Advance Auto Parts 2005 Annual Report Download - page 36

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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
• competitive pricing and other competitive pressures;
• a decrease in demand for our products;
• the occurrence of natural disasters and/or
extended periods of inclement weather;
• deterioration in general economic conditions;
• our ability to attract and retain qualified
Team Members;
• integration of acquisitions;
• 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;
• acts of terrorism; 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 March 16, 2006 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 eval-
uating forward-looking statements, you should con-
sider these risks and uncertainties, 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.
The table below presents principal cash flows and related weighted average interest rates on our long-term debt
outstanding at December 31, 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 December 31, 2005. Implied forward rates
should not be considered a predictor of actual future interest rates.
Fiscal Fiscal Fiscal Fiscal Fiscal Fair Market
2006 2007 2008 2009 2010 Thereafter Total Liability
Long-term debt: (dollars in thousands)
Variable rate .............................. $ 32,700 $ 32,025 $ 63,375 $ 52,700 $257,500 $ — $438,300 $438,300
Weighted average interest rate .. 6.1% 6.1% 6.2% 6.3% 6.3% — 6.3% —
Interest rate swap:
Variable to fixed(1) ..................... $250,000 $175,000 $175,000 $175,000 $125,000 $ — $ — $ 3,090
Weighted average pay rate ........ — — — — — — — —
Weighted average receive rate .. 0.5% 0.4% 0.4% 0.4% 0.3% — 0.4% —
(1) Amounts presented may not be outstanding for the entire year.
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
harbor 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 assurance that the plans, intentions or expectations will be
achieved. Listed below and discussed elsewhere in this report are some important risks, uncertainties and con-
tingencies which could cause our actual results, performance or achievements to be materially different from the
forward-looking statements made in this report. These risks, uncertainties and contingencies include, but are not
limited to, the following:
• the implementation of our business strategies and goals;
• our ability to expand our business;