Advance Auto Parts 2007 Annual Report Download - page 81

Download and view the complete annual report

Please find page 81 of the 2007 Advance Auto Parts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 109

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109

ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
December 29, 2007, December 30, 2006 and December 31, 2005
(in thousands, except per share data)
9. Accrued Expenses:
Accrued expenses consist of the following:
December 29, December 30,
2007 2006
Payroll and related benefits 42,845$ 48,477$
Warrant
y
17,757 13,069
Capital expenditures 21,523 24,011
Self-insurance reserves
(a)
85,523 58,755
Property taxes 28,924 23,427
Other 104,842 85,236
Total accrued expenses 301,414$ 252,975$
(a) At December 30, 2006, medical self-insurance reserves of $12,764 were reflected in Payroll
and related benefits.
10. Long-term Debt:
Long-term debt consists of the following:
December 29,
2007
December 30,
2006
Senior Debt:
Revolving facility at variable interest rates
(5.93% and 6.13% at December 29, 2007 and December 30,
2006, respectively) due October 2011 451,000$ 476,800$
Term loan at variable interest rates
(6.19% at December 29, 2007) due October 2011 50,000 -
Other 4,672 440
505,672 477,240
Less: Current portion of long-term debt (610) (67)
Long-term debt, excluding current portion 505,062$ 477,173$
On December 4, 2007, the Company entered into a new $200,000 unsecured four-year term loan with Stores
serving as borrower. Proceeds from this term loan will be used to repurchase shares of the Company's common
stock under its stock repurchase program. As of December 29, 2007, the Company had borrowed $50,000 under the
term loan. Subsequent to December 29, 2007, the Company borrowed the remaining capacity under the term loan.
Voluntary prepayments and voluntary reductions of the term loan balance are permitted in whole or in part, at the
Company’s option, in minimum principal amounts as specified in the new term loan.
In addition to the term loan, the Company has a $750,000 unsecured five-year revolving credit facility with
Stores serving as the borrower. This facility was entered into in October 2006 and replaced the Company’s term
loans and revolver under its previous credit facility. Proceeds from this revolving loan were used to repay $433,775
of principal outstanding on the Company’s term loans and revolver under its previous credit facility. In conjunction
with this refinancing, the Company wrote-off existing deferred financing costs related to the Company’s previous
credit facility. The write-off of these costs of $1,887 was combined with a related gain on settlement of interest rate
swaps of $2,873 for a net gain on extinguishment of debt of $986 during the fiscal year ended December 30, 2006.
F-22