Goodwill, Trademarks, and Other Intangible Assets

6 Months Ended

Jun. 30, 2011

Goodwill, Trademarks, and Other Intangible Assets

Goodwill, Trademarks, and Other Intangible Assets

(6)           Goodwill, Trademarks, and Other Intangible Assets

Intangible assets other than goodwill and indefinite-lived trademarks are amortized on a straight-line basis over their estimated useful lives. Deferred financing costs are amortized over the repayment periods of the underlying debt. We performed our annual goodwill and intangible asset impairment test as of July 31, 2010 to coincide with the timing of our fall budgeting and planning process, which provides multi-year cash flows that are used to conduct our annual impairment testing. Our analyses of band division trademarks and piano division goodwill and trademarks did not indicate any impairment; therefore, no charge was taken against those assets. No other events or circumstances occurred subsequent to our annual impairment test which would have indicated that these assets may be impaired.

The changes in carrying amounts of goodwill and trademarks are as follows:

	Piano		Band		Total
Goodwill:
Balance, January 1, 2011	$	25,823	$	200	$	26,023
Foreign currency translation impact	1,157		—		1,157
Balance, June 30, 2011	$	26,980	$	200	$	27,180
Trademarks:
Balance, January 1, 2011	$	9,157	$	5,824	$	14,981
Foreign currency translation impact	362		—		362
Balance, June 30, 2011	$	9,519	$	5,824	$	15,343

We have previously recorded cumulative impairment losses of $8.6 million associated with band division goodwill and $1.0 million associated with online music business trademarks.

We also carry certain intangible assets that are amortized. Once fully amortized, these assets are removed from both the gross and accumulated amortization balances. These assets consist of the following:

	June 30, 2011			December 31, 2010
Gross deferred financing costs	$	3,898		$	6,170
Accumulated amortization	(2,518		)	(3,542		)
Deferred financing costs, net	$	1,380		$	2,628
Gross non-compete agreements	$	250		$	250
Accumulated amortization	(156		)	(131		)
Non-compete agreements, net	$	94		$	119
Gross customer relationships	$	498		$	524
Accumulated amortization	(277		)	(283		)
Customer relationships, net	$	221		$	241
Gross website and developed technology	$	2,176		$	2,176
Accumulated amortization	(1,352		)	(1,136		)
Website and developed technology, net	$	824		$	1,040
Total gross other intangibles	$	6,822		$	9,120
Accumulated amortization	(4,303		)	(5,092		)
Total other intangibles, net	$	2,519		$	4,028

We wrote off $1.0 million of deferred financing costs during the period, primarily due to the redemption of $85.0 million of our 7.00% Senior Notes, which is discussed more fully in Note 8. The weighted-average amortization period for deferred financing costs is six years, and the weighted-average amortization period for all other amortizable intangibles is approximately five years. The remaining weighted-average amortization period for deferred financing costs is approximately three years and the remaining weighted-average amortization period for all other amortizable intangibles is approximately two years. Total amortization expense, which includes amortization of deferred financing costs, is as follows:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Amortization expense	$	267	$	305	$	577	$	611

The following table shows the total estimated amortization expense for the remainder of 2011 and beyond:

Remainder of 2011	$	491
2012	983
2013	632
2014	245
2015	162
Thereafter	6
Total	$	2,519