GOODWILL

12 Months Ended

Jun. 30, 2011

GOODWILL

GOODWILL

5. GOODWILL

        The table below contains details related to the Company's recorded goodwill for the years ended June 30, 2011 and 2010:

	Salons
							Hair Restoration Centers
	North America			International						Consolidated
	(Dollars in thousands)
Gross goodwill at June 30, 2009	$	693,181		$	41,661		$	149,367		$	884,209
Accumulated impairment losses		(78,126	)		(41,661	)		—			(119,787	)
Net goodwill at June 30, 2009		615,055			—			149,367			764,422
Goodwill acquired(1)		2,581			—			—			2,581
Translation rate adjustments		4,250			—			13			4,263
Resolution to pre-acquisition income tax contingency		—			—			1,000			1,000
Goodwill impairment(2)		(35,277	)		—			—			(35,277	)
Gross goodwill at June 30, 2010		700,012			41,661			150,380			892,053
Accumulated impairment losses		(113,403	)		(41,661	)		—			(155,064	)
Net goodwill at June 30, 2010		586,609			—			150,380			736,989
Goodwill acquired(1)		10,070			—			2,419			12,489
Translation rate adjustments		5,137			—			(3	)		5,134
Goodwill impairment(3)		(74,100	)		—			—			(74,100	)
Gross goodwill at June 30, 2011		715,219			41,661			152,796			909,676
Accumulated impairment losses		(187,503	)		(41,661	)		—			(229,164	)
Net goodwill at June 30, 2011	$	527,716		$	—		$	152,796		$	680,512

(1)

See Note 4 to the Consolidated Financial Statements.

(2)

As a result of the Company's annual impairment testing of goodwill, a $35.3 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.

(3)

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.