Advance Auto Parts 2003 Annual Report Download - page 36

recorded through purchase accounting that reflect costs of the plan to integrate the acquired operations into the Company’s
business. These integration plans relate to the operations acquired in the fiscal 1998 merger with Western Auto Supply
Company, or Western, and the fiscal 2001 acquisition of Discount. The following table presents a summary of the activity
for both of these liabilities:
Other
Severance Relocation Exit Costs Total
Closed Store Liabilities, December 30, 2000 ................................................................................ $ — $ — $ 6,788 $ 6,788
New provisions................................................................................................................................. 475 — 8,285 8,760
Change in estimates.......................................................................................................................... — — 11 11
Reserves utilized............................................................................................................................... (475) — (5,441) (5,916)
Closed Store Liabilities, December 29, 2001 ................................................................................ — — 9,643 9,643
New provisions................................................................................................................................. — — 3,808 3,808
Change in estimates.......................................................................................................................... — — 725 725
Reserves utilized............................................................................................................................... — — (5,284) (5,284)
Closed Store Liabilities, December 28, 2002 ................................................................................ — — 8,892 8,892
New provisions................................................................................................................................. — — 1,190 1,190
Change in estimates.......................................................................................................................... — — 1,522 1,522
Reserves utilized............................................................................................................................... — — (5,197) (5,197)
Closed Store Liabilities, January 3, 2004..................................................................................... $ — $ — $ 6,407 $ 6,407
Restructuring Liabilities, December 30, 2000 .............................................................................. $ — $ — $ 3,797 $ 3,797
Purchase accounting adjustments..................................................................................................... 9,292 611 3,606 13,509
Reserves utilized............................................................................................................................... (837) — (2,500) (3,337)
Restructuring Liabilities, December 29, 2001 .............................................................................. 8,455 611 4,903 13,969
Purchase accounting adjustments..................................................................................................... (3,129) (219) (1,039) (4,387)
Reserves utilized............................................................................................................................... (3,674) (367) (1,238) (5,279)
Restructuring Liabilities, December 28, 2002 .............................................................................. 1,652 25 2,626 4,303
Change in estimates.......................................................................................................................... — — (1,178) (1,178)
Reserves utilized............................................................................................................................... (1,598) (25) (452) (2,075)
Restructuring Liabilities, January 3, 2004 .................................................................................. $ 54 $ — $ 996 $ 1,050
Total Closed Store and Restructuring Liabilities at January 3, 2004....................................... $ 54 $ — $ 7,403 $ 7,457
New provisions established for closed store liabilities
include the present value of the remaining lease obligations
and management’s estimate of future costs of insurance,
property tax and common area maintenance reduced by the
present value of estimated revenues from subleases and are
established by a charge to selling, general and administra-
tive costs in the accompanying consolidated statements of
operations at the time the facilities actually close. The
Company currently uses discount rates ranging from 4.5%
to 7.8% for estimating these liabilities.
From time to time these estimates require revisions that
affect the amount of the recorded liability. The above
change in estimates relate primarily to changes in assump-
tions associated with the revenue from subleases. The effect
of changes in estimates for the closed store liabilities is netted
with new provisions and included in selling, general and
administrative expenses in the accompanying consolidated
statements of operations.
Changes in estimates associated with restructuring liabil-
ities resulted in adjustments to the carrying value of property
and equipment, net on the accompanying consolidated
balance sheets and did not affect the Company’s consolidated
statement of operations. The closed store and restructuring
liabilities are recorded in accrued expenses (current portion)
and other long-term liabilities (long-term portion) in the
accompanying consolidated balance sheets.
6—Receivables
Receivables consist of the following:
January 3, December 28,
2004 2002
Trade:
Wholesale (Note 3)................................. $ 435 $ 7,042
Retail....................................................... 24,594 18,836
Vendor......................................................... 56,727 67,057
Installment.................................................. 10,418 15,409
Other........................................................... 1,755 3,195
Total receivables......................................... 93,929 111,539
Less: Allowance for doubtful accounts...... (9,130) (8,965)
Receivables, net.......................................... $84,799 $102,574
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (continued)
January 3, 2004, December 28, 2002 and December 29, 2001
(in thousands, except per share data)
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