Condensed Consolidating Financial Statements

Certain 100% wholly-owned domestic subsidiaries of Advance, including its Material Subsidiaries (as defined in the 2017 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 Company presents below the condensed consolidating financial information for the Guarantor Subsidiaries and Non-Guarantor Subsidiaries. Investments in subsidiaries of the Company are presented under the equity method in the condensed consolidating financial statements.

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.

Condensed Consolidating Balance Sheets (Unaudited)

As of April 22, 2017



	Advance Auto Parts, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	22	$	87,644	$	38,443	$	(22	)	$	126,087
Receivables, net	—		647,480		35,544		—			683,024
Inventories	—		4,218,338		195,465		—			4,413,803
Other current assets	179		82,726		1,133		(259		)	83,779
Total current assets	201		5,036,188		270,585		(281		)	5,306,693
Property and equipment, net of accumulated depreciation	120		1,430,216		9,285		—			1,439,621
Goodwill	—		943,359		47,336		—			990,695
Intangible assets, net	—		582,594		44,380		—			626,974
Other assets, net	4,513		64,053		621		(4,513		)	64,674
Investment in subsidiaries	3,121,169		390,370		—		(3,511,539		)	—
Intercompany note receivable	1,048,508		—		—		(1,048,508		)	—
Due from intercompany, net	—		—		319,244		(319,244		)	—
	$	4,174,511	$	8,446,780	$	691,451	$	(4,884,085	)	$	8,428,657
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	35	$	2,795,980	$	253,203	$	—		$	3,049,218
Accrued expenses	2,000		540,074		21,461		(259		)	563,276
Other current liabilities	—		42,307		4,852		(22		)	47,137
Total current liabilities	2,035		3,378,361		279,516		(281		)	3,659,631
Long-term debt	1,043,372		30,000		—		—			1,073,372
Deferred income taxes	—		431,097		19,544		(4,513		)	446,128
Other long-term liabilities	—		223,830		2,021		—			225,851
Intercompany note payable	—		1,048,508		—		(1,048,508		)	—
Due to intercompany, net	105,429		213,815		—		(319,244		)	—
Commitments and contingencies

Stockholders' equity	3,023,675		3,121,169		390,370		(3,511,539		)	3,023,675
	$	4,174,511	$	8,446,780	$	691,451	$	(4,884,085	)	$	8,428,657

Condensed Consolidating Balance Sheets (Unaudited)

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	—		4,126,465		199,403		—			4,325,868
Other current assets	—		69,385		1,153		(72		)	70,466
Total current assets	22		4,893,622		279,214		(94		)	5,172,764
Property and equipment, net of accumulated depreciation	128		1,436,459		9,753		—			1,446,340
Goodwill	—		943,359		47,518		—			990,877
Intangible assets, net	—		595,596		45,307		—			640,903
Other assets, net	4,634		63,376		773		(4,634		)	64,149
Investment in subsidiaries	3,008,856		375,420		—		(3,384,276		)	—
Intercompany note receivable	1,048,424		—		—		(1,048,424		)	—
Due from intercompany, net	—		—		316,109		(316,109		)	—
	$	4,062,064	$	8,307,832	$	698,674	$	(4,753,537	)	$	8,315,033
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	—	$	2,813,937	$	272,240	$	—		$	3,086,177
Accrued expenses	1,505		526,652		26,312		(72		)	554,397
Other current liabilities	—		32,508		2,986		(22		)	35,472
Total current liabilities	1,505		3,373,097		301,538		(94		)	3,676,046
Long-term debt	1,042,949		—		—		—			1,042,949
Deferred income taxes	—		439,283		19,633		(4,634		)	454,282
Other long-term liabilities	—		223,481		2,083		—			225,564
Intercompany note payable	—		1,048,424		—		(1,048,424		)	—
Due to intercompany, net	101,418		214,691		—		(316,109		)	—
Commitments and contingencies

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

Condensed Consolidating Statements of Operations (Unaudited)

For the Sixteen weeks ended April 22, 2017



	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	2,801,854		$	172,004		$	(83,020	)	$	2,890,838
Cost of sales, including purchasing and warehousing costs	—			1,577,273			125,901			(83,020		)	1,620,154
Gross profit	—			1,224,581			46,103			—			1,270,684
Selling, general and administrative expenses	14,797			1,067,656			24,402			(15,951		)	1,090,904
Operating (loss) income	(14,797		)	156,925			21,701			15,951			179,780
Other, net:
Interest (expense) income	(16,290		)	(2,159		)	19			—			(18,430		)
Other income (expense), net	31,784			(7,352		)	(3,668		)	(15,951		)	4,813
Total other, net	15,494			(9,511		)	(3,649		)	(15,951		)	(13,617		)
Income before provision for income taxes	697			147,414			18,052			—			166,163
(Benefit) provision for income taxes	(1,743		)	57,446			2,500			—			58,203
Income before equity in earnings of subsidiaries	2,440			89,968			15,552			—			107,960
Equity in earnings of subsidiaries	105,520			15,552			—			(121,072		)	—
Net income	$	107,960		$	105,520		$	15,552		$	(121,072	)	$	107,960

Condensed Consolidating Statements of Operations (Unaudited)

For the Sixteen weeks ended April 23, 2016



	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net sales	$	—		$	2,892,386		$	188,975	$	(101,583	)	$	2,979,778
Cost of sales, including purchasing and warehousing costs	—			1,598,817			132,655		(101,583		)	1,629,889
Gross profit	—			1,293,569			56,320		—			1,349,889
Selling, general and administrative expenses	7,911			1,060,767			28,358		(18,146		)	1,078,890
Operating (loss) income	(7,911		)	232,802			27,962		18,146			270,999
Other, net:
Interest (expense) income	(16,143		)	(2,823		)	23		—			(18,943		)
Other income (expense), net	23,542			(6,276		)	4,003		(18,146		)	3,123
Total other, net	7,399			(9,099		)	4,026		(18,146		)	(15,820		)
(Loss) income before provision for income taxes	(512		)	223,703			31,988		—			255,179
(Benefit) provision for income taxes	(1,430		)	91,275			6,521		—			96,366
Income before equity in earnings of subsidiaries	918			132,428			25,467		—			158,813
Equity in earnings of subsidiaries	157,895			25,467			—		(183,362		)	—
Net income	$	158,813		$	157,895		$	25,467	$	(183,362	)	$	158,813

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the Sixteen Weeks ended April 22, 2017



	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	107,960		$	105,520		$	15,552		$	(121,072	)	$	107,960
Other comprehensive loss	(873		)	(873		)	(788		)	1,661			(873		)
Comprehensive income	$	107,087		$	104,647		$	14,764		$	(119,411	)	$	107,087

Condensed Consolidating Statements of Comprehensive Income (Unaudited)

For the Sixteen Weeks ended April 23, 2016



	Advance Auto Parts, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Net income	$	158,813	$	157,895	$	25,467	$	(183,362	)	$	158,813
Other comprehensive income	16,243		16,243		16,425		(32,668		)	16,243
Comprehensive income	$	175,056	$	174,138	$	41,892	$	(216,030	)	$	175,056

Condensed Consolidating Statements of Cash Flows (Unaudited)

For the Sixteen weeks ended April 22, 2017



	Advance Auto Parts, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	—	$	55,378		$	(20,297	)	$	—		$	35,081
Cash flows from investing activities:
Purchases of property and equipment	—		(64,978		)	(301		)	—			(65,279		)
Proceeds from sales of property and equipment	—		947			—			—			947
Other, net	—		(253		)	446			—			193
Net cash (used in) provided by investing activities	—		(64,284		)	145			—			(64,139		)
Cash flows from financing activities:
Increase in bank overdrafts	—		6,625			1,865			—			8,490
Borrowings under credit facilities	—		483,500			—			—			483,500
Payments on credit facilities	—		(453,500		)	—			—			(453,500		)
Dividends paid	—		(8,902		)	—			—			(8,902		)
Proceeds from the issuance of common stock	—		1,036			—			—			1,036
Tax withholdings related to the exercise of stock appreciation rights	—		(5,707		)	—			—			(5,707		)
Repurchase of common stock	—		(3,121		)	—			—			(3,121		)
Other, net	—		(1,924		)	—			—			(1,924		)
Net cash provided by financing activities	—		18,007			1,865			—			19,872
Effect of exchange rate changes on cash	—		—			95			—			95
Net increase (decrease) in cash and cash equivalents	—		9,101			(18,192		)	—			(9,091		)
Cash and cash equivalents, beginning of period	22		78,543			56,635			(22		)	135,178
Cash and cash equivalents, end of period	$	22	$	87,644		$	38,443		$	(22	)	$	126,087

Condensed Consolidating Statements of Cash Flows (Unaudited)

For the Sixteen weeks ended April 23, 2016



	Advance Auto Parts, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	—	$	89,349		$	(903	)	$	—		$	88,446
Cash flows from investing activities:
Purchases of property and equipment	—		(88,303		)	(835		)	—			(89,138		)
Proceeds from sales of property and equipment	—		1,226			1			—			1,227
Net cash used in investing activities	—		(87,077		)	(834		)	—			(87,911		)
Cash flows from financing activities:
Increase in bank overdrafts	—		7,670			6,974			—			14,644
Borrowings under credit facilities	—		357,500			—			—			357,500
Payments on credit facilities	—		(331,500		)	—			—			(331,500		)
Dividends paid	—		(8,850		)	—			—			(8,850		)
Proceeds from the issuance of common stock	—		1,085			—			—			1,085
Tax withholdings related to the exercise of stock appreciation rights	—		(11,134		)	—			—			(11,134		)
Repurchase of common stock	—		(11,813		)	—			—			(11,813		)
Other, net	—		(125		)	—			—			(125		)
Net cash provided by financing activities	—		2,833			6,974			—			9,807
Effect of exchange rate changes on cash	—		—			2,584			—			2,584
Net increase in cash and cash equivalents	—		5,105			7,821			—			12,926
Cash and cash equivalents, beginning of period	8		63,458			27,324			(8		)	90,782
Cash and cash equivalents, end of period	$	8	$	68,563		$	35,145		$	(8	)	$	103,708