INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS

12 Months Ended

Jul. 31, 2014

INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS

7. INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS

The components of amortizable intangible assets are as follows:


		July 31, 2014				July 31, 2013
	Weighted Average Years Remaining Life	Cost		Accumulated Amortization		Cost		Accumulated Amortization
Dealer networks	9	$	90,760	$	27,102	$	67,000	$	19,121
Non-compete agreements	2		4,710		3,283		4,130		2,375
Trademarks	21		43,882		5,479		35,042		3,843
Design technology and other intangibles	10		23,070		6,775		21,300		4,380

Total amortizable intangible assets		$	162,422	$	42,639	$	127,472	$	29,719

Aggregate amortization expense for amortizable intangibles for all operations for the fiscal years ended July 31, 2014, 2013 and 2012 was $12,984, $11,037 and $11,135, respectively, including $12,920, $10,460 and $10,651, respectively, for continuing operations. The dealer networks are primarily being amortized on an accelerated basis. Non-compete agreements, trademarks and other intangibles are amortized on a straight-line basis. The increase in amortizable intangible assets in fiscal 2014 is due to the acquisitions of Livin’ Lite, Bison and KZ as more fully described in Note 2 to the Consolidated Financial Statements.

Estimated Amortization Expense:


For the fiscal year ending July 31, 2015	$	14,452
For the fiscal year ending July 31, 2016		13,213
For the fiscal year ending July 31, 2017		12,399
For the fiscal year ending July 31, 2018		11,650
For the fiscal year ending July 31, 2019		10,661
For the fiscal year ending July 31, 2020 and thereafter		57,408

	$	119,783

See Note 3 to the Consolidated Financial Statements for discussion of goodwill and other intangibles asset impairment charges recognized related to discontinued operations.

For the annual goodwill impairment test at April 30, 2014, 2013 and 2012, management engaged an independent valuation firm to assist in its impairment assessment reviews. The fair value of each of the Company’s reporting units for purposes of goodwill testing, based on Level 3 inputs as defined by ASC 820, was determined by employing a discounted cash flow methodology, and, when appropriate, a market approach. As a result of the April 30, 2014, 2013 and 2012 annual impairment assessments, no impairment of goodwill was identified.

Changes in the carrying amount of goodwill by reportable segment as of July 31, 2014 and 2013 are summarized as follows:


	Towables		Motorized			Bus			Total
Balance at July 31, 2012:
Goodwill	$	238,103	$	17,252		$	7,106		$	262,461
Accumulated impairment charges		–		(17,252	)		–			(17,252	)

Net balance at July 31, 2012		238,103		–			7,106			245,209

Fiscal year 13 activity:
Goodwill acquired – Bus		–		–			5,263			5,263
Impairment charges – discontinued operations		–		–			(6,810	)		(6,810	)
Discontinued operations reclassification		–		–			(5,559	)		(5,559	)

Net balance as of July 31, 2013:	$	238,103	$	–		$	–		$	238,103


Fiscal year 14 activity:
Goodwill acquired – Towables		18,476		–			–			18,476

Net balance as of July 31, 2014	$	256,579	$	–		$	–		$	256,579

The components of the net balance as of July 31, 2014 are summarized as follows:



	Towables		Motorized			Total
Goodwill	$	256,579	$	17,252		$	273,831
Accumulated impairment charges		–		(17,252	)		(17,252	)

Net balance as of July 31, 2014:	$	256,579	$	–		$	256,579

- 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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