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

Jan. 01, 2022

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 2021, 2020 and 2019 was $9,895, $7,657 and $6,252, 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 January 1, 2022 and January 2, 2021:


	January 1, 2022		January 2, 2021
Machinery and equipment		10,525		11,547
Computer software (purchased and developed) and equipment		14,785		23,225
Vehicles		251		190
Leasehold improvements		1,772		1,515
Furniture and fixtures		395		297
Construction in process		11,170		5,780
		38,898		42,554
Less accumulated depreciation and amortization		(18,162)		(27,812)
Property and equipment, net	$	20,736	$	14,742

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	-	3
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.

Refer to “Note 8 - Commitments and Contingencies” for additional lease information.