Advance Auto Parts 2008 Annual Report Download - page 78

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ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS – (Continued)
January 3, 2009, December 29, 2007 and December 30, 2006
(in thousands, except per share data)
The accompanying notes to the consolidated financial statements
are an integral part of these statements.
F-24
Property and equipment consists of the following:
Original
Useful Lives January 3,
2009 December 29,
2007
Land and land improvements 0 - 10 years 289,682$ 274,710$
Buildings 40 years 351,603 358,366
Building and leasehold improvements 10 - 40 years 229,372 208,395
Furniture, fixtures and equipment 3 - 12 years 897,778 868,421
Vehicles 2 - 10 years 25,545 26,382
Construction in progress 90,195 60,464
Other 4,658 4,230
1,888,833 1,800,968
Less - Accumulated depreciation (817,428) (753,024)
Property and equipment, net 1,071,405$ 1,047,944$
The Company capitalized approximately $2,388, $2,274 and $3,641 incurred for the development of internal use
computer software in accordance with the American Institute of Certified Public Accountant’s Statement of Position
98-1, “Accounting for the Cost of Computer Software Developed or Obtained for Internal Use,” or SOP 98-1,
during fiscal 2008, 2007 and 2006, respectively. These costs are included in the furniture, fixtures and equipment
category above and are depreciated on the straight-line method over three to seven years.
10. Accrued Expenses:
Accrued expenses consist of the following:
January 3, December 29,
2009 2007
Payroll and related benefits 75,471$ 42,845$
Warranty reserves 28,662 17,757
Capital expenditures 26,299 21,523
Self-insurance reserves 90,554 85,523
Taxes payable 69,714 48,201
Other 81,810 85,565
Total accrued expenses 372,510$ 301,414$
Additional information appears below regarding the Company’s accrued expenses for warranty reserves and
self-insurance reserves.
Warranty Reserves
The following table presents changes in the Company’s warranty reserves: