Napa Auto Parts 2014 Annual Report Download - page 58

Genuine Parts Company and Subsidiaries
Notes to Consolidated Financial Statements — (Continued)
December 31, 2014
the date of exercise over the base value of the grant. The terms of such SARs require net settlement in shares of
common stock and do not provide for cash settlement. RSUs represent a contingent right to receive one share of
the Company’s common stock at a future date. The majority of awards previously granted vest on a pro-rata basis
for periods ranging from one to five years and are expensed accordingly on a straight-line basis. The Company
issues new shares upon exercise or conversion of awards under these plans.
Net Income per Common Share
Basic net income per common share is computed by dividing net income by the weighted average number of
common shares outstanding during the year. The computation of diluted net income per common share includes
the dilutive effect of stock options, stock appreciation rights and nonvested restricted stock awards options.
Options to purchase approximately 610,000, 630,000, and 730,000 shares of common stock ranging from $63 —
$87 per share were outstanding at December 31, 2014, 2013, and 2012, respectively. These options were
excluded from the computation of diluted net income per common share because the options’ exercise price was
greater than the average market price of common stock in each respective year.
Reclassifications
Certain prior period amounts have been reclassified to conform to the current year presentations.
Recent Accounting Pronouncements
In February 2013, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards
Update (“ASU”) 2013-02, Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive
Income. Under ASU 2013-02, an entity is required to provide information about the amounts reclassified out of
accumulated other comprehensive income by component. In addition, an entity is required to present, either on
the face of the financial statements or in the notes, significant amounts reclassified out of accumulated other
comprehensive income by the respective line items of net income, but only if the amount reclassified is required
to be reclassified in its entirety in the same reporting period. For amounts that are not required to be reclassified
in their entirety to net income, an entity is required to cross-reference to other disclosures that provide additional
details about those amounts. ASU 2013-02 does not change the current requirements for reporting net income or
other comprehensive income in the financial statements. ASU 2013-02 is effective for the Company’s interim
and annual periods beginning after December 15, 2012. The adoption of ASU 2013-02 did not have a material
impact on the consolidated financial statements for the years ended December 31, 2014 and December 31, 2013.
In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (“ASU 2014-
09”), which creates a single, comprehensive revenue recognition model for all contracts with customers. The
updated standard requires an entity to recognize revenue to reflect the transfer of promised goods or services to
customers at an amount that the entity expects to be entitled to in exchange for those goods and services. ASU
2014-09 is effective for fiscal years, and interim periods within those years, beginning after December 15, 2016,
and may be adopted either retrospectively or on a modified retrospective basis whereby the new standard would
be applied to new contracts and existing contracts with remaining performance obligations as of the effective
date, with a cumulative catch-up adjustment recorded to beginning retained earnings at the effective date for
existing contracts with remaining performance obligations. Early adoption is not permitted. The Company is
currently evaluating the impact of ASU 2014-09 on the Company’s consolidated financial statements and related
disclosures.
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