Advance Auto Parts 2015 Annual Report Download - page 16

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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
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.
Our Fiscal 2015 included 52 weeks of operations, while Fiscal 2014 included 53 weeks of operations. Our last 53-week year prior
to 2014 was in 2008.
Overview
We are a leading 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, was 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. The acquisition allowed us to expand our geographic presence, Commercial capabilities and overall
scale to better serve our customers. As of January 2, 2016, the end of our 2015 fiscal year, or 2015, we operated 5,171 total
stores and 122 branches primarily under the trade names "Advance Auto Parts", "Autopart International", "Carquest" and
"Worldpac".
Our Internet address is www.AdvanceAutoParts.com. The information on our website is not part of this Annual Report on
Form 10-K for our 2015 fiscal year. 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 2015 we operated as a single reportable segment comprised of our store and branch operations. A discussion of our
segment structure and disclosure of sales by product category is available in Note 19, 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-service 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 4,102 stores as of January 2, 2016 generally located in freestanding buildings with
a heavy focus on both Commercial and DIY customers. The average size of an Advance store is approximately 7,500
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 22,000 stock keeping units, or SKUs, generally