Sally Beauty Supply 2013 Annual Report Download - page 125

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Sally Beauty Holdings, Inc. and Subsidiaries
Notes to Consolidated Financial Statements (Continued)
Fiscal Years ended September 30, 2013, 2012 and 2011
intangible assets otherwise required under ASC 350. In effect, the amendment eliminates the need to
calculate the fair value of an indefinite-lived intangible asset in connection with the impairment test unless
the entity determines, based on the qualitative assessment, that it is more likely than not that the asset is
impaired. As permitted, the Company adopted the provisions of ASU No. 2012-02 effective January 1,
2013.
The Company completed its annual assessment of intangible assets, other than goodwill and including
indefinite-lived intangible assets, for impairment during the quarter ended March 31, 2013. No impairment
losses were recognized in the current or prior periods presented in connection with the Company’s
intangible assets.
The following table provides the carrying value for intangible assets with indefinite lives, excluding
goodwill, and the gross carrying value and accumulated amortization for intangible assets subject to
amortization by operating segment at September 30, 2013 and 2012 (in thousands):
Sally Beauty Beauty Systems
Supply Group Total
Balance at September 30, 2013:
Intangible assets with indefinite lives:
Trade names ................... $27,968 $ 27,465 $ 55,433
Intangible assets subject to amortization:
Gross carrying amount ............ 26,809 119,614 146,423
Accumulated amortization ......... (12,177) (59,582) (71,759)
Net value ................... 14,632 60,032 74,664
Total intangible assets, excluding
goodwill, net .............. $42,600 $ 87,497 $130,097
Balance at September 30, 2012:
Intangible assets with indefinite lives:
Trade names ................... $27,258 $ 27,455 $ 54,713
Intangible assets subject to amortization:
Gross carrying amount ............ 26,430 106,486 132,916
Accumulated amortization ......... (9,856) (49,336) (59,192)
Net value ................... 16,574 57,150 73,724
Total intangible assets, excluding
goodwill, net .............. $43,832 $ 84,605 $128,437
As described in Note 17, during the fiscal year ended September 30, 2013, intangible assets subject to
amortization in the amount of $9.1 million were recorded by BSG in connection with the Company’s
acquisition of certain assets and business operations of Essential Salon and $4.0 million in connection with
individually immaterial acquisitions completed in the year. As described in Note 17, during the fiscal year
ended September 30, 2012, intangible assets subject to amortization in the amount of $11.8 million were
recorded by Sally Beauty Supply in connection with the Company’s acquisition of the Floral Group in
November 2011.
F-23