Goodwill and Other Intangible Assets (Tables)
|
12 Months Ended |
Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] |
|
Schedule of Goodwill |
Changes to goodwill during the years ended December 31, 2021 and 2020 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | (thousands of U.S. dollars) | Sterigenics | | Nordion | | Nelson Labs | | | | Total | Goodwill at January 1, 2020 | $ | 612,689 | | | $ | 281,890 | | | $ | 141,286 | | | | | $ | 1,035,865 | | Iotron acquisition | 69,046 | | | — | | | — | | | | | 69,046 | | Changes due to foreign currency exchange rates | 1,746 | | | 6,042 | | | 3,237 | | | | | 11,025 | | Goodwill at December 31, 2020 | 683,481 | | | 287,932 | | | 144,523 | | | | | 1,115,936 | | Iotron acquisition measurement period adjustments | (19,447) | | | — | | | — | | | | | (19,447) | | BioScience Labs acquisition | — | | | — | | | 8,354 | | | | | 8,354 | | RCA acquisition | — | | | — | | | 20,638 | | | | | 20,638 | | Changes due to foreign currency exchange rates | (3,291) | | | 973 | | | (2,843) | | | | | (5,161) | | Goodwill at December 31, 2021 | $ | 660,743 | | | $ | 288,905 | | | $ | 170,672 | | | | | $ | 1,120,320 | |
|
Schedule of Acquired Finite-Lived Intangible Assets |
Amortization of intangible assets is computed using the asset’s estimated useful lives as presented below: | | | | | | Land-use rights | 41 years | Customer contracts and related relationships | 7–20 years | Proprietary technology | 3–20 years | Trade name/trademark | 8 years | Sealed source and supply agreements | 7–20 years |
Other intangible assets consisted of the following: | | | | | | | | | | | | (thousands of U.S. dollars) | Gross Carrying Amount | | Accumulated Amortization | As of December 31, 2021 | | Finite-lived intangible assets | | | | Customer relationships | $ | 668,628 | | | $ | 365,935 | | Proprietary technology | 88,826 | | | 44,866 | | Trade names | 145 | | | 116 | | Land-use rights | 9,744 | | | 1,586 | | Sealed source and supply agreements | 241,611 | | | 109,838 | | Other | 6,454 | | | 2,166 | | Total finite-lived intangible assets | 1,015,408 | | | 524,507 | | | | | | Indefinite-lived intangible assets | | | | Regulatory licenses and other(a) | 82,110 | | | — | | Trade names / trademarks | 25,833 | | | — | | Total indefinite-lived intangible assets | 107,943 | | | — | | Total | $ | 1,123,351 | | | $ | 524,507 | |
| | | | | | | | | | | | As of December 31, 2020 | Gross Carrying Amount | | Accumulated Amortization | Finite-lived intangible assets | | | | Customer relationships | $ | 634,454 | | | $ | 309,428 | | Proprietary technology | 90,964 | | | 38,075 | | Trade names | 156 | | | 105 | | Land-use rights | 9,489 | | | 1,311 | | Sealed source and supply agreements | 240,791 | | | 92,953 | | Other | 1,937 | | | 519 | | Total finite-lived intangible assets | 977,791 | | | 442,391 | | | | | | Indefinite-lived intangible assets | | | | Regulatory licenses and other(a) | 81,832 | | | — | | Trade names / trademarks | 26,134 | | | — | | Total indefinite-lived intangible assets | 107,966 | | | — | | Total | $ | 1,085,757 | | | $ | 442,391 | |
(a)Includes certain transportation certifications, a class 1B nuclear license and other intangibles related to obtaining such licensure. These assets are considered indefinite-lived as the decision for renewal by the Canadian Nuclear Safety Commission is highly based on a licensee’s previous assessments, reported incidents, and annual compliance and inspection results. New applications for license can take a significant amount of time and cost; whereas an existing licensee with a historical record of compliance and current operating conditions more than likely ensures renewal for another 10 years license period as Nordion has demonstrated over its 75 years of history.
|
Schedule of Acquired Indefinite-lived Intangible Assets |
Other intangible assets consisted of the following: | | | | | | | | | | | | (thousands of U.S. dollars) | Gross Carrying Amount | | Accumulated Amortization | As of December 31, 2021 | | Finite-lived intangible assets | | | | Customer relationships | $ | 668,628 | | | $ | 365,935 | | Proprietary technology | 88,826 | | | 44,866 | | Trade names | 145 | | | 116 | | Land-use rights | 9,744 | | | 1,586 | | Sealed source and supply agreements | 241,611 | | | 109,838 | | Other | 6,454 | | | 2,166 | | Total finite-lived intangible assets | 1,015,408 | | | 524,507 | | | | | | Indefinite-lived intangible assets | | | | Regulatory licenses and other(a) | 82,110 | | | — | | Trade names / trademarks | 25,833 | | | — | | Total indefinite-lived intangible assets | 107,943 | | | — | | Total | $ | 1,123,351 | | | $ | 524,507 | |
| | | | | | | | | | | | As of December 31, 2020 | Gross Carrying Amount | | Accumulated Amortization | Finite-lived intangible assets | | | | Customer relationships | $ | 634,454 | | | $ | 309,428 | | Proprietary technology | 90,964 | | | 38,075 | | Trade names | 156 | | | 105 | | Land-use rights | 9,489 | | | 1,311 | | Sealed source and supply agreements | 240,791 | | | 92,953 | | Other | 1,937 | | | 519 | | Total finite-lived intangible assets | 977,791 | | | 442,391 | | | | | | Indefinite-lived intangible assets | | | | Regulatory licenses and other(a) | 81,832 | | | — | | Trade names / trademarks | 26,134 | | | — | | Total indefinite-lived intangible assets | 107,966 | | | — | | Total | $ | 1,085,757 | | | $ | 442,391 | |
(a)Includes certain transportation certifications, a class 1B nuclear license and other intangibles related to obtaining such licensure. These assets are considered indefinite-lived as the decision for renewal by the Canadian Nuclear Safety Commission is highly based on a licensee’s previous assessments, reported incidents, and annual compliance and inspection results. New applications for license can take a significant amount of time and cost; whereas an existing licensee with a historical record of compliance and current operating conditions more than likely ensures renewal for another 10 years license period as Nordion has demonstrated over its 75 years of history.
|
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense |
The estimated aggregate amortization expense for finite-lived intangible assets for each of the next five years and thereafter is as follows: | | | | | | (thousands of U.S. dollars) | | 2022 | $ | 81,955 | | 2023 | 81,536 | | 2024 | 80,759 | | 2025 | 43,070 | | 2026 | 22,973 | | Thereafter | 180,608 | | Total | $ | 490,901 | |
|