Avantor, Inc.AVTR
Avantor, Inc. Goodwill & Intangibles Disclosure
Goodwill and other intangible assets
Goodwill
As described in note 2, we reorganized our segment reporting structure effective January 1, 2024. The segment reporting reorganization also resulted in a change to our reporting units for the purpose of goodwill impairment testing. Our reporting units are Distribution (formerly referred to as Buy Sell Lab), Laboratory Specialty Products (formerly referred to as Proprietary Lab), Laboratory Services (formerly referred to as Services), Manufactured Products, Controlled Environment Consumables (formerly referred to as Buy Sell Production), and NuSil. As a result of the reorganization, our goodwill was reassigned to the new reporting units making up our Laboratory Solutions and Bioscience Production reporting segments.
We reassigned goodwill as of January 1, 2024 to align to our new segment structure by using a relative fair value approach as required under GAAP. We tested goodwill for impairment immediately before and after the reorganization of our reporting structure; no impairment was identified.
The following table presents goodwill by our reportable segments, on the effective date of the change:
| Laboratory Solutions | Bioscience Production | Total | |||||||||||||||
| Goodwill, gross | $ | 3,842.0 | $ | 1,913.5 | $ | 5,755.5 | |||||||||||
| Accumulated impairment losses | (18.4) | (20.4) | (38.8) | ||||||||||||||
| Goodwill, net | $ | 3,823.6 | $ | 1,893.1 | $ | 5,716.7 | |||||||||||
As described in note 6, as a result of sustained decreases in our publicly quoted share price and market capitalization as well as changes in the operating results of our Distribution reporting unit, we conducted an interim test of our goodwill as of September 30, 2025.
We estimate the fair value of reporting units using a weighted average of two valuation methods based on a discounted cash flows method and a guideline public company method. These valuation methods require management to make various assumptions, including, but not limited to, future profitability, cash flows, including revenues, gross margin, SG&A expenses, capital expenditures, and investments in debt free net working capital, current market assumptions for the discount rates, weighting of valuation methods and the selection of comparable publicly traded companies. Variations in any of these assumptions could result in materially different calculations of fair value.
Based on the results of the impairment test, the carrying amount of our Distribution reporting unit exceeded its fair value, resulting in a non-deductible, non-cash goodwill impairment charge of $785.0 million, which was recorded in the consolidated statement of operations. We did not identify impairment of any other long-lived assets in this reporting unit. The remaining reporting units tested were not impaired, as their estimated fair values exceeded their respective carrying amounts as of the interim testing date.
Following the impairment charge, the carrying value of the Distribution reporting unit is equal to its estimated fair value. Recognition of additional impairment charges may be required in future periods if market conditions, projected results, or other valuation assumptions deteriorate further.
Since October 1, 2025 is our designated annual impairment testing date, management performed the required procedures to reassess impairment as of that date, including a review of key assumptions, market
indicators, and other relevant factors. No conditions were identified that differed materially from those considered in the September 30, 2025 interim analysis. Accordingly, the conclusions reached in that interim test remained appropriate, and no additional was recorded as of October 1, 2025.
The following tables present changes in goodwill by reportable segment:
(in millions) | December 31, 2025 | ||||||||||||||||
| Laboratory Solutions | Bioscience Production | Total | |||||||||||||||
| Beginning balance, net | $ | 3,651.2 | $ | 1,888.0 | $ | 5,539.2 | |||||||||||
| Currency translation | 223.1 | 9.6 | 232.7 | ||||||||||||||
| Impairment loss | (785.0) | — | (785.0) | ||||||||||||||
| Ending balance, net | 3,089.3 | 1,897.6 | 4,986.9 | ||||||||||||||
| Accumulated impairment losses | 803.4 | 20.4 | 823.8 | ||||||||||||||
| Ending balance, gross | $ | 3,892.7 | $ | 1,918.0 | $ | 5,810.7 | |||||||||||
(in millions) | December 31, 2024 | ||||||||||||||||
| Laboratory Solutions | Bioscience Production | Total | |||||||||||||||
| Beginning balance, net | $ | 3,823.6 | $ | 1,893.1 | $ | 5,716.7 | |||||||||||
| Currency translation | (113.4) | (5.1) | (118.5) | ||||||||||||||
| Divestitures | (59.0) | — | (59.0) | ||||||||||||||
| Ending balance, net | 3,651.2 | 1,888.0 | 5,539.2 | ||||||||||||||
| Accumulated impairment losses | 18.4 | 20.4 | 38.8 | ||||||||||||||
| Ending balance, gross | $ | 3,669.6 | $ | 1,908.4 | $ | 5,578.0 | |||||||||||
Other intangible assets
The following table presents the components of other intangible assets:
(in millions) | December 31, 2025 | December 31, 2024 | |||||||||||||||||||||||||||||||||
| Gross value | Accumulated amortization and impairment1 | Carrying value | Gross value | Accumulated amortization and impairment1 | Carrying value | ||||||||||||||||||||||||||||||
| Customer relationships | $ | 4,915.0 | $ | 2,172.7 | $ | 2,742.3 | $ | 4,697.5 | $ | 1,840.4 | $ | 2,857.1 | |||||||||||||||||||||||
| Trade names | 366.8 | 272.9 | 93.9 | 351.6 | 240.4 | 111.2 | |||||||||||||||||||||||||||||
| Other | 641.6 | 376.3 | 265.3 | 626.8 | 327.2 | 299.6 | |||||||||||||||||||||||||||||
| Total finite-lived | $ | 5,923.4 | $ | 2,821.9 | 3,101.5 | $ | 5,675.9 | $ | 2,408.0 | 3,267.9 | |||||||||||||||||||||||||
| Indefinite-lived | 92.3 | 92.3 | |||||||||||||||||||||||||||||||||
| Total | $ | 3,193.8 | $ | 3,360.2 | |||||||||||||||||||||||||||||||
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1.As of December 31, 2025 and December 31, 2024, accumulated impairment losses on Customer relationships were $65.9 million and on Other were $40.5 million, totaling $106.4 million.
Amortization expense was $301.1 million in 2025, $299.8 million in 2024 and $307.7 million in 2023.
We recorded an impairment charge of $106.4 million on Ritter’s finite-lived intangible assets in the second quarter of 2023 in connection with the impairment of Ritter’s property, plant & equipment, as previously discussed in note 10. This charge impacted our Laboratory Solutions reportable segment.
The following table presents estimated future amortization:
(in millions) | December 31, 2025 | ||||
| 2026 | $ | 303.5 | |||
| 2027 | 302.0 | ||||
| 2028 | 286.6 | ||||
| 2029 | 282.8 | ||||
| 2030 | 280.1 | ||||
| Thereafter | 1,646.5 | ||||
| Total | $ | 3,101.5 | |||
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Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 11, 2026 | Showing above |
| 2024 | Feb 7, 2025 | |
| 2023 | Feb 14, 2024 | |
| 2022 | Feb 14, 2023 | |
| 2021 | Feb 11, 2022 | |
| 2020 | Feb 16, 2021 | |
| 2019 | Feb 14, 2020 | |
About Goodwill & Intangibles Disclosures
Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.
Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.