Advance Auto Parts 2011 Annual Report Download - page 31

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16
At January 1, 2011, we owned 696 of our stores and leased 2,867 stores. The expiration dates, including the exercise
of renewal options, of the store leases are summarized as follows:
Years AAP Stores AI Stores Total
2010-2011 21 7 28
2012-2016 223 72 295
2017-2021 634 68 702
2022-2031 745 47 792
2032-2041 925
-
925
2042-2069 125
-
125
2,673 194 2,867
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 the Company and 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. These products have primarily included brake parts. 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 the Company and our shareholders. We also believe that many 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. Reserved.
None.