| Summary of significant segment expenses that are included in reported segment profit or loss |
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 three and six months ended June 30, 2026 and 2025 (in thousands): | | | | | | | | | | | | | | | | | For the Three Months Ended | | For the Six Months Ended | | | | June 30, | | June 30, | | | | 2026 | | 2025 | | 2026 | | 2025 | Automotive aftermarket parts segment: | | | | | | | | | | | | | Sales | | $ | 4,892,013 | | $ | 4,525,058 | | $ | 9,452,552 | | $ | 8,661,982 | Cost of goods sold, including warehouse and distribution expenses | | | 2,375,273 | | | 2,198,520 | | | 4,588,601 | | | 4,213,959 | Gross profit | | | 2,516,740 | | | 2,326,538 | | | 4,863,951 | | | 4,448,023 | Less: | Team Member compensation expense (1) | | | 954,573 | | | 895,688 | | | 1,882,465 | | | 1,759,232 | | Rent expense (2) | | | 122,390 | | | 115,090 | | | 242,246 | | | 228,250 | | Depreciation and amortization expense | | | 111,148 | | | 101,492 | | | 220,190 | | | 200,502 | | Advertising expense | | | 27,753 | | | 24,894 | | | 50,032 | | | 44,828 | | Other segment items (3) | | | 306,930 | | | 270,582 | | | 632,238 | | | 554,504 | | Interest expense | | | 69,871 | | | 57,337 | | | 132,616 | | | 114,901 | | Provision for income taxes | | | 209,011 | | | 192,860 | | | 384,919 | | | 338,726 | Consolidated net income | | $ | 715,064 | | $ | 668,595 | | $ | 1,319,245 | | $ | 1,207,080 |
(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. |
|