Napa Auto Parts 2010 Annual Report Download - page 60

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Table of Contents


independents or the affiliates, the Company would obtain and liquidate certain collateral (e.g., accounts receivable and inventory) to
recover all or a portion of the amounts paid under the guarantee. When it is deemed probable that the Company will incur a loss in
connection with a guarantee, a liability is recorded equal to this estimated loss. To date, the Company has had no significant losses in
connection with guarantees of independents’ and affiliates’ borrowings.
The Company has accrued for guarantees related to the independents’ and affiliates’ borrowings as of December 31, 2010 and 2009.
These liabilities are not material to the financial position of the Company and are included in other long-term liabilities in the
accompanying consolidated balance sheets.
 
During 2010, the Company acquired four companies in the Industrial and Electrical Groups for approximately $90,645,000. The
Company allocated the purchase price to the assets acquired and the liabilities assumed based on their fair values as of their respective
acquisition dates. The results of operations for the acquired companies were included in the Company’s consolidated statements of
income beginning on their respective acquisition dates. The Company recorded approximately $40,247,000 of goodwill and other
intangible assets associated with the acquisitions. The Company is in the process of analyzing the estimated values of assets and
liabilities acquired. The allocation of the purchase price is therefore preliminary and subject to revision.
During 2009, the Company acquired eight companies in the Industrial and Automotive Groups for approximately $71,038,000. The
Company allocated the purchase price to the assets acquired and the liabilities assumed based on their fair values as of their respective
acquisition dates. The results of operations for the acquired companies were included in the Company’s consolidated statements of
income beginning on their respective acquisition dates. The Company recorded approximately $12,199,000 of goodwill and other
intangible assets associated with the acquisitions.
On June 1, 2009, the Company acquired the remaining noncontrolling interest in its consolidated subsidiary, Balkamp, Inc., for
approximately $63,165,000. The acquisition was accounted for as an equity transaction and the associated noncontrolling interest in the
subsidiary’s equity was eliminated as part of the transaction.
During 2008, the Company acquired eleven companies in the Automotive, Industrial, Office Supply and Electrical/Electronic
Groups for approximately $133,604,000. The Company allocated the purchase price to the assets acquired and the liabilities assumed
based on their fair values as of their respective acquisition dates. The results of operations for the acquired companies were included in
the Company’s consolidated statements of income beginning on their respective acquisition dates. The Company recorded approximately
$84,442,000 of goodwill and other intangible assets associated with these acquisitions.
 
The Company’s reportable segments consist of automotive, industrial, office products, and electrical/electronic materials. Within the
reportable segments, certain of the Company’s operating segments are aggregated since they have similar economic characteristics,
products and services, type and class of customers, and distribution methods.
The Company’s automotive segment distributes replacement parts (other than body parts) for substantially all makes and models of
automobiles, trucks, and other vehicles.
The Company’s industrial segment distributes a wide variety of industrial bearings, mechanical and fluid power transmission
equipment, including hydraulic and pneumatic products, material handling components, and related parts and supplies.
The Company’s office products segment distributes a wide variety of office products, computer supplies, office furniture, and
business electronics.
F-25