SEGMENT REPORTING

12 Months Ended

Dec. 31, 2024

Segment Reporting

Segment reporting

NOTE 3 – SEGMENT REPORTING

The Company conducts its operations in the U.S., Canada, and Mexico, collectively this represents its single operating segment, referred to as its automotive aftermarket parts segment, which is its only reportable segment.  There have been no changes in the determination of segmentation or the measurements used to determine reported segment net income during the year ended December 31, 2024.  The measure of segment assets is reported as “Total assets” on the accompanying Consolidated Balance Sheets as of December 31, 2024 and 2023.  At December 31, 2024 and 2023, the Company’s consolidated long-lived assets were located primarily in the United States and consolidated revenue was primarily generated within the United States for the years ending December 31, 2024, 2023 and 2022, with immaterial assets and revenues associated with international operations.  

The table below identifies the Company’s significant segment expenses regularly provided to the chief operating decision maker that are included in reported segment profit or loss, which is consolidated net income, for the years ended December 31, 2024, 2023, and 2022 (in thousands):

		For the Year Ended
		December 31,
		2024		2023		2022
Automotive aftermarket parts segment:
Sales		$	16,708,479	$	15,812,250	$	14,409,860
Cost of goods sold, including warehouse and distribution expenses			8,153,990		7,707,447		7,028,154
Gross profit			8,554,489		8,104,803		7,381,706
Less:	Team Member compensation expense (1)		3,334,574		3,139,448		2,830,180
	Rent expense (2)		429,686		402,572		375,116
	Depreciation and amortization expense		372,878		333,678		291,938
	Advertising expense		90,744		85,706		81,542
	Other segment items (3)		1,058,995		936,981		846,555
	Interest expense		222,548		201,668		157,720
	Provision for income taxes		658,384		658,169		626,005
Consolidated net income		$	2,386,680	$	2,346,581	$	2,172,650

⁽¹⁾ Team Member compensation expense derived from selling, general and administrative expenses included in Segment net income includes payroll expense, benefits and withholdings expense, share-based compensation expense, and nonqualified deferred compensation expense.

⁽²⁾ Rent expense derived from selling, general and administrative expenses included in Segment net income includes rent and common area maintenance expense.

⁽³⁾ Other segment items included in Segment net income includes vehicle expenses, utilities expense, real estate taxes and insurance expense, bad debt and banking fees expense, interest income, and other operating expenses.