Supercuts 2007 Annual Report Download - page 109

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
The accounting policies of the reportable operating segments are the same as those described in Note 1 to the Consolidated Financial
Statements. Corporate assets detailed below are primarily comprised of property and equipment associated with the Company’s headquarters
and distribution centers, corporate cash, inventories located at corporate distribution centers, deferred income taxes, franchise receivables and
other corporate assets. Intersegment sales and transfers are not significant. Summarized financial information concerning the Company’s
reportable operating segments is shown in the following table as of June 30, 2007, 2006, and 2005:
108
For the Year Ended June 30, 2007
Salons
Beauty
Hair
Restoration
Unallocated
North America
International
Schools
Centers
Corporate
Consolidated
(Dollars in thousands)
Revenues:
Service
$
1,512,287
$
151,057
$
76,556
$
53,902
$
—
$
1,793,802
Product
614,377
65,675
9,071
63,157
—
752,280
Royalties and fees
38,766
36,698
—
5,042
—
80,506
2,165,430
253,430
85,627
122,101
—
2,626,588
Operating expenses:
Cost of service
872,813
80,256
32,583
29,129
—
1,014,781
Cost of product
317,214
38,957
5,462
18,859
—
380,492
Site operating expenses
174,733
11,989
16,366
5,013
—
208,101
General and administrative
119,204
45,179
9,848
27,191
127,222
328,644
Rent
314,718
50,410
9,272
6,535
1,885
382,820
Depreciation and
amortization
84,250
9,091
3,355
9,813
17,628
124,137
Goodwill impairment
—
—
23,000
—
—
23,000
Total operating expenses
1,882,932
235,882
99,886
96,540
146,735
2,461,975
Operating income (loss)
282,498
17,548
(14,259
)
25,561
(146,735
)
164,613
Other income (expense):
Interest
—
—
—
—
(
41,770
)
(41,770
)
Other, net
—
—
—
—
5,113
5,113
Income (loss) before
income taxes
$
282,498
$
17,548
$
(14,259
)
$
25,561
$
(183,392
)
$
127,956
Total assets
$
1,070,776
$
210,629
$
163,818
$
262,295
$
424,596
$
2,132,114
Long
-
lived assets
334,568
34,569
16,664
9,461
98,823
494,085
Capital expenditures
49,294
8,057
2,493
4,590
25,645
90,079
Purchases of salon assets
63,754
2,895
(73
)
2,171
—
68,747