Polaris 2013 Annual Report Download - page 85

material losses have been incurred under these agreements during the periods presented. As a part of its
marketing program, Polaris contributes to the cost of dealer financing up to certain limits and subject to
certain conditions. Such expenditures are included as an offset to sales in the accompanying consolidated
statements of income.
Note 5. Goodwill and Other Intangible Assets
ASC Topic 350 prohibits the amortization of goodwill and intangible assets with indefinite useful lives.
Topic 350 requires that these assets be reviewed for impairment at least annually. An impairment charge for
goodwill is recognized only when the estimated fair value of a reporting unit, including goodwill, is less than
its carrying amount. The Company performed the annual impairment test as of December 31, 2013 and 2012.
The results of the impairment test indicated that no goodwill or intangible impairment existed as of the test
date. The Company has had no historical impairments of goodwill. In accordance with Topic 350, the
Company will continue to complete an impairment analysis on an annual basis or more frequently if an event
or circumstance that would more likely than not reduce the fair value of a reporting unit below its carrying
amount occurs. Goodwill and other intangible assets, net, consist of $126,697,000 and $56,324,000 of goodwill
and $103,011,000 and $50,892,000 of intangible assets, net of accumulated amortization, for the periods ended
December 31, 2013 and 2012, respectively.
Additions to goodwill and other intangible assets in 2013 relate primarily to the acquisition of A.M. Holding
S.A.S., which operates under the name Aixam Mega S.A.S. (‘‘Aixam’’), on April 10, 2013. Aixam manufactures
and sells enclosed on-road quadricycles and light duty commercial vehicles. The acquisition strengthens
Polaris’ SV portfolio and enhances the profitability and growth potential of Polaris in Europe. Aixam’s
financial results are included in the Company’s consolidated results from the date of acquisition. Pro forma
financial results are not presented as the acquisition is not material to the consolidated financial statements.
The acquisition of Aixam for $141,189,000, which was funded with cash on hand, was allocated to the assets
acquired and liabilities assumed based on their estimated fair values at the date of acquisition. Net of cash
acquired, the Aixam purchase price was $134,817,000.
The changes in the carrying amount of goodwill for the for the years ended December 31, 2013 and 2012 are
as follows (in thousands):
2013 2012
Balance as of beginning of year ...................... $ 56,324 $44,668
Goodwill acquired during the period .................. 66,085 11,061
Currency translation effect on foreign goodwill balances .... 4,288 595
Balance as of end of year .......................... $126,697 $56,324
For other intangible assets, the changes in the net carrying amount for the years ended December 31, 2013
and 2012 are as follows (in thousands):
For the Year Ended For the Year Ended
December 31, 2013 December 31, 2012
Gross Accumulated Gross Accumulated
Amount Amortization Amount Amortization
Other intangible assets, beginning ............... $ 54,907 $ (4,015) $34,256 $(1,206)
Intangible assets acquired during the period ....... 57,388 — 20,369 —
Amortization expense ....................... — (9,178) — (2,787)
Currency translation effect on foreign balances ..... 3,984 (75) 282 (22)
Other intangible assets, ending ................. $116,279 $(13,268) $54,907 $(4,015)
61