Napa Auto Parts 2009 Annual Report Download - page 46

Table of Contents
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dilutive effect of stock options, stock appreciation rights and non-vested restricted stock awards options. Options to purchase
approximately 5,400,000, 4,400,000 and 1,600,000 shares of common stock ranging from $37 — $49 per share were outstanding at
December 31, 2009, 2008 and 2007, respectively. These options were not included in the computation of diluted net income per common
share because the options’ exercise price was greater than the average market price of common stock.
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Certain prior period amounts have been reclassified to conform to the current year presentation.
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In December 2007, the Financial Accounting Standards Board (FASB) issued guidance that establishes new accounting and
reporting standards for the noncontrolling interest in a subsidiary and for the deconsolidation of a subsidiary. This guidance requires that
noncontrolling minority interests be reported as equity instead of a liability on the balance sheet. Additionally, it requires disclosure of
consolidated net income attributable to the parent and to the noncontrolling interest on the face of the income statement. The guidance is
effective for fiscal years beginning on or after December 15, 2008. The Company adopted the guidance on January 1, 2009 and
reclassified noncontrolling interests from liabilities to equity for all periods presented. Refer to Note 9 for a description of the Company’s
acquisition of a substantial portion of the noncontrolling interests during 2009. The net income attributable to noncontrolling interests is
not material to the Company’s consolidated net income.
In December 2008, the FASB provided additional guidance on an employer’s disclosures about plan assets of a defined benefit
pension or other postretirement plan on investment policies and strategies, major categories of plan assets, inputs and valuation
techniques used to measure the fair value of plan assets and significant concentrations of risk within plan assets. The new guidance is
effective for fiscal years ending after December 15, 2009, with earlier application permitted. Upon initial application, these provisions are
not required for earlier periods that are presented for comparative purposes. The Company adopted the guidance for the year ended
December 31, 2009. Refer to Note 7 for the additional disclosures required by this guidance.
In June 2009, the FASB issued new guidance that addresses the elimination of the concept of a qualifying special purpose entity. It
also replaces the quantitative-based risks and rewards calculation for determining which enterprise has a controlling financial interest in a
variable interest entity with an approach focused on identifying which enterprise has the power to direct the activities of a variable interest
entity and the obligation to absorb losses of the entity or the right to receive benefits from the entity. Additionally, the guidance requires an
ongoing assessment of whether a company is the primary beneficiary of the entity. The guidance is effective for the Company beginning
on January 1, 2010. The Company does not expect the adoption to have a material impact on the Company’s consolidated financial
statements.
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