Advance Auto Parts 2013 Annual Report Download - page 44

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• a $13.4 million decrease in cash flow from the excess tax benefit from share-based compensation; and
• a $7.0 million decrease in net income.
Partially offsetting the decrease in operating cash flow was:
• a $56.8 million increase in cash flows provided by an increase in accrued expenses related to timing of the payment of
certain expenses.
Investing Activities
For Fiscal 2013, net cash used in investing activities increased by $89.1 million to $362.1 million. The increase in cash
used in investing 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 used in investing activities decreased by $17.0 million to $273.0 million. The decrease in cash
used was primarily driven by the decrease in cash used for business acquisitions.
Financing Activities
For Fiscal 2013, net cash provided by financing activities increased by $203.3 million to $331.2 million. This increase was
primarily a result of a net change in borrowings under our senior unsecured notes and credit facilities, partially offset by a
$53.7 million increase in the repurchase of common stock under our stock repurchase program.
For Fiscal 2012, net cash used in financing activities increased by $668.1 million to $127.9 million. This increase was
primarily a result of:
• a $604.0 million decrease in cash used for the repurchase of common stock under our stock repurchase program; and
• $299.9 million provided by the issuance of senior unsecured notes.
Partially offsetting these increases was a $230.0 million decrease in net borrowings on credit facilities.
Long-Term Debt
Bank Debt
On December 5, 2013, we entered into a new credit agreement which provides a $700.0 million unsecured term loan and a
$1.0 billion unsecured revolving credit facility (the “2013 Credit Agreement”) with Advance Stores, as Borrower, the lenders
party thereto, and JPMorgan Chase Bank, N.A., as administrative agent. This new revolving credit facility replaced the revolver
under our former Credit Agreement dated as of May 27, 2011 with Advance Stores, as Borrower, the lenders party thereto,
JPMorgan Chase Bank, N.A., as administrative agent (the “2011 Credit Agreement”). Upon execution of the 2013 Credit
Agreement, the lenders’ commitments under the 2011 Credit Agreement were terminated and the liabilities of us and our
subsidiaries with respect to their obligations under the 2011 Credit Agreement were discharged. The new revolving credit
facility also provides for the issuance of letters of credit with a sub-limit of $300.0 million and swingline loans in an amount
not to exceed $50.0 million. We may request, subject to agreement by one or more lenders, that the total revolving
commitment be increased by an amount not to exceed $250.0 million (up to a total commitment of $1.25 billion) during the
term of the credit agreement. Voluntary prepayments and voluntary reductions of the revolving balance are permitted in whole
or in part, at our option, in minimum principal amounts as specified in the revolving credit facility. The revolving credit facility
terminates in December 2018 and the term loan matures in January 2019.
As of December 28, 2013, we had not borrowed any amounts under the 2013 Credit Agreement but subsequently borrowed
$700.0 million under the term loan and $306.0 million under the revolver in conjunction with our acquisition of GPI on January
2, 2014. As of December 28, 2013, we had letters of credit outstanding of $87.3 million. The letters of credit generally have a
term of one year or less and primarily serve as collateral for our self-insurance policies. Our debt availability as of
December 28, 2013 was $545.4 million based on the maximum amount of additional borrowings allowed under our leverage
ratio.
The interest rate on borrowings under the revolving credit facility is based, at our option, on adjusted LIBOR, plus a
margin, or an alternate base rate, plus a margin. The current margin is 1.30% and 0.30% per annum for the adjusted LIBOR and