LKQ Corporation has released its 10-K report, detailing its operations as a global distributor of vehicle products, including replacement parts, components, and systems used in the repair and maintenance of vehicles, as well as specialty aftermarket products and accessories. The company operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service, serving various markets in the United States, Canada, the United Kingdom, Germany, and other European countries.
In the year ended December 31, 2023, LKQ reported that parts and services revenue represented 95.0% of its consolidated revenue. The company's operating results have historically fluctuated on a quarterly and annual basis due to various factors, some of which are beyond its control. LKQ highlighted that its operating results in future periods can be expected to fluctuate due to unknown factors.
LKQ also discussed its growth strategy, focusing on both organic growth and acquisitions. In August 2023, the company completed the acquisition of Uni-Select, which complements its existing North American paint distribution operations and provides a scaled position in the Canadian mechanical parts space.
The company's financial report also addressed critical accounting estimates, including goodwill impairment and business combinations. LKQ noted that it performed a quantitative impairment test for its goodwill in fiscal year 2023, with no impairment charges recorded as a result of the testing. Additionally, the report mentioned the 1 LKQ Europe plan, a multi-year plan aimed at creating structural centralization and standardization of key functions to facilitate the operation of the Europe segment as a single business.
Furthermore, LKQ provided information on its revenue sources, critical accounting estimates, and recent accounting pronouncements, offering a comprehensive overview of its financial condition and results of operations.
Overall, the 10-K report provides a detailed insight into LKQ Corporation's business operations, financial performance, and strategic initiatives, reflecting the company's position as a global leader in the distribution of vehicle products. Today the company's shares have moved 3.1% to a price of $51.86. For more information, read the company's full 10-K submission here.
