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GOODWILL AND OTHER INTANGIBLES

3 Months Ended

Sep. 30, 2011

GOODWILL AND OTHER INTANGIBLES:

GOODWILL AND OTHER INTANGIBLES:

4. 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, 2011:

		Salons						Hair Restoration
		North America			International			Centers			Consolidated
		(Dollars in thousands)
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
Goodwill acquired (1)		4,337			—			—			4,337
Translation rate adjustments		(4,274		)	—			13			(4,261		)
Gross goodwill at September 30, 2011		715,282			41,661			152,809			909,752
Accumulated impairment losses		(187,503		)	(41,661		)	—			(229,164		)
Net goodwill at September 30, 2011		$	527,779		$	—		$	152,809		$	680,588

(1) See Note 5 to the Condensed Consolidated Financial Statements.

The table below presents other intangible assets as of September 30, 2011 and June 30, 2011:

		September 30, 2011									June 30, 2011
					Accumulated									Accumulated
		Cost			Amortization			Net			Cost			Amortization			Net
		(Dollars in thousands)
Amortized intangible assets:
Brand assets and trade names		$	79,797		$	(14,703	)	$	65,094		$	80,310		$	(14,329	)	$	65,981
Customer lists		53,188			(35,478		)	17,710			53,188			(34,096		)	19,092
Franchise agreements		22,109			(8,897		)	13,212			22,221			(8,909		)	13,312
Lease intangibles		14,855			(5,312		)	9,543			14,948			(5,168		)	9,780
Non-compete agreements		201			(89		)	112			353			(232		)	121
Other		4,378			(1,437		)	2,941			4,429			(1,387		)	3,042
		$	174,528		$	(65,916	)	$	108,612		$	175,449		$	(64,121	)	$	111,328

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 total and by major intangible asset class, are as follows:

		Weighted Average Amortization Period
		September 30, 2011		June 30, 2011
		(In years)
Amortized intangible assets:
Brand assets and trade names		39		39
Customer lists		10		10
Franchise agreements		22		22
Lease intangibles		20		20
Non-compete agreements		6		5
Other		22		25
Total		26		26

Total amortization expense related to the amortizable intangible assets was $2.5 and $2.4 million during the three months ended September 30, 2011 and 2010, respectively. As of September 30, 2011, future estimated amortization expense related to amortizable intangible assets is estimated to be:

Fiscal Year		(Dollars in thousands)
2012 (Remainder: nine-month period)		$	7,227
2013		9,393
2014		9,181
2015		6,140
2016		3,982

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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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