Cover
Cover - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Jan. 26, 2023 | |
Document Information [Line Items] | ||
Document type | 10-K | |
Amendment flag | false | |
Document Annual Report | true | |
Document period end date | Dec. 31, 2022 | |
Current Fiscal Year End Date | --12-31 | |
Document Transition Report | false | |
Entity File Number | 001-38912 | |
Entity registrant name | Avantor, Inc. | |
Entity well-known seasoned issuer | Yes | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 82-2758923 | |
Entity Address, Address Line One | Radnor Corporate Center, Building One, Suite 200 | |
Entity Address, Address Line Two | 100 Matsonford Road | |
Entity Address, City or Town | Radnor | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 19087 | |
Entity central index key | 0001722482 | |
Entity current reporting status | Yes | |
Entity interactive data current | Yes | |
Entity filer category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Document fiscal year focus | 2022 | |
Document fiscal period focus | FY | |
Local Phone Number | 386-1700 | |
City Area Code | 610 | |
Entity voluntary filers | No | |
Entity public float | $ 20,959,358,658 | |
Entity common stock, shares outstanding | 674,443,506 | |
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of our definitive proxy statement for our 2023 annual meeting of stockholders will be filed with the SEC on or before 120 days after our 2022 fiscal year-end and are incorporated by reference into Part III of this report. | |
Title of 12(b) Security | Common stock, $0.01 par value | |
Trading Symbol | AVTR | |
Security Exchange Name | NYSE | |
ICFR Auditor Attestation Flag | true |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | Deloitte & Touche LLP |
Auditor Firm ID | 34 |
Auditor Location | Philadelphia, Pennsylvania |
Consolidated balance sheets
Consolidated balance sheets - USD ($) shares in Millions, $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and cash equivalents | $ 372.9 | $ 301.7 |
Accounts receivable, net of allowances of $28.2 and $26.4 | 1,218.4 | 1,222.1 |
Inventory | 913.5 | 872 |
Other current assets | 153.1 | 81.4 |
Total current assets | 2,657.9 | 2,477.2 |
Property, plant and equipment, net of accumulated depreciation of $518.4 and $445.2 | 727 | 705.5 |
Other intangible assets, net (see note 11) | 4,133.3 | 5,140.3 |
Goodwill | 5,652.6 | 5,341.1 |
Other assets | 293.5 | 233.1 |
Total assets | 13,464.3 | 13,897.2 |
Liabilities and stockholders’ equity | ||
Current portion of debt | 364.2 | 45.2 |
Accounts payable | 758.2 | 755.1 |
Employee-related liabilities | 122.4 | 199.7 |
Accrued interest | 49.9 | 49.8 |
Other current liabilities | 364.1 | 401 |
Total current liabilities | 1,658.8 | 1,450.8 |
Debt, net of current portion | 5,923.3 | 6,978 |
Deferred income tax liabilities | 731.4 | 913 |
Other liabilities | 295.4 | 358.4 |
Total liabilities | 8,608.9 | 9,700.2 |
Commitments and contingencies (see note 13) | ||
MCPS including paid-in capital, 0.0 and 20.7 shares outstanding | 0 | 1,003.7 |
Common stock including paid-in capital, 674.3 and 609.7 shares outstanding | 3,785.3 | 2,752.6 |
Accumulated earnings | 1,170.4 | 483.9 |
Accumulated other comprehensive loss | (100.3) | (43.2) |
Total stockholders’ equity | 4,855.4 | 4,197 |
Total liabilities and stockholders’ equity | $ 13,464.3 | $ 13,897.2 |
Preferred equity, shares outstanding | 0 | 20.7 |
Consolidated balance sheets (Pa
Consolidated balance sheets (Parenthetical) - USD ($) shares in Millions, $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Allowances on accounts receivable | $ 28.2 | $ 26.4 |
Accumulated Depreciation, Depletion and Amortization, Property, Plant, and Equipment | $ 518.4 | $ 445.2 |
Preferred equity, shares outstanding | 0 | 20.7 |
Common stock, shares, outstanding | 674.3 | 609.7 |
Consolidated statements of oper
Consolidated statements of operations - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statements of operations | |||
Net sales | $ 7,512.4 | $ 7,386.1 | $ 6,393.6 |
Cost of sales | 4,909.6 | 4,883.4 | 4,313.1 |
Gross profit | 2,602.8 | 2,502.7 | 2,080.5 |
Selling, general and administrative expenses | 1,472.6 | 1,530.5 | 1,373.7 |
Operating income | 1,130.2 | 972.2 | 706.8 |
Interest expense | (265.8) | (217.4) | (307.6) |
Loss on extinguishment of debt | (12.5) | (12.4) | (346.8) |
Other (expense) income, net | (0.8) | 10.6 | 9.9 |
Income before income taxes | 851.1 | 753 | 62.3 |
Income tax (expense) benefit | (164.6) | (180.4) | 54.3 |
Net income | 686.5 | 572.6 | 116.6 |
Accumulation of yield on preferred stock | (24.2) | (64.6) | (64.6) |
Net income available to common stockholders | $ 662.3 | $ 508 | $ 52 |
Earnings per share: | |||
Basic | $ 1.02 | $ 0.86 | $ 0.09 |
Diluted | $ 1.01 | $ 0.85 | $ 0.09 |
Weighted average shares outstanding: | |||
Basic | 650.9 | 590.5 | 576.3 |
Diluted | 679.4 | 599.6 | 583.4 |
Consolidated statements of comp
Consolidated statements of comprehensive income or loss - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 686.5 | $ 572.6 | $ 116.6 |
Other comprehensive (loss) income: | |||
Foreign currency translation — unrealized (loss) gain | (102) | (62.8) | 106.4 |
Derivative instruments: | |||
Unrealized gain (loss) | 33.1 | (1.6) | 1 |
Reclassification of (gain) loss into earnings | (7.4) | 3.5 | (1.7) |
Activity related to defined benefit plans | 46.9 | 8 | (7.7) |
Other comprehensive (loss) income before income taxes | (29.4) | (52.9) | 98 |
Income tax effect | (27.7) | (12) | 9.6 |
Other comprehensive (loss) income | (57.1) | (64.9) | 107.6 |
Comprehensive income | $ 629.4 | $ 507.7 | $ 224.2 |
Consolidated statements of stoc
Consolidated statements of stockholders' equity or deficit - shares - shares shares in Millions | MCPS including paid-in capital | Common stock including paid-in capital |
Beginning balance at Dec. 31, 2019 | 20.7 | 572.8 |
Exercise of stock options other than common stock transactions (in shares) | 7.3 | |
Ending balance at Dec. 31, 2020 | 20.7 | 580.1 |
Issuance of stock, net of issuance costs (in shares) | 23.8 | |
Exercise of stock options other than common stock transactions (in shares) | 5.8 | |
Ending balance at Dec. 31, 2021 | 20.7 | 609.7 |
Exercise of stock options other than common stock transactions (in shares) | 1.7 | |
Conversion of junior convertible preferred stock (in shares) | (20.7) | 62.9 |
Ending balance at Dec. 31, 2022 | 0 | 674.3 |
Consolidated statements of st_2
Consolidated statements of stockholders' equity or deficit - amounts - USD ($) $ in Millions | Total | Cumulative effect adjustment | MCPS including paid-in capital | Common stock including paid-in capital | Accumulated (deficit) earnings | Accumulated (deficit) earnings Cumulative effect adjustment | AOCI |
Beginning balance at Dec. 31, 2019 | $ 2,462.2 | $ 1,003.7 | $ 1,748.1 | $ (203.7) | $ (85.9) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 224.2 | 116.6 | 107.6 | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 42.2 | 42.2 | |||||
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings | 64.6 | (64.6) | |||||
Exercise of stock options | 11.9 | 11.9 | |||||
Ending balance at Dec. 31, 2020 | 2,674.3 | $ (1.6) | 1,003.7 | 1,737.6 | (88.7) | $ (1.6) | 21.7 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Comprehensive income (loss) | 507.7 | 572.6 | (64.9) | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 47.7 | 47.7 | |||||
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings | (64.6) | (64.6) | |||||
Exercise of stock options | 64.9 | 64.9 | |||||
Stock Issued During Period, Value, New Issues | 967 | 967 | |||||
Ending balance at Dec. 31, 2021 | 4,197 | 1,003.7 | 2,752.6 | 483.9 | (43.2) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Conversion of junior convertible preferred stock | (1,003.7) | 1,003.7 | |||||
Comprehensive income (loss) | 629.4 | 686.5 | (57.1) | ||||
APIC, Share-based Payment Arrangement, Increase for Cost Recognition | 49.1 | 49.1 | |||||
Adjustments to Additional Paid in Capital, Dividends in Excess of Retained Earnings | (24.2) | (24.2) | |||||
Exercise of stock options | 4.1 | 4.1 | |||||
Ending balance at Dec. 31, 2022 | $ 4,855.4 | $ 0 | $ 3,785.3 | $ 1,170.4 | $ (100.3) |
Consolidated statements of cash
Consolidated statements of cash flows - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | |||
Net income | $ 686.5 | $ 572.6 | $ 116.6 |
Reconciling adjustments: | |||
Depreciation and amortization | 405.5 | 379.2 | 395.4 |
Stock-based compensation expense | 45.8 | 50.7 | 44.1 |
Provision for accounts receivable and inventory | 65 | 44.9 | 69.5 |
Deferred income tax benefit | (69.1) | (17.7) | (87.5) |
Amortization of deferred financing costs | 15.7 | 16.3 | 23.4 |
Loss on extinguishment of debt | 12.5 | 12.4 | 346.8 |
Foreign currency remeasurement loss (gain) | 10 | 6.7 | (0.9) |
Changes in assets and liabilities: | |||
Accounts receivable | (45.2) | (111.8) | (102.4) |
Inventory | (112.5) | (129.8) | (69.7) |
Accounts payable | 15.6 | 64.9 | 110.6 |
Accrued interest | 0.1 | 5.3 | (29.7) |
Other assets and liabilities | (179.3) | 56.9 | 110.7 |
Other, net | (7) | 3 | 2.9 |
Net cash provided by operating activities | 843.6 | 953.6 | 929.8 |
Cash flows from investing activities: | |||
Capital expenditures | (133.4) | (111.1) | (61.6) |
Cash paid for acquisitions, net of cash acquired | (20.2) | (4,014.1) | 0 |
Other | 1.5 | 3.5 | 2.5 |
Net cash used in investing activities | (109.6) | (4,121.7) | (59.1) |
Cash flows from financing activities: | |||
Debt borrowings | 327.2 | 2,834.6 | 3,938.8 |
Debt repayments | (947) | (533.9) | (4,361.5) |
Payments of debt refinancing fees and premiums | (0.6) | (40.6) | (315.8) |
Proceeds from issuance of stock, net of issuance costs | 0 | 967 | 0 |
Payments of dividends on preferred stock | (32.4) | (64.6) | (64.6) |
Proceeds received from exercise of stock options | 17.3 | 82.5 | 20.2 |
Proceeds received from exercise of stock options, net of shares repurchased to satisfy employee tax obligations for vested stock-based awards | (13.2) | (25.8) | 0 |
Net cash (used in) provided by financing activities | (648.7) | 3,219.2 | (782.9) |
Effect of currency rate changes on cash | (15.5) | (13.2) | 12.1 |
Net change in cash, cash equivalents and restricted cash | 69.8 | 37.9 | 99.9 |
Cash, cash equivalents and restricted cash, beginning of year | 327.1 | 289.2 | 189.3 |
Cash, cash equivalents and restricted cash, end of year | 396.9 | $ 327.1 | $ 289.2 |
Proceeds from Hedge, Investing Activities | $ 42.5 |
Nature of operations and presen
Nature of operations and presentation of financial statements | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Nature of operations and presentation of financial statements | 1. Nature of operations and presentation of financial statements We are a global manufacturer and distributor that provides products and services to customers in the biopharmaceutical, healthcare, education & government and advanced technologies & applied materials industries. Basis of presentation The accompanying financial statements have been prepared in accordance with the rules and regulations of the SEC for annual reports and GAAP. The financial statements include the accounts of Avantor, Inc., its consolidated subsidiaries, and those business entities in which we maintain a controlling interest. The financial statements reflect the adoption of a new credit losses standard at January 1, 2020. Information about this accounting standard is disclosed in note 3. Conversion of MCPS into Common Stock In May of 2022, all outstanding shares of 6.250% Series A MCPS, par value $0.01 per share, automatically converted into 62.9 million shares of our common stock, in accordance with their terms. The conversion rate for each share of MCPS was 3.0395 shares of our common stock, subject to receipt of cash in lieu of fractional shares, and was determined based on the price of our common stock on the date of conversion. No outstanding shares of the MCPS remained following the mandatory conversion. Principles of consolidation All intercompany balances and transactions have been eliminated from the financial statements. Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported throughout the financial statements. Actual results could differ from those estimates. |
Summary of significant accounti
Summary of significant accounting policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of significant accounting policies | 2. Summary of significant accounting policies Earnings per share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is computed based on the weighted average number of common shares outstanding increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued and reduced by the number of shares we could have repurchased with the proceeds from the issuance of the potentially dilutive shares. Variable conversion ratios are determined as of period end. Preferred dividends are added back to net income available to common stockholders provided that the preferred securities are not anti-dilutive to the calculation. Segment reporting We report three geographic segments based on customer location: the Americas, Europe and AMEA. Our operating segments are the same as our reportable segments. None of our customers contributed more than 10% to our net sales, and we disclose net sales for the following product lines: proprietary materials & consumables, third party materials & consumables, services & specialty procurement and equipment & instrumentation. We disclose geographic data for our two largest countries, the United States and Germany, as a percentage of consolidated net sales. No other countries were individually material. We also disclose certain regional data because of differences in geopolitical and / or competitive conditions. We disclose property and equipment by geographic area because many of these assets cannot be readily moved and are illiquid, subjecting them to geographic risk. None of our other long-lived assets are subject to significant geopolitical risk. We do not manage total assets on a segment basis. Segment information about interest expense, income tax expense or benefit and other significant non-cash items are not disclosed because they are not included in the segment profitability measurement nor are they otherwise provided to our chief operating decision maker on a regular basis. Cash and cash equivalents Cash equivalents are comprised of highly-liquid investments with original maturities of three months or less. Bank overdrafts are classified as current liabilities, and changes to bank overdrafts are presented as a financing activity on our consolidated statements of cash flows. Accounts receivable and allowance for current expected credit losses Substantially all of our accounts receivable are trade accounts that are recorded at the invoiced amount and generally do not bear interest. Accounts receivable are presented net of an allowance for current expected credit losses. We consider many factors in estimating our allowance including the age of our receivables, historical collections experience, customer types, creditworthiness and economic trends. Account balances are written off against the allowance when we determine it is probable that the receivable will not be recovered. Inventory Inventory consists of merchandise inventory related to our distribution business and finished goods, raw materials and work in process related to our manufacturing business. Goods are removed from inventory as follows: • Merchandise inventory purchased by certain U.S. subsidiaries using the last-in, first-out method. • All other merchandise inventory using the first-in, first-out method. • Manufactured inventories using an average cost method. Inventory is valued at the lower of cost or net realizable value. Cost for manufactured goods is determined using standard costing methods to estimate raw materials, labor and overhead consumed. Variances from actual cost are recorded to inventory at period-end. Cost for other inventory is based on amounts invoiced by suppliers plus freight. If net realizable value is less than carrying value, we reduce the carrying amount to net realizable value and record a loss in cost of sales. Property, plant and equipment Property, plant and equipment are stated at cost. Depreciation is recognized using the straight-line method over estimated useful lives of three three three Software development costs are capitalized as property, plant and equipment once the preliminary project stage is completed and management commits to funding the project if it is probable that the project will be completed for its intended use. Preliminary project planning and training costs related to software are expensed as incurred. Impairment of long-lived assets Long-lived assets include property, plant and equipment, finite-lived intangible assets and certain other assets. For impairment testing purposes, long-lived assets may be grouped with working capital and other types of assets or liabilities if they generate cash flows on a combined basis. We evaluate long-lived assets or asset groups for impairment whenever events or changes in circumstances indicate a potential inability to recover their carrying amounts. Impairment is determined by comparing their carrying value to their estimated undiscounted future cash flows. If long-lived assets or asset groups are impaired, the loss is measured as the amount by which their carrying values exceed their fair value. Goodwill and other intangible assets Goodwill represents the excess of the price of an acquired business over the aggregate fair value of its net assets. Other intangible assets consist of both finite-lived and indefinite-lived intangible assets. Goodwill and other indefinite-lived intangible assets are tested annually for impairment on October 1 of each year and whenever an impairment indicator arises. Goodwill impairment testing is performed at the reporting unit level. Our reporting units are Americas, NuSil, Europe and AMEA. Our finite-lived intangible assets are tested for impairment whenever an impairment indicator arises. Examples of impairment indicators include unexpected adverse business conditions, economic factors, unanticipated technological changes or competitive activities, loss of key personnel and acts or anticipated acts by governments and courts. The impairment analysis for goodwill and indefinite-lived intangible assets consists of an optional qualitative assessment potentially followed by a quantitative analysis. If we determine that the carrying value of a reporting unit or an indefinite-lived intangible asset exceeds its fair value, an impairment charge is recorded for the excess. Indefinite-lived intangible assets are not amortized. Annually, we evaluate whether these assets continue to have indefinite lives, considering whether they have any legal, regulatory, contractual, competitive or economic limitations and whether they are expected to contribute to the generation of cash flows indefinitely. Finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis, with customer relationships amortized over lives of ten ten five Restructuring and severance charges Restructuring plans are designed to improve gross margins and reduce operating costs over time. We typically incur upfront charges to implement those plans related to employee severance, facility closure and other actions: • Employee severance and related — Employee severance programs can be voluntary or involuntary. Voluntary severances are recorded at their reasonably estimated amount when associates accept severance offers. Involuntary severances covered by plan or statute are recorded at estimated amounts when probable and reasonably estimable. Significant judgment is required to determine probability and whether the amount can be reasonably estimated. Involuntary severances requiring continuing service are measured at fair value as of the termination date and recognized on a straight-line basis over the service period. Other involuntary severances are recognized at fair value on the date we notify associates of the severance plan, provided approval is obtained by the appropriate level of management. • Facility closure — On the date we cease using a facility, facility lease assets are tested for impairment in the same way as other long-lived assets. The remaining lease expense is recognized between the period that we commit to cease use of a facility and the date we exit. • Other — Other charges may be incurred to write down assets, divest businesses or for other reasons and are accounted for under applicable GAAP as described elsewhere in these policies. Restructuring and severance charges are classified as SG&A expenses. Accrued restructuring and severance charges are classified as employee-related or current liabilities if we anticipate settlement within one year, otherwise they are included in other liabilities. Contingencies Our business exposes us to various contingencies including compliance with environmental laws and regulations, legal exposures related to the manufacture and sale of products and other matters. Loss contingencies are reflected in the financial statements based on our assessments of their expected outcome or resolution: • They are recognized as liabilities on our balance sheet if the potential loss is probable and the amount can be reasonably estimated. • They are disclosed if the potential loss is material and considered at least reasonably possible. Significant judgment is required to determine probability and whether the amount can be reasonably estimated. Due to uncertainties related to these matters, accruals are based only on the information available at the time. As additional information becomes available, we reassess potential liabilities and may revise our previous estimates. Debt Borrowings under lines of credit are stated at their face amount. Borrowings under term debt and through the issuance of notes are stated at their face amounts net of unamortized deferred financing costs, including any original issue discounts or premiums. The accounting for financing costs depends on whether debt is newly issued, extinguished or modified. That determination is made on an individual lender basis when the lenders are part of a syndication. When new debt is issued, financing costs and discounts are deferred and recognized as interest expense through maturity of the debt. When debt is extinguished, unamortized deferred financing costs and discounts are written off and presented as a loss on extinguishment of debt. When debt is modified, new financing costs and prior unamortized deferred financing costs may be either (i) immediately recognized as interest expense, other expense, or SG&A expense or (ii) deferred and recognized as interest expense through maturity of the modified debt, depending on the type of cost and whether the modification was substantial or insubstantial. Borrowings and repayments under lines of credit are short-term in nature and presented on the statement of cash flows on a net basis. Equity Stockholders’ equity or deficit comprises nonredeemable ownership interests in MCPS and common stock. Our accounting policies for these instruments are as follows: • MCPS is classified as permanent equity and initially recorded at fair value, net of issuance costs. Accrued but unpaid MCPS dividends are classified as other current liabilities with a corresponding reduction to common stock including paid-in capital. • Common stock is presented at par value plus additional paid-in amounts, net of issuance costs. Distributions are accounted for as reductions to common stock including paid-in capital and are classified as financing activities on the statement of cash flows. • Upon issuance, paid-in capital is allocated among host stock instruments on a relative fair value basis. Costs directly associated with new equity issuances are recorded as other current assets until the issuances are completed or abandoned. If the issuance is completed, the costs are reclassified to stockholders’ equity and presented as a reduction of proceeds received. If the issuance is abandoned, the costs are reclassified to SG&A expenses. Costs associated with secondary equity offerings under a registration rights agreement are recorded as SG&A expenses. Disclosures about certain classes of stock are provided in the footnotes and not stated separately on the balance sheet or statement of stockholders’ equity when those presentations are not deemed to be material. Revenue recognition We recognize revenue by applying a five-step process: (i) identify the contract with a customer, (ii) identify the performance obligation in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue as the performance obligations are satisfied by transferring control of the performance obligation through delivery of a promised product or service to a customer. Control of a performance obligation may transfer to the customer either at a point in time or over time depending on an evaluation of the specific facts and circumstances for each contract, including the terms and conditions of the contract as agreed with the customer, as well as the nature of the products or services to be provided. The substantial majority of our net sales are recognized at a point in time based upon the delivery of products to customers pursuant to purchase orders. We recognize service revenues and sales of certain of our custom-manufactured products over time as control passes to the customer concurrent with our performance. We are able to fulfill most purchase orders rapidly, and service and custom-manufacturing cycles are short. As a result, we do not record material contract assets or liabilities, nor do we have material unfulfilled performance obligations. We have elected to use the practical expedient not to adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Some customer contracts include variable consideration, such as rebates and prebates, some of which depend upon our customers meeting specified performance criteria, such as a purchasing level over a period of time. We use judgment to estimate the value of these pricing arrangements at each reporting date and record contract assets or liabilities to the extent that estimated values are recognized at a different time than the revenue for the related products. When estimating variable consideration, we also apply judgment when considering the probability of whether a reversal of revenue could occur and only recognize revenue subject to this constraint. The only significant costs we incur to obtain contracts are related to sales commissions. These commissions are primarily based on purchase order amounts, not recoverable and not applicable to periods greater than one year. We elected to apply the practical expedient to expense these costs as incurred as if the amortization period of the asset that would have otherwise been recognized is one year or less. Performance obligations following the delivery of products, such as rights of return and warranties, are not material. No other types of revenue arrangements were material to our consolidated financial statements. Classification of expenses — cost of sales Cost of sales includes the cost of the product, depreciation of production assets, supplier rebates, shipping and receiving charges and inventory adjustments. For manufactured products, the cost of the product includes direct and indirect manufacturing costs, plant administrative expenses and the cost of raw materials consumed in the manufacturing process. Classification of expenses — selling, general and administrative Selling, general and administrative expenses include personnel and facility costs, amortization of intangible assets, depreciation of non-production assets, research and development costs, advertising expense, promotional charges and other charges related to our global operations. Research and development expenses were not material for the periods presented. Employee benefit plans Some of our employees participate in defined benefit plans that we sponsor. We present these plans as follows due to their differing geographies, characteristics and actuarial assumptions: • U.S. plans — Two plans based in the United States, one of which we acquired from VWR in 2017. Another plan acquired from VWR was merged with ours in 2018. The U.S. plans are closed to participants who joined the Company after 2018, and annual accruals of future pension benefits for participating employees are not material to our financial statements. • Non-U.S. plans — Eight plans for our employees around the world that we acquired from VWR in 2017, most of which continue to accrue future pension benefits. • Medical plan — A post-retirement medical plan for certain employees in the United States. The medical plan is closed to new employees, and annual accruals of future pension benefits for participating employees are not material to our financial statements. We sponsor a number of other defined benefit plans around the world that are not material individually or in the aggregate and therefore are not included in our disclosures. Defined contribution and other employee benefit plans are also not material. The cost of our defined benefit plans is incurred systematically over expected employee service periods. We use actuarial methods and assumptions to determine expense each period and the value of projected benefit obligations. Actuarial changes in the projected value of defined benefit obligations are deferred to AOCI and recognized in earnings systematically over future periods. The portion of cost attributable to continuing employee service is included in SG&A expenses. The rest of the cost is included in other income or expense, net. Stock-based compensation expense Some of our management and directors are compensated with stock-based awards. Stock-based compensation expense is included in SG&A expenses on the statement of operations. Stock options and RSUs We measure the expense of stock options and RSUs based on their grant-date fair values. These awards typically vest with continuing service, so expense is recognized on a straight-line basis from the date of grant through the end of the requisite service period. When awards are contingent upon the achievement of a performance condition, we record expense over the life of the awards in accordance with the probability of achievement. We measure the expense of awards with a market condition based on the grant-date fair value, which includes the probability of achieving the market condition. We recognize forfeitures of unvested awards as they occur by reversing any expense previously recorded in the period of forfeiture. We issue new shares of common stock upon exercise or vesting of awards. The grant-date fair value of stock options is measured using the Black-Scholes pricing model using assumptions based on the terms of each stock option agreement, the expected behavior of grant recipients and peer company data. We have limited historical data about our own awards upon which to base our assumptions. Expected volatility is calculated based on the observed equity volatility for a peer group over a period of time equal to the expected life of the stock options. The risk-free interest rate is based on U.S. Treasury observed market rates continuously compounded over the duration of the expected life. The expected life of stock options is estimated as the midpoint of the weighted average vesting period and the contractual term. The grant-date fair value for RSUs in which the vesting condition is based only on continuing service is measured as the quoted closing price of our common stock on the grant date. For awards with market conditions, we measure the grant-date fair value using a Monte Carlo model. The grant-date fair value of awards with performance conditions is the quoted closing price of our common stock on the grant date, adjusted for the probability of achievement. Award modifications When stock-based compensation arrangements are modified, we treat the modification as an exchange of the original award for a new award and immediately recognize expense for the incremental value of the new award. The incremental value is measured as the excess of the fair value of new awards over the fair value of the original awards, each based on circumstances and assumptions as of the modification date. Fair value is measured using the same methods previously described. Income taxes Our worldwide income is subject to the income tax regulations of many governments. Income tax expense is calculated using an estimated global rate with recognition of deferred tax assets and liabilities for expected temporary differences between taxable and reported income. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income when those temporary differences are expected to reverse. We record a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. Income tax regulations change from time to time. The effect of a change in tax law on deferred tax assets and liabilities is recognized as a cumulative adjustment to income tax expense or benefit in the period of enactment. The effect of a change in tax law on the income tax expense or benefit itself is recognized prospectively for the applicable tax years. Income tax regulations can be complex, requiring us to interpret tax law and take positions. Upon audit, tax authorities may challenge our positions. We regularly assess the outcome of potential examinations and only recognize positions that are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is more likely than not of being realized. Changes in recognition or measurement are reflected in the period in which a change in judgment occurs, as a result of information that arises or when a tax position is effectively settled. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense in our consolidated financial statements. Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a measurement date. We classify fair value measurements based on the lowest of the following levels that is significant to the measurement: • Level 1 — Quoted prices in active markets for identical assets or liabilities • Level 2 — Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability • Level 3 — Inputs that are unobservable for the asset or liability based on our evaluation of the assumptions market participants would use in pricing the asset or liability We exercise considerable judgment when estimating fair value, particularly when evaluating what assumptions market participants would likely make. The use of different assumptions or estimation methodologies could have a material effect on the estimated fair values. Foreign currency translation Our operations span the globe, so we are impacted by changes in foreign currency exchange rates. We determine the functional currency of our subsidiaries based upon the primary currency used to generate and expend cash, which is usually the currency of the country in which the subsidiary is located. For subsidiaries with functional currencies other than the U.S. dollar, assets and liabilities are translated into U.S. dollars using period-end exchange rates, and revenues, expenses, income and losses of our subsidiaries are translated into U.S. dollars using monthly average exchange rates. The resulting foreign currency translation gains or losses are deferred as AOCI and reclassified to earnings only upon sale or liquidation of those businesses. Gains and losses related to the remeasurement of debt and intercompany financing into functional currencies are reported in earnings as other income or expense, net. Gains and losses associated with the remeasurement of operating assets and liabilities into functional currencies are reported within the applicable component of operating income. Leases We primarily enter into real estate leases for manufacturing, warehousing and commercial office space to support our global operations. We also enter into vehicle and equipment leases to support those operations. We determine if an arrangement is a lease at inception. Short-term leases, defined as having an initial term of twelve months or less, are expensed as incurred and not recorded on the balance sheet. We record the value of all other leased property and the related obligations as assets and liabilities on the balance sheet. Information about the amount and classification of lease assets and liabilities is included in note 23. At inception, lease assets and liabilities are measured at the present value of future lease payments over the lease term. As most of our leases do not provide an implicit rate, we exercise judgment in selecting the incremental borrowing rate based on the information available at inception to determine the present value of future payments. Operating lease assets are further adjusted for lease incentives and initial direct costs. Our lease terms may include options to extend or terminate the lease. We exercise judgment to calculate the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that we will exercise those options. Operating lease expense is recognized on a straight-line basis over the lease term, except for variable rent which is expensed as incurred. Short-term lease and variable rent expense was immaterial to the financial statements and has been included within operating lease expense. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset and interest expense. Some of our lease agreements include both lease and non-lease components. We account for those components separately for real estate leases and as a combined single lease component for all other types of leases. Business combinations We account for business acquisitions under the accounting standards for business combinations. The results of each acquisition are included in our consolidated results as of the acquisition date and the purchase price of an acquisition is allocated to tangible and intangible assets and assumed liabilities based on their estimated fair values. Any excess of the fair value consideration transferred over the estimated fair values of the net assets acquired is recognized as goodwill. Any purchase price that is considered contingent consideration is measured at its estimated fair value at the acquisition date. Contingent consideration is remeasured at the end of each reporting period, with changes in estimated fair value being recorded through SG&A expense within our statement of operations. Derivatives and hedging We use derivative instruments primarily to manage currency exchange and interest rate risks and recognize them as either assets or liabilities which are measured at fair value. • Cash flow hedges — We use interest rate derivatives to add stability to interest expense and to manage its exposure to interest rate movements. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative is recorded in AOCI and reclassified into earnings in the same period(s) during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. • Net Investment hedges — We use foreign currency-denominated debt and cross-currency swaps to hedge our net investments in foreign operations against adverse movements in exchange rates. For derivatives designated as net investment hedges, the gain or loss on the derivative is reported in AOCI as part of the cumulative translation adjustment. Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated. |
New accounting standards
New accounting standards | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
New accounting standards | 3. New accounting standards New credit losses standard In June 2016, the FASB issued a new standard that modifies the recognition of credit losses related to financial assets. Under the new standard, an entity must measure and record its total expected credit losses, rather than recording such losses when it is probable that they have occurred, as was required under the previous standard. We adopted the new guidance on January 1, 2020 using a modified retrospective approach applied to our portfolio of trade receivables as of that date. On the adoption date, we (i) recorded a $1.6 million cumulative effect adjustment to increase accumulated deficit, (ii) increased our allowance for credit losses to accounts receivable by $2.2 million, and (iii) recognized a $0.6 million reduction to deferred income tax liabilities. Other There were no other new accounting standards that we expect to have a material impact to our financial position or results of operations upon adoption. |
Business combinations
Business combinations | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business combinations | Business combinations Masterflex acquisition Masterflex is a leading global manufacturer of peristaltic pumps and aseptic single-use fluid transfer technologies. The acquisition strengthens Avantor's offering across all bioproduction and research platforms including monoclonal antibodies (mAbs), cell and gene therapy and mRNA, and supports both therapy and vaccine manufacturing including COVID-19. On November 1, 2021, we completed the acquisition of Masterflex for cash consideration of $2,865.5 million. The fair value of the net assets acquired on November 1, 2021 included the following: (in millions) November 1, 2021 Inventory $ 45.7 Property, plant & equipment 4.4 Other intangible assets 664.2 Goodwill 2,169.1 Other assets and liabilities (3.3) Deferred income taxes, net (14.6) Total net assets $ 2,865.5 The assets acquired and liabilities assumed are recorded at their fair values as part of our Americas operating segment as of November 1, 2021. The balances of the acquired assets and liabilities have been updated from the provisional amounts recorded during the period of acquisition to reflect additional information relating to the fair value of acquired inventory, tangible and intangible assets, working capital, and the related deferred tax assets, and are considered final. The purchase accounting adjustments that impacted current period income were adjustments to other intangible assets and inventory, which impacted amortization expense, recorded as SG&A expenses, and cost of sales, respectively, and were immaterial to the results of our operations. The following table summarizes the fair value of intangible assets acquired on November 1, 2021 and their related weighted average amortization period: (dollars in millions) Fair value Weighted average estimated life Trademark $ 95.8 15.0 years Customer relationships 212.0 13.0 years Developed technology - Tubing 234.4 15.0 years Developed technology - Pumps 122.0 10.0 years Total $ 664.2 The goodwill represents intellectual capital and the acquired assembled workforce, which are other intangible assets that do not qualify for separate recognition. A portion of the goodwill is deductible for tax purposes and is included in the Americas operating segment. Ritter GmbH acquisition On June 10, 2021, we completed the acquisition of Ritter GmbH for net cash consideration of $1,079.8 million, and contingent consideration with a fair value of $6.1 million on the date of acquisition. Ritter GmbH's current business is focused on providing diagnostic system providers and liquid handling OEMs with robotic fluid handling tips, plates, and other consumables. The combination of our companies expanded our proprietary offerings to our biopharma and healthcare customers and enhance our offerings for critical lab automation workflows. The combined businesses also share similar characteristics including a recurring, specification-driven revenue profile and a consumable-driven portfolio of products produced to exacting standards that enhances our unique customer value proposition. The purchase consideration is as follows: (in millions) June 10, 2021 Cash paid at closing $ 1,084.5 Cash acquired (4.7) Net cash consideration 1,079.8 Fair value of acquisition contingent consideration 6.1 Purchase price $ 1,085.9 The contingent consideration has a maximum potential payout of €300.0 million over three years. The fair value of the contingent consideration was determined using a Monte Carlo simulation as further described in note 22. The fair value of the net assets acquired on June 10, 2021 was $1,085.9 million, which included the following: (in millions) June 10, 2021 Accounts receivable $ 33.7 Inventory 30.0 Property, plant & equipment 141.2 Other intangible assets 220.0 Goodwill 807.0 Other assets and liabilities (0.2) Accounts payable (21.5) Accrued expenses (37.2) Debt (20.4) Deferred income taxes, net (66.7) Total net assets $ 1,085.9 The following table summarizes the fair value of intangible assets acquired on June 10, 2021 and their related weighted average amortization period: (dollars in millions) Fair value Weighted average estimated life Customer relationships $ 125.0 18.0 years Developed technology 95.0 7.0 years Total $ 220.0 The goodwill represents intellectual capital and the acquired assembled workforce, which are other intangible assets that do not qualify for separate recognition. Of the goodwill recognized, none is deductible for tax purposes. RIM Bio acquisition On June 1, 2021, we completed the acquisition of RIM Bio, a China-based single-use bioprocess bag manufacturer. RIM Bio's current business provides a complete range of single-use 2D bags, 3D bags, tank liners, bag assemblies and multi-bag manifolds used in the manufacturing of biologics including monoclonal antibodies (mAbs), vaccines, cell and gene therapies, and recombinant proteins. The addition of RIM Bio enables us to better serve our customers by expanding our single-use manufacturing, distribution, and cleanroom capabilities to the AMEA region. The impact of this acquisition is not material to our consolidated financial statements. Revenue from acquired companies Masterflex has generated revenues of $227.3 million during the year ended December 31, 2022 and $40.6 million during the period November 1, 2021 through December 31, 2021. Ritter has generated revenues of $151.1 million during the year ended December 31, 2022 and $108.3 million during the period June 10, 2021 through December 31, 2021. Ritter’s revenues have declined in 2022 compared to prior expectations, primarily from reduced customer demand for medical fluid handling tips due to a decrease in COVID-19 testing. We are taking measures to replace these revenues; however, if these measures are not successful, we may be required to impair Ritter’s long-lived assets. The total carrying value of Ritter’s net assets, excluding goodwill, which is part of our Europe reporting unit, was $247.0 million on December 31, 2022, including $164.7 million of finite-lived intangible assets and $129.2 million of property, plant & equipment. Acquisition-related costs of completed acquisitions For the year ended December 31, 2021, we incurred $77.8 million of acquisition-related costs. These costs consist of non-recurring legal, accounting, investment banking, certain financing and consulting fees incurred to complete our acquisitions. All acquisition costs are expensed in the period incurred and excluded from Adjusted EBITDA, as shown in footnote 7 of these consolidated financial statements. These acquisition costs have been primarily recorded within the Europe, Americas and Corporate operating segments and presented in SG&A in the consolidated statements of operations. Proforma disclosures The following unaudited pro forma combined financial information for the fiscal years ended December 31, 2021 and 2020 gives effect to the Ritter and Masterflex acquisitions as if they had occurred on January 1, 2020. The pro forma information is not necessarily indicative of the results of operations that actually would have occurred under the ownership and management of the Company. (in millions) Year ended December 31, 2021 2020 Revenue $ 7,699.2 $ 6,716.5 Net income 609.3 (29.9) The unaudited pro forma combined financial information presented above includes the accounting effects of the Ritter and Masterflex acquisitions, including, to the extent applicable, amortization charges from acquired intangible assets; depreciation of property, plant and equipment that have been revalued; transaction costs; interest expense; and the related tax effects. |
Earnings or loss per share
Earnings or loss per share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share The following table presents the reconciliation of basic and diluted earnings per share for the years ended December 31, 2022, 2021 and 2020: (in millions, except per share data) Year ended December 31, 2022 Year ended December 31, 2021 Year ended December 31, 2020 Earnings (numerator) Weighted average shares outstanding (denominator) Earnings per share Earnings (numerator) Weighted average shares outstanding (denominator) Earnings per share Earnings (numerator) Weighted average shares outstanding (denominator) Earnings per share Basic $ 662.3 650.9 $ 1.02 $ 508.0 590.5 $ 0.86 $ 52.0 576.3 $ 0.09 Dilutive effect of stock-based awards — 5.6 — 9.1 — 7.1 Dilutive impact of MCPS 24.2 22.9 — — — — Diluted $ 686.5 679.4 $ 1.01 $ 508.0 599.6 $ 0.85 $ 52.0 583.4 $ 0.09 |
Risk and uncertainties
Risk and uncertainties | 12 Months Ended |
Dec. 31, 2022 | |
Risks and Uncertainties [Abstract] | |
Risks and uncertainties | 6. Risks and uncertainties Remeasurement of foreign-denominated debt and intercompany borrowings Our operations span the globe. To fund those operations, we have entered into significant Euro-denominated indebtedness (see note 14), and we have also established significant intercompany borrowings among our subsidiaries that are denominated in various currencies. Changes in foreign currency exchange rates, particularly the Euro, have required us to record gains and losses, some of which have been significant, to remeasure the debt and the intercompany borrowings into functional currencies of the subsidiaries holding them. On July 11, 2019, we completed an intercompany recapitalization that is intended to mitigate substantially all of our net Euro financing exposure in future periods. We still expect to record gains and losses related to intercompany borrowings denominated in other currencies. Historically, the remeasurement of borrowings denominated in currencies other than the Euro has not been material. Impairment testing On October 1, 2022, we performed quantitative annual impairment testing of goodwill for each of our reporting units. We did not record any impairment charges. Each reporting unit had a fair value that was substantially in excess of its carrying value. Unfavorable changes to forecasted results and other assumptions used to determine fair values of reporting units or long-lived assets could present a risk of impairment in future periods. We have not recorded any material impairments during the periods presented. Collective bargaining arrangements As of December 31, 2022, approximately 5% of our employees in North America were represented by unions, and a majority of our employees in Europe are represented by workers’ councils or unions. |
Segment financial information
Segment financial information | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Segment financial information | 7. Segment financial information We report based on three geographic segments based on customer location: the Americas, Europe and AMEA. Each segment manufactures and distributes solutions for the biopharmaceutical, healthcare, education & government and advanced technologies & applied materials industries. Corporate costs are managed on a standalone basis and not allocated to segments. The following tables present information by reportable segment: (in millions) Net sales Year ended December 31, Adjusted EBITDA Year ended December 31, 2022 2021 2020 2022 2021 2020 Americas $ 4,471.2 $ 4,237.4 $ 3,731.5 $ 1,077.3 $ 978.4 $ 802.4 Europe 2,516.5 2,677.3 2,286.7 524.1 538.5 397.8 AMEA 524.7 471.4 375.4 141.5 113.9 79.8 Corporate — — — (172.2) (172.2) (138.4) Total $ 7,512.4 $ 7,386.1 $ 6,393.6 $ 1,570.7 $ 1,458.6 $ 1,141.6 (in millions) Capital expenditures Year ended December 31, Depreciation and amortization Year ended December 31, 2022 2021 2020 2022 2021 2020 Americas $ 88.6 $ 75.0 $ 36.0 $ 260.8 $ 232.3 $ 245.8 Europe 38.9 33.3 22.2 139.2 140.9 139.8 AMEA 5.9 2.8 3.4 5.5 6.0 9.8 Total $ 133.4 $ 111.1 $ 61.6 $ 405.5 $ 379.2 $ 395.4 The amounts above exclude inter-segment activity because it is not material. All of the net sales for each segment are from external customers. The following table presents the reconciliation of Adjusted EBITDA from net income: (in millions) Year ended December 31, 2022 2021 2020 Net income $ 686.5 $ 572.6 $ 116.6 Interest expense 265.8 217.4 307.6 Income tax expense (benefit) 164.6 180.4 (54.3) Depreciation and amortization 405.5 379.2 395.4 Loss on extinguishment of debt 12.5 12.4 346.8 Net foreign currency loss (gain) from financing activities 7.0 1.3 (0.7) Other stock-based compensation (benefit) expense (3.3) 3.0 1.3 Acquisition-related expenses 1 — 77.8 — Integration-related expenses 2 19.2 15.9 17.1 Purchase accounting adjustments 3 9.4 6.3 — Restructuring and severance charges 4 3.5 5.3 11.8 Receipt of disgorgement penalty 5 — (13.0) — Adjusted EBITDA $ 1,570.7 $ 1,458.6 $ 1,141.6 ━━━━━━━━━ 1. Represents legal, accounting, investment banking and consulting fees incurred related to the acquisition of acquired companies. 2. Represents non-recurring direct costs incurred with third parties to integrate acquired companies. These expenses represent incremental costs and are unrelated to normal operations of our business. Integration expenses are incurred over a pre-defined integration period specific to each acquisition. 3. Represents the non-cash reduction of contingent consideration related to the Ritter acquisition and the amortization of the purchase accounting adjustment to record inventory acquired from Masterflex and Ritter at fair value. 4. Reflects the incremental expenses incurred in the period related to initiatives to increase profitability and productivity. Typical costs included in this caption are employee severance, site-related exit costs, and contract termination costs. 5. As described in note 19 to our consolidated financial statements beginning on F-1 of this report. The following table presents net sales by product line: (in millions) Year ended December 31, 2022 2021 2020 Proprietary materials & consumables $ 2,898.4 $ 2,548.2 $ 2,043.6 Third party materials & consumables 2,704.1 2,906.3 2,671.8 Services & specialty procurement 921.0 922.6 817.5 Equipment & instrumentation 988.9 1,009.0 860.7 Total $ 7,512.4 $ 7,386.1 $ 6,393.6 The following table presents information by geographic area: (in millions) Net sales Year ended December 31, Property, plant and equipment, net Year ended December 31, 2022 2021 2020 2022 2021 United States $ 4,278.1 $ 3,931.7 $ 3,493.7 $ 417.0 $ 383.7 Germany 478.7 561.7 511.4 152.1 158.5 Other countries in Europe 2,037.8 2,115.6 1,775.3 103.3 107.1 All other countries 717.8 777.1 613.2 54.6 56.2 Total $ 7,512.4 $ 7,386.1 $ 6,393.6 $ 727.0 $ 705.5 |
Supplemental disclosures of cas
Supplemental disclosures of cash flow information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Supplemental disclosures of cash flow information | 8. Supplemental disclosures of cash flow information The following tables present supplemental disclosures of cash flow information: (in millions) December 31, 2022 2021 Cash and cash equivalents $ 372.9 $ 301.7 Restricted cash classified as other assets 24.0 25.4 Total $ 396.9 $ 327.1 (in millions) Year ended December 31, 2022 2021 2020 Cash flows from operating activities: Cash paid for income taxes, net $ 256.9 $ 144.7 $ 42.7 Cash paid for interest, net, excluding financing leases 242.2 187.0 317.8 Cash paid for interest on finance leases 5.1 5.1 5.3 Cash paid under operating leases 42.9 43.6 42.3 Cash flows from financing activities: Cash paid under finance leases 4.6 4.7 4.3 At December 31, 2022, $349.4 million or 94% of our cash and cash equivalents was held by our non-U.S. subsidiaries and may be subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | 9. Inventory The following table presents components of inventory: (dollars in millions) December 31, 2022 2021 Merchandise inventory $ 556.1 $ 562.9 Finished goods 117.1 102.6 Raw materials 181.2 156.1 Work in process 59.1 50.4 Total $ 913.5 $ 872.0 Inventory under the LIFO method: Percentage of total inventory 26 % 23 % Excess of current cost over carrying value $ 34.1 $ 24.9 |
Property, plant and equipment
Property, plant and equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | 10. Property, plant and equipment The following table presents the components of property, plant and equipment: (in millions) December 31, 2022 2021 Buildings and related improvements $ 393.8 $ 384.3 Machinery, equipment and other 522.2 479.5 Software 130.2 122.3 Land 57.8 67.7 Assets not yet placed into service 141.4 96.9 Property, plant and equipment, gross 1,245.4 1,150.7 Accumulated depreciation (518.4) (445.2) Property, plant and equipment, net $ 727.0 $ 705.5 Depreciation expense was $87.2 million in 2022, $88.4 million in 2021 and $87.9 million in 2020. |
Goodwill and other intangible a
Goodwill and other intangible assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and other intangible assets | 11. Goodwill and other intangible assets The following tables present changes in goodwill by segment: (in millions) December 31, 2022 Americas Europe AMEA Total Beginning balance, net $ 3,411.4 $ 1,897.9 $ 31.8 $ 5,341.1 Currency translation (7.7) (111.1) (1.5) (120.3) Additions 427.1 0.6 4.1 431.8 Ending balance, net 3,830.8 1,787.4 34.4 5,652.6 Accumulated impairment losses 21.0 6.7 11.1 38.8 Ending balance, gross $ 3,851.8 $ 1,794.1 $ 45.5 $ 5,691.4 (in millions) December 31, 2021 Americas Europe AMEA Total Beginning balance, net $ 1,611.6 $ 1,218.5 $ 30.1 $ 2,860.2 Currency translation 0.8 (127.6) (0.4) (127.2) Additions 1,799.0 807.0 2.1 2,608.1 Ending balance, net 3,411.4 1,897.9 31.8 5,341.1 Accumulated impairment losses 21.0 6.7 11.1 38.8 Ending balance, gross $ 3,432.4 $ 1,904.6 $ 42.9 $ 5,379.9 The following table presents the components of other intangible assets: (in millions) December 31, 2022 December 31, 2021 Gross value Accumulated amortization Carrying value Gross value Accumulated amortization Carrying value Customer relationships $ 4,806.4 $ 1,333.5 $ 3,472.9 $ 5,474.2 $ 1,121.6 $ 4,352.6 Trade names 354.4 205.1 149.3 505.1 194.1 311.0 Other 630.9 212.1 418.8 541.5 157.1 384.4 Total finite-lived $ 5,791.7 $ 1,750.7 4,041.0 $ 6,520.8 $ 1,472.8 5,048.0 Indefinite-lived 92.3 92.3 Total $ 4,133.3 $ 5,140.3 Amortization expense was $318.3 million in 2022, $290.8 million in 2021 and $307.5 million in 2020. The following table presents estimated future amortization: (in millions) December 31, 2022 2023 $ 313.1 2024 313.1 2025 311.9 2026 310.5 2027 309.0 Thereafter 2,483.4 Total $ 4,041.0 |
Restructuring and severance
Restructuring and severance | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and severance | 12. Restructuring and severance The following table presents restructuring and severance expenses by plan: (in millions) Year ended December 31, 2022 2021 2020 2017 restructuring program $ — $ — $ 11.0 Other 3.5 5.3 0.8 Total $ 3.5 $ 5.3 $ 11.8 Current year restructuring expenses represent costs related to facility closures and employee severance under various management-approved productivity initiatives. 2017 restructuring program The 2017 restructuring program was a three-year program designed to optimize our sales, gross margins and operating costs, and concluded at December 31, 2020. Spending under the program included $9.6 million for capital expenditures and $129.8 million for employee severance and related costs, facility closures and other charges through its three year duration. The program includes combining sales and marketing resources, eliminating redundant corporate functions, optimizing procurement and our manufacturing footprint, and implementing best practices throughout the organization. The following table presents information about expenses under the 2017 restructuring program for the periods covered under this report in which the plan was active: (in millions) Year ended December 31, Expenses incurred 2020 Employee severance and related $ 10.7 $ 88.6 Facility closure 0.3 2.4 Other — 38.8 Total $ 11.0 $ 129.8 Americas $ 1.1 $ 53.8 Europe 9.9 60.3 AMEA — 0.8 Corporate — 14.9 Total $ 11.0 $ 129.8 The following table presents changes to accrued employee severance and related expenses under the 2017 restructuring program, which are primarily classified as employee-related current liabilities: (in millions) Year ended December 31, 2022 2021 2020 Beginning balance $ 4.1 $ 12.4 $ 15.8 Expenses — — 10.7 Cash payments (2.9) (7.6) (15.1) Currency translation — (0.7) 1.0 Ending balance $ 1.2 $ 4.1 $ 12.4 |
Commitments and contingencies
Commitments and contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | 13. Commitments and contingencies Our business involves commitments and contingencies related to compliance with environmental laws and regulations, the manufacture and sale of products and litigation. The ultimate resolution of contingencies is subject to significant uncertainty, and it is reasonably possible that contingencies could be decided unfavorably for us. Environmental laws and regulations Our environmental liabilities are subject to changing governmental policy and regulations, discovery of unknown conditions, judicial proceedings, method and extent of remediation, existence of other potentially responsible parties and future changes in technology. We believe that known and unknown environmental matters, if not resolved favorably, could have a material effect on our financial position, liquidity and profitability. Matters to be disclosed are as follows: Mallinckrodt indemnification In 2010, New Mountain Capital acquired us from Covidien plc in accordance with a stock purchase agreement dated May 25, 2010. At that time, we were organized as Mallinckrodt Baker, Inc. or MBI. Pursuant to the terms of that agreement, we are entitled to various levels of indemnification with respect to environmental liabilities involving the former MBI operations. In 2013, in connection with the Covidien plc divestiture of Mallinckrodt Group S.a.r.l and Mallinckrodt LLC, together “Mallinckrodt,” and by a second amendment to the stock purchase agreement dated June 6, 2013, but effective upon the consummation of the divestiture, Covidien plc assigned its obligations as described herein to Mallinckrodt, and Mallinckrodt assumed those obligations from Covidien plc. As a result of the stock purchase agreement and assignment, Mallinckrodt is contractually obligated to indemnify and defend us for all off-site environmental liabilities (for example, Superfund or CERCLA liabilities) arising from the pre-closing disposal of chemicals or wastes by former MBI operations. In connection with environmental liabilities arising from pre-closing noncompliance with environmental laws, Mallinckrodt is contractually obligated to reimburse us for a percentage of the total liability, with such reimbursements made through disbursements from a $30.0 million environmental escrow established at the time of the closing. Specifically, Mallinckrodt will be responsible for reimbursement of 80% of the total costs up to $40.0 million of such environmental liabilities. Mallinckrodt will then be responsible for reimbursement of 50% of the next $40.0 million of such environmental liabilities. If such environmental liabilities exceed $80.0 million in the aggregate, Mallinckrodt will be responsible for reimbursement of 100% of such liabilities up to the next $30.0 million in the aggregate. Currently, reimbursements are 80% of the amounts spent by us, with reimbursements and settlements to date exceeding $12.0 million. In addition, in connection with operation and maintenance activities required pursuant to administrative consent orders and subsequently issued remedial action permits involving our Phillipsburg, New Jersey, facility, amounts in excess of a small annual threshold are also subject to reimbursement, currently at the 80% level. Other noteworthy matters The New Jersey Department of Environmental Protection has ordered us to remediate groundwater conditions near our plant in Phillipsburg, New Jersey. This matter is covered by the indemnification arrangement previously described. At December 31, 2022, our accrued obligation under this order is $2.6 million, which is calculated based on expected cash payments discounted at rates ranging from 3.8% to 4.8% between 2022 and 2045. The undiscounted amount of that obligation is $4.0 million. In 2016, we assessed the environmental condition of our chemical manufacturing site in Gliwice, Poland. Our assessment revealed specific types of soil and groundwater contamination throughout the site. We are also monitoring the condition of a closed landfill on that site. These matters are not covered by our indemnification arrangement because they relate to an operation we subsequently acquired. At December 31, 2022, our balance sheet includes a liability of $1.0 million for remediation and monitoring costs. That liability is estimated primarily on discounted expected remediation payments and is not materially different from its undiscounted amount. Manufacture and sale of products Our business involves risk of product liability, patent infringement and other claims in the ordinary course of business arising from the products that we produce ourselves or obtain from our suppliers, as well as from the services we provide. Our exposure to such claims may increase to the extent that we expand our manufacturing operations or service offerings. We maintain insurance policies to protect us against these risks, including product liability insurance. In many cases the suppliers of products we distribute have indemnified us against such claims. Our insurance coverage or indemnification agreements with suppliers may not be adequate in all pending or any future cases brought against us. Furthermore, our ability to recover under any insurance or indemnification arrangements is subject to the financial viability of our insurers, our suppliers and our suppliers’ insurers, as well as legal enforcement under the local laws governing the arrangements. We have entered into indemnification agreements with customers of our self-manufactured products to protect them from liabilities and losses arising from our negligence, willful misconduct or sale of defective products. To date, we have not incurred material costs to defend lawsuits or settle claims related to these indemnification provisions. Litigation At December 31, 2022, there was no outstanding litigation that we believe would result in material losses if decided against us, and we do not believe that there are any unasserted matters that are reasonably possible to result in a material loss. |
Debt
Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Debt | 14. Debt The following table presents information about our debt: (dollars in millions) December 31, 2022 December 31, 2021 Interest terms Rate Amount Receivables facility SOFR 1 plus 0.80% 5.26 % $ 327.2 $ — Senior secured credit facilities: Euro term loans B-3 EURIBOR plus —% — % — 133.9 Euro term loans B-4 EURIBOR plus 2.50% 3.99 % 636.7 684.9 Euro term loans B-5 EURIBOR plus 2.00% 3.49 % 342.0 367.9 U.S. dollar term loans B-4 LIBOR plus —% — % — 229.3 U.S. dollar term loans B-5 LIBOR plus 2.25% 6.32 % 1,488.3 2,063.9 2.625% secured notes fixed rate 2.625 % 694.5 739.6 3.875% unsecured notes fixed rate 3.875 % 800.0 800.0 3.875% unsecured notes fixed rate 3.875 % 427.3 455.1 4.625 % unsecured notes fixed rate 4.625 % 1,550.0 1,550.0 Finance lease liabilities 68.9 71.2 Other 14.2 17.4 Total debt, gross 6,349.1 7,113.2 Less: unamortized deferred financing costs (61.6) (90.0) Total debt $ 6,287.5 $ 7,023.2 Classification on balance sheets: Current portion of debt $ 364.2 $ 45.2 Debt, net of current portion 5,923.3 6,978.0 ━━━━━━━━━ 1. SOFR includes credit spread adjustment. . The following table presents mandatory future repayments of debt principal: (in millions) December 31, 2022 2023 $ 364.2 2024 37.3 2025 731.3 2026 364.4 2027 1,417.4 Thereafter 3,434.5 Total debt, gross $ 6,349.1 Credit facilities The following table presents availability under our credit facilities: (in millions) December 31, 2022 Receivables facility Revolving credit facility Total Capacity $ 357.7 $ 515.0 $ 872.7 Undrawn letters of credit outstanding (13.7) — (13.7) Outstanding borrowings (327.2) — (327.2) Unused availability $ 16.8 $ 515.0 $ 531.8 Current availability under the receivables facility depends upon maintaining a sufficient borrowing base of eligible accounts receivable. At December 31, 2022, $574.9 million of accounts receivable were available as collateral under the facility. Receivables facility The receivables facility is with a commercial bank and functions like a line of credit. On October 25, 2022, we amended the receivables facility to increase its funding limit up to $400.0 million and extended the term to October 27, 2025. The fees to complete this transaction were not material. Borrowings are secured by accounts receivable which are sold by certain of our domestic subsidiaries to a special-purpose consolidated subsidiary. As a result, those receivables are not available to satisfy the claims of other creditors. We bear the risk of collection on those receivables and account for the receivables facility as a secured borrowing. The receivables facility includes representations and covenants that we consider usual and customary, including a financial covenant. That covenant becomes applicable for periods in which we have drawn more than 35% of our revolving credit facility under the senior secured credit facilities. When applicable, we may not have total borrowings in excess of a pro forma net leverage ratio, as defined. This covenant was not applicable at December 31, 2022. Senior secured credit facilities On December 31, 2022, the senior secured credit facilities consist of a $515.0 million revolving credit facility that matures on July 14, 2025, a $1,488.3 million term loan facility that matures on November 8, 2027, a $342.0 million term loan facility that matures on June 9, 2026 and a $636.7 million term loan facility that matures on June 9, 2028. The revolving credit facility allows us to issue letters of credit and also to issue short term notes. Borrowings under the facilities are guaranteed by substantially all of our domestic subsidiaries and secured by substantially all of their assets except for the accounts receivable that secure the receivables facility. The senior secured credit facilities bear interest at variable rates. The margin on the revolving credit facility declines if certain net leverage ratios are achieved. Various other immaterial fees are payable under the facilities. We are required to make additional prepayments if: (i) we generate excess cash flows, as defined, at specified percentages that decline if certain net leverage ratios are achieved; or (ii) we receive cash proceeds from certain types of asset sales or debt issuances. No additional required prepayments have become due since the inception of the credit facilities. We may also prepay the term loans at our option. In 2022 and 2021, we made optional prepayments of $124.0 million and $190.0 million, respectively, of Euro term loans and $782.4 million and $312.7 million, respectively, of U.S. dollar term loans. In connection with the 2022 and 2021 prepayments, we recorded losses on extinguishment of debt of $12.5 million and $12.4 million, respectively, for the proportional write-off of the related unamortized deferred financing costs. The senior secured credit facilities contain certain other customary covenants, including a financial covenant. That covenant becomes applicable in periods when we have drawn more than 35% of our revolving credit facility. When applicable, we may not have total borrowings in excess of a pro forma net leverage ratio, as defined. This covenant was not applicable at December 31, 2022. |
Equity
Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Equity | 15. Equity The following table presents the equity capitalization of Avantor, Inc.: (shares in millions) Par value per share Shares authorized Undesignated preferred stock $ 0.01 75.0 Common stock 0.01 750.0 Conversion of MCPS into Common Stock In May of 2022, all outstanding shares of 6.250% Series A MCPS, par value $0.01 per share, automatically converted into 62.9 million shares of our common stock, in accordance with their terms. The conversion rate for each share of MCPS was 3.0395 shares of our common stock, subject to receipt of cash in lieu of fractional shares, and was determined based on the price of our common stock on the date of conversion. No outstanding shares of the MCPS remained following the mandatory conversion. MCPS accrued cumulative dividends at a rate of 6.250% per annum on the liquidation preference of $50.00 per share. Accrued cumulative dividends in arrears as of December 31, 2022 was $0.0 million, and we paid a dividend of $32.4 million during the year ended December 31, 2022. Common stock Each share of common stock entitles the holder to one vote for applicable matters. Holders are entitled to receive dividends declared by the board of directors and a pro rata share of assets available for distribution after satisfaction of the rights of the preferred stockholders. |
Accumulated other comprehensive
Accumulated other comprehensive income or (loss) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Accumulated other comprehensive income or (loss) | 16. Accumulated other comprehensive income (loss) The following table presents changes in the components of AOCI: (in millions) Foreign currency translation Derivative instruments Defined benefit plans Total Balance on December 31, 2019 $ (62.3) $ (0.5) $ (23.1) $ (85.9) Unrealized gain (loss) 106.4 1.0 (8.3) 99.1 Reclassification of (gain) loss into earnings — (1.7) 0.6 (1.1) Change due to income taxes 7.7 0.2 1.7 9.6 Balance on December 31, 2020 51.8 (1.0) (29.1) 21.7 Unrealized (loss) gain (62.8) (1.6) 7.9 (56.5) Reclassification of loss into earnings — 3.5 0.1 3.6 Change due to income taxes (8.2) (0.5) (3.3) (12.0) Balance on December 31, 2021 (19.2) 0.4 (24.4) (43.2) Unrealized (loss) gain (102.0) 33.1 47.9 (21.0) Reclassification of gain into earnings — (7.4) (1.0) (8.4) Change due to income taxes (10.1) (6.2) (11.4) (27.7) Balance on December 31, 2022 $ (131.3) $ 19.9 $ 11.1 $ (100.3) The reclassifications and income tax effects shown above were immaterial to the financial statements and were made to either cost of sales or selling, general and administrative expense depending upon the nature of the underlying transaction. The income tax effects in 2022 on foreign currency translation were due to our net investment hedge and cross-currency swap discussed in note 21. |
Employee benefit plans
Employee benefit plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Employee benefit plans | 17. Employee benefit plans We sponsor many defined benefit plans across the globe. Those plans have resulted in significant obligations to pay benefits to current and former employees, many of which are at least partially funded with plan assets. Unless required otherwise, we typically seek to close the defined benefit plans to new participants. Defined benefit plans do not materially impact our earnings, and as a result, certain disclosures have been omitted. The following table presents changes in benefit obligations and plan assets and the funded status of our plans: (in millions) U.S. pension plans Year ended December 31, Non-U.S. pension plans Year ended December 31, U.S. medical plan Year ended December 31, 2022 2021 2022 2021 2022 2021 Benefit obligation: Beginning balance $ 230.1 $ 246.0 $ 291.6 $ 301.4 $ 14.9 $ 15.3 Service cost 3.4 3.6 4.1 5.5 0.1 0.2 Interest cost 5.3 4.4 3.3 2.6 0.3 0.3 Employee contributions — — 1.2 1.2 — — Actuarial gain (54.4) (7.6) (92.6) (1.7) (4.7) (0.5) Benefits paid (15.7) (16.3) (5.6) (3.3) (0.4) (0.4) Settlements and curtailments — — (1.5) (1.7) — — Currency translation — — (21.1) (11.1) — — Other — — (0.1) (1.3) — — Ending balance 168.7 230.1 179.3 291.6 10.2 14.9 Fair value of plan assets: Beginning balance 268.9 286.6 182.8 167.5 — — (Loss) return on plan assets (42.5) (2.1) (49.4) 16.9 — — Employer contributions 0.7 0.7 5.6 5.2 0.4 0.4 Employee contributions — — 1.2 1.2 — — Benefits paid (15.7) (16.3) (5.6) (3.3) (0.4) (0.4) Settlements and curtailments — — (1.5) (1.7) — — Currency translation — — (14.7) (3.0) — — Other — — 0.2 — — — Ending balance 211.4 268.9 118.6 182.8 — — Funded status at end of year $ 42.7 $ 38.8 $ (60.7) $ (108.8) $ (10.2) $ (14.9) The following table presents other balance sheet information for defined benefit plans: (in millions) U.S. pension plans December 31, Non-U.S. pension plans December 31, U.S. medical plan December 31, 2022 2021 2022 2021 2022 2021 Accumulated benefit obligation $ 164.0 $ 222.1 $ 176.5 $ 277.5 $ 10.0 $ 14.7 Amounts recorded in balance sheet: Other assets $ 47.8 $ 49.2 $ 4.3 $ 2.9 $ — $ — Other current liabilities (0.7) (0.7) (2.8) (2.9) (0.8) (0.8) Other liabilities (4.4) (9.7) (62.2) (108.8) (9.4) (14.1) Funded status $ 42.7 $ 38.8 $ (60.7) $ (108.8) $ (10.2) $ (14.9) Components of AOCI, excluding tax effects: Actuarial (loss) gain $ (16.1) $ (16.4) $ 21.0 $ (20.9) $ 10.8 $ 6.8 Prior service gain — — 1.2 1.0 — 0.2 The following table presents the assumptions used to determine the benefit obligation: U.S. pension plans Non-U.S. pension plans U.S. medical plan 2022 2021 2022 2021 2022 2021 Discount rate 5.4 % 2.8 % 4.1 % 1.3 % 5.4 % 2.8 % Annual rate of salary increase 3.5 % 2.5 % 1.9 % 1.8 % — — Health care cost trends: Initial rate n/a n/a n/a n/a 5.9 % 5.4 % Ultimate rate n/a n/a n/a n/a 4.0 % 4.0 % Year ultimate rate is reached n/a n/a n/a n/a 2046 2046 The discount rate continues to be the primary driver for changes in the projected benefit obligation. The increases in discount rates in 2022 and 2021 caused most of the actuarial gains in the U.S. and Non-U.S. pension plan projected benefit obligation. The increases in discount rate in the U.S. medical plan in 2022 and 2021 was the primary reason for the actuarial gains. The following table presents future benefits expected to be paid: (in millions) December 31, 2022 U.S. pension plans Non-U.S. pension plans U.S. medical plan 2023 $ 12.7 $ 8.0 $ 0.7 2024 12.8 7.7 0.8 2025 13.2 8.2 0.8 2026 13.2 8.9 0.8 2027 13.2 9.3 0.8 2028 – 2032 65.2 56.4 4.3 We do not expect to make any material contributions to our defined benefit plans in 2023. The following table presents the allocation of plan assets: (in millions) December 31, 2022 December 31, 2021 Total Level 1 Level 2 Level 3 NAV 1 Total Level 1 Level 2 Level 3 NAV 1 U.S. plans: Cash $ 5.2 $ 5.2 $ — $ — $ — $ 4.2 $ 4.2 $ — $ — $ — Fixed income 164.5 — 164.5 — — 211.7 — 211.7 — — Equity 41.7 — 41.7 — — 53.0 — 53.0 — — Total $ 211.4 $ 5.2 $ 206.2 $ — $ — $ 268.9 $ 4.2 $ 264.7 $ — $ — Non-U.S. plans: Cash $ 0.7 $ 0.7 $ — $ — $ — $ 1.4 $ 1.4 $ — $ — $ — Fixed income 46.1 — 46.1 — — 93.3 — 93.3 — — Equity 8.9 — 8.9 — — 19.6 — 19.6 — — Other 19.5 — 6.3 — 13.2 27.1 — 12.9 — 14.2 Insurance contracts 43.4 — — 43.4 — 41.4 — — 41.4 — Total $ 118.6 $ 0.7 $ 61.3 $ 43.4 $ 13.2 $ 182.8 $ 1.4 $ 125.8 $ 41.4 $ 14.2 ━━━━━━━━━ 1. Investments are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy. For the U.S. plans, our primary investment strategy is to match the duration of plan assets with benefit obligations. This strategy, utilizing diversified fixed income funds, attempts to hedge the rate used to discount pension obligations. The fixed income funds invest in long duration investment grade corporate bonds primarily across industrial, financial and utilities sectors and is managed by a single institution. Surplus assets are invested in equity funds. We estimate the expected long-term rate of return on plan assets considering prior performance, the mix of assets and expectations for the long-term returns on those asset classes. Assets measured using Level 3 inputs were not material to the portfolio. For the non-U.S. plans, in many cases we enter into insurance contracts to guarantee payment of benefits for an annual fee. Otherwise, our primary investment strategy is to seek a return on plan assets sufficient to achieve our long-term funding objectives. To seek this return, we invest significantly in global equity funds and secondarily in fixed income funds to mitigate inflation and interest rate risk. These funds primarily invest in inflation-linked and other types of government bonds. We estimate the expected long-term rate of return on plan assets in a similar manner to the U.S. plans. The following table presents changes to plan assets of non-U.S. plans that were measured using unobservable inputs: (in millions) Year ended December 31, 2022 2021 Beginning balance $ 41.4 $ 38.3 Purchases 4.1 9.1 Actual returns 0.5 0.5 Settlements (1.5) (4.8) Currency translation (1.1) (1.7) Ending balance $ 43.4 $ 41.4 |
Stock-based compensation
Stock-based compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-based compensation | 18. Stock-based compensation The following table presents components of stock-based compensation expense: (in millions) Classification Year ended December 31, 2022 2021 2020 Stock options Equity $ 16.0 $ 18.8 $ 16.9 RSUs Equity 31.7 26.8 23.8 Optionholder awards Liability — — 0.6 Other Both (1.9) 5.1 2.8 Total $ 45.8 $ 50.7 $ 44.1 Award classification: Equity $ 49.1 $ 47.7 $ 42.2 Liability (3.3) 3.0 1.9 At December 31, 2022, unvested awards have remaining expense of $71.0 million to be recognized over a weighted average period of 1.6 years. We recognized a reduction to income tax expense as a result of tax benefits associated with our stock-based compensation plans of $10.3 million, $30.0 million and $32.6 million, in 2022, 2021 and 2020, respectively. Our stock-based compensation awards have been issued under a succession of plans sponsored by the ultimate parent of our business, which is currently Avantor, Inc. In connection with the IPO, we adopted the 2019 Plan. The 2019 Plan provides for up to 23.5 million shares of common stock to be issued in the form of stock options, restricted stock units or other equity-based awards or cash-based awards. The 2019 Plan also provides for 1% annual increases to the number of shares of common stock available for issuance unless reduced by our Board of Directors. At December 31, 2022, 27.0 million shares were available for future issuance. The 2019 Plan will automatically terminate on May 17, 2029, and no award may be granted after this date. Stock options The following table presents information about outstanding stock options: (options and intrinsic value in millions) Number of options Weighted average exercise price per option Aggregate intrinsic value Weighted average remaining term Balance on December 31, 2021 16.3 $ 19.83 Granted 1.3 31.52 Exercised (0.7) 16.92 Forfeited (0.8) 20.22 Balance on December 31, 2022 16.1 $ 20.90 $ 41.2 6.1 years Expected to vest 4.6 23.35 10.0 7.9 years Vested 11.5 19.93 31.2 5.4 years During 2022, we granted stock options that have a contractual life of ten years and will vest annually over four years, subject to the recipient continuously providing service to us through each such date. The following table presents weighted-average information about stock options granted: Year ended December 31, 2022 2021 2020 Grant date fair value per option $ 11.09 $ 8.63 $ 5.43 Assumptions used to determine grant date fair value: Expected stock price volatility 31 % 29 % 28 % Risk free interest rate 2.2 % 1.1 % 1.4 % Expected dividend rate nil nil nil Expected life of options 6.3 years 6.3 years 6.2 years The following table presents other information about stock options: (in millions) Year ended December 31, 2022 2021 2020 Fair value of options vested $ 15.4 $ 17.2 $ 12.0 Intrinsic value of options exercised 10.1 74.9 100.8 RSUs The following table presents information about unvested RSUs: (awards in millions) Number of awards Weighted average grant date fair value per award Balance on December 31, 2021 4.4 $ 19.52 Granted 1.1 33.02 Vested (1.1) 18.95 Forfeited (0.2) 26.73 Balance on December 31, 2022 4.2 $ 24.29 During 2022, we granted restricted stock units that will vest annually over three to four years, subject to the recipient continuously providing service to us through each such date. Certain of those awards contain performance and market conditions that impact the number of shares that will ultimately vest. The expense recorded on such awards for the years ended December 31, 2022, 2021 and 2020 was $7.3 million, $7.4 million and $5.1 million, respectively. |
Other income or expense, net
Other income or expense, net | 12 Months Ended |
Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | |
Other income or expense, net | 19. Other income or expense, net The following table presents the components of other income or expense, net: (in millions) Year ended December 31, 2022 2021 2020 Net foreign currency (loss) gain from financing activities $ (7.0) $ (1.3) $ 0.7 Income related to defined benefit plans 6.0 10.4 8.8 Other 0.2 1.5 0.4 Other (expense) income, net $ (0.8) $ 10.6 $ 9.9 |
Income taxes
Income taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income taxes | 20. Income taxes The following table presents detail about captions appearing on the statements of operations: (in millions) Year ended December 31, 2022 2021 2020 Income (loss) before income taxes: United States $ 618.0 $ 555.0 $ (2.6) Foreign 233.1 198.0 64.9 Total $ 851.1 $ 753.0 $ 62.3 Current income tax (expense) benefit: Federal $ (119.9) $ (74.0) $ 30.4 State (32.2) (32.3) (4.8) Foreign (81.6) (91.8) (58.8) Subtotal (233.7) (198.1) (33.2) Deferred income tax (expense) benefit: Federal 18.0 (11.6) 28.0 State 4.4 (1.9) 14.4 Foreign 46.7 31.2 45.1 Subtotal 69.1 17.7 87.5 Income tax (expense) benefit $ (164.6) $ (180.4) $ 54.3 The following table reconciles the income tax provision calculated at the United States federal corporate rate to the amounts presented in the statements of operations: (in millions) Year ended December 31, 2022 2021 2020 Income before income taxes $ 851.1 $ 753.0 $ 62.3 United States federal corporate rate 21 % 21 % 21 % Income tax expense at federal corporate rate (178.7) (158.2) (13.1) State income taxes, net of federal benefit (23.3) (27.0) 7.6 Rate changes related to foreign jurisdictions 1.3 (9.7) (4.0) Stock-based compensation 3.5 14.5 10.1 Foreign taxes 12.8 1.4 5.7 Valuation allowance 4.8 4.1 (1.1) Changes to uncertain tax positions 1.1 (10.7) 40.8 Foreign-derived intangible income 12.1 8.2 6.9 Transaction costs — (2.1) — Other, net 1.8 (0.9) 1.4 Income tax (expense) benefit $ (164.6) $ (180.4) $ 54.3 As a result of the new tax reform legislation, in 2018 we finalized the provisional accounting of previously recognized provisional one-time income tax effects based on new transition tax rules and interpretations issued that year, as shown in the table above. After the utilization of tax attributes such as net operating loss carryforwards, our transition tax payable was $46.4 million at December 31, 2022. Deferred taxes The following table presents the components of deferred tax assets and liabilities: (in millions) December 31, 2022 2021 Deferred tax assets: Reserves and accrued expenses $ 61.7 $ 51.6 Pension, postretirement and environmental liabilities 1.1 14.7 Net operating loss and research and development carryforwards 325.7 312.4 Other 6.1 10.2 Deferred tax assets, gross 394.6 388.9 Less: valuation allowances (179.7) (187.6) Deferred tax assets, net 214.9 201.3 Deferred tax liabilities: Intangibles (810.4) (892.8) Property, plant and equipment (51.3) (52.0) Investment in partnerships (44.1) (148.0) Deferred tax liabilities (905.8) (1,092.8) Net deferred tax liability $ (690.9) $ (891.5) Classification on balance sheets: Other assets $ 40.5 $ 21.5 Deferred income tax liabilities (731.4) (913.0) The (decrease) increase to the valuation allowance was $(7.9) million in 2022, $(22.3) million in 2021 and $16.0 million in 2020. At December 31, 2022, $155.0 million of the valuation allowances presented above relate to foreign net operating loss carryforwards that are not expected to be realized. We evaluate the realization of deferred tax assets by considering such factors as the reversal of existing taxable temporary differences, expected profitability by tax jurisdiction and available carryforward periods. The extent and timing of any such reversals will influence the extent of tax benefits recognized in a particular year. Should applicable losses, credits and deductions ultimately be realized, the resulting reduction in the valuation allowance would generally be recognized as an income tax benefit. Uncertain tax positions We file federal income tax returns in the United States and other tax returns in various states and international jurisdictions. In the normal course of business, we are subject to examination by taxing authorities throughout the world. We provide reserves for positions that are more likely than not to be overturned by a tax authority upon examination. Tax years are subject to examination in the United States since 2009 at the federal level, since 2005 for certain states and in certain international jurisdictions since 2008. The following table reflects changes to the reserve for uncertain tax positions, excluding accrued interest and penalties: (in millions) Year ended December 31, 2022 2021 2020 Beginning balance $ 55.3 $ 46.7 $ 83.6 Additions: Tax positions related to the current year 1.2 5.1 3.4 Tax positions related to prior years — 7.3 3.6 Reductions: Tax positions related to prior years — — (0.1) Settlements with taxing authorities (0.1) (0.9) (43.1) Lapse of statutes of limitations (2.4) (1.6) (1.8) Currency translation (2.2) (1.3) 1.1 Ending balance $ 51.8 $ 55.3 $ 46.7 Accrued interest and penalties related to the reserve for uncertain tax positions were $6.7 million at December 31, 2022, $5.3 million at December 31, 2021 and $3.9 million at December 31, 2020. We believe that it is reasonably possible that the reserve for uncertain tax positions could decrease by up to $1.3 million over the next twelve months. The development of reserves for uncertain tax positions requires judgments about tax issues, potential outcomes and the timing of settlement discussions with tax authorities. If we were to prevail on all uncertain tax positions, we would recognize an income tax benefit. Other matters Undistributed earnings of foreign subsidiaries that are deemed to be permanently invested amount to $2,712.8 million at December 31, 2022. In addition to the one-time transition tax imposed on all accumulated foreign undistributed earnings through December 31, 2017, undistributed earnings of foreign subsidiaries as of December 31, 2022 is subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply. We assert indefinite reinvestment related to investments in foreign subsidiaries. It is not practicable to calculate the unrecognized deferred tax liability on undistributed foreign earnings due to the complexity of the hypothetical calculation. At December 31, 2022, we had federal net operating loss carryforwards of $25.1 million that primarily expire in 2040 and state net operating loss carryforwards of $193.5 million that expire at various times through 2040. In addition, we had foreign net operating loss carryforwards of $621.0 million, which predominantly have indefinite expirations. The increase in U.S. Federal and State net operating losses is related to the 2021 acquisition of Masterflex. |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative and hedging activities | Derivative and hedging activities Hedging instruments: We engage in hedging activities to reduce our exposure to foreign currency exchange rates and interest rates. Our hedging activities are designed to manage specific risks according to our strategies, as summarized below, which may change from time to time. Our hedging activities consist of the following: • Economic hedges — We are exposed to changes in foreign currency exchange rates on certain of our euro-denominated term loans and notes that move inversely from our portfolio of euro-denominated intercompany loans. The currency effects for these non-derivative instruments are recorded through earnings in the period of change and substantially offset one another; • Other hedging activities — Certain of our subsidiaries hedge short-term foreign currency denominated business transactions, external debt and intercompany financing transactions using foreign currency forward contracts. These activities were not material to our consolidated financial statements. Cash flow hedges of interest rate risk Our objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in AOCI and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in AOCI related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable-rate debt. During the next twelve months, the Company estimates that an additional $15.2 million will be reclassified as a reduction to interest expense. As of December 31, 2022, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: (dollars in millions) Interest rate derivative Number of instruments Notional Interest rate swaps 1 $ 750.0 Effect of cash flow hedge accounting on AOCI The table below presents the effect of cash flow hedge accounting on AOCI for the years ended December 31, 2022 and 2021. (in millions) Hedging relationships Amount of gain or (loss) recognized in OCI on Derivative Location of gain or (loss) reclassified from AOCI into income Amount of gain or (loss) reclassified from AOCI into income Year ended December 31, Year ended December 31, 2022 2021 2022 2021 Interest rate products 24.3 — Interest expense (1.9) — Total $ 24.3 $ — $ (1.9) $ — Effect of cash flow hedge accounting on the income statement The table below presents the effect of our derivative financial instruments on the statement of operations for the years ended December 31, 2022 and 2021. Year ended December 31, 2022 2021 (in millions) Interest income (expense) Interest income (expense) Total amounts of line items presented in the statements of operations where the effects of cash flow hedges are recorded $ (265.8) $ — Amount of loss reclassified from AOCI into income $ (1.9) $ — Net investment hedges We are exposed to fluctuations in foreign exchange rates on investments it holds in foreign entities, specifically our net investment in Avantor Holdings B.V., a EUR-functional-currency consolidated subsidiary, against the risk of changes in the EUR-USD exchange rate. For derivatives designated as net investment hedges, the gain or loss on the derivative is reported in AOCI as part of the cumulative translation adjustment. Amounts are reclassified out of AOCI into earnings when the hedged net investment is either sold or substantially liquidated. As of December 31, 2022, we had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations: (value in millions) Foreign currency derivative Number of instruments Notional sold Notional purchased Cross-currency swaps 1 € 732.1 € 750.0 Effect of net investment hedges on AOCI and the income statement The table below presents the effect of our net investment hedges on AOCI and the statement of operations for the years ended December 31, 2022 and 2021. (in millions) Hedging relationships Amount of gain or (loss) recognized in OCI on Derivative Location of gain or (loss) recognized in income on Derivative (amount excluded from effectiveness testing) Amount of gain or (loss) recognized in income on Derivative (amount excluded from effectiveness testing) Year ended December 31, Year ended December 31, 2022 2021 2022 2021 Cross currency swaps $ 30.6 $ — Interest income $ 9.7 $ — Total $ 30.6 $ — $ 9.7 $ — The Company did not reclassify any other deferred gains or losses related to cash flow hedge from accumulated other comprehensive income (loss) to earnings for the years ended December 31, 2022 and 2021. The table below presents the fair value of our derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2022 and 2021.: Asset derivatives Liability derivatives December 31, December 31, 2022 2021 2022 2021 (in millions) Balance sheet location Fair value Balance sheet location Fair value Balance sheet location Fair value Balance sheet location Fair value Derivatives designated as hedging instruments: Interest rate products Other current assets $ 26.2 Other current assets $ — Other current liabilities $ — Other current liabilities $ — Foreign exchange products Other current assets — Other current assets — Other current liabilities (21.4) Other current liabilities — Total $ 26.2 $ — $ (21.4) $ — Termination of cross-currency swap In July 2022, we terminated our existing $750.0 million cross-currency swap, maturing on April 30, 2025 and monetized $42.5 million of cash proceeds. We simultaneously entered into new on-market $750.0 million fixed-to-fixed cross-currency swap to hedge our exposure to changes in foreign exchange rates of its foreign investments. The purpose of this swap is to replace the swap that we terminated in July 2022. The new swap matures on April 30, 2025. Cross-currency swaps involve the receipt of functional- currency fixed-rate amounts from a counterparty in exchange for making foreign-currency fixed-rate payments over the life of the agreeme nt. Non-derivative financial instruments which are designated as hedging instruments: We designated all of our outstanding €400.0 million 3.875% senior unsecured notes, issued on July 17, 2020, and maturing on July 15, 2028, as a hedge of our net investment in certain of our European operations. For instruments that are designated and qualify as net investment hedges, the foreign currency transactional gains or losses are reported as a component of AOCI. The gains or losses would be reclassified into earnings upon a liquidation event or deconsolidation of a hedged foreign subsidiary. Net investment hedge effectiveness is assessed based upon the change in the spot rate of the foreign currency denominated debt. The critical terms of the foreign currency notes match the portion of the net investments designated as being hedged. At December 31, 2022, the net investment hedge was equal to the designated portion of the European operations and was considered to be perfectly effective. The accumulated (gain) loss related to the foreign currency denominated debt designated as net investment hedges classified in the foreign currency translation adjustment component of AOCI was $(24.3) million and $3.5 million as of December 31, 2022 and December 31, 2021, respectively. The amount of (gain) loss related to the foreign currency denominated debt designated as net investment hedges classified in the foreign currency translation adjustment component of other comprehensive income is presented below: (in millions) Year ended December 31, 2022 2021 2020 Net investment hedges $ (27.8) $ (34.1) $ 37.6 |
Financial instruments and fair
Financial instruments and fair value measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Financial instruments and fair value measurements | 22. Financial instruments and fair value measurements Our financial instruments include cash and cash equivalents, accounts receivable, accounts payable, debt, contingent consideration arrangements and derivatives. Assets and liabilities for which fair value is only disclosed The carrying amount of cash and cash equivalents was the same as its fair value and is a level 1 measurement. The carrying amounts for trade accounts receivable and accounts payable approximated fair value due to their short-term nature and are level 2 measurements. The following table presents the gross amounts, which exclude unamortized deferred financing costs, and the fair values of debt instruments: (in millions) December 31, 2022 December 31, 2021 Gross amount Fair value Gross amount Fair value Receivables facility $ 327.2 $ 327.2 $ — $ — Senior secured credit facilities: Euro term loans B-3 — — 133.9 133.7 Euro term loans B-4 636.7 627.5 684.9 683.6 Euro term loans B-5 342.0 340.7 367.9 367.7 U.S. dollar term loans B-4 — — 229.3 224.9 U.S. dollar term loans B-5 1,488.3 1,485.5 2,063.9 2,029.1 2.625% secured notes 694.5 658.5 739.6 758.2 3.875% unsecured notes 800.0 672.0 800.0 810.9 3.875% unsecured notes 427.3 396.5 455.1 475.3 4.625 % unsecured notes 1,550.0 1,407.6 1,550.0 1,629.8 Finance lease liabilities 68.9 68.9 71.2 71.2 Other 14.2 14.2 17.4 17.4 Total $ 6,349.1 $ 5,998.6 $ 7,113.2 $ 7,201.8 The fair values of debt instruments are based on standard pricing models that take into account the present value of future cash flows, and in some cases private trading data, which are level 2 measurements. Recurring fair value measurements with significant unobservable inputs Certain of the business acquisitions we completed entitle the sellers to contingent consideration based on sales or earnings during a period of time following the acquisition. The following table presents changes to contingent consideration liabilities: (in millions) Year ended December 31, 2022 2021 Beginning balance $ 5.7 $ — Acquisitions — 6.1 Changes to estimated fair value (4.4) — Cash payments — — Currency translation (0.1) (0.4) Ending balance $ 1.2 $ 5.7 We estimated the fair value of contingent consideration on a recurring basis using the average of probability-weighted potential payments specified in the purchase agreements, which were level 3 measurements. The significant assumptions used in these calculations include forecasted results and the estimated likelihood for each performance scenario. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases, finance | 23. Leases The following table presents lease assets and liabilities and their balance sheet classification: (in millions) Classification December 31, 2022 2021 Operating leases: Lease assets Other assets $ 118.7 $ 107.8 Current portion of liabilities Other current liabilities 35.6 34.1 Liabilities, net of current portion Other liabilities 86.6 78.6 Finance leases: Lease assets Property, plant and equipment, net 55.3 59.9 Current portion of liabilities Current portion of debt 4.3 4.2 Liabilities, net of current portion Debt, net of current portion 64.7 67.0 The following tables present information about lease expense: (in millions) Year ended December 31, 2022 2021 2020 (1,2) (1,2) (1,2) Operating lease expense $ 48.5 $ 48.2 $ 52.0 Finance lease expense 10.7 11.1 11.3 Total $ 59.2 $ 59.3 $ 63.3 (1) Operating lease expense for 2022 and 2021 includes $7.9 million and $7.3 million, respectively, classified as cost of sales and $40.6 million and $40.9 million classified as SG&A expenses, respectively. (2) Finance lease expense consists primarily of amortization of finance lease assets that is classified as SG&A expenses. December 31, 2022 2021 Weighted average remaining lease term: Operating leases 6.3 years 5.0 years Finance leases 12.7 years 13.5 years Weighted average discount rate: Operating leases 3.9 % 4.4 % Finance leases 7.8 % 7.9 % The following table presents future payments due under leases reconciled to lease liabilities: (in millions) December 31, 2022 Operating leases Finance leases 2023 $ 39.1 $ 9.3 2024 31.9 9.2 2025 19.5 8.5 2026 12.5 7.8 2027 6.5 7.8 Thereafter 26.6 73.3 Total undiscounted lease payments 136.1 115.9 Difference between undiscounted and discounted lease payments (13.9) (46.9) Lease liabilities $ 122.2 $ 69.0 |
Leases, operating | 23. Leases The following table presents lease assets and liabilities and their balance sheet classification: (in millions) Classification December 31, 2022 2021 Operating leases: Lease assets Other assets $ 118.7 $ 107.8 Current portion of liabilities Other current liabilities 35.6 34.1 Liabilities, net of current portion Other liabilities 86.6 78.6 Finance leases: Lease assets Property, plant and equipment, net 55.3 59.9 Current portion of liabilities Current portion of debt 4.3 4.2 Liabilities, net of current portion Debt, net of current portion 64.7 67.0 The following tables present information about lease expense: (in millions) Year ended December 31, 2022 2021 2020 (1,2) (1,2) (1,2) Operating lease expense $ 48.5 $ 48.2 $ 52.0 Finance lease expense 10.7 11.1 11.3 Total $ 59.2 $ 59.3 $ 63.3 (1) Operating lease expense for 2022 and 2021 includes $7.9 million and $7.3 million, respectively, classified as cost of sales and $40.6 million and $40.9 million classified as SG&A expenses, respectively. (2) Finance lease expense consists primarily of amortization of finance lease assets that is classified as SG&A expenses. December 31, 2022 2021 Weighted average remaining lease term: Operating leases 6.3 years 5.0 years Finance leases 12.7 years 13.5 years Weighted average discount rate: Operating leases 3.9 % 4.4 % Finance leases 7.8 % 7.9 % The following table presents future payments due under leases reconciled to lease liabilities: (in millions) December 31, 2022 Operating leases Finance leases 2023 $ 39.1 $ 9.3 2024 31.9 9.2 2025 19.5 8.5 2026 12.5 7.8 2027 6.5 7.8 Thereafter 26.6 73.3 Total undiscounted lease payments 136.1 115.9 Difference between undiscounted and discounted lease payments (13.9) (46.9) Lease liabilities $ 122.2 $ 69.0 |
Condensed unconsolidated financ
Condensed unconsolidated financial information of Avantor, Inc. | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed unconsolidated financial information of Avantor, Inc. | 24. Condensed unconsolidated financial information of Avantor, Inc. Pursuant to SEC regulations, the following presents condensed unconsolidated financial information of the registrant, Avantor, Inc. The following condensed unconsolidated financial statements should be read in conjunction with our consolidated financial statements and notes thereto because certain applicable disclosures are provided there. In these condensed unconsolidated financial statements, all of our subsidiaries are wholly-owned for the periods presented and presented as investments of Avantor, Inc. under the equity method. Under that method, the equity interest in subsidiaries’ assets and liabilities is stated as a net non current asset at historical cost on the balance sheet. No statements of operations are included because Avantor, Inc. only had equity in the earnings or loss of its subsidiaries for the periods presented in amounts equal to our consolidated net income or loss. Avantor, Inc. Condensed unconsolidated balance sheets (in millions) December 31, 2022 2021 Assets Investment in unconsolidated subsidiaries $ 4,855.4 $ 4,197.0 Total assets $ 4,855.4 $ 4,197.0 Stockholders’ equity MCPS including paid-in capital, 0.0 and 20.7 shares outstanding $ — $ 1,003.7 Common stock including paid-in capital, 674.3 and 609.7 shares outstanding 3,785.3 2,752.6 Accumulated earnings 1,170.4 483.9 Accumulated other comprehensive loss (100.3) (43.2) Total stockholders’ equity $ 4,855.4 $ 4,197.0 Avantor, Inc. Condensed unconsolidated statements of cash flows (in millions) Year ended December 31, 2022 Year ended December 31, 2021 Year ended December 31, 2020 Cash flows from investing activities: Contribution from (to) unconsolidated subsidiaries $ 28.3 $ (967.3) $ — Net cash provided by (used in) investing activities 28.3 (967.3) — Cash flows from financing activities: Proceeds from issuance of stock, net of issuance costs — 967.0 — Payments of dividends on preferred stock (32.4) (64.6) (64.6) Contribution from unconsolidated subsidiaries — — 44.4 Proceeds received from exercise of stock options, net of shares repurchased to satisfy employee tax obligations for vested stock-based awards 4.1 64.9 20.2 Net cash (used in) provided by financing activities (28.3) 967.3 — Net change in cash and cash equivalents — — — Cash, cash equivalents and restricted cash, beginning of year — — — Cash, cash equivalents and restricted cash, end of year $ — $ — $ — |
Valuation and qualifying accoun
Valuation and qualifying accounts | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and qualifying accounts | 25. Valuation and qualifying accounts The following table presents changes to our valuation and qualifying accounts: (in millions) Allowance for expected credit losses Valuation allowances on deferred tax assets Balance on December 31, 2019 $ 18.6 $ 193.9 Cumulative effect of adopting new accounting standard 2.2 — Charged to costs and expenses 10.2 2.4 Deductions (1) (4.1) — Currency translation (0.7) 13.6 Balance on December 31, 2020 26.2 209.9 Charged to costs and expenses 3.6 (9.4) Deductions (1) (2.6) — Currency translation (0.8) (12.9) Balance on December 31, 2021 26.4 187.6 Charged to costs and expenses 6.9 2.7 Deductions (1) (3.7) — Currency translation (1.4) (10.6) Balance on December 31, 2022 $ 28.2 $ 179.7 (1) For the allowance for expected credit losses, deductions represent bad debts charged off, net of recoveries, and other additions represent recoveries, net of bad debts charged off. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of presentation | Basis of presentation The accompanying financial statements have been prepared in accordance with the rules and regulations of the SEC for annual reports and GAAP. The financial statements include the accounts of Avantor, Inc., its consolidated subsidiaries, and those business entities in which we maintain a controlling interest. The financial statements reflect the adoption of a new credit losses standard at January 1, 2020. Information about this accounting standard is disclosed in note 3. Conversion of MCPS into Common Stock In May of 2022, all outstanding shares of 6.250% Series A MCPS, par value $0.01 per share, automatically converted into 62.9 million shares of our common stock, in accordance with their terms. The conversion rate for each share of MCPS was 3.0395 shares of our common stock, subject to receipt of cash in lieu of fractional shares, and was determined based on the price of our common stock on the date of conversion. No outstanding shares of the MCPS remained following the mandatory conversion. |
Principles of consolidation | Principles of consolidation All intercompany balances and transactions have been eliminated from the financial statements. |
Use of estimates | Use of estimates The preparation of financial statements in conformity with GAAP requires us to make estimates and assumptions that affect the amounts reported throughout the financial statements. Actual results could differ from those estimates. |
Earnings or loss per share | Earnings per share Basic earnings per share is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding during the reporting period. Diluted earnings per share is computed based on the weighted average number of common shares outstanding increased by the number of additional shares that would have been outstanding had the potentially dilutive common shares been issued and reduced by the number of shares we could have repurchased with the proceeds from the issuance of the potentially dilutive shares. Variable conversion ratios are determined as of period end. Preferred dividends are added back to net income available to common stockholders provided that the preferred securities are not anti-dilutive to the calculation. |
Segment reporting | Segment reporting We report three geographic segments based on customer location: the Americas, Europe and AMEA. Our operating segments are the same as our reportable segments. None of our customers contributed more than 10% to our net sales, and we disclose net sales for the following product lines: proprietary materials & consumables, third party materials & consumables, services & specialty procurement and equipment & instrumentation. We disclose geographic data for our two largest countries, the United States and Germany, as a percentage of consolidated net sales. No other countries were individually material. We also disclose certain regional data because of differences in geopolitical and / or competitive conditions. We disclose property and equipment by geographic area because many of these assets cannot be readily moved and are illiquid, subjecting them to geographic risk. None of our other long-lived assets are subject to significant geopolitical risk. We do not manage total assets on a segment basis. Segment information about interest expense, income tax expense or benefit and other significant non-cash items are not disclosed because they are not included in the segment profitability measurement nor are they otherwise provided to our chief operating decision maker on a regular basis. |
Cash and cash equivalents | Cash and cash equivalents Cash equivalents are comprised of highly-liquid investments with original maturities of three months or less. Bank overdrafts are classified as current liabilities, and changes to bank overdrafts are presented as a financing activity on our consolidated statements of cash flows. |
Accounts receivable and allowance for current expected credit losses | Accounts receivable and allowance for current expected credit losses Substantially all of our accounts receivable are trade accounts that are recorded at the invoiced amount and generally do not bear interest. Accounts receivable are presented net of an allowance for current expected credit losses. We consider many factors in estimating our allowance including the age of our receivables, historical collections experience, customer types, creditworthiness and economic trends. Account balances are written off against the allowance when we determine it is probable that the receivable will not be recovered. |
Inventory | Inventory Inventory consists of merchandise inventory related to our distribution business and finished goods, raw materials and work in process related to our manufacturing business. Goods are removed from inventory as follows: • Merchandise inventory purchased by certain U.S. subsidiaries using the last-in, first-out method. • All other merchandise inventory using the first-in, first-out method. • Manufactured inventories using an average cost method. Inventory is valued at the lower of cost or net realizable value. Cost for manufactured goods is determined using standard costing methods to estimate raw materials, labor and overhead consumed. Variances from actual cost are recorded to inventory at period-end. Cost for other inventory is based on amounts invoiced |
Property, plant and equipment | Property, plant and equipment Property, plant and equipment are stated at cost. Depreciation is recognized using the straight-line method over estimated useful lives of three three three Software development costs are capitalized as property, plant and equipment once the preliminary project stage is completed and management commits to funding the project if it is probable that the project will be completed for its intended use. Preliminary project planning and training costs related to software are expensed as incurred. |
Impairment of long-lived assets | Impairment of long-lived assets Long-lived assets include property, plant and equipment, finite-lived intangible assets and certain other assets. For impairment testing purposes, long-lived assets may be grouped with working capital and other types of assets or liabilities if they generate cash flows on a combined basis. We evaluate long-lived assets or asset groups for impairment whenever events or changes in circumstances indicate a potential inability to recover their carrying amounts. Impairment is determined by comparing their carrying value to their estimated undiscounted future cash flows. If long-lived assets or asset groups are impaired, the loss is measured as the amount by which their carrying values exceed their fair value. |
Goodwill and other intangible assets | Goodwill and other intangible assets Goodwill represents the excess of the price of an acquired business over the aggregate fair value of its net assets. Other intangible assets consist of both finite-lived and indefinite-lived intangible assets. Goodwill and other indefinite-lived intangible assets are tested annually for impairment on October 1 of each year and whenever an impairment indicator arises. Goodwill impairment testing is performed at the reporting unit level. Our reporting units are Americas, NuSil, Europe and AMEA. Our finite-lived intangible assets are tested for impairment whenever an impairment indicator arises. Examples of impairment indicators include unexpected adverse business conditions, economic factors, unanticipated technological changes or competitive activities, loss of key personnel and acts or anticipated acts by governments and courts. The impairment analysis for goodwill and indefinite-lived intangible assets consists of an optional qualitative assessment potentially followed by a quantitative analysis. If we determine that the carrying value of a reporting unit or an indefinite-lived intangible asset exceeds its fair value, an impairment charge is recorded for the excess. Indefinite-lived intangible assets are not amortized. Annually, we evaluate whether these assets continue to have indefinite lives, considering whether they have any legal, regulatory, contractual, competitive or economic limitations and whether they are expected to contribute to the generation of cash flows indefinitely. Finite-lived intangible assets are amortized over their estimated useful lives on a straight-line basis, with customer relationships amortized over lives of ten ten five |
Restructuring and severance charges | Restructuring and severance charges Restructuring plans are designed to improve gross margins and reduce operating costs over time. We typically incur upfront charges to implement those plans related to employee severance, facility closure and other actions: • Employee severance and related — Employee severance programs can be voluntary or involuntary. Voluntary severances are recorded at their reasonably estimated amount when associates accept severance offers. Involuntary severances covered by plan or statute are recorded at estimated amounts when probable and reasonably estimable. Significant judgment is required to determine probability and whether the amount can be reasonably estimated. Involuntary severances requiring continuing service are measured at fair value as of the termination date and recognized on a straight-line basis over the service period. Other involuntary severances are recognized at fair value on the date we notify associates of the severance plan, provided approval is obtained by the appropriate level of management. • Facility closure — On the date we cease using a facility, facility lease assets are tested for impairment in the same way as other long-lived assets. The remaining lease expense is recognized between the period that we commit to cease use of a facility and the date we exit. • Other — Other charges may be incurred to write down assets, divest businesses or for other reasons and are accounted for under applicable GAAP as described elsewhere in these policies. Restructuring and severance charges are classified as SG&A expenses. Accrued restructuring and severance charges are classified as employee-related or current liabilities if we anticipate settlement within one year, otherwise they are included in other liabilities. |
Contingencies | Contingencies Our business exposes us to various contingencies including compliance with environmental laws and regulations, legal exposures related to the manufacture and sale of products and other matters. Loss contingencies are reflected in the financial statements based on our assessments of their expected outcome or resolution: • They are recognized as liabilities on our balance sheet if the potential loss is probable and the amount can be reasonably estimated. • They are disclosed if the potential loss is material and considered at least reasonably possible. Significant judgment is required to determine probability and whether the amount can be reasonably estimated. Due to uncertainties related to these matters, accruals are based only on the information |
Debt | Debt Borrowings under lines of credit are stated at their face amount. Borrowings under term debt and through the issuance of notes are stated at their face amounts net of unamortized deferred financing costs, including any original issue discounts or premiums. The accounting for financing costs depends on whether debt is newly issued, extinguished or modified. That determination is made on an individual lender basis when the lenders are part of a syndication. When new debt is issued, financing costs and discounts are deferred and recognized as interest expense through maturity of the debt. When debt is extinguished, unamortized deferred financing costs and discounts are written off and presented as a loss on extinguishment of debt. When debt is modified, new financing costs and prior unamortized deferred financing costs may be either (i) immediately recognized as interest expense, other expense, or SG&A expense or (ii) deferred and recognized as interest expense through maturity of the modified debt, depending on the type of cost and whether the modification was substantial or insubstantial. Borrowings and repayments under lines of credit are short-term in nature and presented on the statement of cash flows on a net basis. |
Equity | Equity Stockholders’ equity or deficit comprises nonredeemable ownership interests in MCPS and common stock. Our accounting policies for these instruments are as follows: • MCPS is classified as permanent equity and initially recorded at fair value, net of issuance costs. Accrued but unpaid MCPS dividends are classified as other current liabilities with a corresponding reduction to common stock including paid-in capital. • Common stock is presented at par value plus additional paid-in amounts, net of issuance costs. Distributions are accounted for as reductions to common stock including paid-in capital and are classified as financing activities on the statement of cash flows. • Upon issuance, paid-in capital is allocated among host stock instruments on a relative fair value basis. Costs directly associated with new equity issuances are recorded as other current assets until the issuances are completed or abandoned. If the issuance is completed, the costs are reclassified to stockholders’ equity and presented as a reduction of proceeds received. If the issuance is abandoned, the costs are reclassified to SG&A expenses. Costs associated with secondary equity offerings under a registration rights agreement are recorded as SG&A expenses. Disclosures about certain classes of stock are provided in the footnotes and not stated separately on the balance sheet or statement of stockholders’ equity when those presentations are not deemed to be material. |
Revenue recognition | Revenue recognition We recognize revenue by applying a five-step process: (i) identify the contract with a customer, (ii) identify the performance obligation in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue as the performance obligations are satisfied by transferring control of the performance obligation through delivery of a promised product or service to a customer. Control of a performance obligation may transfer to the customer either at a point in time or over time depending on an evaluation of the specific facts and circumstances for each contract, including the terms and conditions of the contract as agreed with the customer, as well as the nature of the products or services to be provided. The substantial majority of our net sales are recognized at a point in time based upon the delivery of products to customers pursuant to purchase orders. We recognize service revenues and sales of certain of our custom-manufactured products over time as control passes to the customer concurrent with our performance. We are able to fulfill most purchase orders rapidly, and service and custom-manufacturing cycles are short. As a result, we do not record material contract assets or liabilities, nor do we have material unfulfilled performance obligations. We have elected to use the practical expedient not to adjust the transaction price of a contract for the effects of a significant financing component if, at the inception of the contract, we expect that the period between when we transfer a promised good or service to a customer and when the customer pays for that good or service will be one year or less. Some customer contracts include variable consideration, such as rebates and prebates, some of which depend upon our customers meeting specified performance criteria, such as a purchasing level over a period of time. We use judgment to estimate the value of these pricing arrangements at each reporting date and record contract assets or liabilities to the extent that estimated values are recognized at a different time than the revenue for the related products. When estimating variable consideration, we also apply judgment when considering the probability of whether a reversal of revenue could occur and only recognize revenue subject to this constraint. The only significant costs we incur to obtain contracts are related to sales commissions. These commissions are primarily based on purchase order amounts, not recoverable and not applicable to periods greater than one year. We elected to apply the practical expedient to expense these costs as incurred as if the amortization period of the asset that would have otherwise been recognized is one year or less. Performance obligations following the delivery of products, such as rights of return and warranties, are not material. No other types of revenue arrangements were material to our consolidated financial statements. |
Classification of expenses - cost of sales | Classification of expenses — cost of sales Cost of sales includes the cost of the product, depreciation of production assets, supplier rebates, shipping and receiving charges and inventory adjustments. For manufactured products, the cost of the product includes direct and indirect manufacturing costs, plant administrative expenses and the cost of raw materials consumed in the manufacturing process. |
Classification of expenses - selling, general and administrative | Classification of expenses — selling, general and administrative Selling, general and administrative expenses include personnel and facility costs, amortization of intangible assets, depreciation of non-production assets, research and development costs, advertising expense, promotional charges and other charges related to our global operations. Research and development expenses were not material for the periods presented. |
Employee benefit plans | Employee benefit plans Some of our employees participate in defined benefit plans that we sponsor. We present these plans as follows due to their differing geographies, characteristics and actuarial assumptions: • U.S. plans — Two plans based in the United States, one of which we acquired from VWR in 2017. Another plan acquired from VWR was merged with ours in 2018. The U.S. plans are closed to participants who joined the Company after 2018, and annual accruals of future pension benefits for participating employees are not material to our financial statements. • Non-U.S. plans — Eight plans for our employees around the world that we acquired from VWR in 2017, most of which continue to accrue future pension benefits. • Medical plan — A post-retirement medical plan for certain employees in the United States. The medical plan is closed to new employees, and annual accruals of future pension benefits for participating employees are not material to our financial statements. We sponsor a number of other defined benefit plans around the world that are not material individually or in the aggregate and therefore are not included in our disclosures. Defined contribution and other employee benefit plans are also not material. The cost of our defined benefit plans is incurred systematically over expected employee service periods. We use actuarial methods and assumptions to determine expense each period and the value of projected benefit obligations. Actuarial changes in the projected value of defined benefit obligations are deferred to AOCI and recognized in earnings systematically over future periods. The portion of cost attributable to continuing employee service is included in SG&A expenses. The rest of the cost is included in other income or expense, net. |
Stock-based compensation expense | Stock-based compensation expense Some of our management and directors are compensated with stock-based awards. Stock-based compensation expense is included in SG&A expenses on the statement of operations. Stock options and RSUs We measure the expense of stock options and RSUs based on their grant-date fair values. These awards typically vest with continuing service, so expense is recognized on a straight-line basis from the date of grant through the end of the requisite service period. When awards are contingent upon the achievement of a performance condition, we record expense over the life of the awards in accordance with the probability of achievement. We measure the expense of awards with a market condition based on the grant-date fair value, which includes the probability of achieving the market condition. We recognize forfeitures of unvested awards as they occur by reversing any expense previously recorded in the period of forfeiture. We issue new shares of common stock upon exercise or vesting of awards. The grant-date fair value of stock options is measured using the Black-Scholes pricing model using assumptions based on the terms of each stock option agreement, the expected behavior of grant recipients and peer company data. We have limited historical data about our own awards upon which to base our assumptions. Expected volatility is calculated based on the observed equity volatility for a peer group over a period of time equal to the expected life of the stock options. The risk-free interest rate is based on U.S. Treasury observed market rates continuously compounded over the duration of the expected life. The expected life of stock options is estimated as the midpoint of the weighted average vesting period and the contractual term. The grant-date fair value for RSUs in which the vesting condition is based only on continuing service is measured as the quoted closing price of our common stock on the grant date. For awards with market conditions, we measure the grant-date fair value using a Monte Carlo model. The grant-date fair value of awards with performance conditions is the quoted closing price of our common stock on the grant date, adjusted for the probability of achievement. Award modifications When stock-based compensation arrangements are modified, we treat the modification as an exchange of the original award for a new award and immediately recognize expense for the incremental value of the new award. The incremental value is measured as the excess of the fair value of new awards over the fair value of the original awards, each based on circumstances and assumptions as of the modification date. Fair value is measured using the same methods previously described. |
Income taxes | Income taxes Our worldwide income is subject to the income tax regulations of many governments. Income tax expense is calculated using an estimated global rate with recognition of deferred tax assets and liabilities for expected temporary differences between taxable and reported income. Deferred tax assets and liabilities are measured using the enacted tax rates expected to apply to taxable income when those temporary differences are expected to reverse. We record a valuation allowance to reduce deferred tax assets to the amount that is more likely than not to be realized. Income tax regulations change from time to time. The effect of a change in tax law on deferred tax assets and liabilities is recognized as a cumulative adjustment to income tax expense or benefit in the period of enactment. The effect of a change in tax law on the income tax expense or benefit itself is recognized prospectively for the applicable tax years. Income tax regulations can be complex, requiring us to interpret tax law and take positions. Upon audit, tax authorities may challenge our positions. We regularly assess the outcome of potential examinations and only recognize positions that are more likely than not to be sustained. Recognized income tax positions are measured at the largest amount that is more likely than not of being realized. Changes in recognition or measurement are reflected in the period in which a change in judgment occurs, as a result of information that arises or when a tax position is effectively settled. We recognize accrued interest and penalties related to unrecognized tax benefits as a component of income tax expense in our consolidated financial statements. |
Fair value measurements | Fair value measurements Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at a measurement date. We classify fair value measurements based on the lowest of the following levels that is significant to the measurement: • Level 1 — Quoted prices in active markets for identical assets or liabilities • Level 2 — Inputs that are observable for the asset or liability, either directly or indirectly through market corroboration, for substantially the full term of the asset or liability • Level 3 — Inputs that are unobservable for the asset or liability based on our evaluation of the assumptions market participants would use in pricing the asset or liability We exercise considerable judgment when estimating fair value, particularly when evaluating what assumptions market participants would likely make. The use of different assumptions or estimation methodologies could have a material effect on the estimated fair values. |
Foreign currency translation | Foreign currency translation Our operations span the globe, so we are impacted by changes in foreign currency exchange rates. We determine the functional currency of our subsidiaries based upon the primary currency used to generate and expend cash, which is usually the currency of the country in which the subsidiary is located. For subsidiaries with functional currencies other than the U.S. dollar, assets and liabilities are translated into U.S. dollars using period-end exchange rates, and revenues, expenses, income and losses of our subsidiaries are translated into U.S. dollars using monthly average exchange rates. The resulting foreign currency translation gains or losses are deferred as AOCI and reclassified to earnings only upon sale or liquidation of those businesses. Gains and losses related to the remeasurement of debt and intercompany financing into functional currencies are reported in earnings as other income or expense, net. Gains and losses associated with the remeasurement of operating assets and liabilities into functional currencies are reported within the applicable component of operating income. |
Leases | Leases We primarily enter into real estate leases for manufacturing, warehousing and commercial office space to support our global operations. We also enter into vehicle and equipment leases to support those operations. We determine if an arrangement is a lease at inception. Short-term leases, defined as having an initial term of twelve months or less, are expensed as incurred and not recorded on the balance sheet. We record the value of all other leased property and the related obligations as assets and liabilities on the balance sheet. Information about the amount and classification of lease assets and liabilities is included in note 23. At inception, lease assets and liabilities are measured at the present value of future lease payments over the lease term. As most of our leases do not provide an implicit rate, we exercise judgment in selecting the incremental borrowing rate based on the information available at inception to determine the present value of future payments. Operating lease assets are further adjusted for lease incentives and initial direct costs. Our lease terms may include options to extend or terminate the lease. We exercise judgment to calculate the term of those leases when extension or termination options are present and include such options in the calculation of the lease term when it is reasonably certain that we will exercise those options. Operating lease expense is recognized on a straight-line basis over the lease term, except for variable rent which is expensed as incurred. Short-term lease and variable rent expense was immaterial to the financial statements and has been included within operating lease expense. Finance lease expense includes depreciation, which is recognized on a straight-line basis over the expected life of the leased asset and interest expense. Some of our lease agreements include both lease and non-lease components. We account for those components separately for real estate leases and as a combined single lease component for all other types of leases. |
Business combinations | Business combinations We account for business acquisitions under the accounting standards for business combinations. The results of each acquisition are included in our consolidated results as of the acquisition date and the purchase price of an acquisition is allocated to tangible and intangible assets and assumed liabilities based on their estimated fair values. Any excess of the fair value consideration transferred over the estimated fair values of the net assets acquired is recognized as goodwill. Any purchase price that is considered contingent consideration is measured at its estimated fair value at the acquisition date. Contingent consideration is remeasured at the end of each reporting period, with changes in estimated fair value being recorded through SG&A expense within our statement of operations. |
New accounting standards | New accounting standards New credit losses standard In June 2016, the FASB issued a new standard that modifies the recognition of credit losses related to financial assets. Under the new standard, an entity must measure and record its total expected credit losses, rather than recording such losses when it is probable that they have occurred, as was required under the previous standard. We adopted the new guidance on January 1, 2020 using a modified retrospective approach applied to our portfolio of trade receivables as of that date. On the adoption date, we (i) recorded a $1.6 million cumulative effect adjustment to increase accumulated deficit, (ii) increased our allowance for credit losses to accounts receivable by $2.2 million, and (iii) recognized a $0.6 million reduction to deferred income tax liabilities. Other There were no other new accounting standards that we expect to have a material impact to our financial position or results of operations upon adoption. |
Derivatives, Methods of Accounting, Hedging Derivatives | Derivatives and hedging We use derivative instruments primarily to manage currency exchange and interest rate risks and recognize them as either assets or liabilities which are measured at fair value. • Cash flow hedges — We use interest rate derivatives to add stability to interest expense and to manage its exposure to interest rate movements. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on the derivative is recorded in AOCI and reclassified into earnings in the same period(s) during which the hedged transaction affects earnings and is presented in the same income statement line item as the earnings effect of the hedged item. • Net Investment hedges |
Business combinations (Tables)
Business combinations (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The fair value of the net assets acquired on November 1, 2021 included the following: (in millions) November 1, 2021 Inventory $ 45.7 Property, plant & equipment 4.4 Other intangible assets 664.2 Goodwill 2,169.1 Other assets and liabilities (3.3) Deferred income taxes, net (14.6) Total net assets $ 2,865.5 (in millions) June 10, 2021 Accounts receivable $ 33.7 Inventory 30.0 Property, plant & equipment 141.2 Other intangible assets 220.0 Goodwill 807.0 Other assets and liabilities (0.2) Accounts payable (21.5) Accrued expenses (37.2) Debt (20.4) Deferred income taxes, net (66.7) Total net assets $ 1,085.9 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination | The following table summarizes the fair value of intangible assets acquired on November 1, 2021 and their related weighted average amortization period: (dollars in millions) Fair value Weighted average estimated life Trademark $ 95.8 15.0 years Customer relationships 212.0 13.0 years Developed technology - Tubing 234.4 15.0 years Developed technology - Pumps 122.0 10.0 years Total $ 664.2 The following table summarizes the fair value of intangible assets acquired on June 10, 2021 and their related weighted average amortization period: (dollars in millions) Fair value Weighted average estimated life Customer relationships $ 125.0 18.0 years Developed technology 95.0 7.0 years Total $ 220.0 |
Schedule of Business Acquisitions, by Acquisition | The purchase consideration is as follows: (in millions) June 10, 2021 Cash paid at closing $ 1,084.5 Cash acquired (4.7) Net cash consideration 1,079.8 Fair value of acquisition contingent consideration 6.1 Purchase price $ 1,085.9 |
Business Acquisition, Pro Forma Information | The following unaudited pro forma combined financial information for the fiscal years ended December 31, 2021 and 2020 gives effect to the Ritter and Masterflex acquisitions as if they had occurred on January 1, 2020. The pro forma information is not necessarily indicative of the results of operations that actually would have occurred under the ownership and management of the Company. (in millions) Year ended December 31, 2021 2020 Revenue $ 7,699.2 $ 6,716.5 Net income 609.3 (29.9) |
Earnings or loss per share (Tab
Earnings or loss per share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the reconciliation of basic and diluted earnings per share for the years ended December 31, 2022, 2021 and 2020: (in millions, except per share data) Year ended December 31, 2022 Year ended December 31, 2021 Year ended December 31, 2020 Earnings (numerator) Weighted average shares outstanding (denominator) Earnings per share Earnings (numerator) Weighted average shares outstanding (denominator) Earnings per share Earnings (numerator) Weighted average shares outstanding (denominator) Earnings per share Basic $ 662.3 650.9 $ 1.02 $ 508.0 590.5 $ 0.86 $ 52.0 576.3 $ 0.09 Dilutive effect of stock-based awards — 5.6 — 9.1 — 7.1 Dilutive impact of MCPS 24.2 22.9 — — — — Diluted $ 686.5 679.4 $ 1.01 $ 508.0 599.6 $ 0.85 $ 52.0 583.4 $ 0.09 |
Segment financial information (
Segment financial information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Segment Reporting [Abstract] | |
Schedule of segment financial information | The following tables present information by reportable segment: (in millions) Net sales Year ended December 31, Adjusted EBITDA Year ended December 31, 2022 2021 2020 2022 2021 2020 Americas $ 4,471.2 $ 4,237.4 $ 3,731.5 $ 1,077.3 $ 978.4 $ 802.4 Europe 2,516.5 2,677.3 2,286.7 524.1 538.5 397.8 AMEA 524.7 471.4 375.4 141.5 113.9 79.8 Corporate — — — (172.2) (172.2) (138.4) Total $ 7,512.4 $ 7,386.1 $ 6,393.6 $ 1,570.7 $ 1,458.6 $ 1,141.6 (in millions) Capital expenditures Year ended December 31, Depreciation and amortization Year ended December 31, 2022 2021 2020 2022 2021 2020 Americas $ 88.6 $ 75.0 $ 36.0 $ 260.8 $ 232.3 $ 245.8 Europe 38.9 33.3 22.2 139.2 140.9 139.8 AMEA 5.9 2.8 3.4 5.5 6.0 9.8 Total $ 133.4 $ 111.1 $ 61.6 $ 405.5 $ 379.2 $ 395.4 |
Reconciliation of segment profitability from consolidated earnings | The following table presents the reconciliation of Adjusted EBITDA from net income: (in millions) Year ended December 31, 2022 2021 2020 Net income $ 686.5 $ 572.6 $ 116.6 Interest expense 265.8 217.4 307.6 Income tax expense (benefit) 164.6 180.4 (54.3) Depreciation and amortization 405.5 379.2 395.4 Loss on extinguishment of debt 12.5 12.4 346.8 Net foreign currency loss (gain) from financing activities 7.0 1.3 (0.7) Other stock-based compensation (benefit) expense (3.3) 3.0 1.3 Acquisition-related expenses 1 — 77.8 — Integration-related expenses 2 19.2 15.9 17.1 Purchase accounting adjustments 3 9.4 6.3 — Restructuring and severance charges 4 3.5 5.3 11.8 Receipt of disgorgement penalty 5 — (13.0) — Adjusted EBITDA $ 1,570.7 $ 1,458.6 $ 1,141.6 |
Schedule of net sales by product line | The following table presents net sales by product line: (in millions) Year ended December 31, 2022 2021 2020 Proprietary materials & consumables $ 2,898.4 $ 2,548.2 $ 2,043.6 Third party materials & consumables 2,704.1 2,906.3 2,671.8 Services & specialty procurement 921.0 922.6 817.5 Equipment & instrumentation 988.9 1,009.0 860.7 Total $ 7,512.4 $ 7,386.1 $ 6,393.6 |
Schedule of information by geographic area | The following table presents information by geographic area: (in millions) Net sales Year ended December 31, Property, plant and equipment, net Year ended December 31, 2022 2021 2020 2022 2021 United States $ 4,278.1 $ 3,931.7 $ 3,493.7 $ 417.0 $ 383.7 Germany 478.7 561.7 511.4 152.1 158.5 Other countries in Europe 2,037.8 2,115.6 1,775.3 103.3 107.1 All other countries 717.8 777.1 613.2 54.6 56.2 Total $ 7,512.4 $ 7,386.1 $ 6,393.6 $ 727.0 $ 705.5 |
Supplemental disclosures of c_2
Supplemental disclosures of cash flow information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Elements [Abstract] | |
Schedule of supplemental disclosures of cash flow information | The following tables present supplemental disclosures of cash flow information: (in millions) December 31, 2022 2021 Cash and cash equivalents $ 372.9 $ 301.7 Restricted cash classified as other assets 24.0 25.4 Total $ 396.9 $ 327.1 (in millions) Year ended December 31, 2022 2021 2020 Cash flows from operating activities: Cash paid for income taxes, net $ 256.9 $ 144.7 $ 42.7 Cash paid for interest, net, excluding financing leases 242.2 187.0 317.8 Cash paid for interest on finance leases 5.1 5.1 5.3 Cash paid under operating leases 42.9 43.6 42.3 Cash flows from financing activities: Cash paid under finance leases 4.6 4.7 4.3 At December 31, 2022, $349.4 million or 94% of our cash and cash equivalents was held by our non-U.S. subsidiaries and may be subject to certain taxes upon repatriation, primarily where foreign withholding taxes apply. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Schedule of inventory components | The following table presents components of inventory: (dollars in millions) December 31, 2022 2021 Merchandise inventory $ 556.1 $ 562.9 Finished goods 117.1 102.6 Raw materials 181.2 156.1 Work in process 59.1 50.4 Total $ 913.5 $ 872.0 Inventory under the LIFO method: Percentage of total inventory 26 % 23 % Excess of current cost over carrying value $ 34.1 $ 24.9 |
Property, plant and equipment (
Property, plant and equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of property, plant and equipment | The following table presents the components of property, plant and equipment: (in millions) December 31, 2022 2021 Buildings and related improvements $ 393.8 $ 384.3 Machinery, equipment and other 522.2 479.5 Software 130.2 122.3 Land 57.8 67.7 Assets not yet placed into service 141.4 96.9 Property, plant and equipment, gross 1,245.4 1,150.7 Accumulated depreciation (518.4) (445.2) Property, plant and equipment, net $ 727.0 $ 705.5 |
Goodwill and other intangible_2
Goodwill and other intangible assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in goodwill | The following tables present changes in goodwill by segment: (in millions) December 31, 2022 Americas Europe AMEA Total Beginning balance, net $ 3,411.4 $ 1,897.9 $ 31.8 $ 5,341.1 Currency translation (7.7) (111.1) (1.5) (120.3) Additions 427.1 0.6 4.1 431.8 Ending balance, net 3,830.8 1,787.4 34.4 5,652.6 Accumulated impairment losses 21.0 6.7 11.1 38.8 Ending balance, gross $ 3,851.8 $ 1,794.1 $ 45.5 $ 5,691.4 (in millions) December 31, 2021 Americas Europe AMEA Total Beginning balance, net $ 1,611.6 $ 1,218.5 $ 30.1 $ 2,860.2 Currency translation 0.8 (127.6) (0.4) (127.2) Additions 1,799.0 807.0 2.1 2,608.1 Ending balance, net 3,411.4 1,897.9 31.8 5,341.1 Accumulated impairment losses 21.0 6.7 11.1 38.8 Ending balance, gross $ 3,432.4 $ 1,904.6 $ 42.9 $ 5,379.9 |
Schedule of components of other intangible assets | The following table presents the components of other intangible assets: (in millions) December 31, 2022 December 31, 2021 Gross value Accumulated amortization Carrying value Gross value Accumulated amortization Carrying value Customer relationships $ 4,806.4 $ 1,333.5 $ 3,472.9 $ 5,474.2 $ 1,121.6 $ 4,352.6 Trade names 354.4 205.1 149.3 505.1 194.1 311.0 Other 630.9 212.1 418.8 541.5 157.1 384.4 Total finite-lived $ 5,791.7 $ 1,750.7 4,041.0 $ 6,520.8 $ 1,472.8 5,048.0 Indefinite-lived 92.3 92.3 Total $ 4,133.3 $ 5,140.3 |
Schedule of estimated future amortization | The following table presents estimated future amortization: (in millions) December 31, 2022 2023 $ 313.1 2024 313.1 2025 311.9 2026 310.5 2027 309.0 Thereafter 2,483.4 Total $ 4,041.0 |
Restructuring and severance (Ta
Restructuring and severance (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of restructuring and severance charges | The following table presents restructuring and severance expenses by plan: (in millions) Year ended December 31, 2022 2021 2020 2017 restructuring program $ — $ — $ 11.0 Other 3.5 5.3 0.8 Total $ 3.5 $ 5.3 $ 11.8 |
2017 restructuring program | |
Restructuring Cost and Reserve [Line Items] | |
Schedule of restructuring and severance charges | The following table presents information about expenses under the 2017 restructuring program for the periods covered under this report in which the plan was active: (in millions) Year ended December 31, Expenses incurred 2020 Employee severance and related $ 10.7 $ 88.6 Facility closure 0.3 2.4 Other — 38.8 Total $ 11.0 $ 129.8 Americas $ 1.1 $ 53.8 Europe 9.9 60.3 AMEA — 0.8 Corporate — 14.9 Total $ 11.0 $ 129.8 |
Schedule of changes to accrued restructuring charges | The following table presents changes to accrued employee severance and related expenses under the 2017 restructuring program, which are primarily classified as employee-related current liabilities: (in millions) Year ended December 31, 2022 2021 2020 Beginning balance $ 4.1 $ 12.4 $ 15.8 Expenses — — 10.7 Cash payments (2.9) (7.6) (15.1) Currency translation — (0.7) 1.0 Ending balance $ 1.2 $ 4.1 $ 12.4 |
Debt (Tables)
Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of information about debt | The following table presents information about our debt: (dollars in millions) December 31, 2022 December 31, 2021 Interest terms Rate Amount Receivables facility SOFR 1 plus 0.80% 5.26 % $ 327.2 $ — Senior secured credit facilities: Euro term loans B-3 EURIBOR plus —% — % — 133.9 Euro term loans B-4 EURIBOR plus 2.50% 3.99 % 636.7 684.9 Euro term loans B-5 EURIBOR plus 2.00% 3.49 % 342.0 367.9 U.S. dollar term loans B-4 LIBOR plus —% — % — 229.3 U.S. dollar term loans B-5 LIBOR plus 2.25% 6.32 % 1,488.3 2,063.9 2.625% secured notes fixed rate 2.625 % 694.5 739.6 3.875% unsecured notes fixed rate 3.875 % 800.0 800.0 3.875% unsecured notes fixed rate 3.875 % 427.3 455.1 4.625 % unsecured notes fixed rate 4.625 % 1,550.0 1,550.0 Finance lease liabilities 68.9 71.2 Other 14.2 17.4 Total debt, gross 6,349.1 7,113.2 Less: unamortized deferred financing costs (61.6) (90.0) Total debt $ 6,287.5 $ 7,023.2 Classification on balance sheets: Current portion of debt $ 364.2 $ 45.2 Debt, net of current portion 5,923.3 6,978.0 ━━━━━━━━━ 1. SOFR includes credit spread adjustment. . |
Schedule of mandatory future repayments of debt principal | The following table presents mandatory future repayments of debt principal: (in millions) December 31, 2022 2023 $ 364.2 2024 37.3 2025 731.3 2026 364.4 2027 1,417.4 Thereafter 3,434.5 Total debt, gross $ 6,349.1 |
Schedule of availability under credit facilities | The following table presents availability under our credit facilities: (in millions) December 31, 2022 Receivables facility Revolving credit facility Total Capacity $ 357.7 $ 515.0 $ 872.7 Undrawn letters of credit outstanding (13.7) — (13.7) Outstanding borrowings (327.2) — (327.2) Unused availability $ 16.8 $ 515.0 $ 531.8 |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Avantor, Inc. following the IPO | |
Class of Stock [Line Items] | |
Schedule of equity capitalization | The following table presents the equity capitalization of Avantor, Inc.: (shares in millions) Par value per share Shares authorized Undesignated preferred stock $ 0.01 75.0 Common stock 0.01 750.0 |
Accumulated other comprehensi_2
Accumulated other comprehensive income or loss (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of changes in components of AOCI | The following table presents changes in the components of AOCI: (in millions) Foreign currency translation Derivative instruments Defined benefit plans Total Balance on December 31, 2019 $ (62.3) $ (0.5) $ (23.1) $ (85.9) Unrealized gain (loss) 106.4 1.0 (8.3) 99.1 Reclassification of (gain) loss into earnings — (1.7) 0.6 (1.1) Change due to income taxes 7.7 0.2 1.7 9.6 Balance on December 31, 2020 51.8 (1.0) (29.1) 21.7 Unrealized (loss) gain (62.8) (1.6) 7.9 (56.5) Reclassification of loss into earnings — 3.5 0.1 3.6 Change due to income taxes (8.2) (0.5) (3.3) (12.0) Balance on December 31, 2021 (19.2) 0.4 (24.4) (43.2) Unrealized (loss) gain (102.0) 33.1 47.9 (21.0) Reclassification of gain into earnings — (7.4) (1.0) (8.4) Change due to income taxes (10.1) (6.2) (11.4) (27.7) Balance on December 31, 2022 $ (131.3) $ 19.9 $ 11.1 $ (100.3) |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of changes in benefit obligations and plan assets and funded status | The following table presents changes in benefit obligations and plan assets and the funded status of our plans: (in millions) U.S. pension plans Year ended December 31, Non-U.S. pension plans Year ended December 31, U.S. medical plan Year ended December 31, 2022 2021 2022 2021 2022 2021 Benefit obligation: Beginning balance $ 230.1 $ 246.0 $ 291.6 $ 301.4 $ 14.9 $ 15.3 Service cost 3.4 3.6 4.1 5.5 0.1 0.2 Interest cost 5.3 4.4 3.3 2.6 0.3 0.3 Employee contributions — — 1.2 1.2 — — Actuarial gain (54.4) (7.6) (92.6) (1.7) (4.7) (0.5) Benefits paid (15.7) (16.3) (5.6) (3.3) (0.4) (0.4) Settlements and curtailments — — (1.5) (1.7) — — Currency translation — — (21.1) (11.1) — — Other — — (0.1) (1.3) — — Ending balance 168.7 230.1 179.3 291.6 10.2 14.9 Fair value of plan assets: Beginning balance 268.9 286.6 182.8 167.5 — — (Loss) return on plan assets (42.5) (2.1) (49.4) 16.9 — — Employer contributions 0.7 0.7 5.6 5.2 0.4 0.4 Employee contributions — — 1.2 1.2 — — Benefits paid (15.7) (16.3) (5.6) (3.3) (0.4) (0.4) Settlements and curtailments — — (1.5) (1.7) — — Currency translation — — (14.7) (3.0) — — Other — — 0.2 — — — Ending balance 211.4 268.9 118.6 182.8 — — Funded status at end of year $ 42.7 $ 38.8 $ (60.7) $ (108.8) $ (10.2) $ (14.9) |
Schedule of other balance sheet information | The following table presents other balance sheet information for defined benefit plans: (in millions) U.S. pension plans December 31, Non-U.S. pension plans December 31, U.S. medical plan December 31, 2022 2021 2022 2021 2022 2021 Accumulated benefit obligation $ 164.0 $ 222.1 $ 176.5 $ 277.5 $ 10.0 $ 14.7 Amounts recorded in balance sheet: Other assets $ 47.8 $ 49.2 $ 4.3 $ 2.9 $ — $ — Other current liabilities (0.7) (0.7) (2.8) (2.9) (0.8) (0.8) Other liabilities (4.4) (9.7) (62.2) (108.8) (9.4) (14.1) Funded status $ 42.7 $ 38.8 $ (60.7) $ (108.8) $ (10.2) $ (14.9) Components of AOCI, excluding tax effects: Actuarial (loss) gain $ (16.1) $ (16.4) $ 21.0 $ (20.9) $ 10.8 $ 6.8 Prior service gain — — 1.2 1.0 — 0.2 |
Schedule of assumptions used | The following table presents the assumptions used to determine the benefit obligation: U.S. pension plans Non-U.S. pension plans U.S. medical plan 2022 2021 2022 2021 2022 2021 Discount rate 5.4 % 2.8 % 4.1 % 1.3 % 5.4 % 2.8 % Annual rate of salary increase 3.5 % 2.5 % 1.9 % 1.8 % — — Health care cost trends: Initial rate n/a n/a n/a n/a 5.9 % 5.4 % Ultimate rate n/a n/a n/a n/a 4.0 % 4.0 % Year ultimate rate is reached n/a n/a n/a n/a 2046 2046 |
Schedule of future benefits expected to be paid | The following table presents future benefits expected to be paid: (in millions) December 31, 2022 U.S. pension plans Non-U.S. pension plans U.S. medical plan 2023 $ 12.7 $ 8.0 $ 0.7 2024 12.8 7.7 0.8 2025 13.2 8.2 0.8 2026 13.2 8.9 0.8 2027 13.2 9.3 0.8 2028 – 2032 65.2 56.4 4.3 |
Schedule of allocation of plan assets | The following table presents the allocation of plan assets: (in millions) December 31, 2022 December 31, 2021 Total Level 1 Level 2 Level 3 NAV 1 Total Level 1 Level 2 Level 3 NAV 1 U.S. plans: Cash $ 5.2 $ 5.2 $ — $ — $ — $ 4.2 $ 4.2 $ — $ — $ — Fixed income 164.5 — 164.5 — — 211.7 — 211.7 — — Equity 41.7 — 41.7 — — 53.0 — 53.0 — — Total $ 211.4 $ 5.2 $ 206.2 $ — $ — $ 268.9 $ 4.2 $ 264.7 $ — $ — Non-U.S. plans: Cash $ 0.7 $ 0.7 $ — $ — $ — $ 1.4 $ 1.4 $ — $ — $ — Fixed income 46.1 — 46.1 — — 93.3 — 93.3 — — Equity 8.9 — 8.9 — — 19.6 — 19.6 — — Other 19.5 — 6.3 — 13.2 27.1 — 12.9 — 14.2 Insurance contracts 43.4 — — 43.4 — 41.4 — — 41.4 — Total $ 118.6 $ 0.7 $ 61.3 $ 43.4 $ 13.2 $ 182.8 $ 1.4 $ 125.8 $ 41.4 $ 14.2 ━━━━━━━━━ 1. Investments are measured at fair value using the net asset value per share practical expedient, and therefore, are not classified in the fair value hierarchy. |
Schedule of changes to plan assets measured using unobservable inputs | The following table presents changes to plan assets of non-U.S. plans that were measured using unobservable inputs: (in millions) Year ended December 31, 2022 2021 Beginning balance $ 41.4 $ 38.3 Purchases 4.1 9.1 Actual returns 0.5 0.5 Settlements (1.5) (4.8) Currency translation (1.1) (1.7) Ending balance $ 43.4 $ 41.4 |
Stock-based compensation (Table
Stock-based compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of components of stock-based compensation expense | The following table presents components of stock-based compensation expense: (in millions) Classification Year ended December 31, 2022 2021 2020 Stock options Equity $ 16.0 $ 18.8 $ 16.9 RSUs Equity 31.7 26.8 23.8 Optionholder awards Liability — — 0.6 Other Both (1.9) 5.1 2.8 Total $ 45.8 $ 50.7 $ 44.1 Award classification: Equity $ 49.1 $ 47.7 $ 42.2 Liability (3.3) 3.0 1.9 |
Schedule of information about outstanding stock options | The following table presents information about outstanding stock options: (options and intrinsic value in millions) Number of options Weighted average exercise price per option Aggregate intrinsic value Weighted average remaining term Balance on December 31, 2021 16.3 $ 19.83 Granted 1.3 31.52 Exercised (0.7) 16.92 Forfeited (0.8) 20.22 Balance on December 31, 2022 16.1 $ 20.90 $ 41.2 6.1 years Expected to vest 4.6 23.35 10.0 7.9 years Vested 11.5 19.93 31.2 5.4 years |
Schedule of weighted-average information about stock options granted | The following table presents weighted-average information about stock options granted: Year ended December 31, 2022 2021 2020 Grant date fair value per option $ 11.09 $ 8.63 $ 5.43 Assumptions used to determine grant date fair value: Expected stock price volatility 31 % 29 % 28 % Risk free interest rate 2.2 % 1.1 % 1.4 % Expected dividend rate nil nil nil Expected life of options 6.3 years 6.3 years 6.2 years |
Schedule of other information about stock options | The following table presents other information about stock options: (in millions) Year ended December 31, 2022 2021 2020 Fair value of options vested $ 15.4 $ 17.2 $ 12.0 Intrinsic value of options exercised 10.1 74.9 100.8 |
Schedule of information about unvested RSUs | The following table presents information about unvested RSUs: (awards in millions) Number of awards Weighted average grant date fair value per award Balance on December 31, 2021 4.4 $ 19.52 Granted 1.1 33.02 Vested (1.1) 18.95 Forfeited (0.2) 26.73 Balance on December 31, 2022 4.2 $ 24.29 |
Other income or expense, net (T
Other income or expense, net (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of components of other income or expense, net | The following table presents the components of other income or expense, net: (in millions) Year ended December 31, 2022 2021 2020 Net foreign currency (loss) gain from financing activities $ (7.0) $ (1.3) $ 0.7 Income related to defined benefit plans 6.0 10.4 8.8 Other 0.2 1.5 0.4 Other (expense) income, net $ (0.8) $ 10.6 $ 9.9 |
Income taxes (Tables)
Income taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of detail about captions appearing on the statements of operations | The following table presents detail about captions appearing on the statements of operations: (in millions) Year ended December 31, 2022 2021 2020 Income (loss) before income taxes: United States $ 618.0 $ 555.0 $ (2.6) Foreign 233.1 198.0 64.9 Total $ 851.1 $ 753.0 $ 62.3 Current income tax (expense) benefit: Federal $ (119.9) $ (74.0) $ 30.4 State (32.2) (32.3) (4.8) Foreign (81.6) (91.8) (58.8) Subtotal (233.7) (198.1) (33.2) Deferred income tax (expense) benefit: Federal 18.0 (11.6) 28.0 State 4.4 (1.9) 14.4 Foreign 46.7 31.2 45.1 Subtotal 69.1 17.7 87.5 Income tax (expense) benefit $ (164.6) $ (180.4) $ 54.3 |
Schedule of federal corporate rate reconciled to income tax provision | The following table reconciles the income tax provision calculated at the United States federal corporate rate to the amounts presented in the statements of operations: (in millions) Year ended December 31, 2022 2021 2020 Income before income taxes $ 851.1 $ 753.0 $ 62.3 United States federal corporate rate 21 % 21 % 21 % Income tax expense at federal corporate rate (178.7) (158.2) (13.1) State income taxes, net of federal benefit (23.3) (27.0) 7.6 Rate changes related to foreign jurisdictions 1.3 (9.7) (4.0) Stock-based compensation 3.5 14.5 10.1 Foreign taxes 12.8 1.4 5.7 Valuation allowance 4.8 4.1 (1.1) Changes to uncertain tax positions 1.1 (10.7) 40.8 Foreign-derived intangible income 12.1 8.2 6.9 Transaction costs — (2.1) — Other, net 1.8 (0.9) 1.4 Income tax (expense) benefit $ (164.6) $ (180.4) $ 54.3 |
Schedule of components of deferred tax assets and liabilities | Deferred taxes The following table presents the components of deferred tax assets and liabilities: (in millions) December 31, 2022 2021 Deferred tax assets: Reserves and accrued expenses $ 61.7 $ 51.6 Pension, postretirement and environmental liabilities 1.1 14.7 Net operating loss and research and development carryforwards 325.7 312.4 Other 6.1 10.2 Deferred tax assets, gross 394.6 388.9 Less: valuation allowances (179.7) (187.6) Deferred tax assets, net 214.9 201.3 Deferred tax liabilities: Intangibles (810.4) (892.8) Property, plant and equipment (51.3) (52.0) Investment in partnerships (44.1) (148.0) Deferred tax liabilities (905.8) (1,092.8) Net deferred tax liability $ (690.9) $ (891.5) Classification on balance sheets: Other assets $ 40.5 $ 21.5 Deferred income tax liabilities (731.4) (913.0) |
Schedule of changes to the reserve for uncertain tax positions | The following table reflects changes to the reserve for uncertain tax positions, excluding accrued interest and penalties: (in millions) Year ended December 31, 2022 2021 2020 Beginning balance $ 55.3 $ 46.7 $ 83.6 Additions: Tax positions related to the current year 1.2 5.1 3.4 Tax positions related to prior years — 7.3 3.6 Reductions: Tax positions related to prior years — — (0.1) Settlements with taxing authorities (0.1) (0.9) (43.1) Lapse of statutes of limitations (2.4) (1.6) (1.8) Currency translation (2.2) (1.3) 1.1 Ending balance $ 51.8 $ 55.3 $ 46.7 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amounts of Outstanding Derivative Positions | As of December 31, 2022, the Company had the following outstanding interest rate derivatives that were designated as cash flow hedges of interest rate risk: (dollars in millions) Interest rate derivative Number of instruments Notional Interest rate swaps 1 $ 750.0 As of December 31, 2022, we had the following outstanding foreign currency derivatives that were used to hedge its net investments in foreign operations: (value in millions) Foreign currency derivative Number of instruments Notional sold Notional purchased Cross-currency swaps 1 € 732.1 € 750.0 |
Schedule of Cash Flow Hedges Included in Accumulated Other Comprehensive Income (Loss) | The table below presents the effect of cash flow hedge accounting on AOCI for the years ended December 31, 2022 and 2021. (in millions) Hedging relationships Amount of gain or (loss) recognized in OCI on Derivative Location of gain or (loss) reclassified from AOCI into income Amount of gain or (loss) reclassified from AOCI into income Year ended December 31, Year ended December 31, 2022 2021 2022 2021 Interest rate products 24.3 — Interest expense (1.9) — Total $ 24.3 $ — $ (1.9) $ — |
Derivative Instruments, Gain (Loss) | The table below presents the effect of our derivative financial instruments on the statement of operations for the years ended December 31, 2022 and 2021. Year ended December 31, 2022 2021 (in millions) Interest income (expense) Interest income (expense) Total amounts of line items presented in the statements of operations where the effects of cash flow hedges are recorded $ (265.8) $ — Amount of loss reclassified from AOCI into income $ (1.9) $ — |
Schedule of Net Investment Hedges in Accumulated Other Comprehensive Income (Loss) | The table below presents the effect of our net investment hedges on AOCI and the statement of operations for the years ended December 31, 2022 and 2021. (in millions) Hedging relationships Amount of gain or (loss) recognized in OCI on Derivative Location of gain or (loss) recognized in income on Derivative (amount excluded from effectiveness testing) Amount of gain or (loss) recognized in income on Derivative (amount excluded from effectiveness testing) Year ended December 31, Year ended December 31, 2022 2021 2022 2021 Cross currency swaps $ 30.6 $ — Interest income $ 9.7 $ — Total $ 30.6 $ — $ 9.7 $ — |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | The table below presents the fair value of our derivative financial instruments as well as their classification on the Balance Sheet as of December 31, 2022 and 2021.: Asset derivatives Liability derivatives December 31, December 31, 2022 2021 2022 2021 (in millions) Balance sheet location Fair value Balance sheet location Fair value Balance sheet location Fair value Balance sheet location Fair value Derivatives designated as hedging instruments: Interest rate products Other current assets $ 26.2 Other current assets $ — Other current liabilities $ — Other current liabilities $ — Foreign exchange products Other current assets — Other current assets — Other current liabilities (21.4) Other current liabilities — Total $ 26.2 $ — $ (21.4) $ — |
Schedule of Net Investment Hedges, Statements of Financial Performance and Financial Position, Location | The amount of (gain) loss related to the foreign currency denominated debt designated as net investment hedges classified in the foreign currency translation adjustment component of other comprehensive income is presented below: (in millions) Year ended December 31, 2022 2021 2020 Net investment hedges $ (27.8) $ (34.1) $ 37.6 |
Financial instruments and fai_2
Financial instruments and fair value measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of gross amounts and fair values of debt instruments | The following table presents the gross amounts, which exclude unamortized deferred financing costs, and the fair values of debt instruments: (in millions) December 31, 2022 December 31, 2021 Gross amount Fair value Gross amount Fair value Receivables facility $ 327.2 $ 327.2 $ — $ — Senior secured credit facilities: Euro term loans B-3 — — 133.9 133.7 Euro term loans B-4 636.7 627.5 684.9 683.6 Euro term loans B-5 342.0 340.7 367.9 367.7 U.S. dollar term loans B-4 — — 229.3 224.9 U.S. dollar term loans B-5 1,488.3 1,485.5 2,063.9 2,029.1 2.625% secured notes 694.5 658.5 739.6 758.2 3.875% unsecured notes 800.0 672.0 800.0 810.9 3.875% unsecured notes 427.3 396.5 455.1 475.3 4.625 % unsecured notes 1,550.0 1,407.6 1,550.0 1,629.8 Finance lease liabilities 68.9 68.9 71.2 71.2 Other 14.2 14.2 17.4 17.4 Total $ 6,349.1 $ 5,998.6 $ 7,113.2 $ 7,201.8 The fair values of debt instruments are based on standard pricing models that take into account the present value of future cash flows, and in some cases private trading data, which are level 2 measurements. |
Schedule of changes to contingent consideration liabilities | The following table presents changes to contingent consideration liabilities: (in millions) Year ended December 31, 2022 2021 Beginning balance $ 5.7 $ — Acquisitions — 6.1 Changes to estimated fair value (4.4) — Cash payments — — Currency translation (0.1) (0.4) Ending balance $ 1.2 $ 5.7 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of lease assets and liabilities | The following table presents lease assets and liabilities and their balance sheet classification: (in millions) Classification December 31, 2022 2021 Operating leases: Lease assets Other assets $ 118.7 $ 107.8 Current portion of liabilities Other current liabilities 35.6 34.1 Liabilities, net of current portion Other liabilities 86.6 78.6 Finance leases: Lease assets Property, plant and equipment, net 55.3 59.9 Current portion of liabilities Current portion of debt 4.3 4.2 Liabilities, net of current portion Debt, net of current portion 64.7 67.0 |
Schedule of information about lease expense | The following tables present information about lease expense: (in millions) Year ended December 31, 2022 2021 2020 (1,2) (1,2) (1,2) Operating lease expense $ 48.5 $ 48.2 $ 52.0 Finance lease expense 10.7 11.1 11.3 Total $ 59.2 $ 59.3 $ 63.3 (1) Operating lease expense for 2022 and 2021 includes $7.9 million and $7.3 million, respectively, classified as cost of sales and $40.6 million and $40.9 million classified as SG&A expenses, respectively. (2) Finance lease expense consists primarily of amortization of finance lease assets that is classified as SG&A expenses. December 31, 2022 2021 Weighted average remaining lease term: Operating leases 6.3 years 5.0 years Finance leases 12.7 years 13.5 years Weighted average discount rate: Operating leases 3.9 % 4.4 % Finance leases 7.8 % 7.9 % |
Schedule of future payments due under operating leases | The following table presents future payments due under leases reconciled to lease liabilities: (in millions) December 31, 2022 Operating leases Finance leases 2023 $ 39.1 $ 9.3 2024 31.9 9.2 2025 19.5 8.5 2026 12.5 7.8 2027 6.5 7.8 Thereafter 26.6 73.3 Total undiscounted lease payments 136.1 115.9 Difference between undiscounted and discounted lease payments (13.9) (46.9) Lease liabilities $ 122.2 $ 69.0 |
Schedule of future payments due under finance leases | The following table presents future payments due under leases reconciled to lease liabilities: (in millions) December 31, 2022 Operating leases Finance leases 2023 $ 39.1 $ 9.3 2024 31.9 9.2 2025 19.5 8.5 2026 12.5 7.8 2027 6.5 7.8 Thereafter 26.6 73.3 Total undiscounted lease payments 136.1 115.9 Difference between undiscounted and discounted lease payments (13.9) (46.9) Lease liabilities $ 122.2 $ 69.0 |
Condensed unconsolidated fina_2
Condensed unconsolidated financial information of Avantor, Inc. (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed unconsolidated balance sheets | Avantor, Inc. Condensed unconsolidated balance sheets (in millions) December 31, 2022 2021 Assets Investment in unconsolidated subsidiaries $ 4,855.4 $ 4,197.0 Total assets $ 4,855.4 $ 4,197.0 Stockholders’ equity MCPS including paid-in capital, 0.0 and 20.7 shares outstanding $ — $ 1,003.7 Common stock including paid-in capital, 674.3 and 609.7 shares outstanding 3,785.3 2,752.6 Accumulated earnings 1,170.4 483.9 Accumulated other comprehensive loss (100.3) (43.2) Total stockholders’ equity $ 4,855.4 $ 4,197.0 |
Condensed unconsolidated statements of cash flows | Avantor, Inc. Condensed unconsolidated statements of cash flows (in millions) Year ended December 31, 2022 Year ended December 31, 2021 Year ended December 31, 2020 Cash flows from investing activities: Contribution from (to) unconsolidated subsidiaries $ 28.3 $ (967.3) $ — Net cash provided by (used in) investing activities 28.3 (967.3) — Cash flows from financing activities: Proceeds from issuance of stock, net of issuance costs — 967.0 — Payments of dividends on preferred stock (32.4) (64.6) (64.6) Contribution from unconsolidated subsidiaries — — 44.4 Proceeds received from exercise of stock options, net of shares repurchased to satisfy employee tax obligations for vested stock-based awards 4.1 64.9 20.2 Net cash (used in) provided by financing activities (28.3) 967.3 — Net change in cash and cash equivalents — — — Cash, cash equivalents and restricted cash, beginning of year — — — Cash, cash equivalents and restricted cash, end of year $ — $ — $ — |
Valuation and qualifying acco_2
Valuation and qualifying accounts (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Schedule of valuation and qualifying accounts | The following table presents changes to our valuation and qualifying accounts: (in millions) Allowance for expected credit losses Valuation allowances on deferred tax assets Balance on December 31, 2019 $ 18.6 $ 193.9 Cumulative effect of adopting new accounting standard 2.2 — Charged to costs and expenses 10.2 2.4 Deductions (1) (4.1) — Currency translation (0.7) 13.6 Balance on December 31, 2020 26.2 209.9 Charged to costs and expenses 3.6 (9.4) Deductions (1) (2.6) — Currency translation (0.8) (12.9) Balance on December 31, 2021 26.4 187.6 Charged to costs and expenses 6.9 2.7 Deductions (1) (3.7) — Currency translation (1.4) (10.6) Balance on December 31, 2022 $ 28.2 $ 179.7 (1) For the allowance for expected credit losses, deductions represent bad debts charged off, net of recoveries, and other additions represent recoveries, net of bad debts charged off. |
Nature of operations and pres_2
Nature of operations and presentation of financial statements (Details) shares in Millions | 1 Months Ended |
May 31, 2022 $ / shares shares | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Preferred Stock, Dividend Rate, Percentage | 6.25% |
Preferred Stock, Par or Stated Value Per Share | $ / shares | $ 0.01 |
Conversion of junior convertible preferred stock (in shares) | shares | 62.9 |
Preferred Stock, Convertible, Terms | 3.0395 |
Summary of significant accoun_3
Summary of significant accounting policies (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 USD ($) segment | Dec. 31, 2021 USD ($) | |
Segment reporting | ||
Number of reportable segments | segment | 3 | |
Finite-lived intangible assets | ||
Cumulative effect of adopting new accounting standard | $ (1,170.4) | $ (483.9) |
Allowances on accounts receivable | 28.2 | 26.4 |
Deferred income tax liabilities | 731.4 | 913 |
Operating lease assets | 118.7 | $ 107.8 |
Lease liabilities | $ 122.2 | |
Customer relationships | Minimum | ||
Finite-lived intangible assets | ||
Estimated useful life | 10 years | |
Customer relationships | Maximum | ||
Finite-lived intangible assets | ||
Estimated useful life | 20 years | |
Trade names | Minimum | ||
Finite-lived intangible assets | ||
Estimated useful life | 10 years | |
Trade names | Maximum | ||
Finite-lived intangible assets | ||
Estimated useful life | 15 years | |
Other | Minimum | ||
Finite-lived intangible assets | ||
Estimated useful life | 5 years | |
Other | Maximum | ||
Finite-lived intangible assets | ||
Estimated useful life | 20 years | |
Buildings and related improvements | Minimum | ||
Property, plant and equipment | ||
Estimated useful life | 3 years | |
Buildings and related improvements | Maximum | ||
Property, plant and equipment | ||
Estimated useful life | 40 years | |
Machinery, equipment and other | Minimum | ||
Property, plant and equipment | ||
Estimated useful life | 3 years | |
Machinery, equipment and other | Maximum | ||
Property, plant and equipment | ||
Estimated useful life | 20 years | |
Software | Minimum | ||
Property, plant and equipment | ||
Estimated useful life | 3 years | |
Software | Maximum | ||
Property, plant and equipment | ||
Estimated useful life | 10 years |
New accounting standards (Detai
New accounting standards (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
New accounting standards | ||
Cumulative effect of adopting new accounting standard | $ (1,170.4) | $ (483.9) |
Deferred income tax liabilities | 731.4 | 913 |
Allowances on accounts receivable | 28.2 | 26.4 |
Operating lease assets | 118.7 | $ 107.8 |
Operating lease liabilities | 122.2 | |
Cumulative effect adjustment | New credit losses standard | ||
New accounting standards | ||
Cumulative effect of adopting new accounting standard | 1.6 | |
Deferred income tax liabilities | 0.6 | |
Allowances on accounts receivable | $ 2.2 |
Business Combinations - Narrati
Business Combinations - Narrative (Details) € in Millions | 12 Months Ended | |||||
Nov. 01, 2021 USD ($) | Jun. 10, 2021 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jun. 10, 2021 EUR (€) | |
Business acquisition | ||||||
Cash paid for acquisitions, net of cash acquired | $ 20,200,000 | $ 4,014,100,000 | $ 0 | |||
Acquisition related costs | 0 | 77,800,000 | $ 0 | |||
Masterflex | ||||||
Business acquisition | ||||||
Cash paid for acquisitions, net of cash acquired | $ 2,865,500,000 | |||||
Revenue | 227,300,000 | 40,600,000 | ||||
Finite-lived intangible assets acquired | 664,200,000 | |||||
Property, plant and equipment acquired | $ 4,400,000 | |||||
Ritter GmbH | ||||||
Business acquisition | ||||||
Cash paid for acquisitions, net of cash acquired | $ 1,079,800,000 | |||||
Fair value of acquisition contingent consideration | 6,100,000 | |||||
Contingent consideration maximum potential payout amount | € | € 300 | |||||
Revenue | 151,100,000 | $ 108,300,000 | ||||
Net assets acquired, excluding goodwill | 247,000,000 | |||||
Finite-lived intangible assets acquired | 220 | 164,700,000 | ||||
Property, plant and equipment acquired | $ 141,200,000 | $ 129,200,000 |
Business Combinations - Fair va
Business Combinations - Fair value of Net assets acquired (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Nov. 01, 2021 | Jun. 10, 2021 | Dec. 31, 2020 |
Business acquisition | |||||
Goodwill | $ 5,652.6 | $ 5,341.1 | $ 2,860.2 | ||
Masterflex | |||||
Business acquisition | |||||
Inventory | $ 45.7 | ||||
Property, plant and equipment | 4.4 | ||||
Other intangible assets | 664.2 | ||||
Goodwill | 2,169.1 | ||||
Other assets and liabilities | (3.3) | ||||
Deferred income taxes, net | (14.6) | ||||
Total net assets | $ 2,865.5 | ||||
Ritter GmbH | |||||
Business acquisition | |||||
Accounts receivable | $ 33.7 | ||||
Inventory | 30 | ||||
Property, plant and equipment | $ 129.2 | 141.2 | |||
Other intangible assets | 220 | ||||
Goodwill | 807 | ||||
Other assets and liabilities | (0.2) | ||||
Accounts payable | (21.5) | ||||
Accrued expenses | (37.2) | ||||
Debt | (20.4) | ||||
Deferred income taxes, net | (66.7) | ||||
Total net assets | $ 1,085.9 |
Business Combinations - Finite-
Business Combinations - Finite-Lived and Indefinite-Lived Intangible Assets Acquired (Details) - USD ($) | Nov. 01, 2021 | Jun. 10, 2021 | Dec. 31, 2022 |
Masterflex | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value | $ 664,200,000 | ||
Masterflex | Trademark | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value | $ 95,800,000 | ||
Weighted average estimated life | 15 years | ||
Masterflex | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value | $ 212,000,000 | ||
Weighted average estimated life | 13 years | ||
Masterflex | Developed technology - Tubing | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value | $ 234,400,000 | ||
Weighted average estimated life | 15 years | ||
Masterflex | Developed technology - Pumps | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value | $ 122,000,000 | ||
Weighted average estimated life | 10 years | ||
Ritter GmbH | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value | $ 220 | $ 164,700,000 | |
Ritter GmbH | Customer relationships | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value | $ 125 | ||
Weighted average estimated life | 18 years | ||
Ritter GmbH | Developed technology | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Fair value | $ 95 | ||
Weighted average estimated life | 7 years |
Business Combinations - Prelimi
Business Combinations - Preliminary purchase consideration (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 10, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Business acquisition | ||||
Net cash consideration | $ 20.2 | $ 4,014.1 | $ 0 | |
Ritter GmbH | ||||
Business acquisition | ||||
Cash paid at closing | $ 1,084.5 | |||
Cash acquired | (4.7) | |||
Net cash consideration | 1,079.8 | |||
Fair value of acquisition contingent consideration | 6.1 | |||
Purchase price | $ 1,085.9 |
Business Combinations and Asset
Business Combinations and Asset Acquisitions - Pro Forma Information (Details) - Ritter GmbH and Masterflex - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Business Acquisition [Line Items] | ||
Revenue | $ 7,699.2 | $ 6,716.5 |
Net income | $ 609.3 | $ (29.9) |
Earnings or loss per share - re
Earnings or loss per share - reconciliation (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings (numerator) | |||
Earnings, basic | $ 662.3 | $ 508 | $ 52 |
Dilutive impact of MCPS | 24.2 | ||
Earnings, diluted | $ 686.5 | $ 508 | $ 52 |
Weighted average shares outstanding (denominator) | |||
Weighted average shares outstanding, basic (in shares) | 650.9 | 590.5 | 576.3 |
Dilutive effect of stock-based awards (in shares) | 5.6 | 9.1 | 7.1 |
Dilutive impact of MCPS (in shares) | 22.9 | ||
Weighted average shares outstanding, diluted (in shares) | 679.4 | 599.6 | 583.4 |
Earnings per share: | |||
Basic (in dollars per share) | $ 1.02 | $ 0.86 | $ 0.09 |
Diluted (in dollars per share) | $ 1.01 | $ 0.85 | $ 0.09 |
Earnings or loss per share - an
Earnings or loss per share - antidilutive securities (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Accumulation of yield on preferred stock | $ 24.2 | $ 64.6 | $ 64.6 |
Convertible Preferred Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Accumulation of yield on preferred stock | $ 64.6 | $ 64.6 | |
Antidilutive securities excluded | 62.9 | 62.9 |
Risk and uncertainties (Details
Risk and uncertainties (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Employees in North America | Unions concentration risk | |
Concentration Risk [Line Items] | |
Concentration risk percentage | 5% |
Segment financial information -
Segment financial information - reportable segments (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Information by reportable segment | |||
Net sales | $ 7,512.4 | $ 7,386.1 | $ 6,393.6 |
Restructuring and severance charges4 | 1,570.7 | 1,458.6 | 1,141.6 |
Capital expenditures | 133.4 | 111.1 | 61.6 |
Depreciation and amortization | 405.5 | 379.2 | 395.4 |
Corporate | |||
Information by reportable segment | |||
Net sales | 0 | 0 | 0 |
Restructuring and severance charges4 | (172.2) | (172.2) | (138.4) |
Americas | |||
Information by reportable segment | |||
Net sales | 4,471.2 | 4,237.4 | 3,731.5 |
Restructuring and severance charges4 | 1,077.3 | 978.4 | 802.4 |
Capital expenditures | 88.6 | 75 | 36 |
Depreciation and amortization | 260.8 | 232.3 | 245.8 |
Europe | |||
Information by reportable segment | |||
Net sales | 2,516.5 | 2,677.3 | 2,286.7 |
Restructuring and severance charges4 | 524.1 | 538.5 | 397.8 |
Capital expenditures | 38.9 | 33.3 | 22.2 |
Depreciation and amortization | 139.2 | 140.9 | 139.8 |
AMEA | |||
Information by reportable segment | |||
Net sales | 524.7 | 471.4 | 375.4 |
Restructuring and severance charges4 | 141.5 | 113.9 | 79.8 |
Capital expenditures | 5.9 | 2.8 | 3.4 |
Depreciation and amortization | $ 5.5 | $ 6 | $ 9.8 |
Segment financial information_2
Segment financial information - reconciliation of segment profitability measure (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Reconciliation of Management EBITDA from net loss | |||
Net income | $ 686.5 | $ 572.6 | $ 116.6 |
Interest expense | 265.8 | 217.4 | 307.6 |
Income tax expense (benefit) | 164.6 | 180.4 | (54.3) |
Depreciation and amortization | 405.5 | 379.2 | 395.4 |
Net foreign currency (loss) gain from financing activities | 7 | 1.3 | (0.7) |
Net foreign currency loss (gain) from financing activities | (3.3) | 3 | 1.3 |
Acquisition related costs | 0 | 77.8 | 0 |
Other stock-based compensation (benefit) expense | 3.5 | 5.3 | 11.8 |
Disgorgement Penalty | 0 | (13) | |
Loss on extinguishment of debt | 12.5 | 12.4 | 346.8 |
Integration-related expenses2 | 19.2 | 15.9 | 17.1 |
Purchase accounting adjustments | 9.4 | 6.3 | 0 |
Restructuring and severance charges4 | $ 1,570.7 | $ 1,458.6 | $ 1,141.6 |
Segment financial information_3
Segment financial information - product lines (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation by product line | |||
Net sales | $ 7,512.4 | $ 7,386.1 | $ 6,393.6 |
Proprietary materials & consumables | |||
Disaggregation by product line | |||
Net sales | 2,898.4 | 2,548.2 | 2,043.6 |
Third party materials & consumables | |||
Disaggregation by product line | |||
Net sales | 2,704.1 | 2,906.3 | 2,671.8 |
Services & specialty procurement | |||
Disaggregation by product line | |||
Net sales | 921 | 922.6 | 817.5 |
Equipment & instrumentation | |||
Disaggregation by product line | |||
Net sales | $ 988.9 | $ 1,009 | $ 860.7 |
Segment financial information_4
Segment financial information - geographic areas (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Information by geographic area | |||
Net sales | $ 7,512.4 | $ 7,386.1 | $ 6,393.6 |
Property, plant and equipment, net | 727 | 705.5 | |
United States | |||
Information by geographic area | |||
Net sales | 4,278.1 | 3,931.7 | 3,493.7 |
Property, plant and equipment, net | 417 | 383.7 | |
Germany | |||
Information by geographic area | |||
Net sales | 478.7 | 561.7 | 511.4 |
Property, plant and equipment, net | 152.1 | 158.5 | |
Other countries in Europe | |||
Information by geographic area | |||
Net sales | 2,037.8 | 2,115.6 | 1,775.3 |
Property, plant and equipment, net | 103.3 | 107.1 | |
All other countries | |||
Information by geographic area | |||
Net sales | 717.8 | 777.1 | $ 613.2 |
Property, plant and equipment, net | $ 54.6 | $ 56.2 |
Supplemental disclosures of c_3
Supplemental disclosures of cash flow information (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Components and classification of cash, restricted cash and equivalents | ||||
Cash and cash equivalents | $ 372,900,000 | $ 301,700,000 | ||
Restricted cash classified as other assets | 24,000,000 | 25,400,000 | ||
Total | 396,900,000 | 327,100,000 | $ 289,200,000 | $ 189,300,000 |
Cash flows from operating activities: | ||||
Cash paid for income taxes, net | 256,900,000 | 144,700,000 | 42,700,000 | |
Cash paid for interest, net, excluding financing leases | 242,200,000 | 187,000,000 | 317,800,000 | |
Cash paid under operating leases | 42,900,000 | 43,600,000 | 42,300,000 | |
Cash paid for interest on finance leases | 5,100,000 | 5,100,000 | 5,300,000 | |
Cash flows from financing activities: | ||||
Cash paid under finance leases | 4,600,000 | $ 4,700,000 | $ 4,300,000 | |
Classification of contingent consideration payments | ||||
Cash, Held in Foreign Currency | 349,400,000 | |||
Cash, Not Held in Foreign Currency | $ 0.94 |
Inventory (Details)
Inventory (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Components of inventory | ||
Merchandise inventory | $ 556.1 | $ 562.9 |
Finished goods | 117.1 | 102.6 |
Raw materials | 181.2 | 156.1 |
Work in process | 59.1 | 50.4 |
Total | $ 913.5 | $ 872 |
Inventory under the LIFO method: | ||
Percentage of total inventory | 26% | 23% |
Excess of current cost over carrying value | $ 34.1 | $ 24.9 |
Property, plant and equipment_2
Property, plant and equipment (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 1,245.4 | $ 1,150.7 | |
Accumulated depreciation | (518.4) | (445.2) | |
Property, plant and equipment, net | 727 | 705.5 | |
Depreciation | 87.2 | 88.4 | $ 87.9 |
Buildings and related improvements | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 393.8 | 384.3 | |
Machinery, equipment and other | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 522.2 | 479.5 | |
Software | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 130.2 | 122.3 | |
Land | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | 57.8 | 67.7 | |
Assets not yet placed into service | |||
Property, plant and equipment | |||
Property, plant and equipment, gross | $ 141.4 | $ 96.9 |
Goodwill and other intangible_3
Goodwill and other intangible assets - goodwill (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes to goodwill | ||
Beginning balance, net | $ 5,341.1 | $ 2,860.2 |
Currency translation | (120.3) | (127.2) |
Additions | 431.8 | 2,608.1 |
Ending balance, net | 5,652.6 | 5,341.1 |
Accumulated impairment of goodwill | ||
Ending balance, net | 5,652.6 | 5,341.1 |
Accumulated impairment losses | 38.8 | 38.8 |
Ending balance, gross | 5,691.4 | 5,379.9 |
Americas | ||
Changes to goodwill | ||
Beginning balance, net | 3,411.4 | 1,611.6 |
Currency translation | (7.7) | 0.8 |
Additions | 427.1 | 1,799 |
Ending balance, net | 3,830.8 | 3,411.4 |
Accumulated impairment of goodwill | ||
Ending balance, net | 3,830.8 | 3,411.4 |
Accumulated impairment losses | 21 | 21 |
Ending balance, gross | 3,851.8 | 3,432.4 |
Europe | ||
Changes to goodwill | ||
Beginning balance, net | 1,897.9 | 1,218.5 |
Currency translation | (111.1) | (127.6) |
Additions | 0.6 | 807 |
Ending balance, net | 1,787.4 | 1,897.9 |
Accumulated impairment of goodwill | ||
Ending balance, net | 1,787.4 | 1,897.9 |
Accumulated impairment losses | 6.7 | 6.7 |
Ending balance, gross | 1,794.1 | 1,904.6 |
AMEA | ||
Changes to goodwill | ||
Beginning balance, net | 31.8 | 30.1 |
Currency translation | (1.5) | (0.4) |
Additions | 4.1 | 2.1 |
Ending balance, net | 34.4 | 31.8 |
Accumulated impairment of goodwill | ||
Ending balance, net | 34.4 | 31.8 |
Accumulated impairment losses | 11.1 | 11.1 |
Ending balance, gross | $ 45.5 | $ 42.9 |
Goodwill and other intangible_4
Goodwill and other intangible assets - intangible assets (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Finite-lived intangible assets | |||
Gross value | $ 5,791.7 | $ 6,520.8 | |
Accumulated amortization | 1,750.7 | 1,472.8 | |
Carrying value | 4,041 | 5,048 | |
Indefinite-lived | 92.3 | 92.3 | |
Total | 4,133.3 | 5,140.3 | |
Amortization | 318.3 | 290.8 | $ 307.5 |
Customer relationships | |||
Finite-lived intangible assets | |||
Gross value | 4,806.4 | 5,474.2 | |
Accumulated amortization | 1,333.5 | 1,121.6 | |
Carrying value | 3,472.9 | 4,352.6 | |
Trade names | |||
Finite-lived intangible assets | |||
Gross value | 354.4 | 505.1 | |
Accumulated amortization | 205.1 | 194.1 | |
Carrying value | 149.3 | 311 | |
Other | |||
Finite-lived intangible assets | |||
Gross value | 630.9 | 541.5 | |
Accumulated amortization | 212.1 | 157.1 | |
Carrying value | $ 418.8 | $ 384.4 |
Goodwill and other intangible_5
Goodwill and other intangible assets - estimated future amortization (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Estimated future amortization | ||
2023 | $ 313.1 | |
2024 | 313.1 | |
2025 | 311.9 | |
2026 | 310.5 | |
2027 | 309 | |
Thereafter | 2,483.4 | |
Carrying value | $ 4,041 | $ 5,048 |
Restructuring and severance - c
Restructuring and severance - charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Restructuring Cost and Reserve [Line Items] | |||
Expenses | $ 3.5 | $ 5.3 | $ 11.8 |
Expenses incurred | 9.6 | ||
2017 restructuring program | |||
Restructuring Cost and Reserve [Line Items] | |||
Expenses | 0 | 0 | 11 |
Expenses incurred | 129.8 | ||
Other | |||
Restructuring Cost and Reserve [Line Items] | |||
Expenses | $ 3.5 | $ 5.3 | $ 0.8 |
Restructuring and severance -_2
Restructuring and severance - charges incurred (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Incurred to date and expected charges | |||
Other stock-based compensation (benefit) expense | $ 3.5 | $ 5.3 | $ 11.8 |
Expenses incurred | 9.6 | ||
2017 restructuring program | |||
Incurred to date and expected charges | |||
Other stock-based compensation (benefit) expense | 0 | 0 | 11 |
Expenses incurred | 129.8 | ||
2017 restructuring program | Corporate | |||
Incurred to date and expected charges | |||
Other stock-based compensation (benefit) expense | 0 | ||
Expenses incurred | 14.9 | ||
2017 restructuring program | Americas | |||
Incurred to date and expected charges | |||
Other stock-based compensation (benefit) expense | 1.1 | ||
Expenses incurred | 53.8 | ||
2017 restructuring program | Europe | |||
Incurred to date and expected charges | |||
Other stock-based compensation (benefit) expense | 9.9 | ||
Expenses incurred | 60.3 | ||
2017 restructuring program | AMEA | |||
Incurred to date and expected charges | |||
Other stock-based compensation (benefit) expense | 0 | ||
Expenses incurred | 0.8 | ||
2017 restructuring program | Employee severance and related | |||
Incurred to date and expected charges | |||
Other stock-based compensation (benefit) expense | 0 | $ 0 | 10.7 |
Expenses incurred | 88.6 | ||
2017 restructuring program | Facility closure | |||
Incurred to date and expected charges | |||
Other stock-based compensation (benefit) expense | 0.3 | ||
Expenses incurred | 2.4 | ||
2017 restructuring program | Other | |||
Incurred to date and expected charges | |||
Other stock-based compensation (benefit) expense | $ 0 | ||
Expenses incurred | $ 38.8 |
Restructuring and severance - a
Restructuring and severance - accrued charges (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes to accrued charges | |||
Expenses | $ 3.5 | $ 5.3 | $ 11.8 |
2017 restructuring program | |||
Changes to accrued charges | |||
Expenses | 0 | 0 | 11 |
2017 restructuring program | Employee severance and related | |||
Changes to accrued charges | |||
Beginning balance | 4.1 | 12.4 | 15.8 |
Expenses | 0 | 0 | 10.7 |
Cash payments | (2.9) | (7.6) | (15.1) |
Currency translation | 0 | (0.7) | 1 |
Ending balance | $ 1.2 | $ 4.1 | $ 12.4 |
Commitments and contingencies (
Commitments and contingencies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Environmental remediation | Phillipsburg, New Jersey | |
Commitments and contingencies | |
Accrued environmental loss | $ 2.6 |
Accrued environmental loss, gross | $ 4 |
Environmental remediation | Phillipsburg, New Jersey | Minimum | |
Commitments and contingencies | |
Accrued environmental loss, discount rate | 3.80% |
Environmental remediation | Phillipsburg, New Jersey | Maximum | |
Commitments and contingencies | |
Accrued environmental loss, discount rate | 4.80% |
Environmental remediation | Gliwice, Poland | |
Commitments and contingencies | |
Accrued environmental loss | $ 1 |
Mallinckrodt indemnification | |
Commitments and contingencies | |
Cash held in escrow | 30 |
Mallinckrodt indemnification | Minimum | |
Commitments and contingencies | |
Settlement amount awarded | $ 12 |
Mallinckrodt indemnification | First $40 million of environmental costs | |
Commitments and contingencies | |
Percent indemnified | 80% |
Mallinckrodt indemnification | First $40 million of environmental costs | Maximum | |
Commitments and contingencies | |
Estimate of possible loss | $ 40 |
Mallinckrodt indemnification | $40 million to $80 million of environmental costs | |
Commitments and contingencies | |
Percent indemnified | 50% |
Mallinckrodt indemnification | $40 million to $80 million of environmental costs | Maximum | |
Commitments and contingencies | |
Estimate of possible loss | $ 40 |
Mallinckrodt indemnification | $80 million to $110 million of environmental costs | |
Commitments and contingencies | |
Percent indemnified | 100% |
Mallinckrodt indemnification | $80 million to $110 million of environmental costs | Maximum | |
Commitments and contingencies | |
Estimate of possible loss | $ 30 |
Debt - components (Details)
Debt - components (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Information about debt | |||
Gross amount | $ 6,349.1 | $ 7,113.2 | |
Less: unamortized deferred financing costs | (61.6) | (90) | |
Debt | 6,287.5 | 7,023.2 | |
Current portion of debt | 364.2 | 45.2 | |
Debt, net of current portion | 5,923.3 | 6,978 | |
Mandatory future repayments of debt principal | |||
2023 | 364.2 | ||
2024 | 37.3 | ||
2025 | 731.3 | ||
2026 | 364.4 | ||
2027 | 1,417.4 | ||
Thereafter | 3,434.5 | ||
Debt, gross | 6,349.1 | 7,113.2 | |
Information about credit facilities | |||
Capacity | 872.7 | ||
Undrawn letters of credit outstanding | (13.7) | ||
Outstanding borrowings | (327.2) | ||
Unused availability | 531.8 | ||
Loss on extinguishment of debt | (12.5) | (12.4) | $ (346.8) |
Amortization of deferred financing costs | $ 15.7 | 16.3 | $ 23.4 |
Secured Debt | |||
Information about debt | |||
Interest rate margin | 0.80% | ||
Interest rate | 5.26% | ||
Gross amount | $ 327.2 | 0 | |
Mandatory future repayments of debt principal | |||
Debt, gross | 327.2 | 0 | |
Information about credit facilities | |||
Capacity | 357.7 | ||
Undrawn letters of credit outstanding | (13.7) | ||
Outstanding borrowings | (327.2) | ||
Unused availability | 16.8 | ||
Senior secured credit facilities: | Revolving credit facility | |||
Information about credit facilities | |||
Capacity | 515 | ||
Undrawn letters of credit outstanding | 0 | ||
Outstanding borrowings | 0 | ||
Unused availability | 515 | ||
Senior secured credit facilities: | Term loans | |||
Information about credit facilities | |||
Loss on extinguishment of debt | $ (12.5) | (12.4) | |
Senior secured credit facilities: | Medium-term Notes, 2.50% | Euro | |||
Information about debt | |||
Interest rate margin | 2.50% | ||
Interest rate | 3.99% | ||
Gross amount | $ 636.7 | 684.9 | |
Mandatory future repayments of debt principal | |||
Debt, gross | $ 636.7 | 684.9 | |
Senior secured credit facilities: | Medium-term Notes, 2.50% | U.S. dollars | |||
Information about debt | |||
Interest rate | 6.32% | ||
Gross amount | $ 1,488.3 | 2,063.9 | |
Mandatory future repayments of debt principal | |||
Debt, gross | $ 1,488.3 | 2,063.9 | |
Senior secured credit facilities: | Medium-term Notes, 2.50% | U.S. dollars | Masterflex | |||
Information about debt | |||
Interest rate margin | 2.25% | ||
Senior secured credit facilities: | Medium-term Notes, 2.25% | Euro | |||
Information about debt | |||
Interest rate margin | 0% | ||
Interest rate | 0% | ||
Gross amount | $ 0 | 133.9 | |
Mandatory future repayments of debt principal | |||
Debt, gross | $ 0 | 133.9 | |
Senior secured credit facilities: | Medium-term Notes, 2.25% | U.S. dollars | |||
Information about debt | |||
Interest rate margin | 0% | ||
Interest rate | 0% | ||
Gross amount | $ 0 | 229.3 | |
Mandatory future repayments of debt principal | |||
Debt, gross | $ 0 | 229.3 | |
Senior secured credit facilities: | Medium-term Notes, 2.00% | Euro | |||
Information about debt | |||
Interest rate margin | 2% | ||
Interest rate | 3.49% | ||
Gross amount | $ 342 | 367.9 | |
Mandatory future repayments of debt principal | |||
Debt, gross | $ 342 | 367.9 | |
Notes | 3.875% unsecured notes | |||
Information about debt | |||
Interest rate | 3.875% | ||
Gross amount | $ 800 | 800 | |
Mandatory future repayments of debt principal | |||
Debt, gross | $ 800 | 800 | |
Notes | 4.625% unsecured notes | |||
Information about debt | |||
Interest rate | 4.625% | ||
Gross amount | $ 1,550 | 1,550 | |
Mandatory future repayments of debt principal | |||
Debt, gross | $ 1,550 | 1,550 | |
Notes | 2.625% secured notes | |||
Information about debt | |||
Interest rate | 2.625% | ||
Gross amount | $ 694.5 | 739.6 | |
Mandatory future repayments of debt principal | |||
Debt, gross | $ 694.5 | 739.6 | |
Notes | Senior unsecured Notes, 3.875%, Instrument 2 | |||
Information about debt | |||
Interest rate | 3.875% | ||
Finance lease liabilities | |||
Information about debt | |||
Gross amount | $ 68.9 | 71.2 | |
Mandatory future repayments of debt principal | |||
Debt, gross | 68.9 | 71.2 | |
Other | |||
Information about debt | |||
Gross amount | 14.2 | 17.4 | |
Mandatory future repayments of debt principal | |||
Debt, gross | $ 14.2 | $ 17.4 |
Debt - other information (Detai
Debt - other information (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||||||
Dec. 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Oct. 25, 2022 | Nov. 01, 2021 | Nov. 06, 2020 | Jul. 14, 2020 | |
Information about debt | ||||||||
Debt repayments | $ 947 | $ 533.9 | $ 4,361.5 | |||||
Loss on extinguishment of debt | 12.5 | 12.4 | 346.8 | |||||
Amortization of deferred financing costs | 15.7 | 16.3 | $ 23.4 | |||||
Line of Credit Facility, Current Borrowing Capacity Upsize | $ 400 | |||||||
Line of Credit Facility, Covenant Compliance, Draw Trigger Percentage | 35% | |||||||
Repayments of debt | $ 124 | 190 | ||||||
Secured Debt | ||||||||
Information about debt | ||||||||
Interest rate | 5.26% | 5.26% | ||||||
Amount pledged as collateral | $ 574.9 | $ 574.9 | ||||||
Senior secured credit facilities: | Revolving credit facility | ||||||||
Information about debt | ||||||||
Maximum availability | $ 515 | |||||||
Senior secured credit facilities: | Term loans | ||||||||
Information about debt | ||||||||
Loss on extinguishment of debt | 12.5 | 12.4 | ||||||
Senior secured credit facilities: | Term loans | U.S. dollars | ||||||||
Information about debt | ||||||||
Repayments of debt | 782.4 | $ 312.7 | ||||||
Senior secured credit facilities: | Medium Term Loan, Due November 8, 2027 | U.S. dollars | ||||||||
Information about debt | ||||||||
Face amount | $ 1,488.3 | |||||||
Senior secured credit facilities: | Medium Term Loan, Due June 9, 2026 | U.S. dollars | ||||||||
Information about debt | ||||||||
Face amount | 342 | 342 | ||||||
Senior secured credit facilities: | Medium Term Loan, Due June 9, 2028 | U.S. dollars | ||||||||
Information about debt | ||||||||
Face amount | $ 636.7 | $ 636.7 | ||||||
Notes | Masterflex | ||||||||
Information about debt | ||||||||
Debt issuance costs, current, net | $ 900 | |||||||
Notes | 4.625% unsecured notes | ||||||||
Information about debt | ||||||||
Interest rate | 4.625% | 4.625% | ||||||
Notes | 3.875% unsecured notes | ||||||||
Information about debt | ||||||||
Interest rate | 3.875% | 3.875% | ||||||
Notes | 2.625% secured notes | ||||||||
Information about debt | ||||||||
Interest rate | 2.625% | 2.625% |
Equity - Avantor, Inc. followin
Equity - Avantor, Inc. following the IPO (Details) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | ||
May 31, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Class of Stock [Line Items] | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |||
Preferred Stock, Dividend Rate, Percentage | 6.25% | |||
Payments of dividends | $ 32.4 | $ 64.6 | $ 64.6 | |
Avantor, Inc. following the IPO | Convertible Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred Stock, Par or Stated Value Per Share | $ 0.01 | |||
Preferred Stock, Shares Authorized | 75 | |||
Preferred Stock, Dividend Rate, Percentage | 6.25% | |||
Liquidation preference per share | $ 50 | |||
Accrued cumulative dividends in arrears | $ 0 | |||
Payments of dividends | $ 32.4 | |||
Avantor, Inc. following the IPO | Common stock | ||||
Class of Stock [Line Items] | ||||
Par value per share | $ 0.01 | |||
Shares authorized | 750 |
Accumulated other comprehensi_3
Accumulated other comprehensive income or (loss) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes in AOCI | |||
Beginning balance | $ (43.2) | $ 21.7 | $ (85.9) |
Unrealized gain (loss) | (21) | (56.5) | 99.1 |
Reclassification of (gain) loss into earnings | (8.4) | 3.6 | (1.1) |
Income tax expense (benefit) | (27.7) | (12) | 9.6 |
Ending balance | (100.3) | (43.2) | 21.7 |
Foreign currency translation | |||
Changes in AOCI | |||
Beginning balance | (19.2) | 51.8 | (62.3) |
Unrealized gain (loss) | (102) | (62.8) | 106.4 |
Reclassification of (gain) loss into earnings | 0 | 0 | 0 |
Income tax expense (benefit) | (10.1) | (8.2) | 7.7 |
Ending balance | (131.3) | (19.2) | 51.8 |
Derivative instruments | |||
Changes in AOCI | |||
Beginning balance | 0.4 | (1) | (0.5) |
Unrealized gain (loss) | 33.1 | (1.6) | 1 |
Reclassification of (gain) loss into earnings | (7.4) | 3.5 | (1.7) |
Income tax expense (benefit) | (6.2) | (0.5) | 0.2 |
Ending balance | 19.9 | 0.4 | (1) |
Defined benefit plans | |||
Changes in AOCI | |||
Beginning balance | (24.4) | (29.1) | (23.1) |
Unrealized gain (loss) | 47.9 | 7.9 | (8.3) |
Reclassification of (gain) loss into earnings | (1) | 0.1 | 0.6 |
Income tax expense (benefit) | (11.4) | (3.3) | 1.7 |
Ending balance | $ 11.1 | $ (24.4) | $ (29.1) |
Employee benefit plans - change
Employee benefit plans - changes in benefit obligations and plan assets and funded status (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
United States | Pension plans | ||
Benefit obligation: | ||
Beginning balance | $ 230.1 | $ 246 |
Service cost | 3.4 | 3.6 |
Interest cost | 5.3 | 4.4 |
Employee contributions | 0 | 0 |
Actuarial gain | (54.4) | (7.6) |
Benefits paid | (15.7) | (16.3) |
Settlements and curtailments | 0 | 0 |
Currency translation | 0 | 0 |
Other | 0 | 0 |
Ending balance | 168.7 | 230.1 |
Fair value of plan assets: | ||
Beginning balance | 268.9 | 286.6 |
(Loss) return on plan assets | (42.5) | (2.1) |
Employer contributions | 0.7 | 0.7 |
Employee contributions | 0 | 0 |
Benefits paid | (15.7) | (16.3) |
Settlements and curtailments | 0 | 0 |
Currency translation | 0 | 0 |
Other | 0 | 0 |
Ending balance | 211.4 | 268.9 |
Defined benefit plan, funded status of plan | ||
Funded status at end of year | 42.7 | 38.8 |
United States | Medical plans | ||
Benefit obligation: | ||
Beginning balance | 14.9 | 15.3 |
Service cost | 0.1 | 0.2 |
Interest cost | 0.3 | 0.3 |
Employee contributions | 0 | 0 |
Actuarial gain | (4.7) | (0.5) |
Benefits paid | (0.4) | (0.4) |
Settlements and curtailments | 0 | 0 |
Currency translation | 0 | 0 |
Other | 0 | 0 |
Ending balance | 10.2 | 14.9 |
Fair value of plan assets: | ||
Beginning balance | 0 | 0 |
(Loss) return on plan assets | 0 | 0 |
Employer contributions | 0.4 | 0.4 |
Employee contributions | 0 | 0 |
Benefits paid | (0.4) | (0.4) |
Settlements and curtailments | 0 | 0 |
Currency translation | 0 | 0 |
Other | 0 | 0 |
Ending balance | 0 | 0 |
Defined benefit plan, funded status of plan | ||
Funded status at end of year | (10.2) | (14.9) |
Non-U.S. | Pension plans | ||
Benefit obligation: | ||
Beginning balance | 291.6 | 301.4 |
Service cost | 4.1 | 5.5 |
Interest cost | 3.3 | 2.6 |
Employee contributions | 1.2 | 1.2 |
Actuarial gain | (92.6) | (1.7) |
Benefits paid | (5.6) | (3.3) |
Settlements and curtailments | (1.5) | (1.7) |
Currency translation | (21.1) | (11.1) |
Other | (0.1) | (1.3) |
Ending balance | 179.3 | 291.6 |
Fair value of plan assets: | ||
Beginning balance | 182.8 | 167.5 |
(Loss) return on plan assets | (49.4) | 16.9 |
Employer contributions | 5.6 | 5.2 |
Employee contributions | 1.2 | 1.2 |
Benefits paid | (5.6) | (3.3) |
Settlements and curtailments | (1.5) | (1.7) |
Currency translation | (14.7) | (3) |
Other | 0.2 | 0 |
Ending balance | 118.6 | 182.8 |
Defined benefit plan, funded status of plan | ||
Funded status at end of year | $ (60.7) | $ (108.8) |
Employee benefit plans - other
Employee benefit plans - other balance sheet information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
United States | Pension plans | ||
Defined benefit plan, additional information | ||
Accumulated benefit obligation | $ 164 | $ 222.1 |
Amounts recorded in balance sheet: | ||
Other assets | 47.8 | 49.2 |
Other current liabilities | (0.7) | (0.7) |
Other liabilities | (4.4) | (9.7) |
Funded status | 42.7 | 38.8 |
Components of AOCI, excluding tax effects: | ||
Actuarial (loss) gain | (16.1) | (16.4) |
Prior service gain | 0 | 0 |
United States | Medical plans | ||
Defined benefit plan, additional information | ||
Accumulated benefit obligation | 10 | 14.7 |
Amounts recorded in balance sheet: | ||
Other assets | 0 | 0 |
Other current liabilities | (0.8) | (0.8) |
Other liabilities | (9.4) | (14.1) |
Funded status | (10.2) | (14.9) |
Components of AOCI, excluding tax effects: | ||
Actuarial (loss) gain | 10.8 | 6.8 |
Prior service gain | 0 | 0.2 |
Non-U.S. | Pension plans | ||
Defined benefit plan, additional information | ||
Accumulated benefit obligation | 176.5 | 277.5 |
Amounts recorded in balance sheet: | ||
Other assets | 4.3 | 2.9 |
Other current liabilities | (2.8) | (2.9) |
Other liabilities | (62.2) | (108.8) |
Funded status | (60.7) | (108.8) |
Components of AOCI, excluding tax effects: | ||
Actuarial (loss) gain | 21 | (20.9) |
Prior service gain | $ 1.2 | $ 1 |
Employee benefit plans - assump
Employee benefit plans - assumptions used (Details) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
United States | Pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.40% | 2.80% |
Annual rate of salary increase | 3.50% | 2.50% |
United States | Medical plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 5.40% | 2.80% |
Annual rate of salary increase | 0% | 0% |
Health care cost trends: | ||
Initial rate | 5.90% | 5.40% |
Ultimate rate | 4% | 4% |
Year ultimate rate is reached | 2046 | 2046 |
Non-U.S. | Pension plans | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 4.10% | 1.30% |
Annual rate of salary increase | 1.90% | 1.80% |
Employee benefit plans - future
Employee benefit plans - future benefits expected to be paid (Details) $ in Millions | Dec. 31, 2022 USD ($) |
United States | Pension plans | |
Defined benefit plan, expected future benefit payment | |
2023 | $ 12.7 |
2024 | 12.8 |
2025 | 13.2 |
2026 | 13.2 |
2027 | 13.2 |
2028 – 2032 | 65.2 |
United States | Medical plans | |
Defined benefit plan, expected future benefit payment | |
2023 | 0.7 |
2024 | 0.8 |
2025 | 0.8 |
2026 | 0.8 |
2027 | 0.8 |
2028 – 2032 | 4.3 |
Non-U.S. | Pension plans | |
Defined benefit plan, expected future benefit payment | |
2023 | 8 |
2024 | 7.7 |
2025 | 8.2 |
2026 | 8.9 |
2027 | 9.3 |
2028 – 2032 | $ 56.4 |
Employee benefit plans - alloca
Employee benefit plans - allocation of plan assets (Details) - Pension plans - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
United States | |||
Defined benefit plan, information about plan assets | |||
Plan assets | $ 211.4 | $ 268.9 | $ 286.6 |
United States | Cash | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 5.2 | 4.2 | |
United States | Fixed income | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 164.5 | 211.7 | |
United States | Equity | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 41.7 | 53 | |
United States | Level 1 | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 5.2 | 4.2 | |
United States | Level 1 | Cash | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 5.2 | 4.2 | |
United States | Level 1 | Fixed income | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
United States | Level 1 | Equity | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
United States | Level 2 | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 206.2 | 264.7 | |
United States | Level 2 | Cash | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
United States | Level 2 | Fixed income | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 164.5 | 211.7 | |
United States | Level 2 | Equity | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 41.7 | 53 | |
United States | Level 3 | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
United States | Level 3 | Cash | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
United States | Level 3 | Fixed income | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
United States | Level 3 | Equity | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
United States | Fair Value Measured at Net Asset Value Per Share | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 118.6 | 182.8 | 167.5 |
Non-U.S. | Cash | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0.7 | 1.4 | |
Non-U.S. | Fixed income | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 46.1 | 93.3 | |
Non-U.S. | Equity | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 8.9 | 19.6 | |
Non-U.S. | Other | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 19.5 | 27.1 | |
Non-U.S. | Insurance contracts | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 43.4 | 41.4 | |
Non-U.S. | Level 1 | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0.7 | 1.4 | |
Non-U.S. | Level 1 | Cash | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0.7 | 1.4 | |
Non-U.S. | Level 1 | Fixed income | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | Level 1 | Equity | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | Level 1 | Other | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | Level 1 | Insurance contracts | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | Level 2 | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 61.3 | 125.8 | |
Non-U.S. | Level 2 | Cash | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | Level 2 | Fixed income | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 46.1 | 93.3 | |
Non-U.S. | Level 2 | Equity | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 8.9 | 19.6 | |
Non-U.S. | Level 2 | Other | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 6.3 | 12.9 | |
Non-U.S. | Level 2 | Insurance contracts | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | Level 3 | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 43.4 | 41.4 | $ 38.3 |
Non-U.S. | Level 3 | Cash | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Fixed income | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Equity | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Other | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 0 | 0 | |
Non-U.S. | Level 3 | Insurance contracts | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 43.4 | 41.4 | |
Non-U.S. | Fair Value Measured at Net Asset Value Per Share | |||
Defined benefit plan, information about plan assets | |||
Plan assets | 13.2 | 14.2 | |
Non-U.S. | Fair Value Measured at Net Asset Value Per Share | Other | |||
Defined benefit plan, information about plan assets | |||
Plan assets | $ 13.2 | $ 14.2 |
Employee benefit plans - chan_2
Employee benefit plans - changes to plan assets using unobservable inputs (Details) - Non-U.S. - Pension plans - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes to plan assets | ||
Beginning balance | $ 182.8 | $ 167.5 |
Currency translation | 21.1 | 11.1 |
Ending balance | 118.6 | 182.8 |
Level 3 | ||
Changes to plan assets | ||
Beginning balance | 41.4 | 38.3 |
Purchases | 4.1 | 9.1 |
Actual returns | 0.5 | 0.5 |
Settlements | (1.5) | (4.8) |
Currency translation | (1.1) | (1.7) |
Ending balance | $ 43.4 | $ 41.4 |
Stock-based compensation - expe
Stock-based compensation - expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other information about options outstanding | |||
Expense | $ 45.8 | $ 50.7 | $ 44.1 |
Remaining expense to be recognized | $ 71 | ||
Weighted average period over which remaining expense will be recognized | 1 year 7 months 6 days | ||
Stock options | |||
Other information about options outstanding | |||
Expense | $ 16 | 18.8 | 16.9 |
RSUs | |||
Other information about options outstanding | |||
Expense | 31.7 | 26.8 | 23.8 |
Optionholder awards | |||
Other information about options outstanding | |||
Expense | 0 | 0 | 0.6 |
Other | |||
Other information about options outstanding | |||
Expense | (1.9) | 5.1 | 2.8 |
Equity | |||
Other information about options outstanding | |||
Expense | 49.1 | 47.7 | 42.2 |
Liability | |||
Other information about options outstanding | |||
Expense | $ (3.3) | $ 3 | $ 1.9 |
Stock-based compensation - stoc
Stock-based compensation - stock option rollforward information (Details) - Common stock including paid-in capital $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Number of options outstanding | |
Beginning balance | shares | 16.3 |
Granted | shares | 1.3 |
Exercised | shares | (0.7) |
Forfeited | shares | (0.8) |
Ending balance | shares | 16.1 |
Weighted average exercise price per outstanding option | |
Beginning balance | $ / shares | $ 19.83 |
Granted | $ / shares | 31.52 |
Exercised | $ / shares | 16.92 |
Forfeited | $ / shares | 20.22 |
Ending balance | $ / shares | $ 20.90 |
Other information about options outstanding | |
Aggregate intrinsic value | $ | $ 41.2 |
Weighted average remaining contractual term | 6 years 1 month 6 days |
Information about options expected to vest and exercisable | |
Options expected to vest, number | shares | 4.6 |
Options expected to vest, weighted average exercise price per option | $ / shares | $ 23.35 |
Options expected to vest, aggregate intrinsic value | $ | $ 10 |
Options expected to vest, weighted average remaining term | 7 years 10 months 24 days |
Options exercisable, number | shares | 11.5 |
Options exercisable, weighted average exercise price per option | $ / shares | $ 19.93 |
Options exercisable, aggregate intrinsic value | $ | $ 31.2 |
Options exercisable, weighted average remaining term | 5 years 4 months 24 days |
Stock-based compensation - othe
Stock-based compensation - other information about stock options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted-average information about options granted | |||
Grant date fair value per option | $ 11.09 | $ 8.63 | $ 5.43 |
Expected stock price volatility | 31% | 29% | 28% |
Risk free interest rate | 2.20% | 1.10% | 1.40% |
Expected dividend rate | 0% | 0% | 0% |
Expected life of options | 6 years 3 months 18 days | 6 years 3 months 18 days | 6 years 2 months 12 days |
Other information about stock options | |||
Fair value of options vested | $ 15.4 | $ 17.2 | $ 12 |
Intrinsic value of options exercised | $ 10.1 | $ 74.9 | $ 100.8 |
Stock-based compensation - non-
Stock-based compensation - non-option award rollforward (Details) - $ / shares shares in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted average grant date fair value per award | |||
Forfeited | $ 20,900,000 | $ 27,500,000 | $ 23,500,000 |
RSUs | |||
Number of awards | |||
Beginning balance | 4.4 | ||
Granted | 1.1 | ||
Vested | (1.1) | ||
Forfeited | (0.2) | ||
Ending balance | 4.2 | 4.4 | |
Weighted average grant date fair value per award | |||
Beginning balance | $ 19.52 | ||
Granted | 33.02 | ||
Vested | 18.95 | ||
Forfeited | 26.73 | ||
Ending balance | $ 24.29 | $ 19.52 |
Stock-based compensation - ot_2
Stock-based compensation - other information (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Other information about options outstanding | |||
Shares authorized | 23.5 | ||
Shares available for future issuance | 27 | ||
Tax benefit of options exercised | $ 10.3 | $ 30 | $ 32.6 |
Restricted Stock or Unit Expense | $ 7.3 | $ 7.4 | $ 5.1 |
Other income or expense, net (D
Other income or expense, net (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Nov. 01, 2021 | |
Other Income and Expenses [Line Items] | ||||
Net foreign currency (loss) gain from financing activities | $ (7) | $ (1.3) | $ 0.7 | |
Income related to defined benefit plans | 6 | 10.4 | 8.8 | |
Other income | 0.2 | 1.5 | 0.4 | |
Other (expense) income, net | (0.8) | 10.6 | $ 9.9 | |
Disgorgement Penalty | 0 | 13 | ||
Write off of Deferred Debt Issuance Cost | 11.9 | |||
Term loan | $ 6,349.1 | $ 7,113.2 | ||
Masterflex | Notes | ||||
Other Income and Expenses [Line Items] | ||||
Debt issuance costs, current, net | $ 900 |
Income taxes - statements of op
Income taxes - statements of operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income (loss) before income taxes: | |||
United States | $ 618 | $ 555 | $ (2.6) |
Foreign | 233.1 | 198 | 64.9 |
Income before income taxes | 851.1 | 753 | 62.3 |
Current income tax (expense) benefit | |||
Federal | (119.9) | (74) | 30.4 |
State | (32.2) | (32.3) | (4.8) |
Foreign | (81.6) | (91.8) | (58.8) |
Subtotal | (233.7) | (198.1) | (33.2) |
Deferred income tax (expense) benefit | |||
Federal | 18 | (11.6) | 28 |
State | 4.4 | (1.9) | 14.4 |
Foreign | 46.7 | 31.2 | 45.1 |
Subtotal | 69.1 | 17.7 | 87.5 |
Income tax (expense) benefit | $ (164.6) | $ (180.4) | $ 54.3 |
Income taxes - rate reconciliat
Income taxes - rate reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Rate reconciliation | |||
Income (Loss) from Continuing Operations before Income Taxes, Noncontrolling Interest | $ 851.1 | $ 753 | $ 62.3 |
United States federal corporate rate | 21% | 21% | 21% |
Income tax expense at federal corporate rate | $ (178.7) | $ (158.2) | $ (13.1) |
State income taxes, net of federal benefit | (23.3) | (27) | 7.6 |
Rate changes related to foreign jurisdictions | 1.3 | (9.7) | (4) |
Stock-based compensation | 3.5 | 14.5 | 10.1 |
Foreign taxes | 12.8 | 1.4 | 5.7 |
Valuation allowance | 4.8 | 4.1 | (1.1) |
Changes to uncertain tax positions | 1.1 | (10.7) | 40.8 |
Foreign-derived intangible income | 12.1 | 8.2 | 6.9 |
Transaction costs | 0 | (2.1) | 0 |
Other, net | 1.8 | (0.9) | 1.4 |
Income tax (expense) benefit | $ (164.6) | $ (180.4) | $ 54.3 |
Income taxes - deferred assets
Income taxes - deferred assets and liabilities (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Reserves and accrued expenses | $ 61.7 | $ 51.6 |
Pension, postretirement and environmental liabilities | 1.1 | 14.7 |
Net operating loss and research and development carryforwards | 325.7 | 312.4 |
Other | 6.1 | 10.2 |
Deferred tax assets, gross | 394.6 | 388.9 |
Less: valuation allowances | (179.7) | (187.6) |
Deferred tax assets, net | 214.9 | 201.3 |
Deferred tax liabilities: | ||
Intangibles | (810.4) | (892.8) |
Property, plant and equipment | (51.3) | (52) |
Investment in partnerships | (44.1) | (148) |
Deferred tax liabilities | (905.8) | (1,092.8) |
Net deferred tax liability | (690.9) | (891.5) |
Other Assets | ||
Deferred tax assets: | ||
Deferred tax assets, net | 40.5 | 21.5 |
Deferred Income Tax Charge [Member] | ||
Deferred tax liabilities: | ||
Net deferred tax liability | $ (731.4) | $ (913) |
Income taxes - changes to uncer
Income taxes - changes to uncertain tax positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes to the reserve for uncertain tax positions | |||
Beginning balance | $ 55.3 | $ 46.7 | $ 83.6 |
Additions: | |||
Tax positions related to the current year | 1.2 | 5.1 | 3.4 |
Tax positions related to prior years | 0 | 7.3 | 3.6 |
Reductions: | |||
Tax positions related to prior years | 0 | 0 | (0.1) |
Settlements with taxing authorities | (0.1) | (0.9) | (43.1) |
Lapse of statutes of limitations | (2.4) | (1.6) | (1.8) |
Currency translation increase | (2.2) | ||
Currency translation decrease | (1.3) | (1.1) | |
Ending balance | $ 51.8 | $ 55.3 | $ 46.7 |
Income taxes - other informatio
Income taxes - other information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Tax reform legislation in the United States | |||
Transition tax payable | $ 46.4 | ||
Additional information about valuation allowance | |||
Increase (decrease) | (7.9) | $ (22.3) | $ 16 |
Amount | 179.7 | 187.6 | |
Additional information about uncertain tax positions | |||
Accrued interest and penalties | 6.7 | $ 5.3 | $ 3.9 |
Maximum amount of decrease that is reasonably possible | 1.3 | ||
Other matters | |||
Undistributed earnings of foreign subsidiaries | 2,712.8 | ||
Federal | |||
Other matters | |||
Operating loss carryforwards | 25.1 | ||
State and Local | |||
Other matters | |||
Operating loss carryforwards | 193.5 | ||
Foreign | |||
Other matters | |||
Operating loss carryforwards | 621 | ||
Foreign net operating loss carryforward | |||
Additional information about valuation allowance | |||
Amount | $ 155 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities (Details) € in Millions | 1 Months Ended | 12 Months Ended | ||||
Dec. 31, 2022 USD ($) instrument | Jul. 27, 2022 USD ($) | Dec. 31, 2022 USD ($) instrument | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Dec. 31, 2022 EUR (€) instrument | |
Derivatives, Fair Value [Line Items] | ||||||
Cash Flow Hedge Gain (Loss) to be Reclassified within 12 Months | $ 15,200,000 | |||||
Amount of gain or (loss) recognized in OCI on Derivative | $ 33,100,000 | $ (1,600,000) | $ 1,000,000 | |||
Amount of gain or (loss) reclassified from AOCI into income | 7,400,000 | (3,500,000) | 1,700,000 | |||
Cash flow hedges | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of gain or (loss) recognized in OCI on Derivative | 24,300,000 | 0 | ||||
Amount of gain or (loss) reclassified from AOCI into income | (1,900,000) | 0 | ||||
Amount of gain or (loss) recognized in income on Derivative (amount excluded from effectiveness testing) | (265,800,000) | 0 | ||||
Net investment hedges | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of gain or (loss) recognized in income on Derivative (amount excluded from effectiveness testing) | 9,700,000 | 0 | ||||
Amount of gain or (loss) recognized in OCI on Derivative | 30,600,000 | 0 | ||||
Designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, fair value | (21,400,000) | (21,400,000) | 0 | |||
Derivative asset, fair value | $ 26,200,000 | $ 26,200,000 | 0 | |||
Interest rate swaps | Cash flow hedges | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Number of instruments | instrument | 1 | 1 | 1 | |||
Notional amount | $ 750,000,000 | $ 750,000,000 | ||||
Amount of gain or (loss) recognized in OCI on Derivative | 24,300,000 | 0 | ||||
Interest rate swaps | Cash flow hedges | Interest expense | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of gain or (loss) reclassified from AOCI into income | (1,900,000) | 0 | ||||
Interest rate swaps | Designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, fair value | 0 | 0 | 0 | |||
Derivative asset, fair value | $ 26,200,000 | $ 26,200,000 | 0 | |||
Cross-currency swaps | Net investment hedges | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Number of instruments | instrument | 1,000,000 | 1,000,000 | 1,000,000 | |||
Notional amount | $ 750,000,000 | $ 750,000,000 | ||||
Notional amount sold | 732,100,000 | 732,100,000 | ||||
Amount of gain or (loss) recognized in OCI on Derivative | 30,600,000 | 0 | ||||
Proceeds from derivative instruments | $ 42,500,000 | |||||
Cross-currency swaps | Net investment hedges | Interest income | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of gain or (loss) recognized in income on Derivative (amount excluded from effectiveness testing) | 9,700,000 | 0 | ||||
Foreign exchange products | Designated as hedging instrument | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Derivative liability, fair value | (21,400,000) | (21,400,000) | 0 | |||
Derivative asset, fair value | $ 0 | 0 | 0 | |||
Foreign exchange products | Designated as hedging instrument | 3.875% unsecured notes | ||||||
Derivatives, Fair Value [Line Items] | ||||||
Amount of gain or (loss) recognized in OCI on Derivative | $ (24,300,000) | 3,500,000 | ||||
Derivative Liability | € | € 400 | |||||
Interest rate | 3.875% | 3.875% | 3.875% | |||
Accumulated transactional gain related the net investment hedges | $ (27,800,000) | $ (34,100,000) | $ 37,600,000 |
Financial instruments and fai_3
Financial instruments and fair value measurements - debt instruments (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Gross amount | $ 6,349.1 | $ 7,113.2 |
Fair value | 5,998.6 | 7,201.8 |
Secured Debt | ||
Debt Instrument [Line Items] | ||
Gross amount | 327.2 | 0 |
Fair value | 327.2 | 0 |
Senior secured credit facilities: | Medium-term Notes, 2.50% | Euro | ||
Debt Instrument [Line Items] | ||
Gross amount | 636.7 | 684.9 |
Fair value | 627.5 | 683.6 |
Senior secured credit facilities: | Medium-term Notes, 2.50% | U.S. dollars | ||
Debt Instrument [Line Items] | ||
Gross amount | 1,488.3 | 2,063.9 |
Fair value | 1,485.5 | 2,029.1 |
Senior secured credit facilities: | Medium-term Notes, 2.25% | Euro | ||
Debt Instrument [Line Items] | ||
Gross amount | 0 | 133.9 |
Fair value | 0 | 133.7 |
Senior secured credit facilities: | Medium-term Notes, 2.25% | U.S. dollars | ||
Debt Instrument [Line Items] | ||
Gross amount | 0 | 229.3 |
Fair value | 0 | 224.9 |
Senior secured credit facilities: | Medium-term Notes, 2.00% | Euro | ||
Debt Instrument [Line Items] | ||
Gross amount | 342 | 367.9 |
Fair value | 340.7 | 367.7 |
Notes | 3.875% unsecured notes | ||
Debt Instrument [Line Items] | ||
Gross amount | 800 | 800 |
Notes | 4.625% unsecured notes | ||
Debt Instrument [Line Items] | ||
Gross amount | 1,550 | 1,550 |
Fair value | 1,407.6 | 1,629.8 |
Notes | 2.625% secured notes | ||
Debt Instrument [Line Items] | ||
Gross amount | 694.5 | 739.6 |
Fair value | 658.5 | 758.2 |
Notes | 3.875%, Due November 21, 2024, Instrument 1 | ||
Debt Instrument [Line Items] | ||
Gross amount | 800 | 800 |
Fair value | 672 | 810.9 |
Notes | 3.875% Due November 21, 2024, Instrument 2 | ||
Debt Instrument [Line Items] | ||
Gross amount | 427.3 | 455.1 |
Fair value | 396.5 | 475.3 |
Finance lease liabilities | ||
Debt Instrument [Line Items] | ||
Gross amount | 68.9 | 71.2 |
Fair value | 68.9 | 71.2 |
Other | ||
Debt Instrument [Line Items] | ||
Gross amount | 14.2 | 17.4 |
Fair value | $ 14.2 | $ 17.4 |
Financial instruments and fai_4
Financial instruments and fair value measurements - recurring measurements with significant unobservable inputs (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Changes to contingent consideration liabilities | ||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Purchases | $ 0 | $ 6.1 |
Contingent consideration | ||
Changes to contingent consideration liabilities | ||
Beginning balance | 5.7 | 0 |
Changes to estimated fair value | (4.4) | 0 |
Cash payments | 0 | 0 |
Currency translation | (0.1) | (0.4) |
Ending balance | $ 1.2 | $ 5.7 |
Leases (Details)
Leases (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Information about lease assets and liabilities | |||
Operating lease assets | $ 118.7 | $ 107.8 | |
Current portion of operating lease liabilities | 35.6 | 34.1 | |
Operating lease liabilities, net of current portion | 86.6 | 78.6 | |
Finance lease assets | $ 55.3 | $ 59.9 | |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Other current liabilities | Other current liabilities | |
Current portion of finance lease liabilities | $ 4.3 | $ 4.2 | |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other liabilities | Other liabilities | |
Finance lease liabilities, net of current portion | $ 64.7 | $ 67 | |
Information about lease expense | |||
Operating lease expense | 48.5 | 48.2 | $ 52 |
Finance lease expense | 10.7 | 11.1 | 11.3 |
Total | $ 59.2 | $ 59.3 | $ 63.3 |
Weighted average remaining lease term: | |||
Operating leases | 6 years 3 months 18 days | 5 years | |
Finance leases | 12 years 8 months 12 days | 13 years 6 months | |
Weighted average discount rate: | |||
Operating leases | 3.90% | 4.40% | |
Finance leases | 7.80% | 7.90% | |
Future payments due under operating leases | |||
2023 | $ 39.1 | ||
2024 | 31.9 | ||
2025 | 19.5 | ||
2026 | 12.5 | ||
2027 | 6.5 | ||
Thereafter | 26.6 | ||
Total undiscounted lease payments | 136.1 | ||
Difference between undiscounted and discounted lease payments | (13.9) | ||
Lease liabilities | 122.2 | ||
Future payments due under finance leases | |||
2023 | 9.3 | ||
2024 | 9.2 | ||
2025 | 8.5 | ||
2026 | 7.8 | ||
2027 | 7.8 | ||
Thereafter | 73.3 | ||
Total undiscounted lease payments | 115.9 | ||
Difference between undiscounted and discounted lease payments | (46.9) | ||
Lease liabilities | $ 69 | ||
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Property, plant and equipment, net of accumulated depreciation of $518.4 and $445.2 | Property, plant and equipment, net of accumulated depreciation of $518.4 and $445.2 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets | |
Cost of sales | |||
Information about lease expense | |||
Operating lease expense | $ 7.9 | $ 7.3 | |
SG&A expenses | |||
Information about lease expense | |||
Operating lease expense | $ 40.6 | $ 40.9 |
Condensed unconsolidated fina_3
Condensed unconsolidated financial information of Avantor, Inc. - balance sheets (Details) - USD ($) shares in Millions, $ in Millions | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Assets | ||||
Total assets | $ 13,464.3 | $ 13,897.2 | ||
Liabilities and stockholders’ equity | ||||
MCPS including paid-in capital, 0.0 and 20.7 shares outstanding | 0 | 1,003.7 | ||
Common stock including paid-in capital, 674.3 and 609.7 shares outstanding | 3,785.3 | 2,752.6 | ||
Accumulated earnings | 1,170.4 | 483.9 | ||
Accumulated other comprehensive loss | (100.3) | (43.2) | $ 21.7 | $ (85.9) |
Total stockholders’ equity | $ 4,855.4 | $ 4,197 | 2,674.3 | $ 2,462.2 |
Additional information | ||||
Preferred equity, shares outstanding | 0 | 20.7 | ||
Common stock, shares, outstanding | 674.3 | 609.7 | ||
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | $ 69.8 | $ 37.9 | 99.9 | |
Unconsolidated Avantor, Inc | ||||
Assets | ||||
Investment in unconsolidated subsidiaries | 4,855.4 | 4,197 | ||
Total assets | 4,855.4 | 4,197 | ||
Liabilities and stockholders’ equity | ||||
MCPS including paid-in capital, 0.0 and 20.7 shares outstanding | 0 | 1,003.7 | ||
Common stock including paid-in capital, 674.3 and 609.7 shares outstanding | 3,785.3 | 2,752.6 | ||
Accumulated earnings | 1,170.4 | 483.9 | ||
Accumulated other comprehensive loss | (100.3) | (43.2) | ||
Total stockholders’ equity | $ 4,855.4 | $ 4,197 | ||
Additional information | ||||
Preferred equity, shares outstanding | 0 | 20.7 | ||
Common stock, shares, outstanding | 674.3 | 609.7 |
Condensed unconsolidated fina_4
Condensed unconsolidated financial information of Avantor, Inc. - statements of cash flows (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from financing activities: | |||
Payments of dividends on preferred stock | $ (32.4) | $ (64.6) | $ (64.6) |
Net Cash Provided by (Used in) Investing Activities | (109.6) | (4,121.7) | (59.1) |
Proceeds received from exercise of stock options, net of shares repurchased to satisfy employee tax obligations for vested stock-based awards | (13.2) | (25.8) | 0 |
Net cash (used in) provided by financing activities | (648.7) | 3,219.2 | (782.9) |
Cash, Cash Equivalents, Restricted Cash and Restricted Cash Equivalents, Period Increase (Decrease), Including Exchange Rate Effect | 69.8 | 37.9 | 99.9 |
Net change in cash and cash equivalents of Unconsolidated entity | 0 | ||
Cash, cash equivalents and restricted cash, beginning of year | 327.1 | 289.2 | 189.3 |
Cash, cash equivalents and restricted cash, end of year | 396.9 | 327.1 | 289.2 |
Unconsolidated Avantor, Inc | |||
Cash flows from financing activities: | |||
Contribution from (to) unconsolidated subsidiaries | 28.3 | (967.3) | |
Proceeds from issuance of stock, net of issuance costs | 0 | 967 | 0 |
Payments of dividends on preferred stock | (32.4) | (64.6) | (64.6) |
Contribution from unconsolidated subsidiaries | 0 | 44.4 | |
Net Cash Provided by (Used in) Investing Activities | 28.3 | (967.3) | |
Proceeds received from exercise of stock options, net of shares repurchased to satisfy employee tax obligations for vested stock-based awards | 4.1 | 64.9 | 20.2 |
Net cash (used in) provided by financing activities | (28.3) | 967.3 | 0 |
Cash, cash equivalents and restricted cash, beginning of year | 0 | 0 | |
Cash, cash equivalents and restricted cash, end of year | $ 0 | $ 0 | $ 0 |
Valuation and qualifying acco_3
Valuation and qualifying accounts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Changes to valuation and qualifying accounts | |||
Cumulative effect of adopting new accounting standard | $ 2.2 | ||
Deductions(1) | (13.6) | ||
Allowance for expected credit losses | |||
Changes to valuation and qualifying accounts | |||
Beginning balance | $ 26.4 | $ 26.2 | 18.6 |
Cumulative effect of adopting new accounting standard | 6.9 | 3.6 | 10.2 |
Other additions | (2.6) | (4.1) | |
Deductions(1) | (3.7) | (0.8) | (0.7) |
Currency translation | (1.4) | ||
Ending balance | 28.2 | 26.4 | 26.2 |
Valuation allowances on deferred tax assets | |||
Changes to valuation and qualifying accounts | |||
Beginning balance | 187.6 | 209.9 | 193.9 |
Cumulative effect of adopting new accounting standard | 2.7 | (9.4) | 2.4 |
Other additions | 0 | ||
Deductions(1) | 0 | (12.9) | |
Currency translation | (10.6) | ||
Ending balance | $ 179.7 | $ 187.6 | $ 209.9 |