Exclusive Brand Licenses, Trademarks And Intangibles, Net And Goodwill

3 Months Ended

Sep. 30, 2011

Exclusive Brand Licenses, Trademarks And Intangibles, Net And Goodwill

Exclusive Brand Licenses, Trademarks And Intangibles, Net And Goodwill

NOTE 6.    EXCLUSIVE BRAND LICENSES, TRADEMARKS AND INTANGIBLES, NET AND GOODWILL

The following summarizes the cost basis amortization and weighted average estimated life associated with the Company's intangible assets:

(Amounts in thousands)					June 30, 2011
	September 30,		June 30,		Weighted Average
	2011		2011		Estimated Life
Elizabeth Arden brand trademarks	$	122,415	$	122,415		Indefinite
Exclusive brand licenses and related trademarks		86,791		86,755		17
Exclusive brand trademarks		99,846		55,832		14
Other intangibles (1)		19,930		20,330		17
Exclusive brand licenses, trademarks and intangibles, gross		328,982		285,332
Accumulated amortization:
Exclusive brand licenses and related trademarks		(52,393		(51,006
Exclusive brand trademarks		(41,872		(41,121
Other intangibles		(8,252		(8,447
Exclusive brand licenses, trademarks and intangibles, net	$	226,465	$	184,758
(1) Primarily consists of customer relationships, customer lists and non-compete agreements.

On August 10, 2011, the Company amended its long-term license agreement with Liz Claiborne, Inc. and certain of its affiliates and acquired all of the U.S. and international trademarks for the Curve fragrance brands as well as trademarks for certain other smaller fragrance brands. The amendment established a lower effective royalty rate for the remaining licensed fragrance brands, including Juicy Couture and Lucky Brand fragrances, reduced the future minimum guaranteed royalties for the term of the license, and required a pre-payment of royalties for the remainder of calendar 2011. The Company paid Liz Claiborne, Inc. and its affiliates $58.4 million in cash in connection with this transaction. The Company capitalized $43.9 million of the $58.4 million cash paid as exclusive brand trademarks and the balance was recorded as a prepaid asset associated with the settlement of royalties for the remainder of calendar year 2011 and the buy-down of future royalties.

At September 30, 2011, the Company had goodwill of $21.1 million recorded on its consolidated balance sheet. The entire amount of the goodwill in all periods presented relates to the North America segment. The amount of goodwill recorded on the consolidated balance sheet at September 30, 2011 did not change from the prior year end balance as the Company did not record any additions or impairments during the three months ended September 30, 2011.

Amortization expense was $2.3 million and $2.5 million for the three months ended September 30, 2011 and 2010, respectively. At September 30, 2011, we estimated annual amortization expense for the Company's intangible assets for each of the next five fiscal years to be as shown in the following table. Future acquisitions, renewals or impairment events could cause these amounts to change.

	(Amounts in millions)
Remainder of fiscal 2012	$7.6
2013	$9.2
2014	$8.2
2015	$7.7
2016	$7.4