Advance Auto Parts 2010 Annual Report Download - page 84

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ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
January 1, 2011, January 2, 2010 and January 3, 2009
(in thousands, except per share data)
.
F-30
15. Lease Commitments:
At January 1, 2011, future minimum lease payments due under non-cancelable operating leases with lease terms
ranging from 1 year to 30 years through the year 2039 for all open stores are as follows:
Fiscal Year Amount
2011 297,315$
2012 265,680
2013 239,573
2014 210,722
2015 188,876
Thereafter 887,708
2,089,874$
The Company anticipates its future minimum lease payments will be partially off-set by future minimum sub-
lease income. At January 1, 2011 and January 2, 2010, future minimum sub-lease income to be received under non-
cancelable operating leases is $8,589 and $4,266, respectively.
Net Rent Expense
Net rent expense for Fiscal 2010, 2009 and 2008 was as follows:
2010 2009 2008
Minimum facility rentals 279,099$ 272,686$ 261,315$
Contingent facility rentals 1,115 729 642
Equipment rentals 5,372 4,738 4,338
Vehicle rentals 19,903 21,403 17,202
305,489 299,556 283,497
Less: Sub-lease income (3,813) (3,652) (3,940)
301,676$ 295,904$ 279,557$
Rent expense associated with closed locations is included in SG&A.
16. Store Closures and Impairment:
The Company closed 5 and relocated 12 stores during Fiscal 2010 and closed 55 stores and relocated 10 stores
during Fiscal 2009. During Fiscal 2009, 45 of the store closures were designated under the store divestiture plan.
The remaining store closures were part of the Company’s routine review and closure of underperforming stores at or
near the end of their respective lease terms. The store divestiture plan consisted of a review of operating stores to
identify locations for potential closing based on both financial and operating factors. These factors included cash
flow, profitability, strategic market importance, store full potential and current lease rates.
During Fiscal 2010 and 2009, the Company recognized $3,678 and $27,725 of total expense associated with its
closed store activities, respectively. The closed store expense in Fiscal 2009 included $26,057 of expense which was
divestiture related, or divestiture expense. These divestiture expenses included closed store exit costs of $21,121.
The closed store exit costs primarily included the establishment of the liability for future lease obligations as well as
severance. Closed store liabilities include the present value of the remaining lease obligations and management’s