Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives. Topic 350 requires that these assets be reviewed for impairment at least annually. An impairment charge for goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than its carrying amount. The Company performed the annual impairment test as of December 31, 2015 and 2014. The results of the impairment test indicated that no goodwill or intangible impairment existed as of the test date. The Company has had no historical impairments of goodwill. In accordance with Topic 350, the Company will continue to complete an impairment analysis on an annual basis or more frequently if an event or circumstance that would more likely than not reduce the fair value of a reporting unit below its carrying amount occurs. Goodwill and other intangible assets, net, consist of $131,014,000 and $123,031,000 of goodwill and $105,103,000 and $100,935,000 of intangible assets, net of accumulated amortization, for the periods ended December 31, 2015 and 2014, respectively.

Additions to goodwill and other intangible assets in 2015 relate primarily to the acquisitions of Timbersled and Hammerhead in April 2015, and the acquisition of certain assets of 509 in December 2015. For these acquisitions, the respective aggregate 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. Timbersled, Hammerhead and 509's financial results are included in the Company’s consolidated results from the respective dates of acquisition. Pro forma financial results are not presented as the acquisitions are not material to the consolidated financial statements. As of December 31, 2015, the purchase price allocations for these acquisitions remain preliminary.

The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as follows (in thousands):



	2015			2014
Balance as of beginning of year	$	123,031		$	126,697
Goodwill from businesses acquired	17,010			7,456
Currency translation effect on foreign goodwill balances	(9,027		)	(11,122		)
Balance as of end of year	$	131,014		$	123,031

For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2015 and 2014 are as follows (in thousands):



	2015						2014
	Gross Amount			Accumulated Amortization			Gross Amount			Accumulated Amortization
Other intangible assets, beginning	$	124,093		$	(23,158	)	$	116,279		$	(13,268	)
Intangible assets acquired during the period	20,779			—			16,050			—
Amortization expense	—			(12,136		)	—			(11,599		)
Currency translation effect on foreign balances	(6,041		)	1,566			(8,236		)	1,709
Other intangible assets, ending	$	138,831		$	(33,728	)	$	124,093		$	(23,158	)

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



December 31, 2015	Estimated Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Non-compete agreements	5	$	540	$	(401	)	$	139
Dealer/customer related	7	67,079		(24,069		)	43,010
Developed technology	5-7	19,261		(9,258		)	10,003
Total amortizable		86,880		(33,728		)	53,152
Non-amortizable—brand/trade names		51,951		—			51,951
Total other intangible assets, net		$	138,831	$	(33,728	)	$	105,103

December 31, 2014	Estimated Life (Years)	Gross Carrying Amount		Accumulated Amortization			Net
Non-compete agreements	5	$	540	$	(293	)	$	247
Dealer/customer related	7	62,758		(16,361		)	46,397
Developed technology	5-7	14,571		(6,504		)	8,067
Total amortizable		77,869		(23,158		)	54,711
Non-amortizable—brand/trade names		46,224		—			46,224
Total other intangible assets, net		$	124,093	$	(23,158	)	$	100,935

Amortization expense for intangible assets for the year ended December 31, 2015 and 2014 was $12,136,000 and $11,599,000. Estimated amortization expense for 2016 through 2020 is as follows: 2016, $13,000,000; 2017, $13,000,000; 2018, $10,800,000; 2019, $9,200,000; 2020, $4,400,000; and after 2020, $2,800,000. 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.

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