STERIS plcSTE

STERIS plc Goodwill & Intangibles Disclosure

10-KFiled May 29, 20253 min read
5. GOODWILL AND INTANGIBLE ASSETS
Changes to the carrying amount of goodwill for the years ended March 31, 2025 and 2024 were as follows:
  
Healthcare
Segment		AST SegmentLife Sciences
Segment		Total
Balance at March 31, 20232,301,273 1,396,134 181,812 3,879,219 
Goodwill acquired199,452 634 — 200,086 
Measurement period adjustments to acquired goodwill(2,573)— — (2,573)
Foreign currency translation adjustments and other2,758 (9,139)361 (6,020)
Balance at March 31, 2024$2,500,910 $1,387,629 $182,173 $4,070,712 
Goodwill acquired2,135 8,475 — 10,610 
Measurement period adjustments to acquired goodwill— (517)— (517)
Divestiture— — (11,560)(11,560)
Foreign currency translation adjustments and other6,263 19,855 315 26,433 
Balance at March 31, 2025$2,509,308 $1,415,442 $170,928 $4,095,678 
See Note 3 titled, "Business Acquisitions and Divestitures," for additional information regarding our recent business acquisitions and divestitures.
We evaluate the recoverability of recorded goodwill and indefinite-lived intangible assets annually during the third fiscal quarter, or when indicators of potential impairment exist. Our goodwill is assessed at the reporting unit level which is equivalent to the Company's reportable operating segments.
During our annual reviews for fiscal 2025, 2024, and 2023, there were no indicators that impairment of goodwill or indefinite-lived intangible assets was more likely than not.
Identifiable intangible assets are also reviewed for impairment when events and circumstances indicate that the carrying value of such assets may not be recoverable. Impaired assets are recorded at the lower of carrying value or estimated fair value. We conduct this review on an ongoing basis, and, if impairment exists, we record the loss in the Consolidated Statements of Income during that period.
When we evaluate these assets for impairment, we make certain judgments and estimates, including interpreting current economic indicators and market valuations, evaluating our strategic plans with regards to operations, historical and anticipated performance of operations, and other factors. It is possible that unfavorable developments related to these factors in the near term could result in an impairment loss relative to intangible assets. Such an impairment loss may be material to our results of operations in the period recorded.
Information regarding our intangible assets is as follows:
20252024
March 31,Gross
Carrying
Amount		Accumulated
Amortization		Gross
Carrying
Amount		Accumulated
Amortization
       Customer relationships$2,564,289 $1,067,385 $2,552,913 $863,662 
       Non-compete agreements15,064 14,984 15,511 15,234 
       Patents and technology480,303 294,059 516,457 278,492 
       Trademarks and tradenames247,902 105,053 251,098 90,362 
       Supplier relationships54,800 26,487 54,800 23,747 
       Total$3,362,358 $1,507,968 $3,390,779 $1,271,497 
    
Certain trademarks and tradenames obtained as a result of business combinations are indefinite-lived assets. The approximate carrying value of these assets at March 31, 2025 and March 31, 2024 was $14,250. We evaluate our indefinite-lived intangible assets annually during the third quarter or when evidence of potential impairment exists. No impairment was recognized for fiscal years 2025, 2024 or 2023.
Total amortization expense for intangible assets was $276,192, $268,319, and $259,676 for the years ended March 31, 2025, 2024, and 2023, respectively. Based upon the current amount of intangible assets subject to amortization, the amortization expense for each of the five succeeding fiscal years is estimated to be as follows:
  
20262027202820292030
Estimated amortization expense$259,211 $253,126 $248,088 $245,921 $243,486 
The estimated annual amortization expense presented in the preceding table has been calculated based upon March 31, 2025 currency exchange rates.
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Historical Timeline

Fiscal YearFiled
2025May 29, 2025Showing above
2024May 29, 2024
2023May 26, 2023
2022May 31, 2022
2021May 28, 2021
2020May 29, 2020
2019May 30, 2019

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.

Other Available Disclosures

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