Advance Auto Parts 2015 Annual Report Download - page 73

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ADVANCE AUTO PARTS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
January 2, 2016, January 3, 2015 and December 28, 2013
(in thousands, except per share data)
F-19
Purchase Price Allocation
The following table summarizes the consideration paid for GPI and the amounts of the assets acquired and liabilities
assumed as of the acquisition date:
Total Consideration $ 2,080,804
Recognized amounts of identifiable assets
acquired and liabilities assumed
Cash and cash equivalents $ 25,176
Receivables 255,997
Inventory 1,159,886
Other current assets 118,871
Property, plant and equipment 162,545
Intangible assets 756,571
Other assets 1,741
Accounts payable (704,006)
Accrued and other current liabilities (136,784)
Long-term liabilities (356,584)
Total identifiable net assets 1,283,413
Goodwill 797,391
Total acquired net assets $ 2,080,804
Due to the nature of GPI's business, the assets acquired and liabilities assumed as part of this acquisition are similar in
nature to those of the Company. The goodwill of $797,391 arising from the acquisition consists largely of the anticipated
synergies and economies of scale from the combined companies and the overall strategic importance of GPI to the Company.
The goodwill attributable to the acquisition will not be amortizable or deductible for tax purposes. For additional information
regarding goodwill and intangible assets acquired, see Note 5, Goodwill and Intangible Assets.
The Company recorded an asset associated with favorable leases of $56,465 and a liability associated with unfavorable
leases of $48,604, which are included in intangible assets and other long-term liabilities, respectively. Favorable and
unfavorable lease assets and liabilities will be amortized to rent expense over their expected lives, which approximates the
period of time that the favorable or unfavorable lease terms will be in effect. The fair value of financial assets acquired included
receivables of $255,997 primarily from Commercial customers and vendors. The gross amount due was $269,006, of which
$13,009 was expected to be uncollectible.
Unaudited Pro Forma Financial Information
The following unaudited consolidated pro forma financial information combines the respective measure of the Company
for Fiscal 2013 and GPI for the twelve months ended December 31, 2013. The pro forma financial information has been
prepared by adjusting the historical data to give effect to the acquisition as if it had occurred on December 30, 2012 (the first
day of the Company's fiscal 2013).