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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, 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 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, 2024, was 66,263,631 shares.


AptarGroup, Inc.
Form 10-Q
Quarter Ended March 31, 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 March 31,20242023
Net Sales$915,448 $860,067 
Operating Expenses:
Cost of sales (exclusive of depreciation and amortization shown below)582,756 557,422 
Selling, research & development and administrative152,780 147,923 
Depreciation and amortization64,349 59,259 
Restructuring initiatives3,480 11,524 
Total Operating Expenses803,365 776,128 
Operating Income112,083 83,939 
Other (Expense) Income:
Interest expense(10,175)(10,228)
Interest income2,898 672 
Net investment gain592 188 
Equity in results of affiliates(221)(131)
Miscellaneous expense, net(859)(1,171)
Total Other Expense(7,765)(10,670)
Income before Income Taxes104,318 73,269 
Provision for Income Taxes21,385 18,683 
Net Income$82,933 $54,586 
Net Loss Attributable to Noncontrolling Interests$171 $178 
Net Income Attributable to AptarGroup, Inc.$83,104 $54,764 
Net Income Attributable to AptarGroup, Inc. per Common Share:
Basic$1.26 $0.84 
Diluted$1.23 $0.82 
Average Number of Shares Outstanding:
Basic66,064 65,372 
Diluted67,432 66,735 
Dividends per Common Share$0.41 $0.38 

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 31,20242023
Net Income$82,933 $54,586 
Other Comprehensive (Loss) Income:
Foreign currency translation adjustments(42,102)25,624 
Changes in derivative gains (losses), net of tax2,908 (1,367)
Defined benefit pension plan, net of tax
Actuarial gain, net of tax80 61 
Amortization of prior service cost included in net income, net of tax20 32 
Amortization of net loss included in net income, net of tax183 160 
Total defined benefit pension plan, net of tax283 253 
Total other comprehensive (loss) income(38,911)24,510 
Comprehensive Income44,022 79,096 
Comprehensive Loss (Income) Attributable to Noncontrolling Interests400 (665)
Comprehensive Income Attributable to AptarGroup, Inc.$44,422 $78,431 
See accompanying unaudited Notes to Condensed Consolidated Financial Statements.
2

AptarGroup, Inc.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
In thousands
March 31, 2024December 31, 2023
Assets
Cash and equivalents$199,834 $223,643 
Short-term investments1,223  
Accounts and notes receivable, less current expected credit loss ("CECL") of $15,512 in 2024 and $16,217 in 2023
724,015 677,822 
Inventories496,840 513,053 
Prepaid and other138,097 134,761 
Total Current Assets1,560,009 1,549,279 
Land29,542 30,090 
Buildings and improvements751,174 748,897 
Machinery and equipment3,172,554 3,183,097 
Property, Plant and Equipment, Gross3,953,270 3,962,084 
Less: Accumulated depreciation(2,488,874)(2,484,021)
Property, Plant and Equipment, Net1,464,396 1,478,063 
Investments in equity securities48,911 49,203 
Goodwill953,255 963,418 
Intangible assets, net269,425 283,211 
Operating lease right-of-use assets59,211 59,074 
Miscellaneous81,879 69,642 
Total Other Assets1,412,681 1,424,548 
Total Assets$4,437,086 $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
March 31, 2024December 31, 2023
Liabilities and Stockholders’ Equity
Current Liabilities:
Notes payable, revolving credit facility and overdrafts$164,042 $81,794 
Current maturities of long-term obligations, net of unamortized debt issuance costs271,317 376,426 
Accounts payable, accrued and other liabilities760,779 793,089 
Total Current Liabilities1,196,138 1,251,309 
Long-Term Obligations, net of unamortized debt issuance costs680,358 681,188 
Deferred income taxes17,007 19,016 
Retirement and deferred compensation plans64,156 62,795 
Operating lease liabilities43,599 45,267 
Deferred and other non-current liabilities72,895 71,017 
Commitments and contingencies  
Total Deferred Liabilities and Other197,657 198,095 
AptarGroup, Inc. stockholders’ equity
Common stock, $.01 par value, 199 million shares authorized, 72.0 million and 71.7 million shares issued as of March 31, 2024 and December 31, 2023, respectively
720 717 
Capital in excess of par value1,075,329 1,044,429 
Retained earnings2,165,858 2,109,816 
Accumulated other comprehensive loss(347,418)(308,734)
Less: Treasury stock at cost, 5.8 million shares as of March 31, 2024 and December 31, 2023
(545,630)(539,404)
Total AptarGroup, Inc. Stockholders’ Equity2,348,859 2,306,824 
Noncontrolling interests in subsidiaries14,074 14,474 
Total Stockholders’ Equity2,362,933 2,321,298 
Total Liabilities and Stockholders’ Equity$4,437,086 $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
March 31, 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)54,764 — — — — (178)54,586 
Foreign currency translation adjustments(226)25,007 — — — 843 25,624 
Changes in unrecognized pension gains (losses) and related amortization, net of tax— 253 — — — — 253 
Changes in derivative gains (losses), net of tax— (1,367)— — — — (1,367)
Stock awards and option exercises— — 2 2,666 22,366 — 25,034 
Cash dividends declared on common stock(24,848)— — — — — (24,848)
Treasury stock purchased— — — (19,729)— — (19,729)
Balance - March 31, 2023$1,958,930 $(317,473)$711 $(520,329)$990,984 $14,934 $2,127,757 
Balance - December 31, 2023
$2,109,816 $(308,734)$717 $(539,404)$1,044,429 $14,474 $2,321,298 
Net income (loss)83,104 — — — — (171)82,933 
Foreign currency translation adjustments2 (41,875)— — — (229)(42,102)
Changes in unrecognized pension gains (losses) and related amortization, net of tax— 283 — — — — 283 
Changes in derivative gains (losses), net of tax— 2,908 — — — — 2,908 
Stock awards and option exercises— — 3 5,850 30,900 — 36,753 
Cash dividends declared on common stock(27,064)— — — — — (27,064)
Treasury stock purchased— — — (12,076)— — (12,076)
Balance - March 31, 2024$2,165,858 $(347,418)$720 $(545,630)$1,075,329 $14,074 $2,362,933 
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 31,20242023
Cash Flows from Operating Activities:
Net income$82,933 $54,586 
Adjustments to reconcile net income to net cash provided by operations:
Depreciation53,026 48,297 
Amortization11,323 10,962 
Stock-based compensation18,276 15,042 
(Release) Provision for CECL
(568)2,203 
Loss (gain) on disposition of fixed assets120 (302)
Net gain on remeasurement of equity securities(592)(188)
Deferred income taxes(7,958)(5,483)
Defined benefit plan expense3,724 3,537 
Equity in results of affiliates221 131 
Changes in balance sheet items, excluding effects from foreign currency adjustments:
Accounts and other receivables(56,527)(7,845)
Inventories7,266 (17,415)
Prepaid and other current assets(2,720)(20,578)
Accounts payable, accrued and other liabilities4,712 24,639 
Income taxes payable(2,954)(364)
Retirement and deferred compensation plan liabilities(13,058)(7,809)
Other changes, net(4,891)(1,109)
Net Cash Provided by Operations92,333 98,304 
Cash Flows from Investing Activities:
Capital expenditures(75,661)(77,825)
Proceeds from sale of property, plant and equipment175 635 
Purchase of short-term investments(1,066) 
Acquisition of businesses, net of cash acquired and release of escrow (11,209)
Acquisition of intangible assets, net (650)
Notes receivable, net(20)(132)
Net Cash Used by Investing Activities(76,572)(89,181)
Cash Flows from Financing Activities:
Proceeds from notes payable and overdrafts13,504 16,086 
Repayments of notes payable and overdrafts (7,473)
Proceeds and (repayments) of short term revolving credit facility, net68,838  
Proceeds from long-term obligations26 210 
Repayments of long-term obligations(101,320)(2,888)
Dividends paid(27,064)(24,848)
Proceeds from stock option exercises22,340 13,809 
Purchase of treasury stock(12,076)(19,729)
Net Cash Used by Financing Activities(35,752)(24,833)
Effect of Exchange Rate Changes on Cash(3,818)788 
Net Decrease in Cash and Equivalents and Restricted Cash(23,809)(14,922)
Cash and Equivalents and Restricted Cash at Beginning of Period223,643 142,732 
Cash and Equivalents and Restricted Cash at End of Period$199,834 $127,810 
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 Metaphase acquisition.
Three Months Ended March 31,20242023
Cash and equivalents$199,834 $126,810 
Restricted cash included in prepaid and other 1,000 
Total Cash and Equivalents and Restricted Cash shown in the Statement of Cash Flows$199,834 $127,810 
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. 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 is ASU 2023-09 are effective for fiscal years beginning after December 15, 2024, with early adoption permitted, and is 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.
8

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 March 31, 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 and other tax authorities and government 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.
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.
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 March 31, 2024, the amounts due to suppliers participating in the SCF and included in accounts payable, accrued and other liabilities were approximately $41.2 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.
 
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 months ended March 31, 2024 and 2023 were as follows:
For the Three Months Ended March 31, 2024
SegmentEuropeDomesticLatin
America
AsiaTotal
Aptar Pharma$212,175 $125,810 $12,622 $56,686 $407,293 
Aptar Beauty206,190 63,277 38,187 19,666 327,320 
Aptar Closures56,027 88,816 21,273 14,719 180,835 
Total$474,392 $277,903 $72,082 $91,071 $915,448 
9

For the Three Months Ended March 31, 2023
SegmentEuropeDomesticLatin
America
AsiaTotal
Aptar Pharma$192,120 $115,312 $8,197 $40,417 $356,046 
Aptar Beauty209,352 58,988 36,565 21,484 326,389 
Aptar Closures57,327 84,768 20,366 15,171 177,632 
Total$458,799 $259,068 $65,128 $77,072 $860,067 
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 March 31, 2024Increase/
(Decrease)
Contract asset (current)$18,033 $16,562 $(1,471)
Contract liability (current)60,507 62,880 2,373 
Contract liability (long-term)37,756 42,458 4,702 
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 $33.1 million, including $25.6 million relating to contract liabilities at the beginning of the year. Current 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 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.
10

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 March 31, 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.
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:
March 31,
2024
December 31,
2023
Raw materials$138,096 $145,798 
Work in process182,190 176,191 
Finished goods176,554 191,064 
Total$496,840 $513,053 

11

NOTE 4 – GOODWILL AND OTHER INTANGIBLE ASSETS
The changes in the carrying amount of goodwill for the three months ended March 31, 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 effects(7,739)(1,857)(567)(10,163)
Balance as of March 31, 2024$500,708 $285,240 $167,307 $953,255 
The table below shows a summary of intangible assets as of March 31, 2024 and December 31, 2023.
March 31, 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:
Patents9.9$7,239 $(1,882)$5,357 $7,362 $(1,754)$5,608 
Acquired technology11.2140,840 (72,926)67,914 142,837 (70,520)72,317 
Customer relationships13.5306,749 (129,631)177,118 308,889 (124,648)184,241 
Trademarks and trade names7.943,519 (34,532)8,987 43,932 (33,368)10,564 
License agreements and other32.316,935 (6,886)10,049 17,213 (6,732)10,481 
Total intangible assets13.4$515,282 $(245,857)$269,425 $520,233 $(237,022)$283,211 
Aggregate amortization expense for the intangible assets above for the three months ended March 31, 2024 and 2023 was $11,323 and $10,963, respectively.
As of March 31, 2024, future estimated amortization expense for the years ending December 31 is as follows:
2024$31,287 
(remaining estimated amortization for 2024)
202539,865 
202637,545 
202730,284 
202821,166 
Thereafter109,278 
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, 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 safe harbors, Income Inclusion Rule and Qualified Domestic Minimum Tax beginning 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 March 31, 2024 and 2023, respectively, was 20.5% and 25.5%. The effective tax rate for the three months ended March 31, 2024 reflects a favorable mix of earnings, increased tax benefits from share-based compensation and tax incentives in certain non-US jurisdictions from intellectual property development activities.
12

NOTE 6 – DEBT
Notes Payable, Revolving Credit Facility and Overdrafts
At March 31, 2024 and December 31, 2023, our notes payable, revolving credit facility and overdrafts consisted of the following:
March 31,
2024
December 31,
2023
Revolving credit facility 6.33% to 6.43%
$149,500 $80,662 
Overdrafts 2.11% to 3.71%
14,542 1,132 
$164,042 $81,794 
Aptar has a revolving credit facility (the "revolving credit facility') with a syndicate of banks which matures in June 2026. The revolving credit facility is 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 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, 2024, $149.5 million was utilized under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary. As of December 31, 2023, $36.5 million and €40.0 million ($44.2 million) was utilized under the revolving credit facility in the U.S. and no balance was utilized by our wholly-owned UK subsidiary.
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 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 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 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.
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 March 31, 2024 or December 31, 2023.
Long-Term Obligations
On February 26, 2024, we repaid in full the $100 million 3.49% Senior Notes that were due in February 2024.
At March 31, 2024 and December 31, 2023, our long-term obligations consisted of the following:
March 31, 2024December 31, 2023
Notes payable 0.00% – 2.25%, due in monthly and annual installments through 2030
$14,207 $14,988 
Senior unsecured notes 3.4%, due in 2024
50,000 50,000 
Senior unsecured notes 3.5%, due in 2024
 100,000 
Senior unsecured notes 1.2%, due in 2024
215,820 220,810 
Senior unsecured notes 3.6%, due in 2025
125,000 125,000 
Senior unsecured notes 3.6%, due in 2026
125,000 125,000 
Senior unsecured notes 3.6%, due in 2032, net of discount of $0.8 million
399,180 399,154 
Finance Lease Liabilities26,115 26,478 
Unamortized debt issuance costs(3,647)(3,816)
$951,675 $1,057,614 
Current maturities of long-term obligations(271,317)(376,426)
Total long-term obligations$680,358 $681,188 
13

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$267,768 
Year Two131,503 
Year Three130,561 
Year Four74 
Year Five59 
Thereafter399,242 
Covenants
Our revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including:
RequirementLevel at March 31, 2024
Consolidated Leverage Ratio (1) 
Maximum of 3.50 to 1.00
 
1.39 to 1.00
Consolidated Interest Coverage Ratio (1) 
Minimum of 3.00 to 1.00
 
16.75 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.
The components of lease expense for the three months ended March 31, 2024 and 2023 were as follows:
Three Months Ended March 31,20242023
Operating lease cost$4,881 $5,414 
Finance lease cost:
Amortization of right-of-use assets$1,670 $911 
Interest on lease liabilities296 299 
Total finance lease cost$1,966 $1,210 
Short-term lease and variable lease costs$5,198 $4,912 
Supplemental cash flow information related to leases were as follows:
Three Months Ended March 31,20242023
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$5,820 $5,395 
Operating cash flows from finance leases126 301 
Financing cash flows from finance leases1,199 830 
Right-of-use assets obtained in exchange for lease obligations:
Operating leases$5,397 $4,844 
Finance leases191 200 
14

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 March 31,2024202320242023
Service cost$2,365 $2,409 $1,630 $1,470 
Interest cost2,232 2,158 875 903 
Expected return on plan assets(3,101)(3,094)(564)(580)
Amortization of net loss  259 228 
Amortization of prior service cost  28 43 
Net periodic benefit cost$1,496 $1,473 $2,228 $2,064 
The components of net periodic benefit cost, other than the service cost component, are included in the line miscellaneous income (expense), net in the Condensed Consolidated Statements of Income.
Employer Contributions
We currently have no minimum funding requirements for our domestic and foreign plans. There were no contributions to our domestic defined benefit plans during the three months ended March 31, 2024 and we do not expect significant payments during the rest of 2024. We contributed $0.4 million to our foreign defined benefit plans during the three months ended March 31, 2024 and do not expect additional significant contributions during the rest of 2024.
NOTE 9 – ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME
Changes in Accumulated Other Comprehensive (Loss) Income by Component:
Foreign CurrencyDefined Benefit Pension PlansDerivativesTotal
Balance - December 31, 2022$(328,740)$(5,951)$(6,675)$(341,366)
Other comprehensive income (loss) before reclassifications25,007 61 (1,367)23,701 
Amounts reclassified from accumulated other comprehensive income 192  192 
Net current-period other comprehensive income (loss)25,007 253 (1,367)23,893 
Balance - March 31, 2023$(303,733)$(5,698)$(8,042)$(317,473)
Balance - December 31, 2023$(280,082)$(11,891)$(16,761)$(308,734)
Other comprehensive (loss) income before reclassifications(41,875)80 2,908 (38,887)
Amounts reclassified from accumulated other comprehensive income 203  203 
Net current-period other comprehensive (loss) income(41,875)283 2,908 (38,684)
Balance - March 31, 2024$(321,957)$(11,608)$(13,853)$(347,418)
15

Reclassifications Out of Accumulated Other Comprehensive (Loss) Income:
Details about Accumulated Other
Comprehensive Income Components
Amount Reclassified from Accumulated Other Comprehensive IncomeAffected Line in the Statement
Where Net Income is Presented
Three Months Ended March 31,20242023
Defined Benefit Pension Plans
Amortization of net loss$259 $228 (1)
Amortization of prior service cost28 43 (1)
287 271 Total before tax
(84)(79)Tax impact
$203 $192 Net of tax
Total reclassifications for the period$203 $192 
______________________________________________
(1)These accumulated other comprehensive income components are included in the computation of total net periodic benefit costs, net of tax. See Note 8 – Retirement and Deferred Compensation Plans for additional details.
NOTE 10 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES
We maintain a foreign exchange risk management policy designed to establish a framework to protect the value of our non-functional currency denominated transactions from adverse changes in exchange rates. Sales of our products can be denominated in a currency different from the currency in which the related costs to produce the product are denominated. Changes in exchange rates on such inter-country sales or intercompany loans can impact our results of operations. Our policy is not to engage in speculative foreign currency hedging activities, but to minimize our net foreign currency transaction exposure, defined as firm commitments and transactions recorded and denominated in currencies other than the functional currency. We may use foreign currency forward exchange contracts, options and cross currency swaps to economically hedge these risks.
For derivative instruments designated as hedges, we formally document the nature and relationships between the hedging instruments and the hedged items, as well as the risk management objectives, strategies for undertaking the various hedge transactions, and the method of assessing hedge effectiveness at inception. Quarterly thereafter, we formally assess whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in the fair value or cash flows of the hedged item. Additionally, in order to designate any derivative instrument as a hedge of an anticipated transaction, the significant characteristics and expected terms of any anticipated transaction must be specifically identified, and it must be probable that the anticipated transaction will occur. All derivative financial instruments used as hedges are recorded at fair value in the Condensed Consolidated Balance Sheets (See Note 11 - Fair Value).
Cash Flow Hedge
For derivative instruments that are designated and qualify as cash flow hedges, the changes in fair values are recorded in accumulated other comprehensive loss and included in changes in derivative gain/loss. The changes in the fair values of derivatives designated as cash flow hedges are reclassified from accumulated other comprehensive loss to net income when the underlying hedged item is recognized in earnings. Cash flows from the settlement of derivative contracts designated as cash flow hedges offset cash flows from the underlying hedged items and are included in operating activities in the Condensed Consolidated Statements of Cash Flows.
Net Investment Hedge
A significant number of our operations are located outside of the United States. Because of this, movements in exchange rates may have a significant impact on the translation of the financial condition and results of operations of our foreign subsidiaries. A weakening U.S. dollar has an additive effect on our financial condition and results of operations. Conversely, a strengthening U.S. dollar relative to foreign currencies has a dilutive translation effect. In some cases we maintain debt in these subsidiaries to offset the net asset exposure. In the event we plan on a full or partial liquidation of any of our foreign subsidiaries where our net investment is likely to be monetized, we will consider hedging the currency exposure associated with such a transaction.
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On July 6, 2022, we entered into a seven year USD/EUR fixed-to-fixed cross currency interest rate swap to effectively hedge the interest rate exposure relating to $203 million of the $400 million 3.60% Senior Notes due March 2032, which were issued by AptarGroup, Inc. on March 7, 2022. This USD/EUR swap agreement exchanged $203 million of fixed-rate 3.60% USD debt to €200 million of fixed-rate 2.5224% euro debt. We pay semi-annual fixed rate interest payments on the euro notional amount of €2.5 million and receive semi-annual fixed rate interest payments on the USD notional amount of $3.7 million. This swap has been designated as a net investment hedge to effectively hedge the foreign exchange risk associated with €200 million of our euro denominated net assets. We elected the spot method for recording the net investment hedge. Gains and losses resulting from the settlement of the excluded components are recorded in interest expense in the Condensed Consolidated Statements of Income. Gains and losses resulting from the fair value adjustments to the cross currency swap agreements are recorded in accumulated other comprehensive (loss) income as the swaps are effective in hedging the designated risk. As of March 31, 2024, the fair value of the cross currency swap was a $18.3 million liability. The swap agreement will mature on September 15, 2029.
Other
As of March 31, 2024, we have recorded the fair value of foreign currency forward exchange contracts of $0.3 million in prepaid and other and $0.4 million in accounts payable, accrued and other liabilities on the Condensed Consolidated Balance Sheets. All forward exchange contracts outstanding as of March 31, 2024 had an aggregate notional contract amount of $68.8 million.
Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023
March 31, 2024December 31, 2023
Balance Sheet
Location
Derivatives Designated as Hedging InstrumentsDerivatives not Designated as Hedging InstrumentsDerivatives Designated as Hedging InstrumentsDerivatives not Designated as Hedging Instruments
Derivative Assets
Foreign Exchange ContractsPrepaid and other$ $306 $ $386 
$ $306 $ $386 
Derivative Liabilities
Foreign Exchange ContractsAccounts payable, accrued and other liabilities$ $438 $ $221 
Cross Currency Swap Contract (1)Accounts payable, accrued and other liabilities18,347  22,199  
$18,347 $438 $22,199 $221 
__________________________
(1)This cross currency swap agreement is composed of both an interest component and a foreign exchange component.
The Effect of Derivatives Designated as Hedging Instruments on Accumulated Other Comprehensive Income (Loss) for the Three Months Ended March 31, 2024 and 2023
Derivatives Designated as Hedging InstrumentsAmount of Gain
Recognized in
Other Comprehensive
Income on Derivative
Location of Gain Recognized
in Income on
Derivatives
Amount of Gain
Reclassified from
Accumulated
Other Comprehensive
Income on Derivative
Total Amount of Affected Income Statement Line Item
2024202320242023
Cross currency swap agreement:
Interest component$ $ Interest expense$ $ $(10,175)
Foreign exchange component2,908 (1,367)Miscellaneous, net  (859)
$2,908 $(1,367)$ $ 
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The Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statements of Income for the Three Months Ended March 31, 2024 and 2023
Derivatives Not Designated
as Hedging Instruments
Location of Loss Recognized
in Income on Derivatives
Amount of Loss
Recognized in Income
on Derivatives
20242023
Foreign Exchange ContractsOther (Expense) Income:
Miscellaneous, net
$(297)$(860)
$(297)$(860)
Gross Amounts Offset in the Statement of Financial PositionNet Amounts Presented in the Statement of Financial PositionGross Amounts not Offset in the Statement of Financial Position
Gross AmountFinancial InstrumentsCash Collateral ReceivedNet Amount
March 31, 2024
Derivative Assets$306  $306   $306 
Total Assets$306  $306   $306 
Derivative Liabilities$18,785  $18,785   $18,785 
Total Liabilities$18,785  $18,785   $18,785 
December 31, 2023
Derivative Assets$386  $386   $386 
Total Assets$386  $386   $386 
Derivative Liabilities$22,420  $22,420   $22,420 
Total Liabilities$22,420  $22,420   $22,420 

NOTE 11 – FAIR VALUE
Authoritative guidelines require the categorization of assets and liabilities into three levels based upon the assumptions (inputs) used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3 generally requires significant management judgment. The three levels are defined as follows:
Level 1: Unadjusted quoted prices in active markets for identical assets and liabilities.
Level 2: Observable inputs other than those included in Level 1. For example, quoted prices for similar assets or liabilities in active markets or quoted prices for identical assets or liabilities in inactive markets.
Level 3: Unobservable inputs reflecting management’s own assumptions about the inputs used in pricing the asset or liability.
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As of March 31, 2024, the fair values of our financial assets and liabilities were categorized as follows:
TotalLevel 1Level 2Level 3
Assets
Investment in equity securities (1)
$1,698 $1,698 $ $ 
Foreign exchange contracts (2)
306  306  
Convertible notes5,650   5,650 
Total assets at fair value$7,654 $1,698 $306 $5,650 
Liabilities
Foreign exchange contracts (2)
$438 $ $438 $ 
Cross currency swap contract (2)
18,347  18,347  
Total liabilities at fair value$18,785 $ $18,785 $ 
As of December 31, 2023, the fair values of our financial assets and liabilities were categorized as follows:
TotalLevel 1Level 2Level 3
Assets
Investment in equity securities (1)
$1,106 $1,106 $ $ 
Foreign exchange contracts (2)
386  386  
Convertible note5,650   5,650 
Total assets at fair value$7,142 $1,106 $386 $5,650 
Liabilities
Foreign exchange contracts (2)
$221 $ $221 $ 
Cross currency swap contract (2)
22,199  22,199  
Total liabilities at fair value$22,420 $ $22,420 $ 
________________________________________________
(1)Investment in PureCycle Technologies ("PCT" or "PureCycle"). See Note 18 – Investment in Equity Securities for discussion of this investment.
(2)Market approach valuation technique based on observable market transactions of spot and forward rates.
The carrying amounts of our other current financial instruments such as cash and equivalents, accounts and notes receivable, notes payable and current maturities of long-term obligations approximate fair value due to the short-term maturity of the instrument. We consider our long-term debt obligations a Level 2 liability and utilize the market approach valuation technique based on interest rates that are currently available to us for issuance of debt with similar terms and maturities. The estimated fair value of our long-term obligations was $621.2 million as of March 31, 2024 and $620.7 million as of December 31, 2023.
NOTE 12 – COMMITMENTS AND CONTINGENCIES
In the normal course of business, we are subject to a number of lawsuits and claims both actual and potential in nature. While management believes the resolution of these claims and lawsuits will not have a material adverse effect on our financial position, results of operations or cash flows, claims and legal proceedings are subject to inherent uncertainties, and unfavorable outcomes could occur that could include amounts in excess of any accruals which management has established. Were such unfavorable final outcomes to occur, it is possible that they could have a material adverse effect on our financial position, results of operations and cash flows.
Under our Certificate of Incorporation, we have agreed to indemnify our officers and directors for certain events or occurrences while the officer or director is, or was, serving at our request in such capacity. The maximum potential amount of future payments we could be required to make under these indemnification agreements is unlimited; however, we have a directors and officers liability insurance policy that covers a portion of our exposure. As a result of our insurance policy coverage, we believe the estimated fair value of these indemnification agreements is minimal. We have no liabilities recorded for these agreements as of March 31, 2024 and December 31, 2023.
We are periodically subject to loss contingencies resulting from custom duties assessments. We accrue for anticipated costs when an assessment has indicated that a loss is probable and can be reasonably estimated. We have received claims worth approximately $13 million in principal and $5 million to $6 million for interest and penalties. We are currently defending our position with respect to these claims in the respected administrative procedures. Due to uncertainty in the amount of the assessment and the timing of our appeal, no liability is recorded as of March 31, 2024.
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We will continue to evaluate these liabilities periodically based on available information, including the progress of remedial investigations, the status of discussions with regulatory authorities regarding the methods and extent of remediation and the apportionment of costs and penalties among potentially responsible parties.
NOTE 13 – STOCK REPURCHASE PROGRAM
On April 18, 2019, we announced a share repurchase authorization of up to $350 million of common stock. This authorization replaces previous authorizations and has no expiration date. We may repurchase shares through the open market, privately negotiated transactions or other programs, subject to market conditions.
During the three months ended March 31, 2024 and March 31, 2023, we repurchased approximately 86 thousand shares for $12.1 million and 171 thousand shares for $19.7 million, respectively. As of March 31, 2024, there was $48.6 million of authorized share repurchases remaining under the existing authorization.
NOTE 14 – STOCK-BASED COMPENSATION
We issue restricted stock units (“RSUs”), which consist of time-based and performance-based awards, to employees under stock awards plans approved by stockholders. In addition, RSUs are issued to non-employee directors under a Restricted Stock Unit Award Agreement for Directors pursuant to the Company’s 2018 Equity Incentive Plan. RSUs granted to employees vest according to a specified performance period and/or vesting period. Time-based RSUs generally vest over three years. Performance-based RSUs vest at the end of the specified performance period, generally three years, assuming required performance or market vesting conditions are met.
For awards granted in the first quarter of 2023 and thereafter, our performance-based RSUs will vest solely based on our return on invested capital ("ROIC"). Award share payouts depend on the extent to which the ROIC performance goal has been achieved, but the final payout is adjusted by a total shareholder return ("TSR") modifier.
At the time of vesting, the vested shares of common stock are issued in the employee’s name. In addition, RSU awards are generally net settled (shares are withheld to cover the employee tax obligation). RSUs granted to directors are only time-based and generally vest on or around the first anniversary of the date of grant.
The fair value of both time-based RSUs and performance-based RSUs pertaining to internal performance metrics is determined using the closing price of our common stock on the grant date. The fair value of performance-based RSUs pertaining to TSR is estimated using a Monte Carlo simulation. Inputs and assumptions used to calculate the fair value are shown in the table below. The fair value of these RSUs is expensed over the vesting period using the straight-line method or using the graded vesting method when an employee becomes eligible to retain the award at retirement.
Three Months Ended March 31,20242023
Fair value per stock award$145.79 $116.17 
Grant date stock price$141.00 $111.38 
Assumptions:
Aptar's stock price expected volatility18.80 %20.00 %
Expected average volatility of peer companies34.80 %39.70 %
Correlation assumption30.70 %33.30 %
Risk-free interest rate4.51 %3.83 %
Dividend yield assumption1.16 %1.36 %
A summary of RSU activity as of March 31, 2024 and changes during the three month period then ended is presented below:
Time-Based RSUsPerformance-Based RSUs
UnitsWeighted Average
Grant-Date Fair Value
UnitsWeighted Average
Grant-Date Fair Value
Nonvested at January 1, 2024335,874 $115.15 514,383 $130.10 
Granted101,067 135.60 129,540 145.79 
Vested(144,668)122.38 (642)130.10 
Forfeited(1,466)116.94 (2,294)133.41 
Nonvested at March 31, 2024290,807 $118.43 640,987 $