About Advance Auto Parts

Advance Auto Parts, Inc. operates as an automotive aftermarket parts provider in North America, serving both professional installers (professional) and ‘do-it-yourself’ (DIY) customers, as well as independently owned operators. The company’s stores and branches offer a broad selection of brand names, original equipment manufacturer (OEM) and owned brand automotive replacement parts, accessories, batteries and maintenance items for domestic and imported cars, vans, sport utility vehicles, and light and heavy duty trucks. The company operates stores and branches primarily under the trade names ‘Advance Auto Parts,’ ‘Carquest’, and ‘Worldpac.’ Stores and Branches Through the company’s integrated operating approach, the company serves its professional and DIY customers through a variety of channels ranging from traditional ‘brick and mortar’ store locations to self-service e-commerce sites. The company is better able to meet its customers’ needs by operating under several trade names, which are as follows: Advance Auto Parts — The company’s stores are generally located in freestanding buildings with a focus on both professional and DIY customers. The average size of an Advance Auto Parts store is approximately 7,800 square feet. These stores carry a wide variety of products serving aftermarket auto part needs for both domestic and import vehicles. The company’s Advance Auto Parts stores carry a product offering of approximately 23,000 stock keeping units (‘SKUs’), consisting of a custom mix of products based on each store’s unique market. Supplementing the company’s stores’ inventory on-hand, less common SKUs are also available on a same-day or next-day basis from any of the company’s larger hub stores. Carquest — The company’s stores are generally located in freestanding buildings with a primary focus on professional customers, but also serve DIY customers. The average size of a Carquest store is approximately 7,300 square feet. These stores carry a wide variety of products serving the aftermarket auto part needs for both domestic and import vehicles with a product offering of approximately 25,000 SKUs. As of December 31, 2022, Carquest also served independently owned stores that operate under the Carquest name. Worldpac — The company’s branches that are branded Autopart International (‘AI’) principally serve professional customers utilizing an efficient and sophisticated online ordering and fulfillment system. Worldpac’s branches are generally larger than the company’s other store locations, averaging approximately 18,400 square feet. Worldpac’s complete product offering includes over 285,000 SKUs for domestic and import vehicles and specializes in imported OEM parts. As part of the company’s transformation efforts through December 31, 2022, the company converted all AI stores into the Worldpac technology format. Store Development The company’s stores and branches are located in 48 U.S. states and two U.S. territories, as well as located in nine Canadian provinces. Products The following shows some of the types of products that the company sells by major category: Parts & Batteries: Batteries and battery accessories; belts and hoses; brakes and brake pads; chassis parts; climate control parts; clutches and drive shafts; engines and engine parts; exhaust systems and parts; hub assemblies; ignition components and wire; radiators and cooling parts; starters and alternators; and steering and alignment parts. Accessories & Chemicals: Air conditioning chemicals and accessories; air fresheners; antifreeze and washer fluid; electrical wire and fuses; electronics; floor mats, seat covers and interior accessories; hand and specialty tools; lighting; performance parts; sealants, adhesives and compounds; tire repair accessories; vent shades, mirrors and exterior accessories; washes, waxes and cleaning supplies; and wiper blades. Engine Maintenance: Air filters; fuel and oil additives; fuel filters; grease and lubricants; motor oil; oil filters; part cleaners and treatments; and transmission fluid. Customers The company’s professional customers consist primarily of customers for whom the company delivers products from its store or branch locations to their places of business, including garages, service stations and auto dealers. The company also serves independently owned Carquest stores with shipments directly from the company’s distribution centers. The company’s DIY customers are primarily served through the company’s stores, but can also order online to pick up merchandise at a conveniently located store or have their purchases shipped directly to them. Except where prohibited, the company also provides a variety of services at its stores free of charge to the company’s customers, including battery and wiper installation; check engine light scanning; electrical system testing, including batteries, starters and alternators; oil and battery recycling; and loaner tool programs. The company also serves its customers online at www.AdvanceAutoParts.com or on the company’s Advance Mobile App. The company’s professional customers can conveniently place their orders electronically, including through MyAdvance.com and Technet, by phone or in-store, and the company delivers products from its stores or branch locations to their places of business. Supply Chain The company’s supply chain consists of a network of distribution centers, hubs, stores, and branches that enable the company to provide same-day or next-day availability to the company’s customers. As of December 31, 2022, the company operated 50 distribution centers, ranging in size from approximately 57,000 to 943,000 square feet with total square footage of approximately 12.6 million, including one distribution center dedicated to reclamations. Merchandise, Marketing and Advertising In 2022, the company purchased merchandise from over 1,400 vendors, with no single vendor accounting for more than 10% of purchases. Some of the company’s brands include Bosch, Castrol, Dayco, Denso, Fram, Gates, Meguiar’s, Mobil 1, Moog, Monroe, NGK, Prestone, Purolator, Trico and Wagner. In addition to these branded products, the company stocks a wide selection of high-quality owned brand products with an intention of appealing to value-conscious customers. These categories of merchandise include chemicals, interior automotive accessories, batteries and parts under various owned brand names, such as Autopart International, Carquest, DieHard, Driveworks and Wearever. For the DieHard brand, the company owns the right to sell batteries and to extend the DieHard brand into other automotive and vehicular categories. The company granted the seller an exclusive royalty-free, perpetual license to develop, market and sell DieHard branded products in certain non-automotive categories. Seasonality The company’s business is somewhat seasonal in nature, with the highest sales usually occurring in the spring and summer months. The company’s fourth quarter (year ended December 2022) is generally its most volatile as weather and spending trade-offs typically influence the company’s professional and DIY sales. Intellectual Property The company owns a number of trade names, service marks and trademarks, including ‘Advance Auto Parts,’ ‘Advance Same Day,’ ‘Autopart International,’ ‘Carquest,’ ‘CARQUEST Technical Institute,’ ‘DieHard,’ ‘DriverSide,’ ‘MotoLogic,’ ‘MotoShop,’ ‘speedDIAL,’ ‘TECH-NET Professional Auto Service’ and ‘Worldpac’ for use in connection with the automotive parts business. In addition, the company owns and has registered a number of trademarks for the company’s owned brands. Environmental and Other Regulatory Matters The company receives notices from the U.S. Environmental Protection Agency and state environmental authorities indicating that there may be contamination on properties the company owns, leases, or operates or may have owned, leased or operated in the past or on adjacent properties for which the company may be responsible. Competition The company’s primary competitors are both national and regional chains of automotive parts stores, including AutoZone, Inc., NAPA, O’Reilly Automotive, Inc., The Pep Boys-Manny, Moe & Jack and Auto Plus. History Advance Auto Parts, Inc. was founded in 1929. The company, a Delaware corporation, was incorporated in 2001.