Jack Brouillard: The work the company is doing in reducing the advertising, does not have much bearing on telling the customers about parts availability. The TV network and the store addressed only the people who are already in the store, and the company is finding that it has opportunities in the print side which was not driving that business either.

Jeffrey Sonnek (Friedman, Billings, Ramsey & Co., Inc.): Could you quantify these expense savings and the order of magnitude where advertising falls versus the headcounts reductions?

Jim L. Wade: The biggest impact in the advertising area for this $50 million of cuts for next year was around the Advance TV. That was one of the bigger items within the list, and it is $7 million to $8 million on an annual basis. The remainder of the items was all equal to or lower than that number, and that was the only significant large number that came out of the advertising by itself.

Matthew J. Fassler (Goldman Sachs): To what degree, through timing or through the area of weakness, have you been able to essentially tie the slow down to potential disruptions from steps that you have taken to make changes in the business?

Jack Brouillard: The company has had a CEO change and there is always some potential disruption with that. Advance Auto Parts operates in a variety of geographies, but some concentrations are different at O''Reilly and other places. Commercial is 25% of the business and that has been better than the DIY. The stores are being well maintained and well led and well executed, and this week it has turned and business is good this week.

Matthew J. Fassler (Goldman Sachs): There has been management transition. Is the company looking for a permanent CEO?

Jack Brouillard: The company continues to have its search process for a permanent CEO. Russell Reynolds is working closely on the search and is tracking on progress.

Matthew J. Fassler (Goldman Sachs): The changes that you are making are significant. How have you weighed the magnitude of the changes that you want to make to the business versus the fact that you will have a successor at some point who will want to put own stamp on the business?

Jack Brouillard: The company is addressing the issues in a way that would not be adverse to the decisions a new CEO would make.

Danielle E. Fox (Merrill Lynch): Have you made or contemplated as part of the strategic review any changes to the compensation structure either at the manager or the store associate level?

Jack Brouillard: That is all under evaluation at this point. The company can not give any details, but it isopen to developing new scenarios and testing them and see if they are good for the business and for the team members.

Danielle E. Fox (Merrill Lynch): What are your sources in terms of gross margin expansion this quarter and whether pricing is contributing at all to the gross margin expansion?

Elwyn G. Murray III: The company has enjoyed 400 basis points of improvement in its gross margin over the past five years. While it continues to expect further progress there, particularly as it continues to work with cost of goods reduction side, it wants to ensure that it is priced right and where it needs to be in the marketplace on the parts of the business that matter most. The company is going to be pushing for the cost of goods and ensuring that it is where it needs to be in the market. Given the rapid growth it has enjoyed over the last five years, it thinks that rate of growth may slow, but it continues to see progress there expected.

Danielle E. Fox (Merrill Lynch): What do you see as major points of differentiation once you have successfully executed on the plan?

Elwyn G. Murray III: The company is convinced after the strategy work it has done on things like parts availability, nozzle parts, pros and individuals in its stores, parts quality, convenience and speed of delivery all things will improve. While it has arguably fixated on the front room or areas that have not meant as much, it feels like it is at a position where clearly it needs to redirect its energy towards these areas that do.

Seth Basham (Credit Suisse): How are you planning your new store growth going forward and are there certain states or certain geographies where you are going to be carrying back growth more than others?

Jim L. Wade: Advance Auto Parts’ mix for a number of years has been continuing to fill in and reinforce some of its core markets and then expand further into the North and out through the Midwest including places like Texas where the company has added a few stores; Chicago, it has added few stores. What the company has done looking at 140 to 150 stores is just look at all the projects it has in the pipeline and at what its plans are going to be for next year and adjust where it is appropriate. There will be no significant change in the strategy in any of the markets that Advance Auto Parts is in.

Seth Basham (Credit Suisse): You expect to leverage on a 3% or lower comparables going forward. Could you be more specific?

Jim L. Wade: The company has made some progress in a relatively short period of time. It has some significant opportunities left in some of the areas including occupancy costs and transportation and non-merchandise procurement and a number of other areas. It will have a better understanding of the quantification of those numbers as it works through the next few months and will be in a better shape when it is at the point of making 2008 guidance. Advance Auto Parts’ objective is to lower that point below 3% at which it needs to beat it to be able to leverage its expenses.

Bill Sims (Citigroup Investment Research): Did you have to give up much in the way of payable terms during the quarter in order to improve procurement cost?