Advance Auto Parts 2013 Annual Report Download - page 96

Download and view the complete annual report

Please find page 96 of the 2013 Advance Auto Parts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 108

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108

F-44
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)
1. Organization and Basis of Presentation
Advance Auto Parts, Inc. (“the Company”) is a holding company and the 100% shareholder of Advance Stores Company,
Incorporated and its subsidiaries (“Stores”). The Company conducts substantially all of its business operations through Stores.
The parent/subsidiary relationship between the Company and Stores includes certain related party transactions. These
transactions consist primarily of intercompany advances and interest on intercompany advances, dividends, capital
contributions and allocations of certain costs. Deferred income taxes have not been provided for financial reporting and tax
basis differences on the undistributed earnings of the subsidiaries.
These condensed financial statements have been prepared pursuant to the rules and regulations of the Securities and
Exchange Commission. Certain information and note disclosures normally included in annual financial statements prepared in
accordance with accounting principles generally accepted in the United States of America have been condensed or omitted
pursuant to those rules and regulations, although management believes that the disclosures made are adequate to make the
information presented not misleading. Under a “parent-only” presentation, the investment of the Company in Stores is
presented under the equity method of accounting. These parent-only financial statements should be read in conjunction with the
consolidated financial statements of the Company included in Item 15 “Exhibits, Financial Statement Schedules” of this Annual
Report on Form 10-K (“consolidated financial statements”).
2. Summary of Significant Accounting Policies
Accounting Period
The Company’s fiscal year ends on the Saturday nearest the end of December, which results in an extra week every several
years (the next 53 week fiscal year is 2014).
Use of Estimates
The preparation of financial statements in conformity with GAAP requires management to make estimates and
assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the
date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results
could differ materially from those estimates.
Cash and Cash Equivalents
Cash and cash equivalents consist of cash in banks and money market funds with original maturities of three months or
less.
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 for share-based
payments is the same as for the consolidated company which is described in the summary of significant accounting policies in
Note 2 of the consolidated financial statements.
Earnings per Share
The Company uses the two-class method to calculate earnings per share. Under the two-class method, unvested share-
based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are
considered participating securities and are included in the computation of earnings per share. Certain of the Company’s shares
granted to Team Members in the form of restricted stock and restricted stock units are considered participating securities.