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Elliott Drives to Third-Place Finish in Second Duel at Daytona


NAPA

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  • Chase Elliott was 14th fastest in Wednesday night’s DAYTONA 500 qualifying, putting him in the second Duel at Daytona International Speedway on Thursday evening.
  • The 2020 NASCAR Cup Series champion started the second Duel from the seventh position and battled inside the top 10 for a majority of the race, ultimately crossing the line in third with his No. 9
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    Chevrolet Camaro ZL1.
  • With the third-place result, Elliott will line up eighth for Sunday’s 65th running of the DAYTONA 500.

After laying down the 14th fastest lap in Wednesday night’s DAYTONA 500 qualifying, Chase Elliott started seventh in the second Duel on Thursday evening at Daytona International Speedway. From the drop of the green flag, the Dawsonville, Georgia, native maintained his top-10 running position and was in seventh when the first caution of the night came out on lap seven for debris on the backstretch. Under the yellow flag, Elliott reported that he liked the way his No. 9 NAPA Auto Parts Chevrolet Camaro ZL1 drove. After a fuel-only pit stop by the No. 9 crew, the 27-year-old driver lined up seventh for the restart on lap 10.

#9: Chase Elliott, Hendrick Motorsports, NAPA Auto Parts Chevrolet Camaro

As a long green-flag run ensued, the field began to run single-file. Elliott was running in the sixth position until he made a move to the outside with 21 laps to go. Just two laps later the caution flag waved for a multi-car incident on the backstretch. The 2020 NASCAR Cup Series champion narrowly escaped the melee and was scored in the 10th position. The team made another fuel-only pit stop and then decided to bring the NAPA Auto Parts Chevrolet back in for four fresh tires. Elliott restarted just outside the top 10 with 14 laps remaining and maneuvered his way to ninth within two laps. He continued to improve his position from there, making moves on the final lap to score a third-place finish.

With the third-place result, Elliott will start eighth in Sunday’s 65th running of the DAYTONA 500.

#9: Chase Elliott, Hendrick Motorsports, NAPA Auto Parts Chevrolet Camaro

“I had a pretty good run going. Austin (Hill) blocked that and then that kind of stalled the top,” Elliott said. “Then from there, we got really lucky because whoever got loose made a great save up there because I thought we were all wrecked. It was good to get back to third there and get a good start for Sunday. We will try and make our No. 9 NAPA Auto Parts Chevy drive a little better; keep the same pace and I think we’ll be alright.”

Start / Finish: 7/ 3

Next Race: Sunday, February 19, Daytona International Speedway
How to Watch or Listen: 2:00 p.m. ET on FOX, MRN and SiriusXM

NAPA: 

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      link hidden, please login to view) and on the SEC's website ( link hidden, please login to view). These factors include the following (not necessarily in order of importance):
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the amount and frequency of our share repurchases and dividend payments may fluctuate; existing or new laws and regulations, or changes to enforcement or interpretation of existing laws or regulations, may prohibit, restrict or burden the sale of aftermarket, recycled, refurbished or remanufactured products; we are subject to environmental regulations and incur costs relating to environmental matters; if we fail to maintain proper and effective internal control over financial reporting in the future, our ability to produce accurate and timely financial statements could be negatively impacted, which could harm our operating results and investor perceptions of our company and as a result may have a material adverse effect on the value of our common stock; we may be adversely affected by legal, regulatory or market responses to global climate change; our amended and restated bylaws provide that the courts in the State of Delaware are the exclusive forums for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees; 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our business may be adversely affected by union activities and labor and employment laws; we rely on information technology and communication systems in critical areas of our operations and a disruption relating to such technology could harm our business; business interruptions in our distribution centers or other facilities may affect our operations, the function of our computer systems, and/or the availability and distribution of merchandise, which may affect our business; if we experience problems with our fleet of trucks and other vehicles, our business could be harmed; we may lose the right to operate at key locations; and activist investors could cause us to incur substantial costs, divert management’s attention, and have an adverse effect on our business. 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      (312) 621-2793

      link hidden, please login to view LKQ CORPORATION AND SUBSIDIARIES
      Unaudited Condensed Consolidated Statements of Income, with Supplementary Data
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      LKQ CORPORATION AND SUBSIDIARIES
      Unaudited Condensed Consolidated Statements of Income, with Supplementary Data
      (In millions, except per share data)     Six Months Ended June 30,     2024       2023                 % of
      Revenue (2)       % of
      Revenue (2)   $ Change   % Change Revenue $ 7,414     100.0 %   $ 6,797     100.0 %   $ 617     9.1 % Cost of goods sold   4,521     61.0 %     4,011     59.0 %     510     12.7 % Gross margin   2,893     39.0 %     2,786     41.0 %     107     3.8 % Selling, general and administrative expenses   2,020     27.2 %     1,869     27.5 %     151     8.1 % Restructuring and transaction related expenses   79     1.1 %     26     0.4 %     53     n/m Depreciation and amortization   176     2.4 %     119     1.7 %     57     47.9 % Operating income   618     8.3 %     772     11.4 %     (154 )   (19.9 )% Other expense (income):                       Interest expense   130     1.8 %     88     1.3 %     42     47.7 % Gains on foreign exchange contracts - acquisition related (1)   —     — %     (46 )   (0.7 )%     46     n/m Interest income and other income, net   (9 )   (0.1 )%     (20 )   (0.3 )%     11     (55.0 )% Total other expense, net   121     1.6 %     22     0.3 %     99     n/m Income before provision for income taxes   497     6.7 %     750     11.0 %     (253 )   (33.7 )% Provision for income taxes   153     2.1 %     203     3.0 %     (50 )   (24.6 )% Equity in earnings of unconsolidated subsidiaries   —     — %     5     0.1 %     (5 )   n/m Net income   344     4.6 %     552     8.1 %     (208 )   (37.7 )% Less: net income attributable to noncontrolling interest   1     — %     1     — %     —     n/m Net income attributable to LKQ stockholders $ 343     4.6 %   $ 551     8.1 %   $ (208 )   (37.7 )%                         Basic earnings per share:                       Net income $ 1.29         $ 2.06         $ (0.77 )   (37.4 )% Less: net income attributable to noncontrolling interest   —           —           —     — % Net income attributable to LKQ stockholders $ 1.29         $ 2.06         $ (0.77 )   (37.4 )%                         Diluted earnings per share:                       Net income $ 1.29         $ 2.06         $ (0.77 )   (37.4 )% Less: net income attributable to noncontrolling interest   —           —           —     — % Net income attributable to LKQ stockholders $ 1.29         $ 2.06         $ (0.77 )   (37.4 )%                         Weighted average common shares outstanding:                       Basic   266.2           267.5           (1.3 )   (0.5 )% Diluted   266.7           268.3           (1.6 )   (0.6 )% (1) Related to the Uni-Select acquisition. (2) The sum of the individual percentage of revenue components may not equal the total due to rounding.  
      LKQ CORPORATION AND SUBSIDIARIES
      Unaudited Condensed Consolidated Balance Sheets
      (In millions, except per share data)     June 30,
      2024   December 31,
      2023 Assets       Current assets:       Cash and cash equivalents $ 276     $ 299   Receivables, net of allowance for credit losses   1,360       1,165   Inventories   3,064       3,121   Prepaid expenses and other current assets   385       283   Total current assets   5,085       4,868   Property, plant and equipment, net   1,509       1,516   Operating lease assets, net   1,364       1,336   Goodwill   5,530       5,600   Other intangibles, net   1,233       1,313   Equity method investments   157       159   Other noncurrent assets   333       287   Total assets $ 15,211     $ 15,079   Liabilities and Stockholders’ Equity       Current liabilities:       Accounts payable $ 1,764     $ 1,648   Accrued expenses:       Accrued payroll-related liabilities   199       260   Refund liability   134       132   Other accrued expenses   353       309   Current portion of operating lease liabilities   238       224   Current portion of long-term obligations   44       596   Other current liabilities   172       149   Total current liabilities   2,904       3,318   Long-term operating lease liabilities, excluding current portion   1,179       1,163   Long-term obligations, excluding current portion   4,253       3,655   Deferred income taxes   425       448   Other noncurrent liabilities   306       314   Commitments and contingencies       Stockholders’ equity:       Common stock, $0.01 par value, 1,000.0 shares authorized, 323.6 shares issued and 264.2 shares outstanding at June 30, 2024; 323.1 shares issued and 267.2 shares outstanding at December 31, 2023   3       3   Additional paid-in capital   1,547       1,538   Retained earnings   7,472       7,290   Accumulated other comprehensive loss   (313 )     (240 ) Treasury stock, at cost; 59.4 shares at June 30, 2024 and 55.9 shares at December 31, 2023   (2,580 )     (2,424 ) Total Company stockholders’ equity   6,129       6,167   Noncontrolling interest   15       14   Total stockholders’ equity   6,144       6,181   Total liabilities and stockholders’ equity $ 15,211     $ 15,079    
      LKQ CORPORATION AND SUBSIDIARIES
      Unaudited Condensed Consolidated Statements of Cash Flows
      (In millions)     Six Months Ended June 30,     2024       2023   CASH FLOWS FROM OPERATING ACTIVITIES:       Net income $ 344     $ 552   Adjustments to reconcile net income to net cash provided by operating activities:       Depreciation and amortization   200       135   Stock-based compensation expense   16       20   Gains on foreign exchange contracts - acquisition related   —       (46 ) Other   57       37   Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:       Receivables   (225 )     (223 ) Inventories   (37 )     132   Prepaid income taxes/income taxes payable   (10 )     (5 ) Accounts payable   180       104   Other operating assets and liabilities   (59 )     (3 ) Net cash provided by operating activities   466       703   CASH FLOWS FROM INVESTING ACTIVITIES:       Purchases of property, plant and equipment   (146 )     (136 ) Acquisitions, net of cash acquired   (30 )     (52 ) Other investing activities, net   (2 )     3   Net cash used in investing activities   (178 )     (185 ) CASH FLOWS FROM FINANCING ACTIVITIES:       Debt issuance costs   (7 )     (30 ) Proceeds from issuance of U.S. Notes (2028/33), net of unamortized bond discount   —       1,394   Proceeds from issuance of Euro Notes (2031), net of unamortized bond discount   816       —   Repayment of Euro Notes (2024)   (547 )     —   Borrowings under revolving credit facilities   931       1,693   Repayments under revolving credit facilities   (1,104 )     (2,267 ) Borrowings under term loans   —       500   Repayments of other debt, net   (16 )     (16 ) Settlement of derivative instruments   3       (13 ) Dividends paid to LKQ stockholders   (161 )     (148 ) Purchase of treasury stock   (155 )     (8 ) Other financing activities, net   (36 )     (6 ) Net cash (used in) provided by financing activities   (276 )     1,099   Effect of exchange rate changes on cash, cash equivalents and restricted cash   (10 )     9   Net increase in cash, cash equivalents and restricted cash   2       1,626   Cash and cash equivalents, beginning of period   299       278   Cash, cash equivalents and restricted cash, end of period (1) $ 301     $ 1,904   (1) For the period ended June 30, 2024, includes $25 million of restricted cash included in Other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets.
      The following unaudited tables compare certain third party revenue categories:
        Three Months Ended June 30,     (In millions) 2024   2023   $ Change   % Change Wholesale - North America $ 1,398   $ 1,121   $ 277     24.8 % Europe   1,633     1,633     —     — % Specialty   466     442     24     5.2 % Self Service   55     63     (8 )   (11.1 )% Parts and services   3,552     3,259     293     9.0 % Wholesale - North America   75     78     (3 )   (3.6 )% Europe   6     5     1     10.1 % Self Service   78     106     (28 )   (26.7 )% Other   159     189     (30 )   (16.2 )% Total revenue $ 3,711   $ 3,448   $ 263     7.6 %
      Revenue changes by category for the three months ended June 30, 2024 vs. 2023:
        Revenue Change Attributable to:       Organic (1)   Acquisition and Divestiture   Foreign Exchange   Total Change (2) Wholesale - North America (5.3 )%   30.2 %   (0.1 )%   24.8 % Europe 0.3 %   0.8 %   (1.1 )%   — % Specialty (2.1 )%   7.4 %   (0.2 )%   5.2 % Self Service (11.1 )%   — %   — %   (11.1 )% Parts and services (2.1 )%   11.8 %   (0.6 )%   9.0 % Wholesale - North America (4.0 )%   0.5 %   (0.1 )%   (3.6 )% Europe 10.9 %   — %   (0.8 )%   10.1 % Self Service (26.7 )%   — %   — %   (26.7 )% Other (16.3 )%   0.2 %   (0.1 )%   (16.2 )% Total revenue (2.9 )%   11.1 %   (0.6 )%   7.6 % (1) We define organic revenue growth as total revenue growth from continuing operations excluding the effects of acquisitions and divestitures (i.e., revenue generated from the date of acquisition to the first anniversary of that acquisition, net of reduced revenue due to the disposal of businesses) and foreign currency movements (i.e., impact of translating revenue at different exchange rates). Organic revenue growth includes incremental sales from both existing and new (i.e., opened within the last twelve months) locations and is derived from expanding business with existing customers, securing new customers and offering additional products and services. We believe that organic revenue growth is a key performance indicator as this statistic measures our ability to serve and grow our customer base successfully.
      (2) The sum of the individual revenue change components may not equal the total percentage change due to rounding.
      The following unaudited tables compare certain third party revenue categories:
        Six Months Ended June 30,     (In millions) 2024   2023   $ Change   % Change Wholesale - North America $ 2,820   $ 2,269   $ 551     24.3 % Europe   3,270     3,181     89     2.8 % Specialty   888     838     50     5.9 % Self Service   109     123     (14 )   (10.8 )% Parts and services   7,087     6,411     676     10.5 % Wholesale - North America   153     159     (6 )   (3.7 )% Europe   13     12     1     10.2 % Self Service   161     215     (54 )   (25.4 )% Other   327     386     (59 )   (15.4 )% Total revenue $ 7,414   $ 6,797   $ 617     9.1 %
      Revenue changes by category for the six months ended June 30, 2024 vs. 2023:
        Revenue Change Attributable to:       Organic (1)   Acquisition and Divestiture   Foreign Exchange   Total Change (2) Wholesale - North America (4.3 )%   28.6 %   — %   24.3 % Europe 1.5 %   1.1 %   0.2 %   2.8 % Specialty (1.8 )%   7.7 %   (0.1 )%   5.9 % Self Service (10.8 )%   — %   — %   (10.8 )% Parts and services (1.2 )%   11.7 %   0.1 %   10.5 % Wholesale - North America (4.4 )%   0.8 %   — %   (3.7 )% Europe 9.8 %   — %   0.3 %   10.2 % Self Service (25.4 )%   — %   — %   (25.4 )% Other (15.7 )%   0.3 %   — %   (15.4 )% Total revenue (2.0 )%   11.0 %   0.1 %   9.1 % (1) We define organic revenue growth as total revenue growth from continuing operations excluding the effects of acquisitions and divestitures (i.e., revenue generated from the date of acquisition to the first anniversary of that acquisition, net of reduced revenue due to the disposal of businesses) and foreign currency movements (i.e., impact of translating revenue at different exchange rates). Organic revenue growth includes incremental sales from both existing and new (i.e., opened within the last twelve months) locations and is derived from expanding business with existing customers, securing new customers and offering additional products and services. We believe that organic revenue growth is a key performance indicator as this statistic measures our ability to serve and grow our customer base successfully.
      (2) The sum of the individual revenue change components may not equal the total percentage change due to rounding.
      The following unaudited table reconciles revenue and revenue growth for parts & services and total revenue to constant currency revenue and revenue growth for the same measures:
          Three Months Ended
      June 30, 2024   Six Months Ended
      June 30, 2024 (In millions)   Consolidated   Europe   Consolidated   Europe Parts & Services                 Revenue as reported   $ 3,552     $ 1,633     $ 7,087   $ 3,270 Less: Currency impact     (21 )     (18 )     6     8 Revenue at constant currency   $ 3,573     $ 1,651     $ 7,081   $ 3,262                   Total                 Revenue as reported   $ 3,711         $ 7,414     Less: Currency impact     (21 )         6     Revenue at constant currency   $ 3,732         $ 7,408      
          Three Months Ended
      June 30, 2024   Six Months Ended
      June 30, 2024     Consolidated   Europe   Consolidated   Europe Parts & Services                 Revenue growth as reported   9.0 %   — %   10.5 %   2.8 % Less: Currency impact   (0.6 )%   (1.1 )%   0.1 %   0.2 % Revenue growth at constant currency   9.6 %   1.1 %   10.4 %   2.6 %                   Total                 Revenue growth as reported   7.6 %       9.1 %     Less: Currency impact   (0.6 )%       0.1 %     Revenue growth at constant currency   8.2 %       9.0 %     We have presented our revenue and the growth rate on both an as reported and a constant currency basis. The constant currency presentation, which is a non-GAAP financial measure, excludes the impact of fluctuations in foreign currency exchange rates. We believe providing constant currency revenue information provides valuable supplemental information regarding our growth, consistent with how we evaluate our performance, as this statistic removes the translation impact of exchange rate fluctuations, which are outside of our control and do not reflect our operational performance. Constant currency revenue results are calculated by translating prior year revenue in local currency using the current year's currency conversion rate. This non-GAAP financial measure has limitations as an analytical tool and should not be considered in isolation or as a substitute for an analysis of our results as reported under GAAP. Our use of this term may vary from the use of similarly-titled measures by other issuers due to the potential inconsistencies in the method of calculation and differences due to items subject to interpretation. In addition, not all companies that report revenue growth on a constant currency basis calculate such measure in the same manner as we do and, accordingly, our calculations are not necessarily comparable to similarly-named measures of other companies and may not be appropriate measures for performance relative to other companies.
      The following unaudited table compares revenue and Segment EBITDA by reportable segment:
        Three Months Ended June 30,   Six Months Ended June 30,     2024       2023       2024       2023   (In millions)   % of Revenue     % of Revenue     % of Revenue     % of Revenue Revenue                       Wholesale - North America $ 1,474       $ 1,199       $ 2,974       $ 2,428     Europe   1,639         1,638         3,283         3,193     Specialty   466         443         889         840     Self Service   133         169         270         338     Eliminations   (1 )       (1 )       (2 )       (2 )   Total revenue $ 3,711       $ 3,448       $ 7,414       $ 6,797     Segment EBITDA                       Wholesale - North America $ 256   17.3 %   $ 248   20.6 %   $ 500   16.8 %   $ 500   20.6 % Europe   174   10.6 %     188   11.5 %     317   9.7 %     339   10.6 % Specialty   41   8.9 %     42   9.5 %     68   7.7 %     73   8.7 % Self Service   13   9.9 %     7   4.1 %     29   10.9 %     29   8.7 % Total Segment EBITDA $ 484   13.0 %   $ 485   14.1 %   $ 914   12.3 %   $ 941   13.8 % We have presented Segment EBITDA solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our segment profit and loss and underlying trends in our ongoing operations. We calculate Segment EBITDA as Net Income excluding net income and loss attributable to noncontrolling interest; income and loss from discontinued operations; depreciation; amortization; interest; gains and losses on debt extinguishment; income tax expense; restructuring and transaction related expenses; change in fair value of contingent consideration liabilities; other gains and losses related to acquisitions, equity method investments, or divestitures; equity in losses and earnings of unconsolidated subsidiaries; equity investment fair value adjustments; impairment charges; and direct impacts of the Ukraine/Russia conflict. Our chief operating decision maker, who is our Chief Executive Officer, uses Segment EBITDA as the key measure of our segment profit or loss. We use Segment EBITDA to compare profitability among our segments and evaluate business strategies. This financial measure is included in the metrics used to determine incentive compensation for our senior management. We also consider Segment EBITDA to be a useful financial measure in evaluating our operating performance, as it provides investors, securities analysts and other interested parties with supplemental information regarding the underlying trends in our ongoing operations. Segment EBITDA includes revenue and expenses that are controllable by the segment. Corporate general and administrative expenses are allocated to the segments based on usage, with shared expenses apportioned based on the segment's percentage of consolidated revenue. Refer to the table on the following page for a reconciliation of net income to Segment EBITDA.
      The following unaudited table reconciles Net Income to Segment EBITDA:
        Three Months Ended June 30,   Six Months Ended June 30, (In millions)   2024       2023       2024       2023   Net income $ 186     $ 282     $ 344     $ 552   Less: net income attributable to noncontrolling interest   1       1       1       1   Net income attributable to LKQ stockholders   185       281       343       551   Adjustments:               Depreciation and amortization   100       70       200       135   Interest expense, net of interest income   62       42       123       75   Loss on debt extinguishment   —       —       —       1   Provision for income taxes   82       109       153       203   Equity in earnings of unconsolidated subsidiaries   (2 )     (2 )     —       (5 ) Gains on foreign exchange contracts - acquisition related (1)   —       (23 )     —       (46 ) Equity investment fair value adjustments   2       —       2       1   Restructuring and transaction related expenses   49       8       79       26   Restructuring expenses - cost of goods sold   6       —       14       —   Segment EBITDA $ 484     $ 485     $ 914     $ 941                   Net income attributable to LKQ stockholders as a percentage of revenue   5.0 %     8.1 %     4.6 %     8.1 % Segment EBITDA as a percentage of revenue   13.0 %     14.1 %     12.3 %     13.8 % (1) Related to the Uni-Select acquisition.
      We have presented Segment EBITDA solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our segment profit and loss and underlying trends in our ongoing operations. See paragraph under the previous table (revenue and Segment EBITDA by reportable segment) for details on the calculation of Segment EBITDA.
      Segment EBITDA should not be construed as an alternative to operating income, net income or net cash provided by operating activities, as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report Segment EBITDA information calculate Segment EBITDA in the same manner as we do and, accordingly, our calculation is not necessarily comparable to similarly-named measures of other companies and may not be an appropriate measure for performance relative to other companies.
      The following unaudited table reconciles Net Income and Diluted Earnings per Share to Adjusted Net Income and Adjusted Diluted Earnings per Share, respectively:
        Three Months Ended June 30,   Six Months Ended June 30, (In millions, except per share data)   2024       2023       2024       2023   Net income $ 186     $ 282     $ 344     $ 552   Less: net income attributable to noncontrolling interest   1       1       1       1   Net income attributable to LKQ stockholders   185       281       343       551   Adjustments:               Amortization of acquired intangibles   36       15       73       30   Restructuring and transaction related expenses   49       8       79       26   Restructuring expenses - cost of goods sold   6       —       14       —   Loss on debt extinguishment   —       —       —       1   Pre-acquisition interest expense, net of interest income (1)   —       9       —       12   Gains on foreign exchange contracts - acquisition related (1)   —       (23 )     —       (46 ) Excess tax benefit from stock-based payments   —       —       (1 )     (2 ) Tax effect of adjustments   (15 )     1       (27 )     (2 ) Adjusted net income (2) $ 261     $ 291     $ 481     $ 570                   Weighted average diluted common shares outstanding   265.6       268.2       266.7       268.3                   Diluted earnings per share:               Reported (2) $ 0.70     $ 1.05     $ 1.29     $ 2.06   Adjusted (2) $ 0.98     $ 1.09     $ 1.80     $ 2.12   (1) Related to the Uni-Select acquisition.
      (2) Figures are for continuing operations attributable to LKQ stockholders.
      We have presented Adjusted Net Income and Adjusted Diluted Earnings per Share as we believe these measures are useful for evaluating the core operating performance of our continuing business across reporting periods and in analyzing our historical operating results. We define Adjusted Net Income and Adjusted Diluted Earnings per Share as Net Income and Diluted Earnings per Share adjusted to eliminate the impact of net income and loss attributable to noncontrolling interest, income and loss from discontinued operations, restructuring and transaction related expenses, amortization expense related to all acquired intangible assets, gains and losses on debt extinguishment, changes in fair value of contingent consideration liabilities, other gains and losses related to acquisitions, equity method investments, or divestitures, impairment charges, direct impacts of the Ukraine/Russia conflict, interest and financing costs related to the Uni-Select transaction prior to closing, excess tax benefits and deficiencies from stock-based payments and any tax effect of these adjustments. The tax effect of these adjustments is calculated using the effective tax rate for the applicable period or for certain discrete items the specific tax expense or benefit for the adjustment. Given the variability and volatility of the amount of related transactions in a particular period, management believes that these costs are not core operating expenses and should be adjusted in our calculation of Adjusted Net Income. Our adjustment of the amortization of all acquisition-related intangible assets does not exclude the amortization of other assets, which represents expense that is directly attributable to ongoing operations. Management believes that the adjustment relating to amortization of acquisition-related intangible assets supplements the GAAP information with a measure that can be used to assess the comparability of operating performance. The acquired intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. These financial measures are used by management in its decision making and overall evaluation of our operating performance and are included in the metrics used to determine incentive compensation for our senior management. Adjusted Net Income and Adjusted Diluted Earnings per Share should not be construed as alternatives to Net Income or Diluted Earnings per Share as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report measures similar to Adjusted Net Income and Adjusted Diluted Earnings per Share calculate such measures in the same manner as we do and, accordingly, our calculations are not necessarily comparable to similarly-named measures of other companies and may not be appropriate measures for performance relative to other companies.
      The following unaudited table reconciles Forecasted Net Income and Diluted Earnings per Share to Forecasted Adjusted Net Income and Adjusted Diluted Earnings per Share, respectively:
        Forecasted   Fiscal Year 2024 (In millions, except per share data) Minimum Outlook   Maximum Outlook Net income (1) $ 719     $ 772   Adjustments:       Amortization of acquired intangibles   144       144   Restructuring and transaction related expenses   122       122   Tax effect of adjustments   (56 )     (56 ) Adjusted net income (1) $ 929     $ 982           Weighted average diluted common shares outstanding   265.5       265.5           Diluted earnings per share:       Reported (1) $ 2.71     $ 2.91   Adjusted (1) $ 3.50     $ 3.70   (1) Actuals and outlook figures are for continuing operations attributable to LKQ stockholders.
      We have presented forecasted Adjusted Net Income and forecasted Adjusted Diluted Earnings per Share in our financial outlook. Refer to the discussion of Adjusted Net Income and Adjusted Diluted Earnings per Share for details on the calculation of these non-GAAP financial measures. In the calculation of forecasted Adjusted Net Income and forecasted Adjusted Diluted Earnings per Share, we included estimates of net income, amortization of acquired intangibles for the full fiscal year 2024, restructuring expenses under previously announced plans, and the related tax effect; we included for all other components the amounts incurred through June 30, 2024.
      The following unaudited tables reconciles Net Cash Provided by Operating Activities to Free Cash Flow and Net Income to Adjusted EBITDA:
        Three Months Ended June 30,   Six Months Ended June 30, (In millions) 2024   2023   2024   2023 Net cash provided by operating activities $ 213   $ 480   $ 466   $ 703 Less: purchases of property, plant and equipment   80     66     146     136 Free cash flow $ 133   $ 414   $ 320   $ 567  
        Three Months Ended June 30,   Six Months Ended June 30, (In millions) 2024     2023     2024     2023   Net income $ 186   $ 282     $ 344   $ 552   Less: net income attributable to noncontrolling interest   1     1       1     1   Net income attributable to LKQ stockholders   185     281       343     551   Adjustments:               Depreciation and amortization   100     70       200     135   Interest expense, net of interest income   62     42       123     75   Loss on debt extinguishment   —     —       —     1   Provision for income taxes   82     109       153     203   Gains on foreign exchange contracts - acquisition related (1)   —     (23 )     —     (46 ) Adjusted EBITDA $ 429   $ 479     $ 819   $ 919   (1) Related to the Uni-Select acquisition.
      We have presented free cash flow solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our liquidity. We calculate free cash flow as net cash provided by operating activities, less purchases of property, plant and equipment. We believe free cash flow provides insight into our liquidity and provides useful information to management and investors concerning our cash flow available to meet future debt service obligations and working capital requirements, make strategic acquisitions, pay dividends and repurchase stock. We believe free cash flow is used by investors, securities analysts and other interested parties in evaluating the liquidity of other companies, many of which present free cash flow when reporting their results. This financial measure is included in the metrics used to determine incentive compensation for our senior management. Free cash flow should not be construed as an alternative to net cash provided by operating activities, as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report free cash flow information calculate free cash flow in the same manner as we do and, accordingly, our calculation is not necessarily comparable to similarly-named measures of other companies and may not be an appropriate measure for liquidity relative to other companies.
      We also evaluate our free cash flow by measuring the conversion of Adjusted EBITDA into free cash flow. For the denominator of our conversion ratio, we calculate Adjusted EBITDA as Net Income excluding net income and loss attributable to noncontrolling interest, income and loss from discontinued operations, depreciation, amortization, interest, gains and losses on debt extinguishment, income tax expense, gains and losses on the disposal of businesses, and other unusual income and expense items that affect investing or financing cash flows. We exclude gains and losses on the disposal of businesses as the proceeds are included in investing cash flows, which is outside of free cash flow. Adjusted EBITDA should not be construed as an alternative to operating income, net income or net cash provided by operating activities, as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report Adjusted EBITDA information calculate Adjusted EBITDA in the same manner as we do and, accordingly, our calculation is not necessarily comparable to similarly-named measures of other companies and may not be an appropriate measure for performance relative to other companies.
      The following unaudited table reconciles Forecasted Net Cash Provided by Operating Activities to Forecasted Free Cash Flow:
        Forecasted   Fiscal Year 2024 (In millions) Outlook Net cash provided by operating activities $ 1,200 Less: purchases of property, plant and equipment   350 Free cash flow $ 850 We have presented forecasted free cash flow in our financial outlook. Refer to the paragraph above for details on the calculation of free cash flow.

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