GNC 2012 Annual Report Download - page 90

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Table of Contents
NOTE 2. BASIS OF PRESENTATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Recently Issued Accounting Pronouncements
In September 2011, the FASB issued updated guidance on the periodic testing of goodwill for impairment. This guidance will allow companies to assess
qualitative factors to determine if it is more likely than not that goodwill will be impaired and whether it is necessary to perform the two-step goodwill
impairment test required under current accounting standards. This new guidance is effective for the Company for fiscal years beginning after December 15,
2011, with early adoption permitted. The Company adopted this guidance in the fourth quarter of 2011 and this adoption did not have a material effect on
Company's consolidated financial statements.
NOTE 3. INVENTORIES, NET
The net carrying value of inventories consisted of the following:
December 31,
2011 2010
(in thousands)
Finished product ready for sale $ 354,913 $ 319,212
Work-in-process, bulk product and raw materials 61,684 57,165
Packaging supplies 7,013 5,572
$ 423,610 $ 381,949
NOTE 4. INCOME TAXES
Income before income taxes consisted of the following components:
Year ended December 31,
2011 2010 2009
(in thousands)
Domestic $ 206,971 $ 146,314 $ 104,003
Foreign 633 716 7,083
Total income before income taxes $ 207,604 $ 147,030 $ 111,086
85