Advance Auto Parts 2010 Annual Report Download - page 17

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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. We began our Commercial delivery program in
1996 and have significantly increased our sales to Commercial customers since 2000. 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 1, 2011, our 2010 fiscal year-end, we operated 3,563 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 them 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, Inc., or AI.
The AAP segment is comprised of our store operations within the Northeastern, Southeastern and Midwestern
regions of 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 AI. AI’s business operates under the “Autopart International” trade name and primarily serves the Commercial
market from its store locations in the Northeastern and Mid-Atlantic regions of the United States and Florida. We
acquired AI 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 1, 2011, we operated 3,369 AAP stores within the United States, Puerto Rico and the Virgin Islands.
We operated 3,343 AAP 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 private label automotive replacement parts, accessories, batteries and maintenance
items for domestic and imported cars and light trucks. In addition, we operated 26 AAP stores under the “Advance
Auto Parts” and “Western Auto” trade names, located in Puerto Rico and the Virgin Islands, or Offshore. Through