Advance Auto Parts 2015 Annual Report Download - page 86

Download and view the complete annual report

Please find page 86 of the 2015 Advance Auto Parts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 112

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112

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-32
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.
14. 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 2, 2016, future minimum lease payments due under non-cancelable operating leases with lease
terms extending through the year 2059 are as follows:
Fiscal Year Amount
2016 $ 491,602
2017 430,596
2018 399,896
2019 362,679
2020 316,063
Thereafter 1,249,671
$ 3,250,507
The Company anticipates its future minimum lease payments will be partially off-set by future minimum sub-lease income.
As of January 2, 2016 and January 3, 2015, future minimum sub-lease income to be received under non-cancelable operating
leases is $18,622 and $20,289, respectively.
Net Rent Expense
Net rent expense for 2015, 2014 and 2013 was as follows:
January 2,
2016
January 3,
2015
December 28,
2013
Minimum facility rentals $ 471,061 $ 463,345 $ 328,581
Contingency facility rentals 303 488 578
Equipment rentals 11,632 8,230 5,333
Vehicle rentals 61,147 53,300 29,100
544,143 525,363 363,592
Less: Sub-lease income (7,569)(9,966)(5,983)
$ 536,574 $ 515,397 $ 357,609
15. 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.
The Company’s Western Auto subsidiary, together with other defendants including, but not limited to, 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. The Company and some of its other subsidiaries also have been named as
a defendant in many asbestos-related lawsuits. The automotive products at issue in these lawsuits are primarily brake parts. The