Advance Auto Parts 2014 Annual Report Download

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ONE TEAM DRIVEN
TO BE THE BEST
2014 Annual Report

Table of contents

  • Page 1
    ONE TE AM DRIVEN TO BE THE BEST 2014 Annual Report

  • Page 2
    ... DIFM (Commercial) Sales Mix (1) Sales and diluted earnings per share have been reported on a comparable basis to exclude the impact of the 53rd week of operations in 2014; General Parts International, Inc. ("General Parts") integration costs in 2014, amortization related to the acquired intangible...

  • Page 3
    ..., Advance achieved record sales, we outper formed our financial expectations set at the start of the year and generated strong free cash flow. 2015 and beyond. During the year, we fueled our growth by the addition of 143 new stores and 8 WORLDPAC branches. We continued to improve our supply chain...

  • Page 4
    ... responsibilities. Just as our operations are driven by our values, so is our commitment to serving our communities and improving the lives of those in need. In 2014, Advance, in conjunction with our Team Members, customers and vendor partners were privileged to give back over $6.7 million to...

  • Page 5
    ... file number 001-16797 _____ ADVANCE AUTO PARTS, INC. (Exact name of registrant as specified in its charter) _____ Delaware (State or other jurisdiction of incorporation or organization) 54-2049910 (I.R.S. Employer Identification No.) 5008 Airport Road Roanoke, VA (Address of Principal Executive...

  • Page 6
    ...fiscal quarter, the aggregate market value of the 72,625,896 shares of Common Stock held by non-affiliates of the registrant was $9,680,305,678, based on the last sales price of the Common Stock on July 11, 2014, as reported by the New York Stock Exchange. As of February 26, 2015, the registrant had...

  • Page 7
    ... 2. Item 3. Item 4. Part II. Item 5. Market for the Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities ...Selected Consolidated Financial Data...Management's Discussion and Analysis of Financial Condition and Results of Operations ...Quantitative and...

  • Page 8
    ... retaining key GPI employees; our ability to implement our business strategy; our ability to expand our business, including the location of available and suitable real estate for new store locations, the integration of any acquired businesses and the continued increase in supply chain capacity and...

  • Page 9
    ... 2015, the end of our 2014 fiscal year, or 2014, we operated 5,261 total stores and 111 distribution branches primarily under the trade names "Advance Auto Parts", "Autopart International", "Carquest" and "Worldpac". Our Internet address is www.AdvanceAutoParts.com. We make available free of charge...

  • Page 10
    ... its supply chain. We acquired the Carquest and Worldpac operations as part of our acquisition of GPI on January 2, 2014. We have plans to fully integrate the Carquest company-operated stores and overall operations into Advance Auto Parts over the next few years and to integrate the availability of...

  • Page 11
    ... of services in our stores free of charge to our customers including Battery and 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...

  • Page 12
    ... Louisiana Maine Maryland Massachusetts Michigan Minnesota Mississippi Missouri Montana Nebraska Nevada New Hampshire New Jersey New Mexico New York North Carolina North Dakota Location Ohio Oklahoma Oregon Pennsylvania Rhode Island South Carolina South Dakota Tennessee Texas Utah Vermont Virginia...

  • Page 13
    ...This tool allows customers to check real-time parts availability on over 100,000 parts, view images on over 90,000 parts, check prices, place orders, view invoices and self-service returns. Store Support Centers We are headquartered in Roanoke, VA and serve our Advance Auto Parts and Carquest stores...

  • Page 14
    ... chain. Worldpac will continue to operate four distribution centers to service its branches and provide cross-sourcing to our Advance Auto Parts and Carquest stores. In addition to the distribution centers acquired with GPI, we also opened our newest distribution center in Hartford, CT in late 2014...

  • Page 15
    ..., purchasing and distribution as compared to independent retailers and jobbers that are not part of a chain or associated with other retailers or jobbers. The principal methods of competition in our business include customer service, product offerings, availability, quality, price and store location...

  • Page 16
    ...highly competitive in many ways, including name recognition, location, price, quality, product availability and customer service. We compete in both the Commercial and DIY categories of the automotive aftermarket industry, primarily with: (i) national and regional retail automotive parts chains, (ii...

  • Page 17
    ... wholesalers, independently-owned and jobber stores, suppliers and employees, which could have an adverse effect on GPI's and our businesses, 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 18
    ...for new locations; the availability of financial resources, including access to capital at cost-effective interest rates; and our ability to manage the expansion and to hire, train and retain qualified Team Members. We are unsure whether we will be able to open and operate new stores on a timely or...

  • Page 19
    ...labor costs. If we fail or are unable to maintain competitive compensation, our customer service and execution levels could suffer by reason of a declining quality of our workforce, which could adversely affect our business, financial condition, results of operations and cash flows. The market price...

  • Page 20
    ... number of miles driven by our customers resulting in fewer parts failures and elective maintenance needed 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 21
    ... of our computer 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...

  • Page 22
    ...and principal corporate offices at the end of 2014: Square Footage (in thousands) Leased Owned 5,999 4,098 Location Distribution Centers Store Support Centers: Roanoke, Virginia Raleigh, North Carolina 50 locations in 32 states and 4 Canadian provinces Roanoke, Virginia Raleigh, North Carolina 270...

  • Page 23
    including damages resulting from any adverse verdicts, could have a material adverse effect on our operating results, financial position and cash flows in future periods. Item 4. Mine Safety Disclosures. Not applicable. 16

  • Page 24
    ...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 25
    ... is based solely on historical data and is not intended 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...

  • Page 26
    ... and Results of Operations", and our consolidated financial statements and the related notes included elsewhere in this report. Fiscal Year (1) 2014 2013 2012 2011 2010 (in thousands, except per share data, store data and ratios) Statement of Operations Data: Net sales Cost of sales Gross profit...

  • Page 27
    Fiscal Year (1) 2014 2013 2012 2011 2010 (in thousands, except per share data, store data and ratios) Selected Store Data and Performance Measures: Comparable store sales growth (9) Number of stores at beginning of year New stores (10) 2.0% 4,049 1,487 (164) 5,372 4,981 57.0% 43,338 (1.5%) 3,794 ...

  • Page 28
    ... to pick up merchandise ordered online at a conveniently located store or have their purchases shipped directly to them. Our Commercial customers consist primarily of delivery customers for whom we deliver products from our store locations to our Commercial customers' places of business, including...

  • Page 29
    ... to our Consolidated Financial Statements. On December 31, 2012, we acquired BWP, a privately-held company that supplied, marketed and distributed automotive aftermarket parts and products principally to Commercial customers. Prior to the acquisition, BWP operated or supplied 216 locations in the...

  • Page 30
    ...with the first year results of our multi-year GPI integration plan. Our plan is to fully integrate the Carquest owned stores and overall operations into Advance Auto Parts over the next few years and to integrate the availability of all of our product offerings throughout the entire chain. We expect...

  • Page 31
    ... below sets forth detail of our store development activity for the year ended January 3, 2015, including the consolidation of stores as part of our integration plans and the number of locations with Commercial delivery programs. During 2015, we anticipate adding approximately 100 to 120 new stores...

  • Page 32
    ... related expenses, Commercial delivery expenses, other store expenses and general and administrative expenses, including salaries and related benefits of store support center Team Members, share-based compensation expenses, store support center administrative office expenses, data processing...

  • Page 33
    ...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 a lower gross profit rate. The increase in our Commercial mix of sales was primarily due to the sales from the acquired BWP stores...

  • Page 34
    ... of GPI and $8.0 million, or 12 basis points, of expenses associated with our integration of BWP. Other primary drivers of the net increase in SG&A expenses, as a percentage of net sales, include costs associated with increased new store openings and higher incentive compensation, partially...

  • Page 35
    ... We believe that the presentation of financial results that exclude the 53rd week of operations, non-cash charges related to the acquired GPI intangibles and expenses associated with the integration of GPI and BWP provide meaningful supplemental information to both management and investors, which is...

  • Page 36
    ... of GPI and nine independent stores for $2,060.8 million, net of cash acquired. Our future capital requirements will depend in large part on the number and timing of new stores we open within a given year and the investments we make in existing stores, information technology, supply chain network...

  • Page 37
    ...and other assets related to the timing of payroll and payments to non-merchandise vendors. The benefit from accounts payable was expected as we were able to integrate terms for certain vendors serving both Carquest and Advance Auto Parts. For 2013, net cash provided by operating activities decreased...

  • Page 38
    ... or assets, pay distributions, repay loans, or guarantee indebtedness of its subsidiaries, and (iv) engage in sale-leaseback transactions; and (d) Advance to, among other things, change its holding company status. Advance and Advance Stores are required to comply with financial covenants with...

  • Page 39
    ... of our vendors finance payment obligations from us with designated third party financial institutions, which could result in increased working capital requirements. Conversely, if these credit ratings improve, our interest rate may decrease. Off-Balance-Sheet Arrangements We guarantee loans made...

  • Page 40
    .... Our open purchase orders related to merchandise inventory are based on current operational needs and are fulfilled by our vendors within a short period of time. We currently do not have minimum purchase commitments under our vendor supply agreements nor are our open purchase orders binding...

  • Page 41
    ... estimates were required in preparing these fair value estimates. Final decisions about product offerings, brand usage, store conversions and other elements of the integration plan could be different from current plans. Accordingly, critical accounting policies and estimates such as, but not limited...

  • Page 42
    ... from our acquisition of GPI in 2014, our self-insurance reserves have remained relatively flat over the last three years due to favorable claims development partially offset by the impact of our continued growth, including an increase in stores, Team Members and Commercial delivery vehicles. 35

  • Page 43
    ...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 as brakes and shocks. We...

  • Page 44
    ...credit risk from customers. Our concentration of credit risk 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...

  • Page 45
    ...over Financial Reporting Management's Report on Internal Control over Financial Reporting is set forth in Part IV, Item 15 of this annual report. Changes in Internal Control Over Financial Reporting We acquired GPI on January 2, 2014 and consider the transaction material to our results of operations...

  • Page 46
    ... proxy statement for the 2015 annual meeting of stockholders to be filed with the SEC within 120 days after the end of the fiscal year ended January 3, 2015 (the "2015 Proxy Statement"), which is incorporated herein by reference. Item 11. Executive Compensation. See the information set forth in the...

  • Page 47
    ... Financial Statements of Advance Auto Parts, Inc. and Subsidiaries for the years ended January 3, 2015, December 28, 2013 and December 29, 2012: Reports of Independent Registered Public Accounting Firm ...Consolidated Balance Sheets ...Consolidated Statements of Operations ...Consolidated...

  • Page 48
    ... for Financial Statements Management of Advance Auto Parts, Inc. and its subsidiaries (collectively the "Company") is responsible for the preparation, integrity, consistency and objectivity of the consolidated financial statements and supplemental financial information in this Annual Report on...

  • Page 49
    ... 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 January 3, 2015 and December 28, 2013, and the related consolidated statements of operations, comprehensive...

  • Page 50
    ... 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 January 3, 2015, based on...

  • Page 51
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS January 3, 2015 and December 28, 2013 (in thousands, except per share data) January 3, 2015 $ 104,671 579,825 3,936,955 119,589 4,741,040 1,432,030 615 995,426 748,125 45,122 7,962,358 $ December 28, 2013 1,112,...

  • Page 52
    ... AUTO PARTS, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS For the Years Ended January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) 2014 (53 weeks) Fiscal Years 2013 (52 weeks) 2012 (52 weeks) Net sales Cost of sales, including purchasing...

  • Page 53
    ... rights Tax benefit from share-based compensation Restricted stock and restricted stock units vested Share-based compensation Stock issued under employee stock purchase plan Repurchase of common stock Retirement of treasury stock Cash dividends ($0.24 per common share) Other Balance...

  • Page 54
    ...of acquired business Proceeds from sales of property and equipment Net cash used in investing activities Cash flows from financing activities: Increase (decrease) in bank overdrafts Issuance of senior unsecured notes Payment of debt related costs Borrowings under credit facilities Payments on credit...

  • Page 55
    ... For the Years Ended January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands) Fiscal Years 2014 (53 weeks) Supplemental cash flow information: Interest paid Income tax payments Non-cash transactions: Accrued purchases of property and equipment Retirement of common stock Changes in...

  • Page 56
    ... and imported cars and light trucks. 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 4,981 store locations with delivery service. In...

  • Page 57
    ..., including 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 collectibility and...

  • Page 58
    ... not covered by the manufacturer. Merchandise sold with warranty coverage by the Company primarily includes batteries but may also include other parts such as brakes and shocks. The Company estimates its warranty obligation at the time of sale based on the historical return experience, sales level...

  • Page 59
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) and cost of the respective product sold. To the extent vendors provide upfront allowances in lieu of accepting the ...

  • Page 60
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) Goodwill and Other Intangible Assets Goodwill is the excess of the purchase price over the fair value of ...

  • Page 61
    ...of operations at the time the facilities actually close. Closed store liabilities include the present value of the remaining lease obligations and management's estimate of future costs of insurance, property tax and common area maintenance expenses (reduced by the present value of estimated revenues...

  • Page 62
    ... merchandise inventories from our vendors to our distribution center, Vendor incentives, and Cash discounts on payments to vendors; SG&A Payroll and benefit costs for store and corporate Team Members; Occupancy costs of store and corporate facilities; Depreciation and amortization related to store...

  • Page 63
    ... continued growth and execution of merchandise strategies. The increase in cost of sales for 2014 was the result of an increase in supply chain costs. Product Cores The remaining inventories are comprised of product cores, the non-consumable portion of certain parts and batteries and the inventory...

  • Page 64
    ...Parts International, Inc. On January 2, 2014, the Company acquired GPI in an all-cash transaction. GPI, formerly a privately-held company, is a leading distributor and supplier of original equipment and aftermarket replacement products for Commercial markets operating under the Carquest and Worldpac...

  • Page 65
    ... thousands, except per share data) closing items) consisting of $1,307,991 in cash to GPI's shareholders, the repayment of $694,301 of GPI debt and $78,512 in make-whole fees and transaction-related expenses paid by the Company on GPI's behalf. The Company funded the purchase price with cash on-hand...

  • Page 66
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) The Company recorded an asset associated with favorable leases of $56,465 and a liability associated with ...

  • Page 67
    ... per share data) B.W.P. Distributors, Inc. On December 31, 2012, the 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...

  • Page 68
    ... per share data) Integration of Carquest stores The Company also approved plans in June 2014 to begin consolidating its Carquest stores acquired on January 2, 2014. As of January 3, 2015, 98 Carquest stores had been consolidated into existing Advance Auto Parts stores and 10 Carquest stores had...

  • Page 69
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) 6. Goodwill and Intangible Assets: Goodwill The following table reflects the carrying amount of goodwill and the ...

  • Page 70
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) Amortization expense was $56,499, $7,974 and $3,635 for 2014, 2013 and 2012, respectively. The gross carrying ...

  • Page 71
    ... of one year or less and primarily serve as collateral for the Company's self-insurance policies. The interest rate on borrowings under the revolving credit facility is based, at the Company's option, on adjusted LIBOR, plus a margin, or an alternate base rate, plus a margin. The current margin is...

  • Page 72
    ... AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) The 2013 Credit Agreement contains customary covenants restricting the ability of: (a) subsidiaries of Advance Stores...

  • Page 73
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) Future Payments As of January 3, 2015, the aggregate future annual maturities of long-term debt instruments are as ...

  • Page 74
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) The following table sets forth the Company's financial liabilities that were measured at fair value on a recurring ...

  • Page 75
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) 10. Property and Equipment: Property and equipment consists of the following: Original Useful Lives Land and land ...

  • Page 76
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) 12. Other Current and Long-term Liabilities: Other current liabilities consist of the following: January 3, 2015 ...

  • Page 77
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) The following table illustrates the computation of basic and diluted earnings per share for 2014, 2013 and 2012, ...

  • Page 78
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (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 79
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) Temporary differences which give rise to significant deferred income tax assets (liabilities) are as follows: ...

  • Page 80
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) penalties associated with tax contingencies unless considered probable of assessment. The Company does not expect ...

  • Page 81
    ... 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 82
    ... under the 2014 Plan based on management's current estimate of the probable vesting outcome for performance-based awards. The Company issues new shares of common stock upon exercise of stock options and SARs. Availability is determined net of forfeitures and shares withheld for payment of taxes due...

  • Page 83
    ... the Company's consolidated statements of operations and consolidated statements of cash flows, including the related income tax benefits, for 2014, 2013 and 2012 are as follows: 2014 Share-based compensation expense Deferred income tax benefit Proceeds from the issuance of common stock, primarily...

  • Page 84
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) Stock Appreciation Rights The following table summarizes the time-vested SARs activity for 2014: WeightedAverage ...

  • Page 85
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) Compensation expense for performance-based awards of $6,161, $1,141, and $3,267 in 2014, 2013 and 2012, respectively...

  • Page 86
    ... for in the Advance Auto Parts, Inc. Deferred Stock Unit Plan for Non-Employee Directors and Selected Executives, or the DSU Plan. Each DSU is equivalent to one share of common stock of the Company. The DSUs granted in 2014 fully vest after one year of board service and are distributed in common...

  • Page 87
    ... located store location or have their purchases shipped directly to them. The majority of the Company's online DIY sales are picked up at store locations. The following table summarizes financial information for each of the Company's product groups for the years ended January 3, 2015, December...

  • Page 88
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) Condensed Consolidating Balance Sheets As of January 3, 2015 Advance Auto Parts, Inc. Assets Current assets: Cash ...

  • Page 89
    ..., INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) Condensed Consolidating Statements of Operations For Fiscal 2014 Advance Auto Parts, Inc. $ - - - 14,504 (14,504) (52,946) 67,470 14...

  • Page 90
    ...INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) Condensed Consolidating Statements of Cash Flows For Fiscal 2014 Advance Auto Parts, Inc 9 9 NonGuarantor Subsidiaries $ 42,425 (3,552...

  • Page 91
    ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS January 3, 2015, December 28, 2013 and December 29, 2012 (in thousands, except per share data) 23. Quarterly Financial Data (unaudited): The following table summarizes quarterly financial data for Fiscal 2014 ...

  • Page 92
    ADVANCE AUTO PARTS, INC. SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (in thousands) Balance at Beginning of Period $ 4,056 5,919 13,295 Balance at End of Period $ (2) Allowance for doubtful accounts receivable: December 29, 2012 December 28, 2013 January 3, 2015 (1) Charges to Expenses $ 4,127...

  • Page 93
    ... duly authorized. ADVANCE AUTO PARTS, INC. By: /s/ Michael A. Norona Michael A. Norona Executive Vice President and Chief Financial Officer Dated: March 3, 2015 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf...

  • Page 94
    ... 4.500% Note due 2023 Seventh Supplemental Indenture, dated as of February 28, 2014, among Advance Auto Parts, Inc., each of the Subsidiary Guarantors from time to time party thereto and Wells Fargo Bank, National Association, as Trustee. Form of Indemnity Agreement between each of the directors of...

  • Page 95
    ...-Employee Directors and Selected 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...

  • Page 96
    .... Advance Stores Company, Incorporated, the other lenders from time to time party lenders party thereto and JPMorgan Chase Bank, N.A., as Administrative Agent for the lenders. 10.42 Supplement No. 1 to Guarantee Agreement. 10.43 First Amendment to the Advance Auto Parts, Inc. Employee Stock Purchase...

  • Page 97
    ... Unit Plan for Non-Employee Directors and Selected Executives (As Amended and Restated Effective as of January 1, 2008). Statement Regarding Computation of Ratio of Earnings to Fixed Charges. Subsidiaries of Advance Auto. Consent of Deloitte & Touche LLP. Certification of Chief Executive Officer...

  • Page 98
    ... FOR THE STOCKHOLDERS Corporate Office: 5008 Airport Road Roanoke, Virginia 24012 877-238 -2623 Internet Site: www.AdvanceAutoParts.com Annual Meeting: May 20, 2015 at 8:30 a.m. (EDT) Advance Auto Parts 5008 Airport Road Roanoke, VA 24012 Registrar and Transfer Agent: Computershare P .O. Box...

  • Page 99
    ... Support Michael A. Norona* Executive Vice President, Chief Financial Officer James T. Durkin Senior Vice President, Sales and Operations James A. Paisley Senior Vice President, Chief Information Officer Charles E. Tyson* Executive Vice President, Merchandising, Marketing and Supply Chain...

  • Page 100
    5008 Airport Road | Roanoke, Virginia 24012 | 877. ADVANCE | 877. 238 . 2623 | AdvanceAutoParts.com