Condensed Consolidating Financial Statements (Tables)

12 Months Ended

Dec. 28, 2019

Condensed Consolidating Financial Statements [Abstract]

Condensed Consolidating Balance Sheets

Condensed Consolidating Balance Sheet

As of December 28, 2019

(in thousands)	Advance Auto Parts, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—	$	285,100	$	133,565	$	—		$	418,665
Receivables, net	1,529		646,686		41,254		—			689,469
Inventories	—		4,233,562		198,606		—			4,432,168
Other current assets	12,710		150,316		3,442		(11,227		)	155,241
Total current assets	14,239		5,315,664		376,867		(11,227		)	5,695,543
Property and equipment, net of accumulated depreciation	54		1,423,920		9,239		—			1,433,213
Operating lease right-of-use assets	—		2,325,170		40,155		—			2,365,325
Goodwill	—		943,364		48,876		—			992,240
Intangible assets, net	—		670,386		39,370		—			709,756
Other assets	2,358		38,311		14,137		(2,358		)	52,448
Investment in subsidiaries	4,445,209		550,910		—		(4,996,119		)	—
Intercompany note receivable	749,354		—		—		(749,354		)	—
Due from intercompany, net	—		571,981		342,832		(914,813		)	—
	$	5,211,214	$	11,839,706	$	871,476	$	(6,673,871	)	$	11,248,525
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	—	$	3,231,927	$	190,060	$	—		$	3,421,987
Accrued expenses	—		523,518		23,572		(11,227		)	535,863
Other current liabilities	—		508,811		11,041		—			519,852
Total current liabilities	—		4,264,256		224,673		(11,227		)	4,477,702
Long-term debt	747,320		—		—		—			747,320
Noncurrent operating lease liabilities	—		1,986,039		31,120		—			2,017,159
Deferred income taxes	—		320,822		15,549		(2,358		)	334,013
Other long-term liabilities	—		74,026		49,224		—			123,250
Intercompany note payable	—		749,354		—		(749,354		)	—
Due to intercompany, net	914,813		—		—		(914,813		)	—
Commitments and contingencies
Stockholders' equity	3,549,081		4,445,209		550,910		(4,996,119		)	3,549,081
	$	5,211,214	$	11,839,706	$	871,476	$	(6,673,871	)	$	11,248,525

Condensed Consolidating Balance Sheet

As of December 29, 2018

(in thousands)	Advance Auto Parts, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	—	$	785,605	$	110,922		$	—		$	896,527
Receivables, net	—		590,269		34,703			—			624,972
Inventories	—		4,182,973		179,574			—			4,362,547
Other current assets	3,103		191,318		3,987			—			198,408
Total current assets	3,103		5,750,165		329,186			—			6,082,454
Property and equipment, net of accumulated depreciation	77		1,359,980		8,928			—			1,368,985
Goodwill	—		943,364		46,873			—			990,237
Intangible assets, net	—		510,586		40,007			—			550,593
Other assets	2,408		47,815		564			(2,408		)	48,379
Investment in subsidiaries	3,945,862		474,772		—			(4,420,634		)	—
Intercompany note receivable	1,048,993		—		—			(1,048,993		)	—
Due from intercompany, net	—		102,886		297,580			(400,466		)	—
	$	5,000,443	$	9,189,568	$	723,138		$	(5,872,501	)	$	9,040,648
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	—	$	2,954,632	$	218,158		$	—		$	3,172,790
Accrued expenses	3,444		603,460		16,237			—			623,141
Other current liabilities	—		91,994		(1,975		)	—			90,019
Total current liabilities	3,444		3,650,086		232,420			—			3,885,950
Long-term debt	1,045,720		—		—			—			1,045,720
Deferred income taxes	—		306,127		14,634			(2,408		)	318,353
Other long-term liabilities	—		238,500		1,312			—			239,812
Intercompany note payable	—		1,048,993		—			(1,048,993		)	—
Due to intercompany, net	400,466		—		—			(400,466		)	—
Commitments and contingencies
Stockholders' equity	3,550,813		3,945,862		474,772			(4,420,634		)	3,550,813
	$	5,000,443	$	9,189,568	$	723,138		$	(5,872,501	)	$	9,040,648

Condensed Consolidating Statements of Operations

Condensed Consolidating Statement of Operations

For the Year Ended December 28, 2019

(in thousands)	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	9,342,240		$	568,522		$	(201,759	)	$	9,709,003
Cost of sales, including purchasing and warehousing costs	—			5,252,418			336,110			(134,271		)	5,454,257
Gross profit	—			4,089,822			232,412			(67,488		)	4,254,746
Selling, general and administrative expenses	28,216			3,503,529			160,717			(114,896		)	3,577,566
Operating (loss) income	(28,216		)	586,293			71,695			47,408			677,180
Other, net:
Interest expense	(37,366		)	(2,310		)	(222		)	—			(39,898		)
Other income (expense), net	66,842			(16,274		)	(2,695		)	(47,409		)	464
Total other, net	29,476			(18,584		)	(2,917		)	(47,409		)	(39,434		)
Income before provision for income taxes	1,260			567,709			68,778			(1		)	637,746
Provision for income taxes	2,429			131,885			16,537			(1		)	150,850
(Loss) income before equity in earnings of subsidiaries	(1,169		)	435,824			52,241			—			486,896
Equity in earnings of subsidiaries	488,065			52,241			—			(540,306		)	—
Net income	$	486,896		$	488,065		$	52,241		$	(540,306	)	$	486,896

Condensed Consolidating Statement of Operations

For the Year Ended December 29, 2018

(in thousands)	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	9,225,772		$	519,883		$	(165,101	)	$	9,580,554
Cost of sales, including purchasing and warehousing costs	—			5,169,076			357,166			(165,101		)	5,361,141
Gross profit	—			4,056,696			162,717			—			4,219,413
Selling, general and administrative expenses	20,235			3,547,645			98,412			(51,154		)	3,615,138
Operating (loss) income	(20,235		)	509,051			64,305			51,154			604,275
Other, net:
Interest (expense) income	(52,253		)	(4,336		)	1			—			(56,588		)
Other income (expense), net	73,174			(6,961		)	(7,482		)	(51,154		)	7,577
Total other, net	20,921			(11,297		)	(7,481		)	(51,154		)	(49,011		)
Income before provision for income taxes	686			497,754			56,824			—			555,264
Provision for income taxes	2,519			117,015			11,883			—			131,417
(Loss) income before equity in earnings of subsidiaries	(1,833		)	380,739			44,941			—			423,847
Equity in earnings of subsidiaries	425,680			44,941			—			(470,621		)	—
Net income	$	423,847		$	425,680		$	44,941		$	(470,621	)	$	423,847

Condensed Consolidating Statement of Operations

For the Year Ended December 30, 2017

(in thousands)	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	9,034,790		$	550,450		$	(211,456	)	$	9,373,784
Cost of sales, including purchasing and warehousing costs	—			5,107,063			393,128			(211,456		)	5,288,735
Gross profit	—			3,927,727			157,322			—			4,085,049
Selling, general and administrative expenses	30,478			3,453,406			82,155			(51,202		)	3,514,837
Operating (loss) income	(30,478		)	474,321			75,167			51,202			570,212
Other, net:
Interest (expense) income	(52,305		)	(6,496		)	—			—			(58,801		)
Other income (expense), net	83,840			(17,729		)	(6,061		)	(51,202		)	8,848
Total other, net	31,535			(24,225		)	(6,061		)	(51,202		)	(49,953		)
Income before provision for income taxes	1,057			450,096			69,106			—			520,259
Provision for income taxes	641			32,623			11,490			—			44,754
Income before equity in earnings of subsidiaries	416			417,473			57,616			—			475,505
Equity in earnings of subsidiaries	475,089			57,616			—			(532,705		)	—
Net income	$	475,505		$	475,089		$	57,616		$	(532,705	)	$	475,505

Condensed Consolidating Statements of Comprehensive Income

Condensed Consolidating Statement of Comprehensive Income

For the Year Ended December 28, 2019

(in thousands)	Advance Auto Parts, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income	$	486,896	$	488,065		$	52,241	$	(540,306	)	$	486,896
Other comprehensive income:
Changes in net unrecognized other postretirement benefit costs	—		(142		)	—		—			(142		)
Currency translation adjustments	—		—			9,766		—			9,766
Equity in other comprehensive income of subsidiaries	9,624		9,766			—		(19,390		)	—
Total other comprehensive income	9,624		9,624			9,766		(19,390		)	9,624
Comprehensive income	$	496,520	$	497,689		$	62,007	$	(559,696	)	$	496,520

Condensed Consolidating Statement of Comprehensive Income

For the Year Ended December 29, 2018

(in thousands)	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	423,847		$	425,680		$	44,941		$	(470,621	)	$	423,847
Other comprehensive loss:
Changes in net unrecognized other postretirement benefit costs	—			(294		)	—			—			(294		)
Currency translation adjustments	—			—			(18,945		)	—			(18,945		)
Equity in other comprehensive loss of subsidiaries	(19,239		)	(18,945		)	—			38,184			—
Total other comprehensive loss	(19,239		)	(19,239		)	(18,945		)	38,184			(19,239		)
Comprehensive income	$	404,608		$	406,441		$	25,996		$	(432,437	)	$	404,608

Condensed Consolidating Statement of Comprehensive Income

For the Year Ended December 30, 2017

(in thousands)	Advance Auto Parts, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income	$	475,505	$	475,089		$	57,616	$	(532,705	)	$	475,505
Other comprehensive income:
Changes in net unrecognized other postretirement benefit costs	—		(194		)	—		—			(194		)
Currency translation adjustments	—		—			14,941		—			14,941
Equity in other comprehensive income of subsidiaries	14,747		14,941			—		(29,688		)	—
Total other comprehensive income	14,747		14,747			14,941		(29,688		)	14,747
Comprehensive income	$	490,252	$	489,836		$	72,557	$	(562,393	)	$	490,252

Condensed Consolidating Cash Flow Statements

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 28, 2019

(in thousands)	Advance Auto Parts, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations		Consolidated
Net cash provided by operating activities	$	—	$	845,364		$	21,545		$	—	$	866,909
Cash flows from investing activities:
Purchases of property and equipment	—		(268,342		)	(1,787		)	—		(270,129		)
Purchase of an indefinite-lived intangible asset	—		(201,519		)	—			—		(201,519		)
Proceeds from sales of property and equipment	—		8,708			1			—		8,709
Net cash used in investing activities	—		(461,153		)	(1,786		)	—		(462,939		)
Cash flows from financing activities:
(Decrease) increase in bank overdrafts	—		(61,902		)	2,563			—		(59,339		)
Redemption of senior unsecured notes	—		(310,047		)	—			—		(310,047		)
Dividends paid	—		(17,185		)	—			—		(17,185		)
Proceeds from the issuance of common stock	—		3,334			—			—		3,334
Repurchases of common stock	—		(498,435		)	—			—		(498,435		)
Other, net	—		(481		)	—			—		(481		)
Net cash (used in) provided by financing activities	—		(884,716		)	2,563			—		(882,153		)
Effect of exchange rate changes on cash	—		—			321			—		321
Net (decrease) increase in cash and cash equivalents	—		(500,505		)	22,643			—		(477,862		)
Cash and cash equivalents, beginning of period	—		785,605			110,922			—		896,527
Cash and cash equivalents, end of period	$	—	$	285,100		$	133,565		$	—	$	418,665

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 29, 2018

(in thousands)	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	—		$	753,948		$	57,080		$	—		$	811,028
Cash flows from investing activities:
Purchases of property and equipment	—			(192,156		)	(1,559		)	—			(193,715		)
Proceeds from sales of property and equipment	—			1,842			46			—			1,888
Other, net	—			—			—			—			—
Net cash used in investing activities	—			(190,314		)	(1,513		)	—			(191,827		)
Cash flows from financing activities:
Increase (decrease) in bank overdrafts	—			35,280			(3,266		)	—			32,014
Borrowings under credit facilities	—			—			—			—			—
Payments on credit facilities	—			—			—			—			—
Dividends paid	—			(17,819		)	—			—			(17,819		)
Proceeds from the issuance of common stock	—			3,200			—			—			3,200
Repurchases of common stock	—			(281,354		)	—			—			(281,354		)
Other, net	(23		)	44			—			23			44
Net cash used in financing activities	(23		)	(260,649		)	(3,266		)	23			(263,915		)
Effect of exchange rate changes on cash	—			—			(5,696		)	—			(5,696		)
Net (decrease) increase in cash and cash equivalents	(23		)	302,985			46,605			23			349,590
Cash and cash equivalents, beginning of period	23			482,620			64,317			(23		)	546,937
Cash and cash equivalents, end of period	$	—		$	785,605		$	110,922		$	—		$	896,527

Condensed Consolidating Statement of Cash Flows

For the Year Ended December 30, 2017

(in thousands)	Advance Auto Parts, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	—	$	593,091		$	7,714		$	—		$	600,805
Cash flows from investing activities:
Purchases of property and equipment	—		(187,993		)	(1,765		)	—			(189,758		)
Proceeds from sales of property and equipment	—		11,085			14			—			11,099
Other, net	—		480			(460		)	—			20
Net cash used in investing activities	—		(176,428		)	(2,211		)	—			(178,639		)
Cash flows from financing activities:
Increase (decrease) in bank overdrafts	—		16,290			(2,286		)	—			14,004
Borrowings under credit facilities	—		534,400			—			—			534,400
Payments on credit facilities	—		(534,400		)	—			—			(534,400		)
Dividends paid	—		(17,854		)	—			—			(17,854		)
Proceeds from the issuance of common stock	—		4,076			—			—			4,076
Repurchases of common stock	—		(6,498		)	—			—			(6,498		)
Other, net	1		(8,600		)	—			(1		)	(8,600		)
Net cash provided by (used in) financing activities	1		(12,586		)	(2,286		)	(1		)	(14,872		)
Effect of exchange rate changes on cash	—		—			4,465			—			4,465
Net increase in cash and cash equivalents	1		404,077			7,682			(1		)	411,759
Cash and cash equivalents, beginning of period	22		78,543			56,635			(22		)	135,178
Cash and cash equivalents, end of period	$	23	$	482,620		$	64,317		$	(23	)	$	546,937