Annual report pursuant to Section 13 and 15(d)

Variable Interest Entity

v2.4.0.6
Variable Interest Entity
12 Months Ended
Dec. 31, 2011
Variable Interest Entity  
Variable Interest Entity

6.             Variable Interest Entity

 

The financial position and results of operations of AAP are consolidated in our financial statements based on our conclusion that AAP is a variable interest entity and because we have the ability to significantly influence the economic performance of the entity through our contractual agreement with GE.  The financial position and results of operations for AAP are reported in our recycling segment.  In fiscal year 2010, we contributed equity of $2,000 to AAP, which included $475 we loaned to 4301 prior to commencing operations on February 8, 2010.

 

The following table summarizes the assets and liabilities of AAP as of December 31, 2011 and January 1, 2011:

 

 

 

December 31,
2011

 

January 1,
2011

 

Assets

 

 

 

 

 

Current assets

 

$

1,134

 

$

439

 

Property and equipment, net

 

9,419

 

8,430

 

Goodwill

 

1,082

 

1,082

 

Other assets

 

136

 

256

 

Total assets

 

$

11,771

 

$

10,207

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

Accounts payable

 

$

858

 

$

737

 

Accrued expenses

 

250

 

304

 

Current maturities of long-term debt obligations

 

593

 

4,000

 

Long-term debt obligations, net of current maturities

 

5,022

 

832

 

Other long-term liabilities (a)

 

647

 

455

 

Total liabilities

 

$

7,370

 

$

6,328

 

 

(a) Other long-term liabilities represent outstanding loans from ARCA and are eliminated in consolidation.

 

The following table summarizes the operating results of AAP for fiscal years 2011 and 2010:

 

 

 

For the fiscal year ended

 

 

 

December 31,
2011

 

January 1,
2011

 

Revenues

 

$

11,337

 

$

7,562

 

Gross profit

 

1,373

 

199

 

Operating income (loss)

 

869

 

(58

)

 

The following table summarizes the allocation of the purchase price to the fair value of the assets acquired and liabilities assumed as a result of consolidating AAP as a variable interest entity.

 

 

 

February 8,
2010

 

Assets

 

 

 

Current assets

 

$

6

 

Property and equipment

 

3,123

 

Goodwill

 

1,082

 

Other assets (b)

 

1,555

 

Total assets acquired

 

5,766

 

Liabilities

 

 

 

Accounts payable

 

(466

)

Accrued expenses

 

(97

)

Current maturities of long-term debt obligations

 

(376

)

Long-term debt obligations, net of current maturities

 

(827

)

Total liabilities assumed

 

(1,766

)

Equity contribution from ARCA

 

(2,000

)

Net assets acquired

 

$

2,000

 

 

(b) Other assets include a receivable of $1,525 from ARCA related to equity contributions made in March 2010 and April 2010, which is eliminated upon consolidation.