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Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2015
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
Goodwill and Other Intangible Assets
Goodwill and other intangible assets, net, consisted of $129,580,000 of goodwill and $105,450,000 of intangible assets, net of accumulated amortization, as of June 30, 2015.
Additions to goodwill and other intangible assets relate primarily to the acquisitions of Timbersled Products, Inc. (“Timbersled”) and HH Investment Limited (“Hammerhead”) in April 2015. Timbersled is based in Idaho and is an innovator and market leader in the burgeoning snow bike industry. Hammerhead is based in Shanghai, China and manufactures gasoline powered go-karts, light utility vehicles, and electric utility vehicles. Hammerhead markets its products globally under the Hammerhead Offroad® brand, along with maintaining key private label relationships with other original equipment manufacturers.
For both acquisitions, the respective aggregate purchase prices were allocated on a preliminary basis to the assets acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Timbersled and Hammerhead 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 June 30, 2015, the purchase price allocations for both acquisitions remains preliminary.
In November 2014, the Company acquired certain assets of LSI Products Inc. and Armor Holdings, LLC. (collectively, “Pro Armor”). Pro Armor is an industry-leading brand in performance side-by-side accessories. In January 2015, Polaris completed a non-cash acquisition of the electric motorcycle business from Brammo, Inc. (“Brammo”). Brammo will continue to be a designer and developer of electric vehicle powertrains. As of June 30, 2015, the purchase price allocations for Pro Armor and Brammo remain preliminary.
The changes in the carrying amount of goodwill for the six months ended June 30, 2015 were as follows (in thousands):
 
Six months ended June 30, 2015
Goodwill, beginning of period
$
123,031

Goodwill from businesses acquired
13,614

Currency translation effect on foreign goodwill balances
(7,065
)
Goodwill, end of period
$
129,580


For other intangible assets, the changes in the net carrying amount for the six months ended June 30, 2015 were as follows (in thousands):
 
Six months ended June 30, 2015
 
Gross
Amount
 
Accumulated
Amortization
Other intangible assets, beginning of period
$
124,093

 
$
(23,158
)
Intangible assets acquired during the period
13,695

 

Amortization expense

 
(5,667
)
Foreign currency translation effect on balances
(4,667
)
 
1,154

Other intangible assets, end of period
$
133,121

 
$
(27,671
)

The components of other intangible assets were as follows (in thousands):
 
Total estimated life (years)
 
June 30, 2015
 
December 31, 2014
Non-amortizable—indefinite lived:
 
 
 
 
 
Brand names
 
 
$
47,937

 
$
46,224

Amortizable:
 
 
 
 
 
Non-compete agreements
5
 
540

 
540

Dealer/customer related
7
 
65,176

 
62,758

Developed technology
5-7
 
19,468

 
14,571

Total amortizable
 
 
85,184

 
77,869

Less: Accumulated amortization
 
 
(27,671
)
 
(23,158
)
Net amortized other intangible assets
 
 
57,513

 
54,711

Total other intangible assets, net
 
 
$
105,450

 
$
100,935


Amortization expense for intangible assets for the three months ended June 30, 2015 and 2014 was $2,913,000 and $2,963,000, respectively. Estimated amortization expense for the remainder of 2015 through 2020 is as follows: 2015 (remainder), $6,200,000; 2016, $12,400,000; 2017, $12,000,000; 2018, $10,500,000; 2019, $9,300,000; 2020, $4,400,000; and after 2020, $2,700,000. 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.