Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Changes in the carrying amount of goodwill for the year ended December 31, 2021 were as follows:


(in thousands)						December 31, 2021
Beginning balance						$6,925
Foreign currency translation						(545)
Impairment of goodwill						(6,380)
Ending balance						$—

As a result of the operating segment realignment discussed in Note 19 - Segment Information, the composition of the Company's reporting units for the evaluation of goodwill impairment has changed. Historically, the Company's reporting units were identified at the operating segment level, which consisted of AgroFresh Core and AgroFresh Fruit Protection and all of the Company's goodwill was assigned to the AgroFresh Fruit Protection reporting unit. Effective December 31, 2021, the Company concluded that it has one operating segment and one reporting unit, which resulted in the reassignment of its goodwill to its stand-alone reporting unit. Prior to the change, the Company tested goodwill for impairment at the previous reporting unit, which did not result in any impairment charge. Based upon the Company's impairment assessment at the new reporting unit (consolidated AgroFresh), the Company determined the carrying amount of the consolidated entity exceeded its fair value. As a result, the Company recorded $6.4 million in goodwill impairment charges during the year ended December 31, 2021.

The Company’s intangible assets at June 30, 2022 and December 31, 2021 consisted of the following:


	June 30, 2022			December 31, 2021
(in thousands)	Gross Carrying Amount	Accumulated Amortization	Net		Gross Carrying Amount	Accumulated Amortization	Net
Intangible assets with finite lives:
Developed technology	$798,490	($313,437)	$485,053		$798,669	($293,920)	$504,749
Customer relationships	18,911	(7,306)	11,605		19,778	(6,948)	12,830
Software	11,435	(10,328)	1,107		10,992	(10,235)	757
Trade name	3,368	(1,347)	2,021		3,635	(727)	2,908
Other	100	(100)	—		100	(92)	8
Total intangible assets with finite lives	832,304	(332,518)	499,786		833,174	(311,922)	521,252
Intangible assets with indefinite lives:
Trade name	23,400	—	23,400		23,400	—	23,400
Service provider network	2,000	—	2,000		2,000	—	2,000
Total intangible assets with indefinite lives	25,400	—	25,400		25,400	—	25,400
Total intangible assets	$857,704	($332,518)	$525,186		$858,574	($311,922)	$546,652

At June 30, 2022, the weighted-average amortization periods remaining for developed technology, customer relationships, software, trade name and other was 13.0, 10.8, 2.3, 1.5 and 0.0 years, respectively, and the weighted-average amortization periods remaining for these finite-lived intangible assets was 12.9 years.

Estimated annual amortization expense for finite-lived intangible assets subsequent to June 30, 2022 is as follows:


(in thousands)			Amount
2022 (remaining)			$21,243
2023			42,473
2024			40,959
2025			40,629
2026			40,372
Thereafter			314,110
Total			$499,786

Amortization expense for intangible assets was $10.7 million and $10.5 million for the three months ended June 30, 2022 and 2021, respectively and $21.4 million and $21.3 million for the six months ended June 30, 2022 and 2021, respectively.