Advance Auto Parts 2010 Annual Report Download - page 24

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9
Intellectual Property
We own a number of trade names and own and have federally registered several service marks and trademarks,
including “Advance Auto Parts,” “Advance Discount Auto Parts,” “Western Auto,” “Parts America,” “Autopart
International” and “PDQ®” for use in connection with the automotive parts retailing business. In addition, we own
and have registered a number of trademarks for our private label brands. We believe that these trade names, service
marks and trademarks are important to our merchandising strategy. We do not know of any infringing uses that
would materially affect the use of these trade names and marks, and we actively defend and enforce them.
Competition
We operate in both the DIY and Commercial markets of the automotive aftermarket industry. Our primary
competitors are (i) both national and regional retail chains of automotive parts stores, including AutoZone, Inc.,
O'Reilly Automotive, Inc. and The Pep Boys–Manny, Moe & Jack, (ii) discount stores and mass merchandisers that
carry automotive products, (iii) wholesalers or jobber stores, including those associated with national parts
distributors or associations, such as NAPA and Carquest, (iv) independent operators and (v) automobile dealers that
supply parts. We believe that chains of automotive parts stores that, like us, have multiple locations in one or more
markets, have competitive advantages in customer service, marketing, inventory selection, purchasing and
distribution as compared to independent retailers and jobbers that are not part of a chain or associated with other
retailers or jobbers. The principal methods of competition in our business include customer service, product
offerings, availability, quality, price and store location.
Environmental Matters
We are subject to various federal, state and local laws and governmental regulations relating to the operation of
our business, including those governing recycling of automotive lead-acid batteries and used automotive oil, and
ownership and operation of real property. We sell consumer products containing hazardous materials as part of our
business. In addition, our customers may bring automotive lead-acid batteries or used automotive oil onto our
properties. We currently provide collection and recycling programs for used lead-acid batteries and used oil at
substantially all of our stores as a service to our customers. Pursuant to agreements with third party vendors, lead-
acid batteries and used oil are collected by our Team Members, deposited onto pallets or into vendor supplied
containers and stored by us until collected by the third party vendors for recycling or proper disposal. The terms of
our contracts with third party vendors provide that they are in compliance with all applicable laws and regulations.
Persons who arrange for the removal, disposal, treatment or other handling of hazardous or toxic substances may be
liable for the costs of removal or remediation at any affected disposal, treatment or other site affected by such
substances. Based on our experience, we do not believe that there are any material environmental costs associated
with the current business practice of accepting lead-acid batteries and used oil as these costs are borne by the
respective third party vendors.
We own and lease real property. Under various environmental laws and regulations, a current or previous owner
or operator of real property may be liable for the cost of removal or remediation of hazardous or toxic substances on,
under or in such property. These laws often impose joint and several liability and may be imposed without regard to
whether the owner or operator knew of, or was responsible for, the release of such hazardous or toxic substances.
Other environmental laws and common law principles also could be used to impose liability for releases of
hazardous materials into the environment or work place, and third parties may seek recovery from owners or
operators of real properties for personal injury or property damage associated with exposure to released hazardous
substances. From time to time, we receive notices from the Environmental Protection Agency and state
environmental authorities indicating that there may be contamination on properties we own, lease or operate or may
have owned, leased or operated in the past or on adjacent properties for which we may be responsible. Compliance
with these laws and regulations has not had a material impact on our operations to date.