O'Reilly Auto Parts 2013 Annual Report Download - page 42

FORM 10-K
36
expires May 29, 2016. As of December 31, 2013, the cumulative authorization amount under the program was $3.5 billion. On February
5, 2014, we announced that our Board of Directors approved a resolution to increase the cumulative authorization amount by an additional
$500 million, which is effective for a three-year period and expires February 5, 2017. As of February 5, 2014, the cumulative authorization
amount under the program was $4.0 billion.
The following table identifies shares of the Company’s common stock that have been repurchased as part of our publicly announced share
repurchase program (in thousands, except per share data):
For the Year Ended December 31,
2013 2012
Shares repurchased 8,529 16,201
Average price per share $ 109.38 $ 89.20
Total investment $ 932,900 $ 1,445,044
As of December 31, 2013, we had $146 million remaining under our share repurchase program. Subsequent to the end of the year and
through February 28, 2014, we did not repurchase a material number of shares of our common stock. We repurchased a total of 41 million
shares of our common stock under our share repurchase program since the inception of the program in January of 2011 and through
February 28, 2014, at an average price of $82.61 for a total aggregate investment of $3.4 billion. As of February 28, 2014, we had
approximately $645 million remaining under our share repurchase program.
CONTRACTUAL OBLIGATIONS
Our contractual obligations as of December 31, 2013, included commitments for short and long-term debt arrangements, interest payments
related to long-term debt, future payments under non-cancelable lease arrangements, self-insurance reserves and purchase obligations
for construction contract commitments, which are identified in the table below and are fully disclosed in Note 6 “Leasing” and Note 13
“Commitments” to the Consolidated Financial Statements. We expect to fund these commitments primarily with operating cash flows
expected to be generated in the normal course of business or through borrowings under our Revolving Credit Facility.
Deferred income taxes, as well as commitments with various vendors for the purchase of inventory, are not reflected in the table below
due to the absence of scheduled maturities, the nature of the account or the commitment’s cancellation terms. Due to the absence of
scheduled maturities, the timing of certain of these payments cannot be determined, except for amounts estimated to be payable in 2014,
which are included in “Current liabilities” on our Consolidated Balance Sheets.
Payments Due By Period
Total
Before
1 Year
Years
1 and 2
Years
3 and 4
Years 5
and Over
(In thousands)
Contractual Obligations:
Long-term debt principal and interest payments (1) $1,905,981 $ 61,200 $ 122,400 $ 122,400 $1,599,981
Future minimum lease payments under capital leases (2) 103 77 26 — —
Future minimum lease payments under operating leases (2) 1,941,490 247,126 445,887 355,336 893,141
Other obligations 1,800 600 1,200 — —
Self-insurance reserves (3) 126,715 57,700 38,292 17,805 12,918
Construction commitments 80,803 80,803———
Total contractual cash obligations $4,056,892 $ 447,506 $ 607,805 $ 495,541 $2,506,040
(1) Our Revolving Credit Facility, which has a maximum aggregate commitment of $600 million and matures in July of 2018, bears interest (other
than swing line loans), at our option, at either the Base Rate or Eurodollar Rate (both as defined in the agreement) plus a margin, that will vary
from 0.975% to 1.600% in the case of loans bearing interest at the Eurodollar Rate and 0.000% to 0.600% in the case of loans bearing interest at
the Base Rate, in each case based upon the better of the ratings assigned to our debt by Moody’s Investor Service, Inc. and Standard & Poor’s
Rating Services, subject to limited exceptions. Swing line loans made under the Revolving Credit Facility bear interest at the Base Rate plus the
applicable margin described above. In addition, we pay a facility fee on the aggregate amount of the commitments in an amount equal to a percentage
of such commitments, varying from 0.150% to 0.400% based upon the better of the ratings assigned to our debt by Moody’s Investor Service, Inc.
and Standard & Poor’s Rating Services, subject to limited exceptions. Based on our current credit ratings, our margin for Base Rate loans is 0.000%,
our margin for Eurodollar Rate loans is 0.975% and our facility fee is 0.150%. As of December 31, 2013, we had no outstanding borrowings under
our Revolving Credit Facility.