Annual report [Section 13 and 15(d), not S-K Item 405]

Goodwill and Other Intangible Assets

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Goodwill and Other Intangible Assets
 12 Months Ended
Dec. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Other Intangible Assets
14. Goodwill and Other Intangible Assets:
The changes in the carrying amount of goodwill for the years ended December 31, 2024 and 2023 is summarized as follows:
Ecoservices Advanced Materials & Catalysts Total
Balance as of December 31, 2022 $ 326,589  $ 76,574  $ 403,163 
Foreign exchange impact —  1,307  1,307 
Balance as of December 31, 2023 326,589  77,881  404,470 
Foreign exchange impact —  (368) (368)
Balance as of December 31, 2024 $ 326,589  $ 77,513  $ 404,102 
The Company completed its annual goodwill impairment test as of October 1, 2024 and 2023. For the annual assessments, the Company bypassed the option to perform the qualitative assessment and proceeded directly to performing the quantitative goodwill impairment test for each of its reporting units. The quantitative test identifies both the potential existence of impairment and the amount of impairment loss. For each of the October 1, 2024 and 2023 assessments, the Company identified two reporting units, which align with the Company’s operating segments.
The Company determined the fair value of its reporting units using both a market approach and an income, or discounted cash flow, approach. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.
The Company estimates reporting unit market approach fair value using publicly traded comparable company values and applies the selected market multiples to each reporting unit’s trailing twelve months Adjusted EBITDA. The Company estimates reporting unit income-based fair value using the discounted cash flow approach. This approach requires use of significant assumptions about future cash flows and based on management’s assessment of a number of factors. Such factors include reporting unit revenue growth rates from implementation of strategic plans, operating margin growth rates, the perpetual growth rate, and the weighted average cost of capital, as well as the reporting unit’s recent performance and management’s ability to execute on planned future strategic initiatives. Discount rate assumptions are based on an assessment of the risk inherent in those future cash flows.
As of October 1, 2024, the fair values of each of the Company’s reporting units exceeded their respective carrying values and therefore, no goodwill impairment exists for the year ended December 31, 2024. Although the estimated fair value of the Advanced Materials & Catalysts reporting unit exceeded its carrying value by approximately 15%, the Company has experienced unfavorable effects on current operations resulting from certain macroeconomic and industry factors in specific end uses during the year ended December 31, 2024. Prolonged unfavorable effects could adversely impact the estimated fair value of the Advanced Materials & Catalysts reporting unit in future periods and may result in impairment charges.
In addition to the annual goodwill impairment assessment, the Company also performed the annual impairment test over its other indefinite-lived intangible assets as of October 1, 2024 and 2023. As part of the October 1, 2024 test, the Company recognized an impairment charge of $3,900 related to the Advanced Materials & Catalysts in-process research and development (“IPR&D”) intangible asset upon the conclusion that the associated project could no longer support the valuation due to extended time to commercialization and reductions in associated forecasted revenues. The fair values of the Company’s indefinite-lived trade names were in excess of their carrying amounts as of the respective testing dates, and as such, there was no further impairment of the Company’s indefinite-lived intangible assets for the years ended December 31, 2024 and 2023.
Gross carrying amounts and accumulated amortization for intangible assets other than goodwill are as follows:
December 31, 2024 December 31, 2023
Gross
Carrying
Amount		 Accumulated
Amortization		 Impairment Charge Net
Balance		 Gross
Carrying
Amount		 Accumulated
Amortization		 Net
Balance
Technical know-how $ 55,217  $ (30,907) $ —  $ 24,310  $ 55,350  $ (27,472) $ 27,878 
Customer relationships 130,834  (86,348) —  44,486  130,912  (76,634) 54,278 
Non-compete agreements 700  (537) —  163  700  (397) 303 
Trademarks 7,484  (4,324) —  3,160  7,521  (3,844) 3,677 
Trade names 1,600  (613) 987  1,600  (453) 1,147 
Total definite-lived intangible assets 195,835  (122,729) —  73,106  196,083  (108,800) 87,283 
Indefinite-lived trade names 25,307  —  —  25,307  25,367  —  25,367 
IPR&D 3,900  —  (3,900) —  3,900  —  3,900 
Total intangible assets $ 225,042  $ (122,729) $ (3,900) $ 98,413  $ 225,350  $ (108,800) $ 116,550 
The Company amortizes technical know-how over periods that range from ten years to twenty years, customer relationships over periods that range from ten years to fifteen years, non-compete agreements over five years, trademarks over fifteen years, and trade names over ten years. IPR&D intangible assets are considered indefinite-lived until such time as the associated projects are completed, at which time amortization commences on the assets, or abandoned, which results in the impairment of the assets.
Amortization expense related to technical know-how is included in cost of goods sold in the consolidated statements of income and was $3,495, $3,482 and $3,480 for the years ended December 31, 2024, 2023 and 2022, respectively. Amortization expense related to customer relationships, non-compete agreements, trademarks, and trade names is included in other operating expense, net in the consolidated statements of income and was $10,585, $10,565 and $10,562 for the years ended December 31, 2024, 2023 and 2022, respectively.
Estimated future aggregate amortization expense of intangible assets is as follows:
Year 
Amount 
2025 $ 14,067 
2026 12,912 
2027 12,370 
2028 12,221 
2029 10,033 
Thereafter 11,503 
Total estimated future aggregate amortization expense $ 73,106