Napa Auto Parts 2014 Annual Report Download - page 57

Download and view the complete annual report

Please find page 57 of the 2014 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 92

  • 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

Genuine Parts Company and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)
December 31, 2014
Changes in Accumulated Other Comprehensive
Loss by Component
Pension
Benefits
Other
Post-
Retirement
Benefits
Foreign
Currency
Translation Total
(In Thousands)
Beginning balance, January 1, 2013 ...................... $(629,907) $(2,669) $ 131,084 $(501,492)
Other comprehensive income (loss) before reclassifications,
netoftax ....................................... 223,991 1,629 (168,703) 56,917
Amounts reclassified from accumulated other
comprehensive income (loss), net of tax .............. 46,837 83 — 46,920
Net current period other comprehensive income (loss) ..... 270,828 1,712 (168,703) 103,837
Ending balance, December 31, 2013 ................... $(359,079) $ (957) $ (37,619) $(397,655)
The accumulated other comprehensive loss components related to the pension benefits are included in the
computation of net periodic benefit cost in the employee benefit plans footnote.
Fair Value of Financial Instruments
The carrying amounts reflected in the consolidated balance sheets for cash and cash equivalents, trade
accounts receivable, trade accounts payable, and borrowings under the line of credit approximate their respective
fair values based on the short-term nature of these instruments. At December 31, 2014 and 2013, the fair value of
fixed rate debt was approximately $505,000,000 and $496,000,000, respectively. The fair value of fixed rate debt
is designated as Level 2 in the fair value hierarchy (i.e., significant observable inputs) and is based primarily on
the discounted value of future cash flows using current market interest rates offered for debt of similar credit risk
and maturity. At December 31, 2014 and 2013, the carrying value of fixed rate debt was $500,000,000 and is
included in long-term debt in the consolidated balance sheets.
Shipping and Handling Costs
Shipping and handling costs are classified as selling, administrative and other expenses in the accompanying
consolidated statements of income and comprehensive income and totaled approximately $270,000,000,
$250,000,000, and $220,000,000, for the years ended December 31, 2014, 2013, and 2012, respectively.
Advertising Costs
Advertising costs are expensed as incurred and totaled $71,300,000, $57,900,000, and $43,200,000 in the
years ended December 31, 2014, 2013, and 2012, respectively.
Accounting for Legal Costs
The Company’s legal costs expected to be incurred in connection with loss contingencies are expensed as
such costs are incurred.
Share-Based Compensation
The Company maintains various long-term incentive plans, which provide for the granting of stock options,
stock appreciation rights (SARs), restricted stock, restricted stock units (RSUs), performance awards, dividend
equivalents and other share-based awards. SARs represent a right to receive upon exercise an amount, payable in
shares of common stock, equal to the excess, if any, of the fair market value of the Company’s common stock on
F-13