Advance Auto Parts 2015 Annual Report Download - page 82

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ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
January 2, 2016, January 3, 2015 and December 28, 2013
(in thousands, except per share data)
F-28
10. Accrued Expenses:
Accrued expenses consist of the following:
January 2,
2016
January 3,
2015
Payroll and related benefits $ 99,072 $ 116,198
Taxes payable 96,098 87,473
Self-insurance reserves 57,829 58,899
Warranty reserves 44,479 47,972
Capital expenditures 44,038 29,780
Other 211,647 180,351
Total accrued expenses $ 553,163 $ 520,673
The following table presents changes in the Company’s warranty reserves:
January 2,
2016
January 3,
2015
December 28,
2013
Warranty reserves, beginning of period $ 47,972 $ 39,512 $ 38,425
Reserves acquired with GPI — 4,490 —
Additions to warranty reserves 44,367 52,306 42,380
Reserves utilized (47,860)(48,336)(41,293)
Warranty reserves, end of period $ 44,479 $ 47,972 $ 39,512
11. Stock Repurchases:
The Company’s stock repurchase program allows it to repurchase its common stock on the open market or in privately
negotiated transactions from time to time in accordance with the requirements of the SEC. The Company’s $500,000 stock
repurchase program in place as of January 2, 2016 was authorized by its Board of Directors on May 14, 2012.
During 2015 and 2014, the Company repurchased no shares of its common stock under its stock repurchase program. The
Company had $415,092 remaining under its stock repurchase program as of January 2, 2016.
The Company repurchased 42 shares of its common stock at an aggregate cost of $6,665, or an average price of $156.98
per share, in connection with the net settlement of shares issued as a result of the vesting of restricted stock and restricted stock
units during 2015. The Company repurchased 35 shares of its common stock at an aggregate cost of $5,154, or an average price
of $148.85 per share, in connection with the net settlement of shares issued as a result of the vesting of restricted stock and
restricted stock units during 2014.
12. Earnings per Share:
Certain of the Company’s shares granted to Team Members in the form of restricted stock and restricted stock units are
considered participating securities which require the use of the two-class method for the computation of basic and diluted
earnings per share. For 2015, 2014 and 2013, earnings of $1,653, $1,555 and $895, respectively, were allocated to the
participating securities.
Diluted earnings per share are calculated by including the effect of dilutive securities. Share-based awards to purchase
approximately 1, 13 and 75 shares of common stock that had an exercise price in excess of the average market price of the
common stock during 2015, 2014 and 2013, respectively, were not included in the calculation of diluted earnings per share
because they are anti-dilutive.