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FORM 10-K
53
Intangibles other than goodwill:
The following table identifies the components of the Company's amortizable intangibles as of December 31, 2014 and 2013 (in thousands):
Cost of Amortizable
Intangibles
Accumulated Amortization
(Expense) Benefit Net Amortizable Intangibles
December 31,
2014
December 31,
2013
December 31,
2014
December 31,
2013
December 31,
2014
December 31,
2013
Amortizable intangible assets:
Favorable leases $ 49,780 $ 50,910 $(35,145)$(32,463)$ 14,635 $ 18,447
Non-compete agreements 617 647 (344)(428)273 219
Total amortizable intangible
assets $ 50,397 $ 51,557 $(35,489)$(32,891)$ 14,908 $ 18,666
Unfavorable leases $ 49,200 $ 49,380 $ 40,263 $ 36,758 $ 8,937 $ 12,622
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 9.4 years as of December 31, 2014. For the years ended December 31, 2014, 2013 and 2012, the Company recorded
amortization expense of $3.9 million, $4.0 million and $4.7 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 4.5 years as of December 31, 2014. For the years ended December 31, 2014, 2013 and 2012, the Company
recognized an amortized benefit of $3.7 million, $4.5 million and $5.7 million, respectively, related to these unfavorable operating leases,
which are included in "Other liabilities" on the accompanying Consolidated Balance Sheets.
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, 2014 (in thousands):
Amortization Expense Amortization Benefit Total Amortization (Expense) Benefit
2015 $ (2,656) $ 2,772 $ 116
2016 (2,301) 2,055 (246)
2017 (1,885) 1,493 (392)
2018 (1,422) 923 (499)
2019 (1,200) 712 (488)
Total $ (9,464) $ 7,955 $ (1,509)
NOTE 5 – FINANCING
The following table identifies the balances of the Company's financing facilities as of December 31, 2014 and 2013 (in thousands):
December 31,
2014 2013
Revolving Credit Facility $ — $ —
4.875% Senior Notes due 2021 (1), effective interest rate of 4.966% 497,876 497,525
4.625% Senior Notes due 2021 (2), effective interest rate of 4.648% 299,650 299,598
3.800% Senior Notes due 2022 (3), effective interest rate of 3.845% 299,109 299,011
3.850% Senior Notes due 2023 (4), effective interest rate of 3.851% $ 299,980 $ 299,976
(1) Net of unamortized discount of $2.1 million and $2.5 million as of December 31, 2014 and 2013, respectively.
(2) Net of unamortized discount of $0.4 million as of December 31, 2014 and 2013.
(3) Net of unamortized discount of $0.9 million and $1.0 million as of December 31, 2014 and 2013, respectively.
(4) Net of unamortized discount of less than $0.1 million as of December 31, 2014 and 2013.