Advance Auto Parts 2009 Annual Report Download - page 45

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At January 2, 2010, our cash and cash equivalents balance was $100.0 million, an increase of $62.7 million
compared to January 3, 2009 (the end of Fiscal 2008). This increase resulted from additional cash flows from
operating activities (including higher net income, slower growth in inventory, net of our accounts payable ratio, and
increase in deferred income taxes) and a decrease in repurchases of our common stock partially offset by an increase
in the net repayment of debt. Additional discussion of our cash flow results is set forth in the Analysis of Cash Flows
section.
At January 2, 2010, our outstanding indebtedness was $251.9 million lower when compared to January 3, 2009
and consisted of borrowings of $200.0 million under our term loan, $3.3 million outstanding on an economic
development note and $1.0 million outstanding under other financing arrangements. Additionally, we had $99.8
million in letters of credit outstanding, which reduced our total availability under the revolving credit facility to
$650.2 million. The letters of credit serve as collateral for our self-insurance policies and routine purchases of
imported merchandise.
We have 15 lenders participating in our revolving credit facility, each with a commitment of not more than 15%
of the total $750 million commitment. All of these lenders have met their contractual funding commitments to us
through January 2, 2010. An inability to obtain sufficient financing at cost-effective rates could have a materially
adverse impact on our business, financial condition, results of operations and cash flows.
Capital Expenditures
Our primary capital requirements have been the funding of our continued store expansion program, including
new store openings and store acquisitions, store relocations, maintenance of existing stores, the construction and
upgrading of distribution centers, and the development of proprietary information systems and purchased
information systems. Our capital expenditures were $192.9 million in Fiscal 2009, or $7.9 million more than Fiscal
2008, primarily due to routine spending on our existing stores and information technology investments, partially
offset by fewer stores opened and the timing of store development expenditures. During Fiscal 2009, we opened 75
AAP and 32 AI stores, remodeled 13 AAP stores and relocated 6 AAP and 4 AI stores.
Our future capital requirements will depend in large part on the number of and timing for new stores we open or
acquire within a given year and the investments we make in information technology and supply chain networks.
During Fiscal 2010, we anticipate adding 110 new AAP and 40 new AI stores. We expect to relocate and remodel
existing stores only in the normal course of business.
We also plan to make continued investments in the maintenance of our existing stores and supply chain network
and to invest in new information systems to support our turnaround strategies, including the multi-year
implementation of a merchandising system. In Fiscal 2010, we anticipate that our capital expenditures will be
approximately $220.0 million to $240.0 million.
Stock Repurchase Program
Our stock repurchase program allows us to repurchase our common stock on the open market or in privately
negotiated transactions from time to time in accordance with the requirements of the Securities and Exchange
Commission.
During Fiscal 2009, we repurchased 2.5 million shares of common stock at an aggregate cost of $99.6 million,
or an average price of $40.36 per share, leaving $89.4 million remaining under our $250 million stock repurchase
program, excluding related expenses.
Subsequent to January 2, 2010, our Board of Directors authorized a new $500 million stock repurchase program
on February 16, 2010. The new program cancelled and replaced the remaining portion of our previous $250 million
stock repurchase program, which was authorized on May 15, 2008. As of February 26, 2010, we have repurchased
1.4 million shares of our common stock at an aggregate cost of $56.2 million, or an average price of $40.40 per
share, under our $500 million stock repurchase program.