Goodwill and Intangible Assets
|9 Months Ended
Mar. 31, 2014
|Goodwill and Intangible Assets Disclosure [Abstract]
|Goodwill and Intangible Assets
GOODWILL AND INTANGIBLE ASSETS
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 an increase 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 March 31, 2014 and June 30, 2013 is as described below:
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 nine months ended March 31, 2014 and 2013 was $0.3 million and $0.3 million, respectively.
Estimated amortization expense on an annual basis for the succeeding five years is as follows (in thousands):