Goodwill and Other Intangible Assets

9 Months Ended

Sep. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

In the second quarter of 2020 the Company recorded impairment charges of $108.9 million related to certain brand/trade names associated with Transamerican Auto Parts which are included in the Aftermarket reporting unit. Further, during the second quarter of 2020, the Company recorded impairment charges of $270.3 million related to goodwill of the Aftermarket reporting unit. Subsequent to the impairment charges recorded in the second quarter, there is no remaining goodwill for the Aftermarket reporting unit. The charges are included in goodwill and other intangible asset impairments on the consolidated statements income. The impairments resulted in a $90.3 million income tax benefit (deferred tax asset) associated with the remaining tax-deductible basis in goodwill and intangibles.

Goodwill and other intangible assets, net of accumulated amortization, as of September 30, 2021 and December 31, 2020 are as follows (in millions):


	September 30, 2021		December 31, 2020
Goodwill	$	393.2	$	397.3
Other intangible assets, net	660.0		686.4
Total goodwill and other intangible assets, net	$	1,053.2	$	1,083.7

The changes in the carrying amount of goodwill by reportable segment for the nine months ended September 30, 2021 and 2020 are as follows (in millions):


	ORV/Snowmobiles		Motorcycles		Global Adjacent Markets		Aftermarket		Boats		Total Polaris
Goodwill	72.9		5.2		92.1		270.3		227.1		$	667.6
Accumulated goodwill impairment losses	—		—		—		(270.3)		—		(270.3)
Balance as of December 31, 2020	$	72.9	$	5.2	$	92.1	$	—	$	227.1	$	397.3


Currency translation effect on foreign goodwill balances	—		—		(4.1)		—		—		(4.1)

Goodwill	72.9		5.2		88.0		270.3		227.1		663.5
Accumulated goodwill impairment losses	—		—		—		(270.3)		—		(270.3)
Balance as of September 30, 2021	$	72.9	$	5.2	$	88.0	$	—	$	227.1	$	393.2


	ORV/Snowmobiles		Motorcycles		Global Adjacent Markets		Aftermarket		Boats		Total Polaris
Goodwill	72.0		5.2		85.2		270.4		227.1		$	659.9
Accumulated goodwill impairment losses	—		—		—		—		—		—
Balance as of December 31, 2019	$	72.0	$	5.2	$	85.2	$	270.4	$	227.1	$	659.9

Impairments	—		—		—		(270.3)		—		(270.3)
Currency translation effect on foreign goodwill balances	0.2		—		3.2		(0.1)		—		3.3

Goodwill	72.2		5.2		88.4		270.3		227.1		663.2
Accumulated goodwill impairment losses	—		—		—		(270.3)		—		(270.3)
Balance as of September 30, 2020	$	72.2	$	5.2	$	88.4	$	—	$	227.1	$	392.9

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


	Weighted-average useful life (years)	September 30, 2021		December 31, 2020
Non-amortizable—indefinite lived:
Brand/trade names		$	333.6	$	334.3
Amortizable:
Non-compete agreements	4	2.6		2.6
Dealer/customer related	17	460.3		460.3
Developed technology	5	9.8		9.9
Total amortizable	16	472.7		472.8
Less: Accumulated amortization		(146.3)		(120.7)
Net amortized other intangible assets		326.4		352.1
Total other intangible assets, net		$	660.0	$	686.4

Amortization expense for intangible assets was $8.5 million and $8.7 million for the three months ended September 30, 2021 and 2020, respectively, and $25.7 million and $27.5 million for the nine months ended September 30, 2021 and 2020, respectively. Estimated amortization expense for the remainder of 2021 through 2026 is as follows: 2021 (remainder), $7.6 million; 2022, $28.3 million; 2023, $25.7 million; 2024, $25.0 million; 2025, $25.0 million; 2026, $23.8 million; and after 2026, $191.0 million. 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 impairments of intangible assets.