Asset Impairments

5 Months Ended

Feb. 09, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Note K – Asset Impairments

During the second quarter of fiscal 2018, the Company recorded impairment charges related to its IMC and AutoAnything businesses totaling $193.2 million as the Company determined that the approximate fair value less costs to sell the businesses was significantly lower than the carrying value of the net assets based on recent offers received for these businesses as of the quarter ended February 10, 2018.

The impairment charge for the IMC business, which was reflected as a component of Auto Parts Locations in the Company’s segment reporting, included

$48.3 million related to inventory, $24.1 million related to goodwill, $18.0 million related to property and equipment, and $3.2

million related to other intangible assets. The impairment charge for AutoAnything, which was reflected as a component of the Other category in the Company’s segment reporting, included

$65.2 million related to goodwill and $34.4

million related to other intangible assets. The Company recorded these impairment charges within Operating, selling, general and administrative expenses in its Condensed Consolidated Statements of Income for the quarter ended February 10, 2018.

The carrying value for the assets and liabilities remaining after these impairment charges totaled

$97.4 million and $59.0

million as of February 10, 2018 and was included in the Company’s Condensed Consolidated Balance Sheet at that date. The major classes of assets and liabilities included in those amounts consisted of accounts receivable of

$22.2

million, merchandise inventories of

$64.6

million and accounts payable of

$47.7

million as of February 10, 2018.

During the third quarter of fiscal 2018, the Company completed the IMC

and AutoAnything tran

sactions for total consideration that approximated the remaining net book value at the closing date.