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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, 2011 and 2010:
105
Provalliance
Empire
Education
Group, Inc. MY Style
Hair Club
for
Men, Ltd. Total
(Dollars in thousands)
Balance at June 30, 2009
$
82,135
$
111,451
$
12,718
$
5,096
$
211,400
Payment of loans by affiliates
—
(
15,000
)
—
—
(
15,000
)
Equity in income of affiliated
companies, net of income taxes
(1)
4,134
6,431
—
909
11,474
Cash dividends received
(1,141
)
—
—
(
1,263
)
(2,404
)
Other, primarily translation
adjustments
(9,647
)
—
(
602
)
565
(9,684
)
Balance at June 30, 2010
$
75,481
$
102,882
$
12,116
$
5,307
$
195,786
Acquisition of additional interest(3)
57,301
—
—
—
57,301
Payment of loans by affiliates
—
(
15,000
)
—
—
(
15,000
)
Loans to affiliates
—
15,000
—
—
15,000
Equity in income of affiliated
companies, net of income taxes
(2)
7,752
5,463
—
567
13,782
Other than temporary impairment
(4)
—
—
(
9,173
)
—
(
9,173
)
Cash dividends received
(4,814
)
(4,129
)
—
(
1,080
)
(10,023
)
Other, primarily translation
adjustments
13,525
324
(733
)
351
13,467
Balance at June 30, 2011
$
149,245
$
104,540
$
2,210
$
5,145
$
261,140
Percentage ownership at June 30,
2011
46.7
%
55.1
%
—
50.0
%
(1) Equity in income of affiliated companies, net of income taxes per the Consolidated Statement of Operations includes
$4.1 million in equity income of Provalliance and $0.5 million for the increase in the Provalliance equity put valuation.
(2) Equity in income of affiliated companies, net of income taxes per the Consolidated Statement of Operations includes
$7.8 million in equity income of Provalliance and a $2.4 million gain for the decrease in the Provalliance equity put
valuation.
(3) In March of 2011, the Company elected to honor and settle a portion of the equity put option and acquired approximately
17 percent additional equity interest in Provalliance for $57.3 million (€ 40.4 million), bringing the Company's total equity
interest to approximately 47 percent.
(4)
Due to the natural disasters in Japan that occurred in March 2011, the Company was required to assess the preferred shares
and premium for other than temporary impairment. As a result, the Company recorded an other than temporary impairment
during the twelve months ended June 30, 2011 for the carrying value of the preferred shares and premium of $3.9 million
(326,700,000 Yen) and $5.3 million (435,000,000 Yen), respectively. Of the total impairment, $9.0 million was recorded
through the equity in income of affiliated companies and $0.2 million was recorded through the interest income and other,
net, line items in the Consolidated Statement of Operations.