Advance Auto Parts 2013 Annual Report Download

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Advance Auto Parts | 2013 ANNUAL REPORT
TO BE
THE BEST

Table of contents

  • Page 1
    TO BE THE BEST Advance Auto Parts | 2013 ANNUAL REPORT

  • Page 2
    ... with in-store execution improvements." COMPANY HIGHLIGHTS Comparable Operating Results (1) 09 10 11 12 13 $5,413 $5,925 $6,170 $6,205 $6,494 09 10 11 12 13 3,420 3,563 3,662 3,794 4,049 09 10 11 12 13 $3.00 $3.95 $5.11 $5.22 $5.67 Sales (in millions) Number of Stores Earnings per Diluted Share

  • Page 3
    ... also a historic year as the Company took a major strategic step forward through the acquisition of General Parts International, Inc. positioning us for sustainable long-term growth and value creation as the largest parts provider in the automotive aftermarket industry. We closed on the transaction...

  • Page 4
    ... on execution and the team worked with intensity to improve our customer experience and deliver on our priorities. 1998 Advance Auto Parts buys Western Auto Supply Company/Parts America, which doubles the company's size. 2001 Acquired Discount Auto Parts, Inc., a regional auto parts chain; Advance...

  • Page 5
    ...continued driving improvements to our in-market availability and assortment through the support of 374 HUB stores and the positive impact from our daily delivery capabilities from our Remington, IN distribution center. Together, Advance Auto Parts and Autopart International opened 172 new stores in...

  • Page 6
    ... growing our Commercial business advances forward through the acquisition by adding 1,248 Carquest company - owned stores, 105 Worldpac branches and servicing approximately 1,400 Carquest independent customers. During 2013, we also made progress on the integration of the 124 acquired BWP stores. The...

  • Page 7
    "The newly combined business will provide a platform for continued growth of our Commercial business."

  • Page 8
    ...existing Autopart International business solidifies our position as market leader in import parts. The acquisition also advances our capabilities as an industry leader in e - commerce. The robust platform we will possess as a combined company will create an unparalleled commercial e-commerce engine...

  • Page 9
    ... commercial relationships. With over 130 years of combined company experience, Advance and General Parts have parallel histories of successful growth through acquisitions supported by outstanding Team Members. Culturally, our two companies share complementary operational strengths and values...

  • Page 10
    ... to deliver on the compelling financial benefits of the General Parts acquisition. Sincerely, Darren R. Jackson, Chief Executive Officer To Be The Best At Advance Auto Parts our mission is TO BE THE BEST service and parts supplier in our industry by working as ONE TEAM. Being the best means...

  • Page 11
    ... Executive 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...

  • Page 12
    ... business day of the registrant's most recently completed second fiscal quarter, the aggregate market value of the 72,442,669 shares of Common Stock held by non-affiliates of the registrant was $5,984,488,886, based on the last sales price of the Common Stock on July 12, 2013, as reported by the New...

  • Page 13
    ...11. Item 12. Item 13. Item 14. Part IV. Item 15. Exhibits, Financial Statement Schedules ...39 Directors, Executive Officers and Corporate Governance...Executive Compensation...Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ...Certain Relationships and...

  • Page 14
    ...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 15
    ...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...

  • Page 16
    ... 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...

  • Page 17
    ... services free of charge to our customers including Battery & wiper installation; Battery charging; Check engine light reading; Electrical system testing, including batteries, starters, alternators and sensors; "How-To" video clinics; Oil and battery recycling; and Loaner tool programs. Our stores...

  • Page 18
    ... 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 19
    ...in three primary locations Store support center in Roanoke, Virginia; Regional office in Minneapolis, Minnesota; and Global sourcing office in Taipei, Taiwan. Our Roanoke team is primarily responsible for the parts categories and our Minnesota team is primarily responsible for accessories, oil and...

  • Page 20
    ...6 Location Maine Maryland Massachusetts North Carolina New Hampshire New Jersey Number of Stores 4 11 31 5 8 18 Location New York Ohio Pennsylvania Rhode Island South Carolina Virginia Number of Stores 33 5 22 4 2 9 The following table sets forth information concerning increases in the total number...

  • Page 21
    ... 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...

  • Page 22
    ... 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 23
    ..., wholesalers, independently-owned and jobber stores, suppliers and employees, which could have an adverse effect on GPI's and our business, financial results and operations. In particular, GPI and Advance could lose customers or suppliers, and new customer or supplier contracts could be delayed or...

  • Page 24
    ...suitable locations for new store openings, or the continued increase in supply chain capacity and efficiency, which could adversely affect our business, financial condition, results of operations and cash flows. New Store Openings We have increased our store count significantly in the last ten years...

  • Page 25
    ... competition we face as well as our ability to properly merchandise, market and price the products desired by customers in these markets. Supply Chain Our store inventories are primarily replenished by shipments from our network of distribution centers, PDQ® warehouses and HUB stores. As we service...

  • Page 26
    ... number of miles driven by our customers resulting in fewer parts failures and elective maintenance required to be completed. Impact on Operating Costs Rising energy prices could directly impact our operating and product costs, including our merchandise distribution, commercial delivery, utility...

  • Page 27
    ... systems, website and other online offerings, a compromise of our data security systems or those of businesses we interact with could result in information related to our customers or business being obtained by unauthorized persons or other operational problems or interruptions. We develop and...

  • Page 28
    ... laws, could require additional expenditures by us or our suppliers. Our inability to respond to changes in automotive technology could adversely impact the demand for our products and our business, financial condition, results of operations or cash flows. Item 1B. Unresolved Staff Comments. None...

  • Page 29
    ...Florida Fort Myers, Florida Chicago, Illinois Rochester, New York Leicester, Massachusetts Washington, DC Houston, Texas Denver, Colorado West Deptford, New Jersey Durham, North Carolina Corporate/Administrative Offices: Roanoke, Virginia Norton, Massachusetts Minneapolis, Minnesota (1) (2) Opening...

  • Page 30
    ... 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 31
    ...Issuer Purchases of Equity Securities. 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...

  • Page 32
    ... 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 January 3, 2009 $ 100.00 100.00 100.00 January 2, 2010 $ 119...

  • Page 33
    ... along with "Management's Discussion and Analysis of Financial Condition and Results of Operations", and our consolidated financial statements and the related notes included elsewhere in this report. Fiscal Year (1) 2013 2012 2011 2010 2009 (in thousands, except per share data, store data and ratios...

  • Page 34
    ...Performance Measures: Comparable store sales growth (9) Number of stores at beginning of 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) Sales per store (in 000s) (10...

  • Page 35
    ... 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. As of December 28, 2013, we operated 217 stores in the AI segment under the "Autopart International" trade...

  • Page 36
    ... in Commercial sales than our Advance stores. Our strategic priorities include Growing our Commercial business through improved delivery speed and reliability, increased customer retention, increased volume with national and regional accounts, and the integrations of BWP and GPI, respectively...

  • Page 37
    ... fiscal year, we acquired General Parts International, Inc. on January 2, 2014 for a purchase price of $2.08 billion. GPI, formerly a privately held company, is a leading distributor and supplier of original equipment and automotive aftermarket replacement products for commercial markets operating...

  • Page 38
    ... Operations Net Sales Net sales consist primarily of merchandise sales from our retail store locations to both our DIY and Commercial customers and sales from our e-commerce website. Our total sales growth is comprised of both comparable store sales and new store sales. We calculate comparable store...

  • Page 39
    ... salaries and related benefits of store support center Team Members, share-based compensation expenses, store support center administrative office expenses, data processing, professional expenses, selfinsurance costs, closed store expense, impairment charges and acquisition-related and integration...

  • Page 40
    ... to lower acquisition costs and a favorable product mix, and improvement in shrink partially offset by planned inefficiencies in supply chain costs associated with the ramp-up in shipments of inventory from our new distribution center and the impact from a higher mix of Commercial sales which have...

  • Page 41
    ... 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 Income Operating income...

  • Page 42
    ... 2013 included the acquisition of BWP for $186.1 million. Our future capital requirements will depend in large part on the number of and timing of 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 Fiscal...

  • Page 43
    ... new store development (leased and owned locations), investments in our existing stores and investments under our Superior Availability and Service Leadership strategies, including continued investments in our supply chain network and new systems. We anticipate opening between 120 to 140 AAP stores...

  • Page 44
    ... activities was primarily driven by cash used in the acquisition of BWP, partially offset by a reduction in investments in property and equipment as a result of less spending on existing stores, new store development, information technology, and investments in supply chain. For Fiscal 2012, net cash...

  • Page 45
    ..., to change our holding company status. Advance Stores is required to comply with financial covenants with respect to a maximum leverage ratio and a minimum coverage ratio. The 2013 Credit Agreement also provides for customary events of default, including non-payment defaults, covenant defaults and...

  • Page 46
    ... includes the long-term portion of deferred income 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...

  • Page 47
    ... to amounts owed and/or payments from vendors related to cooperative advertising allowances, volume rebates and other promotional considerations. Many of these incentives are under long-term agreements (terms in excess of one year), while others are negotiated on an annual basis or less (short...

  • Page 48
    ...our vendors. However, we have an obligation to provide customers free replacement of merchandise or merchandise 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...

  • Page 49
    ... management to make assumptions as a marketplace participant would and to apply judgment to estimate industry economic factors and the profitability of future business strategies of our company and our reporting units. These assumptions and estimates are a major component of the derived fair value...

  • Page 50
    ...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 51
    ...Board," "Information Concerning Our Executive Officers," "Audit Committee Report," and "Section 16(a) Beneficial Ownership Reporting Compliance" in our proxy statement for the 2014 annual meeting of stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended December...

  • Page 52
    ... Financial Statements of Advance Auto Parts, Inc. and Subsidiaries for the years ended December 28, 2013, December 29, 2012 and December 31, 2011: Reports of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets ...Consolidated Statements of Operations ...Consolidated...

  • Page 53
    ... registered public accounting firm's responsibility is to express an opinion as to whether such consolidated financial statements present fairly, in all material respects, the Company's financial position, results of operations and cash flows in accordance with GAAP. Management's Report on Internal...

  • Page 54
    REPORT 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 accompanying consolidated balance sheets of Advance Auto Parts, Inc. and subsidiaries (the "Company") as of December ...

  • Page 55
    ... 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 28...

  • Page 56
    ... 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 57
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) Fiscal Years 2012 $ 6,205,003 3,106,967 3,098,036 2,440,721 657,315 (33,841) 600 (33,241) 624,074 236,...

  • Page 58
    ...related to the exercise of stock appreciation rights Tax benefit from share-based compensation Issuance of restricted stock, net of forfeitures Amortization of restricted stock balance Share-based compensation Stock issued under employee stock purchase plan Treasury stock purchased Retirement...

  • Page 59
    ...sales of property and equipment Net cash used in investing activities Cash flows from financing activities: (Decrease) increase in bank overdrafts Decrease in financed vendor accounts payable Issuance of senior unsecured notes Payment of debt related costs Borrowings under credit facilities Payments...

  • Page 60
    ... 31, 2011 (in thousands) Fiscal Years 2013 Supplemental cash flow information: Interest paid Income tax payments Non-cash transactions: Accrued purchases of property and equipment Retirement of common stock Contingent consideration accrued on acquisitions Changes in other comprehensive income...

  • Page 61
    ... Commercial, customers. The Company offers delivery 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 3,485 store locations with delivery service. Autopart International...

  • Page 62
    ...allowances for new stores and warranties, volume purchase rebates and co-operative advertising. Amounts receivable from vendors also include amounts due to the Company for changeover merchandise and product returns. The Company regularly reviews vendor receivables for collectability and assesses the...

  • Page 63
    ... Company's vendors. However, the Company has an obligation to provide customers free replacement of certain merchandise or merchandise 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...

  • Page 64
    ...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 allowances. The Company estimates returns based on current sales levels and the Company's historical return...

  • Page 65
    ... 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 28, 2013. Earnings per Share The Company uses the two-class method to calculate...

  • Page 66
    ...fair value if acquired through a business combination. Expenditures for maintenance and repairs are charged directly to expense when incurred; major improvements are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the account balances, with...

  • Page 67
    ... centers to our retail store locations, and - From certain of our larger stores which stock a wider variety and greater supply of inventory ("HUB stores") and Parts Delivered Quickly warehouses ("PDQ®s") to our retail stores after the customer has special-ordered the merchandise. New Accounting...

  • Page 68
    ... non-consumable portion of certain parts and batteries, which are valued under the first-in, first-out ("FIFO") method. Product cores are included as part of the Company's merchandise costs and are either passed on to the customer or returned to the vendor. Because product cores are not subject to...

  • Page 69
    ... Company acquired B.W.P. Distributors, Inc. ("BWP") in an all-cash transaction. BWP, formerly a privately-held company, supplied, marketed and distributed automotive aftermarket parts and products principally to commercial customers. Prior to the acquisition, BWP operated or supplied 216 locations...

  • Page 70
    ...nature to those of Advance. For additional information regarding intangible assets acquired, see Note 5, Goodwill and Intangible Assets. All of the goodwill is expected to be deductible for income tax purposes. The Company completed its purchase accounting related to the BWP acquisition in the third...

  • Page 71
    ... with the sale of certain BWP customer relationships subsequent to the acquisition. In Fiscal 2012, the Company purchased the rights to certain software assets for $1,100 which will further support the Company's e-commerce offerings. The gross and net carrying amounts of acquired intangible assets...

  • Page 72
    ... FINANCIAL STATEMENTS December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) 6. Receivables, net: Receivables consist of the following: December 28, 2013 Trade Vendor Other Total receivables Less: Allowance for doubtful accounts Receivables, net 7. Long-term...

  • Page 73
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) As of December 28, 2013, the Company had not borrowed any amounts under the 2013 Credit Agreement but ...

  • Page 74
    ... subsidiaries. Also, Advance has no independent assets or operations, and the subsidiaries not guaranteeing the Notes and 2013 Credit Agreement are minor as defined by SEC regulations. Future Payments As of December 28, 2013, the aggregate future annual maturities of long-term debt instruments are...

  • Page 75
    ..., net Fair Value Measurements: The Company's financial assets and liabilities measured at fair value are grouped in three levels. The levels prioritize the inputs used to measure the fair value of these assets or liabilities. These levels are: • • Level 1 - Unadjusted quoted prices that are...

  • Page 76
    ..., accounts payable, accrued expenses and current portion of long term debt approximate their fair values due to the relatively short term nature of these instruments. The fair value of the Company's senior unsecured notes was determined using Level 2 inputs based on quoted market prices and...

  • Page 77
    ... on the straight-line method over three to five years. 11. Accrued Expenses: Accrued expenses consist of the following: December 28, 2013 Payroll and related benefits Warranty reserves Capital expenditures Self-insurance reserves Taxes payable Other Total accrued expenses $ 101,576 39,512 20,714 45...

  • Page 78
    ... taxes Self-insurance reserves Other Total long-term liabilities 13. Stock Repurchase Program: $ 91,957 52,971 86,188 231,116 $ December 29, 2012 100,235 49,224 89,562 239,021 $ $ The Company's stock repurchase program allows it to repurchase its common stock on the open market or in privately...

  • Page 79
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) The following table illustrates the computation of basic and diluted earnings per share for Fiscal 2013, 2012 and ...

  • Page 80
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 28, 2013, December 29, 2012 and December 31, 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 81
    ..., net Total current deferred income tax assets (liabilities) Long-term deferred income tax assets (liabilities): Property and equipment Share-based compensation Accrued medical and workers compensation Net operating loss carryforwards Straight-line rent Other, net Total long-term deferred income tax...

  • Page 82
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) provided for any penalties associated with tax contingencies unless considered probable of assessment. The Company...

  • Page 83
    ... the Company's financial position, results of operations or liquidity. 18. 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...

  • Page 84
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) expenses and Other long-term liabilities in the accompanying consolidated balance sheets, was $2,305 and $5,223 as...

  • Page 85
    ... 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 86
    ..., except per share data) Time-Based Share Awards Stock Appreciation Rights and Stock Options The following table summarizes the time-vested stock option and time-vested SARs activity for the fiscal year ended December 28, 2013: WeightedAverage Remaining Contractual Term (in years) Number of Awards...

  • Page 87
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) Performance-Based Awards Performance-based awards granted in the following tables represent the performance ...

  • Page 88
    ...the LTIP. Availability also includes shares which became available for reissuance in connection with the exercise 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...

  • Page 89
    ... 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 aggregates the financial results...

  • Page 90
    ... per share data) The following table summarizes financial information for each of the Company's business segments for the years ended December 28, 2013, December 29, 2012 and December 31, 2011, respectively. 2013 Net sales AAP AI Eliminations (1) Total net sales Percentage of Sales, by Product Group...

  • Page 91
    ... and aftermarket replacement products for commercial markets operating under the Carquest and Worldpac brands. As of the acquisition date, GPI operated 1,248 Carquest stores and 105 Worldpac branches located in 45 states and Canada and serviced approximately 1,400 independently-owned Carquest stores...

  • Page 92
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) On February 10, 2014, the Company granted share-based compensation awards with a total grant date fair value of ...

  • Page 93
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Condensed Parent Company Balance Sheets December 28, 2013 and December 29, 2012 (in thousands, except per share data) December 28, 2013 Assets Cash and cash equivalents Other current assets Other assets, net ...

  • Page 94
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Condensed Parent Company Statements of Operations For the Years Ended December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) Fiscal Years 2012 18,447 $ 19,062 615 1,048 (...

  • Page 95
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Condensed Parent Company Statements of Cash Flows For the Years Ended December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands) Fiscal Years 2012 $ 387,670 $ 2013 Cash flows from operating ...

  • Page 96
    ... 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 97
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Notes to the Condensed Parent Company Statements December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) Accordingly, earnings per share is computed by dividing net income...

  • Page 98
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Notes to the Condensed Parent Company Statements December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) 4. Long-Term Debt Senior Unsecured Notes The Company issued 4.50% ...

  • Page 99
    ADVANCE AUTO PARTS, INC. SCHEDULE I - CONDENSED FINANCIAL INFORMATION OF THE REGISTRANT Notes to the Condensed Parent Company Statements December 28, 2013, December 29, 2012 and December 31, 2011 (in thousands, except per share data) 5. Commitments and Contingencies The Company has indirect ...

  • Page 100
    ... not impact the Company's statement of operations for any year presented. Reserves assumed in the acquisition of B.W.P. Distributors, Inc. Note: Other valuation and qualifying accounts have not been reported in this schedule because they are either not applicable or because the information has been...

  • Page 101
    .... Dated: February 25, 2014 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 behalf of the...

  • Page 102
    ..., as Representatives of the several Underwriters listed in Schedule 1 thereto. 2.1 Agreement and Plan of Merger by and among Advance Auto Parts, Inc., Generator Purchase, Inc., General Parts International, Inc. and Shareholder Representative Services LLC (as the Shareholder Representative), Dated as...

  • Page 103
    ... Executives (as amended and restated effective as of January 1, 2010). 10.4 Form of Advance Auto Parts, Inc. 2004 Long-Term Incentive Plan Stock Option Agreement. 10.5 Amended and Restated Advance Auto Parts, Inc. Employee Stock Purchase Plan. 10.6 Advance Auto Parts, Inc. Deferred Compensation Plan...

  • Page 104
    ... No. 2 to Guarantee Agreement. 10.41 Third Amendment to Employment Agreement between Advance Auto Parts, Inc. and Michael A. Norona, effective June 4, 2013. 10.42 Credit Agreement, dated as of December 5, 2013, among Advance Auto Parts, Inc. Advance Stores Company, Incorporated, the lenders...

  • Page 105
    ... Advance Auto Parts, Inc. Employee Stock Purchase Plan (As amended and Restated Effective as of May 15, 2012) 10.47 Form of Advance Auto Parts, Inc. SARs Award Agreement and Restricted Stock Unit Award Agreement between Advance Auto Parts, Inc. and Darren R. Jackson. 10.48 Form of Advance Auto Parts...

  • Page 106
    ... may obtain free of charge a copy of the Advance Auto Parts Annual Report on Form 10-K as filed with the Securities and Exchange Commission by writing to the Investor Relations Department, P .O. Box 2710, Roanoke, Virginia 24001 or by accessing the Company's web site at www.AdvanceAutoParts...

  • Page 107
    ... of the Board Retired Chief Administrative and Financial Officer, H.E. Butt Grocery Company * Denotes Committee Chair Darren R. Jackson Chief Executive Officer, Advance Auto Parts, Inc. Carlos A. Saladrigas (1*) Chairman and CEO, Regis HR William S. Oglesby (3*) Senior Managing Director, The...

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