Supercuts 2012 Annual Report Download - page 44

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Table of Contents
• The Company recorded incremental depreciation expense of $16.2 million ($10.2 million net of tax or $0.18 per diluted share)
associated with the adjustment to the useful life of the Company's POS system.
• During fiscal year 2012, the Company reduced the home office workforce by approximately 120 employees. The Company
recorded $9.8 million in senior management restructuring and other severance charges. In addition the Company recorded
$2.8 million in other restructuring charges associated with one-time costs with implementing the Company's new strategy.
• The Company recorded $1.8 million in deferred compensation expense associated with amending the deferred compensation
contracts such that the benefits are based on years of service and employees' compensation as of June 30, 2012.
• The Company recorded charges of $4.9 million associated with professional fees incurred in connection with the contested
proxy and the exploration of alternatives for non-core assets.
• The Company recorded a $1.1 million favorable legal settlement during fiscal year 2012.
• During fiscal year 2012, the Company recorded a $1.1 million tax benefit in discontinued operations related to the release of tax
reserves associated with the disposition of the Trade Secret salon concept.
• The annual effective income tax rate of 5.8 percent was negatively impacted by the goodwill impairment charges which are
partially non-deductible for tax purposes. This resulted in the Company recording less of a tax benefit on the pre-tax loss than
what would normally be expected utilizing the Company's historical range of tax rates.
RESULTS OF OPERATIONS
The following discussion of results of operations will reflect results from continuing operations. Discontinued operations will be discussed
at the end of this section.
Consolidated Results of Operations
The following table sets forth, for the periods indicated, certain information derived from our Consolidated Statement of Operations in
Item 8, expressed as a percent of revenues. The percentages are computed as a percent of total revenues, except as noted.
42