Advance Auto Parts 2007 Annual Report Download - page 25

PART I
Item 1. Business.
Unless the context otherwise requires, “Advance,” “we,” “us,” “our,” and similar terms refer to Advance Auto Parts,
Inc., its predecessor, its subsidiaries and their respective operations. Our fiscal year consists of 52 or 53 weeks ending on
the Saturday closest to December 31 of each year. Fiscal 2003 included 53 weeks of operations. All other fiscal years
presented included 52 weeks of operations.
Overview
We primarily operate within the United States automotive aftermarket industry, which includes replacement
parts (excluding tires), accessories, maintenance items, batteries and automotive chemicals for cars and light trucks
(pickup trucks, vans, minivans and sport utility vehicles). We currently are the second largest specialty retailer of
automotive parts, accessories and maintenance items to "do-it-yourself," or DIY, and “do-it-for-me,” or DIFM,
customers in the United States, based on store count and sales.
We were formed in 1929 as Advance Stores Company, Incorporated and operated as a retailer of general
merchandise until the 1980s. During the 1980s, we sharpened our focus to target sales of automotive parts and
accessories to DIY customers. From the 1980s to the present, we have grown significantly as a result of strong
comparable store sales growth, new store openings and strategic acquisitions. Since 1996, we have aggressively
expanded our sales to DIFM customers through our commercial delivery program. Our parent company, Advance
Auto Parts, Inc., was incorporated in 2001 in conjunction with the acquisition of Discount Auto Parts, Inc., or
Discount. More recently in 2005, we acquired Autopart International, Inc., or AI.
Our Internet address is www.AdvanceAutoParts.com. We make available free of charge through our Internet
website our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and
amendments to those reports filed or furnished pursuant to the Securities Exchange Act of 1934 as soon as
reasonably practicable after we electronically file such material with, or furnish it to, the SEC.
Operating Segments
We conduct our operations in two reportable segments: Advance Auto Parts, or AAP, and AI. The AAP
segment is comprised of our store operations within the United States, Puerto Rico and the Virgin Islands which
operate under the trade names “Advance Auto Parts,” “Advance Discount Auto Parts” and “Western Auto.” The AI
segment consists solely of the operations of Autopart International, which continues to operate as an independent,
wholly-owned subsidiary.
Financial information on our segments is included in Item 7. Management's Discussion and Analysis of
Financial Condition and Results of Operations, of this Annual Report on Form 10-K. In addition, selected financial
data for our segments is available in Note 18, Segment and Related Information, of the Notes to Consolidated
Financial Statements, included in Item 15. Exhibits, Financial Statement Schedules, of this Annual Report on
Form 10-K.
AAP Segment
At December 29, 2007, we operated 3,153 stores within the United States, Puerto Rico and the Virgin Islands.
We operated 3,123 stores throughout 40 states in the Northeastern, Southeastern and Midwestern regions of the
United States. These stores operated under the “Advance Auto Parts” trade name except for certain stores in the state
of Florida, which operated under the “Advance Discount Auto Parts” trade name. These stores offer a broad
selection of brand name and proprietary automotive replacement parts, accessories and maintenance items for
domestic and imported cars and light trucks. In addition, we operated 30 stores under the “Western Auto” and
“Advance Auto Parts” trade names, located in Puerto Rico and the Virgin Islands, or Offshore.
We also provide our customers online shopping and access to over two million stock keeping units, or SKUs.
Our online site allows our customers to pick up merchandise at a conveniently located store or have their purchases
shipped directly to their home or business.
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