Advance Auto Parts 2014 Annual Report Download - page 80

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ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
January 3, 2015, December 28, 2013 and December 29, 2012
(in thousands, except per share data)
F-33
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 $1,000 to $2,000 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 a U.S. federal income tax return and income tax returns in various states and foreign jurisdictions. The
U.S. Internal Revenue Service has completed exams of the U.S. federal income tax returns for years 2007 and prior. With few
exceptions, the Company is no longer subject to state and local or non-U.S. income tax examinations by tax authorities for
years before 2008.
16. Lease Commitments:
Initial terms for facility leases are typically 10 to 15 years, with renewal options at five year intervals, and may include rent
escalation clauses. As of January 3, 2015, future minimum lease payments due under non-cancelable operating leases with lease
terms extending through the year 2059 are as follows:
Fiscal Year Amount
2015 $ 460,655
2016 439,530
2017 402,581
2018 363,154
2019 317,982
Thereafter 1,262,623
$ 3,246,525
The Company anticipates its future minimum lease payments will be partially off-set by future minimum sub-lease income.
As of January 3, 2015 and December 28, 2013, future minimum sub-lease income to be received under non-cancelable
operating leases is $20,289 and $29,950, respectively.
Net Rent Expense
Net rent expense for 2014, 2013 and 2012 was as follows:
January 3,
2015
December 28,
2013
December 29,
2012
Minimum facility rentals $ 463,345 $ 328,581 $ 300,552
Contingency facility rentals 488 578 907
Equipment rentals 8,230 5,333 5,027
Vehicle rentals 53,300 29,100 18,401
525,363 363,592 324,887
Less: Sub-lease income (9,966)(5,983)(4,600)
$ 515,397 $ 357,609 $ 320,287