Goodwill and Intangible Assets

12 Months Ended

Sep. 30, 2014

7. Goodwill and Intangible Assets

Goodwill and indefinite-lived intangible assets are tested annually for impairment and when events or changes in circumstances indicate the carrying value may not be recoverable. The Company performs its annual impairment testing as of September 30 each year, which is the last day of the Company's fiscal year. Amortizable intangible assets are reviewed for impairment when events or changes in circumstances indicate the carrying value may not be recoverable.

The changes in the carrying amount of goodwill for the years ended September 30, 2013 and 2014 were as follows:

	Goodwill		Accumulated Impairment			Net
Balance as of October 1, 2012	$	55,146	$	(40,394	)	$	14,752
Goodwill attributable to fiscal 2013 acquisitions		1,069		—			1,069

Balance as of September 30, 2013		56,215		(40,394	)		15,821
Goodwill attributable to fiscal 2014 acquisitions		7,801		—			7,801

Balance as of September 30, 2014	$	64,016	$	(40,394	)	$	23,622

The carrying amounts of intangible assets at September 30, 2014 and 2013 were as follows:

	September 30, 2014							September 30, 2013
	September 30, 2014							September 30, 2013							Weighted- Average Amortization Period (Years)
	Gross Carrying Amount(1)		Accumulated Amortization(1)			Net Carrying Amount		Gross Carrying Amount(1)		Accumulated Amortization(1)			Net Carrying Amount		Weighted- Average Amortization Period (Years)
Intangible assets subject to amortization:
Trademarks/trade names/patents	$	5,418	$	(1,480	)	$	3,938	$	3,819	$	(1,053	)	$	2,766	11
Customer relationships/distribution rights/non-compete agreements		16,517		(7,390	)		9,127		11,141		(5,150	)		5,991	7
Developed software and technology		772		(772	)		—		772		(772	)		—	5

		22,707		(9,642	)		13,065		15,732		(6,975	)		8,757
Intangible assets not subject to amortization:
Trademarks/trade names/licenses		8,900		—			8,900		10,323		—			10,323

	$	31,607	$	(9,642	)	$	21,965	$	26,055	$	(6,975	)	$	19,080

(1)	Amounts include the impact of foreign currency translation adjustments.

Aggregate amortization expense related to intangible assets subject to amortization totaled $2,667, $2,209 and $2,007 for the years ended September 30, 2014, 2013 and 2012, respectively.

Estimated amortization expense related to intangible assets subject to amortization is as follows:

Year Ending September 30,	Estimated Amortization Expense
2015	$	2,840
2016		2,162
2017		1,787
2018		1,597
2019		1,170
Thereafter		3,509

	$	13,065

In performing its annual impairment testing as of September 30, 2014, the Company determined that there had been an increase in the probability that certain of its indefinite-lived tradenames could be consolidated with other existing tradenames in the future. As a result, the Company determined these tradenames with an aggregate carrying value of $1,093 should be assigned finite useful lives. In accordance with ASC 350, these tradenames were first tested for impairment as indefinite-lived intangible assets resulting in a non-cash intangible asset impairment charge of $267 ($168 after tax, or $0.02 per diluted share). The remaining $826 was reclassified to amortizable intangible assets as of September 30, 2014 with a weighted-average amortization period of 15 years.

In performing its annual impairment testing as of September 30, 2013, the Company determined that there had been an increase in the probability that certain of its indefinite-lived tradenames could be consolidated with other existing tradenames in the future. As a result, the Company determined these tradenames with an aggregate carrying value of $907 should be assigned finite useful lives. In accordance with ASC 350, these tradenames were first tested for impairment as indefinite lived intangible assets resulting in non-cash intangible asset impairment charges of $124 ($78 after tax, or $0.01 per diluted share). The remaining $783 was reclassified to amortizable intangible assets as of September 30, 2013 with a weighted average amortization period of 13 years.

During the year ended September 30, 2012, the Company recorded a non-cash intangible asset impairment charge of $850 ($551 after tax, or $0.06 per diluted share) related to the consolidation of its food, drug and mass market ("FDM") tradenames. The charge represented the entire carrying amount of the Alan James Group™ ("AJG") tradename. Existing products under the AJG tradename were combined under the Company's primary FDM Body Gold® tradename. The Company believes this tradename consolidation provides increased efficiencies and synergies for its FDM products and customers.

General and economic conditions may continue to impact retail and consumer demand, as well as the market price of the Company's common stock, and could negatively impact the Company's future operating performance, cash flow and/or stock price and could result in additional goodwill and/or intangible asset impairment charges being recorded in future periods. Also, the Company periodically reviews its brands to achieve marketing, sales and operational synergies. These reviews could result in additional brands being consolidated or discontinued and could result in additional intangible asset impairment charges being recorded in future periods. Additional goodwill and/or intangible asset impairment charges could materially impact the Company's consolidated financial statements. The valuation of goodwill and intangible assets is subject to a high degree of judgment, uncertainty and complexity.

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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