Advance Auto Parts 2013 Annual Report Download - page 71

Download and view the complete annual report

Please find page 71 of the 2013 Advance 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 108

  • 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

ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
December 28, 2013, December 29, 2012 and December 31, 2011
(in thousands, except per share data)
F-19
Intangible Assets Other Than Goodwill
In Fiscal 2013, the Company recorded a net increase to intangible assets of $29,001. The increase included Customer
Relationships of $23,801 which will be amortized over 12 years and other intangible assets of $5,200 which will be amortized
over a weighted average of 3.4 years. Included in the net increase in Fiscal 2013 is the reduction of $2,244 of intangible assets
in conjunction with the sale of certain BWP customer relationships subsequent to the acquisition. In Fiscal 2012, the Company
purchased the rights to certain software assets for $1,100 which will further support the Company’s e-commerce offerings.
The gross and net carrying amounts of acquired intangible assets as of December 28, 2013, December 29, 2012 and
December 31, 2011 are comprised of the following:
Acquired intangible assets
Subject to Amortization
Not Subject to
Amortization
Customer
Relationships
Acquired
Technology Other
Trademark
and
Tradenames
Intangible
Assets
(excluding
goodwill)
Gross:
Gross carrying amount at December 31, 2011 $ 9,800 $ 7,750 $ 885 $ 20,550 $ 38,985
Additions — 1,100 — — 1,100
Gross carrying amount at December 29, 2012 $ 9,800 $ 8,850 $ 885 $ 20,550 $ 40,085
Additions 23,801 — 5,200 — 29,001
Gross carrying amount at December 28, 2013 $ 33,601 $ 8,850 $ 6,085 $ 20,550 $ 69,086
Net:
Net book value at December 31, 2011 $ 3,618 $ 6,987 $ 225 $ 20,550 $ 31,380
Additions — 1,100 — — 1,100
2012 amortization (960) (2,668) (7) — (3,635)
Net carrying amount at December 29, 2012 $ 2,658 $ 5,419 $ 218 $ 20,550 $ 28,845
Additions 23,801 — 5,200 — 29,001
2013 amortization (3,167) (2,950) (1,857) — (7,974)
Net book value at December 28, 2013 $ 23,292 $ 2,469 $ 3,561 $ 20,550 $ 49,872
Future Amortization Expense
The table below shows expected amortization expense for the next five years for acquired intangible assets recorded as of
December 28, 2013:
Fiscal Year Amount
2014 $ 6,988
2015 3,515
2016 2,490
2017 2,490
2018 1,990
Thereafter 11,849