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Nature of operations and presentation of financial statements
12 Months Ended
Dec. 31, 2020
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.
For the periods presented, all share and per share information has been adjusted for a stock split that occurred in connection with our IPO.
The financial statements reflect the adoptions of a new revenue recognition standard at January 1, 2018, a new lease standard at January 1, 2019, and a new credit losses standard at January 1, 2020. Information about these new accounting standards is disclosed in note 3.
Principles of consolidation
All intercompany balances and transactions have been eliminated from the financial statements.
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 consolidated financial statements as of and for the years ended December 31, 2019 and 2018. The correction of this error allows for a more accurate presentation of net sales of our product lines and had no impact on the Company’s previously reported consolidated financial statements for the years ended December 31, 2019 and 2018 other than those previously mentioned. The following table presents the impact of this correction for the fiscal years ended December 31, 2019 and 2018.
(in millions)Year ended December 31, 2019Year ended December 31, 2018
Previously reportedAdjustmentAs adjustedPreviously reportedAdjustmentAs adjusted
Proprietary materials & consumables$2,008.5 $(243.1)$1,765.4 $1,933.9 $(245.6)$1,688.3 
Third party materials & consumables2,395.6 188.0 2,583.6 2,364.9 206.0 2,570.9 
Services & specialty procurement735.6 43.3 778.9 663.5 32.5 696.0 
Equipment & instrumentation900.6 11.8 912.4 902.0 7.1 909.1 
Total$6,040.3 $— $6,040.3 $5,864.3 $— $5,864.3 


Correction of previously reported consolidated statement of cash flows
We identified and corrected an immaterial classification error in our previously reported consolidated statement of cash flows for the year ended December 31, 2019. 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 $13.0 million, respectively, from the previously reported amounts of $35.1 million to $48.1 million and $(71.1) million to $(84.1) million, respectively. The correction of this error had no effect on our previously reported net cash provided by operating activities for the year ended December 31, 2019 or on any previously reported amounts in our consolidated financial statements as of and for the year ended December 31, 2019 other than those previously mentioned.
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.
Global coronavirus outbreak
COVID-19 has adversely affected global economies, financial markets and the overall environment in which we do business, and the extent to which it may impact our future results of operations and overall financial performance remains uncertain.
In response to the COVID-19 outbreak, on March 27, 2020, the United States Government enacted the CARES Act, which provides financial stimulus to qualifying businesses. We expect to benefit from the provisions under the CARES Act that allow for an increased deduction of business interest for income tax purposes for fiscal years 2019 and 2020, and for the deferral of payments for certain employment taxes incurred through the end of fiscal year 2020. For the business interest deduction, we recognized a cash benefit of $28.3 million for fiscal year 2019, which we applied to our 2020 estimated tax payments. This deduction provided a $30.4 million cash benefit for fiscal year 2020.
Secondary offerings
On May 26, 2020, August 21, 2020 and November 10, 2020, we completed secondary offerings of 51.75 million, 63.89 million and 78.73 million shares of our common stock, respectively, held by certain of our stockholders at the offering prices of $16.25, $19.51 and $25.25 per share, respectively. The shares offered included the full exercise by the underwriters of their option to purchase up to 6.75 million, 8.33 million and 7.16 million additional shares of common stock, respectively. No shares were sold by us, and we received no proceeds from these offerings. Fees incurred to complete these transactions were expensed as incurred and included as a component of SG&A expense.