Significant Acounting Policies (Policies)

9 Months Ended

Oct. 08, 2022

The following table summarizes disaggregated revenue from contracts with customers by product group:


	Twelve Weeks Ended				Forty Weeks Ended
	October 8, 2022		October 9, 2021		October 8, 2022		October 9, 2021
Percentage of Sales:
Parts and Batteries	67	%	68	%	66	%	66	%
Accessories and Chemicals	20		19		20		21
Engine Maintenance	12		12		13		12
Other	1		1		1		1
Total	100	%	100	%	100	%	100	%

Inventories

Inventories are stated at the lower of cost or market.

Leases

Substantially all of our leases are for facilities and vehicles. The initial term for facilities is typically five to ten years, with renewal options at five-year intervals, with the exercise of lease renewal options at our sole discretion. Our vehicle and equipment leases are typically three to six years. Our lease agreements do not contain any material residual value guarantees or material restrictive covenants.The current portion of operating lease liabilities is included in Other current liabilities in the accompanying Condensed Consolidated Balance Sheets.Total lease cost is included in Cost of sales and Selling, general and administrative expenses (“SG&A”) in the accompanying Condensed Consolidated Statements of Operations and is recorded net of immaterial sublease income.

Fair Value Measurement

For time-based RSUs, the fair value of each award was determined based on the market price of our stock on the date of grant adjusted for expected dividends during the vesting period, as applicable.

- Definition

Disclosure of inventory accounting policy for inventory classes, including, but not limited to, basis for determining inventory amounts, methods by which amounts are added and removed from inventory classes, loss recognition on impairment of inventories, and situations in which inventories are stated above cost.

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