Goodwill and Intangible Assets

9 Months Ended

Sep. 30, 2019

Goodwill And Intangible Assets Disclosure [Abstract]

Goodwill And Intangible Assets Disclosure [Text Block]

Note 14 – Goodwill and Other Intangible Assets

The Company completes its annual impairment test during the fourth quarter of each year, or more frequently if triggering events indicate a possible impairment in one or more of its reporting units. As described in Note 4 of Notes to Condensed Consolidated Financial Statements, during the third quarter of 2019, the Company changed its reportable segments and associated reporting units. In connection with this change, the Company performed a qualitative assessment and concluded that there was no evidence of events or circumstances that would indicate a material change from the Company’s prior year quantitative impairment assessment. The Company has recorded no impairment charges in its past and continually evaluates financial performance, economic conditions and other relevant developments in assessing if an interim period impairment test for one or more of its reporting units is necessary.

In connection with the change in its reportable segments, noted above, the Company reallocated existing goodwill to each of the new reportable segments and associated reporting units, based on management’s estimate of the relative fair value of each reporting unit. The result of this reallocation of goodwill has been recast to the following disclosure of goodwill, by reportable segment, as of December 31, 2018. Changes in the carrying amount of goodwill for the nine months ended September 30, 2019 were as follows:

								Global
								Specialty
		Americas		EMEA		Asia/Pacific		Businesses		Total
Balance as of December 31, 2018		$	28,464	$	17,423	$	13,149	$	24,297	$	83,333
	Goodwill acquired		233,301		99,894		138,372		12,354		483,921
	Currency translation adjustments		(1,407)		(2,711)		(4,946)		(867)		(9,931)
Balance as of September 30, 2019		$	260,358	$	114,606	$	146,575	$	35,784	$	557,323

Gross carrying amounts and accumulated amortization for definite-lived intangible assets as of September 30, 2019 and December 31, 2018 were as follows:

	Gross Carrying				Accumulated
	Amount				Amortization
	2019		2018		2019		2018
Customer lists and rights to sell	$	735,760	$	74,989	$	37,850	$	29,587
Trademarks, formulations and product technology		141,908		33,275		18,943		16,469
Other		5,780		5,840		5,707		5,566
Total definite-lived intangible assets	$	883,448	$	114,104	$	62,500	$	51,622

The Company recorded $9.2 million and $12.8 million of amortization expense for the three and nine months ended September 30, 2019, respectively. Comparatively, the Company recorded $1.8 million and $5.5 million of amortization expense for the three and nine months ended September 30, 2018, respectively. Estimated annual aggregate amortization expense for the current year and subsequent five years is as follows:

For the year ended December 31, 2019	$	18,261
For the year ended December 31, 2020		51,141
For the year ended December 31, 2021		50,805
For the year ended December 31, 2022		50,654
For the year ended December 31, 2023		50,441
For the year ended December 31, 2024		50,015

The Company has three indefinite-lived intangible assets totaling $243.1 million as of September 30, 2019, including $242.0 million of indefinite-lived intangible assets for trademarks and tradenames associated with the Houghton Combination. Comparatively, the Company had two indefinite-lived intangible assets totaling $1.1 million as of December 31, 2018.