O'Reilly Auto Parts 2010 Annual Report Download - page 59

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48
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
The Board of Directors and Shareholders of O’Reilly Automotive, Inc. and Subsidiaries:
We have audited the accompanying consolidated balance sheets of O’Reilly Automotive, Inc. and Subsidiaries as of December 31,
2010 and 2009, and the related consolidated statements of income, shareholders' equity, and cash flows for each of the three years in
the period ended December 31, 2010. Our audits also included the financial statement schedule listed in the Index at Item 15(a).
These financial statements and schedule are the responsibility of the Company's management. Our responsibility is to express an
opinion on these financial statements and schedule based on our audits.
We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of
material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the consolidated financial position of
O’Reilly Automotive, Inc. and Subsidiaries at December 31, 2010 and 2009, and the consolidated results of their operations and their
cash flows for each of the three years in the period ended December 31, 2010, in conformity with U.S. generally accepted accounting
principles. Also, in our opinion, the related financial statement schedule, when considered in relation to the basic financial statements
taken as a whole, presents fairly in all material respects the information set forth therein.
We also have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), O’Reilly
Automotive, Inc. and Subsidiaries' internal control over financial reporting as of December 31, 2010, based on criteria established in
Internal Control – Integrated Framework issued by the Committee of Sponsoring Organizations of the Treadway Commission and our
report dated February 28, 2011, expressed an unqualified opinion thereon.
/s/ Ernst & Young LLP
Kansas City, Missouri
February 28, 2011
49
Consolidated Balance Sheets
(In thousands, except share data)
December 31,
2010 2009
Assets
Current assets:
Cash and cash equivalents $ 29,721 $ 26,935
Accounts receivable, less allowance for doubtful accounts of $8,349 in
2010 and $6,795 in 2009
121,807 107,887
Amounts receivable from vendors 61,845 63,110
Inventory 2,023,488 1,913,218
Deferred income taxes 33,877 85,934
Other current assets 30,514 29,635
Total current assets 2,301,252 2,226,719
Property and equipment, at cost 2,705,434 2,353,240
Less: accumulated depreciation and amortization 775,339 626,861
Net property and equipment 1,930,095 1,726,379
Notes receivable, less current portion 18,047 12,481
Goodwill 743,975 744,313
Other assets, net 54,458 71,579
Total assets $ 5,047,827 $ 4,781,471
Liabilities and shareholders’ equity
Current liabilities:
Accounts payable $ 895,736 $ 818,153
Self-insurance reserves 51,192 55,348
Accrued payroll 52,725 42,790
Accrued benefits and withholdings 45,542 44,295
Income taxes payable 4,827 8,068
Other current liabilities 177,505 143,781
Current portion of long-term debt 1,431 106,708
Total current liabilities 1,228,958 1,219,143
Long-term debt, less current portion 357,273 684,040
Deferred income taxes 68,736 18,321
Other liabilities 183,175 174,102
Shareholders’ equity:
Preferred stock, $0.01 par value:
Authorized shares – 5,000,000
Issued and outstanding shares – none - -
Common stock, $0.01 par value:
Authorized shares – 245,000,000
Issued and outstanding shares –
141,025,544 at December 31, 2010, and
137,468,063 at December 31, 2009 1,410
1,375
Additional paid-in capital 1,141,749 1,042,329
Retained earnings 2,069,496 1,650,123
Accumulated other comprehensive loss (2,970) (7,962)
Total shareholders’ equity 3,209,685 2,685,865
Total liabilities and shareholders’ equity $ 5,047,827 $ 4,781,471
See accompanying Notes to consolidated financial statements.
FORM 10-K