O'Reilly Auto Parts 2014 Annual Report Download - page 59

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FORM 10-K
52
NOTE 3 – PROPERTY AND EQUIPMENT
The following table identifies the types of property and equipment included in the accompanying consolidated financial statements as of
December 31, 2014 and 2013 (in thousands, except useful lives):
Original Useful Lives December 31, 2014 December 31, 2013
Land $ 527,471 $ 457,858
Buildings and building improvements 15 – 39 years 1,418,479 1,197,369
Leasehold improvements 3 – 25 years 523,550 483,578
Furniture, fixtures and equipment 3 – 20 years 1,052,846 960,928
Vehicles 5 – 10 years 279,874 251,505
Construction in progress 191,289 255,599
Total property and equipment 3,993,509 3,606,837
Less: accumulated depreciation and amortization 1,334,949 1,181,734
Net property and equipment $ 2,658,560 $ 2,425,103
The Company recorded depreciation and amortization expense related to property and equipment in the amounts of $193.4 million, $183.2
million and $176.7 million for the years ended December 31, 2014, 2013 and 2012, respectively.
The contractual terms of all original and amended vehicle capital lease agreements expired in the fourth quarter of 2013. The vehicles
under these expired capital lease agreements were either disposed, purchased by the Company or remain under short-term monthly
agreements with the original lessor. The gross value of capital lease assets included in the "Vehicles" amount of the above table was $7.0
million at December 31, 2013. As of December 31, 2013, the Company recorded accumulated amortization on these capital lease assets
in the amounts of $7.0 million, all of which was included in "accumulated depreciation and amortization" in the above table.
NOTE 4 – GOODWILL AND OTHER INTANGIBLES
Goodwill:
Goodwill is reviewed for impairment annually during the fourth quarter, or more frequently if events or changes in business conditions
indicate that impairment may exist. Goodwill is not amortizable for financial statement purposes. During the year ended December 31,
2014, the Company recorded an increase in goodwill of $0.2 million, resulting from adjustments to purchase price allocations related to
small acquisitions. During the year ended December 31, 2013, the Company recorded a decrease in goodwill of $2.2 million, resulting
from adjustments to purchase price allocations related to small acquisitions. The Company did not record any goodwill impairment
during the years ended December 31, 2014 or 2013.
The following table identifies the changes in goodwill for the years ended December 31, 2014 and 2013 (in thousands):
Balance at December 31, 2012 $ 758,410
Activity (2,185)
Balance at December 31, 2013 756,225
Activity 159
Balance at December 31, 2014 $ 756,384
As of December 31, 2014 and 2013, other than goodwill, the Company did not have any other indefinite lived intangible assets.