Advance Auto Parts (AAP): what its 10-K says it depends on

Customers

Professional installers (commercial customers)

earns from · approximately 50% of sales

The Company’s professional sales represented approximately 50% of sales in each of fiscal years 2025, 2024 and 2023.Business (Item 1)

Carquest independently-owned stores

earns from · 809 independently-owned Carquest stores

The Company also serves 809 independently-owned Carquest stores with shipments directly from distribution centers.Business (Item 1)

Other companies

Worldpac

$31 millionnamed as a risk

In January 2026, the Company and Worldpac agreed to a final net working capital adjustment that was $31 million in excess of the Company's original preliminary estimate of working capital, as defined in the agreement.Risk factors (Item 1A)

ABL Facility

depends onnamed as a risk

It is possible that one or more of the banks that provide the Company with financing under its asset-based revolving credit facility (the "ABL Facility") may fail to honor the terms of the Company’s ABL Facility or be financially unable to provide the unused credit as a result of significant deterioration in such bank’s financial condition.Risk factors (Item 1A)

Also named by ASO, CTOS, FND, KGS, SUNB, URI

Vehicle manufacturer repair information access

depends onnamed as a risk

the refusal of vehicle manufacturers to make available diagnostic, repair and maintenance information to the automotive aftermarket industry that the Company’s professional and DIY customers require to diagnose, repair and maintain their vehicles, because this may force consumers to have a majority of diagnostic work, repairs and maintenance performed by the vehicle manufacturers’ dealer networks.Risk factors (Item 1A)

Competitors

AutoZone, Inc.

competes with

The Company’s primary competitors are (i) both national and regional chains of automotive parts stores, including AutoZone, Inc., NAPA, O’Reilly Automotive, Inc. and Auto Plus (formerly Uni-Select USA, Inc.), (ii) internet-based retailers, (iii) discount stores and mass merchandisers that carry automotive products, (iv) wholesalers or jobbers stores, including those associated with national parts distributors or associations, (v) independently-owned stores and (vi) automobile dealers that supply parts.Business (Item 1)

Also named by GPC, ORLY

NAPA

competes with

The Company’s primary competitors are (i) both national and regional chains of automotive parts stores, including AutoZone, Inc., NAPA, O’Reilly Automotive, Inc. and Auto Plus (formerly Uni-Select USA, Inc.), (ii) internet-based retailers, (iii) discount stores and mass merchandisers that carry automotive products, (iv) wholesalers or jobbers stores, including those associated with national parts distributors or associations, (v) independently-owned stores and (vi) automobile dealers that supply parts.Business (Item 1)

Also named by ORLY

O’Reilly Automotive, Inc.

competes with

The Company’s primary competitors are (i) both national and regional chains of automotive parts stores, including AutoZone, Inc., NAPA, O’Reilly Automotive, Inc. and Auto Plus (formerly Uni-Select USA, Inc.), (ii) internet-based retailers, (iii) discount stores and mass merchandisers that carry automotive products, (iv) wholesalers or jobbers stores, including those associated with national parts distributors or associations, (v) independently-owned stores and (vi) automobile dealers that supply parts.Business (Item 1)

Auto Plus

competes with

The Company’s primary competitors are (i) both national and regional chains of automotive parts stores, including AutoZone, Inc., NAPA, O’Reilly Automotive, Inc. and Auto Plus (formerly Uni-Select USA, Inc.), (ii) internet-based retailers, (iii) discount stores and mass merchandisers that carry automotive products, (iv) wholesalers or jobbers stores, including those associated with national parts distributors or associations, (v) independently-owned stores and (vi) automobile dealers that supply parts.Business (Item 1)

Places

Canada

operates in · 157 stores in Canada

The Company’s 239 Carquest stores as of January 3, 2026, including 157 stores in Canada, are generally located in freestanding buildings with a primary focus on professional customers, but also serve DIY customers.Business (Item 1)

Also named by AJG, ALL, AMRC, AOS, ARE, BBY, BF/B, BR and 97 more

China

depends onnamed as a risk

During fiscal 2025, new global trade tariffs were imposed on imports to the U.S., including tariffs on imports from various countries from which the Company directly or indirectly imports and/or sources merchandise, including Canada, China and Mexico, among others.Risk factors (Item 1A)

Also named by A, AA, AAOI, AAPL, AB, ADI, AEHR, ALAB and 261 more

Mexico

depends onnamed as a risk

During fiscal 2025, new global trade tariffs were imposed on imports to the U.S., including tariffs on imports from various countries from which the Company directly or indirectly imports and/or sources merchandise, including Canada, China and Mexico, among others.Risk factors (Item 1A)

Also named by AME, AMRC, ANET, AOS, ARES, AYI, AZO, BBY and 83 more

Hazards

Weather

named as a risk

While unusually heavy precipitation tends to soften sales as elective maintenance is deferred during such periods, extremely hot or cold weather tends to cause automotive parts to fail at an accelerated rate which can lead to enhanced sales.Business (Item 1)

Also named by CLX, CPRT, DASH, DECK, ENB, GVA, LII, LYV and 4 more

Asbestos

named as a risk

For instance, the Company is subject to a potential securities class action regarding past public disclosures (See Item 3. Legal Proceedings, of this Annual Report) and to numerous lawsuits alleging injury as a result of exposure to asbestos-containing products (see Note 14. Commitments and Contingencies, of the Notes to the Consolidated Financial Statements of this Annual Report).Risk factors (Item 1A)

Also named by APG, BLDR, CARR, JCI, NVT, PLD, RPM, TRV

Commodities and inputs

SOFR

exposed to its price · approximately $31 millionnamed as a risk

A hypothetical 100 basis points change in interest rates would have an annualized impact of approximately $31 million based on our balance of cash and cash equivalents as of January 3, 2026.Market risk (Item 7A)

Also named by AIOT, APG, APH, ARES, AXON, BGC, BR, CCC and 82 more

Crude oil, gasoline and diesel fuel

exposed to its pricenamed as a risk

Terrorist attacks, warfare, geopolitical instability, or uncertainty or insurrection involving any oil producing country could result in an abrupt increase in the price of crude oil, gasoline and diesel fuel.Risk factors (Item 1A)

Lead-acid batteries and used motor oil recycling

subject to

The Company is subject to various federal, state and local laws and governmental regulations relating to the operation of the business, including those governing collection, transportation and recycling of automotive lead-acid batteries, used motor oil and other recyclable items and the ownership and operation of real property.Business (Item 1)

Regulators

U.S. Environmental Protection Agency

subject to

From time to time, the Company receives notices from the U.S. Environmental Protection Agency and state environmental authorities indicating that there may be contamination on properties that the Company owns, leases or operates or may have owned, leased or operated in the past or on adjacent properties for which the Company may be responsible.Business (Item 1)

Also named by AAON, ALSN, AMRC, APA, APD, APG, AROC, AYI and 78 more

Laws and programs

2024 Restructuring Plan

approximately $30 million to $40 millionnamed as a risk

However, the Company expects to incur approximately $30 million to $40 million of additional restructuring charges through fiscal 2026, primarily related to costs associated with closed stores for the termination and exit of certain leases.Risk factors (Item 1A)

California Consumer Privacy Act

subject tonamed as a risk

The cost of complying with stricter and more numerous, complex state data privacy laws (such as the California Consumer Privacy Act), data collection and information security laws and standards is also significant to the Company.Risk factors (Item 1A)

Also named by AIOT, AKAM, ALL, APP, AYI, BAC, BBSI, BBW and 69 more

U.S. tariffs on imports

subject tonamed as a risk

During fiscal 2025, new global trade tariffs were imposed on imports to the U.S., including tariffs on imports from various countries from which the Company directly or indirectly imports and/or sources merchandise, including Canada, China and Mexico, among others.Risk factors (Item 1A)

Also named by ABT, ALLY, ATR, AZO, BBW, BWA, CMG, DG and 19 more

Vendor payment programs (supply chain financing)

depends onnamed as a risk

In addition, it could reduce the attractiveness of certain vendor payment programs whereby third-party institutions, also referred to as paying agents, finance arrangements to the Company’s vendors based on the Company’s credit rating, which could result in increased working capital requirements.Risk factors (Item 1A)

Technology

Electric vehicles

named as a risk

technological advances, including the rate of adoption of electric vehicles, hybrid vehicles, ride sharing services, alternative modes of transportation, autonomously driven vehicles and future legislation related thereto, and the increase in the quality of vehicles manufactured, because vehicles that need less frequent maintenance or have lower part failure rates will require less frequent repairs using aftermarket parts and, in the case of electric and hybrid vehicles, do not require or require less frequent oil changes; andRisk factors (Item 1A)

Also named by ALB, AZO, BWA, GPC, LKQ, ON, PRM, SUN and 1 more