Perimeter Solutions, SA Post-effective amendment to a registration statement that is not immediately effective upon filing

Post-effective amendment to a registration statement that is not immediately effective upon filing

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

5. GOODWILL AND OTHER INTANGIBLE ASSETS

The changes in the carrying amount of goodwill by reportable segment are as follows (in thousands):


	Fire Safety			Oil Additives			Total
Predecessor
Balance, December 31, 2019	$	354,827		$	118,367		$	473,194
Business acquired		6,906			—			6,906
Foreign currency translation		1,034			907			1,941

Balance, December 31, 2020		362,767			119,274			482,041
Business acquired		5,385			—			5,385
Foreign currency translation		286			(605	)		(319	)

Balance, November 8, 2021	$	368,438		$	118,669		$	487,107



Successor
Balance, November 9, 2021	$	871,425		$	174,470		$	1,045,895
Foreign currency translation		(3,618	)		(952	)		(4,570	)

Balance, December 31, 2021	$	867,807		$	173,518		$	1,041,325

Intangible assets and related accumulated amortization as of December 31, 2021 and 2020 are as follows (in thousands):


	Successor—December 31, 2021
	Estimated Useful Life (in years)		Gross Value		Foreign Currency Translation			Accumulated Amortization			Net Book Value
Definite Lived Intangible Assets:
Existing technology and patents		20	$	250,000	$	(836	)	$	(1,796	)	$	247,368
Customer lists		20		761,000		(2,059	)		(5,482	)		753,459
Tradenames		20		101,000		(268	)		(727	)		100,005

Balance, December 31, 2021			$	1,112,000	$	(3,163	)	$	(8,005	)	$	1,100,832


	Predecessor—December 31, 2020
	Estimated Useful Life (in years)		Gross Value		Foreign Currency Translation		Accumulated Amortization			Net Book Value
Definite Lived Intangible Assets:
Existing technology		15	$	158,730	$	1,747	$	(25,903	)	$	134,574
Customer lists		10		419,900		96		(115,688	)		304,308
Patents		7		1,759		136		(541	)		1,354
Tradenames		10		900		2		(188	)		714
Indefinite Lived Intangible Assets:
Tradenames		Indefinite		32,700		50		—			32,750

Balance, December 31, 2020			$	613,989	$	2,031	$	(142,320	)	$	473,700

On May 7, 2020, the Company recorded an

in-process

research and development intangible asset associated with the LaderaTech acquisition. The intangible asset was completed prior to December 31, 2020 and thus transferred out from indefinite-life intangible assets and into intangible assets subject to amortization. For this reason, the LaderaTech technology was presented as “Existing technology” as of December 31, 2020 along with accumulated amortization.

Amortization expense for definite-lived intangible assets for the Successor Period, 2021 Predecessor Period, 2020 Predecessor Period and 2019 Predecessor Period was $8.0 million, $45.4 million, $51.5 million and $51.1 million, respectively.

Estimated annual amortization expense of intangible assets for the five years subsequent to December 31, 2021 and thereafter is as follows (in thousands):


Years Ending December 31:	Amount
2022	$	55,600
2023		55,600
2024		55,600
2025		55,600
2026		55,600
Thereafter		822,832

Total	$	1,100,832