On November 13, 2024, the Company’s Board of Directors approved a restructuring and asset optimization plan (“2024 Restructuring Plan”) designed to improve the Company’s profitability and growth potential and streamline its operations. This plan includes the closure of approximately 500 stores, approximately 200 independent locations and four distribution centers by mid-2025, as well as headcount reductions. The Company completed the closure of all of these locations during the first quarter of 2025.

Expenses associated with the 2024 Restructuring Plan included: 1) noncash asset impairment and accelerated amortization and depreciation of operating lease Right-of-Use (“ROU”) assets and property and equipment, 2) personnel expenses related to severance and transition expenses, which were offered to certain employees who would provide services through key dates to ensure completion of closure activities and 3) other location closure-related activity, including nonrecurring services rendered by third-party vendors assisting with the turnaround initiatives and other related expenses, including incremental revisions to receivable collectability due to termination of contracts with independents associated with the 2024 Restructuring Plan.

In November 2023, the Company announced a strategic and operational plan with anticipated savings of $150 million of which $50 million would be reinvested into frontline team members. In addition to a reduction in workforce, this plan streamlines the Company’s supply chain by configuring a multi-echelon supply chain by leveraging current asset and operating fewer, more productive distribution centers that focus on replenishment and move more parts closer to the customer. In achieving this plan, the Company is in process of converting certain distribution centers and stores into market hubs. In addition to providing replenishment to near-by stores, market hubs support retail operations. In addition to the distribution network optimization costs, other restructuring expenses included certain other items as further detailed in the table below.

The Company has recorded all restructuring and related expenses as a component of selling, general and administrative expenses in the condensed consolidated statement of operations, with the exception of inventory related expenses that are recorded as a component of cost of sales on the condensed consolidated statement of operations. No inventory related expenses were incurred during the first quarter of fiscal 2025 related to restructuring and related activities. No restructuring and related activities were incurred during the first quarter of fiscal 2024.


	Sixteen Weeks Ended
2024 Restructuring Plan Expenses:	April 19, 2025


Selling, general and administrative expenses:
Impairment and write-down of long-lived assets	$	41
Severance and other personnel expenses	15
Other location closure related expenses (1)	49

2024 Restructuring Plan Expenses	$	105

Other Restructuring Plan Expenses:
Selling, general and administrative expenses:
Distribution network optimization	$	3
Impairment and write-down of long-lived assets	4
Worldpac post transaction-related expenses	3
Other restructuring expenses (2)	3
Other Restructuring Plan Expenses	$	13

(1) Other location closure related activity includes $30 million of nonrecurring services rendered by third-party vendors assisting with the 2024 Restructuring Plan, $7 million related to incremental reserves on loan guarantees and the remaining other related expenses are associated with closures, including the transfer of assets.

The following table shows the change in the restructuring liability in the period, which excludes operating lease liabilities and associated expenses. The restructuring liabilities are classified within accounts payable, accrued liabilities and other current liabilities in the condensed consolidated balance sheets.


	Professional service fees		Severance and other personnel expenses
Balance at December 28, 2024	$	23	$	14
Restructuring expenses during the period	30		19
Cash payments	(50)		(30)
Balance at April 19, 2025	$	3	$	3