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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
5. GOODWILL
The table below contains details related to the Company's recorded goodwill for the years ended June 30, 2011 and 2010:
104
Salons
Hair Restoration
Centers
North America
International
Consolidated
(Dollars in thousands)
Gross goodwill at June 30, 2009
$
693,181
$
41,661
$
149,367
$
884,209
Accumulated impairment losses
(78,126
)
(41,661
)
—
(
119,787
)
Net goodwill at June 30, 2009
615,055
—
149,367
764,422
Goodwill acquired(1)
2,581
—
—
2,581
Translation rate adjustments
4,250
—
13
4,263
Resolution to pre-
acquisition income
tax contingency
—
—
1,000
1,000
Goodwill impairment(2)
(35,277
)
—
—
(
35,277
)
Gross goodwill at June 30, 2010
700,012
41,661
150,380
892,053
Accumulated impairment losses
(113,403
)
(41,661
)
—
(
155,064
)
Net goodwill at June 30, 2010
586,609
—
150,380
736,989
Goodwill acquired(1)
10,070
—
2,419
12,489
Translation rate adjustments
5,137
—
(
3
)
5,134
Goodwill impairment(3)
(74,100
)
—
—
(
74,100
)
Gross goodwill at June 30, 2011
715,219
41,661
152,796
909,676
Accumulated impairment losses
(187,503
)
(41,661
)
—
(
229,164
)
Net goodwill at June 30, 2011
$
527,716
$
—
$
152,796
$
680,512
(1) See Note 4 to the Consolidated Financial Statements.
(2) As a result of the Company's annual impairment testing of goodwill, a $35.3 million impairment charge was recorded
within continuing operations for the excess of the carrying value of goodwill over the implied fair value of goodwill for the
Regis salon concept.
(3) As a result of the Company's annual impairment testing of goodwill, a $74.1 million impairment charge was recorded
within continuing operations for the excess of the carrying value of goodwill over the implied fair value of goodwill for the
Promenade salon concept.