Advance Auto Parts 2014 Annual Report Download - page 9

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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. References to the acquisition of GPI refer to our January 2, 2014
acquisition of General Parts International, Inc. Our fiscal year consists of 52 or 53 weeks ending on the Saturday closest to December
31st of each year. Fiscal 2014 included 53 weeks of operations. Our last 53-week year prior to 2014 was in 2008.
Overview
We are the largest automotive aftermarket parts provider in North America, serving "do-it-for-me", or Commercial, and
"do-it-yourself", or DIY, customers as well as independently-owned operators. Our stores and branches offer a broad selection
of brand name, original equipment manufacturer ("OEM") and private label automotive replacement parts, accessories,
batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles and light and heavy duty trucks.
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 began targeting the sale of automotive parts and accessories to DIY customers. We began
our Commercial delivery program in 1996 and have steadily increased our sales to Commercial customers since 2000. We have
grown significantly as a result of comparable store sales growth, new store openings and strategic acquisitions. Our parent
company, Advance Auto Parts, Inc., a Delaware corporation, was incorporated in 2001 in conjunction with the acquisition of
Discount Auto Parts, Inc.
Our most recent strategic acquisition was on January 2, 2014 when we acquired GPI. 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 names. As of the acquisition date, GPI operated 1,233
Carquest stores and 103 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. As of January 3, 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 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 Securities and Exchange Commission ("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
During 2014 we operated as a single reportable segment comprised of our stores and distribution branch operations. A
discussion of our segment structure and disclosure of sales by product category 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.
Store Names
Through our integrated operating approach, we serve our Commercial and DIY customers through a variety of channels
ranging from traditional "brick and mortar" store locations to self-serving e-commerce sites. We believe we are better able to
meet our customers' needs by operating under several store names.
Advance Auto Parts - Consists of 3,888 stores as of January 3, 2015 generally located in freestanding buildings with
a heavy focus on both Commercial and DIY customers. The average size of an Advance store is approximately 7,600
square feet with the size of our typical new stores ranging from approximately 6,000 to 8,500 square feet. These stores
carry a wide variety of products serving aftermarket auto part needs for both domestic and import vehicles. Our
Advance Auto Parts stores carry a product offering of approximately 20,000 stock keeping units, or SKUs, generally
consisting of a custom mix of product based on each store's respective market. Supplementing the inventory on-hand