Document and Entity Information Document - USD ($)	12 Months Ended
Document and Entity Information Document - USD ($)	Dec. 31, 2016	Feb. 23, 2017	Jul. 15, 2016
Document Information [Line Items]
Entity Registrant Name	Advance Auto Parts Inc
Entity Central Index Key	0001158449
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-K
Document Period End Date	Dec. 31, 2016
Document Fiscal Year Focus	2016
Document Fiscal Period Focus	FY
Amendment Flag	false
Entity Common Stock, Shares Outstanding		73,761,599
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	No
Entity Public Float			$ 11,647,903,451

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Current assets:
Cash and cash equivalents	$ 135,178	$ 90,782
Receivables, net	641,252	597,788
Inventories, net	4,325,868	4,174,768
Other current assets	70,466	77,408
Total current assets	5,172,764	4,940,746
Property and equipment, net of accumulated depreciation	1,446,340	1,434,577
Goodwill	990,877	989,484
Intangible assets, net	640,903	687,125
Other assets, net	64,149	75,769
Assets, Total	8,315,033	8,127,701
Current liabilities:
Current portion of long-term debt	306	598
Accounts payable	3,086,177	3,203,922
Accrued expenses	554,397	553,163
Other current liabilities	35,166	39,794
Total current liabilities	3,676,046	3,797,477
Long-term debt	1,042,949	1,206,297
Deferred income taxes	454,282	433,925
Other long-term liabilities	225,564	229,354
Commitments and Contingencies
Stockholders' equity:
Preferred stock, nonvoting, $0.0001 par value	0	0
Common stock, voting, $0.0001 par value	8	7
Additional paid-in capital	631,052	603,332
Treasury stock, at cost	(138,102)	(119,709)
Accumulated other comprehensive income (loss)	(39,701)	(44,059)
Retained earnings	2,462,935	2,021,077
Total stockholders' equity	2,916,192	2,460,648
Liabilities and Stockholders' Equity, Total	$ 8,315,033	$ 8,127,701

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) shares in Thousands, $ in Thousands	Dec. 31, 2016	Jan. 02, 2016
Accumulated Depreciation, Property and Equipment	$ 1,660,648	$ 1,489,766
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	75,326	74,775
Common Stock, Shares, Outstanding	73,749	73,314
Treasury Stock, Shares	1,577	1,461

CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Thousands	3 Months Ended						4 Months Ended		12 Months Ended
	Dec. 31, 2016	Oct. 08, 2016	Jul. 16, 2016	Jan. 02, 2016	Oct. 10, 2015	Jul. 18, 2015	Apr. 23, 2016	Apr. 25, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Net sales	$ 2,082,891	$ 2,248,855	$ 2,256,155	$ 2,033,545	$ 2,295,203	$ 2,370,037	$ 2,979,778	$ 3,038,233	$ 9,567,679	$ 9,737,018	$ 9,843,861
Cost of sales, including purchasing and warehousing costs									5,311,764	5,314,246	5,390,248
Gross profit	907,564	988,205	1,010,257	909,172	1,032,387	1,087,289	1,349,889	1,393,924	4,255,915	4,422,772	4,453,613
Selling, general and administrative expenses									3,468,317	3,596,992	3,601,903
Operating income									787,598	825,780	851,710
Other, net:
Interest expense									(59,910)	(65,408)	(73,408)
Other income (expense), net									11,147	(7,484)	3,092
Total other, net									(48,763)	(72,892)	(70,316)
Income before provision for income taxes									738,835	752,888	781,394
Provision for income taxes									279,213	279,490	287,569
Net income	$ 62,365	$ 113,844	$ 124,600	$ 54,819	$ 120,469	$ 149,998	$ 158,813	$ 148,112	$ 459,622	$ 473,398	$ 493,825
Basic earnings per common share	$ 0.84	$ 1.54	$ 1.69	$ 0.75	$ 1.64	$ 2.04	$ 2.16	$ 2.02	$ 6.22	$ 6.45	$ 6.75
Diluted earnings per common share	$ 0.84	$ 1.53	$ 1.68	$ 0.74	$ 1.63	$ 2.03	$ 2.14	$ 2.00	6.20	6.40	6.71
Dividends declared per common share									$ 0.24	$ 0.24	$ 0.24
Weighted average common shares outstanding									73,562	73,190	72,932
Weighted average common shares outstanding - assuming dilution									73,856	73,733	73,414

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended						4 Months Ended		12 Months Ended
	Dec. 31, 2016	Oct. 08, 2016	Jul. 16, 2016	Jan. 02, 2016	Oct. 10, 2015	Jul. 18, 2015	Apr. 23, 2016	Apr. 25, 2015	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Net income	$ 62,365	$ 113,844	$ 124,600	$ 54,819	$ 120,469	$ 149,998	$ 158,813	$ 148,112	$ 459,622	$ 473,398	$ 493,825
Changes in net unrecognized other postretirement benefit costs, net of tax									(534)	(445)	(752)
Currency translation adjustments									4,892	(31,277)	(15,268)
Total other comprehensive income (loss)									4,358	(31,722)	(16,020)
Comprehensive income									$ 463,980	$ 441,676	$ 477,805

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Parenthetical) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Statement of Comprehensive Income [Abstract]
Changes in net unrecognized other postretirement benefit costs, tax	$ 346	$ 289	$ 483

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) shares in Thousands, $ 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. 28, 2013	$ 1,516,205	$ 0	$ 7	$ 531,293	$ (107,890)	$ 3,683	$ 1,089,112
Balance (in shares) at Dec. 28, 2013		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, net	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 declared	(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		0	74,493		1,419
Net income	473,398						473,398
Total other comprehensive income (loss)	(31,722)					(31,722)
Issuance of shares upon the exercise of stock options and stock appreciation rights	0			0
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares)			138
Tax withholdings related to the exercise of stock appreciation rights	(13,112)			(13,112)
Tax benefit from share-based compensation, net	12,989			12,989
Restricted stock and restricted stock units vested	0
Restricted stock and restricted stock units vested (in shares)			109
Share-based compensation	35,336			35,336
Stock issued under employee stock purchase plan	5,139			5,139
Stock issued under employee stock purchase plan (in shares)			35
Repurchase of common stock	(6,665)				$ (6,665)
Repurchase of common stock (in shares)					42
Cash dividends declared	(17,662)						(17,662)
Other	35			35
Balance at Jan. 02, 2016	$ 2,460,648	$ 0	$ 7	603,332	$ (119,709)	(44,059)	2,021,077
Balance (in shares) at Jan. 02, 2016	73,314	0	74,775		1,461
Net income	$ 459,622						459,622
Total other comprehensive income (loss)	4,358					4,358
Issuance of shares upon the exercise of stock options and stock appreciation rights	1		$ 1
Issuance of shares upon the exercise of stock options and stock appreciation rights (in shares)			149
Tax withholdings related to the exercise of stock appreciation rights	(19,558)			(19,558)
Tax benefit from share-based compensation, net	22,325			22,325
Restricted stock and restricted stock units vested	0
Restricted stock and restricted stock units vested (in shares)			372
Share-based compensation	20,422			20,422
Stock issued under employee stock purchase plan	4,369			4,369
Stock issued under employee stock purchase plan (in shares)			30
Repurchase of common stock	(18,393)				$ (18,393)
Repurchase of common stock (in shares)					116
Cash dividends declared	(17,764)						(17,764)
Other	162			162
Balance at Dec. 31, 2016	$ 2,916,192	$ 0	$ 8	$ 631,052	$ (138,102)	$ (39,701)	$ 2,462,935
Balance (in shares) at Dec. 31, 2016	73,749	0	75,326		1,577

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
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	12 Months Ended
	Dec. 31, 2016	Jan. 02, 2016	Jan. 03, 2015
Cash flows from operating activities:
Net income	$ 459,622	$ 473,398	$ 493,825
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	258,387	269,476	284,693
Share-based compensation	20,452	36,929	21,705
Loss on property and equipment, net	5,999	12,882	13,281
Other	(2,039)	2,660	2,631
Provision (benefit) for deferred income taxes	20,213	(9,219)	48,468
Excess tax benefit from share-based compensation	(22,429)	(13,002)	(10,487)
Net Increase Decrease in Operating Capital, net of effect from acquisition of businesses
Receivables, net	(41,642)	(21,476)	(48,209)
Inventories, net	(144,603)	(244,096)	(227,657)
Other assets	14,421	7,423	(63,482)
Accounts payable	(119,325)	119,164	216,412
Accrued expenses	49,341	35,103	(28,862)
Other liabilities	2,477	20,400	6,673
Net cash provided by operating activities	500,874	689,642	708,991
Cash flows from investing activities:
Purchases of property and equipment	(259,559)	(234,747)	(228,446)
Business acquisitions, net of cash acquired	(4,697)	(18,889)	(2,060,783)
Proceeds from sales of property and equipment	2,212	270	992
Net cash used in investing activities	(262,044)	(253,366)	(2,288,237)
Cash flows from financing activities:
(Decrease) increase in bank overdrafts	(5,573)	(2,922)	16,219
Borrowings under credit facilities	799,600	618,300	2,238,200
Payments on credit facilities	(959,600)	(1,041,700)	(1,654,800)
Dividends paid	(17,738)	(17,649)	(17,580)
Proceeds from the issuance of common stock, primarily for employee stock purchase plan	4,532	5,174	6,578
Tax withholdings related to the exercise of stock appreciation rights	(19,558)	(13,112)	(7,102)
Excess tax benefit from share-based compensation	22,429	13,002	10,487
Repurchase of common stock	(18,393)	(6,665)	(5,154)
Contingent consideration related to previous business acquisition	0	0	(10,047)
Other	(390)	(380)	(890)
Net cash (used in) provided by financing activities	(194,691)	(445,952)	575,911
Effect of exchange rate changes on cash	257	(4,213)	(4,465)
Net increase (decrease) in cash and cash equivalents	44,396	(13,889)	(1,007,800)
Cash and cash equivalents, beginning of period	90,782	104,671	1,112,471
Cash and cash equivalents, end of period	135,178	90,782	104,671
Supplemental cash flow information:
Interest paid	55,457	62,371	71,109
Income tax payments	225,327	254,408	268,624
Non-cash transactions:
Accrued purchases of property and equipment	21,176	44,038	28,877
Changes in other comprehensive income from post retirement benefits	(534)	(445)	(752)
Declared but unpaid cash dividends	$ 4,424	$ 4,398	$ 4,384

Summary of Significant Accounting Policies

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

Summary of Significant Accounting Policies

Summary of Significant Accounting Policies:

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 December 31, 2016, the Company's operations are comprised of 5,062 stores and 127 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." In addition, we served approximately 1,250 independently-owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos, the British Virgin Islands and the Pacific Islands as of December 31, 2016. As further described in Note 3, Acquisitions, 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 Professional, 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 Professional customers’ places of business, including independent garages, service stations and auto dealers, utilizing a fleet of vehicles to deliver product from its 4,501 store and branch locations with delivery service.

Accounting Period

The Company’s fiscal year ends on the Saturday nearest the end of December. Fiscal years 2016 and 2015 each contained 52 weeks, while fiscal 2014 contained 53 weeks. The additional week of operations for fiscal 2014 was included in the Company's fourth quarter. All references herein for the years 2016, 2015 and 2014 represent the fiscal years ended December 31, 2016, January 2, 2016 and January 3, 2015, 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 in less than four business days. Credit and debit card receivables included in Cash and cash equivalents as of December 31, 2016 and January 2, 2016 were $26,480 and $37,906, 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 $13,124 and $18,584 are included in Other current liabilities as of December 31, 2016 and January 2, 2016, respectively.

Receivables

Receivables, net consist primarily of receivables from Professional customers and vendors. The Company grants credit to certain Professional 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 Professional 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 and volume purchase rebates. 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 2016 and prior years.

Vendor Incentives

The Company receives incentives in the form of reductions to amounts owed to and/or payments from vendors related to 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). 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 allowances that do not meet the requirements for offsetting in SG&A are recorded initially as a reduction to inventory as they are earned based on inventory purchases and reduce cost of sales as the inventory is sold. Total deferred vendor incentives included as a reduction of Inventory was $211,072 and $210,674 as of December 31, 2016 and January 2, 2016, 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 qualifying vendor promotional funds, was $97,003, $108,827 and $96,463 in 2016, 2015 and 2014, respectively. Vendor promotional funds, which reduced advertising expense, amounted to $29,308 and $17,530 and $21,814 in 2016, 2015 and 2014, 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.

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:



	December 31, 2016			January 2, 2016			January 3, 2015
Self-insurance reserves, beginning of period	$	133,975		$	137,033		$	98,475
Additions to self-insurance reserves	163,693			160,232			159,752
Acquired reserves	—			—			41,673
Reserves utilized	(157,045		)	(163,290		)	(162,867		)
Self-insurance reserves, end of period	$	140,623		$	133,975		$	137,033

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 Professional 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, sales incentives 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 December 31, 2016 and January 2, 2016.

Share-Based Payments

The Company provides share-based compensation to its eligible 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.

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. Losses from foreign currency transactions, which are included in Other income, net, were $7,430 during 2015. Gains and losses from foreign currency transactions were not significant in 2016 or 2014.

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) and the net unrealized gain associated with the Company's postretirement benefit plan.

Goodwill and Other Intangible Assets

The Company records goodwill equal to the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. 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. 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 2016, 2015 and 2014, the Company recognized impairment losses of $2,759 and $11,017 and $11,819, respectively, on various store and corporate assets. The remaining fair value of these assets was not significant.

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 units. 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 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. 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 $76,358 and $70,802 as of December 31, 2016 and January 2, 2016, respectively. In addition to minimum fixed rental payments, some leases provide for contingent facility rentals. 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, or at fair value at acquisition if acquired through a business combination, less accumulated depreciation. 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 Facility 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. In addition, the Company is consolidating certain locations as part of its planned integration of GPI. Expenses accrued pertaining to closed facility exit activities are included in the Company’s closed facility 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 facility 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 facility 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 facility 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 if the disposal represents a strategic shift that has (or will have) a major effect on the Company's operations and financial results.

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
•	Total cost of merchandise sold including:		•	Payroll and benefit costs for store and corporate
	-	Freight expenses associated with moving		Team Members;
		merchandise inventories from our vendors to	•	Occupancy costs of store and corporate facilities;
		our distribution center,	•	Depreciation and amortization related to store and
	-	Vendor incentives, and		corporate assets;
	-	Cash discounts on payments to vendors;	•	Advertising;
•	Inventory shrinkage;		•	Costs associated with our Professional delivery
•	Defective merchandise and warranty costs;			program, including payroll and benefit costs,
•	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;
•	Freight and other handling costs associated with		•	Self-insurance costs;
	moving merchandise inventories through our		•	Professional services;
	supply chain		•	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	•	Closed facility expense;
	-	From certain of our larger stores which stock a	•	Impairment charges; and
		wider variety and greater supply of inventory (“HUB	•	GPI integration costs.
		stores”) to our stores after the customer has
		special-ordered the merchandise.

Recently Adopted Accounting Pronouncements

The Company adopted Accounting Standards Update ("ASU") 2015-03 "Interest - Imputation of Interest (Subtopic 835-30): Simplifying the Presentation of Debt Issuance Costs" effective January 3, 2016, or the beginning of fiscal 2016. ASU 2015-03 simplifies the presentation of debt issuance costs by requiring such costs be presented as a deduction from the corresponding debt liability. Concurrently, the Company also adopted ASU 2015-15 "Interest - Imputed Interest (Subtopic 835-30): Presentation and Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements" which clarifies that entities may continue to defer and present debt issuance costs associated with a line-of-credit as an asset and subsequently amortize the deferred costs ratably over the term of the arrangement. The adoption of these ASU's have been retrospectively applied and resulted in a reclassification of $6,864 of debt issuance costs from Other assets, net to Long-term debt in the accompanying consolidated balance sheets as of January 2, 2016.

The Company adopted 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" effective the beginning of fiscal 2016. 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 adoption of this standard did not impact the Company's consolidated financial statements as the Company's policies were already consistent with the new guidance.

Recently Issued Accounting Pronouncements

In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" to simplify the accounting for goodwill impairment. The guidance removes Step 2 of the goodwill impairment test, which required a hypothetical purchase price allocation. A goodwill impairment will now be the amount by which a reporting unit's carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, with early adoption permitted after January 1, 2017. 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 August 2016, the FASB issued ASU 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" related to the classification of certain cash receipts and cash payments on the statement of cash flows. The pronouncement provides clarification guidance on eight specific cash flow presentation issues that have developed due to diversity in practice. The issues include, but are not limited to, debt prepayment or extinguishment costs, settlement of zero-coupon debt, proceeds from the settlement of insurance claims, and cash receipts from payments on beneficial interests in securitization transactions. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2017, with early adoption 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 2016, the FASB issued ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”, which requires businesses to present financial assets, measured at an amortized cost basis, at the net amount expected to be collected. The allowance for credit losses is a valuation account that is deducted from the amortized cost basis, such as trade receivables. The measurement of expected credit loss will be based on historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The ASU is effective for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2019, and requires a modified retrospective adoption, with early adoption 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 March 2016, the FASB issued ASU 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" aimed at simplifying certain aspects of accounting for share-based payment transactions. The areas for simplification include the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The standard will be applied both prospectively and retrospectively depending on the provision. The Company will adopt ASU 2016-09 in the first quarter of fiscal 2017 and will record an immaterial cumulative effect adjustment to beginning retained earnings related to the Company's election to record forfeitures as they occur. The Company does not expect the provisions of the new guidance to have a material impact on its consolidated financial statements, except as it relates to the provision requiring the inclusion of excess tax benefits (deficits) as a component of income tax expense in the consolidated results of operations. This provision will be applied prospectively and the impact will be dependent on the volume of future exercise and vesting activity and changes in the Company's stock price.

In February 2016, the FASB issued ASU 2016-02, "Leases (Topic 842)." This ASU is a comprehensive new leases standard that amends various aspects of existing guidance for leases and requires additional disclosures about leasing arrangements. It will require lessees to recognize lease assets and lease liabilities for all leases, including those leases previously classified as operating leases under current GAAP. Topic 842 retains a distinction between finance leases and operating leases. The classification criteria for distinguishing between finance leases and operating leases are substantially similar to the classification criteria for distinguishing between capital leases and operating leases in the previous leases guidance. The ASU is effective for annual periods beginning after December 15, 2018, including interim periods within those fiscal years; earlier adoption is permitted. In the financial statements in which the ASU is first applied, leases will be measured and recognized at the beginning of the earliest comparative period presented with an adjustment to equity. Practical expedients are available for election as a package and if applied consistently to all leases.

From a balance sheet perspective, the Company expects adoption of the new standard to have a material effect on its Total assets and Total liabilities as a result of recording the required right of use asset and associated lease liability. However, the Company has not completed its analysis and is unable to quantify the impact at this time. At this time the Company does not expect adoption of ASU 2016-02 to have a material impact on its consolidated statements of operations as the majority of its leases will remain operating in nature. As such, the expense recognition will be similar to previously required straight-line expense treatment. The Company is also in the process of identifying changes to its business processes, systems and controls to support adoption of the new standard in fiscal 2019.

In January 2016, the FASB issued ASU 2016-01 "Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities." Although the ASU retains many of the current requirements for financial instruments, it significantly revises an entity’s accounting related to (1) the classification and measurement of investments in equity securities and (2) the presentation of certain fair value changes for financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. The ASU is effective for annual periods and interim periods within those annual periods beginning after December 15, 2017; 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 July 2015, the FASB issued ASU 2015-11 "Inventory (Topic 330): Simplifying the Measurement of Inventory." ASU 2015-11 requires entities to measure most inventory at the lower of cost or net recognizable value, simplifying the current requirement that inventories be measured at the lower of cost or market. The ASU will not apply to inventories that are measured using the last-in, first-out method or retail inventory method. The guidance will be effective prospectively for annual periods, and interim periods within those annual periods, that begin after December 15, 2016; earlier adoption is permitted. As the majority of the Company's inventory is accounted for under the last-in, first-out method, 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 (Topic 606)." This ASU, along with subsequent ASU's issued to clarify certain provisions of ASU 2014-09, 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. In August 2015, the FASB issued ASU 2015-14 which defers the effective date of ASU 2014-09 by one year. As a result, ASU 2014-09 will become effective during annual reporting periods beginning after December 15, 2017 and interim reporting periods during the year of adoption with public entities permitted to early adopt for reporting periods beginning after December 15, 2016. Entities may choose from two transition methods which include, with certain practical expedients, a full retrospective method with restatement of prior years or the modified retrospective method, requiring prospective application of the new standard with disclosure of results under old standards. The Company plans to adopt the new standard effective January 1, 2018 and apply the modified retrospective method.

The Company is currently analyzing the impact of ASU 2014-09, as amended, on its revenue contracts, comparing the Company's current accounting policies and practices to the requirements of the new standard and identifying potential differences that would result from applying the new standard to its contracts. At this time, the Company does not expect adoption of the new standard to have a material impact on its consolidated financial condition, results of operations or cash flows. Additionally, the Company does not anticipate any significant changes to business processes, controls or systems as a result of adopting the new standard.

Inventories, net

12 Months Ended

Dec. 31, 2016

Inventory, Net [Abstract]

Inventories, net

Inventories, net:

Merchandise Inventory

The Company used the LIFO method of accounting for approximately 89% of inventories at both December 31, 2016 and January 2, 2016. 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 2016 and prior years. As a result of utilizing LIFO, the Company recorded a reduction to cost of sales of $40,711 and $42,295 in 2016 and 2015, respectively, and an increase to cost of sales of $8,930 in 2014. Historically, the Company’s overall costs to acquire inventory for the same or similar products have generally decreased 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 December 31, 2016 and January 2, 2016, were $395,240 and $359,829, respectively.

Inventory Balance and Inventory Reserves

Inventory balances at the end of 2016 and 2015 were as follows:



	December 31, 2016		January 2, 2016
Inventories at FIFO, net	$	4,120,030	$	4,009,641
Adjustments to state inventories at LIFO	205,838		165,127
Inventories at LIFO, net	$	4,325,868	$	4,174,768

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 merchandise and core inventory. In its distribution centers and branches, the Company uses a cycle counting program to ensure the accuracy of the perpetual inventory quantities of merchandise and product core inventory. Reserves for estimated shrink are established based on the results of physical inventories conducted by the Company and 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 December 31, 2016, January 2, 2016 and January 3, 2015:



	December 31, 2016			January 2, 2016			January 3, 2015
Inventory reserves, beginning of period	$	70,383		$	49,439		$	37,523
Additions to inventory reserves	118,710			97,226			92,773
Reserves utilized	(98,458		)	(76,282		)	(80,857		)
Inventory reserves, end of period	$	90,635		$	70,383		$	49,439

Acquisitions	12 Months Ended
Acquisitions	Dec. 31, 2016
Business Combinations [Abstract]
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, was a leading distributor and supplier of original equipment and aftermarket replacement products for Professional 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 branded stores. The acquisition of GPI allowed the Company to expand its geographic presence, Professional 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 7, Long-Term Debt, for a more detailed description of this debt. The Company recognized no acquisition-related costs during Fiscal 2014 or Fiscal 2015, 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. Approximately half of the escrow funds were disbursed to the Sellers in July 2015 and the remaining amount was distributed in January 2017, after deducting for any claims indemnified from escrow or pending as of such release. According to the agreement, the Company was indemnified, in addition to other things, for the escrow term of three years, against losses incurred relating to taxes owed by GPI for periods prior to June 30, 2013. Other The Company acquired 7, 23 and 9 stores through multiple cash transactions during 2016, 2015 and 2014, respectively. The aggregate cost of the store acquisitions during 2016, 2015 and 2014 was $4,697, $18,889 and $5,155, respectively, the value of which was primarily attributed to inventory, accounts receivable and goodwill. The fair value of assets and liabilities assumed are included in the balance sheets as of December 31, 2016 and January 2, 2016. Proforma financial information is not provided based on materiality. The results of these stores are not material to the Company's consolidated financial statements.

- Definition

The entire disclosure for a business combination (or series of individually immaterial business combinations) completed during the period, including background, timing, and recognized assets and liabilities. The disclosure may include leverage buyout transactions (as applicable).

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
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Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Section 50
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
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Reference 7: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
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Reference 13: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=73530397&loc=SL65897772-128472

Reference 14: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 805
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Reference 15: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=35744584&loc=d3e6996-128479

+ Details

Exit Activities and Impairment

12 Months Ended

Dec. 31, 2016

Restructuring and Related Activities [Abstract]

Exit Activities and Impairment

Exit Activities and Impairment:

Integration of Carquest stores

The Company approved plans in June 2014 to begin consolidating its Carquest stores acquired with GPI on January 2, 2014 as part of a multi-year integration plan. As of December 31, 2016, 333 Carquest stores acquired with GPI had been consolidated into existing Advance Auto Parts stores and 282 stores had been converted to the Advance Auto Parts format. In addition, as of December 31, 2016 the Company had completed the consolidation and conversion of stores that were acquired with B.W.P. Distributors, Inc. ("BWP") on December 31, 2012 (which also operated under the Carquest trade name). During 2016, a total of 156 Carquest stores were consolidated and 123 stores were converted. During 2015, a total of 84 Carquest stores were consolidated and 180 stores were converted. As of December 31, 2016, the Company had 608 stores acquired with GPI still operating under the Carquest name. The Company incurred $18,900, $7,286 and $7,888 of exit costs related to the consolidations and conversions during 2016, 2015 and 2014, respectively, primarily related to closed store lease obligations.

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 relocated various functions between its existing offices in Roanoke and Raleigh. The relocations and office closings were substantially complete by the end of 2015. The Company incurred restructuring costs of approximately $22,100 under these plans through the end of 2015. Substantially all of these costs were cash expenditures. During 2015 and 2014, the Company recognized $3,869 and $6,731, respectively, of severance/outplacement benefits under these restructuring plans and other severance related to the acquisition of GPI. During 2015 and 2014, the Company recognized $4,419 and $7,053, respectively, of relocation costs associated with these plans.

Other Exit Activities

In the second half of 2015, the Company closed 80 underperforming Advance Auto Parts, Carquest and Autopart International ("AI") stores and eliminated certain positions at its corporate offices. The majority of the corporate office eliminations were effective during the third quarter of fiscal 2015. The Company recognized $6,909 of severance costs related to the elimination of corporate office positions during 2015. The Company also incurred restructuring costs of $21,984 related to the 80 store closures in 2015, primarily consisting of closed facility lease obligations.

In 2015, the Company completed its plan approved in August 2014 to consolidate and convert its 40 AI stores located in Florida into Advance Auto Parts stores. During 2015, the Company incurred $2,700 of exit costs, consisting primarily of closed facility lease obligations, associated with this plan.

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 consolidated balance sheets, are presented in the following table:



	Closed Facility Lease Obligations			Severance			Relocation and Other Exit Costs			Total

Balance, January 2, 2016	$	42,490		$	6,255		$	351		$	49,096
Reserves established	23,252			988			238			24,478
Change in estimates	(3,073		)	(410		)	—			(3,483		)
Cash payments	(18,404		)	(5,874		)	(589		)	(24,867		)
Balance, December 31, 2016	$	44,265		$	959		$	—		$	45,224

Balance, January 3, 2015	$	19,270		$	5,804		$	1,816		$	26,890
Reserves established	34,699			13,351			4,419			52,469
Change in estimates	(205		)	(2,009		)	—			(2,214		)
Cash payments	(11,274		)	(10,891		)	(5,884		)	(28,049		)
Balance, January 2, 2016	$	42,490		$	6,255		$	351		$	49,096

Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2016

Goodwill and Intangible Assets Disclosure [Abstract]

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.



	December 31, 2016		January 2, 2016
	(52 weeks ended)		(52 weeks ended)
Goodwill, beginning of period	$	989,484	$	995,426
Acquisitions	—		1,995
Changes in foreign currency exchange rates	1,393		(7,937		)

Goodwill, end of period	$	990,877	$	989,484

During 2015, the Company added $1,995 of goodwill associated with the acquisition of 23 stores.

Intangible Assets Other Than Goodwill

Amortization expense was $48,020, $53,056 and $56,499 for 2016, 2015 and 2014, respectively. The gross carrying amounts and accumulated amortization of acquired intangible assets as of December 31, 2016 and January 2, 2016 are comprised of the following:



	December 31, 2016							January 2, 2016
	Gross Carrying Amount		Accumulated Amortization			Net		Gross Carrying Amount		Accumulated Amortization			Net
Amortized intangible assets:
Customer relationships	$	349,615	$	(89,420	)	$	260,195	$	358,655	$	(70,367	)	$	288,288
Acquired technology	—		—			—		8,850		(8,850		)	—
Favorable leases	48,693		(24,864		)	23,829		56,040		(23,984		)	32,056
Non-compete and other	54,130		(32,708		)	21,422		57,430		(25,368		)	32,062
	452,438		(146,992		)	305,446		480,975		(128,569		)	352,406

Unamortized intangible assets:
Brands, trademark and tradenames	335,457		—			335,457		334,719		—			334,719

Total intangible assets	$	787,895	$	(146,992	)	$	640,903	$	815,694	$	(128,569	)	$	687,125

During 2016, the Company retired $29,342 of fully amortized intangible assets, impacting both the gross carrying amount and accumulated amortization by this amount.

Future Amortization Expense

The table below shows expected amortization expense for the next five years and thereafter for acquired intangible assets recorded as of December 31, 2016:



Fiscal Year	Amount
2017	$	45,738
2018	42,795
2019	32,380
2020	31,728
2021	31,066
Thereafter	121,739

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Receivables, net

12 Months Ended

Dec. 31, 2016

Receivables [Abstract]

Receivables, net

Receivables, net:

Receivables consist of the following:



	December 31, 2016			January 2, 2016
Trade	$	407,301		$	379,832
Vendor	239,770			229,496
Other	23,345			14,218
Total receivables	670,416			623,546
Less: Allowance for doubtful accounts	(29,164		)	(25,758		)
Receivables, net	$	641,252		$	597,788

- Definition

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Long-term Debt

12 Months Ended

Dec. 31, 2016

Debt Disclosure [Abstract]

Long-term Debt

Long-term Debt:

Long-term debt consists of the following:



	December 31, 2016			January 2, 2016
Revolving facility at variable interest rates (2.05% at January 2, 2016) due December 5, 2018	$	—		$	80,000
Term loan at variable interest rates (1.69% at January 2, 2016)	—			80,000
5.75% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $1,994 and $2,577 at December 31, 2016 and January 2, 2016, respectively) due May 1, 2020	298,006			297,423
4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $1,384 and $1,660 at December 31, 2016 and January 2, 2016, respectively) due January 15, 2022	298,616			298,340
4.50% Senior Unsecured Notes (net of unamortized discount and debt issuance costs of $3,673 and $4,179 at December 31, 2016 and January 2, 2016) due December 1, 2023	446,327			445,821
Other	306			5,311
	1,043,255			1,206,895
Less: Current portion of long-term debt	(306		)	(598		)
Long-term debt, excluding current portion	$	1,042,949		$	1,206,297

Adoption of new accounting pronouncement

The Company adopted ASU 2015-3 and ASU 2015-15 effective the beginning of fiscal 2016. ASU 2015-3 simplifies the presentation of debt issuance costs by requiring such costs be presented as a deduction from the corresponding debt liability. ASU 2015-15 clarifies that entities may continue to defer and present debt issuance costs associated with a line-of-credit as an asset and subsequently amortize the deferred costs ratably over the term of the arrangement. The adoption of these ASU's has been retrospectively applied and resulted in a reclassification of $6,864 of debt issuance costs from Other assets, net to Long-term debt as of January 2, 2016.

Bank Debt

As of December 31, 2016 the Company had a credit agreement (the "2013 Credit Agreement") which provided 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. The revolving credit facility also provided 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 2013 credit agreement also provided a $700,000 unsecured term loan which was repaid in full as of December 31, 2016. The Company could 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 were 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. Subsequent to December 31, 2016, the Company completed the refinancing of its revolving credit facility as described further below.

As of December 31, 2016, the Company had no outstanding borrowings under the revolver. As of December 31, 2016, the Company had letters of credit outstanding of $100,719, which reduced the availability under the revolver to $899,281. The letters of credit 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 was based, at the Company’s option, on adjusted LIBOR, plus a margin, or an alternate base rate, plus a margin. A facility fee was charged on the total amount of the revolving credit facility, payable in arrears. The facility fee rate as of December 31, 2016 was 0.15% per annum. Under the terms of the 2013 Credit Agreement, the interest rate and facility fee were subject to change based on the Company’s credit rating.

The 2013 Credit Agreement contained 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 were required to comply with financial covenants with respect to a maximum leverage ratio and a minimum consolidated coverage ratio. The 2013 Credit Agreement also provided 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 as of December 31, 2016.

Senior Unsecured Notes

The Company's 4.50% senior unsecured notes were issued in December 2013 at 99.69% of the principal amount of $450,000 and 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 Company's 4.50% senior unsecured notes were issued in January 2012 at 99.968% of the principal amount of $300,000 and 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's 5.75% senior unsecured notes were issued in April 2010 at 99.587% of the principal amount of $300,000 and 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 December 31, 2016, the aggregate future annual maturities of long-term debt instruments are as follows:



Fiscal Year	Amount
2017	$	306
2018	—
2019	—
2020	300,000
2021	—
Thereafter	750,000
	$	1,050,306

Debt Guarantees

The Company is a guarantor of loans made by banks to various independently-owned Carquest branded stores that are customers of the Company ("Independents") totaling $26,332 as of December 31, 2016. 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 $70,074 as of December 31, 2016. 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.

Subsequent Event

On January 31, 2017, the Company entered into a new credit agreement which provides a $1,000,000 unsecured revolving credit facility (the “2017 Credit Agreement”) with Advance Stores, as Borrower, the lenders party thereto, and Bank of America, N.A., as the administrative agent. This new revolver under the 2017 Credit Agreement replaced the revolver under the 2013 Credit Agreement. The new revolver provides for the issuance of letters of credit with a sublimit of $200,000. The Company may request that the total revolving commitment be increased by an amount not exceeding $250,000 during the term of the 2017 Credit Agreement. Voluntary prepayments and voluntary reductions of the revolving loan balance, if any, are permitted in whole or in part, at the Company’s option, in minimum principal amounts as specified in the 2017 Credit Agreement.

The interest rates on outstanding amounts, if any, on the revolving facility under the 2017 Credit Agreement will be based, at the Company’s option, on an adjusted LIBOR, plus a margin, or an alternate base rate, plus a margin. After an initial interest period, the Company may elect to convert a particular borrowing to a different type. The initial margins per annum for the revolving loan are, 1.10% for the adjusted LIBOR and 0.10% for alternate base rate borrowings. A facility fee of 0.15% per annum will be charged on the total revolving facility commitment, payable quarterly in arrears. Under the terms of the 2017 Credit Agreement, the interest rate spread, facility fee and commitment fee will be based on the Company’s credit rating. The revolving facility terminates in January 2022; however, the Company may request one or two one-year extensions of the termination date prior to the first or second anniversary of the Closing Date.

The 2017 Credit Agreement contains customary covenants restricting the ability of: (a) Advance Stores and its subsidiaries to, among other things, (i) create, incur or assume additional debt (only with respect to subsidiaries of Advance Stores), (ii) incur liens, (iii) guarantee obligations, and (iv) change the nature of its business conducted by itself and its subsidiaries; (b) the Company, Advance Stores and their subsidiaries to, among other things (i) enter into certain hedging arrangements, (ii) enter into restrictive agreements limiting their ability to incur liens on any of their property or assets, pay distributions, repay loans, or guarantee indebtedness of their subsidiaries; and (c) the Company, among other things, to change the holding company status of the Company. Advance Stores is required to comply with financial covenants with respect to a maximum leverage ratio and a minimum coverage ratio. The 2017 Credit Agreement also provides for customary events of default, including non-payment defaults, covenant defaults and cross-defaults of Advance Stores’ other material indebtedness.

Fair Value Measurements

12 Months Ended

Dec. 31, 2016

Fair Value Disclosures [Abstract]

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.

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.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The Company had no significant assets or liabilities that were measured at fair value on a recurring basis during 2016 or 2015.

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). During 2016 and 2015, the Company recorded impairment charges of $2,759 and $11,017, respectively, on various store and corporate assets. The remaining fair value of these assets following impairment was not significant.

Fair Value of Financial Assets and Liabilities

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 as of December 31, 2016 and January 2, 2016, respectively, are as follows:



	December 31, 2016		January 2, 2016
Carrying Value	$	1,042,949	$	1,206,297
Fair Value	$	1,118,000	$	1,262,000

The adoption of ASU 2015-3 resulted in a reclassification of $6,864 of debt issuance costs from Other assets, net to Long-term debt decreasing the carrying value as of January 2, 2016.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Property and Equipment

12 Months Ended

Dec. 31, 2016

Property, Plant and Equipment [Abstract]

Property and Equipment

Property and Equipment:

Property and equipment consists of the following:



	Original Useful Lives	December 31, 2016			January 2, 2016
Land and land improvements	0 - 10 years	$	444,262		$	441,048
Buildings	30 - 40 years	471,740			468,237
Building and leasehold improvements	3 - 30 years	451,979			418,352
Furniture, fixtures and equipment	3 - 20 years	1,583,096			1,464,791
Vehicles	2 - 13 years	35,133			25,060
Construction in progress		120,778			106,855
		3,106,988			2,924,343
Less - Accumulated depreciation		(1,660,648		)	(1,489,766		)
Property and equipment, net		$	1,446,340		$	1,434,577

Depreciation expense was $215,981, $223,728 and $235,040 for 2016, 2015 and 2014, respectively. The Company capitalized $13,035, $13,529 and $11,436 incurred for the development of internal use computer software during 2016, 2015 and 2014, respectively. These costs are included in the furniture, fixtures and equipment category above and are depreciated on the straight-line method over three to ten years.

Accrued Expenses

12 Months Ended

Dec. 31, 2016

Payables and Accruals [Abstract]

Accrued Expenses

Accrued Expenses:

Accrued expenses consist of the following:



	December 31, 2016		January 2, 2016
Payroll and related benefits	$	97,496	$	99,072
Taxes payable	121,860		96,098
Self-insurance reserves	58,743		57,829
Warranty reserves	47,243		44,479
Capital expenditures	21,176		44,038
Other	207,879		211,647
Total accrued expenses	$	554,397	$	553,163

The following table presents changes in the Company’s warranty reserves:



	December 31, 2016			January 2, 2016			January 3, 2015
Warranty reserves, beginning of period	$	44,479		$	47,972		$	39,512
Reserves acquired with GPI	—			—			4,490
Additions to warranty reserves	46,903			44,367			52,306
Reserves utilized	(44,139		)	(47,860		)	(48,336		)
Warranty reserves, end of period	$	47,243		$	44,479		$	47,972

Stock Repurchases	12 Months Ended
Stock Repurchases	Dec. 31, 2016
Stock Repurchases: [Abstract]
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 December 31, 2016 was authorized by its Board of Directors on May 14, 2012. During 2016 and 2015, 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 December 31, 2016. The Company repurchased 116 shares of its common stock at an aggregate cost of $18,393, or an average price of $158.84 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 2016. The Company repurchased 42 shares of its common stock at an aggregate cost of $6,665, or an average price of $156.98 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 2015.

Earnings per Share

12 Months Ended

Dec. 31, 2016

Earnings Per Share [Abstract]

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 2016, 2015 and 2014, earnings of $1,945, $1,653 and $1,555, respectively, were allocated to the participating securities for the purpose of computing earnings per share.

Diluted earnings per share are calculated by including the effect of dilutive securities. Share-based awards to purchase approximately 19, 1 and 13 shares of common stock that had an exercise price in excess of the average market price of the common stock during 2016, 2015 and 2014, respectively, were not included in the calculation of diluted earnings per share because they were anti-dilutive.

The following table illustrates the computation of basic and diluted earnings per share for 2016, 2015 and 2014, respectively:



	2016			2015			2014
Numerator
Net income applicable to common shares	$	459,622		$	473,398		$	493,825
Participating securities’ share in earnings	(1,945		)	(1,653		)	(1,555		)
Net income applicable to common shares	$	457,677		$	471,745		$	492,270
Denominator
Basic weighted average common shares	73,562			73,190			72,932
Dilutive impact of share-based awards	294			543			482
Diluted weighted average common shares	73,856			73,733			73,414

Basic earnings per common share
Net income applicable to common stockholders	$	6.22		$	6.45		$	6.75
Diluted earnings per common share
Net income applicable to common stockholders	$	6.20		$	6.40		$	6.71

Income Taxes

12 Months Ended

Dec. 31, 2016

Income Tax Disclosure [Abstract]

Income Taxes

Income Taxes:

Provision for Income Taxes

Provision for income taxes for 2016, 2015 and 2014 consists of the following:



	Current		Deferred			Total
2016
Federal	$	209,499	$	17,989		$	227,488
State	29,345		1,366			30,711
Foreign	20,156		858			21,014
	$	259,000	$	20,213		$	279,213
2015
Federal	$	242,801	$	(6,564	)	$	236,237
State	33,023		(1,797		)	31,226
Foreign	12,885		(858		)	12,027
	$	288,709	$	(9,219	)	$	279,490
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

The provision for income taxes differed from the amount computed by applying the federal statutory income tax

rate due to:



	December 31, 2016		January 2, 2016			January 3, 2015
Income before provision for income taxes at statutory U.S. federal income tax rate (35%)	$	258,592	$	263,511		$	273,488
State income taxes, net of federal income tax benefit	19,962		20,297			15,723
Other, net	659		(4,318		)	(1,642		)
	$	279,213	$	279,490		$	287,569

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:



	December 31, 2016			January 2, 2016
Deferred income tax assets	$	164,858		$	171,571
Valuation allowance	(2,437		)	(2,861		)
Deferred income tax liabilities	(616,703		)	(602,635		)
Net deferred income tax liabilities	$	(454,282	)	$	(433,925	)

As of December 31, 2016, the Company had no deferred income tax assets related to federal net operating losses ("NOL"). As of January 2, 2016, the Company had deferred income tax assets of $386 related to federal NOLs of $1,103. As of December 31, 2016 and January 2, 2016 the Company had deferred income tax assets of $5,093 and $5,521 related to state NOLs of $153,011 and $145,809, respectively. These NOLs may be used to reduce future taxable income and expire periodically through Fiscal 2036. Due to uncertainties related to the realization of certain deferred tax assets for NOLs in certain jurisdictions, the Company recorded a valuation allowance of $2,437 and $2,861 as of December 31, 2016 and January 2, 2016, respectively. The amount of deferred income tax assets realizable, however, could change in the future if projections of future taxable income change. As of December 31, 2016 and January 2, 2016, the Company had cumulative net deferred income tax liabilities of $454,282 and $433,925, 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 $130 and $114 as of December 31, 2016 and January 2, 2016, respectively. 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:



	December 31, 2016			January 2, 2016
Deferred income tax assets (liabilities):
Property and equipment	$	(168,906	)	$	(171,378	)
Inventory valuation differences	(222,301		)	(190,756		)
Accrued expenses not currently deductible for tax	63,992			67,725
Share-based compensation	11,752			20,902
Accrued medical and workers compensation	46,116			44,152
Net operating loss carryforwards	5,093			5,907
Straight-line rent	31,631			26,626
Intangible assets	(225,496		)	(240,501		)
Other, net	3,837			3,398
Total deferred income tax assets (liabilities)	$	(454,282	)	$	(433,925	)

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 December 31, 2016, January 2, 2016 and January 3, 2015:



	December 31, 2016			January 2, 2016			January 3, 2015
Unrecognized tax benefits, beginning of period	$	13,841		$	14,033		$	18,458
Increases related to prior period tax positions	8,274			412			—
Decreases related to prior period tax positions	(1,600		)	(2,120		)	(4,841		)
Increases related to current period tax positions	2,105			3,137			4,329
Settlements	(6,894		)	(582		)	(2,345		)
Expiration of statute of limitations	(1,780		)	(1,039		)	(1,568		)
Unrecognized tax benefits, end of period	$	13,946		$	13,841		$	14,033

As of December 31, 2016, January 2, 2016 and January 3, 2015, 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 2016, the Company recorded potential interest and penalties of $1,947 related to uncertain tax positions. During 2015, the Company recorded potential interest and penalties of $149 related to uncertain tax positions. During 2014, the Company recognized a benefit from potential interest and penalties of $3,684. As of December 31, 2016, the Company had recorded a liability for potential interest and penalties of $2,658 and $155, respectively. As of January 2, 2016, the Company had recorded a liability for potential interest and penalties of $1,815 and $134, 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 $3,000 to $5,000 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 2012 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 2012.

Lease Commitments

12 Months Ended

Dec. 31, 2016

Leases [Abstract]

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 December 31, 2016, future minimum lease payments due under non-cancelable operating leases with lease terms extending through the year 2059 are as follows:



Fiscal Year	Amount
2017	$	472,723
2018	444,775
2019	406,671
2020	358,497
2021	296,651
Thereafter	1,181,760
	$	3,161,077

The Company anticipates its future minimum lease payments will be partially off-set by future minimum sub-lease income. As of December 31, 2016 future minimum sub-lease income to be received under non-cancelable operating leases is $18,789.

Net Rent Expense

Net rent expense for 2016, 2015 and 2014 was as follows:



	December 31, 2016			January 2, 2016			January 3, 2015
Minimum facility rentals	$	473,156		$	471,061		$	463,345
Contingency facility rentals	440			303			488
Equipment rentals	13,165			11,632			8,230
Vehicle rentals	60,983			61,147			53,300
	547,744			544,143			525,363
Less: Sub-lease income	(7,379		)	(7,569		)	(9,966		)
	$	540,365		$	536,574		$	515,397

Contingencies	12 Months Ended
Contingencies	Dec. 31, 2016
Commitments and Contingencies Disclosure [Abstract]
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 related to employment or arising from claims of discrimination as a result of claims by current and former Team Members or others. 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	12 Months Ended
Benefit Plans	Dec. 31, 2016
Postemployment Benefits [Abstract]
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 Parts plan at the beginning of fiscal 2015. Company contributions to these plans were $13,925, $14,626 and $15,208 in 2016, 2015 and 2014, 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 December 31, 2016 and January 2, 2016, these liabilities were $17,309 and $17,472, respectively.

Share-Based Compensation

12 Months Ended

Dec. 31, 2016

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

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 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”). All remaining shares of restricted stock, which were granted prior to the transition to RSUs in 2012, vested during 2015.

At December 31, 2016, there were 5,045 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. Shares forfeited and shares withheld for payment of taxes due become available for reissuance and are included in availability. 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. In 2016, the Company moved its annual stock award date from December of the current year to March of the following year. Awards granted during 2016 primarily consisted of an off-cycle award to the Company's new CEO hired in April 2016 and a broad-based incentive award to store and field team members.

Time-Vested Awards

The Company's outstanding time-vested awards consist of SARs and RSUs. The SARs generally vest over a three-year period in equal annual installments beginning on the first anniversary of the grant date. The 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 RSUs 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 are entitled to receive dividend equivalents, but are not entitled to voting rights.

Performance-Based Awards

The Company's outstanding performance-based awards consist of SARs and RSUs. Performance awards generally 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 generally ranges from 0% to 200% of the performance award. The performance RSUs generally do not have dividend equivalent rights and do not have voting rights until the shares are earned and issued following the applicable performance period. During 2016, the Company also granted broad-based incentive awards to store and field team members that will vest over a one-year service period based on the achievement of performance goals during 2016.

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 2016, 2015 and 2014 are as follows:



	2016			2015			2014
Share-based compensation expense	$	20,452		$	36,929		$	21,705
Deferred income tax benefit	7,530			13,596			8,013
Proceeds from the issuance of common stock, primarily for employee stock purchase plan	4,532			5,174			6,578
Tax withholdings related to the exercise of stock appreciation rights	(19,558		)	(13,112		)	(7,102		)
Excess tax benefit from share-based compensation	22,429			13,002			10,487

As of December 31, 2016, there was $37,166 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 Company modified selected awards for certain terminated employees during 2015, such that the employees would vest in awards that would have otherwise been forfeited. Incremental expense recognized during 2015 associated with these modifications was $6,633. Four of these modified awards were cash settled in March 2016 and therefore were accounted for as liability awards. The value of the liability awards was insignificant as of January 2, 2016.

The fair value of each SAR granted 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	2016		2015		2014

Risk-free interest rate⁽¹⁾	1.2	%	1.3	%	1.2	%
Expected dividend yield	0.2	%	0.1	%	0.2	%
Expected stock price volatility ⁽²⁾	27.7	%	27.3	%	27	%
Expected life of awards (in months) ⁽³⁾	55		44		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

The Company had no outstanding stock options during 2016 or 2015. 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 stock options exercised in 2014 was $3,747.

Stock Appreciation Rights

The following table summarizes the time-vested SARs activity for 2016:



	Number of Awards		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value

Outstanding at January 2, 2016	561		$	67.51
Granted	69		160.94
Exercised	(353	)	65.17
Forfeited	(2	)	56.93
Outstanding at December 31, 2016	275		$	93.89	3.15	$	20,713

Vested and expected to vest	253		$	87.84	2.87	$	20,526

Outstanding and exercisable	207		$	71.57	2.11	$	20,150

The weighted average fair value of time-vested SARs granted during 2016 was $43.64 per share. No time-vested SARs were granted in 2015 or 2014. The aggregate intrinsic value reflected in the table above and in the table below for performance-based SARs is based on the Company’s closing stock price of $169.12 as of the last trading day of Fiscal 2016. The aggregate intrinsic value of SARs exercised during 2016, 2015 and 2014 was $31,450, $26,060 and $18,975, respectively.

Restricted Stock Units and Restricted Stock

The following table summarizes the RSU activity for the fiscal year ended December 31, 2016:



	Number of Awards		Weighted-Average Grant Date Fair Value

Nonvested at January 2, 2016	270		$	142.65
Granted	88		155.51
Vested	(119	)	135.87
Forfeited	(28	)	144.27
Nonvested at December 31, 2016	211		$	151.70

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 granted during 2016, 2015 and 2014 was $155.51, $153.61 and $139.43 per share, respectively. The total grant date fair value of RSUs and restricted shares vested during 2016, 2015 and 2014 was $16,089, $15,268 and $8,293, respectively.

Performance-Based Awards

The number of performance-based awards outstanding is reflected in the following tables based on the number of awards that the Company believed were probable of vesting at December 31, 2016. Performance-based SARs and performance-based RSU's granted during 2016 are presented as grants in the table at their respective target levels. The change in units based on performance represents the change in the number granted awards expected to vest based on the Company's updated probability assessment as of December 31, 2016.

Compensation expense for performance-based awards of $802, $14,659, and $6,161 in 2016, 2015 and 2014, 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 2016:



	Number of Awards		Weighted-Average Exercise Price		Weighted-Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value

Outstanding at January 2, 2016	753		$	118.89
Granted	88		157.15
Change in units based on performance	(588	)	142.01
Exercised	(123	)	68.07
Forfeited	(16	)	112.96
Outstanding at December 31, 2016	114		$	86.95	2.89	$	9,355

Vested and expected to vest	113		$	86.82	2.89	$	9,323

Outstanding and exercisable	77		$	75.28	2.76	$	7,266

The weighted average fair value of performance-based SARs granted during 2016, 2015 and 2014 was $36.78, $43.38 and $32.41 per share, respectively. The aggregate intrinsic value of performance-based SARs exercised during 2016, 2015 and 2014 was $11,556, $8,475 and $3,814, respectively. As of December 31, 2016, the maximum potential payout under the Company’s currently outstanding performance-based SARs was 1,295 units.

Performance-Based Restricted Stock Units

The following table summarizes the performance-based RSUs activity for 2016:



	Number of Awards		Weighted-Average Grant Date Fair Value

Nonvested at January 2, 2016	183		$	81.81
Granted	427		163.76
Change in units based on performance	(288	)	166.23
Vested	(171	)	78.93
Forfeited	(13	)	81.81
Nonvested at December 31, 2016	138		$	162.71

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 2016 and 2014 was $163.76 and $123.32 per share, respectively. No performance-based RSUs were granted in 2015. The total grant date fair value of performance-based restricted stock vested during 2016, 2015 and 2014 was $13,512, $1,763 and $142, respectively. As of December 31, 2016, the maximum potential payout under the Company’s currently outstanding performance-based RSUs was 287 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 and will be distributed in common shares after the director’s service on the Board ends. DSUs granted in 2016 vest over a one year service period, while DSUs granted in 2015 and 2014 were fully vested on the grant date. 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 9 DSUs in 2016. The weighted average fair value of DSUs granted during 2016, 2015 and 2014 was $146.30, $156.83, and $122.80, 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 2016, 2015 and 2014, respectively, the Company recognized $896, $2,071, and $862 of share-based 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 of 10% from its fair market value on the date of purchase. 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. Team Members acquired 30, 35 and 39 shares under the ESPP in 2016, 2015 and 2014, respectively. As of December 31, 2016, there were 1,034 shares available to be issued under the ESPP.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References + Details

Accumulated Other Comprehensive Income Loss

12 Months Ended

Dec. 31, 2016

Stockholders' Equity Note [Abstract]

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 unrealized gains and losses on postretirement plan benefits, net of tax and foreign currency translation gains (losses). Accumulated other comprehensive income (loss), net of tax, for 2016, 2015 and 2014 consisted of the following:



	Unrealized Gain (Loss) on Postretirement Plan			Currency Translation			Accumulated Other Comprehensive Income (Loss)
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	)
Fiscal 2015 activity	(445		)	(31,277		)	(31,722		)
Balance, January 2, 2016	$	2,486		$	(46,545	)	$	(44,059	)
Fiscal 2016 activity	(534		)	4,892			4,358
Balance, December 31, 2016	$	1,952		$	(41,653	)	$	(39,701	)

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

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-Topic 220
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-Section 45
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+ Details

Segment and Related Information

12 Months Ended

Dec. 31, 2016

Segment Reporting [Abstract]

Segment and Related Information

Segment and Related Information:

As of December 31, 2016, the Company's operations are comprised of 5,062 stores and 127 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 Professional and DIY customers varies among the four store brands, all of the locations serve customers through similar distribution channels. The Company is implementing a 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 divisions which include the operations of the stores operating under the Advance Auto Parts, Carquest and Autopart International trade names. Each of the Advance Auto Parts geographic divisions, in addition to Worldpac, are individually considered operating segments which are aggregated into one reportable segment. Effective in the second quarter of 2016, the Company realigned its five geographic areas which included the operations of the stores operating under the Advance Auto Parts, Carquest and Autopart International trade names into three geographic divisions. As a result of this realignment the Company has reduced its number of operating segments from six to four. 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 Professional ordering platforms, are part of its integrated operating approach of serving its Professional and DIY customers. The Company's online websites allow its DIY customers to pick up merchandise at a conveniently located store location or have their purchases shipped directly to them. The majority of the Company's online DIY sales are picked up at store locations. Through the Company's online ordering platforms, Professional customers can conveniently place orders with a designated store location for delivery to their places of business or pick-up.

The following table summarizes financial information for each of the Company’s product groups for the years ended December 31, 2016, January 2, 2016 and January 3, 2015, respectively. Certain prior period amounts have been reclassified to conform to current product category classifications.



	2016		2015		2014
Percentage of Sales, by Product Group
Parts and Batteries	66	%	66	%	66	%
Accessories and Chemicals	19	%	19	%	19	%
Engine Maintenance	14	%	14	%	14	%
Other	1	%	1	%	1	%
Total	100	%	100	%	100	%

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Condensed Consolidating Financial Statements

12 Months Ended

Dec. 31, 2016

Condensed Consolidating Financial Statements [Abstract]

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"). The Non-Guarantor Subsidiaries do not qualify as minor as defined by SEC regulations. Accordingly, the Company presents below the condensed consolidating financial information for the Guarantor Subsidiaries and Non-Guarantor Subsidiaries. Investments in subsidiaries of the Company are required to be presented under the equity method, even though all such subsidiaries meet the requirements to be consolidated under GAAP.

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

The following tables present condensed consolidating balance sheets as of December 31, 2016 and January 2, 2016 and condensed consolidating statements of operations, comprehensive income and cash flows for the years ended December 31, 2016, January 2, 2016 and January 3, 2015, and should be read in conjunction with the consolidated financial statements herein.

Condensed Consolidating Balance Sheets

As of December 31, 2016



	Advance Auto Parts, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	22	$	78,543	$	56,635	$	(22	)	$	135,178
Receivables, net	—		619,229		22,023		—			641,252
Inventories, net	—		4,126,465		199,403		—			4,325,868
Other current assets	—		69,385		1,153		(72		)	70,466
Total current assets	22		4,893,622		279,214		(94		)	5,172,764
Property and equipment, net of accumulated depreciation	128		1,436,459		9,753		—			1,446,340
Goodwill	—		943,359		47,518		—			990,877
Intangible assets, net	—		595,596		45,307		—			640,903
Other assets, net	4,634		63,376		773		(4,634		)	64,149
Investment in subsidiaries	3,008,856		375,420		—		(3,384,276		)	—
Intercompany note receivable	1,048,424		—		—		(1,048,424		)	—
Due from intercompany, net	—		—		316,109		(316,109		)	—
	$	4,062,064	$	8,307,832	$	698,674	$	(4,753,537	)	$	8,315,033
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt	$	—	$	306	$	—	$	—		$	306
Accounts payable	—		2,813,937		272,240		—			3,086,177
Accrued expenses	1,505		526,652		26,312		(72		)	554,397
Other current liabilities	—		32,202		2,986		(22		)	35,166
Total current liabilities	1,505		3,373,097		301,538		(94		)	3,676,046
Long-term debt	1,042,949		—		—		—			1,042,949
Deferred income taxes	—		439,283		19,633		(4,634		)	454,282
Other long-term liabilities	—		223,481		2,083		—			225,564
Intercompany note payable	—		1,048,424		—		(1,048,424		)	—
Due to intercompany, net	101,418		214,691		—		(316,109		)	—
Commitments and contingencies

Stockholders' equity	2,916,192		3,008,856		375,420		(3,384,276		)	2,916,192
	$	4,062,064	$	8,307,832	$	698,674	$	(4,753,537	)	$	8,315,033

Condensed Consolidating Balance Sheets

As of January 2, 2016



	Advance Auto Parts, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	8	$	63,458	$	27,324	$	(8	)	$	90,782
Receivables, net	—		568,106		29,682		—			597,788
Inventories, net	—		4,009,335		165,433		—			4,174,768
Other current assets	178		78,904		1,376		(3,050		)	77,408
Total current assets	186		4,719,803		223,815		(3,058		)	4,940,746
Property and equipment, net of accumulated depreciation	154		1,425,319		9,104		—			1,434,577
Goodwill	—		943,319		46,165		—			989,484
Intangible assets, net	—		640,583		46,542		—			687,125
Other assets, net	9,500		75,025		745		(9,501		)	75,769
Investment in subsidiaries	2,523,076		302,495		—		(2,825,571		)	—
Intercompany note receivable	1,048,161		—		—		(1,048,161		)	—
Due from intercompany, net	—		—		325,077		(325,077		)	—
	$	3,581,077	$	8,106,544	$	651,448	$	(4,211,368	)	$	8,127,701
Liabilities and Stockholders' Equity
Current liabilities:
Current portion of long-term debt	$	—	$	598	$	—	$	—		$	598
Accounts payable	103		2,903,287		300,532		—			3,203,922
Accrued expenses	2,378		529,076		24,759		(3,050		)	553,163
Other current liabilities	—		36,270		3,532		(8		)	39,794
Total current liabilities	2,481		3,469,231		328,823		(3,058		)	3,797,477
Long-term debt	1,041,584		164,713		—		—			1,206,297
Deferred income taxes	—		425,094		18,332		(9,501		)	433,925
Other long-term liabilities	—		227,556		1,798		—			229,354
Intercompany note payable	—		1,048,161		—		(1,048,161		)	—
Due to intercompany, net	76,364		248,713		—		(325,077		)	—
Commitments and contingencies

Stockholders' equity	2,460,648		2,523,076		302,495		(2,825,571		)	2,460,648
	$	3,581,077	$	8,106,544	$	651,448	$	(4,211,368	)	$	8,127,701

Condensed Consolidating Statements of Operations

For Fiscal 2016



	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	9,254,477		$	556,747	$	(243,545	)	$	9,567,679
Cost of sales, including purchasing and warehousing costs	—			5,171,953			383,356		(243,545		)	5,311,764
Gross profit	—			4,082,524			173,391		—			4,255,915
Selling, general and administrative expenses	28,695			3,402,323			92,287		(54,988		)	3,468,317
Operating (loss) income	(28,695		)	680,201			81,104		54,988			787,598
Other, net:
Interest (expense) income	(52,081		)	(7,897		)	68		—			(59,910		)
Other income (expense), net	81,683			(19,558		)	4,010		(54,988		)	11,147
Total other, net	29,602			(27,455		)	4,078		(54,988		)	(48,763		)
Income before provision for income taxes	907			652,746			85,182		—			738,835
Provision for income taxes	1,588			260,155			17,470		—			279,213
(Loss) income before equity in earnings of subsidiaries	(681		)	392,591			67,712		—			459,622
Equity in earnings of subsidiaries	460,303			67,712			—		(528,015		)	—
Net income	$	459,622		$	460,303		$	67,712	$	(528,015	)	$	459,622

Condensed Consolidating Statements of Operations

For Fiscal 2015



	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	9,432,116		$	593,606		$	(288,704	)	$	9,737,018
Cost of sales, including purchasing and warehousing costs	—			5,172,938			430,012			(288,704		)	5,314,246
Gross profit	—			4,259,178			163,594			—			4,422,772
Selling, general and administrative expenses	24,186			3,536,697			93,852			(57,743		)	3,596,992
Operating (loss) income	(24,186		)	722,481			69,742			57,743			825,780
Other, net:
Interest (expense) income	(52,210		)	(13,378		)	180			—			(65,408		)
Other income (expense), net	76,987			(19,699		)	(7,029		)	(57,743		)	(7,484		)
Total other, net	24,777			(33,077		)	(6,849		)	(57,743		)	(72,892		)
Income before provision for income taxes	591			689,404			62,893			—			752,888
Provision for income taxes	1,220			268,571			9,699			—			279,490
(Loss) income before equity in earnings of subsidiaries	(629		)	420,833			53,194			—			473,398
Equity in earnings of subsidiaries	474,027			53,194			—			(527,221		)	—
Net income	$	473,398		$	474,027		$	53,194		$	(527,221	)	$	473,398

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 2016



	Advance Auto Parts, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income	$	459,622	$	460,303		$	67,712	$	(528,015	)	$	459,622
Other comprehensive income:
Changes in net unrecognized other postretirement benefit costs	—		(534		)	—		—			(534		)
Currency translation	—		—			4,892		—			4,892
Equity in other comprehensive income of subsidiaries	4,358		4,892			—		(9,250		)	—
Other comprehensive income	4,358		4,358			4,892		(9,250		)	4,358
Comprehensive income	$	463,980	$	464,661		$	72,604	$	(537,265	)	$	463,980

Condensed Consolidating Statements of Comprehensive Income

For Fiscal 2015



	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	473,398		$	474,027		$	53,194		$	(527,221	)	$	473,398
Other comprehensive loss:
Changes in net unrecognized other postretirement benefit costs	—			(445		)	—			—			(445		)
Currency translation adjustments	—			—			(31,277		)	—			(31,277		)
Equity in other comprehensive loss of subsidiaries	(31,722		)	(31,277		)	—			62,999			—
Other comprehensive loss	(31,722		)	(31,722		)	(31,277		)	62,999			(31,722		)
Comprehensive income	$	441,676		$	442,305		$	21,917		$	(464,222	)	$	441,676

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 adjustments	—			—			(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 2016



	Advance Auto Parts, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by operating activities	$	14	$	468,751		$	32,109		$	—		$	500,874
Cash flows from investing activities:
Purchases of property and equipment	—		(257,159		)	(2,400		)	—			(259,559		)
Business acquisitions, net of cash acquired	—		(4,697		)	—			—			(4,697		)
Proceeds from sales of property and equipment	—		2,210			2			—			2,212
Net cash used in investing activities	—		(259,646		)	(2,398		)	—			(262,044		)
Cash flows from financing activities:
Increase in bank overdrafts	—		(4,902		)	(657		)	(14		)	(5,573		)
Borrowings under credit facilities	—		799,600			—			—			799,600
Payments on credit facilities	—		(959,600		)	—			—			(959,600		)
Dividends paid	—		(17,738		)	—			—			(17,738		)
Proceeds from the issuance of common stock, primarily exercise of stock options	—		4,532			—			—			4,532
Tax withholdings related to the exercise of stock appreciation rights	—		(19,558		)	—			—			(19,558		)
Excess tax benefit from share-based compensation	—		22,429			—			—			22,429
Repurchase of common stock	—		(18,393		)	—			—			(18,393		)
Other	—		(390		)	—			—			(390		)
Net cash used in financing activities	—		(194,020		)	(657		)	(14		)	(194,691		)
Effect of exchange rate changes on cash	—		—			257			—			257
Net increase in cash and cash equivalents	14		15,085			29,311			(14		)	44,396
Cash and cash equivalents, beginning of period	8		63,458			27,324			(8		)	90,782
Cash and cash equivalents, end of period	$	22	$	78,543		$	56,635		$	(22	)	$	135,178

Condensed Consolidating Statements of Cash Flows

For Fiscal 2015



	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash (used in) provided by operating activities	$	(1	)	$	696,580		$	(6,937	)	$	—		$	689,642
Cash flows from investing activities:
Purchases of property and equipment	—			(232,591		)	(2,156		)	—			(234,747		)
Business acquisitions, net of cash acquired	—			(18,583		)	(306		)	—			(18,889		)
Proceeds from sales of property and equipment	—			266			4			—			270
Net cash used in investing activities	—			(250,908		)	(2,458		)	—			(253,366		)
Cash flows from financing activities:
Increase in bank overdrafts	—			(4,529		)	1,606			1			(2,922		)
Borrowings under credit facilities	—			618,300			—			—			618,300
Payments on credit facilities	—			(1,041,700		)	—			—			(1,041,700		)
Dividends paid	—			(17,649		)	—			—			(17,649		)
Proceeds from the issuance of common stock, primarily for employee stock purchase plan	—			5,174			—			—			5,174
Tax withholdings related to the exercise of stock appreciation rights	—			(13,112		)	—			—			(13,112		)
Excess tax benefit from share-based compensation	—			13,002			—			—			13,002
Repurchase of common stock	—			(6,665		)	—			—			(6,665		)
Other	—			(380		)	—			—			(380		)
Net cash (used in) provided by financing activities	—			(447,559		)	1,606			1			(445,952		)
Effect of exchange rate changes on cash	—			—			(4,213		)	—			(4,213		)
Net decrease in cash and cash equivalents	(1		)	(1,887		)	(12,002		)	1			(13,889		)
Cash and cash equivalents, beginning of period	9			65,345			39,326			(9		)	104,671
Cash and cash equivalents, end of period	$	8		$	63,458		$	27,324		$	(8	)	$	90,782

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 for employee stock purchase plan	—		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 previous business acquisition	—		(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)

12 Months Ended

Dec. 31, 2016

Quarterly Financial Information Disclosure [Abstract]

Quarterly Financial Data (Unaudited)

Quarterly Financial Data (unaudited):

The following table summarizes quarterly financial data for Fiscal 2016 and 2015:



2016	First		Second		Third		Fourth
	(16 weeks)		(12 weeks)		(12 weeks)		(12 weeks)
Net sales	$	2,979,778	$	2,256,155	$	2,248,855	$	2,082,891
Gross profit	1,349,889		1,010,257		988,205		907,564
Net income	158,813		124,600		113,844		62,365

Basic earnings per common share	2.16		1.69		1.54		0.84
Diluted earnings per common share	2.14		1.68		1.53		0.84

2015	First		Second		Third		Fourth
	(16 weeks)		(12 weeks)		(12 weeks)		(12 weeks)
Net sales	$	3,038,233	$	2,370,037	$	2,295,203	$	2,033,545
Gross profit	1,393,924		1,087,289		1,032,387		909,172
Net income	148,112		149,998		120,469		54,819

Basic earnings per common share	2.02		2.04		1.64		0.75
Diluted earnings per common share	2.00		2.03		1.63		0.74

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

12 Months Ended

Dec. 31, 2016

Valuation and Qualifying Accounts [Abstract]

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				Balance at End of Period
January 3, 2015	$	13,295	$	17,182	$	(14,325	)	⁽¹⁾	$	16,152
January 2, 2016	16,152		22,067		(12,461		)	⁽¹⁾	25,758
December 31, 2016	25,758		24,597		(21,191		)	⁽¹⁾	29,164


⁽¹⁾	Accounts written off during the period. These amounts did not impact the Company’s statement of operations for any year presented.

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)

12 Months Ended

Dec. 31, 2016

Accounting Policies [Abstract]

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 December 31, 2016, the Company's operations are comprised of 5,062 stores and 127 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." In addition, we served approximately 1,250 independently-owned Carquest branded stores across these locations in addition to Mexico, the Bahamas, Turks and Caicos, the British Virgin Islands and the Pacific Islands as of December 31, 2016. As further described in Note 3, Acquisitions, 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 Professional, 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 Professional customers’ places of business, including independent garages, service stations and auto dealers, utilizing a fleet of vehicles to deliver product from its 4,501 store and branch locations with delivery service.

Accounting Period

The Company’s fiscal year ends on the Saturday nearest the end of December. Fiscal years 2016 and 2015 each contained 52 weeks, while fiscal 2014 contained 53 weeks. The additional week of operations for fiscal 2014 was included in the Company's fourth quarter. All references herein for the years 2016, 2015 and 2014 represent the fiscal years ended December 31, 2016, January 2, 2016 and January 3, 2015, 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 in less than four business days. Credit and debit card receivables included in Cash and cash equivalents as of December 31, 2016 and January 2, 2016 were $26,480 and $37,906, 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 $13,124 and $18,584 are included in Other current liabilities as of December 31, 2016 and January 2, 2016, respectively.

Receivables

Receivables, net consist primarily of receivables from Professional customers and vendors. The Company grants credit to certain Professional 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 Professional 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 and volume purchase rebates. 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 2016 and prior years.

Vendor Incentives

The Company receives incentives in the form of reductions to amounts owed to and/or payments from vendors related to 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). 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 allowances that do not meet the requirements for offsetting in SG&A are recorded initially as a reduction to inventory as they are earned based on inventory purchases and reduce cost of sales as the inventory is sold. Total deferred vendor incentives included as a reduction of Inventory was $211,072 and $210,674 as of December 31, 2016 and January 2, 2016, 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 qualifying vendor promotional funds, was $97,003, $108,827 and $96,463 in 2016, 2015 and 2014, respectively. Vendor promotional funds, which reduced advertising expense, amounted to $29,308 and $17,530 and $21,814 in 2016, 2015 and 2014, 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.

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

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 Professional 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, sales incentives 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 December 31, 2016 and January 2, 2016.

Share-Based Payments

The Company provides share-based compensation to its eligible 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.

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. Losses from foreign currency transactions, which are included in Other income, net, were $7,430 during 2015. Gains and losses from foreign currency transactions were not significant in 2016 or 2014.

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) and the net unrealized gain associated with the Company's postretirement benefit plan.

Goodwill and Other Intangible Assets

The Company records goodwill equal to the excess of the purchase price over the fair value of identifiable net assets acquired in business combinations. 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. 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

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 units. 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 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. 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 $76,358 and $70,802 as of December 31, 2016 and January 2, 2016, respectively. In addition to minimum fixed rental payments, some leases provide for contingent facility rentals. 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, or at fair value at acquisition if acquired through a business combination, less accumulated depreciation. 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 Facility 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. In addition, the Company is consolidating certain locations as part of its planned integration of GPI. Expenses accrued pertaining to closed facility exit activities are included in the Company’s closed facility 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 facility 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 facility 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 facility 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 if the disposal represents a strategic shift that has (or will have) a major effect on the Company's operations and financial results.

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
•	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;
•	Inventory shrinkage;
•	Defective merchandise and warranty costs;
•	Costs associated with operating our distribution
	network, including payroll and benefit costs,
	occupancy costs and depreciation; and
•	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

Cost of Sales and Selling, General and Administrative Expenses

The following table identifies the primary costs classified in each major expense category:



				SG&A
				•	Payroll and benefit costs for store and corporate
					Team Members;
				•	Occupancy costs of store and corporate facilities;
				•	Depreciation and amortization related to store and
					corporate assets;
				•	Advertising;
				•	Costs associated with our Professional delivery
					program, including payroll and benefit costs,
					and transportation expenses associated with moving
					merchandise inventories from our stores and branches to
					our customer locations;
				•	Self-insurance costs;
				•	Professional services;
				•	Other administrative costs, such as credit card
					service fees, supplies, travel and lodging;
				•	Closed facility expense;
				•	Impairment charges; and
				•	GPI integration costs.

New Accounting Pronouncements