Company: ORLY
Filing Date: 2025-02-28
Form Type: 10-K
Source: 0000898173-25-000008
Chunk: 24

Company: O REILLY AUTOMOTIVE INC
Filing Date: 2025-02-28
Form: 10-K
Item: Item 2P
Chunk 24
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Item 2.  Properties

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Stores, Distribution Centers, and Other Properties:

Of the 6,378 stores we operated at December 31, 2024, 2,658 stores were owned, 3,650 stores were leased from unaffiliated parties, and 70 stores were leased from entities that include one or more of our affiliated directors or members of their immediate family.  Leases with unaffiliated parties generally provide for payment of a fixed base rent, payment of certain tax, insurance, and maintenance expenses and an original term of, at a minimum, 10 years, subject to one or more renewals at our option.  We have entered into separate master lease agreements with each of the affiliated entities for the occupancy of the stores covered thereby.  Such master lease agreements with two of the five affiliated entities have been modified to extend the term of the lease agreement for specific stores.  The master lease agreements or modifications thereto expire on dates ranging from February 28, 2025, to December 31, 2029.  We believe that the lease agreements with the affiliated entities are on terms comparable to those of third parties.  See Note 17 “Related Parties” to the Consolidated Financial Statements for further information on master lease agreements.

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The following table provides information regarding our DCs in operation as of December 31, 2024:

​​​​​​​​​​​​    Operating Square Footage (1)Principal Use​Nature of Occupancy​Number of Locations​(in thousands)Distribution center​Owned​ 23  10,129Distribution center​Leased (2)​ 8  3,155Total​​​ 31  13,284

(1)DC operating square footage includes floor and mezzanine operating square footage and excludes subleased square footage.  

(2)Terms expiring on dates ranging from December 31, 2027, to August 31, 2042.

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In addition, we operate 11 satellite warehouses in Mexico and Canada; these facilities do not provide regular stock order replenishment to stores and are immaterial in the aggregate.  During 2024, we relocated our Springfield DC and Atlanta DC to larger more efficient facilities, which increased store servicing capabilities, and we completed the conversion of our North Little Rock DC facility into a large Hub.   Further enhancing our distribution capabilities, we plan to open a new DC in Stafford, Virginia in