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ACQUISITIONS
9 Months Ended
Nov. 02, 2013
ACQUISITIONS  
ACQUISITIONS

NOTE 3—ACQUISITIONS

 

During the third quarter of Fiscal 2013, the Company paid $10.7 million to purchase 18 Service & Tire Centers located in Southern California from AKH Company, Inc., which had operated under the name Discount Tire Centers.  This acquisition was financed using cash on hand.  Collectively, the acquired stores produced approximately $26.1 million in sales annually based on unaudited pre-acquisition historical information.  The results of operations of these acquired stores are included in the Company’s results of operations as of the date of acquisition.

 

The Company expensed all costs related to this acquisition during Fiscal 2013.  The total costs related to this acquisition were immaterial and are included in the consolidated statement of operations within selling, general and administrative expenses.

 

The purchase price of the acquisition was preliminarily allocated to tangible assets of approximately $0.8 million and $0.1 million in intangible assets, with the remaining $9.9 million recorded as goodwill.  The goodwill was primarily related to growth opportunities.  The Company believes that any subsequent adjustments to the purchase price allocation will not be material.

 

As the acquisition was immaterial to the Company’s operating results for the thirteen and thirty-nine week periods ended November 2, 2013, pro forma results of operations are not disclosed.