Harley Davidson 2015 Annual Report Download - page 65

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65
The following table summarizes the preliminary fair values of the Deeley Imports assets acquired and liabilities assumed
at the date of acquisition (in thousands):
August 4, 2015
Current assets $ 11,088
Property, plant and equipment 144
Intangible assets 20,842
Goodwill 28,567
Total assets 60,641
Current liabilities 731
Net assets acquired $ 59,910
As noted above, in conjunction with the acquisition of certain assets and assumption of certain liabilities of Deeley
Imports, the Company recorded goodwill of $28.6 million, all of which the Company believes is tax deductible, and intangible
assets with an initial fair value of $20.8 million. Of the total intangible assets acquired, $13.3 million was assigned to
reacquired distribution rights with a useful life of two years and $7.5 million was assigned to customer relationships with a
useful life of twenty years. The Company agreed to reimburse Deeley Imports for certain severance costs associated with the
Transaction resulting in $3.3 million of expense included in selling, administrative and engineering expense in the third quarter
of 2015. The Company did not acquire any cash as part of the Transaction.
4. Goodwill and Intangible Assets
The following table summarizes changes in the carrying amount of goodwill in the Motorcycles segment for the
following years ended December 31 (in thousands):
2015 2014 2013
Balance, beginning of period $ 27,752 $ 30,452 $ 29,530
Business acquisitions 28,567 — —
Currency translation (2,137)(2,700) 922
Balance, end of period $ 54,182 $ 27,752 $ 30,452
The following table summarizes the Motorcycles segment intangible assets other than goodwill at December 31 (in
thousands):
2015
Gross
Carrying
Amount Accumulated
Amortization Net
Estimated
useful life
(years)
Intangible assets other than goodwill
Reacquired distribution rights $ 12,614 $ (2,628) $ 9,986 2
Customer relationships 7,116 (148) 6,968 20
Total other intangible assets $ 19,730 $ (2,776) $ 16,954
Intangible assets other than goodwill are included in other long-term assets on the Company's consolidated balance
sheets. The gross carrying amounts at December 31 differs from the acquisition date amounts due to changes in foreign
currency exchange rates.