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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
6. INVESTMENTS IN AND LOANS TO AFFILIATES
The table below presents the carrying amount of investments in and loans to affiliates as of June 30, 2009 and 2008:
(1)
Provalliance
Empire
Education
Group, Inc.
Intelligent
Nutrients, LLC
MY Style
PureBeauty/
Beauty First
(1)
Hair Club
for
Men, Ltd. Total
(Dollars in thousands)
Balance at June 30, 2007
$
—
$
—
$
8,114
$
8,080
$
4,019
$
4,955
$
25,168
Investment acquired
109,915
72,337
—
—
—
—
182,252
Acquisition of remaining interest
—
—
—
—
(
3,883
)
—
(
3,883
)
Loans to affiliates
—
36,400
—
—
—
—
36,400
Equity in income (loss) of affiliated companies, net of
income taxes
1,767
802
(1,584
)
—
(
136
)
—
849
Other, primarily translation rate adjustments
7,671
(232
)
(873
)
(324
)
—
74
6,316
Balance at June 30, 2008
$
119,353
$
109,307
$
5,657
$
7,756
$
—
$
5,029
$
247,102
Loans to affiliates
—
15,000
3,000
2,971
—
—
20,971
Payment of loans by affiliates
—
(
15,000
)
—
(
613
)
—
—
(
15,613
)
Equity in income (loss) of affiliated companies, net of
income taxes(3)
1,979
2,065
(541
)
(1,331
)
—
600
2,772
Impairment(2)
(25,732
)
—
(
4,800
)
—
—
—
(
30,532
)
Cash dividends received
—
—
—
—
—
(
906
)
(906
)
Other, primarily translation rate adjustments(4)
(13,465
)
79
(3,316
)
3,935
—
373
(12,394
)
Balance at June 30, 2009
$
82,135
$
111,451
$
—
$
12,718
$
—
$
5,096
$
211,400
Percentage ownership at June 30, 2009
30.0
%
55.1
%
49.0
%
—
—
50.0
%
In February 2008, the Company acquired 100 percent interest in PureBeauty/BeautyFirst. PureBeauty/BeautyFirst was sold in the Trade
Secret transaction that occurred on February 16, 2009.
(2) During fiscal year 2009, the Company recorded impairments of $25.7 and $7.8 million ($4.8 million net of tax) related to its interest in
Provalliance and Intelligent Nutrients, LLC, respectively.
(3)
Equity in (loss) income of affiliated companies, net of income taxes per the Consolidated Statement of Operations includes $2.8 million
in equity income, $30.5 million of impairments and $2.1 million for the increase in the Provalliance equity put valuation.
(4)
The $3.3 million of other change for Intelligent Nutrients, LLC relates to the tax affect of the fiscal year 2009 impairment.
105