GNC 2011 Annual Report Download - page 115
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Table of Contents
NOTE 20. FRANCHISE REVENUE (Continued)
contract period is renewed. The Company recognized initial franchise fees of $2.8 million, $2.4 million, and $3.3 million for the years ended December 31,
2010, 2009 and 2008, respectively.
The following is a summary of the Company's franchise revenue by type:
Years Ended
December 31,
2010 December 31,
2009 December 31,
2008
(in thousands)
Product sales $ 242,160 $ 217,920 $ 209,662
Royalties 38,722 35,561 35,147
Franchise fees 5,646 4,570 5,676
Other 7,249 6,117 7,535
Total franchise revenue $ 293,777 $ 264,168 $ 258,020
NOTE 21. SUPPLEMENTAL CASH FLOW INFORMATION
The Company remitted cash payments for federal and state income taxes of $50.8 million, $16.0 million, and $18.1 million for the years ended
December 31, 2010, 2009 and 2008, respectively.
The Company remitted cash payments for interest expense related to outstanding debt of $61.9 million, $66.7 million, and $80.1 million for the years
ended December 31, 2010, 2009 and 2008 respectively.
NOTE 22. RETIREMENT PLANS
The Company sponsors a 401(k) defined contribution savings plan covering substantially all employees. Full time employees who have completed
30 days of service and part time employees who have completed 1,000 hours of service are eligible to participate in the plan. The plan provides for employee
contributions of 1% to 80% of individual compensation into deferred savings, subject to IRS limitations. The plan provides for Company contributions upon
the employee meeting the eligibility requirements. The Company match consists of both a fixed and a discretionary match which is based on a specified
financial target for all participants in the plan. The fixed match is 50% on the first 3% of the salary that an employee defers and the discretionary match could
be up to an additional 100% match on the 3% deferral. A discretionary match can be approved at any time by the Company.
An employee becomes vested in the Company match portion as follows:
Years of Service Percent
Vested
0-1 0%
1-2 33%
2-3 66%
3+ 100%
The Company made cash contributions of $1.3 million, $1.2 million, and $1.2 million for the years ended December 31, 2010, 2009 and 2008,
respectively. In addition, the Company made a discretionary match for the 2008 plan year of $0.6 million in March 2009, for the 2009 plan year of
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