Advance Auto Parts 2013 Annual Report Download - page 82

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ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 28, 2013, December 29, 2012 and December 31, 2011
(in thousands, except per share data)
F-30
provided for any penalties associated with tax contingencies unless considered probable of assessment. The Company does not
expect its unrecognized tax benefits to change significantly over the next 12 months.
During the next 12 months, it is possible the Company could conclude on approximately $6,000 to $7,000 of the
contingencies associated with unrecognized tax uncertainties due mainly to the conclusion of audits and the expiration of
statutes of limitations. The majority of these resolutions would be achieved through the completion of current income tax
examinations.
The Company files U.S. and state income tax returns in jurisdictions with varying statutes of limitations. Fiscal 2010 and
subsequent years generally remain subject to examination by federal and state tax authorities.
16. Lease Commitments:
As of December 28, 2013, future minimum lease payments due under non-cancelable operating leases with lease terms
ranging from 1 year to 30 years through the year 2043 for all open stores are as follows:
Fiscal Year Amount
2014 $ 353,508
2015 316,637
2016 299,810
2017 283,333
2018 263,162
Thereafter 925,475
$ 2,441,925
The Company anticipates its future minimum lease payments will be partially off-set by future minimum sub-lease income.
As of December 28, 2013 and December 29, 2012, future minimum sub-lease income to be received under non-cancelable
operating leases is $29,950 and $25,561, respectively.
Net Rent Expense
Net rent expense for Fiscal 2013, 2012 and 2011 was as follows:
December 28,
2013
December 29,
2012
December 31,
2011
Minimum facility rentals $ 328,581 $ 300,552 $ 289,306
Contingency facility rentals 578 907 1,162
Equipment rentals 5,333 5,027 5,403
Vehicle rentals 29,100 18,401 20,565
363,592 324,887 316,436
Less: Sub-lease income (5,983)(4,600)(3,967)
$ 357,609 $ 320,287 $ 312,469
17. Contingencies:
In the case of all known contingencies, the Company accrues for an obligation, including estimated legal costs, when it is
probable and the amount is reasonably estimable. As facts concerning contingencies become known to the Company, the
Company reassesses its position with respect to accrued liabilities and other potential exposures. Estimates that are particularly
sensitive to future change include legal matters, which are subject to change as events evolve and as additional information
becomes available during the administrative and litigation process.