Condensed Consolidating Financial Statements

Certain 100% wholly owned domestic subsidiaries of Advance, including our Material Subsidiaries (as defined in the 2017 Credit Agreement) serve as guarantors (“Guarantor Subsidiaries”) of our senior unsecured notes. The subsidiary guarantees related to our 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 our wholly owned subsidiaries, including all of its foreign subsidiaries, do not serve as guarantors of our senior unsecured notes (“Non-Guarantor Subsidiaries”).

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. Investments in subsidiaries of Advance are presented under the equity method. 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 Sheet

As of April 21, 2018



(in thousands)	Advance Auto Parts, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries			Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	23	$	566,915	$	72,228		$	(23	)	$	639,143
Receivables, net	—		581,914		38,464			—			620,378
Inventories	—		4,054,181		176,292			—			4,230,473
Other current assets	—		124,909		2,715			(102		)	127,522
Total current assets	23		5,327,919		289,699			(125		)	5,617,516
Property and equipment, net of accumulated depreciation	95		1,348,844		9,458			—			1,358,397
Goodwill	—		943,359		50,102			—			993,461
Intangible assets, net	—		538,939		44,407			—			583,346
Other assets, net	3,177		61,744		489			(3,177		)	62,233
Investment in subsidiaries	3,661,050		457,062		—			(4,118,112		)	—
Intercompany note receivable	1,048,789		—		—			(1,048,789		)	—
Due from intercompany, net	—		—		305,689			(305,689		)	—
	$	4,713,134	$	8,677,867	$	699,844		$	(5,475,892	)	$	8,614,953
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	—	$	2,680,822	$	209,495		$	—		$	2,890,317
Accrued expenses	1,746		526,215		15,484			(102		)	543,343
Other current liabilities	—		47,722		(1,220		)	(23		)	46,479
Total current liabilities	1,746		3,254,759		223,759			(125		)	3,480,139
Long-term debt	1,044,755		—		—			—			1,044,755
Deferred income taxes	—		296,295		17,568			(3,177		)	310,686
Other long-term liabilities	—		231,297		1,455			—			232,752
Intercompany note payable	—		1,048,789		—			(1,048,789		)	—
Due to intercompany, net	120,012		185,677		—			(305,689		)	—
Commitments and contingencies
Stockholders' equity	3,546,621		3,661,050		457,062			(4,118,112		)	3,546,621
	$	4,713,134	$	8,677,867	$	699,844		$	(5,475,892	)	$	8,614,953

Condensed Consolidating Balance Sheet

As of December 30, 2017



(in thousands)	Advance Auto Parts, Inc.		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations			Consolidated
Assets
Current assets:
Cash and cash equivalents	$	23	$	482,620	$	64,317	$	(23	)	$	546,937
Receivables, net	—		567,460		38,897		—			606,357
Inventories	—		3,986,724		181,768		—			4,168,492
Other current assets	—		103,118		2,063		(75		)	105,106
Total current assets	23		5,139,922		287,045		(98		)	5,426,892
Property and equipment, net of accumulated depreciation	103		1,384,115		9,920		—			1,394,138
Goodwill	—		943,359		50,934		—			994,293
Intangible assets, net	—		551,781		45,893		—			597,674
Other assets, net	3,224		68,749		554		(3,223		)	69,304
Investment in subsidiaries	3,521,330		448,462		—		(3,969,792		)	—
Intercompany note receivable	1,048,700		—		—		(1,048,700		)	—
Due from intercompany, net	—		—		332,467		(332,467		)	—
	$	4,573,380	$	8,536,388	$	726,813	$	(5,354,280	)	$	8,482,301
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable	$	—	$	2,657,792	$	236,790	$	—		$	2,894,582
Accrued expenses	1,134		511,841		20,648		(75		)	533,548
Other current liabilities	—		50,963		1,027		(23		)	51,967
Total current liabilities	1,134		3,220,596		258,465		(98		)	3,480,097
Long-term debt	1,044,327		—		—		—			1,044,327
Deferred income taxes	—		288,999		17,844		(3,223		)	303,620
Other long-term liabilities	—		237,019		2,042		—			239,061
Intercompany note payable	—		1,048,700		—		(1,048,700		)	—
Due to intercompany, net	112,723		219,744		—		(332,467		)	—
Commitments and contingencies
Stockholders' equity	3,415,196		3,521,330		448,462		(3,969,792		)	3,415,196
	$	4,573,380	$	8,536,388	$	726,813	$	(5,354,280	)	$	8,482,301

Condensed Consolidating Statement of Operations

For the Sixteen Weeks Ended April 21, 2018



(in thousands)	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net sales	$	—		$	2,775,903		$	152,119		$	(54,174	)	$	2,873,848
Cost of sales, including purchasing and warehousing costs	—			1,551,041			104,697			(54,174		)	1,601,564
Gross profit	—			1,224,862			47,422			—			1,272,284
Selling, general and administrative expenses	4,811			1,054,389			30,582			(15,739		)	1,074,043
Operating (loss) income	(4,811		)	170,473			16,840			15,739			198,241
Other, net:
Interest expense	(16,078		)	(1,604		)	—			—			(17,682		)
Other income (expense), net	21,257			(2,993		)	(2,067		)	(15,739		)	458
Total other, net	5,179			(4,597		)	(2,067		)	(15,739		)	(17,224		)
Income before provision for income taxes	368			165,876			14,773			—			181,017
Provision for income taxes	1,263			40,452			2,575			—			44,290
(Loss) income before equity in earnings of subsidiaries	(895		)	125,424			12,198			—			136,727
Equity in earnings of subsidiaries	137,622			12,198			—			(149,820		)	—
Net income	$	136,727		$	137,622		$	12,198		$	(149,820	)	$	136,727

Condensed Consolidating Statement of Operations

For the Sixteen Weeks Ended April 22, 2017



(in thousands)	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 Statement of Comprehensive Income

For the Sixteen Weeks Ended April 21, 2018



(in thousands)	Advance Auto Parts, Inc.			Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net income	$	136,727		$	137,622		$	12,198		$	(149,820	)	$	136,727
Other comprehensive loss	(3,858		)	(3,858		)	(3,767		)	7,625			(3,858		)
Comprehensive income	$	132,869		$	133,764		$	8,431		$	(142,195	)	$	132,869

Condensed Consolidating Statement of Comprehensive Income

For the Sixteen Weeks Ended April 22, 2017



(in thousands)	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 Statement of Cash Flows

For the Sixteen Weeks Ended April 21, 2018



(in thousands)	Advance Auto Parts, Inc.		Guarantor Subsidiaries			Non-Guarantor Subsidiaries			Eliminations			Consolidated
Net cash provided by (used in) operating activities	$	—	$	142,408		$	11,562		$	—		$	153,970
Cash flows from investing activities:
Purchases of property and equipment	—		(34,153		)	(321		)	—			(34,474		)
Proceeds from sales of property and equipment	—		486			44			—			530
Net cash used in investing activities	—		(33,667		)	(277		)	—			(33,944		)
Cash flows from financing activities:
Decrease in bank overdrafts	—		(9,790		)	(2,311		)	—			(12,101		)
Dividends paid	—		(8,930		)	—			—			(8,930		)
Proceeds from the issuance of common stock	—		754			—			—			754
Tax withholdings related to the exercise of stock appreciation rights	—		(93		)	—			—			(93		)
Repurchase of common stock	—		(5,223		)	—			—			(5,223		)
Other, net	—		(1,164		)	—			—			(1,164		)
Net cash used in financing activities	—		(24,446		)	(2,311		)	—			(26,757		)
Effect of exchange rate changes on cash	—		—			(1,063		)	—			(1,063		)
Net increase in cash and cash equivalents	—		84,295			7,911			—			92,206
Cash and cash equivalents, beginning of period	23		482,620			64,317			(23		)	546,937
Cash and cash equivalents, end of period	$	23	$	566,915		$	72,228		$	(23	)	$	639,143

Condensed Consolidating Statement of Cash Flows

For the Sixteen Weeks Ended April 22, 2017



(In thousands)	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