4. ACQUISITION On December 20, 2013, the Company acquired eleven Dominick s stores from Safeway in a $36 million cash transaction (the  Chicago Stores Acquisition ). As a result of the transaction, the Company assumed the operating leases for ten of the stores and a capital lease liability for one store. As of September 27, 2014, the Company has re-opened ten of these stores under the Company s Mariano s banner and the Company expects that the additional store will be converted to the Mariano s banner and will open during the fourth quarter of Fiscal 2014. The transaction enables the Company to expand its presence in the Chicago market and accelerate the number of Mariano s locations, the Company s growth banner. The Company paid an amount in excess of the fair value of the assets acquired and recorded goodwill of approximately $4.3 million. The amount of goodwill recorded in connection with the transaction is deductible for tax purposes over a 15-year period. The transaction was accounted for as a business combination under Accounting Standards Codification 805. As such, the purchase price was allocated based on a fair value appraisal by a third party valuation firm. The fair value calculations of property under capital lease and the favorable lease rights were based on estimated market rents for those leased properties, which the Company considers to be Level 2 within the fair value hierarchy. The fair value calculations of the customer lists were based on the estimated profitability of the sales associated with the acquired customers. The fair value calculations of the equipment and leasehold improvements were based on the estimated replacement cost. The Company considers the inputs used in the fair value calculations of the equipment, leasehold improvements and customer lists to be Level 3 within the fair value hierarchy. The purchase price was allocated as follows (in thousands): Consideration Purchase price $ 36,000 Capital lease liability assumed 7,765 Total Consideration $ 43,765 Assets Acquired Equipment