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FORM 10-K
Intangibles other than goodwill:
The following table identifies the components of the Company's amortizable intangibles as of December 31, 2015 and 2014 (in thousands):
Cost of Amortizable
Intangibles
Accumulated Amortization
(Expense) Benefit Net Amortizable Intangibles
December 31,
2015
December 31,
2014
December 31,
2015
December 31,
2014
December 31,
2015
December 31,
2014
Amortizable intangible assets:
Favorable leases $ 32,070 $ 49,780 $(19,991)$(35,145)$ 12,079 $ 14,635
Non-compete agreements 732 617 (409)(344)323 273
Total amortizable
intangible assets $ 32,802 $ 50,397 $(20,400)$(35,489)$ 12,402 $ 14,908
Unfavorable leases $ 28,580 $ 49,200 $ 22,415 $ 40,263 $ 6,165 $ 8,937
The Company recorded favorable lease assets in conjunction with the acquisition of CSK Auto Corporation ("CSK"); these favorable
lease assets represent the values of operating leases acquired with favorable terms. These favorable leases had an estimated weighted-
average remaining useful life of approximately 9.1 years as of December 31, 2015. For the years ended December 31, 2015, 2014 and
2013, the Company recorded amortization expense of $2.7 million, $3.9 million and $4.0 million, respectively, related to its amortizable
intangible assets, which are included in "Other assets, net" on the accompanying Consolidated Balance Sheets.
The Company recorded unfavorable lease liabilities in conjunction with the acquisition of CSK; these unfavorable lease liabilities represent
the values of operating leases acquired with unfavorable terms. These unfavorable leases had an estimated weighted-average remaining
useful life of approximately 4.1 years as of December 31, 2015. For the years ended December 31, 2015, 2014 and 2013, the Company
recognized an amortized benefit of $2.8 million, $3.7 million and $4.5 million, respectively, related to these unfavorable operating leases,
which are included in "Other liabilities" on the accompanying Consolidated Balance Sheets.
The following table identifies the estimated amortization expense and benefit of the Company's intangibles for each of the next five years
as of December 31, 2015 (in thousands):
December 31, 2015
Amortization Expense Amortization Benefit Total Amortization Expense
2016 $ (2,336) $ 2,055 $ (281)
2017 (1,920) 1,493 (427)
2018 (1,457) 923 (534)
2019 (1,235) 712 (523)
2020 (1,054) 541 (513)
Total $ (8,002) $ 5,724 $ (2,278)
NOTE 5 – FINANCING
The following table identifies the amounts of the Company's financing facilities, which were included in "Long-term debt, less current
portion" on the accompanying Consolidated Balance Sheets as of December 31, 2015 and 2014 (in thousands):
December 31,
2015 2014 (1)
Revolving Credit Facility $ — $ —
$500 million, 4.875% Senior Notes due 2021 (2), effective interest rate of 4.963% 495,951 495,144
$300 million, 4.625% Senior Notes due 2021 (3), effective interest rate of 4.647% 298,396 298,113
$300 million, 3.800% Senior Notes due 2022 (4), effective interest rate of 3.845% 297,535 297,215
$300 million, 3.850% Senior Notes due 2023 (5), effective interest rate of 3.851% $ 298,136 $ 297,925
(1) Prior period amounts have been reclassified to conform to current period presentation, due to the Company's adoption of new accounting standards
during the fourth quarter ended December 31, 2015, see Note 1 for further information.