GNC 2008 Annual Report Download - page 89
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Table of Contents
GENERAL NUTRITION CENTERS, INC. AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The following table summarizes the Company's goodwill activity.
Manufacturing/
Retail Franchising Wholesale Total
(in thousands)
Predecessor
Balance at December 31, 2005 $ 22,970 $ 56,693 $ 446 $ 80,109
Additions: Acquired franchise stores 913 — — 913
Reclassification: Due to franchise store acquisitions 2,795 (2,795) — —
Balance at December 31, 2006 $ 26,678 $ 53,898 $ 446 $ 81,022
Acquired franchise stores 161 — — 161
Balance at March 15, 2007 $ 26,839 $ 53,898 $ 446 $ 81,183
Successor
Balance at March 16, 2007 $ 238,296 $ 126,971 $ 209,356 $ 574,623
Purchase accounting adjustments 24,149 (9,668) (6,515) 7,966
Other adjustments 43,670 — — 43,670
Acquired franchise stores 11 — — 11
Balance at December 31, 2007 $ 306,126 $ 117,303 $ 202,841 $ 626,270
During the period from March 16, 2007 to December 31, 2007, the Company made purchase accounting adjustments, which consisted
principally of a $12.0 million adjustment related to pre-acquisition contingencies. The remaining adjustments related to finalizing the valuation of
intangible assets and property, plant, and equipment.
During the period from March 16, 2007 to December 31, 2007, the Company recorded adjustments of $43.7 million primarily due to
$45.3 million in adjustments to correct deferred taxes related to the Merger. This adjustment resulted in a corresponding increase to goodwill.
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