NOTE 7. 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:


				Weighted				Weighted
				Average				Average
		June 30,		Estimated		June 30,		Estimated
(Amounts in thousands)		2013		Life		2012		Life
Elizabeth Arden brand trademarks	$	122,415		Indefinite	$	122,415		Indefinite
Exclusive brand licenses and related trademarks		179,506		13		178,555		13
Exclusive brand trademarks and patents		100,902		17		100,313		17
Other intangibles ⁽¹⁾		16,000		20		16,000		20
Exclusive brand licenses, trademarks and intangibles, gross		418,823				417,283
Accumulated amortization:
Exclusive brand licenses and related trademarks		(68,508	)			(53,486	)
Exclusive brand trademarks and patents		(48,398	)			(44,687	)
Other intangibles		(5,501	)			(4,608	)
Exclusive brand licenses, trademarks and intangibles, net	$	296,416			$	314,502

(1) Primarily consists of customer relationships, customer lists and non-compete agreements.

At June 30, 2013, 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 June 30, 2013 did not change from the prior year end balance as the Company did not record any additions or impairments during fiscal 2013.

Goodwill and intangible assets with indefinite lives, such as the Company's Elizabeth Arden trademarks, are not amortized, but rather assessed for impairment at least annually. An annual impairment assessment is performed during the fourth quarter of the Company's fiscal year or more frequently if events or changes in circumstances indicate the carrying value of goodwill and indefinite-lived intangibles may not fully be recoverable. During fiscal year 2012, the Company adopted the updated guidance to Topic 350, Intangibles- Goodwill and Other, issued by the Financial Accounting Standards Board ("FASB") in September 2011, for its annual impairment assessment of goodwill. During the quarter ended June 30, 2013, the Company completed the Company's annual impairment assessment of goodwill using the qualitative assessment under Topic 350 and the analysis indicated that no impairment adjustment was required. Similarly, no such adjustments for impairment of goodwill were recorded for the fiscal years ended June 30, 2012 or 2011.

In July 2012, the FASB issued another update to Codification Topic 350, Intangibles- Goodwill and Other: Testing Indefinite-Lived Intangible Assets for Impairment. This update simplifies the guidance for testing impairment of indefinite-lived intangible assets other than goodwill. Examples of intangible assets subject to the guidance include indefinite-lived trademarks, licenses, and distribution rights. The amendments allow a company the option to first assess qualitative factors to determine whether it is necessary to perform the quantitative impairment test. A company electing to perform a qualitative assessment is no longer required to calculate the fair value of an indefinite-lived intangible asset unless the company determines, based on such qualitative assessment, that it is "more likely than not" that the asset is impaired. The changes to Codification Topic 350 will be effective for the Company beginning July 1, 2013, with early adoption permitted. The Company did not adopt the updated guidance in Topic 350 for its annual impairment test performed for indefinite-lived intangible assets other than goodwill during the quarter ended June 30, 2013, although adoption of the updated guidance is not expected to have a material impact on the Company's consolidated financial statements or disclosures.

The Company has determined that the Elizabeth Arden trademarks have indefinite useful lives, as cash flows from the use of the trademarks are expected to be generated indefinitely. During the quarter ended June 30, 2013, the Company completed its annual impairment assessment of the Elizabeth Arden trademarks, with the assistance of a third party valuation firm. In assessing the fair value of these assets, the Company considered the income approach for the Elizabeth Arden trademarks. Under the income approach, the fair value is based on the present value of estimated future cash flows. The analysis indicated that no impairment adjustment was required as the estimated fair value exceeded the recorded carrying value. Similarly, no such adjustments for impairment of intangible assets were recorded for the fiscal years ended June 30, 2012 or 2011.

Due to the ongoing uncertainty in capital market conditions, the Company will continue to monitor and evaluate the expected future cash flows of its reporting units and the long term trends of its market capitalization for the purposes of assessing the carrying value of its goodwill and indefinite-lived Elizabeth Arden trademarks, other trademarks and intangible assets.

Amortization expense for the years ended June 30, 2013, 2012 and 2011, was $19.6 million, $10.4 million and $8.9 million, respectively. At June 30, 2013, the Company estimated annual amortization expense for each of the next five fiscal years as shown in the following table. Future acquisitions, renewals or impairment events could cause these amounts to change.


(Amounts in millions)	2014		2015		2016		2017		2018
Amortization expense	$	19.1	$	18.5	$	17.8	$	16.4	$	16.3