CarParts.com, Inc. Quarterly report pursuant to Section 13 or 15(d)

Quarterly report pursuant to Section 13 or 15(d)

Property and Equipment, Net

Property and Equipment, Net

3 Months Ended

Mar. 30, 2013

Property and Equipment, Net [Abstract]

Note 4 – Property and Equipment, Net

The Company’s fixed assets are stated at cost less accumulated depreciation, amortization and impairment. Depreciation and amortization expense are provided for in amounts sufficient to relate the cost of depreciable and amortizable assets to operations over their estimated service lives. Depreciation and amortization expense for the thirteen weeks ended March 30, 2013 and March 31, 2012 was $3.6 million and $3.7 million, 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.

Property and equipment consisted of the following at March 30, 2013 and December 29, 2012 (in thousands):


	March 30, 2013			December 29, 2012
Land	$	630		$	630
Building		10,680			10,680
Machinery and equipment		13,269			13,249
Computer software (purchased and developed) and equipment		49,111			46,884
Vehicles		261			261
Leasehold improvements		2,370			2,364
Furniture and fixtures		1,134			1,131
Construction in process		3,004			3,043

		80,459			78,242
Less accumulated depreciation, amortization and impairment		(53,336	)		(49,683	)

Property and equipment, net	$	27,123		$	28,559

Construction in process primarily relates to the Company’s internally developed software (refer to caption “Website and Software Development Costs” in “Note 1 – Summary of Significant Accounting Policies and Nature of Operations”). Certain of the Company’s net property and equipment were located in the Philippines as of March 30, 2013 and December 29, 2012, in the amount of $0.9 million and $1.0 million, respectively.

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


		Years
Building		19
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.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

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