Goodwill and Other Intangible Assets

Note 4. Goodwill and Other Intangible Assets

Goodwill and other intangible assets, net, consisted of $130,323,000 of goodwill and $107,795,000 of intangible assets, net of accumulated amortization, as of June 30, 2014.

Additions to goodwill and other intangible assets in the first six months of 2014 relate to the acquisition of Kolpin Outdoors, Inc. ("Kolpin") on April 1, 2014. Kolpin is a leading aftermarket brand delivering purpose-built and universal-fit ORV accessories and lifestyle products. The aggregate Kolpin purchase price was allocated on a preliminary basis to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition.

The changes in the carrying amount of goodwill for the six months ended June 30, 2014 were as follows (in thousands):



	Six months ended June 30, 2014
Goodwill, beginning of period	$	126,697
Goodwill acquired during the period	4,345
Currency translation effect on foreign goodwill balances	(719		)
Goodwill, end of period	$	130,323

For other intangible assets, the changes in the net carrying amount for the six months ended June 30, 2014 were as follows (in thousands):



	Six months ended June 30, 2014
	Gross Amount			Accumulated Amortization
Other intangible assets, beginning of period	$	116,279		$	(13,268	)
Intangible assets acquired during the period	11,100			—
Amortization expense	—			(5,708		)
Foreign currency translation effect on balances	(684		)	76
Other intangible assets, end of period	$	126,695		$	(18,900	)

The components of other intangible assets were as follows (in thousands):



	Total estimated life (years)	June 30, 2014			December 31, 2013
Non-amortizable—indefinite lived:
Brand names		$	45,260		$	41,188
Amortized:
Non-compete agreements	5	540			540
Dealer/customer related	7	65,728			59,244
Developed technology	5-7	15,167			15,307
Total amortizable		81,435			75,091
Less: Accumulated amortization		(18,900		)	(13,268		)
Net amortized other intangible assets		62,535			61,823
Total other intangible assets, net		$	107,795		$	103,011

Amortization expense for intangible assets for the three months ended June 30, 2014 and 2013 was $2,963,000 and $2,574,000, respectively. Estimated amortization expense for the remainder of 2014 through 2019 is as follows: 2014 (remainder), $6,000,000; 2015, $11,800,000; 2016, $11,800,000; 2017, $11,500,000; 2018, $9,800,000; 2019, $8,500,000; and after 2019, $3,100,000. The preceding expected amortization expense is an estimate and actual amounts could differ due to additional intangible asset acquisitions, changes in foreign currency rates or impairment of intangible assets.

- 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.

+ References+ Details