Sally Beauty Supply 2011 Annual Report Download - page 114

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Sally Beauty Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
Fiscal Years ended September 30, 2011, 2010 and 2009
Accumulated Other Comprehensive (Loss) Income
The components of accumulated other comprehensive (loss) income at September 30, 2011 and 2010, are
as follows (in thousands):
As of
September 30,
2011 2010
Cumulative foreign currency translation adjustments(a) ...... $(18,724) $(10,772)
Deferred (losses) on interest rate swaps, net of tax(b) ....... (3,947) (9,504)
Total accumulated other comprehensive (loss) income, net of
tax........................................... $(22,671) $(20,276)
(a) There were no income tax amounts related to foreign currency translation adjustments at
September 30, 2011 and 2010.
(b) Amounts are net of income tax of $2.5 million and $6.0 million at September 30, 2011 and
2010, respectively. Please see Note 16 for more information about the Company’s interest
rate swaps.
4. Recent Accounting Pronouncements and Accounting Changes
Recent Accounting Pronouncements
We have not yet adopted and are currently assessing any potential effect of the following recent
pronouncements on our consolidated financial statements:
In December 2010, the Financial Accounting Standards Board (‘‘FASB’’) issued Accounting Standards
Update (‘‘ASU’’) No. 2010-28 which amended Accounting Standards Codification (‘‘ASC’’) Topic 350,
Intangibles-Goodwill and Other. This amendment modifies the goodwill impairment test for reporting units
with a zero or negative carrying amount, by requiring that Step 2 of the goodwill impairment test be
performed for such reporting units if it is more likely than not that an impairment of goodwill exists. For
public companies, this amendment is effective for fiscal years, and interim periods within those fiscal years,
beginning after December 15, 2010. Early application is not permitted.
In December 2010, the FASB issued ASU No. 2010-29 which amended ASC Topic 805, Business
Combinations (‘‘ASC 805’’). This amendment requires that a public company that enters into business
combinations that are material on an individual or aggregate basis disclose certain pro forma information
for the current and the immediately preceding fiscal year. This amendment also expands the supplemental
pro forma disclosures to include a description of the nature and amount of material, non-recurring pro
forma adjustments directly attributable to such business combination or business combinations. This
amendment is effective prospectively for business combinations consummated on or after the first annual
reporting period beginning on or after December 15, 2010. Early application is permitted.
In May 2011, the FASB issued ASU No. 2011-04 which amended ASC Topic 820, Fair Value Measurements
and Disclosures (‘‘ASC 820’’). When effective, this amendment will change the title of ASC 820 to ‘‘Fair
Value Measurement’’ and will adopt fair value measurement and disclosure guidance that is generally
consistent with the corresponding International Financial Reporting Standards (‘‘IFRS’’) guidance. More
specifically, this amendment will change certain requirements for measuring fair value or for disclosing
information about fair value measurements or, alternatively, clarify the FASB’s intent about the
F-14