INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS

12 Months Ended

Jul. 31, 2015

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, 2015				July 31, 2014
	Weighted Average Years Remaining Life	Cost		Accumulated Amortization		Cost		Accumulated Amortization
Dealer networks/customer relationships	10	$	143,860	$	37,194	$	90,760	$	27,102
Trademarks	19		55,282		7,608		43,882		5,479
Design technology and other intangibles	9		22,400		8,168		23,070		6,775
Non-compete agreements	3		4,710		4,264		4,710		3,283

Total amortizable intangible assets		$	226,252	$	57,234	$	162,422	$	42,639

Aggregate amortization expense for amortizable intangibles for all operations for the fiscal years ended July 31, 2015, 2014 and 2013 was $16,015, $12,984 and $11,037, respectively, including $16,015, $12,920 and $10,460, respectively, for continuing operations. The dealer networks and customer relationships are being amortized on an accelerated basis. Trademarks, design technology and other intangibles and non-compete agreements are amortized on a straight-line basis. The increase in amortizable intangible assets in fiscal 2015 is due to the acquisitions of Postle and CRV/DRV as more fully described in Note 2 to the Consolidated Financial Statements.

Estimated Amortization Expense:


For the fiscal year ending July 31, 2016	$	23,440
For the fiscal year ending July 31, 2017		20,671
For the fiscal year ending July 31, 2018		18,986
For the fiscal year ending July 31, 2019		16,975
For the fiscal year ending July 31, 2020		15,256
For the fiscal year ending July 31, 2021 and thereafter		73,690

	$	169,018

See Note 3 to the Consolidated Financial Statements for discussion of goodwill and other intangibles asset impairment charges recognized related to discontinued operations.

Goodwill is not subject to amortization, but instead is reviewed for impairment by applying a fair-value based test to the Company’s reporting units on an annual basis as of April 30, or more frequently if events or circumstances indicate a potential impairment. The Company’s reporting units are generally the same as its operating segments, which are identified in Note 4 to the Consolidated Financial Statements. Fair values are generally 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, and therefore largely represent Level 3 inputs as defined by ASC 820. 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. Management engages an independent valuation firm to assist in its impairment assessments. As a result of the April 30, 2015, 2014 and 2013 annual impairment assessments, no impairment of goodwill was identified.

Changes in the carrying amount of goodwill by reportable segment as of July 31, 2015, 2014 and 2013 are summarized as follows:


	Towables		Motorized			Other		Total
Balance at July 31, 2013:
Goodwill	$	238,103	$	17,252		$	–	$	255,355
Accumulated impairment charges		–		(17,252	)		–		(17,252	)

Net balance as of July 31, 2013:		238,103		–			–		238,103

Fiscal year 14 activity:
Goodwill acquired		18,476		–			–		18,476

Net balance as of July 31, 2014		256,579		–			–		256,579

Fiscal year 15 activity:
Goodwill acquired		13,172		–			42,871		56,043

Net balance as of July 31, 2015	$	269,751	$	–		$	42,871	$	312,622


The components of the net balance as of July 31, 2015 are summarized as follows:

	Towables		Motorized			Other		Total
Goodwill	$	269,751	$	17,252		$	42,871	$	329,874
Accumulated impairment charges		–		(17,252	)		–		(17,252	)

Net balance as of July 31, 2015:	$	269,751	$	–		$	42,871	$	312,622

- 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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