Supercuts 2009 Annual Report Download - page 95

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Table of Contents
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
1. BUSINESS DESCRIPTION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Comprehensive Income:
Components of comprehensive income for the Company include net income, changes in fair value of financial instruments designated as
hedges of interest rate or foreign currency exposure and foreign currency translation charged or credited to the cumulative translation account
within shareholders' equity. These amounts are presented in the Consolidated Statements of Changes in Shareholders' Equity and Comprehensive
Income.
The Company adopted SFAS No. 158, Employers' Accounting for Defined Benefit Pension and other Postretirement Plans
(SFAS No. 158)
during fiscal year 2007. SFAS No. 158 requires balance sheet recognition of the funded status for all pension and postretirement benefit plans.
SFAS No. 158 requires recognition of changes in funded status in the year in which the changes occur through comprehensive income.
Derivative Instruments:
The Company may manage its exposure to interest rate and foreign currency risk within the Consolidated Financial Statements through the
use of derivative financial instruments, according to its hedging policy. The Company does not use derivatives with a level of complexity or with
a risk higher than the exposures to be hedged and does not hold or issue derivatives for trading or speculative
93
2009
2008
2007
(Dollars in thousands)
Accumulated Other Comprehensive Income, balance at July 1
$
101,973
$
78,278
$
58,066
Cumulative translation adjustment:
Balance at July 1
111,073
83,953
63,080
Pre
-
tax amount
(47,666
)
28,804
20,873
Tax affect
—
(
1,684
)
—
Net of tax amount
(47,666
)
27,120
20,873
Balance at June 30
63,407
111,073
83,953
Changes in fair market value of financial instruments designated as cash flow hedges:
Balance at July 1
(8,791
)
(6,234
)
(5,014
)
Pre
-
tax amount
(3,421
)
(3,811
)
(1,554
)
Tax affect
1,309
1,254
334
Net of tax amount
(2,112
)
(2,557
)
(1,220
)
Balance at June 30
(10,903
)
(8,791
)
(6,234
)
Recognition of deferred compensation:
Balance at July 1
(309
)
559
—
Pre
-
tax amount
(514
)
(1,330
)
891
Tax affect
174
462
(332
)
Net of tax amount
(340
)
(868
)
559
Balance at June 30
(649
)
(309
)
559
Accumulated Other Comprehensive Income,balance at June 30
$
51,855
$
101,973
$
78,278