CarParts.com (PRTS) 10-Q 12 Aug 15 2015 Q2 Quarterly report Financial data

Document and Entity Information

Document and Entity Information - shares	6 Months Ended
	Jul. 04, 2015	Aug. 05, 2015
Document And Entity Information [Abstract]
Document Type	10-Q
Document Period End Date	Jul. 4, 2015
Amendment Flag	false
Document Fiscal Year Focus	2,015
Document Fiscal Period Focus	Q2
Trading Symbol	PRTS
Entity Registrant Name	U.S. Auto Parts Network, Inc.
Entity Central Index Key	1,378,950
Current Fiscal Year End Date	--01-02
Entity Filer Category	Non-accelerated Filer
Entity Common Stock, Shares Outstanding		34,001,972

Consolidated Balance Sheets (Un

Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Current assets:
Cash and cash equivalents	$ 6,608	$ 7,653
Short-term investments	59	62
Accounts receivable, net of allowances of $39 and $41 at July 4, 2015 and January 3, 2015, respectively	3,118	3,804
Inventory	45,220	48,362
Other current assets	2,929	2,669
Total current assets	57,934	62,550
Property and equipment, net	17,044	16,966
Intangible assets, net	1,502	1,707
Other non-current assets	1,635	1,684
Total assets	78,115	82,907
Current liabilities:
Accounts payable	23,854	25,362
Accrued expenses	7,541	7,747
Revolving loan payable	7,986	11,022
Current portion of capital leases payable	339	269
Other current liabilities	4,458	3,505
Total current liabilities	44,178	47,905
Capital leases payable, net of current portion	9,437	9,270
Deferred income taxes	1,163	1,618
Other non-current liabilities	1,673	1,891
Total liabilities	$ 56,451	$ 60,684
Commitments and contingencies
Stockholders’ equity:
Series A convertible preferred stock, $0.001 par value; $1.45 per share liquidation value or aggregate of $6,017; 4,150 shares authorized; 4,150 shares issued and outstanding at July 4, 2015 and January 3, 2015	$ 4	$ 4
Common stock, $0.001 par value; 100,000 shares authorized; 34,001 and 33,624 shares issued and outstanding at July 4, 2015 and January 3, 2015	34	33
Additional paid-in capital	175,274	174,369
Accumulated other comprehensive income	352	360
Accumulated deficit	(156,443)	(155,489)
Total stockholders’ equity	19,221	19,277
Noncontrolling interest	2,443	2,946
Total equity	21,664	22,223
Total liabilities and stockholders’ equity	$ 78,115	$ 82,907

Consolidated Balance Sheets (U3

Consolidated Balance Sheets (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Accounts receivable, allowances	$ 39	$ 41
Common stock, par value (in dollars per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	100,000,000	100,000,000
Common stock, shares issued (in shares)	34,001,000	33,624,000
Common stock, shares outstanding (in shares)	34,001,000	33,624,000
Series A Convertible Preferred Stock
Series A convertible preferred stock, par value (in dollars per share)	$ 0.001	$ 0.001
Share liquidation value (in dollars per share)	$ 1.45	$ 1.45
Share aggregate value	$ 6,017	$ 6,017
Series A convertible preferred stock, shares authorized (in shares)	4,150,000	4,150,000
Series A convertible preferred stock, shares issued (in shares)	4,150,000	4,150,000
Series A convertible preferred stock, shares outstanding (in shares)	4,150,000	4,150,000

Consolidated Statements of Oper

Consolidated Statements of Operations and Comprehensive Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands		3 Months Ended		6 Months Ended
		Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Statement [Abstract]
Net sales		$ 76,462	$ 76,947	$ 152,850	$ 144,975
Cost of sales	[1]	55,594	56,527	110,504	103,854
Gross profit		20,868	20,420	42,346	41,121
Operating expenses:
Marketing		11,148	10,963	22,000	21,078
General and administrative		4,484	4,623	8,665	8,770
Fulfillment		4,978	5,383	10,038	10,095
Technology		1,250	1,264	2,538	2,412
Amortization of intangible assets		115	126	230	210
Total operating expenses	[2]	21,975	22,359	43,471	42,565
Loss from operations		(1,107)	(1,939)	(1,125)	(1,444)
Other income (expense):
Other income, net		10	18	33	15
Interest expense		(272)	(238)	(645)	(497)
Total other expense, net		(262)	(220)	(612)	(482)
Loss before income taxes		(1,369)	(2,159)	(1,737)	(1,926)
Income tax (benefit) provision		(347)	21	(399)	53
Net loss including noncontrolling interests		(1,022)	(2,180)	(1,338)	(1,979)
Net loss attributable to noncontrolling interests		(247)	0	(503)	0
Net loss attributable to U.S. Auto Parts		(775)	(2,180)	(835)	(1,979)
Other comprehensive loss attributable to U.S. Auto Parts, net of tax:
Foreign currency translation adjustments		(12)	(12)	(22)	(4)
Net unrecognized losses on derivative instruments		0	(22)	0	(22)
Total other comprehensive loss attributable to U.S. Auto Parts		(12)	(34)	(22)	(26)
Comprehensive loss attributable to U.S. Auto Parts		$ (787)	$ (2,214)	$ (857)	$ (2,005)
Basic and diluted net loss per share (in dollars per share)		$ (0.02)	$ (0.07)	$ (0.03)	$ (0.06)
Shares used in computation of basic and diluted net loss per share (in shares)		33,963	33,460	33,842	33,422
[1]	Excludes depreciation and amortization expense which is included in marketing, general and administrative and fulfillment expense.
[2]	Operating costs for AutoMD primarily consist of depreciation and amortization on fixed assets and personnel costs. Indirect costs are not allocated to AutoMD.

Consolidated Statements of Cash

Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Operating activities
Net loss including noncontrolling interests	$ (1,338)	$ (1,979)
Adjustments to reconcile net loss to net cash provided by (used in) operating activities:
Depreciation and amortization expense	3,756	4,620
Amortization of intangible assets	230	210
Deferred income taxes	(452)	51
Share-based compensation expense	1,106	1,005
Amortization of deferred financing costs	41	41
(Gain) loss from disposition of assets	(13)	2
Changes in operating assets and liabilities:
Accounts receivable	686	1,298
Inventory	3,142	1,808
Other current assets	(142)	161
Other non-current assets	40	79
Accounts payable and accrued expenses	(1,258)	3,775
Other current liabilities	798	498
Other non-current liabilities	(110)	(161)
Net cash provided by operating activities	6,486	11,408
Investing activities
Additions to property and equipment	(3,832)	(3,036)
Proceeds from sale of property and equipment	13	6
Cash paid for intangible assets	(25)	0
Purchases of marketable securities and investments	0	(745)
Net cash used in investing activities	(3,844)	(3,775)
Financing activities
Borrowings from revolving loan payable	7,014	2,109
Payments made on revolving loan payable	(10,050)	(8,883)
Proceeds from stock options	40	218
Payments on capital leases	(131)	(128)
Statutory tax withholding payment for share-based compensation	(438)	0
Payment of liabilities related to financing activities	(100)	(100)
Net cash used in financing activities	(3,665)	(6,784)
Effect of exchange rate changes on cash	(22)	8
Net change in cash and cash equivalents	(1,045)	857
Cash and cash equivalents, beginning of period	7,653	818
Cash and cash equivalents, end of period	6,608	1,675
Supplemental disclosure of non-cash investing and financing activities:
Accrued asset purchases	791	518
Property acquired under capital lease	368	0
Supplemental disclosure of cash flow information:
Cash paid during the period for income taxes	58	20
Cash paid during the period for interest	$ 590	$ 468

Basis of Presentation and Descr

Basis of Presentation and Description of Company	6 Months Ended
	Jul. 04, 2015
Accounting Policies [Abstract]
Basis of Presentation and Description of Company	Basis of Presentation and Description of Company U.S. Auto Parts Network, Inc. (including its subsidiaries) is a leading online provider of aftermarket auto parts and accessories and was established in 1995. The Company entered the e-commerce sector by launching its first website in 2000 and currently derives the majority of its revenues from online sales channels. The Company sells its products to individual consumers through a network of websites and online marketplaces. Through AutoMD.com, the Company also educates consumers on maintenance and service of their vehicles. The site provides auto information, with tools for diagnosing car troubles, locating repair shops and do-it-yourself (“DIY”) repair guides. Our flagship consumer websites are located at www.autopartswarehouse.com , www.carparts.com , www.jcwhitney.com and www.AutoMD.com and our corporate website is located at www.usautoparts.net . References to the “Company,” “we,” “us,” or “our” refer to U.S. Auto Parts Network, Inc. and its consolidated subsidiaries. The Company’s products consist of body parts, hard parts, performance parts and accessories. The body parts category is primarily comprised of replacement parts for the exterior of an automobile. Our parts in this category are typically replacement parts for original body parts that have been damaged as a result of a collision or through general wear and tear. The majority of these products are sold through our websites and wholesale operations. In addition, we sell an extensive line of mirror products, including our own private label brand called Kool-Vue™, which are marketed and sold as aftermarket replacement parts and as upgrades to existing parts. The hard parts category is comprised of engine components and other mechanical and electrical parts. These parts serve as replacement parts for existing engine parts and are generally used by professionals and do-it-yourselfers for engine and mechanical maintenance and repair. We offer performance and accessory versions of many parts sold in each of the above categories. Performance parts and accessories generally consist of parts that enhance the performance of the automobile, upgrade existing functionality of a specific part or improve the physical appearance or comfort of the automobile. The Company is a Delaware C corporation and is headquartered in Carson, California. The Company has employees located in both the United States and the Philippines. Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to U.S. Securities and Exchange Commission (“SEC”) Form 10-Q and Article 10 of SEC Regulation S-X. In the opinion of management, the accompanying consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position of the Company as of July 4, 2015 and the consolidated results of operations for the thirteen and twenty-six weeks ended July 4, 2015 and June 28, 2014 , and cash flows for the twenty-six weeks ended July 4, 2015 and June 28, 2014 . The Company’s results for the interim periods are not necessarily indicative of the results that may be expected for any other interim period, or for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended January 3, 2015 , which was filed with the SEC on March 20, 2015 and all our other periodic filings, including Current Reports on Form 8-K, filed with the SEC after the end of our 2014 fiscal year, and throughout the date of this report. During the thirteen and twenty-six weeks ended July 4, 2015 , the Company incurred a net loss of $775 , and $835 , respectively, compared to a net loss of $2,180 , and $1,979 during the thirteen and twenty-six weeks ended June 28, 2014 . Based on our current operating plan, we believe that our existing cash, cash equivalents, investments, cash flows from operations and available debt financing will be sufficient to finance our operational cash needs through at least the next twelve months. When compared to fiscal year 2014, we expect our net loss to be lower in fiscal year 2015. Should the Company’s operating results not meet expectations in 2015, it could negatively impact our liquidity as we may not be able to provide positive cash flows from operations in order to meet our working capital requirements. We may need to borrow additional funds from our credit facility, which under certain circumstances may not be available, sell assets or seek additional equity or additional debt financing in the future. There can be no assurance that we would be able to raise such additional financing or engage in such additional asset sales on acceptable terms, or at all. If revenues were to decline and the net loss is larger or continues for longer than we expect because our strategies to return to profitability are not successful or otherwise, and if we are not able to raise adequate additional financing or proceeds from asset sales to continue to fund our ongoing operations, we will need to defer, reduce or eliminate significant planned expenditures, restructure or significantly curtail our operations. Segment Data The Company operates in two reportable operating segments. The criteria the Company uses to identify operating segments are primarily the nature of the products we sell or services we provide and the consolidated operating results that are regularly reviewed by our chief operating decision maker to assess performance and make operating decisions. We identified two reportable operating segments, the core auto parts business ("Base USAP"), and AutoMD, Inc. ("AutoMD") an online automotive repair source, in accordance with ASC 280 Segment Reporting (“ASC 280”). Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory,” (“ASU 2015-11”) which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The new standard is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in ASU 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the effect that ASU 2015-11 will have on the consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has the effect of the standard on ongoing financial reporting been determined. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-9, “Revenue from Contracts with Customers,” (“ASU 2014-9”) which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for fiscal years beginning after December 15, 2016. In July, 2015 the FASB affirmed its proposal that the standard take effect for reporting periods beginning after December 15, 2017 and early adoption would be permitted for public companies for reporting periods beginning after December 15, 2016. Early application is not permitted under the current standard. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-9 will have on the consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has the effect of the standard on ongoing financial reporting been determined.

Intangible Assets, Net

Intangible Assets, Net	6 Months Ended
	Jul. 04, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Intangible Assets, Net	Intangible Assets, Net Intangible assets consisted of the following at July 4, 2015 and January 3, 2015 (in thousands): July 4, 2015 January 3, 2015 Useful Life Gross Carrying Amount Accumulated Amort. and Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amort. and Impairment Net Carrying Amount Intangible assets subject to amortization: Product design intellectual property 4 years $ 2,750 $ (2,232 ) $ 518 $ 2,750 $ (2,102 ) $ 648 Patent license agreements 3 - 5 years 562 (156 ) $ 406 537 (94 ) $ 443 Domain and trade names 10 years 1,199 (621 ) $ 578 1,199 (583 ) $ 616 Total $ 4,511 $ (3,009 ) $ 1,502 $ 4,486 $ (2,779 ) $ 1,707 Intangible assets subject to amortization are amortized on a straight-line basis. Amortization expense relating to intangible assets for the thirteen weeks ended July 4, 2015 and June 28, 2014 was $115 and $126 , respectively. Amortization expense relating to intangible assets for the twenty-six weeks ended July 4, 2015 and June 28, 2014 was $230 and $210 , respectively. The following table summarizes the future estimated annual amortization expense for these assets over the next five years: 2015 $ 229 2016 461 2017 324 2018 165 2019 80 Thereafter 243 Total $ 1,502

Borrowings

Borrowings	6 Months Ended
	Jul. 04, 2015
Debt Disclosure [Abstract]
Borrowings	Borrowings The Company maintains an asset-based revolving credit facility ("Credit Facility") that provides for, among other things, a revolving commitment in an aggregate principal amount of up to $25,000 , which is subject to a borrowing base derived from certain receivables, inventory and property and equipment. Upon satisfaction of certain conditions, the Company has the right to increase the revolving commitment to up to $40,000 . The Company, to date, has not requested such an increase. The Credit Facility matures on April 26, 2017 . At July 4, 2015 , our outstanding revolving loan balance was $7,986 . The customary events of default under the Credit Facility (discussed below) include certain subjective acceleration clauses. Management has determined the likelihood of an acceleration is more than remote, considering the recurring losses experienced by the Company. As a result, outstanding borrowings under the Credit Facility have been classified as a current liability. On March 24, 2015, the Company and JPMorgan Chase Bank, N.A. (“JPMorgan”) entered into a Seventh Amendment to Credit Agreement and Second Amendment to Pledge and Security Agreement (the “Amendment”), which amended the Credit Agreement previously entered into by the Company, certain of its domestic subsidiaries and JPMorgan on April 26, 2012 (as amended, the “Credit Agreement”) and the Pledge and Security Agreement previously entered into by the Company, certain of its domestic subsidiaries and JPMorgan on April 26, 2012. Pursuant to the Amendment, the aggregate principal amount of indebtedness that is permitted related to capital leases was increased from $1,000 to $1,500 . Loans drawn under the Credit Facility bear interest, at the Company’s option, at a per annum rate equal to either (a) one month LIBOR plus an applicable margin of 2.25% , or (b) an “alternate prime base rate” plus an applicable margin of 0.25% . Subsequent to June 30, 2016, each applicable margin as set forth in the prior sentence is subject to reduction by up to 0.50% per annum based upon the Company’s fixed charge coverage ratio. At July 4, 2015 , the Company’s LIBOR based interest rate was 2.44% (on $7,900 principal) and the Company’s prime based rate was 3.50% (on $86 principal). A commitment fee, based upon undrawn availability under the Credit Facility bearing interest at a rate of 0.25% per annum, is payable monthly. Under the terms of the Credit Agreement, cash receipts are deposited into a lock-box, which are at the Company’s discretion unless the “cash dominion period” is in effect, during which cash receipts will be used to reduce amounts owing under the Credit Agreement. The cash dominion period is triggered in an event of default or if excess availability is less than the $4,000 as defined, and will continue until, during the preceding 60 consecutive days, no event of default existed and excess availability has been greater than $5,000 at all times. Beginning on July 1, 2016, in the event that “excess availability,” as defined under the Credit Agreement, is less than $2,000 the Company shall be required to maintain a minimum fixed charge coverage ratio of 1.0 to 1.0 . The Company's excess availability, net of the "Availability Block" (as defined under the Credit Agreement) of $2,000 was $11,798 at July 4, 2015. As of the date hereof, the cash dominion period has not been in effect; accordingly, no principal payments are due. As of July 4, 2015 , the Company had total capital leases payable of $9,776 . The present value of the net minimum payments on capital leases as of July 4, 2015 was as follows (in thousands): Total minimum lease payments 18,463 Less amount representing interest (8,687 ) Present value of net minimum lease payments 9,776 Current portion of capital leases payable (339 ) Capital leases payable, net of current portion $ 9,437

Stockholders' Equity and Share-

Stockholders' Equity and Share-Based Compensation	6 Months Ended
	Jul. 04, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stockholders' Equity and Share-Based Compensation	Stockholders’ Equity and Share-Based Compensation Non-Controlling Interest Non-controlling interests represent equity interests in consolidated subsidiaries that are not attributable, either directly or indirectly, to the Company (i.e., minority interests). Non-controlling interests include the minority equity holders' proportionate share of the equity of AutoMD. Ownership interests in subsidiaries held by parties other than the Company are presented as non-controlling interests within stockholders' equity, separately from the equity held by the Company. Revenues, expenses, net loss and other comprehensive income are reported in the consolidated financial statements at the consolidated amounts, which includes amounts allocated to both the Company's interest and the non-controlling interests in AutoMD. Net loss and other comprehensive income is then attributed to the Company's interest and the non-controlling interests. Net loss to non-controlling interests is deducted from net loss in the consolidated statements of comprehensive operations to determine net loss attributable to the Company's common stockholders. The following table summarizes the Company’s stock option activity under the AMD Plan for the twenty-six weeks ended July 4, 2015 , and details regarding the options outstanding and exercisable at July 4, 2015 : Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding, January 3, 2015 180 $1.00 Granted 1,030 $1.00 Exercised — — Expired — — Forfeited — — Options outstanding, July 4, 2015 1,210 $1.00 9.57 $ — Vested and expected to vest at July 4, 2015 902 $1.00 9.57 $ — Options exercisable, July 4, 2015 — — 0.00 $ — At July 4, 2015 , 740 shares were available for future grants under the AMD Plan. The weighted-average fair value of options granted during the twenty-six weeks ended July 4, 2015 and June 28, 2014 was $ 0.54 and $ 0 , respectively. The intrinsic value of stock options at the date of exercise is the difference between the fair value of the stock at the date of the balance sheet and the exercise price. During the twenty-six weeks ended July 4, 2015 and June 28, 2014 , the options had $0 intrinsic value as none were exercisable. The Company had $438 of unrecognized share-based compensation expense related to stock options outstanding as of July 4, 2015 , which expense is expected to be recognized over a weighted-average period of 3.56 years. Options exercised under all share-based compensation plans are granted net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. For those employees who elect not to receive shares net of the minimum statutory withholding requirements, the appropriate taxes are paid directly by the employee. During the twenty-six weeks ended July 4, 2015 , we withheld 27 shares to satisfy $80 of employees' tax obligations and 64 shares related to the net settlement of the stock options. USAP Options and Restricted Stock Units The Company had the following common stock option activity during the twenty-six weeks ended July 4, 2015 : • Granted options to purchase 1,225 common shares. • Forfeitures of 164 options to purchase common shares. The following table summarizes the Company’s restricted stock unit ("RSU") activity for the twenty-six weeks ended July 4, 2015 , and details regarding the awards outstanding and exercisable at July 4, 2015 (in thousands): Shares Weighted Weighted Average Aggregate Awards outstanding, January 3, 2015 880 $ — Awarded 432 $ — Vested (398 ) $ — Forfeited (37 ) $ — Awards outstanding, July 4, 2015 877 $ — 0.59 $ 2,070 Vested and expected to vest at July 4, 2015 818 $ — 0.59 $ 1,930 During the twenty-six weeks ended July 4, 2015 , 398 RSUs vested, of which 221 were time-based and 177 were performance-based. For the majority of RSUs awarded, the number of shares issued on the date the RSUs vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. For those employees who elect not to receive shares net of the minimum statutory withholding requirements, the appropriate taxes are paid directly by the employee. During the twenty-six weeks ended July 4, 2015 , we withheld 151 shares to satisfy $358 of employees' tax obligations. Although shares withheld are not issued, they are treated as a common stock repurchase in our consolidated financial statements, as they reduce the number of shares that would have been issued upon vesting. For the thirteen and twenty-six weeks ended July 4, 2015 , we recorded compensation expense of $ 321 and $558 , respectively. As of July 4, 2015 , there was unrecognized compensation expense of $833 related to unvested RSUs based on awards that are expected to vest. The unrecognized compensation expense is expected to be recognized over a weighted-average period of 0.59 years .

Net Loss Per Share

Net Loss Per Share	6 Months Ended
	Jul. 04, 2015
Earnings Per Share [Abstract]
Net Loss Per Share	Net Loss Per Share Net loss per share has been computed in accordance with ASC 260 Earnings per Share. The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Thirteen Weeks Ended Twenty-Six Weeks Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Net loss per share: Numerator: Net loss attributable to U.S. Auto Parts $ (775 ) $ (2,180 ) (835 ) (1,979 ) Dividends on Series A Convertible Preferred Stock 60 60 120 119 Net loss available to common shares $ (835 ) $ (2,240 ) $ (955 ) $ (2,098 ) Denominator: Weighted-average common shares outstanding (basic) 33,963 33,460 33,842 33,422 Common equivalent shares from common stock options and warrants — — — — Weighted-average common shares outstanding (diluted) 33,963 33,460 33,842 33,422 Basic and diluted net loss per share $ (0.02 ) $ (0.07 ) $ (0.03 ) $ (0.06 ) The weighted-average anti-dilutive securities, which are excluded from the calculation of diluted earnings per share due to the Company's net loss position for the periods then ended (including securities that would otherwise be excluded from the calculation of diluted earnings per share due to the Company's stock price), are as follows (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Common stock warrants 50 50 50 50 Series A Convertible Preferred Stock 4,150 4,150 4,150 4,150 Restricted stock units 867 992 850 661 Options to purchase common stock 6,044 5,787 5,878 5,675 Total 11,111 10,979 10,928 10,536

Income Taxes

Income Taxes	6 Months Ended
	Jul. 04, 2015
Income Tax Disclosure [Abstract]
Income Taxes	Income Taxes The Company is subject to U.S. federal income tax as well as income tax of foreign and state tax jurisdictions. The tax years 2010-2014 remain open to examination by the major taxing jurisdictions to which the Company is subject, except the Internal Revenue Service for which the tax years 2011-2014 remain open. For the thirteen and twenty-six weeks ended July 4, 2015 the effective tax rate for the Company was 25.3% and 23.0% , respectively. The Company's effective tax rate for the thirteen and twenty-six weeks ended July 4, 2015 differed from the U.S. federal statutory rate primarily as a result of the recording of valuation allowance against the pre-tax losses that was offset by the tax benefit resulting from the reduction of excess book basis in the Company's investment in AutoMD over its tax basis due to AutoMD's pre-tax losses. For the thirteen and twenty-six weeks ended June 28, 2014 , the effective tax rate for the Company was (1.0)% and (2.8)% , respectively. The Company’s effective tax rate for the thirteen and twenty-six weeks ended June 28, 2014 differed from the U.S. federal statutory rate primarily as a result of the recording of valuation allowance against the pre-tax losses.

Commitments and Contingencies

Commitments and Contingencies	6 Months Ended
	Jul. 04, 2015
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies Facilities Leases The Company’s corporate headquarters is located in Carson, California. The Company’s corporate headquarters has an initial lease term of five years through October 2016, and an option to renew through January 2020. The Company leases warehouse space in Chesapeake, Virginia under an agreement scheduled to expire in June 2016. The Company’s Philippines subsidiary leases office space under an agreement through April 2020. Facility rent expense for the thirteen and twenty-six weeks ended July 4, 2015 was $399 and $764 , respectively, compared to $612 and $1,075 , for the thirteen and twenty-six weeks ended June 28, 2014 , respectively. The year over year decline is primarily due to the closure of the Carson warehouse facility last year. The Company’s facility rent expense was inclusive of amounts charged from a related party during the thirteen and twenty-six weeks ended June 28, 2014 of $237 and $331 , respectively. Minimum lease commitments under non-cancellable operating leases as of July 4, 2015 were as follows (in thousands): 2015 $ 1,059 2016 1,089 2017 393 2018 412 2019 433 2020 onwards $ 184 Total $ 3,570 On April 17, 2013, the Company entered into a sale lease-back transaction with STORE whereby we leased back our facility located in LaSalle, Illinois for our continued use as an office, retail and warehouse facility for storage, sale and distribution of automotive parts, accessories and related items for 20 years commencing upon the execution of the lease and terminating on April 30, 2033. The lease was accounted for as a capital lease and the $376 excess of the net proceeds over the net carrying amount of the property is amortized in interest expense on a straight-line basis over the lease term of 20 years. Capital lease commitments as of July 4, 2015 were as follows (in thousands): 2015 $ 541 2016 1,043 2017 989 2018 995 2019 1,009 2020 onwards 13,886 Total minimum payments required 18,463 Less amount representing interest (8,687 ) Present value of minimum capital lease payments $ 9,776 The Company entered into purchase commitments in March 2015 for certain warehouse equipment for our LaSalle, Illinois facility. A portion of the equipment totaling $368 was received in June 2015 and has been included in the financial statements and minimum payments shown above. The remaining equipment is expected to be received in July 2015, the payments of which total $1,227 and will commence in July 2015 and end in June 2020. Such amounts have been excluded from the financial statements and minimum payments shown above. Legal Matters Asbestos . A wholly-owned subsidiary of the Company, Automotive Specialty Accessories and Parts, Inc. and its wholly-owned subsidiary WAG, are named defendants in several lawsuits involving claims for damages caused by installation of brakes during the late 1960’s and early 1970’s that contained asbestos. WAG marketed certain brakes, but did not manufacture any brakes. WAG maintains liability insurance coverage to protect its and the Company’s assets from losses arising from the litigation and coverage is provided on an occurrence rather than a claims made basis, and the Company is not expected to incur significant out-of-pocket costs in connection with this matter that would be material to its consolidated financial statements. The Company is subject to legal proceedings and claims which arise in the ordinary course of its business. As of the date hereof, the Company believes that the final disposition of such matters will not have a material adverse effect on the financial position, results of operations or cash flow of the Company. The Company maintains liability insurance coverage to protect the Company’s assets from losses arising out of or involving activities associated with ongoing and normal business operations.

Segment Information

Segment Information	6 Months Ended
	Jul. 04, 2015
Segment Reporting [Abstract]
Segment Information	Segment information As described in Note 1 above, the Company operates in two reportable segments identified as Base USAP, which is the core auto parts business, and AutoMD, an online automotive repair source of which the Company is a majority stockholder. Segment information is prepared on the same basis that our chief executive officer, who is our chief operating decision maker, manages the segments, evaluates financial results, and makes key operating decisions. Management evaluates the performance of its operating segments based on net sales, gross profit and income (loss) from operations. Operating income represents earnings before other income, interest expense and income taxes. The identifiable assets by segment disclosed in this note are those assets specifically identifiable within each segment. Summarized segment information for our continuing operations from the two reportable segments for the periods presented is as follows (in thousands): Base USAP AutoMD Consolidated Thirteen weeks ended July 4, 2015 Net sales $ 76,411 $ 51 $ 76,462 Gross profit $ 20,817 $ 51 $ 20,868 Operating costs (1) $ 21,235 $ 740 $ 21,975 Loss from operations $ (418 ) $ (689 ) $ (1,107 ) Capital expenditures $ 1,373 $ 308 $ 1,681 Depreciation and amortization $ 1,484 $ 338 $ 1,822 Total assets, net of accumulated depreciation $ 70,918 $ 7,197 $ 78,115 Thirteen weeks ended June 28, 2014 Net sales $ 76,883 $ 64 $ 76,947 Gross profit $ 20,356 $ 64 $ 20,420 Operating costs (1) $ 21,734 $ 625 $ 22,359 Loss from operations $ (1,378 ) $ (561 ) $ (1,939 ) Capital expenditures $ 1,201 $ 277 $ 1,478 Depreciation and amortization $ 1,817 $ 435 $ 2,252 Total assets, net of accumulated depreciation $ 63,838 $ 1,651 $ 65,489 Twenty-Six weeks ended July 4, 2015 Net sales $ 152,736 $ 114 $ 152,850 Gross profit $ 42,232 $ 114 $ 42,346 Operating costs (1) $ 41,955 $ 1,516 $ 43,471 Income (loss) from operations $ 277 $ (1,402 ) $ (1,125 ) Capital expenditures $ 3,338 $ 494 $ 3,832 Depreciation and amortization $ 3,033 $ 723 $ 3,756 Total assets, net of accumulated depreciation $ 70,918 $ 7,197 $ 78,115 Twenty -Six weeks ended June 28, 2014 Net sales $ 144,832 $ 143 $ 144,975 Gross profit $ 40,978 $ 143 $ 41,121 Operating costs (1) $ 41,380 $ 1,185 $ 42,565 Loss from operations $ (402 ) $ (1,042 ) $ (1,444 ) Capital expenditures $ 2,344 $ 692 $ 3,036 Depreciation and amortization $ 3,751 $ 869 $ 4,620 Total assets, net of accumulated depreciation $ 63,838 $ 1,651 $ 65,489 (1) Operating costs for AutoMD primarily consist of depreciation and amortization on fixed assets and personnel costs. Indirect costs are not allocated to AutoMD.

AutoMD

AutoMD	6 Months Ended
	Jul. 04, 2015
Noncontrolling Interest [Abstract]
AutoMD	AutoMD On October 8, 2014, AutoMD entered into a Common Stock Purchase Agreement ("Purchase Agreement") to sell an aggregate of 7,000 shares of AutoMD common stock at a purchase price of $1.00 per share to third-party investors and investors that are affiliated with two of our board members. The Company retained 64.1% of AutoMD's outstanding common stock, and continues to consolidate AutoMD. In connection with the sale of the shares of AutoMD, the Company recorded an increase to additional paid-in-capital of $2,534 . This amount is equal to the increase in the Company’s interest in the net assets of AutoMD, resulting from this sale of common shares valued at $3,847 , less the related deferred tax liability of $1,313 . Refer to Note 6 - Income Taxes for additional details. Additionally, pursuant to the terms of the Purchase Agreement, the Company may be required to purchase 2,000 shares of AutoMD common stock at a purchase price of $1.00 per share, with such purchase to be triggered only if as of October 8, 2015 or October 8, 2016, AutoMD does not meet a required minimum number of approved auto repair shops permitted to submit a quotation on AutoMD’s website ("Registered Repair Shops"), or separately if at any time during the two years following the closing date AutoMD fails to meet specified minimum cash balances and minimum numbers of Registered Repair Shops. The Purchase Agreement also limits the use of the $7,000 in proceeds from the sale of AutoMD common stock to only general operating purposes of AutoMD. The Company cannot use or borrow any of the proceeds without the approval of AutoMD's Board of Directors. As of July 4, 2015 AutoMD has exceeded the minimum number of approved auto repair shops required at the October 8, 2015 deadline. In addition to the Purchase Agreement, AutoMD entered into an Investor Rights Agreement. The Investor Rights Agreement includes certain demand and piggyback registration rights, and restrictions on transfers or dilutive transactions involving AutoMD common stock. Prior to October 8, 2017, the Company is prohibited from transferring shares of AutoMD owned by U.S. Auto Parts or enter into any transaction or arrangement (including, without limitation, any sale, gift, merger or consolidation) that would result in U.S. Auto Parts owning, at any time, less than 50% of the shares of capital stock of the Company without the prior written consent of AutoMD shareholders. In the event of a proposed transfer or dilutive transaction for which any shareholder does not provide its written consent, in the alternative, upon not less than 30 days prior written notice to such non-consenting party, the Company may elect, at its sole option, to purchase all shares of the AutoMD common stock then owned by any non-consenting shareholder at a purchase price equal to $1.00 per share (as adjusted for any stock combinations, splits, recapitalizations, etc.) plus an annual rate of 10% thereon, compounded annually. The table below presents the effect of changes in the Company's ownership interest in AutoMD on the Company's equity during the twenty-six weeks ended July 4, 2015 Noncontrolling Interest Balance, January 3, 2015 $ 2,946 Net loss allocable to noncontrolling interest (503 ) Balance, July 4, 2015 $ 2,443

Restructuring Costs

Restructuring Costs	6 Months Ended
	Jul. 04, 2015
Restructuring and Related Activities [Abstract]
Restructuring Costs	Restructuring Costs Fiscal 2014 On June 25, 2014, the Company committed to a plan to permanently close its distribution facility located in Carson, California (the “Carson Distribution Facility”) on July 25, 2014. The Company consolidated the Carson Distribution Facility’s distribution and warehousing operations into the Company’s existing distribution facilities located in LaSalle, Illinois and Chesapeake, Virginia. This consolidation was part of the Company’s continued efforts for simplification and improved efficiencies. The closure of the Carson Distribution Facility resulted in a head count reduction of approximately 77 employees. The following table summarizes the charges related to the restructure recognized during the thirteen weeks ended June 28, 2014 (in thousands): Thirteen Weeks Ended June 28, 2014 Employee severance $ 552 Accounts receivable allowance 73 Total restructuring costs $ 625 The severance costs were included in fulfillment and marketing expense in the second quarter of fiscal 2014 and were paid during the third quarter of fiscal 2014. Substantially all of the unsold inventory in the Carson warehouse on the date of closure was moved to the remaining two warehouses. A charge for $130 was taken for inventory that was not deemed economical to transfer. Additionally, due to expected future capacity constraints, the Company reduced the sales price of certain inventory resulting in a charge of $348 during the second quarter of 2014. The aggregate charge of $478 , was recorded to cost of sales. The severance charges and relocation costs were included in fulfillment expense.

Basis of Presentation and Des16

Basis of Presentation and Description of Company (Policies)	6 Months Ended
	Jul. 04, 2015
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”) for interim financial information and with the instructions to U.S. Securities and Exchange Commission (“SEC”) Form 10-Q and Article 10 of SEC Regulation S-X. In the opinion of management, the accompanying consolidated financial statements contain all adjustments, consisting of normal recurring adjustments, necessary to present fairly the consolidated financial position of the Company as of July 4, 2015 and the consolidated results of operations for the thirteen and twenty-six weeks ended July 4, 2015 and June 28, 2014 , and cash flows for the twenty-six weeks ended July 4, 2015 and June 28, 2014 . The Company’s results for the interim periods are not necessarily indicative of the results that may be expected for any other interim period, or for the full year. These unaudited consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in our Annual Report on Form 10-K for the year ended January 3, 2015 , which was filed with the SEC on March 20, 2015 and all our other periodic filings, including Current Reports on Form 8-K, filed with the SEC after the end of our 2014 fiscal year, and throughout the date of this report.
Segment Data	Segment Data The Company operates in two reportable operating segments. The criteria the Company uses to identify operating segments are primarily the nature of the products we sell or services we provide and the consolidated operating results that are regularly reviewed by our chief operating decision maker to assess performance and make operating decisions. We identified two reportable operating segments, the core auto parts business ("Base USAP"), and AutoMD, Inc. ("AutoMD") an online automotive repair source, in accordance with ASC 280 Segment Reporting (“ASC 280”).
Recent Accounting Pronouncements	Recent Accounting Pronouncements In July 2015, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2015-11, “Simplifying the Measurement of Inventory,” (“ASU 2015-11”) which requires an entity to measure inventory at the lower of cost and net realizable value. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable cost of completion, disposal, and transportation. The new standard is effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. The amendments in ASU 2015-11 should be applied prospectively with earlier application permitted as of the beginning of an interim or annual reporting period. The Company is evaluating the effect that ASU 2015-11 will have on the consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has the effect of the standard on ongoing financial reporting been determined. In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2014-9, “Revenue from Contracts with Customers,” (“ASU 2014-9”) which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. This guidance will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The new standard is effective for fiscal years beginning after December 15, 2016. In July, 2015 the FASB affirmed its proposal that the standard take effect for reporting periods beginning after December 15, 2017 and early adoption would be permitted for public companies for reporting periods beginning after December 15, 2016. Early application is not permitted under the current standard. The standard permits the use of either the retrospective or cumulative effect transition method. The Company is evaluating the effect that ASU 2014-9 will have on the consolidated financial statements and related disclosures. The Company has not yet selected a transition method nor has the effect of the standard on ongoing financial reporting been determined.

Intangible Assets, Net (Tables)

Intangible Assets, Net (Tables)	6 Months Ended
	Jul. 04, 2015
Goodwill and Intangible Assets Disclosure [Abstract]
Summary of Intangible Assets	Intangible assets consisted of the following at July 4, 2015 and January 3, 2015 (in thousands): July 4, 2015 January 3, 2015 Useful Life Gross Carrying Amount Accumulated Amort. and Impairment Net Carrying Amount Gross Carrying Amount Accumulated Amort. and Impairment Net Carrying Amount Intangible assets subject to amortization: Product design intellectual property 4 years $ 2,750 $ (2,232 ) $ 518 $ 2,750 $ (2,102 ) $ 648 Patent license agreements 3 - 5 years 562 (156 ) $ 406 537 (94 ) $ 443 Domain and trade names 10 years 1,199 (621 ) $ 578 1,199 (583 ) $ 616 Total $ 4,511 $ (3,009 ) $ 1,502 $ 4,486 $ (2,779 ) $ 1,707
Summary of Future Estimated Annual Amortization Expense	The following table summarizes the future estimated annual amortization expense for these assets over the next five years: 2015 $ 229 2016 461 2017 324 2018 165 2019 80 Thereafter 243 Total $ 1,502

Borrowings (Tables)

Borrowings (Tables)	6 Months Ended
	Jul. 04, 2015
Debt Disclosure [Abstract]
Present Value of Net Minimum Payments on Capital Leases	The present value of the net minimum payments on capital leases as of July 4, 2015 was as follows (in thousands): Total minimum lease payments 18,463 Less amount representing interest (8,687 ) Present value of net minimum lease payments 9,776 Current portion of capital leases payable (339 ) Capital leases payable, net of current portion $ 9,437 Capital lease commitments as of July 4, 2015 were as follows (in thousands): 2015 $ 541 2016 1,043 2017 989 2018 995 2019 1,009 2020 onwards 13,886 Total minimum payments required 18,463 Less amount representing interest (8,687 ) Present value of minimum capital lease payments $ 9,776

Stockholders' Equity and Shar19

Stockholders' Equity and Share-Based Compensation (Tables)	6 Months Ended
	Jul. 04, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Summary of Stock Option Activity	The following table summarizes the Company’s stock option activity under the AMD Plan for the twenty-six weeks ended July 4, 2015 , and details regarding the options outstanding and exercisable at July 4, 2015 : Shares (in thousands) Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in years) Aggregate Intrinsic Value Options outstanding, January 3, 2015 180 $1.00 Granted 1,030 $1.00 Exercised — — Expired — — Forfeited — — Options outstanding, July 4, 2015 1,210 $1.00 9.57 $ — Vested and expected to vest at July 4, 2015 902 $1.00 9.57 $ — Options exercisable, July 4, 2015 — — 0.00 $ —
Summary of Restricted Stock Unit Activity	The following table summarizes the Company’s restricted stock unit ("RSU") activity for the twenty-six weeks ended July 4, 2015 , and details regarding the awards outstanding and exercisable at July 4, 2015 (in thousands): Shares Weighted Weighted Average Aggregate Awards outstanding, January 3, 2015 880 $ — Awarded 432 $ — Vested (398 ) $ — Forfeited (37 ) $ — Awards outstanding, July 4, 2015 877 $ — 0.59 $ 2,070 Vested and expected to vest at July 4, 2015 818 $ — 0.59 $ 1,930

Net Loss Per Share (Tables)

Net Loss Per Share (Tables)	6 Months Ended
	Jul. 04, 2015
Earnings Per Share [Abstract]
Computation of Basic and Diluted Net Income (Loss) Per Share	The following table sets forth the computation of basic and diluted net loss per share (in thousands, except per share data): Thirteen Weeks Ended Twenty-Six Weeks Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Net loss per share: Numerator: Net loss attributable to U.S. Auto Parts $ (775 ) $ (2,180 ) (835 ) (1,979 ) Dividends on Series A Convertible Preferred Stock 60 60 120 119 Net loss available to common shares $ (835 ) $ (2,240 ) $ (955 ) $ (2,098 ) Denominator: Weighted-average common shares outstanding (basic) 33,963 33,460 33,842 33,422 Common equivalent shares from common stock options and warrants — — — — Weighted-average common shares outstanding (diluted) 33,963 33,460 33,842 33,422 Basic and diluted net loss per share $ (0.02 ) $ (0.07 ) $ (0.03 ) $ (0.06 )
Anti-Dilutive Securities Excluded from Calculation of Diluted Earnings Per Share	The weighted-average anti-dilutive securities, which are excluded from the calculation of diluted earnings per share due to the Company's net loss position for the periods then ended (including securities that would otherwise be excluded from the calculation of diluted earnings per share due to the Company's stock price), are as follows (in thousands): Thirteen Weeks Ended Twenty-Six Weeks Ended July 4, 2015 June 28, 2014 July 4, 2015 June 28, 2014 Common stock warrants 50 50 50 50 Series A Convertible Preferred Stock 4,150 4,150 4,150 4,150 Restricted stock units 867 992 850 661 Options to purchase common stock 6,044 5,787 5,878 5,675 Total 11,111 10,979 10,928 10,536

Commitments and Contingencies (

Commitments and Contingencies (Tables)	6 Months Ended
	Jul. 04, 2015
Commitments and Contingencies Disclosure [Abstract]
Summary of Future Minimum Lease Payments under Non-Cancellable Operating Leases	Minimum lease commitments under non-cancellable operating leases as of July 4, 2015 were as follows (in thousands): 2015 $ 1,059 2016 1,089 2017 393 2018 412 2019 433 2020 onwards $ 184 Total $ 3,570
Summary of Capital Lease Commitments	The present value of the net minimum payments on capital leases as of July 4, 2015 was as follows (in thousands): Total minimum lease payments 18,463 Less amount representing interest (8,687 ) Present value of net minimum lease payments 9,776 Current portion of capital leases payable (339 ) Capital leases payable, net of current portion $ 9,437 Capital lease commitments as of July 4, 2015 were as follows (in thousands): 2015 $ 541 2016 1,043 2017 989 2018 995 2019 1,009 2020 onwards 13,886 Total minimum payments required 18,463 Less amount representing interest (8,687 ) Present value of minimum capital lease payments $ 9,776

Segment Information (Tables)

Segment Information (Tables)	6 Months Ended
	Jul. 04, 2015
Segment Reporting [Abstract]
Summarized Segment Information	Summarized segment information for our continuing operations from the two reportable segments for the periods presented is as follows (in thousands): Base USAP AutoMD Consolidated Thirteen weeks ended July 4, 2015 Net sales $ 76,411 $ 51 $ 76,462 Gross profit $ 20,817 $ 51 $ 20,868 Operating costs (1) $ 21,235 $ 740 $ 21,975 Loss from operations $ (418 ) $ (689 ) $ (1,107 ) Capital expenditures $ 1,373 $ 308 $ 1,681 Depreciation and amortization $ 1,484 $ 338 $ 1,822 Total assets, net of accumulated depreciation $ 70,918 $ 7,197 $ 78,115 Thirteen weeks ended June 28, 2014 Net sales $ 76,883 $ 64 $ 76,947 Gross profit $ 20,356 $ 64 $ 20,420 Operating costs (1) $ 21,734 $ 625 $ 22,359 Loss from operations $ (1,378 ) $ (561 ) $ (1,939 ) Capital expenditures $ 1,201 $ 277 $ 1,478 Depreciation and amortization $ 1,817 $ 435 $ 2,252 Total assets, net of accumulated depreciation $ 63,838 $ 1,651 $ 65,489 Twenty-Six weeks ended July 4, 2015 Net sales $ 152,736 $ 114 $ 152,850 Gross profit $ 42,232 $ 114 $ 42,346 Operating costs (1) $ 41,955 $ 1,516 $ 43,471 Income (loss) from operations $ 277 $ (1,402 ) $ (1,125 ) Capital expenditures $ 3,338 $ 494 $ 3,832 Depreciation and amortization $ 3,033 $ 723 $ 3,756 Total assets, net of accumulated depreciation $ 70,918 $ 7,197 $ 78,115 Twenty -Six weeks ended June 28, 2014 Net sales $ 144,832 $ 143 $ 144,975 Gross profit $ 40,978 $ 143 $ 41,121 Operating costs (1) $ 41,380 $ 1,185 $ 42,565 Loss from operations $ (402 ) $ (1,042 ) $ (1,444 ) Capital expenditures $ 2,344 $ 692 $ 3,036 Depreciation and amortization $ 3,751 $ 869 $ 4,620 Total assets, net of accumulated depreciation $ 63,838 $ 1,651 $ 65,489 (1) Operating costs for AutoMD primarily consist of depreciation and amortization on fixed assets and personnel costs. Indirect costs are not allocated to AutoMD.

AutoMD (Tables)

AutoMD (Tables)	6 Months Ended
	Jul. 04, 2015
Noncontrolling Interest [Abstract]
Schedule of Changes in Company's Ownership Interests in AutoMD	The table below presents the effect of changes in the Company's ownership interest in AutoMD on the Company's equity during the twenty-six weeks ended July 4, 2015 Noncontrolling Interest Balance, January 3, 2015 $ 2,946 Net loss allocable to noncontrolling interest (503 ) Balance, July 4, 2015 $ 2,443

Restructuring Costs (Tables)

Restructuring Costs (Tables)	6 Months Ended
	Jul. 04, 2015
Restructuring and Related Activities [Abstract]
Summary of Charges Related to Restructure	The following table summarizes the charges related to the restructure recognized during the thirteen weeks ended June 28, 2014 (in thousands): Thirteen Weeks Ended June 28, 2014 Employee severance $ 552 Accounts receivable allowance 73 Total restructuring costs $ 625

Basis of Presentation and Des25

Basis of Presentation and Description of Company (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015USD ($)	Jun. 28, 2014USD ($)	Jul. 04, 2015USD ($)segment	Jun. 28, 2014USD ($)
Accounting Policies [Abstract]
Net loss | $	$ (775)	$ (2,180)	$ (835)	$ (1,979)
Number of reportable segments			2
Number of operating segments			2

Intangible Assets, Net - Summar

Intangible Assets, Net - Summary of Intangible Assets (Detail) - USD ($) $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jan. 03, 2015
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	$ 4,511	$ 4,486
Accumulated Amort. and Impairment	(3,009)	(2,779)
Net Carrying Amount	$ 1,502	1,707
Product design intellectual property
Finite-Lived Intangible Assets [Line Items]
Useful Life	4 years
Gross Carrying Amount	$ 2,750	2,750
Accumulated Amort. and Impairment	(2,232)	(2,102)
Net Carrying Amount	518	648
Patent license agreements
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Amount	562	537
Accumulated Amort. and Impairment	(156)	(94)
Net Carrying Amount	$ 406	443
Domain and trade names
Finite-Lived Intangible Assets [Line Items]
Useful Life	10 years
Gross Carrying Amount	$ 1,199	1,199
Accumulated Amort. and Impairment	(621)	(583)
Net Carrying Amount	$ 578	$ 616
Minimum | Patent license agreements
Finite-Lived Intangible Assets [Line Items]
Useful Life	3 years
Maximum | Patent license agreements
Finite-Lived Intangible Assets [Line Items]
Useful Life	5 years

Intangible Assets, Net - Additi

Intangible Assets, Net - Additional Information (Detail) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Goodwill and Intangible Assets Disclosure [Abstract]
Amortization expense relating to intangibles assets	$ 115	$ 126	$ 230	$ 210

Intangible Assets, Net - Summ28

Intangible Assets, Net - Summary of Future Estimated Annual Amortization Expense (Detail) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract]
2,015	$ 229
2,016	461
2,017	324
2,018	165
2,019	80
Thereafter	243
Net Carrying Amount	$ 1,502	$ 1,707

Borrowings - Additional Informa

Borrowings - Additional Information (Detail)	Jul. 01, 2016	Jul. 04, 2015USD ($)	Jun. 30, 2016USD ($)	Mar. 24, 2015USD ($)	Mar. 23, 2015USD ($)	Jan. 03, 2015USD ($)
Line of Credit Facility [Line Items]
Capital leases payable		$ 9,776,000
Revolving loan payable		7,986,000				$ 11,022,000
Revolving Credit Facility
Line of Credit Facility [Line Items]
Event of default amount		0
Principal payments due		0
Jp Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Maximum borrowing capacity		25,000,000
Maximum revolving commitment upon fulfillment of certain conditions (up to)		40,000,000
Revolving loan payable		$ 7,986,000
Aggregate principal amount of indebtedness permitted related to capital leases				$ 1,500,000	$ 1,000,000
Unused credit commitment fee		0.25%
Minimum availability required trigger amount (if less than)		$ 4,000,000
Excess availability (greater than)		$ 5,000
Number of consecutive days excess availability is above required amount		60 days
Excess availability under credit facility		$ 11,798,000
Minimum availability required under availability block		$ 2,000,000
One-Month London Interbank Offered Rate (LIBOR) | Jp Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Applicable margin for LIBOR-based interest rate/ Applicable margin for alternate based rate		2.25%
London Interbank Offered Rate (LIBOR) | Revolving Credit Facility
Line of Credit Facility [Line Items]
Interest rate		2.44%
LIBOR based interest rate, principal		$ 7,900,000
Base Rate | Revolving Credit Facility
Line of Credit Facility [Line Items]
Interest rate		3.50%
Prime based rate, principal		$ 86,000
Base Rate | Jp Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Applicable margin for LIBOR-based interest rate/ Applicable margin for alternate based rate		0.25%
Scenario, Forecast | Jp Morgan Chase Bank | Revolving Credit Facility
Line of Credit Facility [Line Items]
Decrease to the applicable margin (up to)	0.50%
Minimum availability required under availability block			$ 2,000,000
Minimum fixed charge ratio if less than minimum excess availability	1

Borrowings - Present Value of N

Borrowings - Present Value of Net Minimum Payments on Capital Leases (Detail) - USD ($) $ in Thousands	Jul. 04, 2015	Jan. 03, 2015
Debt Disclosure [Abstract]
Capital leases payable	$ 9,776
Total minimum lease payments	18,463
Less amount representing interest	(8,687)
Present value of net minimum lease payments	9,776
Current portion of capital leases payable	(339)	$ (269)
Capital leases payable, net of current portion	$ 9,437	$ 9,270

Stockholders' Equity and Shar31

Stockholders' Equity and Share-Based Compensation - Additional Information (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted (in shares)	1,225
Number of stock options forfeited (in shares)	164
Net settlement of stock options (in shares)	64
Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares withheld to satisfy employee tax obligations	27
Adjustment related employee tax obligations	$ 80
AMD Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of stock options granted (in shares)	1,030
Number of stock options forfeited (in shares)	0
Weighted-average fair value of options granted (in dollars per share)	$ 0.54	$ 0
Intrinsic value	$ 0
Options exercisable (in shares)	0
Unrecognized share-based compensation expense	$ 438
AMD Plan | Stock Option
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares available for grant	740
Weighted-average period of unrecognized share-based compensation expense	3 years 6 months 21 days

Stockholders' Equity and Shar32

Stockholders' Equity and Share-Based Compensation - Summary of Stock Option Activity for AutoMD (Details) - Jul. 04, 2015 - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Total
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Granted (in shares)	1,225
Forfeited (in shares)	(164)
AMD Plan
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward]
Options outstanding, beginning balance (in shares)	180
Granted (in shares)	1,030
Exercised (in shares)	0
Expired (in shares)	0
Forfeited (in shares)	0
Options outstanding, ending balance (in shares)	1,210
Vested and expected to vest, ending balance (in shares)	902
Options exercisable, ending balance (in shares)	0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract]
Options outstanding, weighted average exercise price, beginning balance (in dollars per share)	$ 1
Granted, weighted average exercise price (in dollars per share)	1
Exercised, weighted average exercise price (in dollars per share)	0
Expired, weighted average exercise price (in dollars per share)	0
Forfeited, weighted average exercise price (in dollars per share)	0
Options outstanding, weighted average exercise price, ending balance (in dollars per share)	1
Vested and expected to vest, weighted average exercise price ending balance (in dollars per share)	1
Options exercisable, weighted average exercise price, ending balance (in dollars per share)	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options outstanding, weighted average remaining contractual term (in years)	9 years 6 months 25 days
Vested and expected to vest, weighted average remaining contractual term (in years)	9 years 6 months 25 days
Options exercisable, weighted average remaining contractual term (in years)
Options outstanding, aggregate intrinsic value	$ 0
Vested and expected to vest, aggregate intrinsic value	0
Options exercisable, aggregate intrinsic value	$ 0

Stockholders' Equity and Shar33

Stockholders' Equity and Share-Based Compensation - Summary of Restricted Stock Option Activity (Details) - Jul. 04, 2015 - Restricted Stock Units - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	Total
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
Awards outstanding, beginning balance (in shares)	880
Awarded (in shares)	432
Vested (in shares)	(398)
Forfeited (in shares)	(37)
Awards outstanding, ending balance (in shares)	877
Vested and expected to vest, ending balance (in shares)	818
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract]
Awards outstanding, weighted average exercise price, beginning balance (in dollars per share)	$ 0
Awarded, weighted average exercise price (in dollars per share)	0
Vested, weighted average exercise price (in dollars per share)	0
Forfeited, weighted average exercise price (in dollars per share)	0
Awards outstanding, weighted average exercise price, ending balance (in dollars per share)	0
Vested and expected to vest, weighted average exercise price, ending balance (in dollars per share)	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Additional Disclosures [Abstract]
Awards outstanding, weighted average remaining contractual term (in years)	7 months 2 days
Vested and expected to vest, weighted average remaining contractual term (in years)	7 months 2 days
Awards outstanding, aggregate intrinsic value	$ 2,070
Vested and expected to vest, aggregate intrinsic value	$ 1,930

Stockholders' Equity and Shar34

Stockholders' Equity and Share-Based Compensation - Restricted Stock Units (Details) - Jul. 04, 2015 - USD ($) shares in Thousands, $ in Thousands	Total	Total
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vested		398
Shares withheld to satisfy employee tax obligations		151
Adjustment related employee tax obligations		$ 358
Compensation expense	$ 321	558
Unrecognized compensation expense	$ 833	$ 833
Weighted-average period of unrecognized share-based compensation expense		7 months 2 days
Time-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vested		221
Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Awards vested		177

Net Loss Per Share - Computatio

Net Loss Per Share - Computation of Basic and Diluted Net Income (Loss) Per Share (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Numerator:
Net loss attributable to U.S. Auto Parts	$ (775)	$ (2,180)	$ (835)	$ (1,979)
Dividends on Series A Convertible Preferred Stock	60	60	120	119
Net loss available to common shares	$ (835)	$ (2,240)	$ (955)	$ (2,098)
Denominator:
Weighted-average common shares outstanding (basic) (in shares)	33,963	33,460	33,842	33,422
Common equivalent shares from common stock options and warrants (in shares)	0	0	0	0
Weighted-average common shares outstanding (diluted) (in shares)	33,963	33,460	33,842	33,422
Basic and diluted net loss per share (in dollars per share)	$ (0.02)	$ (0.07)	$ (0.03)	$ (0.06)

Net Loss Per Share - Anti-Dilut

Net Loss Per Share - Anti-Dilutive Securities Excluded from Calculation of Diluted Earnings Per Share (Detail) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted earnings per share	11,111	10,979	10,928	10,536
Common stock warrants
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted earnings per share	50	50	50	50
Series A Convertible Preferred Stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted earnings per share	4,150	4,150	4,150	4,150
Restricted stock units
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted earnings per share	867	992	850	661
Options to purchase common stock
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities excluded from calculation of diluted earnings per share	6,044	5,787	5,878	5,675

Income Taxes - Additional Infor

Income Taxes - Additional Information (Detail)	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Income Tax Disclosure [Abstract]
Effective tax rate	25.30%	(1.00%)	23.00%	(2.80%)

Commitments and Contingencies -

Commitments and Contingencies - Additional Information (Detail) - USD ($) $ in Thousands	Apr. 17, 2013	Jun. 30, 2015	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014	Jul. 01, 2015
Other Commitments [Line Items]
Initial lease term					5 years
Facility rent expense			$ 399	$ 612	$ 764	$ 1,075
Purchase commitments							$ 1,227
Increase in capital lease payments		$ 368			$ 368	0
Nia Chloe, LLC | Director
Other Commitments [Line Items]
Facility rent expense				$ 237		$ 331
LaSalle, Illinois Facility | STORE
Other Commitments [Line Items]
Period of lease under sale and leaseback transaction	20 years
Excess of net proceeds over the net carrying value of capital lease under sale leaseback transaction	$ 376
Facility subject to capital lease | LaSalle, Illinois Facility | STORE
Other Commitments [Line Items]
Estimated useful life of property and equipment	20 years

Commitments and Contingencies39

Commitments and Contingencies - Summary of Future Minimum Lease Payments under Non-Cancellable Operating Leases (Detail) $ in Thousands	Jul. 04, 2015USD ($)
Operating Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2,015	$ 1,059
2,016	1,089
2,017	393
2,018	412
2,019	433
2020 onwards	184
Total	$ 3,570

Commitments and Contingencies40

Commitments and Contingencies - Summary of Capital Lease Commitments (Detail) $ in Thousands	Jul. 04, 2015USD ($)
Capital Leases, Future Minimum Payments Due, Fiscal Year Maturity [Abstract]
2,015	$ 541
2,016	1,043
2,017	989
2,018	995
2,019	1,009
2020 onwards	13,886
Total minimum payments required	18,463
Less amount representing interest	(8,687)
Present value of net minimum lease payments	$ 9,776

Segment Information - Additiona

Segment Information - Additional Information (Detail)	6 Months Ended
	Jul. 04, 2015segment
Segment Reporting [Abstract]
Number of reportable segments	2

Segment Information - Summarize

Segment Information - Summarized Segment Information (Detail) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014	Jan. 03, 2015
Segment Reporting Information [Line Items]
Net sales		$ 76,462	$ 76,947	$ 152,850	$ 144,975
Gross profit		20,868	20,420	42,346	41,121
Operating costs	[1]	21,975	22,359	43,471	42,565
Loss from operations		(1,107)	(1,939)	(1,125)	(1,444)
Capital expenditures		1,681	1,478	3,832	3,036
Depreciation and amortization		1,822	2,252	3,756	4,620
Total assets, net of accumulated depreciation		78,115	65,489	78,115	65,489	$ 82,907
Operating Segments | Base USAP
Segment Reporting Information [Line Items]
Net sales		76,411	76,883	152,736	144,832
Gross profit		20,817	20,356	42,232	40,978
Operating costs	[1]	21,235	21,734	41,955	41,380
Loss from operations		(418)	(1,378)	277	(402)
Capital expenditures		1,373	1,201	3,338	2,344
Depreciation and amortization		1,484	1,817	3,033	3,751
Total assets, net of accumulated depreciation		70,918	63,838	70,918	63,838
Operating Segments | AutoMD
Segment Reporting Information [Line Items]
Net sales		51	64	114	143
Gross profit		51	64	114	143
Operating costs	[1]	740	625	1,516	1,185
Loss from operations		(689)	(561)	(1,402)	(1,042)
Capital expenditures		308	277	494	692
Depreciation and amortization		338	435	723	869
Total assets, net of accumulated depreciation		$ 7,197	$ 1,651	$ 7,197	$ 1,651
[1]	Operating costs for AutoMD primarily consist of depreciation and amortization on fixed assets and personnel costs. Indirect costs are not allocated to AutoMD.

AutoMD (Details)

AutoMD (Details) - Oct. 08, 2014 - AutoMD $ / shares in Units, $ in Thousands	USD ($)board_member$ / sharesshares
Common Stock Purchase Agreement
Noncontrolling Interest [Line Items]
Number of subsidiary shares issued | shares	7,000,000
Purchase price of shares issued | $ / shares	$ 1
Percentage ownership after issuance of shares	64.10%
Issuance of shares	$ 2,534
Increase in Company's interest	3,847
Deferred tax liability as a result of transaction	$ 1,313
Number of shares the Company may be required to purchase | shares	2,000,000
Share price | $ / shares	$ 1
Period following closing date the Company is subject to stock repurchase	2 years
Proceeds from sale of equity in subsidiary	$ 7,000
Investor Rights Agreement
Noncontrolling Interest [Line Items]
Share price | $ / shares	$ 1
Minimum ownership percentage required by the Company in agreement	50.00%
Number of days written notice in event of default of agreement terms	30 days
Annual interest rate in event of default of agreement terms	10.00%
Board Member | Common Stock Purchase Agreement
Noncontrolling Interest [Line Items]
Number of board members affiliated with the transaction | board_member	2

AutoMD - Schedule of Changes in

AutoMD - Schedule of Changes in Company's Ownership Interests in AutoMD (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jul. 04, 2015	Jun. 28, 2014	Jul. 04, 2015	Jun. 28, 2014
Noncontrolling Interest [Abstract]
Beginning balance			$ 2,946
Net loss allocable to noncontrolling interest	$ (247)	$ 0	(503)	$ 0
Ending balance	$ 2,443		$ 2,443

Restructuring Costs (Details)

Restructuring Costs (Details) $ in Thousands	Jun. 25, 2014employee	Jun. 28, 2014USD ($)warehouse
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 625
Fiscal 2,014
Restructuring Cost and Reserve [Line Items]
Head count reduction, number of employees | employee	77
Number of remaining warehouses | warehouse		2
Inventory not deemed economically transferable		$ 130
Inventory write-down		348
Fiscal 2014 | Cost of Sales
Restructuring Cost and Reserve [Line Items]
Aggregate inventory charge		478
Employee severance | Fiscal 2014
Restructuring Cost and Reserve [Line Items]
Restructuring costs		552
Accounts receivable allowance | Fiscal 2014
Restructuring Cost and Reserve [Line Items]
Restructuring costs		$ 73