Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2024, 2023, and 2022 are as follows:


(in thousands)	Trade		Renewables		Nutrient & Industrial		Total
Balance at January 1, 2022	$	119,867	$	8,789	$	686	$	129,342

Acquisitions	—		—		—		—
Balance at December 31, 2022	119,867		8,789		686		129,342
Disposals (a)	(800)		—		—		(800)
Impairments	—		—		(686)		(686)
Balance at December 31, 2023	119,067		8,789		—		127,856

Acquisitions	—		—		—		—


Balance at December 31, 2024	$	119,067	$	8,789	$	—	$	127,856

(a) Removal of allocated goodwill due to the sale of a grain asset location in Nebraska.

Goodwill for the Trade segment is $119.1 million as of December 31, 2024, which is net of prior years' accumulated impairment losses of $46.4 million. All goodwill for the Nutrient & Industrial segment has been fully impaired, with net accumulated impairment losses $69.6 million.

The Company had goodwill of approximately $127.9 million at December 31, 2024, which includes $77.8 million related to the Company's Grain Storage and Merchandising ("GSM") reporting unit, $41.3 million related to the Company's Food and Specialty Ingredients ("FSI") reporting unit, and $8.8 million related to the Company's Renewables reporting unit.

Goodwill is tested for impairment annually as of October 1, or more frequently if impairment indicators arise. The Company uses a one-step quantitative approach that compares the business enterprise value ("BEV") of each reporting unit with its carrying value. The BEV was computed based on both an income approach (discounted cash flows) and a market approach. The income approach uses a reporting unit's estimated future cash flows, discounted at the weighted-average cost of capital ("WACC") of a hypothetical third-party buyer. The WACC is the rate used to discount each reporting unit’s estimated future cash flows. The WACC is calculated based on the proportionate weighting of the cost of debt and equity. The cost of equity is based on a risk-free interest rate and an equity risk factor, which is derived from public companies similar to the reporting units and which captures the perceived risks and uncertainties associated with the reporting unit's cash flows. The cost of debt is the rate that a prudent investor would require to lend money to the reporting units on an after-tax basis and is estimated based on a market-derived analysis of corporate bond yields. The cost of debt and equity is weighted based on the debt-to-market capitalization ratio of publicly traded companies with similarities to the reporting units being tested. The WACC applied in each reporting unit's last quantitative test ranged from 10.00% to 10.25%, which includes a company specific risk premium range from 2.0% to 2.5%. Differences in the WACC used between reporting units is primarily due to distinct risks and uncertainties regarding the cash flows of the different reporting units.

The market approach estimates fair value by applying cash flow multiples to the reporting unit's operating performance. The multiples are derived from comparable publicly traded companies with similar operating and investment characteristics to the reporting unit. Any excess of the carrying value of the goodwill over the BEV will be recorded as an impairment loss. The calculation of the BEV is based on significant unobservable inputs, such as price trends, customer demand, material costs and discount rates, and are classified as Level 3 in the fair value hierarchy.

There can be no assurance that anticipated financial results will be achieved and the goodwill balances remain susceptible to future impairment charges. The goodwill related to the GSM and FSI reporting units are determined to have the greatest risk of future impairment charges given the difference (approximately 15% and 26%, respectively) between the BEV and carrying value of these reporting units as of the Company's annual impairment test date. Management performed a qualitative test for the Renewables reporting unit and determined that it was highly unlikely that the BEV is less than its carrying amount. If the Company's projected future cash flows were lower, or if the assumed weighted-average cost of capital were higher, the testing performed at year-end may have indicated an impairment of the goodwill related to one or more of the Company's reporting units. Any impairment charges that the Company may take in the future could be material to its Consolidated Statements of Operations and financial condition.

The Company recorded no goodwill impairment charges in the years ended December 31, 2024, and 2022. The Company recorded approximately $0.7 million of goodwill impairment charges in the year ended December 31, 2023.

The Company's other intangible assets are as follows:


				December 31,
				2024						2023
(in thousands)	Useful Life (in years)			Original Cost		Accumulated Amortization		Net Book Value		Original Cost		Accumulated Amortization		Net Book Value
Intangible asset class
Customer lists	3	to	10	$	153,410	$	97,645	$	55,765	$	149,880	$	83,823	$	66,057
Non-compete agreements	1	to	7	22,277		21,756		521		22,240		21,514		726
Supply agreement	10	to	10	8,720		8,720		—		8,720		8,374		346
Technology	10	to	10	13,399		12,898		501		13,400		11,558		1,842
Trademarks and patents	7	to	10	16,049		15,437		612		15,810		14,302		1,508
Software	2	to	10	91,615		80,054		11,561		89,241		74,541		14,700
Other	3	to	5	842		457		385		843		443		400
				$	306,312	$	236,967	$	69,345	$	300,134	$	214,555	$	85,579

Amortization expense for intangible assets was $22.5 million, $24.5 million, and $24.1 million for the years ended December 31, 2024, 2023, and 2022, respectively. Expected future annual amortization expense for the assets above is as follows: 2025 -- $16.3 million; 2026 -- $14.2 million; 2027 -- $13.9 million; 2028 -- $12.0 million; 2029 -- $2.8 million; and thereafter -- $10.2 million.