Advance Auto Parts 2006 Annual Report Download - page 38

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At December 30, 2006, we owned 588 of our stores and leased 2,494 stores. The expiration dates, including the
exercise of renewal options, of the store leases are summarized as follows:
Years AAP Stores AI Stores Total
2006-2007 25 8 33
2008-2012 173 37 210
2013-2017 602 28 630
2018-2027 924 14 938
2028-2037 554
-
554
2038-2051 129
-
129
2,407 87 2,494
Item 3. Legal Proceedings.
We currently and from time to time are involved in litigation incidental to the conduct of our business,
including litigation arising from claims of employment discrimination or other types of employment matters as a
result of claims by current and former employees. Although we diligently defend against these claims, we may enter
into discussions regarding settlement of these and other lawsuits, and may enter into settlement agreements, if we
believe settlement is in the best interests of our shareholders. The damages claimed against us in some of these
proceedings are substantial. Although the amount of liability that may result from these matters cannot be
ascertained, we do not currently believe that, in the aggregate, they will result in liabilities material to our
consolidated financial condition, future results of operations or cash flow.
Our Western Auto subsidiary, together with other defendants including automobile manufacturers, automotive
parts manufacturers and other retailers, has been named as a defendant in lawsuits alleging injury as a result of
exposure to asbestos-containing products. We and some of our other subsidiaries also have been named as
defendants in many of these lawsuits. The plaintiffs have alleged that these products were manufactured, distributed
and/or sold by the various defendants. To date, these products have included brake and clutch parts and roofing
materials. Many of the cases pending against us or our subsidiaries are in the early stages of litigation. The damages
claimed against the defendants in some of these proceedings are substantial. Additionally, some of the automotive
parts manufacturers named as defendants in these lawsuits have declared bankruptcy, which will limit plaintiffs’
ability to recover monetary damages from those defendants. Although we diligently defend against these claims, we
may enter into discussions regarding settlement of these and other lawsuits, and may enter into settlement
agreements, if we believe settlement is in the best interests of our shareholders. We also believe that most of these
claims are at least partially covered by insurance. Based on discovery to date, we do not believe the cases currently
pending will have a material adverse effect on us. However, if we were to incur an adverse verdict in one or more of
these claims and were ordered to pay damages that were not covered by insurance, these claims could have a
material adverse effect on our operating results, financial position and liquidity. If the number of claims filed against
us or any of our subsidiaries alleging injury as a result of exposure to asbestos-containing products increases
substantially, the costs associated with concluding these claims, including damages resulting from any adverse
verdicts, could have a material adverse effect on our operating results, financial position and liquidity in future
periods.
Item 4. Submission of Matters to a Vote of Security Holders.
None.
15