Advance Auto Parts 2010 Annual Report Download - page 47

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Other
As of January 1, 2011, we had $3.0 million outstanding under an economic development note and other
financing arrangements.
As of January 1, 2011, we had a credit rating from Standard & Poor’s of BBB- and from Moody’s Investor
Service of Baa3. The current outlooks by Standard & Poor’s and Moody’s are both stable. The current pricing grid
used to determine our borrowing rate under our revolving credit facility is based on our credit ratings. If these credit
ratings decline, our interest rate on outstanding balances may increase. Conversely, if these credit ratings improve,
our interest rate may decrease. In addition, if our credit ratings decline, our access to financing may become more
limited.
Off-Balance-Sheet Arrangements
As of January 1, 2011, we had no off-balance-sheet arrangements as defined in Regulation S-K Item 303 of the
SEC regulations. We include other off-balance-sheet arrangements in our contractual obligations table including
operating lease payments, interest payments on our credit facility and letters of credit outstanding.
Contractual Obligations
In addition to our Notes and revolving credit facility, we utilize operating leases as another source of financing.
The amounts payable under these operating leases are included in our schedule of contractual obligations. Our future
contractual obligations related to long-term debt, operating leases and other contractual obligations at January 1,
2011 were as follows:
Less than More Than
Contractual Obligations Total 1 Year 1 - 3 Years 3 - 5 Years 5 Years
Long-term debt
(1)
301,824$ 973$ 1,502$ 525$ 298,824$
Interest payments
(2)
182,028 26,689 34,577 34,512 86,250
Operating leases
(3)
2,089,874 297,315 505,253 399,598 887,708
Other long-term liabilities
(4)
165,943 - - - -
2,739,669$ 324,977$ 541,332$ 434,635$ 1,272,782$
(in thousands)
Payments Due by Period
Note: For additional information refer to Note 6, Long-term Debt; Note 14, Income Taxes; Note 15, Lease Commitments; Note
16, Store Closures and Impairment; Note 17, Contingencies; and Note 18, Benefit Plans, in the Notes to Consolidated Financial
Statements, included in Item 15, Exhibits, Financial Statement Schedules, of this Annual Report on Form 10-K.
(1) Long-term debt represents primarily the principal amount due under our 5.75% Notes, which become due
in Fiscal 2020.
(2) Interest payments in Fiscal 2011 include $9,357 in net payments related to our interest rate swaps which
mature in October 2011.
(3) We lease certain store locations, distribution centers, office space, equipment and vehicles. Our property
leases generally contain renewal and escalation clauses and other concessions. These provisions are
considered in our calculation of our minimum lease payments which are recognized as expense on a
straight-line basis over the applicable lease term. Any lease payments that are based upon an existing index
or rate are included in our minimum lease payment calculations.
(4) Primarily includes deferred income taxes, self-insurance liabilities, unrecognized income tax benefits,
closed store liabilities and obligations for employee benefit plans for which no contractual payment
schedule exists and we expect the payments to occur beyond 12 months from January 1, 2011.
Accordingly, the related balances have not been reflected in the "Payments Due by Period" section of the
table.