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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2022
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 1-11846
atr-20220331_g1.jpg
AptarGroup, Inc.
Delaware36-3853103
(State of Incorporation)(I.R.S. Employer Identification No.)
265 EXCHANGE DRIVE, SUITE 100, CRYSTAL LAKEIL 60014
815-477-0424
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, $.01 par valueATRNew York Stock Exchange
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 þ 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 þ 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 filer
Accelerated filer

Non-accelerated
filer
Smaller 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 þ
The number of shares outstanding of common stock, as of April 22, 2022, was 65,573,074 shares.


AptarGroup, Inc.
Form 10-Q
Quarter Ended March 31, 2022
INDEX
i

PART I – FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS (UNAUDITED)
AptarGroup, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
In thousands, except per share amounts
Three Months Ended March 31,20222021
Net Sales$844,932 $776,754 
Operating Expenses:
Cost of sales (exclusive of depreciation and amortization shown below)542,728 488,705 
Selling, research & development and administrative145,541 134,348 
Depreciation and amortization58,665 57,438 
Restructuring initiatives291 3,672 
Total Operating Expenses747,225 684,163 
Operating Income97,707 92,591 
Other (Expense) Income:
Interest expense(8,930)(7,415)
Interest income288 381 
Net investment (loss) gain(1,250)16,809 
Equity in results of affiliates(86)(515)
Miscellaneous, net(1,103)(963)
Total Other (Expense) Income(11,081)8,297 
Income before Income Taxes86,626 100,888 
Provision for Income Taxes24,255 16,949 
Net Income$62,371 $83,939 
Net Loss Attributable to Noncontrolling Interests$52 $13 
Net Income Attributable to AptarGroup, Inc.$62,423 $83,952 
Net Income Attributable to AptarGroup, Inc. per Common Share:
Basic$0.95 $1.29 
Diluted$0.93 $1.24 
Average Number of Shares Outstanding:
Basic65,543 65,229 
Diluted67,146 67,648 
Dividends per Common Share$0.38 $0.36 

See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
1

AptarGroup, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
In thousands
Three Months Ended March 31,20222021
Net Income$62,371 $83,939 
Other Comprehensive Income (Loss):
Foreign currency translation adjustments(23,042)(48,482)
Changes in derivative (losses) gains, net of tax(412)520 
Defined benefit pension plan, net of tax
Actuarial (loss) gain, net of tax(783)319 
Amortization of prior service cost included in net income, net of tax28 33 
Amortization of net loss included in net income, net of tax1,580 2,354 
Total defined benefit pension plan, net of tax825 2,706 
Total other comprehensive loss(22,629)(45,256)
Comprehensive Income39,742 38,683 
Comprehensive Loss Attributable to Noncontrolling Interests14 13 
Comprehensive Income Attributable to AptarGroup, Inc.$39,756 $38,696 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
2

AptarGroup, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In thousands
March 31, 2022December 31, 2021
Assets
Cash and equivalents$355,629 $122,925 
Short-term investments717 740 
Total Cash and equivalents and Short-term investments356,346 123,665 
Accounts and notes receivable, less current expected credit loss ("CECL") of $8,754 in 2022 and $7,374 in 2021
694,373 671,350 
Inventories459,613 441,464 
Prepaid and other131,754 121,729 
Total Current Assets1,642,086 1,358,208 
Land30,850 31,436 
Buildings and improvements638,988 631,897 
Machinery and equipment2,861,827 2,862,142 
Property, Plant and Equipment, Gross3,531,665 3,525,475 
Less: Accumulated depreciation(2,255,047)(2,249,598)
Property, Plant and Equipment, Net1,276,618 1,275,877 
Investments in equity securities57,137 59,485 
Goodwill961,757 974,157 
Intangible assets, net348,165 362,343 
Operating lease right-of-use assets64,244 62,454 
Miscellaneous57,445 48,840 
Total Other Assets1,488,748 1,507,279 
Total Assets$4,407,452 $4,141,364 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
3

AptarGroup, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In thousands, except share and per share amounts
March 31, 2022December 31, 2021
Liabilities and Stockholders’ Equity
Current Liabilities:
Notes payable, revolving credit facility and overdrafts$841 $147,276 
Current maturities of long-term obligations, net of unamortized debt issuance costs142,178 142,351 
Accounts payable, accrued and other liabilities718,474 692,865 
Total Current Liabilities861,493 982,492 
Long-Term Obligations, net of unamortized debt issuance costs1,294,850 907,024 
Deferred income taxes24,548 27,547 
Retirement and deferred compensation plans104,344 116,809 
Operating lease liabilities47,862 48,010 
Deferred and other non-current liabilities75,904 74,882 
Commitments and contingencies  
Total Deferred Liabilities and Other252,658 267,248 
AptarGroup, Inc. stockholders’ equity
Common stock, $.01 par value, 199 million shares authorized, 70.5 and 70.4 million shares issued as of March 31, 2022 and December 31, 2021, respectively
705 704 
Capital in excess of par value929,218 916,534 
Retained earnings1,826,924 1,789,413 
Accumulated other comprehensive loss(338,708)(316,041)
Less: Treasury stock at cost, 5.0 and 4.9 million shares as of March 31, 2022 and December 31, 2021, respectively
(434,867)(421,203)
Total AptarGroup, Inc. Stockholders’ Equity1,983,272 1,969,407 
Noncontrolling interests in subsidiaries15,179 15,193 
Total Stockholders’ Equity1,998,451 1,984,600 
Total Liabilities and Stockholders’ Equity$4,407,452 $4,141,364 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
4

AptarGroup, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(Unaudited)
In thousands
Three Months EndedAptarGroup, Inc. Stockholders’ Equity
March 31, 2022 and 2021Retained
Earnings
Accumulated
Other
Comprehensive
(Loss) Income
Common
Stock
Par Value
Treasury
Stock
Capital in
Excess of
Par Value
Non-
Controlling
Interest
Total
Equity
Balance - December 31, 2020
$1,643,825 $(281,709)$695 $(361,583)$849,161 $396 $1,850,785 
Net income (loss)83,952 — — — — (13)83,939 
Foreign currency translation adjustments— (48,482)— — —  (48,482)
Changes in unrecognized pension gains (losses) and related amortization, net of tax— 2,706 — — — — 2,706 
Changes in derivative gains (losses), net of tax— 520 — — — — 520 
Stock awards and option exercises— — 5 9,301 25,462 — 34,768 
Cash dividends declared on common stock(23,441)— — — — — (23,441)
Balance - March 31, 2021$1,704,336 $(326,965)$700 $(352,282)$874,623 $383 $1,900,795 
Balance - December 31, 2021
$1,789,413 $(316,041)$704 $(421,203)$916,534 $15,193 $1,984,600 
Net income (loss)62,423 — — — — (52)62,371 
Foreign currency translation adjustments— (23,080)— — — 38 (23,042)
Changes in unrecognized pension gains (losses) and related amortization, net of tax— 825 — — — — 825 
Changes in derivative gains (losses), net of tax— (412)— — — — (412)
Stock awards and option exercises— — 1 2,319 12,684 — 15,004 
Cash dividends declared on common stock(24,912)— — — — — (24,912)
Treasury stock purchased— — — (15,983)— — (15,983)
Balance - March 31, 2022$1,826,924 $(338,708)$705 $(434,867)$929,218 $15,179 $1,998,451 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
5


AptarGroup, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
In thousands, brackets denote cash outflows
Three Months Ended March 31,20222021
Cash Flows from Operating Activities:
Net income$62,371 $83,939 
Adjustments to reconcile net income to net cash provided by operations:
Depreciation47,638 47,627 
Amortization11,027 9,811 
Stock-based compensation13,362 11,489 
Provision for CECL1,393 342 
(Gain) loss on disposition of fixed assets(182)91 
Net loss (gain) on remeasurement of equity securities1,250 (16,809)
Deferred income taxes(2,859)(3,580)
Defined benefit plan expense6,225 7,475 
Equity in results of affiliates86 515 
Change in fair value of contingent consideration(1,050)975 
Changes in balance sheet items, excluding effects from foreign currency adjustments:
Accounts and other receivables(28,977)(70,194)
Inventories(21,758)(26,428)
Prepaid and other current assets(10,629)(16,995)
Accounts payable, accrued and other liabilities32,012 49,764 
Income taxes payable1,697 (3,121)
Retirement and deferred compensation plan liabilities(19,913)(5,156)
Other changes, net384 2,440 
Net Cash Provided by Operations92,077 72,185 
Cash Flows from Investing Activities:
Capital expenditures(73,058)(63,884)
Proceeds from government grants7,955  
Proceeds from sale of property, plant and equipment446 318 
Maturity of short-term investment24 243 
Proceeds from sale of investment in equity securities1,088  
Notes receivable, net(4,876)(593)
Net Cash Used by Investing Activities(68,421)(63,916)
Cash Flows from Financing Activities:
Proceeds from notes payable and overdrafts9,172 4,019 
Repayments of notes payable and overdrafts(11,293)(3,180)
Repayments and proceeds of short term revolving credit facility, net(144,345)(52,000)
Proceeds from long-term obligations402,153 2,053 
Repayments of long-term obligations(2,795)(4,337)
Debt issuance costs(3,766) 
Dividends paid(24,912)(23,441)
Proceeds from stock option exercises3,688 31,871 
Purchase of treasury stock(15,983) 
Net Cash Provided (Used) by Financing Activities211,919 (45,015)
Effect of Exchange Rate Changes on Cash(2,871)(8,539)
Net Increase (Decrease) in Cash and Equivalents and Restricted Cash232,704 (45,285)
Cash and Equivalents and Restricted Cash at Beginning of Period122,925 304,970 
Cash and Equivalents and Restricted Cash at End of Period$355,629 $259,685 
6

Restricted cash included in the line item prepaid and other on the Condensed Consolidated Balance Sheets as shown below represents amounts held in escrow related to the Fusion Acquisition and the Noble Acquisition.
Three Months Ended March 31,20222021
Cash and equivalents$355,629 $254,852 
Restricted cash included in prepaid and other 4,833 
Total Cash and Equivalents and Restricted Cash shown in the Statement of Cash Flows$355,629 $259,685 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
7

AptarGroup, Inc.
Notes to Condensed Consolidated Financial Statements
(Dollars in Thousands, Except per Share Amounts, or as Otherwise Indicated)
(Unaudited)
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
BASIS OF PRESENTATION
The accompanying unaudited Condensed Consolidated Financial Statements include the accounts of AptarGroup, Inc. and our subsidiaries. The terms “AptarGroup”, “Aptar”, “Company”, “we”, “us” or “our” as used herein refer to AptarGroup, Inc. and our subsidiaries. All significant intercompany accounts and transactions have been eliminated.
In the opinion of management, the unaudited Condensed Consolidated Financial Statements (the “Condensed Consolidated Financial Statements”) include all normal recurring adjustments necessary for a fair statement of consolidated financial position, results of operations, comprehensive income, changes in equity and cash flows for the interim periods presented. The accompanying Condensed Consolidated Financial Statements have been prepared by the Company, pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”). Certain information and footnote disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to such rules and regulations, although we believe that the disclosures made are adequate to make the information presented not misleading. Also, certain financial position data included herein was derived from the audited Consolidated Financial Statements included in our Annual Report on Form 10-K for the year ended December 31, 2021 but does not include all disclosures required by U.S. GAAP. Accordingly, these Condensed Consolidated Financial Statements and related notes should be read in conjunction with the audited Consolidated Financial Statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2021. The results of operations of any interim period are not necessarily indicative of the results that may be expected for the year.
The extent to which the COVID-19 pandemic impacts our financial results and operations for all three of our business segments will depend on future developments which are highly uncertain and cannot be predicted, including the emergence of new variants, the availability, adoption and efficacy of vaccines and boosters, the length of time it takes for normal economic and operating conditions to resume, additional governmental actions that may be taken and/or extended in response to any further resurgence of the virus and numerous other uncertainties. No impairments were recorded as of March 31, 2022 related to the COVID-19 pandemic. However, due to the general uncertainty surrounding the situation, including areas such as cost inflation, supply chain disruptions and labor shortages, future results could be materially impacted.
The war in Ukraine and the recent COVID-19 outbreak in China have not as of March 31, 2022 had a significant direct impact on our business in these regions, though the near-term visibility for both of these situations is expected to remain fluid and uncertain for the next several quarters. However, we have started to experience some indirect impacts on our business, including higher energy costs and certain supply chain interruptions.
ADOPTION OF RECENT ACCOUNTING STANDARDS
Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASUs”) to the FASB’s Accounting Standards Codification.
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance. This update requires annual disclosures about transactions with a government that are accounted for by applying a grant or contribution accounting model by analogy including the nature of the transaction, the financial statement line items affected by the transaction and any significant terms and conditions associated with the transactions. We adopted this guidance in the fourth quarter of 2021 using the prospective approach.
In March 2020, the FASB issued ASU 2020-04, which provides optional expedients and exceptions for applying U.S. GAAP to contracts, hedging relationships and other transactions affected by reference rate reform if certain criteria are met. The amendments to this update apply only to contracts, hedging relationships and other transactions that reference LIBOR or another reference rate expected to be discontinued because of reference rate reform. ASU 2020-04 was further amended in January 2021 by ASU 2021-01 which clarified the applicability of certain provisions. Both standards are effective upon issuance and can be adopted any time prior to December 31, 2022. The guidance in ASU 2020-04 and ASU 2021-01 is optional and may be elected over time as reference rate reform activities occur. During 2021, we amended the revolving credit facility to provide mechanics relating to a transition away from LIBOR (in the case of USD) and the designated benchmark rates for other available currencies and the replacement of any such applicable benchmark by a replacement alternative benchmark rate or mechanism for loans made in the applicable currency. We are evaluating any further impact this standard may have on our Condensed Consolidated Financial Statements and anticipate no further significant impacts.
Other accounting standards that have been issued by the FASB or other standards-setting bodies did not have a material impact on our Condensed Consolidated Financial Statements.
8

INCOME TAXES
We compute taxes on income in accordance with the tax rules and regulations of the many taxing authorities where income is earned. The income tax rates imposed by these taxing authorities may vary substantially. Taxable income may differ from pre-tax income for financial accounting purposes. To the extent that these differences create timing differences between the tax basis of an asset or liability and our reported amount in the financial statements, an appropriate provision for deferred income taxes is made.
We maintain our assertion that the cash and distributable reserves at our non-U.S. affiliates are indefinitely reinvested. As of March 31, 2022, under currently enacted laws, we do not have a balance of foreign earnings that will be subject to U.S. taxation upon repatriation. We will provide for the necessary withholding and local income taxes when management decides that an affiliate should make a distribution. These decisions are made taking into consideration the financial requirements of the non-U.S. affiliates and our global cash management goals.
We provide a liability for the amount of unrecognized tax benefits from uncertain tax positions. This liability is provided whenever we determine that a tax benefit will not meet a more-likely-than-not threshold for recognition.
We are subject to the examination of our returns and other tax matters by the U.S. Internal Revenue Service and other tax authorities and governmental bodies. We believe that we have adequately provided a tax reserve for any adjustments that may result from tax examinations or uncertain tax positions. However, the outcome of tax audits cannot be predicted with certainty. If any issues addressed in our tax audits are resolved in a manner inconsistent with our expectations, we could be required to adjust our provision for income taxes in the period such resolution occurs. The resolution of each of these audits is not expected to be material to our Condensed Consolidated Financial Statements.
 
NOTE 2 – REVENUE
Revenue by segment and geography for the three months ended March 31, 2022 and 2021 is as follows:
For the Three Months Ended March 31, 2022
SegmentEuropeDomesticLatin
America
AsiaTotal
Pharma$211,007 $106,341 $7,855 $17,259 $342,462 
Beauty + Home209,083 95,816 37,198 26,102 368,199 
Food + Beverage35,041 77,848 12,691 8,691 134,271 
Total$455,131 $280,005 $57,744 $52,052 $844,932 
For the Three Months Ended March 31, 2021
SegmentEuropeDomesticLatin
America
AsiaTotal
Pharma$207,947 $89,295 $5,370 $11,220 $313,832 
Beauty + Home189,240 98,807 34,342 24,557 346,946 
Food + Beverage28,502 67,063 9,253 11,158 115,976 
Total$425,689 $255,165 $48,965 $46,935 $776,754 
We perform our obligations under a contract with a customer by transferring goods and/or services in exchange for consideration from the customer. The timing of performance will sometimes differ from the timing of the receipt of the associated consideration from the customer, thus resulting in the recognition of a contract asset or a contract liability. We recognize a contract asset when we transfer control of goods or services to a customer prior to invoicing for the related performance obligation. The contract asset is transferred to accounts receivable when the product is shipped and invoiced to the customer. We recognize a contract liability if the customer's payment of consideration precedes the entity's performance.
The opening and closing balances of our contract asset and contract liabilities are as follows:
Balance as of December 31, 2021Balance as of March 31, 2022Increase/
(Decrease)
Contract asset (current)$16,878 $15,236 $(1,642)
Contract liability (current)86,340 91,711 5,371 
Contract liability (long-term)21,905 21,133 (772)
9

The differences in the opening and closing balances of our contract asset and contract liabilities are primarily the result of timing differences between our performance and the customer’s payment. The total amount of revenue recognized during the current year against contract liabilities is $25.4 million, including $21.4 million relating to contract liabilities at the beginning of the year. Current contract assets and long-term contract assets are included within the Prepaid and Other and Miscellaneous assets, respectively, while current contract liabilities and long-term contract liabilities are included within Accounts Payable, Accrued and Other Liabilities and Deferred and Other Non-current Liabilities, respectively, within our Condensed Consolidated Balance Sheets.
Determining the Transaction Price
In most cases, the transaction price for each performance obligation is stated in the contract. In determining the variable amounts of consideration within the transaction price (such as volume-based customer rebates), we include an estimate of the expected amount of consideration as revenue. We apply the expected value method based on all of the information (historical, current, and forecast) that is reasonably available and identify reasonable estimates based on this information. We apply the method consistently throughout the contract when estimating the effect of an uncertainty on the amount of variable consideration to which we will be entitled.
Product Sales
We primarily manufacture and sell drug delivery, consumer product dispensing and active material science solutions. The amount of consideration is typically fixed for customers. At the time of delivery, the customer is invoiced at the agreed-upon price. Revenue from product sales is typically recognized upon manufacture or shipment, when control of the goods transfers to the customer.
To determine when the control transfers, we typically assess, among other things, the shipping terms of the contract, shipping being one of the indicators of transfer of control. For a majority of product sales, control of the goods transfers to the customer at the time of shipment of the goods. Once the goods are shipped, we are precluded from redirecting the shipment to another customer. Therefore, our performance obligation is satisfied at the time of shipment. For sales in which control transfers upon delivery, shipping and/or handling costs that occur before the customer obtains control of the goods are deemed to be fulfillment activities and are accounted for as fulfillment costs and revenue is recorded upon final delivery to the customer location. We have elected to account for shipping and handling costs that occur after the customer has obtained control of a good as fulfillment costs rather than as a promised service. We do not have any material significant payment terms as payment is typically received shortly after the point of sale.
There also exist instances where we manufacture highly customized products that have no alternative use to us and for which we have an enforceable right to payment for performance completed to date. For these products, we transfer control and recognize revenue over time by measuring progress towards completion using the Output Method based on the number of products produced. As we normally make our products to a customer’s order, the time between production and shipment of our products is typically within a few weeks. We believe this measurement provides a faithful depiction of the transfer of goods as the costs incurred reflect the value of the products produced.
As a part of our customary business practice, we offer a standard warranty that the products will materially comply with the technical specifications and will be free from material defects. Because such warranties are not sold separately, do not provide for any service beyond a guarantee of a product’s initial specifications, and are not required by law, there is no revenue deferral for these types of warranties.
Tooling Sales
We also build or contract for molds and other tools (collectively defined as “tooling”) necessary to produce our products. As with product sales, we recognize revenue when control of the tool transfers to the customer. If the tooling is highly customized with no alternative use to us and we have an enforceable right to payment for performance completed to date, we transfer control and recognize revenue over time by measuring progress towards completion using the Input Method based on costs incurred relative to total estimated costs to completion. Otherwise, revenue for the tooling is recognized at the point in time when the customer approves the tool. We do not have any material significant payment terms as payment is typically either received during the mold-build process or shortly after completion.
In certain instances, we offer extended warranties on our tools above and beyond the normal standard warranties. We normally receive payment at the inception of the contract and recognize revenue over the term of the contract. We do not have any material extended warranties as of March 31, 2022 or December 31, 2021.
Service Sales
We also provide services to our pharmaceutical customers. As with product sales, we recognize revenue based on completion of each performance obligation of the service contract.
10

Contract Costs
We do not incur significant costs to obtain or fulfill revenue contracts.
Credit Risk
We are exposed to credit losses primarily through our product sales, tooling sales and services to our customers. We assess each customer’s ability to pay for the products we sell by conducting a credit review. The credit review considers our expected billing exposure and timing for payment and the customer’s established credit rating or our assessment of the customer’s creditworthiness based on our analysis of their financial statements when a credit rating is not available. We also consider contract terms and conditions, country and political risks, and business strategy in our evaluation. A credit limit is established for each customer based on the outcome of this review.
We monitor our ongoing credit exposure through active review of customer balances against contract terms and due dates. Our activities include timely account reconciliation, dispute resolution and payment confirmation. We may employ collection agencies and legal counsel to pursue recovery of defaulted receivables.
Current uncertainty in credit and market conditions due to the COVID-19 pandemic and the war in Ukraine may slow our collection efforts if customers experience significant difficulty accessing credit and paying their obligations or due to imposed sanctions delaying payment which may lead to higher than normal accounts receivable and increased CECL charges.
NOTE 3 - INVENTORIES
Inventories, by component net of reserves, consisted of:
March 31,
2022
December 31,
2021
Raw materials$145,249 $140,818 
Work in process143,591 137,654 
Finished goods170,773 162,992 
Total$459,613 $441,464 

NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill by reporting segment since December 31, 2021 are as follows:

PharmaBeauty +
Home
Food +
Beverage
Total
Balance as of December 31, 2021$520,197 $325,719 $128,241 $974,157 
Foreign currency exchange effects(9,386)(2,845)(169)(12,400)
Balance as of March 31, 2022$510,811 $322,874 $128,072 $961,757 
11

The table below shows a summary of intangible assets as of March 31, 2022 and December 31, 2021.
March 31, 2022December 31, 2021
Weighted Average Amortization Period (Years)Gross
Carrying
Amount
Accumulated
Amortization
Net
Value
Gross
Carrying
Amount
Accumulated
Amortization
Net
Value
Amortized intangible assets:
Patents13.9$2,870 $(1,664)$1,206 $2,767 $(1,528)$1,239 
Acquired technology11.5138,488 (47,989)90,499 140,936 (45,613)95,323 
Customer relationships13.3309,610 (82,634)226,976 311,964 (77,512)234,452 
Trademarks and trade names7.044,364 (24,084)20,280 44,893 (22,886)22,007 
License agreements and other39.216,045 (6,841)9,204 16,179 (6,857)9,322 
Total intangible assets13.2$511,377 $(163,212)$348,165 $516,739 $(154,396)$362,343 
Aggregate amortization expense for the intangible assets above for the three months ended March 31, 2022 and 2021 was $11,027 and $9,811, respectively.
Future estimated amortization expense for the years ending December 31 is as follows:
2022$33,180 
(remaining estimated amortization for 2022)
202343,721 
202440,541 
202539,088 
202636,874 
Thereafter154,761 
Future amortization expense may fluctuate depending on changes in foreign currency rates. The estimates for amortization expense noted above are based upon foreign exchange rates as of March 31, 2022.

NOTE 5 – INCOME TAXES
The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings and related estimated full year-taxes, adjusted for the impact of discrete quarterly items.
The effective tax rate for the three months ended March 31, 2022 and 2021, respectively, was 28.0% and 16.8%. The lower effective tax rate for the three months ended March 31, 2021 reflects incremental tax benefits from employee stock-based compensation of $8.0 million and a $2.9 million benefit from changes in U.S. state tax laws for the three months ended March 31, 2021.
NOTE 6 – DEBT
Notes Payable, Revolving Credit Facility and Overdrafts
At March 31, 2022 and December 31, 2021, our notes payable, revolving credit facility and overdrafts consisted of the following:
March 31,
2022
December 31,
2021
Revolving credit facility$ $144,383 
Overdrafts 6.25% to 13.40%
841 2,893 
$841 $147,276 
12

On June 30, 2021, we entered into an amended and restated multi-currency revolving credit facility (the "revolving credit facility") with a syndicate of banks to replace the existing facility (the "prior credit facility") maturing July 2022 and to amend and restate the unsecured term loan facility extended to our wholly-owned UK subsidiary under the prior credit facility (as amended, the "amended term facility"). The revolving credit facility matures in June 2026, subject to a maximum of two one-year extensions in certain circumstances, and provides for unsecured financing of up to $600 million available in the U.S. and to our wholly-owned UK subsidiary. The amended term facility matures in July 2022. The revolving credit facility can be drawn in various currencies including USD, EUR, GBP, and CHF to the equivalent of $600 million, which may be increased by up to $300 million subject to the satisfaction of certain conditions. As of March 31, 2022, no balance was utilized under the revolving credit facility in the U.S. or by our wholly-owned UK subsidiary and $56 million remained outstanding under the amended term facility. As of December 31, 2021, $133 million was utilized under the revolving credit facility in the U.S., €10 million (approximately $11.4 million) was utilized by our wholly-owned UK subsidiary and $56 million remained outstanding under the amended term facility.
There are no compensating balance requirements associated with our revolving credit facility. Each borrowing under the revolving credit facility will bear interest at rates based on LIBOR (in the case of USD), EURIBOR (in the case of EUR), SONIA (in the case of GBP), SARON (in the case of CHF), prime rates or other similar rates, in each case plus an applicable margin. The revolving credit facility provides mechanics relating to a transition away from LIBOR (in the case of USD) and the designated benchmark rates for other available currencies and the replacement of any such applicable benchmark by a replacement alternative benchmark rate or mechanism for loans made in the applicable currency. A facility fee on the total amount of the revolving credit facility is also payable quarterly, regardless of usage. The applicable margins for borrowings under the revolving credit facility and the facility fee percentage may change from time to time depending on changes in our consolidated leverage ratio.
In October 2020, we entered into an unsecured money market borrowing arrangement to provide short term financing of up to $30 million that is available in the U.S. No borrowing on this facility is permitted over a quarter end date. As such, no balance was utilized under this arrangement as of March 31, 2022 or December 31, 2021.
Long-Term Obligations
On March 7, 2022, we issued $400 million aggregate principal amount of 3.600% Senior Notes due March 2032 in an underwritten public offering. The form and terms of the notes were established pursuant to an Indenture, dated as of March 7, 2022, as amended and supplemented by a First Supplemental Indenture, dated as of March 7, 2022, each between the Company and U.S. Bank Trust Company, National Association, as trustee. Interest is payable semi-annually in arrears. The notes are unsecured obligations and rank equally in right of payment with all of our other existing and future senior, unsecured indebtedness.
At March 31, 2022 and December 31, 2021, our long-term obligations consisted of the following:
March 31, 2022December 31, 2021
Notes payable 0.00% – 14.42%, due in monthly and annual installments through 2028
$26,087 $22,785 
Senior unsecured notes 3.2%, due in 2022
75,000 75,000 
Senior unsecured debts 1.38% USD floating swapped to 1.36% EUR fixed, due in 2022
56,000 56,000 
Senior unsecured notes 3.5%, due in 2023
125,000 125,000 
Senior unsecured notes 1.0%, due in 2023
110,640 113,830 
Senior unsecured notes 3.4%, due in 2024
50,000 50,000 
Senior unsecured notes 3.5%, due in 2024
100,000 100,000 
Senior unsecured notes 1.2%, due in 2024
221,280 227,660 
Senior unsecured notes 3.6%, due in 2025
125,000 125,000 
Senior unsecured notes 3.6%, due in 2026
125,000 125,000 
Senior unsecured notes 3.6%, due in 2032, net of discount of $1,027
398,973  
Finance Lease Liabilities29,284 30,185 
Unamortized debt issuance costs(5,236)(1,085)
$1,437,028 $1,049,375 
Current maturities of long-term obligations(142,178)(142,351)
Total long-term obligations$1,294,850 $907,024 

13

The aggregate long-term maturities, excluding finance lease liabilities, which are disclosed in Note 7, due annually from the current balance sheet date for the next five years are:
Year One$138,729 
Year Two343,403 
Year Three276,394 
Year Four254,268 
Year Five1,103 
Thereafter399,083 
Covenants
Our revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including:
RequirementLevel at March 31, 2022
Consolidated Leverage Ratio (1) 
Maximum of 3.50 to 1.00
 
1.83 to 1.00
Consolidated Interest Coverage Ratio (1) 
Minimum of 3.00 to 1.00
 
18.90 to 1.00
________________________________________
(1)Definitions of ratios are included as part of the revolving credit facility agreement and the private placement agreements.
NOTE 7 – LEASES
We lease certain warehouse, plant and office facilities as well as certain equipment under non-cancelable operating and finance leases expiring at various dates through the year 2034. Most of the operating leases contain renewal options and certain leases include options to purchase the related asset during or at the end of the lease term.
Amortization expense related to finance leases is included in depreciation expense while rent expense related to operating leases is included within cost of sales and selling, research & development and administrative expenses (“SG&A”).
The components of lease expense for the three months ended March 31, 2022 and 2021 were as follows:
Three Months Ended March 31,20222021
Operating lease cost$5,281 $5,789 
Finance lease cost:
Amortization of right-of-use assets$1,129 $976 
Interest on lease liabilities325 312 
Total finance lease cost$1,454 $1,288 
Short-term lease and variable lease costs$3,982 $3,128 
Supplemental cash flow information related to leases was as follows:
Three Months Ended March 31,20222021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$5,500 $5,755 
Operating cash flows from finance leases335 349 
Financing cash flows from finance leases1,179 1,198 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$6,406 $1,496 
Finance leases599 47 
14

NOTE 8 – RETIREMENT AND DEFERRED COMPENSATION PLANS
Effective January 1, 2021, our domestic noncontributory retirement plans were closed to new employees and employees who were rehired after December 31, 2020. These employees are instead eligible for additional contribution to their defined contribution 401(k) employee savings plan. All domestic employees with hire/rehire dates prior to January 1, 2021 are still eligible for the domestic pension plans and continue to accrue plan benefits after this date.
Components of Net Periodic Benefit Cost:
Domestic PlansForeign Plans
Three Months Ended March 31,2022202120222021
Service cost$3,945 $4,227 $1,970 $2,078 
Interest cost1,742 1,611 373 218 
Expected return on plan assets(3,227)(3,073)(727)(723)
Amortization of net loss1,667 2,503 444 589 
Amortization of prior service cost  38 45 
Net periodic benefit cost$4,127 $5,268 $2,098 $2,207 
The components of net periodic benefit cost, other than the service cost component, are included in the line Miscellaneous, net in the Condensed Consolidated Statements of Income.
Employer Contributions
We currently have no minimum funding requirements for our domestic and foreign plans. We contributed $15.2 million to our domestic defined benefit plans during the three months ended March 31, 2022 and we do not expect additional significant payments during 2022. We have contributed approximately $0.5 million to our foreign defined benefit plans during the three months ended March 31, 2022 and do not expect additional significant contributions during 2022.
NOTE 9 – ACCUMULATED OTHER COMPREHENSIVE INCOME
Changes in Accumulated Other Comprehensive (Loss) Income by Component:
Foreign CurrencyDefined Benefit Pension PlansDerivativesTotal
Balance - December 31, 2020$(178,025)$(102,322)$