$AAP

ADVANCE AUTO PARTS INC

CIK:0001158449|SEC Filings

Condensed Consolidated Statements of Operations - USD ($)
shares in Millions, $ in Millions

3 Months Ended

6 Months Ended

Jul. 18, 2026

Jul. 12, 2025

Jul. 18, 2026

Jul. 12, 2025

Income Statement [Abstract]

Net sales

$ 2,000

$ 2,010

$ 4,614

$ 4,593

Cost of sales

1,077

1,136

2,511

2,609

Gross Profit

923

874

2,103

1,984

Selling, general and administrative expenses, exclusive of restructuring expenses

812

823

1,892

1,945

Restructuring and related expenses

148

Selling, general and administrative expenses

822

852

1,933

2,093

Operating income (loss)

101

170

(109)

Other, net:

Interest expense

(48)

(19)

(113)

(46)

Other income, net

Total other, net

(26)

(1)

(60)

(1)

Income (loss) before income tax expense, Total

110

(110)

Income tax expense (benefit)

(149)

Net income

$ 55

$ 15

$ 80

$ 39

Basic earnings per common share

$ 0.91

$ 0.25

$ 1.33

$ 0.65

Basic weighted-average common shares outstanding

60.3

59.9

60.2

59.9

Diluted earnings per common share

$ 0.9

$ 0.25

$ 1.31

$ 0.65

Diluted weighted-average common shares outstanding

^[1]

61.0

60.5

60.9

60.3

[1]

For the twelve weeks ended July 18, 2026 and July 12, 2025, 0.5 million and 0.9 million, respectively, of share-based awards were excluded from the diluted calculation as their inclusion would have been anti-dilutive. For the twenty-eight weeks ended July 18, 2026 and July 12, 2025, 0.5 million and 0.9 million respectively, of share-based awards were excluded from the diluted calculation as their inclusion would have been anti-dilutive.

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Millions	6 Months Ended
	Jul. 18, 2026	Jul. 12, 2025
Cash flows from operating activities:
Net income	$ 80	$ 39
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	130	146
Share-based compensation	21	20
Loss on sale and impairment of long-lived assets	5	11
Expected future credit losses, net	7	16
Provision for deferred income taxes	29	(21)
Other, net	21	3
Net change in:
Receivables, net	(17)	38
Inventories, net	(206)	(73)
Operating lease right-of-use assets	4	62
Other assets	6	(65)
Accounts payable	155	(90)
Accrued expenses	31	(83)
Operating lease liabilities	(31)	(109)
Other liabilities	17	0
Net cash provided by (used in) operating activities	252	(106)
Cash flows from investing activities:
Purchases of property and equipment	(132)	(95)
Proceeds from sales of property and equipment	1	20
Other, net	(2)	0
Net cash used in investing activities of continuing operations	(133)	(75)
Net cash used in investing activities of discontinued operations	(55)	0
Net cash used in investing activities	(188)	(75)
Cash flows from financing activities:
Dividends paid	(30)	(30)
Repayment of long-term debt	(29)	0
Other, net	(7)	(2)
Net cash used in financing activities	(66)	(32)
Effect of exchange rate changes on cash	(1)	1
Net decrease in cash and cash equivalents	(3)	(212)
Cash and cash equivalents, beginning of period	3,123	1,869
Cash and cash equivalents, end of period	3,120	1,657
Non-cash transactions:
Accrued purchases of property and equipment	21	15
Accrued dividends	16	16
Supplemental cash flow information:
Interest paid	$ 100	$ 40

Condensed Consolidated Balance Sheets - USD ($) $ in Millions	Jul. 18, 2026	Jan. 03, 2026
Current assets:
Cash and cash equivalents	$ 3,120	$ 3,123
Receivables, net	390	380
Inventories, net	3,844	3,646
Other current assets	119	141
Total current assets	7,473	7,290
Property and equipment, net	1,276	1,269
Operating lease right-of-use assets	2,149	2,157
Goodwill	599	600
Other intangible assets, net	398	400
Other assets	124	110
Total assets	12,019	11,826
Current liabilities:
Accounts payable	3,126	2,977
Accrued expenses	733	756
Other current liabilities	417	443
Total current liabilities	4,276	4,176
Long-term debt	3,387	3,412
Operating lease liabilities	1,824	1,812
Deferred income taxes	171	142
Other long-term liabilities	104	86
Total liabilities	9,762	9,628
Commitments and contingencies (Note 9)
Stockholders' equity:
Preferred stock, nonvoting, $0.0001 par value, 10 million shares authorized; no shares issued or outstanding	0	0
Common stock, voting, and additional paid-in capital, $0.0001 par value, 200 million shares authorized; 79 million shares issued and 60 million outstanding at July 18, 2026 and 78 million shares issued and 60 million outstanding at January 3, 2026	1,055	1,033
Treasury stock, at cost	(2,953)	(2,944)
Accumulated other comprehensive loss	(40)	(37)
Retained earnings	4,195	4,146
Total stockholders' equity	2,257	2,198
Total liabilities and stockholders' equity	$ 12,019	$ 11,826