Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Note 8. Goodwill and Intangible Assets

Goodwill at June 30, 2019 increased to $209,773,000 from $55,816,000 at December 31, 2018. This $153,957,000 increase was primarily due to the Jack Wolfskin acquisition in January 2019 (see Note 4), which increased goodwill by $154,234,000. The remaining change was related to changes in foreign currency rates period over period. The Company's goodwill is reported in the Golf Equipment and Apparel, Gear and Other operating segments (see Note 18).

In accordance with ASC Topic 350, “Intangibles—Goodwill and Other,” the Company’s goodwill and non-amortizing intangible assets are subject to an annual impairment test or more frequently when impairment indicators are present. There were no impairment charges recognized during the three and six months ended June 30, 2019. The following sets forth the intangible assets by major asset class (dollars in thousands):



	Useful Life (Years)	June 30, 2019							December 31, 2018
	Useful Life (Years)	Gross		Accumulated Amortization			Net Book Value		Gross		Accumulated Amortization			Net Book Value
Non-Amortizing:
Trade name, trademark and trade dress and other	NA	$	457,197		$	—	$	457,197	$	218,364		$	—	$	218,364
Amortizing:
Patents	2-16	31,581			31,568		13		31,581			31,543		38
Distributor, customer relationships and other	1-10	54,448			11,931		42,517		15,780			9,490		6,290
Total intangible assets		$	543,226		$	43,499	$	499,727	$	265,725		$	41,033	$	224,692

Aggregate amortization expense on intangible assets was approximately $1,246,000 and $267,000 for the three months ended June 30, 2019 and 2018, respectively, and $2,466,000 and $534,000 for the six months ended June 30, 2019 and 2018, respectively.

Amortization expense related to intangible assets at June 30, 2019 in each of the next five fiscal years and beyond is expected to be incurred as follows (in thousands):



Remainder of 2019	$	2,427
2020	4,780
2021	4,724
2022	4,548
2023	4,409
Thereafter	21,642
	$	42,530