What the changes say
- Avantor expanded its multi-year cost transformation initiative target to $400 million in gross savings by the end of 2027.
What changed since the prior 10-K
New
- NewRisks related to our business and our industry
Reductions in customers’ research budgets or government funding may adversely affect our business
Customer research budgets and purchases of our products may decline due to reductions in government funding or federal budget impasses affecting the NIH.
- NewRisks related to our business and our industry
Our actual or perceived failure to adequately protect personal data could adversely affect our business
We face increasing compliance costs, contractual obligations, and potential private rights of action under data privacy regulations like GDPR and CPRA.
- NewRisks related to our business and our industry
Changes in tax law relating to multinational corporations could adversely affect our tax position
The OECD global minimum corporate tax and the U.S. One Big Beautiful Bill Act may adversely affect our tax position and provision for income taxes.
- NewRisks related to regulation
and give rise to additional environmental liabilities, business interruptions, compliance costs or penalties, which could have an adverse effect on our business, financial condition and results of operations
We incur and may incur remediation costs for past or current waste disposal and hazardous materials handling at properties we own or operate.
- NewRisks related to regulation
Changes to trade policy, including new or increased tariffs and changing import/export regulations, may adversely affect our business, financial condition and results of operations
New or increased tariffs, import/export regulations, and retaliatory trade sanctions by foreign governments may adversely affect our business.
- NewRisks related to ownership of our stock
Our business could be impacted as a result of actions by activist shareholders or others
Activist shareholder campaigns could divert management attention, disrupt operations, cause significant legal expenses, and create stock price volatility.
Dropped
- DroppedRisks related to our business and our industry
Given the nature of our business, we collect and store confidential information that customers provide in order to, among other things, purchase products and services and register on our website
- DroppedRisks related to our business and our industry
components could be impacted by the availability and price of those raw materials and maintaining relationships with key suppliers
- DroppedRisks related to our indebtedness
Our indebtedness could adversely affect our financial condition and prevent us from fulfilling our debt or contractual obligations
- DroppedRisks related to ownership of our stock
regulations thereunder, and our stockholders will not be deemed to have waived our compliance with these laws, rules and regulations
Reworded
- 70% rewrittenRisks related to our business and our industry
We face risks related to health epidemics and pandemics
The text was re-issued without substantive changes to the pandemic risk description.
- 63% rewrittenRisks related to our business and our industry
Climate change, and the legal or regulatory response thereto, may have a long-term impact on our business, financial condition and results of operations
Added risks regarding the long-term adverse impacts of climate change legal initiatives and increased reporting costs associated with sustainability rules.
- 61% rewrittenRisks related to our business and our industry
We are highly dependent on our senior management and key employees
Added specific warnings that the company has recently experienced senior management changes and board transitions that could disrupt strategy implementation.
- 60% rewrittenRisks related to our business and our industry
We depend upon the availability of raw materials
Expanded to include supplier delivery schedules and criteria compliance, incorporating language previously found in a separate risk.
- 57% rewrittenRisks related to regulation
We are subject to environmental, health and safety laws and regulations, and costs to comply with such laws and regulations, or any liability or obligation imposed under such laws or regulations, could negatively impact our business, financial condition and results of operations
Added uncertainty regarding unidentified environmental conditions, new regulations, and more vigorous enforcement by authorities.
- 55% rewrittenRisks related to our indebtedness
Despite our current level of indebtedness, we and our subsidiaries may still be able to incur substantially more debt
Added the risk that we may not be able to obtain additional financing or refinancing on acceptable terms to repay our debt.
- 40% rewrittenRisks related to our business and our industry
We are subject to risks associated with doing business globally, which may harm our business
Added escalation of geopolitical tensions as a specific factor affecting international operations.
- 36% rewrittenRisks related to our business and our industry
It may be difficult for us to implement our strategies for improving growth and optimizing costs
Updated the cost transformation initiative target from $300 million in savings by the end of 2026 to $400 million by the end of 2027.
- 29% rewrittenRisks related to ownership of our stock
If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results
- 21% rewrittenRisks related to our business and our industry
The customers we serve have experienced, and will continue to experience, significant industry-related changes that could adversely affect our business
All 37 risk factors
Headings as the filing states them, in filing order.
Risks related to our business and our industry
- 01Significant interruptions in our operations could harm our business, financial condition and results of operations
- 02We have been impacted by supply chain constraints and inflationary pressures
- 03We compete in highly competitive markets. Failure to compete successfully could adversely affect our business, financial condition and results of operations
- 04It may be difficult for us to implement our strategies for improving growth and optimizing costs36% rewritten
- 05Part of our growth strategy is to pursue strategic acquisitions, which will subject us to a variety of risks that could harm our business
- 06The customers we serve have experienced, and will continue to experience, significant industry-related changes that could adversely affect our business21% rewritten
- 07Reductions in customers’ research budgets or government funding may adversely affect our businessNew
- 08Our offerings are highly complex, and, if our products do not satisfy applicable quality criteria, specifications and performance standards, we could experience lost sales, delayed or reduced market acceptance of our products, increased costs and damage to our reputation
- 09The loss of a significant number of customers or a significant reduction in customer orders could reduce our net sales and harm our operating results
- 10We are subject to risks associated with doing business globally, which may harm our business40% rewritten
- 11Changes in exchange rates can adversely affect our financial condition, results of operations and cash flows
- 12Our business depends on our ability to use and access information systems, and any failure to successfully maintain these systems or implement new systems to handle our changing needs could materially harm our operations
- 13Our actual or perceived failure to adequately protect personal data could adversely affect our businessNew
- 14Our inability to protect our intellectual property could adversely affect our business. In addition, third parties may claim that we infringe their intellectual property, and we could suffer significant litigation or licensing expenses as a result
- 15Our trademarks are valuable assets and if we are unable to protect them from infringement, our business prospects may be harmed
- 16We are subject to product liability and other claims in the ordinary course of business
- 17We must develop new products, adapt to rapid and significant technological change and respond to introductions of new products by competitors to remain competitive
- 18We depend upon the availability of raw materials60% rewritten
- 19We depend upon maintaining our relationships with suppliers
- 20Our use of chemicals and chemical processes is subject to inherent risk
- 21Climate change, and the legal or regulatory response thereto, may have a long-term impact on our business, financial condition and results of operations63% rewritten
- 22We are highly dependent on our senior management and key employees61% rewritten
- 23The indemnification provisions of acquisition agreements by which we have acquired companies may not fully protect us and as a result, we may face unexpected liabilities
- 24We face risks related to health epidemics and pandemics70% rewritten
- 25Changes in tax law relating to multinational corporations could adversely affect our tax positionNew
- 26Certain of our businesses rely on relationships with collaborative partners and other third parties for development, supply and marketing of certain products and potential products, and such collaborative partners or other third parties could fail to perform sufficiently
Risks related to regulation
- 27We are required to comply with a wide variety of laws and regulations, and are subject to regulation by various federal, state and foreign agencies, and our failure to comply with existing and future regulatory requirements could adversely affect our results of operations and financial condition
- 28Our reputation, ability to do business and financial statements may be impaired by improper conduct by any of our employees, agents or business partners
- 29We are subject to laws and regulations governing government contracts, and failure to address these laws and regulations or comply with government contracts could harm our business by leading to a reduction in sales to these customers or penalties
- 30We are subject to environmental, health and safety laws and regulations, and costs to comply with such laws and regulations, or any liability or obligation imposed under such laws or regulations, could negatively impact our business, financial condition and results of operations57% rewritten
- 31and give rise to additional environmental liabilities, business interruptions, compliance costs or penalties, which could have an adverse effect on our business, financial condition and results of operationsNew
- 32Changes in corporate governance and public disclosure requirements and expectations could impact compliance costs and the risks of noncompliance
- 33Changes to trade policy, including new or increased tariffs and changing import/export regulations, may adversely affect our business, financial condition and results of operationsNew
Risks related to our indebtedness
- 34Despite our current level of indebtedness, we and our subsidiaries may still be able to incur substantially more debt55% rewritten
Risks related to ownership of our stock
- 35Because we have no current plans to pay cash dividends on our common stock, you may not receive any return on investment unless you sell your common stock for a price greater than that which you paid for it
- 36If we fail to maintain an effective system of internal controls, we may not be able to accurately report our financial results29% rewritten
- 37Our business could be impacted as a result of actions by activist shareholders or othersNew
Other Avantor 10-Ks
- FY2024 10-K risk factors35 risks
Avantor operates with high debt levels and variable interest rate exposure under credit facilities.
Filed Feb 07, 2025
About this page
The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.