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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2021
or
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   001-39729
https://cdn.kscope.io/708a28d8168021fa918c462e3b87a4f5-shc-20210930_g1.jpg
SOTERA HEALTH COMPANY
(Exact name of registrant as specified in its charter)
Delaware47-3531161
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification No.)
9100 South Hills Blvd, Suite 300
Broadview Heights, Ohio
44147
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code
(440)
262-1410
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 value per shareSHCThe Nasdaq Stock Market LLC
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 filerAccelerated filer
Non-accelerated filerSmaller 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
As of November 3, 2021, there were 282,916,909 shares of the registrant’s common stock, $0.01 par value per share, outstanding.


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SOTERA HEALTH COMPANY
- TABLE OF CONTENTS -


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CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This Quarterly Report on Form 10-Q includes “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward looking statements are often characterized by the use of the words such as “believes,” “estimates,” “expects,” “projects,” “may,” “intends,” “plans” or “anticipates,” or by discussions of strategy, plans or intentions. Such forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause our actual results, performance or achievements, or industry results, to differ materially from historical results or any future results, performance or achievements expressed, suggested or implied by such forward-looking statements. Such risks and uncertainties include, but are not limited to:
any disruption in the availability of, or increases in the price of, ethylene oxide (“EO”), cobalt-60 (“Co-60”) or our other direct materials, services and supplies, including as a result of current geopolitical instability arising from U.S. relations with Russia and related sanctions;
adverse changes in industry trends;
adverse changes in environmental, health and safety regulations;
accidents resulting from the safety risks associated with the use and disposal of potentially hazardous materials such as EO and Co-60;
accidents resulting from the safety risks associated with the transportation of potentially hazardous materials such as EO and Co-60;
liability claims relating to health risks associated with the use of EO and Co-60;
current and future legal proceedings;
the intensity of competition we face;
any market changes that impact our long-term supply contracts with variable price clauses;
allegations of our failure to properly perform our services and any potential product liability claims, recalls, penalties and reputational harm;
the regulatory requirements to which we are subject, and any failures to receive or maintain, or delays in receiving, required clearance or approvals;
business continuity hazards and other risks associated with our operations, including our reliance on the use and sale of products and services from a single location;
the impact of the COVID-19 pandemic;
our ability to increase capacity at existing facilities and build new facilities in a timely and cost-effective manner;
our ability to renew the long-term leases for our facilities at the end of their terms;
the risks of doing business internationally;
instability in global and regional economic and political conditions;
intense competition for qualified employees in the industries in which we operate;
the significant regulatory oversight to which our import and export operations are subject, and any failure to comply with applicable regulations;
any cyber security breaches and data leaks as a result of our dependence on information technology systems;
the risks of pursuing strategic transactions, including acquisitions, and our ability to find suitable acquisition targets or integrate strategic acquisitions successfully into our business;
our ability to maintain effective internal controls over financial reporting;
our reliance on intellectual property to maintain our competitive position and the risk of claims from third parties that we infringe or misappropriate their intellectual property rights;
the data privacy and security laws and regulations to which we are subject, and any ineffective compliance efforts with such laws and regulations;
our ability to maintain profitability in the future;
impairment charges on our goodwill and other intangible assets with indefinite lives;
unionization efforts and labor regulations in certain countries in which we operate;
the variety of laws involving the cannabis industry to which we are subject, and any failure to comply with those laws;
the risk of government or private civil antitrust actions;
adverse changes to our tax positions in U.S. or non-U.S. jurisdictions, the interpretation and application of recent U.S. tax legislation or other changes in U.S. or non-U.S. taxation of our operations;
our substantial leverage could adversely affect our ability to raise additional capital, limit our ability to react to changes in the economy or our industry and prevent us from meeting our obligations under our existing and future indebtedness; and
our ability to generate sufficient cash flows or access sufficient additional capital to meet our debt obligations or to fund our other liquidity needs.
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These statements are based on current plans, estimates and projections, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them publicly in light of new information or future events, except as required by law. The inclusion of this forward-looking information should not be regarded as a representation by us or any other person that the future plans, estimates or expectations contemplated by us will be achieved.
You should carefully consider the above factors, as well as the factors discussed elsewhere in this Quarterly Report on Form 10-Q, including under Part II, Item 1A, “Risk Factors,” as well as Part I, Item 1A, “Risk Factors” of our Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 10-K”). If any of these trends, risks or uncertainties actually occurs or continues, our business, financial condition or operating results could be materially adversely affected, the trading prices of our securities could decline and you could lose all or part of your investment. All forward-looking statements attributable to us or persons acting on our behalf are expressly qualified in their entirety by this cautionary statement.
Unless expressly indicated or the context requires otherwise, the terms “Sotera Health,” “Company,” “we,” “us,” and “our” in this document refer to Sotera Health Company, a Delaware corporation, and, where appropriate, its subsidiaries on a consolidated basis.
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Part I—FINANCIAL INFORMATION
Item 1. Financial Statements
Sotera Health Company
Consolidated Balance Sheets
(in thousands)
As of
September 30, 2021December 31, 2020
Assets(Unaudited)
Current assets:
Cash and cash equivalents$114,912 $102,447 
Restricted cash short-term7 7 
Accounts receivable, net of allowance for uncollectible accounts of $957 and $708, respectively
96,094 91,735 
Inventories, net37,496 34,093 
Prepaid expenses and other current assets67,707 64,964 
Income taxes receivable21,089 21,769 
Total current assets337,305 315,015 
Property, plant, and equipment, net624,341 609,814 
Operating lease assets42,682 45,963 
Deferred income taxes8,015 8,424 
Investment in unconsolidated affiliate9,396 13,457 
Other assets9,211 9,304 
Other intangible assets, net608,641 643,366 
Goodwill1,103,148 1,115,936 
Total assets$2,742,739 $2,761,279 
Liabilities and equity
Current liabilities:
Accounts payable$51,814 $52,400 
Accrued liabilities54,497 60,518 
Deferred revenue4,866 6,056 
Current portion of finance lease obligations1,339 1,173 
Current portion of operating lease obligations9,546 9,383 
Current portion of asset retirement obligations630 620 
Income taxes payable10,914 10,448 
Total current liabilities133,606 140,598 
Long-term debt1,742,578 1,824,789 
Finance lease obligations, less current portion38,014 34,939 
Operating lease obligations, less current portion35,378 38,941 
Noncurrent asset retirement obligations46,117 45,013 
Deferred lease income20,871 21,255 
Post-retirement obligations42,544 48,223 
Mandatorily redeemable noncontrolling interest 13,625 
Noncurrent liabilities19,300 17,506 
Deferred income taxes138,562 121,816 
Total liabilities2,216,970 2,306,705 
See Commitments and contingencies note
Equity:
Common stock, with $0.01 par value, 1,200,000 shares authorized; 286,037 shares issued at September 30, 2021 and 285,990 at December 31, 2020
2,860 2,860 
Preferred stock, with $0.01 par value, 120,000 authorized; no shares issued at September 30, 2021 and
December 31, 2020, respectively
  
Treasury stock, at cost (3,120 and 2,742 shares at September 30, 2021 and December 31, 2020, respectively)
(34,000)(34,000)
Additional paid-in capital1,171,104 1,166,412 
Retained deficit(508,243)(589,128)
Accumulated other comprehensive loss(105,952)(93,842)
Total equity attributable to Sotera Health Company525,769 452,302 
Noncontrolling interests 2,272 
Total equity525,769 454,574 
Total liabilities and equity$2,742,739 $2,761,279 
See notes to consolidated financial statements.
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Sotera Health Company
Consolidated Statements of Operations and Comprehensive Income (Loss)
(in thousands, except per share amounts)
(Unaudited)
Three Months Ended September 30,Nine Months Ended September 30,
2021202020212020
Revenues:
Service$200,499 $182,176 $597,907 $524,025 
Product25,665 17,852 92,322 77,288 
Total net revenues226,164 200,028 690,229 601,313 
Cost of revenues:
Service88,349 83,697 264,776 247,386 
Product12,229 8,820 40,734 30,932 
Total cost of revenues100,578 92,517 305,510 278,318 
Gross profit125,586 107,511 384,719 322,995 
Operating expenses:
Selling, general and administrative expenses44,038 45,632 146,331 125,369 
Amortization of intangible assets15,877 14,849 48,081 43,989 
Total operating expenses59,915 60,481 194,412 169,358 
Operating income65,671 47,030 190,307 153,637 
Interest expense, net18,140 55,330 58,585 167,142 
Loss on extinguishment of debt6,365  20,677  
Foreign exchange loss (gain)756 (4,571)1,410 (5,370)
Other income, net(693)(3,145)(7,347)(4,353)
Income (loss) before income taxes41,103 (584)116,982 (3,782)
Provision (benefit) for income taxes13,659 (1,213)35,858 (9,677)
Net income27,444 629 81,124 5,895 
Less: Net income attributable to noncontrolling interests 619 239 832 
Net income attributable to Sotera Health Company27,444 10 80,885 5,063 
Other comprehensive (loss) income net of tax:
Pension and post-retirement benefits (net of taxes of $466, $(182), $240, and $236, respectively)
1,383 (540)713 700 
Interest rate swaps (net of taxes of $0, $661, $0 and $(63), respectively)
 1,835  (179)
Foreign currency translation(29,867)17,223 (12,528)(31,304)
Comprehensive income (loss)(1,040)19,147 69,309 (24,888)
Less: comprehensive income attributable to noncontrolling interests 620 534 832 
Comprehensive income (loss) attributable to Sotera Health Company$(1,040)$18,527 $68,775 $(25,720)
Earnings per share:
Basic$0.10 $ $0.29 $0.02 
Diluted0.10  0.29 0.02 
Weighted average number of shares outstanding:
Basic279,381 232,400 279,097 232,400 
Diluted279,560 232,400 279,253 232,400 
See notes to consolidated financial statements.
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Sotera Health Company
Consolidated Statements of Cash Flows
(in thousands)
(Unaudited)
Nine Months Ended September 30,
20212020
Operating activities:
Net income$81,124 $5,895 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation47,457 47,334 
Amortization of intangible assets65,299 59,824 
Loss on extinguishment of debt20,677  
Deferred income taxes8,131 (178)
Share-based compensation expense10,489 4,019 
Accretion of asset retirement obligations1,751 1,502 
Unrealized foreign exchange losses / (gains)715 (10,006)
Unrealized (gain) / loss on embedded derivative instruments(424)579 
Amortization of debt issuance costs4,789 8,828 
Other(6,174)(5,096)
Changes in operating assets and liabilities:
Accounts receivable(4,901)4,533 
Inventories(3,429)7,175 
Other current assets2,225 (2,697)
Accounts payable(291)(7,848)
Accrued liabilities(7,985)3,030 
Income taxes payable / receivable(3,620)(20,057)
Other liabilities(290)412 
Other long-term assets(349)1,491 
Net cash provided by operating activities215,194 98,740 
Investing activities:
Purchases of property, plant and equipment(60,898)(33,640)
Purchase of mandatorily redeemable noncontrolling interest in Nelson Laboratories Fairfield, Inc.(12,425) 
Purchase of BioScience Laboratories, LLC, net of cash acquired(13,530) 
Purchase of Iotron Industries Canada, Inc., net of cash acquired (106,280)
Other investing activities(717) 
Net cash used in investing activities(87,570)(139,920)
Financing activities:
Proceeds from borrowings 150,000 
Purchase of noncontrolling interests in China subsidiaries(8,418) 
Payments of debt issuance costs and prepayment premium(6,718)(3,898)
Payments on debt(100,000)(61,025)
Other(368)(1,116)
Net cash (used in) provided by financing activities(115,504)83,961 
Effect of exchange rate changes on cash and cash equivalents345 2,639 
Net increase in cash and cash equivalents, including restricted cash12,465 45,420 
Cash and cash equivalents, including restricted cash, at beginning of period102,454 63,025 
Cash and cash equivalents, including restricted cash, at end of period$114,919 $108,445 
Supplemental disclosures of cash flow information:
Cash paid during the period for interest$53,726 $163,965 
Cash paid during the period for income taxes, net of tax refunds received31,922 9,650 
Equipment purchases included in accounts payable14,527 8,494 
See notes to consolidated financial statements.
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Sotera Health Company
Consolidated Statements of Equity
(in thousands)
(Unaudited)
Three Months Ended September 30, 2021
Common Stock
Additional
Paid-In
Capital
Retained
Earnings /
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
(Loss) Income
Noncontrolling
Interests
Total
Equity
Shares
Amount
Treasury
Stock
Balance at June 30, 2021282,917 $2,860 $(34,000)$1,167,566 $(535,687)$(77,468)$ $523,271 
Share-based compensation plans — — 3,538 — — — 3,538 
Comprehensive income (loss):
Pension and post-retirement plan adjustments, net of tax— — — — — 1,383 — 1,383 
Foreign currency translation— — — — — (29,867) (29,867)
Net income — — — — 27,444 —  27,444
Balance at September 30, 2021282,917 $2,860 $(34,000)$1,171,104 $(508,243)$(105,952)$ $525,769 
Nine Months Ended September 30, 2021
Common Stock

Additional
Paid-In
Capital
Retained
Earnings /
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
(Loss) Income
Noncontrolling
Interests
Total
Equity
Shares
Amount
Treasury
Stock
Balance at December 31, 2020283,248 $2,860 $(34,000)$1,166,412 $(589,128)$(93,842)$2,272 $454,574 
Acquisition of noncontrolling interests— — — (5,772)— — (2,806)(8,578)
Issuance of shares47 — — 1,080 — — — 1,080 
Share-based compensation plans(378)— — 9,384 — — — 9,384 
Comprehensive income (loss):
Pension and post-retirement plan adjustments, net of tax— — — — — 713 — 713 
Foreign currency translation— — — — — (12,823)295 (12,528)
Net income— — — — 80,885 — 239 81,124
Balance at September 30, 2021282,917 $2,860 $(34,000)$1,171,104 $(508,243)$(105,952)$ $525,769 
See notes to consolidated financial statements.
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Sotera Health Company
Consolidated Statements of Equity (Deficit) (continued)
(in thousands)
(Unaudited)
Three Months Ended September 30, 2020
Common Stock
Additional
Paid-In
Capital
Retained
Earnings /
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
(Loss) Income
Noncontrolling
Interests
Total
Equity (Deficit)
Shares
Amount
Balance at June 30, 2020232,400 $2,324 $3,118 $(545,458)$(143,688)$1,654 $(682,050)
Share-based compensation plans— — 901 — — — 901 
Comprehensive income (loss):
Pension and post-retirement plan adjustments, net of tax— — — — (540)— (540)
Foreign currency translation— — — — 17,640 (417)17,223 
Interest rate swaps— — — — 1,835 — 1,835 
Net income— — — 10 — 620 630 
Balance at September 30, 2020232,400 $2,324 $4,019 $(545,448)$(124,753)$1,857 $(662,001)
Nine Months Ended September 30, 2020
Common Stock
Additional
Paid-In
Capital
Retained
Earnings /
(Accumulated
Deficit)
Accumulated
Other
Comprehensive
(Loss) Income
Noncontrolling
Interests
Total
Equity (Deficit)
Shares
Amount
Balance at December 31, 2019232,400 $2,324 $ $(550,511)$(94,387)$1,442 $(641,132)
Share-based compensation plans— — 4,019 — — — 4,019 
Comprehensive income (loss):
Pension and post-retirement plan adjustments, net of tax— — — — 700 — 700 
Foreign currency translation— — — — (30,887)(417)(31,304)
Interest rate swaps— — — — (179)— (179)
Net income— — — 5,063 — 832 5,895
Balance at September 30, 2020232,400 $2,324 $4,019 $(545,448)$(124,753)$1,857 $(662,001)
See notes to consolidated financial statements.
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Sotera Health Company
Notes to Consolidated Financial Statements

1.Basis of Presentation
Principles of Consolidation – Sotera Health Company (also referred to herein as the “Company,” “we,” “our,” “us” or “its”), is a leading global provider of mission-critical end-to-end sterilization solutions, lab testing and advisory services for the healthcare industry with operations primarily in the Americas, Europe and Asia.
We operate and report in three segments, Sterigenics, Nordion and Nelson Labs. We describe our reportable segments in Note 18, “Segment Information”. All significant intercompany balances and transactions have been eliminated in consolidation.
Noncontrolling interests represent the noncontrolling stockholders’ proportionate share of the total equity in the Company’s consolidated subsidiaries. We consolidate the results of operations of these subsidiaries with our results of operations. In the second quarter of 2021, we purchased the outstanding noncontrolling interests of 15% and 33% of our two China subsidiaries. Refer to Note 4, “Acquisitions” for additional details. We reflect the noncontrolling interests in our two China subsidiaries for all periods presented prior to this purchase transaction on our Consolidated Statements of Operations and Comprehensive Income (Loss) as “Net income attributable to noncontrolling interests.”
On March 11, 2021, we purchased the 15% noncontrolling interest that remained from the August 2018 acquisition of Nelson Laboratories Fairfield, Inc. (“Nelson Labs Fairfield”). As the purchase of this noncontrolling interest was mandatorily redeemable, no earnings were allocated to this noncontrolling interest. See Note 4, “Acquisitions” for additional details.
In July 2020, we acquired a 60% equity ownership interest in a joint venture to construct an E-beam facility in Alberta, Canada in connection with our acquisition of Iotron Industries Canada, Inc. (“Iotron”). Refer to Note 4, “Acquisitions” for additional information. We have determined this to be an investment in a variable interest entity (“VIE”). The investment is not consolidated as the Company has concluded that we are not the primary beneficiary of the VIE. The Company accounts for the joint venture using the equity method. The investment is reflected within “Investment in unconsolidated affiliates” on the Consolidated Balance Sheets.
Use of Estimates – In preparing our consolidated financial statements in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”), we make estimates and assumptions that affect the amounts reported and the accompanying notes. We regularly evaluate the estimates and assumptions used and revise them as new information becomes available. Actual results may vary from those estimates.
Interim Financial Statements – The accompanying consolidated financial statements include the assets, liabilities, operating results, and cash flows of the Company and its wholly owned subsidiaries. These financial statements are prepared in accordance with U.S. GAAP for interim financial information and the instructions to the Quarterly Report on Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring adjustments) considered necessary for a fair presentation have been included. These unaudited interim financial statements should be read in conjunction with the Company's annual consolidated financial statements and accompanying notes on Form 10-K for the year ended December 31, 2020.
2.Recent Accounting Standards
ASUs Issued But Not Yet Adopted
Under the Jumpstart Our Business Startups Act of 2012, emerging growth companies can delay adopting new or revised accounting standards until such time as those standards apply to private companies. As an emerging growth company, we have elected to take advantage of the extended transition period for complying with new or revised accounting standards until those standards would otherwise apply to private companies or at which time we conclude it is appropriate to avail ourselves of early adoption provisions of applicable standards. As a result, our results of operations and financial statements may not be comparable to the results of operations and financial statements of other companies who have adopted the new or revised accounting standards.
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Sotera Health Company
Notes to Consolidated Financial Statements
In June 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2016-13, Financial Instruments – Credit Losses (“ASU 2016-13”): Measurement of Credit Losses on Financial Instruments, and subsequently issued additional guidance that modified ASU 2016-13. The standard requires an entity to change its accounting approach in determining impairment of certain financial instruments, including trade receivables, from an “incurred loss” to a “current expected credit loss” model. We intend to adopt the standard as of January 1, 2022. We are currently assessing the effect that ASU 2016-13 will have on our financial position, results of operations, and disclosures.
In December 2019, the FASB issued ASU 2019-12 - Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. The standard simplifies the accounting for income taxes and makes a number of changes meant to add or clarify guidance on accounting for income taxes. This update is effective for annual financial statement periods beginning after December 15, 2021 and interim periods within fiscal years beginning after December 15, 2022, with early adoption permitted in any interim period for which financial statements have not yet been filed. We are currently assessing the effect that ASU 2019-12 will have on our financial position, results of operations, and disclosures.
3.Revenue Recognition
The following table shows disaggregated net revenues from contracts with external customers by timing of revenue and by segment for the three and nine months ended September 30, 2021 and 2020:
(thousands of U.S. dollars)Three Months Ended September 30, 2021
SterigenicsNordionNelson LabsConsolidated
Point in time$145,314 $28,768 $ $174,082 
Over time  52,082 52,082 
Total$145,314 $28,768 $52,082 $226,164 
(thousands of U.S. dollars)Three Months Ended September 30, 2020
SterigenicsNordionNelson LabsConsolidated
Point in time$126,303 $20,268 $ $146,571 
Over time  53,457 53,457 
Total$126,303 $20,268 $53,457 $200,028 
(thousands of U.S. dollars)Nine Months Ended September 30, 2021
SterigenicsNordionNelson LabsConsolidated
Point in time$421,647 $102,439 $ $524,086 
Over time 1,372 164,771 166,143 
Total$421,647 $103,811 $164,771 $690,229 
(thousands of U.S. dollars)Nine Months Ended September 30, 2020
SterigenicsNordionNelson LabsConsolidated
Point in time$363,955 $86,034 $ $449,989 
Over time  151,324 151,324 
Total$363,955 $86,034 $151,324 $601,313 
Contract Balances
As of September 30, 2021, and December 31, 2020, contract assets included in “Prepaid expenses and other current assets” on the Consolidated Balance Sheets totaled approximately $14.7 million and $12.7 million, respectively, resulting from revenue recognized over time in excess of the amount billed to the customer.
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Sotera Health Company
Notes to Consolidated Financial Statements
When we receive consideration from a customer prior to transferring goods or services under the terms of a sales contract, we record deferred revenue, which represents a contract liability. Deferred revenue totaled $4.9 million and $6.1 million at September 30, 2021 and December 31, 2020, respectively. We recognize deferred revenue after all revenue recognition criteria are met.
4.Acquisitions
Acquisition of Noncontrolling Interests in China Subsidiaries
On May 18, 2021, the Company acquired the remaining 15% and 33% noncontrolling interests associated with our two subsidiaries located in China. As a result, both entities are now 100% owned by the Company. The purchase price of the remaining equity interests was approximately $8.6 million, net of the cancellation of an $0.8 million demand note. The Company paid 90% of the cash consideration on the acquisition date. The remaining amounts were partially settled in post-closing payments in the third quarter of 2021; $0.2 million of the post-closing payment remains outstanding as of September 30, 2021 subject to the terms of the equity transfer agreements. As a result of the transactions, we continue to consolidate both of these subsidiaries, however, as of May 18, 2021, we no longer record noncontrolling interests in the consolidated financial statements as these subsidiaries are fully owned by the Company. The purchases were accounted for as equity transactions. As a result of these transactions, noncontrolling interests were reduced by $2.8 million reflecting the carrying value of the interest with $5.8 million of the difference charged to additional paid-in capital.

Acquisition of BioScience Laboratories, LLC
On March 8, 2021, we acquired BioScience Laboratories, LLC (“BioScience Labs”) for approximately $13.5 million, net of $0.2 million of cash acquired plus the contemporaneous repayment of BioScience Labs’ outstanding debt of $1.9 million. BioScience is a provider of outsourced topical antimicrobial product testing in the pharmaceutical, medical device, and consumer products industries with one location in Bozeman, Montana.
The purchase price of BioScience Labs was allocated to the underlying assets acquired and liabilities assumed based upon management's estimated fair values at the date of acquisition. Changes to the allocation of the purchase price may occur as these measurements are completed. Approximately $10.6 million of goodwill was recorded related to the BioScience Labs acquisition, representing the excess of the purchase price over the preliminary estimated fair values of all the assets acquired and liabilities assumed. The Company funded this acquisition using available cash. The acquisition price and the results of operations for this acquired entity are not material in relation to the Company's consolidated financial statements.
Acquisition of Mandatorily Redeemable Noncontrolling Interest - Nelson Labs Fairfield
On March 11, 2021, we completed the acquisition of the remaining 15% ownership of Nelson Labs Fairfield for $12.4 million, resulting in a gain of $1.2 million included in “Other expense (income), net” in the Consolidated Statements of Operations and Comprehensive Income (Loss) relative to the $13.6 million previously accrued. Pursuant to the terms of the August 2018 acquisition, we initially acquired 85% of the equity interests of Nelson Labs Fairfield in August 2018 and were obligated to acquire the remaining 15% noncontrolling interest within three years from the date of the acquisition.
Acquisition of Iotron Industries Canada, Inc.
On July 31, 2020, we acquired Iotron for approximately $105.2 million. Iotron was an independent contact sterilizer with two North American locations in Vancouver, Canada, and Columbia City, Indiana. Each location uses proprietary high energy electron beam technology to process products for orthopedic, medical device, plastics, and agricultural businesses. The acquisition was financed by the issuance of $100.0 million of First Lien Notes due 2026. Refer to Note 9, “Long-Term Debt” for additional details.
As part of this acquisition, we also acquired Iotron’s 60% equity ownership interest in a joint venture to construct an E-beam facility in Alberta, Canada. The joint venture is accounted for using the equity method.
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Sotera Health Company
Notes to Consolidated Financial Statements
The estimated fair value of the underlying acquired assets and assumed liabilities of the Iotron acquisition and the measurement period adjustments recognized during the nine months ended September 30, 2021, were as follows:
(thousands of U.S. dollars)
Allocation of purchase price to the fair value of
net assets acquired (net of cash acquired):
Amount recognized as of December 31, 2020Measurement Period AdjustmentsAmount recognized as of September 30, 2021
Goodwill$69,046 $(19,447)$49,599 
Intangibles16,427 26,273 42,700 
Property, plant, and equipment13,812 4,346 18,158 
Working capital, net1,115 2 1,117 
Investment in unconsolidated affiliate12,881 (4,181)8,700 
Assumed long-term liabilities(2,248) (2,248)
Other assets/liabilities, net(5,846)(6,993)(12,839)
Total purchase price$105,187 $ $