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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Advance Auto Parts | NYSE:AAP | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.24 | 0.32% | 74.95 | 75.95 | 74.15 | 74.82 | 721,695 | 00:58:37 |
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Delaware
(State or other jurisdiction of
incorporation or organization)
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54-2049910
(I.R.S. Employer
Identification No.)
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Large accelerated filer
x
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Accelerated filer
o
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Non-accelerated filer
o
(Do not check if a smaller reporting company)
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Smaller reporting company
o
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Emerging growth company
o
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ITEM 1.
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CONDENSED CONSOLIDATED FINANCIAL STATEMENTS OF
|
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July 15,
2017 |
|
December 31,
2016 |
|
||||
Assets
|
|
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|
|
||||
Current assets:
|
|
|
|
|
||||
Cash and cash equivalents
|
$
|
257,230
|
|
|
$
|
135,178
|
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Receivables, net
|
680,503
|
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|
641,252
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||
Inventories
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4,293,367
|
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4,325,868
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|
|
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Other current assets
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95,115
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70,466
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Total current assets
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5,326,215
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5,172,764
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Property and equipment, net of accumulated depreciation of $1,743,671 and $1,660,648
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1,431,294
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1,446,340
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Goodwill
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993,916
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990,877
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|
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Intangible assets, net
|
618,879
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640,903
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|
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Other assets, net
|
67,109
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64,149
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||
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$
|
8,437,413
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$
|
8,315,033
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Liabilities and Stockholders' Equity
|
|
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Current liabilities:
|
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|
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Accounts payable
|
2,937,096
|
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3,086,177
|
|
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Accrued expenses
|
629,088
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|
554,397
|
|
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Other current liabilities
|
32,143
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|
35,472
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|
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Total current liabilities
|
3,598,327
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3,676,046
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Long-term debt
|
1,043,690
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|
1,042,949
|
|
|
||
Deferred income taxes
|
438,782
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454,282
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|
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Other long-term liabilities
|
228,337
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225,564
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Commitments and contingencies
|
|
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Stockholders' equity:
|
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Preferred stock, nonvoting, $0.0001 par value
|
—
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—
|
|
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Common stock, voting, $0.0001 par value
|
8
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8
|
|
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Additional paid-in capital
|
647,823
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|
631,052
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|
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Treasury stock, at cost
|
(141,405
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)
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(138,102
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)
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Accumulated other comprehensive loss
|
(26,664
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)
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(39,701
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)
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Retained earnings
|
2,648,515
|
|
|
2,462,935
|
|
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||
Total stockholders' equity
|
3,128,277
|
|
|
2,916,192
|
|
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||
|
$
|
8,437,413
|
|
|
$
|
8,315,033
|
|
|
|
Twelve Week Periods Ended
|
|
Twenty-Eight Week Periods Ended
|
||||||||||||
|
July 15,
2017 |
|
July 16,
2016 |
|
July 15,
2017 |
|
July 16,
2016 |
||||||||
Net sales
|
$
|
2,263,727
|
|
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$
|
2,256,155
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$
|
5,154,565
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$
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5,235,933
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Cost of sales,
including purchasing and warehousing costs
|
1,270,639
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1,245,898
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2,890,793
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2,875,787
|
|
||||
Gross profit
|
993,088
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1,010,257
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2,263,772
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2,360,146
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|
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Selling, general and administrative expenses
|
846,377
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793,573
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1,937,281
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1,872,463
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||||
Operating income
|
146,711
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216,684
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326,491
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487,683
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|
||||
Other, net:
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||||||
Interest expense
|
(13,921
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)
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(14,021
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)
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(32,351
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)
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(32,964
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)
|
||||
Other income, net
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3,169
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6,244
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7,982
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9,367
|
|
||||
Total other, net
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(10,752
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)
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(7,777
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)
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(24,369
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)
|
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(23,597
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)
|
||||
Income before provision for income taxes
|
135,959
|
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|
208,907
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|
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302,122
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|
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464,086
|
|
||||
Provision for income taxes
|
48,910
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|
84,307
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|
107,113
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|
180,673
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|
||||
Net income
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$
|
87,049
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$
|
124,600
|
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$
|
195,009
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$
|
283,413
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Basic earnings per share
|
$
|
1.18
|
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$
|
1.69
|
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$
|
2.64
|
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$
|
3.84
|
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Weighted average shares outstanding
|
73,848
|
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73,576
|
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|
73,810
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73,476
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||||
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||||||||
Diluted earnings per share
|
$
|
1.17
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$
|
1.68
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$
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2.63
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$
|
3.82
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Weighted average shares outstanding - assuming dilution
|
74,093
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73,835
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74,093
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73,842
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|
||||
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||||||||
Dividends declared per share
|
$
|
0.06
|
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$
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0.06
|
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$
|
0.12
|
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$
|
0.12
|
|
|
Twelve Week Periods Ended
|
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Twenty-Eight Week Periods Ended
|
||||||||||||
|
July 15,
2017 |
|
July 16,
2016 |
|
July 15,
2017 |
|
July 16,
2016 |
||||||||
Net income
|
$
|
87,049
|
|
|
$
|
124,600
|
|
|
$
|
195,009
|
|
|
$
|
283,413
|
|
Other comprehensive (loss) income:
|
|
|
|
|
|
|
|
||||||||
Changes in net unrecognized other postretirement benefit costs, net of tax of $41, $88, $95 and $206
|
(63
|
)
|
|
(137
|
)
|
|
(148
|
)
|
|
(319
|
)
|
||||
Currency translation adjustments
|
13,973
|
|
|
(4,468
|
)
|
|
13,185
|
|
|
11,957
|
|
||||
Total other comprehensive income (loss)
|
13,910
|
|
|
(4,605
|
)
|
|
13,037
|
|
|
11,638
|
|
||||
Comprehensive income
|
$
|
100,959
|
|
|
$
|
119,995
|
|
|
$
|
208,046
|
|
|
$
|
295,051
|
|
Advance Auto Parts, Inc. and Subsidiaries
Condensed Consolidated Statements of Cash Flows (In thousands) (Unaudited) |
|||||||
|
Twenty-Eight Week Periods Ended
|
||||||
|
July 15, 2017
|
|
July 16, 2016
|
||||
Cash flows from operating activities:
|
|
|
|
||||
Net income
|
$
|
195,009
|
|
|
$
|
283,413
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
135,200
|
|
|
139,265
|
|
||
Share-based compensation
|
19,938
|
|
|
9,142
|
|
||
Loss on property and equipment, net
|
4,361
|
|
|
2,402
|
|
||
(Benefit) provision for deferred income taxes
|
(16,006
|
)
|
|
11,454
|
|
||
Other, net
|
1,851
|
|
|
(1,390
|
)
|
||
Net change in:
|
|
|
|
||||
Receivables, net
|
(37,012
|
)
|
|
(57,241
|
)
|
||
Inventories
|
41,923
|
|
|
(236,403
|
)
|
||
Accounts payable
|
(153,750
|
)
|
|
11,611
|
|
||
Accrued expenses
|
91,333
|
|
|
51,488
|
|
||
Other assets and liabilities
|
(15,498
|
)
|
|
(5,301
|
)
|
||
Net cash provided by operating activities
|
267,349
|
|
|
208,440
|
|
||
Cash flows from investing activities:
|
|
|
|
|
|
||
Purchases of property and equipment
|
(122,364
|
)
|
|
(137,920
|
)
|
||
Proceeds from sales of property and equipment
|
1,311
|
|
|
1,293
|
|
||
Other, net
|
20
|
|
|
(2,430
|
)
|
||
Net cash used in investing activities
|
(121,033
|
)
|
|
(139,057
|
)
|
||
Cash flows from financing activities:
|
|
|
|
|
|
||
(Decrease) increase in bank overdrafts
|
(4,202
|
)
|
|
13,656
|
|
||
Borrowings under credit facilities
|
534,400
|
|
|
576,600
|
|
||
Payments on credit facilities
|
(534,400
|
)
|
|
(611,100
|
)
|
||
Dividends paid
|
(13,363
|
)
|
|
(13,291
|
)
|
||
Proceeds from the issuance of common stock
|
2,281
|
|
|
2,222
|
|
||
Tax withholdings related to the exercise of stock appreciation rights
|
(6,230
|
)
|
|
(12,489
|
)
|
||
Repurchase of common stock
|
(3,303
|
)
|
|
(12,179
|
)
|
||
Other, net
|
(2,027
|
)
|
|
(224
|
)
|
||
Net cash used in financing activities
|
(26,844
|
)
|
|
(56,805
|
)
|
||
Effect of exchange rate changes on cash
|
2,580
|
|
|
1,467
|
|
||
Net increase in cash and cash equivalents
|
122,052
|
|
|
14,045
|
|
||
Cash and cash equivalents
, beginning of period
|
135,178
|
|
|
90,782
|
|
||
Cash and cash equivalents
, end of period
|
$
|
257,230
|
|
|
$
|
104,827
|
|
|
|
|
|
||||
Non-cash transactions:
|
|
|
|
||||
Accrued purchases of property and equipment
|
$
|
10,205
|
|
|
$
|
22,523
|
|
(in thousands)
|
July 15,
2017 |
|
December 31, 2016
|
||||
Inventories at FIFO
|
$
|
4,082,051
|
|
|
$
|
4,120,030
|
|
Adjustments to state inventories at LIFO
|
211,316
|
|
|
205,838
|
|
||
Inventories at LIFO
|
$
|
4,293,367
|
|
|
$
|
4,325,868
|
|
(in thousands)
|
|
Closed Facility Lease Obligations
|
|
Severance
|
|
Total
|
||||||
Balance, December 31, 2016
|
|
$
|
44,265
|
|
|
$
|
959
|
|
|
$
|
45,224
|
|
Reserves established
|
|
3,400
|
|
|
7,282
|
|
|
10,682
|
|
|||
Change in estimates
|
|
1,705
|
|
|
(156
|
)
|
|
1,549
|
|
|||
Cash payments
|
|
(9,483
|
)
|
|
(4,331
|
)
|
|
(13,814
|
)
|
|||
Balance, July 15, 2017
|
|
$
|
39,887
|
|
|
$
|
3,754
|
|
|
$
|
43,641
|
|
|
|
|
|
|
|
|
||||||
Balance, January 2, 2016
|
|
$
|
42,490
|
|
|
$
|
6,255
|
|
|
$
|
48,745
|
|
Reserves established
|
|
23,252
|
|
|
988
|
|
|
24,240
|
|
|||
Change in estimates
|
|
(3,073
|
)
|
|
(410
|
)
|
|
(3,483
|
)
|
|||
Cash payments
|
|
(18,404
|
)
|
|
(5,874
|
)
|
|
(24,278
|
)
|
|||
Balance, December 31, 2016
|
|
$
|
44,265
|
|
|
$
|
959
|
|
|
$
|
45,224
|
|
(in thousands)
|
|
July 15,
2017 |
|
December 31, 2016
|
||||
Trade
|
|
$
|
457,513
|
|
|
$
|
407,301
|
|
Vendor
|
|
241,822
|
|
|
239,770
|
|
||
Other
|
|
14,331
|
|
|
23,345
|
|
||
Total receivables
|
|
713,666
|
|
|
670,416
|
|
||
Less: Allowance for doubtful accounts
|
|
(33,163
|
)
|
|
(29,164
|
)
|
||
Receivables, net
|
|
$
|
680,503
|
|
|
$
|
641,252
|
|
(in thousands)
|
July 15,
2017 |
|
December 31,
2016 |
||||
Total long-term debt
|
1,044,108
|
|
|
1,043,255
|
|
||
Less: Current portion of long-term debt (included in Other current liabilities)
|
(418
|
)
|
|
(306
|
)
|
||
Long-term debt, excluding current portion
|
$
|
1,043,690
|
|
|
$
|
1,042,949
|
|
|
|
|
|
||||
Fair value of long-term debt
|
$
|
1,125,000
|
|
|
$
|
1,118,000
|
|
|
Twelve Weeks Ended
|
|
Twenty-Eight Weeks Ended
|
||||||||||||
(in thousands, except per share data)
|
July 15,
2017 |
|
July 16,
2016 |
|
July 15,
2017 |
|
July 16,
2016 |
||||||||
Numerator
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
87,049
|
|
|
$
|
124,600
|
|
|
$
|
195,009
|
|
|
$
|
283,413
|
|
Denominator
|
|
|
|
|
|
|
|
|
|||||||
Basic weighted average shares
|
73,848
|
|
|
73,576
|
|
|
73,810
|
|
|
73,476
|
|
||||
Dilutive impact of share-based awards
|
245
|
|
|
259
|
|
|
283
|
|
|
366
|
|
||||
Diluted weighted average shares
|
74,093
|
|
|
73,835
|
|
|
74,093
|
|
|
73,842
|
|
||||
|
|
|
|
|
|
|
|
|
|
||||||
Basic earnings per share
|
$
|
1.18
|
|
|
$
|
1.69
|
|
|
$
|
2.64
|
|
|
$
|
3.84
|
|
|
|
|
|
|
|
|
|
|
|
||||||
Diluted earnings per share
|
$
|
1.17
|
|
|
$
|
1.68
|
|
|
$
|
2.63
|
|
|
$
|
3.82
|
|
|
Twenty-Eight Weeks Ended
|
|
Fifty-Two Weeks Ended
|
||||
(in thousands)
|
July 15,
2017 |
|
December 31, 2016
|
||||
Warranty reserve, beginning of period
|
$
|
47,243
|
|
|
$
|
44,479
|
|
Additions to warranty reserves
|
28,011
|
|
|
46,903
|
|
||
Reserves utilized
|
(25,071
|
)
|
|
(44,139
|
)
|
||
Warranty reserve, end of period
|
$
|
50,183
|
|
|
$
|
47,243
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
22
|
|
|
$
|
215,753
|
|
|
$
|
41,477
|
|
|
$
|
(22
|
)
|
|
$
|
257,230
|
|
Receivables, net
|
—
|
|
|
640,204
|
|
|
40,299
|
|
|
—
|
|
|
680,503
|
|
|||||
Inventories
|
—
|
|
|
4,090,863
|
|
|
202,504
|
|
|
—
|
|
|
4,293,367
|
|
|||||
Other current assets
|
137
|
|
|
94,769
|
|
|
456
|
|
|
(247
|
)
|
|
95,115
|
|
|||||
Total current assets
|
159
|
|
|
5,041,589
|
|
|
284,736
|
|
|
(269
|
)
|
|
5,326,215
|
|
|||||
Property and equipment, net of accumulated depreciation
|
114
|
|
|
1,421,231
|
|
|
9,949
|
|
|
—
|
|
|
1,431,294
|
|
|||||
Goodwill
|
—
|
|
|
943,359
|
|
|
50,557
|
|
|
—
|
|
|
993,916
|
|
|||||
Intangible assets, net
|
—
|
|
|
572,134
|
|
|
46,745
|
|
|
—
|
|
|
618,879
|
|
|||||
Other assets, net
|
4,928
|
|
|
66,396
|
|
|
712
|
|
|
(4,927
|
)
|
|
67,109
|
|
|||||
Investment in subsidiaries
|
3,227,142
|
|
|
424,917
|
|
|
—
|
|
|
(3,652,059
|
)
|
|
—
|
|
|||||
Intercompany note receivable
|
1,048,572
|
|
|
—
|
|
|
—
|
|
|
(1,048,572
|
)
|
|
—
|
|
|||||
Due from intercompany, net
|
—
|
|
|
—
|
|
|
324,631
|
|
|
(324,631
|
)
|
|
—
|
|
|||||
|
$
|
4,280,915
|
|
|
$
|
8,469,626
|
|
|
$
|
717,330
|
|
|
$
|
(5,030,458
|
)
|
|
$
|
8,437,413
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
2,694,002
|
|
|
$
|
243,094
|
|
|
$
|
—
|
|
|
$
|
2,937,096
|
|
Accrued expenses
|
2,600
|
|
|
603,599
|
|
|
23,136
|
|
|
(247
|
)
|
|
629,088
|
|
|||||
Other current liabilities
|
—
|
|
|
27,893
|
|
|
4,272
|
|
|
(22
|
)
|
|
32,143
|
|
|||||
Total current liabilities
|
2,600
|
|
|
3,325,494
|
|
|
270,502
|
|
|
(269
|
)
|
|
3,598,327
|
|
|||||
Long-term debt
|
1,043,690
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,043,690
|
|
|||||
Deferred income taxes
|
—
|
|
|
423,933
|
|
|
19,777
|
|
|
(4,928
|
)
|
|
438,782
|
|
|||||
Other long-term liabilities
|
—
|
|
|
226,203
|
|
|
2,134
|
|
|
—
|
|
|
228,337
|
|
|||||
Intercompany note payable
|
—
|
|
|
1,048,572
|
|
|
|
|
(1,048,572
|
)
|
|
—
|
|
||||||
Due to intercompany, net
|
106,349
|
|
|
218,282
|
|
|
—
|
|
|
(324,631
|
)
|
|
—
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
3,128,276
|
|
|
3,227,142
|
|
|
424,917
|
|
|
(3,652,058
|
)
|
|
3,128,277
|
|
|||||
|
$
|
4,280,915
|
|
|
$
|
8,469,626
|
|
|
$
|
717,330
|
|
|
$
|
(5,030,458
|
)
|
|
$
|
8,437,413
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
22
|
|
|
$
|
78,543
|
|
|
$
|
56,635
|
|
|
$
|
(22
|
)
|
|
$
|
135,178
|
|
Receivables, net
|
—
|
|
|
619,229
|
|
|
22,023
|
|
|
—
|
|
|
641,252
|
|
|||||
Inventories
|
—
|
|
|
4,126,465
|
|
|
199,403
|
|
|
—
|
|
|
4,325,868
|
|
|||||
Other current assets
|
—
|
|
|
69,385
|
|
|
1,153
|
|
|
(72
|
)
|
|
70,466
|
|
|||||
Total current assets
|
22
|
|
|
4,893,622
|
|
|
279,214
|
|
|
(94
|
)
|
|
5,172,764
|
|
|||||
Property and equipment, net of accumulated depreciation
|
128
|
|
|
1,436,459
|
|
|
9,753
|
|
|
—
|
|
|
1,446,340
|
|
|||||
Goodwill
|
—
|
|
|
943,359
|
|
|
47,518
|
|
|
—
|
|
|
990,877
|
|
|||||
Intangible assets, net
|
—
|
|
|
595,596
|
|
|
45,307
|
|
|
—
|
|
|
640,903
|
|
|||||
Other assets, net
|
4,634
|
|
|
63,376
|
|
|
773
|
|
|
(4,634
|
)
|
|
64,149
|
|
|||||
Investment in subsidiaries
|
3,008,856
|
|
|
375,420
|
|
|
—
|
|
|
(3,384,276
|
)
|
|
—
|
|
|||||
Intercompany note receivable
|
1,048,424
|
|
|
—
|
|
|
—
|
|
|
(1,048,424
|
)
|
|
—
|
|
|||||
Due from intercompany, net
|
—
|
|
|
—
|
|
|
316,109
|
|
|
(316,109
|
)
|
|
—
|
|
|||||
|
$
|
4,062,064
|
|
|
$
|
8,307,832
|
|
|
$
|
698,674
|
|
|
$
|
(4,753,537
|
)
|
|
$
|
8,315,033
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Accounts payable
|
$
|
—
|
|
|
$
|
2,813,937
|
|
|
$
|
272,240
|
|
|
$
|
—
|
|
|
$
|
3,086,177
|
|
Accrued expenses
|
1,505
|
|
|
526,652
|
|
|
26,312
|
|
|
(72
|
)
|
|
554,397
|
|
|||||
Other current liabilities
|
—
|
|
|
32,508
|
|
|
2,986
|
|
|
(22
|
)
|
|
35,472
|
|
|||||
Total current liabilities
|
1,505
|
|
|
3,373,097
|
|
|
301,538
|
|
|
(94
|
)
|
|
3,676,046
|
|
|||||
Long-term debt
|
1,042,949
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,042,949
|
|
|||||
Deferred income taxes
|
—
|
|
|
439,283
|
|
|
19,633
|
|
|
(4,634
|
)
|
|
454,282
|
|
|||||
Other long-term liabilities
|
—
|
|
|
223,481
|
|
|
2,083
|
|
|
—
|
|
|
225,564
|
|
|||||
Intercompany note payable
|
—
|
|
|
1,048,424
|
|
|
—
|
|
|
(1,048,424
|
)
|
|
—
|
|
|||||
Due to intercompany, net
|
101,418
|
|
|
214,691
|
|
|
—
|
|
|
(316,109
|
)
|
|
—
|
|
|||||
Commitments and contingencies
|
|
|
|
|
|
|
|
|
|
||||||||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Stockholders' equity
|
2,916,192
|
|
|
3,008,856
|
|
|
375,420
|
|
|
(3,384,276
|
)
|
|
2,916,192
|
|
|||||
|
$
|
4,062,064
|
|
|
$
|
8,307,832
|
|
|
$
|
698,674
|
|
|
$
|
(4,753,537
|
)
|
|
$
|
8,315,033
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net sales
|
$
|
—
|
|
|
$
|
2,175,274
|
|
|
$
|
138,291
|
|
|
$
|
(49,838
|
)
|
|
$
|
2,263,727
|
|
Cost of sales, including purchasing and warehousing costs
|
—
|
|
|
1,224,648
|
|
|
95,829
|
|
|
(49,838
|
)
|
|
1,270,639
|
|
|||||
Gross profit
|
—
|
|
|
950,626
|
|
|
42,462
|
|
|
—
|
|
|
993,088
|
|
|||||
Selling, general and administrative expenses
|
5,370
|
|
|
833,966
|
|
|
18,864
|
|
|
(11,823
|
)
|
|
846,377
|
|
|||||
Operating (loss) income
|
(5,370
|
)
|
|
116,660
|
|
|
23,598
|
|
|
11,823
|
|
|
146,711
|
|
|||||
Other, net:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest (expense) income
|
(12,076
|
)
|
|
(1,863
|
)
|
|
18
|
|
|
—
|
|
|
(13,921
|
)
|
|||||
Other income (expense), net
|
17,567
|
|
|
(5,413
|
)
|
|
2,838
|
|
|
(11,823
|
)
|
|
3,169
|
|
|||||
Total other, net
|
5,491
|
|
|
(7,276
|
)
|
|
2,856
|
|
|
(11,823
|
)
|
|
(10,752
|
)
|
|||||
Income before provision for income taxes
|
121
|
|
|
109,384
|
|
|
26,454
|
|
|
—
|
|
|
135,959
|
|
|||||
Provision for income taxes
|
128
|
|
|
42,850
|
|
|
5,932
|
|
|
—
|
|
|
48,910
|
|
|||||
(Loss) income before equity in earnings of subsidiaries
|
(7
|
)
|
|
66,534
|
|
|
20,522
|
|
|
—
|
|
|
87,049
|
|
|||||
Equity in earnings of subsidiaries
|
87,056
|
|
|
20,522
|
|
|
—
|
|
|
(107,578
|
)
|
|
—
|
|
|||||
Net income
|
$
|
87,049
|
|
|
$
|
87,056
|
|
|
$
|
20,522
|
|
|
$
|
(107,578
|
)
|
|
$
|
87,049
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net sales
|
$
|
—
|
|
|
$
|
2,173,812
|
|
|
$
|
131,123
|
|
|
$
|
(48,780
|
)
|
|
$
|
2,256,155
|
|
Cost of sales, including purchasing and warehousing costs
|
—
|
|
|
1,205,526
|
|
|
89,152
|
|
|
(48,780
|
)
|
|
1,245,898
|
|
|||||
Gross profit
|
—
|
|
|
968,286
|
|
|
41,971
|
|
|
—
|
|
|
1,010,257
|
|
|||||
Selling, general and administrative expenses
|
3,389
|
|
|
780,808
|
|
|
22,863
|
|
|
(13,487
|
)
|
|
793,573
|
|
|||||
Operating (loss) income
|
(3,389
|
)
|
|
187,478
|
|
|
19,108
|
|
|
13,487
|
|
|
216,684
|
|
|||||
Other, net:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest (expense) income
|
(12,072
|
)
|
|
(1,966
|
)
|
|
17
|
|
|
—
|
|
|
(14,021
|
)
|
|||||
Other income (expense), net
|
16,172
|
|
|
4,754
|
|
|
(1,195
|
)
|
|
(13,487
|
)
|
|
6,244
|
|
|||||
Total other, net
|
4,100
|
|
|
2,788
|
|
|
(1,178
|
)
|
|
(13,487
|
)
|
|
(7,777
|
)
|
|||||
Income before provision for income taxes
|
711
|
|
|
190,266
|
|
|
17,930
|
|
|
—
|
|
|
208,907
|
|
|||||
Provision for income taxes
|
2,078
|
|
|
78,136
|
|
|
4,093
|
|
|
—
|
|
|
84,307
|
|
|||||
(Loss) income before equity in earnings of subsidiaries
|
(1,367
|
)
|
|
112,130
|
|
|
13,837
|
|
|
—
|
|
|
124,600
|
|
|||||
Equity in earnings of subsidiaries
|
125,967
|
|
|
13,837
|
|
|
—
|
|
|
(139,804
|
)
|
|
—
|
|
|||||
Net income
|
$
|
124,600
|
|
|
$
|
125,967
|
|
|
$
|
13,837
|
|
|
$
|
(139,804
|
)
|
|
$
|
124,600
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net sales
|
$
|
—
|
|
|
$
|
4,977,128
|
|
|
$
|
310,295
|
|
|
$
|
(132,858
|
)
|
|
$
|
5,154,565
|
|
Cost of sales, including purchasing and warehousing costs
|
—
|
|
|
2,801,921
|
|
|
221,730
|
|
|
(132,858
|
)
|
|
2,890,793
|
|
|||||
Gross profit
|
—
|
|
|
2,175,207
|
|
|
88,565
|
|
|
—
|
|
|
2,263,772
|
|
|||||
Selling, general and administrative expenses
|
20,167
|
|
|
1,901,621
|
|
|
43,266
|
|
|
(27,773
|
)
|
|
1,937,281
|
|
|||||
Operating (loss) income
|
(20,167
|
)
|
|
273,586
|
|
|
45,299
|
|
|
27,773
|
|
|
326,491
|
|
|||||
Other, net:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest (expense) income
|
(28,366
|
)
|
|
(4,023
|
)
|
|
38
|
|
|
—
|
|
|
(32,351
|
)
|
|||||
Other income (expense), net
|
49,351
|
|
|
(12,766
|
)
|
|
(830
|
)
|
|
(27,773
|
)
|
|
7,982
|
|
|||||
Total other, net
|
20,985
|
|
|
(16,789
|
)
|
|
(792
|
)
|
|
(27,773
|
)
|
|
(24,369
|
)
|
|||||
Income before provision for income taxes
|
818
|
|
|
256,797
|
|
|
44,507
|
|
|
—
|
|
|
302,122
|
|
|||||
(Benefit) provision for income taxes
|
(1,616
|
)
|
|
100,296
|
|
|
8,433
|
|
|
—
|
|
|
107,113
|
|
|||||
Income before equity in earnings of subsidiaries
|
2,434
|
|
|
156,501
|
|
|
36,074
|
|
|
—
|
|
|
195,009
|
|
|||||
Equity in earnings of subsidiaries
|
192,572
|
|
|
36,074
|
|
|
—
|
|
|
(228,646
|
)
|
|
—
|
|
|||||
Net income
|
$
|
195,006
|
|
|
$
|
192,575
|
|
|
$
|
36,074
|
|
|
$
|
(228,646
|
)
|
|
$
|
195,009
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net sales
|
$
|
—
|
|
|
$
|
5,066,198
|
|
|
$
|
320,098
|
|
|
$
|
(150,363
|
)
|
|
$
|
5,235,933
|
|
Cost of sales, including purchasing and warehousing costs
|
—
|
|
|
2,804,343
|
|
|
221,807
|
|
|
(150,363
|
)
|
|
2,875,787
|
|
|||||
Gross profit
|
—
|
|
|
2,261,855
|
|
|
98,291
|
|
|
—
|
|
|
2,360,146
|
|
|||||
Selling, general and administrative expenses
|
11,300
|
|
|
1,841,576
|
|
|
51,221
|
|
|
(31,634
|
)
|
|
1,872,463
|
|
|||||
Operating (loss) income
|
(11,300
|
)
|
|
420,279
|
|
|
47,070
|
|
|
31,634
|
|
|
487,683
|
|
|||||
Other, net:
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest (expense) income
|
(28,216
|
)
|
|
(4,788
|
)
|
|
40
|
|
|
—
|
|
|
(32,964
|
)
|
|||||
Other income (expense), net
|
39,715
|
|
|
(1,522
|
)
|
|
2,808
|
|
|
(31,634
|
)
|
|
9,367
|
|
|||||
Total other, net
|
11,499
|
|
|
(6,310
|
)
|
|
2,848
|
|
|
(31,634
|
)
|
|
(23,597
|
)
|
|||||
Income before provision for income taxes
|
199
|
|
|
413,969
|
|
|
49,918
|
|
|
—
|
|
|
464,086
|
|
|||||
Provision for income taxes
|
647
|
|
|
169,412
|
|
|
10,614
|
|
|
—
|
|
|
180,673
|
|
|||||
(Loss) income before equity in earnings of subsidiaries
|
(448
|
)
|
|
244,557
|
|
|
39,304
|
|
|
—
|
|
|
283,413
|
|
|||||
Equity in earnings of subsidiaries
|
283,861
|
|
|
39,304
|
|
|
—
|
|
|
(323,165
|
)
|
|
—
|
|
|||||
Net income
|
$
|
283,413
|
|
|
$
|
283,861
|
|
|
$
|
39,304
|
|
|
$
|
(323,165
|
)
|
|
$
|
283,413
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
87,049
|
|
|
$
|
87,056
|
|
|
$
|
20,522
|
|
|
$
|
(107,578
|
)
|
|
$
|
87,049
|
|
Other comprehensive income
|
13,910
|
|
|
13,910
|
|
|
13,973
|
|
|
(27,883
|
)
|
|
13,910
|
|
|||||
Comprehensive income
|
$
|
100,959
|
|
|
$
|
100,966
|
|
|
$
|
34,495
|
|
|
$
|
(135,461
|
)
|
|
$
|
100,959
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
124,600
|
|
|
$
|
125,967
|
|
|
$
|
13,837
|
|
|
$
|
(139,804
|
)
|
|
$
|
124,600
|
|
Other comprehensive loss
|
(4,605
|
)
|
|
(4,605
|
)
|
|
(4,468
|
)
|
|
9,073
|
|
|
(4,605
|
)
|
|||||
Comprehensive income
|
$
|
119,995
|
|
|
$
|
121,362
|
|
|
$
|
9,369
|
|
|
$
|
(130,731
|
)
|
|
$
|
119,995
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
195,006
|
|
|
$
|
192,575
|
|
|
$
|
36,074
|
|
|
$
|
(228,646
|
)
|
|
$
|
195,009
|
|
Other comprehensive income
|
13,037
|
|
|
13,037
|
|
|
13,185
|
|
|
(26,222
|
)
|
|
13,037
|
|
|||||
Comprehensive income
|
$
|
208,043
|
|
|
$
|
205,612
|
|
|
$
|
49,259
|
|
|
$
|
(254,868
|
)
|
|
$
|
208,046
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net income
|
$
|
283,413
|
|
|
$
|
283,861
|
|
|
$
|
39,304
|
|
|
$
|
(323,165
|
)
|
|
$
|
283,413
|
|
Other comprehensive income
|
11,638
|
|
|
11,638
|
|
|
11,957
|
|
|
(23,595
|
)
|
|
11,638
|
|
|||||
Comprehensive income
|
$
|
295,051
|
|
|
$
|
295,499
|
|
|
$
|
51,261
|
|
|
$
|
(346,760
|
)
|
|
$
|
295,051
|
|
(in thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
—
|
|
|
$
|
285,164
|
|
|
$
|
(17,815
|
)
|
|
$
|
—
|
|
|
$
|
267,349
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property and equipment
|
—
|
|
|
(121,615
|
)
|
|
(749
|
)
|
|
—
|
|
|
(122,364
|
)
|
|||||
Proceeds from sales of property and equipment
|
—
|
|
|
1,311
|
|
|
—
|
|
|
—
|
|
|
1,311
|
|
|||||
Other, net
|
—
|
|
|
480
|
|
|
(460
|
)
|
|
—
|
|
|
20
|
|
|||||
Net cash used in investing activities
|
—
|
|
|
(119,824
|
)
|
|
(1,209
|
)
|
|
—
|
|
|
(121,033
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
(Decrease) increase in bank overdrafts
|
—
|
|
|
(5,488
|
)
|
|
1,286
|
|
|
—
|
|
|
(4,202
|
)
|
|||||
Borrowings under credit facilities
|
—
|
|
|
534,400
|
|
|
—
|
|
|
—
|
|
|
534,400
|
|
|||||
Payments on credit facilities
|
—
|
|
|
(534,400
|
)
|
|
—
|
|
|
—
|
|
|
(534,400
|
)
|
|||||
Dividends paid
|
—
|
|
|
(13,363
|
)
|
|
—
|
|
|
—
|
|
|
(13,363
|
)
|
|||||
Proceeds from the issuance of common stock
|
—
|
|
|
2,281
|
|
|
—
|
|
|
—
|
|
|
2,281
|
|
|||||
Tax withholdings related to the exercise of stock appreciation rights
|
—
|
|
|
(6,230
|
)
|
|
—
|
|
|
—
|
|
|
(6,230
|
)
|
|||||
Repurchase of common stock
|
—
|
|
|
(3,303
|
)
|
|
—
|
|
|
—
|
|
|
(3,303
|
)
|
|||||
Other, net
|
—
|
|
|
(2,027
|
)
|
|
—
|
|
|
—
|
|
|
(2,027
|
)
|
|||||
Net cash (used in) provided by financing activities
|
—
|
|
|
(28,130
|
)
|
|
1,286
|
|
|
—
|
|
|
(26,844
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
2,580
|
|
|
—
|
|
|
2,580
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
137,210
|
|
|
(15,158
|
)
|
|
—
|
|
|
122,052
|
|
|||||
Cash and cash equivalents
, beginning of period
|
22
|
|
|
78,543
|
|
|
56,635
|
|
|
(22
|
)
|
|
135,178
|
|
|||||
Cash and cash equivalents
, end of period
|
$
|
22
|
|
|
$
|
215,753
|
|
|
$
|
41,477
|
|
|
$
|
(22
|
)
|
|
$
|
257,230
|
|
(In thousands)
|
Advance Auto Parts, Inc.
|
|
Guarantor Subsidiaries
|
|
Non-Guarantor Subsidiaries
|
|
Eliminations
|
|
Consolidated
|
||||||||||
Net cash provided by (used in) operating activities
|
$
|
—
|
|
|
$
|
216,139
|
|
|
$
|
(7,699
|
)
|
|
$
|
—
|
|
|
$
|
208,440
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchases of property and equipment
|
—
|
|
|
(136,502
|
)
|
|
(1,418
|
)
|
|
—
|
|
|
(137,920
|
)
|
|||||
Proceeds from sales of property and equipment
|
—
|
|
|
1,291
|
|
|
2
|
|
|
—
|
|
|
1,293
|
|
|||||
Other, net
|
—
|
|
|
(2,430
|
)
|
|
—
|
|
|
—
|
|
|
(2,430
|
)
|
|||||
Net cash used in investing activities
|
—
|
|
|
(137,641
|
)
|
|
(1,416
|
)
|
|
—
|
|
|
(139,057
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Increase in bank overdrafts
|
—
|
|
|
11,376
|
|
|
2,280
|
|
|
—
|
|
|
13,656
|
|
|||||
Borrowings under credit facilities
|
—
|
|
|
576,600
|
|
|
—
|
|
|
—
|
|
|
576,600
|
|
|||||
Payments on credit facilities
|
—
|
|
|
(611,100
|
)
|
|
—
|
|
|
—
|
|
|
(611,100
|
)
|
|||||
Dividends paid
|
—
|
|
|
(13,291
|
)
|
|
—
|
|
|
—
|
|
|
(13,291
|
)
|
|||||
Proceeds from the issuance of common stock
|
—
|
|
|
2,222
|
|
|
—
|
|
|
—
|
|
|
2,222
|
|
|||||
Tax withholdings related to the exercise of stock appreciation rights
|
—
|
|
|
(12,489
|
)
|
|
—
|
|
|
—
|
|
|
(12,489
|
)
|
|||||
Repurchase of common stock
|
—
|
|
|
(12,179
|
)
|
|
—
|
|
|
—
|
|
|
(12,179
|
)
|
|||||
Other, net
|
—
|
|
|
(224
|
)
|
|
—
|
|
|
—
|
|
|
(224
|
)
|
|||||
Net cash (used in) provided by financing activities
|
—
|
|
|
(59,085
|
)
|
|
2,280
|
|
|
—
|
|
|
(56,805
|
)
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
|
1,467
|
|
|
—
|
|
|
1,467
|
|
|||||
|
|
|
|
|
|
|
|
|
|
||||||||||
Net increase (decrease) in cash and cash equivalents
|
—
|
|
|
19,413
|
|
|
(5,368
|
)
|
|
—
|
|
|
14,045
|
|
|||||
Cash and cash equivalents
, beginning of period
|
8
|
|
|
63,458
|
|
|
27,324
|
|
|
(8
|
)
|
|
90,782
|
|
|||||
Cash and cash equivalents
, end of period
|
$
|
8
|
|
|
$
|
82,871
|
|
|
$
|
21,956
|
|
|
$
|
(8
|
)
|
|
$
|
104,827
|
|
ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
|
•
|
a decrease in demand for our products;
|
•
|
competitive pricing and other competitive pressures;
|
•
|
our ability to implement our business strategy;
|
•
|
our ability to expand our business, including the location of available and suitable real estate for new store locations, the integration of any acquired businesses and the continued increase in supply chain capacity and efficiency;
|
•
|
our dependence on our suppliers to provide us with products that comply with safety and quality standards;
|
•
|
our ability to attract, develop and retain executives and other key employees, or Team Members;
|
•
|
the potential for fluctuations in the market price of our common stock and the resulting exposure to securities class action litigation;
|
•
|
the risk that our level of indebtedness may limit our operating flexibility or otherwise strain our liquidity and financial condition;
|
•
|
deterioration in general macro-economic conditions, including unemployment, inflation or deflation, consumer debt levels, high fuel and energy costs, higher tax rates or uncertain credit markets;
|
•
|
regulatory and legal risks, including being named as a defendant in administrative investigations or litigation, and the incurrence of legal fees and costs, the payment of fines or the payment of sums to settle litigation or administrative investigations or proceedings;
|
•
|
a security breach or other cyber security incident;
|
•
|
business interruptions due to the occurrence of natural disasters, extended periods of unfavorable weather, computer system malfunction, wars or acts of terrorism; and
|
•
|
the impact of global climate change or legal and regulatory responses to such change.
|
|
|
Q2 2017
|
|
Q2 2016
|
||||
GPI integration and store consolidation costs
|
|
$
|
0.06
|
|
|
$
|
0.14
|
|
GPI amortization of acquired intangible assets
|
|
$
|
0.08
|
|
|
$
|
0.08
|
|
Transformation expenses
|
|
$
|
0.27
|
|
|
$
|
—
|
|
•
|
Total sales during the
second
quarter of
2017
were
$2,263.7 million
, an increase of
0.3%
as compared to the
second
quarter of
2016
. This increase was primarily driven by new stores, while comparable store sales were flat.
|
•
|
Operating income for the
second
quarter of
2017
was
$146.7 million
, a decrease of
$70.0 million
as compared to the second quarter of
2016
. As a percentage of total sales, operating income was
6.5%
, a decrease of
312
basis points as compared to the second quarter of
2016
.
|
•
|
Inventories as of
July 15, 2017
decreased
$32.5 million
, or
0.8%
, from inventories as of
December 31, 2016
. This decrease was driven by our inventory optimization efforts.
|
•
|
We generated operating cash flow of
$267.3 million
for the
second
quarter of
2017
, an increase of
28.3%
as compared to the second quarter of 2016, primarily due to the decrease in inventories partially offset by higher net cash outflows associated with accounts payable.
|
|
AAP
|
|
AI
|
|
CARQUEST
|
|
WORLDPAC
|
|
Total
|
|||||
April 22, 2017
|
4,312
|
|
|
182
|
|
|
565
|
|
|
130
|
|
|
5,189
|
|
New
|
13
|
|
|
4
|
|
|
3
|
|
|
1
|
|
|
21
|
|
Closed
|
(1
|
)
|
|
—
|
|
|
(2
|
)
|
|
—
|
|
|
(3
|
)
|
Consolidated
(1)
|
—
|
|
|
—
|
|
|
(3
|
)
|
|
—
|
|
|
(3
|
)
|
Converted
(2)
|
57
|
|
|
—
|
|
|
(57
|
)
|
|
—
|
|
|
—
|
|
July 15, 2017
|
4,381
|
|
|
186
|
|
|
506
|
|
|
131
|
|
|
5,204
|
|
|
|
|
|
|
|
|
|
|
|
|||||
December 31, 2016
|
4,273
|
|
|
181
|
|
|
608
|
|
|
127
|
|
|
5,189
|
|
New
|
21
|
|
|
5
|
|
|
6
|
|
|
4
|
|
|
36
|
|
Closed
|
(5
|
)
|
|
—
|
|
|
(4
|
)
|
|
—
|
|
|
(9
|
)
|
Consolidated
(1)
|
(3
|
)
|
|
—
|
|
|
(9
|
)
|
|
—
|
|
|
(12
|
)
|
Converted
(2)
|
95
|
|
|
—
|
|
|
(95
|
)
|
|
—
|
|
|
—
|
|
July 15, 2017
|
4,381
|
|
|
186
|
|
|
506
|
|
|
131
|
|
|
5,204
|
|
|
|
Twelve Week Periods Ended
|
|
$ Increase/(Decrease)
|
|
Basis point Increase/(Decrease)
|
|||||||||||||||
($ in millions)
|
|
July 15, 2017
|
|
July 16, 2016
|
|
|
|||||||||||||||
Net sales
|
|
$
|
2,263.7
|
|
|
100.0
|
%
|
|
$
|
2,256.2
|
|
|
100.0
|
%
|
|
$
|
7.6
|
|
|
—
|
|
Cost of sales
|
|
1,270.6
|
|
|
56.1
|
|
|
1,245.9
|
|
|
55.2
|
|
|
24.7
|
|
|
91
|
|
|||
Gross profit
|
|
993.1
|
|
|
43.9
|
|
|
1,010.3
|
|
|
44.8
|
|
|
(17.2
|
)
|
|
(91
|
)
|
|||
SG&A expense
|
|
846.4
|
|
|
37.4
|
|
|
793.6
|
|
|
35.2
|
|
|
52.8
|
|
|
222
|
|
|||
Operating income
|
|
146.7
|
|
|
6.5
|
|
|
216.7
|
|
|
9.6
|
|
|
(70.0
|
)
|
|
(312
|
)
|
|||
Interest expense
|
|
(13.9
|
)
|
|
(0.6
|
)
|
|
(14.0
|
)
|
|
(0.6
|
)
|
|
0.1
|
|
|
1
|
|
|||
Other income, net
|
|
3.2
|
|
|
0.1
|
|
|
6.2
|
|
|
0.3
|
|
|
(3.0
|
)
|
|
(14
|
)
|
|||
Provision for income taxes
|
|
48.9
|
|
|
2.2
|
|
|
84.3
|
|
|
3.7
|
|
|
(35.4
|
)
|
|
(158
|
)
|
|||
Net income
|
|
$
|
87.0
|
|
|
3.8
|
%
|
|
$
|
124.6
|
|
|
5.5
|
%
|
|
$
|
(37.6
|
)
|
|
(168
|
)
|
|
|
Twenty-Eight Week Periods Ended
|
|
$ Increase/(Decrease)
|
|
Basis point Increase/(Decrease)
|
|||||||||||||||
($ in millions)
|
|
July 15, 2017
|
|
July 16, 2016
|
|
|
|||||||||||||||
Net sales
|
|
$
|
5,154.6
|
|
|
100.0
|
%
|
|
$
|
5,235.9
|
|
|
100.0
|
%
|
|
$
|
(81.4
|
)
|
|
—
|
|
Cost of sales
|
|
2,890.8
|
|
|
56.1
|
|
|
2,875.8
|
|
|
54.9
|
|
|
15.0
|
|
|
116
|
|
|||
Gross profit
|
|
2,263.8
|
|
|
43.9
|
|
|
2,360.1
|
|
|
45.1
|
|
|
(96.3
|
)
|
|
(116
|
)
|
|||
SG&A expense
|
|
1,937.3
|
|
|
37.6
|
|
|
1,872.5
|
|
|
35.8
|
|
|
64.8
|
|
|
182
|
|
|||
Operating income
|
|
326.5
|
|
|
6.3
|
|
|
487.7
|
|
|
9.3
|
|
|
(161.2
|
)
|
|
(298
|
)
|
|||
Interest expense
|
|
(32.4
|
)
|
|
(0.6
|
)
|
|
(33.0
|
)
|
|
(0.6
|
)
|
|
0.6
|
|
|
—
|
|
|||
Other income, net
|
|
8.0
|
|
|
0.2
|
|
|
9.4
|
|
|
0.2
|
|
|
(1.4
|
)
|
|
(2
|
)
|
|||
Provision for income taxes
|
|
107.1
|
|
|
2.1
|
|
|
180.7
|
|
|
3.5
|
|
|
(73.6
|
)
|
|
(137
|
)
|
|||
Net income
|
|
$
|
195.0
|
|
|
3.8
|
%
|
|
$
|
283.4
|
|
|
5.4
|
%
|
|
$
|
(88.4
|
)
|
|
(163
|
)
|
(in millions, except per share data)
|
|
Twelve Week Periods Ended
|
|
Twenty-Eight Week Periods Ended
|
||||||||||||
|
|
July 15, 2017
|
|
July 16, 2016
|
|
July 15, 2017
|
|
July 16, 2016
|
||||||||
Net income (GAAP)
|
|
$
|
87.0
|
|
|
$
|
124.6
|
|
|
$
|
195.0
|
|
|
$
|
283.4
|
|
SG&A adjustments:
|
|
|
|
|
|
|
|
|
||||||||
GPI integration and store consolidation costs
|
|
6.9
|
|
|
17.0
|
|
|
19.8
|
|
|
48.4
|
|
||||
GPI amortization of acquired intangible assets
|
|
9.1
|
|
|
9.5
|
|
|
21.4
|
|
|
22.1
|
|
||||
Transformation expenses
|
|
32.8
|
|
|
—
|
|
|
32.8
|
|
|
—
|
|
||||
Other income adjustment
(a)
|
|
(0.5
|
)
|
|
—
|
|
|
(8.9
|
)
|
|
—
|
|
||||
Provision for income taxes on adjustments
(b)
|
|
(18.4
|
)
|
|
(10.1
|
)
|
|
(24.7
|
)
|
|
(26.8
|
)
|
||||
Adjusted net income (Non-GAAP)
|
|
$
|
117.0
|
|
|
$
|
141.0
|
|
|
$
|
235.4
|
|
|
$
|
327.1
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per share (GAAP)
|
|
$
|
1.17
|
|
|
$
|
1.68
|
|
|
$
|
2.63
|
|
|
$
|
3.82
|
|
Adjustments, net of tax
|
|
0.41
|
|
|
0.22
|
|
|
0.55
|
|
|
0.59
|
|
||||
Adjusted EPS (Non-GAAP)
|
|
$
|
1.58
|
|
|
$
|
1.90
|
|
|
$
|
3.18
|
|
|
$
|
4.41
|
|
(a)
|
The adjustment to Other income for the
twelve
and
twenty-eight
weeks ended
July 15, 2017
relates to income recognized from an indemnification agreement associated with the acquisition of GPI.
|
(b)
|
The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective non-GAAP adjustments.
|
(in millions)
|
July 15, 2017
|
|
December 31, 2016
|
||||
Cash and cash equivalents
|
$
|
257.2
|
|
|
$
|
135.2
|
|
Long-term debt, including current portion
|
$
|
1,044.1
|
|
|
$
|
1,043.3
|
|
|
Twenty-Eight Week Periods Ended
|
||||||
(in millions)
|
July 15, 2017
|
|
July 16, 2016
|
||||
Cash flows provided by operating activities
|
$
|
267.3
|
|
|
$
|
208.4
|
|
Cash flows used in investing activities
|
(121.0
|
)
|
|
(139.1
|
)
|
||
Cash flows used in financing activities
|
(26.8
|
)
|
|
(56.8
|
)
|
||
Effect of exchange rate changes on cash
|
2.6
|
|
|
1.5
|
|
||
Net increase in cash and cash equivalents
|
$
|
122.1
|
|
|
$
|
14.0
|
|
ITEM 2.
|
UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS
|
(in thousands, except per share data)
|
|
Total Number of Shares Purchased
(1)
|
|
Average
Price Paid
per Share
(1)
|
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or
Programs
(2)
|
|
Maximum Dollar Value of Shares that May Yet Be Purchased Under the Plans or Programs
(2)
|
||||||
April 23, 2017 to May 20, 2017
|
|
198
|
|
|
$
|
152.96
|
|
|
—
|
|
|
$
|
415,092
|
|
May 21, 2017 to June 17, 2017
|
|
1,035
|
|
|
136.77
|
|
|
—
|
|
|
415,092
|
|
||
June 18, 2017 to July 15, 2017
|
|
63
|
|
|
152.75
|
|
|
—
|
|
|
415,092
|
|
||
Total
|
|
1,296
|
|
|
$
|
140.02
|
|
|
—
|
|
|
$
|
415,092
|
|
(1)
|
We repurchased
1,296
shares of our common stock, at an aggregate cost of
$0.2 million
, or an average purchase price of
$140.02
per share, in connection with the net settlement of shares issued as a result of the vesting of restricted stock units during the
twelve
weeks ended
July 15, 2017
.
|
(2)
|
Our
$500 million
stock repurchase program was authorized by our Board of Directors on May 14, 2012.
|
ITEM 6.
|
EXHIBITS
|
|
|
Incorporated by Reference
|
Filed
|
|||
Exhibit No.
|
Exhibit Description
|
Form
|
Exhibit
|
Filing Date
|
Herewith
|
|
8-K
|
3.1
|
|
5/31/2017
|
|
||
8-K
|
3.2
|
|
5/31/2017
|
|
||
|
|
|
|
X
|
||
|
|
|
|
X
|
||
|
|
|
|
X
|
||
101.INS
|
XBRL Instance Document
|
|
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document
|
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
|
ADVANCE AUTO PARTS, INC.
|
|
|
|
|
August 15, 2017
|
By:
|
/s/ Jeffrey W. Shepherd
|
|
Jeffrey W. Shepherd
Senior Vice President, Controller
and Chief Accounting Officer
|
1 Year Advance Auto Parts Chart |
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