Advance Auto Parts 2008 Annual Report Download - page 16

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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 31st of each year. Fiscal 2008 included 53 weeks of operations. All other fiscal years
presented include 52 weeks of operations.
Overview
We operate primarily 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
Commercial, customers in the United States, based on store count and sales.
We were founded 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 comparable
store sales growth, new store openings and strategic acquisitions. Since 1996, we have aggressively expanded our
sales to Commercial 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. 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. The SEC maintains a
website that contains reports, proxy statements and other information regarding issuers that file electronically with
the SEC. These materials may be obtained electronically by accessing the SEC's website at www.sec.gov.
Operating Segments
We operate 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, Inc., which operates as an independent, wholly-owned subsidiary and
primarily serves the Commercial market.
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 January 3, 2009, our 2008 fiscal year-end, we operated 3,243 AAP stores within the United States, Puerto
Rico and the Virgin Islands. 3,215 stores were located 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 28 stores under the
“Western Auto” and “Advance Auto Parts” trade names, located outside the United States, or Offshore.