ADVANCE AUTO PARTS INC, 10-K filed on 3/3/2015
Annual Report
Document and Entity Information Document (USD $)
12 Months Ended
Jan. 3, 2015
Feb. 26, 2015
Jul. 11, 2014
Document Information [Line Items]
 
 
 
Entity Registrant Name
Advance Auto Parts Inc 
 
 
Entity Central Index Key
0001158449 
 
 
Current Fiscal Year End Date
--01-03 
 
 
Entity Filer Category
Large Accelerated Filer 
 
 
Document Type
10-K 
 
 
Document Period End Date
Jan. 03, 2015 
 
 
Document Fiscal Year Focus
2014 
 
 
Document Fiscal Period Focus
FY 
 
 
Amendment Flag
false 
 
 
Entity Common Stock, Shares Outstanding
 
73,140,749 
 
Entity Well-known Seasoned Issuer
Yes 
 
 
Entity Voluntary Filers
No 
 
 
Entity Current Reporting Status
No 
 
 
Entity Public Float
 
 
$ 9,680,305,678 
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jan. 3, 2015
Dec. 28, 2013
Current assets:
 
 
Cash and cash equivalents
$ 104,671 
$ 1,112,471 
Receivables, net
579,825 
277,595 
Inventories, net
3,936,955 
2,556,557 
Other current assets
119,589 
42,761 
Total current assets
4,741,040 
3,989,384 
Property and equipment, net of accumulated depreciation
1,432,030 
1,283,970 
Assets held for sale
615 
2,064 
Goodwill
995,426 
199,835 
Intangible assets, net
748,125 
49,872 
Other assets, net
45,122 
39,649 
Assets, Total
7,962,358 
5,564,774 
Current liabilities:
 
 
Current portion of long-term debt
582 
916 
Accounts payable
3,095,365 
2,180,614 
Accrued expenses
520,673 
428,625 
Other current liabilities
126,446 
154,630 
Total current liabilities
3,743,066 
2,764,785 
Long-term debt
1,636,311 
1,052,668 
Other long-term liabilities
580,069 
231,116 
Commitments and Contingencies
   
   
Stockholders' equity:
 
 
Preferred stock, nonvoting, $0.0001 par value
0 
0 
Common stock, voting, $0.0001 par value
7 
7 
Additional paid-in capital
562,945 
531,293 
Treasury stock, at cost
(113,044)
(107,890)
Accumulated other comprehensive income (loss)
(12,337)
3,683 
Retained earnings
1,565,341 
1,089,112 
Total stockholders' equity
2,002,912 
1,516,205 
Liabilities and Stockholders' Equity, Total
$ 7,962,358 
$ 5,564,774 
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $)
In Thousands, except Per Share data, unless otherwise specified
Jan. 3, 2015
Dec. 28, 2013
Accumulated Depreciation, Property and Equipment
$ 1,372,359 
$ 1,255,474 
Preferred stock, non-voting, par value
$ 0.0001 
$ 0.0001 
Preferred Stock, Shares Authorized
10,000 
10,000 
Preferred Stock, Shares Issued
0 
0 
Preferred Stock, Shares Outstanding
0 
0 
Common stock, voting, par value
$ 0.0001 
$ 0.0001 
Common Stock, Shares Authorized
200,000 
200,000 
Common Stock, Shares, Issued
74,493 
74,224 
Common Stock, Shares, Outstanding
73,074 
72,840 
Treasury Stock, Shares
1,419 
1,384 
CONSOLIDATED STATEMENTS OF OPERATIONS (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended
Jan. 3, 2015
Oct. 4, 2014
Jul. 12, 2014
Dec. 28, 2013
Oct. 5, 2013
Jul. 13, 2013
Apr. 19, 2014
Apr. 20, 2013
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Net sales
$ 2,237,209 
$ 2,289,456 
$ 2,347,697 
$ 1,408,813 
$ 1,520,144 
$ 1,549,553 
$ 2,969,499 
$ 2,015,304 
$ 9,843,861 
$ 6,493,814 
$ 6,205,003 
Cost of sales, including purchasing and warehousing costs
 
 
 
 
 
 
 
 
5,390,248 
3,241,668 
3,106,967 
Gross profit
1,003,941 
1,034,442 
1,062,108 
701,777 
762,940 
779,223 
1,353,122 
1,008,206 
4,453,613 
3,252,146 
3,098,036 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
3,601,903 
2,591,828 
2,440,721 
Operating income
 
 
 
 
 
 
 
 
851,710 
660,318 
657,315 
Interest expense
 
 
 
 
 
 
 
 
(73,408)
(36,618)
(33,841)
Other income, net
 
 
 
 
 
 
 
 
3,092 
2,698 
600 
Total other, net
 
 
 
 
 
 
 
 
(70,316)
(33,920)
(33,241)
Income before provision for income taxes
 
 
 
 
 
 
 
 
781,394 
626,398 
624,074 
Provision for income taxes
 
 
 
 
 
 
 
 
287,569 
234,640 
236,404 
Net income
$ 84,434 
$ 122,177 
$ 139,488 
$ 49,267 
$ 103,830 
$ 116,871 
$ 147,726 
$ 121,790 
$ 493,825 
$ 391,758 
$ 387,670 
Basic earnings per common share
$ 1.15 
$ 1.67 
$ 1.91 
$ 0.68 
$ 1.42 
$ 1.60 
$ 2.02 
$ 1.66 
$ 6.75 
$ 5.36 
$ 5.29 
Diluted earnings per common share
$ 1.15 
$ 1.66 
$ 1.89 
$ 0.67 
$ 1.42 
$ 1.59 
$ 2.01 
$ 1.65 
$ 6.71 
$ 5.32 
$ 5.22 
Dividends declared per common share
 
 
 
 
 
 
 
 
$ 0.24 
$ 0.24 
$ 0.24 
Weighted average common shares outstanding
 
 
 
 
 
 
 
 
72,932 
72,930 
73,091 
Weighted average common shares outstanding - assuming dilution
 
 
 
 
 
 
 
 
73,414 
73,414 
74,062 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Net income
$ 493,825 
$ 391,758 
$ 387,670 
Changes in net unrecognized other postretirement benefit costs, net of tax
(752)
(438)
(391)
Postretirement benefit plan amendment
0 
1,454 
0 
Unrealized gain (loss) on hedge arrangements, net of tax
0 
0 
254 
Currency translation adjustments
(15,268)
0 
0 
Total other comprehensive income (loss)
(16,020)
1,016 
(137)
Comprehensive income
$ 477,805 
$ 392,774 
$ 387,533 
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Statement of Comprehensive Income [Abstract]
 
 
 
Changes in net unrecognized other postretirement benefit costs, tax
$ 483 
$ 503 
$ 252 
Postretirement benefit plan amendment, tax
0 
904 
0 
Unrealized gain (loss) on hedge arrangement, tax
$ 0 
$ 0 
$ 163 
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (USD $)
In Thousands
Total
Preferred Stock [Member]
Common Stock [Member]
Additional Paid-In Capital [Member]
Treasury Stock, at cost [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Retained Earnings [Member]
Balance at Dec. 31, 2011
$ 847,914 
$ 0 
$ 11 
$ 500,237 
$ (1,644,767)
$ 2,804 
$ 1,989,629 
Balance (in shares) at Dec. 31, 2011
 
0 
106,537 
 
33,738 
 
 
Net income
387,670 
 
 
 
 
 
387,670 
Total other comprehensive income (loss),
(137)
 
 
 
 
(137)
 
Issuance of shares upon the exercise of stock options and stock appreciation rights
5,720 
 
   
5,720 
 
 
 
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares)
 
 
900 
 
 
 
 
Tax withholdings related to the exercise of stock appreciation rights
(26,677)
 
 
(26,677)
 
 
 
Tax benefit from share-based compensation
22,924 
 
 
22,924 
 
 
 
Restricted stock and restricted stock units vested
0 
 
 
 
 
 
 
Restricted stock and restricted stock units vested (in shares)
 
 
(2)
 
 
 
 
Share-based compensation
15,236 
 
 
15,236 
 
 
 
Stock issued under employee stock purchase plan
2,266 
 
 
2,266 
 
 
 
Stock issued under employee stock purchase plan (in shares)
 
 
34 
 
 
 
 
Repurchase of common stock
(27,095)
 
 
 
(27,095)
 
 
Repurchase of common stock (in shares)
 
 
 
 
348 
 
 
Retirement of treasury stock
0 
 
(4)
 
1,644,767 
 
(1,644,763)
Retirement of treasury stock (in shares)
 
 
(33,738)
 
(33,738)
 
 
Cash dividends
(17,636)
 
 
 
 
 
(17,636)
Other
509 
 
 
509 
 
 
 
Balance at Dec. 29, 2012
1,210,694 
0 
7 
520,215 
(27,095)
2,667 
714,900 
Balance (in shares) at Dec. 29, 2012
 
0 
73,731 
 
348 
 
 
Net income
391,758 
 
 
 
 
 
391,758 
Total other comprehensive income (loss),
1,016 
 
 
 
 
1,016 
 
Issuance of shares upon the exercise of stock options and stock appreciation rights
1,903 
 
 
1,903 
 
 
 
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares)
 
 
480 
 
 
 
 
Tax withholdings related to the exercise of stock appreciation rights
(21,856)
 
 
(21,856)
 
 
 
Tax benefit from share-based compensation
16,132 
 
 
16,132 
 
 
 
Restricted stock and restricted stock units vested
0 
 
 
 
 
 
 
Restricted stock and restricted stock units vested (in shares)
 
 
(10)
 
 
 
 
Share-based compensation
13,191 
 
 
13,191 
 
 
 
Stock issued under employee stock purchase plan
1,679 
 
 
1,679 
 
 
 
Stock issued under employee stock purchase plan (in shares)
 
 
23 
 
 
 
 
Repurchase of common stock
(80,795)
 
 
 
(80,795)
 
 
Repurchase of common stock (in shares)
 
 
 
 
1,036 
 
 
Cash dividends
(17,546)
 
 
 
 
 
(17,546)
Other
29 
 
 
29 
 
 
 
Balance at Dec. 28, 2013
1,516,205 
0 
7 
531,293 
(107,890)
3,683 
1,089,112 
Balance (in shares) at Dec. 28, 2013
72,840 
0 
74,224 
 
1,384 
 
 
Net income
493,825 
 
 
 
 
 
493,825 
Total other comprehensive income (loss),
(16,020)
 
 
 
 
(16,020)
 
Issuance of shares upon the exercise of stock options and stock appreciation rights
1,874 
 
 
1,874 
 
 
 
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares)
 
 
162 
 
 
 
 
Tax withholdings related to the exercise of stock appreciation rights
(7,102)
 
 
(7,102)
 
 
 
Tax benefit from share-based compensation
10,471 
 
 
10,471 
 
 
 
Restricted stock and restricted stock units vested
0 
 
 
 
 
 
 
Restricted stock and restricted stock units vested (in shares)
 
 
68 
 
 
 
 
Share-based compensation
21,705 
 
 
21,705 
 
 
 
Stock issued under employee stock purchase plan
4,660 
 
 
4,660 
 
 
 
Stock issued under employee stock purchase plan (in shares)
 
 
39 
 
 
 
 
Repurchase of common stock
(5,154)
 
 
 
(5,154)
 
 
Repurchase of common stock (in shares)
 
 
 
 
35 
 
 
Cash dividends
(17,596)
 
 
 
 
 
(17,596)
Other
44 
 
 
44 
 
 
 
Balance at Jan. 03, 2015
$ 2,002,912 
$ 0 
$ 7 
$ 562,945 
$ (113,044)
$ (12,337)
$ 1,565,341 
Balance (in shares) at Jan. 03, 2015
73,074 
0 
74,493 
 
1,419 
 
 
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical)
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Statement of Stockholders' Equity (Parenthetical) [Abstract]
 
 
 
Dividends declared per common share
$ 0.24 
$ 0.24 
$ 0.24 
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Cash flows from operating activities:
 
 
 
Net income
$ 493,825 
$ 391,758 
$ 387,670 
Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
Depreciation and amortization
284,693 
207,795 
189,544 
Share-based compensation
21,705 
13,191 
15,236 
Loss on property and equipment, net
13,281 
1,599 
2,699 
Other
2,631 
1,679 
1,582 
Provision (benefit) for deferred income taxes
48,468 
(2,237)
26,893 
Excess tax benefit from share-based compensation
(10,487)
(16,320)
(23,099)
Net Increase Decrease in Operating Capital, net of effect from acquisition of businesses
 
 
 
Receivables, net
(48,209)
(32,428)
(89,482)
Inventories, net
(227,657)
(203,513)
(260,298)
Other assets
(63,482)
11,011 
8,213 
Accounts payable
216,412 
113,497 
376,631 
Accrued expenses
(28,862)
63,346 
40,936 
Other liabilities
6,673 
(4,128)
8,756 
Net cash provided by operating activities
708,991 
545,250 
685,281 
Cash flows from investing activities:
 
 
 
Purchases of property and equipment
(228,446)
(195,757)
(271,182)
Business acquisitions, net of cash acquired
(2,060,783)
(186,137)
(8,369)
Sale of certain assets of acquired business
0 
19,042 
0 
Proceeds from sales of property and equipment
992 
745 
6,573 
Net Cash (used in) provided by Investing Activities
(2,288,237)
(362,107)
(272,978)
Cash flows from financing activities:
 
 
 
Increase (decrease) in bank overdrafts
16,219 
(2,926)
(7,459)
Issuance of senior unsecured notes
0 
448,605 
299,904 
Payment of debt related costs
0 
(8,815)
(2,942)
Borrowings under credit facilities
2,238,200 
0 
58,500 
Payments on credit facilities
(1,654,800)
0 
(173,500)
Dividends paid
(17,580)
(17,574)
(17,596)
Proceeds from the issuance of common stock, primarily exercise of stock options
6,578 
3,611 
8,495 
Tax withholdings related to the exercise of stock appreciation rights
(7,102)
(21,856)
(26,677)
Excess tax benefit from share-based compensation
10,487 
16,320 
23,099 
Repurchase of common stock
(5,154)
(80,795)
(27,095)
Contingent consideration related to previous business acquisition
(10,047)
(4,726)
(10,911)
Other
(890)
(627)
4,089 
Net cash provided by (used in) financing activities
575,911 
331,217 
127,907 
Effect of exchange rate changes on cash
(4,465)
0 
0 
Net (decrease) increase in cash and cash equivalents
(1,007,800)
514,360 
540,210 
Cash and cash equivalents, beginning of period
1,112,471 
598,111 
57,901 
Cash and cash equivalents, end of period
104,671 
1,112,471 
598,111 
Supplemental cash flow information:
 
 
 
Interest paid
71,109 
34,735 
27,250 
Income tax payments
268,624 
219,424 
162,677 
Non-cash transactions:
 
 
 
Accrued purchases of property and equipment
28,877 
20,714 
26,142 
Retirement of common stock
0 
0 
1,644,767 
Changes in other comprehensive income from post retirement benefits
(752)
1,016 
(137)
Declared but unpaid cash dividends
$ 4,384 
$ 4,368 
$ 4,396 
Organization and Description of Business
Organization and Description of Business
Organization and Description of Business:

Advance Auto Parts, Inc. (“Advance”) conducts all of its operations through its wholly owned subsidiary, Advance Stores Company, Incorporated (“Stores”), and its subsidiaries (collectively, the “Company”), all of which are 100% owned. As of January 3, 2015, the Company's operations are comprised of 5,261 stores and 111 distribution branches, which operate in the United States, Canada, Puerto Rico and the U.S. Virgin Islands primarily under the trade names “Advance Auto Parts,” "Carquest," "Autopart International" and "Worldpac." As further described in Note 4, the "Carquest" and "Worldpac" brands were acquired on January 2, 2014 as part of the acquisition of General Parts International, Inc. ("GPI"). The Company serves both do-it-for-me, or Commercial, and do-it-yourself, or DIY, customers and offers a broad selection of brand name, original equipment manufacturer ("OEM") and proprietary automotive replacement parts, accessories, and maintenance items primarily for domestic and imported cars and light trucks. The Company offers delivery service to its Commercial customers’ places of business, including independent garages, service stations and auto dealers, utilizing a fleet of vehicles to deliver product from its 4,981 store locations with delivery service.
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies:

Accounting Period

The Company’s fiscal year ends on the Saturday nearest the end of December. Fiscal year 2014 contained 53 weeks and fiscal years 2013 and 2012 each contained 52 weeks. The additional week of operations for Fiscal 2014 was included in the Company's fourth quarter. All references herein for the years 2014, 2013 and 2012 represent the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively.

Principles of Consolidation

The consolidated financial statements include the accounts of Advance and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.

Cash, Cash Equivalents and Bank Overdrafts

Cash and cash equivalents consist of cash in banks and money market funds with original maturities of three months or less. Included in cash equivalents are credit card and debit card receivables from banks, which generally settle within two to four business days. Credit and debit card receivables included in Cash and cash equivalents as of January 3, 2015 and December 28, 2013 were $28,843 and $28,828, respectively. Bank overdrafts consist of outstanding checks not yet presented to a bank for settlement, net of cash held in accounts with right of offset. Bank overdrafts of $22,015 and $5,796 are included in Other current liabilities as of January 3, 2015 and December 28, 2013, respectively.

Receivables

Receivables, net consist primarily of receivables from Commercial customers and vendors. The Company grants credit to certain Commercial customers who meet the Company’s pre-established credit requirements. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s Commercial customers to make required payments. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Concentrations of credit risk with respect to these receivables are limited because the Company’s customer base consists of a large number of small customers, spreading the credit risk across a broad base. The Company also controls this credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures.

The Company’s vendor receivables are established as it receives concessions from its vendors through a variety of programs and arrangements, including allowances for new stores and warranties, volume purchase rebates and co-operative advertising. Amounts receivable from vendors also include amounts due to the Company for changeover merchandise and product returns. The Company regularly reviews vendor receivables for collectibility and assesses the need for a reserve for uncollectible amounts based on an evaluation of the vendors’ financial positions and corresponding abilities to meet financial obligations. The Company’s allowance for doubtful accounts related to vendor receivables is not significant.

Inventory

Inventory amounts are stated at the lower of cost or market. The cost of the Company’s merchandise inventory is primarily determined using the last-in, first-out (“LIFO”) method. Under the LIFO method, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs relating to prices paid in prior years.

Vendor Incentives

The Company receives incentives in the form of reductions to amounts owed and/or payments from vendors related to cooperative advertising allowances, volume rebates and other promotional considerations. Many of these incentives are under long-term agreements in excess of one year, while others are negotiated on an annual basis or less (short-term). Cooperative advertising allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an offset to selling, general and administrative expenses, or SG&A, when the cost is incurred. Volume rebates and cooperative advertising allowances not meeting the requirements for offset in SG&A are recorded initially as a reduction to inventory as they are earned based on inventory purchases. These deferred amounts are included as a reduction to cost of sales as the inventory is sold. Total deferred vendor incentives included as a reduction of Inventory was $179,785 and $111,304 as of January 3, 2015 and December 28, 2013, respectively.

Similarly, the Company recognizes other promotional incentives earned under long-term agreements not specifically related to volume of purchases as a reduction to cost of sales. However, these incentives are not deferred as a reduction of inventory and are recognized based on the cumulative net purchases as a percentage of total estimated net purchases over the life of the agreement. Short-term incentives (terms less than one year) are generally recognized as a reduction to cost of sales over the duration of any short-term agreements.

Amounts received or receivable from vendors that are not yet earned are reflected as deferred revenue in the accompanying consolidated balance sheets. Management’s estimate of the portion of deferred revenue that will be realized within one year of the balance sheet date has been included in Other current liabilities in the accompanying consolidated balance sheets. Earned amounts that are receivable from vendors are included in Receivables and Other assets on the accompanying consolidated balance sheets.

Advertising Costs

The Company expenses advertising costs as incurred. Advertising expense, net of vendor promotional funds, was $96,463, $69,116 and $83,871 in 2014, 2013 and 2012, respectively. Vendor promotional funds, which reduced advertising expense, amounted to $21,814 and $18,622 and $11,445 in 2014, 2013 and 2012, respectively.

Preopening Expenses

Preopening expenses, which consist primarily of payroll and occupancy costs related to the opening of new stores, are expensed as incurred.


Income Taxes

The Company accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under the asset and liability method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date.

The Company recognizes tax benefits and/or tax liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as the Company must determine the probability of various possible outcomes.

The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. The reevaluations are based on many factors, including but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes of limitations, and new federal or state audit activity. Any change in either the Company’s recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. 

The Company also follows guidance provided on other items relevant to the accounting for income taxes throughout the year, as applicable, including derecognition of benefits, classification, interest and penalties, accounting in interim periods, disclosure and transition. Refer to Note 15, Income Taxes, for a further discussion of income taxes.

Self-Insurance

The Company is self-insured for general and automobile liability, workers’ compensation and health care claims of its employees, or Team Members, while maintaining stop-loss coverage with third-party insurers to limit its total liability exposure. Expenses associated with these liabilities are calculated for (i) claims filed, (ii) claims incurred but not yet reported and (iii) projected future claims using actuarial methods followed in the insurance industry as well as the Company’s historical claims experience. The Company includes the current and long-term portions of its self-insurance reserves in Accrued expenses and Other long-term liabilities, respectively.

The following table presents changes in the Company’s total self-insurance reserves:
 
 
January 3, 2015
 
December 28, 2013
 
December 29, 2012
Self-insurance reserves, beginning of period
$
98,475

 
$
94,548

 
$
98,944

Additions to self-insurance reserves
159,752

 
120,782

 
105,670

Acquired reserves
41,673

 
4,195

 
—

Reserves utilized
(162,867
)
 
(121,050
)
 
(110,066
)
Self-insurance reserves, end of period
$
137,033

 
$
98,475

 
$
94,548


 
Warranty Liabilities

The warranty obligation on the majority of merchandise sold by the Company with a manufacturer's warranty is the responsibility of the Company’s vendors. However, the Company has an obligation to provide customers free replacement of certain merchandise or merchandise at a prorated cost if under a warranty and not covered by the manufacturer. Merchandise sold with warranty coverage by the Company primarily includes batteries but may also include other parts such as brakes and shocks. The Company estimates its warranty obligation at the time of sale based on the historical return experience, sales level and cost of the respective product sold. To the extent vendors provide upfront allowances in lieu of accepting the obligation for warranty claims and the allowance is in excess of the related warranty expense, the excess is recorded as a reduction to cost of sales.

Revenue Recognition

The Company recognizes revenue at the time the sale is made, at which time the Company’s walk-in customers take immediate possession of the merchandise or same-day delivery is made to the Company’s commercial delivery customers, which include certain independently-owned store locations. For e-commerce sales, revenue is recognized either at the time of pick-up at one of the Company’s store locations or at the time of shipment depending on the customer’s order designation. Sales are recorded net of discounts and rebates, sales taxes and estimated returns and allowances. The Company estimates the reduction to sales and cost of sales for returns based on current sales levels and the Company’s historical return experience. The Company’s reserve for sales returns and allowances was not material as of January 3, 2015 and December 28, 2013.

Share-Based Payments

The Company provides share-based compensation to its Team Members and Board of Directors. The Company is required to exercise judgment and make estimates when determining the (i) fair value of each award granted and (ii) projected number of awards expected to vest. The Company calculates the fair value of all share-based awards at the date of grant and uses the straight-line method to amortize this fair value as compensation cost over the requisite service period.

Derivative Instruments and Hedging Activities
 
The Company’s accounting policy for derivative financial instruments is based on whether the instruments meet the criteria for designation as cash flow or fair value hedges. The criteria for designating a derivative as a hedge include the assessment of the instrument’s effectiveness in risk reduction, matching of the derivative instrument to its underlying transaction and the probability that the underlying transaction will occur. For derivatives with cash flow hedge designation, the Company would recognize the after-tax gain or loss from the effective portion of the hedge as a component of Accumulated other income (loss) and reclassify it into earnings in the same period or periods in which the hedged transaction affected earnings, and within the same income statement line item as the impact of the hedged transaction. For derivatives with fair value hedge accounting designation, the Company would recognize gains or losses from the change in the fair value of these derivatives, as well as the offsetting change in the fair value of the underlying hedged item, in earnings. Previously, the Company has utilized treasury rate locks designated as cash flow hedges to lock interest rates in anticipation of debt issuances. The Company had no derivative instruments outstanding as of January 3, 2015 and December 28, 2013.

Foreign Currency Translation

The assets and liabilities of the Company's Canadian operations are translated into U.S. dollars at current exchange rates, and revenues, expenses and cash flows are translated at average exchange rates for the fiscal year. Resulting translation adjustments are reflected as a separate component in the Consolidated Statements of Comprehensive Income. Gains and losses from foreign currency transactions, which are included in Other income, net, have not been significant for any of the periods presented.

Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) is a measure that reports all changes in equity resulting from transactions and other economic events during the period. The changes in accumulated other comprehensive income refer to revenues, expenses, gains, and losses that are included in other comprehensive income but excluded from net income.

The Company’s Accumulated other comprehensive income (loss) is comprised of foreign currency translation gains (losses), the net unrealized gain associated with the Company's postretirement benefit plan and the unamortized portion of the previously recorded unrecognized gains on interest rate swaps and forward treasury rate locks.

Goodwill and Other Intangible Assets

Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the purchase method. The Company tests goodwill and indefinite-lived intangible assets for impairment annually as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. These indicators would include a significant change in operating performance, the business climate, legal factors, competition, or a planned sale or disposition of a significant portion of the business, among other factors. The Company reviews finite-lived intangible assets for impairment in accordance with its policy for the valuation of long-lived assets.

Valuation of Long-Lived Assets

The Company evaluates the recoverability of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable and exceeds its fair value.

Significant factors, which would trigger an impairment review, include the following:

•
Significant decrease in the market price of a long-lived asset (asset group);
•
Significant changes in how assets are used or are planned to be used;
•
Significant adverse change in legal factors or business climate, including adverse regulatory action;
•
Significant negative industry trends;
•
An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group);
•
Significant changes in technology;
•
A current-period operating or cash flow loss combined with a history of operating or cash flow losses, or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group); or
•
A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.

When such an event occurs, the Company estimates the undiscounted future cash flows expected to result from the use of the long-lived asset (asset group) and its eventual disposition. These impairment evaluations involve estimates of asset useful lives and future cash flows. If the undiscounted expected future cash flows are less than the carrying amount of the asset and the carrying amount of the asset exceeds its fair value, an impairment loss is recognized. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., discounted cash flow analysis). In 2014, the Company recognized impairment losses of $11,819 on various store and corporate assets. The remaining fair value of these assets was not significant. There were no material impairment losses in 2013 or 2012.

Earnings per Share

The Company uses the two-class method to calculate earnings per share. Under the two-class method, unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share. Certain of the Company’s shares granted to Team Members in the form of restricted stock and restricted stock units are considered participating securities.

Accordingly, earnings per share is computed by dividing net income attributable to the Company’s common shareholders by the weighted-average common shares outstanding during the period. The two-class method is an earnings allocation formula that determines income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Diluted income per common share reflects the more dilutive earnings per share amount calculated using the treasury stock method or the two-class method.

Basic earnings per share of common stock has been computed based on the weighted-average number of common shares outstanding during the period, which is reduced by stock held in treasury and shares of nonvested restricted stock. Diluted earnings per share is calculated by including the effect of dilutive securities. Diluted earnings per share of common stock reflects the weighted-average number of shares of common stock outstanding, outstanding deferred stock units and the impact of outstanding stock options and stock appreciation rights (collectively “share-based awards”). Share-based awards containing performance conditions are included in the dilution impact as those conditions are met.

Lease Accounting

The Company leases certain store locations, distribution centers, office spaces, equipment and vehicles. The total amount of minimum rent is expensed on a straight-line basis over the initial term of the lease unless external economic factors exist such that renewals are reasonably assured, in which case the Company would include the renewal period in its amortization period. In those instances, the renewal period would be included in the lease term for purposes of establishing an amortization period and determining if such lease qualified as a capital or operating lease. In addition to minimum fixed rental payments, some leases provide for contingent facility rentals. Differences between the calculated rent expense and cash payments are recorded as a liability within the Accrued expenses and Other long-term liabilities captions in the accompanying consolidated balance sheets, based on the terms of the lease. Deferred rent was $60,275 and $50,638 as of January 3, 2015 and December 28, 2013, respectively. Contingent facility rentals are determined on the basis of a percentage of sales in excess of stipulated minimums for certain store facilities as defined in the individual lease agreements. Most of the leases provide that the Company pay taxes, maintenance, insurance and certain other expenses applicable to the leased premises. Management expects that in the normal course of business leases that expire will be renewed or replaced by other leases.

Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation, or at fair value at acquisition if acquired through a business combination. Expenditures for maintenance and repairs are charged directly to expense when incurred; major improvements are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the account balances, with any gain or loss reflected in the consolidated statements of operations.

Depreciation of land improvements, buildings, furniture, fixtures and equipment, and vehicles is provided over the estimated useful lives of the respective assets using the straight-line method. Depreciation of building and leasehold improvements is provided over the shorter of the original useful lives of the respective assets or the term of the lease using the straight-line method.

Closed Store Liabilities and Exit Activities

The Company continually reviews the operating performance of its existing store locations and closes or relocates certain stores identified as underperforming or delivering strategically or financially unacceptable results. Expenses accrued pertaining to closed store exit activities are included in the Company’s closed store liabilities, within Accrued expenses and Other long-term liabilities in the accompanying consolidated balance sheets, and recognized in SG&A in the accompanying consolidated statements of operations at the time the facilities actually close. Closed store liabilities include the present value of the remaining lease obligations and management’s estimate of future costs of insurance, property tax and common area maintenance expenses (reduced by the present value of estimated revenues from subleases and lease buyouts).

From time to time closed store liability estimates require revisions, primarily due to changes in assumptions associated with revenue from subleases. The effect of accretion and changes in estimates for our closed store liabilities are included in SG&A in the accompanying consolidated statements of operations at the time the changes in estimates are made.

Employees receiving severance benefits as the result of a store closing or other restructuring activity are required to render service until they are terminated in order to receive benefits. The severance is recognized in SG&A in the accompanying consolidated statements of operations over the related service period. Other restructuring costs, including costs to relocate employees, are recognized in the period in which the liability is incurred.

The Company also evaluates and determines if the results from the closure of store locations should be reported as discontinued operations based on the elimination of the operations and associated cash flows from the Company’s ongoing operations. Operations and associated cash flows transferred to another store in the local market are not considered eliminated in the evaluation of discontinued operations.

Cost of Sales and Selling, General and Administrative Expenses

The following table identifies the primary costs classified in each major expense category:
Cost of Sales
 
SG&A
Ÿ
Total cost of merchandise sold including:
 
Ÿ
Payroll and benefit costs for store and corporate
 
-
Freight expenses associated with moving
 
 
Team Members;
 
 
merchandise inventories from our vendors to
 
Ÿ
Occupancy costs of store and corporate facilities;
 
 
our distribution center,
 
Ÿ
Depreciation and amortization related to store and
 
-
Vendor incentives, and
 
 
corporate assets;
 
-
Cash discounts on payments to vendors;
 
Ÿ
Advertising;
Ÿ
Inventory shrinkage;
 
Ÿ
Costs associated with our Commercial delivery
Ÿ
Defective merchandise and warranty costs;
 
 
program, including payroll and benefit costs,
Ÿ
Costs associated with operating our distribution
 
 
and transportation expenses associated with moving
 
network, including payroll and benefit costs,
 
 
merchandise inventories from our stores and branches to
 
occupancy costs and depreciation; and
 
 
our customer locations;
Ÿ
Freight and other handling costs associated with
 
Ÿ
Self-insurance costs;
 
moving merchandise inventories through our
 
Ÿ
Professional services;
 
supply chain
 
Ÿ
Other administrative costs, such as credit card
 
-
From our distribution centers to our store and
 
 
service fees, supplies, travel and lodging;
 
 
branch locations and customers, and
 
Ÿ
Closed store expense;
 
-
From certain of our larger stores which stock a
 
Ÿ
Impairment charges;
 
 
wider variety and greater supply of inventory (“HUB
 
Ÿ
GPI acquisition-related expenses and integration costs;
 
 
stores”) to our stores after the customer has
 
 
and
 
 
special-ordered the merchandise.
 
Ÿ
BWP acquisition-related expenses and integration costs.

New Accounting Pronouncements

In August 2014, the Financial Accounting Standard Board, or FASB, issued Accounting Standard Update, or ASU, 2014-15 “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." This new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter; earlier adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows.

In June 2014, the FASB, issued ASU 2014-12 “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The amendments in this ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015; earlier adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows.

In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers." This ASU is a comprehensive new revenue recognition model that expands disclosure requirements and requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, the Company will adopt this ASU on January 1, 2017. We are currently evaluating the impact of the adoption of this guidance on the Company's consolidated financial condition, results of operations and cash flows.

In April 2014, the FASB issued ASU No. 2014-08 "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of Equity", which amends the definition of a discontinued operation in Accounting Standards Codification, or ASC, 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The new guidance changes the definition of a discontinued operation and requires discontinued operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial results. The ASU is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014; earlier adoption is permitted. The adoption of this guidance affects prospective presentation of disposals and therefore, is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows.

In July 2013, the FASB issued ASU No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.”  Under ASU 2013-11 an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in its financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance affects presentation only and, therefore, had no material impact on the Company's consolidated financial condition, results of operations or cash flows.
Inventories, net
Inventories, net
Inventories, net:

Merchandise Inventory

The Company used the LIFO method of accounting for approximately 88% of inventories at January 3, 2015 and 95% at December 28, 2013. Under LIFO, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs for inventories purchased in 2014 and prior years. As a result of utilizing LIFO, the Company recorded an increase to cost of sales of $8,930 in 2014 and a reduction to cost of sales of $5,572 and $24,087 in 2013 and 2012, respectively. The Company’s overall costs to acquire inventory for the same or similar products have generally decreased historically as the Company has been able to leverage its continued growth and execution of merchandise strategies. The increase in cost of sales for 2014 was the result of an increase in supply chain costs.

Product Cores

The remaining inventories are comprised of product cores, the non-consumable portion of certain parts and batteries and the inventory of certain subsidiaries, which are valued under the first-in, first-out (“FIFO”) method. Product cores are included as part of the Company’s merchandise costs and are either passed on to the customer or returned to the vendor. Because product cores are not subject to frequent cost changes like the Company’s other merchandise inventory, there is no material difference when applying either the LIFO or FIFO valuation method.

Inventory Overhead Costs

Purchasing and warehousing costs included in inventory as of January 3, 2015 and December 28, 2013, were $321,856 and $161,519, respectively.

Inventory Balance and Inventory Reserves

Inventory balances at the end of 2014 and 2013 were as follows:
 
January 3,
2015
 
December 28,
2013
Inventories at FIFO, net
$
3,814,123

 
$
2,424,795

Adjustments to state inventories at LIFO
122,832

 
131,762

Inventories at LIFO, net
$
3,936,955

 
$
2,556,557



Inventory quantities are tracked through a perpetual inventory system. The Company completes physical inventories and other targeted inventory counts in its store locations to ensure the accuracy of the perpetual inventory quantities of both merchandise and core inventory in these locations. In its distribution centers and branches, the Company uses a cycle counting program to ensure the accuracy of the perpetual inventory quantities of both merchandise and product core inventory. Reserves for estimated shrink are established based on the results of physical inventories conducted by the Company with the assistance of an independent third party in substantially all of the Company’s stores over the course of the year, other targeted inventory counts in its stores, results from recent cycle counts in its distribution facilities and historical and current loss trends.

The Company also establishes reserves for potentially excess and obsolete inventories based on (i) current inventory levels, (ii) the historical analysis of product sales and (iii) current market conditions. The Company has return rights with many of its vendors and the majority of excess inventory is returned to its vendors for full credit. In certain situations, the Company establishes reserves when less than full credit is expected from a vendor or when liquidating product will result in retail prices below recorded costs.

The following table presents changes in the Company’s inventory reserves for years ended January 3, 2015, December 28, 2013 and December 29, 2012:
 
January 3,
2015
 
December 28,
2013
 
December 29,
2012
Inventory reserves, beginning of period
$
37,523

 
$
31,418

 
$
30,786

Additions to inventory reserves
92,773

 
65,466

 
72,852

Reserves utilized
(80,857
)
 
(59,361
)
 
(72,220
)
Inventory reserves, end of period
$
49,439

 
$
37,523

 
$
31,418

Acquisitions
Acquisitions
Acquisitions:

General Parts International, Inc.

On January 2, 2014, the Company acquired GPI in an all-cash transaction. GPI, formerly a privately-held company, is a leading distributor and supplier of original equipment and aftermarket replacement products for Commercial markets operating under the Carquest and Worldpac brands. As of the acquisition date, GPI operated 1,233 Carquest stores and 103 Worldpac branches located in 45 states and Canada and serviced approximately 1,400 independently-owned Carquest stores. The Company believes the acquisition of GPI will allow the Company to expand its geographic presence, Commercial capabilities and overall scale to better serve customers.

The Company acquired all of GPI's assets and liabilities as a result of the transaction. Under the terms of the agreement, the Company acquired all of the outstanding stock of GPI for a purchase price of $2,080,804 (subject to adjustment for certain closing items) consisting of $1,307,991 in cash to GPI's shareholders, the repayment of $694,301 of GPI debt and $78,512 in make-whole fees and transaction-related expenses paid by the Company on GPI's behalf. The Company funded the purchase price with cash on-hand, $700,000 from a term loan and $306,046 from a revolving credit facility. Refer to Note 8, Long-Term Debt, for a more detailed description of this debt. The Company recognized $26,970 of acquisition-related costs during 2013, which was included in SG&A expenses and interest expense. The Company recognized no acquisition-related costs during Fiscal 2014, as all of these costs were recognized during Fiscal 2013. The Company has included the financial results of GPI in its consolidated financial statements commencing January 2, 2014. GPI contributed sales of $3,040,493 and net income of $58,535 during 2014. The net income reflects amortization related to the acquired intangible assets and integration expenses.

The Company placed $200,881 of the total purchase price in escrow to secure indemnification obligations of the sellers relating to the accuracy of representations and warranties and the satisfaction of covenants. Half of the escrow funds will be disbursed to the Sellers on July 2, 2015 and the remaining amounts distributed on January 2, 2017, after deducting for any claims indemnified from escrow. At the acquisition date, the Company recognized a net indemnification asset of $4,283 with respect to liabilities for which it intends to make a claim from escrow. According to the agreement, the Company will be indemnified, for the escrow term of three years, against losses incurred relating to taxes owed by GPI for periods prior to June 30, 2013.

Purchase Price Allocation

The following table summarizes the consideration paid for GPI and the amounts of the assets acquired and liabilities assumed as of the acquisition date:

Total Consideration
 
$
2,080,804

 
 
 
Recognized amounts of identifiable assets acquired and liabilities assumed
 
 
Cash and cash equivalents
 
$
25,176

Receivables
 
255,997

Inventory
 
1,159,886

Other current assets
 
118,871

Property, plant and equipment
 
162,545

Intangible assets
 
756,571

Other assets
 
1,741

Accounts payable
 
(704,006
)
Accrued and other current liabilities
 
(136,784
)
Long-term liabilities
 
(356,584
)
Total identifiable net assets
 
1,283,413

 
 
 
Goodwill
 
797,391

 
 
 
Total acquired net assets
 
$
2,080,804



The Company completed the valuation of the assets acquired and liabilities assumed in the third quarter of 2014. Due to the nature of GPI's business, the assets acquired and liabilities assumed as part of this acquisition are similar in nature to those of the Company. The goodwill of $797,391 arising from the acquisition consists largely of the anticipated synergies and economies of scale from the combined companies and the overall strategic importance of GPI to the Company. The goodwill attributable to the acquisition will not be amortizable or deductible for tax purposes. For additional information regarding goodwill and intangible assets acquired, see Note 6, Goodwill and Intangible Assets.

The Company recorded an asset associated with favorable leases of $56,465 and a liability associated with unfavorable leases of $48,604, which are included in intangible assets and other long-term liabilities, respectively. Favorable and unfavorable lease assets and liabilities will be amortized to rent expense over their expected lives, which approximates the period of time that the favorable or unfavorable lease terms will be in effect. The fair value of financial assets acquired included receivables of $255,997 primarily from Commercial customers and vendors. The gross amount due was $269,006, of which $13,009 was expected to be uncollectible.

Unaudited Pro Forma Financial Information

The following unaudited consolidated pro forma financial information combines the respective measure of the Company for Fiscal 2013 and GPI for the twelve months ended December 31, 2013. The pro forma financial information has been prepared by adjusting the historical data to give effect to the acquisition as if it had occurred on December 30, 2012 (the first day of the Company's fiscal 2013).
 
 
December 28,
2013
 
 
(52 weeks)
Pro forma:
 
 
Net sales
 
$
9,456,405

 
 
 
Net income
 
$
428,562

 
 
 
Basic earnings per share
 
$
5.88

 
 
 
Diluted earnings per share
 
$
5.84


The unaudited consolidated pro forma financial information was prepared in accordance with the acquisition method of accounting under existing standards and is not necessarily indicative of the results of operations that would have occurred if the acquisition had been completed on the date indicated, nor is it indicative of the future operating results of the Company.
The unaudited pro forma results have been adjusted with respect to certain aspects of the acquisition to reflect:
•
additional amortization expense that would have been recognized assuming fair value adjustments to the existing GPI assets acquired and liabilities assumed, including favorable and unfavorable lease values and other intangible assets;
•
adjustment of interest expense to reflect the additional borrowings of the Company in conjunction with the acquisition and removal of GPI historical debt;
•
elimination of the GPI recognition of a deferred gain in 2013 of $6,385 for the twelve months ended December 31, 2013 from a sale leaseback transaction as the deferred values were subsequently removed in purchase accounting; and
•
elimination of acquisition-related transaction fees incurred by the Company of $26,970 for the fifty-two weeks ended December 28, 2013.
The unaudited pro forma results do not reflect future events that either have occurred or may occur after the acquisition, including, but not limited to, the anticipated realization of ongoing savings from operating synergies in subsequent periods. They also do not give effect to certain charges that the Company expects to incur in connection with the integration of GPI, including, but not limited to, additional professional fees, employee integration costs, potential asset impairments, and accelerated depreciation and amortization.

B.W.P. Distributors, Inc.

On December 31, 2012, the Company acquired B.W.P. Distributors, Inc. ("BWP") in an all-cash transaction. BWP, formerly a privately-held company, supplied, marketed and distributed automotive aftermarket parts and products principally to Commercial customers. Prior to the acquisition, BWP operated or supplied 216 locations in the northeastern U.S. The Company believes this acquisition will enable the Company to continue its expansion in the competitive Northeast, which is a strategic growth area for the Company due to the large population and overall size of the market, and to gain valuable information to apply to its existing operations as a result of BWP's expertise in Commercial. The amount of acquired goodwill reflects this strategic importance to the Company.

Concurrent with the closing of the acquisition, the Company transferred one distribution center and BWP's rights to distribute to 92 independently owned locations to an affiliate of GPI. As a result, the Company began operating the 124 BWP company-owned stores and two remaining BWP distribution centers as of the closing date. The Company has included the financial results of BWP in its consolidated financial statements commencing December 31, 2012 (Fiscal 2013). Pro forma results of operations related to the acquisition of BWP are not presented as BWP's results are not material to the Company's consolidated statements of operations.

Under the terms of the agreement, the Company acquired the net assets in exchange for a purchase price of $187,109. Following the closing of the acquisition, the Company sold certain of the acquired assets for $16,798 related to the transfer of operations to GPI. The Company recognized $123,446 of goodwill upon the acquisition, which is expected to be deductible for income tax purposes.

Other

The Company also acquired nine stores during 2014 with an aggregate purchase price of $5,155. The results of these stores are not material to the Company's consolidated financial statements.
Exit Activities and Impairment
Exit Activities and Impairment
Exit Activities and Impairment:

Office Consolidations

In June 2014, the Company approved plans to relocate operations from its Minneapolis, Minnesota and Campbell, California offices to other existing offices of the Company, including its offices in Newark, California, Roanoke, Virginia and Raleigh, North Carolina, and to close its Minneapolis and Campbell offices. The Company also expects to relocate various functions between its existing offices in Roanoke and Raleigh. The Company anticipates that the relocations and office closings will be substantially completed by the end of 2015.

In connection with these relocations and office closings, the Company plans to relocate some employees and terminate the employment of others. The Board of Directors of the Company approved this action in order to take advantage of synergies following the acquisition of GPI and to capitalize on the strength of existing locations and organizational experience. The Company estimates that it will incur restructuring costs of approximately $28,800 under these plans through the end of 2015. Substantially all of these costs are expected to be cash expenditures. This estimate includes approximately $11,200 of employee severance costs and $17,600 of relocation costs.

Employees receiving severance/outplacement benefits will be required to render service until they are terminated in order to receive the benefits. Therefore, the severance/outplacement benefits will be recognized over the related service periods. During 2014, the Company recognized $6,731 of severance/outplacement benefits under these restructuring plans and other severance related to the acquisition of GPI. Other restructuring costs, including costs to relocate employees, will be recognized in the period in which the liability is incurred. During 2014, the Company recognized $7,053 of relocation costs.

Integration of Carquest stores

The Company also approved plans in June 2014 to begin consolidating its Carquest stores acquired on January 2, 2014. As of January 3, 2015, 98 Carquest stores had been consolidated into existing Advance Auto Parts stores and 10 Carquest stores had been converted to the Advance Auto Parts format. Plans are in place to consolidate or convert the remaining Carquest stores over the next few years. In addition, the Company will continue to consolidate or convert the remaining Carquest named stores that were acquired with BWP on December 31, 2012, 34 of which were consolidated and 19 were converted during 2014. The Company estimates that the total exit costs to be incurred as a result of consolidations and conversions during Fiscal 2015 will be approximately $5,500, consisting primarily of closed store lease obligations.

Contract termination costs, such as those associated with leases on closed stores will be recognized at the cease-use date. Closed lease liabilities include the present value of the remaining lease obligations and management’s estimate of future costs of insurance, property tax and common area maintenance (reduced by the present value of estimated revenues from subleases and lease buyouts). The Company’s closed store lease obligations at January 3, 2015 included $5,812 related to the consolidations of Carquest stores during 2014.

Other Exit Activities

In August 2014, the Company approved plans to consolidate 33 of its 40 Autoparts International ("AI") stores located in Florida into Advance Auto Parts stores by the end of 2015. Eleven of these stores were consolidated in 2014. The Company also plans to convert the remaining 7 AI stores in Florida to Advance Auto Parts stores by the end of 2015. The total exit costs associated with the AI consolidations is expected to be immaterial.

Total Restructuring Liabilities

A summary of the Company’s restructuring liabilities, which are recorded in accrued expenses (current portion) and long-term liabilities (long-term portion) in the accompanying condensed consolidated balance sheet, are presented in the following table:
 
 
Closed Store Lease Obligations
 
Severance
 
Relocation and Other Exit Costs
 
Total
 
For the year ended January 3, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 28, 2013
 
$
11,212

 
$
—

 
$
—

 
$
11,212

 
Reserves acquired with GPI
 
3,455

 
—

 
—

 
3,455

 
Reserves established
 
11,138

 
8,038

 
7,053

 
26,229

 
Change in estimates
 
1,053

 
(1,307
)
 
—

 
(254
)
 
Cash payments
 
(7,588
)
 
(927
)
 
(5,237
)
 
(13,752
)
 
Balance, January 3, 2015
 
$
19,270

 
$
5,804

 
$
1,816

 
$
26,890

 
Goodwill and Intangible Assets
Goodwill and Intangible Assets
Goodwill and Intangible Assets:

Goodwill

The following table reflects the carrying amount of goodwill and the changes in goodwill carrying amounts.
 
January 3,
2015
 
December 28,
2013
 
(53 weeks ended)
 
(52 weeks ended)
Goodwill, beginning of period
$
199,835

 
$
76,389

Acquisitions
798,043

 
123,446

Changes in foreign currency exchange rates
(2,452
)
 
—

 
 
 
 
Goodwill, end of period
$
995,426

 
$
199,835



As discussed in Note 4, Acquisitions, on January 2, 2014, the Company acquired GPI in an all-cash transaction which resulted in the addition of $797,391 of goodwill. During 2014, the Company also added $652 of goodwill associated with the acquisition of nine stores. On December 31, 2012, the Company acquired BWP in an all-cash transaction which resulted in the addition of $123,446 of goodwill.
Intangible Assets Other Than Goodwill

In 2014, the Company recorded an increase to intangible assets of $757,453 related to the acquisition of GPI and nine stores. The increase included customer relationships of $330,293 which will be amortized over 12 years, non-competes totaling $50,695 which will be amortized over 5 years and favorable leases of $56,465 which will be amortized over the life of the leases at a weighted average of 4.5 years. The increase also includes indefinite-lived intangibles of $320,000 from acquired brands.

In 2013, the Company recorded a net increase to intangible assets of $29,001 related to the acquisition of BWP. The net increase included customer relationships of $23,801 which will be amortized over 12 years and other intangible assets of $5,200 which will be amortized over a weighted average of 3.4 years. The increases in intangible assets are presented net of the sale of certain BWP customer relationships subsequent to the acquisition which reduced intangible assets by $2,244.

Amortization expense was $56,499, $7,974 and $3,635 for 2014, 2013 and 2012, respectively. The gross carrying amounts and accumulated amortization of acquired intangible assets as of January 3, 2015 and December 28, 2013 are comprised of the following:
 
 
January 3, 2015
 
December 28, 2013
 
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net
Amortized intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
 
$
362,483

 
$
(40,609
)
 
$
321,874

 
$
33,601

 
$
(10,309
)
 
$
23,292

Acquired technology
 
8,850

 
(8,569
)
 
281

 
8,850

 
(6,381
)
 
2,469

Favorable leases
 
56,342

 
(11,939
)
 
44,403

 
—

 
—

 
—

Non-compete and other
 
56,780

 
(14,596
)
 
42,184

 
6,085

 
(2,524
)
 
3,561

 
 
484,455

 
(75,713
)
 
408,742

 
48,536

 
(19,214
)
 
29,322

 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Brands, trademark and tradenames
 
339,383

 
—

 
339,383

 
20,550

 
—

 
20,550

 
 
 
 
 
 
 
 
 
 
 
 
 
Total intangible assets
 
$
823,838

 
$
(75,713
)
 
$
748,125

 
$
69,086

 
$
(19,214
)
 
$
49,872



Future Amortization Expense

The table below shows expected amortization expense for the next five years for acquired intangible assets recorded as of January 3, 2015:
Fiscal Year
 
Amount
2015
 
$
52,115

2016
 
48,312

2017
 
45,959

2018
 
42,948

2019
 
32,187

Thereafter
 
187,221

Receivables, net
Receivables, net
Receivables, net:

Receivables consist of the following:
 
 
January 3,
2015
 
December 28,
2013
Trade
 
$
360,922

 
$
145,670

Vendor
 
222,476

 
138,336

Other
 
12,579

 
6,884

Total receivables
 
595,977

 
290,890

Less: Allowance for doubtful accounts
 
(16,152
)
 
(13,295
)
Receivables, net
 
$
579,825

 
$
277,595

Long-term Debt
Long-term Debt
Long-term Debt:

Long-term debt consists of the following:
 
January 3, 2015
 
December 28, 2013
Revolving facility at variable interest rates (2.45% and 1.47% at January 3, 2015 and December 28, 2013, respectively) due December 5, 2018
$
93,400

 
$
—

Term loan at variable interest rates (1.72% and 1.67% at January 3, 2015 and December 28, 2013, respectively) due January 2, 2019
490,000

 
—

5.75% Senior Unsecured Notes (net of unamortized discount of $746 and $865 at January 3, 2015 and December 28, 2013, respectively) due May 1, 2020
299,254

 
299,135

4.50% Senior Unsecured Notes (net of unamortized discount of $72 and $80 at January 3, 2015 and December 28, 2013, respectively) due January 15, 2022
299,928

 
299,920

4.50% Senior Unsecured Notes (net of unamortized discount of $1,271 and $1,387 at January 3, 2015 and December 28, 2013) due December 1, 2023
448,729

 
448,613

Other
5,582

 
5,916

 
1,636,893

 
1,053,584

Less: Current portion of long-term debt
(582
)
 
(916
)
Long-term debt, excluding current portion
$
1,636,311

 
$
1,052,668


Bank Debt

On December 5, 2013, the Company entered into a new credit agreement (the "2013 Credit Agreement") which provides a $700,000 unsecured term loan and a $1,000,000 unsecured revolving credit facility with Advance Stores, as Borrower, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent. This revolving credit facility replaced the revolver under the Company’s former Credit Agreement dated as of May 27, 2011 with Advance Stores, as Borrower, the lenders party thereto, and JPMorgan Chase Bank, N.A., as administrative agent (the “2011 Credit Agreement”). Upon execution of the 2013 Credit Agreement, the lenders’ commitments under the 2011 Credit Agreement were terminated and the liabilities of the Company and its subsidiaries with respect to their obligations under the 2011 Credit Agreement were discharged. The new revolving credit facility also provides for the issuance of letters of credit with a sub-limit of $300,000 and swingline loans in an amount not to exceed $50,000. The Company may request, subject to agreement by one or more lenders, that the total revolving commitment be increased by an amount not to exceed $250,000 by those respective lenders (up to a total commitment of $1,250,000) during the term of the 2013 Credit Agreement. Voluntary prepayments and voluntary reductions of the revolving balance are permitted in whole or in part, at the Company’s option, in minimum principal amounts as specified in the 2013 Credit Agreement. Under the terms of the 2013 Credit Agreement, the revolving credit facility terminates in December 2018 and the term loan matures in January 2019.

As of January 3, 2015, under the 2013 Credit Agreement, the Company had outstanding borrowings of $93,400 under the revolver and $490,000 under the term loan. As of January 3, 2015, the Company also had letters of credit outstanding of $124,334, which reduced the availability under the revolver to $782,266. The letters of credit generally have a term of one year or less and primarily serve as collateral for the Company’s self-insurance policies.

The interest rate on borrowings under the revolving credit facility is based, at the Company’s option, on adjusted LIBOR, plus a margin, or an alternate base rate, plus a margin. The current margin is 1.30% and 0.30% per annum for the adjusted LIBOR and alternate base rate borrowings, respectively. A facility fee is charged on the total amount of the revolving credit facility, payable in arrears. The current facility fee rate is 0.20% per annum. Under the terms of the 2013 Credit Agreement, the interest rate and facility fee are subject to change based on the Company’s credit rating.

The interest rate on the term loan is based, at the Company’s option, on adjusted LIBOR, plus a margin, or an alternate base rate, plus a margin. The current margin is 1.50% and 0.50% per annum for the adjusted LIBOR and alternate base rate borrowings, respectively. Under the terms of the term loan, the interest rate is subject to change based on the Company’s credit rating.
The 2013 Credit Agreement contains customary covenants restricting the ability of: (a) subsidiaries of Advance Stores to, among other things, create, incur or assume additional debt: (b) Advance Stores and its subsidiaries to, among other things, (i) incur liens, (ii) make loans and investments, (iii) guarantee obligations, and (iv) change the nature of its business conducted by itself and its subsidiaries; (c) Advance, Advance Stores and their subsidiaries to, among other things (i) engage in certain mergers, acquisitions, asset sales and liquidations, (ii) enter into certain hedging arrangements, (iii) enter into restrictive agreements limiting its ability to incur liens on any of its property or assets, pay distributions, repay loans, or guarantee indebtedness of its subsidiaries and (iv) engage in sale-leaseback transactions; and (d) Advance, among other things, to change its holding company status. Advance and Advance Stores are required to comply with financial covenants with respect to a maximum leverage ratio and a minimum consolidated coverage ratio. The 2013 Credit Agreement also provides for customary events of default, including non-payment defaults, covenant defaults and cross-defaults to Advance Stores’ other material indebtedness. The Company was in compliance with its covenants with respect to the 2013 Credit Agreement at January 3, 2015 and December 28, 2013.

Senior Unsecured Notes

The Company issued 4.50% senior unsecured notes in December 2013 at 99.69% of the principal amount of $450,000 which are due December 1, 2023 (the “2023 Notes”). The 2023 Notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on June 1 and December 1 of each year. The net proceeds from the offering of these notes were approximately $445,200, after deducting underwriting discounts and commissions and estimated offering expenses payable by the Company.

The Company previously issued 4.50% senior unsecured notes in January 2012 at 99.968% of the principal amount of $300,000, which are due January 15, 2022 (the “2022 Notes”). The 2022 Notes bear interest at a rate of 4.50% per year payable semi-annually in arrears on January 15 and July 15 of each year. The Company also previously issued 5.75% senior unsecured notes in April 2010 at 99.587% of the principal amount of $300,000, which are due May 1, 2020 (the “2020 Notes” or collectively with the 2023 Notes and the 2022 Notes, “the Notes”). The 2020 Notes bear interest at a rate of 5.75% per year payable semi-annually in arrears on May 1 and November 1 of each year. Advance served as the issuer of the Notes with certain of Advance’s domestic subsidiaries currently serving as subsidiary guarantors. The terms of the Notes are governed by an indenture (as amended, supplemented, waived or otherwise modified, the “Indenture”) among the Company, the subsidiary guarantors from time to time party thereto and Wells Fargo Bank, National Association, as Trustee.

The Company may redeem some or all of the Notes at any time or from time to time, at the redemption price described in the Indenture. In addition, in the event of a Change of Control Triggering Event (as defined in the Indenture for the Notes), the Company will be required to offer to repurchase the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. The Notes are currently fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by each of the subsidiary guarantors. The Company will be permitted to release guarantees without the consent of holders of the Notes under the circumstances described in the Indenture: (i) upon the release of the guarantee of the Company’s other debt that resulted in the affected subsidiary becoming a guarantor of this debt; (ii) upon the sale or other disposition of all or substantially all of the stock or assets of the subsidiary guarantor; or (iii) upon the Company’s exercise of its legal or covenant defeasance option.

The Indenture contains customary provisions for events of default including for: (i) failure to pay principal or interest when due and payable; (ii) failure to comply with covenants or agreements in the Indenture or the Notes and failure to cure or obtain a waiver of such default upon notice; (iii) a default under any debt for money borrowed by the Company or any of its subsidiaries that results in acceleration of the maturity of such debt, or failure to pay any such debt within any applicable grace period after final stated maturity, in an aggregate amount greater than $25,000 without such debt having been discharged or acceleration having been rescinded or annulled within 10 days after receipt by the Company of notice of the default by the Trustee or holders of not less than 25% in aggregate principal amount of the Notes then outstanding; and (iv) events of bankruptcy, insolvency or reorganization affecting the Company and certain of its subsidiaries. In the case of an event of default, the principal amount of the Notes plus accrued and unpaid interest may be accelerated. The Indenture also contains covenants limiting the ability of the Company and its subsidiaries to incur debt secured by liens and to enter into sale and lease-back transactions.

Future Payments

As of January 3, 2015, the aggregate future annual maturities of long-term debt instruments are as follows:
Fiscal
Year
 
Amount
2015
 
$
582

2016
 
—

2017
 
35,000

2018
 
163,400

2019
 
385,000

Thereafter
 
1,052,911

 
 
$
1,636,893



Debt Guarantees

The Company is a guarantor of loans made by banks to various independently-owned Carquest stores that are customers of the Company ("Independents") totaling $33,606 as of January 3, 2015. The Company has concluded that some of these guarantees meet the definition of a variable interest in a variable interest entity. However, the Company does not have the power to direct the activities that most significantly affect the economic performance of the Independents and therefore is not the primary beneficiary of these stores. Upon entering into a relationship with certain Independents, the Company guaranteed the debt of those stores to aid in the procurement of business loans. These loans are collateralized by security agreements on merchandise inventory and other assets of the borrowers. The approximate value of the inventory collateralized in these agreements is $71,997 as of January 3, 2015. The Company believes that the likelihood of performance under these guarantees is remote, and any fair value attributable to these guarantees would be very minimal.
Fair Value Measurements
Fair Value Measurements
Fair Value Measurements:
 
The Company’s financial assets and liabilities measured at fair value are grouped in three levels. The levels prioritize the inputs used to measure the fair value of these assets or liabilities. These levels are:

•
Level 1 – Unadjusted quoted prices that are available in active markets for identical assets or liabilities at the measurement date.
•
Level 2 – Inputs other than quoted prices that are observable for assets and liabilities at the measurement date, either directly or indirectly. These inputs include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are less active, and inputs other than quoted prices that are observable for the asset or liability or corroborated by other observable market data.
•
Level 3 – Unobservable inputs for assets or liabilities that are not able to be corroborated by observable market data and reflect the use of a reporting entity’s own assumptions. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The fair value hierarchy requires the use of observable market data when available. In instances where inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been categorized based on the lowest level input that is significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability.

The following table sets forth the Company’s financial liabilities that were measured at fair value on a recurring basis as of January 3, 2015 and December 28, 2013:
 
 
 
Fair Value Measurements at Reporting Date Using
 
 
 
Level 1
 
Level 2
 
Level 3
 
Fair Value
 
Quoted Prices in
Active Markets for
Identical Assets
 
Significant Other
Observable Inputs
 
Significant
Unobservable
Inputs
As of December 28, 2013:
 

 
 

 
 

 
 

Contingent consideration related to business acquisitions
$
9,475

 
$
—

 
$
—

 
$
9,475


 
The fair value of the contingent consideration, which was recorded in Accrued expenses as of December 28, 2013, was based on various estimates including the Company’s estimate of the probability of achieving the targets and the time value of money. During 2014, the contingent consideration previously recognized at fair value was paid.

The carrying amount of the Company’s cash and cash equivalents, accounts receivable, bank overdrafts, accounts payable, accrued expenses and the current portion of long term debt approximate their fair values due to the relatively short term nature of these instruments. The fair value of the Company’s senior unsecured notes was determined using Level 2 inputs based on quoted market prices and the Company believes that the carrying value of its other long-term debt and certain long-term liabilities approximate fair value.

The carrying value and fair value of the Company’s long-term debt, excluding the current portion, as of January 3, 2015 and December 28, 2013, respectively, are as follows:
 
January 3,
2015
 
December 28,
2013
Carrying Value
$
1,636,311

 
$
1,052,668

Fair Value
$
1,728,000

 
$
1,086,000



Non-Financial Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Certain assets and liabilities are measured at fair value on a nonrecurring basis; that is, the assets and liabilities are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (e.g., when there is evidence of impairment). At January 3, 2015, the Company had no significant fair value measurements of non-financial assets or liabilities subsequent to initial recognition.
Property and Equipment
Property and Equipment
Property and Equipment:
 
Property and equipment consists of the following:
 
 
Original
Useful Lives
 
January 3,
2015
 
December 28,
2013
 
Land and land improvements
 
0 - 10 years
 
$
438,638

 
$
418,207

 
Buildings
 
30 - 40 years
 
460,187

 
445,820

 
Building and leasehold improvements
 
3 - 30 years
 
394,259

 
336,685

 
Furniture, fixtures and equipment
 
3 - 20 years
 
1,402,563

 
1,244,456

 
Vehicles
 
2 - 13 years
 
37,051

 
18,291

 
Construction in progress
 
 
 
71,691

 
75,985

 
 
 
 
 
2,804,389

 
2,539,444

 
Less - Accumulated depreciation
 
 
 
(1,372,359
)
 
(1,255,474
)
 
Property and equipment, net
 
 
 
$
1,432,030

 
$
1,283,970

 


Depreciation expense was $235,040, $199,821 and $185,909 for 2014, 2013 and 2012, respectively. The Company capitalized approximately $11,436, $11,534 and $10,026 incurred for the development of internal use computer software during 2014, 2013 and 2012, respectively. These costs are included in the furniture, fixtures and equipment category above and are depreciated on the straight-line method over three to five years.
Accrued Expenses
Accrued Expenses
Accrued Expenses:
 
Accrued expenses consist of the following:
 
 
January 3,
2015
 
December 28,
2013
 
Payroll and related benefits
 
$
116,198

 
$
101,576

 
Warranty reserves
 
47,972

 
39,512

 
Capital expenditures
 
29,780

 
20,714

 
Self-insurance reserves
 
58,899

 
45,504

 
Taxes payable
 
87,473

 
82,179

 
Other
 
180,351

 
139,140

 
Total accrued expenses
 
$
520,673

 
$
428,625

 


The following table presents changes in the Company’s warranty reserves:
 
 
January 3,
2015
 
December 28,
2013
 
December 29,
2012
Warranty reserves, beginning of period
 
$
39,512

 
$
38,425

 
$
38,847

Reserves acquired with GPI

 
4,490

 
—

 
—

Additions to warranty reserves
 
52,306

 
42,380

 
40,766

Reserves utilized
 
(48,336
)
 
(41,293
)
 
(41,188
)
Warranty reserves, end of period
 
$
47,972

 
$
39,512

 
$
38,425

Other Current and Long-term Liabilities
Other Current and Long-Term Liabilities
Other Current and Long-term Liabilities:
 
Other current liabilities consist of the following:
 
 
January 3,
2015
 
December 28,
2013
Deferred income taxes
 
$
89,173

 
$
135,754

Other
 
37,273

 
18,876

Total other current liabilities
 
$
126,446

 
$
154,630



Other long-term liabilities consist of the following:
 
 
January 3,
2015
 
December 28,
2013
Deferred income taxes
 
$
360,903

 
$
91,957

Self-insurance reserves
 
78,134

 
52,971

Deferred rent
 
55,153

 
47,851

Unfavorable leases
 
45,259

 
—

Other
 
40,620

 
38,337

Total other long-term liabilities
 
$
580,069

 
$
231,116

Stock Repurchases
Stock Repurchases
Stock Repurchases:

The Company’s stock repurchase program allows it to repurchase its common stock on the open market or in privately negotiated transactions from time to time in accordance with the requirements of the SEC. The Company’s $500,000 stock repurchase program in place as of January 3, 2015 was authorized by its Board of Directors on May 14, 2012.

During 2014, the Company repurchased no shares of its common stock under its stock repurchase program. The Company had $415,092 remaining under its stock repurchase program as of January 3, 2015. During 2013, the Company repurchased 998 shares of its common stock at an aggregate cost of $77,293, or an average price of $77.47 per share under its stock repurchase program.

The Company repurchased 35 shares of its common stock at an aggregate cost of $5,154, or an average price of $148.85 per share, in connection with the net settlement of shares issued as a result of the vesting of restricted stock and restricted stock units during 2014. The Company repurchased 38 shares of its common stock at an aggregate cost of $3,502, or an average price of $91.78 per share, in connection with the net settlement of shares issued as a result of the vesting of restricted stock and restricted stock units during 2013.

Earnings per Share
Earnings Per Share
Earnings per Share:
 
Certain of the Company’s shares granted to Team Members in the form of restricted stock and restricted stock units are considered participating securities which require the use of the two-class method for the computation of basic and diluted earnings per share. For 2014, 2013 and 2012, earnings of $1,555, $895 and $870, respectively, were allocated to the participating securities.

Diluted earnings per share are calculated by including the effect of dilutive securities. Share-based awards to purchase approximately 13, 75 and 221 shares of common stock that had an exercise price in excess of the average market price of the common stock during 2014, 2013 and 2012, respectively, were not included in the calculation of diluted earnings per share because they are anti-dilutive.

The following table illustrates the computation of basic and diluted earnings per share for 2014, 2013 and 2012, respectively: 
 
 
2014
 
2013
 
2012
Numerator
 
 
 
 
 
 
Net income applicable to common shares
 
$
493,825

 
$
391,758

 
$
387,670

Participating securities’ share in earnings
 
(1,555
)
 
(895
)
 
(870
)
Net income applicable to common shares
 
$
492,270

 
$
390,863

 
$
386,800

Denominator
 
 
 
 
 
 
Basic weighted average common shares
 
72,932

 
72,930

 
73,091

Dilutive impact of share-based awards
 
482

 
484

 
971

Diluted weighted average common shares
 
73,414

 
73,414

 
74,062

 
 
 
 
 
 
 
Basic earnings per common share
 
 
 
 
 
 
Net income applicable to common stockholders
 
$
6.75

 
$
5.36

 
$
5.29

Diluted earnings per common share
 
 
 
 
 
 
Net income applicable to common stockholders
 
$
6.71

 
$
5.32

 
$
5.22

Income Taxes
Income Taxes
Income Taxes:
 
Provision for Income Taxes

Provision for income taxes for 2014, 2013 and 2012 consists of the following:
 
 
Current
 
Deferred
 
Total
2014
 
 
 
 
 
 
Federal
 
$
204,743

 
$
45,389

 
$
250,132

State
 
19,359

 
4,830

 
24,189

Foreign
 
14,999

 
(1,751
)
 
13,248

 
 
$
239,101

 
$
48,468

 
$
287,569

2013
 
 
 
 
 
 
Federal
 
$
202,784

 
$
(1,898
)
 
$
200,886

State
 
25,287

 
(339
)
 
24,948

Foreign
 
8,806

 
—

 
8,806

 
 
$
236,877

 
$
(2,237
)
 
$
234,640

2012
 
 
 
 
 
 
Federal
 
$
185,564

 
$
21,940

 
$
207,504

State
 
20,116

 
4,953

 
25,069

Foreign
 
3,831

 
—

 
3,831

 
 
$
209,511

 
$
26,893

 
$
236,404



The provision for income taxes differed from the amount computed by applying the federal statutory income tax
rate due to:
 
 
January 3, 2015
 
December 28, 2013
 
December 29, 2012
Income before provision for income taxes at statutory U.S. federal income tax rate (35%)
 
$
273,488

 
$
219,239

 
$
218,426

State income taxes, net of federal income tax benefit
 
15,723

 
16,216

 
16,295

Other, net
 
(1,642
)
 
(815
)
 
1,683

 
 
$
287,569

 
$
234,640

 
$
236,404



Deferred Income Tax Assets(Liabilities)

Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax reporting purposes. Net deferred income tax balances are comprised of the following:
 
 
January 3,
2015
 
December 28,
2013
Deferred income tax assets
 
$
151,997

 
$
101,979

Valuation allowance
 
(5,084
)
 
(1,557
)
Deferred income tax liabilities
 
(593,264
)
 
(321,778
)
Net deferred income tax liabilities
 
$
(446,351
)
 
$
(221,356
)


As of January 3, 2015 and December 28, 2013, the Company had deferred income tax assets of $1,297 and $2,207 from federal net operating losses, or NOLs, of $3,705 and $6,307, and deferred income tax assets of $6,847 and $2,130 from state NOLs of $165,849 and $40,440, respectively. These NOLs may be used to reduce future taxable income and expire periodically through Fiscal 2034. Due to uncertainties related to the realization of certain deferred tax assets for NOLs in certain jurisdictions, the Company recorded a valuation allowance of $5,084 and $1,557 as of both January 3, 2015 and December 28, 2013. The amount of deferred income tax assets realizable, however, could change in the future if projections of future taxable income change. As of January 3, 2015 and December 28, 2013, the Company had cumulative net deferred income tax liabilities of $446,351 and $221,356, respectively.

The Company has not recorded deferred taxes when earnings from foreign operations are considered to be indefinitely invested outside of the U.S. These accumulated net earnings relate to certain ongoing operations for multiple years and were approximately $108,000 as of January 3, 2015. It is not practicable to determine the income tax liability that would be payable if such earnings were repatriated.

Temporary differences which give rise to significant deferred income tax assets (liabilities) are as follows:
 
 
January 3,
2015
 
December 28,
2013
Current deferred income tax assets (liabilities):
 
 
 
 
Inventory valuation differences
 
$
(156,703
)
 
$
(178,201
)
Accrued medical and workers compensation
 
14,250

 
9,370

Accrued expenses not currently deductible for tax
 
48,684

 
28,501

Other, net
 
5,119

 
5,612

Total current deferred income tax assets (liabilities)
 
$
(88,650
)
 
$
(134,718
)
 
 
 
 
 
Long-term deferred income tax assets (liabilities):
 
 
 
 
Property and equipment
 
$
(181,511
)
 
$
(143,577
)
Share-based compensation
 
13,721

 
10,733

Accrued medical and workers compensation
 
30,424

 
20,532

Net operating loss carryforwards
 
7,233

 
3,426

Straight-line rent
 
21,431

 
20,784

Intangible assets
 
(255,050
)
 
(10,961
)
Other, net
 
6,051

 
12,425

Total long-term deferred income tax assets (liabilities)
 
$
(357,701
)
 
$
(86,638
)


These amounts are recorded in Other current liabilities and Other long-term liabilities in the accompanying consolidated balance sheets, as appropriate.

Unrecognized Tax Benefits

The following table lists each category and summarizes the activity of the Company’s gross unrecognized tax benefits for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012:
 
 
January 3,
2015
 
December 28,
2013
 
December 29,
2012
Unrecognized tax benefits, beginning of period
 
$
18,458

 
$
16,708

 
$
24,711

Increases related to prior period tax positions
 
—

 
—

 
702

Decreases related to prior period tax positions
 
(4,841
)
 
(1,313
)
 
(9,629
)
Increases related to current period tax positions
 
4,329

 
3,678

 
3,985

Settlements
 
(2,345
)
 
—

 
(1,111
)
Expiration of statute of limitations
 
(1,568
)
 
(615
)
 
(1,950
)
Unrecognized tax benefits, end of period
 
$
14,033

 
$
18,458

 
$
16,708



As of January 3, 2015, December 28, 2013 and December 29, 2012, the entire amount of unrecognized tax benefits, if recognized, would reduce the Company’s annual effective tax rate.

The Company provides for potential interest and penalties associated with uncertain tax positions as a part of income tax expense. During 2014, the Company recognized a benefit from interest and penalties related to uncertain tax positions of $3,684. During 2013, the Company recorded potential interest and penalties of $818. During 2012 the Company recognized a benefit from interest and penalties related to uncertain tax positions of $754. As of January 3, 2015, the Company had recorded a liability for potential interest and penalties of $1,759 and $138, respectively. As of December 28, 2013, the Company had recorded a liability for potential interest and penalties of $5,767 and $316, respectively. The Company has not provided for any penalties associated with tax contingencies unless considered probable of assessment. The Company does not expect its unrecognized tax benefits to change significantly over the next 12 months.

During the next 12 months, it is possible the Company could conclude on approximately $1,000 to $2,000 of the contingencies associated with unrecognized tax uncertainties due mainly to the conclusion of audits and the expiration of statutes of limitations. The majority of these resolutions would be achieved through the completion of current income tax examinations.

The Company files a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. The U.S. Internal Revenue Service has completed exams of the U.S. federal income tax returns for years 2007 and prior. With few exceptions, the Company is no longer subject to state and local or non-U.S. income tax examinations by tax authorities for years before 2008.

Lease Commitments
Lease Commitments
Lease Commitments:
 
Initial terms for facility leases are typically 10 to 15 years, with renewal options at five year intervals, and may include rent escalation clauses. As of January 3, 2015, future minimum lease payments due under non-cancelable operating leases with lease terms extending through the year 2059 are as follows:
Fiscal Year
 
Amount
2015
 
$
460,655

2016
 
439,530

2017
 
402,581

2018
 
363,154

2019
 
317,982

Thereafter
 
1,262,623


 
$
3,246,525



The Company anticipates its future minimum lease payments will be partially off-set by future minimum sub-lease income. As of January 3, 2015 and December 28, 2013, future minimum sub-lease income to be received under non-cancelable operating leases is $20,289 and $29,950, respectively.

Net Rent Expense

Net rent expense for 2014, 2013 and 2012 was as follows:
 
 
January 3, 2015
 
December 28, 2013
 
December 29, 2012
Minimum facility rentals
 
$
463,345

 
$
328,581

 
$
300,552

Contingency facility rentals
 
488

 
578

 
907

Equipment rentals
 
8,230

 
5,333

 
5,027

Vehicle rentals
 
53,300

 
29,100

 
18,401

 
 
525,363

 
363,592

 
324,887

Less: Sub-lease income
 
(9,966
)
 
(5,983
)
 
(4,600
)
 
 
$
515,397

 
$
357,609

 
$
320,287



Contingencies
Contingencies
Contingencies:

In the case of all known contingencies, the Company accrues for an obligation, including estimated legal costs, when it is probable and the amount is reasonably estimable. As facts concerning contingencies become known to the Company, the Company reassesses its position with respect to accrued liabilities and other potential exposures. Estimates that are particularly sensitive to future change include legal matters, which are subject to change as events evolve and as additional information becomes available during the administrative and litigation process.
 
The Company’s Western Auto subsidiary, together with other defendants including, but not limited to, automobile manufacturers, automotive parts manufacturers and other retailers, has been named as a defendant in lawsuits alleging injury as a result of exposure to asbestos-containing products. The Company and some of its other subsidiaries also have been named as a defendant in many asbestos-related lawsuits. The automotive products at issue in these lawsuits are primarily brake parts. The plaintiffs have alleged that these products contained asbestos and were manufactured, distributed and/or sold by the various defendants. Many of the cases pending against the Company or its subsidiaries are in the early stages of litigation. The damages claimed against the defendants in some of these proceedings are substantial. Additionally, many of the suppliers and manufacturers of asbestos and asbestos-containing products have dissolved or declared bankruptcy, which will limit plaintiffs’ ability to recover monetary damages from those entities. Although the Company and its subsidiaries diligently defend against these claims, the Company may enter into discussions regarding settlement of these and other lawsuits, and may enter into settlement agreements, if it believes settlement is in the best interests of the Company’s shareholders. The Company believes that many of these claims are at least partially covered by insurance. Based on discovery to date, the Company does not believe the cases currently pending will have a material adverse effect on the Company’s operating results, financial position or liquidity. However, if the Company and/or a subsidiary were to incur an adverse verdict in one or more of these claims and was ordered to pay substantial damages that were not covered by insurance, these claims could have a material adverse effect on its operating results, financial position and liquidity. Historically, our asbestos claims have been inconsistent in fact patterns alleged and number and have been immaterial. Furthermore, the outcome of such legal matters is uncertain and the Company's liability, if any, could vary widely. As a result, we are unable to estimate a possible range of loss with respect to unasserted asbestos claims that may be filed against the Company or any subsidiary in the future. If the number of claims filed against the Company or any of its subsidiaries alleging injury as a result of exposure to asbestos-containing products increases substantially, the costs associated with concluding these claims, including damages resulting from any adverse verdicts, could have a material adverse effect on its operating results, financial position or liquidity in future periods.

The Company is involved in various types of legal proceedings arising from claims of employment discrimination or other types of employment matters as a result of claims by current and former Team Members. The damages claimed against the Company in some of these proceedings are substantial. Because of the uncertainty of the outcome of such legal matters and because the Company’s liability, if any, could vary widely, including the size of any damages awarded if plaintiffs are successful in litigation or any negotiated settlement, the Company cannot reasonably estimate the possible loss or range of loss which may arise. The Company is also involved in various other claims and legal proceedings arising in the normal course of business. Although the final outcome of these legal matters cannot be determined, based on the facts presently known, it is management’s opinion that the final outcome of such claims and lawsuits will not have a material adverse effect on the Company’s financial position, results of operations or liquidity.
Benefit Plans
Benefit Plans
Benefit Plans:

401(k) Plan

The Company maintains a defined contribution benefit plan, which covers substantially all Team Members after one year of service and who have attained the age of 21. The plan allows for Team Member salary deferrals, which are matched at the Company’s discretion. During 2014, GPI also maintained its existing defined contribution plan which allowed for GPI Team Member salary deferrals and discretionary fixed and profit sharing contributions by the Company. The GPI plan was merged into the Advance Auto Part plan at the beginning of fiscal 2015. Company contributions to these plans were $15,208, $10,850 and $10,255 in 2014, 2013 and 2012, respectively.



Deferred Compensation

The Company maintains a non-qualified deferred compensation plan for certain Team Members. This plan provides for a minimum and maximum deferral percentage of the Team Member’s base salary and bonus, as determined by the Retirement Plan Committee. The Company establishes and maintains a deferred compensation liability for this plan. As of January 3, 2015 and December 28, 2013, these liabilities were $16,487 and $14,835, respectively.
Share-Based Compensation
Share-Based Compensation
Share-Based Compensation:

Overview

The Company grants share-based compensation awards to its Team Members and members of its Board of Directors as provided for under the Company’s 2014 Long-Term Incentive Plan, or 2014 LTIP, which was approved by the Company's shareholders on May 14, 2014. Prior to May 14, 2014 the Company granted share-based compensation awards to its Team Members under the 2004 Long-Term Incentive Plan, which expired following the approval of the 2014 LTIP. The Company currently grants share-based compensation in the form of stock appreciation rights (“SARs”), restricted stock units ("RSUs") and deferred stock units (“DSUs”). At January 3, 2015, the Company also had outstanding restricted stock granted prior to the transition to RSUs in 2012.

At January 3, 2015, there were 4,822 shares of common stock available for future issuance under the 2014 Plan based on management’s current estimate of the probable vesting outcome for performance-based awards. The Company issues new shares of common stock upon exercise of stock options and SARs. Availability is determined net of forfeitures and shares withheld for payment of taxes due. Availability also includes shares which became available for reissuance in connection with the exercise of SARs.

General Terms of Awards

The Company’s grants generally include both a time-based service portion and a performance-based portion, which collectively represent the target award.

Time-Vested Awards

The Company's outstanding time-vested awards consist of SARs, RSUs and restricted stock. The SARs generally vest over a three-year period in equal annual installments beginning on the first anniversary of the grant date. All SARs granted are non-qualified, terminate on the seventh anniversary of the grant date, and contain no post-vesting restrictions other than normal trading black-out periods prescribed by the Company’s corporate governance policies.

The RSU and restricted stock grants generally vest over a three-year period in equal annual installments beginning on the first anniversary of the grant date. During the vesting period, holders of RSUs and restricted stock are entitled to receive dividends or in the case of RSUs, dividend equivalents, while holders of restricted stock are also entitled to voting rights. For restricted stock, the Company's shares are considered outstanding at the date of grant, but are restricted until they vest and cannot be sold by the recipient until the restriction has lapsed at the end of the respective vesting period.

Performance-Based Awards

The Company's outstanding performance-based awards consist of SARs and RSUs. Performance awards may vest following a three-year period subject to the Company’s achievement of certain financial goals as specified in the grant agreements. Depending on the Company’s results during the three-year performance period, the actual number of awards vesting at the end of the period may range from 75% to 200% of the target award (50% to 200% for certain officers). Prior to the December 2013 grant, the target award for purposes of applying the performance multiple was defined as the total award including the time-based and performance-based portions. Beginning with the December 2013 grant the target award for purposes of applying the performance multiples is defined solely as the performance portion of the award granted. The performance RSUs do not have dividend equivalent rights or voting rights until the shares are earned and issued following the applicable performance period.

Share-Based Compensation Expense & Cash Flows

Total share-based compensation expense and cash received included in the Company’s consolidated statements of operations and consolidated statements of cash flows, including the related income tax benefits, for 2014, 2013 and 2012 are as follows:

 
 
2014
 
2013
 
2012
Share-based compensation expense
 
$
21,705

 
$
13,191

 
$
15,236

Deferred income tax benefit
 
8,013

 
4,991

 
5,774

 
 
 
 
 
 
 
Proceeds from the issuance of common stock, primarily exercise of stock options
 
6,578

 
3,611

 
8,495

Tax withholdings related to the exercise of stock appreciation rights
 
(7,102
)
 
(21,856
)
 
(26,677
)
Excess tax benefit from share-based compensation
 
10,487

 
16,320

 
23,099



As of January 3, 2015, there was $43,979 of unrecognized compensation expense related to all share-based awards that was expected to be recognized over a weighted average period of 1.6 years. Expense related to the issuance of share-based compensation is included in SG&A in the accompanying consolidated statements of operations. Expense is recognized net of forfeitures, which are estimated based on historical experience.

The fair value of each SAR was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:
Black-Scholes Option Valuation Assumptions
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
Risk-free interest rate (1)
 
1.2
%
 
1.1
%
 
0.5
%
Expected dividend yield
 
0.2
%
 
0.3
%
 
0.3
%
Expected stock price volatility (2)
 
27.0
%
 
26.9
%
 
33.2
%
Expected life of awards (in months) (3)
 
49

 
49

 
49



(1) 
The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the expected life of the award.
(2) 
Expected volatility is determined using a blend of historical and implied volatility.
(3) 
The expected life of the Company's awards represents the estimated period of time until exercise and is based on historical experience of previously granted awards.

Time-Based Share Awards

Stock Options

At December 28, 2013 the Company had 45 options outstanding with a weighted-average exercise price of $41.64. All of the outstanding options were exercised during 2014 and had an aggregate intrinsic value on the date of exercise of $3,747.


Stock Appreciation Rights

The following table summarizes the time-vested SARs activity for 2014:
 
 
Number of Awards
 
Weighted-Average Exercise Price
 
Weighted-Average Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value
 
 
 
 
 
 
 
 
 
Outstanding at December 28, 2013
 
1,090

 
$
61.79

 
 
 
 
Granted
 
—

 
—

 
 
 
 
Exercised
 
(243
)
 
54.88

 
 
 
 
Forfeited
 
(21
)
 
67.71

 
 
 
 
Outstanding at January 3, 2015
 
826

 
$
63.68

 
3.54
 
$
78,332

 
 
 
 
 
 
 
 
 
Vested and expected to vest
 
823

 
$
63.64

 
3.54
 
$
78,107

 
 
 
 
 
 
 
 
 
Outstanding and exercisable
 
714

 
$
61.92

 
3.32
 
$
69,033



The weighted average fair value of time-vested SARs granted during 2013 and 2012 was $18.55 and $19.25 per share, respectively. No time-vested SARs were granted in 2014. The aggregate intrinsic value reflected in the table above and in the table below is based on the Company’s closing stock price of $158.56 as of the last trading day of Fiscal 2014. The aggregate intrinsic value, defined as the amount by which the market price of the stock on the date of exercise exceeded the exercise price, of SARs exercised during 2014, 2013 and 2012 was $18,975, $36,998 and $37,477, respectively.

Restricted Stock Units and Restricted Stock
            
The following table summarizes the RSU and restricted stock activity for the fiscal year ended January 3, 2015:
 
 
Number of Awards
 
Weighted-Average Grant Date Fair Value
 
 
 
 
 
Nonvested at December 28, 2013
 
210

 
$
91.44

Granted
 
190

 
139.43

Vested
 
(94
)
 
87.93

Forfeited
 
(23
)
 
103.75

Nonvested at January 3, 2015
 
283

 
$
123.89



The fair value of each RSU and restricted stock award is determined based on the market price of the Company’s common stock on the date of grant. The weighted average fair value of RSUs and restricted shares granted during 2014, 2013 and 2012 was $139.43, $102.19 and $75.26 per share, respectively. The total grant date fair value of RSUs and restricted shares vested during 2014, 2013 and 2012 was $8,293, $5,035 and $4,734, respectively.

Performance-Based Awards

The number of performance-based awards outstanding are reflected in the following tables based on the number of awards that the Company believed were probable of vesting. Performance-based awards granted during 2014 are presented at the target level, as achievement of the target level was deemed probable as of the grant date. The change in units based on performance represents the change in the number of previously granted awards expected to vest based on the Company's updated probability assessment at January 3, 2015.
Compensation expense for performance-based awards of $6,161, $1,141, and $3,267 in 2014, 2013 and 2012, respectively, was determined based on management’s estimate of the probable vesting outcome.

Performance-Based SARs

The following table summarizes the performance-based SARs activity for 2014:
 
Number of Awards
 
Weighted-Average Exercise Price
 
Weighted-Average Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value
 
 
 
 
 
 
 
 
Outstanding at December 28, 2013
520

 
$
78.21

 
 
 
 
Granted
303

 
141.57

 
 
 
 
Change in units based on performance
(48
)
 
90.57

 
 
 
 
Exercised
(39
)
 
35.18

 
 
 
 
Forfeited
(107
)
 
68.97

 
 
 
 
Outstanding at January 3, 2015
629

 
$
112.01

 
5.47
 
$
29,285

 
 
 
 
 
 
 
 
Vested and expected to vest
533

 
$
108.17

 
4.97
 
$
26,864

 
 
 
 
 
 
 
 
Outstanding and exercisable
92

 
$
36.91

 
1.84
 
$
11,152



The weighted average fair value of performance-based SARs granted during 2014, 2013 and 2012 was $32.41, $23.72 and $19.23 per share, respectively. The aggregate intrinsic value of performance-based SARs exercised during 2014, 2013 and 2012 was $3,814, $14,257 and $34,020, respectively. As of January 3, 2015, the maximum potential payout under the Company’s currently outstanding performance-based SAR awards was 2,167 units.

Performance-Based Restricted Stock Units

The following table summarizes the performance-based RSUs activity for 2014:
 
 
Number of Awards
 
Weighted-Average Grant Date Fair Value
 
 
 
 
 
Nonvested at December 28, 2013
 
182

 
$
75.36

Granted
 
19

 
123.32

Change in units based on performance
 
6

 
104.87

Vested
 
(2
)
 
74.43

Forfeited
 
(10
)
 
76.09

Nonvested at January 3, 2015
 
195

 
$
81.98



The fair value of each performance-based RSU is determined based on the market price of the Company’s common stock on the date of grant. The weighted average fair value of performance-based RSUs granted during 2014, 2013 and 2012 was $123.32, $77.47 and $75.20 per share, respectively. The total grant date fair value of performance-based restricted stock vested during 2014, 2013 and 2012 was $142, $1,290 and $4,858, respectively. As of January 3, 2015, the maximum potential payout under the Company’s currently outstanding performance-based RSUs was 462 shares.



Deferred Stock Units

The Company grants share-based awards annually to its Board of Directors in connection with its annual meeting of stockholders. These awards are granted in the form of DSUs as provided for in the Advance Auto Parts, Inc. Deferred Stock Unit Plan for Non-Employee Directors and Selected Executives, or the DSU Plan. Each DSU is equivalent to one share of common stock of the Company. The DSUs granted in 2014 fully vest after one year of board service and are distributed in common shares after the director’s service on the Board ends. Additionally, the DSU Plan provides for the deferral of compensation earned in the form of (i) an annual retainer for directors, and (ii) wages for certain highly compensated Team Members of the Company. These DSUs are settled in common stock with the participants at a future date, or over a specified time period, as elected by the participants in accordance with the DSU Plan.

The Company granted 7 DSUs in 2014. The weighted average fair value of DSUs granted during 2014, 2013 and 2012 was $122.80, $83.63, and $69.82, respectively. The DSUs are awarded at a price equal to the market price of the Company’s underlying stock on the date of the grant. For 2014, 2013 and 2012, respectively, the Company recognized a total of $862, $840, and $960 on a pre-tax basis, in compensation expense for these DSU grants.

Employee Stock Purchase Plan

The Company also offers an employee stock purchase plan (ESPP). Under the ESPP, eligible Team Members may elect salary deferrals to purchase the Company’s common stock at a discount to its fair market value on the date of purchase. During 2012, the Company increased this discount from 5% to 10%. There are annual limitations on the amounts a Team Member may elect of either $25 per Team Member or 10% of compensation, whichever is less. Under the plan, Team Members acquired 39, 23 and 34 shares in 2014, 2013 and 2012, respectively. As of January 3, 2015, there were 1,100 shares available to be issued under the plan.
Accumulated Other Comprehensive Income Loss
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss):

Comprehensive income is computed as net earnings plus certain other items that are recorded directly to stockholders’ equity during the accounting period. In addition to net earnings, comprehensive income also includes changes in unrealized gains or losses on hedge arrangements, postretirement plan benefits and foreign currency translation gains (losses), net of tax. Accumulated other comprehensive income (loss), net of tax, for 2014, 2013 and 2012 consisted of the following:
 
 
Unrealized Gain
(Loss) on Hedging
Arrangements
 
Unrealized Gain (Loss)
on Postretirement
Plan
 
Currency
Translation
 
Accumulated
Other
Comprehensive
Income (Loss)
Balance, December 31, 2011
 
$
(254
)
 
$
3,058

 
$
—

 
$
2,804

Fiscal 2012 activity
 
254

 
(391
)
 
—

 
(137
)
Balance, December 29, 2012
 
$
—

 
$
2,667

 
$
—

 
$
2,667

Fiscal 2013 activity
 
—

 
1,016

 
—

 
1,016

Balance, December 28, 2013
 
$
—

 
$
3,683

 
$
—

 
$
3,683

Fiscal 2014 activity
 
—

 
(752
)
 
(15,268
)
 
(16,020
)
Balance, January 3, 2015
 
$
—

 
$
2,931

 
$
(15,268
)
 
$
(12,337
)
Segment and Related Information
Segment and Related Information
Segment and Related Information:

As a result of the acquisition of GPI on January 2, 2014, which is described in Note 4, Acquisitions, the Company reevaluated the composition of its reportable segments. Based on this analysis, the Company determined that it operates as a single reportable segment. As of January 3, 2015, the Company's operations are comprised of 5,261 stores and 111 distribution branches, which operate in the United States, Canada, Puerto Rico and the U.S. Virgin Islands primarily under the trade names “Advance Auto Parts,” "Carquest," "Autopart International" and "Worldpac." These locations offer a broad selection of brand name, OEM and proprietary automotive replacement parts, accessories, and maintenance items primarily for domestic and imported cars and light trucks. While the mix of Commercial and DIY customers varies among the four store brands, all of the locations serve customers through similar distribution channels. The Company has begun implementation of its multi-year plan to fully integrate the Carquest company-operated stores and overall operations into Advance Auto Parts and to eventually integrate the availability of all of the Company's product offerings throughout the entire chain.

The Company's Advance Auto Parts operations are currently comprised of three geographic areas. Each of the Advance Auto Parts geographic areas, in addition to Carquest and Worldpac, are individually considered operating segments which are aggregated into one reportable segment. Effective Q1 2015, the Company's three geographic areas expanded to five areas, inclusive of the Carquest operations, making Carquest no longer an operating segment. Included in the Company's overall store operations are sales generated from its e-commerce platforms. The Company's e-commerce platforms, primarily consisting of its online websites and Commercial ordering platforms, are part of its integrated operating approach of serving its Commercial and DIY customers. Through the Company's online ordering platforms, Commercial customers can conveniently place orders with a designated store location for delivery to their places of business or pick-up. The Company's online websites allow its DIY customers to pick up merchandise at a conveniently located store location or have their purchases shipped directly to them. The majority of the Company's online DIY sales are picked up at store locations.

The following table summarizes financial information for each of the Company’s product groups for the years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively.
 
 
2014
 
2013
 
2012
Percentage of Sales, by Product Group
 
 
 
 
 
 
Parts and Batteries
 
69
%
 
67
%
 
65
%
Accessories
 
13
%
 
14
%
 
14
%
Chemicals
 
8
%
 
10
%
 
10
%
Oil
 
8
%
 
9
%
 
10
%
Other
 
2
%
 
—
%
 
1
%
Total
 
100
%
 
100
%
 
100
%
Condensed Consolidating Financial Statements (Notes)
Condensed Consolidating Financial Statements
Condensed Consolidating Financial Statements:

Certain 100% wholly-owned domestic subsidiaries of Advance, including its Material Subsidiaries (as defined in the 2013 Credit Agreement), serve as guarantors of Advance's senior unsecured notes ("Guarantor Subsidiaries"). The subsidiary guarantees related to Advance's senior unsecured notes are full and unconditional and joint and several, and there are no restrictions on the ability of Advance to obtain funds from its Guarantor Subsidiaries. Certain of Advance's wholly-owned subsidiaries, including all of its foreign subsidiaries, do not serve as guarantors of Advance's senior unsecured notes ("Non-Guarantor Subsidiaries"). Beginning in January 2014, the Non-Guarantor Subsidiaries, which were previously minor, no longer qualified as minor as defined by SEC regulations. Accordingly, we present below the condensed consolidating financial information for the Guarantor Subsidiaries and Non-Guarantor Subsidiaries. Investments in subsidiaries of the Company are required to be presented under the equity method, even though all such subsidiaries meet the requirements to be consolidated under GAAP.

Set forth below are condensed consolidating financial statements presenting the financial position, results of operations, and cash flows of (i) Advance, (ii) the Guarantor Subsidiaries, (iii) the Non-Guarantor Subsidiaries, and (iv) the eliminations necessary to arrive at consolidated information for the Company. The statement of operations eliminations relate primarily to the sale of inventory from a Non-Guarantor Subsidiary to a Guarantor Subsidiary. The balance sheet eliminations relate primarily to the elimination of intercompany receivables and payables and subsidiary investment accounts.

The following tables present condensed consolidating balance sheets as of January 3, 2015 and condensed consolidating statements of operations, comprehensive income and cash flows for the year ended January 3, 2015, and should be read in conjunction with the consolidated financial statements herein.

Condensed Consolidating Balance Sheets
As of January 3, 2015

 
Advance Auto Parts, Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
9

 
$
65,345

 
$
39,326

 
$
(9
)
 
$
104,671

Receivables, net
—

 
549,151

 
30,674

 
—

 
579,825

Inventories, net
—

 
3,771,816

 
165,139

 
—

 
3,936,955

Other current assets
4,102

 
113,003

 
3,383

 
(899
)
 
119,589

Total current assets
4,111

 
4,499,315

 
238,522

 
(908
)
 
4,741,040

Property and equipment, net of accumulated depreciation
2

 
1,421,325

 
10,703

 
—

 
1,432,030

Assets held for sale
—

 
615

 
—

 
—

 
615

Goodwill
—

 
940,817

 
54,609

 
—

 
995,426

Intangible assets, net
—

 
689,745

 
58,380

 
—

 
748,125

Other assets, net
12,963

 
36,762

 
683

 
(5,286
)
 
45,122

Investment in subsidiaries
2,057,761

 
280,014

 
—

 
(2,337,775
)
 
—

Intercompany note receivable
1,047,911

 
—

 
—

 
(1,047,911
)
 
—

Due from intercompany, net
—

 
—

 
211,908

 
(211,908
)
 
—

 
$
3,122,748

 
$
7,868,593

 
$
574,805

 
$
(3,603,788
)
 
$
7,962,358

Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
—

 
$
582

 
$
—

 
$
—

 
$
582

Accounts payable
—

 
2,845,043

 
250,322

 
—

 
3,095,365

Accrued expenses
4,884

 
498,505

 
17,284

 
—

 
520,673

Other current liabilities
—

 
115,497

 
11,857

 
(908
)
 
126,446

Total current liabilities
4,884

 
3,459,627

 
279,463

 
(908
)
 
3,743,066

Long-term debt
1,047,911

 
588,400

 
—

 
—

 
1,636,311

Other long-term liabilities
—

 
570,027

 
15,328

 
(5,286
)
 
580,069

Intercompany note payable
—

 
1,047,911

 
—

 
(1,047,911
)
 
—

Due to intercompany, net
67,041

 
144,867

 
—

 
(211,908
)
 
—

Commitments and contingencies

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Stockholders' equity
2,002,912

 
2,057,761

 
280,014

 
(2,337,775
)
 
2,002,912

 
$
3,122,748

 
$
7,868,593

 
$
574,805

 
$
(3,603,788
)
 
$
7,962,358


Condensed Consolidating Statements of Operations
For Fiscal 2014
 
Advance Auto Parts, Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
—

 
$
9,530,953

 
$
527,595

 
$
(214,687
)
 
$
9,843,861

Cost of sales, including purchasing and warehousing costs
—

 
5,231,421

 
373,514

 
(214,687
)
 
5,390,248

Gross profit
—

 
4,299,532

 
154,081

 
—

 
4,453,613

Selling, general and administrative expenses
14,504

 
3,541,370

 
102,370

 
(56,341
)
 
3,601,903

Operating (loss) income
(14,504
)
 
758,162

 
51,711

 
56,341

 
851,710

Other, net:
 
 
 
 
 
 
 
 
 
Interest expense
(52,946
)
 
(20,334
)
 
(128
)
 
—

 
(73,408
)
Other income (expense), net
67,470

 
(9,140
)
 
1,103

 
(56,341
)
 
3,092

Total other, net
14,524

 
(29,474
)
 
975

 
(56,341
)
 
(70,316
)
Income before provision for income taxes
20

 
728,688

 
52,686

 
—

 
781,394

Provision for income taxes
296

 
277,769

 
9,504

 
—

 
287,569

(Loss) income before equity in earnings of subsidiaries
(276
)
 
450,919

 
43,182

 
—

 
493,825

Equity in earnings of subsidiaries
494,101

 
43,182

 
—

 
(537,283
)
 
—

Net income
$
493,825

 
$
494,101

 
$
43,182

 
$
(537,283
)
 
$
493,825




Condensed Consolidating Statements of Comprehensive Income
For Fiscal 2014

 
Advance Auto Parts, Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net income
$
493,825

 
$
494,101

 
$
43,182

 
$
(537,283
)
 
$
493,825

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Changes in net unrecognized other postretirement benefit costs
—

 
(752
)
 
—

 
—

 
(752
)
Currency translation
—

 
—

 
(15,268
)
 
—

 
(15,268
)
Equity in other comprehensive loss of subsidiaries
(16,020
)
 
(15,268
)
 
—

 
31,288

 
—

Other comprehensive loss
(16,020
)
 
(16,020
)
 
(15,268
)
 
31,288

 
(16,020
)
Comprehensive income
$
477,805

 
$
478,081

 
$
27,914

 
$
(505,995
)
 
$
477,805






Condensed Consolidating Statements of Cash Flows
For Fiscal 2014

 
Advance Auto Parts, Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by operating activities
$
—

 
$
666,566

 
$
42,425

 
$
—

 
$
708,991

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property and equipment
—

 
(224,894
)
 
(3,552
)
 
—

 
(228,446
)
Business acquisitions, net of cash acquired
—

 
(2,059,987
)
 
(796
)
 
—

 
(2,060,783
)
Proceeds from sales of property and equipment
—

 
974

 
18

 
—

 
992

Net cash used in investing activities
—

 
(2,283,907
)
 
(4,330
)
 
—

 
(2,288,237
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Increase in bank overdrafts
—

 
16,228

 
—

 
(9
)
 
16,219

Borrowings under credit facilities
—

 
2,238,200

 
—

 
—

 
2,238,200

Payments on credit facilities
—

 
(1,654,800
)
 
—

 
—

 
(1,654,800
)
Dividends paid
—

 
(17,580
)
 
—

 
—

 
(17,580
)
Proceeds from the issuance of common stock, primarily exercise of stock options
—

 
6,578

 
—

 
—

 
6,578

Tax withholdings related to the exercise of stock appreciation rights
—

 
(7,102
)
 
—

 
—

 
(7,102
)
Excess tax benefit from share-based compensation
—

 
10,487

 
—

 
—

 
10,487

Repurchase of common stock
—

 
(5,154
)
 
—

 
—

 
(5,154
)
Contingent consideration related to business acquisitions
—

 
(10,047
)
 
—

 
—

 
(10,047
)
Other
—

 
(890
)
 
—

 
—

 
(890
)
Net cash provided by financing activities
—

 
575,920

 
—

 
(9
)
 
575,911

Effect of exchange rate changes on cash
—

 
—

 
(4,465
)
 
—

 
(4,465
)
Net (decrease) increase in cash and cash equivalents
—

 
(1,041,421
)
 
33,630

 
(9
)
 
(1,007,800
)
Cash and cash equivalents, beginning of period
9

 
1,106,766

 
5,696

 
—

 
1,112,471

Cash and cash equivalents, end of period
$
9

 
$
65,345

 
$
39,326

 
$
(9
)
 
$
104,671

Quarterly Financial Data (Unaudited)
Quarterly Financial Data (Unaudited)
Quarterly Financial Data (unaudited):

The following table summarizes quarterly financial data for Fiscal 2014 and 2013:
2014
 
First
 
Second
 
Third
 
Fourth
 
 
(16 weeks)
 
(12 weeks)
 
(12 weeks)
 
(13 weeks)
Net sales
 
$
2,969,499

 
$
2,347,697

 
$
2,289,456

 
$
2,237,209

Gross profit
 
1,353,122

 
1,062,108

 
1,034,442

 
1,003,941

Net income
 
147,726

 
139,488

 
122,177

 
84,434

 
 
 
 
 
 
 
 
 
Basic earnings per share
 
2.02

 
1.91

 
1.67

 
1.15

Diluted earnings per share
 
2.01

 
1.89

 
1.66

 
1.15

 
 
 
 
 
 
 
 
 
2013
 
First
 
Second
 
Third
 
Fourth
 
 
(16 weeks)
 
(12 weeks)
 
(12 weeks)
 
(12 weeks)
Net sales
 
$
2,015,304

 
$
1,549,553

 
$
1,520,144

 
$
1,408,813

Gross profit
 
1,008,206

 
779,223

 
762,940

 
701,777

Net income
 
121,790

 
116,871

 
103,830

 
49,267

 
 
 
 
 
 
 
 
 
Basic earnings per share
 
1.66

 
1.60

 
1.42

 
0.68

Diluted earnings per share
 
1.65

 
1.59

 
1.42

 
0.67


Note: Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not be equal to the per share amount for the year.
Valuation and Qualifying Accounts
Schedule II Valuation and Qualifying Accounts
ADVANCE AUTO PARTS, INC.
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS
(in thousands)

Allowance for doubtful accounts receivable:
 
Balance at
Beginning
of Period
 
Charges to
Expenses
 
Deductions
 
 
Other
 
Balance at
End of
Period
December 29, 2012
 
$
4,056

 
$
4,127

 
$
(2,264
)
(1) 
 
$
—

 
$
5,919

December 28, 2013
 
5,919

 
11,955

 
(4,995
)
(1) 
 
416

(2) 
13,295

January 3, 2015
 
13,295

 
17,182

 
(14,325
)
(1) 
 
—

 
16,152


(1) 
Accounts written off during the period. These amounts did not impact the Company’s statement of operations for any year presented.
(2) 
Reserves assumed in the acquisition of B.W.P. Distributors, Inc.


Note: Other valuation and qualifying accounts have not been reported in this schedule because they are either not applicable or because the information has been included elsewhere in this report.
Summary of Significant Accounting Policies (Policies)
Accounting Period [Policy Text Block] 
Accounting Period

The Company’s fiscal year ends on the Saturday nearest the end of December. Fiscal year 2014 contained 53 weeks and fiscal years 2013 and 2012 each contained 52 weeks. The additional week of operations for Fiscal 2014 was included in the Company's fourth quarter. All references herein for the years 2014, 2013 and 2012 represent the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively.
Principles of Consolidation [Policy Text Block] 
Principles of Consolidation

The consolidated financial statements include the accounts of Advance and its wholly owned subsidiaries. All intercompany balances and transactions have been eliminated in consolidation.
Use of Estimates, Policy [Policy Text Block] 
Use of Estimates

The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates.
Cash, Cash Equivalents and Bank Overdrafts [Policy Text Block] 
Cash, Cash Equivalents and Bank Overdrafts

Cash and cash equivalents consist of cash in banks and money market funds with original maturities of three months or less. Included in cash equivalents are credit card and debit card receivables from banks, which generally settle within two to four business days. Credit and debit card receivables included in Cash and cash equivalents as of January 3, 2015 and December 28, 2013 were $28,843 and $28,828, respectively. Bank overdrafts consist of outstanding checks not yet presented to a bank for settlement, net of cash held in accounts with right of offset. Bank overdrafts of $22,015 and $5,796 are included in Other current liabilities as of January 3, 2015 and December 28, 2013, respectively.
Receivables, Policy [Policy Text Block] 
Receivables

Receivables, net consist primarily of receivables from Commercial customers and vendors. The Company grants credit to certain Commercial customers who meet the Company’s pre-established credit requirements. The Company maintains allowances for doubtful accounts for estimated losses resulting from the inability of the Company’s Commercial customers to make required payments. The Company considers the following factors when determining if collection is reasonably assured: customer creditworthiness, past transaction history with the customer, current economic and industry trends and changes in customer payment terms. Concentrations of credit risk with respect to these receivables are limited because the Company’s customer base consists of a large number of small customers, spreading the credit risk across a broad base. The Company also controls this credit risk through credit approvals, credit limits and accounts receivable and credit monitoring procedures.

The Company’s vendor receivables are established as it receives concessions from its vendors through a variety of programs and arrangements, including allowances for new stores and warranties, volume purchase rebates and co-operative advertising. Amounts receivable from vendors also include amounts due to the Company for changeover merchandise and product returns. The Company regularly reviews vendor receivables for collectibility and assesses the need for a reserve for uncollectible amounts based on an evaluation of the vendors’ financial positions and corresponding abilities to meet financial obligations. The Company’s allowance for doubtful accounts related to vendor receivables is not significant.

Inventory, Policy [Policy Text Block] 
Inventory

Inventory amounts are stated at the lower of cost or market. The cost of the Company’s merchandise inventory is primarily determined using the last-in, first-out (“LIFO”) method. Under the LIFO method, the Company’s cost of sales reflects the costs of the most recently purchased inventories, while the inventory carrying balance represents the costs relating to prices paid in prior years.
Vendor Incentives [Policy Text Block] 
Vendor Incentives

The Company receives incentives in the form of reductions to amounts owed and/or payments from vendors related to cooperative advertising allowances, volume rebates and other promotional considerations. Many of these incentives are under long-term agreements in excess of one year, while others are negotiated on an annual basis or less (short-term). Cooperative advertising allowances provided as a reimbursement of specific, incremental and identifiable costs incurred to promote a vendor’s products are included as an offset to selling, general and administrative expenses, or SG&A, when the cost is incurred. Volume rebates and cooperative advertising allowances not meeting the requirements for offset in SG&A are recorded initially as a reduction to inventory as they are earned based on inventory purchases. These deferred amounts are included as a reduction to cost of sales as the inventory is sold. Total deferred vendor incentives included as a reduction of Inventory was $179,785 and $111,304 as of January 3, 2015 and December 28, 2013, respectively.

Similarly, the Company recognizes other promotional incentives earned under long-term agreements not specifically related to volume of purchases as a reduction to cost of sales. However, these incentives are not deferred as a reduction of inventory and are recognized based on the cumulative net purchases as a percentage of total estimated net purchases over the life of the agreement. Short-term incentives (terms less than one year) are generally recognized as a reduction to cost of sales over the duration of any short-term agreements.

Amounts received or receivable from vendors that are not yet earned are reflected as deferred revenue in the accompanying consolidated balance sheets. Management’s estimate of the portion of deferred revenue that will be realized within one year of the balance sheet date has been included in Other current liabilities in the accompanying consolidated balance sheets. Earned amounts that are receivable from vendors are included in Receivables and Other assets on the accompanying consolidated balance sheets.
Advertising Costs, Policy [Policy Text Block] 
Advertising Costs

The Company expenses advertising costs as incurred. Advertising expense, net of vendor promotional funds, was $96,463, $69,116 and $83,871 in 2014, 2013 and 2012, respectively. Vendor promotional funds, which reduced advertising expense, amounted to $21,814 and $18,622 and $11,445 in 2014, 2013 and 2012, respectively.
Preopening Expenses [Policy Text Block] 
Preopening Expenses

Preopening expenses, which consist primarily of payroll and occupancy costs related to the opening of new stores, are expensed as incurred.
Income Taxes [Policy Text Block] 
Income Taxes

The Company accounts for income taxes under the asset and liability method which requires the recognition of deferred tax assets and liabilities for the expected future tax consequences of events that have been included in the financial statements. Under the asset and liability method, deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. The effect of a change in tax rates on deferred tax assets and liabilities is recognized in income in the period of the enactment date.

The Company recognizes tax benefits and/or tax liabilities for uncertain income tax positions based on a two-step process. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step requires the Company to estimate and measure the tax benefit as the largest amount that is more than 50% likely to be realized upon ultimate settlement. It is inherently difficult and subjective to estimate such amounts, as the Company must determine the probability of various possible outcomes.

The Company reevaluates these uncertain tax positions on a quarterly basis or when new information becomes available to management. The reevaluations are based on many factors, including but not limited to, changes in facts or circumstances, changes in tax law, successfully settled issues under audit, expirations due to statutes of limitations, and new federal or state audit activity. Any change in either the Company’s recognition or measurement could result in the recognition of a tax benefit or an increase to the tax accrual. 

The Company also follows guidance provided on other items relevant to the accounting for income taxes throughout the year, as applicable, including derecognition of benefits, classification, interest and penalties, accounting in interim periods, disclosure and transition. Refer to Note 15, Income Taxes, for a further discussion of income taxes.
Self-Insurance [Policy Text Block] 
Self-Insurance

The Company is self-insured for general and automobile liability, workers’ compensation and health care claims of its employees, or Team Members, while maintaining stop-loss coverage with third-party insurers to limit its total liability exposure. Expenses associated with these liabilities are calculated for (i) claims filed, (ii) claims incurred but not yet reported and (iii) projected future claims using actuarial methods followed in the insurance industry as well as the Company’s historical claims experience. The Company includes the current and long-term portions of its self-insurance reserves in Accrued expenses and Other long-term liabilities, respectively.
Warranty Liabilities [Policy Text Block] 
Warranty Liabilities

The warranty obligation on the majority of merchandise sold by the Company with a manufacturer's warranty is the responsibility of the Company’s vendors. However, the Company has an obligation to provide customers free replacement of certain merchandise or merchandise at a prorated cost if under a warranty and not covered by the manufacturer. Merchandise sold with warranty coverage by the Company primarily includes batteries but may also include other parts such as brakes and shocks. The Company estimates its warranty obligation at the time of sale based on the historical return experience, sales level and cost of the respective product sold. To the extent vendors provide upfront allowances in lieu of accepting the obligation for warranty claims and the allowance is in excess of the related warranty expense, the excess is recorded as a reduction to cost of sales.
Revenue Recognition, Policy [Policy Text Block] 
Revenue Recognition

The Company recognizes revenue at the time the sale is made, at which time the Company’s walk-in customers take immediate possession of the merchandise or same-day delivery is made to the Company’s commercial delivery customers, which include certain independently-owned store locations. For e-commerce sales, revenue is recognized either at the time of pick-up at one of the Company’s store locations or at the time of shipment depending on the customer’s order designation. Sales are recorded net of discounts and rebates, sales taxes and estimated returns and allowances. The Company estimates the reduction to sales and cost of sales for returns based on current sales levels and the Company’s historical return experience. The Company’s reserve for sales returns and allowances was not material as of January 3, 2015 and December 28, 2013.

Share-Based Payments [Policy Text Block] 
Share-Based Payments

The Company provides share-based compensation to its Team Members and Board of Directors. The Company is required to exercise judgment and make estimates when determining the (i) fair value of each award granted and (ii) projected number of awards expected to vest. The Company calculates the fair value of all share-based awards at the date of grant and uses the straight-line method to amortize this fair value as compensation cost over the requisite service period.
Derivatives Instruments and Hedging Activities [Policy Text Block] 
Derivative Instruments and Hedging Activities
 
The Company’s accounting policy for derivative financial instruments is based on whether the instruments meet the criteria for designation as cash flow or fair value hedges. The criteria for designating a derivative as a hedge include the assessment of the instrument’s effectiveness in risk reduction, matching of the derivative instrument to its underlying transaction and the probability that the underlying transaction will occur. For derivatives with cash flow hedge designation, the Company would recognize the after-tax gain or loss from the effective portion of the hedge as a component of Accumulated other income (loss) and reclassify it into earnings in the same period or periods in which the hedged transaction affected earnings, and within the same income statement line item as the impact of the hedged transaction. For derivatives with fair value hedge accounting designation, the Company would recognize gains or losses from the change in the fair value of these derivatives, as well as the offsetting change in the fair value of the underlying hedged item, in earnings.
Foreign Currency Translation [Policy Text Block] 
Foreign Currency Translation

The assets and liabilities of the Company's Canadian operations are translated into U.S. dollars at current exchange rates, and revenues, expenses and cash flows are translated at average exchange rates for the fiscal year. Resulting translation adjustments are reflected as a separate component in the Consolidated Statements of Comprehensive Income. Gains and losses from foreign currency transactions, which are included in Other income, net, have not been significant for any of the periods presented.
Accumulated Other Comprehensive Income (Loss) [Policy Text Block] 
Accumulated Other Comprehensive Income (Loss)

Comprehensive income (loss) is a measure that reports all changes in equity resulting from transactions and other economic events during the period. The changes in accumulated other comprehensive income refer to revenues, expenses, gains, and losses that are included in other comprehensive income but excluded from net income.

The Company’s Accumulated other comprehensive income (loss) is comprised of foreign currency translation gains (losses), the net unrealized gain associated with the Company's postretirement benefit plan and the unamortized portion of the previously recorded unrecognized gains on interest rate swaps and forward treasury rate locks.
Goodwill and Other Intangible Assets [Policy Text Block] 
Goodwill and Other Intangible Assets

Goodwill is the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations accounted for under the purchase method. The Company tests goodwill and indefinite-lived intangible assets for impairment annually as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. These indicators would include a significant change in operating performance, the business climate, legal factors, competition, or a planned sale or disposition of a significant portion of the business, among other factors. The Company reviews finite-lived intangible assets for impairment in accordance with its policy for the valuation of long-lived assets.
Valuation of Long-Lived Assets [Policy Text Block] 
Valuation of Long-Lived Assets

The Company evaluates the recoverability of its long-lived assets whenever events or changes in circumstances indicate that the carrying amount of an asset might not be recoverable and exceeds its fair value.

Significant factors, which would trigger an impairment review, include the following:

•
Significant decrease in the market price of a long-lived asset (asset group);
•
Significant changes in how assets are used or are planned to be used;
•
Significant adverse change in legal factors or business climate, including adverse regulatory action;
•
Significant negative industry trends;
•
An accumulation of costs significantly in excess of the amount originally expected for the acquisition or construction of a long-lived asset (asset group);
•
Significant changes in technology;
•
A current-period operating or cash flow loss combined with a history of operating or cash flow losses, or a projection or forecast that demonstrates continuing losses associated with the use of a long-lived asset (asset group); or
•
A current expectation that, more likely than not, a long-lived asset (asset group) will be sold or otherwise disposed of significantly before the end of its previously estimated useful life.

When such an event occurs, the Company estimates the undiscounted future cash flows expected to result from the use of the long-lived asset (asset group) and its eventual disposition. These impairment evaluations involve estimates of asset useful lives and future cash flows. If the undiscounted expected future cash flows are less than the carrying amount of the asset and the carrying amount of the asset exceeds its fair value, an impairment loss is recognized. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value based on quoted market prices or other valuation techniques (e.g., discounted cash flow analysis).
Earnings per Share [Policy Text Block] 
Earnings per Share

The Company uses the two-class method to calculate earnings per share. Under the two-class method, unvested share-based payment awards that contain non-forfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are considered participating securities and are included in the computation of earnings per share. Certain of the Company’s shares granted to Team Members in the form of restricted stock and restricted stock units are considered participating securities.

Accordingly, earnings per share is computed by dividing net income attributable to the Company’s common shareholders by the weighted-average common shares outstanding during the period. The two-class method is an earnings allocation formula that determines income per share for each class of common stock and participating security according to dividends declared and participation rights in undistributed earnings. Diluted income per common share reflects the more dilutive earnings per share amount calculated using the treasury stock method or the two-class method.

Basic earnings per share of common stock has been computed based on the weighted-average number of common shares outstanding during the period, which is reduced by stock held in treasury and shares of nonvested restricted stock. Diluted earnings per share is calculated by including the effect of dilutive securities. Diluted earnings per share of common stock reflects the weighted-average number of shares of common stock outstanding, outstanding deferred stock units and the impact of outstanding stock options and stock appreciation rights (collectively “share-based awards”). Share-based awards containing performance conditions are included in the dilution impact as those conditions are met.

Lease Accounting [Policy Text Block] 
Lease Accounting

The Company leases certain store locations, distribution centers, office spaces, equipment and vehicles. The total amount of minimum rent is expensed on a straight-line basis over the initial term of the lease unless external economic factors exist such that renewals are reasonably assured, in which case the Company would include the renewal period in its amortization period. In those instances, the renewal period would be included in the lease term for purposes of establishing an amortization period and determining if such lease qualified as a capital or operating lease. In addition to minimum fixed rental payments, some leases provide for contingent facility rentals. Differences between the calculated rent expense and cash payments are recorded as a liability within the Accrued expenses and Other long-term liabilities captions in the accompanying consolidated balance sheets, based on the terms of the lease. Deferred rent was $60,275 and $50,638 as of January 3, 2015 and December 28, 2013, respectively. Contingent facility rentals are determined on the basis of a percentage of sales in excess of stipulated minimums for certain store facilities as defined in the individual lease agreements. Most of the leases provide that the Company pay taxes, maintenance, insurance and certain other expenses applicable to the leased premises. Management expects that in the normal course of business leases that expire will be renewed or replaced by other leases.
Property and Equipment [Policy Text Block] 
Property and Equipment

Property and equipment are stated at cost, less accumulated depreciation, or at fair value at acquisition if acquired through a business combination. Expenditures for maintenance and repairs are charged directly to expense when incurred; major improvements are capitalized. When items are sold or retired, the related cost and accumulated depreciation are removed from the account balances, with any gain or loss reflected in the consolidated statements of operations.

Depreciation of land improvements, buildings, furniture, fixtures and equipment, and vehicles is provided over the estimated useful lives of the respective assets using the straight-line method. Depreciation of building and leasehold improvements is provided over the shorter of the original useful lives of the respective assets or the term of the lease using the straight-line method.
Closed Store Liabilities and Exit Activities [Policy Text Block] 
Closed Store Liabilities and Exit Activities

The Company continually reviews the operating performance of its existing store locations and closes or relocates certain stores identified as underperforming or delivering strategically or financially unacceptable results. Expenses accrued pertaining to closed store exit activities are included in the Company’s closed store liabilities, within Accrued expenses and Other long-term liabilities in the accompanying consolidated balance sheets, and recognized in SG&A in the accompanying consolidated statements of operations at the time the facilities actually close. Closed store liabilities include the present value of the remaining lease obligations and management’s estimate of future costs of insurance, property tax and common area maintenance expenses (reduced by the present value of estimated revenues from subleases and lease buyouts).

From time to time closed store liability estimates require revisions, primarily due to changes in assumptions associated with revenue from subleases. The effect of accretion and changes in estimates for our closed store liabilities are included in SG&A in the accompanying consolidated statements of operations at the time the changes in estimates are made.

Employees receiving severance benefits as the result of a store closing or other restructuring activity are required to render service until they are terminated in order to receive benefits. The severance is recognized in SG&A in the accompanying consolidated statements of operations over the related service period. Other restructuring costs, including costs to relocate employees, are recognized in the period in which the liability is incurred.

The Company also evaluates and determines if the results from the closure of store locations should be reported as discontinued operations based on the elimination of the operations and associated cash flows from the Company’s ongoing operations. Operations and associated cash flows transferred to another store in the local market are not considered eliminated in the evaluation of discontinued operations.
Cost of Sales and Selling, General and Administrative Expenses [Policy Text Block] 
Cost of Sales and Selling, General and Administrative Expenses

The following table identifies the primary costs classified in each major expense category:
Cost of Sales
 
 
Ÿ
Total cost of merchandise sold including:
 
 
 
 
-
Freight expenses associated with moving
 
 
 
 
 
merchandise inventories from our vendors to
 
 
 
 
 
our distribution center,
 
 
 
 
-
Vendor incentives, and
 
 
 
 
-
Cash discounts on payments to vendors;
 
 
 
Ÿ
Inventory shrinkage;
 
 
 
Ÿ
Defective merchandise and warranty costs;
 
 
 
Ÿ
Costs associated with operating our distribution
 
 
 
 
network, including payroll and benefit costs,
 
 
 
 
occupancy costs and depreciation; and
 
 
 
Ÿ
Freight and other handling costs associated with
 
 
 
 
moving merchandise inventories through our
 
 
 
 
supply chain
 
 
 
 
-
From our distribution centers to our store and
 
 
 
 
 
branch locations and customers, and
 
 
 
 
-
From certain of our larger stores which stock a
 
 
 
 
 
wider variety and greater supply of inventory (“HUB
 
 
 
 
 
stores”) to our stores after the customer has
 
 
 
 
 
special-ordered the merchandise.
 
 
 
Selling, General and Administrative Expenses, Policy [Policy Text Block] 
Cost of Sales and Selling, General and Administrative Expenses

The following table identifies the primary costs classified in each major expense category:
 
 
SG&A
 
 
 
Ÿ
Payroll and benefit costs for store and corporate
 
 
 
 
 
Team Members;
 
 
 
 
Ÿ
Occupancy costs of store and corporate facilities;
 
 
 
 
Ÿ
Depreciation and amortization related to store and
 
 
 
 
 
corporate assets;
 
 
 
 
Ÿ
Advertising;
 
 
 
Ÿ
Costs associated with our Commercial delivery
 
 
 
 
program, including payroll and benefit costs,
 
 
 
 
and transportation expenses associated with moving
 
 
 
 
merchandise inventories from our stores and branches to
 
 
 
 
our customer locations;
 
 
 
Ÿ
Self-insurance costs;
 
 
 
Ÿ
Professional services;
 
 
 
Ÿ
Other administrative costs, such as credit card
 
 
 
 
 
service fees, supplies, travel and lodging;
 
 
 
 
Ÿ
Closed store expense;
 
 
 
 
Ÿ
Impairment charges;
 
 
 
 
Ÿ
GPI acquisition-related expenses and integration costs;
 
 
 
 
 
and
 
 
 
 
Ÿ
BWP acquisition-related expenses and integration costs.
New Accounting Pronouncements [Policy Text Block] 
New Accounting Pronouncements

In August 2014, the Financial Accounting Standard Board, or FASB, issued Accounting Standard Update, or ASU, 2014-15 “Presentation of Financial Statements - Going Concern (Subtopic 205-40): Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern." This new standard requires management to perform interim and annual assessments of an entity's ability to continue as a going concern within one year of the date the financial statements are issued. An entity must provide certain disclosures if conditions or events raise substantial doubt about the entity's ability to continue as a going concern. This ASU is effective for annual periods ending after December 15, 2016, and interim periods thereafter; earlier adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows.

In June 2014, the FASB, issued ASU 2014-12 “Compensation - Stock Compensation (Topic 718): Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period." The amendments in this ASU require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this ASU are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015; earlier adoption is permitted. The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows.

In May 2014, the FASB issued ASU 2014-09 "Revenue from Contracts with Customers." This ASU is a comprehensive new revenue recognition model that expands disclosure requirements and requires a company to recognize revenue to depict the transfer of goods or services to a customer at an amount that reflects the consideration it expects to receive in exchange for those goods or services. This ASU is effective for annual reporting periods beginning after December 15, 2016 and early adoption is not permitted. Accordingly, the Company will adopt this ASU on January 1, 2017. We are currently evaluating the impact of the adoption of this guidance on the Company's consolidated financial condition, results of operations and cash flows.

In April 2014, the FASB issued ASU No. 2014-08 "Presentation of Financial Statements (Topic 205) and Property, Plant, and Equipment (Topic 360): Reporting Discontinued Operations and Disclosures of Disposals of Components of Equity", which amends the definition of a discontinued operation in Accounting Standards Codification, or ASC, 205-20 and requires entities to provide additional disclosures about discontinued operations as well as disposal transactions that do not meet the discontinued operations criteria. The new guidance changes the definition of a discontinued operation and requires discontinued operations treatment for disposals of a component or group of components that represents a strategic shift that has or will have a major impact on an entity’s operations or financial results. The ASU is effective prospectively for all disposals (except disposals classified as held for sale before the adoption date) or components initially classified as held for sale in periods beginning on or after December 15, 2014; earlier adoption is permitted. The adoption of this guidance affects prospective presentation of disposals and therefore, is not expected to have a material impact on the Company's consolidated financial condition, results of operations or cash flows.

In July 2013, the FASB issued ASU No. 2013-11 “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.”  Under ASU 2013-11 an entity is required to present an unrecognized tax benefit, or a portion of an unrecognized tax benefit, in its financial statements as a reduction to a deferred tax asset for a net operating loss carryforward, a similar tax loss, or a tax credit carryforward. If a net operating loss carryforward, a similar tax loss, or a tax credit carryforward is not available at the reporting date, the unrecognized tax benefit should be presented in the financial statements as a liability and should not be combined with deferred tax assets. ASU 2013-11 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2013. The adoption of this guidance affects presentation only and, therefore, had no material impact on the Company's consolidated financial condition, results of operations or cash flows.

Summary of Significant Accounting Policies (Tables)
Self-insurance reserves [Table Text Block]
The following table presents changes in the Company’s total self-insurance reserves:
 
 
January 3, 2015
 
December 28, 2013
 
December 29, 2012
Self-insurance reserves, beginning of period
$
98,475

 
$
94,548

 
$
98,944

Additions to self-insurance reserves
159,752

 
120,782

 
105,670

Acquired reserves
41,673

 
4,195

 
—

Reserves utilized
(162,867
)
 
(121,050
)
 
(110,066
)
Self-insurance reserves, end of period
$
137,033

 
$
98,475

 
$
94,548

Inventories, net (Tables)
Schedule of Inventory, Current [Table Text Block] 

Inventory balances at the end of 2014 and 2013 were as follows:
 
January 3,
2015
 
December 28,
2013
Inventories at FIFO, net
$
3,814,123

 
$
2,424,795

Adjustments to state inventories at LIFO
122,832

 
131,762

Inventories at LIFO, net
$
3,936,955

 
$
2,556,557

Inventory Reserves [Table Text Block] 

The following table presents changes in the Company’s inventory reserves for years ended January 3, 2015, December 28, 2013 and December 29, 2012:
 
January 3,
2015
 
December 28,
2013
 
December 29,
2012
Inventory reserves, beginning of period
$
37,523

 
$
31,418

 
$
30,786

Additions to inventory reserves
92,773

 
65,466

 
72,852

Reserves utilized
(80,857
)
 
(59,361
)
 
(72,220
)
Inventory reserves, end of period
$
49,439

 
$
37,523

 
$
31,418

Acquisitions (Tables)
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] 
The following table summarizes the consideration paid for GPI and the amounts of the assets acquired and liabilities assumed as of the acquisition date:

Total Consideration
 
$
2,080,804

 
 
 
Recognized amounts of identifiable assets acquired and liabilities assumed
 
 
Cash and cash equivalents
 
$
25,176

Receivables
 
255,997

Inventory
 
1,159,886

Other current assets
 
118,871

Property, plant and equipment
 
162,545

Intangible assets
 
756,571

Other assets
 
1,741

Accounts payable
 
(704,006
)
Accrued and other current liabilities
 
(136,784
)
Long-term liabilities
 
(356,584
)
Total identifiable net assets
 
1,283,413

 
 
 
Goodwill
 
797,391

 
 
 
Total acquired net assets
 
$
2,080,804

Business Acquisition, Pro Forma Information [Table Text Block] 
The following unaudited consolidated pro forma financial information combines the respective measure of the Company for Fiscal 2013 and GPI for the twelve months ended December 31, 2013. The pro forma financial information has been prepared by adjusting the historical data to give effect to the acquisition as if it had occurred on December 30, 2012 (the first day of the Company's fiscal 2013).
 
 
December 28,
2013
 
 
(52 weeks)
Pro forma:
 
 
Net sales
 
$
9,456,405

 
 
 
Net income
 
$
428,562

 
 
 
Basic earnings per share
 
$
5.88

 
 
 
Diluted earnings per share
 
$
5.84

Exit Activities and Impairment (Tables)
Schedule of Restructuring Reserve by Type of Cost [Table Text Block]
A summary of the Company’s restructuring liabilities, which are recorded in accrued expenses (current portion) and long-term liabilities (long-term portion) in the accompanying condensed consolidated balance sheet, are presented in the following table:
 
 
Closed Store Lease Obligations
 
Severance
 
Relocation and Other Exit Costs
 
Total
 
For the year ended January 3, 2015:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Balance, December 28, 2013
 
$
11,212

 
$
—

 
$
—

 
$
11,212

 
Reserves acquired with GPI
 
3,455

 
—

 
—

 
3,455

 
Reserves established
 
11,138

 
8,038

 
7,053

 
26,229

 
Change in estimates
 
1,053

 
(1,307
)
 
—

 
(254
)
 
Cash payments
 
(7,588
)
 
(927
)
 
(5,237
)
 
(13,752
)
 
Balance, January 3, 2015
 
$
19,270

 
$
5,804

 
$
1,816

 
$
26,890

 
Goodwill and Intangible Assets (Tables)
Schedule of Goodwill [Table Text Block] 
Goodwill

The following table reflects the carrying amount of goodwill and the changes in goodwill carrying amounts.
 
January 3,
2015
 
December 28,
2013
 
(53 weeks ended)
 
(52 weeks ended)
Goodwill, beginning of period
$
199,835

 
$
76,389

Acquisitions
798,043

 
123,446

Changes in foreign currency exchange rates
(2,452
)
 
—

 
 
 
 
Goodwill, end of period
$
995,426

 
$
199,835

Schedule of Indefinite-Lived Intangible Assets [Table Text Block] 
The gross carrying amounts and accumulated amortization of acquired intangible assets as of January 3, 2015 and December 28, 2013 are comprised of the following:
 
 
January 3, 2015
 
December 28, 2013
 
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net
 
Gross Carrying Amount
 
Accumulated
Amortization
 
Net
Amortized intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Customer relationships
 
$
362,483

 
$
(40,609
)
 
$
321,874

 
$
33,601

 
$
(10,309
)
 
$
23,292

Acquired technology
 
8,850

 
(8,569
)
 
281

 
8,850

 
(6,381
)
 
2,469

Favorable leases
 
56,342

 
(11,939
)
 
44,403

 
—

 
—

 
—

Non-compete and other
 
56,780

 
(14,596
)
 
42,184

 
6,085

 
(2,524
)
 
3,561

 
 
484,455

 
(75,713
)
 
408,742

 
48,536

 
(19,214
)
 
29,322

 
 
 
 
 
 
 
 
 
 
 
 
 
Unamortized intangible assets:
 
 
 
 
 
 
 
 
 
 
 
 
Brands, trademark and tradenames
 
339,383

 
—

 
339,383

 
20,550

 
—

 
20,550

 
 
 
 
 
 
 
 
 
 
 
 
 
Total intangible assets
 
$
823,838

 
$
(75,713
)
 
$
748,125

 
$
69,086

 
$
(19,214
)
 
$
49,872

Schedule of Expected Amortization Expense [Table Text Block] 
The table below shows expected amortization expense for the next five years for acquired intangible assets recorded as of January 3, 2015:
Fiscal Year
 
Amount
2015
 
$
52,115

2016
 
48,312

2017
 
45,959

2018
 
42,948

2019
 
32,187

Thereafter
 
187,221

Receivables, net (Tables)
Schedule of Accounts Receivable [Table Text Block]
Receivables consist of the following:
 
 
January 3,
2015
 
December 28,
2013
Trade
 
$
360,922

 
$
145,670

Vendor
 
222,476

 
138,336

Other
 
12,579

 
6,884

Total receivables
 
595,977

 
290,890

Less: Allowance for doubtful accounts
 
(16,152
)
 
(13,295
)
Receivables, net
 
$
579,825

 
$
277,595

Long-term Debt (Tables)
Schedule of Debt [Table Text Block] 
Long-term debt consists of the following:
 
January 3, 2015
 
December 28, 2013
Revolving facility at variable interest rates (2.45% and 1.47% at January 3, 2015 and December 28, 2013, respectively) due December 5, 2018
$
93,400

 
$
—

Term loan at variable interest rates (1.72% and 1.67% at January 3, 2015 and December 28, 2013, respectively) due January 2, 2019
490,000

 
—

5.75% Senior Unsecured Notes (net of unamortized discount of $746 and $865 at January 3, 2015 and December 28, 2013, respectively) due May 1, 2020
299,254

 
299,135

4.50% Senior Unsecured Notes (net of unamortized discount of $72 and $80 at January 3, 2015 and December 28, 2013, respectively) due January 15, 2022
299,928

 
299,920

4.50% Senior Unsecured Notes (net of unamortized discount of $1,271 and $1,387 at January 3, 2015 and December 28, 2013) due December 1, 2023
448,729

 
448,613

Other
5,582

 
5,916

 
1,636,893

 
1,053,584

Less: Current portion of long-term debt
(582
)
 
(916
)
Long-term debt, excluding current portion
$
1,636,311

 
$
1,052,668


Debt Instrument Redemption [Table Text Block] 
The Company may redeem some or all of the Notes at any time or from time to time, at the redemption price described in the Indenture. In addition, in the event of a Change of Control Triggering Event (as defined in the Indenture for the Notes), the Company will be required to offer to repurchase the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest to the repurchase date. The Notes are currently fully and unconditionally guaranteed, jointly and severally, on an unsubordinated and unsecured basis by each of the subsidiary guarantors. The Company will be permitted to release guarantees without the consent of holders of the Notes under the circumstances described in the Indenture: (i) upon the release of the guarantee of the Company’s other debt that resulted in the affected subsidiary becoming a guarantor of this debt; (ii) upon the sale or other disposition of all or substantially all of the stock or assets of the subsidiary guarantor; or (iii) upon the Company’s exercise of its legal or covenant defeasance option.

Schedule of Maturities of Long-term Debt [Table Text Block] 
As of January 3, 2015, the aggregate future annual maturities of long-term debt instruments are as follows:
Fiscal
Year
 
Amount
2015
 
$
582

2016
 
—

2017
 
35,000

2018
 
163,400

2019
 
385,000

Thereafter
 
1,052,911

 
 
$
1,636,893

Fair Value Measurements (Tables)
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Table Text Block] 
The following table sets forth the Company’s financial liabilities that were measured at fair value on a recurring basis as of January 3, 2015 and December 28, 2013:
 
 
 
Fair Value Measurements at Reporting Date Using
 
 
 
Level 1
 
Level 2
 
Level 3
 
Fair Value
 
Quoted Prices in
Active Markets for
Identical Assets
 
Significant Other
Observable Inputs
 
Significant
Unobservable
Inputs
As of December 28, 2013:
 

 
 

 
 

 
 

Contingent consideration related to business acquisitions
$
9,475

 
$
—

 
$
—

 
$
9,475

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] 
The carrying value and fair value of the Company’s long-term debt, excluding the current portion, as of January 3, 2015 and December 28, 2013, respectively, are as follows:
 
January 3,
2015
 
December 28,
2013
Carrying Value
$
1,636,311

 
$
1,052,668

Fair Value
$
1,728,000

 
$
1,086,000

Property and Equipment (Tables)
Property, Plant and Equipment [Table Text Block]
 
Property and equipment consists of the following:
 
 
Original
Useful Lives
 
January 3,
2015
 
December 28,
2013
 
Land and land improvements
 
0 - 10 years
 
$
438,638

 
$
418,207

 
Buildings
 
30 - 40 years
 
460,187

 
445,820

 
Building and leasehold improvements
 
3 - 30 years
 
394,259

 
336,685

 
Furniture, fixtures and equipment
 
3 - 20 years
 
1,402,563

 
1,244,456

 
Vehicles
 
2 - 13 years
 
37,051

 
18,291

 
Construction in progress
 
 
 
71,691

 
75,985

 
 
 
 
 
2,804,389

 
2,539,444

 
Less - Accumulated depreciation
 
 
 
(1,372,359
)
 
(1,255,474
)
 
Property and equipment, net
 
 
 
$
1,432,030

 
$
1,283,970

 
Accrued Expenses (Tables)
Schedule of Accrued Liabilities [Table Text Block] 
Accrued expenses consist of the following:
 
 
January 3,
2015
 
December 28,
2013
 
Payroll and related benefits
 
$
116,198

 
$
101,576

 
Warranty reserves
 
47,972

 
39,512

 
Capital expenditures
 
29,780

 
20,714

 
Self-insurance reserves
 
58,899

 
45,504

 
Taxes payable
 
87,473

 
82,179

 
Other
 
180,351

 
139,140

 
Total accrued expenses
 
$
520,673

 
$
428,625

 
Schedule of Product Warranty Liability [Table Text Block] 
The following table presents changes in the Company’s warranty reserves:
 
 
January 3,
2015
 
December 28,
2013
 
December 29,
2012
Warranty reserves, beginning of period
 
$
39,512

 
$
38,425

 
$
38,847

Reserves acquired with GPI

 
4,490

 
—

 
—

Additions to warranty reserves
 
52,306

 
42,380

 
40,766

Reserves utilized
 
(48,336
)
 
(41,293
)
 
(41,188
)
Warranty reserves, end of period
 
$
47,972

 
$
39,512

 
$
38,425

Other Current and Long-term Liabilities (Tables)
Other Current Liabilities [Table Text Block] 
Other current liabilities consist of the following:
 
 
January 3,
2015
 
December 28,
2013
Deferred income taxes
 
$
89,173

 
$
135,754

Other
 
37,273

 
18,876

Total other current liabilities
 
$
126,446

 
$
154,630

Other Noncurrent Liabilities [Table Text Block] 
Other long-term liabilities consist of the following:
 
 
January 3,
2015
 
December 28,
2013
Deferred income taxes
 
$
360,903

 
$
91,957

Self-insurance reserves
 
78,134

 
52,971

Deferred rent
 
55,153

 
47,851

Unfavorable leases
 
45,259

 
—

Other
 
40,620

 
38,337

Total other long-term liabilities
 
$
580,069

 
$
231,116

Earnings per Share (Tables)
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]
The following table illustrates the computation of basic and diluted earnings per share for 2014, 2013 and 2012, respectively: 
 
 
2014
 
2013
 
2012
Numerator
 
 
 
 
 
 
Net income applicable to common shares
 
$
493,825

 
$
391,758

 
$
387,670

Participating securities’ share in earnings
 
(1,555
)
 
(895
)
 
(870
)
Net income applicable to common shares
 
$
492,270

 
$
390,863

 
$
386,800

Denominator
 
 
 
 
 
 
Basic weighted average common shares
 
72,932

 
72,930

 
73,091

Dilutive impact of share-based awards
 
482

 
484

 
971

Diluted weighted average common shares
 
73,414

 
73,414

 
74,062

 
 
 
 
 
 
 
Basic earnings per common share
 
 
 
 
 
 
Net income applicable to common stockholders
 
$
6.75

 
$
5.36

 
$
5.29

Diluted earnings per common share
 
 
 
 
 
 
Net income applicable to common stockholders
 
$
6.71

 
$
5.32

 
$
5.22

Income Taxes (Tables)
Provision for income taxes current and deferred [Table Text Block] 
Provision for income taxes for 2014, 2013 and 2012 consists of the following:
 
 
Current
 
Deferred
 
Total
2014
 
 
 
 
 
 
Federal
 
$
204,743

 
$
45,389

 
$
250,132

State
 
19,359

 
4,830

 
24,189

Foreign
 
14,999

 
(1,751
)
 
13,248

 
 
$
239,101

 
$
48,468

 
$
287,569

2013
 
 
 
 
 
 
Federal
 
$
202,784

 
$
(1,898
)
 
$
200,886

State
 
25,287

 
(339
)
 
24,948

Foreign
 
8,806

 
—

 
8,806

 
 
$
236,877

 
$
(2,237
)
 
$
234,640

2012
 
 
 
 
 
 
Federal
 
$
185,564

 
$
21,940

 
$
207,504

State
 
20,116

 
4,953

 
25,069

Foreign
 
3,831

 
—

 
3,831

 
 
$
209,511

 
$
26,893

 
$
236,404

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] 
The provision for income taxes differed from the amount computed by applying the federal statutory income tax
rate due to:
 
 
January 3, 2015
 
December 28, 2013
 
December 29, 2012
Income before provision for income taxes at statutory U.S. federal income tax rate (35%)
 
$
273,488

 
$
219,239

 
$
218,426

State income taxes, net of federal income tax benefit
 
15,723

 
16,216

 
16,295

Other, net
 
(1,642
)
 
(815
)
 
1,683

 
 
$
287,569

 
$
234,640

 
$
236,404

Net deferred income tax liabilities [Table Text Block] 
Deferred tax assets and liabilities are determined based on the differences between the financial statements and tax basis of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to reverse. Deferred income taxes reflect the net income tax effect of temporary differences between the basis of assets and liabilities for financial reporting purposes and for income tax reporting purposes. Net deferred income tax balances are comprised of the following:
 
 
January 3,
2015
 
December 28,
2013
Deferred income tax assets
 
$
151,997

 
$
101,979

Valuation allowance
 
(5,084
)
 
(1,557
)
Deferred income tax liabilities
 
(593,264
)
 
(321,778
)
Net deferred income tax liabilities
 
$
(446,351
)
 
$
(221,356
)
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] 
Temporary differences which give rise to significant deferred income tax assets (liabilities) are as follows:
 
 
January 3,
2015
 
December 28,
2013
Current deferred income tax assets (liabilities):
 
 
 
 
Inventory valuation differences
 
$
(156,703
)
 
$
(178,201
)
Accrued medical and workers compensation
 
14,250

 
9,370

Accrued expenses not currently deductible for tax
 
48,684

 
28,501

Other, net
 
5,119

 
5,612

Total current deferred income tax assets (liabilities)
 
$
(88,650
)
 
$
(134,718
)
 
 
 
 
 
Long-term deferred income tax assets (liabilities):
 
 
 
 
Property and equipment
 
$
(181,511
)
 
$
(143,577
)
Share-based compensation
 
13,721

 
10,733

Accrued medical and workers compensation
 
30,424

 
20,532

Net operating loss carryforwards
 
7,233

 
3,426

Straight-line rent
 
21,431

 
20,784

Intangible assets
 
(255,050
)
 
(10,961
)
Other, net
 
6,051

 
12,425

Total long-term deferred income tax assets (liabilities)
 
$
(357,701
)
 
$
(86,638
)
Unrecognized tax benefits [Table Text Block] 
The following table lists each category and summarizes the activity of the Company’s gross unrecognized tax benefits for the fiscal years ended January 3, 2015, December 28, 2013 and December 29, 2012:
 
 
January 3,
2015
 
December 28,
2013
 
December 29,
2012
Unrecognized tax benefits, beginning of period
 
$
18,458

 
$
16,708

 
$
24,711

Increases related to prior period tax positions
 
—

 
—

 
702

Decreases related to prior period tax positions
 
(4,841
)
 
(1,313
)
 
(9,629
)
Increases related to current period tax positions
 
4,329

 
3,678

 
3,985

Settlements
 
(2,345
)
 
—

 
(1,111
)
Expiration of statute of limitations
 
(1,568
)
 
(615
)
 
(1,950
)
Unrecognized tax benefits, end of period
 
$
14,033

 
$
18,458

 
$
16,708

Lease Commitments (Tables)
Schedule of Future Minimum Lease Payments for Operating Leases [Table Text Block] 
As of January 3, 2015, future minimum lease payments due under non-cancelable operating leases with lease terms extending through the year 2059 are as follows:
Fiscal Year
 
Amount
2015
 
$
460,655

2016
 
439,530

2017
 
402,581

2018
 
363,154

2019
 
317,982

Thereafter
 
1,262,623


 
$
3,246,525

Schedule of Rent Expense [Table Text Block] 
Net rent expense for 2014, 2013 and 2012 was as follows:
 
 
January 3, 2015
 
December 28, 2013
 
December 29, 2012
Minimum facility rentals
 
$
463,345

 
$
328,581

 
$
300,552

Contingency facility rentals
 
488

 
578

 
907

Equipment rentals
 
8,230

 
5,333

 
5,027

Vehicle rentals
 
53,300

 
29,100

 
18,401

 
 
525,363

 
363,592

 
324,887

Less: Sub-lease income
 
(9,966
)
 
(5,983
)
 
(4,600
)
 
 
$
515,397

 
$
357,609

 
$
320,287

Share-Based Compensation (Tables)
Share based compensation expense related to cash flow [Table Text Block] 
Total share-based compensation expense and cash received included in the Company’s consolidated statements of operations and consolidated statements of cash flows, including the related income tax benefits, for 2014, 2013 and 2012 are as follows:

 
 
2014
 
2013
 
2012
Share-based compensation expense
 
$
21,705

 
$
13,191

 
$
15,236

Deferred income tax benefit
 
8,013

 
4,991

 
5,774

 
 
 
 
 
 
 
Proceeds from the issuance of common stock, primarily exercise of stock options
 
6,578

 
3,611

 
8,495

Tax withholdings related to the exercise of stock appreciation rights
 
(7,102
)
 
(21,856
)
 
(26,677
)
Excess tax benefit from share-based compensation
 
10,487

 
16,320

 
23,099

Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] 
The fair value of each SAR was estimated on the date of grant using the Black-Scholes option-pricing model with the following weighted average assumptions:
Black-Scholes Option Valuation Assumptions
 
2014
 
2013
 
2012
 
 
 
 
 
 
 
Risk-free interest rate (1)
 
1.2
%
 
1.1
%
 
0.5
%
Expected dividend yield
 
0.2
%
 
0.3
%
 
0.3
%
Expected stock price volatility (2)
 
27.0
%
 
26.9
%
 
33.2
%
Expected life of awards (in months) (3)
 
49

 
49

 
49



(1) 
The risk-free interest rate is based on the U.S. Treasury constant maturity interest rate having term consistent with the expected life of the award.
(2) 
Expected volatility is determined using a blend of historical and implied volatility.
(3) 
The expected life of the Company's awards represents the estimated period of time until exercise and is based on historical experience of previously granted awards.

Time-Based Stock Appreciation Rights Award Activity [Table Text Block] 

The following table summarizes the time-vested SARs activity for 2014:
 
 
Number of Awards
 
Weighted-Average Exercise Price
 
Weighted-Average Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value
 
 
 
 
 
 
 
 
 
Outstanding at December 28, 2013
 
1,090

 
$
61.79

 
 
 
 
Granted
 
—

 
—

 
 
 
 
Exercised
 
(243
)
 
54.88

 
 
 
 
Forfeited
 
(21
)
 
67.71

 
 
 
 
Outstanding at January 3, 2015
 
826

 
$
63.68

 
3.54
 
$
78,332

 
 
 
 
 
 
 
 
 
Vested and expected to vest
 
823

 
$
63.64

 
3.54
 
$
78,107

 
 
 
 
 
 
 
 
 
Outstanding and exercisable
 
714

 
$
61.92

 
3.32
 
$
69,033

Time-Based Restricted Stock and Restricted Stock Units Activity [Table Text Block] 
The following table summarizes the RSU and restricted stock activity for the fiscal year ended January 3, 2015:
 
 
Number of Awards
 
Weighted-Average Grant Date Fair Value
 
 
 
 
 
Nonvested at December 28, 2013
 
210

 
$
91.44

Granted
 
190

 
139.43

Vested
 
(94
)
 
87.93

Forfeited
 
(23
)
 
103.75

Nonvested at January 3, 2015
 
283

 
$
123.89

Performance-Based Stock Appreciation Rights, Activity [Table Text Block] 

The following table summarizes the performance-based SARs activity for 2014:
 
Number of Awards
 
Weighted-Average Exercise Price
 
Weighted-Average Remaining Contractual Term (in years)
 
Aggregate Intrinsic Value
 
 
 
 
 
 
 
 
Outstanding at December 28, 2013
520

 
$
78.21

 
 
 
 
Granted
303

 
141.57

 
 
 
 
Change in units based on performance
(48
)
 
90.57

 
 
 
 
Exercised
(39
)
 
35.18

 
 
 
 
Forfeited
(107
)
 
68.97

 
 
 
 
Outstanding at January 3, 2015
629

 
$
112.01

 
5.47
 
$
29,285

 
 
 
 
 
 
 
 
Vested and expected to vest
533

 
$
108.17

 
4.97
 
$
26,864

 
 
 
 
 
 
 
 
Outstanding and exercisable
92

 
$
36.91

 
1.84
 
$
11,152

Performance-Based Restricted Stock, Activity [Table Text Block] 
The following table summarizes the performance-based RSUs activity for 2014:
 
 
Number of Awards
 
Weighted-Average Grant Date Fair Value
 
 
 
 
 
Nonvested at December 28, 2013
 
182

 
$
75.36

Granted
 
19

 
123.32

Change in units based on performance
 
6

 
104.87

Vested
 
(2
)
 
74.43

Forfeited
 
(10
)
 
76.09

Nonvested at January 3, 2015
 
195

 
$
81.98

Accumulated Other Comprehensive Income Loss (Tables)
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]
Accumulated other comprehensive income (loss), net of tax, for 2014, 2013 and 2012 consisted of the following:
 
 
Unrealized Gain
(Loss) on Hedging
Arrangements
 
Unrealized Gain (Loss)
on Postretirement
Plan
 
Currency
Translation
 
Accumulated
Other
Comprehensive
Income (Loss)
Balance, December 31, 2011
 
$
(254
)
 
$
3,058

 
$
—

 
$
2,804

Fiscal 2012 activity
 
254

 
(391
)
 
—

 
(137
)
Balance, December 29, 2012
 
$
—

 
$
2,667

 
$
—

 
$
2,667

Fiscal 2013 activity
 
—

 
1,016

 
—

 
1,016

Balance, December 28, 2013
 
$
—

 
$
3,683

 
$
—

 
$
3,683

Fiscal 2014 activity
 
—

 
(752
)
 
(15,268
)
 
(16,020
)
Balance, January 3, 2015
 
$
—

 
$
2,931

 
$
(15,268
)
 
$
(12,337
)
Segment and Related Information (Tables)
Revenue from External Customers by Products and Services [Table Text Block]
The following table summarizes financial information for each of the Company’s product groups for the years ended January 3, 2015, December 28, 2013 and December 29, 2012, respectively.
 
 
2014
 
2013
 
2012
Percentage of Sales, by Product Group
 
 
 
 
 
 
Parts and Batteries
 
69
%
 
67
%
 
65
%
Accessories
 
13
%
 
14
%
 
14
%
Chemicals
 
8
%
 
10
%
 
10
%
Oil
 
8
%
 
9
%
 
10
%
Other
 
2
%
 
—
%
 
1
%
Total
 
100
%
 
100
%
 
100
%
Condensed Consolidating Financial Statements (Tables)
Condensed Balance Sheet [Table Text Block] 
Condensed Consolidating Balance Sheets
As of January 3, 2015

 
Advance Auto Parts, Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Assets
 
 
 
 
 
 
 
 
 
Current assets:
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
9

 
$
65,345

 
$
39,326

 
$
(9
)
 
$
104,671

Receivables, net
—

 
549,151

 
30,674

 
—

 
579,825

Inventories, net
—

 
3,771,816

 
165,139

 
—

 
3,936,955

Other current assets
4,102

 
113,003

 
3,383

 
(899
)
 
119,589

Total current assets
4,111

 
4,499,315

 
238,522

 
(908
)
 
4,741,040

Property and equipment, net of accumulated depreciation
2

 
1,421,325

 
10,703

 
—

 
1,432,030

Assets held for sale
—

 
615

 
—

 
—

 
615

Goodwill
—

 
940,817

 
54,609

 
—

 
995,426

Intangible assets, net
—

 
689,745

 
58,380

 
—

 
748,125

Other assets, net
12,963

 
36,762

 
683

 
(5,286
)
 
45,122

Investment in subsidiaries
2,057,761

 
280,014

 
—

 
(2,337,775
)
 
—

Intercompany note receivable
1,047,911

 
—

 
—

 
(1,047,911
)
 
—

Due from intercompany, net
—

 
—

 
211,908

 
(211,908
)
 
—

 
$
3,122,748

 
$
7,868,593

 
$
574,805

 
$
(3,603,788
)
 
$
7,962,358

Liabilities and Stockholders' Equity
 
 
 
 
 
 
 
 
 
Current liabilities:
 
 
 
 
 
 
 
 
 
Current portion of long-term debt
$
—

 
$
582

 
$
—

 
$
—

 
$
582

Accounts payable
—

 
2,845,043

 
250,322

 
—

 
3,095,365

Accrued expenses
4,884

 
498,505

 
17,284

 
—

 
520,673

Other current liabilities
—

 
115,497

 
11,857

 
(908
)
 
126,446

Total current liabilities
4,884

 
3,459,627

 
279,463

 
(908
)
 
3,743,066

Long-term debt
1,047,911

 
588,400

 
—

 
—

 
1,636,311

Other long-term liabilities
—

 
570,027

 
15,328

 
(5,286
)
 
580,069

Intercompany note payable
—

 
1,047,911

 
—

 
(1,047,911
)
 
—

Due to intercompany, net
67,041

 
144,867

 
—

 
(211,908
)
 
—

Commitments and contingencies

 

 

 

 

 
 
 
 
 
 
 
 
 
 
Stockholders' equity
2,002,912

 
2,057,761

 
280,014

 
(2,337,775
)
 
2,002,912

 
$
3,122,748

 
$
7,868,593

 
$
574,805

 
$
(3,603,788
)
 
$
7,962,358

Condensed Income Statement [Table Text Block] 
Condensed Consolidating Statements of Operations
For Fiscal 2014
 
Advance Auto Parts, Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net sales
$
—

 
$
9,530,953

 
$
527,595

 
$
(214,687
)
 
$
9,843,861

Cost of sales, including purchasing and warehousing costs
—

 
5,231,421

 
373,514

 
(214,687
)
 
5,390,248

Gross profit
—

 
4,299,532

 
154,081

 
—

 
4,453,613

Selling, general and administrative expenses
14,504

 
3,541,370

 
102,370

 
(56,341
)
 
3,601,903

Operating (loss) income
(14,504
)
 
758,162

 
51,711

 
56,341

 
851,710

Other, net:
 
 
 
 
 
 
 
 
 
Interest expense
(52,946
)
 
(20,334
)
 
(128
)
 
—

 
(73,408
)
Other income (expense), net
67,470

 
(9,140
)
 
1,103

 
(56,341
)
 
3,092

Total other, net
14,524

 
(29,474
)
 
975

 
(56,341
)
 
(70,316
)
Income before provision for income taxes
20

 
728,688

 
52,686

 
—

 
781,394

Provision for income taxes
296

 
277,769

 
9,504

 
—

 
287,569

(Loss) income before equity in earnings of subsidiaries
(276
)
 
450,919

 
43,182

 
—

 
493,825

Equity in earnings of subsidiaries
494,101

 
43,182

 
—

 
(537,283
)
 
—

Net income
$
493,825

 
$
494,101

 
$
43,182

 
$
(537,283
)
 
$
493,825




Condensed Statement of Comprehensive Income [Table Text Block] 
Condensed Consolidating Statements of Comprehensive Income
For Fiscal 2014

 
Advance Auto Parts, Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net income
$
493,825

 
$
494,101

 
$
43,182

 
$
(537,283
)
 
$
493,825

Other comprehensive loss:
 
 
 
 
 
 
 
 
 
Changes in net unrecognized other postretirement benefit costs
—

 
(752
)
 
—

 
—

 
(752
)
Currency translation
—

 
—

 
(15,268
)
 
—

 
(15,268
)
Equity in other comprehensive loss of subsidiaries
(16,020
)
 
(15,268
)
 
—

 
31,288

 
—

Other comprehensive loss
(16,020
)
 
(16,020
)
 
(15,268
)
 
31,288

 
(16,020
)
Comprehensive income
$
477,805

 
$
478,081

 
$
27,914

 
$
(505,995
)
 
$
477,805





Condensed Cash Flow Statement [Table Text Block] 
Condensed Consolidating Statements of Cash Flows
For Fiscal 2014

 
Advance Auto Parts, Inc.
 
Guarantor Subsidiaries
 
Non-Guarantor Subsidiaries
 
Eliminations
 
Consolidated
Net cash provided by operating activities
$
—

 
$
666,566

 
$
42,425

 
$
—

 
$
708,991

Cash flows from investing activities:
 
 
 
 
 
 
 
 
 
Purchases of property and equipment
—

 
(224,894
)
 
(3,552
)
 
—

 
(228,446
)
Business acquisitions, net of cash acquired
—

 
(2,059,987
)
 
(796
)
 
—

 
(2,060,783
)
Proceeds from sales of property and equipment
—

 
974

 
18

 
—

 
992

Net cash used in investing activities
—

 
(2,283,907
)
 
(4,330
)
 
—

 
(2,288,237
)
Cash flows from financing activities:
 
 
 
 
 
 
 
 
 
Increase in bank overdrafts
—

 
16,228

 
—

 
(9
)
 
16,219

Borrowings under credit facilities
—

 
2,238,200

 
—

 
—

 
2,238,200

Payments on credit facilities
—

 
(1,654,800
)
 
—

 
—

 
(1,654,800
)
Dividends paid
—

 
(17,580
)
 
—

 
—

 
(17,580
)
Proceeds from the issuance of common stock, primarily exercise of stock options
—

 
6,578

 
—

 
—

 
6,578

Tax withholdings related to the exercise of stock appreciation rights
—

 
(7,102
)
 
—

 
—

 
(7,102
)
Excess tax benefit from share-based compensation
—

 
10,487

 
—

 
—

 
10,487

Repurchase of common stock
—

 
(5,154
)
 
—

 
—

 
(5,154
)
Contingent consideration related to business acquisitions
—

 
(10,047
)
 
—

 
—

 
(10,047
)
Other
—

 
(890
)
 
—

 
—

 
(890
)
Net cash provided by financing activities
—

 
575,920

 
—

 
(9
)
 
575,911

Effect of exchange rate changes on cash
—

 
—

 
(4,465
)
 
—

 
(4,465
)
Net (decrease) increase in cash and cash equivalents
—

 
(1,041,421
)
 
33,630

 
(9
)
 
(1,007,800
)
Cash and cash equivalents, beginning of period
9

 
1,106,766

 
5,696

 
—

 
1,112,471

Cash and cash equivalents, end of period
$
9

 
$
65,345

 
$
39,326

 
$
(9
)
 
$
104,671

Quarterly Financial Data (Tables)
Schedule of Quarterly Financial Information [Table Text Block]

The following table summarizes quarterly financial data for Fiscal 2014 and 2013:
2014
 
First
 
Second
 
Third
 
Fourth
 
 
(16 weeks)
 
(12 weeks)
 
(12 weeks)
 
(13 weeks)
Net sales
 
$
2,969,499

 
$
2,347,697

 
$
2,289,456

 
$
2,237,209

Gross profit
 
1,353,122

 
1,062,108

 
1,034,442

 
1,003,941

Net income
 
147,726

 
139,488

 
122,177

 
84,434

 
 
 
 
 
 
 
 
 
Basic earnings per share
 
2.02

 
1.91

 
1.67

 
1.15

Diluted earnings per share
 
2.01

 
1.89

 
1.66

 
1.15

 
 
 
 
 
 
 
 
 
2013
 
First
 
Second
 
Third
 
Fourth
 
 
(16 weeks)
 
(12 weeks)
 
(12 weeks)
 
(12 weeks)
Net sales
 
$
2,015,304

 
$
1,549,553

 
$
1,520,144

 
$
1,408,813

Gross profit
 
1,008,206

 
779,223

 
762,940

 
701,777

Net income
 
121,790

 
116,871

 
103,830

 
49,267

 
 
 
 
 
 
 
 
 
Basic earnings per share
 
1.66

 
1.60

 
1.42

 
0.68

Diluted earnings per share
 
1.65

 
1.59

 
1.42

 
0.67


Note: Quarterly and year-to-date computations of per share amounts are made independently. Therefore, the sum of per share amounts for the quarters may not be equal to the per share amount for the year.
Valuation and Qualifying Accounts (Tables)
Allowance for doubtful accounts receivable [Table Text Block]
Allowance for doubtful accounts receivable:
 
Balance at
Beginning
of Period
 
Charges to
Expenses
 
Deductions
 
 
Other
 
Balance at
End of
Period
December 29, 2012
 
$
4,056

 
$
4,127

 
$
(2,264
)
(1) 
 
$
—

 
$
5,919

December 28, 2013
 
5,919

 
11,955

 
(4,995
)
(1) 
 
416

(2) 
13,295

January 3, 2015
 
13,295

 
17,182

 
(14,325
)
(1) 
 
—

 
16,152


(1) 
Accounts written off during the period. These amounts did not impact the Company’s statement of operations for any year presented.
Organization and Description of Business (Details)
Jan. 3, 2015
Stores [Member]
 
Organization and Description of Business [Line Items]
 
Number of Stores
5,261 
Branches [Member]
 
Organization and Description of Business [Line Items]
 
Number of Stores
111 
Store locations with delivery service [Member]
 
Organization and Description of Business [Line Items]
 
Number of Stores
4,981 
Independently-owned Carquest store locations [Member]
 
Organization and Description of Business [Line Items]
 
Number of Stores
1,325 
Summary of Significant Accounting Policies (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Accounting Policies [Abstract]
 
 
 
Credit and Debit Card Receivables, at Carrying Value
$ 28,843 
$ 28,828 
 
Bank overdrafts
22,015 
5,796 
 
Deferred vendor incentives included in inventory
179,785 
111,304 
 
Advertising Expense
96,463 
69,116 
83,871 
Cooperative Advertising Amount
21,814 
18,622 
11,445 
Self-insurance reserves [Line Items]
 
 
 
Self-insurance reserves, beginning of period
98,475 
94,548 
98,944 
Self-insurance reserves, end of period
137,033 
98,475 
94,548 
Impairment of Long-Lived Assets to be Disposed of
11,819 
 
 
Deferred Rent Credit
60,275 
50,638 
 
Additions to self-insurance reserves [Member]
 
 
 
Self-insurance reserves [Line Items]
 
 
 
Increase (Decrease) in self-insurance reserves
159,752 
120,782 
105,670 
Acquired reserves [Member]
 
 
 
Self-insurance reserves [Line Items]
 
 
 
Increase (Decrease) in self-insurance reserves
41,673 
4,195 
0 
Reserves utilized [Member]
 
 
 
Self-insurance reserves [Line Items]
 
 
 
Increase (Decrease) in self-insurance reserves
$ (162,867)
$ (121,050)
$ (110,066)
Inventories, net (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Inventory [Line Items]
 
 
 
Percentage of LIFO Inventory
88.00% 
95.00% 
 
Inventory, LIFO Reserve, Effect on Income, Net
$ (8,930)
$ 5,572 
$ 24,087 
Purchasing and Warehousing costs included in inventory
321,856 
161,519 
 
Inventories at FIFO, net
3,814,123 
2,424,795 
 
Adjustments to state inventories at LIFO
122,832 
131,762 
 
Inventories at LIFO, net
3,936,955 
2,556,557 
 
Inventory Valuation Reserve [Member]
 
 
 
Movement in Valuation Allowances and Reserves [Roll Forward]
 
 
 
Inventory reserves, beginning of period
37,523 
31,418 
30,786 
Additions to inventory reserves
92,773 
65,466 
72,852 
Reserves utilized
(80,857)
(59,361)
(72,220)
Inventory reserves, end of period
$ 49,439 
$ 37,523 
$ 31,418 
Acquisitions (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended 0 Months Ended 12 Months Ended 12 Months Ended
Jan. 3, 2015
Oct. 4, 2014
Jul. 12, 2014
Dec. 28, 2013
Oct. 5, 2013
Jul. 13, 2013
Apr. 19, 2014
Apr. 20, 2013
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Jan. 2, 2014
Carquest stores acquired by AAP in acquisition [Member] [Member]
Jan. 2, 2014
GPI Worldpac [Member]
Jan. 2, 2014
GPI [Member]
Jan. 3, 2015
GPI [Member]
Dec. 28, 2013
GPI [Member]
Jan. 2, 2014
Carquest indepently owned locations [Member]
Dec. 28, 2013
B.W.P. Distributors, Inc. stores operated prior to acquisition [Member]
Dec. 31, 2012
BWP Distribution Centers AAP will transfer the rights to distribute [Member]
Dec. 31, 2012
BWP stores AAP will transfer the rights to distribute [Member]
Dec. 31, 2012
BWP stores acquired by AAP in acquisition [Member]
Dec. 31, 2012
BWP Distribution Centers acquired by AAP in acquisition [Member]
Dec. 28, 2013
BWP [Member]
Jan. 3, 2015
Following GPI acquisition [Member]
Business Acquisition [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Number of Stores
 
 
 
 
 
 
 
 
 
 
 
1,233 
103 
 
 
 
1,400 
216 
1 
92 
124 
2 
 
9 
Number of States in which Entity Operates
 
 
 
 
 
 
 
 
 
 
 
 
 
45 
 
 
 
 
 
 
 
 
 
 
Total consideration
 
 
 
 
 
 
 
 
 
 
 
 
 
$ 2,080,804 
 
 
 
 
 
 
 
 
$ 187,109 
$ 5,155 
Cash paid to shareholders in acquisition
 
 
 
 
 
 
 
 
 
 
 
 
 
1,307,991 
 
 
 
 
 
 
 
 
 
 
Repayment of GPI debt
 
 
 
 
 
 
 
 
 
 
 
 
 
694,301 
 
 
 
 
 
 
 
 
 
 
Amount paid for make-whole fees and transaction related fees
 
 
 
 
 
 
 
 
 
 
 
 
 
78,512 
 
 
 
 
 
 
 
 
 
 
Term Loan Payable
 
 
 
 
 
 
 
 
 
 
 
 
 
700,000 
 
 
 
 
 
 
 
 
 
 
Revolving Credit Facility, amount outstanding
 
 
 
 
 
 
 
 
 
 
 
 
 
306,046 
 
 
 
 
 
 
 
 
 
 
Business Combination, Acquisition Related Costs
 
 
 
 
 
 
 
 
 
 
 
 
 
 
0 
26,970 
 
 
 
 
 
 
 
 
Net sales
2,237,209 
2,289,456 
2,347,697 
1,408,813 
1,520,144 
1,549,553 
2,969,499 
2,015,304 
9,843,861 
6,493,814 
6,205,003 
 
 
 
3,040,493 
 
 
 
 
 
 
 
 
 
Net income
84,434 
122,177 
139,488 
49,267 
103,830 
116,871 
147,726 
121,790 
493,825 
391,758 
387,670 
 
 
 
58,535 
 
 
 
 
 
 
 
 
 
Escrow Deposit
 
 
 
 
 
 
 
 
 
 
 
 
 
200,881 
 
 
 
 
 
 
 
 
 
 
Business Combination, Indemnification Assets, Amount as of Acquisition Date
 
 
 
 
 
 
 
 
 
 
 
 
 
4,283 
 
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
 
 
 
 
 
 
 
 
 
 
 
 
 
25,176 
 
 
 
 
 
 
 
 
 
 
Receivables
 
 
 
 
 
 
 
 
 
 
 
 
 
255,997 
 
 
 
 
 
 
 
 
 
 
Inventory
 
 
 
 
 
 
 
 
 
 
 
 
 
1,159,886 
 
 
 
 
 
 
 
 
 
 
Other current assets
 
 
 
 
 
 
 
 
 
 
 
 
 
118,871 
 
 
 
 
 
 
 
 
 
 
Property, plant and equipment
 
 
 
 
 
 
 
 
 
 
 
 
 
162,545 
 
 
 
 
 
 
 
 
 
 
Intangible assets
 
 
 
 
 
 
 
 
 
 
 
 
 
756,571 
 
 
 
 
 
 
 
 
 
 
Other assets
 
 
 
 
 
 
 
 
 
 
 
 
 
1,741 
 
 
 
 
 
 
 
 
 
 
Accounts payable
 
 
 
 
 
 
 
 
 
 
 
 
 
(704,006)
 
 
 
 
 
 
 
 
 
 
Accrued and other current liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
(136,784)
 
 
 
 
 
 
 
 
 
 
Long-term liabilities
 
 
 
 
 
 
 
 
 
 
 
 
 
(356,584)
 
 
 
 
 
 
 
 
 
 
Total identifiable net assets
 
 
 
 
 
 
 
 
 
 
 
 
 
1,283,413 
 
 
 
 
 
 
 
 
 
 
Goodwill
995,426 
 
 
199,835 
 
 
 
 
995,426 
199,835 
76,389 
 
 
797,391 
 
 
 
 
 
 
 
 
 
 
Total acquired net assets
 
 
 
 
 
 
 
 
 
 
 
 
 
2,080,804 
 
 
 
 
 
 
 
 
 
 
Off-market Lease, Favorable
 
 
 
 
 
 
 
 
 
 
 
 
 
56,465 
 
 
 
 
 
 
 
 
 
 
Off-market Lease, Unfavorable
45,259 
 
 
0 
 
 
 
 
45,259 
0 
 
 
 
48,604 
 
 
 
 
 
 
 
 
 
 
Business Combination, Acquired Receivables, Fair Value
 
 
 
 
 
 
 
 
 
 
 
 
 
255,997 
 
 
 
 
 
 
 
 
 
 
Business Combination, Acquired Receivables, Gross Contractual Amount
 
 
 
 
 
 
 
 
 
 
 
 
 
269,006 
 
 
 
 
 
 
 
 
 
 
Business Combination, Acquired Receivables, Estimated Uncollectible
 
 
 
 
 
 
 
 
 
 
 
 
 
13,009 
 
 
 
 
 
 
 
 
 
 
Pro forma net sales
 
 
 
 
 
 
 
 
 
9,456,405 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Pro forma net income
 
 
 
 
 
 
 
 
 
428,562 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Pro Forma Earnings Per Share, Basic
 
 
 
 
 
 
 
 
 
$ 5.88 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Acquisition, Pro Forma Earnings Per Share, Diluted
 
 
 
 
 
 
 
 
 
$ 5.84 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, Elimination of deferred gain from sale leaseback transaction
 
 
 
 
 
 
 
 
 
6,385 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business Combination, elimination of transaction fees
 
 
 
 
 
 
 
 
 
26,970 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Business acquisition, expected proceeds from sale of certain assets
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
16,798 
 
Goodwill, Acquired During Period
 
 
 
 
 
 
 
 
$ 798,043 
$ 123,446 
 
 
 
 
$ 797,391 
 
 
 
 
 
 
 
$ 123,446 
$ 652 
Exit Activities and Impairment (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Restructuring Cost and Reserve [Line Items]
 
Restructuring Reserve, beginning of period
$ 11,212 
Reserves acquired with GPI
3,455 
Reserves established
26,229 
Change in estimates
(254)
Cash payments
(13,752)
Restructuring Reserve, end of period
26,890 
Office Consolidation [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring and Related Cost, Expected Cost
28,800 
BWP stores consolidated [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Number of Stores
34 
BWP stores converted [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Number of Stores
19 
Number of Florida AI stores prior to consolidation plan [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Number of Stores
40 
AI stores remaining to convert to AAP stores in Florida [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Number of Stores
7 
Carquest consolidations completed [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Number of Stores
98 
Carquest conversions completed [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Number of Stores
10 
AI stores approved to consolidate [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Number of Stores
33 
Closed Store Lease Obligations [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring and Related Cost, Expected Cost
5,500 
Restructuring Reserve, beginning of period
11,212 
Reserves acquired with GPI
3,455 
Reserves established
11,138 
Change in estimates
1,053 
Cash payments
(7,588)
Restructuring Reserve, end of period
19,270 
Closed Store Lease Obligations [Member] |
Carquest consolidations completed [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring and Related Cost, Incurred Cost
5,812 
Severance [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Reserve, beginning of period
0 
Reserves acquired with GPI
0 
Reserves established
8,038 
Change in estimates
(1,307)
Cash payments
(927)
Restructuring Reserve, end of period
5,804 
Severance [Member] |
Office Consolidation [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring and Related Cost, Expected Cost
11,200 
Restructuring and Related Cost, Incurred Cost
6,731 
Relocation and Other Exit Costs [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring Reserve, beginning of period
0 
Reserves acquired with GPI
0 
Reserves established
7,053 
Change in estimates
0 
Cash payments
(5,237)
Restructuring Reserve, end of period
1,816 
Relocation and Other Exit Costs [Member] |
Office Consolidation [Member]
 
Restructuring Cost and Reserve [Line Items]
 
Restructuring and Related Cost, Expected Cost
17,600 
Restructuring and Related Cost, Incurred Cost
$ 7,053 
Goodwill and Intangible Assets (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Jan. 3, 2015
GPI [Member]
Jan. 2, 2014
GPI [Member]
Jan. 3, 2015
Following GPI acquisition [Member]
Dec. 28, 2013
BWP [Member]
Goodwill [Line Items]
 
 
 
 
 
 
Number of Stores
 
 
 
 
9 
 
Goodwill, Acquisitions
$ 798,043 
$ 123,446 
$ 797,391 
 
$ 652 
$ 123,446 
Goodwill [Roll Forward]
 
 
 
 
 
 
Goodwill, beginning of period
199,835 
76,389 
 
797,391 
 
 
Goodwill, Acquisitions
798,043 
123,446 
797,391 
 
652 
123,446 
Goodwill, changes in foreign currency exchange rates
(2,452)
0 
 
 
 
 
Goodwill, end of period
995,426 
199,835 
 
797,391 
 
 
2015
52,115 
 
 
 
 
 
2016
48,312 
 
 
 
 
 
2017
45,959 
 
 
 
 
 
2018
42,948 
 
 
 
 
 
2019
32,187 
 
 
 
 
 
Thereafter
$ 187,221 
 
 
 
 
 
Goodwill and Intangible Asset Rollforward (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross Carrying Amount
$ 484,455 
$ 48,536 
 
Accumulated Amortization
(75,713)
(19,214)
 
Net
408,742 
29,322 
 
Indefinite-Lived Trademarks
339,383 
20,550 
 
Intangible Assets, gross (excluding goodwill)
823,838 
69,086 
 
Additions
757,453 
29,001 
 
Indefinite-lived Intangible Assets, Written off Related to Sale of Business Unit
 
2,244 
 
Amortization Expense
56,499 
7,974 
3,635 
Intangible Assets, Net (Excluding Goodwill)
748,125 
49,872 
 
Customer Relationships [Member]
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross Carrying Amount
362,483 
33,601 
 
Accumulated Amortization
(40,609)
(10,309)
 
Net
321,874 
23,292 
 
Additions
330,293 
23,801 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
12 years 
12 years 
 
Acquired Technology
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross Carrying Amount
8,850 
8,850 
 
Accumulated Amortization
(8,569)
(6,381)
 
Net
281 
2,469 
 
Favorable Leases [Member]
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross Carrying Amount
56,342 
0 
 
Accumulated Amortization
(11,939)
0 
 
Net
44,403 
0 
 
Additions
56,465 
 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
4 years 6 months 
 
 
Non-Compete and Other
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Gross Carrying Amount
56,780 
6,085 
 
Accumulated Amortization
(14,596)
(2,524)
 
Net
42,184 
3,561 
 
Additions
50,695 
5,200 
 
Acquired Finite-lived Intangible Assets, Weighted Average Useful Life
5 years 
3 years 4 months 24 days 
 
Brands, Trademark and Tradenames [Member]
 
 
 
Acquired Finite-Lived Intangible Assets [Line Items]
 
 
 
Accumulated Amortization
0 
0 
 
Additions
$ 320,000 
 
 
Receivables, net (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 3, 2015
Dec. 28, 2013
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total receivables
$ 595,977 
$ 290,890 
Less: Allowance for doubtful accounts
(16,152)
(13,295)
Receivables, net
579,825 
277,595 
Trade Accounts Receivable [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total receivables
360,922 
145,670 
Accounts Receivable, Vendor [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total receivables
222,476 
138,336 
Accounts Receivable, Other [Member]
 
 
Accounts, Notes, Loans and Financing Receivable [Line Items]
 
 
Total receivables
$ 12,579 
$ 6,884 
Long-term Debt (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended 12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Jan. 3, 2015
5.75% senior unsecured notes (2020 Notes) [Member]
Dec. 28, 2013
5.75% senior unsecured notes (2020 Notes) [Member]
Apr. 26, 2010
5.75% senior unsecured notes (2020 Notes) [Member]
Jan. 3, 2015
4.50% senior unsecured notes (2022 Notes) [Member]
Dec. 28, 2013
4.50% senior unsecured notes (2022 Notes) [Member]
Jan. 11, 2012
4.50% senior unsecured notes (2022 Notes) [Member]
Dec. 28, 2013
4.50% senior unsecured notes (2023 Notes) [Member]
Jan. 3, 2015
4.50% senior unsecured notes (2023 Notes) [Member]
Dec. 3, 2013
4.50% senior unsecured notes (2023 Notes) [Member]
Jan. 3, 2015
Revolving Credit Facility [Member]
Dec. 28, 2013
Revolving Credit Facility [Member]
Jan. 3, 2015
Revolving Credit Facility [Member]
London Interbank Offered Rate (LIBOR) [Member]
Jan. 3, 2015
Revolving Credit Facility [Member]
Base Rate [Member]
Jan. 3, 2015
Revolving Credit Facility [Member]
letters of credit sublimit [Member]
Jan. 3, 2015
Revolving Credit Facility [Member]
swingline sublimit [Member]
Jan. 3, 2015
Term Loan [Member]
Dec. 28, 2013
Term Loan [Member]
Jan. 3, 2015
Term Loan [Member]
London Interbank Offered Rate (LIBOR) [Member]
Jan. 3, 2015
Term Loan [Member]
Base Rate [Member]
Jan. 3, 2015
Senior Notes [Member]
5.75% senior unsecured notes (2020 Notes) [Member]
Dec. 28, 2013
Senior Notes [Member]
5.75% senior unsecured notes (2020 Notes) [Member]
Jan. 3, 2015
Senior Notes [Member]
4.50% senior unsecured notes (2022 Notes) [Member]
Dec. 28, 2013
Senior Notes [Member]
4.50% senior unsecured notes (2022 Notes) [Member]
Jan. 3, 2015
Senior Notes [Member]
4.50% senior unsecured notes (2023 Notes) [Member]
Dec. 28, 2013
Senior Notes [Member]
4.50% senior unsecured notes (2023 Notes) [Member]
Jan. 3, 2015
Notes Payable, Other Payables [Member]
Dec. 28, 2013
Notes Payable, Other Payables [Member]
Debt Instrument [Line Items]
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Gross
$ 1,636,893 
$ 1,053,584 
 
 
 
 
 
 
 
 
 
$ 93,400 
$ 0 
 
 
 
 
$ 490,000 
$ 0 
 
 
$ 299,254 
$ 299,135 
$ 299,928 
$ 299,920 
$ 448,729 
$ 448,613 
$ 5,582 
$ 5,916 
Long-term Debt, Current Maturities
(582)
(916)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Long-term Debt, Excluding Current Maturities
1,636,311 
1,052,668 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Face Amount
 
 
 
 
300,000 
 
 
300,000 
 
 
450,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Effective Percentage
 
 
 
 
 
 
 
 
 
 
 
2.45% 
1.47% 
 
 
 
 
1.72% 
1.67% 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Unamortized Discount
 
 
746 
865 
 
72 
80 
 
1,387 
1,271 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Maximum Borrowing Capacity
 
 
 
 
 
 
 
 
 
 
 
1,000,000 
 
 
 
300,000 
50,000 
700,000 
 
 
 
 
 
 
 
 
 
 
 
line of credit facility increase increment limit
 
 
 
 
 
 
 
 
 
 
 
250,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total line of credit commitment allowed
 
 
 
 
 
 
 
 
 
 
 
1,250,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Letters of Credit Outstanding, Amount
124,334 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Line of Credit Facility, Remaining Borrowing Capacity
782,266 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Basis Spread on Variable Rate
 
 
 
 
 
 
 
 
 
 
 
 
 
1.30% 
0.30% 
 
 
 
 
1.50% 
0.50% 
 
 
 
 
 
 
 
 
Line of Credit Facility, Commitment Fee Percentage
0.20% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt Instrument, Interest Rate, Stated Percentage
 
 
 
 
5.75% 
 
 
4.50% 
 
 
4.50% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Debt issuance, percentage of principal
 
 
 
 
99.587% 
 
 
99.968% 
 
 
99.69% 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net proceeds from note offering after deducting fees
 
 
 
 
 
 
 
 
445,200 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations, Maximum Exposure, Undiscounted
33,606 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Guarantor Obligations, Collateral Held
71,997 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indenture provisions for events of default
Text Block 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2015
582 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2016
0 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017
35,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2018
163,400 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2019
385,000 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Thereafter
$ 1,052,911 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Indenture provisions for events of default 
The Indenture contains customary provisions for events of default including for: (i) failure to pay principal or interest when due and payable; (ii) failure to comply with covenants or agreements in the Indenture or the Notes and failure to cure or obtain a waiver of such default upon notice; (iii) a default under any debt for money borrowed by the Company or any of its subsidiaries that results in acceleration of the maturity of such debt, or failure to pay any such debt within any applicable grace period after final stated maturity, in an aggregate amount greater than $25,000 without such debt having been discharged or acceleration having been rescinded or annulled within 10 days after receipt by the Company of notice of the default by the Trustee or holders of not less than 25% in aggregate principal amount of the Notes then outstanding; and (iv) events of bankruptcy, insolvency or reorganization affecting the Company and certain of its subsidiaries. In the case of an event of default, the principal amount of the Notes plus accrued and unpaid interest may be accelerated. The Indenture also contains covenants limiting the ability of the Company and its subsidiaries to incur debt secured by liens and to enter into sale and lease-back transactions.
Fair Value Measurements Fair Value Table (Details) (USD $)
In Thousands, unless otherwise specified
Dec. 28, 2013
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Contingent consideration related to business acquisitions
$ 9,475 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 1 [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Contingent consideration related to business acquisitions
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 2 [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Contingent consideration related to business acquisitions
0 
Fair Value, Measurements, Recurring [Member] |
Fair Value, Inputs, Level 3 [Member]
 
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
 
Contingent consideration related to business acquisitions
$ 9,475 
Fair Value Measurements (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 3, 2015
Dec. 28, 2013
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Carrying Value
$ 1,636,311 
$ 1,052,668 
Fair Value, Inputs, Level 2 [Member]
 
 
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
 
 
Fair Value
$ 1,728,000 
$ 1,086,000 
Property and Equipment (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Property, Plant and Equipment [Line Items]
 
 
 
Property and Equipment, Gross
$ 2,804,389 
$ 2,539,444 
 
Accumulated Depreciation
(1,372,359)
(1,255,474)
 
Property and Equipment, Net
1,432,030 
1,283,970 
 
Depreciation
235,040 
199,821 
185,909 
Capitalized software development costs
11,436 
11,534 
10,026 
Software Development [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Estimated Useful Lives
three to five years 
 
 
Land and Land Improvements [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Estimated Useful Lives
0 - 10 years 
 
 
Property and Equipment, Gross
438,638 
418,207 
 
Building [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Estimated Useful Lives
30 - 40 years 
 
 
Property and Equipment, Gross
460,187 
445,820 
 
Building and Leasehold Improvements [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Estimated Useful Lives
3 - 30 years 
 
 
Property and Equipment, Gross
394,259 
336,685 
 
Furniture, Fixtures and Equipment [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Estimated Useful Lives
3 - 20 years 
 
 
Property and Equipment, Gross
1,402,563 
1,244,456 
 
Vehicles [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property, Plant and Equipment, Estimated Useful Lives
2 - 13 years 
 
 
Property and Equipment, Gross
37,051 
18,291 
 
Construction in Progress [Member]
 
 
 
Property, Plant and Equipment [Line Items]
 
 
 
Property and Equipment, Gross
$ 71,691 
$ 75,985 
 
Accrued Expenses (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Payables and Accruals [Abstract]
 
 
 
Payroll and related benefits
$ 116,198 
$ 101,576 
 
Warranty reserves
47,972 
39,512 
38,425 
Capital expenditures
29,780 
20,714 
 
Self-insurance reserves
58,899 
45,504 
 
Taxes payable
87,473 
82,179 
 
Other
180,351 
139,140 
 
Total accrued expenses
520,673 
428,625 
 
Movement in Standard Product Warranty Accrual [Roll Forward]
 
 
 
Warranty reserves, beginning of period
39,512 
38,425 
38,847 
Reserves acquired with GPI
4,490 
0 
0 
Additions to warranty reserves
52,306 
42,380 
40,766 
Reserves utilized
(48,336)
(41,293)
(41,188)
Warranty reserves, end of period
$ 47,972 
$ 39,512 
$ 38,425 
Other Current and Long-term Liabilities (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 3, 2015
Dec. 28, 2013
Other Liabilities Disclosure [Abstract]
 
 
Deferred income taxes, current
$ 89,173 
$ 135,754 
Other
37,273 
18,876 
Total other current liabilities
126,446 
154,630 
Deferred income taxes, long-term
360,903 
91,957 
Self-insurance reserves
78,134 
52,971 
Deferred rent
55,153 
47,851 
Unfavorable leases
45,259 
0 
Other
40,620 
38,337 
Total other long-term liabilities
$ 580,069 
$ 231,116 
Stock Repurchases (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Class of Stock [Line Items]
 
 
 
Treasury Stock, Value, Acquired, Cost Method
$ 5,154 
$ 80,795 
$ 27,095 
Net Settlement of Shares Issued as a Result of the Vesting of Restricted Stock [Member]
 
 
 
Class of Stock [Line Items]
 
 
 
Treasury Stock, Shares, Acquired
35 
38 
 
Treasury Stock, Value, Acquired, Cost Method
5,154 
3,502 
 
Treasury Stock Acquired, Average Cost Per Share
$ 148.85 
$ 91.78 
 
Stock Repurchase Plan (current year shares) [Member]
 
 
 
Class of Stock [Line Items]
 
 
 
Stock Repurchase Program, Authorized Amount
500,000 
 
 
Treasury Stock, Shares, Acquired
 
998 
 
Treasury Stock, Value, Acquired, Cost Method
 
77,293 
 
Treasury Stock Acquired, Average Cost Per Share
 
$ 77.47 
 
Stock Repurchase Program, Remaining Authorized Repurchase Amount
$ 415,092 
 
 
Earnings per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended
Jan. 3, 2015
Oct. 4, 2014
Jul. 12, 2014
Dec. 28, 2013
Oct. 5, 2013
Jul. 13, 2013
Apr. 19, 2014
Apr. 20, 2013
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net income
$ 84,434 
$ 122,177 
$ 139,488 
$ 49,267 
$ 103,830 
$ 116,871 
$ 147,726 
$ 121,790 
$ 493,825 
$ 391,758 
$ 387,670 
Participating securities' share in earnings
 
 
 
 
 
 
 
 
(1,555)
(895)
(870)
Net income applicable to common shares
 
 
 
 
 
 
 
 
$ 492,270 
$ 390,863 
$ 386,800 
Basic weighted average common shares
 
 
 
 
 
 
 
 
72,932 
72,930 
73,091 
Dilutive impact of share-based awards
 
 
 
 
 
 
 
 
482 
484 
971 
Diluted weighted average common shares
 
 
 
 
 
 
 
 
73,414 
73,414 
74,062 
Basic earnings per common share, Net income applicable to common stockholders
$ 1.15 
$ 1.67 
$ 1.91 
$ 0.68 
$ 1.42 
$ 1.60 
$ 2.02 
$ 1.66 
$ 6.75 
$ 5.36 
$ 5.29 
Diluted earnings per common share, Net income applicable to common stockholders
$ 1.15 
$ 1.66 
$ 1.89 
$ 0.67 
$ 1.42 
$ 1.59 
$ 2.01 
$ 1.65 
$ 6.71 
$ 5.32 
$ 5.22 
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount
 
 
 
 
 
 
 
 
13 
75 
221 
Income Taxes (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Income Taxes [Line Items]
 
 
 
Current Federal Tax Expense (Benefit)
$ 204,743 
$ 202,784 
$ 185,564 
Deferred Federal Income Tax Expense (Benefit)
45,389 
(1,898)
21,940 
Federal Income Tax Expense (Benefit), Continuing Operations
250,132 
200,886 
207,504 
Current State and Local Tax Expense (Benefit)
19,359 
25,287 
20,116 
Deferred State and Local Income Tax Expense (Benefit)
4,830 
(339)
4,953 
State and Local Income Tax Expense (Benefit), Continuing Operations
24,189 
24,948 
25,069 
Current Foreign Tax Expense (Benefit)
14,999 
8,806 
3,831 
Deferred Foreign Income Tax Expense (Benefit)
(1,751)
0 
0 
Foreign Income Tax Expense (Benefit), Continuing Operations
13,248 
8,806 
3,831 
Current Income Tax Expense (Benefit)
239,101 
236,877 
209,511 
Deferred income tax benefit
48,468 
(2,237)
26,893 
Income Tax Expense (Benefit)
287,569 
234,640 
236,404 
Income before provision for income taxes at statutory US federal income tax rate (35%)
273,488 
219,239 
218,426 
State income taxes, net of federal income tax benefit
15,723 
16,216 
16,295 
Other, net
(1,642)
(815)
1,683 
Deferred income tax assets
151,997 
101,979 
 
Valuation allowance
(5,084)
(1,557)
 
Deferred income tax liabilities
(593,264)
(321,778)
 
Net deferred income tax liabilities
(446,351)
(221,356)
 
Deferred Tax Assets, Operating Loss Carryforwards, Domestic
1,297 
2,207 
 
Deferred Tax Assets, Operating Loss Carryforwards, State and Local
6,847 
2,130 
 
Undistributed Earnings of Foreign Subsidiaries
108,000 
 
 
Deferred Tax Assets (Liabilities), Net, Current
(89,173)
(135,754)
 
Deferred Tax Liabilities, Noncurrent
(360,903)
(91,957)
 
Unrecognized tax benefits, beginning of period
18,458 
16,708 
24,711 
Increases related to prior period tax positions
0 
0 
702 
Decreases related to prior period tax positions
(4,841)
(1,313)
(9,629)
Increases related to current period tax positions
4,329 
3,678 
3,985 
Settlements
(2,345)
0 
(1,111)
Expiration of statute of limitations
(1,568)
(615)
(1,950)
Unrecognized tax benefits, end of period
14,033 
18,458 
16,708 
Unrecognized Tax Benefits that Would Impact Effective Tax Rate
14,033 
18,458 
16,708 
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense
(3,684)
818 
(754)
Unrecognized Tax Benefits, Interest on Income Taxes Accrued
1,759 
5,767 
 
Unrecognized Tax Benefits, Income Tax Penalties Accrued
138 
316 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Lower Bound
1,000 
 
 
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Estimated Range of Change, Upper Bound
2,000 
 
 
Other Current Liabilities [Member]
 
 
 
Income Taxes [Line Items]
 
 
 
Inventory valuation differences
(156,703)
(178,201)
 
Accrued medical and workers compensation
14,250 
9,370 
 
Accrued expenses not currently deductible for tax
48,684 
28,501 
 
Other, net
5,119 
5,612 
 
Deferred Tax Assets (Liabilities), Net, Current
(88,650)
(134,718)
 
Other Noncurrent Liabilities [Member]
 
 
 
Income Taxes [Line Items]
 
 
 
Accrued medical and workers compensation
30,424 
20,532 
 
Other, net
6,051 
12,425 
 
Property and equipment
(181,511)
(143,577)
 
Share-based compensation
13,721 
10,733 
 
Net operating loss carryforwards
7,233 
3,426 
 
Straight-line rent
21,431 
20,784 
 
Intangible assets
(255,050)
(10,961)
 
Deferred Tax Liabilities, Noncurrent
(357,701)
(86,638)
 
Domestic Tax Authority [Member]
 
 
 
Income Taxes [Line Items]
 
 
 
Operating Loss Carryforwards
3,705 
6,307 
 
State and Local Jurisdiction [Member]
 
 
 
Income Taxes [Line Items]
 
 
 
Operating Loss Carryforwards
$ 165,849 
$ 40,440 
 
Lease Commitments (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Operating Leased Assets [Line Items]
 
 
 
Lessor Leasing Arrangements, Operating Leases, Renewal Term
5 years 
 
 
2015
$ 460,655 
 
 
2016
439,530 
 
 
2017
402,581 
 
 
2018
363,154 
 
 
2019
317,982 
 
 
Thereafter
1,262,623 
 
 
Operating Leases, Future Minimum Payments Due
3,246,525 
 
 
Operating Leases, Future Minimum Payments Due, Future Minimum Sublease Rentals
20,289 
29,950 
 
Operating leases, Rent expense, gross
525,363 
363,592 
324,887 
Less: Sub-lease income
(9,966)
(5,983)
(4,600)
Operating leases, Rent expense, net
515,397 
357,609 
320,287 
Land, Buildings and Improvements [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Minimum rentals
463,345 
328,581 
300,552 
Contingency rentals
488 
578 
907 
Equipment [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Minimum rentals
8,230 
5,333 
5,027 
Vehicles [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Minimum rentals
$ 53,300 
$ 29,100 
$ 18,401 
Minimum [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Lessor Leasing Arrangements, Operating Leases, Term of Contract
10 years 
 
 
Maximum [Member]
 
 
 
Operating Leased Assets [Line Items]
 
 
 
Lessor Leasing Arrangements, Operating Leases, Term of Contract
15 years 
 
 
Benefit Plans (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Postemployment Benefits [Abstract]
 
 
 
Defined Contribution Plan, Cost Recognized
$ 15,208 
$ 10,850 
$ 10,255 
Deferred Compensation Liability, Classified, Noncurrent
$ 16,487 
$ 14,835 
 
Share-Based Compensation (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number of Shares Available for Grant
4,822 
 
 
Share-based compensation expense
$ 21,705 
$ 13,191 
$ 15,236 
Deferred income tax benefit
8,013 
4,991 
5,774 
Proceeds from the issuance of common stock, primarily exercise of stock options
6,578 
3,611 
8,495 
Tax withholdings related to the exercise of stock appreciation rights
(7,102)
(21,856)
(26,677)
Excess tax benefit from share-based compensation
10,487 
16,320 
23,099 
Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized
43,979 
 
 
Share-based Compensation, Nonvested Awards, Total Compensation Cost Not yet Recognized, Period for Recognition
1 year 7 months 16 days 
 
 
Risk-free interest rate (2)
1.20% 
1.10% 
0.50% 
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate
0.20% 
0.30% 
0.30% 
Expected stock price volatility (3)
27.00% 
26.90% 
33.20% 
Expected life of awards (in months) (4)
49 months 
49 months 
49 months 
Closing share price for calculation of aggregate intrinsic value
$ 158.56 
 
 
Employee Stock Option [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Options, Outstanding, Number
 
45 
 
Exercisable Options, Weighted Average Exercise Price
 
$ 41.64 
 
Options, Exercises in Period
(45)
 
 
Options, Exercises in period, Intrinsic value
3,747 
 
 
Stock Appreciation Rights (SARs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
Outstanding, beginning of period
1,090 
 
 
Outstanding, Weighted Average Exercise Price, beginning of period
$ 61.79 
 
 
Granted
0 
 
 
Granted, Weighted Average Exercise Price
$ 0.00 
 
 
Granted, Weighted Average Grant Date Fair Value
 
$ 18.55 
$ 19.25 
Exercised
(243)
 
 
Exercised, Weighted Average Exercise Price
$ 54.88 
 
 
Forfeited
(21)
 
 
Forfeited, Weighted Average Exercise Price
$ 67.71 
 
 
Outstanding, end of period
826 
1,090 
 
Outstanding, Weighted Average Exercise Price, end of period
$ 63.68 
$ 61.79 
 
Outstanding, Weighted Average Remaining Contractual Term
3 years 6 months 15 days 
 
 
Outstanding, Intrinsic Value
78,332 
 
 
Vested and expected to vest, Number
823 
 
 
Vested and expected to vest, Weighted average exercise price
$ 63.64 
 
 
Vested and expected to vest, Weighted average remaining contractual term
3 years 6 months 15 days 
 
 
Vested and expected to vest, Aggregate intrinsic value
78,107 
 
 
Outstanding and Exercisable, Number
714 
 
 
Outstanding and Exercisable, Weighted Average Exercise Price
$ 61.92 
 
 
Outstanding and Exercisable, Weighted Average Remaining Contractual Term
3 years 3 months 24 days 
 
 
Outstanding and Exercisable, Intrinsic Value
69,033 
 
 
Total intrinsic value of exercises during period
18,975 
36,998 
37,477 
Restricted Stock and Restricted Stock Units (RSUs) [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
Nonvested, beginning of period
210 
 
 
Nonvested, end of period
283 
210 
 
Nonvested, Weighted Average Grant Date Fair Value
$ 91.44 
 
 
Nonvested, Weighted Average Grant Date Fair Value
$ 123.89 
$ 91.44 
 
Granted
190 
 
 
Granted, Weighted Average Grant Date Fair Value
$ 139.43 
$ 102.19 
$ 75.26 
Vested
(94)
 
 
Vested, Weighted Average Grant Date Fair Value
$ 87.93 
 
 
Forfeited
(23)
 
 
Forfeited, Weighted Average Grant Date Fair Value
$ 103.75 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value
8,293 
5,035 
4,734 
Performance-based Stock Appreciation Rights (SARs) Awards [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
Outstanding, beginning of period
520 
 
 
Outstanding, Weighted Average Exercise Price, beginning of period
$ 78.21 
 
 
Granted
303 
 
 
Granted, Weighted Average Exercise Price
$ 141.57 
 
 
Granted, Weighted Average Grant Date Fair Value
$ 32.41 
$ 23.72 
$ 19.23 
Change in Units Based on Performance
(48)
 
 
Change in Units Based on Performance, Weighted Average Exercise Price
$ 90.57 
 
 
Exercised
(39)
 
 
Exercised, Weighted Average Exercise Price
$ 35.18 
 
 
Forfeited
(107)
 
 
Forfeited, Weighted Average Exercise Price
$ 68.97 
 
 
Outstanding, end of period
629 
520 
 
Outstanding, Weighted Average Exercise Price, end of period
$ 112.01 
$ 78.21 
 
Outstanding, Weighted Average Remaining Contractual Term
5 years 5 months 21 days 
 
 
Outstanding, Intrinsic Value
29,285 
 
 
Vested and expected to vest, Number
533 
 
 
Vested and expected to vest, Weighted average exercise price
$ 108.17 
 
 
Vested and expected to vest, Weighted average remaining contractual term
4 years 11 months 20 days 
 
 
Vested and expected to vest, Aggregate intrinsic value
26,864 
 
 
Outstanding and Exercisable, Number
92 
 
 
Outstanding and Exercisable, Weighted Average Exercise Price
$ 36.91 
 
 
Outstanding and Exercisable, Weighted Average Remaining Contractual Term
1 year 10 months 3 days 
 
 
Outstanding and Exercisable, Intrinsic Value
11,152 
 
 
Total intrinsic value of exercises during period
3,814 
14,257 
34,020 
Maximum potential payout of outstanding awards for Equity Instruments Other than Options
2,167 
 
 
Performance Shares [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense
6,161 
1,141 
3,267 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
Nonvested, beginning of period
182 
 
 
Nonvested, end of period
195 
182 
 
Nonvested, Weighted Average Grant Date Fair Value
$ 75.36 
 
 
Nonvested, Weighted Average Grant Date Fair Value
$ 81.98 
$ 75.36 
 
Granted
19 
 
 
Granted, Weighted Average Grant Date Fair Value
$ 123.32 
$ 77.47 
$ 75.20 
Vested
(2)
 
 
Vested, Weighted Average Grant Date Fair Value
$ 74.43 
 
 
Change in Units Based on Performance
6 
 
 
Change in Units Based on Performance, Weighted Average Grant Date Fair Value
$ 104.87 
 
 
Forfeited
(10)
 
 
Forfeited, Weighted Average Grant Date Fair Value
$ 76.09 
 
 
Maximum potential payout of outstanding awards for Equity Instruments Other than Options
462 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Vested in Period, Total Fair Value
142 
1,290 
4,858 
Deferred Stock Units [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Share-based compensation expense
$ 862 
$ 840 
$ 960 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
Granted
7 
 
 
Granted, Weighted Average Grant Date Fair Value
$ 122.80 
$ 83.63 
$ 69.82 
Employee Stock [Member]
 
 
 
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
 
 
 
Number of Shares Available for Grant
1,100 
 
 
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward]
 
 
 
Stock Issued During Period, Shares, Employee Stock Purchase Plans
39 
23 
34 
Accumulated Other Comprehensive Income Loss (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Dec. 31, 2011
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
$ (12,337)
$ 3,683 
$ 2,667 
$ 2,804 
Other Comprehensive Income (Loss), Net of Tax
(16,020)
1,016 
(137)
 
Unrealized Gain (Loss) on Hedging Arrangements [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
0 
0 
0 
(254)
Other Comprehensive Income (Loss), Net of Tax
0 
0 
254 
 
Unrealized Gain (Loss) on Postretirement Plan [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
2,931 
3,683 
2,667 
3,058 
Other Comprehensive Income (Loss), Net of Tax
(752)
1,016 
(391)
 
Currency Translation Adjustment [Member]
 
 
 
 
Accumulated Other Comprehensive Income (Loss) [Line Items]
 
 
 
 
Accumulated Other Comprehensive Income (Loss), Net of Tax
(15,268)
0 
0 
0 
Other Comprehensive Income (Loss), Net of Tax
$ (15,268)
$ 0 
$ 0 
 
Segment and Related Information (Details)
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Segment Reporting Information [Line Items]
 
 
 
Percentage of Sales by Product Group
100.00% 
100.00% 
100.00% 
Parts and Batteries [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of Sales by Product Group
69.00% 
67.00% 
65.00% 
Accessories [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of Sales by Product Group
13.00% 
14.00% 
14.00% 
Chemicals [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of Sales by Product Group
8.00% 
10.00% 
10.00% 
Oil [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of Sales by Product Group
8.00% 
9.00% 
10.00% 
Other [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Percentage of Sales by Product Group
2.00% 
0.00% 
1.00% 
Stores [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Number of Stores
5,261 
 
 
Branches [Member]
 
 
 
Segment Reporting Information [Line Items]
 
 
 
Number of Stores
111 
 
 
Condensed Consolidating Financial Statements Condensed Consolidating Balance Sheet (Details) (USD $)
In Thousands, unless otherwise specified
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Dec. 31, 2011
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Cash and cash equivalents
$ 104,671 
$ 1,112,471 
$ 598,111 
$ 57,901 
Receivables, net
579,825 
277,595 
 
 
Inventories, net
3,936,955 
2,556,557 
 
 
Other current assets
119,589 
42,761 
 
 
Total current assets
4,741,040 
3,989,384 
 
 
Property and equipment, net of accumulated depreciation
1,432,030 
1,283,970 
 
 
Assets held for sale
615 
2,064 
 
 
Goodwill
995,426 
199,835 
76,389 
 
Intangible assets, net
748,125 
49,872 
 
 
Other assets, net
45,122 
39,649 
 
 
Investment in subsidiaries
0 
 
 
 
Intercompany note receivable
0 
 
 
 
Due from intercompany,net
0 
 
 
 
Assets, Total
7,962,358 
5,564,774 
 
 
Current portion of long-term debt
582 
916 
 
 
Accounts payable
3,095,365 
2,180,614 
 
 
Accrued expenses
520,673 
428,625 
 
 
Other current liabilities
126,446 
154,630 
 
 
Total current liabilities
3,743,066 
2,764,785 
 
 
Long-term debt
1,636,311 
1,052,668 
 
 
Other long-term liabilities
580,069 
231,116 
 
 
Intercompany note payable
0 
 
 
 
Due to intercompany, net
0 
 
 
 
Commitments and Contingencies
   
   
 
 
Stockholders' equity
2,002,912 
1,516,205 
1,210,694 
847,914 
Liabilities and Stockholders' Equity, Total
7,962,358 
5,564,774 
 
 
Parent Company [Member]
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Cash and cash equivalents
9 
9 
 
 
Receivables, net
0 
 
 
 
Inventories, net
0 
 
 
 
Other current assets
4,102 
 
 
 
Total current assets
4,111 
 
 
 
Property and equipment, net of accumulated depreciation
2 
 
 
 
Assets held for sale
0 
 
 
 
Goodwill
0 
 
 
 
Intangible assets, net
0 
 
 
 
Other assets, net
12,963 
 
 
 
Investment in subsidiaries
2,057,761 
 
 
 
Intercompany note receivable
1,047,911 
 
 
 
Due from intercompany,net
0 
 
 
 
Assets, Total
3,122,748 
 
 
 
Current portion of long-term debt
0 
 
 
 
Accounts payable
0 
 
 
 
Accrued expenses
4,884 
 
 
 
Other current liabilities
0 
 
 
 
Total current liabilities
4,884 
 
 
 
Long-term debt
1,047,911 
 
 
 
Other long-term liabilities
0 
 
 
 
Intercompany note payable
0 
 
 
 
Due to intercompany, net
67,041 
 
 
 
Commitments and Contingencies
   
 
 
 
Stockholders' equity
2,002,912 
 
 
 
Liabilities and Stockholders' Equity, Total
3,122,748 
 
 
 
Guarantor Subsidiaries [Member]
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Cash and cash equivalents
65,345 
1,106,766 
 
 
Receivables, net
549,151 
 
 
 
Inventories, net
3,771,816 
 
 
 
Other current assets
113,003 
 
 
 
Total current assets
4,499,315 
 
 
 
Property and equipment, net of accumulated depreciation
1,421,325 
 
 
 
Assets held for sale
615 
 
 
 
Goodwill
940,817 
 
 
 
Intangible assets, net
689,745 
 
 
 
Other assets, net
36,762 
 
 
 
Investment in subsidiaries
280,014 
 
 
 
Intercompany note receivable
0 
 
 
 
Due from intercompany,net
0 
 
 
 
Assets, Total
7,868,593 
 
 
 
Current portion of long-term debt
582 
 
 
 
Accounts payable
2,845,043 
 
 
 
Accrued expenses
498,505 
 
 
 
Other current liabilities
115,497 
 
 
 
Total current liabilities
3,459,627 
 
 
 
Long-term debt
588,400 
 
 
 
Other long-term liabilities
570,027 
 
 
 
Intercompany note payable
1,047,911 
 
 
 
Due to intercompany, net
144,867 
 
 
 
Commitments and Contingencies
   
 
 
 
Stockholders' equity
2,057,761 
 
 
 
Liabilities and Stockholders' Equity, Total
7,868,593 
 
 
 
Non-Guarantor Subsidiaries [Member]
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Cash and cash equivalents
39,326 
5,696 
 
 
Receivables, net
30,674 
 
 
 
Inventories, net
165,139 
 
 
 
Other current assets
3,383 
 
 
 
Total current assets
238,522 
 
 
 
Property and equipment, net of accumulated depreciation
10,703 
 
 
 
Assets held for sale
0 
 
 
 
Goodwill
54,609 
 
 
 
Intangible assets, net
58,380 
 
 
 
Other assets, net
683 
 
 
 
Investment in subsidiaries
0 
 
 
 
Intercompany note receivable
0 
 
 
 
Due from intercompany,net
211,908 
 
 
 
Assets, Total
574,805 
 
 
 
Current portion of long-term debt
0 
 
 
 
Accounts payable
250,322 
 
 
 
Accrued expenses
17,284 
 
 
 
Other current liabilities
11,857 
 
 
 
Total current liabilities
279,463 
 
 
 
Long-term debt
0 
 
 
 
Other long-term liabilities
15,328 
 
 
 
Intercompany note payable
0 
 
 
 
Due to intercompany, net
0 
 
 
 
Commitments and Contingencies
   
 
 
 
Stockholders' equity
280,014 
 
 
 
Liabilities and Stockholders' Equity, Total
574,805 
 
 
 
Consolidation, Eliminations [Member]
 
 
 
 
Condensed Balance Sheet Statements, Captions [Line Items]
 
 
 
 
Cash and cash equivalents
(9)
0 
 
 
Receivables, net
0 
 
 
 
Inventories, net
0 
 
 
 
Other current assets
(899)
 
 
 
Total current assets
(908)
 
 
 
Property and equipment, net of accumulated depreciation
0 
 
 
 
Assets held for sale
0 
 
 
 
Goodwill
0 
 
 
 
Intangible assets, net
0 
 
 
 
Other assets, net
(5,286)
 
 
 
Investment in subsidiaries
(2,337,775)
 
 
 
Intercompany note receivable
(1,047,911)
 
 
 
Due from intercompany,net
(211,908)
 
 
 
Assets, Total
(3,603,788)
 
 
 
Current portion of long-term debt
0 
 
 
 
Accounts payable
0 
 
 
 
Accrued expenses
0 
 
 
 
Other current liabilities
(908)
 
 
 
Total current liabilities
(908)
 
 
 
Long-term debt
0 
 
 
 
Other long-term liabilities
(5,286)
 
 
 
Intercompany note payable
(1,047,911)
 
 
 
Due to intercompany, net
(211,908)
 
 
 
Commitments and Contingencies
   
 
 
 
Stockholders' equity
(2,337,775)
 
 
 
Liabilities and Stockholders' Equity, Total
$ (3,603,788)
 
 
 
Condensed Consolidating Financial Statements Condensed Consolidating Income Statements (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended
Jan. 3, 2015
Oct. 4, 2014
Jul. 12, 2014
Dec. 28, 2013
Oct. 5, 2013
Jul. 13, 2013
Apr. 19, 2014
Apr. 20, 2013
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 2,237,209 
$ 2,289,456 
$ 2,347,697 
$ 1,408,813 
$ 1,520,144 
$ 1,549,553 
$ 2,969,499 
$ 2,015,304 
$ 9,843,861 
$ 6,493,814 
$ 6,205,003 
Cost of sales, including purchasing and warehousing costs
 
 
 
 
 
 
 
 
5,390,248 
3,241,668 
3,106,967 
Gross Profit
1,003,941 
1,034,442 
1,062,108 
701,777 
762,940 
779,223 
1,353,122 
1,008,206 
4,453,613 
3,252,146 
3,098,036 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
3,601,903 
2,591,828 
2,440,721 
Operating Income (Loss)
 
 
 
 
 
 
 
 
851,710 
660,318 
657,315 
Interest expense
 
 
 
 
 
 
 
 
(73,408)
(36,618)
(33,841)
Other income (expense), net
 
 
 
 
 
 
 
 
3,092 
2,698 
600 
Total other, net
 
 
 
 
 
 
 
 
(70,316)
(33,920)
(33,241)
Income before provision for income taxes
 
 
 
 
 
 
 
 
781,394 
626,398 
624,074 
Provision for income taxes
 
 
 
 
 
 
 
 
287,569 
234,640 
236,404 
Income before equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
493,825 
 
 
Equity in earnings of subsidiary
 
 
 
 
 
 
 
 
0 
 
 
Net income
84,434 
122,177 
139,488 
49,267 
103,830 
116,871 
147,726 
121,790 
493,825 
391,758 
387,670 
Parent Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
0 
 
 
Cost of sales, including purchasing and warehousing costs
 
 
 
 
 
 
 
 
0 
 
 
Gross Profit
 
 
 
 
 
 
 
 
0 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
14,504 
 
 
Operating Income (Loss)
 
 
 
 
 
 
 
 
(14,504)
 
 
Interest expense
 
 
 
 
 
 
 
 
(52,946)
 
 
Other income (expense), net
 
 
 
 
 
 
 
 
67,470 
 
 
Total other, net
 
 
 
 
 
 
 
 
14,524 
 
 
Income before provision for income taxes
 
 
 
 
 
 
 
 
20 
 
 
Provision for income taxes
 
 
 
 
 
 
 
 
296 
 
 
Income before equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
(276)
 
 
Equity in earnings of subsidiary
 
 
 
 
 
 
 
 
494,101 
 
 
Net income
 
 
 
 
 
 
 
 
493,825 
 
 
Guarantor Subsidiaries [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
9,530,953 
 
 
Cost of sales, including purchasing and warehousing costs
 
 
 
 
 
 
 
 
5,231,421 
 
 
Gross Profit
 
 
 
 
 
 
 
 
4,299,532 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
3,541,370 
 
 
Operating Income (Loss)
 
 
 
 
 
 
 
 
758,162 
 
 
Interest expense
 
 
 
 
 
 
 
 
(20,334)
 
 
Other income (expense), net
 
 
 
 
 
 
 
 
(9,140)
 
 
Total other, net
 
 
 
 
 
 
 
 
(29,474)
 
 
Income before provision for income taxes
 
 
 
 
 
 
 
 
728,688 
 
 
Provision for income taxes
 
 
 
 
 
 
 
 
277,769 
 
 
Income before equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
450,919 
 
 
Equity in earnings of subsidiary
 
 
 
 
 
 
 
 
43,182 
 
 
Net income
 
 
 
 
 
 
 
 
494,101 
 
 
Non-Guarantor Subsidiaries [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
527,595 
 
 
Cost of sales, including purchasing and warehousing costs
 
 
 
 
 
 
 
 
373,514 
 
 
Gross Profit
 
 
 
 
 
 
 
 
154,081 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
102,370 
 
 
Operating Income (Loss)
 
 
 
 
 
 
 
 
51,711 
 
 
Interest expense
 
 
 
 
 
 
 
 
(128)
 
 
Other income (expense), net
 
 
 
 
 
 
 
 
1,103 
 
 
Total other, net
 
 
 
 
 
 
 
 
975 
 
 
Income before provision for income taxes
 
 
 
 
 
 
 
 
52,686 
 
 
Provision for income taxes
 
 
 
 
 
 
 
 
9,504 
 
 
Income before equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
43,182 
 
 
Equity in earnings of subsidiary
 
 
 
 
 
 
 
 
0 
 
 
Net income
 
 
 
 
 
 
 
 
43,182 
 
 
Consolidation, Eliminations [Member]
 
 
 
 
 
 
 
 
 
 
 
Condensed Income Statements, Captions [Line Items]
 
 
 
 
 
 
 
 
 
 
 
Net sales
 
 
 
 
 
 
 
 
(214,687)
 
 
Cost of sales, including purchasing and warehousing costs
 
 
 
 
 
 
 
 
(214,687)
 
 
Gross Profit
 
 
 
 
 
 
 
 
0 
 
 
Selling, general and administrative expenses
 
 
 
 
 
 
 
 
(56,341)
 
 
Operating Income (Loss)
 
 
 
 
 
 
 
 
56,341 
 
 
Interest expense
 
 
 
 
 
 
 
 
0 
 
 
Other income (expense), net
 
 
 
 
 
 
 
 
(56,341)
 
 
Total other, net
 
 
 
 
 
 
 
 
(56,341)
 
 
Income before provision for income taxes
 
 
 
 
 
 
 
 
0 
 
 
Provision for income taxes
 
 
 
 
 
 
 
 
0 
 
 
Income before equity in earnings of subsidiaries
 
 
 
 
 
 
 
 
0 
 
 
Equity in earnings of subsidiary
 
 
 
 
 
 
 
 
(537,283)
 
 
Net income
 
 
 
 
 
 
 
 
$ (537,283)
 
 
Condensed Consolidating Financial Statements Condensed Consolidating Comprehensive Income Statements (Details) (USD $)
In Thousands, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended
Jan. 3, 2015
Oct. 4, 2014
Jul. 12, 2014
Dec. 28, 2013
Oct. 5, 2013
Jul. 13, 2013
Apr. 19, 2014
Apr. 20, 2013
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Net income
$ 84,434 
$ 122,177 
$ 139,488 
$ 49,267 
$ 103,830 
$ 116,871 
$ 147,726 
$ 121,790 
$ 493,825 
$ 391,758 
$ 387,670 
Changes in net unrecognized other postretirement benefit costs, net of tax
 
 
 
 
 
 
 
 
(752)
(438)
(391)
Currency translation
 
 
 
 
 
 
 
 
(15,268)
0 
0 
Equity in other comprehensive (loss) income of subsidiaries
 
 
 
 
 
 
 
 
0 
 
 
Total other comprehensive income (loss)
 
 
 
 
 
 
 
 
(16,020)
1,016 
(137)
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
477,805 
392,774 
387,533 
Parent Company [Member]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
493,825 
 
 
Changes in net unrecognized other postretirement benefit costs, net of tax
 
 
 
 
 
 
 
 
0 
 
 
Currency translation
 
 
 
 
 
 
 
 
0 
 
 
Equity in other comprehensive (loss) income of subsidiaries
 
 
 
 
 
 
 
 
(16,020)
 
 
Total other comprehensive income (loss)
 
 
 
 
 
 
 
 
(16,020)
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
477,805 
 
 
Guarantor Subsidiaries [Member]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
494,101 
 
 
Changes in net unrecognized other postretirement benefit costs, net of tax
 
 
 
 
 
 
 
 
(752)
 
 
Currency translation
 
 
 
 
 
 
 
 
0 
 
 
Equity in other comprehensive (loss) income of subsidiaries
 
 
 
 
 
 
 
 
(15,268)
 
 
Total other comprehensive income (loss)
 
 
 
 
 
 
 
 
(16,020)
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
478,081 
 
 
Non-Guarantor Subsidiaries [Member]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
43,182 
 
 
Changes in net unrecognized other postretirement benefit costs, net of tax
 
 
 
 
 
 
 
 
0 
 
 
Currency translation
 
 
 
 
 
 
 
 
(15,268)
 
 
Equity in other comprehensive (loss) income of subsidiaries
 
 
 
 
 
 
 
 
0 
 
 
Total other comprehensive income (loss)
 
 
 
 
 
 
 
 
(15,268)
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
27,914 
 
 
Consolidation, Eliminations [Member]
 
 
 
 
 
 
 
 
 
 
 
Net income
 
 
 
 
 
 
 
 
(537,283)
 
 
Changes in net unrecognized other postretirement benefit costs, net of tax
 
 
 
 
 
 
 
 
0 
 
 
Currency translation
 
 
 
 
 
 
 
 
0 
 
 
Equity in other comprehensive (loss) income of subsidiaries
 
 
 
 
 
 
 
 
31,288 
 
 
Total other comprehensive income (loss)
 
 
 
 
 
 
 
 
31,288 
 
 
Comprehensive Income (Loss)
 
 
 
 
 
 
 
 
$ (505,995)
 
 
Condensed Consolidating Financial Statements Condensed Consolidating Statement of Cash Flows (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Condensed Cash Flow Statements, Captions [Line Items]
 
 
 
Net Cash Provided by (Used in) Operating Activities
$ 708,991 
$ 545,250 
$ 685,281 
Purchases of property and equipment
(228,446)
(195,757)
(271,182)
Business acquisitions, net of cash acquired
(2,060,783)
(186,137)
(8,369)
Proceeds from sales of property and equipment
992 
745 
6,573 
Net Cash (used in) provided by Investing Activities
(2,288,237)
(362,107)
(272,978)
Increase (decrease) in bank overdrafts
16,219 
(2,926)
(7,459)
Borrowings under credit facilities
2,238,200 
0 
58,500 
Payments on credit facilities
(1,654,800)
0 
(173,500)
Dividends paid
(17,580)
(17,574)
(17,596)
Proceeds from the issuance of common stock, primarily exercise of stock options
6,578 
3,611 
8,495 
Tax withholdings related to the exercise of stock appreciation rights
(7,102)
(21,856)
(26,677)
Excess tax benefit from share-based compensation
10,487 
16,320 
23,099 
Repurchase of common stock
(5,154)
(80,795)
(27,095)
Contingent consideration related to previous business acquisition
(10,047)
(4,726)
(10,911)
Other
(890)
(627)
4,089 
Net Cash Provided by (Used in) Financing Activities
575,911 
331,217 
127,907 
Effect of exchange rate changes on cash
(4,465)
0 
0 
Net (decrease) increase in cash and cash equivalents
(1,007,800)
514,360 
540,210 
Cash and cash equivalents
104,671 
1,112,471 
598,111 
Parent Company [Member]
 
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
 
Net Cash Provided by (Used in) Operating Activities
0 
 
 
Purchases of property and equipment
0 
 
 
Business acquisitions, net of cash acquired
0 
 
 
Proceeds from sales of property and equipment
0 
 
 
Net Cash (used in) provided by Investing Activities
0 
 
 
Increase (decrease) in bank overdrafts
0 
 
 
Borrowings under credit facilities
0 
 
 
Payments on credit facilities
0 
 
 
Dividends paid
0 
 
 
Proceeds from the issuance of common stock, primarily exercise of stock options
0 
 
 
Tax withholdings related to the exercise of stock appreciation rights
0 
 
 
Excess tax benefit from share-based compensation
0 
 
 
Repurchase of common stock
0 
 
 
Contingent consideration related to previous business acquisition
0 
 
 
Other
0 
 
 
Net Cash Provided by (Used in) Financing Activities
0 
 
 
Effect of exchange rate changes on cash
0 
 
 
Net (decrease) increase in cash and cash equivalents
0 
 
 
Cash and cash equivalents
9 
9 
 
Guarantor Subsidiaries [Member]
 
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
 
Net Cash Provided by (Used in) Operating Activities
666,566 
 
 
Purchases of property and equipment
(224,894)
 
 
Business acquisitions, net of cash acquired
(2,059,987)
 
 
Proceeds from sales of property and equipment
974 
 
 
Net Cash (used in) provided by Investing Activities
(2,283,907)
 
 
Increase (decrease) in bank overdrafts
16,228 
 
 
Borrowings under credit facilities
2,238,200 
 
 
Payments on credit facilities
(1,654,800)
 
 
Dividends paid
(17,580)
 
 
Proceeds from the issuance of common stock, primarily exercise of stock options
6,578 
 
 
Tax withholdings related to the exercise of stock appreciation rights
(7,102)
 
 
Excess tax benefit from share-based compensation
10,487 
 
 
Repurchase of common stock
(5,154)
 
 
Contingent consideration related to previous business acquisition
(10,047)
 
 
Other
(890)
 
 
Net Cash Provided by (Used in) Financing Activities
575,920 
 
 
Effect of exchange rate changes on cash
0 
 
 
Net (decrease) increase in cash and cash equivalents
(1,041,421)
 
 
Cash and cash equivalents
65,345 
1,106,766 
 
Non-Guarantor Subsidiaries [Member]
 
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
 
Net Cash Provided by (Used in) Operating Activities
42,425 
 
 
Purchases of property and equipment
(3,552)
 
 
Business acquisitions, net of cash acquired
(796)
 
 
Proceeds from sales of property and equipment
18 
 
 
Net Cash (used in) provided by Investing Activities
(4,330)
 
 
Increase (decrease) in bank overdrafts
0 
 
 
Borrowings under credit facilities
0 
 
 
Payments on credit facilities
0 
 
 
Dividends paid
0 
 
 
Proceeds from the issuance of common stock, primarily exercise of stock options
0 
 
 
Tax withholdings related to the exercise of stock appreciation rights
0 
 
 
Excess tax benefit from share-based compensation
0 
 
 
Repurchase of common stock
0 
 
 
Contingent consideration related to previous business acquisition
0 
 
 
Other
0 
 
 
Net Cash Provided by (Used in) Financing Activities
0 
 
 
Effect of exchange rate changes on cash
(4,465)
 
 
Net (decrease) increase in cash and cash equivalents
33,630 
 
 
Cash and cash equivalents
39,326 
5,696 
 
Consolidation, Eliminations [Member]
 
 
 
Condensed Cash Flow Statements, Captions [Line Items]
 
 
 
Net Cash Provided by (Used in) Operating Activities
0 
 
 
Purchases of property and equipment
0 
 
 
Business acquisitions, net of cash acquired
0 
 
 
Proceeds from sales of property and equipment
0 
 
 
Net Cash (used in) provided by Investing Activities
0 
 
 
Increase (decrease) in bank overdrafts
(9)
 
 
Borrowings under credit facilities
0 
 
 
Payments on credit facilities
0 
 
 
Dividends paid
0 
 
 
Proceeds from the issuance of common stock, primarily exercise of stock options
0 
 
 
Tax withholdings related to the exercise of stock appreciation rights
0 
 
 
Excess tax benefit from share-based compensation
0 
 
 
Repurchase of common stock
0 
 
 
Contingent consideration related to previous business acquisition
0 
 
 
Other
0 
 
 
Net Cash Provided by (Used in) Financing Activities
(9)
 
 
Effect of exchange rate changes on cash
0 
 
 
Net (decrease) increase in cash and cash equivalents
(9)
 
 
Cash and cash equivalents
$ (9)
$ 0 
 
Quarterly Financial Data (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified
3 Months Ended 4 Months Ended 12 Months Ended
Jan. 3, 2015
Oct. 4, 2014
Jul. 12, 2014
Dec. 28, 2013
Oct. 5, 2013
Jul. 13, 2013
Apr. 19, 2014
Apr. 20, 2013
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Quarterly Financial Information Disclosure [Abstract]
 
 
 
 
 
 
 
 
 
 
 
Net sales
$ 2,237,209 
$ 2,289,456 
$ 2,347,697 
$ 1,408,813 
$ 1,520,144 
$ 1,549,553 
$ 2,969,499 
$ 2,015,304 
$ 9,843,861 
$ 6,493,814 
$ 6,205,003 
Gross Profit
1,003,941 
1,034,442 
1,062,108 
701,777 
762,940 
779,223 
1,353,122 
1,008,206 
4,453,613 
3,252,146 
3,098,036 
Net income
$ 84,434 
$ 122,177 
$ 139,488 
$ 49,267 
$ 103,830 
$ 116,871 
$ 147,726 
$ 121,790 
$ 493,825 
$ 391,758 
$ 387,670 
Basic earnings per common share
$ 1.15 
$ 1.67 
$ 1.91 
$ 0.68 
$ 1.42 
$ 1.60 
$ 2.02 
$ 1.66 
$ 6.75 
$ 5.36 
$ 5.29 
Diluted earnings per common share
$ 1.15 
$ 1.66 
$ 1.89 
$ 0.67 
$ 1.42 
$ 1.59 
$ 2.01 
$ 1.65 
$ 6.71 
$ 5.32 
$ 5.22 
Valuation and Qualifying Accounts (Details) (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jan. 3, 2015
Dec. 28, 2013
Dec. 29, 2012
Dec. 31, 2011
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
 
Allowance for Doubtful Accounts Receivable, Current
$ 16,152 
$ 13,295 
 
 
Allowance for Doubtful Accounts [Member]
 
 
 
 
Valuation and Qualifying Accounts Disclosure [Line Items]
 
 
 
 
Allowance for Doubtful Accounts Receivable, Current
16,152 
13,295 
5,919 
4,056 
Valuation Allowances and Reserves, Charged to Cost and Expense
17,182 
11,955 
4,127 
 
Valuation Allowances and Reserves, Deductions
(14,325)
(4,995)
(2,264)
 
Valuation Allowances and Reserves, Charged to Other Accounts
$ 0 
$ 416 
$ 0