Supercuts 2010 Annual Report Download - page 105

Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. ACQUISITIONS (Continued)
Based upon purchase price allocations, the components of the aggregate purchase prices of the acquisitions made during fiscal years 2010,
2009, and 2008 and the allocation of the purchase prices were as follows:
101
2010 2009 2008
(Dollars in thousands)
Components of aggregate
purchase prices:
Cash
$
3,664
$
40,051
$
132,971
Note receivable applied to
purchase price
—
—
10,000
Common stock
—
—
4
Liabilities assumed or
payable
—
75
2,602
$
3,664
$
40,126
$
145,577
Allocation of the purchase
prices:
Current assets
$
178
$
1,337
$
16,631
Property and equipment
873
5,989
21,398
Deferred income tax asset
—
1,787
1,789
Other noncurrent assets
—
—
473
Goodwill
2,581
30,812
105,252
Identifiable intangible assets
134
1,322
16,114
Accounts payable and
accrued expenses
(102
)
(818
)
(15,526
)
Deferred income tax liability
—
—
—
Other noncurrent liabilities
—
(
303
)
(3,449
)
Settlement of contingent
purchase price(1)
—
—
2,895
$
3,664
$
40,126
$
145,577
(1) During fiscal years 2005, the Company guaranteed that the stock issued in conjunction with one of its
acquisitions would reach a certain market price by the fourth quarter of fiscal year 2008. The guaranteed
stock price was factored into the purchase price at the acquisition date by recording an increase to
additional paid-in-capital for the differential between the stock price at the date of acquisition and the
guaranteed stock price. However, the stock did not reach this price during the agreed upon time frame.
Therefore, the Company was obligated to issue $2.9 million in additional consideration to the sellers during
the fourth quarter of fiscal year 2008. The $2.9 million in fiscal year 2008 represents the difference
between the guaranteed stock price and the actual stock price on the last day of the agreed upon time
frame, and was recorded as a reduction to additional paid
-
in capital.