Advance Auto Parts 2009 Annual Report Download - page 15

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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 are a leading specialty retailer of automotive aftermarket parts, accessories, batteries and maintenance items
primarily operating within the United States. Our stores carry an extensive product line for cars, vans, sport utility
vehicles and light trucks. We serve both "do-it-yourself," or DIY, and “do-it-for-me,” or Commercial, customers.
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., a Delaware corporation, was incorporated in 2001 in conjunction with the acquisition of Discount Auto
Parts, Inc., or Discount. At January 2, 2010, our 2009 fiscal year-end, we operated 3,420 total stores.
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 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.”
The AI segment consists solely of the operations of Autopart International, Inc., or Autopart International, which
operates as an independent, wholly-owned subsidiary and primarily serves the Commercial market. We acquired
Autopart International in September 2005.
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 21, 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 2, 2010, we operated 3,264 AAP stores within the United States, Puerto Rico and the Virgin Islands.
We operated 3,238 stores throughout 39 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, batteries and maintenance items
for domestic and imported cars and light trucks. In addition, we operated 26 stores under the “Western Auto” and
“Advance Auto Parts” trade names, located in Puerto Rico and the Virgin Islands, or Offshore.