Columbia Sportswear Company Annual report pursuant to Section 13 and 15(d)

Annual report pursuant to Section 13 and 15(d)

Intangible Assets, Net and Goodwill

Intangible Assets, Net and Goodwill

12 Months Ended

Dec. 31, 2015

Goodwill and Intangible Assets Disclosure [Abstract]

INTANGIBLE ASSETS, NET AND GOODWILL

Intangible assets that are determined to have finite lives include patents, purchased technology and customer relationships and are amortized over their estimated useful lives, which range from approximately 3 to 10 years, and are measured for impairment only when events or circumstances indicate the carrying value may be impaired. Goodwill and intangible assets with indefinite useful lives, including trademarks and trade names, are not amortized but are periodically evaluated for impairment. At December 31, 2015 and 2014, the Company determined that its goodwill and intangible assets were not impaired.

Intangible assets

The following table summarizes the Company’s identifiable intangible assets balance (in thousands):



	December 31,
	2015			2014
Intangible assets subject to amortization:
Patents and purchased technology	$	14,198		$	14,198
Customer relationships	23,000			23,000
Gross carrying amount	37,198			37,198
Accumulated amortization:
Patents and purchased technology	(7,992		)	(6,661		)
Customer relationships	(6,043		)	(2,227		)
Accumulated amortization	(14,035		)	(8,888		)
Net carrying amount	23,163			28,310
Intangible assets not subject to amortization	115,421			115,421
Intangible assets, net	$	138,584		$	143,731

Amortization expense for the years ended December 31, 2015, 2014, and 2013 was $5,147,000, $7,057,000 and $1,330,000, respectively. Amortization for the year ended December 31, 2014 included $3,500,000 of amortization related to acquired prAna order backlog, which was fully amortized during the year ended December 31, 2014.

Annual amortization expense is estimated to be as follows for the years 2016 through 2020 (in thousands):



2016	$	5,147
2017	3,883
2018	2,980
2019	2,980
2020	2,537

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details