Quarterly report pursuant to Section 13 or 15(d)

Goodwill and Intangible Assets

v2.4.0.8
Goodwill and Intangible Assets
3 Months Ended
Sep. 30, 2014
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets
GOODWILL AND INTANGIBLE ASSETS

On July 1, 2005, all of the outstanding common stock of A-Mark was acquired by Spectrum PMI, Inc. Spectrum PMI was a holding company whose outstanding common stock was owned 80% by SGI, and 20% by Auctentia, S.L. In September 2012, SGI purchased from Auctentia its 20% interest in Spectrum PMI. On September 30, 2013, Spectrum PMI was merged with and into SGI, as a result of which all of the outstanding shares of A‑Mark were then owned directly by SGI.
In connection with the acquisition of A-Mark by Spectrum PMI on July 1, 2005, the accounts of the Company were adjusted using the push down basis of accounting to recognize the allocation of the consideration paid to the respective net assets acquired. In accordance with the push down basis of accounting, the Company's net assets were adjusted to their fair values as of the date of the acquisition based upon an independent appraisal, which resulted in goodwill of $4.9 million and identifiable purchased intangible assets of $8.4 million.
Goodwill represents the excess of the purchase price and related costs over the value assigned to intangible assets of businesses acquired and accounted for under the purchase method.
The carrying value of other purchased intangibles as of September 30, 2014 and June 30, 2014 is as described below:
dollar amounts in thousands
 
 
 
 
 
 
 
 
 
 
 
 
 

 
 
September 30, 2014
 
June 30, 2014
 
Estimated Useful Lives (Years)
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Book Value
 
Gross Carrying Amount
 
Accumulated Amortization
 
Net Book Value
Trade-name
Indefinite
 
$
454

 
$

 
$
454

 
$
454

 
$

 
$
454

Existing customer relationships
5 - 15
 
5,747

 
(3,544
)
 
2,203

 
5,747

 
(3,448
)
 
2,299

Non-compete and other
4
 
2,000

 
(2,000
)
 

 
2,000

 
(2,000
)
 

Employment agreement
3
 
195

 
(195
)
 

 
195

 
(195
)
 

Purchased intangibles subject to amortization
 
 
7,942

 
(5,739
)
 
2,203

 
7,942

 
(5,643
)
 
2,299

 
 
 
$
8,396

 
$
(5,739
)
 
$
2,657

 
$
8,396

 
$
(5,643
)
 
$
2,753



The Company's other purchased intangible assets are subject to amortization except for trademarks, which have an indefinite life. Intangible assets subject to amortization are amortized using the straight-line method over their useful lives, which are estimated to be four to fifteen years. Amortization expense related to the Company's intangible assets for the three months ended September 30, 2014 and 2013 was $0.1 million and $0.1 million, respectively.

Estimated amortization expense on an annual basis for the succeeding five years is as follows (in thousands):
Fiscal year ending June 30,
 
Amount
2015 (9 months remaining)
 
$
288

2016
 
385

2017
 
385

2018
 
385

2019
 
385

Thereafter
 
375

Total
 
$
2,203