Napa Auto Parts 2009 Annual Report Download - page 25

Table of Contents
including changes in accounting and taxation guidance, the uncertainties of litigation, as well as other risks and uncertainties discussed
in the Company’s Annual Report on Form 10-K for 2009 and from time to time in the Company’s subsequent filings with the SEC.
Forward-looking statements are only as of the date they are made, and the Company undertakes no duty to update its forward-
looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in
our subsequent Forms 10-Q, Form 8-K and other reports to the SEC.
 
Although the Company does not face material risks related to interest rates and commodity prices, the Company is exposed to
changes in foreign currency rates with respect to foreign currency denominated operating revenues and expenses.

The Company has translation gains or losses that result from translation of the results of operations of an operating unit’s foreign
functional currency into U.S. dollars for consolidated financial statement purposes. The Company’s principal foreign currency exchange
exposure is the Canadian dollar, which is the functional currency of our Canadian operations. Foreign currency exchange exposure
particularly in regard to the Canadian dollar and, to a lesser extent, the Mexican peso, negatively impacted our results for the year ended
December 31, 2009.
During 2009 and 2008, it was estimated that a 10% shift in exchange rates between those foreign functional currencies and the
U.S. dollar would have impacted translated net sales by approximately $104 million and $118 million, respectively.
 
The information required by this Item 8 is set forth under “Item 7. Management’s Discussion and Analysis of Financial Condition
and Results of Operations” and in a separate section of this report. See “Index to Consolidated Financial Statements and Financial
Statement Schedules” beginning on page F-1.
 

None.
 
 
As of the end of the period covered by this report, an evaluation was performed under the supervision and with the participation of
the Company’s management, including the Chief Executive Officer (CEO) and Chief Financial Officer (CFO), of the effectiveness of the
Company’s disclosure controls and procedures, as such term is defined in SEC Rule 13a-15(e). Based on that evaluation, the
Company’s management, including the CEO and CFO, concluded that the Company’s disclosure controls and procedures were effective,
as of the end of the period covered by this report, to provide reasonable assurance that information required to be disclosed in the
Company’s reports under the Securities Exchange Act of 1934, as amended, is recorded, processed, summarized and reported within the
time periods specified in the SEC’s rules and forms, and that such information is accumulated and communicated to the Company’s
management, including the CEO and CFO, as appropriate, to allow timely decisions regarding required disclosure.

A report of management’s assessment of our internal control over financial reporting, as such term is defined in SEC
Rule 13a-15(f), as of December 31, 2009 is set forth in a separate section of this report. See “Index to Consolidated Financial Statements
and Financial Statement Schedules” beginning on page F-1.
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