It appears that it only does it for anything subdomainish -- that is, not the first part after the TLD. I tested it against .nz which has a silly mix of .{co,govt,school}.nz second-level domains and directly registered example.nz domains and it always displays at least one "registered" bit.
Which is almost worse because it seems like people have put thought into this.
Which is almost worse because it seems like people have put thought into this.