Advance Auto Parts 2010 Annual Report Download - page 45

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Investing Activities
For Fiscal 2010, net cash used in investing activities increased by $13.8 million to $199.4 million. The increase
in cash used was primarily due to an increase in new store development expenditures, information technology
investments, and a decrease in proceeds from sales of property and equipment.
For Fiscal 2009, net cash used in investing activities increased by $3.9 million over the prior year to $185.5
million. The increase in cash used was primarily due to an increase in routine spending on our existing stores and
information technology investments, partially offset by fewer stores opened and the timing of store development
expenditures.
Financing Activities
For Fiscal 2010, net cash used in financing activities increased by $56.1 million to $507.6 million. Cash used in
financing activities increased as result of a $522.4 million increase in the repurchase of common stock under our
stock repurchase programs. This was partially offset by a decrease in cash provided by financing activities as a result
of:
• a decrease of $345.7 million in net debt payments, comprised of $251.5 million of net debt repayments
made in Fiscal 2009 and payoff of our $200.0 million term loan in Fiscal 2010 partially offset by proceeds
from the issuance of $294.2 million in senior unsecured notes in Fiscal 2010, net of debt related costs; and
• a $103.9 million decrease in cash flow from financed vendor accounts payable (is primarily offset in
operating activities above as a result of the our vendor program transition in Fiscal 2009).
For Fiscal 2009, net cash used in financing activities increased by $177.1 million over the prior year to $451.5
million. Cash used in financing activities increased as result of:
• a $202.0 million increase in net debt repayments, primarily under our revolving credit facility; and
• a $87.1 million decrease in financed vendor accounts payable driven by the transition of our vendors from
our vendor financing program to our vendor program.
This increase was partially offset by a decrease in cash used in financing activities as a result of a decrease of
$119.4 million in repurchases of common stock under our stock repurchase program.
Long Term Debt
Senior Unsecured Notes
On April 29, 2010, we sold $300 million aggregate principal amount of 5.75% senior unsecured notes due
May 1, 2020, or the Notes, at a public offering price of 99.587% of the principal amount per note. We served as the
issuer of the Notes with each of our domestic subsidiaries serving as subsidiary guarantors. The terms of the Notes
are governed by an indenture and supplemental indenture (which we refer to collectively as the Indenture), dated as
of April 29, 2010, among us, the subsidiary guarantors and Wells Fargo Bank, National Association, as Trustee.
The net proceeds from the offering of the Notes were approximately $294.2 million, after deducting
underwriting discounts and commissions and offering expenses of $4.6 million payable by us. We used the net
proceeds from this offering to repay indebtedness outstanding under our revolving credit facility and term loan.
Amounts repaid under our revolving credit facility may be reborrowed from time to time for operational purposes,
working capital needs, capital expenditures and other general corporate purposes. As of January 1, 2011, we had
$298.8 million outstanding under our Notes.
The Notes bear interest at a rate of 5.75% per year payable semi-annually in arrears on May 1 and November 1
of each year, commencing on November 1, 2010. We may redeem some or all of the Notes at any time or from time
to time, at the redemption price described in the Indenture. In addition, in the event of a Change of Control
Triggering Event (as defined in the Indenture), we will be required to offer to repurchase the Notes at a price equal
to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. The Notes are
currently fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by