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GOODWILL AND OTHER INTANGIBLES:
3 Months Ended
Sep. 30, 2012
GOODWILL AND OTHER INTANGIBLES:  
GOODWILL AND OTHER INTANGIBLES:

6.                                     GOODWILL AND OTHER INTANGIBLES:

 

The table below contains details related to the Company’s recorded goodwill as of and for the three months ended September 30, 2012 and June 30, 2012:

 

 

 

Salons

 

 

 

 

 

North America

 

International

 

Consolidated

 

 

 

(Dollars in thousands)

 

Gross goodwill at June 30, 2012

 

$

717,466

 

$

41,661

 

$

759,127

 

Accumulated impairment losses

 

(255,187

)

(41,661

)

(296,848

)

Net goodwill at June 30, 2012

 

462,279

 

 

462,279

 

Goodwill acquired

 

 

 

 

Translation rate adjustments

 

1,638

 

 

1,638

 

Gross goodwill at September 30, 2012

 

719,104

 

41,661

 

760,765

 

Accumulated impairment losses

 

(255,187

)

(41,661

)

(296,848

)

Net goodwill at September 30, 2012

 

$

463,917

 

$

 

$

463,917

 

 

The table below presents other intangible assets as of September 30, 2012 and June 30, 2012:

 

 

 

September 30, 2012

 

June 30, 2012

 

 

 

 

 

Accumulated

 

 

 

 

 

Accumulated

 

 

 

 

 

Cost

 

Amortization (1)

 

Net

 

Cost

 

Amortization (1)

 

Net

 

 

 

(Dollars in thousands)

 

Amortized intangible assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Brand assets and trade names

 

$

9,710

 

$

(3,108

)

$

6,602

 

$

9,494

 

$

(2,960

)

$

6,534

 

Franchise agreements

 

11,646

 

(6,748

)

4,898

 

11,398

 

(6,494

)

4,904

 

Lease intangibles

 

14,844

 

(6,069

)

8,775

 

14,796

 

(5,862

)

8,934

 

Non-compete agreements

 

213

 

(130

)

83

 

207

 

(117

)

90

 

Other

 

4,695

 

(1,678

)

3,017

 

4,533

 

(1,600

)

2,933

 

 

 

$

41,108

 

$

(17,733

)

$

23,375

 

$

40,428

 

$

(17,033

)

$

23,395

 

 

 

(1)     Balance sheet accounts are converted at the applicable exchange rates effective as of the reported balance sheet dates, while income statement accounts are converted at the average exchange rates for the year-to-date periods presented.

 

All intangible assets have been assigned an estimated finite useful life and are amortized over the number of years that approximate their respective useful lives (ranging from one to 40 years). The cost of intangible assets is amortized to earnings in proportion to the amount of economic benefits obtained by the Company in that reporting period. The weighted average amortization periods, in aggregate and by major intangible asset class, are as follows:

 

 

 

Weighted Average Amortization Period

 

 

 

September 30,
2012

 

June 30,
2012

 

 

 

(In years)

 

Amortized intangible assets:

 

 

 

 

 

Brand assets and trade names

 

33

 

33

 

Franchise agreements

 

19

 

19

 

Lease intangibles

 

20

 

20

 

Non-compete agreements

 

6

 

6

 

Other

 

21

 

21

 

Weighted average amortization period

 

23

 

23

 

 

Total amortization expense related to the amortizable intangible assets was $0.7 and $0.5 million during the three months ended September 30, 2012 and 2011, respectively. As of September 30, 2012, future estimated amortization expense related to amortizable intangible assets is estimated to be:

 

Fiscal Year

 

(Dollars in
thousands)

 

2013 (Remainder: nine-month period)

 

$

1,333

 

2014

 

1,946

 

2015

 

1,923

 

2016

 

1,891

 

2017

 

1,889