Advance Auto Parts 2011 Annual Report Download - page 78

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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-24
9. Property and Equipment:
Property and equipment consists of the following:
Original
Useful Lives
January 1,
2011
January 2,
2010
Land and land improvements 0 - 10 years 330,962$ 313,938$
Buildings 30 years 376,268 363,992
Building and leasehold improvements 3 - 30 years 272,300 245,137
Furniture, fixtures and equipment 2 - 20 years 952,435 972,817
Vehicles 2 - 10 years 23,701 24,424
Construction in progress 103,605 82,837
Other 11,463 11,238
2,070,734 2,014,383
Less - Accumulated depreciation (927,564) (914,045)
Property and equipment, ne
t
1,143,170$ 1,100,338$
Depreciation expense was $163,378, $149,769 and $145,353 for Fiscal 2010, 2009 and 2008, respectively. The
Company capitalized approximately $4,875, $4,657 and $2,388 incurred for the development of internal use
computer software during Fiscal 2010, 2009 and 2008, respectively. These costs are included in the furniture,
fixtures and equipment category above and are depreciated on the straight-line method over three to five years.
10. Accrued Expenses:
Accrued expenses consist of the following:
January 1, January 2,
2011 2010
Payroll and related benefits 106,843$ 90,493$
Warranty reserves 36,352 30,387
Capital expenditures 43,365 28,838
Self-insurance reserves 46,778 93,706
Taxes payable 55,662 54,861
Other 115,086 94,775
Total accrued expenses 404,086$ 393,060$
The following table presents changes in the Company’s warranty reserves:
January 1, January 2, January 3,
2011 2010 2009
Warranty reserves, beginning of period 30,387$ 28,662$ 17,757$
Additions to warranty reserves 45,741 36,440 38,459
Reserves utilized (39,776) (34,715) (27,554)
Warranty reserves, end of period 36,352$ 30,387$ 28,662$