| Schedule of significant expenses provided to the CODM |
| | | | | | | | | | | | | | | Twelve Weeks Ended | | Thirty-Six Weeks Ended | | | May 9, | | May 10, | | May 9, | | May 10, | (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 | | | | | | | | | | | | | | Auto Parts Segment | | | | | | | | | | | | | Net sales | | $ | 4,840,950 | | $ | 4,464,339 | | $ | 13,743,677 | | $ | 12,695,991 | Cost of sales, including warehouse and delivery expenses | | | 2,316,376 | | | 2,110,816 | | | 6,616,431 | | | 5,946,010 | Gross profit | | | 2,524,574 | | | 2,353,523 | | | 7,127,246 | | | 6,749,981 | Less: | | | | | | | | | | | | | Compensation expense(1) | | | 972,875 | | | 899,440 | | | 2,858,295 | | | 2,633,277 | Rent expense(2) | | | 122,541 | | | 111,765 | | | 356,884 | | | 327,701 | Depreciation & amortization | | | 138,216 | | | 127,031 | | | 407,274 | | | 370,948 | Advertising expense | | | 25,275 | | | 24,708 | | | 71,079 | | | 74,658 | Other segment expenses(3) | | | 341,911 | | | 324,405 | | | 1,027,333 | | | 929,307 | Interest expense, net | | | 110,490 | | | 111,285 | | | 323,929 | | | 327,736 | Income tax expense | | | 171,775 | | | 146,449 | | | 441,278 | | | 425,057 | Consolidated net income | | $ | 641,491 | | $ | 608,440 | | $ | 1,641,174 | | $ | 1,661,297 |
(1) Compensation expense includes operating, selling, general and administrative expenses for payroll expense, benefits, related taxes, share-based compensation and other employee costs. (2) Rent expense includes rent and variable operating lease components, related to insurance and common area maintenance included in selling, general and administrative expenses. Rent expense related to supply chain is included in cost of sales, including warehouse and delivery expenses. (3) Other segment items include vehicle expense, utilities expense, real estate taxes and insurance expense, service charges and other operating expenses.
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