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5. GOODWILL
The table below contains details related to the Company's recorded goodwill for the years ended June 30, 2012 and 2011:
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Salons |
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Hair
Restoration
Centers |
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North America |
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International |
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Consolidated |
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(Dollars in thousands)
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Gross goodwill at June 30, 2010 |
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$ |
700,012 |
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$ |
41,661 |
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$ |
150,380 |
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$ |
892,053 |
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Accumulated impairment losses |
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(113,403 |
) |
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(41,661 |
) |
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— |
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(155,064 |
) |
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Net goodwill at June 30, 2010 |
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586,609 |
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— |
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150,380 |
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736,989 |
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Goodwill acquired(1) |
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10,070 |
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— |
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2,419 |
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12,489 |
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Translation rate adjustments |
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5,137 |
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— |
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(3 |
) |
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5,134 |
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Goodwill impairment(2) |
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(74,100 |
) |
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— |
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— |
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(74,100 |
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Gross goodwill at June 30, 2011 |
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715,219 |
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41,661 |
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152,796 |
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909,676 |
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Accumulated impairment losses |
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(187,503 |
) |
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(41,661 |
) |
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— |
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(229,164 |
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Net goodwill at June 30, 2011 |
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527,716 |
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— |
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152,796 |
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680,512 |
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Goodwill acquired(1) |
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4,978 |
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— |
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— |
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4,978 |
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Translation rate adjustments |
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(2,731 |
) |
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— |
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6 |
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(2,725 |
) |
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Goodwill impairment(3)(4) |
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(67,684 |
) |
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— |
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(78,426 |
) |
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(146,110 |
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Gross goodwill at June 30, 2012 |
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717,466 |
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41,661 |
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152,802 |
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911,929 |
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Accumulated impairment losses |
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(255,187 |
) |
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(41,661 |
) |
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(78,426 |
) |
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(375,274 |
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Net goodwill at June 30, 2012 |
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$ |
462,279 |
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$ |
— |
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$ |
74,376 |
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$ |
536,655 |
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- (1)
- See Note 4 to the Consolidated Financial Statements.
- (2)
- As a result of the Company's annual impairment testing of goodwill, a $74.1 million impairment charge was recorded within continuing operations for the excess of the carrying value of goodwill over the implied fair value of goodwill for the Promenade salon concept.
- (3)
- As a result of the Company's interim impairment testing of goodwill during the three months ended December 31, 2011, a $78.4 million impairment charge was recorded within continuing operations for the excess of the carrying value of goodwill over the implied fair value of goodwill for the Hair Restoration Centers reporting unit.
- (4)
- As a result of the Company's annual impairment testing of goodwill, a $67.7 million impairment charge was recorded within continuing operations for the excess of the carrying value of goodwill over the implied fair value of goodwill for the Regis salon concept.
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