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GOODWILL AND OTHER INTANGIBLES: | 6 Months Ended
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Dec. 31, 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 December 31, 2011 and June 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) |  | 4,966 |  | — |  | — |  | 4,966 |
Translation rate adjustments |  | (2,952 | ) | — |  | (3 | ) | (2,955 | )
Goodwill impairment (2) |  | — |  | — |  | (78,426 | ) | (78,426 | )
Gross goodwill at December 31, 2011 |  | 717,233 |  | 41,661 |  | 152,793 |  | 911,687 |
Accumulated impairment losses |  | (187,503 | ) | (41,661 | ) | (78,426 | ) | (307,590 | )
Net goodwill at December 31, 2011 |  | $ | 529,730 |  | $ | — |  | $ | 74,367 |  | $ | 604,097 |
(1) See Note 5 to the Condensed Consolidated Financial Statements. (2) As a result of the Company’s interim impairment test of goodwill during the three months ended December 31, 2011, a $78.4 million impairment charge was recorded for the excess of the carrying value of goodwill over the implied fair value of goodwill for the Hair Restoration Centers reporting unit. The table below presents other intangible assets as of December 31, 2011 and June 30, 2011:
|  | December 31, 2011 |  | June 30, 2011 |
|  |  |  | Accumulated |  |  |  |  |  | Accumulated |  |  |
|  | Cost |  | Amortization |  | Net |  | Cost |  | Amortization |  | Net |
|  | (Dollars in thousands) |
Amortized intangible assets: |  |  |  |  |  |  |  |  |  |  |  |  |
Brand assets and trade names |  | $ | 79,966 |  | $ | (15,272 | ) | $ | 64,694 |  | $ | 80,310 |  | $ | (14,329 | ) | $ | 65,981 |
Customer lists |  | 53,188 |  | (36,888 | ) | 16,300 |  | 53,188 |  | (34,096 | ) | 19,092 |
Franchise agreements |  | 22,302 |  | (9,261 | ) | 13,041 |  | 22,221 |  | (8,909 | ) | 13,312 |
Lease intangibles |  | 14,882 |  | (5,510 | ) | 9,372 |  | 14,948 |  | (5,168 | ) | 9,780 |
Non-compete agreements |  | 206 |  | (99 | ) | 107 |  | 353 |  | (232 | ) | 121 |
Other |  | 4,385 |  | (1,488 | ) | 2,897 |  | 4,429 |  | (1,387 | ) | 3,042 |
|  | $ | 174,929 |  | $ | (68,518 | ) | $ | 106,411 |  | $ | 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 |
|  | December 31, 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 approximately $2.5 million during each of the three month periods ended December 31, 2011 and 2010, and $4.9 million during each of the six month periods ended December 31, 2011 and 2010. As of December 31, 2011, future estimated amortization expense related to amortizable intangible assets is estimated to be:
Fiscal Year |  | (Dollars in thousands) |
2012 (Remainder: six-month period) |  | $ | 4,804 |
2013 |  | 9,408 |
2014 |  | 9,195 |
2015 |  | 6,153 |
2016 |  | 3,995

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- Definition 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. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13816-109267 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16265-109275 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Statement of Financial Accounting Standard (FAS) -Number 142 -Paragraph 42, 43, 44, 45, 46, 47 -LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy. Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16373-109275 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905858&loc=d3e16323-109275 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -SubTopic 20 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6905597&loc=d3e13854-109267 + Details
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