Napa Auto Parts 2005 Annual Report Download - page 33

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impairment was recognized for the years ended December 31,
2005, 2004, and 2003.
The changes in the carrying amount of goodwill during the
years ended December 31, 2005 and 2004, by reportable
segment, as well as other identifiable intangible assets, are
summarized as follows:
3. CREDIT FACILITIES
The principal amount of the Company’s borrowings subject
to variable rates totaled approximately $881,000 and $968,000
at December 31, 2005 and 2004, respectively.The weighted
average interest rate on the Company’soutstanding borrowings
was approximately 6.05% at December 31, 2005 and 2004.
In November 2004, the Company repaid in full a $125,000,000
financing with a consortium of financial institutions and
insurance companies (the Notes) scheduled to mature in
November 2010.
The Company maintains a $350,000,000 unsecured revolving
line of credit with a consortium of financial institutions that
matures in October 2008 and bears interest at LIBOR plus .25%
(4.61% at December 31, 2005). No amounts were outstanding
under this line of credit at December 31, 2005 and 2004.
Certain borrowings contain covenants related to a maximum
debt-to-equity ratio, a minimum fixed-charge coverage ratio,
and certain limitations on additional borrowings. At December
31, 2005, the Company was in compliance with all such
covenants. Due to the workers compensation and insurance
reserve requirements in certain states, the Company also
had unused letters of credit of $52,600,000 and $47,500,000
outstanding at December 31, 2005 and 2004, respectively.
Total interest expense, net of interest income, for all borrowings
was $29,564,000 in 2005, $37,260,000 in 2004, and $51,538,000
in 2003.
Amounts outstanding under the Company’s credit facilities
consist of the following:
Approximate maturities under the Company’s credit facilities
are as follows:
4. LEASED PROPERTIES
The Company leases land, buildings and equipment. Certain
land and building leases have renewal options generally for
periods ranging from two to fifteen years. In addition, certain
properties occupied under operating leases contain normal
purchase options. The Company also has an $85,000,000
construction and lease facility.Properties acquired by the lessor
are constructed and/or then leased to the Company under
operating lease agreements. The total amount advanced and
outstanding under this facility at December 31, 2005, was
approximately $83,880,000. Since the resulting leases are
accounted for as operating leases, no debt obligation is
recorded on the Company’sbalance sheet.
Land and buildings includes $8,781,000 and $20,490,000,
respectively, with accumulated depreciation of $7,393,000,
for leases of distribution centers and stores capitalized
at December 31, 2005. Expenses for capital leases were
approximately $3,466,000, $2,776,000 and $2,103,000 in 2005,
2004, and 2003, respectively.
GOODWILL
Identifiable
Office Tangible
(in thousands) Automotive Industrial Products Assets Total
Balance as of
January 1, 2004 $ 21,617 $ 31,170 $ 2,131 $ 3,110 $ 58,028
Amortization during
the year — — — (356) (356)
Balance as of
December 31, 2004 21,617 31,170 2,131 2,754 57,672
Goodwill acquired
during the year 4,522 239 — 680 5,441
Amortization during
the year — — — (396) (396)
Balance as of
December 31, 2005 $ 26,139 $ 31,409 $ 2,131 $ 3,038 $ 62,717
(in thousands) December 31, 2005 2004
Unsecured term notes:
November 30, 2002, Series A Senior Notes,
$250,000,000, 5.86% fixed,
due November 30, 2008 $ 250,000 $ 250,000
November 30, 2002, Series B Senior Notes,
$250,000,000, 6.23% fixed,
due November 30, 2011 250,000 250,000
Long term debt 500,000 500,000
Other borrowings 881 968
$500,881 $500,968
(in thousands)
2006 $ 881
2007 —
2008 250,000
2009 —
2010 —
Thereafter 250,000
$500,881