Advance Auto Parts 2007 Annual Report Download - page 42

(12) Selling, general and administrative, or SG&A, per store is calculated as total SG&A expenses divided by the
average of beginning and ending store count.
(13) The ending store count and/or store square footage used in the calculation of the 2005 ratios has been weighted
for the period of the AI acquisition.
(14) 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 2003 net sales exclude the effect of the 53rd week in the amount of $63.0
million.
(15) 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 2003 net sales exclude the effect of the 53rd week in the
amount of $63.0 million.
Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion and analysis of financial condition and results of operations should be read in
conjunction with "Selected Financial Data," our consolidated historical financial statements and the notes to those
statements that appear elsewhere in this report. Our discussion contains forward-looking statements based upon
current expectations that involve risks and uncertainties, such as our plans, objectives, expectations and intentions.
Actual results and the timing of events could differ materially from those anticipated in these forward-looking
statements as a result of a number of factors, including those set forth under “Forward Looking Statements” and
"Risk Factors" elsewhere in this report.
Our fiscal year ends on the Saturday nearest December 31 of each year, which results in an extra week every
several years (our next 53-week fiscal year is 2008). Our first quarter consists of 16 weeks, and the other three
quarters consist of 12 weeks.
Introduction
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. At December 29, 2007, we operated 3,261 stores
throughout 40 states.
We operate in two reportable segments: Advance Auto Parts, or AAP, and Autopart International, or 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.”
At December 29, 2007, we operated 3,153 stores in the AAP segment, of which 3,123 stores operated under the
trade names “Advance Auto Parts” and “Advance Discount Auto Parts” throughout 40 states in the Northeastern,
Southeastern and Midwestern regions of the United States. These stores offer automotive replacement parts,
accessories and maintenance items. 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.
At December 29, 2007, we operated 108 stores in the AI segment under the “Autopart International” trade
name. We acquired AI in September 2005, and AI operates as an independent, wholly-owned subsidiary. AI’s
business primarily serves the commercial market from its store locations. In addition, its North American Sales
Division services warehouse distributors and jobbers throughout North America.
The following table sets forth the total number of new, closed and relocated stores and stores with commercial
delivery programs during fiscal 2007, 2006 and 2005. We lease approximately 81% of our stores.
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