x
|
ANNUAL REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
OF 1934
|
o
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES
EXCHANGE ACT OF 1934
|
Delaware
(State
or other jurisdiction of
incorporation
or organization)
|
54-2049910
(I.R.S.
Employer
Identification No.)
|
5008
Airport Road
Roanoke,
Virginia
(Address
of Principal Executive Offices)
|
24012
(Zip
Code)
|
Title
of each class
Common
Stock
($0.0001
par
value)
|
Name
of each exchange on which registered
New
York
Stock
Exchange
|
Large accelerated filer x | Accelerated filer o | Non-accelerated filer o |
·
|
the implementation of our business strategies
and
goals;
|
· |
our
ability to expand our business;
|
· |
competitive
pricing and other competitive pressures;
|
· |
a
decrease in demand for our products;
|
· |
the
occurrence of natural disasters and/or extended periods of
unfavorable
weather;
|
· |
our
ability to obtain affordable insurance against the financial
impacts of
natural disasters;
|
· |
the
availability of suitable real estate locations;
|
· |
our
overall credit rating;
|
· |
deterioration
in general economic conditions;
|
· |
our
ability to attract and retain qualified team members;
|
· |
integration
of acquisitions;
|
· |
our
relationship with our vendors;
|
· |
our
involvement as a defendant in litigation or incurrence of judgments,
fines
or legal costs;
|
· |
adherence
to the restrictions and covenants imposed under our revolving
credit
facility;
|
· |
acts
of terrorism; and
|
· |
other
statements that are not of historical fact made throughout
this report,
including in the sections entitled “Business,” "Management's Discussion
and Analysis of Financial Condition and Results of Operations"
and "Risk
Factors."
|
Type
of Store
|
Description
|
SKU
Offering
|
Base
|
· Includes
base SKU offering
|
16,000
|
Hub
/ Undercar
|
· Provides
customized assortment of merchandise in a centralized market
location
specifically identified based on the demand within an individual
market
· Benefits
all our DIY and DIFM customer within the market
|
16,600
- 18,000 |
Local
Area Warehouse
(LAW)
|
· LAW
concept utilizes existing space in selected stores to ensure the
availability of a customized assortment in addition to hub
and undercar
assortments to other stores served by LAW
· Product
is available on a same day basis to stores served by
LAW
|
24,600
- 28,000 |
Automotive
filters
|
Starters
|
CV
shafts
|
Suspension
parts
|
Radiators
|
Alternators
|
Spark
splugs
|
Engines
|
Brake
pads
|
Batteries
|
Transmission
parts
|
Transmissions
|
Fan
belts
|
Shock
absorbers
|
Clutches
|
|
Radiator
hoses
|
Struts
|
Electronic
ignition components
|
Battery installation | “How-To” Project Kiosks | Electrical system testing |
Wiper installation | “How-To” Video Clinics | Oil and battery recycling |
Location
|
Number
of
Stores
|
Location
|
Number
of
Stores
|
Location
|
Number
of
Stores
|
|||||
Alabama
|
114
|
Maryland
|
72
|
Oklahoma
|
18
|
|||||
Arkansas
|
35
|
Massachusetts
|
46
|
Pennsylvania
|
153
|
|||||
California
|
1
|
Michigan
|
71
|
Puerto
Rico
|
34
|
|||||
Colorado
|
33
|
Minnesota
|
16
|
Rhode
Island
|
6
|
|||||
Connecticut
|
30
|
Mississippi
|
54
|
South
Carolina
|
119
|
|||||
Delaware
|
5
|
Missouri
|
39
|
South
Dakota
|
7
|
|||||
Florida
|
441
|
Nebraska
|
18
|
Tennessee
|
142
|
|||||
Georgia
|
213
|
New
Hampshire
|
9
|
Texas
|
125
|
|||||
Illinois
|
73
|
New
Mexico
|
1
|
Vermont
|
7
|
|||||
Iowa
|
26
|
New
Jersey
|
44
|
Virgin
Islands
|
2
|
|||||
Indiana
|
90
|
New
York
|
111
|
Virginia
|
163
|
|||||
Kansas
|
26
|
North
Carolina
|
213
|
West
Virginia
|
64
|
|||||
Kentucky
|
86
|
North
Dakota
|
4
|
Wisconsin
|
43
|
|||||
Louisiana
|
58
|
Ohio
|
170
|
Wyoming
|
2
|
|||||
Maine
|
11
|
|||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||||||
Beginning
Stores
|
2,810
|
2,652
|
2,539
|
2,435
|
2,484
|
|||||||||||||||
New
Stores
(1)
|
190
|
169
|
125
|
125
|
110
|
(3
|
)
|
|||||||||||||
Stores
Closed
|
(5
|
)
|
(11
|
)
|
(12
|
)
|
(21
|
)
|
(159
|
)
|
(4
|
)
|
||||||||
Ending
Stores
|
2,995
|
2,810
|
(2
|
)
|
2,652
|
2,539
|
2,435
|
(1) |
Does
not include stores that opened as relocations of previously existing
stores within the same general market area or substantial renovations
of
stores.
|
(2) |
Includes
2 and 7 stores not operating at December 30, 2006 and December
31, 2005,
respectively, primarily due to hurricane
damage.
|
(3) |
Includes
57 stores acquired during the third and fourth quarters of fiscal
2002 as
a result of our Trak Auto Parts
acquisition.
|
(4) |
Includes
133 stores closed as a result of our integration of the Discount
operations.
|
Location
|
Number
of
Stores
|
Location
|
Number
of
Stores
|
Location
|
Number
of
Stores
|
|||||
Connecticut
|
17
|
New
Hampshire
|
8
|
Rhode
Island
|
4
|
|||||
Maine
|
5
|
New
York
|
19
|
Vermont
|
1
|
|||||
Massachusetts
|
33
|
|||||||||
2006
|
2005
|
|||||||
Beginning
Stores
|
62
|
-
|
||||||
New
Stores
|
25
|
62
|
(1
|
)
|
||||
Stores
Closed
|
-
|
-
|
||||||
Ending
Stores
|
87
|
62
|
||||||
|
(1) |
Of
the 62 new stores in 2005, 61 stores were acquired in
September 2005 as a
result of our AI acquisition.
|
· |
increasing
number and age of vehicles in the United States, increasing
number of
miles driven annually, and increasing number of cars coming
off of
warranty, particularly previously leased vehicles;
|
· |
higher
cost of replacement parts as a result of technological changes
in recent
models of vehicles and increasing number of light trucks and
sport utility
vehicles that require more expensive parts, resulting in higher
average
sales per customer;
|
· |
continued
consolidation of automotive aftermarket
retailers;
|
· |
move
to higher priced premium parts, which offer enhanced features,
benefits
and/or warranties; and
|
· |
market
share growth opportunities for specialty retailers relative
to other
channels selling similar
merchandise.
|
· |
general
economic conditions and conditions in our local markets,
which could
reduce our sales;
|
· |
the
competitive environment in the automotive aftermarket parts
and
accessories retail sector that may force us to reduce prices
beyond our
normal control or increase promotional spending;
|
· |
changes
in the automotive aftermarket parts manufacturing industry,
such as
consolidation, which may disrupt or sever one or more
of our vendor
relationships;
|
· |
our
ability to anticipate and meet changes in consumer preferences
for
automotive products, accessories and services in a timely
manner;
and
|
· |
our
continued ability to hire and retain qualified personnel,
which depends in
part on the types of recruiting, training, compensation and
benefit
programs we adopt or
maintain.
|
· |
our
ability to manage the expansion and hire, train and
retain qualified sales
associates;
|
· |
the
availability of potential store locations in highly
visible,
well-trafficked areas; and
|
· |
the
negotiation of acceptable lease or purchase terms
for new
locations.
|
· |
the
difficulty of identifying appropriate strategic partners
or acquisition
candidates;
|
· |
the
difficulty of assimilating and integrating the operations
of the
respective entities;
|
· |
the
potential disruption to our ongoing business and diversion
of our
management's attention;
|
· |
the
inability to maintain uniform standards, controls, procedures
and
policies; and
|
· |
the
impairment of relationships with team members and customers
as a result of
changes in management.
|
· |
the
weather, as vehicle maintenance may be deferred during
periods of
unfavorable weather;
|
· |
the
economy, as during periods of good economic conditions,
more of our DIY
customers may pay others to repair and maintain their
cars instead of
working on their own cars. In periods of declining
economic conditions,
both DIY and DIFM customers may defer vehicle maintenance
or repair;
and
|
· |
the
decline of the average age of vehicles, miles driven
or number of cars on
the road may result in
a
|
reduction
in the demand for our product
offerings.
|
· |
incurring
or guaranteeing additional indebtedness;
|
· |
making
capital expenditures and other investments;
|
· |
incurring
liens on our assets and engaging in sale-leaseback
transactions;
|
· |
issuing
or selling capital stock of our subsidiaries;
|
· |
transferring
or selling assets currently held by us;
|
· |
engaging
in transactions with affiliates;
|
· |
entering
into any agreements that restrict dividends from our subsidiaries;
and
|
· |
engaging
in mergers or acquisitions.
|
Facility
|
Opening
Date
|
Area
Served
|
Size
(Sq.
ft.)(1)
|
Nature
of
Occupancy
|
|||||
Main
Distribution Centers:
|
|||||||||
Roanoke,
Virginia
|
|
1988
|
Mid-Atlantic
|
433,681
|
Leased
|
||||
Lehigh,
Pennsylvania
|
|
2004
|
Northeast
|
635,487
|
Owned
|
||||
Lakeland,
Florida
|
|
1982
|
Florida
|
552,796
|
Owned
|
||||
Gastonia,
North Carolina
|
|
1969
|
South
|
634,472
|
Owned
|
||||
Gallman,
Mississippi
|
|
2001
|
South
|
388,168
|
Owned
|
||||
Salina,
Kansas
|
|
1971
|
West,
Midwest
|
413,500
|
Owned
|
||||
Delaware,
Ohio
|
|
1972
|
Northeast
|
480,100
|
Owned
|
||||
Thomson,
Georgia
|
|
1999
|
Southeast
|
374,400
|
Owned
|
||||
Master
PDQ® Warehouse:
|
|||||||||
Andersonville,
Tennessee
|
|
1998
|
All
|
115,019
|
Leased
|
||||
PDQ®
Warehouses:
|
|||||||||
Youngwood,
Pennsylvania
|
|
1999
|
East
|
39,878
|
Leased
|
||||
Riverside,
Missouri
|
|
1999
|
West
|
43,912
|
Leased
|
||||
Guilderland
Center, New York
|
|
1999
|
Northeast
|
40,950
|
Leased
|
||||
Temple,
Texas
|
|
1999
|
Southwest
|
61,343
|
Leased
|
||||
Altamonte
Springs, Florida
|
|
1996
|
Central
Florida
|
10,000
|
Owned
|
||||
Jacksonville,
Florida
|
|
1997
|
Northern
Florida and Southern
|
12,712
|
Owned
|
||||
Georgia
|
|||||||||
Tampa,
Florida
|
|
1997
|
West
Central Florida
|
10,000
|
Owned
|
||||
Hialeah,
Florida
|
|
1997
|
South
Florida
|
12,500
|
Owned
|
||||
West
Palm Beach, Florida
|
|
1998
|
Southeast
Florida
|
13,300
|
Leased
|
||||
Mobile,
Alabama
|
|
1998
|
Alabama
and Mississippi
|
10,000
|
Owned
|
||||
Atlanta,
Georgia
|
|
1999
|
Georgia
and South Carolina
|
16,786
|
Leased
|
||||
Tallahassee,
Florida
|
|
1999
|
South
Georgia and Northwest
|
10,000
|
Owned
|
||||
Florida
|
|||||||||
Fort
Myers, Florida
|
|
1999
|
Southwest
Florida
|
14,330
|
Owned
|
||||
Corporate/Administrative
Offices:
|
|||||||||
Roanoke,
Virginia
|
|
1995
|
All
|
49,000
|
Leased
|
||||
Roanoke,
Virginia
|
|
2002
|
All
|
144,000
|
Leased
|
||||
AI
Properties:
|
|||||||||
Sharon,
Massachusetts
|
1974
|
AI
corporate office
|
20,000
|
Leased
|
|||||
Norton,
Massachusetts(2)
|
2006
|
AI
corporate office
|
30,000
|
Leased
|
|||||
Sharon,
Massachusetts
|
1974
|
New
England, New York - AI
|
102,644
|
Leased
|
|||||
Foxboro,
Massachusetts
|
2004
|
New
England, New York - AI
|
84,875
|
Leased
|
|||||
Norton,
Massachusetts(2)
|
|
2006
|
New
England, New York - AI
|
317,500
|
Leased
|
(1) |
Square
footage amounts exclude adjacent office
space.
|
(2) |
This
facility began servicing AI stores in January 2007. This facility
will
replace the two existing AI distribution centers. The AI corporate
offices
will relocate to office space within the Norton distribution center
in
2007.
|
Years
|
AAP
Stores
|
AI
Stores
|
Total
|
|||
2006-2007
|
25
|
8
|
33
|
|||
2008-2012
|
173
|
37
|
210
|
|||
2013-2017
|
602
|
28
|
630
|
|||
2018-2027
|
924
|
14
|
938
|
|||
2028-2037
|
554
|
-
|
554
|
|||
2038-2051
|
129
|
-
|
129
|
|||
2,407
|
87
|
2,494
|
||||
High
|
Low
|
||||||
Fiscal
Year Ended December 30, 2006
|
|||||||
Fourth
Quarter
|
$
|
38.58
|
$
|
34.01
|
|||
Third
Quarter
|
$
|
35.31
|
$
|
27.65
|
|||
Second
Quarter
|
$
|
42.30
|
$
|
28.40
|
|||
First
Quarter
|
$
|
45.50
|
$
|
38.35
|
|||
Fiscal
Year Ended December 31, 2005
|
|||||||
Fourth
Quarter
|
$
|
44.88
|
$
|
35.40
|
|||
Third
Quarter
|
$
|
47.73
|
$
|
37.45
|
|||
Second
Quarter
|
$
|
44.17
|
$
|
34.10
|
|||
First
Quarter
|
$
|
35.10
|
$
|
28.13
|
|||
Number
of shares to be
issued
upon exercise of outstanding options,
warrants,
and rights (1)
|
Weighted-average
exercise
price of
outstanding
options,
warrants,
and rights
|
Number
of securities
remaining
available
for
future issuance
under
equity
compensation
plans(1)(2)
|
||||||||
Equity
compensation plans
|
||||||||||
approved
by stockholders
|
7,269
|
$
|
29.31
|
4,565
|
||||||
Equity
compensation plans
|
||||||||||
not
approved by stockholders
|
-
|
-
|
-
|
|||||||
Total
|
7,269
|
$
|
29.31
|
4,565
|
(1) |
Number
of shares presented is in thousands.
|
(2) |
Excludes
shares reflected in the first
column.
|
Company
/ Index
|
Dec
29 2001
|
Dec
28 2002
|
Jan
3 2004
|
Jan
1 2005
|
Dec
31 2005
|
Dec
30 2006
|
|||||||||||||
ADVANCE
AUTO PARTS, INC.
|
$
|
100
|
$
|
104.44
|
$
|
173.05
|
$
|
185.67
|
$
|
277.11
|
$
|
228.22
|
|||||||
S&P
500 INDEX
|
$
|
100
|
$
|
76.65
|
$
|
98.83
|
$
|
109.92
|
$
|
115.32
|
$
|
133.53
|
|||||||
S&P
500 SPECIALTY RETAIL INDEX
|
$
|
100
|
$
|
64.84
|
$
|
94.06
|
$
|
107.82
|
$
|
110.90
|
$
|
118.26
|
Fiscal
Year (1)(2)
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(in
thousands, except per share data)
|
||||||||||||||||
Statement
of Operations Data:
|
||||||||||||||||
Net
sales
|
$
|
4,616,503
|
$
|
4,264,971
|
$
|
3,770,297
|
$
|
3,493,696
|
$
|
3,204,140
|
||||||
Cost
of sales
|
2,415,339
|
2,250,493
|
2,016,926
|
1,889,178
|
1,769,733
|
|||||||||||
Gross
profit
|
2,201,164
|
2,014,478
|
1,753,371
|
1,604,518
|
1,434,407
|
|||||||||||
Selling,
general and administrative expenses (3)
|
1,797,814
|
1,605,986
|
1,424,613
|
1,305,867
|
1,202,524
|
|||||||||||
Expenses
associated with merger related restructuring(4)
|
-
|
-
|
-
|
-
|
597
|
|||||||||||
Expenses
associated with merger and integration (5)
|
-
|
-
|
-
|
10,417
|
34,935
|
|||||||||||
Operating
income
|
403,350
|
408,492
|
328,758
|
288,234
|
196,351
|
|||||||||||
Interest
expense
|
(35,992
|
)
|
(32,384
|
)
|
(20,069
|
)
|
(37,576
|
)
|
(77,081
|
)
|
||||||
Gain
(loss) on extinguishment of debt
|
986
|
-
|
(3,230
|
)
|
(47,288
|
)
|
(16,822
|
)
|
||||||||
Expenses
associated with secondary offering
|
-
|
-
|
-
|
-
|
(1,733
|
)
|
||||||||||
Other
income, net
|
1,571
|
2,815
|
289
|
341
|
963
|
|||||||||||
Income
from continuing operations before
|
||||||||||||||||
income
taxes and (loss) income on
|
||||||||||||||||
discontinued
operations
|
369,915
|
378,923
|
305,748
|
203,711
|
101,678
|
|||||||||||
Income
tax expense
|
138,597
|
144,198
|
117,721
|
78,424
|
39,530
|
|||||||||||
Income
from continuing operations before
|
||||||||||||||||
(loss)
income on discontinued operations
|
231,318
|
234,725
|
188,027
|
125,287
|
62,148
|
|||||||||||
Discontinued
operations:
|
||||||||||||||||
(Loss)
income from operations of discontinued
|
||||||||||||||||
Wholesale
Distribution Network (including loss on
|
||||||||||||||||
disposal
of $2,693 in 2003)
|
-
|
-
|
(63
|
)
|
(572
|
)
|
4,691
|
|||||||||
(Benefit)
provision for income taxes
|
-
|
-
|
(24
|
)
|
(220
|
)
|
1,820
|
|||||||||
(Loss)
income on discontinued operations
|
-
|
-
|
(39
|
)
|
(352
|
)
|
2,871
|
|||||||||
Net
income
|
$
|
231,318
|
$
|
234,725
|
$
|
187,988
|
$
|
124,935
|
$
|
65,019
|
||||||
Per
Share Data (6):
|
||||||||||||||||
Income
from continuing operations before
|
||||||||||||||||
(loss)
income on discontinued operations
|
||||||||||||||||
per
basic share
|
$
|
2.18
|
$
|
2.17
|
$
|
1.70
|
$
|
1.15
|
$
|
0.59
|
||||||
Income
from continuing operations before
|
||||||||||||||||
(loss)
income on discontinued operations
|
||||||||||||||||
per
diluted share
|
$
|
2.16
|
$
|
2.13
|
$
|
1.66
|
$
|
1.12
|
$
|
0.57
|
||||||
Net
income per basic share
|
$
|
2.18
|
$
|
2.17
|
$
|
1.70
|
$
|
1.14
|
$
|
0.62
|
||||||
Net
income per diluted share
|
$
|
2.16
|
$
|
2.13
|
$
|
1.66
|
$
|
1.11
|
$
|
0.60
|
||||||
Cash
dividends declared per basic share
|
$
|
0.24
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||
Weighted
average basic shares outstanding
|
106,129
|
108,318
|
110,846
|
109,499
|
105,147
|
|||||||||||
Weighted
average diluted shares outstanding
|
107,124
|
109,987
|
113,222
|
112,115
|
108,564
|
|||||||||||
Cash
flows provided by (used in):
|
||||||||||||||||
Operating
activities
|
$
|
333,604
|
$
|
321,632
|
$
|
260,397
|
$
|
355,921
|
$
|
242,996
|
||||||
Investing
activities
|
(258,642
|
)
|
(302,780
|
)
|
(166,822
|
)
|
(85,474
|
)
|
(78,005
|
)
|
||||||
Financing
activities
|
(104,617
|
)
|
(34,390
|
)
|
(48,741
|
)
|
(272,845
|
)
|
(169,223
|
)
|
Fiscal
Year (1)(2)
|
||||||||||||||||
2006
|
2005
|
2004
|
2003
|
2002
|
||||||||||||
(in
thousands, except per share data and ratios)
|
||||||||||||||||
Balance
Sheet and Other Financial Data:
|
||||||||||||||||
Cash
and cash equivalents
|
$
|
11,128
|
$
|
40,783
|
$
|
56,321
|
$
|
11,487
|
$
|
13,885
|
||||||
Inventory
|
$
|
1,463,340
|
$
|
1,367,099
|
$
|
1,201,450
|
$
|
1,113,781
|
$
|
1,048,803
|
||||||
Inventory
turnover(7)
|
1.71
|
1.75
|
1.74
|
1.72
|
1.75
|
|||||||||||
Inventory
per store(8)
|
$
|
475
|
$
|
476
|
$
|
453
|
$
|
439
|
$
|
429
|
||||||
Accounts
payable to inventory ratio(9)
|
53.2%
|
|
54.8%
|
|
53.7%
|
|
51.0%
|
|
44.9%
|
|
||||||
Net
working capital(10)
|
$
|
498,553
|
$
|
406,476
|
$
|
416,302
|
$
|
372,509
|
$
|
462,896
|
||||||
Capital
expenditures
|
$
|
258,586
|
$
|
216,214
|
$
|
179,766
|
$
|
101,177
|
$
|
98,186
|
||||||
Total
assets
|
$
|
2,682,681
|
$
|
2,542,149
|
$
|
2,201,962
|
$
|
1,983,071
|
$
|
1,965,225
|
||||||
Total
debt
|
$
|
477,240
|
$
|
438,800
|
$
|
470,000
|
$
|
445,000
|
$
|
735,522
|
||||||
Total
net debt(11)
|
$
|
500,318
|
$
|
448,187
|
$
|
433,863
|
$
|
464,598
|
$
|
722,506
|
||||||
Total
stockholders' equity
|
$
|
1,030,854
|
$
|
919,771
|
$
|
722,315
|
$
|
631,244
|
$
|
468,356
|
||||||
Selected
Store Data:
|
||||||||||||||||
Comparable
store sales growth (12)
|
2.1%
|
|
8.7%
|
|
6.1%
|
|
3.1%
|
|
5.5%
|
|
||||||
Number
of stores at beginning of year
|
2,872
|
2,652
|
2,539
|
2,435
|
2,484
|
|||||||||||
New
stores
|
215
|
231
|
125
|
125
|
110
|
|||||||||||
Closed
stores(13)
|
(5
|
)
|
(11
|
)
|
(12
|
)
|
(21
|
)
|
(159
|
)
|
||||||
Number
of stores, end of period
|
3,082
|
2,872
|
2,652
|
2,539
|
2,435
|
|||||||||||
Relocated
stores
|
47
|
54
|
34
|
32
|
39
|
|||||||||||
Stores
with commercial delivery program, end of period
|
2,526
|
2,254
|
1,945
|
1,625
|
1,411
|
|||||||||||
Total
commercial sales, as a percentage of total sales
|
25.0%
|
|
21.8%
|
|
18.4%
|
|
15.8%
|
|
15.0%
|
|
||||||
Total
store square footage, end of period(14)
|
22,235
|
20,899
|
19,734
|
18,875
|
18,108
|
|||||||||||
Average
net sales per store(15)
|
$
|
1,552
|
$
|
1,551
|
$
|
1,453
|
$
|
1,379
|
$
|
1,303
|
||||||
Average
net sales per square foot (16)
|
$
|
209
|
$
|
208
|
$
|
195
|
$
|
186
|
$
|
174
|
(1) | Our fiscal year consists of 52 or 53 weeks ending on the Saturday nearest to December 31. All fiscal years presented are 52 weeks, with the exception of 2003, which consists of 53 weeks. |
(2) |
The
statement of operations data for each of the years presented
reflects the
operating results of the wholesale distribution segment as
discontinued
operations.
|
(3) | Selling, general and administrative expenses exclude certain charges disclosed separately and discussed in notes (4) and (5) below. |
(4) | Represents expenses related primarily to lease costs associated with 27 Advance Auto Parts stores identified to be closed at December 29, 2001 as a result of the Discount acquisition. |
(5) | Represents certain expenses related to, among other things, overlapping administrative functions and store conversions as a result of the Discount acquisition. |
(6) | Basic and diluted shares outstanding for each of the years presented gives effect to a 3-for-2 stock split effectuated by us in the form of a 50% stock dividend distributed on September 23, 2005 and a 2-for-1 stock split effectuated by us in the form of a 100% stock dividend distributed on January 2, 2004. |
(7) |
Inventory
turnover is calculated as cost of sales divided by the average
of
beginning and ending inventories. The fiscal 2003 cost of sales
excludes
the effect of the 53rd
week in the amount of $34.3 million.
|
(8) | Inventory per store is calculated as ending inventory divided by ending store count. For fiscal 2003, ending inventory used in this calculation excludes certain inventory related to the wholesale distribution segment. The wholesales distribution segment, which was discontinued in fiscal 2003, consisted of independently owned and operated dealer locations, for which the Company supplied merchandise inventory. |
(9) |
Accounts
payable to inventory ratio is calculated as ending accounts
payable
divided by ending inventory. Beginning in fiscal 2004, as a
result of our
new vendor financing program, we aggregate financed vendor
accounts
payable with accounts payable to calculate our accounts payable
to
inventory ratio.
|
(10) |
Net
working capital is calculated by subtracting current liabilities
from
current assets.
|
(11) |
Net
debt includes total debt and bank overdrafts, less cash and
cash
equivalents.
|
(12) | Comparable store sales is calculated based on the change in net sales starting once a store has been open for 13 complete accounting periods (each period represents four weeks). Relocations are included in comparable |
store
sales from the original date of opening. We do not include
net sales from
the 37 Western Auto retail stores in our comparable store calculation
as a
result of their unique product offerings, including automotive
service and
tires. We
also exclude the net sales from the AI stores from our comparable
store
sales.
In
2003, the comparable store sales calculation included sales
from our
53rd
week compared to our first week of operation in 2003 (the comparable
calendar week). In 2004, as a result of the 53rd
week in 2003, the comparable store sales calculation excluded
week one of
sales from 2003.
|
|
(13) |
Closed
stores in 2002 include 133 stores closed as part of the integration
of the
Discount operations.
|
(14) |
Total
store square footage excludes the square footage of the stores
in the AI
segment.
|
(15) |
Average
net sales per store is calculated as net sales divided by the
average of
beginning and ending number of stores for the respective period.
The
fiscal 2006 and 2005 calculation excludes the net sales and
stores from
the AI segment. The fiscal 2003 net sales exclude the effect
of the
53rd
week in the amount of $63.0 million.
|
(16) |
Average
net sales per square foot is calculated as net sales divided
by the
average of the beginning and ending total store square footage
for the
respective period. The fiscal 2006 and 2005 calculation excludes
the net
sales and square footage from the AI segment. The fiscal 2003
net sales
exclude the effect of the 53rd
week in the amount of $63.0
million.
|
AAP
|
||||||||||
Fiscal
Year
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Number
of stores at beginning of year
|
2,810
|
2,652
|
2,539
|
|||||||
New
stores
|
190
|
169
|
125
|
|||||||
Closed
stores
|
(5
|
)
|
(11
|
)
|
(12
|
)
|
||||
Number
of stores, end of period(a)
|
2,995
|
2,810
|
2,652
|
|||||||
Relocated
stores
|
47
|
54
|
34
|
|||||||
Stores
with commercial delivery programs
|
2,439
|
2,192
|
1,945
|
|||||||
AI
|
||||||||||
|
Fiscal
Year
|
|||||||||
2006
|
2005
|
|||||||||
Number
of stores at beginning of year
|
62
|
-
|
||||||||
New
stores(b)
|
25
|
62
|
||||||||
Closed
stores
|
-
|
-
|
||||||||
Number
of stores, end of period
|
87
|
62
|
||||||||
Relocated
stores
|
-
|
-
|
||||||||
Stores
with commercial delivery programs
|
87
|
62
|
(a) |
Includes
2 and 7 stores not operating at December 30, 2006 and December
31, 2005,
respectively, primarily due to hurricane
damage.
|
(b) |
Of
the 62 new stores in 2005, 61 stores were acquired in September
2005 as a
result of our AI acquisition.
|
· |
Improving
store execution with a focus on customer
service;
|
· |
Continued
execution of our category management program,
including direct
importing;
|
· |
Continued
implementation of our 2010 store remodeling program
at a more selective
pace now that more than 65% of our chain has
been
remodeled;
|
· |
Our
focus on making our supply chain more responsive
and improving our
in-stock position;
|
· |
Consistent
growth and execution of our commercial program, including
the optimization
of delivery vehicles;
|
· |
Our
focus on recruiting, training and retaining high-performing
team members,
especially those who are ASE certified and/or bilingual;
and
|
· |
Enhanced
merchandising and marketing
programs.
|
1. |
Raising
average sales per store;
|
2. |
Expanding
operating margin;
|
3. |
Increasing
free cash flow; and
|
4. |
Increasing
return on invested capital.
|
Fiscal
Year
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Total
net sales (in
thousands)
|
$
|
4,616,503
|
$
|
4,264,971
|
$
|
3,770,297
|
||||
Total
commercial net sales (in
thousands)
|
$
|
1,155,953
|
$
|
931,320
|
$
|
693,449
|
||||
Comparable
store net sales growth
|
2.1
|
%
|
8.7
|
%
|
6.1
|
%
|
||||
DIY
comparable store net sales growth
|
(0.3
|
)%
|
4.8
|
%
|
2.8
|
%
|
||||
DIFM
comparable store net sales growth
|
10.8
|
%
|
25.2
|
%
|
22.9
|
%
|
||||
Average
net sales per store (in
thousands)
|
$
|
1,552
|
$
|
1,551
|
$
|
1,453
|
||||
Inventory
per store (in
thousands)
|
$
|
475
|
$
|
476
|
$
|
453
|
||||
Selling,
general and administrative expenses
|
||||||||||
per
store (in
thousands)
|
$
|
583
|
$
|
559
|
$
|
537
|
||||
Inventory
turnover
|
1.71
|
1.75
|
1.74
|
|||||||
Gross
margin
|
47.7
|
%
|
47.2
|
%
|
46.5
|
%
|
||||
Operating
margin
|
8.7
|
%
|
9.6
|
%
|
8.7
|
%
|
||||
Note:
These metrics should be reviewed along with the footnotes
to the table
setting forth our selected store data in Item 6 “Selected Financial Data”
located elsewhere in this report. The footnotes contain
descriptions
regarding the calculation of these
metrics.
|
· |
We
opened our 3,000th
store;
|
· |
In
the AAP segment, we surpassed the $1 billion
mark in commercial
sales;
|
· |
We
completed the refinancing of our previous
secured credit facility to an
unsecured revolving credit facility;
and
|
· |
On
February 15, 2006, our Board of Directors
declared a quarterly cash
dividend, the first in our
history.
|
· |
Targeting
commercial customers with a hard parts
focus;
|
· |
Targeting
commercial customers who need access to a
wide selection of
inventory;
|
· |
Moving
inventory closer to our commercial customers
to ensure quicker
deliveries;
|
· |
Growing
our market share of the commercial market through internal
growth and
selected acquisitions;
|
· | Providing trained parts experts to assist commercial customers’ merchandise selections; |
· |
Shifting
commercial delivery vehicles or other commercial resources
to store
locations where they can be most productive; and
|
· |
Providing
credit solutions to our commercial customers through
our commercial credit
program.
|
Fiscal
Year Ended
|
||||||||||
December
30,
|
December
31,
|
January
1,
|
||||||||
2006
|
2005
|
2005
|
||||||||
Net
sales
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||
Cost
of sales
|
52.3
|
52.8
|
53.5
|
|||||||
Gross
profit
|
47.7
|
47.2
|
46.5
|
|||||||
Selling,
general and administrative expenses
|
39.0
|
37.6
|
37.8
|
|||||||
Operating
income
|
8.7
|
9.6
|
8.7
|
|||||||
Interest
expense
|
(0.8
|
)
|
(0.7
|
)
|
(0.5
|
)
|
||||
Loss
on extinguishment of debt
|
0.0
|
-
|
(0.1
|
)
|
||||||
Other
income, net
|
0.1
|
(0.0
|
)
|
0.0
|
||||||
Income
tax expense
|
3.0
|
3.4
|
3.1
|
|||||||
Income
from continuing operations before discontinued operations
|
5.0
|
5.5
|
5.0
|
|||||||
Discontinued
operations:
|
||||||||||
(Loss)
income from operations of discontinued wholesale
|
||||||||||
distribution
network
|
-
|
-
|
(0.0
|
)
|
||||||
(Benefit)
provision for income taxes
|
-
|
-
|
(0.0
|
)
|
||||||
(Loss)
income on discontinued operations
|
-
|
-
|
(0.0
|
)
|
||||||
Net
income
|
5.0
|
%
|
5.5
|
%
|
5.0
|
%
|
||||
· |
recording
share-based compensation expense of approximately
0.4% of net sales upon
the implementation of SFAS 123R on January
1,
2006;
|
· |
a
0.5%
increase in certain fixed costs as a percentage
of sales during the year,
including rent and depreciation, as a result
of low comparative sales
growth; and
|
· |
a
0.3% increase in expenses associated with
higher costs for insurance
programs, including workers’ compensation, auto liability and general
liability.
|
16-Weeks
Ended
4/23/2005
|
12-Weeks
Ended
7/16/2005
|
12-Weeks
Ended
10/8/2005
|
12-Weeks
Ended
12/31/2005
|
16-Weeks
Ended
4/22/2006
|
12-Weeks
Ended
7/15/2006
|
12-Weeks
Ended
10/7/2006
|
12-Weeks
Ended
12/30/2006
|
||||||||||||||||||
Net
sales
|
$
|
1,258,364
|
$
|
1,023,146
|
$
|
1,019,736
|
$
|
963,725
|
$
|
1,393,010
|
$
|
1,107,857
|
$
|
1,099,486
|
$
|
1,016,150
|
|||||||||
Gross
profit
|
600,931
|
482,050
|
481,415
|
450,082
|
665,168
|
527,359
|
530,206
|
478,431
|
|||||||||||||||||
Net
income
|
$
|
68,647
|
$
|
65,929
|
$
|
60,793
|
$
|
39,356
|
$
|
74,081
|
$
|
62,936
|
$
|
58,947
|
$
|
35,354
|
|||||||||
Net
income per share:
|
|||||||||||||||||||||||||
Basic(1)
|
$
|
0.64
|
$
|
0.61
|
$
|
0.56
|
$
|
0.36
|
$
|
0.69
|
$
|
0.60
|
$
|
0.56
|
$
|
0.34
|
|||||||||
Diluted(1)
|
$
|
0.63
|
$
|
0.60
|
$
|
0.55
|
$
|
0.36
|
$
|
0.68
|
$
|
0.59
|
$
|
0.56
|
$
|
0.33
|
|||||||||
(1) |
Amounts
reflect the effect of a three-for-two stock split of our
common stock
distributed on September 23,
2005.
|
Fiscal
Year
|
||||||||||
(in
millions)
|
2006
|
2005
|
2004
|
|||||||
Cash
flows from operating activities
|
$
|
333.6
|
$
|
321.6
|
$
|
260.4
|
||||
Cash
flows from investing activities
|
(258.6
|
)
|
(302.8
|
)
|
(166.8
|
)
|
||||
Cash
flows from financing activities
|
(104.6
|
)
|
(34.3
|
)
|
(48.8
|
)
|
||||
Net
(decrease) increase in cash and
|
||||||||||
cash
equivalents
|
$
|
(29.6
|
)
|
$
|
(15.5
|
)
|
$
|
44.8
|
||
· |
$15.2
million increase in earnings exclusive
of $18.7 million of incremental,
non-cash, share-based compensation expense
compared to the same period in
fiscal 2005;
|
· |
$19.5
million increase in depreciation and
amortization;
|
· |
$24.1
million decrease in cash inflows primarily
related to the sale of our
private label credit card portfolio
in fiscal
2005;
|
· |
$24.9
million reduction in cash outflows, net of accounts
payable, as a result
of reducing inventory growth rates in line with our
current sales
trend;
|
· |
$33.4
million increase in cash flows from other assets
related to the timing of
payments for normal operating expenses, primarily
our monthly
rent
|
· |
$17.5
million decrease in cash inflows relating to the
timing of accrued
operating expenses; and
|
· |
$30.3
million decrease in cash flows from tax benefits
related to exercise of
stock options.
|
· |
$61.8
million increase from higher net income
before the non-cash impact of
depreciation and amortization over fiscal
2004;
|
· |
$37.8
million increase in cash flow, primarily resulting from the reduction
in
trade receivables upon the sale of
our private label credit card
portfolio;
|
· |
$42.8
million decrease as a result of higher
inventory levels needed for our
Northeast distribution center and
expansion of the number of stores
which
carry an extended mix of
parts;
|
· |
$25.7
million increase in other assets primarily due to
timing in the payment of
our monthly rent;
|
· |
$15.9
million increase in accounts payable reflective
of the increase in
inventory discussed above; and
|
· |
$20.2
million increase in accrued expenses related
to the timing of payments for
normal operating
expenses.
|
· |
$111.8
million related to acquisitions
in 2005, of which $12.5 million
was paid
in
2006;
|
· |
increase
in capital expenditures of $42.4
million used primarily to accelerate
our
square footage growth through
adding new stores (including
ownership of
selected new stores) and remodeling
existing
stores.
|
· |
$99.3
million used to acquire AI
and Lappen Auto Supply, net
of cash acquired;
and
|
· |
capital
expenditures of $36.4 million
used primarily to accelerate
our square
footage growth through new
stores (including ownership
of selected new
stores), the acquisition
of certain leased stores
and an increase in store
relocations.
|
· |
$46.0
million cash outflow resulting from
the timing of bank
overdrafts;
|
· |
$54.3
million decrease in financed vendor
accounts
payable;
|
· |
$504.0
million cash inflow resulting from
an increase in net
borrowings;
|
· |
$433.8
million used for early extinguishment of debt
in fiscal
2006;
|
· |
$19.2
million paid in dividends in fiscal 2006;
|
· |
$36.0
million increase in cash used to repurchase
shares of our common stock
under our stock repurchase program;
|
· |
$15.1
million decrease in proceeds from the exercise
of stock options;
and
|
· |
$26.3
million increase resulting from the repayment of
secured borrowings in
2005.
|
· |
$40.9
million cash inflow resulting from
the timing of bank
overdrafts;
|
· |
$161.2
million cash outflow resulting
from a reduction in net
borrowings;
|
· |
$105.0
million used for early extinguishment
of debt in fiscal
2004;
|
· |
$44.8
million decrease in cash used to repurchase
shares of our common stock
under our stock repurchase program;
|
· |
$32.6
million decrease resulting from the repayment
of secured borrowings in
connection with the reduction of trade
receivables discussed above;
and
|
· |
$14.0
million in cash from the increase in financed
vendor accounts payable and
proceeds from the exercise of stock
options.
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
||||||||||||||||||
Contractual
Obligations
|
Total
|
2007
|
2008
|
2009
|
2010
|
2011
|
Thereafter
|
|||||||||||||||
(in
thousands)
|
||||||||||||||||||||||
Long-term
debt
|
$
|
477,240
|
$
|
67
|
$
|
75
|
$
|
71
|
$
|
73
|
$
|
476,869
|
$
|
85
|
||||||||
Interest
payments
|
$
|
122,530
|
$
|
27,536
|
$
|
27,052
|
$
|
27,010
|
$
|
27,281
|
$
|
13,651
|
$
|
-
|
||||||||
Letters
of credit
|
$
|
66,768
|
$
|
61,768
|
$
|
5,000
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Operating
leases(1)
|
$
|
2,018,132
|
$
|
249,905
|
$
|
222,693
|
$
|
205,128
|
$
|
185,473
|
$
|
162,829
|
$
|
992,104
|
||||||||
Purchase
obligations(2)
|
$
|
625
|
$
|
500
|
$
|
125
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
Other
long-term liabilities(3)
|
$
|
61,234
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
(1) |
We
lease certain store locations, distribution centers, office
space,
equipment and vehicles. Our property leases generally contain
renewal and
escalation clauses and other leases concessions. These provisions
are
considered in our calculation of our minimum lease payments
which are
recognized as expense on a straight-line basis over the applicable
lease
term. In accordance with SFAS No. 13, “Accounting for Leases,” as amended
by SFAS No. 29, “Determining Contingent Rental,” any lease payments that
are based upon an existing index or rate, are included in our
minimum
lease payment calculations.
|
(2) |
For
the purposes of this table, purchase obligations are defined
as agreements
that are enforceable and legally binding, a term of greater
than one year
and that specify all significant terms, including: fixed or
minimum
quantities to be purchased; fixed, minimum or variable price
provisions;
and the approximate timing of the transaction. Our open purchase
orders
are based on current inventory or operational needs and are
fulfilled by
our vendors within short periods of time. We currently do not
have minimum
purchase commitments under our vendor supply agreements nor
are our open
purchase orders for goods and services binding agreements.
Accordingly, we
have excluded open purchase orders from this table. The purchase
obligations consist of certain commitments for training and
development.
This agreement expires in March 2008.
|
(3) |
Primarily
includes employee benefits accruals and deferred income taxes
for which no
contractual payment schedule exists.
|
Fair
|
|||||||||||||||||||||||||
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
Fiscal
|
Market
|
||||||||||||||||||||
2007
|
2008
|
2009
|
2010
|
2011
|
Thereafter
|
Total
|
Liability
|
||||||||||||||||||
Long-term
debt:
|
(dollars
in thousands)
|
||||||||||||||||||||||||
Variable
rate
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
476,800
|
$
|
-
|
$
|
476,800
|
$
|
476,800
|
|||||||||
Weighted
average
|
|||||||||||||||||||||||||
interest
rate
|
5.8%
|
|
5.6%
|
|
5.6%
|
|
5.7%
|
|
5.8%
|
|
-
|
5.7%
|
|
-
|
|||||||||||
Interest
rate swap:
|
|||||||||||||||||||||||||
Variable
to fixed(1)
|
$
|
225,000
|
$
|
225,000
|
$
|
225,000
|
$
|
225,000
|
$
|
225,000
|
-
|
-
|
$
|
252
|
|||||||||||
Weighted
average pay rate
|
-
|
0.1%
|
|
0.1%
|
|
0.0%
|
|
-
|
-
|
0.0%
|
|
-
|
|||||||||||||
Weighted
average receive rate
|
0.1%
|
|
-
|
-
|
0.0%
|
|
0.1%
|
|
-
|
0.0%
|
|
-
|
(1) |
Amounts
presented may not be outstanding for
the entire
year.
|
|
|||
(a)
(1) Financial Statements.
|
|
||
Audited
Consolidated Financial Statements of Advance Auto Parts, Inc.
and
Subsidiaries for the years ended December 30, 2006, December 31, 2005
and January 1, 2005:
|
|||
F-1
|
|||
F-2
|
|||
F-5
|
|||
F-6
|
|||
F-7
|
|||
Consolidated Statements of Cash Flows |
F-8
|
||
Notes to Consolidated Financial Statements |
F-10
|
||
(2) Financial Statement Schedules |
|
||
Report of Independent Registered Public Accounting Firm |
F-36
|
||
Schedule I Condensed Financial Information of the Registrant |
F-37
|
||
Schedule II Valuation and Qualifying Accounts |
F-41
|
||
(3) Exhibits |
|
||
The Exhibit Index following the signatures for this report is incorporated herein by reference. |
/s/ Michael N. Coppola | /s/ Michael O. Moore | ||
Michael N. Coppola | Michael O. Moore | ||
Chairman,
President and Chief Executive Officer
|
Executive
Vice President, Chief Financial
Officer
|
December
30,
|
December
31,
|
||||||
Assets
|
2006
|
2005
|
|||||
Current
assets:
|
|||||||
Cash
and cash equivalents
|
$
|
11,128
|
$
|
40,783
|
|||
Receivables,
net
|
97,046
|
94,689
|
|||||
Inventories,
net
|
1,463,340
|
1,367,099
|
|||||
Other
current assets
|
40,459
|
45,369
|
|||||
Total
current assets
|
1,611,973
|
1,547,940
|
|||||
Property
and equipment, net of accumulated depreciation of
|
|||||||
$670,571
and $564,558
|
994,977
|
898,851
|
|||||
Assets
held for sale
|
1,548
|
8,198
|
|||||
Goodwill
|
33,718
|
67,094
|
|||||
Intangible
assets, net
|
27,926
|
-
|
|||||
Other
assets, net
|
12,539
|
20,066
|
|||||
$
|
2,682,681
|
$
|
2,542,149
|
||||
Liabilities
and Stockholders' Equity
|
|||||||
Current
liabilities:
|
|||||||
Bank
overdrafts
|
$
|
34,206
|
$
|
50,170
|
|||
Current
portion of long-term debt
|
67
|
32,760
|
|||||
Financed
vendor accounts payable
|
127,543
|
119,351
|
|||||
Accounts
payable
|
651,587
|
629,248
|
|||||
Accrued
expenses
|
252,975
|
265,437
|
|||||
Other
current liabilities
|
47,042
|
44,498
|
|||||
Total
current liabilities
|
1,113,420
|
1,141,464
|
|||||
Long-term
debt
|
477,173
|
406,040
|
|||||
Other
long-term liabilities
|
61,234
|
74,874
|
|||||
Commitments
and contingencies
|
|||||||
Stockholders'
equity:
|
|||||||
Preferred
stock, nonvoting, $0.0001 par value,
|
|||||||
10,000
shares authorized; no shares issued or outstanding
|
-
|
-
|
|||||
Common
stock, voting, $0.0001 par value, 200,000
|
|||||||
shares
authorized; 105,351 shares issued and outstanding
|
|||||||
in
2006 and 109,637 issued and 108,198 outstanding in 2005
|
11
|
11
|
|||||
Additional
paid-in capital
|
414,153
|
564,965
|
|||||
Treasury
stock, at cost, 1,439 shares in 2005
|
-
|
(55,668
|
)
|
||||
Accumulated
other comprehensive income
|
3,472
|
3,090
|
|||||
Retained
earnings
|
613,218
|
407,373
|
|||||
Total
stockholders' equity
|
1,030,854
|
919,771
|
|||||
$
|
2,682,681
|
$
|
2,542,149
|
Fiscal
Years Ended
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Net
sales
|
$
|
4,616,503
|
$
|
4,264,971
|
$
|
3,770,297
|
||||
Cost
of sales, including
purchasing and warehousing costs
|
2,415,339
|
2,250,493
|
2,016,926
|
|||||||
Gross
profit
|
2,201,164
|
2,014,478
|
1,753,371
|
|||||||
Selling,
general and administrative expenses
|
1,797,814
|
1,605,986
|
1,424,613
|
|||||||
Operating
income
|
403,350
|
408,492
|
328,758
|
|||||||
Other,
net:
|
||||||||||
Interest
expense
|
(35,992
|
)
|
(32,384
|
)
|
(20,069
|
)
|
||||
Gain
(loss) on extinguishment of debt
|
986
|
-
|
(3,230
|
)
|
||||||
Other
income, net
|
1,571
|
2,815
|
289
|
|||||||
Total
other, net
|
(33,435
|
)
|
(29,569
|
)
|
(23,010
|
)
|
||||
Income
from continuing operations before provision for
|
||||||||||
income
taxes and loss on discontinued operations
|
369,915
|
378,923
|
305,748
|
|||||||
Provision
for income taxes
|
138,597
|
144,198
|
117,721
|
|||||||
Income
from continuing operations before loss on
|
||||||||||
discontinued
operations
|
231,318
|
234,725
|
188,027
|
|||||||
Discontinued
operations:
|
||||||||||
Loss
from operations of discontinued Wholesale
|
||||||||||
Dealer
Network
|
-
|
-
|
(63
|
)
|
||||||
Benefit
for income taxes
|
-
|
-
|
(24
|
)
|
||||||
Loss
on discontinued operations
|
-
|
-
|
(39
|
)
|
||||||
Net
income
|
$
|
231,318
|
$
|
234,725
|
$
|
187,988
|
||||
Net
income per basic share from:
|
||||||||||
Income
from continuing operations before loss on
|
||||||||||
discontinued
operations
|
$
|
2.18
|
$
|
2.17
|
$
|
1.70
|
||||
Loss
on discontinued operations
|
-
|
-
|
-
|
|||||||
$
|
2.18
|
$
|
2.17
|
$
|
1.70
|
|||||
Net
income per diluted share from:
|
||||||||||
Income
from continuing operations before loss on
|
||||||||||
discontinued
operations
|
$
|
2.16
|
$
|
2.13
|
$
|
1.66
|
||||
Loss
on discontinued operations
|
-
|
-
|
-
|
|||||||
$
|
2.16
|
$
|
2.13
|
$
|
1.66
|
|||||
Average
common shares outstanding
|
106,129
|
108,318
|
110,846
|
|||||||
Dilutive
effect of stock options
|
995
|
1,669
|
2,376
|
|||||||
Average
common shares outstanding - assuming dilution
|
107,124
|
109,987
|
113,222
|
Accumulated
|
(Accumulated
|
||||||||||||||||||||||||||||||
Additional
|
Treasury
Stock,
|
Other
|
Deficit)
|
Total
|
|||||||||||||||||||||||||||
Preferred
Stock
|
Common
Stock
|
Paid-in
|
at
cost
|
Comprehensive
|
Retained
|
Stockholders'
|
|||||||||||||||||||||||||
Shares
|
Amount
|
Shares
|
Amount
|
Capital
|
Shares
|
Amount
|
Income
|
Earnings
|
Equity
|
||||||||||||||||||||||
Balance,
January 3, 2004
|
-
|
$
|
-
|
110,826
|
$
|
10
|
$
|
647,103
|
-
|
$
|
-
|
$
|
(529
|
)
|
$
|
(15,340
|
)
|
$
|
631,244
|
||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
187,988
|
187,988
|
|||||||||||||||||||||
Unrealized
gain on hedge arrangement
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
1,343
|
-
|
1,343
|
|||||||||||||||||||||
Comprehensive
income
|
189,331
|
||||||||||||||||||||||||||||||
Issuance
of shares upon the exercise of stock options
|
-
|
-
|
2,914
|
1
|
20,469
|
-
|
-
|
-
|
-
|
20,470
|
|||||||||||||||||||||
Tax
benefit related to exercise of stock options
|
-
|
-
|
-
|
-
|
23,749
|
-
|
-
|
-
|
-
|
23,749
|
|||||||||||||||||||||
Stock
issued as compensation under employee stock purchase plan
|
-
|
-
|
177
|
-
|
3,397
|
-
|
-
|
-
|
-
|
3,397
|
|||||||||||||||||||||
Treasury
stock purchased
|
-
|
-
|
-
|
-
|
-
|
5,550
|
(146,370
|
)
|
-
|
-
|
(146,370
|
)
|
|||||||||||||||||||
Other
|
-
|
-
|
-
|
-
|
494
|
-
|
-
|
-
|
-
|
494
|
|||||||||||||||||||||
Balance,
January 1, 2005
|
-
|
$
|
-
|
113,917
|
$
|
11
|
$
|
695,212
|
5,550
|
$
|
(146,370
|
)
|
$
|
814
|
$
|
172,648
|
$
|
722,315
|
|||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
234,725
|
234,725
|
|||||||||||||||||||||
Unrealized
gain on hedge arrangement
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
2,276
|
-
|
2,276
|
|||||||||||||||||||||
Comprehensive
income
|
237,001
|
||||||||||||||||||||||||||||||
Issuance
of shares upon the exercise of stock options
|
-
|
-
|
2,727
|
-
|
28,696
|
-
|
-
|
-
|
-
|
28,696
|
|||||||||||||||||||||
Tax
benefit related to exercise of stock options
|
-
|
-
|
-
|
-
|
30,300
|
-
|
-
|
-
|
-
|
30,300
|
|||||||||||||||||||||
Stock
issued as compensation under employee stock purchase plan
|
-
|
-
|
110
|
-
|
3,286
|
-
|
-
|
-
|
-
|
3,286
|
|||||||||||||||||||||
Treasury
stock purchased
|
-
|
-
|
-
|
-
|
-
|
3,011
|
(102,483
|
)
|
-
|
-
|
(102,483
|
)
|
|||||||||||||||||||
Treasury
stock retired
|
-
|
-
|
(7,122
|
)
|
-
|
(193,185
|
)
|
(7,122
|
)
|
193,185
|
-
|
-
|
-
|
||||||||||||||||||
Other
|
-
|
-
|
5
|
-
|
656
|
-
|
-
|
-
|
-
|
656
|
|||||||||||||||||||||
Balance,
December 31, 2005
|
-
|
$
|
-
|
109,637
|
$
|
11
|
$
|
564,965
|
1,439
|
$
|
(55,668
|
)
|
$
|
3,090
|
$
|
407,373
|
$
|
919,771
|
|||||||||||||
Net
income
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
231,318
|
231,318
|
|||||||||||||||||||||
Unrealized
loss on hedge arrangement, net of $12 tax
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(61
|
)
|
-
|
(61
|
)
|
|||||||||||||||||||
Adjustment
to adopt FASB Statement No. 158, net of $2,041 tax
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
3,316
|
-
|
3,316
|
|||||||||||||||||||||
Reclassification
of gain on hedge arrangements earnings, before tax
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(2,873
|
)
|
-
|
(2,873
|
)
|
|||||||||||||||||||
Comprehensive
income
|
231,700
|
||||||||||||||||||||||||||||||
Issuance
of shares upon the exercise of stock options
|
-
|
-
|
741
|
-
|
14,043
|
-
|
-
|
-
|
-
|
14,043
|
|||||||||||||||||||||
Excess
tax benefit from stock-based compensation
|
-
|
-
|
-
|
-
|
5,272
|
-
|
-
|
-
|
-
|
5,272
|
|||||||||||||||||||||
Share-based
compensation
|
-
|
-
|
-
|
-
|
19,052
|
-
|
-
|
-
|
-
|
19,052
|
|||||||||||||||||||||
Stock
issued as compensation under employee stock purchase plan
|
-
|
-
|
90
|
-
|
2,908
|
-
|
-
|
-
|
-
|
2,908
|
|||||||||||||||||||||
Treasury
stock purchased
|
-
|
-
|
-
|
-
|
-
|
3,678
|
(136,671
|
)
|
-
|
-
|
(136,671
|
)
|
|||||||||||||||||||
Treasury
stock retired
|
-
|
-
|
(5,117
|
)
|
-
|
(192,339
|
)
|
(5,117
|
)
|
192,339
|
-
|
-
|
-
|
||||||||||||||||||
Cash
dividends
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
(25,473
|
)
|
(25,473
|
)
|
|||||||||||||||||||
Other
|
-
|
-
|
-
|
-
|
252
|
-
|
-
|
-
|
-
|
252
|
|||||||||||||||||||||
Balance,
December 30, 2006
|
-
|
$
|
-
|
105,351
|
$
|
11
|
$
|
414,153
|
-
|
$
|
-
|
$
|
3,472
|
$
|
613,218
|
$
|
1,030,854
|
Fiscal
Years Ended
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Cash
flows from operating activities:
|
||||||||||
Net
income
|
$
|
231,318
|
$
|
234,725
|
$
|
187,988
|
||||
Adjustments
to reconcile net income to net cash provided by
|
||||||||||
operating
activities:
|
||||||||||
Depreciation
and amortization
|
139,423
|
119,938
|
104,877
|
|||||||
Amortization
of deferred debt issuance costs
|
534
|
620
|
1,082
|
|||||||
Share-based
compensation
|
19,052
|
363
|
494
|
|||||||
Loss
on disposal of property and equipment, net
|
2,103
|
503
|
447
|
|||||||
(Benefit)
provision for deferred income taxes
|
(6,562
|
)
|
2,790
|
6,508
|
||||||
Excess
tax benefit from share-based compensation
|
(5,272
|
)
|
-
|
-
|
||||||
Tax
benefit related to exercise of stock options
|
-
|
30,300
|
23,749
|
|||||||
Loss
on extinguishment of debt
|
1,887
|
-
|
3,230
|
|||||||
Net
decrease (increase) in:
|
||||||||||
Receivables,
net
|
(2,318
|
)
|
21,819
|
(15,945
|
)
|
|||||
Inventories,
net
|
(92,239
|
)
|
(130,426
|
)
|
(87,669
|
)
|
||||
Other
assets
|
9,412
|
(23,963
|
)
|
1,750
|
||||||
Net
increase (decrease) in:
|
||||||||||
Accounts
payable
|
22,339
|
35,610
|
19,673
|
|||||||
Accrued
expenses
|
15,264
|
32,805
|
12,581
|
|||||||
Other
liabilities
|
(1,337
|
)
|
(3,452
|
)
|
1,632
|
|||||
Net
cash provided by operating activities
|
333,604
|
321,632
|
260,397
|
|||||||
Cash
flows from investing activities:
|
||||||||||
Purchases
of property and equipment
|
(258,586
|
)
|
(216,214
|
)
|
(179,766
|
)
|
||||
Business
acquisitions, net of cash acquired
|
(12,500
|
)
|
(99,300
|
)
|
-
|
|||||
Proceeds
from sales of property and equipment
|
12,444
|
12,734
|
12,944
|
|||||||
Net
cash used in investing activities
|
(258,642
|
)
|
(302,780
|
)
|
(166,822
|
)
|
||||
Cash
flows from financing activities:
|
||||||||||
(Decrease)
increase in bank overdrafts
|
(15,964
|
)
|
29,986
|
(10,901
|
)
|
|||||
Increase
in financed vendor accounts payable
|
8,192
|
62,455
|
56,896
|
|||||||
Early
extinguishment of debt
|
(433,775
|
)
|
-
|
(105,000
|
)
|
|||||
Dividends
paid
|
(19,153
|
)
|
-
|
-
|
||||||
(Payments)
borrowings on note payable
|
(60
|
)
|
500
|
-
|
||||||
Borrowings
under credit facilities
|
678,075
|
1,500
|
256,500
|
|||||||
Payments
on credit facilities
|
(205,800
|
)
|
(33,200
|
)
|
(126,500
|
)
|
||||
Payment
of debt related costs
|
(1,070
|
)
|
-
|
(3,509
|
)
|
|||||
Proceeds
from the issuance of common stock, primarily exercise
|
||||||||||
of
stock options
|
17,203
|
32,275
|
23,867
|
|||||||
Excess
tax benefit from share-based compensation
|
5,272
|
-
|
-
|
|||||||
Repurchase
of common stock
|
(137,560
|
)
|
(101,594
|
)
|
(146,370
|
)
|
||||
Increase
(decrease) in borrowings secured by trade receivables
|
23
|
(26,312
|
)
|
6,276
|
||||||
Net
cash used in financing activities
|
(104,617
|
)
|
(34,390
|
)
|
(48,741
|
)
|
||||
Net
(decrease) increase in cash and cash equivalents
|
(29,655
|
)
|
(15,538
|
)
|
44,834
|
|||||
Cash
and cash equivalents,
beginning of period
|
40,783
|
56,321
|
11,487
|
|||||||
Cash
and cash equivalents,
end of period
|
$
|
11,128
|
$
|
40,783
|
$
|
56,321
|
||||
2006
|
2005
|
2004
|
||||||||
Supplemental
cash flow information:
|
|
|||||||||
Interest
paid
|
$
|
24,822
|
$
|
23,455
|
$
|
15,616
|
||||
Income
tax payments, net
|
130,131
|
115,408
|
86,051
|
|||||||
Non-cash
transactions:
|
||||||||||
Accrued
purchases of property and equipment
|
24,011
|
39,105
|
21,479
|
|||||||
Repurchases
of common stock not settled
|
-
|
889
|
-
|
|||||||
Retirement
of common stock
|
192,339
|
193,185
|
-
|
|||||||
Reclassification
of net gain on hedges into earnings
|
(2,873
|
)
|
-
|
-
|
||||||
Unrealized
(loss) gain on hedge arrangements
|
(61
|
)
|
2,276
|
1,343
|
||||||
Adjustment
to initially apply FASB Statement No. 158, net of tax
|
3,316
|
-
|
-
|
|||||||
Declared
cash dividend unpaid at December 30, 2006
|
6,320
|
-
|
-
|
|||||||
Contingent
payment accrued on acquisition
|
-
|
12,500
|
-
|
|||||||
Accounts
and note receivable upon disposal of property and
equipment
|
-
|
2,714
|
1,225
|
|||||||
Cost
of Sales
|
SG&A
|
||||
●
|
Total
cost of merchandise sold including:
|
●
|
Payroll
and benefit costs for retail and corporate team
|
||
●
|
Freight
expenses associated with moving
|
|
members,
including share-based compensation;
|
||
|
merchandise
inventories from our vendors to our
|
●
|
Occupancy
costs of retail and corporate facilities;
|
||
|
distribution
center;
|
●
|
Depreciation
related to retail and corporate assets;
|
||
|
●
|
Vendor
incentives;
|
●
|
Advertising;
|
|
|
●
|
Cash
discounts on payments to vendors;
|
●
|
Self-insurance
costs;
|
|
●
|
Inventory
shrinkage;
|
●
|
Professional
services; and
|
||
●
|
Warranty
costs;
|
●
|
Other
administrative costs, such as credit card service
|
||
●
|
Costs
associated with operating our distribution
|
fees,
supplies, travel and lodging.
|
|||
network,
including payroll and benefit costs, occupancy
|
|||||
costs
and depreciation; and
|
|||||
●
|
Freight
expenses associated with moving merchandise
|
||||
inventories
from our distribution center to our retail
|
|||||
stores.
|
December
30,
|
December
31,
|
January
1,
|
||||||||
2006
|
2005
|
2005
|
||||||||
Warranty
reserves, beginning
|
||||||||||
of
period
|
$
|
11,352
|
$
|
10,960
|
$
|
15,578
|
||||
Reserves
established
|
17,352
|
14,268
|
13,071
|
|||||||
Reserves
utilized(1)
|
(15,635
|
)
|
(13,876
|
)
|
(17,689
|
)
|
||||
Warranty
reserves, end of
|
||||||||||
period
|
$
|
13,069
|
$
|
11,352
|
$
|
10,960
|
(1) |
Reserves
at the beginning of fiscal 2004 included $1,656
of reserves established
for the transition of the discontinued operations
of the wholesale dealer
network. Substantially all these reserves were
utilized during fiscal
2004.
|
2005
|
2004
|
||||||
Net
income, as reported
|
$
|
234,725
|
$
|
187,988
|
|||
Add:
Total stock-based employee compensation
|
|||||||
expense
included in reported net income, net
|
|||||||
of
related tax effects
|
225
|
304
|
|||||
Deduct:
Total stock-based employee compensation
|
|||||||
expense
determined under fair value based method
|
|||||||
for
all awards, net of related tax effects
|
(9,622
|
)
|
(5,977
|
)
|
|||
Pro
forma net income
|
$
|
225,328
|
$
|
182,315
|
|||
Net
income per share:
|
|||||||
Basic,
as reported
|
$
|
2.17
|
$
|
1.70
|
|||
Basic,
pro forma
|
2.08
|
1.64
|
|||||
Diluted,
as reported
|
2.13
|
1.66
|
|||||
Diluted,
pro forma
|
2.04
|
1.61
|
|||||
· |
The
first swap fixed the Company’s LIBOR rate at 4.9675% on $75,000
of debt
for a term of 60 months, expiring
in October
2011.
|
· |
The
second swap fixed the Company’s LIBOR rate at 4.9680% on
$50,000 of debt
for a term of 60 months, expiring
in October
2011.
|
· |
The
third swap fixed the Company’s LIBOR rate at 4.9800% on
$50,000 of debt
for a term of 60 months, expiring
in October
2011.
|
· |
The
fourth swap fixed the Company’s LIBOR rate at 4.9650% on $50,000 of debt
for a term of 60 months, expiring in October
2011.
|
Unrealized
gain
(loss)
on hedge
arrangement
|
Adjustment
to
adopt
FASB
Statement
No. 158
|
Accumulated
Other
Comprehensive
Income
|
||||||||
Balance,
January 3, 2004
|
$
|
(529
|
)
|
$
|
-
|
$
|
(529
|
)
|
||
Fiscal
2004 activity
|
1,343
|
-
|
1,343
|
|||||||
Balance,
January 1, 2005
|
$
|
814
|
$
|
-
|
$
|
814
|
||||
Fiscal
2005 activity
|
2,276
|
-
|
2,276
|
|||||||
Balance,
December 31, 2005
|
$
|
3,090
|
$
|
-
|
$
|
3,090
|
||||
Fiscal
2006 activity
|
(2,934
|
)
|
3,316
|
382
|
||||||
Balance,
December 30, 2006
|
$
|
156
|
$
|
3,316
|
$
|
3,472
|
||||
· |
Significant
negative industry
trends;
|
· |
Significant
changes in
technology;
|
· |
Significant
underutilization of assets;
and
|
· |
Significant
changes in how assets are used or are planned
to be
used.
|
September
14,
|
||||
2005
|
||||
Cash
|
$
|
223
|
||
Receivables,
net
|
10,224
|
|||
Inventories
|
32,914
|
|||
Other
current assets
|
812
|
|||
Property
and equipment
|
5,332
|
|||
Goodwill
|
17,625
|
|||
Intangible
assets
|
29,000
|
|||
Other
assets
|
1,454
|
|||
Total
assets acquired
|
97,584
|
|||
Accounts
payable
|
(5,690
|
)
|
||
Current
liabilities
|
(4,062
|
)
|
||
Other
long-term liabilities
|
(206
|
)
|
||
Total
liabilities assumed
|
(9,958
|
)
|
||
Net
assets acquired
|
$
|
87,626
|
||
December
31, 2005
|
January
1,
2005
|
||||||
Net
sales
|
$
|
4,337,461
|
$
|
3,857,646
|
|||
Net
income
|
238,290
|
189,138
|
|||||
Earnings
per diluted share
|
$
|
2.17
|
$
|
1.67
|
|||
As
of December 30, 2006
|
||||||||||
Acquired
intangible assets
|
Gross
Carrying
|
Accumulated
|
Net
Book
|
|||||||
subject
to amortization:
|
Amount
|
Amortization
|
Value
|
|||||||
Customer
relationships
|
$
|
9,600
|
$
|
(1,181
|
)
|
$
|
8,419
|
|||
Other
|
885
|
(178
|
)
|
707
|
||||||
Total
|
$
|
10,485
|
$
|
(1,359
|
)
|
$
|
9,126
|
|||
Acquired
intangible assets
|
||||||||||
not
subject to amortization:
|
||||||||||
Trademark
and tradenames
|
$
|
18,800
|
$
|
-
|
$
|
18,800
|
||||
2007
|
1,087
|
||||
2008
|
1,087
|
||||
2009
|
1,087
|
||||
2010
|
1,059
|
||||
2011
|
967
|
||||
AAP
Segment
|
AI
Segment
|
Total
|
||||||||
Balance
at January 1, 2005
|
$
|
2,720
|
$
|
-
|
$
|
2,720
|
||||
Recognition
of goodwill associated with
|
||||||||||
acquisitions
|
13,934
|
50,440
|
64,374
|
|||||||
Balance
at December 31, 2005
|
$
|
16,654
|
$
|
50,440
|
$
|
67,094
|
||||
Reclassification
to intangible assets among
|
||||||||||
other
purchase accounting adjustments
|
(561
|
)
|
(32,815
|
)
|
(33,376
|
)
|
||||
Balance
at December 30, 2006
|
$
|
16,093
|
$
|
17,625
|
$
|
33,718
|
||||
December
31,
|
|||||||
2005
|
|||||||
Estimated
fixed costs
|
$
|
15,351
|
|||||
Insurance
recovery of fixed costs, net of deductibles
|
(6,518
|
)
|
|||||
Insurance
recovery for merchandise inventories settled
|
|||||||
during
the year, net of deductibles
|
(8,941
|
)
|
|||||
Net
expense
|
$
|
(108
|
)
|
(a
|
)
|
(a) |
Does
not include the earnings impact of sales
disruptions.
|
December
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Trade
|
$
|
13,149
|
$
|
13,733
|
|||
Vendor
|
73,724
|
63,161
|
|||||
Installment
|
2,336
|
5,622
|
|||||
Insurance
recovery
|
9,676
|
13,629
|
|||||
Other
|
2,801
|
3,230
|
|||||
Total
receivables
|
101,686
|
99,375
|
|||||
Less:
Allowance for doubtful accounts
|
(4,640
|
)
|
(4,686
|
)
|
|||
Receivables,
net
|
$
|
97,046
|
$
|
94,689
|
December
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Inventories
at FIFO, net
|
$
|
1,380,573
|
$
|
1,294,310
|
|||
Adjustments
to state inventories at LIFO
|
82,767
|
72,789
|
|||||
Inventories
at LIFO, net
|
$
|
1,463,340
|
$
|
1,367,099
|
|||
Original
Useful Lives
|
December
30,
2006
|
December
31,
2005
|
||||||||
Land
and land improvements
|
0
- 10 years
|
$
|
238,186
|
$
|
212,110
|
|||||
Buildings
|
40
years
|
328,997
|
295,699
|
|||||||
Building
and leasehold improvements
|
10
- 40 years
|
197,657
|
159,568
|
|||||||
Furniture,
fixtures and equipment
|
3
- 12 years
|
843,645
|
745,142
|
|||||||
Vehicles
|
2
- 10 years
|
24,682
|
35,339
|
|||||||
Construction
in progress
|
28,151
|
11,035
|
||||||||
Other
|
4,230
|
4,516
|
||||||||
1,665,548
|
1,463,409
|
|||||||||
Less
- Accumulated depreciation and amortization
|
(670,571
|
)
|
(564,558
|
)
|
||||||
Property
and equipment, net
|
$
|
994,977
|
$
|
898,851
|
||||||
December
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Payroll
and related benefits
|
$
|
48,477
|
$
|
58,553
|
|||
Warranty
|
13,069
|
11,352
|
|||||
Capital
expenditures
|
24,011
|
39,105
|
|||||
Self-insurance
reserves
|
58,755
|
39,840
|
|||||
Property
taxes
|
23,427
|
20,029
|
|||||
Other
|
85,236
|
96,558
|
|||||
Total
accrued expenses
|
$
|
252,975
|
$
|
265,437
|
|||
December
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Employee
benefits
|
$
|
10,330
|
$
|
17,253
|
|||
Deferred
income taxes
|
26,048
|
36,958
|
|||||
Other
|
24,856
|
20,663
|
|||||
Total
other long-term liabilities
|
$
|
61,234
|
$
|
74,874
|
|||
December
30, 2006
|
December
31, 2005
|
|||||||||
Senior
Debt:
|
||||||||||
Tranche
A, Senior Secured Term Loan at variable
interest
|
||||||||||
rates
(5.66% at December 31, 2005), redeemed October 2006
|
$
|
-
|
$
|
170,000
|
||||||
Tranche
B, Senior Secured Term Loan at variable interest
|
||||||||||
rates
(5.89% at December 31, 2005), redeemed October 2006
|
-
|
168,300
|
||||||||
Delayed
Draw, Senior Secured Term Loan at variable interest
|
||||||||||
rates
(5.91% at December 31, 2005), redeemed October 2006
|
-
|
100,000
|
||||||||
Revolving
facility at variable interest rates
|
||||||||||
(6.13%
and 5.66% at December 30, 2006 and December 31, 2005,
|
||||||||||
respectively)
due October 2011
|
476,800
|
-
|
||||||||
Other
|
440
|
500
|
||||||||
477,240
|
438,800
|
|||||||||
Less:
Current portion of long-term debt
|
(67
|
)
|
(32,760
|
)
|
||||||
Long-term
debt, excluding current portion
|
$
|
477,173
|
$
|
406,040
|
||||||
2007
|
$
|
67
|
||
2008
|
75
|
|||
2009
|
71
|
|||
2010
|
73
|
|||
2011
|
476,869
|
|||
Thereafter
|
85
|
|||
$
|
477,240
|
|||
Current
|
Deferred
|
Total
|
||||||||
2006-
|
||||||||||
Federal
|
$
|
126,726
|
$
|
(4,874
|
)
|
$
|
121,852
|
|||
State
|
18,433
|
(1,688
|
)
|
16,745
|
||||||
$
|
145,159
|
$
|
(6,562
|
)
|
$
|
138,597
|
||||
2005-
|
||||||||||
Federal
|
$
|
124,978
|
$
|
(1,343
|
)
|
$
|
123,635
|
|||
State
|
16,430
|
4,133
|
20,563
|
|||||||
$
|
141,408
|
$
|
2,790
|
$
|
144,198
|
|||||
2004-
|
||||||||||
Federal
|
$
|
102,171
|
$
|
1,318
|
$
|
103,489
|
||||
State
|
9,042
|
5,190
|
14,232
|
|||||||
$
|
111,213
|
$
|
6,508
|
$
|
117,721
|
|||||
2006
|
2005
|
2004
|
||||||||
Income
from continuing operations
|
||||||||||
at
statutory U.S. federal income tax rate (35%)
|
$
|
129,470
|
$
|
132,623
|
$
|
107,012
|
||||
State income taxes, net of federal | ||||||||||
income
tax benefit
|
10,884
|
13,366
|
9,251
|
|||||||
Non-deductible
expenses
|
1,155
|
(3
|
)
|
745
|
||||||
Valuation
allowance
|
70
|
75
|
236
|
|||||||
Other,
net
|
(2,982
|
)
|
(1,863
|
)
|
477
|
|||||
|
$
|
138,597
|
$
|
144,198
|
$
|
117,721
|
||||
December
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Deferred
income tax assets
|
$
|
52,873
|
$
|
42,167
|
|||
Valuation
allowance
|
(1,174
|
)
|
(1,104
|
)
|
|||
Deferred
income tax liabilities
|
(119,361
|
)
|
(113,150
|
)
|
|||
Net
deferred income tax liabilities
|
$
|
(67,662
|
)
|
$
|
(72,087
|
)
|
|
December
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Current
deferred income tax liabilities
|
|||||||
Inventory
differences
|
$
|
(79,071
|
)
|
$
|
(68,250
|
)
|
|
Accrued
medical and workers compensation
|
22,114
|
16,134
|
|||||
Accrued
expenses not currently deductible for tax
|
15,213
|
16,661
|
|||||
Net
operating loss carryforwards
|
130
|
326
|
|||||
Total
current deferred income tax assets (liabilities)
|
$
|
(41,614
|
)
|
$
|
(35,129
|
)
|
|
Long-term
deferred income tax liabilities
|
|||||||
Property
and equipment
|
(40,194
|
)
|
(44,900
|
)
|
|||
Postretirement
benefit obligation
|
4,423
|
6,649
|
|||||
Share-based
compensation
|
7,671
|
-
|
|||||
Net
operating loss carryforwards
|
1,622
|
1,253
|
|||||
Valuation
allowance
|
(1,174
|
)
|
(1,104
|
)
|
|||
Other,
net
|
1,604
|
1,144
|
|||||
Total
long-term deferred income tax assets (liabilities)
|
$
|
(26,048
|
)
|
$
|
(36,958
|
)
|
|
Total
|
||||
2007
|
$
|
249,905
|
||
2008
|
222,693
|
|||
2009
|
205,128
|
|||
2010
|
185,473
|
|||
2011
|
162,829
|
|||
Thereafter
|
992,104
|
|||
$
|
2,018,132
|
|||
2006
|
2005
|
2004
|
||||||||
Minimum
facility rentals
|
$
|
217,588
|
$
|
191,897
|
$
|
169,449
|
||||
Contingent
facility rentals
|
1,090
|
1,334
|
1,201
|
|||||||
Equipment
rentals
|
5,735
|
4,128
|
5,128
|
|||||||
Vehicle
rentals
|
13,554
|
11,316
|
6,007
|
|||||||
237,967
|
208,675
|
181,785
|
||||||||
Less:
Sub-lease income
|
(4,166
|
)
|
(3,665
|
)
|
(3,171
|
)
|
||||
$
|
233,801
|
$
|
205,010
|
$
|
178,614
|
|||||
2006
|
2005
|
||||||
Change
in benefit obligation:
|
|||||||
Benefit
obligation at beginning of the year
|
$
|
13,711
|
$
|
14,625
|
|||
Interest
cost
|
726
|
802
|
|||||
Benefits
paid
|
(794
|
)
|
(1,513
|
)
|
|||
Actuarial
gain
|
(3,126
|
)
|
(203
|
)
|
|||
Benefit
obligation at end of the year
|
10,517
|
13,711
|
|||||
Change
in plan assets:
|
|||||||
Fair
value of plan assets at beginning of the year
|
-
|
-
|
|||||
Employer
contributions
|
794
|
1,513
|
|||||
Participant
contributions
|
1,088
|
2,336
|
|||||
Benefits
paid
|
(1,882
|
)
|
(3,849
|
)
|
|||
Fair
value of plan assets at end of year
|
-
|
-
|
|||||
Funded
Status
|
10,517
|
13,711
|
|||||
Reconciliation
of funded status:
|
|||||||
Funded
status
|
(10,517
|
)
|
(13,711
|
)
|
|||
Unrecognized
prior service cost
|
-
|
(6,531
|
)
|
||||
Unrecognized
actuarial loss
|
-
|
3,929
|
|||||
Accrued
postretirement benefit cost
|
$
|
(10,517
|
)
|
$
|
(16,313
|
)
|
|
2006
|
2005
|
2004
|
||||||||
Service
cost
|
$
|
-
|
$
|
-
|
$
|
2
|
||||
Interest
cost
|
726
|
802
|
1,004
|
|||||||
Amortization
of the prior service cost
|
(581
|
)
|
(581
|
)
|
(436
|
)
|
||||
Amortization
of recognized net losses
|
210
|
239
|
250
|
|||||||
$
|
355
|
$
|
460
|
$
|
820
|
|||||
2006
|
2005
|
||||||
Postretirement
benefit obligation
|
5.50
|
%
|
5.50
|
%
|
|||
Net
periodic postretirement benefit cost
|
5.50
|
%
|
5.75
|
%
|
Amount
|
||||
2007
|
$
|
1,048
|
||
2008
|
1,100
|
|||
2009
|
1,155
|
|||
2010
|
1,138
|
|||
2011
|
1,140
|
|||
2012-2016
|
4,893
|
Before
Application of Statement 158
|
Adjustments
|
After
Application of Statement 158
|
||||||||
Accrued
expenses
|
$
|
251,955
|
$
|
1,020
|
$
|
252,975
|
||||
Other
long-term liabilities
|
65,570
|
(4,336
|
)
|
61,234
|
||||||
Accumulated
other comprehensive income
|
156
|
3,316
|
3,472
|
|||||||
Total
stockholders' equity
|
1,027,538
|
3,316
|
1,030,854
|
Number
of
Options
|
Weighted-
Average
Exercise
Price
|
Weighted-
Average
Remaining Contractual
Term
(in years)
|
Aggregate
Intrinsic Value
|
||||||||||
Fixed
Price Options
|
|||||||||||||
Outstanding
at beginning of year
|
6,192
|
$
|
24.46
|
||||||||||
Granted
|
2,116
|
40.38
|
|||||||||||
Exercised
|
(741
|
)
|
18.96
|
||||||||||
Forfeited
|
(298
|
)
|
32.97
|
||||||||||
Outstanding
at December 30, 2006
|
7,269
|
$
|
29.31
|
4.58
|
$
|
56,126
|
|||||||
Outstanding,
net of expected forfeitures
|
6,955
|
$
|
29.00
|
4.58
|
$
|
55,496
|
|||||||
Outstanding
and exercisable
|
3,341
|
$
|
21.21
|
3.49
|
$
|
48,249
|
|||||||
Black-Scholes
Option Valuation Assumptions (1)
|
2006
|
2005
|
2004
|
|||||||
Risk-free
interest rate (2)
|
4.6
|
%
|
3.7
|
%
|
3.3
|
%
|
||||
Expected
dividend yield (3)
|
0.6
|
%
|
-
|
-
|
||||||
Expected
stock price volatility (4)
|
28.0
|
%
|
33.2
|
%
|
34.3
|
%
|
||||
Expected
life of stock options (in months) (5)
|
44
|
48
|
48
|
(1) |
Forfeitures
are based on historical experience.
|
(2) |
The
risk-free interest rate is based on a U.S. Treasury constant
maturity
interest rate whose term is consistent with the expected life
of the
Company’s stock options.
|
(3) |
The
Company declared its first ever cash dividend beginning in
its first
quarter of 2006.
|
(4) |
Expected
volatility is based on the historical volatility of the Company’s common
stock for the period consistent with the expected life of the
Company’s
stock options.
|
(5) |
The
expected life of the Company’s stock options represents the estimated
period of time until exercise and is based on historical experience
of
such awards.
|
2006
|
AAP
|
AI
|
Eliminations
|
Totals
|
|||||||||
Net
sales
|
$
|
4,505,437
|
$
|
111,066
|
$
|
-
|
$
|
4,616,503
|
|||||
Income
before provision for income taxes
|
368,818
|
1,097
|
-
|
369,915
|
|||||||||
Provision
for income taxes
|
138,144
|
453
|
-
|
138,597
|
|||||||||
Segment
assets
|
2,565,986
|
116,695
|
-
|
2,682,681
|
|||||||||
Depreciation
and amortization
|
135,159
|
4,264
|
-
|
139,423
|
|||||||||
Capital
expenditures
|
251,024
|
7,562
|
-
|
258,586
|
|||||||||
2005
|
AAP
|
AI
|
Eliminations
|
Totals
|
|||||||||
Net
sales
|
$
|
4,234,667
|
$
|
30,304
|
$
|
-
|
$
|
4,264,971
|
|||||
Income
before provision for income taxes
|
377,205
|
1,718
|
-
|
378,923
|
|||||||||
Provision
for income taxes
|
143,514
|
684
|
-
|
144,198
|
|||||||||
Segment
assets
|
2,446,226
|
95,923
|
-
|
2,542,149
|
|||||||||
Depreciation
and amortization
|
119,184
|
754
|
-
|
119,938
|
|||||||||
Capital
expenditures
|
215,585
|
629
|
-
|
216,214
|
|||||||||
2006
|
First
|
Second
|
Third
|
Fourth
|
|||||||||
(16
weeks)
|
(12
weeks)
|
(12
weeks)
|
(12
weeks)
|
||||||||||
Net
sales
|
$
|
1,393,010
|
$
|
1,107,857
|
$
|
1,099,486
|
$
|
1,016,150
|
|||||
Gross
profit
|
665,168
|
527,359
|
530,206
|
478,431
|
|||||||||
Income
from continuing operations
|
74,081
|
62,936
|
58,947
|
35,354
|
|||||||||
Net
income
|
74,081
|
62,936
|
58,947
|
35,354
|
|||||||||
Basic
earning per share
|
0.69
|
0.60
|
0.56
|
0.34
|
|||||||||
Diluted
earnings per share
|
0.68
|
0.59
|
0.56
|
0.33
|
|||||||||
2005
|
First
|
Second
|
Third
|
Fourth
|
|||||||||
|
(16
weeks)
|
(12
weeks)
|
|
(12
weeks)
|
|
(12
weeks)
|
|
||||||
Net
sales
|
$
|
1,258,364
|
$
|
1,023,146
|
$
|
1,019,736
|
$
|
963,725
|
|||||
Gross
profit
|
600,931
|
482,050
|
481,415
|
450,082
|
|||||||||
Income
from continuing operations
|
68,647
|
65,929
|
60,793
|
39,356
|
|||||||||
Net
income
|
68,647
|
65,929
|
60,793
|
39,356
|
|||||||||
Basic
earnings per share
|
0.64
|
0.61
|
0.56
|
0.36
|
|||||||||
Diluted
earnings per share
|
0.63
|
0.60
|
0.55
|
0.36
|
|||||||||
December
30,
|
December
31,
|
||||||
2006
|
2005
|
||||||
Assets
|
|||||||
Cash
and cash equivalents
|
$
|
23
|
$
|
23
|
|||
Receivables,
net
|
-
|
295
|
|||||
Other
current assets
|
3
|
3
|
|||||
Investment
in subsidiary
|
1,417,907
|
1,162,060
|
|||||
Total
assets
|
$
|
1,417,933
|
$
|
1,162,381
|
|||
Liabilities
and stockholders' equity
|
|||||||
Accrued
expenses
|
$
|
57
|
$
|
57
|
|||
Dividends
payable
|
6,320
|
-
|
|||||
Intercompany
payable, net
|
380,702
|
242,553
|
|||||
Total
liabilities
|
387,079
|
242,610
|
|||||
Stockholders'
equity
|
|||||||
Preferred
stock, nonvoting, $0.0001 par value,
|
|||||||
10,000
shares authorized; no shares issued or outstanding
|
-
|
-
|
|||||
Common
stock, voting $0.0001 par value; 200,000
|
|||||||
shares
authorized; 105,351 shares issued and outstanding
|
|||||||
in
2006 and 109,637 issued 108,198 outstanding in 2005
|
11
|
11
|
|||||
Additional
paid-in capital
|
414,153
|
564,965
|
|||||
Treasury
stock, at cost, 1,439 shares in 2005
|
-
|
(55,668
|
)
|
||||
Accumulated
other comprehensive income
|
3,472
|
3,090
|
|||||
Retained
earnings
|
613,218
|
407,373
|
|||||
Total
stockholders' equity
|
1,030,854
|
919,771
|
|||||
Total
liabilities and stockholders' equity
|
$
|
1,417,933
|
$
|
1,162,381
|
|||
For
the Years Ended
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Selling,
general and administrative expenses
|
$
|
165
|
$
|
165
|
$
|
166
|
||||
Loss
before (benefit) provision for income taxes
|
(165
|
)
|
(165
|
)
|
(166
|
)
|
||||
Income
tax (benefit) provision
|
(58
|
)
|
(59
|
)
|
635
|
|||||
Loss
before equity in earnings of subsidiaries
|
(107
|
)
|
(106
|
)
|
(801
|
)
|
||||
Equity
in earnings of subsidiaries
|
231,425
|
234,831
|
188,789
|
|||||||
Net
income
|
$
|
231,318
|
$
|
234,725
|
$
|
187,988
|
||||
Net
income per basic share
|
$
|
2.18
|
$
|
2.17
|
$
|
1.70
|
||||
Net
income per diluted share
|
$
|
2.16
|
$
|
2.13
|
$
|
1.66
|
||||
Average
common shares outstanding
|
106,129
|
108,318
|
110,846
|
|||||||
Dilutive
effect of stock options
|
995
|
1,669
|
2,376
|
|||||||
Average
common shares outstanding - assuming dilution
|
107,124
|
109,987
|
113,222
|
|||||||
For
the Years Ended
|
||||||||||
2006
|
2005
|
2004
|
||||||||
Cash
flows from operating activities:
|
||||||||||
Net
income
|
$
|
231,318
|
$
|
234,725
|
$
|
187,988
|
||||
Adjustments
to reconcile net income to net cash
|
||||||||||
provided
by (used in) operations:
|
||||||||||
Provision
for deferred income taxes
|
-
|
-
|
56
|
|||||||
Equity
in earnings of subsidiary
|
(231,425
|
)
|
(234,831
|
)
|
(188,789
|
)
|
||||
Net
decrease (increase) in working capital
|
295
|
(95
|
)
|
(211
|
)
|
|||||
Net
cash provided by (used in) operating activities
|
188
|
(201
|
)
|
(956
|
)
|
|||||
Cash
flows from investing activities:
|
||||||||||
Change
in net intercompany with subsidiaries
|
(188
|
)
|
201
|
956
|
||||||
Net
cash provided by investing activities
|
(188
|
)
|
201
|
956
|
||||||
Cash
flows from financing activities:
|
-
|
-
|
-
|
|||||||
Net
increase (decrease) in cash and cash equivalents
|
-
|
-
|
-
|
|||||||
Cash
and cash equivalents, beginning of year
|
23
|
23
|
23
|
|||||||
Cash
and cash equivalents, end of year
|
$
|
23
|
$
|
23
|
$
|
23
|
||||
Supplemental
cash flow information:
|
||||||||||
Interest
paid
|
$
|
-
|
$
|
-
|
$
|
-
|
||||
Income
taxes paid, net
|
-
|
-
|
-
|
|||||||
Noncash
transactions:
|
||||||||||
Retirement
of common stock
|
$
|
192,339
|
$
|
193,185
|
$
|
-
|
||||
Declared
but unpaid cash dividends
|
6,320
|
|||||||||
Cash
dividends paid by Stores on behalf of Parent
|
19,153
|
-
|
-
|
|||||||
Proceeds
received by Stores from stock transactions under the
|
||||||||||
Parent's
stock subscription plan and Stores' stock option plan
|
17,203
|
28,696
|
20,470
|
|||||||
Repurchase
of Parent's common stock by Stores
|
(137,560
|
)
|
(101,594
|
)
|
(146,370
|
)
|
||||
Allowance
for doubtful accounts receivable:
|
Balance
at Beginning of Period
|
Charges
to Expenses
|
Deductions
|
Other
|
Balance
at
End
of
Period
|
|||||||||||||||
January
1, 2005
|
$
|
9,130
|
$
|
2,236
|
$
|
(3,263
|
)
|
(1
|
)
|
$
|
-
|
$
|
8,103
|
|||||||
December
31, 2005
|
8,103
|
2,081
|
(6,066
|
)
|
(1
|
)
|
568
|
(2
|
)
|
4,686
|
||||||||||
December
30, 2006
|
4,686
|
1,228
|
(1,274
|
)
|
(1
|
)
|
-
|
4,640
|
||||||||||||
(1)
|
Accounts
written off during the period. These amounts did not
impact our statement
of operations for any year presented.
|
(2)
|
Reserves
assumed in the acquisition of Autopart
International.
|
Dated: February 28, 2007 | |||
|
|
ADVANCE
AUTO PARTS, INC.
|
|
By: |
/s/
Michael O. Moore
|
||
Michael
O. Moore
Executive
Vice President, Chief Financial Officer
|
Signature
|
Title
|
Date
|
|
/s/
Michael N. Coppola
|
Chaiman,
President, Chief Executive
|
February
28, 2007
|
|
Michael
N. Coppola
|
Officer (Principal Executive
|
||
Officer)
|
|||
/s/
Michael O. Moore
|
Executive
Vice President, Chief
|
February
28, 2007
|
|
Michael
O. Moore
|
Financial Officer (Principal
|
||
Financial and Accounting
|
|||
Officer)
|
|||
/s/
John C. Brouillard
|
Lead
Director
|
February
28, 2007
|
|
John
C. Brouillard
|
|||
/s/
Lawrence P. Castellani
|
Director
|
February
28, 2007
|
|
Lawrence
P. Castellani
|
|||
/s/
Darren R. Jackson
|
Director
|
February
28, 2007
|
|
Darren
R. Jackson
|
|||
/s/
Nicholas J. LaHowchic
|
Director
|
February
28, 2007
|
|
Nicholas
J. LaHowchic
|
|||
/s/
William S. Oglesby
|
Director
|
February
28, 2007
|
|
William
S. Oglesby
|
|||
/s/
Gilbert T. Ray
|
Director
|
February
28, 2007
|
|
Gilbert
T. Ray
|
|||
/s/
Carlos A. Saladrigas
|
Director
|
February
28, 2007
|
|
Carlos
A. Saladrigas
|
|||
/s/
William L. Salter
|
Director
|
February
28, 2007
|
|
William
L. Salter
|
|||
/s/
Francesca Spinelli
|
Director
|
February
28, 2007
|
|
Francesca
Spinelli
|
|||
Exhibit
Number
|
Description
|
3.1(6)
|
Restated
Certificate of Incorporation of Advance Auto Parts, Inc. (“Advance
Auto”)(as amended on May 19, 2004).
|
3.2
|
Bylaws
of Advance Auto. (as amended on November 15, 2006).
|
10.1(11)
|
Credit
Agreement dated as of October 5, 2006 among Advance Auto, Advance
Stores
Company, Incorporated (“Advance Stores”), as borrower, the lenders party
hereto and JPMorgan Chase Bank, N.A., as administrative
agent.
|
10.2(11)
|
Guarantee
Agreement dated as of October 5, 2006 among Advance Auto and
JP Morgan
Chase Bank N.A., as administrative agent.
|
10.3(3)
|
Indemnity,
Subrogation and Contribution Agreement dated as of November
28, 2001 among
Advance Auto, Advance Stores, the Guarantors listed therein
and JP Morgan
Chase, as collateral agent.
|
10.4(1) |
Lease
Agreement dated as of January 1, 1997 between Nicholas F. Taubman
and
Advance Stores for the distribution center located at 1835
Blue Hills
Drive, N.E., Roanoke, Virginia, as amended.
|
10.5(2)
|
Advance
Auto 2001 Senior Executive Stock Option Plan.
|
10.6(2)
|
Form
of Advance Auto 2001 Senior Executive Stock Option
Agreement.
|
10.7(2)
|
Advance
Auto 2001 Executive Stock Option Plan.
|
10.8(2)
|
Form
of Advance Auto 2001 Stock Option Agreement.
|
10.9(6)
|
Form
of Indemnity Agreement between each of the directors of Advance
Auto and
Advance Auto, as successor in interest to Advance
Holding.
|
10.10(2)
|
Form
of Advance Auto 2001 Stock Option Agreement for holders of
Discount Auto
Parts, Inc. (“Discount”) fully converted options.
|
10.11(2)
|
Purchase
Agreement dated as of October 31, 2001 among Advance Stores,
Advance
Trucking Corporation, LARALEV, INC., Western Auto Supply Company,
J.P.
Morgan Securities Inc., Credit Suisse First Boston Corporation
and Lehman
Brothers Inc.
|
10.12(3)
|
Joinder to the Purchase Agreement dated as of November 28, 2001 by and among Advance Aircraft Company, Inc., Advance Merchandising Company, Inc., WASCO Insurance Agency, Inc., Western Auto of Puerto Rico, Inc., Western Auto of St. Thomas, Inc., Discount, DAP Acceptance Corporation, J.P. Morgan Securities, Inc., Credit Suisse First Boston Corporation and Lehman Brothers Inc. |
10.13(4)
|
Form
of Master Lease dated as of February 27, 2001 by and between
Dapper
Properties I, II and III, LLC and Discount.
|
10.14(3)
|
Form
of Amendment to Master Lease dated as of December 28, 2001
between Dapper
Properties I, II and III, LLC and Discount.
|
10.15(4)
|
Form
of Sale-Leaseback Agreement dated as of February 27, 2001 by
and between
Dapper Properties I, II and III, LLC and Discount.
|
10.16(3)
|
Substitution
Agreement dated as of November 28, 2001 by and among GE Capital
Franchise
Finance Corporation, Washington Mutual Bank, FA, Dapper Properties
I, II
and III, LLC, Autopar Remainder I, II and III, LLC, Discount
and Advance
Stores.
|
10.17(3)
|
First
Amendment to Substitution Agreement dated as of December 28,
2001 by and
among GE Capital Franchise Finance Corporation, Washington
Mutual Bank,
FA, Dapper Properties I, II and III, LLC, Autopar Remainder
I, II and III,
LLC, Discount, Advance Stores and Western Auto Supply
Company.
|
10.18(7)
|
Reaffirmation
Agreement dated as of November 3, 2004 among Advance Auto,
Advance Stores,
the lenders party thereto and JP Morgan Chase, as administrative
agent and
collateral agent.
|
10.19(5) |
Advance
Auto Parts, Inc. 2004 Long-Term Incentive Plan.
|
10.20(5) |
Form
of Advance Auto Parts, Inc. 2004 Long-Term Incentive Plan Stock
Option
Agreement.
|
10.21(5) |
Form
of Advance Auto Parts, Inc. 2004 Long-Term Incentive Plan Award
Notice.
|
10.22(5) |
Advance
Auto Parts, Inc. Deferred Stock Unit Plan for Non-Employee
Directors and
Selected Executives.
|
10.23(8)
|
Amended
Advance Auto Parts, Inc. Employee Stock Purchase
Plan.
|
10.24(8) |
Advance
Auto Parts, Inc. Deferred Compensation Plan.
|
10.25(8)
|
Advance
Auto Parts, Inc. 2006 Executive Bonus Plan.
|
10.26(9)
|
Form
of Employment Agreement among Advance Auto and Advance Stores
and Michael
N. Coppola, Paul W. Klasing, Michael O. Moore, David B. Mueller,
Elwyn G.
Murray III, Jimmie L. Wade and Keith A.
Oreson.
|
Exhibit
Number
|
Description
|
10.27(10)
|
Release
and Termination Agreement dated as of October 5, 2006, among Advance
Auto, Advance Stores Company, Incorporated and JPMorgan
Chase Bank, N.A.,
as administrative agent.
|
10.28(11)
|
Form
of Advance Auto Parts, Inc. 2007 Restricted Stock
Award.
|
10.29(11)
|
Form
of Advance Auto Parts, Inc. 2007 Stock Appreciation Right
Award.
|
21.1
|
Subsidiaries
of Advance Auto.
|
23.1
|
Consent
of Deloitte & Touche LLP.
|
31.1
|
Certification
of Chief Executive Officer Pursuant to Section 302 of the
Sarbanes-Oxley
Act of 2002.
|
31.2
|
Certification
of Chief Financial Officer Pursuant to Section 302 of the
Sarbanes-Oxley
Act of 2002.
|
32.1
|
Certifications
of Chief Executive Officer and Chief Financial Officer
Pursuant to Section
906 of the Sarbanes-Oxley Act of
2002.
|
(1) | Filed on June 4, 1998 as an exhibit to Registration Statement on Form S-4 (No. 333-56013) of Advance Stores Company, Incorporated. |
(2)
|
Furnished
on November 6, 2001 as an exhibit to Amendment No. 2
to Registration
Statement on Form S-4 (No. 333-68858) of Advance Auto
Parts,
Inc.
|
(3)
|
Filed
on January 22, 2002 as an exhibit to Registration Statement
on Form S-4
(No. 333-81180) of Advance Stores Company,
Incorporated.
|
(4)
|
Filed
on April 2, 2001 as an exhibit to the Quarterly Report
on Form 10-Q of
Discount.
|
(5)
|
Filed
on August 16, 2004 as an exhibit to the Quarterly Report
on Form 10-Q of
Advance Auto Parts, Inc.
|
(6)
|
Filed
on May 20, 2004 as an exhibit to Current Report on
Form 8-K of Advance
Auto Parts, Inc.
|
(7)
|
Filed
on November 9, 2004 as an exhibit to Current Report
on Form 8-K of Advance
Auto Parts, Inc.
|
(8)
|
Filed
on March 16, 2006 as an exhibit to the Annual Report on
Form 10-K of
Advance Auto Parts, Inc.
|
(9)
|
Filed
on April 6, 2006 as an exhibit to the Annual Report on
Form 8-K of Advance
Auto Parts, Inc.
|
(10)
|
Filed
on October 12, 2006 as an exhibit to Current Report on
Form 8-K of Advance
Auto Parts, Inc.
|
(11)
|
Filed
on February 26, 2007 as an exhibit to Current Report on
Form 8-K of
Advance Auto Parts, Inc.
|