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 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,	2025			2024
Fair value per stock award	$	154.20		$	145.79
Grant date stock price	$	147.84		$	141.00
Assumptions:
Aptar's stock price expected volatility	17.70		%	18.80		%
Expected average volatility of peer companies	34.10		%	34.80		%
Correlation assumption	31.00		%	30.70		%
Risk-free interest rate	4.03		%	4.51		%
Dividend yield assumption	1.22		%	1.16		%



	Time-Based RSUs			Performance-Based RSUs
	Units	Weighted Average Grant-Date Fair Value		Units	Weighted Average Grant-Date Fair Value
Nonvested at January 1, 2025	277,245	$	123.28	513,226	$	127.17
Granted	79,584	144.61		142,543	153.88
Vested	(118,820)	117.49		(1,594)	107.41
Forfeited	(338)	120.28		(9,756)	116.40
Nonvested at March 31, 2025	237,671	$	132.99	644,419	$	133.29


Three Months Ended March 31,	2025		2024
Compensation expense	$	14,763	$	13,985
Fair value of units vested	12,406		16,319
Intrinsic value of units vested	17,624		20,246

The actual tax benefit realized for the tax deduction from RSUs was approximately $0.9 million and $4.9 million in the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, there was $63.0 million of total unrecognized compensation cost relating to RSU awards which is expected to be recognized over a weighted-average period of 2.2 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 and valued 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 $36.91 and $36.07 per share during the first three months of 2025 and 2024, respectively. 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,	2025		2024
Dividend Yield	1.17	%	1.28	%
Expected Stock Price Volatility	17.66	%	17.03	%
Risk-free Interest Rate	4.21	%	4.51	%
Expected Life of Option (years)	7.0		7.0



	Stock Awards Plans
	Options		Weighted Average Exercise Price
Outstanding, January 1, 2025	1,663,307		$	93.69
Granted	225,719		147.84
Exercised	(46,153)		72.64
Forfeited or expired	(4,380)		76.30
Outstanding at March 31, 2025	1,838,493		$	100.91
Exercisable at March 31, 2025	1,345,846		$	86.96
Weighted-Average Remaining Contractual Term (Years):
Outstanding at March 31, 2025	4.8
Exercisable at March 31, 2025	3.2
Aggregate Intrinsic Value:
Outstanding at March 31, 2025	$	87,249
Exercisable at March 31, 2025	$	82,645
Intrinsic Value of Options Exercised During the Three Months Ended:
March 31, 2025	$	3,747
March 31, 2024	$	19,529


Three Months Ended March 31,	2025		2024
Compensation expense (included in SG&A)	$	4,046	$	3,852
Compensation expense (included in Cost of sales)	383		439
Compensation expense, Total	$	4,429	$	4,291
Compensation expense, net of tax	3,852		3,744
Grant date fair value of options vested	5,243		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, 2025 and 2024 was approximately $3.4 million and $22.3 million, respectively. The actual tax benefit realized for the tax deduction from option exercises was approximately $3.4 million and $3.7 million in the three months ended March 31, 2025 and 2024, respectively. As of March 31, 2025, there was $8.3 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.