Advance Auto Parts 2005 Annual Report Download - page 22

(1) Our fiscal year consists of 52 or 53 weeks ending on the
Saturday nearest to December 31. All fiscal years presented
are 52 weeks, with the exception of 2003, which consists of
53 weeks.
(2) The statement of operations data for each of the years presented
reflects the operating results of the wholesale distribution seg-
ment as discontinued operations.
(3) Represents restocking and handling fees associated with the
return of inventory as a result of our supply chain initiatives.
(4) Selling, general and administrative expenses exclude certain
charges disclosed separately and discussed in notes (5), (6),
(7), (8) and (9) below.
(5) Represents costs of relocating certain equipment held at facil-
ities closed as a result of our supply chain initiatives.
(6) Represents the devaluation of certain property held for sale,
including the $1.6 million charge taken in the first quarter of
2001 and a $10.7 million charge taken in the fourth quarter
of 2001.
(7) Represents expenses related primarily to lease costs associated
with 27 Advance Auto Parts stores identified to be closed at
December 29, 2001 as a result of the Discount Auto Parts, or
Discount, acquisition.
(8) Represents certain expenses related to, among other things,
overlapping administrative functions and store conversions as
a result of the Discount acquisition.
(9) Represents non-cash compensation expense related to stock
options granted to certain of our Team Members, including a
charge of $8.6 million in the fourth quarter of 2001 related to
variable provisions of our stock option plans that were in
place when we were a private company and eliminated in 2001.
(10) Shares outstanding for each of the years presented gives effect
to a 3-for-2 stock split effectuated by us in the form of a 50%
stock dividend distributed on September 23, 2005 and a 2-for-1
stock split effectuated by us in the form of a 100% stock
dividend distributed on January 2, 2004.
(11) Inventory turnover is calculated as cost of sales divided by the
average of beginning and ending inventories. The fiscal 2003
cost of sales excludes the effect of the 53rd week in the amount
of $34.3 million. The fiscal 2001 amounts were calculated
giving effect to the Discount retail net sales and number of
stores for the period from December 2, 2001 (the acquisition
date) through December 29, 2001.
(12) Inventory per store is calculated as ending inventory divided
by ending store count. Ending inventory used in this calculation
excludes certain inventory related to the wholesale distribution
segment with the exception of fiscal 2003 and fiscal 2004.
(13) Accounts payable to inventory ratio is calculated as ending
accounts payable divided by ending inventory. Beginning in
fiscal 2004, as a result of our new vendor financing program, we
aggregate financed vendor accounts payable with accounts
payable to calculate our accounts payable to inventory ratio.
(14) Net working capital is calculated by subtracting current liabil-
ities from current assets.
(15) Capital expenditures for 2001 exclude $34.1 million for
our November 2001 purchase of the Gallman, Mississippi
distribution facility from the lessor in connection with the
Discount acquisition.
(16) Net debt includes total debt and bank overdrafts, less cash and
cash equivalents.
(17) Comparable store sales is calculated based on the change in
net sales starting once a store has been open for 13 complete
accounting periods (each period represents four weeks).
Relocations are included in comparable store sales from the
original date of opening. Stores acquired in the Discount
acquisition are included in the comparable sales calculation
beginning in December 2002, which was 13 complete
accounting periods after the acquisition date of November 28,
2001. We do not include net sales from the 36 Western Auto
retail stores in our comparable store calculation as a result of
their unique product offerings, including automotive service
and tires. In 2003, the comparable store sales calculation
included sales from our 53rd week compared to our first week
of operation in 2003 (the comparable calendar week). In
2004, as a result of the 53rd week in 2003, the comparable
store sales calculation excludes week one of sales from 2003.
(18) Closed stores in 2002 include 133 Discount and Advance
stores closed as part of the integration of Discount.
(19) Total store square footage excludes the square footage of the
Autopart International, or AI, stores.
(20) Average net sales per store is calculated as net sales divided
by the average of beginning and ending number of stores for
the respective period. The fiscal 2005 calculation excludes
the effect of the AI stores. The fiscal 2003 net sales exclude
the effect of the 53rd week in the amount of $63.0 million.
The fiscal 2001 amounts were calculated giving effect to the
Discount retail net sales and number of stores for the period
from December 2, 2001 (the acquisition date) through
December 29, 2001.
(21) Average net sales per square foot is calculated as net sales
divided by the average of the beginning and ending total store
square footage for the respective period. The fiscal 2005
calculation excludes the effect of the AI stores. The fiscal
2003 net sales exclude the effect of the 53rd week in the
amount of $63.0 million. The fiscal 2001 amounts were
calculated giving effect to the Discount retail net sales and
number of stores for the period from December 2, 2001 (the
acquisition date) through December 29, 2001.
SELECTED FINANCIAL DATA (continued)
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