NEWMARKET CORP
For the period ended Jun 30, 2024. Filed Jul 30, 2024.
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A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.
Jun 30, 2024 · Filed Jul 30, 2024
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Intangibles (Net of Amortization) and Goodwill
- Intangibles (Net of Amortization) and Goodwill
The net carrying amount of intangibles and goodwill was $763 million at June 30, 2024 and $125 million at December 31, 2023. The gross carrying amount and accumulated amortization of each type of intangible asset and goodwill are presented in the table below.
| June 30, 2024 · December 31, 2023 | |||||
|---|---|---|---|---|---|
| (in thousands) · GrossCarryingAmount · AccumulatedAmortization · GrossCarryingAmount · AccumulatedAmortization | |||||
| Amortizing intangible assets | |||||
| Formulas and technology | $60,000 | $3,470 | $6,200 | $6,200 | |
| Contract | 0 | 0 | 2,000 | 2,000 | |
| Customer bases | 280,440 | 11,904 | 5,440 | 4,539 | |
| Trademarks and trade names | 30,000 | 925 | 0 | 0 | |
| Water rights | 29,392 | 0 | |||
| Goodwill | 379,934 | 123,741 | |||
| $779,766 | $16,299 | $137,381 | $12,739 | ||
Of the total intangibles and goodwill, $124 million is attributable to the petroleum additives segment and $639 million is attributable to the specialty materials segment. The change in the gross carrying amount between December 31, 2023 and June 30, 2024 is due to the identifiable intangible assets and goodwill from the acquisition of AMPAC, as well as the write-off of fully amortized identifiable intangible assets and the foreign currency fluctuation on goodwill in the petroleum additives segment. See Note 2 for further information on the intangibles and goodwill obtained with the AMPAC acquisition. There isno accumulated goodwill impairment.
Amortization expense was (in thousands):
| Second quarter ended June 30, 2024 | $6,388 |
|---|---|
| Six months ended June 30, 2024 | 11,760 |
| Second quarter ended June 30, 2023 | 355 |
| Six months ended June 30, 2023 | 711 |
Estimated amortization expense for the remainder of 2024, as well as estimated annual amortization expense related to our intangible assets for the next five years, is expected to be (in thousands):
| 2024 | $12,694 |
| 2025 | 25,404 |
| 2026 | 25,404 |
| 2027 | 25,404 |
| 2028 | 25,355 |
| 2029 | 25,214 |
We amortize the formulas and technology over 8 years, the customer bases over 17.5 to 20 years, and the trademarks and trade names over 15 years.
The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.