O'Reilly Auto Parts 2010 Annual Report Download - page 30

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18
Complications in our distribution centers and other factors affecting the distribution of merchandise may affect our business.
We operate 23 distribution centers (“DC”) nationwide to support our business. If complications arise with any facility or if any
facility is severely damaged or destroyed, our other DCs may not be able to fully support the resulting additional distribution demands.
This may adversely affect our ability to deliver inventory on a nightly basis and therefore affect our ability to timely provide products
to our customers resulting in lost sales. Such a disruption in revenue could potentially have a negative impact on our results of
operations and financial condition.
Environmental legislation and regulations could affect our operations, such as by increasing fuel prices, and therefore increase
our operating costs.
Initiatives to limit greenhouse gas emissions and bills related to climate change have been introduced in the U.S. Congress, which
could adversely impact all industries. While it is uncertain whether these will become law, additional climate change related mandates
could potentially be forthcoming, and these mandates, if enacted, could adversely impact our costs, including, among other things,
increasing fuel prices.
Item 1B. Unresolved Staff Comments
Not applicable.
19
Item 2. Properties
The following table provides certain information regarding our administrative offices and distribution centers (“DC”) as of December
31, 2010:
Operating Square
Location Principal Use(s) Footage Interest
Atlanta, GA Distribution Center 492,350 Leased (a)
Belleville, MI Distribution Center 333,262 Leased (b)
Billings, MT Distribution Center 108,300 Leased (c)
Dallas, TX Distribution Center 442,000 Owned
Denver, CO Distribution Center 321,242 Owned
Des Moines, IA Distribution Center 253,886 Owned
Dixon, CA Distribution Center (relocated to Stockton, California, in 2010) 366,900 Leased (d)
Greensboro, NC Distribution Center 441,600 Owned
Houston, TX Distribution Center 532,615 Owned
Indianapolis, IN Distribution Center 657,603 Owned
Kansas City, MO Distribution Center 299,018 Owned
Knoxville, TN Distribution Center 150,766 Owned
Little Rock, AR Distribution Center 122,969 Leased (e)
Lubbock, TX Distribution Center 276,896 Owned
Mobile, AL Distribution Center 301,068 Leased (f)
Moreno Valley, CA Distribution Center 547,478 Owned
Nashville, TN Distribution Center 315,977 Leased (g)
Oklahoma City, OK Distribution Center 320,667 Owned (h)
Phoenix, AZ Distribution Center 383,570 Leased (i)
Salt Lake City, UT Distribution Center 294,932 Owned
Seattle, WA Distribution Center 533,790 Owned
Springfield, MO Distribution Center 328,721 Owned
Stockton, CA Distribution Center 720,836 Leased (j)
St. Paul, MN Distribution Center 324,668 Owned
Auburn, WA Bulk Facility 81,761 Leased (k)
Commerce, CA Bulk Facility 75,000 Leased (l)
McAllen, TX Bulk Facility 24,560 Leased (m)
Springfield, MO Bulk Facility 35,200 Owned
Springfield, MO Return/Deconsolidation Facility 140,970 Leased (n)
Springfield, MO Return Facility 302,357 Owned
Phoenix, AZ Corporate Offices 174,664 Leased (o)
Springfield, MO Corporate Offices 435,600 Owned
Springfield, MO Corporate Offices 34,617 Leased (p)
Springfield, MO Corporate Offices, Training and Technical Center 22,000 Owned
Total operating square footage 10,133,347
(a) Occupied under the terms of a lease expiring October 31, 2024, with an unaffiliated party, subject to renewal for ten five-year
terms at our option.
(b) Occupied under the terms of a lease expiring February 28, 2015, with an unaffiliated party, subject to renewal for three five-year
terms at our option.
(c) Occupied under the terms of two separate leases the first lease expiring September 30, 2011, with an unaffiliated party, subject to
renewal for two three-year terms at our option and the second lease expiring January 31, 2031, with an unaffiliated party, subject
to renewal for one five-year term at our option.
(d) Occupied under the terms of a lease expiring April 30, 2011, with an unaffiliated party, not subject to renewal. The operations of
this acquired distribution center in Dixon, California, were relocated to a larger distribution center in Stockton, California, during
2010.
(e) Occupied under the terms of a lease expiring March 31, 2012, with an unaffiliated party, subject to renewal for four five-year
terms at our option.
(f) Occupied under the terms of a lease expiring December 31, 2012, with an unaffiliated party, subject to renewal for ten five-year
terms at our option.
FORM 10-K