10-Q

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

AptarGroup, Inc.

Delaware	36-3853103
(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 class	Trading symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	ATR	New 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

Part I.	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Condensed Consolidated Statements of Income – Three Months Ended March 31, 2024 and 2023	1
	Condensed Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2024 and 2023	2
	Condensed Consolidated Balance Sheets – March 31, 2024 and December 31, 2023	3
	Condensed Consolidated Statements of Changes in Equity – Three Months Ended March 31, 2024 and 2023	5
	Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2024 and 2023	6
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	39
Item 4.	Controls and Procedures	39
Part II.	OTHER INFORMATION
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 5.	Other Information	40
Item 6.	Exhibits	41
	Signature	42

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,	2024		2023
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 administrative	152,780		147,923
Depreciation and amortization	64,349		59,259
Restructuring initiatives	3,480		11,524
Total Operating Expenses	803,365		776,128
Operating Income	112,083		83,939
Other (Expense) Income:
Interest expense	(10,175)		(10,228)
Interest income	2,898		672
Net investment gain	592		188
Equity in results of affiliates	(221)		(131)
Miscellaneous expense, net	(859)		(1,171)
Total Other Expense	(7,765)		(10,670)
Income before Income Taxes	104,318		73,269
Provision for Income Taxes	21,385		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:
Basic	66,064		65,372
Diluted	67,432		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,	2024		2023
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 tax	2,908		(1,367)
Defined benefit pension plan, net of tax
Actuarial gain, net of tax	80		61
Amortization of prior service cost included in net income, net of tax	20		32
Amortization of net loss included in net income, net of tax	183		160
Total defined benefit pension plan, net of tax	283		253
Total other comprehensive (loss) income	(38,911)		24,510
Comprehensive Income	44,022		79,096
Comprehensive Loss (Income) Attributable to Noncontrolling Interests	400		(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, 2024		December 31, 2023
Assets
Cash and equivalents	$	199,834	$	223,643
Short-term investments	1,223		—
Accounts and notes receivable, less current expected credit loss ("CECL") of $15,512 in 2024 and $16,217 in 2023	724,015		677,822
Inventories	496,840		513,053
Prepaid and other	138,097		134,761
Total Current Assets	1,560,009		1,549,279
Land	29,542		30,090
Buildings and improvements	751,174		748,897
Machinery and equipment	3,172,554		3,183,097
Property, Plant and Equipment, Gross	3,953,270		3,962,084
Less: Accumulated depreciation	(2,488,874)		(2,484,021)
Property, Plant and Equipment, Net	1,464,396		1,478,063
Investments in equity securities	48,911		49,203
Goodwill	953,255		963,418
Intangible assets, net	269,425		283,211
Operating lease right-of-use assets	59,211		59,074
Miscellaneous	81,879		69,642
Total Other Assets	1,412,681		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, 2024		December 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 costs	271,317		376,426
Accounts payable, accrued and other liabilities	760,779		793,089
Total Current Liabilities	1,196,138		1,251,309
Long-Term Obligations, net of unamortized debt issuance costs	680,358		681,188
Deferred income taxes	17,007		19,016
Retirement and deferred compensation plans	64,156		62,795
Operating lease liabilities	43,599		45,267
Deferred and other non-current liabilities	72,895		71,017
Commitments and contingencies	—		—
Total Deferred Liabilities and Other	197,657		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 value	1,075,329		1,044,429
Retained earnings	2,165,858		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’ Equity	2,348,859		2,306,824
Noncontrolling interests in subsidiaries	14,074		14,474
Total Stockholders’ Equity	2,362,933		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 Ended	AptarGroup, Inc. Stockholders’ Equity
March 31, 2024 and 2023	Retained 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 adjustments	2		(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,	2024		2023
Cash Flows from Operating Activities:
Net income	$	82,933	$	54,586
Adjustments to reconcile net income to net cash provided by operations:
Depreciation	53,026		48,297
Amortization	11,323		10,962
Stock-based compensation	18,276		15,042
(Release) Provision for CECL	(568)		2,203
Loss (gain) on disposition of fixed assets	120		(302)
Net gain on remeasurement of equity securities	(592)		(188)
Deferred income taxes	(7,958)		(5,483)
Defined benefit plan expense	3,724		3,537
Equity in results of affiliates	221		131
Changes in balance sheet items, excluding effects from foreign currency adjustments:
Accounts and other receivables	(56,527)		(7,845)
Inventories	7,266		(17,415)
Prepaid and other current assets	(2,720)		(20,578)
Accounts payable, accrued and other liabilities	4,712		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 Operations	92,333		98,304
Cash Flows from Investing Activities:
Capital expenditures	(75,661)		(77,825)
Proceeds from sale of property, plant and equipment	175		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 overdrafts	13,504		16,086
Repayments of notes payable and overdrafts	—		(7,473)
Proceeds and (repayments) of short term revolving credit facility, net	68,838		—
Proceeds from long-term obligations	26		210
Repayments of long-term obligations	(101,320)		(2,888)
Dividends paid	(27,064)		(24,848)
Proceeds from stock option exercises	22,340		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 Period	223,643		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,	2024		2023
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
Segment	Europe		Domestic		Latin America		Asia		Total
Aptar Pharma	$	212,175	$	125,810	$	12,622	$	56,686	$	407,293
Aptar Beauty	206,190		63,277		38,187		19,666		327,320
Aptar Closures	56,027		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
Segment	Europe		Domestic		Latin America		Asia		Total
Aptar Pharma	$	192,120	$	115,312	$	8,197	$	40,417	$	356,046
Aptar Beauty	209,352		58,988		36,565		21,484		326,389
Aptar Closures	57,327		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, 2023		Balance as of March 31, 2024		Increase/ (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 process	182,190		176,191
Finished goods	176,554		191,064
Total	$	496,840	$	513,053

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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 Closures		Total
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, 2024						December 31, 2023
Weighted Average Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization		Net Value		Gross Carrying Amount		Accumulated Amortization		Net Value
Amortized intangible assets:
Patents	9.9	$	7,239	$	(1,882)	$	5,357	$	7,362	$	(1,754)	$	5,608
Acquired technology	11.2	140,840		(72,926)		67,914		142,837		(70,520)		72,317
Customer relationships	13.5	306,749		(129,631)		177,118		308,889		(124,648)		184,241
Trademarks and trade names	7.9	43,519		(34,532)		8,987		43,932		(33,368)		10,564
License agreements and other	32.3	16,935		(6,886)		10,049		17,213		(6,732)		10,481
Total intangible assets	13.4	$	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)
2025	39,865
2026	37,545
2027	30,284
2028	21,166
Thereafter	109,278

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.

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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, 2024		December 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 Liabilities	26,115		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

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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 Two	131,503
Year Three	130,561
Year Four	74
Year Five	59
Thereafter	399,242

Covenants

Our revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including:

	Requirement	Level 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,	2024		2023
Operating lease cost	$	4,881	$	5,414
Finance lease cost:
Amortization of right-of-use assets	$	1,670	$	911
Interest on lease liabilities	296		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,	2024		2023
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 leases	126		301
Financing cash flows from finance leases	1,199		830
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,397	$	4,844
Finance leases	191		200

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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 Plans				Foreign Plans
Three Months Ended March 31,	2024		2023		2024		2023
Service cost	$	2,365	$	2,409	$	1,630	$	1,470
Interest cost	2,232		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 Currency		Defined Benefit Pension Plans		Derivatives		Total
Balance - December 31, 2022	$	(328,740)	$	(5,951)	$	(6,675)	$	(341,366)
Other comprehensive income (loss) before reclassifications	25,007		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)

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Reclassifications Out of Accumulated Other Comprehensive (Loss) Income:

Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line in the Statement Where Net Income is Presented
Three Months Ended March 31,	2024		2023
Defined Benefit Pension Plans
Amortization of net loss	$	259	$	228	(1)
Amortization of prior service cost	28		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, 2024				December 31, 2023
	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments
Derivative Assets
Foreign Exchange Contracts	Prepaid and other	$	—	$	306	$	—	$	386
		$	—	$	306	$	—	$	386
Derivative Liabilities
Foreign Exchange Contracts	Accounts payable, accrued and other liabilities	$	—	$	438	$	—	$	221
Cross Currency Swap Contract (1)	Accounts payable, accrued and other liabilities	18,347		—		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 Instruments	Amount 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
	2024		2023			2024		2023
Cross currency swap agreement:
Interest component	$	—	$	—	Interest expense	$	—	$	—	$	(10,175)
Foreign exchange component	2,908		(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
		2024		2023
Foreign Exchange Contracts	Other (Expense) Income: Miscellaneous, net	$	(297)	$	(860)
		$	(297)	$	(860)

			Gross Amounts Offset in the Statement of Financial Position	Net Amounts Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position
	Gross Amount					Financial Instruments	Cash Collateral Received	Net 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:

	Total		Level 1		Level 2		Level 3
Assets
Investment in equity securities (1)	$	1,698	$	1,698	$	—	$	—
Foreign exchange contracts (2)	306		—		306		—
Convertible notes	5,650		—		—		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:

	Total		Level 1		Level 2		Level 3
Assets
Investment in equity securities (1)	$	1,106	$	1,106	$	—	$	—
Foreign exchange contracts (2)	386		—		386		—
Convertible note	5,650		—		—		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,	2024			2023
Fair value per stock award	$	145.79		$	116.17
Grant date stock price	$	141.00		$	111.38
Assumptions:
Aptar's stock price expected volatility	18.80		%	20.00		%
Expected average volatility of peer companies	34.80		%	39.70		%
Correlation assumption	30.70		%	33.30		%
Risk-free interest rate	4.51		%	3.83		%
Dividend yield assumption	1.16		%	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 RSUs			Performance-Based RSUs
	Units	Weighted Average Grant-Date Fair Value		Units	Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2024	335,874	$	115.15	514,383	$	130.10
Granted	101,067	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, 2024	290,807	$	118.43	640,987	$	133.26

20

Three Months Ended March 31,	2024		2023
Compensation expense	$	13,985	$	12,071
Fair value of units vested	16,319		14,587
Intrinsic value of units vested	20,246		17,046

The actual tax benefit realized for the tax deduction from RSUs was approximately $4.9 million and $2.5 million in the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was $60.4 million of total unrecognized compensation cost relating to RSU awards which is expected to be recognized over a weighted-average period of 2.1 years.

Historically we issued stock options to our employees and non-employee directors. We did not issue stock options between 2019 and 2022. Stock options were reinstituted in 2023 with the exercise price equal to the market price on the date of grant based on the Black-Scholes model and generally vest ratably over three years and expire 10 years after grant.

The Company uses historical data to estimate expected life and volatility. The weighted-average fair value of stock options granted under the stock awards plans were $36.07 per share for all employees, during the first three months of 2024. The weighted-average fair value of stock options granted under the stock awards plans were $19.84 and $24.23 per share for executive officers and all other employees, respectively, during the first three months of 2023. Aptar executive officers received stock options with an exercise price that was 110% of the closing market price on the date of grant. These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

Stock Award Plans:
Three Months Ended March 31,	2024		2023
Dividend Yield	1.28	%	1.41	%
Expected Stock Price Volatility	17.03	%	16.55	%
Risk-free Interest Rate	4.51	%	3.57	%
Expected Life of Option (years)	7.0		7.0

 A summary of option activity under our stock plans during the three months ended March 31, 2024 is presented below:

	Stock Awards Plans				Director Stock Option Plans
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding, January 1, 2024	2,182,784		$	80.63	19,000		$	66.59
Granted	249,663		141.00		—		—
Exercised	(299,595)		70.69		(19,000)		66.59
Forfeited or expired	(4,716)		90.72		—		—
Outstanding at March 31, 2024	2,128,136		$	89.09	—		$	—
Exercisable at March 31, 2024	1,671,615		$	77.98	—		$	—
Weighted-Average Remaining Contractual Term (Years):
Outstanding at March 31, 2024	4.3				0.0
Exercisable at March 31, 2024	2.9				0.0
Aggregate Intrinsic Value:
Outstanding at March 31, 2024	$	116,617			$	—
Exercisable at March 31, 2024	$	110,182			$	—
Intrinsic Value of Options Exercised During the Three Months Ended:
March 31, 2024	$	19,529			$	1,394
March 31, 2023	$	10,118			$	218

21

Three Months Ended March 31,	2024		2023
Compensation expense (included in SG&A)	$	3,852	$	2,734
Compensation expense (included in Cost of sales)	439		237
Compensation expense, Total	$	4,291	$	2,971
Compensation expense, net of tax	3,744		2,971
Grant date fair value of options vested	2,299		—

The increase in stock option expense is due to the newly issued options as discussed above. Cash received from option exercises for the three months ended March 31, 2024 and 2023 was approximately $22.3 million and $13.8 million, respectively. The actual tax benefit realized for the tax deduction from option exercises was approximately $3.7 million and $2.5 million in the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was $7.3 million of total unrecognized compensation cost relating to stock option awards which is expected to be recognized over a weighted-average period of 2.3 years.

NOTE 15 – EARNINGS PER SHARE

Basic net income per share is calculated by dividing net income attributable to Aptar by the weighted-average number of common shares outstanding during the period. Diluted net income per share is calculated by dividing the net income attributable to Aptar by the weighted-average number of common and common equivalent shares outstanding during the applicable period. The difference between basic and diluted earnings per share is attributable to stock-based compensation awards. Stock-based compensation awards for which total employee proceeds exceed the average market price over the applicable period would have an antidilutive effect on earnings per share, and accordingly, are excluded from the calculation of diluted earnings per share. The reconciliation of basic and diluted earnings per share for the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended
	March 31, 2024				March 31, 2023
	Diluted		Basic		Diluted		Basic
Consolidated operations
Income available to common stockholders	$	83,104	$	83,104	$	54,764	$	54,764
Average equivalent shares
Shares of common stock	66,064		66,064		65,372		65,372
Effect of dilutive stock-based compensation
Stock options	788		—		906		—
Restricted stock	580		—		457		—
Total average equivalent shares	67,432		66,064		66,735		65,372
Net income per share	$	1.23	$	1.26	$	0.82	$	0.84

NOTE 16 – SEGMENT INFORMATION

We are organized into three reporting segments. Operations that sell proprietary dispensing systems, drug delivery systems, sealing solutions and services to the prescription drug, consumer health care, injectables, active material science solutions and digital health markets form our Aptar Pharma segment. Operations that sell dispensing systems and sealing solutions to the beauty, personal care and home care markets form our Aptar Beauty segment. Operations that sell dispensing systems, sealing solutions and food service trays to the food, beverage, personal care, home care, beauty and healthcare markets form our Aptar Closures segment. Aptar Pharma and Aptar Beauty are named for the markets they serve with multiple product platforms, while Aptar Closures is named primarily for a single product platform that serves all available markets.

The accounting policies of the segments are the same as those described in Part II, Item 8, Note 1 - Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 31, 2023. We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.

22

Financial information regarding our reporting segments is shown below:

Three Months Ended March 31,	2024		2023
Total Sales:
Aptar Pharma	$	407,490	$	356,111
Aptar Beauty	334,880		333,338
Aptar Closures	182,697		180,439
Total Sales	$	925,067	$	869,888
Less: Intersegment Sales:
Aptar Pharma	$	197	$	65
Aptar Beauty	7,560		6,949
Aptar Closures	1,862		2,807
Total Intersegment Sales	$	9,619	$	9,821
Net Sales:
Aptar Pharma	$	407,293	$	356,046
Aptar Beauty	327,320		326,389
Aptar Closures	180,835		177,632
Net Sales	$	915,448	$	860,067
Adjusted EBITDA (1):
Aptar Pharma	$	132,178	$	109,298
Aptar Beauty	41,134		37,205
Aptar Closures	27,161		26,008
Corporate & Other, unallocated	(21,641)		(18,836)
Acquisition-related costs (2)	—		(255)
Restructuring Initiatives (3)	(3,480)		(11,524)
Net unrealized investment gain (4)	592		188
Depreciation and amortization	(64,349)		(59,259)
Interest Expense	(10,175)		(10,228)
Interest Income	2,898		672
Income before Income Taxes	$	104,318	$	73,269

________________________________________________

(1)We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.

(2)Acquisition-related costs include transaction costs (and purchase accounting adjustments related to acquisitions and investments) (see Note 17 – Acquisitions for further details).

23

(3)Restructuring Initiatives includes expense items for the three months ended March 31, 2024 and 2023 as follows (see Note 19 – Restructuring Initiatives for further details):

Three Months Ended March 31,	2024		2023
Restructuring Initiatives by Plan:
Optimization initiative	$	3,497	$	11,540
Prior year initiatives	(17)		(16)
Total Restructuring Initiatives	$	3,480	$	11,524
Restructuring Initiatives by Segment:
Aptar Pharma	$	24	$	1,131
Aptar Beauty	2,710		9,291
Aptar Closures	760		522
Corporate & Other	(14)		580
Total Restructuring Initiatives	$	3,480	$	11,524

(4)Net unrealized investment gain (loss) represents the change in fair value of our investment in PCT (see Note 18 – Investment in Equity Securities for further details).

NOTE 17 – ACQUISITIONS

Business Combinations

On March 1, 2023, we completed the acquisition of all the outstanding capital stock of iD SCENT. Located in Lyon, France, iD SCENT is an expert producer of paper fragrance sampling solutions that present multiple sustainability features. The purchase price was approximately $9.4 million (net of $1.4 million cash acquired) and was funded with cash on hand. The results of iD SCENT have been included in the consolidated financial statements within our Aptar Beauty segment since the date of acquisition.

Also on March 1, 2023, we completed the acquisition of 80% of the equity interest of Gulf Closures W.L.L. ( "Gulf Closures"). Gulf Closures, located in Bahrain, is a closure manufacturer for beverage products. The purchase price for 80% ownership was approximately $1.5 million (net of $1.2 million cash acquired) and was funded with cash on hand. This values the full company equity at approximately $3.3 million and implies a non-controlling interest valued at approximately $0.7 million as of the acquisition date. The results of Gulf Closures have been included in the consolidated financial statements within our Aptar Closures segment since the date of acquisition.

NOTE 18 – INVESTMENT IN EQUITY SECURITIES

Our investment in equity securities consisted of the following:

	March 31, 2024		December 31, 2023
Equity Method Investments:
BTY	$	32,429	$	33,090
Sonmol	4,650		4,751
Desotec GmbH	901		905
Other Investments:
PureCycle	1,698		1,106
YAT	5,262		5,352
Loop	2,894		2,894
Others	1,077		1,105
	$	48,911	$	49,203

24

Equity Method Investments

Jinyu

On December 10, 2023, we entered into a Share Purchase Agreement to acquire 40% of the equity interests in Ningbo Jinyu Technology Industry Co., Ltd. (referred to as "Jinyu"), a leading manufacturer of dispensing technologies in China for approximately $84 million subject to final closing conditions. This transaction is expected to close in 2024, subject to satisfaction and completion of various closing conditions.

BTY

On January 1, 2020, we acquired 49% of the equity interests in three related companies: Suzhou Hsing Kwang, Suqian Hsing Kwang and Suzhou BTY (collectively referred to as “BTY”) for an approximate purchase price of $32.0 million. We have a call option to acquire an additional 26% to 31% of BTY’s equity interests following the initial lock-up period of 5 years based on a predetermined formula. Subsequent to the second lock-up period, which ends 3 years after the initial lock-up period, we have a call option to acquire the remaining equity interests of BTY based on a predetermined formula. Additionally, the selling shareholders of BTY have a put option for the remaining equity interest to be acquired by Aptar based on a predetermined formula. The BTY entities are leading Chinese manufacturers of high quality, decorative metal components, metal-plastic sub-assemblies, and complete color cosmetics packaging solutions for the beauty industry. For the three months ended March 31, 2024 and March 31, 2023, Aptar had purchases of $2.3 million and $3.5 million, respectively, from BTY. As of March 31, 2024 and December 31, 2023, approximately $1.7 million and $1.8 million, respectively, was due to BTY and included in accounts payable, accrued and other liabilities on our Condensed Consolidated Balance Sheets.

Sonmol

On April 1, 2020, we invested $5.0 million to acquire 30% of the equity interests in Healthcare, Inc., Shanghai Sonmol Internet Technology Co., Ltd. and its subsidiary, Shanghai Sonmol Medical Equipment Co., Ltd. (collectively referred to as “Sonmol”). Sonmol is a leading Chinese pharmaceutical company that provides consumer electric devices and connected devices for asthma control.

Desotec GmbH

During 2009, we invested €574 thousand to acquire 23% of the equity interests in Desotec GmbH, a leading manufacturer of special assembly machines for bulk processing for the pharmaceutical, beauty and closures markets.

Other Investments

In prior years, we invested, through a series of transactions, an aggregate amount of $2.9 million in preferred equity investments in Loop, a sustainability company.

In prior years, we also invested, through a series of transactions, $3.0 million in PureCycle and received $0.7 million of equity in exchange for our resource dedication for technological partnership and support. In November 2020, we increased the value of the PureCycle investment by $3.1 million based on observable price changes. In March 2021, PureCycle was purchased by a special purpose acquisition company and was subsequently listed on Nasdaq under the ticker PCT. At that time, our investment in PureCycle was converted into shares of PCT resulting in less than a 1% ownership interest. This investment is now recorded at fair value based on observable market prices for identical assets and the change in fair value is recorded as a net investment gain or loss in the Condensed Consolidated Statements of Income.

We have sold the following PCT shares related to the PureCycle investment:

	Shares Sold	Proceeds		Realized Gain
July 2023	248,859	$	2,659	$	1,968
August 2023	261,590	$	2,945	$	2,220

For the three months ended March 31, 2024 and 2023, we recorded the following net investment gain on our investment in PureCycle:

Three Months Ended March 31,	2024		2023
Net investment gain	$	592	$	188

On July 7, 2021, we invested approximately $5.9 million to acquire 10% of the equity interests in YAT, a multi-functional, science-driven online skincare solutions company.

There were no indications of impairment noted in the three months ended March 31, 2024 and 2023 related to these investments.

25

NOTE 19 – RESTRUCTURING INITIATIVES

During the third quarter of 2022, we began an initiative to better leverage our fixed cost base through growth and cost reduction measures. For the three months ended March 31, 2024 and 2023, we recognized $3.5 million and $11.5 million of restructuring costs related to this initiative, respectively. The cumulative expense incurred as of March 31, 2024 was $55.2 million.

As of March 31, 2024, we have recorded the following activity associated with our optimization initiative:

	Beginning Reserve at 12/31/2023		Net Charges for the Three Months Ended 3/31/2024		Cash Paid		Interest and FX Impact		Ending Reserve at 3/31/2024
Employee severance	$	27,078	$	1,743	$	(4,453)	$	151	$	24,519
Professional fees and other costs	2,810		1,754		(1,101)		(14)		3,449
Totals	$	29,888	$	3,497	$	(5,554)	$	137	$	27,968

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ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

(AMOUNTS IN THOUSANDS, EXCEPT PER SHARE AMOUNTS, OR AS OTHERWISE INDICATED)

RESULTS OF OPERATIONS

Three Months Ended March 31,	2024		2023
Net sales	100.0	%	100.0	%
Cost of sales (exclusive of depreciation and amortization shown below)	63.7		64.8
Selling, research & development and administrative	16.7		17.2
Depreciation and amortization	7.0		6.9
Restructuring initiatives	0.4		1.3
Operating income	12.2		9.8
Interest expense	(1.1)		(1.2)
Other expense	0.3		(0.1)
Income before income taxes	11.4		8.5
Net Income	9.1		6.3
Effective tax rate	20.5	%	25.5	%
Adjusted EBITDA margin (1)	19.5	%	17.9	%

________________________________________________

(1)Adjusted EBITDA margin is calculated as Adjusted EBITDA divided by Reported Net Sales. See the reconciliation under "Non-U.S. GAAP Measures."

NET SALES

Reported net sales for the first three months of 2024 increased 6% to $915.4 million compared to $860.1 million for the first three months of 2023. The average U.S. dollar exchange rate weakened compared to the euro and other major currencies in which we operate, resulting in a favorable currency translation impact of 1%. Our acquisitions of iD SCENT and Gulf Closures did not impact our consolidated results during the first three months of 2024. Therefore, core sales, which exclude acquisitions and changes in foreign currency rates, increased by 5% in the first three months of 2024 compared to the same period in 2023. Our 5% core sales increase was mainly due to improved volumes and product mix of approximately 6% while price adjustments represented a 1% decrease. All three segments contributed to the volume and mix growth during the first quarter of 2024, with our Aptar Pharma segment providing the majority of the increase.

Three Months Ended March 31, 2024 Net Sales Change over Prior Year	Aptar Pharma		Aptar Beauty		Aptar Closures		Total
Reported Net Sales Growth	14	%	—	%	2	%	6	%
Currency Effects (1)	(1)	%	(1)	%	—	%	(1)	%
Acquisitions	—	%	—	%	(1)	%	—	%
Core Sales Growth	13	%	(1)	%	1	%	5	%

________________________________________________

(1)Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.

The following table sets forth, for the periods indicated, net sales by geographic location based on shipped to locations:

Three Months Ended March 31,	2024		% of Total		2023		% of Total
Domestic	$	277,903	30	%	$	259,068	30	%
Europe	474,392		52	%	458,799		53	%
Latin America	72,082		8	%	65,128		8	%
Asia	91,071		10	%	77,072		9	%

For further discussion on net sales by reporting segment, please refer to the analysis of segment net sales and segment Adjusted EBITDA on the following pages.

COST OF SALES (EXCLUSIVE OF DEPRECIATION AND AMORTIZATION SHOWN BELOW)

For the first three months of 2024, cost of sales as a percent of net sales decreased to 63.7% compared to 64.8% in the same period in 2023. This decrease is mainly due to an improved mix of our higher-margin Pharma products along with improved operational performance and cost management initiatives which reduced our overall expense. During the prior year, we also incurred additional expenses related to our injectables Enterprise Resource Planning ("ERP") system implementation which did not repeat during 2024.

SELLING, RESEARCH & DEVELOPMENT AND ADMINISTRATIVE

Our selling, research & development and administrative expenses ("SG&A") increased by $4.9 million to $152.8 million in the first three months of 2024 compared to $147.9 million during the same period in 2023. Excluding changes in foreign currency rates, SG&A increased by approximately $4.0 million in the first three months of 2024 compared to the first three months of 2023. Incremental costs related to our acquisitions of iD SCENT and Gulf Closures were $0.4 million. Improvements from our cost management initiatives for the first three months of 2024 were more than offset by higher compensation costs, including accruals related to our current short-term incentive compensation arrangements and the timing of certain equity compensation programs expense recognition. SG&A as a percentage of net sales decreased to 16.7% in the first three months of 2024 compared to 17.2% in the same period in 2023.

DEPRECIATION AND AMORTIZATION

Depreciation and amortization expenses increased by approximately $5.1 million to $64.3 million in the first three months of 2024 compared to $59.3 million during the same period a year ago. Excluding changes in foreign currency rates, depreciation and amortization increased by approximately $4.7 million in the first three months of 2024 compared to the same period a year ago. Incremental depreciation and amortization costs related to our acquisitions of iD SCENT and Gulf Closures were $0.3 million. This increase is due to higher internal capital investments made during the current and prior years. Depreciation and amortization as a percentage of net sales increased to 7.0% in the first three months of 2024 compared to 6.9% in the same period of the prior year.

RESTRUCTURING INITIATIVES

During the third quarter of 2022, we began an initiative to better leverage our fixed cost base through growth and cost reduction measures. For the three months ended March 31, 2024 and 2023, we recognized $3.5 million and $11.5 million of restructuring costs related to this initiative, respectively. The cumulative expense incurred as of March 31, 2024 was $55.2 million.

Restructuring costs for the three months ended March 31, 2024 and 2023 were as follows:

Three Months Ended March 31,	2024		2023
Restructuring Initiatives by Plan:
Optimization initiative	$	3,497	$	11,540
Prior year initiatives	(17)		(16)
Total Restructuring Initiatives	$	3,480	$	11,524
Restructuring Initiatives by Segment:
Aptar Pharma	$	24	$	1,131
Aptar Beauty	2,710		9,291
Aptar Closures	760		522
Corporate & Other	(14)		580
Total Restructuring Initiatives	$	3,480	$	11,524

OPERATING INCOME

For the first three months of 2024, operating income increased approximately $28.1 million to $112.1 million compared to $83.9 million in the same period of the prior year. Excluding changes in foreign currency rates, operating income increased by approximately $26.7 million in the first three months of 2024 compared to the same period a year ago as our strong Pharma segment growth and the lower restructuring initiative expenses mentioned above was partially offset by higher SG&A and depreciation and amortization costs. Operating income as a percentage of net sales increased to 12.2% in the first three months of 2024 compared to 9.8% for the same period in the prior year.

28

INTEREST EXPENSE

Interest expense decreased $0.1 million to $10.2 million in the first three months of 2024 compared to the same period in 2023. This reduction is mainly due to the repayment of part of our outstanding debt using cash generated from operations over the past year. See Note 6 - Debt to the Condensed Consolidated Financial Statements for further details.

NET OTHER INCOME (EXPENSE)

Net other income increased $2.9 million to $2.4 million of income for the three months ended March 31, 2024 from $0.4 million of expense in the same period of the prior year. Interest income increased by approximately $2.2 million due to cash flow generated from operations over the past year. The remaining increase is mainly due to a $0.4 million increase in the fair value of our PureCycle investment during the first quarter of 2024 compared to the prior year period. This investment is recorded at fair value based on observable market prices for identical assets with the change in fair value being recorded as a net investment gain or loss in the Condensed Consolidated Statements of Income.

PROVISION FOR INCOME TAXES

The tax provision for interim periods is determined using the estimated annual effective consolidated tax rate, based on the current estimate of full-year earnings and related estimated full-year taxes, adjusted for the impact of discrete quarterly items. The effective tax rate for the three months ended March 31, 2024 and 2023, respectively, was 20.5% and 25.5%. The lower reported 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.

NET INCOME ATTRIBUTABLE TO APTARGROUP, INC.

We reported net income attributable to AptarGroup, Inc. of $83.1 million and $54.8 million in the three months ended March 31, 2024 and 2023, respectively.

APTAR PHARMA SEGMENT

Operations that sell proprietary dispensing systems, drug delivery systems, sealing solutions and services to the prescription drug, consumer health care, injectables, active material science solutions and digital health markets form our Aptar Pharma segment.

Three Months Ended March 31,	2024			2023
Net Sales	$	407,293		$	356,046
Adjusted EBITDA (1)	132,178			109,298
Adjusted EBITDA margin (1)	32.5		%	30.7		%

________________________________________________

(1)Adjusted EBITDA is calculated as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items. Adjusted EBITDA margins are calculated as Adjusted EBITDA divided by Reported Net Sales. See the reconciliation under "Non-U.S. GAAP Measures."

Net sales for the first three months of 2024 increased by 14% to $407.3 million compared to $356.0 million in the first three months of 2023. Changes in currency rates positively impacted net sales by 1% during the first three months of 2024. Therefore, core sales increased by 13% in the first three months of 2024 compared to the same period in the prior year. Core sales to the prescription drug market increased 10% on continued strong demand for our allergic rhinitis, asthma, pain and emergency medicine systems. The 2% core sales growth in the consumer health care market was driven by higher demand for our nasal decongestant and saline rinse solutions. Core sales of our products to the injectables market improved by 54% primarily due to the prior year shutdown of operations for the implementation of our new ERP system. We also realized an increase in demand for our biologic and small molecule products which offsets the lower demand for our vaccine applications. Core sales of our active material science solutions increased 2% mainly on strong growth in our probiotics and oral solid dose applications. Digital health currently does not represent a significant percentage of the total Pharma sales.

29

Three Months Ended March 31, 2024 Net Sales Change over Prior Year	Prescription Drug		Consumer Health Care		Injectables		Active Material Science Solutions		Digital Health		Total
Reported Net Sales Growth	11	%	4	%	55	%	2	%	110	%	14	%
Currency Effects (1)	(1)	%	(2)	%	(1)	%	—	%	(2)	%	(1)	%
Core Sales Growth	10	%	2	%	54	%	2	%	108	%	13	%

_______________________________________

(1)Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.

Adjusted EBITDA in the first three months of 2024 increased 21% to $132.2 million compared to $109.3 million in the same period of the prior year. This positive impact is mainly due to the strong core sales growth across all divisions as discussed above. During the prior year, we also incurred additional expenses related to our injectables ERP system implementation which did not repeat. Overall, our Adjusted EBITDA margin improved to 32.5% in the first three months of 2024 compared to 30.7% in the first three months of 2023.

APTAR BEAUTY SEGMENT

Operations that sell dispensing systems and sealing solutions to the beauty, personal care and home care markets form our Aptar Beauty segment.

Three Months Ended March 31,	2024			2023
Net Sales	$	327,320		$	326,389
Adjusted EBITDA (1)	41,134			37,205
Adjusted EBITDA margin (1)	12.6		%	11.4		%

________________________________________________

(1)Adjusted EBITDA is calculated as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items. Adjusted EBITDA margins are calculated as Adjusted EBITDA divided by Reported Net Sales. See the reconciliation under "Non-U.S. GAAP Measures."

For the first three months of 2024, reported net sales of $327.3 million were slightly higher than the $326.4 million reported in the first three months of the prior year. Changes in currency rates positively impacted net sales by approximately 1% while our acquisition of iD SCENT did not have an impact on segment sales. Therefore, core sales decreased 1% in the first three months of 2024 compared to the same period in the prior year. While sales improved in North America, we realized softening demand in our other regions largely attributable to exceptionally strong demand in the prior year period, which sets a challenging benchmark for comparison. Core sales of our products to the beauty market during the first three months of 2024 were consistent with the first quarter of the prior year as higher sales of our facial skin care applications, especially in North America, more than compensated for softness in demand for our color cosmetic products. Sales of our products to the fragrance market also improved slightly over the prior year as we continued to see increasing demand in Europe and Latin America. Personal care core sales decreased 4% primarily due to lower sales of our sun care and personal cleansing applications. Core sales of our home care market products improved 2% on higher demand from our customers selling air care and automotive products.

Three Months Ended March 31, 2024 Net Sales Change over Prior Year	Personal Care		Beauty		Home Care		Total
Reported Net Sales Growth	(3)	%	1	%	3	%	—	%
Currency Effects (1)	(1)	%	(1)	%	(1)	%	(1)	%
Acquisitions	—	%	—	%	—	%	—	%
Core Sales Growth	(4)	%	—	%	2	%	(1)	%

________________________________________________

(1)Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.

Adjusted EBITDA in the first three months of 2024 increased 11% to $41.1 million compared to $37.2 million reported in the same period in the prior year. This increase is mainly due to improved operational performance along with benefits realized from our cost management initiatives . Therefore, our Adjusted EBITDA margin improved from 11.4% in the first three months of 2023 to 12.6% during the first three months of 2024.

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APTAR CLOSURES SEGMENT

Operations that sell dispensing systems, sealing solutions and food service trays to the food, beverage, personal care, home care, beauty and healthcare markets form our Aptar Closures segment. Aptar's food protection business and elastomeric flow-control technology business continue to report through the Aptar Closures segment.

Three Months Ended March 31,	2024			2023
Net Sales	$	180,835		$	177,632
Adjusted EBITDA (1)	27,161			26,008
Adjusted EBITDA margin (1)	15.0		%	14.6		%

________________________________________________

(1)Adjusted EBITDA is calculated as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items. Adjusted EBITDA margins are calculated as Adjusted EBITDA divided by Reported Net Sales. See the reconciliation under "Non-U.S. GAAP Measures."

Net sales for the first three months of 2024 increased by 2% to $180.8 million compared to $177.6 million in the first three months of 2023. Changes in currency rates had no impact on net sales while our acquisition of Gulf Closures positively impacted net sales by 1%. Therefore, core sales increased by 1% in the first three months of 2024 compared to the same period in the prior year. Core sales to the food and personal care markets increased 3% and 2%, respectively, while core sales to the beverage market decreased 4% in the first three months of 2024 compared to the same period of the prior year. For the food market, we realized strong growth in our dry spices and food protection applications. The personal care market benefited from improving demand for our body and hair care products, mainly in North America. The beverage market experienced softness due to the timing of some of our customer's transition to our new tethered cap closures in compliance with European Union regulations.

Three Months Ended March 31, 2024 Net Sales Change over Prior Year	Food		Beverage		Personal Care		Other (2)		Total
Reported Net Sales Growth	3	%	1	%	2	%	(6)	%	2	%
Currency Effects (1)	—	%	(1)	%	—	%	1	%	—	%
Acquisitions	—	%	(4)	%	—	%	—	%	(1)	%
Core Sales Growth	3	%	(4)	%	2	%	(5)	%	1	%

______________________________________________________________

(1)Currency effects are calculated by translating last year’s amounts at this year’s foreign exchange rates.

(2)Other includes beauty, home care and healthcare markets.

Adjusted EBITDA in the first three months of 2024 increased 4% to $27.2 million compared to $26.0 million reported in the same period of the prior year. Our profitability was positively impacted by a continued focus on operational improvements and containing costs. This led to our Adjusted EBITDA margin improving from 14.6% in the first three months of 2023 to 15.0% during the first three months of 2024.

CORPORATE & OTHER

In addition to our three reporting segments, we assign certain costs to “Corporate & Other,” which is presented separately in Note 16 – Segment Information of the Notes to the Condensed Consolidated Financial Statements. For Corporate & Other, Adjusted EBITDA (which excludes net interest, taxes, depreciation, amortization, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items) primarily includes certain professional fees, compensation and information system costs which are not allocated directly to our reporting segments.

Corporate & Other Adjusted EBITDA in the first three months of 2024 increased to $21.6 million of expense compared to $18.8 million of expense reported in the same period of the prior year. This increase is mainly related to higher incentive compensation costs, including accruals related to our current short-term incentive compensation program and the timing of equity compensation expense recognition including substantive vesting conditions for retirement eligible employees.

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NON-U.S. GAAP MEASURES

In addition to the information presented herein that conforms to U.S. GAAP, we also present financial information that does not conform to U.S. GAAP, which are referred to as non-U.S. GAAP financial measures. Management may assess our financial results both on a U.S. GAAP basis and on a non-U.S. GAAP basis. We believe it is useful to present these non-U.S. GAAP financial measures because they allow for a better period over period comparison of operating results by removing the impact of items that, in management’s view, do not reflect our core operating performance. These non-U.S. GAAP financial measures should not be considered in isolation or as a substitute for U.S. GAAP financial results, but should be read in conjunction with the unaudited Condensed Consolidated Statements of Income and other information presented herein. Investors are cautioned against placing undue reliance on these non-U.S. GAAP measures. Further, investors are urged to review and consider carefully the adjustments made by management to the most directly comparable U.S. GAAP financial measures to arrive at these non-U.S. GAAP financial measures.

In our Management’s Discussion and Analysis, we exclude the impact of foreign currency translation when presenting net sales and other information, which we define as “constant currency.” Core sales, which excludes the impact of foreign currency translation is a non-U.S. GAAP financial measure. As a worldwide business, it is important that we take into account the effects of foreign currency translation when we view our results and plan our strategies. Consequently, when our management looks at our financial results to measure the core performance of our business, we may exclude the impact of foreign currency translation by translating our prior period results at current period foreign currency exchange rates. As a result, our management believes that these presentations are useful internally and may be useful to investors. We also exclude the impact of material acquisitions when comparing results to prior periods. Changes in operating results excluding the impact of acquisitions are non-U.S. GAAP financial measures. We believe it is important to exclude the impact of acquisitions on period over period results in order to evaluate performance on a more comparable basis.

We present earnings before net interest and taxes (“EBIT”) and earnings before net interest, taxes, depreciation and amortization (“EBITDA”). We also present our adjusted earnings before net interest and taxes (“Adjusted EBIT”) and adjusted earnings before net interest, taxes, depreciation and amortization (“Adjusted EBITDA”), both of which exclude restructuring initiatives, acquisition-related costs, purchase accounting adjustments related to acquisitions and investments and net unrealized investment gains and losses related to observable market price changes on equity securities. Our Outlook is also provided on a non-U.S. GAAP basis because certain reconciling items are dependent on future events that either cannot be controlled, such as exchange rates and changes in the fair value of equity investments, or reliably predicted because they are not part of our routine activities, such as restructuring initiatives and acquisition-related costs.

We provide a reconciliation of Net Debt to Net Capital as a non-U.S. GAAP measure. “Net Debt” is calculated as interest-bearing debt less cash and equivalents and short-term investments while “Net Capital” is calculated as stockholders’ equity plus Net Debt. Net Debt to Net Capital measures a company’s financial leverage, which gives users an idea of a company's financial structure, or how it is financing its operations, along with insight into its financial strength. We believe that it is meaningful to take into consideration the balance of our cash, cash equivalents and short-term investments when evaluating our leverage. If needed, such assets could be used to reduce our gross debt position.

Finally, we provide a reconciliation of free cash flow as a non-U.S. GAAP measure. Free cash flow is calculated as cash provided by operating activities less capital expenditures plus proceeds from government grants related to capital expenditures. We use free cash flow to measure cash flow generated by operations that is available for dividends, share repurchases, acquisitions and debt repayment. We believe that it is meaningful to investors in evaluating our financial performance and measuring our ability to generate cash internally to fund our initiatives.

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	Three Months Ended
	March 31, 2024
	Consolidated			Aptar Pharma			Aptar Beauty			Aptar Closures			Corporate & Other		Net Interest
Net Sales	$	915,448		$	407,293		$	327,320		$	180,835		$	—	$	—
Reported net income	$	82,933
Reported income taxes	21,385
Reported income before income taxes	104,318			103,352			17,196			12,870			(21,823)		(7,277)
Adjustments:
Restructuring initiatives	3,480			24			2,710			760			(14)
Net investment gain	(592)												(592)
Adjusted earnings before income taxes	107,206			103,376			19,906			13,630			(22,429)		(7,277)
Interest expense	10,175														10,175
Interest income	(2,898)														(2,898)
Adjusted earnings before net interest and taxes (Adjusted EBIT)	114,483			103,376			19,906			13,630			(22,429)		—
Depreciation and amortization	64,349			28,802			21,228			13,531			788
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	178,832		$	132,178		$	41,134		$	27,161		$	(21,641)	$	—
Reported net income margin (Reported net income / Reported Net Sales)	9.1		%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)	19.5		%	32.5		%	12.6		%	15.0		%

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	Three Months Ended
	March 31, 2023
	Consolidated			Aptar Pharma			Aptar Beauty			Aptar Closures			Corporate & Other		Net Interest
Net Sales	$	860,067		$	356,046		$	326,389		$	177,632		$	—	$	—
Reported net income	$	54,586
Reported income taxes	18,683
Reported income before income taxes	73,269			82,390			7,432			13,295			(20,292)		(9,556)
Adjustments:
Restructuring initiatives	11,524			1,131			9,291			522			580
Net investment gain	(188)												(188)
Transaction costs related to acquisitions	255			—			199			56			—
Adjusted earnings before income taxes	84,860			83,521			16,922			13,873			(19,900)		(9,556)
Interest expense	10,228														10,228
Interest income	(672)														(672)
Adjusted earnings before net interest and taxes (Adjusted EBIT)	94,416			83,521			16,922			13,873			(19,900)		—
Depreciation and amortization	59,259			25,777			20,283			12,135			1,064
Adjusted earnings before net interest, taxes, depreciation and amortization (Adjusted EBITDA)	$	153,675		$	109,298		$	37,205		$	26,008		$	(18,836)	$	—
Reported net income margin (Reported net income / Reported Net Sales)	6.3		%
Adjusted EBITDA margins (Adjusted EBITDA / Reported Net Sales)	17.9		%	30.7		%	11.4		%	14.6		%

Net Debt to Net Capital Reconciliation	March 31,			December 31,
	2024			2023
Notes payable, revolving credit facility and overdrafts	$	164,042		$	81,794
Current maturities of long-term obligations, net of unamortized debt issuance costs	271,317			376,426
Long-Term Obligations, net of unamortized debt issuance costs	680,358			681,188
Total Debt	1,115,717			1,139,408
Less:
Cash and equivalents	199,834			223,643
Net Debt	$	914,660		$	915,765
Total Stockholders' Equity	$	2,362,933		$	2,321,298
Net Debt	914,660			915,765
Net Capital	$	3,277,593		$	3,237,063
Net Debt to Net Capital	27.9		%	28.3		%

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Free Cash Flow Reconciliation	March 31,		March 31,
	2024		2023
Net Cash Provided by Operations	$	92,333	$	98,304
Capital Expenditures	(75,661)		(77,825)
Free Cash Flow	$	16,672	$	20,479

FOREIGN CURRENCY

Because of our international presence, movements in exchange rates may have a significant impact on the translation of the financial statements of our foreign subsidiaries. Our primary foreign exchange exposure is to the euro, but we also have foreign exchange exposure to the Chinese yuan, Brazilian real, Mexican peso, Swiss franc and other Asian, European and South American currencies. A weakening U.S. dollar has an additive effect. Conversely, a strengthening U.S. dollar relative to foreign currencies has a dilutive translation effect on our financial statements. In some cases, we sell products denominated in a currency different from the currency in which the related costs are incurred. Any changes in exchange rates on such inter-country sales could materially impact our results of operations. During the first quarter of 2024, the U.S. dollar weakened compared to all European currencies except the Russian ruble and most Latin American currencies, while it showed strength against most Asian currencies. This resulted in an additive impact on our translated results during the first quarter of 2024 when compared to the first quarter of 2023.

QUARTERLY TRENDS

Our results of operations in the last quarter of the year typically are negatively impacted by customer plant shutdowns in December. Several of the markets we serve are impacted by the seasonality of underlying consumer products. This, in turn, may have an impact on our net sales and results of operations for those markets. The diversification of our product portfolio minimizes fluctuations in our overall quarterly financial statements and results in an immaterial seasonality impact on our Condensed Consolidated Financial Statements when viewed quarter over quarter.

Generally, we have incurred higher stock-based compensation expense in the first quarter compared with the rest of the fiscal year due to the timing and recognition of stock-based expense from substantive vesting for retirement eligible employees. As of March 31, 2024, our estimated stock option expense on a pre-tax basis for the year 2024 compared to 2023 is as follows:

	2024		2023
First Quarter	$	18,276	$	15,042
Second Quarter (estimated for 2024)	10,304		10,391
Third Quarter (estimated for 2024)	9,152		10,051
Fourth Quarter (estimated for 2024)	8,939		5,809
	$	46,671	$	41,293

LIQUIDITY AND CAPITAL RESOURCES

Given our current level of leverage and our ability to generate cash flow from operations, we believe we are in a strong financial position to meet our business requirements in the foreseeable future. We have historically used cash flow from operations, our revolving and other credit facilities, proceeds from stock options and debt, as needed, as our primary sources of liquidity. Our primary uses of cash are to invest in equipment and working capital for the continued growth of our business, including facilities that are necessary to support our growth, pay quarterly dividends to stockholders, to make acquisitions and repurchase shares of our common stock that will contribute to the achievement of our strategic objectives. Due to uncertain macroeconomic conditions, including rising interest rates and the inflationary environment, in the event that customer demand decreases significantly for a prolonged period of time and adversely impacts our cash flows from operations, we would have the ability to restrict and significantly reduce capital expenditure levels and share repurchases, as well as reevaluate our acquisition strategy. A prolonged and significant reduction in capital expenditure levels could increase future repairs and maintenance costs as well as have a negative impact on operating margins if we were unable to invest in new innovative products.

Cash and equivalents and restricted cash decreased to $199.8 million at March 31, 2024 from $223.6 million at December 31, 2023. Total short and long-term interest-bearing debt of $1.1 billion at March 31, 2024 was consistent with the $1.1 billion at December 31, 2023. The ratio of our Net Debt (interest-bearing debt less cash and cash equivalents) to Net Capital (stockholders’ equity plus Net Debt) decreased to 27.9% at March 31, 2024 from 28.3% at December 31, 2023. See the reconciliation under "Non-U.S. GAAP Measures."

In the first three months of 2024, our operations provided approximately $92.3 million in net cash flow compared to $98.3 million for the same period a year ago. In both periods, cash flow from operations was primarily derived from earnings before depreciation and amortization.

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We used $76.6 million in cash for investing activities during the first three months of 2024 compared to $89.2 million during the same period a year ago. Our investment in capital projects net of government grant proceeds decreased $2.2 million during the first three months of 2024 compared to the first three months of 2023.

Financing activities used $35.8 million in cash during the first three months of 2024 compared to $24.8 million in cash used by financing activities during the same period a year ago. During the first three months of 2024, we paid $27.1 million of dividends, received $22.3 million from stock option exercises and purchased $12.1 million of treasury stock.

In October 2020, we entered into an unsecured money market borrowing arrangement to provide short term financing of up to $30 million that is available in the U.S. No borrowing on this facility is permitted over a quarter end date. As such, no balance was utilized under this arrangement as of March 31, 2024.

Aptar has a 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. Credit facility balances are included in notes payable, revolving credit facility and overdrafts on the Condensed Consolidated Balance Sheets.

Our revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including:

	Requirement	Level 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 private placement agreements.

Based upon the above consolidated leverage ratio covenant, we would have the ability to borrow approximately an additional $1.4 billion before the 3.50 to 1.00 maximum ratio requirement would be exceeded.

On July 6, 2022, we entered into an agreement to swap approximately $200 million of our fixed USD debt to fixed EUR debt which would generate interest savings of approximately $0.5 million per quarter based upon exchange rates as of the transaction date.

On April 11, 2024, the Board of Directors declared a quarterly cash dividend of $0.41 per share payable on May 16, 2024 to stockholders of record as of April 25, 2024.

Our foreign operations have historically met cash requirements with the use of internally generated cash or uncommitted short-term borrowings. We also have committed financing arrangements in both the U.S. and the UK as detailed above. We manage our global cash requirements considering (i) available funds among the many subsidiaries through which we conduct business, (ii) the geographic location of our liquidity needs, and (iii) the cost to access international cash balances.

CONTINGENCIES

The Company, in the normal course of business, is subject to a number of lawsuits and claims both actual and potential in nature. Please refer to Note 12 - Commitments and Contingencies of the Notes to Condensed Consolidated Financial Statements for a discussion of contingencies affecting our business.

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RECENTLY ISSUED ACCOUNTING STANDARDS

We have reviewed the recently issued ASUs to the FASB’s Accounting Standards Codification that have future effective dates. Standards that have been adopted during 2024 are discussed in Note 1 – Summary of Significant Accounting Policies of the Notes to Condensed Consolidated Financial Statements.

Other accounting standards that have been issued by the FASB or other standards-setting bodies that do not require adoption until a future date are not expected to have a material impact on our Condensed Consolidated Financial Statements upon adoption.

OUTLOOK

In the second quarter, we anticipate demand for our proprietary drug delivery systems and elastomeric components for biologics to continue to grow, and we expect Pharma’s strong performance to continue throughout the year. We also expect demand to build for our consumer dispensing technologies in the second quarter as the destocking abates in North America. Additionally, both Beauty and Closures will continue to focus on improving operational performance and ongoing cost management, including optimizing our footprint. We are energized for 2024, which will be another dynamic year for us, as we continue to focus on accelerating growth and improving profitability.

We expect earnings per share for the second quarter of 2024, excluding any restructuring expenses, changes in the fair value of equity investments and acquisition costs, to be in the range of $1.30 to $1.38 and this guidance is based on an effective tax rate range of 22% to 24%. Our 2024 estimated cash outlays for capital expenditures net of government grant proceeds are expected to be approximately $280 million to $300 million.

FORWARD-LOOKING STATEMENTS

Certain statements in Management’s Discussion and Analysis and other sections of this Form 10-Q are forward-looking and involve a number of risks and uncertainties, including certain statements set forth in the Significant Developments, Restructuring Initiatives, Quarterly Trends, Liquidity and Capital Resources, Contingencies and Outlook sections of this Form 10-Q. Words such as “expects,” “anticipates,” “believes,” “estimates,” “future,” “potential”, "are optimistic" and other similar expressions or future or conditional verbs such as “will,” “should,” “would” and “could” are intended to identify such forward-looking statements. Forward-looking statements are made pursuant to the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are based on our beliefs as well as assumptions made by and information currently available to us. Accordingly, our actual results or other events may differ materially from those expressed or implied in such forward-looking statements due to known or unknown risks and uncertainties that exist in our operations and business environment including, but not limited to:

•geopolitical conflicts worldwide including the invasion of Ukraine by the Russian military and the recent tension in the Middle East and the resulting indirect impact on demand from our customers selling their products into these countries, as well as rising input costs and certain supply chain disruptions;

•lower demand and asset utilization due to an economic recession either globally or in key markets we operate within;

•economic conditions worldwide, including inflationary conditions and potential deflationary conditions in other regions we rely on for growth;

•the execution of our fixed cost reduction initiatives, including our optimization initiative;

•the availability of raw materials and components (particularly from sole sourced suppliers) as well as the financial viability of these suppliers;

•fluctuations in the cost of materials, components, transportation cost as a result of supply chain disruptions and labor shortages, and other input costs (particularly resin, metal, anodization costs and energy costs);

•significant fluctuations in foreign currency exchange rates or our effective tax rate;

•the impact of tax reform legislation, changes in tax rates and other tax-related events or transactions that could impact our effective tax rate;

•financial conditions of customers and suppliers;

•consolidations within our customer or supplier bases;

•changes in customer and/or consumer spending levels;

•loss of one or more key accounts;

•our ability to successfully implement facility expansions and new facility projects;

•our ability to offset inflationary impacts with cost containment, productivity initiatives and price increases;

•changes in capital availability or cost, including rising interest rates;

•volatility of global credit markets;

•our ability to identify potential new acquisitions and to successfully acquire and integrate such operations, including the successful integration of the product/service offerings of the acquired entities into our existing portfolio;

•direct or indirect consequences of acts of war, terrorism or social unrest;

•cybersecurity threats that could impact our networks and reporting systems;

•the impact of natural disasters and other weather-related occurrences;

•fiscal and monetary policies and other regulations;

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•changes, difficulties or failures in complying with government regulation, including FDA or similar foreign governmental authorities;

•changing regulations or market conditions regarding environmental sustainability;

•work stoppages due to labor disputes;

•competition, including technological advances;

•our ability to protect and defend our intellectual property rights, as well as litigation involving intellectual property rights;

•the outcome of any legal proceeding that has been or may be instituted against us and others;

•our ability to meet future cash flow estimates to support our goodwill impairment testing;

•the demand for existing and new products;

•the success of our customers’ products, particularly in the pharmaceutical industry;

•our ability to manage worldwide customer launches of complex technical products, particularly in developing markets;

•difficulties in product development and uncertainties related to the timing or outcome of product development;

•significant product liability claims; and

•other risks associated with our operations.

Although we believe that our forward-looking statements are based on reasonable assumptions, there can be no assurance that actual results, performance or achievements will not differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements. Readers are cautioned not to place undue reliance on forward-looking statements. We undertake no obligation to update publicly any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Please refer to Item 1A (Risk Factors) of Part I included in our Annual Report on Form 10-K for the year ended December 31, 2023 for additional risks and uncertainties that may cause our actual results or other events to differ materially from those expressed or implied in such forward-looking statements.

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ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

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 subsidiaries. Our primary foreign exchange exposure is to the euro, but we also have foreign exchange exposure to the Chinese yuan, Brazilian real, Argentine peso, Mexican peso, Swiss franc and other Asian, European and Latin American currencies. A weakening U.S. dollar relative to foreign currencies has an additive translation effect on our financial statements. Conversely, a strengthening U.S. dollar has a dilutive effect. Additionally, in some cases, we sell products denominated in a currency different from the currency in which the related costs are incurred. Any changes in exchange rates on such inter-country sales may impact our results of operations.

The table below provides information as of March 31, 2024 about our forward currency exchange contracts. The majority of the contracts expire before the end of the second quarter of 2024.

Buy/Sell	Contract Amount (in thousands)		Average Contractual Exchange Rate	Min / Max Notional Volumes
EUR / USD	$	26,625	1.0880	19,759 - 26,625
EUR / BRL	10,462		5.4857	10,462 - 10,611
CZK / EUR	10,189		0.0398	6,882 - 10,189
MXN / USD	5,000		0.0580	3,000 - 5,000
EUR / THB	4,662		38.4185	4,662 - 4,806
USD / CNY	3,899		7.1453	3,899 - 6,649
EUR / MXN	2,373		18.6155	1,085 - 2,373
CHF / EUR	1,205		1.0561	1,205 - 4,369
USD / EUR	1,012		0.9189	1,012 - 3,798
THB / EUR	960		0.0264	960 - 989
EUR / GBP	631		0.8573	0 - 631
GBP / EUR	504		1.1650	354 - 582
USD / MXN	500		16.8656	0 - 500
CHF / USD	316		1.1423	0 - 324
EUR / CHF	225		0.9598	0 - 225
EUR / CZK	174		25.2453	0 - 174
GBP / USD	86		1.2624	0 - 86
Total	$	68,823

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. 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% EUR debt. The fair value of this net investment hedge is $18.3 million reported in accounts payable, accrued and other liabilities on the Condensed Consolidated Balance Sheets.

ITEM 4. CONTROLS AND PROCEDURES

DISCLOSURE CONTROLS AND PROCEDURES

Management has evaluated, with the participation of the chief executive officer and chief financial officer of the Company, the effectiveness of our disclosure controls and procedures (as that term is defined in Rule 13a-15(e) under the Securities Exchange Act of 1934) as of March 31, 2024. Based on that evaluation, the chief executive officer and chief financial officer have concluded that these controls and procedures were effective as of such date.

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

During the fiscal quarter ended March 31, 2024, we implemented ERP systems at two operating units. Consequently, the control environments have been modified at these locations to incorporate the controls contained within the new ERP systems. Except for the foregoing, no changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Securities Exchange Act of 1934) occurred during our fiscal quarter ended March 31, 2024 that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

39

PART II - OTHER INFORMATION

ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

RECENT SALES OF UNREGISTERED SECURITIES

Certain French employees are eligible to participate in the FCP Aptar Savings Plan (the “Plan”). An independent agent purchases shares of common stock available under the Plan for cash on the open market and we do not issue shares. We do not receive any proceeds from the purchase of common stock under the Plan. The agent under the Plan is BNP Paribas Fund Services. No underwriters are used under the Plan. All shares are sold in reliance upon the exemption from registration under the Securities Act of 1933 provided by Regulation S promulgated under that Act. During the quarter ended March 31, 2024, the Plan purchased 10,820 shares of our common stock on behalf of the participants at an average price of $140.02, for an aggregate amount of $1.5 million, and sold 12,923 shares of our common stock on behalf of the participants at an average price of $137.25, for an aggregate amount of $1.8 million. At March 31, 2024, the Plan owned 111,843 shares of our common stock.

ISSUER PURCHASES OF EQUITY SECURITIES

On April 18, 2019, we announced a share purchase authorization of up to $350 million of common stock. This authorization replaced 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, we repurchased approximately 86 thousand shares for $12.1 million. As of March 31, 2024, there was $48.6 million of authorized share repurchases remaining under the existing authorization.

The following table summarizes our purchases of our securities for the quarter ended March 31, 2024:

Period	Total Number Of Shares Purchased	Average Price Paid Per Share		Total Number Of Shares Purchased As Part Of Publicly Announced Plans Or Programs	Dollar Value Of Shares That May Yet Be Purchased Under The Plans Or Programs (in millions)
1/1 - 1/31/24	—	$	—	—	$	60.7
2/1 - 2/29/24	38,300	139.48		38,300	55.3
3/1 - 3/31/24	47,300	142.35		47,300	48.6
Total	85,600	$	141.07	85,600	$	48.6

ITEM 5. OTHER INFORMATION

Rule 10b5-1 Plan Elections

During the three months ended March 31, 2024, no director or officer of the Company adopted, modified or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.

40

ITEM 6. EXHIBITS

Exhibit 10.1*	Form of Stock Option Agreement for Employees pursuant to AptarGroup, Inc. 2018 Equity Incentive Plan.**
Exhibit 31.1	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 31.2	Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.1	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 32.2	Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
Exhibit 101	The following information from our Quarterly Report on Form 10-Q for the first quarter of fiscal 2024, filed with the SEC on April 26, 2024, formatted in Inline Extensible Business Reporting Language (XBRL): (i) the Cover Page, (ii) the Condensed Consolidated Statements of Income – Three Months Ended March 31, 2024 and 2023, (iii) the Condensed Consolidated Statements of Comprehensive Income – Three Months Ended March 31, 2024 and 2023, (iv) the Condensed Consolidated Balance Sheets – March 31, 2024 and December 31, 2023, (v) the Condensed Consolidated Statements of Changes in Equity – Three Months Ended March 31, 2024 and 2023, (vi) the Condensed Consolidated Statements of Cash Flows - Three Months Ended March 31, 2024 and 2023 and (vii) the Notes to Condensed Consolidated Financial Statements.
Exhibit 104	Cover Page Interactive Data File (embedded within the Inline XBRL document).

*Filed or furnished herewith.

**Management contract or compensatory plan or arrangement.

41

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	AptarGroup, Inc.
	(Registrant)
By	/s/ ROBERT W. KUHN
	Robert W. Kuhn
	Executive Vice President and Chief Financial Officer
	(Duly Authorized Officer and
	Principal Accounting and Financial Officer)
	Date: April 26, 2024

42

EX-10.1

Exhibit 10.1

APTARGROUP, INC.

2018 EQUITY INCENTIVE PLAN

STOCK OPTION AGREEMENT
FOR EMPLOYEES

AptarGroup, Inc., a Delaware corporation (the “Company”), hereby grants to the participant (the “Employee”) as of [____________ __], 202__ (the “Option Date”), pursuant to the provisions of the AptarGroup, Inc. 2018 Equity Incentive Plan, as amended and restated (the “Plan”), a nonqualified option to purchase from the Company (the “Option”) the number of shares of its Common Stock, $.01 par value, deposited into the Employee’s account as of the Grant Date, at the closing price on the Option Date per share (the “Exercise Price”), upon and subject to the restrictions, terms and conditions set forth below. Capitalized terms not defined herein shall have the meanings specified in the Plan.

1.    Option Subject to Acceptance of Agreement. The Award shall be null and void unless the Employee accepts this Agreement by electronically accepting this Agreement within the Employee’s stock plan account with the Company’s stock plan administrator according to the procedures then in effect.

2.    Time and Manner of Exercise of Option.

2.1.    Maximum Term of Option. In no event may the Option be exercised, in whole or in part, after the ten year anniversary of the Option Date (the “Expiration Date”).

2.2.    Exercise of Option. (a) The Option shall become exercisable (i) in one-third increments on each of the first, second and third year anniversaries of the Option Date or (ii) as otherwise provided pursuant to this Section 2.2 (the “Vesting Period”).

(b)    If the Employee's employment by the Company terminates by reason of Retirement prior to the end of the Vesting Period, the Option shall continue to be exercisable and become exercisable in accordance with the vesting schedule set forth in Section 2.2(a) and may thereafter be exercised by the Employee or the Employee's Legal Representative from the effective date of the Employee's termination of employment until the Expiration Date.

(c)    If the Employee's employment by the Company terminates by reason of Disability or deathprior to the end of the Vesting Period, the Option shall become fully exercisable and may thereafter be exercised by the Employee or the Employee's Legal Representative, in the case of Disability, or the Employee's Legal Representative or Permitted Transferees, in the case of death, in each case, until and including the earlier to occur of (i) the three-year anniversary of the effective date of the Employee's termination of employment and (ii) the Expiration Date.

Exhibit 10.1

(d)    If the Employee’s employment by the Company terminates for any reason other than Retirement, Disability, death or Cause prior to the end of the Vesting Period, the Option shall be exercisable only to the extent that it was exercisable on the effective date of the Employee’s termination of employment and may thereafter be exercised by the Employee or the Employee’s Legal Representative until and including the earlier to occur of (i) the one-year anniversary of the effective date of the Employee’s termination of employment and (ii) the Expiration Date. The portion of the Option, if any, which is not vested as of the effective date of the Employee’s termination of employment shall be forfeited and cancelled by the Company. If the Employee’s termination of employment is due to Cause, then the Option, whether or not vested, shall be forfeited and cancelled by the Company upon such termination of employment.

(e)    If the Employee dies following termination of employment by reason of Retirement and prior to the Expiration Date, the Option shall become fully exercisable and may thereafter be exercised by the Employee’s Legal Representative or Permitted Transferees, as the case may be, until and including the earlier to occur of (i) the one-year anniversary of the date of death and (ii) the Expiration Date. If the Employee dies during the one-year period following termination of employment for any reason other than Retirement or Disability and prior to the Expiration Date, the Option shall be exercisable only to the extent that it was exercisable on the date of such death and may thereafter be exercised by the Employee's Legal Representative or Permitted Transferees, as the case may be, until and including the earlier to occur of (i) the one-year anniversary of the date of death and (ii) the Expiration Date.

(f)    Change in Control.

(1)    Vesting of Award Not Assumed. In the event of a Change in Control prior to the end of the Vesting Period pursuant to which the Option is not effectively assumed or continued by the surviving or acquiring corporation in such Change in Control (as determined by the Board of Directors or the Committee, with appropriate adjustments to the number and kind of shares, in each case, that preserve the intrinsic value and other material terms and conditions of the outstanding Option as in effect immediately prior to the Change in Control and in accordance with Section 409A of the Code), the Option shall be 100% vested immediately prior to such Change in Control and the Employee shall receive in full settlement for such Option a cash payment in an amount equal to the aggregate number of shares of Common Stock then subject to the Option multiplied by the excess, if any, of the Fair Market Value of a share of Common Stock as of the date of the Change in Control, over the Exercise Price.

Exhibit 10.1

(2)    Vesting of Award Assumed. In the event of a Change in Control prior to the end of the Vesting Period pursuant to which the Option is effectively assumed or continued by the surviving or acquiring corporation in such Change in Control (as determined by the Board of Directors or the Committee, with appropriate adjustments to the number and kind of shares, in each case, that preserve the intrinsic value and other material terms and conditions of the outstanding Option as in effect immediately prior to the Change in Control and in accordance with Section 409A of the Code) and the Company terminates Employee’s employment without Cause or Employee resigns for Good Reason within 24 months following such Change in Control, in any such case, the Option shall be 100% vested upon such termination of employment, and the Option may thereafter be exercised by Employee until and including the earlier to occur of (i) the date which is one year after the date of termination of employment and (ii) the Expiration Date.

(g)    Definitions. For purposes of this Agreement, the following terms shall be defined as follows:

    (1)    “Cause” shall mean (i) the commission of a felony involving moral turpitude, (ii) the commission of a fraud, (iii) the commission of any material act involving dishonesty with respect to the Company or any of its subsidiaries or affiliates, (iv) gross negligence or willful misconduct with respect to the Company or any of its subsidiaries or affiliates, (v) the willful and continued failure by the Employee to substantially perform the Employee’s duties with the Company (other than any such failure resulting from the Employee’s incapacity due to physical or mental illness) after a written demand for substantial performance is delivered to the Employee by the Company, which demand specifically identifies the manner in which the Company believes that the Employee has not substantially performed the Employee’s duties, (vi) breach of any restrictive covenant provision or agreement with the Company or (vii) any breach by the Employee of any written agreement with the Company or any of its subsidiaries or affiliates which is material and which is not cured within 30 days following written notice thereof to the Employee by the Company.

    (2)    “Disability” shall mean that the Employee either (i) is unable to engage in any substantial gainful activity by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, or (ii) by reason of any medically determinable physical or mental impairment that can be expected to result in death or can be expected to last for a continuous period of not less than twelve (12) months, is receiving income replacement benefits for a period of not less than six (6) months under an accident and health plan covering employees of the Employee’s employer.

Exhibit 10.1

    (3)    “Good Reason” shall mean, without the written consent of the Employee, any one or more of the following: (i) the Company reduces the amount of the Employee’s (x) base salary or (y) the aggregate cash bonus opportunity and long-term incentive opportunity (it being understood that the Board of Directors or an authorized committee shall have discretion to set the Company’s and the Employee’s personal performance targets to which the cash bonus and long-term incentive opportunities will be tied and to change the form of long-term incentive awards); (ii) the Company adversely changes the Employee’s reporting responsibilities, titles or office as in effect as of the date hereof or reduces his/her position, authority, duties, responsibilities or status, in a manner that is materially inconsistent with the positions, authority, duties, responsibilities or status, which the Employee then holds (for the avoidance of doubt, Employee shall be deemed to have an adverse change in Employee’s position, authorities, duties, responsibilities or status, in the event the Employee ceases to have public company reporting responsibilities as a result of the Company ceasing to be publicly-traded following a Change in Control); (iii) any successor to the Company in any merger, consolidation or transfer of assets, as described in Section 4.2, does not expressly assume any material obligation of the Company to the Employee under any agreement or plan pursuant to which the Employee receives benefits or rights; or (iv) the Company changes the Employee’s place of work to a location more than sixty (60) miles from the Employee’s present place of work; provided, however, that the occurrence of any such condition shall not constitute Good Reason unless (A) the Employee provides written notice to the Company of the existence of such condition not later than 60 days after the Employee knows or reasonably should know of the existence of such condition, (B) the Company shall have failed to remedy such condition within 30 days after receipt of such notice and (C) the Employee resigns due to the existence of such condition within 60 days after the expiration of the remedial period described in clause (B) hereof in which such condition remains unremedied.

(4)    “Retirement” shall mean termination of employment, other than for Cause, either (i) at or after age 55 after a minimum of (a) ten (10) years of employment with the Company, or (b) ten (10) years of employment with the Company after applying five (5) years of credit for previous work experience in accordance with Company policy or (ii) at or after age 65. For purposes of determining whether Employee has satisfied the service requirement for Retirement, employment with an entity or business acquired by the Company shall be deemed to be employment with the Company.

Exhibit 10.1

2.3.    Method of Exercise.

(a)    Subject to the limitations set forth in this Agreement, the Option, to the extent vested, may be exercised by the Employee (i) by delivering to the Company an exercise notice in the form prescribed by the Company specifying the number of whole shares of Common Stock to be purchased and by accompanying such notice with payment therefor in full (or by arranging for such payment to the Company’s satisfaction) either (A) in cash, (B) by delivery to the Company (either actual delivery or by attestation procedures established by the Company) of shares of Common Stock having an aggregate Fair Market Value, determined as of the date of exercise, equal to the aggregate purchase price payable pursuant to the Option by reason of such exercise, (C) by authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered having an aggregate Fair Market Value, determined as of the date of exercise, equal to the amount necessary to satisfy such obligation, (D) except as may be prohibited by applicable law, in cash by a broker-dealer acceptable to the Company to whom the Employee has submitted an irrevocable notice of exercise or (E) by a combination of (A), (B) and (C), and (ii) by executing such documents as the Company may reasonably request. The Committee shall have sole discretion to disapprove of an election pursuant to clauses (B), (C), (D) or (E), except that the Committee may not disapprove of an election made by a participant subject to Section 16 of the Securities Exchange Act of 1934. No share of Common Stock or certificate representing a share of Common Stock shall be issued or delivered until the full purchase price therefor and any withholding taxes thereon, as described in Section 3.2, have been paid.

(b) Notwithstanding the foregoing, if the Market Value of a share of Common Stock on the Expiration Date exceeds the Exercise Price, then to the extent the Option has not theretofore been exercised, expired or otherwise terminated, the Company shall cause the Option to be automatically exercised immediately prior to its termination on the Expiration Date, and to provide for the full Exercise Price therefor to be satisfied by withholding whole shares of Common Stock that would otherwise be delivered to the Employee having an aggregate Market Value, determined as of the date of exercise, equal to the amount necessary to satisfy such Exercise Price and to provide for any withholding taxes thereon (as described in Section 3.2) to be satisfied by selling such number of shares of Common Stock subject to the Option as is necessary to make a cash payment to the Company in an amount equal to any withholding taxes thereon (as described in Section 3.2), such sale to be effected on the Employee's behalf through a broker (and other procedures) designated by the Company (with such broker selecting the trade date and the selling price). Any fraction of a share of Common Stock which would be required to satisfy such an obligation shall be disregarded and the remaining amount due shall be paid in cash by the Employee. This Section 2.3(b) is intended to constitute a written plan pursuant to Rule 10b5-1(c) under the Exchange Act. To the extent applicable, the Employee shall take actions necessary to ensure that any such sales shall comply with Rule 144 under the Securities Act of 1933, as amended.

2.4.    Termination of Option. In no event may the Option be exercised after it terminates as set forth in this Section 2.4. The Option shall terminate, to the extent not exercised pursuant to Section 2.3 or earlier terminated pursuant to Section 2.2, on the Expiration Date.

Exhibit 10.1

2.5    Termination of Option and Forfeiture of Option Gain. (a) If at any time prior to the earliest to occur of (i) the Expiration Date, (ii) the date which is one year after the effective date of the Employee's termination of employment for any reason other than death and (iii) the date which is six months after the Employee exercises any portion of the Option, the Employee:

(1)    directly or indirectly (whether as principal, agent, independent contractor, partner or otherwise) engages in any type of or accepts employment with or renders services to any Competing Entity or takes any action inconsistent with the fiduciary relationship of an employee to the employee's employer; provided, that, following a termination of employment, the Employee may accept employment with a Competing Entity, the businesses of which are diversified, and which with respect to one or more of its businesses considered separately is not a Competing Entity, provided, that the Company, prior to the Employee's accepting such employment, shall receive written assurances satisfactory to the Company from such Competing Entity and from the Employee that the Employee will not render services directly or indirectly in connection with any Competing Product or be employed in a position where the Employee could use or disclose confidential information of the Company or an Affiliate or of any customer or client of the Company or an Affiliate in connection with the Employee's employment responsibilities to the benefit of a Competing Entity; or

(2)    directly or indirectly induces or attempts to induce any employee, agent or customer of the Company or any Affiliate to terminate such employment, agency or business relationship, or take any action or engage in any conduct which would interfere with the employment relationship between the Company and any of its employees; or

(3)    directly or indirectly, for the Employee or any Competing Entity, sells or offers for sale, or assists in any way in the sale of, Competing Products to any customer or client of the Company or any Affiliate, upon which the Employee has called or which the Employee has supervised while an employee of the Company or an Affiliate; or

(4)    directly or indirectly engages in any activity which is contrary, inimical or harmful to the interests of the Company or an Affiliate, including but not limited to (x) violations of Company policies, including the Company's insider trading and confidentiality policies and (y) disclosure or misuse of any confidential information or trade secrets of the Company or an Affiliate,

Exhibit 10.1

then the Option shall terminate automatically on the date the Employee engages in such activity and the Employee shall pay the Company, within five business days of receipt by the Employee of a written demand therefor, an amount in cash determined by multiplying the number of shares of Common Stock purchased pursuant to each exercise of the Option (without reduction for any shares of Common Stock delivered by the Employee or withheld by the Company in satisfaction of the Exercise Price or any tax withholding obligations) by the difference between (A) the Market Value of a share of Common Stock on the date of such exercise and (B) the Exercise Price per share of Common Stock set forth in the first paragraph of this Agreement (the “Proceeds”). For purposes of this Agreement, “Competing Entity” means any business entity, regardless of its form (e.g. corporations, partnerships, sole proprietorships, trusts and joint ventures), which is engaged in, or is about to become engaged in, research or development, production, marketing or selling of any Competing Product anywhere worldwide which the Company or its Affiliates is engaged in business; and “Competing Product” means any product, technology or process of any person or organization other than the Company or its Affiliates, in existence or under development, which is of the same type or intended for the same use as, or which competes or is potentially competitive with, a product, technology or process of the Company or its Affiliates.

(b)    The Employee may be released from the Employee's obligations under Section 2.5(a) only if and to the extent the Committee determines in its sole discretion that such a release is in the best interests of the Company.

(c)    The Employee agrees that by executing this Agreement the Employee authorizes the Company and its Affiliates to deduct any amount or amounts owed by the Employee pursuant to Section 2.5(a) from any amounts payable by the Company or any Affiliate to the Employee, including, without limitation, any amount payable to the Employee as salary, wages, vacation pay or bonus. This right of setoff shall not be an exclusive remedy and the Company's or an Affiliate's election not to exercise this right of setoff with respect to any amount payable to the Employee shall not constitute a waiver of this right of setoff with respect to any other amount payable to the Employee or any other remedy.

Exhibit 10.1

(d)    The Employee acknowledges and agrees that the Company has legitimate business reasons for including each of the restrictive covenants set forth above. For example, Employee recognizes that the Option provides Employee with an ownership interest in the Company and, in turn, gives Employee a long-term stake in the Company. Employee also understands and agrees that the Option provides Employee with an additional incentive to contribute to the Company’s performance, and that the Option serves to keep Employee’s interests aligned with the Company’s. Employee agrees that the Option therefore protects the Company and other employees against competition from former employees who leave the Company, voluntarily engage in competitive employment adverse to the Company’s interests, and yet simultaneously seek to receive stock-related compensation established and funded by the Company for the benefit of personnel whom the Company would reward for loyalty and consequent success of the Company. Further, Employee recognizes and explicitly agrees that the Option is not an unreasonable restraint on Employee’s ability to earn a livelihood and will not impoverish Employee because the Option does not restrict, in any way, Employee’s ability to work elsewhere, including for a competitor. Employee agrees simply to forfeit the restricted stock units to which Employee otherwise would be entitled but for Employee’s violation(s) of the restrictive covenants set forth above or, in certain circumstances as detailed in Section 2.5(a), to repay any Proceeds (as defined in Section 2.5(a)) with respect to the Options in the event of Employee’s violation(s) of the restrictive covenants set forth above. Employee further acknowledges and agrees that Employee’s participation in the Plan and receipt of the Option, subject to the respective conditions in the Plan and this Agreement, are entirely voluntary.

(e)    Non-Contravention. Nothing in this Agreement (including with respect to confidential information, trade secrets, and other obligations) is intended to be or will be construed to prevent, impede, or interfere with Grantee’s right to respond accurately and fully to any question, inquiry, or request for information regarding Grantee’s employment with the Company when required by legal process by a Federal, State or other legal authority, or from initiating communications directly with, or responding to any inquiry from, or providing truthful testimony and information to, any Federal, State, or other regulatory authority in the course of an investigation or proceeding authorized by law and carried out by such agency. Grantee is not required to contact the Company regarding the subject matter of any such communications before Grantee engages in such communications. In addition, nothing in this Agreement is intended to restrict Grantee’s legally protected right to discuss wages, hours or other working conditions with coworkers or in any way limit Grantee’s rights under the National Labor Relations Act or any whistleblower act.

Exhibit 10.1

3.    Additional Terms and Conditions of Option.

3.1.    Nontransferability of Option. The Option may not be transferred by the Employee other than (i) by will or the laws of descent and distribution or pursuant to beneficiary designation procedures approved by the Company or (ii) a transfer without value to a “family member” (as defined in Form S-8) if approved by the Committee. Except to the extent permitted by the foregoing sentence, during the Employee's lifetime the Option is exercisable only by the Employee or the Employee's Legal Representative. Except to the extent permitted by the foregoing, the Option may not be sold, transferred, assigned, pledged, hypothecated, encumbered or otherwise disposed of (whether by operation of law or otherwise) or be subject to execution, attachment or similar process. Upon any attempt to so sell, transfer, assign, pledge, hypothecate, encumber or otherwise dispose of the Option, the Option and all rights hereunder shall immediately become null and void.

3.2.    Withholding Taxes. (a) As a condition precedent to the issuance of Common Stock following the exercise of the Option, the Employee shall, upon request by the Company, pay to the Company in addition to the purchase price of the shares, such amount as the Company determines is required, under all applicable federal, state, local or other laws or regulations, to be withheld and paid over as income or other withholding taxes (the “Required Tax Payments”) with respect to such exercise of the Option. If the Employee shall fail to advance the Required Tax Payments after request by the Company, the Company may, in its discretion, deduct any Required Tax Payments from any amount then or thereafter payable by the Company to the Employee.

Exhibit 10.1

(b)     The Employee may elect to satisfy his or her obligation to advance the Required Tax Payments by any of the following means: (i) a cash payment to the Company; (ii) delivery to the Company (either actual delivery or by attestation procedures established by the Company) of previously owned whole shares of Common Stock having an aggregate Fair Market Value, determined as of the date on which such withholding obligation arises (the “Tax Date”), equal to the Required Tax Payments; (iii) authorizing the Company to withhold whole shares of Common Stock which would otherwise be delivered to the Employee upon exercise of the Option having an aggregate Fair Market Value, determined as of the Tax Date, equal to the Required Tax Payments; (iv) except as may be prohibited by applicable law, a cash payment by a broker-dealer acceptable to the Company to whom the Employee has submitted an irrevocable notice of exercise or (v) any combination of (i), (ii) and (iii); provided, however, that the Committee shall have sole discretion to disapprove of an election pursuant to clauses (ii) through (v), except that the Committee may not disapprove of an election made by a participant subject to Section 16 of the Securities Exchange Act of 1934. Shares of Common Stock to be delivered or withheld may not have a Fair Market Value in excess of the amount determined by applying the maximum individual statutory tax rate in the Employee’s jurisdiction; provided that the Committee shall be permitted to limit the number of shares so delivered or withheld to a lesser number if necessary, as determined by the Committee, to avoid adverse accounting consequences or for administrative convenience; provided, however, that if a fraction of a share of Common Stock would be required to satisfy the maximum individual statutory rate in the Employee’s jurisdiction, then the number of shares of Common Stock to be delivered or withheld may be rounded up to the next nearest whole share of Common Stock. No share of Common Stock or certificate representing a share of Common Stock shall be issued or delivered until the Required Tax Payments have been satisfied in full.

3.3    Adjustment. In the event of any equity restructuring (within the meaning of Financial Accounting Standards Board Accounting Standards Codification Topic 718, Compensation—Stock Compensation) that causes the per share value of shares of Common Stock to change, such as a share dividend, stock split, spinoff, rights offering or recapitalization through an extraordinary cash dividend, the number and class of securities subject to the Option and the Exercise Price shall be appropriately adjusted by the Committee, such adjustments to be made without an increase in the aggregate purchase price or base price and in accordance with Section 409A of the Code. In the event of any other change in corporate capitalization, including a merger, consolidation, reorganization, or partial or complete liquidation of the Company, such equitable adjustments described in the foregoing sentence may be made as determined to be appropriate and equitable by the Committee to prevent dilution or enlargement of rights of participants. In either case, the decision of the Committee regarding any such adjustment shall be final, binding and conclusive.

Exhibit 10.1

3.4.    Compliance with Applicable Law. The Option is subject to the condition that if the listing, registration or qualification of the shares subject to the Option upon any securities exchange or under any law, or the consent or approval of any governmental body, or the taking of any other action is necessary or desirable as a condition of, or in connection with, the purchase or delivery of shares hereunder, the Option may not be exercised, in whole or in part, unless such listing, registration, qualification, consent or approval shall have been effected or obtained. The Company agrees to make every reasonable effort to effect or obtain any such listing, registration, qualification, consent or approval.

3.5.    Issuance of Shares. Upon the exercise of the Option, in whole or in part, the Company shall issue or cause to be issued in the Employee’s name (or such other name as is acceptable to the Company and designated in writing by the Employee) the shares of Common Stock acquired upon exercise.  Such issuance shall be evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company (or, alternatively at the discretion of the Company, a certificate or certificates may be registered in the Employee’s name). The Company shall pay all original issue or transfer taxes and all fees and expenses incident to such delivery, except as otherwise provided in Section 3.2.

3.6.    Option Confers No Rights as Stockholder. The Employee shall not be entitled to any privileges of ownership with respect to shares of Common Stock subject to the Option unless and until purchased and delivered upon the exercise of the Option, in whole or in part, and the Employee becomes a stockholder of record with respect to such delivered shares; and the Employee shall not be considered a stockholder of the Company with respect to any such shares not so purchased and delivered.

3.7.    Option Confers No Rights to Continued Employment. In no event shall the granting of the Option or its acceptance by the Employee give or be deemed to give the Employee any right to continued employment by the Company or any Affiliate of the Company.

3.8.    Decisions of Board or Committee. The Board of Directors or the Committee shall have the right to resolve all questions which may arise in connection with the Option or its exercise. Any interpretation, determination or other action made or taken by the Board of Directors or the Committee regarding the Plan or this Agreement shall be final, binding and conclusive.

3.9.    Company to Reserve Shares. The Company shall at all times prior to the expiration or termination of the Option reserve and keep available, either in its treasury or out of its authorized but unissued shares of Common Stock, the full number of shares subject to the Option from time to time.

3.10.    Agreement Subject to the Plan. This Agreement is subject to the provisions of the Plan (including the adjustment provision set forth in Section 7(b) thereof), and shall be interpreted in accordance therewith. The Employee hereby acknowledges receipt of a copy of the Plan.

Exhibit 10.1

3.11.    Entire Agreement. This Agreement and the Plan constitute the entire agreement of the parties with respect to the subject matter hereof and supersede in their entirety all prior undertakings and agreements of the Company and the Employee with respect to the subject matter hereof, and may not be modified adversely to the Employee’s interest except by means of a writing signed by the Company and the Employee.

3.12.     Partial Invalidity. The invalidity or unenforceability of any particular provision of this Agreement shall not effect the other provisions hereof and this Agreement shall be construed in all respects as if such invalid or unenforceable provisions were omitted.

3.13.    Amendment and Waiver. The provisions of this Agreement may be amended or waived only by the written agreement of the Company and the Employee, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement.

4.    Miscellaneous Provisions.

4.1.    Meaning of Certain Terms. As used herein, (a) employment by the Company shall include employment by an Affiliate of the Company, (b) the term “Permitted Transferee” shall include any transferee (i) pursuant to a transfer permitted under Section 7(a) of the Plan and Section 3.1 hereof or (ii) designated pursuant to Section 7(e) of the Plan on the Employee’s most recent and validly submitted AptarGroup, Inc. Acceptance and Beneficiary Designation Form, and (c) the term “Legal Representative” shall include a guardian, administrator, executor or other person acting in a similar capacity.

4.2.    Successors. This Agreement shall be binding upon and inure to the benefit of any successor or successors of the Company and any person or persons who shall, upon the death of the Employee, acquire any rights hereunder in accordance with this Agreement or the Plan.

4.3.    Notices. All notices, requests or other communications provided for in this Agreement shall be made in writing by (a) actual delivery to the party entitled thereto, (b) mailing to the last known address of the party entitled thereto, via certified or registered mail, return receipt requested or (c) telecopy with confirmation of receipt. The notice shall be deemed to be received, in case of actual delivery, on the date of its actual receipt by the party entitled thereto, in case of mailing, on the tenth calendar day following the date of such mailing, and, in the case of telecopy, on the date of confirmation of receipt.

4.4.    Governing Law. This Agreement shall be governed by, and interpreted in accordance with, the internal laws of the State of Delaware.

Exhibit 10.1

4.5.    Award Subject to Clawback. The Award is subject to forfeiture, recovery by the Company or other action pursuant to the AptarGroup, Inc. Policy on Recoupment or Forfeiture of Incentive Compensation, as in effect on the Grant Date, or as amended following the Grant Date to comply with applicable law or regulation, including any rules adopted by the New York Stock Exchange.

[signature page follows]

Exhibit 10.1

APTARGROUP, INC.

By:

Acknowledgment, Acceptance and Agreement:

By accepting this grant on the Company’s stock plan administrator’s website, I hereby accept the Options granted to me and acknowledge and agree to be bound by the terms and conditions of the Agreement and the Plan.

EX-31.1

Exhibit 31.1

CERTIFICATION

I, Stephan B. Tanda, certify that:

1.I have reviewed this quarterly report on Form 10-Q of AptarGroup, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a--15(e) and 15d--15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a--15(f) and 15d--15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 26, 2024
By:	/s/ STEPHAN B. TANDA
	Stephan B. Tanda
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION

I, Robert W. Kuhn, certify that:

1.I have reviewed this quarterly report on Form 10-Q of AptarGroup, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a--15(e) and 15d--15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a--15(f) and 15d--15(f)) for the registrant and have:

a)designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	April 26, 2024
By:	/s/ROBERT W. KUHN
	Robert W. Kuhn
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

Certificate Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

I, Stephan B. Tanda, president and chief executive officer of AptarGroup, Inc., certify that (i) the Quarterly Report on Form 10-Q of AptarGroup, Inc. for the quarter ended March 31, 2024 (the “Form 10-Q”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of AptarGroup, Inc.

By:	/s/ STEPHAN B. TANDA
	Stephan B. Tanda
	President and Chief Executive Officer
	April 26, 2024

EX-32.2

Exhibit 32.2

Certificate Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to

Section 906 of the Sarbanes-Oxley Act of 2002

I, Robert W. Kuhn, executive vice president and chief financial officer of AptarGroup, Inc., certify that (i) the Quarterly Report on Form 10-Q of AptarGroup, Inc. for the quarter ended March 31, 2024 (the “Form 10-Q”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934 and (ii) the information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of AptarGroup, Inc.

By:	/s/ ROBERT W. KUHN
	Robert W. Kuhn
	Executive Vice President and Chief Financial Officer
	April 26, 2024

XML

COVER - shares	3 Months Ended
	Mar. 31, 2024	Apr. 22, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Document Transition Report	false
Entity File Number	1-11846
Entity Registrant Name	AptarGroup, Inc
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	36-3853103
Entity Address, Address Line One	265 EXCHANGE DRIVE
Entity Address, Address Line Two	SUITE 301
Entity Address, City or Town	CRYSTAL LAKE
Entity Address, State or Province	IL
Entity Address, Postal Zip Code	60014
City Area Code	815
Local Phone Number	477-0424
Title of 12(b) Security	Common Stock, $.01 par value
Trading Symbol	ATR
Security Exchange Name	NYSE
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		66,263,631
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Entity Central Index Key	0000896622
Amendment Flag	false

XML

CONDENSED CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Statement [Abstract]
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 administrative	152,780	147,923
Depreciation and amortization	64,349	59,259
Restructuring initiatives	3,480	11,524
​Total Operating Expenses	803,365	776,128
Operating Income	112,083	83,939
Other (Expense) Income:
Interest expense	(10,175)	(10,228)
Interest income	2,898	672
Net investment gain	592	188
Equity in results of affiliates	(221)	(131)
Miscellaneous expense, net	(859)	(1,171)
​Total Other Expense	(7,765)	(10,670)
Income before Income Taxes	104,318	73,269
Provision for Income Taxes	21,385	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 (in dollars per share)	$ 1.26	$ 0.84
Diluted (in dollars per share)	$ 1.23	$ 0.82
Average Number of Shares Outstanding:
Basic (in shares)	66,064	65,372
Diluted (in shares)	67,432	66,735
Dividends per Common Share (in dollars per share)	$ 0.41	$ 0.38

XML

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Statement of Comprehensive Income [Abstract]
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 tax	2,908	(1,367)
Defined benefit pension plan, net of tax
Actuarial gain, net of tax	80	61
Amortization of prior service cost included in net income, net of tax	20	32
Amortization of net loss included in net income, net of tax	183	160
Total defined benefit pension plan, net of tax	283	253
Total other comprehensive (loss) income	(38,911)	24,510
Comprehensive Income	44,022	79,096
Comprehensive Loss (Income) Attributable to Noncontrolling Interests	400	(665)
Comprehensive Income Attributable to AptarGroup, Inc.	$ 44,422	$ 78,431

XML

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Cash and equivalents	$ 199,834	$ 223,643
Short-term investments	1,223	0
Accounts and notes receivable, less current expected credit loss ("CECL") of $15,512 in 2024 and $16,217 in 2023	724,015	677,822
Inventories	496,840	513,053
Prepaid and other	138,097	134,761
Total Current Assets	1,560,009	1,549,279
Land	29,542	30,090
Buildings and improvements	751,174	748,897
Machinery and equipment	3,172,554	3,183,097
Property, Plant and Equipment, Gross	3,953,270	3,962,084
Less: Accumulated depreciation	(2,488,874)	(2,484,021)
​Property, Plant and Equipment, Net	1,464,396	1,478,063
Investments in equity securities	48,911	49,203
Goodwill	953,255	963,418
Intangible assets, net	269,425	283,211
Operating lease right-of-use assets	59,211	59,074
Miscellaneous	81,879	69,642
Total Other Assets	1,412,681	1,424,548
Total Assets	4,437,086	4,451,890
Current Liabilities:
Notes payable, revolving credit facility and overdrafts	164,042	81,794
Current maturities of long-term obligations, net of unamortized debt issuance costs	271,317	376,426
Accounts payable, accrued and other liabilities	760,779	793,089
Total Current Liabilities	1,196,138	1,251,309
Long-Term Obligations, net of unamortized debt issuance costs	680,358	681,188
Deferred income taxes	17,007	19,016
Retirement and deferred compensation plans	64,156	62,795
Operating lease liabilities	43,599	45,267
Deferred and other non-current liabilities	72,895	71,017
Commitments and contingencies	0	0
​Total Deferred Liabilities and Other	197,657	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 value	1,075,329	1,044,429
Retained earnings	2,165,858	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’ Equity	2,348,859	2,306,824
Noncontrolling interests in subsidiaries	14,074	14,474
Total Stockholders’ Equity	2,362,933	2,321,298
Total Liabilities and Stockholders’ Equity	$ 4,437,086	$ 4,451,890

XML

CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands, shares in Millions	Mar. 31, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Accounts and notes receivable, allowance for credit loss	$ 15,512	$ 16,217
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	199.0	199.0
Common stock, shares issued (in shares)	72.0	71.7
Treasury stock (in shares)	5.8	5.8

XML

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands	Total	Retained Earnings	Accumulated Other Comprehensive (Loss) Income	Common Stock Par Value	Treasury Stock	Capital in Excess of Par Value	Non- Controlling Interest
Beginning balance at Dec. 31, 2022	$ 2,068,204	$ 1,929,240	$ (341,366)	$ 709	$ (503,266)	$ 968,618	$ 14,269
Increase (Decrease) in Stockholders' Equity
Net income (loss)	54,586	54,764					(178)
Foreign currency translation adjustments	25,624	(226)	25,007				843
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	25,034			2	2,666	22,366
Cash dividends declared on common stock	(24,848)	(24,848)
Treasury stock purchased	(19,729)				(19,729)
Ending balance at Mar. 31, 2023	2,127,757	1,958,930	(317,473)	711	(520,329)	990,984	14,934
Beginning balance at Dec. 31, 2023	2,321,298	2,109,816	(308,734)	717	(539,404)	1,044,429	14,474
Increase (Decrease) in Stockholders' Equity
Net income (loss)	82,933	83,104					(171)
Foreign currency translation adjustments	(42,102)	2	(41,875)				(229)
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	36,753			3	5,850	30,900
Cash dividends declared on common stock	(27,064)	(27,064)
Treasury stock purchased	(12,076)				(12,076)
Ending balance at Mar. 31, 2024	$ 2,362,933	$ 2,165,858	$ (347,418)	$ 720	$ (545,630)	$ 1,075,329	$ 14,074

XML

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Cash Flows from Operating Activities:
Net Income	$ 82,933	$ 54,586
Adjustments to reconcile net income to net cash provided by operations:
Depreciation	53,026	48,297
Amortization	11,323	10,962
Stock-based compensation	18,276	15,042
(Release) Provision for CECL	(568)	2,203
Loss (gain) on disposition of fixed assets	120	(302)
Net gain on remeasurement of equity securities	(592)	(188)
Deferred income taxes	(7,958)	(5,483)
Defined benefit plan expense	3,724	3,537
Equity in results of affiliates	221	131
Changes in balance sheet items, excluding effects from foreign currency adjustments:
Accounts and other receivables	(56,527)	(7,845)
Inventories	7,266	(17,415)
Prepaid and other current assets	(2,720)	(20,578)
Accounts payable, accrued and other liabilities	4,712	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 Operations	92,333	98,304
Cash Flows from Investing Activities:
Capital expenditures	(75,661)	(77,825)
Proceeds from sale of property, plant and equipment	175	635
Purchase of short-term investments	(1,066)	0
Acquisition of businesses, net of cash acquired and release of escrow	0	(11,209)
Acquisition of intangible assets, net	0	(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 overdrafts	13,504	16,086
Repayments of notes payable and overdrafts	0	(7,473)
Proceeds and (repayments) of short term revolving credit facility, net	68,838	0
Proceeds from long-term obligations	26	210
Repayments of long-term obligations	(101,320)	(2,888)
Dividends paid	(27,064)	(24,848)
Proceeds from stock option exercises	22,340	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 Period	223,643	142,732
Cash and Equivalents and Restricted Cash at End of Period	199,834	127,810
Cash and equivalents	199,834	126,810
Restricted cash included in prepaid and other	0	1,000
Total Cash and Equivalents and Restricted Cash shown in the Statement of Cash Flows	$ 199,834	$ 127,810

XML

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

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.

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.

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REVENUE

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

REVENUE

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
Segment	Europe		Domestic		Latin America		Asia		Total
Aptar Pharma	$	212,175	$	125,810	$	12,622	$	56,686	$	407,293
Aptar Beauty	206,190		63,277		38,187		19,666		327,320
Aptar Closures	56,027		88,816		21,273		14,719		180,835
Total	$	474,392	$	277,903	$	72,082	$	91,071	$	915,448

	For the Three Months Ended March 31, 2023
Segment	Europe		Domestic		Latin America		Asia		Total
Aptar Pharma	$	192,120	$	115,312	$	8,197	$	40,417	$	356,046
Aptar Beauty	209,352		58,988		36,565		21,484		326,389
Aptar Closures	57,327		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, 2023		Balance as of March 31, 2024		Increase/ (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.

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.

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INVENTORIES

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

INVENTORIES

INVENTORIES

Inventories, by component net of reserves, consisted of:

	March 31, 2024		December 31, 2023
Raw materials	$	138,096	$	145,798
Work in process	182,190		176,191
Finished goods	176,554		191,064
Total	$	496,840	$	513,053

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GOODWILL AND OTHER INTANGIBLE ASSETS

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND OTHER INTANGIBLE ASSETS

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 Closures		Total
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, 2024						December 31, 2023
Weighted Average Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization		Net Value		Gross Carrying Amount		Accumulated Amortization		Net Value
Amortized intangible assets:
Patents	9.9	$	7,239	$	(1,882)	$	5,357	$	7,362	$	(1,754)	$	5,608
Acquired technology	11.2	140,840		(72,926)		67,914		142,837		(70,520)		72,317
Customer relationships	13.5	306,749		(129,631)		177,118		308,889		(124,648)		184,241
Trademarks and trade names	7.9	43,519		(34,532)		8,987		43,932		(33,368)		10,564
License agreements and other	32.3	16,935		(6,886)		10,049		17,213		(6,732)		10,481
Total intangible assets	13.4	$	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)
2025	39,865
2026	37,545
2027	30,284
2028	21,166
Thereafter	109,278

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.

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INCOME TAXES

3 Months Ended

Mar. 31, 2024

Income Tax Disclosure [Abstract]

INCOME TAXES

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.

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DEBT

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

DEBT

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, 2024		December 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 Liabilities	26,115		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

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 Two	131,503
Year Three	130,561
Year Four	74
Year Five	59
Thereafter	399,242

Covenants

Our revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including:

	Requirement	Level 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.

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LEASES

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

LEASES

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,	2024		2023
Operating lease cost	$	4,881	$	5,414
Finance lease cost:
Amortization of right-of-use assets	$	1,670	$	911
Interest on lease liabilities	296		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,	2024		2023
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 leases	126		301
Financing cash flows from finance leases	1,199		830
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,397	$	4,844
Finance leases	191		200

LEASES

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,	2024		2023
Operating lease cost	$	4,881	$	5,414
Finance lease cost:
Amortization of right-of-use assets	$	1,670	$	911
Interest on lease liabilities	296		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,	2024		2023
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 leases	126		301
Financing cash flows from finance leases	1,199		830
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,397	$	4,844
Finance leases	191		200

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RETIREMENT AND DEFERRED COMPENSATION PLANS

3 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

RETIREMENT AND DEFERRED COMPENSATION PLANS

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 Plans				Foreign Plans
Three Months Ended March 31,	2024		2023		2024		2023
Service cost	$	2,365	$	2,409	$	1,630	$	1,470
Interest cost	2,232		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.

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

3 Months Ended

Mar. 31, 2024

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME

Changes in Accumulated Other Comprehensive (Loss) Income by Component:

	Foreign Currency		Defined Benefit Pension Plans		Derivatives		Total
Balance - December 31, 2022	$	(328,740)	$	(5,951)	$	(6,675)	$	(341,366)
Other comprehensive income (loss) before reclassifications	25,007		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)

Reclassifications Out of Accumulated Other Comprehensive (Loss) Income:

Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line in the Statement Where Net Income is Presented
Three Months Ended March 31,	2024		2023
Defined Benefit Pension Plans
Amortization of net loss	$	259	$	228	(1)
Amortization of prior service cost	28		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.

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES

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.

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, 2024				December 31, 2023
	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments
Derivative Assets
Foreign Exchange Contracts	Prepaid and other	$	—	$	306	$	—	$	386
		$	—	$	306	$	—	$	386
Derivative Liabilities
Foreign Exchange Contracts	Accounts payable, accrued and other liabilities	$	—	$	438	$	—	$	221
Cross Currency Swap Contract (1)	Accounts payable, accrued and other liabilities	18,347		—		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 Instruments	Amount 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
	2024		2023			2024		2023
Cross currency swap agreement:
Interest component	$	—	$	—	Interest expense	$	—	$	—	$	(10,175)
Foreign exchange component	2,908		(1,367)		Miscellaneous, net	—		—		(859)
	$	2,908	$	(1,367)		$	—	$	—

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
		2024		2023
Foreign Exchange Contracts	Other (Expense) Income: Miscellaneous, net	$	(297)	$	(860)
		$	(297)	$	(860)

			Gross Amounts Offset in the Statement of Financial Position	Net Amounts Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position
	Gross Amount					Financial Instruments	Cash Collateral Received	Net 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

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FAIR VALUE

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

FAIR VALUE

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.

As of March 31, 2024, the fair values of our financial assets and liabilities were categorized as follows:

	Total		Level 1		Level 2		Level 3
Assets
Investment in equity securities (1)	$	1,698	$	1,698	$	—	$	—
Foreign exchange contracts (2)	306		—		306		—
Convertible notes	5,650		—		—		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:

	Total		Level 1		Level 2		Level 3
Assets
Investment in equity securities (1)	$	1,106	$	1,106	$	—	$	—
Foreign exchange contracts (2)	386		—		386		—
Convertible note	5,650		—		—		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.

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COMMITMENTS AND CONTINGENCIES

3 Months Ended

Mar. 31, 2024

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

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.

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.

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STOCK REPURCHASE PROGRAM

3 Months Ended

Mar. 31, 2024

Equity [Abstract]

STOCK REPURCHASE PROGRAM

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.

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STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

STOCK-BASED COMPENSATION

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,	2024			2023
Fair value per stock award	$	145.79		$	116.17
Grant date stock price	$	141.00		$	111.38
Assumptions:
Aptar's stock price expected volatility	18.80		%	20.00		%
Expected average volatility of peer companies	34.80		%	39.70		%
Correlation assumption	30.70		%	33.30		%
Risk-free interest rate	4.51		%	3.83		%
Dividend yield assumption	1.16		%	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 RSUs			Performance-Based RSUs
	Units	Weighted Average Grant-Date Fair Value		Units	Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2024	335,874	$	115.15	514,383	$	130.10
Granted	101,067	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, 2024	290,807	$	118.43	640,987	$	133.26

Three Months Ended March 31,	2024		2023
Compensation expense	$	13,985	$	12,071
Fair value of units vested	16,319		14,587
Intrinsic value of units vested	20,246		17,046

The actual tax benefit realized for the tax deduction from RSUs was approximately $4.9 million and $2.5 million in the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was $60.4 million of total unrecognized compensation cost relating to RSU awards which is expected to be recognized over a weighted-average period of 2.1 years.

Historically we issued stock options to our employees and non-employee directors. We did not issue stock options between 2019 and 2022. Stock options were reinstituted in 2023 with the exercise price equal to the market price on the date of grant based on the Black-Scholes model and generally vest ratably over three years and expire 10 years after grant.

The Company uses historical data to estimate expected life and volatility. The weighted-average fair value of stock options granted under the stock awards plans were $36.07 per share for all employees, during the first three months of 2024. The weighted-average fair value of stock options granted under the stock awards plans were $19.84 and $24.23 per share for executive officers and all other employees, respectively, during the first three months of 2023. Aptar executive officers received stock options with an exercise price that was 110% of the closing market price on the date of grant. These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

Stock Award Plans:
Three Months Ended March 31,	2024		2023
Dividend Yield	1.28	%	1.41	%
Expected Stock Price Volatility	17.03	%	16.55	%
Risk-free Interest Rate	4.51	%	3.57	%
Expected Life of Option (years)	7.0		7.0

 A summary of option activity under our stock plans during the three months ended March 31, 2024 is presented below:

	Stock Awards Plans				Director Stock Option Plans
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding, January 1, 2024	2,182,784		$	80.63	19,000		$	66.59
Granted	249,663		141.00		—		—
Exercised	(299,595)		70.69		(19,000)		66.59
Forfeited or expired	(4,716)		90.72		—		—
Outstanding at March 31, 2024	2,128,136		$	89.09	—		$	—
Exercisable at March 31, 2024	1,671,615		$	77.98	—		$	—
Weighted-Average Remaining Contractual Term (Years):
Outstanding at March 31, 2024	4.3				0.0
Exercisable at March 31, 2024	2.9				0.0
Aggregate Intrinsic Value:
Outstanding at March 31, 2024	$	116,617			$	—
Exercisable at March 31, 2024	$	110,182			$	—
Intrinsic Value of Options Exercised During the Three Months Ended:
March 31, 2024	$	19,529			$	1,394
March 31, 2023	$	10,118			$	218

Three Months Ended March 31,	2024		2023
Compensation expense (included in SG&A)	$	3,852	$	2,734
Compensation expense (included in Cost of sales)	439		237
Compensation expense, Total	$	4,291	$	2,971
Compensation expense, net of tax	3,744		2,971
Grant date fair value of options vested	2,299		—

The increase in stock option expense is due to the newly issued options as discussed above. Cash received from option exercises for the three months ended March 31, 2024 and 2023 was approximately $22.3 million and $13.8 million, respectively. The actual tax benefit realized for the tax deduction from option exercises was approximately $3.7 million and $2.5 million in the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024, there was $7.3 million of total unrecognized compensation cost relating to stock option awards which is expected to be recognized over a weighted-average period of 2.3 years.

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EARNINGS PER SHARE

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

EARNINGS PER SHARE

EARNINGS PER SHARE

Basic net income per share is calculated by dividing net income attributable to Aptar by the weighted-average number of common shares outstanding during the period. Diluted net income per share is calculated by dividing the net income attributable to Aptar by the weighted-average number of common and common equivalent shares outstanding during the applicable period. The difference between basic and diluted earnings per share is attributable to stock-based compensation awards. Stock-based compensation awards for which total employee proceeds exceed the average market price over the applicable period would have an antidilutive effect on earnings per share, and accordingly, are excluded from the calculation of diluted earnings per share. The reconciliation of basic and diluted earnings per share for the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended
	March 31, 2024				March 31, 2023
	Diluted		Basic		Diluted		Basic
Consolidated operations
Income available to common stockholders	$	83,104	$	83,104	$	54,764	$	54,764
Average equivalent shares
Shares of common stock	66,064		66,064		65,372		65,372
Effect of dilutive stock-based compensation
Stock options	788		—		906		—
Restricted stock	580		—		457		—
Total average equivalent shares	67,432		66,064		66,735		65,372
Net income per share	$	1.23	$	1.26	$	0.82	$	0.84

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SEGMENT INFORMATION

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

SEGMENT INFORMATION

SEGMENT INFORMATION

We are organized into three reporting segments. Operations that sell proprietary dispensing systems, drug delivery systems, sealing solutions and services to the prescription drug, consumer health care, injectables, active material science solutions and digital health markets form our Aptar Pharma segment. Operations that sell dispensing systems and sealing solutions to the beauty, personal care and home care markets form our Aptar Beauty segment. Operations that sell dispensing systems, sealing solutions and food service trays to the food, beverage, personal care, home care, beauty and healthcare markets form our Aptar Closures segment. Aptar Pharma and Aptar Beauty are named for the markets they serve with multiple product platforms, while Aptar Closures is named primarily for a single product platform that serves all available markets.

The accounting policies of the segments are the same as those described in Part II, Item 8, Note 1 - Summary of Significant Accounting Policies in our Annual Report on Form 10-K for the year ended December 31, 2023. We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.

Financial information regarding our reporting segments is shown below:

Three Months Ended March 31,	2024		2023
Total Sales:
Aptar Pharma	$	407,490	$	356,111
Aptar Beauty	334,880		333,338
Aptar Closures	182,697		180,439
Total Sales	$	925,067	$	869,888
Less: Intersegment Sales:
Aptar Pharma	$	197	$	65
Aptar Beauty	7,560		6,949
Aptar Closures	1,862		2,807
Total Intersegment Sales	$	9,619	$	9,821
Net Sales:
Aptar Pharma	$	407,293	$	356,046
Aptar Beauty	327,320		326,389
Aptar Closures	180,835		177,632
Net Sales	$	915,448	$	860,067
Adjusted EBITDA (1):
Aptar Pharma	$	132,178	$	109,298
Aptar Beauty	41,134		37,205
Aptar Closures	27,161		26,008
Corporate & Other, unallocated	(21,641)		(18,836)
Acquisition-related costs (2)	—		(255)
Restructuring Initiatives (3)	(3,480)		(11,524)
Net unrealized investment gain (4)	592		188
Depreciation and amortization	(64,349)		(59,259)
Interest Expense	(10,175)		(10,228)
Interest Income	2,898		672
Income before Income Taxes	$	104,318	$	73,269

________________________________________________

(1)We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.

(2)Acquisition-related costs include transaction costs (and purchase accounting adjustments related to acquisitions and investments) (see Note 17 – Acquisitions for further details).

(3)Restructuring Initiatives includes expense items for the three months ended March 31, 2024 and 2023 as follows (see Note 19 – Restructuring Initiatives for further details):

Three Months Ended March 31,	2024		2023
Restructuring Initiatives by Plan:
Optimization initiative	$	3,497	$	11,540
Prior year initiatives	(17)		(16)
Total Restructuring Initiatives	$	3,480	$	11,524
Restructuring Initiatives by Segment:
Aptar Pharma	$	24	$	1,131
Aptar Beauty	2,710		9,291
Aptar Closures	760		522
Corporate & Other	(14)		580
Total Restructuring Initiatives	$	3,480	$	11,524

(4)Net unrealized investment gain (loss) represents the change in fair value of our investment in PCT (see Note 18 – Investment in Equity Securities for further details).

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ACQUISITIONS

3 Months Ended

Mar. 31, 2024

Business Combination and Asset Acquisition [Abstract]

ACQUISITIONS

ACQUISITIONS

Business Combinations

On March 1, 2023, we completed the acquisition of all the outstanding capital stock of iD SCENT. Located in Lyon, France, iD SCENT is an expert producer of paper fragrance sampling solutions that present multiple sustainability features. The purchase price was approximately $9.4 million (net of $1.4 million cash acquired) and was funded with cash on hand. The results of iD SCENT have been included in the consolidated financial statements within our Aptar Beauty segment since the date of acquisition.

Also on March 1, 2023, we completed the acquisition of 80% of the equity interest of Gulf Closures W.L.L. ( "Gulf Closures"). Gulf Closures, located in Bahrain, is a closure manufacturer for beverage products. The purchase price for 80% ownership was approximately $1.5 million (net of $1.2 million cash acquired) and was funded with cash on hand. This values the full company equity at approximately $3.3 million and implies a non-controlling interest valued at approximately $0.7 million as of the acquisition date. The results of Gulf Closures have been included in the consolidated financial statements within our Aptar Closures segment since the date of acquisition.

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INVESTMENT IN EQUITY SECURITIES

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

INVESTMENT IN EQUITY SECURITIES

INVESTMENT IN EQUITY SECURITIES

Our investment in equity securities consisted of the following:

	March 31, 2024		December 31, 2023
Equity Method Investments:
BTY	$	32,429	$	33,090
Sonmol	4,650		4,751
Desotec GmbH	901		905
Other Investments:
PureCycle	1,698		1,106
YAT	5,262		5,352
Loop	2,894		2,894
Others	1,077		1,105
	$	48,911	$	49,203

Equity Method Investments

Jinyu

On December 10, 2023, we entered into a Share Purchase Agreement to acquire 40% of the equity interests in Ningbo Jinyu Technology Industry Co., Ltd. (referred to as "Jinyu"), a leading manufacturer of dispensing technologies in China for approximately $84 million subject to final closing conditions. This transaction is expected to close in 2024, subject to satisfaction and completion of various closing conditions.

BTY

On January 1, 2020, we acquired 49% of the equity interests in three related companies: Suzhou Hsing Kwang, Suqian Hsing Kwang and Suzhou BTY (collectively referred to as “BTY”) for an approximate purchase price of $32.0 million. We have a call option to acquire an additional 26% to 31% of BTY’s equity interests following the initial lock-up period of 5 years based on a predetermined formula. Subsequent to the second lock-up period, which ends 3 years after the initial lock-up period, we have a call option to acquire the remaining equity interests of BTY based on a predetermined formula. Additionally, the selling shareholders of BTY have a put option for the remaining equity interest to be acquired by Aptar based on a predetermined formula. The BTY entities are leading Chinese manufacturers of high quality, decorative metal components, metal-plastic sub-assemblies, and complete color cosmetics packaging solutions for the beauty industry. For the three months ended March 31, 2024 and March 31, 2023, Aptar had purchases of $2.3 million and $3.5 million, respectively, from BTY. As of March 31, 2024 and December 31, 2023, approximately $1.7 million and $1.8 million, respectively, was due to BTY and included in accounts payable, accrued and other liabilities on our Condensed Consolidated Balance Sheets.

Sonmol

On April 1, 2020, we invested $5.0 million to acquire 30% of the equity interests in Healthcare, Inc., Shanghai Sonmol Internet Technology Co., Ltd. and its subsidiary, Shanghai Sonmol Medical Equipment Co., Ltd. (collectively referred to as “Sonmol”). Sonmol is a leading Chinese pharmaceutical company that provides consumer electric devices and connected devices for asthma control.

Desotec GmbH

During 2009, we invested €574 thousand to acquire 23% of the equity interests in Desotec GmbH, a leading manufacturer of special assembly machines for bulk processing for the pharmaceutical, beauty and closures markets.

Other Investments

In prior years, we invested, through a series of transactions, an aggregate amount of $2.9 million in preferred equity investments in Loop, a sustainability company.

In prior years, we also invested, through a series of transactions, $3.0 million in PureCycle and received $0.7 million of equity in exchange for our resource dedication for technological partnership and support. In November 2020, we increased the value of the PureCycle investment by $3.1 million based on observable price changes. In March 2021, PureCycle was purchased by a special purpose acquisition company and was subsequently listed on Nasdaq under the ticker PCT. At that time, our investment in PureCycle was converted into shares of PCT resulting in less than a 1% ownership interest. This investment is now recorded at fair value based on observable market prices for identical assets and the change in fair value is recorded as a net investment gain or loss in the Condensed Consolidated Statements of Income.

We have sold the following PCT shares related to the PureCycle investment:

	Shares Sold	Proceeds		Realized Gain
July 2023	248,859	$	2,659	$	1,968
August 2023	261,590	$	2,945	$	2,220

For the three months ended March 31, 2024 and 2023, we recorded the following net investment gain on our investment in PureCycle:

Three Months Ended March 31,	2024		2023
Net investment gain	$	592	$	188

On July 7, 2021, we invested approximately $5.9 million to acquire 10% of the equity interests in YAT, a multi-functional, science-driven online skincare solutions company.

There were no indications of impairment noted in the three months ended March 31, 2024 and 2023 related to these investments.

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RESTRUCTURING INITIATIVES

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

RESTRUCTURING INITIATIVES

RESTRUCTURING INITIATIVES

During the third quarter of 2022, we began an initiative to better leverage our fixed cost base through growth and cost reduction measures. For the three months ended March 31, 2024 and 2023, we recognized $3.5 million and $11.5 million of restructuring costs related to this initiative, respectively. The cumulative expense incurred as of March 31, 2024 was $55.2 million.

As of March 31, 2024, we have recorded the following activity associated with our optimization initiative:

	Beginning Reserve at 12/31/2023		Net Charges for the Three Months Ended 3/31/2024		Cash Paid		Interest and FX Impact		Ending Reserve at 3/31/2024
Employee severance	$	27,078	$	1,743	$	(4,453)	$	151	$	24,519
Professional fees and other costs	2,810		1,754		(1,101)		(14)		3,449
Totals	$	29,888	$	3,497	$	(5,554)	$	137	$	27,968

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Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Pay vs Performance Disclosure
Net Income (Loss)	$ 83,104	$ 54,764

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Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)

3 Months Ended

Mar. 31, 2024

Accounting Policies [Abstract]

BASIS OF PRESENTATION

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

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

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.

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 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

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.

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REVENUE (Tables)

3 Months Ended

Mar. 31, 2024

Revenue from Contract with Customer [Abstract]

Schedule of revenue by segment by geographic area

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
Segment	Europe		Domestic		Latin America		Asia		Total
Aptar Pharma	$	212,175	$	125,810	$	12,622	$	56,686	$	407,293
Aptar Beauty	206,190		63,277		38,187		19,666		327,320
Aptar Closures	56,027		88,816		21,273		14,719		180,835
Total	$	474,392	$	277,903	$	72,082	$	91,071	$	915,448

	For the Three Months Ended March 31, 2023
Segment	Europe		Domestic		Latin America		Asia		Total
Aptar Pharma	$	192,120	$	115,312	$	8,197	$	40,417	$	356,046
Aptar Beauty	209,352		58,988		36,565		21,484		326,389
Aptar Closures	57,327		84,768		20,366		15,171		177,632
Total	$	458,799	$	259,068	$	65,128	$	77,072	$	860,067

Schedule of opening and closing balances of contract assets and contract liabilities

The opening and closing balances of our contract asset and contract liabilities were as follows:

	Balance as of December 31, 2023		Balance as of March 31, 2024		Increase/ (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

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INVENTORIES (Tables)

3 Months Ended

Mar. 31, 2024

Inventory Disclosure [Abstract]

Schedule of inventories, by component

Inventories, by component net of reserves, consisted of:

	March 31, 2024		December 31, 2023
Raw materials	$	138,096	$	145,798
Work in process	182,190		176,191
Finished goods	176,554		191,064
Total	$	496,840	$	513,053

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GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

3 Months Ended

Mar. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of changes in the carrying amount of goodwill

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 Closures		Total
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

Schedule of amortized intangible assets

The table below shows a summary of intangible assets as of March 31, 2024 and December 31, 2023.

		March 31, 2024						December 31, 2023
Weighted Average Amortization Period (Years)		Gross Carrying Amount		Accumulated Amortization		Net Value		Gross Carrying Amount		Accumulated Amortization		Net Value
Amortized intangible assets:
Patents	9.9	$	7,239	$	(1,882)	$	5,357	$	7,362	$	(1,754)	$	5,608
Acquired technology	11.2	140,840		(72,926)		67,914		142,837		(70,520)		72,317
Customer relationships	13.5	306,749		(129,631)		177,118		308,889		(124,648)		184,241
Trademarks and trade names	7.9	43,519		(34,532)		8,987		43,932		(33,368)		10,564
License agreements and other	32.3	16,935		(6,886)		10,049		17,213		(6,732)		10,481
Total intangible assets	13.4	$	515,282	$	(245,857)	$	269,425	$	520,233	$	(237,022)	$	283,211

Schedule of future estimated amortization expense

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)
2025	39,865
2026	37,545
2027	30,284
2028	21,166
Thereafter	109,278

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DEBT (Tables)

3 Months Ended

Mar. 31, 2024

Debt Disclosure [Abstract]

Schedule of short-term debt obligations

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

Schedule of long-term obligations

At March 31, 2024 and December 31, 2023, our long-term obligations consisted of the following:

	March 31, 2024		December 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 Liabilities	26,115		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

Schedule of maturities of long-term debt

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 Two	131,503
Year Three	130,561
Year Four	74
Year Five	59
Thereafter	399,242

Schedule of covenants on revolving credit facility and corporate long-term obligations

Our revolving credit facility and corporate long-term obligations require us to satisfy certain financial and other covenants including:

	Requirement	Level 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.

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LEASES (Tables)

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

Schedule of components of lease expense

The components of lease expense for the three months ended March 31, 2024 and 2023 were as follows:

Three Months Ended March 31,	2024		2023
Operating lease cost	$	4,881	$	5,414
Finance lease cost:
Amortization of right-of-use assets	$	1,670	$	911
Interest on lease liabilities	296		299
Total finance lease cost	$	1,966	$	1,210
Short-term lease and variable lease costs	$	5,198	$	4,912

Schedule of supplemental cash flow information related to leases

Supplemental cash flow information related to leases were as follows:

Three Months Ended March 31,	2024		2023
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 leases	126		301
Financing cash flows from finance leases	1,199		830
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	$	5,397	$	4,844
Finance leases	191		200

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RETIREMENT AND DEFERRED COMPENSATION PLANS (Tables)

3 Months Ended

Mar. 31, 2024

Retirement Benefits [Abstract]

Schedule of components of net periodic benefit cost

Components of Net Periodic Benefit Cost:

	Domestic Plans				Foreign Plans
Three Months Ended March 31,	2024		2023		2024		2023
Service cost	$	2,365	$	2,409	$	1,630	$	1,470
Interest cost	2,232		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

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME (Tables)

3 Months Ended

Mar. 31, 2024

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Schedule of changes in accumulated other comprehensive (loss) income by component

Changes in Accumulated Other Comprehensive (Loss) Income by Component:

	Foreign Currency		Defined Benefit Pension Plans		Derivatives		Total
Balance - December 31, 2022	$	(328,740)	$	(5,951)	$	(6,675)	$	(341,366)
Other comprehensive income (loss) before reclassifications	25,007		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)

Schedule of reclassifications out of accumulated other comprehensive (loss) income

Reclassifications Out of Accumulated Other Comprehensive (Loss) Income:

Details about Accumulated Other Comprehensive Income Components	Amount Reclassified from Accumulated Other Comprehensive Income				Affected Line in the Statement Where Net Income is Presented
Three Months Ended March 31,	2024		2023
Defined Benefit Pension Plans
Amortization of net loss	$	259	$	228	(1)
Amortization of prior service cost	28		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.

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES (Tables)

3 Months Ended

Mar. 31, 2024

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of fair value of derivative instruments in the consolidated balance sheets

Fair Value of Derivative Instruments in the Condensed Consolidated Balance Sheets as of March 31, 2024 and December 31, 2023

		March 31, 2024				December 31, 2023
	Balance Sheet Location	Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments		Derivatives Designated as Hedging Instruments		Derivatives not Designated as Hedging Instruments
Derivative Assets
Foreign Exchange Contracts	Prepaid and other	$	—	$	306	$	—	$	386
		$	—	$	306	$	—	$	386
Derivative Liabilities
Foreign Exchange Contracts	Accounts payable, accrued and other liabilities	$	—	$	438	$	—	$	221
Cross Currency Swap Contract (1)	Accounts payable, accrued and other liabilities	18,347		—		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.

Schedule of effect of cash flow hedge accounting on accumulated other comprehensive income (loss)

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 Instruments	Amount 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
	2024		2023			2024		2023
Cross currency swap agreement:
Interest component	$	—	$	—	Interest expense	$	—	$	—	$	(10,175)
Foreign exchange component	2,908		(1,367)		Miscellaneous, net	—		—		(859)
	$	2,908	$	(1,367)		$	—	$	—

Schedule of effect of derivatives not designated as hedging instruments on the consolidated statements of income

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
		2024		2023
Foreign Exchange Contracts	Other (Expense) Income: Miscellaneous, net	$	(297)	$	(860)
		$	(297)	$	(860)

Schedule of offsetting derivative assets and liabilities

			Gross Amounts Offset in the Statement of Financial Position	Net Amounts Presented in the Statement of Financial Position		Gross Amounts not Offset in the Statement of Financial Position
	Gross Amount					Financial Instruments	Cash Collateral Received	Net 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

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FAIR VALUE (Tables)

3 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Schedule of fair values of financial assets and liabilities

As of March 31, 2024, the fair values of our financial assets and liabilities were categorized as follows:

	Total		Level 1		Level 2		Level 3
Assets
Investment in equity securities (1)	$	1,698	$	1,698	$	—	$	—
Foreign exchange contracts (2)	306		—		306		—
Convertible notes	5,650		—		—		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:

	Total		Level 1		Level 2		Level 3
Assets
Investment in equity securities (1)	$	1,106	$	1,106	$	—	$	—
Foreign exchange contracts (2)	386		—		386		—
Convertible note	5,650		—		—		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.

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STOCK-BASED COMPENSATION (Tables)

3 Months Ended

Mar. 31, 2024

Share-Based Payment Arrangement [Abstract]

Schedule of weighted-average assumptions used to estimate fair value of restricted stock units

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,	2024			2023
Fair value per stock award	$	145.79		$	116.17
Grant date stock price	$	141.00		$	111.38
Assumptions:
Aptar's stock price expected volatility	18.80		%	20.00		%
Expected average volatility of peer companies	34.80		%	39.70		%
Correlation assumption	30.70		%	33.30		%
Risk-free interest rate	4.51		%	3.83		%
Dividend yield assumption	1.16		%	1.36		%

Schedule of restricted stock unit activity

A summary of RSU activity as of March 31, 2024 and changes during the three month period then ended is presented below:

	Time-Based RSUs			Performance-Based RSUs
	Units	Weighted Average Grant-Date Fair Value		Units	Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2024	335,874	$	115.15	514,383	$	130.10
Granted	101,067	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, 2024	290,807	$	118.43	640,987	$	133.26

Schedule of compensation expense, fair value, and intrinsic value related to RSU's

Three Months Ended March 31,	2024		2023
Compensation expense	$	13,985	$	12,071
Fair value of units vested	16,319		14,587
Intrinsic value of units vested	20,246		17,046

Schedule of share-based payment award, stock options, valuation assumptions

These values were estimated on the respective dates of grant using the Black-Scholes option-pricing model with the following weighted-average assumptions:

Stock Award Plans:
Three Months Ended March 31,	2024		2023
Dividend Yield	1.28	%	1.41	%
Expected Stock Price Volatility	17.03	%	16.55	%
Risk-free Interest Rate	4.51	%	3.57	%
Expected Life of Option (years)	7.0		7.0

Schedule of option activity

A summary of option activity under our stock plans during the three months ended March 31, 2024 is presented below:

	Stock Awards Plans				Director Stock Option Plans
	Options		Weighted Average Exercise Price		Options		Weighted Average Exercise Price
Outstanding, January 1, 2024	2,182,784		$	80.63	19,000		$	66.59
Granted	249,663		141.00		—		—
Exercised	(299,595)		70.69		(19,000)		66.59
Forfeited or expired	(4,716)		90.72		—		—
Outstanding at March 31, 2024	2,128,136		$	89.09	—		$	—
Exercisable at March 31, 2024	1,671,615		$	77.98	—		$	—
Weighted-Average Remaining Contractual Term (Years):
Outstanding at March 31, 2024	4.3				0.0
Exercisable at March 31, 2024	2.9				0.0
Aggregate Intrinsic Value:
Outstanding at March 31, 2024	$	116,617			$	—
Exercisable at March 31, 2024	$	110,182			$	—
Intrinsic Value of Options Exercised During the Three Months Ended:
March 31, 2024	$	19,529			$	1,394
March 31, 2023	$	10,118			$	218

Schedule of compensation expense, and fair value related to options

Three Months Ended March 31,	2024		2023
Compensation expense (included in SG&A)	$	3,852	$	2,734
Compensation expense (included in Cost of sales)	439		237
Compensation expense, Total	$	4,291	$	2,971
Compensation expense, net of tax	3,744		2,971
Grant date fair value of options vested	2,299		—

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EARNINGS PER SHARE (Tables)

3 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Schedule of reconciliation of basic and diluted earnings per share

The reconciliation of basic and diluted earnings per share for the three months ended March 31, 2024 and 2023 were as follows:

	Three Months Ended
	March 31, 2024				March 31, 2023
	Diluted		Basic		Diluted		Basic
Consolidated operations
Income available to common stockholders	$	83,104	$	83,104	$	54,764	$	54,764
Average equivalent shares
Shares of common stock	66,064		66,064		65,372		65,372
Effect of dilutive stock-based compensation
Stock options	788		—		906		—
Restricted stock	580		—		457		—
Total average equivalent shares	67,432		66,064		66,735		65,372
Net income per share	$	1.23	$	1.26	$	0.82	$	0.84

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SEGMENT INFORMATION (Tables)

3 Months Ended

Mar. 31, 2024

Segment Reporting [Abstract]

Schedule of financial information regarding the company's reportable segments

Financial information regarding our reporting segments is shown below:

Three Months Ended March 31,	2024		2023
Total Sales:
Aptar Pharma	$	407,490	$	356,111
Aptar Beauty	334,880		333,338
Aptar Closures	182,697		180,439
Total Sales	$	925,067	$	869,888
Less: Intersegment Sales:
Aptar Pharma	$	197	$	65
Aptar Beauty	7,560		6,949
Aptar Closures	1,862		2,807
Total Intersegment Sales	$	9,619	$	9,821
Net Sales:
Aptar Pharma	$	407,293	$	356,046
Aptar Beauty	327,320		326,389
Aptar Closures	180,835		177,632
Net Sales	$	915,448	$	860,067
Adjusted EBITDA (1):
Aptar Pharma	$	132,178	$	109,298
Aptar Beauty	41,134		37,205
Aptar Closures	27,161		26,008
Corporate & Other, unallocated	(21,641)		(18,836)
Acquisition-related costs (2)	—		(255)
Restructuring Initiatives (3)	(3,480)		(11,524)
Net unrealized investment gain (4)	592		188
Depreciation and amortization	(64,349)		(59,259)
Interest Expense	(10,175)		(10,228)
Interest Income	2,898		672
Income before Income Taxes	$	104,318	$	73,269

________________________________________________

(1)We evaluate performance of our reporting segments and allocate resources based upon Adjusted EBITDA. Adjusted EBITDA is defined as earnings before net interest, taxes, depreciation, amortization, unallocated corporate expenses, restructuring initiatives, acquisition-related costs, net unrealized investment gains and losses related to observable market price changes on equity securities and other special items.

(2)Acquisition-related costs include transaction costs (and purchase accounting adjustments related to acquisitions and investments) (see Note 17 – Acquisitions for further details).

(3)Restructuring Initiatives includes expense items for the three months ended March 31, 2024 and 2023 as follows (see Note 19 – Restructuring Initiatives for further details):

Three Months Ended March 31,	2024		2023
Restructuring Initiatives by Plan:
Optimization initiative	$	3,497	$	11,540
Prior year initiatives	(17)		(16)
Total Restructuring Initiatives	$	3,480	$	11,524
Restructuring Initiatives by Segment:
Aptar Pharma	$	24	$	1,131
Aptar Beauty	2,710		9,291
Aptar Closures	760		522
Corporate & Other	(14)		580
Total Restructuring Initiatives	$	3,480	$	11,524

(4)Net unrealized investment gain (loss) represents the change in fair value of our investment in PCT (see Note 18 – Investment in Equity Securities for further details).

Schedule of restructuring initiatives

Restructuring Initiatives includes expense items for the three months ended March 31, 2024 and 2023 as follows (see Note 19 – Restructuring Initiatives for further details):

Three Months Ended March 31,	2024		2023
Restructuring Initiatives by Plan:
Optimization initiative	$	3,497	$	11,540
Prior year initiatives	(17)		(16)
Total Restructuring Initiatives	$	3,480	$	11,524
Restructuring Initiatives by Segment:
Aptar Pharma	$	24	$	1,131
Aptar Beauty	2,710		9,291
Aptar Closures	760		522
Corporate & Other	(14)		580
Total Restructuring Initiatives	$	3,480	$	11,524

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INVESTMENT IN EQUITY SECURITIES (Tables)

3 Months Ended

Mar. 31, 2024

Equity Method Investments and Joint Ventures [Abstract]

Schedule of investments in equity securities

Our investment in equity securities consisted of the following:

	March 31, 2024		December 31, 2023
Equity Method Investments:
BTY	$	32,429	$	33,090
Sonmol	4,650		4,751
Desotec GmbH	901		905
Other Investments:
PureCycle	1,698		1,106
YAT	5,262		5,352
Loop	2,894		2,894
Others	1,077		1,105
	$	48,911	$	49,203

Schedule of sale of PCT shares related to Purecycle investment

We have sold the following PCT shares related to the PureCycle investment:

	Shares Sold	Proceeds		Realized Gain
July 2023	248,859	$	2,659	$	1,968
August 2023	261,590	$	2,945	$	2,220

Schedule of net investment gain/loss

For the three months ended March 31, 2024 and 2023, we recorded the following net investment gain on our investment in PureCycle:

Three Months Ended March 31,	2024		2023
Net investment gain	$	592	$	188

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RESTRUCTURING INITIATIVES (Tables)

3 Months Ended

Mar. 31, 2024

Restructuring and Related Activities [Abstract]

Schedule of activity associated with optimization initiative

As of March 31, 2024, we have recorded the following activity associated with our optimization initiative:

	Beginning Reserve at 12/31/2023		Net Charges for the Three Months Ended 3/31/2024		Cash Paid		Interest and FX Impact		Ending Reserve at 3/31/2024
Employee severance	$	27,078	$	1,743	$	(4,453)	$	151	$	24,519
Professional fees and other costs	2,810		1,754		(1,101)		(14)		3,449
Totals	$	29,888	$	3,497	$	(5,554)	$	137	$	27,968

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) $ in Millions	3 Months Ended
	Mar. 31, 2024 USD ($)	Sep. 30, 2023 USD ($) building	Jun. 30, 2023 USD ($) building
Product Information [Line Items]
Assets held-for-sale			$ 0.7
Number of buildings held before the sale | building			3
Number of buildings sold | building		2
Gain on sale of buildings		$ 0.8
Supplier finance program obligation, current	$ 41.2
Minimum
Product Information [Line Items]
Supplier finance program payment terms	60 days
Maximum
Product Information [Line Items]
Supplier finance program payment terms	120 days

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REVENUE - Revenue by Geographic Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
REVENUE
Total	$ 915,448	$ 860,067
Aptar Pharma
REVENUE
Total	407,293	356,046
Aptar Beauty
REVENUE
Total	327,320	326,389
Aptar Closures
REVENUE
Total	180,835	177,632
Europe
REVENUE
Total	474,392	458,799
Europe | Aptar Pharma
REVENUE
Total	212,175	192,120
Europe | Aptar Beauty
REVENUE
Total	206,190	209,352
Europe | Aptar Closures
REVENUE
Total	56,027	57,327
Domestic
REVENUE
Total	277,903	259,068
Domestic | Aptar Pharma
REVENUE
Total	125,810	115,312
Domestic | Aptar Beauty
REVENUE
Total	63,277	58,988
Domestic | Aptar Closures
REVENUE
Total	88,816	84,768
Latin America
REVENUE
Total	72,082	65,128
Latin America | Aptar Pharma
REVENUE
Total	12,622	8,197
Latin America | Aptar Beauty
REVENUE
Total	38,187	36,565
Latin America | Aptar Closures
REVENUE
Total	21,273	20,366
Asia
REVENUE
Total	91,071	77,072
Asia | Aptar Pharma
REVENUE
Total	56,686	40,417
Asia | Aptar Beauty
REVENUE
Total	19,666	21,484
Asia | Aptar Closures
REVENUE
Total	$ 14,719	$ 15,171

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REVENUE - Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Contract asset (current)	$ 16,562	$ 18,033
Increase / (decrease) in Contract asset (current)	(1,471)
Contract liability (current)	62,880	60,507
Increase / (decrease) in Contract liability (current)	2,373
Contract liability (long-term)	42,458	$ 37,756
Increase / (decrease) in Contract liability (long-term)	4,702
Revenue recognized previously included in current contract liabilities	33,100
Revenue recognized previously included in current contract liabilities at the beginning of the year	$ 25,600

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INVENTORIES (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Inventories, by component
Raw materials	$ 138,096	$ 145,798
Work in process	182,190	176,191
Finished goods	176,554	191,064
Total	$ 496,840	$ 513,053

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GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($)
Changes in the carrying amount of goodwill
Goodwill, beginning balance	$ 963,418
Foreign currency exchange effects	(10,163)
Goodwill, ending balance	953,255
Operating segment | Aptar Pharma
Changes in the carrying amount of goodwill
Goodwill, beginning balance	508,447
Foreign currency exchange effects	(7,739)
Goodwill, ending balance	500,708
Operating segment | Aptar Beauty
Changes in the carrying amount of goodwill
Goodwill, beginning balance	287,097
Foreign currency exchange effects	(1,857)
Goodwill, ending balance	285,240
Operating segment | Aptar Closures
Changes in the carrying amount of goodwill
Goodwill, beginning balance	167,874
Foreign currency exchange effects	(567)
Goodwill, ending balance	$ 167,307

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GOODWILL AND OTHER INTANGIBLE ASSETS - Summary of Intangible Assets (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Dec. 31, 2023
Amortized intangible assets
Gross Carrying Amount	$ 515,282		$ 520,233
Accumulated Amortization	(245,857)		(237,022)
Net Value	269,425		283,211
Aggregate amortization expense	$ 11,323	$ 10,963
Weighted Average Amortization Period (Years)
Amortized intangible assets
Weighted Average Amortization Period (Years)	13 years 4 months 24 days
Patents
Amortized intangible assets
Gross Carrying Amount	$ 7,239		7,362
Accumulated Amortization	(1,882)		(1,754)
Net Value	$ 5,357		5,608
Patents | Weighted Average Amortization Period (Years)
Amortized intangible assets
Weighted Average Amortization Period (Years)	9 years 10 months 24 days
Acquired technology
Amortized intangible assets
Gross Carrying Amount	$ 140,840		142,837
Accumulated Amortization	(72,926)		(70,520)
Net Value	$ 67,914		72,317
Acquired technology | Weighted Average Amortization Period (Years)
Amortized intangible assets
Weighted Average Amortization Period (Years)	11 years 2 months 12 days
Customer relationships
Amortized intangible assets
Gross Carrying Amount	$ 306,749		308,889
Accumulated Amortization	(129,631)		(124,648)
Net Value	$ 177,118		184,241
Customer relationships | Weighted Average Amortization Period (Years)
Amortized intangible assets
Weighted Average Amortization Period (Years)	13 years 6 months
Trademarks and trade names
Amortized intangible assets
Gross Carrying Amount	$ 43,519		43,932
Accumulated Amortization	(34,532)		(33,368)
Net Value	$ 8,987		10,564
Trademarks and trade names | Weighted Average Amortization Period (Years)
Amortized intangible assets
Weighted Average Amortization Period (Years)	7 years 10 months 24 days
License agreements and other
Amortized intangible assets
Gross Carrying Amount	$ 16,935		17,213
Accumulated Amortization	(6,886)		(6,732)
Net Value	$ 10,049		$ 10,481
License agreements and other | Weighted Average Amortization Period (Years)
Amortized intangible assets
Weighted Average Amortization Period (Years)	32 years 3 months 18 days

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GOODWILL AND OTHER INTANGIBLE ASSETS - Future Amortization Expense (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
2024	$ 31,287
2025	39,865
2026	37,545
2027	30,284
2028	21,166
Thereafter	$ 109,278

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INCOME TAXES (Details)	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Income Tax Disclosure [Abstract]
Effective income tax rate	20.50%	25.50%

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DEBT - Short-term Debt Obligations (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Dec. 31, 2023
Short-term Debt [Line Items]
Notes payable, revolving credit facility and overdrafts	$ 164,042	$ 81,794
Revolving credit facility 6.33% to 6.43%
Short-term Debt [Line Items]
Notes payable, revolving credit facility and overdrafts	$ 149,500	80,662
Revolving credit facility 6.33% to 6.43% | Minimum
Short-term Debt [Line Items]
Interest rate	6.33%
Revolving credit facility 6.33% to 6.43% | Maximum
Short-term Debt [Line Items]
Interest rate	6.43%
Overdrafts 2.11% to 3.71%
Short-term Debt [Line Items]
Notes payable, revolving credit facility and overdrafts	$ 14,542	$ 1,132
Overdrafts 2.11% to 3.71% | Minimum
Short-term Debt [Line Items]
Interest rate	2.11%
Overdrafts 2.11% to 3.71% | Maximum
Short-term Debt [Line Items]
Interest rate	3.71%

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DEBT - Narrative (Details) € in Millions		3 Months Ended
	Feb. 26, 2024 USD ($)	Mar. 31, 2024 USD ($) extension	Dec. 31, 2023 USD ($)	Dec. 31, 2023 EUR (€)
Line of Credit Facility [Line Items]
Short-term borrowing		$ 164,042,000	$ 81,794,000
Commercial Paper
Line of Credit Facility [Line Items]
Short-term borrowing, maximum borrowing capacity		30,000,000
Short-term borrowing		$ 0	0
Amended Revolving Credit Facility
Line of Credit Facility [Line Items]
Line of credit facility, number of extensions | extension		2
Line of credit facility, duration of extension (in years)		1 year
Line of credit facility, maximum borrowing capacity		$ 600,000,000
Line of credit facility, increase limit		300,000,000
Long-term line of credit		149,500,000	36,500,000
Compensating balance, amount		0
Amended Revolving Credit Facility | Revolving Credit Facility
Line of Credit Facility [Line Items]
Long-term line of credit			44,200,000	€ 40.0
Amended Revolving Credit Facility | Subsidiaries
Line of Credit Facility [Line Items]
Long-term line of credit		$ 0	$ 0
Senior Unsecured Notes 3.49% Due In 2024
Line of Credit Facility [Line Items]
Debt instrument, repaid	$ 100,000,000
Interest rate on notes	3.49%

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DEBT - Long-Term Obligations (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023	Jul. 06, 2022	Mar. 07, 2022
Components of the company's debt obligations
Finance Lease Liabilities	$ 26,115	$ 26,478
Unamortized debt issuance costs	(3,647)	(3,816)
Long-term debt and lease obligation, including current maturities	951,675	1,057,614
Current maturities of long-term obligations	(271,317)	(376,426)
Total long-term obligations	680,358	681,188
Notes payable 0.00% – 2.25%, due in monthly and annual installments through 2030
Components of the company's debt obligations
Long-term debt, gross	$ 14,207	14,988
Notes payable 0.00% – 2.25%, due in monthly and annual installments through 2030 | Minimum
Components of the company's debt obligations
Interest rate on notes	0.00%
Notes payable 0.00% – 2.25%, due in monthly and annual installments through 2030 | Maximum
Components of the company's debt obligations
Interest rate on notes	2.25%
Senior unsecured notes 3.4%, due in 2024
Components of the company's debt obligations
Long-term debt, gross	$ 50,000	50,000
Interest rate on notes	3.40%
Senior unsecured notes 3.5%, due in 2024
Components of the company's debt obligations
Long-term debt, gross	$ 0	100,000
Interest rate on notes	3.50%
Senior unsecured notes 1.2%, due in 2024
Components of the company's debt obligations
Long-term debt, gross	$ 215,820	220,810
Interest rate on notes	1.20%
Senior unsecured notes 3.6%, due in 2025
Components of the company's debt obligations
Long-term debt, gross	$ 125,000	125,000
Interest rate on notes	3.60%
Senior unsecured notes 3.6%, due in 2026
Components of the company's debt obligations
Long-term debt, gross	$ 125,000	125,000
Interest rate on notes	3.60%
Senior unsecured notes 3.6%, due in 2032, net of discount of $0.8 million
Components of the company's debt obligations
Long-term debt, gross	$ 399,180	$ 399,154
Interest rate on notes	3.60%		3.60%	3.60%
Debt instrument, discount	$ 800

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DEBT - Long-Term Maturities (Details) $ in Thousands	Mar. 31, 2024 USD ($)
Debt Disclosure [Abstract]
Year One	$ 267,768
Year Two	131,503
Year Three	130,561
Year Four	74
Year Five	59
Thereafter	$ 399,242

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DEBT - Covenants (Details)	Mar. 31, 2024
Line of Credit Facility [Line Items]
Consolidated Leverage Ratio	1.39
Consolidated Interest Coverage Ratio	16.75
Minimum
Line of Credit Facility [Line Items]
Consolidated Interest Coverage Ratio	3.00
Maximum
Line of Credit Facility [Line Items]
Consolidated Leverage Ratio	3.50

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LEASES - Components of Lease Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Components of lease expense:
Operating lease cost	$ 4,881	$ 5,414
Finance lease cost:
Amortization of right-of-use assets	1,670	911
Interest on lease liabilities	296	299
Total finance lease cost	1,966	1,210
Short-term lease and variable lease costs	$ 5,198	$ 4,912

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LEASES - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
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 leases	126	301
Financing cash flows from finance leases	1,199	830
Right-of-use assets obtained in exchange for lease obligations:
Operating leases	5,397	4,844
Finance leases	$ 191	$ 200

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RETIREMENT AND DEFERRED COMPENSATION PLANS - Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
United States
Components of net periodic benefit cost:
Service cost	$ 2,365	$ 2,409
Interest cost	2,232	2,158
Expected return on plan assets	(3,101)	(3,094)
Amortization of net loss	0	0
Amortization of prior service cost	0	0
Net periodic benefit cost	1,496	1,473
Foreign Plans
Components of net periodic benefit cost:
Service cost	1,630	1,470
Interest cost	875	903
Expected return on plan assets	(564)	(580)
Amortization of net loss	259	228
Amortization of prior service cost	28	43
Net periodic benefit cost	$ 2,228	$ 2,064

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RETIREMENT AND DEFERRED COMPENSATION PLANS - Narrative (Details)	3 Months Ended
	Mar. 31, 2024 USD ($)
Changes in the benefit obligations and plan assets
Minimum funding requirements	$ 0
United States
Changes in the benefit obligations and plan assets
Defined benefit plan, plan assets, contributions by employer	0
Foreign Plans
Changes in the benefit obligations and plan assets
Defined benefit plan, plan assets, contributions by employer	$ 400,000

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Changes in Accumulated Other Comprehensive Income by Component (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Accumulated other comprehensive income activity
Balance at the beginning of the period	$ 2,306,824
Other comprehensive income (loss) before reclassifications	(38,887)	$ 23,701
Amounts reclassified from accumulated other comprehensive income	203	192
Net current-period other comprehensive income (loss)	(38,684)	23,893
Balance at the end of the period	2,348,859
Accumulated Other Comprehensive Income/(Loss)
Accumulated other comprehensive income activity
Balance at the beginning of the period	(308,734)	(341,366)
Balance at the end of the period	(347,418)	(317,473)
Foreign Currency
Accumulated other comprehensive income activity
Balance at the beginning of the period	(280,082)	(328,740)
Other comprehensive income (loss) before reclassifications	(41,875)	25,007
Amounts reclassified from accumulated other comprehensive income	0	0
Net current-period other comprehensive income (loss)	(41,875)	25,007
Balance at the end of the period	(321,957)	(303,733)
Defined Benefit Pension Plans
Accumulated other comprehensive income activity
Balance at the beginning of the period	(11,891)	(5,951)
Other comprehensive income (loss) before reclassifications	80	61
Amounts reclassified from accumulated other comprehensive income	203	192
Net current-period other comprehensive income (loss)	283	253
Balance at the end of the period	(11,608)	(5,698)
Derivatives
Accumulated other comprehensive income activity
Balance at the beginning of the period	(16,761)	(6,675)
Other comprehensive income (loss) before reclassifications	2,908	(1,367)
Amounts reclassified from accumulated other comprehensive income	0	0
Net current-period other comprehensive income (loss)	2,908	(1,367)
Balance at the end of the period	$ (13,853)	$ (8,042)

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ACCUMULATED OTHER COMPREHENSIVE (LOSS) INCOME - Reclassifications From Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Amount Reclassified from Accumulated Other Comprehensive Income
Total before tax	$ (104,318)	$ (73,269)
Tax impact	21,385	18,683
Total reclassifications for the period	(82,933)	(54,586)
Amount Reclassified from Accumulated Other Comprehensive Income
Amount Reclassified from Accumulated Other Comprehensive Income
Total reclassifications for the period	203	192
Defined Benefit Pension Plans | Amount Reclassified from Accumulated Other Comprehensive Income
Amount Reclassified from Accumulated Other Comprehensive Income
Amortization of net loss	259	228
Amortization of prior service cost	28	43
Total before tax	287	271
Tax impact	(84)	(79)
Total reclassifications for the period	$ 203	$ 192

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Narrative (Details) $ in Thousands, € in Millions	Jul. 06, 2022 EUR (€)	Mar. 31, 2024 USD ($)	Dec. 31, 2023 USD ($)	Jul. 06, 2022 USD ($)	Jul. 06, 2022 EUR (€)	Mar. 07, 2022 USD ($)
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Assets		$ 306	$ 386
Derivative Liabilities		18,785	22,420
Derivatives not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Assets		306	386
Derivative Liabilities		438	221
Cross Currency Swap Contract | Accounts payable, accrued and other liabilities | Derivatives not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liabilities		0	0
Cross Currency Swap Contract | Net Investment Hedging
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, term of contract	7 years
Amount hedged				$ 203,000	€ 200.0
Derivative fixed interest rate				2.5224%	2.5224%
Derivative, annual fixed interest payments receivable				$ 3,700
Cash flow hedge derivative instrument liability at fair value		18,300
Foreign Exchange Contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative, notional amount		68,800
Foreign Exchange Contracts | Prepaid and other | Derivatives not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Assets		306	386
Foreign Exchange Contracts | Accounts payable, accrued and other liabilities | Derivatives not Designated as Hedging Instruments
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Derivative Liabilities		$ 438	$ 221
Senior unsecured notes 3.6%, due in 2032, net of discount of $0.8 million
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Debt instrument, face amount						$ 400,000
Interest rate on notes		3.60%		3.60%	3.60%	3.60%
Debt instrument, periodic payment | €	€ 2.5

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Fair Value of Derivative Instruments in the Consolidated Balance Sheets (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Fair Value of Derivative Instruments
Derivative Assets	$ 306	$ 386
Derivative Liabilities	18,785	22,420
Derivatives Designated as Hedging Instruments
Fair Value of Derivative Instruments
Derivative Assets	0	0
Derivative Liabilities	18,347	22,199
Derivatives Designated as Hedging Instruments | Foreign Exchange Contracts | Prepaid and other
Fair Value of Derivative Instruments
Derivative Assets	0	0
Derivatives Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts payable, accrued and other liabilities
Fair Value of Derivative Instruments
Derivative Liabilities	0	0
Derivatives Designated as Hedging Instruments | Cross Currency Swap Contract | Accounts payable, accrued and other liabilities
Fair Value of Derivative Instruments
Derivative Liabilities	18,347	22,199
Derivatives not Designated as Hedging Instruments
Fair Value of Derivative Instruments
Derivative Assets	306	386
Derivative Liabilities	438	221
Derivatives not Designated as Hedging Instruments | Foreign Exchange Contracts | Prepaid and other
Fair Value of Derivative Instruments
Derivative Assets	306	386
Derivatives not Designated as Hedging Instruments | Foreign Exchange Contracts | Accounts payable, accrued and other liabilities
Fair Value of Derivative Instruments
Derivative Liabilities	438	221
Derivatives not Designated as Hedging Instruments | Cross Currency Swap Contract | Accounts payable, accrued and other liabilities
Fair Value of Derivative Instruments
Derivative Liabilities	$ 0	$ 0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative instruments, gain or (loss)
Interest expense	$ (10,175)	$ (10,228)
Miscellaneous expense, net	(859)	(1,171)
Derivatives in Cash Flow Hedging Relationships
Derivative instruments, gain or (loss)
Amount of Gain Recognized in Other Comprehensive Income on Derivative	2,908	(1,367)
Amount of Gain Reclassified from Accumulated Other Comprehensive Income on Derivative	0	0
Changes in cross currency swap: interest component | Derivatives in Cash Flow Hedging Relationships
Derivative instruments, gain or (loss)
Interest expense	(10,175)
Changes in cross currency swap: interest component | Interest expense | Derivatives in Cash Flow Hedging Relationships
Derivative instruments, gain or (loss)
Amount of Gain Recognized in Other Comprehensive Income on Derivative	0	0
Amount of Gain Reclassified from Accumulated Other Comprehensive Income on Derivative	0	0
Changes in cross currency swap: foreign exchange component | Derivatives in Cash Flow Hedging Relationships
Derivative instruments, gain or (loss)
Miscellaneous expense, net	(859)
Changes in cross currency swap: foreign exchange component | Miscellaneous, net | Derivatives in Cash Flow Hedging Relationships
Derivative instruments, gain or (loss)
Amount of Gain Recognized in Other Comprehensive Income on Derivative	2,908	(1,367)
Amount of Gain Reclassified from Accumulated Other Comprehensive Income on Derivative	$ 0	$ 0

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Effect of Derivatives Not Designated as Hedging Instruments on the Condensed Consolidated Statement of Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Loss Recognized in Income on Derivatives	$ (297)	$ (860)
Foreign Exchange Contracts
Derivative Instruments and Hedging Activities Disclosures [Line Items]
Amount of Loss Recognized in Income on Derivatives	$ (297)	$ (860)

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DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES - Schedule of Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Derivative Assets
Gross Amount	$ 306	$ 386
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts Presented in the Statement of Financial Position	306	386
Gross Amounts not Offset in the Statement of Financial Position, Financial Instruments	0	0
Gross Amounts not Offset in the Statement of Financial Position, Cash Collateral Received	0	0
Net Amount	$ 306	$ 386
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Prepaid and other	Prepaid and other
Derivative Liabilities
Gross Amount	$ 18,785	$ 22,420
Gross Amounts Offset in the Statement of Financial Position	0	0
Net Amounts Presented in the Statement of Financial Position	18,785	22,420
Gross Amounts not Offset in the Statement of Financial Position, Financial Instruments	0	0
Gross Amounts not Offset in the Statement of Financial Position, Cash Collateral Received	0	0
Net Amount	$ 18,785	$ 22,420
Derivative Liability, Statement of Financial Position [Extensible Enumeration]	Accounts payable, accrued and other liabilities	Accounts payable, accrued and other liabilities

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FAIR VALUE - Fair Value of Financial Assets and Liabilities (Details) - Assets and liabilities measured at fair value on recurring basis - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Assets
Investment in equity securities	$ 1,698	$ 1,106
Foreign exchange contracts	306	386
Convertible notes	5,650	5,650
Total assets at fair value	7,654	7,142
Liabilities
Foreign exchange contracts	438	221
Cross currency swap contract	18,347	22,199
Total liabilities at fair value	18,785	22,420
Level 1
Assets
Investment in equity securities	1,698	1,106
Foreign exchange contracts	0	0
Convertible notes	0	0
Total assets at fair value	1,698	1,106
Liabilities
Foreign exchange contracts	0	0
Cross currency swap contract	0	0
Total liabilities at fair value	0	0
Level 2
Assets
Investment in equity securities	0	0
Foreign exchange contracts	306	386
Convertible notes	0	0
Total assets at fair value	306	386
Liabilities
Foreign exchange contracts	438	221
Cross currency swap contract	18,347	22,199
Total liabilities at fair value	18,785	22,420
Level 3
Assets
Investment in equity securities	0	0
Foreign exchange contracts	0	0
Convertible notes	5,650	5,650
Total assets at fair value	5,650	5,650
Liabilities
Foreign exchange contracts	0	0
Cross currency swap contract	0	0
Total liabilities at fair value	$ 0	$ 0

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FAIR VALUE - Narrative (Details) - USD ($) $ in Millions	Mar. 31, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Fair value of long-term obligations	$ 621.2	$ 620.7

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COMMITMENTS AND CONTINGENCIES (Details) - USD ($)	Mar. 31, 2024	Dec. 31, 2023
Indemnification agreements
Commitments and contingencies
Liabilities recorded under indemnification agreements	$ 0	$ 0
Tax Assessment
Commitments and contingencies
Loss contingency estimate of possible loss	13,000,000
Loss contingency liability recorded	0
Tax Assessment, Interest and Penalties | Minimum
Commitments and contingencies
Loss contingency estimate of possible loss	5,000,000
Tax Assessment, Interest and Penalties | Maximum
Commitments and contingencies
Loss contingency estimate of possible loss	$ 6,000,000

XML

STOCK REPURCHASE PROGRAM (Details) - USD ($) shares in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Apr. 18, 2019
Stock repurchase program
Common stock repurchased (retired and held in treasury) (in shares)	86	171
Common stock repurchased (retired and held in treasury)	$ 12,100,000	$ 19,700,000
Remaining authorized repurchase amount	$ 48,600,000
Stock Repurchase Program April 18, 2019
Stock repurchase program
Share repurchases authorized amount			$ 350,000,000

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STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average fair value of stock options granted (in dollars per share)	$ 36.07
Proceeds from stock option exercises	$ 22,340	$ 13,809
Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average fair value of stock options granted (in dollars per share)		$ 19.84
Received stock options exercise price percentage	110.00%
Non Executive Officer Employees
Share-based Compensation Arrangement by Share-based Payment Award
Weighted average fair value of stock options granted (in dollars per share)		$ 24.23
Time-Based RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (in years)	3 years
Performance-Based RSUs
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (in years)	3 years
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award
Tax benefit	$ 4,900	$ 2,500
Unrecognized compensation expense	$ 60,400
Weighted-average period cost will be recognized over	2 years 1 month 6 days
Options
Share-based Compensation Arrangement by Share-based Payment Award
Vesting period (in years)	3 years
Tax benefit	$ 3,700	2,500
Unrecognized compensation expense	$ 7,300
Weighted-average period cost will be recognized over	2 years 3 months 18 days
Expiration period (in years)	10 years
Proceeds from stock option exercises	$ 22,300	$ 13,800

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STOCK-BASED COMPENSATION - Assumptions Used (Details) - Performance-Based RSUs - $ / shares	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award
Fair value per stock award (in dollars per share)	$ 145.79	$ 116.17
Grant date stock price (in dollars per share)	$ 141.00	$ 111.38
Aptar's stock price expected volatility	18.80%	20.00%
Expected average volatility of peer companies	34.80%	39.70%
Correlation assumption	30.70%	33.30%
Risk-free interest rate	4.51%	3.83%
Dividend yield assumption	1.16%	1.36%

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STOCK-BASED COMPENSATION - Restricted Stock Unit Activity (Details)	3 Months Ended
	Mar. 31, 2024 $ / shares shares
Time-Based RSUs
Units
Nonvested outstanding beginning balance (in shares) | shares	335,874
Granted (in shares) | shares	101,067
Vested (in shares) | shares	(144,668)
Forfeited (in shares) | shares	(1,466)
Nonvested outstanding ending balance (in shares) | shares	290,807
Weighted Average Grant-Date Fair Value
Outstanding, Weighted average grant date fair value begging balance (in dollars per share) | $ / shares	$ 115.15
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares	135.60
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares	122.38
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares	116.94
Outstanding, Weighted average grant date fair value ending balance (in dollars per share) | $ / shares	$ 118.43
Performance-Based RSUs
Units
Nonvested outstanding beginning balance (in shares) | shares	514,383
Granted (in shares) | shares	129,540
Vested (in shares) | shares	(642)
Forfeited (in shares) | shares	(2,294)
Nonvested outstanding ending balance (in shares) | shares	640,987
Weighted Average Grant-Date Fair Value
Outstanding, Weighted average grant date fair value begging balance (in dollars per share) | $ / shares	$ 130.10
Granted, Weighted average grant date fair value (in dollars per share) | $ / shares	145.79
Vested, Weighted average grant date fair value (in dollars per share) | $ / shares	130.10
Forfeited, Weighted average grant date fair value (in dollars per share) | $ / shares	133.41
Outstanding, Weighted average grant date fair value ending balance (in dollars per share) | $ / shares	$ 133.26

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STOCK-BASED COMPENSATION - Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award
Compensation expense	$ 13,985	$ 12,071
Fair value of units vested	16,319	14,587
Intrinsic value of units vested	20,246	17,046
Options
Share-based Compensation Arrangement by Share-based Payment Award
Compensation expense	4,291	2,971
Compensation expense, net of tax	3,744	2,971
Grant date fair value of options vested	2,299	0
Options | Compensation expense (included in SG&A)
Share-based Compensation Arrangement by Share-based Payment Award
Compensation expense	3,852	2,734
Options | Compensation expense (included in Cost of sales)
Share-based Compensation Arrangement by Share-based Payment Award
Compensation expense	$ 439	$ 237

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STOCK-BASED COMPENSATION - Schedule of Option Activity (Details) - Options - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Stock Awards Plans
Assumptions used to estimate fair value of stock options granted
Dividend yield assumption	1.28%	1.41%
Expected Stock Price Volatility	17.03%	16.55%
Risk-free interest rate	4.51%	3.57%
Expected Life of Option (years)	7 years	7 years
Stock options activity
Outstanding at the beginning of the period (in shares)	2,182,784
Granted (in shares)	249,663
Exercised (in shares)	(299,595)
Forfeited or expired (in shares)	(4,716)
Outstanding at the end of the period (in shares)	2,128,136
Stock option weighted average exercise price
Outstanding at the beginning of the period (in dollars per share)	$ 80.63
Options granted, Weighted average exercise price (in dollars per share)	141.00
Options exercised, Weighted average exercise price (in dollars per share)	70.69
Options forfeited or expired, Weighted average exercise price (in dollars per share)	90.72
Outstanding at the end of the period (in dollars per share)	$ 89.09
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options exercisable, Number of options (in shares)	1,671,615
Options exercisable, Weighted average exercise price (in dollars per share)	$ 77.98
Options outstanding, Weighted average remaining contractual term (in years)	4 years 3 months 18 days
Options exercisable, Weighted average remaining contractual term (in years)	2 years 10 months 24 days
Options outstanding, Aggregate intrinsic value	$ 116,617
Options exercisable, Aggregate intrinsic value	110,182
Options exercised, Intrinsic value, at end of period	$ 19,529	$ 10,118
Director Stock Option Plans
Stock options activity
Outstanding at the beginning of the period (in shares)	19,000
Granted (in shares)	0
Exercised (in shares)	(19,000)
Forfeited or expired (in shares)	0
Outstanding at the end of the period (in shares)	0
Stock option weighted average exercise price
Outstanding at the beginning of the period (in dollars per share)	$ 66.59
Options granted, Weighted average exercise price (in dollars per share)	0
Options exercised, Weighted average exercise price (in dollars per share)	66.59
Options forfeited or expired, Weighted average exercise price (in dollars per share)	0
Outstanding at the end of the period (in dollars per share)	$ 0
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract]
Options exercisable, Number of options (in shares)	0
Options exercisable, Weighted average exercise price (in dollars per share)	$ 0
Options outstanding, Weighted average remaining contractual term (in years)	0 years
Options exercisable, Weighted average remaining contractual term (in years)	0 years
Options outstanding, Aggregate intrinsic value	$ 0
Options exercisable, Aggregate intrinsic value	0
Options exercised, Intrinsic value, at end of period	$ 1,394	$ 218

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EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Consolidated operations
Income available to common stockholders, diluted	$ 83,104	$ 54,764
Income available to common stockholders, basic	$ 83,104	$ 54,764
Average equivalent shares (in Shares)
Basic (in shares)	66,064	65,372
Effect of dilutive stock-based compensation
Diluted (in shares)	67,432	66,735
Net income per share
Net income per share, diluted (in dollars per share)	$ 1.23	$ 0.82
Net income per share, basic (in dollars per share)	$ 1.26	$ 0.84
Stock options
Effect of dilutive stock-based compensation
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)	788	906
Restricted stock
Effect of dilutive stock-based compensation
Incremental common shares attributable to dilutive effect of share-based payment arrangements (in shares)	580	457

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SEGMENT INFORMATION - Schedule of Reportable Segments (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2024 USD ($) segment	Mar. 31, 2023 USD ($)
Segment Reporting [Abstract]
Number of reportable segments | segment	3
Financial information regarding the Company's reportable segments
Net Sales	$ 915,448	$ 860,067
Acquisition-related costs	0	(255)
Restructuring Initiatives	(3,480)	(11,524)
Net unrealized investment gain	592	188
Depreciation and amortization	(64,349)	(59,259)
Interest Expense	(10,175)	(10,228)
Interest Income	2,898	672
Income before Income Taxes	104,318	73,269
Optimization initiative
Financial information regarding the Company's reportable segments
Restructuring Initiatives	(3,497)	(11,540)
Prior year initiatives
Financial information regarding the Company's reportable segments
Restructuring Initiatives	17	16
Aptar Pharma
Financial information regarding the Company's reportable segments
Net Sales	407,293	356,046
Aptar Beauty
Financial information regarding the Company's reportable segments
Net Sales	327,320	326,389
Aptar Closures
Financial information regarding the Company's reportable segments
Net Sales	180,835	177,632
Operating segment
Financial information regarding the Company's reportable segments
Net Sales	925,067	869,888
Operating segment | Aptar Pharma
Financial information regarding the Company's reportable segments
Net Sales	407,490	356,111
Adjusted EBITDA	132,178	109,298
Restructuring Initiatives	(24)	(1,131)
Operating segment | Aptar Beauty
Financial information regarding the Company's reportable segments
Net Sales	334,880	333,338
Adjusted EBITDA	41,134	37,205
Restructuring Initiatives	(2,710)	(9,291)
Operating segment | Aptar Closures
Financial information regarding the Company's reportable segments
Net Sales	182,697	180,439
Adjusted EBITDA	27,161	26,008
Restructuring Initiatives	(760)	(522)
Intersegment
Financial information regarding the Company's reportable segments
Net Sales	9,619	9,821
Intersegment | Aptar Pharma
Financial information regarding the Company's reportable segments
Net Sales	197	65
Intersegment | Aptar Beauty
Financial information regarding the Company's reportable segments
Net Sales	7,560	6,949
Intersegment | Aptar Closures
Financial information regarding the Company's reportable segments
Net Sales	1,862	2,807
Corporate & Other, unallocated
Financial information regarding the Company's reportable segments
Adjusted EBITDA	(21,641)	(18,836)
Restructuring Initiatives	$ 14	$ (580)

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ACQUISITIONS (Details) - USD ($) $ in Thousands		3 Months Ended
	Mar. 01, 2023	Mar. 31, 2024	Mar. 31, 2023
Acquisitions
Acquisition of businesses, net of cash acquired and release of escrow		$ 0	$ 11,209
iD SCENT
Acquisitions
Acquisition of businesses, net of cash acquired and release of escrow	$ 9,400
Cash acquired	1,400
Gulf Closures
Acquisitions
Acquisition of businesses, net of cash acquired and release of escrow	1,500
Cash acquired	$ 1,200
Percentage of interest acquired	80.00%
Valuation of full company equity of acquired company	$ 3,300
Non-controlling interest value	$ 700

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INVESTMENT IN EQUITY SECURITIES - Schedule of Investments (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Dec. 31, 2023
Schedule of Equity Method Investments [Line Items]
Total equity method investments and other investments	$ 48,911	$ 49,203
BTY
Schedule of Equity Method Investments [Line Items]
Equity Method Investments:	32,429	33,090
Sonmol
Schedule of Equity Method Investments [Line Items]
Equity Method Investments:	4,650	4,751
Desotec GmbH
Schedule of Equity Method Investments [Line Items]
Equity Method Investments:	901	905
PureCycle
Schedule of Equity Method Investments [Line Items]
Other Investments:	1,698	1,106
YAT
Schedule of Equity Method Investments [Line Items]
Other Investments:	5,262	5,352
Loop
Schedule of Equity Method Investments [Line Items]
Other Investments:	2,894	2,894
Others
Schedule of Equity Method Investments [Line Items]
Other Investments:	$ 1,077	$ 1,105

XML

INVESTMENT IN EQUITY SECURITIES - Narrative (Details) € in Thousands					1 Months Ended	3 Months Ended		12 Months Ended	36 Months Ended	60 Months Ended
	Dec. 10, 2023 USD ($)	Jul. 07, 2021 USD ($)	Apr. 01, 2020 USD ($)	Jan. 01, 2020 USD ($) company	Nov. 30, 2020 USD ($)	Mar. 31, 2024 USD ($)	Mar. 31, 2023 USD ($)	Dec. 31, 2009 EUR (€)	Dec. 31, 2021 USD ($)	Dec. 31, 2023 USD ($)	Mar. 31, 2021
Schedule of Equity Method Investments [Line Items]
Investment impairment						$ 0	$ 0
Jinyu
Schedule of Equity Method Investments [Line Items]
Ownership percentage of equity method investment	40.00%
Investment in equity securities	$ 84,000,000
BTY
Schedule of Equity Method Investments [Line Items]
Ownership percentage of equity method investment				49.00%
Investment in equity securities				$ 32,000,000
Number of related companies | company				3
Initial lock-up period (in years)				5 years
Second lock-up period (in years)				3 years
Purchases from related party						2,300,000	$ 3,500,000
Accounts payable and other accrued liabilities						$ 1,700,000				$ 1,800,000
BTY | Call Option | Minimum
Schedule of Equity Method Investments [Line Items]
Ownership percentage of equity method investment				26.00%
BTY | Call Option | Maximum
Schedule of Equity Method Investments [Line Items]
Ownership percentage of equity method investment				31.00%
Sonmol
Schedule of Equity Method Investments [Line Items]
Ownership percentage of equity method investment			30.00%
Investment in equity securities			$ 5,000,000
Desotec GmbH
Schedule of Equity Method Investments [Line Items]
Ownership percentage of equity method investment								23.00%
Investment in equity securities | €								€ 574
Loop | Preferred stock
Schedule of Equity Method Investments [Line Items]
Investment in equity securities										$ 2,900,000
PureCycle
Schedule of Equity Method Investments [Line Items]
Investment ownership percentage											0.01
PureCycle | Preferred stock
Schedule of Equity Method Investments [Line Items]
Investment in equity securities									$ 3,000,000
Equity received in exchange for services									$ 700,000
Increase (decrease) in value of preferred equity stock investment					$ 3,100,000
YAT
Schedule of Equity Method Investments [Line Items]
Investment in equity securities		$ 5,900,000
Investment ownership percentage		0.10

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INVESTMENT IN EQUITY SECURITIES - Purecycle Investment (Details) - PureCycle - Preferred stock - USD ($) $ in Thousands	1 Months Ended
	Aug. 31, 2023	Jul. 31, 2023
Schedule of Equity Method Investments [Line Items]
Shares Sold (in shares)	261,590	248,859
Proceeds	$ 2,945	$ 2,659
Realized Gain	$ 2,220	$ 1,968

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INVESTMENT IN EQUITY SECURITIES - Net Investment Gain/Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Schedule of Equity Method Investments [Line Items]
Net investment gain	$ 592	$ 188
PureCycle | Preferred stock
Schedule of Equity Method Investments [Line Items]
Net investment gain	$ 592	$ 188

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RESTRUCTURING INITIATIVES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring Cost and Reserve [Line Items]
Restructuring initiatives	$ 3,480	$ 11,524
Optimization Plan
Restructuring Cost and Reserve [Line Items]
Restructuring initiatives	3,497	$ 11,500
Cumulative expense incurred	$ 55,200

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RESTRUCTURING INITIATIVES - Activity associated with optimization initiative (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2024	Mar. 31, 2023
Restructuring reserve
Net Charges	$ 3,480	$ 11,524
Optimization Plan
Restructuring reserve
Restructuring reserve, balance at the beginning of the period	29,888
Net Charges	3,497	$ 11,500
Cash Paid	(5,554)
Interest and FX Impact	137
Restructuring reserve, balance at the end of the period	27,968
Employee severance | Optimization Plan
Restructuring reserve
Restructuring reserve, balance at the beginning of the period	27,078
Net Charges	1,743
Cash Paid	(4,453)
Interest and FX Impact	151
Restructuring reserve, balance at the end of the period	24,519
Professional fees and other costs | Optimization Plan
Restructuring reserve
Restructuring reserve, balance at the beginning of the period	2,810
Net Charges	1,754
Cash Paid	(1,101)
Interest and FX Impact	(14)
Restructuring reserve, balance at the end of the period	$ 3,449