Goodwill and Other Intangible Assets |
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| Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Goodwill and Other Intangible Assets |
14. Goodwill and Other Intangible Assets:
For the October 1, 2024 goodwill assessment, the Company identified two reporting units, which aligned with the Company’s operating segments at the time. As of September 10, 2025, the Advanced Materials & Catalysts segment was classified as held for sale and as of December 31, 2025, the Advanced Materials & Catalysts segment was sold. See Note 4 for additional information. The Company has identified one reporting unit and one reporting segment, Ecoservices, as of December 31, 2025. The following relates to our remaining Ecoservices reporting unit, unless otherwise stated.
The carrying amount of goodwill associated with the Ecoservices segment was unchanged for the year ended December 31, 2024. The following table provides a summary of the change in the carrying amount of goodwill associated with the Ecoservices segment for the year ended December 31, 2025:
The Company completed its annual goodwill impairment test as of October 1, 2025 and 2024. 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 its Ecoservices reporting unit. The quantitative test identifies both the potential existence of impairment and the amount of impairment loss.
The Company determined the fair value of its reporting unit 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 the 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, 2025, the fair value of the Company’s Ecoservices reporting unit exceeded its respective carrying value and therefore, no goodwill impairment exists for the year ended December 31, 2025.
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, 2025 and 2024. The Company bypassed the option to perform the qualitative assessment and proceeded directly to performing the quantitative impairment test. 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 impairment of the Company’s indefinite-lived intangible assets for the years ended December 31, 2025 and 2024.
Gross carrying amounts and accumulated amortization for intangible assets other than goodwill are as follows:
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.
Amortization expense related to technical know-how is included in cost of goods sold in the consolidated statements of (loss) income and was $2,165 for the years ended December 31, 2025, 2024 and 2023. Amortization expense related to customer relationships, non-compete agreements, and trade names is included in other operating expense, net in the consolidated statements of (loss) income and was $8,626 for the year ended December 31, 2025 and $8,520 for the years ended December 31, 2024 and 2023, respectively.
Estimated future aggregate amortization expense of intangible assets is as follows:
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