GOODWILL AND OTHER INTANGIBLES:

The table below contains details related to the Company's goodwill:



	Company-owned			Franchise			Consolidated
	(Dollars in thousands)
Goodwill, net at June 30, 2018	$	184,788		$	227,855		$	412,643
Translation rate adjustments	(337		)	(936		)	(1,273		)
Derecognition related to sale of salon assets to franchisees (1)	(17,596		)	—			(17,596		)
Goodwill, net at December 31, 2018	$	166,855		$	226,919		$	393,774

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(1)

Goodwill is derecognized for salons sold to franchisees with positive cash flows. The amount of goodwill derecognized is determined by a fraction (the numerator of which is the trailing-twelve months EBITDA of the salon being sold and the denominator of which is the estimated annualized EBITDA of the Company-owned reporting unit) that is applied to the total goodwill balance of the Company-owned reporting unit.

The table below presents other intangible assets:



	December 31, 2018							June 30, 2018
	Cost (1)		Accumulated Amortization (1)			Net		Cost (1)		Accumulated Amortization (1)			Net
	(Dollars in thousands)
Amortized intangible assets:
Brand assets and trade names	$	7,910	$	(4,274	)	$	3,636	$	8,128	$	(4,260	)	$	3,868
Franchise agreements	9,562		(7,717		)	1,845		9,763		(7,712		)	2,051
Lease intangibles	13,967		(10,096		)	3,871		13,997		(9,770		)	4,227
Other	1,945		(1,561		)	384		1,983		(1,572		)	411
	$	33,384	$	(23,648	)	$	9,736	$	33,871	$	(23,314	)	$	10,557

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(1)	The change in the gross carrying value and accumulated amortization of other intangible assets is impacted by foreign currency.