Supercuts 2008 Annual Report Download - page 88

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. ACQUISITIONS, INVESTMENTS IN AFFILIATES AND LOANS (Continued)
Based upon purchase price allocations, the components of the aggregate purchase prices of the acquisitions made during fiscal years 2008,
2007, and 2006 and the allocation of the purchase prices were as follows:
Total Acquisitions
(1)
2008 2007 2006
(Dollars in thousands)
Components of aggregate purchase prices:
Cash
$
132,971
$
68,747
$
155,481
Note receivable applied to purchase price
10,000
—
—
Common stock
4
—
—
Liabilities assumed or payable
2,602
558
2,127
$
145,577
$
69,305
$
157,608
Allocation of the purchase prices:
Current assets
$
16,631
$
3,876
$
12,516
Property and equipment
21,398
10,086
14,422
Deferred income tax asset
1,789
1,200
—
Other noncurrent assets
473
50
4,442
Goodwill
105,252
50,844
127,337
Identifiable intangible assets
16,114
4,464
17,251
Accounts payable and accrued expenses
(15,526
)
(412
)
(17,121
)
Deferred income tax liability
—
(
436
)
(4,656
)
Other noncurrent liabilities
(3,449
)
(367
)
(213
)
Settlement of contingent purchase price(1)
2,895
—
3,630
$
145,577
$
69,305
$
157,608
During fiscal years 2005 and 2004, the Company guaranteed that the stock issued in conjunction with one of its acquisitions during their
respective fiscal years would reach a certain market price by the fourth quarter of fiscal year 2008 and 2006. The guaranteed stock price
was factored into the purchase price at the acquisition date by recording an increase to additional paid-in-capital for the differential
between the stock price at the date of acquisition and the guaranteed stock price. However, the stock did not reach this price during the
agreed upon time frame. Therefore, the Company was obligated to issue $2.9 and $3.6 million in additional consideration to the sellers
during the fourth quarter of fiscal year 2008 and 2006, respectively. The $2.9 and $3.6 million in fiscal years 2008 and 2006,
respectively, represents the difference between the guaranteed stock price and the actual stock price on the last day of the agreed upon
time frame, and was recorded as a reduction to additional paid-in capital.
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