Polaris 2015 Annual Report Download - page 87

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Additions to goodwill and other intangible assets in 2015 relate primarily to the acquisitions of Timbersled
and Hammerhead in April 2015, and the acquisition of certain assets of 509 in December 2015. For these
acquisitions, the respective aggregate purchase price was allocated on a preliminary basis to the assets
acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Timbersled,
Hammerhead and 509’s 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 December 31, 2015, the purchase price allocations for
these acquisitions remain preliminary.
The changes in the carrying amount of goodwill for the years ended December 31, 2015 and 2014 are as
follows (in thousands):
2015 2014
Balance as of beginning of year ..................... $123,031 $126,697
Goodwill from businesses acquired ................... 17,010 7,456
Currency translation effect on foreign goodwill balances .... (9,027) (11,122)
Balance as of end of year .......................... $131,014 $123,031
For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2015
and 2014 are as follows (in thousands):
2015 2014
Gross Accumulated Gross Accumulated
Amount Amortization Amount Amortization
Other intangible assets, beginning .............. $124,093 $(23,158) $116,279 $(13,268)
Intangible assets acquired during the period ...... 20,779 — 16,050 —
Amortization expense ....................... — (12,136) — (11,599)
Currency translation effect on foreign balances .... (6,041) 1,566 (8,236) 1,709
Other intangible assets, ending ................ $138,831 $(33,728) $124,093 $(23,158)
The components of other intangible assets were as follows (in thousands):
Estimated Life Gross Carrying Accumulated
December 31, 2015 (Years) Amount Amortization Net
Non-compete agreements ................ 5 $ 540 $ (401) $ 139
Dealer/customer related ................. 7 67,079 (24,069) 43,010
Developed technology ................... 5–7 19,261 (9,258) 10,003
Total amortizable ...................... 86,880 (33,728) 53,152
Non-amortizable—brand/trade names ....... 51,951 — 51,951
Total other intangible assets, net ........... $138,831 $(33,728) $105,103
Estimated Life Gross Carrying Accumulated
December 31, 2014 (Years) Amount Amortization Net
Non-compete agreements ................ 5 $ 540 $ (293) $ 247
Dealer/customer related ................. 7 62,758 (16,361) 46,397
Developed technology ................... 5–7 14,571 (6,504) 8,067
Total amortizable ...................... 77,869 (23,158) 54,711
Non-amortizable—brand/trade names ....... 46,224 — 46,224
Total other intangible assets, net ........... $124,093 $(23,158) $100,935
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