INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS

12 Months Ended

Jul. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, GOODWILL AND LONG-LIVED ASSETS

The components of amortizable intangible assets are as follows:


		July 31, 2019				July 31, 2018
	Weighted-Average
	Remaining
	Life in Years			Accumulated				Accumulated
	at July 31, 2019	Cost		Amortization		Cost		Amortization
Dealer networks/customer relationships	18	$	750,641	$	191,017	$	404,960	$	147,077
Trademarks	18		268,778		34,518		146,117		24,364
Design technology and other intangibles	9		196,616		19,689		18,200		9,555
Non-compete agreements	–		450		450		450		383
Total amortizable intangible assets		$	1,216,485	$	245,674	$	569,727	$	181,379

Estimated annual amortization expense is as follows:

For the fiscal year ending July 31, 2020	$	97,337
For the fiscal year ending July 31, 2021		103,968
For the fiscal year ending July 31, 2022		107,530
For the fiscal year ending July 31, 2023		88,051
For the fiscal year ending July 31, 2024		79,588
For the fiscal year ending July 31, 2025 and thereafter		494,337
	$	970,811

The increase in amortizable intangible assets in fiscal 2019 is entirely due to the acquisition of EHG, as more fully described in Note 2 to the Consolidated Financial Statements.

For goodwill impairment testing purposes, the Company’s reporting units are generally the same as its operating segments, which are identified in Note 3 to the Consolidated Financial Statements. Fair values are 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. 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.

The Company completed its annual impairment review as of May 31, 2019, and no impairment was identified. There were no impairments of goodwill during fiscal 2018 or 2017.

Changes in the carrying amount of goodwill by reportable segment as of July 31, 2019 and 2018 are summarized as follows:


	North American		North American
	Towables		Motorized		European			Other		Total
Net balance as of July 31, 2017	$	334,822	$	–	$	–		$	42,871	$	377,693
Fiscal year 2018 activity:
No activity		–		–		–			–		–
Net balance as of July 31, 2018	$	334,822	$	–	$	–		$	42,871	$	377,693

Goodwill acquired		–		–		1,008,472			–		1,008,472
Foreign currency translation		–		–		(28,133	)		–		(28,133	)
Net balance as of July 31, 2019	$	334,822	$	–	$	980,339		$	42,871	$	1,358,032

The components of the goodwill balances as of July 31, 2019 and July 31, 2018 are summarized as follows:


	North American			North American
	Towables			Motorized			European		Other		Total
Goodwill	$	343,935		$	17,252		$	980,339	$	42,871	$	1,384,397
Accumulated impairment charges		(9,113	)		(17,252	)		–		–		(26,365	)
Net balance as of July 31, 2019	$	334,822		$	–		$	980,339	$	42,871	$	1,358,032

	North American			North American
	Towables			Motorized			European		Other		Total
Goodwill	$	343,935		$	17,252		$	–	$	42,871	$	404,058
Accumulated impairment charges		(9,113	)		(17,252	)		–		–		(26,365	)
Net balance as of July 31, 2018	$	334,822		$	–		$	–	$	42,871	$	377,693