Effective January 1, 2018, the company early adopted the amended guidance in ASC 350, Intangibles – Goodwill and Other: Simplifying the Test for Goodwill Impairment, which simplifies the measurement of goodwill by eliminating Step 2 from the goodwill impairment test. Under the amended guidance, an entity may first assess qualitative factors to determine whether it is necessary to perform a quantitative goodwill impairment test. If determined to be necessary, the quantitative

impairment test shall be used to identify goodwill impairment and measure the amount of a goodwill impairment loss to be recognized (if any).

The company is required to perform impairment tests related to goodwill annually, which it performs as of October 1, or sooner if an indicator of impairment occurs. Near term industry outlook and the decline in the company’s stock price caused a decline in the company’s market capitalization during the three months ended September 30, 2019. As such, the company determined a triggering event had occurred that required an interim impairment assessment for its ethanol production reporting unit. Due to the impairment indicators noted as a result of these triggering events, the company evaluated goodwill as of September 30, 2019. Significant assumptions inherent in the valuation methodologies for goodwill were employed and include, but are not limited to, market capitalization, prospective financial information, growth rates, discount rates, inflationary factors, and cost of capital. Based on the company’s quantitative evaluation, it was determined that the fair value of the ethanol production reporting unit exceeded its carrying value. As a result, the company concluded that the goodwill assigned to the ethanol production reporting unit was not impaired, but could be at risk of future impairment. The company continues to believe that its long-term financial goals will be achieved. As a result of the analysis, the company did not take a goodwill impairment charge.

The company performed an annual goodwill assessment as of October 1, 2019, and given the quantitative work performed during the third quarter as described above, the company used a qualitative assessment, which resulted in no goodwill impairment. There were no qualitative factors from our interim quantitative goodwill impairment assessment on September 30, 2019 through December 31, 2019 that would suggest that its more likely than not that our goodwill is impaired.

Changes in the carrying amount of goodwill attributable to each business segment during the years ended December 31, 2019 and 2018 were as follows (in thousands):


	Ethanol		Food and
	Production		Ingredients		Partnership		Total
Balance, December 31, 2017	$	30,279	$	142,002	$	10,598	$	182,879
Dispositions ⁽¹⁾		(6,188)		(142,002)		-		(148,190)
Balance, December 31, 2018	$	24,091	$	-	$	10,598	$	34,689
Balance, December 31, 2019	$	24,091	$	-	$	10,598	$	34,689

(1)As of December 31, 2018, in connection with the sale of the Bluffton, Lakota and Riga ethanol plants and Fleischmann’s Vinegar, the fair value of goodwill was reduced by $6.2 million and $142.0 million, respectively.