Condensed Consolidating Financial Information

LKQ Corporation (the "Parent") issued, and the Guarantors have fully and unconditionally guaranteed, jointly and severally, the U.S. Notes (2023) due on May 15, 2023. A Guarantor's guarantee will be unconditionally and automatically released and discharged upon the occurrence of any of the following events: (i) a transfer (including as a result of consolidation or merger) by the Guarantor to any person that is not a Guarantor of all or substantially all assets and properties of such Guarantor, provided the Guarantor is also released from its obligations with respect to indebtedness under the Credit Agreement or other indebtedness of ours, which obligation gave rise to the guarantee of the U.S. Notes (2023); (ii) a transfer (including as a result of consolidation or merger) to any person that is not a Guarantor of the equity interests of a Guarantor or issuance by a Guarantor of its equity interests such that the Guarantor ceases to be a subsidiary, as defined in the U.S. Notes (2023) Indenture, provided the Guarantor is also released from its obligations with respect to indebtedness under the Credit Agreement or other indebtedness of ours, which obligation gave rise to the guarantee of the U.S. Notes (2023); (iii) the release of the Guarantor from its obligations with respect to indebtedness under the Credit Agreement or other indebtedness of ours, which obligation gave rise to the guarantee of the U.S. Notes (2023); and (iv) upon legal defeasance, covenant defeasance or satisfaction and discharge of the U.S. Notes (2023) Indenture, as defined in the U.S. Notes (2023) Indenture.

Presented below are the unaudited condensed consolidating financial statements of the Parent, the Guarantors, the non-guarantor subsidiaries (the "Non-Guarantors"), and the elimination entries necessary to present our financial statements on a consolidated basis as required by Rule 3-10 of Regulation S-X of the Securities Exchange Act of 1934 resulting from the guarantees of the U.S. Notes (2023). Investments in consolidated subsidiaries have been presented under the equity method of accounting. The principal elimination entries eliminate investments in subsidiaries, intercompany balances, and intercompany revenue and expenses. The unaudited condensed consolidating financial statements below have been prepared from our financial information on the same basis of accounting as the unaudited condensed consolidated financial statements, and may not necessarily be indicative of the financial position, results of operations or cash flows had the Parent, Guarantors and Non-Guarantors operated as independent entities.

LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands)

	For the Three Months Ended March 31, 2018
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenue	$	—		$	1,577,595		$	1,180,242		$	(37,073	)	$	2,720,764
Cost of goods sold	—			945,915			757,951			(37,073		)	1,666,793
Gross margin	—			631,680			422,291			—			1,053,971
Selling, general and administrative expenses	9,130			426,797			330,964			—			766,891
Restructuring and acquisition related expenses	—			330			3,724			—			4,054
Depreciation and amortization	29			24,338			32,091			—			56,458
Operating (loss) income	(9,159		)	180,215			55,512			—			226,568
Other expense (income):
Interest expense, net	18,008			212			10,295			—			28,515
Intercompany interest (income) expense, net	(15,400		)	9,680			5,720			—			—
Other (income) expense, net	(1,015		)	(5,882		)	4,015			—			(2,882		)
Total other expense, net	1,593			4,010			20,030			—			25,633
(Loss) income before (benefit) provision for income taxes	(10,752		)	176,205			35,482			—			200,935
(Benefit) provision for income taxes	(3,904		)	45,877			7,611			—			49,584
Equity in earnings of unconsolidated subsidiaries	—			—			1,412			—			1,412
Equity in earnings (loss) of subsidiaries	159,808			5,110			—			(164,918		)	—
Net income	152,960			135,438			29,283			(164,918		)	152,763
Less: net loss attributable to noncontrolling interest	—			—			(197		)	—			(197		)
Net income attributable to LKQ stockholders	$	152,960		$	135,438		$	29,480		$	(164,918	)	$	152,960

LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Income (In thousands)

	For the Three Months Ended March 31, 2017
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Revenue	$	—		$	1,453,516		$	929,971		$	(40,644	)	$	2,342,843
Cost of goods sold	—			863,375			590,019			(40,644		)	1,412,750
Gross margin	—			590,141			339,952			—			930,093
Selling, general and administrative expenses	9,183			385,528			248,106			—			642,817
Restructuring and acquisition related expenses	—			1,883			1,045			—			2,928
Depreciation and amortization	30			23,481			25,145			—			48,656
Operating (loss) income	(9,213		)	179,249			65,656			—			235,692
Other expense (income):
Interest expense, net	16,180			198			7,610			—			23,988
Intercompany interest (income) expense, net	(5,672		)	1,019			4,653			—			—
Other expense (income), net	291			(169		)	(1,168		)	—			(1,046		)
Total other expense, net	10,799			1,048			11,095			—			22,942
(Loss) income from continuing operations before (benefit) provision for income taxes	(20,012		)	178,201			54,561			—			212,750
(Benefit) provision for income taxes	(7,437		)	70,038			9,554			—			72,155
Equity in (loss) earnings of unconsolidated subsidiaries	(182		)	—			396			—			214
Equity in earnings of subsidiaries	153,566			4,813			—			(158,379		)	—
Income from continuing operations	140,809			112,976			45,403			(158,379		)	140,809
Net (loss) income from discontinued operations	(4,531		)	(4,531		)	2,050			2,481			(4,531		)
Net income	$	136,278		$	108,445		$	47,453		$	(155,898	)	$	136,278

LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands)

	For the Three Months Ended March 31, 2018
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net income	$	152,960		$	135,438		$	29,283		$	(164,918	)	$	152,763
Less: net loss attributable to noncontrolling interest	—			—			(197		)	—			(197		)
Net income attributable to LKQ stockholders	152,960			135,438			29,480			(164,918		)	152,960

Other comprehensive income (loss):
Foreign currency translation, net of tax	48,485			(2,183		)	49,055			(46,872		)	48,485
Net change in unrealized gains/losses on cash flow hedges, net of tax	3,254			—			—			—			3,254
Net change in unrealized gains/losses on pension plans, net of tax	(621		)	(621		)	—			621			(621		)
Net change in other comprehensive loss from unconsolidated subsidiaries	(605		)	—			(605		)	605			(605		)
Other comprehensive income (loss)	50,513			(2,804		)	48,450			(45,646		)	50,513

Comprehensive income	203,473			132,634			77,733			(210,564		)	203,276
Less: comprehensive loss attributable to noncontrolling interest	—			—			(197		)	—			(197		)
Comprehensive income attributable to LKQ stockholders	$	203,473		$	132,634		$	77,930		$	(210,564	)	$	203,473

LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Comprehensive Income (In thousands)

	For the Three Months Ended March 31, 2017
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
Net income	$	136,278		$	108,445		$	47,453		$	(155,898	)	$	136,278
Other comprehensive income (loss):
Foreign currency translation, net of tax	21,579			3,878			21,132			(25,010		)	21,579
Net change in unrealized gains/losses on cash flow hedges, net of tax	3,163			(133		)	—			133			3,163
Net change in unrealized gains/losses on pension plans, net of tax	(3,041		)	(2,805		)	(236		)	3,041			(3,041		)
Net change in other comprehensive loss from unconsolidated subsidiaries	(162		)	—			(162		)	162			(162		)
Other comprehensive income	21,539			940			20,734			(21,674		)	21,539
Total comprehensive income	$	157,817		$	109,385		$	68,187		$	(177,572	)	$	157,817

LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Balance Sheets (In thousands)

	March 31, 2018
	Parent		Guarantors		Non-Guarantors		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	17,340	$	28,975	$	199,364	$	—		$	245,679
Receivables, net	843		372,264		838,681		—			1,211,788
Intercompany receivables, net	6,747		—		21,170		(27,917		)	—
Inventories	—		1,319,468		1,081,841		—			2,401,309
Prepaid expenses and other current assets	1,864		94,231		84,272		—			180,367
Total current assets	26,794		1,814,938		2,225,328		(27,917		)	4,039,143
Property, plant and equipment, net	904		569,829		359,023		—			929,756
Intangible assets:
Goodwill	—		2,005,814		1,566,384		—			3,572,198
Other intangibles, net	—		289,057		451,747		—			740,804
Investment in subsidiaries	5,355,015		105,772		—		(5,460,787		)	—
Intercompany notes receivable	1,143,818		32,777		—		(1,176,595		)	—
Equity method investments	—		336		207,874		—			208,210
Other assets	79,657		36,403		30,007		—			146,067
Total assets	$	6,606,188	$	4,854,926	$	4,840,363	$	(6,665,299	)	$	9,636,178
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	8,407	$	358,971	$	445,283	$	—		$	812,661
Intercompany payables, net	—		21,170		6,747		(27,917		)	—
Accrued expenses:
Accrued payroll-related liabilities	5,224		34,590		72,326		—			112,140
Other accrued expenses	12,360		101,274		153,730		—			267,364
Refund liability	—		54,270		44,909		—			99,179
Other current liabilities	6,224		19,255		15,688		—			41,167
Current portion of long-term obligations	20,863		1,912		119,502		—			142,277
Total current liabilities	53,078		591,442		858,185		(27,917		)	1,474,788
Long-term obligations, excluding current portion	1,956,376		7,341		1,207,071		—			3,170,788
Intercompany notes payable	—		657,601		518,994		(1,176,595		)	—
Deferred income taxes	13,345		115,736		113,145		—			242,226
Other noncurrent liabilities	176,802		102,559		50,034		—			329,395
Stockholders' equity:
Total Company stockholders’ equity	4,406,587		3,380,247		2,080,540		(5,460,787		)	4,406,587
Noncontrolling interest	—		—		12,394		—			12,394
Total stockholders’ equity	4,406,587		3,380,247		2,092,934		(5,460,787		)	4,418,981
Total liabilities and stockholders' equity	$	6,606,188	$	4,854,926	$	4,840,363	$	(6,665,299	)	$	9,636,178

LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Balance Sheets (In thousands)

	December 31, 2017
	Parent		Guarantors		Non-Guarantors		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	34,360	$	35,131	$	210,275	$	—		$	279,766
Receivables, net	—		290,958		736,148		—			1,027,106
Intercompany receivables, net	2,669		3,010		230		(5,909		)	—
Inventories	—		1,334,766		1,046,017		—			2,380,783
Prepaid expenses and other current assets	34,136		44,849		55,494		—			134,479
Total current assets	71,165		1,708,714		2,048,164		(5,909		)	3,822,134
Property, plant and equipment, net	910		563,262		348,917		—			913,089
Intangible assets:
Goodwill	—		2,010,209		1,526,302		—			3,536,511
Other intangibles, net	—		291,036		452,733		—			743,769
Investment in subsidiaries	5,952,687		102,931		—		(6,055,618		)	—
Intercompany notes receivable	1,156,550		782,638		—		(1,939,188		)	—
Equity method investments	—		336		208,068		—			208,404
Other assets	70,590		33,597		38,778		—			142,965
Total assets	$	7,251,902	$	5,492,723	$	4,622,962	$	(8,000,715	)	$	9,366,872
Liabilities and Stockholders’ Equity
Current liabilities:
Accounts payable	$	5,742	$	340,951	$	441,920	$	—		$	788,613
Intercompany payables, net	—		230		5,679		(5,909		)	—
Accrued expenses:
Accrued payroll-related liabilities	9,448		65,811		68,165		—			143,424
Other accrued expenses	5,219		95,900		117,481		—			218,600
Other current liabilities	282		27,066		18,379		—			45,727
Current portion of long-term obligations	16,468		1,912		107,980		—			126,360
Total current liabilities	37,159		531,870		759,604		(5,909		)	1,322,724
Long-term obligations, excluding current portion	2,095,826		7,372		1,174,422		—			3,277,620
Intercompany notes payable	750,000		677,708		511,480		(1,939,188		)	—
Deferred income taxes	12,402		116,021		123,936		—			252,359
Other noncurrent liabilities	158,346		101,189		47,981		—			307,516
Stockholders' equity:
Total Company stockholders’ equity	4,198,169		4,058,563		1,997,055		(6,055,618		)	4,198,169
Noncontrolling interest	—		—		8,484		—			8,484
Total stockholders’ equity	4,198,169		4,058,563		2,005,539		(6,055,618		)	4,206,653
Total liabilities and stockholders' equity	$	7,251,902	$	5,492,723	$	4,622,962	$	(8,000,715	)	$	9,366,872

LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Cash Flows (In thousands)

	For the Three Months Ended March 31, 2018
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities	$	95,942		$	96,517		$	243		$	(47,539	)	$	145,163
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	(163		)	(29,908		)	(32,118		)	—			(62,189		)
Investment and intercompany note activity with subsidiaries	24,333			—			—			(24,333		)	—
Acquisitions, net of cash acquired	—			(2,966		)	—			—			(2,966		)
Payments of deferred purchase price on receivables securitization	—			7,456			—			(7,456		)	—
Other investing activities, net	—			(145		)	679			—			534
Net cash provided by (used in) investing activities	24,170			(25,563		)	(31,439		)	(31,789		)	(64,621		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	2,255			—			—			—			2,255
Taxes paid related to net share settlements of stock-based compensation awards	(3,292		)	—			—			—			(3,292		)
Debt issuance costs	(724		)	—			—			—			(724		)
Borrowings under revolving credit facilities	161,000			—			40,669			—			201,669
Repayments under revolving credit facilities	(291,966		)	—			(29,559		)	—			(321,525		)
Repayments under term loans	(4,405		)	—			—			—			(4,405		)
(Repayments) borrowings of other debt, net	—			(30		)	4,439			—			4,409
Other financing activities, net	—			—			4,107			—			4,107
Investment and intercompany note activity with parent	—			(21,759		)	(2,574		)	24,333			—
Dividends	—			(54,995		)	—			54,995			—
Net cash (used in) provided by financing activities	(137,132		)	(76,784		)	17,082			79,328			(117,506		)
Effect of exchange rate changes on cash and cash equivalents	—			(326		)	3,203			—			2,877
Net decrease in cash and cash equivalents	(17,020		)	(6,156		)	(10,911		)	—			(34,087		)
Cash and cash equivalents, beginning of period	34,360			35,131			210,275			—			279,766
Cash and cash equivalents, end of period	$	17,340		$	28,975		$	199,364		$	—		$	245,679

LKQ CORPORATION AND SUBSIDIARIES Unaudited Condensed Consolidating Statements of Cash Flows (In thousands)

	For the Three Months Ended March 31, 2017
	Parent			Guarantors			Non-Guarantors			Eliminations			Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by operating activities	$	118,537		$	106,243		$	35,789		$	(88,276	)	$	172,293
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment	—			(18,226		)	(26,172		)	—			(44,398		)
Investment and intercompany note activity with subsidiaries	249,828			—			—			(249,828		)	—
Acquisitions, net of cash acquired	—			(74,937		)	(2,119		)	—			(77,056		)
Proceeds from disposals of business/investment	—			305,740			(4,443		)	—			301,297
Payments of deferred purchase price on receivables securitization ⁽¹⁾	—			6,362			—			(6,362		)	—
Other investing activities, net	—			1,008			306			—			1,314
Net cash provided by (used in) investing activities	249,828			219,947			(32,428		)	(256,190		)	181,157
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from exercise of stock options	2,464			—			—			—			2,464
Taxes paid related to net share settlements of stock-based compensation awards	(3,644		)	—			—			—			(3,644		)
Borrowings under revolving credit facilities	10,000			—			35,239			—			45,239
Repayments under revolving credit facilities	(376,966		)	—			(12,347		)	—			(389,313		)
Repayments under term loans	(9,295		)	—			—			—			(9,295		)
Repayments under receivables securitization facility	—			—			(150		)	—			(150		)
(Repayments) borrowings of other debt, net	(1,698		)	(1,099		)	26,110			—			23,313
Other financing activities, net	—			5,000			—			—			5,000
Investment and intercompany note activity with parent	—			(246,463		)	(3,365		)	249,828			—
Dividends	—			(94,638		)	—			94,638			—
Net cash (used in) provided by financing activities	(379,139		)	(337,200		)	45,487			344,466			(326,386		)
Effect of exchange rate changes on cash and cash equivalents	—			30			3,004			—			3,034
Net (decrease) increase in cash and cash equivalents	(10,774		)	(10,980		)	51,852			—			30,098
Cash and cash equivalents of continuing operations, beginning of period	33,030			35,360			159,010			—			227,400
Add: Cash and cash equivalents of discontinued operations, beginning of period	—			149			6,967			—			7,116
Cash and cash equivalents of continuing and discontinued operations, beginning of period	33,030			35,509			165,977			—			234,516
Cash and cash equivalents, end of period	$	22,256		$	24,529		$	217,829		$	—		$	264,614

⁽¹⁾ Reflects the impact of adopting ASU 2016-15