Advance Auto Parts 2015 Annual Report Download - page 52

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39
Foreign Currency Exchange Rate Risk
Our primary foreign currency exposure arises from our Canadian operations and the translation of Canadian dollar
denominated revenues, profits and net assets into U.S. dollars. During 2015, the translation of the operating results of our
Canadian subsidiaries did not significantly impact net income. We view our investments in the Canadian subsidiaries as long-
term, and any changes in our net assets in the Canadian subsidiaries relating to foreign currency exchange rates would be
reflected in the foreign currency translation component of Accumulated other comprehensive loss, unless the Canadian
subsidiaries are sold or otherwise disposed.
In addition, we are exposed to foreign currency exchange rate fluctuations for a portion of the Company's inventory
purchases which are denominated in foreign currencies and for intercompany balances. We believe that the price volatility of
these inventory purchases as it relates to foreign currency exchange rates is partially mitigated by our ability to adjust selling
prices. Losses from foreign currency transactions, which are included in Other income, net, were $7.4 million during 2015.
Item 8. Financial Statements and Supplementary Data.
See financial statements included in Item 15 “Exhibits, Financial Statement Schedules” of this annual report.
Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
None.
Item 9A. Controls and Procedures.
Disclosure Controls and Procedures
Disclosure controls and procedures are our controls and other procedures that are designed to ensure that information
required to be disclosed by us in our reports that we file or submit under the Securities Exchange Act of 1934 is recorded,
processed, summarized and reported within the time periods specified in the SEC's rules and forms. Disclosure controls and
procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by
us in our reports that we file or submit under the Securities Exchange Act of 1934 is accumulated and communicated to our
management, including our principal executive officer and principal financial officer, as appropriate to allow timely decisions
regarding required disclosure. Our management evaluated, with the participation of our principal executive officer and
principal financial officer, the effectiveness of our disclosure controls and procedures as of January 2, 2016 in accordance with
Rule 13a-15(b) under the Exchange Act. Based on this evaluation, our principal executive officer and our principal financial
officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures were
effective.
Management’ s Report on Internal Control 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
There were no changes in our internal control over financial reporting that occurred during the quarter ended January 2,
2016 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
Item 9B. Other Information.
None.