O'Reilly Auto Parts 2009 Annual Report Download - page 78

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64
Assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):
December 31, 2009
Quoted Prices
in Active
Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Valuation
Technique
Total
(Level 1)
(Level 2)
(Level 3)
Derivative contracts $
--
$
(13,053)
$
--
(c)
$ (13,053)
December 31, 2008
Quoted Prices
in Active
Markets for
Identical Assets
Significant
Other
Observable
Inputs
Significant
Unobservable
Inputs
Valuation
Technique
Total
(Level 1)
(Level 2)
(Level 3)
Derivative contracts $
--
$
(18,874)
$
--
(c)
$ (18,874)
The estimated fair values of the Company’s financial instruments, which are determined by reference to quoted market prices, where
available, or are based on comparisons to similar instruments of comparable maturities, are as follows (in thousands):
December 31, 2009 December 31, 2008
Carrying
Amount
Estimated
Fair Value
Carrying
Amount
Estimated
Fair Value
Obligations under 6¾% senior
exchangeable notes $ 100,718 $ 119,273 $ 103,568 $ 99,750
The Company has determined that the estimated fair value of its asset-based revolving credit facility approximates the carrying amount
of $678,800,000. The valuation was determined by consulting investment bankers, the Company’s observations of the value tendered
by counterparties moving into and out of the facility and an analysis of the changes in credit spreads over the previous twelve months
for comparable companies in the industry.
NOTE 10 – ACCUMULATED OTHER COMPREHENSIVE LOSS
Unrealized holding gains on available-for-sale securities, consisting of the Company’s investment in CSK common stock prior to the
Company’s completion of the acquisition of CSK, as well as unrealized losses from interest rate swaps that qualify as cash flow hedges
are included in accumulated other comprehensive income (loss). The adjustment to accumulated other comprehensive loss for the year
ended December 31, 2009, totaled $5,821,000 with a corresponding tax liability of $2,270,000 resulting in a net of tax effect of
$3,551,000. The adjustment to accumulated other comprehensive loss for the year ended December 31, 2008, totaled $7,974,000 with
a corresponding tax liability of $3,261,000 resulting in a net of tax effect of $4,713,000.
Changes in accumulated other comprehensive income (loss) for the years ended December 31, 2007, December 31, 2008, and
December 31, 2009, consisted of the following (in thousands):
Unrealized
Gains (Losses)
on Securities
Unrealized
Losses on
Cash Flow
Hedges
Accumulated
Other
Comprehensive
Loss
Balance at December 31, 2006 $ -- $ -- $ --
Period change (6,800) -- (6,800)
Balance at December 31, 2007 (6,800) -- (6,800)
Period change 6,800 (11,513) (4,713)
Balance at December 31, 2008 -- (11,513) (11,513)
Period change -- 3,551 3,551
Balance at December 31, 2009 $ -- $ (7,962) $ (7,962)
Comprehensive income for the years ended December 31, 2009, December 31, 2008, and December 31, 2007, was $311,049,000
$181,519,000 and $187,188,000, respectively.