Napa Auto Parts 2010 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2010 Napa Auto Parts annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 115

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115

Table of Contents
located in 42 states, and the Company owned either a noncontrolling or controlling interest in approximately 19 additional auto parts
stores located in three states. Other than NAPA AUTO PARTS stores located within Company owned distribution centers, the majority of
the automotive parts stores in which the Company has an ownership interest were operated in leased facilities. In addition, NAPA
Canada/UAP operates 12 distribution centers and approximately 189 automotive parts and Traction stores in Canada, and Auto Todo
operates ten distribution centers and eight stores and tire centers in Mexico. These operations are conducted in leased facilities.
The Company’s Automotive Parts Group also operates three Balkamp distribution centers, four Rayloc rebuilding and distribution
facilities and two transfer and shipping facilities. Finally, Altrom Canada operates 15 import parts distribution centers, Altrom America
operates two import parts distribution centers and the Heavy Vehicle Parts Group operates one TW distribution center, which serves 23
Traction stores of which 15 are company owned and located in the US. These operations are operated in leased facilities.
The Company’s Industrial Parts Group, operating through Motion and Motion Canada, operates nine distribution centers, 46
service centers and 488 branches. Approximately 90% of these branches are operated in leased facilities.
The Company’s Office Products Group operates 38 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 30 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 36 facilities are operated in
leased buildings except one facility, which is owned.
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 Consolidated Financial Statements set
forth beginning on page F-1.
 LEGAL PROCEEDINGS.
The Company is subject to various legal and governmental proceedings, many involving routine litigation incidental to the
businesses, including approximately 1,900 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 adverse effect on the Company’s business, results of operations or financial condition.
 [Removed and Reserved.]
12