Jill A. Livesay: The company did not give up any significant payable terms during the quarter to grow its margin this quarter.

Bill Sims (Citigroup Investment Research): What was driving that relative to inventory?

Jill A. Livesay: The overall drop in payables is just a function of the payment as the terms come due. There is no significant change in the strategy with accounts payable.

Bill Sims (Citigroup Investment Research): You have not opened stores in Florida for the last several years, at least not any significant stores. Is there any thought in terms of reevaluating your Florida real estate portfolio and potentially either selling owned stores and taking the cash or doing some thing to decrease potential cannibalization you have seen in those markets?

Jim L. Wade: The strategy over the last several years in Florida is to continue to in fill the state. The company has well over 400 stores in the market and has also relocated a number of stores in the state as it has had the opportunity to do that. That basically will continue to be the strategy. The Florida market is a solid market. The company expects that is going to be the case forever and will be looking to continue to solidify its position there. It has good locations, it has a great market share and it is going to continue to work to grow on that. It will be a continuation of what it has done over the last several years.

Bill Sims (Citigroup Investment Research): Could you give an idea of timing of the repurchase plan as well as source of funds?

Jim L. Wade: Advance Auto Parts started ramping up its repurchases in the last few weeks as the stock price is attractive. It has strong cash flow to purchase stock at the appropriate time. It has plenty of other liquidity if it chooses to use that as well. The company will continue to evaluate and make the decision but the $500 million authorization that the Board approve is an indication of the value that they see here, and the company has the resources to fulfill that and it has demonstrated over the last couple of years some significant repurchases.

Jack Balis (Focus Research): Could you comment on the 250 positions that were eliminated?

Jack Brouillard: 75 were open positions that the company has decided not to fill. The positions in the field, 100 of the positions of the 175 relate to the cessation of the remodel program. Then there were some reductions in the line management in the field in terms of regional and district positions. Advance Auto Parts still feels it maintains excellent coverage in the field and there were in the headquarters in Roanoke about 31 positions that were eliminated.

Jack Balis (Focus Research): Looking at more incentive compensation, would that include as others have done, compensating your commercial sales people at the store level on a commission basis?

Jack Brouillard: That is something the company is looking at along with other things. It has not come to any firm decision, and if the company has 2 or 3 scenarios, it will run them in a portion of the company for a period of time and see the impact.

Jack Balis (Focus Research): What was the decline in Florida comparables?

Jim L. Wade: The company does not give specific numbers for specific regions. The comparables, taking out the Florida and the Gulf Coast regions was about 2.8% for the quarter.

Jack Balis (Focus Research): Do you believe that by 2008, deferred demand will come back and the industry should benefit from that and if so, shouldn’t you have more new stores to take advantage of that trend?

Jim L. Wade: There is some deferred maintenance going on that is going to come back over time because it ultimately has to be done. All the initiatives that the company is undertaking, are the ones that have caused it to see business come back when it successfully implement those decisions. In terms of how that affects the store expansion, a lot of the things that the company is doing will allow its new stores that it will be opening to be more effective going forward, both in terms of how they are merchandised as well as the occupancy cost and other factors that influence their performance. 140 to 150 stores are still a lot of stores, and a year from now, Advance Auto Parts will be in a better position to have better performing new stores.

Richard Weinhart (BMO Capital Markets): What were the comparables excluding Florida and the Gulf states for the first quarter, or could you clarify what kind of an impact you had between first and second quarter?

Jim L. Wade: It was about the same numbers in both quarters. The comparable in the second quarter excluding Florida and the Gulf Coast was higher than the first, but not significantly different.

Richard Weinhart (BMO Capital Markets): Is the sales boost that you are hoping to get from the expanded parts selection based on data related to customers that have essentially walked out because you did not have the part you tracked at or is this based on some additional market share gains related to kind of increasing traffic?

Elwyn G. Murray III: It is based on a number of things, not the least of which is input from the company’s parts pros where it has gathered a lot of insight from them on what is missing in the market. The company has data sources that allow it to see what late model and particularly where import coverage is needed in different markets. Likewise, what are the brands that it is not in that it needs to be to be credible with its commercial customers. Additionally, it has the capability to perform what effectively it calls a lost sales function in the store level, so literally in 3100 stores; it is able to capture sales that were missed on parts. There are a number of things that are serving as good inputs to improve the company’s parts availability. Based on some of the early indicators, the company is seeing results there.

Richard Weinhart (BMO Capital Markets): Are you actively going to be advertising this expanded selection to your commercial customers?