O'Reilly Auto Parts 2009 Annual Report Download - page 71

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57
2007, the Company recorded amortization expense of $14,097,000, $9,166,000, and $199,000, respectively, related to amortizable
intangible assets, which are included in “Other assets” on the accompanying Consolidated Balance Sheets. The components of the
Company’s amortizable and unamortizable intangible assets were as follows on December 31, 2009 and December 31, 2008 (in
thousands):
Cost Accumulated Amortization
December 31,
2009
December 31,
2008
December 31,
2009
December 31,
2008
Amortizable intangible assets
Favorable leases $
52,010 $ 52,270 $ 11,383 $
3,690
Trade names and trademarks 13,000 13,000 11,588 5,312
Other 481 819 201 547
Total amortizable intangible assets $
65,491 $ 66,089 $ 23,172 $
9,549
Unamortizable intangible assets
Goodwill $
744,313 $ 720,508
Total unamortizable intangible assets $
744,313 $ 720,508
In addition, the Company has recorded a liability for the values of operating leases with unfavorable terms, acquired in the acquisition
of CSK, totaling approximately $49,570,000 and $49,680,000 for the years ended December 31, 2009 and 2008, respectively, which
are included in the “Other liabilities” section of the Consolidated Balance Sheets. These leases have an estimated weighted-average
useful life of approximately 7.7 years. During the years ended December 31, 2009 and 2008, the Company recognized an amortized
benefit of $9,166,000 and $3,941,000, respectively, related to these unfavorable operating leases. None of the liabilities related to
unfavorable lease terms relate to stores to be closed as discussed in Note 2.
At December 31, 2009, estimated net amortization of the Company’s intangible assets and liabilities for each of the next five years is
as follows (in thousands):
2010
$
2,154
2011
897
2012
850
2013
639
2014
621
$
5,161
The change in the goodwill for the years ended December 31, 2009, and December 31, 2008, was as follows (in thousands):
Balance at December 31, 2007 $ 50,447
Acquisition of CSK 670,508
Other (447)
Balance at December 31, 2008 720,508
Adjustment to preliminary purchase
price allocation of CSK
24,479
Other (674)
Balance at December 31, 2009 $ 744,313