities, net 7 ( 40 )

Net cash provided by (used in) financing activities 40 ( 113 )

Net cash used in financing activities ( 169 ) ( 276 )

Effect of exchange rate changes on cash, cash equivalents and restricted cash 29 ( 10 )

Net (decrease) increase in cash, cash equivalents and restricted cash ( 8 ) 45

Net increase in cash, cash equivalents and restricted cash 54 2

Cash, cash equivalents and restricted cash, beginning of period (1)

8 unchanged sentences

(In millions, except per share data)

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

LKQ Stockholders

2 unchanged sentences

Shares Amount Shares Amount

Balance as of April 1, 2025 323.8 $ 3 ( 65.5 ) $ ( 2,827 ) $ 1,558 $ 7,753 $ ( 313 ) $ 15 $ 6,189

Net income — — — — — 192 — 1 193

Other comprehensive income — — — — — — 262 — 262

Purchase of treasury stock — — ( 1.0 ) ( 41 ) — — — — ( 41 )

Stock-based compensation expense — — — — 9 — — — 9

Dividends declared to LKQ stockholders ($0.30 per share) — — — — — ( 78 ) — — ( 78 )

Acquisition of a subsidiary with noncontrolling interest — — — — — — — 9 9

Balance as of June 30, 2025 323.8 $ 3 ( 66.5 ) $ ( 2,868 ) $ 1,567 $ 7,867 $ ( 51 ) $ 25 $ 6,543

Three Months Ended June 30, 2024

LKQ Stockholders

Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated

Comprehensive Loss Noncontrolling Interest Total Stockholders' Equity

Shares Amount Shares Amount

Balance as of April 1, 2024 323.5 $ 3 ( 56.5 ) $ ( 2,454 ) $ 1,541 $ 7,367 $ ( 298 ) $ 14 $ 6,173

Net income — — — — — 185 — 1 186

Other comprehensive loss — — — — — — ( 15 ) — ( 15 )

Purchase of treasury stock — — ( 2.9 ) ( 126 ) — — — — ( 126 )

Vesting of restricted stock units, net of shares withheld for employee tax 0.1 — — — ( 1 ) — — — ( 1 )

Stock-based compensation expense — — — — 8 — — — 8

Dividends declared to LKQ stockholders ($0.30 per share) — — — — — ( 80 ) — — ( 80 )

Purchase of noncontrolling interest — — — — ( 1 ) — — — ( 1 )

Balance as of June 30, 2024 323.6 $ 3 ( 59.4 ) $ ( 2,580 ) $ 1,547 $ 7,472 $ ( 313 ) $ 15 $ 6,144

The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements.

LKQ CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Stockholders' Equity

(In millions, except per share data)

Six Months Ended June 30, 2025

LKQ Stockholders

Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated

Comprehensive Loss Noncontrolling Interest Total Stockholders' Equity

Shares Amount Shares Amount

Balance as of January 1, 2025 323.6 $ 3 ( 64.5 ) $ ( 2,787 ) $ 1,556 $ 7,662 $ ( 417 ) $ 15 $ 6,032

5 unchanged sentences

Dividends declared to LKQ stockholders ($0.60 per share) — — — — — ( 156 ) — — ( 156 )

Balance as of March 31, 2025 323.8 $ 3 ( 65.5 ) $ ( 2,827 ) $ 1,558 $ 7,753 $ ( 313 ) $ 15 $ 6,189

Three Months Ended March 31, 2024

Acquisition of a subsidiary with noncontrolling interest — — — — — — — 9 9

Balance as of June 30, 2025 323.8 $ 3 ( 66.5 ) $ ( 2,868 ) $ 1,567 $ 7,867 $ ( 51 ) $ 25 $ 6,543

Six Months Ended June 30, 2024

LKQ Stockholders

9 unchanged sentences

Dividends declared to LKQ stockholders ($0.60 per share) — — — — — ( 161 ) — — ( 161 )

Balance as of March 31, 2024 323.5 $ 3 ( 56.5 ) $ ( 2,454 ) $ 1,541 $ 7,367 $ ( 298 ) $ 14 $ 6,173

Purchase of noncontrolling interest — — — — ( 1 ) — — — ( 1 )

Balance as of June 30, 2024 323.6 $ 3 ( 59.4 ) $ ( 2,580 ) $ 1,547 $ 7,472 $ ( 313 ) $ 15 $ 6,144

The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements.

23 unchanged sentences

Allowance for Credit Losses

Our allowance for credit losses was $ 52 million and $ 56 million as of March 31, 2025 and December 31, 2024, respectively.

The provision for credit losses was $ 5 million and $ 3 million for the three months ended March 31, 2025 and 2024, respectively.

Our allowance for credit losses was $ 52 million and $ 56 million as of June 30, 2025 and December 31, 2024, respectively.

The provision for credit losses was $ 2 million and $ 1 million for the three months ended June 30, 2025 and 2024 and $ 7 million and $ 4 million for the six months ended June 30, 2025 and 2024, respectively.

Intangible Assets

3 unchanged sentences

Goodwill and indefinite-lived intangible assets impairment testing may also be performed on an interim basis when events or circumstances arise that may lead to impairment.

We did not identify any indicators of impairment in the first three months of 2025 that necessitated an interim test of goodwill impairment or indefinite-lived intangible assets impairment.

We did not identify any indicators of impairment in the first six months of 2025 that necessitated an interim test of goodwill impairment or indefinite-lived intangible assets impairment.

Revenue Recognition

23 unchanged sentences

The following table sets forth our revenue disaggregated by category and reportable segment (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Wholesale - North America $ 1,362 $ 1,398 $ 2,698 $ 2,820

4 unchanged sentences

Wholesale - North America 80 75 156 153

Europe 6 6 13 13

Self Service 79 78 164 161

3 unchanged sentences

Amounts related to variable consideration on our Unaudited Condensed Consolidated Balance Sheets are as follows (in millions):

Classification March 31, 2025 December 31, 2024

Classification June 30, 2025 December 31, 2024

Return asset Prepaid expenses and other current assets $ 68 $ 67

4 unchanged sentences

The following table sets forth our revenue by geographic area (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

United States $ 1,729 $ 1,769 $ 3,410 $ 3,564

21 unchanged sentences

This plan is scheduled to be substantially complete by the end of 2027 with an estimated total incurred cost of between $ 30 million and $ 40 million.

In the future, we may identify additional initiatives under the plan that may result in additional expenditures, although we are currently unable to estimate the range of charges for such potential future initiatives.

Acquisition Integration Plans

1 unchanged sentence

These costs are typically incurred within a year from the acquisition date and vary in magnitude depending on the size and complexity of the related integration activities.

There are no material acquisition integrations plans as of March 31, 2025.

There are no material acquisition integration plans as of June 30, 2025.

The following table sets forth the expenses incurred related to our restructuring plans (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

Plan Expense Type 2025 2024 2025 2024

3 unchanged sentences

Asset impairments (2)

Other costs 1 2

Other (benefits) costs ( 1 ) 5 — 7

Total $ 6 $ 43 $ 16 $ 70

2022 Global Plan Facility exit costs $ — $ 1

2022 Global Plan Employee related costs $ — $ 1 $ — $ 1

Facility exit costs — — — 1

Total $ — $ 1 $ — $ 2

4 unchanged sentences

Facility exit costs — 5 1 9

Other costs — 1

Other (benefits) costs — 2 — 3

Total $ — $ 10 $ 1 $ 16

8 unchanged sentences

Transaction Related Expenses

During the three months ended March 31, 2025 and 2024, we incurred expenses totaling an insignificant amount and $ 2 million, respectively, for legal, accounting and advisory services related to completed and potential transactions.

During the three months ended June 30, 2025 and 2024, we incurred expenses totaling $ 1 million and an insignificant amount, respectively, and during the six months ended June 30, 2025 and 2024 we incurred expenses totaling $ 1 million and $ 2 million, respectively, for legal, accounting and advisory services related to completed and potential transactions.

Earnings Per Share

The following chart sets forth the computation of earnings per share (in millions, except per share amounts):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net Income $ 193 $ 186 $ 362 $ 344

10 unchanged sentences

The components of Accumulated Other Comprehensive Income (Loss) are as follows (in millions):

Three Months Ended March 31, 2025

Foreign Currency Translation Unrealized Gain (Loss) on Cash Flow Hedges Unrealized Gain (Loss) on Pension Plans Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries Accumulated Other Comprehensive Income (Loss)

Balance as of January 1, 2025

Three Months Ended June 30, 2025

Foreign Currency Translation Unrealized Gain (Loss) on Cash Flow Hedges Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries Accumulated Other Comprehensive Income (Loss)

Balance as of April 1, 2025

$ ( 311 ) $ ( 9 ) $ 7 $ ( 313 )

Pretax income

Income tax effect — ( 1 ) — ( 1 )

Reclassification of unrealized loss — 1 — 1

Other comprehensive loss from unconsolidated subsidiaries

— — ( 7 ) ( 7 )

Balance as of June 30, 2025

$ ( 43 ) $ ( 8 ) $ — $ ( 51 )

Three Months Ended June 30, 2024

Balance as of April 1, 2024 $ ( 300 ) $ ( 7 ) $ 6 $ 3 $ ( 298 )

Pretax (loss) income ( 21 ) 3 — — ( 18 )

Income tax effect — ( 1 ) — — ( 1 )

Reclassification of unrealized gain — ( 2 ) — — ( 2 )

Reclassification of deferred income taxes — 1 — — 1

Other comprehensive income from unconsolidated subsidiaries — — — 5 5

Balance as of March 31, 2025

Balance as of June 30, 2024

$ ( 321 ) $ ( 6 ) $ 6 $ 8 $ ( 313 )

Three Months Ended March 31, 2024

Six Months Ended June 30, 2025

Balance as of January 1, 2025 $ ( 411 ) $ ( 9 ) $ ( 1 ) $ 4 $ ( 417 )

Pretax income 368 1 — — 369

Income tax effect — ( 1 ) — — ( 1 )

Reclassification of unrealized loss — 1 — — 1

Reclassification of deferred income taxes — — 1 — 1

Other comprehensive loss from unconsolidated subsidiaries — — — ( 4 ) ( 4 )

Balance as of June 30, 2025

$ ( 43 ) $ ( 8 ) $ — $ — $ ( 51 )

Six Months Ended June 30, 2024

Balance as of January 1, 2024 $ ( 243 ) $ ( 11 ) $ 6 $ 8 $ ( 240 )

Pretax (loss) income ( 78 ) 9 — — ( 69 )

1 unchanged sentence

Reclassification of unrealized gain — ( 3 ) — — ( 3 )

Other comprehensive loss from unconsolidated subsidiaries — — — ( 5 ) ( 5 )

Balance as of March 31, 2024

Reclassification of deferred income taxes — 1 — — 1

Balance as of June 30, 2024

$ ( 321 ) $ ( 6 ) $ 6 $ 8 $ ( 313 )

1 unchanged sentence

Supply Chain Financing

We utilize voluntary supply chain finance programs to support our efforts in negotiating payment term extensions with suppliers as part of our effort to improve our operating cash flows.

As of March 31, 2025 and December 31, 2024, we had $ 418 million and $ 416 million of Accounts payable outstanding under the arrangements, respectively.

We utilize voluntary supply chain finance programs to support our efforts in negotiating payment term extensions with suppliers as a part of our goal to improve our operating cash flows.

As of June 30, 2025 and December 31, 2024, we had $ 450 million and $ 416 million of Accounts payable outstanding under the arrangements, respectively.

Long-Term Obligations

Long-term obligations consist of the following (in millions):

March 31, 2025

June 30, 2025

December 31, 2024

15 unchanged sentences

Other debt 4.57 % (1)

23 4.58 % (1)

Total debt 4,460 4,198

4 unchanged sentences

(1) Interest rate derived via a weighted average

Senior Unsecured Credit Agreement

In the second quarter of 2025, we entered into Amendment No.

3 to the Senior Unsecured Credit Agreement and Amendment No.

2 to the Senior Unsecured Term Loan Agreement.

These amendments extended the maturity date of the Senior Unsecured Credit Agreement term loan facility from January 5, 2026 to January 5, 2027 as well as provided certain other immaterial modifications.

Derivative Instruments and Hedging Activities

7 unchanged sentences

Changes in the fair value of the interest rate swaps are recorded in Accumulated other comprehensive loss and reclassified to Interest expense when the hedged interest payments affect earnings.

The activity related to the interest rate swaps is classified in operating activities in our Unaudited Condensed Consolidated

Statements of Cash Flows as the activity relates to normal recurring settlements to match interest payments.

The activity related to the interest rate swaps is classified in operating activities in our Unaudited Condensed Consolidated Statements of Cash Flows as the activity relates to normal recurring settlements to match interest payments.

All of our interest rate swap contracts have been executed with counterparties that we believe are creditworthy, and we closely monitor the credit ratings of these counterparties.

As of March 31, 2025 and December 31, 2024, the notional amounts, balance sheet classification and fair values of our derivative instruments designated as cash flow hedges were as follows (in millions):

March 31, 2025

As of June 30, 2025 and December 31, 2024, the notional amounts, balance sheet classification and fair values of our derivative instruments designated as cash flow hedges were as follows (in millions):

June 30, 2025

Notional Amount Balance Sheet Caption Fair Value - Asset / (Liability)

Interest rate swap agreement $ 400 Other accrued expenses $ —

Interest rate swap agreement $ 400 Prepaid expenses and other current assets $ —

Interest rate swap agreements 300 Other accrued expenses —

3 unchanged sentences

Interest rate swap agreements 300 Other noncurrent liabilities ( 1 )

The activity related to our cash flow hedges is included in Note 7, "Accumulated Other Comprehensive Income (Loss)." As of March 31, 2025, we estimate that $ 2 million of derivative losses (net of tax) included in Accumulated other comprehensive loss will be reclassified into our Unaudited Condensed Consolidated Statements of Income within the next 12 months.

The activity related to our cash flow hedges is included in Note 7, "Accumulated Other Comprehensive Income (Loss)." As of June 30, 2025, we estimate that $ 1 million of derivative losses (net of tax) included in Accumulated other comprehensive loss will be reclassified into our Unaudited Condensed Consolidated Statements of Income within the next 12 months.

Fair Value Measurements

Financial Assets and Liabilities Measured at Fair Value

We use the market and income approaches to estimate the fair value of our financial assets and liabilities, and during the three months ended March 31, 2025, there were no significant changes in valuation techniques or inputs related to the financial assets or liabilities that we have historically recorded at fair value.

We use the market and income approaches to estimate the fair value of our financial assets and liabilities, and during the three and six months ended June 30, 2025, there were no significant changes in valuation techniques or inputs related to the financial assets or liabilities that we have historically recorded at fair value.

The tiers in the fair value hierarchy include:

2 unchanged sentences

and Level 3, defined as significant unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The following table presents information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs we utilized to determine such fair value as of March 31, 2025 and December 31, 2024 (in millions):

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

14 unchanged sentences

The fair value measurements of the borrowings under the credit agreement are classified as Level 2 within the fair value hierarchy since they are determined based upon significant inputs observable in the market, including interest rates on recent financing transactions with similar terms and maturities.

We estimated the fair value by calculating the upfront cash payment a market participant would require at March 31, 2025 and December 31, 2024 to assume these obligations.

We estimated the fair value by calculating the upfront cash payment a market participant would require at June 30, 2025 and December 31, 2024 to assume these obligations.

The fair values of the 5.75% senior notes due June 2028 (the "U.S.

3 unchanged sentences

Notes (2028/2033)"), the 4.13% senior notes due April 2028 (the "Euro Notes (2028)") and the 4.13% senior notes due March 2031 (the "Euro Notes (2031)") are determined based upon observable market inputs including quoted market prices in markets that are not active, and therefore are classified as Level 2 within the fair value hierarchy.

Based on market conditions as of March 31, 2025 and December 31, 2024, the fair value of the borrowings under the Senior Unsecured Credit Agreement reasonably approximated the carrying values of $ 1,324 million and $ 1,164 million, respectively.

As of both March 31, 2025 and December 31, 2024, the fair value of the borrowings under the Senior Unsecured Term Loan Credit Agreement ("CAD Note") reasonably approximated the carrying value of $ 487 million.

The following table provides the carrying and fair value for our other financial instruments as of March 31, 2025 and December 31, 2024 (in millions):

As of March 31, 2025

Based on market conditions as of June 30, 2025 and December 31, 2024, the fair value of the borrowings under the Senior Unsecured Credit Agreement reasonably approximated the carrying values of $ 1,250 million and $ 1,164 million, respectively.

As of June 30, 2025 and December 31, 2024, the fair value of the borrowings under the Senior Unsecured Term Loan Credit Agreement ("CAD Note") reasonably approximated the carrying values of $ 514 million and $ 487 million, respectively.

The following table provides the carrying and fair value for our other financial instruments as of June 30, 2025 and December 31, 2024 (in millions):

As of June 30, 2025

As of December 31, 2024

6 unchanged sentences

The following table provides a reconciliation of Cash and cash equivalents as reported in the Unaudited Condensed Consolidated Balance Sheets to Cash, cash equivalents and restricted cash shown in the Unaudited Condensed Consolidated Statements of Cash Flows (in millions):

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Cash and cash equivalents $ 289 $ 234

12 unchanged sentences

Wholesale - North America Europe Specialty Self Service Eliminations Consolidated

Three Months Ended March 31, 2025

Three Months Ended June 30, 2025

Third Party $ 1,442 $ 1,607 $ 464 $ 129 $ — $ 3,642

8 unchanged sentences

$ 50 $ 44 $ 8 $ 3 $ — $ 105

Three Months Ended March 31, 2024

Three Months Ended June 30, 2024

Third Party $ 1,473 $ 1,639 $ 466 $ 133 $ — $ 3,711

8 unchanged sentences

$ 48 $ 40 $ 9 $ 3 $ — $ 100

Wholesale - North America Europe Specialty Self Service Eliminations Consolidated

Six Months Ended June 30, 2025

Third Party $ 2,854 $ 3,129 $ 857 $ 265 $ — $ 7,105

Intersegment — — 2 — ( 2 ) —

Total segment revenue $ 2,854 $ 3,129 $ 859 $ 265 $ ( 2 ) $ 7,105

Cost of goods sold 1,608 1,919 646 145

Selling, general and administrative expenses 808 933 158 88

Other segment items (2)

( 11 ) ( 15 ) ( 5 ) ( 1 )

Segment EBITDA $ 449 $ 292 $ 60 $ 33 $ — $ 834

Total depreciation and amortization (3)

$ 99 $ 83 $ 16 $ 7 $ — $ 205

Six Months Ended June 30, 2024

Third Party $ 2,973 $ 3,283 $ 888 $ 270 $ — $ 7,414

Intersegment 1 — 1 — ( 2 ) —

Total segment revenue $ 2,974 $ 3,283 $ 889 $ 270 $ ( 2 ) $ 7,414

Cost of goods sold 1,663 2,041 665 154

Selling, general and administrative expenses 823 949 160 88

Other segment items (2)

( 12 ) ( 24 ) ( 4 ) ( 1 )

Segment EBITDA $ 500 $ 317 $ 68 $ 29 $ — $ 914

Total depreciation and amortization (3)

$ 97 $ 79 $ 17 $ 7 $ — $ 200

(1) The significant expense categories and amounts align with the segment-level information that is regularly provided to the chief operating decision maker ("CODM").

2 unchanged sentences

See Note 5, "Restructuring and Transaction Related Expenses" for additional information on the restructuring charges.

(3) Amounts presented include depreciation and amortization expense recorded within Cost of goods sold, SG&A expenses and Restructuring and transaction related expenses.

(3) Amounts presented include depreciation and amortization expense recorded within Cost of goods sold and Restructuring and transaction related expenses.

The key measure of segment profit or loss reviewed by our CODM, our Chief Executive Officer, is Segment EBITDA.

16 unchanged sentences

The table below provides a reconciliation of Net Income to Segment EBITDA (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Net income $ 193 $ 186 $ 362 $ 344

net income attributable to noncontrolling interest 1 1 1 1

Net income attributable to LKQ stockholders 192 185 361 343

Depreciation and amortization 105 100 205 200

1 unchanged sentence

Provision for income taxes 68 82 134 153

Equity in losses of unconsolidated subsidiaries

Equity in (earnings) losses of unconsolidated subsidiaries ( 1 ) ( 2 ) — —

Equity investment fair value adjustments — 2 ( 1 ) 2

6 unchanged sentences

The following table presents capital expenditures by reportable segment (in millions):

Three Months Ended March 31,

Three Months Ended June 30, Six Months Ended June 30,

2025 2024 2025 2024

Capital Expenditures

Wholesale - North America

$ 16 $ 52 $ 38 $ 73

Europe 32 20 59 58

Specialty 4 5 7 9

1 unchanged sentence

Total capital expenditures $ 53 $ 80 $ 107 $ 146

We re port net receivables;

net property, plant and equipment;

and net operating lease assets by segment as that information is used by the CODM in assessing segment performance.

These assets provide a measure for the operating capital employed in each segment.

Unallocated assets include cash and cash equivalents, prepaid expenses and other current and noncurrent assets, goodwill, other intangibles, and equity method investments.

The following table presents assets by reportable segment (in millions):

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Receivables, net of allowance for credit losses

23 unchanged sentences

Total assets $ 15,944 $ 14,955

We re port net receivables;

net property, plant and equipment;

and net operating lease assets by segment as that information is used by the CODM in assessing segment performance.

These assets provide a measure for the operating capital employed in each segment.

Unallocated assets include cash and cash equivalents, prepaid expenses and other current and noncurrent assets, goodwill, other intangibles and equity method investments.

Our largest countries of operation are the U.S., followed by Germany and the U.K.

2 unchanged sentences

The following table sets forth our tangible long-lived assets by geographic area (in millions):

March 31, 2025 December 31, 2024

June 30, 2025 December 31, 2024

Long-lived assets

4 unchanged sentences

Total long-lived assets $ 3,013 $ 2,905

Subsequent Event

On July 4, 2025, new U.S tax legislation was signed into law, commonly referred to as the One Big Beautiful Bill Act (“OBBBA”), which includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The OBBBA includes the acceleration of fixed asset depreciation, modifications to the capitalization of domestic research and development expenses, modifications to the limitations to the deductibility of interest expense, and modifications to certain international provisions.

These new provisions take effect starting in 2025 through 2027.

We are currently evaluating the impact of this new tax legislation.

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.

What changed 10-Q

Item 1. Financial Statements