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GOODWILL AND OTHER INTANGIBLES:
6 Months Ended
Dec. 31, 2012
GOODWILL AND OTHER INTANGIBLES:  
GOODWILL AND OTHER INTANGIBLES:

5.                                     GOODWILL AND OTHER INTANGIBLES:

 

The table below contains details related to the Company’s recorded goodwill as of December 31, 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

 

1,191

 

 

1,191

 

Gross goodwill at December 31, 2012

 

718,657

 

41,661

 

760,318

 

Accumulated impairment losses

 

(255,187

)

(41,661

)

(296,848

)

Net goodwill at December 31, 2012

 

$

463,470

 

$

 

$

463,470

 

 

The table below presents other intangible assets as of December 31, 2012 and June 30, 2012:

 

 

 

December 31, 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

 

$

9,651

 

$

(3,173

)

$

6,478

 

$

9,494

 

$

(2,960

)

$

6,534

 

Franchise agreements

 

11,578

 

(6,841

)

4,737

 

11,398

 

(6,494

)

4,904

 

Lease intangibles

 

14,832

 

(6,248

)

8,584

 

14,796

 

(5,862

)

8,934

 

Non-compete agreements

 

212

 

(138

)

74

 

207

 

(117

)

90

 

Other

 

4,754

 

(1,734

)

3,020

 

4,533

 

(1,600

)

2,933

 

 

 

$

41,027

 

$

(18,134

)

$

22,893

 

$

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.

 

Total amortization expense related to the amortizable intangible assets was approximately $0.5 million during each of the three month periods ended December 31, 2012 and 2011, and $0.9 and $1.0 million during the six month periods ended December 31, 2012 and 2011, respectively.  As of December 31, 2012, future estimated amortization expense related to amortizable intangible assets is estimated to be:

 

Fiscal Year

 

(Dollars in
thousands)

 

2013 (Remainder: six-month period)

 

$

880

 

2014

 

1,671

 

2015

 

1,647

 

2016

 

1,616

 

2017

 

1,611