Supercuts 2009 Annual Report Download - page 100

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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2. DISCONTINUED OPERATIONS (Continued)
product to the buyer of Trade Secret and provide certain administrative services for a transition period of six months following the date of sale
with possible extension to not more than eleven months. Under this agreement, the Company recognized $32.2 million of product revenues on
the supply of product sold to the purchaser of Trade Secret and $2.9 million of other income related to the administrative services during the year
ended June 30, 2009. The Company has a $19.1 million outstanding receivable with the buyer of Trade Secret as of June 30, 2009.
As the proceeds the Company received from the sale of Trade Secret were negligible, the Company recognized impairment charges within
discontinued operations during the year ended June 30, 2009 set forth in the following table:
The (loss) income from discontinued operations are summarized below:
The $0.2 million loss from discontinued operations recorded within the fourth fiscal quarter of 2009 was primarily related to the write-
off of
distribution center inventories that had been solely used to support the Trade Secret operations.
98
For the Year Ended
June 30, 2009
(Dollars in thousands)
Inventories
$
44,992
Property and equipment, net
57,328
Goodwill
78,126
Other intangibles, net
7,187
Other assets
4,206
Other liabilities
(8,550
)
Impairment loss portion of loss from discontinued operations before income taxes
$
183,289
For the Years Ended June 30,
2009
2008
2007
(Dollars in thousands)
Revenues
$
163,436
$
257,474
$
253,250
(Loss) income from discontinued operations, before income taxes
(190,433
)
865
23,044
Income tax benefit (provision) on discontinued operations
58,997
438
(7,613
)
(Loss) income from discontinued operations, net of income taxes
$
(131,436
)
$
1,303
$
15,431