Advance Auto Parts 2013 Annual Report Download - page 15

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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. All fiscal years presented include 52 weeks of operations (the next 53 week fiscal year is
2014).
References to the acquisition of GPI refer to our January 2, 2014 acquisition of General Parts International, Inc. The discussion
in this report relates to a period prior to our acquisition of GPI and, except as otherwise noted, does not give effect to the GPI
acquisition.
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. As of December 28, 2013, the end of our 2013 fiscal year,
or Fiscal 2013, we operated 4,049 total stores.
Subsequent to the end of Fiscal 2013, we acquired GPI on January 2, 2014. GPI, formerly a privately held company, is a
leading distributor and supplier of original equipment and aftermarket automotive 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. We believe the acquisition will allow us to expand our geographic presence, Commercial capabilities and overall scale
to better serve our customers.
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 Exchange Act 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
As of December 28, 2013, we operated 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 21, 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.