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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 SEPTEMBER 30, 2024
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-20200630x10q002.jpg
AptarGroup, Inc.
Delaware36-3853103
(State of Incorporation)(I.R.S. Employer Identification No.)
265 EXCHANGE DRIVE, SUITE 301, CRYSTAL LAKE, IL 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 October 21, 2024, was 66,543,252 shares.

AptarGroup, Inc.
Form 10-Q
Quarter Ended September 30, 2024
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
September 30,		Nine Months Ended
September 30,
2024202320242023
Net Sales$909,291 $892,997 $2,734,802 $2,648,970 
Operating Expenses:
Cost of sales (exclusive of depreciation and amortization shown below)558,511 566,691 1,708,707 1,697,824 
Selling, research & development and administrative141,604 138,137 443,714 427,488 
Depreciation and amortization67,015 62,686 196,332 184,212 
Restructuring initiatives3,864 6,161 9,659 19,628 
Total Operating Expenses770,994 773,675 2,358,412 2,329,152 
Operating Income138,297 119,322 376,390 319,818 
Other (Expense) Income:
Interest expense(12,290)(9,984)(32,526)(29,900)
Interest income3,022 946 9,022 2,266 
Net investment gain (loss)1,043 (1,240)1,495 1,839 
Equity in results of affiliates(77)1,002 (168)1,514 
Miscellaneous income (expense), net1,136 3 (518)(1,341)
Total Other Expense(7,166)(9,273)(22,695)(25,622)
Income before Income Taxes131,131 110,049 353,695 294,196 
Provision for Income Taxes31,209 25,751 80,382 72,265 
Net Income$99,922 $84,298 $273,313 $221,931 
Net Loss (Gain) Attributable to Noncontrolling Interests$117 $(2)$284 $201 
Net Income Attributable to AptarGroup, Inc.$100,039 $84,296 $273,597 $222,132 
Net Income Attributable to AptarGroup, Inc. per Common Share:
Basic$1.51 $1.28 $4.13 $3.39 
Diluted$1.48 $1.26 $4.05 $3.32 
Average Number of Shares Outstanding:
Basic66,445 65,707 66,274 65,550 
Diluted67,716 67,035 67,574 66,865 
Dividends per Common Share$0.45 $0.41 $1.27 $1.17 

See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
1
AptarGroup, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
In thousands
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Net Income$99,922 $84,298 $273,313 $221,931 
Other Comprehensive Income (Loss):
Foreign currency translation adjustments66,736 (52,514)625 (28,639)
Changes in derivative (losses) gains, net of tax(5,711)2,707 (202)(2,424)
Defined benefit pension plan, net of tax
Actuarial (loss) gain, net of tax(634)(5)(532)63 
Amortization of prior service cost included in net income, net of tax22 33 62 98 
Amortization of net loss included in net income, net of tax214 161 578 483 
Total defined benefit pension plan, net of tax(398)189 108 644 
Total other comprehensive income (loss)60,627 (49,618)531 (30,419)
Comprehensive Income160,549 34,680 273,844 191,512 
Comprehensive (Income) Loss Attributable to Noncontrolling Interests(866)88 (158)319 
Comprehensive Income Attributable to AptarGroup, Inc.$159,683 $34,768 $273,686 $191,831 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
2
AptarGroup, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In thousands
September 30, 2024December 31, 2023
Assets
Cash and equivalents$325,524 $223,643 
Short-term investments2,387 — 
Accounts and notes receivable, less current expected credit loss (“CECL”) of $14,264 in 2024 and $16,217 in 2023
698,989 677,822 
Inventories488,540 513,053 
Prepaid and other150,164 134,761 
Total Current Assets1,665,604 1,549,279 
Land29,924 30,090 
Buildings and improvements776,798 748,897 
Machinery and equipment3,270,657 3,183,097 
Property, Plant and Equipment, Gross4,077,379 3,962,084 
Less: Accumulated depreciation(2,572,170)(2,484,021)
Property, Plant and Equipment, Net1,505,209 1,478,063 
Investments in equity securities51,052 49,203 
Goodwill968,293 963,418 
Intangible assets, net271,215 283,211 
Operating lease right-of-use assets75,416 59,074 
Miscellaneous88,426 69,642 
Total Other Assets1,454,402 1,424,548 
Total Assets$4,625,215 $4,451,890 
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
September 30, 2024December 31, 2023
Liabilities and Stockholders’ Equity
Current Liabilities:
Revolving credit facility and overdrafts
$222,817 $81,794 
Current maturities of long-term obligations, net of unamortized debt issuance costs30,295 376,426 
Accounts payable, accrued and other liabilities773,540 793,089 
Total Current Liabilities1,026,652 1,251,309 
Long-Term Obligations, net of unamortized debt issuance costs822,731 681,188 
Deferred income taxes13,896 19,016 
Retirement and deferred compensation plans71,853 62,795 
Operating lease liabilities58,864 45,267 
Deferred and other non-current liabilities77,578 71,017 
Commitments and contingencies— — 
Total Deferred Liabilities and Other222,191 198,095 
AptarGroup, Inc. stockholders’ equity
Common stock, $.01 par value, 199 million shares authorized, 72.3 million and 71.7 million shares issued as of September 30, 2024 and December 31, 2023, respectively
723 717 
Capital in excess of par value1,107,597 1,044,429 
Retained earnings2,299,540 2,109,816 
Accumulated other comprehensive loss(308,880)(308,734)
Less: Treasury stock at cost, 5.8 million and 5.8 million shares as of September 30, 2024 and December 31, 2023
(559,971)(539,404)
Total AptarGroup, Inc. Stockholders’ Equity2,539,009 2,306,824 
Noncontrolling interests in subsidiaries14,632 14,474 
Total Stockholders’ Equity2,553,641 2,321,298 
Total Liabilities and Stockholders’ Equity$4,625,215 $4,451,890 
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
September 30, 2024 and 2023Retained EarningsAccumulated
Other
Comprehensive (Loss) Income		Common
Stock
Par Value		Treasury
Stock		Capital in
Excess of
Par Value		Non-
Controlling
Interest		Total
Equity
Balance - June 30, 2023$2,017,065 $(321,913)$713 $(526,484)$1,005,007 $14,038 $2,188,426 
Net income 84,296 — — — — 2 84,298 
Foreign currency translation adjustments(1)(52,423)— — — (90)(52,514)
Changes in unrecognized pension gains and related amortization, net of tax— 189 — — — — 189 
Changes in derivative losses, net of tax
— 2,707 — — — — 2,707 
Stock awards and option exercises— — 2 2,114 23,656 — 25,772 
Cash dividends declared on common stock(26,926)— — — — — (26,926)
Treasury stock purchased— — — (8,263)— — (8,263)
Balance - September 30, 2023$2,074,434 $(371,440)$715 $(532,633)$1,028,663 $13,950 $2,213,689 
Balance - June 30, 2024$2,229,377 $(368,524)$721 $(547,685)$1,082,560 $13,766 $2,410,215 
Net income (loss)100,039 — — — — (117)99,922 
Foreign currency translation adjustments— 65,753 — — — 983 66,736 
Changes in unrecognized pension losses and related amortization, net of tax— (398)— — — — (398)
Changes in derivative losses, net of tax— (5,711)— — — — (5,711)
Stock awards and option exercises— — 2 1,883 25,037 — 26,922 
Cash dividends declared on common stock(29,876)— — — — — (29,876)
Treasury stock purchased— — — (14,169)— — (14,169)
Balance - September 30, 2024$2,299,540 $(308,880)$723 $(559,971)$1,107,597 $14,632 $2,553,641 
5
In thousands
Nine Months EndedAptarGroup, Inc. Stockholders’ Equity
September 30, 2024 and 2023Retained
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, 2022
$1,929,240 $(341,366)$709 $(503,266)$968,618 $14,269 $2,068,204 
Net income (loss)222,132 — — — — (201)221,931 
Foreign currency translation adjustments(227)(28,294)— — — (118)(28,639)
Changes in unrecognized pension gains and related amortization, net of tax
— 644 — — — — 644 
Changes in derivative losses, net of tax
— (2,424)— — — — (2,424)
Stock awards and option exercises— — 6 7,935 60,045 — 67,986 
Cash dividends declared on common stock(76,711)— — — — — (76,711)
Treasury stock purchased— — — (37,302)— — (37,302)
Balance - September 30, 2023$2,074,434 $(371,440)$715 $(532,633)$1,028,663 $13,950 $2,213,689 
Balance - December 31, 2023
$2,109,816 $(308,734)$717 $(539,404)$1,044,429 $14,474 $2,321,298 
Net income (loss)273,597 — — — — (284)273,313 
Foreign currency translation adjustments235 (52)— — — 442 625 
Changes in unrecognized pension gains and related amortization, net of tax
— 108 — — — — 108 
Changes in derivative losses, net of tax— (202)— — — — (202)
Stock awards and option exercises— — 6 10,736 63,168 — 73,910 
Cash dividends declared on common stock(84,108)— — — — — (84,108)
Treasury stock purchased— — — (31,303)— — (31,303)
Balance - September 30, 2024$2,299,540 $(308,880)$723 $(559,971)$1,107,597 $14,632 $2,553,641 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
6
AptarGroup, Inc.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
In thousands, brackets denote cash outflows
Nine Months Ended September 30,20242023
Cash Flows from Operating Activities:
Net income$273,313 $221,931 
Adjustments to reconcile net income to net cash provided by operations:
Depreciation162,925 150,718 
Amortization33,407 33,494 
Stock-based compensation37,962 36,084 
(Release) provision for CECL
(1,221)3,449 
Gain on disposition of fixed assets(462)(3,753)
Net gain on remeasurement of equity securities(1,495)(1,839)
Deferred income taxes(11,653)(16,978)
Defined benefit plan expense9,296 10,659 
Equity in results of affiliates168 (1,514)
Changes in balance sheet items, excluding effects from foreign currency adjustments:
Accounts and other receivables(24,054)(43,061)
Inventories22,653 (5,188)
Prepaid and other current assets(13,970)(19,236)
Accounts payable, accrued and other liabilities(14,371)3,860 
Income taxes payable6,672 (8,732)
Retirement and deferred compensation plan liabilities(3,832)1,323 
Other changes, net(10,164)(5,615)
Net Cash Provided by Operations465,174 355,602 
Cash Flows from Investing Activities:
Capital expenditures(210,416)(231,199)
Proceeds from sale of property, plant and equipment1,020 6,037 
Maturity of short-term investment(2,242)— 
Acquisition of businesses, net of cash acquired and release of escrow— (16,570)
Acquisition of intangible assets, net(13,242)(3,648)
Proceeds from sale of investment in equity securities— 5,604 
Notes receivable, net(776)439 
Net Cash Used by Investing Activities(225,656)(239,337)
Cash Flows from Financing Activities:
Proceeds from notes payable and overdrafts22,302 24,392 
Repayments of notes payable and overdrafts(23,184)(27,863)
Proceeds and (repayments) of short-term revolving credit facility, net
138,058 123,514 
Proceeds from long-term obligations168,614 257 
Repayments of long-term obligations(372,393)(117,289)
Payment of contingent consideration obligation— (22,750)
Dividends paid(84,108)(76,711)
Proceeds from stock option exercises44,364 39,742 
Purchase of treasury stock(31,303)(37,302)
Net Cash Used by Financing Activities(137,650)(94,010)
Effect of Exchange Rate Changes on Cash13 (12,914)
Net Increase in Cash and Equivalents and Restricted Cash
101,881 9,341 
Cash and Equivalents and Restricted Cash at Beginning of Period223,643 142,732 
Cash and Equivalents and Restricted Cash at End of Period$325,524 $152,073 
7
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 Metaphase acquisition.
Nine Months Ended September 30,20242023
Cash and equivalents$325,524 $151,573 
Restricted cash included in prepaid and other— 500 
Total Cash and Equivalents and Restricted Cash shown in the Statement of Cash Flows$325,524 $152,073 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
8
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. Certain previously reported amounts have been reclassified to conform to the current period presentation.
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, 2023 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, 2023. The results of operations of any interim period are not necessarily indicative of the results that may be expected for the year.
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 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 could 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. We adopted this guidance in the second quarter of 2023 and have transitioned away from the London Interbank Offered Rate (“LIBOR”) to the Secured Overnight Financing Rate (“SOFR”) in our revolving credit facility.
In November 2023, the FASB issued ASU 2023-07, Improvement to Reportable Segment Disclosures, which requires enhanced disclosures about significant segment expenses on an annual and interim basis. The amendments in ASU 2023-07 are effective for fiscal years beginning after December 15, 2023 and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted, and are to be applied on a retrospective basis. We are evaluating the impact of the standard on our segment reporting disclosures.
In December 2023, the FASB issued ASU 2023-09, Improvements to Income Tax Disclosures, which is intended to improve income tax disclosure requirements by requiring (i) consistent categories and greater disaggregation of information in the rate reconciliation and (ii) the disaggregation of income taxes paid by jurisdiction. The guidance makes several other changes to income tax disclosure requirements. The amendments in ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and are required to be applied prospectively with the option of retrospective application. We are evaluating the impact of the standard on our income tax disclosures.
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.
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 U.S. GAAP financial accounting purposes. To the extent that these differences create temporary differences between the tax basis of an asset or liability and our reported amount in the U.S. GAAP financial statements, an appropriate provision for deferred income taxes is made.
9
We maintain our assertion that the cash and distributable reserves at our non-U.S. affiliates are indefinitely reinvested with the following exceptions: all earnings in Germany and the pre-2020 earnings in Italy, Switzerland and Colombia. As of September 30, 2024, 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. See Note 5 – Income Taxes for more information.
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 as well as 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 its expectations, we could be required to adjust its 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.
ASSETS HELD FOR SALE
Assets to be disposed of by sale are reported at the lower of their carrying amount or fair value less costs to sell, and are not depreciated while they are held for sale. During the second quarter of 2023, we recorded $0.7 million as assets held for sale within prepaid and other on our Condensed Consolidated Balance Sheets related to three buildings located in France. During the third quarter of 2023, two of the three buildings were sold and we recognized a $0.8 million gain on sale. As of September 30, 2024, one building is still held for sale and expected to be sold during 2025.
SUPPLY CHAIN FINANCE PROGRAM
We facilitate a supply chain finance program (“SCF”) across Europe and the U.S. that is administered by a third-party platform. Eligible suppliers can elect to receive early payment of invoices, less an interest deduction, and negotiate their receivable sales arrangements through the third-party platform on behalf of the respective SCF bank. We are not a party to those agreements, and the terms of our payment obligations are not impacted by a supplier's participation in the SCF. Accordingly, we have concluded that this program continues to be a trade payable program and is not indicative of a borrowing arrangement. Under these agreements, the average payment terms range from 60 to 120 days and are based on industry standards and best practices within each of our regions.
All outstanding amounts related to suppliers participating in the SCF are recorded within accounts payable, accrued and other liabilities in our Condensed Consolidated Balance Sheets, and associated payments are included in operating activities within our Condensed Consolidated Statements of Cash Flows. As of September 30, 2024, the amounts due to suppliers participating in the SCF and included in accounts payable, accrued and other liabilities were approximately $35.0 million.
Collection and payment periods tend to be longer for our operations located outside the United States due to local business practices. We have also seen an increasing trend in pressure from certain customers to lengthen their payment terms. As the majority of our products are made to order, we have not needed to keep significant amounts of finished goods inventory to meet customer requirements. However, some of our contracts specify an amount of finished goods safety stock we are required to maintain.
To the extent our financial position allows and there is a clear financial benefit, we from time-to-time benefit from early payment discounts with some suppliers. We have lengthened the payment terms with our suppliers to be in line with customer trends. While we have offered a third party alternative for our suppliers to receive payments sooner, we generally do not utilize these offerings from our customers as the economic conditions currently are not beneficial for us.
 
10
NOTE 2 – REVENUE
In prior years, our geographic revenue disclosure was based on shipped from location. Beginning in 2024, we have started to report our geographic sales based on shipped to locations to give the reader a better understanding of the geographies we serve. Revenue by segment and geography based on shipped to locations for the three and nine months ended September 30, 2024 and 2023 were as follows:
For the Three Months Ended September 30, 2024
SegmentEuropeDomesticLatin
America		AsiaTotal
Aptar Pharma$204,835 $142,747 $10,925 $62,087 $420,594 
Aptar Beauty182,708 59,954 37,565 22,632 302,859 
Aptar Closures57,586 88,870 20,665 18,717 185,838 
Total$445,129 $291,571 $69,155 $103,436 $909,291 
For the Three Months Ended September 30, 2023
SegmentEuropeDomesticLatin
America		AsiaTotal
Aptar Pharma$198,546 $125,730 $13,549 $51,363 $389,188 
Aptar Beauty201,127 55,674 42,497 24,682 323,980 
Aptar Closures55,508 85,612 21,863 16,846 179,829 
Total$455,181 $267,016 $77,909 $92,891 $892,997 
For the Nine Months Ended September 30, 2024
SegmentEuropeDomesticLatin
America		AsiaTotal
Aptar Pharma$624,503 $407,291 $36,848 $173,778 $1,242,420 
Aptar Beauty579,638 189,849 117,959 64,220 951,666 
Aptar Closures165,507 262,154 64,221 48,834 540,716 
Total$1,369,648 $859,294 $219,028 $286,832 $2,734,802 
For the Nine Months Ended September 30, 2023
SegmentEuropeDomesticLatin
America		AsiaTotal
Aptar Pharma$598,728 $354,655 $37,415 $145,136 $1,135,934 
Aptar Beauty622,253 171,602 118,563 67,538 979,956 
Aptar Closures171,645 251,780 63,108 46,547 533,080 
Total$1,392,626 $778,037 $219,086 $259,221 $2,648,970 
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 invoicing for 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 were as follows:
Balance as of December 31, 2023Balance as of September 30, 2024Increase/
(Decrease)
Contract asset (current)$18,033 $15,000 $(3,033)
Contract liability (current)60,507 64,904 4,397 
Contract liability (long-term)37,756 43,235 5,479 
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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 invoicing. The total amount of revenue recognized during the current year against contract liabilities is $76.5 million, including $40.2 million relating to contract liabilities at the beginning of the year. Current contract assets are included within Prepaid and other, 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 and consumer product dosing, dispensing and protection technologies. 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 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 September 30, 2024 or December 31, 2023.
Service Sales
We also provide services to our customers. As with product sales, we recognize revenue based on completion of each performance obligation of the service contract. Milestone deliverables and upfront payments are tied to specific performance obligations and recognized upon satisfaction of the individual performance obligation.
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Royalty Revenue
We determine the amount and timing of royalty revenue based on our contractual agreements with customers. We recognize royalty revenue when earned under the terms of the agreements and when we consider realization of payment to be probable.
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.
NOTE 3 - INVENTORIES
Inventories, by component net of reserves, consisted of:
September 30,
2024		December 31,
2023
Raw materials$140,194 $145,798 
Work in process179,857 176,191 
Finished goods168,489 191,064 
Total$488,540 $513,053 

NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the nine months ended September 30, 2024 by reporting segment were as follows:
Aptar
Pharma		Aptar
Beauty		Aptar ClosuresTotal
Balance as of December 31, 2023$508,447 $287,097 $167,874 $963,418 
Foreign currency exchange effects4,062 986 (173)4,875 
Balance as of September 30, 2024$512,509 $288,083 $167,701 $968,293 
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The table below shows a summary of intangible assets as of September 30, 2024 and December 31, 2023.
September 30, 2024December 31, 2023
Weighted Average Amortization Period (Years)Gross
Carrying
Amount		Accumulated
Amortization		Net
Value		Gross
Carrying
Amount		Accumulated
Amortization		Net
Value
Amortized intangible assets:
Patents12.4$18,862 $(2,219)$16,643 $7,362 $(1,754)$5,608 
Acquired technology11.3143,652 (80,584)63,068 142,837 (70,520)72,317 
Customer relationships13.6310,205 (143,613)166,592 308,889 (124,648)184,241 
Trademarks and trade names7.944,187 (36,717)7,470 43,932 (33,368)10,564 
License agreements and other20.326,471 (9,029)17,442 17,213 (6,732)10,481 
Total intangible assets13.3$543,377 $(272,162)$271,215 $520,233 $(237,022)$283,211 
Aggregate amortization expense for the intangible assets above for the quarters ended September 30, 2024 and 2023 was $11,733 and $11,400, respectively. Aggregate amortization expense for the intangible assets above for the nine months ended September 30, 2024 and 2023 was $33,407 and $33,494, respectively.
As of September 30, 2024, future estimated amortization expense for the years ending December 31 is as follows:
2024$11,067 
(remaining estimated amortization for 2024)
202543,616 
202641,540 
202733,354 
202829,203 
Thereafter112,435 
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 September 30, 2024.
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 Organization for Economic Co-operation and Development released Model Global Anti-Base Erosion rules under Pillar Two. Certain countries in which we operate have enacted laws implementing aspects of Pillar Two beginning in 2024. These enacted laws relate to the Pillar Two Income Inclusion Rule and Qualified Domestic Minimum Top-Up Tax with an effective date in 2024. We have analyzed the provisions in the applicable jurisdictions and provided for the appropriate tax amounts. We do not expect a material impact from the implementation of these rules for 2024 but we will continue to monitor future legislations for additional guidance.
The effective tax rate for the three months ended September 30, 2024 and 2023, respectively, was 23.8% and 23.4%. The effective tax rate for the three months ended September 30, 2024 was slightly higher than the same period of 2023 primarily due to an unfavorable mix of earnings forecasted in the second half of 2024.
The effective tax rate for the nine months ended September 30, 2024 and 2023, respectively, was 22.7% and 24.6%. On a nine-month basis, the effective tax rate was lower than the same period of 2023 primarily due to increased tax benefits from share-based compensation and tax incentives in certain non-U.S. jurisdictions for intellectual property development activities.
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NOTE 6 – DEBT
Revolving Credit Facility and Overdrafts
At September 30, 2024 and December 31, 2023, our revolving credit facility and overdrafts consisted of the following:
September 30,
2024		December 31,
2023
Revolving credit facility
$222,650 $80,662 
Overdraft
167 1,132 
$222,817 $81,794 
Aptar has a revolving credit facility (the “revolving credit facility”) with a syndicate of banks that provides us with unsecured financing of up to $600 million, which may be increased by up to $300 million more, subject to the satisfaction of certain conditions. The revolving credit facility is available in the U.S. and to our wholly-owned UK subsidiary and could be drawn in various currencies including USD, EUR, GBP, and CHF. The revolving credit facility was set to mature in June 2026, but on July 2, 2024, Aptar entered into a new amended and restated agreement (the “amended revolving credit facility”) that extended the maturity date to July 2029, subject to a maximum of two one-year extensions in certain circumstances, As of December 31, 2023, Aptar had utilized $36.5 million and €40.0 million ($44.2 million) under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary. As of September 30, 2024, Aptar had utilized €200 million ($222.7 million) under the amended revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary.
On July 2, 2024, we entered into a term loan with a syndicate of banks (the “Term Loan”). The Term Loan matures in July 2027 and enabled drawings on the loan until September 30, 2024 and provided for unsecured financing of up to $330 million available in the U.S. Funds are to be used to refinance near-term maturities and for general corporate purposes. As of September 30, 2024, $166 million was utilized under the Term Loan facility and the unused portion expired.
There are no compensating balance requirements associated with our amended revolving credit facility. Each borrowing under the amended revolving credit facility will bear interest at rates based on SOFR (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 amended revolving credit facility also provides mechanics relating to a transition away from 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 amended revolving credit facility is also payable quarterly, regardless of usage. The applicable margins for borrowings under the amended revolving credit facility and the facility fee percentage may change from time to time depending on changes in our consolidated leverage ratio.
Aptar has 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 September 30, 2024 or December 31, 2023.
Long-Term Obligations
On February 26, 2024, we repaid in full the $100 million 3.49% Senior Unsecured Notes that were due in February 2024. On July 19, 2024, we repaid in full the €200 million 1.17% Senior Unsecured Notes that were due in July 2024. On September 5, 2024, we repaid in full the $50 million 3.4% Senior Unsecured Notes that were due in September 2024. These were repaid using borrowings from our revolving credit facility or the Term Loan.
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At September 30, 2024 and December 31, 2023, our long-term obligations consisted of the following:
September 30, 2024December 31, 2023
Notes payable 0.10% – 2.25%, due in monthly and annual installments through 2031
$16,893 $14,988 
Senior unsecured notes 3.4%, due in 2024
— 50,000 
Senior unsecured notes 3.5%, due in 2024
— 100,000 
Senior unsecured notes 1.2%, due in 2024
— 220,810 
Senior unsecured notes 3.6%, due in 2025
125,000 125,000 
Senior unsecured notes 3.6%, due in 2026
125,000 125,000 
Term loan 6.4% floating, due in 2027
166,000 — 
Senior unsecured notes 3.6%, due in 2032, net of discount of $0.8 million
399,232 399,154 
Finance Lease Liabilities24,917 26,478 
Unamortized debt issuance costs(4,016)(3,816)
$853,026 $1,057,614 
Current maturities of long-term obligations(30,295)(376,426)
Total long-term obligations$822,731 $681,188 
The aggregate long-term maturities, excluding finance lease liabilities and unamortized debt issuance costs, which are discussed in Note 7, due annually from the current balance sheet date for the next five years and thereafter are:
Year One$26,912 
Year Two134,438 
Year Three271,276 
Year Four111 
Year Five78 
Thereafter399,310 
Covenants
Our amended revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including:
RequirementLevel at September 30, 2024
Consolidated Leverage Ratio (1) 
Maximum of 3.50 to 1.00
 
1.10 to 1.00
Consolidated Interest Coverage Ratio (1) 
Minimum of 3.00 to 1.00
 
16.81 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 2042. 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.
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The components of lease expense for the three and nine months ended September 30, 2024 and 2023 were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2024202320242023
Operating lease cost$4,795 $5,150 $14,530 $15,841 
Finance lease cost:
Amortization of right-of-use assets$1,715 $908 $4,976 $2,686 
Interest on lease liabilities299 289 897 883 
Total finance lease cost$2,014 $1,197 $5,873 $3,569 
Short-term lease and variable lease costs$5,255 $5,774 $15,451 $15,883 
Supplemental cash flow information related to leases were as follows:
Nine Months Ended September 30,20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$14,845 $15,993 
Operating cash flows from finance leases976 883 
Financing cash flows from finance leases2,305 2,377 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$31,819 $7,764 
Finance leases1,347 401 
NOTE 8 – RETIREMENT AND DEFERRED COMPENSATION PLANS
We have various noncontributory retirement plans covering certain of our domestic and foreign employees. Benefits under our retirement plans are based on participants’ years of service and annual compensation as defined by each plan. Annual cash contributions to fund pension costs accrued under our domestic plans are generally at least equal to the minimum funding amounts required by the Employee Retirement Income Security Act of 1974, as amended (“ERISA”). Certain pension commitments under our foreign plans are also funded according to local requirements or at our discretion.
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 September 30,2024202320242023
Service cost$2,366 $2,409 $1,605 $1,487 
Interest cost2,242 2,158 860 915 
Expected return on plan assets(3,116)(3,094)(549)(589)
Amortization of net loss— — 303 230 
Amortization of prior service cost— — 29 45 
Net periodic benefit cost$1,492 $1,473 $2,248 $2,088 
Curtailment— — (1,851)— 
Total Net periodic benefit cost$1,492 $1,473 $397 $2,088 
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Domestic PlansForeign Plans
Nine Months Ended September 30,2024202320242023
Service cost$7,097 $7,228 $4,838 $4,444 
Interest cost6,726 6,473 2,602 2,735 
Expected return on plan assets(9,347)(9,283)(1,671)(1,758)
Amortization of net loss— — 819 687 
Amortization of prior service cost— — 83 133 
Net periodic benefit cost$4,476 $4,418 $6,671 $6,241 
Curtailment— —