10-Q 1 avtr-20210930.htm 10-Q avtr-20210930
false000172248212-312021Q300017224822021-01-012021-09-300001722482us-gaap:CommonStockMember2021-01-012021-09-300001722482us-gaap:PreferredStockMember2021-01-012021-09-30xbrli:shares00017224822021-10-20iso4217:USD00017224822021-09-3000017224822020-12-3100017224822021-07-012021-09-3000017224822020-07-012020-09-3000017224822020-01-012020-09-30iso4217:USDxbrli:shares0001722482us-gaap:PreferredStockIncludingAdditionalPaidInCapitalMember2021-06-300001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-06-300001722482us-gaap:RetainedEarningsMember2021-06-300001722482us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-06-3000017224822021-06-300001722482us-gaap:RetainedEarningsMember2021-07-012021-09-300001722482us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-07-012021-09-300001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-07-012021-09-300001722482us-gaap:PreferredStockIncludingAdditionalPaidInCapitalMember2021-09-300001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-09-300001722482us-gaap:RetainedEarningsMember2021-09-300001722482us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-09-300001722482us-gaap:PreferredStockIncludingAdditionalPaidInCapitalMember2020-06-300001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-06-300001722482us-gaap:RetainedEarningsMember2020-06-300001722482us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-06-3000017224822020-06-300001722482us-gaap:RetainedEarningsMember2020-07-012020-09-300001722482us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-07-012020-09-300001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-07-012020-09-300001722482us-gaap:PreferredStockIncludingAdditionalPaidInCapitalMember2020-09-300001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-09-300001722482us-gaap:RetainedEarningsMember2020-09-300001722482us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-09-3000017224822020-09-300001722482us-gaap:PreferredStockIncludingAdditionalPaidInCapitalMember2020-12-310001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-12-310001722482us-gaap:RetainedEarningsMember2020-12-310001722482us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001722482us-gaap:RetainedEarningsMember2021-01-012021-09-300001722482us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-09-300001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-01-012021-09-300001722482us-gaap:PreferredStockIncludingAdditionalPaidInCapitalMember2019-12-310001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2019-12-310001722482us-gaap:RetainedEarningsMember2019-12-310001722482us-gaap:AccumulatedOtherComprehensiveIncomeMember2019-12-3100017224822019-12-310001722482srt:CumulativeEffectPeriodOfAdoptionAdjustmentMemberus-gaap:RetainedEarningsMember2019-12-310001722482srt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2019-12-310001722482us-gaap:RetainedEarningsMember2020-01-012020-09-300001722482us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-01-012020-09-300001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-01-012020-09-300001722482us-gaap:CommonStockMemberavtr:SecondaryOfferingMember2021-09-152021-09-150001722482us-gaap:CommonStockMemberavtr:SecondaryOfferingMember2021-09-150001722482avtr:MasterflexBioprocessingMembersrt:ScenarioForecastMember2021-11-012021-11-010001722482avtr:ProprietaryMaterialsAndConsumablesMembersrt:ScenarioPreviouslyReportedMember2020-07-012020-09-300001722482srt:RestatementAdjustmentMemberavtr:ProprietaryMaterialsAndConsumablesMember2020-07-012020-09-300001722482avtr:ProprietaryMaterialsAndConsumablesMember2020-07-012020-09-300001722482avtr:ProprietaryMaterialsAndConsumablesMembersrt:ScenarioPreviouslyReportedMember2020-01-012020-09-300001722482srt:RestatementAdjustmentMemberavtr:ProprietaryMaterialsAndConsumablesMember2020-01-012020-09-300001722482avtr:ProprietaryMaterialsAndConsumablesMember2020-01-012020-09-300001722482srt:ScenarioPreviouslyReportedMemberavtr:ThirdPartyMaterialsAndConsumablesMember2020-07-012020-09-300001722482srt:RestatementAdjustmentMemberavtr:ThirdPartyMaterialsAndConsumablesMember2020-07-012020-09-300001722482avtr:ThirdPartyMaterialsAndConsumablesMember2020-07-012020-09-300001722482srt:ScenarioPreviouslyReportedMemberavtr:ThirdPartyMaterialsAndConsumablesMember2020-01-012020-09-300001722482srt:RestatementAdjustmentMemberavtr:ThirdPartyMaterialsAndConsumablesMember2020-01-012020-09-300001722482avtr:ThirdPartyMaterialsAndConsumablesMember2020-01-012020-09-300001722482srt:ScenarioPreviouslyReportedMemberavtr:ServicesAndSpecialtyProcurementMember2020-07-012020-09-300001722482srt:RestatementAdjustmentMemberavtr:ServicesAndSpecialtyProcurementMember2020-07-012020-09-300001722482avtr:ServicesAndSpecialtyProcurementMember2020-07-012020-09-300001722482srt:ScenarioPreviouslyReportedMemberavtr:ServicesAndSpecialtyProcurementMember2020-01-012020-09-300001722482srt:RestatementAdjustmentMemberavtr:ServicesAndSpecialtyProcurementMember2020-01-012020-09-300001722482avtr:ServicesAndSpecialtyProcurementMember2020-01-012020-09-300001722482srt:ScenarioPreviouslyReportedMemberavtr:EquipmentAndInstrumentationMember2020-07-012020-09-300001722482srt:RestatementAdjustmentMemberavtr:EquipmentAndInstrumentationMember2020-07-012020-09-300001722482avtr:EquipmentAndInstrumentationMember2020-07-012020-09-300001722482srt:ScenarioPreviouslyReportedMemberavtr:EquipmentAndInstrumentationMember2020-01-012020-09-300001722482srt:RestatementAdjustmentMemberavtr:EquipmentAndInstrumentationMember2020-01-012020-09-300001722482avtr:EquipmentAndInstrumentationMember2020-01-012020-09-300001722482srt:ScenarioPreviouslyReportedMember2020-07-012020-09-300001722482srt:RestatementAdjustmentMember2020-07-012020-09-300001722482srt:ScenarioPreviouslyReportedMember2020-01-012020-09-300001722482srt:RestatementAdjustmentMember2020-01-012020-09-300001722482avtr:RitterGmbHMember2021-06-102021-06-100001722482avtr:RitterGmbHMemberavtr:SeniorSecuredTermLoanFacilityMemberus-gaap:SecuredDebtMember2021-06-1000017224822021-06-102021-06-100001722482avtr:RitterGmbHMember2021-06-100001722482us-gaap:CustomerRelationshipsMemberavtr:RitterGmbHMember2021-06-100001722482us-gaap:CustomerRelationshipsMemberavtr:RitterGmbHMember2021-06-102021-06-100001722482avtr:RitterGmbHMemberus-gaap:DevelopedTechnologyRightsMember2021-06-100001722482avtr:RitterGmbHMemberus-gaap:DevelopedTechnologyRightsMember2021-06-102021-06-100001722482avtr:RitterGmbHMember2021-07-012021-09-300001722482avtr:RitterGmbHMember2021-01-012021-09-300001722482avtr:RitterGmbHMember2020-07-012020-09-300001722482avtr:RitterGmbHMember2020-01-012020-09-300001722482us-gaap:ConvertiblePreferredStockMember2020-07-012020-09-300001722482us-gaap:ConvertiblePreferredStockMember2020-01-012020-09-300001722482us-gaap:ConvertiblePreferredStockMemberus-gaap:StockOptionMember2020-07-012020-09-300001722482us-gaap:ConvertiblePreferredStockMemberus-gaap:RestrictedStockMember2020-07-012020-09-300001722482us-gaap:PreferredStockMemberus-gaap:ConvertiblePreferredStockMember2020-07-012020-09-300001722482avtr:AmericasSegmentMember2021-07-012021-09-300001722482avtr:AmericasSegmentMember2020-07-012020-09-300001722482avtr:AmericasSegmentMember2021-01-012021-09-300001722482avtr:AmericasSegmentMember2020-01-012020-09-300001722482avtr:EuropeSegmentMember2021-07-012021-09-300001722482avtr:EuropeSegmentMember2020-07-012020-09-300001722482avtr:EuropeSegmentMember2021-01-012021-09-300001722482avtr:EuropeSegmentMember2020-01-012020-09-300001722482avtr:AmeaMember2021-07-012021-09-300001722482avtr:AmeaMember2020-07-012020-09-300001722482avtr:AmeaMember2021-01-012021-09-300001722482avtr:AmeaMember2020-01-012020-09-300001722482us-gaap:CorporateNonSegmentMember2021-07-012021-09-300001722482us-gaap:CorporateNonSegmentMember2020-07-012020-09-300001722482us-gaap:CorporateNonSegmentMember2021-01-012021-09-300001722482us-gaap:CorporateNonSegmentMember2020-01-012020-09-300001722482avtr:ProprietaryMaterialsAndConsumablesMember2021-07-012021-09-300001722482avtr:ProprietaryMaterialsAndConsumablesMember2021-01-012021-09-300001722482avtr:ThirdPartyMaterialsAndConsumablesMember2021-07-012021-09-300001722482avtr:ThirdPartyMaterialsAndConsumablesMember2021-01-012021-09-300001722482avtr:ServicesAndSpecialtyProcurementMember2021-07-012021-09-300001722482avtr:ServicesAndSpecialtyProcurementMember2021-01-012021-09-300001722482avtr:EquipmentAndInstrumentationMember2021-07-012021-09-300001722482avtr:EquipmentAndInstrumentationMember2021-01-012021-09-300001722482us-gaap:CustomerRelationshipsMember2021-09-300001722482us-gaap:CustomerRelationshipsMember2020-12-310001722482us-gaap:TradeNamesMember2021-09-300001722482us-gaap:TradeNamesMember2020-12-310001722482us-gaap:OtherIntangibleAssetsMember2021-09-300001722482us-gaap:OtherIntangibleAssetsMember2020-12-310001722482us-gaap:EnvironmentalIssueMemberstpr:NJ2021-09-30xbrli:pure0001722482us-gaap:EnvironmentalIssueMembersrt:MinimumMemberstpr:NJ2021-09-300001722482srt:MaximumMemberus-gaap:EnvironmentalIssueMemberstpr:NJ2021-09-300001722482country:PLus-gaap:EnvironmentalIssueMember2021-09-300001722482us-gaap:SecuredDebtMember2021-01-012021-09-300001722482us-gaap:SecuredDebtMember2021-09-300001722482us-gaap:SecuredDebtMember2020-12-310001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:EUR2021-01-012021-09-300001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:EUR2021-09-300001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:EUR2020-12-310001722482us-gaap:LineOfCreditMemberavtr:MediumTermNotes2Point25PercentEUROTermLoanMembercurrency:EUR2021-01-012021-09-300001722482us-gaap:LineOfCreditMemberavtr:MediumTermNotes2Point25PercentEUROTermLoanMembercurrency:EUR2021-09-300001722482us-gaap:LineOfCreditMemberavtr:MediumTermNotes2Point25PercentEUROTermLoanMembercurrency:EUR2020-12-310001722482us-gaap:LineOfCreditMemberavtr:MediumTermNotes2Point75PercentEUROTermLoanMembercurrency:EUR2021-01-012021-09-300001722482us-gaap:LineOfCreditMemberavtr:MediumTermNotes2Point75PercentEUROTermLoanMembercurrency:EUR2021-09-300001722482us-gaap:LineOfCreditMemberavtr:MediumTermNotes2Point75PercentEUROTermLoanMembercurrency:EUR2020-12-310001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:USD2021-01-012021-09-300001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:USD2021-09-300001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:USD2020-12-310001722482us-gaap:LineOfCreditMembercurrency:USDavtr:MediumTermNotes2Point25PercentUSDTermLoanMember2021-01-012021-09-300001722482us-gaap:LineOfCreditMembercurrency:USDavtr:MediumTermNotes2Point25PercentUSDTermLoanMember2021-09-300001722482us-gaap:LineOfCreditMembercurrency:USDavtr:MediumTermNotes2Point25PercentUSDTermLoanMember2020-12-310001722482us-gaap:SeniorNotesMemberavtr:TwoPointSixHundredAndTwentyFivePercentSecuredMemberMember2021-09-300001722482us-gaap:SeniorNotesMemberavtr:TwoPointSixHundredAndTwentyFivePercentSecuredMemberMember2020-12-310001722482avtr:ThreePointEightHundredAndSeventyFivePercentUnsecuredMemberMemberus-gaap:SeniorNotesMember2021-09-300001722482avtr:ThreePointEightHundredAndSeventyFivePercentUnsecuredMemberMemberus-gaap:SeniorNotesMember2020-12-310001722482avtr:SeniorUnsecuredNotes4Point625PercentDueJuly152028Memberus-gaap:SeniorNotesMember2021-09-300001722482avtr:SeniorUnsecuredNotes4Point625PercentDueJuly152028Memberus-gaap:SeniorNotesMember2020-12-310001722482us-gaap:CapitalLeaseObligationsMember2021-09-300001722482us-gaap:CapitalLeaseObligationsMember2020-12-310001722482avtr:OtherDebtMember2021-09-300001722482avtr:OtherDebtMember2020-12-310001722482us-gaap:LineOfCreditMemberus-gaap:RevolvingCreditFacilityMember2021-09-300001722482us-gaap:LineOfCreditMemberavtr:MasterflexBioprocessingMember2021-09-070001722482avtr:MasterflexBioprocessingMemberavtr:SeniorNotes3Point875PercentDueNovember2029Member2021-09-070001722482avtr:MasterflexBioprocessingMemberavtr:SeniorNotes3Point875PercentDueNovember2029Member2021-09-072021-09-070001722482avtr:MasterflexBioprocessingMemberavtr:MediumTermNotes2Point25PercentUSDTermLoanMember2021-09-070001722482us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:LineOfCreditMembersrt:MinimumMemberus-gaap:MediumTermNotesMembercurrency:USD2021-09-300001722482us-gaap:LondonInterbankOfferedRateLIBORMemberus-gaap:LineOfCreditMembersrt:MinimumMemberus-gaap:MediumTermNotesMembercurrency:USD2021-07-070001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:USD2021-04-012021-06-300001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:EUR2021-04-012021-06-300001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMember2021-04-012021-06-30iso4217:EUR0001722482us-gaap:LineOfCreditMemberavtr:MediumTermNotes2Point25PercentEUROTermLoanMembercurrency:EUR2021-06-100001722482us-gaap:LineOfCreditMemberavtr:MediumTermNotes2Point75PercentEUROTermLoanMembercurrency:EUR2021-06-100001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:EUR2021-06-102021-06-100001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:EUR2021-07-012021-09-300001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:USD2021-01-012021-03-310001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMembercurrency:EUR2021-01-012021-03-310001722482us-gaap:LineOfCreditMemberus-gaap:MediumTermNotesMember2021-01-012021-03-310001722482us-gaap:AccumulatedTranslationAdjustmentMember2021-06-300001722482us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-06-300001722482us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-06-300001722482us-gaap:AccumulatedTranslationAdjustmentMember2021-07-012021-09-300001722482us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-07-012021-09-300001722482us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-07-012021-09-300001722482us-gaap:AccumulatedTranslationAdjustmentMember2021-09-300001722482us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-09-300001722482us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-09-300001722482us-gaap:AccumulatedTranslationAdjustmentMember2020-06-300001722482us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-06-300001722482us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-06-300001722482us-gaap:AccumulatedTranslationAdjustmentMember2020-07-012020-09-300001722482us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-07-012020-09-300001722482us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-07-012020-09-300001722482us-gaap:AccumulatedTranslationAdjustmentMember2020-09-300001722482us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-09-300001722482us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-09-300001722482us-gaap:AccumulatedTranslationAdjustmentMember2020-12-310001722482us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-12-310001722482us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-12-310001722482us-gaap:AccumulatedTranslationAdjustmentMember2021-01-012021-09-300001722482us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2021-01-012021-09-300001722482us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2021-01-012021-09-300001722482us-gaap:AccumulatedTranslationAdjustmentMember2019-12-310001722482us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2019-12-310001722482us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2019-12-310001722482us-gaap:AccumulatedTranslationAdjustmentMember2020-01-012020-09-300001722482us-gaap:AccumulatedNetGainLossFromDesignatedOrQualifyingCashFlowHedgesMember2020-01-012020-09-300001722482us-gaap:AccumulatedDefinedBenefitPlansAdjustmentMember2020-01-012020-09-300001722482us-gaap:EmployeeStockOptionMember2021-07-012021-09-300001722482us-gaap:EmployeeStockOptionMember2020-07-012020-09-300001722482us-gaap:EmployeeStockOptionMember2021-01-012021-09-300001722482us-gaap:EmployeeStockOptionMember2020-01-012020-09-300001722482us-gaap:RestrictedStockUnitsRSUMember2021-07-012021-09-300001722482us-gaap:RestrictedStockUnitsRSUMember2020-07-012020-09-300001722482us-gaap:RestrictedStockUnitsRSUMember2021-01-012021-09-300001722482us-gaap:RestrictedStockUnitsRSUMember2020-01-012020-09-300001722482avtr:OptionholderAwardsMember2021-07-012021-09-300001722482avtr:OptionholderAwardsMember2020-07-012020-09-300001722482avtr:OptionholderAwardsMember2021-01-012021-09-300001722482avtr:OptionholderAwardsMember2020-01-012020-09-300001722482avtr:OtherStockBasedAwardMember2021-07-012021-09-300001722482avtr:OtherStockBasedAwardMember2020-07-012020-09-300001722482avtr:OtherStockBasedAwardMember2021-01-012021-09-300001722482avtr:OtherStockBasedAwardMember2020-01-012020-09-300001722482us-gaap:AdditionalPaidInCapitalMember2021-07-012021-09-300001722482us-gaap:AdditionalPaidInCapitalMember2020-07-012020-09-300001722482us-gaap:AdditionalPaidInCapitalMember2021-01-012021-09-300001722482us-gaap:AdditionalPaidInCapitalMember2020-01-012020-09-300001722482us-gaap:LiabilityMember2021-07-012021-09-300001722482us-gaap:LiabilityMember2020-07-012020-09-300001722482us-gaap:LiabilityMember2021-01-012021-09-300001722482us-gaap:LiabilityMember2020-01-012020-09-300001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2020-12-310001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-01-012021-09-300001722482us-gaap:CommonStockIncludingAdditionalPaidInCapitalMember2021-09-300001722482srt:MaximumMemberus-gaap:EmployeeStockOptionMember2021-01-012021-09-300001722482us-gaap:RestrictedStockUnitsRSUMember2020-12-310001722482us-gaap:RestrictedStockUnitsRSUMember2021-09-300001722482us-gaap:RestrictedStockUnitsRSUMembersrt:MaximumMember2021-01-012021-09-300001722482us-gaap:RestrictedStockUnitsRSUMembersrt:MinimumMember2021-01-012021-09-300001722482avtr:GoldmanSachsMember2021-01-012021-09-300001722482us-gaap:ForeignExchangeContractMemberavtr:ThreePointEightHundredAndSeventyFivePercentUnsecuredMemberMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-09-300001722482avtr:ThreePointEightHundredAndSeventyFivePercentUnsecuredMemberMemberus-gaap:DesignatedAsHedgingInstrumentMemberavtr:ForeignCurrencyDenominatedDebtMember2021-09-300001722482avtr:ThreePointEightHundredAndSeventyFivePercentUnsecuredMemberMemberus-gaap:DesignatedAsHedgingInstrumentMemberavtr:ForeignCurrencyDenominatedDebtMember2020-12-310001722482avtr:ThreePointEightHundredAndSeventyFivePercentUnsecuredMemberMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberavtr:ForeignCurrencyDenominatedDebtMember2021-07-012021-09-300001722482avtr:ThreePointEightHundredAndSeventyFivePercentUnsecuredMemberMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberavtr:ForeignCurrencyDenominatedDebtMember2020-07-012020-09-300001722482avtr:ThreePointEightHundredAndSeventyFivePercentUnsecuredMemberMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberavtr:ForeignCurrencyDenominatedDebtMember2021-01-012021-09-300001722482avtr:ThreePointEightHundredAndSeventyFivePercentUnsecuredMemberMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:NetInvestmentHedgingMemberavtr:ForeignCurrencyDenominatedDebtMember2020-01-012020-09-300001722482avtr:ContingentConsiderationMember2020-12-310001722482avtr:ContingentConsiderationMember2019-12-310001722482avtr:ContingentConsiderationMember2021-01-012021-09-300001722482avtr:ContingentConsiderationMember2020-01-012020-09-300001722482avtr:ContingentConsiderationMember2021-09-300001722482avtr:ContingentConsiderationMember2020-09-30

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
━━━━━━━━━
FORM 10-Q
━━━━━━━━━
 QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
 TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number: 001-38912
____________________________
avtr-20210930_g1.jpg
Avantor, Inc.
(Exact name of registrant as specified in its charter)
___________________________________
Delaware82-2758923
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
Radnor Corporate Center, Building One, Suite 200
100 Matsonford Road
Radnor, Pennsylvania 19087
(Address of principal executive offices) (zip code)
(610) 386-1700
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, $0.01 par valueAVTRNew York Stock Exchange
6.250% Series A Mandatory Convertible Preferred Stock, $0.01 par valueAVTR PRANew York Stock Exchange




Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. ☒ Yes ☐ No
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). ☒ Yes ☐ No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act. ☒ Large Accelerated Filer ☐ Accelerated Filer ☐ Non-accelerated Filer  Smaller reporting company  Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☒ No
On October 20, 2021, 609,452,726 shares of common stock, $0.01 par value per share, were outstanding.



Avantor, Inc. and subsidiaries
Form 10-Q for the quarterly period ended September 30, 2021

i

Glossary
Description
we, us, ourAvantor, Inc. and its subsidiaries
2019 Planthe Avantor, Inc. 2019 Equity Incentive Plan, a stock-based compensation plan
Adjusted EBITDAour earnings or loss before interest, taxes, depreciation, amortization and certain other adjustments
Annual Reportour annual report on Form 10-K for the year ended December 31, 2020
AMEAAsia, Middle-East and Africa
AOCIaccumulated other comprehensive income or loss
CERCLAComprehensive Environmental Response, Compensation, and Liability Act
cGMPCurrent Good Manufacturing Practice
COVID-19Coronavirus disease of 2019
double-digitgreater than 10%
EURIBORthe basic rate of interest used in lending between banks on the European Union interbank market
FASBthe Financial Accounting Standards Board of the United States
GAAPUnited States generally accepted accounting principles
high single-digit7 - 9%
LIBORthe basic rate of interest used in lending between banks on the London interbank market
low single-digit1 - 3%
MCPS6.250% Series A Mandatory Convertible Preferred Stock
mid single-digit4 - 6%
OEMoriginal engineering manufacturers
PPEpersonal protective equipment
RSUrestricted stock unit
SECthe United States Securities and Exchange Commission
SG&A expensesselling, general and administrative expenses
Specialty procurementproduct sales related to customer procurement services
VWRVWR Corporation and its subsidiaries, a company we acquired in November 2017

ii

Cautionary factors regarding forward-looking statements
This report contains forward-looking statements. All statements other than statements of historical fact included in this report are forward-looking statements. Forward-looking statements discuss our current expectations and projections relating to our financial condition, results of operations, plans, objectives, future performance and business. These statements may be preceded by, followed by or include the words “aim,” “anticipate,” “believe,” “estimate,” “expect,” “forecast,” “intend,” “likely,” “outlook,” “plan,” “potential,” “project,” “projection,” “seek,” “can,” “could,” “may,” “should,” “would,” “will,” the negatives thereof and other words and terms of similar meaning.
Forward-looking statements are inherently subject to risks, uncertainties and assumptions; they are not guarantees of performance. You should not place undue reliance on these statements. We have based these forward-looking statements on our current expectations and projections about future events. Although we believe that our assumptions made in connection with the forward-looking statements are reasonable, we cannot assure you that the assumptions and expectations will prove to be correct.
You should understand that the following important factors, in addition to those discussed under “Risk Factors” in our Annual Report, as such risk factors may be updated from time to time in our periodic filings with the SEC and in this report, could affect our future results and could cause those results or other outcomes to differ materially from those expressed or implied in our forward-looking statements:
disruptions to our operations;
competition from other industry providers;
our ability to implement our growth strategy;
our ability to anticipate and respond to changing industry trends;
adverse trends in consumer, business, and government spending;
our dependence on sole or limited sources for some essential materials and components;
our ability to successfully value and integrate acquired businesses;
our products’ satisfaction of applicable quality criteria, specifications and performance standards;
our ability to maintain our relationships with key customers;
our ability to maintain our relationships with distributors;
our ability to maintain consistent purchase volumes under purchase orders;
our ability to maintain and develop relationships with drug manufacturers and contract manufacturing organizations;
the impact of new laws, regulations, or other industry standards;
changes in the interest rate environment that increase interest on our borrowings;
iii

adverse impacts from currency exchange rates or currency controls imposed by any government in major areas where we operate or otherwise;
our ability to implement and improve processing systems and prevent a compromise of our information systems;
our ability to protect our intellectual property and avoid third-party infringement claims;
exposure to product liability and other claims in the ordinary course of business;
our ability to develop new products responsive to the markets we serve;
the availability of raw materials;
our ability to avoid negative outcomes related to the use of chemicals;
our ability to maintain highly skilled employees;
adverse impact of impairment charges on our goodwill and other intangible assets;
fluctuations and uncertainties related to doing business outside the United States;
our ability to obtain and maintain required regulatory clearances or approvals may constrain the commercialization of submitted products;
our ability to comply with environmental, health and safety laws and regulations, or the impact of any liability or obligation imposed under such laws or regulations;
our indebtedness could adversely affect our financial condition and prevent us from fulfilling our debt or contractual obligations;
our ability to generate sufficient cash flows or access sufficient additional capital to meet our debt obligations or to fund our other liquidity needs; and
our ability to maintain an adequate system of internal control over financial reporting.
All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by the foregoing cautionary statements. In addition, all forward-looking statements speak only as of the date of this report. We undertake no obligations to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise other than as required under the federal securities laws.
iv

PART I — FINANCIAL INFORMATION
Item 1.    Financial statements
Avantor, Inc. and subsidiaries

1

Avantor, Inc. and subsidiaries
Unaudited condensed consolidated balance sheets
(in millions)
September 30, 2021
December 31, 2020
Assets
Current assets:
Cash and cash equivalents$1,426.1 $286.6 
Accounts receivable, net of allowances of $26.3 and $26.2
1,184.7 1,113.3 
Inventory844.0 739.6 
Other current assets109.8 91.4 
Total current assets3,564.6 2,230.9 
Property, plant and equipment, net of accumulated depreciation of $429.3 and $388.3
682.7 549.9 
Other intangible assets, net (see note 8)
4,205.6 4,048.8 
Goodwill3,506.3 2,860.2 
Other assets240.0 216.7 
Total assets$12,199.2 $9,906.5 
Liabilities and stockholders’ equity
Current liabilities:
Current portion of debt$37.0 $26.4 
Accounts payable698.8 678.9 
Employee-related liabilities176.8 179.3 
Accrued interest27.0 44.5 
Other current liabilities380.5 313.6 
Total current liabilities1,320.1 1,242.7 
Debt, net of current portion5,549.8 4,867.5 
Deferred income tax liabilities821.5 723.9 
Other liabilities403.0 398.1 
Total liabilities8,094.4 7,232.2 
Commitments and contingencies (see note 9)
Stockholders’ equity:
MCPS including paid-in capital, 20.7 shares outstanding
1,003.7 1,003.7 
Common stock including paid-in capital, 609.4 and 580.1 shares outstanding
2,749.3 1,737.6 
Accumulated earnings (deficit)
389.9 (88.7)
Accumulated other comprehensive (loss) income
(38.1)21.7 
Total stockholders’ equity4,104.8 2,674.3 
Total liabilities and stockholders’ equity$12,199.2 $9,906.5 

See accompanying notes to the unaudited condensed consolidated financial statements.
2

Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of operations
(in millions, except per share data)
Three months ended September 30,
Nine months ended September 30,
2021
2020
20212020
Net sales$1,834.3 $1,605.0 $5,478.5 $4,602.7 
Cost of sales1,218.4 1,098.6 3,623.3 3,103.8 
Gross profit615.9 506.4 1,855.2 1,498.9 
Selling, general and administrative expenses378.7 329.2 1,097.0 996.7 
Operating income
237.2 177.2 758.2 502.2 
Interest expense(54.1)(65.2)(156.6)(251.8)
Loss on extinguishment of debt (226.4)(8.4)(226.4)
Other income, net
3.4 6.6 19.8 11.6 
Income (loss) before income taxes
186.5 (107.8)613.0 35.6 
Income tax (expense) benefit
(29.7)65.6 (134.4)29.4 
Net income (loss)
156.8 (42.2)478.6 65.0 
Accumulation of yield on preferred stock(16.1)(16.1)(48.4)(48.4)
Net income (loss) available to common stockholders
$140.7 $(58.3)$430.2 $16.6 
Earnings (loss) per share:
Basic$0.24 $(0.10)$0.74 $0.03 
Diluted$0.24 $(0.10)$0.73 $0.03 
Weighted average shares outstanding:
Basic588.5 577.2 584.1 575.5 
Diluted598.1 577.2 593.0 582.5 
See accompanying notes to the unaudited condensed consolidated financial statements.
3

Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of comprehensive income or loss
(in millions)
Three months ended September 30,
Nine months ended September 30,
2021
2020
20212020
Net income (loss)
$156.8 $(42.2)$478.6 $65.0 
Other comprehensive (loss) income:
Foreign currency translation — unrealized (loss) gain
(38.2)55.1 (55.2)31.0 
Derivative instruments:

Unrealized gain (loss)
 0.3 (2.0)2.6 
Reclassification of loss (gain) into earnings
0.9 (0.7)3.0 (1.5)
Adjustments to defined benefit plans0.6 (0.7)1.0 (0.7)
Other comprehensive (loss) income before income taxes
(36.7)54.0 (53.2)31.4 
Income tax effect(2.8)0.1 (6.6)(0.2)
Other comprehensive (loss) income
(39.5)54.1 (59.8)31.2 
Comprehensive income
$117.3 $11.9 $418.8 $96.2 
See accompanying notes to the unaudited condensed consolidated financial statements.
4

Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of stockholders’ equity
(in millions)
Stockholders’ equity
MCPS including paid-in capitalCommon stock including paid-in capitalAccumulated earnings (deficit)AOCITotal
SharesAmountSharesAmount
Balance at June 30, 2021
20.7 $1,003.7 583.7 $1,747.7 $233.1 $1.4 $2,985.9 
Comprehensive income (loss)
— — — — 156.8 (39.5)117.3 
Issuance of stock, net of issuance costs— — 23.8 967.0 — — 967.0 
Stock-based compensation expense— — — 11.9 — — 11.9 
Accumulation of yield on preferred stock— — — (16.1)— — (16.1)
Stock option exercises and other common stock transactions— — 1.9 38.8 — — 38.8 
Balance at September 30, 2021
20.7 $1,003.7 609.4 $2,749.3 $389.9 $(38.1)$4,104.8 
Balance at June 30, 2020
20.7 $1,003.7 576.3 $1,744.0 $(98.1)$(108.8)$2,540.8 
Comprehensive (loss) income
— — — — (42.2)54.1 11.9 
Issuance of stock, net of issuance costs— — — — — — — 
Stock-based compensation expense— — — 10.6 — — 10.6 
Accumulation of yield on preferred stock— — — (16.1)— — (16.1)
Stock option exercises and other common stock transactions— — 1.7 5.1 — — 5.1 
Balance at September 30, 2020
20.7 $1,003.7 578.0 $1,743.6 $(140.3)$(54.7)$2,552.3 
See accompanying notes to the unaudited condensed consolidated financial statements.
5

Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of stockholders’ equity (continued)
(in millions)
Stockholders’ equity
MCPS including paid-in capitalCommon stock including paid-in capitalAccumulated earnings (deficit)AOCITotal
SharesAmountSharesAmount
Balance at December 31, 2020
20.7 $1,003.7 580.1 $1,737.6 $(88.7)$21.7 $2,674.3 
Comprehensive income (loss)
— — — — 478.6 (59.8)418.8 
Issuance of stock, net of issuance costs— — 23.8 967.0 — — 967.0 
Stock-based compensation expense— — — 34.2 — — 34.2 
Accumulation of yield on preferred stock— — (48.4)— — (48.4)
Stock option exercises and other common stock transactions— — 5.5 58.9 — — 58.9 
Balance at September 30, 2021
20.7 $1,003.7 609.4 $2,749.3 $389.9 $(38.1)$4,104.8 
Balance at December 31, 2019
20.7 $1,003.7 572.8 $1,748.1 $(203.7)$(85.9)$2,462.2 
Impact of new accounting standard— — — — (1.6)— (1.6)
Comprehensive (loss) income
— — — — 65.0 31.2 96.2 
Issuance of stock, net of issuance costs— — — — — — — 
Stock-based compensation expense— — — 30.1 — — 30.1 
Accumulation of yield on preferred stock— — — (48.4)— — (48.4)
Stock option exercises and other common stock transactions— — 5.2 13.8 — — 13.8 
Balance at September 30, 2020
20.7 $1,003.7 578.0 $1,743.6 $(140.3)$(54.7)$2,552.3 
See accompanying notes to the unaudited condensed consolidated financial statements.
6

Avantor, Inc. and subsidiaries
Unaudited condensed consolidated statements of cash flows
(in millions)
Nine months ended September 30,
2021
2020
Cash flows from operating activities:
Net income
$478.6 $65.0 
Reconciling adjustments:
Depreciation and amortization275.1 293.4 
Stock-based compensation expense
37.0 31.4 
Provision for accounts receivable and inventory33.5 54.9 
Deferred income tax benefit
(24.0)(90.7)
Amortization of deferred financing costs11.7 19.0 
Loss on extinguishment of debt8.4 226.4 
Foreign currency remeasurement loss (gain)5.4 (1.2)
Changes in assets and liabilities:
Accounts receivable(66.5)(50.6)
Inventory(117.8)(56.9)
Accounts payable1.9 67.8 
Accrued interest(17.5)(10.7)
Other assets and liabilities20.5 75.3 
Other, net6.3 0.7 
Net cash provided by operating activities
652.6 623.8 
Cash flows from investing activities:
Capital expenditures(71.1)(41.4)
Cash paid for acquisitions, net of cash acquired(1,168.9) 
Other1.8 1.1 
Net cash used in investing activities
(1,238.2)(40.3)
Cash flows from financing activities:
Debt borrowings1,134.6 2,001.6 
Debt repayments(323.1)(2,171.5)
Payments of debt financing costs(22.5)(198.0)
Proceeds from issuance of stock, net of issuance costs967.0  
Payments of dividends on preferred stock(48.4)(48.4)
Proceeds received from exercise of stock options76.4 13.8 
Shares repurchased to satisfy employee tax obligations for vested stock-based awards(25.8) 
Net cash provided by (used in) financing activities
1,758.2 (402.5)
Effect of currency rate changes on cash(10.0)2.8 
Net change in cash and cash equivalents1,162.6 183.8 
Cash, cash equivalents and restricted cash, beginning of period289.2 189.3 
Cash, cash equivalents and restricted cash, end of period$1,451.8 $373.1 

See accompanying notes to the unaudited condensed consolidated financial statements.
7

Avantor, Inc. and subsidiaries
Notes to unaudited condensed consolidated 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 condensed consolidated financial statements have been prepared pursuant to SEC regulations whereby certain information normally included in GAAP financial statements has been condensed or omitted. The financial information presented herein reflects all adjustments (consisting only of normal, recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented. The results for interim periods are not necessarily indicative of the results to be expected for the full year.
We believe that the disclosures included herein are adequate to make the information presented not misleading in any material respect when read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report. Those audited consolidated financial statements include a summary of our significant accounting policies.
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.
Secondary equity offering
On September 15, 2021 we issued 23.81 million shares of our common stock, at a public offering price of $42.00 per share. The proceeds from this offering were $967.0 million, net of $33.0 million of offering costs. The proceeds will be used to partially finance the pending acquisition of Masterflex as discussed below.
Entry into a definitive agreement
On September 7, 2021, we entered into a definitive agreement to acquire the Masterflex bioprocessing business and related assets (collectively "Masterflex") of Antylia Scientific. The all-cash transaction is preliminarily valued at $2,900.0 million, subject to final adjustments at closing. Given anticipated tax benefits from the transaction structure, the net purchase price is approximately $2,700.0 million. We have
8

received all regulatory approvals and expect the transaction to close on or about November 1, 2021. Acquisition-related costs incurred to date are immaterial.
On June 1, 2021 and June 10, 2021, we acquired RIM Bio and Ritter GmbH and its affiliates (“Ritter GmbH”), respectively. Further details are included in note 3.
Correction of immaterial classification error
We identified and corrected an immaterial classification error between certain product sales in our previously reported net sales by product lines financial table disclosed in our segment financial information footnote included in our previously reported unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2020. The correction of this error allows for a more accurate presentation of net sales of our product lines and had no impact on our previously reported unaudited condensed consolidated financial statements as of and for the three and nine months ended September 30, 2020 other than those previously mentioned. The following table presents the impact of this correction for the three and nine months ended September 30, 2020.
(in millions)Three months ended September 30, 2020Nine months ended September 30, 2020
Previously reportedAdjustmentAs adjustedPreviously reportedAdjustmentAs adjusted
Proprietary materials & consumables$562.2 $(43.7)$518.5 $1,654.3 $(173.6)$1,480.7 
Third party materials & consumables610.0 45.3 655.3 1,764.1 170.5 1,934.6 
Services & specialty procurement215.4 (4.6)210.8 580.0 3.5 583.5 
Equipment & instrumentation217.4 3.0 220.4 604.3 (0.4)603.9 
Total$1,605.0 $ $1,605.0 $4,602.7 $ $4,602.7 
Correction of previously reported consolidated statement of cash flows
We identified and corrected an immaterial classification error in our previously reported unaudited condensed consolidated statement of cash flows for the nine months ended September 30, 2020. The correction of this error within the net cash provided by operating activities resulted in an increase in the line-item referred to as Provision for accounts receivable and inventory and a decrease in the line-item referred to as Inventory by $23.4 million, respectively, from the previously reported amounts of $31.5 million to $54.9 million and $(33.5) million to $(56.9) million, respectively. The correction of this error had no effect on our previously reported net cash provided by operating activities for the nine months ended September 30, 2020, or on any other previously reported amounts in our unaudited condensed consolidated financial statements as of and for the nine months ended September 30, 2020 other than those previously mentioned.
9

2.    New accounting standards
New tax standard
On January 1, 2021, we implemented the FASB’s new standard to simplify the accounting for income taxes, which was issued in December 2019. The adoption of this new standard did not have an impact on our financial statements.
Other
There were no other new accounting standards that we expect to have a material impact on our financial position or results of operations upon adoption.
3.    Business combinations
Ritter GmbH acquisition
On June 10, 2021, we completed the acquisition of Ritter GmbH for preliminary net cash consideration of $1,079.8 million, and contingent consideration with an initial preliminary fair value of $35.6 million. 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 will expand 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.
To fund the acquisition, we issued debt under our senior secured term loan facility in an aggregate principal amount of $1,134.6 million.
The preliminary purchase consideration was as follows:
(in millions)June 10, 2021
Cash paid at closing$1,084.5 
Cash acquired(4.7)
Preliminary net cash consideration1,079.8
Preliminary fair value of acquisition contingent consideration35.6 
Preliminary purchase price$1,115.4 

10

The contingent consideration has a maximum potential payout of $336.0 million over three years. The preliminary fair value of the contingent consideration was determined using a monte carlo simulation as further described in note 16.

The preliminary fair values of the net assets acquired on June 10, 2021 was $1,115.4 million, which included the following:
(in millions)June 10, 2021
Accounts receivable$33.3 
Inventory30.5 
Property, plant & equipment141.2 
Other intangible assets430.0 
Goodwill679.1 
Other assets and liabilities
0.9 
Accounts payable(21.5)
Accrued expenses(28.6)
Debt(20.4)
Deferred income tax liabilities(129.1)
Total net assets$1,115.4 
The assets acquired and liabilities assumed are recorded at their preliminary estimated fair values as part of our Europe operating segment as of June 10, 2021. The preliminary balances of the acquired assets and liabilities have changed from what we previously reported to reflect additional information relating to their fair values; and the preliminary purchase price allocation remains subject to change as we complete our determination of the final working capital and the fair value of the acquired assets and liabilities assumed, the impact of which could be material.
The following table summarizes the preliminary fair value of intangible assets acquired on June 10, 2021 and their related weighted average amortization period:
(in millions)Fair valueWeighted average estimated life
Customer relationships$330.0 18.0 years
Developed technology100.0 7.0 years
Total$430.0 
The goodwill represents intellectual capital and the acquired assembled workforce, none of which qualify for recognition as a separate intangible asset. Of the goodwill recognized, none is deductible for tax purposes.
Since the acquisition date, Ritter generated revenues of $49.2 million and $59.4 million during the three and nine months ended September 30, 2021, respectively.
The following unaudited pro forma combined financial information for the three and nine months ended September 30, 2021 and 2020 gives effect to the Ritter acquisition as if it had occurred on January 1, 2020. The pro forma information is presented for informational purposes only and is not necessarily
11

indicative of the results of operations that actually would have occurred under the ownership and management of the Company.
(in millions)
Three months ended September 30,
Nine months ended September 30,
2021
2020
20212020
Revenue$1,834.3 $1,643.2 $5,575.9 $4,687.7 
Net income (loss) available to common stockholders140.7 (60.1)454.2 (20.3)
Basic earnings (loss) per share0.24 (0.10)0.78 0.04 
Diluted earnings (loss) per share0.24 (0.10)0.77 0.03 
The unaudited pro forma combined financial information presented above includes the accounting effects of the Ritter acquisitions, including, to the extent applicable, amortization charges from acquired intangible assets; transaction costs; interest expense; and the related tax effects.
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 financial statements.
Acquisition-related costs of completed acquisitions
For the three and nine months ended September 30, 2021, we incurred $0 and $24.6 million in acquisition-related costs, which consist of non-recurring legal, accounting, investment banking and consulting fees incurred to complete the acquisitions of Ritter GmbH and RIM Bio. All acquisition costs are expensed in the period incurred and excluded from Adjusted EBITDA, as shown in footnote 5. These acquisition costs have been primarily recorded within the Europe and Corporate operating segments and presented in SG&A in the unaudited condensed consolidated statements of operations.
12

4.    Earnings per share
The following table presents the reconciliation of basic and diluted earnings per share for the three and nine months ended September 30, 2021:
(in millions, except per share data)
Three months ended September 30, 2021Nine months ended September 30, 2021
Earnings (numerator)Weighted average shares outstanding (denominator)Earnings per shareEarnings (numerator)Weighted average shares outstanding (denominator)Earnings per share
Basic$140.7 588.5 $0.24 $430.2 584.1 $0.74 
Dilutive effect of stock-based awards 9.6  8.9 
Diluted$140.7 598.1 $0.24 $430.2 593.0 $0.73 
For the three and nine months ended September 30, 2021, diluted earnings per share included accumulated yield on preferred stock of $16.1 million and $48.4 million, respectively, and excluded 62.9 million of common stock equivalents under the MCPS because they were anti-dilutive to the calculations.
The following table presents the reconciliation of basic and diluted earnings per share for the three and nine months ended September 30, 2020:
(in millions, except per share data)
Three months ended September 30, 2020Nine months ended September 30, 2020
Earnings (numerator)Weighted average shares outstanding (denominator)Earnings per shareEarnings (numerator)Weighted average shares outstanding (denominator)Earnings per share
Basic$(58.3)577.2 $(0.10)$16.6 575.5 $0.03 
Dilutive effect of stock-based awards   7.0 
Diluted$(58.3)577.2 $(0.10)$16.6 582.5 $0.03 
For the three months ended September 30, 2020, basic and diluted loss per share calculations were the same because there was a net loss available to common stockholders. As a result, 22.6 million of stock options, 5.2 million of restricted stock units and 62.9 million of MCPS were excluded from the calculation of diluted loss per share as their effect would be anti-dilutive.
For the nine months ended September 30, 2020, diluted earnings per share included accumulated yield of $48.4 million and excluded 62.9 million of common stock equivalents under the MCPS because they were anti-dilutive to the calculation.
13

5.    Segment financial information
We report three geographic segments based on customer location: 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 table presents information by reportable segment:
(in millions)
Three months ended September 30,
Nine months ended September 30,
2021
2020
20212020
Net sales:
Americas$1,045.0 $950.5 $3,149.9 $2,707.1 
Europe674.7 562.1 1,991.1 1,627.1 
AMEA114.6 92.4 337.5 268.5 
Total$1,834.3 $1,605.0 $5,478.5 $4,602.7 
Adjusted EBITDA:
Americas$236.3 $203.6 $740.0 $591.0 
Europe135.5 98.4 390.4 278.4 
AMEA29.5 20.9 80.5 56.8 
Corporate(42.1)(37.3)(122.0)(104.5)
Total$359.2 $285.6 $1,088.9 $821.7 
The amounts above exclude inter-segment activity because it is not material. All of the net sales for each segment are from external customers.
14

The following table presents the reconciliation of Adjusted EBITDA from net income, the nearest measurement under GAAP:
(in millions)
Three months ended September 30,
Nine months ended September 30,
2021
2020
20212020
Net income (loss)
$156.8 $(42.2)$478.6 $65.0 
Interest expense54.1 65.2 156.6 251.8 
Income tax expense (benefit)
29.7 (65.6)134.4 (29.4)
Depreciation and amortization100.0 99.1 275.1 293.4 
Loss on extinguishment of debt 226.4 8.4 226.4 
Net foreign currency (gain) loss from financing activities
(0.8)(4.1)1.2 (4.3)
Other stock-based compensation expense1.6 0.6 2.9 0.6 
Acquisition-related expenses1
3.2  27.8  
Integration-related expenses2
7.9 3.9 8.4 11.5 
Purchase accounting adjustments3
6.3  6.3  
Restructuring and severance charges4
0.4 2.3 2.2 6.7 
Receipt of disgorgement penalty5
  (13.0) 
Adjusted EBITDA$359.2 $285.6 $1,088.9 $821.7 
━━━━━━━━━
1.Represents legal, accounting, investment banking and consulting fees incurred related to completed and pending acquisitions. Generally, these expenses are incurred prior to and at the closing of acquisitions.
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 amortization of the purchase accounting adjustment we made to reflect Ritter’s acquired inventory at fair value upon acquisition, as shown in note 3 to our unaudited interim financial statements.
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 13 to our unaudited interim financial statements.
The following table presents net sales by product line:
(in millions)
Three months ended September 30,
Nine months ended September 30,
2021
2020
20212020
(6)(6)
Proprietary materials & consumables$651.2 $518.5 $1,847.2 $1,480.7 
Third party materials & consumables712.2 655.3 2,210.0 1,934.6 
Services & specialty procurement226.5 210.8 678.5 583.5 
Equipment & instrumentation244.4 220.4 742.8 603.9 
Total$1,834.3 $1,605.0 $5,478.5 $4,602.7 
━━━━━━━━━
6.     As adjusted, see note 1.
15

6.    Supplemental disclosures of cash flow information
The following tables present supplemental disclosures of cash flow information:
(in millions)
September 30, 2021
December 31, 2020
Cash and cash equivalents$1,426.1 $286.6 
Restricted cash classified as other assets25.7 2.6 
Total$1,451.8 $289.2 
At September 30, 2021, amounts included in restricted cash primarily represent funds held in escrow to satisfy a long term retention incentive related to the acquisition of Ritter GmbH.
(in millions)
Nine months ended September 30,
2021
2020
Cash flows from operating activities:
Cash paid for income taxes, net$130.2 $32.0 
Cash paid for interest, excluding financing leases154.3 248.7 
Cash paid for interest on finance leases3.8 3.9 
Cash paid under operating leases32.4 31.7 
Cash flows from financing activities:
Cash paid under finance leases3.5 3.3 
(in millions)
Nine months ended September 30,
2021
2020
Non-cash investing and financing activities:
Preliminary fair value of acquisition contingent consideration$35.6 $ 
Accrued but unpaid dividends on MCPS8.1 8.1 
7.    Inventory
The following table presents the components of inventory:
(in millions)
September 30, 2021
December 31, 2020
Merchandise inventory$496.7 $463.0 
Finished goods137.4 115.9 
Raw materials162.9 123.2 
Work in process47.0 37.5 
Total$844.0 $739.6 

16

8.    Other intangible assets
The following table presents the components of other intangible assets: