Exclusive Brand Licenses, Trademarks And Intangibles, Net And Goodwill

6 Months Ended

Dec. 31, 2011

Exclusive Brand Licenses, Trademarks And Intangibles, Net And Goodwill [Abstract]

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:

							June 30, 2011
		December 31,			June 30,		Weighted Average
(Amounts in thousands)		2011			2011		Estimated Life
Elizabeth Arden brand trademarks	$	122,415		$	122,415		Indefinite
Exclusive brand licenses and related trademarks		86,804			86,755		17
Exclusive brand trademarks		99,913			55,832		14
Other intangibles (1)		19,930			20,330		17
Exclusive brand licenses, trademarks and intangibles, gross		329,062			285,332
Accumulated amortization:
Exclusive brand licenses and related trademarks		(53,780	)		(51,006	)
Exclusive brand trademarks		(42,807	)		(41,121	)
Other intangibles		(8,447	)		(8,447	)
Exclusive brand licenses, trademarks and intangibles, net	$	224,028		$	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 also 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 December 31, 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 December 31, 2011 did not change from the prior year end balance as the Company did not record any additions or impairments during the three and six months ended December 31, 2011.

     Amortization expense was $2.5 million and $2.4 million for the three months ended December 31, 2011 and 2010, respectively, and $4.9 million for both the six months ended December 31, 2011 and 2010. At December 31, 2011, the Company 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	$	5.1
2013	$	9.2
2014	$	8.2
2015	$	7.7
2016	$	7.4