Sally Beauty Supply 2011 Annual Report Download - page 143

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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
The accounting policies of both of our business segments are the same as described in the summary of
significant accounting policies contained in Note 2. Sales between segments, which were eliminated in
consolidation, were not material for the fiscal years ended September 30, 2011, 2010 and 2009.
Business Segments Information
Segment data for the fiscal years ended September 30, 2011, 2010 and 2009 is as follows (in thousands):
Year Ended September 30,
2011 2010 2009
Net sales:
Sally Beauty Supply .................. $2,012,407 $1,834,631 $1,695,652
BSG............................. 1,256,724 1,081,459 940,948
Total ........................... $3,269,131 $2,916,090 $2,636,600
Earnings before provision for income taxes:
Segment operating profit:
Sally Beauty Supply ................ $ 380,963 $ 320,456 $ 283,872
BSG(a) ......................... 164,660 112,495 91,604
Segment operating profit ............ 545,623 432,951 375,476
Unallocated expenses(a)(b) ............ (81,594) (79,203) (70,022)
Share-based compensation expense ....... (15,560) (12,818) (8,618)
Interest expense .................... (112,530) (112,982) (132,022)
Total ........................... $ 335,939 $ 227,948 $ 164,814
Identifiable assets:
Sally Beauty Supply .................. $ 766,896 $ 729,380 $ 652,184
BSG............................. 908,093 808,842 792,879
Sub-total ........................ 1,674,989 1,538,222 1,445,063
Shared services ..................... 53,611 51,190 45,669
Total ........................... $1,728,600 $1,589,412 $1,490,732
Depreciation and amortization:
Sally Beauty Supply .................. $ 28,763 $ 26,426 $ 24,175
BSG............................. 25,099 20,081 18,735
Corporate ......................... 5,860 4,616 4,156
Total ........................... $ 59,722 $ 51,123 $ 47,066
Capital expenditures:
Sally Beauty Supply .................. $ 34,946 $ 30,366 $ 23,203
BSG............................. 14,145 11,252 8,470
Corporate ......................... 10,864 7,084 5,647
Total ........................... $ 59,955 $ 48,702 $ 37,320
(a) For the fiscal year ended September 30, 2011, consolidated operating earnings reflect a net
favorable impact of $21.3 million; including a $27.0 million credit from a litigation settlement
and certain non-recurring charges of $5.7 million. This net benefit of $21.3 million is
reflected in the BSG segment and in unallocated expenses in the amount of $19.0 million
and $2.3 million, respectively.
(b) Unallocated expenses consist of corporate and shared costs.
F-43