Napa Auto Parts 2015 Annual Report Download - page 20

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Mexico, Auto Todo operates 11 distribution centers and eight automotive parts stores and tire centers, and NAPA
Mexico operates one distribution center and eleven automotive parts stores. These operations in both Canada and
Mexico are conducted in leased facilities. GPC Asia Pacific operates throughout Australia and New Zealand with
eight distribution centers, 417 Repco stores and 80 branches associated with the Ashdown Ingram, Motospecs,
McLeod and RDA Brakes operations. These distribution center, store and branch operations are conducted in
leased facilities.
The Company’s Automotive Parts Group also operates four Balkamp distribution and redistribution centers,
four Rayloc distribution facilities and three transfer and shipping facilities. Nearly all of the Balkamp and Rayloc
operations are conducted in facilities owned by the Company. Altrom Canada operates 13 import parts dis-
tribution centers and branches, and Altrom America operates two import parts distribution centers. The Heavy
Vehicle Parts Group operates one TW distribution center, which serves 21 Traction stores of which 14 are com-
pany owned and located in the U.S. These operations are conducted in leased facilities.
The Company’s Industrial Parts Group, operating through Motion and Motion Canada, operates 15 dis-
tribution centers, 46 service centers and 533 branches. Approximately 90% of these locations are operated in
leased facilities.
The Company’s Office Products Group operates 40 facilities in the United States and five facilities in
Canada distributed among the Group’s five geographic divisions. Approximately 75% of these facilities are
operated in leased buildings.
The Company’s Electrical/Electronic Materials Group operates in 50 locations in the United States, one
location in Puerto Rico, one location in the Dominican Republic, three locations in Mexico and one location in
Canada. All of this Group’s 56 facilities are operated in leased buildings.
We believe that our facilities on the whole are in good condition, are adequately insured, are fully utilized
and are suitable and adequate for the conduct of our current operations.
For additional information regarding rental expense on leased properties, see Note 4 of Notes to Con-
solidated Financial Statements beginning on page F-1.
ITEM 3. LEGAL PROCEEDINGS.
The Company is subject to various legal and governmental proceedings, many involving routine litigation
incidental to the businesses, including approximately 2,550 product liability lawsuits resulting from its national
distribution of automotive parts and supplies. Many of these involve claims of personal injury allegedly resulting
from the use of automotive parts distributed by the Company. While litigation of any type contains an element of
uncertainty, the Company believes that its defense and ultimate resolution of pending and reasonably anticipated
claims will continue to occur within the ordinary course of the Company’s business and that resolution of these
claims will not have a material effect on the Company’s business, results of operations or financial condition.
ITEM 4. MINE SAFETY DISCLOSURES.
Not applicable.
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