ADVANCE AUTO PARTS, INC.
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (in thousands)
## Table 0 ##
(1) Accounts written off during the period.
These amounts did not impact the Company’s statement of operations for any year presented.
Note: Other valuation and qualifying accounts have not been reported in this schedule because they are either not applicable or because the information has been included elsewhere in this report.
accordance with the terms of the preferred stock.
This amount represents the units of merger consideration relating to the 6% preferred stock converted by those holders in the 15-day period following the Merger.
(2) Represents the present value of all remaining future dividend payments (from the conversion date through the mandatory conversion date on August 13, 2010) paid to holders of 6% preferred stock that elected to convert in connection with the Merger using the discount rate as stipulated in the terms of the preferred stock.
(3) Represents the cash consideration paid to holders of Schering-Plough deferred stock units issued in 2007 and prior which were converted into the right to receive cash as specified in the Merger agreement attributable to precombination services.
(4) Represents the fair value of Schering-Plough stock option, performance share unit and deferred stock unit replacement awards attributable to precombination service issued to holders of these awards in the Merger.
The fair value of outstanding Schering-Plough stock options and performance share units for 2007 awards and prior, which immediately vested at the effective time of the Merger, was attributed to precombination service and included in the consideration transferred.
Stock option, performance share unit and deferred stock unit awards for 2008 and 2009, did not immediately vest upon completion of the Merger.
For these awards, the fair value of the awards attributed to precombination services was included as part of the consideration transferred and the fair value attributed to postcombination service is being recognized as compensation cost over the requisite service period in the postcombination financial statements of New Merck.
Preliminary Allocation of Consideration Transferred to Net Assets Acquired The following amounts represent the preliminary determination of the fair value of identifiable assets acquired and liabilities assumed in the Merger.
The final determination of fair value for certain assets and liabilities will be completed in 2010 which may result in adjustments to the preliminary values presented below:
## Table 1 ##
(1) In connection with the Merger, the Company obtained a controlling interest in the Merck/Schering-Plough partnership.
The table above reflects Schering-Plough’s share of the fair value of the Merck/Schering-Plough partnership’s net assets including intangibles and inventories.
Not reflected in this table are Merck’s share of the fair value of the Merck/Schering-Plough partnership’s net assets recorded in connection with the fair value adjustment to Merck’s previously held equity interest in the partnership (see “Merck/Schering-Plough Partnership” below).
(2) IPR&D represents the fair value assigned to incomplete research projects, which at the time of the Merger, had not reached technological feasibility.
The amounts were capitalized and are being accounted for as indefinite-lived intangible assets, subject to impairment testing until completion or abandonment of the projects.
Upon successful completion of each project, Merck will make a determination as to the useful life of the asset and begin amortization (see “In-Process Research and Development” below).
(3) The goodwill recognized is largely attributable to anticipated synergies expected to arise after the Merger.
Approximately $8.7 billion of the goodwill has been allocated to the Pharmaceutical segment.
The remainder of the goodwill was allocated to other non-reportable segments.
The goodwill is not deductible for tax purposes.
In order to allocate the Merger consideration, the Company estimated the fair value of the assets and liabilities of Schering-Plough.
No contingent assets or liabilities were recognized at fair value as of the Merger date because the fair value of such contingencies could not be determined.
Contingent liabilities were recorded to the
backed securities, as well as certain corporate notes and bonds with limited market activity.
At December 31, 2009, $71.5 million, or approximately 7.3%, of the Company’s investment securities were categorized as Level 3 assets (all of which were pledged under certain collateral arrangements (see Note 17)).
All of the assets classified as Level 3 at December 31, 2009 were acquired when Old Merck elected to be redeemed-in-kind from a short-term fixed income fund that restricted cash redemptions as described below.
If the inputs used to measure the financial assets and liabilities fall within more than one level described above, the categorization is based on the lowest level input that is significant to the fair value measurement of the instrument.
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis Financial assets and liabilities measured at fair value on a recurring basis are summarized below:
## Table 2 ##
(1) Substantially all of the asset-backed securities are highly-rated (Standard & Poor’s rating of AAA and Moody’s Investors Service rating of Aaa), secured primarily by credit card, auto loan, and home equity receivables, with weighted-average lives of primarily 5 years or less.
Mortgage-backed securities represent AAA-rated securities issued or unconditionally guaranteed as to payment of principal and interest by U. S.  government agencies.
(2) Other assets represent a portion of the pledged collateral discussed below and in Note 17.
At December 31, 2009, Level 2 other assets are comprised of $39.5 million of asset-backed securities, $11.6 million of mortgage backed securities and $4.0 million of corporate notes and bonds.
At December 31, 2008, Level 2 other assets are comprised of $987.4 million of corporate notes and bonds, $792.5 million of municipal securities, $357.3 million of commercial paper, $276.0 million of mortgage-backed securities, $240.1 million of U. S.  government and agency securities and $224.6 million of asset-backed securities.
(3) The fair value determination of derivatives includes an assessment of the credit risk of counterparties to the derivatives and the Company’s own credit risk, the effects of which were not significant.

<table><tr><td>Allowance for doubtful accounts receivable:</td><td>Balance atBeginningof Period</td><td>Charges toExpenses</td><td>Deductions</td><td></td><td>Balance atEnd ofPeriod</td></tr><tr><td>January 3, 2015</td><td>$13,295</td><td>$17,182</td><td>$-14,325</td><td><sup>-1</sup></td><td>$16,152</td></tr><tr><td>January 2, 2016</td><td>16,152</td><td>22,067</td><td>-12,461</td><td><sup>-1</sup></td><td>25,758</td></tr><tr><td>December 31, 2016</td><td>25,758</td><td>24,597</td><td>-21,191</td><td><sup>-1</sup></td><td>29,164</td></tr></table>
<table><tr><td>Cash and cash equivalents</td><td>$5,427.4</td></tr><tr><td>Inventories</td><td>7,371.8</td></tr><tr><td>Other current assets</td><td>4,815.5</td></tr><tr><td>Property, plant and equipment</td><td>6,677.6</td></tr><tr><td>Other identifiable intangible assets:<i><sup>-1</sup></i></td><td></td></tr><tr><td>Products and product rights(10-yearweighted average useful life)</td><td>32,955.8</td></tr><tr><td>In-process research and development (“IPR&D”)<i><sup>(2)</sup></i></td><td>6,344.5</td></tr><tr><td>Tradenames(26-yearweighted average useful life)</td><td>1,538.0</td></tr><tr><td>Other</td><td>74.0</td></tr><tr><td>Other noncurrent assets</td><td>982.1</td></tr><tr><td>Current liabilities</td><td>-6,864.0</td></tr><tr><td>Deferred income tax liabilities</td><td>-8,907.6</td></tr><tr><td>Long-term debt</td><td>-8,089.2</td></tr><tr><td>Other noncurrent liabilities</td><td>-3,238.2</td></tr><tr><td>Total identifiable net assets</td><td>39,087.7</td></tr><tr><td>Goodwill<i><sup>-3</sup></i></td><td>10,484.1</td></tr><tr><td>Estimated consideration transferred</td><td>$49,571.8</td></tr></table>
<table><tr><td></td><td colspan="4"> Fair Value Measurements Using</td><td colspan="4">Fair Value Measurements Using</td></tr><tr><td></td><td> Quoted Prices   In Active   Markets for   Identical Assets   (Level 1)</td><td> Significant   Other   Observable   Inputs   (Level 2)</td><td> Significant   Unobservable   Inputs   (Level 3)</td><td> Total</td><td>Quoted Prices  In Active  Markets for  Identical Assets  (Level 1)</td><td>Significant  Other  Observable  Inputs  (Level 2)</td><td>Significant  Unobservable  Inputs  (Level 3)</td><td>Total</td></tr><tr><td></td><td colspan="4">December 31, 2009</td><td colspan="4">December 31, 2008</td></tr><tr><td> Assets</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td><i>Investments</i></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>U.S. government and agency securities</td><td>$-</td><td>$215.6</td><td>$-</td><td>$215.6</td><td>$-</td><td>$2,885.7</td><td>$-</td><td>$2,885.7</td></tr><tr><td>Corporate notes and bonds</td><td>-</td><td>205.2</td><td>-</td><td>205.2</td><td>-</td><td>3,093.2</td><td>-</td><td>3,093.2</td></tr><tr><td>Municipal securities</td><td>-</td><td>186.7</td><td>-</td><td>186.7</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Mortgage-backed securities<i><sup>-1</sup></i></td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>723.9</td><td>-</td><td>723.9</td></tr><tr><td>Commercial paper</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>133.0</td><td>-</td><td>133.0</td></tr><tr><td>Asset-backed securities<i><sup>-1</sup></i></td><td>-</td><td>36.0</td><td>-</td><td>36.0</td><td>-</td><td>306.7</td><td>-</td><td>306.7</td></tr><tr><td>Foreign government bonds</td><td>-</td><td>-</td><td>-</td><td>-</td><td>-</td><td>319.4</td><td>-</td><td>319.4</td></tr><tr><td>Equity securities</td><td>39.4</td><td>39.1</td><td>-</td><td>78.5</td><td>71.1</td><td>73.6</td><td>-</td><td>144.7</td></tr><tr><td>Other debt securities</td><td>-</td><td>3.4</td><td>-</td><td>3.4</td><td>-</td><td>2.8</td><td>-</td><td>2.8</td></tr><tr><td></td><td>39.4</td><td>686.0</td><td>-</td><td>725.4</td><td>71.1</td><td>7,538.3</td><td>-</td><td>7,609.4</td></tr><tr><td><i>Other assets</i></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Securities held for employee compensation</td><td>107.7</td><td>14.2</td><td>-</td><td>121.9</td><td>-</td><td>-</td><td>-</td><td>-</td></tr><tr><td>Other assets<i><sup>-2</sup></i></td><td>-</td><td>55.1</td><td>71.5</td><td>126.6</td><td>-</td><td>2,877.9</td><td>96.6</td><td>2,974.5</td></tr><tr><td></td><td>107.7</td><td>69.3</td><td>71.5</td><td>248.5</td><td>-</td><td>2,877.9</td><td>96.6</td><td>2,974.5</td></tr><tr><td><i>Derivative assets<sup>-3</sup></i></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Purchased currency options</td><td>-</td><td>291.9</td><td>-</td><td>291.9</td><td>-</td><td>451.3</td><td>-</td><td>451.3</td></tr><tr><td>Forward exchange contracts</td><td>-</td><td>60.3</td><td>-</td><td>60.3</td><td>-</td><td>73.2</td><td>-</td><td>73.2</td></tr><tr><td>Interest rate swaps</td><td>-</td><td>26.7</td><td>-</td><td>26.7</td><td>-</td><td>23.9</td><td>-</td><td>23.9</td></tr><tr><td></td><td>-</td><td>378.9</td><td>-</td><td>378.9</td><td>-</td><td>548.4</td><td>-</td><td>548.4</td></tr><tr><td>Total assets</td><td>$147.1</td><td>$1,134.2</td><td>$71.5</td><td>$1,352.8</td><td>$71.1</td><td>$10,964.6</td><td>$96.6</td><td>$11,132.3</td></tr><tr><td> Liabilities</td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td><i>Derivative liabilities<sup>-3</sup></i></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td><td></td></tr><tr><td>Written currency options</td><td>$-</td><td>$0.3</td><td>$-</td><td>$0.3</td><td>$-</td><td>$1.9</td><td>$-</td><td>$1.9</td></tr><tr><td>Forward exchange contracts</td><td>-</td><td>72.3</td><td>-</td><td>72.3</td><td>-</td><td>273.1</td><td>-</td><td>273.1</td></tr><tr><td>Total liabilities</td><td>$-</td><td>$72.6</td><td>$-</td><td>$72.6</td><td>$-</td><td>$275.0</td><td>$-</td><td>$275.0</td></tr></table>

Question: what percentage did the allowance for doubtful accounts receivables increase from the beginning of 2015 to the end of 2016?