True Value 2007 Annual Report Download - page 51

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30 | TRUE VALUE COMPANY
N O T E S T O
CONSOLIDATED FINANCIAL STATEMENTS
($ in thousands)
2007, 2006 and 2005, respectively. Beginning in 2007, True
Value’s 401k Plan for most participants included a 100% guaran-
teed match up to a total of 5% of the participant’s annual
compensation. Also, based on True Value achieving certain
financial goals and at the discretion of the board of directors, an
additional 1% of most participants’ annual compensation could
be earned. For certain other plan participants in 2007 and for all
plan participants previous to 2007, True Value’s 401k Plan
included a guaranteed match of one-third of a participant’s con-
tribution up to a total of 2% of the participant’s annual
compensation. Also, based on True Value achieving certain
financial goals, a match of greater than one-third of a partici-
pant’s contribution could be earned. A match equaling two-thirds
of a participant’s contribution, up to a total of 4% of the partici-
pant’s annual 401k eligible compensation was earned for 2005
and 2006 and funded in March 2006 and 2007, respectively. For
2007, a match equaling up to 5% of most participants’ annual
compensation was earned and funded throughout the year
while for certain others a match equaling 100%, up to a total of
6% of the participants’ annual 401k eligible compensation was
earned and will be funded in March 2008. True Value recognized
costs of $5,134, $3,103 and $3,056 for 2007, 2006 and 2005,
respectively, for the 401k Plan.
12. ASSET SALES
On April 20, 2005, True Value sold its 640,000-square-foot East
Butler, Pennsylvania, warehouse and office facility to a third party
for a purchase price of $6,188. In the first quarter of 2005, True
Value recorded an impairment charge of $942 to write-down
this facility that was classified as held for sale to fair value. Pursu-
ant to the Purchase and Sale Agreement, True Value leased back
approximately 100,000 square feet of warehouse space through
the end of 2005 and approximately 15,000 square feet of office
space through the end of 2009 under an operating lease.
On December 28, 2005, True Value sold its 105,000-square-foot
Chicago, Illinois, oil-based paint manufacturing facility to a third
party for a purchase price of $10,125. True Value recorded a net
gain of $9,080 on the sale.
13. SEGMENT INFORMATION
True Value is principally engaged as a wholesaler of hardware
and related products and is a manufacturer of paint products.
True Value identifies segments based on management respon-
sibility and the nature of the business activities of each component
of its business. True Value measures segment earnings as oper-
ating earnings including an allocation for interest expense and
income taxes.