Advance Auto Parts 2015 Annual Report Download - page 92

ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
January 2, 2016, January 3, 2015 and December 28, 2013
(in thousands, except per share data)
F-38
Deferred Stock Units
The Company grants share-based awards annually to its Board of Directors in connection with its annual meeting of
stockholders. These awards are granted in the form of DSUs as provided 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. All DSUs granted in 2015, 2014 and 2013 are fully vested and will be distributed in common
shares after the director’s service on the Board ends. Additionally, the DSU Plan provides for the deferral of compensation
earned in the form of (i) an annual retainer for directors, and (ii) wages for certain highly compensated Team Members of the
Company. These DSUs are settled in common stock with the participants at a future date, or over a specified time period, as
elected by the participants in accordance with the DSU Plan.
The Company granted 9 DSUs in 2015. The weighted average fair value of DSUs granted during 2015, 2014 and 2013 was
$156.83, $122.80, and $83.63, respectively. The DSUs are awarded at a price equal to the market price of the Company’s
underlying stock on the date of the grant. For 2015, 2014 and 2013, respectively, the Company recognized $2,071, $862, and
$840 of share-based compensation expense for these DSU grants.
Employee Stock Purchase Plan
The Company also offers an employee stock purchase plan (ESPP). Under the ESPP, eligible Team Members may elect
salary deferrals to purchase the Company’s common stock at a discount of 10% from its fair market value on the date of
purchase. There are annual limitations on the amounts a Team Member may elect of either $25 per Team Member or 10% of
compensation, whichever is less. Team Members acquired 35, 39 and 23 shares under the ESPP in 2015, 2014 and 2013,
respectively. As of January 2, 2016, there were 1,065 shares available to be issued under the ESPP.
18. Accumulated Other Comprehensive Income (Loss):
Comprehensive income is computed as net earnings plus certain other items that are recorded directly to stockholders’
equity during the accounting period. In addition to net earnings, comprehensive income also includes unrealized gains and
losses on postretirement plan benefits, net of tax and foreign currency translation gains (losses). Accumulated other
comprehensive income (loss), net of tax, for 2015, 2014 and 2013 consisted of the following:
Unrealized Gain
(Loss)
on Postretirement
Plan
Currency
Translation
Accumulated
Other
Comprehensive
Income (Loss)
Balance, December 29, 2012 $ 2,667 $ — $ 2,667
Fiscal 2013 activity 1,016 — 1,016
Balance, December 28, 2013 $ 3,683 $ — $ 3,683
Fiscal 2014 activity (752)(15,268)(16,020)
Balance, January 3, 2015 $ 2,931 $ (15,268)$ (12,337)
Fiscal 2015 activity (445)(31,277)(31,722)
Balance, January 2, 2016 $ 2,486 $ (46,545)$ (44,059)
19. Segment and Related Information:
As of January 2, 2016, the Company's operations are comprised of 5,171 stores and 122 branches, which operate in the
United States, Canada, Puerto Rico and the U.S. Virgin Islands primarily under the trade names “Advance Auto Parts,”
"Carquest," "Autopart International" and "Worldpac." These locations offer a broad selection of brand name, OEM and
proprietary automotive replacement parts, accessories, and maintenance items primarily for domestic and imported cars and
light trucks. While the mix of Commercial and DIY customers varies among the four store brands, all of the locations serve
customers through similar distribution channels. The Company is implementing a multi-year plan to fully integrate the