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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, 2012 and 2011:
104
Salons
Hair
Restoration
Centers
North America International Consolidated
(Dollars in thousands)
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(2)
(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
Goodwill acquired(1)
4,978
—
—
4,978
Translation rate adjustments
(2,731
)
—
6
(2,725
)
Goodwill impairment(3)(4)
(67,684
)
—
(
78,426
)
(146,110
)
Gross goodwill at June 30, 2012
717,466
41,661
152,802
911,929
Accumulated impairment losses
(255,187
)
(41,661
)
(78,426
)
(375,274
)
Net goodwill at June 30, 2012
$
462,279
$
—
$
74,376
$
536,655
(1) See Note 4 to the Consolidated Financial Statements.
(2) 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.
(3)
As a result of the Company's interim impairment testing of goodwill during the three months ended December 31, 2011, a
$78.4 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 Hair Restoration Centers reporting unit.
(4) As a result of the Company's annual impairment testing of goodwill, a $67.7 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.