GOODWILL AND OTHER INTANGIBLE ASSETS |
GOODWILL AND OTHER INTANGIBLE ASSETS The changes in the carrying amount of goodwill by reportable segment are as follows (in thousands):
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Fire Safety |
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Oil Additives |
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Total |
Predecessor |
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Balance, December 31, 2019 |
$ |
354,827 |
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$ |
118,367 |
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|
$ |
473,194 |
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Business acquired |
6,906 |
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— |
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|
6,906 |
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Foreign currency translation |
1,034 |
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|
907 |
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|
1,941 |
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Balance, December 31, 2020 |
362,767 |
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|
119,274 |
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|
482,041 |
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Business acquired |
5,385 |
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— |
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|
5,385 |
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Foreign currency translation |
286 |
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(605) |
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(319) |
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Balance, November 8, 2021 |
$ |
368,438 |
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$ |
118,669 |
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$ |
487,107 |
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Successor |
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Balance, November 9, 2021 |
$ |
871,425 |
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$ |
174,470 |
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$ |
1,045,895 |
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Foreign currency translation |
(3,618) |
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(952) |
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(4,570) |
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Balance, December 31, 2021 |
$ |
867,807 |
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$ |
173,518 |
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$ |
1,041,325 |
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Intangible assets and related accumulated amortization as of December 31, 2021 and 2020 are as follows (in thousands):
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Successor - December 31, 2021 |
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Estimated Useful Life (in years) |
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Gross Value |
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Foreign Currency Translation |
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Accumulated Amortization |
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Net Book Value |
Definite Lived Intangible Assets: |
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Existing technology and patents |
20 |
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$ |
250,000 |
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$ |
(836) |
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$ |
(1,796) |
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$ |
247,368 |
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Customer lists |
20 |
|
761,000 |
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(2,059) |
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(5,482) |
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|
753,459 |
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Tradenames |
20 |
|
101,000 |
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(268) |
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(727) |
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|
100,005 |
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Balance, December 31, 2021 |
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|
$ |
1,112,000 |
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|
$ |
(3,163) |
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|
$ |
(8,005) |
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$ |
1,100,832 |
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Predecessor - December 31, 2020 |
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Estimated Useful Life (in years) |
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Gross Value |
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Foreign Currency Translation |
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Accumulated Amortization |
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Net Book Value |
Definite Lived Intangible Assets: |
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Existing technology |
15 |
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$ |
158,730 |
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$ |
1,747 |
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$ |
(25,903) |
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$ |
134,574 |
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Customer lists |
10 |
|
419,900 |
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|
96 |
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(115,688) |
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|
304,308 |
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Patents |
7 |
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1,759 |
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|
136 |
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(541) |
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|
1,354 |
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Tradenames |
10 |
|
900 |
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|
2 |
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(188) |
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|
714 |
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Indefinite Lived Intangible Assets: |
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Tradenames |
Indefinite |
|
32,700 |
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|
50 |
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— |
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|
32,750 |
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Balance, December 31, 2020 |
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|
$ |
613,989 |
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$ |
2,031 |
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|
$ |
(142,320) |
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$ |
473,700 |
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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 $51.1 million, respectively.
Estimated annual amortization expense of intangible assets for the five years subsequent to December 31, 2021 and thereafter is as follows (in thousands):
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Years Ending December 31: |
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Amount |
2022 |
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$ |
55,600 |
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2023 |
|
55,600 |
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2024 |
|
55,600 |
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2025 |
|
55,600 |
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2026 |
|
55,600 |
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Thereafter |
|
822,832 |
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Total |
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$ |
1,100,832 |
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