Goodwill and Other Purchased Intangible Assets

3 Months Ended

Sep. 30, 2013

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Purchased Intangible Assets

GOODWILL AND OTHER PURCHASED INTANGIBLE ASSETS

Goodwill

The carrying values of goodwill by business segment as of September 30, 2013 and June 30, 2013 are described below:



in thousands	Trading		Collectibles			Total
Balance as of June 30, 2013
Goodwill	$	4,884	$	5,363		$	10,247
Accumulated impairment losses	—		(5,363		)	(5,363		)
	4,884		—			4,884
Balance as of September 30, 2013
Goodwill	4,884		5,363			10,247
Accumulated impairment losses	—		(5,363		)	(5,363		)
	$	4,884	$	—		$	4,884

Cumulative goodwill impairment totaled $5.4 million as of September 30, 2013 and June 30, 2013. There were no impairment charges to the Company's goodwill and purchased intangibles during the three months ended September 30, 2013 or September 30, 2012. In the fourth quarter of fiscal 2013, the Company had recorded the impairment charges primarily due to the operating loss incurred in SBN and management's evaluation of economic conditions and projected future performance in the business.

Other Purchased Intangibles, Net

The carrying value of other purchased intangibles as of September 30, 2013 and June 30, 2013 is as described below:



		September 30, 2013										June 30, 2013

in thousands	Estimated Useful Lives (Years)	Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment			Net Book Value		Gross Carrying Amount		Accumulated Amortization			Accumulated Impairment			Net Book Value
Trademarks	Indefinite	$	3,479	$	—		$	(798	)	$	2,681	$	3,479	$	—		$	(798	)	$	2,681
Customer lists	5 - 15	9,057		(5,201		)	(419		)	3,437		9,057		(5,019		)	(419		)	3,619
Non-compete and other	0 - 4	2,270		(2,254		)	—			16		2,270		(2,253		)	—			17
Purchased intangibles subject to amortization		11,327		(7,455		)	(419		)	3,453		11,327		(7,272		)	(419		)	3,636
		$	14,806	$	(7,455	)	$	(1,217	)	$	6,134	$	14,806	$	(7,272	)	$	(1,217	)	$	6,317

The Company's other purchased intangible assets are subject to amortization except for trademarks, which have an indefinite life. Amortization expense related to the Company's intangible assets for the three months ended September 30, 2013 and 2012 was $0.2 million and $0.2 million, respectively. On November 23, 2010, Bowers and Merena Auctions, LLC (“B&M”) purchased certain assets of Summit Rare Coins for $0.3 million which was reflected as an increase to customer lists.

Estimated amortization expense on an annual basis for the succeeding five years is as follows (in thousands):



Year ending June 30,
2014 (remaining 9 months)	$	683
2015	567
2016	518
2017	477
2018	450
Thereafter	758
Total	$	3,453

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

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SPECTRUM GROUP INTERNATIONAL, INC. 10-Q