Advance Auto Parts 2012 Annual Report Download

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80 years of service.
2012 | Annual Report
5008 Airport Road | Roanoke, Virginia 24012 | (877) Advance | (877) 238 – 2623 | AdvanceAutoParts.com
| 2012 Annual Report

Table of contents

  • Page 1
    80 years of service. 2012 | Annual Report

  • Page 2
    ... 60 64 66 65 65 Commercial Customer Satisfaction (5) (5) (1) Our fiscal year sales results reported in the referenced chart have been reported on a comparable operating basis. Refer to "Selected Consolidated Financial Data" on page 19 of our 2012 Form 10-K included in this Annual Report for the...

  • Page 3
    ... parts availability and grow our business with Commercial customers. These capabilities include the launch of our in-house commercial credit program, the opening of our new daily replenishment distribution center in Remington, Indiana, our new B2B ordering platform and continued hub store expansions...

  • Page 4
    ... delivery speed and reliability, increased customer retention, and growth of national and regional accounts. • Improving our in-market parts availability through HUB expansions, better tailoring our product assortment and leveraging our supply chain infrastructure. • Expanding new store openings...

  • Page 5
    ... Offices) 5008 Airport Road Roanoke, VA (Zip Code) 24012 (Registrant's telephone number, including area code) (540) 362-4911 Securities Registered Pursuant to Section 12(b) of the Act Title of each class Common Stock ($0.0001 par value) Name of each exchange on which registered New York Stock...

  • Page 6
    ... completed second fiscal quarter, the aggregate market value of the 72,989,206 shares of Common Stock held by non-affiliates of the registrant was $5,217,268,445, based on the last sales price of the Common Stock on July 13, 2012, as reported by the New York Stock Exchange. As of February 22, 2013...

  • Page 7
    ......Principal Accountant Fees and Services ...37 37 37 37 37 Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities ...Selected Consolidated Financial Data...Management's Discussion and Analysis of Financial Condition and Results of Operations...

  • Page 8
    ...for new store locations, the integration of any acquired businesses and the continued increase in supply chain capacity and efficiency; our dependence on our suppliers to provide us with products that comply with safety and quality standards; our ability to attract and retain qualified employees, or...

  • Page 9
    ...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. At December 29, 2012, the end of our 2012 fiscal year, or Fiscal 2012, we operated 3,794 total...

  • Page 10
    ... Battery & wiper installation; Battery charging; Check engine light reading where allowed by law; Electrical system testing, including batteries, starters, alternators and sensors; "How-To" Video Clinics; Oil and battery recycling; and Loaner tool program. Our stores are 100% company operated...

  • Page 11
    ... Arkansas Colorado Connecticut Delaware Florida Georgia Illinois Indiana Iowa Kansas Kentucky Louisiana Maine Location Maryland Massachusetts Michigan Minnesota Mississippi Missouri Nebraska New Hampshire New Jersey New Mexico New York North Carolina Ohio Oklahoma Location Pennsylvania Puerto Rico...

  • Page 12
    ... our customers in their parts selection and ordering based on the year, make, model and engine type of their vehicles. Our store system provides real-time inventory tracking at the store level allowing store Team Members to check the quantity of on-hand inventory for any SKU, adjust stock levels...

  • Page 13
    ...with service level goals, vendor lead times and cost of inventory assumptions to determine the timing and size of purchase orders. The vast majority of our purchase orders are sent to our merchandise vendors via electronic data interchange. During 2012 we opened our Remington, IN distribution center...

  • Page 14
    ...and 4% employed in our corporate offices. We have never experienced any labor disruption. We believe that our Team Member relations are good. Intellectual Property We own a number of trade names and own and have federally registered several service marks and trademarks, including "Advance Auto Parts...

  • Page 15
    ...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...

  • Page 16
    ... recognition, location, price, quality, product availability and customer service. We compete in both the DIY and Commercial categories of the automotive aftermarket industry, primarily with: (i) national and regional retail automotive parts chains, (ii) discount stores and mass merchandisers that...

  • Page 17
    ... at cost-effective interest rates; and our ability to manage the expansion and hire, train and retain qualified sales associates. We are unsure whether we will be able to open and operate new stores on a timely or sufficiently profitable basis, or that opening new stores in markets we already...

  • Page 18
    Supply Chain Our store inventories are primarily replenished by shipments from our network of distribution centers, PDQ® warehouses and HUB stores. As we service our growing store base, we will need to increase the capacity of our supply chain network in order to provide the added parts ...

  • Page 19
    ... for them to obtain the credit lines or loans necessary to finance their operations in the short-term or long-term and meet our product requirements. Financial or operational difficulties that some of our suppliers may face could also increase the cost of the products we purchase from them or our...

  • Page 20
    ...of crude oil, gasoline, diesel fuel and energy costs. Such price increases would increase the cost of doing business for us and our suppliers, and also would negatively impact our customers' disposable income and have an adverse impact on our business, sales, profit margins and results of operations...

  • Page 21
    ... (through an impact on our inventory availability, cost of sales, operations or demand for the products we sell) could adversely affect our business, financial condition, results of operations and cash flows. Significant increases in fuel economy requirements or new federal or state restrictions on...

  • Page 22
    ...Rochester, New York Leicester, Massachusetts Washington, DC Houston, Texas Denver, Colorado West Deptford, New Jersey Indianapolis, Indiana Durham, North Carolina Corporate/Administrative Offices: Roanoke, Virginia Norton, Massachusetts Minneapolis, Minnesota (1) Opening Date Area Served Size (Sq...

  • Page 23
    ... of these claims and were ordered to pay damages that were not covered by insurance, these claims could have a material adverse effect on our operating results, financial position and cash flows. Historically, our asbestos claims have been inconsistent in type and number and have been immaterial. As...

  • Page 24
    .... Our common stock is listed on the New York Stock Exchange, or NYSE, under the symbol "AAP." The table below sets forth the high and low sale prices per share for our common stock, as reported by the NYSE, for the fiscal periods indicated. High Fiscal Year Ended December 29, 2012 Fourth Quarter...

  • Page 25
    ... not intended to forecast the possible future performance of our common stock. COMPARISON OF CUMULATIVE TOTAL RETURN AMONG ADVANCE AUTO PARTS, INC., S&P 500 INDEX AND S&P RETAIL INDEX Company/Index Advance Auto Parts S&P 500 Index S&P Retail Index December 29, 2007 $ 100.00 100.00 100.00 January...

  • Page 26
    ...," and our consolidated financial statements and the related notes included elsewhere in this report. Fiscal Year (1) 2012 2011 2010 2009 2008 (in thousands, except per share data, store data and ratios) Statement of Operations Data: Net Sales Cost of sales Gross Profit Selling, general and...

  • Page 27
    ...year New stores Closed stores Number of stores, end of period Stores with commercial delivery program, end of period Total commercial sales, as a percentage of total sales (in 000s) Average net sales per store (in 000s) Operating income per store (in 000s) Gross margin return on inventory (11) Total...

  • Page 28
    ....com. Our online website allows our DIY customers to pick up merchandise at a conveniently located store or have their purchases shipped directly to their home or business. Our Commercial customers can conveniently place their orders online. At December 29, 2012, we operated 218 stores in the AI...

  • Page 29
    ... produce favorable financial results over the long term. Sales to Commercial customers remain the biggest opportunity for us to increase our overall market share in the automotive aftermarket industry. Our Commercial sales, as a percentage of total sales, increased to 38% in Fiscal 2012 compared to...

  • Page 30
    ... training and customer engagement. Acquisition On December 31, 2012, we acquired B.W.P. Distributors, Inc. ("BWP"), a privately held company that supplies, markets and distributes automotive aftermarket parts and products principally to Commercial customers. BWP operates or supplies 216 locations...

  • Page 31
    ... even longer as the economy slowly recovers contributing to the trend of an aging vehicle population. Store Development by Segment The following table sets forth the total number of new, closed and relocated stores and stores with Commercial delivery programs during Fiscal 2012, 2011 and 2010 by...

  • Page 32
    ... expenses, including salaries and related benefits of store support center Team Members, share-based compensation expense, store support center administrative office expenses, data processing, professional expenses, self-insurance costs, closed store expense, impairment charges, if any, and other...

  • Page 33
    ... 2011, an increase of 36 basis points. This increase as a percentage of net sales was primarily due to expense deleverage as a result of the Company's lower sales volume and increased new store openings in the second half of Fiscal 2012, partially offset by lower incentive compensation. Operating...

  • Page 34
    ... of 24 basis points. This decrease in gross profit as a percentage of net sales was driven by increased shrink expense, supply chain deleverage due to investments in HUBs and higher fuel costs and commodity price inflation partially offset by improved merchandising and pricing capabilities (such as...

  • Page 35
    ... in Fiscal 2012, an increase of $3.1 million over Fiscal 2011. Our future capital requirements will depend in large part on the number of and timing for new stores we open within a given year and the investments we make in our existing stores, information technology and our supply chain network. In...

  • Page 36
    ... parts, the opening of our new distribution center, continued expansion of our HUB network and new store growth, coupled with a smaller increase in our accounts payable ratio versus the prior year; a $26.1 million decrease in provision for deferred income taxes due to the lapse of certain corporate...

  • Page 37
    ... chain and information technology as well as the acquisition of two small technology companies in support of our e-commerce strategy. The majority of the increase in our supply chain investments is related to the completion of our Remington distribution center. Financing Activities For Fiscal 2012...

  • Page 38
    ... term of one year or less and primarily serve as collateral for our self-insurance policies. The interest rate on borrowings under the revolving credit facility is based, at our option, on an adjusted LIBOR rate, plus a margin, or an alternate base rate, plus a margin. The current margin is 1.5% per...

  • Page 39
    ... taxes, self-insurance liabilities, unrecognized income tax benefits, closed store liabilities and obligations for employee benefit plans for which no contractual payment schedule exists and we expect the payments to occur beyond 12 months from December 29, 2012. Accordingly, the related balances...

  • Page 40
    ...Furthermore, we have consistently completed a similar number of physical inventories at comparable times throughout the year. Our inventory consists primarily of parts, batteries, accessories and other products used on vehicles that have reasonably long shelf lives. Although the risk of obsolescence...

  • Page 41
    ... at a prorated cost if under a warranty and not covered by the manufacturer. Merchandise sold with warranty coverage by us primarily includes batteries but may also include other parts such as brakes and shocks. We estimate and record a reserve for future warranty claims at the time of sale based on...

  • Page 42
    ...is limited because our customer base consists of a large number of customers with relatively small balances, which allows the credit risk to be spread across a broad base. We strive to maintain a close working relationship with our vendors and frequently monitor their financial strength. We have not...

  • Page 43
    ... designed to ensure that information required to be disclosed by us in our reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to our management, including our principal executive officer and principal financial officer, as appropriate to allow...

  • Page 44
    ... in the sections entitled "Corporate Governance" and "Meetings and Committees of the Board" in the 2013 Proxy Statement, which is incorporated herein by reference. Item 14. Principal Accountant Fees and Services. See the information set forth in the section entitled "2012 and 2011 Audit Fees" in the...

  • Page 45
    ...Consolidated Financial Statements of Advance Auto Parts, Inc. and Subsidiaries for the years ended December 29, 2012, December 31, 2011 and January 1, 2011: Reports of Independent Registered Public Accounting Firm...Consolidated Balance Sheets ...Consolidated Statements of Operations ...Consolidated...

  • Page 46
    ... for Financial Statements Management of Advance Auto Parts, Inc. and its subsidiaries (collectively the "Company") is responsible for the preparation, integrity, consistency and objectivity of the consolidated financial statements and supplemental financial information in this Annual Report on Form...

  • Page 47
    ... PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Advance Auto Parts, Inc. and Subsidiaries Roanoke, Virginia We have audited the accompanying consolidated balance sheets of Advance Auto Parts, Inc. and subsidiaries (the "Company") as of December 29, 2012 and December 31, 2011...

  • Page 48
    ... OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM To the Board of Directors and Stockholders of Advance Auto Parts, Inc. and Subsidiaries Roanoke, Virginia We have audited the internal control over financial reporting of Advance Auto Parts, Inc. and subsidiaries (the "Company") as of December 29...

  • Page 49
    ... portion of long-term debt Accounts payable Accrued expenses Other current liabilities Total current liabilities Long-term debt Other long-term liabilities Commitments and contingencies Stockholders' equity: Preferred stock, nonvoting, $0.0001 par value, 10,000 shares authorized; no shares issued or...

  • Page 50
    ... (in thousands, except per share data) Fiscal Years 2011 $ 6,170,462 3,101,172 3,069,290 2,404,648 664,642 (30,949) (457) (31,406) 633,236 238,554 $ $ $ 394,682 5.21 5.11 75,620 77,071 $ $ $ $ 2012 Net sales Cost of sales, including purchasing and warehousing costs Gross profit Selling, general and...

  • Page 51
    ... employee stock purchase plan Treasury stock purchased Cash dividends Other Balance, January 1, 2011 Net income Total other comprehensive income Issuance of shares upon the exercise of stock options Tax withholdings related to the exercise of stock appreciation rights Tax benefit from share...

  • Page 52
    ... costs Early extinguishment of debt Borrowings under credit facilities Payments on credit facilities Dividends paid Proceeds from the issuance of common stock, primarily exercise of stock options Tax withholdings related to the exercise of stock appreciation rights Excess tax benefit from share...

  • Page 53
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS For the Years Ended December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands) Fiscal Years 2012 Supplemental cash flow information: Interest paid Income tax payments Non-cash transactions: Accrued purchases...

  • Page 54
    ...service to its Commercial customers' places of business, including independent garages, service stations and auto dealers, utilizing a fleet of vehicles to deliver product from its 3,266 store locations with delivery service. Autopart International ("AI"), a subsidiary of Stores, operates 218 stores...

  • Page 55
    ...merchandise inventory is determined using the last-in, first-out ("LIFO") method. Under the LIFO method, the Company's cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs relating to prices paid in prior years. Vendor...

  • Page 56
    ... at a prorated cost if under a warranty and not covered by the manufacturer. Merchandise sold with warranty coverage by the Company primarily includes batteries but may also include other parts such as brakes and shocks. The Company estimates its warranty obligation at the time of sale based on the...

  • Page 57
    ... to the Company's commercial delivery customers. For e-commerce sales, revenue is recognized either at the time of pick-up at one of the Company's store locations or at the time of shipment depending on the customer's order designation. Sales are recorded net of discounts, sales taxes and estimated...

  • Page 58
    ... asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., discounted cash flow analysis). There were no material impairment losses in the three years ended December 29, 2012. Earnings per Share The Company uses the two-class method to calculate...

  • Page 59
    ... AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) Lease Accounting The Company leases certain store locations, distribution centers, office space, equipment and vehicles...

  • Page 60
    ... our commercial delivery program, including payroll and benefit costs, and transportation expenses associated with moving merchandise inventories from our retail store to our customer locations; Self-insurance costs; Professional services; Other administrative costs, such as credit card service fees...

  • Page 61
    ... as the Company has been able to leverage its continued growth, execution of merchandise strategies and realization of supply chain efficiencies. Product Cores The remaining inventories are comprised of product cores, the non-consumable portion of certain parts and batteries, which are valued under...

  • Page 62
    ... the Company's DIY customers to more easily manage the maintenance of their vehicles and the Company's Commercial customers to grow their business through superior diagnostic and repair lookup functionality. None of the goodwill added in FY 2011 is expected to be deductible for income tax purposes...

  • Page 63
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) Intangible Assets Other Than Goodwill As noted previously, in Fiscal 2011, the Company recorded increases to ...

  • Page 64
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) 5. Receivables, net: Receivables consist of the following: December 29, 2012 Trade Vendor Other Total receivables ...

  • Page 65
    ... December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) The interest rate on borrowings under the Facility is based, at the Company's option, on an adjusted LIBOR rate, plus a margin, or an alternate base rate, plus a margin. The current margin is 1.5% per...

  • Page 66
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) Debt Guarantees Certain 100% wholly-owned domestic subsidiaries of Stores, including its Material Subsidiaries (as ...

  • Page 67
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) The table below presents the effect of the Company's derivative financial instruments on the statement of operations...

  • Page 68
    ... per share data) The following table sets forth the Company's financial liabilities that were measured at fair value on a recurring basis as of December 29, 2012 and December 31, 2011: Fair Value Measurements at Reporting Date Using Level 1 Level 2 Level 3 Quoted Prices in Significant Active Markets...

  • Page 69
    ... are depreciated on the straight-line method over three to five years. 10. Accrued Expenses: Accrued expenses consist of the following: December 29, 2012 Payroll and related benefits Warranty reserves Capital expenditures Self-insurance reserves Taxes payable Other Total accrued expenses $ $ 79,756...

  • Page 70
    ...: December 29, 2012 Deferred income taxes Self-insurance reserves Other Total long-term liabilities 12. Stock Repurchase Program: The Company's stock repurchase program allows it to repurchase its common stock on the open market or in privately negotiated transactions from time to time in accordance...

  • Page 71
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) The following table illustrates the computation of basic and diluted earnings per share for Fiscal 2012, 2011 and ...

  • Page 72
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) The provision for income taxes differed from the amount computed by applying the federal statutory income tax rate ...

  • Page 73
    ... Tax Benefits The following table lists each category and summarizes the activity of the Company's gross unrecognized tax benefits for the fiscal years ended December 29, 2012, December 31, 2011 and January 1, 2011: December 29, 2012 Unrecognized tax benefits, beginning of period Increases related...

  • Page 74
    ...completion of current income tax examinations. The Company files U.S. and state income tax returns in jurisdictions with varying statutes of limitations. The Internal Revenue Service completed an examination of the Company's 2008 and 2009 tax returns. Fiscal 2010 and subsequent years remain open and...

  • Page 75
    ... of operations or liquidity. 17. Benefit Plans: 401(k) Plan The Company maintains a defined contribution benefit plan, which covers substantially all Team Members after one year of service and who have attained the age of 21. The plan allows for Team Member salary deferrals, which are matched at...

  • Page 76
    ... AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) Postretirement Plan The Company provides certain health and life insurance benefits for eligible retired Team Members...

  • Page 77
    ... annually related to the issuance of share-based compensation is included in SG&A. The Company receives cash when Team Members purchase stock under the employee stock purchase plan ("ESPP"), as well as upon the exercise of stock options that were granted prior to Fiscal 2007. Total share-based...

  • Page 78
    ... based on the market price of the Company's common stock on the date of grant. The weighted average fair value of RSUs and restricted shares granted during Fiscal 2012, 2011 and 2010 was $75.26, $67.79 and $64.58 per share, respectively. The total grant date fair value of RSUs and restricted...

  • Page 79
    ... table summarizes the performance-based RSUs and restricted stock activity for the fiscal year ended December 29, 2012: Weighted-Average Grant Date Fair Value $ 38.46 75.20 55.33 27.56 51.85 $ 63.08 Number of Awards Nonvested at December 31, 2011 Granted Change in units based on performance Vested...

  • Page 80
    ...of SARs. Employee Stock Purchase Plan The Company also offers an ESPP. Eligible Team Members may purchase the Company's common stock at a discount to its fair market value on the date of purchase. During Fiscal 2012, the Company increased this discount from 5% to 10%. There are annual limitations on...

  • Page 81
    ... Rico and the Virgin Islands under the trade names "Advance Auto Parts" and "Advance Discount Auto Parts." These stores offer a broad selection of brand name and proprietary automotive replacement parts, accessories and maintenance items for domestic and imported cars and light trucks. The Company...

  • Page 82
    ... of the Company's business segments for the years ended December 29, 2012, December 31, 2011 and January 1, 2011, respectively. 2012 Net sales AAP AI Eliminations Total net sales Percentage of Sales, by Product Group in AAP Segment (2) Parts and Batteries Accessories Chemicals Oil Other Total Income...

  • Page 83
    ...share amount for the year. 22. Subsequent Event: On December 31, 2012, the Company acquired B.W.P. Distributors, Inc. ("BWP") in an all-cash transaction. BWP, a privately held company that supplies, markets and distributes automotive aftermarket parts and products principally to commercial customers...

  • Page 84
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Condensed Parent Company Balance Sheets December 29, 2012 and December 31, 2011 (in thousands, except per share data) December 29, 2012 Assets Cash and cash equivalents Other current assets Property and equipment...

  • Page 85
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Condensed Parent Company Statements of Operations For the Years Ended December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) Fiscal Years 2012 Selling, general and ...

  • Page 86
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Condensed Parent Company Statements of Cash Flows For the Years Ended December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands) Fiscal Years 2012 Cash flows from operating activities: Net income ...

  • Page 87
    ... market funds with original maturities of three months or Share-Based Payments The Company grants share-based compensation awards to certain executive-level Team Members and members of its Board of Directors as provided for under its 2004 Long-Term Incentive Plan. The Company's accounting policy...

  • Page 88
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Notes to the Condensed Parent Company Statements December 29, 2012, December 31, 2011 and January 1, 2011 (in thousands, except per share data) Accordingly, earnings per share is computed by dividing net income ...

  • Page 89
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Notes to the Condensed Parent Company Statements December 31, 2011, January 1, 2011 and January 2, 2010 (in thousands, except per share data) The Company may redeem some or all of the Notes at any time or from ...

  • Page 90
    ADVANCE AUTO PARTS, INC. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Period $ 5,636 4,816 4,056 Balance at End of Period $ 4,816 4,056 5,919 Allowance for doubtful accounts receivable: January 1, 2011 December 31, 2011 December 29, 2012 (1) Charges to ...

  • Page 91
    ... duly authorized. Dated: February 25, 2013 ADVANCE AUTO PARTS, INC. By: /s/ Michael A. Norona Michael A. Norona Executive Vice President and Chief Financial Officer Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on...

  • Page 92
    ... (as amended and restated effective as of January 1, 2010). Form of Advance Auto Parts, Inc. 2004 Long-Term Incentive Plan Stock Option Agreement. Amended and Restated Advance Auto Parts, Inc. Employee Stock Purchase Plan. Form 8-K Filed Exhibit Filing Date Herewith 1.1 4/29/2010 8-K 1.1 1/17...

  • Page 93
    ... Advance Auto Parts, Inc. and Darren R. Jackson. Form of Advance Auto Parts, Inc. 2011 SARs Award Agreement and Restricted Stock Award Agreement between Advance Auto Parts, Inc. and Darren R. Jackson. Credit Agreement dated as of May 27, 2011 among Advance Auto Parts, Inc. Advance Stores Company...

  • Page 94
    ... between Advance Auto Parts, Inc. and Darren R. Jackson. Form of Advance Auto Parts, Inc. SARs Award Agreement and Restricted Stock Unit Award Agreement under 2004 Long-Term Incentive Plan. Statement Regarding Computation of Ratio of Earnings to Fixed Charges. Subsidiaries of Advance Auto. Consent...

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  • Page 98
    ...Ticker Symbol AAP Listing New York Stock Exchange Independent Registered Public Accounting Firm: Deloitte & Touche LLP 901 East Byrd Street, Suite 820 Richmond, Virginia 23219 SEC FORM 10-K: Stockholders may obtain free of charge a copy of the Advance Auto Parts Annual Report on Form 10-K as filed...

  • Page 99
    ... Grocery Company Frances X. Frei (4) UPS Foundation Professor of Service Management, Senior Associate Dean of Faculty Planning and Recruiting, Harvard Business School J. Paul Raines (2*) Chief Executive Office , GameStop Corporation Gilbert T. Ray (1, 4*) Retired Partner, O'Melveny & Myers, LLP...

  • Page 100
    5008 Airport Road | Roanoke, Virginia 24012 | (877) Advance | (877) 238 - 2623 | AdvanceAutoParts.com