Napa Auto Parts 2008 Annual Report Download - page 23

Payment Due by Period
Less than Over
(in thousands) Total 1 year 1-3 yrs 3-5 yrs 5 years
Credit
facilities $ 602,829 $ 27,250 $ 303,202 $ 272,377 $ –
Capital
leases 7,703 1,634 2,317 1,728 2,024
Operating
leases 512,812 121,505 149,333 93,545 148,429
Total
contractual
cash
obligations $ 1,123,344 $ 150,389 $ 454,852 $ 367,650 $ 150,453
Due to the uncertainty of the timing of future cash flows associated
with the Company’s unrecognized tax benefits at December 31, 2008,
the Company is unable to make reasonably reliable estimates of the
period of cash settlement with the respective taxing authorities. ere-
fore, $36 million of unrecognized tax benefits have been excluded
from the contractual obligations table above. Refer to Note 6 to 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. e 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.
As discussed in ‘Construction and Lease Agreement’ above, the
Company has approximately $72 million outstanding under a con-
struction and lease agreement which expires in 2009. In addition,
the Company guarantees the borrowings of certain independently
controlled automotive parts stores (independents) and certain other
affiliates in which the Company has a minority equity ownership
interest (affiliates). e Company’s maximum exposure to loss as
a result of its involvement with these independents and affiliates is
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.
e following table shows the Company’s approximate commercial commitments under these two arrangements as of December 31, 2008:
Amount of Commitment Expiration per Period
Total Amounts Less than
(in thousands) Committed 1 year 1-3 years 3-5 years Over 5 years
Line of Credit – – – – –
Standby letters of credit $ 50,553 $ 50,553 $ – $ – $ –
Guaranteed borrowings of independents and affiliates 189,946 57,271 20,975 13,984 97,716
Residual value guarantee under operating leases 62,678 62,678 – – –
Total commercial commitments $ 303,177 $ 170,502 $ 20,975 $ 13,984 $ 97,716
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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 2008 were $3 million. We expect to make a
$53 million cash contribution to our qualified defined benefit plans
in 2009, and contributions required for 2010 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
On August 21, 2006, our Board of Directors authorized the repur-
chase of 15 million shares of our common stock, and on November
17, 2008, the Board authorized the repurchase of an additional
15 million shares. Such repurchase plans were announced on
August 21, 2006 and November 17, 2008, respectively. e authoriza-
tion for these repurchase plans continues until all such shares have
been repurchased or the repurchase plan is terminated by action of
the Board of Directors. In 2008, the Company repurchased approxi-
mately 6.8 million shares and the Company had remaining authority
to purchase approximately 18.5 million shares at December 31, 2008.