Advance Auto Parts 2015 Annual Report Download - page 29

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16
inventory. Any such loss, if widespread or extended, could adversely affect the operation of our business and our results of
operations.
We may be affected by global climate change or by legal, regulatory, or market responses to such change.
The concern over climate change has led to legislative and regulatory initiatives aimed at reducing greenhouse gas
emissions (GHG). For example, proposals that would impose mandatory requirements on GHG continue to be considered by
policy makers in the United States and elsewhere. Laws enacted to reduce GHG that directly or indirectly affect our suppliers
(through an increase in their cost of production) or our business (through an impact on our inventory availability, cost of sales,
operations or demand for the products we sell) could adversely affect our business, financial condition, results of operations
and cash flows. New federal or state restrictions on emissions that may be imposed on vehicles could also adversely affect
annual miles driven or the demand for the products we sell and lead to changes in automotive technology. Changes in
automotive technology and compliance with any new or more stringent laws or regulations, or stricter interpretations of
existing laws, could require additional expenditures by us or our suppliers all of which could adversely impact the demand for
our products and our business, financial condition, results of operations or cash flows.
We anticipate changes to the composition of our Board of Directors and appointment of a chief executive officer in the
near term.
Consistent with the terms of our agreement with Starboard Value LP and certain of its affiliates, as reported in the Current
Report on Form 8-K filed by the Company on November 13, 2015, we anticipate that our Board of Directors will nominate
three new candidates to be elected to serve as independent Board members in the near term. We are also in the process of
identifying a permanent chief executive officer. Changes in Board composition and/or management may affect our corporate
governance, business models and strategic priorities, which could have an adverse effect on our business, financial condition,
results of operations and cash flows.
Item 1B. Unresolved Staff Comments.
None.