Advance Auto Parts 2012 Annual Report Download - page 9

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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 (the next 53 week fiscal year is 2014).
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. Our Commercial customers
consist primarily of delivery customers for whom we deliver product from our store locations to our Commercial customers’
places of business, including independent garages, service stations and auto dealers.
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. At December 29, 2012, the end of our 2012 fiscal year, or
Fiscal 2012, we operated 3,794 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, or AI. The AAP segment
is comprised of our store operations, which operate under the trade names “Advance Auto Parts” and “Advance Discount Auto
Parts.” The AI segment consists solely of the operations of Autopart International, Inc. which operates under the “Autopart
International” trade name.
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 20, 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 December 29, 2012, we operated 3,576 AAP stores throughout 39 states in the Northeastern, Mid-Atlantic, Southeastern
and Midwestern (inclusive of South Central) regions of the United States, Puerto Rico and the Virgin Islands. 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. Through our
integrated operating approach, we serve our DIY and Commercial customers from our store locations and online at
www.AdvanceAutoParts.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.