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ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
January 3, 2015, December 28, 2013 and December 29, 2012
(in thousands, except per share data)
F-22
6. Goodwill and Intangible Assets:
Goodwill
The following table reflects the carrying amount of goodwill and the changes in goodwill carrying amounts.
January 3,
2015
December 28,
2013
(53 weeks ended) (52 weeks ended)
Goodwill, beginning of period $ 199,835 $ 76,389
Acquisitions 798,043 123,446
Changes in foreign currency exchange rates (2,452)—
Goodwill, end of period $ 995,426 $ 199,835
As discussed in Note 4, Acquisitions, on January 2, 2014, the Company acquired GPI in an all-cash transaction which
resulted in the addition of $797,391 of goodwill. During 2014, the Company also added $652 of goodwill associated with the
acquisition of nine stores. On December 31, 2012, the Company acquired BWP in an all-cash transaction which resulted in the
addition of $123,446 of goodwill.
Intangible Assets Other Than Goodwill
In 2014, the Company recorded an increase to intangible assets of $757,453 related to the acquisition of GPI and nine
stores. The increase included customer relationships of $330,293 which will be amortized over 12 years, non-competes totaling
$50,695 which will be amortized over 5 years and favorable leases of $56,465 which will be amortized over the life of the
leases at a weighted average of 4.5 years. The increase also includes indefinite-lived intangibles of $320,000 from acquired
brands.
In 2013, the Company recorded a net increase to intangible assets of $29,001 related to the acquisition of BWP. The net
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. The increases in intangible assets are presented net of the
sale of certain BWP customer relationships subsequent to the acquisition which reduced intangible assets by $2,244.