Advance Auto Parts 2004 Annual Report Download - page 30

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28
Management’s฀Discussion฀and฀Analysis฀of฀Financial฀Condition฀and฀Results฀of฀Operations฀(continued)
฀ The฀ table฀below฀ presents฀ principal฀ cash฀flows฀ and฀related฀ weighted-average฀interest฀rates฀on฀our฀ long-term฀ debt฀out-
standing฀at฀January฀1,฀2005,฀by฀expected฀maturity฀dates.฀Additionally,฀the฀table฀includes฀the฀notional฀amounts฀of฀our฀debt฀
hedged฀and฀the฀impact฀of฀the฀anticipated฀average฀pay฀and฀receive฀rates฀of฀our฀interest฀rate฀swaps฀through฀their฀maturity฀
dates.฀Expected฀maturity฀dates฀approximate฀contract฀terms.฀Weighted-average฀variable฀rates฀are฀based฀on฀implied฀forward฀
rates฀in฀the฀yield฀curve฀at฀January฀1,฀2005,฀as฀adjusted฀by฀the฀limitations฀of฀the฀swap฀agreement.฀The฀impact฀of฀our฀three฀
interest฀rate฀swap฀agreements฀entered฀into฀in฀March฀2005฀are฀not฀reflected฀in฀the฀table฀below.฀Implied฀forward฀rates฀should฀
not฀be฀considered฀a฀predictor฀of฀actual฀future฀interest฀rates.
Fiscal฀
2005
Fiscal฀
2006
Fiscal฀
2007
Fiscal฀
2008
Fiscal฀
2009 Thereafter Total
Fair฀Market฀
Liability
(dollars฀in฀thousands)
Long-term฀debt:
฀ Variable฀rate฀............................... $31,700 $24,525 $40,200 $63,375 $52,700 $257,500 $470,000 —
฀ Weighted-average฀interest฀rate฀... 4.7% 5.4% 5.7% 6.1% 6.4% 6.7% 5.8% —
Interest฀rate฀swap:
฀ Variable฀to฀fixed฀......................... $125,000 $75,000 $฀ — $฀ — $฀ — $฀ — $125,000 $814
฀ Average฀pay฀rate฀......................... — — — — — — — —
฀ Average฀receive฀rate฀................... 0.5% 0.3% — — — — 0.5% —
Forward-Looking฀Statements
฀ Certain฀ statements฀ in฀ this฀ report฀ are฀ “forward-looking฀
statements”฀ within฀ the฀ meaning฀ of฀ Section฀ 27A฀ of฀ the฀
Securities฀ Act฀ of฀ 1933฀ and฀ Section฀ 21E฀ of฀ the฀ Securities฀
Exchange฀ Act฀ of฀ 1934,฀ which฀ are฀ usually฀ identified฀ by฀฀
the฀ use฀ of฀words฀such฀as฀“will,”฀“anticipates,”฀“believes,”฀
“estimates,”฀ “expects,”฀ “projects,”฀ “forecasts,”฀ “plans,”฀
“intends,”฀“should”฀or฀similar฀expressions.฀We฀intend฀those฀
forward-looking฀statements฀to฀be฀covered฀by฀the฀safe฀har-
bor฀provisions฀for฀forward-looking฀statements฀contained฀in฀
the฀ Private฀ Securities฀ Litigation฀ Reform฀ Act฀ of฀ 1995฀ and฀
are฀ included฀ in฀ this฀ statement฀ for฀ purposes฀ of฀ complying฀
with฀these฀safe฀harbor฀provisions.
฀ These฀forward-looking฀statements฀reflect฀current฀views฀
about฀our฀plans,฀strategies฀and฀prospects,฀which฀are฀based฀
on฀ the฀ information฀ currently฀ available฀ and฀ on฀ current฀
assumptions.
฀ Although฀ we฀ believe฀ that฀ our฀ plans,฀ intentions฀ and฀
expectations฀as฀reflected฀in฀or฀suggested฀by฀those฀forward-
looking฀ statements฀ are฀ reasonable,฀ we฀ can฀ give฀ no฀ assur-
ance฀ that฀ the฀ plans,฀ intentions฀ or฀ expectations฀ will฀ be฀
achieved.฀ Listed฀ below฀ and฀ discussed฀ elsewhere฀ in฀ this฀
report฀are฀some฀important฀risks,฀uncertainties฀and฀contin-
gencies฀which฀could฀cause฀our฀actual฀results,฀performance฀
or฀achievements฀to฀be฀materially฀different฀from฀the฀forward-
looking฀statements฀made฀in฀this฀report.฀These฀risks,฀uncer-
tainties฀and฀contingencies฀ include,฀ but฀are฀ not฀ limited฀ to,฀
the฀following:
•฀ ฀the฀implementation฀of฀our฀business฀strategies฀and฀goals;
•฀ ฀our฀ability฀to฀expand฀our฀business;
•฀ ฀integration฀of฀any฀future฀acquisitions;
•฀ ฀a฀decrease฀in฀overall฀demand฀for฀our฀products;
•฀ ฀the฀occurrence฀of฀natural฀disasters฀and/or฀extended฀peri-
ods฀of฀inclement฀weather;
•฀ ฀deterioration฀in฀general฀economic฀conditions;
•฀ ฀our฀ability฀to฀attract฀and฀retain฀qualified฀team฀members;
•฀ ฀competitive฀pricing฀and฀other฀competitive฀pressures;
•฀ ฀our฀relationships฀with฀our฀vendors;
•฀ ฀our฀involvement฀as฀a฀defendant฀in฀litigation฀or฀incurrence฀
of฀judgments,฀fines฀or฀legal฀costs;
•฀ ฀adherence฀ to฀ the฀ restrictions฀ and฀ covenants฀ imposed฀
under฀our฀credit฀facility;฀and
•฀ ฀other฀ statements฀ that฀ are฀ not฀ of฀ historical฀ fact฀ made฀
throughout฀this฀report,฀including฀in฀the฀sections฀entitled฀
“Management’s฀ Discussion฀ and฀ Analysis฀ of฀ Financial฀
Condition฀and฀Results฀of฀Operations”฀and฀“Risk฀Factors”฀
found฀ in฀ our฀ Form฀ 10-K฀ filed฀ on฀ March฀ 17,฀ 2005฀ with฀
the฀Securities฀and฀Exchange฀Commission.
฀ We฀assume฀no฀obligations฀to฀update฀publicly฀any฀forward-฀
looking฀statements,฀whether฀as฀a฀result฀of฀new฀information,฀
future฀ events฀ or฀ otherwise.฀In฀ evaluating฀ forward-looking฀
statements,฀you฀should฀consider฀these฀risks฀and฀uncertain-
ties,฀ together฀ with฀ the฀ other฀ risks฀ described฀ from฀ time฀ to฀
time฀ in฀ our฀ other฀ reports฀ and฀ documents฀ filed฀ with฀ the฀
Securities฀and฀Exchange฀Commission,฀and฀you฀should฀not฀
place฀undue฀reliance฀on฀those฀statements.