Napa Auto Parts 2010 Annual Report Download - page 24

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Table of Contents
The following table shows the Company’s approximate obligations and commitments, including interest due on credit facilities, to
make future payments under specified contractual obligations as of December 31, 2010:
Contractual Obligations

 
    

Credit facilities $ 548,329 $275,952 $ 272,377 $ — $ —
Capital leases 2,215 408 642 483 682
Operating leases 505,043 124,370 168,553 84,023 128,097
Total contractual cash obligations $1,055,587 $ 400,730 $ 441,572 $84,506 $128,779
Due to the uncertainty of the timing of future cash flows associated with the Company’s unrecognized tax benefits at December 31,
2010, the Company is unable to make reasonably reliable estimates of the period of cash settlement with the respective taxing authorities.
Therefore, $50 million of unrecognized tax benefits have been excluded from the contractual obligations table above. Refer to Note 6 of the
Consolidated Financial Statements for a discussion on income taxes.
Purchase orders or contracts for the purchase of inventory and other goods and services are not included in our estimates. We are not
able to determine the aggregate amount of such purchase orders that represent contractual obligations, as purchase orders may represent
authorizations to purchase rather than binding agreements. Our purchase orders are based on our current distribution needs and are
fulfilled by our vendors within short time horizons. The Company does not have significant agreements for the purchase of inventory or
other goods specifying minimum quantities or set prices that exceed our expected requirements.
The Company guarantees the borrowings of certain independently owned automotive parts stores (independents) and certain other
affiliates in which the Company has a noncontrolling equity ownership interest (affiliates). The Company’s maximum exposure to loss as
a result of its involvement with these independents and affiliates is generally equal to the total borrowings subject to the Company’s
guarantee. To date, the Company has had no significant losses in connection with guarantees of independents’ and affiliates’ borrowings.
The following table shows the Company’s approximate commercial commitments as of December 31, 2010:
Other Commercial Commitments

  
    

Line of credit $ — $ — $ — $ — $ —
Standby letters of credit 50,419 50,419 — — —
Guaranteed borrowings of independents and affiliates 200,926 29,747 118,661 52,518 —
Total commercial commitments $ 251,345 $ 80,166 $ 118,661 $52,518 $ —
In addition, the Company sponsors defined benefit pension plans that may obligate us to make contributions to the plans from time
to time. Contributions in 2010 were $91 million. We expect to make a $52 million cash contribution to our qualified defined benefit plans
in 2011, and contributions required for 2011 and future years will depend on a number of unpredictable factors including the market
performance of the plans’ assets and future changes in interest rates that affect the actuarial measurement of the plans’ obligations.
Share Repurchases
In 2010, the Company repurchased approximately 1.8 million shares and the Company had remaining authority to purchase
approximately 16.0 million shares at December 31, 2010.
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