ADVANCE AUTO PARTS INC Goodwill & Intangibles Disclosure
Goodwill
At January 3, 2026 and December 28, 2024, the carrying amount of goodwill in the accompanying consolidated balance sheets was $600 million and $598 million, respectively. The change in goodwill during 2025 and 2024 was $2 million and $3 million, respectively, and related to foreign currency translation. There were no accumulated losses recognized on goodwill as of January 3, 2026.
Other Intangible Assets, Net
Amortization expense was $12 million, $12 million and $13 million for fiscal 2025, 2024 and 2023, respectively. A summary of the composition of the gross carrying amounts and accumulated amortization of acquired other intangible assets are presented in the following table:
|
January 3, 2026 |
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|
December 28, 2024 |
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Gross |
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Accumulated |
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Net |
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|
Gross |
|
|
Accumulated |
|
|
Net |
|
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Amortized intangible assets: |
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Customer relationships |
$ |
162 |
|
|
$ |
(158 |
) |
|
$ |
4 |
|
|
$ |
157 |
|
|
$ |
(146 |
) |
|
$ |
11 |
|
Non-compete and other |
|
40 |
|
|
|
(39 |
) |
|
|
1 |
|
|
|
40 |
|
|
|
(39 |
) |
|
|
1 |
|
|
|
202 |
|
|
|
(197 |
) |
|
|
5 |
|
|
|
197 |
|
|
|
(185 |
) |
|
|
12 |
|
Indefinite-lived intangible assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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Brands, trademark and trade names |
|
395 |
|
|
|
— |
|
|
|
395 |
|
|
|
394 |
|
|
|
— |
|
|
|
394 |
|
Total intangible assets |
$ |
597 |
|
|
$ |
(197 |
) |
|
$ |
400 |
|
|
$ |
591 |
|
|
$ |
(185 |
) |
|
$ |
406 |
|
Future Amortization Expense
The expected amortization expense for the next five years and thereafter for acquired intangible assets recorded as of January 3, 2026 was as follows:
Year |
Amount |
|
|
2026 |
$ |
2 |
|
2027 |
|
2 |
|
2028 |
|
1 |
|
Thereafter |
|
— |
|
|
$ |
5 |
|
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 13, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2023 | Mar 12, 2024 | |
| 2022 | Feb 28, 2023 | |
| 2021 | Feb 22, 2021 | |
| 2019 | Feb 18, 2020 | |
| 2018 | Feb 19, 2019 | |
| 2017 | Feb 21, 2018 | |
| 2016 | Feb 28, 2017 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.