Sally Beauty Supply 2011 Annual Report Download - page 123

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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
11. Goodwill and Intangible Assets
The changes in the carrying amounts of goodwill by operating segment for the fiscal years 2010 and 2011
are as follows (in thousands):
Sally Beauty Beauty Systems
Supply Group Total
Balance at September 30, 2009 ........ $ 73,208 $420,927 $494,135
Acquisitions and purchase price
adjustments .................... 8,092 2,568 10,660
Reclassifications ................... (2,780) (22,920) (25,700)
Foreign currency translation .......... (2,221) 1,366 (855)
Balance at September 30, 2010 ........ 76,299 401,941 478,240
Acquisitions and purchase price
adjustments .................... 333 29,321 29,654
Foreign currency translation .......... (1,096) (925) (2,021)
Balance at September 30, 2011 ........ $ 75,536 $430,337 $505,873
As described in Note 19, during the fiscal year 2010, $5.2 million of the increase in Sally Beauty Supply’s
goodwill was attributable to the acquisition of Sinelco Group NV (‘‘Sinelco’’) in December 2009. The
remaining increase in Sally Beauty Supply’s goodwill in the amount of $2.9 million and the $2.6 million
increase in BSG’s goodwill during the fiscal year 2010 were attributable to other acquisitions which were
not individually material and to net purchase price adjustments. During the fiscal year 2010, intangible
assets subject to amortization in the amount of $24.9 million were also recorded in connection with certain
2009 acquisitions, including the September 2009 acquisition of Schoeneman Beauty Supply, Inc.
(‘‘Schoeneman’’), and intangible assets with indefinite lives in the amount of $0.8 million were recorded in
connection with such 2009 acquisitions. These amounts were previously reported in Goodwill pending
completion of the final valuations of the assets acquired and liabilities assumed.
As described in Note 19, during the fiscal year 2011, $25.3 million of the increase in BSG’s goodwill was
attributable to the acquisition of Aerial Company, Inc. (‘‘Aerial’’) on October 1, 2010. The remaining
increase in BSG’s goodwill in the amount of $4.0 million and the increase in Sally Beauty Supply’s goodwill
in the amount of $0.3 million during the fiscal year 2011 was attributable to acquisitions which were not
individually material and/or to net purchase price adjustments.
F-23