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PG.50 O’REILLY AUTOMOTIVE 2008 ANNUAL REPORT
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
In addition, the Company has recorded a liability for the preliminary estimated values of operating leases with unfavorable terms, acquired in
the acquisition of CSK, totaling approximately $49.9 million, which is included in the other liabilities section of the 2008 consolidated balance
sheet. ese leases have an estimated weighted-average useful life of approximately 7.7 years. During the year ending December 31, 2008, the
Company recognized an amortized benet of $3.9 million related to these unfavorable operating leases.
At December 31, 2008, estimated net amortization of the Company’s intangible assets and liabilities for each of the next ve years is as follows:
(In thousands)
2009 $ 7,001
2010 2,229
2011 995
2012 969
2013 799
$ 11,993
e change in the net goodwill for the years ended December 31, 2008, and December 31, 2007, is as follows:
(In thousands)
Balance at December 31, 2006 $ 49,065
Other 1,382
Balance at December 31, 2007 50,447
Acquisition of CSK Automotive, Inc. 670,508
Other (447)
Balance at December 31, 2008 $ 720,508
NOTE 4 – LONG-TERM DEBT
Outstanding long-term debt was as follows on December 31, 2008, and December 31, 2007:
(In thousands) December 31, 2008 December 31, 2007
Capital leases $ 14,927 $ 469
Series 2001-B Senior Notes -- 25,000
Series 2006-A Senior Notes -- 75,000
6 ¾% Senior Exchangeable Notes 103,568 --
FILO revolving credit facility 125,000 --
Tranche A revolving credit facility 489,200 --
Total debt and capital lease obligations 732,695 100,469
Current maturities of debt and capital lease obligations 8,131 25,320
Total long-term debt and capital lease obligations $ 724,564 $ 75,149
On July 11, 2008, in connection with the acquisition of CSK (see Note 2 “Business Combination”), the Company entered into its ABL Credit
Agreement for a ve-year $1.2 billion asset-based revolving credit facility arranged by Bank of America, N.A. (“BA”), which the Company used
to renance debt, fund the cash portion of the acquisition, pay for other transaction-related expenses and provide liquidity for the combined
Company going forward.
e ABL Credit Agreement is comprised of a ve-year $1.075 billion tranche A revolving credit facility and a ve-year $125 million rst-in-
last-out revolving credit facility (FILO tranche) both of which mature on July 11, 2013. As part of the ABL Credit Agreement, the Company has
pledged virtually all of its assets as collateral and is subject to an ongoing consolidated leverage ratio covenant. On the date of the transaction,
the amount of the borrowing base available, as described in the ABL Credit Agreement, under the credit facility was $1.050 billion of which