XML 30 R15.htm IDEA: XBRL DOCUMENT v3.22.0.1
Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets
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 impairments resulted in a $90.3 million income tax benefit (deferred tax asset) associated with the remaining tax-deductible basis in goodwill and intangibles.
In the fourth quarter of 2021, the Company completed the annual goodwill and indefinite lived intangible asset impairment tests. It was determined that goodwill and the remaining indefinite lived intangible assets were not impaired.
Goodwill and other intangible assets, net of accumulated amortization, as of December 31, 2021 and 2020 are as follows (in millions):
20212020
Goodwill$391.3 $397.3 
Other intangible assets, net646.2 686.4 
Total goodwill and other intangible assets, net$1,037.5 $1,083.7 
There were no material additions to goodwill and other intangible assets in 2021 and 2020. The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2021 and 2020 were as follows (in millions):
ORV/SnowmobilesMotorcyclesGlobal Adjacent MarketsAftermarketBoatsTotal
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 balances0.1 — (6.1)— — (6.0)
Goodwill$73.0 $5.2 $86.0 $270.3 $227.1 $661.6 
Accumulated goodwill impairment losses— — — (270.3)— (270.3)
Balance as of December 31, 2021$73.0 $5.2 $86.0 $— $227.1 $391.3 
ORV/SnowmobilesMotorcyclesGlobal Adjacent MarketsAftermarketBoatsTotal
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 balances0.9 — 6.9 (0.1)— 7.7 
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 
For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2021 and 2020 are as follows (in millions):
20212020
Gross
Amount		Accumulated
Amortization		Gross
Amount		Accumulated
Amortization
Other intangible assets, beginning $807.1 $(120.7)$956.8 $(126.5)
Intangible assets disposed of during the period(25.8)20.7 (41.7)41.7 
Amortization expense — (34.0)— (36.1)
Impairments— — (108.9)— 
Currency translation effect on foreign balances(1.1)— 0.9 0.2 
Other intangible assets, ending $780.2 $(134.0)$807.1 $(120.7)
The components of other intangible assets were as follows (in millions):
December 31, 2021Weighted-average useful life (years)Gross Carrying
Amount		Accumulated
Amortization		Net
Non-compete agreements
4$2.6 $(2.3)$0.3 
Dealer/customer related
17437.6 (121.9)315.7 
Developed technology
59.9 (9.8)0.1 
Total amortizable
17450.1 (134.0)316.1 
Non-amortizable—brand/trade names
330.1 — 330.1 
Total other intangible assets, net
$780.2 $(134.0)$646.2 
December 31, 2020Weighted-average useful life (years)Gross Carrying
Amount		Accumulated
Amortization		Net
Non-compete agreements4$2.6 $(1.6)$1.0 
Dealer/customer related
17460.3 (110.8)349.5 
Developed technology
59.9 (8.3)1.6 
Total amortizable
16472.8 (120.7)352.1 
Non-amortizable—brand/trade names
334.3 — 334.3 
Total other intangible assets, net
$807.1 $(120.7)$686.4 
Amortization expense for intangible assets for the year ended December 31, 2021 and 2020 was $34.0 million and $36.1 million, respectively. Estimated amortization expense for 2022 through 2026 is as follows: 2022, $26.2 million; 2023, $25.1 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.