GNC 2009 Annual Report Download - page 77

Table of Contents
GENERAL NUTRITION CENTERS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
March 16, 2007
(in thousands)
Assets:
Current assets $ 480,230
Goodwill 626,259
Other intangible assets 901,661
Property, plant and equipment 181,765
Other assets 16,813
Total assets $ 2,206,728
Liabilities:
Current liabilities 232,943
Long-term debt 10,773
Deferred tax liability 257,732
Other liabilities 52,321
Total liabilities $ 553,769
Fair value of net assets acquired $ 1,652,959
NOTE 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation
The accompanying consolidated financial statements and footnotes have been prepared by the Company in accordance with accounting
principles generally accepted in the United States of America and with the instructions to Form 10-K and Regulation S-X. The Company's
normal reporting period is based on a calendar year.
The financial statements as of December 31, 2008 and 2007 reflect periods subsequent to the Merger and include the accounts of the
Company and its wholly owned subsidiaries. Included for the year ended 2008 and for the period from March 16, 2007 through December 31,
2007 are fair value adjustments to assets and liabilities, including inventory, goodwill, other intangible assets and property, plant and
equipment. Accordingly, the accompanying financial statements for the periods prior to the Merger are labeled as "Predecessor" and the
periods subsequent to the Merger are labeled as "Successor".
Summary of Significant Accounting Policies
Principles of Consolidation. The consolidated financial statements include the accounts of the Company and all of its subsidiaries. All
material intercompany transactions have been eliminated in consolidation.
The Company has no relationships with unconsolidated entities or financial partnerships, such as entities often referred to as structured
finance or special purpose entities, which would have been established for the purpose of facilitating off balance sheet arrangements, or other
contractually narrow or limited purposes.
Use of Estimates. The preparation of financial statements in conformity with generally accepted accounting principles requires
management to make estimates and assumptions. Accordingly, these 71