O'Reilly Auto Parts 2011 Annual Report Download - page 69

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,845)
,150
,830
59
The following table identifies the changes in goodwill for the years ended December 31, 2011 and 2010 (in thousands):
Balance at December 31, 2009 $ 744,313
Other (338)
Balance at December 31, 2010 743,975
Other (68)
Balance at December 31, 2011 $ 743,907
As of December 31, 2011 and 2010, the Company did not have any other unamortizable assets other than goodwill.
Intangibles other than goodwill:
The following table identifies the components of the Company’s amortizable intangibles as of December 31, 2011 and 2010 (in
thousands):
Amortizable intangible assets:
Favorable leases $ 51,660 $52,010 $ (23,969) $ (18,329)
Non-compete agreements 793 579 (427) (309)
Total amortizable intangible assets $ 52,453 $52,589 $ (24,396) $ (18,638)
Unfavorable leases $ 49,380 $49,570 $ 26,560 $20,071
Cost
Accumulated Amortization
(Expense) Benefit
December 31,
2011
December 31,
2010
December 31,
2011
December 31,
2010
The Company recorded favorable lease assets in conjunction with the acquisition of CSK; these favorable lease assets represent the
values of operating leases acquired with favorable terms. These favorable leases had an estimated weighted-average remaining useful
life of approximately 10.1 years as of December 31, 2011. For the years ended December 31, 2011, 2010 and 2009, the Company
recorded amortization expense of $6.1 million, $8.5 million, and $14.1 million, respectively, related to its amortizable intangible
assets, which are included in ―Other assets, net‖ on the accompanying Consolidated Balance Sheets.
The Company recorded unfavorable lease liabilities in conjunction with the acquisition of CSK; these unfavorable lease liabilities
represent the values of operating leases acquired with unfavorable terms. These unfavorable leases had an estimated weighted-
average remaining useful life of approximately 5.8 years as of December 31, 2011. For the years ended December 31, 2011, 2010 and
2009, the Company recognized an amortized benefit of $6.7 million, $7.0 million and $9.2 million, respectively, related to these
unfavorable operating leases, which are included in ―Other liabilities‖ on the accompanying Consolidated Balance Sheets. These
unfavorable lease liabilities are not included as a component of the Company’s closed store reserves, which are discussed in Note 6.
The following table identifies the estimated amortization expense and benefit of the Company’s intangibles for each of the next five
years as of December 31, 2011 (in thousands):
Amortization
Expens e
Amortization
Benefit
Total
2012 $ (4,956) $ 5,651 $ 695
2013 (4,041) 4,548 507
2014 (3,143) 3,642 499
2015 (2,712) 2,794 82
2016 (2,357) 2,076 (281)
Total $ (17,209) $ 18,711 $ 1,502
FORM 10-K