Company: NPO
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0001164863-25-000009
Chunk: 35

Company: Enpro Inc.
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 35
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 of the existing technology and in-process research and development acquired. These procedures also included, among others (i) reading the purchase agreement; (ii) testing management’s process for developing the fair value estimate of the existing technology and in-process research and development acquired; (iii) evaluating the appropriateness of the multi-period excess earnings method used by management; (iv) testing the completeness and accuracy of the underlying data used in the multi-period excess earnings method; and (v) evaluating the reasonableness of the significant assumptions used by management related to (a) projected revenues and profit margins, the obsolescence factor, the discount rate, and the long-term growth rate for existing technology and (b) projected revenues and profit margins, and the obsolescence factor for in-process research and development. Evaluating management’s assumptions related to (a) projected revenues and profit margins, and the long-term growth rate for existing technology and (b) the projected revenues and profit margins for  in-process research and development involved considering (i) the current and past performance of the AMI business; (ii) the consistency with external market and industry data; and (iii) whether the assumptions were consistent with evidence obtained in other areas of the audit. Professionals with specialized skill and knowledge were used to assist in evaluating (i) the appropriateness of the multi-period excess earnings method; (ii) the reasonableness of the discount rate assumption for existing technology; and (iii) the reasonableness of the obsolescence factor assumption for existing technology and in-process research and development.

/s/ PricewaterhouseCoopers LLP 

Charlotte, North Carolina

February 21, 2025

We have served as the Company’s auditor since 2004.

52

FINANCIAL INFORMATION

ENPRO INC.

CONSOLIDATED STATEMENTS OF OPERATIONS

Years Ended December 31, 2024, 2023 and 2022 

(in millions, except per share data)

202420232022Net sales$1,048.7 $1,059.3 $1,099.2 Cost of sales603.9 632.5 675.9 Gross profit444.8 426.8 423.3 Operating expenses:Selling, general and administrative296.3 284.2 282.8 Goodwill impairment— 60.8 65.2 Other6.2 5.0 3.1 Total operating expenses302.5 350.