GNC 2010 Annual Report Download - page 125

Table of Contents
GENERAL NUTRITION CENTERS, INC. AND SUBSIDIARIES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
NOTE 25. SUPPLEMENTAL GUARANTOR INFORMATION
As of December 31, 2009 the Company's debt included its 2007 Senior Credit Facility, Senior Toggle Notes and 10.75% Senior
Subordinated Notes. The 2007 Senior Credit Facility has been guaranteed by GNC Corporation and the Company's existing and future direct
and indirect material domestic subsidiaries. The Senior Toggle Notes are general non collateralized obligations of the Company, are effectively
subordinated to the Company's 2007 Senior Credit Facility to the extent of the value of the collateral securing the 2007 Senior Credit Facility
and are senior in right of payment to all existing and future subordinated obligations of the Company, including its 10.75% Senior Subordinated
Notes. The Senior Toggle Notes are unconditionally guaranteed on a non collateralized basis by all of the Company's existing and future direct
and indirect material domestic subsidiaries. The 10.75% Senior Subordinated Notes are general non collateralized obligations and are
guaranteed on a senior subordinated basis by the Company's existing and future direct and indirect material domestic subsidiaries and rank
junior in right of payment to the Company's 2007 Senior Credit Facility and Senior Toggle Notes. The guarantors are the same for the 2007
Senior Credit Facility, Senior Toggle Notes and 10.75% Senior Subordinated Notes. Non-guarantor subsidiaries include the remaining direct
and indirect foreign subsidiaries. The subsidiary guarantors are 100% owned, directly or indirectly, by the Company. The guarantees are full
and unconditional and joint and several. Investments in subsidiaries are accounted for under the equity method of accounting.
Presented below are condensed consolidated financial statements of the Company as the parent/issuer, and the combined guarantor
and non-guarantor subsidiaries as of December 31, 2009 and 2008, and for the year ended December 31, 2009 and 2008, the period from
March 16, 2007 to December 31, 2007, and the period ended March 15, 2007. Intercompany balances and transactions have been eliminated.
The Company reorganized its corporate structure effective January 1, 2009. Certain guarantor subsidiaries were merged into General
Nutrition Centers, Inc. (the "Parent/Issuer"), which remained the Parent/Issuer after the reorganization; certain other guarantor subsidiaries
were merged into each other. Supplemental guarantor information for periods prior to January 1, 2009 reflect the corporate structure that
existed prior to the reorganization. 119