Jim Wade: On an overall basis, that’s a correct assumption. We’ve always said that we haven’t set a target for commercial to be X percent of our business. We’ve allowed the customers to decide that for us and we’ve driven the business. As we look out, certainly the same types of trends we’ve seen over the past few years probably will still be the case where commercial will grow faster, and as it grows faster our intent is to still grow DIY, but the combination of those two will likely result in commercial being a total percentage higher than it is today.

Gary Balter (Credit Suisse): You mentioned already that you’re running low single-digit comps for last quarter. Gas pricing is going back up. What are your assumptions about where gas is going to go, and how important from our side should we be thinking about the impact of gas pricing on your potential to improve comps in the second half of the year?

Jim Wade: As far as where gas price is going to go, we unfortunately don’t know the answer to that. Certainly gas prices have gone up very rapidly over the last few weeks and months, and they are at a high level although they aren’t significantly different at this point than they were this time last year. What has happened over the last several weeks is just the fact that they’ve gone up at a very rapid rate has certainly had some impact.

Certainly we would prefer to see gas prices lower, but they are going to be what they are going to be, and within our business, the comments that we’ve made in the past are still true that customers that shop auto parts stores still have to have the parts that they have to have to operate their cars. Within our business trends, we continued to see the categories that are most non-discretionary, things like batteries are the ones that are typically the strongest because the customers still have to replace those types of things.

Matthew Fassler (Goldman Sachs): Could you comment on the LIFO front? There’s sometimes some confusion when there’s a significant increase in the LIFO credit. Should we think of that as being incremental year-to-year $8 million benefit to earnings, or is that oversimplifying the impact of LIFO?

Michael Moore: On a year-to-year basis, it improved by about 50 basis points over last year, about $7 million over last year. But it’s a result of working with our suppliers, lowering our procurement costs, and since we’re on LIFO accounting, we get a benefit to those lower costs as we put them in place. This will continue to be a benefit because our costs are lower and they will be lower going throughout the year.

Nancy Hoch (J.P. Morgan): The cash deployment is consistent with the back half of last year, it looks like you’ve decided to forgo on share repurchases to focus on debt paydown. Do you have specific financial targets in mind that you’re waiting to hit before you return to a repurchase program, or do you see a more balanced program moving forward?

Michael Moore: Over the last 2 1/2 years, we’ve repurchased over 12 million shares. In 2006, we repurchased over 3.7 million shares. This is a capital policy that the Board continually looks at and we will continue to look at it in the future.

Nancy Hoch: You laid out some opportunities for near-term cost-cutting. Longer term, are there opportunities specifically to take costs out of the stores, whether it’s through labor optimization, or do you feel like you’re at a near-optimal point right now?

Michael Moore: We are reviewing our entire business model, and we think there are elements of that business model that we can further refine and take further costs out of the model. We are looking at all of those elements that are not valued by the customer.

Nancy Hoch: On the acquisition forefront, there has been a lot of discussion in the DIY space. Focusing on the commercial side, what does the market look like right now in terms of opportunities to grow AI maybe a little more aggressively through acquisition?

Jim Wade: That’s something we continue to look at from AI’s standpoint, and we did make one small acquisition in the first quarter. It was just a couple of stores, but part of our program there at AI is to develop that model in such a way that we can use it as an opportunity to do some of the roll-up of other commercial providers out there. As the year goes by we will be able to talk more about that and demonstrate what we can do there. But one of the first things we needed to get through with AI was getting into a facility from a distribution standpoint that would support some more growth, and the good news is we have that behind us and what we’re seeing is very positive, so we want to look at acquisitions as part of their growth strategy.

Bill Sims (Citigroup): You commented that inventory might go up associated with the increase in hard parts availability. Can you talk about the working capital impact? Is there any opportunity to improve your payables to offset that increased inventory?

Jim Wade: Yes, absolutely. As we increase the inventory, we expect that our accounts payables ratio will improve.

Jeff Sonnek (FBR): With respect to the remodel program, you said you were achieving something like 40% reduction in the $100,000 range per store. Is that correct? If it is, where are you getting those savings specifically?

Michael Moore: Historically, we’ve spent more than $150,000 per remodel, and we’ve been able to reduce that to less than $90,000 per remodel today. We are in the process of rolling out our reduced scope remodels over the last 30 days. What we did is we looked at all elements of the scope of the remodel, and we identified those elements that were important to the customer, such as exterior signage and interior signage, which did a better job of branding our store, upgraded lighting, and floor resets. But there were some elements of the remodels where we were moving counters that we didn’t believe were leading to incremental sales and those are the elements that we eliminated.

Jeffrey Sonnek: You talked about the weakness due to poor weather and the ramp in gas in February and March. Can you talk about what was going on then that seemed to improve things, in customers’ eyes?

Jim Wade: We tend to see the month of April probably as the exception, rather than February and March. In the last three weeks, our trends have been back in line with what we saw in February and March, which was better than April and better than our results for the entire first quarter as a whole. It’s early and time will tell, but we, like so many other retailers, saw business being very tough in April.

Jeffrey Sonnek: Regarding advertising, it’s fairly clear that you spend a little bit more than some of your competition. Are there obvious areas here that you have targeted where we may see some of those savings come from?

Michael Moore: We are doing a complete review of our entire advertising and marketing spend. As we go through that process, we expect to identify elements that we can rechallenge or refocus how we’re spending our dollars.