Perimeter Solutions SA
For the period ended Sep 30, 2024. Filed Nov 12, 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.
Sep 30, 2024 · Filed Nov 12, 2024
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4. Goodwill and Other Intangible Assets
- GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill by reportable segment are as follows (in thousands):
| Fire Safety | Specialty Products | Total | |
|---|---|---|---|
| Balance, December 31, 2023 | $863,889 | $172,390 | $1,036,279 |
| Foreign currency translation | (393) | 595 | 202 |
| Balance, September 30, 2024 | $863,496 | $172,985 | $1,036,481 |
Intangible assets and related accumulated amortization as of September 30, 2024 and December 31, 2023 are as follows (in thousands):
| September 30, 2024 | ||||||
|---|---|---|---|---|---|---|
| EstimatedUseful Life(in years) | Gross Value | Impairment | ForeignCurrencyTranslation | AccumulatedAmortization | Net Book Value | |
| Definite Lived Intangible Assets: | ||||||
| Customer lists | 20 | $761,000 | $— | $(5,675) | $(109,189) | $646,136 |
| Technology and patents | 20 | 250,000 | (40,738) | (2,086) | (35,783) | 171,393 |
| Tradenames | 20 | 101,000 | — | (747) | (14,493) | 85,760 |
| Balance, September 30, 2024 | $1,112,000 | $(40,738) | $(8,508) | $(159,465) | $903,289 | |
| December 31, 2023 | ||||||
|---|---|---|---|---|---|---|
| EstimatedUseful Life(in years) | Gross Value | Impairment | ForeignCurrencyTranslation | AccumulatedAmortization | Net Book Value | |
| Definite Lived Intangible Assets: | ||||||
| Customer lists | 20 | $761,000 | $— | $(5,294) | $(80,920) | $674,786 |
| Technology and patents | 20 | 250,000 | (40,738) | (2,096) | (26,513) | 180,653 |
| Tradenames | 20 | 101,000 | — | (691) | (10,741) | 89,568 |
| Balance, December 31, 2023 | $1,112,000 | $(40,738) | $(8,081) | $(118,174) | $945,007 | |
During the year ended December 31, 2023, due to a downward revision in the revenue forecast related to a contingent earn-out eligible fire retardant product acquired by the Company in May 2020 during the purchase of LaderaTech, Inc. (“LaderaTech”), the Company determined that the $40.7 million in carrying value of the technology underlying the contingent earn-out eligible fire retardant product was no longer recoverable. As a result, during the year ended December 31, 2023, the Company recorded an impairment of $40.7 million.
Amortization expense for definite-lived intangible assets was $13.8 millionfor the three months ended September 30, 2024, and 2023, and$41.3 million for the nine months ended September 30, 2024 and 2023.
Estimated annual amortization expense of intangible assets for the next five years ended December 31 and thereafter is as follows (in thousands):
| Amount | |
|---|---|
| 2024 remaining | $13,338 |
| 2025 | 53,350 |
| 2026 | 53,350 |
| 2027 | 53,350 |
| 2028 | 53,350 |
| Thereafter | 676,551 |
| Total | $903,289 |
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