Goodwill and Intangible Assets

12 Months Ended

Dec. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Goodwill and Intangible Assets

In connection with the LiveWire Transaction that closed on September 26, 2022, the Company reorganized its business into three segments: Harley-Davidson Motor Company (HDMC), LiveWire, and Harley-Davidson Financial Services (HDFS) during the fourth quarter of 2022. Refer to Note 19 of the Notes to Consolidated financial statements for additional information about the change in segments.

As a result of the change in segments, the Company reallocated the goodwill previously held by the Motorcycles and Related Products segment between the HDMC and LiveWire segments. The allocation of goodwill has been retrospectively reflected in the table below. The Company tested goodwill for impairment before and after the change in segments. The Company determined no adjustments to goodwill were required as a result of those reviews.

Changes in the carrying amount of goodwill in the HDMC and LiveWire segments for the years ended December 31, was as follows (in thousands): 

	2022
	HDMC		LiveWire		Total
Balance, beginning of period	$	54,850	$	8,327	$	63,177
Currency translation	(1,087)		—		(1,087)
Balance, end of period	$	53,763	$	8,327	$	62,090

	2021
	HDMC		LiveWire		Total
Balance, beginning of period	$	57,649	$	8,327	$	65,976
Currency translation	(2,799)		—		(2,799)
Balance, end of period	$	54,850	$	8,327	$	63,177

The HDFS segment had no goodwill at December 31, 2022 or December 31, 2021.

Intangible assets, excluding goodwill, consist primarily of customer relationships and trademarks with useful lives ranging from 5 to 20 years. Intangible assets are amortized on a straight-line basis over their estimated useful lives. Intangible assets are recorded in Other long-term assets on the Consolidated balance sheets. Intangible assets at December 31, were as follows (in thousands):

	2022		2021
Gross carrying amount	$	10,864	$	11,300
Accumulated amortization	(4,472)		(3,786)
	$	6,392	$	7,514

Amortization of intangible assets, excluding goodwill, recorded in Selling, administrative and engineering expense on the Consolidated statements of operations was $0.8 million, $0.4 million and $1.1 million for 2022, 2021 and 2020, respectively. Future amortization of the Company's intangible assets as of December 31, 2022 is as follows (in thousands):

2023	$	825
2024	669
2025	617
2026	617
2027	617
Thereafter	3,047
	$	6,392