ADVANCE AUTO PARTS INC Segments Disclosure
The Company has one operating segment and one reportable segment, effective during the first quarter of fiscal year 2025, resulting from the stabilization of the Company’s new organizational structure due to the significant restructuring activities announced in fiscal year 2024 as further described in Note 3. Restructuring, included herein. Following this restructuring, the Company no longer has two operating segments, which were previously aggregated into a single reportable segment. The Company conducts its operations principally in the geographical areas of the U.S. and Canada through its Advance Auto Parts and Carquest trade brands. The products sold by the Company, across all geographic areas, have similar economic characteristics, are sourced from the Company’s suppliers in a similar manner, and are available for sale to all of the Company’s customers through the Company’s stores and self-service e-commerce sites. All of the Company’s stores have similar characteristics, including the nature of the products and services, the type and class of customers, and the methods used to distribute products and provide service to its customers. Due to these reasons, the Company has one operating segment, referred to as Advance Auto Parts/Carquest.
The Company’s chief operating decision maker (“CODM”) is the Chief Executive Officer, who regularly reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance for the Company’s single reportable segment. The CODM primarily focuses on net income to evaluate its reportable segment. The CODM also uses net income for evaluating pricing strategy and to assess the performance for determining the compensation of certain employees. Significant segment expenses reviewed, which represent the difference between segment revenue and segment net income, consisted of the following:
|
|
Year ended |
|
|||||||||
|
|
January 3, 2026 |
|
|
December 28, 2024 |
|
|
December 30, 2023 |
|
|||
Net sales |
|
$ |
8,601 |
|
|
$ |
9,094 |
|
|
$ |
9,209 |
|
Less: |
|
|
|
|
|
|
|
|
|
|||
Cost of sales |
|
|
4,868 |
|
|
|
5,685 |
|
|
|
5,349 |
|
Selling, general and administrative expenses(1) |
|
|
3,372 |
|
|
|
3,592 |
|
|
|
3,592 |
|
Restructuring and related expenses |
|
|
204 |
|
|
|
309 |
|
|
|
16 |
|
Depreciation and amortization expense(2) |
|
|
200 |
|
|
|
221 |
|
|
|
213 |
|
Interest expense |
|
|
139 |
|
|
|
81 |
|
|
|
88 |
|
Other segment items(3) |
|
|
(91 |
) |
|
|
(26 |
) |
|
|
(2 |
) |
Income tax benefit |
|
|
(159 |
) |
|
|
(181 |
) |
|
|
(17 |
) |
Net income (loss) from continuing operations |
|
$ |
68 |
|
|
$ |
(587 |
) |
|
$ |
(30 |
) |
(1) Selling, general and administrative expenses, excludes restructuring and related expenses and depreciation and amortization.
(2)Excluded $49 million and $23 million of depreciation and amortization expense included within cost of sales and restructuring, respectively, for fiscal 2025, $56 million and $15 million , respectively, for fiscal 2024. Depreciation and amortization expense included within cost of sales for fiscal 2023 was $56 million. There was no depreciation or amortization included within restructuring for fiscal 2023.
(3) Other segment items relates to interest income, loss on extinguishment of debt, and income recognized from the transition services (“TSA Services”) agreement with Worldpac that commenced in the fourth quarter of fiscal 2024, included in total other, net, in the accompanying consolidated statements of operations.
The following table presents the Company’s net sales disaggregated by geographical area:
|
|
Year Ended |
|
|||||||||
|
|
January 3, 2026 |
|
|
December 28, 2024 |
|
|
December 30, 2023 |
|
|||
United States |
|
$ |
8,309 |
|
|
$ |
8,800 |
|
|
$ |
8,914 |
|
Canada |
|
|
292 |
|
|
|
294 |
|
|
|
295 |
|
Total |
|
$ |
8,601 |
|
|
$ |
9,094 |
|
|
$ |
9,209 |
|
No asset information has been provided for the reportable segment as the CODM does not regularly review asset information by reportable segment.
There were no major customers individually accounting for 10% or more of consolidated net revenues.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2026 | Feb 13, 2026 | Showing above |
| 2024 | Feb 26, 2025 | |
| 2016 | Feb 28, 2017 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.