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INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS | 12 Months Ended
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Jul. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract] |
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, 2019 |  |  | July 31, 2018 |
|  | Weighted-Average |  |  |  |  |  |  |  |  |  |  |  |  |
|  | Remaining |  |  |  |  |  |  |
|  | Life in Years |  |  |  |  |  | Accumulated |  |  |  |  |  | Accumulated |
|  | at July 31, 2019 |  |  | Cost |  |  | Amortization |  |  | Cost |  |  | Amortization |
Dealer networks/customer relationships |  | 18 |  |  | $ | 750,641 |  |  | $ | 191,017 |  |  | $ | 404,960 |  |  | $ | 147,077 |
Trademarks |  | 18 |  |  |  | 268,778 |  |  |  | 34,518 |  |  |  | 146,117 |  |  |  | 24,364 |
Design technology and other intangibles |  | 9 |  |  |  | 196,616 |  |  |  | 19,689 |  |  |  | 18,200 |  |  |  | 9,555 |
Non-compete agreements |  | – |  |  |  | 450 |  |  |  | 450 |  |  |  | 450 |  |  |  | 383 |
Total amortizable intangible assets |  |  |  |  | $ | 1,216,485 |  |  | $ | 245,674 |  |  | $ | 569,727 |  |  | $ | 181,379 |
Estimated annual amortization expense is as follows:
For the fiscal year ending July 31, 2020 |  | $ | 97,337 |
For the fiscal year ending July 31, 2021 |  |  | 103,968 |
For the fiscal year ending July 31, 2022 |  |  | 107,530 |
For the fiscal year ending July 31, 2023 |  |  | 88,051 |
For the fiscal year ending July 31, 2024 |  |  | 79,588 |
For the fiscal year ending July 31, 2025 and thereafter |  |  | 494,337 |
|  | $ | 970,811 |
The increase in amortizable intangible assets in fiscal 2019 is entirely due to the acquisition of EHG, as more fully described in Note 2 to the Consolidated Financial Statements. For goodwill impairment testing purposes, the Company’s reporting units are generally the same as its operating segments, which are identified in Note 3 to the Consolidated Financial Statements. Fair values are determined by a discounted cash flow model. These estimates are subject to significant management judgment, including the determination of many factors such as sales growth rates, gross margin patterns, cost growth rates, terminal value assumptions and discount rates. Changes in these estimates can have a significant impact on the determination of cash flows and fair value and could potentially result in future material impairments. The Company completed its annual impairment review as of May 31, 2019, and no impairment was identified. There were no impairments of goodwill during fiscal 2018 or 2017. Changes in the carrying amount of goodwill by reportable segment as of July 31, 2019 and 2018 are summarized as follows:
|  | North American |  |  | North American |  |  |  |  |  |  |  |  |  |
|  | Towables |  |  | Motorized |  |  | European |  |  | Other |  |  | Total |
Net balance as of July 31, 2017 |  | $ | 334,822 |  |  | $ | – |  |  | $ | – |  |  | $ | 42,871 |  |  | $ | 377,693 |
Fiscal year 2018 activity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
No activity |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |  |  |  | – |
Net balance as of July 31, 2018 |  | $ | 334,822 |  |  | $ | – |  |  | $ | – |  |  | $ | 42,871 |  |  | $ | 377,693 |
Goodwill acquired |  |  | – |  |  |  | – |  |  |  | 1,008,472 |  |  |  | – |  |  |  | 1,008,472 |
Foreign currency translation |  |  | – |  |  |  | – |  |  |  | (28,133 | ) |  |  | – |  |  |  | (28,133 | )
Net balance as of July 31, 2019 |  | $ | 334,822 |  |  | $ | – |  |  | $ | 980,339 |  |  | $ | 42,871 |  |  | $ | 1,358,032 |
The components of the goodwill balances as of July 31, 2019 and July 31, 2018 are summarized as follows:
|  | North American |  |  | North American |  |  |  |  |  |  |  |  |  |
|  | Towables |  |  | Motorized |  |  | European |  |  | Other |  |  | Total |
Goodwill |  | $ | 343,935 |  |  | $ | 17,252 |  |  | $ | 980,339 |  |  | $ | 42,871 |  |  | $ | 1,384,397 |
Accumulated impairment charges |  |  | (9,113 | ) |  |  | (17,252 | ) |  |  | – |  |  |  | – |  |  |  | (26,365 | )
Net balance as of July 31, 2019 |  | $ | 334,822 |  |  | $ | – |  |  | $ | 980,339 |  |  | $ | 42,871 |  |  | $ | 1,358,032 |
|  | North American |  |  | North American |  |  |  |  |  |  |  |  |  |
|  | Towables |  |  | Motorized |  |  | European |  |  | Other |  |  | Total |
Goodwill |  | $ | 343,935 |  |  | $ | 17,252 |  |  | $ | – |  |  | $ | 42,871 |  |  | $ | 404,058 |
Accumulated impairment charges |  |  | (9,113 | ) |  |  | (17,252 | ) |  |  | – |  |  |  | – |  |  |  | (26,365 | )
Net balance as of July 31, 2018 |  | $ | 334,822 |  |  | $ | – |  |  | $ | – |  |  | $ | 42,871 |  |  | $ | 377,693 |

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