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Goodwill and Intangible Assets
12 Months Ended
Sep. 30, 2012
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Disclosure [Text Block]
E. Goodwill and Intangible Assets

 

Goodwill and intangible assets consisted of the following:

 

(in thousands)                
        September 30,  
        2012     2011  
Indefinite useful lives:                    
Goodwill       $ 43,421     $ 23,550  
Licenses         50,608       42,092  
    Amortization
Period
               
Definite useful lives:                    
Discounted leases   18 & 6 years     27       46  
Unamortized non-compete agreements   5 years     1,150       1,045  
                     
Total goodwill and intangible assets       $ 95,206     $ 66,733  

 

(in thousands)   2012     2011  
    Licenses     Goodwill     Licenses     Goodwill  
Beginning balance   $ 42,092     $ 23,550     $ 40,740     $ 21,021  
Intangibles acquired     8,516       19,871       1,150       2,731  
                                 
Other     -       -     202       (202 )
Ending balance   $ 50,608     $ 43,421     $ 42,092     $ 23,550  

 

Future amortization expense related to definite lived intangible assets subject to amortization at September 30, 2012 is (in thousands): 2013 - $388, 2014 - $272, 2015 - $232, 2016 - $181, 2017 - $94 and thereafter - $10.

 

Goodwill and indefinite lived intangible assets consist of sexually oriented business licenses or goodwill, which were obtained as part of the acquisitions. These licenses are the result of zoning ordinances, thus are valid indefinitely, subject to filing annual renewal applications, which are done at minimal costs to the Company. As cash flows are expected to continue indefinitely, in accordance with FASB ASC 350, Intangibles - Goodwill and Other, the licenses are determined to have indefinite useful lives. The discounted cash flow method of income approach was used in calculating the value of these licenses in a business combination.  Impairment of intangible assets was $3,574,000 for the year ended September 30, 2010, representing the impairment of the Philadelphia club. There was no impairment for the years ended September 30, 2012 or 2011.