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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets In the second quarter of 2020, as a result of market and economic conditions resulting from the COVID-19 pandemic, as well as financial performance and restructuring actions, the Company determined that the conditions indicated that indefinite lived intangible assets within the Aftermarket and Boats reporting units are more-likely-than-not impaired and performed an impairment test to compare the fair value of these indefinite lived intangible assets, consisting of certain brand/trade names, with their carrying value. These factors were also indicators during the second quarter of 2020 that it was more-likely-than-not that the fair value of the Aftermarket and Boats reporting units would be less than their respective carrying values. As a result, the Company performed quantitative goodwill impairment tests of the Aftermarket and Boats reporting units. The fair value of each brand/trade name was determined using the relief-from-royalty method. Under the quantitative goodwill impairment test, the fair value of each reporting unit was determined using a discounted cash flow analysis and a market approach. Determining the fair value of brand/trade names and the reporting units required the use of significant judgment, including royalty rates, discount rates, assumptions in the Company’s long-term business plan about future revenues and expenses, capital expenditures, and changes in working capital, which are dependent on internal forecasts, estimation of long-term growth for each reporting unit, and determination of the discount rate. These plans take into consideration numerous factors including historical experience, anticipated future economic conditions, including the impacts from the COVID-19 pandemic, changes in raw material prices and growth expectations for the industries and end markets in which the Company participates. Inputs used to estimate these fair values included significant unobservable inputs that reflect the Company’s assumptions about the inputs that market participants would use and, therefore, the fair value assessments are classified within Level 3 of the fair value hierarchy. As a result of this analysis, during the second quarter of 2020 the Company recorded impairment charges of $108.9 million related to certain brand/trade names associated with Transamerican Auto Parts which are included in the Aftermarket reporting unit. Further, during the second quarter of 2020, the Company recorded impairment charges of $270.3 million related to goodwill of the Aftermarket reporting unit. Subsequent to the impairment charges recorded in the second quarter, there is no remaining goodwill for the Aftermarket reporting unit. The charges are included in goodwill and other intangible asset impairments on the consolidated statements income. The impairments resulted in a $90.3 million income tax benefit (deferred tax asset) associated with the remaining tax-deductible basis in goodwill and intangibles. In the fourth quarter of 2020, we completed the annual goodwill and indefinite lived intangible asset impairment tests. It was determined that goodwill and the remaining indefinite lived intangible assets were not impaired. Goodwill and other intangible assets, net of accumulated amortization, as of December 31, 2020 and 2019 are as follows (in millions):
| 2020 |  | 2019
Goodwill | $ | 397.3 |  |  | $ | 659.9 |
Other intangible assets, net | 686.4 |  |  | 830.3 |
Total goodwill and other intangible assets, net | $ | 1,083.7 |  |  | $ | 1,490.2 |
There were no material additions to goodwill and other intangible assets in 2020 or 2019. The changes in the carrying amount of goodwill for the years ended December 31, 2020 and 2019 are as follows (in millions):
| 2020 |  | 2019
Balance as of beginning of year | $ | 659.9 |  |  | $ | 647.1 |
Goodwill impairment | (270.3) |  |  | — |
Goodwill acquired and related adjustments | — |  |  | 14.1 |
Currency translation effect on foreign goodwill balances | 7.7 |  |  | (1.3) |
Balance as of end of year | $ | 397.3 |  |  | $ | 659.9 |
The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2020 and 2019 are as follows (in millions):
| ORV/Snowmobiles |  | Motorcycles |  | Global Adjacent Markets |  | Aftermarket |  | Boats |  | Total Polaris
Balance as of December 31, 2019 | $ | 72.0 |  |  | $ | 5.2 |  |  | $ | 85.2 |  |  | $ | 270.4 |  |  | $ | 227.1 |  |  | $ | 659.9 |
Impairments | — |  |  | — |  |  | — |  |  | (270.3) |  |  | — |  |  | (270.3) |
Currency translation effect on foreign goodwill balances | 0.9 |  |  | — |  |  | 6.9 |  |  | (0.1) |  |  | — |  |  | 7.7 |
Goodwill | 72.9 |  |  | 5.2 |  |  | 92.1 |  |  | 270.3 |  |  | 227.1 |  |  | 667.6 |
Accumulated goodwill impairment losses* | — |  |  | — |  |  | — |  |  | (270.3) |  |  | — |  |  | (270.3) |
Balance as of December 31, 2020 | $ | 72.9 |  |  | $ | 5.2 |  |  | $ | 92.1 |  |  | $ | — |  |  | $ | 227.1 |  |  | $ | 397.3 |
*There were no impairment losses prior to 2020
| ORV/Snowmobiles |  | Motorcycles |  | Global Adjacent Markets |  | Aftermarket |  | Boats |  | Total Polaris
Balance as of December 31, 2018 | $ | 71.8 |  |  | $ | 3.4 |  |  | $ | 86.8 |  |  | $ | 270.3 |  |  | $ | 214.8 |  |  | $ | 647.1 |
Goodwill acquired and related adjustments | — |  |  | 1.8 |  |  | — |  |  | — |  |  | 12.3 |  |  | 14.1 |
Currency translation effect on foreign goodwill balances | 0.2 |  |  | — |  |  | (1.6) |  |  | 0.1 |  |  | — |  |  | (1.3) |
Balance as of December 31, 2019 | $ | 72.0 |  |  | $ | 5.2 |  |  | $ | 85.2 |  |  | $ | 270.4 |  |  | $ | 227.1 |  |  | $ | 659.9 |
For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2020 and 2019 are as follows (in millions):
| 2020 |  | 2019
| Gross Amount |  | Accumulated Amortization |  | Gross Amount |  | Accumulated Amortization
Other intangible assets, beginning | $ | 956.8 |  |  | $ | (126.5) |  |  | $ | 964.7 |  |  | $ | (94.1) |
Intangible assets acquired during the period | — |  |  | — |  |  | 1.0 |  |  | — |
Intangible assets disposed of during the period | (41.7) |  |  | 41.7 |  |  | (7.1) |  |  | 7.1 |
Amortization expense | — |  |  | (36.1) |  |  | — |  |  | (40.9) |
Impairments | (108.9) |  |  | — |  |  | — |  |  | — |
Currency translation effect on foreign balances | 0.9 |  |  | 0.2 |  |  | (1.8) |  |  | 1.4 |
Other intangible assets, ending | $ | 807.1 |  |  | $ | (120.7) |  |  | $ | 956.8 |  |  | $ | (126.5) |
The components of other intangible assets were as follows (in millions):
December 31, 2020 | Estimated Life (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net
Non-compete agreements | 4 |  | $ | 2.6 |  |  | $ | (1.6) |  |  | $ | 1.0 |
Dealer/customer related | 5-20 |  | 460.3 |  |  | (110.8) |  |  | 349.5 |
Developed technology | 5-7 |  | 9.9 |  |  | (8.3) |  |  | 1.6 |
Total amortizable |  |  | 472.8 |  |  | (120.7) |  |  | 352.1 |
Non-amortizable—brand/trade names |  |  | 334.3 |  |  | — |  |  | 334.3 |
Total other intangible assets, net |  |  | $ | 807.1 |  |  | $ | (120.7) |  |  | $ | 686.4 |
December 31, 2019 | Estimated Life (Years) |  | Gross Carrying Amount |  | Accumulated Amortization |  | Net
Non-compete agreements | 4 |  | $ | 2.6 |  |  | $ | (1.0) |  |  | $ | 1.6 |
Dealer/customer related | 5-20 |  | 499.5 |  |  | (116.1) |  |  | 383.4 |
Developed technology | 5-7 |  | 12.7 |  |  | (9.4) |  |  | 3.3 |
Total amortizable |  |  | 514.8 |  |  | (126.5) |  |  | 388.3 |
Non-amortizable—brand/trade names |  |  | 442.0 |  |  | — |  |  | 442.0 |
Total other intangible assets, net |  |  | $ | 956.8 |  |  | $ | (126.5) |  |  | $ | 830.3 |
Amortization expense for intangible assets for the year ended December 31, 2020 and 2019 was $36.1 million and $40.9 million, respectively. Estimated amortization expense for 2021 through 2025 is as follows: 2021, $33.3 million; 2022, $28.3 million; 2023, $25.7 million; 2024, $25.0 million; 2025, $25.0 million; and after 2025, $214.8 million. 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 impairments of intangible assets.

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- Definition The entire disclosure for goodwill and intangible assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 350 -URI http://asc.fasb.org/topic&trid=2144416 + Details
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