Supercuts 2008 Annual Report Download - page 86

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
2. OTHER FINANCIAL STATEMENT DATA (Continued)
All intangible assets have been assigned an estimated finite useful life, and are amortized on a straight-line basis over the number of years
that approximate their expected period of benefit (ranging from one to 40 years). The cost of intangible assets is amortized to earnings in
proportion to the amount of economic benefits obtained by the Company in that reporting period. The weighted average amortization periods, in
total and by major intangible asset class, are as follows:
Total amortization expense related to amortizable intangible assets during the years ended June 30, 2008, 2007, and 2006 was
approximately $11.2, $11.8, and $11.2 million, respectively. As of June 30, 2008, future estimated amortization expense related to amortizable
intangible assets is estimated to be:
84
2008
2007
Cost
Accumulated
Amortization
Net
Cost
Accumulated
Amortization
Net
(Dollars in thousands)
Amortized intangible assets:
Brand assets and trade names
$
81,407
$
(8,072
)
$
73,335
$
112,999
$
(10,193
)
$
102,806
Customer lists
51,316
(17,444
)
33,872
48,744
(9,970
)
38,774
Franchise agreements
27,115
(6,363
)
20,752
27,149
(7,538
)
19,611
Lease intangibles
14,771
(2,887
)
11,884
13,933
(4,818
)
9,115
School
-
related licenses
—
—
—
25,428
(1,247
)
24,181
Product license agreements
—
—
—
16,946
(2,944
)
14,002
Non
-
compete agreements
785
(631
)
154
691
(644
)
47
Other
7,974
(3,680
)
4,294
7,728
(2,812
)
4,916
$
183,368
$
(39,077
)
$
144,291
$
253,618
$
(40,166
)
$
213,452
Weighted Average Amortization Period (in years)
Amortized intangible assets:
Brand assets and trade names
39
Customer list
10
Franchise agreements
21
Lease intangibles
20
Non
-
compete agreements
5
Other
17
Total
26
Fiscal Year
(Dollars in thousands)
2009
$
11,848
2010
11,577
2011
11,392
2012
11,238
2013
11,040