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Goodwill and Other Intangible Assets
6 Months Ended
Jun. 30, 2022
Goodwill And Other Intangible Assets [Abstract]  
Goodwill And Other Intangible Assets [Text Block]
Note 13 – Goodwill and Other Intangible Assets
Changes in the carrying amount of goodwill for the six months ended June 30, 2022
 
were as follows:
Global
Specialty
Americas
EMEA
Asia/Pacific
Businesses
Total
Balance as of December 31, 2021
$
214,023
$
135,520
$
162,458
$
119,193
 
$
631,194
Goodwill additions
1,752
32
1,784
Currency translation adjustments
 
237
(9,969)
(8,185)
(4,894)
(22,811)
Balance as of June 30, 2022
$
216,012
$
125,551
$
154,273
$
114,331
 
$
610,167
Gross carrying amounts and accumulated amortization for definite-lived
 
intangible assets as of June 30, 2022 and December 31,
2021 were as follows:
Gross Carrying
Accumulated
Amount
Amortization
2022
2021
2022
2021
Customer lists and rights to sell
$
828,690
 
$
853,122
 
$
167,145
 
$
147,858
Trademarks, formulations and product
 
technology
 
156,262
 
 
163,974
 
 
41,640
 
 
38,747
Other
 
6,269
 
 
6,309
 
 
5,933
 
 
5,900
Total definite-lived
 
intangible assets
$
991,221
 
$
1,023,405
 
$
214,718
 
$
192,505
The Company amortizes definite-lived intangible assets on a straight-line basis over
 
their useful lives.
 
The Company recorded
$
14.7
 
million and $
29.2
 
million of amortization expense for the three and six months ended June
 
30, 2022, respectively.
 
Comparatively,
 
the Company recorded $
15.0
 
million and $
29.8
 
million of amortization expense for the three and six months ended
June 30, 2021, respectively.
Estimated annual aggregate amortization expense for the current year
 
and subsequent five years is as follows:
For the year ended December 31, 2022
$
57,515
For the year ended December 31, 2023
57,349
For the year ended December 31, 2024
56,760
For the year ended December 31, 2025
55,970
For the year ended December 31, 2026
55,752
For the year ended December 31, 2027 and beyond
522,946
The Company had four indefinite-lived intangible assets totaling
 
$
186.1
 
million as of June 30, 2022, including $
185.0
 
million of
indefinite-lived intangible assets for trademarks and tradename associated
 
with the Combination.
 
Comparatively, the Company had
four indefinite-lived intangible assets for trademarks and tradename
 
totaling $
196.9
 
million as of December 31, 2021.
The Company completes its annual goodwill and indefinite-lived intangible
 
asset impairment test during the fourth quarter of
each year, or more frequently if triggering
 
events indicate a possible impairment.
 
The Company continually evaluates financial
performance, economic conditions and other relevant developments
 
in assessing if a triggering event indicates that it is more likely
than not that the carrying value of any of the Company’s
 
reporting units or indefinite-lived or long-lived assets is not recoverable.
 
The
Company continues to monitor various financial, economic and
 
geopolitical conditions impacting the Company,
 
including the Russia-
Ukraine war and the Company’s decision
 
to cease operations in Russia, raw material, supply chain, and logistics cost escalation,
 
and
rising interest rates and cost of capital among other factors.
 
The Company concluded that these and other factors which have and
continue to impact the Company did not represent a triggering event as of June 30, 2022.
 
The Company continues to take action to
offset these headwinds including, but not limited to, implementing
 
selling price increases aimed at offsetting raw material costs and
ongoing inflationary pressures.
 
However, if the Company is unable to successfully
 
implement these actions and future or projected
financial performance declines, then it is possible any of these financial, economic
 
or geopolitical conditions could represent a
triggering event in the future and could lead to a potential impairment of the
 
Company’s reporting unit goodwill
 
or other indefinite-
lived or long-lived assets.