| Intangible Assets |
INTANGIBLE ASSETS The Company performed its annual goodwill impairment test during the third quarter of 2022. The Company performed a qualitative assessment of each reporting unit and determined that it was not more-likely-than-not that the fair value of any reporting unit was less than its carrying amount. As a result, no impairments of goodwill were recognized in 2022 and 2021.
The Company also performed its annual indefinite-lived intangible asset impairment test during the third quarter of 2022. The Company performed a qualitative assessment of the indefinite-lived intangible assets and determined that it was not more-likely-than-not that the fair value of any indefinite-lived intangible asset was less than the carrying amount. As a result, no impairments of indefinite-lived intangible assets were recognized in 2022 and 2021.
The changes in the carrying amount of goodwill are as follows:
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December 31,
2022 |
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January 1,
2022 |
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| Balance at beginning of year: |
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|
| Gross goodwill |
$ |
17,668 |
|
|
$ |
17,367 |
|
| Goodwill as of beginning of year |
17,668 |
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|
17,367 |
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| Goodwill acquired during the year |
582 |
|
|
— |
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| Currency translation adjustment |
(882) |
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|
301 |
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| Balance as of end of year |
|
|
|
| Gross goodwill |
17,368 |
|
|
17,668 |
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| Goodwill as of end of year |
$ |
17,368 |
|
|
$ |
17,668 |
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Intangible assets consist of the following:
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As of December 31, 2022 |
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Gross carrying
amount |
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Accumulated
amortization |
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Net carrying
amount |
|
Weighted-average
amortization
period (years) |
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| Amortized intangible assets |
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| Trade name and trademarks |
$ |
2,285 |
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|
$ |
(114) |
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|
$ |
2,171 |
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|
10 |
| Product formulas |
8,701 |
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|
(7,983) |
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|
718 |
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|
8 |
| Customer relationships |
3,313 |
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|
(414) |
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|
2,899 |
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|
4 |
| Non-compete agreements |
467 |
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|
(61) |
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|
406 |
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|
4 |
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| Indefinite-lived intangible assets |
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| Direct sales license |
26,238 |
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|
26,238 |
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|
$ |
41,004 |
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$ |
32,432 |
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| Estimated Amortization Expense: |
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| 2023 |
|
$ |
1,843 |
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| 2024 |
|
1,224 |
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| 2025 |
|
1,154 |
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| 2026 |
|
692 |
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| 2027 |
|
253 |
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| Thereafter |
|
1,028 |
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|
$ |
6,194 |
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As of January 1, 2022 |
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Gross carrying
amount |
|
Accumulated
amortization |
|
Net carrying
amount |
|
Weighted-average
amortization
period (years) |
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| Amortized intangible assets |
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| Trade name and trademarks |
$ |
4,173 |
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|
$ |
(4,173) |
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|
$ |
— |
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|
10 |
| Product formulas |
9,440 |
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|
(7,462) |
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|
1,978 |
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8 |
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| Indefinite-lived intangible assets |
|
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|
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| Direct sales license |
28,464 |
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|
28,464 |
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|
$ |
42,077 |
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|
$ |
30,442 |
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