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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-39
Carquest company-operated stores and overall operations into Advance Auto Parts and to eventually integrate the availability of
all of the Company's product offerings throughout the entire chain.
The Company's Advance Auto Parts operations are currently comprised of five geographic areas which include the
operations of the stores operating under the Advance Auto Parts, Carquest and Autopart International trade names. Each of the
Advance Auto Parts geographic areas, in addition to Worldpac, are individually considered operating segments which are
aggregated into one reportable segment. Effective in the first quarter of 2015, the Company expanded from three geographic
areas, which previously comprised the Advance Auto Parts and Autopart International operations, to five areas, inclusive of the
Carquest operations, such that Carquest is no longer an operating segment. Included in the Company's overall store operations
are sales generated from its e-commerce platforms. The Company's e-commerce platforms, primarily consisting of its online
websites and Commercial ordering platforms, are part of its integrated operating approach of serving its Commercial and DIY
customers. The Company's online websites allow its DIY customers to pick up merchandise at a conveniently located store
location or have their purchases shipped directly to them. The majority of the Company's online DIY sales are picked up at
store locations. Through the Company's online ordering platforms, Commercial customers can conveniently place orders with a
designated store location for delivery to their places of business or pick-up.
The following table summarizes financial information for each of the Company’s product groups for the years ended
January 2, 2016, January 3, 2015 and December 28, 2013, respectively.
2015 2014 2013
Percentage of Sales, by Product Group
Parts and Batteries 69% 69% 67%
Accessories 13% 13% 14%
Chemicals 7% 8% 10%
Oil 8% 8% 9%
Other 3% 2% —%
Total 100% 100% 100%
20. Condensed Consolidating Financial Statements:
Certain 100% wholly-owned domestic subsidiaries of Advance, including its Material Subsidiaries (as defined in the 2013
Credit Agreement), serve as guarantors of Advance's senior unsecured notes ("Guarantor Subsidiaries"). The subsidiary
guarantees related to Advance's senior unsecured notes are full and unconditional and joint and several, and there are no
restrictions on the ability of Advance to obtain funds from its Guarantor Subsidiaries. Certain of Advance's wholly-owned
subsidiaries, including all of its foreign subsidiaries, do not serve as guarantors of Advance's senior unsecured notes ("Non-
Guarantor Subsidiaries"). The Non-Guarantor Subsidiaries do not qualify as minor as defined by SEC regulations. Accordingly,
the Company presents below the condensed consolidating financial information for the Guarantor Subsidiaries and Non-
Guarantor Subsidiaries. Investments in subsidiaries of the Company are required to be presented under the equity method, even
though all such subsidiaries meet the requirements to be consolidated under GAAP.
Set forth below are condensed consolidating financial statements presenting the financial position, results of operations,
and cash flows of (i) Advance, (ii) the Guarantor Subsidiaries, (iii) the Non-Guarantor Subsidiaries, and (iv) the eliminations
necessary to arrive at consolidated information for the Company. The statement of operations eliminations relate primarily to
the sale of inventory from a Non-Guarantor Subsidiary to a Guarantor Subsidiary. The balance sheet eliminations relate
primarily to the elimination of intercompany receivables and payables and subsidiary investment accounts.
The following tables present condensed consolidating balance sheets as of January 2, 2016 and January 3, 2015 and
condensed consolidating statements of operations, comprehensive income and cash flows for the year ended January 2, 2016
and January 3, 2015, and should be read in conjunction with the consolidated financial statements herein.