Sotera Health Co Goodwill & Intangibles Disclosure
(thousands of U.S. dollars) | Sterigenics | Nordion | Nelson Labs | Total | |||||||||||||||||||
| Goodwill at January 1, 2024 | $ | 659,888 | $ | 276,929 | $ | 174,373 | $ | 1,111,190 | |||||||||||||||
| Changes due to foreign currency exchange rates | (6,666) | (21,444) | (2,007) | (30,117) | |||||||||||||||||||
| Goodwill at December 31, 2024 | 653,222 | 255,485 | 172,366 | 1,081,073 | |||||||||||||||||||
| Changes due to foreign currency exchange rates | 5,697 | 12,286 | 4,176 | 22,159 | |||||||||||||||||||
| Goodwill at December 31, 2025 | $ | 658,919 | $ | 267,771 | $ | 176,542 | $ | 1,103,232 | |||||||||||||||
(thousands of U.S. dollars) | Gross Carrying Amount | Accumulated Amortization | |||||||||
| As of December 31, 2025 | |||||||||||
| Finite-lived intangible assets | |||||||||||
| Customer relationships | $ | 167,313 | $ | 84,083 | |||||||
| Proprietary technology | 37,775 | 19,253 | |||||||||
| Trade names | 2,400 | 2,000 | |||||||||
| Land-use rights | 8,861 | 2,313 | |||||||||
| Sealed source and supply agreements | 168,740 | 91,405 | |||||||||
| Other | 900 | 790 | |||||||||
Total finite-lived intangible assets | 385,989 | 199,844 | |||||||||
| Indefinite-lived intangible assets | |||||||||||
Regulatory licenses and other(a) | 76,064 | — | |||||||||
| Trade names / trademarks | 26,018 | — | |||||||||
Total indefinite-lived intangible assets | 102,082 | — | |||||||||
Total | $ | 488,071 | $ | 199,844 | |||||||
| As of December 31, 2024 | Gross Carrying Amount | Accumulated Amortization | |||||||||
| Finite-lived intangible assets | |||||||||||
| Customer relationships | $ | 646,965 | $ | 537,871 | |||||||
| Proprietary technology | 73,464 | 52,976 | |||||||||
| Trade names | 2,531 | 1,651 | |||||||||
| Land-use rights | 8,493 | 2,008 | |||||||||
| Sealed source and supply agreements | 192,630 | 110,668 | |||||||||
| Other | 4,344 | 3,655 | |||||||||
Total finite-lived intangible assets | 928,427 | 708,829 | |||||||||
| Indefinite-lived intangible assets | |||||||||||
Regulatory licenses and other(a) | 72,550 | — | |||||||||
| Trade names / trademarks | 25,505 | — | |||||||||
Total indefinite-lived intangible assets | 98,055 | — | |||||||||
Total | $ | 1,026,482 | $ | 708,829 | |||||||
(thousands of U.S. dollars) | |||||
| 2026 | $ | 22,161 | |||
| 2027 | 21,084 | ||||
| 2028 | 20,537 | ||||
| 2029 | 20,427 | ||||
| 2030 | 20,427 | ||||
| Thereafter | 81,509 | ||||
| Total | $ | 186,145 | |||
(in years) | Weighted average remaining amortization period | ||||
| Customer relationships | 9.3 | ||||
| Proprietary technology | 9.8 | ||||
| Trade names | 0.8 | ||||
| Land-use rights | 30.7 | ||||
| Sealed source and supply agreements | 9.0 | ||||
| Other | 0.8 | ||||
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.