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FORM 10-k
58
As of December 31, 2012 and 2011, other than goodwill, the Company did not have any other unamortizable intangible assets.
Intangibles other than goodwill:
The following table identifies the components of the Company’s amortizable intangibles as of December 31, 2012 and 2011 (in
thousands):
Cost of Amortizable
Intangibles
Accumulated Amortization
(Expense) Benefit Net Amortizable Intangibles
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
December 31,
2012
December 31,
2011
Amortizable intangible assets:
Favorable leases $ 50,910 $ 51,660 $ (28,566) $ (23,969) $ 22,344 $ 27,691
Non-compete agreements 717 793 (447) (427) 270 366
Total amortizable intangible assets $ 51,627 $ 52,453 $ (29,013) $ (24,396) $ 22,614 $ 28,057
Unfavorable leases $ 49,380 $ 49,380 $ 32,210 $ 26,560 $ 17,170 $ 22,820
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, 2012. For the years ended December 31, 2012, 2011 and 2010, the Company
recorded amortization expense of $4.7 million, $6.1 million, and $8.5 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 5.3 years as of December 31, 2012. For the years ended December 31, 2012, 2011 and
2010, the Company recognized an amortized benefit of $5.7 million, $6.7 million and $7.0 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, 2012 (in thousands):
Amortization Expense Amortization Benefit
Total Amortization
Benefit (Expense)
2013 $ (3,997) $ 4,548 $ 551
2014 (3,098) 3,642 544
2015 (2,667) 2,794 127
2016 (2,312) 2,076 (236)
2017 (1,897) 1,493 (404)
Total $ (13,971) $ 14,553 $ 582
NOTE 4 – FINANCING
The following table identifies the balances of the Company’s financing facilities as of December 31, 2012 and 2011 (in thousands):
December 31,
2012 2011
Revolving Credit Facility $ - $ -
4.875% Senior Notes due 2021 (1), effective interest rate of 4.973% 497,173 496,824
4.625% Senior Notes due 2021 (2), effective interest rate of 4.649% 299,545 299,493
3.800% Senior Notes due 2021 (3), effective interest rate of 3.845% 298,916 -
(1) Net of unamortized discount of $2.8 million and $3.2 million as of December 31, 2012 and 2011, respectively.
(2) Net of unamortized discount of $0.5 million and $0.5 million as of December 31, 2012 and 2011, respectively.
(3) Net of unamortized discount of $1.1 million as of December 31, 2012.
The following table identifies the principal maturities of the Company’s financing facilities as of December 31, 2012 (in thousands):