Advance Auto Parts 2003 Annual Report Download - page 38

13—Long-Term Debt
Long-term debt consists of the following:
January 3, December 28,
2004 2002
Senior Debt:
Tranche A, Senior Secured Term Loan at variable interest rates (3.69% at December 28, 2002),
repaid on December 5, 2003........................................................................................................................................... $— $ 82,989
Tranche C, Senior Secured Term Loan at variable interest rates (3.69% at December 29, 2002),
repaid on December 5, 2003........................................................................................................................................... —248,099
Tranche D, Senior Secured Term Loan at variable interest rates (3.13% at January 3, 2004), due November 2006........ 100,000 —
Tranche E, Senior Secured Term Loan at variable interest rates (3.18% at January 3, 2004), due November 2007........ 340,000 —
Revolving facility at variable interest rates (3.38% at January 3, 2004), due November 2006......................................... 5,000 1,700
Subordinated Debt:
Senior subordinated notes payable, interest due semi-annually at 10.25%, due April 2008 (called March 2003) ........... —151,450
Senior subordinated notes payable, interest due semi-annually at 10.25%, due April 2008, face amount
of $174,365 less unamortized discount of $10,912 at December 28, 2002 (called March 2003) ................................. —163,453
Senior discount debentures, interest at 12.875%, due April 2009, face amount of $91,050 less unamortized
discount of $3,219 at December 28, 2002 (called March 2003).................................................................................... —87,831
445,000 735,522
Less: Current portion of long-term debt................................................................................................................................. (22,220) (10,690)
Long-term debt, excluding current portion............................................................................................................................. $422,780 $724,832
During fiscal 2001, the Company recorded an impairment
charge of $12,300, to reduce the carrying value of certain
non-operating facilities to their estimated fair market value.
A charge of $4,700 represents the write-down of a closed
distribution center acquired as part of the Western merger. A
charge of $4,600 represents the reduction in carrying value
of the former Western Auto corporate office also acquired in
the Western merger. Both of these facilities were disposed
of in fiscal 2002.
The remaining $3,000 represents a reduction to the car-
rying value of a closed distribution center in Jeffersonville,
Ohio that was identified for closure in fiscal 2002 as part
of the Company’s supply chain initiatives. The carrying
value for this property included in assets held for sale was
$5,700 and $5,800 at January 3, 2004 and December 28,
2002, respectively. The reduction in this book value repre-
sents the Company’s best estimate of fair market value
based on recent marketing efforts to attract buyers for
this property.
10—Other Assets
As of January 3, 2004 and December 28, 2002, other
assets include deferred debt issuance costs of $3,987 and
$14,244, respectively (net of accumulated amortization of
$1,793 and $5,837, respectively), relating primarily to the
financing in connection with the Discount acquisition and the
fiscal 1998 recapitalization. Such costs are being amortized
over the term of the related debt (5 years). In April 2003,
the Company redeemed all of its currently outstanding
senior subordinated notes and senior discount debentures.
Accordingly, the Company wrote off $9,822 in deferred
debt issuance cost included in other assets.
11—Accrued Expenses
Accrued expenses consist of the following:
January 3, December 28,
2004 2002
Payroll and related benefits....................... $ 67,788 $ 75,767
Warranty.................................................... 15,578 15,620
Other.......................................................... 90,452 116,789
Total accrued expenses.............................. $173,818 $208,176
12—Other Long-Term Liabilities
Other long-term liabilities consist of the following:
January 3, December 28,
2004 2002
Employee benefits..................................... $ 19,162 $ 21,321
Restructuring and closed
store liabilities....................................... 4,684 7,203
Deferred income taxes .............................. 39,525 10,140
Other.......................................................... 11,731 10,797
Total other long-term liabilities ................ $ 75,102 $ 49,461
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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