Supercuts 2008 Annual Report Download - page 89

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
3. ACQUISITIONS, INVESTMENTS IN AFFILIATES AND LOANS (Continued)
The value and related weighted average amortization periods for the intangibles acquired during fiscal years 2008 and 2007 business
acquisitions, in total and by major intangible asset class, are as follows:
Based upon the actual and preliminary purchase price allocations, the change in the carrying amount of the goodwill for the years ended
June 30, 2008 and 2007 is as follows:
(1)
Purchase Price Allocation
Weighted Average Amortization Period
Year Ended June 30,
(in years)
2008
2007
2008
2007
(Dollars in thousands)
Amortized intangible assets:
Brand assets and trade names
$
2,141
$
656
36
20
Customer lists
2,574
—
10
—
Franchise agreements
9,507
1,339
23
40
Lease intangibles
1,310
—
20
—
Non
-
compete agreements
193
—
3
—
School
-
related licenses
—
610
—
40
Other
389
1,859
19
15
Total
$
16,114
$
4,464
22
27
Salons
Beauty
Schools
Hair
Restoration
Centers
North America
International
Consolidated
(Dollars in thousands)
Balance at June 30, 2006
$
520,314
$
41,224
$
81,886
$
134,804
$
778,228
Goodwill acquired
47,462
1,620
1,765
(3
)
50,844
Translation rate adjustments
2,385
3,643
283
—
6,311
Impairment
—
—
(
23,000
)
—
(
23,000
)
Balance at June 30, 2007
570,161
46,487
60,934
134,801
812,383
Goodwill acquired
82,528
7,652
—
15,073
105,253
Impact of contribution of certain beauty schools(1)
13,829
13,071
(60,960
)
—
(
34,060
)
Impact of contribution of European franchise salon operations(2)
—
(
22,366
)
—
—
(
22,366
)
Translation rate adjustments
2,281
3,617
26
—
5,924
Adjustment related to FIN No. 48(3)
—
—
—
3,859
3,859
Balance at June 30, 2008
$
668,799
$
48,461
$
—
$
153,733
$
870,993
On August 1, 2007 the Company contributed its accredited cosmetology schools to Empire Education Group, Inc. The Company retained
ownership of its one North American and four United Kingdom Sassoon schools. Subsequent to August 1, 2007 results of operations and
assets for the Sassoon schools are included in the respective North American and international salon segments.
87