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Goodwill and Other Intangible Assets | 12 Months Ended
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Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill by reportable segment for the years ended December 31, 2023, 2022, and 2021 are as follows:
(in thousands) |  | Trade |  | Renewables |  | Nutrient & Industrial |  | Total
Balance at January 1, 2021 |  | $ | 122,067 |  |  | $ | 8,789 |  |  | $ | 686 |  |  | $ | 131,542 |
Disposals (a) |  | (2,200) |  |  | — |  |  | — |  |  | (2,200) |
Balance at December 31, 2021 |  | 119,867 |  |  | 8,789 |  |  | 686 |  |  | 129,342 |
Acquisitions |  | — |  |  | — |  |  | — |  |  | — |
Balance at December 31, 2022 |  | 119,867 |  |  | 8,789 |  |  | 686 |  |  | 129,342 |
Disposals (b) |  | (800) |  |  | — |  |  | — |  |  | (800) |
Impairments |  | — |  |  | — |  |  | (686) |  |  | (686) |
Balance at December 31, 2023 |  | $ | 119,067 |  |  | $ | 8,789 |  |  | $ | — |  |  | $ | 127,856 |
(a) Removal of allocated goodwill due to the sale of a grain asset location in Illinois. (b) 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, 2023, which is net of prior years' accumulated impairment losses of $46.4 million. All goodwill for the Nutrient & Industrial segment has been fully impaired as of December 31, 2023, with net accumulated impairment losses $69.6 million. The Company had goodwill of approximately $127.9 million at December 31, 2023, which includes approximately $77.8 million related to the Company's Grain Storage and Merchandising ("GSM") reporting unit, approximately $41.3 million related to the Company's Food and Specialty Ingredients ("FSI") reporting unit, and approximately $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 10.75% to 11.00%, 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 18% and 19%, 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 approximately $0.7 million of goodwill impairment charges in the year ended December 31, 2023, related to the Engineered Granules reporting unit within the Nutrient & Industrial segment. No goodwill impairment charges were incurred in the years ended December 31, 2022 or 2021 as a result of our annual impairment testing. The Company's other intangible assets are as follows:
|  |  |  |  | December 31,
|  |  |  |  | 2023 |  | 2022
(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 |  | $ | 149,880 |  |  | $ | 83,823 |  |  | $ | 66,057 |  |  | $ | 143,081 |  |  | $ | 70,539 |  |  | $ | 72,542 |
Non-compete agreements | 1 | to | 7 |  | 22,240 |  |  | 21,514 |  |  | 726 |  |  | 22,242 |  |  | 21,311 |  |  | 931 |
Supply agreement | 10 | to | 10 |  | 8,720 |  |  | 8,374 |  |  | 346 |  |  | 8,720 |  |  | 7,912 |  |  | 808 |
Technology | 10 | to | 10 |  | 13,400 |  |  | 11,558 |  |  | 1,842 |  |  | 13,400 |  |  | 10,218 |  |  | 3,182 |
Trademarks and patents | 7 | to | 10 |  | 15,810 |  |  | 14,302 |  |  | 1,508 |  |  | 15,810 |  |  | 13,165 |  |  | 2,645 |
Software | 2 | to | 10 |  | 89,241 |  |  | 74,541 |  |  | 14,700 |  |  | 88,631 |  |  | 68,392 |  |  | 20,239 |
Other | 3 | to | 5 |  | 843 |  |  | 443 |  |  | 400 |  |  | 998 |  |  | 438 |  |  | 560 |
|  |  |  |  | $ | 300,134 |  |  | $ | 214,555 |  |  | $ | 85,579 |  |  | $ | 292,882 |  |  | $ | 191,975 |  |  | $ | 100,907 |
Amortization expense for intangible assets was $24.5 million, $24.1 million and $30.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. Expected future annual amortization expense for the assets above is as follows: 2024 -- $21.8 million; 2025 -- $15.5 million; 2026 -- $13.3 million; 2027 -- $13.2 million; 2028 -- $11.3 million; and thereafter -- $10.6 million.

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