CarParts.com, Inc. Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Property and Equipment, Net

Property and Equipment, Net

12 Months Ended

Dec. 30, 2023

Note 3 – Property and Equipment, Net

The Company’s property and equipment are stated at cost less accumulated depreciation and amortization. Depreciation and amortization expense for fiscal years 2023, 2022 and 2021 was $16,690, $13,607 and $9,895, respectively. The cost and related accumulated depreciation of assets retired or otherwise disposed of are removed from the accounts and the resultant gain or loss is reflected in earnings. Repairs and maintenance are expensed as incurred.

Property and equipment consisted of the following as of December 30, 2023 and December 31, 2022:


	December 30, 2023		December 31, 2022
Machinery and equipment	$	10,150	$	10,660
Computer software (purchased and developed) and equipment		24,523		24,143
Vehicles		180		305
Leasehold improvements		2,751		2,457
Furniture and fixtures		540		513
Construction in process		12,006		10,341
		50,150		48,419
Less accumulated depreciation and amortization		(23,761)		(24,129)
Property and equipment, net	$	26,389	$	24,290

Construction in process primarily relates to the Company’s internally developed software.

Depreciation and amortization of property and equipment is calculated by using the straight-line method for financial reporting purposes, at rates based on the following estimated useful lives:


	Years
Machinery and equipment	2	-	5
Computer software (purchased and developed)	2	-	5
Computer equipment	2	-	5
Vehicles	3	-	5
Leasehold improvements*	3	-	5
Furniture and fixtures	3	-	7

*	The estimated useful life is the lesser of 3-5 years or the lease term, whichever is shorter.